SEC Info - Activa Mutual Fund Trust - ‘N-30D’ for 6/30/99

SEC Info℠

Home

Help

Please Sign In

Activa Mutual Fund Trust – ‘N-30D’ for 6/30/99

On: Tuesday, 8/17/99 · For: 6/30/99 · Accession #: 891804-99-1662 · File #: 811-02168

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

 8/17/99  Activa Mutual Fund Trust          N-30D       6/30/99    1:26K                                    Kelvyn Press Inc/FA

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

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Amway Mutual Fund                                     11     56K 

N-30D 1st Page of 11 TOC ↑Top Previous Next ↓Bottom Just 1st
 
AMWAY MUTUAL FUND                                                               
7575 Fulton Street East                                                         
Ada, Michigan, 49355-7150                                                       

FORWARDING SERVICE REQUESTED                                                    

STANDARD A                                                                      
U.S. POSTAGE                                                                    
PAID                                                                            
SOUTH SUBURBAN, IL                                                              
PERMIT NO. 3602                                                                 

Amway                                                                           
Mutual                                                                          
Fund                                                                            

Semi-Annual                                                                     
Report                                                                          
1999                                                                            

 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, 1999. During the first six  
months of 1999, stock markets continued to hit new highs amid a strong economy  
and low inflation. During the second quarter of 1999, value stocks had an       
advantage over growth stocks as the large cap growth dominance moderated and    
gains in the stock market broadened. This style rotation was positive for your  
Fund, which returned 12.1% in the first half of 1999, compared with a return of 
11.7% for the S&P 500.                                                          
 The fear of rising inflation and the Federal Reserve Bank tightening credit
has lead to instability in the stock markets. We anticipate this instability    
will continue into the second half of 1999. As the cost of borrowing for        
companies increase, they reduce capital investment and profits are reduced.     
Should interest rates continue to rise, your Fund's value strategy should       
cushion any market downturns.                                                   
There are many changes coming to your Fund. We will be introducing a new  
family of funds shortly, expanding your choices of asset classes. Many new      
services will also be added to the family of funds, increasing your options for 
obtaining account and performance information and for buying and selling shares.
We will be launching our web site, with educational and investment tools to     
assist you in reaching your investment goals. Statements showing your account   
balance, asset allocation and transactions during the quarter will be provided  
to you on a quarterly basis. The name of your Fund will change to Activa Value  
Fund, as part of your new Activa Mutual Fund family. Be on the lookout for more 
information on the new funds and services in the near future.                   
   We have been working hard to bring the latest technology and highest level of
service to your Fund. We know you will be pleased with the changes and the many 
new options that will be available.                                             
Sincerely,                                                                      

James J. Rosloniec                                                              
President                                                                       

Trustees                                                                        
Richard A. DeWitt                                                               
Allan D. Engel                                                                  
Donald H. Johnson                                                               
Walter T. Jones                                                                 
James J. Rosloniec                                                              
Richard E. Wayman                                                               

Transfer Agent                                                                  
Amway Management Company                                                        
7575 Fulton Street East                                                         
Ada, Michigan  49355-7150                                                       

Custodian                                                                       
The Northern Trust Company                                                      
50 South LaSalle Street                                                         
Chicago IL 60675                                                                

Auditors                     Investment Adviser                                 
BDO Seidman, LLP             Amway Management Company                           
99 Monroe Avenue, NW         7575 Fulton Street East                            
Grand Rapids Michigan 49503  Ada, Michigan 49355-7150                           

Legal Matters                Sub-Advisor                                        
John Dougherty               Ark Asset Management Co., Inc.                     
Attorney at Law              125 Broad Street                                   
55 Connecticut Ave., NW      12th Floor                                         
Washington DC 20035          New York, NY 10004                                 

                                                             August 20, 1999

2 

N-30D 2nd Page of 11 TOC 1st Previous Next ↓Bottom Just 2nd
 AMWAY MUTUAL FUND
 SCHEDULE OF INVESTMENTS
 June 30, 1999 (Unaudited)

                                      % of          Shares or       Market
                                   Investments      Par Value        Value
                                      -----------     -----------    -----------

