Kent Funds – ‘N-30D’ for 7/31/01

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

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Kent Funds Annual Report                             276±  1.14M 

Document Table of Contents

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[LOGO] KENT FUNDS                                                               

Annual                                                                          
Report                                          

JULY 31, 2001                                                                   

EQUITY FUNDS                    
Kent Growth and Income Fund     
Kent Index Equity Fund          
Kent Large Company Growth Fund  
Kent Small Company Growth Fund  
Kent International Growth Fund  

BOND FUNDS                      
Kent Income Fund                
Kent Intermediate Bond Fund     
Kent Short Term Bond Fund       

MUNICIPAL BOND FUNDS            
Kent Tax-Free Income Fund       
Kent Intermediate Tax-Free Fund 
 Kent Michigan Municipal Bond Fund

MONEY MARKET FUNDS              
Kent Money Market Fund          
 Kent Government Money Market Fund
         Kent Michigan Municipal Money Market Fund

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                                                         Message to Shareholders

Dear Kent Funds Shareholder:                                                    

The following is the Annual Report of the Kent Funds for the seven-month      
period ended July 31, 2001. The report is for this abbreviated period because   
the fiscal year of the Kent Funds was changed from the calendar year to the     
year ended July 31. This change was made to facilitate the Kent Funds' merger   
with the Fifth Third Funds which have a July 31 fiscal year-end.                

Plans for the merger, which is to be completed after close of business on     
October 26, 2001, continue on pace. The merger was approved by Kent Funds'      
shareholders on July 27, 2001.                                                  

On behalf of the Board of Trustees and officers of the Kent Funds, I thank you
for the confidence you placed in the Kent Funds over the years and assure you   
it was a pleasure serving you. We know we will be leaving you in very capable   
hands with the Fifth Third Funds.                                               

I encourage you to explore the Fifth Third Funds which, after the merger, will
be comprised of 31 fund choices including many of the Kent Fund portfolios. The 
outstanding array of investment styles represented by the Fifth Third Funds     
includes offerings that are consistent with the investment strategies of a      
broad spectrum of investors.                                                    

To learn more about how the Fifth Third Funds may play a role in your         
investment plans, please consult your financial advisor, or if you do not have  
one, contact a Fifth Third Securities, Inc. Investment Executive at 1-800-334-  
0483. You can also review information describing the Fifth Third Funds and      
their performance by visiting www.53.com.                                       

If you have any questions about this Annual Report, please call a Kent Funds  
Shareholder Servicing Representative at 1-800-633-KENT(5368).                   

Sincerely,                                                                      

/s/ James F. Duca, II                                                           

James F. Duca, II                                                               
President                                                                       

Shares of the Funds are not deposits or obligations of, or                    
guaranteed or endorsed by, Fifth Third Bank, Old Kent Bank                    
or any of their affiliates. Shares of the funds are not                       
federally insured by the U.S. Government, the Federal                         
Deposit Insurance Corporation, the Federal Reserve Board or                   
any other agency. Investment return and principal value will                  
vary as a result of market conditions and other factors, so                   
that shares of the funds, when redeemed, may be worth more                    
or less than their original cost. An investment in the funds                  
involves investment risks, including the possible loss of                     
principal. There can be no assurance that the money market                    
funds will be able to sustain a stable net asset value of                     
$1.00 per share.                                                              

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

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

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Economic Outlook                                                                

I. Real Economic Activity                                                       

A.  Slowdown Continues as Final Demand Falls.                                   

The economy eked out a small gain during the second quarter, growing at a 0.7 
percent annual rate. This represents the slowest quarterly growth rate for the  
U.S. economy since a 0.1 percent decline in the first quarter of 1993. The      
profits recession has caused a dramatic cutback in business capital spending,   
which combined with a further cooling of consumer spending pushed the economy   
perilously close to a recession. The economy has now advanced at a rate below   
two percent for four straight quarters. The last time that occurred was during  
the 1990-91 recession.                                                          
While the headline real Gross Domestic Product/1/ (GDP) figure for the second 
quarter did not display any particular strength, it actually masked an even     
weaker outcome for final demand. Domestic private final sales (the sum of con-  
sumer spending, business capital spending and housing outlays) actually fell    
at a 0.2 percent rate compared to a fairly healthy rise of 2.8 percent during   
the first quarter. This represented the first drop in domestic private final    
sales since the first quarter of 1991. Consequently, the anatomy of the weak    
second quarter real GDP figure contrasts sharply with that of the first quar-   
ter.                                                                            
In the first quarter, GDP growth was held down by a sharp drop in inventory   
building. For the first time in a decade, businesses actually liquidated        
inventories as they responded swiftly to a slower pace of demand. The massive   
swing in inventories from accumulation to outright decline subtracted three     
full percentage points from the first quarter real GDP growth rate. In the      
second quarter, inventories were liquidated at approximately the same pace as   
in the previous quarter resulting in no net impact on the second quarter        
growth figure.                                                                  

[GRAPH]                           

  Consumer Spending*
 second Quarter 2001

Personal Consumption Expenditures       2.1%                                    
Durable Goods                           6.0%                                    
Motor Vehicles                          4.0%                                    
Furniture & Appliances                  9.6%                                    
Nondurable Goods                        0.4%                                    
Apparel                                 1.2%                                    
Gasoline                               -5.4%                                    
Services                                2.2%                                    

*Annualized                                                                     

B.  Business Capital Spending Plunges.                                          

The weakness in final demand last quarter was primarily the result of a       
plunge in business capital spending, reflecting the continuing troubles in the  
technology and telecommunications industries and a sudden drop in structure     
outlays. The weakness in the economy remains centered in the business commu-    
nity which has undertaken a concerted cost cutting effort in an attempt to      
maintain profitability or minimize losses.                                      
What has resulted is a very different pattern to the economic slowdown. Nor-  
mally, the economic cycle starts downward when consumers face higher interest   
rates, as they did in the latter half of 1999 and the first half of 2000, and   
cut back on their expenditures. This prompts companies to lower production      
levels and their capital spending plans. During this cycle, however, consumer   
spending continued to grow and housing remained reasonably strong, but compa-   
nies curtailed production and fur-                                              

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

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ther capital investments, particularly in the area of computers, software, and  
telecommunications equipment.                                                   
Business capital spending on equipment has now fallen for three consecutive   
quarters, for the first time since 1982-83 when the economy was in recession.   
The severity of the pullback intensified with last quarter's 14.5 percent rate  
of decline being the largest since the second                                   
quarter of 1982. Outlays for high technology equipment have been hit the hard-  
est, bearing over three quarters of the decline in equipment and software       
expenditures.                                                                   
Industrial and transportation equipment outlays were not spared either,       
declining at rates of 17.3 percent and 5.1 percent, respectively. Structure     
outlays, which had risen for six consecutive quarters, reversed course quickly  
with an 11.2 percent rate of decline. The sharp drop in the overall capacity    
utilization rate to 77.0 percent (an 18-year low) and in the high technology    
sector to 67.5 percent (a 26-year low) combined with aggressive cost cutting    
efforts is behind the rapid falloff in business capital spending for both       
equipment and structures.                                                       

[GRAPH]                     

