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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
REGISTRATION NO. 33-87498
811-08910
VINTAGE MUTUAL FUNDS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
1415 28th STREET, SUITE 200
WEST DES MOINES, IOWA 50266
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
AMY M. MITCHELL, TREASURER
VINTAGE MUTUAL FUNDS, INC.
1415 28th STREET, SUITE 200
WEST DES MOINES, IOWA 50266
(NAME AND ADDRESS OF AGENT FOR SERVICE)
COPIES OF ALL COMMUNICATIONS TO:
VERA LICHTENBERGER, ESQ. JOHN C. MILES, ESQ., DONALD F. BURT, ESQ.
VINTAGE MUTUAL FUNDS, INC. CLINE, WILLIAMS, WRIGHT, JOHNSON & OLDFATHER
1415 28th STREET, SUITE 200 1900 U.S. BANK BUILDING, 233 S. 13TH STREET
WEST DES MOINES, IOWA 50266 LINCOLN, NEBRASKA 68508
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (515) 244-5426
DATE OF FISCAL YEAR END: 03/31/2006
DATE OF REPORTING PERIOD: 09/30/2006
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMI-ANNUAL REPORT FOR THE PERIOD ENDING SEPTEMBER 30, 2006.
VINTAGE
MUTUAL FUNDS
SEMI-ANNUAL
REPORT
TO
SHAREHOLDERS
SEPTEMBER 30, 2006
TABLE OF CONTENTS
Performance Reports and Schedules of Portfolio Investments
Page 3
Statements of Assets and Liabilities
Page 23
Statements of Operations
Page 27
Statements of Changes in Net ssets
Page 29
Notes to Financial Statements
Page 38
Financial Highlights
Page 45
Additional Information
Page 51
SERVICE PROVIDERS
- -------------------------------------------------------
INVESTMENT ADVISER AND
ADMINISTRATOR
WB Capital Management
1415 28th Street, Suite 200
West Des Moines, Iowa 50266-1461
DISTRIBUTOR BISYS Fund
BISYS Fund Services Limited Partnership
3435 Stelzer Road
Columbus, Ohio 43219
LEGAL COUNSEL
Cline, Williams, Wright, Johnson & Oldfather, L.L.P.
1900 U.S. Bank Building
Lincoln, Nebraska 68508
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Deloitte & Touche LLP
1100 Walnut Street, Suite 3300
Kansas City, Missouri 64106
MESSAGE FROM THE INVESTMENT ADVISOR
Dear Valued Shareholder:
We are pleased to present this semi-annual report for the Vintage Mutual Funds
covering the six-month period from April 1, 2006 to September 30, 2006. This
report is prepared to provide you with information as to your Funds'
performance, commentary from your Funds' managers, my investment outlook as
President and Chief Investment Officer and a review of your Funds' expenses. We
encourage you to review this information and hope you will find it useful.
During the last six months the direction of the financial markets has remained
unclear. Bond yields moved higher in the second quarter of this calendar year on
inflation fears, only to retreat in the third quarter as softer signs of growth
surfaced. Meanwhile, the equity markets pulled back in May and June as the Fed
raised rates only to rise in August and September after the Fed signaled a pause
in monetary policy.
During this period, the Federal Reserve raised the Fed Funds target rate 25
basis points at each the May and June meetings only to pause thereafter.
Uncertainty surrounding the direction and timing of the Fed's next rate move
continues to cloud the bond and equity market.
Clearly the economy has slowed as the housing market has softened. However even
with slowing growth, inflation continues to concern investors as commodity
prices rise and wage growth expands. We are optimistic that growth will moderate
but not recess, and inflation will peak during 2007. This should provide an
attractive backdrop for the financial markets.
The Bond and Money Market Funds are positioned well for the current rate
environment. We remain cautious toward rising inflation and the potential impact
that may have on interest rates.
An exciting change we made to the fund family this period was the waiver in fees
on the Limited Term Bond Fund, the Bond Fund and the Municipal Bond Fund
resulting in the total expense ratio to 75 basis points each. This waiver will
continue to positively impact performance on an ongoing basis.
We are excited about the future for the Vintage Mutual Funds and want to thank
you for your continued support.
Sincerely,
/s/ Jeff Lorenzen
Jeff Lorenzen, CFA
President and Chief Investment Officer
WB Capital Management
The Vintage Mutual Funds are distributed by BISYS Fund Services Limited
Partnership.
Shares of the Vintage Mutual Funds are NOT INSURED BY THE FDIC and are not
deposits or obligations of, or guaranteed or endorsed by, West Bancorporation,
or any of its subsidiaries including WB Capital Management. Investment products
involve investment risk, including the possible loss of principal. Past
performance is not predictive of future results, and the composition of each
Fund's portfolio is subject to change.
INFORMATION NOT AUTHORIZED FOR DISTRIBUTION UNLESS ACCOMPANIED OR PRECEDED BY A
CURRENT PROSPECTUS.
2
PERFORMANCE REPORT
Vintage Money Market Funds
As the Federal Reserve paused in the third calendar quarter after 18 consecutive
rate hikes, bond market sentiment turned in favor of slowing economic growth.
Long-term interest rates fell and even the money market yield curve inverted
with overnight rates pegged around the Fed Funds target rate of 5.25 percent and
one year agency discount rates yielding 5.12 percent. The market expects the Fed
to begin cutting overnight rates in the first quarter of 2007, which seems a bit
ambitious. Although the declining housing market has clearly slowed overall
economic growth, inflation has remained stubbornly above the Fed's comfort zone
of 1.0 percent to 2.0 percent and the Fed will not be quick to cut rates in
light of the pressures from a tight labor market and strong corporate sector.
However, market expectations and the general peak of the Fed rate cycle have
encouraged us to begin positioning portfolios to take advantage of the eventual
rate decline.
Institutional Money Market Fund
The Fund's average days rose as longer bonds were purchased to lock in yields in
an environment where the Fed is on hold. The Fund ended the period with an
average days position comparable to the index and expects to establish an
average days position longer than the index as opportunity arises. The Fund is
currently adding agency paper in the nine to twelve month part of the curve
where rates appear most attractive given our outlook for the Fed.
Institutional Reserves Fund
The Fund's average days rose as longer bonds were purchased to lock in yields in
an environment where the Fed is on hold. The Fund ended the period with an
average days position longer than the index which it expects to maintain. The
Fund is currently adding agency paper in the nine to twelve month part of the
curve where rates appear most attractive given our outlook for the Fed.
Liquid Assets Fund
The Fund's average days rose as longer bonds were purchased to lock in yields in
an environment where the Fed is on hold. Very short corporate paper is
relatively rich reflecting strong corporate fundamentals, so the Fund is
currently adding corporate paper in the six to twelve month part of the curve
where paper is available and relative rates appear most attractive. The Fund
ended the period with an average days position longer than the index which it
expects to maintain.
Municipal Assets Fund
The Fund's average days rose as longer bonds were purchased to lock in yields in
an environment where the Fed is on hold. The Fund ended the period with an
average days position comparable to the index. The Fund is currently adding
municipal paper in the nine to twelve month part of the curve where rates appear
most attractive given our outlook for the Fed and expects to establish an
average days position longer than the index as opportunity arises.
AN INVESTMENT IN THE VINTAGE MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT OF $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
3
VINTAGE MUTUAL FUNDS, INC.
Instituional Money Market Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
U.S. GOVERNMENT AGENCIES (15.17%): Federal Farm Credit Bank:
1,000,000 5.085%**, 12/27/07......................... $ 999,720
Federal Home Loan Bank:
131,000 5.485%*, 10/18/06.......................... 130,671
167,000 5.486%*, 10/20/06.......................... 166,531
500,000 3.240%, 11/22/06........................... 498,379
200,000 3.375%, 12/15/06........................... 199,166
500,000 4.625%, 07/18/07........................... 497,815
475,000 4.750%, 08/17/07........................... 472,986
Federal Home Loan Mortgage Corporation:
1,000,000 2.750%, 10/15/06........................... 999,072
500,000 3.750%, 11/15/06........................... 499,106
500,000 2.500%, 12/04/06........................... 497,657
898,000 2.875%, 12/15/06........................... 893,527
1,500,000 3.625%, 02/15/07........................... 1,490,427
735,000 3.300%, 09/14/07........................... 722,081
Federal National Mortgage Association:
375,000 2.750%, 10/27/06........................... 374,325
500,000 2.625%, 11/15/06........................... 498,218
500,000 3.625%, 03/15/07........................... 496,153
-----------
Total U.S. Government Agencies............. 9,435,834
-----------
REPURCHASE AGREEMENTS (85.55%):
Barclays Capital:
16,000,000 5.280%, 10/02/06............................ $16,000,000
(Purchased on 09/29/06, proceeds at
maturity $16,007,040; Collateralized
by $16,000,000 Government Agencies,
10/05/06, market value $16,320,299)
Bear, Stearns & Company, Inc.:
20,000,000 5.370%, 10/02/06............................ 20,000,000
(Purchased on 09/29/06, proceeds at
maturity $20,008,950; Collateralized
by $20,938,095 Government Agencies,
10/01/31 - 09/01/36, market value
$20,401,569)
Seattle-Northwest Securities Corporation:
17,225,368 5.300%, 10/02/06..............................17,225,368
(Purchased on 09/29/06, proceeds at
maturity $17,232,976; Collateralized by
$17,446,000 Government Agencies,
01/12/07 - 04/12/08, market value
$17,569,901)
-------------
Total Repurchase Agreements.................. 53,225,368
-------------
Total Investment in Securities
(100.72%) (Cost $62,661,202).................$62,661,202
Other Assets & Liabilities (-0.72%).......... (447,879)
-------------
NET ASSETS (100.00%)........................ $62,213,323
=============
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill rate
4
VINTAGE MUTUAL FUNDS, INC.
Instituional Reserves Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
U.S. GOVERNMENT AGENCIES (41.05%)
Federal Farm Credit Bank
1,000,000 5.085%**, 12/27/07......................... $ 999,720
Federal Home Loan Bank
3,000,000 4.010%, 10/27/06........................... 2,996,809
360,000 4.470%, 10/30/06........................... 359,689
750,000 2.740%, 10/30/06........................... 748,448
480,000 3.150%, 12/15/06........................... 477,947
400,000 3.500%, 01/22/07........................... 397,359
500,000 2.615%, 02/07/07........................... 495,623
3,000,000 4.875%, 02/15/07........................... 2,992,477
1,000,000 3.050%, 03/28/07........................... 989,444
1,190,000 2.250%, 07/02/07........................... 1,163,812
1,000,000 4.625%, 07/18/07........................... 995,630
1,000,000 4.660%***, 09/06/07........................ 999,627
1,000,000 4.970%****, 11/21/07....................... 1,000,000
1,000,000 5.045%**, 11/28/07......................... 1,000,000
Federal Home Loan Mortgage Corporation
1,000,000 2.750%, 10/15/06........................... 999,044
662,000 5.469%*, 10/17/06.......................... 660,438
700,000 3.750%, 11/15/06........................... 698,750
400,000 3.000%, 11/17/06........................... 398,841
600,000 3.500%, 11/17/06........................... 598,404
1,000,000 2.500%, 12/04/06........................... 995,314
592,000 2.875%, 12/15/06........................... 589,223
500,000 3.125%, 12/27/06........................... 497,162
2,230,000 3.625%, 02/15/07........................... 2,215,756
500,000 4.800%, 02/20/07........................... 498,790
680,000 2.460%, 03/29/07........................... 669,895
1,000,000 4.125%, 04/02/07........................... 993,878
1,605,000 3.750%, 04/15/07........................... 1,591,744
275,000 4.500%, 05/17/07........................... 273,483
1,000,000 5.000%, 09/07/07........................... 998,757
Federal National Mortgage Association
250,000 5.554%*, 10/11/06.......................... 249,631
2,000,000 2.625%, 11/15/06........................... 1,992,906
600,000 2.710%, 01/30/07........................... 594,363
Federal National Mortgage Association (continued)
2,500,000 2.375%, 02/15/07........................... $ 2,472,740
1,000,000 3.625%, 03/15/07........................... 992,305
800,000 4.750%, 08/03/07........................... 796,813
Total U.S. Government Agencies............. 35,394,822
----------------
REPURCHASE AGREEMENTS (60.26%)
Bear, Stearns & Company, Inc.
18,000,000 5.370%, 10/02/06.......................... 18,000,000
(Purchased on 09/29/06, proceeds at
maturity $18,008,055; Collateralized
by $25,569,918 Government Agencies,
03/01/09 - 09/01/36, market value
$18,363,869)
Morgan Stanley and Company, Inc.
17,000,000 5.300%, 10/02/06......................... 17,000,000
(Purchased on 09/29/06, proceeds at
maturity $17,007,508; Collateralized
by $17,000,000 Government Agencies,
09/28/07 - 03/16/09, market value
$18,035,975)
Seattle-Northwest Securities Corporation
16,952,391 5.300%, 10/02/06...................... 16,952,391
----------------
(Purchased on 09/29/06, proceeds at
maturity $16,959,878; Collateralized
by $17,252,000 Government Agencies,
03/02/07 - 02/28/11, market value
$17,292,281)
----------------
Total Repurchase Agreements............ 51,952,391
----------------
Total Investment in Securities
(101.31%) (Cost $87,347,213)............ $ 87,347,213
Other Assets & Liabilities (-1.31%)..... (1,133,607)
----------------
NET ASSETS (100.00%)................... $ 86,213,606
================
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill rate
***Interest rate fluctuates monthly with 2-year US Treasury note
****Interest rate fluctuates monthly with 1-year US Treasury note
5
VINTAGE MUTUAL FUNDS, INC.
