SEC Info - Activa Mutual Fund Trust - ‘N-30D’ for 6/30/98

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Activa Mutual Fund Trust – ‘N-30D’ for 6/30/98

As of: Monday, 8/24/98 · For: 6/30/98 · Accession #: 1047469-98-32522 · File #: 811-02168

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

 8/24/98  Activa Mutual Fund Trust          N-30D       6/30/98    1:27K                                    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                11     64K 
                          Shareholders                                           

N-30D 1st Page of 11 TOC ↑Top Previous Next ↓Bottom Just 1st
 
BULK RATE                                                                       
U.S. POSTAGE                                                                    
PAID                                                                            
GRAND RAPIDS, MI                                                                
PERMIT 522                                                                      

AMWAY MUTUAL FUND                                                               
7575 Fulton Street East                                                         
Ada, Michigan 49355-7150                                                        

FORWARDING SERVICE REQUESTED                                                    

     AMWAY

      MUTUAL

      FUND

     SEMI-ANNUAL

      REPORT

      1998

     AMWAY

      MUTUAL

      FUND

     Printed in U.S.A.   898356   L-2621-SAL

N-30D 2nd Page of 11 TOC 1st Previous Next ↓Bottom Just 2nd
     AMWAY MUTUAL FUND

Dear Shareholders:                                                              

I am pleased to provide you with the Semi-Annual Report to Shareholders 
for Amway Mutual Fund for the six months ended June 30, 1998. During the        
first half of 1998, the market has maintained its upward trend, continuing      
the longest running bull market in history. Your Fund continues to              
participate in this bull market, with a six month return of 10.1%. Inflation    
and interest rates remain low, although signs of slower earnings growth are     
becoming evident.                                                               

We anticipate that volatility in the equity markets will continue during
the rest of 1998 as U.S. earnings growth and the Asian markets remain           
unstable. Your Fund's strong value discipline should provide a defense to       
this volatile market. We believe that a strategy of investing in reasonably     
priced companies with growth potential will provide rewards over the long       
term.                                                                           

There have been some changes in your Fund over the last six months. The 
shareholders overwhelmingly approved the Fund reorganization and 12b-1          
distribution plan in April. The results of the proxy vote are in the            
following pages. We are very excited about these changes. The elimination of    
the 3% load should allow your Fund to be more competitive in the sales of its   
shares, which may increase the Fund's assets, achieve certain economies of      
scale and potentially result in a lower expense ratio. We remain committed to   
continuously improving operations in order to provide superior service.         

As always, your satisfaction and trust are our highest priorities. We   
will continue to do our best to earn both in the future.                        

Sincerely,                                                                      

/s/ James J. Rosloniec                                                          

James J. Rosloniec                                                              
President                                                                       

                                                        [Enlarge/Download Table]

                                                                                          
TRUSTEES                      AUDITORS                      INVESTMENT ADVISOR            
Richard A. DeWitt             BDO Seidman, LLP              Amway Management Company      
Allan D. Engel                99 Monroe Avenue, N.W.        7575 Fulton Street, East      
Donald H. Johnson             Grand Rapids, Michigan 49503  Ada, Michigan 49355-7150      
Walter T. Jones                                                                           
James J. Rosloniec            LEGAL MATTERS                 SUB-ADVISOR                   
Richard E. Wayman             John Dougherty                Ark Asset Management Co., Inc.
                              Attorney at Law               125 Broad Street              
TRANSFER AGENT                Suite 500                     12th Floor                    
Amway Management Company      1155 Connecticut Ave., N.W.   New York, NY 10004            
7575 Fulton Street, East      Washington, DC 20036                                        
Ada, Michigan 49355-7150                                                                  

CUSTODIAN                                                                                 
Michigan National Bank                                                                    
77 Monroe Center                                                                          
Grand Rapids, Michigan 49501                                                              

                                                                 August 24, 1998

2                                                                               

N-30D 3rd Page of 11 TOC 1st Previous Next ↓Bottom Just 3rd
     AMWAY MUTUAL FUND
     SCHEDULE OF INVESTMENTS
     JUNE 30, 1998 (CONTINUED)

                                                                [Download Table]

                                       % OF          SHARES OR        MARKET   
                                    INVESTMENTS      PAR VALUE          VALUE  
                                    -----------      ---------          -----  
                                                                               
