Pamela M. Krill
Madison/Mosaic Legal and Compliance Department
550 Science Drive
Madison, WI 53711
(Name and address of agent for service)
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Item 1. Report to Shareholders.
Semi-annual Report
April 30, 2010
CONSERVATIVE ALLOCATION FUND
MODERATE ALLOCATION FUND
AGGRESSIVE ALLOCATION FUND
CASH RESERVES FUND
BOND FUND
HIGH INCOME FUND
DIVERSIFIED INCOME FUND
EQUITY INCOME FUND
LARGE CAP VALUE FUND
LARGE CAP GROWTH FUND
MID CAP FUND
SMALL CAP FUND
INTERNATIONAL STOCK FUND
This material is for reporting purposes only and shall not be used in connection with a solicitation, offer or any proposed sale of securities unless preceded or accompanied by a prospectus.
MEMBERS Mutual Funds | April 30, 2010
Table of Contents
| | Page |
| Review of Period | |
| MEMBERS Mutual Funds Performance | 2 |
| Economic Overview | 7 |
| Conservative Allocation Fund | 8 |
| Moderate Allocation Fund | 9 |
| Aggressive Allocation Fund | 10 |
| Cash Reserves Fund | 11 |
| Bond Fund | 12 |
| High Income Fund | 13 |
| Diversified Income Fund | 14 |
| Equity Income Fund | 15 |
| Large Cap Value Fund | 17 |
| Large Cap Growth Fund | 18 |
| Mid Cap Fund | 19 |
| Small Cap Fund | 20 |
| International Stock Fund | 22 |
| Benchmark Descriptions | 24 |
| Portfolios of Investments | |
| Conservative Allocation Fund | 25 |
| Moderate Allocation Fund | 26 |
| Aggressive Allocation Fund | 27 |
| Cash Reserves Fund | 28 |
| Bond Fund | 29 |
| High Income Fund | 32 |
| Diversified Income Fund | 37 |
| Equity Income Fund | 41 |
| Large Cap Value Fund | 43 |
| Large Cap Growth Fund | 44 |
| Mid Cap Fund | 45 |
| Small Cap Fund | 46 |
| International Stock Fund | 48 |
| Financial Statements | |
| Statements of Assets and Liabilities | 50 |
| Statements of Operations | 54 |
| Statements of Changes in Net Assets | 58 |
| Financial Highlights | 64 |
| Notes to Financial Statements | 83 |
| Other Information | 96 |
Nondeposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by any financial institution. For more complete information about MEMBERS Mutual Funds, including charges and expenses, request a prospectus from your financial advisor or from MEMBERS Mutual Funds, P.O. Box 8390, Boston, MA 02266-8390. Consider the investment objectives, risks, and charges and expenses of any fund carefully before investing. The prospectus contains this and other information about the investment company. Nothing in this report represents a recommendation of a security by the investment adviser. Portfolio holdings may have changed since the date of this report.
MEMBERS Mutual Funds | April 30, 2010
| MEMBERS MUTUAL FUNDS PERFORMANCE |
| | Average Annual Total Returns | |
| | | As of April 30, 2010 | As of March 31, 2010 | |
| | Ticker Symbol | One Month | Three Months | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Expense Ratio2 |
| FIXED INCOME FUNDS - maximum sales charge 4.5% | | | | | | | | | | | | | | | | |
| Cash Reserves Fund - No Sales Charge | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MFAXX | 0.00% | 0.00% | 0.00% | 0.00% | 1.55% | 2.54% | 2.41% | 2.88% | 0.00% | 0.00% | 1.68% | 2.57% | 2.46% | 2.90% | 0.55% |
| Class B | Without Sales Charge | MFBXX | 0.00% | 0.00% | 0.00% | 0.00% | 1.15% | 1.99% | 1.77% | 2.21% | 0.00% | 0.00% | 1.26% | 2.01% | 1.81% | 2.23% | 1.30% |
| | With Sales Charge | | -4.50% | -4.50% | -4.50% | -4.50% | 0.00% | 1.61% | 1.77% | 2.21% | -4.50% | -4.50% | 0.11% | 1.64% | 1.81% | 2.23% | |
| 90-day U.S. T-Bill (Citigroup/Salomon) | | 0.01% | 0.02% | 0.03% | 0.12% | 1.66% | 2.72% | 2.65% | 3.09% | 0.02% | 0.13% | 1.80% | 2.76% | 2.70% | 3.11% | |
| | | | | | | | | | | | | | | | | |
| Bond Fund - Inception Date 6/30/2006 for Class Y | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MBOAX | 0.78% | 0.60% | 2.11% | 4.97% | 4.69% | 4.00% | 4.96% | 4.72% | 1.31% | 4.21% | 4.58% | 4.09% | 4.83% | 4.69% | 0.90% |
| | With Sales Charge | | -3.71% | -3.95% | -2.48% | 0.22% | 3.10% | 3.05% | 4.48% | 4.33% | -3.23% | -0.51% | 2.99% | 3.13% | 4.35% | 4.30% | |
| Class B | Without Sales Charge | MBOBX | 0.72% | 0.41% | 1.76% | 4.19% | 3.91% | 3.22% | 4.17% | 3.94% | 1.03% | 3.43% | 3.80% | 3.31% | 4.05% | 3.90% | 1.65% |
| | With Sales Charge | | -3.78% | -4.09% | -2.74% | -0.31% | 2.82% | 2.86% | 4.17% | 3.94% | -3.47% | -1.07% | 2.71% | 2.96% | 4.05% | 3.90% | |
Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index6 | | 1.00% | 1.18% | 2.74% | 7.84% | 6.44% | 5.46% | 6.49% | 6.04% | 1.72% | 6.95% | 6.28% | 5.54% | 6.34% | 6.00% | |
| Class Y | Without Sales Charge | | 0.80% | 0.57% | 2.09% | 5.24% | 4.96% | N/A | N/A | 5.41% | 1.27% | 4.36% | 4.81% | N/A | N/A | 5.30% | 0.65% |
Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index6 | | 1.00% | 1.18% | 2.74% | 7.84% | 6.44% | N/A | N/A | 7.04% | 1.72% | 6.95% | 6.28% | N/A | N/A | 6.91% | |
| | | | | | | | | | | | | | | | | |
| High Income Fund - Inception Date 6/30/2006 for Class Y | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MHNAX | 1.94% | 4.33% | 4.87% | 22.66% | 4.76% | 6.58% | 5.71% | 5.09% | 2.87% | 25.76% | 4.57% | 5.96% | 5.54% | 4.96% | 1.00% |
| | With Sales Charge | | -2.62% | -0.39% | 0.13% | 17.09% | 3.15% | 5.61% | 5.22% | 4.70% | -1.78% | 20.02% | 3.00% | 4.98% | 5.06% | 4.57% | |
| Class B | Without Sales Charge | MHNBX | 1.71% | 3.93% | 4.56% | 21.66% | 3.93% | 5.78% | 4.91% | 4.31% | 2.80% | 24.87% | 3.80% | 5.19% | 4.76% | 4.20% | 1.75% |
| | With Sales Charge | | -2.79% | -0.57% | 0.06% | 17.16% | 2.93% | 5.47% | 4.91% | 4.31% | -1.70% | 20.37% | 2.80% | 4.89% | 4.76% | 4.20% | |
Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index | | 2.27% | 5.54% | 7.13% | 44.21% | 7.18% | 8.42% | 7.59% | 6.42% | 4.75% | 56.95% | 6.85% | 7.70% | 7.34% | 6.27% | |
| Class Y | Without Sales Charge | | 1.82% | 4.25% | 4.81% | 22.83% | 4.96% | N/A | N/A | 6.90% | 2.94% | 26.12% | 4.87% | N/A | N/A | 6.54% | 0.75% |
Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index | | 2.27% | 5.54% | 7.13% | 44.21% | 7.18% | N/A | N/A | 9.00% | 4.75% | 56.95% | 6.85% | N/A | N/A | 8.56% | |
Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Visit www.membersfunds.com for performance data current to the most recent month-end. This piece must be accompanied or preceded by a current MEMBERS Mutual Funds prospectus. Mosaic Funds Distributor, LLC. April 30, 2010.
Not Part of the Semi-annual Report
MEMBERS Mutual Funds | MEMBERS Mutual Funds Performance (continued) | April 30, 2010
| MEMBERS MUTUAL FUNDS PERFORMANCE (continued) | Average Annual Total Returns | |
| | | As of April 30, 2010 | As of March 31, 2010 | |
| | Ticker Symbol | One Month | Three Months | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Expense Ratio2 |
| HYBRID FUNDS - maximum sales charge 5.75% | | | | | | | | | | | | | | | | |
| Diversified Income Fund | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MBLAX | 1.29% | 4.95% | 4.65% | 20.60% | -0.18% | 3.22% | 2.34% | 4.35% | 3.31% | 22.33% | -0.02% | 2.81% | 2.05% | 4.27% | 1.10% |
| | With Sales Charge | | -4.51% | -1.05% | -1.40% | 13.72% | -2.14% | 2.01% | 1.73% | 3.85% | -2.66% | 15.32% | -1.98% | 1.60% | 1.45% | 3.77% | |
| Class B | Without Sales Charge | MBLNX | 1.22% | 4.83% | 4.47% | 19.70% | -0.91% | 2.45% | 1.58% | 3.58% | 3.20% | 21.55% | -0.75% | 2.05% | 1.29% | 3.50% | 1.85% |
| | With Sales Charge | | -3.28% | 0.33% | -0.03% | 15.20% | -1.90% | 2.12% | 1.58% | 3.58% | -1.30% | 17.05% | -1.73% | 1.72% | 1.29% | 3.50% | |
Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index6 | | 1.00% | 1.18% | 2.74% | 7.84% | 6.44% | 5.46% | 6.49% | 6.04% | 1.72% | 6.95% | 6.28% | 5.54% | 6.34% | 6.00% | |
| Russell 1000¨ Index | | 1.85% | 11.67% | 7.65% | 40.21% | -4.71% | 3.07% | 0.16% | 4.05% | 5.70% | 51.60% | -3.98% | 2.31% | -0.36% | 3.92% | |
| Conservative Allocation Fund - Inception Date 6/30/2006 for Class A and B, 2/29/2008 for Class C | | | | | | | | | | | |
| Class A | Without Sales Charge | MCNAX | 0.93% | 3.29% | 3.18% | 18.43% | -0.44% | N/A | N/A | 2.08% | 2.22% | 23.02% | -0.29% | N/A | N/A | 1.88% | 1.39% |
| | With Sales Charge | | -4.88% | -2.66% | -2.76% | 11.57% | -2.38% | N/A | N/A | 0.52% | -3.66% | 15.97% | -2.23% | N/A | N/A | 0.28% | |
| Class B | Without Sales Charge | MCNBX | 0.83% | 3.10% | 2.88% | 17.55% | -1.19% | N/A | N/A | 1.33% | 2.03% | 22.07% | -1.03% | N/A | N/A | 1.14% | 2.14% |
| | With Sales Charge | | -3.67% | -1.40% | -1.62% | 13.05% | -2.27% | N/A | N/A | 0.59% | -2.47% | 17.57% | -2.12% | N/A | N/A | 0.39% | |
Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index6 | | 1.00% | 1.18% | 2.74% | 7.84% | 6.44% | N/A | N/A | 7.04% | 1.72% | 6.95% | 6.28% | N/A | N/A | 6.91% | |
Conservative Allocation Custom Index3 | | 1.21% | 4.58% | 4.27% | 18.74% | 2.86% | N/A | N/A | 5.24% | 3.02% | 21.91% | 3.06% | N/A | N/A | 5.02% | |
| Class C | Without Sales Charge | MCOCX | 0.83% | 3.09% | 2.88% | 17.53% | N/A | N/A | N/A | -1.02% | 2.03% | 22.20% | N/A | N/A | N/A | -1.45% | 2.14% |
| | With Sales Charge | | -0.17% | 2.09% | 1.88% | 16.53% | N/A | N/A | N/A | -1.02% | 1.03% | 21.20% | N/A | N/A | N/A | -1.45% | |
Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index6 | | 1.00% | 1.18% | 2.74% | 7.84% | N/A | N/A | N/A | 5.83% | 1.72% | 6.95% | N/A | N/A | N/A | 5.56% | |
Conservative Allocation Custom Index3 | | 1.21% | 4.58% | 4.27% | 18.74% | N/A | N/A | N/A | 3.16% | 3.02% | 21.91% | N/A | N/A | N/A | 2.70% | |
Moderate Allocation Fund - Inception Date 6/30/2006 for Class A and B, 2/29/2008 for Class C | | | | | | | | | | | | |
| Class A | Without Sales Charge | MMDAX | 1.19% | 5.52% | 4.34% | 24.25% | -4.10% | N/A | N/A | 0.14% | 3.12% | 31.90% | -3.73% | N/A | N/A | -0.17% | 1.53% |
| | With Sales Charge | | -4.58% | -0.53% | -1.68% | 17.07% | -5.98% | N/A | N/A | -1.39% | -2.83% | 24.25% | -5.61% | N/A | N/A | -1.73% | |
| Class B | Without Sales Charge | MMDRX | 1.08% | 5.18% | 3.89% | 23.24% | -4.86% | N/A | N/A | -0.63% | 2.78% | 30.81% | -4.49% | N/A | N/A | -0.93% | 2.28% |
| | With Sales Charge | | -3.42% | 0.68% | -0.61% | 18.74% | -5.94% | N/A | N/A | -1.38% | -1.72% | 26.31% | -5.58% | N/A | N/A | -1.69% | |
| S&P 500 Index | | 1.58% | 11.05% | 7.05% | 38.84% | -5.05% | N/A | N/A | 0.32% | 5.39% | 49.77% | -4.17% | N/A | N/A | -0.09% | |
Moderate Allocation Custom Index4 | | 1.11% | 6.50% | 4.73% | 27.14% | -0.07% | N/A | N/A | 3.76% | 3.58% | 34.22% | 0.45% | N/A | N/A | 3.53% | |
| Class C | Without Sales Charge | MMDCX | 1.08% | 5.29% | 4.00% | 23.37% | N/A | N/A | N/A | -4.71% | 2.89% | 30.77% | N/A | N/A | N/A | -5.38% | 2.28% |
| | With Sales Charge | | 0.08% | 4.29% | 3.00% | 22.37% | N/A | N/A | N/A | -4.71% | 1.89% | 29.77% | N/A | N/A | N/A | -5.38% | |
| S&P 500 Index | | 1.58% | 11.05% | 7.05% | 38.84% | N/A | N/A | N/A | -4.14% | 5.39% | 49.77% | N/A | N/A | N/A | -5.01% | |
Moderate Allocation Custom Index 4 | | 1.11% | 6.50% | 4.73% | 27.14% | N/A | N/A | N/A | 0.85% | 3.58% | 34.22% | N/A | N/A | N/A | 0.35% | |
Not Part of the Semi-annual Report
MEMBERS Mutual Funds | MEMBERS Mutual Funds Performance ( continued) | April 30, 2010
| MEMBERS MUTUAL FUNDS PERFORMANCE (continued) | Average Annual Total Returns | |
| | | As of April 30, 2010 | As of March 31, 2010 | |
| | Ticker Symbol | One Month | Three Months | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Expense Ratio2 |
| Aggressive Allocation Fund - Inception Date 6/30/2006 for Class A and B, 2/29/2008 for Class C | | | | | | | | | | | | |
| Class A | Without Sales Charge | MAGSX | 1.25% | 7.23% | 4.58% | 31.10% | -7.56% | N/A | N/A | -1.76% | 3.29% | 43.03% | -6.92% | N/A | N/A | -2.12% | 1.69% |
| | With Sales Charge | | -4.61% | 1.02% | -1.44% | 23.54% | -9.36% | N/A | N/A | -3.27% | -2.66% | 34.79% | -8.74% | N/A | N/A | -3.66% | |
| Class B | Without Sales Charge | MAGBX | 1.14% | 7.01% | 4.24% | 30.00% | -8.26% | N/A | N/A | -2.51% | 3.06% | 42.06% | -7.62% | N/A | N/A | -2.86% | 2.44% |
| | With Sales Charge | | -3.36% | 2.51% | -0.26% | 25.50% | -9.33% | N/A | N/A | -3.26% | -1.44% | 37.56% | -8.70% | N/A | N/A | -3.62% | |
| S&P 500 Index | | 1.58% | 11.05% | 7.05% | 38.84% | -5.05% | N/A | N/A | 0.32% | 5.39% | 49.77% | -4.17% | N/A | N/A | -0.09% | |
Aggressive Allocation Custom Index5 | | 0.82% | 8.01% | 4.70% | 36.04% | -3.31% | N/A | N/A | 2.08% | 3.85% | 48.02% | -2.42% | N/A | N/A | 1.91% | |
| Class C | Without Sales Charge | MAACX | 1.14% | 7.00% | 4.24% | 29.96% | N/A | N/A | N/A | -8.20% | 3.06% | 41.99% | N/A | N/A | N/A | -9.00% | 2.44% |
| | With Sales Charge | | 0.14% | 6.00% | 3.24% | 28.96% | N/A | N/A | N/A | -8.20% | 2.06% | 40.99% | N/A | N/A | N/A | -9.00% | |
| S&P 500 Index | | 1.58% | 11.05% | 7.05% | 38.84% | N/A | N/A | N/A | -4.14% | 5.39% | 49.77% | N/A | N/A | N/A | -5.01% | |
Aggressive Allocation Custom Index 5 | | 0.82% | 8.01% | 4.70% | 36.04% | N/A | N/A | N/A | -2.01% | 3.85% | 48.02% | N/A | N/A | N/A | -2.47% | |
| | | | | | | | | | | | | | | | | |
| EQUITY FUNDS - maximum sales charge 5.75% | | | | | | | | | | | | | | | | |
| Equity Income Fund- Inception Date 10/31/09 | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MENAX | 0.38% | 3.77% | 3.66% | N/A | N/A | N/A | N/A | 4.70% | 3.27% | N/A | N/A | N/A | N/A | 4.30% | 1.25% |
| | With Sales Charge | | -5.39% | -2.20% | -2.30% | N/A | N/A | N/A | N/A | -1.32% | -2.67% | N/A | N/A | N/A | N/A | -1.70% | |
| Class Y | Without Sales Charge | | 0.38% | 3.76% | 3.66% | N/A | N/A | N/A | N/A | 4.80% | 3.26% | N/A | N/A | N/A | N/A | 4.40% | 1.00% |
| S&P 500 Index | | 1.58% | 11.05% | 7.05% | N/A | N/A | N/A | N/A | 15.66% | 5.39% | N/A | N/A | N/A | N/A | 13.87% | |
| CBOE BuyWrite Monthly Index | | -0.23% | 5.17% | 0.85% | N/A | N/A | N/A | N/A | 9.61% | 1.08% | N/A | N/A | N/A | N/A | 9.86% | |
| | | | | | | | | | | | | | | | | | |
| Large Cap Value Fund - Inception Date 6/30/2006 for Class Y | | | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MGWAX | 0.77% | 8.08% | 4.90% | 32.43% | -9.17% | 0.19% | -0.67% | 2.49% | 4.10% | 43.37% | -8.28% | -0.28% | -0.74% | 2.44% | 1.16% |
| | With Sales Charge | | -5.00% | 1.90% | -1.09% | 24.81% | -10.94% | -0.99% | -1.26% | 2.00% | -1.85% | 35.18% | -10.07% | -1.45% | -1.32% | 1.95% | |
| Class B | Without Sales Charge | MGWBX | 0.69% | 7.90% | 4.69% | 31.41% | -9.85% | -0.55% | -1.42% | 1.72% | 3.97% | 42.37% | -8.95% | -1.01% | -1.47% | 1.68% | 1.91% |
| | With Sales Charge | | -3.81% | 3.40% | 0.19% | 26.91% | -10.88% | -0.94% | -1.42% | 1.72% | -0.53% | 37.87% | -9.99% | -1.39% | -1.47% | 1.68% | |
| Russell 1000¨ Value Index | | 2.59% | 12.72% | 9.55% | 42.28% | -7.66% | 1.93% | 3.48% | 4.83% | 6.78% | 53.56% | -7.33% | 1.05% | 3.10% | 4.65% | |
| Class Y | Without Sales Charge | | 0.77% | 8.08% | 5.00% | 32.77% | -8.94% | N/A | N/A | -2.58% | 4.19% | 43.73% | -8.03% | N/A | N/A | -2.83% | 0.95% |
| Russell 1000¨ Value Index | | 2.59% | 12.72% | 9.55% | 42.28% | -7.66% | N/A | N/A | -1.40% | 6.78% | 53.56% | -7.33% | N/A | N/A | -2.10% | |
Not Part of the Semi-annual Report
MEMBERS Mutual Funds | MEMBERS Mutual Funds Performance (continued) | April 30, 2010
| MEMBERS MUTUAL FUNDS PERFORMANCE (continued) | Average Annual Total Returns | |
| | | As of April 30, 2010 | Aas of March 31, 2010 | |
| | Ticker Symbol | One Month | Three Months | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Expense Ratio2 |
| Large Cap Growth Fund - Inception Date 6/30/2006 for Class Y | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MCAAX | 1.71% | 8.86% | 4.13% | 31.55% | -1.49% | 2.71% | -0.22% | 3.41% | 2.38% | 40.22% | -0.65% | 1.86% | -0.86% | 3.30% | 1.20% |
| | With Sales Charge | | -4.13% | 2.62% | -1.85% | 24.00% | -3.41% | 1.51% | -0.81% | 2.92% | -3.50% | 32.13% | -2.58% | 0.66% | -1.45% | 2.80% | |
| Class B | Without Sales Charge | MCPBX | 1.63% | 8.62% | 3.85% | 30.61% | -2.23% | 1.94% | -0.96% | 2.66% | 2.19% | 39.24% | -1.41% | 1.10% | -1.60% | 2.54% | 1.95% |
| | With Sales Charge | | -2.87% | 4.12% | -0.65% | 26.11% | -3.38% | 1.57% | -0.96% | 2.66% | -2.31% | 34.74% | -2.58% | 0.71% | -1.60% | 2.54% | |
| Russell 1000¨ Growth Index | | 1.12% | 10.64% | 5.81% | 38.16% | -1.93% | 4.05% | -3.64% | 2.50% | 4.65% | 49.75% | -0.78% | 3.42% | -4.21% | 2.42% | |
| Class Y | Without Sales Charge | | 1.70% | 8.89% | 4.25% | 31.95% | -1.25% | N/A | N/A | 2.53% | 2.51% | 40.60% | -0.40% | N/A | N/A | 2.13% | 0.95% |
| Russell 1000¨ Growth Index | | 1.12% | 10.64% | 5.81% | 38.16% | -1.93% | N/A | N/A | 2.45% | 4.65% | 49.75% | -0.78% | N/A | N/A | 2.20% | |
| | | | | | | | | | | | | | | | | | |
| Mid Cap Fund - Inception Date 2/29/2000 for Class A and B, 6/30/2006 for Class Y | | | | | | | | | | | | |
| Class A | Without Sales Charge | MERAX | 4.29% | 13.42% | 9.18% | 38.15% | -5.69% | 3.94% | -3.72% | -5.10% | 4.68% | 61.56% | -5.59% | 2.69% | -5.28% | -5.54% | 1.40% |
| | With Sales Charge | | -1.69% | 6.97 | 2.82% | 30.14% | -7.55% | 2.70% | -4.29% | -5.65% | -1.41% | 52.32% | -7.44% | 1.49% | -5.84% | -6.09% | |
| Class B | Without Sales Charge | MERBX | 4.05% | 13.00% | 8.67% | 36.80% | -6.48% | 3.11% | -4.47% | -5.83% | 4.44% | 59.88% | -6.33% | 1.90% | -6.00% | -6.24% | 2.15% |
| | With Sales Charge | | -0.45% | 8.50% | 4.17% | 32.30% | -7.58% | 2.75% | -4.47% | -5.83% | -0.06% | 55.38% | -7.42% | 1.53% | -6.00% | -6.24% | |
| Russell Midcap¨ Index | | 3.76% | 16.65% | 12.76% | 50.83% | -3.32% | 5.65% | 5.74% | 5.97% | 8.67% | 67.71% | -3.30% | 4.20% | 0.048 | 5.63% | |
| Russell Midcap¨ Growth Index | | 2.97% | 15.47% | 10.87% | 46.95% | -2.49% | 5.74% | -0.39% | -1.03% | 7.67% | 63.00% | -2.04% | 4.27% | -1.69% | -1.32% | |
| Class Y | Without Sales Charge | | 4.26% | 13.29% | 8.89% | 38.35% | -5.47% | N/A | N/A | 0.36% | 4.44% | 61.60% | -5.36% | N/A | N/A | -0.74% | 1.15% |
| Russell Midcap¨ Index | | 3.76% | 16.65% | 12.76% | 50.83% | -3.32% | N/A | N/A | 1.99% | 8.67% | 67.71% | -3.30% | N/A | N/A | 1.03% | |
| Russell Midcap¨ Growth Index | | 2.97% | 15.47% | 10.87% | 46.95% | -2.49% | N/A | N/A | 2.21% | 7.67% | 63.00% | -2.04% | N/A | N/A | 1.47% | |
| | | | | | | | | | | | | | | | | | |
| Small Cap Fund - Inception Date 12/27/2006 for Class A and B, 1/9/2007 for Class Y | | | | | | | | | | | | |
| Class A | Without Sales Charge | MASVX | 5.03% | 16.25% | 15.59% | 49.89% | -0.45% | N/A | N/A | 1.46% | 10.06% | 66.62% | -1.41% | N/A | N/A | -0.01% | 1.50% |
| | With Sales Charge | | -0.97% | 9.53% | 8.95% | 41.21% | -2.40% | N/A | N/A | -0.32% | 3.73% | 56.96% | -3.35% | N/A | N/A | -1.81% | |
| Class B | Without Sales Charge | MBSVX | 5.09% | 16.06% | 15.26% | 48.82% | -0.98% | N/A | N/A | 0.89% | 9.68% | 65.18% | -1.98% | N/A | N/A | -0.61% | 2.25% |
| | With Sales Charge | | 0.59% | 11.56% | 10.76% | 44.32% | -2.13% | N/A | N/A | 0.01% | 5.18% | 60.68% | -3.12% | N/A | N/A | -1.52% | |
| Russell 2000¨ Index | | 5.66% | 19.41% | 15.01% | 48.95% | -2.79% | N/A | N/A | -1.42% | 8.85% | 62.76% | -3.99% | N/A | N/A | -3.11% | |
| Russell 2000¨ Value Index | | 7.00% | 21.27% | 17.72% | 52.44% | -3.89% | N/A | N/A | -2.79% | 10.02% | 65.07% | -5.70% | N/A | N/A | -4.85% | |
| Class Y | Without Sales Charge | | 5.15% | 16.31% | 15.65% | 50.21% | -0.18% | N/A | N/A | 2.31% | 9.98% | 66.86% | -1.19% | N/A | N/A | 0.79% | 1.25% |
| Russell 2000¨ Index | | 5.66% | 19.41% | 15.01% | 48.95% | -2.79% | N/A | N/A | -1.03% | 8.85% | 62.76% | -3.99% | N/A | N/A | -2.73% | |
| Russell 2000¨ Value Index | | 7.00% | 21.27% | 17.72% | 52.44% | -3.89% | N/A | N/A | -2.34% | 10.02% | 65.07% | -5.70% | N/A | N/A | -4.42% | |
Not Part of the Semi-annual Report
MEMBERS Mutual Funds | MEMBERS Mutual Funds Performance (concluded) | April 30, 2010
| MEMBERS MUTUAL FUNDS PERFORMANCE (concluded) | Average Annual Total Returns | |
| | | Monthly as of April 30, 2010 | Quarterly as of March 31, 2010 | |
| | Ticker Symbol | One Month | Three Months | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Year-to- Date | One Year | Three Years | Five Years | Ten Years | Since Inception1 | Expense Ratio2 |
| International Stock Fund - Inception Date 6/30/2006 for Class Y | | | | | | | | | | | | | | |
| Class A | Without Sales Charge | MINAX | -2.15% | 3.20% | -1.09% | 30.80% | -6.63% | 4.65% | 3.97% | 4.50% | 1.09% | 47.64% | -4.87% | 4.57% | 3.59% | 4.71% | 1.60% |
| | With Sales Charge | | -7.75% | -2.72% | -6.80% | 23.25% | -8.45% | 3.42% | 3.36% | 4.00% | -4.75% | 39.19% | -6.73% | 3.34% | 2.98% | 4.21% | |
| Class B | Without Sales Charge | MINBX | -2.18% | 3.03% | -1.40% | 29.89% | -7.32% | 3.86% | 3.20% | 3.72% | 0.80% | 46.45% | -5.58% | 3.78% | 2.82% | 3.93% | 2.35% |
| | With Sales Charge | | -6.58% | -1.47% | -5.84% | 25.39% | -8.19% | 3.56% | 3.20% | 3.72% | -3.70% | 41.95% | -6.46% | 3.48% | 2.82% | 3.93% | |
| MSCI EAFE Index | | -1.73% | 3.76% | -0.80% | 35.02% | -8.45% | 4.34% | 2.05% | 4.83% | 0.94% | 55.20% | -6.55% | 4.24% | 1.68% | 5.02% | |
| Class Y | Without Sales Charge | | -2.15% | 3.31% | -0.99% | 31.13% | -6.39% | N/A | N/A | -0.22% | 1.19% | 48.01% | -4.61% | N/A | N/A | 0.36% | 1.35% |
| MSCI EAFE Index | | -1.73% | 3.76% | -0.80% | 35.02% | -8.45% | N/A | N/A | -0.18% | 0.94% | 55.20% | -6.55% | N/A | N/A | 0.28% | |
| 1 | Fund Inception Date is 12/29/1997 unless noted. |
| 2 | See Fund prospectus for further details on annual fund operating expenses. |
| 3 | Conservative Allocation Custom Index consists of 65% Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index, 30% Russell 3000 Index and 5% MSCI EAFE Index. |
| 4 | Moderate Allocation Custom Index consists of 45% Russell 3000 Index, 40% Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index and 15% MSCI EAFE Index. |
| 5 | Aggressive Allocation Custom Index consists of 55% Russell 3000 Index, 15% Bank of America Merrill Lynch U.S. Corp. Govt. & Mtg. Index and 30% MSCI EAFE Index. |
| 6 | Bank of America Merrill Lynch US Corp, Govt & Mortg Index is prior Merrill Lynch US Domestic Master Index. |
Not Part of the Semi-annual Report
MEMBERS Mutual Funds | April 30, 2010
Review of Period
ECONOMIC OVERVIEW
The economic climate over the six-month period of this report was characterized by considerable optimism fueled by positive economic news, even though these improvements typically came from deeply depressed levels. While unprecedented economic stimulus seemed to be gaining traction around the world, this was of little comfort to those represented in the persistently high domestic unemployment numbers, or among the increasing percentage of U.S. homeowners whose mortgages showed a larger balance than the value of their homes.
Despite the hurdles of high unemployment and a still-troubled housing market, the broad domestic indices were up solidly. The S&P 500 rose 15.7% over the period, considerably stronger than the broad international index, MSCI EAFE, which rose just 2.7%. Domestically, smaller stocks outperformed larger stocks, a part of the trend which rewarded higher-risk assets. Bonds were generally positive as well as they followed the same quality trend as stocks, with the high-yield market continuing to outpace lower-risk bond assets.
Optimism over a strong rebound in corporate earnings was a key driver for the stock market as investors who had moved to the sidelines, earning little in cash, were enticed back to stocks. Cyclical sectors excelled during this upturn with industrial and consumer discretionary stocks leading the way. The Technology Sector was the leader from the market bottom, however, profit taking and growth concerns led to weaker relative performance in the early months of 2010. Defensively oriented sectors such as Health Care, Utilities and Consumer Staples were among the laggards.
As we look towards the remainder of 2010, we remain somewhat optimistic about the domestic economy. We will be carefully monitoring trouble spots around the world, most notably the sovereign debt crisis in Greece. A general concern for us is the manner in which the market, still fresh from the deep losses of 2008 and early 2009, seems to be complacent regarding risk. As a result, we would look at a market correction as a healthy and natural outcome of the steep recovery in stocks since the market bottom of March, 2009. It might also be the spark needed to shift investors from the low-quality stocks and bonds that have led the market over the past year towards the more fundamentally sound investments which are more typical of our holdings in most of our MEMBERS funds.
MEMBERS Mutual Funds | April 30, 2010
CONSERVATIVE ALLOCATION FUND
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Conservative Allocation Fund invests primarily in shares of registered investment companies (the "underlying funds"). The fund will be diversified among a number of asset classes and its allocation among underlying funds will be based on an asset allocation model developed by Madison Asset Management, LLC ("Madison"), the fund’s investment adviser.
The team may use multiple analytical approaches to determine the appropriate asset allocation:
| | •Asset allocation optimization analysis – considers the the degree to which returns in different asset classes do or do not move together, and the fund’s aim to achieve a favorable overall risk profile for any targeted portfolio return. |
| | •Scenario analysis – historical and expected return data is analyzed to model how individual asset classes and combinations of asset classes would affect the fund under different economic and market conditions. |
| | •Fundamental analysis – draws upon Madison’s investment teams to judge each asset class against current and forecasted market conditions. Economic, industry and security analysis is used to develop return and risk expectations that may influence asset class selection. |
In addition, Madison employs a risk management sleeve within the fund for the purpose of risk reduction when and if conditions exist that require reduction of equity exposure.
The six-month period ended April 30, 2010 was a smooth investing environment that resulted in relatively high returns with low volatility. Improving U.S. economic and employment related data, in addition to continued accommodation by the Federal Reserve, gave investors the confidence they needed to push markets higher. In terms of major asset class performance, U.S. stocks, as measured by the S&P 500 Index, led the way with a strong 15.66% return. Returns on international stocks were quite lackluster in comparison, with the developed markets MSCI EAFE Index gaining 2.68%. U.S. core bonds returned 2.54% as measured by the Barclays U.S. Aggregate Bond Index.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Bond Funds | 66% |
| Foreign Bond Funds | 6% |
| Foreign Stock Funds | 5% |
| Money Market Funds and Other Net Assets | 1% |
| Stock Funds | 22% |
For the six-month period ended April 30, 2010, the MEMBERS Conservative Allocation Fund (Class A shares at net asset value) returned 6.13%, underperforming the Conservative Allocation Fund Custom Index return of 6.86%. The underperformance of our core bond positions explained the majority of the modest shortfall. Additionally, our focus on large cap equities was a detriment to performance, as small and mid cap stocks outperformed larger names by a fairly wide margin over the period.
Contributors to fund performance included: MEMBERS Large Cap Growth Fund Class Y which returned 13.60% for the period, MEMBERS Large Cap Value Fund Class Y which returned 12.94%, and Templeton Global Bond Fund which returned 11.16%.
Detractors from fund performance included: MEMBERS Bond Fund Class Y which returned 1.47% for the period, Madison Mosaic Institutional Bond Fund which returned 1.53%, and MEMBERS International Stock Fund Class Y which returned 3.19%.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Conservative Allocation Fund (concluded)
Over the period we transitioned the portfolio to a more conservative posture. We reduced our direct international equity position by over 40% and added to our fixed income holdings. New positions added to the fund included MEMBERS Equity Income Fund Class Y (a covered call strategy) and Calamos Growth & Income Fund. We consider both funds defensive equity positions. We also increased our exposure to investment grade corporate bonds by initiating a position in PIMCO Investment Grade Corporate Bond Fund. Lastly, Oppenheimer International Bond Fund was sold in favor of Templeton Global Bond Fund, and our position in Nakoma Absolute Return Fund was eliminated in favor of traditional fixed income investments.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Moderate Allocation Fund invests primarily in shares of registered investment companies (the "underlying funds"). The fund will be diversified among a number of asset classes and its allocation among underlying funds will be based on an asset allocation model developed by Madison Asset Management, LLC ("Madison"), the fund’s investment adviser.
The team may use multiple analytical approaches to determine the appropriate asset allocation:
| | •Asset allocation optimization analysis – considers the degree to which returns in different asset classes do or do not move together, and the fund’s aim to achieve a favorable overall risk profile for any targeted portfolio return. |
| | •Scenario analysis – historical and expected return data is analyzed to model how individual asset classes and combinations of asset classes would affect the fund under different economic and market conditions. |
| | •Fundamental analysis – draws upon Madison’s investment teams to judge each asset class against current and forecasted market conditions. Economic, industry and security analysis is used to develop return and risk expectations that may influence asset class selection. |
In addition, Madison employs a risk management sleeve within the fund for the purpose of risk reduction when and if conditions exist that require reduction of equity exposure.
The six-month period ended April 30, 2010 was a smooth investing environment that resulted in relatively high returns with low volatility. Improving economic and employment related data, in addition to continued accommodation by the Federal Reserve, gave investors the confidence they needed to push markets higher. In terms of major asset class performance, U.S. stocks, as measured by the S&P 500 Index, led the way with a strong 15.66% return. Returns on international stocks were quite lackluster in comparison, with the developed markets MSCI EAFE Index gaining 2.68%. U.S. core bonds returned 2.54% as measured by the Barclays U.S. Aggregate Bond Index.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Bond Funds | 40% |
| Foreign Bond Funds | 5% |
| Foreign Stock Funds | 8% |
| Money Market Funds and Other Net Assets | 1% |
| Stock Funds | 46% |
For the six-month period ended April 30, 2010, the MEMBERS Moderate Allocation Fund (Class A shares at net asset value) returned 8.66%, modestly underperforming the Moderate
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Moderate Allocation Fund (concluded)
Allocation Fund Custom Index return of 9.18%. The underperformance of our core bond positions and our focus on large cap equities were the main detriments to performance, as small and mid cap stocks outperformed larger names by a fairly wide margin over the period.
Contributors to fund performance included: Fairholme Fund which returned 28.87% for the period, MEMBERS Small Cap Fund Class Y which returned 24.44%, MEMBERS Mid Cap Fund Class Y which returned 18.00%, and MEMBERS Large Cap Growth Fund Class Y which returned 13.60%.
Detractors from fund performance included: MEMBERS Bond Fund Class Y which returned 1.47% for the period, Madison Mosaic Institutional Bond Fund which returned 1.53%, and MEMBERS International Stock Fund Class Y which returned 3.19%.