Liquid Assets Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
--------- ----------- -----
U.S. GOVERNMENT AGENCIES (10.59%)
Federal Farm Credit Bank
500,000 3.125%, 12/01/06................................. $ 498,016
Federal Home Loan Bank
175,000 2.375%, 10/30/06................................. 174,675
400,000 3.000%, 11/15/06................................. 399,091
1,000,000 4.230%, 11/28/06................................. 998,923
200,000 6.350%, 12/04/06................................. 200,486
300,000 2.555%, 12/05/06................................. 298,436
2,575,000 4.660%*****, 09/06/07............................ 2,574,038
2,000,000 4.970%******, 11/21/07........................... 2,000,000
1,000,000 5.045%**, 11/28/07............................... 1,000,000
Federal Home Loan Mortgage Corporation
1,000,000 2.750%, 10/15/06................................. 999,101
500,000 2.500%, 12/04/06................................. 497,388
1,000,000 2.875%, 12/15/06................................. 995,307
592,000 5.085%*, 02/06/07................................ 581,781
1,000,000 5.250%, 04/27/07................................. 999,972
Federal National Mortgage Association
1,000,000 3.000%, 12/29/06................................. 994,045
1,000,000 3.375%, 05/15/07................................. 987,740
------------
Total U.S. Government Agencies................... 14,198,999
------------
LOAN CERTIFICATES - FMHA GUARANTEED
LOAN CERTIFICATES (10.93%)
14,652,686 5.000% - 6.050%
11/16/06 - 03/11/45.............................. 14,652,686
------------
BANKERS ACCEPTANCE (0.29%)
First Tennessee
404,000 5.418%*, 02/22/07................................ 395,435
------------
COMMERCIAL PAPER (21.32%)
American Honda
603,000 5.251%*, 10/06/06................................ 602,562
1,000,000 5.261%*, 10/16/06................................ 997,817
1,000,000 5.283%*, 11/21/06................................ 992,591
Bank of America
749,000 5.266%*, 10/10/06................................ 748,017
700,000 5.339%*, 10/10/06................................ 699,074
COMMERCIAL PAPER (CONTINUED)
Barclays Funding
1,800,000 5.293%*, 11/21/06............................... 1,786,612
525,000 5.306%*, 12/07/06............................... 519,880
Citigroup Funding
1,000,000 5.356%*, 10/18/06............................... 997,497
1,000,000 5.290%*, 11/17/06............................... 993,159
Cooperative Association Tractor
698,000 5.480%*, 10/18/06............................... 696,220
850,000 5.527%*, 11/14/06............................... 844,359
639,000 5.288%*, 11/15/06............................... 634,822
742,000 5.603%*, 11/21/06............................... 736,240
Danske Corporation
800,000 5.283%*, 10/19/06............................... 797,896
500,000 5.286%*, 10/30/06............................... 497,885
1,000,000 5.286%*, 12/21/06............................... 988,255
General Electric Capital Corporation
1,200,000 5.275%*, 10/10/06............................... 1,198,425
800,000 5.263%*, 10/26/06............................... 797,094
900,000 5.308%*, 11/14/06............................... 894,225
National Rural Utilities
1,500,000 5.272%*, 10/25/06............................... 1,494,750
Paccar Financial
916,000 5.298%*, 11/27/06............................... 908,415
1,000,000 5.300%*, 12/13/06............................... 989,395
Southern Company
1,000,000 5.258%*, 10/02/06............................... 999,855
1,000,000 5.267%*, 10/11/06............................... 998,542
Three Rivers
1,000,000 5.275%*, 10/11/06............................... 998,542
902,000 5.282%*, 10/11/06............................... 900,682
1,000,000 5.281%*, 10/16/06............................... 997,808
UBS Finance
1,000,000 5.436%*, 10/11/06............................... 998,509
1,200,000 5.292%*, 10/24/06............................... 1,195,975
700,000 5.274%*, 11/09/06............................... 696,026
Wal-Mart Stores
1,000,000 5.274%*, 12/12/06............................... 989,580
-------------
Total Commercial Paper.......................... 4,040,061
-------------
6
VINTAGE MUTUAL FUNDS, INC.
Liquid Assets Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
--------- ----------- -----
CORPORATE BONDS (28.71%)
Aerospace - Defense
Boeing Company
1,500,000 6.875%, 11/01/06................................ $ 1,502,060
Banking & Financial
CIT Group, Inc.
2,000,000 7.375%, 04/02/07................................ 2,017,571
1,000,000 5.750%, 09/25/07................................ 1,004,853
HSBC USA Inc
1,500,000 8.375%, 02/15/07................................ 1,516,746
J P Morgan
2,000,000 5.500%, 03/26/07................................ 2,000,081
Suntrust Bank
1,000,000 2.500%, 11/01/06................................ 997,493
Wachovia Corporation
2,000,000 4.950%, 11/01/06................................ 2,000,073
Computer HardwarCIT Group, Inc.
Hewlett-Packard Company
2,000,000 5.750%, 12/15/06................................ 2,002,256
1,000,000 5.500%, 07/01/07................................ 1,001,231
IBM Corporation
1,250,000 4.875%, 10/01/06................................ 1,250,000
Electric Utility
Southern Company
3,000,000 4.875%, 07/15/07................................ 2,989,268
Financial Services
Bear Stearns Company
1,000,000 7.250%, 10/15/06................................ 1,000,786
1,000,000 5.410%****, 10/05/07............................ 1,000,000
Boeing Capital Corporation
2,300,000 5.750%, 02/15/07................................ 2,300,822
Caterpillar Financial Services
325,000 3.100%, 05/15/07................................ 320,289
1,665,000 4.875%, 06/15/07................................ 1,658,889
General Electric Capital Corporation
500,000 6.500%, 11/01/06................................ 500,334
CORPORATE BONDS (CONTINUED)
Financial Servies (continued)
Goldman Sachs Group
1,000,000 2.850%, 10/27/06............................... 998,679
Household Finance
1,000,000 5.750%, 01/30/07............................... 1,000,605
1,000,000 7.875%, 03/01/07............................... 1,008,785
Merrill Lynch & Citigroup, Inc.
1,655,000 5.615%*******, 01/26/07.......................... 1,655,609
1,000,000 3.000%, 04/30/07............................... 985,021
Morgan Stanley
2,000,000 5.800%, 04/01/07............................... 2,002,232
Insurance
United Health Care
3,000,000 5.200%, 01/17/07............................... 2,997,181
Miscellaneous
Kuehn Enterprises
970,000 5.270%***, 10/01/43............................ 970,000
Schneider Capital
1,805,000 5.270%***, 07/01/43............................ 1,805,000
-------------
38,470,000 Total Corporate Bonds.......................... 38,485,864
-------------
REPURCHASE AGREEMENTS (29.34%)
Bear, Stearns & Company, Inc.
22,000,000 5.370%, 10/02/06............................... 22,000,000
(Purchased on 09/29/06, proceeds at
maturity $22,009,845; Collateralized
by $29,256,378 Government Agencies,
11/01/18 - 05/01/36, market value
$22,441,181)
Seattle-Northwest Securities Corporation
17,330,931 5.300%, 10/02/06.............................. 17,330,931
(Purchased on 09/29/06, proceeds at maturity
$17,338,585; Collateralized by $17,600,000
Government Agencies, 01/26/07 - 03/03/08,
market value $17,678,456)
-------------
Total Repurchase Agreements.................. 39,330,931
-------------
Total Investment in Securities
(101.18%) (Cost $135,654,624)............... $ 135,654,624
Other Assets & Liabilities (-1.18%)......... (1,581,086)
-------------
NET ASSETS (100.00%)........................ $ 134,073,538
=============
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill rate
*** Variable rate, put option subject to no longer than 7-day settlement
**** Interest rate fluctuates monthly with Libor
***** Interest rate fluctuates monthly with 2-year US Treasury note
****** Interest rate fluctuates monthly with 1-year US Treasury note
******* Interest rate fluctuates quarterly with Libor
7
VINTAGE MUTUAL FUNDS, INC.
Municipal Assets Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
MUNICIPAL BONDS (99.74%)
Arizona (2.59%)
400,000 Apache County, AZ Development
3.720%***, 12/15/18................................$ 400,000
California (1.30%)
200,000 Riverside County, CA
3.680%***, 12/01/15................................ 200,000
Colorado (0.65%)
100,000 LaPlata County, CO School District
3.710%*, 11/01/06.................................. 99,689
Delaware (5.19%)
800,000 Delaware Economic Development
3.700%***, 12/01/15................................ 800,000
Florida (1.13%)
175,000 Nassau County, FL PCR
3.750%***, 10/01/08................................ 175,000
Georgia (5.19%)
500,000 Municipal Electric Authority,
GA Commerical Paper
3.470%****, 10/05/06............................... 500,000
300,000 Marietta, GA Housing
3.760%***, 07/01/24................................ 300,000
Hawaii (6.49%)
1,000,000 ABN AMRO MuniTOPS, HI
3.790%***, 07/01/12................................ 1,000,000
Iowa (5.74%)
100,000 Iowa Finance Hospital Facility
3.770%***, 07/01/13................................ 100,000
785,000 Iowa Finance West Foundation
Project
3.760%***, 01/01/32................................ 785,000
Illinois (11.01%)
150,000 Cook County, IL School District #14
3.350%, 12/01/06................................... 150,050
315,000 LaSalle County School District, IL
5.900%, 12/01/06................................... 316,224
Illinois (continued)
130,000 Metropolitan Pier & Exposition
Authority, IL
6.000%, 12/15/06................................... 130,597
200,000 Illinois State, G.O.
5.000%, 01/01/07................................... 200,672
300,000 Illinois Health NW Hospital
3.800%***, 08/15/25................................ 300,000
600,000 Illinois Development Finance
Authority
3.750%***, 12/01/28................................ 600,000
Indiana (3.89%)
600,000 Indianapolis, IN
3.750%***, 02/01/20................................ 600,000
Kentucky (1.59%)
245,000 Kentucky Rural Water
4.250%, 02/01/07................................... 245,358
Maryland (1.30%)
200,000 Maryland Health & Higher Education
3.720%***, 10/01/37................................ 200,000
Michigan (3.24%)
500,000 University of Michigan Commercial Paper
3.480%****, 10/04/06............................... 500,000
Minnesota (1.30%)
200,000 Kimball, MN Independent School District #739
4.000%, 09/24/07.................................. 200,466
Nebraska (2.92%)
450,000 Nebraska Educational Finance
Authority
3.940%**, 12/15/35................................. 450,000
New Hampshire (0.97%)
150,000 New Hampshire Health & Education
3.700%***, 06/01/23................................ 150,000
New Jersey (2.66%)
400,000 New Jersey Economic Development
8.625%, 11/01/06................................... 409,573
8
VINTAGE MUTUAL FUNDS, INC.
Municipal Assets Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
--------- ----------- -----
New Mexico (2.59%)
400,000 Las Cruces, NM Gross Receipts
Tax Revenue
3.500%, 06/01/07...................................$ 399,211
New York (4.54%)
CIT Group, Inc.New York, NY Series H3
3.720%***, 03/01/34................................ 700,000
North Dakota (1.30%)
200,000 Grand Forks, ND
5.125%, 12/01/06................................... 200,527
Ohio (8.11%)
50,000 Ohio State University
3.740%***, 12/01/21................................ 50,000
500,000 Warren County, OH
3.780%***, 07/01/23................................ 500,000
400,000 CIT Group, Inc.
3.940%**, 09/01/25................................. 400,000
300,000 Ohio State University
3.740%***, 12/01/31................................ 300,000
Pennsylvania (9.57%)
225,000 Erie County, PA Hospital
3.810%**, 05/15/20................................. 225,000
100,000 Delaware County, PA Development
3.860%**, 04/01/21................................. 100,000
300,000 New Castle, PA Hospital
3.830%***, 07/01/26................................ 300,000
450,000 Philadelphia, PA IDR
3.810%**, 03/01/27................................. 450,000
100,000 Pennsylvania State University
3.760%***, 04/01/31................................ 100,000
100,000 Chester County, PA Development
3.810%**, 07/01/31................................. 100,000
200,000 Allegheny County PA Development
3.800%***, 08/01/32................................ 200,000
Texas (3.24%)
100,000 Pearland, TX Independent School District
3.000%, 02/15/07................................... 99,702
400,000 Harris County, TX IDR
3.780%***, 02/01/20................................ 400,000
Virginia (0.65%)
100,000 Citigroup, Inc.
4.500%, 10/01/06................................... 100,000
Washington (6.58%)
200,000 Seattle, WA Refunding
3.000%, 10/01/06................................... 200,000
115,000 Port Vancouver, WA Series 84-B
3.750%***, 12/01/09................................ 115,000
700,000 Lake Tapps Parkway, WA
3.790%***, 12/01/19................................ 700,000
Wisconsin (0.81%)
125,000 Fond du Lac, WI
3.750%, 05/01/07................................... 125,146
Wyoming (5.19%)
800,000 Sweetwater County, WY Commercial Paper
3.500%****, 11/03/06............................... 800,000
------------
Total Municipal Bonds............................. 15,377,215
------------
MUTUAL FUNDS (0.79%)
121,822 AIM Institutional Tax Free Cash
Reserve, 3.507%**, 10/02/06 $ 121,822
------------
Total Investment in Securities
(100.53%) (Cost $15,449,037).................... $15,499,037
Other Assets & Liabilities (-0.53%)............. ($82,027)
------------
NET ASSETS (100.00%)............................ $15,417,010
============
*Effective Yield at date of purchase
**Variable rate, put option subject to next day settlement
***Variable rate, put option subject to no longer than 7-day settlement
****Tax Exempt Commercial Paper-Interest Bearing at Maturity (Rollover Eligible)
9
PERFORMANCE REPORT
Vintage Fixed Income Funds
During the past six months, intermediate interest rates moved lower and equity
markets advanced. Intermediate interest rates dropped as economic growth
downshifted to a lower gear. Real GDP growth dropped to a slightly below
potential rate of 2.6 percent in the second quarter from a 5.6 percent rate in
the first quarter. As a result of the slower economic growth trajectory, equity
markets moved higher as the Standard & Poor's 500 index advanced 4.14 percent
while the fixed income markets kept pace with total returns of 3.73 percent for
the Lehman Aggregate index. Interest rates fell on the expectations that a
slower pace of growth will reduce inflationary pressures and the threat of
further rate increases by the Fed. The ten-year U.S. Treasury rate fell 0.22
percent to finish the period at 4.63 percent.
The Federal Reserve met four times during the period. At the May and June
meetings, the Fed raised the Fed funds rate each meeting by 0.25 percent.
Following the August and September meetings, the Fed funds rate was left
unchanged at 5.25 percent. The pause at the August meeting marked the first
break by the Federal Reserve since 2004. Following a cumulative 4.25 percent in
rate increases, the market is now anticipating a quick turnaround on Fed policy.
The Fed funds futures market indicates an easing in policy as early as first
quarter 2007. These bullish fixed income expectations are based on slowing
economic growth which will relieve inflationary pressures. These expectations
placed a downward bias on intermediate interest rates throughout the summer of
2006.
The Fed continues to walk a tight line on its dual mandate of full employment
and low inflation. Inflation continues to run above the Fed's desired range of
1.0 - 2.0 percent as measured by the core PCE index. Inflation readings most
recently measured 2.5 percent. Inflation continues to remain elevated while high
capacity utilization (82.4 percent) and low unemployment (4.7 percent) indicate
inflationary pressures from businesses and labor are not immediately poised to
recede. Labor costs have been rising at an increasing rate during the past year
and are a significant component of overall inflation. The Fed has indicated it
will remain vigilant on inflation.
Interest rates moved in a `twist' pattern over the past six months. Three month
T-bills moved higher by 0.27 percent in sympathy with the Fed's two interest
rate hikes. Longer-term interest rates told a different story. Two-year notes
declined 0.13 to 4.68 percent while ten-year notes fell 0.22 to 4.63 percent.
The result is an inverted yield curve where longer term Treasuries provide less
income than short term notes. Many market prognosticators suggested that this
minor inversion meant an impending recession, yet we are much more optimistic
about the economic outlook despite movements in the Treasury market. Economic
growth is expected to slip below potential, but this adds some much needed slack
to the system and prevents further, more dramatic increases in inflation.
Our fixed income strategy is guided by our central forecast of both the economy
and the markets. Our economic forecast is for moderate growth approximating 3.0
percent per quarter for the next four quarters. Job growth will average 100,000
jobs per month resulting in a stable unemployment rate of 4.8 percent and
capacity utilization remaining at or above 82 percent. Core inflation is
expected to remain elevated above the desired 1.0 - 2.0 percent range.
Expectations are for the Fed to leave the Fed funds rate unchanged at 5.25
percent well into 2007. As the Fed was slow to raise rates throughout the past
two years, we believe their actions to ease will also be prolonged. Short
interest rates will continue to be supported by the Fed funds rate. As the
market sees the economy make consistent progress and inflation remains elevated,
we anticipate intermediate interest rates will rise back towards the 5.0 percent
area.
In summary, we see the economy to be on solid footing and expect the Federal
Reserve to remain vigilant on the risk of inflation. The portfolios are
defensively positioned for a stable or higher interest rate environment with a
focus on capital preservation.
10
PERFORMANCE
Report Vintage Limited Term Bond Fund
Fixed income total returns were higher during the past six months as interest
rates fell and bond prices rose, providing capital appreciation in addition to
the Fund's income benefits. The two-year Treasury fell 0.13 percent to finish
the period with a yield of 4.68 percent. For the period, the Vintage Limited
Term Bond Fund outperformed its benchmark before expenses, yet trailed after
expenses.
