United States
Securities and Exchange Commission
Washington, D.C. 20549
Form N-CSR
Certified Shareholder Report of Registered Management
Investment Companies
Investment Company Act File Number 811-04466
Monetta Fund, Inc.
(exact name of registrant as specified in charter)
1776-A S. Naperville Road
Suite 100
Wheaton, IL 60187-8133
(address of principal executive offices)
Arthur Don Esq.
Seyfarth Shaw LLP
55 E. Monroe Street, Suite 4200
Chicago, IL 60603
(name and address of agent for service)
Registrant's telephone number, including area code: (630) 462-9800
Date of fiscal year end: December 31
Date of reporting period: June 30, 2005
Form N-CSR is to be used by management Investment companies to file reports
with the Commission not later that 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940(17CFR270.30e-1).
The Commission may use the information provided on Form N-CSR in its
regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays current valid Office of Management and Budget ("OMB")
control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary , Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-0609. The OMB has reviewed the collection of
information under the clearance requirements of 44 U.S.C. 3507.
Item 1. Annual Report to Shareholders
The following is a copy of the report transmitted to shareholders pursuant to
Rule 30e-1 under the Investment Company Act of 1940(17CFR270.30e-1).
Monetta Family
of Mutual Funds
No-Load
Monetta Fund
Monetta Trust
Select Technology Fund
Mid-Cap Equity Fund
Blue Chip Fund
Balanced Fund
Intermediate Bond Fund
Government Money
Market Fund
Semi-Annual Report
June 30, 2005
1-800-MONETTA
www.monetta.com
<Page>
TABLE OF CONTENTS
Performance Highlights
Monetta Fund 4
Monetta Select Technology Fund 5
Monetta Mid-Cap Equity Fund 6
Monetta Blue Chip Fund 7
Monetta Balanced Fund 8
Monetta Intermediate Bond Fund 9
Monetta Government Money Market Fund 10
Schedule of Investments
Monetta Fund 11
Monetta Select Technology Fund 14
Monetta Mid-Cap Equity Fund 15
Monetta Blue Chip Fund 18
Monetta Balanced Fund 19
Monetta Intermediate Bond Fund 24
Monetta Government Money Market Fund 27
Financial Statements
Statements of Assets & Liabilities 28
Statements of Operations 29
Statements of Changes in Net Assets 30
Notes to Financial Statements 32
Directors/Trustees 43
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Current performance of
the fund may be lower or higher than the performance quoted. Performance
data current to the most recent month end may be obtained by calling
1-800-Monetta, or visiting www.monetta.com
Footnote: Excluding the Government Money Market Fund, the Monetta Funds, at
the discretion of the Portfolio Manager, may invest in Initial Public
Offerings (IPO's) which will significantly impact its performance. Due to
the speculative nature of IPO's, there can be no assurance that IPO
participation will continue and that IPO's will have a positive effect on
funds' performance. For the six months ended June 30, 2005, the Funds did
not participate in IPO's. Historically, small company stocks and mid-cap
company stocks have been more volatile than large company stocks, including
the increased risk of price fluctuations.
References to individual securities are the views of the Adviser at the date
of this report and are subject to change. References are not a recommendation
to buy or sell any security. Fund holdings and compositions are subject to
change.
Participation in a dollar cost averaging plan does not assure a profit and
does not protect against a loss in declining markets.
Since indices are unmanaged, it is not possible to invest in them.
Sources for performance data include Lipper, Bloomberg L.P. and Frank
Russell Company.
Lipper is an independent mutual fund research and rating service. Each Lipper
average represents a universe of Funds with similar investment objectives.
This report must be preceded or accompanied by a Prospectus. Please refer to
the prospectus for important information about the investment company
including investment objectives, risks, charges and expenses. Read it
carefully before you invest or send money.
Opinions expressed are those of the fund managers and are not intended to be
a forecast of future events, a guarantee of future results, nor investment
advice.
Distributor: Quasar Distributors, LLC 08/05.
<Page 2>
Dear Monetta Shareholder: July 21, 2005
The stock market, as measured by the broad Standard & Poor's 500 Index,
declined 0.81% since year-end. Investors were primarily concerned about rising
oil prices, the continuing increase in the Federal Reserve discount rate and
a slowing economy. Energy remained a top-performing sector, followed closely
by utilities. Healthcare has moved into a leadership position while Telecom
was one of the worst performing sectors.
The widespread hope is that stocks will rally in the second half of the year as
the Federal Reserve's tightening cycle ends and investors see improvements in
the leading economic indicators. Typically, the summer months are
characterized by lower volume and a generally lackluster investment environment.
The key to near term performance will be companies' second quarter earnings
guidance.
An environment where we have a flattening yield curve tends to favor the stable
economic sectors such as healthcare, utilities and consumer staples. More
importantly we have noticed that the growth sector, which is in its sixth
year of underperformance, appears to have been gaining momentum in recent
months. Investors appear to be upgrading the quality of their portfolios
toward growth, as valuation levels appear attractive relative to historical
levels.
The Monetta equity funds continue to be well positioned to capitalize on a
shift toward the growth stock sectors. Monetta's fixed income funds, which
emphasize high quality and short to intermediate term securities, should also
benefit from a change in the Federal Reserve's tightening policy.
The following report discusses each fund's investment results, portfolio
composition and investment strategy.
I encourage all shareholders to register for the college tuition scholarship
program that earns college tuition credits. The credits are equal to 5% of
your account value and can be used by any member of your immediate family or
relatives. Once enrolled in the program, the scholarship credits can be
applied to 172 participating colleges. Please visit our website at
www.monetta.com to register and view the list of participating colleges.
Thank you for investing with Monetta.
Sincerely,
Robert S. Bacarella
President, Founder and Portfolio Manager
<Page 3>
Monetta Fund Period ended 6/30/05
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $56 billion $57.2 million
PERFORMANCE: Average Annual Total Return
1 Year 5 Year 10 Year
Monetta Fund 14.42% -7.27% 4.31%
Russell 3000 Growth* 1.90% -9.93% 7.13%
S&P 500* 6.32% -2.37% 9.94%
*Source Frank Russell Company and Lipper
[Graph Appears Here]
Russell
Monetta 3000 S & P
Date Fund Growth 500
6/05 10,000 10,000 10,000
9/95 11,246 10,931 10,799
12/95 10,922 11,394 11,440
3/96 11,090 12,010 12,055
6/96 11,434 12,767 12,595
9/96 11,414 13,168 12,984
12/96 11,099 13,887 14,066
3/97 10,293 13,812 14,444
6/97 12,409 16,408 16,960
9/97 14,890 17,790 18,230
12/97 14,005 17,878 18,754
3/98 15,546 20,530 21,368
6/98 14,151 21,264 22,077
9/98 10,826 19,083 19,887
12/98 12,740 24,138 24,145
3/99 11,309 25,528 25,348
6/99 12,944 26,703 27,135
9/99 13,097 25,698 25,441
12/99 19,339 32,303 29,224
3/00 22,992 34,659 29,894
6/00 22,233 33,607 29,099
9/00 20,879 31,831 28,816
12/00 16,248 25,062 26,563
3/01 13,296 19,923 23,415
6/01 14,482 21,742 24,785
9/01 11,226 17,390 21,149
12/01 12,826 20,143 23,408
3/02 12,536 19,631 23,452
6/02 11,778 16,005 20,312
9/02 10,799 13,526 16,804
12/02 10,868 14,496 18,221
3/03 10,178 14,315 17,647
6/03 12,109 16,451 20,363
9/03 12,398 17,169 20,902
12/03 14,137 18,986 23,446
3/04 14,026 19,202 23,842
6/04 13,322 19,546 24,252
9/04 13,294 18,512 23,798
12/04 14,346 20,300 26,033
3/05 14,181 19,423 25,473
6/05 15,244 19,919 25,822
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Current performance of the fund may be lower or higher than the performance
quoted. Performance data current to the most recent month end may be obtain
ed by calling 1-800-Monetta or visiting www.monetta.com.
The hypothetical graph to the right compares the change in value of a $10,000
investment in the Monetta Fund, the Russell 3000 Growth Index and the S&P 500
Index, with dividend and capital gains reinvested.
The Russell 3000 Index is an index that measures the performance of the
3,000 large U.S. Companies within the Russell 1000 and Russell 2000 Indices.
The S&P 500 Index is the Standard & Poor's Index of 500
stocks, a widely recognized, unmanaged index of common stock prices.
Please refer to footnote at bottom of Page 2.
Top 5 Equity Holdings:
% of Net Assets
UnitedHealth Group, Inc. 3.28%
Boeing Co. 2.31%
Wells Fargo & Co. 2.29%
Johnson & Johnson 2.27%
General Electric Co. 2.21%
Total Top 5 Equity Holdings 12.36%
Portfolio Composition
Healthcare Services 14.1%
Banks 7.6%
Oil & Gas 6.7%
Retail 6.6%
Software 5.0%
Aerospace/Defense 4.6%
Home Builders 4.3%
Healthcare Products 3.9%
All Other Industries 40.2%
(A) 7.0%
(A) Short-term investments net of other assets and liabilities.
Commentary
The Monetta Fund was up 6.26% for the first half of 2005.
This compares favorably to the returns of the Russell 3000
Growth Index and the Standard & Poor's 500 Index, which
were negative 1.88% and negative 0.81%, respectively, since year-end.
Fund performance benefited from weightings in the Housing, Healthcare
and Oil sectors and underweightings in the Financial and Technology areas.
In addition, the Fund received a one-time class action lawsuit settlement
during the second quarter totaling approximately $2.2 million.
The best performing securities since year-end included Toll Brothers,
Inc. and Pulte Homes, in the housing sector, representing 2.13% and 2.21%,
respectively, of net assets at June 30, 2005. In the Healthcare sector,
United Health Group Inc. and Coventry Healthcare, Inc., performed well
representing 3.28% and 1.84%, respectively, of the June 30, 2005 net assets.
In the Oil sector, leading performers were Exxon Mobil Corp and Sunoco, Inc.,
representing 0.50% and 1.75% of the June 30, 2005 net assets, respectively.
The worst performing securities were primarily in the Technology sector,
including holdings of Cree Inc, Verisign, Inc. and IBM, all of which were sold.
During the second quarter we were very aggressive in reducing the number of
holdings as we consolidate into existing positions that demonstrated improving
relative strength and earnings prospects. In addition, new companies were
added to the portfolio, which included Arch Coal, Inc., Bed, Bath and Beyond,
Inc. and Sears Holdings Company, representing 0.67%, 0.58% and 0.65% of the
June 30, 2005 net assets, respectively.
From a sector perspective, our largest weightings are in the Healthcare
group, primarily in HMO and service sectors. We continue to emphasize growth
companies that demonstrate improving technical and fundamental
characteristics. We expect stock multiples to expand as the economic outlook
improves, making growth stocks an attractive investment alternative.
<Page 4>
Monetta Select Technology Fund Period ended 6/30/05
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $44 billion $1.5 million
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year 2/1/97
Select Technology Fund -3.13% -14.81% 0.58%
S&P 500* 6.32% -2.37% 6.69%
Merrill Lynch 100
Technology Index* -2.54% -17.35% 6.56%
*Source Lipper and Bloomberg L.P.
[Graph Appears Here]
Merrill
Select S&P Lynch
DATE Tech 500 100 Tech
12/96 10,000 10,000 10,000
3/97 9,490 9,631 8,579
6/97 11,820 11,311 9,972
9/97 15,089 12,158 12,158
12/97 14,716 12,507 10,770
3/98 15,956 14,250 12,453
6/98 15,321 14,723 13,049
9/98 12,240 13,263 11,609
12/98 14,303 16,102 17,218
3/99 13,246 16,904 19,164
6/99 15,958 18,096 23,253
9/99 16,085 16,967 24,625
12/99 23,301 19,490 40,115
3/00 26,237 19,936 48,980
6/00 23,388 19,406 43,847
9/00 24,370 19,217 42,216
12/00 18,936 17,715 25,646
3/01 15,739 15,615 17,965
6/01 17,006 16,529 20,752
9/01 12,699 14,104 12,266
12/01 14,705 15,611 17,324
3/02 12,770 15,640 16,809
6/02 8,729 13,546 11,669
9/02 6,357 11,207 8,004
12/02 7,628 12,151 10,143
3/03 7,713 11,769 10,132
6/03 9,380 13,579 13,186
9/03 10,524 13,939 14,805
12/03 11,597 15,635 17,153
3/04 11,032 15,899 17,415
6/04 10,835 16,173 17,475
9/04 9,606 15,870 15,533
12/04 11,245 17,360 18,418
3/05 10,171 16,987 16,911
6/05 10,496 17,220 17,043
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Current performance of the fund may be lower or higher than the
performance quoted. Performance data current to the most recent
month end may be obtained by calling 1-800-Monetta or visiting
www.monetta.com.
The hypothetical graph above compares the change in value of a
$10,000 investment in the Monetta Select Technology Fund, the
S&P 500 Index and the Merrill Lynch 100 Technology Index, with
dividends and capital gains reinvested.
The S&P 500 Index is the Standard & Poor's Index of 500 stocks,
a widely recognized, unmanaged index of common stock prices.
The Merrill Lynch 100 Technology Index is an equal-dollar weighted
index of 100 stocks designed to measure the performance of a cross
section of large, actively traded technology stocks and ADR's.
Please refer to footnote at bottom of Page 2.
Portfolio Composition
Telecommunications 20.7%
Electronic Components/Semiconductors 18.1%
Software 17.6%
Computers 13.8%
Internet 11.2%
Semiconductor Components/Integrated Circuits 8.7%
Semiconductor Equipment 3.0%
Media 2.2%
All Other Industries 2.5%
(A) 2.2%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
% of Net Assets
Cisco Systems, Inc. 3.84%
Intel Corp. 3.49%
Microsoft Corp. 3.33%
Motorola, Inc. 3.06%
National Semiconductor Corp. 2.95%
Total Top 5 Equity Holdings 16.67%
Commentary
The Monetta Select Technology Fund posted a negative return of
6.66% during the first half of 2005. This compares favorably
to the Merrill Lynch 100 Technology and Goldman Sacks Technology
indices negative returns of 7.46% and 7.34%, respectively.
The technology sector continues to suffer from valuation concerns
and lackluster demand in end product markets. Although many technology
companies have reduced their inventory down to reasonable levels,
the sector needs a new product cycle to stimulate investor interest.
The fund's best performing securities, since year-end, included
Apple Computer, Inc., Corning, Inc., and Google, Inc., representing
1.97%, 1.89% and .99% of the June 30, 2005 net assets, respectively.
The worst performing holdings were Avaya, Inc., and eBay, Inc.
Avaya was sold, while eBay, which represented 1.77% of the June 30, 2005
net assets, was held. In spite of eBay's stumble, we believe the company
shortfall is temporary and that it has years of profitable growth ahead
of it and is considered an attractive long-term holding.