BANKING                                  7.32%                                  
 Bank of America Corporation                          73,600       5,395,800
 Bank One Corp.                                       39,400       2,346,763
 BankBoston Corp.                                     80,500       4,115,563
 Keycorp.                                             17,900         575,037
 Washington Mutual, Inc.                             101,400       3,587,025
                                                                ------------
                                                                  16,020,188
                                                                ------------

BUSINESS SERVICES                        1.94%                                  
 Bell Atlantic Corp.                                  64,864       4,240,484
                                                                ------------

CHEMICALS & ALLIED PRODUCTS              3.24%                                  
 Air Products & Chemicals, Inc.                       83,100       3,344,775
 DuPont (E. I.) De Nemours                            54,800       3,743,525
                                                                ------------
                                                                   7,088,300
                                                                ------------

COMMUNICATION                            5.81%                                  
 AT&T Corp.                                           57,200       3,192,475
 GTE Corp.                                            69,600       5,272,200
 US West, Inc.                                        72,400       4,253,500
                                                                ------------
                                                                  12,718,175
                                                                ------------

CREDIT AGENCIES OTHER THAN BANKS         0.83%                                  
 Household International, Inc.                        38,200       1,809,725
                                                                ------------

ELECTRIC & ELECTRONIC EQUIPMENT          5.55%                                  
 Alliedsignal, Inc.                                   31,000       1,953,000
 Compaq Computer Corp.                               181,000       4,287,438
 Emerson Electric Co.                                 47,500       2,986,563
 Raytheon Co. Class A                                 30,700       2,114,462
 Raytheon Co. Class B                                 11,500         809,312
                                                                ------------
                                                                  12,150,775
                                                                ------------

ELECTRIC, GAS, & SANITARY SERVICES       6.34%                                  
 American Electric Power Co.                          47,000       1,765,438
 FPL Group, Inc.                                      39,200       2,141,300
 FirstEnergy Corp.                                    78,100       2,421,100
 Public Service Enterprises Group                     48,800       1,994,700
 Texas Utilities Co.                                  68,400       2,821,500
 Waste Management Inc.                               *50,800       2,730,500
                                                                ------------
                                                                  13,874,538
                                                                ------------

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

3 

N-30D 3rd Page of 11 TOC 1st Previous Next ↓Bottom Just 3rd
 AMWAY MUTUAL FUND
 SCHEDULE OF INVESTMENTS
 June 30, 1999 (Unaudited)

                                      % of          Shares or       Market
                                   Investments      Par Value        Value
                                      -----------     -----------    -----------

FABRICATED METAL PRODUCTS                2.96%                                  
 Crown Cork & Seal Company                            89,500       2,550,750
 Masco Corp.                                         135,800       3,921,225
                                                                ------------
                                                                   6,471,975
                                                                ------------

FOOD AND KINDRED PRODUCTS                5.27%                                  
 Archer-Daniels-Midland                              273,410       4,220,767
 BestFoods                                            32,900       1,628,550
 Conagra, Inc.                                       121,800       3,242,925
 The Pepsi Bottling Group, Inc.                      106,000       2,444,625
                                                                ------------
                                                                  11,536,867
                                                                ------------

FURNITURE AND FIXTURES                   1.59%                                  
 Newell Rubbermaid, Inc.                              74,800       3,478,200
                                                                ------------

GENERAL MERCHANDISE STORES               4.69%                                  
 Federated Department Stores                         *78,700       4,166,181
 May Dept. Stores Co.                                 80,450       3,288,394
 Sears, Roebuck & Company                             63,100       2,811,894
                                                                ------------
                                                                  10,266,469
                                                                ------------

HEALTH SERVICES                          1.27%                                  
 Tenet Healthcare Corp.                             *149,600       2,776,950
                                                                ------------

INSTRUMENTS AND RELATED PRODUCTS         3.78%                                  
 Baxter International, Inc.                           71,900       4,358,937
 Eastman Kodak Co.                                    57,800       3,915,950
                                                                ------------
                                                                   8,274,887
                                                                ------------

