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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: 03/31/2007
DATE OF REPORTING PERIOD: 03/31/2007
ITEM 1. REPORTS TO STOCKHOLDERS.
VINTAGE
MUTUAL FUNDS
Annual
Report
To
Shareholders
March 31, 2007
TABLE OF CONTENTS
Performance Reports and Schedules of Portfolio Investments
Page 3
Statements of Assets and Liabilities
Page 26
Statements of Operations
Page 30
Statements of Changes in Net ssets
Page 32
Notes to Financial Statements
Page 38
Financial Highlights
Page 44
Report of Independent Registered Public Accounting Firm
Page 48
Directors and Officers
Page 49
Additional Information
Page 50
Message from the President
We are pleased to present this annual report for the Vintage Mutual Funds
covering the 12-month period from April 1, 2006 through March 31, 2007.
During the 12-month period the investment team continued to produce solid
returns as Federal Monetary policy entered the later stages of its restrictive
cycle. Sound portfolio positioning and good security selection allowed the Funds
to end the year in favorable ranks with their peers. Many of the concerns that
were developing early last year worked in our favor as we continue to manage
toward rising inflation, and a moderating economy. The next year will once again
prove challenging for bond fund managers as volatility remains low and
opportunities to capture strong excess returns are low. However, we continue to
use our creative talents to build portfolios that offer strong, risk-adjusted
performance regardless of the environment.
The Vintage money market funds continued to benefit from a tighter monetary
policy supported by the Federal Reserve. In the last 12 months, the Federal
Reserve raised short-term rates by 75 basis points compared to 200 basis points
the year before. With economic growth moderating, we believe restrictive Federal
Reserve policy is nearing an end and that short-term interest rates will remain
constant for most of 2007. We remain positioned to be responsive to Federal
Reserve action while maximizing the income for our shareholders.
This year brought additional changes to our family of funds. Shareholders of our
Government Assets Fund were transitioned into our Liquid Assets Fund. We
eliminated services that provided little benefit to shareholders as a way to
offer higher net total returns. In conjunction with these changes, the
investment adviser waived fund fees to lower all bond fund expense ratios to 75
basis points. The minimum account balance was also increased to improve fund
efficiencies. All of these changes were implemented to provide our shareholders
with higher net returns.
In closing I would like to thank you for your confidence and loyalty in the
Vintage Mutual Funds. Our daily motivation is driven by the desire to deliver
strong and consistent performance on your behalf.
/s/ Jeffrey D. Lorenzen
Jeffrey D. Lorenzen, CFA
President, Vintage Mutual Funds
The Vintage Mutual Funds are distributed by BISYS Fund Services Limited
Partnership.
Shares of the Vintage Mutual Funds are NOT INSURED BY THE FDIC. 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. An investor should consider the Funds' investment
objectives, risks, charges, and expenses carefully before investing or sending
money. This and other important information about the investment company can be
found in the Funds' prospectus. To obtain more information, please call
1-800-798-1819 or visit the website www.VintageFunds.com. Please read the
prospectus carefully before investing.
1
Message from the Investment Adviser
Dear Shareholders:
Economic growth in the United States has slowed in recent quarters, led by the
substantial correction in the housing market. While many economists believe we
are in for a prolonged slow down and possibly a recession, we remain optimistic
that the economy will continue to generate moderate growth.
Most of the weakness in economic growth over the first six months is related to
the housing market. Following a five-year housing boom, the demand for homes
finally began to weaken in early 2006 on rising interest rates. The housing
market is an important element to the economy as its impact reaches deep. The
weakness seen in the housing market is primarily in new home construction and
sales. Both monthly series, new home sales and housing starts, indicate
year-over-year declines of over 20 percent. Unsold inventories remain high,
signaling continued weakness from this sector for some time. Inventory drag will
likely restrain economic growth for several quarters as the supply of homes
realigns with the number of buyers. One positive note in the housing sector is
existing home sales have actually remained stable, only declining 3 percent on a
year-over-year basis.
Developments in the sub-prime mortgage market late in 2006 also cast a dark
cloud over this struggling sector. Sub-prime mortgages represent borrowers who
do not comply with traditional lending standards. Delinquencies on variable
sub-prime mortgages have recently risen. The rise in delinquencies indicates the
stress these borrowers are having with higher interest rates and a credit
environment difficult for refinancing. The impact on the housing market is still
unclear but tighter lending standards and foreclosed properties will likely add
to the housing drag. With 10 percent of the mortgage market in sub-prime loans,
it's hard to believe this development will derail the economy.
The other weak spot in the economy is the manufacturing sector. During the last
three quarters manufacturing data has softened by most published surveys.
Durable goods sales and factory orders have both softened, also signaling a
weaker sector. Recent jobs data has suggested job market contraction in many
manufacturing industries as companies realign workload with production demand.
Fortunately, the manufacturing sector remains very healthy. Balance sheets are
strong and cash flows are high which will support any slowdown that may be
building.
Traditional economic forces, such as an inverted yield curve and a restrictive
Federal Reserve, have likely induced the housing and manufacturing slowdown.
Combined, the housing and manufacturing sector make up about 10 percent of
economic growth. With both sectors down over 10 percent, a mild slowdown in GDP
growth would be expected. The bright side to the economy is that the consumer
remains healthy.
As we have suggested for some time, a recession is unlikely to occur as long as
the job market is strong. Jobs remain very healthy with year-over-year wage
gains of 4 percent. The U.S. economy has added almost two million new jobs in
the last 12 months and lowered its unemployment rate to 4.4 percent. As long as
jobs remain plentiful and wages are rising faster than inflation, the consumer
should continue to support the economy.
Liquidity in the market also remains very high. Companies continue to generate a
lot of cash. Private equity funds hunger for new acquisitions as cash builds.
Money of zero maturity remains at a healthy 60 percent of real GDP. High
liquidity will keep banks actively seeking loans, provide a boost to the stock
market, and continue to keep bond yields low.
Globally, economic growth has also been strong. Many of our major trading
partners are seeing similar economic growth as the U.S. Growth in the emerging
world is strong, especially commodity-rich countries, and the European economies
are also doing well. The global economy has become much more balanced. This has
helped spur export growth by almost 9 percent over the last year and may finally
be a source of economic growth in 2007.
In summary, we see an economy that is likely to expand at a moderate pace over
the next several quarters. The housing market headwinds will continue as unsold
inventories decline and certain areas of the manufacturing sector will likely
continue to see pressure. But neither of these will likely be significant enough
to dislodge our economy. We remain optimistic for economic growth and believe
the financial markets will continue to reward those who remain patient. We
believe the Federal Reserve will hold their neutral posture toward short-term
rates and intermediate and long-term interest rates will likely remain within a
narrow range as a result. We are positioning portfolios to capture excess
returns through income, yield curve positioning, and sector management. We
believe the market remains unclear as to the overall direction of interest rates
and we remain neutral to our benchmarks. We continue to believe we can
strategically provide strong risk-adjusted returns for investors.
In closing, we appreciate the opportunity to be your selected investment adviser
and will continue to manage your money as if it were our own and strive for
consistent above-market, long-term returns.
/s/ Jeffrey D. Lorenzen
Jeffrey D. Lorenzen, CFA
President and Chief Investment Officer WB
Capital Management Inc.
2
Performance Report
VINTAGE MONEY MARKET FUNDS
The Federal Reserve had no break from mixed economic signals this quarter. While
fourth quarter GDP growth was stronger than originally reported, other measures
of activity declined along with the housing market while inflation remained
above the Federal Reserve's target range. In this gray area the Federal Reserve
remained sidelined, leaving overnight rates at 5.25 percent and the yield curve
inverted. Market expectations for a rate cut have been pushed out to the second
half of 2007 which encourages the addition of longer money market paper to
preserve portfolio yield once the Federal Reserve begins cutting
rates.
INSTITUTIONAL MONEY MARKET FUND
The Fund's average days fell during the quarter as the overall assets increased.
The Fund ended the quarter with an average days position roughly even with the
index which it expects to extend. 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 Federal Reserve.
INSTITUTIONAL RESERVES FUND
The Fund's average days remained above the index as longer bonds were purchased
to lock in yields that will be attractive when the Federal Reserve begins
cutting rates. The Fund ended the quarter 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 Federal Reserve.
LIQUID ASSETS FUND
The Fund's average days remained above the index as longer bonds were purchased
to lock in yields that will be attractive when the Federal Reserve begins
cutting rates. Very short corporate paper is relatively rich reflecting strong
corporate fundamentals, so the Fund is currently adding corporate paper in the
nine to twelve month part of the curve where paper is available and relative
rates appear most attractive. The Fund ended the quarter with an average days
position longer than the index which it expects to maintain.
MUNICIPAL ASSETS FUND
The Fund's average days remained above the index as longer bonds were purchased
to lock in yields that will be attractive when the Federal Reserve begins
cutting rates. The Fund ended the quarter with an average days position longer
than the index which it expects to maintain. 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 Federal Reserve.
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 $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS.
3
Vintage Mutual Funds, Inc.
Institutional Money Market Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
U.S. GOVERNMENT AGENCIES (17.63%)
Federal Farm Credit Bank
1,000,000 5.260% ** 12/27/07........................$ 999,833
Federal Home Loan Bank
500,000 5.239% * 10/05/07...........................487,085
600,000 5.219% * 10/05/07...........................584,502
500,000 3.500% 11/15/07...........................495,243
500,000 2.750% 03/14/08...........................489,098
500,000 3.125% 08/15/07...........................496,296
350,000 3.125% 08/15/07...........................347,222
300,000 3.125% 09/25/07...........................296,759
750,000 3.160% 08/17/07.......................... 744,480
200,000 3.680% 11/28/07...........................197,893
1,000,000 3.250% 12/17/07...........................986,484
1,000,000 4.250% 09/14/07...........................995,892
1,000,000 4.625% 10/24/07...........................997,136
500,000 4.625% 07/18/07...........................499,183
475,000 4.750% 08/17/07...........................474,130
750,000 4.000% 10/22/07...........................745,382
Federal Home Loan Mortgage Corporation
735,000 3.300% 09/14/07...........................728,837
500,000 4.150% 12/07/07...........................496,575
500,000 4.625% 02/21/08...........................497,694
2,000,000 5.248% * 06/26/07.........................1,975,973
1,000,000 5.121% * 09/07/07...........................978,424
500,000 5.119% * 11/13/07...........................484,588
500,000 5.104% * 12/11/07...........................482,790
210,000 5.167% * 12/11/07...........................202,725
Federal National Mortgage Association
500,000 5.150% 11/21/07...........................499,553
1,000,000 3.250% 11/15/07...........................988,884
300,000 6.150% 12/10/07...........................301,934
850,000 3.500% 07/20/07...........................845,793
560,000 5.143% * 10/26/07...........................544,145
------------
Total U.S. Government Agencies 18,864,533
------------
REPURCHASE AGREEMENTS (82.26%)
Barclays Capital
29,000,000 5.36% 04/02/07................................ 29,000,000
(Purchased on 03/30/07, proceeds at
maturity $29,012,953; Collateralized
by $29,936,000 U.S. Government
Agencies, 06/27/07 - 01/02/14,
market value $29,580,372)
Bear Stearns and Company, Inc.
31,000,000 5.38% 04/02/07................................ 31,000,000
(Purchased on 03/30/07, proceeds at maturity
$31,013,898; Collateralized by $31,778,920
U.S. Government Agencies, 06/01/11 - 12/01/36,
market value $31,624,122)
Seattle-Northwest Securities Corporation
28,035,254 5.34% 04/02/07................................ 28,035,254
(Purchased on 03/30/07, proceeds at maturity
$28,047,730; Collateralized by $29,123,000
U.S. Government Agencies, 03/28/08 - 11/15/20,
market value $28,597,447)
-------------
Total Repurchase Agreements 88,035,254
-------------
Total Investments in Securities
(99.89%) (Cost $106,899,787) $ 106,899,787
Other Assets and Liabilities (0.11%) 118,382
-------------
NET ASSETS (100.00%) $ 107,018,169
=============
* Effective yield at date of purchase
**Interest rate fluctuates weekly with 3-month US Treasury bill rate
See note to financial statements
4
Vintage Mutual Funds, Inc.
Institutional Reserves Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
U.S. GOVERNMENT AGENCIES (36.91%)
Federal Farm Credit Bank
181,000 3.250% 06/15/07.............................$ 180,228
1,000,000 5.260% ** 12/27/07............................. 999,833
Federal Home Loan Bank
1,190,000 2.250% 07/02/07.............................1,181,207
920,000 2.400% 12/28/07............................. 901,917
500,000 5.239% * 10/05/07............................. 487,085
1,000,000 5.219% * 10/05/07............................. 974,171
1,145,000 3.500% 11/15/07.............................1,133,990
1,000,000 2.750% 03/14/08............................. 978,195
300,000 3.480% 11/27/07............................. 296,714
700,000 3.110% 06/22/07............................. 696,682
235,000 3.125% 12/24/07............................. 231,421
350,000 3.010% 12/28/07............................. 344,429
235,000 4.230% 01/28/08............................. 233,064
500,000 4.250% 09/14/07............................. 497,945
1,000,000 4.625% 07/18/07............................. 998,367
1,000,000 4.450% *** 09/06/07............................. 999,827
1,000,000 4.940% ****11/21/07.............................1,000,000
1,000,000 5.220% ** 11/28/07.............................1,000,000
Federal Home Loan Mortgage Corporation
275,000 4.500% 05/17/07............................. 274,693
1,000,000 4.150% 12/07/07............................. 993,150
361,000 4.500% 11/15/07............................. 359,559
1,000,000 5.000% 09/07/07............................. 999,420
1,000,000 4.125% 04/02/07............................. 999,966
1,605,000 3.750% 04/15/07.............................1,604,053
1,000,000 5.222% * 12/07/07............................. 965,236
300,000 4.000% 10/19/07............................. 299,499
Federal National Mortgage Association
500,000 5.150% 11/21/07............................. 499,553
800,000 4.750% 08/03/07............................. 798,709
235,000 4.200% 03/24/08............................. 232,747
860,000 2.625% 10/01/07............................. 849,079
2,000,000 5.289% * 09/18/07.............................1,952,022
500,000 4.000% 01/28/08............................. 494,844
------------
Total U.S. Government Agencies 24,457,605
------------
REPURCHASE AGREEMENTS (63.26%)
Barclays Capital
14,000,000 5.36% 04/02/07.................................. 14,000,000
(Purchased on 03/30/07, proceeds at
maturity $14,006,253; Collateralized by
$14,464,000 U.S. Government Agency,
06/27/07, market value $14,280,307)
Bear Stearns and Company, Inc.
15,000,000 5.38% 04/02/07................................... 15,000,000
(Purchased on 03/30/07, proceeds at
maturity $15,006,725; Collateralized by
$15,351,317 U.S. Government Agencies,
04/01/21 - 04/01/37, market value
$15,301,683)
Seattle-Northwest Securities Corporation
12,917,041 5.34% 04/02/07................................... 12,917,041
(Purchased on 03/30/07, proceeds at
maturity $12,922,789; Collateralized by
$13,420,000 U.S. Government Agencies,
08/22/07 - 11/15/25, market value
$13,175,994)
------------
Total Repurchase Agreements 41,917,041
------------
Total Investments in Securities
(100.17%) (Cost $66,374,646) $ 66,374,646
Other Assets and Liabilities (-0.17%) (111,257)
------------
NET ASSETS (100.00%) $ 66,263,389
============
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill
*** Interest rate fluctuates monthly with 2-year US Treasury note
**** Interest rate fluctuates monthly with 1-year US Treasury note
See note to financial statements
5
Vintage Mutual Funds, Inc.