Within the industry sectors, Telecommunications was the largest sector
weighting representing 20.7% of the June 30, 2005 portfolio. Major
holdings in this sector include Cisco Systems, Inc., Motorola, Inc.
and Qualcomm, Inc., representing 3.84%, 3.06% and 2.65% of the
June 30, 2005 net assets, respectively. Other major fund holdings include
Intel Corporation and Microsoft Corporation, representing 3.49% and 3.33% of
the June 30, 2005 net assets, respectively.
Toward the end of the second quarter, the number of portfolio holdings
was reduced from 84 to 54 securities. We primarily added to existing
positions that demonstrated improving relative strength and earning
prospects. Positions added to include National Semiconductor Company
and Texas Instruments, representing 2.95% and 2.82% of the June 30, 2005
net assets, respectively.
Our investment strategy is to continue to consolidate into those sectors
/companies where revenues, margins and earning estimates are high or
improving. We remain confident in the long-term attractiveness of this sector.
<Page 5>
Monetta Mid-Cap Equity Fund Period ended 6/30/05
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $11 billion $6.8 million
PERFORMANCE: Average Annual Total Return
1 Year 5 Year 10 Year
Mid-Cap Equity Fund 8.96% -13.88% 3.30%
S&P 400 Mid-Cap Index* 14.03% 8.49% 14.66%
*Source Lipper Analytical Services, Inc.
[Graph Appears Here]
DATE MIDCAP S & P 400
6/95 10,000 10,000
9/95 10,645 10,976
12/95 10,421 11,133
3/96 11,319 11,819
6/96 11,554 12,159
9/96 12,007 12,513
12/96 12,942 13,271
3/97 12,889 13,073
6/97 14,681 14,995
9/97 16,788 17,406
12/97 16,714 17,551
3/98 18,287 19,483
6/98 17,751 19,066
9/98 13,856 16,307
12/98 16,569 20,904
3/99 16,410 19,571
6/99 18,522 22,340
9/99 17,581 20,463
12/99 25,414 23,981
3/00 30,822 27,024
6/00 29,185 26,132
9/00 30,610 29,308
12/00 22,189 28,179
3/01 13,087 25,144
6/01 15,813 28,453
9/01 11,657 23,739
12/01 12,634 28,007
3/02 12,293 29,889
6/02 10,740 27,106
9/02 8,846 22,623
12/02 9,186 23,942
3/03 9,338 22,879
6/03 11,649 26,912
9/03 12,236 28,685
12/03 13,449 32,469
3/04 13,127 34,112
6/04 12,692 34,443
9/04 11,991 33,719
12/04 13,488 37,820
3/05 13,412 37,668
6/05 13,829 39,273
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Current performance of the fund may be lower or higher than the performance
quoted. Performance data current to the most recent month end may be obtained
by calling 1-800-Monetta or visiting www.monetta.com.
The hypothetical graph above compares the change in value of a $10,000
investment in the Monetta Mid-Cap Equity Fund to the S&P 400 Mid-Cap
Index, with dividends and capital gains reinvested.
The S&P 400 Mid-Cap Index is an unmanaged group of 400 domestic
stocks chosen for their market size, liquidity and industry
group representation.
Please refer to footnote at bottom of Page 2.
Portfolio Composition
Healthcare Services 8.3%
Pharmaceuticals 6.6%
Oil & Gas 6.3%
Internet 6.1%
Diversified Financial Services 5.3%
Telecommunications 5.1%
Lodging 4.5%
Electric 4.5%
All Other Industries 49.4%
(A) 3.9%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
% of Net Assets
Valero Energy Corp. 2.90%
The Chicago Mercantile Exchange 2.16%
Caremark Rx, Inc. 1.96%
The Dun & Bradstreet Corp. 1.81%
The Reader's Digest Association, Inc. 1.69%
Total Top 5 Equity Holdings 10.52%
Commentary
The Monetta Mid-Cap Equity Fund was up 2.53% during the first half of 2005.
This compares to a 3.85% return of the Standard and Poor's 400 Mid-Cap Index
since year-end.
The fund benefited from its holdings in the Energy and Bio-med areas.
Oil was driven higher by increasing demand from the rapid industrialization
of China and lack of excess refining capacity domestically. Top performing
fund holdings in this sector were Valero Energy Corporation and XTO Energy,
representing 2.90% and 1.66% of the June 30, 2005 net assets, respectively.
In the Bio-tech sector, the best performing securities were Celgene
Corporation and Genetech, Inc, representing 1.19% and 1.18% of the
June 30, 2005 net assets, respectively. These companies benefited from an
improving earnings outlook and an increasing number of new products in their
distribution channels.
Among the worst performing securities was eBay, representing 1.45% of the
June 30, 2005 net assets. Although earnings were slightly below consensus
estimates, the company's lowered profit projections panicked investors. We
believe this was an over reaction and continue to hold this stock. Career
Education was also a poor performer and was sold. The company suffered
enrollment declines and an increased level of regulatory and legal risk.
The portfolio was very active over the last six months. As of June 30, 2005,
the fund had 103 holdings and Valero Energy Corporation was the largest
position representing 2.90% of net assets. The largest sector weightings were
in the Healthcare and Oil & Gas industries. New purchases during the last
quarter included Amylin Pharmaceuticals, Inc., Calpine Corporation, E-Trade
Financial Corporation and Starbucks Corporation representing, 0.61%, 0.50%,
1.43% and 1.51% of the June 30, 2005 net assets, respectively.
As we identify new sector leadership, we intend to gradually reduce the number
of portfolio holdings, favoring those companies that demonstrate improving
technical and fundamentals characteristics.
We believe the near term catalyst to a favorable market environment is an end
to the Federal Reserve's tightening cycle and an improving economic growth
outlook.
<Page 6>
Monetta Blue Chip Fund Period ended 6/30/05
Investment Objective: Market Capitalization: Total Net Assets:
Capital Appreciation $96 billion $1.1 million
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year 9/1/95
Blue Chip Fund 2.92% -19.74% 0.08%
S&P 500 Index* 6.32% -2.37% 6.69%
*Source Lipper
[Graph Appears Here]
DATE Blue Chip Fund S&P 500
6/95 10,000 10,000
9/95 10,000 10,482
12/95 10,574 11,105
3/96 11,344 11,701
6/96 11,923 12,225
9/96 12,864 12,603
12/96 13,555 13,653
3/97 13,842 14,020
6/97 15,621 16,465
9/97 17,333 17,699
12/97 17,167 18,207
3/98 18,413 20,745
6/98 18,003 21,433
9/98 14,161 19,307
12/98 18,711 23,441
3/99 21,536 24,608
6/99 22,873 26,343
9/99 22,359 24,699
12/99 28,811 28,372
3/00 31,828 29,022
6/00 30,249 28,250
9/00 30,019 27,976
12/00 24,505 25,788
3/01 13,551 22,732
6/01 14,256 24,062
9/01 9,895 20,532
12/01 11,287 22,725
3/02 10,614 22,768
6/02 8,831 19,719
9/02 7,318 16,314
12/02 7,839 17,689
3/03 7,604 17,132
6/03 9,135 19,768
9/03 9,185 20,291
12/03 10,329 22,760
3/04 10,363 23,145
6/04 9,791 23,543
9/04 9,219 23,103
12/04 10,178 25,272
3/05 9,976 24,729
6/05 10,077 25,068
Performance data quoted represents past performance; past performance does
not guarantee future results. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost. Current performance of
the fund may be lower or higher than the performance quoted. Performance
data current to the most recent month end may be obtained by calling
1-800-Monetta or visiting www.monetta.com.
The hypothetical graph above compares the change in value of a $10,000
investment in the Monetta Blue Chip Fund to the S&P 500 Index, with dividends
and capital gains reinvested.
The S&P 500 Index is the Standards & Poor's Index of 500 stocks, a widely
recognized, unmanaged index of common stock prices.
Please refer to footnote at bottom of Page 2.
Portfolio Composition
Diversified Financial Services 13.3%
Oil & Gas 10.6%
Retail 10.0%
Agriculture 9.5%
Miscellaneous Manufacturing 8.6%
Media 8.3%
Telecommunications 8.2%
All Other Industries 31.5%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
% of Net Assets
Intel Corp. 6.85%
General Electric Co. 6.07%
Comcast Corp. - CL A 5.38%
Cisco Systems, Inc. 5.02%
Transocean, Inc. 4.73%
Total Top 5 Equity Holdings 28.05%
Commentary
For the six months ended June 30, 2005 the Fund declined 0.99% versus a
0.81% decline of the S&P 500 index. The best performing securities
were primarily in the oil sectors while the worst performing securities
were in the technology and transportation related industries.
At June 30, stocks represented 92.4% of the portfolio, with Intel Corporation
the largest individual holding, at 6.85%
On May 9, 2005, the Monetta Trust Board of Trustees and the Fund's
management company (the "Adviser") approved a plan to liquidate and close
Monetta Trust Blue Chip Fund. The liquidation occurred on July 29, 2005
(the "Liquidation Date").
The Board and management considered various factors such as performance,
expense ratio, asset level, and alternatives to liquidation. Based on
this analysis it was determined that it is in the best interests of
the shareholders of the Monetta Trust Blue Chip Fund ("Blue Chip Fund")
to liquidate the Fund.
Shareholders of the Blue Chip Fund had the option to either redeem their
shares for cash or exchange them into the Monetta Fund or one of the
other series in the Monetta Trust prior to the liquidation date.
Shares held directly with Blue Chip Fund in an individual retirement
account ("IRA"); Roth IRA; SEP or SARSEP; Coverdell Education Savings
Account; custodial accounts; as well as certain other retirement plan
accounts that had not liquidated prior to the Liquidation Date were
exchanged on the Liquidation Date for shares in Monetta Government
Money Market Fund.
<Page 7>
Monetta Balanced Fund Period ended 6/30/05
Investment Objective: Market Capitalization: Average Maturity:
Capital Appreciation/Income $62 billion 6.6 Years
Total Net Assets:
$3.8 million
PERFORMANCE: Average Annual Total Return
Since Inception
1 Year 5 Year 9/1/95
Balanced Fund 5.52% -4.30% 6.90%
S&P 500 Index* 6.32% -2.37% 6.69%
Lehman Bros. Gov't/
Credit Bond Index* 7.26% 7.71% 6.92%
*Source Lipper
[Graph Appears Here]
DATE Balanced S&P 500 Lehman Corp/Govt
6/95 10,000 10,000 10,000
9/95 10,000 10,482 10,070
12/95 10,616 11,105 10,647
3/96 11,131 11,701 10,398
6/96 11,913 12,225 10,447
9/96 12,547 12,603 10,631
12/96 13,369 13,653 10,956
3/97 13,358 14,020 10,862
6/97 14,642 16,465 11,257
9/97 16,431 17,699 11,651
12/97 16,205 18,207 12,025
3/98 17,321 20,745 12,208
6/98 16,923 21,433 12,437
9/98 15,004 19,307 13,053
12/98 17,602 23,441 13,070
3/99 18,952 24,608 12,913
6/99 19,782 26,343 12,771
9/99 19,353 24,699 12,840
12/99 22,814 28,372 12,787
3/00 24,609 29,022 13,131
6/00 24,018 28,250 13,322
9/00 24,833 27,976 13,704
12/00 21,639 25,788 14,303
3/01 17,500 22,732 14,761
6/01 18,452 24,062 14,805
9/01 16,702 20,532 15,510
12/01 17,885 22,725 15,519
3/02 17,341 22,768 15,446
6/02 15,853 19,719 16,025
9/02 14,625 16,314 16,939
12/02 15,330 17,689 17,232
3/03 15,276 17,132 17,515
6/03 16,909 19,768 18,133
9/03 17,235 20,291 18,040
12/03 18,311 22,760 18,035
3/04 18,624 23,145 18,590
6/04 18,264 23,543 18,001
9/04 18,189 23,103 18,642
12/04 19,325 25,272 18,791
3/05 19,004 24,729 18,665
6/05 19,274 25,068 19,307
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Current performance of the fund may be lower or higher than the performance
quoted. Performance data current to the most recent month end may be
obtained by calling 1-800-Monetta or visiting www.monetta.com.
The hypothetical graph above compares the change in value of a $10,000
investment in the Monetta Balanced Fund to the S&P 500 Index, with
dividends and capital gains reinvested, and the Lehman Bros.
Gov't/Credit Bond Index.
The S&P 500 Index is the Standard & Poor's Index of 500 stocks,
a widely recognized, unmanaged index of common stock prices.
The Lehman Brothers Gov't/Credit Bond Index is a market value weighted
performance benchmark which includes virtually every major U.S.
government and investment-grade rated corporate bond with 1-30 years
remaining until maturity.
Please refer to footnote at bottom of Page 2.
Portfolio Composition
Common Stocks 52.7%
Corporate Bonds 27.8%
Treasury Notes 8.8%
U.S. Gov't Agencies 5.8%
(A) 4.1%
Treasury Strips 0.8%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
% of Net Assets
NCR Corp. 1.86%
Time Warner, Inc. 1.77%
Johnson & Johnson 1.72%
Comcast Corp. - CL A 1.62%
Cardinal Health, Inc. 1.52%
Total Top 5 Equity Holdings 8.49%
Commentary
The Monetta Balanced Fund returned a negative 0.27% for the six months
ended June 30, 2005. This compares to the returns of the Standard &
Poor's 500 Index and the Lehman Bros. Gov't/Credit Bond Index of a
negative 0.81% and 2.75%, respectively.
During the first half of 2005, the Fund's equity commitment declined
from 59.6% to 52.7%. Securities sold to realize profits included Apple
Computer, Inc., Kerr-McGee Corp and Allegheny Energy, Inc. and securities
sold to cut losses were International Paper Company and Thermo Electron
Corporation. The best performing securities included HCA Inc.,
Unocal Corporation and XTO Energy, Inc., representing 1.50%, 0.86% and 0.96%
of the June 30, 2005 net assets, respectively. Time Warner Inc., representing
1.77% of the June 30, 2005 net assets, was the worst performing security.
We continue to hold this security based on its compelling break-up value.
The fixed income portion of the Fund did not change materially during
the first half of 2005. Most activity occurred as a result of bond
maturities, which were reinvested primarily in the intermediate terms
issues that generally mature in '07 or '08. The fixed income holdings
continue to be positioned defensively, with an average duration of 5.06 years.
The dramatic flattening of the yield curve suggests a further slowing
in U.S. and global growth. The future shape of the yield curve will
likely hinge on the mix of economic growth, inflation and the Federal
Reserve's response to these factors. The end to the Federal Reserve's
tightening cycle would likely lead to a rally in the equity markets,
higher long-term interest rates and stable intermediate and short-term
rates. The fund's equity and fixed income structure is positioned to
benefit from such an environment.
