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Kent Funds – ‘N-30D’ for 6/30/99

On: Thursday, 9/2/99 · For: 6/30/99 · Accession #: 1047469-99-34601 · File #: 811-04824

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 9/02/99  Kent Funds                        N-30D       6/30/99    1:526K                                   Merrill Corp/New/FA

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to               278±  1.05M 
                          Shareholders

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Michigan
1	1st Page - Filing Submission
96	Michigan

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[LOGO]                                                                          

SEMI-                                                                           
ANNUAL                                                                          
REPORT                                                                          

June 30, 1999                                                                   

Kent Growth and Income Fund                                                     
Kent Small Company Growth Fund                                                  
Kent International Growth Fund                                                  
Kent Index Equity Fund                                                          
Kent Short Term Bond Fund                                                       
Kent Intermediate Bond Fund                                                     
Kent Income Fund                                                                
Kent Intermediate Tax-Free Fund                                                 
Kent Tax-Free Income Fund                                                       
Kent Michigan Municipal Bond Fund                                               
Kent Money Market Fund                                                          
Kent Michigan Municipal Money Market Fund                                       
Kent Government Money Market Fund                                               

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                                                 MESSAGE TO SHAREHOLDERS
Dear Kent Funds Shareholder:                                                    

Following is the Semi-Annual Report for the Kent Funds for the six months   
ended June 30, 1999. The report contains the following features:                

-  Economic Outlook by Joseph T. Keating, President and Chief Investment    
Officer, Lyon Street Asset Management Company                         

 -  Portfolio Reviews -- investment strategy, performance overview and outlook
for the coming months for each of the Kent Funds                      

 -  Schedules of Portfolio Investments -- summary of the holdings in each fund
by industry                                                           

-  Statements of Assets and Liabilities -- summary of the assets and        
liabilities of each fund                                              

-  Statements of Operations -- summary of operations and its effect on the  
assets of each fund                                                   

-  Statements of Changes in Net Assets -- summary of changes in net assets  
during period                                                         

-  Notes to Financial Statements                                            

-  Financial Highlights -- per share summary of activity affecting net asset
value                                                                 

We appreciate the confidence you have placed in us and continue to focus on 
providing our shareholders with good value and attractive potential for growth. 
If you have any questions about your investments after reading this report,     
please call the Kent Funds Shareholder Servicing Center at 1-800-633-KENT (5368)
between the hours of 8:00 a.m. and 9:00 p.m. Eastern Time.                      

We remain committed to sound investment principles and to providing you with
useful information that can help you make the most of your investments.         

Sincerely,                                                                      

[/S/ JAMES F. DUPA]                                                           
James F. Duca, II                                                               
President                                                                       
INVESTMENT ADVISER

Lyon Street Asset Management Company
111 Lyon Street N.W.
Grand Rapids, MI 49503
SHARES OF THE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR    
ENDORSED BY, LYON STREET ASSET MANAGEMENT COMPANY OR ANY OF ITS AFFILIATES. 
SHARES OF THE FUNDS ARE NOT FEDERALLY INSURED BY THE U.S. GOVERNMENT, THE   
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY     
OTHER AGENCY. INVESTMENT RETURN AND PRINCIPAL VALUE WILL VARY AS A RESULT OF
MARKET CONDITIONS AND OTHER FACTORS, SO THAT SHARES OF THE FUNDS, WHEN      
REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. AN INVESTMENT 
IN THE FUNDS INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF      
PRINCIPAL. THERE CAN BE NO ASSURANCE THAT THE MONEY MARKET FUNDS WILL BE    
ABLE TO SUSTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.                

This report is submitted for the general information of shareholders of the Kent
Funds. It is not authorized for distribution to prospective investors unless    
preceded or accompanied by an effective prospectus for the funds, which contains
more information concerning the funds' investment policies as well as fees and  
expenses and other pertinent information. Please read the prospectus carefully  
before investing. The distributor for the Kent Funds is Kent Funds Distributors,
Inc.                                                                            

The performance indices used for comparison in this report are unmanaged        
indices. Unlike actual mutual fund performance, the performance of an index does
not reflect any management fees, other expenses or sales charges. A direct      
investment in the unmanaged index is not possible.                              

                                                                 1

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ECONOMIC OUTLOOK                                                        

I. REAL ECONOMIC ACTIVITY                                                       

A. MR. GREENSPAN'S STERN WARNING.                                               

This remarkable economic expansion continues to roll along, now 100 months  
old. It is already the LONGEST PEACETIME EXPANSION on record and, in six months 
will achieve the distinction of the LONGEST EXPANSION OF ALL TIME. The expansion
received a second wind during the past two years from a drop in interest rates, 
lower gasoline prices, a surge in mortgage refinance activity, and a surging    
stock market. A somewhat mixed report on the economy for the second quarter and 
a less ebullient outlook are directly related to the factors above becoming less
supportive of future growth.                                                    

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

   REAL ECONOMIC ACTIVITY*                                                      
             1999                                                               
                             DOMESTIC      PERSONAL      RESIDENTIAL   BUSINESS 
                              PRIVATE     CONSUMPTION   CONSTRUCTION   CAPITAL  
                            FINAL SALES  EXPENDITURES      OUTLAYS     SPENDING 
                                                                                
2Q                                 5.0%           4.0%           5.1%      10.8%
1Q                                 7.5%           6.7%          15.4%       8.5%
*Annualized                                                                     

 Gasoline prices have rebounded in recent months, while refinance activity has
plunged. The Federal Reserve raised short-term interest rates from 4.75 to 5.00 
percent on June 30 and has sent stern warnings that additional hikes could be on
the way. The stock market has held up very well in this environment, but few    
analysts are looking for a continuation of the heady gains of the past four and 
a half years.                                                                   
Federal Reserve Chairman Alan Greenspan's testimony before the House Banking
Committee in late July caught many analysts and investors by surprise due to its
more hawkish tone than the official statement released after the last Federal   
Reserve meeting. Mr. Greenspan emphasized that the Federal Reserve is prepared  
to intervene "PROMPTLY AND FORCEFULLY" as soon as it detects signs that         
inflation is likely to increase. An unexpectedly large jump in the second       
quarter employment cost index, a bellwether of inflationary pressures, roiled   
the financial markets during the last two days of July and raised the likelihood
of a rate hike at the next meeting of the Federal Reserve on August 24.         
What needs to be analyzed is whether conditions have changed enough to      
continue the incipient slowdown in the pace of economic activity that is evident
in the recent economic reports or whether the Federal Reserve will need to      
tighten monetary policy more aggressively. Related to this analysis, and key to 
the conclusions, is the outlook for inflation and labor cost pressures.         

B. A MIXED ECONOMIC PICTURE DURING THE SECOND QUARTER.                          

 The economy is reported to have grown at a 2.3 percent annual rate during the
second quarter, well beneath the 4.3 percent rate seen in the first quarter and 
little more than a third of the 6.0 percent pace of the 1998's fourth quarter.  
While the economy's growth rate did moderate, a look behind the headline number 
shows a still strong, yet moderating, pace of final demand.                     
Our best measure of final demand in the economy is domestic private final   
sales, the sum of consumer spending, housing construction, and business capital 
spending. While this measure did slow in the second quarter from its first      
quarter pace, it was still at a very strong 5.0 percent growth rate. Most of the
reconciliation between this 5.0 percent figure and the 2.3 percent real GDP     
number is a slower pace of inventory building and a further deterioration in net
exports, each of which subtracted a percentage point from the reported gross    
domestic product figure. The two most interest rate-sensitive sectors of the    
economy, consumer spending and residential construction, showed the most        
moderation; but the pace of business capital spending actually rose.            

C. PLUNGE IN REFINANCE ACTIVITY STARTING TO HIT CONSUMER SPENDING.              

  Despite a decline from its first quarter pace, consumer spending again grew at
a pace above its long run growth rate during the second quarter. The sharp      
deceleration in certain categories and the second consecutive negative quarterly
reading on the personal savings rate are harbingers of a further slowdown in    
consumer outlays.                                                               
  Gains in real disposable personal income have slowed recently from 4.3 percent
in the fourth quarter to 3.5 in                                                 

--------------------------------------------------------------------------------

This report is not personal investment advice. The information in this report is
obtained from sources believed to be reliable. However, Lyon Street Asset       
Management Company and its affiliates do not guarantee or warrant the accuracy  
or completeness of the information or its use, nor the effects of acting on any 
of the opinions expressed in this report.                                       

2                                                                 

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                                                        ECONOMIC OUTLOOK

the first quarter and only 2.4 percent last quarter. This deceleration reflects 
a slowdown in wage growth and hours worked at the same time oil prices boosted  
consumer prices. Consumer spending far outpaced income growth, however, growing 
at a 5.3 percent annualized pace over the same three quarters. The income       
shortfall has been made up by the personal savings rate falling to zero in the  
fourth quarter, only to be followed by two NEGATIVE readings of 0.7 and 1.1     
percent, respectively, during the first and second quarters of 1999.            

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

        CONSUMER SPENDING*                              
                                     2Q 1999    1Q 1999 
                                                        
Durable Goods                            5.6%      12.9%
Furniture and Household Equipment       10.2%      23.3%
Nondurable Goods                         3.0%       9.5%
Apparel                                  2.5%      29.1%
Services                                 4.2%       4.1%
*Annualized                                             

  Conventional wisdom has attributed the willingness of consumers to move into a
position of dissaving to the recent strong gains in the stock market -- the     
thought being that consumers have felt less of a need to add to their savings   
pool when continued gains in stock prices have boosted their net worth. While we
ascribe to that WEALTH EFFECT theory, we feel the contribution from last year's 
surge in refinance activity may be overlooked, and consequently, the moderating 
influence from the recent plunge in refinance activity may be underestimated.   
Consumers benefit from refinancing their mortgages via monthly interest cost
savings and a one time cashing out on some of their appreciated equity. This    
REAL ESTATE EFFECT on consumer spending definitely helped drive the savings rate
lower and eventually into negative territory. With the nine month-long rise in  
mortgage rates, which have now exceeded eight percent, mortgage refinance       
activity has plunged. In June, the mortgage refinance index was 61.0 percent    
below the average 1998 level. While the drop in refinance activity is already   
having a moderating influence on consumer spending, its negative effect will    
persist through the remainder of this year and could well accelerate as it tends
to work with a six to nine month lag.                                           
  Consumer spending was also aided by the drop in gasoline prices last year, but
that also has been reversed as pump prices have risen thirty percent since      
February. Additionally, the stimulus from rising stock prices is also likely to 
fade. This expectation partly reflects our view that the very rapid common stock
price appreciation of the past few years is behind us and that returns closer   
to, if not slightly below, long run returns are in the offing. We expect the    
personal savings rate to move back into positive territory and a further,       
gradual retrenchment by consumers.                                              

D. HOUSING PAST ITS PEAK AND FURTHER SLOWING AHEAD.                             

The rise in mortgage rates has clearly begun to hit the housing market;     
despite a reported 5.1 percent rise in residential construction outlays during  
the second quarter. Outlays on single-family residences fell at a 2.8 percent   
rate, while multi-family structures dropped 5.0 percent. The entire rise in     
residential outlays was contained in the home improvement category and mobile   
homes.                                                                          
Housing starts dropped 5.6 percent in June to a 1.57 million pace, 13.7     
percent below the 1.82 million peak reached in January. Housing starts for the  
second quarter were down 9.5 percent from the first quarter, further reinforcing
our view that the peak level of activity is behind us. Given the additional rise
in mortgage interest rates in recent weeks, a further general softening in      
housing related activity should occur over the second half of the year.         

E. THE ONGOING INVESTMENT IN PRODUCTIVITY-ENHANCING EQUIPMENT.                  

The ongoing effort to raise productivity by enhancing the hourly output of  
labor resources already employed continues to push expenditures on high         
technology equipment ever higher. Producers' durable equipment outlays were the 
strongest sector in the economy's second quarter growth rate, with virtually all
of the growth coming on high technology equipment.                              
  The rapid and sustained growth in high technology equipment outlays has been a
hallmark of this business expansion. As companies have confronted new           
constraints on their pricing power, managements have targeted labor costs as the
key item to control in an effort to defend and expand profit margins. Providing 
workers with more and better equipment has been one viable solution to raising  
productivity and growing earnings.                                              

                                                                 3

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ECONOMIC OUTLOOK                                                        

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

   BUSINESS CAPITAL SPENDING*                                                  
              1999                                                             
                               PRODUCERS'      HIGH                            
                                 DURABLE    TECHNOLOGY                         
                                EQUIPMENT    EQUIPMENT   COMPUTERS   STRUCTURES
                                                                               
2Q                                   15.3%        34.2%       41.5%       -1.2%
1Q                                    9.5%        26.6%       44.6%        5.7%
*Annualized                                                                    

  As business managers have come to expect that business cycles will last longer
and be less volatile, they have become more confident that capital investments  
will not be ill-timed, i.e., that a downturn in business activity is less likely
to hurt the returns on investments under consideration. Additionally, delivery  
times for equipment, particularly high technology equipment, have dropped       
significantly in recent years; meaning that equipment can be brought on line    
more quickly to help deal with rising demand. Given our outlook for continued   
low inflation and very limited pricing power, we look for companies to continue 
their search for further productivity gains in earnest and for equipment        
spending to remain the strongest sector in the economy.                         

II. A LOOK AHEAD.                                                               

A. EXPANSION TO CONTINUE, GROWTH RATE TO SLOW FURTHER.                          

Our hunch is that the Federal Reserve is tightening monetary policy into an 
already slowing economy from the effects of rising mortgage rates on the housing
industry and on consumer spending through dimished mortgage refinance activity. 
The Federal Reserve is taking out a very appropriate insurance policy to        
increase the likelihood that the current low inflation, low interest rate,      
continued economic growth environment remains in place.                         
 To gain a perspective on the Federal Reserve's move on June 30 to raise short
term interest rates 25 basis points and their warnings that additional increases
could follow, recall that when the federal funds rate was lowered by 75 basis   
points last Fall the Federal Reserve was responding to an extraordinary         
disturbance in the international financial markets. Prior to that financial     
dislocation, the Federal Reserve had maintained a BIAS TO TIGHTEN monetary      
policy from a federal funds rate of 5.50 percent, to achieve the goal of slowing
the U.S. economy to a sustainable pace. We think the Federal Reserve could take 
back all of the 75 basis point reduction in the federal funds rate of last Fall 
without threatening the longevity of the current business expansion. Given the  
current vigor of the U.S. economy, it appears unnecessary for the Federal       
Reserve to maintain the level of short-term interest rates at crisis determined 
levels.                                                                         
  We look for the economy to grow at a pace near 3.0 percent over the next year,
with the possibility of some Year 2000 inventory stockpiling boosting the fourth
quarter real GDP figure and the subsequent inventory drawdown during the first  
quarter artificially depressing that quarter's GDP report. We expect the move to
tighten monetary policy by the Federal Reserve not to exceed last Fall's 75     
basis point easing moves and that the key impetus for slowing the economy's     
growth rate is the rebound in mortgage rates to the eight percent level.        

B. DECLINE MAY BE OVER, BUT NO RESURGENCE IN INFLATION.                         

While the outsized jump in the second quarter employment cost index (ECI)   
might guarantee further tightening moves by the Federal Reserve, the message in 
that report may actually be neutral to positive rather than the initial negative
read. The 1.1 percent second quarter increase followed a record low 0.4 percent 
gain during the first quarter. Averaging the two quarters together shows        
quarterly gains of 0.8 percent -- in line with 1998's pattern. The second       
quarter rise in the ECI was exaggerated by a 3.0 percent jump in labor costs for
the finance, insurance, and, real estate sectors following the first quarter's  
0.7 percent drop.                                                               

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

   INFLATION MEASURES*                                                        
          1999                                                                
                              GROSS        GROSS                    CONSUMER  
                            DOMESTIC     DOMESTIC                 PRICE INDEX 
                             PRODUCT     PURCHASES    CONSUMER     LESS FOOD  
                           PRICE INDEX  PRICE INDEX  PRICE INDEX   AND ENERGY 
                                                                              
2Q                               1.60%        2.10%        2.90%         2.30%
1Q                               1.60%        1.20%        1.50%         0.90%
*Annualized                                                                   

4                                                                 

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                                                        ECONOMIC OUTLOOK

  While the two decade-long DECLINE in the inflation rate may be nearing an end,
we see no reason to fear a significant rekindling of inflationary pressures.    
Certain structural changes in the world economy that have allowed competition to
flourish make any meaningful rise in inflation on a sustained basis virtually   
impossible. Global competition is a reality and there is ample capacity for     
producing the vast majority of items in the world. Nearly all companies view a  
cost issue as a local problem that does not necessarily apply to a competitor in
a different area of the country, or in a different country. Therefore, cost     
issues are a company's own problems, not something that can be passed on to its 
consumers. The result in a widespread corporate focus on cost containment. In   
such a climate, it is difficult to see how a meaningful reemergence of inflation
can occur.                                                                      
As a final comment on the inflation outlook, it is virtually impossible to  
assess the exact impact that the growth in the Internet will have on the way    
business is transacted and how it will alter the outlook for inflation. But     
suffice it to say that the IMPACT WILL BE ENORMOUS AND THE DEFLATIONARY         
INFLUENCE WILL LIKELY BE SIGNIFICANT.                                           
The Internet and the new medium of commerce it facilitates are quickly      
invading all areas of the economy and are providing an exciting new opportunity 
to lower distribution and communication costs further. Transaction costs are    
being reduced as more direct sales take place. Information is spread more       
quickly and widely and, consequently, is used more effectively by management.   
Productivity gains will be squeezed out of a powerful combination of technology,
increased management information, and innovation; bringing about heretofore     
unthought of ways to lower the cost structure of doing business on an ongoing   
basis. These lower costs will continue to put downward pressure on prices for a 
wide array of services and goods, helping to keep inflationary pressures at bay.

JOSEPH T. KEATING                                                               
President and Chief Investment Officer                                          

THE INFORMATION CONTAINED HEREIN IS BASED ON UNITED STATES DEPARTMENT OF        
COMMERCE DATA RELEASED JULY 29, 1999.                                           

                                                                 5

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT GROWTH AND INCOME FUND                                                     
BY ALLAN J. MEYERS                                                              
PORTFOLIO MANAGER                                                               

  The six months ended June 30, 1999, were characterized by strong growth in the
U.S. economy. Those conditions supported basic-materials and cyclical stocks,   
which previously had been beaten down. As a result, value stocks performed      
exceptionally well in April, and in May the Dow Jones Industrial Average(1)     
reached 11,000 for the first time. Some investors worried about a potential     
resurgence in inflation, but those fears abated in June when the Federal Reserve
Board raised the federal funds rate by 25 basis points.                         

For the six months ended June 30, 1999, the Fund's Institutional and        
Investment Shares returned 11.38% and 11.28%, respectively. The Fund's          
benchmark, the Standard & Poor's 500 Stock Index, returned 12.38% for the same  
period.                                                                         

STRONG RESULTS FOR VALUE STOCKS                                                 

 The best-performing sector during the period was technology (up 24.8% for the
period), with large companies such as IBM (2.35% of the portfolio), up 40.5%,   
Cisco Systems (1.86%), up 38.9%, and Microsoft (4.01%), up 30%, leading the     
top-performing stock list. Investors also found attractive valuations in the    
basic materials sector (up 21.8%). Meanwhile, healthcare (down 0.9% for the     
period) and utilities (up 1.0%) lagged the market by wide margins.*             

  We increased the Fund's exposure to value stocks by purchasing shares of firms
such as BF Goodrich (0.06%), Spring Industries (0.05%), Conseco (0.13%), Cendant
(0.15%) and Schlumberger (0.25%). We sold the Fund's positions in some          
large-company growth stocks, including shares of American Greetings, EGG,       
Hershey Foods and Airtouch Communications.*                                     

--------------------------------------------------                              

KENT GROWTH AND INCOME FUND                                                     
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                                  
Capital Goods                 8.5%
Consumer Staples             12.4%
Utilities                     2.7%
Consumer Cyclicals            9.1%
Communication Services        8.6%
Energy                        6.1%
Transportation                0.9%
Basic Materials               3.2%
Health                       10.9%
Financials                   15.9%
Technology                   21.7%

---------------------------------------------------------------                 

LOOKING AHEAD                                                                   

The Growth and Income Fund is a well-diversified fund, with investments in  
approximately 249 companies. Going forward, we believe investors will continue  
to look for bargains in the value sector of the market, but that growth stocks  
with good earnings will continue to perform well also. We believe the Fund is   
well-positioned to benefit from this investor orientation, and our research     
continues to identify excellent prospects based on earnings growth potential and
stock valuations.                                                               

--------------------------------------------------------------------------------

1 The Dow Jones Industrial Average is a price-weighted average based on the     
price movements of 30 blue-chip stocks.                                         

*The Fund's portfolio composition is subject to change.                       

6                                                                               

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KENT GROWTH AND INCOME FUND                                                     
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 11/2/92)  (inception: 12/1/92)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 11.38%                11.28%       
-------------------------------------------------------------------------------
One Year                                    22.31%                22.07%       
-------------------------------------------------------------------------------
Three Years                                 24.78%                24.46%       
-------------------------------------------------------------------------------
Five Years                                  24.69%                24.25%       
-------------------------------------------------------------------------------
Life of Fund                                19.81%                19.28%       
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
                        AS COMPARED WITH THE STANDARD & POOR'S 500 STOCK INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

             KENT GROWTH AND INCOME                         
            FUND INSTITUTIONAL CLASS  STANDARD & POOR'S 500 
                     SHARES                STOCK INDEX      
                                                            
11/2/92                       10,000                  10,000
12/31/92                      10,398                  10,472
12/31/93                      11,610                  11,518
12/31/94                      11,669                  11,669
12/31/95                      15,743                  16,036
12/31/96                      18,809                  19,737
12/31/97                      23,351                  26,321
12/31/98                      29,907                  33,886
6/30/99                       33,310                  38,081

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

             KENT GROWTH AND INCOME                         
             FUND INVESTMENT CLASS    STANDARD & POOR'S 500 
                     SHARES                STOCK INDEX      
                                                            
12/1/92                       10,000                  10,000
12/31/92                      10,059                  10,472
12/31/93                      11,247                  11,518
12/31/94                      11,302                  11,669
12/31/95                      15,213                  16,036
12/31/96                      18,124                  19,737
12/31/97                      22,454                  26,321
12/31/98                      28,666                  33,886
6/30/99                       31,898                  36,840

--------------------------------------------------------------------------------

The Fund's performance is measured against the Standard & Poor's 500 Stock    
 Index, which is an unmanaged index that generally represents the performance of
the U.S. stock market as a whole. The index is unmanaged and does not reflect 
the deduction of fees associated with a mutual fund, such as investment       
management and fund accounting fees. The performance of the Fund does reflect 
the deduction of fees for these value-added services.                         

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The investment return and 
principal value will fluctuate, so that shares, when redeemed, may be worth   
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                               7

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT SMALL COMPANY GROWTH FUND+                                                 
BY ROB CUMMISFORD                                                               
PORTFOLIO MANAGER                                                               

 The six months ended June 30, 1999, were good for small-company stocks, which
began the period trading at very attractive valuations. During the second       
quarter alone, the Russell 2000 Index of small-cap stocks outpaced the Standard 
& Poor's 500 Stock Index(1) of blue-chip stocks by more than eight percentage   
points. The best performing sectors for the six-month period included           
communication services (up 33%) and energy (up 32.1%). Health-care (down 0.9%)  
and utilities (down 0.5%) were among the worst performers.*                     

For the six months ended June 30, 1999, the Fund's Institutional and        
Investment Shares returned 9.97% and 9.89%, respectively. Over the same period, 
the Russell 2000 Index returned 9.28%.                                          

SMALL-CAP VALUE STOCKS LEAD THE WAY                                             

Small-cap value stocks attracted many investors during the second quarter,  
boosting the Fund's performance. Small-company shares benefited from merger and 
acquisition activity and unexpectedly strong earnings growth.                   

  The Fund slightly outperformed its benchmark, the Russell 2000, largely due to
the Fund's weighting in communication services as well as energy, where rising  
oil prices helped drive share prices higher. The top-performing stocks in the   
Fund included Western Wireless (0.38% of the portfolio), up 128.1%, which       
provides wireless communications to the western United States, and Cross Timbers
Oil Company (0.18%), which was up 99% for the first half of 1999. The stocks in 
the Fund have an average market capitalization of approximately $1,080 million, 
which is slightly larger than the average market cap of the stocks that compose 
the Russell 2000 ($730 million) after it was re-balanced on June 30.*           

--------------------------------------------------                              

KENT SMALL COMPANY GROWTH FUND                                                  
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                                  
Communication Services        1.7%
Consumer Staples              4.4%
Utilities                     5.0%
Consumer Cyclicals           19.0%
Transportation                1.8%
Energy                        2.7%
Capital Goods                11.2%
Basic Materials               3.5%
Healthcare                   10.7%
Financials                   18.9%
Technology                   21.1%

---------------------------------------------------------------                 

GOING FORWARD                                                                   

We believe that investors will continue to find the valuations of small     
company shares attractive during the coming months. We will look for            
opportunities in undervalued sectors such healthcare, technology and            
communications services where the companies are poised to deliver significant   
earnings growth. Meanwhile, we believe that the Fund is positioned to take      
advantage of a market that favors small-company shares and value stocks.        

--------------------------------------------------------------------------------

+Small-capitalization funds typically carry additional risks, since smaller   
 companies generally have a higher risk of failure and, by definition, are not
  as well established as "blue-chip" companies. Historically, smaller companies'
stock has experienced a greater degree of market volatility than average.   

1 The Standard & Poor's 500 Stock Index is an unmanaged index that generally    
represents the performance of the U.S. stock market as a whole.                 

*The Fund's portfolio composition is subject to change.                       

8                                                                               

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KENT SMALL COMPANY GROWTH FUND                                                  
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 11/2/92)  (inception: 12/4/92)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 9.97%                 9.89%        
-------------------------------------------------------------------------------
One Year                                    -1.06%                -1.24%       
-------------------------------------------------------------------------------
Three Years                                 11.87%                11.62%       
-------------------------------------------------------------------------------
Five Years                                  15.05%                14.82%       
-------------------------------------------------------------------------------
Life of Fund                                14.65%                13.52%       
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
                                       AS COMPARED WITH THE RUSSELL 2000 INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

                KENT SMALL COMPANY GROWTH     RUSSELL 2000 INDEX
                 FUND INSTITUTIONAL CLASS                       
                          SHARES                                
                                                                
11/2/1992                             10,000              10,000
12/31/1992                            10,885              11,140
12/31/1993                            12,729              13,246
12/31/1994                            12,722              13,005
12/31/1995                            15,745              16,704
12/31/1996                            18,825              19,466
12/31/1997                            24,085              23,819
12/31/1998                            22,600              23,212
6/30/1999                             24,851              25,366

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

               KENT SMALL COMPANY GROWTH    RUSSELL 2000 INDEX
              FUND INVESTMENT CLASS SHARES                    
                                                              
12/4/1992                           10,000              10,000
12/31/1992                          10,197              10,348
12/31/1993                          11,915              12,304
12/31/1994                          11,906              12,080
12/31/1995                          14,702              15,516
12/31/1996                          17,518              18,081
12/31/1997                          22,372              22,124
12/31/1998                          20,937              21,560
6/30/1999                           23,008              23,561

--------------------------------------------------------------------------------

The Fund's performance is measured against the Russell 2000 Index, which is an
unmanaged index that represents the performance of domestically traded common 
stocks of small to mid-sized companies. The index is unmanaged and does not   
 reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Fund does reflect 
the deduction of fees for these value-added services.                         

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The investment return and 
principal value will fluctuate, so that shares, when redeemed, may be worth   
more or less than the original cost. Performance of each class will differ    
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                               9

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT INTERNATIONAL GROWTH FUND+                                                 
BY DAVE EDER                                                                    
PORTFOLIO MANAGER                                                               

The Kent International Growth Fund outperformed the Morgan Stanley Capital  
International Europe, Australia and Far East (MSCI EAFE) Index during the       
six-month period ended June 30, 1999. The Fund's Institutional and Investment   
shares returned 5.08% and 4.92%, respectively, during the period while the EAFE 
Index returned 4.11%.                                                           

ASIA RECOVERS, EUROPE SLUMPS                                                    

The Fund invests in stocks from individual countries based on the countries'
relative gross domestic products. During the six-month period, the Fund remained
overweighted in the Pacific Rim (35.5% of the portfolio) relative to the EAFE,  
while exposure to European shares (64.5%) was slightly underweight relative to  
the index.                                                                      

  Asian markets performed exceptionally well during the period, after falling to
record lows last autumn. We began adding to the Fund's position in the Pacific  
Rim during the fourth quarter of 1998, which benefited the Fund greatly. The    
MSCI Pacific Index rose 21.8% during the six-month period ended June 30, 1999.  
The recovery in that region was driven by strong gross domestic product numbers 
for Japan. Investors found opportunities in markets such as Malaysia (up 73.2%  
for the period) and Singapore (up 60.4%), where stock valuations were very      
attractive. During the period, we decreased slightly the Fund's holdings in     
Japan, yet remained overweight relative to the EAFE.*                           

  European markets performed poorly as the euro fell 10% against the U.S. dollar
over the six-month period. Weak economic growth and concerns about the Kosovo   
crisis hurt equity markets' performance in the region. The MSCI Europe Index    
fell 2.4% during the first half of 1999, as investors fled countries such as    
Belgium (down 19.4% for the period) and Portugal (down 18.1%). Nonetheless,     
markets such as Sweden (up 19.5% for the period) and Finland (up 28.5%) were    
strong performers. During the period, we boosted the Fund's position in France  
from 8.1% to 9.4% of the Fund's portfolio and trimmed the Fund's weighting in   
Switzerland from 7.1% to 6.2%.*                                                 

--------------------------------------------------                              

KENT INTERNATIONAL GROWTH FUND                                                  
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                           
Japan                 26.7%
United Kingdom        19.8%
Germany                9.5%
France                 9.4%
Switzerland            6.7%
Netherlands            5.4%
Italy                  3.7%
Spain                  3.0%
Australia              4.0%
Hong Kong              2.5%
Denmark                0.8%
Other                  3.9%
Sweden                 2.3%
Belgium                1.3%
Finland                1.5%

---------------------------------------------------------------                 

GROWTH EXPECTED IN OVERSEAS MARKETS                                             

The Kent International Growth Fund remains a well-diversified fund, with    
investments in 767 securities as of June 30, 1999. We aim to reduce risk by     
maintaining a balanced portfolio in each country in which the Fund invests. We  
believe that Asia will continue to recover as economies in Japan, China and Hong
Kong grow. In Europe, the weak euro may allow the region's exporters to sell    
their goods to the U.S. at lower prices, which should help boost European       
economies.*                                                                     

--------------------------------------------------------------------------------

+International investing involves increased risk and volatility.              

*The Fund's portfolio composition is subject to change.                       

10                                                                              

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KENT INTERNATIONAL GROWTH FUND                                                  
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 12/4/92)  (inception: 12/4/92)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 5.08%                 4.92%        
-------------------------------------------------------------------------------
One Year                                    8.38%                 8.02%        
-------------------------------------------------------------------------------
Three Years                                 8.72%                 8.44%        
-------------------------------------------------------------------------------
Five Years                                  8.83%                 8.57%        
-------------------------------------------------------------------------------
Life of Fund                                11.95%                11.65%       
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
      AS COMPARED WITH THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI) EUROPE,
                                                 AUSTRALIA AND FAR EAST INDEX,
                           AND THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI)
                                                              EUROPE INDEX AND
                               THE MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI)
                                                             PACIFIC RIM INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

           KENT INTERNATIONAL              MSCI               MSCI         MSCI    
              GROWTH FUND                 EUROPE,            EUROPE    PACIFIC RIM 
          INSTITUTIONAL CLASS     AUSTRALIA AND FAR EAST                           
                 SHARES                    INDEX              INDEX       INDEX    
                                                                                   
12/4/92                   10,000                     10,000    10,000        10,000
12/31/92                  10,020                     10,054    10,233         9,887
12/31/93                  13,045                     13,367    13,282        13,444
12/31/94                  13,794                     14,444    13,626        15,195
12/31/95                  15,591                     16,113    16,653        15,650
12/31/96                  16,507                     17,138    20,246        14,335
12/31/97                  16,926                     17,443    25,063        10,681
12/31/98                  19,976                     20,989    32,213        10,942
6/30/99                   20,991                     21,852    31,482        13,344

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

              KENT INTERNATIONAL           MSCI           MSCI         MSCI    
                 GROWTH FUND        EUROPE, AUSTRALIA    EUROPE    PACIFIC RIM 
               INVESTMENT CLASS                                                
                    SHARES          AND FAR EAST INDEX    INDEX       INDEX    
                                                                               
12/4/92                     10,000              10,000     10,000        10,000
12/31/92                    10,010              10,054     10,233         9,887
12/31/93                    13,006              13,367     13,282        13,444
12/31/94                    13,723              14,444     13,626        15,195
12/31/95                    15,487              16,113     16,653        15,650
12/31/96                    16,350              17,138     20,246        14,335
12/31/97                    16,719              17,443     25,063        10,681
12/31/98                    19,661              20,989     32,213        10,942
6/30/99                     20,627              21,852     31,482        13,344

--------------------------------------------------------------------------------

The Fund's performance is measured against the Morgan Stanley Capital         
International Europe, Australia and Far East Index (EAFE), which is an        
unmanaged index that is comprised of a sample of companies representative of  
the market structure of 20 European and Pacific Basin countries. The Morgan   
Stanley Capital International Europe Index and the Morgan Stanley Capital     
International Pacific Rim Index are unmanaged indices of stocks in their      
respective regions. Investors are reminded that, while investing globally can 
be rewarding, investments in foreign securities involve certain risks and     
considerations in addition to those inherent with investing in U.S. companies,
such as currency fluctuations and political instability. The indices are      
unmanaged and do not reflect the deduction of fees associated with a mutual   
fund, such as investment management and fund accounting fees. The performance 
of the Fund does reflect the deduction of fees for these value-added services.

 The Morgan Stanley Capital International (MSCI) indices measure performance for
 a diverse range of developed-country global stock markets, including the United
 States, Canada, Europe, Australia, New Zealand and the Far East. The foundation
of the various MSCI indices is the database of approximately 1,500 companies  
listed on the stock exchanges of the 24 countries for which there are MSCI    
national indices. The indices are capitalization weighted. Furthermore,       
companies included in the indices replicate the industry composition of each  
local market and, in addition, represent samplings of large-, medium- and     
small-capitalization companies from each local market, taking into account the
stocks' liquidity.                                                            

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The investment return and 
principal value will fluctuate, so that shares, when redeemed, may be worth   
more or less than the original cost. Performance of each class will differ    
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              11

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT INDEX EQUITY FUND                                                          
BY BRIAN SMOLINSKI                                                              
PORTFOLIO MANAGER                                                               

The six-month period ended June 30, 1999, was characterized by strong       
performance in the U.S. stock market as the Dow Jones Industrial Average passed 
the 11,000 mark in May. Undervalued stocks became dominant drivers of the market
after many quarters of disappointing performance, with small-company, cyclical  
and other value stocks surging during the second quarter. Signs of inflation    
prompted the Federal Reserve to raise the federal funds rate by 25 basis points 
in June.                                                                        

  The Institutional and Investment shares of the Kent Index Equity Fund returned
12.23% and 12.09%, respectively, for the six months ended June 30, 1999. The    
Standard & Poor's 500 Stock Index returned 12.38% during the same period. The   
best performing sectors during the six-month period were technology (up 24.8%)  
and basic materials (up 21.8%). LSI Logic (0.06% of the portfolio), a firm that 
makes circuits and semiconductors for electronic goods, led the best-performing 
companies (up 186% for the period), followed by telecommunications giant Sprint 
Corp. (0.22%), up 147%.*                                                        

The Kent Index Equity Fund seeks to replicate the performance of the S&P 500
Index. Despite the recent strong performances by small caps and value-oriented  
shares, we believe that the large-company shares that make up the index will    
continue to perform well due to continued economic growth and modest inflation. 

--------------------------------------------------                              

KENT INDEX EQUITY FUND                                                          
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                                  
Communication Services        8.4%
Consumer Staples             13.6%
Utilities                     2.6%
Capital Goods                 8.0%
Transportation                0.9%
Energy                        5.6%
Consumer Cyclicals            9.2%
Basic Materials               3.0%
Health                       12.0%
Financials                   16.1%
Technology                   20.6%

---------------------------------------------------------------                 

--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                       

12                                                                              

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KENT INDEX EQUITY FUND                                                          
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                            INSTITUTIONAL CLASS     INVESTMENT CLASS   
                           (inception: 11/2/92)   (inception: 11/25/92)
                                                                       
-----------------------------------------------------------------------
Six Months*                       12.23%                 12.09%        
-----------------------------------------------------------------------
One Year                          22.49%                 22.17%        
-----------------------------------------------------------------------
Three Years                       28.55%                 28.21%        
-----------------------------------------------------------------------
Five Years                        27.14%                 26.85%        
-----------------------------------------------------------------------
Life of Fund                      21.46%                 20.99%        
-----------------------------------------------------------------------
*Aggregate Return                                                      

GROWTH OF A $10,000 INVESTMENT                                                  
                        AS COMPARED WITH THE STANDARD & POOR'S 500 STOCK INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

             KENT INDEX EQUITY FUND    STANDARD & POOR'S 500 
               INSTITUTIONAL CLASS                           
                     SHARES                 STOCK INDEX      
                                                             
11/2/92                        10,000                  10,000
12/31/92                       10,440                  10,472
12/31/93                       11,390                  11,518
12/31/94                       11,488                  11,669
12/31/95                       15,648                  16,036
12/31/96                       19,119                  19,737
12/31/97                       25,342                  26,321
12/31/98                       32,503                  33,886
6/30/99                        36,479                  38,081

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

            KENT INDEX EQUITY FUND   STANDARD & POOR'S 500 
            INVESTMENT CLASS SHARES       STOCK INDEX      
                                                           
11/25/92                     10,000                  10,000
12/31/92                     10,185                  10,472
12/31/93                     11,111                  11,518
12/31/94                     11,194                  11,669
12/31/95                     15,199                  16,036
12/31/96                     18,531                  19,737
12/31/97                     24,505                  26,321
12/31/98                     31,347                  33,886
6/30/99                      35,137                  36,840

--------------------------------------------------------------------------------

The Fund's performance is measured against the Standard & Poor's 500 Stock    
 Index, which is an unmanaged index that generally represents the performance of
the U.S. stock market as a whole. The index is unmanaged and does not reflect 
the deduction of fees associated with a mutual fund, such as investment       
management and fund accounting fees. The performance of the Fund does reflect 
the deduction of fees for these value-added services.                         

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. The investment return 
 and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              13

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT SHORT TERM BOND FUND                                                       
BY MITCHELL STAPLEY                                                             
PORTFOLIO MANAGER                                                               

  Yields on short-term bonds rose throughout the six-month period ended June 30,
1999. Investors worried that the economy's strong growth rate and rising oil    
prices would lead to inflation, forcing the Federal Reserve Board (the Fed) to  
aggressively raise interest rates. Those fears caused the yield on two-year     
Treasury notes to rise from 4.58% at the beginning of the period to 5.50% at the
end. The Fed did raise rates by 25 basis points in late June, but that was a    
smaller increase than many investors had feared.                                

During the six-months ended June 30, 1999, the Fund's Institutional and     
Investment Shares posted total returns of 0.89% and 0.81%, respectively. That   
compared to a 5.05% return for the Fund's benchmark, the Lehman Brothers        
1-to-3-Year Government Bond Index.                                              

VALUE IN HIGH-QUALITY CORPORATE SECURITIES                                      

During the period, we found attractive investment opportunities in          
high-quality securities issued by corporations. Such issues offered higher      
yields than comparable Treasury securities and should provide shareholders with 
good performance and stability of principal going forward. As a result of that  
strategy, the Fund's allocation to corporate securities increased from 57% at   
the beginning of the period to 67% at the end.*                                 

We extended the Fund's average maturity somewhat, from 2.1 years at the     
beginning of the period to 2.2 years at the end of the period. That extension   
reflected our strategy of locking in the higher yields available on longer      
issues. We maintained a high average credit rating of AA2.*                     

--------------------------------------------------                              

KENT SHORT TERM BOND FUND                                                       
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                              
Cash Equivalents              
Net Other Assets              
& Liabilities             3.4%
Corporate Notes               
& Bonds                  63.6%
U.S. Government &             
Agency Issues            33.0%

---------------------------------------------------------------                 

KENT SHORT TERM BOND FUND                                                       
SEC 30-DAY YIELDS                                                               
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                    
Institutional Class.....................................       5.40%
Investment Class........................................       5.25%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 5.39% for Institutional Shares and 5.14% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

LOOKING AHEAD                                                                   

We expect yields to fall going forward, as the Federal Reserve's recent rate
increase and the eight-month-long rise in mortgage rates slow the economy and   
hold off inflation. We already have seen a slowdown in housing starts and       
mortgage refinancings, indicating that the rise in mortgage rates has begun to  
take effect. The Fund's relatively long average maturity and high credit rating 
position it well for an environment of slower economic growth and falling       
interest rates.                                                                 

--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                       

14                                                                              

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KENT SHORT TERM BOND FUND                                                       
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 11/2/92)  (inception: 12/4/92)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 0.89%                 0.81%        
-------------------------------------------------------------------------------
One Year                                    4.22%                 4.08%        
-------------------------------------------------------------------------------
Three Years                                 5.62%                 5.47%        
-------------------------------------------------------------------------------
Five Years                                  5.75%                 5.60%        
-------------------------------------------------------------------------------
Life of Fund                                4.94%                 4.80%        
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
          AS COMPARED WITH THE LEHMAN BROTHERS 1-3-YEAR GOVERNMENT BOND INDEX,
                         THE CONSUMER PRICE INDEX AND THE 91-DAY TREASURY BILL

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                        [Enlarge/Download Table]

            KENT SHORT TERM       THE LEHMAN BROTHERS 1-3-YEAR   CONSUMER PRICE INDEX      91-DAY    
               BOND FUND              GOVERNMENT BOND INDEX                             TREASURY BILL
          INSTITUTIONAL CLASS                                                                        
                 SHARES                                                                              
                                                                                                     
11/2/92                   10,000                         10,000                 10,000         10,000
12/31/92                  10,087                         10,078                 10,007         10,052
12/31/93                  10,395                         10,621                 10,282         10,362
12/31/94                  10,502                         10,675                 10,557         10,802
12/31/95                  11,608                         11,832                 10,825         11,423
12/31/96                  12,098                         12,430                 11,185         12,023
12/31/97                  12,875                         13,626                 11,375         12,655
12/31/98                  13,663                         14,517                 11,559         13,295
6/30/99                   13,784                         15,250                 11,721         13,593

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                        [Enlarge/Download Table]

          KENT SHORT TERM      THE LEHMAN BROTHERS 1-3-YEAR   CONSUMER PRICE INDEX      91-DAY    
             BOND FUND             GOVERNMENT BOND INDEX                             TREASURY BILL
          INVESTMENT CLASS                                                                        
               SHARES                                                                             
                                                                                                  
12/4/92                10,000                         10,000                 10,000         10,000
12/31/92               10,030                         10,078                  9,993         10,027
12/31/93               10,335                         10,621                 10,268         10,336
12/31/94               10,439                         10,675                 10,542         10,775
12/31/95               11,514                         11,832                 10,810         11,395
12/31/96               11,982                         12,430                 11,169         11,993
12/31/97               12,732                         13,626                 11,359         12,623
12/31/98               13,495                         14,517                 11,542         13,262
6/30/99                13,605                         15,274                 11,704         13,559

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers 1-3-Year       
Government Bond Index, which is an unmanaged index comprised of U.S. Treasury 
issues and publicly issued debt of U.S. Government agencies with maturities of
one to three years. The index is unmanaged and does not reflect the deduction 
of fees associated with a mutual fund, such as investment management and fund 
 accounting fees. The performance of the Fund does reflect the deduction of fees
for these value-added services.                                               

The 91-day Treasury bill return tracks the investment returns paid on U.S.    
Treasury bills maturing in 91 days.                                           

The Consumer Price Index is an unmanaged index measuring price increases in a 
standardized "market basket" of consumer products. Total return is based on   
changes in net asset value, assuming reinvestment of all dividends and capital
gains distributions.                                                          

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. The investment return 
 and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              15

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT INTERMEDIATE BOND FUND                                                     
BY MITCHELL STAPLEY                                                             
PORTFOLIO MANAGER                                                               

Yields on intermediate-term bonds rose dramatically during the six-month    
period ended June 30, 1999. Investors feared that a strong economy and rising   
oil prices would lead to an increase in inflation, forcing the Federal Reserve  
Board (the Fed) to raise interest rates. Those fears pushed up the yield on the 
10-year Treasury from 4.65% at the beginning of the period to 5.78% at the end  
of the period. The Fed did raise rates by 25 basis points in late June, but that
increase was smaller than many investors had feared.                            

The Intermediate Bond Fund's relatively long average maturity hampered      
performance during the period. That long average maturity allowed the Fund to   
offer an attractive dividend yield, however. The return on the Fund's           
Institutional and Investment Shares was -1.68% and -1.70%, respectively, during 
the six months ended June 30, 1999. That compared to a -0.58% return for the    
Fund's benchmark, the Lehman Brothers Intermediate Government/Corporate Bond    
Index.                                                                          

EXTENDING AVERAGE MATURITY                                                      

  We bought securities with relatively long maturities during the period to lock
in the higher yield that those issues offered. We found many such opportunities 
in the second half of the period, as yields on intermediate-term bonds rose     
higher than 5.5%. That strategy increased the Fund's average maturity from 5.5  
years at the beginning of the period to 6.2 years at the end of the period.     

  We increased the Fund's weighting in corporate bonds from 35% of assets at the
beginning of the period to 40% at the end. That increase reflected the          
attractive opportunities we found in bonds issued by high-quality companies     
including regional banks, automakers and oil and gas firms. The Fund's average  
credit rating remained high at AA1, down somewhat from AAA at the beginning of  
the period. That slight decline reflected the increase in corporate bonds in the
portfolio.*                                                                     

--------------------------------------------------                              

KENT INTERMEDIATE BOND FUND                                                     
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                              
Cash Equivalents              
Net Other Assets              
& Liabilities             2.3%
Corporate Notes               
& Bonds                  34.9%
U.S. Government &             
Agency Issues            62.8%

---------------------------------------------------------------                 

KENT INTERMEDIATE BOND FUND                                                     
SEC 30-DAY YIELDS                                                               
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                    
Institutional Class.....................................       5.72%
Investment Class........................................       5.46%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 5.71% for Institutional Shares and 5.45% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

LOOKING AHEAD                                                                   

  We expect yields to decline going forward. We have already seen signs that the
eight-month-long rise in mortgage rates is slowing the economy. For example,    
housing starts and mortgage refinancings have lost momentum significantly.      
Slowing economic activity should prevent inflation from increasing, allowing the
Federal Reserve to refrain from aggressively raising rates. We believe that our 
recent strategy of extending the Fund's average maturity and investing in       
high-quality corporate bonds has positioned the Fund to perform well in an      
environment of slower economic growth and falling yields.                       

--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                       

16                                                                              

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KENT INTERMEDIATE BOND FUND                                                     
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                                               (inception:     
                                     (inception: 11/2/92)       11/25/92)      
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 -1.68%                -1.70%       
-------------------------------------------------------------------------------
One Year                                    2.28%                 2.14%        
-------------------------------------------------------------------------------
Three Years                                 5.94%                 5.71%        
-------------------------------------------------------------------------------
Five Years                                  6.52%                 6.30%        
-------------------------------------------------------------------------------
Life of Fund                                5.69%                 5.46%        
-------------------------------------------------------------------------------
*Aggregate Returns                                                             

GROWTH OF A $10,000 INVESTMENT                                                  
   AS COMPARED WITH THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND
                                                                         INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

               KENT INTERMEDIATE      THE LEHMAN BROTHERS INTERMEDIATE 
                   BOND FUND                GOVERNMENT/CORPORATE       
              INSTITUTIONAL CLASS                                      
                     SHARES                      BOND INDEX            
                                                                       
11/2/92                       10,000                             10,000
12/31/92                      10,125                             10,095
12/31/93                      10,934                             10,976
12/31/94                      10,585                             10,762
12/31/95                      12,298                             12,410
12/31/96                      12,667                             12,913
12/31/97                      13,655                             13,929
12/31/98                      14,699                             15,105
6/30/99                       14,452                             15,017

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

              KENT INTERMEDIATE     THE LEHMAN BROTHERS INTERMEDIATE 
                  BOND FUND               GOVERNMENT/CORPORATE       
               INVESTMENT CLASS                                      
                    SHARES                     BOND INDEX            
                                                                     
11/25/92                    10,000                             10,000
12/31/92                    10,050                             10,134
12/31/93                    10,873                             11,018
12/31/94                    10,545                             10,803
12/31/95                    12,207                             12,457
12/31/96                    12,544                             12,962
12/31/97                    13,500                             13,982
12/31/98                    14,448                             15,162
6/30/99                     14,203                             15,074

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers Intermediate   
Government/Corporate Bond Index, which is an unmanaged index comprised of U.S.
Treasury issues, publicly issued debt of U.S. Government agencies, corporate  
debt guaranteed by the U.S. Government and all publicly issued, fixed-rate,   
nonconvertible, investment-grade, dollar-denominated, SEC-registered corporate
debt. The index is unmanaged and does not reflect the deduction of fees       
associated with a mutual fund, such as investment management and fund         
 accounting fees. The performance of the Fund does reflect the deduction of fees
for these value-added services.                                               

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The investment return and 
principal value will fluctuate, so that shares, when redeemed, may be worth   
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              17

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT INCOME FUND                                                                
BY MITCHELL STAPLEY                                                             
PORTFOLIO MANAGER                                                               

  Yields on long-term bonds increased throughout the six-month period ended June
30, 1999, as investors sold bonds due to fears of rising inflation. Those       
concerns were driven by strong domestic growth and rising oil prices. The       
Federal Reserve Board responded to signs of inflation by raising the federal    
funds rate by 25 basis points in late June. A heavy supply of corporate         
securities caused their yields to rise even more than yields on Treasury        
securities. The yield on the 30-year Treasury began the period at 5.10% and     
finished the period at 5.97%.                                                   

The Fund's Institutional and Investment Shares posted returns of -3.62% and 
-3.75%, respectively, for the six months ended June 30, 1999. That compares to a
-5.95% return for the Lehman Brothers Long Government/Corporate Bond Index. The 
Fund's relatively long average maturity hurt its performance during the period. 

EXTENDING AVERAGE MATURITY                                                      

 During the second half of the period, we extended the Fund's average maturity
to take advantage of the higher yields offered by longer dated issues. That     
strategy allowed us to increase the Fund's dividend yield. The Fund began the   
period with an average maturity of 10.8 years and ended the period with an      
average maturity of 11.5 years.                                                 

The rise in yields throughout the period led to good buying opportunities   
among high-quality corporate bonds. In particular, we bought securities issued  
by regional banks, automakers and oil and gas producers. We concentrated on     
bonds issued by high-quality companies that we felt would hold up well in an    
economic downturn. That high-quality approach improved the Fund's credit rating 
from AA2 to AA1 during the period.                                              

--------------------------------------------------                              

KENT INCOME FUND                                                                
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                              
Cash Equivalents              
Net Other Assets              
& Liabilities             0.7%
Corporate Notes               
& Bonds                  48.3%
U.S. Government &             
Agency Issues            51.0%

---------------------------------------------------------------                 

KENT INCOME FUND                                                                
SEC 30-DAY YIELD                                                                
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                   
Institutional Class....................................       6.14%
Investment Class.......................................       5.89%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 6.13% for Institutional Shares and 5.88% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

GOING FORWARD                                                                   

We expect yields to decrease over the coming months. We already are seeing  
signs that the eight-month-long rise in mortgage rates is slowing the economy;  
for example, new housing starts and mortgage refinancings have decreased. Such  
signs indicate a slowing economy, which would make an increase in inflation less
likely. We believe that our strategy during the past three months of buying     
high-quality corporate bonds with relatively long maturities has positioned the 
Fund well for an environment of slower growth and falling interest rates.*      

--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                       

18                                                                              

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KENT INCOME FUND                                                                
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 3/20/95)  (inception: 3/22/95)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 -3.62%                -3.75%       
-------------------------------------------------------------------------------
One Year                                    1.14%                 0.89%        
-------------------------------------------------------------------------------
Three Years                                 7.08%                 6.87%        
-------------------------------------------------------------------------------
Life of Fund                                7.35%                 7.08%        
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
          AS COMPARED WITH THE LEHMAN BROTHERS GOVERNMENT/CORPORATE BOND INDEX
                  AND THE LEHMAN BROTHERS LONG GOVERNMENT/CORPORATE BOND INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

            KENT INCOME FUND      THE LEHMAN BROTHERS    THE LEHMAN BROTHERS LONG 
          INSTITUTIONAL CLASS                                                     
                 SHARES           GOVERNMENT/CORPORATE     GOVERNMENT/CORPORATE   
                                       BOND INDEX               BOND INDEX        
                                                                                  
3/20/95                   10,000                 10,000                     10,000
12/31/95                  11,506                 11,358                     12,190
12/31/96                  11,643                 11,688                     12,207
12/31/97                  12,828                 12,871                     13,979
12/31/98                  14,063                 14,043                     15,624
6/30/99                   13,553                 13,723                     14,694

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

          KENT INCOME FUND     THE LEHMAN BROTHERS    THE LEHMAN BROTHERS LONG 
          INVESTMENT CLASS                                                     
               SHARES          GOVERNMENT/CORPORATE     GOVERNMENT/CORPORATE   
                                    BOND INDEX               BOND INDEX        
                                                                               
3/22/95                10,000                 10,000                     10,000
12/31/95               11,464                 11,358                     12,190
12/31/96               11,597                 11,688                     12,207
12/31/97               12,779                 12,871                     13,979
12/31/98               13,933                 14,043                     15,624
6/30/99                13,411                 13,723                     14,694

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers                
Government/Corporate Bond Index and Lehman Brothers Long Government/Corporate 
Bond Index which are unmanaged indices comprised of U.S. Treasury issues, debt
of U.S. Government agencies, corporate debt guaranteed by the U.S. Government 
and all publicly issued, fixed-rate, nonconvertible investment-grade,         
dollar-denominated, SEC-registered corporate debt. The indices do not reflect 
the deduction of fees associated with a mutual fund, such as investment       
management and fund accounting fees. The performance of the Fund does reflect 
the deduction of fees for these value-added services.                         

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. The investment return 
 and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              19

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT INTERMEDIATE TAX-FREE FUND+                                                
BY MICHAEL MARTIN                                                               
PORTFOLIO MANAGER                                                               

  The six-month period ended June 30, 1999, was characterized by rising interest
rates across the bond market. The increase in interest rates was brought on by  
concerns that stronger-than-expected economic growth in the United States and   
strengthening foreign economies would send inflation higher and force the       
Federal Reserve to boost short-term rates. In fact, the Fed did raise rates at  
the end of June in an effort to ward off any inflationary pressures.            
Intermediate-term municipal securities outperformed comparable Treasury     
securities during the period. The yield on the 10-year AAA-rated general        
obligation municipal security rose by 70 basis points, versus a 114 basis point 
increase in the 10-year Treasury yield. The ratio of the 10-year AAA-rated      
general obligation bond yield to the 10-year Treasury's yield fell from 88.3% in
January to 82.7% by the end of June.*                                           
  Municipal securities typically are less volatile than Treasury securities and,
therefore, tend to perform relatively well in an environment of rising interest 
rates. During the period, lower supply in the municipal market also helped      
support municipal bond prices as municipalities issue fewer new securities in a 
rising rates environment. As a result, new issuance during the first six months 
of 1999 fell 23% compared to the first half of 1998 (a period when new issuance 
was near record levels).                                                        
For the six months ended June 30, 1999, the Fund's Institutional and        
Investment Shares delivered total returns of -1.14% and -1.17%, respectively.   
That compares to a 0.67% return for the Fund's benchmark, the Lehman Brothers   
Three-Year General Obligation Municipal Bond Index.                             

MANAGING AVERAGE MATURITY                                                       

The Fund's target average maturity is currently 7.50 years. The average     
maturity of the Fund stood at 7.12 years at the end of June, up from 6.94 years 
on January 1, 1999. We are in the process of extending the Fund's average       
maturity, given the recent backup in municipal yields, in order to capture      
additional yield for shareholders. We implemented the longer average maturity   
strategy by purchasing issues such as Massachusetts State Port Authority bonds  
with a 5.00% coupon due in 2028 (1.09%). The Fund maintained its strong average 
credit quality, as we saw few opportunities to purchase lower-quality issues at 
attractive prices.*                                                             

--------------------------------------------------                              

KENT INTERMEDIATE TAX-FREE FUND                                                 
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                         
North Central       37.4%
South               26.1%
Pacific             17.2%
Mountain             3.6%
Other                3.1%
East                12.6%

---------------------------------------------------------------                 

KENT INTERMEDIATE TAX-FREE FUND                                                 
SEC 30-DAY YIELDS                                                               
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                    
Institutional Class.....................................       3.75%
Investment Class........................................       3.49%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 3.74% for Institutional Shares and 3.48% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

THE OUTLOOK                                                                     

We believe that inflation will remain in check during the coming months, as 
the economy's growth rate slows. That environment will help to make bonds an    
attractive investment option going forward, even though municipal bond investors
continue to be distracted by the strong equity market. We expect to maintain the
Fund's relatively long average maturity, and possibly extend it further to      
capture yield for shareholders if rates continue to rise. We also will maintain 
the Fund's high-quality orientation, as the extra yield on lower-quality bonds  
is not enough to justify taking on the additional risk in such securities.      

--------------------------------------------------------------------------------

+The Fund's income may be subject to certain state and local taxes and,       
depending on your tax status, the federal alternative minimum tax.              

*The Fund's portfolio composition is subject to change.                       

20                                                                              

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KENT INTERMEDIATE TAX-FREE FUND                                                 
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                         (inception:           (inception:     
                                          12/16/92)             12/18/92)      
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 -1.14%                -1.17%       
-------------------------------------------------------------------------------
One Year                                    2.28%                 2.03%        
-------------------------------------------------------------------------------
Three Years                                 5.01%                 4.78%        
-------------------------------------------------------------------------------
Five Years                                  5.45%                 5.23%        
-------------------------------------------------------------------------------
Life of Fund                                5.02%                 4.83%        
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
  AS COMPARED WITH THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION MUNICIPAL
                                                                    BOND INDEX
     AND THE LEHMAN BROTHERS FIVE-YEAR GENERAL OBLIGATION MUNICIPAL BOND INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                        [Enlarge/Download Table]

          KENT INTERMEDIATE TAX-   THE LEHMAN BROTHERS THREE-   THE LEHMAN BROTHERS FIVE- 
                FREE FUND            YEAR GENERAL OBLIGATION     YEAR GENERAL OBLIGATION  
           INSTITUTIONAL CLASS                                                            
                  SHARES              MUNICIPAL BOND INDEX         MUNICIPAL BOND INDEX   
                                                                                          
12/16/92                   10,000                       10,000                      10,000
12/31/92                   10,060                       10,300                      10,500
12/31/93                   10,895                       10,673                      10,930
12/31/94                   10,567                       10,755                      10,779
12/31/95                   11,941                       11,705                      12,032
12/31/96                   12,349                       12,243                      12,589
12/31/97                   13,222                       12,905                      13,406
12/31/98                   13,929                       13,572                      13,521
6/30/99                    13,771                       13,663                      13,502

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                        [Enlarge/Download Table]

          KENT INTERMEDIATE TAX-  THE LEHMAN BROTHERS THREE-   THE LEHMAN BROTHERS FIVE- 
                FREE FUND           YEAR GENERAL OBLIGATION     YEAR GENERAL OBLIGATION  
             INVESTMENT CLASS                                                            
                  SHARES             MUNICIPAL BOND INDEX         MUNICIPAL BOND INDEX   
                                                                                         
12/18/92                  10,000                       10,000                      10,000
12/31/92                  10,040                       10,200                      10,600
12/31/93                  10,873                       10,673                      10,930
12/31/94                  10,543                       10,755                      10,779
12/31/95                  11,889                       11,705                      12,032
12/31/96                  12,266                       12,243                      12,581
12/31/97                  13,100                       12,905                      13,406
12/31/98                  13,765                       13,572                      13,521
6/30/99                   13,605                       13,663                      13,502

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers Three-Year     
General Obligation Municipal Bond Index and the Lehman Brothers Five-Year     
General Obligation Municipal Bond Index, both of which are unmanaged indices  
comprised of debt instruments issued by municipalities. The index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the Fund
does reflect the deduction of fees for these value-added services.            

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. The investment return 
 and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              21

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PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT TAX-FREE INCOME FUND+                                                      
BY MICHAEL MARTIN                                                               
PORTFOLIO MANAGER                                                               

Interest rates rose throughout the bond market during the six-month period  
ended June 30, 1999. That increase reflected investor concerns that strong      
domestic growth and signs of recovery in battered overseas economies would force
the Federal Reserve Board (the Fed) to raise short-term interest rates to slow  
the economy's growth rate. In fact, the Fed eventually did raise rates by 25    
basis points late in the period in an attempt to avoid a resurgence in inflation
pressures.                                                                      

MUNICIPALS OUTPERFORMED TREASURIES                                              

Municipal bonds outperformed Treasury securities in that environment. The   
yield on a 30-year AAA-rated general obligation municipal security rose 39 basis
points, from 4.94% on January 1 to 5.33% by the end of June. That compares to an
87 basis point rise in the 30-year Treasury bond yield during that same time.   
Likewise, the ratio of the yield on a 30-year AAA-rated general obligation      
municipal security to the yield on a comparable Treasury ended the period at    
89.2%, down from 97.4% in January.*                                             

Several factors helped municipal bonds outperform Treasury securities. For  
one, municipal securities typically are less volatile than Treasuries and,      
therefore, tend to perform relatively well in an environment of rising interest 
rates. Municipal bonds also benefited from a much lower level of supply than in 
1998, due in part to the fact that rising rates caused municipalities to issue  
fewer new bonds. For example, new issuance of municipal securities during the   
first six months of 1999 fell 23% compared to the same period in 1998.          

 The Fund's Institutional and Investment Shares posted total returns of -1.80%
and -1.82%, respectively, for the six months through June 30, 1999. That        
compares to a -0.89% total return for the Lehman Brothers Municipal Bond Index. 

MANAGING THE FUND                                                               

We took advantage of the increase in municipal yields to extend the Fund's  
average maturity from 10.8 years in January to 12.2 years by the end of June.   
That approach allowed the Fund to capture attractive levels of current income   
for shareholders. We extended the Fund's average maturity by purchasing         
longer-term bonds such as New York City Transitional Finance Authority bonds    
with a 5.00% coupon, due in 2029 (2.46%).                                       

--------------------------------------------------                              

KENT TAX-FREE INCOME FUND                                                       
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                         
North Central       38.3%
South               11.7%
Pacific             16.7%
Mountain            14.8%
Other                3.9%
East                14.6%

---------------------------------------------------------------                 

KENT TAX-FREE INCOME FUND                                                       
SEC 30-DAY YIELDS                                                               
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                    
Institutional Class.....................................       4.12%
Investment Class........................................       3.87%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 4.11% for Institutional Shares and 3.86% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

We maintained the Fund's high average credit rating of AA during the six    
months ended June 30, 1999. The reason is that we believe the additional yield  
available on lower-rated securities was not sufficient to compensate for the    
increased risk such issues carry.*                                              

LOOKING AHEAD                                                                   

The municipal market still faces stiff competition from the robust equity   
market. We believe that the economy's growth rate will slow and inflation will  
remain tame during the second half of 1999, making municipal bonds an attractive
option for investors. Given that perspective, we have positioned the Fund with  
an average maturity that is slightly longer than that of its benchmark index,   
and we will take advantage of any additional rise in yields to increase the     
average maturity further. We also will continue to favor bonds with strong      
credit ratings.                                                                 

--------------------------------------------------------------------------------

+The Fund's income may be subject to certain state and local taxes and,       
depending on your tax status, the federal alternative minimum tax.              

*The Fund's portfolio composition is subject to change.                       

22                                                                              

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KENT TAX-FREE INCOME FUND                                                       
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 3/20/95)  (inception: 3/31/95)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 -1.80%                -1.82%       
-------------------------------------------------------------------------------
One Year                                    1.77%                 1.60%        
-------------------------------------------------------------------------------
Three Years                                 5.64%                 5.40%        
-------------------------------------------------------------------------------
Life of Fund                                5.78%                 5.54%        
-------------------------------------------------------------------------------
*Aggregate Returns                                                             

GROWTH OF A $10,000 INVESTMENT                                                  
                     AS COMPARED WITH THE LEHMAN BROTHERS MUNICIPAL BOND INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

             KENT TAX-FREE INCOME                                  
              FUND INSTITUTIONAL                                   
                     CLASS           THE LEHMAN BROTHERS MUNICIPAL 
                    SHARES                     BOND INDEX          
                                                                   
3/20/95                      10,000                          10,000
12/31/95                     10,860                          10,971
12/31/96                     11,290                          11,457
12/31/97                     12,261                          12,511
12/31/98                     12,957                          13,242
6/30/99                      12,724                          13,124

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

             KENT TAX-FREE INCOME                                 
            FUND INVESTMENT CLASS   THE LEHMAN BROTHERS MUNICIPAL 
                    SHARES                    BOND INDEX          
                                                                  
3/31/95                     10,000                          10,000
12/31/95                    10,834                          10,971
12/31/96                    11,217                          11,457
12/31/97                    12,150                          12,511
12/31/98                    12,809                          13,242
6/30/99                     12,575                          13,124

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers Municipal Bond 
Index, which is an unmanaged index comprised of general obligation municipal  
debt instruments. The index is unmanaged and does not reflect the deduction of
fees associated with a mutual fund, such as investment management and fund    
 accounting fees. The performance of the Fund does reflect the deduction of fees
for these value-added services.                                               

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. The investment return and 
principal value will fluctuate, so that shares, when redeemed, may be worth   
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              23

N-30D 25th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 25th
PORTFOLIO                                                                       
REVIEWS                                                                         
--------------------------------------------------                              

KENT MICHIGAN MUNICIPAL BOND FUND+                                              
BY MICHAEL MARTIN                                                               
PORTFOLIO MANAGER                                                               

 Interest rates rose throughout the six-month period ended June 30, 1999. This
environment developed as strong domestic growth and signs of recovery from in   
overseas economies caused concerns that the Federal Reserve Board (the Fed)     
would raise rates to slow the economy and head off inflation. The Fed eventually
did raise rates by 25 basis points in late June.                                

Municipal bonds outperformed Treasury securities during the period, due in  
large part to the low supply of municipal issues. For example, new issuance of  
municipal bonds in Michigan during the first half of 1999 was down 41% compared 
to the same period in 1998. The yield on the five-year AAA-rated general        
obligation municipal security rose 58 basis points during the period, from 3.75%
in January to 4.33% by the end of June. That increase compares to a 111 basis   
point rise in the five-year Treasury bond yield. The ratio of the yield on the  
five-year AAA-rated general obligation municipal security to the yield on the   
five-year Treasury began the period at 82.6% and fell to 76.5% by the end of    
June.*                                                                          

The Fund's Institutional and Investment Shares delivered total returns of   
-0.07% and -0.15%, respectively, during the six-month period ended June 30,     
1999. The Fund's benchmark, the Lehman Brothers Three-Year General Obligation   
Index, posted a total return of 0.67% during that period.                       

MANAGING THE FUND                                                               

As always, we looked for opportunities to increase the Fund's overall yield 
while maintaining the portfolio's high credit quality. We pursued that strategy 
during the period by purchasing bonds such as Bishop International Airport      
Authority with a 4.88% coupon due in 2001, and Michigan State Hospital Finance  
Authority for Memorial Healthcare with a 4.40% coupon due in 2001 (0.31%). The  
Fund's average maturity ended the period at 3.92 years, down slightly from 4.10 
years on January 1, 1999. We are in the process of extending the Fund's average 
maturity to 4.15 years given the recent backup in yields.*                      

--------------------------------------------------                              

KENT MICHIGAN MUNICIPAL BOND FUND                                               
DISTRIBUTION OF NET ASSETS                                                      
AS OF JUNE 30, 1999                                                             

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]
                              
Cash Equivalents              
Net Other Assets              
& Liabilities           10.31%
Municipal                     
Securities              89.69%

---------------------------------------------------------------                 

KENT MICHIGAN MUNICIPAL BOND FUND                                               
SEC 30-DAY YIELD                                                                
AS OF JUNE 30, 1999                                                             

                                                                [Download Table]
                                                                    
Institutional Class.....................................       4.00%
Investment Class........................................       3.85%

SEC 30-day yield is computed based on net income during the 30-day period ended 
June 30, 1999. Yield calculations represent past performance and will fluctuate.

Certain fees were waived. Had these waivers not been in effect, the 30-day SEC  
yields would have been 3.99% for Institutional Shares and 3.74% for Investment  
Shares.                                                                         
---------------------------------------------------------------                 

GOING FORWARD                                                                   

Michigan's economy continues to benefit from the strong fundamentals enjoyed
by the overall U.S. economy. The state's unemployment rate is 3.8%, which is    
below the national average. Going forward, Michigan's unemployment rate should  
fall modestly, while personal income is expected to grow at a strong 3.8%       
annualized rate. The market should benefit from low inflation. We will continue 
to look for attractive investments in a variety of sectors, and take advantage  
of opportunities to boost the Fund's yield without compromising the portfolio's 
high credit quality.                                                            

--------------------------------------------------------------------------------

+The Fund's income may be subject to certain state and local taxes and,       
depending on your tax status, the federal alternative minimum tax.              

*The Fund's portfolio composition is subject to change.                       

24                                                                              

N-30D 26th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 26th
KENT MICHIGAN MUNICIPAL BOND FUND                                               
AVERAGE ANNUAL RETURNS AS OF JUNE 30, 1999                                      

                                                                [Download Table]

                                     INSTITUTIONAL CLASS     INVESTMENT CLASS  
                                     (inception: 5/3/93)   (inception: 5/11/93)
                                                                               
-------------------------------------------------------------------------------
Six Months*                                 -0.07%                -0.15%       
-------------------------------------------------------------------------------
One Year                                    2.80%                 2.66%        
-------------------------------------------------------------------------------
Three Years                                 4.34%                 4.19%        
-------------------------------------------------------------------------------
Five Years                                  4.45%                 4.32%        
-------------------------------------------------------------------------------
Life of Fund                                4.08%                 3.91%        
-------------------------------------------------------------------------------
*Aggregate Return                                                              

GROWTH OF A $10,000 INVESTMENT                                                  
            AS COMPARED WITH THE LEHMAN BROTHERS THREE-YEAR GENERAL OBLIGATION
                                                          MUNICIPAL BOND INDEX

INSTITUTIONAL CLASS SHARES                                                      

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

                 KENT MICHIGAN        THE LEHMAN BROTHERS THREE- 
              MUNICIPAL BOND FUND       YEAR GENERAL OBLIGATION  
              INSTITUTIONAL CLASS                                
                     SHARES              MUNICIPAL BOND INDEX    
                                                                 
5/3/93                        10,000                       10,000
12/31/93                      10,300                       10,311
12/31/94                      10,340                       10,390
12/31/95                      11,190                       11,308
12/31/96                      11,580                       11,828
12/31/97                      12,222                       12,468
12/31/98                      12,802                       13,113
6/30/99                       12,793                       13,201

--------------------------------------------------------------------------------

INVESTMENT CLASS SHARES                                                         

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC                     

                                                                [Download Table]

                KENT MICHIGAN       THE LEHMAN BROTHERS THREE- 
             MUNICIPAL BOND FUND      YEAR GENERAL OBLIGATION  
               INVESTMENT CLASS                                
                    SHARES             MUNICIPAL BOND INDEX    
                                                               
5/11/93                     10,000                       10,000
12/31/93                    10,285                       10,311
12/31/94                    10,301                       10,390
12/31/95                    11,126                       11,308
12/31/96                    11,500                       11,828
12/31/97                    12,119                       12,468
12/31/98                    12,676                       13,113
6/30/99                     12,657                       13,201

--------------------------------------------------------------------------------

The Fund's performance is measured against the Lehman Brothers Three-Year     
General Obligation Municipal Bond Index, which is an unmanaged index comprised
of debt instruments issued by municipalities. The index is unmanaged and does 
not reflect the deduction of fees associated with a mutual fund, such as      
investment management and fund accounting fees. The performance of the Fund   
does not reflect the deduction of fees for these value-added services.        

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. The investment return 
 and principal value will fluctuate, so that shares, when redeemed, may be worth
more or less than the original cost. Performance for each class will differ   
based on differences in expenses for each class of shares. Return figures and 
investment values are quoted after deducting all expenses. Total return is    
 based on changes in net asset value, assuming reinvestment of all dividends and
capital gain distributions.                                                   

Certain fees were waived during the period. Had these waivers not been in     
effect, total returns would have been lower.                                  