The Federal Reserve's interest rate increase campaign paused midway through the
period at 5.25 percent. During the four meetings during the period, the Fed
raised the Fed funds rate at only the first two meetings. Following a cumulative
4.25 percent in rate increases, the market is now anticipating a quick
turnaround on Fed policy. The Fed funds futures market indicates an easing in
policy as early as first quarter 2007. These bullish fixed income expectations
are based on slowing economic growth which will relieve inflationary pressures.
As the Fed was slow to raise rates throughout the past two years, we believe
their actions to ease will also be prolonged. Short interest rates will continue
to be supported by the Fed funds rate. As the market sees the economy make
consistent progress and inflation remains elevated, we anticipate intermediate
interest rates will rise back towards the 5.0 percent area.
Even though the Fed hiked interest rates two more times, interest rates moved
lower during the period. The two-year Treasury rate fell 0.13 percent while the
ten-year rate moved lower by 0.22 percent. The result is an inverted yield curve
where longer-term Treasuries provide less income than short-term notes. Many
market prognosticators suggested that this minor inversion meant an impending
recession, yet we are much more optimistic about the economic outlook despite
movements in the Treasury market. Economic growth is expected to slip below
potential, but this adds some much needed slack to the system and prevents
further, more dramatic increases in inflation.
Portfolio performance during the period benefited from an overweight to the
major risk sectors of the fixed income market. All major risk sectors of the
bond market outperformed Treasuries during the quarter. Asset-backed securities
(ABS) (0.30 percent) led the rally and were followed closely by corporate bonds
(0.20 percent) and mortgage-backed securities (MBS) (0.13 percent). Throughout
the period, performance was supported by a yield advantage relative to the
benchmark and overweight sector allocations to corporate bonds, MBS, CMO's and
ABS. The portfolio had less interest rate risk than the benchmark, which held
back performance as interest rates moved lower. In total, active investment
decisions enhanced performance.
Our economic outlook bodes well for the major risk sectors. Domestic and global
economic growth isproviding ample profit opportunities for corporations.
Earnings estimates for both third and fourth quarters are again at double digit
growth rates. Despite the continued risk of shareholder activism and leveraged
buyouts, the corporate bond basis should provide excess returns. Strong
employment levels provide income for homeowners to meet their monthly mortgage
obligations. These factors support an overweight to the market's risk sectors
that generate an income advantage over the index. Interest rate risk management
will be nimble around the market's inflection point. Overweight allocations are
driven by the opportunity to capture additional income while balancing portfolio
risk. Corporate bonds, mortgage-backed securities, CMO's and asset-backed
securities continue to hold overweight positions. U.S. Treasury allocations
continue to possess a significant underweight. The risks to this forecast are
many, but we believe the diverse economy and the fixed income market will not be
overrun by the slowing housing market or rising interest payments on home loans.
11
VINTAGE MUTUAL FUNDS, INC.
Limited Term Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
U.S. GOVERNMENT AGENCIES (20.20%):
1,800,000 Federal Home Loan Mortage Corp.
5.750%, 03/15/09....................................$1,832,722
3,500,000 Federal Home Loan Mortage Corp.
3.875%, 06/15/08.................................... 3,436,755
1,000,000 Federal National Mortgage Assoc.
4.300%, 06/30/08.................................... 988,543
800,000 Federal National Mortgage Assoc.
6.625%, 09/15/09.................................... 837,227
400,000 Quebec Province
7.000%, 01/30/07.................................... 401,928
-----------
Total U.S. Government Agencies...................... 7,497,175
-----------
MORTGAGE RELATED SECURITIES (41.35%):
Airlines (0.43%):
159,197 Continental Airlines Certificates
6.410%, 04/15/07.................................... 158,700
-----------
Collateralized Mortgage Obligation (0.64%):
186,848 Structured Asset Securities 2001-1 B2
7.170%, 02/25/31.................................... 186,215
51,546 Structured Asset Securities
5.330%, 04/25/32.................................... 51,358
-----------
237,573
-----------
Federal Home Loan Mortgage Corporation (17.04%):
1,014,545 2971 Class PE
4.500%, 03/15/26.................................... 999,093
928,425 3089 Class LP
5.500%, 12/15/29.................................... 931,351
16,007 Pool #E61274
7.000%, 08/01/09.................................... 16,065
774,889 Pool #M90830
3.500%, 08/01/08.................................... 747,900
1,064,132 Pool #M90842
4.000%, 09/01/08.................................... 1,039,060
442,239 Pool #M90877
4.000%, 12/01/08.................................... 431,819
765,084 Pool #M90980
5.000%, 05/01/10.................................... 756,904
Federal Home Loan Mortgage Corporation (continued):
798,039 Pool #M90988
5.000%, 07/01/10.................................... 789,506
625,040 Pool Gold #M90876
4.000%, 11/01/08.................................... 610,313
-----------
4,922,191
-----------
Federal National Mortgage Association (2.49%):
288 1993-14 Class A
6.000%, 02/25/08.................................... 288
955,527 Pool #254711
4.000%, 03/01/10.................................... 923,971
-----------
924,259
-----------
Asset Backed (20.76%):
491,696 Amresco 1997-2 M1F
7.430%, 06/25/27.................................... 489,989
1,110,000 Chase Mortgage 2003-4 1A5
5.416%, 05/25/33.................................... 1,102,130
884,616 Chase Mortgage 2003-6 1A3
3.340%, 05/25/26.................................... 868,697
370,293 CountyWide 2004-9 AF3
3.854%, 10/25/30.................................... 367,897
32,365 Conseco Financial Series
7.272%, 06/15/32.................................... 32,522
893,000 CountryWide ABS
5.971%, 08/25/46.................................... 903,481
625,000 CountryWide ABS
4.575%, 05/25/35.................................... 619,394
108,051 First Alliance Step
6.520%, 09/20/29.................................... 107,731
304,920 Green Tree
7.350%, 05/15/27.................................... 316,173
244,559 Green Tree
7.600%, 10/15/27.................................... 254,044
38,115 IMC Home Equity
7.080%, 08/20/28.................................... 38,013
191,301 Indymac 1998-2 A2
6.170%, 12/25/11.................................... 185,476
1,300,000 POPLR 2005-B AF3
4.610%, 08/25/35.................................... 1,281,170
12
VINTAGE MUTUAL FUNDS, INC.
Limited Term Bond Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Asset Backed (continued):
800,000 RAMP 2004-RS12 AI3
3.981%, 04/25/29....................................$ 792,189
350,000 RAMP 2005-RS1
4.109%, 01/25/35.................................... 344,624
-----------
7,703,530
-----------
Total Mortgage Related Securities 15,346,072
-----------
MUNICIPAL BONDS (0.12%):
CIT Group, Inc.
45,000 Azusa Pacific University
7.250%, 04/01/09.................................... 46,085
-----------
CORPORATE BONDS (37.07%):
Automotive Finance (0.80%):
300,000 Daimler Chrysler NA
4.750%, 01/15/08................................... 297,030
-----------
Banking & Financial (5.07%):
300,000 Bank of America Corporation
3.875%, 01/15/08.................................... 294,968
300,000 CIT Group, Inc.
5.750%, 09/25/07.................................... 300,713
400,000 General Electric Capital Corporation
4.625%, 09/15/09.................................... 395,213
300,000 JP Morgan Chase
5.250%, 05/30/07.................................... 299,863
300,000 U.S. Bank NA
4.125%, 03/17/08.................................... 295,515
300,000 Wells Fargo Company
4.000%, 08/15/08.................................... 293,762
-----------
1,880,034
-----------
Banks- International (0.78%):
300,000 Wachovia Corporation
3.500%, 08/15/08.................................... 291,129
-----------
Beverages (1.06%):
400,000 Diageo Capital PLC
3.500%, 11/19/07.................................... 392,162
-----------
Electric Utility (1.31%):
192,000 Arkansas Electric
7.330%, 06/30/08.................................... 193,642
300,000 Duke Energy Corporation
3.750%, 03/05/08.................................... 293,836
-----------
487,478
-----------
Financial Services (10.36%):
300,000 American General Finance AIG
2.750%, 06/15/08.................................... 288,037
600,000 Citigroup, Inc.
3.500%, 02/01/08.................................... 587,175
400,000 CountryWide Home Loan
3.250%, 05/21/08.................................... 387,594
300,000 Ford Motor
6.500%, 01/25/07.................................... 299,795
300,000 GE Capital
5.375%, 03/15/07.................................... 300,125
400,000 Goldman Sachs Group
4.125%, 01/15/08.................................... 394,906
400,000 Household Financial Company
4.625%, 01/15/08.................................... 397,244
200,000 John Deere Corporation
3.625%, 05/25/07.................................... 197,780
300,000 Lehman Brothers
4.000%, 01/22/08.................................... 295,218
400,000 Morgan Stanley
5.800%, 04/01/07.................................... 400,666
300,000 Washington Mutual Finance
4.375%, 01/15/08.................................... 296,386
-----------
3,844,926
-----------
Food Products (1.64%):
300,000 Campbell Soup
5.500%, 03/15/07.................................... 300,216
300,000 Kroger Company
7.450%, 03/01/08.................................... 307,970
-----------
608,186
-----------
13
VINTAGE MUTUAL FUNDS, INC.
Limited Term Bond Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Forest Products (1.09%):
400,000 Weyerhaeuser Company
5.950%, 11/01/08....................................$ 404,456
-----------
Manufactured Capital Goods (1.09%):
400,000 Tyco International Group
6.125%, 11/01/08.................................... 405,843
-----------
Media (4.72%):
300,000 AOL Time Warner
6.150%, 05/01/07.................................... 301,176
400,000 Comcast Cable Communications
8.375%, 05/01/07.................................... 406,782
300,000 Disney Company
5.375%, 06/01/07.................................... 300,196
300,000 Gannett Company
4.125%, 06/15/08.................................... 293,826
450,000 Tribune Company
6.875%, 11/01/06.................................... 450,245
-----------
1,752,225
-----------
Mining (1.06%):
400,000 Alcoa, Inc.
4.250%, 08/15/07.................................... 395,006
-----------
Oil & Gas (0.81%):
300,000 Marathon Oil Corpration
5.375%, 06/01/07.................................... 300,158
-----------
REIT (0.82%):
300,000 Simon Property Group REIT
6.375%, 11/15/07.................................... 302,592
-----------
Retail General Merchandise (1.08%):
400,000 Target Corporation
5.500%, 04/01/07.................................... 400,245
-----------
Telecommunications (5.38%):
300,000 America Movil SA
4.125%, 03/01/09.................................... 291,004
300,000 AT&T, Inc.
4.125%, 09/15/09.................................... 290,514
300,000 AT&T Wireless
7.500%, 05/01/07.................................... 303,486
300,000 Sprint Corporation
6.125%, 11/15/08.................................... 304,394
300,000 Telus Corporation
7.500%, 06/01/07.................................... 303,913
500,000 Verizon Corporation
6.125%, 06/15/07.................................... 502,403
-----------
1,995,714
-----------
Total Corporate Bonds............................. 13,757,185
-----------
MUTUAL FUNDS (0.78%):
290,705 Municipal Assets Fund I Shares...................... 290,705
4.639% -----------
(99.53%) (Cost $37,272,471)........................$36,937,221
Other Assets and Liabilities (0.47%) 174,035
-----------
NET ASSETS (100.00%).............................. $37,111,257
===========
14
PERFORMANCE REPORT
Fixed income total returns were higher during the past six months as interest
rates fell and bond prices rose, providing capital appreciation in addition to
the Fund's income benefits. The ten-year Treasury fell 0.22 percent to finish
the period with a yield of 4.63 percent. For the period, the Vintage Bond Fund
outperformed its benchmark before expenses, yet trailed after expenses.
The Federal Reserve's interest rate increase campaign paused midway through the
period at 5.25 percent. During the four meetings during the period, the Fed
raised the Fed funds rate at only the first two meetings. Following a cumulative
4.25 percent in rate increases, the market is now anticipating a quick
turnaround on Fed policy. The Fed funds futures market indicates an easing in
policy as early as first quarter 2007. These bullish fixed income expectations
are based on slowing economic growth which will relieve inflationary pressures.
As the Fed was slow to raise rates throughout the past two years, we believe
their actions to ease will also be prolonged. Short interest rates will continue
to be supported by the Fed funds rate. As the market sees the economy make
consistent progress and inflation remains elevated, we anticipate intermediate
interest rates will rise back towards the 5.0 percent area.
Even though the Fed hiked interest rates two more times, interest rates moved
lower during the period. The two-year Treasury rate fell 0.13 percent while the
ten-year rate moved lower by 0.22 percent. The result is an inverted yield curve
where longer term Treasuries provide less income than short term notes. Many
market prognosticators suggested that this minor inversion meant an impending
recession, yet we are much more optimistic about the economic outlook despite
movements in the Treasury market. Economic growth is expected to slip below
potential, but this adds some much needed slack to the system and prevents
further, more dramatic increases in inflation. Portfolio performance during the
period benefited from an overweight to the major risk sectors of the fixed
income market. All major risk sectors of the bond market outperformed Treasuries
during the quarter. Asset-backed securities (ABS) (0.30 percent) led the rally
and were followed closely by corporate bonds (0.20 percent) and mortgage-backed
securities (MBS) (0.13 percent). Throughout the period, performance was
supported by a yield advantage relative to the benchmark and overweight sector
allocations to corporate bonds, MBS via CMO's and ABS. The portfolio had less
interest rate risk than the benchmark, which held back performance as interest
rates moved lower. In total, active investment decisions enhanced performance.
Our economic outlook bodes well for the major risk sectors. Domestic and global
economic growth is providing ample profit opportunities for corporations.
Earnings estimates for both third and fourth quarters are again at double digit
growth rates. Despite the continued risk of shareholder activism and leveraged
buyouts, the corporate bond basis should provide excess returns. Strong
employment levels provide income for homeowners to meet their monthly mortgage
obligations. These factors support an overweight to the market's risk sectors
that generate an income advantage over the index. Interest rate risk management
will be nimble around the market's inflection point. Overweight allocations are
driven by the opportunity to capture additional income while balancing portfolio
risk. Corporate bonds and asset-backed securities continue to hold overweight
positions. Pass thru mortgage-backed securities weightings finish the quarter
near benchmark levels, while the portfolio continues to overweight CMO's. U.S.
Treasury allocations continue to possess a significant underweight. The risks to
this forecast are many, but we believe the diverse economy and the fixed income
market will not be overrun by the slowing housing market or rising interest
payments on home loans.
15
VINTAGE MUTUAL FUNDS, INC.
Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
U.S. TREASURY STRIPS (6.69%):
1,810,000 U.S. Treasury Strip
0.000%, 11/15/15......................................$1,187,029
2,200,000 U.S. Treasury Strip
0.000%, 11/15/18...................................... 1,236,657
2,410,000 U.S. Treasury Strip
0.000%, 05/15/20...................................... 1,249,792
2,720,000 U.S. Treasury Strip
0.000%, 08/15/25...................................... 1,091,087
170,000 U.S. Treasury Note
3.625%, 05/15/13...................................... 160,623
480,000 U.S. Treasury Note
4.000%, 02/15/14...................................... 461,531
-----------
Total U.S. Treasury Strips........................... 5,386,719
-----------
U.S. GOVERNMENT AGENCIES (5.46%):
730,000 Federal Home Loan Bank
6.750%, 09/15/29....................................... 886,133
2,040,000 Federal National Mortgage Association
4.500%, 06/01/10.......................................2,004,526
500,000 Federal National Mortgage Association
7.125%, 01/15/30....................................... 632,449
500,000 Quebec Province MTN
7.035%, 03/10/26....................................... 596,530
260,000 United Mexican States
6.750%, 09/27/34....................................... 275,990
-----------
Total U.S. Government Agencies.........................4,395,628
-----------
MORTGAGE RELATED SECURITIES (54.09%):
Collateralized Mortgage Obligations (5.02%):
132,209 FHLMC 2123 Class PE
6.000%, 12/15/27....................................... 132,530
1,925,000 FHLMC 3076 Class PC
5.500%, 11/15/25.......................................1,935,347
955,078 Structed Asset Securities Corp. 2001-1 B2
7.170%, 02/25/31....................................... 951,845
1,049,469 Washington Mutual 2003-AR4 A6
3.423%, 05/25/33.......................................1,026,073
-----------
4,045,795
-----------
Federal Home Loan Mortgage Corporation. (14.93%):
Mortgage-Backed Pools:
906,449 Gold #E01419, 5.500%, 05/01/18 908,194
401,056 Gold #A19963, 5.500%, 03/01/34......................... 396,298
62,964 Gold #C00592, 7.000%, 03/01/28......................... 64,967
63,136 Gold #C00896, 7.500%, 12/01/29......................... 65,620
838,061 Gold #C01491, 6.000%, 02/01/33......................... 844,827
118,590 Gold #C19588, 6.500%, 12/01/28......................... 121,555
89,485 Gold #C72044, 6.500%, 10/01/32......................... 91,496
139,395 Gold #C76748, 6.000%, 02/01/33......................... 140,411
840,650 Gold #C78237, 5.500%, 04/01/33......................... 831,417
2,047,712 Gold #E01488, 5.000%, 10/01/18.........................2,017,563
1,087,279 Gold #E01545, 5.000%, 01/01/19.........................1,071,080
83,250 Gold #E99510, 5.500%, 09/01/18......................... 83,383
786,763 Gold #G01444, 6.500%, 08/01/32......................... 804,652
1,473,325 Gold #G01563, 5.500%, 06/01/33........................ 1,457,144
856,197 Gold #G01772, 5.000%, 02/01/35......................... 825,068
908,470 Gold #G01896, 5.000%, 09/01/35......................... 874,212
823,210 Gold #G08010, 5.500%, 09/01/34......................... 813,443
420,860 Gold #M90876, 4.000%, 11/01/08......................... 410,944
50,893 Pool #C53696, 7.000%, 06/01/31......................... 52,391
73,731 Pool #E00436, 7.000%, 06/01/11......................... 75,062
77,016 Pool #G80135, 7.000%, 10/25/24......................... 79,059
-----------
12,028,786
-----------
Federal National Mortgage Association Pool (19.42%):
Mortgage-Backed Pools:
156,342 ARM #640002, 7.152%, 07/01/31.......................... 159,061
82,082 ARM #686168, 4.911%, 05/01/32.......................... 83,943
891,581 Pool #17315, 6.500%, 12/01/32.......................... 911,600
203,335 Pool #240650, 7.500%, 07/01/21......................... 211,526
55,979 Pool #250990, 7.500%, 07/01/27......................... 58,133
82,182 Pool #251614, 7.000%, 04/01/28......................... 84,814
107,564 Pool #251697, 6.500%, 05/01/28......................... 110,208
177,715 Pool #252334, 6.500%, 02/01/29......................... 182,813
82,578 Pool #252518, 7.000%, 05/01/29......................... 85,423
1,039,560 Pool #254759, 4.500%, 06/01/18.........................1,006,092
1,023,620 Pool #254802, 4.500%, 07/01/18......................... 990,665
494,449 Pool #254905, 6.000%, 10/01/33......................... 497,816
16
VINTAGE MUTUAL FUNDS, INC.
Bond Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Federal National Mortgage Association Pool:
Mortgage-Backed Pools (continued):
176,171 Pool #254982, 5.000%, 12/01/33........................$ 169,880
1,028,122 Pool #255075, 5.500%, 02/01/24........................ 1,023,192
238,242 Pool #255079, 5.000%, 02/01/19......................... 234,755
175,634 Pool #323282, 7.500%, 07/01/28......................... 182,394
82,916 Pool #323640, 7.500%, 04/01/29......................... 86,124
78,629 Pool #346287, 7.000%, 05/01/26......................... 81,168
1,563,764 Pool #357467, 5.500%, 12/01/33.........................1,544,966
67,342 Pool #535817, 7.000%, 04/01/31......................... 69,394
426,263 Pool #545759, 6.500%, 07/01/32......................... 435,669
1,092,726 Pool #545993, 6.000%, 11/01/32.........................1,100,787
1,013,487 Pool #555272, 6.000%, 03/01/33.........................1,020,964
64,767 Pool #581592, 7.000%, 06/01/31......................... 66,680
1,966,002 Pool #683387, 5.500%, 02/01/33.........................1,942,369
231,814 Pool #713974, 5.500%, 07/01/33......................... 229,028
1,017,649 Pool #721502, 5.000%, 07/01/33......................... 981,307
1,156,161 Pool #737730, 5.500%, 09/01/33.........................1,142,263
982,237 Pool #742088, 4.500%, 04/01/19......................... 949,023
-----------
15,642,057
-----------
Government National Mortgage Association Pool (2.96%):
Mortgage-Backed Pools:
144,501 Pool #22536, 7.500%, 01/20/28.......................... 149,558
1,358,961 Pool #23584, 6.000%, 07/20/34..........................1,374,303
50,262 Pool #451522, 7.500%, 10/15/27......................... 52,433
110,860 Pool #462556, 6.500%, 02/15/28......................... 114,040
15,625 Pool #466138, 7.500%, 12/15/28......................... 16,280
67,114 Pool #469699, 7.000%, 11/15/28......................... 69,317
87,565 Pool #486760, 6.500%, 12/15/28......................... 90,077
64,029 Pool #780453, 7.500%, 12/15/25......................... 66,752
99,285 Pool #780584, 7.000%, 06/15/27......................... 102,617
114,183 Pool #780717, 7.000%, 02/15/28......................... 118,050
71,802 Pool #780936, 7.500%, 12/15/28......................... 74,877
150,015 Pool #780990, 7.500%, 12/15/28......................... 156,427
-----------
2,384,731
-----------
Asset Backed Securities (11.76%):
491,696 Amresco 1997-2 M1F
7.430%, 06/25/27....................................... 489,989
1,100,000 Chase Mortgage 2003-4 1A5
5.416%, 05/25/33.......................................1,092,201
965,706 Chase Mortgage 2003-6 1A3
3.340%, 05/25/26....................................... 948,327
1,099,564 CIT Group 2002-1 AF5
6.710%, 02/25/33.......................................1,106,218
Asset Backed Securities (continued):
572,531 CountryWide 2004-9 AF3
3.854%, 10/25/30....................................... 568,826
77,556 ContiMortgage 1999-1 A7
6.470%, 12/25/13....................................... 77,435
805,000 CountryWide ABS
4.575%, 05/25/35....................................... 797,779
668,445 Equity One
6.039%, 11/25/23....................................... 666,558
335,198 Equity One 2000-1 A5
8.015%, 02/25/32....................................... 334,035
56,529 FHLMC Ps Thru T-5 A6
7.120%, 06/25/28....................................... 56,326
697,865 GreenTree 1996-3 A6
7.850%, 05/15/27....................................... 732,472
382,602 Indymac 1998-2 A2
6.170%, 12/25/11....................................... 370,952
10,712 ML Mortgage 2002-AFC1 AF3
6.550%, 09/25/32....................................... 10,675
1,100,000 POPLR 2005-B AF3
4.610%, 08/25/35.......................................1,084,067
1,000,000 RAMP 2004-RS12 AI3
3.981%, 04/25/29....................................... 990,236
149,385 S Pacific 1998-1 A6
7.080%, 03/25/28....................................... 148,850
-----------
9,474,976
-----------
Total Mortgage Related Securities 43,576,315
-----------
TAXABLE MUNICIPAL BONDS (1.42%):
125,000 Fulton MO Sink 7/08
7.600%, 07/01/11....................................... 128,524
815,000 Oregon State G.O.
3.742%, 06/01/08....................................... 797,559
220,000 PA Higher Education Housing
4.700%, 07/01/09....................................... 214,709
-----------
Total U.S. Taxable Municipal Bonds.....................1,140,792
-----------
CORPORATE BONDS (30.68%):
Automotive Finance (0.46%)
365,000 Daimler Chrysler NA
6.500%, 11/15/13....................................... 374,296
-----------
17
VINTAGE MUTUAL FUNDS, INC.
Bond Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Banking & Financial (1.36%):
650,000 Bank of America Corporation
7.400%, 01/15/11.......................................$ 703,479
410,000 U.S. Bank NA
4.800%, 04/15/15....................................... 394,630
-----------
1,098,109
-----------
Beverages (0.69%):
535,000 Anheuser-Busch Company
5.950%, 01/15/33....................................... 555,287
-----------
Broker - Dealer (2.34%):
490,000 JP Morgan Chase & Company
3.500%, 03/15/09....................................... 471,748
240,000 JP Morgan Chase & Company
4.500%, 01/15/12....................................... 231,611
470,000 Lehman Bros Holdings
6.625%, 01/18/12....................................... 498,435
705,000 Morgan Stanley
3.875%, 01/15/09....................................... 686,099
-----------
1,887,893
-----------
Building Products (0.67%):
520,000 Lafarge SA
6.500%, 07/15/16....................................... 537,295
-----------
Conglomerates (1.37%):
680,000 GE Capital Corporation MTN
6.125%, 02/22/11....................................... 705,514
350,000 GE Capital Corporation MTN
6.750%, 03/15/32....................................... 400,064
-----------
1,105,578
-----------
Consumer Goods & Services (0.58%):
490,000 Fortune Brands, Inc.
5.375%, 01/15/16....................................... 467,393
-----------
Data Processing (0.50%):
420,000 First Data Corporation
4.700%, 08/01/13....................................... 403,020
-----------
Aerospace - Defense (0.77%):
530,000 Northrop Grumman
7.750%, 03/01/16....................................... 617,533
-----------
Electrical (0.59%):
490,000 PG&E
4.800%, 03/01/14....................................... 471,554
-----------
Electric Utility (1.34%):
490,000 Appalachian Power Company
5.000%, 06/01/17....................................... 459,010
630,000 Duke Energy Corporation
3.750%, 03/05/08....................................... 617,055
-----------
1,076,065
-----------
Financial Services (2.92%):
505,000 CIT Group, Inc.
4.750%, 12/15/10....................................... 493,753
650,000 Citigroup, Inc.
5.125%, 05/05/14....................................... 641,738
460,000 CountryWide Home Loan
3.250%, 05/21/08....................................... 445,733
800,000 Household Finance
4.750%, 07/15/13....................................... 772,682
-----------
2,353,906
-----------
Food Products (1.03%):
810,000 Kroger Coompany
7.450%, 03/01/08....................................... 831,518
-----------
Home Building & Services (0.84%):
715,000 DR Horton, Inc.
5.625%, 09/15/14....................................... 674,107
-----------
Industial Goods & Services (0.53%):
410,000 Tyco International Group
6.375%, 10/15/11....................................... 429,799
-----------
18
VINTAGE MUTUAL FUNDS, INC.
Bond Fund (continued)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Insurance (1.10%):
450,000 Allstate Corporation
5.000%, 08/15/14.......................................$ 437,477
440,000 Genworth Financial
5.750%, 06/15/14....................................... 448,678
-----------
886,155
-----------
Medical Hospital Mgmt (0.60%):
490,000 Wellpoint, Inc.
5.250%, 01/15/16....................................... 480,101
-----------
Media (1.50%):
120,000 AOL Time Warner
7.625%, 04/15/31....................................... 132,560
255,000 AOL Time Warner
6.875%, 05/01/12....................................... 269,634
710,000 Comcast (AT&T Broad)
8.375%, 03/15/13....................................... 809,887
-----------
1,212,081
-----------
Mining (0.60%):
490,000 BHP Finance USA
5.250%, 12/15/15....................................... 483,622
-----------
Networking Products (0.61%):
490,000 Cisco Systems, Inc.
5.500%, 02/22/16....................................... 493,897
-----------
Oil & Gas (1.82%):
380,000 Conoco, Inc.
6.950%, 04/15/29....................................... 438,240
600,000 Enterprise Products
5.000%, 03/01/15....................................... 562,682
435,000 Valero Energy
6.875%, 04/15/12....................................... 463,105
-----------
1,464,027
-----------
Pipelines (0.81%):
630,000 Kinder Morgan Energy
6.750%, 03/15/11....................................... 656,389
-----------
Railroads (0.38%):
280,000 Union Pacific Corporation
6.625%, 02/01/29....................................... 305,970
-----------
REIT (1.38%):
430,000 Realty Income Corporation
5.500%, 11/15/15....................................... 422,726
630,000 Simon Property Group REIT
7.750%, 01/20/11....................................... 685,364
-----------
1,108,090
-----------
Retail General Merchandise (1.22%):
425,000 May Department Stores
5.750%, 07/15/14....................................... 418,276
460,000 Wal-Mart Stores
7.550%, 02/15/30....................................... 565,035
-----------
983,311
-----------
Telecommunications (4.67%):
605,000 America Movil SA
5.500%, 03/01/14....................................... 588,737
365,000 AT&T, Inc.
5.875%, 08/15/12....................................... 370,494
310,000 AT&T Wireless
7.875%, 03/01/11....................................... 339,479
425,000 France Telecom
8.500%, 03/01/11....................................... 465,620
845,000 GTE Corporation (Verizon)
7.510%, 04/01/09....................................... 886,706
295,000 Sprint Corporation
8.375%, 03/15/12....................................... 330,631
705,000 Telus Corporation
8.000%, 06/01/11....................................... 777,124
-----------
3,758,790
-----------
Total Corporate Bonds.................................24,715,786
-----------
PREFERRED STOCK (0.32%):
10,000 Realty Income Sr PFD
8.25% , 11/15/08....................................... 260,400
-----------
MUTUAL FUNDS (1.03%):
826,203 Liquid Assets Fund I Shares............................ 826,203
4.639% -----------
Total Investment in Securities
(99.68%) (Cost $80,992,694) $80,301,846
Other Assets and Liabilities (0.32%) 256,243
-----------
NET ASSETS (100.00%) $80,558,089
===========
19
PERFORMANCE REPORT
Vintage Municipal Bond Fund
The Federal Reserve paused in the third calendar quarter, leaving overnight
rates unchanged and sending longer interest rates tumbling as the market began
to anticipate a Fed easing in the first quarter of 2007. While economic growth
has clearly declined, inflation pressures have not yet receded and the Fed
remains vigilant in its pursuit of containment. The ten-year U.S. Treasury rate
fell 0.51 percent and finished the quarter at 4.63 percent. Municipal bonds
followed suit with the ten year falling 0.47 percent to finish at 3.77 percent.
Performance of the Fund benefited from the addition of callable bonds and some
healthcare exposure. Overweight allocations are driven by the opportunity to
capture additional income while balancing portfolio risk. Investment strategy is
focused on increasing exposure to municipal sectors and structures that generate
an income advantage over the index while maintaining interest rate risk modestly
lower than the index.