         Real Economic Activity*
        2001
        1Q      2Q

Gross Domestic Product                1.3%    0.7%                              
Domestic Private Final Sales          2.8%   -0.2%                              
Personal Consumption Expenditures     3.0%    2.1%                              
Business Capital Spending            -0.2%  -13.6%                              
Housing Outlays                       8.5%    7.4%                              

*Annualized                                                                     

C.  Consumer Spending Remains Resilient in the Face of Rising Layoffs.          

While slowing a bit last quarter, consumer spending has proved to be very     
resilient during the recent slowdown. Durable goods outlays led the way with    
strong gains in automobile and light truck sales and in furniture and appli-    
ances. Aggressive discounting in the vehicle sector designed to capture addi-   
tional marketshare and to avoid an unwanted buildup of inventories contributed  
to a 4.0 percent advance in motor vehicle sales. Strength in the housing mar-   
ket translated into a 9.6 percent rate of gain in furniture and appliances      
last quarter, placing the home furnishings category 6.7 percent ahead of year   
ago levels. This is particularly impressive in light of the recent accelera-    
tion in layoffs as most household purchases fall into the easily postponable    
grouping. We feel the surge                                                     
in mortgage refinance activity late last year and earlier this year, particu-   
larly with the "cash out" option, has provided a good deal of the support to    
the home furnishings sector.                                                    

The one area that could be exhibiting some stress from the worsening condi-   
tions in the labor market is outlays for non-durable goods which rose at only   
a 0.4 percent rate. While most necessities fall into this category, in tough    
times consumers will gravitate toward lower quality goods and delay purchases   
to the extent possible. Gasoline purchases fell at a 5.4 percent rate with the  
spike in gasoline prices during the spring.                                     

D.  Housing, Road Repairs and School Buildings to the Rescue.                   

Residential construction outlays rose at a 7.4 percent rate, following an 8.5 
percent rate of gain during the first quarter. The year-long decline in mort-   
gage rates has significantly improved housing affordability and bolstered the   
housing industry despite the growing weakness in the labor market. Housing      
starts have risen 12.3 percent since July of last year and existing home sales  
continue to run near record high levels.                                        
The strongest sector of the economy last quarter was state and local govern-  
ment expenditures, which grew at a 7.5 percent rate. In particular, the         
investment category grew at a 24.9 percent rate. Included in this sector is     
road                                                                            

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Economic Outlook                                                                

and sewer work and municipal structures, such as school buildings. Without the  
surge in expenditures at the state and local level last quarter, the headline   
real GDP figure would have fallen negative. This may be the only positive thing 
associated with the road construction delays we all endure during the summer    
months.                                                                         
E.  The Worst is Behind Us.                                                     

Business inventories were liquidated at roughly a $27.0 billion rate for the  
second quarter in a row. With the recently reported overall business            
inventory/sales ratio falling in May to its lowest level of the year, it        
appears that the inventory adjustment outside of the technology and telecommu-  
nications sectors has largely run its course.                                   

[GRAPH]                             

Business Capital Spending+            
Second Quarter 2001*              

Business capital spending          -13.6%                                       
equipment and software             -14.5%                                       
high technology                    -19.0%                                       
Industrial                         -17.3%                                       
Transportation                      -5.1%                                       
Structures                         -11.2%                                       
Buildings                          -18.4%                                       
44.0%   

*Annualized                                                                     

Inventory liquidation can stop even if high technology inventories still are  
being liquidated because they are not an especially large portion of business   
inventories overall, at roughly ten percent of manufacturing inventories. Addi- 
tionally, the domestic production--but not the distribution--of high technology 
goods is slightly less than two percent of total real GDP.                      
This leads us to believe that the stage is being set for a further upturn in  
orders. The orders component of the National Association of Purchasing Managers 
Survey/2/ (NAPM) has improved by 28.6 percent since its low point in January. A 
healthy pattern of new orders must be established before manufacturing produc-  
tion can advance.                                                               
Increasingly, it looks like the sharp deceleration in the pace of economic    
activity is drawing to a close. Consumer spending has held up surprisingly      
well, consumer confidence readings have moved to their high point for the year, 
the housing market remains resilient, the leading economic indicator series has 
risen for three straight months, and the sharp deterioration in business capi-  
tal spending may well have run its course. While the economy is clearly not     
robust, there should be no further deceleration in the economy's tempo.         
With the six hefty interest rate cuts by the Federal Reserve since January,   
there is considerable monetary stimulus already in the pipeline poised to give  
the staggering economy a boost. As it typically takes a minimum of six months   
for interest rate cuts to work their way through the economy, and with the      
first cut having occurred on January 3, the economic data won't begin to        
reflect even the Federal Reserve's first efforts until early in the current     
quarter.                                                                        

/1/Gross Domestic Product (GDP) is the market value of the goods and services   
produced by labor and property in the United States. The GDP is made up of      
consumer and government purchases, private domestic investments and net exports 
of goods and services.                                                          
/2/The National Association of Purchasing Managers (NAPM) Index is based on a   
national survey of purchasing managers which covers such indicators as new      
orders, production, employment, inventories, delivery times, price, export      
orders and import orders. The index is one of the first comprehensive economic  
releases of the month, typically preceding the employment report.               
+The information contained herein is based on Commerce Department data released 
July 27, 2001.                                                                  

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Tax cuts are on the way in the form of refund checks and lower withholding    
rates which combined will total $50 billion in the second half of 2001 and $80  
billion in 2002. The refund checks will provide the economy with a steady       
stream of liquidity into October and we anticipate that the majority of the     
tax refund will be spent.                                                       
Taken together, we feel there is reason to believe that the economy has       
weathered the worst and is poised to rebound in the coming months. We expect    
the economy to move toward a trend growth rate of 3.0 to 3.5 percent, but not   
higher due to the lingering drags from the labor market and business capital    
spending. Companies are not expected to resume hiring or undertake new capital  
spending initiatives until profitability rebounds in the latter part of this    
year or into early 2002.                                                        

II. Inflation                                                                   

A.  Inflation Measures Moderate.                                                

One benefit of the economic slowdown is a further moderation in the already   
low inflation figures. All of the                                               
major inflation measures shown above rose at a pace less than two percent dur-  
ing the second quarter, before or after adjusting for the influence of higher   
energy costs. The strong dollar also helped import deflation into the economy   
as import prices fell at a 5.3 percent annualized rate.                         
The inflation readings should stay below 2.5 percent for the next few quar-   
ters due to the current bout of weakness in the economy. Specifically, when-    
ever capacity utilization rates have fallen near the current reading of 77      
percent and the unemployment rate is rising (currently at 4.5 percent, up from  
3.9 percent in October and likely to approach 5.0 percent by yearend), the      
inflation measures tend to moderate for the subsequent twelve months or so.     
Consider that the core producer price index (PPI) is running only 1.6 percent 
ahead of year ago levels, while the core consumer price index (CPI) is 2.7      
percent ahead. While these are both low inflation readings, of more signifi-    
cance is that with the cost of materials (PPI) running below selling prices     
(CPI), the food chain of inflationary                                           

[GRAPH]                           