Over the period we transitioned the portfolio to a more conservative posture. We reduced our direct international equity position by nearly 50%, trimmed our small cap position, and added to our fixed income holdings. New positions added to the fund included MEMBERS Equity Income Fund Class Y (a covered call strategy) and Calamos Growth & Income. We consider both funds defensive equity positions. We also increased our exposure to investment grade corporate bonds by initiating a position in PIMCO Investment Grade Corporate Bond Fund. Lastly, Oppenheimer International Bond Fund was sold in favor of Templeton Global Bond Fund, and our position in Nakoma Absolute Return Fund was eliminated in favor of traditional fixed income investments.
AGGRESSIVE ALLOCATION FUND
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Aggressive Allocation Fund invests primarily in shares of registered investment companies (the "underlying funds"). The fund will be diversified among a number of asset classes and its allocation among underlying funds will be based on an asset allocation model developed by Madison Asset Management, LLC ("Madison"), the fund’s investment adviser.
The team may use multiple analytical approaches to determine the appropriate asset allocation:
| | •Asset allocation optimization analysis – considers the degree to which returns in different asset classes do or do not move together, and the fund’s aim to achieve a favorable overall risk profile for any targeted portfolio return. |
| | •Scenario analysis – historical and expected return data is analyzed to model how individual asset classes and combinations of asset classes would affect the fund under different economic and market conditions. |
| | •Fundamental analysis – draws upon Madison’s investment teams to judge each asset class against current and forecasted market conditions. Economic, industry and security analysis is used to develop return and risk expectations that may influence asset class selection. |
In addition, Madison employs a risk management sleeve within the fund for the purpose of risk reduction when and if conditions exist that require reduction of equity exposure.
The six-month period ended April 30, 2010 was a smooth investing environment that resulted in relatively high returns with low volatility.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Aggressive Allocation Fund (concluded)
Improving economic and employment related data, in addition to continued accommodation by the Federal Reserve, gave investors the confidence they needed to push markets higher. In terms of major asset class performance, U.S. stocks, as measured by the S&P 500 Index, led the way with a strong 15.66% return. Returns on international stocks were quite lackluster in comparison, with the developed markets MSCI EAFE Index gaining 2.68%. U.S. core bonds returned 2.54% as measured by the Barclays U.S. Aggregate Bond Index.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Bond Funds | 11% |
| Foreign Bond Funds | 2% |
| Foreign Stock Funds | 11% |
| Money Market Funds and Other Net Assets | 1% |
| Stock Funds | 75% |
For the six-month period ended April 30, 2010, the MEMBERS Aggressive Allocation Fund (Class A shares at net asset value) returned 10.76%, in line with the Aggressive Allocation Fund Custom Index return of 10.72%. The largest positive impact on performance was our below benchmark allocation to international equities. The positive impact of our international underweight was countered by our focus on larger cap domestic stocks, as small and mid cap equities outperformed larger names by a fairly wide margin over the period.
Contributors to fund performance included: Fairholme Fund which returned 28.87% for the period, MEMBERS Small Cap Fund Class Y which returned 24.44%, MEMBERS Mid Cap Fund Class Y which returned 18.00%, and MEMBERS Large Cap Growth Fund Class Y which returned 13.60%.
Detractors from fund performance included: MEMBERS Bond Fund Class Y which returned 1.47% for the period, MEMBERS International Stock Fund Class Y which returned 3.19%, and Calamos Growth & Income Fund which returned 7.81%.
Over the period we transitioned the portfolio to a more conservative posture. We reduced our direct international equity position by roughly 60%, trimmed our small and mid cap positions, and added to our fixed income holdings. New positions added to the fund included MEMBERS Equity Income Fund Class Y (a covered call strategy) and Calamos Growth & Income Fund. We consider both funds defensive equity positions. We also increased our exposure to investment grade corporate bonds by initiating a position in PIMCO Investment Grade Corporate Bond Fund. Also added was Hussman Strategic Growth Fund, a long/short absolute return fund, and T. Rowe Price New Era Fund, a diversified energy and natural resources fund. Notable eliminations were Victory Special Value Fund, a mid cap fund, and Laudus International MarketMasters Fund, a developed markets international equity fund.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Cash Reserves Fund invests exclusively in U.S. dollar-denominated money market securities maturing in thirteen months or less from the date of purchase. These securities will be obligations of the U.S. Government and its agencies and instrumentalities, but may also include securities issued by U.S. and foreign financial institutions, corporations, municipalities, foreign governments, and multi-national organizations, such as the World Bank.
The fund may invest in mortgage-backed and asset-backed securities, including those representing pools of mortgage, commercial, or
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Cash Reserves Fund (concluded)
consumer loans originated by credit unions or other financial institutions.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Fannie Mae | 31% |
| Federal Home Loan Bank | 32% |
| Freddie Mac | 29% |
| U.S. Treasury Bills | 5% |
| Cash and Other Assets | 3% |
INVESTMENT STRATEGY HIGHLIGHTS
Under normal circumstances, the MEMBERS Bond Fund invests at least 80% of its assets in bonds. To keep current income relatively stable and to limit share price volatility, the fund emphasizes investment grade securities and maintains an intermediate (typically 3-6 year) average portfolio duration (a measure of a security’s price sensitivity to changes in interest rates). The fund also strives to minimize risk in the portfolio by making strategic decisions relating to credit risk and yield curve outlook. The fund may invest in corporate debt securities, U.S. Government debt securities, foreign government debt securities, non-rated debt securities, and asset-backed, mortgage-backed and commercial mortgage-backed securities.
The six-month period ended April 30, 2010 witnessed interest rates rising modestly in a choppy fashion and a mild steepening of the yield curve. While the economic data have been somewhat mixed as befits an economy recovering during a deleveraging process, there has been a growing sense that the recovery is sustainable, albeit not of a ‘V’ shaped nature. There have been a number of cross currents. Greece and the entire Economic and Monetary Union (EMU) situation increasingly concerned the markets. It calls into question how much debt sovereigns can support in their efforts to buoy their economies, the viability of a potential reserve currency, the Euro, and raises questions regarding whether more systemic risk needs to be priced into the markets. Policy debates in Washington D.C. have left the electorate in an angry mood and created uncertainty as to the nature of the financial system going forward. Finally, China has recognized it may have a major problem in the form of a property bubble and inflation more generally. It has taken both monetary and regulatory steps to tighten credit and slow its economy.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Asset Backed | 1% |
| Corporate Notes and Bonds | 17% |
| Mortgage Backed | 17% |
| U.S. Government and Agency Obligations | 56% |
| Cash and Other Net Assets | 9% |
During the six-month period ended April 30, 2010, the MEMBERS Bond Fund earned 1.44% (Class A shares at net asset value) while the Bank of America Merrill Lynch U.S. Corporate, Government & Mortgage Index earned 2.34%. The majority of the underperformance arises from the fund’s continued lower risk profile relative to the market index. The fund ended the period with a combined Treasury and cash position of approximately 62% versus the index weighting of 34%. The fund remained underweight corporate bonds in general, but particularly financials and BBB rated securities. The fund was also underweight mortgage securities in anticipation of the end of the Fed’s purchase program. For perspective, Treasuries earned less than 1% during the period, corporate bonds 4.97%, financial sector debt 5.53%, and BBB rated securities 6.95%, as measured by the
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Bond Fund (concluded)
Bank of America Merrill Lynch U.S. Corporate Master Index, Bank of America Merrill Lynch U.S. Financial Corporates Index, and the Bank of America Merrill Lynch U.S. Corporates BBB Rated Index, respectively. Most of the shortfall in performance the fund experienced was in the early part of the period. Given the heightened risks and reduced liquidity, the fund intends to remain risk averse going forward.
The fund experienced very little turnover during the period. We sold our position in a six-year Sprint bond in April. The security had recouped much of the price loss experienced earlier in 2009 and the fundamental story of this bond had not improved to the degree we expected. The fund also gradually reduced duration during the period. This was mostly accomplished through a buildup of cash.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS High Income Fund invests primarily in lower-rated, higher-yielding income bearing securities, such as "junk" bonds. Because the performance of these securities has historically been strongly influenced by economic conditions, the fund may emphasize security selection in business sectors that favor the economic outlook. Under normal market conditions, the fund invests at least 80% of its assets in bonds rated lower than investment grade (BBB/Baa) and their unrated equivalents or other high-yielding securities.
The high yield market continued its rally during the six-month period ended April 30, 2010 with the Bank of America Merrill Lynch High Yield Master II Constrained Index gaining 11.58%. The high yield sector substantially outperformed other fixed income sectors such as U.S. Treasuries which returned 1.0% and investment grade bonds as measured by the Bank of America Merrill Lynch U.S. Corporate Master Index which returned 5.0% for the period. The three key themes for the high yield market during the past six months were a record volume of new issuance, a rapidly declining default rate, and continued strong retail and institutional demand for high yield assets.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
Consumer Discretionary | 41% |
| Consumer Staples | 6% |
| Energy | 6% |
| Financials | 1% |
| Health Care | 6% |
| Industrials | 8% |
| Information Technology | 5% |
| Materials | 10% |
| Telecommunication Services | 9% |
| Utilities | 7% |
| Cash and Other Net Assets | 1% |
Consumer Discretionary includes securities in the following industries: Automobiles & Components, Consumer Durables & Apparel, Consumer Services, Media, and Retailing. |
The MEMBERS High Income Fund generated a return of 7.91% (Class A shares at net asset value) for the six-month period ended April 30, 2010. This performance lagged the Bank of America Merrill Lynch High Yield Master II Constrained Index, which returned 11.58% for the six-month period. A key component of the performance differential was the fund’s significant underweighting versus the index in Financials, which was a top performing sector for the period. For the overall high yield market, the Financial sector’s weighting has grown significantly over the past
MEMBERS Mutual Funds | Review of Period | April 30, 2010
High Income Fund (concluded)
15 months due to numerous fallen angels (i.e., downgrades from investment grade to high yield) that now accounts for over 10% of the index. The fund’s underweight is primarily due to the poor bond structure, long maturity, high leverage, and weak business profile endemic to many of these financial companies. However, notwithstanding these concerns, the financial issuers represented in the Bank of America Merrill Lynch High Yield Master II Constrained Index generated returns in excess of 10% for the period. During the reporting period, the fund benefited from its active participation in the new issue market. For the past six months, the fund participated in 37 new issues, 35 of which traded at a premium to issue price at the end of the period. The fund’s top weightings at the end of the reporting period included securities in the telecom, support-services, utilities, media -
diversified & services and health care areas.
One of the key changes to the fund’s portfolio during the reporting period was a decreased weighting in defensive securities such as those in the utilities and health care, and an increased weighting in cyclical chemicals. Moreover, the fund increased its weighting in the gaming and automotive industries, two areas that we believe should benefit from the resurgence in consumer discretionary spending. The fund also increased its weighting in convertible bonds during the reporting period from 4.8% to 6.3%.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Diversified Income Fund seeks income by investing in a broadly diversified array of securities including bonds, common stocks, real estate securities, foreign market bonds and stocks and money market instruments. Bonds, stock and cash components will vary, reflecting the portfolio managers’ judgments of the relative availability of attractively yielding and priced stocks and bonds. Generally, however, bonds will constitute up to 80% of the fund’s assets, stocks will constitute up to 60% of the fund’s assets, real estate securities will constitute up to 25% of the fund’s assets, foreign stocks and bonds will constitute up to 25% of the fund’s assets and money market instruments may constitute up to 25% of the fund’s assets. The fund intends to limit the investment in lower credit quality bonds to less than 50% of the fund’s assets. The balance between the two strategies of the fund (fixed income and equity investing) is determined after reviewing the risks associated with each type of investment, with the goal of meaningful risk reduction as market conditions demand.
INVESTING ENVIRONMENT
During the six-month period ended April 30, 2010, the broad U.S. stock market advanced 16.8%, as measured by the Russell 1000¨ Index. Domestically, smaller stocks outperformed larger stocks, a part of the trend which rewarded higher-risk assets. Optimism over a strong rebound in corporate earnings was a key driver for the stock market as investors who had moved to the sidelines, earning little in cash, were enticed back to stocks. Over the past six-months, we saw stocks return approximately triple what they have historically returned over a six-month period. The stocks held in the MEMBERS Diversified Income Fund lagged this performance, returning 15.4%, however we achieved our stock investment goal by participating in a strong bull market.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Diversified Income Fund (concluded)
Bonds were generally positive as well as they followed the same quality trend as stocks, with the high-yield market continuing to outpace lower-risk bond assets.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Common Stocks | 47% |
| Asset Backed | 1% |
| Corporate Notes and Bonds | 20% |
| Mortgage Backed | 16% |
| U.S. Government and Agency Obligations | 14% |
| Cash and Other Net Assets | 2% |
For the six-month period ended April 30, 2010, the MEMBERS Diversified Income Fund (Class A shares at net asset value) returned 7.94%, underperforming the Russell 1000¨ Index return of 16.77% and outperforming the Bank of America Merrill Lynch U.S. Corporate, Government & Mortgage Index return of 2.34%.
The equity portion of the fund (approximately 47% of the fund on April 30, 2010), performed well relative to the Russell 1000¨ Index in five of the ten major sectors. The fund had strong returns from Industrials, led by stand-outs Boeing Co., Emerson Electric Co., and Honeywell International, Inc. The fund’s stock selection within Health Care detracted from relative performance, with a majority of the drag due to global pharmaceutical company Pfizer, Inc. Telecommunication Services firms AT&T, Inc. and Verizon Communications, Inc. also detracted from relative performance. In line with the fund’s objective, the bond portion of the fund emphasizes income over total return. As of the end of the period, the fund’s Class A share’s 30-day SEC yield was 2.49%.
For the equity portion of the fund, the most notable change to the portfolio during the period was the decrease in Industrial stock holdings from approximately 19% to 12%. We eliminated positions in Tyco, Emerson, and Deere, and reduced position sizes in Boeing, 3M Company, Honeywell, and United Technologies. We increased the portfolio exposure to Consumer Staples from approximately 15% to 19%, initiating positions in Diageo and Procter & Gamble, while adding to our positions in Pepsi and Avon. We also increased our Information Technology sector weight from approximately 6% to 8.5%, initiating positions in IBM and Qualcom, while adding to Intel.
In the bond portion of the fund, we sold our position in a six-year Sprint bond in April. The security had recouped much of the price loss experienced earlier in 2009 and the fundamental story of this credit had not improved to a degree we had hoped.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Equity Income Fund invests primarily in common stocks of large-and mid-capitalization companies that are, in the view of the fund’s investment adviser, selling at a reasonable price in relation to their long-term earnings growth rates. The portfolio managers will allocate the fund’s assets among stocks in sectors of the economy based upon their expected earnings growth rates, adjusted to reflect their views on economic and market conditions and sector risk factors.
The fund will seek to generate current earnings from option premiums by writing (selling) covered call options on a substantial portion of its portfolio securities. The fund seeks to produce a high level of current income and current gains generated from option writing premiums and, to a lesser extent, from dividends. The extent of
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Equity Income Fund (concluded)
option writing activity will depend upon market conditions and the portfolio manager’s ongoing assessment of the attractiveness of writing call options on the fund’s stock holdings. In addition to providing income, covered call writing helps to reduce the volatility (and risk profile) of the fund by providing downside protection.
U.S. stocks moved broadly higher during the six-month period ended April 30, 2010. Over this time frame, the S&P 500 Index rose 15.66%, continuing the strong rally off the March 2009 market bottom. The CBOE BuyWrite Monthly Index, which represents a passive covered call benchmark, gained 9.61% for the period. Optimism over a strong rebound in corporate earnings was a key driver for the stock market as investors who had moved to the sidelines, earning little in cash, were enticed back to stocks. Cyclical sectors excelled during the upturn with Industrial and Consumer Discretionary stocks leading the way. The Technology sector was the leader from the market bottom, however, profit taking and growth concerns lead to weaker relative performance in the early months of 2010. Defensively oriented sectors such as Health Care, Utilities and Consumer Staples were among the laggards. Market volatility moved steadily lower during most of the recent six-month period as the market moved higher in an orderly fashion. However, volatility increased meaningfully in late April as the market began to sell off on concerns about the European sovereign debt crisis. This resulted in an improvement in call option premiums.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Consumer Discretionary | 13% |
| Energy | 14% |
| Financials | 14% |
| Health Care | 11% |
| Industrials | 1% |
| Information Technology | 20% |
| Materials | 2% |
| Cash and Other Net Assets | 25% |
The MEMBERS Equity Income Fund returned 4.70% (Class A shares at net asset value) for the six-month period ended April 30, 2010, which included the fund’s inception and "invest-up" period. Over the same period, the S&P 500 Index returned 15.66% and the CBOE BuyWrite Monthly Index returned 9.61%. As the fund inception coincided with the very strong upward move in the S&P 500 Index in late 2009, the initial cash was invested in a cautious manner given our concerns that a correction was in order. As such, the fund’s performance lagged the S&P 500 Index and the CBOE BuyWrite Monthly Index in the early portion of the period due to the higher than normal cash levels. The fund became more fully invested in early 2010.
We continue to add new individual companies to the portfolio on an opportunistic basis with a focus on high quality companies with strong financial and valuation characteristics. Given the very strong upward move in the overall stock market over the past 12 months, we remain relatively cautious given the potential for a market correction. The call option strategy has reflected our concerns as we have written (sold) call options relatively close-to-the-money in an effort to obtain the highest premiums possible in order to provide the portfolio with added downside protection. As volatility increased in late April 2010, option premiums became increasingly attractive.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
LARGE CAP VALUE FUND
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Large Cap Value Fund will, under normal market conditions, invest primarily in large cap stocks. The fund follows a "value" approach, meaning the portfolio managers seek to invest in stocks at prices below their perceived intrinsic value as estimated based on fundamental analysis of the issuing company and its prospects. By investing in value stocks, the fund attempts to limit the downside risk over time but may also produce smaller gains than other stock funds if their intrinsic values are not realized by the market or if growth-oriented investments are favored by investors. The fund will diversify its holdings among various industries and among companies within those industries. The fund typically sells a stock when the fundamental expectations for buying it no longer apply, the price exceeds its intrinsic value or other stocks appear more attractively priced relative to their intrinsic values.
During the six-month period ended April 30, 2010, value stocks advanced 17.77% as measured by the Russell 1000¨ Value Index. Domestically, smaller stocks outperformed larger stocks as part of the trend which rewarded higher-risk assets. Optimism over a strong rebound in corporate earnings was a key driver for the stock market as investors who had moved to the sidelines, earning little in cash, were enticed back to stocks. Over the past six months, we saw value stocks return approximately triple what they have historically returned over a six-month period, and the fund fell short of its goal of adequately participating in a strong bull market.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| | Fund | Russell 1000¨ Value Index |
| Consumer Discretionary | 9% | 11% |
| Consumer Staples | 7% | 5% |
| Energy | 21% | 18% |
| Financials | 24% | 26% |
| Health Care | 11% | 8% |
| Industrials | 11% | 11% |
| Information Technology | 7% | 5% |
| Materials | 3% | 4% |
| Telecommunication Services | 4% | 5% |
| Utilities | 2% | 7% |
| Cash and Other Net Assets | 1% | – |
For the six-month period ended April 30, 2010, the MEMBERS Large Cap Value Fund return of 12.76% (Class A shares at net asset value) lagged the Russell 1000¨ Value Index return of 17.77%. For the period, fund performance was negative across the ten major sectors versus the index. Results within the Consumer Discretionary sector detracted most from relative performance due to both stock selection and an underweight position versus the index. The fund’s worst performers came from a variety of sectors. Noble Corp. (Energy), Exelon Corp. (Utilities), Southwestern Energy (Energy), and Baxter International, Inc. (Health Care) all detracted meaningfully from relative performance. Stocks that had the most positive impact to performance versus the index were KeyCorp (Financials), AutoZone, Inc. (Consumer Discretionary), and Darden Restaurants, Inc (Consumer Discretionary). In addition, our decision to not invest in index-holding Exxon Mobil added to relative performance.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Large Cap Value Fund (concluded)
At the beginning of the six-month period, we were completing a portfolio restructuring to a more focused portfolio of 55-60 stocks. The most notable change to the portfolio during the period was a decrease in the Utilities sector weight from 4.8% to 2.3%. We eliminated Utility stocks Edison International and Questar Corp. Conversely, our Consumer Staples sector weight rose from 5.1% to 6.8%, as we added to existing positions and initiated a position in CVS Caremark Corporation. Our weight in the Financials sector also rose, from 22.6% to 24.1% as we added to existing positions and added new positions in the Insurance firms Berkshire Hathaway Inc. and The Travelers Company, Inc.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Large Cap Growth Fund invests primarily in common stocks of larger companies and will, under normal market conditions, maintain at least 80% of its assets in large cap stocks. The fund follows a "growth" approach, meaning the portfolio managers seek stocks that have low market prices relative to their perceived growth capabilities as estimated based on fundamental analysis of the issuing companies and their prospects. The fund typically seeks higher earnings growth capabilities in the stocks it purchases, and may include some companies undergoing more significant changes in their operations or experiencing significant changes in their markets. The fund will diversify its holdings among various industries and among companies within those industries. The fund has an active trading strategy which will lead to more portfolio turnover than a more passively-managed fund. The fund typically sells a stock when the fundamental expectations for buying it no longer apply, the price exceeds its perceived value or other stocks appear more attractively priced relative to their prospects.
Positive double digit returns were achieved by the stock market during the six-month period ended April 30, 2010. The market started the period near its low and ended the period near its high, with the Russell 1000¨ Growth Index up 15.79% for the entire period. Stocks benefitting from an economic recovery did especially well, as evidenced by above market returns in the Consumer Discretionary as well as the Industrial sectors. Generally, smaller companies did better than larger ones, as did those considered lower quality as measured by S&P ratings.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| | Fund | Russell 1000¨ Growth Index |
| Consumer Discretionary | 9% | 11% |
| Consumer Staples | 10% | 15% |
| Energy | 8% | 4% |
| Financials | 9% | 5% |
| Health Care | 12% | 15% |
| Industrials | 8% | 11% |
| Information Technology | 38% | 33% |
| Materials | 3% | 4% |
| Telecommunication Services | 0% | 1% |
| Utilities | 0% | 1% |
| Cash and Other Net Assets | 3% | – |
The MEMBERS Large Cap Growth Fund returned 13.44% (Class A shares at net asset value) for the six-month period ended April 30, 2010, a strong absolute gain, but trailing the Russell 1000¨ Growth return of 15.79%.
The fund had strong returns from Health Care, focusing on companies we determined to be likely beneficiaries of healthcare reform, such as HMS Holdings Corp., a Medicaid auditing company, which gained almost 25% in the six-month period. Boeing Co., another holding,
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Large Cap Growth Fund (concluded)
was a stand out performer in the Industrial space, gaining over 50% for the period. In the Consumer area, our position in YUM! Brands, Inc., an investment geared towards increased fast food consumption in China, gained over 30%.
Performance was impeded by our Energy holdings, especially those related to natural gas. While oil prices held up for the period, natural gas prices declined, causing our positions in PetroHawk Energy Corp. and Southwestern Energy Co. to decline over 8%. Additionally, while our stock selection was good in the Consumer area, up over 26%, this is not an area of emphasis within the portfolio, given the chronic unemployment and the need for consumers to repay debt rather than spend. Our exposure to the Consumer area within the portfolio was only about half that of the benchmark and this detracted from performance.
The strength of the market move in the face of a spotty economic recovery allowed us to add to stocks of high conviction and take profits in those which have reached target prices or whose future remains uncertain. We sold Mastercard, Inc. due to a potential large legal liability; we sold Aflac, Inc. due to its European sovereign debt exposure; we took profits in UnitedHealth Group, Inc. as it reached our target price. We added to IntercontinentalExchange, Inc. since it will likely be a beneficiary of financial reform. We initiated a position in AECOM, an engineering and construction firm geared towards federal and state programs. Generally our focus remains on financially strong companies likely to thrive in what we believe is expected to be a sub par economic recovery.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Mid Cap Fund generally invests in common stocks of midsize companies and will, under normal market conditions, maintain at least 80% of its assets in mid cap securities. However, the fund will not automatically sell a stock because its market capitalization has changed and such positions may be increased through additional purchases. The fund seeks attractive long-term returns through bottom-up security selection based on fundamental analysis in a diversified portfolio of high-quality growth companies with attractive valuations. These will typically be industry leading companies in niches with strong growth prospects. The fund’s portfolio managers believe in selecting stocks for the fund that show steady, sustainable growth and reasonable valuation. As a result, stocks of issuers that are believed to have a blend of both value and growth potential will be selected for investment. Stocks are generally sold when target prices are reached, company fundamentals deteriorate or more attractive stocks are identified.
During the six-month period ended April 30, 2010, mid cap stocks continued to rally as investors gained confidence in prospects of an economic recovery. Strong productivity gains and restrained capital spending have produced very healthy free cash flows and improving corporate balance sheets. Additionally, the Fed has continued to signal its intent to remain flexible and accommodative for the foreseeable future. Equity markets, and mid cap stocks in particular, have responded positively to these developments. The Russell Midcap¨ Index rose 24.93% during the period. Within the index, all sectors generated positive returns although the magnitude of returns varied. The best performing sectors were Consumer
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Mid Cap Fund (concluded)
Discretionary, Materials, Telecommunications, Financials and Industrials, while the sectors with the lowest returns were the Utilities, Consumer Staples and Energy sectors.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| | Fund | Russell Midcap¨ Index |
| Consumer Discretionary | 14% | 16% |
| Consumer Staples | 4% | 7% |
| Energy | 7% | 6% |
| Financials | 17% | 20% |
| Health Care | 10% | 9% |
| Industrials | 18% | 13% |
| Information Technology | 14% | 14% |
| Materials | 5% | 6% |
| Telecommunication Services | 2% | 2% |
| Utilities | 1% | 7% |
| Cash and Other Net Assets | 8% | – |
For the six-month period ended April 30, 2010, the MEMBERS Mid Cap Fund returned 17.98% (Class A shares at net asset value), underperforming the Russell Midcap¨ Index return of 24.93%.
Among the largest sources of weakness compared to the benchmark were our Information Technology, Industrials and Energy holdings. Computer communications equipment provider Brocade Communications Systems, Inc. was the worst performing Technology stock in the portfolio. Other notable underperforming stocks were natural gas exploration and production company Southwestern Energy Co. and oil driller Noble Corp.
Relative to the benchmark, stock picking was best in the Telecommunications sector due primarily to outperformance by wireless telecommunications provider Millicom International Cellular. Other leading performers came from a variety of sectors. Commercial real estate operating company Brookfield Properties Corp. (Financials), discount retailer Sears Holdings Corp. (Consumer Discretionary), mineral producer Cliffs Natural Resources, Inc. (Materials) and industrial distributor Fastenal Co. (Industrials) all contributed meaningfully to stock selection.
We increased our exposure to the financial sector during the six-month period, particularly in Insurance and Asset Management. We added to insurance broker Brown and Brown Inc., specialty insurer Markel Corp. and property & casualty insurer RLI Corp. Top positions include Brookfield Asset Management, Inc. and SEI Investments Co. We maintain an overweight position in Financials as we believe valuations are attractive.
We reduced our Industrial exposure during the period although we still have an overweight position. As the market priced in stronger economic prospects, valuations became less attractive, and we felt it prudent to reduce exposure and rotate into other stocks with better return prospects. We also slightly trimmed exposure in other sectors including Materials and Energy as valuations became less attractive.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS Small Cap Fund invests primarily in a diversified mix of common stocks of small cap U.S. companies that are believed to be undervalued by various measures and offer sound prospects for capital appreciation. The portfolio managers employ a value-oriented investment approach in selecting stocks, using proprietary fundamental research to identify securities of companies they believe have attractive valuations. The portfolio managers focus on companies with a record of above
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Small Cap Fund (continued)
average rates of profitability that sell at a discount relative to the overall small cap market. Through fundamental research, the portfolio managers seek to identify those companies which possess one or more of the following characteristics: sustainable competitive advantages within a market niche; strong profitability and free cash flows; strong market share positions and trends; quality of and share ownership by management; and financial structures that are more conservative than the relevant industry average.
The six-month period ended April 30, 2010 saw strong stock returns as generally solid earnings reports and a belief the economy is finding its footing provided a lift to equities. Value stocks (30.7%) outpaced growth (25.5%) for the period while small cap stocks (28.2%) led their larger peers (15.7%), as measured by the Russell 2000¨ Value, Russell 2000¨ Growth, Russell 2000¨, and S&P 500 Indices, respectively. Sector performance was strong, with all sectors of the benchmark posting gains for the period. Consumer Discretionary, Materials, and Financials led the market higher while Telecommunications Services and Utilities lagged, but posted double-digit returns.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| | Fund | Russell 2000¨ Index |
| Consumer Discretionary | 18% | 15% |
| Consumer Staples | 5% | 3% |
| Energy | 5% | 5% |
| Financials | 23% | 22% |
| Health Care | 7% | 14% |
| Industrials | 21% | 15% |
| Information Technology | 9% | 17% |
| Materials | 4% | 5% |
| Telecommunication Services | 0% | 1% |
| Utilities | 5% | 3% |
| Cash and Other Net Assets | 3% | – |
For the six-month period ended April 30, 2010, the MEMBERS Small Cap Fund returned 24.24% (Class A shares at net asset value), lagging the Russell 2000¨ Index return of 28.17%.
Consistent with the fund’s bottom-up focus, relative performance across sectors was driven primarily by stock selection. The fund benefited from strong security selection among its Financials, Industrials, and Information Technology holdings. Positive results in Financials were driven by regional banking and investment services provider Webster Financial Corp. and specialty investment company Ares Capital Corp. Bowne & Co. Inc., a shareholder, investor, and marketing communications company, and Albany International Corp., a producer of specialty fabric used in paper production, were leading contributors to Industrials returns. Other standouts included Whiting Petroleum Corp. (Energy) and Herbalife, Ltd. (Consumer Staples).
Among the largest sources of relative weakness were Consumer Discretionary, Materials, and Health Care holdings. Relative performance suffered in Consumer Discretionary due to investments in memorialization products company Matthews International Corp. and personal care and household products producer Helen of Troy, Ltd. Our position in cleaning products company Zep, Inc. hurt performance in Materials and our investments in contract research provider Charles River Laboratories International, Inc. and Amsurg Corp., a developer of ambulatory surgery centers, detracted in Health Care.
Sector allocation also negatively impacted relative performance primarily due to the fund’s higher than normal cash position in a rising market and above-benchmark weights in the Utilities and Consumer Staples sectors.
MEMBERS Mutual Funds | Review of Period | April 30, 2010
Small Cap Fund (concluded)
The fund’s investment approach emphasizes stock selection; sector weights are a residual of the bottom-up process. We do, however, carefully consider diversification across economic sectors to limit risk. Based on bottom-up stock decisions, the most notable changes to the fund during the period were increased exposure to Financials and a decreased exposure to Health Care. In Financials, we established new positions in AMERISAFE Inc., Northwest Bancshares Inc., and Education Realty Trust Inc. Exposure to Health Care fell as we eliminated our position in Centene Corp. and trimmed our investment in Universal American Corp.
INVESTMENT STRATEGY HIGHLIGHTS
The MEMBERS International Stock Fund will invest, under normal market conditions, primarily in foreign equity securities. Typically, a majority of the fund’s assets are invested in relatively large capitalization stocks of companies located or operating in developed countries. The fund may also invest up to 30% of its assets in securities of companies whose principal business activities are located in emerging market countries. The portfolio managers typically maintain this segment of the fund’s portfolio in such stocks which it believes have a low market price relative to their perceived value based on fundamental analysis of the issuing company and its prospects. The fund may also invest in foreign debt and other income bearing securities at times when it believes that income bearing securities have greater capital appreciation potential than equity securities.
Over the six-month period ended April 30, 2010, stocks extended the rally that began in March 2009 amid signs of a continuing economic recovery. However, financial markets experienced some weakness and volatility over the period due to worries about sovereign debt in Europe, uncertainty over Chinese monetary policies, and proposals to overhaul the Financial sector. During the past six months, economically sensitive sectors, such as Information Technology, Industrials, Materials, and Consumer Discretionary, led the way. The traditionally defensive Utilities and Telecommunications Services sectors, however, lagged, as investors favored more cyclical sectors.
| GEOGRAPHICAL ALLOCATION AS A PERCENTAGE OF NET ASSETS |
| AS OF 4/30/10 |
| Europe (excluding United Kingdom) | 33% |
| United Kingdom | 27% |
| Japan | 20% |
| Pacific Basin | 6% |
| Latin America | 4% |
| Other Countries | 6% |
| Cash and Other Net Assets | 4% |
The MEMBERS International Stock Fund return of 3.04% (Class A shares at net asset value) outperformed the MSCI EAFE Index return of 2.68% over the six-month period ended April 30, 2010. Stock selection in the Telecommunication Services sector added to performance, as shares of Rogers Communications Inc. performed well due to expectations of increased benefits from continued digitization amid the global recovery. Holdings in BT Group, Idea Cellular, Ltd., and TELUS Corp. also added to returns within the sector.
Stock selection in the Consumer Discretionary sector also helped returns. Informa performed especially well following its announcement of encouraging earnings, while Esprit Holdings, Ltd. rose due to optimism that the improving economy would further lift the company’s sales
MEMBERS Mutual Funds | Review of Period | April 30, 2010
International Stock Fund (concluded)
In the Financials sector, holdings across several industries helped performance, including Lloyds Banking Group, Standard Chartered, and Sumitomo Mitsui Financial Group Inc. in the banks segment; Allianz in the insurance segment; and Daito Trust Construction Co., Ltd. and Mitsubishi Estate Co., Ltd. in real estate.
Stock selection in the Industrials sector was a detractor for the period. The Greek crisis has put pressure on the Italian and Spanish governments for fiscal reform, which negatively impacted Italian infrastructure group Atlantia. Holdings in Secom Co., Ltd., a Japanese security company, also detracted from returns over the period. Stock selection in the Consumer Staples sector also detracted from performance over the period. Heineken announced strong earnings, but guided weak volumes and further job cuts for 2010, which weighed on the shares. Unilever also fell due to profit-taking following the sharp appreciation of the stock in 2009.
At the end of the period, the fund had high exposure relative to the index in Health Care, Information Technology, Emerging Markets, U.S. dollar-based assets, and non-Eurozone Europe. The fund also ended the period with low exposure to Greece, the euro, Financials, Energy, Utilities, and Materials (commodities). The underweight position in the Eurozone and Continental Europe began in the second half of 2009 and was the residual of stock selection and a focus on higher quality. We had a general preference for investments in financial companies that are domiciled in countries with control of their monetary (currency) and fiscal policy. Given the weakness in the euro, we believe new investment opportunities may arise from the renewed exporter competitiveness of the Eurozone-based exporters. The portfolio team continues to focus on stock selection, seeking to find stocks with sustainably high or improving returns that are trading at attractive valuations.
MEMBERS Mutual Funds | April 30, 2010
BENCHMARK DESCRIPTIONS
Allocation Fund Indexes
The Conservative Allocation Fund Custom Index consists of 65% Merrill Lynch U.S. Corporate, Government and Mortgage Index, 30% Russell 3000¨ Index and 5% MSCI EAFE Index. See market indexes descriptions below.
The Moderate Allocation Fund Custom Index consists of 40% Merrill Lynch U.S. Corporate, Government and Mortgage Index, 45% Russell 3000¨ Index and 15% MSCI EAFE Index. See market indexes descriptions below.
The Aggressive Allocation Fund Custom Index consists of 15% Merrill Lynch U.S. Corporate, Government and Mortgage Index, 55% Russell 3000¨ Index and 30% MSCI EAFE Index. See market indexes descriptions below.
Market Indexes
The CBOE BuyWrite Monthly Index (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy (i.e. holding a long position in and selling covered call options on that position) on the S&P 500 Index.
The Bank of America Merrill Lynch U.S. Corporate, Government & Mortgage Index is a broad-based measure of the total rate of return performance of the U.S. investment-grade bond markets. The index is a capitalization-weighted aggregation of outstanding U.S. treasury, agency and supranational mortgage pass-through, and investment-grade corporate bonds meeting specified selection criteria.
The Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index tracks the performance of below investment grade U.S. dollar denominated corporate bonds publicly issued in the U.S. domestic market, but limits any individual issuer to a maximum weighting of 2%.
The MSCI EAFE (Europe, Australasia & Far East) Index is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada.
The Russell 1000¨ Index is a large-cap market index which measures the performance of the 1,000 largest companies in the Russell 3000¨ Index (see definition below).
The Russell 1000¨ Growth Index is a large-cap market index which measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000¨ Value Index is a large-cap market index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2000¨ Index is a small-cap market index which measures the performance of the smallest 2,000 companies in the Russell 3000¨ Index (see definition below.)
The Russell 2000¨ Growth Index is a small-cap market index which measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 2000¨ Value Index is a small-cap market index which measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 3000¨ Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents 98% of the investable U.S. equity market.
The Russell Midcap¨ Index is a mid-cap market index which measures the performance of the mid-cap segment of the U.S. equity universe.
The Russell Midcap¨ Growth Index is a mid-cap market index which measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values.
The S&P 500 Index is a large-cap market index which measures the performance of a representative sample of 500 leading companies in leading industries in the U.S.