INSURANCE AGENTS, BROKERS, & SERVICE     1.44%                                  
 Cigna Corp.                                          35,400       3,150,600
                                                                ------------

INSURANCE CARRIERS                      10.29%                                  
 Aetna Inc.                                           60,100       5,375,194
 Allstate Corp.                                      118,900       4,265,538
 Chubb Corp.                                          71,100       4,941,450
 Loews Corp.                                          21,500       1,701,187
 St. Paul Cos., Inc.                                 105,000       3,340,312
 Unum Corp.                                           52,700       2,885,325
                                                                ------------
                                                                  22,509,006
                                                                ------------

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

4 

N-30D 4th Page of 11 TOC 1st Previous Next ↓Bottom Just 4th
 AMWAY MUTUAL FUND
 SCHEDULE OF INVESTMENTS
 June 30, 1999 (Unaudited)

                                    % of          Shares or       Market
                                 Investments      Par Value        Value
                                    -----------     -----------    -----------

MACHINERY, EXCEPT ELECTRICAL            2.32%                                   
Deere & Co.                                         78,100       3,094,713
Seagate Technology                                 *77,700       1,991,062
                                                              ------------
                                                                 5,085,775
                                                              ------------

OIL AND GAS EXTRACTION                 12.03%                                   
Burlington Resources                                83,000       3,589,750
Conoco, Inc. CL A                                  170,000       4,738,750
Halliburton Co.                                     52,700       2,384,675
Occidental Petroleum Corp.                          89,500       1,890,688
Praxair, Inc.                                       74,400       3,640,950
Schlumberger Ltd.                                   18,300       1,165,481
Tenneco, Inc.                                       48,500       1,157,937
USX-Marathon Group                                  52,600       1,712,787
Union Pacific Resources                            147,000       2,397,938
Unocal Corp.                                        91,800       3,637,575
                                                              ------------
                                                                26,316,531
                                                              ------------

PAPER & ALLIED PRODUCTS                 6.66%                                   
Champion International Corp.                        63,200       3,025,700
Fort James Corp.                                   117,100       4,435,163
International Paper Co.                             85,800       4,332,900
Kimberly-Clark Corp.                                48,600       2,770,200
                                                              ------------
                                                                14,563,963
                                                              ------------

PETROLEUM & COAL PRODUCTS               2.15%                                   
Amerada Hess Corp.                                  39,800       2,368,100
Atlantic Richfield Company                          15,600       1,303,575
Texaco, Inc.                                        15,200         950,000
Tosco Corp.                                          3,200          83,000
                                                              ------------
                                                                 4,704,675
                                                              ------------

PRINTING AND PUBLISHING                 0.93%                                   
Gannett Co.                                         28,500       2,034,187
                                                              ------------

RAILROAD TRANSPORTATION                 5.05%                                   
Burlington Northern Santa Fe                       143,400       4,445,400
CSX Corp.                                           83,800       3,797,188
Norfolk Southern Corp.                              93,100       2,804,637
                                                              ------------
                                                                11,047,225
                                                              ------------

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

5 

N-30D 5th Page of 11 TOC 1st Previous Next ↓Bottom Just 5th
 AMWAY MUTUAL FUND
 SCHEDULE OF INVESTMENTS
 June 30, 1999 (Unaudited)

                                      % of          Shares or       Market
                                   Investments      Par Value        Value
                                      -----------     -----------    -----------

RUBBER AND MISC. PLASTICS PRODUCTS       1.53%                                  
 Goodyear Tire & Rubber Co.                           56,800       3,340,550
                                                                ------------

STONE, CLAY & GLASS PRODUCTS             1.16%                                  
 PPG Industries                                       43,100       2,545,594
                                                                ------------

TRANSPORTATION EQUIPMENT                 4.28%                                  
 Dana Corp.                                          102,400       4,716,800
 Ford Motor Co.                                       34,700       1,958,381
 Lockheed Martin Corp.                                72,500       2,700,625
                                                                ------------
                                                                   9,375,806
                                                                ------------

WHOLESALE TRADE - DURABLE GOODS          0.66%                                  
 Delphi Automotive Systems                            77,800       1,444,162
                                                                ------------