BANKING                               5.39%                                    
     Banc One Corp                                     35,600         1,986,925
     Chase Manhattan Corp. (New)                       26,400         1,993,200
     First Union Corp.                                 39,700         2,312,525
     NationsBank Corp.                                 29,300         2,241,450
                                                                   ------------
                                                                      8,534,100
                                                                   ------------

BUSINESS SERVICES                     1.57%                                    
     Bell Atlantic Corp.                               54,464         2,484,920
                                                                   ------------
                                                                      2,484,920
                                                                   ------------
CHEMICALS & ALLIED PRODUCTS           2.13%                                    
     Abbott Laboratories                               60,800         2,485,200
     Air Products & Chemicals, Inc.                     4,400           176,000
     Hercules, Inc.                                    17,200           707,350
                                                                   ------------
                                                                      3,368,550
                                                                   ------------

COMMUNICATION                         4.46%                                    
     AT&T Corp.                                        34,000         1,942,250
     Comcast Corp. CL ASPL                             30,100         1,221,872
     GTE Corp.                                         29,900         1,663,187
     SBC Communications, Inc.                          46,200         1,848,000
     Worldcom. Inc.                                    *8,000           386,750
                                                                   ------------
                                                                      7,062,059
                                                                   ------------

ELECTRIC & ELECTRONIC EQUIPMENT       8.80%                                    
     Alliedsignal, Inc.                                72,500         3,217,188
     AMP Inc.                                          58,200         2,000,625
     Emerson Electric Co.                              48,600         2,934,225
     Motorola, Inc.                                    31,900         1,676,744
     Nat'l Semiconductor Corp.                        *76,800         1,012,800
     Raytheon Co. Class A                              26,500         1,527,062
     Raytheon Co. Class B                              26,400         1,560,900
                                                                   ------------
                                                                     13,929,544
                                                                   ------------

ELECTRIC, GAS, & SANITARY SERVICES    4.55%                                    
     Consolidated Edison, Inc.                         14,400           663,300
     Dominion Resources, Inc.                          22,700           925,025
     Pacificorp                                        61,800         1,398,225
     Southern Co.                                      56,300         1,558,806
     Texas Utilities Co.                               64,000         2,664,000
                                                                   ------------
                                                                      7,209,356
                                                                   ------------

FABRICATED METAL PRODUCTS             2.41%                                    
     Crown Cork & Seal Company                         34,600         1,643,500
     Masco Corp.                                       36,000         2,178,000
                                                                   ------------
                                                                      3,821,500
                                                                   ------------

      The accompanying notes are an integral part of these financial statements.

                                                                               3

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     AMWAY MUTUAL FUND
     SCHEDULE OF INVESTMENTS
     JUNE 30, 1998 (CONTINUED)

                                                                [Download Table]

                                         % OF       SHARES OR          MARKET  
                                      INVESTMENTS   PAR VALUE           VALUE  
                                      -----------   ---------           -----  
                                                                               
FOOD AND KINDRED PRODUCTS               7.23%                                  
     Anheuser-Busch Cos., Inc.                         73,300         3,458,844
     Archer-Daniels-Midland                           157,629         3,054,062
     Conagra, Inc.                                     85,600         2,712,450
     General Mills, Inc.                               32,500         2,222,187
                                                                   ------------
                                                                     11,447,543
                                                                   ------------

FOOD STORES                             1.17%                                  
     American Stores Co.                               76,500         1,850,344
                                                                   ------------

FURNITURE AND FIXTURES                  1.71%                                  
     Sun Microsystems, Inc.                           *62,400         2,712,450
                                                                   ------------

GENERAL MERCHANDISE STORES              5.51%                                  
     Consolidated Stores Corp.                        *45,500         1,649,375
     Dillards, Inc.                                    36,500         1,512,469
     Federated Department Stores                      *54,000         2,905,875
     May Dept. Stores Co.                              16,100         1,054,550
     Venator Group, Inc.                              *83,700         1,600,762
                                                                   ------------
                                                                      8,723,031
                                                                   ------------

HEALTH SERVICES                         0.77                                   
     Tenet Healthcare Corp.                           *39,100         1,221,875
                                                                   ------------

HOLDING AND OTHER INVESTMENT OFFICES    0.92%                                  
     American General Corp.                            20,400         1,452,225
                                                                   ------------

INSTRUMENTS AND RELATED PRODUCTS        2.08%                                  
     Baxter International, Inc.                        61,200         3,293,325
                                                                   ------------

INSURANCE AGENTS, BROKERS, & SERVICE    1.68%                                  
     Cigna Corp.                                       38,500         2,656,500
                                                                   ------------