MEMBERS Mutual Funds | April 30, 2010
Conservative Allocation Fund Portfolio of Investments
| | |
| INVESTMENT COMPANIES - 99.99% | |
| | Bond Funds - 66.08% | |
| 489,078 | Dodge & Cox Income Fund | $ 6,455,835 |
| 350,948 | Madison Mosaic Institutional Bond Fund (R) | 3,800,770 |
| 967,986 | MEMBERS Bond Fund, Class Y (R) | 9,796,019 |
| 740,669 | MEMBERS High Income Fund, Class Y (R) | 5,110,616 |
| 285,839 | PIMCO Investment Grade Corporate Bond Fund | |
| | | |
| | Foreign Bond Funds - 6.26% | |
| 198,353 | Templeton Global Bond Fund/United States | |
| | Foreign Stock Funds - 4.83% | |
| 207,631 | MEMBERS International Stock Fund,Class Y (R) | |
| | Money Market Funds - 0.96% | |
| 411,584 | SSgA Prime Money Market Fund | |
| | |
| | Stock Funds - 21.86% | |
| 43,807 | Calamos Growth and Income Fund | $ 1,252,870 |
| 109,632 | MEMBERS Equity Income Fund, Class Y (R)* | 1,148,948 |
| 234,400 | MEMBERS Large Cap Growth Fund, Class Y (R) | 3,504,276 |
| 296,499 | MEMBERS Large Cap Value Fund, Class Y (R) | |
| | | |
| | Total Investment Companies - 99.99% ( Cost $41,451,910** ) | 42,972,383 |
| NET OTHER ASSETS AND LIABILITIES - 0.01% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $42,640,121. |
| (R) | Affiliated Company (see Note11). |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Moderate Allocation Fund Portfolio of Investments
| | |
| INVESTMENT COMPANIES - 100.02% | |
| | Bond Funds - 39.71% | |
| 673,620 | Dodge & Cox Income Fund | $ 8,891,780 |
| 441,727 | Madison Mosaic Institutional Bond Fund (R) | 4,783,902 |
| 1,328,925 | MEMBERS Bond Fund, Class Y (R) | 13,448,718 |
| 1,292,785 | MEMBERS High Income Fund, Class Y (R) | 8,920,213 |
| 411,629 | PIMCO Investment Grade Corporate Bond Fund | |
| | | |
| | Foreign Bond Funds - 5.34% | |
| 403,392 | Templeton Global Bond Fund/United States | |
| | Foreign Stock Funds - 7.84% | |
| 803,733 | MEMBERS International Stock Fund, Class Y (R) | |
| | Money Market Funds - 0.81% | |
| 825,360 | SSgA Prime Money Market Fund | |
| | |
| | Stock Funds - 46.32% | |
| 207,371 | Calamos Growth and Income Fund | $ 5,930,798 |
| 153,015 | Fairholme Fund | 5,386,141 |
| 440,945 | Madison Mosaic Disciplined Equity Fund (R) | 5,397,173 |
| 351,549 | MEMBERS Equity Income Fund, Class Y (R)* | 3,684,238 |
| 682,727 | MEMBERS Large Cap Growth Fund, Class Y (R) | 10,206,774 |
| 863,601 | MEMBERS Large Cap Value Fund, Class Y (R) | 10,164,588 |
| 501,797 | MEMBERS Mid Cap Fund, Class Y (R) | 2,950,566 |
| 368,325 | MEMBERS Small Cap Fund, Class Y (R) | |
| | | |
| | Total Investment Companies - 100.02% ( Cost $97,965,308** ) | 102,514,126 |
| NET OTHER ASSETS AND LIABILITIES - (0.02)% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $100,953,431. |
| (R) | Affiliated Company (see Note 11). |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Aggressive Allocation Fund Portfolio of Investments
| | |
| INVESTMENT COMPANIES - 99.76% | |
| | Bond Funds - 11.11% | |
| 130,102 | MEMBERS Bond Fund, Class Y (R) | $ 1,316,631 |
| 301,956 | MEMBERS High Income Fund, Class Y (R) | 2,083,498 |
| 51,188 | PIMCO Investment Grade Corporate Bond Fund | |
| | | |
| | Foreign Bond Funds - 2.24% | |
| 59,075 | Templeton Global Bond Fund/United States | |
| | Foreign Stock Funds - 10.50% | |
| 375,851 | MEMBERS International Stock Fund, Class Y (R) | |
| | Money Market Funds - 0.85% | |
| 303,422 | SSgA Prime Money Market Fund | |
| | |
| | Stock Funds - 75.06% | |
| 95,658 | Calamos Growth and Income Fund | $ 2,735,819 |
| 86,990 | Fairholme Fund | 3,062,058 |
| 165,305 | Hussman Strategic Growth Fund | 2,099,376 |
| 299,355 | Madison Mosaic Disciplined Equity Fund (R) | 3,664,099 |
| 121,164 | MEMBERS Equity Income Fund, Class Y (R)* | 1,269,794 |
| 283,064 | MEMBERS Large Cap Growth Fund, Class Y (R) | 4,231,812 |
| 355,856 | MEMBERS Large Cap Value Fund, Class Y (R) | 4,188,431 |
| 356,992 | MEMBERS Mid Cap Fund, Class Y (R) | 2,099,115 |
| 188,896 | MEMBERS Small Cap Fund,Class Y (R) | 1,926,742 |
| 35,572 | T Rowe Price New Era Fund | |
| | | |
| | Total Investment Companies - 99.76% ( Cost $33,759,796** ) | 35,721,268 |
| NET OTHER ASSETS AND LIABILITIES - 0.24% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $34,990,126. |
| (R) | Affiliated Company (see Note 11). |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Cash Reserves Fund Portfolio of Investments
| | |
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 96.54% | |
| | Fannie Mae - 30.68% (A) | |
$ 600,000 | 0.200%, due 05/03/10 | $ 599,993 |
| 500,000 | 0.120%, due 05/05/10 | 499,993 |
| 400,000 | 0.120%, due 05/12/10 | 399,985 |
| 500,000 | 0.140%, due 05/20/10 | 499,963 |
| 500,000 | 0.160%, due 06/03/10 | 499,927 |
| 163,000 | 0.180%, due 06/16/10 | 162,963 |
| 700,000 | 0.150%, due 07/06/10 | 699,808 |
| 750,000 | 0.175%, due 07/07/10 | 749,756 |
| 500,000 | 0.175%, due 07/14/10 | |
| | | |
| | Federal Home Loan Bank - 31.60% (A) | |
| 500,000 | 0.120%, due 05/11/10 | $499,983 |
| 400,000 | 0.130%, due 05/24/10 | 399,967 |
| 500,000 | 0.110%, due 05/25/10 | 499,963 |
| 600,000 | 0.160%, due 06/02/10 | 599,915 |
| 600,000 | 0.170%, due 06/09/10 | 599,890 |
| 500,000 | 0.150%, due 06/14/10 | 499,908 |
| 600,000 | 0.180%, due 06/18/10 | 599,856 |
| 750,000 | 0.170%, due 06/23/10 | 749,812 |
| 300,000 | 0.180%, due 06/30/10 | |
| | | |
| | |
| | Freddie Mac - 29.60% (A) | |
$ 700,000 | 0.110%, due 05/04/10 | $ 699,993 |
| 600,000 | 0.160%, due 05/27/10 | 599,931 |
| 750,000 | 0.140%, due 06/01/10 | 749,909 |
| 750,000 | 0.140%, due 06/04/10 | 749,901 |
| 750,000 | 0.140%, due 06/08/10 | 749,889 |
| 250,000 | 0.160%, due 06/16/10 | 249,949 |
| 650,000 | 0.170%, due 07/02/10 | |
| | | |
| | U.S. Treasury Bills - 4.66% (A) | |
| 700,000 | 0.123%, due 06/24/10 | |
| | Total U.S. Government and Agency Obligations ( Cost $14,510,665 ) | 14,510,665 |
| | |
| INVESTMENTCOMPANY - 3.47% | |
| 521,460 | SSgA U.S. Treasury Money Market Fund | |
| | Total Investment Company ( Cost $521,460 ) | 521,460 |
TOTAL INVESTMENTS - 100.01% ( Cost $15,032,125** ) | |
| NET OTHER ASSETS AND LIABILITIES - (0.01)% | |
| TOTAL NET ASSETS - 100.00% | |
| ** | Aggregate cost for Federal tax purposes was $15,032,125. |
| (A) | Rate noted represents annualized yield at time of purchase. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Bond Fund Portfolio of Investments
| | |
| ASSET BACKED - 1.05% | |
$ 64,040 | ABSC Long Beach Home Equity Loan Trust,, Series 2000-LB1, Class AF5 (M), 8.550%, due 09/21/30 | $ 62,320 |
| 670,000 | Chase Issuance Trust,, Series 2007-A17, Class A, 5.120%, due 10/15/14 | 726,973 |
| 1,500,000 | New Century Home Equity Loan Trust,, Series 2003-5, Class AI5 (G), 5.500%, due 11/25/33 | |
| | Total Asset Backed ( Cost $2,228,913 ) | 2,249,808 |
| CORPORATE NOTES AND BONDS - 16.78% | |
| | Consumer Discretionary - 1.78% | |
| 750,000 | American Association of Retired Persons (C), 7.500%, due 05/01/31 | 789,218 |
| 215,000 | DR Horton, Inc., 5.250%, due 02/15/15 | 207,475 |
| 575,000 | ERAC USA Finance LLC (C), 6.700%, due 06/01/34 | 579,648 |
| 1,000,000 | McDonald’s Corp., 5.000%, due 02/01/19 | 1,061,708 |
| 1,000,000 | Time Warner Cable, Inc., 8.250%, due 02/14/14 | |
| | | |
| | Consumer Staples - 1.93% | |
| 1,000,000 | Campbell Soup Co., 4.500%, due 02/15/19 | 1,035,902 |
| 215,000 | PepsiCo, Inc./NC, 4.650%, due 02/15/13 | 232,123 |
| 1,000,000 | PepsiCo, Inc./NC, 7.900%, due 11/01/18 | 1,261,399 |
| 1,000,000 | Walgreen Co., 5.250%, due 01/15/19 | 1,085,619 |
| 525,000 | WM Wrigley Jr. Co., 4.300%, due 07/15/10 | |
| | | |
| | Energy - 0.80% | |
| 240,000 | Hess Corp., 7.875%, due 10/01/29 | 293,054 |
| 850,000 | Transocean, Inc., 6.000%, due 03/15/18 | 930,577 |
| 450,000 | Valero Energy Corp., 7.500%, due 04/15/32 | |
| | | |
| | Financials - 3.41% | |
| 500,000 | American General Finance Corp.,, Series H, 4.625%, due 09/01/10 | 499,157 |
| 215,000 | Bank of America Corp., 5.750%, due 12/01/17 | 219,650 |
| 420,000 | Bear Stearns Cos. LLC/The, 7.250%, due 02/01/18 | 484,519 |
| 1,250,000 | Caterpillar Financial Services Corp., 7.050%, due 10/01/18 | 1,470,705 |
| 290,000 | General Electric Global Insurance, Holding Corp., 7.000%, due 02/15/26 | 313,772 |
| 330,000 | General Electric Global Insurance, Holding Corp., 7.750%, due 06/15/30 | 362,753 |
| 750,000 | Goldman Sachs Group, Inc./The, 5.700%, due 09/01/12 | 797,044 |
| 490,000 | HCP, Inc., 6.700%, due 01/30/18 | 512,012 |
| 520,000 | Lehman Brothers Holdings, Inc. (E) *, 5.750%, due 01/03/17 | 650 |
| | |
$ 530,000 | Merrill Lynch & Co., Inc., 6.150%, due 04/25/13 | $ 573,520 |
| 270,000 | Simon Property Group L.P., 5.875%, due 03/01/17 | 288,949 |
| 440,000 | SLM Corp., 5.125%, due 08/27/12 | 443,952 |
| 250,000 | UBS AG/Stamford CT, 5.750%, due 04/25/18 | 262,028 |
| 500,000 | US Bank NA/Cincinnati, OH, 6.300%, due 02/04/14 | 562,318 |
| 485,000 | Wells Fargo & Co., 5.250%, due 10/23/12 | |
| | | |
| | Health Care - 0.78% | |
| 500,000 | Eli Lilly & Co., 6.570%, due 01/01/16 | 560,958 |
| 325,000 | Genentech, Inc., 5.250%, due 07/15/35 | 312,680 |
| 500,000 | Merck & Co., Inc., 5.750%, due 11/15/36 | 531,104 |
| 230,000 | Wyeth, 6.500%, due 02/01/34 | |
| | | |
| | Industrials - 1.94% | |
| 240,000 | Boeing Co./The, 8.625%, due 11/15/31 | 327,164 |
| 285,000 | Burlington Northern Santa Fe LLC, 8.125%, due 04/15/20 | 352,337 |
| 105,000 | EI du Pont de Nemours & Co., 5.000%, due 01/15/13 | 113,773 |
| 800,000 | General Electric Co., 5.000%, due 02/01/13 | 863,877 |
| 270,000 | Lockheed Martin Corp. 7.650%, due 05/01/16 | 329,387 |
| 359,000 | Norfolk Southern Corp. 5.590%, due 05/17/25 | 364,172 |
| 390,000 | Norfolk Southern Corp. 7.050%, due 05/01/37 | 467,058 |
| 235,000 | Waste Management, Inc. 7.125%, due 12/15/17 | |
| | | |
| | Information Technology - 1.07% | |
| 400,000 | Cisco Systems, Inc. 5.500%, due 02/22/16 | 451,145 |
| 1,000,000 | Hewlett-Packard Co. 6.125%, due 03/01/14 | 1,136,537 |
| 660,000 | Xerox Corp. 6.875%, due 08/15/11 | |
| | | |
| | Materials - 0.40% | |
| 325,000 | Westvaco Corp., 8.200%, due 01/15/30 | 363,138 |
| 500,000 | Weyerhaeuser Co., 7.375%, due 03/15/32 | |
| | | |
| | Telecommunication Services - 3.18% | |
| 1,500,000 | AT&T, Inc., 4.850%, due 02/15/14 | 1,626,772 |
| 1,500,000 | Cellco Partnership/, Verizon Wireless Capital LLC, 8.500%, due 11/15/18 | 1,897,752 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Bond Fund Portfolio of Investments (continued)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Telecommunication Services (continued) | |
$ 525,000 | Comcast Cable Communications, Holdings, Inc., 9.455%, due 11/15/22 | $ 708,836 |
| 775,000 | New Cingular Wireless Services,, Inc., 7.875%, due 03/01/11 | 819,859 |
| 455,000 | Rogers Communications, Inc. (D), 6.250%, due 06/15/13 | 504,756 |
| 1,000,000 | Verizon Communications, Inc., 8.750%, due 11/01/18 | |
| | | |
| | Utilities - 1.49% | |
| 500,000 | Energy East Corp., 8.050%, due 11/15/10 | 519,666 |
| 535,000 | Interstate Power & Light Co., 6.250%, due 07/15/39 | 578,248 |
| 250,000 | Progress Energy, Inc., 7.750%, due 03/01/31 | 305,722 |
| 650,000 | Sierra Pacific Power Co., Series M, 6.000%, due 05/15/16 | 717,511 |
| 215,000 | Virginia Electric and Power Co., 5.100%, due 11/30/12 | 234,282 |
| 750,000 | Wisconsin Electric Power Co., 6.500%, due 06/01/28 | |
| | | |
| | Total Corporate Notes and Bonds ( Cost $33,487,288 ) | 35,970,127 |
| MORTGAGE BACKED - 16.64% | |
| | Fannie Mae - 14.78% | |
| 471,083 | 4.000%, due 04/01/15 Pool # 255719 | 484,683 |
| 347,068 | 5.500%, due 04/01/16 Pool # 745444 | 365,443 |
| 24,960 | 6.000%, due 05/01/16 Pool # 582558 | 26,940 |
| 319,594 | 5.500%, due 02/01/18 Pool # 673194 | 343,545 |
| 499,175 | 5.000%, due 05/01/20 Pool # 813965 | 531,522 |
| 585,123 | 4.500%, due 09/01/20 Pool # 835465 | 615,196 |
| 46,714 | 6.000%, due 05/01/21 Pool # 253847 | 51,316 |
| 2,228,052 | 4.500%, due 04/01/23 Pool # 974401 | 2,320,631 |
| 2,228,052 | 4.500%, due 04/01/23 Pool # 974401 | 2,320,631 |
| 1,458,230 | 4.500%, due 06/01/23 Pool # 984075 | 1,518,822 |
| 26,997 | 7.000%, due 12/01/29 Pool # 762813 | 30,022 |
| 41,889 | 7.000%, due 11/01/31 Pool # 607515 | 46,869 |
| 245,774 | 6.500%, due 03/01/32 Pool # 631377 | 270,789 |
| 2,209 | 7.000%, due 04/01/32 Pool # 641518 | 2,472 |
| 25,049 | 7.000%, due 05/01/32 Pool # 644591 | 28,026 |
| 560,725 | 6.500%, due 06/01/32 Pool # 545691 | 617,796 |
| 223,867 | 6.000%, due 12/01/32 Pool # 676552 | 242,773 |
| 1,222,785 | 5.500%, due 04/01/33 Pool # 690206 | 1,297,885 |
| 660,762 | 5.000%, due 10/01/33 Pool # 254903 | 689,960 |
| 902,937 | 5.500%, due 11/01/33 Pool # 555880 | 958,393 |
| 98,902 | 5.000%, due 05/01/34 Pool # 775604 | 103,180 |
| | |
$ 278,984 | 5.000%, due 05/01/34 Pool # 780890 | $ 291,050 |
| 154,277 | 5.000%, due 06/01/34 Pool # 255230 | 160,949 |
| 1,302,363 | 5.500%, due 06/01/34 Pool # 780384 | 1,379,907 |
| 17,287 | 7.000%, due 07/01/34 Pool # 792636 | 19,152 |
| 214,777 | 5.500%, due 08/01/34 Pool # 793647 | 227,565 |
| 1,232,913 | 5.500%, due 03/01/35 Pool # 815976 | 1,303,240 |
| 506,867 | 5.500%, due 07/01/35 Pool # 825283 | 535,780 |
| 676,133 | 5.000%, due 08/01/35 Pool # 829670 | 703,686 |
| 252,680 | 5.500%, due 08/01/35 Pool # 826872 | 267,094 |
| 522,948 | 5.000%, due 09/01/35 Pool # 820347 | 544,258 |
| 518,835 | 5.000%, due 09/01/35 Pool # 835699 | 539,977 |
| 650,230 | 5.000%, due 10/01/35 Pool # 797669 | 676,727 |
| 766,893 | 5.500%, due 10/01/35 Pool # 836912 | 810,638 |
| 612,484 | 5.000%, due 11/01/35 Pool # 844504 | 637,443 |
| 629,581 | 5.000%, due 11/01/35 Pool # 844809 | 655,237 |
| 630,008 | 5.000%, due 12/01/35 Pool # 850561 | 655,680 |
| 781,687 | 6.000%, due 07/01/36 Pool # 870749 | 834,508 |
| 659,170 | 6.000%, due 11/01/36 Pool # 902510 | 710,452 |
| 620,492 | 5.500%, due 02/01/37 Pool # 905140 | 654,916 |
| 537,622 | 5.500%, due 05/01/37 Pool # 899323 | 566,998 |
| 949,938 | 5.500%, due 05/01/37 Pool # 928292 | 1,001,844 |
| 743,087 | 6.000%, due 10/01/37 Pool # 947563 | 791,442 |
| 1,200,683 | 6.500%, due 12/01/37 Pool # 889072 | 1,299,251 |
| 1,804,040 | 5.000%, due 04/01/38 Pool # 257160 | 1,870,225 |
| 662,319 | 5.500%, due 07/01/38 Pool # 986805 | 698,509 |
| 1,036,810 | 5.500%, due 07/01/38 Pool # 986973 | 1,093,463 |
| 1,102,803 | 5.000%, due 08/01/38 Pool # 988934 | 1,143,262 |
| 982,861 | 6.500%, due 08/01/38 Pool # 987711 | |
| | | |
| | Freddie Mac - 1.82% | |
| 344,220 | 5.000%, due 05/01/18 Pool # E96322 | 367,924 |
| 4,344 | 8.000%, due 06/01/30 Pool # C01005 | 4,993 |
| 8,222 | 7.000%, due 03/01/31 Pool # C48133 | 9,196 |
| 80,882 | 6.500%, due 01/01/32 Pool # C62333 | 88,950 |
| 1,648,721 | 5.000%, due 07/01/33 Pool # A11325 | 1,723,378 |
| 100,013 | 6.000%, due 10/01/34 Pool # A28439 | 108,409 |
| 90,817 | 6.000%, due 10/01/34 Pool # A28598 | 98,442 |
| 155,960 | 5.000%, due 04/01/35 Pool # A32315 | 162,292 |
| 139,907 | 5.000%, due 04/01/35 Pool # A32316 | 145,586 |
| 1,118,949 | 5.500%, due 11/01/37 Pool # A68787 | |
| | | |
| | Ginnie Mae - 0.04% | |
| 14,995 | 8.000%, due 10/20/15 Pool # 002995 | 16,236 |
| 38,837 | 6.500%, due 02/20/29 Pool # 002714 | 43,066 |
| 21,466 | 6.500%, due 04/20/31 Pool # 003068 | |
| | | |
| | Total Mortgage Backed ( Cost $33,598,116 ) | 35,658,511 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Bond Fund Portfolio of Investments (concluded)
| | |
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 56.33% | |
| | Fannie Mae - 0.56% | |
| $1,095,000 | 4.625%, due 10/15/14 | |
| | Federal Farm Credit Bank - 0.27% | |
| 500,000 | 5.875%, due 10/03/16 | |
| | Freddie Mac - 1.49% | |
| 2,500,000 | 4.875%, due 11/15/13 | 2,747,830 |
| 400,000 | 4.500%, due 01/15/14 | |
| | | |
| | U.S. Treasury Bonds - 4.31% | |
| 2,905,000 | 6.625%, due 02/15/27 | 3,730,656 |
| 5,500,000 | 4.500%, due 05/15/38 | |
| | | |
| | U.S. Treasury Notes - 49.71% | |
| 21,000,000 | 0.875%, due 01/31/11 | 21,080,388 |
| 3,100,000 | 0.875%, due 02/28/11 | 3,112,230 |
| 2,000,000 | 1.000%, due 07/31/11 | 2,010,782 |
| 5,000,000 | 1.750%, due 11/15/11 | 5,079,100 |
| 4,000,000 | 1.125%, due 12/15/11 | 4,023,436 |
| 4,975,000 | 1.375%, due 02/15/12 | 5,020,282 |
| 1,000,000 | 4.625%, due 02/29/12 | 1,068,555 |
| 1,200,000 | 4.500%, due 03/31/12 | 1,281,890 |
| 688,000 | 1.375%, due 05/15/12 | 693,429 |
| 7,425,000 | 3.125%, due 08/31/13 | 7,775,950 |
| 8,850,000 | 4.000%, due 02/15/14 | 9,543,477 |
| 8,360,000 | 4.250%, due 08/15/14 | 9,104,558 |
| 2,000,000 | 2.375%, due 09/30/14 | 2,014,376 |
| 9,000,000 | 2.250%, due 01/31/15 | 8,966,250 |
| 265,000 | 2.500%, due 03/31/15 | 266,325 |
| 5,500,000 | 4.250%, due 08/15/15 | 5,980,821 |
| 4,300,000 | 4.250%, due 11/15/17 | 4,601,335 |
| 7,700,000 | 2.750%, due 02/15/19 | 7,254,239 |
| 2,750,000 | 3.625%, due 08/15/19 | 2,754,296 |
| 5,000,000 | 3.375%, due 11/15/19 | |
| | | |
| | Total U.S. Government and Agency Obligations ( Cost $118,488,598 ) | 120,710,061 |
| | |
| CERTIFICATE OF DEPOSIT - 4.04% | |
| $8,651,045 | State Street Eurodollar, 0.010%, due 05/03/10 | |
| | Total Certificate of Deposit ( Cost $8,651,045 ) | 8,651,045 |
| | |
| INVESTMENT COMPANY - 4.49% | |
| 9,625,598 | SSgA Prime Money Market Fund | |
| | Total Investment Company ( Cost $9,625,598 ) | 9,625,598 |
TOTAL INVESTMENTS - 99.33% ( Cost $206,079,558** ) | |
| NET OTHER ASSETS AND LIABILITIES - 0.67% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $206,080,794. |
| (C) | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." The securities have been determined to be liquid under guidelines established by the Board of Trustees. |
| (D) | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 0.24% of total net assets. |
| (E) | In Default. Issuer is bankrupt. |
| (G) | Floating rate or variable rate note. Rate shown is as of April 30, 2010. |
| (M) | Stated interest rate is contingent upon sufficient collateral market value. If collateral market value falls below a stated level, the issuer will either initiate a clean-up call or increase the stated interest rate. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
High Income Fund Portfolio of Investments
| | |
| CORPORATE NOTES AND BONDS - 97.32% | |
| | Aerospace/Defense - 1.48% | |
$ 750,000 | Alliant Techsystems, Inc., 6.750%, due 04/01/16 | $ 766,875 |
| 500,000 | Moog, Inc., 7.250%, due 06/15/18 | 493,750 |
| 500,000 | TransDigm, Inc., 7.750%, due 07/15/14 | |
| | | |
| | Apparel/Textiles - 0.97% | |
| 400,000 | Iconix Brand Group, Inc. (P), 1.875%, due 06/30/12 | 382,500 |
| 250,000 | Levi Strauss & Co., 9.750%, due 01/15/15 | 262,813 |
| 500,000 | Phillips-Van Heusen Corp. (H), 7.375%, due 05/15/20 | |
| | | |
| | Automotive - 6.07% | |
| 1,400,000 | American Axle & Manufacturing, Holdings, Inc. (C), 9.250%, due 01/15/17 | 1,491,000 |
| 250,000 | ArvinMeritor, Inc., 8.125%, due 09/15/15 | 245,312 |
| 250,000 | ArvinMeritor, Inc. (P), 4.625%, due 03/01/26 | 258,438 |
| 750,000 | Ford Motor Credit Co. LLC, 7.800%, due 06/01/12 | 777,557 |
| 500,000 | Ford Motor Credit Co. LLC, 8.125%, due 01/15/20 | 529,741 |
| 500,000 | Goodyear Tire & Rubber Co./The, 10.500%, due 05/15/16 | 556,875 |
| 500,000 | Goodyear Tire & Rubber Co./The, 8.750%, due 08/15/20 | 525,000 |
| 500,000 | KAR Auction Services, Inc., 8.750%, due 05/01/14 | 513,125 |
| 500,000 | Lear Corp., 8.125%, due 03/15/20 | 510,000 |
| 980,000 | Penske Auto Group, Inc., 7.750%, due 12/15/16 | 960,400 |
| 250,000 | Tenneco, Inc., 8.625%, due 11/15/14 | 257,500 |
| 350,000 | Tenneco, Inc., 8.125%, due 11/15/15 | 363,125 |
| 250,000 | TRW Automotive, Inc. (C), 7.250%, due 03/15/17 | |
| | | |
| | Beverage/Food - 1.05% | |
| 400,000 | Constellation Brands, Inc., 7.250%, due 05/15/17 | 408,000 |
| 125,000 | Michael Foods, Inc., 8.000%, due 11/15/13 | 127,656 |
| 200,000 | NBTY, Inc., 7.125%, due 10/01/15 | 201,250 |
| 300,000 | Pinnacle Foods Finance LLC/, Pinnacle Foods Finance Corp., 9.250%, due 04/01/15 | 312,000 |
| 200,000 | Pinnacle Foods Finance LLC/, Pinnacle Foods Finance Corp. (C), 9.250%, due 04/01/15 | |
| | | |
| | |
| | Building & Construction - 0.42% | |
$ 500,000 | Standard Pacific Corp. (H), 8.375%, due 05/15/18 | $ 507,500 |
| | Building Materials - 1.57% | |
| 500,000 | Masco Corp., 6.125%, due 10/03/16 | 511,287 |
| 250,000 | Owens Corning, 9.000%, due 06/15/19 | 301,832 |
| 500,000 | USG Corp. (C), 9.750%, due 08/01/14 | 540,000 |
| 500,000 | USG Corp., 9.500%, due 01/15/18 | |
| | | |
| | Chemicals - 3.21% | |
| 750,000 | Ashland, Inc. (C), 9.125%, due 06/01/17 | 855,000 |
| 400,000 | Ferro Corp. (P), 6.500%, due 08/15/13 | 397,000 |
| 750,000 | Hexion Finance Escrow LLC/, Hexion Escrow Corp. (C), 8.875%, due 02/01/18 | 737,813 |
| 600,000 | Huntsman International LLC, 7.875%, due 11/15/14 | 609,000 |
| 500,000 | Huntsman International LLC (C), 5.500%, due 06/30/16 | 455,000 |
| 750,000 | LBI Escrow Corp. (C), 8.000%, due 11/01/17 | |
| | | |
| | Consumer Products - 2.62% | |
| 250,000 | ACCO Brands Corp. (C), 10.625%, due 03/15/15 | 278,125 |
| 500,000 | ACCO Brands Corp., 7.625%, due 08/15/15 | 476,250 |
| 500,000 | Central Garden and Pet Co., 8.250%, due 03/01/18 | 511,250 |
| 250,000 | Easton-Bell Sports, Inc. (C), 9.750%, due 12/01/16 | 266,250 |
| 500,000 | Jarden Corp., 8.000%, due 05/01/16 | 526,875 |
| 250,000 | Jarden Corp., 7.500%, due 05/01/17 | 255,625 |
| 300,000 | Leslie’s Poolmart, 7.750%, due 02/01/13 | 303,750 |
| 250,000 | Sealy Mattress Co., 8.250%, due 06/15/14 | 252,500 |
| 250,000 | Visant Holding Corp., 8.750%, due 12/01/13 | |
| | | |
| | Environmental - 1.10% | |
| 350,000 | Casella Waste Systems, Inc., 9.750%, due 02/01/13 | 352,625 |
| 200,000 | Covanta Holding Corp. (P), 1.000%, due 02/01/27 | 191,000 |
| 500,000 | Waste Services, Inc., 9.500%, due 04/15/14 | 513,750 |
| 250,000 | WCA Waste Corp., 9.250%, due 06/15/14 | |
| | | |
| | Finance - 0.52% | |
| 650,000 | CIT Group, Inc. 7.000%, due 05/01/16 | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
High Income Fund Portfolio of Investments (continued)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Food & Drug Retailers - 2.42% | |
$ 850,000 | Ingles Markets, Inc., 8.875%, due 05/15/17 | $ 898,875 |
| 450,000 | Stater Brothers Holdings, 8.125%, due 06/15/12 | 451,688 |
| 250,000 | Stater Brothers Holdings, 7.750%, due 04/15/15 | 253,750 |
| 750,000 | SUPERVALU, Inc., 8.000%, due 05/01/16 | 763,125 |
| 500,000 | Tops Markets LLC (C), 10.125%, due 10/15/15 | |
| | | |
| | Forestry/Paper - 0.89% | |
| 250,000 | Cascades, Inc. (C)(D), 7.875%, due 01/15/20 | 252,500 |
| 500,000 | Graphic Packaging International, Inc., 9.500%, due 06/15/17 | 537,500 |
| 250,000 | Rock-Tenn Co. (C), 9.250%, due 03/15/16 | |
| | | |
| | Gaming - 5.18% | |
| 500,000 | American Casino & Entertainment, Properties LLC, 11.000%, due 06/15/14 | 491,250 |
| 500,000 | Ameristar Casinos, Inc., 9.250%, due 06/01/14 | 525,000 |
| 500,000 | Boyd Gaming Corp., 6.750%, due 04/15/14 | 462,500 |
| 195,000 | Global Cash Access, Inc./, Global Cash Finance Corp., 8.750%, due 03/15/12 | |
| 750,000 | Isle of Capri Casinos, Inc., 7.000%, due 03/01/14 | 693,750 |
| 750,000 | MGM Mirage, 8.375%, due 02/01/11 | 759,375 |
| 500,000 | MGM Mirage, 6.750%, due 09/01/12 | 482,500 |
| 250,000 | MGM Mirage, 6.750%, due 04/01/13 | 237,500 |
| 150,000 | Penn National Gaming, Inc., 6.750%, due 03/01/15 | 149,250 |
| 250,000 | Penn National Gaming, Inc. (C), 8.750%, due 08/15/19 | 260,625 |
| 400,000 | Pinnacle Entertainment, Inc., 8.250%, due 03/15/12 | 400,500 |
| 500,000 | Pinnacle Entertainment, Inc. (C), 8.625%, due 08/01/17 | 522,500 |
| 500,000 | Pinnacle Entertainment, Inc. (C)(H)(L), 8.750%, due 05/15/20 | 500,000 |
| 500,000 | Scientific Games International, Inc. (C), 7.875%, due 06/15/16 | |
| | | |
| | General Industrial & Manufacturing - 3.08% | |
| 750,000 | Baldor Electric Co., 8.625%, due 02/15/17 | 793,125 |
| 500,000 | RBS Global, Inc./Rexnord LLC (C), 8.500%, due 05/01/18 | 501,250 |
| 750,000 | SPX Corp., 7.625%, due 12/15/14 | 793,125 |
| 750,000 | Terex Corp., 8.000%, due 11/15/17 | 731,250 |
| | |
| $1,000,000 | Trinity Industries, Inc. (P), 3.875%, due 06/01/36 | |
| | | |
| | Health Care - 6.20% | |
| 300,000 | Accellent, Inc., 10.500%, due 12/01/13 | 302,250 |
| 500,000 | Biomet, Inc., 10.000%, due 10/15/17 | 550,000 |
| 1,000,000 | Biomet, Inc., 11.625%, due 10/15/17 | 1,120,000 |
| 250,000 | DaVita, Inc., 7.250%, due 03/15/15 | 255,000 |
| 250,000 | HCA, Inc./DE, 5.750%, due 03/15/14 | 242,500 |
| 350,000 | HCA, Inc./DE, 6.500%, due 02/15/16 | 340,813 |
| 200,000 | HCA, Inc./DE, 9.250%, due 11/15/16 | 216,250 |
| 500,000 | Hologic, Inc. (P), 2.000%, due 12/15/37 | 450,000 |
| 500,000 | Omega Healthcare Investors, Inc.,, REIT (N), 7.000%, due 04/01/14 | 503,125 |
| 500,000 | Omnicare, Inc., 6.875%, due 12/15/15 | 500,000 |
| 750,000 | Psychiatric Solutions, Inc., Series 1, 7.750%, due 07/15/15 | 765,000 |
| 400,000 | Service Corp. International/US, 7.375%, due 10/01/14 | 408,000 |
| 500,000 | Service Corp. International/US, 6.750%, due 04/01/16 | 500,000 |
| 250,000 | Service Corp. International/US, 7.625%, due 10/01/18 | 255,625 |
| 1,000,000 | Vanguard Health Holding Co., II LLC/, Vanguard Holdings Co., II, Inc. (C), 8.000%, due 02/01/18 | |
| | | |
| | Hotels - 0.63% | |
| 750,000 | Wyndham Worldwide Corp., 6.000%, due 12/01/16 | |
| | Investment Management - 0.61% | |
| 725,000 | Nuveen Investments, Inc., 10.500%, due 11/15/15 | |
| | Leisure & Entertainment - 0.88% | |
| 750,000 | Cinemark USA, Inc., 8.625%, due 06/15/19 | 795,000 |
| 250,000 | Speedway Motorsports, Inc., 6.750%, due 06/01/13 | |
| | | |
| | Media - Broadcasting - 2.34% | |
| 500,000 | Allbritton Communications Co. (C), 8.000%, due 05/15/18 | 500,000 |
| 500,000 | Belo Corp., 8.000%, due 11/15/16 | 522,500 |
| 500,000 | Gray Television, Inc. (C), 10.500%, due 06/29/15 | 501,875 |
| 500,000 | LIN Television Corp., 6.500%, due 05/15/13 | 495,000 |
| 250,000 | Sirius XM Radio, Inc. (P), 3.250%, due 10/15/11 | 241,562 |
| 500,000 | XM Satellite Radio, Inc. (C)(P), 7.000%, due 12/01/14 | |
| | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
High Income Fund Portfolio of Investments (continued)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Media - Cable - 3.41% | |
$ 250,000 | Cablevision Systems Corp., 7.750%, due 04/15/18 | $ 253,750 |
| 250,000 | Cablevision Systems Corp., 8.000%, due 04/15/20 | 254,375 |