WHOLESALE TRADE - NONDURABLE GOODS       0.91%                                  
 McKesson HBOC, Inc.                                  62,000       1,991,750
                                                                ------------

Total Common Stock (Cost $207,439,451) 100.00%                   $218,817,357   
                                                                ============

*Non-dividend producing as of  June 30, 1999                                    

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

6 

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, 1999 (Unaudited)

ASSETS                                                                          
Investments in securities, at market                                        
(identified cost $207,439,451)                                            
(Notes 1 and 5)                      $218,817,357                         
Cash                                         514,589                            
Receivables:                                                                    
Securities sold                           954,089                         
Dividends                                 449,868                         
Fund shares sold                          102,945                         
Interest                                   25,335                         
Miscellaneous                               1,953                         
Prepaid insurance                            5,326                          
Reorganization costs                       122,906                          
             -----------
TOTAL ASSETS                             220,994,368                            

LIABILITIES                                                                     
Accounts payable:                                                           
Advisory fee (Note 6)                     257,898                         
Fund shares redeemed                      231,183                         
12b-1 fee (Note 6)                        128,011                         
Transfer agent fee (Note 6)                65,388                         
             -----------
TOTAL LIABILITIES                            682,480                            
             -----------

NET ASSETS                                                                  
Capital stock (40,000,000 shares                                            
of $1.00 par value authorized),                                           
amount paid in on 27,358,945                                              
shares outstanding (Note 4)           196,970,527                         
Undistributed net investment                                                
income                                  1,141,104                         
Accumulated net realized                                                    
gain on investments                    10,822,350                         
Net unrealized appreciation                                                 
on investments                         11,377,907                         
             -----------

TOTAL NET ASSETS                                                                
(equivalent to $8.05 per share)       $220,311,888                          
             ===========

Net asset value per share:                                                  
Class A - based on net assets                                               
of $219,806,609 and 27,295,992                                            
shares outstanding                         $8.05                          
Class R - based on net assets                                               
of $505,279 and 62,953                                                    
shares outstanding                         $8.03                          

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

7 

N-30D 7th Page of 11 TOC 1st Previous Next ↓Bottom Just 7th
 AMWAY MUTUAL FUND
 STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED
 June 30, 1999 (Unaudited)

INVESTMENT INCOME                                                               
Income                                                                      
Dividends                              $1,986,273                         
Interest                                  110,900                         
Securities litigation settlement            3,846                         
             -----------
Total income                             2,101,018                          

Expenses                                                                    
Advisory fee (Note 6)                     487,902                         
12b-1 fee - Class A (Note 6)              238,570                         
Transfer agent fees - Class A (Note 6)    129,506                         
Transfer agent fees - Class R (Note 6)        413                         
Custodian fee                              25,521                         
Legal services                             20,815                         
Shareholder communications                 18,100                         
Data processing service (Note 7)           15,558                         
Amortization of reorganization costs       15,075                         
Audit fees                                 13,213                         
Registration fees                          11,403                         
Insurance                                   5,950                         
             -----------
Total expenses                             982,024                          
Fees paid indirectly (Note 7)             -15,558                         
             -----------
Net expenses                               966,466                          
             -----------
NET INVESTMENT INCOME                      1,134,552                            

REALIZED AND UNREALIZED                                                         
GAIN ON INVESTMENTS                                                             
Net realized gain (Note 5)              11,400,567                          
Unrealized appreciation on                                                  
investments                                                                 
Beginning of year                       2,459,552                         
June 30, 1999                          11,377,907                         
             -----------
Net change in unrealized                                                    
appreciation on investments              8,918,355                          
             -----------
NET GAIN ON INVESTMENTS                   20,318,922                            
             -----------

NET INCREASE IN NET ASSETS                                                      
RESULTING FROM OPERATIONS                $21,453,474                            
             ===========

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

8 

N-30D 8th Page of 11 TOC 1st Previous Next ↓Bottom Just 8th
                                                        [Enlarge/Download Table]


                                AMWAY MUTUAL FUND                                                        
                       STATEMENT OF CHANGES IN NET ASSETS                                                