INSURANCE CARRIERS                      9.92%                                  
     Aetna Inc.                                        40,600         3,090,675
     Allstate Corp.                                    18,700         1,712,219
     Chubb Corp                                        35,700         2,869,388
     General RE Corporation                            11,600         2,940,600
     Loews Corp.                                       17,800         1,550,825
     St. Paul Cos, Inc.                                50,200         2,111,537
     Unum Corp.                                        25,800         1,431,900
                                                                   ------------
                                                                     15,707,144
                                                                   ------------

LUMBER AND WOOD PRODUCTS                0.50%                                  
     Weyerhaeuser Co.                                  17,000           785,188
                                                                   ------------

MACHINERY, EXCEPT ELECTRICAL            5.02%                                  
     Deere & Co.                                       34,800         1,840,050
     International Business Machines                   32,900         3,777,331
     Seagate Technology                               *97,900         2,331,244
                                                                   ------------
                                                                      7,948,625
                                                                   ------------

METAL MINING                            0.37%                                  
     Newmont Mining Corp.                              24,600           581,175
                                                                   ------------

      The accompanying notes are an integral part of these financial statements.

4                                                                               

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     AMWAY MUTUAL FUND
     SCHEDULE OF INVESTMENTS
     JUNE 30, 1998 (CONTINUED)

                                                                [Download Table]


                                           % OF       SHARES OR        MARKET  
                                        INVESTMENTS   PAR VALUE         VALUE  
                                        -----------   ---------         -----  
                                                                               
MISCELLANEOUS MANUFACTURING INDUSTRIES    0.00%                                
     Jan Bell Marketing Warrants                         *762                 8
                                                                   ------------

MISCELLANEOUS RETAIL                      0.67%                                
     Toys 'R' Us, Inc.                                *44,800         1,055,600
                                                                   ------------

OIL AND GAS EXTRACTION                    10.62%                               
     Baker Hughes, Inc.                                50,000         1,728,125
     Burlington Resources                              38,500         1,657,906
     Halliburton Co.                                   35,300         1,573,056
     Occidental Petroleum Corp.                        88,900         2,400,300
     Praxair, Inc.                                     67,100         3,141,119
     Tenneco, Inc.                                     40,300         1,533,919
     Union Pacific Resources                           96,000         1,686,000
     Unocal Corp.                                      86,800         3,103,100
                                                                   ------------
                                                                     16,823,525
                                                                   ------------

PAPER & ALLIED PRODUCTS                   4.74%                                
Champion International Corp.                           25,500         1,254,281
     Fort James Corp.                                  64,600         2,874,700
     Kimberly-Clark Corp.                              27,800         1,275,325
     Minnesota Mining & Mfg. Co.                       25,500         2,095,781
                                                                   ------------
                                                                      7,500,087
                                                                   ------------

PETROLEUM & COAL PRODUCTS                 6.09%                                
     Amerada Hess Corp.                                33,300         1,808,606
     Amoco Corporation                                 49,400         2,056,275
     Atlantic Richfield Company                        38,000         2,968,750
     Chevron Corp.                                     11,300           938,606
     Texaco, Inc.                                      31,500         1,880,157
                                                                   ------------
                                                                      9,652,394
                                                                   ------------

PRIMARY METAL INDUSTRIES                  0.91%                                
     Aluminum Co. of America                           21,800         1,437,437
                                                                   ------------

PRINTING AND PUBLISHING                   1.08%                                
     Gannett Co.                                       24,200         1,719,712
                                                                   ------------

RAILROAD TRANSPORTATION                   3.71%                                
     Burlington Northern Santa Fe                      32,500         3,191,094
     CSX Corp.                                         59,300         2,698,150
                                                                   ------------
                                                                      5,889,244
                                                                   ------------

RUBBER AND MISC. PLASTICS PRODUCTS        0.75%                                
     Goodyear Tire & Rubber Co.                        18,500         1,192,094
                                                                   ------------

STONE, CLAY & GLASS PRODUCTS              2.05%                                
     Corning Inc.                                      42,500         1,476,875
     PPG Industries                                    25,500         1,773,844
                                                                   ------------
                                                                      3,250,719
                                                                   ------------

TRANSPORTATION EQUIPMENT                  3.19%                                
     Dana Corp.                                        45,000         2,407,500
     Lockheed Martin Corp.                             25,100         2,657,462
                                                                   ------------
                                                                      5,064,962
                                                                   ------------

Total Common Stock (Cost $148,987,064)    100.00%                  $158,375,236
                                                                   ------------
                                                                   ------------

*Non-dividend producing as of June 30, 1998                                    

      The accompanying notes are an integral part of these financial statements.