The Fund has continued to make strides toward increasing income and improving
relative performance over the last quarter. Increasing callable bond exposure as
well as the addition of some higher yielding exposures such as healthcare pushed
overall portfolio yield higher and resulted in improving performance relative to
peers. Investment strategy continues to increase exposure to municipal sectors
and structures that generate an income advantage over the index while
maintaining interest rate risk modestly lower than the index.
20
VINTAGE MUTUAL FUNDS, INC.
Municipal Bond Fund
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
MUNICIPAL BONDS (89.77%):
Alabama (1.47%):
290,000 Montgomery, AL G.O.
5.000% , 01/01/23.....................................$ 308,079
-----------
Arkansas (2.34%):
465,000 Arkansas State G.O.
5.500% , 08/01/09...................................... 489,901
-----------
California (6.67%):
290,000 California State
5.000% , 12/01/17...................................... 310,404
500,000 California State
5.250% , 03/01/11...................................... 533,585
500,000 California State Revenue
5.250% , 07/01/13...................................... 548,115
-----------
1,392,104
-----------
Colorado (2.21%):
150,000 Denver Department Parks, CO
4.000% , 09/01/07...................................... 149,898
290,000 Evergreen, CO G.O.
5.000%, 12/01/19....................................... 312,321
-----------
462,219
-----------
Florida (5.06%):
200,000 Bay County, FL
5.000% , 09/01/18...................................... 216,798
300,000 Collier County Revenue, FL
5.000% , 06/01/21...................................... 321,105
475,000 Florida State Board of Education
5.000% , 06/01/15...................................... 518,482
-----------
1,056,385
-----------
Illinois (9.90%):
240,000 DuPage County, IL
5.000% , 11/01/16...................................... 258,050
300,000 Illinois State, G.O.
5.250% , 10/01/19...................................... 322,827
300,000 Kendall County, IL G.O.
5.250% , 01/01/23...................................... 327,297
300,000 De Kalb County, IL G.O.
5.000% , 12/01/20...................................... 322,113
435,000 Will County IL School District
6.500% , 11/01/10...................................... 482,898
320,000 Will County IL School District
6.500% , 11/01/17...................................... 353,827
-----------
1,230,287
-----------
Indiana (3.39%):
450,000 Allen County IN
5.750% , 10/01/11...................................... 494,528
200,000 Evansville IN
5.000% , 12/01/23...................................... 214,738
-----------
709,266
-----------
Massachusetts (2.40%):
465,000 MA State Special Revenue
5.000% , 06/01/14...................................... 501,907
-----------
Michigan (5.07%):
1,000,000 WSU MI Revenue
5.375% , 11/15/13......................................1,058,830
-----------
Nevada (1.49%):
290,000 Nevada State G.O.
5.000% , 02/01/18...................................... 311,631
-----------
New York (4.79%):
440,000 New York, NY
5.000% , 08/01/12...................................... 469,009
245,000 New York, NY - SER G
5.000% , 12/01/17...................................... 262,275
250,000 New York, NY Transitional
5.000% , 11/01/19...................................... 269,180
-----------
1,000,464
-----------
Ohio (2.06%):
100,000 Ohio Higher Education
5.000%, 10/01/11....................................... 105,121
300,000 Ohio State University
5.250%, 06/01/19....................................... 325,041
-----------
430,162
-----------
21
VINTAGE MUTUAL FUNDS, INC.
Municipal Bond Fund (continuted)
Schedule of Portfolio Investments (Unaudited)
September 30, 2006
Par Value Description Value
- --------- ----------- -----
Pennsylvania (3.19%):
290,000 Neshaminy, PA G.O.
5.000% , 05/01/18.....................................$ 315,717
CIT Group, IncPhiladelphia, PA IDR
Var Due, 03/01/27...................................... 350,000
-----------
665,717
-----------
Tennessee (7.83%):
1,000,000 Johnson City TN Revnue
5.500% , 07/01/12......................................1,093,570
500,000 Memphis TN
5.000% , 11/01/14...................................... 540,455
-----------
1,634,025
-----------
Texas (17.62%):
290,000 CIT Group, Inc.
0.000% Due , 08/15/14....................................205,192
280,000 Denton TX Utility System
5.000% , 12/01/13...................................... 295,842
300,000 Harris Co., TX G.O.
5.250% , 10/01/20...................................... 325,767
290,000 Plano, TX G.O.
4.750% , 09/01/19...................................... 305,599
900,000 Sam Rayburn TX Revenue
6.000% , 09/01/10...................................... 966,195
750,000 Texas State
5.250% , 08/01/10...................................... 795,563
490,000 Texas State
5.250% , 10/15/12...................................... 531,728
245,000 Texas State Housing Revenue
4.300% , 09/01/16...................................... 249,694
-----------
3,675,581
-----------
Washington (11.62%):
340,000 Clark County WA Schedule
5.250% , 12/01/09...................................... 357,282
125,000 Clark County WA Schedule
5.250% , 12/01/14...................................... 130,361
465,000 Grays Harbor County Utility
5.500% D, 01/01/14..................................... 498,029
500,000 King County WA
5.000% , 01/01/11...................................... 528,175
Washington (continued):
200,000 King County WA
4.000% , 12/01/12..................................... 202,636
200,000 Seattle, WA G.O.
Citigroup, Inc........................................ 213,528
465,000 WA State Service R03A
5.000% , 01/01/15...................................... 493,835
-----------
1,513,847
-----------
Wisconsin (2.61%):
200,000 Monona, WI Sewer Revenue
4.500% , 05/01/11...................................... 202,760
200,000 Kronewetter, WI
4.750% , 03/01/11...................................... .202,640
135,000 Wisconsin State
5.000% , 04/01/09...................................... 139,130
-----------
544,530
-----------
17,610,000 Total Municipal Bonds.................................18,731,659
-----------
Alternative Minimum Tax Paper (9.78%):
Iowa (4.90%):
1,000,000 Iowa Student Loan Corporation
5.100% , 06/01/09......................................1,023,130
Utah (4.88%):
1,000,000 Utah State Revenue
5.200% , 05/01/08......................................1,019,290
-----------
2,000,000 Total Alternative Minimum Tax Paper 2,042,420
-----------
Mutual Funds (0.38%):
78,491 Municipal Assets Fund I Shares......................... 78,491
4.639% -----------
Total Investment in Securities
(99.93%) (Cost $20,559,781) $20,852,570
Other Assets & Liabilities (0.07%) 13,627
-----------
NET ASSETS (100.00%) $20,866,197
===========
22
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
September 30, 2006
INSTITUTIONAL INSTITUTIONAL LIQUID MUNICIPAL
MONEY MARKET RESERVES ASSETS ASSETS
FUND FUND FUND FUND
------------ ----------- ------------ ------------
ASSETS:
Investments, at value $9,435,834 $35,394,822 $96,323,693 $15,499,037
Repurchase agreements 53,225,368 51,952,391 39,330,931 -----
------------ ----------- ------------ ------------
Total Investments 62,661,202 87,347,213 135,654,624 15,499,037
Cash ----- ----- ----- -----
Interest and dividends receivable 82,167 271,827 1,041,991 91,587
Receivable for capital shares issued ----- ----- ----- -----
Receivable for investments sold ----- ----- ----- -----
Dividend reinvestment receivable 262,356 ----- 55,077 1,155
Prepaid expenses ----- ----- ----- -----
------------ ----------- ------------ ------------
Total Assets 63,005,725 87,619,040 136,751,692 15,591,779
------------ ----------- ------------ ------------
LIABILITIES:
Dividends payable 262,356 379,129 478,981 34,577
Payable for investments purchased 502,568 1,005,137 2,018,473 125,289
Payable for capital shares redeemed ----- ----- ----- -----
Accrued expenses and other payables:
Investment advisory fees 2,583 11,347 37,906 4,690
Administration fees 2,583 3,782 22,744 2,814
Accounting fees ----- ----- 3,249 402
Transfer agency fees ----- ----- ----- -----
Distribution fees ----- ----- 19,120 217
Servicing fees ----- ----- 30,512 1,666
Other 22,312 6,039 67,169 5,114
------------ ----------- ------------ ------------
Total Liabilities 792,402 1,405,434 2,678,154 174,769
------------ ----------- ------------ ------------
Net Assets $62,213,323 $86,213,606 $134,073,538 $15,417,010
============ =========== ============ ============
Investments, at Cost $62,661,202 $87,347,213 $135,654,624 $15,499,037
============ =========== ============ ============
23
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
September 30, 2006
Limited Municipal
Term Bond Bond Bond
Fund Fund Fund
------------- ------------- -------------
ASSETS:
Investments, at value $36,937,222 $80,301,846 $20,852,570
Repurchase agreements ----- ----- -----
------------- ------------- -------------
Total Investments 36,937,222 80,301,846 20,852,570
Cash ----- ----- -----
Interest and dividends receivable 320,118 559,871 293,815
Receivable for capital shares issued ----- ----- -----
Receivable for investments sold ----- ----- -----
Dividend reinvestment receivable 30,275 58,034 5,327
Prepaid expenses ----- ----- -----
------------- ------------- -------------
Total Assets 37,287,615 80,919,751 21,151,712
------------- ------------- -------------
LIABILITIES:
Dividends payable 114,464 271,356 58,122
Payable for investments purchased ----- ----- 201,950
Payable for capital shares redeemed 10,081 ----- -----
Accrued expenses and other payables:
Investment advisory fees 15,562 37,024 8,796
Administration fees 4,357 11,456 3,876
Accounting fees 934 2,020 528
Transfer agency fees ----- ----- -----
Distribution fees ----- ----- -----
Servicing fees ----- ----- -----
Other 30,958 39,804 12,243
------------- ------------- -------------
Total Liabilities 176,356 361,660 285,515
------------- ------------- -------------
Net Assets $37,111,257 $80,558,089 $20,866,197
============= ============= =============
Investments, at Cost $37,272,471 $80,992,695 $20,559,781
============= ============= =============
24
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
September 30, 2006
INSTITUTIONAL INSTITUTIONAL LIQUID MUNICIPAL
MONEY MARKET RESERVES ASSETS ASSETS
FUND FUND FUND FUND
------------- ------------ ----------- ------------
NET ASSETS:
Paid-in capital $62,213,323 $86,213,606 $134,080,672 $15,417,010
Accumulated undistributed
(distributions in excess of)
net investment income ----- ----- (109) -----
Net unrealized gain (losses) on
investment transactions ----- ----- ----- -----
Accumulated undistributed net
realized gains (losses)
on investment transactions ----- ----- (7,025) -----
------------- ------------ ----------- ------------
Net Assets $62,213,323 $86,213,606 $134,073,538 $15,417,010
============= ============ =========== ============
Authorized Shares $1,250,000,000 1,250,000,000
============= ============
Capital Shares Outstanding 62,213,323 86,213,606
============= ============
Net asset value--offering and
redemption price per $1.00 $1.00
============= ============
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $13,811,458 $812,421
=========== ============
Authorized Shares 1,250,000,000 1,250,000,000
=========== ============
Shares outstanding, $.001 par value 13,815,282 812,421
=========== ============
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ============
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding $27,667,851
===========
Authorized Shares 1,250,000,000
===========
Shares outstanding, $.001 par value 27,668,056
===========
Net asset value--offering and redemption price per share $1.00
===========
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $16,434,611 $3,471,816
=========== ============
Authorized Shares 1,250,000,000 1,250,000,000
=========== ============
Shares outstanding, $.001 par value 16,436,119 3,471,816
=========== ============
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ============
PRICING OF I SHARES
Net assets applicable to I Shares outstanding $76,159,618 $11,132,773
=========== ============
Authorized Shares 1,250,000,000 1,250,000,000
=========== ============
Shares outstanding, $.001 par value 76,161,109 11,132,773
=========== ============
Net asset value--offering and redemption price per share $1.00 $1.00
=========== ============
25
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
September 30, 2006
LIMITED MUNICIPAL
TERM BOND BOND BOND
FUND FUND FUND
-------------- ------------- ------------
NET ASSETS:
Paid-in capital $40,632,326 $84,358,590 $20,470,812
Accumulated undistributed
(distributions in excess of)
net investment income 140,238 (33,843) (663)
Net unrealized gain (losses)
on investment transactions (335,250) (690,849) 292,789
Accumulated undistributed net
realized gains (losses)
on investment transactions (3,326,056) (3,075,808) 103,260
-------------- ------------- ------------
Net Assets $37,111,257 $80,558,089 $20,866,197
============== ============= ============
Authorized Shares 800,000,000 809,987,393 800,000,000
============== ============= ============
Capital Shares Outstanding 3,919,182 8,332,362 2,042,036
============== ============= ============
Net asset value--offering and
redemption price per share $9.47 $9.67 $10.22
============== ============= ============
26
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended September 30, 2006
Institutional Institutional Liquid Municipal
Money Market Reserves Assets Assets
Fund Fund Fund Fund
------------- ------------- ----------- -----------
INVESTMENT INCOME:
Interest income $1,971,213 $1,702,427 $3,416,073 $300,677
Dividend income ----- ----- ----- -----
------------- ------------- ----------- -----------
Total Income 1,971,213 1,702,427 3,416,073 300,677
------------- ------------- ----------- -----------
EXPENSES: (NOTE 4)
Investment advisory fees 134,647 116,022 231,170 30,002
Administration fees 80,788 69,613 138,702 18,001
Distribution and shareholder service fees S Shares ----- ----- 44,976 3,508
Distribution and shareholder service fees S2 Shares ----- ----- 108,826 -----
Distribution and shareholder service fees T Shares ----- ----- 37,902 4,311
Shareholder service fees ----- ----- ----- -----
Custody fees 26,295 15,534 41,599 4,441
Accounting fees 11,541 9,945 19,815 2,572
Legal fees 5,447 2,673 6,282 674
Audit fees 10,231 5,854 13,496 8,330
Directors' fees 12,982 7,518 16,924 2,182
Transfer agent fees ----- 3,902 62,343 12,554
Registration and filing fees ----- ----- 8,839 718
Printing fees 1,636 684 2,212 268
Other 1,116 1,342 2,199 835
------------- ------------- ----------- -----------
Total Expenses 284,683 233,087 735,285 88,396
Less: Expenses voluntarily reduced/waived (212,532) (129,281) (42,923) (2,426)
------------- ------------- ----------- -----------
Net Expenses 72,151 103,806 692,362 85,970
------------- ------------- ----------- -----------
Net Investment Income 1,899,062 1,598,621 2,723,711 214,707
------------- ------------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment transactions ----- ----- ----- -----
Net change in unrealized appreciation (depreciation)
from investments ----- ----- ----- -----
------------- ------------- ----------- -----------
Net realized and unrealized gains (losses)
from investments ----- ----- ----- -----
------------- ------------- ----------- -----------
Change in net assets resulting from operations $1,899,062 $1,598,621 $2,723,711 $214,707
============= ============= =========== ===========
27
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
September 30, 2006
Limited Municipal
Term Bond Bond Bond
Fund Fund Fund
----------- ------------ ------------
INVESTMENT INCOME:
Interest income $895,048 $2,208,267 $485,518
Dividend income ----- 10,312 -----
----------- ------------ ------------
Total Income 895,048 2,218,579 485,518
----------- ------------ ------------
EXPENSES: (NOTE 4)
Investment advisory fees 101,112 238,594 58,653
Administration fees 52,578 112,688 30,472
Distribution and shareholder service fees S Shares ----- ----- -----
Distribution and shareholder service fees S2 Shares ----- ----- -----
Distribution and shareholder service fees T Shares ----- ----- -----
Shareholder service fees 50,556 108,452 29,326
Custody fees 5,415 10,633 3,466
Accounting fees 6,067 13,014 3,519
Legal fees 2,300 4,469 1,193
Audit fees 8,435 12,277 9,876
Directors' fees 7,095 13,467 3,909
Transfer agent fees 30,367 49,832 8,860
Registration and filing fees 1,039 2,810 699
Printing fees 895 1,657 448
Other 9,328 17,094 7,199
----------- ------------ ------------
Total Expenses 275,187 584,987 157,621
Less: Expenses voluntarily reduced/waived (117,018) (236,216) (68,223)
----------- ------------ ------------
Net Expenses 158,169 348,771 89,398
----------- ------------ ------------
Net Investment Income 736,879 1,869,808 396,120
----------- ------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions (121,104) (534,548) (5,228)
Net change in unrealized appreciation (depreciation)
from investments 350,030 1,409,195 215,552
----------- ------------ ------------
Net realized and unrealized gains (losses)
from investments 228,925 874,647 210,324
----------- ------------ ------------
Change in net assets resulting from operations $965,805 $2,744,455 $606,444
=========== ============ ============
28
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
INSTITUTIONAL INSTITUTIONAL
MONEY MARKET RESERVES FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2006 2006 2006 2006