<Page 8>
Monetta Intermediate Bond Fund Period ended 6/30/05
Investment Objective: 30-Day SEC Yield: Average Maturity:
Income 2.98% 4.3 Years
Total Net Assets:
$9.0 million
PERFORMANCE: Average Annual Total Return
1 Year 5 Year 10 Year
Intermediate Bond Fund 4.12% 5.59% 5.82%
Lehman Bros. Intermediate
Gov't/Credit Bond Index* 4.80% 6.87% 6.35%
*Source Lipper
[Graph Appears Here]
DATE Monetta Lehman Interm.Gov't/Credit
6/95 10,000 10,000
9/95 10,151 10,166
12/95 10,350 10,524
3/96 10,319 10,436
6/96 10,474 10,502
9/96 10,704 10,688
12/96 11,018 10,950
3/97 10,990 10,938
6/97 11,364 11,260
9/97 11,721 11,564
12/97 11,998 11,812
3/98 12,171 11,996
6/98 12,428 12,222
9/98 12,962 12,770
12/98 13,004 12,809
3/99 13,103 12,784
6/99 12,953 12,733
9/99 13,174 12,850
12/99 13,212 12,857
3/00 13,401 13,050
6/00 13,397 13,270
9/00 13,800 13,652
12/00 14,286 14,157
3/01 14,791 14,637
6/01 14,926 14,735
9/01 15,532 15,413
12/01 14,920 15,426
3/02 14,756 15,392
6/02 15,326 15,940
9/02 15,914 16,662
12/02 16,298 16,943
3/03 16,588 17,199
6/03 16,981 17,667
9/03 16,894 17,663
12/03 16,913 17,674
3/04 17,273 18,111
6/04 16,886 17,654
9/04 17,264 18,133
12/04 17,314 18,212
3/05 17,224 18,054
6/05 17,581 18,502
Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal
value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
Current performance of the fund may be lower or higher than the performance
quoted. Performance data current to the most recent month end may be obtained
by calling 1-800-Monetta or visiting www.monetta.com.
Prior to July 1, 2001, total returns are net of a portion or all of
the advisory fees waived by the Adviser. Effective July 1, 2001, the Adviser
elected not to waive any portion of the management fee. The
hypothetical graph above compares the change in value of a $10,000
investment in the Monetta Intermediate Bond Fund to the Lehman Bros.
Intermediate Government/Credit Bond Index.
The Lehman Brothers Intermediate Government/Credit Bond Index is a market
value weighted performance benchmark which includes virtually every major U.S.
government and investment-grade rated corporate bond with 1-10 years
remaining until maturity. Please refer to footnote at bottom of Page 2.
Portfolio Composition
Corporate Bonds 72.6%
Treasury Notes 15.2%
U.S. Gov't Agencies 10.8%
(A) 1.4%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
% of Net Assets
1 Year or Less 14.29%
1-3 Years 28.28%
3-6 Years 23.51%
6-10 Years 31.79%
Over 10 Years 2.13%
Total 100.00%
Commentary
The Monetta Intermediate Bond Fund had a gross return of 2.25% (1.54% net of
expenses) for the six months ended June 30, 2005 versus its benchmark Lehman
Brothers Intermediate Government/Credit Index return of 1.59%.
During the first half of 2005, the global bond market rendered a contradictory
and partially disconcerting vote on the future. The descent and "flattening"
of yield curves around the world, even with the Fed marching upward at a
measured pace, conveys major reservations about the firmness of the world
economy and capital markets over the next 6-12 months.
The first quarter of 2005 was a conflicted one as it represented a
reassessment of principal bond risks: inflation, interest rates, credit and
volatility. The U.S. bond market racked up the worst nominal returns since
the second quarter of 2004. Corporate credit spread sectors (especially BBB
and High Yield) provided the lowest relative performance versus U.S.
Treasuries since July 2003. The ten-year Treasury peaked at 4.48% amid
increased volatility and credit concerns led by downgrades of GM and Ford to
junk status, which resurfaced to seize credit market headlines. In the second
quarter of 2005, we witnessed a global rally in the yield curve, which
translated into a resurgence of positive absolute returns for all investment-
grade debt classes, though most spread sectors still underperformed government
benchmarks. Bond market investors seemed to take heart from several directions:
global economic expansion remaining on track, volatility subdued by historical
standards, U.S. dollar appreciation, and stable fundamental credit quality.
The fund continues to maintain an "A" quality-diversified portfolio with an
average maturity of 4.3 years. We continue to overweight the corporate credit
sector, particularly in shorter utility maturities, to generate incremental
yield. Heading into the second half of 2005, excess liquidity and limited
alternatives are likely to keep spreads from widening appreciably in the bond
credit sectors and should provide ample performance opportunities for the
fund.
<Page 9>
Monetta Government Money Market Fund Period ended 6/30/05
Investment Objective: 7-Day Yield: Average Days to Maturity:
Income and Capital Preservation 2.42% 25 Days
Total Net Assets:
$2.5 million
PERFORMANCE: Average Annual Total Return
1 Year 5 Year 10 Year
Monetta Gov't Money Market Fund 1.62%** 2.09%** 3.64%**
Lipper US Gov't Money
Market Funds Avg.* 1.41% 1.92% 3.45%
*Source Lipper
[Graph Appears Here]
DATE Monetta Lipper US Gov't
Gov't Money Market Money Market Avg.
6/95 10,000 10,000
9/95 10,147 10,133
12/95 10,285 10,265
3/96 10,413 10,389
6/96 10,539 10,513
9/96 10,670 10,640
12/96 10,806 10,769
3/97 10,939 10,896
6/97 11,074 11,030
9/97 11,216 11,167
12/97 11,362 11,308
3/98 11,506 11,447
6/98 11,653 11,589
9/98 11,806 11,733
12/98 11,956 11,868
3/99 12,096 11,995
6/99 12,235 12,123
9/99 12,378 12,260
12/99 12,535 12,411
3/00 12,702 12,571
6/00 12,885 12,747
9/00 13,083 12,938
12/00 13,293 13,135
3/01 13,468 13,304
6/01 13,604 13,439
9/01 13,712 13,546
12/01 13,779 13,613
3/02 13,823 13,660
6/02 13,870 13,707
9/02 13,916 13,748
12/02 13,951 13,782
3/03 13,972 13,807
6/03 13,994 13,828
9/03 14,012 13,841
12/03 14,029 13,853
3/04 14,046 13,866
6/04 14,063 13,878
9/04 14,098 13,902
12/04 14,150 13,941
3/05 14,212 13,997
6/05 14,290 14,072
Performance data quoted represents past performance; past performance
does not guarantee future results.Current performance of the fund may
be lower or higher than the performance quoted. Performance data current
to the most recent month end may be obtained by calling 1-800-Monetta or
visiting www.Monetta.com. An investment in the Government Money Market
Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency. Although the Fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose money by
investing in the Fund. The hypothetical graph above compares the change in
value of a $10,000 investment in the Monetta Government Money Market Fund
to the Lipper U.S. Government Money Market Funds Average.
The Lipper U.S. Government Money Market Funds Average is a performance
benchmark which includes funds invested principally in financial instruments
issued or guaranteed by the U.S. government, its agencies or its
instrumentalities, with dollar-weighted average maturities of less than
90 days.
**Total returns are net of advisory and distribution fees waived and
voluntary absorption of all or part of the Fund's operating expenses
by the Advisor. Had fees not been waived, the 7-day yield would have been
1.52%, versus 2.42%, on June 30, 2005. The 7-day yield will vary, and the
yield quotation more closely reflects the current earnings of the
money market fund than the total return quotation. Please refer to footnote
at bottom of Page 2.
Portfolio Composition
Federal National Mortgage Assoc. 49.0%
Federal Home Loan Bank 38.5%
Federal Farm Credit Discount Note 11.8%
(A) 0.7%
(A) Short-term investments net of other assets and liabilities.
Top 5 Equity Holdings:
Government Obligations 99.3%
Other Assets Less Liabilities 0.7%
Total 100.0%
Commentary
The Monetta Government Money Market Fund gained 1.00% for the six months
ended June 30, 2005. This compared favorably to the Lipper U.S. Government
Money Market Funds category, which gained 0.94% for the same period.
The Federal Reserve started its tightening policy exactly one year ago
and since has raised the federal funds rate nine times by 25 basis points
for a total of 225 basis points. Maintaining its "measured upward pace,"
the Federal Reserve's latest two increases in the second quarter of 2005
increased the federal funds rate to 3.25% - the highest level since
mid-September 2001. Throughout this tightening cycle, the Federal Reserve
has taken great care to telegraph its intention, which has kept market
disruption to a minimum.
With recent data revealing an economy chugging along at a 3+% rate of
GDP growth and inflation relatively tame, the Federal Reserve has every
reason to continue to raise rates toward the 4-4.25% level as we head
into the second half of the year. It is interesting to note that while
the Federal Reserve has been raising short rates, bond investors seem
more intrigued with ten-year rates, which declined during the second
quarter to below 4% from a high of 4.48% at 3/31/05. Contributing to
the decline was the lessening of inflation expectations despite oil
prices rising to a new high of $60 per barrel over the last month.
The Fund continues to overweight the agency discount note sector versus
Treasury bills because of the incremental yield that it provides. Our
strategy is to maintain the relatively short average life of the Fund
at this time because the anticipated Federal Reserve rate hikes should
provide an opportunity to invest short-term maturities at higher yields.
<Page 10>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Fund
COMMON STOCKS - 93.0% Value
NUMBER OF SHARES
Aerospace/Defense - 4.6%
20,000 Boeing Co. $1,320,000
5,200 General Dynamics Corp. 569,608
8,800 Lockheed Martin Corp. 570,856
3,000 Northrop Grumman Corp. 165,750
2,626,214
Apparel - 0.8%
5,500 Nike, Inc. - CL B 476,300
Banks - 7.6%
27,000 Bank of America Corp. 1,231,470
4,000 BB&T Corp. 159,880
18,500 U.S. Bancorp 540,200
14,500 Wachovia Corp. 719,200
21,300 Wells Fargo & Co. 1,311,654
5,500 Zions Bancorporation 404,415
4,366,819
Beverages - 0.4%
4,000 PepsiCo, Inc. 215,720
Biotechnology - 0.7%
*4,000 Amgen, Inc. 241,840
*2,500 Genzyme Corp. 150,225
392,065
Chemicals - 0.6%
7,900 Dow Chemical Co. 351,787
Coal - 1.5%
7,000 Arch Coal, Inc. 381,290
9,500 Peabody Energy Corp. 494,380
875,670
Commercial Services - 1.8%
4,000 MAXIMUS, Inc. 141,160
20,000 McKesson Corp. 895,800
1,036,960
Computers - 0.9%
*12,500 Dell, Inc. 493,875
Cosmetics/Personal Care - 1.6%
17,000 Proctor & Gamble Co. 896,750
Diversified Financial Services - 2.9%
1,200 The Chicago Mercantile Exchange 354,600
10,000 Countrywide Financial Corp. 386,100
6,500 The Goldman Sachs Group, Inc. 663,130
5,000 Merrill Lynch & Co., Inc. 275,050
1,678,880
Electric - 1.1%
*15,000 The AES Corp. $ 245,700
6,100 Edison Int'l 247,355
3,000 FPL Group, Inc. 126,180
619,235
Food - 3.1%
35,000 Safeway, Inc. 790,650
11,000 Sysco Corp. 398,090
*30,000 The Kroger Co. 570,900
1,759,640
Forest Products & Paper - 0.3%
2,700 Weyerhaeuser Co. 171,855
Healthcare-Products - 3.9%
2,400 Bausch & Lomb, Inc. 199,200
6,200 Baxter Int'l, Inc. 30,020
3,500 Beckman Coulter, Inc. 22,495
5,000 Becton, Dickinson and Co. 62,350
20,000 Johnson & Johnson, 300,000
2,214,065
Healthcare-Services - 14.1%
3,500 Aetna, Inc. 289,870
*14,900 Coventry Health Care, Inc. 1,054,175
17,500 HCA, Inc. 991,725
10,000 Health Management Associates,
Inc. - CL A 261,800
*15,200 Humana, Inc. 604,048
*12,000 Laboratory Corp. of
America Holdings 598,800
*11,000 PacifiCare Health Systems, Inc. 785,950
13,400 Quest Diagnostics, Inc. 713,818
*13,000 Triad Hospitals, Inc. 710,320
36,000 UnitedHealth Group, Inc. 1,877,040
*5,000 WellCare Health Plans, Inc. 177,550
8,065,096
Home Builders - 4.3%
15,000 Pulte Homes, Inc. 1,263,750
*12,000 Toll Brothers, Inc. 1,218,600
2,482,350
<Page 11>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Fund (Continued)
NUMBER OF SHARES Value
Insurance - 3.2%
14,000 The Allstate Corp. $ 836,500
1,400 Loews Corp. 108,500
3,000 Prudential Financial, Inc. 196,980
6,100 The Chubb Corp. 522,221
4,000 The St. Paul Travelers
Companies, Inc. 158,120
1,822,321
Internet - 1.8%
*10,000 eBay, Inc. 330,100
*10,000 McAfee, Inc. 261,800
*20,000 Symantec Corp. 434,800
1,026,700
Iron/Steel - 0.4%
5,000 Nucor Corp. 228,100
Leisure Time - 0.5%
6,000 Royal Caribbean Cruises Ltd 290,160
Lodging - 0.7%
*10,000 MGM MIRAGE 395,800
Machinery- Construction&Mining - 1.2%
7,100 Caterpillar, Inc. 676,701
Media - 1.6%
*5,500 Comcast Corp. - CL A 168,850
13,000 The Walt Disney Co. 327,340
*25,000 Time Warner, Inc. 417,750
913,940
Miscellaneous Manufacturing - 2.7%
36,500 General Electric Co. 1,264,725
10,000 Tyco Int'l Ltd 292,000
1,556,725
Oil & Gas - 6.7%
12,500 ChevronTexaco Corp. 699,000
9,600 ConocoPhillips 551,904
5,000 Exxon Mobil Corp. 287,350
10,000 Marathon Oil Corp. 533,700
2,500 Suncor Energy, Inc. 118,300
8,800 Sunoco, Inc. 1,000,384
*5,000 Transocean, Inc. 269,850
5,000 Valero Energy Corp. 395,550
3,856,038
Oil & Gas Services - 1.4%
4,500 Baker Hughes, Inc. $ 230,220
4,000 BJ Services Co. 209,920
7,000 Halliburton Co. 334,740
774,880
Pharmaceuticals - 3.2%
3,500 Abbott Laboratories 171,535
9,000 Cardinal Health, Inc. 518,220
*14,000 Caremark RX, Inc. 623,280
*15,000 King Pharmaceuticals, Inc. 156,300
*89 OSI Pharmaceuticals, Inc. RT (c) 2
*5,000 VCA Antech, Inc. 121,250
5,500 Wyeth 244,750
1,835,337
Pipelines - 0.3%
9,000 The Williams Companies, Inc. 171,000
Retail - 6.6%
*4,000 Advance Auto Parts, Inc. 258,200
*8,000 Bed Bath & Beyond, Inc. 334,240
2,400 Best Buy Co., Inc. 164,520
30,600 CVS Corp. 889,542
6,000 Home Depot, Inc. 233,400
8,000 J.C. Penney Co., Inc. 420,640
5,000 Lowe's Companies, Inc. 291,100
7,000 McDonald's Corp. 194,250
*2,500 Sears Holdings Corp. 374,675
*7,000 Starbucks, Corp. 361,620
5,000 Target Corp. 272,050
3,794,237
Semiconductors - 3.7%
*12,000 Altera Corp. 237,840
4,600 Analog Devices, Inc. 171,626
21,000 Intel Corp. 547,260
5,000 KLA-Tencor Corp. 218,500
34,440 Taiwan Semiconductor Mfg Co.