| 1,000,000 | CCO Holdings LLC/, CCO Holdings Capital Corp. (C), 8.125%, due 04/30/20 | 1,022,500 |
| 500,000 | Mediacom Broadband LLC/, Mediacom Broadband Corp., 8.500%, due 10/15/15 | 513,750 |
| 500,000 | Mediacom LLC/, Mediacom Capital Corp. (C), 9.125%, due 08/15/19 | 515,000 |
| 750,000 | Videotron Ltee (D), 6.875%, due 01/15/14 | 759,375 |
| 700,000 | Virgin Media Finance PLC (D), 9.125%, due 08/15/16 | |
| | | |
| | Media - Diversified & Services - 6.16% | |
| 400,000 | Hughes Network Systems LLC/, HNS Finance Corp., 9.500%, due 04/15/14 | 412,000 |
| 300,000 | Intelsat Jackson Holdings S.A. (D), 11.250%, due 06/15/16 | 324,750 |
| 1,000,000 | Intelsat Luxembourg S.A. (D), 11.250%, due 02/04/17 | 1,047,500 |
| 950,000 | Intelsat S.A. (D), 6.500%, due 11/01/13 | 938,125 |
| 500,000 | Interpublic Group of Cos., Inc./The, 10.000%, due 07/15/17 | 571,875 |
| 250,000 | Interpublic Group of Cos., Inc./The (P), 4.250%, due 03/15/23 | 267,812 |
| 500,000 | Lamar Media Corp., Series C, 6.625%, due 08/15/15 | 485,000 |
| 500,000 | Liberty Media LLC (P), 3.125%, due 03/30/23 | 551,250 |
| 200,000 | Nielsen Finance LLC/, Nielsen Finance Co., 11.625%, due 02/01/14 | 227,000 |
| 1,000,000 | Nielsen Finance LLC/, Nielsen Finance Co., 10.000%, due 08/01/14 | 1,050,000 |
| 650,000 | Telesat Canada/Telesat LLC, 11.000%, due 11/01/15 | 728,000 |
| 500,000 | Viasat, Inc. (C), 8.875%, due 09/15/16 | 511,875 |
| 250,000 | WMG Acquisition Corp., 7.375%, due 04/15/14 | |
| | | |
| | Metals and Mining - 1.98% | |
| 500,000 | Arch Coal, Inc. (C), 8.750%, due 08/01/16 | 532,500 |
| 450,000 | Arch Western Finance LLC, 6.750%, due 07/01/13 | 453,375 |
| 300,000 | Cloud Peak Energy Resources LLC/, Cloud Peak Energy Finance Corp. (C), 8.500%, due 12/15/19 | 309,000 |
| 1,000,000 | Consol Energy, Inc. (C), 8.250%, due 04/01/20 | |
| | | |
| | |
| | Non Food & Drug Retailers - 5.29% | |
$ 500,000 | AutoNation, Inc., 6.750%, due 04/15/18 | $ 501,875 |
| 500,000 | Bon-Ton Department Stores, Inc./The, 10.250%, due 03/15/14 | 506,250 |
| 250,000 | Ltd. Brands, Inc., 6.900%, due 07/15/17 | 260,000 |
| 300,000 | Ltd. Brands, Inc., 8.500%, due 06/15/19 | 333,000 |
| 250,000 | Michaels Stores, Inc. (B), 0.000%, due 11/01/16 | 231,562 |
| 1,500,000 | Michaels Stores, Inc., 11.375%, due 11/01/16 | 1,638,750 |
| 500,000 | Pantry, Inc./The, 7.750%, due 02/15/14 | 490,000 |
| 750,000 | QVC, Inc. (C), 7.500%, due 10/01/19 | 766,875 |
| 300,000 | Sally Holdings LLC/, Sally Capital, Inc., 9.250%, due 11/15/14 | 317,625 |
| 250,000 | Toys R Us Property Co. LLC (C), 8.500%, due 12/01/17 | 264,375 |
| 500,000 | Toys R US, Inc., 7.375%, due 10/15/18 | 488,750 |
| 500,000 | Yankee Acquisition Corp./, MA, Series B, 8.500%, due 02/15/15 | |
| | | |
| | Oil & Gas - 5.92% | |
| 466,000 | Chesapeake Energy Corp., 6.875%, due 01/15/16 | 464,835 |
| 250,000 | Chesapeake Energy Corp., 6.500%, due 08/15/17 | 243,750 |
| 750,000 | Complete Production Services, Inc., 8.000%, due 12/15/16 | 766,875 |
| 250,000 | Continental Resources, Inc./OK, 8.250%, due 10/01/19 | 268,750 |
| 250,000 | Denbury Resources, Inc., 7.500%, due 04/01/13 | 250,312 |
| 500,000 | Denbury Resources, Inc., 9.750%, due 03/01/16 | 552,500 |
| 365,000 | EXCO Resources, Inc., 7.250%, due 01/15/11 | 364,544 |
| 350,000 | Helix Energy Solutions Group, Inc. (C), 9.500%, due 01/15/16 | 364,000 |
| 500,000 | Helix Energy Solutions Group, Inc. (P), 3.250%, due 12/15/25 | 458,125 |
| 250,000 | Key Energy Services, Inc., 8.375%, due 12/01/14 | 255,000 |
| 250,000 | Mariner Energy, Inc., 7.500%, due 04/15/13 | 258,750 |
| 250,000 | Mariner Energy, Inc., 8.000%, due 05/15/17 | 275,625 |
| 500,000 | Petroplus Finance, Ltd. (C)(D), 6.750%, due 05/01/14 | 475,000 |
| 250,000 | Petroplus Finance, Ltd. (C)(D), 7.000%, due 05/01/17 | 227,500 |
| 500,000 | Pioneer Natural Resources Co., 6.650%, due 03/15/17 | 514,871 |
| 500,000 | Plains Exploration & Production Co., 10.000%, due 03/01/16 | 553,750 |
| 250,000 | Range Resources Corp., 6.375%, due 03/15/15 | 252,500 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
High Income Fund Portfolio of Investments (continued)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Oil & Gas (continued) | |
$ 500,000 | Range Resources Corp., 7.250%, due 05/01/18 | $ 517,500 |
| | | 7,064,187 |
| | Packaging - 2.60% | |
| 1,000,000 | Crown Americas LLC/, Crown Americas Capital Corp. II (C), 7.625%, due 05/15/17 | 1,041,250 |
| 500,000 | Graham Packaging Co., L.P./, GPC Capital Corp. I, 9.875%, due 10/15/14 | 521,250 |
| 250,000 | Greif, Inc., 6.750%, due 02/01/17 | 251,875 |
| 1,000,000 | Reynolds Group Issuer, Inc./, Reynolds Group Issuer LLC (C), 7.750%, due 10/15/16 | 1,035,000 |
| 250,000 | Reynolds Group Issuer, Inc./, Reynolds Group Issuer LLC (C)(H), 8.500%, due 05/15/18 | |
| | | |
| | Printing & Publishing - 0.86% | |
| 500,000 | Cenveo Corp. (C), 8.875%, due 02/01/18 | 516,250 |
| 500,000 | Reader’s Digest Association, Inc./, The (C)(G), 9.500%, due 02/15/17 | |
| | | |
| | Steel - 0.74% | |
| 500,000 | AK Steel Corp. (H), 7.625%, due 05/15/20 | 515,000 |
| 350,000 | Steel Dynamics, Inc., 7.375%, due 11/01/12 | |
| | | |
| | Support Services - 8.02% | |
| 250,000 | Affinion Group, Inc., 10.125%, due 10/15/13 | 259,375 |
| 750,000 | Affinion Group, Inc., 11.500%, due 10/15/15 | 791,250 |
| 1,000,000 | ARAMARK Corp., 8.500%, due 02/01/15 | 1,026,250 |
| 500,000 | Avis Budget Car Rental LLC/, Avis Budget Finance, Inc., 7.625%, due 05/15/14 | 510,000 |
| 250,000 | Avis Budget Car Rental LLC/, Avis Budget Finance, Inc. (C), 9.625%, due 03/15/18 | 270,000 |
| 500,000 | FTI Consulting, Inc., 7.750%, due 10/01/16 | 514,375 |
| 250,000 | Hertz Corp./The, 8.875%, due 01/01/14 | 258,125 |
| 250,000 | Hertz Corp./The, 10.500%, due 01/01/16 | 268,125 |
| 700,000 | Iron Mountain, Inc., 7.750%, due 01/15/15 | 707,875 |
| 350,000 | Mac-Gray Corp., 7.625%, due 08/15/15 | 340,375 |
| 1,000,000 | RSC Equipment Rental, Inc., 9.500%, due 12/01/14 | 1,027,500 |
| 750,000 | ServiceMaster Co./The, PIK (C), 10.750%, due 07/15/15 | 799,688 |
| 450,000 | United Rentals North America, Inc., 7.750%, due 11/15/13 | 453,375 |
| 250,000 | United Rentals North America, Inc., 10.875%, due 06/15/16 | 281,250 |
| 700,000 | United Rentals North America, Inc., 9.250%, due 12/15/19 | 749,000 |
| 750,000 | West Corp./Old, 9.500%, due 10/15/14 | 776,250 |
| | |
$ 500,000 | West Corp./Old, 11.000%, due 10/15/16 | |
| | | |
| | Technology - 5.31% | |
| 250,000 | Advanced Micro Devices, Inc. (C), 8.125%, due 12/15/17 | 257,500 |
| 1,000,000 | Alcatel-Lucent USA, Inc. (P), 2.750%, due 06/15/25 | 881,250 |
| 135,000 | Da-Lite Screen Co., Inc., 9.500%, due 05/15/11 | 140,063 |
| 500,000 | Equinix, Inc., 8.125%, due 03/01/18 | 520,625 |
| 350,000 | GXS Worldwide, Inc. (C), 9.750%, due 06/15/15 | 343,000 |
| 600,000 | Sanmina-SCI Corp., 8.125%, due 03/01/16 | 607,500 |
| 500,000 | SAVVIS, Inc. (P), 3.000%, due 05/15/12 | 473,750 |
| 1,100,000 | Sungard Data Systems, Inc., 9.125%, due 08/15/13 | 1,128,875 |
| 500,000 | Sungard Data Systems, Inc., 10.625%, due 05/15/15 | 551,250 |
| 400,000 | Sungard Data Systems, Inc., 10.250%, due 08/15/15 | 421,500 |
| 500,000 | Syniverse Technologies, Inc.,, Series B, 7.750%, due 08/15/13 | 507,500 |
| 500,000 | Telcordia Technologies, Inc. (C), 11.000%, due 05/01/18 | |
| | | |
| | Telecommunications - 8.15% | |
| 250,000 | Cincinnati Bell Telephone Co. LLC, 6.300%, due 12/01/28 | 201,250 |
| 50,000 | Level 3 Communications, Inc. (P), 5.250%, due 12/15/11 | 49,250 |
| 950,000 | Level 3 Communications, Inc. (P), 3.500%, due 06/15/12 | 878,750 |
| 500,000 | Nextel Communications, Inc.,, Series D, 7.375%, due 08/01/15 | 486,875 |
| 1,000,000 | New Communications , Holdings Corp. (C), 8.500%, due 04/15/20 | 1,030,000 |
| 500,000 | Nordic Telephone Co. Holdings ApS, (C)(D), 8.875%, due 05/01/16 | 535,625 |
| 500,000 | PAETEC Holding Corp. (C), 8.875%, due 06/30/17 | 514,375 |
| 385,000 | Qwest Communications, International, Inc., 7.500%, due 02/15/14 | 391,738 |
| 350,000 | Qwest Communications, International, Inc., Series B, 7.500%, due 02/15/14 | 356,125 |
| 500,000 | Qwest Communications, International, Inc. (C), 7.125%, due 04/01/18 | 516,250 |
| 500,000 | SBA Communications Corp. (P), 1.875%, due 05/01/13 | 523,125 |
| 500,000 | Sprint Nextel Corp., 8.375%, due 08/15/17 | 516,875 |
| 500,000 | TW Telecom Holdings, Inc. (C), 8.000%, due 03/01/18 | 517,500 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
High Income Fund Portfolio of Investments (concluded)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Telecommunications (continued) | |
| $1,500,000 | Wind Acquisition Finance S.A., (C)(D), 11.750%, due 07/15/17 | $ 1,668,750 |
| 300,000 | Windstream Corp., 8.625%, due 08/01/16 | 307,125 |
| 1,000,000 | Windstream Corp., 7.875%, due 11/01/17 | 992,500 |
| 250,000 | Windstream Corp., 7.000%, due 03/15/19 | |
| | | |
| | Transportation - 0.88% | |
| 250,000 | Bristow Group, Inc., 7.500%, due 09/15/17 | 252,812 |
| 300,000 | Gulfmark Offshore, Inc., 7.750%, due 07/15/14 | 298,500 |
| 500,000 | Hornbeck Offshore Services, Inc.,, Series B, 6.125%, due 12/01/14 | |
| | | |
| | Utilities - 6.76% | |
| 500,000 | AES Corp./The, 8.000%, due 10/15/17 | 515,000 |
| 250,000 | AES Corp./The, 8.000%, due 06/01/20 | 256,250 |
| 500,000 | Calpine Corp. (C), 7.250%, due 10/15/17 | 485,000 |
| 250,000 | El Paso Corp., 7.000%, due 06/15/17 | 256,847 |
| 1,000,000 | El Paso Corp., 7.250%, due 06/01/18 | 1,039,407 |
| 500,000 | Ferrellgas L.P./, Ferrellgas Finance Corp. (C), 9.125%, due 10/01/17 | 530,000 |
| 500,000 | Ferrellgas Partners L.P./, Ferrellgas Partners Finance Corp., 8.625%, due 06/15/20 | 508,750 |
| 1,000,000 | Inergy L.P./Inergy Finance Corp., 6.875%, due 12/15/14 | 1,000,000 |
| 500,000 | MarkWest Energy Partners L.P./, MarkWest Energy Finance Corp., Series B, 8.750%, due 04/15/18 | 518,125 |
| 480,000 | Mirant Americas Generation LLC, 8.300%, due 05/01/11 | 493,200 |
| 750,000 | Mirant Americas Generation LLC, 8.500%, due 10/01/21 | 727,500 |
| 250,000 | Mirant North America LLC, 7.375%, due 12/31/13 | 256,875 |
| 750,000 | NRG Energy, Inc., 7.375%, due 02/01/16 | 742,500 |
| 250,000 | NRG Energy, Inc., 7.375%, due 01/15/17 | 246,250 |
| 250,000 | RRI Energy, Inc., 7.625%, due 06/15/14 | 248,437 |
| 250,000 | RRI Energy, Inc., 7.875%, due 06/15/17 | |
| | | |
| | Total Corporate Notes and Bonds ( Cost $107,539,881 ) | 116,144,769 |
| | |
| INVESTMENT COMPANY - 3.90% | |
| 4,651,664 | SSgA Prime Money Market Fund (N) | |
| | Total Investment Company ( Cost $4,651,664 ) | 4,651,664 |
TOTAL INVESTMENTS - 101.22% ( Cost $112,191,545** ) | |
| NET OTHER ASSETS AND LIABILITIES - (1.22)% | |
| TOTAL NET ASSETS - 100.00% | |
| ** | Aggregate cost for Federal tax purposes was $112,208,691. |
| (B) | Represents a security with a specified coupon until a predetermined date, at which time the stated rate is adjusted to a new contract rate. |
| (C) | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." The securities have been determined to be liquid under guidelines established by the Board of Trustees. |
| (D) | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 5.80% of total net assets. |
| (G) | Floating rate or variable rate note. Rate shown is as of April 30, 2010. |
| (H) | Security purchased on a delayed delivery or when-issued basis. Rate shown is at issue date. |
| (L) | Security valued at fair value using methods determined in good faith by or at the discretion of the Board of Trustees (see Note 2). |
| (N) | Security segregated for forward or when-issued purchase commitments outstanding as of April 30, 2010. |
| (P) | Convertible. |
| PIK | Payment in Kind. |
| PLC | Public Limited Company. |
| REIT | Real Estate Investment Trust. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Diversified Income Fund Portfolio of Investments
| | |
| COMMON STOCKS - 47.45% | |
| | Consumer Discretionary - 2.69% | |
| 9,600 | Darden Restaurants, Inc. | $ 429,600 |
| 16,700 | McDonald’s Corp. | 1,178,853 |
| 5,000 | VF Corp. | 432,100 |
| 10,400 | Yum! Brands, Inc. | |
| | | |
| | Consumer Staples - 9.02% | |
| 42,000 | Altria Group, Inc. | 889,980 |
| 20,400 | Avon Products, Inc. | 659,532 |
| 19,800 | Coca-Cola Co./The | 1,058,310 |
| 6,400 | Diageo PLC, ADR | 438,393 |
| 11,000 | Kimberly-Clark Corp. | 673,860 |
| 29,551 | Kraft Foods, Inc., Class A | 874,710 |
| 16,500 | PepsiCo, Inc./NC | 1,076,130 |
| 31,000 | Philip Morris International, Inc. | 1,521,480 |
| 7,000 | Procter & Gamble Co./The | 437,780 |
| 22,000 | Sysco Corp. | |
| | | |
| | Energy - 4.87% | |
| 28,200 | Chevron Corp. | 2,296,608 |
| 22,500 | ConocoPhillips | 1,331,775 |
| 27,000 | Marathon Oil Corp. | |
| | | |
| | Financials - 5.77% | |
| 14,200 | Axis Capital Holdings, Ltd. | 443,697 |
| 23,500 | Bank of New York Mellon Corp./The | 731,555 |
| 14,500 | Morgan Stanley | 438,190 |
| 13,400 | NYSE Euronext | 437,242 |
| 17,000 | Travelers Cos., Inc./The | 862,580 |
| 23,500 | US Bancorp | 629,095 |
| 33,000 | Wells Fargo & Co. | 1,092,630 |
| 20,000 | Willis Group Holdings PLC | |
| | | |
| | Health Care - 6.81% | |
| 12,000 | Eli Lilly & Co. | 419,640 |
| 29,200 | Johnson & Johnson | 1,877,560 |
| 44,000 | Merck & Co., Inc. | 1,541,760 |
| 12,300 | Novartis AG, ADR | 625,455 |
| 108,962 | Pfizer, Inc. | |
| | | |
| | Industrials - 6.54% | |
| 7,600 | 3M Co. | 673,892 |
| 6,000 | Boeing Co./The | 434,580 |
| 16,400 | EI du Pont de Nemours & Co. | 653,376 |
| 13,800 | Honeywell International, Inc. | 655,086 |
| | |
| 9,000 | Illinois Tool Works, Inc. | $ 459,900 |
| 10,700 | Lockheed Martin Corp. | 908,323 |
| 7,800 | Norfolk Southern Corp. | 462,774 |
| 6,800 | United Parcel Service, Inc., Class B | 470,152 |
| 5,900 | United Technologies Corp. | 442,205 |
| 25,300 | Waste Management, Inc. | |
| | | |
| | Information Technology - 4.11% | |
| 12,300 | Automatic Data Processing, Inc. | 533,328 |
| 73,600 | Intel Corp. | 1,680,288 |
| 3,500 | International Business Machines Corp. | 451,500 |
| 23,000 | Maxim Integrated Products, Inc. | 446,660 |
| 15,300 | Paychex, Inc. | 468,180 |
| 5,500 | QUALCOMM, Inc. | |
| | | |
| | Materials - 0.99% | |
| 6,000 | Air Products & Chemicals, Inc. | 460,680 |
| 10,000 | Nucor Corp. | |
| | | |
| | Telecommunication Services - 3.28% | |
| 67,092 | AT&T, Inc. | 1,748,417 |
| 29,500 | Verizon Communications, Inc. | 852,255 |
| 19,000 | Vodafone Group PLC, ADR | |
| | | |
| | Utilities - 3.37% | |
| 10,000 | Consolidated Edison, Inc. | 452,000 |
| 26,000 | Duke Energy Corp. | 436,280 |
| 12,100 | Exelon Corp. | 527,439 |
| 13,600 | FirstEnergy Corp. | 515,032 |
| 10,500 | Progress Energy, Inc. | 419,160 |
| 22,100 | Southern Co. | |
| | | |
| | Total Common Stocks ( Cost $40,394,651 ) | 43,793,215 |
| | |
| ASSET BACKED - 1.24% | |
$ 98,971 | ABSC Long Beach Home Equity Loan Trust,, Series 2000-LB1, Class AF5 (M), 8.550%, due 09/21/30 | 96,312 |
| 525,000 | CarMax Auto Owner Trust,, Series 2007-2, Class B, 5.370%, due 03/15/13 | 541,756 |
| 465,000 | Chase Issuance Trust,, Series 2007-A17, Class A, 5.120%, due 10/15/14 | |
| | Total Asset Backed ( Cost $1,091,841 ) | 1,142,610 |
| CORPORATE NOTES AND BONDS - 20.13% | |
| | Consumer Discretionary - 1.78% | |
| 750,000 | American Association of Retired Persons (C), 7.500%, due 05/01/31 | 789,218 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Diversified Income Fund Portfolio of Investments (continued)
| | |
CORPORATE NOTES AND BONDS (continued) | |
| | Consumer Discretionary -(continued) | |
$ 130,000 | DR Horton, Inc., 5.250%, due 02/15/15 | $ 125,450 |
| 325,000 | ERAC USA Finance LLC (C), 6.700%, due 06/01/34 | 327,627 |
| 400,000 | Royal Caribbean Cruises, Ltd. (D), 7.250%, due 06/15/16 | |
| | | |
| | Consumer Staples - 0.89% | |
| 475,000 | Kraft Foods, Inc., 6.500%, due 11/01/31 | 509,454 |
| 310,000 | WM Wrigley Jr. Co., 4.300%, due 07/15/10 | |
| | | |
| | Energy - 1.26% | |
| 500,000 | Chesapeake Energy Corp., 6.375%, due 06/15/15 | 495,000 |
| 150,000 | Hess Corp., 7.875%, due 10/01/29 | 183,159 |
| 400,000 | Transocean, Inc., 7.500%, due 04/15/31 | |
| | | |
| | Financials - 5.93% | |
| 500,000 | American General Finance Corp.,, Series H, 4.625%, due 09/01/10 | 499,158 |
| 250,000 | Bear Stearns Cos. LLC/The, 7.250%, due 02/01/18 | 288,404 |
| 210,000 | General Electric Global Insurance, Holding Corp., 7.000%, due 02/15/26 | 227,214 |
| 205,000 | General Electric Global Insurance, Holding Corp., 7.750%, due 06/15/30 | 225,346 |
| 335,000 | HCP, Inc., 6.700%, due 01/30/18 | 350,049 |
| 410,000 | Lehman Brothers Holdings, Inc. (E), 5.750%, due 01/03/17 | 512 |
| 315,000 | Merrill Lynch & Co., Inc., 6.150%, due 04/25/13 | 340,866 |
| 600,000 | National Rural Utilities, Cooperative Finance Corp., Series C, 7.250%, due 03/01/12 | 663,181 |
| 600,000 | Nationwide Health Properties, Inc., Series D, 8.250%, due 07/01/12 | 659,270 |
| 760,000 | Nissan Motor Acceptance Corp. (C), 5.625%, due 03/14/11 | 788,312 |
| 140,000 | Simon Property Group L.P., 5.875%, due 03/01/17 | 149,825 |
| 355,000 | SLM Corp., 5.125%, due 08/27/12 | 358,189 |
| 500,000 | US Bank NA/Cincinnati, OH, 6.300%, due 02/04/14 | 562,318 |
| 330,000 | Wells Fargo & Co., 5.250%, due 10/23/12 | |
| | | |
| | Health Care - 2.29% | |
| 1,050,000 | Amgen, Inc., 5.850%, due 06/01/17 | 1,182,705 |
| 300,000 | Eli Lilly & Co., 6.570%, due 01/01/16 | 336,575 |
| 195,000 | Genentech, Inc., 5.250%, due 07/15/35 | 187,608 |
| | |
$ 220,000 | Merck & Co., Inc., 5.750%, due 11/15/36 | $ 233,686 |
| 150,000 | Wyeth, 6.500%, due 02/01/34 | |
| | | |
| | Industrials - 1.25% | |
| 150,000 | Boeing Co./The, 8.625%, due 11/15/31 | 204,477 |
| 175,000 | Burlington Northern Santa Fe LLC, 8.125%, due 04/15/20 | 216,348 |
| 239,000 | Norfolk Southern Corp., 5.590%, due 05/17/25 | 242,443 |
| 260,000 | Norfolk Southern Corp., 7.050%, due 05/01/37 | 311,372 |
| 150,000 | Waste Management, Inc., 7.125%, due 12/15/17 | |
| | | |
| | Information Technology - 0.29% | |
| 240,000 | Cisco Systems, Inc., 5.500%, due 02/22/16 | 270,687 |
| | Materials - 0.21% | |
| 175,000 | Westvaco Corp., 8.200%, due 01/15/30 | 195,536 |
| | Telecommunication Services - 0.99% | |
| 415,000 | Comcast Cable Communications, Holdings, Inc., 9.455%, due 11/15/22 | 560,317 |
| 315,000 | Rogers Communications, Inc. (D), 6.250%, due 06/15/13 | |
| | | |
| | Utilities - 5.24% | |
| 500,000 | Energy East Corp., 8.050%, due 11/15/10 | 519,666 |
| 175,000 | Interstate Power & Light Co., 6.250%, due 07/15/39 | 189,146 |
| 1,000,000 | MidAmerican Energy Co., 5.650%, due 07/15/12 | 1,084,090 |
| 400,000 | Nevada Power Co., Series R, 6.750%, due 07/01/37 | 445,178 |
| 350,000 | Progress Energy, Inc., 7.750%, due 03/01/31 | 428,011 |
| 126,000 | Sierra Pacific Power Co., Series M, 6.000%, due 05/15/16 | 139,087 |
| 500,000 | Southwestern Electric Power Co.,, Series E, 5.550%, due 01/15/17 | 529,695 |
| 600,000 | Westar Energy, Inc., 6.000%, due 07/01/14 | 667,548 |
| 750,000 | Wisconsin Electric Power Co., 6.500%, due 06/01/28 | |
| | | |
| | Total Corporate Notes and Bonds ( Cost $17,925,132 ) | 18,573,297 |
| MORTGAGE BACKED - 15.74% | |
| | Fannie Mae - 13.80% | |
| 169,295 | 4.000%, due 04/01/15 Pool # 255719 | 174,183 |
| 221,345 | 5.500%, due 04/01/16 Pool # 745444 | 233,063 |
| 37,440 | 6.000%, due 05/01/16 Pool # 582558 | 40,410 |
| 422,285 | 5.000%, due 12/01/17 Pool # 672243 | 450,705 |
| 408,416 | 5.000%, due 05/01/20 Pool # 813965 | 434,881 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Diversified Income Fund Portfolio of Investments (continued)
| | |
MORTGAGE BACKED (continued) | |
| | Fannie Mae (continued) | |
$ 585,123 | 4.500%, due 09/01/20 Pool # 835465 | $ 615,196 |
| 65,399 | 6.000%, due 05/01/21 Pool # 253847 | 71,843 |
| 17,180 | 7.000%, due 12/01/29 Pool # 762813 | 19,104 |
| 41,889 | 7.000%, due 11/01/31 Pool # 607515 | 46,869 |
| 40,078 | 7.000%, due 05/01/32 Pool # 644591 | 44,842 |
| 269,148 | 6.500%, due 06/01/32 Pool # 545691 | 296,542 |
| 433,010 | 5.500%, due 10/01/33 Pool # 254904 | 459,604 |
| 17,849 | 5.000%, due 05/01/34 Pool # 782214 | 18,621 |
| 377,524 | 5.000%, due 06/01/34 Pool # 255230 | 393,852 |
| 10,866 | 7.000%, due 07/01/34 Pool # 792636 | 12,039 |
| 131,368 | 5.500%, due 08/01/34 Pool # 793647 | 139,190 |
| 294,424 | 5.500%, due 03/01/35 Pool # 810075 | 311,218 |
| 756,802 | 5.500%, due 03/01/35 Pool # 815976 | 799,971 |
| 393,101 | 5.000%, due 08/01/35 Pool # 829670 | 409,119 |
| 311,934 | 5.000%, due 09/01/35 Pool # 820347 | 324,645 |
| 322,948 | 5.000%, due 09/01/35 Pool # 835699 | 336,108 |
| 591,118 | 5.000%, due 10/01/35 Pool # 797669 | 615,206 |
| 428,739 | 5.000%, due 11/01/35 Pool # 844504 | 446,210 |
| 400,643 | 5.000%, due 11/01/35 Pool # 844809 | 416,969 |
| 383,483 | 5.000%, due 12/01/35 Pool # 850561 | 399,110 |
| 129,944 | 5.500%, due 02/01/36 Pool # 851330 | 137,356 |
| 539,374 | 5.500%, due 09/01/36 Pool # 831820 | 569,298 |
| 383,904 | 6.000%, due 09/01/36 Pool # 831741 | 409,845 |
| 146,170 | 5.500%, due 10/01/36 Pool # 896340 | 154,280 |
| 486,923 | 5.500%, due 10/01/36 Pool # 901723 | 513,937 |
| 518,138 | 6.000%, due 11/01/36 Pool # 902510 | 558,449 |
| 573,051 | 5.500%, due 12/01/36 Pool # 902853 | 604,844 |
| 560,344 | 5.500%, due 12/01/36 Pool # 903059 | 591,432 |
| 476,670 | 5.500%, due 12/01/36 Pool # 907512 | 503,116 |
| 588,724 | 5.500%, due 12/01/36 Pool # 907635 | 621,386 |
| 524,467 | 6.000%, due 12/01/36 Pool # 903002 | |
| | | |
| | Freddie Mac - 1.82% | |
| 8,036 | 8.000%, due 06/01/30 Pool # C01005 | 9,237 |
| 121,324 | 6.500%, due 01/01/32 Pool # C62333 | 133,425 |
| 1,177,658 | 5.000%, due 07/01/33 Pool # A11325 | 1,230,984 |
| 58,779 | 6.000%, due 10/01/34 Pool # A28439 | 63,714 |
| 53,375 | 6.000%, due 10/01/34 Pool # A28598 | 57,856 |
| 102,934 | 5.000%, due 04/01/35 Pool # A32315 | 107,112 |
| 79,193 | 5.000%, due 04/01/35 Pool # A32316 | |
| | | |
| | |
| | Ginnie Mae - 0.12% | |
$ 9,808 | 8.000%, due 10/20/15 Pool # 002995 | $ 10,620 |
| 54,372 | 6.500%, due 02/20/29 Pool # 002714 | 60,292 |
| 35,776 | 6.500%, due 04/20/31 Pool # 003068 | |
| | | |
| | Total Mortgage Backed ( Cost $13,703,884 ) | 14,528,617 |
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 13.94% | |
| | Fannie Mae - 0.58% | |
| 500,000 | 5.250%, due 08/01/12 | |
| | Federal Farm Credit Bank - 1.25% | |
| 1,000,000 | 5.875%, due 10/03/16 | |
| | U.S. Treasury Bonds - 1.20% | |
| 860,000 | 6.625%, due 02/15/27 | |
| | U.S. Treasury Notes - 10.91% | |
| 30,000 | 4.500%, due 11/15/10 | 30,674 |
| 225,000 | 0.875%, due 02/28/11 | 225,887 |
| 320,000 | 4.875%, due 04/30/11 | 333,950 |
| 2,100,000 | 4.625%, due 12/31/11 | 2,234,039 |
| 375,000 | 1.375%, due 05/15/12 | 377,959 |
| 290,000 | 3.125%, due 08/31/13 | 303,707 |
| 1,150,000 | 4.000%, due 02/15/14 | 1,240,113 |
| 1,575,000 | 4.250%, due 08/15/14 | 1,715,273 |
| 2,000,000 | 4.250%, due 11/15/14 | 2,178,906 |
| 190,000 | 2.500%, due 03/31/15 | 190,950 |
| 60,000 | 4.250%, due 08/15/15 | 65,245 |
| 1,100,000 | 4.250%, due 11/15/17 | |
| | | |
| | Total U.S. Government and Agency Obligations ( Cost $12,389,935 ) | 12,868,868 |
| | |
| INVESTMENT COMPANIES - 0.99% | |
| 911,987 | SSgA Prime Money Market Fund | |
| | Total Investment Companies ( Cost $911,987 ) | 911,987 |
TOTAL INVESTMENTS - 99.49% ( Cost $86,417,430** ) | |
| NET OTHER ASSETS AND LIABILITIES - 0.51% | |
| TOTAL NET ASSETS - 100.00% | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Diversified Income Fund Portfolio of Investments (concluded)
| ** | Aggregate cost for Federal tax purposes was $86,602,723. |
| (C) | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." The securities have been determined to be liquid under guidelines established by the Board of Trustees. |
| (D) | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 0.82% of total net assets. |
| (E) | In Default. Issuer is bankrupt. |
| (M) | Stated interest rate is contingent upon sufficient collateral market value. If collateral market value falls below a stated level, the issuer will either initiate a clean-up call or increase the stated interest rate. |
| ADR | American Depositary Receipt. |
| PLC | Public Limited Company. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Equity Income Fund Portfolio of Investments
| | |
| COMMON STOCKS - 75.16% | |
| | Consumer Discretionary - 13.48% | |
| 40,000 | American Eagle Outfitters, Inc. | $ 672,400 |
| 17,000 | Coach Inc. | 709,750 |
| 15,000 | Kohl’s Corp. | 824,850 |
| 13,000 | Target Corp. | 739,310 |
| 15,100 | TJX Companies, Inc. | 699,734 |
| 24,000 | YUM! Brands Inc. | |
| | | |
| | Energy - 13.54% | |
| 25,000 | Noble Corp. | 987,250 |
| 40,000 | Petrohawk Energy Corp | 863,600 |
| 10,000 | Schlumberger, Ltd. | 714,200 |
| 26,000 | Southwestern Energy Co.* | 1,031,680 |
| 60,000 | Weatherford International, Ltd. * | |
| | | |
| | Financials - 14.29% | |
| 13,000 | Aflac Inc. | 662,480 |
| 21,000 | Bank of New York Mellon Corp./The | 911,610 |
| 26,000 | Capital One Financial Corp | 809,380 |
| 37,000 | Morgan Stanley | 1,118,140 |
| 21,000 | State Street Corp. | 913,500 |
| 16,000 | Wells Fargo & Co. | |
| | | |
| | Health Care - 10.82% | |
| 14,000 | Genzyme Corp.* | 745,360 |
| 24,000 | Gilead Sciences, Inc.* | 952,080 |
| 30,000 | Pfizer, Inc. | 501,600 |
| 17,000 | St. Jude Medical, Inc. * | 693,940 |
| 28,000 | UnitedHealth Group, Inc. | |
| | | |
| | |
| | Information Technology - 20.28% | |
| 21,500 | Adobe Systems Inc | $ 722,185 |
| 14,000 | Altera Corp. | 355,040 |
| 24,000 | BMC Software | 944,640 |
| 120,000 | Brocade Communications Systems, Inc. | 778,800 |
| 33,000 | EMC Corp./Massachusetts * | 627,330 |
| 2,000 | Google Inc.- Class A* | 1,050,880 |
| 25,000 | Qualcomm, Inc | 968,500 |
| 25,000 | Varian Semiconductor Equipment | 823,500 |
| 45,000 | Yahoo! Inc.* | |
| | | |
| | Industrials - 1.11% | |
| 8,000 | Jacobs Engineering Group Inc | |
| | Materials - 1.64% | |
| 7,500 | Freeport-McMoran Copper | |
| | Total Common Stocks ( Cost $25,053,608 ) | 26,000,944 |
| 9,441,595 | Repurchase Agreement - 29.11% US Bank issued 4/30/10 at 0.01%, due 5/3/10, collateralized by $10,269,638 in Fannie Mae MBS #E99430 due 9/1/18. Proceeds at maturity are $10,068,168 (Cost $10,068,160). | |
TOTAL INVESTMENTS - 104.27% ( Cost $35,121,768** ) | 36,069,104 |
| NET OTHER ASSETS AND LIABILITIES - 0.03% | 9,517 |
| Total Call Options Written - (4.30%) | |
| TOTAL NET ASSETS - 100.00% | |
*Non-income producing.