            Inflation Rates*
            2001

            1Q      2Q

Gross Domestic Purchases                2.7%    1.5%                            
GDP Less Food and Energy                2.3%    1.1%                            
Personal Consumption  Expenditures      3.2%    1.7%                            
PCE Less Food and Energy                2.6%    1.1%                            

*Annualized                                                                     

pressures has a disinflationary influence solidly in place. Additionally, the   
prices paid component of the NAPM has fallen by over 27 percent since earlier   
in the year and is pointing to falling price levels not rising price levels.    
We continue to look for inflation to register in the 1.5 to 2.5 percent range   
for the foreseeable future.                                                     

Joseph T. Keating                                                               
Chief Market Strategist                                                         
Chief Fixed Income Officer                                                      

The information contained herein is based on Commerce Department data released  
July 27, 2001.                                                                  

Fifth Third Asset Management Inc. 
38 Fountain Square Plaza  
Cincinnati, Ohio 45263  
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Portfolio Reviews                                                               

Kent Growth and Income Fund                                           
By Allan J. Meyers                                                    
Portfolio Manager                                                     

The stock market was characterized by extraordinary volatility and posted a   
decline during the 12 month period ended July 31, 2001.                         

A number of factors contributed to the poor market performance during the     
period. The Federal Reserve Board continued to increase interest rates during   
the first six months of the year 2000 to reduce inflation expectations and to   
prevent the economy from overheating. Rising interest rates combined with lower 
consumer confidence and election uncertainty in November and December caused    
economic activity to slow and stock prices to fall. Stocks of communications    
and technology firms were particularly hard hit, declining 20% and 50%, respec- 
tively over the past 12 months. The Federal Reserve has reacted to the slowing  
economy by reducing interest rates six times since January 1, dropping 275      
basis points, from 6.50% to 3.75% as of July 31, 2001.                          

The Fund's Institutional and Investment Shares returned -15.49% and -15.70%   
respectively during the 12 months ended July 31, 2001. The Fund's Benchmark,    
the Standard & Poor's 500 Stock Index returned -14.32% during the same period.  

Managing the Fund                                                               

Holdings in the utility, financial and energy sectors helped the Fund's per-  
formance during the period. The utilities sector performed well as many invest- 
ors turned to utility securities as an equity-based alternative to fixed-income 
holdings. The Fund benefited from investments in securities such as Duke Energy 
Corp. (0.43% of net assets) which rose 28%.*                                    

[GRAPH]                                         

Kent Growth and Income Fund                                                     
Distributions of net assets*                                                    
As of July 31, 2001                                                             

Technology                     18.1%                                            
Capital Goods                   8.8%                                            
Consumer Staples               12.3%                                            
Consumer Cyclicals              9.0%                                            
Other                           7.2%                                            
Communiaction Services          6.2%                                            
Energy                          6.9%                                            
Health                         13.0%                                            
Financials                     18.5%                                            

Financial sector holdings such as Washington Mutual, Inc. (0.44%), which      
gained 92%, also performed well for the Fund. During the period the Fund        
increased its exposure to high quality financial stocks to take advantage of    
the decline in interest rates and the expected improvement in profitability.    
The Fund also modestly reduced its holdings in the healthcare sector.*          

Going Forward                                                                   

Despite the difficult equity environment of the past 12 months, we believe the
Fund is well positioned for the long term. We anticipate that the reduction in  
interest rates and the new tax cuts will spur economic growth, which should     
lead to improved corporate profitability and higher stock prices. The Fund's    
focus will continue to be on the financial, utility, and energy sectors, as we  
believe that these companies have prospects for increased earnings.             
--------------------------------------------------------------------------------

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

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Kent Growth and Income Fund                                                     

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 11/2/92) (Inception: 12/1/92)                      
------------------------------------------------------------------------------- 

                                                                                
One Year               -15.49%              -15.70%                             
 ...............................................................................
Three Years              2.40%                2.16%                             
 ...............................................................................
Five Years              11.94%               11.67%                             
 ...............................................................................
Since Inception         12.89%               12.38%                             

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

Growth of a $10,000 Investment                                                  
                        As compared with the Standard & Poor's 500 Stock Index

[GRAPH] 
Institutional Class Shares                                                      
Kent Growth and Income Fund                   
                   Investment Class Shares     Standard & Poor's 500 Stock Index
11/2/92                   10,000                            10,000              
12/93                   10,398                            10,472            
12/93                   11,610                            11,518            
12/94                   11,669                            11,669            
12/95                   15,743                            16,063            
12/96                   18,809                            19,737            
12/97                   23,351                            26,321            
12/98                   29,907                            33,886            
12/99                   35,526                            41,012            
12/00                   31,528                            37,280            
7/01                   28,856                            34,443           
------------------------------------------------------------------------------- 

[GRAPH] 
Investment Class Shares                                                         
Kent Growth and Income Fund                         
             Investment Class Shares     Standard & Poor's 500 Stock Index
12/1/92               10,000                            10,000                
12/92               10,059                            10,472              
12/93               11,247                            11,518              
12/94               11,302                            11,669              
12/95               15,213                            16,036              
12/96               18,124                            19,737              
12/97               22,454                            26,321              
12/98               28,666                            33,886              
12/99               33,978                            39,676              
12/00               30,081                            36,065              
7/01               27,496                            33,320             

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Growth and Income Fund from 11/2/92 (Institutional Class    
Shares) and 12/1/92 (Investment Class Shares) to 7/31/01, and represents the    
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Index Equity Fund                                                
By Brian J. Smolinski                                                 
Portfolio Manager                                                     

The 12 month period ended July 31, 2001, was characterized by declining inter-
est rates, a slowing economy, and declining earnings. Large company shares fell 
sharply, led by the technology sector. In an effort to boost the economy, the   
Federal Reserve lowered short-term interest rates a total of six times after    
January 1st--rates fell from 6.50% to 3.75%--a total of 275 basis points. The   
S&P 500 Index added and deleted 42 stocks during the period, down from 51 for   
the previous 12-month period.                                                   

The Fund's Institutional and Investment Shares returned -14.57% and -14.79%,  
respectively, during the 12 month period ended July 31, 2001. The S&P 500 Index 
returned -14.32% during the period.                                             

Highlights                                                                      

The strongest performing sectors in the Fund were basic materials, up 21%, and
transportation, up 13%. The Fund's best performing stocks were Manor Care, Inc. 
(0.03% of net assets), up 226%, and Healthsouth Corp. (0.06%), up 188%. The     
worst performing sectors were technology, down 51%, and communications servic-  
es, down 22%. The worst performing stocks in the Fund were JDS Uniphase Corp.   
(0.11%), down 92%, and BroadVision, Inc. (0.01%), down 91%.*                    

****  
4 star Morningstar rating 
(among 4,540 domestic equity
funds overall as of 7/31/01)+ 

[GRAPH]                                         

Kent Index Equity Fund                                                          
Distributions of net assets*                                                    
As of July 31, 2001                                                             

Technology                     18.4%                                            
Communiaction Services          6.1%                                            
Consumer Staples               12.6%                                            
Capital Goods                   9.0%                                            
Other                           7.0%                                            
Energy                          6.6%                                            
Consumer Cyclicals              9.3%                                            
Health                         13.2%                                            
Financials                     17.8%                                            