Ltd - SP ADR (b) 314,093
22,500 Texas Instruments, Inc. 631,575
2,120,894
<Page 12>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Fund (Continued)
NUMBER OF SHARES Value
Software - 5.0%
7,000 Autodesk, Inc. $ 240,590
*3,300 Cerner Corp. 224,301
*5,000 Electronic Arts, Inc 283,050
7,000 First Data Corp. 280,980
33,000 Microsoft Corp. 819,720
*54,000 Oracle Corp. 712,800
32,200 Siebel Systems, Inc. 286,580
2,848,021
Telecommunications - 2.7%
*23,000 Cisco Systems, Inc. 439,530
*5,000 Comverse Technology, Inc. 118,250
10,000 Harris Corp. 312,100
20,000 Motorola, Inc. 365,200
10,000 Qualcomm, Inc. 330,100
1,565,180
Textiles - 0.6%
*4,000 Mohawk Industries, Inc. 330,000
Transportation - 0.5%
6,700 CSX Corp. 285,822
Total Common Stocks
(Cost $49,392,231) (a) $53,215,137
COMMERCIAL PAPER - 7.2%
PRINCIPAL AMOUNT
1,200,000 Int'l Lease Finance 3.030%
Due 07/06/05 1,199,490
650,000 National Rural Utilities 3.240%
Due 07/21/05 648,830
2,300,000 Merrill Lynch & Co. 3.240%
Due 07/26/05 2,294,825
4,143,145
VARIABLE DEMAND NOTES - 1.0%
PRINCIPAL AMOUNT
424,900 American Family Financial
Services Co. - 2.949% 424,900
145,500 Wisconsin Corp. Central
Credit Union - 3.000% 145,500
570,400
Total Short-Term Investments - 8.2% $4,713,545
Total Investments - 101.2% 57,928,682
(Cost $54,105,776) (a)
Other Net Assets Less Liabilities - (1.2%) (704,020)
Net Assets - 100% $57,224,662
(a) Cost is identical for book and tax purposes; the
aggregate gross unrealized appreciation is $4,371,078
and aggregate gross unrealized depreciation is $548,172,
resulting in net unrealized appreciation of $3,822,906.
(b) American Depository Receipt (ADR).
(c) Right (RT) - security giving the holder entitlement to
purchase new shares issued by the corporation, at a
specified price within a specified period of time.
See accompanying notes to financial statements.
*Non-income producing security.
<Page 13>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Select Technology Fund
COMMON STOCKS - 97.8% Value
NUMBER OF SHARES
Computers - 13.8%
*800 Apple Computer, Inc. $ 29,448
*1,000 Dell, Inc. 39,510
1,000 Electronic Data Systems Corp. 19,250
*3,000 EMC Corp. 41,130
1,000 Hewlett-Packard Co. 23,510
*600 Network Appliance, Inc. 16,962
*600 SanDisk Corp. 14,238
*600 Sungard Data Systems, Inc. 21,102
205,150
Electronics - 1.6%
*800 Jabil Circuit, Inc. 24,584
Electronic Components-Semiconductors - 18.1%
*1,500 Altera Corp. 29,730
*500 Broadcom Corp. - CL A 17,755
2,000 Intel Corp. 52,120
800 Microchip Technology, Inc. 23,696
2,000 Micron Technology, Inc. 20,420
2,000 National Semiconductor Corp. 44,060
*1,000 NVIDIA Corp. 26,720
1,500 Texas Instruments, Inc. 42,105
500 Xilinx, Inc. 12,750
269,356
Internet - 11.2%
*1,000 Check Point Software Technologies Ltd 9,800
*800 eBay, Inc. 26,407
*50 Google, Inc. - CL A 14,708
*2,000 Symantec Corp. 43,480
*1,000 VeriSign, Inc. 28,760
*1,000 Yahoo! Inc. 34,650
167,805
Media - 2.2%
*2,000 Time Warner, Inc. 33,420
Office/Business Equipment - 0.9%
*1,000 Xerox Corp. 13,790
Semiconductor Components-
Integrated Circuits - 8.7%
1,000 Analog Devices, Inc. 37,310
500 Linear Technology Corp. 18,345
*1,000 Marvell Technology Group Ltd 38,040
500 Maxim Integrated Products, Inc. 19,105
1,808 Taiwan Semiconductor Mfg
Co. Ltd - SP ADR (b) 16,490
129,290
Semiconductor Equipment - 3.0%
2,000 Applied Materials, Inc. $ 32,360
300 KLA-Tencor Corp. 13,110
45,470
Software - 17.6%
1,000 Adobe Systems, Inc. 28,620
*1,000 BMC Software, Inc. 17,950
*1,000 Citrix Systems, Inc. 21,660
*400 Electronic Arts, Inc. 22,644
450 First Data Corp. 18,063
300 Infosys Technologies
Ltd - SP ADR (b) 23,241
2,000 Microsoft Corp. 49,680
*2,000 Oracle Corp. 26,400
400 SAP AG - SP ADR (b) 17,320
1,000 Satyam Computer Services
- SP ADR (b) 26,000
1,200 Siebel Systems, Inc. 10,680
262,258
Telecommunications - 20.7%
*3,000 Cisco Systems, Inc. 57,330
*1,000 Comverse Technology, Inc. 23,650
1,700 Corning, Inc. 28,254
1,000 Ericsson (LM) Telephone
- SP ADR (b) 31,950
*800 Juniper Networks, Inc. 20,144
*10,000 Lucent Technologies, Inc. 29,100
2,500 Motorola, Inc. 45,650
1,000 Nokia Corp. - SP ADR (b) 16,640
1,200 Qualcomm, Inc. 39,612
500 Scientific-Atlanta, Inc. 16,635
308,965
Total Common Stocks
(Cost $1,244,312) (a) $1,460,088
<Page 14>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Select Technology Fund (Continued)
VARIABLE DEMAND NOTES - 5.4%
PRINCIPAL AMOUNT
37,400 American Family Financial
Services Co. - 2.949% 37,400
42,500 Wisconsin Corp. Central
Credit Union - 3.000% 42,500
79,900
Total Investments - 103.2% 1,539,988
(Cost $1,324,212) (a)
Other Net Assets Less Liabilities - (3.2%) (47,463)
Net Assets - 100% $1,492,525
(a) Cost is identical for book and tax purposes; the
aggregate gross unrealized appreciation is $260,917
and aggregate gross unrealized depreciation is $45,141
resulting in net unrealized appreciation of $215,776.
(b) American Depository Receipt (ADR).
See accompanying notes to financial statements.
*Non-income producing security.
Monetta Mid-Cap Equity Fund
COMMON STOCKS - 96.1% Value
NUMBER OF SHARES
Agriculture - 0.5%
500 Monsanto Co. $ 31,435
Airlines - 0.8%
4,000 Southwest Airlines Co. 55,720
Apparel - 3.2%
*1,000 Coach, Inc. 33,570
1,000 Nike, Inc. - CL B 86,600
*2,000 Quiksilver, Inc. 31,960
1,500 Reebok Int'l Ltd 62,745
214,875
Auto Parts & Equipment - 0.8%
1,000 BorgWarner, Inc. 53,670
Banks - 1.6%
1,500 Zions Bancorporation 110,295
Biotechnology - 2.9%
*2,000 Celgene Corp. 81,540
*1,000 Genentech, Inc. 80,280
*3,000 Human Genome Sciences, Inc. 34,740
196,560
Building Materials - 1.8%
2,000 American Standard Companies, Inc. 83,840
1,000 York Int'l Corp. 38,000
121,840
Chemicals - 1.9%
2,000 RPM Int'l, Inc. 36,520
2,000 The Sherwin-Williams Co. 94,180
130,700
Coal - 0.8%
1,000 Arch Coal, Inc. 54,470
Commercial Services - 3.2%
2,000 McKesson Corp. 89,580
*1,000 Pharmaceutical Product 46,860
Development, Inc.
6,000 The ServiceMaster Co. 80,340
216,780
<Page 15>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Mid-Cap Equity Fund (Continued)
NUMBER OF SHARES Value
Computers - 1.4%
*1,500 Computer Sciences Corp. $ 65,550
*1,000 Network Appliance, Inc. 28,270
93,820
Diversified Financial Services - 5.3%
1,000 Capital One Financial Corp. 80,010
500 The Chicago Mercantile Exchange 147,750
*7,000 E*TRADE Financial Corp. 97,930
500 Freddie Mac 32,615
358,305
Electric - 4.5%
2,000 Ameren Corp. 110,600
*10,000 Calpine Corp. 34,000
5,000 CenterPoint Energy, Inc. 66,050
1,000 DTE Energy Co. 46,770
1,000 FirstEnergy Corp. 48,110
305,530
Electrical Component & Equipment - 0.7%
2,000 American Power Conversion Corp. 47,180
Electronics - 1.5%
*1,000 Fisher Scientific Int'l, Inc. 64,900
2,000 PerkinElmer, Inc. 37,800
102,700
Entertainment - 1.6%
1,000 Int'L Speedway Corp.- CL A 56,260
*1,500 Penn National Gaming, Inc. 54,750
111,010
Food - 0.8%
*5,000 Del Monte Foods Co. 53,850
Hand/Machine Tools - 1.3%
1,000 Black & Decker Corp. 89,850
Healthcare-Products - 2.1%
*500 Idexx Laboratories, Inc. 31,165
*1,000 Immucor, Inc. 28,950
*1,000 St. Jude Medical, Inc. 43,610
800 Stryker Corp. 38,048
141,773
Healthcare-Services - 8.3%
*2,000 AMERIGROUP Corp. $ 80,400
*1,000 Community Health Systems, Inc. 37,790
*1,000 Coventry Health Care, Inc. 70,750
*1,000 Davita, Inc. 45,480
*1,200 Health Net, Inc. 45,792
*2,000 Laboratory Corp. of America Holdings 99,800
2,000 Quest Diagnostics, Inc. 106,540
*3,000 Tenet Healthcare Corp. 36,720
*800 Triad Hospitals, Inc. 43,712
66,984
Home Builders - 0.7%
1,333 D.R. Horton, Inc. 50,134
Home Furnishings - 1.2%
1,000 Harman Int'l Industries, Inc. 81,360
Insurance - 3.7%
1,000 Ace Ltd 44,850
1,000 MBIA, Inc. 59,310
2,000 SAFECO Corp. 108,680
1,000 The St. Paul Travelers Companies, Inc. 39,530
252,370
Internet - 6.1%
*3,000 eBay, Inc. 99,030
*2,000 McAfee, Inc. 52,360
*5,000 Symantec Corp. 108,700
*3,000 VeriSign, Inc. 86,280
*2,000 Yahoo! Inc. 69,300
415,670
Leisure Time - 0.8%
1,000 Carnival Corp. 54,550
Lodging - 4.5%
1,000 Boyd Gaming Corp. 51,130
1,500 Harrah's Entertainment, Inc. 108,105
2,000 Hilton Hotels Corp. 47,700
500 Marriott Int'l - CL A 34,110
1,000 Station Casinos, Inc. 66,400
307,445
<Page 16>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Mid-Cap Equity Fund (Continued)
NUMBER OF SHARES Value
Media - 3.9%
*5,000 Liberty Media Corp. - CL A $ 50,950
3,000 Pearson PLC - SP ADR (b) 35,640
7,000 The Reader's Digest Association, Inc. 115,500
*2,000 XM Satellite Radio Holdings, Inc. - CL A 67,320
269,410
Metal Fabricate/ Hardware - 0.7%
2,000 Commercial Metals Co. 47,640
Miscellaneous Manufacturing - 1.4%
*1,000 Actuant Corp. - CL A 47,940
1,000 SPX Corp. 45,980
93,920
Oil & Gas - 6.3%
2,000 PetroKazakhstan, Inc. - CL A 73,160
1,000 Suncor Energy, Inc. 47,320
2,500 Valero Energy Corp. 197,775
3,333 XTO Energy, Inc. 113,289
431,544
Pharmaceuticals - 6.6%
*2,000 Amylin Pharmaceuticals, Inc. 41,860
*1,000 Barr Pharmaceuticals, Inc. 48,740
*3,000 Caremark RX, Inc. 133,560
*5,000 Eyetech Pharmaceutical, Inc. 63,200
*2,000 IVAX Corp. 43,000
1,000 Omnicare, Inc. 42,430
*500 Sepracor, Inc. 30,005
*2,000 VCA Antech, Inc. 48,500
451,295
REITS - 0.9%
800 First Industrial Realty Trust, Inc. 31,920
1,000 LaSalle Hotel Properties 32,810
64,730
Retail - 3.7%
1,000 CVS Corp. 29,070
*1,000 Electronics Boutique Holdings Corp. 63,490
*2,000 Starbucks, Corp. 103,320
*1,000 Urban Outfitters, Inc. 56,690
252,570
Software - 2.6%
*1,333 Activision, Inc. $ 22,021
1,000 Autodesk, Inc. 34,370
*2,000 The Dun & Bradstreet Corp. 179,691
Telecommunications - 5.1%
3,000 Corning, Inc. 49,860
*4,000 Juniper Networks, Inc. 100,720
*1,000 NII Holdings, Inc. 63,940
2,000 Qualcomm, Inc. 66,020
*3,000 Telewest Global, Inc. 68,340
348,880
Toys/Games/Hobbies - 2.5%
5,000 Hasbro, Inc. 103,950
3,500 Mattel, Inc. 64,050
168,000
Transportation - 0.4%
500 Overseas Shipholding Group, Inc. 29,825
Total Common Stocks
(Cost $5,610,099) (a) $6,556,381
<Page 17>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Mid-Cap Equity Fund (Continued)
VARIABLE DEMAND NOTES - 4.1%
PRINCIPAL AMOUNT
123,100 American Family Financial
Services Co. - 2.949% $ 123,100
155,900 Wisconsin Corp. Central
Credit Union - 3.000% 155,900
279,000
Total Investments - 100.2% 6,835,381
(Cost $5,889,099) (a)
Other Net Assets Less Liabilities - (0.2%) (10,309)
Net Assets - 100% $6,825,072
(a) Cost is identical for book and tax purposes; the
aggregate gross unrealized appreciation is $1,009,496
and aggregate gross unrealized depreciation is $63,214,
resulting in net unrealized appreciation of $946,282.
