-----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, LVJibUCM+OxnIiblFpNgkKQCMG27cC3KeByBdWBh5YePlztHuJ6bZdf+iDzTg+Za 4WhIaPEm70kLWs+Gm9ap+Q== 0000866841-97-000007.txt : 19970327 0000866841-97-000007.hdr.sgml : 19970327 ACCESSION NUMBER: 0000866841-97-000007 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19970131 FILED AS OF DATE: 19970326 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RANSON MANAGED PORTFOLIOS CENTRAL INDEX KEY: 0000866841 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 481084551 STATE OF INCORPORATION: KS FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06153 FILM NUMBER: 97563678 BUSINESS ADDRESS: STREET 1: 1 NORTH MAIN CITY: MINOT STATE: ND ZIP: 58703 BUSINESS PHONE: 7018525292 MAIL ADDRESS: STREET 1: 1 NORTH MAIN CITY: MINOT STATE: ND ZIP: 58703 N-30D 1 SEMI-ANNUAL REPORT RANSON MANAGED PORTFOLIOS Dear Shareholder: We are pleased to submit the semi-annual report for The Kansas Municipal Fund. Included with this report is a list of portfolio holdings, along with the financial statements for the period ended January 31, 1997. Management Discussion and Analysis: Moderate economic growth and low inflation during the period allowed municipal bond prices to advance generally until later in the period. Then bond values began to move lower as concerns about possible Federal Reserve monetary policy tightening settled into the market. The adviser employed a protective hedge by using U.S. Treasury futures in anticipation of lower valuations. This had the effect of stabilizing share price from erosion during periods when interest rates were rising and tempering share price increases when interest rates decreased. The Kansas Municipal Fund turned in steady performance for the period. Net asset value per share was $12.14 at the beginning of the period and increased to $12.30 by January 31, 1997. The adviser continues to invest primarily in high-grade Kansas tax-exempt bonds. More information on the portfolio makeup and performance are included on the next page. Economic Outlook and Municipal Bond Overview: U.S. economic growth has continued at a moderate pace and inflation has not been excessive. As 1997 unfolds we anticipate that the Federal Reserve will remain vigilant and may possibly move to curb inflation by tightening credit. Tax-exempt bonds should offer reasonable stability and liberal returns in the months ahead. We continue to be pleased with the performance of the Fund and would like to take this opportunity to thank you for your support and look forward to serving the shareholders of The Kansas Municipal Fund. Sincerely, Robert E. Walstad President THE KANSAS MUNICIPAL FUND January 31, 1997 (Unaudited) The Kansas Municipal Fund ------------------------- Performance and Composition Portfolio Quality Ratings - ------------------------- [pie chart] AAA 57.8% AA 15.6% A 20.6% NR 6.0% (non-rated) (Based on Total Long-Tern Investments) Quality ratings reflect the financial strength of the issuer. They are assigned by independent rating services such as Moody's Investors Service and Standard & Poor's. Non-rated bonds have been determined to be of appropriate quality for the portfolio by Ranson Capital Corporation, the investment advisor. Key Statistics - -------------- 7-31-96 NAV (share value) $12.14 1-31-97 NAV $12.30 Average Maturity 19.4 yrs. Average Duration 6.3 yrs. Number of Issues 133 Total Net Assets $130,903,480 Lipper Ranking - -------------- 1 yr. 5 yr. Since Inception - ----------------------------------- #8 #8 N/A - ----------------------------------- Lipper Analytical Services is an independent mutual fund ranking service. Rankings are based on average annual total returns for the periods ending 1-31-97 for funds in the "Other States Municipal Debt Funds" category. The 1 yr. And 5 yr. Rankings are out of a total of 63 and 11 funds, respectively. Average Annual Total Returns - ---------------------------- For periods ending January 31, 1997 - ----------------------------------- Average Annual Total Returns - ----------------------------------- 1 yr. 5 yr. Since Inception - ----------------------------------- 3.86%* 6.74%* 7.18%* - ----------------------------------- *The 1 yr., 5 yr., and Since Inception returns do not include the effect of the 4.25% maximum Sales Charge. They would have been (0.55%), 5.82%, and 6.44% respectively, if they had. Returns are historical and are not a guarantee of future results. The Fund's share price, yields and total returns will vary, so that shares, when redeemed, may be worth more or less than their original cost. Portfolio Market Sectors - ------------------------ [pie chart] Insured 50.7% Housing 15.1% Healthcare 10.1% Utilities 7.1% Other 4.2% Gen. Obligation 3.9% Education 3.9% Transportation 2.7% Real Estate 2.3% (As a % of Net Assets) Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes. Portfolio Manager's Comments - ---------------------------- Moderate economic growth and low inflation in 1996 led to a good year for The Kansas Municipal Fund. This was achieved by investing primarily in high quality, double tax-exempt Kansas municipal bonds with areas of concentration in healthcare, housing, and utility bond issues. Looking forward in 1997, we expect the U.S. Economy will continue its expansion, with real Gross Domestic Product (GDP) growing slightly stronger than in 1996. This could lead to slightly higher inflation as is evident in wages, as well as in consumer and industrial materaial prices. The higher-than-expected growth and inflation should prompt the Federal Reserve to raise rates sometime in 1997. However, we think the increases will be gradual enough to prevent a major market decline, although some volatility is to be expected. With this in mind, our efforts will be to continue to provide a high level of tax-free income, consistent with preservation of capital.
Schedule of Investments January 31, 1997 (Unaudited) Name of Issuer Ratings Percentages represent the market value ---------------- of each investment category to net assets Std. & Coupon Principal Market Moody's Poor's Rate Maturity Amount Value - -------------------------------------------------------------------------------------------------------------------- KANSAS MUNICIPAL BONDS (97.6%) GENERAL OBLIGATION (3.9%) Johnson Co., KS Int. Imp. & Rev. Aa-2 AA 6.125% 09/01/12 $ 2,410,000 $ 2,538,164 Park City, KS G.O. Ref. & Sewer NR NR 5.500 12/01/13 275,000 269,090 Shawnee, KS G.O. Int. Imp. A-1 NR 5.800 12/01/05 485,000 515,880 Shawnee, KS G.O. Int. Imp. A-1 NR 5.850 12/01/06 235,000 254,058 Topeka, KS G.O. Aa-2 NR 5.650 08/15/11 500,000 513,395 Wyandotte Co., KS USD #203 (Piper) G.O. Ref. Imp. NR NR 6.600 09/01/13 1,000,000 1,074,100 ------------ $ 5,164,687 ------------ HOUSING (15.1%) Ford Co., KS Single Family Mtg. Rev. Ref. A-1 NR 7.900% 08/01/10 $ 895,000 $ 940,994 Hutchinson, KS Single Family Mtg. Rev. Ref. A-1 NR 6.500 12/01/09 370,000 379,294 Hutchinson, KS Single Family Mtg. Rev. Ref. A-1 NR 8.875 12/01/12 3,120,000 3,270,634 Johnson Co., KS Single Family Mtg. Rev. A-1 NR 7.100 05/01/12 1,450,000 1,514,887 Kansas City, KS GNMA Coll. Mtg. Rev. SFMR NR AAA 7.350 12/01/23 745,000 763,141 Kansas City, KS GNMA Coll. Mtg. Rev. Hsg. Aaa NR 5.900 11/01/27 2,105,000 2,075,383 KS Dev. Finance Auth. (Martin Creek) Hsg. Dev. Rev. Aa-2 NR 6.600 08/01/34 1,900,000 1,915,865 KS Dev. Finance Auth. (Martin Creek) Hsg. Dev. Rev. Aa-2 NR 6.500 08/01/24 750,000 751,027 KS Dev. Finance Auth. Multi-Family Hsg. Rev. NR AAA 6.000 12/01/21 1,375,000 1,378,905 Labette Co., KS Single Family Mtg. Rev. Ref. A-1 NR 8.400 12/01/11 600,000 631,740 Lawrence, KS (Brandon Woods) Multi-Family Hsg. Dev. Rev. Ref. NR AAA 6.625 04/01/12 2,000,000 2,036,820 Reno Co., KS Single Family Mtg. Rev. Ref. Aaa NR 8.700 09/01/11 385,000 405,690 Saline Co., KS Single Family Mtg. Rev. Ref. A-1 NR 9.500 10/01/11 140,000 146,889 Seward Co., KS Single Family Mtg. Rev. NR AA- 7.375 12/01/09 480,000 489,638 Seward Co., KS Single Family Mtg. Rev. Ref. A-1 NR 8.000 05/01/11 525,000 553,061 Wichita, KS Multi-Family Hsg. Rev. NR A 5.850 11/01/25 1,000,000 992,970 Wichita, KS Single Family Mtg. Rev. Ref. A-1 NR 7.100 09/01/09 1,460,000 1,516,648 ------------ $ 19,763,586 ------------ INSURED/GUARANTEED (50.7%) *Allen Co., KS USD #258 (Humboldt) G.O. School Bldg. AMBAC Insured Aaa AAA 7.000% 09/01/09 $ 630,000 $ 722,440 *Burlington, KS Gas and Electric PCR MBIA Insured Aaa AAA 7.000 06/01/31 4,000,000 4,361,080 Butler Co., KS USD #402 (Augusta) G.O. Ref. CGIC Insured Aaa AAA 5.250 10/01/12 2,000,000 1,980,160 Butler Co., KS USD #394 (Rose Hill) G.O. Ref. & AMBAC Insured Aaa AAA 5.375 09/01/13 1,935,000 1,937,399 Garnett, KS Utility Ref. & Imp. Rev. MBIA Insured Aaa AAA 6.000 10/01/17 500,000 520,920 Johnson Co., KS USD #232 (DeSoto) G.O. School Bldg CGIC Insured Aaa AAA 6.000 03/01/12 500,000 524,030 Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 5.625 09/01/14 650,000 659,828 Kansas City, KS Comm. College Rev. MBIA Insured Aaa AAA 5.000 05/15/16 1,150,000 1,086,911 Kansas City, KS (Rainbow Towers) Multi- Family Hsg. FHA Gtd. NR AAA 6.600 07/01/14 250,000 253,583 Kansas City/Leavenworth Co./Lenexa, KS GNMA Coll. Mtg. Rev. GNMA Gtd. NR AAA 8.400 05/01/15 215,000 225,410 Kansas City/Leavenworth Co./Lenexa, KS GNMA Coll. Mtg. Rev. GNMA Gtd. NR AAA 7.850 11/01/10 620,000 654,832 Kansas City/Leavenworth Co./Lenexa, KS GNMA Coll. Mtg. Rev. GNMA Gtd. NR AAA 8.000 11/01/20 155,000 164,342 KS Dev. Finance Auth. (Sec. 8 Asstd. Proj.) Hsg. Dev. Rev. Ref. MBIA Insured Aaa AAA 6.000 07/01/12 200,000 202,412 Kansas City, KS Utility System Ref. & Imp. AMBAC Insured Aaa AAA 6.300 09/01/16 2,000,000 2,141,380 Kansas City, KS Utility System Ref. & Imp. FGIC Insured Aaa AAA 6.375 09/01/23 8,750,000 9,308,775 KS Dev. Finance Auth. (Sect. 8) Hsg. Dev. Rev. Ref. MBIA Insured Aaa AAA 6.300 07/01/12 285,000 289,785 KS Dev. Finance Auth. (Sect. 8) Hsg. Dev. Rev. Ref. MBIA Insured Aaa AAA 6.400 01/01/24 770,000 774,451 KS Dev. Finance Auth. (Brd. of Regents) AMBAC Insured Aaa AAA 5.875 06/01/21 750,000 759,825 KS Dev. Finance Auth. (El Dorado/ Larned) Ref. Rev. MBIA Insured Aaa AAA 6.000 02/01/12 2,000,000 2,111,680 KS Dev. Finance Auth. (Stormont Vail) Hlth. Care Rev. MBIA Insured Aaa AAA 5.800 11/15/21 680,000 680,116 KS Dev. Finance Auth. (St. Luke's/Shawnee Mission) Rev. MBIA Insd. Aaa AAA 5.375 11/15/26 1,500,000 1,436,985 KS St. Dev. Finance Auth. (Hays Med. Ctr.) Hlth. Facs. Rev. MBIA Insd. Aaa NR 5.500 11/15/22 750,000 739,972 KS Turnpike Authority Rev. AMBAC Insured Aaa AAA 5.400 09/01/09 260,000 265,002 KS Turnpike Authority Rev. AMBAC Insured Aaa AAA 5.250 09/01/13 1,020,000 1,009,586 KS Turnpike Authority Rev. AMBAC Insured Aaa AAA 5.250 09/01/17 950,000 926,554 KS Turnpike Authority Rev. FGIC Insured Aaa AAA 5.550 09/01/17 1,000,000 994,980 Leavenworth Co., KS (Lansing) USD #469 G.O. AMBAC Insured Aaa AAA 5.750 09/01/14 875,000 889,578 Leavenworth Co., KS (Lansing) USD #469 G.O. CGIC Insured Aaa AAA 5.750 09/01/15 930,000 942,778 Lenexa, KS (Barrington Park) Multi-Family Hsg. Rev. ASSET GUAR. Insured Aaa AAA 6.050 02/01/06 350,000 358,526 Lenexa, KS (Barrington Park) Multi-Family Hsg. Rev. ASSET GUAR. Insured Aaa AAA 6.450 02/01/18 2,500,000 2,529,475 McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured Aaa AAA 5.750 09/01/13 350,000 361,613 Miami Co., KS Water Dist. #2 Ref. Rev. ASSET GUAR. Insured Aaa AA 6.100 12/01/06 255,000 266,506 Miami Co., KS Water Dist. #2 Ref. Rev. ASSET GUAR. Insured Aaa AA 6.150 06/01/07 245,000 255,662 Olathe, KS Health Care Ref. AMBAC Insured Aaa AAA 6.000 05/01/19 900,000 905,535 Olathe, KS Health Care Ref. AMBAC Insured Aaa AAA 6.000 09/01/11 1,000,000 1,026,040 Olathe, KS Health Care Ref. AMBAC Insured Aaa AAA 5.875 09/01/16 2,000,000 2,048,980 Olathe, KS (Medical Center) Hlth. Care AMBAC Insured Aaa AAA 5.500 09/01/18 730,000 721,284 Olathe, KS (Medical Center) Hlth. Care AMBAC Insured Aaa AAA 5.500 09/01/24 740,000 721,922 Olathe/Labette Co., KS GNMA Coll. Mtg. Rev. MBIA Insured Aaa AAA 8.000 11/01/20 200,000 208,626 Olathe/Labette Co., KS GNMA Coll. Mtg. Rev. GNMA Gtd. NR AAA 7.750 09/01/22 160,000 167,067 Pratt, KS Electric Utility Sys. Ref. & Imp. Rev. AMBAC Insured Aaa AAA 6.600 11/01/07 1,000,000 1,113,500 Salina, KS (Asbury-Saline Regl. Med. Ctr.) Rev. Ref. AMBAC Insured Aaa AAA 5.300 10/01/13 750,000 737,842 Salina, KS Comb. Water & Sewage Sys. Imp. Rev. MBIA Insured Aaa AAA 6.250 10/01/12 500,000 531,750 Salina, KS Comb. Water & Sewage Sys. Ref. Rev. MBIA Insured Aaa AAA 5.250 09/01/12 500,000 489,660 Sedgwick/Shawnee Cos., KS Single Family