Outlook                                                                         

In our opinion, the aggressive moves to lower short term interest rates by the
Federal Reserve and the tax refund should help the economy gain traction as     
2001 wears on, and should help to increase corporate profitability and stock    
prices from the depressed levels of the past year.                              
--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                         
+Morningstar proprietary ratings reflect risk-adjusted performance through      
7/31/01. The ratings are subject to change every month. Past performance is no  
guarantee of future results. Morningstar ratings are calculated from a fund's   
three-, five-, and ten-year returns (with fee adjustments) on excess of 90-day  
Treasury bill returns, and a risk factor that reflects fund performance below   
90-day Treasury bill returns. The Fund received 3 stars for the three-year      
period and 4 stars for the five-year period for the Investment and              
Institutional Shares. It was rated among 4,540 and 2,792 domestic equity funds  
for the three- and five-year periods, respectively. Funds with multiple share   
classes have a common portfolio. The overall rating is a weighted average of    
the three-, five- and 10-year rating (where applicable). Ten percent of the     
funds in a rating category receive 5 stars, 22.5% receive 4 stars, 35% receive  
3 stars, 22.5% receive 2 stars and 10% receive 1 star.                          

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Kent Index Equity Fund                                                          

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 11/2/92) (Inception: 11/25/92)                     
------------------------------------------------------------------------------- 

                                                                                
One Year               -14.57%               -14.79%                            
 ...............................................................................
Three Years              3.60%                 3.35%                            
 ...............................................................................
Five Years              14.81%                14.53%                            
 ...............................................................................
Since Inception         14.54%                14.09%                            

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

Growth of a $10,000 Investment                                                  
                        As compared with the Standard & Poor's 500 Stock Index

[GRAPH] 
Institutional Class Shares                                                      
Kent Index Equity Fund                            
          Institutional Class Shares     Standard & Poor's 500 Stock Index
11/2/92                10,000                             10,000                
12/92                10,440                             10,472              
12/93                11,390                             11,518              
12/94                11,488                             11,669              
12/95                15,648                             16,036              
12/96                19,119                             19,737              
12/97                25,342                             26,321              
12/98                32,503                             33,886              
12/99                39,183                             41,012              
12/00                35,541                             37,280              
7/01                32,760                             34,443             

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

[GRAPH] 
Investment Class Shares                                                         
Kent Index Equity Fund                            
           Investment Class Shares     Standard & Poor's 500 Stock Index
11/25/92               10,000                           10,000                  
12/92               10,185                           10,472               
12/93               11,111                           11,518               
12/94               11,194                           11,669               
12/95               15,199                           16,036               
12/96               18,531                           19,737               
12/97               24,505                           26,321               
12/98               31,347                           33,886               
12/99               37,694                           39,676               
12/00               34,105                           36,065               
7/01               31,396                           33,320              

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Index Equity Fund from 11/2/92 (Institutional Class         
Shares) and 11/25/92 (Investment Class Shares) to 7/31/01, and represents the   
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Large Company Growth Fund                                        
By Allan J. Meyers                                                    
Portfolio Manager                                                     

The stock market was characterized by great instability and difficult perfor- 
mance during the 12 month period ended July 31, 2001. High priced technology    
and communications companies were among the worst performers. The Nasdaq Com-   
posite Index/1/ declined 46.19% during the period, as investors remained wary   
of the prospects for growth in the technology sector.                           

Several factors contributed to the stock market's poor showing. During the    
first half of the year 2000 the Federal Reserve Board increase interest rates   
three times in an attempt to prevent the economy from overheating and to quell  
inflationary fears. The restrictive monetary policy combined with rising oil    
prices, reduced consumer confidence and a strong U.S. dollar resulted in a weak 
economy and a much lower level of corporate profitability. Operating earnings   
of companies that comprise the S&P 500 Index fell approximately 25% in the sec- 
ond quarter of 2001 from the prior year's level.                                

The Fund's Institutional and Investment Shares returned -22.90% and -23.03%,  
respectively, during the 12, months ended July 31, 2001. The Fund's benchmark,  
the S&P 500 Index, returned -14.32% for the same period.                        

Positioning the Fund                                                            

The Fund's two major sector overweights consist of healthcare and technology. 
These are the two areas where we anticipate that above average long term earn-  
ings growth will be possible. The Fund demphasized technology in January 2001   
by reducing or eliminating positions in Nortel Networks Corp. (0.18% of net     
assets), Applied Materials (0.34%), and JDS Uniphase and re-deployed the money  
into the healthcare sector and financial services. That shift                   

[GRAPH]                                   

Kent Large Company Growth Fund                                                  
Distribution of net assets*                                                     
As of July 31, 2001                                                             

Communication Services              6.0%                                        
Consuner Staples                   14.3%                                        
Consumer Cyclicals                  8.3%                                        
Capital Goods                       8.7%                                        
Other                               2.3%                                        
Health                             18.2%                                        
Financials                         15.3%                                        
Technology                         21.8%                                        
Energy                              5.1%                                        

helped insulate the Fund from some of the worst losses in the technology sec-   
tor, and took advantage of relatively strong performance in both healthcare and 
financial service stocks. Healthcare and financials mitigated some of the       
losses experienced by technology stocks.*                                       

Looking ahead                                                                   

We anticipate that the economy will pick up steam in the coming year, as      
interest rate reductions and tax cuts begin to take effect. As the economy      
begins to improve the Fund will consider the purchase of additional high qual-  
ity technology companies.                                                       

In the coming months we will be looking at semiconductors stocks first, as    
they are core technologies. We will also consider hardware manufacturers and    
software manufacturers such as Adobe Systems, Inc. (0.18%), Oracle Corp.        
(1.27%), and Microsoft Corp. (4.64%).*                                          
--------------------------------------------------------------------------------

/1/The Nasdaq Composite Index is a market capitalization price only index that  
tracks the performance of domestic common stocks traded on the regular Nasdaq   
market, as well as the National Market System traded foreign common stocks and  
American Depositary Receipts.                                                   

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

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Kent Large Company Growth Fund                                                  

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                  Institutional Class    Investment Class                       
                 (Inception: 10/19/99) (Inception: 10/19/99)                    
------------------------------------------------------------------------------- 

                                                                                
One Year                -22.90%               -23.03%                           
 ...............................................................................
Since Inception          -5.89%                -6.10%                           

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

Growth of a $10,000 Investment                                                  
                        As compared with the Standard & Poor's 500 Stock Index

[GRAPH] 
Institutional Class Shares                                                      
Kent Large Company Growth Fund                        
              Institutional Class Shares     Standard & Poor's 500 Stock Index
10/19/99                10,000                             10,000               
10/99                10,850                             10,622            
11/99                11,196                             10,839            
12/99                11,891                             11,475            
1/00                11,342                             10,899           
2/00                11,203                             10,693           
3/00                12,221                             11,739           
4/00                11,771                             11,385           
5/00                11,422                             11,152           
6/00                11,937                             11,427           
7/00                11,638                             11,249           
8/00                12,284                             11,948           
9/00                11,462                             11,317           
10/00                11,345                             11,269            
11/00                10,282                             10,381            
12/00                10,078                             10,432            
7/01                 8,973                              9,638           
------------------------------------------------------------------------------- 