**Aggregate cost for Federal tax purposes was $35,121,768.
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Equity Income Fund Portfolio of Investments (concluded)
Contracts (100 shares per contract) | | | | |
| 215 | Adobe Systems Inc | July-10 | $35.00 | $ 27,950 |
| 80 | Aflac Inc. | May-10 | 49.00 | 22,240 |
| 50 | Aflac Inc. | May-10 | 50.00 | 10,500 |
| 140 | Altera Corp. | June-10 | 23.00 | 38,150 |
| 200 | American Eagle Outfitters, Inc. | May-10 | 17.50 | 6,500 |
| 130 | American Eagle Outfitters, Inc. | August-10 | 17.50 | 14,300 |
| 100 | Bank of New York Mellon Corp./The | June-10 | 29.00 | 27,300 |
| 160 | Bank of New York Mellon Corp./The | June-10 | 30.00 | 32,000 |
| 200 | BMC Software | August-10 | 40.00 | 45,500 |
| 300 | Brocade Communications Systems, Inc. | July-10 | 9.00 | 1,500 |
| 170 | Capital One Financial | September-10 | 43.00 | 77,350 |
| 170 | Coach Inc. | August-10 | 42.00 | 48,025 |
| 100 | EMC Corp./Massachusetts | July-10 | 18.00 | 15,200 |
| 140 | EMC Corp./Massachusetts | July-10 | 19.00 | 12,810 |
| 25 | Freeport-McMoran Copper | May-10 | 85.00 | 1,063 |
| 50 | Freeport-McMoran Copper | August-10 | 90.00 | 10,000 |
| 140 | Genzyme Corp. | June-10 | 55.00 | 25,200 |
| 170 | Gilead Sciences, Inc. | May-10 | 47.00 | 595 |
| 80 | Jacobs Engineering Group Inc | July-10 | 46.00 | 34,400 |
| 70 | Kohl’s Corp. | July-10 | 50.00 | 43,050 |
| 190 | Morgan Stanley | July-10 | 29.00 | 54,910 |
| 50 | Morgan Stanley | July-10 | 34.00 | 3,500 |
| 130 | Morgan Stanley | October-10 | 32.00 | 30,875 |
| 250 | Noble Corp. | September-10 | 44.00 | 47,500 |
| 400 | Petrohawk Energy Corp | June-10 | 22.50 | 42,000 |
| 230 | Qualcomm, Inc | July-10 | 40.00 | 30,130 |
| 50 | Schlumberger, Ltd. | May-10 | 65.00 | 34,875 |
| 50 | Schlumberger, Ltd. | August-10 | 70.00 | 31,875 |
| 160 | Southwestern Energy Co. | June-10 | 44.00 | 14,000 |
| 60 | Southwestern Energy Co. | June-10 | 49.00 | 1,200 |
| 170 | St. Jude Medical, Inc. | October-10 | 40.00 | 62,050 |
| 170 | State Street Corp. | May-10 | 47.00 | 2,975 |
| 40 | State Street Corp. | August-10 | 48.00 | 6,100 |
| 130 | Target Corp. | July-10 | 49.00 | 109,525 |
| 151 | TJX Companies, Inc. | July-10 | 40.00 | 102,680 |
| 100 | UnitedHealth Group, Inc. | June-10 | 34.00 | 2,900 |
| 180 | UnitedHealth Group, Inc. | September-10 | 35.00 | 16,920 |
| 250 | Varian Semiconductor Equipment | August-10 | 35.00 | 50,000 |
| 200 | Weatherford International, Ltd. | August-10 | 18.00 | 36,300 |
| 400 | Weatherford International, Ltd. | August-10 | 19.00 | 54,800 |
| 160 | Wells Fargo & Co. | July-10 | 30.00 | 64,000 |
| 450 | Yahoo! Inc. | July-10 | 17.00 | 33,975 |
| 180 | YUM! Brands Inc. | July-10 | 36.00 | 121,500 |
| 60 | YUM! Brands Inc. | October-10 | 37.00 | |
| | Total Call Options Written (Premiums Received $1,312,268) | | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Large Cap Value Fund Portfolio of Investments
| | |
| COMMON STOCKS - 98.98% | |
| | Consumer Discretionary - 8.36% | |
| 17,500 | AutoZone, Inc. * | $ 3,237,675 |
| 46,500 | Darden Restaurants, Inc. | 2,080,875 |
| 22,300 | ITT Educational Services, Inc. * | 2,255,199 |
| 80,000 | Omnicom Group, Inc. | 3,412,800 |
| 85,000 | Viacom, Inc. * | |
| | | |
| | Consumer Staples - 6.83% | |
| 50,000 | CVS Caremark Corp. | 1,846,500 |
| 27,000 | Diageo PLC, ADR | 1,839,780 |
| 28,000 | PepsiCo, Inc./NC | 1,826,160 |
| 35,000 | Philip Morris International, Inc. | 1,717,800 |
| 26,000 | Procter & Gamble Co./The | 1,616,160 |
| 48,000 | Wal-Mart Stores, Inc. | |
| | | |
| | Energy - 21.13% | |
| 25,000 | Anadarko Petroleum Corp. | 1,554,000 |
| 112,066 | Chevron Corp. | 9,126,655 |
| 81,000 | ConocoPhillips | 4,794,390 |
| 40,000 | Devon Energy Corp. | 2,693,200 |
| 101,000 | Noble Corp. * | 3,988,490 |
| 46,000 | Occidental Petroleum Corp. | 4,078,360 |
| 87,000 | Southwestern Energy Co. * | 3,452,160 |
| 212,000 | Weatherford International, Ltd. * | 3,839,320 |
| 77,000 | Williams Cos., Inc./The | |
| | | |
| | Financials - 24.08% | |
| 30,000 | Arch Capital Group, Ltd. * | 2,267,400 |
| 388,984 | Bank of America Corp. | 6,935,585 |
| 146,000 | Bank of New York Mellon Corp./The | 4,544,980 |
| 22,000 | Berkshire Hathaway, Inc. * | 1,694,000 |
| 13,000 | Goldman Sachs Group, Inc./The | 1,887,600 |
| 141,968 | JPMorgan Chase & Co. | 6,044,997 |
| 262,000 | Keycorp | 2,363,240 |
| 145,000 | Morgan Stanley | 4,381,900 |
| 33,500 | Travelers Cos., Inc./The | 1,699,790 |
| 77,000 | US Bancorp | 2,061,290 |
| 129,000 | Wells Fargo & Co. | 4,271,190 |
| 62,000 | Willis Group Holdings PLC | |
| | | |
| | Health Care - 11.33% | |
| 30,000 | Baxter International, Inc. | 1,416,600 |
| 67,000 | Johnson & Johnson | 4,308,100 |
| 90,000 | Merck & Co., Inc. | 3,153,600 |
| 362,040 | Pfizer, Inc. | 6,053,309 |
| 132,800 | UnitedHealth Group, Inc. | |
| | | |
| | |
| | Industrials - 11.18% | |
| 42,000 | Deere & Co. | $ 2,512,440 |
| 47,600 | EI du Pont de Nemours & Co. | 1,896,384 |
| 138,600 | General Electric Co. | 2,613,996 |
| 19,000 | Illinois Tool Works, Inc. | 970,900 |
| 43,000 | Lockheed Martin Corp. | 3,650,270 |
| 42,000 | Norfolk Southern Corp. | 2,491,860 |
| 23,000 | United Technologies Corp. | 1,723,850 |
| 82,000 | Waste Management, Inc. | |
| | | |
| | Information Technology - 7.11% | |
| 119,000 | Intel Corp. | 2,716,770 |
| 28,000 | International Business Machines Corp. | 3,612,000 |
| 84,900 | Maxim Integrated Products, Inc. | 1,648,758 |
| 81,000 | Oracle Corp. | 2,093,040 |
| 100,000 | Western Union Co./The | |
| | | |
| | Materials - 2.59% | |
| 12,000 | Air Products & Chemicals, Inc. | 921,360 |
| 23,023 | Freeport-McMoRan Copper & Gold, Inc. | 1,738,927 |
| 37,000 | Nucor Corp. | |
| | | |
| | Telecommunication Services - 4.09% | |
| 164,032 | AT&T, Inc. | 4,274,674 |
| 58,020 | Verizon Communications, Inc. | 1,676,198 |
| 40,000 | Vodafone Group PLC, ADR | |
| | | |
| | Utilities - 2.28% | |
| 87,500 | Exelon Corp. | |
| | Total Common Stocks ( Cost $153,313,174 ) | 165,589,545 |
| INVESTMENT COMPANY - 0.92% | |
| 1,541,477 | SSgA Prime Money Market Fund | |
| | Total Investment Company ( Cost $1,541,477 ) | 1,541,477 |
TOTAL INVESTMENTS - 99.90% ( Cost $154,854,651** ) | |
| NET OTHER ASSETS AND LIABILITIES - 0.10% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $155,341,417. |
| ADR | American Depositary Receipt. |
| PLC | Public Limited Company. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Large Cap Growth Fund Portfolio of Investments
| | |
| COMMON STOCKS - 97.05% | |
| | Consumer Discretionary - 8.99% | |
| 8,700 | Amazon.com, Inc. * | $ 1,192,422 |
| 9,500 | Kohl’s Corp. * | 522,405 |
| 26,800 | McDonald’s Corp. | 1,891,812 |
| 60,388 | Omnicom Group, Inc. | 2,576,152 |
| 12,200 | TJX Cos., Inc. | 565,348 |
| 53,500 | Visa, Inc., Class A | 4,827,305 |
| 65,500 | Yum! Brands, Inc. | |
| | | |
| | Consumer Staples - 9.91% | |
| 33,800 | Colgate-Palmolive Co. | 2,842,580 |
| 29,700 | Diageo PLC, ADR | 2,023,758 |
| 69,500 | PepsiCo, Inc./NC | 4,532,790 |
| 119,700 | Wal-Mart Stores, Inc. | |
| | | |
| | Energy - 7.58% | |
| 18,500 | Cameron International Corp. * | 730,010 |
| 17,600 | Noble Corp. * | 695,024 |
| 180,600 | Petrohawk Energy Corp. * | 3,899,154 |
| 24,400 | Schlumberger, Ltd. | 1,742,648 |
| 51,700 | Southwestern Energy Co. * | 2,051,456 |
| 165,200 | Weatherford International, Ltd. * | |
| | | |
| | Financials - 9.23% | |
| 231,312 | Axis Capital Holdings, Ltd. | 7,209,995 |
| 98,125 | Bank of New York Mellon Corp./The | 3,054,631 |
| 18,000 | IntercontinentalExchange, Inc. * | 2,099,340 |
| 41,209 | T Rowe Price Group, Inc. | |
| | | |
| | Health Care - 11.94% | |
| 26,800 | Allergan, Inc./United States | 1,706,892 |
| 63,500 | Celgene Corp. * | 3,933,825 |
| 38,393 | HMS Holdings Corp. * | 2,054,025 |
| 1,100 | Intuitive Surgical, Inc. * | 396,616 |
| 137,505 | Johnson & Johnson | 8,841,572 |
| 52,100 | St. Jude Medical, Inc. * | |
| | | |
| | Industrials - 8.11% | |
| 18,165 | 3M Co. | 1,617,226 |
| 84,400 | Aecom Technology Corp. * | 2,537,908 |
| 28,300 | Boeing Co./The | 2,049,769 |
| 11,600 | Deere & Co. | 693,912 |
| 52,700 | EnerNOC, Inc. * | 1,532,516 |
| 36,300 | Raytheon Co. | 2,116,290 |
| 69,000 | Waste Management, Inc. | |
| | | |
| | |
| | Information Technology - 37.87% | |
| | Communication Equipment - 8.24% | |
| 304,200 | Cisco Systems, Inc. * | $ 8,189,064 |
| 128,100 | QUALCOMM, Inc. | 4,962,594 |
| | Computers & Peripherals - 4.42% | |
| 27,050 | Apple, Inc. * | 7,063,296 |
| | Internet - 0.47% | |
| 45,400 | Yahoo!, Inc. * | 750,462 |
| | IT Services - 3.86% | |
| 47,784 | International Business Machines Corp. | 6,164,136 |
| | Semiconductors - 6.86% | |
| 296,300 | Intel Corp. | 6,764,529 |
| 35,600 | Novellus Systems, Inc. * | 932,720 |
| 98,699 | Varian Semiconductor Equipment Associates, Inc. * | 3,251,145 |
| | Software - 14.02% | |
| 43,005 | ArcSight, Inc. * | 977,503 |
| 55,100 | BMC Software, Inc. * | 2,168,736 |
| 14,872 | Google, Inc., Class A * | 7,814,344 |
| 208,900 | Microsoft Corp. | 6,379,806 |
| 114,000 | Oracle Corp. | 2,945,760 |
| 24,600 | Salesforce.com, Inc. * | |
| | | |
| | Materials - 3.42% | |
| 21,400 | Agnico-Eagle Mines, Ltd. | 1,351,624 |
| 68,600 | Ecolab, Inc. | 3,350,424 |
| 16,693 | Nucor Corp. | |
| | | |
| | Total Common Stocks ( Cost $129,968,845 ) | 154,947,570 |
| INVESTMENT COMPANY - 3.29% | |
| 5,258,077 | SSgA Prime Money Market Fund | |
| | Total Investment Company ( Cost $5,258,077 ) | 5,258,077 |
TOTAL INVESTMENTS - 100.34% ( Cost $135,226,922** ) | |
| NET OTHER ASSETS AND LIABILITIES - (0.34)% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $137,102,793. |
| ADR | American Depositary Receipt. |
| PLC | Public Limited Company. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Mid Cap Fund Portfolio of Investments
| | |
| COMMON STOCKS - 92.31% | |
| | Consumer Discretionary - 14.13% | |
| 9,090 | AutoZone, Inc. * | $ 1,681,741 |
| 30,847 | Bed Bath & Beyond, Inc. * | 1,417,728 |
| 51,929 | CarMax, Inc. * | 1,275,896 |
| 11,311 | ITT Educational Services, Inc. * | 1,143,881 |
| 30,421 | Morningstar, Inc. * | 1,430,091 |
| 35,515 | Omnicom Group, Inc. | 1,515,070 |
| 12,501 | Sears Holdings Corp. * | 1,511,996 |
| 38,942 | Yum! Brands, Inc. | |
| | | |
| | Consumer Staples - 3.56% | |
| 21,497 | Brown-Forman Corp., Class B | 1,250,696 |
| 42,383 | McCormick & Co., Inc./MD | |
| | | |
| | Energy - 7.23% | |
| 15,365 | Contango Oil & Gas Co. * | 843,538 |
| 23,915 | Ensco PLC, ADR | 1,128,310 |
| 34,865 | Noble Corp. * | 1,376,819 |
| 32,400 | Southwestern Energy Co. * | 1,285,632 |
| 72,483 | Weatherford International, Ltd. * | |
| | | |
| | Financials - 16.56% | |
| 20,025 | Arch Capital Group, Ltd. * | 1,513,490 |
| 73,320 | Brookfield Asset Management, Inc., Class A | 1,857,929 |
| 98,015 | Brookfield Properties Corp. | 1,566,280 |
| 66,275 | Brown & Brown, Inc. | 1,334,778 |
| 12,639 | IntercontinentalExchange, Inc. * | 1,474,087 |
| 59,599 | Leucadia National Corp. * | 1,508,451 |
| 4,048 | Markel Corp. * | 1,549,736 |
| 24,727 | RLI Corp. | 1,434,166 |
| 61,751 | SEI Investments Co. | |
| | | |
| | Health Care - 10.47% | |
| 15,310 | CR Bard, Inc. | 1,324,774 |
| 43,598 | DENTSPLY International, Inc. | 1,597,431 |
| 20,209 | IDEXX Laboratories, Inc. * | 1,336,623 |
| 20,686 | Laboratory Corp. of America Holdings * | 1,625,299 |
| 25,743 | Techne Corp. | 1,705,474 |
| 18,188 | Varian Medical Systems, Inc. * | |
| | | |
| | Industrials - 18.18% | |
| 42,413 | Aecom Technology Corp. * | 1,275,359 |
| 44,710 | Copart, Inc. * | 1,595,700 |
| 90,435 | Covanta Holding Corp. * | 1,580,804 |
| 37,000 | Expeditors International of Washington, Inc. | 1,507,380 |
| 16,612 | Fastenal Co. | 908,510 |
| 45,708 | IDEX Corp. | 1,535,789 |
| | |
| 29,560 | Jacobs Engineering Group, Inc. * | $ 1,425,383 |
| 55,915 | Knight Transportation, Inc. | 1,190,430 |
| 55,557 | Ritchie Bros Auctioneers, Inc. | 1,300,034 |
| 26,129 | Wabtec Corp./DE | 1,243,218 |
| 40,126 | Waste Management, Inc. | |
| | | |
| | Information Technology - 13.78% | |
| 32,919 | Adobe Systems, Inc. * | 1,105,749 |
| 34,705 | Altera Corp. | 880,119 |
| 30,925 | Amphenol Corp., Class A | 1,429,044 |
| 34,745 | BMC Software, Inc. * | 1,367,563 |
| 26,047 | Concur Technologies, Inc. * | 1,091,630 |
| 17,978 | Factset Research Systems, Inc. | 1,352,305 |
| 40,791 | FLIR Systems, Inc. * | 1,247,797 |
| 48,454 | Teradata Corp. * | 1,408,558 |
| 79,495 | Western Union Co./The | |
| | | |
| | Materials - 5.20% | |
| 34,465 | Ecolab, Inc. | 1,683,270 |
| 14,591 | Martin Marietta Materials, Inc. | 1,398,985 |
| 38,127 | Valspar Corp. | |
| | | |
| | Telecommunication Services - 1.77% | |
| 38,536 | Crown Castle International Corp. * | |
| | Utilities - 1.43% | |
| 27,150 | EQT Corp. | |
| | Total Common Stocks ( Cost $64,528,438 ) | 75,947,423 |
| | |
| CERTIFICATE OF DEPOSIT - 1.50% | |
| $1,230,806 | State Street Eurodollar, 0.010%, due 05/03/10 | |
| | Total Certificate of Deposit ( Cost $1,230,806 ) | 1,230,806 |
| | |
| INVESTMENT COMPANIES - 6.62% | |
| 14,584 | iShares COMEX Gold Trust ETF * | 1,683,285 |
| 3,761,719 | SSgA Prime Money Market Fund | |
| | Total Investment Companies ( Cost $5,218,833 ) | 5,445,004 |
TOTAL INVESTMENTS - 100.43% ( Cost $70,978,077** ) | |
| NET OTHER ASSETS AND LIABILITIES - (0.43)% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $70,984,396. |
| ADR | American Depository Receipt. |
| ETF | Exchange Traded Funds. |
| PLC | Public Limited Company. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Small Cap Fund Portfolio of Investments
| | |
| COMMON STOCKS - 96.92% | |
| | Consumer Discretionary - 17.79% | |
| 22,700 | Arbitron, Inc. | $ 699,387 |
| 3,900 | Bally Technologies, Inc. * | 179,868 |
| 30,800 | Cato Corp./The, Class A | 731,500 |
| 10,700 | CEC Entertainment, Inc. * | 417,835 |
| 10,400 | Choice Hotels International, Inc. | 377,624 |
| 15,900 | Dress Barn, Inc./The * | 440,112 |
| 20,100 | Helen of Troy, Ltd. * | 542,901 |
| 11,400 | Hibbett Sports, Inc. * | 313,500 |
| 2,700 | International Speedway Corp. | 82,512 |
| 11,600 | Matthews International Corp., Class A | 406,000 |
| 37,600 | Sonic Corp. * | 440,296 |
| 48,400 | Stage Stores, Inc. | 738,100 |
| 7,100 | Tempur-Pedic International, Inc. * | 239,270 |
| 3,500 | Unifirst Corp./MA | |
| | | |
| | Consumer Staples - 5.07% | |
| 11,400 | Casey’s General Stores, Inc. | 440,382 |
| 16,500 | Herbalife, Ltd. | 796,125 |
| 17,800 | Lance, Inc. | |
| | | |
| | Energy - 4.74% | |
| 17,400 | Penn Virginia Corp. | 443,874 |
| 5,900 | SEACOR Holdings, Inc. * | 496,603 |
| 5,700 | St. Mary Land & Exploration Co. | 229,368 |
| 4,100 | Whiting Petroleum Corp. * | |
| | | |
| | Financials - 23.16% | |
| 918 | Alleghany Corp. * | 272,793 |
| 9,900 | American Campus Communities Inc., REIT | 278,883 |
| 15,400 | AMERISAFE, Inc. * | 263,340 |
| 38,400 | Ares Capital Corp. | 609,024 |
| 11,400 | Assured Guaranty, Ltd. | 245,670 |
| 2,100 | Credit Acceptance Corp. * | 94,710 |
| 26,100 | Delphi Financial Group, Inc., Class A | 717,750 |
| 26,084 | DiamondRock Hospitality Co., REIT * | 286,663 |
| 28,800 | Education Realty Trust, Inc., REIT | 203,616 |
| 40,990 | First Busey Corp. | 207,000 |
| 34,700 | First Midwest Bancorp, Inc./IL | 527,440 |
| 20,520 | International Bancshares Corp. | 495,968 |
| 6,500 | Mack-Cali Realty Corp., REIT | 223,340 |
| 16,600 | MB Financial, Inc. | 406,700 |
| 17,600 | NewAlliance Bancshares, Inc. | 229,328 |
| 21,600 | Northwest Bancshares, Inc./MD | 269,784 |
| 13,000 | Platinum Underwriters Holdings, Ltd. | 483,730 |
| 6,000 | Realty Income Corp., REIT | 196,740 |
| | |
| 8,800 | Reinsurance Group of America, Inc. | $ 454,344 |
| 9,089 | Validus Holdings, Ltd. | 232,406 |
| 27,800 | Webster Financial Corp. | 576,016 |
| 4,300 | Westamerica Bancorporation | |
| | | |
| | Health Care - 6.34% | |
| 17,200 | Amsurg Corp. * | 356,384 |
| 13,700 | Charles River Laboratories International, Inc. * | 458,676 |
| 7,400 | Corvel Corp. * | 246,420 |
| 14,600 | ICON PLC, ADR * | 425,882 |
| 12,500 | ICU Medical, Inc. * | 445,125 |
| 8,400 | Universal American Corp./NY * | |
| | | |
| | Industrials - 21.35% | |
| 50,600 | ACCO Brands Corp. * | 461,978 |
| 8,000 | Acuity Brands, Inc. | 361,680 |
| 26,800 | Albany International Corp., Class A | 682,596 |
| 32,800 | Belden, Inc. | 900,688 |
| 26,700 | Carlisle Cos., Inc. | 1,007,391 |
| 8,000 | ESCO Technologies, Inc. | 246,800 |
| 15,200 | GATX Corp. | 496,128 |
| 13,900 | Genesee & Wyoming, Inc., Class A * | 543,490 |
| 11,900 | Kirby Corp. * | 500,752 |
| 18,700 | Mueller Industries, Inc. | 554,455 |
| 15,400 | Standard Parking Corp. * | 260,106 |
| 8,600 | Sterling Construction Co., Inc. * | 150,500 |
| 12,600 | United Stationers, Inc. * | |
| | | |
| | Information Technology - 8.66% | |
| 5,400 | Coherent, Inc. * | 202,878 |
| 15,800 | Diebold, Inc. | 495,330 |
| 21,727 | Electronics for Imaging, Inc. * | 279,192 |
| 9,100 | MAXIMUS, Inc. | 563,381 |
| 9,000 | MTS Systems Corp. | 268,830 |
| 29,300 | NAM TAI Electronics, Inc. * | 147,086 |
| 22,000 | Websense, Inc. * | 500,940 |
| 12,300 | Zebra Technologies Corp., Class A * | |
| | | |
| | Materials - 4.47% | |
| 10,000 | Aptargroup, Inc. | 430,400 |
| 7,800 | Deltic Timber Corp. | 410,436 |
| 33,100 | Zep, Inc. | |
| | | |
| | Utilities - 5.34% | |
| 11,600 | Atmos Energy Corp. | 343,128 |
| 6,450 | New Jersey Resources Corp. | 243,358 |
| 14,900 | Unisource Energy Corp. | 496,468 |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Small Cap Fund Portfolio of Investments (concluded)
| | |
COMMON STOCKS (continued) | |
| | Utilities (continued) | |
| 17,000 | Westar Energy, Inc. | $ 402,730 |
| 7,000 | WGL Holdings, Inc. | |
| | | |
| | Total Common Stocks ( Cost $24,874,102 ) | 31,498,594 |
| INVESTMENT COMPANY - 3.20% | |
| 1,039,302 | SSgA Prime Money Market Fund | |
| | Total Investment Company ( Cost $1,039,302 ) | 1,039,302 |
TOTAL INVESTMENTS - 100.12% ( Cost $25,913,404** ) | |
| NET OTHER ASSETS AND LIABILITIES - (0.12)% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $26,439,944. |
| ADR | American Depository Receipt. |
| PLC | Public Limited Company. |
| REIT | Real Estate Investment Trust. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
International Stock Fund Portfolio of Investments
| | |
| COMMON STOCKS - 96.12% | |
| | Australia - 1.00% | |
| 26,314 | ABC Learning Centres, Ltd. (L)(T) * | $ – |
| 52,800 | QBE Insurance Group, Ltd. (L) | |
| | Belgium - 2.04% | |
| 43,433 | Anheuser-Busch InBev N.V. (L) | |
| | Brazil - 2.93% | |
| 82,100 | Banco do Brasil S.A. | 1,425,161 |
| 164,100 | Cielo S.A. | |
| | | |
| | Canada - 2.91% | |
| 11,000 | Potash Corp. of Saskatchewan, Inc. | 1,220,736 |
| 31,300 | Rogers Communications, Inc. | 1,120,709 |
| 17,900 | TELUS Corp. | |
| | | |
| | China - 0.90% | |
| 1,273,800 | Industrial & Commercial Bank of China (L) | |
| | Czech Republic - 0.76% | |
| 16,400 | CEZ AS | 788,272 |
| 12,600 | DSV A/S (L) | 224,115 |
| 12,425 | Novo Nordisk A/S, B Shares (L) | |
| | | |
| | France - 7.77% | |
| 28,598 | BNP Paribas (L) | 1,963,580 |
| 15,200 | Cap Gemini S.A. (L) | 770,402 |
| 42,049 | Sanofi-Aventis S.A. (L) | 2,876,319 |
| 30,631 | Total S.A. (L) | 1,658,119 |
| 23,000 | Valeo S.A. (L)* | |
| | | |
| | Germany - 4.18% | |
| 26,700 | Bayerische Motoren Werke AG (L) | 1,306,948 |
| 21,500 | SAP AG (L) | 1,034,727 |
| 20,074 | Siemens AG (L) | |
| | | |
| | Hong Kong - 2.90% | |
| 289,107 | Esprit Holdings, Ltd. (L) | 2,070,750 |
| 200,900 | Kerry Properties, Ltd. (L) | |
| | | |
| | India - 0.74% | |
| 554,700 | Idea Cellular, Ltd. (L)* | |
| | Ireland - 1.67% | |
| 60,640 | CRH PLC (L) | |
| | Italy - 1.39% | |
| 39,700 | Atlantia SpA (L) | 846,405 |
| 32,830 | Prysmian SpA (L) | |
| | | |
| | |
| | Japan - 20.31% | |
| 17,500 | Benesse Holdings, Inc. | $ 803,979 |
| 47,400 | Canon, Inc. (L) | 2,156,813 |
| 33,840 | Daito Trust Construction Co., Ltd. (L) | 1,805,675 |
| 40,700 | Honda Motor Co., Ltd. (L) | 1,370,667 |
| 61,000 | Hoya Corp. (L) | 1,672,273 |
| 111 | Inpex Corp. (L) | 782,040 |
| 304 | KDDI Corp. | 1,469,199 |
| 4,300 | Keyence Corp. (L) | 1,022,093 |
| 108,200 | Kubota Corp. (L) | 948,397 |
| 64,600 | Mitsubishi Corp. (L) | 1,527,819 |
| 72,800 | Mitsubishi Estate Co., Ltd. (L) | 1,311,544 |
| 157,100 | Nomura Holdings, Inc. (L) | 1,080,082 |
| 47,200 | Sumitomo Mitsui Financial Group, Inc. (L) | 1,551,991 |
| 5,381 | Yahoo! Japan Corp. (L) | 2,049,464 |
| 18,640 | Yamada Denki Co., Ltd. (L) | |
| | | |
| | Korea - 0.80% | |
| 5,000 | Hyundai Mobis (L) | |
| | Mexico - 0.73% | |
| 36,100 | Grupo Televisa S.A., ADR | |
| | Netherlands - 1.87% | |
| 19,700 | Heineken N.V. (L) | 913,513 |
| 33,238 | TNT N.V. | |
| | | |
| | Norway - 1.32% | |
| 81,800 | Aker Solutions ASA (L) | |
| | Russia - 0.75% | |
| 13,600 | Lukoil OAO, ADR (L) | |
| | Singapore - 0.90% | |
| 421,500 | Singapore Telecommunications, Ltd. (L) | |
| | South Korea - 0.80% | |
| 2,150 | Samsung Electronics Co., Ltd., GDR (C) | |
| | Spain - 2.15% | |
| 37,000 | Amadeus IT Holding S.A. * | 590,565 |
| 130,004 | Banco Santander S.A. (L) | |
| | | |
| | Switzerland - 8.74% | |
| 39,924 | Credit Suisse Group AG (L) | 1,824,697 |
| 12,900 | Julius Baer Group, Ltd. (L) | 445,102 |
| 32,770 | Nestle S.A. (L) | 1,597,839 |
| 48,785 | Novartis AG (L) | 2,486,759 |
| 8,347 | Roche Holding AG | 1,318,131 |
| 6,127 | Zurich Financial Services AG (L) | |
| | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
International Stock Fund Portfolio of Investments (concluded)
| | |
COMMON STOCKS (continued) | |
| | Turkey - 0.89% | |
| 193,400 | Turkiye Garanti Bankasi AS, ADR | |
| | United Kingdom - 26.47% | |
| 273,015 | BAE Systems PLC (L) | 1,435,737 |
| 295,700 | Barclays PLC (L) | 1,514,679 |
| 105,751 | BG Group PLC (L) | 1,776,326 |
| 45,600 | BHP Billiton PLC (L) | 1,401,583 |
| 145,400 | British Airways PLC (L)* | 500,878 |
| 29,626 | British American Tobacco PLC | 931,488 |
| 99,200 | GlaxoSmithKline PLC | 1,838,907 |
| 123,883 | HSBC Holdings PLC (L) | 1,262,621 |
| 239,498 | Informa PLC | 1,454,714 |
| 200,106 | International Power PLC (L) | 1,011,484 |
| 1,571,216 | Lloyds Banking Group PLC (L)* | 1,571,971 |
| 152,207 | Prudential PLC | 1,350,181 |
| 45,800 | Royal Dutch Shell PLC (L) | 1,433,657 |
| 59,400 | Standard Chartered PLC (L) | 1,584,069 |
| 206,695 | Tesco PLC (L) | 1,375,585 |
| 75,300 | Unilever PLC (L) | 2,256,738 |
| 732,164 | Vodafone Group PLC | 1,629,024 |
| 116,963 | WPP PLC (L) | 1,244,082 |
| 108,300 | Xstrata PLC (L) | |
| | | |
| | Total Common Stocks ( Cost $87,590,770 ) | 99,374,557 |
| INVESTMENT COMPANIES - 2.75% | |
| | United States - 2.75% | |
| 2,841,502 | SSgA Prime Money Market Fund | |
| | Total Investment Companies ( Cost $2,841,502 ) | 2,841,502 |
TOTAL INVESTMENTS - 98.87% ( Cost $90,432,272** ) | |
| NET OTHER ASSETS AND LIABILITIES - 1.13% | |
| TOTAL NET ASSETS - 100.00% | |
| * | Non-income producing. |
| ** | Aggregate cost for Federal tax purposes was $92,094,097. |
| (C) | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "qualified institutional investors." The securities have been determined to be liquid under guidelines established by the Board of Trustees. |
| (L) | Security valued at fair value using methods determined in good faith by or at the discretion of the Board of Trustees (see note 2). |
| (T) | Illiquid security. |
| ADR | American Depositary Receipt. |
| GDR | Global Depositary Receipt. |
| PLC | Public Limited Company. |
| OTHER INFORMATION: |
| Industry Concentration | |
| | |
| Commercial Banks | 14.3% |
| Pharmaceuticals | 9.2% |
| Oil, Gas & Consumable Fuels | 6.2% |
| Automobiles | 4.1% |
| Wireless Telecommunication Services | 4.0% |
| Real Estate Management & Development | 3.9% |
| Net Other Assets & Liabilities | 3.9% |
| Food Products | 3.7% |
| Insurance | 3.6% |
| Distributors | 3.5% |
| Electronic Equipment & Instruments | 3.4% |
| Media | 3.3% |
| Commercial Services & Supplies | 3.2% |
| Metals & Mining | 3.1% |
| Diversified Telecommunication Services | 3.1% |
| Beverages | 2.9% |
| Capital Markets | 2.8% |
| Electrical Equipment | 2.5% |
| Office Electronics | 2.1% |
| IT Services | 2.0% |
| Electric Utilities | 1.8% |
| Construction Materials | 1.7% |
| Software | 1.6% |
| Household Durables | 1.4% |
| Aerospace & Defense | 1.4% |
| Food & Staples Retailing | 1.3% |
| Construction & Engineering | 1.3% |
| Chemicals | 1.2% |
| Air Freight & Logistics | 1.0% |
| Machinery | 0.9% |
| Tobacco | 0.9% |
| Industrial Conglomerates | 0.5% |
| Transportation Infrastructure | |
| | 100.0% |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Assets and Liabilities as of April 30, 2010 (unaudited)
| | Conservative Allocation Fund | | Aggressive Allocation Fund |
| Assets: | | | |
| Investments: | | | |
| Investments at cost | | | |
| Unaffiliated issuers | $13,361,307 | $ 28,925,332 | $ 10,546,177 |
Affiliated issuers4 | 28,090,603 | 69,039,976 | 23,213,619 |
| Net unrealized appreciation | | | |
| Unaffiliated issuers | 684,342 | 2,238,374 | 636,456 |
Affiliated issuers4 | | | |
| Total investments at value | | | |
| Receivables: | | | |
| Fund shares sold | 30,653 | 142,677 | 121,624 |
| Dividends and interest | 15,155 | 22,509 | 2,801 |
| Due from Adviser | 2,650 | – | 4,008 |
| Other assets | | | |
| Total assets | | | |
| Liabilities: | | | |
| Payables: | | | |
| Fund shares repurchased | 6,765 | 102,218 | 8,011 |
| Advisory agreement fees | 6,935 | 16,765 | 5,848 |
| Service agreement fees | – | 8,889 | – |
| Audit fees | 9,818 | 9,818 | 9,818 |
| Distribution fees – Class B | 4,461 | 14,256 | 5,361 |
| Distribution fees – Class C | 2,480 | 2,312 | 343 |
| Shareholder servicing fees | 8,669 | 20,957 | 7,310 |
| Trustee fees | 1,500 | 2,250 | 1,500 |
| Accrued expenses and other payables | | | |
| Total liabilities | | | |
| Net Assets | | | |
| Net Assets consist of: | | | |
| Paid-in capital | $ 45,255,851 | $115,510,426 | $ 41,058,318 |
| Accumulated undistributed net investment income | 3,510 | 307,392 | 98,600 |
| Accumulated net realized loss on investments sold and foreign currency related transactions | (3,802,396) | (17,868,428) | (7,311,080) |
| Net unrealized appreciation of investments (including appreciation (depreciation) of foreign currency related transactions) | | | |
| Net Assets | | | |
| Class A Shares: | | | |
| Net Assets | $ 31,324,221 | $ 75,375,540 | $ 26,530,343 |
| Shares of beneficial interest outstanding | 3,217,184 | 8,047,480 | 2,981,511 |
Net Asset Value and redemption price per share1 | $ 9.74 | $ 9.37 | $ 8.90 |
Sales charge of offering price2 | 0.59 | 0.57 | 0.54 |
| Maximum offering price per share | | | |
| Class B Shares: | | | |
| Net Assets | $ 7,394,217 | $ 23,347,880 | $ 8,717,536 |
| Shares of beneficial interest outstanding | 759,008 | 2,498,625 | 984,667 |
Net Asset Value and redemption price per share1 | | | |
Class C Shares3: | | | |
| Net Assets | $ 4,259,000 | $ 3,774,788 | $ 559,431 |
| Shares of beneficial interest outstanding | 436,944 | 403,619 | 63,136 |
Net Asset Value and redemption price per share1 | | | |
| 1 | If applicable, redemption price per share may be reduced by a contingent deferred sales charge and/or redemption fee. |
| 2 | Sales charge of offering price is 5.75% for the Conservative Allocation, Moderate Allocation, Aggressive Allocation Funds. |
| 3 | Class C shares commenced investment operations on February 29, 2008. |
| 4 | See Note 11 for information on affiliated issuers. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Assets and Liabilities as of April 30, 2010 (unaudited)
| | | | |
| Assets: | | | |
| Investments: | | | |
| Investments at cost | | | |
| Unaffiliated issuers | $ 15,032,125 | $ 206,079,558 | $ 112,191,545 |
| Net unrealized appreciation | | | |
| Unaffiliated issuers | | | |
| Total investments at value | 15,032,125 | 212,865,150 | 120,796,433 |
| Cash: | – | – | 512,069 |
| Receivables: | | | |
| Investments sold | – | – | 361,590 |
| Fund shares sold | 11,568 | 42,556 | 2,805 |
| Dividends and interest | – | 1,641,157 | 2,358,680 |
| Due from Adviser | | | |
| Total assets | | | |
| Liabilities: | | | |
| Bank overdrafts | – | 5,642 | – |
| Payables: | | | |
| Investments purchased | – | – | 4,556,097 |
| Fund shares repurchased | 7,193 | 102,290 | 48,123 |
| Advisory agreement fees | – | 87,619 | 53,481 |
| Service agreement fees | – | 14,362 | 7,379 |
| Audit fees | 9,000 | 9,424 | 9,819 |
| Distribution fees – Class B | 1,447 | 4,931 | 2,778 |
| Shareholder servicing fees | - | 10,544 | 6,069 |
| Trustee fees | 1,500 | 2,500 | 2,250 |
| Accrued expenses and other payables | | | |
| Total liabilities | | | |
| Net Assets | | | |
| Net Assets consist of: | | | |
| Paid-in capital | $ 15,031,212 | $208,887,763 | $118,679,177 |
| Accumulated undistributed net investment income (loss) | – | 46,535 | 39,671 |
| Accumulated net realized loss on investments sold and foreign currency related transactions | – | (1,409,783) | (7,982,442) |
| Net unrealized appreciation of investments (including appreciation (depreciation) of foreign currency related transactions) | | | |
| Net Assets | | | |
| Class A Shares: | | | |
| Net Assets | $ 12,701,436 | $ 43,349,791 | $ 25,171,634 |
| Shares of beneficial interest outstanding | 12,703,805 | 4,280,383 | 3,639,407 |
Net Asset Value and redemption price per share1 | $1.00 | $10.13 | $6.92 |
Sales charge of offering price2 | – | 0.48 | 0.33 |
| Maximum offering price per share | | | |
| Class B Shares: | | | |
| Net Assets | $ 2,329,776 | $ 8,046,081 | $ 4,487,562 |
| Shares of beneficial interest outstanding | 2,332,517 | 794,180 | 640,744 |
Net Asset Value and redemption price per share1 | | | |
Class Y Shares3: | | | |
| Net Assets | | $ 162,914,235 | $ 89,682,098 |
| Shares of beneficial interest outstanding | | 16,093,948 | 12,989,331 |
Net Asset Value and redemption price per share1 | | | |
| 1 | If applicable, redemption price per share may be reduced by a contingent deferred sales charge and/or redemption fee. |
| 2 | Sales charge of offering price is 4.50% for the Bond and High Income Funds. |
| 3 | Class Y shares are not available for the Cash Reserves Fund. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Assets and Liabilities as of April 30, 2010 (unaudited)
| | | | |
| Assets: | | | |
| Investments: | | | |
| Investments at cost | | | |
| Unaffiliated issuers | $ 86,417,430 | $ 35,121,768 | $154,854,651 |
| Net unrealized appreciation | | | |
| Unaffiliated issuers | | | |
| Total investments at value | 91,818,594 | 36,069,104 | 167,131,022 |
| Foreign currency (cost of $251,400) (Note 2) | – | – | – |
| Receivables: | | | |
| Investments sold | 2,771,345 | – | 2,483,004 |
| Fund shares sold | 7,605 | 5,659 | 14,294 |
| Dividends and interest | 639,734 | 10,358 | 207,618 |
| Due from Adviser | – | – | – |
| Other assets | | | |
| Total assets | 95,242,071 | 36,089,545 | 169,835,938 |
| Liabilities: | | | |
| Bank overdrafts | 3,943 | – | – |
| Payables: | | | |
| Investments purchased | 2,736,490 | – | 2,277,296 |
| Fund shares repurchased | 110,712 | – | 106,350 |
| Advisory agreement fees | 49,470 | – | 76,701 |
| Service agreement fees | 3,798 | – | 38,530 |
| Audit fees | 9,424 | 9,424 | 9,424 |
| Distribution fees – Class B | 11,170 | – | 6,004 |
| Shareholder servicing fees | 22,487 | – | 14,177 |
| Trustee fees | 2,000 | 1,500 | 2,250 |
| Options written, at value (premium received $1,312,268) (Note 6) | – | 1,486,323 | – |
| Accrued expenses and other payables | | | |
| Total liabilities | | | |
| Net Assets | | | |
| Net Assets consist of: | | | |
| Paid-in capital | $102,971,955 | $ 33,140,661 | $182,810,538 |
| Accumulated undistributed net investment income (loss) | 31,504 | (91,756) | 539,385 |
| Accumulated net realized loss on investments sold, options and foreign currency related transactions | (16,115,869) | 770,112 | (28,325,006) |
| Net unrealized appreciation of investments (including appreciation (depreciation) of options and foreign currency related transactions) | | | |
| Net Assets | | | |
| Class A Shares: | | | |
| Net Assets | $ 74,185,456 | $ 2,077,959 | $ 58,249,168 |
| Shares of beneficial interest outstanding | 6,858,961 | 198,468 | 4,949,028 |
Net Asset Value and redemption price per share1 | $ 10.82 | $ 10.47 | $ 11.77 |
Sales charge of offering price2 | 0.66 | 0.64 | 0.72 |
| Maximum offering price per share | | | |
Class B Shares3: | | | |
| Net Assets | $ 18,103,298 | | $ 9,607,780 |
| Shares of beneficial interest outstanding | 1,665,560 | | 827,777 |
Net Asset Value and redemption price per share1 | | | |
Class Y Shares4: | | | |
| Net Assets | | $ 32,514,339 | $ 99,444,340 |
| Shares of beneficial interest outstanding | | 3,101,386 | 8,449,719 |
Net Asset Value and redemption price per share1 | | | |
| 1 | If applicable, redemption price per share may be reduced by a contingent deferred sales charge and/or redemption fee. |
| 2 | Sales charge of offering price is 5.75% for the Diversified Income, Large Cap Value, Large Cap Growth, Mid Cap, Small Cap, and International Stock Funds. |
| 3 | Class B shares are not available for the Equity Income Fund. |
| 4 | Class Y shares are not available for the Diversified Income Fund. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Assets and Liabilities as of April 30, 2010 (unaudited)
| | | |
| | | | |
| | | | |
| | | | |
| $135,226,922 | $ 70,978,077 | $ 25,913,404 | $ 90,432,272 |
| | | | |
| | | |
| 160,205,647 | 82,623,233 | 32,537,896 | 102,216,059 |
| – | – | – | 252,608 |
| | | | |
| 2,263,139 | – | 71,451 | 3,021,447 |
| 10,613 | 5,859 | 2,906 | 8,475 |
| 61,904 | 18,991 | 14,901 | 485,279 |
| – | – | 4,712 | – |
| | | |
| 162,541,303 | 82,648,135 | 32,631,866 | 106,154,488 |
| | | | |
| – | – | – | – |
| | | | |
| 2,558,691 | 245,354 | 89,884 | 2,618,873 |
| 175,966 | 29,357 | – | 14,290 |
| 99,135 | 50,139 | 26,427 | 92,010 |
| 14,762 | 15,172 | – | 14,220 |
| 9,424 | 9,819 | 9,819 | 9,819 |
| 6,149 | 6,286 | 147 | 3,063 |
| 12,542 | 11,174 | 560 | 5,953 |
| 2,250 | 1,750 | 1,500 | 2,250 |
| – | – | – | – |
| | | |
| | | |
| | | |
| | | | |
| $163,887,166 | $ 89,860,645 | $ 27,941,868 | $116,236,813 |
| 155,218 | (155,838) | 6,479 | 171,585 |
| (29,362,643) | (19,078,608) | (2,073,668) | (24,798,118) |
| | | |
| | | |
| | | | |
$ 50,417,425 | $ 44,686,578 | $ 2,564,567 | $ 23,230,352 |
| 3,391,272 | 7,670,253 | 250,661 | 2,324,013 |
$ 14.87 | $ 5.83 | $ 10.23 | $ 10.00 |
| 0.91 | 0.37 | 0.62 | 0.61 |
| | | |
| | | | |
$ 9,909,520 | $ 10,244,479 | $ 237,711 | $ 4,821,947 |
| 721,193 | 1,899,042 | 23,496 | 489,289 |
| | | |
| | | | |
$ 99,331,521 | $ 27,340,312 | $ 29,696,893 | $ 75,337,499 |
| 6,645,163 | 4,646,416 | 2,912,235 | 7,537,970 |
| | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Operations for the Period Ended April 30, 2010 (unaudited)
| | Conservative Allocation Fund | | Aggressive Allocation Fund |
| Investment Income: | | | |
| Interest | $ 127 | $ 300 | $ 108 |
| Dividends | | | |
| Unaffiliated issuers | 282,714 | 502,256 | 87,081 |
Affiliated issuers1 | | | |
| Total investment income | 748,789 | 1,451,324 | 380,023 |
| Expenses: | | | |
| Advisory agreement fees | 39,550 | 94,235 | 32,574 |
| Service agreement fees | 36,619 | 103,976 | 27,899 |
| Audit fees | 9,818 | 9,818 | 9,818 |
| Trustees’ fees | 3,000 | 4,000 | 3,000 |
| Distribution fees – Class B | 25,243 | 80,303 | 30,484 |
Distribution fees – Class C2 | 13,878 | 12,499 | 1,962 |
| Shareholder servicing fees – Class A | 36,397 | 86,860 | 29,902 |
| Shareholder servicing fees – Class B | 8,414 | 26,768 | 10,161 |
Shareholder servicing fees – Class C2 | | | |
| Total expenses | | | |
| Net Investment Income | 571,244 | 1,028,699 | 233,569 |
| Net Realized and Unrealized Gain (Loss) on Investments | | | |
| Net realized gain (loss) on investments (including net realized gain (loss) on foreign currency related transactions) | | | |
| Unaffiliated issuers | 383,559 | (746,887) | (585,186) |
Affiliated issuers1 | (427,125) | (3,457,645) | (1,772,925) |
| Capital gain distributions received from underlying funds | | | |
| Unaffiliated issuers | – | – | 2,081 |
| Net change in unrealized appreciation on investments (including a net unrealized appreciation on foreign currency related transactions) | | | |
| Net Realized and Unrealized Gain on Investments | | | |
| Net Increase in Net Assets from Operations | | | |
| 1 | See Note 11 for information on affiliated issuers. |
| 2 | Class C shares commenced investment operations on February 29, 2008. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Operations for the Period Ended April 30, 2010 (unaudited)
| | | | |
| Investment Income: | | | |
| Interest | $ 9,886 | $ 3,487,087 | $ 4,906,197 |
| Expenses: | | | |
| Advisory agreement fees | 31,757 | 510,728 | 313,565 |
| Service agreement fees | 79 | 138,794 | 100,205 |
| Audit fees | 9,000 | 9,424 | 9,819 |
| Trustees’ fees | 3,000 | 5,000 | 4,000 |
| Distribution fees – Class B | 9,639 | 31,544 | 16,845 |
| Shareholder servicing fees – Class A | – | 54,525 | 31,171 |
| Shareholder servicing fees – Class B | | | |