                                                                               5

N-30D 6th Page of 11 TOC 1st Previous Next ↓Bottom Just 6th
     AMWAY MUTUAL FUND
     STATEMENT OF ASSETS
     AND LIABILITIES FOR
      THE SIX MONTHS ENDED
     JUNE 30, 1998
     (UNAUDITED)

                                                                [Download Table]

                                                                      
ASSETS:                                                               
Investments in securities, at market                                  
     (identified cost $148,987,064)                                   
     (Notes 1-A, and 3)                                   $158,375,236
Cash                                                         3,550,698
Receivables:                                                          
     Securities sold                                         1,278,974
     Dividends                                                 261,071
     Capital stock sold                                        255,526
     Interest                                                    4,711
Prepaid reorganization expenses                                118,632
Prepaid insurance                                                5,309
                                                          ------------
     TOTAL ASSETS                                          163,850,157
                                                          ------------

LIABILITIES:                                                          
   Accounts payable:                                                  
     Securities purchased                                    1,136,987
     Advisory fee (Note 4)                                     219,857
     12b-1 fee                                                  78,999
     Transfer agent fee (Note 4)                                68,461
     Capital stock redeemed                                     51,681
     Miscellaneous                                               4,865
                                                          ------------
        TOTAL LIABILITIES                                    1,560,850
                                                          ------------

NET ASSETS:                                                           
   Capital stock (40,000,000 shares                                   
     of $1.00 par value authorized),                                  
     amount paid in on 19,078,687                                     
     shares outstanding (Note 2)          $134,482,627                
   Undistributed net investment                                       
     income                                    727,862                
   Accumulated net realized gain on                                   
     investments                            17,690,646                
   Net unrealized appreciation on                                     
     investments                             9,388,172                
                                          ------------                
   Net assets equivalent to $8.51                                     
     per share                                            $162,289,307
                                                          ------------
                                                          ------------

COMPUTATION OF MAXIMUM OFFERING PRICE                                 
OF THE FUND'S SHARES-as of June 30, 1998:                             
   Net asset value per share                                          
     ($162,289,307 DIVIDED BY 19,078,687)                       $ 8.51
   Offering price per share                                     $ 8.51

     AMWAY MUTUAL FUND
     STATEMENT OF OPERATIONS
      FOR THE SIX MONTHS ENDED
     JUNE 30, 1998
     (UNAUDITED)

                                                                [Download Table]

                                                                       
INVESTMENT INCOME:                                                     
   Income:                                                             
     Dividends                                             $ 1,375,297 
     Interest                                                   89,185 
     Securities Litigation Settlement                            1,385 
                                                           ----------- 
       Total income                                          1,465,867 

EXPENSES:                                                              
   Advisory fee (Note 4)                   $   430,895                 
   Transfer agent fee (Note 4)                 132,050                 
   12b-1 fee (note 4)                           78,999                 
   Custodian fee                                26,435                 
   Shareholder Communications                   26,245                 
   Data processing service (Note 5)             15,664                 
   Corporate taxes                              12,670                 
   Audit fees                                   11,993                 
   Registration fees                            10,860                 
   Insurance                                     6,855                 
   Legal services                                4,525                 
   Reorganization expense                        2,339                 
                                           -----------                 
     Total expenses                                            759,530 
     Fees paid indirectly (Note 5)                             (15,664)
                                                           ----------- 
     Net Expenses                                              743,866 
                                                           ----------- 
       NET INVESTMENT INCOME                                   722,001 
                                                           ----------- 

REALIZED AND UNREALIZED GAIN ON                                        
  INVESTMENTS:                                                         
   Net realized gain (Note 3)                               17,985,817 
     Unrealized appreciation on                                        
       investments:                                                    
       Beginning of year                    12,817,017                 
       June 30, 1998                         9,388,172                 
                                           -----------                 
   Net change in unrealized                                            
     appreciation on investments:                            3,428,845 
                                                           ----------- 
       NET GAIN ON INVESTMENTS                              14,556,972 
                                                           ----------- 
       NET INCREASE IN NET ASSETS                                      
        RESULTING FROM OPERATIONS                          $15,278,973 
                                                           ----------- 
                                                           ----------- 

      The accompanying notes are an integral part of these financial statements.