Mtg. Ref. Rev. GNMA Gtd. Aaa NR 7.750 11/01/24 540,000 557,415 Sedgwick/Shawnee Cos., KS Single Family Mtg. GNMA Gtd. Aaa NR 8.050 05/01/24 375,000 389,486 Sedgwick/Shawnee Cos., KS Single Family Mtg. GNMA Gtd. Aaa NR 7.800 11/01/24 460,000 477,512 Sedgwick/Shawnee Cos., KS Coll. Mtg. Rev. GNMA Gtd. NR AAA 8.250 11/01/20 350,000 365,162 Sedgwick/Shawnee Cos., KS Coll. Mtg. Loan GNMA Gtd. NR AAA 7.875 04/01/11 380,000 398,339 Sedgwick/Shawnee Cos., KS Coll. Mtg. Rev. MBIA Gtd. Aaa AAA 7.875 12/01/21 285,000 294,719 Sedgwick/Shawnee Cos., KS Coll. Mtg. Loan GNMA Gtd. Aaa NR 7.000 12/01/98 130,000 129,912 Sedgwick Co., KS USD #260 (Derby) G.O. AMBAC Insured Aaa AAA 6.000 10/01/10 500,000 527,525 Sedgwick Co., KS (Maize) USD #266 G.O. FGIC Insured Aaa AAA 5.500 09/01/10 465,000 476,197 Sedgwick Co., KS (Maize) USD #266 G.O. FGIC Insured Aaa AAA 5.250 09/01/13 2,805,000 2,788,563 Seward Co., KS G.O. Aaa AAA 6.000 08/15/13 750,000 790,342 Shawnee Co., KS (Meninger) Health Care Rev. CGIC Insured Aaa AAA 5.000 08/15/16 1,400,000 1,309,546 Shawnee Co., KS (Auburn-Washburn) USD #437 G.O. FGIC Insured Aaa AAA 6.600 09/01/09 500,000 544,640 Shawnee Co., KS (Auburn-Washburn) G.O. AMBAC Insured Aaa AAA 5.250 09/01/11 250,000 250,660 Shawnee Co., KS (Auburn-Washburn) G.O. AMBAC Insured Aaa AAA 5.250 09/01/12 350,000 348,947 Shawnee Co., KS (Auburn-Washburn) G.O. AMBAC Insured Aaa AAA 5.250 09/01/13 500,000 497,070 Sumner Co., KS USD #357 (Belle Plaine) G.O. Ref. Imp. AMBAC Insured Aaa AAA 5.550 09/01/13 625,000 631,519 Wellington, KS Elect. Wtrwks. & Sew. Util. Sys. Rev. AMBAC Insured Aaa AAA 6.250 05/01/12 1,250,000 1,330,275 Wichita, KS Airport Auth. Facilities Ref. Rev. ASSET GUAR. Insured Aaa AAA 7.000 03/01/05 440,000 461,674 Wichita, KS (St. Francis Regl. Medl. Ctr.) Facs. Imp. MBIA Insured Aaa AAA 6.250 10/01/10 250,000 272,013 Wichita, KS (St. Francis Regl. Medl. Ctr.) Facs. Imp. Ref. MBIA Insured Aaa AAA 6.250 10/01/10 1,000,000 1,088,050 Wichita, KS Public Bldg. Comm. Rev. WSU AMBAC Insured Aaa AAA 5.750 02/01/17 350,000 354,574 Wichita, KS Water & Sewer Utility Ref. & Imp. FGIC Insured Aaa AAA 6.000 10/01/12 1,000,000 1,048,360 Wichita, KS Multi-Family Hsg. Rev. Ref. GNMA Gtd. Aaa NR 6.125 08/20/28 1,900,000 1,909,177 Wyandotte Co., KS G.O. Ref. & Imp. FGIC Insured Aaa AAA 7.000 09/01/05 125,000 132,681 ------------ $ 66,383,140 ------------ LEISURE & RECREATION (0.6%) Blue Valley, KS Recreation Commission COP's NR NR 6.600% 04/01/07 $ 245,000 $ 264,666 Johnson Co., KS Park & Rec. Rev. Ref. NR NR 7.200 01/01/09 500,000 529,325 ------------ $ 793,991 ------------ MEDICAL CARE (10.1%) Kansas City, KS Hospital Rev. (Prov. -St. Margaret) Hlth. Center NR A- 8.100% 12/01/04 $ 574,000 $ 585,807 Kansas City, KS (St. Margaret Hlth. Ctr.) Hosp. Rev. Aa-2 NR 5.900 08/01/05 300,000 316,911 Lawrence, KS (Memorial Hosp.) Hosp. Rev. A-2 NR 6.000 07/01/09 2,000,000 2,072,420 Lawrence, KS (Memorial Hosp.) Hosp. Rev. A-2 NR 6.200 07/01/14 1,200,000 1,243,956 Lawrence, KS (Memorial Hosp.) Rev. A-2 NR 6.200 07/01/19 1,725,000 1,763,950 Merriam, KS (Shawnee Mission Medical Ctr.) Rev. NR A- 7.250 09/01/21 1,000,000 1,078,970 Wichita, KS (St. Francis Hosp. & Sch.) Hosp. Rev. ESCROWED NR AAA 6.750 10/01/07 595,000 617,045 Wichita KS (CSJ Hlth. Sys.) Rev. NR A- 7.000 11/15/08 640,000 694,458 Wichita KS (CSJ Hlth. Sys.) Rev. NR A- 7.200 10/01/15 2,225,000 2,395,880 Wichita KS (CSJ Hlth. Sys.) Rev. NR A- 7.000 11/15/18 2,350,000 2,507,615 ------------ $ 13,277,012 ------------ POLLUTION CONTROL (1.2%) KS Dev. Finance Auth. (KS Water Fund) PCR Aa-2 AA+ 6.000% 11/01/14 $ 500,000 $ 518,960 KS Dev. Finance Auth. (KS Water Fund) PCR Aa-1 AA+ 5.600 05/01/17 1,000,000 1,008,620 ------------ $ 1,527,580 ------------ REAL ESTATE (2.3%) Wichita, KS (Cessna Citation Svc. Ctr.) Airport Rev. NR AA+ 7.250% 05/15/30 $ 100,000 $ 100,866 Hays, KS Sales Tax Rev. NR NR 6.875 09/01/12 500,000 528,335 Hiawatha, KS (Wal-Mart Stores) Industrial Rev. Ref. NR AA 6.750 01/01/06 595,000 630,980 KS Dev. Fin. Auth. (KS Hwy. Patrol Training Fac.) Rev. NR NR 6.300 12/01/05 450,000 482,395 Wichita, KS Public Bldg. Commission Real Estate Rev. A-2 A+ 5.500 08/01/14 1,215,000 1,207,552 ------------ $ 2,950,128 ------------ TRANSPORTATION (2.7%) KS Dept. of Transportation Hwy. Rev. Aa-2 AA 6.000% 09/01/09 $ 150,000 $ 159,696 KS Dept. of Transportation Hwy. Rev. Aa-2 AA 6.000 09/01/12 2,200,000 2,321,550 KS Dept. of Transportation Hwy. Rev. Aa-2 AA 5.375 03/01/13 1,000,000 998,280 ------------ $ 3,479,526 ------------ SCHOOL (3.9%) Cowley Co., KS Community College COP's A-2 NR 7.000% 03/01/12 $ 900,000 $ 966,555 Douglas Co., KS USD # 497 (Lawrence) G.O. Aa-2 NR 6.000 09/01/15 1,000,000 1,054,170 Gray Co., KS (Cimmarron) USD #102 G.O. NR NR 6.800 09/01/15 500,000 547,405 Johnson Co., KS (Shawnee Mission) USD #512 G.O. Aa-1 AA 5.300 10/01/14 900,000 884,385 KS Dev. Fin. Auth. (KS Brd. Rgts.- Lewis Field Stadium) NR NR 6.000 04/01/08 500,000 518,725 KS Dev. Fin. Auth. (KS Brd. Rgts.) Energy Cons. Rev. A-2 A+ 6.350 03/01/09 300,000 316,995 Lyon Co., KS USD #253 G.O. Ref. A-2 NR 5.600 10/01/10 800,000 817,320 ------------ $ 5,105,555 ------------ UTILITIES (7.1%) Gardner, KS Electric Utility Rev. NR NR 7.000% 11/01/09 $ 1,000,000 $ 1,092,180 Atchison, KS Sewer System Rev. NR NR 6.700 09/01/12 115,000 123,454 Atchison, KS Sewer System Rev. NR NR 6.700 09/01/13 125,000 134,334 Johnson Co., KS Water Dist. #1 Water Rev. Ref. Aa-2 AA+ 6.500 12/01/13 500,000 539,675 Johnson Co., KS Water Dist. #1 Rev. Aa-2 AA+ 6.250 12/01/11 700,000 747,306 Johnson Co., KS Water Dist. #1 Rev. Ref. Aa-2 AA+ 5.300 12/01/12 3,000,000 2,960,460 Johnson Co., KS Water Dist. #1 Rev. Ref. Aa-2 AA+ 5.250 12/01/15 1,000,000 967,200 Johnson Co., KS Water Dist. #1 Water Rev. Aa-2 AA+ 5.750 12/01/19 500,000 501,900 Miami Co., KS Water Dist. #2 Ref. Rev. Aaa AA 6.100 06/01/06 230,000 239,207 Park City, KS Sewer System Rev. NR NR 5.500 12/01/09 1,000,000 1,001,570 Sabetha, KS G.O. Ref. & Water NR NR 5.500 12/01/13 400,000 395,668 Scott City, KS G.O. Water System Ref. NR NR 6.100 09/01/14 625,000 652,544 ------------ $ 9,355,498 ------------ TOTAL KANSAS MUNICIPAL BONDS (COST: $124,003,776) $127,800,703 SHORT TERM SECURITIES (1.5%) Federated Tax Free Trust (COST: $1,998,618) 1,998,618 ------------ TOTAL INVESTMENTS IN SECURITIES (Cost: $126,002,394 ) $129,799,321 ============
*Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997(Unaudited) Statement of Assets and Liabilities January 31, 1997 (Unaudited) - ----------------------------------------------------------------
Assets Investment in securities, at value (cost: $126,002,394) $129,799,321 Cash 312,183 Accrued dividends receivable 2,673 Accrued interest receivable 2,451,732 Receivable for fund shares sold 27,928 ------------ Total Assets $132,593,837 ------------ Liabilities Dividends payable $ 541,014 Accrued expenses 104,825 Security purchases payable 1,005,133 Payable for fund shares redeemed 38,135 Variation margin on futures 1,250 ------------ Total Liabilities $ 1,690,357 ------------ Net Assets $130,903,480 ============ Net asset value per share, 10,644,305 shares outstanding $ 12.30 ============ Statement of Operations for the six months ended January 31, 1997(Unaudited) - ----------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 3,874,814 Dividend 37,420 ------------ Total Investment Income $ 3,912,234 ------------ EXPENSES Investment advisory fees $ 328,871 Distribution fees (12b-1) 164,435 Custodian fees 13,652 Transfer agent 67,573 Accounting service fees 39,226 Audit and legal fees 10,554 Directors fees 4,386 Printing and postage 9,645 License, fees, and registrations 2,836 ------------ Total Expenses $ 641,178 Less expenses waived or absorbed by the Fund's manager 44,320 ------------ Total Net Expenses $ 596,858 ------------ NET INVESTMENT INCOME $ 3,315,376 ------------ REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES Net realized gain (loss) from: Investments $ (58,155) Futures (280,395) Net change in unrealized appreciation (depreciation) of: Investments 2,076,856 Futures (1,250) ------------ Net Realized And Unrealized Gain (Loss) On Investments $ 1,737,056 ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 5,052,432 ============
The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 Statement of Changes in Net Assets For the six months ended January 31, 1997 and year ended July 31, 1996 - ----------------------------------------------------------------------
For The Six Months For The Year Ended January 31, Ended 1997 (Unaudited) July 31, 1996 ----------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 3,315,376 $ 6,881,050 Net realized gain (loss) on investment and futures transactions (338,550) 905,123 Net change in unrealized appreciation (depreciation) on investments and futures 2,075,606 (215,174) ----------------------------------- Net Increase (Decrease) in Net Assets Resulting From Operations $ 5,052,432 $ 7,570,999 ----------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income $ (3,315,376) $ (6,881,050) Distributions from net realized gain on investment transactions 0 0 ----------------------------------- Total Dividends and Distributions $ (3,315,376) $ (6,881,050) ----------------------------------- CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares $ 3,319,278 $ 11,224,770 Proceeds from reinvested dividends 2,282,419 4,686,205 Cost of shares redeemed (8,784,224) (14,343,258) ----------------------------------- Net Increase (Decrease) in Net Assets Resulting From Capital Share Transactions $ (3,182,527) $ 1,567,717 ----------------------------------- TOTAL INCREASE (DECREASE) IN NET ASSETS $ (1,445,471) $ 2,257,666 NET ASSETS, BEGINNING OF PERIOD 132,348,951 130,091,285 ----------------------------------- NET ASSETS, END OF PERIOD $ 130,903,480 $ 132,348,951 ===================================
The accompanying notes are an integral part of these financial statements. Notes to Financial Statements January 31, 1997 (Unaudited) Note 1. ORGANIZATION Business Operations - The Kansas Municipal Fund (the "Fund") is an investment portfolio of Ranson Managed Portfolios (the "Trust") registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust may offer multiple portfolios; currently four portfolios are offered. Ranson Managed Portfolios is an unincorporated business trust organized under Massachusetts law on August 10, 1990. The Fund had no operations from that date to November 15, 1990, other than matters relating to organization and registration. On November 15, 1990, the Fund commenced its Public Offering of capital shares to the public. The investment objective of the Fund is to provide its shareholders with as high a level of current income exempt from both federal and Kansas income tax as is consistent with preservation of capital. The Fund will seek to achieve this objective by investing primarily in a portfolio of Kansas municipal securities. Shares of the Fund are offered at net asset value plus a maximum sales charge of 4.25% of the offering price. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment security valuation - Investments in securities traded on national securities exchanges are valued at the last reported sales price at the close of each business day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the portfolio management team. The Fund follows industry practice and records security transactions on the trade date. The Fund concentrates its investments in a single state. This concentration may result in the Fund investing a relatively high percentage of its assets in a limited number of issuers. Federal and state income taxes - The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies, and to distribute all of its net investment income and any net realized gain on investments, to its shareholders. Therefore, no provision for income taxes is required. The Fund has available at January 31, 1997, a net capital loss carryforward totaling $2,058,350, which may be used to offset capital gains realized during subsequent years through July 31, 2004. Distributions to shareholders - Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Investment income - Dividend income is recognized on the ex-dividend date and interest income is recognized daily on an accrual basis. Premiums and discounts on securities purchased are amortized using the effective interest method over the life of the respective securities, unless callable, in which case they are amortized to the earliest call date. Futures contracts - The Fund may purchase and sell financial futures contracts to hedge against changes in the values of tax-exempt municipal securities the Fund owns or expects to purchase. A futures contract is an agreement between two parties to buy or sell units of a particular index or a certain amount of U.S. Government or municipal securities at a set price on a future date. Upon entering into a futures contract, the Fund is required to deposit with a broker an amount of cash or securities equal to the minimum "initial margin" requirement of the futures exchange on which the contract is traded. Subsequent payments ("variation margin") are made or received by the Fund, dependent on the fluctuations in the value of the underlying index. Daily fluctuations in value are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize, for book purposes, a gain or loss equal to the difference between the value of the futures contracts sold and the futures contracts to buy. Unrealized appreciation (depreciation) related to open futures contracts is required to be treated as realized gain (loss) for Federal income tax purposes. Certain risks may arise upon entering into futures contracts. These risks may include changes in the value of the futures contracts that may not directly correlate with changes in the value of the underlying securities. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3. CAPITAL SHARE TRANSACTIONS As of January 31, 1997, there were unlimited shares of no par authorized; 10,644,305 and 10,905,053 shares were outstanding at January 31, 1997 and July 31, 1996, respectively. Transactions in capital shares were as follows:
Shares Amount ---------------------------------------------------------------------- For The For The For The For The Six Months Ended Year Ended Six Months Ended Year Ended January 31, 1997 July 31, 1996 January 31, 1997 July 31, 1996 ---------------------------------------------------------------------- Shares sold 272,333 918,984 $ 3,319,278 $ 11,224,770 Shares issued on reinvestment of dividends 187,364 383,410 2,282,419 4,686,205 Shares redeemed (720,445) (1,174,350) (8,784,224) (14,343,258) ---------------------------------------------------------------------- Net increase (260,748) 128,044 $ (3,182,527) $ 1,567,717 ======================================================================
Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES Ranson Capital Corporation, the Fund's investment adviser and underwriter, and ND Resources, Inc., the Fund's transfer and accounting services agent, are subsidiaries of ND Holdings, Inc., the Fund's sponsor. The Fund has engaged Ranson Capital Corporation, to provide investment advisory and management services to the Fund. The Investment Advisory Agreement provides for fees to be computed at an annual rate of 0.50% of the Fund's average daily net assets. The Fund has recognized $328,871 of investment advisory fees for the six months ended January 31, 1997. The Fund has a payable to Ranson Capital Corporation of $54,352 at January 31, 1997 for investment advisory fees. Certain officers and trustees of the Fund are also officers and directors of the investment adviser. The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25% of the average daily net assets of the Fund to Ranson Capital Corporation (Capital), its principal underwriter, for expenses incurred in the distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled to reimbursement each month for its actual expenses incurred in the distribution and promotion of the Fund's shares, including the printing of prospectuses and reports used for sales purposes, expenses of preparation and printing of sales literature and other such distribution related expenses, including any distribution or service fees paid to securities dealers who have executed a dealer sales agreement with Capital. Capital will be reimbursed at an annual rate not to exceed 0.25% of the average daily net assets of the Fund for the prior month. The Fund has recognized $164,435 of 12b-1 fee expenses for the six months ended January 31, 1997. The Fund has a payable to Ranson Capital Corporation of $27,176 at January 31, 1997 for 12b-1 fees. ND Resources, Inc., (the transfer agent), provides shareholder services for a monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11% of the Fund's net assets on the next $15 million, 0.10% of the Fund's net assets on the next $10 million, and 0.09% of the Fund's net assets in excess of $50 million. The Fund has recognized $67,573 of transfer agency fees for the six months ended January 31, 1997. ND Resources, Inc. also acts as the Fund's accounting services agent for a monthly fee equal to the sum of a fixed fee of $2,000, and a variable fee equal to 0.05% of the Fund's average daily net assets on an annual basis for the Fund's first $50 million and at a lower rate on the average daily net assets in excess of $50 million. The Fund has recognized $39,226 of accounting service fees for the six months ended January 31, 1997. Note 5. INVESTMENT SECURITY TRANSACTIONS Cost of purchases and proceeds from sale of investment securities (excluding short-term securities) aggregated $5,552,495 and $7,644,161, respectively, for the six months ended January 31, 1997. Note 6. INVESTMENT IN SECURITIES At January 31, 1997, the aggregate cost of securities for federal income tax purposes was $126,002,394, and the net unrealized appreciation of investments based on the cost was $3,796,927, which is comprised of $4,170,269 aggregate gross unrealized appreciation and $373,342 aggregate gross unrealized depreciation. Financial Highlights Selected per share data and ratios for the period indicated - --------------------------------------------------------------------------------
For the Six Months For the Year For the Year For the Year For the Year For the Year Ended January 31, 1997 Ended Ended Ended Ended Ended (Unaudited) July 31, 1996 July 31, 1995 July 31, 1994 July 31, 1993 July 31, 1992 ------------------------------------------------------------------------------------------------ NET ASSET VALUE, BEGINNING OF PERIOD $ 12.14 $ 12.07 $ 12.00 $ 12.67 $ 12.22 $ 11.54 ------------------------------------------------------------------------------------------------ Income from Investment Operations: Net Investment Income $ .31 $ .69 $ .65 $ .66 $ .69 $ .72 Net realized and unrealized gain (loss) on investments .16 .07 .07 (.53) .50 .69 ------------------------------------------------------------------------------------------------ Total From Investment Operations $ .47 $ .76 $ .72 $ .13 $ 1.19 $ 1.41 ------------------------------------------------------------------------------------------------ Less Distributions: Dividends from net investment income $ (.31) $ (.69) $ (.65) $ (.66) $ (.69) $ (.72) Distributions from net capital gains .00 .00 .00 (.14) (.05) (.01) ------------------------------------------------------------------------------------------------ Total Distributions $ (.31) $ (.69) $ (.65) $ (.80) $ (.74) $ (.73) ------------------------------------------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 12.30 $ 12.14 $ 12.07 $ 12.00 $ 12.67 $ 12.22 ================================================================================================ Total Return 7.80%(A)(B) 5.90%(A) 6.23%(A) 0.91%(A) 10.08%(A) 13.31%(A) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $130,903 $132,349 $130,091 $127,337 $100,207 $52,010 Ratio of net expenses (after expense assumption) to average net assets 0.90%(B)(C) 0.85%(C) 0.82%(C) 0.70%(C) 0.75%(C) 0.70% (C) Ratio of net investment income to average net assets 5.04%(B) 5.18% 5.46% 5.26% 5.53% 6.00% Portfolio turnover rate 4.32% 20.14% 57.00% 55.00% 62.00% 51.00%
(A) Excludes maximum sales charge of 4.25%. (B) Ratio was annualized. (C) During the periods indicated above, ND Holdings, Inc. or Ranson Capital Corporation assumed expenses of $44,320, $212,056, $295,875, $419,129, $282,407, and $231,617, respectively. If the expenses had not been assumed, the annualized ratios of total expenses to average net assets would have been 0.98%, 1.01%, 1.06%, 1.06%, 1.13%, and 1.25%, respectively. Dear Shareholder: We are pleased to submit the semi-annual report for The Kansas Insured Intermediate Fund. Included with this report is a list of portfolio holdings, along with the financial statements for the six months ended January 31, 1997. Management Discussion and Analysis: Moderate economic growth and low inflation during the six month period allowed municipal bond prices to advance generally until later in the period. Then bond values began to move lower as concerns about possible Federal Reserve monetary policy tightening settled into the market. The adviser employed a protective hedge by using U.S. Treasury Bond futures in anticipation of lower valuations. This had the effect of stabilizing share price from erosion during periods when interest rates were rising and tempering share price increases when interest rates decreased. The Kansas Insured Intermediate Fund turned in steady performance for the six month period. Net asset value per share was $12.19 at the beginning of the period and increased to $12.28 by January 31, 1997. The adviser continues to invest primarily in insured Kansas tax-exempt bonds. More information on portfolio makeup and performance are included on the next page. Economic Outlook and Municipal Bond Overview: U.S. economic growth has continued at a moderate pace and inflation has not been excessive. As 1997 unfolds, we anticipate that the Federal Reserve will remain vigilant and may possibly move to curb inflation by tightening credit. Tax-exempt bonds should offer reasonable stability and liberal returns in the months ahead. We continue to be pleased with the performance of the Fund and would like to take this opportunity to thank you for your support and look forward to serving the shareholders of The Kansas Insured Intermediate Fund. Sincerely, Robert E. Walstad President THE KANSAS INSURED INTERMEDIATE FUND January 31, 1997 (Unaudited) The Kansas Insured Intermediate Fund ------------------------------------ Performance and Composition Portfolio Quality Ratings - ------------------------- [pie chart] AAA 100.0% INSURED (Based on Total Long-Term Investments) Key Statistics - -------------- 7-31-96 NAV (share value) $12.19 1-31-97 NAV $12.28 Average Maturity 8.1 yrs. Average Duration 6.0 yrs. Number of Issues 68 Total Net Assets $27,019,132 Lipper Ranking - -------------- 1 yr. 5 yr. Since Inception - ----------------------------------- #12 N/A N/A - ----------------------------------- Lipper Analytical Services is an independent mutual fund ranking service. Rankings are based on average annual total returns for the periods ending 1-31-97 for funds in the "Other States Municipal Debt Funds" category. The 1 yr. And 5 yr. Rankings are out of a total of 63 and 11 funds, respectively. Average Annual Total Returns - ---------------------------- 1 yr. 5 yr. Since Inception - ----------------------------------- 3.66%* N/A 5.84%* - ----------------------------------- *The 1 yr., 5 yr., and Since Inception returns do not include the effect of the 4.25% maximum Sales Charge. They would have been 0.80% and 5.14% respectively, if they had. Returns are historical and are not a guarantee of future results. The Fund's share price, yields and total returns will vary, so that shares, when redeemed, may be worth more or less than their original cost. Portfolio Market Sectors - ------------------------ [pie chart] Insured 97.6% Other 2.4% (As a % of Net Assets) Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes. Portfolio Manager's Comments - ---------------------------- Moderate economic growth and low inflation in 1996 led to a good year for The Kansas Insured Intermediate Fund. This was achieved by investing primarily in high quality, double tax-exempt Kansas municipal bonds with areas of concentration in healthcare, general obligation, and utility bond issues. Looking forward in 1997, we expect the U.S. Economy will continue its expansion, with real Gross Domestic Product (GDP) growing slightly stronger than in 1996. This could lead to slightly higher inflation as is evident in wages, as well as in consumer and industrial materaial prices. The higher-than-expected growth and inflation should prompt the Federal Reserve to raise rates sometime in 1997. However, we think the increases will be gradual enough to prevent a major market decline, although some volatility is to be expected. With this in mind, our efforts will be to continue to provide a high level of double tax-free income, consistent with preservation of capital.