| Total expenses before reimbursement/waiver | 53,475 | 760,530 | 481,220 |
Less reimbursement/waiver1 | | | |
| Total expenses net of reimbursement/waiver | | | |
| Net Investment Income | – | 2,726,557 | 4,424,977 |
| Net Realized and Unrealized Gain (Loss) on Investments | | | |
| Net realized gain (loss) on investments (including net realized gain (loss) on foreign currency related transactions) | | | |
| Unaffiliated issuers | – | (378) | 2,004,020 |
| Net change in unrealized appreciation on investments (including a net unrealized appreciation (depreciation) on foreign currency related transactions) | | | |
| Net Realized and Unrealized Gain on Investments | | | |
| Net Increase in Net Assets from Operations | | | |
| 1 | Waiver includes advisory agreement fees of $31,873, service agreement fees of $2,077, and distribution fees of $9,639 for the Cash Reserves Fund. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Operations for the Period Ended April 30, 2010 (unaudited)
| | | | |
| Investment Income: | | | |
| Interest | $ 1,179,450 | $ 517 | $ 1,072 |
| Dividends | | | |
| Unaffiliated issuers | 766,522 | 49,683 | 1,616,644 |
| Less: Foreign taxes withheld | | | |
| Total investment income | 1,942,719 | 50,200 | 1,617,716 |
| Expenses: | | | |
| Advisory agreement fees | 295,874 | 119,646 | 435,864 |
| Service agreement fees | 77,864 | – | 271,369 |
| Audit fees | 9,424 | 9,424 | 9,424 |
| Trustees’ fees | 3,750 | 3,000 | 4,500 |
| Distribution fees – Class B | 66,995 | – | 35,827 |
| Shareholder servicing fees – Class A | 91,466 | 1,196 | 71,338 |
| Shareholder servicing fees – Class B | 22,332 | – | 11,942 |
| Other expenses | | | |
| Total expenses net of reimbursement | | | |
| Net Investment Income (Loss) | 1,375,014 | (91,756) | 777,452 |
| Net Realized and Unrealized Gain (Loss) on Investments | | | |
| Net realized gain (loss) on investments (including net realized gain (loss) on options and foreign currency related transactions) | | | |
| Options | – | 289,568 | – |
| Unaffiliated issuers | 2,136,137 | 480,544 | 1,650,962 |
| Net change in unrealized appreciation on investments (including a net unrealized appreciation (depreciation) on options and foreign currency related transactions) | | | |
| Options | – | (174,055) | – |
| Unaffiliated issuers | | | |
| Net Realized and Unrealized Gain on Investments and Options Transactions | | | |
| Net Increase in Net Assets from Operations | | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Operations for the Period Ended April 30, 2010 (unaudited)
| | | |
| | | | |
$ 2,212 | $ 1,038 | $ 367 | $ (1,332) |
| | | | |
| 997,511 | 243,978 | 226,368 | 1,812,875 |
| | | |
| 999,156 | 238,210 | 226,735 | 1,673,806 |
| | | | |
| 579,841 | 215,625 | 145,945 | 603,141 |
| 140,700 | 101,931 | 23,667 | 158,007 |
| 9,424 | 9,819 | 9,819 | 9,819 |
| 4,500 | 3,250 | 3,000 | 4,500 |
| 36,411 | 22,979 | 688 | 18,630 |
| 60,853 | 32,784 | 2,513 | 29,360 |
| 12,137 | 7,660 | 229 | 6,210 |
| | | |
| | | |
| 155,214 | (155,838) | 40,874 | 843,968 |
| | | | |
| | | | |
| | | | |
| – | – | – | – |
| 8,501,711 | 3,204,818 | 1,430,953 | (471,731) |
| – | – | – | – |
| | | |
| | | |
| | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| | Conservative Allocation Fund |
| | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| Net Assets at beginning of period | | |
| Increase (decrease) in net assets from operations: | | |
| Net investment income | 571,244 | 786,646 |
| Net realized loss | (43,566) | (2,354,472) |
| Net change in unrealized appreciation | | |
| Net increase in net assets from operations | | |
| Distributions to shareholders from: | | |
| Net investment income | | |
| Class A | (512,068) | (1,001,065) |
| Class B | (93,464) | (191,959) |
| Class C | | |
| Total distributions | | |
| Capital Stock transactions: | | |
| Class A Shares | | |
| Shares sold | 5,124,445 | 9,874,441 |
| Issued to shareholders in reinvestment of distributions | 497,580 | 991,489 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
| Class B Shares | | |
| Shares sold | 1,207,321 | 2,290,041 |
| Issued to shareholders in reinvestment of distributions | 92,881 | 189,510 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
Class C Shares1 | | |
| Shares sold | 1,019,667 | 1,633,492 |
| Issued to shareholders in reinvestment of distributions | 50,575 | 83,576 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
| Total net increase (decrease) from capital stock transactions | | |
| Total increase) in net assets | | |
| Net Assets at end of period | | |
| Undistributed net investment income | | |
| Capital Share transactions: | | |
| Class A Shares | | |
| Shares sold | 534,982 | 1,145,414 |
| Issued to shareholders in reinvestment of distributions | 52,070 | 116,698 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
| Class B Shares | | |
| Shares sold | 125,685 | 263,886 |
| Issued to shareholders in reinvestment of distributions | 9,715 | 22,362 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
Class C Shares1 | | |
| Shares sold | 105,902 | 185,898 |
| Issued to shareholders in reinvestment of distributions | 5,285 | 9,841 |
| Shares redeemed | | |
| Net increase from capital stock transactions | | |
| 1 | Class C shares commenced investment operations on February 29, 2008. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| Aggressive Allocation Fund |
Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| | | |
| | | | |
| 1,028,699 | 1,277,060 | 233,569 | 209,218 |
| (4,204,532) | (8,133,079) | (2,356,030) | (2,893,316) |
| | | |
| | | |
| | | | |
| | | | |
| (1,146,272) | (983,056) | (243,892) | (76,578) |
| (197,558) | (218,911) | (26,973) | – |
| | | |
| | | |
| | | | |
| | | | |
| 10,016,421 | 17,769,059 | 3,993,969 | 6,876,110 |
| 1,139,420 | 978,110 | 243,605 | 76,555 |
| | | |
| | | |
| | | | |
| 3,100,889 | 5,580,531 | 988,130 | 1,963,764 |
| 196,551 | 217,667 | 26,923 | – |
| | | |
| | | |
| | | | |
| 672,460 | 1,233,059 | 97,046 | 283,975 |
| 26,883 | 19,723 | 1,835 | – |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | | |
| | | | |
| 1,101,070 | 2,270,585 | 464,892 | 982,720 |
| 126,884 | 129,038 | 28,626 | 11,358 |
| | | |
| | | |
| | | | |
| 340,834 | 718,101 | 115,233 | 294,040 |
| 21,863 | 28,716 | 3,172 | – |
| | | |
| | | |
| | | | |
| 73,613 | 162,462 | 11,350 | 37,993 |
| 2,990 | 2,599 | 216 | – |
| | | |
| | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| | | |
| | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| Net Assets at beginning of period | | | | |
| Increase (decrease) in net assets from operations: | | | | |
| Net investment income (loss) | – | 11,745 | 2,726,557 | 5,824,879 |
| Net realized gain (loss) on investments and options transactions | – | – | (378) | (867,253) |
Net change in unrealized appreciation on investments and options transactions | | | | |
| Net increase (decrease) in net assets resulting from operations | | | | |
| Distributions to shareholders from: | | | | |
| Net investment income | | | | |
| Class A | – | (11,307) | (540,716) | (1,241,362) |
Class B1 | – | (1,184) | (72,346) | (291,620) |
Class Y1 | | | | |
| Total distributions | | | | |
| Capital Stock transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 3,983,637 | 15,542,671 | 3,303,779 | 11,176,349 |
| Issued to shareholders in reinvestment of distributions | – | 10,817 | 504,351 | 1,148,936 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
Class B Shares1 | | | | |
| Shares sold | 231,519 | 3,595,448 | 572,350 | 1,331,858 |
| Issued to shareholders in reinvestment of distributions | – | 406 | 70,335 | 276,664 |
| Shares redeemed | | | | |
| Net decrease from capital stock transactions | | | | |
Class Y Shares1 | | | | |
| Shares sold | | | 17,065,126 | 42,940,604 |
| Issued to shareholders in reinvestment of distributions | | | 2,102,181 | 4,227,238 |
| Shares redeemed | | | | |
| Net increase from capital stock transactions | | | | |
| Total net increase (decrease) from capital stock transactions | | | | |
| Total increase (decrease) in net assets | | | | |
| Net Assets at end of period | | | | |
| Undistributed net investment income (loss) | | | | |
| Capital Share transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 3,983,637 | 15,542,671 | 326,388 | 1,126,923 |
| Issued to shareholders in reinvestment of distributions | – | 10,817 | 49,895 | 115,519 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
Class B Shares1 | | | | |
| Shares sold | 231,519 | 3,595,448 | 56,694 | 134,267 |
| Issued to shareholders in reinvestment of distributions | – | 406 | 6,956 | 27,853 |
| Shares redeemed | | | | |
| Net decrease from capital stock transactions | | | | |
Class Y Shares1 | | | | |
| Shares sold | | | 1,687,334 | 4,352,678 |
| Issued to shareholders in reinvestment of distributions | | | 208,039 | 425,037 |
| Shares redeemed | | | | |
| Net increase from capital stock transactions | | | | |
| 1 | Class Y shares are not available for the Cash Reserves and Diversified Income Funds. Class B shares are not available for the Equity Income Fund. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| | | |
Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Inception to April 30, 20102 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| | | | | | |
| | | | | | | |
| 4,424,977 | 6,914,561 | 1,375,014 | 3,384,519 | (91,756) | 777,452 | 2,462,117 |
| 2,004,020 | (2,161,856) | 2,136,137 | (14,421,210) | 770,112 | 1,650,962 | (19,479,396) |
| | | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | |
| (941,756) | (1,626,719) | (1,130,721) | (2,888,214) | – | (725,998) | (1,200,577) |
| (152,097) | (334,392) | (208,009) | (777,732) | | (50,104) | (204,938) |
| | | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | |
| 2,350,303 | 7,675,232 | 3,528,637 | 10,812,642 | 2,044,224 | 1,963,118 | 6,138,032 |
| 766,388 | 1,309,344 | 1,097,000 | 2,816,920 | – | 712,650 | 1,184,777 |
| | | | | | |
| | | | | | |
| | | | | | | |
| 179,035 | 416,638 | 1,225,032 | 1,333,130 | | 264,816 | 619,912 |
| 128,204 | 272,825 | 204,815 | 763,172 | | 49,583 | 202,297 |
| | | | | | |
| | | | | | |
| | | | | | | |
| 3,529,727 | 33,447,327 | – | – | 31,283,365 | 13,261,123 | 29,078,385 |
| 3,360,400 | 4,952,607 | – | – | – | 1,346,219 | 1,409,386 |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | | |
| | | | | | | |
| 347,526 | 1,266,566 | 336,639 | 1,134,694 | 199,689 | 174,233 | 650,460 |
| 113,153 | 213,932 | 104,127 | 295,353 | – | 63,067 | 125,639 |
| | | | | | |
| | | | | | |
| | | | | | | |
| 26,058 | 67,990 | 115,837 | 139,456 | | 23,514 | 67,117 |
| 18,702 | 44,515 | 19,345 | 79,929 | | 4,439 | 21,706 |
| | | | | | |
| | | | | | |
| | | | | | | |
| 527,885 | 5,834,491 | | | 3,118,858 | 1,173,376 | 3,079,972 |
| 497,068 | 807,800 | | | – | 119,240 | 149,616 |
| | | | | | |
| | | | | | |
| 2 | The Equity Income Fund commenced investment operations on October 31, 2009. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| | | |
| | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| Net Assets at beginning of period | | | | |
| Increase (decrease) in net assets from operations: | | | | |
| Net investment income (loss) | 155,214 | 653,764 | (155,838) | (212,269) |
| Net realized gain (loss) | 8,501,711 | (18,703,861) | 3,204,818 | (12,037,896) |
| Net change in unrealized appreciation | | | | |
| Net increase in net assets from operations | | | | |
| Distributions to shareholders from: | | | | |
| Net investment income | | | | |
| Class A | (159,641) | (58,214) | – | – |
| Class B | – | – | – | – |
| Class Y | | | | |
| Total distributions | | | | |
| Capital Stock transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 2,423,565 | 6,947,131 | 23,373,932 | 2,526,510 |
| Issued to shareholders in reinvestment of distributions | 156,733 | 57,588 | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class B Shares | | | | |
| Shares sold | 420,073 | 952,928 | 5,782,114 | 275,215 |
| Issued to shareholders in reinvestment of distributions | – | – | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class Y Shares | | | | |
| Shares sold | 6,164,368 | 25,528,207 | 3,203,255 | 3,874,233 |
| Issued to shareholders in reinvestment of distributions | 505,862 | 278,337 | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Total net increase (decrease) from capital stock transactions | | | | |
| Total increase (decrease) in net assets | | | | |
| Net Assets at end of period | | | | |
| Undistributed net investment income (loss) | | | | |
| Capital Share transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 171,975 | 621,666 | 4,691,470 | 643,331 |
| Issued to shareholders in reinvestment of distributions | 10,892 | 5,713 | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class B Shares | | | | |
| Shares sold | 31,719 | 85,350 | 1,129,501 | 74,972 |
| Issued to shareholders in reinvestment of distributions | – | – | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class Y Shares | | | | |
| Shares sold | 433,538 | 2,215,241 | 199,727 | 964,078 |
| Issued to shareholders in reinvestment of distributions | 34,984 | 27,504 | – | – |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Statements of Changes in Net Assets
| | | |
| | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 | Six-Months Ended April 30, 2010 | Year Ended October 31, 2009 |
| Net Assets at beginning of period | | | | |
| Increase (decrease) in net assets from operations: | | | | |
| Net investment income | 40,874 | 129,116 | 843,968 | 2,427,656 |
| Net realized gain (loss) | 1,430,953 | (1,830,712) | (471,731) | (22,836,035) |
| Net change in unrealized appreciation | | | | |
| Net increase in net assets from operations | | | | |
| Distributions to shareholders from: | | | | |
| Net investment income | | | | |
| Class A | (1,513) | (1,934) | (571,003) | (359,378) |
| Class B | – | – | (86,425) | (68,725) |
| Class Y | (80,058) | (129,838) | (2,166,283) | (1,887,954) |
| Net realized gains | | | | |
| Class A | – | – | – | (473,176) |
| Class B | – | – | – | (148,222) |
| Class Y | | | | |
| Total distributions | | | | |
| Capital Stock transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 785,652 | 311,355 | 1,612,553 | 3,498,228 |
| Issued to shareholders in reinvestment of distributions | 1,513 | 1,934 | 552,568 | 813,053 |
| Shares redeemed | (85,825) | (79,716) | (2,159,154) | (3,587,179) |
| Redemption fees | | | | |
| Net increase from capital stock transactions | | | | |
| Class B Shares | | | | |
| Shares sold | 115,501 | 65,752 | 191,975 | 375,596 |
| Issued to shareholders in reinvestment of distributions | – | – | 85,641 | 214,432 |
| Shares redeemed | (21,715) | (45,226) | (613,971) | (2,363,220) |
| Redemption fees | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class Y Shares | | | | |
| Shares sold | 14,230,704 | 4,777,423 | 2,051,509 | 22,273,702 |
| Issued to shareholders in reinvestment of distributions | 80,058 | 129,838 | 2,166,283 | 4,094,248 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Total net increase (decrease) from capital stock transactions | | | | |
| Total increase (decrease) in net assets | | | | |
| Net Assets at end of period | | | | |
| Undistributed net investment income | | | | |
| Capital Share transactions: | | | | |
| Class A Shares | | | | |
| Shares sold | 101,675 | 47,485 | 159,445 | 419,009 |
| Issued to shareholders in reinvestment of distributions | 168 | 301 | 54,280 | 100,725 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class B Shares | | | | |
| Shares sold | 13,489 | 9,980 | 19,202 | 40,034 |
| Issued to shareholders in reinvestment of distributions | – | – | 8,505 | 26,897 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
| Class Y Shares | | | | |
| Shares sold | 1,824,323 | 741,668 | 197,480 | 2,842,866 |
| Issued to shareholders in reinvestment of distributions | 8,925 | 20,319 | 213,007 | 507,971 |
| Shares redeemed | | | | |
| Net increase (decrease) from capital stock transactions | | | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
CONSERVATIVE ALLOCATION FUND |
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 9.34 | $ 8.53 | $11.13 | $10.53 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.15 | 0.24 | 0.28 | 0.24 | 0.05 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.57 | 1.22 | (2.30) | 0.73 | 0.53 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.17) | (0.41) | (0.27) | (0.12) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.17) | (0.41) | (0.30) | (0.13) | – |
| Net increase (decrease) in net asset value | 0.40 | 0.81 | (2.60) | 0.60 | 0.53 |
Net Asset Value at end of period | $ 9.74 | $ 9.34 | $ 8.53 | $11.13 | $10.53 |
Total Return (%)2 | 6.133 | 14.91 | (21.19) | 6.94 | 5.303 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $31,324 | $27,225 | $19,753 | $16,003 | $3,031 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.704 | 0.92 | 1.14 | 1.79 | 10.534 |
| After reimbursement of expenses by Adviser (%) | 0.704 | 0.70 | 0.70 | 0.70 | 0.704 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 3.084 | 2.80 | 2.75 | 3.00 | 2.784 |
Portfolio Turnover (%)5 | 283 | 38 | 90 | 39 | 263 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 9.34 | $ 8.48 | $11.07 | $10.51 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.11 | 0.18 | 0.18 | 0.17 | 0.02 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.53 | 1.16 | (2.37) | 0.65 | 0.51 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.13) | (0.30) | (0.19) | (0.08) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.13) | (0.30) | (0.22) | (0.09) | – |
| Net increase (decrease) in net asset value | 0.40 | 0.86 | (2.59) | 0.56 | 0.51 |
Net Asset Value at end of period | $ 9.74 | $ 9.34 | $ 8.48 | $11.07 | $10.51 |
Total Return (%)2 | 5.733 | 14.09 | (21.82) | 6.16 | 5.103 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $7,394 | $6,287 | $5,506 | $4,173 | $ 622 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.454 | 1.68 | 1.89 | 2.53 | 10.214 |
| After reimbursement of expenses by Adviser (%) | 1.454 | 1.45 | 1.45 | 1.45 | 1.454 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 2.344 | 2.16 | 2.01 | 2.01 | 2.204 |
Portfolio Turnover (%)5 | 283 | 38 | 90 | 39 | 263 |
| 1 | Commenced investment operations June 30, 2006. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
CONSERVATIVE ALLOCATION FUND |
| | Six Months Ended 04/30/10 | | |
|
| CLASS C | | | |
Net Asset Value at beginning of period | $ 9.35 | $ 8.48 | $10.47 |
| Income from Investment Operations: | | | |
| Net investment income | 0.11 | 0.16 | 0.03 |
| Net realized and unrealized gain (loss) on investments | | | |
| Total from investment operations | 0.53 | 1.17 | (1.99) |
| Less Distributions: | | | |
| Distributions from net investment income | | | |
| Total distributions | (0.13) | (0.30) | – |
| Net increase (decrease) in net asset value | 0.40 | 0.87 | (1.99) |
Net Asset Value at end of period | $ 9.75 | $ 9.35 | $ 8.48 |
Total Return (%)3 | 5.724 | 14.21 | (19.01)4 |
| Ratios/Supplemental Data: | | | |
| Net Assets at end of period (in 000’s) | $4,259 | $3,412 | $2,198 |
| Ratios of expenses to average net assets: | | | |
| Before reimbursement of expenses by Adviser (%) | 1.455 | 1.87 | 2.675 |
| After reimbursement of expenses by Adviser (%) | 1.455 | 1.45 | 1.455 |
| Ratio of net investment income to average net assets | | | |
| After reimbursement of expenses by Adviser (%) | 2.335 | 2.03 | 0.605 |
Portfolio Turnover (%)7 | 284 | 38 | 904 |
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 8.77 | $ 7.84 | $11.82 | $10.65 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.10 | 0.15 | 0.16 | 0.17 | 0.02 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.75 | 1.08 | (3.72) | 1.29 | 0.65 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.15) | (0.15) | (0.18) | (0.12) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.15) | (0.15) | (0.26) | (0.12) | – |
| Net increase (decrease) in net asset value | 0.60 | 0.93 | (3.98) | 1.17 | 0.65 |
Net Asset Value at end of period | $ 9.37 | $ 8.77 | $ 7.84 | $11.82 | $10.65 |
Total Return (%)3 | 8.664 | 14.12 | (32.18) | 12.26 | 6.504 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $75,375 | $64,631 | $50,326 | $56,312 | $8,762 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.705 | 0.78 | 0.79 | 0.89 | 4.735 |
| After reimbursement of expenses by Adviser (%) | 0.705 | 0.70 | 0.70 | 0.70 | 0.705 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 2.385 | 1.93 | 1.41 | 1.45 | 1.345 |
Portfolio Turnover (%)7 | 344 | 30 | 83 | 21 | 114 |
| 1 | Commenced investment operations June 30, 2006. | 5 | Annualized. |
| 2 | Commenced investment operations February 29, 2008. | 6 | Amounts represent less than $0.005 per share. |
| 3 | Total return without applicable sales charge. | 7 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
| 4 | Not annualized. | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 8.72 | $ 7.80 | $11.75 | $10.63 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.07 | 0.10 | 0.06 | 0.09 | 0.01 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.70 | 1.02 | (3.78) | 1.20 | 0.63 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.08) | (0.10) | (0.09) | (0.08) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.08) | (0.10) | (0.17) | (0.08) | – |
| Net increase (decrease) in net asset value | 0.63 | 0.92 | (3.95) | 1.12 | 0.63 |
Net Asset Value at end of period | $ 9.34 | $ 8.72 | $ 7.80 | $11.75 | $10.63 |
Total Return (%)3 | 8.124 | 13.20 | (32.64) | 11.38 | 6.304 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $23,348 | $20,221 | $17,728 | $19,825 | $3,289 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.455 | 1.53 | 1.54 | 1.64 | 4.715 |
| After reimbursement of expenses by Adviser (%) | 1.455 | 1.45 | 1.45 | 1.45 | 1.455 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.635 | 1.26 | 0.66 | 0.63 | 0.675 |
Portfolio Turnover (%)6 | 344 | 30 | 83 | 21 | 114 |
| | Six Months Ended 04/30/10 | | |
|
| CLASS C | | | |
Net Asset Value at beginning of period | $ 8.72 | $ 7.80 | $10.61 |
| Income from Investment Operations: | | | |
| Net investment income | 0.06 | 0.09 | 0.02 |
| Net realized and unrealized gain (loss) on investments | | | |
| Total from investment operations | 0.71 | 1.02 | (2.81) |
| Less Distributions: | | | |
| Distributions from net investment income | (0.08) | (0.10) | – |
| Distributions from capital gains | | | |
| Total distributions | (0.08) | (0.10) | – |
| Net increase (decrease) in net asset value | 0.63 | 0.92 | (2.81) |
Net Asset Value at end of period | $ 9.35 | $ 8.72 | $ 7.80 |
Total Return (%)3 | 8.234 | 13.20 | (26.48)4 |
| Ratios/Supplemental Data: | | | |
| Net Assets at end of period (in 000’s) | $3,775 | $3,094 | $2,149 |
| Ratios of expenses to average net assets: | | | |
| Before reimbursement of expenses by Adviser (%) | 1.455 | 1.74 | 2.385 |
| After reimbursement of expenses by Adviser (%) | 1.455 | 1.45 | 1.455 |
| Ratio of net investment income to average net assets | | | |
| After reimbursement of expenses by Adviser (%) | 1.635 | 0.98 | 0.395 |
Portfolio Turnover (%)6 | 344 | 30 | 834 |
| 1 | Commenced investment operations June 30, 2006. | 4 | Not annualized. |
| 2 | Commenced investment operations February 29, 2008. | 5 | Annualized. |
| 3 | Total return without applicable sales charge. | 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
AGGRESSIVE ALLOCATION FUND |
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 8.12 | $ 7.16 | $12.53 | $10.76 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.07 | 0.08 | 0.04 | 0.09 | (0.01) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.87 | 1.00 | (5.14) | 1.92 | 0.76 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.09) | (0.04) | (0.13) | (0.15) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.09) | (0.04) | (0.23) | (0.15) | – |
| Net increase (decrease) in net asset value | 0.78 | 0.96 | (5.37) | 1.77 | 0.76 |
Net Asset Value at end of period | $ 8.90 | $ 8.12 | $ 7.16 | $12.53 | $10.76 |
Total Return (%)2 | 10.763 | 14.00 | (41.73) | 18.00 | 7.603 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $26,350 | $21,855 | $14,975 | $18,824 | $2,675 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.704 | 1.11 | 1.25 | 1.62 | 10.144 |
| After reimbursement of expenses by Adviser (%) | 0.704 | 0.70 | 0.70 | 0.70 | 0.704 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.634 | 1.06 | 0.09 | (0.33) | (0.56)4 |
Portfolio Turnover (%)6 | 443 | 17 | 91 | 24 | 103 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 8.05 | $ 7.12 | $12.46 | $10.74 | $10.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.04 | 0.03 | (0.06) | 0.005 | (0.01) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.83 | 0.93 | (5.20) | 1.82 | 0.74 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.03) | – | (0.04) | (0.10) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.03) | – | (0.14) | (0.10) | – |
| Net increase (decrease) in net asset value | 0.81 | 0.93 | (5.34) | 1.72 | 0.74 |
Net Asset Value at end of period | $ 8.85 | $ 8.05 | $ 7.12 | $12.46 | $10.74 |
Total Return (%)2 | 10.303 | 13.06 | (42.17) | 17.11 | 7.403 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $8,718 | $7,518 | $6,050 | $7,234 | $1,164 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.454 | 1.88 | 2.00 | 2.38 | 10.074 |
| After reimbursement of expenses by Adviser (%) | 1.454 | 1.45 | 1.45 | 1.45 | 1.454 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.924 | 0.44 | (0.73) | (1.06) | (1.28)4 |
Portfolio Turnover (%)6 | 443 | 17 | 90 | 24 | 103 |
| 1 | Commenced investment operations June 30, 2006. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Amounts represent less than $0.005 per share. |
| 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
AGGRESSIVE ALLOCATION FUND |
| | Six Months Ended 04/30/10 | | |
|
| CLASS C | | | |
Net Asset Value at beginning of period | $ 8.06 | $ 7.12 | $10.70 |
| Income from Investment Operations: | | | |
| Net investment income | 0.04 | 0.01 | (0.06) |
| Net realized and unrealized gain (loss) on investments | | | |
| Total from investment operations | 0.83 | 0.94 | (3.58) |
| Less Distributions: | | | |
| Distributions from net investment income | | | |
| Total distributions | (0.03) | – | – |
| Net increase (decrease) in net asset value | 0.80 | 0.94 | (3.58) |
Net Asset Value at end of period | $ 8.86 | $ 8.06 | $ 7.12 |
Total Return (%)2 | 10.293 | 13.20 | (33.46)3 |
| Ratios/Supplemental Data: | | | |
| Net Assets at end of period (in 000’s) | $559 | $ 470 | $ 229 |
| Ratios of expenses to average net assets: | | | |
| Before reimbursement of expenses by Adviser (%) | 1.454 | 3.72 | 7.844 |
| After reimbursement of expenses by Adviser (%) | 1.454 | 1.45 | 1.454 |
| Ratio of net investment income to average net assets | | | |
| After reimbursement of expenses by Adviser (%) | 0.964 | 0.28 | (1.23)4 |
Portfolio Turnover (%)6 | 443 | 17 | 913 |
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | | | | | |
| Total from investment operations | – | 0.005 | 0.02 | 0.05 | 0.04 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | – | (0.00)5 | (0.02) | (0.05) | (0.04) |
| Net increase (decrease) in net asset value | – | (0.00)5 | – | – | – |
Net Asset Value at end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)2 | 0.003 | 0.07 | 2.26 | 4.73 | 4.27 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $12,701 | $13,690 | $15,339 | $12,494 | $10,989 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement and waiver of expenses by Adviser (%) | 0.554 | 0.80 | 1.02 | 1.09 | 1.09 |
| After reimbursement and waiver of expenses by Adviser (%) | 0.134 | 0.337 | 0.55 | 0.55 | 0.55 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement and waiver of expenses by Adviser (%) | – | 0.077 | 2.16 | 4.64 | 4.13 |
| 1 | Commenced investment operations February 29, 2008. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Amounts represent less than $0.005 per share. |
| 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
| 7 | Amount includes fees waived by the adviser and distributor (See Note 3). |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
| Income from Investment Operations: | | | | | |
| Net investment income | | | | | |
| Total from investment operations | – | 0.007 | 0.01 | 0.04 | 0.03 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | – | (0.00)7 | (0.01) | (0.04) | (0.03) |
| Net increase (decrease) in net asset value | – | (0.00)7 | – | – | – |
Net Asset Value at end of period | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 | $ 1.00 |
Total Return (%)3 | 0.005 | 0.01 | 1.50 | 3.94 | 3.48 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $2,330 | $3,250 | $4,655 | $2,779 | $4,242 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement and waiver of expenses by Adviser (%) | 1.306 | 1.56 | 1.77 | 1.84 | 1.84 |
| After reimbursement and waiver of expenses by Adviser (%) | 0.136 | 0.408 | 1.30 | 1.30 | 1.30 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement and waiver of expenses by Adviser (%) | – | 0.018 | 1.32 | 3.88 | 3.37 |
| | For the Period Ended 6/14/071 | |
| CLASS Y | | |
Net Asset Value at beginning of period | $ 1.00 | $ 1.00 |
| Income from Investment Operations: | | |
| Net investment income | | |
| Total from investment operations | 0.03 | 0.02 |
| Less Distributions: | | |
| Distributions from net investment income | | |
| Total distributions | (0.03) | (0.02) |
| Net increase (decrease) in net asset value | 0.00 | 0.00 |
Net Asset Value at end of period | $ 1.00 | $ 1.00 |
Total Return (%)3 | N/A | 1.575 |
| Ratios/Supplemental Data: | | |
| Net Assets at end of period (in 000’s) | $ – | $2,746 |
| Ratios of expenses to average net assets: | | |
| Before reimbursement of expenses by Adviser (%) | 1.006 | 1.356 |
| After reimbursement of expenses by Adviser (%) | 0.556 | 0.556 |
| Ratio of net investment income to average net assets | | |
| After reimbursement of expenses by Adviser (%) | 4.626 | 4.756 |
| 1 | Cash Reserves Fund Class Y shares were liquidated June 14, 2007. |
| 2 | Commenced investment operations June 30, 2006. |
| 3 | Total return without applicable sales charge. |
| 4 | Amount includes fees waived by distributor (see Note 3). |
| 5 | Not annualized. |
| 6 | Annualized. |
| 7 | Amounts represent less than $0.005 per share. |
| 8 | Amount includes fees waived by the adviser and distributor (see Note 3). |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $10.11 | $ 9.48 | $ 9.78 | $ 9.88 | $ 9.85 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.12 | 0.30 | 0.39 | 0.43 | 0.42 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.14 | 0.93 | 0.09 | 0.33 | 0.45 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.12) | (0.30) | (0.39) | (0.36) | (0.42) |
| Return of capital | | | | | |
| Total distributions | (0.12) | (0.30) | (0.39) | (0.43) | (0.42) |
| Net increase (decrease) in net asset value | 0.02 | 0.63 | (0.30) | (0.10) | 0.03 |
Net Asset Value at end of period | $10.13 | $10.11 | $ 9.48 | $ 9.78 | $ 9.88 |
Total Return (%)1 | 1.442 | 9.91 | 0.89 | 3.42 | 4.70 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $43,350 | $44,099 | $37,882 | $55,271 | $59,646 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.903 | 0.94 | 1.02 | 1.08 | 1.08 |
| After reimbursement of expenses by Adviser (%) | 0.903 | 0.90 | 0.90 | 0.90 | 0.90 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 2.513 | 3.04 | 4.05 | 4.40 | 4.27 |
Portfolio Turnover (%)4 | 42 | 37 | 22 | 40 | 33 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $10.12 | $ 9.48 | $ 9.78 | $ 9.88 | $ 9.85 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.09 | 0.23 | 0.32 | 0.35 | 0.35 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.10 | 0.87 | 0.02 | 0.25 | 0.38 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.09) | (0.23) | (0.32) | (0.29) | (0.35) |
| Return of capital | | | | | |
| Total distributions | (0.09) | (0.23) | (0.32) | (0.35) | (0.35) |
| Net increase (decrease) in net asset value | 0.01 | 0.64 | (0.30) | (0.10) | 0.03 |
Net Asset Value at end of period | $10.13 | $10.12 | $ 9.48 | $ 9.78 | $ 9.88 |
Total Return (%)1 | 0.962 | 9.20 | 0.13 | 2.64 | 3.91 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $8,046 | $9,363 | $15,941 | $26,507 | $37,233 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.653 | 1.69 | 1.77 | 1.83 | 1.83 |
| After reimbursement of expenses by Adviser (%) | 1.653 | 1.65 | 1.65 | 1.65 | 1.65 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.763 | 2.37 | 3.29 | 3.65 | 3.51 |
Portfolio Turnover (%)4 | 42 | 37 | 22 | 40 | 33 |
| 1 | Total return without applicable sales charge. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $10.11 | $ 9.47 | $ 9.77 | $ 9.88 | $ 9.61 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.14 | 0.32 | 0.42 | 0.45 | 0.15 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.15 | 0.96 | 0.12 | 0.34 | 0.42 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.14) | (0.32) | (0.42) | (0.38) | (0.15) |
| Return of capital | | | | | |
| Total distributions | (0.14) | (0.32) | (0.42) | (0.45) | (0.15) |
| Net increase (decrease) in net asset value | 0.01 | 0.64 | (0.30) | (0.11) | 0.27 |
Net Asset Value at end of period | $10.12 | $10.11 | $ 9.47 | $ 9.77 | $ 9.88 |
Total Return (%)2 | 1.473 | 10.30 | 1.14 | 3.58 | 4.393 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $162,914 | $147,145 | $105,043 | $34,542 | $6,141 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.654 | 0.69 | 0.76 | 0.82 | 0.894 |
| After reimbursement of expenses by Adviser (%) | 0.654 | 0.65 | 0.65 | 0.65 | 0.654 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 2.764 | 3.28 | 4.23 | 4.69 | 4.674 |
Portfolio Turnover (%)5 | 43 | 37 | 223 | 40 | 333 |
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 6.66 | $ 5.57 | $ 7.29 | $ 7.36 | $ 7.29 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.26 | 0.46 | 0.47 | 0.53 | 0.52 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.52 | 1.55 | (1.18) | 0.45 | 0.59 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | (0.26) | (0.46) | (0.54) | (0.52) | (0.52) |
| Net increase (decrease) in net asset value | 0.26 | 1.09 | (1.72) | (0.07) | 0.07 |
Net Asset Value at end of period | $ 6.92 | $ 6.66 | $ 5.57 | $ 7.29 | $ 7.36 |
Total Return (%)2 | 7.913 | 28.98 | (17.24) | 6.31 | 8.33 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $25,172 | $25,684 | $17,818 | $35,610 | $36,281 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.004 | 1.05 | 1.14 | 1.21 | 1.22 |
| After reimbursement of expenses by Adviser (%) | 1.004 | 1.00 | 1.00 | 1.00 | 1.00 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 7.604 | 7.78 | 6.77 | 7.10 | 6.98 |
Portfolio Turnover (%)5 | 263 | 73 | 59 | 74 | 67 |
| 1 | Commenced investment operations June 30, 2006. | 4 | Annualized. |
| 2 | Total return without applicable sales charge. | 5 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
| 3 | Not annualized. | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS B | | | | | |
Net Asset Value at beginning of period | | | | | |
| Income from Investment Operations: | $ 6.74 | $ 5.63 | $ 7.32 | $ 7.39 | $ 7.31 |
| Net investment income | | | | | |
| Net realized and unrealized gain (loss) on investments | 0.23 | 0.44 | 0.45 | 0.49 | 0.47 |
| Total from investment operations | | | | | |
| Less Distributions: | 0.49 | 1.53 | (1.25) | 0.40 | 0.54 |
| Distributions from net investment income | | | | | |
| Return of capital | | | | | |
| Total distributions | (0.23) | (0.42) | (0.44) | (0.47) | (0.46) |
| Net increase (decrease) in net asset value | 0.26 | 1.11 | (1.69) | (0.07) | 0.08 |
Net Asset Value at end of period | $ 7.00 | $ 6.74 | $ 5.63 | $ 7.32 | $ 7.39 |
Total Return (%)2 | 7.423 | 28.08 | (17.93) | 5.50 | 7.64 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $4,487 | $4,711 | $ 5,833 | $12,255 | $17,099 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.754 | 1.81 | 1.90 | 1.96 | 1.97 |
| After reimbursement of expenses by Adviser (%) | 1.754 | 1.75 | 1.75 | 1.75 | 1.75 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 6.854 | 7.01 | 6.04 | 6.37 | 6.24 |
Portfolio Turnover (%)5 | 263 | 73 | 59 | 74 | 67 |
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $ 6.65 | $ 5.56 | $ 7.30 | $ 7.36 | $ 7.21 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.27 | 0.47 | 0.48 | 0.51 | 0.16 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.52 | 1.57 | (1.17) | 0.48 | 0.33 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | (0.27) | (0.48) | (0.57) | (0.54) | (0.18) |
| Net increase (decrease) in net asset value | 0.25 | 1.09 | (1.74) | (0.06) | 0.15 |
Net Asset Value at end of period | $ 6.90 | $ 6.65 | $ 5.56 | $ 7.30 | $ 7.36 |
Total Return (%)2 | 7.913 | 29.35 | (17.09) | 6.72 | 4.593 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $89,682 | $80,394 | $33,127 | $21,115 | $ 2,637 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.754 | 0.80 | 0.89 | 0.94 | 1.064 |
| After reimbursement of expenses by Adviser (%) | 0.754 | 0.75 | 0.75 | 0.75 | 0.754 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 7.854 | 8.04 | 7.03 | 7.43 | 7.334 |