                                                                              25

N-30D 27th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 27th
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (92.6%):                                              
            ADVERTISING (0.1%):                                     
    14,900  Interpublic Group Cos., Inc.............  $    1,290,713
            AEROSPACE & DEFENSE (0.7%):                             
    84,000  Boeing Co...............................       3,711,750
    32,400  Lockheed Martin Corp....................       1,206,900
    29,900  Raytheon Co., Class B...................       2,104,213
                                                      --------------
                                                           7,022,863
                                                      --------------
            APPLIANCES & HOUSEHOLD PRODUCTS (0.2%):                 
    24,600  Maytag Corp.............................       1,714,313
                                                      --------------
            AUTO/TRUCK -- ORIGINAL EQUIPMENT (0.2%):                
    20,750  Dana Corp...............................         955,796
    45,640  Delphi Automotive Systems Corp..........         847,193
                                                      --------------
                                                           1,802,989
                                                      --------------
            AUTO/TRUCK -- REPLACEMENT EQUIPMENT (0.1%):             
    26,700  Genuine Parts Co........................         934,500
                                                      --------------
            AUTOMOTIVE (1.1%):                                      
   115,400  Ford Motor Co...........................       6,512,888
    65,300  General Motors Corp.....................       4,309,800
                                                      --------------
                                                          10,822,688
                                                      --------------
            BANKS -- MAJOR REGIONAL (4.2%):                         
    73,000  Bank of New York Co., Inc...............       2,678,188
   122,946  Bank One Corp...........................       7,322,970
    32,500  BankBoston Corp.........................       1,661,563
    13,500  Comerica, Inc...........................         802,406
    93,000  First Union Corp........................       4,370,999
    49,700  Fleet Financial Group, Inc..............       2,205,438
    37,500  KeyCorp.................................       1,204,688
    58,800  Mellon Bank Corp........................       2,138,850
    28,900  National City Corp......................       1,892,950
    20,200  Northern Trust Corp.....................       1,959,400
    40,200  PNC Bank Corp. (c)......................       2,316,525
    40,200  SunTrust Banks, Inc.....................       2,791,388
    66,200  U.S. Bancorp............................       2,250,800
    26,500  Wachovia Corp. (c)......................       2,267,406
   158,200  Wells Fargo Co..........................       6,763,049
                                                      --------------
                                                          42,626,620
                                                      --------------
            BANKS -- MIDWEST (0.2%):                                
    24,100  Fifth Third Bancorp.....................       1,604,156
                                                      --------------
            BANKS -- MONEY CENTER (2.1%):                           
   154,100  Bank Of America Corp....................      11,297,455
    83,900  Chase Manhattan Corp....................       7,267,838
    15,900  J.P. Morgan & Co., Inc..................       2,233,950
                                                      --------------
                                                          20,799,243
                                                      --------------
            BANKS -- NORTHEAST (0.1%):                              
    17,200  State Street Corp.......................       1,468,450
                                                      --------------
            BEVERAGES -- ALCOHOLIC (0.3%):                          
    44,700  Anheuser-Busch Co., Inc.................       3,170,906
                                                      --------------


                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           
            BEVERAGES -- SOFT DRINKS (1.8%):                        
   207,200  Coca-Cola Co............................  $   12,950,000
   127,800  PepsiCo, Inc............................       4,944,263
                                                      --------------
                                                          17,894,263
                                                      --------------
            BROADCASTING/CABLE (0.8%):                              
    21,250  Clear Channel Communications, Inc.*.....       1,464,922
    66,700  Comcast Corp., Special Class A..........       2,563,781
    57,000  MediaOne Group, Inc.*...................       4,239,375
                                                      --------------
                                                           8,268,078
                                                      --------------
            BUILDING & CONSTRUCTION -- MISCELLANEOUS (0.2%):        
    59,300  Masco Corp..............................       1,712,288
                                                      --------------
            BUILDING PRODUCTS -- RETAIL/WHOLESALE (1.0%):           
   130,800  Home Depot, Inc.........................       8,428,425
    32,800  Lowe's Cos., Inc........................       1,859,350
                                                      --------------
                                                          10,287,775
                                                      --------------
            BUILDING PRODUCTS -- WOOD (0.1%):                       
    18,200  Weyerhaeuser Co.........................       1,251,250
                                                      --------------
            CHEMICALS -- DIVERSIFIED (1.4%):                        
    25,400  Dow Chemical Co.........................       3,222,625
    94,900  E.I. du Pont de Nemours & Co............       6,482,856
    21,450  Hercules, Inc...........................         843,253
    35,100  PPG Industries, Inc.....................       2,073,094
    22,500  Union Carbide Corp......................       1,096,875
                                                      --------------
                                                          13,718,703
                                                      --------------
            CHEMICALS -- SPECIALTY (0.3%):                          
    24,300  Great Lakes Chemical Corp...............       1,119,319
    26,100  Nalco Chemical Co.......................       1,353,937
    19,800  Sigma-Aldrich Corp......................         681,863
                                                      --------------
                                                           3,155,119
                                                      --------------
            COMMERCIAL SERVICES (0.2%):                             
    75,000  Cendant Corp.*..........................       1,537,500
                                                      --------------
            COMPUTER SOFTWARE (4.7%):                               
    57,300  Computer Associates International,             3,151,500
            Inc.....................................                
   446,000  Microsoft Corp.*........................      40,223,624
   121,500  Oracle Corp.*...........................       4,510,688
                                                      --------------
                                                          47,885,812
                                                      --------------
            COMPUTERS -- LOCAL AREA NETWORK (1.9%):                 
    29,650  3Com Corp.*.............................         791,284
   289,800  Cisco Systems, Inc.*....................      18,637,763
                                                      --------------
                                                          19,429,047
                                                      --------------
            COMPUTERS -- MAINFRAME (2.4%):                          
   182,600  IBM Corp................................      23,601,049
                                                      --------------
            COMPUTERS -- MEMORY DEVICES (0.4%):                     
    66,000  EMC Corp.*..............................       3,630,000
    29,000  Seagate Technology, Inc.*...............         743,125
                                                      --------------
                                                           4,373,125
                                                      --------------

CONTINUED 
26

N-30D 28th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 28th
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           
            COMPUTERS -- MICRO (1.2%):                              
   153,074  Compaq Computer Corp....................  $    3,625,940
   215,000  Dell Computer Corp.*....................       7,955,000
                                                      --------------
                                                          11,580,940
                                                      --------------
            COMPUTERS -- MINI (1.5%):                               
   102,000  Hewlett-Packard Co......................      10,251,000
    64,400  Sun Microsystems, Inc.*.................       4,435,550
                                                      --------------
                                                          14,686,550
                                                      --------------
            COMPUTERS -- SERVICES (0.8%):                           
   104,440  Automatic Data Processing, Inc..........       4,595,360
    14,500  Computer Sciences Corp.*................       1,003,219
    40,300  First Data Corp.........................       1,972,181
                                                      --------------
                                                           7,570,760
                                                      --------------
            CONTAINERS & PACKAGING (0.1%):                          
    19,500  Owens-Illinois, Inc.*...................         637,406
                                                      --------------
            COSMETICS & TOILETRIES (0.8%):                          
    24,120  Alberto-Culver Co., Class B.............         642,195
   105,412  Gillette Co.............................       4,321,892
    51,800  Kimberly-Clark Corp.....................       2,952,600
                                                      --------------
                                                           7,916,687
                                                      --------------
            DIVERSIFIED (4.8%):                                     
    51,700  Allied Signal, Inc......................       3,257,100
   299,000  General Electric Co. (b)................      33,786,999
    18,700  Johnson Controls, Inc...................       1,296,144
    34,800  Minnesota Mining & Manufacturing Co.....       3,025,425
    44,300  Seagram Co., Ltd........................       2,231,613
    23,600  Tenneco, Inc............................         563,450
    19,700  Textron, Inc............................       1,621,556
    44,000  United Technologies Corp................       3,154,250
                                                      --------------
                                                          48,936,537
                                                      --------------
            ELECTRICAL COMPONENTS -- SEMICONDUCTORS (2.7%):         
    31,700  Applied Materials, Inc.*................       2,341,838
   286,000  Intel Corp..............................      17,016,999
    18,500  Micron Technology, Inc.* (c)............         745,781
    28,700  Rockwell International Corp.............       1,743,525
    37,100  Texas Instruments, Inc..................       5,379,500
                                                      --------------
                                                          27,227,643
                                                      --------------
            ELECTRONIC -- CONNECTORS (0.0%):                        
     8,600  Thomas & Betts Corp.....................         406,350
                                                      --------------
            ELECTRONIC MEASURING EQUIPMENT (0.0%):                  
    14,800  Tektronix, Inc. (c).....................         446,775
                                                      --------------
            FINANCE (0.5%):                                         
    60,414  Associates First Capital Corp., Class          2,677,095
            A.......................................                
    62,516  Washington Mutual, Inc..................       2,211,504
                                                      --------------
                                                           4,888,599
                                                      --------------
            FINANCIAL -- CONSUMER LOANS (0.2%):                     
    44,800  Household International, Inc............       2,122,400
                                                      --------------


                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           
            FINANCIAL -- INVESTMENT BANKERS (0.4%):                 
    45,700  Merrill Lynch & Co., Inc................  $    3,653,144
                                                      --------------
            FINANCIAL -- MISCELLANEOUS SERVICES (1.3%):             
    44,650  American Express Co.....................       5,810,081
    71,200  Morgan Stanley, Dean Witter & Co........       7,298,000
                                                      --------------
                                                          13,108,081
                                                      --------------
            FINANCIAL -- MORTGAGE & RELATED SERVICES (1.1%):        
   108,050  Fannie Mae..............................       7,387,919
    61,600  Freddie Mac.............................       3,572,800
                                                      --------------
                                                          10,960,719
                                                      --------------
            FINANCIAL SERVICES -- DIVERSIFIED (1.5%):               
   322,725  Citigroup, Inc..........................      15,329,438
                                                      --------------
            FOOD -- CANNED (0.4%):                                  
    46,100  Campbell Soup Co........................       2,068,738
    44,491  H.J. Heinz Co...........................       2,230,111
                                                      --------------
                                                           4,298,849
                                                      --------------
            FOOD -- DIVERSIFIED (1.4%):                             
    26,000  Bestfoods...............................       1,287,000
    67,100  ConAgra, Inc............................       1,786,538
    22,400  General Mills, Inc......................       1,800,400
    36,900  Kellogg Co. (c).........................       1,217,700
    19,600  Quaker Oats Co..........................       1,300,950
    30,100  Ralston Purina Group....................         916,169
    88,900  Sara Lee Corp...........................       2,016,919
    53,750  Unilever NV.............................       3,749,062
                                                      --------------
                                                          14,074,738
                                                      --------------
            FOOD ITEMS -- WHOLESALE (0.1%):                         
    46,400  Supervalu, Inc..........................       1,191,900
                                                      --------------
            FOOD PRODUCTS (0.2%):                                   
    42,000  Safeway Inc.*...........................       2,079,000
                                                      --------------
            HEALTH CARE (0.1%):                                     
    24,000  McKesson HBOC, Inc......................         771,000
                                                      --------------
            HOME DECORATION PRODUCTS (0.2%):                        
    40,500  Newell Rubbermaid Inc. (c)..............       1,883,250
                                                      --------------
            HOTELS & LODGING (0.2%):                                
    41,500  Marriott International, Inc., Class A...       1,551,063
                                                      --------------
            INSTRUMENTS -- CONTROL (0.2%):                          
    20,150  Honeywell, Inc..........................       2,334,881
                                                      --------------
            INSURANCE -- ACCIDENT & HEALTH (0.1%):                  
    31,650  Aon Corp................................       1,305,563
                                                      --------------
            INSURANCE -- BROKERS (0.3%):                            
    33,600  Marsh & McLennan Cos., Inc..............       2,536,800
                                                      --------------
            INSURANCE -- LIFE (0.6%):                               
    31,600  American General Corp...................       2,381,849
    43,000  Conseco, Inc............................       1,308,813

CONTINUED 
27

N-30D 29th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 29th
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           

INSURANCE -- LIFE (CONTINUED)                           

                                                                [Download Table]
                                                                    
    19,100  Torchmark Corp..........................  $      651,788
    30,000  UNUM Corp.*.............................       1,642,500
                                                      --------------
                                                           5,984,950
                                                      --------------
            INSURANCE -- MULTI-LINE (0.4%):                         
    12,400  Aetna, Inc..............................       1,109,025
    24,150  CIGNA Corp..............................       2,149,350
    12,300  MBIA, Inc...............................         796,425
                                                      --------------
                                                           4,054,800
                                                      --------------
            INSURANCE -- PROPERTY & CASUALTY (1.8%):                
   106,200  Allstate Corp...........................       3,809,925
   104,700  American International Group, Inc.......      12,256,443
    15,500  Chubb Corp..............................       1,077,250
    23,100  Safeco Corp.............................       1,019,288
                                                      --------------
                                                          18,162,906
                                                      --------------
            INTERNET SOFTWARE (0.9%):                               
    80,100  America Online, Inc.*...................       8,851,050
                                                      --------------
            MACHINE TOOLS & RELATED PRODUCTS (0.1%):                
    16,800  The Black & Decker Corp.................       1,060,500
                                                      --------------
            MACHINERY & EQUIPMENT (0.1%):                           
    45,700  Milacron, Inc...........................         845,450
                                                      --------------
            MACHINERY -- CONSTRUCTION/MINING (0.3%):                
    35,000  Caterpillar, Inc........................       2,100,000
    18,800  Ingersoll-Rand Co.......................       1,214,950
                                                      --------------
                                                           3,314,950
                                                      --------------
            MACHINERY -- ELECTRICAL (0.3%):                         
    47,500  Emerson Electric Co.....................       2,986,563
                                                      --------------
            MACHINERY -- GENERAL INDUSTRIAL (0.2%):                 
    21,700  Illinois Tool Works, Inc................       1,779,400
                                                      --------------
            MEDIA CONGLOMERATES (1.3%):                             
   110,900  Time Warner, Inc........................       7,984,800
   178,555  Walt Disney Co.*........................       5,501,726
                                                      --------------
                                                          13,486,526
                                                      --------------
            MEDICAL -- BIOMEDICAL/GENETIC (0.3%):                   
    48,000  Amgen, Inc.*............................       2,922,000
                                                      --------------
            MEDICAL -- DRUGS (7.7%):                                
   147,000  Abbott Laboratories.....................       6,688,500
   112,200  American Home Products Corp.............       6,451,500
   200,600  Bristol-Myers Squibb Co.................      14,129,762
    97,300  Eli Lilly & Co..........................       6,969,113
   218,400  Merck & Co., Inc........................      16,161,599
   114,100  Pfizer, Inc.............................      12,522,475
    45,100  Pharmacia & Upjohn, Inc.................       2,562,244
   140,400  Schering-Plough Corp....................       7,441,200
    81,400  Warner-Lambert Co.......................       5,647,125
                                                      --------------
                                                          78,573,518
                                                      --------------

                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           
            MEDICAL -- HEALTH MEDICAL ORGANIZATION (0.0%):          
    20,950  Humana, Inc.*...........................  $      271,041
                                                      --------------
            MEDICAL -- OUTPATIENT/HOME CARE (0.1%):                 
    70,400  HEALTHSOUTH Corp.*......................       1,051,600
                                                      --------------
            MEDICAL -- WHOLESALE DRUG (0.2%):                       
    24,800  Cardinal Health, Inc....................       1,590,300
                                                      --------------
            MEDICAL INSTRUMENTS (0.1%):                             
    18,500  Biomet, Inc.............................         735,375
                                                      --------------
            MEDICAL PRODUCTS (0.4%):                                
    26,200  Baxter International, Inc...............       1,588,375
    40,900  Guidant Corp.*..........................       2,103,794
                                                      --------------
                                                           3,692,169
                                                      --------------
            MEDICAL/DENTAL SUPPLIES (1.4%):                         
    32,100  Becton, Dickinson & Co..................         963,000
    24,300  C.R. Bard, Inc..........................       1,161,844
   117,220  Johnson & Johnson.......................      11,487,560
                                                      --------------
                                                          13,612,404
                                                      --------------
            METAL -- GOLD (0.1%):                                   
    56,850  Barrick Gold Corp.......................       1,101,469
    30,150  Homestake Mining Co. (c)................         246,853
                                                      --------------
                                                           1,348,322
                                                      --------------
            METAL -- MISCELLANEOUS (0.1%):                          
    36,600  Cyprus Amax Minerals Co.................         555,863
                                                      --------------
            METAL -- NON-FERROUS (0.2%):                            
    29,250  Freeport-McMoran Copper & Gold, Inc.,            524,672
            Class B*................................                
    23,600  Reynolds Metals Co......................       1,392,400
                                                      --------------
                                                           1,917,072
                                                      --------------
            METALS (0.3%):                                          
    44,900  Alcoa Inc...............................       2,778,188
                                                      --------------
            OFFICE AUTOMATION & EQUIPMENT (0.6%):                   
    39,500  Pitney Bowes, Inc.......................       2,537,875
    58,100  Xerox Corp..............................       3,431,531
                                                      --------------
                                                           5,969,406
                                                      --------------
            OIL -- FIELD SERVICES (0.5%):                           
    50,600  Halliburton Co..........................       2,289,650
    40,000  Schlumberger Ltd........................       2,547,500
                                                      --------------
                                                           4,837,150
                                                      --------------
            OIL -- INTERNATIONAL INTEGRATED (4.3%):                 
    65,200  Chevron Corp............................       6,206,225
   212,000  Exxon Corp..............................      16,350,499
    73,000  Mobil Corp..............................       7,227,000
   182,000  Royal Dutch Petroleum Co., ADR..........      10,965,500
    46,500  Texaco, Inc.............................       2,906,250
                                                      --------------
                                                          43,655,474
                                                      --------------

CONTINUED 
28

N-30D 30th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 30th
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           
            OIL -- PRODUCTION/PIPELINE (0.3%):                      
    15,900  Columbia Gas System, Inc................  $      996,731
    29,650  Enron Corp..............................       2,423,888
                                                      --------------
                                                           3,420,619
                                                      --------------
            OIL -- U.S. INTEGRATED (0.7%):                          
    27,800  Atlantic Richfield Co...................       2,323,037
    34,000  Phillips Petroleum Co...................       1,710,625
    37,900  Unocal Corp.............................       1,501,788
    48,700  USX-Marathon Group......................       1,585,794
                                                      --------------
                                                           7,121,244
                                                      --------------
            OIL REFINING (0.1%):                                    
    21,350  Ashland, Inc............................         856,669
                                                      --------------
            PAPER & RELATED PRODUCTS (0.5%):                        
    28,150  Fort James Corp.........................       1,066,181
    53,773  International Paper Co..................       2,715,537
    29,600  Mead Corp...............................       1,235,800
                                                      --------------
                                                           5,017,518
                                                      --------------
            PHOTOGRAPHY (0.2%):                                     
    28,950  Eastman Kodak Co........................       1,961,363
                                                      --------------
            PIPELINES (0.2%):                                       
    14,800  Consolidated Natural Gas Co.............         899,100
    37,600  The Williams Companies, Inc.............       1,600,350
                                                      --------------
                                                           2,499,450
                                                      --------------
            POLLUTION CONTROL (0.3%):                               
    50,000  Waste Management, Inc.*.................       2,687,500
                                                      --------------
            PROTECTION -- SAFETY (0.7%):                            
    79,000  Tyco International Ltd..................       7,485,250
                                                      --------------
            PUBLISHING -- BOOKS (0.2%):                             
    34,000  McGraw-Hill Cos., Inc...................       1,833,875
                                                      --------------
            PUBLISHING -- NEWSPAPERS (0.6%):                        
    36,200  Gannett, Inc............................       2,583,775
    13,850  Knight-Ridder, Inc. (c).................         760,884
    19,700  New York Times Co., Class A.............         725,206
    17,500  Tribune Co..............................       1,524,688
                                                      --------------
                                                           5,594,553
                                                      --------------
            RESTAURANTS (0.5%):                                     
   130,800  McDonald's Corp.........................       5,403,675
                                                      --------------
            RETAIL -- APPAREL/SHOES (0.6%):                         
    78,600  Gap, Inc................................       3,959,475
    40,100  Limited, Inc............................       1,819,538
                                                      --------------
                                                           5,779,013
                                                      --------------
            RETAIL -- DISCOUNT (2.9%):                              
    61,000  Dayton-Hudson Corp......................       3,965,000


                            SECURITY                      MARKET    
  SHARES                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED)                                           

RETAIL -- DISCOUNT (CONTINUED)                              

                                                                [Download Table]
                                                                 
 42,700  Kmart Corp.*............................  $      701,881
497,000  Wal-Mart Stores, Inc. (b)...............      23,980,249
                                                   --------------
                                                       28,647,130
                                                   --------------
         RETAIL -- DRUG STORE (0.3%):                            
102,356  Walgreen Co.............................       3,006,708
                                                   --------------
         RETAIL -- MAJOR DEPARTMENT STORES (0.4%):               
 22,850  J.C. Penney, Inc. (c)...................       1,109,653
 33,900  May Department Stores Co................       1,385,663
 36,600  Sears, Roebuck & Co.....................       1,630,987
                                                   --------------
                                                        4,126,303
                                                   --------------
         RETAIL -- REGIONAL DEPARTMENT STORES (0.1%):            
 19,500  Federated Department Stores, Inc.*......       1,032,281
                                                   --------------
         RETAIL -- SUPERMARKETS (0.2%):                          
 47,779  Albertson's, Inc........................       2,463,605
                                                   --------------
         RUBBER -- TIRES (0.2%):                                 
 16,600  Goodyear Tire & Rubber Co...............         976,288
 15,000  The B.F. Goodrich Co. (c)...............         637,500
                                                   --------------
                                                        1,613,788
                                                   --------------
         SOAP & CLEANING PREPARATIONS (1.4%):                    
 26,178  Colgate-Palmolive Co. (c)...............       2,585,078
125,800  Procter & Gamble Co.....................      11,227,650
                                                   --------------
                                                       13,812,728
                                                   --------------
         STEEL -- PRODUCERS (0.1%):                              
 16,500  Nucor Corp..............................         782,719
 13,600  USX-U.S. Steel Group....................         367,200
                                                   --------------
                                                        1,149,919
                                                   --------------
         TELECOMMUNICATIONS -- EQUIPMENT (3.1%):                 
 15,200  Harris Corp.............................         595,650
272,200  Lucent Technologies, Inc................      18,356,487
 60,300  Motorola, Inc...........................       5,713,425
 50,000  Nortel Networks Corp....................       4,340,625
 24,000  Tellabs, Inc.*..........................       1,621,500
                                                   --------------
                                                       30,627,687
                                                   --------------
         TEXTILE -- APPAREL (0.1%):                              
 20,800  VF Corp.................................         889,200
                                                   --------------
         TEXTILE -- HOME FURNISHINGS (0.1%):                     
 12,000  Springs Industries, Inc.................         523,500
                                                   --------------
         TOBACCO (1.1%):                                         
250,800  Philip Morris Cos., Inc.................      10,079,025
 27,900  U.S.T., Inc.............................         816,075
                                                   --------------
                                                       10,895,100
                                                   --------------
         TOOLS -- HAND HELD (0.0%):                              
 11,850  Snap-On, Inc............................         428,822
                                                   --------------

SEE NOTES TO FINANCIAL STATEMENTS.
29

N-30D 31st “Page” of 126 TOC 1st Previous Next ↓Bottom Just 31st
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

SHARES OR                                                           
PRINCIPAL                   SECURITY                      MARKET    
  AMOUNT                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
COMMON STOCKS (CONTINUED):                                          
            TOYS/GAME/HOBBY (0.2%):                                 
    33,150  Hasbro, Inc.............................  $      926,128
    24,700  Mattel, Inc.............................         653,006
                                                      --------------
                                                           1,579,134
                                                      --------------
            TRANSPORTATION -- AIR FREIGHT (0.2%):                   
    28,300  FDX Corp.*..............................       1,535,275
                                                      --------------
            TRANSPORTATION -- AIRLINE (0.3%):                       
    17,300  AMR Corp.*..............................       1,180,725
    14,900  Delta Air Lines, Inc....................         858,613
    40,700  Southwest Airlines Co...................       1,266,787
                                                      --------------
                                                           3,306,125
                                                      --------------
            TRANSPORTATION -- EQUIPMENT & LEASING (0.0%):           
    14,300  Ryder Systems, Inc......................         371,800
                                                      --------------
            TRANSPORTATION -- RAILROAD (0.4%):                      
    20,000  CSX Corp................................         906,250
    32,700  Norfolk Southern Corp...................         985,088
    28,300  Union Pacific Corp......................       1,650,243
                                                      --------------
                                                           3,541,581
                                                      --------------
            UTILITIES -- ELECTRIC POWER (1.9%):                     
    40,500  Consolidated Edison, Inc................       1,832,625
    23,700  Detroit Edison Co.......................         948,000
    35,300  Dominion Resources, Inc. (c)............       1,528,931
    45,500  Duke Energy Corp........................       2,474,062
    44,500  Entergy Corp............................       1,390,625
    21,750  First Energy Corp.......................         674,250
    29,650  Florida Power & Light, Inc..............       1,619,631
    38,000  Northern States Power Co................         919,125
    28,700  Peco Energy Corp........................       1,207,194
    38,500  Public Service Enterprise Group, Inc....       1,573,688
    50,200  Reliant Energy, Inc.....................       1,386,775
    87,000  Southern Co.............................       2,305,500
    37,600  Texas Utilities Co......................       1,551,000
                                                      --------------
                                                          19,411,406
                                                      --------------
            UTILITIES -- TELEPHONE (7.8%):                          
   107,548  Ameritech Corp..........................       7,904,778
   306,420  AT&T Corp...............................      17,102,065
   139,400  Bell Atlantic Corp......................       9,113,275
   188,800  BellSouth Corp..........................       8,850,000
    79,950  GTE Corp................................       6,051,216
   155,100  MCI Worldcom, Inc.*.....................      13,377,375
   174,900  SBC Communications, Inc.................      10,144,200
    77,200  Sprint Corp.............................       4,077,125
    49,497  US West, Inc............................       2,907,949
                                                      --------------
                                                          79,527,983
                                                      --------------
            TOTAL COMMON STOCKS.....................     930,058,304
                                                      --------------

INVESTMENT COMPANIES (6.7%):                                        
19,604,624  Dreyfus Cash Management Money Market          19,604,624
            Fund....................................                


SHARES OR                                                           
PRINCIPAL                   SECURITY                      MARKET    
  AMOUNT                  DESCRIPTION                     VALUE     
----------  ----------------------------------------  --------------
                                                                    
INVESTMENT COMPANIES (CONTINUED)                                    
47,453,166  Federated Prime Value Obligations Money   $   47,453,166
            Market Fund.............................                
                                                      --------------
            TOTAL INVESTMENT COMPANIES..............      67,057,790
                                                      --------------

SHORT-TERM SECURITIES HELD AS COLLATERAL (1.5%):                    
            COMMERICAL PAPER (0.6%):                                
   400,000  Ameritech Capital Funding Corp., 5.12%,          398,676
            7/23/99.................................                
   350,000  Bell South Telecommunications, 5.16%,            349,544
            7/9/99..................................                
   400,000  Cargill Inc., 5.65%, 7/1/99.............         400,000
   400,000  Coca-Cola Co., 5.13%, 7/30/99...........         398,279
   400,000  Daimler, 5.14%, 8/11/99.................         397,583
   400,000  R.R. Donnelley & Sons Co., 5.26%,                398,847
            7/20/99.................................                
   400,000  Duke Energy, 5.50%, 7/1/99..............         400,000
   400,000  Ford Motor Credit Corp., 5.18%,                  399,076
            7/16/99.................................                
   300,000  Gannett Co., 5.09%, 7/19/99.............         299,178
   400,000  General Electric Capital Corp., 5.10%,           397,583
            8/11/99.................................                
   400,000  General Motors Acceptance Corp., 5.09%,          397,699
            8/9/99..................................                
   400,000  GTE Funding Corp., 5.04%, 7/8/99........         399,089
   400,000  H.J.Heinz Co., 5.14%, 8/19/99...........         397,117
   400,000  Mobil Corp., 5.50%, 7/1/99..............         400,000
   400,000  Nestle Capital Corp., 5.23%, 7/1/99.....         400,000
   400,000  UBS Finance, 5.50%, 7/1/99..............         400,000
                                                      --------------
                                                           6,232,671
                                                      --------------
            REPURCHASE AGREEMENTS (0.8%):                           
 1,500,204  Chase Securities Inc. 4.90%, 7/1/99            1,500,204
            (Collateralized by $1,501,138 various                   
            Corporate Notes & Bonds, 6.25%-7.25%,                   
            6/30/01-5/15/16, market value                           
            $1,500,086).............................                
 3,042,439  Goldman Sachs & Co. 5.20%, 7/1/99              3,042,439
            (Collateralized by $4,904,686 various                   
            Government Agency Securities, 4.50%-                    
            12.50%, 3/15/01-6/20/29, market value                   
            $3,102,840).............................                
 2,000,813  Merrill Lynch GSI 4.83%, 7/1/99,               2,000,813
            (Collateralized by $1,915,408 various                   
            Corporate Bonds & Notes, 5.50%-8.88%,                   
            2/15/00-5/15/21, market value                           
            $2,040,009).............................                
 1,242,513  Prudential Securities Inc. 4.90%, 7/1/99       1,242,513
            (Collateralized by $2,356,395 various                   
            Government Agency Securities, 5.50%-                    
            12.50%, 1/15/01-6/20/29, market value                   
            $1,266,840).............................                
                                                      --------------
                                                           7,785,969
                                                      --------------
            TIME DEPOSITS (0.1%):                                   
   500,081  Barclays Bank PLC London, 5.81%,                 500,081
            7/1/99..................................                
                                                      --------------

CONTINUED 
30

N-30D 32nd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 32nd
Kent Funds                                
              GROWTH AND INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

SHARES OR                                                            
PRINCIPAL                   SECURITY                      MARKET     
  AMOUNT                  DESCRIPTION                     VALUE      
----------  ----------------------------------------  -------------- 
                                                                     
SHORT-TERM SECURITIES HELD AS                                        
COLLATERAL (CONTINUED):                                              
            TIME DEPOSITS (CONTINUED):                               
$  500,082  Canadian Imperial Bank Commerce Cay,      $      500,082 
            5.88%,7/1/99............................                 
                                                      -------------- 
                                                           1,000,163 
                                                      -------------- 
            TOTAL SHORT-TERM SECURITIES HELD AS                      
            COLLATERAL..............................      15,018,803 
                                                      -------------- 
            TOTAL INVESTMENTS                                        
            (Cost $645,558,069) (a) -- 100.8%.......   1,012,134,897 
                                                      -------------- 
            LIABILITIES IN EXCESS OF OTHER ASSETS --                 
            (0.8)%..................................      (7,995,364)
                                                      -------------- 
            TOTAL NET ASSETS -- 100.0%..............  $1,004,139,533 
                                                      -------------- 
                                                      -------------- 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $373,974,165 
Unrealized depreciation...........................    (7,397,337)
                                                    ------------ 
Net unrealized appreciation.......................  $366,576,828 
                                                    ------------ 
                                                    ------------ 

(b)  Security has been deposited as initial margin on open futures contract     
(c)  A portion of this security was loaned as of June 30, 1999.                 
*  Non-income producing security                                            
ADR American Depositary Receipt                                                 

At June 30, 1999 the Fund's open future contracts were as follows:              

                                                                [Download Table]

  # OF         OPENING          FACE           MARKET    
CONTRACTS   CONTRACT TYPE      AMOUNT           VALUE    
---------   -------------   -------------   -------------
                                                         
             Standard &                                  
   195         Poor's       $  65,255,200   $  67,357,875
            500, 9/16/99                                 

CONTINUED 
31

N-30D 33rd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 33rd
Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (98.3%):                                            
            ADVERTISING (1.0%):                                   
    51,000  Catalina Market Corp.*..................  $  4,692,000
    81,900  Ha-Lo Industries, Inc.*.................       808,763
    40,000  True North Communications...............     1,200,000
                                                      ------------
                                                         6,700,763
                                                      ------------
            AEROSPACE & DEFENSE (0.5%):                           
    20,400  Alliant Techsystems, Inc.*..............     1,764,600
    54,800  Newport News Shipbuilding...............     1,616,600
                                                      ------------
                                                         3,381,200
                                                      ------------
            AEROSPACE/DEFENSE EQUIPMENT (0.3%):                   
    43,150  AAR Corp................................       978,965
    54,630  Fairchild Corp., Class A*...............       696,533
    48,000  Hexcel Corp.*...........................       486,000
                                                      ------------
                                                         2,161,498
                                                      ------------
            AUDIO/VIDEO PRODUCTION (0.3%):                        
    50,280  Harman International Industries, Inc....     2,212,320
                                                      ------------
            AUTO/TRUCK -- ORIGINAL EQUIPMENT (0.9%):              
    46,800  Arvin Industries, Inc...................     1,772,550
    45,000  Detroit Diesel Corp.....................     1,108,125
    27,700  Standard Products Co....................       709,813
    23,000  Superior Industries International.......       632,500
    79,100  Tower Automotive, Inc.*.................     2,012,106
                                                      ------------
                                                         6,235,094
                                                      ------------
            BANKS -- CENTRAL US (1.6%):                           
   170,000  Community First Bankshares..............     4,058,749
   122,700  MAF Bancorp, Inc........................     2,975,475
    85,000  Republic Bancorp........................     1,290,938
   122,500  St. Paul Bancorp, Inc...................     3,123,750
                                                      ------------
                                                        11,448,912
                                                      ------------
            BANKS -- EAST (1.7%):                                 
    65,000  Banknorth Group, Inc....................     2,145,000
    27,000  Community Bank System, Inc..............       678,375
   100,000  Hudson United Bancorp...................     3,062,500
   124,000  Roslyn Bancorp, Inc.....................     2,131,250
   122,000  UST Corp................................     3,690,499
                                                      ------------
                                                        11,707,624
                                                      ------------
            BANKS -- MIDWEST (0.5%):                              
    71,900  First Midwest Bancgroup, Inc............     2,858,025
    45,000  Irwin Financial Corp....................       877,500
                                                      ------------
                                                         3,735,525
                                                      ------------
            BANKS -- NORTHEAST (0.9%):                            
    77,286  Commerce Bancorp, Inc...................     3,303,977
    79,200  First Commonwealth Financial............     1,890,900
    52,200  Independent Bank Corp...................       822,150
    25,300  Sterling Bancorp........................       480,700
                                                      ------------
                                                         6,497,727
                                                      ------------
            BANKS -- SOUTH (0.9%):                                
   111,300  Firstbank Corp..........................     2,511,206


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         

BANKS -- SOUTH (CONTINUED)                              

                                                                [Download Table]
                                                               
 78,100  Premier Bancshares, Inc.................  $  1,430,206
 91,500  Republic Security Financial Corp........       766,313
 77,100  Triangle Bancorp, Inc...................     1,305,881
                                                   ------------
                                                      6,013,606
                                                   ------------
         BANKS -- SOUTHEAST (0.7%):                            
139,000  BancorpSouth, Inc.......................     2,519,375
 72,800  F & M National Corp.....................     2,416,050
                                                   ------------
                                                      4,935,425
                                                   ------------
         BANKS -- SOUTHWEST (0.2%):                            
 46,800  Texas Regional Bancshares...............     1,272,375
                                                   ------------
         BANKS -- WEST (0.8%):                                 
 33,326  First Republic Bancorp, Inc.*...........       964,371
143,200  Imperial Bancorp.*......................     2,837,150
 72,500  Silicon Valley Bankshares*..............     1,794,375
                                                   ------------
                                                      5,595,896
                                                   ------------
         BEVERAGES -- SOFT DRINKS (0.0%):                      
  2,145  Buenos Aires Embotella Doro - ADR*                   0
         (c).....................................              
                                                   ------------
         BROADCASTING/CABLE (0.1%):                            
 16,000  Jones Intercable, Inc., Class A*........       784,000
                                                   ------------
         BUILDING (0.4%):                                      
 37,400  Centex Construction Products, Inc.......     1,276,275
 35,400  Lone Star Industries, Inc...............     1,329,713
                                                   ------------
                                                      2,605,988
                                                   ------------
         BUILDING & CONSTRUCTION -- MISCELLANEOUS (0.5%):      
 70,900  Dal-Tile International, Inc.*...........       806,488
 37,050  Elcor Corp..............................     1,618,621
 27,800  Nortek, Inc.*...........................       870,488
                                                   ------------
                                                      3,295,597
                                                   ------------
         BUILDING -- HEAVY CONSTRUCTION (0.4%):                
 23,400  Dycom Industries, Inc.* (c).............     1,310,400
 42,700  Granite Construction, Inc...............     1,251,644
                                                   ------------
                                                      2,562,044
                                                   ------------
         BUILDING -- MAINTENANCE & SERVICE (0.2%):             
 48,800  ABM Industries, Inc.....................     1,497,550
                                                   ------------
         BUILDING -- MOBILE/MANUFACTURING & RECREATIONAL       
         VEHICLES (0.1%):                                      
 38,300  Winnebago Industries, Inc...............       861,750
                                                   ------------
         BUILDING -- RESIDENTIAL/COMMERCIAL (0.9%):            
 53,400  D. R. Horton, Inc.......................       887,775
 63,200  Kaufman & Broad Home Corp...............     1,572,100
 35,400  Pulte Corp..............................       818,625
 21,800  Ryland Group, Inc.......................       647,188
 59,500  Standard-Pacific Corp...................       769,781

CONTINUED 
32

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         

BUILDING -- RESIDENTIAL/COMMERCIAL (CONTINUED)          

                                                                [Download Table]
                                                                  
    53,300  Toll Brothers, Inc.*....................  $  1,142,619
    18,300  U.S. Home Corp.*........................       649,650
                                                      ------------
                                                         6,487,738
                                                      ------------
            BUILDING PRODUCTS -- AIR CONDITIONING/HEAT (0.1%):    
    47,962  Watsco, Inc.............................       785,378
                                                      ------------
            BUILDING PRODUCTS -- LIGHTING/FIXTURES (0.1%):        
    23,000  Thomas Industries, Inc..................       471,500
                                                      ------------
            BUILDING PRODUCTS -- RETAIL/WHOLESALE (0.3%):         
    86,400  HomeBase, Inc.* (c).....................       545,400
    59,900  Hughes Supply, Inc......................     1,778,281
                                                      ------------
                                                         2,323,681
                                                      ------------
            BUSINESS INFORMATION (0.3%):                          
    70,000  Primark Corp.*..........................     1,964,375
                                                      ------------
            BUSINESS SERVICES (1.0%):                             
    67,000  ADVO, Inc.*.............................     1,390,250
    54,600  Budget Group, Inc. - Class A*...........       672,263
    38,300  Fair Issac & Co., Inc...................     1,342,894
    69,300  Franklin Covey Co.*.....................       511,088
    45,200  Healthplan Services Corp................       307,925
   132,000  Interim Services, Inc.*.................     2,722,499
                                                      ------------
                                                         6,946,919
                                                      ------------
            CHEMICALS -- PLASTIC (0.5%):                          
    50,100  Geon Co.................................     1,615,725
    41,700  Spartech Corp...........................     1,279,669
    50,000  Wellman, Inc............................       796,875
                                                      ------------
                                                         3,692,269
                                                      ------------
            CHEMICALS -- SPECIALTY (0.5%):                        
    19,800  Bush Boake Allen, Inc.*.................       579,150
    84,900  NL Industries, Inc......................       944,513
    47,300  OM Group, Inc...........................     1,631,850
                                                      ------------
                                                         3,155,513
                                                      ------------
            COMMERCIAL SERVICES (1.1%):                           
    35,000  CDI Corp.*..............................     1,192,188
   129,688  InaCom Corp.*...........................     1,637,310
    29,500  Maximus, Inc.* (c)......................       851,813
    28,500  Metamor Worldwide, Inc.*................       685,781
    49,500  Norrell Corp............................       931,219
    64,200  NOVA Corp.*.............................     1,604,999
    60,000  Personnel Group of America, Inc.* (c)...       600,000
                                                      ------------
                                                         7,503,310
                                                      ------------
            COMPUTER DATA SECURITY (0.2%):                        
    30,000  ISS Group, Inc.*........................     1,132,500
                                                      ------------

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            COMPUTER HARDWARE MANUFACTURING (0.3%):               
    33,100  Sequent Computer*.......................  $    587,525
   101,165  SpeedFam-IPEC, Inc.*....................     1,624,963
                                                      ------------
                                                         2,212,488
                                                      ------------
            COMPUTER SOFTWARE (2.5%):                             
    30,800  Ardent Software, Inc.*..................       654,500
    25,000  Broadvision, Inc.*......................     1,843,749
    20,700  Documentum, Inc.* (c)...................       270,394
    82,700  Epicor Software Corp.*..................       615,081
    60,000  Excalibur Technologies Corp.* (c).......       855,000
    65,000  Hyperion Solutions Corp.*...............     1,157,813
    25,000  Infoseek Corp.* (c).....................     1,198,438
    50,000  Mercury Interactive Corp.*..............     1,768,750
    92,500  Midway Games, Inc.*.....................     1,196,719
    50,300  MSC. Software Corp.*....................       292,369
    50,000  Peregrine Systems, Inc.*................     1,284,375
    12,800  Progress Software Corp.*................       361,600
    36,600  Project Software & Development, Inc.*...     1,143,750
    42,650  Rainbow Technologies, Inc.*.............       503,803
    61,300  Sybase, Inc.*...........................       674,300
    60,000  Transaction Systems Architects, Inc.*...     2,339,999
    90,000  Wind River Systems, Inc.*...............     1,445,625
                                                      ------------
                                                        17,606,265
                                                      ------------
            COMPUTERS -- EQUIPMENT (0.3%):                        
    50,000  Insight Enterprises, Inc.* (c)..........     1,237,500
    53,000  Systemax Inc.*..........................       655,875
                                                      ------------
                                                         1,893,375
                                                      ------------
            COMPUTERS -- INTEGRATED SYSTEMS (0.7%):               
    85,000  Cerner Corp.*...........................     1,782,344
    58,900  MICROS Systems, Inc.*...................     2,002,600
    51,500  Systems & Computer Technology Corp.*....       749,969
                                                      ------------
                                                         4,534,913
                                                      ------------
            COMPUTERS -- LOCAL AREA NETWORK (0.3%):               
    35,000  ACT Networks, Inc.*.....................       597,188
    81,000  Anixter International, Inc.*............     1,478,250
                                                      ------------
                                                         2,075,438
                                                      ------------
            COMPUTERS -- MEMORY DEVICES (0.7%):                   
    92,011  Applied Magnetics Corp.* (c)............       281,784
    72,700  Hutchinson Technology, Inc.*............     2,017,425
    15,000  SanDisk Corp.*..........................       675,000
   278,100  Western Digital Corp.* (c)..............     1,807,650
                                                      ------------
                                                         4,781,859
                                                      ------------
            COMPUTERS -- MICRO (0.3%):                            
   150,300  Data General Corp.* (c).................     2,188,744
                                                      ------------
            COMPUTERS -- NETWORKING PRODUCTS (0.1%):              
    29,500  Visual Networks, Inc.*..................       944,000
                                                      ------------
            COMPUTERS -- OPTICAL RECOGNITION (0.2%):              
    78,800  BancTec, Inc.*..........................     1,413,475
                                                      ------------

CONTINUED 
33

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            COMPUTERS -- PERIPHERAL EQUIPMENT (0.1%):             
    78,600  Mylex Corp.*............................  $    456,863
    30,800  Printronix, Inc.*.......................       431,200
                                                      ------------
                                                           888,063
                                                      ------------
            COMPUTERS -- SERVICES (2.8%):                         
    82,700  Analysts International Corp.............     1,188,813
    83,800  Bell & Howell Co.*......................     3,168,687
    32,000  CheckFree Holdings Corp.*...............       882,000
    33,000  Computer Horizons Corp.*................       455,813
    66,500  Computer Task Group, Inc................     1,130,500
    67,600  DBT Online, Inc.*.......................     2,213,900
    60,150  Factset Research Systems*...............     3,405,993
   148,800  PSINet, Inc.* (c).......................     6,509,999
    25,000  Sykes Enterprises, Inc.*................       834,375
                                                      ------------
                                                        19,790,080
                                                      ------------
            CONSTRUCTION (0.1%):                                  
    84,200  Morrison Knudsen Corp.*.................       868,313
                                                      ------------
            CONSULTING SERVICES (0.3%):                           
    80,000  USWeb Corp.* (c)........................     1,775,000
                                                      ------------
            CONSUMER NON-DURABLE (0.2%):                          
   107,900  Wolverine World Wide, Inc...............     1,510,600
                                                      ------------
            CONSUMER PRODUCTS -- MISCELLANEOUS (0.7%):            
    50,000  Department 56, Inc.*....................     1,343,750
   105,700  Jostens, Inc............................     2,226,306
    43,500  Oneida, Ltd.............................     1,223,438
                                                      ------------
                                                         4,793,494
                                                      ------------
            CONTAINERS -- PAPER & PLASTIC (0.4%):                 
    45,000  ACX Technologies, Inc.*.................       731,250
   110,700  Longview Fibre Co.......................     1,729,688
                                                      ------------
                                                         2,460,938
                                                      ------------
            COSMETICS & TOILETRIES (0.2%):                        
   105,000  Playtex Products, Inc.*.................     1,634,063
                                                      ------------
            DATA PROCESSING & REPRODUCTION (0.7%):                
    39,600  Choicepoint, Inc.*......................     2,658,150
    50,000  CSG Systems International, Inc.*........     1,309,375
    85,200  Pegasystems, Inc.* (c)..................       873,300
                                                      ------------
                                                         4,840,825
                                                      ------------
            DIVERSIFIED (1.2%):                                   
    38,400  Clarcor, Inc............................       736,800
    65,400  Federal Signal Corp.....................     1,385,663
    60,800  Gencorp, Inc............................     1,535,199
    41,700  Griffon Corp.*..........................       325,781
    54,900  Imation Corp.*..........................     1,362,206
    35,025  Manitowoc Co., Inc......................     1,457,916
    45,900  MascoTech, Inc..........................       777,431
    50,000  Triarc Cos., Inc.* (c)..................     1,062,500
                                                      ------------
                                                         8,643,496
                                                      ------------


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            ELECTRICAL & ELECTRONIC (0.2%):                       
    40,400  Sigcorp, Inc............................  $  1,153,925
                                                      ------------
            ELECTRICAL COMPONENTS -- SEMICONDUCTORS (2.5%):       
   328,300  Cypress Semiconductor Corp.*............     5,416,949
   136,700  General Semiconductor, Inc.*............     1,247,388
   189,500  International Rectifier Corp.*..........     2,522,719
   100,000  MEMC Electronic Materials, Inc.*........     1,218,750
    72,000  PMC-Sierra, Inc.*.......................     4,243,500
    87,100  Unitrode Corp.*.........................     2,498,681
                                                      ------------
                                                        17,147,987
                                                      ------------
            ELECTRICAL EQUIPMENT (0.4%):                          
    40,500  C&D Technologies, Inc...................     1,240,313
    27,100  United Illuminating Co..................     1,150,056
    23,448  World Access, Inc.*.....................       331,203
                                                      ------------
                                                         2,721,572
                                                      ------------
            ELECTRONIC -- MANUFACTURING & MACHINERY (0.7%):       
    80,000  Kulicke & Soffa Industries, Inc.*.......     2,145,000
    55,600  PRI Automation, Inc.* (c)...............     2,015,500
    25,000  Watkins-Johnson Co......................       737,500
                                                      ------------
                                                         4,898,000
                                                      ------------
            ELECTRONIC -- MILITARY (0.1%):                        
    36,100  United Industrial Corp..................       399,356
                                                      ------------
            ELECTRONIC -- MISCELLANEOUS COMPONENTS (2.3%):        
    88,000  BMC Industries, Inc.....................       907,500
    45,000  CTS Corp................................     3,149,999
    38,900  Hadco Corp.*............................     1,546,275
    53,500  Innovex, Inc............................       749,000
    62,500  Littlefuse, Inc.*.......................     1,203,125
    57,000  Oak Industries, Inc.*...................     2,490,188
    55,000  OEA, Inc................................       488,125
    30,000  Park Electrochemical Corp...............       862,500
    65,000  Photronics Corp.*.......................     1,592,500
    50,000  Plexus Corp.*...........................     1,506,250
    28,800  RadiSys Corp.*..........................     1,119,600
                                                      ------------
                                                        15,615,062
                                                      ------------
            ELECTRONIC COMPONENTS/INSTRUMENTS (1.7%):             
    30,000  Applied Micro Circuits Corp.*...........     2,467,500
    88,600  Artesyn Technologies, Inc.*.............     1,965,813
    64,300  Cable Design Technologies*..............       992,631
    50,000  Lam Research Corp.*.....................     2,334,375
    20,000  QLogic Corp.*...........................     2,639,999
    46,000  Technitrol, Inc.........................     1,483,500
                                                      ------------
                                                        11,883,818
                                                      ------------
            ELECTRONIC MEASURING EQUIPMENT (0.5%):                
   125,000  Tektronix, Inc. (c).....................     3,773,438
                                                      ------------
            ELECTRONIC MEASURING MACHINES (0.3%):                 
    99,100  Genrad, Inc.*...........................     2,062,519
                                                      ------------

CONTINUED 
34

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            ELECTRONIC PARTS -- DISTRIBUTION (0.6%):              
   103,000  Kent Electronics Corp.*.................  $  2,040,688
    61,800  Marshall Industries*....................     2,220,937
                                                      ------------
                                                         4,261,625
                                                      ------------
            ELECTRONIC PRODUCTS -- MISCELLANEOUS (0.6%):          
    40,000  Aeroflex, Inc.*.........................       790,000
   100,300  Allen Telecom, Inc.*....................     1,078,224
    40,500  Kopin Corp.*............................       969,469
    87,500  MagneTek, Inc.*.........................       924,219
    33,000  Recoton Corp.* (c)......................       300,094
                                                      ------------
                                                         4,062,006
                                                      ------------
            ENGINEERING (0.2%):                                   
    40,100  Jacobs Engineering Group, Inc.*.........     1,523,800
                                                      ------------
            ENGINEERING -- RESEARCH & DEVELOPMENT SERVICES (0.1%):
    19,490  URS Corp.*..............................       571,301
                                                      ------------
            ENTERTAINMENT (0.3%):                                 
    70,500  Acclaim Entertainment* (c)..............       449,438
    78,900  Vail Resorts, Inc.* (c).................     1,380,750
                                                      ------------
                                                         1,830,188
                                                      ------------
            FERTILIZERS (0.3%):                                   
    39,900  The Scotts Company*.....................     1,900,238
                                                      ------------
            FINANCIAL -- CONSUMER LOANS (0.6%):                   
   190,000  AmeriCredit Corp.*......................     3,040,000
   136,500  Arcadia Financial Ltd.*.................     1,057,875
                                                      ------------
                                                         4,097,875
                                                      ------------
            FINANCIAL -- INVESTMENT BANKER/BROKER (4.3%):         
    23,500  Advest Group, Inc.......................       468,531
    60,000  Ameritrade Holding Corp. - Class A*          6,359,999
            (c).....................................              
    40,000  Dain Rauscher Corp......................     2,165,000
   125,000  E*Trade Group, Inc.*....................     4,992,187
    75,000  Everen Capital Corp.....................     2,235,938
    87,700  Hambrecht & Quist Group*................     3,255,863
    71,800  Investment Technology Group, Inc........     2,324,525
    60,000  Jefferies Group, Inc....................     1,800,000
   113,225  Morgan Keegan, Inc......................     2,144,198
    35,000  National Discount Brokers Group* (c)....     2,030,000
    34,630  Southwest Securities Group, Inc.........     2,484,703
                                                      ------------
                                                        30,260,944
                                                      ------------
            FINANCIAL -- INVESTMENT MANAGEMENT COS. (0.5%):       
   100,000  Eaton Vance Corp........................     3,443,750
                                                      ------------
            FINANCIAL -- LEASING COMPANY (0.5%):                  
    43,300  Cort Business Services Corp.*...........     1,036,494
    39,700  DVI, Inc.*..............................       679,863
    53,400  Rental Service Corp.*...................     1,528,574
                                                      ------------
                                                         3,244,931
                                                      ------------


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            FINANCIAL -- MORTGAGE & RELATED SERVICES (0.1%):      
    47,600  Triad Guaranty, Inc.*...................  $    853,825
                                                      ------------
            FINANCIAL -- SAVINGS & LOAN (0.6%):                   
   100,686  Downey Financial Corp...................     2,208,799
    70,000  FirstFed Financial Corp.*...............     1,347,500
    40,000  Westcorp................................       450,000
                                                      ------------
                                                         4,006,299
                                                      ------------
            FINANCIAL SERVICES -- DIVERSIFIED (0.5%):             
    34,600  Healthcare Financial Partners*..........     1,185,050
    50,000  Paymentech, Inc.*.......................     1,268,750
   130,000  Phoenix Investment Partners (c).........     1,186,250
                                                      ------------
                                                         3,640,050
                                                      ------------
            FOOD -- DIVERSIFIED (0.4%):                           
    83,200  Ralcorp Holding, Inc.*..................     1,336,400
    60,000  The Earthgrains Co......................     1,548,750
                                                      ------------
                                                         2,885,150
                                                      ------------
            FOOD -- FLOUR & GRAIN (0.2%):                         
    50,600  International Multi-Foods Corp..........     1,141,663
                                                      ------------
            FOOD -- MEAT PRODUCTS (0.1%):                         
    20,000  Pilgrim's Pride Corp....................       600,000
                                                      ------------
            FURNITURE (0.1%):                                     
    47,700  O' Sullivan Industries*.................       810,900
                                                      ------------
            GLASS PRODUCTS (0.2%):                                
    36,200  Libbey, Inc.............................     1,049,800
                                                      ------------
            HAZARDOUS WASTE DISPOSAL (0.2%):                      
    62,500  Safety-Kleen Corp.* (c).................     1,132,813
                                                      ------------
            HEALTH CARE (0.4%):                                   
   122,600  IDEXX Laboratories, Inc.*...............     2,858,113
                                                      ------------
            HOTELS & LODGING (0.4%):                              
   100,000  Prime Hospitality Corp.*................     1,200,000
    79,900  Red Roof Inns, Inc.*....................     1,433,206
                                                      ------------
                                                         2,633,206
                                                      ------------
            INDUSTRIAL -- AUTOMOTIVE/ROBOTICS (0.4%):             
    56,000  Esterline Technologies Corp.*...........       805,000
    86,700  Gerber Scientific, Inc..................     1,912,819
                                                      ------------
                                                         2,717,819
                                                      ------------
            INSTRUMENTS -- CONTROL (0.6%):                        
    98,500  Roper Industries, Inc...................     3,152,000
    52,000  Watts Industries, Inc. - Class A........       997,750
                                                      ------------
                                                         4,149,750
                                                      ------------
            INSTRUMENTS -- SCIENTIFIC (1.2%):                     
    76,500  Dionex Corp.*...........................     3,098,250
   145,000  EG&G, Inc...............................     5,165,624
                                                      ------------
                                                         8,263,874
                                                      ------------

CONTINUED 
35

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            INSURANCE -- ACCIDENT & HEALTH (0.3%):                
    76,500  Arm Financial Group, Inc. - Class A.....  $    650,250
    19,000  Penn Treaty American Corp.*.............       457,188
    16,600  RLI Corp................................       643,250
                                                      ------------
                                                         1,750,688
                                                      ------------
            INSURANCE -- BROKERS (1.0%):                          
    59,100  Arthur J. Gallagher & Co................     2,925,450
    40,000  Blanch (E.W.) Holdings, Inc.............     2,727,500
    47,200  Hilb, Rogal & Hamilton Co...............     1,053,150
                                                      ------------
                                                         6,706,100
                                                      ------------
            INSURANCE -- LIFE (1.1%):                             
   113,800  American Heritage Life Investment            2,788,100
            Corp....................................              
    50,000  Amerus Life Holdings, Inc...............     1,350,000
    51,000  Delphi Financial Group*.................     1,829,625
    74,500  Life USA Holding, Inc...................     1,508,625
                                                      ------------
                                                         7,476,350
                                                      ------------
            INSURANCE -- MULTI-LINE (0.7%):                       
   126,000  Enhance Financial Services Group,            2,488,500
            Inc.....................................              
   119,800  FBL Financial Group, Inc. - Class A.....     2,336,100
                                                      ------------
                                                         4,824,600
                                                      ------------
            INSURANCE -- PROPERTY & CASUALTY (1.9%):              
    38,000  Acceptance Insurance Cos.*..............       572,375
    60,278  Fidelity National Financial, Inc........     1,265,838
    60,000  First American Financial Corp...........     1,072,500
    65,000  Foremost Corporation of America.........     1,430,000
    32,300  FPIC Insurance Group, Inc.*.............     1,566,549
   100,000  Frontier Insurance Group, Inc...........     1,537,500
   133,700  HCC Insurance Holdings, Inc.............     3,033,318
    41,700  MMI Cos., Inc...........................       703,688
    30,000  Philadelphia Consolidated Holding              735,000
            Corp.* (c)..............................              
    40,500  SCPIE Holdings, Inc.....................     1,321,313
                                                      ------------
                                                        13,238,081
                                                      ------------
            INTERNET CONTENT (0.3%):                              
    26,500  DoubleClick Inc.* (c)...................     2,424,750
                                                      ------------
            INTERNET SOFTWARE (0.6%):                             
    17,000  Concentric Network Corp.*...............       675,750
    13,500  EarthLink Network, Inc.*................       829,406
    21,000  Exodus Communications, Inc.* (c)........     2,518,688
                                                      ------------
                                                         4,023,844
                                                      ------------
            LASERS -- SYSTEMS/COMPONENTS (2.4%):                  
    83,900  Coherent, Inc.*.........................     1,562,638
    36,900  Electro Scientific Industries, Inc.*....     1,541,728
   170,000  VISX, Inc.*.............................    13,461,874
                                                      ------------
                                                        16,566,240
                                                      ------------
            LEISURE & RECREATION PRODUCTS (0.5%):                 
    80,000  Oakley, Inc.* (c).......................       570,000


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         

LEISURE & RECREATION PRODUCTS (CONTINUED)               

                                                                [Download Table]
                                                               
 55,000  Polaris Industries, Inc.................  $  2,392,500
 50,000  Sturm, Ruger & Co., Inc.................       534,375
                                                   ------------
                                                      3,496,875
                                                   ------------
         LEISURE & RECREATION SERVICES (0.1%):                 
 32,100  Carmike Cinemas, Inc.*..................       511,594
                                                   ------------
         LEISURE & RECREATION/GAMING (0.4%):                   
104,400  Aztar Corp.*............................       959,175
 44,900  Hollywood Park, Inc.*...................       763,300
 56,000  Station Casinos, Inc.*..................     1,141,000
                                                   ------------
                                                      2,863,475
                                                   ------------
         LINEN SUPPLY & RELATED (0.1%):                        
 27,900  Unifirst Corp...........................       512,663
                                                   ------------
         MACHINE TOOLS & RELATED PRODUCTS (0.3%):              
 80,000  Applied Power, Inc......................     2,185,000
                                                   ------------
         MACHINERY -- CONSTRUCTION/MINING (0.5%):              
 35,150  Commercial Intertech Corp...............       560,203
 92,500  JLG Industries, Inc.....................     1,884,687
 35,000  Terex Corp.* (c)........................     1,065,313
                                                   ------------
                                                      3,510,203
                                                   ------------
         MACHINERY -- ELECTRICAL (0.4%):                       
 76,000  Baldor Electric Co......................     1,510,500
 45,000  Smith (A.O.) Corp.......................     1,243,125
                                                   ------------
                                                      2,753,625
                                                   ------------
         MACHINERY -- GENERAL INDUSTRIAL (1.0%):               
 56,000  Albany International Corp., Class A.....     1,162,000
 42,725  Applied Industrial Technology, Inc......       811,775
 53,100  Chart Industries, Inc...................       411,525
 52,900  Global Industrial Technologies, Inc.*...       638,106
 46,500  Graco, Inc..............................     1,365,938
 62,425  Idex Corp...............................     2,052,222
 83,566  Paxar Corp.*............................       752,094
                                                   ------------
                                                      7,193,660
                                                   ------------
         MACHINERY -- MATERIAL HANDLING (0.2%):                
 15,000  Nacco Industries, Inc...................     1,102,500
                                                   ------------
         MEDICAL -- BIOMEDICAL/GENETIC (1.4%):                 
 55,000  Affymetrix, Inc.*.......................     2,715,624
 67,100  Alkermes, Inc.* (c).....................     1,551,688
107,300  Creative Biomolecules, Inc.*............       388,963
 25,000  IDEC Pharmaceuticals Corp.*.............     1,926,563
 93,400  Millennium Pharmaceuticals*.............     3,362,399
                                                   ------------
                                                      9,945,237
                                                   ------------
         MEDICAL -- BIOTECHNOLOGY (0.2%):                      
 40,000  Biomatrix, Inc.* (c)....................       865,000
 31,900  Cryolife, Inc.*.........................       390,775
                                                   ------------
                                                      1,255,775
                                                   ------------

CONTINUED 
36

N-30D 38th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 38th
Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            MEDICAL -- DRUGS (1.3%):                              
    60,000  Alpharma, Inc. (c)......................  $  2,133,749
   100,000  Carter-Wallace, Inc.....................     1,818,750
    62,700  Guilford Pharmaceuticals*...............       799,425
    30,000  Jones Pharma Inc........................     1,181,250
   106,200  Ligand Pharmaceuticals*.................     1,181,475
    67,950  Medicus Pharmaceuticals, Inc.*..........     1,724,231
                                                      ------------
                                                         8,838,880
                                                      ------------
            MEDICAL -- HEALTH MEDICAL ORGANIZATION (0.5%):        
   149,800  Mid Atlantic Medical Services, Inc.*....     1,479,275
    86,250  Sierra Health Services, Inc.*...........     1,245,234
    53,000  United Wisconsin Services*..............       424,000
                                                      ------------
                                                         3,148,509
                                                      ------------
            MEDICAL -- HOSPITAL (0.3%):                           
    40,300  Curative Health Services, Inc.*.........       221,650
   228,792  Mariner Post-Acute Network, Inc.*.......       128,696
   177,200  Paracelsus Health*......................       232,575
    60,000  Pediatrix Medical Group, Inc.* (c)......     1,275,000
                                                      ------------
                                                         1,857,921
                                                      ------------
            MEDICAL -- HOSPITAL SERVICES (0.5%):                  
    92,800  Magellan Health Services, Inc.*.........       928,000
    95,700  Quest Diagnostics, Inc.*................     2,619,788
                                                      ------------
                                                         3,547,788
                                                      ------------
            MEDICAL -- NURSING HOMES (0.5%):                      
    36,700  American Retirement Corp.* (c)..........       458,750
   335,000  Beverly Enterprises, Inc.*..............     2,700,938
    80,100  Integrated Health Services, Inc.*.......       640,800
                                                      ------------
                                                         3,800,488
                                                      ------------
            MEDICAL -- OUTPATIENT/HOME CARE (0.8%):               
   165,500  Apria Healthcare Group, Inc.*...........     2,813,500
   138,200  Coram Healthcare Corp.*.................       241,850
   112,800  Genesis Health Ventures, Inc.*..........       338,400
   196,100  NovaCare, Inc.*.........................       294,150
   118,000  Orthodontic Centers of America*.........     1,666,750
                                                      ------------
                                                         5,354,650
                                                      ------------
            MEDICAL -- WHOLESALE DRUG (0.3%):                     
    70,667  Bindley Western Industries, Inc.........     1,629,750
    12,000  Express Scripts, Inc. - Class A*........       722,250
                                                      ------------
                                                         2,352,000
                                                      ------------
            MEDICAL EQUIPMENT & SUPPLIES (0.4%):                  
    50,000  Conmed Corp.*...........................     1,531,250
    63,800  Respironics, Inc.*......................       964,975
                                                      ------------
                                                         2,496,225
                                                      ------------
            MEDICAL INSTRUMENTS (0.4%):                           
    93,100  Acuson Corp.*...........................     1,600,156
    43,000  OEC Medical Systems, Inc.*..............     1,053,500
                                                      ------------
                                                         2,653,656
                                                      ------------


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            MEDICAL PRODUCTS (1.0%):                              
    44,000  Diagnostic Products Corp................  $  1,215,500
    86,800  Haemonetics Corp.*......................     1,741,425
    27,500  Maxxim Medical, Inc.*...................       641,094
   103,400  Owens & Minor, Inc......................     1,137,400
    53,000  West Pharmaceutical Services, Inc.......     2,080,250
                                                      ------------
                                                         6,815,669
                                                      ------------
            MEDICAL SUPPLIES (0.4%):                              
    65,800  Ocular Sciences, Inc.*..................     1,143,275
    78,500  Sola International, Inc.*...............     1,525,844
                                                      ------------
                                                         2,669,119
                                                      ------------
            MEDICAL/DENTAL SUPPLIES (0.5%):                       
    91,900  Ballard Medical Products................     2,142,419
    46,500  Cooper Cos., Inc.*......................     1,159,594
    62,200  Sunrise Medical, Inc.*..................       443,175
                                                      ------------
                                                         3,745,188
                                                      ------------
            METAL -- IRON (0.1%):                                 
    14,200  Cleveland Cliffs, Inc...................       459,725
                                                      ------------
            METAL -- MISCELLANEOUS (0.1%):                        
    37,400  Brush Wellman, Inc......................       677,875
                                                      ------------
            METAL -- NON-FERROUS (0.2%):                          
   100,000  Kaiser Aluminum Corp.*..................       887,500
    34,000  RTI International Metals, Inc.* (c).....       499,375
                                                      ------------
                                                         1,386,875
                                                      ------------
            METAL -- PROCESSING & FABRICATION (0.6%):             
    35,233  Commercial Metals Co....................     1,004,141
    77,700  Mueller Industries, Inc.*...............     2,636,943
    32,500  Wolverine Tube, Inc.*...................       816,563
                                                      ------------
                                                         4,457,647
                                                      ------------
            METAL PRODUCTS -- DISTRIBUTION (0.1%):                
    25,000  Reliance Steel & Aluminum Co............       975,000
                                                      ------------
            OFFICE SUPPLIES & FORMS (0.7%):                       
    38,400  American Business Products, Inc.........       585,600
    34,000  Daisytek International Corp.*...........       554,625
    62,900  John H. Harland Co......................     1,254,069
    33,800  New England Business Service, Inc.......     1,043,575
    41,500  Standard Register Co....................     1,276,125
                                                      ------------
                                                         4,713,994
                                                      ------------
            OIL & GAS (0.1%):                                     
   129,355  Santa Fe Snyder Corp.*..................       986,332
                                                      ------------
            OIL & GAS -- DRILLING (0.2%):                         
    34,000  Atwood Oceanics, Inc.*..................     1,062,500
                                                      ------------
            OIL -- FIELD SERVICES (0.9%):                         
    57,700  Hanover Compressor Co.*.................     1,853,614
    49,600  Oceaneering International, Inc.*........       799,801
    49,700  RPC Energy Services, Inc................       434,875
    29,500  Seacor Holdings, Inc.*..................     1,578,250

CONTINUED 
37

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         

OIL -- FIELD SERVICES (CONTINUED)                       

                                                                [Download Table]
                                                                  
    54,600  Seitel, Inc.*...........................  $    883,838
    46,600  Veritas DGC, Inc.*......................       853,363
                                                      ------------
                                                         6,403,741
                                                      ------------
            OIL -- PRODUCTION/PIPELINE (0.2%):                    
    40,000  Northern Border Partners, LP............     1,242,500
                                                      ------------
            OIL -- U.S. EXPLORATION & PRODUCTION (1.5%):          
    48,200  Berry Petroleum Co......................       671,788
    44,600  Cabot Oil & Gas Corp....................       830,675
    83,850  Cross Timbers Oil Co....................     1,247,268
    64,700  Forest Oil Corp.*.......................       812,794
    25,000  Houston Exploration Co.*................       473,438
    28,700  HS Resources, Inc.*.....................       423,325
    56,900  KCS Energy, Inc.........................        35,563
    54,200  Louis Dreyfus Natural Gas*..............     1,168,688
    76,100  Newfield Exploration Co.*...............     2,164,093
    32,000  Stone Energy Corp.*.....................     1,355,999
    32,836  Swift Energy Co.*.......................       350,935
   109,900  Vintage Petroleum, Inc.*................     1,181,424
                                                      ------------
                                                        10,715,990
                                                      ------------
            OIL REFINING (0.1%):                                  
    57,200  Tesoro Petroleum Corp.*.................       911,625
                                                      ------------
            PAPER & RELATED PRODUCTS (0.4%):                      
    76,500  Buckeye Technologies, Inc.*.............     1,161,844
    50,200  Chesapeake Corp.........................     1,879,362
                                                      ------------
                                                         3,041,206
                                                      ------------
            PHARMACEUTICALS (0.2%):                               
    25,000  Dura Pharmaceuticals*...................       298,438
    31,627  Priority Healthcare Corp., Class A*.....     1,091,131
                                                      ------------
                                                         1,389,569
                                                      ------------
            POLLUTION CONTROL (0.2%):                             
    34,700  Imco Recycling, Inc.....................       605,081
    20,700  Ionics, Inc.*...........................       755,550
                                                      ------------
                                                         1,360,631
                                                      ------------
            PRINTING -- COMMERCIAL (0.4%):                        
    26,500  Consolidated Graphics, Inc.*............     1,325,000
    73,600  Mail-Well, Inc.* (c)....................     1,191,400
                                                      ------------
                                                         2,516,400
                                                      ------------
            PROTECTION -- SAFETY (0.2%):                          
    42,100  Borg-Warner Security Corp.*.............       855,156
    48,400  Checkpoint Systems, Inc.* (c)...........       432,575
                                                      ------------
                                                         1,287,731
                                                      ------------
            PUBLISHING -- NEWSPAPERS (0.1%):                      
    36,000  Journal Register Co.*...................       810,000
                                                      ------------

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            PUBLISHING -- PERIODICALS (0.3%):                     
    38,500  Big Flower Holdings, Inc.*..............  $  1,227,187
    41,100  Playboy Enterprises, Inc.*..............     1,091,719
                                                      ------------
                                                         2,318,906
                                                      ------------
            REAL ESTATE (0.3%):                                   
    44,000  CB Richard Ellis Services*..............     1,094,500
    46,000  Webb (Del) Corp.........................     1,098,250
                                                      ------------
                                                         2,192,750
                                                      ------------
            RESTAURANTS (1.1%):                                   
    35,000  Applebee's International, Inc...........     1,054,375
   100,000  Foodmaker, Inc.*........................     2,837,499
    79,300  Host Marriott Services Corp.*...........       644,313
    69,700  Luby's Cafeteria, Inc...................     1,045,500
    67,900  Ruby Tuesday, Inc.......................     1,290,100
    40,000  Sbarro, Inc.*...........................     1,082,500
                                                      ------------
                                                         7,954,287
                                                      ------------
            RETAIL -- APPAREL/SHOES (1.6%):                       
    57,800  Ann Taylor Stores Corp.*................     2,600,999
    49,800  Brown Shoe Company, Inc.................     1,083,150
    55,500  Burlington Coat Factory Warehouse            1,071,844
            Corp.*..................................              
    23,000  Cole (Kenneth) Productions, Inc.*.......       641,125
    69,500  Footstar, Inc.*.........................     2,584,531
    55,500  Genesco, Inc.*..........................       808,219
    40,000  Talbots Inc.............................     1,525,000
    23,000  The Buckle, Inc.*.......................       667,000
                                                      ------------
                                                        10,981,868
                                                      ------------
            RETAIL -- CONSUMER ELECTRONICS (0.1%):                
    73,900  Handleman Co.*..........................       872,944
                                                      ------------
            RETAIL -- DISCOUNT (0.5%):                            
    27,000  99 Cents Only Stores*...................     1,348,313
    58,000  Shopko Stores, Inc.*....................     2,102,500
                                                      ------------
                                                         3,450,813
                                                      ------------
            RETAIL -- GENERAL MERCHANDISE (0.2%):                 
    55,900  Cash America Intl., Inc.................       719,713
    36,500  Russ Berrie & Co., Inc..................       903,375
                                                      ------------
                                                         1,623,088
                                                      ------------
            RETAIL -- HOME FURNISHINGS (1.0%):                    
    81,500  Bombay Co., Inc.*.......................       626,531
   128,900  Heilig Meyers Co........................       878,131
   149,300  La-Z-Boy, Inc...........................     3,433,901
    44,200  Linens 'n Things, Inc.*.................     1,933,750
                                                      ------------
                                                         6,872,313
                                                      ------------
            RETAIL -- JEWELRY (0.8%):                             
   102,300  Claire's Stores, Inc....................     2,621,438
    70,000  Zale Corp.*.............................     2,800,000
                                                      ------------
                                                         5,421,438
                                                      ------------