Schedule of Investments January 31, 1997 (Unaudited) Name of Issueer Ratings Percentages represent the market value ------------------ of each investment category to total assets Std. & Coupon Principal Market Moody's Poor's Rate Maturity Amount Value - ----------------------------------------------------------------------------------------------------------------------------- KANSAS MUNICIPAL BONDS (97.6%) Anderson Co., KS (Garnett) USD #365 G.O. AMBAC Insured Aaa AAA 5.000% 09/01/04 $ 200,000 $ 203,918 Anderson Co., KS (Garnett) USD #365 G.O. AMBAC Insured Aaa AAA 5.200 03/01/05 210,000 216,638 Anderson Co., KS (Garnett) USD #365 G.O. AMBAC Insured Aaa AAA 5.200 09/01/05 210,000 217,648 Butler Co., KS (Augusta) USD #402 G.O. AMBAC Insured Aaa AAA 5.400 10/01/06 200,000 207,504 Chanute, KS Electric Light, Water & Gas Sys. Ref. Rev. MBIA Insured Aaa AAA 5.875 05/01/04 500,000 527,835 Crawford Co., KS G.O. MBIA Insured NR AAA 5.000 11/01/06 175,000 175,858 Derby, KS Sewer Utility System Rev. AMBAC Insured Aaa AAA 5.000 08/01/08 340,000 333,798 Douglas Co., KS USD #491 (Eudora) G.O. School Bldg. Ref. & Imp. AMBAC Insured Aaa AAA 7.750 03/01/01 190,000 211,880 *Douglas Co., KS USD #491 (Eudora) G.O. School Bldg. Ref. & Imp. AMBAC Insured Aaa AAA 7.750 03/01/03 255,000 295,012 *Douglas Co., KS (Lawrence) USD #497 G.O. FGIC Insured Aaa AAA 7.200 09/01/02 1,370,000 1,535,071 Franklin Co., KS G.O. FGIC Insured Aaa AAA 6.100 09/01/02 100,000 104,453 Garden City, KS Hlth. Care Rev. MBIA Insured Aaa AAA 4.900 11/15/07 400,000 393,032 Johnson/Miami Cos., KS USD #230 G.O. FGIC Insured Aaa AAA 5.250 12/01/04 500,000 516,430 Johnson/Miami Cos., KS (Spring Hill) G.O. FGIC Insured Aaa AAA 5.250 12/01/05 350,000 363,202 Johnson Co., KS USD #229 (Blue Valley) FGIC Insured Aaa AAA 5.400 10/01/04 1,000,000 1,034,570 Johnson Co., KS (DeSoto) USD #232 G.O. CGIC Insured Aaa AAA 5.400 03/01/03 100,000 103,991 Johnson Co., KS (Olathe) USD #491 G.O. AMBAC Insured Aaa AAA 5.450 09/01/02 100,000 105,500 Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 5.650 09/01/03 1,485,000 1,575,095 Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 5.950 09/01/05 400,000 429,288 Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured Aaa AAA 6.150 03/01/07 300,000 321,558 Kansas City, KS (Srs. of Prov.-St. Margaret Hlth. Ctr.) AMBAC Insured Aaa AAA 5.700 08/01/03 250,000 261,438 KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev. MBIA Insured Aaa AAA 5.700 11/15/08 450,000 456,669 Kansas City, KS Special Obligation ESCROWED Aaa AAA 6.000 02/15/03 200,000 212,618 KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA Insured Aaa AAA 5.500 10/01/05 250,000 261,125 KS Devl. Finance Auth. Multi-Family Hsg. Rev. NR AAA 5.700 12/01/09 325,000 326,082 KS Devl. Finance Auth. (St. Luke's/Shawnee Mission) MBIA Insured Aaa AAA 4.875 11/15/07 400,000 393,496 KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured Aaa AAA 5.200 11/15/08 375,000 375,113 KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured Aaa AAA 5.300 11/15/09 375,000 374,647 Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. MBIA Insured Aaa AAA 5.200 11/15/02 160,000 164,579 Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. MBIA Insured Aaa AAA 5.300 11/15/03 170,000 175,068 Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev. MBIA Insured Aaa AAA 5.400 11/15/04 155,000 160,569 Lenexa, KS (Barrington Park) Multi-Family Hsg. Rev. Ref. ASSET GUAR. Insured Aaa AAA 5.875 02/01/04 500,000 512,515 Lenexa, KS (Barrington Park) Multi-Family Hsg. Rev. Ref. ASSET GUAR. Insured Aaa AAA 5.950 02/01/05 250,000 258,505 Linn Co., KS (Prairie View) USD #362 G.O. ASSET GUAR. Insured Aaa AA 5.500 11/01/09 500,000 506,425 McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured Aaa AAA 5.500 09/01/05 100,000 105,237 McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured Aaa AAA 5.700 09/01/06 400,000 424,816 Miami Co., KS Rural Water Dist. #2 Ref. Rev. ASSET GUAR. Insured Aaa AA 5.750 12/01/04 225,000 229,498 Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured Aaa AAA 5.200 05/01/01 140,000 143,469 Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured Aaa AAA 5.400 05/01/02 150,000 155,278 Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured Aaa AAA 5.500 05/01/03 110,000 114,435 Olathe, KS (Medical Center) Hlth. Facs. Rev. Ref. AMBAC Insured Aaa AAA 5.600 09/01/05 1,000,000 1,047,140 Reno Co., KS (Buhler) USD #313 G.O. FSA Insured Aaa AAA 4.700 09/01/06 260,000 259,366 Reno Co., KS (Buhler) USD #313 G.O. FSA Insured Aaa AAA 4.800 09/01/07 250,000 250,048 Salina, KS (Asbury-Salina Regl. Med. Ctr.) Hosp. Rev. Ref. AMBAC Insured Aaa AAA 5.000 10/01/04 850,000 858,916 Salina, KS (Asbury-Salina Regl. Med. Ctr.) Hosp. Rev. Ref. AMBAC Insured Aaa AAA 5.000 10/01/05 100,000 100,949 Sedgwick/Shawnee Cos., KS Coll. Single Family Mtg. GNMA Gtd. Aaa AAA 5.250 11/01/04 215,000 215,692 Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured Aaa AAA 5.500 09/01/05 300,000 314,847 Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured Aaa AAA 5.600 09/01/06 200,000 210,892 Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured Aaa AAA 5.850 11/01/06 290,000 309,906 Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured Aaa AAA 6.000 11/01/07 570,000 608,475 Seward Co., KS G.O. Hospital Ref. AMBAC Insured Aaa AAA 5.600 08/15/04 100,000 104,769 Seward Co., KS G.O. Hospital Ref. AMBAC Insured Aaa AAA 5.600 08/15/04 150,000 157,154 Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured Aaa AAA 6.700 09/01/00 415,000 446,901 Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured Aaa AAA 6.625 09/01/01 475,000 515,004 Shawnee Co., KS (Shawnee Heights) USD #450 G.O. CGIC Insured Aaa AAA 6.500 09/01/00 250,000 267,663 Shawnee Co., KS (Topeka) USD #501 G.O. FGIC Insured Aaa AAA 5.550 02/01/07 820,000 853,161 Sumner Co., KS (Belle Plaine) USD #357 G.O. AMBAC Insured Aaa AAA 6.250 09/01/02 230,000 248,152 Sumner Co., KS (Belle Plaine) USD #357 G.O. AMBAC Insured Aaa AAA 6.250 09/01/03 265,000 286,945 Wichita, KS Airport Auth. Facs Ref. Rev. ASSET GUAR. Insured Aaa AAA 7.000 03/01/05 100,000 104,926 Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs. Imp. & Ref. Rev. MBIA Insured Aaa AAA 5.625 10/01/00 405,000 422,293 Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs. Imp. & Ref. MBIA Insured Aaa AAA 6.000 10/01/03 250,000 264,250 Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs. Imp. & Ref. MBIA Insured Aaa AAA 6.100 10/01/04 775,000 825,375 Wichita, KS Water & Sewer Util. Ref. & Imp. Rev. Bonds FGIC Insured Aaa AAA 5.500 10/01/04 320,000 332,672 Wichita, KS Water & Sewer Util. Ref. & Imp. Rev. FGIC Insured Aaa AAA 5.600 04/01/05 610,000 638,469 Wichita, KS Water & Sewer Util. Ref. & Imp. Ref. FGIC Insured Aaa AAA 5.750 10/01/06 150,000 158,607 Winfield, KS Electric Sys. Ref. Rev. AMBAC Insured Aaa AAA 5.000 09/01/04 580,000 589,512 Wyandotte Co., KS G.O. Ref. & Imp. FGIC Insured Aaa AAA 7.000 09/01/05 1,020,000 1,082,679 Wyandotte Co., KS USD #204 (Bonner Springs) AMBAC Insured Aaa AAA 5.200 09/01/04 400,000 412,892 ---------- TOTAL KANSAS MUNICIPAL BONDS (COST: $25,686,669) $26,371,518 ----------- SHORT TERM SECURITIES (0.8%) Federated Tax-Free Trust (COST: $225,139) 225,139 ----------- TOTAL INVESTMENTS IN SECURITIES (COST: $25,911,808) $26,596,657 ===========
*Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 Statement of Assets and Liabilities January 31, 1997 (Unaudited) - ----------------------------------------------------------------
Assets Investment in securities, at value (cost: $25,911,808) $26,596,657 Cash 35,781 Accrued dividends receivable 2,937 Accrued interest receivable 537,984 Deferred organization costs 5,387 ----------- Total Assets $27,178,746 ----------- Liabilities Dividends payable $ 97,049 Accrued expenses 16,965 Payable for fund shares redeemed 45,600 ----------- Total Liabilities $ 159,614 ----------- Net Assets $27,019,132 =========== Net asset value per share, 2,199,940 shares outstanding $ 12.28 =========== Statement of Operations for the six months ended January 31, 1997 (Unaudited) - ------------------------------------------------------------------------------ INVESTMENT INCOME Interest $ 717,254 Dividends 10,971 ----------- Total Investment Income $ 728,225 ----------- EXPENSES Investment advisory fees $ 72,289 Custodian fees 4,374 Transfer agent fees 19,706 Accounting service fees 19,220 Audit and legal fees 6,426 Trustees' fees 1,542 Printing & postage 8,083 License, fees & registrations 1,115 Amortization of organization costs 3,879 ----------- Total Expenses $ 136,634 Less expenses waived or absorbed by the Fund's manager 30,527 ----------- Total Net Expenses $ 106,107 ----------- NET INVESTMENT INCOME $ 622,118 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES Net realized gain (loss) from: Investments $ 13,299 Futures (53,231) Net change in unrealized appreciation (depreciation) of investments 253,620 ----------- Net Realized and Unrealized Gain (Loss) on Investments and Futures $ 213,688 ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 835,806 ===========
The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 Statement of Changes in Net Assets For the six months ended January 31, 1997 and year ended July 31, 1996 - ----------------------------------------------------------------------
For The Six Months Ended January 31, 1997 For The Year Ended (Unaudited) July 31, 1996 ------------------------------------------------ INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 622,118 $ 1,366,829 Net realized gain (loss) on investment and futures transactions (39,932) 46,810 Net change in unrealized appreciation (depreciation) on investments 253,620 340,266 ------------------------------------------- Net Increase (Decrease) in Net Assets Resulting From Operations $ 835,806 $ 1,753,905 ------------------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income $ (622,118) $ (1,366,829) Distributions from net realized gain on investment transactions 0 0 ------------------------------------------- Total Dividends and Distributions $ (622,118) $ (1,366,829) ------------------------------------------- CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares $ 723,195 $ 2,780,585 Proceeds from reinvested dividends 370,022 811,269 Cost of Shares Redeemed (4,851,696) (4,093,311) ------------------------------------------- Net Increase (Decrease) in Net Assets Resulting From Capital Share Transactions $ (3,758,479) $ (501,457) ------------------------------------------- TOTAL INCREASE (DECREASE) IN NET ASSETS $ (3,544,791) $ (114,381) NET ASSETS, BEGINNING OF PERIOD 30,563,923 30,678,304 ------------------------------------------- NET ASSETS, END OF PERIOD $ 27,019,132 $ 30,563,923 ===========================================
The accompanying notes are an integral part of these financial statements. Notes to Financial Statements January 31, 1997 (Unaudited) Note 1. ORGANIZATION Business Operations -The Kansas Insured Intermediate Fund (the "Fund") is an investment portfolio of Ranson Managed Portfolios (the "Trust") registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust may offer multiple portfolios; currently four portfolios are offered. Ranson Managed Portfolios is an unincorporated business trust organized under Massachusetts law on August 10, 1990. The Fund had no operations from that date to November 23, 1992, other than matters relating to organization and registration. On November 23, 1992, the Fund commenced its Public Offering of capital shares to the public. The investment objective of the Fund is to provide its shareholders with as high a level of current income exempt from both federal and Kansas income tax as is consistent with preservation of capital. The Fund will seek to achieve this objective by investing primarily in a portfolio of Kansas insured securities. Shares of the Fund are offered at net asset value plus a maximum sales charge of 2.75% of the offering price. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment security valuation - Investments in securities traded on national securities exchanges are valued at the last reported sales price at the close of each business day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the portfolio management team. The Fund follows industry practice and records security transactions on the trade date. The Fund concentrates its investments in a single state. This concentration may result in the Fund investing a relatively high percentage of its assets in a limited number of issuers. Deferred organization costs - Costs incurred by the Fund in connection with its organization are being amortized over a 60-month period on the straight-line basis. Accumulated amortization at January 31, 1997 totaled $32,112. Federal and state income taxes - The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies, and to distribute all of its net investment income and any net realized gain on investments, to its shareholders. Therefore, no provision for income taxes is required. The Fund has available at January 31, 1997, a net capital loss carryforward totaling $305,774, which may be used to offset capital gains realized during subsequent years through July 31, 2004. Distributions to shareholders - Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Investment income - Dividend income is recognized on the ex-dividend date and interest income is recognized daily on an accrual basis. Premiums and discounts on securities purchased are amortized using the effective interest method over the life of the respective securities, unless callable, in which case they are amortized to the earliest call date. Futures contracts - The Fund may purchase and sell financial futures to hedge against changes in the values of tax-exempt municipal securities the Fund owns or expects to purchase. A futures contract is an agreement between two parties to buy or sell units of a particular index or a certain amount of U.S. Government or municipal securities at a set price on a future date. Upon entering into a futures contract, the Fund is required to deposit with a broker an amount of cash or securities equal to the minimum "initial margin" requirement of the futures exchange on which the contract is traded. Subsequent payments ("variation margin") are made or received by the Fund, dependent on the fluctuations in the value of the underlying index. Daily fluctuations in value are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize, for book purposes, a gain or loss equal to the difference between the value of the futures contracts sold and the futures contracts to buy. Certain risks may arise upon entering into futures contracts. These risks may include changes in the value of the futures contracts that may not directly correlate with changes in the value of the underlying securities. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3. CAPITAL SHARE TRANSACTIONS As of January 31, 1997, there were unlimited shares of no par authorized; 2,199,940 and 2,507,133 shares were outstanding at January 31, 1997 and July 31, 1996, respectively. Transactions in capital shares were as follows:
Shares Amount ------------------------------------------------------------------- For The For The For The For The Six Months Ended Year Ended Six Months Ended Year Ended January 31, 1997 July 31, 1996 January 31, 1997 July 31, 1996 ------------------------------------------------------------------- Shares sold 59,023 227,680 $ 723,195 $ 2,780,585 Shares issued on reinvestment of dividends 30,268 66,410 370,022 811,269 Shares redeemed (396,484) (335,874) (4,851,696) (4,093,311) ------------------------------------------------------------------- Net increase (decrease) (307,193) (41,784) $(3,758,479) $ (501,457) ===================================================================
Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES Ranson Capital Corporation, the Fund's investment adviser and underwriter, and ND Resources, Inc., the Fund's transfer and accounting services agent, are subsidiaries of ND Holdings, Inc., the Fund's sponsor. The Fund has engaged Ranson Capital Corporation, to provide investment advisory and management services to the Fund. The Investment Advisory Agreement provides for fees to be computed at an annual rate of 0.50% of the Fund's average daily net assets. The Fund has recognized $72,289 of investment advisory fees for the six months ended January 31, 1997. The Fund has a payable to Ranson Capital Corporation of $11,385 at January 31, 1997 for investment advisory fees. Certain officers and trustees of the Fund are also officers and directors of the investment adviser. ND Resources, Inc., (the transfer agent), provides shareholder services for a monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11% of the Fund's net assets on the next $15 million, 0.10% of the Fund's net assets on the next $10 million, and 0.09% of the Fund's net assets in excess of $50 million. The Fund has recognized $19,706 of transfer agency fees for the six months ended January 31, 1997. ND Resources, Inc. also acts as the Fund's accounting services agent for a monthly fee equal to the sum of a fixed fee of $2,000, and a variable fee equal to 0.05% of the Fund's average daily net assets on an annual basis for the Fund's first $50 million and at a lower rate on the average daily net assets in excess of $50 million. The Fund has recognized $19,220 of accounting service fees for the six months ended January 31, 1997. Note 5. INVESTMENT SECURITY TRANSACTIONS The cost of purchases and proceeds from the sales of investment securities (excluding short-term securities) aggregated $1,642,276 and $4,976,180, respectively, for the six months ended January 31, 1997. Note 6. INVESTMENT IN SECURITIES At January 31, 1997, the aggregate cost of securities for federal income tax purposes was $25,911,808, and the net unrealized appreciation of investments based on the cost was $684,849, which is comprised of $709,682 aggregate gross unrealized appreciation and $24,833 aggregate gross unrealized depreciation. Financial Highlights Selected per share data and ratios for the period indicated - --------------------------------------------------------------------------------
For the Six For the Period Since Months Ended For the Year For the Year For the Year Inception January 31, 1997 Ended July 31, Ended July 31, Ended July 31, (Nov. 23, 1992) to (Unaudited) 1996 1995 1994 July 31, 1993 ---------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 12.19 $ 12.04 $ 11.92 $ 12.24 $ 11.59 ---------------------------------------------------------------------------------- Income from Investment Operations: Net investment income $ .26 $ .53 $ .54 $ .52 $ .32 Net realized and unrealized gain (loss) on investments .09 .15 .12 (.30) .65 ---------------------------------------------------------------------------------- Total From Investment Operations $ .35 $ .68 $ .66 $ .22 $ .97 ---------------------------------------------------------------------------------- Less Distributions: Dividends from net investment income $ (.26) $ (.53) $ (.54) $ (.52) $ (.32) Distributions from net capital gains .00 .00 .00 (.02) .00 ---------------------------------------------------------------------------------- Total Distributions $ (.26) $ (.53) $ (.54) $ (.54) $ (.32) ---------------------------------------------------------------------------------- NET ASSET VALUE, END OF PERIOD $ 12.28 $ 12.19 $ 12.04 $ 11.92 $ 12.24 ================================================================================== Total Return 5.86%(A)(B) 5.75%(A) 5.72%(A) 1.81%(A) 13.50%(A)(B) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $27,019 $30,564 $30,678 $31,216 $22,110 Ratio of net expenses (after expense assumption) to average net assets 0.74%(B)(C) 0.69%(C) 0.62% (C) 0.51% (C) 0.33%(B)(C) Ratio of net investment income to average net assets 4.32%(B) 4.37% 4.57% 4.26% 4.41%(B) Portfolio turnover rate 5.89% 19.96% 63.00% 56.00% 152.00% (A) Excludes maximum sales charge of 2.75%. (B) Ratio was annualized. (C) During the periods indicated above, ND Holdings, Inc. or Ranson Capital Corporation assumed expenses of $30,527, $71,943, $112,745, $136,079 ,and $68,286, respectively. If the expenses had not been assumed, the annualized ratios of total expenses to average net assets would have been 0.94%, 0.92%, 0.98%, 0.99%, and 1.24%, respectively. Dear Shareholder: We are pleased to submit the semi-annual report for The Nebraska Municipal Fund. Included with this report is a list of portfolio holdings, along with the unaudited financial statments for the period ended January 31, 1997. Total assets of the Fund increased substantially in December when shares of the fund were exchanged for shares of the Heartland Nebraska Tax Free Fund. Benefits to shareholders include several economies of scale as well as listing on the NASDAQ, a national quotation service. Quotations may now be obtained using the symbol NEMUX and your daily share prices may be found in the financial papers under Integrity Mutual Funds. Management Discussion and Analysis: Moderate economic growth and low inflation during the six month period allowed municipal bond prices to advance generally until late in the period. Then bond values began to move lower as concerns about possible Federal Reserve monetary policy tightening settled into the market. The adviser employed a protective hedge by using U.S. Treasury Bond futures in anticipation of lower valuations. This had the effect of stablilizing share price from erosion during periods when interest rates were rising and tempering share price increases when interest rates decreased. The Nebraska Municipal Fund turned in steady performance for the six month period. Net asset value per share was $11.00 at the beginning of the period and increased to $11.13 by January 31, 1997. The adviser continues to invest primarily in high-grade Nebraska tax-exempt bonds. More information on portfolio makeup and performance is included on the next page. Economic Outlook and Municipal Bond Overview: U.S. economic growth has continued at a moderate pace and inflation has not been excessive. As 1997 unfolds, we aniticipate that the Federal Reserve will remain vigilant and may possibly move to curb inflation by tightening credit. Tax-exempt bonds should offer reasonable stability and liberal returns in the months ahead. We continue to be pleased with the performance of the Fund and would like to take this opportunity to thank you for your support and look forward to serving the shareholders of The Nebraska Municipal Fund. Sincerely, Robert E. Walstad President THE NEBRASKA MUNICIPAL FUND January 31, 1997 (Unaudited) The Nebraska Municipal Fund --------------------------- Performance and Composition Portfolio Quality Ratings - ------------------------- [pie chart] AAA 37.2% AA 25.6% A 24.4% BBB 0.3% NR 12.5% (non-rated) (Based on Total Long-Term Investments) Quality ratings reflect the financial strength of the issuer. They are assigned by independent rating services such as Moody's Investors Service and Standard & Poor's. Non-rated bonds have been determined to be of appropriate quality for the portfolio by Ranson Capital Corporation, the investment advisor. Key Statistics - -------------- 7-31-96 NAV (share value) $11.00 1-31-97 NAV $11.13 Average Maturity 18.8 yrs. Average Duration 6.5 yrs. Number of Issues 87 Total Net Assets $28,174,575 Lipper Ranking - -------------- 1 yr. 5 yr. Since Inception - ----------------------------------- #23 N/A N/A - ----------------------------------- Lipper analytical Services is an independent mutual fund ranking service. Rankings are based on average annual total returns for the periods ending 1-31-97 for funds in the "Other States Municipal Debt Funds" category. The 1 yr. And 5 yr. Rankings are out of a total of 63 and 11 funds, respectively. Average Annual Total Returns - ---------------------------- For periods ending January 31, 1997 - ----------------------------------- 1 yr. 5 yr. Since Inception - ----------------------------------- 3.28%* N/A 4.40%* - ----------------------------------- *The 1 yr. And Since Inception returns do not include the effect of the 2.75% maximum Sales Charge. They would have been (1.11)%, and 3.00% respectively, if they had. Returns are historical and are not a guarantee of future results. The Fund's share price, yields and total returns will vary, so that shares, when redeemed, may be worth more or less than their original cost. Portfolio Market Sectors - ------------------------ [pie chart] Utilities 24.8% Insured 23.4% Education 20.6% Gen. Obligation 12.5% Housing 9.2% Real Estate 4.2% Healthcare 3.7% Other 1.6% (As a % of Net Assets) Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes. Portfolio Manager's Comments - ---------------------------- Moderate economic growth and low inflation in 1996 led to a good year for The Nebraska Municipal Fund. This was achieved by investing primarily in insured, double tax-exempt Nebraska municipal bonds with areas of concentration in utility, education, and insured bond issues. Looking forward in 1997, we expect the U.S. Economy will continue its expansion, with real Gross Domestic Product (GDP) growing slightly stronger than in 1996. This could lead to slightly higher inflation as is evident in wages, as well as in consumer and industrial materaial prices. The higher-than-expected growth and inflation should prompt the Federal Reserve to raise rates sometime in 1997. However, we think the increases will be gradual enough to prevent a major market decline, although some volatility is to be expected. With this in mind, our efforts will be to continue to provide a high level of tax-free income, consistent with preservation of capital.