Liquid Assets Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
U.S. GOVERNMENT AGENCIES (10.63%)
Federal Home Loan Bank
700,000 3.000% 12/28/07.............................. $ 688,444
1,000,000 4.000% 02/20/08.............................. 995,701
2,625,000 5.000% 12/28/07.............................. 2,620,288
1,000,000 4.450% ***** 09/06/07.............................. 999,827
1,575,000 4.450% ***** 09/06/07.............................. 1,574,726
1,000,000 4.940% ****** 11/21/07.............................. 1,000,000
1,000,000 4.940% ****** 11/21/07.............................. 1,000,000
1,000,000 5.220% ** 11/28/07.............................. 1,000,000
Federal National Mortgage Association
1,000,000 3.375% 05/15/07.............................. 997,613
1,000,000 3.750% 12/28/07.............................. 989,537
1,500,000 4.000% 01/28/08.............................. 1,484,531
-------------
Total U.S. Government Agencies 13,350,667
-------------
LOAN CERTIFICATES - FMHA GUARANTEED LOAN
CERTIFICATES (9.80%)
12,298,596 5.85% - 6.0*%
04/02/07 to 03/11/45.....................................12,298,596
-------------
COMMERCIAL PAPER (18.89%)
American Honda Finance
1,039,000 5.275% * 04/10/07...............................1,037,639
1,000,000 5.267% * 04/23/07............................... 996,810
Bank of America Corporation
500,000 5.295% * 05/03/07............................... 497,671
1,100,000 5.286% * 06/15/07...............................1,088,038
Barclays Funding
1,000,000 5.298% * 05/14/07............................... 993,753
Cooperative Association Tractor
467,000 5.279% * 04/04/07............................... 466,798
1,000,000 5.246% * 06/04/07............................... 990,791
1,000,000 5.514% * 06/15/07............................... 989,146
Danske Corporation
1,000,000 5.266% * 04/09/07............................... 998,838
1,000,000 5.276% * 04/11/07............................... 998,539
1,000,000 5.280% * 06/08/07............................... 990,159
General Electric Capital Corporation
1,000,000 5.302% * 06/08/07............................... 990,140
HSBC USA, Inc.
1,000,000 5.275% * 04/10/07............................... 998,690
COMMERCIAL PAPER (CONT.)
Northern Rock
1,000,000 5.290% * 04/20/07............................... 997,232
1,000,000 5.281% * 04/30/07............................... 995,779
1,000,000 5.304% * 05/23/07............................... 992,438
Paccar Financial Corporation
1,050,000 5.274% * 04/04/07...............................1,049,543
1,000,000 5.290% * 04/19/07............................... 997,390
1,000,000 5.284% * 05/01/07............................... 995,650
Three Rivers Funding Corporation
1,000,000 5.285% * 04/09/07................................ 998,831
1,000,000 5.291% * 04/23/07............................... 996,783
Triple A One Funding Corporation
542,000 5.290% * 04/16/07............................... 540,810
UBS Finance
750,000 5.270% * 04/03/07............................... 749,781
1,209,000 5.299% * 04/05/07...............................1,208,296
1,160,000 5.300% * 04/11/07...............................1,158,311
-------------
Total Commercial Paper 23,717,856
-------------
CORPORATE BONDS (26.15%)
Banking & Financial
Bank of America Corporation
1,340,000 3.850% 02/15/08...............................1,324,483
CIT Group, Inc.
1,000,000 7.375% 04/02/07...............................1,000,045
1,000,000 7.375% 04/02/07...............................1,000,050
1,000,000 5.750% 09/25/07...............................1,002,392
J.P. Morgan
1,000,000 4.125% 09/01/07............................... 994,969
National City Bank
1,000,000 4.000% 09/28/07............................... 994,010
Wachovia Corporation
830,000 4.125% 08/15/07............................... 826,296
Computer Hardware
Hewlett-Packard Company
1,000,000 5.500% 07/01/07...............................1,000,410
1,000,000 3.625% 03/15/08............................... 985,500
IBM Corporation
1,505,000 6.450% 08/01/07...............................1,510,650
1,020,000 6.450% 08/01/07...............................1,023,508
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill
*** 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
See note to financial statements
6
Vintage Mutual Funds, Inc.
Liquid Assets Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
CORPORATE BONDS (CONT.)
Electric Utility
Southern Company
2,000,000 4.875% 07/15/07.............................$ 1,997,416
1,000,000 4.875% 07/15/07............................. 998,643
Financial Services
Bear Stearns Company
1,000,000 7.800% 08/15/07............................. 1,008,842
1,000,000 4.000% 01/31/08............................. 990,118
1,000,000 4.711% **** 04/04/08............................. 1,000,000
Caterpillar Financial Services
665,000 4.875% 06/15/07............................. 664,145
1,000,000 4.875% 06/15/07............................. 999,065
325,000 3.100% 05/15/07............................. 324,082
500,000 3.625% 11/15/07............................. 495,657
1,000,000 3.800% 02/08/08............................. 988,439
Credit Suisse FB USA
1,000,000 4.625% 01/15/08............................. 995,435
1,000,000 5.400% 12/21/07............................. 1,000,000
Lehman Brothers Holdings
2,500,000 4.000% 01/22/08............................. 2,476,997
Merrill Lynch and Company
500,000 4.000% 11/15/07............................. 496,137
1,000,000 3.000% 04/30/07............................. 997,941
Morgan Stanley
1,000,000 5.800% 04/01/07............................. 1,000,000
1,000,000 5.800% 04/01/07............................. 1,000,000
National Rural Utilities
1,000,000 3.875% 02/15/08............................. 989,186
Miscellaneous
Kuehn Enterprises
950,000 5.270% *** 10/01/43............................. 950,000
Schneider Capital Finance
1,805,000 5.270% *** 07/01/43............................. 1,805,000
-------------
Total Corporate Bonds 32,839,416
-------------
Total Unaffiliated Issuers 82,206,535
-------------
REPURCHASE AGREEMENTS (36.23%)
Barclays Capital
21,492,720 5.360% 04/02/07....................................$ 21,492,720
(Purchased on 03/30/07, proceeds at
maturity $21,502,320; Collateralized by
$22,205,000 U.S. Government Agency,
06/27/07, market value $21,922,997)
Bear Stearns and Company, Inc.
24,000,000 5.380% 04/02/07.................................... 24,000,000
(Purchased on 03/30/07, proceeds at
maturity $24,010,760; Collateralized by
$24,057,002 U.S. Government Agencies,
03/01/21 - 02/01/37, market value
$24,481,493)
-------------
Total Repurchase Agreements 45,492,720
-------------
Total Investments in Securities
(101.70%) (Cost $127,699,255) $ 127,699,255
Other Assets and Liabilities (-1.70%) (2,140,592)
-------------
NET ASSETS (100.00%) $ 125,558,663
=============
* Effective yield at date of purchase
** Interest rate fluctuates weekly with 3-month US Treasury bill
*** 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
See note to financial statements
7
Vintage Mutual Funds, Inc.
Municipal Assets Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
MUNICIPAL BONDS (99.22%)
Arizona (0.73%)
100,000 Apache County, AZ Development
3.650%** 12/15/18............................. $ 100,000
California (1.45%)
200,000 Riverside County, CA
3.550%** 12/01/15............................. 200,000
Connecticut (0.74%)
100,000 Connecticut State
5.000% 11/01/07............................. 101,816
Florida (5.64%)
100,000 Broward County, FL Schools
5.375% 07/01/07............................. 101,442
175,000 Nassau County, FL Pollution Control
Revenue
3.650%** 10/01/08............................. 175,000
100,000 Pasco County, FL Water
4.000% 10/01/07............................. 100,217
400,000 Sarasota, FL Hospital Commercial
Paper
3.560%** 04/03/07............................. 400,000
Georgia (8.68%)
295,000 Georgia State, Series D
4.000% 11/01/07............................. 295,643
500,000 Marietta, GA Housing
3.650%** 07/01/24............................. 500,000
400,000 Muni Electric Authority, GA
Commercial Paper
3.580%*** 04/02/07............................. 400,000
Illinois (3.66%)
200,000 Cook County, IL
7.250% 11/01/07............................. 204,258
300,000 Illinois Health NW Hospital
3.700%** 08/15/25............................. 300,000
Iowa (3.52%)
100,000 Iowa Finance Hospital Facility
3.650%** 07/01/13............................. 100,000
385,000 Iowa Finance West Foundation
3.670%** 01/01/32............................. 385,000
Maryland (1.45%)
200,000 Maryland Health and Higher
Education
3.630%** 10/01/37............................. 200,000
Massachusetts (3.63%)
500,000 Boston, MA Commercial Paper
3.580%*** 05/02/07.............................. 500,000
Michigan (2.21%)
200,000 Michigan State Strategic Fund
5.500% 08/01/07.............................. 203,250
100,000 Yale, MI Public Schools
6.375% 05/01/07.............................. 100,232
Minnesota (2.18%)
200,000 Kimball, MN Independent School
District #739
4.000% 9/24/07.............................. 200,229
100,000 Minnesota State
5.000% 08/01/07.............................. 100,490
Nebraska (1.09%)
150,000 Nebraska Education Finance
Authority
3.790%* 12/15/35.............................. 150,000
New Hampshire (1.09%)
150,000 New Hampshire Health and
Education
3.610%** 06/01/23.............................. 150,000
New Mexico (2.90%)
400,000 Las Cruces, NM Gross Receipts
Tax Revenue
3.500% 06/01/07.............................. 399,801
New York (1.28%)
175,000 New York State
4.000% 12/15/07.............................. 175,541
North Carolina (2.90%)
400,000 Board of Governors University of
North Carolina Commercial Paper
3.560%*** 04/04/07.............................. 400,000
Ohio (11.26%)
400,000 Cincinnati and Hamilton Counties, OH
3.790%* 09/01/25.............................. 400,000
300,000 Clinton County, OH Hospital
3.690%** 06/01/32.............................. 300,000
50,000 Ohio State University
3.650%** 12/01/21.............................. 50,000
300,000 Ohio State University
3.650%** 12/01/31.............................. 300,000
500,000 Warren County, OH
3.680%** 07/01/23.............................. 500,000
* Variable rate, put option subject to no longer than 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)
See note to financial statements
8
Vintage Mutual Funds, Inc.
Municipal Assets Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
MUNICIPAL BONDS (CONT.)
Pennsylvania (24.54%)
200,000 Allegheny County, PA Development
3.700%** 08/01/32............................. $ 200,000
200,000 Allentown, PA Development
3.760%* 12/01/29............................. 200,000
685,000 Benzinger Township, PA
3.670%** 12/01/30............................. 685,000
550,000 Erie County, PA Hospital
3.760%* 05/15/20............................. 550,000
600,000 Moon Industrial Development Authority, PA
3.670%** 06/01/25............................. 600,000
145,000 New Castle, PA Hospital
3.670%** 07/01/26............................. 145,000
500,000 Pennsylvania State University
3.640%** 04/01/31............................. 500,000
500,000 Philadelphia, PA Industrial Development Revenue
3.760%* 03/01/27............................. 500,000
Texas (7.63%)
100,000 Galena Park, TX Independent School District
4.750% 08/15/07............................. 100,454
400,000 Harris County, TX Industrial Development
3.700%** 02/01/20............................. 400,000
400,000 Houston, TX Commercial Paper
3.600%*** 06/01/07............................. 400,000
150,000 Hurst Euless, TX Community School District
4.000% 08/15/07............................. 150,243
Washington (5.92%)
700,000 Lake Tapps Parkway, WA
3.720%** 12/01/19............................. 700,000
115,000 Vancouver, WA Series 84-B
3.670%** 12/01/09............................. 115,000
Wisconsin (3.82%)
200,000 Eagle River, WI
4.000% 10/01/07............................. 200,206
125,000 Fond du Lac, WI
3.750% 05/01/07............................. 125,021
200,000 Menomonee Falls, WI
4.460% 12/01/07............................. 201,049
Wyoming (2.90%)
400,000 Sweetwater County, WY Commercial
Paper
3.460%*** 06/06/07............................. 400,000
------------
Total Municipal Bonds 13,664,892
------------
MUTUAL FUNDS (2.76%)
179,558 AIM Institutional Tax Free Cash
3.455%* 04/02/07............................. $ 179,558
200,000 Lehman Brothers Tax-Free Fund
3.480%* 04/02/07............................. 200,000
------------
Total Mutual Funds 379,558
------------
Total Investments in Securities
(101.98%) (Cost $14,044,450) $ 14,044,450
Other Assets and Liabilities (-1.98%) (272,259)
------------
NET ASSETS (100.00%) $ 13,772,191
============
* Variable rate, put option subject to no longer than 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)
See note to financial statements
9
Performance Report
VINTAGE FIXED INCOME FUNDS
During the past twelve months, financial assets have increased in value, the
Federal Reserve paused its campaign to raise the Federal Reserve funds rate and
economic growth slowed to levels below its potential. Equity markets moved
higher as the Standard & Poor's 500 index advanced 11.82 percent. Fixed income
returns were also healthy as the Lehman Aggregate index rose 6.59 percent.
Interest rates fell slightly during the year as the market began anticipating
the Federal Reserve's first cut in rates, immediately after its last rate
increase. The ten-year U.S. Treasury rate fell 0.20 percent to finish the period
at 4.64 percent.
The Federal Reserve increased the Federal Reserve funds rate twice during the
past year at its May and June meetings. The rate has remained at 5.25 percent
following each of the ensuing six meetings. The timing of stopping the Federal
Reserve's rate hike campaign was consistent with a slowing of the U.S. domestic
economy. First quarter 2006 growth, as measured by the gross domestic product
(GDP), of 5.6 percent slowed considerably throughout the remainder of the year
as the following three quarters of 2006 grew at rates of 2.6, 2.0 and 2.5
percent, respectively. Growth has slipped slightly below the economy's
potential, while inflation has yet to pull back. At the time of the Federal
Reserve's last rate increase, the core personal consumption expenditures price
index (PCE) was measured at 2.3 percent. The Federal Reserve's unofficial
desired level of inflation is between one and two percent. The most current
readings of the core PCE indicate a slightly higher level of inflation at 2.4
percent.
The Federal Reserve has been successful in slowing the economy, but the real
concern to fixed income investors is the persistency of inflation. The Federal
Reserve has called high resource utilization as its concern of pushing
inflation, and hence interest rates, higher. Two prominent measures of resources
are labor and unused capacity. Job growth over the past year has been above
expectations. Monthly job creation has averaged more than 160,000 new jobs per
month. The current labor force requires only 100,000 jobs per month to employ
new entrants to the work force. As a result, the unemployment rate marched lower
from 4.70 percent in March 2006 to 4.40 percent in March 2007. In a similar
fashion, capacity utilization has remained above the eighty percent inflationary
threshold throughout the past year. With a shrinking pool of available workers
and little idle capacity added to the economic system, the potential for levels
of inflation remaining above the Federal Reserve's target range is real.
The global economy continues to show solid growth along with interest rate
increases from local central banks. Certainly, many emerging markets such as
China have seen growth rates remain in the high single digits for an extended
period of time. Growth in developed nations such as the Euro area has
accelerated from 2.2 percent to 3.3 percent over the past year. The United
Kingdom has seen growth improve from 2.4 percent up to 3.0 percent while Japan
has continued to make progress and maintain growth rates above 2.0 percent.
As growth has been maintained, global short rates have moved higher also. Global
short rates rose 0.80 percent over the past twelve months as each of the major
industrialized nations tightened monetary policy. The U.S. halted raising rates
last summer, but countries including the U.K., the Euro-block and even Japan
have raised short term rates in the past six months. There is a global movement
afoot to reduce liquidity at a gradual pace.