(b) American Depository Receipt (ADR).
See accompanying notes to financial statements.
*Non-income producing security.
Monetta Blue Chip Fund
COMMON STOCKS - 100.1% Value
NUMBER OF SHARES
Agriculture - 9.5%
700 Altria Group, Inc. $ 45,262
500 Bunge Ltd 31,700
500 Monsanto Co. 31,435
108,397
Biotechnology - 2.7%
*500 Amgen, Inc. 30,230
Cosmetics/Personal Care - 2.3%
500 Proctor & Gamble Co. 26,375
Diversified Financial Services - 13.3%
500 American Express Co. 26,615
1,000 Citigroup, Inc. 46,230
1,000 J.P. Morgan Chase & Co. 35,320
800 Merrill Lynch & Co., Inc. 44,008
152,173
Healthcare-Products - 4.6%
800 Johnson & Johnson 52,000
Healthcare-Services - 7.1%
*1,000 Humana, Inc. 39,740
800 UnitedHealth Group, Inc. 41,712
81,452
Media - 8.3%
*2,000 Comcast Corp. - CL A 61,400
*2,000 Time Warner, Inc. 33,420
94,820
Miscellaneous Manufacturing - 8.6%
2,000 General Electric Co. 69,300
1,000 Tyco Int'l Ltd 29,200
98,500
Oil & Gas - 10.6%
600 Apache Corp. 38,760
500 Burlington Resources, Inc. 27,620
*1,000 Transocean, Inc. 53,970
120,350
Oil & Gas Services - 4.2%
1,000 Halliburton Co. 47,820
<Page 18>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Blue Chip Fund (Continued)
NUMBER OF SHARES Value
Pharmaceuticals - 3.9%
*1,000 Caremark RX, Inc. $ 44,520
Retail - 10.0%
1,000 CVS Corp. 29,070
1,000 Home Depot, Inc. 38,900
1,000 Walgreen Co. 45,990
113,960
Semiconductors - 6.8%
3,000 Intel Corp. 78,180
Telecommunications - 8.2%
*3,000 Cisco Systems, Inc. 57,330
2,000 Motorola, Inc. 36,520
93,850
Total Common Stocks
(Cost $970,069) (a) $1,142,627
Total Investments - 100.1% 1,142,627
(Cost $970,069) (a)
Other Net Assets Less Liabilities - (0.1%) (1,249)
Net Assets - 100% $1,141,378
(a) Cost is identical for book and tax purposes; the
aggregate gross unrealized appreciation is $184,264
and aggregate gross unrealized depreciation is $11,706,
resulting in net unrealized appreciation of $172,558.
See accompanying notes to financial statements.
*Non-income producing security.
Monetta Balanced Fund
COMMON STOCKS - 52.7% Value
NUMBER OF SHARES
Banks - 1.3%
1,000 Wachovia Corp. $ 49,600
Beverages - 0.7%
500 PepsiCo, Inc. 26,965
Building Materials - 0.8%
1,000 Masco Corp. 31,760
Computers - 3.9%
1,500 Electronic Data Systems Corp. 28,875
2,000 Hewlett-Packard Co. 47,020
*2,000 NCR Corp. 70,240
146,135
Diversified Financial Services - 5.1%
700 American Express Co. 37,261
500 CIT Group, Inc. 21,485
1,000 Citigroup, Inc. 46,230
*3,000 E*TRADE Financial Corp. 41,970
1,320 J.P. Morgan Chase & Co. 46,623
193,569
Electric - 1.2%
1,500 Duke Energy Corp. 44,595
Engineering & Construction - 0.8%
500 Fluor Corp. 28,795
Food - 1.3%
1,000 Campbell Soup Co. 30,770
1,000 Sara Lee Corp. 19,810
50,580
Healthcare-Products - 1.7%
1,000 Johnson & Johnson 65,000
Healthcare-Services - 2.6%
1,000 HCA, Inc. 56,670
*600 WellPoint, Inc. 41,784
98,454
Home Furnishings - 0.9%
500 Whirlpool Corp. 35,055
<Page 19>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Balanced Fund (Continued)
Value
NUMBER OF SHARES
Household Products/ Wares - 1.2%
500 Fortune Brands, Inc. 44,400
Insurance - 2.6%
1,000 SAFECO Corp. 54,340
500 The Chubb Corp. 42,805
97,145
Media - 7.4%
*2,000 Comcast Corp. - CL A 61,400
1,000 EchoStar Communications Corp. - CL A 30,150
*4,000 Liberty Media Corp. - CL A 40,760
2,000 News Corp. Inc. - CL A 32,360
2,000 The Walt Disney Co. 50,360
*4,000 Time Warner, Inc. 66,840
281,870
Miscellaneous Manufacturing - 1.4%
1,500 General Electric Co. 51,975
Office/Business Equipment - 0.8%
700 Pitney Bowes, Inc. 30,485
Oil & Gas - 2.6%
500 ChevronTexaco Corp. 27,960
500 Unocal Corp. 32,525
1,066 XTO Energy, Inc. 36,233
96,718
Oil & Gas Services - 2.2%
1,000 Baker Hughes, Inc. 51,160
500 Smith Int'l, Inc. 31,850
83,010
Pharmaceuticals - 5.6%
800 Abbott Laboratories 39,208
1,000 Bristol-Myers Squibb Co. 24,980
1,000 Cardinal Health, Inc. 57,580
1,000 Pfizer, Inc. 27,580
1,000 Schering-Plough Corp. 19,060
1,000 Wyeth 44,500
212,908
Retail - 2.4%
1,000 Home Depot, Inc. 38,900
1,000 McDonald's Corp. 27,750
1,000 The TJX Companies, Inc. 24,350
91,000
Semiconductors - 1.8%
1,500 Intel Corp. 39,090
1,000 Texas Instruments, Inc. 28,070
67,160
Telecommunications - 2.5%
*2,000 Cisco Systems, Inc. 38,220
3,000 Motorola, Inc. 54,780
93,000
Transportation - 1.9%
500 FedEx Corp. 40,505
500 Union Pacific Corp. 32,400
72,905
Total Common Stocks $1,993,084
(Cost $1,799,921) (a)
<Page 20>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Balanced Fund (Continued)
CORPORATE BONDS - 27.8% MATURITY DATE MARKET VALUE
PRINCIPAL AMOUNT
Auto - 0.5%
20,000 Daimlerchrysler NA Holding Co. 4.875% 06/15/10 $ 19,908
Banks - 2.8%
25,000 Bank One Corp. 6.875% 08/01/06 25,721
25,000 Royal Bank of Scotland Group PLC 9.118% 03/31/49 29,774
25,000 Washington Mutual, Inc. 5.625% 01/15/07 25,551
25,000 Wells Fargo & Co. 5.125% 02/15/07 25,413
106,459
Cable TV - 0.3%
10,000 Cox Communications, Inc. 3.875% 10/01/08 9,789
Chemicals - 0.4%
15,000 Chevron Phillips Chemical Co. 5.375% 06/15/07 15,289
Computers - 0.5%
20,000 Hewlett-Packard Co. 3.625% 03/15/08 19,735
Electric - 6.9%
20,000 Alabama Power Co. 2.800% 12/01/06 19,666
15,000 CILCorp, Inc. 8.700% 10/15/09 17,378
20,000 Constellation Energy Group 6.125% 09/01/09 21,278
15,000 DPL, Inc. 6.875% 09/01/11 16,200
15,000 Duke Energy Corp. 7.375% 03/01/10 16,776
15,000 Firstenergy Corp. 5.500% 11/15/06 15,257
15,000 FPL Group Capital, Inc. 6.125% 05/15/07 15,533
15,000 MidAmerican Energy Holdings 3.500% 05/15/08 14,618
20,000 Nisource Finance Corp. 7.625% 11/15/05 20,262
25,000 Pepco Holdings, Inc. 6.450% 08/15/12 27,279
25,000 Progress Energy, Inc. 6.750% 03/01/06 25,426
15,000 Southern CA Edison 6.375% 01/15/06 15,186
15,000 TXU Energy Co. 7.000% 03/15/13 16,729
20,000 Wisconsin Electric Power 3.500% 12/01/07 19,689
261,277
Energy - 2.4%
25,000 Conoco Funding Co. 6.350% 10/15/11 27,682
20,000 Consolidated Natural Gas 5.375% 11/01/06 20,306
25,000 Transocean, Inc. 6.625% 04/15/11 28,080
15,000 Valero Energy Corp. 7.375% 03/15/06 15,293
91,361
Finance - 5.7%
20,000 American General Finance 2.750% 06/15/08 19,109
15,000 Boeing Capital Corp. 5.650% 05/15/06 15,235
25,000 Citigroup, Inc. 6.250% 05/15/06 25,483
25,000 Countrywide Home Loan 5.500% 08/01/06 25,376
15,000 General Electric Capital Corp. 8.625% 06/15/08 16,751
25,000 General Motors Acceptance Corp 6.125% 09/15/06 25,018
25,000 Household Finance Corp. 7.875% 03/01/07 26,472
<Page 21>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Balanced Fund (Continued)
PRINCIPAL AMOUNT MATURITY DATE MARKET VALUE
25,000 National Rural Utilities 6.000% 05/15/06 $ 25,449
20,000 Pemex Finance Ltd 9.030% 02/15/11 22,473
15,000 SLM Corp. 3.500% 09/30/06 14,855
216,221
Food/Beverages - 1.1%
20,000 Campbell Soup Co. 6.900% 10/15/06 20,690
20,000 Diageo Capital plc 3.375% 03/20/08 19,620
40,310
Forestry - 0.2%
9,000 Weyerhaeuser Co. 6.125% 03/15/07 9,253
Insurance - 1.2%
15,000 GE Global Insurance Holdings 7.500% 06/15/10 16,681
25,000 Reinsurance Group of America 6.750% 12/15/11 27,788
44,469
Medical - 0.4%
15,000 Quest Diagnostic, Inc. 6.750% 07/12/06 15,382
Mortgage/Asset Backed - 0.9%
30,000 Bear Stearns Commercial Mortgage
Securities, Inc. 6.440% 06/16/30 31,732
Multimedia - 0.5%
16,000 Time Warner Cos, Inc. 8.180% 08/15/07 17,212
Regional Authority - 1.5%
25,000 Province of British Columbia 4.300% 05/30/13 25,310
25,000 Quebec Province 7.125% 02/09/24 32,611
57,921
Regional Malls - 0.4%
15,000 Simon Property Group LP 6.875% 10/27/05 15,135
Telephone - 2.1%
10,000 Deutsche Telekom Int'l Finance 8.000% 06/15/10 11,589
15,000 France Telecom 7.750% 03/01/11 17,407
25,000 New Cingular Wireless Services 7.350% 03/01/06 25,547
25,000 Verizon Pennsylvania 5.650% 11/15/11 26,090
80,633
Total Corporate Bonds $1,052,086
(Cost $1,038,562) (a)
<Page 22>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Balanced Fund (Continued)
MATURITY DATE MARKET VALUE
U.S. Government Agencies - 5.8%
PRINCIPAL AMOUNT
50,000 Federal Home Loan Mortgage Corp. 5.250% 01/15/06 50,378
100,000 Private Export Funding 5.685% 05/15/12 109,185
60,000 Tennessee Valley Authority 4.700% 07/15/33 61,043
Total U.S. Government Agencies 220,606
(Cost $216,413) (a)
TREASURY NOTES - 8.8%
PRINCIPAL AMOUNT
80,000 U.S. Treasury Note 3.375% 10/15/09 78,875
140,000 U.S. Treasury Note 6.500% 11/15/26 183,023
65,000 U.S. Treasury Note 4.750% 05/15/14 68,971
Total Treasury Notes 330,869
(Cost $306,097) (a)
U.S. TREASURY STRIPS - 0.8%
PRINCIPAL AMOUNT
*60,000 U.S. Treasury Strip 0.000% 11/15/22 28,122
Total U.S. Treasury Strips 28,122
(Cost $24,326) (a)
VARIABLE DEMAND NOTES - 4.3%
PRINCIPAL AMOUNT
31,100 American Family Financial Services Co. - 2.949% 31,100
131,500 Wisconsin Corp. Central Credit Union - 3.000% 131,500
Total Variable Demand Notes 162,600
Total Investments - 100.2% 3,787,367
(Cost $3,547,919) (a)
Other Net Assets Less Liabilities - (0.2%) (8,245)
Net Assets - 100% $3,779,122
(a) Cost is identical for book and tax purposes; the aggregate gross
unrealized appreciation is $266,245 and aggregate gross unrealized
depreciation is $26,797 resulting in net unrealized appreciation of $239,448.
See accompanying notes to financial statements.
*Non-income producing security.