CONTINUED 
38

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Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            RETAIL -- MAIL ORDER (0.2%):                          
    51,500  Enesco Group, Inc.......................  $  1,190,938
                                                      ------------
            RETAIL -- REGIONAL DEPARTMENT STORES (0.1%):          
    40,000  Value City Department Stores, Inc.*.....       490,000
                                                      ------------
            RETAIL -- SUPERMARKETS (0.2%):                        
    80,000  Ruddick Corp............................     1,600,000
                                                      ------------
            RUBBER & PLASTICS (0.1%):                             
    34,300  Furon Co................................       651,700
                                                      ------------
            SHOES & RELATED APPAREL (0.6%):                       
    90,000  Reebok International Ltd.* (c)..........     1,676,250
   115,200  Stride Rite Corp........................     1,188,000
    20,000  Timberland Co., Class A*................     1,361,250
                                                      ------------
                                                         4,225,500
                                                      ------------
            SOAP & CLEANING PREPARATIONS (0.3%):                  
    54,800  Church & Dwight Co., Inc................     2,383,800
                                                      ------------
            STEEL -- PIPES & TUBES (0.1%):                        
    31,900  Quanex Corp.............................       909,150
                                                      ------------
            STEEL -- PRODUCERS (0.6%):                            
   229,200  Armco Inc.*.............................     1,518,449
    41,800  Carpenter Technology....................     1,193,913
    39,300  Lone Star Technologies, Inc.* (c).......       697,575
    62,700  National Steel Corp.....................       525,113
                                                      ------------
                                                         3,935,050
                                                      ------------
            TECHNOLOGY (0.2%):                                    
    53,400  Security Dynamics Technologies, Inc.*...     1,134,750
    25,000  Structural Dynamics*....................       464,063
                                                      ------------
                                                         1,598,813
                                                      ------------
            TELECOMMUNICATIONS -- CELLULAR (0.5%):                
    93,500  American Mobile Satelllite Corp.* (c)...     1,531,063
    69,000  VoiceStream Wireless Corp.* (c).........     1,962,187
                                                      ------------
                                                         3,493,250
                                                      ------------
            TELECOMMUNICATIONS -- EQUIPMENT (1.8%):               
    67,500  DSP Communications Inc (c)..............     1,949,062
   120,200  InterVoice, Inc.*.......................     1,735,388
    78,600  Network Equipment Technologies, Inc.*...       776,175
    58,800  Plantronics, Inc.*......................     3,829,349
    75,000  Superior Telecom, Inc. (c)..............     1,875,000
    22,300  Tech-Sym Corp.*.........................       529,625
    25,000  Terayon Communications Systems, Inc.*        1,396,875
            (c) ....................................              
    54,300  Titan Corp.*............................       597,300
                                                      ------------
                                                        12,688,774
                                                      ------------
            TELECOMMUNICATIONS -- SATELLITE (0.2%):               
    10,000  EchoStar Communications Corp.,               1,534,375
            Class A* (c)............................              
                                                      ------------


                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         
            TELECOMMUNICATIONS -- SERVICES AND EQUIPMENT (1.6%):  
   100,000  ICG Communications, Inc.*...............  $  2,137,500
    75,000  ITC DeltaCom, Inc.*.....................     2,100,000
    42,700  Mastec, Inc.*...........................     1,206,275
    40,000  Pacific Gateway Exchange, Inc.*.........     1,165,000
    75,000  Premiere Technologies, Inc.*............       862,500
    15,000  Teligent, Inc., Class A*................       897,188
    98,000  Western Wireless Corp. - Class A*.......     2,645,999
                                                      ------------
                                                        11,014,462
                                                      ------------
            TEXTILE -- APPAREL (0.6%):                            
    50,000  Authentic Fitness Corp..................       875,000
   100,000  Burlington Industries, Inc.*............       906,250
    40,000  Kellwood Co.............................     1,085,000
    50,000  Phillips-Van Heusen Corp................       493,750
    33,500  St. John Knits, Inc.....................       979,875
                                                      ------------
                                                         4,339,875
                                                      ------------
            TEXTILE -- HOME FURNISHINGS (0.1%):                   
    24,000  Pillowtex Corp..........................       391,500
                                                      ------------
            TEXTILE -- PRODUCTS (0.3%):                           
    99,900  Collins & Aikman Corp.*.................       761,738
    47,550  Guilford Mills, Inc.....................       496,303
    74,900  Polymer Group, Inc.*....................       880,075
                                                      ------------
                                                         2,138,116
                                                      ------------
            TOOLS -- HAND HELD (0.2%):                            
    35,200  Toro Co.................................     1,386,000
                                                      ------------
            TRANSPORTATION (0.2%):                                
    36,000  Coach USA, Inc.*........................     1,509,750
                                                      ------------
            TRANSPORTATION -- AIR FREIGHT (0.3%):                 
    45,000  Atlas Air, Inc.*........................     1,451,250
    58,900  Pittston Burlington Group...............       559,550
                                                      ------------
                                                         2,010,800
                                                      ------------
            TRANSPORTATION -- AIRLINE (0.5%):                     
    31,900  Alaska Airgroup, Inc.*..................     1,331,825
    95,300  America West Holding Corp. - Class B*...     1,798,788
                                                      ------------
                                                         3,130,613
                                                      ------------
            TRANSPORTATION -- EQUIPMENT & LEASING (0.6%):         
   146,650  Rollins Truck Leasing Corp..............     1,631,481
    49,800  Westinghouse Air Brake Co...............     1,273,013
    32,500  Xtra Corp.*.............................     1,492,969
                                                      ------------
                                                         4,397,463
                                                      ------------
            TRANSPORTATION -- RAILROAD (0.2%):                    
    37,000  Florida East Coast Industries...........     1,637,250
                                                      ------------
            TRANSPORTATION -- SHIPPING (0.1%):                    
    77,800  Overseas Shipholding Group..............     1,001,675
                                                      ------------
            UTILITIES -- ELECTRIC POWER (2.1%):                   
    29,900  Black Hills Corp........................       691,438

CONTINUED 
39

N-30D 41st “Page” of 126 TOC 1st Previous Next ↓Bottom Just 41st
Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                            SECURITY                     MARKET   
  SHARES                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
COMMON STOCKS (CONTINUED)                                         

UTILITIES -- ELECTRIC POWER (CONTINUED)       

                                                                [Download Table]
                                                                  
    29,400  Central Hudson Gas & Electric Corp......  $  1,234,800
    25,200  CILCORP, Inc............................     1,574,999
    37,700  Cleco Corp..............................     1,145,138
    55,200  CMP Group, Inc..........................     1,445,549
    30,000  Commonwealth Energy Systems Co..........     1,260,000
    26,200  Eastern Utilities Assoc.................       763,075
    32,800  Northwestern Corp.......................       793,350
    25,900  Orange & Rockland Utilities.............     1,513,530
    70,700  Public Service New Mexico...............     1,405,163
    23,300  TNP Enterprises, Inc....................       844,625
    55,320  UniSource Energy Corp.*.................       660,383
    40,000  WPS Resources Corp......................     1,200,000
                                                      ------------
                                                        14,532,050
                                                      ------------
            UTILITIES -- GAS DISTRIBUTION (2.0%):                 
    33,150  Atmos Energy Corp.......................       828,750
    15,400  Connecticut Energy Corp.................       593,863
    27,800  Eastern Enterprises.....................     1,105,050
    51,200  Energen Corp............................       953,600
    53,466  Indiana Energy, Inc.....................     1,139,494
    30,400  Laclede Gas Co..........................       706,800
    34,300  New Jersey Resources Corp...............     1,284,106
    38,900  Public Service Co. of North Carolina....     1,137,825
    50,000  Southwest Gas Corp......................     1,431,249
    59,500  Southwestern Energy Co..................       628,469
    49,800  UGI Corp. (c)...........................     1,005,338
    62,600  Wicor, Inc..............................     1,748,887
    24,400  Yankee Energy System, Inc...............       971,425
                                                      ------------
                                                        13,534,856
                                                      ------------
            UTILITIES -- WATER SUPPLY (0.3%):                     
    21,900  Aquarion Co.............................       761,025
    71,600  United Water Resources, Inc.............     1,624,425
                                                      ------------
                                                         2,385,450
                                                      ------------
            WHOLESALE DISTRIBUTION (0.1%):                        
    16,300  Aviation Sales Co.*.....................       643,850
                                                      ------------
            WIRE & CABLE PRODUCTS (0.5%):                         
    42,100  Barnes Group, Inc.......................       915,675
    45,100  Belden, Inc.............................     1,079,581
    77,800  General Cable Corp......................     1,244,800
                                                      ------------
                                                         3,240,056
                                                      ------------
            TOTAL COMMON STOCKS.....................   682,123,320
                                                      ------------


SHARES OR                                                         
PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
INVESTMENT COMPANIES (1.6%):                                      
       104  Dreyfus Cash Management Money Market               104
            Fund....................................              
10,815,124  Federated Prime Value Obligations Money     10,815,124
            Market Fund.............................              
                                                      ------------
            TOTAL INVESTMENT COMPANIES..............    10,815,228
                                                      ------------

SHARES OR                                                         
PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  

SHORT-TERM SECURITIES HELD AS COLLATERAL (6.7%):                  
            COMMERCIAL PAPER (3.7%):                              
 1,800,000  Ameritech Capital Funding Corp., 5.12%,   $  1,794,042
            7/23/99.................................              
   500,000  Bell South Telecommunications, 5.18%,          497,487
            8/4/99..................................              
   975,000  Bell South Telecommunications, 5.16%,          973,729
            7/9/99..................................              
 1,800,000  Cargill Inc., 5.65%, 7/1/99.............     1,800,000
 1,800,000  Coca-Cola Co., 5.13%, 7/30/99...........     1,792,254
 1,500,000  Daimler, 5.14%, 8/11/99.................     1,490,936
 1,500,000  R.R. Donnelley & Sons Co., 5.26%,            1,495,676
            7/20/99.................................              
 1,800,000  Duke Energy, 5.50%, 7/1/99..............     1,800,000
 1,800,000  Ford Motor Credit Corp., 5.18%,              1,795,841
            7/16/99.................................              
 1,000,000  Gannett Co., 5.09%, 7/19/99.............       997,260
 1,500,000  General Electric Capital Corp., 5.10%,       1,490,936
            8/11/99.................................              
 1,500,000  General Motors Acceptance Corp., 5.09%,      1,491,372
            8/9/99..................................              
 1,500,000  GTE Funding Corp., 5.04%, 7/8/99........     1,496,585
 1,500,000  H. J. Heinz Co., 5.14%, 8/19/99.........     1,489,188
 1,800,000  Mobil Corp., 5.50%, 7/1/99..............     1,800,000
 1,800,000  Nestle Capital Corp., 5.23%, 7/1/99.....     1,800,000
 1,800,000  UBS Finance, 5.50%, 7/1/99..............     1,800,000
                                                      ------------
                                                        25,805,306
                                                      ------------
            MASTER NOTE (0.3%):                                   
 2,008,417  General American Masternote, 5.05%,          2,008,417
            7/1/99..................................              
                                                      ------------
            REPURCHASE AGREEMENTS (2.4%):                         
 2,500,340  Chase Securities Inc. 4.90%, 7/1/99          2,500,340
            (Collateralized by $2,501,896 various                 
            Corporate Notes & Bonds, 6.25%-7.25%                  
            6/30/01-5/15/16, market value                         
            $2,500,143).............................              
 3,861,558  Goldman Sachs & Co. 5.20%, 7/1/99            3,861,558
            (Collateralized by $6,225,179 various                 
            Government Agency Securities, 4.50%-                  
            12.50%, 3/15/01-6/20/29, market value                 
            $3,938,220).............................              
10,021,460  J P Morgan Securities, 4.90%, 7/1/99        10,021,460
            (Collateralized by $46,956,993 various                
            Government Agency Securities, 4.50%-                  
            12.50%, 3/15/01-6/20/29, market value                 
            $10,213,002)............................              
                                                      ------------
                                                        16,383,358
                                                      ------------
            TIME DEPOSITS (0.3%):                                 
 1,000,161  Barclays Bank PLC London,                    1,000,161
            5.81%, 7/1/99...........................              
 1,000,163  Canadian Imperial Bank Commerce Cay,         1,000,163
            5.88%, 7/1/99...........................              
                                                      ------------
                                                         2,000,324
                                                      ------------
            TOTAL SHORT-TERM SECURITIES HELD AS                   
            COLLATERAL..............................    46,197,405
                                                      ------------

CONTINUED 
40

N-30D 42nd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 42nd
Kent Funds                                
            SMALL COMPANY GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

SHARES OR                                                          
PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                  DESCRIPTION                    VALUE     
----------  ----------------------------------------  ------------ 
                                                                   
U.S. GOVERNMENT OBLIGATIONS (0.2%):                                
 1,720,000  U.S. Treasury Bill, 4.84%**, 12/23/99     $  1,680,199 
            (b).....................................               
                                                      ------------ 
            TOTAL U.S. GOVERNMENT OBLIGATIONS.......     1,680,199 
                                                      ------------ 
TOTAL INVESTMENTS (COST $587,201,793) (a) --                       
106.8%..............................................   740,816,152 
                                                      ------------ 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (6.8)%.....   (46,851,599)
                                                      ------------ 
TOTAL NET ASSETS -- 100.0%..........................  $693,964,553 
                                                      ------------ 
                                                      ------------ 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $210,800,124 
Unrealized depreciation...........................   (57,185,775)
                                                    ------------ 
Net unrealized appreciation.......................  $153,614,349 
                                                    ------------ 
                                                    ------------ 

(b)  Security has been deposited as initial margin on open futures contract     
(c)  A portion of this security was loaned as of June 30, 1999.                 
*  Non-income producing security                                            
**  Effective yield at purchase                                               
ADR -- American Depositary Receipt                                              

At June 30, 1999 the Fund's open future contracts were as follows:              

                                                                [Download Table]

  # OF                    OPENING                   CURRENT           MARKET    
CONTRACTS              CONTRACT TYPE                POSITION          VALUE     
---------   -----------------------------------  --------------   --------------
                                                                                
    40             Russell 2000, 9/16/99         $    8,927,150   $    9,240,000

SEE NOTES TO FINANCIAL STATEMENTS.
41

N-30D 43rd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 43rd
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (96.9%):                                           
AUSTRALIA (3.7%):                                                
           BANKING (0.8%):                                       
  140,814  National Australia Bank Ltd.............  $  2,330,195
  184,339  Westpac Banking Corp., Ltd..............     1,195,776
                                                     ------------
                                                        3,525,971
                                                     ------------
           BEVERAGES & TOBACCO (0.1%):                           
  136,862  Coca-Cola Amatil Ltd....................       551,614
                                                     ------------
           BREWERY (0.1%):                                       
  170,236  Fosters Brewing Group Ltd...............       479,804
                                                     ------------
           BROADCASTING & PUBLISHING (0.3%):                     
  193,257  News Corp., Ltd.........................     1,648,901
                                                     ------------
           BUILDING PRODUCTS (0.1%):                             
  114,808  Boral Ltd...............................       194,544
   34,780  Hardie (James) Industries Ltd...........        92,087
   80,788  Pioneer International Ltd...............       205,880
                                                     ------------
                                                          492,511
                                                     ------------
           CHEMICALS (0.0%):                                     
   24,206  Orica Ltd...............................       132,201
                                                     ------------
           DIVERSIFIED (0.1%):                                   
   12,073  Smith (Howard) Ltd......................        92,300
   56,346  Southcorp Holdings Ltd..................       227,548
   20,800  Wesfarmers Ltd..........................       187,244
                                                     ------------
                                                          507,092
                                                     ------------
           ENERGY (0.4%):                                        
  170,747  Broken Hill Proprietary Co., Ltd........     1,977,870
                                                     ------------
           ENGINEERING (0.0%):                                   
   22,400  Leighton Holdings Ltd...................        87,480
                                                     ------------
           ENTERTAINMENT (0.0%):                                 
   40,300  Star City Holdings Ltd..................        39,213
   26,100  TABCORP Holdings Ltd....................       175,871
                                                     ------------
                                                          215,084
                                                     ------------
           FOOD PRODUCTS (0.1%):                                 
  109,975  Goodman Fielder Ltd.....................        98,055
   96,331  Woolworths Ltd..........................       320,412
                                                     ------------
                                                          418,467
                                                     ------------
           GAS UTILITY (0.0%):                                   
   26,533  Australian Gas Light Co., Ltd...........       161,402
                                                     ------------
           INDUSTRIAL GOODS & SERVICES (0.1%):                   
   91,818  CSR Ltd.................................       262,554
   88,700  Pacific Dunlop Ltd......................       127,993
                                                     ------------
                                                          390,547
                                                     ------------
           INSURANCE (0.3%):                                     
  105,000  AMP Ltd.................................     1,147,891


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

AUSTRALIA (CONTINUED)                                                           
INSURANCE (CONTINUED)                                     

                                                                [Download Table]
                                                                 
   53,847  GIO Australia Holdings Ltd..............  $    131,164
   34,020  QBE Insurance Group Ltd.................       129,482
                                                     ------------
                                                        1,408,537
                                                     ------------
           MANUFACTURING -- CAPITAL GOODS (0.0%):                
   27,944  Email Ltd. (c)..........................        53,789
                                                     ------------
           METALS (0.0%):                                        
  150,621  M.I.M. Holdings Ltd.....................       106,678
                                                     ------------
           METALS & MINING (0.2%):                               
   17,377  Newcrest Mining Ltd.*...................        39,016
  154,162  Normandy Mining Ltd.....................       102,655
   66,046  North Ltd...............................       133,775
   28,973  Rio Tinto Ltd...........................       475,074
   29,168  Smorgon Steel Group Ltd.*...............        44,212
   10,357  Westralian Sands Ltd....................        22,390
  104,971  WMC Ltd.................................       450,942
                                                     ------------
                                                        1,268,064
                                                     ------------
           OIL & GAS (0.0%):                                     
   52,241  Santos Ltd..............................       171,168
                                                     ------------
           PACKAGING (0.1%):                                     
   58,093  Amcor Ltd...............................       322,928
                                                     ------------
           PHARMACEUTICALS (0.0%):                               
   10,787  Faulding (F.H.) & Co., Ltd..............        65,689
                                                     ------------
           PROPERTY TRUST (0.0%):                                
   31,280  Stockland Trust Group...................        71,432
                                                     ------------
           REAL ESTATE (0.2%):                                   
  117,125  General Property Trust Units............       190,408
   49,072  Lend Lease Corp., Ltd...................       673,770
  111,073  Westfield Trust Units...................       224,829
                                                     ------------
                                                        1,089,007
                                                     ------------
           REAL ESTATE INVESTMENT TRUST (0.0%):                  
   14,411  Schroders Property Fund.................        22,417
                                                     ------------
           RETAIL STORES (0.1%):                                 
  112,336  Coles Myer Ltd..........................       653,603
                                                     ------------
           SERVICES (0.1%):                                      
   20,119  Brambles Industries Ltd.................       530,025
                                                     ------------
           TELECOM EQUIPMENT (0.6%):                             
  493,400  Telstra Corporation Ltd.................     2,827,308
                                                     ------------
                                                       19,179,589
                                                     ------------
AUSTRIA (0.3%):                                                  
           BANKING (0.2%):                                       
    7,585  Bank Austria AG.........................       398,933
                                                     ------------
           BEVERAGES & TOBACCO (0.0%):                           
      700  Oesterreichische Brau-Beteiligungs AG...        31,041
                                                     ------------

CONTINUED 
42

N-30D 44th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 44th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

AUSTRIA (CONTINUED)                                                             

                                                                [Download Table]
                                                                 
           BUILDING PRODUCTS (0.0%):                             
    5,064  Wienerberger Baustoffindustrie AG.......  $    131,134
                                                     ------------
           CHEMICALS (0.0%):                                     
      400  Lenzing AG..............................        22,688
                                                     ------------
           CONSTRUCTION (0.0%):                                  
    1,355  Bau Holding AG..........................        43,319
                                                     ------------
           ELECTRIC UTILITY (0.1%):                              
    2,069  Oesterreichische                               301,279
           Elektrizitaetswirtschafts AG, Class                   
           A*......................................              
                                                     ------------
           ENGINEERING (0.0%):                                   
    1,100  VA Technologie AG.......................        99,657
                                                     ------------
           INSURANCE (0.0%):                                     
      580  EA-Generali AG..........................       106,469
                                                     ------------
           METALS & MINING (0.0%):                               
      175  Radex-Heraklith Industriebeteiligungs            4,737
           AG......................................              
                                                     ------------
           OIL & GAS (0.0%):                                     
    1,840  OMV AG..................................       164,118
                                                     ------------
           PAPER PRODUCTS (0.0%):                                
      900  Mayr-Melnhof Karton AG..................        40,838
                                                     ------------
           STEEL (0.0%):                                         
      800  Boehler-Uddeholm AG.....................        39,593
                                                     ------------
           TRANSPORTATION (0.0%):                                
    1,800  Austrian Airlines.......................        43,437
    1,500  Flughafen Wien AG.......................        62,944
                                                     ------------
                                                          106,381
                                                     ------------
                                                        1,490,187
                                                     ------------
BELGIUM (1.3%):                                                  
           BANKING (0.1%):                                       
   12,520  KBC Bancassurance Holding NV............       742,414
                                                     ------------
           BUILDING PRODUCTS (0.0%):                             
    1,925  Cimenteries CBR Cementbedrijven.........       177,080
                                                     ------------
           CHEMICALS (0.1%):                                     
    8,410  Solvay SA...............................       558,108
                                                     ------------
           ELECTRIC UTILITY (0.2%):                              
    5,840  Tractebel...............................       819,079
                                                     ------------
           ENERGY (0.2%):                                        
    1,897  PetroFina SA............................     1,089,673
                                                     ------------
           GAS & ELECTRIC UTILITY (0.2%):                        
    3,400  Electrabel SA...........................     1,097,481
                                                     ------------
           INDUSTRIAL HOLDING COMPANY (0.1%):                    
    2,000  Groupe Bruxelles Lambert SA.............       338,051
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

BELGIUM (CONTINUED)                                                             

                                                                [Download Table]
                                                                 
           INSURANCE (0.3%):                                     
   35,600  Fortis (B)..............................  $  1,117,921
                                                     ------------
           MERCHANDISING (0.1%):                                 
    4,400  Delhaize-Le Lion SA.....................       374,579
                                                     ------------
           PHARMACEUTICALS (0.0%):                               
    4,000  UCB SA..................................       171,191
                                                     ------------
           TECHNOLOGY (0.0%):                                    
    1,000  Barco NV................................       160,982
                                                     ------------
                                                        6,646,559
                                                     ------------
DENMARK (0.8%):                                                  
           BANKING & FINANCE (0.3%):                             
    4,547  Den Danske Bank.........................       493,155
    4,693  Unidanmark AS, Class A..................       313,224
                                                     ------------
                                                          806,379
                                                     ------------
           BEVERAGES & TOBACCO (0.0%):                           
    3,060  Carlsberg AS, Class A...................       123,391
    2,305  Carlsberg AS, Class B...................        96,151
                                                     ------------
                                                          219,542
                                                     ------------
           COMMERCIAL SERVICES (0.0%):                           
    2,390  ISS International Service System AS,           127,945
           Series B................................              
                                                     ------------
           ENGINEERING (0.0%):                                   
    3,615  FLS Industries AS - Class B.............        93,997
                                                     ------------
           FOOD PRODUCTS (0.0%):                                 
    5,195  Danisco AS..............................       234,765
                                                     ------------
           PHARMACEUTICALS (0.1%):                               
    4,946  Novo Nordisk AS, Class B................       534,366
                                                     ------------
           TELECOMMUNICATIONS (0.1%):                            
   14,000  Tele Danmark AS Class B.................       689,120
                                                     ------------
           TRANSPORTATION & SHIPPING (0.3%):                     
       70  D/S 1912, Class B.......................       620,987
       53  D/S Svendborg AS, Class B...............       656,625
                                                     ------------
                                                        1,277,612
                                                     ------------
                                                        3,983,726
                                                     ------------
FINLAND (1.5%):                                                  
           BANKING & FINANCE (0.1%):                             
   57,106  Merita PLC, Class A.....................       324,494
                                                     ------------
           CHEMICALS (0.0%):                                     
    8,900  Kemira..................................        53,785
                                                     ------------
           DIVERSIFIED (0.0%):                                   
      800  Amer Group Ltd..........................        11,509
    1,792  Instrumentarium Group, Series B.........        72,998
                                                     ------------
                                                           84,507
                                                     ------------

CONTINUED 
43

N-30D 45th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 45th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

FINLAND (CONTINUED)                                                             

                                                                [Download Table]
                                                                 
           ENGINEERING (0.0%):                                   
    5,500  Metra OYJ...............................  $    116,276
                                                     ------------
           FOREST PRODUCTS (0.1%):                               
   13,860  UPM-Kymmene Corp........................       397,358
                                                     ------------
           INSURANCE (0.0%):                                     
      800  Pohjola Insurance Group, Class B........        41,045
    4,300  Sampo Insurance Co......................       124,608
                                                     ------------
                                                          165,653
                                                     ------------
           MACHINERY & EQUIPMENT (0.0%):                         
      500  Kone Corp. - Class B....................        62,392
                                                     ------------
           METALS (0.0%):                                        
    8,700  Outokumpu OYJ...........................        97,796
                                                     ------------
           RETAIL -- GENERAL MERCHANDISE (0.0%):                 
    6,300  Kesko...................................        84,787
    2,250  Stockmann AB-B Share....................        34,225
                                                     ------------
                                                          119,012
                                                     ------------
           TELECOMMUNICATIONS (1.3%):                            
   74,000  Nokia Oyj...............................     6,486,709
                                                     ------------
                                                        7,907,982
                                                     ------------
FRANCE (9.2%):                                                   
           ALUMINUM (0.0%):                                      
    2,000  Pechiney SA - A Shares..................        85,967
                                                     ------------
           AUTO PARTS (0.1%):                                    
    7,345  Valeo SA................................       605,976
                                                     ------------
           AUTOMOTIVE (0.1%):                                    
    3,662  PSA Peugeot Citroen.....................       577,808
                                                     ------------
           BANKING (0.7%):                                       
   14,798  Banque Nationale de Paris...............     1,233,071
   11,664  Paribas.................................     1,307,528
    6,247  Societe Generale........................     1,101,000
                                                     ------------
                                                        3,641,599
                                                     ------------
           BEVERAGES & TOBACCO (0.4%):                           
    6,732  LVMH (Moet Hennessy Louis Vuitton)......     1,970,985
    5,400  Pernod Ricard...........................       361,977
                                                     ------------
                                                        2,332,962
                                                     ------------
           BROADCASTING/CABLE (0.1%):                            
    2,136  Canal Plus..............................       599,382
                                                     ------------
           BUILDING PRODUCTS (0.2%):                             
    1,195  Imetal SA...............................       177,462
    6,721  Lafarge SA..............................       639,055
                                                     ------------
                                                          816,517
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

FRANCE (CONTINUED)                                                              

                                                                [Download Table]
                                                              
        CHEMICALS (0.4%):                                     
 5,932  L'Air Liquide...........................  $    932,921
24,814  Rhone-Poulenc SA........................     1,133,893
                                                  ------------
                                                     2,066,814
                                                  ------------
        COMMERCIAL SERVICES (0.1%):                           
 2,840  Sodexho SA..............................       489,112
                                                  ------------
        COMPUTER SOFTWARE (0.0%):                             
 3,000  Dassault Systems SA.....................        99,157
                                                  ------------
        CONSTRUCTION (0.1%):                                  
 1,466  Bouygues SA.............................       387,486
                                                  ------------
        DEFENSE (0.1%):                                       
   200  Sagem SA................................       133,653
12,325  Thomson CSF.............................       428,342
                                                  ------------
                                                       561,995
                                                  ------------
        DIVERSIFIED (0.6%):                                   
   498  Chargeurs International SA..............        27,733
 7,206  Lagardere S.C.A.........................       268,272
35,464  Vivendi.................................     2,872,815
                                                  ------------
                                                     3,168,820
                                                  ------------
        ELECTRICAL & ELECTRONIC (0.5%):                       
13,037  Alcatel Alsthom.........................     1,835,203
 2,100  Legrand SA..............................       427,504
10,800  Schneider SA............................       606,451
                                                  ------------
                                                     2,869,158
                                                  ------------
        ENERGY (0.9%):                                        
18,067  Elf Aquitane SA.........................     2,651,336
14,700  Total SA, Class B.......................     1,896,481
                                                  ------------
                                                     4,547,817
                                                  ------------
        ENGINEERING (0.0%):                                   
   200  Groupe Gtm..............................        21,450
                                                  ------------
        FINANCE (0.0%):                                       
   546  CPR (Compagnie Parisenne de                     24,359
        Reescompte).............................              
   863  Credit National.........................        45,345
   201  Societe Eurafrance SA*..................       124,786
                                                  ------------
                                                       194,490
                                                  ------------
        FOOD & HOUSEHOLD PRODUCTS (0.1%):                     
 2,600  Eridania Beghin-Say SA..................       372,702
                                                  ------------
        FOOD PRODUCTS (0.8%):                                 
15,318  Carrefour SA............................     2,251,080
 6,600  Etablissements Economiques du Casino....       578,544
 4,821  Groupe Danone...........................     1,242,942
                                                  ------------
                                                     4,072,566
                                                  ------------

CONTINUED 
44

N-30D 46th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 46th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

FRANCE (CONTINUED)                                                              

                                                                [Download Table]
                                                                 
           HEALTH & PERSONAL CARE (1.1%):                        
    4,437  L'OREAL.................................  $  2,999,410
   47,992  Sanofi-Synthelabo SA* (c)...............     2,036,632
                                                     ------------
                                                        5,036,042
                                                     ------------
           INDUSTRIAL GOODS & SERVICES (0.1%):                   
    9,801  Michelin Class B, Registered............       400,965
                                                     ------------
           INDUSTRIAL HOLDING COMPANY (0.3%):                    
    8,380  Lyonnaise des Eaux SA...................     1,511,498
                                                     ------------
           INSURANCE (0.6%):                                     
   23,100  Axa - UAP...............................     2,818,192
    2,000  Cap Gemini (c)..........................       314,332
                                                     ------------
                                                        3,132,524
                                                     ------------
           LEISURE (0.1%):                                       
    2,650  Accor SA................................       665,455
      541  Club Mediterranee SA*...................        57,410
                                                     ------------
                                                          722,865
                                                     ------------
           MACHINE-DIVERSIFIED (0.0%):                           
    1,600  Sidel SA................................       194,539
                                                     ------------
           MEDIA (0.0%):                                         
    1,494  Pathe SA................................       179,340
                                                     ------------
           MEDICAL SUPPLIES (0.0%):                              
      500  Essilor International...................       156,289
                                                     ------------
           MERCHANDISING (0.4%):                                 
    7,085  Pinault Printemps Redoute...............     1,215,814
    1,450  Promodes................................       951,788
                                                     ------------
                                                        2,167,602
                                                     ------------
           MISCELLANEOUS MATERIALS & COMMODITIES (0.2%):         
    6,333  Compagnie de Saint Gobain...............     1,009,048
                                                     ------------
           OFFICE EQUIPMENT & SERVICES (0.1%):                   
    5,700  Bic.....................................       300,673
                                                     ------------
           OIL & GAS (0.0%):                                     
       50  Cie Gen Geophysique*....................         2,656
    1,300  Primagaz Cie............................       113,955
                                                     ------------
                                                          116,611
                                                     ------------
           REAL ESTATE (0.1%):                                   
      247  Gecina..................................        29,166
    1,000  SEFIMEG.................................        69,611
      918  Simco SA................................        77,630
      800  Unibail.................................       102,385
                                                     ------------
                                                          278,792
                                                     ------------
           STEEL (0.0%):                                         
   14,600  Unisor Sacilor SA.......................       217,568
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

FRANCE (CONTINUED)                                                              

                                                                [Download Table]
                                                                 
           TELECOMMUNICATIONS -- SERVICES & EQUIPMENT (1.0%):    
   66,600  France Telecom (c)......................  $  5,031,016
                                                     ------------
           TOBACCO (0.0%):                                       
    3,200  SEITA...................................       184,804
                                                     ------------
                                                       48,151,954
                                                     ------------
GERMANY (9.0%):                                                  
           AUTOMOTIVE (1.3%):                                    
   65,987  DaimlerChrysler AG......................     5,716,254
    1,680  MAN AG..................................        38,116
    7,610  MAN AG..................................       259,768
   19,970  Volkswagen AG...........................     1,278,920
                                                     ------------
                                                        7,293,058
                                                     ------------
           BANKING (1.0%):                                       
   25,168  Bayerische Vereinsbank AG...............     1,635,171
   32,260  Deutsche Bank AG........................     1,967,854
   35,360  Dresdner Bank AG (c)....................     1,382,055
                                                     ------------
                                                        4,985,080
                                                     ------------
           BUILDING PRODUCTS (0.1%):                             
    4,070  Heidelberger Zement AG..................       335,783
                                                     ------------
           CHEMICALS (0.7%):                                     
   39,980  BASF AG.................................     1,766,719
   45,240  Bayer AG................................     1,884,854
                                                     ------------
                                                        3,651,573
                                                     ------------
           CLOTHING (0.1%):                                      
    2,800  Adidas AG...............................       277,928
                                                     ------------
           COMPUTER SOFTWARE (0.3%):                             
    4,003  SAP AG..................................     1,354,045
                                                     ------------
           CONSTRUCTION (0.0%):                                  
    4,730  Hochtief AG.............................       217,555
                                                     ------------
           DIVERSIFIED (0.6%):                                   
    9,440  Preussag AG.............................       507,205
   31,990  VEBA AG.................................     1,880,454
    2,007  Viag AG.................................       947,953
                                                     ------------
                                                        3,335,612
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.5%):                       
   34,770  Siemens AG..............................     2,682,132
                                                     ------------
           ENGINEERING (0.7%):                                   
    2,040  AGIV-AG.................................        46,241
   25,020  Mannesmann AG...........................     3,733,616
                                                     ------------
                                                        3,779,857
                                                     ------------
           GAS & ELECTRIC UTILITY (0.3%):                        
   29,050  RWE AG*.................................     1,344,837
                                                     ------------

CONTINUED 
45

N-30D 47th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 47th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

GERMANY (CONTINUED)                                                             

                                                                [Download Table]
                                                                 
           HEALTH & PERSONAL CARE (0.1%):                        
    7,860  Beiersdorf AG, Series ABC...............  $    522,825
                                                     ------------
           HEALTH CARE (0.1%):                                   
    5,300  Schering AG.............................       561,879
                                                     ------------
           INSURANCE (1.3%):                                     
    5,440  Aachener & Muenchener...................       552,598
   16,870  Allianz AG (c)..........................     4,679,949
    1,000  Axa Colonia Konzern AG..................        95,908
   10,161  Munchener Rueckver AG (c)...............     1,880,939
                                                     ------------
                                                        7,209,394
                                                     ------------
           MACHINERY & EQUIPMENT (0.1%):                         
    3,830  Kloeckner-Humbolt-Deutz AG*.............        26,069
      636  Linde AG................................       381,072
                                                     ------------
                                                          407,141
                                                     ------------
           METALS & MINING (0.1%):                               
    2,480  FAG Kugelfischer Georg Schaefer AG......        25,192
   21,340  Thyssen Krupp AG*.......................       469,417
                                                     ------------
                                                          494,609
                                                     ------------
           PHARMACEUTICALS (0.1%):                               
   13,100  Merck KGaA..............................       426,095
                                                     ------------
           RETAIL -- MAJOR DEPARTMENT STORES (0.2%):             
   17,073  Metro AG................................     1,059,937
                                                     ------------
           RETAIL STORES (0.1%):                                 
      791  Karstadt AG.............................       380,134
                                                     ------------
           RETAIL-GENERAL MERCHANDISE (0.0%):                    
    1,630  Douglas Holding AG......................        73,122
                                                     ------------
           TELECOMMUNICATIONS (1.2%):                            
  148,800  Deutsche Telekom AG.....................     6,245,557
                                                     ------------
           TIRE & RUBBER (0.0%):                                 
    4,870  Continental AG..........................       115,513
                                                     ------------
           TRANSPORTATION (0.1%):                                
   23,580  Lufthansa AG (c)........................       427,500
                                                     ------------
                                                       47,181,166
                                                     ------------
HONG KONG (2.5%):                                                
           AIRLINES (0.0%):                                      
      200  Hong Kong Aircraft Engineering Co.,                387
           Ltd.....................................              
                                                     ------------
           BANKING (0.3%):                                       
   97,973  Bank of East Asia Ltd.*.................       248,133
  108,800  Hang Seng Bank Ltd......................     1,216,506
   14,695  Wing Lung Bank..........................        57,200
                                                     ------------
                                                        1,521,839
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

HONG KONG (CONTINUED)                                                           

                                                                [Download Table]
                                                                 
           DIVERSIFIED (0.2%):                                   
   94,500  Swire Pacific Ltd., Class A.............  $    467,713
  155,500  Wharf Holdings Ltd......................       485,022
                                                     ------------
                                                          952,735
                                                     ------------
           ELECTRIC UTILITY (0.1%):                              
  141,400  CLP Holdings Ltd........................       687,079
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.1%):                       
   67,900  Johnson Electric Holdings Ltd.*.........       280,050
                                                     ------------
           ELECTRICAL EQUIPMENT (0.0%):                          
   65,000  Elec & Eltek International Holdings             11,561
           Ltd.....................................              
                                                     ------------
           GAS UTILITY (0.1%):                                   
  442,454  Hong Kong & China Gas Co., Ltd..........       641,559
                                                     ------------
           HOTELS & LODGING (0.0%):                              
   65,500  Hong Kong & Shanghai Hotels Ltd.........        55,719
   33,000  Miramar Hotel & Investment Ltd.*........        40,194
  120,000  Shangri-La Asia Ltd.....................       148,480
                                                     ------------
                                                          244,393
                                                     ------------
           INDUSTRIAL HOLDING COMPANY (0.5%):                    
  265,000  Hutchison Whampoa Ltd...................     2,399,431
                                                     ------------
           MANUFACTURING -- CONSUMER GOODS (0.0%):               
   20,000  Varitronix International Ltd............        41,631
                                                     ------------
           REAL ESTATE (0.7%):                                   
  133,000  Cheung Kong Holdings Ltd................     1,182,815
  378,048  Hysan Development Co., Ltd..............       570,097
  118,542  New World Development Co., Ltd. (c).....       355,231
  135,136  Sun Hung Kai Properties Ltd.............     1,232,293
                                                     ------------
                                                        3,340,436
                                                     ------------
           REAL ESTATE INVESTMENT TRUST (0.0%):                  
   91,100  Hang Lung Development Co................       112,721
                                                     ------------
           TELECOMMUNICATIONS (0.4%):                            
  864,674  Hong Kong Telecommunications Ltd........     2,245,657
                                                     ------------
           TRANSPORTATION (0.1%):                                
  252,000  Cathay Pacific Airways..................       386,512
                                                     ------------
                                                       12,865,991
                                                     ------------
IRELAND (0.4%):                                                  
           AIRLINES (0.0%):                                      
    7,300  Ryanair Holdings PLC*...................        75,659
                                                     ------------
           BANKING (0.3%):                                       
   59,879  Allied Irish Banks*.....................       787,334
                                                     ------------
           BUILDING PRODUCTS (0.1%):                             
   26,219  C.R.H. PLC*.............................       465,070
                                                     ------------
           CONSUMER GOODS & SERVICES (0.0%):                     
   29,000  Waterford Wedgewood*....................        29,907
                                                     ------------

CONTINUED 
46

N-30D 48th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 48th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

IRELAND (CONTINUED)                                                             

                                                                [Download Table]
                                                                 
           DIVERSIFIED (0.0%):                                   
    3,227  DCC PLC*................................  $     26,291
                                                     ------------
           FINANCE (0.0%):                                       
   13,205  Irish Permanent PLC*....................       139,584
                                                     ------------
           FOOD PRODUCTS (0.0%):                                 
   11,700  Fyffes PLC*.............................        25,338
    7,816  Greencore Group*........................        24,181
    7,300  Kerry Group PLC*........................        86,576
                                                     ------------
                                                          136,095
                                                     ------------
           HOTELS & LODGING (0.0%):                              
    1,900  Jurys Hotel Group PLC*..................        15,088
                                                     ------------
           INDUSTRIAL GOODS & SERVICES (0.0%):                   
   63,500  Smurfit (Jefferson) Group*..............       148,980
                                                     ------------
           INSURANCE (0.0%):                                     
       37  Irish Life PLC*.........................           324
                                                     ------------
           MEDIA (0.0%):                                         
   10,254  Independent Newspapers PLC*.............        49,172
                                                     ------------
           OIL & GAS (0.0%):                                     
    9,100  Tullow Oil PLC*.........................         7,226
                                                     ------------
           PRINTING & PUBLISHING (0.0%):                         
    1,608  Clondalkin Group PLC*...................        10,779
                                                     ------------
           TRANSPORTATION & SHIPPING (0.0%):                     
    1,000  Irish Continental Group PLC*............        12,788
                                                     ------------
                                                        1,904,297
                                                     ------------
ITALY (3.6%):                                                    
           AGRICULTURE (0.0%):                                   
   94,400  Parmalat Finanziaria SpA................       123,637
                                                     ------------
           AUTO PARTS (0.0%):                                    
   72,520  Magneti Marelli SpA.....................        96,103
                                                     ------------
           AUTOMOTIVE (0.2%):                                    
  215,538  Fiat SpA................................       682,395
   70,340  Fiat SpA di Risp., (Non-convertible)           120,053
           (c).....................................              
   90,820  Fiat SpA Preferred (c)..................       145,642
                                                     ------------
                                                          948,090
                                                     ------------
           BANKING (0.6%):                                       
  135,329  Banca Ambrosiano Veneto SpA.............       650,355
   65,650  Banca Ambrosiano Veneto SpA di Risp.,          146,916
           (Non-convertible).......................              
  105,300  Banca Commerciale Italiana (c)..........       768,839
   17,100  Banca Popolare de Milano................       132,084
  264,900  Credito Italiano SpA....................     1,163,766
   11,723  Riunione Adriatica di Sicurta SpA di            98,893
           Risp., (Non-convertible)................              
                                                     ------------
                                                        2,960,853
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

ITALY (CONTINUED)                                                               

                                                                [Download Table]
                                                               
         BROADCASTING & PUBLISHING (0.1%):                     
 75,600  Mediaset SpA (c)........................  $    672,052
                                                   ------------
         BUILDING PRODUCTS (0.0%):                             
  2,090  Cementir SpA............................         2,220
 10,950  Italcementi SpA (c).....................       138,897
    900  Italcementi SpA di Risp.,                        4,511
         (Non-convertible).......................              
                                                   ------------
                                                        145,628
                                                   ------------
         CHEMICALS (0.1%):                                     
165,340  Montedison SpA (c)......................       269,408
  6,656  Montedison SpA di Risp.,                         7,722
         (Non-convertible).......................              
 84,200  Snia BPD SpA............................       105,502
    900  Snia BPD SpA di Risp.,                             706
         (Non-convertible).......................              
                                                   ------------
                                                        383,338
                                                   ------------
         COMPUTER SOFTWARE (0.1%):                             
124,327  Tecnost SpA*............................       317,972
                                                   ------------
         ENGINEERING (0.0%):                                   
  7,900  Impregilo SpA*..........................         6,672
                                                   ------------
         FINANCE (0.3%):                                       
 82,312  Banc San Paolo Torino...................     1,120,497
 36,470  Mediobanca SpA*.........................       381,747
                                                   ------------
                                                      1,502,244
                                                   ------------
         GAS & ELECTRIC UTILITY (0.1%):                        
 40,500  Edison SpA..............................       350,839
                                                   ------------
         GAS UTILITY (0.0%):                                   
 44,500  Italgas SpA.............................       186,779
                                                   ------------
         INSURANCE (0.6%):                                     
 57,663  Assicurazioni Generali (c)..............     1,998,068
240,200  Istituto Nazionale delle Assicurazioni         557,352
         (c).....................................              
 27,062  Riuniune Adriatici de Sicurta SpA.......       262,896
 10,900  Societa Assicuratrice Industriale (SAI)        112,409
         SpA.....................................              
298,200  Unione Immobiliare (c)..................       132,236
                                                   ------------
                                                      3,062,961
                                                   ------------
         JEWELRY (0.0%):                                       
 21,300  Bulgari SpA.............................       143,219
                                                   ------------
         OFFICE EQUIPMENT & SERVICES (0.1%):                   
179,696  Olivetti SpA* (c).......................       431,786
                                                   ------------
         OIL & GAS (0.7%):                                     
542,500  ENI SpA (c).............................     3,239,307
                                                   ------------
         PAPER PRODUCTS (0.0%):                                
 15,200  Burgo (Cartiere) SpA....................        97,501
                                                   ------------
         PRINTING & PUBLISHING (0.0%):                         
 11,400  Mondadori (Arnoldo) Editore SpA.........       197,509
                                                   ------------
         RETAIL STORES (0.0%):                                 
 14,200  La Rinascente SpA.......................       107,488
                                                   ------------

CONTINUED 
47

N-30D 49th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 49th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

ITALY (CONTINUED)                                                               

                                                                [Download Table]
                                                                 
           TELECOMMUNICATIONS (0.6%):                            
   19,400  Sirti SpA...............................  $     93,631
   99,760  Telecom Italia Mobile SpA...............       367,281
  379,660  Telecom Italia Mobile SpA di Risp, (Non-     2,266,978
           convertible)............................              
   57,260  Telecom Italia SpA-RNC..................       310,607
                                                     ------------
                                                        3,038,497
                                                     ------------
           TEXTILE PRODUCTS (0.0%):                              
  115,720  Benetton Group SpA (c)..................       227,938
    4,200  Marzotto (Gaetano) & Figli SpA..........        32,658
                                                     ------------
                                                          260,596
                                                     ------------
           TIRE & RUBBER (0.1%):                                 
  120,700  Pirelli SpA.............................       328,614
   10,600  Pirelli SpA di Risp,                            20,988
           (Non-convertible).......................              
                                                     ------------
                                                          349,602
                                                     ------------
                                                       18,622,673
                                                     ------------
JAPAN (25.8%):                                                   
           APPLIANCES & HOUSEHOLD PRODUCTS (1.5%):               
  148,000  Matsushita Electric Industrial Co., Ltd.     2,873,521
           (c).....................................              
   13,000  Pioneer Electronic Corp.................       252,941
  137,000  Sanyo Electric Co.......................       556,891
   81,000  Sharp Corp..............................       956,987
   29,700  Sony Corp...............................     3,202,225
                                                     ------------
                                                        7,842,565
                                                     ------------
           AUTOMOTIVE (2.4%):                                    
    3,000  Autobacs Seven Co., Ltd.................       145,742
   72,000  Honda Motor Co., Ltd....................     3,051,650
  183,000  Nissan Motor Co., Ltd.*.................       873,904
  275,000  Toyota Motor Corp. (c)..................     8,701,945
                                                     ------------
                                                       12,773,241
                                                     ------------
           BANKING (3.4%):                                       
   32,000  77 Bank.................................       280,247
  180,000  Asahi Bank Ltd..........................       862,552
   44,000  Ashikaga Bank Ltd.*.....................        85,793
  340,000  Bank of Tokyo -- Mitsubishi Ltd. (c)....     4,840,041
   94,000  Bank of Yokohama Ltd....................       241,531
   65,000  Chiba Bank Ltd. (c).....................       240,052
  250,000  Fuji Bank Ltd. (c)......................     1,743,281
   43,000  Gunma Bank Ltd..........................       270,002
   23,000  Higo Bank...............................        94,063
   57,000  Hokuriku Bank*..........................       113,024
  192,000  Industrial Bank of Japan (c)............     1,522,851
   73,000  Joyo Bank...............................       284,072
   95,000  Mitsubishi Trust & Banking Corp.........       923,030
   99,000  Mitsui Trust & Banking Co., Ltd.........       157,862
  283,000  Sakura Bank Ltd.........................     1,073,208
   59,000  Shizuoka Bank...........................       587,874
  228,000  Sumitomo Bank Ltd. (c)..................     2,827,486

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               
BANKING (CONTINUED)                                       

                                                                [Download Table]
                                                               
152,000  Tokai Bank (c)..........................  $    866,518
 17,000  Yamaguchi Bank..........................       153,797
                                                   ------------
                                                     17,167,284
                                                   ------------
         BREWERY (0.3%):                                       
 37,000  Asahi Breweries Ltd.....................       460,375
 76,000  Kirin Brewery Co., Ltd..................       910,472
 25,000  Sapporo Breweries Ltd...................       110,917
                                                   ------------
                                                      1,481,764
                                                   ------------
         BROADCASTING & PUBLISHING (0.0%):                     
 13,000  Tokyo Broadcasting System...............       187,960
                                                   ------------
         BUILDING PRODUCTS (0.1%):                             
 17,000  Sanwa Shutter Corp......................        92,138
 23,000  Sumitomo Osaka Cement Co., Ltd..........        44,656
 72,400  Taiheiyo Cement Corp....................       207,564
 19,000  Tostem Corp.............................       364,974
                                                   ------------
                                                        709,332
                                                   ------------
         CHEMICALS (1.3%):                                     
105,000  Asahi Chemical Industry Co., Ltd........       582,099
 19,000  Daicel Chemical Industries Ltd..........        69,855
 59,000  Dainippon Ink & Chemicals Inc...........       200,833
 26,000  Kaneka Corp. (c)........................       244,886
152,000  Mitsubishi Chemical Corp................       526,190
 42,000  Mitsubishi Gas Chemical Co..............       132,555
 10,000  Nippon Shokubai Kabushiki Kaisha Co.....        59,486
 46,000  Sekisui Chemical Co., Ltd...............       266,796
 30,000  Shin-Etsu Chemical Co., Ltd.............     1,003,832
118,000  Sumitomo Chemical Co....................       541,078
 65,000  Takeda Chemical Industries..............     3,012,736
 45,000  Tosoh Corp..............................       125,665
 63,000  Ube Industries Ltd......................       135,852
                                                   ------------
                                                      6,901,863
                                                   ------------
         CONSTRUCTION (0.3%):                                  
 39,000  Daiwa House Industry Co., Ltd...........       410,183
 13,000  Okumura Corp............................        48,333
 53,000  Sekisui House Ltd.......................       571,878
 59,000  Shimizu Corp. (c).......................       230,080
 72,000  Taisei Corp.............................       158,234
                                                   ------------
                                                      1,418,708
                                                   ------------
         CONSUMER GOODS & SERVICES (0.1%):                     
 22,000  Nippon Sheet Glass Co., Ltd.............        78,340
 31,000  Toto Ltd................................       239,474
                                                   ------------
                                                        317,814
                                                   ------------
         COSMETICS/PERSONAL CARE (0.3%):                       
 46,000  Kao Corp................................     1,292,176
 15,000  Lion Corp...............................        61,965
 31,000  Shiseido Co., Ltd.......................       464,605
                                                   ------------
                                                      1,818,746
                                                   ------------

CONTINUED 
48

N-30D 50th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 50th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               

                                                                [Download Table]
                                                                 
           DATA PROCESSING & REPRODUCTION (0.5%):                
  137,000  Fujitsu Ltd. (c)........................  $  2,756,160
                                                     ------------
           DISTRIBUTION (0.1%):                                  
  106,000  Itochu Corp.*...........................       263,607
                                                     ------------
           DIVERSIFIED (0.0%):                                   
   18,000  Yamaha Corp.............................       216,382
                                                     ------------
           ELECTRIC UTILITY (0.8%):                              
   71,800  Kansai Electric Power Co., Inc..........     1,364,386
   37,500  Tohoku Electric Power...................       567,599
   98,900  Tokyo Electric Power Co.................     2,087,719
                                                     ------------
                                                        4,019,704
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.6%):                       
   23,000  Casio Computer Co., Ltd.................       174,824
   14,000  Kyocera Corp............................       821,242
  156,000  Mitsubishi Electric Corp................       599,325
   22,000  Omron Corp..............................       381,704
    8,000  Rohm Co., Ltd...........................     1,252,518
                                                     ------------
                                                        3,229,613
                                                     ------------
           ELECTRICAL EQUIPMENT (0.2%):                          
   16,000  Alps Electric Co., Ltd. (c).............       374,764
    6,000  SMC Corp. (c)...........................       671,700
   10,000  Taiyo Yuden Co., Ltd....................       164,083
                                                     ------------
                                                        1,210,547
                                                     ------------
           ELECTRONIC COMPONENTS/INSTRUMENTS (1.2%):             
    7,600  Advantest Corp..........................       835,122
   17,100  Fanuc Ltd...............................       918,321
    3,000  Hirose Electric Co., Ltd................       311,312
  239,000  Hitachi Ltd.............................     2,241,190
  115,000  NEC Corp................................     1,429,945
   13,000  Nitto Denko Corp. (c)...................       272,811
   23,000  Yokogawa Electric Corp..................       135,868
                                                     ------------
                                                        6,144,569
                                                     ------------
           ENERGY (0.0%):                                        
   90,000  Japan Energy Corp.......................       105,588
                                                     ------------
           ENGINEERING (0.3%):                                   
    7,000  Daito Trust Construction Co., Ltd.......        78,076
   72,000  Kajima Corp. (c)........................       261,740
   18,000  Kandenko Co., Ltd.......................       110,347
  115,000  Kawasaki Heavy Industries Ltd...........       311,642
   23,000  Kinden Corp.............................       247,984
   25,000  Nishimatsu Construction (c).............       143,346
   56,000  Obayashi Corp...........................       281,767
                                                     ------------
                                                        1,434,902
                                                     ------------
           ENTERTAINMENT (0.1%):                                 
    4,000  NAMCO...................................       107,406

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               
ENTERTAINMENT (CONTINUED)                                 

                                                                [Download Table]
                                                               
  1,700  Toho Co.................................  $    248,603
 14,000  Tokyo Dome Corp.*.......................        81,199
                                                   ------------
                                                        437,208
                                                   ------------
         FINANCE (0.7%):                                       
 11,000  Acom Co., Ltd...........................       949,716
 97,000  Daiwa Securities Co., Ltd. (c)..........       641,131
143,000  Nomura Securities Co., Ltd..............     1,674,136
 24,000  Orient Corp.............................        69,797
  5,000  Orix Corp...............................       446,148
                                                   ------------
                                                      3,780,928
                                                   ------------
         FOOD & HOUSEHOLD PRODUCTS (0.2%):                     
 48,000  Ajinomoto Co., Inc......................       547,274
 20,000  Nippon Meat Packers Inc.................       261,079
 12,000  Nissin Food Products Co., Ltd...........       292,475
                                                   ------------
                                                      1,100,828
                                                   ------------
         FOOD PRODUCTS (0.2%):                                 
 51,000  Daiei Inc.* (c).........................       174,444
 10,000  House Foods Industry....................       147,394
 12,000  Itoham Foods............................        48,779
 15,000  Kikkoman Corp. (c)......................       127,028
 15,000  Meiji Milk Products Co., Ltd............        53,662
  8,000  QP Corp.................................        57,503
 23,000  Snow Brand Milk Products Co., Ltd.......       112,305
 19,000  Yamazaki Baking Co., Ltd................       235,781
                                                   ------------
                                                        956,896
                                                   ------------
         FOREST PRODUCTS (0.2%):                               
 70,000  Nippon Paper Industries Co..............       364,932
 76,000  Oji Paper Co., Ltd......................       439,538
 12,000  Sumitomo Forestry Co., Ltd..............        93,394
  6,000  Uni-Charm...............................       260,253
                                                   ------------
                                                      1,158,117
                                                   ------------
         GAS UTILITY (0.2%):                                   
184,000  Osaka Gas Co., Ltd......................       624,805
204,000  Tokyo Gas Co., Ltd......................       502,263
                                                   ------------
                                                      1,127,068
                                                   ------------
         HEALTH & PERSONAL CARE (0.2%):                        
 33,000  Kyowa Hakko Kogyo Co....................       188,944
 34,000  Sankyo Co., Ltd.........................       856,768
                                                   ------------
                                                      1,045,712
                                                   ------------
         HEALTH CARE (0.1%):                                   
  8,000  Hoya Corp...............................       451,435
                                                   ------------
         HOTELS & LODGING (0.0%):                              
 11,000  Fujita Kanko Inc........................       104,514
                                                   ------------
         INDUSTRIAL GOODS & SERVICES (0.8%):                   
 60,000  Bridgestone Corp........................     1,814,335
 65,000  Denso Corp..............................     1,321,093

CONTINUED 
49

N-30D 51st “Page” of 126 TOC 1st Previous Next ↓Bottom Just 51st
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               
INDUSTRIAL GOODS & SERVICES (CONTINUED)                   

                                                                [Download Table]
                                                                 
   17,000  Inax Corp...............................  $    103,795
   30,000  NGK Insulators Ltd......................       313,295
   19,000  NGK Spark Plug Co., Ltd. (c)............       195,437
   54,000  Sumitomo Electric Industries Ltd........       613,899
                                                     ------------
                                                        4,361,854
                                                     ------------
           INSURANCE (0.4%):                                     
   65,000  Mitsui Marine & Fire Insurance Co.,            319,533
           Ltd.....................................              
   34,000  Nichido Fire & Marine Insurance Co.,           175,006
           Ltd.....................................              
   48,000  Nippon Fire & Marine Insurance Co.......       162,596
   55,000  Sumitomo Marine & Fire Insurance Co.....       331,719
  113,000  Tokio Marine & Fire Insurance Co........     1,227,690
                                                     ------------
                                                        2,216,544
                                                     ------------
           JEWELRY (0.0%):                                       
   23,000  Citizen Watch Co., Ltd..................       199,527
                                                     ------------
           LEASING (0.1%):                                       
   32,000  Yamato Transport Co., Ltd...............       557,850
                                                     ------------
           MACHINE-DIVERSIFIED (0.1%):                           
    7,000  Komori Corp.............................       126,078
   10,000  Kurita Water Industries Ltd.............       179,285
   22,000  Toyoda Automatic Loom Works (c).........       373,525
                                                     ------------
                                                          678,888
                                                     ------------
           MACHINERY & EQUIPMENT (0.8%):                         
   22,000  Amada Co., Ltd..........................       155,408
   14,000  Brother Industries Ltd..................        48,234
   23,000  Daikin Industries Ltd...................       266,986
   21,000  Ebara Corp..............................       249,669
   71,000  Komatsu Ltd.............................       453,443
   10,000  Koyo Seiko Co., Ltd.....................        87,164
  116,000  Kubota Corp.............................       346,938
   34,000  Minebea Co., Ltd........................       379,226
  245,000  Mitsubishi Heavy Industries Ltd.........       993,876
    5,000  Mori Seiki Co...........................        68,161
   40,000  NSK Ltd.................................       219,439
   33,000  NTN Corp................................       112,603
   13,000  Tokyo Electron Ltd......................       881,802
                                                     ------------
                                                        4,262,949
                                                     ------------
           MANUFACTURING -- CAPITAL GOODS (0.3%):                
   31,000  Fujikura Ltd............................       148,038
   10,000  Kokuyo Co...............................       161,109
   14,000  Makita Corp.............................       158,349
   17,000  Murata Manufacturing Co., Ltd...........     1,118,014
    8,000  Noritake Co., Ltd.......................        41,640
    7,000  Takara Standard Co......................        43,954
                                                     ------------
                                                        1,671,104
                                                     ------------
           MANUFACTURING -- CONSUMER GOODS (0.8%):               
   64,000  Canon Inc...............................     1,840,112
   38,000  Fuji Photo Film Co., Ltd................     1,437,917
   30,000  Konica Corp.............................       123,682

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               
MANUFACTURING -- CONSUMER GOODS (CONTINUED)               

                                                                [Download Table]
                                                               
 27,000  Nikon Corp..............................  $    441,686
  8,700  Sega Enterprises Ltd. (c)...............       115,079
 12,000  Shimano Inc.............................       284,047
                                                   ------------
                                                      4,242,523
                                                   ------------
         MEDICAL SUPPLIES (0.1%):                              
 23,000  Olympus Optical Co., Ltd................       339,956
                                                   ------------
         MERCHANDISING (0.6%):                                 
 30,000  Ito-Yokado Co., Ltd.....................     2,007,664
 24,000  JUSCO Co., Ltd..........................       436,233
 28,000  Marui Co., Ltd..........................       462,672
                                                   ------------
                                                      2,906,569
                                                   ------------
         METALS (0.4%):                                        
236,000  Kawasaki Steel Corp.....................       440,662
 80,000  Mitsubishi Materials Corp.*.............       179,120
494,000  Nippon Steel Corp.......................     1,146,881
280,000  NKK Corp.*..............................       229,022
264,000  Sumitomo Metal Industries Ltd.*.........       329,356
                                                   ------------
                                                      2,325,041
                                                   ------------
         METALS & MINING (0.1%):                               
 83,000  Hitachi Zosen Corp.*....................       100,119
 43,000  Mitsui Mining & Smelting Co. (c)........       222,041
 41,000  Sumitomo Metal Mining Co................       169,371
                                                   ------------
                                                        491,531
                                                   ------------
         MISCELLANEOUS MATERIALS & COMMODITIES (0.1%):         
 86,000  Asahi Glass Co., Ltd....................       557,767
                                                   ------------
         OIL & GAS (0.1%):                                     
 53,000  Cosmo Oil Co., Ltd......................        97,211
107,800  Nippon Oil Co., Ltd.....................       454,228
                                                   ------------
                                                        551,439
                                                   ------------
         PACKAGING (0.1%):                                     
 17,000  Toyo Seikan Kaisha Ltd..................       382,035
                                                   ------------
         PHARMACEUTICALS (0.6%):                               
 18,000  Chugai Pharmaceutical Co., Ltd..........       193,926
 20,000  Dai-Ichi Pharmaceuticals................       310,320
 22,000  Eisai Co., Ltd..........................       433,507
  3,000  Kissei Pharmaceutical Co., Ltd..........        59,610
 29,000  Meiji Seika Co..........................       162,208
 26,000  Shionogi & Co., Ltd.....................       205,575
 26,000  Taisho Pharmacuetical Co................       859,247
 25,000  Yamanouchi Pharmaceutical Co., Ltd......       956,326
                                                   ------------
                                                      3,180,719
                                                   ------------
         PRINTING & PUBLISHING (0.3%):                         
 56,000  Dai Nippon Printing Co., Ltd............       895,269
 52,000  Toppan Printing Co., Ltd................       580,422
                                                   ------------
                                                      1,475,691
                                                   ------------

CONTINUED 
50

N-30D 52nd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 52nd
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               

                                                                [Download Table]
                                                                 
           REAL ESTATE (0.3%):                                   
   95,000  Mitsubishi Estate Co., Ltd. (c).........  $    926,955
   60,000  Mitsui Fudosan Co., Ltd.................       485,805
                                                     ------------
                                                        1,412,760
                                                     ------------
           RETAIL STORES (0.2%):                                 
    5,000  Aoyama Trading Co., Ltd.................       157,804
   14,000  Daimuru Inc.............................        68,475
   16,000  Hankyu Department Stores Co.............       106,150
   19,000  Isetan Co...............................       163,728
   34,000  Mitsukoshi Ltd.* (c)....................       147,758
   23,000  Mycal Corp..............................       144,420
    5,000  Skylark Co., Ltd........................       107,406
   22,000  Takashimaya Co., Ltd....................       210,300
                                                     ------------
                                                        1,106,041
                                                     ------------
           RETAIL -- GENERAL MERCHANDISE (0.1%):                 
   14,300  Credit Saison Co., Ltd..................       298,911
                                                     ------------
           RETAIL-SPECIAL LINE (0.0%):                           
    2,000  Shimachu Co.............................        44,284
   14,000  Uny Co., Ltd............................       210,516
                                                     ------------
                                                          254,800
                                                     ------------
           SERVICES (0.2%):                                      
    9,000  Secom Co., Ltd..........................       936,910
                                                     ------------
           STORAGE (0.0%):                                       
   15,000  Mitsubishi Logistics Corp...............       168,669
                                                     ------------
           TELECOMMUNICATIONS (2.1%):                            
   11,000  Nippon Comsys Corp. (c).................       178,583
      951  Nippon Telegraph & Telephone Corp.......    11,078,590
                                                     ------------
                                                       11,257,173
                                                     ------------
           TEXTILE PRODUCTS (0.4%):                              
   30,000  Kuraray Co., Ltd........................       360,884
   54,000  Mitsubishi Rayon Co., Ltd...............       153,921
   21,000  Nisshinbo Industries Inc................        95,600
   15,000  Onward Kashiyama Co., Ltd...............       164,827
   76,000  Teijin Ltd..............................       307,677
    5,000  Tokyo Style.............................        53,703
  102,000  Toray Industries Inc....................       510,689
   49,000  Toyobo Ltd..............................        74,085
   14,000  Wacoal Corp.............................       142,503
                                                     ------------
                                                        1,863,889
                                                     ------------
           TOBACCO (0.0%):                                       
   11,000  Takara Shuzo............................        89,700
                                                     ------------
           TRANSPORTATION (0.8%):                                
      296  East Japan Railway Co...................     1,589,607
   72,000  Hankyu Corp.............................       285,535
  130,000  Japan Airlines Co. (c)..................       429,624
  118,000  Kinki Nippon Railway Co.................       580,074
   68,000  Nagoya Railroad Co., Ltd................       223,603

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

JAPAN (CONTINUED)                                                               
TRANSPORTATION (CONTINUED)                                

                                                                [Download Table]
                                                                 
   44,000  Nankai Electric Railway Co..............  $    203,939
   79,000  Nippon Express Co., Ltd.................       473,206
   55,000  Odakyu Electric Railway Co..............       184,036
   64,000  Tobu Railway Co., Ltd...................       181,367
   82,000  Tokyu Corp..............................       206,632
                                                     ------------
                                                        4,357,623
                                                     ------------
           TRANSPORTATION & SHIPPING (0.2%):                     
   23,000  Kamigumi Co., Ltd.......................       118,006
   30,000  Kawasaki Kisen Kaisha Ltd...............        64,691
   38,000  Keihin Electric Express Railway Co.,           125,582
           Ltd.....................................              
   83,000  Mitsui OSK Lines Ltd....................       178,294
   89,000  Nippon Yusen Kabushiki Kaisha...........       342,659
    8,000  Seino Transportation (c)................        47,589
                                                     ------------
                                                          876,821
                                                     ------------
           WHOLESALE & INTERNATIONAL TRADE (0.5%):               
  112,000  Marubeni Corp...........................       234,112
  114,000  Mitsubishi Corp.........................       772,331
  116,000  Mitsui & Co., Ltd.......................       808,883
   78,000  Sumitomo Corp...........................       570,325
                                                     ------------
                                                        2,385,651
                                                     ------------
           WIRE & CABLE PRODUCTS (0.0%):                         
   47,000  Furukawa Electric Co., Ltd..............       215,514
                                                     ------------
                                                      135,789,504
                                                     ------------
MALAYSIA (1.1%):                                                 
           AGRICULTURE (0.0%):                                   
  130,000  Golden Hope Plantations Berhad..........       100,429
   37,500  Highlands & Lowlands Berhad.............        23,638
   52,000  IOI Corp. Berhad*.......................        29,698
   79,000  Kuala Lumpur Kepong Berhad..............        97,349
                                                     ------------
                                                          251,114
                                                     ------------
           AUTOMOTIVE (0.0%):                                    
   13,000  Ederan Otomobil.........................        43,745
   19,200  Oriental Holdings.......................        47,319
   33,000  Perusahaan Otomobil Nasional Berhad.....        68,818
   41,000  Tan Chong Motors*.......................        21,569
                                                     ------------
                                                          181,451
                                                     ------------
           BANKING (0.4%):                                       
   24,000  AMMB Holdings Berhad*...................        55,167
   48,000  Commerce Asset Holdings Berhad..........       106,922
  343,000  Malayan Banking Berhad..................       926,613
  213,600  Public Bank Berhad......................       201,458
  187,000  RHB Capital Berhad*.....................       217,139
                                                     ------------
                                                        1,507,299
                                                     ------------
           BEVERAGES & TOBACCO (0.0%):                           
   18,000  Guinness Anchor.........................        17,830
                                                     ------------

CONTINUED 
51

N-30D 53rd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 53rd
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

MALAYSIA (CONTINUED)                                                            

                                                                [Download Table]
                                                                 
           BUILDING PRODUCTS (0.0%):                             
   15,000  Jaya Tiasa Holdings Berhad*.............  $     27,549
  113,000  Malayan United Industries*..............        26,242
                                                     ------------
                                                           53,791
                                                     ------------
           CHEMICALS (0.0%):                                     
    8,000  Malaysian Oxygen Berhad.................        17,062
                                                     ------------
           DIVERSIFIED (0.1%):                                   
   60,000  Malaysian Resources*....................        36,257
   58,000  Multi-Purpose Holdings Berhad*..........        30,925
   22,500  Perlis Plantations Berhad...............        23,674
  247,040  Sime Darby Berhad.......................       291,538
  132,500  YTL Corp. Berhad*.......................       251,192
                                                     ------------
                                                          633,586
                                                     ------------
           ELECTRIC UTILITY (0.2%):                              
  327,000  Tenaga Nasional Berhad*.................       678,040
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.0%):                       
   12,000  Malaysian Pacific.......................        30,143
                                                     ------------
           ENERGY (0.0%):                                        
   16,000  UMW Holdings Berhad.....................        32,418
                                                     ------------
           ENGINEERING (0.0%):                                   
  180,000  Amsteel Corp. Berhad....................        39,669
    6,300  Silverstone Berhad*.....................             0
   46,000  Time Engineering Berhard*...............        15,370
   49,326  United Engineers (Malaysia) Ltd.*.......        76,563
                                                     ------------
                                                          131,602
                                                     ------------
           ENTERTAINMENT (0.1%):                                 
   38,000  Berjaya Land Berhad*....................        21,972
  141,000  Magnum Corp. Berhad.....................        92,555
  118,000  Resorts World Berhad....................       250,268
                                                     ------------
                                                          364,795
                                                     ------------
           FINANCE (0.0%):                                       
   48,000  MBf Capital Berhad*.....................        11,716
   23,000  Rashid Hussain Berhad*..................        24,309
                                                     ------------
                                                           36,025
                                                     ------------
           FOOD PRODUCTS (0.0%):                                 
   26,000  Nestle (Malaysia) Berhad................        92,420
                                                     ------------
           METALS & MINING (0.0%):                               
   92,400  Malaysia Mining Corp. Berhad............        45,982
                                                     ------------
           OIL & GAS (0.0%):                                     
   17,500  Shell Refining Co. (Malaysia) Berhad....        20,943
                                                     ------------
           PRINTING & PUBLISHING (0.0%):                         
   11,000  New Straits Time Press*.................        22,548
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

MALAYSIA (CONTINUED)                                                            

                                                                [Download Table]
                                                                 
           TELECOMMUNICATIONS (0.3%):                            
   47,000  Technology Resources Industries           $     34,527
           Berhad..................................              
  351,000  Telekom Malaysia Berhad.................     1,181,122
                                                     ------------
                                                        1,215,649
                                                     ------------
           TOBACCO (0.0%):                                       
   15,000  RJ Reynolds.............................        15,782
   29,300  Rothmans of Pall Mall (Malaysia)               199,621
           Berhad..................................              
                                                     ------------
                                                          215,403
                                                     ------------
           TRANSPORTATION (0.0%):                                
   47,000  Malaysian Airlines......................        57,916
   91,000  Malaysian International Shipping........       149,874
                                                     ------------
                                                          207,790
                                                     ------------
                                                        5,755,891
                                                     ------------
NETHERLANDS (5.2%):                                              
           BANKING (0.4%):                                       
   91,835  ABN Amro Holding NV.....................     1,988,847
                                                     ------------
           BEVERAGES & TOBACCO (0.2%):                           
   19,937  Heineken NV.............................     1,020,829
                                                     ------------
           BROADCASTING & PUBLISHING (0.1%):                     
   48,430  Elsevier NV.............................       561,876
                                                     ------------
           CHEMICALS (0.1%):                                     
   18,132  Akzo Nobel NV...........................       762,921
                                                     ------------
           COMPUTER SOFTWARE (0.0%):                             
    6,708  Getronics NV............................       258,033
                                                     ------------
           ELECTRONICS (0.4%):                                   
   21,381  Philips Electronics NV..................     2,109,030
                                                     ------------
           FINANCE (0.6%):                                       
   58,883  ING Groep NV............................     3,188,035
                                                     ------------
           FOOD PRODUCTS (0.5%):                                 
   36,270  Unilever NV - CVA.......................     2,444,370
                                                     ------------
           INSURANCE (0.4%):                                     
   27,594  Aegon NV................................     2,001,947
                                                     ------------
           OIL & GAS (1.5%):                                     
  145,400  Royal Dutch Petroleum Co................     8,516,998
                                                     ------------
           PRINTING & PUBLISHING (0.2%):                         
    6,216  Oce NV..................................       158,337
   18,000  Wolters Kluwer CVA......................       716,528
                                                     ------------
                                                          874,865
                                                     ------------
           RETAIL-SPECIAL LINE (0.3%):                           
   38,917  Ahold...................................     1,340,478
                                                     ------------
           TELECOMMUNICATIONS (0.3%):                            
   30,605  KPN NV..................................     1,436,077
                                                     ------------

CONTINUED 
52

N-30D 54th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 54th
Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

NETHERLANDS (CONTINUED)                                                         

                                                                [Download Table]
                                                                 