                                                                      Six Months Ended     Year Ended    
                                                                        June 30, 1999   December 31, 1998
                                                                        (Unaudited)          (Audited)   

NET ASSETS FROM OPERATIONS                                                                               
                                                                                                         
   Net investment income                                               $ 1,134,552         $ 1,665,189   
   Net realized gain on investments                                     11,400,567          25,406,792   
   Net increase (decrease) in unrealized appreciation                    8,918,355         (10,357,465)  
                                                                       -----------         -----------   
   Net increase in net assets resulting from operations                 21,453,474          16,714,516   
                                                                       -----------         -----------   

DISTRIBUTIONS TO SHAREHOLDERS (Note3) Net investment:                                                    
   Class A                                                                      --          (1,662,878)  
   Class R                                                                      --              (1,625)  
   Net realized gain from investment transactions:                                                       
   Class A                                                                      --         (25,670,393)  
   Class R                                                                      --             (19,517)  
                                                                       -----------         -----------   
   Total distributions to shareholders                                          --         (27,354,413)  
                                                                       -----------         -----------   

CAPITAL SHARE TRANSACTIONS (Notes 4 and 6)                                                               
Net proceeds from sale of shares:                                                                        
   Class A                                                              31,935,180          65,648,672   
   Class R                                                                 352,185             135,152   
   Net asset value of shares issued to shareholders in reinvestment of                                   
   investment income and realized gain from security transactions:                                       
   Class A                                                                      --          25,976,297   
   Class R                                                                      --              21,142   
   Payment for shares redeemed:                                                                          
   Class A                                                             (13,384,295)        (40,349,536)  
   Class R                                                                     (61)                 --   
                                                                       -----------         -----------   
   Net increase in net assets derived from                                                               
   capital share transactions                                           18,903,009          51,431,727   
                                                                       -----------         -----------   
   Net Increase in Net Assets                                           40,356,483          40,791,830   
NET ASSETS                                                                                               
   Beginning of period                                                 179,955,405         139,163,575   
                                                                       -----------         -----------   
   End of period (includes undistributed net investment income of                                        
      $1,141,104 and $6,548, respectively)                            $220,311,888        $179,955,405   
                                                                       ===========         ===========   


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

9 

N-30D 9th Page of 11 TOC 1st Previous Next ↓Bottom Just 9th
 AMWAY MUTUAL FUND
 NOTES TO FINANCIAL STATEMENTS
 (Unaudited)

NOTE 1-SIGNIFICANT ACCOUNTING POLICIES                                          

 Amway Mutual Fund (Fund) is a series of Amway Mutual Fund Trust (Trust), an
open-end management investment company registered under the Investment Company  
Act of 1940. The Trust was organized as a Delaware business trust on February 2,
1998. The Fund is the successor of Amway Mutual Fund, Inc. (See Note 2)         

   (A)  Share Class-The Fund offers two classes of shares (Class A and Class
R). Each share of Class A and Class R represents an equal   
          proportionate interest in the Fund and, generally, will have identical
          voting, dividend, liquidation, and other rights and the same terms and
         conditions. Each class will have exclusive voting rights with respect
    to matters affecting only that class. Each class bears different
    distribution, shareholder servicing and transfer agent expenses.
      Income, non-class specific expenses, and realized and realized and
         unrealized gains or losses on investments are allocated to each class
of shares based on its relative net assets.                 

 (B)  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 ask prices. Securities for which
         market quotations are not readily available, including any restricted
        securities (none at June 30, 1999), and other assets of the Fund are
         valued at fair market value as determined in good faith by the Fund's
Board of Trustees.                                          

(C)  Federal Income Taxes-It is the Fund's policy 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.                                                      

(D)  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.                                           

   (E)  Reorganization Costs-Costs incurred during the Fund's reorganization
          and issuance of Class R shares are being amortized over a period of 60
months using the straight-line method.                      