<Page 23>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Intermediate Bond Fund
CORPORATE BONDS - 72.6% MATURITY DATE MARKET VALUE
PRINCIPAL AMOUNT
Auto - 0.8%
75,000 Daimlerchrysler NA Holding Co. 4.875% 06/15/10 $ 74,655
Banks - 7.3%
150,000 Bank One Corp. 6.875% 08/01/06 154,327
175,000 Royal Bank of Scotland Group PLC 9.118% 03/31/49 208,414
125,000 Washington Mutual, Inc. 5.625% 01/15/07 127,756
165,000 Wells Fargo & Co. 5.125% 02/15/07 167,728
658,225
Mortgage/Asset Backed - 2.1%
180,000 Bear Stearns Commercial Mortgage
Securities, Inc. 6.440% 06/16/30 190,394
Cable TV - 2.4%
90,000 Cox Communications, Inc. 3.875% 10/01/08 88,104
125,000 TCI Communications, Inc. 6.875% 02/15/06 127,044
215,148
Chemicals - 1.2%
110,000 Chevron Phillips Chemical Co. 5.375% 06/15/07 112,123
Computers - 1.1%
100,000 Hewlett-Packard Co. 3.625% 03/15/08 98,673
Electric - 15.3%
100,000 Alabama Power Co. 2.800% 12/01/06 98,330
135,000 CILCorp, Inc. 8.700% 10/15/09 156,403
100,000 Constellation Energy Group 6.125% 09/01/09 106,389
110,000 DPL, Inc. 6.875% 09/01/11 118,800
135,000 Duke Energy Corp. 7.375% 03/01/10 150,987
135,000 Firstenergy Corp. 5.500% 11/15/06 137,313
110,000 FPL Group Capital, Inc. 6.125% 05/15/07 113,910
50,000 MidAmerican Energy Holdings 3.500% 05/15/08 48,726
125,000 Pepco Holdings, Inc. 6.450% 08/15/12 136,394
100,000 PSEG Power LLC 6.875% 04/15/06 102,076
100,000 TXU Energy Co. 7.000% 03/15/13 111,523
105,000 Wisconsin Electric Power 3.500% 12/01/07 103,369
1,384,220
Energy - 5.7%
150,000 Conoco Funding Co. 6.350% 10/15/11 166,095
100,000 Consolidated Natural Gas 5.375% 11/01/06 101,531
125,000 Transocean, Inc. 6.625% 04/15/11 140,398
100,000 Valero Energy Corp. 7.375% 03/15/06 101,951
509,975
<Page 24>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Intermediate Bond Fund (Continued)
MATURITY DATE MARKET VALUE
PRINCIPAL AMOUNT
Finance - 14.3%
100,000 American General Finance 2.750% 06/15/08 $ 95,543
129,000 Boeing Capital Corp. 5.650% 05/15/06 131,024
125,000 Washington Mutual (Citigroup, Inc.) 6.250% 05/15/06 127,417
125,000 Countrywide Home Loan 5.500% 08/01/06 126,878
160,000 General Electric Capital Corp. 8.625% 06/15/08 178,673
100,000 General Motors Acceptance Corp 6.125% 09/15/06 100,072
125,000 Household Finance Corp. 7.875% 03/01/07 132,360
115,000 National Rural Utilities 6.000% 05/15/06 117,066
155,000 Pemex Finance Ltd 9.030% 02/15/11 174,169
115,000 SLM Corp. 3.500% 09/30/06 113,890
1,297,092
Food/Beverages - 2.2%
100,000 Campbell Soup Co. 6.900% 10/15/06 103,448
100,000 Diageo Capital plc 3.375% 03/20/08 98,101
201,549
Insurance - 4.3%
172,000 GE Global Insurance Holdings 7.500% 06/15/10 191,277
175,000 Reinsurance Group of America 6.750% 12/15/11 194,511
385,788
Medical - 1.1%
100,000 Quest Diagnostic, Inc. 6.750% 07/12/06 102,547
Regional Authority - 1.1%
100,000 Province of British Columbia 4.300% 05/30/13 101,240
Special Purpose Entity - 4.7%
411,000 Trains-BBB - 5- 2002 6.554% (b) 08/15/08 422,311
Telephone - 9.0%
95,000 AT&T Corp. 7.750% 03/01/07 100,018
125,000 Deutsche Telekom Int'l Finance 8.000% 06/15/10 144,867
135,000 France Telecom 7.750% 03/01/11 156,664
125,000 New Cingular Wireless Services 7.350% 03/01/06 127,732
125,000 Sprint Capital Corp. 6.000% 01/15/07 128,093
150,000 Verizon Pennsylvania 5.650% 11/15/11 156,538
813,912
<Page 25>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Intermediate Bond Fund (Continued)
MATURITY DATE MARKET VALUE
PRINCIPAL AMOUNT
Total Corporate Bonds $6,567,852
(Cost $6,473,427) (a)
U.S. GOVERNMENT AGENCIES - 10.8%
PRINCIPAL AMOUNT
60,000 Federal Home Loan Bank 2.875% 05/22/06 59,539
260,000 Federal Home Loan Mortgage Corp. 5.250% 01/15/06 261,966
600,000 Private Export Funding 5.685% 05/15/12 655,109
Total U.S. Government Agencies 976,614
(Cost $968,029) (a)
TREASURY NOTES - 15.2%
PRINCIPAL AMOUNT
1,160,000 U.S. Treasury Note 4.750% 05/15/14 1,230,869
150,000 U.S. Treasury Note 3.375% 10/15/09 147,891
Total Treasury Notes
(Cost $1,365,541) (a) 1,378,760
VARIABLE DEMAND NOTES - 1.4%
PRINCIPAL AMOUNT
123,500 Wisconsin Corp. Central Credit Union - 3.000% 123,500
Total Investments - 100.0% 9,046,726
(Cost $8,930,497) (a)
Other Net Assets Less Liabilities (1,905)
Net Assets - 100% $9,044,821
(a) Cost is identical for book and tax purposes; the aggregate gross unrealized
appreciation is $153,611 and aggregate gross unrealized depreciation is $37,382
resulting in net unrealized appreciation of $116,229.
(b) Represents a restricted security purchased under Rule 144A which is exempt
from registration under the Securities Act of 1933, as amended. This security
has been deemed liquid by the investment manager based on procedures approved
by the Board of Trustees.
See accompanying notes to financial statements.
<Page 26>
Schedule of Investments (Unaudited) June 30, 2005
Monetta Government Money Market Fund
FEDERAL FARM CREDIT VALUE
DISCOUNT NOTE - 11.8%
PRINCIPAL AMOUNT
290,000 2.950%, Due 07/07/05 $289,857
FEDERAL HOME LOAN BANK - 38.5%
PRINCIPAL AMOUNT
250,000 3.090%, Due 07/13/05 249,742
700,000 3.120%, Due 07/27/05 698,423
948,165
FEDERAL NATIONAL MORTGAGE ASSOC. - 49.0%
PRINCIPAL AMOUNT
645,000 3.030%, Due 07/20/05 643,969
565,000 3.210%, Due 08/10/05 562,985
1,206,954
Total Investments - 99.3% 2,444,976
(Cost $2,444,976) (a)
Other Net Assets Less Liabilities - 0.7% 18,024
Net Assets - 100% $2,463,000
(a) Cost is identical for book and tax purposes.
See accompanying notes to financial statements.
<Page 27>
Statements Of Assets And Liabilities June 30, 2005
(In Thousands, Except Per Share) (Unaudited)
Select Mid-Cap Blue Intermediate Government
Monetta Technology Equity Chip Balanced Bond Money Market
Fund Fund Fund Fund Fund Fund Fund
Assets:
Investments at
market value, except
for the Government
Money Market Fund
which is at amortized
cost
(cost: $54,106; $1,324;
$5,889; $970; $3,548;
$8,931; $2,445) $57,929 $1,540 $6,835 $1,143 $3,787 $9,047 $2,445
Cash 193 (a) 7 0 13 8 14
Receivables:
Interest and dividends 50 1 3 1 23 110 0
Investments sold 0 238 0 132 0 0 0
Other assets 3 7 5 (a) 0 6 8
_____________________________________________________________________________________________________________
Total Assets 58,175 1,786 6,850 1,276 3,823 9,171 2,467
_____________________________________________________________________________________________________________
Liabilities:
Payables:
Custodian bank 0 0 0 121 0 0 0
Investment advisory fees
(Note 2) 43 1 4 1 1 3 0
Distribution and service
charges payable 0 1 5 1 3 7 0
Investments purchased 818 279 0 0 21 103 0
Fund shares redeemed 0 0 0 0 2 0 0
Income distribution
payable 0 0 0 0 4 0 0
Accrued expenses 89 12 16 12 13 13 4
_____________________________________________________________________________________________________________
Total Liabilities 950 293 25 135 44 126 4
_____________________________________________________________________________________________________________
Net Assets 57,225 1,493 6,825 1,141 3,779 9,045 2,463
_____________________________________________________________________________________________________________
Analysis of net assets:
Paid in capital (b) 71,270 3,043 11,583 4,254 5,197 9,416 2,463
Accumulated
undistributed net
investment income
(loss) (99) (35) (39) (31) (5) (33) 0
Accumulated undistributed
net realized
gain (loss) (17,769) (1,731) (5,665) (3,255) (1,652) (454) 0
Net unrealized appreciation
on investments 3,823 216 946 173 239 116 0
_____________________________________________________________________________________________________________
Net Assets $57,225 $1,493 $6,825 $1,141 $3,779 $9,045 $2,463
_____________________________________________________________________________________________________________
Shares of capital
stock 5,185
Shares of beneficial
interest issued
outstanding 201 935 190 352 891 2,463
Net asset value,
offering price and
redemption price per
share $11.04 $7.43 $7.30 $5.99 $10.72 $10.15 $1.00
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
(b) Monetta Fund - $52 of $.01 par value and $71,218 of additional paid in
capital, 100 million shares authorized. Each fund of Monetta Trust has an
unlimited number of no par value shares of beneficial interest authorized.
<Page 28>
Statements Of Operations June 30, 2005
(In Thousands) (Unaudited)
Select Mid-Cap Blue Intermediate Government
Investment income and Monetta Technology Equity Chip Balanced Bond Money Market
expenses: Fund Fund Fund Fund Fund Fund Fund
Investment income:
Interest $49 $(a) $4 $1 $37 $210 $35
Dividend 328 3 36 9 15 0 0
_____________________________________________________________________________________________________________________
Total investment
Income 377 3 40 10 52 210 35
_____________________________________________________________________________________________________________________
Expenses:
Investment advisory
fee (Note 2) 260 5 25 6 8 16 3
Distribution expense
(Note 6) 0 2 9 2 5 12 1
Accounting Expense 15 1 3 1 2 2 (a)
Admin/Compliance
Expense 15 1 3 1 2 2 (a)
Custodial fees and bank
cash management fee 14 1 4 1 2 2 1
State registration 9 7 7 7 7 8 13
Transfer and
shareholder
servicing agent fee 104 10 13 11 11 14 7
Audit/Tax Service 27 9 9 9 9 3 0
Legal 24 1 3 1 2 4 1
Printing 15 2 3 2 2 2 1
Other 5 (a) 1 (a) 1 0 (a)
_____________________________________________________________________________________________________________________
Total expenses 488 39 80 41 51 65 27
Expenses waived
/reimbursed 0 0 0 0 0 0 (18)
Fees paid indirectly
(Note 7) (12) (1) (1) (a) (1) 0 0
_____________________________________________________________________________________________________________________
Expenses net of waived,
reimbursed
expenses and fees
paid indirectly 476 38 79 41 50 65 9
_____________________________________________________________________________________________________________________
Net investment
income (loss) (99) (35) (39) (31) 2 145 26
_____________________________________________________________________________________________________________________
Realized and unrealized
gain (loss)
on investments:
Realized gain on
investments:
Proceeds from sales 55,836 497 6,158 1,391 1,828 2,062 13,095
Cost of securities
sold 53,318 560 5,843 1,346 1,726 2,065 13,095
_____________________________________________________________________________________________________________________
Net realized gain
(loss) on
investments 2,518 (63) 315 45 102 (3) 0
Gains from class
action lawsuits 2,280 52 49 (a) 10 35 0
_____________________________________________________________________________________________________________________
Total net realized
gain (loss)
on investments 4,798 (11) 364 45 112 32 0
_____________________________________________________________________________________________________________________
Net unrealized
appreciation
(depreciation) on
investments:
Beginning of period 5,228 282 1,109 201 363 148 0
End of period 3,823 216 946 173 239 116 0
_____________________________________________________________________________________________________________________
Net change in net
unrealized
appreciation
(depreciation)
on investments
during the period (1,405) (66) (163) (28) (124) (32) 0
_____________________________________________________________________________________________________________________
Net realized and
unrealized gain
(loss) on
investments 3,393 (77) 201 17 (12) 0 0
Net increase (decrease)
in net assets from
operations $3,294 $(112) $162 $(14) $(10) $145 $26
_____________________________________________________________________________________________________________________
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
<Page 29>
Statements Of Changes In Net Assets
(In Thousands)
For Six Months Ended June 30, 2005 (Unaudited) and Year Ended
December 31, 2004
<CAPATION>
Select Mid-Cap
Monetta Technology Equity
Fund Fund Fund
2005 2004 2005 2004 2005 2004
From investment activities:
Operations:
Net investment income (loss) $(99) $70 $(35) $(47) $(39) $(72)
Net realized gain (loss)
on investments 4,798 917 (11) 84 364 16
Net change in net unrealized
appreciation (depreciation) on
investments during the period (1,405) (371) (66) (109) (163) 8
_____________________________________________________________________________________________________________________
Net increase (decrease) in net
assets from operations 3,294 616 (112) (72) 162 (48)
Distribution from net
investment income 0 (70) 0 0 0 0
Distribution from net
realized gains 0 0 0 0 0 0
_____________________________________________________________________________________________________________________
Increase (decrease) in net assets
from investment activities 3,294 546 (112) (72) 162 (48)
_____________________________________________________________________________________________________________________
From capital transactions
(Note 3):
Proceeds from shares sold 638 1,047 103 129 202 420
Net asset value of shares issued
through dividend reinvestment 0 69 0 0 0 0
Cost of shares redeemed (4,893) (7,537) (160) (411) (785) (1,480)
_____________________________________________________________________________________________________________________
Increase (decrease) in net assets
from capital transactions (4,255) (6,421) (57) (282) (583) (1,060)
_____________________________________________________________________________________________________________________
Total increase (decrease)
in net assets (961) (5,875) (169) (354) (421) (1,108)
_____________________________________________________________________________________________________________________
Net assets at beginning of period 58,186 64,061 1,662 2,016 7,246 8,354
Net assets at end of period $57,225 $58,186 $1,493 $1,662 $6,825 $7,246
_____________________________________________________________________________________________________________________
Accumulated undistributed
net investment income $0 $0 $0 $0 $0 $0
_____________________________________________________________________________________________________________________
See accompanying notes to financial statements.
(a) Rounds to less than $1,000.
<Page 30>
Blue Intermediate Government
Chip Balanced Bond Money Market
Fund Fund Fund Fund
2005 2004 2005 2004 2005 2004 2005 2004
From investment activities:
Operations:
Net investment
income (loss) $(31) $(35) $2 $27 $145 $383 $26 $29
Net realized
gain (loss)
on investments 45 44 112 357 32 445 0 0
Net change in
net unrealized
appreciation
(dereciation)
on investments
during the
period (28) (52) (124) (170) (32) (477) 0 0
_______________________________________________________________________________________________________
Net increase
(decrease) in
net assets
from operations (14) (43) (10) 214 145 351 26 29
Distriubtion from
net investment
income 0 0 (7) (27) (178) (383) (26) (29)
Distribution from
net realized
gains 0 0 0 0 0 (216) 0 0
_______________________________________________________________________________________________________
Increase (decrease)
in net assets from
investments
activities (14) (43) (17) 187 (33) (248) 0 0
_______________________________________________________________________________________________________
From capital transactions
(Note 3):
Proceeds from
shares sold 43 115 239 180 1,089 2,127 465 1,163
Net asset value
of shares
issued through
dividend
reinvestment 0 0 7 26 154 518 26 28
Cost of shares
redeemed (539) (387) (401) (958) (1,823) (11,790) (1,176) (1,673)
_______________________________________________________________________________________________________
Increase (decrease)
in net assets from
capital transactions (496) (272) (155) (752) (580) (9,145) (685) (482)
_______________________________________________________________________________________________________
Total increase
(decrease) in net
assets (510) (315) (172) (565) (613) (9,393) (685) (482)
_______________________________________________________________________________________________________
Net assets at
beginning of period 1,651 1,966 3,951 4,516 9,658 19,051 3,148 3,630
Net assets at end
of period $1,141 $1,651 $3,779 $3,951 $9,045 $9,658 $2,463 $3,148
_______________________________________________________________________________________________________
Accumulated undistributed
net investment income $0 $0 $0 $0 $0 $(a) $0 $0
_______________________________________________________________________________________________________
<Page 31>
Notes To Financial Statements June 30, 2005
1. SIGNIFICANT ACCOUNTING POLICIES:
Monetta Fund, Inc. (Monetta Fund) is an open-end diversified
management investment company registered under the Investment
Company Act of 1940 (the 1940 Act), as amended. The objective
of the Monetta Fund is capital appreciation by investing primarily
in equity securities believed to have growth potential. The Fund
presently invests primarily in growth companies of all market
capitalization ranges.