6                                                                               

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     AMWAY MUTUAL FUND
      STATEMENT OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]


                                                       SIX MONTHS ENDED     YEAR ENDED    
                                                         JUNE 30, 1998   DECEMBER 31, 1997
                                                           UNAUDITED)        (AUDITED)    
                                                           ----------        ---------    
                                                                                          
NET ASSETS FROM OPERATIONS:                                                               
   Investment income-net                                  $    722,001      $  1,445,186  
   Realized gain on investments-net                         17,985,817        22,171,305  
   Increase (Decrease) in unrealized appreciation-net       (3,428,845)        2,903,231  
                                                          ------------      ------------  
   Net increase in net assets resulting from operations     15,278,973        26,519,722  

DISTRIBUTIONS TO SHAREHOLDERS:                                                            
   Investment income-net                                            --        (1,415,589) 
   Realized gain from investment transactions-net                   --       (22,425,859) 
                                                          ------------      ------------  
     Total distributions to shareholders                            --       (23,841,448) 
                                                          ------------      ------------  

CAPITAL SHARE TRANSACTIONS: (Notes 2 and 4)                                               
   Net proceeds from sale of shares                         22,553,823        18,823,240  
   Net asset value of shares issued to shareholders in                                    
   reinvestment of investment income and realized gain                                    
   from security transactions                                       --        23,180,330  
                                                          ------------      ------------  
                                                            22,553,823        42,003,570  
   Payment for shares redeemed                             (14,707,064)      (18,845,671) 
                                                          ------------      ------------  

     Increase in net assets derived from capital share                                    
     transactions                                            7,846,759        23,157,899  
          Total increase                                    23,125,732        25,836,173  

NET ASSETS:                                                                               
   Beginning of period                                     139,163,575       113,327,402  
                                                          ------------      ------------  
   End of period (includes undistributed                                                  
     (overdistributed) net investment income of                                           
     $727,862 and ($5,862), respectively)                 $162,289,307      $139,163,575  
                                                          ------------      ------------  
                                                          ------------      ------------  

      The accompanying notes are an integral part of these financial statements.

                                                                               7

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     AMWAY MUTUAL FUND
     NOTES TO FINANCIAL STATEMENTS
     (UNAUDITED)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES                                          
The company is registered under the Invested Company Act of 1940 as a 
diversified, open-end management investment company.                  

 (A)  SECURITY VALUATION-Investments in securities listed or admitted to
      trading on a national securities exchange are valued at their last
      reported sale price before the time of valuation. If a security is
        traded only in the over-the-counter market, or if no sales have been
        reported for a listed security on that day, it is valued at the mean
          between the current closing bid and asked prices. Securities for which
         market quotations are not readily available, including any restricted
        securities, (none at June 30, 1998) and other assets of the Fund are
         valued at fair market value as determined in good faith by the Fund's
Board of Directors.                                         

(B)  FEDERAL INCOME TAXES-The Fund's policy is to comply with the     
     requirements of the Internal Revenue Code applicable to regulated
        investment companies and to make distributions of income and capital
        gains sufficient to relieve it from substantially all Federal income
taxes.                                                      

(C)  SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME-Security     
        transactions are accounted for on the trade date and dividend income
       is recorded on the ex-dividend date. Interest income is recorded on
the accrual basis. Realized gains and losses from security  
transactions and unrealized appreciation and depreciation of
          investments are reported on a specific identification basis. Dividends
     and distributions to shareholders are recorded by the Fund on the
ex-dividend date.                                           

NOTE 2-CAPITAL STOCK                                                            
   At June 30, 1998, there were 40,000,000 shares of $1.00 par value capital
stock authorized. Transactions in capital stock were as follows:                

                                                                [Download Table]

                                             SIX MONTHS     YEAR ENDED
                                                ENDED        DECEMBER 
                                            JUNE 30, 1998    31, 1997 
                                            -------------    -------- 
                                                                      
Shares:                                                               
     Outstanding, beginning of period        17,999,216     14,871,253
                                             ----------     ----------
     Sold                                     2,878,723      2,394,827
     Issued in payment of dividends                  --      3,006,527
                                             ----------     ----------
                                              2,878,723      5,401,354
     Redeemed                                 1,799,252      2,273,391
                                             ----------     ----------
     Net increase for the period              1,079,471      3,127,963
                                             ----------     ----------
     Outstanding, end of period              19,078,687     17,999,216
                                             ----------     ----------
                                             ----------     ----------