--------------- ------------ -------------- -------------
OPERATIONS:
Net investment income $ 1,899,062 $ 1,073,750 $ 1,598,621 $ 1,972,686
Net realized gains (losses)
from investment transactions ------ ------ ------ ------
Net change in unrealized appreciation
(depreciation) from investments ------ ------ ------ ------
Change in net assets resulting from --------------- ------------ -------------- -------------
operations 1,899,062 1,073,750 1,598,621 1,972,686
--------------- ------------ -------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income:
Capital Shares (1,899,062) (1,073,750) (1,598,621) (1,972,686)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
From net realized gains:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
Return of capital ------ ------ ------ ------
Change in net assets from --------------- ------------ -------------- -------------
shareholder distributions $ (1,899,062) $(1,073,750) $ (1,598,621) $ (1,972,686)
--------------- ------------ -------------- -------------
29
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIQUID ASSETS FUND MUNICIPAL ASSETS FUND
----------------------- ------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
September 30, March 31, September 30, March 31,
2006 2006 2006 2006
------------ ---------- ------------ -----------
OPERATIONS:
Net investment income $ 2,723,711 $3,218,107 $ 214,707 $ 398,915
Net realized gains (losses)
from investment transactions ------ ------ ------ ------
Net change in unrealized appreciation
(depreciation) from investments ------ ------ ------ ------
Change in net assets resulting from ------------ ---------- ------------ ----------
operations 2,723,711 3,218,107 214,707 398,915
------------ ---------- ------------ ----------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income:
Capital Shares ------ ------ ------ ------
S Shares (221,033) (355,197) (15,073) (44,087)
S2 Shares (846,833) (1,375,224) ------ ------
T Shares (632,502) (872,120) (41,713) (61,414)
I Shares (1,019,201) (615,566) (157,921) (293,414)
From net realized gains:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
Return of capital ------ ------ ------ ------
Change in net assets from ------------ ----------- ------------ ----------
shareholder distributions $(2,719,569) $(3,218,107) $ (214,707) $(398,915)
------------ ----------- ------------ ----------
30
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIMITED TERM BOND FUND BOND FUND MUNICIPAL BOND FUND
-------------------------- ------------------------ -------------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30 MARCH 31,
2006 2006 2006 2006 2006 2006
-------------- ----------- -------------- ---------- ------------- -----------
OPERATIONS:
Net investment income $ 736,879 $ 1,584,033 $ 1,869,808 $ 4,137,405 $ 396,121 $ 1,051,630
Net realized gains (losses)
from investment transactions (121,104) (808,802) (534,548) (276,031) (5,228) 345,195
Net change in unrealized appreciation
(depreciation) from investments 350,030 424,621 1,409,195 (1,933,025) 215,552 (867,305)
Change in net assets resulting from -------------- ------------------------- ---------- ------------- ------------
operations 965,805 1,199,852 2,744,455 1,928,349 606,445 529,520
-------------- ------------------------- ---------- ------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income:
Capital Shares (736,889) (1,486,952)(1,914,392) (4,412,560) (396,111) (1,052,079)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
From net realized gains:
Capital Shares ------ ------ ------ ------ ------ (551,669)
S Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
Return of capital ------ ------ ------ ------ ------ ------
Change in net assets from -------------- -------------- ----------- ---------- ------------ -------------
shareholder distributions $ (736,889) $ (1,486,952)$(1,914,392 $(4,412,560) $ (396,111) $ (1,603,748)
-------------- -------------- ----------- ---------- ------------ -------------
31
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
INSTITUTIONAL MONEY MARKET INSTITUTIONAL RESERVES FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2006 2006 2006 2006
--------------- ------------ -------------- -------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares 215,559,352 172,452,017 146,419,826 197,521,583
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 1,899,062 1,084,739 ------ ------
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (218,731,450)(120,162,877) (106,361,186) (195,039,629)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
--------------- ------------ -------------- -------------
Change in net assets from capital
transactiones (1,273,036) 53,373,879 40,058,640 2,481,954
--------------- ------------ -------------- -------------
Change in net assets (1,273,036) 53,373,879 40,058,640 2,481,954
NET ASSETS:
Beginning of period 63,486,359 10,112,480 46,154,966 43,673,012
--------------- ------------ -------------- -------------
End of period $ 62,213,323 $63,486,359 $ 86,213,606 $ 46,154,966
=============== ============ ============== =============
32
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIQUID ASSETS FUND MUNICIPAL ASSETS FUND
------------------------ -------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
September 30, March 31, September 30, March 31,
2006 2006 2006 2006
------------ ---------- ------------- -----------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ ------
S Shares 26,688,974 69,214,128 3,422,646 9,603,471
S2 Shares 123,373,621 295,821,875 ------ ------
T Shares 111,993,586 275,516,554 6,305,399 8,039,451
I Shares 116,244,057 59,546,020 24,608,054 43,700,653
REINVESTMENTS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares 160,718 137,553 6,921 11,852
I Shares 59,758 13,003 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ ------ ------
S Shares (24,461,041) (71,003,387) (4,712,280) (10,443,172)
S2 Shares (156,219,373) (283,549,395) ------ ------
T Shares (123,257,302) (261,578,141) (6,116,247) (8,736,851)
I Shares (72,761,430) (37,299,624) (26,401,440) (50,593,904)
------------ ------------ ------------ -----------
Change in net assets from
capital transactions 1,821,568 46,818,586 (2,886,947) (8,418,500)
------------ ------------ ------------ -----------
Change in net assets 1,825,710 46,818,586 (2,886,947) (8,418,500)
NET ASSETS:
Beginning of period 132,247,828 85,429,242 18,303,957 26,722,457
------------ ------------ ------------ -----------
End of period $134,073,538 $132,247,828 $15,417,010 $18,303,957
============ ============ ============ ===========
33
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIMITED TERM BOND FUND BOND FUND MUNICIPAL BOND FUND
---------------------------- ----------------------- -------------------------
Six Months Year SIX MONTHS YEAR SIX MONTHS YEAR
Ended Ended ENDED ENDED ENDED ENDED
September 30, March 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2006 2006 2006 2006 2006 2006
-------------- ------------- ------------- ---------- ------------- ------------
CAPITAL SHARE
TRANSACTIONS:
ISSUED:
Capital Shares 1,699,554 6,670,575 3,768,888 12,291,124 358,138 1,724,285
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 194,106 456,636 430,483 1,210,236 36,352 137,414
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (9,885,135) (19,216,854)(20,593,993)(27,566,466) (6,025,248) (13,069,959)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
Change in net assets from
Capital transacations -------------- ------------------------- ------------ -------------------------
(7,991,475) (12,089,643)(16,394,622)(14,065,106) (5,630,758) (11,208,260)
-------------- ------------------------- ------------ -------------------------
Change in net assets (7,762,559) (12,376,743)(15,564,559)(16,549,317) (5,420,424) (12,282,488)
NET ASSETS:
Beginning of period 44,873,817 57,250,560 96,122,648 112,671,965 26,286,620 38,569,108
-------------- ------------------------- ------------ ----------- --------------
End of period $ 37,111,257 $ 44,873,817 $80,558,089 $96,122,648 $20,866,197 $26,286,620
============== ========================= ============ =========== ==============
34
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
INSTITUTIONAL MONEY MARKET INSTITUTIONAL RESERVES FUND
---------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2006 2006 2006 2006
--------------- ------------ -------------- -------------
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 215,559,352 172,452,017 146,419,826 197,521,583
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 1,899,062 1,084,739 ------ ------
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (218,731,450)(120,162,877) (106,361,186) (195,039,629)
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ------ ------
T Shares ------ ------ ------ ------
I Shares ------ ------ ------ ------
--------------- ------------ -------------- -------------
Change in shares (1,273,036) 53,373,879 40,058,640 2,481,954
=============== ============ ============== =============
35
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIQUID ASSETS FUND MUNICIPAL ASSETS FUND
----------------------- -------------------------
Six Months Year Six Months Year
Ended Ended Ended Ended
September 30, March 31, September 30, March 31,
2006 2006 2006 2006
------------- ---------- ------------- ----------
SHARE TRANSACTIONS:
ISSUED:
Capital Shares ------ ------ ------ ------
S Shares 26,688,974 69,214,128 3,422,646 9,603,471
S2 Shares 123,373,621 295,821,875 ------ ------
T Shares 111,993,586 275,516,554 6,305,399 8,039,451
I Shares 116,244,057 59,546,020 24,608,054 43,700,653
REINVESTMENTS:
Capital Shares ------ ------ ------ ------
S Shares ------ ------ ------ ------
S2 Shares ------ ------ ----- ------
T Shares 160,718 137,553 6,921 11,852
I Shares 59,758 13,003 ------ ------
REDEMPTIONS:
Capital Shares ------ ------ ------ ------
S Shares (24,461,041) (71,003,387) (4,712,280)(10,443,172)
S2 Shares (156,219,373)(283,549,395) ------ ------
T Shares (123,257,302)(261,578,141) (6,116,247) (8,736,851)
I Shares (72,761,430) (37,299,624) (26,401,440)(50,593,904)
------------ ------------ ------------ -----------
Change in shares 1,821,568 46,818,586 (2,886,947) (8,418,500)
============ ============ ============ ===========
36
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
LIMITED TERM BOND FUND BOND FUND MUNICIPAL BOND FUND
--------------------------- ------------------------ ------------------------
Six Months Year SIX MONTHS YEAR SIX MONTHS YEAR
Ended Ended ENDED ENDED ENDED ENDED
September 30, March 31, SEPTEMBER 30, MARCH 31, SEPTEMBER 30, MARCH 31,
2006 2006 2006 2006 2006 2006
-------------- ------------ ------------- ---------- ------------- ---------
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 180,491 703,873 395,239 1,255,250 35,425 166,389
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 20,616 48,273 45,210 123,586 3,594 13,273
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (1,049,869) (2,030,038) (2,162,173) (2,816,589) (594,748) (1,260,290)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
------------- -------------- ----------- ----------- ------------ ------------
Change in shares (848,762) (1,277,892) (1,721,725) (1,437,753) (555,729) (1,080,628)
============= ============== =========== -========== ============ ============
37
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
1. Organization:
IMG Mutual Funds, Inc. was incorporated on November 16, 1994 and capitalized on
May 1, 1995. IMG Mutual Funds, Inc. was renamed Vintage Mutual Funds, Inc., (the
"Funds"), in February 1998. The Funds are registered under the Investment
Company Act of 1940 (the "1940 Act"), as amended, as a diversified open-end
management investment company issuing its shares in seven portfolios. The Funds
currently consist of the following diversified portfolios (individually, a
"Fund"): Institutional Money Market Fund, Institutional Reserves Fund, Liquid
Assets Fund, Municipal Assets Fund, Vintage Limited Term Bond Fund ("Limited
Term Bond Fund"), Vintage Bond Fund ("Bond Fund"), and Vintage Municipal Bond
Fund ("Municipal Bond Fund").
Liquid Assets Fund and Municipal Assets Fund offer four and three classes of
shares, respectively. S and S2 Shares are offered to customers of banks. S and
S2 Shares are normally offered through financial institutions providing
automatic "sweep" investment programs to their own customers. T Shares may be
purchased only by financial institutions acting on their own behalf or on behalf
of certain customers' accounts. I Shares may be purchased by individual and
institutional investors directly from BISYS Fund Services Limited Partnership
(the "Distributor").
Each class of shares has equal rights to earnings, assets, and voting privileges
except each class bears different distribution and shareholder servicing
expenses. Each class of shares has exclusive voting rights on matters affecting
only that class. Income, expenses (other than expenses attributable to a
specific class), and realized and unrealized gains or losses on investments are
allocated to each class of shares based upon its relative net assets.
The Vintage Board of Directors approved the termination and liquidation of the
Government Assets Fund effective June 29, 2006. All shareholders in Government
Assets Fund on that date had the proceeds of the automatic liquidation invested
in the Liquid Assets Fund, and they became shareholders of Liquid Assets Fund
with the exact same account balance as they had in Government Assets Fund. This
action was taken to improve the operating efficiency of the Funds.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of the financial statements. The policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ from
those estimates.
Securities Valuation
Investments of the Institutional Money Market Fund, Institutional Reserves Fund,
Liquid Assets Fund and Municipal Assets Fund (the "Money Market Funds") are
valued at amortized cost, which approximates market value. Under the amortized
cost method of valuation, discount or premium is amortized on an effective yield
basis to the maturity of the security.
Investments of the Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund
(collectively the "Variable Net Asset Funds") for which the primary market is a
national securities exchange are valued at the last reported sale price or
official closing price, on the day of valuation. In the absence of any sale of
such securities on the valuation date, the valuations are based on the latest
available bid quotation.
38
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
Substantially all fixed-income securities are valued each business day as of the
close of regular trading by one or more independent pricing services (the
"Pricing Services") approved by the Fund's Board of Directors (the "Board").
When quoted bid prices are readily available, the Pricing Services generally
value fixed-income securities at the bid price, provided that the Pricing
Services believe those prices to reflect the fair market value of the
securities. Other investments valued by the Pricing Services are carried at fair
value as determined by the Pricing Services, based on methods which include
consideration of: yields or prices of securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general market
conditions. Pricing Services may take other factors into consideration in
pricing securities, including institutional size transactions in similar groups
of securities as well as developments related to specific securities.
Investments in investment companies are valued at their respective net asset
values as reported by such companies. Securities, including restricted
securities, for which market quotations are not readily available, are valued at
fair market value as determined in good faith by the investment adviser under
the supervision of the Board. The difference between the cost and market values
of investments held by the variable net asset funds is reflected as either
unrealized appreciation or depreciation.
Security Transactions and Investment Income
Security transactions are accounted for on the date the security is purchased or
sold ("trade date"). Interest income is recognized on the accrual basis and
includes, when applicable, the pro rata amortization of premium or accretion of
discount. Dividends are recorded on the ex-dividend date. Gains or losses
realized on sales of securities are determined on the identified cost basis.
Repurchase Agreements
The Funds may engage in repurchase agreements with financial institutions such
as banks, brokers, or dealers that the investment advisor, WB Capital Management
Inc. ("WB Capital"), deems creditworthy under guidelines approved by the Board,
subject to the seller's agreement to repurchase such securities at a mutually
agreed-upon date and price. The seller under a repurchase agreement will be
required to maintain continually the value of collateral held pursuant to the
agreement at not less than the repurchase price (including accrued interest). If
the seller were to default on its repurchase obligation or become insolvent, the
Fund holding such obligation would suffer a loss to the extent that the proceeds
from a sale of the underlying portfolio were less than the repurchase price
under the agreement, or to the extent that the disposition of such securities by
the Fund were delayed pending court action. The repurchase price generally
equals the price paid plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities.