           TRANSPORTATION (0.2%):                                
   10,159  KLM Royal Dutch Air Lines NV............  $    287,586
   30,417  TNT Post Group NV.......................       726,174
                                                     ------------
                                                        1,013,760
                                                     ------------
                                                       27,518,066
                                                     ------------
NEW ZEALAND (0.2%):                                              
           APPLIANCES & HOUSEHOLD PRODUCTS (0.0%):               
    8,949  Fisher & Paykel Industries Ltd..........        28,454
                                                     ------------
           BEVERAGES & TOBACCO (0.0%):                           
   41,300  Lion Nathan Ltd.........................        98,923
                                                     ------------
           FOREST PRODUCTS (0.0%):                               
  130,281  Carter Holt Harvey Ltd..................       156,027
                                                     ------------
           TELECOMMUNICATIONS (0.2%):                            
  131,965  Telecom Corp. of New Zealand Ltd. (c)...       566,440
                                                     ------------
                                                          849,844
                                                     ------------
NORWAY (0.4%):                                                   
           BANKING (0.1%):                                       
   48,900  Christiania Bank Og Kreditkasse.........       175,791
   37,000  Den Norske Bank ASA.....................       122,202
                                                     ------------
                                                          297,993
                                                     ------------
           CHEMICALS (0.0%):                                     
    1,000  Dyno Industrier ASA.....................        18,038
                                                     ------------
           DIVERSIFIED (0.2%):                                   
   18,650  Norsk Hydro ASA (c).....................       703,618
                                                     ------------
           ELECTRIC UTILITY (0.0%):                              
   15,650  Hafslund ASA, Series A..................       104,370
   10,326  Hafslund ASA, Series B..................        42,761
                                                     ------------
                                                          147,131
                                                     ------------
           FOREST PRODUCTS (0.0%):                               
    3,200  Norske Skogindustrier ASA -- Class A....       117,883
                                                     ------------
           INDUSTRIAL GOODS & SERVICES (0.0%):                   
    1,200  Unitor ASA..............................        10,366
                                                     ------------
           INSURANCE (0.0%):                                     
   24,100  Storebrand ASA*.........................       162,254
                                                     ------------
           MANUFACTURING -- CONSUMER GOODS (0.0%):               
   14,800  Orkla ASA -- Class A....................       230,303
                                                     ------------
           OIL & GAS (0.1%):                                     
   10,500  Aker RGI ASA, Series A..................       142,717
    2,100  Aker RGI ASA, Series B..................        26,143
    9,700  Petroleum Geo-Services ASA*.............       146,013
                                                     ------------
                                                          314,873
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

NORWAY (CONTINUED)                                                              

                                                                [Download Table]
                                                                 
           TRANSPORTATION (0.0%):                                
    2,200  Leif Hoegh & Co. ASA....................  $     27,946
                                                     ------------
                                                        2,030,405
                                                     ------------
PORTUGAL (0.4%):                                                 
           BANKING (0.1%):                                       
   13,300  Banco Commercial Portuguese.............       344,681
    7,900  Banco Espirito Santo....................       183,798
                                                     ------------
                                                          528,479
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.2%):                       
   41,000  Electricidade De Portugal...............       738,246
                                                     ------------
           FOOD PRODUCTS (0.0%):                                 
    6,300  Jeronimo Martins, SGPS, SA..............       208,100
                                                     ------------
           TELECOMMUNICATIONS (0.1%):                            
   13,000  Portugal Telecom SA.....................       528,889
                                                     ------------
           TRANSPORTATION (0.0%):                                
    4,000  Brisa Auto-Estradas.....................       165,004
                                                     ------------
                                                        2,168,718
                                                     ------------
SINGAPORE (1.1%):                                                
           BANKING (0.5%):                                       
   77,375  Development Bank Of Singapore Ltd.             945,334
           (c).....................................              
   65,676  Oversea-Chinese Banking Corp., Ltd......       547,793
  117,350  United Overseas Bank Ltd................       820,260
                                                     ------------
                                                        2,313,387
                                                     ------------
           FINANCE (0.0%):                                       
   29,600  Haw Par Brothers International Ltd......        50,421
                                                     ------------
           HOTELS & LODGING (0.0%):                              
    1,400  Overseas Union Enterprise Ltd...........         4,441
    1,100  Shangri-La Hotel Ltd....................         2,649
                                                     ------------
                                                            7,090
                                                     ------------
           PRINTING & PUBLISHING (0.1%):                         
   31,472  Singapore Press Holdings Ltd.*..........       541,643
                                                     ------------
           REAL ESTATE (0.1%):                                   
   67,600  City Developments Ltd...................       432,807
  115,000  DBS Land Ltd............................       229,667
   52,000  United Overseas Land Ltd................        58,644
                                                     ------------
                                                          721,118
                                                     ------------
           STEEL (0.0%):                                         
   60,750  NatSteel Ltd............................       106,337
                                                     ------------
           TELECOMMUNICATIONS (0.2%):                            
  519,000  Singapore Telecommunications Ltd.*             890,167
           (c).....................................              
                                                     ------------
           TRANSPORTATION (0.1%):                                
   80,000  Singapore Airlines Ltd.*................       761,248
                                                     ------------

CONTINUED 
53

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Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

SINGAPORE (CONTINUED)                                                           

                                                                [Download Table]
                                                                 
           TRANSPORTATION & SHIPPING (0.1%):                     
   79,000  Keppel Corp.............................  $    269,139
                                                     ------------
                                                        5,660,550
                                                     ------------
SPAIN (2.9%):                                                    
           AGRICULTURE (0.0%):                                   
    4,500  Azucarera Ebro Agricolas SA.............        68,868
                                                     ------------
           BANKING (0.7%):                                       
  246,320  Banco Santander Central Hispanoamericano     2,565,635
           SA......................................              
   32,700  Corporation Bancaria De Espana SA.......       744,933
                                                     ------------
                                                        3,310,568
                                                     ------------
           BANKING & FINANCE (0.4%):                             
  133,923  Banco Bilbao Vizcaya....................     1,934,939
    2,460  Portland Valoerrivass...................        77,376
                                                     ------------
                                                        2,012,315
                                                     ------------
           BEVERAGES & TOBACCO (0.1%):                           
    1,650  El Aguila SA*...........................        15,791
   12,330  Tabacalera SA -- Class A (c)............       249,226
                                                     ------------
                                                          265,017
                                                     ------------
           BUILDING PRODUCTS (0.0%):                             
    5,400  Uralita SA..............................        45,386
                                                     ------------
           CHEMICALS (0.0%):                                     
      700  Ercros SA*..............................           570
                                                     ------------
           COMMERCIAL SERVICES (0.0%):                           
      500  Prosegur, CIA de Seguridad SA...........         5,579
                                                     ------------
           CONSTRUCTION (0.1%):                                  
    3,300  ACS, Actividades de Construccion y              94,473
           Servicios SA............................              
    4,108  Fomento de Construcciones y Contratas          235,124
           SA......................................              
                                                     ------------
                                                          329,597
                                                     ------------
           ENGINEERING (0.1%):                                   
   16,863  Autopistas Concesionaria Espanola SA....       197,381
   11,700  Grupo Dragados SA.......................       137,189
                                                     ------------
                                                          334,570
                                                     ------------
           FOOD PRODUCTS (0.0%):                                 
   14,400  Telepizza SA*...........................        74,549
    2,564  Viscofan Industria Navarra de Envolturas        29,086
           Celulosicassa SA........................              
                                                     ------------
                                                          103,635
                                                     ------------
           GAS & ELECTRIC UTILITY (0.6%):                        
   63,480  Endesa SA (c)...........................     1,353,820
   10,024  Gas Natural SDG SA*.....................       728,793
   59,924  Iberdrola SA (c)........................       912,757
   20,366  Union Electrica Fenosa SA (c)...........       266,317
                                                     ------------
                                                        3,261,687
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

SPAIN (CONTINUED)                                                               

                                                                [Download Table]
                                                                 
           HOTELS & LODGING (0.0%):                              
    2,700  Sol Melia SA*...........................  $    114,023
                                                     ------------
           INDUSTRIAL HOLDING COMPANY (0.0%):                    
      975  Corporacion Financiara Alba SA..........       157,862
                                                     ------------
           INSURANCE (0.0%):                                     
    4,700  Corporacion Mapfre......................        95,728
                                                     ------------
           MACHINERY & EQUIPMENT (0.0%):                         
    4,216  Zardoya Otis SA.........................       105,870
                                                     ------------
           METALS (0.0%):                                        
    3,900  Acerinox SA (c).........................       114,023
                                                     ------------
           OIL & GAS (0.2%):                                     
   59,994  Repsol SA (c)...........................     1,225,030
                                                     ------------
           PAPER PRODUCTS (0.0%):                                
    3,493  Reno de Medici SpA*.....................         8,213
                                                     ------------
           REAL ESTATE (0.0%):                                   
    4,268  Metrovacesa SA*.........................        83,584
    8,683  Vallehermoso SA.........................        84,083
                                                     ------------
                                                          167,667
                                                     ------------
           TELECOMMUNICATIONS (0.7%):                            
   69,487  Telefonica de Espana*...................     3,347,244
                                                     ------------
           WATER UTILITY (0.0%):                                 
    3,100  Aquas De Barcelona*.....................       161,446
       47  Sociedad General de Aguas de Barcelona           2,423
           SA......................................              
                                                     ------------
                                                          163,869
                                                     ------------
                                                       15,237,321
                                                     ------------
SWEDEN (2.2%):                                                   
           AUTOMOTIVE (0.2%):                                    
   11,300  Volvo AB, Series A......................       325,639
   18,300  Volvo AB, Series B......................       530,591
                                                     ------------
                                                          856,230
                                                     ------------
           BANKING & FINANCE (0.3%):                             
   31,500  ForeningsSparbanken AB..................       444,615
   35,400  Skandiaviska Enskilda Banken, Series           412,221
           A.......................................              
   39,000  Svenska Handelsbanken, Series A.........       467,904
    3,600  Svenska Handlesbanken, Series B.........        39,804
                                                     ------------
                                                        1,364,544
                                                     ------------
           CHEMICALS (0.0%):                                     
    7,400  Aga AB, Series A........................        92,263
    8,900  Aga AB, Series B........................       109,919
                                                     ------------
                                                          202,182
                                                     ------------
           COMPUTER HARDWARE MANUFACTURING (0.0%):               
    5,800  WM-Data AB, Series B....................       221,037
                                                     ------------

CONTINUED 
54

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Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

SWEDEN (CONTINUED)                                                              

                                                                [Download Table]
                                                                 
           CONSUMER GOODS & SERVICES (0.1%):                     
   19,600  Securitas AB, Series B..................  $    292,787
                                                     ------------
           ENGINEERING (0.2%):                                   
   40,200  ABB AB, Series A........................       534,313
   28,500  ABB AB, Series B........................       377,129
    6,500  Skanska AB, Series B....................       245,038
                                                     ------------
                                                        1,156,480
                                                     ------------
           FINANCE (0.0%):                                       
    5,800  Om Gruppen AB...........................        65,492
                                                     ------------
           FOREST PRODUCTS (0.1%):                               
      700  Korsnas AB, Series B....................         9,757
   11,900  Svenska Cellusoa AB, Series B...........       307,937
                                                     ------------
                                                          317,694
                                                     ------------
           HEALTH & PERSONAL CARE (0.0%):                        
      196  TeleLarm Care AB*.......................         2,271
                                                     ------------
           INDUSTRIAL GOODS & SERVICES (0.1%):                   
   14,900  Sandvik AB, Series A....................       325,104
                                                     ------------
           INSURANCE (0.1%):                                     
   30,800  Skandia Forsakrings AB..................       576,023
                                                     ------------
           MACHINERY & EQUIPMENT (0.1%):                         
   10,050  Atlas Copco AB, Series A................       273,659
      500  Atlas Copco AB, Series B................        13,409
                                                     ------------
                                                          287,068
                                                     ------------
           MANUFACTURING -- CONSUMER GOODS (0.1%):               
   22,000  Electrolux AB, Series B.................       460,611
                                                     ------------
           METALS & MINING (0.0%):                               
    3,110  Boliden Ltd.*...........................         7,133
    7,960  Trelleborg AB, Series B.................        70,221
                                                     ------------
                                                           77,354
                                                     ------------
           OFFICE EQUIPMENT & SERVICES (0.0%):                   
      300  Esselte AB, Series B....................         3,105
      300  Meto AG*................................         1,486
                                                     ------------
                                                            4,591
                                                     ------------
           REAL ESTATE (0.0%):                                   
    6,500  Drott AB................................        52,754
                                                     ------------
           RETAIL -- SPECIAL LINE (0.2%):                        
   49,600  Hennes & Mauritz AB, Series B...........     1,225,160
                                                     ------------
           TELECOMMUNICATIONS (0.7%):                            
    7,300  Netcom AB, Series B*....................       245,573
  123,800  Telefonaktiebolaget LM Ericsson, Series      3,968,068
           B.......................................              
                                                     ------------
                                                        4,213,641
                                                     ------------
                                                       11,701,023
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
SWITZERLAND (6.0%):                                              
           AIRLINES (0.0%):                                      
    1,100  SAirGroup...............................  $    230,318
                                                     ------------
           BUILDING PRODUCTS (0.2%):                             
      700  Holderbank Financiere Glarus AG -- Class       222,888
           A.......................................              
      542  Holderbank Financiere Glarus AG -- Class       639,764
           B.......................................              
                                                     ------------
                                                          862,652
                                                     ------------
           COMMERCIAL SERVICES (0.1%):                           
    1,144  Adecco SA...............................       612,993
                                                     ------------
           DIVERSIFIED (0.3%):                                   
      704  ABB AG, Bearer Shares...................     1,041,561
      579  Alusuisse-Lonza Holding AG,                    674,872
           Registered*.............................              
                                                     ------------
                                                        1,716,433
                                                     ------------
           ELECTRONIC COMPONENTS/INSTRUMENTS (0.1%):             
      285  The Swatch Group AG, Bearer.............       191,762
    1,100  The Swatch Group AG, Registered.........       157,083
                                                     ------------
                                                          348,845
                                                     ------------
           FINANCE (1.2%):                                       
   14,820  Credit Suisse Group, Registered.........     2,564,395
   12,842  UBS AG, Registered......................     3,832,967
                                                     ------------
                                                        6,397,362
                                                     ------------
           FOOD PRODUCTS (0.8%):                                 
    2,465  Nestle SA, Registered (c)...............     4,441,344
                                                     ------------
           INSURANCE (0.7%):                                     
      927  Swiss Reinsurance Co., Registered.......     1,765,045
    2,940  Zurich Allied AG........................     1,671,799
                                                     ------------
                                                        3,436,844
                                                     ------------
           MANUFACTURING -- CONSUMER GOODS (0.0%):               
      281  Sulzer AG, Registered...................       170,814
                                                     ------------
           PHARMACEUTICALS (2.4%):                               
    3,990  Novartis AG, Registered.................     5,826,754
      436  Roche Holding AG........................     4,481,750
      133  Roche Holding AG, Bearer................     2,190,161
                                                     ------------
                                                       12,498,665
                                                     ------------
           TELECOMMUNICATIONS (0.2%):                            
    2,500  Swisscom AG, Registered.................       940,763
                                                     ------------
                                                       31,657,033
                                                     ------------
UNITED KINGDOM (19.3%):                                          
           AEROSPACE (0.1%):                                     
   25,464  Smiths Industries PLC...................       338,572
                                                     ------------
           AEROSPACE & MILITARY TECHNOLOGY (0.1%):               
  119,388  British Aerospace PLC...................       780,523
                                                     ------------

CONTINUED 
55

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Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

UNITED KINGDOM (CONTINUED)                                                      

                                                                [Download Table]
                                                                 
           AIRLINES (0.0%):                                      
   26,216  BAA PLC.................................  $    251,458
                                                     ------------
           AUTOMOTIVE (0.1%):                                    
  126,025  Rolls-Royce PLC.........................       534,874
                                                     ------------
           BANKING (2.4%):                                       
   93,637  Abbey National PLC......................     1,752,012
  102,720  Barclays PLC............................     2,993,855
  122,454  HSBC Holdings PLC (Hong Kong Dollars)...     4,339,184
   59,534  HSBC Holdings PLC*......................     2,111,478
   58,477  Royal Bank of Scotland Group PLC........     1,190,009
                                                     ------------
                                                       12,386,538
                                                     ------------
           BEVERAGES & TOBACCO (0.6%):                           
  240,212  Diageo PLC..............................     2,502,852
   51,361  Scottish & Newcastle PLC................       536,362
                                                     ------------
                                                        3,039,214
                                                     ------------
           BREWERY (0.2%):                                       
   62,127  Bass PLC................................       903,412
                                                     ------------
           BROADCASTING/CABLE (0.2%):                            
  114,000  British Sky Broadcasting Group PLC......     1,053,930
                                                     ------------
           BUILDING PRODUCTS (0.1%):                             
   58,313  Williams Holdings.......................       385,140
                                                     ------------
           CHEMICALS (0.3%):                                     
   40,448  BOC Group PLC...........................       793,789
   60,251  Imperial Chemical Industries PLC........       595,485
                                                     ------------
                                                        1,389,274
                                                     ------------
           COMPUTER SOFTWARE (0.0%):                             
       25  Mysis PLC...............................           214
                                                     ------------
           DISTRIBUTION (0.4%):                                  
  260,409  BG PLC..................................     1,593,699
  279,174  Centrica PLC............................       657,893
                                                     ------------
                                                        2,251,592
                                                     ------------
           DIVERSIFIED (0.3%):                                   
  120,000  Rentokil Initial PLC....................       468,161
  219,492  Siebe PLC...............................     1,038,821
                                                     ------------
                                                        1,506,982
                                                     ------------
           ELECTRIC UTILITY (0.3%):                              
  101,653  National Grid Group PLC.................       703,835
   79,283  Scottish Power PLC......................       686,106
                                                     ------------
                                                        1,389,941
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.4%):                       
   35,374  Electrocomponents PLC...................       261,793
  180,203  General Electric Co., PLC...............     1,823,627
                                                     ------------
                                                        2,085,420
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

UNITED KINGDOM (CONTINUED)                                                      

                                                                [Download Table]
                                                               
         ENERGY (2.1%):                                        
604,673  British Petroleum Co., PLC..............  $ 10,827,739
                                                   ------------
         FINANCE (1.2%):                                       
123,210  Halifax PLC.............................     1,470,215
362,806  Lloyds TSB Group PLC....................     4,903,966
                                                   ------------
                                                      6,374,181
                                                   ------------
         FOOD & HOUSEHOLD PRODUCTS (0.5%):                     
134,004  Cadbury Schweppes PLC...................       855,484
192,810  Unilever PLC............................     1,746,057
                                                   ------------
                                                      2,601,541
                                                   ------------
         FOOD PRODUCTS (0.2%):                                 
 65,912  Associated British Foods PLC............       430,394
 15,000  Compass Group...........................       148,724
 37,080  Tate & Lyle PLC.........................       232,920
 19,834  Unigate PLC.............................       125,995
                                                   ------------
                                                        938,033
                                                   ------------
         GAS & ELECTRIC UTILITY (0.1%):                        
 85,371  National Power PLC......................       624,406
                                                   ------------
         HEALTH & PERSONAL CARE (2.1%):                        
236,685  Glaxo Wellcome PLC......................     6,573,785
110,132  Zeneca Group PLC........................     4,267,114
                                                   ------------
                                                     10,840,899
                                                   ------------
         INSURANCE (2.0%):                                     
102,941  Allied Zurich PLC.......................     1,285,957
 60,568  Boots Co., PLC..........................       722,733
 17,700  Bps Sun Life & Provincial Holdings             126,875
         PLC.....................................              
 57,041  Commercial Union PLC....................       819,564
 83,616  Great Universal Stores PLC..............       935,149
337,628  Legal & General Group PLC...............       858,177
189,526  Marks & Spencer PLC.....................     1,102,387
128,433  Prudential Corp., PLC...................     1,900,996
 96,855  Royal & Sun Alliance Insurance Group           870,997
         PLC.....................................              
126,338  Sainsbury (J) PLC.......................       794,595
441,269  Tesco PLC...............................     1,144,216
                                                   ------------
                                                     10,561,646
                                                   ------------
         LEISURE (0.2%):                                       
 60,431  Granada Group PLC*......................     1,127,847
                                                   ------------
         MACHINERY & EQUIPMENT (0.2%):                         
 58,800  GKN PLC.................................     1,006,575
                                                   ------------
         METALS (0.2%):                                        
 71,082  Rio Tinto PLC, Registered...............     1,183,212
                                                   ------------
         OIL & GAS (0.1%):                                     
 14,642  Burmah Castrol PLC*.....................       278,809
                                                   ------------
         PAPER PRODUCTS (0.0%):                                
 19,673  Rexam PLC -- B Shares*..................        29,925
                                                   ------------

CONTINUED 
56

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Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

UNITED KINGDOM (CONTINUED)                                                      

                                                                [Download Table]
                                                                 
           PHARMACEUTICALS (0.9%):                               
  371,734  SmithKline Beecham PLC..................  $  4,825,416
                                                     ------------
           PRINTING & PUBLISHING (0.5%):                         
   47,573  Pearson PLC.............................       962,113
   94,996  Reed International PLC..................       638,650
   97,327  Reuters Group PLC.......................     1,281,796
                                                     ------------
                                                        2,882,559
                                                     ------------
           RAILROADS (0.1%):                                     
   33,667  Railtrack Group PLC.....................       686,717
                                                     ------------
           REAL ESTATE (0.2%):                                   
   25,421  Hammerson PLC...........................       188,935
   44,945  Land Securities PLC.....................       602,907
                                                     ------------
                                                          791,842
                                                     ------------
           RETAIL -- GENERAL MERCHANDISE (0.2%):                 
   90,385  Kingfisher PLC..........................     1,040,772
                                                     ------------
           TELECOMMUNICATIONS (2.4%):                            
  428,388  British Telecommunications PLC..........     7,157,840
  159,526  Cable & Wireless PLC....................     2,030,546
  205,400  Vodafone Group PLC......................     4,060,101
                                                     ------------
                                                       13,248,487
                                                     ------------
           TELECOMMUNICATIONS -- EQUIPMENT (0.0%):               
   22,300  Racal Electronic PLC....................       135,861
                                                     ------------
           TOBACCO (0.2%):                                       
  102,941  British American Tobacco................       960,614
                                                     ------------
           TRANSPORTATION (0.3%):                                
   88,901  British Airways PLC.....................       611,337
   52,509  Peninsular & Oriental Steam Navigation         788,798
           Co......................................              
                                                     ------------
                                                        1,400,135
                                                     ------------
           WATER UTILITY (0.1%):                                 
      257  Hyder PLC...............................         3,034
      429  Thames Water PLC........................         6,830
   46,044  United Utilities PLC....................       561,763
                                                     ------------
                                                          571,627
                                                     ------------
                                                      101,235,927
                                                     ------------
           TOTAL COMMON STOCKS.....................   507,538,406
                                                     ------------

CORPORATE NOTES & BONDS (0.0%):                                  
AUSTRALIA (0.0%):                                                
           METALS & MINING (0.0%):                               
   15,796  Westralian Sands........................        10,456
                                                     ------------
           TOTAL CORPORATE NOTES & BONDS...........        10,456
                                                     ------------

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
FLOATING RATE NOTES (0.0%):                                      
ITALY (0.0%):                                                    
           FINANCE (0.0%):                                       
  207,211  Tecnost International NV................  $    217,516
                                                     ------------
           TOTAL FLOATING RATE NOTES...............       217,516
                                                     ------------

INVESTMENT COMPANIES (1.7%):                                     
UNITED STATES (1.7%):                                            
           INDUSTRY NOT SPECIFIED (1.7%):                        
9,135,916  Federated Prime Value Obligations Money      9,135,916
           Market Fund.............................              
                                                     ------------
           TOTAL INVESTMENT COMPANIES..............     9,135,916
                                                     ------------

PREFERRED STOCKS (0.6%):                                         
AUSTRALIA (0.2%):                                                
           PRINTING & PUBLISHING (0.2%):                         
  133,976  News Corp., Ltd.........................     1,020,725
                                                     ------------
GERMANY (0.4%):                                                  
           AUTOMOTIVE (0.0%):                                    
    5,270  Den Volkswagen..........................       194,838
                                                     ------------
           COMPUTER SOFTWARE (0.3%):                             
    3,300  SAP AG..................................     1,318,741
                                                     ------------
           GAS & ELECTRIC UTILITY (0.1%):                        
   16,540  RWE AG*.................................       574,830
                                                     ------------
                                                        2,088,409
                                                     ------------
           TOTAL PREFERRED STOCKS..................     3,109,134
                                                     ------------

RIGHTS (0.0%):                                                   
AUSTRALIA (0.0%):                                                
           MANUFACTURING -- CAPITAL GOODS (0.0%):                
   27,944  Email Ltd. Rights*......................           604
                                                     ------------
FRANCE (0.0%):                                                   
           CONSTRUCTION (0.0%):                                  
    1,466  Bouygues SA Rights*.....................         3,901
                                                     ------------
ITALY (0.0%):                                                    
           BUILDING PRODUCTS (0.0%):                             
      190  Cementir SpA Rights*....................             0
                                                     ------------
           OFFICE EQUIPMENT & SERVICES (0.0%):                   
  179,696  Olivetti SpA Rights*....................        24,184
                                                     ------------
MALAYSIA (0.0%):                                                 
           FINANCE (0.0%):                                       
   23,000  Rashid Hussain Berhad Rights*...........             0
                                                     ------------
PORTUGAL (0.0%):                                                 
           TELECOMMUNICATIONS (0.0%):                            
   13,000  Portugal Telecom SA Rights*.............           134
                                                     ------------
SPAIN (0.0%):                                                    
           ENGINEERING (0.0%):                                   
   16,863  Autopista Concesionaria Espanola SA              9,739
           Rights*.................................              
                                                     ------------

CONTINUED 
57

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Kent Funds                                
            INTERNATIONAL GROWTH
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
RIGHTS (CONTINUED)                                               

SPAIN (CONTINUED)                                                               

                                                                [Download Table]
                                                                  
           REAL ESTATE (0.0%):                                    
    4,268  Metrovacesa Sa Rights*..................  $      4,137 
                                                     ------------ 
                                                           13,876 
                                                     ------------ 
           TOTAL RIGHTS............................        42,699 
                                                     ------------ 

SHORT-TERM SECURITIES HELD AS                                     
COLLATERAL (9.5%):                                                
           COMMERCIAL PAPER (5.3%):                               
1,800,000  Ameritech Capital Funding Corp., 5.12%,      1,794,042 
           7/23/99.................................               
1,500,000  Bell South Telecommunications, 5.16%,        1,498,044 
           7/9/99..................................               
2,000,000  Cargill Inc., 5.65%, 7/1/99.............     2,000,000 
2,000,000  Coca-Cola Co., 5.13%, 7/30/99...........     1,991,393 
1,500,000  Daimler, 5.14%, 8/11/99.................     1,490,936 
2,000,000  R.R. Donnelley & Sons Co., 5.26%,            1,994,235 
           7/20/99.................................               
2,000,000  Duke Energy, 5.50%, 7/1/99..............     2,000,000 
2,000,000  Ford Motor Credit Corp., 5.18%,              1,995,379 
           7/16/99.................................               
1,000,000  Gannett Co., 5.09%, 7/19/99.............       997,260 
1,500,000  General Electric Capital Corp., 5.10%,       1,490,936 
           8/11/99.................................               
1,500,000  General Motors Acceptance Corp., 5.09%,      1,491,372 
           8/9/99..................................               
1,500,000  GTE Funding Corp., 5.04%, 7/8/99........     1,496,585 
1,500,000  H.J. Heinz Co., 5.14%, 8/19/99..........     1,489,188 
2,000,000  Mobil Corp., 5.50%, 7/1/99..............     2,000,000 
2,000,000  Nestle Capital Corp., 5.23%, 7/1/99.....     2,000,000 
2,000,000  UBS Finance, 5.50%, 7/1/99..............     2,000,000 
                                                     ------------ 
                                                       27,729,370 
                                                     ------------ 
           REPURCHASE AGREEMENTS (3.4%):                          
2,000,272  Chase Securities Inc., 4.90%, 7/1/99         2,000,272 
           (Collateralized by $2,001,517 various                  
           Corporate Notes & Bonds, 6.25%-7.25%,                  
           6/30/01-5/15/16, market value                          
           $2,000,114).............................               
3,965,573  Goldman Sachs & Co., 5.20%*, 7/1/99          3,965,573 
           (Collateralized by $6,392,861 various                  
           Government Agency Securities, 4.50%-                   
           12.50%, 3/15/01-6/20/29, market value                  
           $4,044,300).............................               
7,015,022  JP Morgan Securities, 4.90%*, 7/1/99         7,015,022 
           (Collateralized by $32,869,895 various                 
           Government Agency Securities, 6.00%-                   
           9.00%, 1/15/05-1/15/29, market value                   
           $7,149,101).............................               
5,002,067  Prudential Securities Inc., 4.90%*,          5,002,067 
           7/1/99 (Collateralized by $9,486,290                   
           various Government Agency Securities,                  
           5.50%-12.50%, 1/15/01-6/20/29, market                  
           value $5,100,000).......................               
                                                     ------------ 
                                                       17,982,934 
                                                     ------------ 
           TIME DEPOSITS (0.8%):                                  
2,000,323  Barclays Bank PLC London, 5.81%,             2,000,323 
           7/1/99..................................               

                           SECURITY                     MARKET    
 SHARES                  DESCRIPTION                    VALUE     
---------  ----------------------------------------  ------------ 
                                                                  
SHORT-TERM SECURITIES HELD AS                                     
COLLATERAL (CONTINUED)                                            

           TIME DEPOSITS (CONTINUED)                              
2,000,326  Canadian Imperial Bank Commerce Cay,      $  2,000,326 
           5.88%, 7/1/99...........................               
                                                     ------------ 
                                                        4,000,649 
                                                     ------------ 
           TOTAL SHORT-TERM SECURITIES HELD AS                    
           COLLATERAL..............................    49,712,953 
                                                     ------------ 

WARRANTS (0.0%):                                                  
GERMANY (0.0%):                                                   
           INSURANCE (0.0%):                                      
      209  Munchener Ruckversicherungs Warrants             6,682 
           *.......................................               
                                                     ------------ 
HONG KONG (0.0%):                                                 
           REAL ESTATE (0.0%):                                    
   11,529  Chinese Estates Ltd. Warrants *.........           951 
   11,529  Chinese Estates Ltd. Warrants*..........           743 
    5,200  Kumagai Gumi Company Warrants *.........           912 
                                                     ------------ 
                                                            2,606 
                                                     ------------ 
                                                            2,606 
                                                     ------------ 
ITALY (0.0%):                                                     
           FINANCIAL -- BANKING (0.0%):                           
    8,395  Mediobanca Warrants *...................        18,353 
                                                     ------------ 
           TOTAL WARRANTS..........................        27,641 
                                                     ------------ 
TOTAL INVESTMENTS (COST $466,372,109) (A) --                      
108.7%.............................................   569,794,721 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (8.7)%....   (45,598,433)
                                                     ------------ 
TOTAL NET ASSETS -- 100.0%.........................  $524,196,288 
                                                     ------------ 
                                                     ------------ 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $140,647,925 
Unrealized depreciation...........................   (37,225,313)
                                                    ------------ 
Net unrealized appreciation.......................  $103,422,612 
                                                    ------------ 
                                                    ------------ 

(b)  144a security which is restricted as to resale to institutional investors. 
This security has been deemed liquid.                                 
(c)  A portion of this security was loaned as of June 30, 1999.                 
*  Non-income producing                                                     
AB - Aktiebolag (Swedish Stock Company)                                         
AG - Aktiengesellschaft (German Stock Company)                                  
NV - Naamloze Vennootschap (Dutch Corporation)                                  
PL - Public Limited Company (British)                                           
SA - Sociedad Anonima (Spanish Corporation)                                     
Sp - Societa per Azioni (Italian Corporation)                                   

SEE NOTES TO FINANCIAL STATEMENTS.
58

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (98.6%):                                           
           ADVERTISING (0.2%):                                   
   11,100  Interpublic Group Cos., Inc.............  $    961,538
   13,400  Omnicom Group...........................     1,072,000
                                                     ------------
                                                        2,033,538
                                                     ------------
           AEROSPACE & DEFENSE (0.8%):                           
   77,592  Boeing Co...............................     3,428,596
   10,100  General Dynamics Corp. (c)..............       691,850
   31,288  Lockheed Martin Corp....................     1,165,478
    5,500  Northrop Grumman Corp...................       364,719
   26,900  Raytheon Co., Class B...................     1,893,088
                                                     ------------
                                                        7,543,731
                                                     ------------
           AGRICULTURE (0.1%):                                   
   19,100  Pioneer Hi-Bred, Inc....................       743,706
                                                     ------------
           APPLIANCES & HOUSEHOLD PRODUCTS (0.1%):               
    7,200  Maytag Corp.............................       501,750
    6,100  Whirlpool Corp..........................       451,400
                                                     ------------
                                                          953,150
                                                     ------------
           AUTO/TRUCK -- ORIGINAL EQUIPMENT (0.4%):              
    3,400  Cummins Engine, Inc. (c)................       194,225
   13,232  Dana Corp...............................       609,499
   41,484  Delphi Automotive Systems Corp..........       770,046
    5,700  Eaton Corp..............................       524,400
    5,320  Navistar International Corp.*...........       266,000
    6,250  PACCAR, Inc.............................       333,594
    9,500  TRW, Inc................................       521,313
                                                     ------------
                                                        3,219,077
                                                     ------------
           AUTO/TRUCK -- REPLACEMENT EQUIPMENT (0.1%):           
   14,325  Genuine Parts Co........................       501,375
                                                     ------------
           AUTOMOTIVE (1.0%):                                    
   96,400  Ford Motor Co...........................     5,440,575
   52,200  General Motors Corp.....................     3,445,200
                                                     ------------
                                                        8,885,775
                                                     ------------
           BANKS -- CENTRAL US (0.2%):                           
   55,000  Firstar Corp. (c).......................     1,540,000
                                                     ------------
           BANKS -- MAJOR REGIONAL (3.9%):                       
   60,600  Bank of New York Co., Inc...............     2,223,263
   93,711  Bank One Corp...........................     5,581,660
   23,600  BankBoston Corp.........................     1,206,550
   12,350  Comerica, Inc...........................       734,053
   78,970  First Union Corp........................     3,711,589
   45,314  Fleet Financial Group, Inc..............     2,010,809
   36,300  KeyCorp.................................     1,166,138
   41,600  Mellon Bank Corp........................     1,513,200
   26,000  National City Corp......................     1,703,000
    8,800  Northern Trust Corp.....................       853,600
   24,000  PNC Bank Corp. (c)......................     1,383,000
    8,500  Republic New York Corp..................       579,594
   13,800  Summit Bancorp..........................       577,013
   25,500  SunTrust Banks, Inc.....................     1,770,656
   58,062  U.S. Bancorp............................     1,974,108


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

BANKS -- MAJOR REGIONAL (CONTINUED)                       

                                                                [Download Table]
                                                               
 16,200  Wachovia Corp. (c)......................  $  1,386,113
131,000  Wells Fargo Co..........................     5,600,249
                                                   ------------
                                                     33,974,595
                                                   ------------
         BANKS -- MIDWEST (0.2%):                              
 21,200  Fifth Third Bancorp.....................     1,411,125
 16,770  Huntington Bancshares...................       586,950
                                                   ------------
                                                      1,998,075
                                                   ------------
         BANKS -- MONEY CENTER (2.1%):                         
137,942  Bank Of America Corp....................    10,112,872
 24,800  BB&T Corp...............................       909,850
 67,416  Chase Manhattan Corp....................     5,839,911
 13,900  J.P. Morgan & Co., Inc..................     1,952,950
                                                   ------------
                                                     18,815,583
                                                   ------------
         BANKS -- NORTHEAST (0.1%):                            
 12,800  State Street Corp.......................     1,092,800
                                                   ------------
         BANKS -- SOUTH (0.1%):                                
 14,250  AmSouth Bancorporation (c)..............       330,422
 13,200  SouthTrust Corp.........................       506,550
                                                   ------------
                                                        836,972
                                                   ------------
         BEVERAGES -- ALCOHOLIC (0.4%):                        
  2,900  Adolph Coors Co.........................       143,550
 38,070  Anheuser-Busch Co., Inc.................     2,700,591
  5,500  Brown-Forman Corp.......................       358,531
                                                   ------------
                                                      3,202,672
                                                   ------------
         BEVERAGES -- SOFT DRINKS (1.9%):                      
196,400  Coca-Cola Co............................    12,274,999
116,900  PepsiCo, Inc............................     4,522,569
                                                   ------------
                                                     16,797,568
                                                   ------------
         BROADCASTING/CABLE (0.8%):                            
 25,800  Clear Channel Communications, Inc.*.....     1,778,588
 59,000  Comcast Corp., Special Class A..........     2,267,813
 48,400  MediaOne Group, Inc.*...................     3,599,749
                                                   ------------
                                                      7,646,150
                                                   ------------
         BUILDING & CONSTRUCTION -- MISCELLANEOUS (0.1%):      
  3,200  Armstrong World Industries, Inc.........       185,000
 27,000  Masco Corp..............................       779,625
  4,400  Owens-Corning Fiberglass Corp...........       151,250
                                                   ------------
                                                      1,115,875
                                                   ------------
         BUILDING -- HEAVY CONSTRUCTION (0.0%):                
  6,000  Fluor Corp..............................       243,000
  3,300  Foster Wheeler Corp.....................        46,613
                                                   ------------
                                                        289,613
                                                   ------------
         BUILDING -- MAINTENANCE & SERVICE (0.0%):             
 10,300  Ecolab, Inc.............................       449,338
                                                   ------------
         BUILDING -- MOBILE/MANUFACTURING & RECREATIONAL       
         VEHICLES (0.0%):                                      
  2,800  Fleetwood Enterprises, Inc..............        74,025
                                                   ------------

CONTINUED 
59

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           BUILDING -- RESIDENTIAL/COMMERCIAL (0.0%):            
    4,800  Centex Corp.............................  $    180,300
    3,840  Kaufman & Broad Home Corp...............        95,520
    3,500  Pulte Corp..............................        80,938
                                                     ------------
                                                          356,758
                                                     ------------
           BUILDING PRODUCTS -- RETAIL/WHOLESALE (1.0%):         
  117,462  Home Depot, Inc.........................     7,568,958
   29,600  Lowe's Cos., Inc........................     1,677,950
                                                     ------------
                                                        9,246,908
                                                     ------------
           BUILDING PRODUCTS -- WOOD (0.1%):                     
    8,900  Louisiana-Pacific Corp..................       211,375
   15,850  Weyerhaeuser Co.........................     1,089,688
                                                     ------------
                                                        1,301,063
                                                     ------------
           BUSINESS EQUIPMENT & SERVICES (0.6%):                 
   15,200  AES Corp.*..............................       883,500
   39,300  Electronic Data Systems Corp............     2,222,906
   20,000  Office Depot, Inc.*.....................       441,250
   19,500  Paychex, Inc............................       621,563
   36,700  Staples, Inc.*..........................     1,135,406
                                                     ------------
                                                        5,304,625
                                                     ------------
                                                     ------------
           BUSINESS SERVICES (0.0%):                             
    7,800  H & R Block, Inc........................       390,000
                                                     ------------
           CAPITAL GOODS (0.3%):                                 
   56,300  CBS Corp.*..............................     2,445,531
                                                     ------------
           CHEMICALS -- DIVERSIFIED (1.5%):                      
   17,600  Dow Chemical Co.........................     2,233,000
   89,700  E.I. du Pont de Nemours & Co............     6,127,632
    6,300  Eastman Chemical Co.....................       326,025
    8,100  Hercules, Inc...........................       318,431
   49,900  Monsanto Co.............................     1,967,931
   14,000  PPG Industries, Inc.....................       826,875
   16,977  Rohm & Haas Co. (c).....................       727,894
   10,600  Union Carbide Corp......................       516,750
    6,200  W.R. Grace & Co.*.......................       113,925
                                                     ------------
                                                       13,158,463
                                                     ------------
           CHEMICALS -- SPECIALTY (0.3%):                        
   18,300  Air Products & Chemical, Inc............       736,575
   11,437  Engelhard Corp..........................       258,762
    4,800  Great Lakes Chemical Corp...............       221,100
    5,200  Nalco Chemical Co.......................       269,750
   12,600  Praxair, Inc............................       616,613
    8,000  Sigma-Aldrich Corp......................       275,500
                                                     ------------
                                                        2,378,300
                                                     ------------
           COMMERCIAL SERVICES (0.1%):                           
   61,219  Cendant Corp.*..........................     1,254,990
                                                     ------------
           COMPUTER SOFTWARE (5.1%):                             
    4,900  Adobe Systems, Inc......................       402,566
   42,918  Computer Associates International,           2,360,490
           Inc.....................................              
   29,300  Compuware Corp.*........................       932,106
  406,100  Microsoft Corp.*........................    36,625,143


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

COMPUTER SOFTWARE (CONTINUED)                             

                                                                [Download Table]
                                                               
114,712  Oracle Corp.*...........................  $  4,258,682
 21,026  Parametric Technology Corp.*............       291,736
                                                   ------------
                                                     44,870,723
                                                   ------------
         COMPUTERS -- LOCAL AREA NETWORK (2.0%):               
 28,600  3Com Corp.*.............................       763,263
 13,400  Cabletron Systems*......................       174,200
251,700  Cisco Systems, Inc.*....................    16,187,455
 26,900  Novell, Inc.*...........................       712,850
                                                   ------------
                                                     17,837,768
                                                   ------------
         COMPUTERS -- MAINFRAME (2.2%):                        
144,400  IBM Corp................................    18,663,699
 20,800  Unisys Corp.*...........................       809,900
                                                   ------------
                                                     19,473,599
                                                   ------------
         COMPUTERS -- MEMORY DEVICES (0.5%):                   
 80,000  EMC Corp.*..............................     4,400,000
 19,400  Seagate Technology, Inc.* (c)...........       497,125
                                                   ------------
                                                      4,897,125
                                                   ------------
         COMPUTERS -- MICRO (1.3%):                            
 10,900  Apple Computer, Inc.*...................       504,806
134,474  Compaq Computer Corp....................     3,185,353
  4,000  Data General Corp.* (c).................        58,250
202,800  Dell Computer Corp.*....................     7,503,600
 12,500  Gateway 2000, Inc.*.....................       737,500
                                                   ------------
                                                     11,989,509
                                                   ------------
         COMPUTERS -- MINI (1.4%):                             
 80,900  Hewlett-Packard Co......................     8,130,450
 14,900  Silicon Graphics, Inc.*.................       243,988
 61,400  Sun Microsystems, Inc.*.................     4,228,925
                                                   ------------
                                                     12,603,363
                                                   ------------
         COMPUTERS -- NETWORKING PRODUCTS (0.0%):              
  1,000  Network Appliance Inc.*.................        55,875
                                                   ------------
         COMPUTERS -- SERVICES (0.6%):                         
 49,100  Automatic Data Processing, Inc..........     2,160,399
 11,400  Ceridian Corp.*.........................       372,638
 12,700  Computer Sciences Corp.*................       878,681
 11,700  Equifax, Inc............................       417,544
 35,300  First Data Corp.........................     1,727,494
  2,100  Shared Medical Systems Corp.............       137,025
                                                   ------------
                                                      5,693,781
                                                   ------------
         CONSUMER DURABLE (0.1%):                              
 10,700  Danaher Corp............................       621,938
                                                   ------------
         CONSUMER NON-DURABLE (0.1%):                          
 33,800  Coca-Cola Enterprises, Inc..............     1,039,350
                                                   ------------
         CONSUMER PRODUCTS -- MISCELLANEOUS (0.0%):            
  5,700  American Greetings Corp., Class A.......       171,712
  2,795  Jostens, Inc............................        58,870
  4,700  Tupperware Corp.........................       119,850
                                                   ------------
                                                        350,432
                                                   ------------

CONTINUED 
60

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           CONSUMER SERVICES (0.3%):                             
   47,400  Carnival Cruise Lines...................  $  2,298,900
                                                     ------------
           CONTAINERS & PACKAGING (0.1%):                        
   12,400  Owens-Illinois, Inc.*...................       405,325
    6,616  Sealed Air Corp.* (c)...................       429,213
                                                     ------------
                                                          834,538
                                                     ------------
           CONTAINERS -- METAL & GLASS (0.0%):                   
    2,500  Ball Corp...............................       105,625
    9,700  Crown Cork & Seal Co., Inc..............       276,450
                                                     ------------
                                                          382,075
                                                     ------------
           CONTAINERS -- PAPER & PLASTIC (0.0%):                 
    4,100  Bemis Co................................       162,975
                                                     ------------
           COSMETICS & TOILETRIES (0.9%):                        
    4,500  Alberto-Culver Co., Class B.............       119,813
   20,900  Avon Products, Inc......................     1,159,950
   88,364  Gillette Co.............................     3,622,923
    8,500  International Flavors & Fragrances, Inc.       377,188
           (c).....................................              
   43,140  Kimberly-Clark Corp.....................     2,458,980
                                                     ------------
                                                        7,738,854
                                                     ------------
           DIVERSIFIED (4.9%):                                   
   15,620  Allegheny Teledyne, Inc.................       353,403
   44,400  Allied Signal, Inc......................     2,797,199
    5,425  Crane Co................................       170,548
    2,600  Freeport-McMoran-Copper Corp.*..........       177,613
  261,100  General Electric Co. (b)................    29,504,299
   25,430  IMS Health, Inc.........................       794,688
    8,300  ITT Industries, Inc.....................       316,438
    6,800  Johnson Controls, Inc...................       471,325
   32,000  Minnesota Mining & Manufacturing Co.....     2,781,999
    3,200  National Service Industries, Inc........       115,200
   31,800  Seagram Co., Ltd........................     1,601,925
   13,600  Tenneco, Inc............................       324,700
   12,600  Textron, Inc............................     1,037,138
   38,000  United Technologies Corp................     2,724,125
                                                     ------------
                                                       43,170,600
                                                     ------------
           ELECTRICAL & ELECTRONIC (0.1%):                       
    7,000  KLA-Tencor Corp.*.......................       454,125
                                                     ------------
           ELECTRICAL COMPONENTS -- SEMICONDUCTORS (2.8%):       
   11,500  Advanced Micro Devices, Inc.*...........       207,719
   29,400  Applied Materials, Inc.*................     2,171,925
  264,200  Intel Corp..............................    15,719,899
   11,300  LSI Logic Corp.*........................       521,213
   19,700  Micron Technology, Inc.* (c)............       794,156
   13,300  National Semiconductor Corp.*...........       336,656
   15,100  Rockwell International Corp.............       917,325
   31,100  Texas Instruments, Inc..................     4,509,500
                                                     ------------
                                                       25,178,393
                                                     ------------
           ELECTRONIC -- CONNECTORS (0.0%):                      
    4,600  Thomas & Betts Corp.....................       217,350
                                                     ------------
           ELECTRONIC COMPONENTS/INSTRUMENTS (0.1%):             
   20,000  Solectron Corp.*........................     1,333,750
                                                     ------------


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           ELECTRONIC MEASURING EQUIPMENT (0.0%):                
    3,800  Tektronix, Inc. (c).....................  $    114,713
                                                     ------------
           ELECTRONICS (0.0%):                                   
    6,300  Raychem Corp............................       233,100
                                                     ------------
           ENERGY (0.0%):                                        
   15,200  Niagara Mohawk Holdings Inc.*...........       244,150
                                                     ------------
           FINANCE (1.0%):                                       
   58,054  Associates First Capital Corp., Class        2,572,517
           A.......................................              
    8,850  Bear Stearns Companies, Inc.............       413,738
   15,600  Capital One Financial Corp..............       868,725
   20,100  Franklin Resources, Inc. (c)............       816,563
   12,500  Mercantile Bancorporation...............       714,063
   10,800  Provident Cos., Inc.....................       432,000
   17,600  Regions Financial Corp..................       676,500
   13,200  SLM Holding Corp........................       604,725
   10,900  Union Planters Corp.....................       487,094
   47,269  Washington Mutual, Inc..................     1,672,140
                                                     ------------
                                                        9,258,065
                                                     ------------
           FINANCIAL -- BANKING (0.0%):                          
   21,400  Synovus Financial Corp..................       425,325
                                                     ------------
           FINANCIAL -- CONSUMER LOANS (0.5%):                   
   38,493  Household International, Inc............     1,823,606
   63,930  MBNA Corp...............................     1,957,856
   11,250  Providian Financial Corp................     1,051,875
                                                     ------------
                                                        4,833,337
                                                     ------------
           FINANCIAL -- INVESTMENT BANKER/BROKER (0.1%):         
    9,100  Lehman Brothers Holding, Inc............       566,475
   11,400  Paine Webber Group Inc. (c).............       532,950
                                                     ------------
                                                        1,099,425
                                                     ------------
           FINANCIAL -- INVESTMENT BANKERS (0.6%):               
   28,300  Merrill Lynch & Co., Inc................     2,262,231
   31,975  Schwab (Charles) Corp...................     3,513,253
                                                     ------------
                                                        5,775,484
                                                     ------------
           FINANCIAL -- MISCELLANEOUS SERVICES (1.0%):           
   36,100  American Express Co.....................     4,697,513
   46,016  Morgan Stanley, Dean Witter & Co........     4,716,640
                                                     ------------
                                                        9,414,153
                                                     ------------
           FINANCIAL -- MORTGAGE & RELATED SERVICES (1.0%):      
    9,000  Countrywide Credit Industries, Inc......       384,750
   82,600  Fannie Mae..............................     5,647,775
   54,100  Freddie Mac.............................     3,137,800
                                                     ------------
                                                        9,170,325
                                                     ------------
           FINANCIAL -- SAVINGS & LOAN (0.0%):                   
    4,500  Golden West Financial Corp..............       441,000
           FINANCIAL SERVICES -- DIVERSIFIED (1.4%):             
  269,916  Citigroup, Inc..........................    12,821,010
                                                     ------------

CONTINUED 
61

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           FOOD -- CANNED (0.3%):                                
   35,400  Campbell Soup Co........................  $  1,588,575
   28,800  H.J. Heinz Co...........................     1,443,600
                                                     ------------
                                                        3,032,175
                                                     ------------
           FOOD -- CONFECTIONARY (0.2%):                         
   11,400  Hershey Foods Corp......................       676,875
    9,300  Wm. Wrigley Jr. Co......................       837,000
                                                     ------------
                                                        1,513,875
                                                     ------------
           FOOD -- DIVERSIFIED (1.2%):                           
   22,800  Bestfoods...............................     1,128,600
   38,950  ConAgra, Inc............................     1,037,044
   12,200  General Mills, Inc......................       980,575
   32,300  Kellogg Co. (c).........................     1,065,900
   25,900  Nabisco Group Holdings..................       506,669
   10,900  Quaker Oats Co..........................       723,488
   26,140  Ralston Purina Group....................       795,636
   72,700  Sara Lee Corp...........................     1,649,381
   45,535  Unilever NV.............................     3,176,066
                                                     ------------
                                                       11,063,359
                                                     ------------
           FOOD -- FLOUR & GRAIN (0.1%):                         
   47,166  Archer-Daniels-Midland Co...............       728,125
                                                     ------------
           FOOD ITEMS -- WHOLESALE (0.1%):                       
    9,600  Supervalu, Inc..........................       246,600
   26,500  Sysco Corp..............................       790,031
                                                     ------------
                                                        1,036,631
                                                     ------------
           FOOD PRODUCTS (0.2%):                                 
   38,700  Safeway Inc.*...........................     1,915,650
                                                     ------------
           FUNERAL SERVICES (0.0%):                              
   21,800  Service Corp. International.............       419,650
                                                     ------------
           GAS & ELECTRIC UTILITY (0.1%):                        
   30,500  PG & E Corp. (c)........................       991,250
                                                     ------------
           GLASS PRODUCTS (0.1%):                                
   18,500  Corning, Inc............................     1,297,313
                                                     ------------
           HEALTH CARE (0.1%):                                   
    8,800  HCR Manor Care, Inc.*...................       212,850
   20,927  McKesson HBOC, Inc. (c).................       672,280
    5,400  Wellpoint Health Networks*..............       458,325
                                                     ------------
                                                        1,343,455
                                                     ------------
           HOME DECORATION PRODUCTS (0.1%):                      
   22,380  Newell Rubbermaid Inc. (c)..............     1,040,670
                                                     ------------
           HOTELS & LODGING (0.1%):                              
   20,800  Hilton Hotels Corp......................       295,100
   19,300  Marriott International, Inc., Class A...       721,338
                                                     ------------
                                                        1,016,438
                                                     ------------
           INSTRUMENTS -- CONTROL (0.1%):                        
   10,000  Honeywell, Inc..........................     1,158,750
                                                     ------------
           INSTRUMENTS -- SCIENTIFIC (0.1%):                     
    3,700  EG&G, Inc...............................       131,813
    3,600  Millipore Corp..........................       146,025


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

INSTRUMENTS -- SCIENTIFIC (CONTINUED)                     

                                                                [Download Table]
                                                              
 3,900  Perkin-Elmer Corp. -- PE Biosystems       $    447,525
        Group ..................................              
                                                  ------------
                                                       725,363
                                                  ------------
        INSURANCE (0.2%):                                     
13,300  Cincinnati Financial Corp. (c)..........       499,581
 9,100  Loews Corp..............................       720,038
 5,800  Progressive Corp. (c)...................       841,000
                                                  ------------
                                                     2,060,619
                                                  ------------
        INSURANCE -- ACCIDENT & HEALTH (0.1%):                
20,400  Aon Corp................................       841,500
                                                  ------------
        INSURANCE -- BROKERS (0.2%):                          
20,550  Marsh & McLennan Cos., Inc..............     1,551,525
                                                  ------------
        INSURANCE -- LIFE (0.6%):                             
21,000  AFLAC, INC..............................     1,005,375
20,098  American General Corp...................     1,514,887
25,564  Conseco, Inc............................       778,104
 8,425  Jefferson-Pilot Corp....................       557,630
11,200  Torchmark Corp..........................       382,200
 9,964  Transamerica Corp.......................       747,300
11,000  UNUM Corp.*.............................       602,250
                                                  ------------
                                                     5,587,746
                                                  ------------
        INSURANCE -- MULTI-LINE (0.5%):                       
11,370  Aetna, Inc..............................     1,016,904
16,500  CIGNA Corp..............................     1,468,499
18,600  Hartford Financial Services Group,           1,084,613
        Inc.....................................              
 7,900  MBIA, Inc...............................       511,525
 8,700  MGIC Investment Corp....................       407,813
                                                  ------------
                                                     4,489,354
                                                  ------------
        INSURANCE -- PROPERTY & CASUALTY (1.8%):              
65,398  Allstate Corp...........................     2,346,153
97,874  American International Group, Inc.......    11,457,374
13,000  Chubb Corp..............................       903,500
16,200  Lincoln National Corp...................       847,463
10,900  Safeco Corp.............................       480,963
18,734  St. Paul Cos., Inc......................       595,975
                                                  ------------
                                                    16,631,428
                                                  ------------
        INTERNET SOFTWARE (1.1%):                             
86,400  America Online, Inc.*...................     9,547,200
                                                  ------------
        LEISURE & RECREATION PRODUCTS (0.0%):                 
 7,200  Brunswick Corp..........................       200,700
                                                  ------------
        LEISURE & RECREATION/GAMING (0.1%):                   
10,100  Harrah's Entertainment, Inc.*...........       222,200
14,200  Mirage Resorts, Inc.*...................       237,850
                                                  ------------
                                                       460,050
                                                  ------------
        MACHINE TOOLS & RELATED PRODUCTS (0.0%):              
 7,000  The Black & Decker Corp.................       441,875
                                                  ------------
        MACHINERY & EQUIPMENT (0.0%):                         
 3,200  Milacron, Inc...........................        59,200
                                                  ------------

CONTINUED 
62

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           MACHINERY -- CONSTRUCTION/MINING (0.3%):              
   28,600  Caterpillar, Inc........................  $  1,716,000
   13,150  Ingersoll-Rand Co.......................       849,819
                                                     ------------
                                                        2,565,819
                                                     ------------
           MACHINERY -- ELECTRICAL (0.3%):                       
   34,900  Emerson Electric Co.....................     2,194,338
    7,600  W.W. Grainger, Inc......................       408,975
                                                     ------------
                                                        2,603,313
                                                     ------------
           MACHINERY -- FARM (0.1%):                             
    1,900  Briggs & Stratton Corp..................       109,725
    6,000  Case Corp...............................       288,750
   19,000  Deere & Co..............................       752,875
                                                     ------------
                                                        1,151,350
                                                     ------------
           MACHINERY -- GENERAL INDUSTRIAL (0.3%):               
    8,200  Cooper Industries, Inc..................       426,400
   17,800  Dover Corp..............................       680,850
   19,900  Illinois Tool Works, Inc................     1,631,800
    8,625  Parker Hannifin Corp....................       394,594
                                                     ------------
                                                        3,133,644
                                                     ------------
           MACHINERY -- MATERIAL HANDLING (0.0%):                
      600  Nacco Industries, Inc...................        44,100
                                                     ------------
           MACHINERY -- THERMAL PROCESSOR (0.0%):                
   12,700  Thermo Electron Corp.*..................       254,794
                                                     ------------
           MEDIA CONGLOMERATES (1.6%):                           
   94,920  Time Warner, Inc........................     6,834,239
   55,400  Viacom, Inc., Class B*..................     2,437,600
  163,800  Walt Disney Co.*........................     5,047,088
                                                     ------------
                                                       14,318,927
                                                     ------------
           MEDICAL -- BIOMEDICAL/GENETIC (0.3%):                 
   40,600  Amgen, Inc.*............................     2,471,525
                                                     ------------
           MEDICAL -- DRUGS (7.6%):                              
  120,900  Abbott Laboratories.....................     5,500,950
    8,000  ALZA Corp.*.............................       407,000
  105,000  American Home Products Corp.............     6,037,500
  158,300  Bristol-Myers Squibb Co.................    11,150,256
   87,600  Eli Lilly & Co..........................     6,274,350
  187,800  Merck & Co., Inc........................    13,897,199
  103,400  Pfizer, Inc.............................    11,348,149
   40,530  Pharmacia & Upjohn, Inc.................     2,302,611
  117,100  Schering-Plough Corp....................     6,206,300
   67,700  Warner-Lambert Co.......................     4,696,688
    7,500  Watson Pharmaceutical, Inc.* (c)........       262,969
                                                     ------------
                                                       68,083,972
                                                     ------------
           MEDICAL -- HEALTH MEDICAL ORGANIZATION (0.1%):        
   13,300  Humana, Inc.*...........................       172,069
   14,800  United Healthcare Corp..................       926,850
                                                     ------------
                                                        1,098,919
                                                     ------------


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           MEDICAL -- HOSPITAL (0.2%):                           
   51,449  Columbia HCA Healthcare Corp............  $  1,173,680
   24,700  Tenet Healthcare Corp.*.................       458,494
                                                     ------------
                                                        1,632,174
                                                     ------------
           MEDICAL -- OUTPATIENT/HOME CARE (0.1%):               
   33,700  HEALTHSOUTH Corp.*......................       503,394
                                                     ------------
           MEDICAL -- WHOLESALE DRUG (0.2%):                     
   21,700  Cardinal Health, Inc....................     1,391,513
                                                     ------------
           MEDICAL INSTRUMENTS (0.5%):                           
    8,900  Biomet, Inc.............................       353,775
   46,500  Medtronic, Inc..........................     3,621,188
    6,800  St. Jude Medical, Inc.*.................       242,250
                                                     ------------
                                                        4,217,213
                                                     ------------
           MEDICAL PRODUCTS (0.5%):                              
    5,300  Allergan, Inc...........................       588,300
   22,800  Baxter International, Inc...............     1,382,249
   31,300  Boston Scientific Corp.*................     1,375,244
   24,000  Guidant Corp.*..........................     1,234,500
    5,700  Mallinckrodt, Inc.......................       207,338
                                                     ------------
                                                        4,787,631
                                                     ------------
           MEDICAL/DENTAL SUPPLIES (1.3%):                       
    4,500  Bausch & Lomb, Inc......................       344,250
   19,800  Becton, Dickinson & Co..................       594,000
    4,300  C.R. Bard, Inc..........................       205,594
  107,100  Johnson & Johnson.......................    10,495,800
                                                     ------------
                                                       11,639,644
                                                     ------------
           METAL -- GOLD (0.1%):                                 
   29,700  Barrick Gold Corp.......................       575,438
   18,700  Battle Mountian Gold Co.................        45,581
   20,700  Homestake Mining Co.....................       169,481
   13,315  Newmont Mining Corp.....................       264,636
   19,700  Placer Dome, Inc........................       232,706
                                                     ------------
                                                        1,287,842
                                                     ------------
           METAL -- MISCELLANEOUS (0.0%):                        
    7,600  Cyprus Amax Minerals Co.................       115,425
   13,500  Inco, Ltd.* (c).........................       243,000
                                                     ------------
                                                          358,425
                                                     ------------
           METAL -- NON-FERROUS (0.2%):                          
   18,150  Alcan Aluminum, Ltd.....................       579,665
    3,200  Asarco, Inc.............................        60,200
   13,200  Freeport-McMoran Copper & Gold, Inc.,          236,775
           Class B*................................              
    4,600  Phelps Dodge Corp.......................       284,913
    5,100  Reynolds Metals Co......................       300,900
                                                     ------------
                                                        1,462,453
                                                     ------------
           METAL -- PROCESSING & FABRICATION (0.0%):             
    5,100  Timken Co...............................        99,450
    7,325  Worthington Industries, Inc.............       120,405
                                                     ------------
                                                          219,855
                                                     ------------

CONTINUED 
63

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           METALS (0.2%):                                        
   29,300  Alcoa Inc...............................  $  1,812,938
                                                     ------------
           MOVIE/TELEVISION PRODUCTION & DISTRIBUTION (0.0%):    
    5,600  King World Productions, Inc.*...........       194,950
                                                     ------------
           OFFICE AUTOMATION & EQUIPMENT (0.5%):                 
   11,744  IKON Office Solutions, Inc..............       176,160
   21,700  Pitney Bowes, Inc.......................     1,394,225
   52,234  Xerox Corp..............................     3,085,071
                                                     ------------
                                                        4,655,456
                                                     ------------
           OFFICE SUPPLIES & FORMS (0.1%):                       
    9,300  Avery Dennison Corp.....................       561,488
    6,400  Deluxe Corp.............................       249,200
                                                     ------------
                                                          810,688
                                                     ------------
           OIL & GAS (0.1%):                                     
    9,600  Anadarko Petroleum Corp.................       353,400
    7,700  Apache Corp.............................       300,300
                                                     ------------
                                                          653,700
                                                     ------------
           OIL & GAS -- DRILLING (0.0%):                         
    6,900  Rowan Cos., Inc.*.......................       127,219
                                                     ------------
           OIL -- FIELD SERVICES (0.5%):                         
   35,000  Halliburton Co..........................     1,583,750
   43,500  Schlumberger Ltd........................     2,770,406
                                                     ------------
                                                        4,354,156
                                                     ------------
           OIL -- INTERNATIONAL INTEGRATED (4.4%):               
   52,000  Chevron Corp............................     4,949,750
  193,700  Exxon Corp..............................    14,939,112
   62,100  Mobil Corp..............................     6,147,900
  170,900  Royal Dutch Petroleum Co., ADR..........    10,296,725
   42,600  Texaco, Inc.............................     2,662,500
                                                     ------------
                                                       38,995,987
                                                     ------------
           OIL -- PRODUCTION/PIPELINE (0.4%):                    
   16,900  Coastal Corp............................       676,000
    6,650  Columbia Gas System, Inc................       416,872
   28,000  Enron Corp..............................     2,288,999
    8,900  Sonat, Inc..............................       294,813
                                                     ------------
                                                        3,676,684
                                                     ------------
           OIL -- U.S. EXPLORATION & PRODUCTION (0.1%):          
   14,165  Burlington Resources, Inc...............       612,637
    4,100  Helmerich & Payne, Inc..................        97,631
   19,723  Union Pacific Resources Group, Inc......       321,731
                                                     ------------
                                                        1,031,999
                                                     ------------
           OIL -- U.S. INTEGRATED (0.7%):                        
    7,200  Amerada Hess Corp.......................       428,400
   26,000  Atlantic Richfield Co...................     2,172,625
    6,773  Kerr-Mcgee Corp.........................       339,920
   27,600  Occidental Petroleum Corp...............       583,050
   20,300  Phillips Petroleum Co...................     1,021,344
   19,200  Unocal Corp.............................       760,800
   24,500  USX-Marathon Group......................       797,781
                                                     ------------
                                                        6,103,920
                                                     ------------


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           OIL FIELD MACHINERY & EQUIPMENT (0.1%):               
   26,080  Baker Hughes, Inc.......................  $    873,680
    4,800  McDermott International, Inc............       135,600
                                                     ------------
                                                        1,009,280
                                                     ------------
           OIL REFINING (0.1%):                                  
    5,900  Ashland, Inc............................       236,737
    7,374  Sunoco, Inc.............................       222,603
                                                     ------------
                                                          459,340
                                                     ------------
           PAINTS & RELATED PRODUCTS (0.0%):                     
   13,700  Sherwin-Williams Co.....................       380,175
                                                     ------------
           PAPER & RELATED PRODUCTS (0.5%):                      
    4,608  Boise Cascade Corp......................       198,144
    7,600  Champion International Co...............       363,850
   17,600  Fort James Corp.........................       666,600
   14,000  Georgia Pacific Corp....................       663,250
   32,644  International Paper Co..................     1,648,522
    8,200  Mead Corp...............................       342,350
    2,400  Potlatch Corp...........................       105,450
    4,400  Temple-Inland, Inc......................       300,300
    8,050  Westvaco Corp...........................       233,450
    8,800  Williamette Industries, Inc.............       405,350
                                                     ------------
                                                        4,927,266
                                                     ------------
           PHOTOGRAPHY (0.2%):                                   
   25,800  Eastman Kodak Co........................     1,747,950
    3,589  Polaroid Corp...........................        99,146
                                                     ------------
                                                        1,847,096
                                                     ------------
           PIPELINES (0.2%):                                     
    7,600  Consolidated Natural Gas Co.............       461,700
   34,100  The Williams Companies, Inc.............     1,451,381
                                                     ------------
                                                        1,913,081
                                                     ------------
           POLLUTION CONTROL (0.4%):                             
   12,500  Browning-Ferris Industries, Inc.........       537,500
   26,300  Laidlaw, Inc............................       193,963
    9,899  Pall Corp...............................       219,634
   47,742  Waste Management, Inc.*.................     2,566,132
                                                     ------------
                                                        3,517,229
                                                     ------------
           PRINTING & PUBLISHING (0.1%):                         
   13,165  Dun & Bradstreet Corp...................       466,535
                                                     ------------
           PRINTING -- COMMERCIAL (0.0%):                        
   10,600  R.R. Donnelley & Sons Co................       392,863
                                                     ------------
           PROTECTION -- SAFETY (0.7%):                          
   65,096  Tyco International Ltd..................     6,167,846
                                                     ------------
           PUBLISHING -- BOOKS (0.1%):                           
   15,700  McGraw-Hill Cos., Inc...................       846,819
                                                     ------------
           PUBLISHING -- NEWSPAPERS (0.5%):                      
    7,500  Dow Jones & Co..........................       397,969
   22,400  Gannett, Inc............................     1,598,800
    6,300  Knight-Ridder, Inc. (c).................       346,106
   14,500  New York Times Co., Class A.............       533,781

CONTINUED 
64

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

PUBLISHING -- NEWSPAPERS (CONTINUED)                      

                                                                [Download Table]
                                                                 
    6,300  Times Mirror Co., Class A...............  $    373,275
    9,500  Tribune Co..............................       827,688
                                                     ------------
                                                        4,077,619
                                                     ------------
           PUBLISHING -- PERIODICALS (0.0%):                     
    4,300  Meredith Corp...........................       148,888
                                                     ------------
           RESTAURANTS (0.6%):                                   
   11,000  Darden Restaurants, Inc.................       239,938
  107,800  McDonald's Corp.........................     4,453,487
   12,110  Tricon Global Restaurants*..............       655,454
    9,900  Wendy's International, Inc. (c).........       280,294
                                                     ------------
                                                        5,629,173
                                                     ------------
           RETAIL (0.2%):                                        
    1,000  Best Buy*...............................        67,500
    8,600  Consolidated Stores*....................       232,200
   17,687  Dollar General Corp.....................       512,923
   12,600  Kohl's Corp.*...........................       972,563
                                                     ------------
                                                        1,785,186
                                                     ------------
           RETAIL -- APPAREL/SHOES (0.6%):                       
   68,138  Gap, Inc................................     3,432,426
   17,878  Limited, Inc............................       811,214
   11,200  Nordstrom, Inc..........................       375,200
   25,800  TJX Companies, Inc......................       859,463
                                                     ------------
                                                        5,478,303
                                                     ------------
           RETAIL -- CONSUMER ELECTRONICS (0.1%):                
    8,000  Circuit City Stores, Inc................       744,000
                                                     ------------
           RETAIL -- DISCOUNT (2.4%):                            
   17,350  Costco Cos., Inc.*......................     1,389,084
   35,100  Dayton-Hudson Corp......................     2,281,500
   39,300  Kmart Corp.*............................       645,994
   20,050  Toys 'R' Us, Inc.*......................       414,784
  354,300  Wal-Mart Stores, Inc....................    17,094,975
                                                     ------------
                                                       21,826,337
                                                     ------------
           RETAIL -- DRUG STORE (0.5%):                          
   31,100  CVS Corp................................     1,589,988
    3,200  Longs Drug Stores Corp..................       110,600
   20,600  Rite Aid Corp...........................       507,275
   79,600  Walgreen Co.............................     2,338,250
                                                     ------------
                                                        4,546,113
                                                     ------------
           RETAIL -- MAJOR DEPARTMENT STORES (0.4%):             
    5,616  Harcourt General, Inc...................       289,575
   21,000  J.C. Penney, Inc........................     1,019,813
   27,900  May Department Stores Co................     1,140,413
   30,575  Sears, Roebuck & Co.....................     1,362,497
                                                     ------------
                                                        3,812,298
                                                     ------------
           RETAIL -- REGIONAL DEPARTMENT STORES (0.1%):          
    8,500  Dillards Department Stores, Inc.........       298,563
   16,700  Federated Department Stores, Inc.*......       884,056
                                                     ------------
                                                        1,182,619
                                                     ------------
           RETAIL -- SUPERMARKETS (0.5%):                        
   33,397  Albertson's, Inc........................     1,722,033

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        

RETAIL -- SUPERMARKETS (CONTINUED)                        

                                                                [Download Table]
                                                               
  3,100  Great Atlantic & Pacific Tea Co.,         $    104,819
         Inc.....................................              
 65,400  Kroger Co.*.............................     1,827,112
 11,800  Winn-Dixie Stores, Inc..................       435,863
                                                   ------------
                                                      4,089,827
                                                   ------------
         RETAIL/WHOLESALE -- AUTO PARTS (0.0%):                
 12,000  AutoZone, Inc.* (c).....................       361,500
  4,200  Pep Boys-Manny, Moe & Jack..............        90,825
                                                   ------------
                                                        452,325
                                                   ------------
         RETAIL/WHOLESALE -- COMPUTERS (0.1%):                 
 15,856  Tandy Corp..............................       774,962
                                                   ------------
         RUBBER -- TIRES (0.1%):                               
  6,000  Cooper Tire & Rubber Co.................       141,750
 12,400  Goodyear Tire & Rubber Co...............       729,275
  6,000  The B.F. Goodrich Co. (c)...............       255,000
                                                   ------------
                                                      1,126,025
                                                   ------------
         SHOES & RELATED APPAREL (0.2%):                       
 22,500  Nike, Inc., Class B.....................     1,424,531
  4,600  Reebok International Ltd.* (c)..........        85,675
                                                   ------------
                                                      1,510,206
                                                   ------------
         SOAP & CLEANING PREPARATIONS (1.4%):                  
  9,300  Clorox, Inc.............................       993,356
 23,300  Colgate-Palmolive Co....................     2,300,875
105,800  Procter & Gamble Co.....................     9,442,650
                                                   ------------
                                                     12,736,881
                                                   ------------
         STEEL -- PRODUCERS (0.1%):                            
 10,500  Bethlehem Steel Corp.*..................        80,719
  7,000  Nucor Corp..............................       332,062
  7,140  USX-U.S. Steel Group....................       192,780
                                                   ------------
                                                        605,561
                                                   ------------
         TECHNOLOGY (0.1%):                                    
 18,800  BMC Software, Inc.*.....................     1,015,200
 18,700  Peoplesoft, Inc.* (c)...................       322,575
                                                   ------------
                                                      1,337,775
                                                   ------------
         TECHNOLOGY -- SOFTWARE (0.0%):                        
  4,700  AutoDesk, Inc...........................       138,944
                                                   ------------
         TELECOMMUNICATIONS (0.2%):                            
 35,000  Sprint Corp., PCS*......................     1,999,375
                                                   ------------
         TELECOMMUNICATIONS -- EQUIPMENT (3.1%):               
  6,955  Andrew Corp.*...........................       131,710
 13,400  General Instrument Corp.*...............       569,500
  6,200  Harris Corp.............................       242,963
239,137  Lucent Technologies, Inc. (c)...........    16,126,800
 47,800  Motorola, Inc...........................     4,529,050
 52,900  Nortel Networks Corp....................     4,592,381
  6,000  Scientific-Atlanta, Inc.................       216,000
 31,000  Tellabs, Inc.*..........................     2,094,438
                                                   ------------
                                                     28,502,842
                                                   ------------