NOTE 3-INVESTMENT TRANSACTIONS                                                  
    At June 30, 1998, for federal income tax purposes, the cost of investments
owned was $148,992,922. Aggregate gross unrealized gains on securities in which 
there was an excess of market value over tax cost were $15,171,814. Aggregate   
gross unrealized losses on securities in which there was an excess of tax cost  
over market value were $5,789,499. Net unrealized gains for tax purposes were   
$9,382,315 at June 30, 1998.                                                    

  Realized gains from sales of investments were determined on the basis of
specific identification. For tax purposes gains of $17,757,377 were realized on 
investments.                                                                    

 For the period ended June 30, 1998, cost of purchases and proceeds from
sales of investments, other than corporate short-term notes, aggregated         
$91,001,776 and $81,277,230, respectively.                                      

      The accompanying notes are an integral part of these financial statements.

8                                                                               

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     AMWAY MUTUAL FUND
     NOTES TO FINANCIAL STATEMENTS
     (UNAUDITED) (CONTINUED)
NOTE 4-INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES           
The Fund has entered into an Advisory and Service Contract (Contract)   
with Amway Management Company (Investment Advisor). Under the Contract, the     
Fund employs the Investment Advisor to furnish investment advice and manage     
on a regular basis the investment portfolio of the Fund; to furnish for the     
use of the Fund, office space and all necessary office facilities, equipment    
and personnel for servicing the investments of the Fund, and (with certain      
specific exceptions) administering its affairs; and to pay the salaries and     
fees of all Officers and Trustees of the Fund. Except when otherwise            
specifically directed by the Fund, the Investment Advisor will make             
investment decisions on behalf of the Fund and place all orders for the         
purchase and sale of portfolio securities for the Fund's account. The           
Investment Advisor shall be permitted to enter into an agreement with another   
advisory organization (sub-advisor), whereby the sub-advisor will provide all   
or part of the investment advice and services required to manage the Fund's     
investment portfolio as provided for in this agreement. In return for its       
Investment Advisor services, the Fund pays the Investment Advisor quarterly,    
pursuant to the contract, a fee at the annual rate of 0.55% on the first $100   
million of average daily net assets of the Fund, 0.50% on the next $50          
million in assets, and 0.45% on the next $50 million in assets. When the        
Fund's assets reach $200 million the rate would be 0.50% on assets up to $200   
million and 0.45% on assets in excess of $200 million, so long as the Fund      
continued to have at least $200 million in assets. The advisory fee incurred    
by the Fund amounted to $430,895 for the period ended June 30, 1998.            

The Investment Advisor has entered into a Sub-Advisory Agreement with   
Ark Asset Management Co., Inc. (Sub-Advisor). Under the Sub-Advisory            
Agreement, the Advisor employs the Sub-Advisor to furnish investment advise     
and manage on a regular basis the investment portfolio of the Fund, subject     
to the direction of the Advisor, the Board of Trustees of the Fund, and to      
the provisions of the Fund's current Prospectus. Except when otherwise          
specifically directed by the Fund or the Advisor, the Sub-Advisor will make     
investment decisions on behalf of the Fund and place all orders for the         
purchase or sale of the portfolio securities for the Fund's account. For        
services rendered, the Investment Advisor, not the Fund, pays the Sub-Advisor   
a fee at the annual rate of 0.45% on the first $100 million of average daily    
net assets of the Fund, 0.40% on the next $50 million in assets, and 0.35% on   
the next $50 million in assets. When the Fund's assets reach $200 million the   
rate would be 0.40% on assets up to $200 million and 0.35% on assets in         
excess of $200 million, so long as the Fund continued to have at least $200     
million in assets.                                                              

The Investment Advisor acts as the Fund's agent for transfer of the     
Fund's shares and disbursement of the Fund's distributions. The transfer        
agent fee incurred by the Fund amounted to $132,050 for the period ended June   
30, 1998.                                                                       

A beneficial shareholder of Amway Management Company is also a          
beneficial shareholder of approximately 21.9% (as of June 30, 1998) of the      
outstanding capital shares of the Fund.                                         

Certain officers and trustees of the Fund are affiliated with the       
investment advisor and transfer agent.                                          

The officers serve without compensation from the Fund. Trustees' fees,  
amounting to $20,500 for the period ended June 30, 1998 were paid by Amway      
Management Company, the Fund's investment advisor. The trustee's payments       
consist of an annual retainer plus a per meeting fee.                           