Domestic interest rates fell across short and intermediate maturities over the
past year, while three and six month rates moved higher in sympathy with the
Federal Reserve funds rate. Short-term interest rates fell slightly more than
intermediate and long rates, leaving the yield curve with a very modest upward
slope. The yield curve did, however, spend much of the year inverted by five to
fifteen basis points between two and ten years. On March 31, 2007, the two-year
Treasury yield was 4.58 percent. Investors were compensated only an additional
..08 percent or 4.64 percent for purchasing ten-year Treasury notes. A year ago
many market prognosticators suggested the flat yield curve would lead to a
recession in 2006. These doomsday machines were incorrect and we believe the
economy will continue to advance, albeit at a less than exciting rate.
The bond market has had its eyes on two major issues to start 2007: subprime
mortgage delinquencies and corporate event risk. Subprime borrowers are
classified as those people with credit scores less than 660 (prime borrowers
have a score above 700) and make up approximately 10 percent of the total
mortgage market. Payment delinquencies have recently increased on many loans
originated in 2006 due to lax underwriting standards used by a number of loan
originators. While higher delinquencies and defaults will force some originators
out of business (several have already filed for bankruptcy) and cause lending
standards to rise, we expect the impact on the vast majority of home buyers to
be muted. WB Capital has made investments in subprime mortgages, but mostly in
AAA-rated securities with 20 percent or greater credit support at purchase.
These securities have a very low likelihood of experiencing any impairment or
loss.
Event risk continues to pester corporate bond investors. Private equity has
raised large sums of money targeted at taking companies private and adding
leverage. To keep private equity away, some companies have borrowed to fund
dividends and share repurchases. Each of these events has the possibility of
causing corporate bond prices to fall as credit quality declines. What's an
investor to do? Fundamental analysis is critical in identifying and avoiding
firms that are in susceptible industries or meet a number of risk factors for
adding leverage. Risk is further managed through selective diversification,
hence limiting the impact of any single corporate bond issuer on the entire
portfolio.
Our outlook for the fixed income markets is for range-bound interest rates, the
Federal Reserve to leave the Federal Reserve funds rate at 5.25 percent through
at least the third quarter of 2007 or longer and modest outperformance from the
risk sectors of the fixed income universe. This outlook is supported by four
main themes: moderate economic expansion, sustained albeit slowing corporate
profitability, continued job growth and moderate rates of inflation. Consumer
spending (more than two-thirds of the economy) is buoyed by increasing
employment. Corporate profit growth and high profit margins generate the ability
to pay for capital expenditures.
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 continue to
maintain a focus on capital preservation.
10
VINTAGE LIMITED TERM BOND FUND
Fixed income total returns were healthy during the past twelve months as
interest rates fell slightly and bond prices rose, supplementing the Fund's
income benefits. The two-year Treasury reached its peak for the past year in
June, 2006 with a yield of 5.28 percent. The peak in interest rates coincided
with the end of the Federal Reserve's rate hike campaign. Interest rates fell
into fall and in late winter following multiple Federal Reserve meetings without
a change in the Federal Reserve funds rate. Since the Federal Reserve stopped
raising rates, the market has anticipated an interest rate cut that continues to
elude. The two-year Treasury twice reached a low of 4.51 percent once in
December, 2006 and again in March, 2007. All told, interest rates moved
approximately 0.80 percent during the year from peak to trough, which is a
slightly below normal amount of interest rate volatility. Since August, 2006,
short-term rates have traded in an even narrower range of 0.50 percent. For the
year, the Vintage Limited Term Bond Fund outperformed its benchmark before
expenses, yet trailed after expenses.
Portfolio performance during the period benefited from an overweight to the
major risk sectors of the bond market, superior security selection and an income
advantage relative to the benchmark. Corporate bonds held an overweight position
and posted the best returns, topping Treasuries by 0.83 percent over the past
year. Mortgage-backed securities placed second, beating Treasuries by 0.71
percent. The overweight to asset-backed securities also added value, beating
Treasuries by 0.44 percent. Many of the portfolio's corporate bond holdings
outperformed the overall corporate bond basis. Security selection was especially
important as avoiding issues involved in takeovers and significant leveraging
events also contributed to relative performance. Overweight allocations are
driven by the opportunity to capture additional income while balancing portfolio
risk. The portfolio continues to maintain an income advantage with managed risk
taking. In total, active investment decisions enhanced performance.
Our fixed income strategy is guided by our central forecast of both the economy
and the markets. Our economic forecast is for moderate growth slightly below
potential for the next several quarters. Job growth will continue to absorb new
entrants resulting in a stable unemployment rate and high levels of capacity
utilization. Core inflation is expected to remain elevated above the desired 1.0
- - 2.0 percent range. Expectations are for the Federal Reserve funds rate to
remain unchanged at 5.25 percent through at least the third quarter, if not all
of 2007. As the Federal Reserve was slow to raise rates throughout this cycle,
we believe their actions to ease will also be prolonged.
The investment strategy is focused on holding less interest rate risk than the
benchmark and continues to hold an overweight in fixed income sectors that
generate an income advantage over the index. Corporate bonds, asset-backed
securities and mortgage-backed securities continue to hold overweight positions.
U.S. Treasury allocations continue to possess a significant underweight. An
expectation of sustained economic and job growth supports the strategy.
11
Performance Report (unaudited)
Graph Omitted - Information presented
Value of $10,000 Investment
Average Annual Returns
as of 3/31/2007
1 Year 5 Year 10 Year Value
------ ------ ------- -----
Vintage Limited Term Bond Fund 4.98% 2.49% 4.20% $15,107
Lehman Brothers 1-3 Yr Gov't/Credit Index 5.30% 3.55% 5.06% $16,381
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE; PAST PERFORMANCE IS NOT
PREDICATIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN THE VINTAGE MUTUAL FUNDS
WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO
CHANGE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED BY
ACCESSING THE WEBSITE AT WWW.VINTAGEFUNDS.COM.
Bond funds will tend to experience smaller fluctuations in value than stock
funds. However, investors in any bond fund should anticipate fluctuations in
price, especially for longer-term issues and in an environment of rising
interest rates.
The performance of the Vintage Limited Term Bond Fund is measured against the
Lehman Brothers 1-3 Year Government/Credit Index which represents the
performance of government and corporate bonds with maturities of 1-3 years. The
index is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management fees. The Fund's performance reflects
the deduction of fees for these value-added services. The performance table and
graph do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares.
12
Vintage Mutual Funds, Inc.
Limited Term Bond Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
U.S. GOVERNMENT AGENCIES (20.49%)
1,000,000 Federal Home Loan Mortgage Corp., 5.750%
3/15/09.............................................. $ 1,015,960
2,300,000 Federal National Mortgage Assoc., 6.625%
09/15/09.............................................. 2,393,113
3,000,000 Federal National Mortage Assoc., 7.125%
06/15/10.............................................. 3,204,639
-----------
Total U.S. Government Agencies 6,613,712
-----------
MORTGAGE RELATED SECURITIES (41.37%)
Airlines (0.25%)
80,749 Cont. Airlines Certs, 6.410%
04/15/07............................................... 80,749
-----------
Collateralized Mortgage Obligations (6.02%)
904,088 Federal Home Loan Mortgage Corp. 2971
Class PE
4.500%, 03/15/26......................................... 893,320
879,893 Federal Home Loan Mortgage Corp. 3089
Class LP
5.500%, 12/15/29......................................... 883,960
54 Federal National Mortage Assoc. 1993-14
Class A
6.000%, 02/25/08......................................... 54
137,913 Structured Asset 2001-1 B2, 7.120%
02/25/31............................................... 137,422
29,457 Structured Asset Sec, 5.330%
04/25/32............................................... 29,349
-----------
1,944,105
-----------
Federal Home Loan Mortgage Corp.
Mortgage-Backed Pools (12.41%)
7,384 Pool #E61274, 7.000%
08/01/09................................................ 7,400
699,017 Pool #M90830, 3.500%
08/01/08................................................ 680,126
953,333 Pool #M90842, 4.000%
09/01/08................................................ 940,355
396,845 Pool #M90877, 4.000%
12/01/08................................................ 389,930
707,607 Pool #M90980, 5.000%
05/01/10................................................ 705,159
736,734 Pool #M90988, 5.000%
07/01/10................................................ 734,186
554,610 Pool #M90876, 4.000%
11/01/08................................................ 546,659
-----------
4,003,815
-----------
Federal National Mortgage Assoc.
Mortgage-Backed Pools (2.61%)
864,706 Pool #254711, 4.000%
03/01/10................................................ 841,024
-----------
Asset Backed Securities (20.09%)
443,000 Amresco 1997-2 M1F, 7.430%
06/25/27............................................... 441,345
1,110,000 Chase Mtg 2003-4 1A5, 5.416%
05/25/33............................................... 1,107,552
561,751 Chase Mtg 2003-6 1A3, 3.340%
05/25/26............................................... 554,908
28,239 Conseco Fin Series, 7.272%
06/15/32............................................... 28,288
893,000 CountryWide ABS, 5.971%
09/25/46............................................... 901,961
393,106 CountryWide ABS, 4.575%
07/25/35............................................... 390,455
91,424 First Alliance Step, 6.520%
09/20/29............................................... 91,134
271,484 Green Tree, 7.350%
05/15/27............................................... 281,474
217,674 Green Tree, 7.600%
10/15/27............................................... 225,442
38,115 IMC Home Equity, 7.080%
08/20/28............................................... 38,004
167,910 Indymac 1998-2 A2, 6.170%
12/25/11............................................... 164,031
1,300,000 POPLR 2005-B AF3, 4.620%
08/25/35............................................... 1,284,746
630,522 RAMP 2004-RS12 AI3, 3.981%
04/25/29............................................... 625,985
350,000 RAMP 2005-RS1, 4.109%
01/25/35............................................... 346,211
-----------
6,481,536
-----------
Total Mortgage Related Securities 13,351,229
-----------
MUNICIPAL BONDS (0.14%)
Rev Bond - Education
45,000 Azusa Pacific Univ, 7.250%
04/01/09...................................................45,723
-----------
See note to financial statements
13
Vintage Mutual Funds, Inc.
Limited Term Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
CORPORATE BONDS (35.41%)
Automotive Finance (0.93%)
300,000 Daimler Chrysler NA, 4.750%
01/15/08.............................................. $ 298,586
-----------
Banking & Financial (6.76%)
300,000 Bank of America Corp., 3.875%
01/15/08................................................. 296,664
300,000 CIT Group Inc., 5.750%
09/25/07................................................. 300,598
400,000 General Elec Cap Crp, 4.625%
09/15/09................................................. 396,787
300,000 HSBC Finance Corp., 4.750%
04/15/10................................................. 296,838
300,000 JP Morgan Chase, 5.250%
05/30/07................................................. 299,899
300,000 US Bank NA, 4.125%
03/17/08................................................. 296,792
300,000 Wells Fargo Company, 4.000%
08/15/08................................................. 295,031
-----------
2,182,609
-----------
Banks - International (0.91%)
300,000 Wachovia Corp., 3.500%
08/15/08................................................. 293,025
-----------
Beverages (1.23%)
400,000 Diageo Capital PLC, 3.500%
11/19/07................................................. 395,630
-----------
Broker - Dealer (0.90%)
300,000 Morgan Stanley, 4.000%
01/15/10................................................. 291,583
-----------
Electric Utility (1.52%)
192,000 Arkansas Elec., 7.330%
06/30/08................................................. 195,262
300,000 Duke Energy Corp., 3.750%
03/05/08................................................. 295,823
-----------
491,085
-----------
Financial Services (6.41%)
300,000 Amer Gen Fin AIG, 2.750%
06/15/08................................................. 291,610
300,000 Citigroup Inc., 3.500%
02/01/08................................................. 295,897
400,000 Countrywide Hm Loan, 3.250%
05/21/08..................................................390,906
300,000 Goldman Sachs Group, 4.500%
06/15/10................................................. 294,924
Financial Services (cont.)
200,000 John Deere Corp., 3.625%
05/25/07............................................... 199,485
300,000 Lehman Bros Holdings, 4.000%
01/22/08............................................... 296,615
300,000 Wash Mut Finance, 4.375%
01/15/08............................................... 297,672
-----------
2,067,109
-----------
Food Products (0.95%)
300,000 Kroger Co., 7.450%
03/01/08................................................ 305,709
-----------
Forest Prorducts (1.25%)
400,000 Weyerhaeuser Co., 5.950%
11/01/08................................................ 403,499
-----------
Mfg. Capital Goods (1.25%) 400,000 Tyco Intl. Group, 6.125%
11/01/08................................................ 405,385
-----------
Media (4.02%)
300,000 AOL Time Warner, 6.150%
05/01/07................................................ 300,079
400,000 Comcast Cble Comm, 8.375%
05/01/07................................................ 400,904
300,000 Disney Company, 5.375%
06/01/07................................................ 300,084
300,000 Gannett Company, 4.125%
06/15/08................................................ 296,003
-----------
1,297,070
-----------
Oil & Gas (0.94%)
300,000 Marathon Oil Corp., 5.375%
06/01/07................................................. 299,936
-----------
REIT (0.94%)
300,000 Simon Prop Grp REIT, 6.375%
11/15/07................................................. 301,651
-----------
Retail Gen Mdse (1.24%)
400,000 Target Corp, 5.500%
04/01/07............................................... 400,000
-----------
Telecommunications (6.18%)
300,000 America Movil SA, 4.125%
03/01/09................................................ 294,158
300,000 AT&T Inc. SBC Comm., 4.125%
09/15/09................................................ 293,248
300,000 AT&T Wireless, 7.500%
05/01/07................................................ 300,451
See note to financial statements
14
Vintage Mutual Funds, Inc.
Limited Term Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
CORPORATE BONDS (CONT.)
Telecommunications (cont.)
300,000 Sprint Corp., 6.125%
11/15/08............................................... $ 303,815
300,000 Telus Corporation, 7.500%
06/01/07............................................... 300,950
500,000 Verizon Corp., 6.125%
06/15/07............................................... 500,512
-----------
1,993,134
-----------
Total Corporate Bonds 11,426,011
-----------
Total Unaffiliated Issuers 31,436,675
-----------
AFFILIATED MUTUAL FUND (2.06%)
663,719 Vintage Liquid Assets Fund
I Shares 4.592%.......................................... 663,719
-----------
Total Investments in Securities
(99.47%) (Cost $32,236,813) $ 32,100,394
Other Assets and Liabilities (0.53%) 170,047
-----------
NET ASSETS (100.00%) $ 32,270,441
===========
See note to financial statements
15
Performance Report
VINTAGE BOND FUND
Fixed income total returns were healthy during the past twelve months as
interest rates fell slightly and bond prices rose, supplementing the Fund's
income benefits. The ten-year Treasury reached its peak for the past year in
June, 2006 with a yield of 5.25 percent. The peak in interest rates coincided
with the end of the Federal Reserve's rate hike campaign. Interest rates fell
through late fall and into the winter following multiple Federal Reserve
meetings without a change in the Federal Reserve funds rate. Since the Federal
Reserve stopped raising rates, the market has anticipated an interest rate cut
that continues to elude. The ten-year Treasury reached a low of 4.43 percent
during December, 2006, only to move higher in early 2007 on concerns of
persistent inflation. All told, interest rates moved approximately 0.80 percent
during the year from peak to trough, which is a slightly below normal amount of
interest rate volatility. Since September, 2006, intermediate rates have traded
in an even narrower range of 0.50 percent. For the year, the Vintage Bond Fund
outperformed its benchmark before expenses, yet trailed after expenses.