Schedule of Investments January 31, 1997 (Unaudited) Name of Issuer Ratings Percentages represent the market value ---------------- of each investment category to net assets Std. & Coupon Principal Market Moody's Poor's Rate Maturity Amount Value - -------------------------------------------------------------------------------------------------------------------------- NEBRASKA MUNICIPAL BONDS (98.4%) GENERAL OBLIGATION (12.5%) Dawson Co., NE San. & Impt. Dist. #1 (IBP Inc.) G.O. NR NR 6.950% 02/01/05 $ 125,000 $ 125,377 Douglas Co., NE (Law Enforcement Center) G.O. Aa AA+ 5.750 07/01/10 275,000 283,267 Hemingford, NE General Obligation NR NR 5.600 02/15/12 115,000 114,618 Lincoln, NE G.O. Storm Sewer & Drainage Aa AAA 5.500 06/01/14 200,000 202,288 Lincoln, NE G.O. Storm Sewer & Drainage Aa AAA 5.500 06/01/15 200,000 200,976 Lincoln, NE G.O. Various Purpose Aa AAA 5.500 12/01/15 200,000 199,244 Lincoln/Lancaster Counties, NE Pub. Bldg. Comm. Tax Lease Rental Aa AA+ 5.800 10/15/18 725,000 746,721 Lincoln/Lancaster Counties, NE Pub. Bldg. Comm. Rev. Aa AA+ 5.875 10/15/23 850,000 854,242 Omaha, NE Various Purpose Aaa AAA 6.250 12/01/12 250,000 268,682 Omaha, NE Various Purpose Aaa AAA 6.250 12/01/14 250,000 266,643 Papillion, NE General Obligation NR NR 6.150 07/01/12 105,000 106,381 Washington Co., NE General Obligation NR NR 5.450 01/01/14 160,000 156,283 ----------- $ 3,524,722 ----------- HEALTH CARE (3.7%) Hall Co., NE Hosp. Auth. (Regency Rtmt.) Rev. NR NR 6.000% 12/01/18 $ 85,000 $ 80,219 Lancaster Co., NE (Lincoln Med. Ed. Fdn. Hosp.) Hosp. Auth. #1 NR NR 5.700 02/01/11 100,000 100,686 Lancaster Co., NE (Lincoln Med. Ed. Fdn. Hosp.) Hosp. Auth. #1 NR NR 5.800 02/01/12 175,000 176,242 NE Invt. Finance Auth. (Great Plains Regl. Med. Ctr.) Rev. NR AA 6.500 05/15/14 150,000 156,426 Scotts Bluff Co., NE (Regional West Med. Ctr.) Hosp. Auth. Rev. A A 6.450 12/15/04 275,000 291,225 Univ. of NE Facilities Corp. (U. of NE Med. Ctr.) Rev. Ref. A-1 AA- 5.250 07/01/11 250,000 246,590 ----------- $ 1,051,388 ----------- HOUSING (9.2%) NE Invt. Finance Auth. (Muirfield Greens) Multifamily Rev. Aa NR 6.800% 12/01/15 $ 385,000 $ 399,445 NE Invt. Finance Auth. (Muirfield Greens) Multifamily Rev. Aa NR 6.850 12/01/25 525,000 549,418 *NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 6.600 09/01/20 730,000 745,031 NE Invt. Finance Auth. Single Family Hsg. Rev. NR AAA 6.500 09/01/18 400,000 403,044 NE Invt. Finance Auth. Multifamily Hsg. Rev. NR AAA 6.200 06/01/28 500,000 489,800 ----------- $ 2,586,738 ----------- INSURED/GUARANTEED (23.4%) Buffalo Co., NE (Srs. Charity Hlth. Care) Hosp. Auth. MBIA Insured Aaa AAA 6.375% 05/15/04 $ 250,000 $ 269,377 *Buffalo Co., NE (Srs. Charity Hlth. Care) Hosp. Rev. MBIA Insured Aaa AAA 6.625 05/15/09 300,000 325,887 Cass Co., NE SD #001 G.O. FGIC Insured Aaa AAA 6.250 12/01/14 300,000 314,103 Cass Co., NE USD #001 G.O. FGIC Insured Aaa AAA 6.350 12/01/19 300,000 315,648 Douglas Co., NE Hosp. Dist. #2 (Cath. Hlth. Corp.) Rev. MBIA Insured Aaa AAA 5.500 11/15/21 340,000 332,415 Douglas Co., NE SD #17 (Millard) G.O. MBIA Insured Aaa AAA 5.650 12/15/05 400,000 416,564 Gage Co., NE SD #15 G.O. AMBAC Insured NR AAA 5.900 12/15/16 850,000 863,957 Lancaster Co., NE (Bryan Mem. Hosp.) Hosp. Auth. #1 Rev. MBIA Insured Aaa AAA 6.600 06/01/12 100,000 109,412 *Lancaster Co., NE (Bryan Mem. Hosp.) Hosp. Auth. #1 Rev. MBIA Insured Aaa AAA 6.700 06/01/22 250,000 270,440 Lincoln, NE (Lincoln Gen. Hosp.) Rev. & Ref. CGIC Insured Aaa AAA 6.200 12/01/14 100,000 104,947 Lincoln, NE (Lincoln Gen. Hosp.) Rev. & Ref. CGIC Insured Aaa AAA 6.200 12/01/14 50,000 52,473 Otoe Co., NE SD #111 (Nebraska City) Ref. AMBAC Insured Aaa AAA 5.800 11/15/14 400,000 410,736 Lancaster Co., NE (Waverly) SD #145 G.O. AMBAC Insured Aaa AAA 5.500 12/01/16 100,000 99,535 *NE Muni. Energy Agcy. Pwr. Supply System Rev. Ref. AMBAC Insured Aaa AAA 6.000 04/01/17 1,000,000 1,037,310 NE Education Finance Auth. (Creighton Univ.) Rev. AMBAC Insured Aaa AAA 5.950 01/01/11 300,000 308,109 NE Education Finance Auth. (Creighton Univ.) Rev. MBIA Insured Aaa AAA 5.700 11/01/04 450,000 466,259 NE Public Power Dist. Power Supply System Rev. FSA Insured Aaa AAA 5.000 01/01/17 200,000 183,020 Northeast NE Solid Waste Facility Rev. MBIA Insured Aaa AAA 5.900 05/15/15 600,000 602,298 Omaha, NE Airport Auth. Rev. Ref. MBIA Insured Aaa AAA 5.250 01/01/13 100,000 98,724 ----------- $ 6,581,214 ----------- REAL ESTATE (4.2%) David City, NE (Henningsen Foods) IDR NR NR 6.400% 12/15/02 $ 25,000 $ 26,104 LaVista, NE (Golf Course) Rec. Facilities Rev. NR NR 5.400 12/15/10 40,000 38,362 LaVista, NE (Golf Course) Rec. Facilities Rev. NR NR 5.400 12/15/11 65,000 62,209 Lincoln, NE Parking Revenue Refunding NR NR 5.200 08/15/14 215,000 201,651 Omaha, NE Parking Facilities Corp. (Omaha Park 4/5) Lse. Rev. Aa-1 AAA 5.700 09/15/15 750,000 755,842 Sarpy Co., NE (Willow Springs) San. & Impt. Dist. #86 Ref. NR NR 6.250 01/15/17 100,000 99,549 ----------- $ 1,183,717 ----------- EDUCATION (20.6%) Cedar Co., NE SD #45 General Obligation NR NR 5.350% 11/15/14 $ 100,000 $ 95,683 Chadron St. College, NE Student Fees & Facs. Rev. Ref. NR NR 5.700 07/01/11 300,000 296,019 Dawson Co., NE (Lexington) SD #1 General Obligation NR NR 5.400 12/15/12 135,000 133,616 Dawson Co., NE (Lexington) SD #1 General Obligation NR NR 5.450 12/15/13 115,000 113,595 Dawson Co., NE (Lexington) SD #1 General Obligation NR NR 5.450 12/15/14 140,000 138,201 Kearney Co., NE SD #503 General Obligation NR NR 6.150 12/15/12 100,000 100,830 Merrick Co., NE SD General Obligation NR NR 5.350 01/15/12 100,000 97,800 Merrick Co., NE SD #49 General Obligation NR NR 6.200 07/01/10 45,000 45,897 Merrick Co., NE SD #49 General Obligation NR NR 6.250 07/01/14 50,000 51,168 NE Education Finance Auth. (Midland Luth. College) Rev. NR NR 6.250 06/15/15 100,000 99,572 NE Higher Education Loan Pgm. Junior Subord. Term A NR 6.450 06/01/18 400,000 409,940 NE Higher Education Loan Pgm. Senior Subord. Term Aa NR 6.250 06/01/18 800,000 801,152 NE Higher Education Loan Pgm. (Student Loan) Rev. A NR 5.875 06/01/14 1,350,000 1,326,591 NE State Education Service Unit #3 Rev. NR NR 5.500 06/01/13 450,000 442,971 Douglas Co., NE SD #1 (Omaha) General Obligation Ref. Aa AAA 5.000 12/15/11 200,000 194,366 Saunders Co., NE SD #9 General Obligation NR NR 5.400 12/01/14 75,000 71,753 Saunders Co., NE SD #9 General Obligation NR NR 5.450 12/01/16 235,000 225,137 Saunders Co., NE SD #9 General Obligation NR NR 5.450 12/01/17 125,000 119,603 Univ. of NE (Omaha Student Ctr.) Brd. of Rgts. Rev. A-1 A+ 5.250 05/15/10 250,000 248,218 Univ. of NE (Student Ctr.) University Rev. A-1 A+ 5.350 05/15/13 350,000 347,938 Univ. of NE (Student Ctr.) University Rev. A-1 A+ 5.250 05/15/14 200,000 199,880 Washington Co., NE SD #1 General Obligation NR A 5.800 07/15/11 100,000 102,076 Washington Co., NE (Blair) SD #1 General Obligation NR A 5.900 07/15/15 135,000 138,318 ------------ $ 5,800,324 ------------ UTILITIES (24.8%) Beatrice, NE Combined Utilities Rev. NR NR 5.600% 09/15/10 $ 120,000 $ 119,636 Beatrice, NE Combined Utilities Rev. NR NR 5.700 09/15/11 125,000 124,684 Grand Island, NE Sewer System Rev. A NR 6.000 04/01/14 250,000 262,085 Hastings, NE Electric Rev. A A 6.300 01/01/19 370,000 386,779 Hastings, NE Electric System Rev. Ref. A A 5.200 01/01/13 370,000 354,908 Kearney, NE Combined Utilities Rev. A-1 NR 6.100 06/01/14 600,000 616,350 Lincoln, NE Electric System Rev. Aa AA+ 5.750 09/01/16 750,000 759,135 Lincoln, NE Electric System Rev. Ref. Aa AA 5.250 09/01/15 960,000 909,850 Lincoln, NE Water Revenue & Refunding Aa AA+ 5.300 08/15/11 200,000 200,362 NE Public Power Dist. Power Supply System Rev. A-1 A+ 6.125 01/01/15 390,000 403,720 NE Public Power Dist. Power Supply System Rev. A-1 A+ 5.750 01/01/20 750,000 745,965 NE Public Power District Rev. A-1 A+ 5.000 01/01/17 1,000,000 919,560 Omaha, NE Public Power Dist. Electric System Rev. Aa AA+ 5.700 02/01/17 250,000 251,780 Omaha, NE Public Power Dist. Electric System Rev. Aa AA 5.600 02/01/12 80,000 80,646 Omaha, NE Public Power Dist. Electric System Rev. NR AA 6.000 02/01/15 330,000 333,257 Omaha, NE Public Power Dist. Electric System Rev. Aa AA 6.200 02/01/17 500,000 527,140 ------------ $ 6,995,857 ------------ TOTAL NEBRASKA MUNICIPAL BONDS (COST: $27,437,429) $ 27,723,960 SHORT TERM SECURITIES (0.5%) Federated Tax-Free Trust (COST: $145,650) 145,650 ------------ TOTAL INVESTMENTS IN SECURITIES (COST: $27,583,079) $ 27,869,610 ============
*Indicates bonds are segregated by the custodian to cover when-issued or delayed-delivery purchases. The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 Statement of Assets and Liabilities January 31, 1997(Unaudited) - ---------------------------------------------------------------
Assets Investment in securities, at value (Cost: $27,583,079) $27,869,610 Cash 58,578 Accrued interest receivable 372,531 Accrued dividends receivable 1,217 Receivable for fund shares sold 25,000 Security sales receivable 432,988 Deferred organization costs 10,082 ----------- Total Assets $28,770,006 ----------- Liabilities Dividends payable $ 115,380 Accrued expenses 21,784 Security purchases payable 457,917 Variation margin on futures 350 ----------- Total Liabilities $ 595,431 ----------- Net Assets $28,174,575 =========== Net asset value per share, 2,530,542 shares outstanding $ 11.13 =========== Statement of Operations for the six monthes ended January 31, 1997(Unaudited) - ------------------------------------------------------------------------------ INVESTMENT INCOME Interest $ 591,768 Dividends 9,551 ----------- Total Investment Income $ 601,319 ----------- EXPENSES Investment advisory fees $ 53,235 Distribution fees (12b-1) 26,618 Custodian fees 2,452 Transfer agent fees 15,538 Accounting service fees 17,349 Audit and legal fees 6,186 Printing and postage 9,711 Trustees fees 1,344 License, fees, and registrations 5,034 Amortization of organization costs 2,778 ----------- Total Expenses $ 140,245 Less expenses waived or absorbed by the Fund's manager 66,137 ----------- Total Net Expenses $ 74,108 ----------- NET INVESTMENT INCOME $ 527,211 ----------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES Net realized gain (loss) from: Investment transactions $ (76,767) Futures transactions (17,827) Net change in unrealized appreciation (depreciation) of: Investments 334,152 Futures (350) ----------- Net Realized And Unrealized Gain (Loss) On Investments And Futures $ 239,208 ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 766,419 ===========
The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 Statement of Changes in Net Assets For the six months ended January 31, 1997 and year ended July 31, 1996 - ----------------------------------------------------------------------
For The Six Months For The Year Ended January 31 Ended 1997 (Unaudited) July 31, 1996 --------------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 527,211 $ 864,605 Net realized gain (loss) on investment and futures transactions (94,594) (15,386) Net change in unrealized appreciation (depreciation) on investments and futures 333,802 23,173 -------------------------------- Net Increase (Decrease) in Net Assets Resulting From Operations $ 766,419 $ 872,392 -------------------------------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income $ (527,211) $ (864,605) Distributions from net realized gain on investment and futures transactions 0 0 -------------------------------- Total Dividends and Distributions $ (527,211) $ (864,605) -------------------------------- CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares $ 11,651,885 $ 4,757,147 Proceeds from reinvested dividends 321,647 543,019 Cost of shares redeemed (2,115,123) (1,675,710) -------------------------------- Net Increase (Decrease) in Net Assets Resulting From Capital Share Transactions $ 9,858,409 $ 3,624,456 -------------------------------- TOTAL INCREASE IN NET ASSETS $ 10,097,617 $ 3,632,243 NET ASSETS, BEGINNING OF PERIOD 18,076,958 14,444,715 -------------------------------- NET ASSETS, END OF PERIOD $ 28,174,575 $ 18,076,958 ================================