NOTE 2-REORGANIZATION AND REGISTRATION OF CLASS R SHARES                        

The Fund, formerly Amway Mutual Fund, Inc., was reorganized as a series of
the Trust in accordance with the Agreement and Plan of Reorganization, approved 
on April 28, 1998 by the shareholders and Board of Trustees of Amway Mutual     
Fund, Inc.                                                                      
   In 1998, the Fund began offering Class R shares, following their registration
with the SEC on November 1, 1998. These shares are offered to tax-exempt        
retirement and benefit plans of Amway Corporation and its affiliates, and are   
not subject to any sales charges or 12b-1 distribution fees.                    

NOTE 3-DISTRIBUTION TO SHAREHOLDERS                                             

On December 18, 1998, a distribution of $1.3117 and $1.3345 aggregating   
$27,333,271 and $21,142 was declared from ordinary income and net realized gains
from investment transactions (including $.6516 applicable to short-term gains   
that are taxable to shareholders as ordinary income dividends and $.5803        
applicable to long-term gains) during 1998, for Class A and Class R,            
respectively. The dividend was paid on December 23, 1998 to shareholders of     
record on December 17, 1998.                                                    

10

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

NOTE 4-CAPITAL STOCK                                                            

At June 30, 1999, there were 40,000,000 shares of $1.00 par value capital 
stock authorized. Transactions in capital stock were as follows:                

                                                        [Enlarge/Download Table]


                                               Six Months                 Year Ended     
                                                 Ended                      December     
                                             June 30, 1999                 31, 1998      
                                             ------------                ------------    

Shares                                  Class A       Class R      Class A        Class R
                                        -------       -------      -------        -------
                                                                                         
   Outstanding, beginning of period  25,036,115         18,916  17,999,216             --
   Sold                               4,054,209         44,045   8,659,484         15,908
   Issued in payment of dividends            --             --   3,684,581          3,008
                                      ---------      ---------   ---------      ---------
                                      4,054,209         44,045  12,344,065         18,916
   Redeemed                           1,794,332              8   5,307,166             --
                                      ---------      ---------   ---------      ---------
   Net increase for the period        2,259,877         44,037   7,036,899         18,916
                                      ---------      ---------   ---------      ---------
   Outstanding, end of period        27,295,992         62,953  25,036,115         18,916

NOTE 5-INVESTMENT TRANSACTIONS                                                  

  At June 30, 1999, the cost of investments owned was $207,842,402 for federal
income tax purposes. Aggregate gross unrealized gains on securities in which    
there was an excess of market value over tax cost were $19,103,620. Aggregate   
gross unrealized losses on securities in which there was an excess of tax cost  
over market value were $8,128,664. Net unrealized gains for tax purposes were   
$10,974,956 at June 30, 1999.                                                   
Realized gains from sales of investments were determined on the basis of  
specific identification. For tax purposes gains of $11,287,558 were realized on 
investments.                                                                    
   For the period ended June 30, 1999, cost of purchases and proceeds from sales
of investments, other than corporate short-term notes, aggregated $94,400,821   
and $68,912,546, respectively.                                                  

NOTE 6-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          
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 $487,902 for the period ended June 30, 1999.   

11

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

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 advice 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 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.                                                
Under the Plan and Agreement of Distribution, pursuant to Rule 12b-1 under
the Investment Company Act of 1940 with Amway Management Company (AMC), which   
became effective on April 22, 1998, AMC provides services in connection with    
distributing the Fund's shares. For these services rendered, the Fund           
compensates AMC at a maximum annual rate of .25 of 1% of the average net assets 
of the Fund.                                                                    
  The Fund has a transfer agency and dividend disbursing agency agreement with
AMC. Under this agreement, AMC is the agent for transfer of the Fund's shares   
and disbursement of the Fund's distributions. The fees incurred by the Fund in  
connection with these services were $129,506 and $413 for Class A and Class R,  
respectively, for the period ended June 30, 1999.                               
A beneficial shareholder of Amway Management Company is also a beneficial 
shareholder of 42.5% (as of June 30, 1999) 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 $30,000, for the period ended June 30, 1999, were paid by Amway    
Management Company, the Fund's investment advisor. The trustees' payments       
consist of an annual retainer plus a per meeting fee.                           