Loan Certificates
The Liquid Assets Fund invests in Farmers Home Administration Guaranteed Loan
Certificates ("FmHA") which represent interests in the guaranteed portion of
FmHA loans issued by one or more guaranteed loan trusts subject to repurchase on
no more than five business days written notice. The FmHAs are diversified
through limitations on certificates sold by any one individual bank.
39
VINTAGE MUTUAL FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2006
Securities Purchased on a When-Issued or Delayed-Delivery Basis
Each Fund may purchase securities on a when-issued or delayed-delivery basis.
When-issued securities are securities purchased with delivery to occur at a
later date at a stated price and/or yield, thereby involving the risk that the
price and/or yield obtained may be more or less than those available in the
market when delivery takes place. At the time a Fund makes a commitment to
purchase a security on a when-issued basis, the Fund records the transaction and
reflects the value of the security in determining net asset value. A segregated
account is established and the Fund maintains cash and marketable securities at
least equal in value to commitments for when-issued securities.
Dividends to Shareholders
Dividends from net investment income are declared daily and paid monthly for the
Institutional Money Market Fund, Institutional Reserves Fund, Liquid Assets Fund
and Municipal Assets Fund. Dividends from net investment income are declared and
paid monthly for the Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund.
Distributable net realized capital gains, if any, are declared and distributed
at least annually for each of the Funds.
The dividends from net investment income and distributions from net realized
gains are determined in accordance with federal income tax regulations, which
may differ from GAAP. These "book/tax" differences are either considered
temporary or permanent in nature. To the extent these differences are permanent
in nature, such amounts are reclassified within the composition of net assets
based on their federal treatment; temporary differences do not require
reclassification.
Bank Line of Credit
The Funds have a $5,000,000 bank line of credit agreement with the Bank of New
York. The Funds utilize short-term borrowings when redemptions exceed
expectations or a trade settlement is delayed. Aside from short-term borrowings,
the Funds did not borrow from the line during the period ended September 30,
2006.
Expenses
Expenses attributable to a Fund are charged to that Fund; other expenses of the
Funds are prorated to the Funds on the basis of each Fund's relative net assets
or on another reasonable basis.
Taxes
Each Fund's policy is to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
taxable income to shareholders in amounts that will avoid or minimize federal
income or excise taxes of the Fund.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
period ended September 30, 2006 are as follows:
Proceeds Purchases from
Sales
Limited Term Bond Fund 4,673,841 12,308,890
Bond Fund 4,731,891 21,187,531
Municipal Bond Fund 6,490,422 11,985,393
40
4. Related Party Transactions:
Under the terms of its Investment Advisory Agreement, WB Capital is
entitled to receive fees computed daily on a percentage of the average daily net
assets of each Fund as follows:
Institutional Money Market Fund 0.35%
Institutional Reserves Fund 0.35%
Liquid Assets Fund 0.35%
Municipal Assets Fund 0.35%
Limited Term Bond Fund 0.50%
Bond Fund 0.55%
Municipal Bond Fund 0.50%
WB Capital voluntarily limited advisory fees for the Institutional Money Market
Fund to a range from 0.00 to 0.08 percent, and the Institutional Reserves Fund
to 0.15 percent.
The Funds have entered into a management and administration agreement with WB
Capital pursuant to which the Funds pay administrative fees at an annual rate of
0.21 percent of the average daily net assets for the Money Market Funds and 0.26
percent of the average daily net assets for the Variable Net Asset Funds. WB
Capital voluntarily limited administrative fees for the Institutional Money
Market Fund to a range from 0.00 to 0.07 percent, Institutional Reserves Fund to
0.05 percent, Limited Term Bond Fund to 0.14 percent, Bond Fund to 0.17 percent,
and Municipal Bond Fund to 0.22 percent.
WB Capital also provides fund accounting services for the Funds pursuant to a
Fund Accounting Agreement and receives a fee of 0.03 percent of the average
daily net assets of each Fund for such services. WB Capital voluntarily waived
all fund accounting fees for the Institutional Money Market Fund and
Institutional Reserves Fund, during the period ended September 30, 2006. The
Funds have adopted an Administrative Services Plan (the "Services Plan")
pursuant to which each Fund is authorized to pay compensation to banks and other
financial institutions (each a "Participating Organization") which agree to
provide recordkeeping and/or administrative support services for their customers
or account holders (collectively, "customers") who are beneficial or record
owner of shares of that Fund. In consideration for such services, a
Participating Organization receives a fee from a Fund, computed daily and paid
monthly, at an annual rate of up to 0.25 percent of the average daily net asset
value of shares of that Fund owned beneficially or of record by such
Participating Organization's customers for whom the Participating Organization
provides such services. At September 30, 2006, the Funds are required to pay
servicing fees as follows: 0.25 percent on S Shares of the Liquid Assets and
Municipal Assets Funds, 0.25 percent on S2 Shares of the Liquid Assets Fund, and
0.25 percent on T Shares of the Liquid Assets and Municipal Assets Funds, which
has been reduced to 0.15 percent due to WB Capital supplementing 0.10 percent.
WB Capital has the ability to supplement Administrative Service fees up to 0.25
percent on the Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund.
BISYS Fund Services Limited Partnership serves as distributor to the Fund
pursuant to a Distribution Agreement. The Distributor receives no compensation
under the Distribution Agreement with the Funds, but may receive compensation
under a Distribution and Shareholder Service Plan (the "Plan") adopted pursuant
to Rule 12b-1 under the 1940 Act under which the Funds are authorized to pay the
Distributor for payments it makes to Participating Organizations. As authorized
by the Plan, the Distributor will enter into Shareholder Agreements with
Participating Organizations pursuant to which the Participating Organization
agrees to provide certain administrative and shareholder support services in
connection with Shares of a Fund purchased and held by Customers of the
Participating
41
Organization. The Distributor will be compensated by a Fund up to the amount of
any payments it makes to Participating Organizations under the Rule 12b-1
Agreement. The maximum fee is 0.50 percent on S Shares of the Liquid Assets
Fund, and 0.25 percent on S2 Shares of the Liquid Assets Fund, S Shares of
Municipal Assets Fund, T Shares of the Liquid Assets and Municipal Assets Funds,
Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund. As of September 30,
2006, such fees were limited to 0.40 percent for S Shares of the Liquid Assets
Fund, 0.15 percent for S2 Shares of the Liquid Assets Fund, 0.15 percent for S
Shares of the Municipal Assets Fund and no fees for all other classes and Funds
including T and I Shares for Liquid Assets Fund and Municipal Assets Fund,
Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund. However, WB Capital
as Adviser and Administrator of the Fund may in its sole discretion make
payments to the Distributor to supplement shareholder fees paid by the Fund up
to the maximum fee approved by the Plan without further notice to shareholders
and at no cost to the Fund. During the period ended September 30, 2006, WB
Capital limited distribution fees on S Shares of Liquid Assets Fund and
Municipal Assets fund, and S2 Shares of Liquid Assets Fund and supplemented the
portion of fees waived at the Fund level to the Participating Organization.
WB Capital also serves as the Fund's transfer agent to certain classes of the
Institutional Money Market Fund, Institutional Reserves Fund, S, S2, and I Share
classes of Liquid Assets Fund and S and I Share classes of Municipal Assets
Fund. WB Capital is paid a fee for Transfer Agency Services based on the number
of shareholder accounts serviced or a minimum fee amount. During the period
ended September 30, 2006, WB Capital received $18,000 in transfer agent service
fees. BISYS Fund Services serves as transfer agent to the other classes and
Funds pursuant to a Transfer Agency Agreement with the Funds and receives a fee
for such services.
42
5. Federal Income Taxes:
Each Fund's policy is to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute taxable
income to shareholders in amounts that will avoid or minimize federal income or
excise taxes of the Fund.
The amounts of aggregate unrealized gain (loss) and the cost of investment
securities as of September 30, 2006 for tax purposes follow:
AGGREGATE AGGREGATE NET COST OF
UNREALIZED GAIN UNREALIZED (LOSS) UNREALIZED GAIN (LOSS) INVESTMENTS
------------------- ------------------- ------------------------- ----------------
Institutional Money Market Fund - - - $62,661,202
Institutional Reserves Fund - - - $87,347,213
Liquid Assets Fund - - - $135,654,624
Municipal Assets Fund - - - $15,499,037
Limited Term Bond Fund $60,442 $(395,692) $335,250 $37,272,471
Bond Fund $723,861 $(1,414,710) $(690,849) $80,992,695
Bond Fund $723,862 $(1,414,710) $(690,849) $80,992,696
For tax purposes, the following Funds have capital loss carryovers as of March
31, 2006, the Funds' most recent fiscal year end, which are available to offset
future realized capital gains for Federal income tax purposes. The following
shows the totals by year in which capital loss carryovers will expire if not
used:
LIQUID ASSETS FUND LIMITED TERM BOND FUND BOND FUND
------------------- ---------------------- ---------------
March 31, 2007 $434
March 31, 2008 $32,964
March 31, 2009 $496,477 $415,441
March 31, 2010
March 31, 2011 $4,519 $17,563
March 31, 2012 $6,648 $1,659,350 $1,793,103
March 31, 2013 $88,259
March 31, 2014 $624,709 $8,157
--------------------------------------------------------
Total Carryover $11,167 $2,919,756 $2,216,701
========================================================
At March 31, 2006, the Limited Term Bond Fund and Bond Fund had $281,666 and
$309,321 respectively, in deferred capital losses occurring subsequent to
October 31, 2005. For tax purposes, such losses will be reflected in the year
ended March 31, 2007.
43
PAGE INTENTIONALLY LEFT BLANK
44
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
INVESTMENT ACTIVITIES DIVIDENDS AND DISTRIBUTIONS
--------------------------------------- ---------------------------------------------
Net Net Realized/ From Total
NAV Investment Unrealized Total from From Net Net Return Dividends
Beginning Income Gains Investment Investment Realized of and
of Period (Loss) (Losses) Activities Income Gains Capital Distributions
--------- ------ -------- ---------- ------ ----- ------- -------------
Institutional Money Market Fund
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04)
From March 7, 2005
through March 31, 2005 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
INSTITUTIONAL RESERVES FUND
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
Year Ended March 31, 2005 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2004 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
LIQUID ASSETS FUND "S" SHARES
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
LIQUID ASSETS FUND "S2" SHARES
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized.
(b) Annualized.
45
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA
----------------------------------------------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
NAV Net Assets Expenses to Income (Loss) to Expenses to Income (Loss) to
End Total End of Period Average Average Net Average Average Net
of Period Return (000 omitted) Net Assets Assets Net Assets* Assets*
--------- ------ ------------- ---------- ------ ----------- -------
$1.00 2.51% (a) $62,213 0.19% (b) 4.94% (b) 0.74% (b) 4.38% (b)
$1.00 3.64% (a) $63,486 0.21% (b) 3.94% (b) 0.74% (b) 3.41% (b)
$1.00 0.17% (a) $10,112 0.15% (b) 2.54% (b) 0.74% (b) 1.95% (b)
$1.00 2.42% (a) $86,214 0.31% (b) 4.82% (b) 0.70% (b) 4.43% (b)
$1.00 3.47% $46,155 0.30% 3.43% 0.72% 3.01%
$1.00 1.59% $43,673 0.17% 1.62% 0.72% 1.07%
$1.00 1.03% $33,034 0.14% 1.00% 0.68% 0.46%
$1.00 1.86% (a) $13,811 1.47% (b) 3.72% (b) 1.57% (b) 3.62% (b)
$1.00 2.39% $11,581 1.48% 2.36% 1.58% 2.26%
$1.00 0.56% $13,371 1.32% 0.41% 1.58% 0.16%
$1.00 0.08% $37,139 1.37% 0.08% 1.55% (0.10%)
$1.00 0.56% $74,250 1.36% 0.56% ----- -----
$1.00 2.22% $79,744 1.36% 2.14% ----- -----
$1.00 1.99% (a) $27,668 1.22% (b) 3.89% (b) 1.32% (b) 3.79% (b)
$1.00 2.65% $60,514 1.23% 2.64% 1.33% 2.54%
$1.00 0.77% $48,241 1.16% 0.88% 1.33% 0.71%
$1.00 0.29% $28,748 1.12% 0.29% 1.30% 0.10%
$1.00 0.81% $3,958 1.11% 0.86% ----- -----
$1.00 2.48% $8,519 1.11% 2.44% ----- -----
46
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
INVESTMENT ACTIVITIES DIVIDENDS AND DISTRIBUTIONS
-------------------------------------- -------------------------------------------
NET NET REALIZED/ FROM TOTAL
NAV INVESTMENT UNREALIZED TOTAL FROM FROM NET NET RETURN DIVIDENDS
BEGINNING INCOME GAINS INVESTMENT INVESTMENT REALIZED OF AND
OF PERIOD (LOSS) (LOSSES) ACTIVITIES INCOME GAINS CAPITAL DISTRIBUTIONS
--------- ------ -------- ---------- ------ ----- ------- -------------
Liquid Assets Fund "T" Shares
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
LIQUID ASSETS FUND "I" SHARES
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03)
MUNICIPAL ASSETS FUND "S" SHARES
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2002 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
MUNICIPAL ASSETS FUND "T" SHARES
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized.
(b) Annualized.