[GRAPH] 
Investment Class Shares                                                         
Kent Large Company Growth Fund                        
               Investment Class Shares       Standard & Poor's 500 Stock Index
10/19/99                10,000                              10,000              
10/99                10,840                              10,621           
11/99                11,184                              10,839           
12/99                11,887                              11,475           
1/00                11,326                              10,899          
2/00                11,196                              10,693          
3/00                12,201                              11,739          
4/00                11,760                              11,385          
5/00                11,399                              11,152          
6/00                11,921                              11,427          
7/00                11,610                              11,249          
8/00                12,262                              11,948          
9/00                11,439                              11,317          
10/00                11,309                              11,269           
11/00                10,257                              10,381           
12/00                10,041                              10,432           
7/01                 8,936                               9,638          

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Large Company Growth Fund from 10/19/99 to 7/31/01, and     
represents the reinvestment of dividends and capital gains in the Fund.         

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Small Company Growth Fund+                                       
By Robert Cummisford, CFA                                             
Portfolio Manager                                                     

The economy stagnated during the 12 month period through July 31, 2001. That  
weakness caused stocks to perform poorly during the period, as concern about    
the slowing economy and poor corporate fundamentals led investors to sell       
stocks in favor of less volatile instruments. Small-cap stocks fared relatively 
well compared to large caps, however, because investors recognized that small-  
company shares carried more attractive valuations than shares of large firms.   
The Russell 2000 Index of small-company stocks outperformed the large-cap Stan- 
dard & Poor's 500 Stock Index/1/ by 13 percentage points during the period.     
Value dramatically outperformed growth, as investors sold shares of technology  
and telecommunications firms: The Russell 2000 Value Index/2/ gained 23.75%,    
while the Russell 2000 Growth Index/3/ lost 23.31%. The best-performing sectors 
were financial services, energy, and utilities, while the worst performing sec- 
tors were technology and telecommunications.                                    

The Fund's Institutional and Investment Shares returned -8.20% and -8.36%,    
respectively for the 12 months ended July 31, 2001. The Fund's benchmark the    
Russell 2000 Index returned -1.71% for the same period.                         

A focus on earnings                                                             

The Fund's growth-oriented approach hurt performance during the period. That  
said, the Fund's returns significantly outpaced the returns of the Russell 2000 
Growth Index, due primarily to our strategy of focusing on shares of firms with 
strong earnings and revenue growth. That high-quality strategy helped us avoid  
the stocks that were hit hardest by the downturn in technology and telecommuni- 
cations.                                                                        

We continued to emphasize three themes that we believe will drive the stock   
market during the next several years: healthcare, financial services and tech-  
nology. Firms in those sectors stand to benefit from aging baby boomers and the 
requirement for companies to become more productive and efficient, which offer  
tremendous long-term growth potential. We believe our focus on firms with       
strong profits and sales helps us find stocks with the capacity to ride out     
difficult                                                                       

[GRAPH]                                   

Kent Small Company Growth Fund                                                  
Distribution of net assets*                                                     
As of July 31, 2001                                                             

Consuner Staples                    5.4%                                        
Consumer Cyclicals                 13.8%                                        
Other                               7.2%                                        
Capital Goods                      11.0%                                        
Healthcare                         16.9%                                        
Energy                              5.4%                                        
Financials                         17.8%                                        
Technology                         22.5%                                        

periods, while offering strong appreciation potential during market advances.   

We saw impressive advances in some stocks, despite the general market decline.
Home-builder Ryland Group, Inc. (0.25% of net assets) up 213%; auto-finance     
company AmeriCredit Corp. (1.03%) up 196%; and tissue-preservation firm         
Cryolife, Inc. (0.36%) up 178% all helped boost the Fund's performance.*        

A stabilizing economy                                                           

We are beginning to see some signs of stability in the economy. The Federal   
Reserve now has reduced short-term interest rates six times, for a total cut of 
275 basis points, and many Americans are receiving tax refunds. We believe that 
stimulus should help boost the economy going forward.                           

That foundation provides a solid base for small-company stocks. We believe    
small caps still offer attractive valuations and strong growth prospects com-   
pared to large-cap shares. We continue to be optimistic that the healthcare,    
technology and financial services sectors will drive the market in future       
years, while our strategy of focusing on high-quality companies should help     
mitigate volatility for shareholders.                                           
--------------------------------------------------------------------------------
+Small-capitalization funds typically carry additional risks, since smaller     
companies generally have a higher risk of failure and, by definition, are not   
as well established as "blue-chip" companies. Historically, smaller companies'  
stock has experienced a greater degree of market volatility than average.       
/1/The Standard & Poor's 500 Stock Index is an unmanaged index that generally   
represents the performance of the U.S. stock market as a whole.                 
/2/The Russell 2000 Value Index is generally representative of domestically     
traded common stocks of small to mid-sized companies with less-than-average     
growth orientation. Companies in this index generally have low price-to-book    
and price-to-earnings ratios.                                                   
/3/The Russell 2000 Growth Index is generally representative of domestically    
traded common stocks of small to mid-sized companies with greater-than-average  
growth orientation. Companies in this index generally have higher price-to-book 
and price-to-earnings ratios.                                                   
Investors cannot invest directly in an index, although they can invest in the   
underlying securities.                                                          
*The Fund's portfolio composition is subject to change.                         

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Kent Small Company Growth Fund                                                  

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 11/2/92) (Inception: 12/4/92)                      
------------------------------------------------------------------------------- 

                                                                                
One Year                -8.20%               -8.36%                             
 ...............................................................................
Three Years              5.48%                5.25%                             
 ...............................................................................
Five Years              10.42%               10.18%                             
 ...............................................................................
Since Inception         12.09%               11.17%                             

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

Growth of a $10,000 Investment                                                  
                                       As compared with the Russell 2000 Index

 [GRAPH]
Institutional Class Shares                                                      
Kent Small Company Fund                   
         Institutional Class Shares         Russell 2000 Index
11/2/92                    10,000                          10,000               
12/92                    10,885                          11,140             
12/93                    12,727                          13,246             
12/94                    12,720                          13,005             
12/95                    15,742                          16,704             
12/96                    18,805                          19,466             
12/97                    24,059                          23,819             
12/98                    22,579                          23,212             
12/99                    28,895                          28,147             
12/00                    28,785                          27,300             
7/01                    27,130                          25,625            

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

 [GRAPH]
Investment Class Shares                                                         
Kent Small Company Fund                   
        Investment Class Shares         Russell 2000 Index
12/4/92                    10,000                        10,000                 
12/92                    10,197                        10,348               
12/93                    11,914                        12,304               
12/94                    11,905                        12,080               
12/95                    14,700                        15,516               
12/96                    17,500                        18,081               
12/97                    22,349                        22,124               
12/98                    20,919                        21,560               
12/99                    26,719                        26,144               
12/00                    26,561                        25,354               
7/01                    25,008                        27,592              

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Small Company Growth Fund from 11/2/92 (Institutional       
Class Shares) and 12/4/92 (Investment Class Shares) to 7/31/01, and represents  
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent International Growth Fund+                                       
By David C. Eder                                                      
Portfolio Manager                                                     

For the 12 month period ended July 31, 2001, the Kent International Growth    
Fund underperformed its benchmark, the Morgan Stanley Capital International     
(MSCI) Europe, Australasia, and Far East (EAFE) Index. The Fund's Institutional 
and Investment Shares returned -24.47% and -24.76%, respectively, and the       
Fund's benchmark the MSCI EAFE(R) Index produced a -21.88% return.              