The Trust has adopted a Plan and Agreement of Distribution              
("Distribution Plan"). Under the Distribution Plan, which became effective on   
April 22, 1998, the Investment Advisor will provide services in connection      
with distributing the Fund's shares, and will be compensated at a maximum       
annual rate of 0.25 of 1% of the average daily net assets of the Fund. The      
12b-1 fee incurred by the Fund amounted to $78,999 for the period ended June    
30,1998.                                                                        

 The Investment Advisor acts as the exclusive agent for sales of shares of
the Fund pursuant to a Principal Underwriting Agreement. Prior to April 1, 1998,
the Investment Advisor received a sales commission of 3% of the offering price  
of the Fund's shares which amounted to $473,151 for the period ended March 31,  
1998. The sales commission was eliminated when the Fund adopted the Distribution
Plan.                                                                           

      The accompanying notes are an integral part of these financial statements.

                                                                               9

N-30D 10th Page of 11 TOC 1st Previous Next ↓Bottom Just 10th
     AMWAY MUTUAL FUND
     NOTES TO FINANCIAL STATEMENTS
     (UNAUDITED) (CONTINUED)

NOTE 5-DATA PROCESSING SERVICE                                                  
   Portfolio accounting services for the Fund in the amount of $15,664 for the
period ended June 30, 1998 are paid for through the use of directed brokerage   
commissions.                                                                    

NOTE 6-MATERIAL ISSUANCE OF STOCK                                               
 A certain class of distributors of Amway Corporation and Amway of Canada,
Ltd. ("corporations") received from each corporation part of its distributor's  
profit-sharing bonus in Amway Mutual Fund common stock shares. On January 8,    
1998, the corporations purchased 1,854,165 Amway Mutual Fund shares valued at   
$14,073,116 (based on the net asset value of $7.59 per share) and transferred   
the shares to these distributors.                                               

     AMWAY MUTUAL FUND
     SUPPLEMENTARY INFORMATION
      (SELECTED DATA FOR EACH SHARE OF CAPITAL STOCK OUTSTANDING
      THROUGHOUT EACH PERIOD.)

                                                                [Download Table]


                                                  SIX MONTHS          YEAR ENDED
          FINANCIAL HIGHLIGHTS                       ENDED             DECEMBER 
          --------------------                   JUNE 30, 1998         31, 1997 
            (INTRODUCTION)                        (UNAUDITED)         (AUDITED) 
                                                  -----------         --------- 
                                                                                
Net Asset Value, Beginning of Period              $     7.73          $    7.62 

     INCOME FROM INVESTMENT OPERATIONS                                          
     Net Investment Income                               .04                .09 
     Net Gain (Loss) on Securities (both                                        
       realized and unrealized)                          .74               1.62 
                                                ------------       ------------ 
          Total From Investment Operations               .78               1.71 

     LESS DISTRIBUTIONS                                                         
     Dividends (from net investment income)               --                .10 
     Distributions (from capital gains)                   --               1.50 
     Returns of Capital                                   --                 -- 
                                                ------------       ------------ 
          Total Distributions                             --               1.60 
                                                ------------       ------------ 
Net Asset Value, End of Period                    $     8.51          $    7.73 
                                                ------------       ------------ 
                                                ------------       ------------ 

TOTAL RETURN*                                          10.09%             22.47%
                                                ------------       ------------ 
                                                ------------       ------------ 

RATIOS/SUPPLEMENTAL DATA                                                        
Net Assets, End of Period                        162,289,307        139,163,575 
Ratio of Expenses to Average Net Assets                  .5%                .9% 
Ratio of Net Income to Average Net Assets                .5%               1.1% 
Portfolio Turnover Rate                                52.5%             103.1% 
Average commission rate per share                 $    .0545          $   .0574 

*The 3% sales charge (eliminated April 1, 1998) is not reflected in the total   
return and the six months ended June 30, 1998 is not annualized but an aggregate
total return for the period.                                                    

This report is prepared for the information of shareholders. It is      
authorized for distribution to prospective investors only if preceded or        
accompanied by an effective Prospectus.                                         

      The accompanying notes are an integral part of these financial statements.