Monetta Trust (the Trust) is an open-end diversified management
investment company registered under the Investment Company Act of 1940
(the 1940 Act), as amended. The following funds are series of the
Trust:
Select Technology Fund. The primary objective of this Fund is capital
appreciation. The Fund invests at least 80% of its assets in common
stocks of technology-related companies. There is no limit on the
market capitalization of the companies the Fund may invest in.
Mid-Cap Equity Fund. The primary objective of this Fund is
long-term capital growth by investing in common stocks believed
to have above average growth potential. The Fund typically invests
in companies within a market capitalization range of $1 billion
to $10 billion.
Blue Chip Fund. The primary objective of this Fund is to seek
long-term capital growth by investing in common stocks believed to
have above average growth potential. The Fund typically invests
in companies with a market capitalization of greater than $10
billion. On June 10, 2005 the Fund closed, and on July 29, 2005
all assets were liquidated.
Balanced Fund. The objective of this Fund is to seek a favorable
total rate of return through capital appreciation and current income
consistent with preservation of capital, derived from investing in
a portfolio of equity and fixed income securities.
Intermediate Bond Fund. The objective of this Fund is to seek
high current income consistent with the preservation of capital by
investing primarily in marketable debt securities.
Government Money Market Fund. The primary objective of this Fund
is to seek maximum current income consistent with safety of capital
and maintenance of liquidity. The Fund invests in U.S. Government
securities maturing in thirteen months or less from the date of
purchase and repurchase agreements for U.S. Government securities.
U.S. Government securities include securities issued or guaranteed
by the U.S. Government or by its agencies or instrumentalities.
The Monetta Family of Mutual Funds is comprised of the Monetta Fund,
Inc. and each of the Trust Series and is collectively referred to as
the Funds. The following is a summary of significant accounting
policies followed by the Funds in the preparation of their financial
statements in accordance with accounting principles generally
accepted in the United States of America.
(a) Securities Valuation
Investments are stated at market value based on the last reported
sale price on national securities exchanges, or the NASDAQ Market,
on the last business day of the period. Listed securities and
securities traded on the over-the-counter markets that did not
trade on the last business day are valued at the mean between
closing bid and asked quotes provided by the exchange where
the security is principally traded, or at the NASDAQ official
closing prices if applicable. Debt securities are generally
valued on the basis of market quotations provided by pricing
services approved by the Boards. Long-term debt securities
for which market quotations are not readily available are
valued based on valuations provided by pricing services which
may employ electronic data processing techniques, including a
matrix system, to determine valuations. Short-term debt
securities for which market quotations are not readily
available are valued by use of a matrix prepared by the
Adviser based on quotations for comparable securities.
The difference between the cost and fair value of such
investments are reflected as unrealized appreciation or
depreciation. Debt securities, having maturities of 60 days
or less, are stated at amortized cost, which is substantially
equivalent to market value.
Securities held by the Government Money Market Fund are valued
utilizing the amortized cost method, permitted in accordance
with Rule 2(a)-7 under the 1940 Act, which amortizes discount
/premium on a constant basis to the maturity of the security.
Securities for which market quotations are not readily available
or are deemed unreliable are valued at their fair value in
accordance with procedures established by the Boards of
Directors and Trustees.
<Page 32>
Notes To Financial Statements June 30, 2005
(b) Use of Estimates
The preparation of financial statements, in conformity
with accounting principles generally accepted in the United
States of America, requires the Funds' management to make
estimates and assumptions that affect reported amounts
of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements
and the results of operations during the reporting period.
Actual results could differ from those estimates.
(c) General
Security transactions are accounted for on a trade date basis.
Daily realized gains and losses from security transactions are
reported on the first-in, first-out cost basis. Interest income
is recorded daily on the accrual basis and dividend income
on the ex-dividend date. Bond discount/premium is amortized
using the interest method and included in interest income,
where applicable.
(d) Federal Income Taxes
It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment
companies and to distribute substantially all of its taxable
income to its shareholders. Accordingly, no provision for
federal income taxes is required. It is the Board's intent
not to distribute any realized gains until the capital loss
carry forwards have been offset or expired.
The Funds intend to utilize provisions of the federal income
tax laws which allow them to carry a realized loss forward
for eight years following the year of the loss and offset
such losses against any future realized capital gains.
At December 31, 2004, the losses amounted to:
Amount of
Fund Loss Carryforward Will expire between
Monetta Fund $22,711,310 December 31, 2009 and December 31, 2010
Monetta Select Technology Fund $1,748,250 December 31, 2009 and December 31, 2010
Monetta Mid-Cap Equity Fund $6,072,508 December 31, 2009 and December 31, 2012
Monetta Blue Chip Fund $3,288,469 December 31, 2009 and December 31, 2010
Monetta Balanced Fund $1,749,883 December 31, 2009 and December 31, 2010
Net realized gains or losses differ for financial reporting and
tax purposes as a result of losses from wash sales and post
October 31 losses which are not recognized for tax purposes
until the first day of the following fiscal year.
(e) Distributions of Incomes and Gains
Distributions to shareholders are recorded by the Funds
(except for the Government Money Market Fund)
on the ex-dividend date. The Government Money Market Fund
declares dividends daily and automatically reinvests such
dividends daily. Due to inherent differences in the
characterization of short-term capital gains under accounting
principles generally accepted in the United States of America,
and for federal income tax purposes, the amount of distributable
net investment income for book and federal income tax
purposes may differ.
For federal income tax purposes, a net operating loss
recognized in the current year cannot be used to offset
future year's net investment income. For the year ended
December 31, 2004 the Monetta Select Technology
Fund, Monetta Mid-Cap Equity Fund and Monetta Blue Chip Fund
had net operating losses of $47,069, $71,938 and $34,643,
respectively, for tax purposes which were reclassified
from accumulated undistributed net investment income to capital.
<Page 33>
Notes To Financial Statements June 30, 2005
As of December 31, 2004, the components of distributable earnings
on a tax basis were as follows:
Select Mid-Cap Blue Intermediate Government
Monetta Technology Equity Chip Balanced Bond Money
Fund Fund Fund Fund Fund Fund Market Fund
___________________________________________________________________________________________________
Undistributed Ordinary
Income __ __ __ __ $11 $67 __
___________________________________________________________________________________________________
Undistributed Long-Term
Capital Gain __ __ __ __ __ $6,551 __
___________________________________________________________________________________________________
The tax character of distributions paid during the calendar
year ended December 31, 2004, were as follows:
Select Mid-Cap Blue Intermediate Government
Monetta Technology Equity Chip Balanced Bond Money
Fund Fund Fund Fund Fund Fund Market Fund
___________________________________________________________________________________________________
Ordinary Income $70,071 __ __ __ $26,429 $384,722 $28,516
___________________________________________________________________________________________________
Long-Term Capital Gain __ __ __ __ __ $216,049 __
___________________________________________________________________________________________________
2. RELATED PARTIES:
Robert S. Bacarella is an officer and director of the Funds and
also an officer, director and majority shareholder of the
investment adviser, Monetta Financial Services, Inc. (Adviser).
For the year ended December 31, 2004, renumerations required to
be paid to all interested directors or trustees has been absorbed
by the Adviser. Fees paid to outside Directors or Trustees have
been absorbed by the respective Funds.
Each Fund pays an investment advisory fee to the Adviser based
on that Fund's individual net assets, payable monthly, at the
following annual rate:
First $300 million in Next $200 million in Net assets over
net assets net assets $500 million
Monetta Fund 0.95% 0.90% 0.85%
Monetta Select Technology Fund 0.75% 0.70% 0.65%
Monetta Mid-Cap Equity Fund 0.75% 0.70% 0.65%
Monetta Blue Chip Fund 0.75% 0.70% 0.65%
Monetta Balanced Fund 0.40% of total net assets
Monetta Intermediate Bond Fund 0.35% of total net assets
Monetta Government Money Market Fund* 0.25% of total net assets
From these fees the Adviser pays for all necessary office
facilities, equipment and personnel for managing the assets
of each fund. In addition, the Adviser pays for all expenses
in determining the daily price computations, placement of
securities orders and related bookkeeping. Investment advisory
fees waived, and 12B-1 fees waived through June 30, 2005,
for the Government Money Market Fund, were $3,313 and $1,326,
respectively.
Accounting and Admin/Compliance Expenses reported on the
Statement of Operations were paid to Fund Services Group,
LLC, an affiliate of the Adviser and Sub-Adviser, as
approved by the respective Funds' Boards effective
October 1, 2004.
Monetta Financial Services, Inc., as of June 30, 2005,
owned 9,887 shares or 4.92% of the Select Technology
Fund and 11,226 shares or 3.18% of the Balanced Fund.
3. SUB-ADVISER:
Effective December 3, 2001, the Adviser entered into a
Sub-Advisory agreement with Ambassador Capital Management
LLC to manage the Intermediate Bond Fund, the Government
Money Market Fund and the fixed-income portion of the
Balanced Fund. The sub-advisory fees paid to
Ambassador Capital Management LLC by the Adviser,
for Net Assets in excess of $30 million are, Intermediate
Bond Fund, 0.10%; Balanced Fund, 0.10% (applies only to
the fixed-income portion of the portfolio); and the Government
Money Market Fund, 20% of the fee charged by the Adviser.
<Page 34>
Notes To Financial Statements June 30, 2005
4. CAPITAL STOCK AND SHARE UNITS:
There are 100,000,000 shares of $.01 par value capital stock
authorized for the Monetta Fund. There is an unlimited number
of no par value shares of beneficial interest authorized for
each series of the Trust.
Government
Select Mid-Cap Intermediate Money
Monetta Technology Equity Blue Chip Balanced Bond Market
Fund Fund Fund Fund Fund Fund Fund
2004 Beginning Shares 6,248,536 245,568 1,176,683 320,166 439,499 1,814,310 3,630,165
__________________________________________________________________________________________________________________
Shares sold 105,754 17,231 65,562 19,619 17,449 203,403 1,162,137
Shares issued upon
dividend reinvestment 6,611 0 0 0 2,495 50,151 28,316
Shares redeemed (761,382) (54,096) (224,417) (66,646) (92,510) (1,120,121) (1,672,817)
__________________________________________________________________________________________________________________
Net decrease
in shares outstanding (649,017) (36,865) (158,855) (47,027) (72,566) (866,567) (482,364)
2005 Beginning Shares 5,599,519 208,703 1,017,828 273,139 366,933 947,743 3,147,801
__________________________________________________________________________________________________________________
Shares sold 61,924 14,129 28,373 7,227 22,440 108,186 464,866
Shares issued upon
dividend reinvestment 0 0 0 0 698 15,190 25,840
Shares redeemed (476,542) (21,904) (111,595) (89,937) (37,588) (179,918) (1,175,507)
__________________________________________________________________________________________________________________
Net decrease
in shares outstanding (414,618) (7,775) (83,222) (82,710) (14,450) (56,542) (684,801)
Ending Shares 5,184,901 200,928 934,606 190,429 352,483 891,201 2,463,000
5. PURCHASES AND SALES OF INVESTMENT SECURITIES:
The cost of purchases and proceeds from sales of securities
for the six months ended June 30, 2005
excluding short-term securities were:
Proceeds from
Cost of Purchases Sales of Securities
Monetta Fund $ 53,320,922 $ 55,836,443
Monetta Select Technology Fund 442,123 497,480
Monetta Mid-Cap Equity Fund 5,399,586 6,157,904
Monetta Blue Chip Fund 907,846 1,390,878
Monetta Balanced Fund 1,569,738 1,828,330
Monetta Intermediate Bond Fund 1,940,793 2,062,252
The cost of purchases and proceeds from the sales of government
securities included in the preceding numbers were as follows:
Balanced Fund, $0 and $25,000; and Intermediate Bond Fund,
$1,032,846 and $1,375,534.
6. DISTRIBUTION PLAN:
The Trust and its shareholders have adopted a service and
distribution plan (the Plan) pursuant to Rule 12b-1 under the
Investment Company Act of 1940. The Plan permits the
participating Funds to pay certain expenses associated with
the distribution of their shares. Annual fees under the
Plan of up to 0.25% for the Select Technology, Mid-Cap,
Blue Chip, Balanced, and Intermediate Bond Funds and up to
0.10% for the Government Money Market Fund are accrued daily.
The distributor is Quasar Distributors, LLC.
7. Fees Paid Indirectly:
Various Fund expenses paid for indirectly through directed
brokerage agreements (soft dollars), such as legal, audit,
tax and printing, for the six months ended June 30, 2005,
are as follows: Monetta Fund, $12,009; Select Technology Fund,
$431; Mid-Cap Fund, $1,481; Blue Chip Fund, $457; Balanced Fund,
$867. Expenses not specific to a fund are allocated across all
the funds as a percent of net assets or number of shareholder
accounts, whichever is appropriate. Some of these expenses are
reported on the Other Expenses line of the Statement of Operations.