Highlights                                                                      

The Fund seeks to equal or exceed the performance of the MSCI EAFE Index and  
weights its portfolio by Gross Domestic Product/1/ data gathered from the       
International Monetary Fund/2/, tilting its portfolio toward the largest econo- 
mies rather than the largest stock markets. The Fund's top five countries at    
the end of the period were Japan (21.2% of net assets), Germany (14.0%), United 
Kingdom (13.2%), France (13.2%) and Italy (8.1%).*                              

Global market conditions during the period left investors no place to hide. A 
massive sell-off of technology shares and weaker earnings reports in the U.S.   
contributed to slumping global markets. The MSCI Pacific Rim Index lost 24.99%  
and the MSCI Europe Index lost 20.52%. Individual markets fared just as poorly: 
The United Kingdom lost 13.2%, Germany fell 22.4%, France fell 25.5%, Japan     
fell 27.2% and Italy fell 20.6%.                                                

The Fund's strategy of focusing upon large company stocks hurt performance, as
small company stocks outperformed. The Fund's focus upon the technology and     
telecommunications sectors also adversely affected performance.                 

Energy stocks such as BP Amoco PLC (1.97% of net assets) gained 2.6% and Royal
Dutch Petroleum (1.20% of net assets) up 6.6% performed relatively well, but    
still only provided scant gains. Of the 22 countries represented in the Fund    
only two made gains: Ireland (gained 13.6%) and Austria (1.3%). These two coun- 
tries, however, comprised less than one percent of the Fund's total portfolio,  
and therefore did not greatly affect Fund performance.*                         

[GRAPH]                                             

Kent International Growth Fund                                                  
Distribution of net assets*                                                     
As of July 31, 2001                                                             

France               13.6%                                                      
Germany              14.6%                                                      
Other                19.6%                                                      
Japan                22.0%                                                      
United Kingdom       13.6%                                                      
Italy                 8.1%                                                      
Australia             4.4%                                                      
Spain                 4.1%                                                      

Outlook                                                                         

Despite the European Central Bank's reluctance to drop interest rates, mone-  
tary authorities in the United Kingdom and the United States have been aggres-  
sively lowering rates in an effort to boost their economies. We believe there   
is evidence that the U.S. economy will begin to recover, leading to a global    
recovery. We anticipate the U.S. economy will begin to improve during the third 
or fourth quarter and the foreign economies should follow along.                

In addition, Morgan Stanley is reconfiguring the MSCI EAFE(R) Index, which    
will add more names to the Index, increase sector diversification, and give a   
truer reflection of the firms that make up the benchmark. We will add as many   
as 50 stocks to our portfolio to prepare for that shift in the Index which      
could boost demand for those shares and drive their prices higher.              

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

+International investing involves increased risk and volatility.                
*The Fund's portfolio composition is subject to change.                         
/1/The Gross Domestic Product (GDP) is the market value of the goods and        
services produced by labor and property in the United States. The GDP is made   
up of consumer and government purchases, private domestic investments and net   
exports of goods and services.                                                  
/2/The International Monetary Fund is a multilateral organization of about 180  
member countries providing financial assistance to debtor countries who agree   
to take designated steps to improve their economies.                            

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Kent International Growth Fund                                                  

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 12/4/92) (Inception: 12/4/92)                      
------------------------------------------------------------------------------- 

                                                                                
One Year               -24.47%              -24.76%                             
 ...............................................................................
Three Years             -3.65%               -3.95%                             
 ...............................................................................
Five Years               1.93%                1.62%                             
 ...............................................................................
Since Inception          6.67%                6.37%                             

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

Growth of a $10,000 Investment                                                  
              As compared with the Morgan Stanley Capital International MSCI
                EAFE(R) (Europe, Australasia and Far East) Index, the Morgan
                       Stanley Capital International (MSCI) Europe Index and
           the Morgan Stanley Capital International (MSCI) Pacific Rim Index

 [GRAPH]
Institutional Class Shares                                                      
Kent                                          
International     MSCI EAFE(R)                        
Growth Fund      (Europe,                           
        Institutional   Australia and       MSCI Europe   MSCI Pacific
        Class Shares   Far East) Index        Index        Rim Index
12/4/92          10,000          10,000             10,000         10,000       
12/92          10,020          10,054             10,233          9,887     
12/93          13,045          13,367             13,282         13,444     
12/94          13,974          14,444             13,626         15,195     
12/95          15,591          16,113             16,653         15,650     
12/96          16,507          17,138             20,246         14,335     
12/97          16,926          17,443             25,063         10,681     
12/98          19,976          20,989             32,213         10,942     
12/99          25,630          26,648             37,332         17,248     
12/00          21,166          22,872             34,200         12,802     
7/01          17,486          19,134             28,608         11,001    

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

 [GRAPH]
Investment Class Shares                                                         

Kent                                                
International          MSCI                               
Growth Fund       EAFE(R) (Europe,                        
       Investment        Australia and         MSCI       MSCI Pacific
    Class Shares      Far East) Index    Europe Index    Rim Index

12/4/92       10,000             10,000             10,000        10,000        
12/92       10,010             10,054             10,233         9,887      
12/93       13,006             13,367             13,282        13,444      
12/94       13,723             14,444             13,626        15,195      
12/95       15,487             16,113             16,653        15,650      
12/96       16,350             17,138             20,246        14,335      
12/97       16,719             17,443             25,063        10,681      
12/98       19,661             20,989             32,213        10,942      
12/99       25,156             26,648             37,332        17,248      
12/00       20,726             22,872             34,200        12,802      
7/01       17,070             19,134             28,608        11,001     

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent International Growth Fund from 12/4/92 to 7/31/01, and      
represents reinvestment of dividends and capital gains in the Fund.             

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

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Income Fund                                                      
By Mitchell L. Stapley, CFA                                           
Portfolio Manager                                                     

Yields on long-term bonds rose during the 12 month period ended July 31, 2001.
Longer-term issues underperformed short-term issues. The Federal Reserve        
adopted an aggressive easing of monetary policy to stimulate the slowing econo- 
my, cutting essential short-term interest rates six times during the period.    
That action helped push down the yield on three-month Treasury bills by 237     
basis points. Meanwhile, however, the yield on 30-year Treasury securities rose 
24 basis points on fear that falling short-term rates would lead to a rebound   
in the economy and a pickup in credit demands.                                  