NOTE 7-DATA PROCESSING SERVICE                                                  

 Portfolio accounting services for the Fund in the amount of $15,558 for the
period ended June 30, 1999 are paid for through the use of directed brokerage   
commissions.                                                                    

NOTE 8-RELATED PARTY TRANSACTION                                                

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 14,   
1999, the Corporations purchased 353,892 Amway Mutual Fund shares valued at     
$2,526,792 (based on the net asset value of $7.14 per share) and transferred the
shares to these distributors.                                                   

FINANCIAL HIGHLIGHTS

(Selected data for each share of capital
stock outstanding throughout each period.)

                                                        [Enlarge/Download Table]


                                                        Six Month Ended                Year Ended      
                                                         June 30, 1999              December 31, 1998  
                                                          (unaudited)                   (audited)      

                                                  Class A         Class R       Class A       Class R* 
                                                 --------        --------      --------       -------- 
                                                                                                       
Net Asset Value, beginning of period                $ 7.18         $ 7.16         $ 7.73        $ 8.42 
                                               -----------       --------    -----------      -------- 
   Income (loss) from investment operations:                                                           
   Net investment income                               .04            .02            .08           .09 
   Net realized and unrealized gain                                                                    
      (loss) on securities                             .83            .85            .68          (.02)
                                               -----------       --------    -----------      -------- 
   Total income (loss) from                                                                            
      investment operations                            .87            .87            .76           .07 
                                               -----------       --------    -----------      -------- 
   Distributions:                                                                                      
   Dividends from net investment income                 --             --            .08           .10 
   Distributions from capital gains                     --             --           1.23          1.23 
                                               -----------       --------    -----------      -------- 
      Total distributions                               --             --           1.31          1.33 
                                               -----------       --------    -----------      -------- 
Net Asset Value, end of period                      $ 8.05         $ 8.03         $ 7.18        $ 7.16 
                                               ===========       ========    ===========      ======== 

Total Return**                                       12.12%         12.15%         10.17%         7.08%

RATIOS/SUPPLEMENTAL DATA                                                                               
Net assets, end of period                     $219,806,609       $505,279   $179,820,020      $135,385 
Ratio of expenses to average net assets                .5%            .5%           1.0%          1.0% 
Ratio of net income (loss) to average                                                                  
   net assets                                          .6%            .6%           1.0%          1.8% 
Portfolio turnover rate                              37.0%          37.0%         101.1%        101.1% 
Average commission rate paid per                                                                       
   share for portfolio transactions                $ .0500        $ .0500        $ .0521       $ .0521 


*The Fund began offering Class R Shares on November 1, 1998. Class R's return   
and ratios have been annualized.                                                

**The six months ended June 30, 1999 is not annualized but an aggregate total   
return for the period.                                                          

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

N-30D	1st Page of 11	TOC	↑Top	Previous	Next	↓Bottom	Just 1st

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

N-30D	3rd Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 3rd

N-30D	4th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 4th

N-30D	5th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 5th

N-30D	6th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 6th

N-30D	7th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 7th

N-30D	8th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 8th

N-30D	9th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 9th

N-30D	10th Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 10th

N-30D	Last Page of 11	TOC	1st	Previous	Next	↓Bottom	Just 11th

Dates Referenced Herein and Documents Incorporated by Reference

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

	8/20/99	1
Filed on:	8/17/99
For Period End:	6/30/99	1	11	NSAR-A
	1/14/99	11
	12/31/98	8	11	24F-2NT, NSAR-B
	12/23/98	9
	12/18/98	9
	12/17/98	9
	11/1/98	9	11
	4/28/98	9
	4/22/98	11
	2/2/98	9
				List all Filings

↑Top

Filing Submission 0000891804-99-001662 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Activa Mutual Fund Trust – ‘N-30D’ for 6/30/99

On: Tuesday, 8/17/99 · For: 6/30/99 · Accession #: 891804-99-1662 · File #: 811-02168

Previous ‘N-30D’: ‘N-30D’ on 8/24/98 for 6/30/98 · Next: ‘N-30D’ on 2/22/00 for 12/31/99 · Latest: ‘N-30D’ on 3/4/03 for 12/31/02

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