Portfolio performance during the period benefited from an overweight to the
major risk sectors of the bond market, superior security selection and an income
advantage relative to the benchmark. Corporate bonds held an overweight position
and posted the best returns, topping Treasuries by 0.83 percent over the past
year. The overweight to asset-backed securities also added value, beating
Treasuries by 0.44 percent. Many of the portfolio's corporate bond holdings
outperformed the overall corporate bond basis. Security selection was especially
important as avoiding issues involved in takeovers and significant leveraging
events also contributed to relative performance. Overweight allocations are
driven by the opportunity to capture additional income while balancing portfolio
risk. The portfolio continues to maintain an income advantage with managed risk
taking. In total, active investment decisions enhanced performance.
Our fixed income strategy is guided by our central forecast of both the economy
and the markets. Our economic forecast is for moderate growth slightly below
potential for the next several quarters. Job growth will continue to absorb new
entrants resulting in a stable unemployment rate and high levels of capacity
utilization. Core inflation is expected to remain elevated above the desired 1.0
- - 2.0 percent range. Expectations are for the Federal Reserve funds rate to
remain unchanged at 5.25 percent through at least the third quarter, if not all
of 2007. As the Federal Reserve was slow to raise rates throughout this cycle,
we believe their actions to ease will also be prolonged.
The investment strategy is focused on holding less interest rate risk than the
benchmark and continues to hold an overweight in fixed income sectors that
generate an income advantage over the index. Corporate bonds and asset-backed
securities continue to hold overweight positions. Mortgage-backed securities
weightings are near benchmark levels, while the portfolio holds an overweight in
CMO's. U.S. Treasury allocations continue to possess a significant underweight.
An expectation of sustained economic and job growth supports the strategy.
16
Performance Report Bond Fund
Graph Omitted - Information presented
Value of $10,000 Investment
Average Annual Returns
as of 3/31/2007
1 Year 5 Year 10 Year Value
------ ------ ------- -----
Vintage Bond Fund 6.00% 4.14% 5.71% $18,214
Lehman Brothers Aggregate Index 6.59% 5.35% 6.46% $19,666
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE; PAST PERFORMANCE IS NOT
PREDICATIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN THE VINTAGE MUTUAL FUNDS
WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO
CHANGE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED BY
ACCESSING THE WEBSITE AT WWW.VINTAGEFUNDS.COM.
Bond funds will tend to experience smaller fluctuations in value than stock
funds. However, investors in any bond fund should anticipate fluctuations in
price, especially for longer-term issues and in an environment of rising
interest rates.
The performance of the Vintage Bond Fund is compared to the Lehman Brothers
Aggregate Index, which represents the performance of the overall bond market.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management fees. The Fund's performance
reflects the deduction of fees for these value-added services. The performance
table and graph do not reflect the deduction of taxes that a shareholder would
pay on fund distributions or the redemption of fund shares.
17
Vintage Mutual Funds, Inc.
Bond Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
U.S. TREASURY NOTES (2.34%) 170,000 U.S. Treasury Note, 3.625%
05/15/13..............................................$ 161,699
500,000 U.S. Treasury Note, 4.500%
02/15/09.............................................. 498,672
60,000 U.S. Treasury Note, 5.125%
05/15/16.............................................. 62,037
1,000,000 U.S. Treasury Note, 4.875%
02/15/12..............................................1,015,586
-----------
Total U.S. Treasury Notes 1,737,994
-----------
U.S. TREASURY STRIPS (2.96%) 1,320,000 U.S. Treasury Strip, 0.00%
11/15/18................................................755,542
1,425,000 U.S. Treasury Strip, 0.00%
05/15/20................................................749,301
1,720,000 U.S. Treasury Strip, 0.00%
08/15/25................................................691,813
-----------
Total U.S. Treasury Strips 2,196,656
-----------
U.S. GOVERNMENT AGENCIES (7.60%) 730,000 Federal Home Loan Mortgage Corp.
6.750%, 09/15/29..................................... 870,565
2,040,000 Federal National Mortgage Assoc.
4.500%, 06/01/10..................................... 2,017,758
500,000 Federal National Mortgage Assoc.
7.125%, 01/15/30..................................... 620,760
2,000,000 Federal National Mortgage Assoc.
7.125%, 06/15/10..................................... 2,136,426
-----------
Total U.S. Government Agencies 5,645,509
-----------
OTHER GOVERNMENT RELATED (0.38%)
260,000 Utd Mexican States, 6.750%
09/27/34............................................... 283,530
-----------
Total Other Government Related 283,530
-----------
MORTGAGE RELATED SECURITIES (50.77%)
Collateralized Mortgage Obligation (4.95%)
102,721 FHLMC 2123 Class PE, 6.000%
12/15/27............................................... 102,795
1,925,000 FHLMC 3076 Class PC, 5.500%
11/15/25..............................................1,935,464
704,946 St Asset 2001-1 B2, 7.170%
02/25/31................................................702,437
948,482 Wa Mut 2003-AR4 A6, 3.423%
05/25/33................................................932,740
-----------
3,673,436
-----------
Federal Home Loan Mortgage Corp. Pool (14.15%)
844,437 Pool #E01419, 5.500%, 05/01/18......................... 848,264
369,800 Pool #A19963, 5.500%, 03/01/34......................... 366,535
Federal Home Loan Mortgage Corp. Pool (cont.)
57,866 Pool #C00592, 7.000%, 03/01/28........................ 60,206
57,287 Pool #C00896, 7.500%, 12/01/29........................ 60,025
776,019 Pool #C01491, 6.000%, 02/01/33........................ 786,294
108,048 Pool #C19588, 6.500%, 12/01/28........................ 111,450
88,740 Pool #C72044, 6.500%, 10/01/32........................ 91,211
136,239 Pool #C76748, 6.000%, 02/01/33........................ 137,956
793,285 Pool #C78237, 5.500%, 04/01/33........................ 786,819
1,900,267 Pool #E01488, 5.000%, 10/01/18........................1,879,094
1,009,767 Pool #E01545, 5.000%, 01/01/19........................ 998,321
77,735 Pool #E99510, 5.500%, 09/01/18........................ 78,070
722,283 Pool #G01444, 6.500%, 08/01/32........................ 743,668
1,389,600 Pool #G01563, 5.500%, 06/01/33........................1,378,274
813,941 Pool #G01772, 5.000%, 02/01/35........................ 788,117
872,514 Pool #G01896, 5.000%, 09/01/35........................ 844,092
373,437 Pool #M90876, 4.000%, 11/01/08........................ 368,084
44,885 Pool #C53696, 7.000%, 06/01/31........................ 46,627
59,857 Pool #E00436, 7.000%, 06/01/11........................ 61,250
75,514 Pool #G80135, 7.000%, 10/25/24........................ 78,485
-----------
10,512,842
-----------
Federal National Mortgage Association Pool (19.46%)
80,852 ARM #686168, 6.685%, 05/01/32........................ 82,331
810,357 Pool #735415, 6.500%, 12/01/32....................... 834,693
196,044 Pool #240650, 7.500%, 07/01/21....................... 204,332
52,795 Pool #250990, 7.500%, 07/01/27....................... 55,377
72,863 Pool #251614, 7.000%, 04/01/28....................... 75,940
97,387 Pool #251697, 6.500%, 05/01/28....................... 100,481
158,892 Pool #252334, 6.500%, 02/01/29....................... 163,632
72,568 Pool #252518, 7.000%, 05/01/29....................... 76,019
958,174 Pool #254759, 4.500%, 06/01/18....................... 930,167
947,403 Pool #254802, 4.500%, 07/01/18....................... 919,710
453,016 Pool #254905, 6.000%, 10/01/33....................... 458,426
166,595 Pool #254982, 5.000%, 12/01/33....................... 161,381
947,302 Pool #255075, 5.500%, 02/01/24....................... 944,651
217,648 Pool #255079, 5.000%, 02/01/19....................... 215,216
163,382 Pool #323282, 7.500%, 07/01/28....................... 171,373
72,667 Pool #323640, 7.500%, 04/01/29....................... 76,231
71,922 Pool #346287, 7.000%, 05/01/26....................... 74,908
1,475,304 Pool #357467, 5.500%, 12/01/33....................... 1,463,215
59,817 Pool #535817, 7.000%, 04/01/31....................... 62,487
388,241 Pool #545759, 6.500%, 07/01/32....................... 399,159
1,006,375 Pool #545993, 6.000%, 11/01/32....................... 1,019,031
937,078 Pool #555272, 6.000%, 03/01/33....................... 948,863
55,594 Pool #581592, 7.000%, 06/01/31....................... 57,938
1,831,717 Pool #683387, 5.500%, 02/01/33....................... 1,816,708
220,658 Pool #713974, 5.500%, 07/01/33....................... 218,850
954,561 Pool #721502, 5.000%, 07/01/33....................... 924,684
1,113,410 Pool #737730, 5.500%, 09/01/33....................... 1,104,286
923,893 Pool #742088, 4.500%, 04/01/19....................... 895,648
-----------
14,455,737
-----------
See note to financial statements
18
Vintage Mutual Funds, Inc.
Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
MORTGAGE RELATED SECURITIES (CONT.)
Government National Mortgage Association Pool (2.92%)
128,044 Pool #2536, 7.500%, 01/20/28......................... $ 133,258
1,237,810 Pool #3584, 6.000%, 07/20/34......................... 1,254,227
47,183 Pool #451522, 7.500%, 10/15/27....................... 49,304
103,708 Pool #462556, 6.500%, 02/15/28....................... 106,801
14,996 Pool #466138, 7.500%, 12/15/28....................... 15,666
55,728 Pool #469699, 7.000%, 11/15/28....................... 58,297
79,316 Pool #486760, 6.500%, 12/15/28....................... 81,683
60,437 Pool #780453, 7.500%, 12/15/25....................... 63,155
90,223 Pool #780584, 7.000%, 06/15/27....................... 94,419
107,131 Pool #780717, 7.000%, 02/15/28....................... 112,115
64,150 Pool #780936, 7.500%, 12/15/28....................... 67,036
126,924 Pool #780990, 7.500%, 12/15/28....................... 132,619
-----------
2,168,580
-----------
Asset Backed Securities (9.29%)
443,000 Amresco 1997-2 M1F, 7.430%
06/25/27............................................. 441,345
1,100,000 Chase Mtg 2003-4 1A5, 5.416%
05/25/33............................................. 1,097,573
613,245 Chase Mtg 2003-6 1A3, 3.340%
05/25/26............................................. 605,775
852,568 CIT Group 2002-1 AF5, 6.710%
02/25/33............................................. 862,602
27,734 ContiMtg 1999-1 A7, 6.470%
12/25/13............................................. 27,670
506,321 CountryWide ABS, 4.575%
07/25/35............................................. 502,907
343,033 Equity One, 6.039%
11/25/32............................................. 342,049
36,254 FHLMC Ps Thru T-5 A6, 7.120%
06/25/28............................................. 36,345
621,340 GreenTree 1996-3 A6, 7.850%
05/15/27............................................. 651,570
335,819 Indymac 1998-2 A2, 6.170%
12/25/11............................................. 328,061
1,100,000 POPLR 2005-B AF3, 4.620%
08/25/35............................................. 1,087,093
788,152 RAMP 2004-RS12 AI3, 3.981%
04/25/29............................................. 782,480
139,399 S Pacific 1998-1 A6, 7.080%
03/25/28............................................. 138,864
-----------
6,904,334
-----------
Total Mortgage Related Securities 37,714,929
-----------
MUNICIPAL BONDS (1.54%)
General Obligation County / City / School
District Bonds (1.25%)
125,000 Fulton, MO Sink 7/08, 7.600%
07/01/11............................................... 127,020
815,000 Oregon State G.O., 3.742%
06/01/08................................................802,319
-----------
929,339
-----------
Revenue Bond - Education (0.29%)
220,000 PA Higher Ed Hsg, 4.700%
07/01/09......................................... 216,471
-----------
Total Municipal Bonds 1,145,810
-----------
CORPORATE BONDS (32.06%)
Banking & Financial (2.08%)
650,000 Bank of America Corp., 7.400%
01/15/11............................................... 700,364
435,000 Wachovia Corp., 5.625%
10/15/16................................................436,887
435,000 Wells Fargo Company, 5.375%
02/07/35............................................... 409,166
-----------
1,546,417
-----------
Beverages (0.71%)
535,000 Anheuser-Busch Company, 5.950%
01/15/33................................................529,378
-----------
Broker - Dealer (1.88%)
490,000 JP Morgan Chase & Company, 3.500%
03/15/09................................................475,012
240,000 JP Morgan Chase & Company, 4.500%
01/15/12................................................233,368
705,000 Morgan Stanley, 3.875%
01/15/09................................................690,711
-----------
1,399,091
-----------
Building Products (0.73%)
520,000 Lafarge SA, 6.500%
07/15/16............................................... 543,883
-----------
Conglomerates (1.48%)
680,000 GE Capital Corp. MTN, 6.125%
02/22/11............................................... 704,721
350,000 GE Capital Corp. MTN, 6.750%
03/15/32................................................396,561
-----------
1,101,282
-----------
Consumer Goods & Serv (0.63%)
490,000 Fortune Brands Inc., 5.375%
01/15/16................................................470,898
-----------
Aerospace - Defense (0.62%)
445,000 Lockheed Martin Corp., 6.150%
09/01/36................................................461,687
-----------
Electrical (0.59%)
435,000 PG&E, 6.050%
03/01/34................................................436,064
-----------
See note to financial statements
19
Vintage Mutual Funds, Inc.
Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
CORPORATE BONDS (CONT.)
Electric Utility (1.21%)
490,000 Appalachian Power Company, 5.000%
06/01/17............................................ $ 463,786
435,000 Virginia Electric, 5.400%
01/15/16................................................430,473
-----------
894,259
-----------
Financial Services (3.76%)
505,000 CIT Group Inc, 4.750%
12/15/10............................................... 497,221
650,000 Citigroup Inc, 5.125%
05/05/14............................................... 643,019
450,000 Countrywide Loan, 4.000%
03/22/11............................................... 426,575
800,000 Household Finance, 4.750%
07/15/13............................................... 772,768
455,000 Lehman Bros Holdings, 5.500%
04/04/16............................................... 452,432
-----------
2,792,015
-----------
Food Products (1.11%)
810,000 Fred Meyer, 7.450%
03/01/08............................................... 825,415
-----------
Home Building & Services (0.91%)
715,000 DR Horton Inc, 5.625%
09/15/14................................................679,579
-----------
Insurance (1.20%)
450,000 Allstate Corp., 5.000%
08/15/14................................................439,823
440,000 Genworth Financial, 5.750%
06/15/14................................................448,837
-----------
888,660
-----------
Machinery & Equipment (0.59%)
450,000 Johnson Controls Inc, 4.875%
09/15/13............................................... 435,654
-----------
Manufactured Consumer Goods (0.58%)
440,000 Eaton Corp., 5.300%
03/15/17................................................433,313
-----------
Medical Hospital Management (0.65%)
490,000 Wellpoint Inc., 5.250%
01/15/16................................................481,182
-----------
Media (1.63%)
120,000 AOL Time Warner, 7.625%
04/15/31............................................ 134,859
255,000 AOL Time Warner, 6.875%
05/01/12............................................ 271,733
800,000 Comcast Cble Comm., 5.875%
02/15/18................................................802,162
-----------
1,208,754
-----------
Mining (0.65%)
490,000 BHP Finance USA, 5.250%
12/15/15............................................. 484,679
-----------
Oil & Gas (1.97%)
380,000 Conoco Inc, 6.950%
04/15/29............................................... 430,870
600,000 Enterprise Prod Oper, 5.000%
03/01/15............................................... 572,572
435,000 Valero Energy, 6.875%
4/15/12................................................463,230
-----------
1,466,672
-----------
Pharmaceuticals (0.60%)
450,000 Cardinal Health Inc, 5.850%
12/15/17................................................449,247
-----------
Pipelines (0.40%)
280,000 Kinder Morgan Energy, 6.750%
03/15/11................................................294,186
-----------
Railroads (0.40%)
280,000 Union Pacific Corp., 6.625%
02/01/29............................................... 296,015
-----------
REIT (2.11%)
450,000 Avalon Bay Apts, 5.500%
01/15/12................................................454,037
430,000 Realty Income Corp., 5.500%
11/15/15............................................... 427,354
630,000 Simon Prop Grp REIT, 7.750%
01/20/11................................................684,464
-----------
1,565,855
-----------
Retail General Merchandise (0.57%)
425,000 May Dept. Store, 5.750%
07/15/14................................................421,606
-----------
Telecommunications (3.85%)
605,000 America Movil SA, 5.500%
03/01/14.............................................. 598,474
365,000 AT&T Inc., 5.875%
08/15/12.............................................. 374,849
310,000 AT&T Wireless, 7.875%
03/01/11.............................................. 339,207
295,000 Sprint Corp., 8.375%
03/15/12.............................................. 329,140
445,000 Telus Corp., 8.000%
06/01/11.............................................. 487,375
765,000 Verizon Corp., 4.900%
09/15/15.............................................. 733,310
-----------
2,862,355
-----------
See note to financial statements
20
Vintage Mutual Funds, Inc.
Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
CORPORATE BONDS (CONT.)
Utilities (0.58%)
425,000 Cincinnati Gas & Elec, 5.700%
09/15/12............................................ $ 432,355
-----------
Waste Disposal (0.57%)
435,000 Waste Management Inc, 5.000%
03/15/14................................................418,981
-----------
Total Corporate Bonds 23,819,482
-----------
PREFERRED STOCK (0.35%)
Real Estate Investment Trust
10,000 Realty Income Sr PFD, 8.25%
11/15/08................................................261,200
-----------
Total Unaffiliated Issuers 72,805,110
-----------
AFFILIATED MUTUAL FUND (1.64%)
1,217,814 Vintage Liquid Assets Fund
I Shares 4.592%..................................... 1,217,814
-----------
Total Investments in Securities
(99.64%) (Cost $74,477,463) $ 74,022,924
Other Assets and Liabilities (0.36%) 263,755
-----------
NET ASSETS (100.00%) $ 74,286,679
===========
See note to financial statements
21
Performance Report
VINTAGE MUNICIPAL BOND FUND
Economic growth continued to advance at a pace modestly below potential, and
inflation remains the Federal Reserve's biggest concern. Municipal bond returns
suffered from record supply levels and weak seasonal effects, although 10-year
municipal yields were unchanged on the quarter. Performance of the Fund
benefited from a short duration position as rates rose. 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 made significant changes over the past year, increasing income and
improving relative performance over the last quarter. Increasing callable bond
exposure as well as the addition of some higher yielding exposures through
nonrated bonds and higher yield sectors pushed overall portfolio yield higher
and resulted in improving performance relative to peers. The Fund's twelve month
Morningstar ranking improved to 62nd percentile and ended the most recent
calendar quarter in the 17th percentile. 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.
22
Performance Report Municipal Bond Fund
Graph Omitted - Information presented
Value of $10,000 Investment
Average Annual Returns
as of 3/31/2007
1 Year 5 Year 10 Year Value
------ ------ ------- -----
Vintage Municipal Bond Fund 3.08% 3.59% 4.13% $15,084
Merrill Lynch 1-12 Yr. Municipal Bond Index 4.67% 4.84% 5.36% $16,718
Merrill Lynch 2-17 Yr. Municipal Bond Index 5.04% 5.31% 5.80% $17,572
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE; PAST PERFORMANCE IS NOT
PREDICATIVE OF FUTURE RESULTS. THE VALUE OF SHARES IN THE VINTAGE MUTUAL FUNDS
WILL FLUCTUATE SO THAT THE SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN
THEIR ORIGINAL COST. THE COMPOSITION OF THE FUND'S HOLDINGS IS SUBJECT TO
CHANGE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END MAY BE OBTAINED BY
ACCESSING THE WEBSITE AT WWW.VINTAGEFUNDS.COM.
Bond funds will tend to experience smaller fluctuations in value than stock
funds. However, investors in any bond fund should anticipate fluctuations in
price, especially for longer-term issues and in an environment of rising
interest rates.
The performance of the Vintage Municipal Bond Fund is measured against the
Merrill Lynch 2-17 Year Municipal Bond Index, an unmanaged index generally
representative of the performance of municipal bonds with maturities of 2-17
years. During this period, the benchmark changed from the Merrill Lynch 1-12
Year Index to the Merrill Lynch 2-17 Year Index because the longer maturity
profile is expected to result in higher income. The index does not reflect the
deduction of fees associated with a mutual fund, such as investment management
fees. The Fund's performance reflects the deduction of fees for these
value-added services. The performance table and graph do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares.
23
Vintage Mutual Funds, Inc.
Municipal Bond Fund
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
MUNICIPAL BONDS (86.82%)
Alabama (2.91%)
200,000 Decatur, AL G.O.
4.250%, 10/01/22...................................... $ 199,324
290,000 Montgomery, AL G.O
5.000%, 01/01/23...................................... 306,611
-----------
505,935
-----------
California (6.05%)
290,000 California State
5.000%, 12/01/17...................................... 307,925
500,000 California State Revenue
5.250%, 07/01/13...................................... 543,170
200,000 San Diego, CA School District
4.500%, 07/01/24...................................... 203,170
-----------
1,054,265
-----------
Colorado (2.64%)
150,000 Denver Department Parks, CO
4.000%, 09/01/07...................................... 149,893
290,000 Evergreen, CO G.O.
5.000%, 12/01/19...................................... 310,200
-----------
460,093
-----------
Florida (6.01%)
200,000 Bay County, FL
5.000%, 09/01/18...................................... 215,208
300,000 Collier County Rev, FL
5.000%, 06/01/21...................................... 318,354
475,000 FL State Board of Education
5.000%, 06/01/15...................................... 513,831
-----------
1,047,393
-----------
Iowa (0.91%)
160,000 Iowa Higher Education
4.200%, 10/01/15...................................... 159,208
-----------
Illinois (12.99%)
300,000 De Kalb County, IL G.O.
5.000%, 12/01/20...................................... 320,418
240,000 DuPage County, IL
5.000%, 11/01/16...................................... 256,490
300,000 Illinois State G.O.
5.250%, 10/01/19...................................... 320,955
300,000 Kendall County, IL G.O.
5.250%, 01/01/23...................................... 325,830
435,000 Will County, IL School District
6.500%, 11/01/10...................................... 476,147
320,000 Will County, IL School District
6.500%, 11/01/17...................................... 349,597
200,000 Evansville, IN
5.000%, 12/01/23...................................... 213,632
-----------
2,263,069
-----------
Indiana (2.80%)
450,000 Allen County, IN
5.750%, 10/01/11...................................... 488,092
-----------
488,092
-----------
Massachusetts (4.11%)
200,000 MA State Water Pollution
5.000%, 08/01/17..................................... 217,524
465,000 MA State Special Revenue
5.000%, 06/01/14..................................... 499,103
-----------
716,627
-----------
Maryland (1.72%)
300,000 MD Economic Development
0.000%, 07/01/34...................................... 300,000
-----------
New York (4.17%)
440,000 New York, NY
5.000%, 08/01/12...................................... 464,609
245,000 New York, NY Service G
5.000%, 12/01/17...................................... 261,533
-----------
726,142
-----------
Ohio (2.45%)
100,000 Ohio Higher Education
5.000%, 10/01/11...................................... 104,418
300,000 Ohio State University
5.250%, 06/01/19...................................... 323,025
-----------
427,443
-----------
Pennsylvania (3.81%)
350,000 Erie Co., PA Hospital
0.000%, 05/15/20...................................... 350,000
290,000 Neshaminy, PA G.O
5.000% Due 05/01/18.................................... 312,980
-----------
662,980
-----------
South Carolina (1.15%)
200,000 Beaufort County, SC
4.250%, 03/01/22...................................... 199,994
-----------
Tennessee (9.30%)
1,000,000 Johnson City, TN Revenue
5.500%, 07/01/12...................................... 1,082,180
500,000 Memphis,TN
5.000%, 11/01/14...................................... 537,945
-----------
1,620,125
-----------
Texas (10.89%)
290,000 Hays, TX G.O.
0.000%, 08/15/14...................................... 208,533
290,000 Plano, TX G.O
4.750%, 09/01/19...................................... 304,242
See note to financial statements
24
Vintage Mutual Funds, Inc.
Municipal Bond Fund (continued)
Schedule of Portfolio Investments
March 31, 2007
Par/
Share Value Description Value
- ----------- ----------- -----
MUNICIPAL BONDS (CONT.)
Texas (cont.)
490,000 Texas State
5.250%, 10/15/12...................................... 526,970
235,000 Texas State Housing Revenue
4.300%, 09/01/16...................................... 239,056
280,000 Denton, TX Utility System
5.000%, 12/01/13...................................... 293,160
300,000 Harris County, TX G.O
5.250%, 10/01/20...................................... 323,601
-----------
1,895,562
-----------
Washington (11.78%)
125,000 Clark County, WA School
5.250%, 12/01/14...................................... 129,489
465,000 Grays Harbor County Utility
5.500%, 01/01/14...................................... 494,383
500,000 King County, WA
5.000%, 01/01/11...................................... 523,445
200,000 King County, WA
4.000%, 12/01/12...................................... 202,136
200,000 Seattle, WA G.O
5.000%, 08/01/23...................................... 212,446
465,000 WA State Service R03A
5.000%, 01/01/15...................................... 489,441
-----------
2,051,340
-----------
Wisconsin (3.11%)
200,000 Kronewetter, WI
4.750%, 03/01/11...................................... 201,892
200,000 Monona, WI Sewer Revenue
4.500%, 05/01/11...................................... 201,964
135,000 Wisconsin State
5.000%, 04/01/09...................................... 138,226
-----------
542,082
-----------
Total Municipal Bond 15,120,350
-----------
ALTERNATIVE MINIMUM TAX PAPER (11.65%)
Iowa (5.85%)
1,000,000 Iowa Student Loan Corp.
5.100%, 06/01/09..................................... 1,018,090
Utah (5.81%)
1,000,000 Utah State Revenue
5.200%, 05/01/08..................................... 1,012,150
-----------
Total Alternative Minimum Tax Paper 2,030,240
-----------
Total Unaffiliated Issuers 17,150,590
-----------
AFFILIATED MUTUAL FUND (0.42%)
Vintage Municipal Assets Fund
72,622 I Shares 2.689%.......................................... 72,622
-----------
Total Investments in Securities
(98.89%) (Cost $17,121,365) $ 17,223,212
Other Assets and Liabilities (1.11%) 193,329
-----------
NET ASSETS (100.00%) $ 17,416,541
===========
See note to financial statements
25
Vintage Mutual Funds, Inc.
Statements of Assets and Liabilities
March 31, 2007
INSTITUTIONAL INSTITUTIONAL LIQUID MUNICIPAL
MONEY MARKET RESERVES ASSETS ASSETS
ASSETS:
Investments, at value:
Unaffiliated issuers $ 18,864,533 $ 24,457,605 $ 82,206,535 $ 14,044,450
Affiliated funds ----- ----- ----- -----
Repurchase agreements 88,035,254 41,917,041 45,492,720 -----
-------------- --------------- -------------- --------------
Total investments 106,899,787 66,374,646 127,699,255 14,044,450
Interest and dividends receivable 145,636 162,761 763,401 78,618
Receivable for capital shares issued ----- ----- 3,403 -----
Dividend reinvestment receivable 397,713 ----- 59,121 981
Prepaid expenses 7,120 13,072 15,405 1,772
-------------- --------------- -------------- --------------
Total assets 107,450,256 66,550,479 128,540,585 14,125,821
-------------- --------------- -------------- --------------
LIABILITIES:
Dividends payable 397,714 266,333 488,931 32,501
Payable for investments purchased ----- ----- 2,318,918 300,625
Payable for capital shares redeemed ----- ----- 2,454 -----
Accrued expenses and other payables:
Investment advisory fees 6,300 8,135 39,046 4,405
Administration fees 5,512 2,712 23,428 2,643
Accounting fees ----- ----- 3,347 378
Distribution fees ----- ----- 24,769 250
Servicing fees ----- ----- 34,408 1,519
Other 22,561 9,910 46,621 11,309
-------------- --------------- -------------- --------------
Total liabilities 432,087 287,090 2,981,922 353,630
-------------- --------------- -------------- --------------
Net assets $ 107,018,169 $ 66,263,389 $ 125,558,663 $ 13,772,191
============== =============== ============== ==============
Investments, at cost:
Unaffiliated issuers $ 18,864,533 $ 24,457,605 $ 82,206,535 $ 14,044,450
Affiliated funds ----- ----- ----- -----
Repurchase agreements 88,035,254 41,917,041 45,492,720 -----
-------------- --------------- -------------- --------------
$ 106,899,787 $ 66,374,646 $ 127,699,255 $ 14,044,450
============== =============== ============== ==============
See note to financial statements
26
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2007
LIMITED MUNICIPAL
TERM BOND BOND BOND
ASSETS:
Investments, at value:
Unaffiliated issuers $ 31,436,675 $ 72,805,110 $ 17,150,590
Affiliated funds 663,719 1,217,814 72,622
Repurchase agreements ----- ----- -----
-------------- --------------- ---------------
Total investments 32,100,394 74,022,924 17,223,212
Interest and dividends receivable 294,283 540,795 261,883
Receivable for capital shares issued ----- 592 -----
Dividend reinvestment receivable 31,015 56,709 5,014
Prepaid expenses 4,262 9,253 2,398
-------------- --------------- ---------------
Total assets 32,429,954 74,630,273 17,492,507
-------------- --------------- ---------------
LIABILITIES:
Dividends payable 120,999 267,576 49,528
Payable for investments purchased ----- ----- -----
Payable for capital shares redeemed 2,559 3,786 -----
Accrued expenses and other payables:
Investment advisory fees 14,123 35,465 7,709
Administration fees 3,954 10,974 3,397
Accounting fees 847 1,935 463
Distribution fees ----- ----- -----
Servicing fees ----- ----- -----
Other 17,031 23,858 14,869
-------------- --------------- ---------------
Total liabilities 159,513 343,594 75,966
-------------- --------------- ---------------
Net assets $ 32,270,441 $ 74,286,679 $ 17,416,541
============== =============== ===============
Investments, at cost:
Unaffiliated issuers $ 31,573,094 $ 73,259,649 $ 17,048,743
Affiliated funds 663,719 1,217,814 72,622
Repurchase agreements ----- ----- -----
-------------- --------------- ---------------
$ 32,236,813 $ 74,477,463 $ 17,121,365
============== =============== ===============
See note to financial statements
27
Vintage Mutual Funds, Inc.