CONTINUED 
65

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           TELECOMMUNICATIONS -- SERVICES AND EQUIPMENT (0.0%):  
   10,900  CenturyTel, Inc.........................  $    433,275
                                                     ------------
           TEXTILE -- APPAREL (0.1%):                            
    5,900  Fruit of the Loom, Inc.*................        57,525
    5,100  Liz Claiborne, Inc......................       186,150
    2,900  Russell Corp............................        56,550
    9,600  VF Corp.................................       410,400
                                                     ------------
                                                          710,625
                                                     ------------
           TEXTILE -- HOME FURNISHINGS (0.0%):                   
    1,500  Springs Industries, Inc.................        65,438
                                                     ------------
           TOBACCO (1.0%):                                       
   13,600  Fortune Brands, Inc.....................       562,700
  194,000  Philip Morris Cos., Inc.................     7,796,375
        0  R.J. Reynolds Tobacco*..................            11
   14,800  U.S.T., Inc.............................       432,900
                                                     ------------
                                                        8,791,986
                                                     ------------
           TOOLS -- HAND HELD (0.0%):                            
    4,650  Snap-On, Inc............................       168,272
    7,200  The Stanley Works.......................       231,750
                                                     ------------
                                                          400,022
                                                     ------------
           TOYS/GAME/HOBBY (0.1%):                               
   15,600  Hasbro, Inc.............................       435,825
   33,147  Mattel, Inc.............................       876,324
                                                     ------------
                                                        1,312,149
                                                     ------------
           TRANSPORTATION (0.1%):                                
    8,700  Kansas City Southern Industries, Inc....       555,169
                                                     ------------
           TRANSPORTATION -- AIR FREIGHT (0.1%):                 
   23,520  FDX Corp.*..............................     1,275,960
                                                     ------------
           TRANSPORTATION -- AIRLINE (0.3%):                     
   12,200  AMR Corp.*..............................       832,650
   11,300  Delta Air Lines, Inc....................       651,163
   26,825  Southwest Airlines Co...................       834,927
    7,000  US Airways Group, Inc.*.................       304,938
                                                     ------------
                                                        2,623,678
                                                     ------------
           TRANSPORTATION -- EQUIPMENT & LEASING (0.0%):         
    5,700  Ryder Systems, Inc......................       148,200
                                                     ------------
           TRANSPORTATION -- RAILROAD (0.4%):                    
   37,400  Burlington Northern Santa Fe Corp.......     1,159,400
   17,308  CSX Corp................................       784,269
   30,200  Norfolk Southern Corp...................       909,775
   19,700  Union Pacific Corp......................     1,148,756
                                                     ------------
                                                        4,002,200
                                                     ------------
           UTILITIES (0.1%):                                     
    9,000  CMS Energy Corp.........................       376,875
    7,800  Florida Progress Corp...................       322,238
                                                     ------------
                                                          699,113
                                                     ------------


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
COMMON STOCKS (CONTINUED)                                        
           UTILITIES -- ELECTRIC POWER (1.8%):                   
   10,900  Ameren Corp.............................  $    418,288
   15,100  American Electric Power Co..............       567,194
   12,100  Carolina Power & Light Co...............       518,031
   16,900  Central & South West Corp...............       395,038
   12,635  CINergy Corp............................       404,320
   18,600  Consolidated Edison, Inc................       841,649
   11,900  Constellation Energy Group..............       352,538
   11,600  Detroit Edison Co.......................       464,000
   15,550  Dominion Resources, Inc.................       673,509
   28,806  Duke Energy Corp........................     1,566,325
   28,100  Edison International....................       751,675
   19,600  Entergy Corp............................       612,500
   18,900  First Energy Corp.......................       585,900
   14,400  Florida Power & Light, Inc..............       786,599
   10,200  General Public Utilities Corp...........       430,313
    9,000  New Century Energies Inc................       349,313
   12,200  Northern States Power Co................       295,088
   23,700  PacifiCorp..............................       435,488
   17,900  Peco Energy Corp........................       752,919
   12,100  PP&L Resources, Inc.....................       372,075
   17,800  Public Service Enterprise Group, Inc....       727,575
   22,644  Reliant Energy, Inc.....................       625,541
   55,600  Southern Co.............................     1,473,399
   22,470  Texas Utilities Co......................       926,887
   17,300  Unicom Corp.............................       667,131
                                                     ------------
                                                       15,993,295
                                                     ------------
           UTILITIES -- GAS DISTRIBUTION (0.1%):                 
    1,700  Eastern Enterprises.....................        67,575
    3,900  NICOR, Inc..............................       148,444
    2,600  ONEOK, Inc..............................        82,550
    2,900  People's Energy Corp....................       109,294
   19,125  Sempra Energy...........................       432,703
                                                     ------------
                                                          840,566
                                                     ------------
           UTILITIES -- TELEPHONE (8.2%):                        
   21,900  Alltel Corp.............................     1,565,850
   87,600  Ameritech Corp..........................     6,438,600
  253,101  AT&T Corp...............................    14,126,199
  123,640  Bell Atlantic Corp......................     8,082,965
  155,400  BellSouth Corp..........................     7,284,375
   13,700  Frontier Corp...........................       808,300
   76,900  GTE Corp................................     5,820,369
  148,099  MCI Worldcom, Inc.*.....................    12,773,538
   22,900  Nextel Communications, Inc. - Class A*       1,149,294
           (c).....................................              
  155,818  SBC Communications, Inc.................     9,037,444
   68,900  Sprint Corp.............................     3,638,781
   40,060  US West, Inc............................     2,353,525
                                                     ------------
                                                       73,079,240
                                                     ------------
           TOTAL COMMON STOCKS.....................   892,747,176
                                                     ------------
INVESTMENT COMPANIES (0.8%):                                     
6,882,183  Federated Prime Value Obligations Money      6,882,183
           Market Fund.............................              
           TOTAL INVESTMENT COMPANIES..............     6,882,183
                                                     ------------

CONTINUED 
66

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Kent Funds                                
    INDEX EQUITY
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
SHORT-TERM SECURITIES HELD AS                                    
COLLATERAL (2.4%):                                               
           COMMERCIAL PAPER (1.7%):                              
1,000,000  Ameritech Capital Funding Corp., 5.12%,   $    996,690
           7/23/99.................................              
  800,000  Bell South Telecommunications, 5.16%,          798,957
           7/9/99..................................              
1,000,000  Cargill Inc., 5.65%, 7/1/99.............     1,000,000
1,000,000  Coca-Cola Co., 5.13%, 7/30/99...........       995,697
1,000,000  Daimler, 5.14%, 8/11/99.................       993,957
1,000,000  R.R. Donnelley & Sons Co., 5.26%,              997,117
           7/20/99.................................              
1,000,000  Duke Energy, 5.50%, 7/1/99..............     1,000,000
1,000,000  Ford Motor Credit Corp., 5.18%,                997,690
           7/16/99.................................              
1,000,000  Gannett Co., 5.09%, 7/19/99.............       997,260
1,000,000  General Electric Capital Corp., 5.10%,         993,957
           8/11/99.................................              
1,000,000  General Motors Acceptance Corp., 5.09%,        994,248
           8/9/99..................................              
  600,000  GTE Funding Corp., 5.04%, 7/8/99........       598,634
1,000,000  H.J. Heinz Co., 5.14%, 8/19/99..........       992,792
1,000,000  Mobil Corp., 5.50%, 7/1/99..............     1,000,000
1,000,000  Nestle Capital Corp., 5.23%, 7/1/99.....     1,000,000
1,000,000  UBS Finance, 5.50%, 7/1/99..............     1,000,000
                                                     ------------
                                                       15,356,999
                                                     ------------
           REPURCHASE AGREEMENTS (0.6%):                         
1,949,265  Chase Securities Inc. 4.90%, 7/1/99          1,949,265
           (Collateralized by $1,950,478 various                 
           Corporate Notes & Bonds, 6.25%-7.25%,                 
           6/30/01-5/15/16, market value                         
           $1,949,111).............................              
3,537,511  Goldman Sachs & Co. 5.20%, 7/1/99            3,537,511
           (Collateralized by $5,702,787 various                 
           Government Agency Securities, 4.50%-                  
           12.50%, 3/15/01-6/20/29, market value                 
           $3,607,740).............................              
                                                     ------------
                                                        5,486,776
                                                     ------------
           TIME DEPOSITS (0.1%):                                 
  500,081  Barclays Bank PLC London, 5.81%,               500,081
           7/1/99..................................              
                                                     ------------


                           SECURITY                     MARKET   
 SHARES                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
SHORT-TERM SECURITIES HELD AS                                    
COLLATERAL (CONTINUED)                                           

TIME DEPOSITS (CONTINUED)                     

                                                                [Download Table]
                                                                  
  500,082  Canadian Imperial Bank Commerce Cay,      $    500,082 
           5.88%, 7/1/99...........................               
                                                     ------------ 
                                                        1,000,163 
                                                     ------------ 
           TOTAL SHORT-TERM SECURITIES HELD AS                    
           COLLATERAL..............................    21,843,938 
                                                     ------------ 
TOTAL INVESTMENTS                                                 
(Cost $484,898,209) (a) -- 101.8%..................   921,473,297 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.8)%....   (16,051,636)
                                                     ------------ 
TOTAL NET ASSETS -- 100.0%.........................  $905,421,661 
                                                     ------------ 
                                                     ------------ 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $445,974,383 
Unrealized depreciation...........................    (8,399,295)
                                                    ------------ 
Net unrealized appreciation.......................  $436,575,088 
                                                    ------------ 
                                                    ------------ 

(b)  Security has been deposited as initial margin on open future contracts.    
(c)  A portion of this security was loaned as of June 30, 1999.                 
* Non-income producing security.                                                
ADR American Depositary Receipt                                                 

At June 30, 1999, the Fund's open future contracts were as follows:             

                                                                [Download Table]

  # OF                    OPENING                   CURRENT           MARKET    
CONTRACTS              CONTRACT TYPE                POSITION          VALUE     
---------   -----------------------------------  --------------   --------------
                                                                                
35....               Standard & Poor's           $   11,675,925   $   12,089,875
                       500, 9/16/99                                             

SEE NOTES TO FINANCIAL STATEMENTS.
67

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Kent Funds                                
            SHORT TERM BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                   DESCRIPTION                    VALUE    
-----------  ----------------------------------------  ------------
                                                                   
CORPORATE NOTES & BONDS (62.4%):                                   
             AEROSPACE (4.1%):                                     
  6,000,000  Boeing Capital Corp., 6.83%, 5/21/01....  $  6,030,000
                                                       ------------
             AUTOMOTIVE PARTS -- REPLACEMENT (3.4%):               
  5,000,000  Premier Auto Trust, 5.28%, 11/8/01......     5,021,150
                                                       ------------
             BANKING (9.7%):                                       
  5,000,000  ABN Amro Bank, 6.63%, 10/31/01..........     5,014,700
  5,000,000  Bankers Trust Corp., 5.85%, 5/11/00.....     4,987,500
  4,000,000  First Of America, 8.50%, 2/1/04.........     4,335,000
                                                       ------------
                                                         14,337,200
                                                       ------------
             BROKERS (7.5%):                                       
  5,000,000  Merrill Lynch & Co., Inc., 6.64%,            5,031,250
             9/19/02.................................              
  6,000,000  Morgan Stanley Group, Inc., 6.50%,           6,037,500
             3/30/01.................................              
                                                       ------------
                                                         11,068,750
                                                       ------------
             CABLE TELEVISION (3.5%):                              
  5,000,000  Tele-Commun Inc., 8.25%, 1/15/03........     5,256,250
                                                       ------------
             COMPUTER HARDWARE MANUFACTURING (3.4%):               
  5,000,000  IBM Corp., 5.76%, 7/10/00...............     4,987,500
                                                       ------------
             FINANCE (25.2%):                                      
  5,000,000  Aristar, Inc., 6.00%, 8/1/01............     4,962,500
  5,000,000  Associates Corp., 5.50%, 2/15/02........     4,900,000
  4,000,000  Beneficial Corp., 6.28%, 1/15/02........     3,985,000
  5,000,000  Ford Motor Credit Corp., 7.50%,              5,143,750
             1/15/03.................................              
  3,000,000  General Motors Acceptance Corp., 6.80%,      3,030,000
             5/22/01.................................              
  4,000,000  Household Netherlands BV, 6.20%,             3,910,000
             12/1/03.................................              
  5,000,000  MCN Investment Corp., 6.89%, 1/16/02....     5,000,000
  5,000,000  Norwest Financial, Inc., 7.88%,              5,175,000
             2/15/02.................................              
  1,500,000  Transamerica Financial Corp., 6.13%,         1,492,500
             11/1/01.................................              
                                                       ------------
                                                         37,598,750
                                                       ------------
             GROCERY (1.3%):                                       
  2,000,000  SuperValu, Inc., 7.25%, 7/15/99.........     2,000,000
                                                       ------------
             INDUSTRIAL GOODS & SERVICES (4.3%):                   
  4,375,000  Enron Corp., 6.45%, 11/15/01............     4,375,000
  2,000,000  Monsanto Co., 5.38%, 12/1/01............     1,957,500
                                                       ------------
                                                          6,332,500
                                                       ------------
             TOTAL CORPORATE NOTES & BONDS...........    92,632,100
                                                       ------------
SHORT-TERM SECURITIES HELD AS COLLATERAL (11.6%):                  
             COMMERICAL PAPER (3.7%):                              
    350,000  Bell South Telecommunications, 5.16%,          349,544
             7/9/99..................................              
    500,000  Cargill Inc., 5.65%, 7/1/99.............       500,000
    500,000  Coca-Cola Co., 5.13%, 7/30/99...........       497,848
    400,000  R.R. Donnelley & Sons Co., 5.26%,              398,847
             7/20/99.................................              


 PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                   DESCRIPTION                    VALUE    
-----------  ----------------------------------------  ------------
                                                                   
SHORT-TERM SECURITIES HELD AS COLLATERAL (CONTINUED)               

COMMERICAL PAPER (CONTINUED)                          

                                                                [Download Table]
                                                                   
    500,000  Duke Energy, 5.50%, 7/1/99..............  $    500,000
    500,000  Ford Motor Credit Corp., 5.18%,                498,845
             7/16/99.................................              
    500,000  General Electric Capital Corp., 5.10%,         496,979
             8/11/99.................................              
    500,000  General Motors Acceptance Corp., 5.09%,        497,124
             8/9/99..................................              
    250,000  GTE Funding Corp., 5.04%, 7/8/99........       249,431
    500,000  Mobil Corp., 5.50%, 7/1/99..............       500,000
    500,000  Nestle Capital Corp., 5.23%, 7/1/99.....       500,000
    500,000  UBS Finance, 5.50%, 7/1/99..............       500,000
                                                       ------------
                                                          5,488,618
                                                       ------------
             REPURCHASE AGREEMENTS (7.0%):                         
  1,750,238  Chase Securities Inc. 4.90%, 7/1/99          1,750,238
             (Collateralized by $1,501,138 various                 
             Corporate Notes & Bonds, 6.25%-7.25%,                 
             6/30/01-5/15/16, market value                         
             $1,500,086).............................              
  2,524,365  Goldman Sachs & Co. 5.20%, 7/1/99            2,524,365
             (Collateralized by $4,904,686 various                 
             Government Agency Securities, 4.50%-                  
             12.50%, 3/15/01-6/20/29, market value                 
             $3,102,840).............................              
  2,505,365  J P Morgan Securities, 4.90%, 7/1/99         2,505,365
             (Collateralized by $11,739,248 various                
             Government Agency Securities, 6.00%-                  
             9.00%, 1/15/05-1/15/29, market value                  
             $2,553,250).............................              
  2,000,827  Prudential Securities Inc., 4.90%,           2,000,827
             7/1/99 (Collateralized by $3,794,516                  
             various Government Agency Securities,                 
             5.50%-12.50%, 1/15/01-6/20/29, market                 
             value $2,040,000).......................              
  1,500,620  Prudential Securities Inc. 4.90%,7/1/99      1,500,620
             (Collateralized by $2,845,887 various                 
             Government Agency Securities, 5.50%-                  
             12.50%, 1/15/01-6/20/29, market value                 
             $1,530,000).............................              
                                                       ------------
                                                         10,281,415
                                                       ------------
             TIME DEPOSITS (0.9%):                                 
    700,113  Barclays Bank PLC London, 5.81%,               700,113
             7/1/99..................................              
    700,114  Canadian Imperial Bank Commerce Cay,           700,114
             5.88%, 7/1/99...........................              
                                                       ------------
                                                          1,400,227
                                                       ------------
             TOTAL SHORT-TERM SECURITIES HELD AS                   
             COLLATERAL..............................    17,170,260
                                                       ------------

U.S. GOVERNMENT AGENCY OBLIGATIONS (13.4%):                        
             FANNIE MAE (3.4%):                                    
  5,000,000  6.03%, 7/2/99...........................     5,000,050
                                                       ------------

CONTINUED 
68

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Kent Funds                                
            SHORT TERM BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                   DESCRIPTION                    VALUE     
-----------  ----------------------------------------  ------------ 
                                                                    
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)                      
             FREDDIE MAC (10.0%):                                   
  5,000,000  5.00%, 2/15/01 (c)......................  $  4,947,650 
  5,000,000  5.75%, 6/15/01 (c)......................     4,993,450 
  5,000,000  5.75%, 7/15/03..........................     4,941,500 
                                                       ------------ 
                                                         14,882,600 
                                                       ------------ 
             TOTAL U.S. GOVERNMENT AGENCY                           
             OBLIGATIONS.............................    19,882,650 
                                                       ------------ 

U.S. GOVERNMENT OBLIGATIONS (18.9%):                                
             U.S. TREASURY NOTES (18.9%):                           
 10,000,000  6.00%, 8/15/00 (c)......................    10,067,100 
  8,250,000  6.63%, 7/31/01..........................     8,410,298 
  3,900,000  6.25%, 1/31/02..........................     3,954,327 
  5,600,000  6.25%, 2/28/02 (c)......................     5,675,992 
                                                       ------------ 
             TOTAL U.S. GOVERNMENT OBLIGATIONS.......    28,107,717 
                                                       ------------ 

INVESTMENT COMPANIES (3.4%):                                        
    470,061  Dreyfus Cash Management Money Market           470,061 
             Fund....................................               
  4,538,302  Federated Prime Value Obligations Money      4,538,302 
             Market Fund.............................               
                                                       ------------ 
             TOTAL INVESTMENT COMPANIES..............     5,008,363 
                                                       ------------ 
             TOTAL INVESTMENTS (COST $164,343,789)                  
             (a) -- 109.7%...........................   162,801,090 
             LIABILITIES IN EXCESS OF OTHER ASSETS --               
             (9.7)%..................................   (14,362,307)
                                                       ------------ 
             TOTAL NET ASSETS -- 100.0%..............  $148,438,783 
                                                       ------------ 
                                                       ------------ 

---------------                                                                 

(a) Represents cost for federal income tax purposes and differs from value by   
net unrealized appreciation of securities as follows:                   

                                                                [Download Table]
                                                                
Unrealized appreciation...........................  $    98,757 
Unrealized depreciation...........................   (1,641,456)
                                                    ----------- 
Net unrealized depreciation.......................  $(1,542,699)
                                                    ----------- 
                                                    ----------- 

(b) 144a security which is restricted as to resale to institutional investors.  
This security has been deemed liquid.                                   

(c) A portion of this security was loaned as of June 30, 1999.                  

SEE NOTES TO FINANCIAL STATEMENTS.
69

N-30D 71st “Page” of 126 TOC 1st Previous Next ↓Bottom Just 71st
Kent Funds                                
              INTERMEDIATE BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                   DESCRIPTION                     VALUE    
-----------  ----------------------------------------  -------------
                                                                    
CORPORATE NOTES & BONDS (33.4%):                                    
             AUTOMOTIVE (0.9%):                                     
$ 8,000,000  Ford Motor Credit Co., 5.80%, 1/12/09...  $   7,310,000
                                                       -------------
             BANKING (9.4%):                                        
 10,000,000  Bank America, 5.88%, 2/15/09 (c)........      9,187,500
  6,000,000  Bank of Montreal-Chicago, 7.80%, 4/1/07       6,307,500
             ........................................               
  5,000,000  Bank One Corp., 6.00%, 2/17/09..........      4,618,750
  5,000,000  Bankers Trust Corp., 5.85%, 5/11/00.....      4,987,500
 10,000,000  Chase Manhattan Corp., 6.75%, 9/15/06...      9,737,500
  8,000,000  Chase Manhattan Corp., 7.13%, 6/15/09         8,020,000
             (c).....................................               
  5,000,000  J.P. Morgan & Co., 7.63%, 9/15/04.......      5,150,000
  5,270,000  Keycorp, 6.75%, 3/15/06.................      5,177,775
  5,000,000  MBNA American Bank NA, 7.25%, 9/15/02...      5,056,250
  5,000,000  MBNA Master Credit Card Trust, 5.10%*,        5,004,500
             8/15/05.................................               
  5,000,000  NCNB Corp., 9.38%, 9/15/09..............      5,818,750
 10,000,000  Wachovia Corp., 6.38%, 2/1/09...........      9,637,500
                                                       -------------
                                                          78,703,525
                                                       -------------
             BROKERS (3.4%):                                        
  5,500,000  Bear Stearns Co., 6.75%, 4/15/03........      5,479,375
  8,500,000  Donaldson Lufkin Jenrett, 5.88%,              8,340,625
             4/1/02..................................               
  3,000,000  Goldman Sachs Group, 6.65%, 5/15/09.....      2,898,750
  7,000,000  Merrill Lynch & Co., 6.00%, 2/17/09.....      6,457,500
  5,000,000  Salomon Smith Barney, 7.13%, 10/1/06....      4,968,750
                                                       -------------
                                                          28,145,000
                                                       -------------
             FINANCE (9.8%):                                        
  5,000,000  Associates Corp., N.A., 6.52%,                5,012,500
             10/11/02................................               
  5,000,000  Citigroup Capital II, 7.75%, 12/1/36....      4,818,750
 10,000,000  Ford Capital Guaranteed Notes, 9.88%,        10,900,000
             5/15/02.................................               
  8,400,000  Ford Motor Credit Corp., 9.03%,               9,219,000
             12/30/09, Callable 12/30/04 @ 100.......               
  5,000,000  General Electric Capital Corp., 6.66%*,       5,031,250
             5/1/00, Putable 5/1/00 @100.............               
 10,000,000  General Motors Acceptance Corp., 5.35%,       9,775,000
             12/7/01.................................               
  5,000,000  General Motors Acceptance Corp., 5.91%,       4,931,250
             3/11/02.................................               
  5,000,000  General Motors Acceptance Corp., 6.15%,       4,762,500
             4/5/07 (c)..............................               
  5,000,000  Household Finance Corp., 8.00%, 8/1/04..      5,268,750
  5,000,000  National City Bank, 6.25%, 3/15/11......      4,700,000
  5,000,000  Norwest Corp., 6.50%, 6/1/05............      4,906,250
  6,000,000  Norwest Finance Inc., 5.38%, 9/30/03....      5,745,000
  8,000,000  PNC Funding Corp., 6.13%, 2/15/09.......      7,510,000
                                                       -------------
                                                          82,580,250
                                                       -------------
             INDUSTRIAL GOODS & SERVICES (3.2%):                    
  5,500,000  Boston Scientific, 6.63%, 3/15/05.......      5,252,500
  7,500,000  Comdisco Inc., 6.13%*, 8/1/01, Callable       7,462,500
             8/1/01 @ 100............................               
  5,000,000  General Motors, 6.25%, 5/1/05...........      4,856,250


 PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                   DESCRIPTION                     VALUE    
-----------  ----------------------------------------  -------------
                                                                    
CORPORATE NOTES & BONDS (CONTINUED)                                 

INDUSTRIAL GOODS & SERVICES (CONTINUED)               

                                                                [Download Table]
                                                                    
$10,000,000  Tyco International Group SA, 5.88%,       $   9,487,500
             11/1/04 (b).............................               
                                                       -------------
                                                          27,058,750
                                                       -------------
             INSURANCE (1.8%):                                      
  5,000,000  American Annuity Group, 6.88%, 6/1/08...      4,650,000
  5,000,000  St. Paul Companies, Inc., 7.19%,              5,056,250
             8/2/07..................................               
  5,100,000  Travelers Group, Inc., 6.88%,                 5,138,250
             12/15/03................................               
                                                       -------------
                                                          14,844,500
                                                       -------------
             MACHINERY & EQUIPMENT (0.7%):                          
  6,000,000  Case Corp., 7.25%, 1/15/16..............      5,737,500
                                                       -------------
             TECHNOLOGY (1.2%):                                     
 10,000,000  MCI Worldcom Inc., 7.55%, 4/1/04........     10,275,000
                                                       -------------
             TELECOMMUNICATIONS (1.6%):                             
  6,000,000  Bell Canada, 7.75%, 4/1/06..............      6,292,500
  8,000,000  Sprint Cap. Corp., 6.88%, 11/15/28......      7,310,000
                                                       -------------
                                                          13,602,500
                                                       -------------
             TRANSPORTATION -- RAILROAD (0.8%):                     
  7,000,000  Union Pacific Co., 6.34%, 11/25/03......      6,868,750
                                                       -------------
             UTILITIES (0.6%):                                      
  5,000,000  Western Resources, Inc., 6.88%,               4,956,250
             8/1/04..................................               
                                                       -------------
             TOTAL CORPORATE NOTES & BONDS...........    280,082,025
                                                       -------------

SHORT-TERM SECURITIES HELD AS COLLATERAL (14.1%):                   
             COMMERCIAL PAPER (5.5%):                               
  3,000,000  Ameritech Capital Funding Corp., 5.12%,       2,990,069
             7/23/99.................................               
  1,800,000  Bell South Telecommunications, 5.16%,         1,797,653
             7/9/99..................................               
  1,000,000  Bell South Telecommunications, 5.18%,           994,973
             8/4/99..................................               
  3,000,000  Cargill Inc., 5.65%, 7/1/99.............      3,000,000
  3,000,000  Coca-Cola Co., 5.13%, 7/30/99...........      2,987,090
  1,500,000  Daimler, 5.14%, 8/11/99.................      1,490,936
  3,000,000  R.R. Donnelley & Sons Co.,                    2,991,352
             5.26%, 7/20/99..........................               
  3,000,000  Duke Energy, 5.50%, 7/1/99..............      3,000,000
  3,000,000  Ford Motor Credit Corp., 5.18%,               2,993,069
             7/16/99.................................               
  1,500,000  Gannett Co., 5.09%, 7/19/99.............      1,495,890
  4,000,000  General Electric Capital Corp., 5.10%,        3,975,829
             8/11/99.................................               
  4,000,000  General Motors Acceptance Corp., 5.09%,       3,976,992
             8/9/99..................................               
  2,500,000  GTE Funding Corp., 5.04%, 7/8/99........      2,494,308
  1,250,000  GTE Funding Corp., 5.05%, 7/16/99.......      1,247,112
  1,500,000  H.J.Heinz Co., 5.14%, 8/19/99...........      1,489,188
  3,000,000  Mobil Corp., 5.50%, 7/1/99..............      3,000,000
  3,000,000  Nestle Capital Corp., 5.23%, 7/1/99.....      3,000,000
  3,000,000  UBS Finance, 5.50%, 7/1/99..............      3,000,000
                                                       -------------
                                                          45,924,461
                                                       -------------

CONTINUED 
70

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Kent Funds                                
              INTERMEDIATE BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                   DESCRIPTION                     VALUE    
-----------  ----------------------------------------  -------------
                                                                    
SHORT-TERM SECURITIES HELD AS COLLATERAL (CONTINUED)                
             REPURCHASE AGREEMENTS (7.9%):                          
$17,083,325  Chase Securities Inc. 4.90%, 7/1/99       $  17,083,325
             (Collateralized by $17,093,952 various                 
             Corporate Notes & Bonds, 6.25%-7.25%,                  
             6/30/01-5/15/16, market value                          
             $17,081,975)............................               
 25,003,611  Goldman Sachs & Co. 5.20%, 7/1/99            25,003,611
             (Collateralized by $40,308,075 various                 
             Government Agency Securities, 4.50%-                   
             12.50%, 3/15/01-6/20/29, market value                  
             $25,500,001)............................               
  4,225,048  J P Morgan Securities, 4.90%, 7/1/99          4,225,048
             (Collateralized by $19,797,068 various                 
             Government Agency Securities, 6.00%-                   
             9.00%, 1/15/05-1/15/29, market value                   
             $4,305,801).............................               
  1,686,612  J P Morgan Securities, 4.90%, 7/1/99          1,686,612
             (Collateralized by $7,902,862 various                  
             Government Agency Securities, 6.00%-                   
             9.00%,1/15/05-1/15/29, market value                    
             $1,718,848).............................               
  1,503,219  J P Morgan Securities, 4.90%, 7/1/99          1,503,219
             (Collateralized by $7,043,549 various                  
             Government Agency Securities, 6.00%-                   
             9.00%, 1/15/05-1/15/29, market value                   
             $1,531,950).............................               
  3,001,240  Prudential Securities Inc. 4.90%, 7/1/99      3,001,240
             (Collateralized by $5,691,774 various                  
             Government Agency Securities, 5.50%-                   
             12.50%, 1/15/01-6/20/29, market value                  
             $3,060,000).............................               
  3,001,240  Prudential Securities Inc., 4.90%,            3,001,240
             7/1/99 (Collateralized by $5,691,774                   
             various Government Agency Securities,                  
             5.50%-12.50%, 1/15/01-6/20/29, market                  
             value $3,060,000).......................               
  7,002,893  Prudential Securities Inc., 4.90%,            7,002,893
             7/1/99 (Collateralized by $13,280,806                  
             various Government Agency Securities,                  
             5.50%-12.50%, 1/15/01-6/20/29, market                  
             value $7,140,000).......................               
  4,001,653  Prudential Securities Inc., 4.90%,            4,001,653
             7/1/99 (Collateralized by $7,589,032                   
             various Government Agency Securities,                  
             5.50%-12.50%, 1/15/01-6/20/29, market                  
             value $4,080,000).......................               
                                                       -------------
                                                          66,508,841
                                                       -------------
             TIME DEPOSITS (0.7%):                                  
  3,000,484  Barclays Bank PLC London, 5.81%,              3,000,484
             7/1/99..................................               
  3,000,490  Canadian Imperial Bank Commerce Cay,          3,000,490
             5.88%, 7/1/99...........................               
                                                       -------------
                                                           6,000,974
                                                       -------------
             TOTAL SHORT-TERM SECURITIES HELD AS                    
             COLLATERAL..............................    118,434,276
                                                       -------------


 PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                   DESCRIPTION                     VALUE    
-----------  ----------------------------------------  -------------
                                                                    

U.S. GOVERNMENT AGENCY OBLIGATIONS (12.9%):                         
             FANNIE MAE (6.5%):                                     
$10,000,000  5.13%, 2/13/04..........................  $   9,612,000
 25,000,000  5.63%, 5/14/04 (c)......................     24,504,000
  9,100,000  6.00%, 11/15/22.........................      8,851,024
 12,000,000  6.25%, 11/18/23.........................     11,619,000
                                                       -------------
                                                          54,586,024
                                                       -------------
             FEDERAL FARM CREDIT BANK (1.2%):                       
 10,000,000  6.30%, 9/23/04..........................     10,060,500
                                                       -------------
             FEDERAL HOME LOAN BANK (0.6%):                         
  5,000,000  6.49%, 1/8/04...........................      5,070,000
                                                       -------------
             FREDDIE MAC (4.6%):                                    
 24,000,000  5.75%, 7/15/03..........................     23,719,200
 10,410,000  8.12%, 1/31/05..........................     11,271,636
  3,000,000  7.22%, 6/14/06..........................      3,136,170
                                                       -------------
                                                          38,127,006
                                                       -------------
             TOTAL U.S. GOVERNMENT AGENCY                           
             OBLIGATIONS.............................    107,843,530
                                                       -------------

U.S. GOVERNMENT OBLIGATIONS (48.9%):                                
             U.S. TREASURY BONDS (10.2%):                           
 59,200,000  9.13%, 5/15/09..........................     66,685,248
 12,000,000  10.38%, 11/15/09........................     14,322,960
  3,200,000  12.00%, 8/15/13.........................      4,478,848
                                                       -------------
                                                          85,487,056
                                                       -------------
             U.S. TREASURY NOTES (31.8%):                           
 56,000,000  6.50%, 5/31/01..........................     56,981,120
 13,300,000  6.25%, 10/31/01 (c).....................     13,473,565
 77,000,000  7.50%, 11/15/01 (c).....................     80,113,880
 47,000,000  6.38%, 8/15/02..........................     47,838,480
  2,000,000  6.25%, 2/15/03..........................      2,030,160
 10,350,000  7.50%, 2/15/05 (c)......................     11,115,072
  2,100,000  6.88%, 5/15/06..........................      2,210,355
 31,800,000  7.00%, 7/15/06..........................     33,676,200
  2,300,000  6.50%, 10/15/06 (c).....................      2,373,577
 16,000,000  6.63%, 5/15/07 (c)......................     16,659,360
                                                       -------------
                                                         266,471,769
                                                       -------------
             U.S. TREASURY STRIPS (6.9%):                           
 38,000,000  11/15/04 (c)............................     27,559,120
 53,000,000  11/15/08................................     30,205,760
                                                       -------------
                                                          57,764,880
                                                       -------------
             TOTAL U.S. GOVERNMENT OBLIGATIONS.......    409,723,705
                                                       -------------

YANKEE CERTIFICATES OF DEPOSIT (1.2%):                              
 10,000,000  Potash Corp. Saskatchewan, 7.13%,             9,887,500
             6/15/07.................................               
                                                       -------------
             TOTAL YANKEE CERTIFICATES OF DEPOSIT....      9,887,500
                                                       -------------

INVESTMENT COMPANIES (2.3%):                                        
  3,259,464  Dreyfus Cash Management Money Market          3,259,464
             Fund....................................               

CONTINUED 
71

N-30D 73rd “Page” of 126 TOC 1st Previous Next ↓Bottom Just 73rd
Kent Funds                                
              INTERMEDIATE BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                     MARKET     
  AMOUNT                   DESCRIPTION                     VALUE     
-----------  ----------------------------------------  ------------- 
                                                                     
INVESTMENT COMPANIES (CONTINUED)                                     
$15,689,224  Federated Prime Value Obligations Money   $  15,689,223 
             Market Fund.............................                
                                                       ------------- 
             TOTAL INVESTMENT COMPANIES..............     18,948,687 
                                                       ------------- 
TOTAL INVESTMENTS -- 112.8%..........................    944,919,723 
                                                       ------------- 
(Cost $963,024,495) (a)                                              
LIABILITIES IN EXCESS OF OTHER ASSETS -- (12.8)%.....   (107,451,249)
                                                       ------------- 
TOTAL NET ASSETS -- 100.0%...........................  $ 837,468,474 
                                                       ------------- 
                                                       ------------- 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $  3,684,091 
Unrealized depreciation...........................   (21,788,863)
                                                    ------------ 
Net unrealized appreciation.......................  $(18,104,772)
                                                    ------------ 
                                                    ------------ 

(b)  144a security which is restricted as to resale to institutional investors. 
This security has been deemed liquid.                                 
(c)  A portion of this security was loaned as of June 30, 1999.                 
*  Non-income producing                                                     

PLC - Public Limited Company (British)                                          

SA - Sociedad Anonima (Spanish Corporation)                                     

SEE NOTES TO FINANCIAL STATEMENTS.
72

N-30D 74th “Page” of 126 TOC 1st Previous Next ↓Bottom Just 74th
Kent Funds                                
   INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
CORPORATE NOTES & BONDS (46.2%):                                  
            BANKING (12.1%):                                      
 2,700,000  Bank of Montreal-Chicago, 7.80%,          $  2,838,375
            4/1/07..................................              
 2,000,000  Bank of New York, 8.50%, 12/15/04.......     2,150,000
 2,000,000  BankAmerica Corp., 7.20%, 4/15/06.......     2,005,000
 2,000,000  Chase Manhattan Corp., 7.13%, 3/1/05....     2,027,500
 4,000,000  First Union Corp., 9.45%, 8/15/01.......     4,235,000
 2,000,000  Fleet/Norstar Group, 8.63%, 1/15/07.....     2,167,500
 2,000,000  Midland Bank PLC, 7.63%, 6/15/06........     2,045,000
 3,000,000  National City Bank of Cleveland, 7.25%,      3,093,750
            7/15/10.................................              
 5,000,000  NCNB Corp., 10.20%, 7/15/15.............     6,275,001
 5,000,000  PNC Bank N.A., 7.88%, 4/15/05...........     5,175,000
 2,000,000  Republic New York Corp., 7.00%,              1,922,500
            3/22/11.................................              
 2,000,000  Swiss Bank Corp. -- New York, 7.38%,         2,010,000
            7/15/15.................................              
                                                      ------------
                                                        35,944,626
                                                      ------------
            BEVERAGES & TOBACCO (1.6%):                           
 4,390,000  Seagram Co. Ltd., 8.35%, 1/15/22........     4,609,500
                                                      ------------
            BROKERS (0.7%):                                       
 2,000,000  Salomon, Inc., 6.75%, 2/15/03...........     2,010,000
                                                      ------------
            FINANCE (11.5%):                                      
 5,000,000  Associates Corp. NA, 7.95%, 2/15/10.....     5,306,250
 3,500,000  British Gas Finance, 6.63%, 6/1/18......     3,220,000
 2,000,000  Discover Credit, 9.26%, 3/20/12.........     2,347,500
 5,000,000  Ford Motor Credit Corp., 9.03%,              5,487,500
            12/30/09, Callable 12/30/04 @ 100.......              
 5,000,000  General Motors Acceptance Corp., 6.85%,      5,056,250
            6/17/04.................................              
 3,500,000  Great Western Financial Trust II, 8.21%,     3,504,375
            2/1/27, Callable 2/1/07 @ 104.10........              
 5,000,000  Lehman Brothers Holdings, Inc., 8.75%,       5,306,250
            3/15/05.................................              
 4,000,000  St. Paul Cos, Inc., 7.25%, 8/9/07.......     4,060,000
                                                      ------------
                                                        34,288,125
                                                      ------------
            GAS TRANSMISSION (0.8%):                              
 2,500,000  Enserch Corp., 7.13%, 6/15/05...........     2,512,500
                                                      ------------
            INDUSTRIAL GOODS & SERVICES (6.8%):                   
 5,000,000  Cyprus Amax, 7.38%, 5/15/07.............     4,675,000
 3,000,000  Engelhard Corp., 7.38%, 8/1/06..........     3,026,250
 5,000,000  Protection One Alarm, 7.38%, 8/15/05         4,793,750
            (b).....................................              
 2,950,000  Raytheon Co., 6.75%, 8/15/07............     2,905,750
 5,000,000  Union Carbide Corp., 6.70%, 4/1/09......     4,793,750
                                                      ------------
                                                        20,194,500
                                                      ------------
            INSURANCE (0.7%):                                     
 2,000,000  Travelers Capital III, 7.63%, 12/1/36...     1,932,500
                                                      ------------
            MACHINERY & EQUIPMENT (0.6%):                         
 2,000,000  Case Corp., 7.25%, 1/15/16..............     1,912,500
                                                      ------------
            OIL & GAS (2.0%):                                     
 5,000,000  Phillips Petroleum, 9.38%, 2/15/11......     5,912,500
                                                      ------------


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
CORPORATE NOTES & BONDS (CONTINUED)                               
            RETAIL (1.6%):                                        
 4,658,403  Fred Meyer, Inc., Lease Trust, 8.50%,     $  4,827,270
            7/15/17.................................              
                                                      ------------
            TELECOMMUNICATIONS (7.1%):                            
 3,500,000  GTE Florida, Inc., 6.86%, 2/1/28........     3,311,875
 4,000,000  Sprint Cap. Corp., 6.88%, 11/15/28......     3,655,000
 5,000,000  TCI Communications, Inc., 7.13%,             4,856,250
            2/15/28.................................              
 5,000,000  US West Cap Funding, Inc., 6.88%,            4,500,000
            7/15/28.................................              
 5,000,000  Worldcom Inc., 6.95%, 8/15/28...........     4,725,000
                                                      ------------
                                                        21,048,125
                                                      ------------
            UTILITIES (0.7%):                                     
 2,000,000  Pacific Gas & Electric, 6.25%, 3/1/04...     1,980,000
                                                      ------------
            TOTAL CORPORATE NOTES & BONDS...........   137,172,146
                                                      ------------

FOREIGN GOVERNMENT AGENCIES (0.3%):                               
 1,000,000  Hydro-Quebec, 9.41%, 3/23/00............     1,021,250
                                                      ------------
            TOTAL FOREIGN GOVERNMENT AGENCIES.......     1,021,250
                                                      ------------

MUNICIPAL BOND -- TAXABLE (0.7%):                                 
            CALIFORNIA (0.7%):                                    
 2,000,000  San Bernardino County, Financing             2,010,000
            Authority Pension Obligation Revenue,                 
            6.99%, 8/1/10 (Insured by MBIA).........              
                                                      ------------
            TOTAL MUNICIPAL BOND -- TAXABLE.........     2,010,000
                                                      ------------

SHORT-TERM SECURITIES HELD AS COLLATERAL (21.0%):                 
            COMMERICAL PAPER (7.7%):                              
 1,000,000  Ameritech Capital Funding Corp., 5.12%,        996,690
            7/23/99.................................              
   600,000  Bell South Telecommunications, 5.16%,          599,218
            7/9/99..................................              
 1,000,000  Bell South Telecommunications, 5.18%,          994,973
            8/4/99..................................              
 1,600,000  Cargill Inc., 5.65%, 7/1/99.............     1,600,000
 1,600,000  Coca-Cola Co., 5.13%, 7/30/99...........     1,593,115
 1,000,000  Daimler, 5.14%, 8/11/99.................       993,957
 1,200,000  R.R. Donnelley & Sons Co., 5.26%,            1,196,541
            7/20/99.................................              
 1,600,000  Duke Energy, 5.50%, 7/1/99..............     1,600,000
 1,600,000  Ford Motor Credit Corp., 5.18%,              1,596,303
            7/16/99.................................              
 1,000,000  Gannett Co., 5.09%, 7/19/99.............       997,260
 1,500,000  General Electric Capital Corp., 5.10%,       1,490,936
            8/11/99.................................              
 1,500,000  General Motors Acceptance Corp., 5.09%,      1,491,372
            8/9/99..................................              
 2,000,000  GTE Funding Corp., 5.04%, 7/8/99........     1,995,446
 1,000,000  H.J.Heinz Co., 5.14%, 8/19/99...........       992,792
 1,600,000  Mobil Corp., 5.50%, 7/1/99..............     1,600,000
 1,600,000  Nestle Capital Corp., 5.23%, 7/1/99.....     1,600,000
 1,600,000  UBS Finance, 5.50%, 7/1/99..............     1,600,000
                                                      ------------
                                                        22,938,603
                                                      ------------

CONTINUED 
73

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Kent Funds                                
   INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                  DESCRIPTION                    VALUE     
----------  ----------------------------------------  ------------ 
                                                                   
SHORT-TERM SECURITIES HELD AS COLLATERAL (CONTINUED)               
            REPURCHASE AGREEMENTS (12.1%):                         
10,001,361  Chase Securities Inc. 4.90%, 7/1/99       $ 10,001,361 
            (Collateralized by $10,007,583 various                 
            Corporate Notes & Bonds, 6.25%-7.25%,                  
            6/30/01-5/15/16, market value                          
            $10,000,571)............................               
11,839,710  Goldman Sachs & Co. 5.20%, 7/1/99           11,839,710 
            (Collateralized by $19,086,679 various                 
            Government Agency Securities, 4.50%-                   
            12.50%, 3/15/01-6/20/29, market value                  
            $12,074,760)............................               
 7,015,022  J P Morgan Securities, 4.90%, 7/1/99         7,015,022 
            (Collateralized by $32,869,895 various                 
            Government Agency Securities, 6.00%-                   
            9.00%, 1/15/05-1/15/29, market value                   
            $7,149,101).............................               
   785,683  J P Morgan Securities, 4.90%, 7/1/99           785,683 
            (Collateralized by $3,681,428 various                  
            Government Agency Securities, 6.00%-                   
            9.00%, 1/15/05-1/15/29, market value                   
            $800,699)...............................               
 2,505,365  J P Morgan Securities, 4.90%, 7/1/99         2,505,365 
            (Collateralized by $11,739,248 various                 
            Government Agency Securities, 6.00%-                   
            9.00%, 1/15/05-1/15/29, market value                   
            $2,553,250).............................               
 1,519,628  Prudential Securities Inc., 4.90%,           1,519,628 
            7/1/99 (Collateralized by $2,881,935                   
            various Government Agency Securities,                  
            5.50%-12.50%, 1/15/01-6/20/29, market                  
            value $1,549,380).......................               
 2,231,922  Prudential Securities Inc., 4.90%,           2,231,922 
            7/1/99 (Collateralized by $4,232,783                   
            various Government Agency Securities,                  
            5.50%-12.50%, 1/15/01-6/20/29, market                  
            value $2,275,620).......................               
                                                      ------------ 
                                                        35,898,691 
                                                      ------------ 
            TIME DEPOSITS (1.2%):                                  
 1,800,291  Barclays Bank PLC London, 5.81%*, 7/1/99     1,800,291 
            ........................................               
 1,800,294  Canadian Imperial Bank Commerce Cay,         1,800,294 
            5.88%, 7/1/99...........................               
                                                      ------------ 
                                                         3,600,585 
                                                      ------------ 
            TOTAL SHORT-TERM SECURITIES HELD AS                    
            COLLATERAL..............................    62,437,879 
                                                      ------------ 
U.S. GOVERNMENT AGENCY OBLIGATIONS (13.0%):                        
            FANNIE MAE (8.9%):                                     
10,000,000  5.63%, 5/14/04 (c)......................     9,801,600 
10,000,000  7.40%, 7/1/04...........................    10,548,600 
 2,985,581  6.05%, 12/1/08..........................     2,912,106 
 3,500,000  6.25%, 11/18/23.........................     3,388,875 
                                                      ------------ 
                                                        26,651,181 
                                                      ------------ 


PRINCIPAL                   SECURITY                     MARKET    
  AMOUNT                  DESCRIPTION                    VALUE     
----------  ----------------------------------------  ------------ 
                                                                   
U.S. GOVERNMENT AGENCY OBLIGATIONS (CONTINUED)                     
            FREDDIE MAC (4.1%):                                    
 2,500,000  7.22%, 6/14/06..........................  $  2,613,475 
10,000,000  5.75%, 3/15/09..........................     9,512,500 
                                                      ------------ 
                                                        12,125,975 
                                                      ------------ 
            TOTAL U.S. GOVERNMENT AGENCY                           
            OBLIGATIONS.............................    38,777,156 
                                                      ------------ 

U.S. GOVERNMENT OBLIGATIONS (37.5%):                               
            U.S. TREASURY BONDS (14.2%):                           
 8,750,000  9.13%, 5/15/09..........................     9,856,350 
15,500,000  11.75%, 11/15/14 (c)....................    22,086,415 
 2,200,000  7.50%, 11/15/16 (c).....................     2,477,266 
 6,000,000  8.75%, 5/15/20..........................     7,697,760 
                                                      ------------ 
                                                        42,117,791 
                                                      ------------ 
            U.S. TREASURY NOTES (16.3%):                           
 6,000,000  8.00%, 5/15/01 (c)......................     6,260,640 
12,000,000  7.50%, 5/15/02 (c)......................    12,566,880 
11,000,000  7.00%, 7/15/06 (c)......................    11,649,000 
10,000,000  5.50%, 5/15/09 (c)......................     9,784,500 
 6,300,000  12.75%, 11/15/10 (c)....................     8,479,674 
                                                      ------------ 
                                                        48,740,694 
                                                      ------------ 
            U.S. TREASURY STRIPS (7.0%):                           
40,000,000  5/15/10.................................    20,703,600 
                                                      ------------ 
            TOTAL U.S. GOVERNMENT OBLIGATIONS.......   111,562,085 
                                                      ------------ 

INVESTMENT COMPANIES (0.7%):                                       
     8,069  Dreyfus Cash Management Money Market             8,069 
            Fund....................................               
 1,967,329  Federated Prime Value Obligations Money      1,967,329 
            Market Fund.............................               
                                                      ------------ 
TOTAL INVESTMENT COMPANIES..........................     1,975,398 
                                                      ------------ 
TOTAL INVESTMENTS                                                  
(Cost $362,138,755) (a) -- 119.4%...................   354,955,913 
                                                      ------------ 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (19.4)%....   (57,709,157)
                                                      ------------ 
TOTAL NET ASSETS -- 100.0%..........................  $297,246,756 
                                                      ------------ 
                                                      ------------ 

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $  1,379,215 
Unrealized depreciation...........................    (8,562,057)
                                                    ------------ 
Net unrealized depreciation.......................  $ (7,182,842)
                                                    ------------ 
                                                    ------------ 

(b)  144a security which is restricted as to resale to institutional investors. 
This security has been deemed liquid.                                 
(c)  A portion of this security was loaned as of June 30, 1999.                 
MBIA - Municipal Bond Insurance Association                                     
PLC - Public Limited Company                                                    

SEE NOTES TO FINANCIAL STATEMENTS.
74

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Kent Funds                                
                  INTERMEDIATE TAX-FREE FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (97.5%):                                          
            ALASKA (2.2%):                                        
$  710,000  Alaska Municipal Bond Bank Authority,     $    712,222
            Series A, GO, 4.75%, 10/1/99............              
 1,000,000  Anchorage Electric Utility, Revenue          1,042,500
            Bond, Senior Lien, 5.50%, 12/1/03,                    
            Callable 6/1/03 @ 102 (Insured by                     
            MBIA)...................................              
 5,000,000  North Slope Boro, Series B, GO, 7.50%,       5,306,250
            6/30/01 (Insured by FSA)................              
                                                      ------------
                                                         7,060,972
                                                      ------------
            ARIZONA (2.6%):                                       
 1,000,000  Arizona State University Revenue, 7.10%,     1,075,000
            7/1/16, Prerefunded 7/1/01 @102.........              
   500,000  Phoenix, GO, 6.00%, 7/1/99..............       500,000
 1,500,000  Pima County Unified School District No.      1,546,080
            1 Tucson, Series B, GO, ETM, 6.80%,                   
            7/1/00..................................              
 5,000,000  Salt River Project Agricultural              5,281,250
            Improvement & Power District Electric                 
            System, Series A, 5.63%, 1/1/06.........              
                                                      ------------
                                                         8,402,330
                                                      ------------
            ARKANSAS (0.3%):                                      
 1,000,000  Arkansas State Economic Development,         1,016,250
            5.00%, 2/1/03 (Insured by AMBAC)........              
                                                      ------------
            CALIFORNIA (5.9%):                                    
 3,400,000  California State, GO, 6.60%, 2/1/10.....     3,863,250
 3,000,000  Orange County, Series A, 6.00%, 6/1/10       3,255,000
            (Insured by MBIA).......................              
 2,000,000  Riverside County Transportation              2,125,000
            Commission, Sales Tax Revenue, Series A,              
            5.60%, 6/1/05 (Insured by AMBAC)........              
 2,000,000  Turlock Irrigation District Revenue,         2,167,500
            Series A, 6.00%, 1/1/06 (Insured by                   
            MBIA) ..................................              
 5,850,000  University of California Revenue,            6,888,374
            Multiple Purpose Projects, Series B,                  
            9.00%, 9/1/03 (Insured by MBIA).........              
                                                      ------------
                                                        18,299,124
                                                      ------------
            COLORADO (2.6%):                                      
 4,000,000  Arapahoe County, School District No.         4,130,000
            005, Cherry Creek, Series A, GO, 5.25%,               
            12/15/02................................              
 1,400,000  Boulder Valley School District,              1,471,750
            5.50%, 12/1/07 (Insured by FGIC)........              
   500,000  Colorado Housing Finance Authority,            496,250
            4.50%, 11/1/05..........................              
 1,000,000  Colorado Springs Utility Revenue,            1,066,250
            Series A, 6.50%, 11/15/03, Callable                   
            11/15/01 @ 102..........................              
 1,000,000  E-470 Public Highway Authority Revenue,      1,076,250
            Series C, 6.00%, 9/1/07 (Insured by                   
            MBIA)...................................              
                                                      ------------
                                                         8,240,500
                                                      ------------


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            CONNECTICUT (1.6%):                                   
$1,000,000  Connecticut State, GO, Series C, 5.38%,   $  1,035,000
            8/15/02.................................              
 4,000,000  Connecticut State, Series A, 6.00%,          4,190,000
            5/15/02.................................              
                                                      ------------
                                                         5,225,000
                                                      ------------
            FLORIDA (2.3%):                                       
 1,000,000  Broward County School District, GO,          1,026,250
            5.20%, 2/15/03..........................              
 1,000,000  Florida State Division Finance               1,060,000
            Department Of General Service,                        
            6.10%, 7/1/04...........................              
 1,000,000  Hillsborough County Florida Development      1,078,750
            Authority Revenue,                                    
            6.38%, 12/1/12 (Insured by MBIA)........              
 2,000,000  Lakeland Electric & Water Revenue,           2,142,500
            5.90%, 10/1/07..........................              
 1,000,000  Tampa Guaranteed Entitlement Revenue,        1,033,750
            6.60%, 10/1/00 (Insured by AMBAC).......              
 1,000,000  Tampa Utilities, Tax & Special Revenue,      1,030,000
            6.30%, 10/1/00 (Insursed by AMBAC)......              
                                                      ------------
                                                         7,371,250
                                                      ------------
            GEORGIA (6.9%):                                       
 2,670,000  Atlanta Airport Facilities Revenue           2,746,763
            (AMT), Series B, 5.50%, 1/1/03 (Insured               
            by AMBAC)...............................              
 7,000,000  Atlanta Georgia Water & Wastewater           7,209,999
            Revenue, 5.50%, 11/1/15 (Insured by                   
            FGIC)...................................              
 5,000,000  Atlanta Georgia Water & Wastewater           5,131,250
            Revenue, 5.50%, 11/1/18 (Insured by                   
            FGIC)...................................              
 2,000,000  Georgia State UTGO, Series B, 6.25%,         2,192,500
            3/1/07..................................              
 4,000,000  Georgia State, Series B, GO, 5.95%,          4,330,000
            3/1/08..................................              
                                                      ------------
                                                        21,610,512
                                                      ------------
            HAWAII (1.0%):                                        
 1,000,000  Honolulu City & County, Series D, GO,        1,037,500
            ETM, 6.50%, 12/1/00.....................              
   855,000  Honolulu Hawaii City & County, 5.60%,          893,475
            1/1/05..................................              
   170,000  Honolulu Hawaii City & County ETM,             177,650
            5.60%, 1/1/05...........................              
 1,150,000  Maui County, Series A, GO, 6.80%,            1,208,938
            12/1/03, Prerefunded 12/1/00 @ 101                    
            (Insured by AMBAC)......................              
                                                      ------------
                                                         3,317,563
                                                      ------------
            IDAHO (0.6%):                                         
 1,915,000  Ada & Canyon Counties, Joint School          1,991,600
            District No. 2, Meridan, GO, 5.50%,                   
            7/30/14.................................              
                                                      ------------
            ILLINOIS (7.4%):                                      
 2,000,000  Chicago Ill UTGO; Emergency Telephone        1,992,500
            System, 5.25%, 1/1/15 (Insured by                     
            FGIC)...................................              

CONTINUED 
75

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Kent Funds                                
                  INTERMEDIATE TAX-FREE FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       

ILLINOIS (CONTINUED)                                    

                                                                [Download Table]
                                                                  
$  805,000  Chicago Illinois; Emergency Telephone     $    799,969
            System, 5.25%, 1/1/16 (Insured by                     
            FGIC)...................................              
 1,000,000  Chicago Metropolitan Water Reclamation       1,063,750
            District, Working Cash Fund, 5.90%,                   
            12/1/04.................................              
 3,000,000  Chicago Metropolitan, Water Reclamation      3,105,000
            District, Capital Improvement, GO,                    
            5.50%, 12/1/10..........................              
   305,000  Chicago, GO, 6.00%, 1/1/09, Callable           326,350
            1/1/08 @ 102 (Insured by FGIC)..........              
 4,270,000  Du Page & Will Counties, Community           4,344,724
            School District No. 204, GO, 4.95%,                   
            12/30/01 (Insured by FGIC)..............              
 4,000,000  Illinois Development Finance Authority,      4,130,000
            Pollution Control Revenue, Commonwealth               
            Edison, 5.30%, 1/15/04 (Insured by                    
            MBIA)...................................              
 1,000,000  Illinois State Toll Highway Authority,       1,027,500
            5.50%, 1/1/13...........................              
 2,640,000  Lake County Illinois School District No.     2,590,500
            13, 3.95%, 12/1/03 (LOC: Guaranteed                   
            Student Loans)..........................              
 3,135,000  Northwest Suburban Municipal Joint           3,232,969
            Action, Water Agency, Water Supply                    
            System, Series A, 5.25%, 5/1/04 (Insured              
            by MBIA)................................              
   745,000  University of Illinois Revenue, Health         756,175
            Service Facility, 4.90%, 10/1/01                      
            (Insured by AMBAC)......................              
                                                      ------------
                                                        23,369,437
                                                      ------------
            INDIANA (3.6%):                                       
 1,100,000  Greenwood Indiana School Building Corp.,     1,091,750
            4.75%, 7/15/07..........................              
 2,000,000  Indiana Municipal Power Supply Agency,       2,137,500
            System Revenue, Series B, 5.88%, 1/1/10               
            (Insured by MBIA).......................              
 3,000,000  Indiana Municipal Power Supply Agency,       3,217,500
            System Revenue, Series B, 6.00%, 1/1/13               
            (Insured by MBIA).......................              
   465,000  Indiana State Educational Facilities           449,306
            Authority Revenue, 4.35%, 10/1/07                     
            (Insured by AMBAC)......................              
 1,000,000  Indiana Transportation Finance               1,046,250
            Authority, Highway Revenue, Series A,                 
            5.75%, 6/1/12 (Insured by AMBAC)........              
 1,565,000  Indianapolis Utilities District, Series      1,201,138
            B, 3.50%, 6/1/18 (Insured by FGIC)......              
 1,300,000  Purdue University Student Fee Revenue,       1,316,250
            Series P, 5.25%, 7/1/13.................              
 1,000,000  Purdue University Student Fee Revenue,       1,042,820
            Series D, 6.50%, 7/1/03, Callable 1/1/00              
            @ 103...................................              
                                                      ------------
                                                        11,502,514
                                                      ------------

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            IOWA (0.6%):                                          
$2,000,000  Chillicothe Pollution Control Revenue     $  1,975,000
            Bond, 4.25%, 11/1/23, Mandatory Put                   
            11/1/03 @ 100...........................              
                                                      ------------
            LOUISIANA (2.3%):                                     
 4,000,000  Louisiana State, Series A, GO, 5.30%,        4,155,000
            8/1/04 (Insured by MBIA)................              
 3,000,000  Louisiana State, Series A, GO, 6.00%,        3,232,500
            4/15/07 (Insured by FGIC)...............              
                                                      ------------
                                                         7,387,500
                                                      ------------
            MARYLAND (0.0%):                                      
    50,000  Maryland State Refunding Bond, GO,              50,188
            4.20%, 8/1/01...........................              
                                                      ------------
            MASSACHUSETTS (2.3%):                                 
 3,750,000  Massachusetts State Port Authority,          3,459,375
            5.00%, 7/1/28, Callable 7/1/08 @ 101....              
 3,750,000  Massachusetts State, Special Obligation      3,839,063
            Revenue, Series A, 5.25%, 6/1/08                      
            (Insured by AMBAC)......................              
                                                      ------------
                                                         7,298,438
                                                      ------------
            MICHIGAN (18.3%):                                     
 2,215,000  Battle Creek Downtown Development            2,386,663
            Authority, 6.00%, 5/1/07 (Insured by                  
            MBIA)...................................              
 4,000,000  Battle Creek Downtown Development            4,534,999
            Authority, Tax Increment Revenue, 7.30%,              
            5/1/10..................................              
   300,000  Cadillac Public Schools, GO, 7.25%,            339,000
            5/1/05 (Insured by FGIC)................              
 2,100,000  Caledonia Community Schools, GO, 6.70%,      2,270,625
            5/1/22, Prerefunded 5/1/02 @102 (Insured              
            by AMBAC)...............................              
 1,525,000  Detroit Michigan UTGO, 4.10%, 4/1/03....     1,486,875
 3,000,000  Detroit Sewage Disposal Revenue, Series      3,251,250
            B, 6.00%, 7/1/09 (Insured by MBIA)......              
 6,000,000  Detroit Water Supply System, Permanent       6,029,999
            Linked Bonds, 5.25%, 7/1/13, Callable                 
            7/1/04 @ 104 (Insured by FGIC)..........              
 1,000,000  Detroit Water Supply System, Second          1,022,500
            Lien, Series A, 5.20%, 7/1/08 (Insured                
            by MBIA)................................              
 3,000,000  Detroit, GO, Distributable State Aid,        3,075,000
            5.70%, 5/1/01 (Insured by AMBAC)........              
 2,840,000  Grand Ledge Public Schools District, GO,     2,921,650
            5.35%, 5/1/10 (Insured by MBIA).........              
   205,000  Grand Rapids Charter Township; Porter          201,925
            Hills Obligated, 4.20%, 7/1/03..........              
   210,000  Grand Rapids Charter Township; Porter          206,063
            Hills Obligated, 4.25%, 7/1/04..........              
   200,000  Grand Rapids Charter Township; Porter          194,750
            Hills Obligated, 4.35%, 7/1/05..........              
 1,700,000  Greater Detroit Resource Recovery            1,774,375
            Authority, Series A, 5.50%, 12/13/04                  
            (Insured by AMBAC)......................              

CONTINUED 
76

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Kent Funds                                
                  INTERMEDIATE TAX-FREE FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       

MICHIGAN (CONTINUED)                                    

                                                                [Download Table]
                                                                  
$1,000,000  Ingham County, GO, 5.13%, 11/1/12         $  1,000,000
            (Insured by FSA)........................              
 2,000,000  Kalamazoo Hospital Finance Authority,        2,070,000
            Refunding & Improvement, Bronson                      
            Methodist Hospital, 5.35%, 5/15/06                    
            (Insured by MBIA).......................              
   250,000  Michigan Higher Education Facilities           241,250
            Authority, 4.50%, 10/1/07...............              
   320,000  Michigan Higher Education Facilities           308,000
            Authority, 4.60%, 10/1/08...............              
   200,000  Michigan Higher Education Facilities           192,250
            Authority, 4.70%, 10/1/09...............              
   590,000  Michigan Higher Education Facilities           562,713
            Authority, 4.80%, 10/1/10...............              
 1,000,000  Michigan Municipal Bond Authority,             986,250
            3.65%, 11/1/01..........................              
 2,000,000  Michigan State Comprehensive                 2,065,000
            Transportation, Series B, 5.50%,                      
            5/15/02.................................              
 1,600,000  Michigan State Hospital Finance              1,614,000
            Authority, Sisters of Mercy Health Corp.              
            Bond 1993, Series F, 4.60%, 8/15/02                   
            (Insured by MBIA).......................              
 1,450,000  Michigan State Hospital Finance              1,469,938
            Authority, St. John Hospital & Medical                
            Center, 5.00%, 5/15/06 (Insured by                    
            AMBAC)..................................              
 1,000,000  Michigan State Housing Development           1,013,750
            Authority, Rental Housing Revenue,                    
            5.15%, 10/1/00 (Insured by MBIA)........              
 1,000,000  Michigan State South Central Power           1,065,000
            Agency, Power Supply System Revenue,                  
            5.80%, 11/1/05 (Insured by MBIA)........              
 1,000,000  Michigan State Strategic Fund, Hope            986,250
            Network Project, Series B, 4.80%,                     
            9/1/08, (LOC: First of America).........              
 1,000,000  Michigan State Strategic Fund, Hope            982,500
            Network Project, Series B, 5.13%,                     
            9/1/13, Callable 9/1/08 @ 102, (LOC:                  
            First of America).......................              
 2,300,000  Michigan State Strategic Fund, Limited       2,601,875
            Obligation Revenue, Ford Motor Co.                    
            Project, Series A, 7.10%, 2/1/06........              
 2,500,000  Michigan State Trunk Line, Series A,         2,590,625
            5.50%, 10/1/02..........................              
 3,500,000  Michigan State Underground Storage Tank      3,744,999
            Financial Assurance Authority, Series I,              
            6.00%, 5/1/05 (Insured by AMBAC)........              
 2,000,000  Northville Public Schools, Series A, GO,     2,127,500
            7.00%, 5/1/08...........................              
 1,575,000  South Redford School District, 5.25%,        1,620,281
            5/1/09 (Insured by FGIC)................              
 1,000,000  Western Michigan University Revenue, GO,     1,028,750
            5.40%, 11/15/01 (Insured by FGIC).......              
                                                      ------------
                                                        57,966,605
                                                      ------------

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            MINNESOTA (1.2%):                                     
$1,000,000  Minneapolis Community Development         $  1,036,250
            Agency, Tax Increment Revenue, 7.00%,                 
            9/1/00 (Insured by MBIA)................              
 2,500,000  Minneapolis Minnesota Sales Tax, 6.15%,      2,650,000
            4/1/05..................................              
                                                      ------------
                                                         3,686,250
                                                      ------------
            NEW JERSEY (4.0%):                                    
   350,000  Manalapan School District, GO, 5.00%,          348,688
            12/1/11, Callable 12/1/08 @ 100 (Insured              
            by FGIC)................................              
 6,000,000  New Jersey Economic Development              6,660,000
            Authority, Market Transition Facility                 
            Revenue, Senior Lien, 7.00%, 7/1/04                   
            (Insured by MBIA).......................              
 1,000,000  New Jersey Economic Development              1,092,500
            Authority, Market Transition Facility                 
            Revenue, Series A 1994, 7.00%, 7/1/03                 
            (Insured by MBIA).......................              
 1,375,000  New Jersey State, Series D, GO, 5.25%,       1,400,781
            2/15/01.................................              
 3,000,000  Ocean County Utilities Authority,            3,228,750
            Wastewater Revenue, Refunding, GO,                    
            6.00%, 1/1/07...........................              
                                                      ------------
                                                        12,730,719
                                                      ------------
            NEW YORK (2.2%):                                      
 1,030,000  Metropolitan Transportation Authority,       1,073,775
            Series M, 5.50%, 7/1/08 (Insured by                   
            FGIC)...................................              
 1,660,000  New York State Urban Development Corp.,      1,684,900
            Refunding, Syracuse University Center,                
            5.50%, 1/1/15...........................              
 1,250,000  Triborough Bridge & Tunnel Authority,        1,201,563
            5.00%, 1/1/16 (Insured by FGIC).........              
 3,000,000  Triborough Bridge & Tunnel Authority,        3,078,750
            General Purpose, Series Y, 5.50%,                     
            1/1/17..................................              
                                                      ------------
                                                         7,038,988
                                                      ------------
            NORTH CAROLINA (0.6%):                                
 2,000,000  North Carolina Municipal Power Agency        2,042,500
            No. 1, Catawba Electric Revenue, 5.90%,               
            1/1/03..................................              
                                                      ------------
            OHIO (1.9%):                                          
   500,000  Cleveland Airport System Revenue, Series       518,125
            A, 5.50%, 1/1/04........................              
   500,000  Cleveland-Cuyahoga County Port                 502,500
            Authority, Rock & Roll Hall of Fame,                  
            Refunding, Subordinated Bonds, 4.90%,                 
            12/1/00.................................              
 5,000,000  Ohio State Building Authority, 5.00%,        5,106,250
            10/1/02.................................              
                                                      ------------
                                                         6,126,875
                                                      ------------

CONTINUED 
77

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Kent Funds                                
                  INTERMEDIATE TAX-FREE FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            OKLAHOMA (1.2%):                                      
$3,500,000  Tulsa Industrial Authority, University    $  3,801,875
            of Tulsa, Series A, 6.00%, 10/1/16                    
            (Insured by MBIA).......................              
                                                      ------------
            PENNSYLVANIA (2.1%):                                  
 2,000,000  Allegheny County Airport Revenue (AMT),      2,025,000
            5.00%, 1/1/02 (Insured by MBIA).........              
 4,260,000  Chartiers Valley Joint School, ETM,          4,531,575
            6.15%, 3/1/07...........................              
                                                      ------------
                                                         6,556,575
                                                      ------------
            PUERTO RICO (1.7%):                                   
 3,055,000  Puerto Rico Commonwealth Aqueduct &          3,291,763
            Sewer Authority, 6.00%, 7/1/06..........              
 2,000,000  Puerto Rico Commonwealth Highway &           2,027,500
            Transportation Authority, Highway                     
            Revenue, Series X, 4.90%, 7/1/01........              
                                                      ------------
                                                        5,319,263,
                                                      ------------
            RHODE ISLAND (1.6%):                                  
 1,000,000  Providence, GO, 6.70%, 1/15/02,              1,035,860
            Prerefunded 1/15/00 @ 102 (Insured by                 
            MBIA)...................................              
 3,025,000  Rhode Island State, Series A, GO, 5.50%,     3,168,688
            8/1/04 (Insured by MBIA)................              
 1,000,000  State Depositors Economic Protection         1,030,000
            Corp., Series B, Special Obligation,                  
            5.20%, 8/1/03 (Insured by MBIA).........              
                                                      ------------
                                                         5,234,548
                                                      ------------
            TENNESSEE (0.4%):                                     
 1,230,000  Tennessee State, Series B, GO, 6.20%,        1,277,663
            6/1/01..................................              
                                                      ------------
            TEXAS (10.1%):                                        
   400,000  Arlington Permanent Improvements, GO,          411,500
            5.38%, 8/15/08, Callable 8/15/06 @                    
            100.....................................              
 2,250,000  Central Texas Higher Education               2,261,250
            Authority, Inc., 4.85%, 12/1/02.........              
 2,245,000  Dallas Independent School District, GO,      2,329,188
            5.40%, 8/15/03 (Insured by PSFG)........              
 1,500,000  Houston Water & Sewer System Revenue,        1,578,750
            Junior Lien, Series C, 5.75%, 12/1/03                 
            (Insured by MBIA).......................              
 1,000,000  Houston Water & Sewer System Revenue,        1,063,750
            Prior Lien, Series A, 7.00%, 12/1/01                  
            (Insured by AMBAC)......................              
 3,000,000  Lower Colorado River Authority, 4.90%,       3,026,250
            1/1/07, Callable 1/1/06 @ 102...........              
 1,000,000  Pasadena Independent School District,        1,052,500
            GO, 6.75%, 8/15/05, Prerefunded 8/15/01               
            @ 100...................................              
 1,050,000  Round Rock Independent School District,      1,081,500
            GO, 5.25%, 2/15/05 (Insured by PSFG)....              
 2,980,000  San Antonio Texas Water Revenue:             3,173,699
            Unrefunded Balance, 6.30%, 5/15/04                    
            (Insured by FGIC).......................              