The accompanying notes are an integral part of these financial statements. Notes to Financial Statements January 31, 1997 (Unaudited) Note 1. ORGANIZATION Business Operations - The Nebraska Municipal Fund (the "Fund") is an investment portfolio of Ranson Managed Portfolios (the "Trust") registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust may offer multiple portfolios; currently four portfolios are offered. Ranson Managed Portfolios is an unincorporated business trust organized under Massachusetts law on August 10, 1990. The Fund had no operations from that date to November 17, 1993, other than matters relating to organization and registration. On November 17, 1993, the Fund commenced its Public Offering of capital shares to the public. The investment objective of the Fund is to provide its shareholders with as high a level of current income exempt from both federal and Nebraska income taxes as is consistent with preservation of capital. The Fund will seek to achieve this objective by investing primarily in a portfolio of Nebraska municipal securities. Shares of the Fund are offered at net asset value plus a maximum sales charge of 4.25% of the offering price. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment security valuation - Investments in securities traded on national securities exchanges are valued at the last reported sales price at the close of each business day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the portfolio management team. The Fund follows industry practice and records security transactions on the trade date. The Fund concentrates its investments in a single state. This concentration may result in the Fund investing a relatively high percentage of its assets in a limited number of issuers. Deferred organization costs - Costs incurred by the Fund in connection with its organization are being amortized over a 60-month period on the straight-line basis. Accumulated amortization at January 31, 1997 totaled $16,972. Federal and state income taxes - The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies, and to distribute all of its net investment income and any net realized gain on investments, to its shareholders. Therefore, no provision for income taxes is required. The Fund has available at January 31, 1997, a net capital loss carryforward totaling $542,174, which may be used to offset capital gains realized during subsequent years through July 31, 2004. Distributions to shareholders - Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Investment income - Dividend income is recognized on the ex-dividend date and interest income is recognized daily on an accrual basis. Premiums and discounts on securities purchased are amortized using the effective interest method over the life of the respective securities, unless callable, in which case they are amortized to the earliest call date. Futures contracts - The Fund may purchase and sell financial futures contracts to hedge against changes in the values of tax-exempt municipal securities the Fund owns or expects to purchase. A futures contract is an agreement between two parties to buy or sell units of a particular index or a certain amount of U.S. Government or municipal securities at a set price on a future date. Upon entering into a futures contract, the Fund is required to deposit with a broker an amount of cash or securities equal to the minimum "initial margin" requirement of the futures exchange on which the contract is traded. Subsequent payments ("variation margin") are made or received by the Fund, dependent on the fluctuations in the value of the underlying index. Daily fluctuations in value are recorded for financial reporting purposes as unrealized gains or losses by the Fund. When entering into a closing transaction, the Fund will realize, for book purposes, a gain or loss equal to the difference between the value of the futures contracts sold and the futures contracts to buy. Certain risks may arise upon entering into futures contracts. These risks may include changes in the value of the futures contracts that may not directly correlate with changes in the value of the underlying securities. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3. CAPITAL SHARE TRANSACTIONS As of January 31, 1997, there were unlimited shares of no par authorized; 2,530,542 and 1,644,023 shares were outstanding at January 31, 1997 and July 31, 1996, respectively. Transactions in capital shares were as follows:
Shares Amount ------------------------------------------------------------------- For The For The For The For The Six Months Ended Year Ended Six Months Ended Year Ended January 31, 1997 July 31, 1996 January 31, 1997 July 31, 1996 ------------------------------------------------------------------- Shares sold 1,048,556 428,516 $ 11,651,885 $ 4,757,147 Shares issued on reinvestment of dividends 29,096 48,978 321,647 543,019 Shares redeemed (191,133) (152,247) (2,115,123) (1,675,710) ------------------------------------------------------------------- Net increase 886,519 325,247 $ 9,858,409 $ 3,624,456 ===================================================================
Note 4. PLAN OF REORGANIZATION An agreement and plan of reorganization was approved effective December 9, 1996 by the shareholders of the Heartland Nebraska Tax Free Fund (Heartland). Pursuant to the agreement, the Fund, in exchange for the assets of Heartland, assumed certain liabilities of Heartland and issued shares of the Fund to shareholders of Heartland on a pro rata basis. On the date of exchange, 926,218 shares of the Fund were issued to the shareholders of Heartland for net assets of $10,299,543 at $11.12 per share. Note 5. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES Ranson Capital Corporation, the Fund's investment adviser and underwriter, and ND Resources, Inc., the Fund's transfer and accounting services agent, are subsidiaries of ND Holdings, Inc., the Fund's sponsor. The Fund has engaged Ranson Capital Corporation to provide investment advisory and management services to the Fund. The Investment Advisory Agreement provides for fees to be computed at an annual rate of 0.50% of the Fund's average daily net assets. The Fund has recognized $53,235 of investment advisory fees for the six months ended January 31, 1997. The adviser elected to waive $8,524 of this fee. The Fund has a payable to Ranson Capital Corporation of $11,574 at January 31, 1997 for investment advisory fees. Certain officers and trustees of the Fund are also officers and directors of the investment adviser. The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25% of the average daily net assets of the Fund to Ranson Capital Corporation (Capital), its principal underwriter, for expenses incurred in the distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled to reimbursement each month for its actual expenses incurred in the distribution and promotion of the Fund's shares, including the printing of prospectuses and reports used for sales purposes, expenses of preparation and printing of sales literature and other such distribution related expenses, including any distribution or service fees paid to securities dealers who have executed a dealer sales agreement with Capital. Capital will be reimbursed at an annual rate not to exceed 0.25% of the average daily net assets of the Fund for the prior month. The Fund has recognized $26,618 of 12b-1 fee expenses for the six months ended January 31, 1997. The Fund has a payable to Ranson Capital Corporation of $5,907 at January 31, 1997 for 12b-1 fees. In addition, the Fund has engaged ND Capital, Inc. as agent for the purchase of certain investment securities. For the six months ended January 31, 1997, commissions earned by ND Capital, Inc. totaled $500 and are included in the cost basis of the securities acquired. ND Resources, Inc., (the transfer agent), provides shareholder services for a montly fee equal to an annual rate of 0.16% of the Fund's first $10 million of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11% of the Fund's net assets on the next $15 million, 0.10% of the Fund's net assets on the next $10 million, and 0.09% of the Fund's net assets in excess of $50 million. The Fund has recognized $15,538 of transfer agency fees for the six months ended January 31, 1997. ND Resources, Inc. also acts as the Fund's accounting services agent for a monthly fee equal to the sum of a fixed fee of $2,000, and a variable fee equal to 0.05% of the Fund's average daily net assets on an annual basis for the Fund's first $50 million and at a lower rate on the average daily net assets in excess of $50 million. The Fund has recognized $17,349 of accounting service fees for the six months ended January 31, 1997. Note 6. INVESTMENT SECURITY TRANSACTIONS The cost of purchases and proceeds from the sales of investment securities (excluding short-term securities) aggregated $2,157,754 and $769,237 respectively, for the six months ended January 31, 1997. Note 7. INVESTMENT IN SECURITIES At January 31, 1997, the aggregate cost of securities for federal income tax purposes was $27,583,079, and the net unrealized appreciation of investments based on the cost was $286,531 which is comprised of $519,843 aggregate gross unrealized appreciation and $233,312 aggregate gross unrealized depreciation. Financial Highlights Selected per share data and ratios for the period indicated - --------------------------------------------------------------------------------
For The Period For the Six For The Year For The Year Since Inception Months Ended Ended Ended (Nov. 17, 1993) January 31,1997 July 31, July 31, Through (Unaudited) 1996 1995 July 31, 1994 ------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.00 $ 10.95 $ 10.82 $ 11.49 ------------------------------------------------------------- Income from Investment Operations: Net Investment Income $ .27 $ .57 $ .59 $ .45 Net realized and unrealized gain (loss) on investments .13 .05 .13 (.67) ------------------------------------------------------------ Total From Investment Operations $ .40 $ .62 $ .72 $ (.22) ------------------------------------------------------------ Less Distributions: Dividends from net investment income $ (.27) $ (.57) $ (.59) $ (.45) Distributions from net capital gains .00 .00 .00 .00 ------------------------------------------------------------ Total Distributions $ (.27) $ (.57) $ (.59) $ (.45) ------------------------------------------------------------ NET ASSET VALUE, END OF PERIOD $ 11.13 $ 11.00 $ 10.95 $ 10.82 ============================================================ Total Return 7.42%(A)(B) 5.73%(A) 7.14%(A) (3.20)%(A)(B) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $28,175 $18,077 $14,445 $8,171 Ratio of net expenses (after expense assumption) to average net assets 0.70%(B)(C) 0.62%(C) 0.35%(C) 0.19%(B)(C) Ratio of net investment income to average net assets 4.96%(B) 5.13% 5.63% 5.51%(B) Portfolio turnover rate 4.28% 27.20% 140.00% 314.00%
(A) Excludes maximum sales charge of 4.25%. (B) Ratio was annualized. (C) During the periods indicated above, ND Holdings, Inc. or Ranson Capital Corporation assumed expenses of $66,137, $129,053, $146,913 and $70,186, respectively. If the expenses had not been assumed, the annualized ratios of total expenses to average net assets would have been 1.32%, 1.38%, 1.66%, and 2.25%, respectively. Dear Shareholder: We are pleased to submit the first report to shareholders for the period ended January 31, 1997. The Fund began operations on September 25, 1996 and the promotion phase is in full swing. Included with this report is a list of portfolio holdings along with the financial statements for the period. Management Discussion and Analysis: Moderate economic growth and low inflation during the period allowed municipal bond prices to advance generally until later in the period. Then bond values began to move lower as concerns about possible Federal Reserve monetary policy tightening settled into the market. The Oklahoma Municipal Fund turned in steady performance for the period. Net asset value per share was $11.49 at inception and increased to $11.56 by January 31, 1997. The adviser continues to invest primarily in high-grade Oklahoma tax-exempt bonds. More information on the portfolio makeup and performance are included on the next page. Economic Outlook and Municipal Bond Overview: U.S. economic growth has continued at a moderate pace and inflation has not been excessive. As 1997 unfolds we anticipate that the Federal Reserve will remain vigilant and may possibly move to curb inflation by tightening credit. Tax-exempt bonds should offer reasonable stability and liberal returns in the months ahead. We continue to be pleased with the performance of the Fund and would like to take this opportunity to thank you for your support and look forward to serving the shareholders of The Oklahoma Municipal Fund. Sincerely, Robert E. Walstad President THE OKLAHOMA MUNICIPAL FUND January 31, 1997 (Unaudited) The Oklahoma Municipal Fund --------------------------- Performance and Composition Portfolio Quality Ratings - ------------------------- [pie chart] AAA 79.9% AA 1.7% A 13.8% BBB 0.0% NR 4.6% (non-rated) (Based on Total Long-Term Investmentsts) Quality ratings reflect the financial strength of the issuer. They are assigned by independent rating services such as Moody's Investors Service and Standard & Poor's. Non-rated bonds have been determined to be of appropriate quality for the portfolio by Ranson Capital Corporation, the investment advisor. Key Statistics - -------------- 9-25-96 NAV (share value) $11.49 1-31-97 NAV $11.56 Average Maturity 15.8 yrs. Average Duration 12.0 yrs. Number of Issues 16 Total Net Assets $603,089 Average Annual Total Returns - ---------------------------- For periods ending January 31, 1997 Average Annual Total Returns - ----------------------------------- 1 yr. 5 yr. Since Inception - ----------------------------------- N/A N/A N/A - ----------------------------------- No total return data is available for the Fund as it has not yet completed one full year of operation. See the "Financial Highlights" section of the semi - -annual report. Portfolio Market Sectors - ------------------------ [pie chart] Insured 56.0% Utilities 22.8% Education 8.6% Housing 4.2% Real Estate 4.1% Other 2.6% Gen. Obligation 1.7% (As a % of Net Assets) Market sectors are breakdowns of the Fund's portfolio holdings into specific investment classes. Portfolio Manager's Comments - ---------------------------- Moderate economic growth and low inflation in 1996 led to a good beginning for The Oklahoma Municipal Fund. This was achieved by investing primarily in high quality, double tax-exempt Oklahoma municipal bonds with areas of concentration in utility and insured bond issues. Looking forward in 1997, we expect the U.S. Economy will continue its expansion, with real Gross Domestic Product (GDP) growing slightly stronger than in 1996. This could lead to slightly higher inflation as is evident in wages, as well as in consumer and industrial material prices. The higher-than-expected growth and inflation should prompt the Federal Reserve to raise rates sometime in 1997. However, we think the increases will be gradual enough to prevent a major market decline, although some volatility is to be expected With this in mind, our efforts will be to continue to provide a high level of double tax-free income, consistent with preservation of capital.