Statements of Assets and Liabilities
March 31, 2007
INSTITUTIONAL I NSTITUTIONAL LIQUID MUNICIPAL
MONEY MARKET RESERVES ASSETS ASSETS
NET ASSETS:
Paid-in capital $ 107,018,169 $ 66,263,389 $ 125,558,663 $ 13,772,191
Accumulated undistributed net investment income ----- ----- ----- -----
Net unrealized gains (losses) on
investment transactions ----- ----- ----- -----
Accumulated undistributed net realized
gains (losses)
on investment transactions ----- ----- ----- -----
-------------- --------------- -------------- --------------
Net assets $ 107,018,169 $ 66,263,389 $ 125,558,663 $ 13,772,191
============== =============== ============== ==============
Authorized shares 1,250,000,000 1,250,000,000
============== ===============
Capital shares outstanding 107,018,169 66,263,389
============== ===============
Net asset value--offering and redemption
price per share $ 1.00 $ 1.00
============== ===============
PRICING OF S SHARES
Net assets applicable to S Shares outstanding $ 10,137,789 $ 572,688
============== ==============
Authorized shares 1,250,000,000 1,250,000,000
============== ==============
Shares outstanding, $.001 par value 10,137,789 572,688
============== ==============
Net asset value--offering and redemption price per share $ 1.00 $ 1.00
============== ==============
PRICING OF S2 SHARES
Net assets applicable to S2 Shares outstanding $ 36,027,967
==============
Authorized shares 1,250,000,000
==============
Shares outstanding, $.001 par value 36,027,967
==============
Net asset value--offering and redemption price per share $ 1.00
==============
PRICING OF T SHARES
Net assets applicable to T Shares outstanding $ 15,211,862 $ 3,444,144
============== ==============
Authorized shares 1,250,000,000 1,250,000,000
============== ==============
Shares outstanding, $.001 par value 15,211,862 3,444,144
============== ==============
Net asset value--offering and redemption price per share $ 1.00 $ 1.00
============== ==============
PRICING OF I SHARES
Net assets applicable to I Shares outstanding $ 64,181,045 $ 9,755,359
============== ==============
Authorized shares 1,250,000,000 1,250,000,000
============== ==============
Shares outstanding, $.001 par value 64,181,045 9,755,359
============== ==============
Net asset value--offering and redemption price per share $ 1.00 $ 1.00
============== ==============
See note to financial statements
28
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2007
LIMITED MUNICIPAL
TERM BOND BOND BOND
NET ASSETS:
Paid-in capital $ 35,741,644 $ 77,814,867 $ 17,284,865
Accumulated undistributed net investment income 24,577 25 10
Net unrealized gains (losses) on
investment transactions (136,419) (454,539) 101,847
Accumulated undistributed net realized
gains (losses)
on investment transactions (3,359,361) (3,073,674) 29,819
-------------- --------------- ---------------
Net assets $ 32,270,441 $ 74,286,679 $ 17,416,541
============== =============== ===============
Authorized shares 800,000,000 809,987,393 800,000,000
============== =============== ===============
Capital shares outstanding 3,403,748 7,657,113 1,728,635
============== =============== ===============
Net asset value--offering and redemption
price per share $ 9.48 $ 9.70 $ 10.08
============== =============== ===============
See note to financial statements
29
Vintage Mutual Funds, Inc.
Statements of Operations
For the Year Ended March 31, 2007
Institutional Institutional Liquid Municipal
Money Market Reserves Assets Assets
INVESTMENT INCOME:
Interest income $ 4,126,447 $ 3,465,108 $ 6,797,832 $ 549,510
Affiliated interest income ----- ----- ----- -----
Dividend income ----- ----- ----- -----
------------ ------------ ------------ ------------
Total income 4,126,447 3,465,108 6,797,832 549,510
------------ ------------ ------------ ------------
EXPENSES: (NOTE 4)
Investment advisory fees 276,737 232,531 451,284 54,281
Administration fees 166,042 139,519 270,770 32,569
Distribution and shareholder service fees S Shares ----- ----- 94,146 5,436
Distribution and shareholder service fees S2 Shares ----- ----- 186,201 -----
Distribution and shareholder service fees T Shares ----- ----- 58,348 8,019
Shareholder service fees ----- ----- ----- -----
Custody fees 43,200 26,616 56,108 7,464
Accounting fees 23,720 19,931 38,681 4,653
Legal fees 6,599 4,223 8,232 938
Audit fees 14,747 9,065 20,648 15,934
Directors' fees 24,146 14,511 30,494 4,123
Transfer agent fees 6,000 5,773 103,534 23,277
Registration and filing fees 2,348 ----- 7,574 1,819
Printing fees 3,487 2,267 4,345 574
Insurance expense 22,290 19,071 32,281 3,879
Other 1,785 1,993 4,062 2,274
------------ ------------ ------------ ------------
Total expenses 591,101 475,500 1,366,708 165,240
Less: Expenses voluntarily reduced/waived (427,273) (259,106) (73,132) (10,295)
------------ ------------ ------------ ------------
Net expenses 163,828 216,394 1,293,576 154,945
------------ ------------ ------------ ------------
Net investment income 3,962,619 3,248,714 5,504,256 394,565
------------ ------------ ------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions ----- ----- ----- -----
Net change in unrealized appreciation
from investments ----- ----- ----- -----
------------ ------------ ------------ ------------
Net realized and unrealized gains from investments ----- ----- ----- -----
------------ ------------ ------------ ------------
Change in net assets resulting from operations $ 3,962,619 $ 3,248,714 $ 5,504,256 $ 394,565
============ ============ ============ ============
See note to financial statements
30
VINTAGE MUTUAL FUNDS, INC.
Statements of Operations
For the Year Ended March 31, 2007
Limited Municipal
Term Bond Bond Bond
INVESTMENT INCOME:
Interest income $ 1,655,799 $ 4,100,953 $ 874,873
Affiliated interest income 20,032 35,622 3,481
Dividend income ----- 20,625 -----
------------ ------------ ------------
Total income 1,675,831 4,157,200 878,354
------------ ------------ ------------
EXPENSES: (NOTE 4)
Investment advisory fees 186,132 446,928 106,125
Administration fees 96,788 211,173 55,158
Distribution and shareholder service fees S Shares ----- ----- -----
Distribution and shareholder service fees S2 Shares ----- ----- -----
Distribution and shareholder service fees T Shares ----- ----- -----
Shareholder service fees 93,066 203,149 53,062
Custody fees 7,052 14,915 5,116
Accounting fees 11,168 24,378 6,368
Legal fees 2,567 5,404 1,573
Audit fees 11,650 18,602 16,160
Directors' fees 9,893 20,852 6,231
Transfer agent fees 42,740 73,937 14,573
Registration and filing fees 1,572 3,931 1,046
Printing fees 1,361 2,792 786
Insurance expense 8,922 19,135 5,324
Other 13,448 27,902 11,061
------------ ------------ ------------
Total expenses 486,359 1,073,098 282,583
Less: Expenses voluntarily reduced/waived (197,882) (440,235) (121,977)
-------------------------- ------------
Net expenses 288,477 632,863 160,606
------------ ------------ ------------
Net investment income 1,387,354 3,524,337 717,748
------------ ------------ ------------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from
investment transactions (154,843) (532,413) 116,912
Net change in unrealized appreciation
from investments 548,861 1,645,505 24,611
------------ ------------ ------------
Net realized and unrealized gains from investments 394,018 1,113,092 141,523
------------ ------------ ------------
Change in net assets resulting from operations $ 1,781,372 $ 4,637,429 $ 859,271
============ ============ ============
See note to financial statements
31
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
INSTITUTIONAL MONEY MARKET INSTITUTIONAL RESERVES LIQUID ASSETS MUNICIPAL ASSETS
-------------------------- --------------------------- ---------------------------- ---------------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006 2007 2006
------------ ------------- ------------- ------------- ------------- -------------- -------------- ------------
OPERATIONS:
Net investment
income $ 3,962,619 $ 1,073,750 $ 3,248,714 $ 1,972,686 $ 5,504,256 $ 3,218,107 $ 394,565 $ 398,915
Net realized gains
(losses)from
investment
transactions ------ ------ ------ ------ ------ ------ ------ ------
Net change
in unrealized
appreciation
(depreciation)
from investments ------ ------ ------ ------ ------ ------ ------ ------
Change in net assets
------------ ------------- ------------- ------------- ------------- -------------- -------------- ------------
resulting from
operations 3,962,619 1,073,750 3,248,714 1,972,686 5,504,256 3,218,107 394,565 398,915
------------ ------------- ------------- ------------- ------------- -------------- -------------- ------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net
investment income:
Capital Shares (3,962,619) (1,073,750) (3,248,714) (1,972,686) ------ ------ ------ ------
S Shares ------ ------ ------ ------ (479,620) (355,197) (23,750) (44,087)
S2 Shares ------ ------ ------ ------ (1,496,382) (1,375,224) ------ ------
T Shares ------ ------ ------ ------ (995,920) (872,120) (78,726) (61,414)
I Shares ------ ------ ------ ------ (2,521,058) (615,566) (292,089) (293,414)
From net
realized gains:
Capital Shares ------ ------ ------ ------ ------ ------ ------ ------
S Shares ------ ------ ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------ ------ ------
Return of capital ------ ------ ------ ------ ------ ------ ------ ------
Change in net
assets from
------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------
shareholder
distributions $ (3,962,619) $ (1,073,750) $ (3,248,714) $ (1,972,686) $ (5,492,980) $ (3,218,107) $ (394,565) $ (398,915)
------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------
See note to financial statements
32
STATEMENTS OF CHANGES IN NET ASSETS
INSTITUTIONAL MONEY MARKET INSTITUTIONAL RESERVES LIQUID ASSETS MUNICIPAL ASSETS
-------------------------- --------------------------- ---------------------------- ---------------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006 2007 2006
------------ ------------- ------------- ------------- ------------- -------------- -------------- ------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares $547,347,648 172,452,017 214,540,104 197,521,583 $ ------ $ ------ $ ------ $ ------
S Shares ------ ------ ------ ------ 51,055,530 69,214,128 5,460,047 9,603,471
S2 Shares ------ ------ ------ ------ 223,292,230 295,821,875 ------ ------
T Shares ------ ------ ------ ------ 128,167,772 275,516,554 9,435,926 8,039,451
I Shares ------ ------ ------ ------ 187,776,432 59,546,020 43,742,062 43,700,653
REINVESTMENTS:
Capital Shares 3,962,619 1,084,739 ------ ------ ------ ------ ------ ------
S Shares ------ ------ ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ 389,074 137,553 13,040 11,852
I Shares ------ ------ ------ ------ 175,629 13,003 ------ ------
REDEMPTIONS:
Capital Shares (507,778,457) (120,162,877) (194,431,681) (195,039,629) ------ ------ ------ ------
S Shares ------ ------ ------ ------ (52,505,099) (71,003,387) (6,989,414) (10,443,172)
S2 Shares ------ ------ ------ ------ (247,778,103) (283,549,395) ------ ------
T Shares ------ ------ ------ ------ (140,884,113) (261,578,141) (9,280,565) (8,736,851)
I Shares ------ ------ ------ ------ (156,389,793) (37,299,624) (46,912,862) (50,593,904)
Change in net
assets from
------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------
capital
transactions 43,531,810 53,373,879 20,108,423 2,481,954 (6,700,441) 46,818,586 (4,531,766) (8,418,500)
------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------
Change in
net assets 43,531,810 53,373,879 20,108,423 2,481,954 (6,689,165) 46,818,586 (4,531,766) (8,418,500)
NET ASSETS:
Beginning
of year 63,486,359 10,112,480 46,154,966 43,673,012 132,247,828 85,429,242 18,303,957 26,722,457
-------------- ------------- ------------- ------------- ------------- -------------- -------------- ------------
End of year $ 107,018,169 $ 63,486,359 $ 66,263,389 $ 46,154,966 $125,558,663 $ 132,247,828 $ 13,772,191 18,303,957
============== ============= ============= ============= ============= ============== ============== ============
See note to financial statements
33
STATEMENTS OF CHANGES IN NET ASSETS
INSTITUTIONAL MONEY MARKET INSTITUTIONAL RESERVES LIQUID ASSETS MUNICIPAL ASSETS
-------------------------- --------------------------- ---------------------------- ---------------------------
Year Year Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006 2007 2006
------------ ------------- ------------- ------------- ------------- -------------- -------------- ------------
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 547,347,648 172,452,017 214,540,104 197,521,583 ------ ------ ------ ------
S Shares ------ ------ ------ ------ 51,055,530 69,214,128 5,460,047 9,603,471
S2 Shares ------ ------ ------ ------ 223,292,230 295,821,875 ------ ------
T Shares ------ ------ ------ ------ 128,167,772 275,516,554 9,435,926 8,039,451
I Shares ------ ------ ------ ------ 187,776,432 59,546,020 43,742,062 43,700,653
REINVESTMENTS:
Capital Shares 3,962,619 1,084,739 ------ ------ ------ ------ ------ ------
S Shares ------ ------ ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------ ----- -----
T Shares ------ ------ ------ ------ 389,074 137,553 13,040 11,852
I Shares ------ ------ ------ ------ 175,629 13,003 ------ ------
REDEMPTIONS:
Capital Shares (507,778,457) (120,162,877) (194,431,681) (195,039,629) ------ ------ ------ ------
S Shares ------ ------ ------ ------ (52,505,099) (71,003,387) (6,989,414) (10,443,172)
S2 Shares ------ ------ ------ ------ (247,778,103) (283,549,395) ------ ------
T Shares ------ ------ ------ ------ (140,884,113) (261,578,141) (9,280,565) (8,736,851)
I Shares ------ ------ ------ ------ (156,389,793) (37,299,624) (46,912,862) (50,593,904)
-------------- ------------- ------------- ------------- ------------- -------------- ---------------------------
Change in shares 43,531,810 53,373,879 20,108,423 2,481,954 (6,700,441) 46,818,586 (4,531,766) (8,418,500)
============== ============= ============= ============= ============= ============== ===========================
See note to financial statements
34
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
LIMITED TERM BOND BOND MUNICIPAL BOND
---------------------------- ------------------------------ -----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006
------------- -------------- ------------- ------------- -------------- -------------
OPERATIONS:
Net investment income $ 1,387,354 $ 1,584,033 $ 3,524,337 $ 4,137,405 $ 717,748 $ 1,051,630
Net realized gains (losses)
from investment transactions (154,843) (808,802) (532,413) (276,031) 116,912 345,195
Net change in unrealized
appreciation (depreciation)
from investments 548,861 424,621 1,645,505 (1,933,025) 24,611 (867,305)
Change in net assets
------------- -------------- ------------- ------------- -------------- -------------
resulting from operations 1,781,372 1,199,852 4,637,429 1,928,349 859,271 529,520
------------- -------------- ------------- ------------- -------------- -------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income:
Capital Shares (1,503,025) (1,486,952) (3,535,052) (4,412,560) (717,065) (1,052,079)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
From net realized gains:
Capital Shares ------ ------ ------ ------ (195,581) (551,669)
S Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
Return of capital ------ ------ ------ ------ ------ ------
Change in net assets from
------------- -------------- ------------- ------------- -------------- -------------
shareholder distributions $ (1,503,025) $ (1,486,952) $ (3,535,052) $ (4,412,560) $ (912,646) $ (1,603,748)
------------- -------------- ------------- ------------- -------------- -------------
See note to financial statements
35
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
LIMITED TERM BOND BOND MUNICIPAL BOND
---------------------------- ------------------------------ -----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006
------------- -------------- ------------- ------------- -------------- -------------
CAPITAL SHARE TRANSACTIONS:
ISSUED:
Capital Shares $ 3,165,008 $ 6,670,575 $ 7,675,213 $ 12,291,124 $ 782,079 $ 1,724,285
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 395,173 456,636 780,788 1,210,236 85,990 137,414
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (16,441,905) (19,216,854) (31,394,347) (27,566,466) (9,684,773) (13,069,959)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
Change in net assets from
------------- -------------- ------------- ------------- -------------- -------------
capital transactions (12,881,724) (12,089,643) (22,938,346) (14,065,106) (8,816,704) (11,208,260)
------------- -------------- ------------- ------------- -------------- -------------
Change in net assets (12,603,376) (12,376,743) (21,835,969) (16,549,317) (8,870,079) (12,282,488)
NET ASSETS:
Beginning of year 44,873,817 57,250,560 96,122,648 112,671,965 26,286,620 38,569,108
------------- -------------- ------------- ------------- -------------- -------------
End of year $ 32,270,441 $ 44,873,817 $ 74,286,679 $ 96,122,648 $ 17,416,541 $ 26,286,620
============= ============== ============= ============= ============== =============
See note to financial statements
36
VINTAGE MUTUAL FUNDS, INC.