47
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA
----------------------------------------------------------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
NAV Net Assets Expenses to Income (Loss) to Expenses to Income (Loss) to
End Total End of Period Average Average Net Average Average Net
of Period Return (000 omitted) Net Assets Assets Net Assets* Assets*
--------- ------ ------------- ---------- ------ ----------- -------
$1.00 2.11% (a) $16,435 0.97% (b) 4.18% (b) 1.07% (b) 4.08% (b)
$1.00 2.90% $27,537 0.98% 3.04% 1.08% 2.94%
$1.00 0.94% $13,461 0.98% 0.93% 1.08% 0.83%
$1.00 0.41% $18,804 0.87% 0.41% 1.05% 0.23%
$1.00 1.06% $29,287 0.86% 1.09% ----- -----
$1.00 2.73% $44,038 0.86% 2.57% ----- -----
$1.00 2.19% (a) $76,160 0.82% (b) 4.41% (b) ----- -----
$1.00 3.06% $32,616 0.83% 3.28% ----- -----
$1.00 1.09% $10,357 0.83% 1.03% ----- -----
$1.00 0.56% $22,734 0.62% 0.56% 0.80% 0.38%
$1.00 1.22% $28,948 0.71% 1.21% ----- -----
$1.00 2.89% $43,041 0.71% 2.72% ----- -----
$1.00 1.09% (a) $812 1.34% (b) 2.15% (b) 1.44% (b) 2.05% (b)
$1.00 1.58% $2,102 1.13% 1.55% 1.32% 1.36%
$1.00 0.54% $2,942 0.90% 0.55% 1.34% 0.10%
$1.00 0.23% $2,783 1.20% 0.24% 1.65% (0.21%)
$1.00 0.35% $2,993 1.10% 0.33% 1.17% 0.26%
$1.00 1.47% $2,151 1.11% 1.40% ----- -----
$1.00 1.22% (a) $3,472 1.09% (b) 2.42% (b) 1.19% (b) 2.32% (b)
$1.00 1.75% $3,276 0.97% 1.72% 1.07% 1.62%
$1.00 0.58% $3,961 0.85% 0.59% 1.09% 0.35%
$1.00 0.26% $3,666 0.95% 0.26% 1.16% 0.05%
$1.00 0.55% $5,493 0.92% 0.56% ----- -----
$1.00 1.70% $6,053 0.86% 1.67% ----- -----
48
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
INVESTMENT ACTIVITIES DIVIDENDS AND DISTRIBUTIONS
--------------------------------------- ---------------------------------------------
NET NET REALIZED/ FROM TOTAL
NAV INVESTMENT UNREALIZED TOTAL FROM FROM NET NET RETURN DIVIDENDS
BEGINNING INCOME GAINS INVESTMENT INVESTMENT REALIZED OF AND
OF PERIOD (LOSS) (LOSSES) ACTIVITIES INCOME GAINS CAPITAL DISTRIBUTIONS
Municipal Assets Fund "I" Shares
Six Months Ended September 30,
2006 (Unaudited) $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01)
Year Ended March 31, 2002 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02)
LIMITED TERM BOND FUND
Six Months Ended September 30,
2006 (Unaudited) $9.41 0.17 0.06 0.23 (0.17) 0.00 0.00 (0.17)
Year Ended March 31, 2006 $9.47 0.30 (0.08) 0.22 (0.28) 0.00 0.00 (0.28)
Year Ended March 31, 2005 $9.76 0.26 (0.29) (0.03) (0.24) 0.00 (0.02) (0.26)
Year Ended March 31, 2004 $9.62 0.28 0.14 0.42 (0.28) 0.00 0.00 (0.28)
Year Ended March 31, 2003 $9.98 0.47 (0.36) 0.11 (0.47) 0.00 0.00 (0.47)
Year Ended March 31, 2002 $9.94 0.55 0.03 0.58 (0.54) 0.00 0.00 (0.54)
BOND FUND
Six Months Ended September 30,
2006 (Unaudited) $9.56 0.21 0.11 0.32 (0.21) 0.00 0.00 (0.21)
Year Ended March 31, 2006 $9.80 0.40 (0.24) 0.16 (0.40) 0.00 0.00 (0.40)
Year Ended March 31, 2005 $10.05 0.40 (0.25) 0.15 (0.40) 0.00 0.00 (0.40)
Year Ended March 31, 2004 $9.78 0.41 0.28 0.69 (0.42) 0.00 0.00 (0.42)
Year Ended March 31, 2003 $9.94 0.58 (0.14) 0.44 (0.59) (0.01) 0.00 (0.60)
Year Ended March 31, 2002 $9.97 0.56 (0.03) 0.53 (0.56) 0.00 0.00 (0.56)
MUNICIPAL BOND FUND
Six Months Ended September 30,
2006 (Unaudited) $10.12 0.17 0.10 0.27 (0.17) 0.00 0.00 (0.17)
Year Ended March 31, 2006 $10.49 0.33 (0.19) 0.14 (0.33) (0.18) 0.00 (0.51)
Year Ended March 31, 2005 $11.02 0.34 (0.38) (0.04) (0.34) (0.15) 0.00 (0.49)
Year Ended March 31, 2004 $11.06 0.37 0.07 0.44 (0.38) (0.10) 0.00 (0.48)
Year Ended March 31, 2003 $10.54 0.40 0.54 0.94 (0.40) (0.02) 0.00 (0.42)
Year Ended March 31, 2002 $10.68 0.41 (0.14) 0.27 (0.41) 0.00 0.00 (0.41)
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not Annualized.
(b) Annualized.
49
VINTAGE MUTUAL FUNDS, INC.
FINANCIAL HIGHLIGHTS
TOTAL RETURN / RATIOS / SUPPLEMENTARY DATA
------------------------------------------------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
Ratio of Investment Ratio of Investment
NAV Net Assets Expenses to Income (Loss) to Expenses to Income (Loss) to
END TOTAL END OF PERIOD AVERAGE AVERAGE NET AVERAGE AVERAGE NET PORTFOLIO
of Period Return (000 omitted) Net Assets Assets Net Assets* Assets* Turnover
--------- ------ ------------- ---------- ------ ----------- ------- -------
$1.00 1.30% (a) $11,133 0.94% (b) 2.57% (b) ----- -----
$1.00 1.90% $12,926 0.82% 1.87% ----- -----
$1.00 0.64% $19,819 0.79% 0.60% 0.84% 0.55%
$1.00 0.30% $27,471 0.70% 0.31% ----- -----
$1.00 0.70% $33,568 0.77% 0.68% ----- -----
$1.00 1.88% $26,516 0.71% 1.82% ----- -----
$9.47 3.16% (a) $37,111 0.76% (b) 3.63% (b) 1.36% (b) 3.05% (b) 45.53%
$9.41 2.31% $44,874 0.89% 3.05% 1.26% 2.68% 64.57%
$9.47 (0.27%) $57,251 0.89% 2.72% 1.24% 2.38% 43.35%
$9.76 4.37% $65,881 0.96% 2.85% ----- ----- 73.81%
$9.62 1.13% $58,746 0.92% 4.73% ----- ----- 55.05%
$9.98 5.96% $54,153 0.93% 5.43% ----- ----- 47.31%
$9.67 2.72% (a) $80,558 0.80% (b) 4.29% (b) 1.34% (b) 3.75% (b) 26.63%
$9.56 1.67% $96,123 0.97% 3.85% 1.27% 3.55% 28.60%
$9.80 1.47% $112,672 0.98% 3.97% 1.28% 3.67% 46.31%
$10.05 7.08% $125,496 0.99% 4.12% ----- ----- 79.75%
$9.78 4.46% $131,296 0.95% 5.78% ----- ----- 32.67%
$9.94 5.20% $143,385 0.99% 5.79% ----- ----- 41.67%
$10.22 2.35% (a) $20,866 0.75% (b) 3.37% (b) 0.76% (b) 2.79% (b) 55.40%
$10.12 1.30% $26,287 0.94% 3.09% 1.19% 2.84% 32.16%
$10.49 (0.34%) $38,569 0.99% 3.15% 1.24% 2.90% 37.92%
$11.02 3.91% $43,520 0.93% 3.30% ----- ----- 24.51%
$11.06 9.06% $47,187 0.85% 3.60% ----- ----- 9.95%
$10.54 2.41% $46,695 0.91% 3.81% ----- ----- 27.61%
50
VINTAGE MUTUAL FUNDS, INC.
Additional Information (unaudited)
September 30, 2006
1. About Your Fund Expenses
It is important for you to understand the impact of costs on your investment.
All mutual funds have operating expenses. As a shareholder of the fund, you
incur ongoing costs, including management fees, distribution and service fees,
and other fund expenses. Expenses, which are deducted from a fund's investment
income, directly reduce the investment return of the fund.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The following examples are intended to
help you understand the ongoing costs (in dollars) of investing in your fund and
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period and held for the
entire period from April 1, 2006 to September 30, 2006. The table on the next
page illustrates your fund's costs in two ways:
1. BASED ON ACTUAL FUND RETURN. This section helps you to estimate the
actual expenses that you paid over the period. The "Ending Account
Value" shown is derived from the fund's actual return, and the third
column shows the dollar amount that would have been paid by an investor
who started with $1,000 in the fund. You may use the information here,
together with the amount you invested, to estimate the expenses that you
paid over the period.
2. BASED ON HYPOTHETICAL 5% RETURN. This section is intended to help you
compare your fund's costs with those of other mutual funds. It assumes
that the fund had a return of 5% before expenses during the period
shown, but that the expense ratio is unchanged. In this case, because
the return used is not the fund's actual return, the results do not
apply to your investment. The example is useful in making comparisons
because the Securities and Exchange Commission requires all mutual funds
to calculate expenses based on a 5% return. You can assess your fund's
costs by comparing this hypothetical example with the hypothetical
examples that appear in shareholder reports of other funds.
Your fund does not carry a "sales load" or transaction fee. The calculations
assume no shares were bought or sold during the period. Your actual costs may
have been higher or lower, depending on the amount of your investment and the
timing of any purchases or redemptions.
You can find more information about the fund's expenses, including annual
expense ratios for the past five years, in the Financial Highlights section of
this report. For additional information on operating expenses and other
shareholder costs, please refer to the appropriate fund prospectus.
51
VINTAGE MUTUAL FUNDS, INC.
Additional Information (unaudited)
SIX MONTHS ENDED SEPTEMBER 30, 2006
BEGINNING ENDING EXPENSES ANNUALIZED
Account Value Account Value Paid During Expense
Vintage Mutual Funds 3/31/2006 9/30/2006 Period* Ratio*
- -----------------------------------------------------------------------------------------------------
BASED ON ACTUAL FUND RETURN
Money Market Funds:
Institutional Money Market Fund $ 1,000.00 $ 1,025.06 $0.96 0.19%
Institutional Reserves Fund 1,000.00 1,024.19 1.57 0.31%
Liquid Assets Fund S Shares 1,000.00 1,018.59 7.44 1.47%
Liquid Assets Fund S2 Shares 1,000.00 1,019.87 3.06 1.22%
Liquid Assets Fund T Shares 1,000.00 1,021.14 2.43 0.97%
Liquid Assets Fund I Shares 1,000.00 1,021.91 2.06 0.82%
Municipal Assets Fund S Shares 1,000.00 1,010.94 3.36 1.34%
Municipal Assets Fund T Shares 1,000.00 1,012.20 2.73 1.09%
Municipal Assets Fund I Shares 1,000.00 1,012.96 2.36 0.94%
Fixed Income Funds:
Limited Term Bond Fund 1,000.00 1,025.17 3.78 0.75%
Bond Fund 1,000.00 1,034.40 3.80 0.75%
Municipal Bond Fund 1,000.00 1,027.43 3.79 0.75%
- -----------------------------------------------------------------------------------------------
BASED ON HYPOTHETICAL 5% RETURN
Money Market Funds:
Institutional Money Market Fund $ 1,000.00 $ 1,024.12 $0.96 0.19%
Institutional Reserves Fund 1,000.00 1,023.51 1.57 0.31%
Liquid Assets Fund S Shares 1,000.00 1,017.70 7.44 1.47%
Liquid Assets Fund S2 Shares 1,000.00 1,018.95 6.17 1.22%
Liquid Assets Fund T Shares 1,000.00 1,020.21 4.91 0.97%
Liquid Assets Fund I Shares 1,000.00 1,020.96 4.15 0.82%
Municipal Assets Fund S Shares 1,000.00 1,018.35 6.78 1.34%
Municipal Assets Fund T Shares 1,000.00 1,019.60 5.52 1.09%
Municipal Assets Fund I Shares 1,000.00 1,020.36 4.76 0.94%
Fixed Income Funds:
Limited Term Bond Fund 1,000.00 1,046.24 3.85 0.75%
Bond Fund 1,000.00 1,046.24 3.82 0.75%
Municipal Bond Fund 1,000.00 1,046.24 3.85 0.75%
- -----------------------------------------------------------------------------------------------
*Expenses are equal to the fund's annualized expense ratio, multiplied by the
average account value over the period, multiplied by number of days in the most
recent fiscal half-year, then divided by 365.
52
VINTAGE MUTUAL FUNDS, INC.
Additional Information (unaudited)
2. Proxy Voting Policies and Procedures, Proxy Voting Record and Schedule of
Portfolio Holdings, Form N-PX
Complete schedules of portfolio holdings for the first and third quarters
(Form N-Q) are available free of charge. Form N-PX is a record of proxy votes by
the Funds. Since the Funds only hold non-voting securities, there are no votes
recorded.
Form N-PX and the Form N-Q are available upon request:
o By calling the Funds toll free at 1-866-720-2995,
o At www.sec.gov, or by phone at 1-800-SEC-0330, or
o By mail at Public Reference Section, SEC, Washington, D.C. 20549
(duplicating fee required).
53
ITEM 2. CODE OF ETHICS.
(A) THE REGISTRANT HAS ADOPTED A CODE OF ETHICS THAT APPLIES TO THE REGISTRANT'S
PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER, PRINCIPAL
ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS PERFORMING SIMILAR FUNCTIONS,
REGARDLESS OF WHETHER THESE INDIVIDUALS ARE EMPLOYED BY THE REGISTRANT OR A
THIRD PARTY.
(B) NO COMMENT REQUIRED.
(C) THE CODE OF ETHICS WAS AMENDED DURING THE REPORTING PERIOD TO INCLUDE
REPORTING ON ALL REQUIRED SECURITIES. PREVIOUSLY LARGE CAP SECURITY
REPORTING WAS NOT REQUIRED UNDER THE CODE.
(D) THERE WAS NO WAIVER GRANTED UNDER THE CODE OF ETHICS DURING THE REPORTING
PERIOD.
(E) NOT APPLICABLE.
(F)(1) NOT APPLICABLE.
(F)(2) NOT APPLICABLE.
(F)(3) TO REQUEST A FREE COPY OF THE VINTAGE MUTUAL FUNDS, INC. CODE OF ETHICS,
PLEASE CALL 1-800-438-6375.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of directors has determined that the registrant
has at least one audit committee financial expert serving on its audit
committee.
(a)(2) Debra Jones is the independent director named as the audit committee
financial expert.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(A) Not Applicable on Semi-annual report.
(B) NOT APPPLICABLE.
(C) SEE ITEM 4(A)
(D) NOT APPLICABLE.
(E) NOT APPLICABLE.
(F) NOT APPLICABLE.
(G) NOT APPLICABLE.
(H) NOT APPLICABLE.
ITEM 5. NOT APPLICABLE.
ITEM 6. NOT APPLICABLE.
ITEM 7. NOT APPLICABLE.
ITEM 8. NOT APPLICABLE.
ITEM 9. NOT APPLICABLE.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
THERE HAVE BEEN NO CHANGES TO THE PROCEDURES BY WHICH A SHAREHOLDER MAY
RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF DIRECTORS.
ITEM 11. CONTROLS AND PROCEDURES.
(A) THE PRINCIPAL EXECUTIVE AND FINANCIAL OFFICERS CONCLUDED THAT THE
REGISTRANT'S DISCLOSURE CONTROLS AND PROCEDURES ARE EFFECTIVE BASED ON THEIR
EVALUATION OF THE DISCLOSURE CONTROLS AND PROCEDURES AS OF NOVEMBER 30,
2006, A DATE WITHIN 90 DAYS OF THE FILING DATE OF THIS REPORT.
(B) THERE WERE NO SIGNIFICANT CHANGES IN REGISTRANT'S INTERNAL CONTROLS OR IN
OTHER FACTORS THAT COULD SIGNIFICANTLY AFFECT THESE CONTROLS SUBSEQUENT TO
THE DATE OF THEIR EVALUATION, INCLUDING ANY CORRECTIVE ACTIONS WITH REGARD
TO SIGNIFICANT DEFICIENCIES AND MATERIAL WEAKNESSES.
ITEM 11. EXHIBITS.
(A) A CERTIFICATION FROM THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL
OFFICER ARE ATTACHED AS EXHIBITS.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934 and the Investment
Company Act of 1940, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
VINTAGE MUTUAL FUNDS, INC.
By /s/ Jeff Lorenzen
--------------------------
Jeff Lorenzen, President
Date: December 1, 2006
Pursuant to the requirements of the Securities Act of 1934 and the Investment
Company Act of 1940, this report has been signed below by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.
Signature and Title
/s/ Jeff Lorenzen President and Principal Executive,
- ------------------
Jeff Lorenzen
December 1, 2006
/s/ Amy M. Mitchell Treasurer and Principal Financial and Accounting Officer,
- --------------------
Amy M. Mitchell
December 1, 2006