10                                                                              

N-30D Last Page of 11 TOC 1st Previous Next ↓Bottom Just 11th
     AMWAY MUTUAL FUND
      ANNUAL SHAREHOLDER MEETING RESULTS

At the Annual Stockholder's Meeting of the Fund, held on April 22, 1998,
in Grand Rapids, Michigan, the Advisory and Service Center Contract between     
the Fund and Amway Management Company, the Sub-Advisory Agreement between       
Amway Management Company and Ark Asset Management Co., Inc., and the            
selection of BDO Seidman, LLP as auditors for the Fund for the calendar year    
l998, were approved. An Amendment to the Fund's Certificate of Incorporation    
to increase the authorized capital from 20,000,000 shares to 40,000,000         
shares of common stock, the Distribution Plan and Agreement for the Fund's      
shares pursuant to Rule 12b-1, and the Agreement and Plan of Reorganization     
were also approved. In addition, elected as Directors for the ensuing year      
were James J. Rosloniec, Allan D. Engel, Richard A. DeWitt, Donald H.           
Johnson, Walter T. Jones and Richard E. Wayman. The following is a tabulation   
of the proxy vote:                                                              

                                                        [Enlarge/Download Table]

          PROPOSALS                      SHARES FOR           SHARES AGAINST       SHARES ABSTAIN   
          ---------                      ----------           --------------       --------------   
                                                                                                    
1)  Election of Directors:                                                                          
    R.A. DeWitt                    11,113,407.889 (57.46%)          0            110,820.683 (0.57%)
    Allan D. Engel                 11,113,000.503 (57.45%)          0            111,228.069 (0.57%)
    Donald H. Johnson              11,094,414.818 (57.36%)          0            129,813.754 (0.67%)
    Walter T. Jones                11,093,575.898 (57.35%)          0            130,652.674 (0.67%)
    J.J. Rosloneic                 11,100,788.222 (57.39%)          0            123,440.350 (0.63%)
    Richard E. Wayman              11,090,412.828 (57.34%)          0            133,815.774 (0.69%)

2)  Approval of the                10,981,839.270 (56.78%)   44,803.201 (0.23%)  197,586.101 (1.02%)
    Investment Advisory                                                                             
    and Service Contract                                                                            
    Between the Fund and                                                                            
    Amway Management Co.                                                                            

3)  Approval of the                10,935,482.259 (56.54%)   52,451.397 (0.27%)  236,294.916 (1.22%)
    Sub-Advisory Contract                                                                           
    Between Amway Mgt.                                                                              
    Co. and Ark Asset Mgt. Co.                                                                      

4)  Ratification of the            10,988,500.122 (56.82%)   30,547.605 (0.16%)  205,180.845 (1.06%)
    Selection of BDO Seidman,                                                                       
    LLP as Auditors                                                                                 

5)  Approval for an Amendment      10,858,090.751 (56.14%)  101,058,598 (0.52%)  265,079.233 (1.37%)
    to the Fund's Certificate of                                                                    
    Incorporation to Increase the                                                                   
    Authorized Capital from                                                                         
    20,000,000 shares to                                                                            
    40,000,000 shares of                                                                            
    common stock,                                                                                   
    $1 Par Value                                                                                    

6)  Approval of a new              10,814,606.290 (55.92%)  142,891.969 (0.74%)  266,730.313 (1.38%)
    Distribution Plan and                                                                           
    Agreement for the Fund's                                                                        
    Shares pursuant to                                                                              
    Rule 12b-1 Under the                                                                            
    Investment Company                                                                              
    Act of 1940                                                                                     

7)  Approval of an                 10,873,983.735 (56.22%)  102,801.162 (0.53%)  247,443.675 (1.28%)
    Agreement and                                                                                   
    Plan of Reorganization                                                                          
    whereby The Fund will                                                                           
    be reorganized as                                                                               
    a series of the Amway                                                                           
    Mutual Fund Trust                                                                               

Total Record date shares were 19,340,683.72, total shares voted were            
11,224,228.572, representing 58.03% of the record date shares voted.            

      The accompanying notes are an integral part of these financial statements.

                                                                              11

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Dates Referenced Herein and Documents Incorporated by Reference

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

Filed on:	8/24/98	2
For Period End:	6/30/98	2	10	NSAR-A
	4/22/98	9	11
	4/1/98	9	10	497
	3/31/98	9
	1/8/98	10
	12/31/97	7		24F-2NT, NSAR-B
				List all Filings

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Filing Submission 0001047469-98-032522 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Activa Mutual Fund Trust – ‘N-30D’ for 6/30/98

As of: Monday, 8/24/98 · For: 6/30/98 · Accession #: 1047469-98-32522 · File #: 811-02168

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