STATEMENTS OF CHANGES IN NET ASSETS
LIMITED TERM BOND BOND MUNICIPAL BOND
---------------------------- ---------------------------- -----------------------------
Year Year Year Year Year Year
Ended Ended Ended Ended Ended Ended
March 31, March 31, March 31, March 31, March 31, March 31,
2007 2006 2007 2006 2007 2006
------------- -------------- ------------- ------------- -------------- -------------
SHARE TRANSACTIONS:
ISSUED:
Capital Shares 334,855 703,873 797,095 1,255,250 77,211 166,389
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REINVESTMENTS:
Capital Shares 41,833 48,273 81,308 123,586 8,493 13,273
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
REDEMPTIONS:
Capital Shares (1,740,885) (2,030,038) (3,275,377) (2,816,589) (954,834) (1,260,290)
S Shares ------ ------ ------ ------ ------ ------
S2 Shares ------ ------ ------ ------ ------ ------
T Shares ------ ------ ------ ------ ------ ------
I Shares ------ ------ ------ ------ ------ ------
------------- -------------- ------------- ------------- -------------- -------------
Change in shares (1,364,197) (1,277,892) (2,396,974) (1,437,753) (869,130) (1,080,628)
============= ============== ============= ============= ============== =============
See note to financial statements
37
Vintage Mutual Funds, Inc.
Notes to Financial Statements
March 31, 2007
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. WB Capital
Management ("WB Capital") is the investment adviser to the Vintage Mutual Funds.
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 same account balance as they had in Government Assets Fund. Liquid
Assets Fund acquired the assets of Government Assets Fund at a fair value of
$39,101,288. 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 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.
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 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.
38
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 adviser, 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.
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.
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.
NEW ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes - an
Interpretation of FASB Statement No. 109" (FIN 48). FIN 48 establishes a minimum
threshold for financial statement recognition of the benefit of positions taken
in filing tax returns (including whether an entity is taxable in a particular
jurisdiction), and requires certain expanded tax disclosures. FIN 48 is
effective for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the date of effectiveness. The FASB issued
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
(FAS 157), in September 2006, which is effective for fiscal years beginning
after November 15, 2007. FAS 157 defines fair value, establishes a framework for
measuring fair value and expands the required financial statement disclosures
about fair value measurements. Management is currently evaluating the impact of
adopting FIN 48 and FAS 157.
39
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (excluding short-term securities) for the year
ended March 31, 2007 are as follows:
Proceeds
Purchases From Sales
--------- ----------
Limited Term Bond $ 12,430,815 $ 25,338,710
Bond Fund $ 16,113,061 $ 39,998,924
Municipal Bond $ 10,626,673 $ 19,617,241
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 fiscal year ended March 31, 2007.
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. As of March 31, 2007, 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.
40
BISYS Fund Services Limited Partnership serves as distributor to the Funds
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 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 Fund and Municipal
Assets Funds, Limited Term Bond Fund, Bond Fund, and Municipal Bond Fund. As of
March 31, 2007, 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, 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 year ended March 31, 2007,
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 fiscal year
ended March 31, 2007, WB Capital received $41,000 in transfer agent service
fees. BISYS Fund Services Limited Partnership 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.
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 March 31, 2007 for tax purposes follow:
Aggregate Aggregate Net
Unrealized Unrealized Unrealized Cost of
Gain (Loss) Gain (Loss) Investments
---- ------ ----------- -----------
Institutional Money
Market Fund $ - $ - $ - $106,899,787
Institutional Reserves Fund - - - 66,374,646
Liquid Assets Fund - - - 127,699,255
Municipal Assets Fund - - - 14,044,450
Limited Term Bond Fund 58,190 (185,261) (145,450) 32,245,844
Bond Fund 499,944 (954,484) (454,539) 74,477,463
Municipal Bond Fund 155,619 (53,772) 101,847 17,121,365
Distributable earnings as of March 31, 2007 for tax purposes follow:
Distributable Earnings
----------------------
Ordinary Long-term
Income Gains Tax Exempt
------ ----- ----------
Institutional Money
Market Fund $ 397,714 $ - $ -
Institutional Reserves Fund 266,333 - -
Liquid Assets Fund 500,207 - -
Municipal Assets Fund - - 32,501
Limited Term Bond Fund 145,258 - -
Bond Fund 267,546 - -
Municipal Bond Fund - 29,819 49,539
41
Distributable earnings as of March 31, 2006 for tax purposes follow:
Distributable Earnings
Ordinary Long-term
Income Gains (Losses) Tax Exempt
------ -------------- -----------
Institutional Money Market Fund $ 204,712 $ - $ -
Institutional Reserves Fund 166,865 - -
Liquid Assets Fund 407,015 - -
Municipal Assets Fund - 33,377
Limited Term Bond Fund 249,853 - -
Bond Fund 354,539 - -
Municipal Bond Fund - 108,488 71,735
Distributable earnings for the year ended March 31, 2006 for tax purposes
follow:
Tax Distributions
-----------------
Ordinary Long-term Return of
Income Capital Gains Tax Exempt Capital
------ ------------- ---------- -------
Institutional Money Market Fund $3,769,617 $ - $ - $ -
Institutional Reserves Fund 3,149,246 - - -
Liquid Assets Fund 5,411,064 - - -
Municipal Assets Fund - - 395,441 -
Limited Term Bond Fund 1,516,206 - - -
Bond Fund 3,611,330 - - -
Municipal Bond Fund - 195,581 739,944 -
Distributions for the year ended March 31, 2007 for tax purposes follow:
Tax Distributions
-----------------
Ordinary Long-term Return of
Income Capital Gains Tax Exempt Capital
------ ------------- ---------- -------
Institutional Money Market Fund $ 880,028 $ - $ - $ -
Institutional Reserves Fund 1,896,964 - - -
Liquid Assets Fund 2,924,491 - - -
Municipal Assets Fund - 389,744 -
Limited Term Bond Fund 1,488,584 - - -
Bond Fund 4,441,663 - - -
Municipal Bond Fund - 551,669 1,081,120 -
Distributions for the year ended March 31, 2006 for tax purposes follow:
For tax purposes, the following Funds have capital loss carryovers as of
March 31, 2007, 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 Limited Term
Assets Fund Bond Fund Bond Fund
----------- --------- ---------
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
March 31, 2015 402,719 856,954
------------- -------------- ---------------
Total Carryover $ 11,167 $ 3,322,041 $ 3,073,655
============= ============== ===============
At March 31, 2007, the Limited Term Bond Fund had $33,561 in deferred
capital losses occurring subsequent to October 31, 2006. For tax purposes,
such losses will be reflected in the year ended March 31, 2008.
42
6. OTHER TAX INFORMATION (UNAUDITED):
The Municipal Bond Fund designated $195,581 of capital gain dividends for the
fiscal year ended March 31, 2007. The Municipal Assets Fund and the Municipal
Bond Fund designated $395,441and $739,944, respectively, of tax-exempt dividends
for the fiscal year ended March 31, 2007.
43
Vintage Mutual Funds, Inc.
Financial Highlights
INVESTMENT ACTIVITIES DIVIDENDS AND DISTRIBUTIONS
----------------------------------------- -----------------------------------------
NAV Net Net Realized/ Total from From Net From Net Return Dividends NAV
Beginning Investment Unrealized Investment Investment Realized of and End of
of Period Income (Loss) Gains (Losses) Activities Income Gains Capital Distributions Period
--------- ------------- -------------- ---------- ------ ----- ------- ------------- ------
Institutional Money Market Fund
Year Ended March 31, 2007 $1.00 0.05 0.00 0.05 (0.05) 0.00 0.00 (0.05) $1.00
Year Ended March 31, 2006 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04) $1.00
From March 7, 2005
through March 31, 2005 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
INSTITUTIONAL RESERVES FUND
Year Ended March 31, 2007 $1.00 0.05 0.00 0.05 (0.05) 0.00 0.00 (0.05) $1.00
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03) $1.00
Year Ended March 31, 2005 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2004 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
LIQUID ASSETS FUND "S" SHARES
Year Ended March 31, 2007 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04) $1.00
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
LIQUID ASSETS FUND "S2" SHARES
Year Ended March 31, 2007 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04) $1.00
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
LIQUID ASSETS FUND "T" SHARES
Year Ended March 31, 2007 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04) $1.00
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
LIQUID ASSETS FUND "I" SHARES
Year Ended March 31, 2007 $1.00 0.04 0.00 0.04 (0.04) 0.00 0.00 (0.04) $1.00
Year Ended March 31, 2006 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
MUNICIPAL ASSETS FUND "S" SHARES
Year Ended March 31, 2007 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
MUNICIPAL ASSETS FUND "T" SHARES
Year Ended March 31, 2007 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
MUNICIPAL ASSETS FUND "I" SHARES
Year Ended March 31, 2007 $1.00 0.03 0.00 0.03 (0.03) 0.00 0.00 (0.03) $1.00
Year Ended March 31, 2006 $1.00 0.02 0.00 0.02 (0.02) 0.00 0.00 (0.02) $1.00
Year Ended March 31, 2005 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
Year Ended March 31, 2004 $1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $1.00
Year Ended March 31, 2003 $1.00 0.01 0.00 0.01 (0.01) 0.00 0.00 (0.01) $1.00
See note to financial statements
44
Vintage Mutual Funds, Inc.
Financial Highlights
TOTAL RETURN/RATIOS/SUPPLEMENTARY DATA
-------------------------------------------------------------------------------------------
Net Assets Expenses to Investment Expenses to Investment
Total End of Period Average Income (Loss) to Average Income (Loss) to
Return (000 omitted) Net Assets Average Net Assets Net Assets* Average Net Assets*
------ ----------------------- ------------------- --------- -------------------
Institutional Money Market Fund
Year Ended March 31, 2007 5.13% $107,018 0.21% 5.01% 0.75% 4.47%
Year Ended March 31, 2006 3.64% $63,486 0.21% 3.94% 0.74% 3.41%
From March 7, 2005
through March 31, 2005 0.17% ** $10,112 0.15% *** 2.54% *** 0.74% *** 1.95% ***
INSTITUTIONAL RESERVES FUND
Year Ended March 31, 2007 4.98% $66,263 0.33% 4.89% 0.72% 4.50%
Year Ended March 31, 2006 3.47% $46,155 0.30% 3.43% 0.72% 3.01%
Year Ended March 31, 2005 1.59% $43,673 0.17% 1.62% 0.72% 1.07%
Year Ended March 31, 2004 1.03% $33,034 0.14% 1.00% 0.68% 0.46%
LIQUID ASSETS FUND "S" SHARES
Year Ended March 31, 2007 3.88% $10,138 1.45% 3.87% 1.55% 3.77%
Year Ended March 31, 2006 2.39% $11,581 1.48% 2.36% 1.58% 2.26%
Year Ended March 31, 2005 0.56% $13,371 1.32% 0.41% 1.58% 0.16%
Year Ended March 31, 2004 0.08% $37,139 1.37% 0.08% 1.55% (0.10%)
Year Ended March 31, 2003 0.56% $74,250 1.36% 0.56% ----- -----
LIQUID ASSETS FUND "S2" SHARES
Year Ended March 31, 2007 4.14% $36,028 1.20% 4.02% 1.30% 3.92%
Year Ended March 31, 2006 2.65% $60,514 1.23% 2.64% 1.33% 2.54%
Year Ended March 31, 2005 0.77% $48,241 1.16% 0.88% 1.33% 0.71%
Year Ended March 31, 2004 0.29% $28,748 1.12% 0.29% 1.30% 0.10%
Year Ended March 31, 2003 0.81% $3,958 1.11% 0.86% ----- -----
LIQUID ASSETS FUND "T" SHARES
Year Ended March 31, 2007 4.40% $15,212 0.95% 4.28% 1.05% 4.18%
Year Ended March 31, 2006 2.90% $27,537 0.98% 3.04% 1.08% 2.94%
Year Ended March 31, 2005 0.94% $13,461 0.98% 0.93% 1.08% 0.83%
Year Ended March 31, 2004 0.41% $18,804 0.87% 0.41% 1.05% 0.23%
Year Ended March 31, 2003 1.06% $29,287 0.86% 1.09% ----- -----
LIQUID ASSETS FUND "I" SHARES
Year Ended March 31, 2007 4.55% $64,181 0.80% 4.52% ----- -----
Year Ended March 31, 2006 3.06% $32,616 0.83% 3.28% ----- -----
Year Ended March 31, 2005 1.09% $10,357 0.83% 1.03% ----- -----
Year Ended March 31, 2004 0.56% $22,734 0.62% 0.56% 0.80% 0.38%
Year Ended March 31, 2003 1.22% $28,948 0.71% 1.21% ----- -----
MUNICIPAL ASSETS FUND "S" SHARE
Year Ended March 31, 2007 2.23% $573 1.34% 2.18% 1.48% 2.05%
Year Ended March 31, 2006 1.58% $2,102 1.13% 1.55% 1.32% 1.36%
Year Ended March 31, 2005 0.54% $2,942 0.90% 0.55% 1.34% 0.10%
Year Ended March 31, 2004 0.23% $2,783 1.20% 0.24% 1.65% (0.21%)
Year Ended March 31, 2003 0.35% $2,993 1.10% 0.33% 1.17% 0.26%
MUNICIPAL ASSETS FUND "T" SHARE
Year Ended March 31, 2007 2.49% $3,444 1.09% 2.45% 1.23% 2.32%
Year Ended March 31, 2006 1.75% $3,276 0.97% 1.72% 1.07% 1.62%
Year Ended March 31, 2005 0.58% $3,961 0.85% 0.59% 1.09% 0.35%
Year Ended March 31, 2004 0.26% $3,666 0.95% 0.26% 1.16% 0.05%
Year Ended March 31, 2003 0.55% $5,493 0.92% 0.56% ----- -----
MUNICIPAL ASSETS FUND "I" SHARE
Year Ended March 31, 2007 2.64% $9,755 0.94% 2.60% 0.98% 2.57%
Year Ended March 31, 2006 1.90% $12,926 0.82% 1.87% ----- -----
Year Ended March 31, 2005 0.64% $19,819 0.79% 0.60% 0.84% 0.55%
Year Ended March 31, 2004 0.30% $27,471 0.70% 0.31% ----- -----
Year Ended March 31, 2003 0.70% $33,568 0.77% 0.68% ----- -----
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
** Total return is for the period and has not been annualized.
*** Ratios are annualized.
See note to financial statements
45
Vintage Mutual Funds, Inc.