Schedule of Investments Janurary 31, 1997 (Unaudited) Name Gen. Obligation 1.7%of Issuer Ratings Percentages represent the market value ---------------- of each investment category to net assets Std. & Coupon Principal Market Moody's Poor's Rate Maturity Amount Value ----------------------------------------------------------------- OKLAHOMA MUNICIPAL BONDS (97.4%) GENERAL OBLIGATION (1.7%) OK General Obligation Limited Tax Building Aa-1 AA+ 5.000% 07-15-08 $ 10,000 $ 10,150 --------- HOUSING (4.2%) OK Housing Finance Agcy. (Homeownership) Single Family Rev. Aaa NR 6.100% 09-01-16 $ 25,000 $ 25,209 --------- INSURED/GUARANTEED (56.0%) Central OK Transportation & Parking Auth. (Parking) FSA Insured Aaa AAA 5.250% 07-01-16 $ 25,000 $ 24,102 Grand River Dam Auth., OK Rev. AMBAC Insured Aaa AAA 6.250 06-01-11 110,000 120,933 Langston University, OK (Student Housing) COP's MBIA Insured Aaa AAA 5.125 02-01-17 20,000 18,458 OK Dev. Finance Auth. (OK State University) Rev. AMBAC Insured Aaa AAA 5.600 07-01-11 35,000 37,038 OK State Municipal Power Auth. Rev. MBIA Insured Aaa AAA 5.875 01-01-15 25,000 26,720 OK State Turnpike Auth. Rev. AMBAC Insured Aaa AAA 6.000 01-01-12 25,000 27,201 OK State Turnpike Auth. Rev. AMBAC Insured Aaa AAA 6.100 01-01-15 30,000 33,025 Tulsa, OK (St. John's Med. Ctr.) Industrial Auth. MBIA Insured Aaa AAA 5.375 02-15-11 25,000 24,548 Tulsa, OK Community College (Student Ctr.) Rev. MBIA Insured Aaa AAA 5.500 07-01-16 25,000 25,494 --------- $ 337,519 --------- REAL ESTATE (4.1%) OK Capital Improvement Auth. Rev. A NR 5.500% 10-01-16 $ 25,000 $ 24,919 --------- SCHOOL (8.6%) OK Dev. Finance Auth. (Southern Nazarene Univ.) Rev. NR NR 6.500% 11-01-13 $ 25,000 $ 26,818 OK State Student Loan Rev. Ref. A-1 A 5.100 08-01-08 25,000 25,320 --------- $ 52,138 --------- UTILITIES (22.8%) Grand River Dam Auth., OK Rev. Ref. A A- 5.500% 06-01-10 $ 30,000 $ 30,691 OK State Municipal Power Auth. Rev. Aaa AAA 5.875 01-01-12 100,000 106,974 --------- $ 137,665 --------- TOTAL OKLAHOMA MUNICIPAL BONDS (COST: $584,577) $ 587,600 --------- SHORT TERM SECURITIES (2.1%) Federated Tax-Free Trust (COST: $12,936) 12,936 --------- TOTAL INVESTMENTS IN SECURITIES (COST: $597,513) $ 600,536 =========
The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 (Unaudited) Statement of Assets and Liabilities Januay 31, 1997 (Unaudited) - ---------------------------------------------------------------
Assets Investment in securities, at value (Cost: $597,513) $ 600,536 Accrued interest receivable 5,588 Accrued dividends receivable 73 Receivable for fund shares sold 30,000 Deferred organization costs 26,550 --------- Total Assets $ 662,747 ========= Liabilities Dividends payable $ 2,267 Security purchases payable 28,467 Organizational costs payable 26,550 Other Payables 2,374 --------- Total Liabilities $ 59,658 --------- Net Assets $ 603,089 ========= Net asset value per share, 52,173 shares outstanding $ 11.56 ========= Statement of Operations for the period since inception (September 25, 1996) through January 31, 1997 (Unaudited) - ---------------------------------------------------------------------------- INVESTMENT INCOME Interest $ 6,474 Dividends 476 --------- Total Investment Income $ 6,950 ---------- EXPENSES Investment advisory fees $ 670 Distribution fees (12b-1) 350 Custodian fees 12 Transfer agent fees 273 Accounting service fees 8,072 Printing and postage 401 --------- Total Expenses $ 9,778 Less expenses waived or absorbed by the Fund's manager 9,778 --------- Total Net Expenses $ 0 --------- NET INVESTMENT INCOME $ 6,950 --------- REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS Net realized gain (loss) on investment transactions $ (296) Net change in unrealized appreciation (depreciation) of investments 3,023 --------- Net Realized And Unrealized Gain (Loss) On Investments $ 2,727 --------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 9,677 =========
The accompanying notes are an integral part of these financial statements. Financial Statements January 31, 1997 (Unaudited) Statement of Changes in Net Assets For the period since inception (September 25, 1996) through January 31, 1997 (Unaudited) - ----------------------------------------------------------------------------
For The Period Since Inception (September 25, 1996 Through January 31, 1997) (Unaudited) ------------------------- INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS Net investment income $ 6,950 Net realized gain (loss) on investment transactions (296) Net change in unrealized appreciation (depreciation) on investments 3,023 ----------- Net Increase (Decrease) in Net Assets Resulting From Operations $ 9,677 ----------- DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS Dividends from net investment income $ (6,950) Distributions from net realized gain on investment transactions 0 ----------- Total Dividends and Distributions $ (6,950) ----------- CAPITAL SHARE TRANSACTIONS Proceeds from sale of shares $ 597,894 Proceeds from reinvested dividends 2,529 Cost of shares redeemed (61) ----------- Net Increase (Decrease) in Net Assets Resulting From Capital Share Transactions $ 600,362 ----------- TOTAL INCREASE IN NET ASSETS $ 603,089 NET ASSETS, BEGINNING OF PERIOD $ 0 ----------- NET ASSETS, END OF PERIOD $ 603,089 ===========
The accompanying notes are an integral part of these financial statements. Notes to Financial Statements January 31, 1997 (Unaudited) Note 1. ORGANIZATION Business Operations - The Oklahoma Municipal Fund (the "Fund") is an investment portfolio of Ranson Managed Portfolios (the "Trust") registered under the Investment Company Act of 1940, as amended, as a non-diversified, open-end management investment company. The Trust may offer multiple portfolios; currently four portfolios are offered. Ranson Managed Portfolios is an unincorporated business trust organized under Massachusetts law on August 10, 1990. The Fund had no operations from that date to September 25, 1996, other than matters relating to organization and registration. On September 25, 1996, the Fund commenced its Public Offering of capital shares to the public. The investment objective of the Fund is to provide its shareholders with as high a level of current income exempt from both federal income tax and, to a certain extent, Oklahoma income tax, as is consistent with preservation of capital. Up to 30% of the Fund's total assets may be invested in Oklahoma municipal securities which are subject to Oklahoma state income taxes. The Fund will seek to achieve this objective by investing primarily in a portfolio of Oklahoma municipal securities. Shares of the Fund are offered at net asset value plus a maximum sales charge of 4.25% of the offering price. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investment security valuation - Investments in securities traded on national securities exchanges are valued at the last reported sales price at the close of each business day. Securities for which market quotations are not readily available are valued at fair value as determined in good faith by the portfolio management team. The Fund follows industry practice and records security transactions on the trade date. The Fund concentrates its investments in a single state. This concentration may result in the Fund investing a relatively high percentage of its assets in a limited number of issuers. Deferred organization costs - Costs incurred by the Fund in connection with its organization will be amortized over a 60-month period on the straight-line basis. Federal and state income taxes - The Fund's policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies, and to distribute all of its net investment income and any net realized gain on investments, to its shareholders. Therefore, no provision for income taxes is required. Distributions to shareholders - Dividends from net investment income, declared daily and payable monthly, are reinvested in additional shares of the Fund at net asset value or paid in cash. Capital gains, when available, are distributed at least annually. Investment income - Dividend income is recognized on the ex-dividend date and interest income is recognized daily on an accrual basis. Premiums and discounts on securities purchased are amortized using the effective interest method over the life of the respective securities, unless callable, in which case they are amortized to the earliest call date. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 3. CAPITAL SHARE TRANSACTIONS As of January 31, 1997, there were unlimited shares of no par authorized; 52,173 shares were outstanding. Transactions in capital shares were as follows:
Shares Amount --------------------------------------------------------- For the Period Since For the Period Since Inception (Sept. 25, 1996) Inception (Sept. 25, 1996) Through Jan. 31, 1997 Through Jan. 31, 1997 --------------------------------------------------------- Shares sold 51,961 $ 597,894 Shares issued on reinvestment of dividends 217 2,529 Shares redeemed (5) (61) --------------------------------------------------------- Net increase 52,173 $ 600,362 =========================================================
Note 4. INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES Ranson Capital Corporation, the Fund's investment adviser and underwriter, and ND Resources, Inc., the Fund's transfer and accounting services agent, are subsidiaries of ND Holdings, Inc., the Fund's sponsor. The Fund has engaged Ranson Capital Corporation to provide investment advisory and management services to the Fund. The Investment Advisory Agreement provides for fees to be computed at an annual rate of 0.50% of the Fund's average daily net assets. The adviser elected to waive all investment advisory fees for the period ended January 31, 1997. Certain officers and trustees of the Fund are also officers and directors of the investment adviser. The Fund has adopted a distribution plan (the Plan) pursuant to Rule 12b-1 under the 1940 Act, whereby the Fund shall pay at the annual rate of 0.25% of the average daily net assets of the Fund to Ranson Capital Corporation (Capital), its principal underwriter, for expenses incurred in the distribution of the Fund's shares. Pursuant to the Plan, Capital is entitled to reimbursement each month for its actual expenses incurred in the distribution and promotion of the Fund's shares, including the printing of prospectuses and reports used for sales purposes, expenses of preparation and printing of sales literature and other such distribution related expenses, including any distribution or service fees paid to securities dealers who have executed a dealer sales agreement with Capital. Capital will be reimbursed at an annual rate not to exceed 0.25% of the average daily net assets of the Fund for the prior month. Capital has elected to waive all 12b-1 fees for the period ended January 31, 1997. ND Resources, Inc., (the transfer agent), provides shareholder services for a monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11% of the Fund's net assets on the next $15 million, 0.10% of the Fund's net assets on the next $10 million, and 0.09% of the Fund's net assets in excess of $50 million. ND Resources, Inc. also acts as the Fund's accounting services agent for a monthly fee equal to the sum of a fixed fee of $2,000, and a variable fee equal to 0.05% of the Fund's average daily net assets on an annual basis for the Fund's first $50 million and at a lower rate on the average daily net assets in excess of $50 million. ND Holdings, Inc. has assumed all transfer agent and accounting service fees for the period ended January 31, 1997. Note 5. INVESTMENT SECURITY TRANSACTIONS The cost of purchases and proceeds from the sales of investment securities (excluding short-term securities) aggregated $885,307 and $300,104 respectively, for the period ended January 31, 1997. Note 6. INVESTMENT IN SECURITIES At January 31, 1997, the aggregate cost of securities for federal income tax purposes was $597,513, and the net unrealized appreciation of investments based on the cost was $3,023 which is comprised of $4,010 aggregate gross unrealized appreciation and $987 aggregate gross unrealized depreciation. Financial Highlights Selected per share data and ratios for the period indicated - --------------------------------------------------------------------------------
For The Period Since Inception (Sept. 25, 1996) Through January 31, 1997 ---------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 11.49 ---------------- Income from Investment Operations: Net Investment Income $ .20 Net realized and unrealized gain (loss) on investments .07 ---------------- Total From Investment Operations $ .27 ---------------- Less Distributions: Dividends from net investment income $ (.20) Distributions from net capital gains .00 ---------------- Total Distributions $ (.20) ---------------- NET ASSET VALUE, END OF PERIOD $ 11.56 ================ Total Return 7.11%(A)(B) RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (in thousands) $603 Ratio of net expenses (after expense assumption) to average net assets 0.00%(C) Ratio of net investment income to average net assets 5.10%(B) Portfolio turnover rate 82.10%
(A) Excludes maximum sales charge of 4.25%. (B) Ratio was annualized. (C) During the period ended January 31, 1997, ND Holdings, Inc. assumed expenses of $9,778. If the expenses had not been assumed, the annualized ratio of total expenses to average net assets would have been 7.17%. EX-27.1 2
6 1 THE KANSAS MUNICIPAL FUND 6-MOS JUL-31-1997 JAN-31-1997 126002394 129799321 2482333 312183 0 132593837 1005133 0 685224 1690357 0 0 10644305 10905053 0 0 (2398150) 0 3796927 130903480 37420 3874814 0 (596858) 3315376 (338550) 2075606 5052432 0 (3315376) 0 0 272333 720445 187364 (1445471) 0 0 0 0 328871 0 641178 131407586 12.14 .31 .16 (.31) 0 0 12.30 .90 0 0 Ration of net expenses (after expense assumption) to average net assets, (annualized).
EX-27.2 3
6 2 THE KANSAS INSURED INTERMEDIATE FUND 6-MOS JUL-31-1997 JAN-31-1997 25911808 26596657 540921 41168 0 27178746 0 0 159614 159614 0 0 2199940 2507133 0 0 (345706) 0 684849 27019132 10971 717254 0 (106107) 622118 (39932) 253620 835806 0 (622118) 0 0 59023 396484 30268 (3544791) 0 0 0 0 72289 0 136634 28842691 12.19 .26 .09 (.26) 0 0 12.28 .74 0 0 Ratio of net expenses (after expense assumption) to average net assets, annualized.
EX-27.3 4
6 3 THE NEBRASKA MUNICIPAL FUND 6-MOS JUL-31-1997 JAN-31-1997 27583079 27869610 831736 68660 0 28770006 457917 0 137514 595431 0 0 2530542 1644023 0 0 (636768) 0 286531 28174575 9551 591768 0 (74108) 527211 (94594) 333802 766419 0 (527211) 0 0 1048556 191133 29096 10097617 0 0 0 0 53235 0 140245 21244102 11.00 .27 .13 (.27) 0 0 11.13 .70 0 0 Includes $322,399 of accumulated realized losses inherited from the Heartland Nebraska Tax Free Fund pursuant to the agreement and plan of reorganization. Includes 926,218 shares issued to the shareholders of the Heartland Nebraska Tax Free Fund pursuant to the plan of reorganization in exchange for net assets of $10,299,543. Ratio of net expenses to average net assets, annualized.
EX-27.4 5
6 4 THE OKLAHOMA MUNICIPAL FUND 6-MOS JUL-31-1997 JAN-31-1997 597513 600536 35661 26550 0 662747 28467 0 31191 59658 0 0 52173 0 0 0 (296) 0 3023 603089 476 6474 0 0 6950 (296) 3023 9677 0 (6950) 0 0 51961 5 217 603089 0 0 0 0 670 0 9778 409754 11.49 .20 .07 (.20) 0 0 11.56 .00 0 0 Ratio of net expenses (after expense assumption) to average net assets, annualized.
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