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       

TEXAS (CONTINUED)                                       

                                                                [Download Table]
                                                                  
$2,800,000  Texas Municipal Power Agency, 5.60%,      $  2,880,500
            9/1/01 (Insured by MBIA)................              
 5,595,000  Texas State Public Finance Authority,        6,112,537
            Series A, GO, 6.50%, 10/1/04............              
 4,450,000  Texas State, Series A, GO, 5.70%,            4,678,062
            10/1/03.................................              
 1,155,000  United Texas Independent School              1,173,769
            District, 5.5, 8/15/14 (LOC: PSF-GTD)                 
            (b).....................................              
 1,015,000  University of Texas, University Revenue,     1,082,244
            Series A, 6.60%, 8/15/02, Callable                    
            8/15/01 @ 102...........................              
                                                      ------------
                                                        31,905,499
                                                      ------------
            VIRGINIA (2.0%):                                      
 4,675,000  Metropolitan Washington DC Airports,         4,879,531
            5.50%, 10/1/05..........................              
 1,500,000  Norfolk, GO, 5.13%, 6/1/01..............     1,526,250
                                                      ------------
                                                         6,405,781
                                                      ------------
            WASHINGTON (5.7%):                                    
 5,000,000  Port Seattle Passenger Facilities (AMT),     5,025,000
            Series B, 5.00%, 12/1/07 (Insured by                  
            AMBAC)..................................              
 1,010,000  Port Tacoma Washington, (AMT), 4.9%,         1,006,213
            12/1/07, (LOC: AMBAC)...................              
 2,695,000  Tacoma Electric System, Refunding,           2,883,650
            6.00%, 1/1/06 (Insured by AMBAC)........              
 8,000,000  Washington State, Series A, GO, 5.50%,       8,339,999
            9/1/05, Callable 9/1/04 @ 100...........              
   850,000  Washington State, Series III-H, Motor          897,813
            Vehicle Fuel Tax, 5.75%, 9/1/12.........              
                                                      ------------
                                                        18,152,675
                                                      ------------
            WISCONSIN (2.0%):                                     
 2,500,000  Milwaukee County Revenue, Series B,          2,500,000
            4.35%, 6/1/29 (LOC: First National                    
            Bank)...................................              
   350,000  Milwaukee County, Series A, GO, 5.00%,         345,188
            10/1/10, Callable 10/1/08 @ 100.........              
 1,025,000  Milwaukee Metropolitan Sewer District,       1,032,667
            Series A, GO, 6.60%, 10/1/99............              
 1,500,000  Milwaukee Metropolitan Sewer District,       1,552,500
            Series A, GO, ETM, 6.70%, 10/1/00.......              
 1,000,000  Wisconsin State Public Power, Inc.,          1,048,450
            Supply System, Series A, 7.00%, 7/1/01,               
            Callable 7/1/00 @ 102 (Insured by                     
            AMBAC)..................................              
                                                      ------------
                                                         6,478,805
                                                      ------------
            WYOMING (0.3%):                                       
 1,000,000  Campbell County School District, No. 001     1,027,500
            Gillette, GO, 5.15%, 6/1/02.............              
                                                      ------------
            TOTAL MUNICIPAL BONDS...................   309,870,299
                                                      ------------

CONTINUED 
78

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Kent Funds                                
                  INTERMEDIATE TAX-FREE FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
INVESTMENT COMPANIES (1.4%):                                      
$4,553,660  Dreyfus Tax Exempt Money Market           $  4,553,660
            Fund....................................              
                                                      ------------
            TOTAL INVESTMENT COMPANIES..............     4,553,660
                                                      ------------
TOTAL INVESTMENTS                                                 
(Cost $305,666,178) (a) -- 98.9%....................   314,423,959
                                                      ------------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.1%.......     3,547,877
                                                      ------------
TOTAL NET ASSETS -- 100.0%..........................  $317,971,836
                                                      ------------
                                                      ------------

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $ 10,624,422 
Unrealized depreciation...........................    (1,866,641)
                                                    ------------ 
Net unrealized appreciation.......................  $  8,757,781 
                                                    ------------ 
                                                    ------------ 

(b)  Represents security purchased on a when issued basis.                      
AMBAC - AMBAC Indemnity Corp.                                                   
AMT - Alternative Minimum Tax Paper,                                            
ETM - Escrowed to Maturity                                                      
FGIC - Financial Guaranty Insurance Corp.                                       
FSA - Financial Security Assurance                                              
GO - General Obligation                                                         
LOC - Letter of Credit                                                          
MBIA - Municipal Bond Insurance Association                                     
PSFG - Permanent School Fund Guarantee                                          

SEE NOTES TO FINANCIAL STATEMENTS.
79

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Kent Funds                                
            TAX-FREE INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
ALTERNATIVE MINIMUM TAX PAPER (0.9%):                             
            LOUISIANA (0.9%):                                     
$1,000,000  Louisiana Housing Finance Agency, Single  $  1,071,250
            Family Mortgage Revenue, 6.40%,                       
            6/1/30, Callable 6/1/09 @ 101                         
            (LOC: GNMA/FNMA)........................              
                                                      ------------
            TOTAL ALTERNATIVE MINIMUM TAX PAPER.....     1,071,250
                                                      ------------
MUNICIPAL BONDS (96.4%):                                          
            CALIFORNIA (10.6%):                                   
 1,000,000  Anaheim Public Financing Authority,          1,092,500
            Lease Revenue, Public Improvements                    
            Project, Series A, 6.00%, 9/1/24                      
            (Insured by FSA)........................              
 1,000,000  California Educational Facilities            1,001,250
            Authority, Santa Clara University,                    
            5.25%, 9/1/17                                         
            (LOC: AMBAC)............................              
   500,000  California Educational Facilities              501,250
            Authority, Santa Clara University,                    
            5.25%, 9/1/18                                         
            (LOC: AMBAC)............................              
 1,400,000  California State, GO, 7.00%, 6/1/05.....     1,585,500
 2,000,000  California State, GO, 6.25%, 9/1/12.....     2,235,000
 3,000,000  Northern California Power Agency             3,168,749
            Revenue, Geothermal Project, Series A,                
            5.50%, 7/1/05 (Insured by AMBAC)........              
 2,000,000  Orange County, Series A, 6.00%, 6/1/10       2,170,000
            (Insured by MBIA).......................              
 1,380,000  Turlock Irrigation District Revenue,         1,502,475
            Series A, 6.00%, 1/1/07 (Insured by                   
            MBIA)...................................              
                                                      ------------
                                                        13,256,724
                                                      ------------
            COLORADO (7.0%):                                      
   400,000  Colorado Housing Finance Authority,            394,500
            4.25%, 10/1/05..........................              
   650,000  Denver City & County Airport Revenue,          707,688
            Series C, (AMT), 6.75%, 11/15/22,                     
            Prerefunded 11/15/02 @ 102..............              
 1,580,000  Denver City & County Airport Revenue,        1,682,700
            Series C, (AMT), 6.75%, 11/15/22,                     
            Callable 11/15/02 @ 102.................              
 2,730,000  Denver City & County School District No.     2,706,113
            1, 5.25%, 12/1/16, Callable 12/1/09 @                 
            101 (Insured by FGIC)...................              
 3,365,000  Denver City & County School District No.     3,327,143
            1, 5.25%, 12/1/17, Callable 12/1/09 @                 
            101 (Insured by FGIC)...................              
                                                      ------------
                                                         8,818,144
                                                      ------------
            GEORGIA (1.8%):                                       
 1,000,000  Georgia State, Series B, GO, 5.95%,          1,082,500
            3/1/08..................................              
 1,300,000  Private Colleges & Universities              1,241,500
            Authority, Mercer University Project,                 
            Series A, 4.75%, 10/1/11, Callable                    
            10/1/09 @ 101...........................              
                                                      ------------
                                                         2,324,000
                                                      ------------


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            HAWAII (2.5%):                                        
$2,000,000  Hawaii State, Series CB, GO, 5.75%,       $  2,105,000
            1/1/07..................................              
   200,000  Honolulu City & County, Pre-refunded,          211,500
            Series A, ETM, 5.75%, 4/1/10............              
   800,000  Honolulu City & County, Series A, 5.75%,       844,000
            4/1/10..................................              
                                                      ------------
                                                         3,160,500
                                                      ------------
            IDAHO (1.2%):                                         
 1,500,000  Ada & Canyon Counties School District        1,563,750
            No. 2, GO, 5.50%, 7/30/13...............              
                                                      ------------
            ILLINOIS (10.2%):                                     
 2,000,000  Chicago Metropolitan, Water Reclamation      2,069,999
            District, Capital Improvement, GO,                    
            5.50%, 12/1/10..........................              
 1,000,000  Chicago Public Building Commission,          1,212,500
            Series A, ETM, 7.00%, 1/1/20 (Insured by              
            MBIA)...................................              
 2,000,000  Chicago School Finance Authority, Series     2,025,000
            A, GO, 4.90%, 6/1/05, Callable 6/1/04                 
            @ 102 (Insured by MBIA).................              
 1,750,000  Chicago Single Family Mortgage Revenue,      1,728,125
            Series A, 4.70%, 10/1/17, Callable                    
            4/1/09                                                
            @ 102...................................              
 1,770,000  Chicago UTGO Emergency Telelephone           1,750,088
            System, 5.25%, 1/1/18 (Insured by                     
            FGIC)...................................              
 2,000,000  Du Page & Will Counties, Community           2,035,000
            School District No. 204, GO, 4.95%,                   
            12/30/01 (Insured by FGIC)..............              
 1,000,000  Illinois State Sales Tax, Series S,          1,006,250
            5.00%, 6/15/08..........................              
 1,000,000  Will County Forest Preserve District,        1,045,000
            GO, 5.90%, 12/1/03, Callable 12/1/02 @                
            100 (Insured by AMBAC)..................              
                                                      ------------
                                                        12,871,962
                                                      ------------
            INDIANA (5.2%):                                       
 2,000,000  Indiana Municipal Power Supply Agency,       2,145,000
            System Revenue, Series B, 6.00%, 1/1/13               
            (Insured by MBIA).......................              
 2,250,000  Indiana State Office Building                2,278,125
            Commission, Capital Complex, Government               
            Center                                                
            Parking Facilities, Series A, 4.80%,                  
            7/1/03 (Insured by AMBAC)...............              
 1,000,000  Indiana Transportation Finance               1,046,250
            Authority, Highway Revenue, Series A,                 
            5.75%, 6/1/12                                         
            (Insured by AMBAC)......................              
 1,000,000  Marion County Hospital Authority             1,066,250
            Revenue, Community Hospital,                          
            Indianapolis Project, ETM, 6.00%,                     
            5/1/06..................................              
                                                      ------------
                                                         6,535,625
                                                      ------------

CONTINUED 
80

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Kent Funds                                
            TAX-FREE INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            IOWA (1.8%):                                          
 2,055,000  Iowa Finance Authority, Private College   $  2,324,719
            Revenue, Drake University Project,                    
            6.50%,                                                
            12/1/11 (Insured by MBIA)...............              
                                                      ------------
            KENTUCKY (1.0%):                                      
 1,315,000  Louisville & Jefferson County,               1,283,769
            Metropolitan Sewer District, Sewer &                  
            Drain System                                          
            Revenue, Series A, 5.25%, 5/15/27,                    
            Callable 5/15/07 @ 101 (Insured by                    
            MBIA)...................................              
                                                      ------------
            LOUISIANA (0.2%):                                     
   315,000  Shreveport LA, GO, 4.00%, 2/1/08               295,313
            (Insured by FGIC).......................              
                                                      ------------
            MARYLAND (1.6%):                                      
 2,000,000  Prince Georges County, Consolidated          2,037,500
            Public Improvement, GO, 5.00%, 1/1/02                 
            (Insured by MBIA).......................              
                                                      ------------
            MASSACHUSETTS (3.3%):                                 
 2,370,000  Massachusetts State Port Authority,          2,186,325
            5.00%, 7/1/28, Callable 7/1/08 @ 101....              
 1,000,000  Massachusetts State Water, Resource            926,250
            Authority, Series B, 5.00%, 12/1/25,                  
            Callable 12/1/05 @ 102 (Insured by                    
            MBIA)...................................              
 1,000,000  Massachusetts State, Series B, GO,           1,045,000
            5.40%, 11/1/06..........................              
                                                      ------------
                                                         4,157,575
                                                      ------------
            MICHIGAN (16.9%):                                     
 2,000,000  Battle Creek Downtown Development            2,267,499
            Authority, Tax Increment Revenue,                     
            7.30%, 5/1/10, Prerefunded 5/1/04                     
            @ 102...................................              
 1,300,000  Berkley School District, GO, 7.00%,          1,472,250
            1/1/07 (Insured by FGIC)................              
 2,000,000  Detroit Sewage Disposal Revenue, Series      2,167,499
            B, 6.00%, 7/1/09 (Insured by MBIA)......              
 1,000,000  Detroit Water Supply System, Series B,       1,020,000
            5.10%, 7/1/07 (Insured by MBIA).........              
 1,625,000  Jenison Michigan Public Schools, 5.25%,      1,629,063
            5/1/15 (Insured by FGIC)................              
   930,000  Kent County Airport Facility, Kent             977,663
            County International Airport, (AMT),                  
            5.50%,                                                
            1/1/07, Callable 1/1/05 @ 102...........              
 1,000,000  Michigan Higher Education Facilities           981,250
            Authority, 5.35%, 5/1/15, Callable                    
            5/1/08                                                
            @ 101 (LOC: FOA)........................              
 2,000,000  Michigan State Hospital Finance              1,940,000
            Authority, Sisters of Mercy, Series P,                
            5.25%, 8/15/21,                                       
            Callable 8/15/03 @ 102 (Insured by                    
            MBIA)...................................              
 1,300,000  Michigan State Housing Development           1,324,375
            Authority, Rental Housing Revenue,                    
            Series A, 5.15%, 4/1/02 (Insured by                   
            AMBAC)..................................              


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       

MICHIGAN (CONTINUED)                                    

                                                                [Download Table]
                                                                 
1,000,000  Michigan State South Central Power        $  1,065,000
           Agency, Power Supply System Revenue,                  
           5.80%, 11/1/05 (Insured by MBIA)........              
1,100,000  Michigan State Strategic Fund, Dow           1,100,000
           Chemical Co. Project, 3.45%*, 7/1/99....              
2,000,000  Michigan State Trunk Line, 5.50%,            2,112,500
           11/1/16, Prerefunded 11/1/06 @ 101                    
           (Insured                                              
           by FGIC)................................              
1,000,000  Michigan State Underground Storage Tank      1,070,000
           Financial Assurance Authority, Series I,              
           6.00%, 5/1/05 (Insured by AMBAC)........              
2,000,000  Michigan State University Revenue,           2,067,500
           Series A, 5.50%, 8/15/22, Callable                    
           8/15/02 @ 100...........................              
                                                     ------------
                                                       21,194,599
                                                     ------------
           MISSISSIPPI (0.3%):                                   
  350,000  Mississippi Home Corp. Single Family           343,875
           Mortgage, Class 4, Series A, 4.80%,                   
           6/1/19,                                               
           Callable 6/1/09 @ 102...................              
                                                     ------------
           MISSOURI (0.4%):                                      
  335,000  Missouri State, Health & Education             373,944
           Facilities, 6.50%, 2/15/21, Callable                  
           2/15/06 @ 102...........................              
  165,000  Missouri State, Health & Education             174,281
           Facilities, Lake of Ozarks General                    
           Hospital,                                             
           6.50%, 2/15/21, Callable 2/15/06 @                    
           102.....................................              
                                                     ------------
                                                          548,225
                                                     ------------
           NEBRASKA (0.9%):                                      
1,075,000  Omaha Public Power District, 5.10%,          1,093,813
           2/1/08..................................              
                                                     ------------
           NEVADA (3.4%):                                        
1,805,000  Clark County School District, GO, 5.75%,     1,929,094
           6/15/10, Prerefunded 6/15/06 @ 101                    
           (Insured by FGIC).......................              
2,000,000  Nevada State, Nevada Municipal Bond          2,375,000
           Bank, Series A, GO, 8.00%, 11/1/05......              
                                                     ------------
                                                        4,304,094
                                                     ------------
           NEW JERSEY (3.4%):                                    
1,000,000  New Jersey Economic Development              1,017,500
           Authority Revenue, Trenton Office                     
           Complex, 5.25%, 6/15/10 (Insured by                   
           FSA)....................................              
1,500,000  New Jersey Economic Development              1,665,000
           Transition Facility Revenue, Senior                   
           Lien,                                                 
           7.00%, 7/1/04 (Insured by MBIA).........              
1,500,000  New Jersey State Transportation Trust        1,621,875
           Fund Authority, Transportation System,                
           Series A, 6.00%, 12/15/06 (Insured by                 
           MBIA)...................................              
                                                     ------------
                                                        4,304,375
                                                     ------------

CONTINUED 
81

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Kent Funds                                
            TAX-FREE INCOME FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            NEW YORK (6.3%):                                      
 3,360,000  New York City Transitional Finance        $  3,099,600
            Authority, Future Tax Secured, Series C,              
            5.00%, 5/1/29, Callable 5/1/09 @ 101....              
 1,350,000  New York City, Municipal Water & Sewer       1,343,250
            Revenue, 5.50%, 6/15/24, Callable                     
            6/15/06                                               
            @ 101...................................              
 1,500,000  New York City, Tax Revenue Anticipation      1,515,000
            Note, Livingston Plaza Project, 5.40%,                
            1/1/18 (Insured by FSA).................              
 1,000,000  New York State Thruway Authority, Series     1,072,500
            1997 B, 6.00%, 4/1/07...................              
 1,000,000  Triborough Bridge & Tunnel Authority,          961,250
            5.00%, 01/01/16 (Insured by FGIC).......              
                                                      ------------
                                                         7,991,600
                                                      ------------
            OKLAHOMA (1.7%):                                      
 1,000,000  Grand River Dam Authority, 5.75%, 6/1/08     1,065,000
            (Insured by FSA)........................              
 1,000,000  Tulsa Industrial Authority, University       1,086,250
            of Tulsa, Series A, 6.00%, 10/1/16                    
            (Insured                                              
            by MBIA)................................              
                                                      ------------
                                                         2,151,250
                                                      ------------
            PENNSYLVANIA (1.6%):                                  
 2,000,000  Pennsylvania State, First Series, GO,        2,005,000
            5.38%, 5/15/16, Callable 5/15/06 @ 101.5              
            (Insured by FGIC).......................              
                                                      ------------
            RHODE ISLAND (0.8%):                                  
 1,000,000  Convention Center Authority, Series B,       1,003,750
            5.00%, 5/15/09 (Insured by MBIA)........              
                                                      ------------
            SOUTH CAROLINA (1.0%):                                
 1,200,000  Myrtle Beach Water & Sewer Revenue,          1,218,000
            4.90%, 3/1/02 (Insured by MBIA).........              
                                                      ------------
            TENNESSEE (1.0%):                                     
 1,225,000  Tennessee Housing Development Agency,        1,266,344
            Mortgage Finance, Series C, (AMT),                    
            5.95%,                                                
            7/1/09, Callable 7/1/05 @ 102 (Insured                
            by MBIA)................................              
                                                      ------------
            TEXAS (5.4%):                                         
 1,000,000  Brownsville Utility System, 6.25%,           1,103,750
            9/1/11 (Insured by......................              
 1,000,000  Harris County, Certificates of               1,077,500
            Obligation, 6.00%, 12/15/11.............              
 2,000,000  Texas City Industrial Development Corp.,     2,487,500
            Marine Terminal Revenue, Arco                         
            Pipeline Co. Project, 7.38%, 10/1/20....              
 2,000,000  Texas State, Series A, GO, 5.70%,            2,102,500
            10/1/03.................................              
                                                      ------------
                                                         6,771,250
                                                      ------------
            UTAH (2.4%):                                          
 2,175,000  Intermountain Power Agency, Utah Power       2,025,469
            Supply, Series D, 5.00%, 7/1/23,                      
            Callable                                              
            7/1/06 @ 102............................              
 1,000,000  St. George, Parks & Recreational               987,500
            Facilities, GO, 5.38%, 8/1/21, Callable               
            8/1/07 @ 101                                          
            (Insured by FGIC).......................              
                                                      ------------
                                                         3,012,969
                                                      ------------


PRINCIPAL                   SECURITY                     MARKET   
  AMOUNT                  DESCRIPTION                    VALUE    
----------  ----------------------------------------  ------------
                                                                  
MUNICIPAL BONDS (CONTINUED)                                       
            WASHINGTON (3.7%):                                    
 1,000,000  Douglas County Public Utility District    $  1,047,500
            No. 001, Electric Distribution System,                
            5.90%, 1/1/11, Callable 1/1/05 @ 102                  
            (Insured by MBIA).......................              
 2,500,000  Port Seattle Limited Tax, GO, (AMT),         2,578,125
            5.35%, 5/1/04...........................              
 1,000,000  Washington State, Motor Vehicle Fuel         1,092,500
            Tax, R-92D, GO, 6.25%, 9/1/07...........              
                                                      ------------
                                                         4,718,125
                                                      ------------
            WYOMING (0.8%):                                       
 1,000,000  Green River-Sweetwater County, Board           991,250
            Revenue, Series B, 4.50%, 3/1/14,                     
            Callable 3/1/05 @ 100...................              
                                                      ------------
            TOTAL MUNICIPAL BONDS...................   121,548,100
                                                      ------------

INVESTMENT COMPANIES (2.2%):                                      
$2,564,805  Dreyfus Tax Exempt Money Market Fund....     2,564,805
   147,502  Federated Tax Exempt Money Market              147,502
            Fund....................................              
                                                      ------------
            TOTAL INVESTMENT COMPANIES..............     2,712,307
                                                      ------------
TOTAL INVESTMENTS -- 99.5%..........................   125,331,657
                                                      ------------
(Cost $121,856,346) (a)                                           
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.5%.......       600,534
                                                      ------------
TOTAL NET ASSETS -- 100.0%..........................  $125,932,191
                                                      ------------
                                                      ------------

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                               
Unrealized appreciation...........................  $4,189,758 
Unrealized depreciation...........................    (714,447)
                                                    ---------- 
Net unrealized appreciation.......................  $3,475,311 
                                                    ---------- 
                                                    ---------- 

(b)  Represents security purchased on a when issued basis.                      
*  Variable rate security. Rate presented represents rate in effect at June 
     30, 1999. Maturity date reflects effective maturity for Rule 2a-7 purposes.

AMBAC AMBAC Indemnity Corp.                                                     

AMT Alternative Minimum Tax Paper                                               

ETM Escrowed to Maturity                                                        

FGIC Financial Guaranty Insurance Corp.                                         

FOA First of America                                                            

FSA Financial Security Assurance                                                

GO General Obligation                                                           

LOC Letter of Credit                                                            

MBIA Municipal Bond Insurance Association                                       

PSF Permanent School Fund                                                       

SEE NOTES TO FINANCIAL STATEMENTS.
82

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Kent Funds                                
                    MICHIGAN MUNICIPAL BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                  SECURITY                     MARKET   
 AMOUNT                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
MUNICIPAL BONDS (97.3%):                                         
           MICHIGAN (94.8%):                                     
1,465,000  Allegan Sanitary Sewer System, (AMT),     $  1,486,975
           5.45%, 11/1/02..........................              
2,000,000  Battle Creek Downtown Development            2,162,500
           Authority, Tax Increment Revenue, 6.90%,              
           5/1/04..................................              
1,000,000  Bay City Electric Utilility Revenue,         1,021,250
           5.15%, 1/1/07 (Insured by AMBAC)........              
 635,000   Bishop International Airport Authority,        636,588
           4.88%, 12/1/01..........................              
2,450,000  Brighton Area School District, 5.13%,        2,486,750
           5/01/08, (Insured by FSA)...............              
 875,000   Chippewa County Hospital Finance               876,628
           Authority, 4.40%, 11/1/99...............              
 260,000   Chippewa County Hospital Finance               260,325
           Authority, 4.60%, 11/1/00...............              
1,000,000  Chippewa Valley School District, GO,         1,053,750
           6.38%, 5/1/05, Prerefunded 5/1/01 @                   
           101.5 (Insured by FGIC).................              
1,700,000  Clintondale Community School District        1,712,750
           GO, 4.65%, 5/1/03.......................              
2,000,000  Dearborn School District, GO, 6.63%,         2,088,800
           5/1/09, Prerefunded 5/1/00 @ 102                      
           (Insured by MBIA).......................              
1,000,000  Dearborn School District, GO, 6.38%,         1,042,400
           5/1/10, Prerefunded 5/1/00 @ 102                      
           (Insured by MBIA).......................              
 965,000   Dearborn Sewage Disposal System, 6.90%,      1,028,931
           4/1/02 (Insured by MBIA)................              
1,800,000  Delta County Economic Development Corp.,     1,800,000
           Environmental Improvement Revenue, Mead               
           Escanaba Paper Co., Series F, 3.45%*,                 
           7/1/99, (LOC: Bank of Nova Scotia)......              
1,630,000  Detroit Michigan City School District,       1,599,438
           3.90%, 5/1/03 (Insured by MBIA).........              
1,000,000  Detroit Michigan City School District,         980,000
           3.90%, 11/1/03 (Insured by MBIA)........              
1,000,000  Detroit Michigan UTGO Series A, 3.90%,         980,000
           4/1/02..................................              
 580,000   Detroit, Distributable State Aid, GO,          589,959
           5.60%, 5/1/00 (Insured by AMBAC)........              
1,000,000  Detroit, GO, 5.00%, 4/1/04 (Insured by       1,016,250
           FGIC) ..................................              
 750,000   Detroit, GO, 6.00%, 4/1/06 (Insured by         800,625
           FGIC) ..................................              
1,570,000  Detroit, Local Development Finance           1,603,363
           Authority, Tax Increment Revenue, 5.25%,              
           5/1/07..................................              
1,730,000  Dexter Community School District, GO,        1,890,025
           6.25%, 5/1/07 (Insured by FGIC).........              
2,000,000  East China Township School District, GO,     2,102,500
           6.00%, 5/1/02, Callable 5/1/01 @ 102....              
1,000,000  Eastern Michigan University, GO, 5.80%,      1,031,250
           6/1/01 (Insured by AMBAC)...............              
 445,000   Farmington Hills Economic Development          455,569
           Corp. Revenue, Botsford Continuing Care,              
           Series A, 5.10%, 2/15/04 (Insured by                  
           MBIA)...................................              


PRINCIPAL                  SECURITY                     MARKET   
 AMOUNT                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
MUNICIPAL BONDS (CONTINUED)                                      

MICHIGAN (CONTINUED)                                        

                                                                [Download Table]
                                                                 
 470,000   Farmington Hills Economic Development     $    482,338
           Corp. Revenue, Botsford Continuing Care,              
           Series A, 5.20%, 2/15/05 (Insured by                  
           MBIA)...................................              
 465,000   Flint Hospital Building Authority,             465,000
           Hurley Medical Center, 4.00%, 7/1/99....              
1,400,000  Flint Hospital Building Authority,           1,389,500
           Hurley Medical Center, Series A, 5.00%,               
           7/1/03..................................              
 305,000   Flint Hospital Building Authority,             305,000
           Hurley Medical Center, Series B, 4.00%,               
           7/1/99..................................              
 740,000   Grand Haven Area Public Schools, 5.45%,        779,775
           5/1/04, (Insured by MBIA), Prerefunded                
           5/1/03 @ 102............................              
 260,000   Grand Haven Area Public Schools, 5.45%,        270,400
           5/1/04, (Insured by MBIA), Callable                   
           5/1/03 @ 102............................              
 510,000   Grand Rapids Charter Twp Michigan,             504,263
           4.10%, 7/1/02...........................              
1,250,000  Greater Detroit Resource Recovery            1,275,000
           Authority, Series B, 5.00%, 12/13/02                  
           (Insured by AMBAC)......................              
1,575,000  Hamilton Community Schools District,         1,645,875
           5.50%, 5/1/07 (Insured by FGIC).........              
1,250,000  Huron Valley School District, GO, 7.10%,     1,339,063
           5/1/08, Prerefunded 5/1/01 @ 102                      
           (Insured by FGIC).......................              
 750,000   Kalamazoo Hospital Finance Authority           780,000
           Revenue, Bronson Methodist Hospital,                  
           5.50%, 5/15/08 (Insured by MBIA)........              
1,810,000  Kalamazoo Hospital Finance Authority,        1,841,675
           Refunding & Improvement, Bronson                      
           Methodist Hospital, 4.95%, 5/15/02                    
           (Insured by MBIA).......................              
1,000,000  Kalamazoo Hospital Finance Authority,        1,030,000
           Refunding & Improvement, Bronson                      
           Methodist Hospital, 5.25%, 5/15/05                    
           (Insured by MBIA).......................              
1,295,000  Kenowa Hills Public Schools, GO, 5.50%,      1,351,656
           5/1/05..................................              
 500,000   Kent County Airport Facility, Kent             512,500
           County International Airport, (AMT),                  
           5.25%, 1/1/04...........................              
 505,000   Kent County Airport Facility, Kent             519,519
           County International Airport, (AMT),                  
           5.30%, 1/1/05...........................              
 645,000   Kent County Airport Facility, Kent             631,294
           County International Airport, (AMT),                  
           4.30%, 1/1/05 (Insured by MBIA).........              
1,150,000  Kent Hospital Finance Authority,             1,155,750
           Butterworth Hospital, 4.90%, 1/15/05....              
2,000,000  Lake Orion Community School District,        2,145,000
           GO, 6.20%, 5/1/04 (Insured by AMBAC)....              
2,034,014  Michigan Department of State Police          2,034,014
           Lease, 4.95%, 3/10/02 (b)...............              
1,265,000  Michigan Higher Education Facility           1,244,444
           Authority - Thomas M. Cooley Law School,              
           4.75%, 5/1/07, (LOC: National City).....              
1,000,000  Michigan Hospital Finance Authority,         1,071,250
           Sisters Of Mercy, 7.50%, 2/15/18,                     
           Prerefunded 2/15/01 @ 102...............              

CONTINUED 
83

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Kent Funds                                
                    MICHIGAN MUNICIPAL BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                  SECURITY                     MARKET   
 AMOUNT                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
MUNICIPAL BONDS (CONTINUED)                                      

MICHIGAN (CONTINUED)                                        

                                                                [Download Table]
                                                                 
1,020,000  Michigan Municipal Bond Authority, Local  $  1,059,525
           Government Loan Program, Qualified                    
           School, 6.35%, 5/15/01..................              
1,000,000  Michigan Municipal Bond Authority,           1,027,500
           Pooled Projects, Series B, 5.10%,                     
           10/1/04.................................              
2,000,000  Michigan Municipal Bond Authority, State     2,097,500
           Revolving Fund, 5.50%, 10/1/06..........              
1,500,000  Michigan Municipal Bond Authority, State     1,593,750
           Revolving Fund, Series A, 6.00%,                      
           10/1/03.................................              
 750,000   Michigan Public Power Agency, Belle            781,875
           River Project, Series A, 5.70%,                       
           1/1/03..................................              
2,000,000  Michigan State Building Authority,           1,965,000
           Series I, 4.25%, 10/15/05...............              
1,010,000  Michigan State Building Authority,             999,900
           Series I, 4.75%, 10/15/08,                            
           Program-Series I........................              
1,000,000  Michigan State Building Authority,           1,041,250
           Series II, 6.10%, 10/1/01...............              
3,000,000  Michigan State Comprehensive                 3,131,249
           Transportation, Series B, 5.63%,                      
           5/15/03.................................              
1,855,000  Michigan State Hospital Finance              1,922,244
           Authority, Bay Medical Center, Series A,              
           5.38%, 7/1/06 (Insured by FSA)..........              
2,000,000  Michigan State Hospital Finance              2,015,000
           Authority, Daughters of Charity National              
           Health System, 4.80%, 11/1/17, Mandatory              
           Put, 11/1/04 @ 100......................              
2,000,000  Michigan State Hospital Finance              2,092,500
           Authority, McLaren Obligated Group,                   
           Series A, 5.75%, 10/15/03...............              
 370,000   Michigan State Hospital Finance                369,538
           Authority, Memorial Healthcare Center,                
           4.40%,                                                
           11/15/01................................              
1,500,000  Michigan State Hospital Finance              1,599,375
           Authority, Mercy Health Services, Series              
           S, 6.00%, 8/15/06.......................              
1,000,000  Michigan State Hospital Finance              1,008,750
           Authority, Sisters of Mercy Health Corp.              
           Bond 1993, Series F, 4.60%, 8/15/02                   
           (Insured by MBIA).......................              
2,800,000  Michigan State Hospital Finance              2,995,999
           Authority, Sisters of Mercy Health                    
           Corp., Series J, 7.38%,                               
           2/15/11,Prerefunded 2/15/01 @ 102.......              
1,000,000  Michigan State Hospital Finance              1,017,500
           Authority, St. John Hospital & Medical                
           Center, 5.00%, 5/15/05 (Insured by                    
           AMBAC)..................................              
2,680,000  Michigan State Housing Development           2,733,599
           Authority, Rental Housing Revenue,                    
           Series A, (AMT), 5.25%, 10/1/01 (Insured              
           by MBIA)................................              
3,270,000  Michigan State Underground Storage, Tank     3,515,249
           Financial Assurance Authority, Series I,              
           6.00%, 5/1/06 (Insured by AMBAC)........              
 505,000   Michigan Strategic Fund, Clark                 502,475
           Retirement Community Project, 4.50%,                  
           6/1/03..................................              
 520,000   Michigan Strategic Fund, Clark                 509,600
           Retirement Community Project, 4.60%                   
           6/1/04..................................              
 610,000   Michigan Strategic Fund, Clark                 587,125
           Retirement Community Project, 4.85%,                  
           6/1/07..................................              

PRINCIPAL                  SECURITY                     MARKET   
 AMOUNT                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
MUNICIPAL BONDS (CONTINUED)                                      

MICHIGAN (CONTINUED)                                        

                                                                [Download Table]
                                                                 
 615,000   Michigan Strategic Fund, Hope Network     $    609,619
           Project, Series B, 4.75%, 9/1/07, (LOC:               
           First of America).......................              
1,000,000  Mount Clemens Community School District,     1,078,750
           GO, 6.60%, 5/1/20, Prerefunded 5/1/02 @               
           102 (Insured by MBIA)...................              
1,405,000  Oakland County Economic Development          1,405,000
           Corp., Boardwalk Shopping Center,                     
           4.38%*, 1/1/09, (LOC: Banc One),                      
           Mandatory Put, 7/1/03 @ 100.............              
1,040,000  Oakland County Economic Development          1,040,000
           Corp., Sugartree Shopping Center,                     
           4.38%*, 1/1/14, (LOC: Banc One),                      
           Mandatory Put, 7/1/03 @ 100.............              
1,000,000  Oakland Washtenaw County Community           1,078,750
           College, 6.65%, 5/1/11, Prerefunded                   
           5/1/02 @ 100............................              
3,000,000  Okemos Public School District, Series I,     3,198,749
           GO, 6.90%, 5/1/11, Prerefunded 5/1/01 @               
           102.....................................              
3,200,000  Plymouth-Canton Community School             3,379,999
           District, Series B, GO, 6.80%, 5/1/17,                
           Prerefunded 5/1/01 @ 101................              
 735,000   Reeths-Puffer Schools, GO, 6.75%, 5/1/01       768,075
           (Insured by FGIC).......................              
 750,000   Reeths-Puffer Schools, GO, 6.25%, 5/1/02       788,438
           (Insured by FGIC).......................              
2,000,000  Rockford Public Schools, GO, 7.38%,          2,080,540
           5/1/19, Prerefunded 5/1/00 @ 101........              
2,035,000  Walled Lake Consolidated School              2,052,806
           District, GO, 4.70%,....................              
2,235,000  Walled Lake Consolidated School              2,262,938
           District, GO, 4.80%,....................              
1,025,000  Washtenaw Community College, GO, 4.70%,      1,035,250
           4/1/03 (Insured by FGIC)................              
 550,000   Wayne County Downriver System Sewer            549,538
           Disposal, GO, 3.75%, 5/1/00.............              
1,000,000  Wayne State University, 4.25%, 11/15/03,       995,000
           (Insured by FGIC).......................              
1,750,000  Western Michigan University, Series A,       1,863,750
           6.50%, 7/15/21, Prerefunded 7/15/01 @                 
           102 (Insured by AMBAC)..................              
1,000,000  Wyandotte Electric Revenue, 6.20%,           1,071,250
           10/1/03 (Insured by MBIA)...............              
                                                     ------------
                                                      113,304,897
                                                     ------------
           PUERTO RICO (2.5%):                                   
3,000,000  Puerto Rico Commonwealth Highway &           3,041,250
           Transportation Authority, Highway                     
           Revenue, Series X, 4.90%, 7/1/01........              
                                                     ------------
           TOTAL MUNICIPAL BONDS (COST                           
           $115,008,326)...........................   116,346,147
                                                     ------------

CONTINUED 
84

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Kent Funds                                
                    MICHIGAN MUNICIPAL BOND FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                  SECURITY                     MARKET   
 AMOUNT                  DESCRIPTION                    VALUE    
---------  ----------------------------------------  ------------
                                                                 
INVESTMENT COMPANIES (1.5%):                                     
1,834,644  Dreyfus Tax Exempt Money Market Fund....  $  1,834,644
                                                     ------------
TOTAL INVESTMENT COMPANIES (COST $1,834,644).......     1,834,644
                                                     ------------
TOTAL INVESTMENTS (COST $116,842,970) (a) --                     
98.8%..............................................   118,180,791
OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2%......     1,379,836
                                                     ------------
TOTAL NET ASSETS -- 100.0%.........................  $119,560,627
                                                     ------------
                                                     ------------

---------------                                                                 

(a)  Represents cost for federal income tax purposes and differs from value by  
net unrealized appreciation of securities as follows:                 

                                                                [Download Table]
                                                                 
Unrealized appreciation...........................  $  1,861,274 
Unrealized depreciation...........................      (523,453)
                                                    ------------ 
Net unrealized appreciation.......................  $  1,337,821 
                                                    ------------ 
                                                    ------------ 

(b)  144a security which is restricted as to resale to institutional investors. 
This security has been deemed liquid by the Board of Trustees.        
*  Variable rate security. Rate presented represents rate in effect at June 
30, 1999. Maturity date reflects effective maturity for               
Rule 2a-7 purposes.                                                   
AMBAC AMBAC Indemnity Corp.                                                     
AMT Alternative Minimum Tax Paper                                               
FGIC Financial Guaranty Insurance Corp.                                         
FSA Financial Security Assurance                                                
GO General Obligation                                                           
LOC Letter of Credit                                                            
MBIA Municipal Bond Insurance Association                                       

SEE NOTES TO FINANCIAL STATEMENTS.
85

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Kent Funds                                
         MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
BANK NOTES (2.0%):                                                 
$ 5,000,000  First Union National Bank of North        $  5,000,000
             Carolina, 5.25%, 9/17/99................              
  8,000,000  Wacovia, 4.90%, 1/10/00.................     7,997,315
                                                       ------------
             TOTAL BANK NOTES........................    12,997,315
                                                       ------------
BANKERS ACCEPTANCES (2.1%):                                        
  4,000,000  First Union, 4.85%, 7/12/99.............     3,994,072
  5,000,000  First Union, 4.70%, 7/28/99.............     4,982,375
  2,390,711  First Union, 4.80%, 9/20/99.............     2,364,891
  2,291,000  First Union, 4.80%, 9/22/99.............     2,265,646
                                                       ------------
             TOTAL BANKERS ACCEPTANCES...............    13,606,984
                                                       ------------
CERTIFICATES OF DEPOSIT (5.4%):                                    
  5,000,000  Abn Amro Bank NV, 4.94%, 11/17/99.......     4,994,492
  5,000,000  Bank Of Nova Scotia, 5.13%, 9/22/99.....     5,000,000
  5,000,000  LaSalle Bank NA, 4.97%, 2/1/00..........     4,998,863
  9,500,000  Michigan National Bank, 4.94%,               9,500,281
             9/15/99.................................              
  5,000,000  National Westminster Bank, 5.20%,            4,997,867
             5/10/00 ................................              
  5,000,000  Toronto Dominion Bank, 5.13%, 4/28/00...     4,999,545
                                                       ------------
             TOTAL CERTIFICATES OF DEPOSIT...........    34,491,048
                                                       ------------
COMMERCIAL PAPER (38.7%):                                          
  4,000,000  Ameritech Cap Fdg Corp., 4.97%,              3,995,582
             7/9/99..................................              
  4,800,000  Ameritech Cap Fdg Corp., 5.00%,              4,792,667
             7/12/99.................................              
  5,000,000  Becton Dickinson & Co., 4.78%,8/19/99...     4,967,469
 19,685,000  BellSouth Telecommunications, 5.50%,        19,685,000
             7/1/99..................................              
  4,986,000  BellSouth Telecommunications, 5.05%,         4,981,803
             7/7/99..................................              
  5,000,000  BellSouth Telecommunications, 5.25%,         4,985,417
             7/21/99.................................              
 30,000,000  Cargill, Inc., 5.70%, 7/1/99............    30,000,001
  3,500,000  Coca Cola Co., 5.00%, 7/12/99...........     3,494,653
  5,000,000  DaimlerChrysler, 4.99%, 7/7/99..........     4,995,841
  4,669,000  DaimlerChrysler, 4.92%, 8/31/99.........     4,630,076
  5,000,000  DaimlerChyrsler, 4.75%, 7/9/99..........     4,994,722
  5,000,000  Dresdner US Finance, Inc., 4.87%,            4,999,324
             7/2/99..................................              
  5,000,000  Dresdner US Finance, Inc., 5.10%,            4,981,583
             7/27/99.................................              
  5,000,000  Duke Energy Trust, 5.00%, 7/6/99........     4,996,528
 20,000,000  Ford Motor Credit Corp., 5.64%,             20,000,000
             7/1/99..................................              
  4,200,000  Ford Motor Credit Corp., 5.50%,              4,196,792
             7/6/99..................................              
  5,000,000  Gannett Co. Inc., 5.10%, 7/19/99........     4,987,250
  7,000,000  General Electric Capital Corp., 4.82%,       6,973,757
             7/29/99.................................              
  5,000,000  General Electric Capital Corp., 4.82%,       4,971,883
             8/12/99.................................              
  7,000,000  General Electric Capital Corp., 4.83%,       6,926,745
             9/17/99.................................              
  5,000,000  General Electric Capital Corp., 4.91%,       4,858,838
             1/24/00.................................              
  5,000,000  General Electric Corp., 4.75%,               4,986,806
             7/21/99.................................              
  5,000,000  General Motors Acceptance Corp., 5.03%,      4,995,110
             7/8/99..................................              
  5,000,000  General Motors Acceptance Corp., 4.94%,      4,973,242
             8/9/99..................................              
  5,000,000  General Motors Acceptance Corp., 4.84%,      4,963,700
             8/24/99.................................              


 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
COMMERCIAL PAPER (CONTINUED)                                       
$ 4,700,000  GTE Corp., 4.98%, 7/13/99...............  $  4,692,198
 10,000,000  GTE Corp., 5.01%, 7/14/99...............     9,981,908
  5,000,000  GTE Corp., 5.05%, 7/19/99...............     4,987,375
  5,000,000  H.J. Heinz Co., 4.82%**, 7/22/99........     4,985,941
  5,000,000  H.J. Heinz Co., 5.08%, 8/19/99..........     4,965,428
  5,000,000  McGraw Hill Inc., 4.78%, 7/13/99........     4,992,034
 10,000,000  Michigan Consolidated Gas Co., 5.80%,       10,000,000
             7/1/99..................................              
 10,000,000  Mobil Corp., 5.12%, 7/8/99..............     9,990,044
  5,000,000  Motorola Inc., 5.02%**, 7/29/99.........     4,980,594
 10,000,000  UBS Finance Delaware Inc., 5.25%,            9,998,542
             7/2/99..................................              
                                                       ------------
             TOTAL COMMERCIAL PAPER..................   248,908,853
                                                       ------------
CORPORATE NOTES & BONDS (2.0%):                                    
  5,000,000  Ford Motor Credit Corp., 5.73%,              5,021,410
             2/23/00.................................              
  7,825,000  General Motors Acceptance Corp., 6.15%,      7,843,405
             9/20/99.................................              
                                                       ------------
             TOTAL CORPORATE NOTES & BONDS...........    12,864,815
                                                       ------------
DEMAND NOTES (29.8%):                                              
  4,000,000  Adena Health System, 5.37%*, 7/7/99.....     4,000,000
  8,000,000  American Healthcare Funding L.L.C.,          8,000,000
             5.15%*, 7/7/99 (LOC: LaSalle National                 
             Bank)...................................              
  4,000,000  American Mfg. Co., Inc., Series 1997,        4,000,000
             5.20%*, 7/7/99 (LOC: Mellon Bank).......              
  7,300,000  Arboretum Properties L.L.C., 5.37%*,         7,300,000
             7/7/99 (LOC: Michigan National Bank)....              
  3,570,000  Buckeye Corrugated, Inc., 5.37%*, 7/7/99     3,570,000
             (LOC: Keybank)..........................              
  7,788,000  Capital One Funding Corp., 5.18%*,           7,788,000
             7/7/99 (LOC: Bank One)..................              
  4,019,000  Capital One Funding Corp., 5.18%*,7/7/99     4,019,000
             (LOC: Bank One).........................              
  4,000,000  Chesterwood Village Realty, 5.13%*,          4,000,000
             7/7/99 (LOC: Fifth Third Bank)..........              
  3,100,000  City of Cloquet, Minnesota Taxable           3,100,000
             Industrial Bond, Series 1996B, 5.25%*,                
             7/7/99 (LOC: Credit Suisse).............              
  5,000,000  Elsinore Properities Ltd Partner,            5,000,000
             5.13%*, 7/7/99 (LOC: Fifth Third                      
             Bank)...................................              
  3,920,000  Excel Health Services, Inc., 5.37%*,         3,920,000
             7/7/99..................................              
  4,645,000  First Metro Title Co., 5.13%*, 7/7/99        4,645,000
             (LOC: Michigan National Bank)...........              
  6,565,000  GTB Properties L.L.C., 5.20%*, 7/7/99        6,565,000
             (LOC: Michigan National Bank)...........              
  4,325,000  Harry W. Albright, Jr., 5.15%*,              4,325,000
             7/7/99..................................              
  3,400,000  HWP Co., Ltd. Project, 5.27%*, 7/7/99        3,400,000
             (LOC: National City Bank Cleveland,                   
             Ohio)...................................              
  3,350,000  Idaho Associates L.L.C., 5.20%*, 7/7/99      3,350,000
             (LOC: LaSalle National Bank)............              
  5,010,000  Jackson Tube Service, Inc., 5.37%*,          5,010,000
             7/7/99..................................              
  5,000,000  JW Harris Co., Inc., 5.13%*, 7/7/99          5,000,000
             (LOC: Fifth Third Bank).................              
  4,445,000  Labelle Capital Funding L.L.C., 5.15%*,      4,445,000
             7/7/99 (LOC: First of America Bank -                  
             Michigan)...............................              

CONTINUED 
86

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Kent Funds                                
         MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
DEMAND NOTES (CONTINUED)                                           
$ 1,500,000  Laird's Auto Glass & Trim, Inc., 5.35%*,  $  1,500,000
             7/7/99 (LOC: Michigan National Bank)....              
  3,920,000  Macroe Properties, Inc., 5.15%*, 7/7/99      3,920,000
             (LOC: Huntington Bank)..................              
  5,000,000  Nationsbank Corp., 4.96%*, 7/1/99.......     5,000,000
  6,000,000  Nationsbank Corp., 5.38%*, 11/18/99.....     6,004,238
  2,500,000  Neenah Wisc. Indl Dev, 5.16%*, 7/7/99        2,500,000
             (LOC: Banc One Capital).................              
  8,220,000  Ordeal Properties L.L.C., 5.37%*, 7/7/99     8,220,000
             (LOC: Keybank)..........................              
  2,420,000  Patt's Enterprises L.L.C., 5.15%*,           2,420,000
             7/7/99 (LOC: Huntington National                      
             Bank)...................................              
  2,250,000  Pittsburgh Technical Institute, 5.27%*,      2,250,000
             7/7/99 (LOC: National City Bank)........              
  8,700,000  Polk County Florida, 5.29%*, 7/7/99          8,700,000
             (LOC: Nationsbank)......................              
  8,150,000  PRD Finance L.L.C., 5.24%*, 7/7/99 (LOC:     8,150,000
             First of America Bank - Michigan).......              
  5,940,000  Reynolds Road Fitness Center, Inc.,          5,940,000
             5.13%*, 7/7/99 (LOC: Fifth Third                      
             Bank)...................................              
  1,895,000  Riverview Medical Office Building,           1,895,000
             5.27%*, 7/7/99 (LOC: National City                    
             Bank)...................................              
  4,000,000  Royal Town Center L.L.C. Project,            4,000,000
             5.37%*, 7/7/99 (LOC: Comerica Bank).....              
  2,595,000  Rumpf Development Ltd., 5.37%*, 7/7/99       2,595,000
             (LOC: Keybank)..........................              
  6,740,000  Shelburne Realty And Troy Realty,            6,740,000
             5.27%*, 7/7/99 (LOC: National City                    
             Bank)...................................              
  5,000,000  Sheperd Capital L.L.C., 5.15%*, 7/7/99       5,000,000
             (LOC: Comerica Bank)....................              
  1,900,000  South Bend MAC, L.P., 5.15%*, 7/7/99         1,900,000
             (LOC: LaSalle National Bank)............              
    975,000  The Economic Development Corp. of the          975,000
             County of Marquette, Pioneer                          
             Laboratories, Inc. Project, 5.20%*,                   
             7/7/99 (LOC: NBD Bank)..................              
  2,500,000  Town Of Caledonia, Wisconsin, 5.20%*,        2,500,000
             7/7/99 (LOC: Banc One Capital)..........              
  4,105,000  Tri-O Development L.L.C., 5.27%*, 7/7/99     4,105,000
             (LOC: National City Bank)...............              
  7,300,000  Watson Clinic L.L.P., 5.29%*, 7/7/99         7,300,000
             (LOC: Nationsbank)......................              
  2,790,000  White Mountain Imaging, 5.37%*, 7/7/99       2,790,000
             (LOC: Keybank)..........................              
  5,275,000  Zeigler Realty L.L.C, 5.15%*, 7/1/99         5,275,000
             (LOC: First of America Bank-Michigan)...              
                                                       ------------
             TOTAL DEMAND NOTES......................   191,116,238
                                                       ------------
FUNDING AGREEMENTS (7.0%):                                         
 15,000,000  Allmerica Funding Agreement, 5.12%*,        15,000,000
             9/1/99..................................              
 10,000,000  Allstate Financial Corp., 5.07%*, 7/1/99    10,000,000
             (b).....................................              
 20,000,000  General American Life Insurance Co.,        20,000,000
             5.12%*, 7/1/99 (b)......................              
                                                       ------------
             TOTAL FUNDING AGREEMENTS................    45,000,000
                                                       ------------


 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (0.2%):                                            
$ 1,300,000  Michigan State Strategic Fund, Phipps     $  1,300,000
             Emmett Assoc, 5.20%*, 7/7/99, (LOC:                   
             National Australia Bank)................              
             TOTAL MUNICIPAL BONDS...................     1,300,000
                                                       ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (1.4%):                         
  4,000,000  Federal Home Loan Bank, 5.01%, 2/3/00...     4,000,000
  5,046,000  Freddie Mac, 4.90%, 9/10/99.............     4,997,236
                                                       ------------
             TOTAL U.S. GOVERNMENT AGENCY                          
             OBLIGATIONS.............................     8,997,236
                                                       ------------
YANKEE CERTIFICATES OF DEPOSIT (10.3%):                            
  5,000,000  Bank Of Nova Scotia, 4.90%, 1/26/00.....     5,000,000
  5,000,000  Bank Of Nova Scotia, 5.19%, 2/28/00.....     5,001,486
  5,000,000  Bank Of Nova Scotia, 5.17%, 2/28/00.....     4,999,202
  5,000,000  Bayerische Hypo-Und Vereinsbank Ag,          4,998,832
             5.01%, 2/7/00...........................              
  5,000,000  Canadian Imperial Bank Of Canada, 5.01%,     4,999,722
             1/27/00.................................              
  6,000,000  Canadian Imperial Bank Of Commerce,          6,049,715
             6.48%, 1/24/00..........................              
  5,000,000  Canadian Imperial Bank Of Commerce,          4,999,359
             5.20%, 2/29/00..........................              
  5,000,000  Landesbank Hessen, 4.86%, 10/29/99......     5,000,161
  5,000,000  Landesbank Hessen Thuringen                  4,999,840
             Gironzentale, 5.22%, 2/29/00............              
  5,000,000  Landesbank Hessen-Thuringen, 5.19%,          4,996,070
             2/29/00.................................              
  5,000,000  National Westminster Bank, 4.98%,            5,001,254
             1/7/00..................................              
  5,000,000  Rabobank Nederland, 5.03%, 1/13/00......     4,999,482
  5,000,000  Toronto Dominion, 5.06%, 2/10/00........     4,999,113
                                                       ------------
             TOTAL YANKEE CERTIFICATES OF DEPOSIT....    66,044,236
                                                       ------------
INVESTMENT COMPANIES (0.9%):                                       
  1,983,375  Dreyfus Cash Management Money Market         1,983,375
             Fund....................................              
  3,629,695  Federated Prime Value Obligations Money      3,629,695
             Market Fund.............................              
TOTAL INVESTMENT COMPANIES...........................     5,613,070
                                                       ------------
TOTAL INVESTMENTS (AMORTIZED COST $640,939,795) (a)                
-- 99.8%.............................................   640,939,795
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2%........     1,070,494
                                                       ------------
TOTAL NET ASSETS -- 100.0%...........................  $642,010,289
                                                       ------------
                                                       ------------

---------------                                                                 

(a)  Cost for federal income tax and financial reporting purposes is the same.  
(b)  Illiquid security.                                                         
*  Variable rate security. Rate presented represents rate in effect at June 
     30, 1999. Maturity date reflects effective maturity for Rule 2a-7 purposes.
**  Effective yield at purchase.                                              
LOC Letter of Credit                                                            
PLC Public Limited Company                                                      

SEE NOTES TO FINANCIAL STATEMENTS.
87

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Kent Funds                                
                            MICHIGAN MUNICIPAL MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (93.2%):                                           
             MICHIGAN (89.0%):                                     
$ 1,090,000  Ann Arbor Public Schools, 7.00%, 5/1/00,  $  1,123,684
             Q-Sblf..................................              
  5,000,000  City Of Dearborn Economic Development        5,000,000
             Corp., Henry Ford Village, 3.85%*,                    
             7/1/99, (LOC: Comerica).................              
    910,000  Clinton Township Economic Development          910,000
             Corp., Pointe                                         
             Village Square, (AMT), 3.40%*, 8/1/99,                
             (LOC: National City)....................              
  2,100,000  Delta County Economic Development Corp.,     2,100,000
             Environmental Improvement Revenue, Mead               
             Escanaba Paper Co., Series D, 3.45%*,                 
             7/1/99, (LOC: Credit Suisse)............              
    500,000  Delta County Economic Development Corp.,       500,000
             Environmental Improvement Revenue, Mead               
             Escanaba Paper Co., Series F, 3.45%*,                 
             7/1/99, (LOC: Bank of Nova Scotia)......              
  7,700,000  Detroit Michigan City School District,       7,700,000
             4.50%, 7/1/99...........................              
    500,000  Detroit Michigan Downtown Development          500,000
             Authority Tax Increment, Project A,                   
             3.60%, 7/1/99, (Insured by MBIA)........              
  7,530,000  Detroit Michigan Economic Development        7,530,000
             Corp, 3.80%*, 7/1/99, (LOC: Bank Of                   
             America)................................              
  3,730,000  Detroit Michigan Economic Development        3,730,000
             Corp., 3.80%*, 7/1/99, (LOC: Bank of                  
             America)................................              
  1,000,000  Detroit Michigan School District, 4.00%,     1,007,112
             6/1/00..................................              
  1,300,000  Detroit Michigan Sewage Disposal, 7.13%,     1,319,500
             7/1/99, Prerefunded 7/1/99 @ 101.50,                  
             (Insured by MBIA).......................              
  1,460,000  Detroit Public Schools, 2.90%, 11/1/99,      1,460,000
             (Insured by MBIA).......................              
    365,000  Farmington Hills Michigan Education,           365,000
             Marketing Displays, (AMT), 3.25%*,                    
             9/1/99, (LOC: Comerica Bank)............              
  7,000,000  Genesee County Economic Development          7,000,000
             Corp., Rue Properties, (AMT), 3.95%*,                 
             7/1/99, (LOC: Nationsbank)..............              
  1,750,000  Jackson Public Schools State Aid Notes,      1,750,784
             3.30%, 8/25/99, (LOC: Comerica).........              
  3,000,000  Kalamazoo Michigan City School District,     3,002,128
             3.75%, 9/16/99, (LOC: National City)....              
  5,000,000  Kalamazoo Michigan Tax Anticipation          5,010,250
             Notes, 3.50%, 12/1/99...................              
  1,000,000  Kent County Hospital Authority,              1,041,589
             Butterworth Hospital, 7.25%, 1/15/12,                 
             Prerefunded 1/15/00 @ 102...............              
  1,875,000  Leelanau County Economic Development         1,875,000
             Corp., American Mutual Insurance Co.,                 
             3.40%*, 12/15/99, (LOC: National City)..              


 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 4,290,000  Lenawee County Economic Development       $  4,290,000
             Corp., Rima Mfg. Co. Project, (AMT),                  
             3.75%*, 7/7/99, (LOC: Keybank)..........              
    390,000  Livonia County Economic Development            390,000
             Corp., American Community Mutual                      
             Insurance Co., 3.50%*, 11/15/99, (LOC:                
             National City)..........................              
  1,400,000  Marquette County Economic Development        1,400,000
             Corp., Pioneer Labs, Inc., (AMT),                     
             3.90%*, 7/7/99, (LOC: Banc One).........              
  1,800,000  Meridian Michigan Economic Development       1,800,000
             Corp., Hannah Technology, 3.35%*,                     
             7/7/99, (LOC: Comerica Bank)............              
  2,000,000  Michigan Building Authority Detroit          2,020,938
             Prison, 7.25%, 10/1/08, Prerefunded                   
             10/1/99 @ 100...........................              
  2,520,000  Michigan Municipal Bond Authority,           2,523,416
             4.50%, 8/27/99, (LOC: Comerica).........              
  6,000,000  Michigan Municipal Bond Authority,           6,006,053
             4.25%, 8/27/99, (LOC: Bank of Nova                    
             Scotia).................................              
 10,059,309  Michigan Municipal Bond Authority,          10,059,310
             4.00%, 6/30/00, (LOC: Morgan Guaranty                 
             Trust)..................................              
  8,000,000  Michigan Municipal Bond Authority,           8,019,642
             School Loan, 3.50%, 12/1/99.............              
  3,500,000  Michigan Municipal Bond Authority,           3,500,083
             Series B-1, 4.50%, 7/2/99...............              
  3,500,000  Michigan Municipal Bond Authority,           3,504,497
             Series D-1, 4.25%, 8/27/99..............              
  1,000,000  Michigan State Building Authority,           1,002,012
             Series 1, 4.20%, 10/1/99, (Insured by                 
             AMBAC)..................................              
  6,000,000  Michigan State Housing Development           6,000,000
             Authority Multifamily Series A, 3.35%,                
             8/25/99, (LOC: Helaba)..................              
  3,000,000  Michigan State Housing Development           3,000,000
             Authority, Canton Club East, (AMT),                   
             3.60%*, 7/7/99, (LOC: Keybank)..........              
  1,650,000  Michigan State Housing Development           1,650,000
             Authority, Laurel Valley, 3.50%*,                     
             7/7/99, (LOC: Wachovia).................              
  1,500,000  Michigan State Housing Development           1,500,000
             Authority, Limited Obligation Revenue,                
             Pine Ridge, 3.50%*, 7/7/99, (LOC:                     
             Wachovia)...............................              
  1,190,000  Michigan State Housing Development           1,190,000
             Authority, Series B, (AMT), 3.00%,                    
             12/1/99.................................              
  1,300,000  Michigan State Housing Development           1,300,000
             Authority, Woodland Meadows, (AMT),                   
             3.60%*, 7/7/99, (LOC: Union Bank of                   
             Switzerland)............................              
  3,300,000  Michigan State Job Development               3,300,000
             Authority, BASF Wyandotte, 3.70%*,                    
             7/7/99, (LOC: Bayerische Landesbank)....              

CONTINUED 
88

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Kent Funds                                
                            MICHIGAN MUNICIPAL MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 1,000,000  Michigan State Strategic Fund, AACOA      $  1,000,000
             Extrusions, Inc., (AMT), 3.85%*, 7/7/99,              
             (LOC: Banc One).........................              
  2,510,000  Michigan State Strategic Fund,               2,510,000
             Atmosphere Annealing, (AMT), 3.80%*,                  
             7/7/99, (LOC: National City)............              
  1,160,000  Michigan State Strategic Fund, B.K.          1,160,000
             Hardwoods, (AMT), 3.70%*, 7/7/99, (LOC:               
             National Australia).....................              
  4,035,000  Michigan State Strategic Fund, Banks         4,035,000
             Hardwoods, Inc., (AMT), 3.72%*, 7/7/99,               
             (LOC: Banc One).........................              
  1,900,000  Michigan State Strategic Fund, Besser        1,900,000
             International Sales Inc. Project, (AMT),              
             3.85%*, 7/7/99, (LOC: Banc One).........              
  2,900,000  Michigan State Strategic Fund, Biewer Of     2,900,000
             Lansing, 3.85%*, 7/7/99, (LOC: National               
             Australia)..............................              
  3,135,000  Michigan State Strategic Fund,               3,135,000
             Bloomfield Valley Properties, 3.20%*,                 
             7/1/99, (LOC: Charter One)..............              
  3,700,000  Michigan State Strategic Fund, Brazing       3,700,000
             Concepts Co., (AMT), 3.85%*, 7/7/99,                  
             (LOC: Banc One).........................              
  1,275,000  Michigan State Strategic Fund, C-1,          1,275,000
             (AMT), 3.90%*, 7/7/99, (LOC: Comerica                 
             Bank)...................................              
  1,000,000  Michigan State Strategic Fund, C-Tec         1,000,000
             Inc. Project, (AMT), 3.80%*, 7/7/99,                  
             (LOC: Suntrust Bank)....................              
  2,300,000  Michigan State Strategic Fund, Consumers     2,300,000
             Power, 3.40%*, 7/7/99, (LOC: Union Bank               
             of Switzerland).........................              
  2,375,000  Michigan State Strategic Fund,               2,375,000
             Cyberplast, (AMT), 3.60%*, 7/7/99, (LOC:              
             Banc One)...............................              
  4,855,000  Michigan State Strategic Fund,               4,855,000
             Dawnbreakers LLC, (AMT), 3.80%*, 7/7/99,              
             (LOC: National City)....................              
  2,400,000  Michigan State Strategic Fund, Dixie Cut     2,400,000
             Stone Project, 3.90%*, 7/7/99, (LOC:                  
             National Australia).....................              
  2,500,000  Michigan State Strategic Fund, Donnelly      2,500,000
             Corp., Series B, (AMT), 3.40%*, 10/1/99,              
             (LOC: Dresdner Bank)....................              
  2,600,000  Michigan State Strategic Fund, Dow           2,600,000
             Chemical Co. Project, (AMT) 3.60%*,                   
             7/1/99..................................              
  2,000,000  Michigan State Strategic Fund, Dow           2,000,000
             Chemical Co. Project, 3.45%*, 7/1/99....              
  3,000,000  Michigan State Strategic Fund, E & L         3,000,000
             Meat Project, 3.90%*, 7/7/99, (LOC:                   
             National Australia).....................              
  1,170,000  Michigan State Strategic Fund,               1,170,000
             Enviromental Powder Co., (AMT), 3.70%*,               
             7/7/99, (LOC: National Australia).......              

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 1,000,000  Michigan State Strategic Fund, Equad      $  1,000,000
             Project, (AMT), 3.80%*, 7/7/99, (LOC:                 
             National City)..........................              
    750,000  Michigan State Strategic Fund, Focus           750,000
             Hope Group, 3.65%, 10/1/99, (LOC:                     
             National Australia).....................              
  1,405,000  Michigan State Strategic Fund, Gollin        1,405,000
             Block & Supply Co., (AMT), 3.90%*,                    
             7/7/99, (LOC: Northern Trust)...........              
  1,510,000  Michigan State Strategic Fund, Hamilton      1,510,000
             Industrial Products, Inc. Project,                    
             (AMT), 3.70%*, 7/7/99, (LOC: National                 
             Australia)..............................              
  1,715,000  Michigan State Strategic Fund, I.V.C.        1,715,000
             Industrial Coatings, Inc., (AMT),                     
             3.72%*, 7/7/99, (LOC: Banc One).........              
  1,700,000  Michigan State Strategic Fund,               1,700,000
             Industrial Development, Kinder Care,                  
             3.65%*, 7/7/99, (LOC: Chase Manhattan                 
             Bank)...................................              
  2,300,000  Michigan State Strategic Fund, Jedco         2,300,000
             Inc., 3.70%*, 7/1/99, (LOC: Banc One)...              
    555,000  Michigan State Strategic Fund, Kazoo,          555,000
             Inc. Project, (AMT), 3.35%*, 9/15/99,                 
             (LOC: National City)....................              
  2,845,000  Michigan State Strategic Fund, Kerkstra      2,845,000
             Precast Project (AMT), 3.70%*, 7/1/99,                
             (LOC: Huntington Bank)..................              
  1,380,000  Michigan State Strategic Fund, Kerkstra,     1,380,000
             (AMT), 3.70%*, 7/7/99, (LOC: Huntington               
             Bank)...................................              
  1,400,000  Michigan State Strategic Fund,               1,400,000
             Kundinger, 3.85%*, 7/7/99, (LOC: Banc                 
             One)....................................              
  1,320,000  Michigan State Strategic Fund, Limited       1,320,000
             Obligation Revenue, John A. Biewer Co.                
             Project, (AMT), 3.35%*, 9/1/99, (LOC:                 
             National Australia).....................              
  2,500,000  Michigan State Strategic Fund, Limited       2,500,000
             Obligation Revenue, Cincinnati                        
             Millacron, (AMT), 3.75*%, 7/7/99, (LOC:               
             PNC                                                   
             Bank)...................................              
    945,000  Michigan State Strategic Fund, Limited         945,000
             Obligation Revenue, Dickinson Press,                  
             Inc. Project, (AMT), 3.70%*, 7/7/99,                  
             (LOC: Huntington Bank)..................              
  2,500,000  Michigan State Strategic Fund, Limited       2,500,000
             Obligation Revenue, Donnelly Corp.,                   
             (AMT), 3.75%*, 7/7/99, (LOC: Dresdner                 
             Bank)...................................              
  4,615,000  Michigan State Strategic Fund, Limited       4,615,000
             Obligation Revenue, JB Laboratories,                  
             Inc., (AMT), 3.70%*, 7/7/99, (LOC:                    
             Huntington Bank)........................              
    695,000  Michigan State Strategic Fund, Limited         695,000
             Obligation Revenue, Kay Screen Printing,              
             (AMT), 3.60%*, 7/7/99, (LOC: Comerica                 
             Bank)...................................              

CONTINUED 
89

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Kent Funds                                
                            MICHIGAN MUNICIPAL MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 1,025,000  Michigan State Strategic Fund, Limited    $  1,025,000
             Obligation Revenue, Midbrook Products,                
             Inc. Project, (AMT), 3.70%*, 7/7/99,                  
             (LOC: Comerica Bank)....................              
    675,000  Michigan State Strategic Fund, Limited         675,000
             Obligation Revenue, Patten Monument,                  
             (AMT), 3.70%, 7/7/99, (LOC: Huntington                
             Bank)...................................              
  1,100,000  Michigan State Strategic Fund, Limited       1,100,000
             Obligation Revenue, Pilot Industries,                 
             (AMT), 4.00%*, 7/7/99, (LOC: Banc One)..              
    850,000  Michigan State Strategic Fund, Limited         850,000
             Obligation Revenue, Stephenson Land,                  
             (AMT), 3.70%*, 7/7/99, (LOC: Comerica                 
             Bank)...................................              
    500,000  Michigan State Strategic Fund, Limited         500,000
             Obligation Revenue, Tawas Bay                         
             Associates, (AMT), 3.85%, 12/1/99, (LOC:              
             National City)..........................              
    430,000  Michigan State Strategic Fund, Limited         430,000
             Obligation Revenue, Tom Miller, Inc.,                 
             (AMT), 3.65%*, 7/7/99, (LOC: First                    
             Union)..................................              
  2,010,000  Michigan State Strategic Fund, Limited       2,010,000
             Obligation Revenue, Wayne Disposal                    
             Project, (AMT), 3.60%*, 7/7/99, (LOC:                 
             Comerica)...............................              
  2,000,000  Michigan State Strategic Fund, Ltd.,         2,000,000
             5.65%*, 7/1/99..........................              
  4,000,000  Michigan State Strategic Fund,               4,000,000
             Middleville Tool & Die Project, (AMT),                
             3.85%*, 7/7/99, (LOC: Banc One).........              
  3,000,000  Michigan State Strategic Fund, Midwest       3,000,000
             Kellering Co., 3.80%*, 7/7/99, (LOC:                  
             Banc One)...............................              
  1,490,000  Michigan State Strategic Fund, Molmec,       1,490,000
             Inc., (AMT), 3.80%*, 7/7/99, (LOC:                    
             Comerica Bank)..........................              
  3,000,000  Michigan State Strategic Fund, Nicholas      3,000,000
             Plastics Projects, 3.70%*, 7/7/99, (LOC:              
             National City)..........................              
    950,000  Michigan State Strategic Fund, Northern        950,000
             Pure Ice Co. Project, (AMT), 3.90%*,                  
             7/7/99, (LOC: National Australia).......              
  1,000,000  Michigan State Strategic Fund, NSF           1,000,000
             International Project, Series 1997B,                  
             3.90%*, 7/7/99, (LOC: National City)....              
  1,615,000  Michigan State Strategic Fund, Omni          1,615,000
             Technical Services, Inc., (AMT), 3.80%*,              
             7/7/99, (LOC: National City)............              
    865,000  Michigan State Strategic Fund, Plascore,       865,000
             Inc., (AMT), 3.70%*, 7/7/99, (LOC:                    
             Huntington Bank)........................              
  3,950,000  Michigan State Strategic Fund, Rochester     3,950,000
             Gear Project, (AMT), 3.75%*, 7/7/99,                  
             (LOC: Comerica Bank)....................              

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 2,200,000  Michigan State Strategic Fund, SFI,       $  2,200,000
             3.60%*, 7/7/99, (LOC: ABM/Amro).........              
  4,500,000  Michigan State Strategic Fund, Stegner       4,500,000
             East, 4.05%*, 7/7/99, (LOC: Comerica)...              
  2,040,000  Michigan State Strategic Fund, Sunrise       2,040,000
             Windows Ltd. Project, (AMT), 3.75%*,                  
             7/7/99 (LOC: Keybank)...................              
  1,000,000  Michigan State Strategic Fund, Thompson      1,000,000
             Family Holdings, (AMT), 3.80%*, 7/7/99,               
             (LOC: National City)....................              
  5,000,000  Michigan State Strategic Fund, Van Andel     5,000,000
             Research Project, 3.55%*, 7/7/99, (LOC:               
             National Australia).....................              
  1,000,000  Michigan State Strategic Fund, Wright-       1,000,000
             Technology, Inc., Series 1997, (AMT),                 
             3.80%*, 7/7/99, (LOC: National City)....              
  2,000,000  Michigan State Strategic Fund, Xibitz,       2,000,000
             Inc. Project, (AMT), 3.85%*, 7/7/99,                  
             (LOC: Banc One).........................              
  1,000,000  Michigan State Trunk Line, 4.70%,            1,006,051
             11/15/99, (Insured by FGIC).............              
  1,000,000  Michigan State Trunk Line, 7.00%,            1,024,757
             8/15/99, Prerefunded 8/15/99 @ 102......              
  2,000,000  Michigan State Underground Storage, Tank     2,028,804
             Financial Assurance Authority, Series I,              
             5.00%, 5/1/00 (Insured by AMBAC)........              
  6,700,000  Michigan State Underground Tank Storage,     6,700,000
             3.25%, 9/15/99, (LOC: CIBC).............              
  5,500,000  Midland County Economic Development          5,500,000
             Corp., Limited Obligation Revenue, Dow                
             Chemical Project, Series A, (AMT),                    
             3.80%*, 7/1/99..........................              
  1,000,000  Midland County, Economic Development         1,000,000
             Corp., Dow Chemical, Series B, 3.75%*,                
             7/1/99..................................              
    750,000  Municipal Bond Authority, Revenue,             750,000
             3.05%, 11/1/99, (Insured by AMBAC)......              
  3,000,000  Oakland County Economic Development          3,000,000
             Corp., Cranbrook Community, 3.50%*,                   
             7/7/99, (LOC: Comerica Bank)............              
    675,000  Oakland County Economic Development            675,000
             Corp., Orchard Maple Project, 3.90%*,                 
             11/15/99, (LOC: National City)..........              
    675,000  Oakland County Michigan Building               677,007
             Authority, West Wing Extension, 5.10%,                
             9/1/99..................................              
    280,000  Rochester Hills Economic Development           280,000
             Corp., BRG Assoc., 3.40%*, 12/1/99,                   
             (LOC: Comerica Bank)....................              
  1,200,000  Scio Township Economic Development           1,200,000
             Corp., Daycroft School Project, 3.90%*,               
             7/7/99, (LOC: National Australia).......              
  1,070,000  St. Clair Shores, Michigan Education,        1,070,000
             Borman's, Inc. Project, (AMT), 3.30%*,                
             10/15/99, (LOC: National Australia).....              

CONTINUED 
90

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Kent Funds                                
                            MICHIGAN MUNICIPAL MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
   (CONTINUED)
                 JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
MUNICIPAL BONDS (CONTINUED)                                        

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                   
$ 7,000,000  University of Michigan Hospital Revenue,  $  7,000,000
             Series A, 3.45%*, 7/1/99................              
  1,150,000  University of Michigan Hospital Revenue,     1,150,000
             Series A, 3.45%*, 7/1/99................              
  2,000,000  University of Michigan University              900,000
             Revenue, 3.45%*, 7/1/99.................              
    900,000  University of Michigan, Medical Service      2,000,000
             Plan, Series A, 3.45%*, 7/1/99..........              
  1,610,000  Warren Economic Development Corp., CMX       1,610,000
             Corp. Project, (AMT), 3.35%*, 9/15/99,                
             (LOC: National City)....................              
  1,120,000  Warren Economic Development Corp., Cross     1,120,000
             Country Inn, (AMT), 3.40%, 11/1/99,                   
             (LOC: Huntington Bank)..................              
    525,000  Warren Economic Development Corp.,             525,000
             Limited Obligation Revenue, Elias                     
             Brothers, (AMT), 3.55%, 12/1/99, (LOC:                
             AMN/Amro)...............................              
  4,410,000  Wayne County Airport, Detroit Airport,       4,410,000
             Series A, (AMT), 3.45%*, 7/7/99, (LOC:                
             Baerische Landesbank)...................              
  1,150,000  Ypsilanti School District, 4.50%, 5/1/00     1,161,902
             (Insured by FGIC).......................              
                                                       ------------
                                                        281,319,519
                                                       ------------
             PUERTO RICO (4.2%):                                   
  4,695,000  Puerto Rico Industrial Medical &             4,695,000
             Environmental Pollution Control,                      
             Facilities Financing Authority, Abbott                
             Labs, 2.90%*, 9/1/99....................              
  4,200,000  Puerto Rico Industrial Medical &             4,200,000
             Environmental Pollution Control,                      
             Facilities Financing Authority, Merck,                
             2.90%*, 12/1/99.........................              
  4,250,000  Puerto Rico Industrial Medical &             4,250,200
             Environmental Pollution Control,                      
             Facilities Financing Authority, Reynolds              
             Metal, 3.60%*, 9/1/99, (LOC:                          
             ABN/Amro)...............................              
                                                       ------------
                                                         13,145,200
                                                       ------------
TOTAL MUNICIPAL BONDS (AMORTIZED COST $294,464,719)..   294,464,719
                                                       ------------

TAX FREE COMMERCIAL PAPER (9.0%):                                  
             MICHIGAN (9.0%):                                      
  9,600,000  Delta County Economic Development Corp.,     9,600,000
             Environmental Improvement Revenue, Mead               
             Escanaba Paper Co., Series A, 3.10%*,                 
             7/7/99, (LOC: Morgan Guaranty)..........              