The Fund's Institutional and Investment Shares returned 13.54% and 13.16%,    
respectively, for the 12 months ended July 31, 2001. Compared to a 13.29%       
return for the Fund's benchmark, the Lehman Brothers Long Government/Credit     
Bond Index.                                                                     

Corporate outperformance                                                        

The Fund's average maturity stood at 10.1 years at the beginning of the period
versus 8.5 years for its benchmark. We reduced the average maturity to 8.1      
years as of July 31, 2001 compared to 8.5 years for its benchmark. That decline 
benefited the Fund, as shorter-term bonds outperformed due to the Federal       
Reserve's easing of monetary policy.*                                           

We maintained an overweight in corporate issues, as well as agency securities 
and mortgage-backed issues. This overweight benefited Fund performance as       
investors looking ahead to a stronger economy began shifting assets out of      
Treasury securities and into these issuing sectors. As always, the Fund main-   
tained a portfolio of high-quality securities in order to help lessen share-    
holder risk.                                                                    

Looking forward                                                                 

We believe investors should begin to see increased growth in the economy as   
the Federal Reserve's recent interest rate cuts take hold. That said, we feel   
inflation should remain low during the coming months, helping to stabilize      
long-term bond yields.                                                          

[GRAPH]                             

Kent Income Fund                                                                
Distribution of net assets*                                                     
As of July 31, 2001                                                             

U.S. Government & Agency Issues           41.9%                                 
Cash Equivalents Net                                                            
Other Assets & Liabilities                6.3%                                
Corporate Notes & Bonds                   51.8%                                 

Kent Income Fund                                                                
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 5.13%
Investment Class.......................... 4.88%

SEC 30-day yield is computed based on net income during the 30-day period ended 
July 31, 2001. Yield calculations represent past performance and will           
fluctuate.                                                                      

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

We will attempt to focus on corporate bonds with high credit ratings. That    
approach should help the Fund lock in the higher yields available on corporate  
issues while avoiding the inherent risk of lower-quality issues.                
--------------------------------------------------------------------------------

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

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Kent Income Fund                                                                

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 3/20/95) (Inception: 3/22/95)                      
------------------------------------------------------------------------------- 

                                                                                
One Year                13.54%               13.16%                             
 ...............................................................................
Three Years              6.05%                5.75%                             
 ...............................................................................
Five Years               7.66%                7.44%                             
 ...............................................................................
Since Inception          7.64%                7.36%                             

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

Growth of a $10,000 Investment                                                  
     As compared with the Lehman Brothers Government/Credit Bond Index and the
                             Lehman Brothers Long Government/Credit Bond Index

[GRAPH] 

          Kent Income Fund        Lehman Brothers        Lehman Brothers
           Institutional      Long Government/Credit   Government/Credit
        Class Shares             Bond Index             Bond Index
3/20/95            10,000                  10,000                10,000         
12/95            11,506                  12,190                11,358       
12/96            11,643                  12,207                11,688       
12/97            12,828                  13,979                12,871       
12/98            14,063                  15,624                14,043       
12/99            13,443                  14,429                14,098       
12/00            15,044                  16,761                15,769       
7/01            15,977                  17,724                16,729      

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

[GRAPH] 

          Kent Income Fund        Lehman Brothers        Lehman Brothers
             Investment         Long Government/Credit   Government/Credit
        Class Shares             Bond Index             Bond Index
3/22/95           10,000                  10,000                 10,000         
12/95           11,464                  12,190                 11,358       
12/96           11,597                  12,207                 11,688       
12/97           12,779                  13,979                 12,871       
12/98           13,933                  15,624                 14,043       
12/99           13,270                  14,429                 14,098       
12/00           14,816                  16,761                 15,769       
7/01           15,713                  17,724                 16,729      

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Income Fund from 3/20/95 (Institutional Class Shares) and   
3/22/95 (Investment Class Shares) to 7/31/01, and represents the reinvestment   
of dividends and capital gains in the fund.                                     

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Intermediate Bond Fund                                           
By Mitchell L. Stapley, CFA                                           
Portfolio Manager                                                     

Yields on intermediate-term Treasury securities fell sharply during the 12    
months ended July 31, 2001. The Federal Reserve cut short-term interest rates   
six times in an effort to rekindle economic growth. The Federal Reserve aggres- 
sive monetary policy led to strong relative performance by corporate bonds in   
the latter half of the period as investors decided that falling interest rates  
would help the economy recover.                                                 

The Kent Intermediate Bond Fund's Institutional and Investment Shares returned
12.16% and 11.96%, respectively, for the 12 months ended July 31, 2001. That    
return compared to a 12.49% return for the Fund's benchmark the Lehman Brothers 
Intermediate Government/Credit Bond Index for the same period.                  

Corporate outperformance                                                        

The Fund began the period with an average maturity of 6.2 years, 1.2 years    
longer than its benchmark's average maturity. The longer average maturity       
helped us to lock in higher yields on longer-term issues in the falling rate    
environment. Investors concerned about economic weakness favored Treasury       
issues over corporate, agency, or mortgage-backed issues during the first half  
of the period. That created good buying opportunities in those neglected sec-   
tors. We maintained the Fund's AA2 (as rated by Standard & Poor's) credit rat-  
ing during the period to help protect shareholders' capital. We reduced the     
Fund's average maturity to five years by the end of the period.*                

The portfolio's overweight relative to the benchmark in corporate, agency, and
mortgage-backed issues benefited the Fund following the Federal Reserve inter-  
est-rate cuts which began in January. Investors believed that lower rates would 
help the economy, and shifted assets from Treasury securities into more econom- 
ically sensitive sectors of the bond markets, such as corporate bonds.          

Going Forward                                                                   

We believe that the yield curve will flatten as the Federal Reserve adopts a  
more neutral monetary policy, causing yields on short-term bonds to rise more   
than yields on bonds with five- and 10-year maturities. Thus, we will maintain  
an average maturity close to that of the Fund's benchmark. Meanwhile, the       
Federal Reserve aggressive easing policy during the early part of the year      
should help the economy rebound. We expect that environment to favor our        
corporate holdings, which could provide attrac-tive levels of income to         
shareholders.                                                                   

****  

4 star Morningstar rating 
(among 1,827 fixed income 
funds overall as of (7/31/01)+  
(Institutional Shares)  

[GRAPH]                                   

Kent Intermediate bond fund                                                     
Distribution of net assets*                                                     
As of july 31, 2001                                                             

U.S. Government & Agency Issues           46.8%                                 
Cash Equivalents Net Other Assets                                               
& Liabilities                              6.6%                                 
Corporate Notes & Bonds                   46.6%                                 

Kent Intermediate Bond Fund                                                     
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 4.87%
Investment Class.......................... 4.62%

SEC 30-day yield is computed based on net income during the 30- day period      
ended July 31, 2001. Yield calculations represent past performance and will     
fluctuate.                                                                      

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

--------------------------------------------------------------------------------
*The Fund's portfolio composition is subject to change.                         
+Morningstar proprietary ratings reflect historical risk-adjusted performance   
as of 7/31/01. The ratings are subject to change every month. Past performance  
is no guarantee of future results. Morningstar ratings are calculated from a    
fund's three-, five-, and ten-year returns (with fee adjustments) in excess of  
90-day Treasury bill returns, and a risk factor that reflects fund performance  
below 90-day Treasury bill returns. The Fund received 4 stars for the three-    
year period for the Institutional and Investment Shares and 4 and 3 stars for   
the five-year period for the Institutional and Investment Shares, respectively. 
It was rated among 1,827 and 1,341 fixed income funds for the three- and five-  
year periods for the Investment and Institutional Class, respectively. The      
overall rating is a weighted average of the three- and five-year rating. Ten    
percent of the funds in a rating category receive 5 stars, 22.5% receive 4      
stars, 35% receive 3 stars, 22.5% receive 2 stars and 10% receive 1 star.       