Portfolio Turnover (%)5 | 263 | 73 | 59 | 74 | 673 |
| 1 | Commenced investment operations June 30, 2006. | 4 | Annualized. |
| 2 | Total return without applicable sales charge. | 5 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
| 3 | Not annualized. | | |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $10.17 | $ 9.92 | $13.24 | $13.20 | $12.25 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.16 | 0.38 | 0.45 | 0.49 | 0.26 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.81 | 0.66 | (1.85) | 0.76 | 1.21 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.16) | (0.41) | (0.47) | (0.49) | (0.26) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.16) | (0.41) | (1.47) | (0.72) | (0.26) |
| Net increase (decrease) in net asset value | 0.65 | 0.25 | (3.32) | 0.04 | 0.95 |
Net Asset Value at end of period | $10.82 | $10.17 | $ 9.92 | $13.24 | $13.20 |
Total Return (%)1 | 7.942 | 7.07 | (15.39) | 5.95 | 9.97 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $74,186 | $71,014 | $70,095 | $90,254 | $91,339 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.103 | 1.27 | 1.29 | 1.25 | 1.21 |
| After reimbursement of expenses by Adviser (%) | 1.103 | 1.10 | 1.10 | 1.10 | 1.10 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 3.173 | 3.98 | 3.94 | 3.73 | 2.01 |
Portfolio Turnover (%)4 | 112 | 28 | 15 | 62 | 62 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $10.22 | $ 9.96 | $13.25 | $13.22 | $12.26 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.12 | 0.32 | 0.39 | 0.40 | 0.16 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.77 | 0.60 | (1.95) | 0.66 | 1.12 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.12) | (0.34) | (0.34) | (0.40) | (0.16) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.12) | (0.34) | (1.34) | (0.63) | (0.16) |
| Net increase (decrease) in net asset value | 0.65 | 0.26 | (3.29) | 0.03 | 0.96 |
Net Asset Value at end of period | $10.87 | $10.22 | $9.96 | $13.25 | $13.22 |
Total Return (%)1 | 7.592 | 6.24 | (16.01) | 5.09 | 9.23 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $18,103 | $18,322 | $28,156 | $57,581 | $80,486 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.853 | 2.04 | 2.04 | 2.00 | 1.96 |
| After reimbursement of expenses by Adviser (%) | 1.853 | 1.85 | 1.85 | 1.85 | 1.85 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 2.423 | 3.33 | 3.18 | 2.99 | 1.27 |
Portfolio Turnover (%)4 | 112 | 28 | 15 | 62 | 62 |
| 1 | Total return without applicable sales charge. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Inception to 4/30/101 (unaudited) |
| CLASS A | |
Net Asset Value at beginning of period | $10.00 |
| Income from Investment Operations: | |
| Net investment loss | (0.04) |
| Net realized and unrealized gain on investments | |
| Total from investment operations | 0.47 |
| Net increase in net asset value | 0.47 |
Net Asset Value at end of period | $10.47 |
Total Return (%)2 | 4.70 |
| Ratios/Supplemental Data: | |
| Net Assets at end of period (in 000’s) | $2,078 |
| Ratios of expenses to average net assets: | 1.243 |
| Ratio of net investment income to average net assets | (0.84)3 |
Portfolio Turnover (%)4 | 29 |
| CLASS Y | |
Net Asset Value at beginning of period1 | $10.00 |
| Income from Investment Operations: | |
| Net investment loss | (0.03) |
| Net realized and unrealized gain on investments | |
| Total from investment operations | 0.48 |
| Net increase in net asset value | 0.48 |
Net Asset Value at end of period | $10.48 |
Total Return (%)2 | 4.80 |
| Ratios/Supplemental Data: | |
| Net Assets at end of period (in 000’s) | $32,514 |
| Ratios of expenses to average net assets | 0.983 |
| Ratio of net investment income to average net assets | (0.63)3 |
Portfolio Turnover (%)4 | 29 |
| 1 | Commenced investment operations October 31, 2009 |
| 2 | Total return without applicable sales charge |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $10.57 | $10.60 | $16.91 | $15.47 | $13.20 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.05 | 0.20 | 0.28 | 0.22 | 0.22 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.34 | 0.19 | (6.02) | 1.67 | 2.45 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.14) | (0.22) | (0.19) | (0.23) | (0.18) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.14) | (0.22) | (0.29) | (0.23) | (0.18) |
| Net increase (decrease) in net asset value | 1.20 | (0.03) | (6.31) | 1.44 | 2.27 |
Net Asset Value at end of period | $11.77 | $10.57 | $10.60 | $16.91 | $15.47 |
Total Return (%)1 | 12.762 | 2.08 | (36.17) | 10.88 | 18.75 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $58,249 | $54,242 | $58,075 | $116,358 | $113,441 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.163 | 1.19 | 1.16 | 1.13 | 1.16 |
| After reimbursement of expenses by Adviser (%) | 1.163 | 1.18 | 1.16 | 1.13 | 1.00 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.893 | 2.00 | 1.87 | 1.32 | 1.53 |
Portfolio Turnover (%)4 | 242 | 86 | 55 | 47 | 45 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $10.38 | $10.42 | $16.61 | $15.20 | $12.97 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.02 | 0.19 | 0.27 | 0.16 | 0.15 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.29 | 0.11 | (6.02) | 1.52 | 2.31 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.06) | (0.15) | (0.07) | (0.11) | (0.08) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.06) | (0.15) | (0.17) | (0.11) | (0.08) |
| Net increase (decrease) in net asset value | 1.23 | (0.04) | (6.19) | 1.41 | 2.23 |
Net Asset Value at end of period | $11.61 | $10.38 | $10.42 | $16.61 | $15.20 |
Total Return (%)1 | 12.422 | 1.23 | (36.59) | 10.03 | 17.86 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $9,608 | $9,637 | $14,993 | $43,146 | $62,766 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.913 | 1.95 | 1.91 | 1.89 | 1.90 |
| After reimbursement of expenses by Adviser (%) | 1.913 | 1.94 | 1.91 | 1.88 | 1.75 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.143 | 1.36 | 1.11 | 0.61 | 0.80 |
Portfolio Turnover (%)4 | 242 | 86 | 55 | 47 | 45 |
| 1 | Total return without applicable sales charge. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $10.58 | $10.62 | $16.93 | $15.48 | $14.07 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.06 | 0.18 | 0.22 | 0.21 | 0.03 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.36 | 0.21 | (5.98) | 1.72 | 1.41 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.17) | (0.25) | (0.23) | (0.27) | – |
| Return of capital | | | | | |
| Total distributions | (0.17) | (0.25) | (0.33) | (0.27) | – |
| Net increase (decrease) in net asset value | 1.19 | (0.04) | (6.31) | 1.45 | 1.41 |
Net Asset Value at end of period | $11.77 | $10.58 | $10.62 | $16.93 | $15.48 |
Total Return (%)2 | 12.943 | 2.24 | (35.97) | 11.21 | 10.023 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $99,444 | $80,167 | $54,828 | $47,949 | $7,169 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.914 | 0.93 | 0.91 | 0.87 | 0.96 |
| After reimbursement of expenses by Adviser (%) | 0.914 | 0.93 | 0.91 | 0.88 | 0.75 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.124 | 2.12 | 2.07 | 1.47 | 1.314 |
Portfolio Turnover (%)6 | 243 | 86 | 55 | 47 | 453 |
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $13.15 | $11.07 | $17.39 | $14.70 | $13.72 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.01 | 0.05 | 0.03 | (0.00)5 | 0.005 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.77 | 2.10 | (6.32) | 2.69 | 1.05 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | (0.05) | (0.02) | – | – | (0.07) |
| Net increase (decrease) in net asset value | 1.72 | 2.08 | (6.32) | 2.69 | 0.98 |
Net Asset Value at end of period | $14.87 | $13.15 | $11.07 | $17.39 | $14.70 |
Total Return (%)2 | 13.443 | 18.99 | (36.34) | 18.30 | 7.71 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $50,417 | $45,398 | $38,538 | $68,253 | $65,216 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.204 | 1.31 | 1.34 | 1.43 | 1.45 |
| After reimbursement of expenses by Adviser (%) | 1.204 | 1.20 | 1.20 | 1.20 | 1.20 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.094 | 0.41 | 0.18 | (0.02) | 0.09 |
Portfolio Turnover (%)6 | 413 | 105 | 141 | 93 | 148 |
| 1 | Commenced investment operations June 30, 2006. | 4 | Annualized. |
| 2 | Total return without applicable sales charge. | 5 | Amounts represent less than $0.005 per share. |
| 3 | Not annualized. | 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $12.16 | $10.30 | $16.29 | $13.88 | $12.98 |
| Income from Investment Operations: | | | | | |
| Net investment income | (0.04) | (0.02) | (0.11) | (0.13) | (0.09) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.58 | 1.86 | (5.99) | 2.41 | 0.90 |
| Net increase (decrease) in net asset value | 1.58 | 1.86 | (5.99) | 2.41 | 0.90 |
Net Asset Value at end of period | $13.74 | $12.16 | $10.30 | $16.29 | $13.88 |
Total Return (%)2 | 12.993 | 18.06 | (36.77) | 17.36 | 6.93 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $9,909 | $9,665 | $13,580 | $36,147 | $43,975 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.954 | 2.07 | 2.10 | 2.18 | 2.20 |
| After reimbursement of expenses by Adviser (%) | 1.954 | 1.95 | 1.95 | 1.95 | 1.95 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | (0.66)4 | (0.30) | (0.56) | (0.76) | (0.65) |
Portfolio Turnover (%)6 | 413 | 105 | 141 | 93 | 148 |
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $13.23 | $11.14 | $17.45 | $14.72 | $13.71 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.04 | 0.06 | 0.06 | 0.02 | (0.00)5 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 1.80 | 2.13 | (6.31) | 2.73 | 1.01 |
| Less Distributions: | | | | | |
| Distributions from net investment income | | | | | |
| Total distributions | (0.08) | (0.04) | – | – | – |
| Net increase (decrease) in net asset value | 1.72 | 2.09 | (6.31) | 2.73 | 1.01 |
Net Asset Value at end of period | $14.95 | $13.23 | $11.14 | $17.45 | $14.72 |
Total Return (%)2 | 13.603 | 19.26 | (36.16) | 18.55 | 7.373 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $99,332 | $106,390 | $70,203 | $52,811 | $9,939 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 0.954 | 1.06 | 1.09 | 1.16 | 1.304 |
| After reimbursement of expenses by Adviser (%) | 0.954 | 0.95 | 0.95 | 0.95 | 0.954 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.344 | 0.63 | 0.45 | 0.19 | (0.07)4 |
Portfolio Turnover (%)6 | 413 | 105 | 141 | 93 | 1483 |
| 1 | Commenced investment operations June 30, 2006. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Amounts represent less than $0.005 per share. |
| 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 4.95 | $ 4.08 | $ 7.45 | $ 6.27 | $ 5.36 |
| Income from Investment Operations: | | | | | |
| Net investment income | (0.01) | (0.03) | (0.04) | (0.07) | (0.04) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.88 | 0.87 | (3.32) | 1.18 | 0.91 |
| Less Distributions: | | | | | |
| Distributions from capital gains | | | | | |
| Total distributions | 0.88 | – | (0.05) | – | – |
| Net increase (decrease) in net asset value | 0.88 | 0.87 | (3.37) | 1.18 | 0.91 |
Net Asset Value at end of period | $ 5.83 | $ 4.95 | $ 4.08 | $ 7.45 | $ 6.27 |
Total Return (%)1 | 17.78 | 21.03 | (44.71) | 18.82 | 16.98 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $44,687 | $17,138 | $14,241 | $33,459 | $33,899 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.403 | 1.56 | 1.44 | 1.50 | 1.61 |
| After reimbursement of expenses by Adviser (%) | 1.403 | 1.40 | 1.40 | 1.33 | 1.20 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | (0.60)3 | (0.61) | (0.56) | (0.87) | (0.59) |
Portfolio Turnover (%)4 | 612 | 198 | 127 | 109 | 207 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 4.60 | $ 3.83 | $ 7.04 | $ 5.96 | $ 5.14 |
| Income from Investment Operations: | | | | | |
| Net investment income | (0.02) | (0.06) | (0.10) | (0.13) | (0.08) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.79 | 0.77 | (3.16) | 1.08 | 0.82 |
| Less Distributions: | | | | | |
| Distributions from capital gains | | | | | |
| Total distributions | – | – | (0.05) | – | – |
| Net increase (decrease) in net asset value | 0.79 | 0.77 | (3.21) | 1.08 | 0.82 |
Net Asset Value at end of period | $ 5.39 | $ 4.60 | $ 3.83 | $ 7.04 | $ 5.96 |
Total Return (%)1 | 17.172 | 20.10 | (45.18) | 17.92 | 16.15 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $10,244 | $4,231 | $ 4,891 | $13,598 | $15,754 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 2.153 | 2.32 | 2.19 | 2.25 | 2.35 |
| After reimbursement of expenses by Adviser (%) | 2.153 | 2.15 | 2.15 | 2.08 | 1.95 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | (1.35)3 | (1.34) | (1.32) | (1.62) | (1.36) |
Portfolio Turnover (%)4 | 613 | 198 | 127 | 109 | 207 |
| 1 | Total return without applicable sales charge. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $ 5.00 | $ 4.11 | $ 7.47 | $ 6.27 | $ 5.84 |
| Income from Investment Operations: | | | | | |
| Net investment income | (0.01) | (0.01) | (0.02) | (0.03) | (0.01) |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.88 | 0.89 | (3.31) | 1.20 | 0.43 |
| Less Distributions: | | | | | |
| Distributions from capital gains | | | | | |
| Total distributions | – | – | (0.05) | – | – |
| Net increase (decrease) in net asset value | 0.88 | 0.89 | (3.36) | 1.20 | 0.43 |
Net Asset Value at end of period | $ 5.88 | $ 5.00 | $ 4.11 | $ 7.47 | $ 6.27 |
Total Return (%)3 | 17.604 | 21.65 | (44.66) | 19.11 | 7.533 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $27,340 | $23,389 | $17,649 | $32,631 | $ 7,830 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.155 | 1.30 | 1.19 | 1.22 | 1.474 |
| After reimbursement of expenses by Adviser (%) | 1.155 | 1.15 | 1.15 | 1.11 | 0.954 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | (0.28)5 | (0.37) | (0.27) | (0.62) | (0.58)4 |
Portfolio Turnover (%)6 | 614 | 198 | 127 | 109 | 2073 |
|
| | Six Months Ended 04/30/10 | | |
| |
| CLASS A | | | | |
Net Asset Value at beginning of period | $ 8.24 | $ 7.29 | $10.36 | $10.00 |
| Income from Investment Operations: | | | | |
| Net investment income | 0.00 | 0.03 | 0.22 | 0.06 |
| Net realized and unrealized gain (loss) on investments | | | | |
| Total from investment operations | 2.00 | 0.97 | (2.85) | 0.36 |
| Less Distributions: | | | | |
| Distributions from investment income | (0.01) | (0.02) | (0.05) | – |
| Distributions from capital gains | | | | |
| Total distributions | (0.01) | (0.02) | (0.22) | – |
| Net increase (decrease) in net asset value | 1.99 | 0.95 | (3.07) | 0.36 |
Net Asset Value at end of period | $10.23 | $ 8.24 | $ 7.29 | $10.36 |
Total Return (%)3 | 24.244 | 13.30 | (28.02) | 3.603 |
| Ratios/Supplemental Data: | | | | |
| Net Assets at end of period (in 000’s) | $2,564 | $1,301 | $ 883 | $6,098 |
| Ratios of expenses to average net assets: | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.505 | 2.85 | 2.18 | 2.614 |
| After reimbursement of expenses by Adviser (%) | 1.505 | 1.50 | 1.50 | 1.504 |
| Ratio of net investment income to average net assets | | | | |
| After reimbursement of expenses by Adviser (%) | 0.065 | 0.50 | 0.56 | 0.714 |
Portfolio Turnover (%)6 | 384 | 21 | 55 | 143 |
| 1 | Commenced investment operations June 30, 2006. | 4 | Not annualized. |
| 2 | Commenced investment operations December 27, 2006. | 5 | Annualized. |
| 3 | Total return without applicable sales charge. | 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| |
| CLASS B | | | | |
Net Asset Value at beginning of period | $ 8.18 | $ 7.24 | $10.29 | $10.00 |
| Income from Investment Operations: | | | | |
| Net investment income | (0.04) | (0.02) | 0.03 | (0.00)5 |
| Net realized and unrealized gain (loss) on investments | | | | |
| Total from investment operations | 1.94 | 0.92 | (2.88) | 0.29 |
Redemption Fees (see Note 2) | – | 0.02 | 0.02 | 0.005 |
| Less Distributions: | – | | | |
| Distributions from capital gains | | | | |
| Total distributions | – | – | (0.17) | – |
| Net increase (decrease) in net asset value | 1.94 | 0.94 | (3.05) | 0.29 |
Net Asset Value at end of period | $10.12 | $ 8.18 | $ 7.24 | $10.29 |
Total Return (%)2 | 23.723 | 12.98 | (28.38) | 2.903 |
| Ratios/Supplemental Data: | | | | |
| Net Assets at end of period (in 000’s) | $238 | $100 | $ 67 | $ 200 |
| Ratios of expenses to average net assets: | | | | |
| Before reimbursement of expenses by Adviser (%) | 2.264 | 11.03 | 7.88 | 11.244 |
| After reimbursement of expenses by Adviser (%) | 2.264 | 2.25 | 2.25 | 2.254 |
| Ratio of net investment income to average net assets | | | | |
| After reimbursement of expenses by Adviser (%) | (0.72)4 | (0.22) | (0.19) | (0.01)4 |
Portfolio Turnover (%)6 | 383 | 21 | 55 | 143 |
| CLASS Y | | | | |
Net Asset Value at beginning of period | $ 8.22 | $ 7.31 | $10.37 | $ 9.82 |
| Income from Investment Operations: | | | | |
| Net investment income | 0.01 | 0.05 | 0.06 | 0.05 |
| Net realized and unrealized gain (loss) on investments | | | | |
| Total from investment operations | 2.01 | 0.97 | (2.82) | 0.55 |
| Less Distributions: | | | | |
| Distributions from net investment income | (0.03) | (0.06) | (0.07) | – |
| Distributions from capital gains | | | | |
| Total distributions | (0.03) | (0.06) | (0.24) | – |
| Net increase (decrease) in net asset value | 1.98 | 0.91 | (3.06) | 0.55 |
Net Asset Value at end of period | $10.20 | $ 8.22 | $ 7.31 | $10.37 |
Total Return (%)3 | 24.443 | 13.53 | (27.71) | 5.603 |
| Ratios/Supplemental Data: | | | | |
| Net Assets at end of period (in 000’s) | $29,697 | $20,389 | $13,453 | $14,949 |
| Ratios of expenses to average net assets: | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.264 | 1.52 | 1.61 | 1.914 |
| After reimbursement of expenses by Adviser (%) | 1.264 | 1.25 | 1.25 | 1.254 |
| Ratio of net investment income to average net assets | | | | |
| After reimbursement of expenses by Adviser (%) | 0.314 | 0.77 | 0.81 | 0.994 |
Portfolio Turnover (%)6 | 383 | 21 | 55 | 143 |
| 1 | Commenced investment operations December 27, 2006. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Amounts represent less than $0.005 per share. |
| 6 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | |
| | | |
| CLASS A | | | | | |
Net Asset Value at beginning of period | $ 9.94 | $ 8.47 | $17.05 | $15.66 | $12.65 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.07 | 0.15 | 0.23 | 0.16 | 0.15 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.31 | 1.84 | (5.83) | 3.08 | 3.16 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.25) | (0.16) | (0.24) | (0.11) | (0.14) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.25) | (0.37) | (2.75) | (1.69) | (0.15) |
| Net increase (decrease) in net asset value | 0.06 | 1.47 | (8.58) | 1.39 | 3.01 |
Net Asset Value at end of period | $10.00 | $ 9.94 | $ 8.47 | $17.05 | $15.66 |
Total Return (%)1 | 3.042 | 22.82 | (40.46) | 21.24 | 25.11 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $23,230 | $23,094 | $19,040 | $52,145 | $78,958 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.603 | 1.73 | 1.93 | 1.89 | 1.87 |
| After reimbursement of expenses by Adviser (%) | 1.603 | 1.60 | 1.60 | 1.60 | 1.60 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.383 | 1.81 | 1.67 | 0.99 | 1.03 |
Portfolio Turnover (%)4 | 292 | 82 | 69 | 79 | 63 |
| CLASS B | | | | | |
Net Asset Value at beginning of period | $ 9.76 | $ 8.33 | $16.79 | $15.45 | $12.48 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.03 | 0.14 | 0.18 | 0.08 | 0.03 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.27 | 1.74 | (5.83) | 2.92 | 3.01 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.17) | (0.10) | (0.12) | – | (0.03) |
| Distributions from capital gains | | | | | |
| Total distributions | (0.17) | (0.31) | (2.63) | (1.58) | (0.04) |
| Net increase (decrease) in net asset value | 0.10 | 1.43 | (8.46) | 1.34 | 2.97 |
Net Asset Value at end of period | $ 9.86 | $ 9.76 | $ 8.33 | $16.79 | $15.45 |
Total Return (%)1 | 2.742 | 21.91 | (40.95) | 20.31 | 24.18 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $4,822 | $5,109 | $ 6,237 | $15,630 | $16,175 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 2.353 | 2.49 | 2.69 | 2.64 | 2.62 |
| After reimbursement of expenses by Adviser (%) | 2.353 | 2.35 | 2.35 | 2.35 | 2.35 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 0.613 | 1.09 | 1.04 | 0.41 | 0.32 |
Portfolio Turnover (%)4 | 292 | 82 | 69 | 79 | 63 |
| 1 | Total return without applicable sales charge. |
| 2 | Not annualized. |
| 3 | Annualized. |
| 4 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Financial Highlights for a Share of Beneficial Interest Outstanding
|
| | Six Months Ended 04/30/10 | | |
| | |
| CLASS Y | | | | | |
Net Asset Value at beginning of period | $ 9.95 | $ 8.48 | $17.08 | $15.68 | $14.57 |
| Income from Investment Operations: | | | | | |
| Net investment income | 0.16 | 0.16 | 0.31 | 0.17 | 0.01 |
| Net realized and unrealized gain (loss) on investments | | | | | |
| Total from investment operations | 0.31 | 1.86 | (5.81) | 3.13 | 1.11 |
| Less Distributions: | | | | | |
| Distributions from net investment income | (0.27) | (0.18) | (0.28) | (0.15) | – |
| Distributions from capital gains | | | | | |
| Total distributions | (0.27) | (0.39) | (2.79) | (1.73) | – |
| Net increase (decrease) in net asset value | 0.04 | 1.47 | (8.60) | 1.40 | 1.11 |
Net Asset Value at end of period | $ 9.99 | $ 9.95 | $ 8.48 | $17.08 | $15.68 |
Total Return (%)2 | 3.193 | 23.25 | (40.41) | 21.59 | 7.623 |
| Ratios/Supplemental Data: | | | | | |
| Net Assets at end of period (in 000’s) | $75,338 | $120,187 | $81,569 | $60,525 | $9,025 |
| Ratios of expenses to average net assets: | | | | | |
| Before reimbursement of expenses by Adviser (%) | 1.354 | 1.47 | 1.68 | 1.66 | 1.724 |
| After reimbursement of expenses by Adviser (%) | 1.354 | 1.35 | 1.35 | 1.35 | 1.354 |
| Ratio of net investment income to average net assets | | | | | |
| After reimbursement of expenses by Adviser (%) | 1.554 | 2.07 | 2.25 | 1.48 | 0.484 |
Portfolio Turnover (%)5 | 293 | 82 | 69 | 79 | 633 |
| 1 | Commenced investment operations June 30, 2006. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Portfolio Turnover is calculated at the fund level and represents the entire fiscal year or period. |
See accompanying Notes to Financial Statements.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
1. ORGANIZATION
The MEMBERS Mutual Funds, a Delaware business trust (the "Trust"), is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified, open-end, management investment company. As of the date of this report, the Trust offers thirteen funds (individually, a "fund," collectively, the "funds"). The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest of the Trust without par value. The Trust has entered into an Investment Advisory Agreement with Madison Asset Management, LLC (the "Investment Adviser"). The Investment Adviser, in turn, has entered into subadvisory agreements with certain subadvisers ("Subadvisers") for the management of the investments of the High Income Fund, Small Cap Fund, and the International Stock Fund. The accompanying financial statements include the Cash Reserves, Bond, High Income, Diversified Income, Equity Income, Large Cap Value, Large Cap Growth, Mid Cap, Small Cap and International Stock Funds (collectively, the "Core Funds"), and the Conservative Allocation, Moderate Allocation, and Aggressive Allocation Funds (collectively, the "Target Allocation Funds"). The Core Funds, excluding the Cash Reserves, Diversified Income and Equity Income Funds, offer three classes of shares: Class A, B and Y, the Target Allocation Funds offer three classes of shares: Class A, B and C. The Cash Reserves Fund and the Diversified Income Fund, offer two classes of shares: Class A and B, and the Equity Income Fund offers two classes of shares: Class A and Y. Each class of shares represents an interest in the assets of the respective fund and has identical voting, dividend, liquidation and other rights, except that each class of shares bears its own distribution fees and servicing fees, if any, and its proportional share of fund level expenses, is subject to its own sales charges, if any, and has exclusive voting rights on matters pertaining to Rule 12b-1 of the 1940 Act as it relates to that class and other class-specific matters.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates. The following is a summary of significant accounting policies consistently followed by each fund in the preparation of its financial statements.
Portfolio Valuation: Securities and other investments are valued as follows: Equity securities and exchange-traded funds ("ETFs") listed on any U.S. or foreign stock exchange or quoted on the National Association of Securities Dealers Automated Quotation System ("NASDAQ") are valued at the last quoted sale price or official closing price on that exchange or NASDAQ on the valuation day (provided that, for securities traded on NASDAQ, the Funds utilize the NASDAQ Official Closing Price). If no sale occurs, (a) equities traded on a U.S. exchange or on NASDAQ are valued at the mean between the closing bid and closing asked prices and (b) equity securities traded on a foreign exchange are valued at the official bid price. Debt securities purchased with a remaining maturity of 61 days or more are valued by a pricing service selected by the Trust or on the basis of dealer-supplied quotations. Investments in shares of open-end mutual funds, including money market funds, are valued at their daily net asset value ("NAV") which is calculated as of the close of regular trading on the New York Stock Exchange (usually 3:00 p.m. Central Time) on each day on which the New York Stock Exchange is open for business. NAV per share is determined by dividing each fund’s total net assets by the number of shares of such fund outstanding at the time of calculation. Total net assets are determined by adding the total current value of portfolio securities, cash, receivables, and other assets and subtracting liabilities. Because the assets of the Target Allocation Funds consist primarily of shares of underlying funds, the NAV of each Target Allocation Fund is determined based on the NAVs of the underlying funds. Short-term instruments having maturities of 60 days or less and all securities in the Cash Reserves Fund are valued on an amortized cost basis, which approximates market value.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
Over-the-counter securities not listed or traded on NASDAQ are valued at the last sale price on the valuation day. If no sale occurs on the valuation day, an over-the-counter security is valued at the mean between the last bid and asked prices. Over-the-counter options are valued based upon prices provided by market makers in such securities or dealers in such currencies. Exchange traded options are valued at the last sale or bid price on the exchange where such option contract is principally traded except for the Equity Income Fund where they are valued at the mean of the best bid and best ask prices across all option exchanges. Financial futures contracts generally are valued at the settlement price established by the exchange(s) on which the contracts are primarily traded. The Funds’ Pricing Committee (the "Committee") shall estimate the fair value of futures positions affected by the daily limit by using its valuation procedures for determining fair value, when necessary. Spot and forward foreign currency exchange contracts are valued based on quotations supplied by dealers in such contracts. Overnight repurchase agreements are valued at cost, and term repurchase agreements (i.e., those whose maturity exceeds seven days), swaps, caps, collars and floors are valued at the average of the closing bids obtained daily from at least one dealer.
Through the end of this reporting period, the value of all assets and liabilities expressed in foreign currencies was converted into U.S. dollar values using the then current exchange rate as of Noon Eastern Standard Time on each day that the New York Stock Exchange was open for business. Effective May 10, 2010, the values will be converted using the then current exchange rate at the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Standard Time).
All other securities for which either quotations are not readily available, no other sales have occurred, or in the Investment Adviser’s opinion, do not reflect the current market value, are appraised at their fair values as determined in good faith by the Committee and under the general supervision of the Board of Trustees. When fair value pricing of securities is employed, the prices of securities used by the Funds to calculate NAV may differ from market quotations or official closing prices. Because the Target Allocation Funds primarily invest in underlying funds, government securities and short-term paper, it is not anticipated that the Investment Adviser will need to "fair" value any of the investments of these funds. However, an underlying fund may need to "fair" value one or more of its investments, which may, in turn, require a Target Allocation Fund to do the same because of delays in obtaining the underlying fund’s NAV.
A fund’s investments (or underlying fund) will be valued at fair value if, in the judgment of the Committee, an event impacting the value of an investment occurred between the closing time of a security’s primary market or exchange (for example, a foreign exchange or market) and the time the fund’s share price is calculated at as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Standard Time). Significant events may include, but are not limited to, the following: (1) significant fluctuations in domestic markets, foreign markets or foreign currencies; (2) occurrences not directly tied to the securities markets such as natural disasters, armed conflicts or significant government actions; and (3) major announcements affecting a single issuer or an entire market or market sector. In responding to a significant event, the Committee would determine the fair value of affected securities considering factors including, but not limited to: fundamental analytical data relating to the investment; the nature and duration of any restrictions on the disposition of the investment; and the forces influencing the market(s) in which the investment is purchased or sold. The Committee may rely on an independent fair valuation service to adjust the valuations of foreign equity securities based on specific market-movement parameters established by the Committee and approved by the Funds.
Security Transactions and Investment Income: Security transactions are accounted for on a trade date basis. Net realized gains or losses on sales are determined by the identified cost method. Interest income is recorded on an accrual basis. Dividend income is recorded on ex-dividend date. Amortization and accretion are recorded on the effective yield method.
Federal Income Taxes: It is each fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986 applicable to regulated investment companies and to distribute substantially all it’s taxable income to its shareholders. Accordingly, no provisions for federal income taxes are recorded in the accompanying financial statements.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
The funds have not recorded any liabilities for material unrecognized tax benefits as of April 30, 2010. It is the funds’ policy to recognize accrued interest and penalties related to uncertain tax benefits in income taxes, as appropriate. Tax years that remain open to examination by major tax jurisdictions include tax years ended October 31, 2006 through October 31, 2009.
Expenses: Expenses that are directly related to one fund are charged directly to that fund. Other operating expenses are prorated to the funds on the basis of relative net assets. Class-specific expenses are borne by that class.
Classes: Income and realized and unrealized gains/losses are allocated to the respective classes on the basis of relative net assets.
Repurchase Agreements: Each fund may engage in repurchase agreements. In a repurchase agreement, a security is purchased for a relatively short period (usually not more than 7 days) subject to the obligation to sell it back to the issuer at a fixed time and price plus accrued interest. The funds will enter into repurchase agreements only with members of the Federal Reserve System and with "primary dealers" in U.S. Government securities. As of April 30, 2010, only the Equity Income Fund had open repurchase agreements.
The Trust has established a procedure providing that the securities serving as collateral for each repurchase agreement must be delivered to the funds’ custodian either physically or in book-entry form and that the collateral must be marked to market daily to ensure that each repurchase agreement is fully collateralized at all times. In the event of bankruptcy or other default by a seller of a repurchase agreement, a fund could experience one of the following: delays in liquidating the underlying securities during the period in which the fund seeks to enforce its rights thereto, possible subnormal levels of income, declines in value of the underlying securities, or lack of access to income during this period and the expense of enforcing its rights.
Foreign Currency Transactions: The books and records are maintained in U.S. dollars. Foreign currency denominated transactions (i.e., market value of investment securities, assets and liabilities, purchases and sales of investment securities, and income and expenses) are translated into U.S. dollars at the current rate of exchange.
Each fund, except the Cash Reserves Fund, reports certain foreign currency-related transactions as components of realized gains or losses for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. Net realized gains of $496,085 are included in the Statements of Operations under the heading "Net realized loss on investments" for the International Stock Fund. The Cash Reserves Fund can only invest in U.S. dollar-denominated foreign money market securities.
The funds do not isolate the portion of gains and losses on investments in securities that is due to changes in the foreign exchange rates from that which is due to change in market prices of securities. Such amounts are categorized as gain or loss on investments for financial reporting purposes.
Forward Foreign Currency Exchange Contracts: Each fund, except the Cash Reserves Fund, may purchase and sell forward foreign currency exchange contracts for defensive or hedging purposes. When entering into forward foreign currency exchange contracts, the funds agree to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily. The funds’ net assets reflect unrealized gains or losses on the contracts as measured by the difference between the forward foreign currency exchange rates at the dates of entry into the contracts and the forward rates at the reporting date. The funds realize a gain or a loss at the time the forward foreign currency exchange contracts are settled or closed out with an offsetting contract. Realized and unrealized gains and losses are included in the Statements of Operations. As of April 30, 2010, none of the funds had open forward foreign currency exchange contracts.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
If a fund enters into a forward foreign currency exchange contract to buy foreign currency for any purpose, the fund will be required to place cash or other liquid assets in a segregated account with the fund’s custodian in an amount equal to the value of the fund’s total assets committed to the consummation of the forward contract. If the value of the securities in the segregated account declines, additional cash or securities will be placed in the segregated account so that the value of the account will equal the amount of the fund’s commitment with respect to the contract.
Futures Contracts: Each fund, except the Cash Reserves Fund, may purchase and sell futures contracts and purchase and write options on futures contracts. The funds will engage in futures contracts or related options transactions to hedge certain market positions. Upon entering into a futures contract, the fund is required to pledge to the broker an amount of cash, U.S. Government securities or other assets, equal to a certain percentage of the contract (initial margin deposit). Subsequent payments, known as "variation margin," are made or received by the fund each day, depending on the daily fluctuations in the fair value of the futures contract. When a fund enters into a futures contract, the fund segregates cash or other liquid securities, of any type or maturity, equal in value to the fund’s commitment. The fund recognizes a gain or loss equal to the daily change in the value of the futures contracts. Should market conditions move unexpectedly, the fund may not achieve the anticipated benefits of the futures contracts and may realize a loss. As of April 30, 2010, none of the Funds had open futures contracts.