 PRINCIPAL                   SECURITY                   AMORTIZED  
  AMOUNT                   DESCRIPTION                     COST    
-----------  ----------------------------------------  ------------
                                                                   
TAX FREE COMMERCIAL PAPER (CONTINUED)                              

MICHIGAN (CONTINUED)                                  

                                                                [Download Table]
                                                                    
$ 5,810,000  Delta County Economic Development Corp.,  $  5,810,000 
             Environmental Improvement Revenue, Mead                
             Escanaba Paper Co., Series B, 3.00%*,                  
             7/12/99, (LOC: Union Bank of                           
             Switzerland)............................               
  2,490,000  Delta County Economic Development Corp.,     2,490,000 
             Environmental Improvement Revenue, Mead                
             Escanaba Paper Co., Series B, 3.00%*,                  
             7/7/99, (LOC: Union Bank of                            
             Switzerland)............................               
  1,530,000  Detroit, Michigan, Waterfront                1,530,000 
             Reclamation, 3.75%, 7/7/99, (LOC:                      
             LaSalle Bank)...........................               
  1,500,000  Michigan State Builders, 3.15%,              1,500,000 
             8/5/99..................................               
  7,500,000  Michigan State Builders, 3.15%,              7,500,000 
             8/15/99.................................               
                                                       ------------ 
                                                         28,430,000 
                                                       ------------ 
             TOTAL TAX FREE COMMERCIAL PAPER                        
             (AMORTIZED COST $28,430,000)............    28,430,000 
                                                       ------------ 

INVESTMENT COMPANIES (0.5%):                                        
    109,625  Dreyfus Tax Exempt Money Market Fund....       109,625 
                                                       ------------ 
  1,333,847  Federated Tax Exempt Money Market            1,333,847 
             Fund....................................               
                                                       ------------ 
             TOTAL INVESTMENT COMPANIES (AMORTIZED                  
             COST $1,443,472)........................     1,443,472 
                                                       ------------ 
TOTAL INVESTMENTS                                                   
(AMORTIZED COST $324,338,191) (a) -- 102.7%..........   324,338,191 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (2.7)%......    (8,668,614)
                                                       ------------ 
TOTAL NET ASSETS -- 100.0%...........................  $315,669,577 
                                                       ------------ 
                                                       ------------ 

---------------                                                                 

(a)  Cost for federal income tax and financial reporting purposes is the same.  
*  Variable rate security. Rate presented represents rate in effect at June 
30, 1999. Maturity date reflects effective maturity for               
Rule 2a-7 purposes.                                                   
AMBAC - AMBAC Indemnity Corp.                                                   
AMT - Alternative Minimum Tax Paper                                             
FGIC - Financial Guaranty Insurance Corp.                                       
FOA - First of America                                                          
FSA - Financial Security Assurance                                              
LOC - Letter of Credit                                                          
MBIA - Municipal Bond Insurance Association                                     
QSBLF - Qualified School Board Lending Fund                                     
STP - Short Term Put                                                            

SEE NOTES TO FINANCIAL STATEMENTS.
91

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Kent Funds                                
  KENT FUNDS
                    GOVERNMENT MONEY MARKET FUND
                         SCHEDULE OF PORTFOLIO INVESTMENTS
     JUNE 30, 1999
   (UNAUDITED)

                                                                [Download Table]

PRINCIPAL                   SECURITY                   AMORTIZED   
  AMOUNT                  DESCRIPTION                     COST     
----------  ----------------------------------------  ------------ 
                                                                   
U.S. GOVERNMENT AGENCY OBLIGATIONS (76.8%):                        
            FANNIE MAE (13.0%):                                    
$3,000,000  4.87%**, 8/5/99.........................  $  2,985,942 
 5,000,000  4.80%**, 8/11/99........................     4,973,009 
 5,000,000  4.80%**, 8/26/99........................     4,963,211 
 5,000,000  4.93%**, 11/19/99.......................     4,905,804 
 4,000,000  4.83%, 1/11/00..........................     3,998,584 
 4,000,000  5.34%**, 1/18/00........................     3,884,313 
                                                      ------------ 
                                                        25,710,863 
                                                      ------------ 
            FEDERAL FARM CREDIT BANK (1.8%):                       
 3,483,000  4.74%**, 7/6/99.........................     3,480,760 
                                                      ------------ 
            FEDERAL HOME LOAN BANK (17.7%):                        
 4,000,000  4.75%**, 7/7/99.........................     3,996,907 
 5,000,000  5.33%*, 7/7/99..........................     4,999,723 
 5,000,000  4.86%**, 7/16/99........................     4,989,917 
 4,155,000  4.94%**, 7/21/99........................     4,143,643 
 4,000,000  4.94%, 10/27/99.........................     4,000,000 
 4,000,000  5.36%*, 7/7/99..........................     4,000,391 
 4,000,000  5.15%, 3/17/00..........................     4,000,000 
 4,750,000  5.08%, 4/28/00..........................     4,750,566 
                                                      ------------ 
                                                        34,881,147 
                                                      ------------ 
            FREDDIE MAC (44.3%):                                   
 2,000,000  4.76%, 7/1/99...........................     2,000,000 
 1,657,000  5.01%**, 7/2/99.........................     1,656,779 
 1,611,000  4.81%**, 7/6/99.........................     1,609,937 
 5,000,000  4.77%**, 7/9/99.........................     4,994,767 
 4,000,000  4.82%**, 7/9/99.........................     3,995,778 
 2,245,000  4.80%**, 7/12/99........................     2,241,728 
 6,270,000  4.85%**, 7/13/99........................     6,259,917 
15,461,000  4.80%**, 7/14/99........................    15,434,440 
 5,000,000  4.84%**, 7/19/99........................     4,987,975 
 5,000,000  4.79%**, 8/2/99.........................     4,978,978 
 5,947,000  4.98%**, 8/9/99.........................     5,916,527 
 5,000,000  4.86%**, 8/19/99........................     4,967,367 
 5,000,000  4.84%**, 8/20/99........................     4,967,222 
 2,318,000  4.93%**, 9/9/99.........................     2,296,816 
 5,000,000  5.02%**, 9/15/99........................     4,947,750 
 5,000,000  5.09%**, 9/23/99........................     4,941,433 
 6,195,000  4.95%**, 10/8/99........................     6,114,759 
 5,000,000  5.28%**, 12/2/99........................     4,889,633 
                                                      ------------ 
                                                        87,201,806 
                                                      ------------ 
            TOTAL U.S. GOVERNMENT AGENCY                           
            OBLIGATIONS.............................   151,274,576 
                                                      ------------ 


PRINCIPAL                   SECURITY                   AMORTIZED   
  AMOUNT                  DESCRIPTION                     COST     
----------  ----------------------------------------  ------------ 
                                                                   

REPURCHASE AGREEMENTS (19.3%):                                     
$16,000,000 Donaldson, Lufkin & Jenrette Capital      $ 16,000,000 
            Markets, 4.90%, dated 6/30/99, due                     
            7/1/99 with a maturity value of                        
            $16,002,178 (collateralized by                         
            $16,525,000 DHLB, 5.25%, 4/25/02, market               
            value $16,320,834)......................               
 3,000,000  Donaldson, Lufkin & Jenrette Capital         3,000,000 
            Markets, 4.90%, dated 6/30/99, due                     
            7/1/99 with a maturity value of                        
            $3,000,408 (collateralized by $2,960,000               
            DHLB, 8.60%, 8/25/99, market value                     
            $2,973,974).............................               
19,000,000  Morgan Stanley & Co., Inc., 4.90%, dated    19,000,000 
            6/30/99, due 7/1/99 with a maturity                    
            value of $19,002,586 (collateralized by                
            $19,450,000, 4.90%**, 7/23/99, market                  
            value $18,999,999)......................               
                                                      ------------ 
            TOTAL REPURCHASE AGREEMENTS.............    38,000,000 
                                                      ------------ 

INVESTMENT COMPANIES (4.1%):                                       
 8,120,557  Federated Treasury Money Market.........     8,120,557 
                                                      ------------ 
            TOTAL INVESTMENT COMPANIES..............     8,120,557 
                                                      ------------ 
TOTAL INVESTMENTS (AMORTIZED COST $197,395,133)(a)                 
-- 100.2%...........................................   197,395,133 
                                                      ------------ 
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.2)%.....      (309,080)
                                                      ------------ 
TOTAL NET ASSETS -- 100.0%..........................  $197,086,053 
                                                      ------------ 
                                                      ------------ 

---------------                                                                 

(a)  Cost for federal income tax and financial reporting purposes is the same.  
*  Variable rate security. Rate presented represents rate in effect at June 
     30, 1999. Maturity date reflects effective maturity for Rule 2a-7 purposes.
**  Effective yield at purchase.                                              

SEE NOTES TO FINANCIAL STATEMENTS.
92

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Kent Funds                                

                        STATEMENTS OF ASSETS AND LIABILITIES
             JUNE 30, 1999 (UNAUDITED)

                                                        [Enlarge/Download Table]

                                  GROWTH AND    SMALL COMPANY   INTERNATIONAL       INDEX    
                                 INCOME FUND     GROWTH FUND     GROWTH FUND     EQUITY FUND 
                                --------------  --------------  -------------   -------------
                                                                                             
ASSETS:                                                                                      
  Investments:                                                                               
    Investments at cost.......  $  637,772,100   $570,818,435   $ 448,389,175   $ 479,411,433
    Net unrealized                                                                           
appreciation/(depreciation)...     366,576,828    153,614,359     103,422,612     436,575,088
    Repurchase agreements, at                                                                
      cost....................       7,785,969     16,383,358      17,982,934       5,486,776
                                --------------  --------------  -------------   -------------
    Total Investments at                                                                     
      value...................   1,012,134,897    740,816,152     569,794,721     921,473,297
  Foreign currency at value                                                                  
    (cost $0; $0; $2,594,025;                                                                
    $0, respectively).........              --             --       2,590,273              --
  Interest and dividends                                                                     
    receivable................       1,085,840        439,607       1,056,454         825,875
  Receivable for capital                                                                     
    shares issued.............              --          2,458           1,000          23,289
  Receivable for investments                                                                 
    sold......................       5,357,650             --              --       5,111,497
  Tax reclaim receivable......              --             --       1,042,376              --
  Net receivable for variation                                                               
    margin on future                                                                         
    contracts.................       1,218,750         90,165              --         225,640
  Prepaid expenses and other                                                                 
    assets....................          25,848         21,429          20,508          24,120
                                --------------  --------------  -------------   -------------
    Total Assets..............   1,019,822,985    741,369,811     574,505,332     927,683,718
                                --------------  --------------  -------------   -------------
LIABILITIES:                                                                                 
  Custodian payable...........              --             --          31,031              --
  Payable for investments                                                                    
    purchased.................              --        707,391              --         125,675
  Payable for capital shares                                                                 
    redeemed..................          31,267         53,780          23,688          48,624
  Payable for return of                                                                      
    collateral received for                                                                  
    securities on loan........      15,018,803     46,197,405      49,712,953      21,843,938
  Foreign withholding taxes                                                                  
    payable...................              --             --         123,056              --
  Payable to investment                                                                      
    adviser...................         557,841        387,446         323,580         178,721
  Payable to administrator....          14,426         10,021           7,808           8,643
  Distribution fees payable                                                                  
    (Investment Shares).......          11,154          4,758           2,620           8,656
  Accrued expenses and other                                                                 
    liabilities...............          49,961         44,457          84,308          47,800
                                --------------  --------------  -------------   -------------
    Total Liabilities.........      15,683,452     47,405,258      50,309,044      22,262,057
                                --------------  --------------  -------------   -------------
NET ASSETS....................  $1,004,139,533   $693,964,553   $ 524,196,288   $ 905,421,661
                                --------------  --------------  -------------   -------------
                                --------------  --------------  -------------   -------------
NET ASSETS CONSIST OF:                                                                       
  Paid-in capital.............  $  613,021,907   $546,568,039   $ 417,972,339   $ 461,701,872
  Accumulated undistributed                                                                  
    (distributions in excess                                                                 
    of) net investment                                                                       
    income....................         586,840        (34,631)     (1,704,295)        272,787
  Accumulated undistributed                                                                  
    net realized                                                                             
    gains/(losses) on                                                                        
    investments, foreign                                                                     
    currency and futures                                                                     
    contracts sold............      21,851,283     (6,496,054)      4,565,670       6,457,964
  Net unrealized                                                                             
   appreciation/(depreciation)                                                               
    of investments,                                                                          
    futures and translation of                                                               
    assets and liabilities in                                                                
    foreign                                                                                  
    currencies................     368,679,503    153,927,199     103,362,574     436,989,038
                                --------------  --------------  -------------   -------------
TOTAL NET ASSETS..............  $1,004,139,533   $693,964,553   $ 524,196,288   $ 905,421,661
                                --------------  --------------  -------------   -------------
                                --------------  --------------  -------------   -------------
INSTITUTIONAL SHARES:                                                                        
  Net Assets..................  $  947,532,582   $669,928,130   $ 511,413,690   $ 858,270,803
  Shares Outstanding..........      48,030,217     40,394,847      31,925,147      31,809,016
  Net Assets Value, offering                                                                 
    and redemption price per                                                                 
    share.....................  $        19.73   $      16.58   $       16.02   $       26.98
                                --------------  --------------  -------------   -------------
                                --------------  --------------  -------------   -------------
INVESTMENT SHARES:                                                                           
  Net Assets..................  $   56,606,951   $ 24,036,423   $  12,782,598   $  47,150,858
  Shares Outstanding..........       2,893,123      1,456,272         807,501       1,746,685
  Net Assets Value, offering                                                                 
    and redemption price per                                                                 
    share.....................  $        19.57   $      16.51   $       15.83   $       26.99
                                --------------  --------------  -------------   -------------
                                --------------  --------------  -------------   -------------

SEE NOTES TO FINANCIAL STATEMENTS.
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                        STATEMENTS OF ASSETS AND LIABILITIES
(CONTINUED) 
             JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                                      SHORT TERM   INTERMEDIATE               
                                      BOND FUND     BOND FUND    INCOME FUND  
                                     ------------  ------------  ------------ 
                                                                              
ASSETS:                                                                       
  Investments:                                                                
    Investments at cost............  $154,062,374  $896,515,654  $326,240,064 
    Net unrealized                                                            
     appreciation/(depreciation)...    (1,542,699)  (18,104,772)   (7,182,842)
    Repurchase agreements, at                                                 
      cost.........................    10,281,415    66,508,841    35,898,691 
                                     ------------  ------------  ------------ 
    Total investments at value.....   162,801,090   944,919,723   354,955,913 
  Interest and dividends                                                      
    receivable.....................     2,869,487    11,394,005     4,868,873 
  Receivable for capital shares                                               
    issued.........................            --         7,759            -- 
  Prepaid expenses and other                                                  
    assets.........................        14,879        25,433        17,318 
                                     ------------  ------------  ------------ 
    Total Assets...................   165,685,456   956,346,920   359,842,104 
                                     ------------  ------------  ------------ 
LIABILITIES:                                                                  
  Payable for capital shares                                                  
    redeemed.......................         1,325           250         4,486 
  Payable for return of collateral                                            
    received for securities on                                                
    loan...........................    17,170,260   118,434,276    62,437,879 
  Payable to investment adviser....        61,034       384,349       138,408 
  Payable to administrator.........         2,197        12,330         4,359 
  Distribution fees payable                                                   
    (Investment Shares)............           642         2,399         2,288 
  Accrued expenses and other                                                  
    liabilities....................        11,215        44,842         7,928 
                                     ------------  ------------  ------------ 
    Total Liabilities..............    17,246,673   118,878,446    62,595,348 
                                     ------------  ------------  ------------ 
NET ASSETS.........................  $148,438,783  $837,468,474  $297,246,756 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
NET ASSETS CONSIST OF:                                                        
  Paid-in capital..................  $156,745,343  $863,390,449  $305,478,031 
  Accumulated undistributed                                                   
    (distributions in excess of)                                              
    net investment                                                            
    income.........................           913         2,307       (10,960)
  Accumulated undistributed net                                               
    realized gains/(losses) on                                                
    investments sold...............    (1,542,699)  (18,104,772)   (7,182,842)
  Net unrealized                                                              
    appreciation/(depreciation) of                                            
    investments....................    (6,764,774)   (7,819,510)   (1,037,473)
                                     ------------  ------------  ------------ 
TOTAL NET ASSETS...................  $148,438,783  $837,468,474  $297,246,756 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
INSTITUTIONAL SHARES:                                                         
  Net Assets.......................  $143,269,935  $826,027,340  $285,654,536 
  Shares Outstanding...............    14,932,042    85,915,483    29,596,012 
  Net Assets Value, offering and                                              
    redemption price per share.....  $       9.59  $       9.61  $       9.65 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
INVESTMENT SHARES:                                                            
  Net Assets.......................  $  5,168,848  $ 11,441,134  $ 11,592,220 
  Shares Outstanding...............       539,272     1,187,349     1,202,776 
  Net Assets Value, offering and                                              
    redemption price per share.....  $       9.58  $       9.64  $       9.64 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 

SEE NOTES TO FINANCIAL STATEMENTS.
94

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                        STATEMENTS OF ASSETS AND LIABILITIES
(CONTINUED) 
             JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                                                                     MICHIGAN    
                                     INTERMEDIATE     TAX-FREE       MUNICIPAL   
                                    TAX-FREE FUND    INCOME FUND     BOND FUND   
                                    --------------  -------------  ------------- 
                                                                                 
ASSETS:                                                                          
  Investments:                                                                   
    Investments at cost............  $305,666,178   $ 121,856,346  $ 116,842,970 
    Net unrealized                                                               
     appreciation/(depreciation)...     8,757,781       3,475,311      1,337,821 
                                    --------------  -------------  ------------- 
    Total investments at value.....   314,423,959     125,331,657    118,180,791 
  Interest and dividends                                                         
    receivable.....................     4,838,488       1,726,015      1,418,763 
  Prepaid expenses and other                                                     
    assets.........................        28,416          17,780          8,146 
                                    --------------  -------------  ------------- 
    Total Assets...................   319,290,863     127,075,452    119,607,700 
                                    --------------  -------------  ------------- 
LIABILITIES:                                                                     
  Payable for capital shares                                                     
    redeemed.......................         3,000              --             -- 
  Payable for investments                                                        
    purchased......................     1,178,712       1,077,500             -- 
  Payable to investment adviser....       131,700          57,086         44,541 
  Payable to administrator.........         4,704           1,859          1,768 
  Distribution fees payable                                                      
    (Investment Shares)............           911             426            665 
  Accrued expenses and other                                                     
    liabilities....................            --           6,390             99 
                                    --------------  -------------  ------------- 
    Total Liabilities..............     1,319,027       1,143,261         47,073 
                                    --------------  -------------  ------------- 
NET ASSETS.........................  $317,971,836   $ 125,932,191  $ 119,560,627 
                                    --------------  -------------  ------------- 
                                    --------------  -------------  ------------- 
NET ASSETS CONSIST OF:                                                           
  Paid-in capital..................  $308,963,212   $ 122,270,188  $ 118,079,432 
  Accumulated undistributed                                                      
    (distributions in excess of)                                                 
    net investment income..........       (26,157)         14,354         (5,884)
  Accumulated undistributed net                                                  
    realized gains/(losses) on                                                   
    investments sold...............     8,757,781       3,475,311      1,337,821 
  Net unrealized                                                                 
    appreciation/(depreciation) of                                               
    investments....................       277,000         172,338        149,258 
                                    --------------  -------------  ------------- 
TOTAL NET ASSETS...................  $317,971,836   $ 125,932,191  $ 119,560,627 
                                    --------------  -------------  ------------- 
                                    --------------  -------------  ------------- 
INSTITUTIONAL SHARES:                                                            
  Net Assets.......................  $313,322,959   $ 123,774,262  $ 114,178,680 
  Shares Outstanding...............    30,083,881      11,979,342     11,348,788 
  Net Assets Value, offering and                                                 
    redemption price per share.....  $      10.41   $       10.33  $       10.06 
                                    --------------  -------------  ------------- 
                                    --------------  -------------  ------------- 
INVESTMENT SHARES:                                                               
  Net Assets.......................  $  4,648,877   $   2,157,929  $   5,381,947 
  Shares Outstanding...............       446,290         208,380        535,570 
  Net Assets Value, offering and                                                 
    redemption price per share.....  $      10.42   $       10.36  $       10.05 
                                    --------------  -------------  ------------- 
                                    --------------  -------------  ------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
95

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Kent Funds                                

                        STATEMENTS OF ASSETS AND LIABILITIES
(CONTINUED) 
             JUNE 30, 1999 (UNAUDITED)

                                                                [Download Table]

                                                     MICHIGAN                 
                                                    MUNICIPAL     GOVERNMENT  
                                     MONEY MARKET  MONEY MARKET  MONEY MARKET 
                                         FUND          FUND          FUND     
                                     ------------  ------------  ------------ 
                                                                              
ASSETS:                                                                       
  Investments:                                                                
    Investments at amortized                                                  
      cost.........................  $640,939,795  $324,338,202  $159,395,133 
    Repurchase agreements, at cost                                            
      ($0; $0; $38,000,000,                                                   
      respectively)................           --            --    38,000,000  
                                     ------------  ------------  ------------ 
    Total investments at amortized                                            
      cost.........................  $640,939,795  $324,338,202  $197,395,133 
  Interest and dividends                                                      
    receivable.....................    3,916,920     2,282,803       440,230  
  Prepaid expenses and other                                                  
    assets.........................       25,223         8,366        16,478  
                                     ------------  ------------  ------------ 
    Total Assets...................  644,881,938   326,629,371   197,851,841  
                                     ------------  ------------  ------------ 
LIABILITIES:                                                                  
  Custodian payable................      189,040         4,029            --  
  Dividends payable................    2,406,746       762,281       722,459  
  Payable for investments                                                     
    purchased......................           --    10,059,310            --  
  Payable to investment adviser....      215,339       109,065        32,355  
  Payable to administrator.........        5,925         2,578         1,887  
  Accrued expenses and other                                                  
    liabilities....................       54,599        22,520         9,087  
                                     ------------  ------------  ------------ 
    Total Liabilities..............    2,871,649    10,959,783       765,788  
                                     ------------  ------------  ------------ 
NET ASSETS.........................  $642,010,289  $315,669,588  $197,086,053 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
NET ASSETS CONSIST OF:                                                        
  Paid-in capital..................  $642,002,452  $315,679,392  $197,084,605 
  Accumulated undistributed                                                   
    (distributions in excess of)                                              
    net investment                                                            
    income.........................       13,072           781         2,214  
  Accumulated undistributed net                                               
    realized gains/(losses) on                                                
    investments                                                               
    sold...........................       (5,235 )     (10,596 )        (766 )
                                     ------------  ------------  ------------ 
TOTAL NET ASSETS...................  $642,010,289  $315,669,577  $197,086,053 
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
INSTITUTIONAL SHARES:                                                         
  Net Assets.......................  $640,209,323  $314,918,392  $196,953,210 
  Shares Outstanding...............  640,207,512   314,905,911   196,953,971  
  Net Assets Value, offering and                                              
    redemption price per share.....  $      1.00   $      1.00   $      1.00  
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 
INVESTMENT SHARES:                                                            
  Net Assets.......................  $ 1,800,966   $   751,185   $   132,843  
  Shares Outstanding...............    1,801,193       751,163       132,843  
  Net Assets Value, offering and                                              
    redemption price per share.....  $      1.00   $      1.00   $      1.00  
                                     ------------  ------------  ------------ 
                                     ------------  ------------  ------------ 

SEE NOTES TO FINANCIAL STATEMENTS.
96

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Kent Funds                                

            STATEMENTS OF OPERATIONS
                          FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED) 

                                                        [Enlarge/Download Table]

                                 GROWTH AND   SMALL COMPANY   INTERNATIONAL     INDEX     
                                INCOME FUND    GROWTH FUND    GROWTH FUND    EQUITY FUND  
                                ------------  --------------  ------------   ------------ 
                                                                                          
INVESTMENT INCOME:                                                                        
  Dividends...................  $  7,250,476    $ 3,902,115   $ 6,698,075    $  5,763,574 
  Interest....................        13,293         60,152        45,080           9,728 
  Less: Net foreign taxes                                                                 
    withheld..................        (4,271)        (1,836)     (467,098)         (7,527)
                                ------------  --------------  ------------   ------------ 
    Total Investment Income...     7,259,498      3,960,431     6,276,057       5,765,775 
                                ------------  --------------  ------------   ------------ 
EXPENSES:                                                                                 
  Investment advisory fees....     3,232,731      2,404,746     1,957,314       1,262,087 
  Administration fees.........       830,934        617,840       469,518         756,706 
  Distribution fees                                                                       
    (Investment Shares).......        65,277         27,496        15,295          50,112 
  Fund accounting fees........        75,596         66,906        59,175          74,937 
  Custodian fees..............         5,870         14,887       108,625          16,339 
  Transfer agent fees.........        85,453         81,639        60,146          85,913 
  Other expenses..............        61,868         64,153        41,828          56,833 
                                ------------  --------------  ------------   ------------ 
    Total expenses before                                                                 
      waivers.................     4,357,729      3,277,667     2,711,901       2,302,927 
    Less: expenses voluntarily                                                            
      waived..................       (46,180)       (34,352)      (26,096)       (525,793)
                                ------------  --------------  ------------   ------------ 
    Net Expenses..............     4,311,549      3,243,315     2,685,805       1,777,134 
                                ------------  --------------  ------------   ------------ 
NET INVESTMENT INCOME.........     2,947,949        717,116     3,590,252       3,988,641 
                                ------------  --------------  ------------   ------------ 
NET REALIZED AND UNREALIZED                                                               
  GAINS/(LOSSES) ON                                                                       
  INVESTMENTS:                                                                            
  Net realized gains/(losses)                                                             
    on investments and foreign                                                            
    currency transactions.....    20,047,058     (7,765,031)    5,032,129       8,673,989 
  Net realized gains/(losses)                                                             
    on futures contracts......     1,929,795      2,625,773            --         451,907 
  Net change in unrealized                                                                
   appreciation/(depreciation)                                                            
    of investments and                                                                    
    translation of assets and                                                             
    liabilities in foreign                                                                
    currencies................    75,774,854     64,322,376    17,147,622      85,427,463 
                                ------------  --------------  ------------   ------------ 
NET REALIZED AND UNREALIZED                                                               
  GAINS/(LOSSES) ON                                                                       
  INVESTMENTS.................    97,751,707     59,183,118    22,259,828      94,553,359 
                                ------------  --------------  ------------   ------------ 
NET INCREASE/(DECREASE) IN NET                                                            
  ASSETS                                                                                  
  RESULTING FROM OPERATIONS...  $100,699,656    $59,900,234   $25,770,003    $ 98,542,000 
                                ------------  --------------  ------------   ------------ 
                                ------------  --------------  ------------   ------------ 

SEE NOTES TO FINANCIAL STATEMENTS.
97

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                        STATEMENTS OF OPERATIONS (CONTINUED)
                          FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED) 

                                                                [Download Table]

                                     SHORT TERM   INTERMEDIATE               
                                      BOND FUND    BOND FUND    INCOME FUND  
                                     -----------  ------------  ------------ 
                                                                             
INVESTMENT INCOME:                                                           
  Interest.........................  $ 4,573,753  $ 27,794,944  $  8,689,572 
  Dividends........................       91,253       623,274       139,555 
                                     -----------  ------------  ------------ 
    Total Investment Income........    4,665,006    28,418,218     8,829,127 
                                     -----------  ------------  ------------ 
EXPENSES:                                                                    
  Investment advisory fees.........      370,821     2,407,730       760,230 
  Administration fees..............      133,421       787,778       228,039 
  Distribution fees (Investment                                              
    Shares)........................        6,861        15,069        13,190 
  Fund accounting fees.............       13,453        70,253        22,847 
  Custodian fees...................          168           821           659 
  Transfer agent fees..............       23,688        42,644        22,059 
  Other expenses...................       20,607        72,031        30,746 
                                     -----------  ------------  ------------ 
    Total expenses before                                                    
      waivers......................      569,019     3,396,326     1,077,770 
    Less: expenses voluntarily                                               
      waived.......................      (10,161)      (43,774)      (12,670)
                                     -----------  ------------  ------------ 
    Net Expenses...................      558,858     3,352,552     1,065,100 
                                     -----------  ------------  ------------ 
NET INVESTMENT INCOME..............    4,106,148    25,065,666     7,764,027 
                                     -----------  ------------  ------------ 
NET REALIZED AND UNREALIZED                                                  
  GAINS/(LOSSES) ON                                                          
  INVESTMENTS:                                                               
  Net realized gains/(losses) on                                             
    investments sold...............       31,262    (3,074,005)     (952,049)
  Net change in unrealized                                                   
    appreciation/(depreciation) of                                           
    investments....................   (2,819,116)  (37,024,548)  (15,830,175)
                                     -----------  ------------  ------------ 
NET REALIZED AND UNREALIZED                                                  
  GAINS/(LOSSES) ON                                                          
  INVESTMENTS......................   (2,787,854)  (40,098,553)  (16,782,224)
                                     -----------  ------------  ------------ 
NET INCREASE/(DECREASE) IN NET                                               
  ASSETS RESULTING FROM                                                      
  OPERATIONS.......................  $ 1,318,294  $(15,032,887) $ (9,018,197)
                                     -----------  ------------  ------------ 
                                     -----------  ------------  ------------ 

SEE NOTES TO FINANCIAL STATEMENTS.
98

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Kent Funds                                

                        STATEMENTS OF OPERATIONS (CONTINUED)
                          FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED) 

                                                                [Download Table]

                                     INTERMEDIATE                    MICHIGAN  
                                      TAX-FREE       TAX-FREE       MUNICIPAL  
                                        FUND       INCOME FUND      BOND FUND  
                                     -----------  --------------   ------------
                                                                               
INVESTMENT INCOME:                                                             
  Interest.........................  $7,390,179     $ 3,122,506    $ 2,751,781 
  Dividends........................      90,686          41,747         37,330 
                                     -----------  --------------   ------------
    Total Investment Income........   7,480,865       3,164,253      2,789,111 
                                     -----------  --------------   ------------
EXPENSES:                                                                      
  Investment advisory fees.........     766,973         346,119        269,170 
  Administration fees..............     275,431         113,254        107,623 
  Distribution fees (Investment                                                
    Shares)........................       5,161           2,444          6,903 
  Fund accounting fees.............      30,713          15,001         14,954 
  Custodian fees...................       1,087              --            466 
  Transfer agent fees..............      19,379          17,063         16,554 
  Other expenses...................      38,817          26,587         14,843 
                                     -----------  --------------   ------------
    Total expenses before                                                      
      waivers......................   1,137,561         520,468        430,513 
    Less: expenses voluntarily                                                 
      waived.......................     (15,339 )        (6,293)        (8,742)
                                     -----------  --------------   ------------
    Net Expenses...................   1,122,222         514,175        421,771 
                                     -----------  --------------   ------------
NET INVESTMENT INCOME..............   6,358,643       2,650,078      2,367,340 
                                     -----------  --------------   ------------
NET REALIZED AND UNREALIZED                                                    
  GAINS/(LOSSES) ON                                                            
  INVESTMENTS:                                                                 
  Net realized gains/(losses) on                                               
    investments sold...............     275,512         171,350        149,258 
  Net change in unrealized                                                     
    appreciation/(depreciation) of                                             
    investments....................  (9,506,051 )    (5,068,371)    (2,572,780)
                                     -----------  --------------   ------------
NET REALIZED AND UNREALIZED                                                    
  GAINS/(LOSSES) ON                                                            
  INVESTMENTS......................  (9,230,539 )    (4,897,021)    (2,423,522)
                                     -----------  --------------   ------------
NET INCREASE/(DECREASE) IN NET                                                 
  ASSETS RESULTING FROM                                                        
  OPERATIONS.......................  $(2,871,896)   $(2,246,943)   $   (56,182)
                                     -----------  --------------   ------------
                                     -----------  --------------   ------------

SEE NOTES TO FINANCIAL STATEMENTS.
99

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Kent Funds                                

                        STATEMENTS OF OPERATIONS (CONTINUED)
                          FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED) 

                                                                [Download Table]

                                                     MICHIGAN                  
                                                     MUNICIPAL     GOVERNMENT  
                                    MONEY MARKET   MONEY MARKET   MONEY MARKET 
                                        FUND           FUND           FUND     
                                    -------------  -------------  -------------
                                                                               
INVESTMENT INCOME:                                                             
  Interest.........................  $15,600,802     $4,979,654     $4,111,799 
  Dividends........................    1,552,997         92,425        270,527 
                                    -------------  -------------  -------------
    Total Investment Income........   17,153,799      5,072,079      4,382,326 
                                    -------------  -------------  -------------
EXPENSES:                                                                      
  Investment advisory fees.........    1,360,678        629,970        359,466 
  Administration fees..............      612,297        283,213        161,679 
  Fund accounting fees.............       52,921         25,704         14,406 
  Custodian fees...................        5,443          2,092          2,330 
  Transfer agent fees..............       32,171         16,388         15,882 
  Other expenses...................       80,490         28,212         29,066 
                                    -------------  -------------  -------------
    Total expenses before                                                      
      waivers......................    2,144,647        985,579        582,829 
    Less: expenses voluntarily                                                 
      waived.......................     (289,907)      (149,643)      (247,777)
                                    -------------  -------------  -------------
    Net Expenses...................    1,854,740        835,936        335,052 
                                    -------------  -------------  -------------
NET INVESTMENT INCOME..............   15,299,059      4,236,143      4,047,274 
                                    -------------  -------------  -------------
NET REALIZED GAINS/(LOSSES) ON                                                 
  INVESTMENTS......................         (162)            --             -- 
                                    -------------  -------------  -------------
NET INCREASE/(DECREASE) IN NET                                                 
  ASSETS RESULTING FROM                                                        
  OPERATIONS.......................  $15,298,897     $4,236,143     $4,047,274 
                                    -------------  -------------  -------------
                                    -------------  -------------  -------------

SEE NOTES TO FINANCIAL STATEMENTS.
100 

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Kent Funds                                

                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                                                             SMALL COMPANY            
                                     GROWTH AND INCOME FUND                   GROWTH FUND             
                                --------------------------------   ---------------------------------- 
                                  SIX MONTHS                         SIX MONTHS                       
                                    ENDED          YEAR ENDED           ENDED           YEAR ENDED    
                                JUNE 30, 1999     DECEMBER 31,      JUNE 30, 1999      DECEMBER 31,   
                                 (UNAUDITED)          1998           (UNAUDITED)           1998       
                                                                                                      
                                --------------------------------   ---------------------------------- 

NET ASSETS AT BEGINNING OF                                                                            
  PERIOD......................  $  878,285,832    $  733,315,634   $   783,790,477     $  742,781,688 
                                --------------  ----------------   ---------------   ---------------- 
INCREASE IN NET ASSETS                                                                                
  RESULTING FROM OPERATIONS:                                                                          
  Net investment income.......       2,947,949         5,881,760           717,116          1,303,294 
  Net realized gains/(losses)                                                                         
    on investment and foreign                                                                         
    currency transactions.....      20,047,058        25,901,332        (7,765,031)        56,249,334 
  Net realized gains/(losses)                                                                         
    on futures contracts......       1,929,795         3,481,810         2,625,773          3,370,391 
  Net change in unrealized                                                                            
   appreciation/(depreciation)                                                                        
    of                                                                                                
    investments and                                                                                   
    translation of assets and                                                                         
    liabilities in                                                                                    
    foreign currencies........      75,774,854       164,789,723        64,322,376        (99,658,205)
                                --------------  ----------------   ---------------   ---------------- 
  Net increase/(decrease) in                                                                          
    net assets resulting from                                                                         
    operations................     100,699,656       200,054,625        59,900,234        (38,735,186)
                                --------------  ----------------   ---------------   ---------------- 
DIVIDENDS AND DISTRIBUTIONS TO                                                                        
  SHAREHOLDERS FROM:                                                                                  
INSTITUTIONAL:                                                                                        
  Net investment income.......      (2,280,724)       (5,717,209)         (744,588)        (1,316,803)
  In excess of net investment                                                                         
    income....................              --          (497,079)               --                 -- 
  Net realized gains on                                                                               
    investments...............     (12,373,781)      (67,102,370)      (15,592,345)       (78,853,710)
                                --------------  ----------------   ---------------   ---------------- 
    Total dividends and                                                                               
      distributions --                                                                                
      Institutional Shares....     (14,654,505)      (73,316,658)      (16,336,933)       (80,170,513)
                                --------------  ----------------   ---------------   ---------------- 
INVESTMENT:                                                                                           
  Net investment income.......         (73,340)         (214,560)               --                 -- 
  In excess of net investment                                                                         
    income....................              --           (46,210)               --                 -- 
  Net realized gains on                                                                               
    investments...............        (775,701)       (3,959,835)         (486,419)        (2,576,664)
                                --------------  ----------------   ---------------   ---------------- 
    Total dividends and                                                                               
      distributions --                                                                                
      Investment Shares.......        (849,041)       (4,220,605)         (486,419)        (2,576,664)
                                --------------  ----------------   ---------------   ---------------- 
    Total dividends and                                                                               
      distributions to                                                                                
      shareholders............     (15,503,546)      (77,537,263)      (16,823,352)       (82,747,177)
                                --------------  ----------------   ---------------   ---------------- 
NET INCREASE/(DECREASE) FROM                                                                          
  CAPITAL TRANSACTIONS........      40,657,591        22,452,836      (132,902,806)       162,491,152 
                                --------------  ----------------   ---------------   ---------------- 
  Net increase/(decrease) in                                                                          
    net assets................     125,853,701       144,970,198       (89,825,924)        41,008,789 
                                --------------  ----------------   ---------------   ---------------- 
NET ASSETS AT END OF PERIOD...  $1,004,139,533    $  878,285,832   $   693,964,553     $  783,790,477 
                                --------------  ----------------   ---------------   ---------------- 
                                --------------  ----------------   ---------------   ---------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
101 

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Kent Funds                                

(CONTINUED) 
                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                    INTERNATIONAL GROWTH FUND               INDEX EQUITY FUND         
                                ---------------------------------   --------------------------------- 
                                  SIX MONTHS                          SIX MONTHS                      
                                    ENDED           YEAR ENDED          ENDED           YEAR ENDED    
                                JUNE 30, 1999      DECEMBER 31,     JUNE 30, 1999      DECEMBER 31,   
                                 (UNAUDITED)           1998          (UNAUDITED)           1998       
                                                                                                      
                                ---------------------------------   --------------------------------- 

NET ASSETS AT BEGINNING OF                                                                            
  PERIOD......................   $ 540,889,186     $  502,378,709    $ 809,351,352     $  618,163,526 
                                --------------   ----------------   --------------   ---------------- 
INCREASE IN NET ASSETS                                                                                
  RESULTING FROM OPERATIONS:                                                                          
  Net investment income.......       3,590,252          4,592,271        3,988,641          7,736,080 
  Net realized gains/(losses)                                                                         
    on investments and foreign                                                                        
    currency transactions.....       5,032,129         65,343,795        8,673,989          2,640,102 
  Net realized gains/(losses)                                                                         
    on futures contracts......              --                 --          451,907            226,836 
  Net change in unrealized                                                                            
   appreciation/(depreciation)                                                                        
    of                                                                                                
    investments and                                                                                   
    translation of assets and                                                                         
    liabilities in                                                                                    
    foreign currencies........      17,147,622         19,020,408       85,427,463        168,607,691 
                                --------------   ----------------   --------------   ---------------- 
  Net increase/(decrease) in                                                                          
    net assets resulting from                                                                         
    operations................      25,770,003         88,956,474       98,542,000        179,210,709 
                                --------------   ----------------   --------------   ---------------- 
DIVIDENDS AND DISTRIBUTIONS TO                                                                        
  SHAREHOLDERS FROM:                                                                                  
INSTITUTIONAL:                                                                                        
  Net investment income.......      (1,350,534)        (2,352,718)      (3,580,459)        (7,447,316)
  In excess of net investment                                                                         
    income....................              --         (3,928,519)              --             (5,750)
  Net realized gains on                                                                               
    investments...............     (20,356,350)       (43,820,789)      (3,143,377)        (1,228,000)
                                --------------   ----------------   --------------   ---------------- 
    Total dividends and                                                                               
      distributions --                                                                                
      Institutional Shares....     (21,706,884)       (50,102,026)      (6,723,836)        (8,681,066)
                                --------------   ----------------   --------------   ---------------- 
INVESTMENT:                                                                                           
  Net investment income.......         (28,858)                --         (129,436)          (284,041)
  In excess of net investment                                                                         
    income....................              --           (144,473)              --             (7,182)
  Net realized gains on                                                                               
    investments...............        (474,091)        (1,024,896)        (153,979)           (61,833)
                                --------------   ----------------   --------------   ---------------- 
    Total dividends and                                                                               
      distributions --                                                                                
      Investment Shares.......        (502,949)        (1,169,369)        (283,415)          (353,056)
                                --------------   ----------------   --------------   ---------------- 
    Total dividends and                                                                               
      distributions to                                                                                
      shareholders............     (22,209,833)       (51,271,395)      (7,007,251)        (9,034,122)
                                --------------   ----------------   --------------   ---------------- 
NET INCREASE/(DECREASE) FROM                                                                          
  CAPITAL TRANSACTIONS........     (20,253,069)           825,398        4,535,560         21,011,239 
                                --------------   ----------------   --------------   ---------------- 
  Net increase/(decrease) in                                                                          
    net assets................     (16,692,899)        38,510,477       96,070,309        191,187,826 
                                --------------   ----------------   --------------   ---------------- 
NET ASSETS AT END OF PERIOD...   $ 524,196,287     $  540,889,186    $ 905,421,661     $  809,351,352 
                                --------------   ----------------   --------------   ---------------- 
                                --------------   ----------------   --------------   ---------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
102 

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Kent Funds                                

(CONTINUED) 
                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                              SHORT TERM BOND FUND          INTERMEDIATE BOND FUND               INCOME FUND          
                          -----------------------------  -----------------------------  ----------------------------- 
                            SIX MONTHS                     SIX MONTHS                     SIX MONTHS                  
                              ENDED        YEAR ENDED        ENDED        YEAR ENDED        ENDED        YEAR ENDED   
                          JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,  
                           (UNAUDITED)        1998        (UNAUDITED)        1998        (UNAUDITED)        1998      
                                                                                                                      
                          -----------------------------  -----------------------------  ----------------------------- 

NET ASSETS AT BEGINNING                                                                                               
  OF PERIOD.............. $  145,355,056  $ 147,171,664  $  897,892,875  $ 769,711,501  $  241,646,346  $ 235,388,305 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INCREASE IN NET ASSETS                                                                                                
  RESULTING FROM                                                                                                      
  OPERATIONS:                                                                                                         
  Net investment                                                                                                      
    income...............      4,106,148      7,990,388      25,065,666     45,554,802       7,764,027     15,411,966 
  Net realized                                                                                                        
    gains/(losses) on                                                                                                 
    investments sold.....         31,262        (96,072)     (3,074,005)     5,947,686        (952,049)     5,514,294 
  Net change in                                                                                                       
    unrealized                                                                                                        
    appreciation/(depreciation)                                                                                       
    of investments.......     (2,819,116)       489,306     (37,024,548)     5,377,857     (15,830,175)     1,312,791 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets                                                                                                     
    resulting from                                                                                                    
    operations...........      1,318,294      8,383,622     (15,032,887)    56,880,345      (9,018,197)    22,239,051 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
DIVIDENDS AND                                                                                                         
  DISTRIBUTIONS TO                                                                                                    
  SHAREHOLDERS FROM:                                                                                                  
INSTITUTIONAL:                                                                                                        
  Net investment                                                                                                      
    income...............     (3,958,091)    (7,612,645)    (24,974,762)   (45,070,559)     (7,461,183)   (14,910,611)
  In excess of net                                                                                                    
    investment income....             --             --              --             --              --         (2,725)
  Net realized gains on                                                                                               
    investments..........             --             --              --             --        (278,297)    (5,347,331)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Institutional                                                                                                   
      Shares.............     (3,958,091)    (7,612,645)    (24,974,762)   (45,070,559)     (7,739,480)   (20,260,667)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INVESTMENT:                                                                                                           
  Net investment                                                                                                      
    income...............       (145,709)      (364,391)       (332,666)      (541,970)       (307,194)      (514,425)
  In excess of net                                                                                                    
    investment income....             --        (17,935)             --             --              --        (23,412)
  Net realized gains on                                                                                               
    investments..........             --             --              --             --         (12,034)      (239,521)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Investment                                                                                                      
      Shares.............       (145,709)      (382,326)       (332,666)      (541,970)       (319,228)      (777,358)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions to                                                                                                
      shareholders.......     (4,103,800)    (7,994,971)    (25,307,428)   (45,612,529)     (8,058,708)   (21,038,025)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET INCREASE/(DECREASE)                                                                                               
  FROM CAPITAL                                                                                                        
  TRANSACTIONS...........      5,869,233     (2,205,259)    (20,084,086)   116,913,558      72,677,315      5,057,015 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets........      3,083,727     (1,816,608)    (60,424,401)   128,181,374      55,600,410      6,258,041 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET ASSETS AT END OF                                                                                                  
  PERIOD................. $  148,438,783  $ 145,355,056  $  837,468,474  $ 897,892,875  $  297,246,756  $ 241,646,346 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
                          --------------  -------------  --------------  -------------  --------------  ------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
103 

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Kent Funds                                

(CONTINUED) 
                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                  INTERMEDIATE                     TAX-FREE                  MICHIGAN MUNICIPAL       
                                  TAX-FREE FUND                   INCOME FUND                     BOND FUND           
                          -----------------------------  -----------------------------  ----------------------------- 
                            SIX MONTHS                     SIX MONTHS                     SIX MONTHS                  
                              ENDED        YEAR ENDED        ENDED        YEAR ENDED        ENDED        YEAR ENDED   
                          JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,  
                           (UNAUDITED)        1998        (UNAUDITED)        1998        (UNAUDITED)        1998      
                                                                                                                      
                          -----------------------------  -----------------------------  ----------------------------- 

NET ASSETS AT BEGINNING                                                                                               
  OF PERIOD.............. $  300,521,904  $ 279,175,752  $  130,170,230  $ 118,364,159  $  123,902,863  $ 116,148,299 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INCREASE IN NET ASSETS                                                                                                
  RESULTING FROM                                                                                                      
  OPERATIONS:                                                                                                         
  Net investment                                                                                                      
    income...............      6,358,643     12,057,430       2,650,078      5,194,579       2,367,340      4,950,765 
  Net realized                                                                                                        
    gains/(losses) on                                                                                                 
    investments sold.....        275,512      1,069,994         171,350        628,871         149,258        174,981 
  Net change in                                                                                                       
    unrealized                                                                                                        
    appreciation/(depreciation)                                                                                       
    of investments.......     (9,506,051)     1,761,120      (5,068,371)     1,185,845      (2,572,780)       568,378 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets                                                                                                     
    resulting from                                                                                                    
    operations...........     (2,871,896)    14,888,544      (2,246,943)     7,009,295         (56,182)     5,694,124 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
DIVIDENDS AND                                                                                                         
  DISTRIBUTIONS TO                                                                                                    
  SHAREHOLDERS FROM:                                                                                                  
INSTITUTIONAL:                                                                                                        
  Net investment                                                                                                      
    income...............     (6,308,886)   (11,933,893)     (2,597,168)    (5,118,923)     (2,287,671)    (4,809,973)
  In excess of net                                                                                                    
    investment income....             --       (738,103)             --             --              --             -- 
  Net realized gains on                                                                                               
    investments..........       (297,655)            --        (108,848)      (600,924)             --        (80,492)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Institutional                                                                                                   
      Shares.............     (6,606,541)   (12,671,996)     (2,706,016)    (5,719,847)     (2,287,671)    (4,890,465)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INVESTMENT:                                                                                                           
  Net investment                                                                                                      
    income...............        (80,296)      (149,636)        (38,970)       (73,875)       (105,719)      (182,181)
  In excess of net                                                                                                    
    investment income....             --        (10,299)             --             --              --             -- 
  Net realized gains on                                                                                               
    investments..........         (3,898)            --          (1,661)        (8,888)             --         (4,050)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Investment                                                                                                      
      Shares.............        (84,194)      (159,935)        (40,631)       (82,763)       (105,719)      (186,231)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions to                                                                                                
      shareholders.......     (6,690,735)   (12,831,931)     (2,746,647)    (5,802,610)     (2,393,390)    (5,076,696)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET INCREASE/(DECREASE)                                                                                               
  FROM CAPITAL                                                                                                        
  TRANSACTIONS...........     27,012,563     19,289,539         755,551     10,599,386      (1,892,664)     7,137,136 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets........     17,449,932     21,346,152      (4,238,039)    11,806,071      (4,342,236)     7,754,564 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET ASSETS AT END OF                                                                                                  
  PERIOD................. $  317,971,836  $ 300,521,904  $  125,932,191  $ 130,170,230  $  119,560,627  $ 123,902,863 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
                          --------------  -------------  --------------  -------------  --------------  ------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
104 

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Kent Funds                                

(CONTINUED) 
                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                                              MICHIGAN MUNICIPAL                 GOVERNMENT           
                                MONEY MARKET FUND              MONEY MARKET FUND              MONEY MARKET FUND       
                          -----------------------------  -----------------------------  ----------------------------- 
                            SIX MONTHS                     SIX MONTHS                     SIX MONTHS                  
                              ENDED        YEAR ENDED        ENDED        YEAR ENDED        ENDED        YEAR ENDED   
                          JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,   JUNE 30, 1999   DECEMBER 31,  
                           (UNAUDITED)        1998        (UNAUDITED)        1998        (UNAUDITED)        1998      
                                                                                                                      
                          -----------------------------  -----------------------------  ----------------------------- 

NET ASSETS AT BEGINNING                                                                                               
  OF PERIOD.............. $  697,127,619  $ 475,557,215  $  323,617,493  $ 211,971,193  $  167,015,544  $  94,626,461 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INCREASE IN NET ASSETS                                                                                                
  RESULTING FROM                                                                                                      
  OPERATIONS:                                                                                                         
  Net investment                                                                                                      
    income...............     15,299,059     28,254,914       4,236,143      9,607,143       4,047,274      5,863,503 
  Net realized                                                                                                        
    gains/(losses) on                                                                                                 
    investments..........           (162)        (3,030)             --          1,873              --           (766)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets                                                                                                     
    resulting from                                                                                                    
    operations...........     15,298,897     28,251,884       4,236,143      9,609,016       4,047,274      5,862,737 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
DIVIDENDS AND                                                                                                         
  DISTRIBUTIONS TO                                                                                                    
  SHAREHOLDERS FROM:                                                                                                  
INSTITUTIONAL:                                                                                                        
  Net investment                                                                                                      
    income...............    (15,253,657)   (28,105,841)     (4,226,582)    (9,596,573)     (4,044,581)    (5,861,605)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Institutional                                                                                                   
      Shares.............    (15,253,657)   (28,105,841)     (4,226,582)    (9,596,573)     (4,044,581)    (5,861,605)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
INVESTMENT:                                                                                                           
  Net investment                                                                                                      
    income...............        (45,402)      (149,073)         (9,561)       (10,570)         (2,692)        (1,898)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions --                                                                                                
      Investment                                                                                                      
      Shares.............        (45,402)      (149,073)         (9,561)       (10,570)         (2,692)        (1,898)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
    Total dividends and                                                                                               
      distributions to                                                                                                
      shareholders.......    (15,299,059)   (28,254,914)     (4,236,143)    (9,607,143)     (4,047,273)    (5,863,503)
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET INCREASE/(DECREASE)                                                                                               
  FROM CAPITAL                                                                                                        
  TRANSACTIONS...........    (55,117,168)   221,573,434      (7,947,916)   111,644,427      30,070,508     72,389,849 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
  Net increase/(decrease)                                                                                             
    in net assets........    (55,117,330)   221,570,404      (7,947,916)   111,646,300      30,070,509     72,389,083 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
NET ASSETS AT END OF                                                                                                  
  PERIOD................. $  642,010,289  $ 697,127,619  $  315,669,577  $ 323,617,493  $  197,086,053  $ 167,015,544 
                          --------------  -------------  --------------  -------------  --------------  ------------- 
                          --------------  -------------  --------------  -------------  --------------  ------------- 

SEE NOTES TO FINANCIAL STATEMENTS.
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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1.  ORGANIZATION                                                                

The Kent Funds (the "Trust") was organized as a Massachusetts business trust
on May 9, 1986 and is registered under the Investment Company Act of 1940, as   
amended (the "1940 Act"), as an open-end management investment company. As of   
the date of this report, the Trust offered thirteen managed investment funds.   
The accompanying financial statements and financial highlights are those of the 
following: Kent Growth and Income Fund, Kent Small Company Growth Fund, Kent    
International Growth Fund, Kent Index Equity Fund, Kent Short Term Bond Fund,   
Kent Intermediate Bond Fund, Kent Income Fund, Kent Intermediate Tax-Free Fund, 
Kent Tax-Free Income Fund, Kent Michigan Municipal Bond Fund, Kent Money Market 
Fund, Kent Michigan Municipal Money Market Fund and Kent Government Money Market
Fund (individually, a "Fund" and collectively, the "Funds").                    

  The Trust's Declaration of Trust authorizes the Trustees to issue an unlimited
number of shares of beneficial interest without par value and it allows for the 
creation of one or more classes of shares within each series.                   

The Trust may issue more than one series of shares investing in Funds of    
securities. The Trust currently issues thirteen series of shares with two       
separate classes in each series: Investment Shares and Institutional Shares.    
Each share in each series or class has identical voting, dividend, liquidation  
and other rights, except in matters affecting only a particular series or class,
in which case only shares of the affected series or class are entitled to vote. 

The investment objectives of the Funds are as follows:                      

  GROWTH AND INCOME FUND -- To seek long-term capital growth with current income
as a secondary objective.                                                       

SMALL COMPANY GROWTH FUND -- To seek long-term capital appreciation.        

INTERNATIONAL GROWTH FUND -- To seek long-term growth of capital.           

INDEX EQUITY FUND -- To seek long-term capital appreciation with current    
income as a secondary objective.                                                

SHORT TERM BOND FUND -- To seek current income.                             

INTERMEDIATE BOND FUND -- To seek current income.                           

INCOME FUND -- To seek current income.                                      

INTERMEDIATE TAX-FREE FUND -- To seek current income that is exempt from    
federal income tax.                                                             

TAX-FREE INCOME FUND -- To seek current income that is exempt from federal  
income tax.                                                                     

MICHIGAN MUNICIPAL BOND FUND -- To seek current income that is exempt from  
federal income tax and Michigan personal income tax.                            

MONEY MARKET FUND -- To seek current income.                                

 MICHIGAN MUNICIPAL MONEY MARKET FUND -- To seek current income that is exempt
from federal income tax and Michigan personal income tax.                       

GOVERNMENT MONEY MARKET FUND -- To seek current income.                     

2.  SIGNIFICANT ACCOUNTING POLICIES                                             

 The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in     
conformity with generally accepted accounting principles. The preparation of    
financial statements requires management to make estimates and assumptions that 
may affect the reported amounts of assets and liabilities at the date of the    
financial statements and the reported amounts of income and expenses for the    
period. Actual amounts could differ from those estimates.                       

SECURITY VALUATION:  Securities in the Money Market Fund, Michigan Municipal    
Money Market Fund and Government Money Market Fund (the "Money Market Funds")   
are valued utilizing the amortized cost valuation method permitted in accordance
with Rule 2a-7 under the 1940 Act, which approximates market value. This method 
involves valuing a Fund security initially at its cost on the date of purchase  
and thereafter assuming a constant amortization to maturity of the difference   
between the principal amount due at maturity and initial cost.                  

  In the Short Term Bond Fund, Intermediate Bond Fund, Income Fund, Intermediate
Tax-Free Fund, Tax-Free Income Fund and Michigan Municipal Bond Fund, corporate 
debt securities, municipal securities and debt securities of the U.S. government
and its agencies (other than short-term investments maturing in 60 days or less)
are valued on the basis of valuations provided by dealers or by an independent  
pricing service selected by Lyon Street and approved by the Board of Trustees.  
Short-term obligations that mature in 60 days or less are valued at amortized   
cost, which approximates market value. All other securities and other assets are
appraised at their fair value as determined in good faith under consistently    
applied procedures established by and under the general supervision of the Board
of Trustees.                                                                    

The Growth and Income Fund, Small Company Growth Fund, International Growth 
Fund and the Index Equity Fund value listed securities at the last sales price  
on the principal exchange where such securities are traded. Listed securities   
for which last sales prices are not available are valued at the last            

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

bid price. Unlisted securities are valued at the mean of the current bid and    
asked prices in the principal market where such securities trade. Short-term    
obligations that mature in 60 days or less are valued at amortized cost, which  
approximates market value. All other securities and other assets are appraised  
at their fair value as determined in good faith under consistently applied      
procedures established by and under the general supervision of the Board of     
Trustees.                                                                       

REPURCHASE AGREEMENTS:  Each Fund may agree to purchase portfolio securities    
from financial institutions subject to the seller's agreement to repurchase them
at a mutually agreed upon date and price ("repurchase agreement"). The Trust's  
custodian and other banks acting in a sub-custodian capacity, take possession of
the collateral pledged for investments in repurchase agreements. The underlying 
collateral is valued daily on a mark-to-market basis to determine that the      
value, including accrued interest, exceeds the repurchase price. In the event of
the seller's default of the obligation to repurchase, the Funds have the right  
to liquidate the collateral and apply the proceeds in satisfaction of the       
obligation. Under certain circumstances, in the event of the default or         
bankruptcy by the other party to the agreement, realization and/or retention of 
the collateral may be subject to legal proceedings.                             

FOREIGN CURRENCY TRANSLATION:  Investments and other assets and liabilities     
denominated in foreign currencies are converted each business day into U.S.     
dollars based upon current exchange rates. Realized gains and losses on foreign 
investments and foreign income and expenses are converted into U.S. dollars     
based upon exchange rates prevailing on the respective dates of such            
transactions. That portion of unrealized gains or losses on investments due to  
fluctuations in foreign currency exchange rates is not separately disclosed.    

Foreign currency-denominated receivables and payables are "marked-to-market"
using the current exchange rate. The fluctuation between the original exchange  
rate and the current exchange rate is recorded as unrealized currency gain or   
loss. Upon receipt of payment, a Fund realizes a gain or loss on foreign        
currency amounting to the difference between the original value and the ending  
value of the receivable or payable.                                             

FUTURES CONTRACTS:  The Funds (except for the Money Market Funds) may invest in 
futures contracts. This investment involves, to varying degrees, elements of    
market risk and risks in excess of the amount recognized in the Statement of    
Assets and Liabilities. The face or contract amounts reflect the extent of the  
involvement the Funds have in the particular classes of instruments. Risks      
include an imperfect correlation between the movements in the price of the      
instruments and the price of the underlying securities and interest rates. Risks
may also arise if there is an illiquid secondary market for the instruments or  
due to the inability of counterparties to perform under the terms of the        
contract.                                                                       

  Cash or securities are deposited with brokers in order to maintain a position.
Subsequent payments made or received daily by the Fund based on the change in   
the market value of the position are recorded as a realized gain or loss.       

Futures contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded.                        

To the extent that a Fund enters into futures contracts on an index or group
of securities, the Fund exposes itself to an indeterminate liability and will be
required to pay or receive a sum of money measured by the change in the market  
value of the index or group of securities. Upon entering into a futures         
contract, the Fund is required to deposit either cash or securities in an amount
("initial margin") equal to a certain percentage of the contract value with a   
broker. Subsequent payments ("variation margin") equal to changes in the daily  
settlement price or last sale on the exchanges where they trade are paid or     
received each day and are recorded as a gain or loss on futures contracts.      

FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS:  The International Growth Fund may 
enter into forward foreign currency exchange contracts. The purpose of these    
contracts is to hedge against fluctuation in the value of the underlying        
currency of certain Fund investments. A forward foreign currency exchange       
contract is an agreement to purchase or sell a specified currency at a specified
price on a future date. Risks associated with the contract include changes in   
the value of the foreign currency relative to the U.S. dollar and/or the        
counterparty's potential inability to perform under the contract.               

The forward foreign currency exchange contracts are valued daily using the  
current exchange rate of the underlying currency with any fluctuations recorded 
as unrealized gains or losses. Realized gains or losses are recognized when     
entering a closing or offsetting forward foreign currency exchange contracts    
with the same settlement date and broker.                                       

SECURITIES PURCHASED ON A WHEN-ISSUED BASIS:  Each Fund may purchase securities 
on a "when-issued" basis. When-issued securities are securities purchased for   
delivery beyond the normal settlement 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 the 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. Normally, the settlement date occurs within one    
month of the purchase. The Funds segregate cash                                 

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

and marketable securities at least equal in value to commitments for when-issued
securities. Securities purchased on a when-issued basis do not earn income until
settlement date.                                                                
SECURITIES LENDING:  To generate additional income, each Fund may lend portfolio
securities valued up to 33 1/3% of a Fund's total assets, pursuant to agreements
requiring that the loan be continuously secured by cash, U.S. Government or U.S.
Government Agency securities, shares of an investment trust or mutual fund, or  
any combination of cash and such securities as collateral equal at all times to 
at least 102% (105% for foreign securities) of the market value plus accrued    
interest on the securities lent. The Funds continue to earn interest on         
securities lent while simultaneously seeking to earn interest on the investment 
of collateral. Collateral is marked to market daily to provide a level of       
collateral at least equal to the market value of securities lent.               

When cash is received as collateral for securities loaned, the Funds may    
invest such cash in short-term U.S. Government securities, repurchase           
agreements, or other securities with maturities equal to or less than maturity  
date of the applicable lending transaction. The cash or subsequent short-term   
investments are recorded as assets of the Funds, offset by a corresponding      
liability to repay the cash at the termination of the loan. In addition, the    
short-term securities purchased with the cash collateral are included in the    
accompanying schedules of investments. Fixed income securities received as      
collateral are not recorded as an asset or liability of the Fund because the    
Fund does not have effective control of such securities.                        

There may be risks of delay in recovery of the securities or even loss of   
rights in the collateral should the borrower of the securities fail financially.
However, loans will be made only to borrowers deemed by the Investment Adviser  
to be of good standing and creditworthy under guidelines established by the     
Board of Trustees and when, in the judgment of the Investment Adviser, the      
consideration which can be earned currently from such securities loans justifies
the attendant risks. Loans are subject to termination by the Funds or the       
borrower at any time, and are, therefore, not considered to be illiquid         
investments. As of June 30, 1999, the following Funds had securities with the   
following market values on loan (amounts in thousands):                         

                                                                [Download Table]

                                                          MARKET  
                                            MARKET        VALUE   
                                           VALUE OF     OF LOANED 
                                          COLLATERAL    SECURITIES
                                          -----------   ----------
                                                                  
Growth and Income Fund..................    $  15,048    $  14,764
Small Company Growth Fund...............    $  46,364    $  46,094
International Growth Fund...............    $  49,824    $  46,680
Index Equity Fund.......................    $  21,878    $  21,496
Short Term Bond Fund....................    $  17,169    $  16,838


                                                          MARKET  
                                            MARKET        VALUE   
                                           VALUE OF     OF LOANED 
                                          COLLATERAL    SECURITIES
                                          -----------   ----------
                                                                  
Intermediate Bond Fund..................    $ 118,486    $ 115,974
Income Fund.............................    $  62,434    $  61,261

The loaned securities were fully collateralized by cash, corporate notes and
bonds and U.S. Government securities as of June 30, 1999.                       

SECURITIES TRANSACTIONS AND INVESTMENT INCOME:  Securities transactions are     
recorded on the trade date. Net realized gains and losses on investments sold   
and on foreign currency transactions are recorded on the basis of identified    
cost. Interest income is recorded on the accrual basis and includes, where      
applicable, the amortization of premiums or accretion of discounts. Dividend    
income is recorded on the ex-dividend date.                                     

The International Growth Fund, upon the purchase or sale of a security      
denominated in a foreign currency, may enter into foreign currency exchange     
contracts for the purchase or sale, for a fixed amount of U.S. dollars, of the  
amount of foreign currency involved in the underlying security transaction to   
hedge the Fund against currency fluctuations during the settlement period. In   
such cases, the Fund has not realized currency gains or losses between the trade
and settlement dates on these security transactions.                            

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:  The Money Market Fund, Michigan   
Municipal Money Market Fund and Government Money Market Fund declare dividends  
daily from net investment income and pay such dividends monthly. The other Funds
declare and distribute dividends from net investment income monthly, with the   
exception of the International Growth Fund, which declares and pays dividends   
annually. Net realized capital gains, if any, are distributed at least annually.

The amounts of income and capital gains to be distributed are determined in 
accordance with income tax regulations. Such amounts may vary from income and   
capital gains recognized in accordance with generally accepted accounting       
principles.                                                                     

FEDERAL INCOME TAXES:  For federal income tax purposes, each Fund is treated as 
a separate entity for the purpose of determining its qualification as a         
regulated investment company under the Internal Revenue Code (the "Code"). It is
the policy of each Fund to meet the requirements of the Code applicable to      
regulated investment companies, including the requirement that it distribute    
substantially all of its taxable income to shareholders. Therefore, no federal  
income tax provision is required. Withholding taxes on foreign dividends        

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(CONTINUED) 

have been paid or provided for in accordance with the applicable country's tax  
rules and rates.                                                                

EXPENSES:  Expenses directly attributable to a Fund are charged to the Fund,    
while expenses which are attributable to more than one series of the Trust are  
allocated among the respective series based upon relative net assets or another 
appropriate basis. In addition, investors in Investment Shares will pay the     
expenses directly attributable to the Investment Shares as a class, and         
investors in Institutional Shares will pay the expenses directly attributable to
the Institutional Shares as a class.                                            

3.  RELATED PARTY TRANSACTIONS                                                  

The Funds are advised by Lyon Street Asset Management Company ("Lyon Street"
or the "Investment Adviser"), a wholly-owned subsidiary of Old Kent Bank ("Old  
Kent"). Effective as of March 2, 1998, Lyon Street assumed the investment       
advisory responsibilities for each of the Funds from the Investment Management  
Group of Old Kent. This change did not involve a change in control or management
of the investment adviser or a change in the Funds' portfolio managers. The     
Investment Adviser is entitled to receive a fee, computed daily and paid        
monthly, based on each Fund's average daily net assets at the following annual  
rates:                                                                          

  The Index Equity Fund and Government Money Market Fund had investment advisory
fees waived by Lyon Street equal to $210,349 and $179,566, respectively.        

BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS") 
serves the Funds as Administrator and BISYS Fund Services, Inc. serves the Funds
as Fund Accountant and Transfer Agent. BISYS and BISYS Fund Services, Inc. are  
both wholly owned subsidiaries of The BISYS Group, Inc. The Administrator is    
entitled to receive a fee computed daily and paid monthly, at the annual rate of
0.185% of the average daily net assets of the Trust up to $5 billion; 0.165% of 
the average daily net assets of the Trust in excess of $5 billion up to $7.5    
billion; and 0.135% of the average daily net assets of the Trust in excess of   
$7.5 billion. Fund Accounting fees are computed daily and paid monthly at the   
annual rate of 0.015% of the average daily net assets of the Trust.             

Effective July 1, 1999, Kent Funds Distributors, Inc. (also a wholly-owned  
subsidiary of The BISYS Group, Inc.) assumed the role of the Funds' Distributor 
from BISYS.                                                                     

Old Kent provides certain administrative services to the Trust pursuant to a
Sub-Administration Agreement between Old Kent and BISYS. BISYS pays Old Kent a  
fee, calculated daily and paid monthly, at an annual rate of up to 0.05% of each
Fund's average daily net assets. The fees paid to Old Kent by BISYS for such    
administrative services come out of BISYS' administration fee and are not an    
additional charge to the Funds.                                                 

 Certain officers of the Trust are affiliated with BISYS and Lyon Street. Such
officers receive no direct payments or fees from the Funds for serving as       
officers.                                                                       

The Trust has adopted a distribution plan (the "Plan") on behalf of the     
Investment Shares of the Funds pursuant to Rule 12b-1 of the 1940 Act. The Plan 
provides for payments to the Distributor of up to 0.25% of the average daily net
assets of the Investment Shares of the Funds. Although the Money Market Funds   
are authorized to pay 12b-1 fees of up to 0.25% in connection with the sale of  
Investment Shares, none of the Money Market Funds currently intends to pay such 
fees.                                                                           

 Expenses for the Trust include legal fees paid to Drinker Biddle & Reath LLP.
A partner of that firm serves as Assistant Secretary of the Trust.            