<Page 35>
Notes To Financial Statements June 30, 2005
Financial highlights for each fund of the Trust for a share
outstanding throughout the period are as follows:
MONETTA FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value
at beginning of period $10.391 $10.252 $7.885 $9.296 $11.779 $22.711
___________________________________________________________________________________________________________
Net investment income (loss) (0.018) 0.012 (0.052) (0.056) (0.013) (0.021)
Net realized and unrealized
gain (loss) on investments 0.664 0.139 2.419 (1.355) (2.470) (3.911)
___________________________________________________________________________________________________________
Total from investment
operations 0.646 0.151 2.367 (1.411) (2.483) (3.932)
___________________________________________________________________________________________________________
Less:
Distributions from net
investment income 0.000 (0.012) 0.000 0.000 0.000 (0.095)
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 0.000 (4.925)
Distributions from net
realized gains 0.000 0.000 0.000 0.000 0.000 (1.980)
___________________________________________________________________________________________________________
Total distributions 0.000 (0.012) 0.000 0.000 0.000 (7.000)
___________________________________________________________________________________________________________
Net asset value at
end of period $11.037 $10.391 $10.252 $7.885 $9.296 $11.779
___________________________________________________________________________________________________________
Total return 6.26% 1.49% 30.08% (15.27%) (21.05%) (15.97%)
Ratios to average net assets:
Expenses - Net 1.74% 1.43% 1.60% 1.65% 1.49% 1.32%
Expenses - Gross (a) 1.76% 1.60% 1.81% 1.80% 1.55% 1.32%
Net investment income (loss) (0.18%) 0.12% (0.59%) (0.66%) (0.12%) (0.09%)
Portfolio turnover 103.0% 385.8% 427.7% 609.1% 469.5% 353.8%
Net assets ($ thousands) 57,225 $58,186 $64,061 $56,401 $74,086 $103,437
(a) Gross Expense Ratio reflects fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 36>
Notes To Financial Statements June 30, 2005
Financial highlights for each fund of the Trust for a share
outstanding throughout the period are as follows:
SELECT TECHNOLOGY FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value
at beginning of period $7.964 $8.208 $5.398 $10.414 $13.450 $21.831
____________________________________________________________________________________________________________
Net investment income (loss) (0.173) (0.206) (0.264) (0.158) (0.125) (0.274)
Net realized and unrealized
gain (loss) on investments (0.363) (0.038) 3.074 (4.858) (2.875) (4.182)
____________________________________________________________________________________________________________
Total from investment
operations (0.536) (0.244) 2.810 (5.016) (3.000) (4.456)
____________________________________________________________________________________________________________
Less:
Distributions from net
investment income 0.000 0.000 0.000 0.000 0.000 0.000
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 (0.030) (3.160)
Distributions from net
realized gains 0.000 0.000 0.000 0.000 (0.006) (0.765)
____________________________________________________________________________________________________________
Total distributions 0.000 0.000 0.000 0.000 (0.036) (3.925)
____________________________________________________________________________________________________________
Net asset value at
end of period $7.428 $7.964 $8.208 $5.398 $10.414 $13.450
____________________________________________________________________________________________________________
Total return (6.66%) (3.05%) 52.04% (48.13%) (22.34%) (18.74%)
Ratios to average net assets:
Expenses - Net (a) 5.25% 3.23% 4.13% 2.50% 2.50% 1.95%
Expenses - Gross (b) 5.27% 4.07% 5.49% 5.27% 2.91% 1.95%
Net investment income (loss) (2.38%) (2.72%) (3.83%) (2.24%) (1.10%) (1.33%)
Portfolio turnover 29.8% 113.2% 112.8% 104.8% 472.1% 492.6%
Net assets ($ thousands) $1,493 $1,662 $2,016 $1,463 $3,068 $4,202
(a) The net expense ratio is after reimbursed and indirect expenses paid.
The expense ratio after reimbursed expenses but before indirect expenses paid
would be 4.36%, 3.21% and 2.53% for the years ended December 31, 2003,
December 31, 2002 and December 31, 2001, respectively. There were no
reimbursed expenses for the six months ended June 30, 2005 and for the year
ended December 31, 2004.
(b) Gross Expense Ratio reflects fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 37>
Notes To Financial Statements June 30, 2005
MID-CAP EQUITY FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value
at beginning of period $7.119 $7.100 $4.84 $6.670 $11.802 $20.355
_____________________________________________________________________________________________________
Net investment income (loss) (0.039) (0.064) (0.075) (0.074) (0.056) (0.119)
Net realized and unrealized
gain (loss) on investments 0.223 0.083 2.326 (1.747) (5.025) (2.704)
_____________________________________________________________________________________________________
Total from investment
operations 0.184 0.019 2.251 (1.821) (5.081) (2.823)
_____________________________________________________________________________________________________
Less:
Distributions from net
investment income 0.000 0.000 0.000 0.000 0.000 0.000
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 (0.039) (4.270)
Distributions from net
realized gains 0.000 0.000 0.000 0.000 (0.012) (1.460)
_____________________________________________________________________________________________________
Total distributions 0.000 0.000 0.000 0.000 (0.051) (5.730)
_____________________________________________________________________________________________________
Net asset value at
end of period $7.303 $7.119 $7.100 $4.849 $6.670 $11.802
_____________________________________________________________________________________________________
Total return 2.53% (0.28%) 46.39% (27.29%) (43.05%) (12.69%)
Ratios to average net assets:
Expenses - Net 2.33% 1.70% 1.78% 1.89% 1.45% 1.21%
Expenses - Gross (a) 2.35% 1.98% 2.11% 2.12% 1.58% 1.21%
Net investment income (loss) (0.56%) (0.97%) (1.25%) (1.31%) (0.71%) (0.56%)
Portfolio turnover 81.6% 311.1% 315.1% 235.8% 328.3% 194.6%
Net assets ($ thousands) $6,825 $7,246 $8,354 $5,540 $8,455 $16,284
(a) Gross Expense Ratio reflects fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 38>
Notes To Financial Statements June 30, 2005
BLUE CHIP FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value
at beginning of period $6.046 $6.142 $4.663 $6.707 $14.610 $20.062
____________________________________________________________________________________________________
Net investment income (loss) (0.117) (0.114) (0.160) (0.076) (0.154) (0.197)
Net realized and unrealized
gain (loss) on investments 0.065 0.018 1.639 (1.968) (7.729) (2.837)
____________________________________________________________________________________________________
Total from investment
operations (0.052) (0.096) 1.479 (2.044) (7.883) (3.034)
____________________________________________________________________________________________________
Less:
Distributions from net
investment income 0.000 0.000 0.000 0.000 0.000 0.000
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 0.000 (0.108)
Distributions from net
realized gains 0.000 0.000 0.000 0.000 (0.020) (2.310)
____________________________________________________________________________________________________
Total distributions 0.000 0.000 0.000 0.000 (0.020) (2.418)
____________________________________________________________________________________________________
Net asset value at
end of period $5.994 $6.046 $6.142 $4.663 $6.707 $14.610
____________________________________________________________________________________________________
Total return (0.99%) (1.47%) 31.76% (30.55%) (53.94%) (14.96%)
Ratios to average net assets:
Expenses - Net (a) 5.28% 3.37% 3.90% 2.50% 2.38% 1.61%
Expenses - Gross (b) 5.31% 4.24% 5.15% 4.75% 2.72% 1.61%
Net investment income (loss) (1.97%) (1.95%) (3.01%) (1.37%) (1.76%) (0.99%)
Portfolio turnover 61.5% 271.4% 252.2% 209.9% 394.1% 155.6%
Net assets ($ thousands) $1,141 $1,651 $1,966 $1,871 $3,023 $7,399
(a) The net expense ratio is after reimbursed and indirect expenses paid.
The expense ratio after reimbursed expenses but before indirect expenses paid
would be 4.11% and 3.13% for the years ended December 31, 2003 and
December 31, 2002, respectively. There were no reimbursed expenses
for the six months ended June 30, 2005 and for the years ended
December 31, 2004, 2001 and 2000.
(b) Gross Expense Ratio reflects fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 39>
Notes To Financial Statements June 30, 2005
BALANCED FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value
at beginning of period $10.767 $10.274 $8.660 $10.282 $12.813 $16.268
____________________________________________________________________________________________________
Net investment income (loss) 0.006 0.067 0.065 0.129 0.279 0.318
Net realized and unrealized
gain (loss) on investments (0.031) 0.493 1.617 (1.596) (2.504) (1.173)
____________________________________________________________________________________________________
Total from investment
operations (0.025) 0.560 1.682 (1.467) (2.225) (0.855)
____________________________________________________________________________________________________
Less:
Distributions from net
investment income (0.021) (0.067) (0.068) (0.155) (0.284) (0.310)
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 (0.007) (0.850)
Distributions from net
realized gains 0.000 0.000 0.000 0.000 (0.015) (1.440)
____________________________________________________________________________________________________
Total distributions (0.021) (0.067) (0.068) (0.155) (0.306) (2.600)
____________________________________________________________________________________________________
Net asset value at end of
period $10.721 $10.767 $10.274 $8.660 $10.282 $12.813
____________________________________________________________________________________________________
Total return (0.27%) 5.55% 19.45% (14.28%) (17.34%) (5.15%)
Ratios to average net assets:
Expenses - Net 2.59% 1.66% 1.66% 1.57% 1.10% 0.96%
Expenses - Gross (a) 2.61% 2.07% 2.05% 1.80% 1.23% 0.96%
Net investment income 0.06% 0.63% 0.69% 1.39% 2.58% 1.94%
Portfolio turnover 42.5% 148.6% 120.6% 131.1% 211.5% 167.4%
Net assets ($ thousands) $3,779 $3,951 $4,516 $4,318 $6,530 $9,208
(a) Gross Expense Ratio reflects fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 40>
Notes To Financial Statements June 30, 2005
INTERMEDIATE BOND FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value at
beginning of period $10.190 $10.500 $10.461 $9.993 $10.352 $10.244
_____________________________________________________________________________________________________
Net investment income 0.158 0.324 0.349 0.425 0.587 0.691
Net realized and unrealized
gain (loss) on investments (0.004) (0.079) 0.041 0.473 (0.121) 0.102
_____________________________________________________________________________________________________
Total from investment
operations 0.154 0.245 0.390 0.898 0.466 0.793
_____________________________________________________________________________________________________
Less:
Distributions from net
investment income (0.195) (0.325) (0.351) (0.430) (0.589) (0.685)
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 (0.163) 0.000
Distributions from net
realized gains 0.000 0.230 0.000 0.000 (0.073) 0.000
_____________________________________________________________________________________________________
Total distributions (0.195) (0.555) (0.351) (0.430) (0.825) (0.685)
_____________________________________________________________________________________________________
Net asset value at
end of period $10.149 $10.190 $10.500 $10.461 $9.993 $10.352
_____________________________________________________________________________________________________
Total return 1.54% 2.38% 3.78% 9.24% 4.44% 8.13%
Ratios to average net assets:
Expenses - Net 1.42% 1.19% 0.81% 0.76% 0.65% 0.57%
Expenses - Gross (a) 1.42% 1.19% 0.91% 0.84% 0.73% 0.69%
Net investment income 1.56% 2.98% 3.31% 4.21% 5.57% 6.82%
Portfolio turnover 13.8% 61.7% 75.7% 163.9% 263.0% 120.3%
Net assets ($ thousands) $9,045 $9,658 $19,051 $26,409 $32,857 $25,394
(a) Gross Expense Ratio reflects fees paid indirectly and any portion of the
management fee waived by the Adviser. Effective July 1, 2001, the Adviser
elected not to waive any portion of the management fee.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 41>
Notes To Financial Statements June 30, 2005
GOVERNMENT MONEY MARKET FUND
Six Months
Ended 6/30/05
(Unaudited) 2004 2003 2002 2001 2000
Net asset value at
beginning of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
_____________________________________________________________________________________________________
Net investment income 0.010 0.008 0.006 0.012 0.036 0.059
Net realized and unrealized
gain (loss) on investments 0.000 0.000 0.000 0.000 0.000 0.000
_____________________________________________________________________________________________________
Total from investment
operations 0.010 0.008 0.006 0.012 0.036 0.059
_____________________________________________________________________________________________________
Less:
Distributions from net
investment income (0.010) (0.008) (0.006) (0.012) (0.036) (0.059)
Distributions from short-term
capital gains, net 0.000 0.000 0.000 0.000 0.000 0.000
Distributions from net
realized gains 0.000 0.000 0.000 0.000 0.000 0.000
_____________________________________________________________________________________________________
Total distributions (0.010) (0.008) (0.006) (0.012) (0.036) (0.059)
_____________________________________________________________________________________________________
Net asset value at
end of period $1.000 $1.000 $1.000 $1.000 $1.000 $1.000
_____________________________________________________________________________________________________
Total return 1.00% 0.86% 0.56% 1.25% 3.67% 6.03%
Ratios to average net assets:
Expenses - Net (a) 0.64% 0.49% 0.56% 0.46% 0.38% 0.40%
Expenses - Gross (b) 1.31% 1.43% 1.58% 1.24% 1.09% 0.74%
Net investment income 0.99% 0.85% 0.56% 1.24% 3.61% 5.89%
Portfolio turnover N/A N/A N/A N/A N/A N/A
Net assets ($ thousands) $2,463 $3,148 $3,630 $4,075 $4,167 $4,501
(a) The net expense ratio is after reimbursed and indirect expenses paid. For
the Government Money Market Fund, the expense ratio after reimbursed expenses
but before indirect expenses paid would be 1.32%, 0.64% and 0.88% for the
years ended December 31, 2003, December 31, 2002 and December 31, 2001,
respectively. There were no indirect expenses paid for the six months ended
June 30, 2005 and the years ended December 31, 2004 and 2000.
(b) Ratios of expenses and net income adjusted to reflect investment advisory
fees and charges of the Trust's custodian and transfer agent assumed by the
investment advisor, as well as fees paid indirectly.
The per share ratios are calculated using the weighted average number of
shares outstanding during the period, except for distributions, which are
based on shares outstanding at record date.
<Page 42>
Directors/Trustees June 30, 2005
Name (Year Of Birth) Principal Occupation During Past 5 Years Other Directorships and
Position(s) Held with Fund Affiliations
Independent ("disinterested") Directors
John L. Guy (1952) Senior Vice President, & Executive Director,
Trustee since 1993 Wachovia Corp. (formerly First Union Nat'l Bank),
Director since 1998 Business Banking, General Bank Group, since
Nov. 1999; President, Heller Small Business Lending
Corporation (formerly Heller First Capital Corp.),
May 1995 to Nov. 1999.
Marlene Z. Hodges (1948) CFO, Abraham Lincoln Center since
Director and Trustee March 2003; Director of Finance Sears
since 2001 Roebuck & Company from 1970, retired
November 2001.
Mark F. Ogan (1942) Sr. Vice President & Chief Operating Officer, Director JMI-USA, Inc
Director since 1988 Rand McNally & Company, since July 2003; and Director Montini
Trustee since 1993 President, DuPage Capital Management, Ltd., Catholic High School.
since April 1995.
Inside ("interested") Directors
Robert S. Bacarella (1949) Chairman, Chief Executive Officer and Wheaton Police Pension
Director and President President since April 1997; Chairman and Board, 1994 to 2001.
since 1985 Chief Executive Officer of Adviser, 1996 to
Trustee and President 1997; President of the Adviser 1984 to 1996;
since 1993 Director of the Adviser since 1984.
John W. Bakos (1947) Division Placement Manager, Sears Roebuck
Director since 1985 & Co., since 1969.
Trustee since 1996
All of the above Directors/Trustees were elected by shareholders
at the December 3, 2001 Special Meeting of Monetta Fund, Inc. and Monetta Trust
to hold office until a successor is elected and qualified. Each Director
oversees the Monetta Fund and each Trustee oversees the six funds of the
Monetta Trust.
The address for each Director and Trustee is the Adviser's office.
<Page 43>
Monetta Family of Mutual Funds
1776-A South Naperville Road
Suite 100
Wheaton, IL 60187-8133
PRESORTED STANDARD
U.S. POSTAGE
PAID
CHICAGO, IL
PERMIT NO. 941