Delayed Delivery Securities: Each fund may purchase securities on a when-issued or delayed delivery basis. "When-issued" refers to securities whose terms are available and for which a market exists, but that have not been issued. For when-issued or delayed delivery transactions, no payment is made until delivery date, which is typically longer than the normal course of settlement, and often a month or more after the purchase. When a fund enters into an agreement to purchase securities on a when-issued or delayed delivery basis, the fund segregates cash or other liquid securities, of any type or maturity, equal in value to the fund’s commitment. Losses may arise due to changes in the market value of the underlying securities, if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic or other factors. As of April 30, 2010, the High Income Fund had entered into such transactions, the market values of which are identified in the fund’s Portfolio of Investments.
Reclassification Adjustments: Paid-in capital, undistributed net investment income, and accumulated net realized gain (loss) have been adjusted in the Statements of Assets and Liabilities for permanent book-tax differences for all funds. Differences primarily relate to the tax treatment of net operating losses, paydown gains and losses, foreign currency gains and losses, and distributions from real estate investment trusts and passive foreign investment companies.
Redemption Fees: The Small Cap and the International Stock Funds will deduct a fee of 2% from redemption proceeds on Class A and Class B shares held 30 calendar days or less. Redemption fees are treated as additional paid-in capital to the fund from which the shares are redeemed and are designed to help offset any costs associated with short-term shareholder trading.
Fair Value Measurements: Each fund has adopted the Financial Accounting Standards Board ("FASB") guidance on fair value measurements. Fair value is defined as the price that each fund would receive upon selling an investment in, or pay to transfer a liability in, an orderly transaction with an independent buyer in the principal or most advantageous market of the investment or liability. A three-tier hierarchy is used to maximize the use of observable market data "inputs" and minimize the use of unobservable "inputs" and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique). Inputs may be observable or unobservable.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed on the next page:
Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
In April 2009, the FASB also issued guidance on how to determine the fair value of assets and liabilities when the volume and level of activity for the asset/liability have significantly decreased as well as guidance on identifying circumstances that indicate a transaction is not orderly.
The valuation techniques used by the funds to measure fair value for the period ended April 30, 2010 maximized the use of observable inputs and minimized the use of unobservable inputs. The funds utilized the following fair value techniques: multi-dimensional relational pricing model and option adjusted spread pricing; the funds estimated the price that would have prevailed in a liquid market for an international equity security given information available at the time of evaluation. As of April 30, 2010, only the International Stock Fund held securities deemed as a Level 3.
The following is a summary of the inputs used as of April 30, 2010 in valuing the funds’ investments carried at market value:
| Fund | Quoted Prices in Active Markets for Identical Investments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |
Conservative Allocation1 | $ 42,972,383 | $ – | $ – | $ 42,972,383 |
Moderate Allocation1 | 102,514,126 | – | – | 102,514,126 |
Aggressive Allocation1 | 35,721,268 | – | – | 35,721,268 |
Cash Reserves2 | 521,460 | 14,510,665 | – | 15,032,125 |
| Bond | | | | |
| Asset Backed | – | 2,249,808 | – | 2,249,808 |
| Corporate Notes and Bonds | – | 35,970,127 | – | 35,970,127 |
| Mortgage Backed | – | 35,658,511 | – | 35,658,511 |
| U.S. Government and Agency Obligations | – | 120,710,061 | – | 120,710,061 |
| Investment Companies | | | – | |
| | 9,625,598 | 203,239,552 | – | 212,865,150 |
| High Income | | | | |
| Corporate Notes and Bonds | – | 116,144,769 | – | 116,144,769 |
| Investment Companies | | | | |
| | 4,651,664 | 116,144,769 | – | 120,766,433 |
| Diversified Income | | | | |
| Common Stocks | 43,793,215 | – | – | 43,793,215 |
| Asset Backed | – | 1,142,610 | – | 1,142,610 |
| Corporate Notes and Bonds | – | 18,573,297 | – | 18,573,297 |
| Mortgage Backed | – | 14,528,617 | – | 14,528,617 |
| U.S. Government and Agency Obligations | – | 12,868,868 | – | 12,868,868 |
| Investment Companies | | | | |
| | 44,705,202 | 47,113,392 | – | 91,818,594 |
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
| Fund | Quoted Prices in Active Markets for Identical Investments (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |
| Equity Income | | | | |
| Common Stocks | $ 26,000,944 | $ – | $ – | $ 26,000,944 |
| Repurchase Agreement | | | | |
| | 26,000,944 | 10,068,160 | – | 36,069,104 |
Large Cap Value1 | 165,589,545 | – | – | 165,589,545 |
| Large Cap Growth | | | | |
| Common Stocks | 154,947,570 | – | – | 154,947,570 |
| Investment Companies | | | | |
| | 160,205,647 | – | – | 160,205,647 |
| Mid Cap | | – | – | |
| Common Stocks | 77,630,708 | – | – | 77,630,708 |
| Certificate of Deposit | – | 1,230,806 | – | 1,230,806 |
| Investment Companies | | | | |
| | 81,392,427 | 1,230,806 | – | 82,623,233 |
Small Cap1 | 32,537,896 | – | – | 32,537,896 |
International Stock3 | | | | |
| Common Stocks | | | | |
Australia3 | – | 1,033,203 | – | 1,033,203 |
| Belgium | – | 2,111,190 | – | 2,111,190 |
| Brazil | – | 3,028,500 | – | 3,028,500 |
| Canada | – | 3,006,610 | – | 3,006,610 |
| China | – | 934,457 | – | 934,457 |
| Czech Republic | – | 788,272 | – | 788,272 |
| Denmark | – | 1,237,914 | – | 1,237,914 |
| France | – | 8,036,137 | – | 8,036,137 |
| Germany | – | 4,324,233 | – | 4,324,233 |
| Hong Kong | – | 2,994,948 | – | 2,994,948 |
| India | – | 761,117 | – | 761,117 |
| Ireland | – | 1,722,151 | – | 1,722,151 |
| Italy | – | 1,435,631 | – | 1,435,631 |
| Japan | – | 20,996,990 | – | 20,996,990 |
| Korea | – | 830,341 | – | 830,341 |
| Mexico | – | 750,158 | – | 750,158 |
| Netherlands | – | 1,933,877 | – | 1,933,877 |
| Norway | – | 1,367,600 | – | 1,367,600 |
| Russia | – | 775,850 | – | 775,850 |
| Singapore | – | 935,253 | – | 935,253 |
| Spain | – | 823,988 | – | 823,988 |
| Sweden | – | 2,222,216 | – | 2,222,216 |
| Switzerland | – | 9,037,304 | – | 9,037,304 |
| Turkey | – | 918,650 | – | 918,650 |
| United Kingdom | – | 27,367,967 | – | 27,367,967 |
| Investment Companies | | | | |
| | $ 2,841,502 | $ 99,374,557 | $ – | $102,216,059 |
1 At April 30, 2010, all investments are Level 1, see respective Portfolio of Investments. 2 At April 30, 2010, all Level 2 securities held are Short Term Investments, see respective Portfolio of Investments. 3 At April 30, 2010, all Level 3 securities held were valued at $0, see respective Portfolio of Investments. Additionally, Level 3 securities were also valued at zero on October 31, 2009 with no activity or changes in valuation during the six-months ended April 30, 2010. |
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
Derivatives: In March 2008, the FASB issued guidance intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge fund items are accounted for, and c) how derivative instruments and related hedge items affect a fund’s financial position, results of operations and cash flows. This guidance is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The funds adopted this guidance effective November 1, 2009 with the inception of the Equity Income Fund.
The following table presents the types of derivatives in the Equity Income Fund (i.e., MENAX) by location as presented on the Statement of Assets and Liabilities as of April 30, 2010:
Statement of Asset & Liability Presentation of Fair Values of Derivative Instruments |
| | | |
Derivatives not accounted for as hedging instruments | Statement of Assets and Liabilities Location | | Statement of Assets | |
| Equity contracts | – | -- | Options written | $1,486,323 |
The following table presents the effect of Derivative Instruments on the Statement of Operations for the period ended April 30, 2010:
Derivatives not accounted for as hedging instruments | Realized Gain on Derivatives: | Change in Unrealized Depreciation on Derivatives |
| Equity contracts | $289,568 | ($174,055) |
Management has determined that there is no impact on the financial statements of the other funds held in the Trust as they currently do not hold derivative financial instruments.
New Accounting Pronouncements: In January, 2010, amended guidance was issued by FASB for fair value measurement disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. It also clarifies existing fair value disclosures about the level of disaggregation, inputs and valuation techniques used to measure fair value. The amended guidance is effective for financial statements for fiscal years and interim periods beginning after December 15, 2009, except for disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements, which are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Earlier adoption is permitted. In the period of initial adoption, the funds will not be required to provide the amended disclosures for any previous periods presented for comparative purposes. However, those disclosures are required for periods ending after the initial adoption. The impact of this guidance on the funds’ financial statements and disclosures, if any, is currently being assessed.
3. ADVISORY, ADMINISTRATION AND DISTRIBUTION AGREEMENTS
Advisory Agreement. For its investment advisory services to the Funds, the Investment Adviser is entitled to receive a fee, which is computed daily and paid monthly, at an annualized percentage rate of the average daily value of the net assets of each fund as follows: 0.20% for the Conservative, Moderate and Aggressive Allocation Funds (collectively, the "Target Allocation Funds") ; 0.40% for the Cash Reserves Fund; 0.50% for the Bond Fund; 0.55% for the High Income Fund; 0.65% for the Diversified Income Fund; 0.85% for the Equity Income Fund; 0.55% for the Large Cap Value Fund; 0.75% for the Large Cap Growth Fund; 0.75% for the Mid Cap Fund; 1.00% for the Small Cap Fund; and 1.05% for the International Stock Fund. Except for the Target Allocations Funds and the Equity Income Fund, each fund’s management fee will be reduced by 0.05% on assets exceeding $500 million, and by another 0.05% on assets exceeding $1 billion. The Investment Adviser is solely
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
responsible for the payment of all fees to the Subadvisers. The Subadvisers for the funds at April 30, 2010, are Shenkman Capital Management, Inc. for the High Income Fund, Wellington Management Company, LLP for the Small Cap Fund, and Lazard Asset Management LLC for the International Stock Fund.
The Investment Adviser may from time to time voluntarily agree to waive a portion of its fees or expenses related to the funds. In that regard, the Investment Adviser waived a portion of management fees on the Cash Reserves Fund Class A Shares and Class B Shares for the purpose of maintaining a one–day yield of zero. The amount of the daily waiver is equal to the amount required to maintain a minimum daily distribution rate of zero. For the six–month period ended April 30, 2010, the waivers totaled $26,734 for Class A Shares and $5,139 for Class B Shares and are reflected as fees waived in the accompanying Statement of Operations.
Services Agreement. The Investment Adviser provides or arranges for each fund to have all of the necessary operational and support services it needs for a fee. These fees are computed daily and paid monthly, at an annualized percentage rate of the average daily value of the net assets of each fund as follows: 0.25% for each of the Conservative, Moderate and Aggressive Allocation Funds; 0.15% for the Cash Reserves Fund; 0.15% for the Bond Fund; 0.20% for the High Income Fund; 0.20% for the Diversified Income Fund; 0.15% for the Equity Income Fund; 0.36% for the Large Cap Value Fund; 0.20% for the Large Cap Growth Fund; 0.40% for the Mid Cap Fund; 0.25% for the Small Cap Fund; and 0.30% for the International Stock Fund. While the Funds pay the expenses of the Funds’ Independent Trustees and independent auditors directly (the "Direct Fees"), these expenses come out of the service fee so that they do not represent an additional expense to the funds above and beyond the service fee.
The Investment Adviser may from time to time voluntarily agree to waive a portion of its fees or expenses related to the funds. In that regard, the Investment Adviser waived a portion of service agreement fees on the Cash Reserves Fund Class A Shares and Class B Shares for the purpose of maintaining a one–day yield of zero. The amount of the daily waiver is equal to the amount required to maintain a minimum daily distribution rate of zero. For the six–month period ended April 30, 2010, the waivers totaled $1,744 for Class A Shares and $333 for Class B Shares and are reflected as fees waived in the accompanying Statement of Operations.
Distribution Agreement. Mosaic Funds Distributor, LLC ("MFD") serves as distributor of the funds. The Trust adopted distribution and/or service plans (the "Plans") with respect to the Trust’s Class A, B, and C shares pursuant to Rule 12b–1 under the 1940 Act. Under the Plans, the Trust will pay service fees to MFD for Class A, Class B, and Class C shares at an aggregate annual rate of 0.25% of each fund’s daily net assets attributable to the respective class of shares for all funds except the Cash Reserves Fund. The Trust will also pay distribution fees to MFD for Class B and Class C shares at an aggregate annual rate of 0.75% of each fund’s daily net assets attributable to their respective classes. The distribution fees are used to reimburse MFD for its distribution expenses with respect to Class B and Class C only, including but not limited to: (1) initial and ongoing sales compensation to selling brokers and others engaged in the sale of fund shares, (2) marketing, promotional and overhead expenses incurred in connection with the distribution of fund shares, and (3) interest expenses on unreimbursed distribution expenses. The service fees are used by MFD to compensate selling brokers and others for providing personal and account maintenance services to shareholders. Fees incurred by the funds under the Plans are detailed in the statement of operations.
Front-end sales charges and contingent deferred sales charges ("CDSC") do not represent expenses of the funds. Rather, they are deducted from the proceeds of sales of Fund shares prior to investment or from redemption proceeds prior to remittance, as applicable, and paid to MFD. MFD, in turn, uses a portion of these fees to pay financial advisors who sell fund shares, as disclosed in the prospectus. The sales charges retained by MFD from the sales of shares (Class A shares) and the CDSC retained by MFD on the redemption of shares (Class A, B and C shares) for the period November 1, 2009 through April 30, 2010, were as follows:
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
| | | | | | | |
| Conservative Allocation | $118,531 | $ 8,083 | $1,757 | | Equity Income | $62,806 | $ – |
| Moderate Allocation | 275,951 | 19,297 | 714 | | Large Cap Value | 23,442 | 5,015 |
| Aggressive Allocation | 121,210 | 6,336 | 31 | | Large Cap Growth | 23,435 | 4,754 |
| Cash Reserves | – | 7,995 | – | | Mid Cap | 18,143, | 5,143 |
| Bond | 21,436 | 4,294 | – | | Small Cap | 3,759 | 82 |
| High Income | 39,997 | 1,253 | – | | International Stock | 22,926 | 3,658 |
| Diversified Income | 35,299 | 5,210 | – | | | | |
The distributor may from time to time voluntary agree to waive a portion of its fees or expenses related to the funds. In that regard, the distributor waived a portion of 12b-1 fees on the Cash Reserves Fund Class B Shares for the purpose of maintaining a one-day yield of zero. The amount of the daily waiver is equal to the amount required to maintain a minimum daily distribution rate of zero. For the six-month period ended April 30, 2010, the waivers totaled $9,639 and are reflected as fees waived in the accompanying Statement of Operations.
Officers and Trustees. Certain officers and trustees of the funds are also officers of the Investment Adviser. The funds do not compensate their officers or affiliated trustees. Unaffiliated trustees receive from the Trust an attendance fee for each Board or Committee meeting attended, with additional remuneration paid to the "lead" trustee and audit committee chair.
4. DIVIDENDS FROM NET INCOME AND DISTRIBUTIONS OF CAPITAL GAINS
With respect to dividends from net investment income, the Cash Reserves Fund declares dividends, if any, daily and reinvests monthly. The Bond Fund, High Income Fund and Diversified Income Fund declare and reinvest dividends, if any, monthly. The Conservative Allocation and Equity Income Funds declare and reinvest dividends, if any, quarterly. The Moderate Allocation, Aggressive Allocation, Large Cap Value Fund, Large Cap Growth Fund, Mid Cap Fund, Small Cap Fund, and the International Stock Fund declare and reinvest dividends, if any, annually. The funds distribute net realized gains from investment transactions, if any, to shareholders annually.
Income and capital gain distributions, if any, are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Taxable distributions from income and realized capital gains in the Funds differ from book amounts earned during the period due to differences in the timing of capital gains recognition, and due to the reclassification of certain gains or losses from capital to income. Dividends from net investment income are determined on a class level. Capital gains are determined on a fund level.
5. SECURITIES TRANSACTIONS
For the six months ended April 30, 2010, aggregate cost of purchases and proceeds from sales of securities, other than short–term investments, were as follows:
| | U.S. Government Securities | Other Investment Securities |
| | | | |
| Conservative Allocation | $ – | $ – | $ 14,751,151 | $ 11,247,591 |
| Moderate Allocation | – | – | 37,370,060 | 31,594,073 |
| Aggressive Allocation | – | – | 16,524,627 | 14,277,953 |
| Bond | 16,804,511 | 4,150,630 | 1,470,860 | 2,503,500 |
| High Income | – | – | 35,384,612 | 28,706,475 |
| Diversified Income | 188,723 | 1,391,452 | 9,309,489 | 9,019,381 |
| Equity Income | – | – | 29,666,205 | 4,867,650 |
| Large Cap Value | – | – | 44,217,973 | 36,842,859 |
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
| | U.S. Government Securities | Other Investment Securities |
| | | | |
| Large Cap Growth | – | – | 61,104,634 | 78,682,802 |
| Mid Cap | – | – | 45,433,053 | 50,233,493 |
| Small Cap | – | – | 11,412,757 | 22,946,337 |
| International Stock | – | – | 31,436,544 | 80,935,175 |
6. COVERED CALL OPTIONS
The Equity Income Fund will pursue its primary objective by employing an option strategy of writing (selling) covered call options on common stocks. The number of call options the fund can write (sell) is limited by the amount of equity securities the fund holds in its portfolio. The fund will not write (sell) "naked" or uncovered call options. The fund seeks to produce a high level of current income and gains generated from option writing premiums and, to a lesser extent, from dividends.
Transactions in option contracts during the period ended April 30, 2010 were as follows:
| | | |
| Options outstanding, beginning of period | – | $ – |
| Options written during the period | 10,000 | 1,935,817 |
| Options expired during the period | (680) | (127,662) |
| Options closed during the period | (1,322) | (270,396) |
| Options assigned during the period | | |
| Options outstanding, end of period | | |
7. FOREIGN SECURITIES
Each fund may invest in foreign securities, however, the Cash Reserves Fund is limited to U.S. dollar–denominated foreign money market securities. Foreign securities refer to securities that are: (1) issued by companies organized outside the U.S. or whose principal operations are outside the U.S., (2) issued by foreign governments or their agencies or instrumentalities, (3) principally traded outside the U.S., or (4) quoted or denominated in a foreign currency. Foreign securities include American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs"), Swedish Depositary Receipts ("SDRs") and foreign money market securities. Dollar–denominated securities that are part of the Merrill Lynch U.S. Domestic Master Index are not considered a foreign security.
Certain of the funds have reclaim receivable balances, in which the funds are due a reclaim on the taxes that have been paid to some foreign jurisdictions. The values of all reclaims are not significant for any of the funds and are reflected in Other Assets on the Statement of Assets and Liabilities. On a periodic basis, these receivables are reviewed to ensure the current receivable balance is reflective of the amount deemed to be collectible.
8. SECURITIES LENDING
Each fund, except the Target Allocation, Cash Reserves, Small Cap and Equity Income Funds, entered into a Securities Lending Agreement (the "Agreement") with State Street Bank and Trust Company ("State Street"). Under the terms of the Agreement, the funds may lend portfolio securities to qualified borrowers in order to earn additional income. The Agreement requires that loans are collateralized at all times by cash or other liquid assets at least equal to 102% of the value of the securities, which is determined on a daily basis. At April 30, 2010, none of the funds had securities out on loan.
Amounts earned as interest on investments of cash collateral, net of rebates and fees, if any, are included in the Statement of Operations.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
The primary risk associated with securities lending is if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the funds could experience delays and costs in recovering securities loaned or in gaining access to the collateral.
The funds did not transact in securities lending for the six-month period ended April 30, 2010.
9. TAX INFORMATION
For federal income tax purposes, the funds listed below have capital loss carryovers as of October 31, 2009, which are available to offset future capital gains, if any:
| | | | | | | | |
| Conservative Allocation | $ – | $ – | $ – | $ – | $ – | $ – | $ 823,887 | $ 1,619,779 |
| Moderate Allocation | – | – | – | – | – | – | 4,121,648 | 6,462,247 |
| Aggressive Allocation | – | – | – | – | – | – | 1,431,110 | 2,049,055 |
| Bond | – | – | 85,623 | 65,261 | 362,802 | 57,909 | – | 836,574 |
| High Income | 2,445,850 | 614,259 | – | – | – | 72,549 | 4,653,350 | 2,183,308 |
| Diversified Income | – | – | – | – | – | – | 3,638,247 | 14,441,031 |
| Large Cap Value | – | – | – | – | – | – | 9,531,689 | 20,011,738 |
| Large Cap Growth | – | 1,255,080 | – | – | – | – | 15,286,497 | 18,608,339 |
| Mid Cap | – | – | – | – | – | – | 5,486,237 | 8,971,382 |
| Small Cap | – | – | – | – | – | – | 1,362,749 | 1,697,646 |
| International Stock | – | – | – | – | – | – | – | 22,902,552 |
At April 30, 2010, the aggregate gross unrealized appreciation (depreciation) and net unrealized appreciation (depreciation) for all securities as computed on a federal income tax basis for each fund were as follows:
| | | |
| Conservative Allocation | $ 409,206 | $ 76,944 | $ 332,262 |
| Moderate Allocation | 2,399,542 | 838,846 | 1,560,696 |
| Aggressive Allocation | 983,340 | 252,198 | 731,142 |
| Bond | 7,629,462 | 845,106 | 6,784,356 |
| High Income | 8,690,790 | 103,048 | 8,587,742 |
| Diversified Income | 7,966,780 | 2,750,910 | 5,215,870 |
| Equity Income | 1,417,189 | 469,853 | 947,336 |
| Large Cap Value | 16,790,668 | 5,001,063 | 11,789,605 |
| Large Cap Growth | 23,964,685 | 861,831 | 23,102,854 |
| Mid Cap | 11,739,673 | 100,836 | 11,638,837 |
| Small Cap | 6,429,888 | 331,935 | 6,097,953 |
| International Stock | 11,755,533 | 1,633,571 | 10,121,962 |
The differences between cost amounts for book purposes and tax purposes are primarily due to the tax deferral of losses.
10. CONCENTRATION OF RISK
Investing in certain financial instruments, including forward foreign currency contracts and futures contracts, involves certain risks, other than that reflected in the Statements of Assets and Liabilities. Risks associated with these instruments include potential for an illiquid secondary market for the instruments or inability of counterparties to perform under the terms of the contracts, changes in the value of foreign currency relative to the U.S. dollar and financial statement volatility resulting from an imperfect correlation between the movements in the prices of the instruments and the prices of the underlying securities and interest rates being hedged. The High Income Fund, Mid Cap Fund, and International Stock Fund enter into these contracts primarily to protect these funds from adverse currency movements.
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
Investing in foreign securities involves certain risks not necessarily found in U.S. markets. These include risks associated with adverse changes in economic, political, regulatory and other conditions, changes in currency exchange rates, exchange control regulations, expropriation of assets or nationalization, imposition of withholding taxes on dividend or interest payments or capital gains, and possible difficulty in obtaining and enforcing judgments against foreign entities. Further, issuers of foreign securities are subject to different, and often less comprehensive, accounting, reporting and disclosure requirements than domestic issuers.
The High Income Fund invests in securities offering high current income which generally will include bonds in the below investment grade categories of recognized rating agencies (so-called "junk bonds"). These securities generally involve more credit risk than securities in the higher rating categories. In addition, the trading market for high yield securities may be relatively less liquid than the market for higher-rated securities. The fund generally invests at least 80% of its assets in high yield securities.
The Equity Income Fund invests in options on securities. As the writer of a covered call option, the fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call but has retained the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.
The Target Allocation Funds are structured as fund of funds, meaning that they invest primarily in the shares of other registered investment companies (the "underlying funds"), including ETFs. Thus, each fund’s investment performance and its ability to achieve its investment goal are directly related to the performance of the underlying funds in which it invests; and the underlying fund’s performance, in turn, depends on the particular securities in which that underlying fund invests and the expenses of that fund. Accordingly, the Target Allocation Funds are subject to the risks of the underlying funds in direct proportion to the allocation of their respective assets among the underlying funds.
Additionally, the Target Allocation Funds are subject to asset allocation risk and manager risk. Manager risk (i.e., fund selection risk) is the risk that the fund(s) selected to fulfill a particular asset class under performs their peer. Asset allocation risk is the risk that the allocation of the fund’s assets among the various asset classes and market segments will cause the fund to under perform other funds with a similar investment objective.
11. CAPITAL SHARES AND AFFILIATED OWNERSHIP
The Target Allocation Funds invest in underlying funds, of which certain underlying funds, may be deemed to be under common control because of the same or affiliated investment adviser and membership in a common family of investment companies (the "affiliated underlying funds’’). A summary of the transactions with each affiliated underlying fund during the year ended April 30, 2010 follows:
| Balance of Shares Held at 10/31/2009 | | | Balance of Shares Held at 4/30/2010 | | | |
| Conservative Allocation Fund | | | | | | | |
| Madison Mosaic Institutional Bond Fund | – | 350,948 | – | 350,948 | $ 3,800,770 | $ – | $ 15,705 |
| MEMBERS Bond Fund Class Y | 934,413 | 39,193 | 5,620 | 967,986 | 9,796,019 | 863 | 131,737 |
| MEMBERS High Income Fund Class Y | 709,172 | 50,503 | 19,006 | 740,669 | 5,110,616 | (5,313) | 194,705 |
| MEMBERS International Stock Fund Class Y | 323,539 | 12,859 | 128,767 | 207,631 | 2,076,313 | (314,619) | 59,975 |
MEMBERS Equity Income Fund, Class Y1 | | 110,189 | 557 | 109,632 | 1,148,948 | (37) | – |
MEMBERS Mutual Funds | April 30, 2010
Notes to Financial Statements (unaudited)
| Balance of Shares Held at 10/31/2009 | | | Balance of Shares Held at 4/30/2010 | | | |
| Conservative Allocation Fund - cont. | | | | | | | |
MEMBERS Large Cap Growth Fund Class Y1 | 264,567 | 11,240 | 41,407 | 234,400 | 3,504,276 | (96,552) | 17,580 |
| MEMBERS Large Cap Value Fund Class Y | 260,669 | 37,195 | 2,365 | 296,499 | 3,489,792 | (11,467) | 46,246 |
| Totals | | | | | | | |
| Moderate Allocation Fund | | | | | | | |
| Madison Mosaic Institutional Bond Fund | – | 441,727 | – | 441,727 | $ 4,783,902 | $ – | $ 19,767 |
| MEMBERS Bond Fund Class Y | 1,304,545 | 29,612 | 5,232 | 1,328,925 | 13,448,718 | 1,117 | 180,986 |
| MEMBERS High Income Fund Class Y | 1,236,623 | 61,556 | 5,394 | 1,292,785 | 8,920,213 | (4,667) | 335,847 |
| MEMBERS International Stock Fund Class Y | 1,399,914 | 29,959 | 626,140 | 803,733 | 8,037,330 | (1,796,653) | 217,652 |
| Madison Mosaic Disciplined Equity Fund | – | 440,945 | – | 440,945 | 5,397,173 | – | 5,379 |
MEMBERS Equity Income Fund Class Y1 | – | 352,642 | 1,093 | 351,549 | 3,684,238 | (20) | – |
| MEMBERS Large Cap Growth Fund Class Y | 855,788 | 42,320 | 215,381 | 682,727 | 10,206,774 | (411,553) | 49,799 |
| MEMBERS Large Cap Value Fund Class Y | 746,352 | 124,620 | 7,371 | 863,601 | 10,164,588 | (39,473) | 129,582 |
MEMBERS Mid Cap Fund Class Y1 | 500,218 | 3,504 | 1,925 | 501,797 | 2,950,566 | (4,311) | – |
| MEMBERS Small Cap Fund Class Y | 302,264 | 227,094 | 161,033 | 368,325 | 3,756,917 | (262,304) | 9,756 |
| Totals | | | | | | | |
| Aggressive Allocation Fund | | | | | | | |
| MEMBERS Bond Fund Class Y | 95,067 | 35,743 | 708 | 130,102 | $ 1,316,631 | $ 1 | $ 15,427 |
| MEMBERS High Income Fund Class Y | 276,834 | 27,020 | 1,898 | 301,956 | 2,083,498 | (11) | 77,937 |
| MEMBERS International Stock Fund Class Y | 573,860 | 16,578 | 214,587 | 375,851 | 3,758,512 | (878,001) | 111,844 |
| Madison Mosaic Disciplined Equity Fund | – | 299,355 | – | 299,355 | 3,664,099 | – | 3,673 |
MEMBERS Equity Income Fund Class Y1 | – | 121,327 | 163 | 121,164 | 1,269,794 | 3 | – |
| MEMBERS Large Cap Growth Fund Class Y | 361,678 | 19,737 | 98,351 | 283,064 | 4,231,812 | (205,354) | 20,911 |
| MEMBERS Large Cap Value Fund Class Y | 321,461 | 40,895 | 6,500 | 355,856 | 4,188,431 | (34,337) | 57,501 |
MEMBERS Mid Cap Fund Class Y1 | 357,423 | 2,934 | 3,365 | 356,992 | 2,099,115 | (7,250) | – |
| MEMBERS Small Cap Fund Class Y | 169,339 | 139,585 | 120,028 | 188,896 | 1,926,742 | (158,913) | 5,541 |
| Totals | | | | | | | |
1 Non-income producing.
2 Distributions received includes distributions from net investment income and from capital gains from the underlying funds.
12. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the funds’ financial statements through June 23, 2010, the date the financial statements were issued, and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
MEMBERS Mutual Funds | April 30, 2010
Other Information (unaudited)
FUND EXPENSES PAID BY SHAREHOLDERS
As a shareholder of the funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b–1) fees; and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended April 30, 2010. Expenses paid during the period in the tables below are equal to the fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one–half fiscal year period).
Actual Expenses
The table below provides information about actual account values using actual expenses and actual returns for the funds. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table for the fund you own under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
| | | | |
| Fund | | | | | | | | |
| Conservative Allocation | $1,000 | $1,061.30 | .70% | $3.58 | | $1,057.30 | 1.45% | $ 7.40 |
| Moderate Allocation | 1,000 | 1,086.60 | .70% | 3.62 | | 1,081,20 | 1.45% | 7.48 |
| Aggressive Allocation | 1,000 | 1,107.60 | .70% | 3.66 | | 1,103.00 | 1.45% | 7.56 |
| Cash Reserves | 1,000 | 1,000.00 | .13% | 0.64 | | 1,000.00 | 0.13% | .64 |
| Bond | 1,000 | 1,014.40 | .90% | 4.50 | | 1,009.60 | 1.65% | 8.22 |
| High Income | 1,000 | 1,079.10 | 1.00% | 5.16 | | 1,074.20 | 1.75% | 9.00 |
| Diversified Income | 1,000 | 1,079.40 | 1.10% | 5.67 | | 1,075.90 | 1.85% | 9.52 |
| Equity Income | 1,000 | 1,047.00 | 1.25% | 6.24 | | – | – | – |
| Large Cap Value | 1,000 | 1,127.60 | 1.16% | 6.12 | | 1,124.20 | 1.91% | 10.06 |
| Large Cap Growth | 1,000 | 1,134.40 | 1.20% | 6.35 | | 1,129.90 | 1.95% | 10.30 |
| Mid Cap | 1,000 | 1,177.80 | 1.40% | 7.56 | | 1,171.70 | 2.15% | 11.58 |
| Small Cap | 1,000 | 1,242.40 | 1.50% | 8.34 | | 1,237.20 | 2.26% | 12.54 |
| International Stock | 1,000 | 1,030.40 | 1.60% | 8.05 | | 1,027.40 | 2.35% | 11.81 |
| | |
| Fund | | | | Expenses Paid During Period |
| Conservative Allocation | $1,000 | $1,057.20 | 1.45% | $7.40 |
| Moderate Allocation | 1,000 | 1,082.30 | 1.45% | 7.49 |
| Aggressive Allocation | 1,000 | 1,102.90 | 1.45% | 7.56 |
MEMBERS Mutual Funds | April 30, 2010
Other Information (unaudited)
| | |
| Fund | | | | Expenses Paid During Period |
| Bond | $1,000 | $1,014.70 | .65% | $3.25 |
| High Income | 1,000 | 1,079.10 | .75% | 3.87 |
| Equity Income | 1,000 | 1,048.00 | 1.00% | 4.98 |
| Large Cap Value | 1,000 | 1,129.40 | .91% | 4.80 |
| Large Cap Growth | 1,000 | 1,136.00 | .95% | 5.03 |
| Mid Cap | 1,000 | 1,176.00 | 1.15% | 6.20 |
| Small Cap | 1,000 | 1,244.40 | 1.26% | 7.01 |
| International Stock | 1,000 | 1,031.90 | 1.35% | 6.80 |
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example of the funds you own with the 5% hypothetical examples that appear in the shareholder reports of other similar funds.
| | | | |
| Fund | | | | Expenses Paid During Period | | | | Expenses Paid During Period |
| Conservative Allocation | $1,000 | $1,021.32 | .70% | $3.51 | | $1,017.60 | 1.45% | $7.25 |
| Moderate Allocation | 1,000 | 1,021.32 | .70% | $3.51 | | 1,017.60 | 1.45% | 7.25 |
| Aggressive Allocation | 1,000 | 1,021.32 | .70% | $3.51 | | 1,017.60 | 1.45% | 7.25 |
| Cash Reserves | 1,000 | 1,024.15 | .13% | 0.65 | | 1,024.15 | .13% | 0.65 |
| Bond | 1,000 | 1,020.33 | .90% | 4.51 | | 1,016.61 | 1.65% | 8.25 |
| High Income | 1,000 | 1,019.84 | 1.00% | 5.01 | | 1,016.12 | 1.75% | 8.75 |
| Diversified Income | 1,000 | 1,019.34 | 1.10% | 5.51 | | 1,015.62 | 1.85% | 9.25 |
| Equity Income | 1,000 | 1,025.05 | 1.25% | 6.21 | | – | – | – |
| Large Cap Value | 1,000 | 1,019.04 | 1.16% | 5.81 | | 1,015.32 | 1.91% | 9.54 |
| Large Cap Growth | 1,000 | 1,018.84 | 1.20% | 6.01 | | 1,015.12 | 1.95% | 9.74 |
| Mid Cap | 1,000 | 1,017.85 | 1.40% | 7.00 | | 1,014.13 | 2.15% | 10.74 |
| Small Cap | 1,000 | 1,017.36 | 1.50% | 7.50 | | 1,013.59 | 2.26% | 11.28 |
| International Stock | 1,000 | 1,016.86 | 1.60% | 8.00 | | 1,013.14 | 2.35% | 11.73 |
| | |
| Fund | | | | Expenses Paid During Period |
| Conservative Allocation | $1,000 | $1,017.60 | 1.45% | $7.25 |
| Moderate Allocation | 1,000 | 1,017.60 | 1.45% | 7.25 |
| Aggressive Allocation | 1,000 | 1,017.60 | 1.45% | 7.25 |
MEMBERS Mutual Funds | April 30, 2010
Other Information (unaudited)
| | |
| Fund | | | | Expenses Paid During Period |
| Bond | $1,000 | $1,021.57 | .65% | $3.26 |
| High Income | 1,000 | 1,021.08 | .75% | 3.76 |
| Equity Income | 1,000 | 1,025.05 | 1.00% | 4.94 |
| Large Cap Value | 1,000 | 1,020.28 | .91% | 4.56 |
| Large Cap Growth | 1,000 | 1,020.08 | .95% | 4.76 |
| Mid Cap | 1,000 | 1,019.09 | 1.15% | 5.76 |
| Small Cap | 1,000 | 1,018.55 | 1.26% | 6.31 |
| International Stock | 1,000 | 1,018.10 | 1.35% | 6.76 |
Please note that the expenses shown in both tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. The information provided in the hypothetical example table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N–Q. Form N–Q is available to shareholders at no cost by calling 1-800-877-6089 or on the SEC’s website at www.sec.gov. Form N–Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. More information on the operation of the Public Reference Room may be obtained by calling 1–800–SEC–0330.
PROXY VOTING POLICIES, PROCEDURES AND RECORDS
A description of the policies and procedures used by the Funds to vote proxies related to portfolio securities is available to shareholders at no cost on the Funds’ website at www.membersfunds.com or by calling 1-800-877-6089. The proxy voting records for the Funds for the most recent twelve-month period ended June 30 are available to shareholders at no cost on the SEC’s website at www.sec.gov.
FORWARD-LOOKING STATEMENT DISCLOSURE
One of our most important responsibilities as investment company managers is to communicate with shareholders in an open and direct manner. Some of our comments in our letters to shareholders are based on current management expectations and are considered "forward-looking statements." Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as "estimate," "may," "will," "expect," "believe," "plan" and other similar terms. We cannot promise future returns. Our opinions are a reflection of our best judgment at the time this report is compiled, and we disclaim any obligation to update or alter forward-looking statements as a result of new information, future events, or otherwise.
(logo) MEMBERS(R) Mutual FundsItem 2. Code of Ethics.
(a) The Trust has adopted a code of ethics that applies to the Trust’s principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions, regardless of whether these individuals are employed by the Trust or a third party.
(c) The code was amended and restated effective July 1, 2009 coinciding with the effectiveness of the Trust's invesmtment advisory agreement with Madison Asset Management, LLC (the "Adviser"). The provisions and restrictions of the code are not materially different than the code adopted by the Trust prior to that date.
(d) The Trust granted no waivers from the code during the period covered by this report.
(f) Any person may obtain a complete copy of the code without charge by calling the Adviser at 800-767-0300 and requesting a copy of "the MEMBERS Mutual Funds Sarbanes Oxley Code of Ethics."
Item 3. Audit Committee Financial Expert.
Item 4. Principal Accountant Fees and Services.
Not applicable to Semi-Annual Report.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments
Schedule included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The Trust does not normally hold shareholder meetings. There have been no changes to the Trust's procedures during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Trust’s principal executive officer and principal financial officer determined that the Trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) are effective, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 within 90 days of the date of this report. There were no significant changes in the Trust’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. The officers identified no significant deficiencies or material weaknesses.
(b) There were no changes in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.
(a)(1) Code of ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Act.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Act.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
W. Richard Mason, CCO and Assistant Secretary
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Katherine L. Frank, Chief Executive Officer