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

                                                        [Enlarge/Download Table]

                          INVESTMENT                                       FUND        DISTRIBUTION   
                           ADVISORY            ADMINISTRATION           ACCOUNTING        FEES --     
                             FEES                   FEES                   FEES      INVESTMENT CLASS 
                          ----------  --------------------------------  -----------  -----------------
                            ANNUAL                                                                    
                          FEE BEFORE                                                                  
                          VOLUNTARY                                                                   
                             FEE         FEES      SUB-ADMINISTRATION      FEES            FEES       
                          REDUCTIONS    WAIVED            FEES            WAIVED          WAIVED      
                          ----------  ----------   -------------------  -----------  -----------------
                                                                                                      
Growth and Income Fund...     0.70%   $       --         $230,909         $46,180          $   --     
Small Company Growth                                                                                  
  Fund...................     0.70%           --          171,767          34,352              --     
International Growth                                                                                  
  Fund...................     0.75%           --          130,488          26,096              --     
Index Equity Fund........     0.30%      252,337          210,347          63,104              --     
Short Term Bond Fund.....     0.50%           --           37,082           7,416           2,745     
Intermediate Bond Fund...     0.55%           --          218,884          43,774              --     
Income Fund..............     0.60%           --           63,352          12,670              --     
Intermediate Tax-Free                                                                                 
  Fund...................     0.50%           --           76,697          15,339              --     
Tax-Free Income Fund.....     0.55%           --           31,465           6,293              --     
Michigan Municipal Bond                                                                               
  Fund...................     0.45%           --           29,908           5,981           2,761     
Money Market Fund........     0.40%      238,210          170,166          51,050              --     
Michigan Municipal Money                                                                              
  Market Fund............     0.40%      125,922           62,997          23,624              --     
Government Money Market                                                                               
  Fund...................     0.40%       54,731           44,933          13,480              --     

4.  CAPITAL SHARE TRANSACTIONS                                                  

Transactions in shares of the Funds are summarized below:                       

                                                        [Enlarge/Download Table]

                                  GROWTH AND INCOME FUND      SMALL COMPANY GROWTH FUND   
                               ----------------------------  ---------------------------- 
                                SIX MONTHS                    SIX MONTHS                  
                                   ENDED       YEAR ENDED        ENDED       YEAR ENDED   
                               JUNE 30, 1999  DECEMBER 31,   JUNE 30, 1999  DECEMBER 31,  
                                (UNAUDITED)       1998        (UNAUDITED)       1998      
                               -------------  -------------  -------------  ------------- 
                                                                                          
DOLLAR AMOUNTS                                                                            
INSTITUTIONAL:                                                                            
  Shares issued............... $ 164,033,987  $ 227,159,369  $  75,621,311  $ 302,052,649 
  Reinvestment of                                                                         
    distributions.............     6,495,240     32,729,339      8,715,080     40,424,917 
  Shares redeemed.............  (131,188,920)  (246,102,212)  (216,284,338)  (184,973,716)
                               -------------  -------------  -------------  ------------- 
    Net increase (decrease)                                                               
      from Institutional                                                                  
      capital transactions....    39,340,307     13,786,496   (131,947,947)   157,503,850 
                               -------------  -------------  -------------  ------------- 
INVESTMENT:                                                                               
  Shares issued...............     6,581,788     14,780,302      2,531,050      8,768,844 
  Reinvestment of                                                                         
    distributions.............       831,102      4,118,060        479,211      2,517,754 
  Shares redeemed.............    (6,095,606)   (10,232,022)    (3,965,120)    (6,299,296)
                               -------------  -------------  -------------  ------------- 
    Net increase (decrease)                                                               
      from Investment capital                                                             
      transactions............     1,317,284      8,666,340       (954,859)     4,987,302 
                               -------------  -------------  -------------  ------------- 
    Total net increase                                                                    
      (decrease) from capital                                                             
      transactions............ $  40,657,591  $  22,452,836  $(132,902,806) $ 162,491,152 
                               -------------  -------------  -------------  ------------- 
                               -------------  -------------  -------------  ------------- 
SHARE ACTIVITY                                                                            
INSTITUTIONAL:                                                                            
  Shares issued...............     8,736,482     14,055,251      5,134,861     18,894,661 
  Reinvestment of                                                                         
    distributions.............       350,758      1,992,365        633,686      2,459,426 
  Shares redeemed.............    (6,980,320)   (15,006,273)   (14,549,309)   (11,327,584)
                               -------------  -------------  -------------  ------------- 
    Net increase (decrease)                                                               
      from Institutional                                                                  
      shares                                                                              
      transactions............     2,106,920      1,041,343     (8,780,762)    10,026,503 
                               -------------  -------------  -------------  ------------- 
INVESTMENT:                                                                               
  Shares issued...............       351,848        913,994        166,649        511,690 
  Reinvestment of                                                                         
    distributions.............        45,296        252,348         35,153        152,813 
  Shares redeemed.............      (325,622)      (634,252)      (269,373)      (383,678)
                               -------------  -------------  -------------  ------------- 
    Net increase (decrease)                                                               
      from Investment shares                                                              
      transactions............        71,522        532,090        (67,571)       280,825 
                               -------------  -------------  -------------  ------------- 
    Total net increase                                                                    
      (decrease) from shares                                                              
      transactions............     2,178,442      1,573,433     (8,848,333)    10,307,328 
                               -------------  -------------  -------------  ------------- 
                               -------------  -------------  -------------  ------------- 

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(CONTINUED) 

4.  CAPITAL SHARE TRANSACTIONS (CONTINUED)                                      

Transactions in shares of the Funds are summarized below:                       

                                                        [Enlarge/Download Table]

                                  INTERNATIONAL GROWTH FUND             INDEX EQUITY FUND        
                               -------------------------------   ------------------------------- 
                                 SIX MONTHS                        SIX MONTHS                    
                                   ENDED          YEAR ENDED         ENDED          YEAR ENDED   
                               JUNE 30, 1999     DECEMBER 31,    JUNE 30, 1999     DECEMBER 31,  
                                (UNAUDITED)          1998         (UNAUDITED)          1998      
                               --------------   --------------   --------------   -------------- 
                                                                                                 
DOLLAR AMOUNTS                                                                                   
INSTITUTIONAL:                                                                                   
  Shares issued...............  $  51,444,849   $  136,493,110    $  92,072,231   $  190,070,776 
  Reinvestment of                                                                                
    distributions.............     10,381,898       23,365,621        5,359,499        7,019,186 
  Shares redeemed.............    (82,413,621)    (161,041,176)     (97,404,689)    (178,461,700)
                               --------------   --------------   --------------   -------------- 
    Net increase (decrease)                                                                      
      from Institutional                                                                         
      capital transactions....    (20,586,874)      (1,182,445)          27,041       18,628,262 
                               --------------   --------------   --------------   -------------- 
INVESTMENT:                                                                                      
  Shares issued...............      1,633,921        7,181,444        8,078,146        8,289,279 
  Reinvestment of                                                                                
    distributions.............        495,543        1,132,738          278,225          334,605 
  Shares redeemed.............     (1,795,659)      (6,306,339)      (3,847,852)      (6,250,907)
                               --------------   --------------   --------------   -------------- 
    Net increase (decrease)                                                                      
      from Investment capital                                                                    
      transactions............        333,805        2,007,843        4,508,519        2,372,977 
                               --------------   --------------   --------------   -------------- 
    Total net increase                                                                           
      (decrease) from capital                                                                    
      transactions............  $ (20,253,069)  $      825,398    $   4,535,560   $   21,001,239 
                               --------------   --------------   --------------   -------------- 
                               --------------   --------------   --------------   -------------- 
SHARE ACTIVITY                                                                                   
INSTITUTIONAL:                                                                                   
  Shares issued...............      3,257,725        8,614,874        3,617,976        9,139,342 
  Reinvestment of                                                                                
    distributions.............        683,469        1,492,409          211,558          322,723 
  Shares redeemed.............     (5,226,005)      (9,986,982)      (3,839,080)      (8,478,378)
                               --------------   --------------   --------------   -------------- 
    Net increase (decrease)                                                                      
      from Institutional                                                                         
      shares transactions.....     (1,284,811)         120,301           (9,546)         983,687 
                               --------------   --------------   --------------   -------------- 
INVESTMENT:                                                                                      
  Shares issued...............        103,156          441,796          311,019          394,992 
  Reinvestment of                                                                                
    distributions.............         32,986           73,057           10,986           15,815 
  Shares redeemed.............       (115,296)        (389,582)        (150,884)        (293,283)
                               --------------   --------------   --------------   -------------- 
    Net increase (decrease)                                                                      
      from Investment shares                                                                     
      transactions............         20,846          125,271          171,121          117,524 
                               --------------   --------------   --------------   -------------- 
    Total net increase                                                                           
      (decrease) from shares                                                                     
      transactions............     (1,263,965)         245,572          161,575        1,101,211 
                               --------------   --------------   --------------   -------------- 
                               --------------   --------------   --------------   -------------- 

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

4.  CAPITAL SHARE TRANSACTIONS (CONTINUED)                                      

Transactions in shares of the Funds are summarized below:                       

                                                        [Enlarge/Download Table]

                               SHORT TERM BOND FUND            INTERMEDIATE BOND FUND                 INCOME FUND           
                          ------------------------------   -------------------------------   ------------------------------ 
                            SIX MONTHS                       SIX MONTHS                        SIX MONTHS                   
                              ENDED         YEAR ENDED         ENDED          YEAR ENDED         ENDED         YEAR ENDED   
                          JUNE 30, 1999    DECEMBER 31,    JUNE 30, 1999     DECEMBER 31,    JUNE 30, 1999    DECEMBER 31,  
                           (UNAUDITED)         1998         (UNAUDITED)          1998         (UNAUDITED)         1998      
                          --------------   -------------   --------------   --------------   --------------   ------------- 
                                                                                                                            
DOLLAR AMOUNTS                                                                                                              
INSTITUTIONAL:                                                                                                              
  Shares issued..........  $  30,182,321   $  46,983,304   $  113,010,765   $  338,390,247    $  90,668,588   $  72,628,587 
  Reinvestment of                                                                                                           
    distributions........      2,317,570       4,494,488       13,253,717       23,782,242        1,950,192       4,483,402 
  Shares redeemed........    (25,773,225)    (52,355,665)    (146,037,040)    (250,453,733)     (21,621,124)    (77,077,231)
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Net increase                                                                                                            
      (decrease) from                                                                                                       
      Institutional                                                                                                         
      capital                                                                                                               
      transactions.......      6,726,666        (877,873)     (19,772,558)     111,718,756       70,997,656          34,758 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
INVESTMENT:                                                                                                                 
  Shares issued..........        310,565       1,555,661        2,343,801        8,360,353        3,156,935       7,872,571 
  Reinvestment of                                                                                                           
    distributions........        139,044         372,460          308,482          489,509          305,475         742,082 
  Shares redeemed........     (1,307,042)     (3,255,507)      (2,963,811)      (3,655,060)      (1,782,751)     (3,592,396)
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Net increase                                                                                                            
      (decrease) from                                                                                                       
      Investment capital                                                                                                    
      transactions.......       (857,433)     (1,327,386)        (311,528)       5,194,802        1,679,659       5,022,257 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Total net increase                                                                                                      
      (decrease) from                                                                                                       
      capital                                                                                                               
      transactions.......  $   5,869,233   $  (2,205,259)  $  (20,084,086)  $  116,913,558    $  72,677,315   $   5,057,015 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
SHARE ACTIVITY                                                                                                              
INSTITUTIONAL:                                                                                                              
  Shares issued..........      3,107,994       4,796,963       11,450,052       33,667,668        9,208,026       6,983,209 
  Reinvestment of                                                                                                           
    distributions........        239,641         460,770        1,350,511        2,384,021          196,347         433,651 
  Shares redeemed........     (2,660,232)     (5,351,943)     (14,893,672)     (25,053,433)      (2,165,821)     (7,372,911)
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Net increase                                                                                                            
      (decrease) from                                                                                                       
      Institutional                                                                                                         
      shares                                                                                                                
      transactions.......        687,403         (94,210)      (2,093,109)      10,998,256        7,238,552          43,949 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
INVESTMENT:                                                                                                                 
  Shares issued..........         32,100         159,007          237,566          833,731          320,886         757,461 
  Reinvestment of                                                                                                           
    distributions........         14,388          38,229           31,369           48,917           30,760          71,851 
  Shares redeemed........       (134,655)       (333,161)        (302,666)        (364,011)        (178,973)       (344,684)
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Net increase                                                                                                            
      (decrease) from                                                                                                       
      Investment shares                                                                                                     
      transactions.......        (88,167)       (135,925)         (33,731)         518,637          172,673         484,628 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
    Total net increase                                                                                                      
      (decrease) from                                                                                                       
      shares                                                                                                                
      transactions.......        599,236        (230,135)      (2,126,840)      11,516,893        7,411,225         528,577 
                          --------------   -------------   --------------   --------------   --------------   ------------- 
                          --------------   -------------   --------------   --------------   --------------   ------------- 

112 

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

4.  CAPITAL SHARE TRANSACTIONS (CONTINUED)                                      

Transactions in shares of the Funds are summarized below:                       

                                                        [Enlarge/Download Table]

                                                                                                  MICHIGAN MUNICIPAL       
                            INTERMEDIATE TAX-FREE FUND          TAX-FREE INCOME FUND                  BOND FUND            
                          ------------------------------   ------------------------------   ------------------------------ 
                            SIX MONTHS                       SIX MONTHS                       SIX MONTHS                   
                              ENDED         YEAR ENDED         ENDED         YEAR ENDED         ENDED         YEAR ENDED   
                          JUNE 30, 1999    DECEMBER 31,    JUNE 30, 1999    DECEMBER 31,    JUNE 30, 1999    DECEMBER 31,  
                           (UNAUDITED)         1998         (UNAUDITED)         1998         (UNAUDITED)         1998      
                          --------------   -------------   --------------   -------------   --------------   ------------- 
                                                                                                                           
DOLLAR AMOUNTS                                                                                                             
INSTITUTIONAL:                                                                                                             
  Shares issued..........  $  59,069,094   $  66,076,832    $  14,481,287   $  32,537,497    $  13,694,053   $  40,230,617 
  Reinvestment of                                                                                                          
    distributions........        174,430         208,477           87,970         111,411           43,796          47,874 
  Shares redeemed........    (32,978,299)    (47,473,584)     (14,114,347)    (22,259,614)     (15,174,603)    (34,650,281)
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Net increase                                                                                                           
      (decrease) from                                                                                                      
      Institutional                                                                                                        
      capital                                                                                                              
      transactions.......     26,265,225      18,811,725          454,910      10,389,294       (1,436,754)      5,628,210 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
INVESTMENT:                                                                                                                
  Shares issued..........      1,874,827       2,087,564          657,165       1,402,556        1,185,601       3,062,612 
  Reinvestment of                                                                                                          
    distributions........         58,097         116,321           34,837          77,686           70,193         129,291 
  Shares redeemed........     (1,185,586)     (1,726,071)        (391,361)     (1,270,150)      (1,711,704)     (1,682,977)
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Net increase                                                                                                           
      (decrease) from                                                                                                      
      Investment capital                                                                                                   
      transactions.......        747,338         477,814          300,641         210,092         (455,910)      1,508,926 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Total net increase                                                                                                     
      (decrease) from                                                                                                      
      capital                                                                                                              
      transactions.......  $  27,012,563   $  19,289,539    $     755,551   $  10,599,386    $  (1,892,664)  $   7,137,136 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
SHARE ACTIVITY                                                                                                             
INSTITUTIONAL:                                                                                                             
  Shares issued..........      5,587,742       6,151,853        1,360,623       3,037,158        1,336,784       3,919,445 
  Reinvestment of                                                                                                          
    distributions........         16,370          19,474            8,290          10,424            4,292           4,681 
  Shares redeemed........     (3,078,172)     (4,422,430)      (1,318,486)     (2,072,941)      (1,478,149)     (3,382,841)
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Net increase                                                                                                           
      (decrease) from                                                                                                      
      Institutional                                                                                                        
      shares                                                                                                               
      transactions.......      2,525,940       1,748,897           50,427         974,641         (137,073)        541,285 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
INVESTMENT:                                                                                                                
  Shares issued..........        176,369         194,674           61,965         130,884          115,818         298,776 
  Reinvestment of                                                                                                          
    distributions........          5,447          10,869            3,269           7,256            6,869          12,655 
  Shares redeemed........       (110,848)       (161,174)         (36,742)       (118,616)        (166,755)       (164,507)
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Net increase                                                                                                           
      (decrease) from                                                                                                      
      Investment shares                                                                                                    
      transactions.......         70,968          44,369           28,492          19,524          (44,068)        146,924 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
    Total net increase                                                                                                     
      (decrease) from                                                                                                      
      share                                                                                                                
      transactions.......      2,596,908       1,793,266           78,919         994,165         (181,141)        688,209 
                          --------------   -------------   --------------   -------------   --------------   ------------- 
                          --------------   -------------   --------------   -------------   --------------   ------------- 

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Kent Funds                                

                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

4.  CAPITAL SHARE TRANSACTIONS (CONTINUED)                                      

Transactions in shares of the Funds are summarized below:                       

                                                        [Enlarge/Download Table]

                                                               MICHIGAN MUNICIPAL                GOVERNMENT          
                                MONEY MARKET FUND              MONEY MARKET FUND             MONEY MARKET FUND       
                          ------------------------------  ----------------------------  ---------------------------- 
                           SIX MONTHS                      SIX MONTHS                    SIX MONTHS                  
                              ENDED        YEAR ENDED         ENDED       YEAR ENDED        ENDED       YEAR ENDED   
                          JUNE 30, 1999   DECEMBER 31,    JUNE 30, 1999  DECEMBER 31,   JUNE 30, 1999  DECEMBER 31,  
                           (UNAUDITED)        1998         (UNAUDITED)       1998        (UNAUDITED)       1998      
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
                                                                                                                     
DOLLAR AMOUNTS                                                                                                       
INSTITUTIONAL:                                                                                                       
  Shares issued.......... $ 661,728,165  $ 1,330,695,260  $ 216,052,484  $ 559,420,529  $ 338,854,359  $ 525,385,514 
  Reinvestment of                                                                                                    
    distributions........     1,422,299        2,064,457        168,119        358,257      2,783,741      5,375,385 
  Shares redeemed........  (716,340,419)  (1,113,735,038)  (224,573,909)  (448,191,138)  (311,607,347)  (458,462,125)
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
    Net increase                                                                                                     
      (decrease) from                                                                                                
      Institutional                                                                                                  
      capital                                                                                                        
      transactions.......   (53,189,955)     219,024,679     (8,353,306)   111,587,648     30,030,753     72,298,774 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
INVESTMENT:                                                                                                          
  Shares issued..........     4,374,612       19,973,693      3,233,291      5,192,300         50,568        124,496 
  Reinvestment of                                                                                                    
    distributions........        52,461          136,660          8,347         10,702          2,219          1,547 
  Shares redeemed........    (6,354,286)     (17,561,598)    (2,836,248)    (5,146,223)       (13,032)       (34,968)
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
    Net increase                                                                                                     
      (decrease) from                                                                                                
      Investment capital                                                                                             
      transactions.......    (1,927,213)       2,548,755        405,390         56,779         39,755         91,075 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
    Total net increase                                                                                               
      (decrease) from                                                                                                
      capital                                                                                                        
      transactions....... $ (55,117,168) $   221,573,434  $  (7,947,916) $ 111,644,427  $  30,070,508  $  72,389,849 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
SHARE ACTIVITY                                                                                                       
INSTITUTIONAL:                                                                                                       
  Shares issued..........   661,728,165    1,330,695,260    216,052,484    559,420,529    338,854,359    525,385,514 
  Reinvestment of                                                                                                    
    distributions........     1,422,299        2,064,457        168,119        358,257      2,783,741      5,375,385 
  Shares redeemed........  (716,340,418)  (1,113,735,038)  (224,573,909)  (448,191,138)  (311,607,347)  (458,462,125)
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
    Net increase                                                                                                     
      (decrease) from                                                                                                
      Institutional                                                                                                  
      shares                                                                                                         
      transactions.......   (53,189,954)     219,024,679     (8,353,306)   111,587,648     30,030,753     72,298,774 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
INVESTMENT:                                                                                                          
  Shares issued..........     4,374,612       19,973,693      3,233,291      5,192,299         50,568        124,496 
  Reinvestment of                                                                                                    
    distributions........        52,461          136,660          8,347         10,702          2,219          1,547 
  Shares redeemed........    (6,354,286)     (17,561,598)    (2,836,248)    (5,146,223)       (13,032)       (34,968)
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
    Net increase                                                                                                     
      (decrease) from                                                                                                
      Investment shares                                                                                              
      transactions ......    (1,927,213)       2,548,755        405,390         56,778         39,755         91,075 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
                            (55,117,167)     221,573,434     (7,947,916)   111,644,426     30,070,508     72,389,849 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 
                          -------------  ---------------  -------------  -------------  -------------  ------------- 

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

5.  PURCHASES AND SALES OF SECURITIES                                           

The cost of purchases and proceeds from sales of securities, excluding      
short-term investments, for the six months ended June 30, 1999 were as follows: 

                                                                [Download Table]

FUNDS                                      PURCHASES      SALES   
----------------------------------------  -----------  -----------
                                                                  
Growth and Income Fund..................  $43,423,209  $50,614,003
Small Company Growth Fund...............   52,202,415  179,073,266
International Growth Fund...............   26,195,681   74,857,983
Index Equity Fund.......................   38,708,174   39,696,899
Short Term Bond Fund....................   68,823,044   63,579,480
Intermediate Bond Fund..................  456,697,818  485,757,159
Income Fund.............................  209,654,932  133,090,693
Intermediate Tax-Free Fund..............   92,860,554  100,498,284
Tax-Free Income Fund....................   65,012,403   54,718,362
Michigan Municipal Bond Fund............    8,394,796   12,795,564

6.  RISKS ASSOCIATED WITH FOREIGN SECURITIES AND CURRENCIES                     

The Growth and Income Fund and the International Growth Fund can purchase   
securities of foreign issuers. Investing in securities of foreign issuers       
involves special risks not typically associated with investing in securities of 
U.S. issuers.                                                                   

The risks include devaluation of currencies and future adverse political and
economic developments. Moreover, securities of many foreign issuers and their   
markets may be less liquid and their prices more volatile than those of         
securities of comparable U.S. issuers.                                          

7.  CONCENTRATION OF CREDIT RISK                                                

The Michigan Municipal Money Market Fund and Michigan Municipal Bond Fund   
invest primarily in debt obligations issued by the State of Michigan and its    
respective political subdivisions, agencies and public authorities to obtain    
funds for various public purposes. The Funds are more susceptible to economic   
and political factors adversely affecting issuers of Michigan specific municipal
securities than are municipal bond funds that are not concentrated in these     
issuers to the same extent.                                                     

 The Intermediate Tax-Free Fund, Tax-Free Income Fund, Michigan Municipal Bond
Fund and the Michigan Municipal Money Market Fund had the following             
concentrations by industry sector at June 30, 1999 (as a percentage of total    
investments):                                                                   

                                                                [Download Table]

                                                                      MICHIGAN 
                                                          MICHIGAN    MUNICIPAL
                                INTERMEDIATE   TAX-FREE   MUNICIPAL     MONEY  
                                  TAX-FREE      INCOME      BOND       MARKET  
                                    FUND         FUND       FUND        FUND   
                                ------------   --------   ---------   ---------
                                                                               
Airport.......................       3.23%        2.69%      1.90%       1.36% 
Development...................       3.51%        1.74%      5.16%      58.35% 
Education.....................       0.49%        0.97%        --          --  
Facilities....................       7.24%        5.24%      4.37%       1.14% 
General Obligation............      30.14%       30.28%     10.71%      17.60% 
Higher Education..............       4.61%        6.48%      5.26%       1.55% 
Housing Development...........       0.32%        1.01%      2.31%       2.31% 
Law Enforcement...............         --           --       1.72%         --  
Medical.......................       1.98%        2.84%     18.78%       2.17% 
Miscellaneous Facilities......         --           --       0.85%         --  
Multifamily Housing...........         --         1.06%        --        1.33% 
Mutual Funds..................       1.45%        2.16%      1.56%       0.45% 
Nursing Homes.................         --           --       1.35%         --  
Pollution.....................       2.51%          --       2.60%       7.03% 
Power.........................       7.83%        8.43%      2.43%         --  
School District...............      11.34%       13.32%     33.13%       5.30% 
Single Family Housing.........       0.16%        2.82%        --        0.37% 
Student Loan..................       0.72%          --         --          --  
Transportation................       9.07%       11.70%      5.22%       0.63% 
Utilities.....................      11.12%        7.71%      2.60%       0.41% 
Water.........................       4.28%        1.55%        --          --  
                                    -----      --------   ---------   ---------
                                      100%         100%       100%        100% 
                                    -----      --------   ---------   ---------
                                    -----      --------   ---------   ---------

8.  COMMON TRUST FUND CONVERSIONS:                                              

On December 3, 1998, the net assets of certain common trust funds managed by
the Investment Adviser were exchanged in a tax-free conversion for Institutional
shares of the corresponding Kent Funds. The following is a summary of shares    
issued, net assets converted, net assets value per share issued and unrealized  
appreciation of assets acquired as of the conversion date:                      

                                                        [Enlarge/Download Table]

                                SHARES    NET ASSETS    NET ASSET VALUE    UNREALIZED  
                                ISSUED     CONVERTED   PER SHARE ISSUED   APPRECIATION 
                               ---------  -----------  -----------------  -------------
                                                                                       
Growth and Income Fund........ 3,222,690  $54,431,232        $16.89        $ 17,190,675
Intermediate Bond Fund........ 9,258,351   93,787,091         10.13           3,684,581
Intermediate Tax-Free Fund.... 1,042,405   11,247,552         10.79             405,284

9.  SHAREHOLDER VOTE:                                                           

A meeting of the Shareholders of the Limited Term Tax-Free Fund was held on 
March 24, 1999, to consider a Plan of                                           

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                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(CONTINUED) 

Reorganization whereby the assets and liabilities of the Limited Term Tax-Free  
Fund would be transferred to the Intermediate Tax-Free Fund. The shareholders of
the Limited Term Tax-Free Fund approved the proposal by the following votes:    

                                                                [Download Table]
                                                                 
Yes...............................................  3,125,329,848
No................................................              0
Abstentions.......................................              0

Shareholders of the Limited Term Tax-Free Fund became shareholders of the   
Intermediate Tax-Free Fund upon consummation of the reorganization on March 30, 
1999.                                                                           

                                                        [Enlarge/Download Table]

                                         BEFORE REORGANIZATION       AFTER REORGANIZATION 
                                    -------------------------------  ---------------------
                                     LIMITED TERM     INTERMEDIATE       INTERMEDIATE     
                                    TAX-FREE FUND    TAX-FREE FUND       TAX-FREE FUND    
                                    --------------   --------------  ---------------------
                                                                                          
Shares (000).......................       3,152              30,133            30,428     
Net Assets (000)...................    $ 32,045        $    322,314       $   325,411     
Net Asset Value....................    $  10.17        $      10.70       $     10.69     
Unrealized Appreciation............    $667,311        $ 17,300,212       $17,283,020     

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
EQUITY FUNDS                                                                    
INSTITUTIONAL SHARES                                                            
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                               INCOME (LOSS) FROM INVESTMENT                                                            
                                        OPERATIONS                                                                      
                               -----------------------------                  LESS DIVIDENDS AND DISTRIBUTIONS FROM     
                                           NET REALIZED AND               ----------------------------------------------
                                           UNREALIZED GAINS                                       NET REALIZED          
                                              (LOSSES) ON       TOTAL                               GAINS ON            
                                             INVESTMENTS,       INCOME                            INVESTMENTS,     IN   
                    NET ASSET              FUTURES CONTRACTS    (LOSS)                IN EXCESS     FUTURES      EXCESS 
                     VALUE,       NET         AND FOREIGN        FROM        NET        OF NET     CONTRACTS     OF NET 
                    BEGINNING  INVESTMENT      CURRENCY       INVESTMENT  INVESTMENT  INVESTMENT  AND FOREIGN   REALIZED
                    OF PERIOD    INCOME      TRANSLATIONS     OPERATIONS    INCOME      INCOME      CURRENCY     GAINS  
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
GROWTH AND                                                                                                              
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNVEX                                                                                                                   
Year ended     1994  $10.91       0.31           (0.26)          0.05       (0.31)      **           (0.15)       --    
Year ended     1995  $10.50       0.33            3.28           3.61       (0.33)      --           (0.53)       --    
Year ended     1996  $13.25       0.30            2.16           2.46       (0.30)      --           (1.51)       --    
Year ended     1997  $13.90       0.25            3.04           3.29       (0.25)      --           (1.39)       --    
Year ended     1998  $15.55       0.13            4.03           4.16       (0.13)      (0.01)       (1.54)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $18.03       0.06            1.97           2.03       (0.05)      --           (0.28)       --    
------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNEEX                                                                                                                   
Year ended     1994  $12.50       0.10           (0.10)         --          (0.09)      (0.01)       (0.41)       --    
Year ended     1995  $11.99       0.10            2.64           2.74       (0.10)      --           (0.81)       --    
Year ended     1996  $13.82       0.12            2.55           2.67       (0.12)      --           (0.72)       --    
Year ended     1997  $15.65       0.04            4.19           4.23       (0.04)      (0.02)       (1.43)       --    
Year ended     1998  $18.39       0.03           (1.08)         (1.05)      (0.03)      --           (1.85)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $15.46       0.02            1.46           1.47       (0.02)      --           (0.33)       --    
------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNINX                                                                                                                   
Year ended     1994  $12.84       0.12            0.61           0.73       (0.07)      (0.03)       (0.41)       --    
Year ended     1995  $13.06       0.13            1.54           1.67       (0.13)      (0.11)       (0.31)       --    
Year ended     1996  $14.18       0.13            0.70           0.83       (0.10)      (0.02)       (0.13)      (0.01) 
Year ended     1997  $14.75       0.11            0.26           0.37       (0.09)      (0.06)       (0.07)      (0.01) 
Year ended     1998  $14.89       0.14            2.48           2.62       (0.07)      (0.12)       (1.41)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $15.91       0.10            0.67           0.77       (0.04)      --           (0.62)       --    
------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KNIEX                                                                                                                   
Year ended     1994  $11.04       0.25           (0.15)          0.10       (0.26)      --           (0.20)       --    
Year ended     1995  $10.68       0.26            3.44           3.70       (0.25)      --           (1.57)       --    
Year ended     1996  $12.56       0.26            2.47           2.73       (0.26)      --           (0.28)      (0.04) 
Year ended     1997  $14.71       0.25            4.50           4.75       (0.25)      --           (0.05)      (0.02) 
Year ended     1998  $19.14       0.24            5.14           5.38       (0.24)      --           (0.04)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $24.24       0.12            2.83           2.95       (0.11)      --           (0.10)       --    
------------------------------------------------------------------------------------------------------------------------



                                                                         RATIOS/SUPPLEMENTAL DATA:                      
                                                         ----------------------------------------------------------     
                                                                                   RATIO OF                             
                                           NET                                       NET                                
                    TOTAL         NET     ASSET          NET ASSETS,   RATIO OF   INVESTMENT   RATIO OF                 
                  DIVIDENDS    CHANGE IN  VALUE,           END OF      EXPENSES     INCOME     EXPENSES    PORTFOLIO    
                     AND       NET ASSET  END OF TOTAL     PERIOD     TO AVERAGE  TO AVERAGE  TO AVERAGE   TURNOVER     
                DISTRIBUTIONS    VALUE    PERIOD RETURN    (000'S)    NET ASSETS  NET ASSETS  NET ASSETS*  RATE(1)      
                                                                                                                        
--------------                                                                                                          
GROWTH AND                                                                                                              
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNVEX                                                                                                                   
Year ended          (0.46)       (0.41)   $10.50 0.51%    $  308,825    0.98%       3.04%         ***        28%        
Year ended          (0.86)        2.75    $13.25 34.91%   $  401,371    0.94%       2.73%         ***        58%        
Year ended          (1.81)        0.65    $13.90 19.47%   $  500,857    0.95%       2.18%        0.95%       39%        
Year ended          (1.64)        1.65    $15.55 24.14%   $  697,973    0.92%       1.61%        0.93%       88%        
Year ended          (1.68)        2.48    $18.03 28.07%   $  827,828    0.93%       0.77%        0.94%       20%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.33)        1.70    $19.73 11.38%^^  $  947,533   0.92%^      0.65%^       0.93%^       9%        
--------------                                                                                                          
SMALL COMPANY                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNEEX                                                                                                                   
Year ended          (0.51)       (0.51)   $11.99 0.06%    $  304,179    0.98%       0.79%         ***        20%        
Year ended          (0.91)        1.83    $13.82 23.75%   $  450,072    0.97%       0.83%         ***        30%        
Year ended          (0.84)        1.83    $15.65 19.56%   $  544,081    0.96%       0.78%        0.96%       16%        
Year ended          (1.49)        2.74    $18.39 27.94%   $  719,998    0.93%       0.24%        0.94%       32%        
Year ended          (1.88)       (2.93)   $15.46 (6.15%)  $  760,335    0.94%       0.18%        0.95%       41%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.35)        1.12    $16.58 9.97%^^  $  669,928    0.94%^      0.22%^       0.95%^       8%        
--------------                                                                                                          
INTERNATIONAL                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNINX                                                                                                                   
Year ended          (0.51)        0.22    $13.06 5.73%    $  178,186    1.22%       0.87%         ***        20%        
Year ended          (0.55)        1.12    $14.18 13.00%   $  286,545    1.17%       1.35%         ***         6%        
Year ended          (0.26)        0.57    $14.75 5.87%    $  387,799    1.09%       0.97%        1.09%       13%        
Year ended          (0.23)        0.14    $14.89 2.54%    $  492,598    1.05%       0.80%        1.06%        3%        
Year ended          (1.60)        1.02    $15.91 17.92%   $  528,500    1.05%       0.87%        1.06%       22%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.66)        0.11    $16.02 5.08%^^  $  511,414    1.02%^      1.35%^       1.01%^       5%        
--------------                                                                                                          
INDEX EQUITY                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KNIEX                                                                                                                   
Year ended          (0.46)       (0.36)   $10.68 0.86%    $  245,550    0.58%       2.32%        0.58%       50%        
Year ended          (1.82)        1.88    $12.56 36.23%   $  183,877    0.56%       2.14%        0.56%        3%        
Year ended          (0.58)        2.15    $14.71 22.18%   $  243,438    0.49%       1.91%        0.59%        2%        
Year ended          (0.32)        4.43    $19.14 32.55%   $  590,241    0.43%       1.44%        0.54%        1%        
Year ended          (0.28)        5.10    $24.24 28.26%   $  771,147    0.42%       1.10%        0.55%       12%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.21)        2.74    $26.98 12.23%^^  $  858,271   0.41%^      0.96%^       0.54%^       5%        
--------------                                                                                                          

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
**   Amount is less than $0.005.                                                                                           
***  During the period, there were no waivers and/or reimbursements.                                                       
(1)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               

                                                                             117

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
EQUITY FUNDS                                                                    
INVESTMENT SHARES                                                               
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                               Income (Loss) from Investment                                                            
                                        Operations                            Less Dividends and Distributions from     
                               -----------------------------              ----------------------------------------------
                                           Net Realized and                                       Net Realized          
                                           Unrealized Gains                                         Gains on            
                                              (Losses) on       Total                             Investments,          
                                             Investments,       Income                              Futures        In   
                    Net Asset     Net      Futures Contracts    (Loss)                In Excess    Contracts     Excess 
                     Value,    Investment     and Foreign        from        Net        of Net    and Foreign    of Net 
                    Beginning    Income        Currency       Investment  Investment  Investment    Currency    Realized
                    of Period    (Loss)      Translations     Operations    Income      Income    Translations   Gains  
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
GROWTH AND                                                                                                              
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNVIX                                                                                                                   
Year ended     1994  $10.87       0.32           (0.27)          0.05       (0.31)         **        (0.15)       --    
Year ended     1995  $10.46       0.30            3.26           3.56       (0.30)      --           (0.53)       --    
Year ended     1996  $13.19       0.26            2.15           2.41       (0.26)      (0.02)       (1.51)       --    
Year ended     1997  $13.81       0.21            3.02           3.23       (0.21)      --           (1.39)       --    
Year ended     1998  $15.44       0.08            4.00           4.08       (0.08)      (0.02)       (1.54)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $17.88       0.04            1.96           2.00       (0.03)      --           (0.28)       --    
------------------------------------------------------------------------------------------------------------------------
SMALL COMPANY                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNEMX                                                                                                                   
Year ended     1994  $12.49       0.10           (0.11)         (0.01)      (0.08)      (0.01)       (0.41)       --    
Year ended     1995  $11.98       0.07            2.64           2.71       (0.07)      --           (0.81)       --    
Year ended     1996  $13.81       0.07            2.54           2.61       (0.08)      (0.01)       (0.72)       --    
Year ended     1997  $15.61      --               4.19           4.19       --          (0.04)       (1.43)       --    
Year ended     1998  $18.33      (0.01)          (1.08)         (1.09)      --          --           (1.85)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $15.39      (0.02)           1.47           1.45       --          --           (0.33)       --    
------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNIVX                                                                                                                   
Year ended     1994  $12.81       0.14            0.56           0.70       (0.07)      (0.03)       (0.41)       --    
Year ended     1995  $13.00       0.14            1.50           1.64       (0.09)      (0.11)       (0.31)       --    
Year ended     1996  $14.13       0.12            0.66           0.78       (0.08)      --           (0.14)       --    
Year ended     1997  $14.69       0.08            0.25           0.33       (0.06)      (0.09)       (0.07)      (0.01) 
Year ended     1998  $14.79       0.10            2.46           2.56       --          (0.19)       (1.41)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $15.75       0.09            0.65           0.74       (0.04)      --           (0.62)       --    
------------------------------------------------------------------------------------------------------------------------
INDEX EQUITY                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KNIOX                                                                                                                   
Year ended     1994  $11.07       0.26           (0.17)          0.09       (0.26)      --           (0.20)       --    
Year ended     1995  $10.70       0.23            3.44           3.67       (0.23)      --           (1.57)       --    
Year ended     1996  $12.57       0.22            2.48           2.70       (0.22)      (0.01)       (0.32)       --    
Year ended     1997  $14.72       0.20            4.51           4.71       (0.20)      (0.01)       (0.06)      (0.01) 
Year ended     1998  $19.15       0.18            5.14           5.32       (0.18)      --           (0.04)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $24.25       0.09            2.83           2.92       (0.08)      --           (0.10)       --    
------------------------------------------------------------------------------------------------------------------------



                                                                         Ratios/Supplemental Data:                      
                                                         ----------------------------------------------------------     
                                                                                   Ratio of                             
                                                                                     Net                                
                                           Net                                    Investment                            
                    Total         Net     Asset          Net Assets,   Ratio of     Income     Ratio of                 
                  Dividends    Change in  Value,           End of      Expenses     (Loss)     Expenses    Portfolio    
                     and       Net Asset  End of Total     Period     to Average  to Average  to Average   Turnover     
                Distributions    Value    Period Return(1)   (000's)  Net Assets  Net Assets  Net Assets*  Rate(2)      
                                                                                                                        
--------------                                                                                                          
GROWTH AND                                                                                                              
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNVIX                                                                                                                   
Year ended          (0.46)       (0.41)   $10.46 0.50%    $  8,005      0.98%       3.03%         ***        28%        
Year ended          (0.83)        2.73    $13.19 34.61%   $ 11,079      1.18%       2.48%         ***        58%        
Year ended          (1.79)        0.62    $13.81 19.14%   $ 15,063      1.09%       1.77%        1.09%       39%        
Year ended          (1.60)        1.63    $15.44 23.89%   $ 35,343      1.17%       1.31%        1.18%       88%        
Year ended          (1.64)        2.44    $17.88 27.68%   $ 50,458      1.18%       0.50%        1.19%       20%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.31)        1.69    $19.57 11.28%^^  $ 56,607     1.17%^      0.40%^       1.18%^       9%        
--------------                                                                                                          
SMALL COMPANY                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNEMX                                                                                                                   
Year ended          (0.50)       (0.51)   $11.98 (0.08%)  $  8,433      0.98%       0.79%         ***        20%        
Year ended          (0.88)        1.83    $13.81 23.47%   $ 10,955      1.20%       0.59%         ***        30%        
Year ended          (0.81)        1.80    $15.61 19.16%   $ 14,436      1.21%       0.53%        1.21%       16%        
Year ended          (1.47)        2.72    $18.33 27.71%   $ 22,784      1.18%      (0.01%)       1.19%       32%        
Year ended          (1.85)       (2.94)   $15.39 (6.40%)  $ 23,455      1.19%      (0.07%)       1.20%       41%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.33)        1.12    $16.51 9.89%^^  $ 24,036      1.19%^     (0.03%)^      1.20%^       8%        
--------------                                                                                                          
INTERNATIONAL                                                                                                           
GROWTH FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
KNIVX                                                                                                                   
Year ended          (0.51)        0.19    $13.00 5.51%    $  6,539      1.25%       0.81%         ***        20%        
Year ended          (0.51)        1.13    $14.13 12.86%   $  7,548      1.40%       1.11%         ***         6%        
Year ended          (0.22)        0.56    $14.69 5.57%    $  8,799      1.34%       0.74%        1.34%       13%        
Year ended          (0.23)        0.10    $14.79 2.25%    $  9,780      1.30%       0.53%        1.31%        3%        
Year ended          (1.60)        0.96    $15.75 17.60%   $ 12,390      1.30%       0.59%        1.31%       22%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.66)        0.08    $15.83 4.92%^^  $ 12,782      1.27%^      1.13%^       1.28%^       5%        
--------------                                                                                                          
INDEX EQUITY                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KNIOX                                                                                                                   
Year ended          (0.46)       (0.37)   $10.70 0.75%    $  4,736      0.60%       2.30%        0.60%       50%        
Year ended          (1.80)        1.87    $12.57 35.81%   $  6,612      0.80%       1.86%        0.81%        3%        
Year ended          (0.55)        2.15    $14.72 21.92%   $  9,925      0.74%       1.67%        0.84%        2%        
Year ended          (0.28)        4.43    $19.15 32.24%   $ 27,922      0.68%       1.20%        0.79%        1%        
Year ended          (0.22)        5.10    $24.25 27.93%   $ 38,205      0.67%       0.85%        0.80%       12%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.18)        2.74    $26.99 12.09%^^  $ 47,151     0.66%^      0.71%^       0.79%^       5%        
--------------                                                                                                          

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
**   Amount is less than $0.005.                                                                                           
***  During the period, there were no waivers and/or reimbursements.                                                       
(1)  Calculation does not include sales charge. Effective May 1, 1997, the Investment Shares were not assessed a sales     
     charge.                                                                                                               
(2)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               

118                                                                             

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
BOND FUNDS                                                                      
INSTITUTIONAL SHARES                                                            
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                    INCOME (LOSS) FROM                      LESS DIVIDENDS AND DISTRIBUTIONS                 
                                   INVESTMENT OPERATIONS        TOTAL                     FROM                               
                               -----------------------------    INCOME    ------------------------------------               
                    NET ASSET              NET REALIZED AND     (LOSS)                IN EXCESS                     TOTAL    
                     VALUE,       NET      UNREALIZED GAINS      FROM        NET        OF NET    NET REALIZED    DIVIDENDS  
                    BEGINNING  INVESTMENT     (LOSSES) ON     INVESTMENT  INVESTMENT  INVESTMENT    GAINS ON         AND     
                    OF PERIOD    INCOME       INVESTMENTS     OPERATIONS    INCOME      INCOME    INVESTMENTS   DISTRIBUTIONS
                                                                                                                             
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM                                                                                                                   
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNLMX                                                                                                                        
Year ended     1994  $ 9.91       0.48           (0.38)          0.10       (0.49)         **        --             (0.49)   
Year ended     1995  $ 9.52       0.55            0.43           0.98       (0.54)      --           --             (0.54)   
Year ended     1996  $ 9.96       0.61           (0.21)          0.40       (0.61)      --           --             (0.61)   
Year ended     1997  $ 9.75       0.61         --                0.61       (0.61)      --           --             (0.61)   
Year ended     1998  $ 9.75       0.56            0.02           0.58       (0.56)      --           --             (0.56)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $ 9.77       0.27           (0.18)          0.09       (0.27)      --           --             (0.27)   
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE                                                                                                                 
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNFIX                                                                                                                        
Year ended     1994  $10.18       0.56           (0.88)         (0.32)      (0.54)      (0.01)       (0.02)         (0.57)   
Year ended     1995  $ 9.29       0.65            0.81           1.46       (0.63)      --           --             (0.63)   
Year ended     1996  $10.12       0.60           (0.32)          0.28       (0.61)      (0.03)       --             (0.64)   
Year ended     1997  $ 9.76       0.59            0.14           0.73       (0.59)      --           --             (0.59)   
Year ended     1998  $ 9.90       0.58            0.16           0.74       (0.58)      --           --             (0.58)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.06       0.28           (0.44)         (0.17)      (0.28)      --           --             (0.28)   
-----------------------------------------------------------------------------------------------------------------------------
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
KNIIX                                                                                                                        
Year ended     1995  $10.00       0.55            0.92           1.47       (0.54)      --           (0.09)         (0.63)   
Year ended     1996  $10.84       0.66           (0.56)          0.10       (0.65)      (0.10)       (0.03)         (0.78)   
Year ended     1997  $10.16       0.68            0.34           1.02       (0.68)      --           (0.20)         (0.88)   
Year ended     1998  $10.30       0.65            0.27           0.92       (0.65)      --           (0.24)         (0.89)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.33       0.30           (0.67)         (0.37)      (0.30)      --           (0.01)         (0.31)   
-----------------------------------------------------------------------------------------------------------------------------


                                                          RATIOS/SUPPLEMENTAL DATA:                                          
                                                                    RATIO OF                                                 
                            NET                                       NET                                                    
                   NET     ASSET          NET ASSETS,   RATIO OF   INVESTMENT   RATIO OF                                     
                CHANGE IN  VALUE,           END OF      EXPENSES     INCOME     EXPENSES    PORTFOLIO                        
                NET ASSET  END OF TOTAL     PERIOD     TO AVERAGE  TO AVERAGE  TO AVERAGE   TURNOVER                         
                  VALUE    PERIOD RETURN    (000'S)    NET ASSETS  NET ASSETS  NET ASSETS*  RATE(1)                          
                                                                                                                             
--------------                                                                                                               
SHORT TERM                                                                                                                   
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNLMX                                                                                                                        
Year ended        (0.39)   $ 9.52 1.03%    $  176,765    0.73%       4.75%         ***        56%                            
Year ended         0.44    $ 9.96 10.53%   $  310,680    0.77%       5.60%         ***        75%                            
Year ended        (0.21)   $ 9.75 4.22%    $  235,430    0.70%       6.17%        0.70%       32%                            
Year ended        --       $ 9.75 6.42%    $  139,739    0.72%       6.04%        0.73%       89%                            
Year ended         0.02    $ 9.77 6.14%    $  139,229    0.76%       5.74%        0.77%       72%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.18)   $ 9.59 0.89%^^  $  143,270    0.75%^      5.54%^       0.76%^      45%                            
--------------                                                                                                               
INTERMEDIATE                                                                                                                 
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNFIX                                                                                                                        
Year ended        (0.89)   $ 9.29 (3.19%)  $  977,865    0.80%       6.03%         ***       124%                            
Year ended         0.83    $10.12 16.18%   $  854,801    0.77%       6.50%         ***       166%                            
Year ended        (0.36)   $ 9.76 3.01%    $  769,395    0.77%       6.18%        0.78%      135%                            
Year ended         0.14    $ 9.90 7.80%    $  762,740    0.75%       6.03%        0.76%      114%                            
Year ended         0.16    $10.06 7.65%    $  885,580    0.76%       5.77%        0.77%      106%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.45)   $ 9.61 (1.68%)^^  $  826,027   0.76%^     5.73%^       0.77%^      55%                            
--------------                                                                                                               
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
KNIIX                                                                                                                        
Year ended         0.84    $10.84 15.05%^^  $  126,056   0.91%^      6.65%^        ***        50%                            
Year ended        (0.68)   $10.16 1.19%    $  240,060    0.83%       6.57%        0.83%      102%                            
Year ended         0.14    $10.30 10.55%   $  229,778    0.82%       6.65%        0.83%       84%                            
Year ended         0.03    $10.33 9.29%    $  231,017    0.83%       6.25%        0.84%      108%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.68)   $ 9.65 (3.62%)^^  $  285,655   0.83%^     6.14%^       0.84%^      54%                            
--------------                                                                                                               

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
**   Amount is less than $0.005.                                                                                           
***  During the period, there were no waivers and/or reimbursements.                                                       
(1)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               
(2)  The Institutional Class of the Income Fund commenced operations on March 20, 1995.                                    

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
BOND FUNDS                                                                      
INVESTMENT SHARES                                                               
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                    INCOME (LOSS) FROM                                                                       
                                   INVESTMENT OPERATIONS        TOTAL            LESS DIVIDENDS AND DISTRIBUTIONS FROM       
                               -----------------------------    INCOME    ---------------------------------------------------
                    NET ASSET              NET REALIZED AND     (LOSS)                IN EXCESS                     TOTAL    
                     VALUE,       NET      UNREALIZED GAINS      FROM        NET        OF NET    NET REALIZED    DIVIDENDS  
                    BEGINNING  INVESTMENT     (LOSSES) ON     INVESTMENT  INVESTMENT  INVESTMENT    GAINS ON         AND     
                    OF PERIOD    INCOME       INVESTMENTS     OPERATIONS    INCOME      INCOME    INVESTMENTS   DISTRIBUTIONS
                                                                                                                             
-----------------------------------------------------------------------------------------------------------------------------
SHORT TERM                                                                                                                   
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNLIX                                                                                                                        
Year ended     1994  $ 9.91       0.47           (0.37)          0.10       (0.48)      (0.01)       --             (0.49)   
Year ended     1995  $ 9.52       0.52            0.44           0.96       (0.53)      --           --             (0.53)   
Year ended     1996  $ 9.95       0.59           (0.20)          0.39       (0.54)      (0.06)       --             (0.60)   
Year ended     1997  $ 9.74       0.57            0.02           0.59       (0.59)      --           --             (0.59)   
Year ended     1998  $ 9.74       0.55            0.02           0.57       (0.52)      (0.03)       --             (0.55)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $ 9.76       0.26           (0.18)          0.08       (0.26)      --           --             (0.26)   
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE                                                                                                                 
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNFVX                                                                                                                        
Year ended     1994  $10.19       0.57           (0.87)         (0.30)      (0.54)      (0.01)       (0.02)         (0.57)   
Year ended     1995  $ 9.32       0.61            0.82           1.43       (0.61)      --           --             (0.61)   
Year ended     1996  $10.14       0.58           (0.32)          0.26       (0.57)      (0.05)       --             (0.62)   
Year ended     1997  $ 9.78       0.57            0.15           0.72       (0.57)      --           --             (0.57)   
Year ended     1998  $ 9.93       0.54            0.16           0.70       (0.55)      --           --             (0.55)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.08       0.27           (0.44)         (0.17)      (0.27)      --           --             (0.27)   
-----------------------------------------------------------------------------------------------------------------------------
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
N/A                                                                                                                          
Year ended     1995(3)  $10.00    0.52            0.91           1.43       (0.52)      --           (0.09)         (0.61)   
Year ended     1996  $10.82       0.66           (0.56)          0.10       (0.64)      (0.09)       (0.03)         (0.76)   
Year ended     1997  $10.16       0.63            0.35           0.98       (0.65)      --           (0.20)         (0.85)   
Year ended     1998  $10.29       0.62            0.28           0.90       (0.60)      (0.03)       (0.24)         (0.87)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.32       0.29           (0.67)         (0.38)      (0.29)      --           (0.01)         (0.30)   
-----------------------------------------------------------------------------------------------------------------------------


                                                          RATIOS/SUPPLEMENTAL DATA:                                          
                                                                    RATIO OF                                                 
                            NET                                       NET                                                    
                   NET     ASSET          NET ASSETS,   RATIO OF   INVESTMENT   RATIO OF                                     
                CHANGE IN  VALUE,           END OF      EXPENSES     INCOME     EXPENSES    PORTFOLIO                        
                NET ASSET  END OF TOTAL     PERIOD     TO AVERAGE  TO AVERAGE  TO AVERAGE   TURNOVER                         
                  VALUE    PERIOD RETURN(1)   (000'S)  NET ASSETS  NET ASSETS  NET ASSETS*  RATE(2)                          
                                                                                                                             
--------------                                                                                                               
SHORT TERM                                                                                                                   
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNLIX                                                                                                                        
Year ended        (0.39)   $ 9.52 1.01%    $  1,649      0.74%       4.79%          **        56%                            
Year ended         0.43    $ 9.95 10.30%   $  1,634      0.91%       5.40%          **        75%                            
Year ended        (0.21)   $ 9.74 4.06%    $  1,667      0.85%       6.02%        0.96%       32%                            
Year ended         0.00    $ 9.74 6.26%    $  7,433      0.88%       5.75%        0.99%       89%                            
Year ended         0.02    $ 9.76 6.00%    $  6,126      0.91%       5.60%        1.02%       72%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.18)   $ 9.58 0.81%^^  $  5,169      0.90%^      5.39%^       1.01%^      45%                            
--------------                                                                                                               
INTERMEDIATE                                                                                                                 
BOND FUND                                                                                                                    
TICKER SYMBOL:                                                                                                               
KNFVX                                                                                                                        
Year ended        (0.87)   $ 9.32 (3.01%)  $  9,196      0.81%       5.94%          **       124%                            
Year ended         0.82    $10.14 15.76%   $  6,862      1.01%       6.24%          **       166%                            
Year ended        (0.36)   $ 9.78 2.76%    $  7,327      1.02%       5.92%        1.03%      135%                            
Year ended         0.15    $ 9.93 7.62%    $  6,972      1.00%       5.79%        1.01%      114%                            
Year ended         0.15    $10.08 7.26%    $ 12,313      1.01%       5.51%        1.02%      106%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.44)   $ 9.64 (1.70%)^^  $ 11,441    1.01%^      5.48%^       1.02%^      55%                            
--------------                                                                                                               
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
N/A                                                                                                                          
Year ended         0.82    $10.82 14.63%^^  $  1,961     1.14%^      6.40%^         **        50%                            
Year ended        (0.66)   $10.16 1.16%    $  2,722      1.08%       6.31%        1.08%      102%                            
Year ended         0.13    $10.29 10.19%   $  5,611      1.07%       6.38%        1.08%       84%                            
Year ended         0.03    $10.32 9.04%    $ 10,629      1.08%       5.97%        1.09%      108%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.68)   $ 9.64 (3.75%)^^  $ 11,592    1.08%^      5.88%^       1.09%^      54%                            
--------------                                                                                                               

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
**   During the period, there were no waivers and/or reimbursements.                                                       
(1)  Calculation does not include sales charge. Effective May 1, 1997, the Investment Shares were not assessed a sales     
     charge.                                                                                                               
(2)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               
(3)  The date of initial public investment of the Investment Class of the Income Fund was March 22, 1995.                  

120                                                                             

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
MUNICIPAL BOND FUNDS                                                            
INSTITUTIONAL SHARES                                                            
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                    INCOME (LOSS) FROM                                                                       
                                   INVESTMENT OPERATIONS                           LESS DIVIDENDS AND                        
                               -----------------------------                       DISTRIBUTIONS FROM                        
                                           NET REALIZED AND     TOTAL     ------------------------------------               
                                           UNREALIZED GAINS     INCOME                            NET REALIZED               
                    NET ASSET                 (LOSSES) ON       (LOSS)                IN EXCESS     GAINS ON        TOTAL    
                     VALUE,       NET         INVESTMENTS        FROM        NET        OF NET    INVESTMENTS     DIVIDENDS  
                    BEGINNING  INVESTMENT     AND FUTURES     INVESTMENT  INVESTMENT  INVESTMENT   AND FUTURE        AND     
                    OF PERIOD    INCOME        CONTRACTS      OPERATIONS    INCOME      INCOME     CONTRACTS    DISTRIBUTIONS
                                                                                                                             
-----------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE                                                                                                                 
TAX-FREE FUND                                                                                                                
TICKER SYMBOL:                                                                                                               
KNMTX                                                                                                                        
Year ended     1994  $10.45       0.40           (0.71)         (0.31)      (0.39)      (0.01)       --             (0.40)   
Year ended     1995  $ 9.74       0.45            0.79           1.24       (0.45)      (0.01)       --             (0.46)   
Year ended     1996  $10.52       0.44           (0.08)          0.36       (0.46)         **        --             (0.46)   
Year ended     1997  $10.42       0.45            0.26           0.71       (0.45)      --           --             (0.45)   
Year ended     1998  $10.68       0.45            0.11           0.56       (0.45)      --           (0.03)         (0.48)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.76       0.22           (0.34)         (0.12)      (0.22)      --           (0.01)         (0.23)   
-----------------------------------------------------------------------------------------------------------------------------
TAX-FREE                                                                                                                     
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
KNTIX                                                                                                                        
Year ended     1995(2)  $10.00    0.36            0.49           0.85       (0.36)      --           --             (0.36)   
Year ended     1996  $10.49       0.46           (0.06)          0.40       (0.46)      --           (0.16)         (0.62)   
Year ended     1997  $10.27       0.45            0.41           0.86       (0.45)      --           (0.03)         (0.48)   
Year ended     1998  $10.65       0.44            0.15           0.59       (0.44)      --           (0.05)         (0.49)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.75       0.22           (0.41)         (0.19)      (0.22)      --           (0.01)         (0.23)   
-----------------------------------------------------------------------------------------------------------------------------
MICHIGAN                                                                                                                     
MUNICIPAL BOND                                                                                                               
FUND                                                                                                                         
TICKER SYMBOL:                                                                                                               
KNMIX                                                                                                                        
Year ended     1994  $10.06       0.37           (0.34)          0.03       (0.36)      (0.01)       --             (0.37)   
Year ended     1995  $ 9.72       0.39            0.39           0.78       (0.37)      (0.01)       --             (0.38)   
Year ended     1996  $10.12       0.39           (0.04)          0.35       (0.39)      --           --             (0.39)   
Year ended     1997  $10.08       0.41            0.13           0.54       (0.41)      --           --             (0.41)   
Year ended     1998  $10.21       0.40            0.08           0.48       (0.41)      --           (0.01)         (0.42)   
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)    1999  $10.27       0.20           (0.21)         (0.01)      (0.20)      --           --             (0.20)   
-----------------------------------------------------------------------------------------------------------------------------



                                                          RATIOS/SUPPLEMENTAL DATA:                                          
                                          ----------------------------------------------------------                         
                                                                    RATIO OF                                                 
                            NET                                       NET                                                    
                   NET     ASSET          NET ASSETS,   RATIO OF   INVESTMENT   RATIO OF                                     
                CHANGE IN  VALUE,           END OF      EXPENSES     INCOME     EXPENSES    PORTFOLIO                        
                NET ASSET  END OF TOTAL     PERIOD     TO AVERAGE  TO AVERAGE  TO AVERAGE   TURNOVER                         
                  VALUE    PERIOD RETURN    (000'S)    NET ASSETS  NET ASSETS  NET ASSETS*  RATE(1)                          
                                                                                                                             
--------------                                                                                                               
INTERMEDIATE                                                                                                                 
TAX-FREE FUND                                                                                                                
TICKER SYMBOL:                                                                                                               
KNMTX                                                                                                                        
Year ended        (0.71)   $ 9.74 (3.00%)  $  380,715    0.78%       4.07%        0.78%       36%                            
Year ended         0.78    $10.52 12.90%   $  283,733    0.72%       4.39%        0.72%        6%                            
Year ended        (0.10)   $10.42 3.41%    $  285,674    0.73%       4.34%        0.73%       35%                            
Year ended         0.26    $10.68 7.07%    $  275,641    0.72%       4.31%        0.73%       23%                            
Year ended         0.08    $10.76 5.37%    $  296,484    0.73%       4.22%        0.74%       40%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.35)   $10.41 (1.14%)^^  $  313,323   0.73%^     4.15%^       0.74%^      31%                            
--------------                                                                                                               
TAX-FREE                                                                                                                     
INCOME FUND                                                                                                                  
TICKER SYMBOL:                                                                                                               
KNTIX                                                                                                                        
Year ended         0.49    $10.49 8.64%^^  $  121,855    0.73%^      4.44%^       0.91%^      10%                            
Year ended        (0.22)   $10.27 3.92%    $  109,948    0.82%       4.38%        0.82%       40%                            
Year ended         0.38    $10.65 8.59%    $  116,652    0.79%       4.32%        0.80%       16%                            
Year ended         0.10    $10.75 5.71%    $  128,232    0.81%       4.16%        0.82%       53%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.42)   $10.33 (1.80%)^^  $  123,774   0.81%^     4.21%^       0.82%^      45%                            
--------------                                                                                                               
MICHIGAN                                                                                                                     
MUNICIPAL BOND                                                                                                               
FUND                                                                                                                         
TICKER SYMBOL:                                                                                                               
KNMIX                                                                                                                        
Year ended        (0.34)   $ 9.72 0.36%    $  118,485    0.49%       3.74%        0.74%       27%                            
Year ended         0.40    $10.12 8.20%    $  185,466    0.69%       3.81%        0.70%       42%                            
Year ended        (0.04)   $10.08 3.51%    $  152,623    0.70%       3.83%        0.70%       24%                            
Year ended         0.13    $10.21 5.52%    $  111,735    0.69%       4.04%        0.70%       13%                            
Year ended         0.06    $10.27 4.75%    $  117,957    0.69%       3.97%        0.70%       51%                            
Six months                                                                                                                   
ended                                                                                                                        
(Unaudited)       (0.21)   $10.06 (0.07%)^^  $  114,179   0.70%^     3.96%^       0.71%^      13%                            
--------------                                                                                                               

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
**   Amount is less than $0.005.                                                                                           
(1)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               
(2)  The Institutional Class of the Tax-Free Income Fund commenced operations on March 20, 1995.                           

                                                                             121

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
MUNICIPAL BOND FUNDS                                                            
INVESTMENT SHARES                                                               
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                               INCOME (LOSS) FROM INVESTMENT                  LESS DIVIDENDS AND DISTRIBUTIONS FROM     
                                        OPERATIONS                        ----------------------------------------------
                               -----------------------------    TOTAL                             NET REALIZED          
                                           NET REALIZED AND     INCOME                              GAINS ON       IN   
                    NET ASSET              UNREALIZED GAINS     (LOSS)                IN EXCESS   INVESTMENTS    EXCESS 
                     VALUE,       NET         (LOSSES) ON        FROM        NET        OF NET        AND        OF NET 
                    BEGINNING  INVESTMENT   INVESTMENTS AND   INVESTMENT  INVESTMENT  INVESTMENT     FUTURE     REALIZED
                    OF PERIOD    INCOME    FUTURES CONTRACTS  OPERATIONS    INCOME      INCOME     CONTRACTS     GAINS  
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE                                                                                                            
TAX-FREE FUND                                                                                                           
TICKER SYMBOL:                                                                                                          
KNMBX                                                                                                                   
Year ended     1994  $10.45       0.40           (0.71)         (0.31)      (0.39)      (0.01)       --           --    
Year ended     1995  $ 9.74       0.42            0.79           1.21       (0.42)      (0.01)       --           --    
Year ended     1996  $10.52       0.42           (0.09)          0.33       (0.41)      (0.02)       --           --    
Year ended     1997  $10.42       0.43            0.26           0.69       (0.43)      --           --           --    
Year ended     1998  $10.68       0.42            0.11           0.53       (0.42)      --           (0.03)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $10.76       0.21           (0.33)         (0.12)      (0.21)      --           (0.01)       --    
------------------------------------------------------------------------------------------------------------------------
TAX-FREE                                                                                                                
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended     1995(3)  $10.00    0.31            0.51           0.82       (0.30)      --           --           --    
Year ended     1996  $10.52       0.41           (0.05)          0.36       (0.43)      --           (0.12)      (0.04) 
Year ended     1997  $10.29       0.42            0.42           0.84       (0.42)      (0.01)       (0.03)       --    
Year ended     1998  $10.67       0.42            0.15           0.57       (0.42)      --           (0.05)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $10.77       0.21           (0.40)         (0.19)      (0.21)      --           (0.01)       --    
------------------------------------------------------------------------------------------------------------------------
MICHIGAN                                                                                                                
MUNICIPAL BOND                                                                                                          
TICKER SYMBOL:                                                                                                          
KNMVX                                                                                                                   
Year ended     1994  $10.08       0.35           (0.34)          0.01       (0.34)      (0.03)       --           --    
Year ended     1995  $ 9.72       0.37            0.40           0.77       (0.37)      (0.01)       --           --    
Year ended     1996  $10.11       0.38           (0.05)          0.33       (0.35)      (0.02)       --           --    
Year ended     1997  $10.07       0.39            0.14           0.53       (0.40)      --           --           --    
Year ended     1998  $10.20       0.39            0.07           0.46       (0.39)      --           (0.01)       --    
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $10.26       0.19           (0.21)         (0.01)      (0.20)      --           --           --    
------------------------------------------------------------------------------------------------------------------------



                                                         ----------------------------------------------------------     
                                                                                   RATIO OF                             
                                           NET                                       NET                                
                    TOTAL         NET     ASSET          NET ASSETS,   RATIO OF   INVESTMENT   RATIO OF                 
                  DIVIDENDS    CHANGE IN  VALUE,           END OF      EXPENSES     INCOME     EXPENSES    PORTFOLIO    
                     AND       NET ASSET  END OF TOTAL     PERIOD     TO AVERAGE  TO AVERAGE  TO AVERAGE   TURNOVER     
                DISTRIBUTIONS    VALUE    PERIOD RETURN(1)   (000'S)  NET ASSETS  NET ASSETS  NET ASSETS*  RATE(2)      
                                                                                                                        
--------------                                                                                                          
INTERMEDIATE                                                                                                            
TAX-FREE FUND                                                                                                           
TICKER SYMBOL:                                                                                                          
KNMBX                                                                                                                   
Year ended          (0.40)       (0.71)   $ 9.74 (3.03%)  $  4,505      0.79%       3.99%        0.79%       36%        
Year ended          (0.43)        0.78    $10.52 12.66%   $  3,807      0.97%       4.13%        0.97%        6%        
Year ended          (0.43)       (0.10)   $10.42 3.17%    $  3,368      0.98%       4.09%        0.98%       35%        
Year ended          (0.43)        0.26    $10.68 6.80%    $  3,534      0.97%       4.06%        0.98%       23%        
Year ended          (0.45)        0.08    $10.76 5.09%    $  4,038      0.98%       3.97%        0.99%       40%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.22)       (0.34)   $10.42 (1.17%)^^  $  4,649    0.98%^      3.90%^       0.99%^      31%        
--------------                                                                                                          
TAX-FREE                                                                                                                
INCOME FUND                                                                                                             
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended          (0.30)        0.52    $10.52 8.34%^^  $    529      0.95%^      4.25%^       1.17%^      10%        
Year ended          (0.59)       (0.23)   $10.29 3.53%    $    936      1.07%       4.14%        1.07%       40%        
Year ended          (0.46)        0.38    $10.67 8.32%    $  1,712      1.04%       4.05%        1.05%       16%        
Year ended          (0.47)        0.10    $10.77 5.43%    $  1,938      1.06%       3.91%        1.07%       53%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.22)       (0.41)   $10.36 (1.82%)^^  $  2,158    1.06%^      3.97%^       1.07%^      45%        
--------------                                                                                                          
MICHIGAN                                                                                                                
MUNICIPAL BOND                                                                                                          
TICKER SYMBOL:                                                                                                          
KNMVX                                                                                                                   
Year ended          (0.37)       (0.36)   $ 9.72 0.16%    $  1,980      0.49%       3.80%        0.84%       27%        
Year ended          (0.38)        0.39    $10.11 8.01%    $  1,900      0.83%       3.68%        0.85%       42%        
Year ended          (0.37)       (0.04)   $10.07 3.36%    $  2,422      0.85%       3.68%        0.95%       24%        
Year ended          (0.40)        0.13    $10.20 5.38%    $  4,413      0.84%       3.88%        0.95%       13%        
Year ended          (0.40)        0.06    $10.26 4.60%    $  5,946      0.84%       3.82%        0.95%       51%        
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)         (0.20)       (0.21)   $10.05 (0.15%)^^  $  5,382    0.85%^      3.81%^       0.96%^      13%        
--------------                                                                                                          

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
(1)  Calculation does not include sales charge. Effective May 1, 1997, the Investment Shares were not assessed a sales     
     charge.                                                                                                               
(2)  Portfolio turnover is calculated on the basis of the Fund as a whole distinguishing between the classes of shares     
     issued.                                                                                                               
(3)  The date of initial public investment of the Investment Class of the Tax-Free Income Fund was March 31, 1995.         

122                                                                             

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
MONEY MARKET FUNDS                                                              
INSTITUTIONAL SHARES                                                            
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                 INCOME                                                                                 
                                 (LOSS)                                                                                 
                                  FROM                                                                         RATIO OF 
                               INVESTMENT     LESS                                        NET                    NET    
                    NET ASSET  OPERATIONS: DIVIDENDS      NET       NET ASSET           ASSETS,    RATIO OF   INVESTMENT
                     VALUE,       NET       FROM NET   CHANGE IN     VALUE,              END OF    EXPENSES     INCOME  
                    BEGINNING  INVESTMENT  INVESTMENT  NET ASSET     END OF     TOTAL    PERIOD   TO AVERAGE  TO AVERAGE
                    OF PERIOD    INCOME      INCOME      VALUE       PERIOD     RETURN  (000'S)   NET ASSETS  NET ASSETS
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KIMXX                                                                                                                   
Year ended     1994  $1.000      0.040      (0.040)      --         $  1.000    3.75%    $323,539   0.60%       3.65%   
Year ended     1995  $1.000      0.050      (0.050)      --         $  1.000    5.58%    $424,815   0.55%       5.45%   
Year ended     1996  $1.000      0.050      (0.050)      --         $  1.000    5.06%    $483,919   0.52%       4.95%   
Year ended     1997  $1.000      0.051      (0.051)      --         $  1.000    5.23%    $474,378   0.52%       5.11%   
Year ended     1998  $1.000      0.050      (0.050)      --         $  1.000    5.13%    $693,399   0.55%       5.00%   
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $1.000      0.022      (0.022)      --         $  1.000    2.25%^^  $640,209   0.54%^      4.50%^  
------------------------------------------------------------------------------------------------------------------------
MICHIGAN                                                                                                                
MUNICIPAL                                                                                                               
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KMIXX                                                                                                                   
Year ended     1994  $1.000      0.020      (0.020)      --         $  1.000    2.40%    $128,164   0.60%       2.33%   
Year ended     1995  $1.000      0.030      (0.030)      --         $  1.000    3.50%    $145,215   0.56%       3.45%   
Year ended     1996  $1.000      0.030      (0.030)      --         $  1.000    3.11%    $155,424   0.54%       3.06%   
Year ended     1997  $1.000      0.033      (0.033)      --         $  1.000    3.31%    $211,682   0.52%       3.27%   
Year ended     1998  $1.000      0.030      (0.030)      --         $  1.000    3.06%    $323,272   0.54%       3.00%   
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $1.000      0.013      (0.013)      --         $  1.000    1.34%^^  $314,918   0.53%^      2.69%^  
------------------------------------------------------------------------------------------------------------------------
GOVERNMENT                                                                                                              
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KGIXX                                                                                                                   
Year ended     1994  $1.000      0.031      (0.031)      --         $  1.000    3.10%^^  $94,624    0.35%^      5.23%^  
Year ended     1995  $1.000      0.051      (0.051)      --         $  1.000    5.17%    $166,922   0.38%       5.03%   
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)    1999  $1.000      0.022      (0.022)      --         $  1.000    2.25%^^  $196,953   0.37%^      4.50%^  
------------------------------------------------------------------------------------------------------------------------



                 RATIO OF                                                                                               
                 EXPENSES                                                                                               
                TO AVERAGE                                                                                              
                NET ASSETS*                                                                                             
                                                                                                                        
--------------                                                                                                          
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KIMXX                                                                                                                   
Year ended         0.65%                                                                                                
Year ended         0.63%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.64%                                                                                                
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)        0.63%^                                                                                               
--------------                                                                                                          
MICHIGAN                                                                                                                
MUNICIPAL                                                                                                               
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KMIXX                                                                                                                   
Year ended         0.70%                                                                                                
Year ended         0.65%                                                                                                
Year ended         0.64%                                                                                                
Year ended         0.63%                                                                                                
Year ended         0.64%                                                                                                
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)        0.63%^                                                                                               
--------------                                                                                                          
GOVERNMENT                                                                                                              
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
KGIXX                                                                                                                   
Year ended         0.69%^^                                                                                              
Year ended         0.69%                                                                                                
Six months                                                                                                              
ended                                                                                                                   
(Unaudited)        0.65%^                                                                                               
--------------                                                                                                          

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
(1)  The Government Money Market Fund commenced operations on June 2, 1997.                                                

                                                                             123

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FINANCIAL HIGHLIGHTS                                                            
--------------------------------------------------------------------------------
MONEY MARKET FUNDS                                                              
INVESTMENT SHARES                                                               
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                                                                                   RATIOS/SUPPLEMENTAL  
                                                                                                          DATA:         
                                 INCOME                                                           ----------------------
                                  FROM                                                                         RATIO OF 
                               INVESTMENT     LESS                                        NET                    NET    
                    NET ASSET  OPERATIONS: DIVIDENDS      NET       NET ASSET           ASSETS,    RATIO OF   INVESTMENT
                     VALUE,       NET       FROM NET   CHANGE IN     VALUE,              END OF    EXPENSES     INCOME  
                    BEGINNING  INVESTMENT  INVESTMENT  NET ASSET     END OF     TOTAL    PERIOD   TO AVERAGE  TO AVERAGE
                    OF PERIOD    INCOME      INCOME      VALUE       PERIOD     RETURN  (000'S)   NET ASSETS  NET ASSETS
                                                                                                                        
------------------------------------------------------------------------------------------------------------------------
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended     1994  $1.000      0.040      (0.040)      --           $1.000    3.71%    $ 369      0.63%       3.58%   
Year ended     1995  $1.000      0.050      (0.050)      --           $1.000    5.56%    $1,227     0.55%       5.41%   
Year ended     1996  $1.000      0.050      (0.050)      --           $1.000    5.06%    $ 804      0.52%       4.94%   
Year ended     1997  $1.000      0.051      (0.051)      --           $1.000    5.23%    $1,179     0.52%       5.11%   
Year ended     1998  $1.000      0.050      (0.050)      --           $1.000    5.13%    $3,728     0.55%       5.00%   
Six months                                                                                                              
ended          1999  $1.000      0.022      (0.022)      --           $1.000    2.25%^^  $1,801     0.55%^      4.48%^  
------------------------------------------------------------------------------------------------------------------------
MICHIGAN                                                                                                                
MUNICIPAL                                                                                                               
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended     1994  $1.000      0.020      (0.020)      --           $1.000    2.38%    $ 379      0.63%       2.47%   
Year ended     1995  $1.000      0.030      (0.030)      --           $1.000    3.48%    $1,603     0.54%       3.48%   
Year ended     1996  $1.000      0.030      (0.030)      --           $1.000    3.11%    $ 782      0.54%       3.06%   
Year ended     1997  $1.000      0.033      (0.033)      --           $1.000    3.31%    $ 289      0.52%       3.22%   
Year ended     1998  $1.000      0.030      (0.030)      --           $1.000    3.06%    $ 346      0.54%       3.02%   
Six months                                                                                                              
ended          1999  $1.000      0.013      (0.013)      --           $1.000    1.34%^^  $ 751      0.53%^      2.70%^  
------------------------------------------------------------------------------------------------------------------------
GOVERNMENT                                                                                                              
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended     1997(1)  $1.000   0.030      (0.030)      --           $1.000    3.06%^^  $   2      0.43%^      5.17%^  
Year ended     1998  $1.000      0.051      (0.051)      --           $1.000    5.17%    $  93      0.38%       4.92%   
Six months                                                                                                              
ended          1999  $1.000      0.022      (0.022)      --           $1.000    2.25%^^  $ 133      0.37%^      4.50%^  
------------------------------------------------------------------------------------------------------------------------



                 RATIO OF                                                                                               
                 EXPENSES                                                                                               
                TO AVERAGE                                                                                              
                NET ASSETS*                                                                                             
                                                                                                                        
--------------                                                                                                          
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended         0.68%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.64%                                                                                                
Six months                                                                                                              
ended              0.63%^                                                                                               
--------------                                                                                                          
MICHIGAN                                                                                                                
MUNICIPAL                                                                                                               
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended         0.73%                                                                                                
Year ended         0.62%                                                                                                
Year ended         0.64%                                                                                                
Year ended         0.63%                                                                                                
Year ended         0.64%                                                                                                
Six months                                                                                                              
ended              0.63%^                                                                                               
--------------                                                                                                          
GOVERNMENT                                                                                                              
MONEY MARKET                                                                                                            
FUND                                                                                                                    
TICKER SYMBOL:                                                                                                          
N/A                                                                                                                     
Year ended         0.77%^^                                                                                              
Year ended         0.69%                                                                                                
Six months                                                                                                              
ended              0.65%^                                                                                               
--------------                                                                                                          

                                                        [Enlarge/Download Table]
                                                                                                                           
^    Annualized.                                                                                                           
^^   Not Annualized.                                                                                                       
*    During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratio
     would have been as indicated.                                                                                         
(1)  The Government Money Market Fund commenced operations on June 2, 1997.                                                

124                                                                             

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[LOGO]                                                                          

P.O. BOX 182201                                                                 
COLUMBUS, OHIO 43218-2201                                                       

                                                       KKF-1391 (8/99)

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Dates Referenced Herein and Documents Incorporated by Reference

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This ‘N-30D’ Filing	Date	First	Last	Other Filings

Filed on:	9/2/99
	7/29/99	6
	7/1/99	110
For Period End:	6/30/99	1	116	497, NSAR-A
	3/30/99	117
	3/24/99	116
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	12/3/98	116
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	5/1/97	119	123	485BPOS
	3/31/95	123
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	3/20/95	120	122
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Filing Submission 0001047469-99-034601 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Kent Funds – ‘N-30D’ for 6/30/99

On: Thursday, 9/2/99 · For: 6/30/99 · Accession #: 1047469-99-34601 · File #: 811-04824

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Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1Filing Table of Contents

Document Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Annual or Semi-Annual Report Mailed to Shareholders — Rule 30d-1
Filing Table of Contents