Financial Highlights
INVESTMENT ACTIVITIES DIVIDENDS AND DISTRIBUTIONS
----------------------------------------- -----------------------------------------
NAV Net Net Realized/ Total from From Net From Net Return Dividends NAV
Beginning Investment Unrealized Investment Investment Realized of and End of
of Period Income (Loss) Gains (Losses) Activities Income Gains Capital Distributions Period
--------- ------------- -------------- ---------- ------ ----- ------- ------------- ------
LIMITED TERM BOND FUND
Year Ended March 31, 2007 $9.41 0.37 0.09 0.46 (0.39) 0.00 0.00 (0.39) $9.48
Year Ended March 31, 2006 $9.47 0.30 (0.08) 0.22 (0.28) 0.00 0.00 (0.28) $9.41
Year Ended March 31, 2005 $9.76 0.26 (0.29) (0.03) (0.24) 0.00 (0.02) (0.26) $9.47
Year Ended March 31, 2004 $9.62 0.28 0.14 0.42 (0.28) 0.00 0.00 (0.28) $9.76
Year Ended March 31, 2003 $9.98 0.47 (0.36) 0.11 (0.47) 0.00 0.00 (0.47) $9.62
BOND FUND
Year Ended March 31, 2007 $9.56 0.42 0.14 0.56 (0.42) 0.00 0.00 (0.42) $9.70
Year Ended March 31, 2006 $9.80 0.40 (0.24) 0.16 (0.40) 0.00 0.00 (0.40) $9.56
Year Ended March 31, 2005 $10.05 0.40 (0.25) 0.15 (0.40) 0.00 0.00 (0.40) $9.80
Year Ended March 31, 2004 $9.78 0.41 0.28 0.69 (0.42) 0.00 0.00 (0.42) $10.05
Year Ended March 31, 2003 $9.94 0.58 (0.14) 0.44 (0.59) (0.01) 0.00 (0.60) $9.78
MUNICIPAL BOND FUND
Year Ended March 31, 2007 $10.12 0.35 0.06 0.41 (0.35) (0.10) 0.00 (0.45) $10.08
Year Ended March 31, 2006 $10.49 0.33 (0.19) 0.14 (0.33) (0.18) 0.00 (0.51) $10.12
Year Ended March 31, 2005 $11.02 0.34 (0.38) (0.04) (0.34) (0.15) 0.00 (0.49) $10.49
Year Ended March 31, 2004 $11.06 0.37 0.07 0.44 (0.38) (0.10) 0.00 (0.48) $11.02
Year Ended March 31, 2003 $10.54 0.40 0.54 0.94 (0.40) (0.02) 0.00 (0.42) $11.06
- -------------------------------
*During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
See note to financial statements
46
Vintage Mutual Funds, Inc.
Financial Highlights
TOTAL RETURN/RATIOS/SUPPLEMENTARY DATA
---------------------------------------------------------------------------------------------------
Net Assets Expenses to Investment Expenses to Investment
Total End of Period Average Income (Loss) to Average Income (Loss) to Portfolio
Return (000 omitted) Net Assets Average Net Assets Net Assets* Average Net Assets* Turnover
------ ----------------------- ------------------- --------- ------------------- ---------
LIMITED TERM BOND FUND
Year Ended March 31, 2007 4.98% $32,270 0.77% 3.72% 1.30% 3.19% 33.35%
Year Ended March 31, 2006 2.31% $44,874 0.89% 3.05% 1.26% 2.68% 64.57%
Year Ended March 31, 2005 (0.27%) $57,251 0.89% 2.72% 1.24% 2.38% 43.35%
Year Ended March 31, 2004 4.37% $65,881 0.96% 2.85% ----- ----- 73.81%
Year Ended March 31, 2003 1.13% $58,746 0.92% 4.73% ----- ----- 55.05%
BOND FUND
Year Ended March 31, 2007 6.00% $74,287 0.78% 4.33% 1.32% 3.79% 19.95%
Year Ended March 31, 2006 1.67% $96,123 0.97% 3.85% 1.27% 3.55% 28.60%
Year Ended March 31, 2005 1.47% $112,672 0.98% 3.97% 1.28% 3.67% 46.31%
Year Ended March 31, 2004 7.08% $125,496 0.99% 4.12% ----- ----- 79.75%
Year Ended March 31, 2003 4.46% $131,296 0.95% 5.78% ----- ----- 32.67%
MUNICIPAL BOND FUND
Year Ended March 31, 2007 3.08% $17,417 0.76% 3.38% 1.33% 2.80% 50.48%
Year Ended March 31, 2006 1.30% $26,287 0.94% 3.09% 1.19% 2.84% 32.16%
Year Ended March 31, 2005 (0.34%) $38,569 0.99% 3.15% 1.24% 2.90% 37.92%
Year Ended March 31, 2004 3.91% $43,520 0.93% 3.30% ----- ----- 24.51%
Year Ended March 31, 2003 9.06% $47,187 0.85% 3.60% ----- ----- 9.95%
See note to financial statements
47
Report of Independent Registered
Public Accounting Firm
To the Shareholders and Board of Directors of
Vintage Mutual Funds, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of the Institutional Money Market Fund,
Institutional Reserves Fund, Liquid Assets Fund, Municipal Assets Fund, Vintage
Limited Term Bond Fund, Vintage Bond Fund, Vintage Municipal Bond Fund (the
"Funds"), comprising Vintage Mutual Funds, Inc., as of March 31, 2007, and the
related statements of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for the periods presented. These financial statements
and financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. The financial highlights for the
period ended March 31, 2003 were audited by other auditors whose report, dated
May 16, 2003, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Funds
are not required to have, nor were we engaged to perform, an audit of their
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Funds' internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of March 31, 2007, by correspondence with the custodian
and brokers. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds comprising Vintage Mutual Funds, Inc. as of March 31,
2007, the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and the
financial highlights for the periods presented (except as noted above in
reference to the reports of other auditors), in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Kansas City, Missouri
May 18, 2007
48
DIRECTORS AND OFFICERS Vintage Mutual Funds, Inc.
The following table contains basic information regarding directors and officers,
respectively that oversee operations of the Vintage Funds complex.
- ----------------------- ------------ ----------- -------------------- ----------- ---------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS OTHER
POSITION AND OVERSEEN DIRECTORSHIPS
NAME, CONTACT, HELD WITH LENGTH OF PRINCIPAL BY HELD OUTSIDE
ADDRESS AND AGE VINTAGE TIME OCCUPATIONS DURING DIRECTOR OF VINTAGE
SERVED PAST FIVE YEARS
- ----------------------- ------------ ----------- --------------------- ----------- ---------------
INDEPENDENT DIRECTORS:
William J. Howard, Director Since 1998 Attorney, William J. 7 None
1415 28th Street, Howard Attorney at
Suite 200, West Des Law from 1998 to
Moines, IA 50266, present
Age 61
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Debra L. Johnson Jones, Director Since 1998 President, Vodaci 7 None
1415 28th Street, Technologies from
Suite 200, West Des 2000 to present
Moines, IA 50266,
Age 46
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Fred Lorber, Director Since 1998 Retired 7 None
1415 28th Street,
Suite 200,
West Des Moines, IA 50266,
Age 83
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Edward J. Stanek, Director Since 1998 President and CEO, 7 None
Ph.D. Iowa Lottery from
1415 28th Street, 1985 to present;
Suite 200, West Des Chairman,
Moines, IA 50266, International Game
Age 60 Group from 2000 to
present; Senior Vice
President, World
Lottery Association
from 1999 to present
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Steven Zumbach, Chair, Since 1998 Attorney, Belin, 8 None
1415 28th Street, Director Lamson, McCormick,
Suite 200, West Des Zumbach, and Flynn
Moines, IA 50266, from 1977 to present
Age 57
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
OFFICERS:
Jeffrey D. Lorenzen President Since 2005 President and CIO, N/A N/A
1415 28th Street, WB Capital from
Suite 200, West Des 1992 to present
Moines, IA 50266, Age
41
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Amy Mitchell, Secretary/ Since 1998 Secretary, N/A N/A
1415 28th Street, Treasurer WB Capital from
Suite 200, West Des 1990 to present
Moines, IA 50266,
Age 37
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
Vera Lichtenberger Chief Since 2005 CCO, WB Capital N/A N/A
1415 28th Street, Compliance from 2004 to present;
Suite 200, West Des Officer Iowa Legal Aid
Moines, IA 50266, 2002-2004
Age 55
- ----------------------- ------------ ----------- ---------------------- ----------- ---------------
The statement of Additional Information (SAI) has additional information about
the Funds' Directors and is available without charge, upon request, by calling
1-800-798-1819.
49
Vintage Mutual Funds, Inc.
Additional Information (unaudited)
March 31, 2007
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 October 1, 2006 to March 31, 2007. The table on page 51
illustrates your fund's costs in two ways:
A. 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.
B. 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.
50
Vintage Mutual Funds, Inc.
Additional Information (unaudited) (continued)
March 31,2007
YEAR ENDED MARCH 31, 2007
BEGINNING ENDING EXPENSES PAID ANNUALIZED
Account Value Account Value During Period* Expense
Vintage Mutual Funds 10/1/2006 3/31/2007 10/1/06-3/31/07 Ratio*
- -----------------------------------------------------------------------------------------
BASED ON ACTUAL FUND RETURN
Money Market Funds:
Institutional Money Market Fund $ 1,000.00 $ 1,026.26 $ 1.14 0.22%
Institutional Reserves Fund 1,000.00 1,025.57 1.71 0.34%
Liquid Assets Fund S Shares 1,000.00 1,020.20 7.16 1.42%
Liquid Assets Fund S2 Shares 1,000.00 1,021.52 5.90 1.17%
Liquid Assets Fund T Shares 1,000.00 1,022.84 4.64 0.92%
Liquid Assets Fund I Shares 1,000.00 1,023.64 3.89 0.77%
Municipal Assets Fund S Shares 1,000.00 1,011.38 6.72 1.34%
Municipal Assets Fund T Shares 1,000.00 1,012.67 5.47 1.09%
Municipal Assets Fund I Shares 1,000.00 1,013.45 4.72 0.94%
Fixed Income Funds:
Limited Term Bond Fund 1,000.00 1,024.07 3.78 0.75%
Bond Fund 1,000.00 1,024.82 3.79 0.75%
Municipal Bond Fund 1,000.00 1,013.55 3.77 0.75%
- -------------------------------------------------------------------------------------
BASED ON HYPOTHETICAL 5% RETURN
Money Market Funds:
Institutional Money Market Fund $ 1,000.00 $ 1,023.81 $ 1.13 0.22%
Institutional Reserves Fund 1,000.00 1,023.24 1.71 0.34%
Liquid Assets Fund S Shares 1,000.00 1,017.85 7.15 1.42%
Liquid Assets Fund S2 Shares 1,000.00 1,019.09 5.89 1.17%
Liquid Assets Fund T Shares 1,000.00 1,020.34 4.64 0.92%
Liquid Assets Fund I Shares 1,000.00 1,021.09 3.88 0.77%
Municipal Assets Fund S Shares 1,000.00 1,018.25 6.74 1.34%
Municipal Assets Fund T Shares 1,000.00 1,019.50 5.49 1.09%
Municipal Assets Fund I Shares 1,000.00 1,020.24 4.73 0.94%
Fixed Income Funds:
Limited Term Bond Fund 1,000.00 1,021.19 3.78 0.75%
Bond Fund 1,000.00 1,021.19 3.78 0.75%
Municipal Bond Fund 1,000.00 1,021.19 3.78 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.
51
Vintage Mutual Funds, Inc.
Additional Information (unaudited) (continued)
March 31,2007
2. PROXY VOTING POLICIES AND PROCEDURES, PROXY VOTING RECORD AND SCHEDULE OF
PORTFOLIO HOLDINGS FROM N-PX
Complete schedules of portfolio holding 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 securites, there are no votes
recorded.
Form N-PX and the Form N-Q are available upon request:
By calling the Funds toll free at 1-800-798-1819,
At www.sec.gov, or by phone at 1-800-SEC-0330 or,
By mail at Public Reference Section, SEC, Washington, D.C. 20549
(duplicating fee required).
52
Vintage Mutual Funds, Inc.
Additional Information (unaudited) (continued)
March 31,2007
3. BASIS FOR APPROVAL OF CONTINUATION OF THE INVESTMENT ADVISORY AGREEMENT
The Board approved the continuation of the investment advisory agreement with WB
Capital at its March, 2007 meeting. The board determined that continuing the
agreement was in the best interests of the Fund and its shareholders. The
decision was based on an evaluation of the investment adviser on the date of the
meeting, as well as the evaluation the Board undertakes throughout the year.
The Board reviewed a great deal of data, including the factors summarized below,
in coming to its decision. The Board based its decision on the totality of the
information reviewed and discussed, with no single factor determining its
decision.
The Board reviewed the quality of the investment advice. Jeffrey Lorenzen, the
Chief Investment Officer for the adviser, has been working with the Funds since
1992. The Board noted the stability of the management team, as well as their
extensive experience. WB Capital (formerly Investors Management Group) has been
the Fund adviser since its inception.
The Board reviewed the investment performance of the Funds, comparing the
performance with peer group rankings as well as benchmarks. The Board reviews
the investment performance throughout the year, as well as at the meeting where
it decides whether to continue the investment advisory agreement. The Board
noted that throughout the year the adviser had brought to the Board its
recommendations for Fund improvement, and the implementation of those
recommendations resulted in better Fund performance.
The Board also reviewed the advisory fees charged under the agreement, and
compared those fees with fees charges by other advisors of comparable funds, as
well as comparing the fees charged by the adviser to its other clients. The
Board reviewed the fee waivers in effect throughout the past 12 months, and the
fee waivers which were in effect at the date of the meeting. The board
determined that the fees charged under the advisory agreement were reasonable in
comparison to peer group fees for similar funds.
The Board also reviewed the Funds' total expense ratio relative to the peer
group. The Board noted that the bond funds total expenses had been capped at 75
basis points in May 2006, and such a cap continued in place, which improved the
performance of those funds. The Board reviewed the total expense ratio for each
Fund, and noted the expense savings which had been achieved by the change in
minimum investment and the liquidation of one of the Funds (Government Assets
Fund) over the past year. The Board discussed the need to increase distribution
in the remaining Funds in order to spread the costs of the expenses over a
broader base. The Board determined that the total expense ratio had shown
improvement and ranged from very competitive to reasonable.
The new owner of the adviser, West Bancorporation, is a publicly traded company,
and does not disclose the profitability of its subsidiaries. However, the Board
noted the extensive fee waivers in effect, and the decline in revenue to the
advisor, with no decline in investment personnel. The Board also noted that no
soft dollar arrangements are in effect for the Funds.
The Board will consider whether to continue the advisory agreement again in one
year.
53
Service Providers
INVESTMENT ADVISER and
ADMINISTRATOR
WB Capital Management Inc.
1415 28th Street, Suite 200
West Des Moines, Iowa 50266-1461
DISTRIBUTOR
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 L.L.P.
1100 Walnut Street, Suite 3300
Kansas City, Missouri 64106
ANNUAL REPORT FOR THE PERIOD ENDING MARCH 31, 2007.
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 NOT AMENDED DURING THE REPORTING PERIOD.
(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)The aggregate fees for each of the last two fiscal years for professional
services rendered by the principal accountant for the audit of the registrant's
annual financial statements or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements
are listed below. These numbers include professional services for the
preparation of the Registrant's tax returns.
March 31, 2006 $107,565
March 31, 2007 $96,015
(B) AUDIT FEES.
March 31, 2006 $91,565
March 31, 2007 $80,615
(C) TAX PREPARATION FEES.
March 31, 2006 $16,000
March 31, 2007 $15,400
(D)NOT APPLICABLE.
(E)NOT APPLICABLE.
(F)NOT APPLICABLE.
(G) The aggregate fees for each of the last two fiscal years for professional
services rendered by the principal accountant for the audit of the investment
adviser for internal control under 17Ad-13 (transfer agency).
March 31, 2006 $18,200
March 31, 2007 $19,500
(H) The audit committee of the registrant's Board of Directors considered the
effect of the services performed for the investment adviser and decided the
engagement did not compromise the independence of the auditor.
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 MAY 30, 2007, 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 12. 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: June 1, 2007
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
June 1, 2007
/s/ Amy M. Mitchell, Treasurer and Principal Financial and Accounting Officer,
- ------------------------------------------------------------------------------
Amy M. Mitchell
June 1, 2007