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Kent Intermediate Bond Fund                                                     

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 11/2/92) (Inception: 11/25/92)                     
------------------------------------------------------------------------------- 

                                                                                
One Year                12.16%               11.96%                             
 ...............................................................................
Three Years              6.08%                5.84%                             
 ...............................................................................
Five Years               6.80%                6.54%                             
 ...............................................................................
Since Inception          6.20%                5.96%                             

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

Growth of a $10,000 Investment                                                  
As compared with the Lehman Brothers Intermediate Government/Credit Bond Index

[GRAPH] 
Institutional Class Shares                                                      
              Kent Intermediate Bond Fund       Lehman Brothers Intermediate
               Instiutional Class Shares        Government/Credit Bond Index
11/2/92                   10,000                             10,000             
12/92                   10,125                             10,095           
12/93                   10,934                             10,976           
12/94                   10,585                             10,762           
12/95                   12,298                             12,410           
12/96                   12,667                             12,913           
12/97                   13,655                             13,929           
12/98                   14,699                             15,105           
12/99                   14,519                             15,164           
12/00                   15,933                             16,699           
7/01                   16,914                             17,741          

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

[GRAPH] 
Investment Class Shares                                                         
              Kent Intermediate Bond Fund       Lehman Brothers Intermediate
                Investment Class Shares         Government/Credit Bond Index
11/25/92                  10,000                             10,000             
12/92                  10,050                             10,134          
12/93                  10,873                             11,018          
12/94                  10,545                             10,803          
12/95                  12,207                             12,457          
12/96                  12,544                             12,962          
12/97                  13,500                             13,982          
12/98                  14,448                             15,162          
12/99                  14,252                             15,221          
12/00                  15,597                             16,761          
7/01                  16,529                             17,807         

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

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

The chart represents historical performance of a hypothetical investment of a   
$10,000 in the Kent Intermediate Bond Fund from 11/2/92 (Institutional Class    
Shares) and 11/25/92 (Investment Class Shares) to 7/31/01, and represents the   
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Short Term Bond Fund                                             
By Mitchell L. Stapley, CFA                                           
Portfolio Manager                                                     

The 12 month period ended July 31, 2001 was marked by considerable volatility 
in the financial markets as the economy slowed and investors rushed to move     
their investments into fixed income securities.                                 

The Federal Reserve's interest rate hikes during the first half of 2000 slowed
the economy considerably during the second half of the calendar year. Investors 
feared that the economic slowdown would make it harder for companies to pay     
their debts, and therefore invested heavily in Treasury issues while avoiding   
corporate bonds. Therefore, yields on Treasury securities fell further than     
corporate yields during the first half of the period.                           

The Federal Reserve reduced short-term interest rates six times during the    
latter half of the period for a total reduction of 275 basis points in an       
effort to jump-start economic growth. Those rate cuts caused short-term yields  
to fall more than long-term yields. They also helped revive the corporate sec-  
tor, as investors were encouraged that the Federal Reserve was taking the steps 
necessary to revitalize the economy.                                            

The Fund's Institutional and Investment Shares returned 10.04% and 9.88%,     
respectively, versus 9.84% for the Fund's benchmark, the Lehman Brothers 1-3-   
Year Government Bond Index.                                                     

Taking advantage of spreads                                                     

The Fund began the period with an average maturity of 2.3 years compared to   
1.9 years for its benchmark. The Fund benefited from its longer average matu-   
rity as interest rates fell and bond prices rose. We reduced the Fund's average 
maturity to 2 years by the end of the period because we anticipated yields      
would not fall much further.                                                    

We emphasized high-quality corporate issues during the period. Prices for     
high-quality corporate paper declined early in the period, when investors con-  
cerned with corporate creditworthiness sought shelter in agency and Treasury    
issues. Spreads between Treasury and corporate yields during the period were at 
their widest levels since the last recession, roughly a decade ago. We found    
many corporate bonds with strong credit profiles and large yield advantages     
over Treasury securities, which made attractive additions to the Fund. The      
Fund's credit quality began and ended the period at AA2.                        

****  

4 star Morningstar rating   
(among 1,827 fixed income   
funds overall as of 7/31/01)+   

[GRAPH] 

Kent Short-Term Bond Fund                                                       
Distribution of net assets*                                                     
As of July 31, 2001                                                             

U.S. Government & Agency Issues                    28.5%                        
Cash Equivalents Net Other Assets & Liabilities     6.3%                        
Corporate Notes & Bonds                            65.2%                        

Kent Short Term Bond Fund                                                       
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 4.51%
Investment Class.......................... 4.36%

SEC 30-day yield is computed based on net income during the 30-day period ended 
July 31, 2001. Yield calculations represent past performance and will           
fluctuate.                                                                      

Certain fees were waived, had these waivers not been in effect, the 30-day SEC  
yields would have been lower.                                                   

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

Looking ahead                                                                   

The Federal Reserve has been very aggressive in reducing interest rates. Going
forward, we expect the economy to rebound, which should continue to help the    
performance of our corporate holdings. We do not expect higher inflation in the 
near future, as there is corporate production capacity available to meet        
increased demand for goods and services. We feel interest rates could drift up  
modestly by year-end, reflecting increased demands for capital. In anticipation 
of a rising rate environment, we have shortened the Fund's average maturities   
to be close to the average maturity for its benchmark. That said, we do not     
expect the economic recovery to be powerful enough to raise interest rates      
sharply.                                                                        
--------------------------------------------------------------------------------

*The Fund's portfolio composition is subject to change.                         
+Morningstar proprietary ratings reflect risk-adjusted performance through      
7/31/01. The ratings are subject to change every month. Past performance is no  
guarantee of future results. Morningstar ratings are calculated from a fund's   
three-, five- and ten-year returns (with fee adjustments) on excess of 90-day   
Treasury bill returns, and a risk factor that reflects fund performance below   
90-day Treasury bill returns. The Fund received 5 stars for the three-year      
period and 4 stars for the five-year period for the Investment and              
Institutional Shares. Funds with multiple share classes have a common           
portfolio. It was rated among 1,827 and 1,341 fixed income funds for the three- 
and five-year periods, respectively. The overall rating is a weighted average   
of the three-, five- and 10-year rating (where applicable). Ten percent of the  
funds in a rating category receive 5 stars, 22.5% receive 4 stars, 35% receive  
3 stars, 22.5% receive 2 stars and 10% receive 1 star.                          

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Kent Short Term Bond Fund                                                       

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 11/2/92) (Inception: 12/4/92)                      
------------------------------------------------------------------------------- 

                                                                                
One Year                10.04%               9.88%                              
 ...............................................................................
Three Years              6.25%               6.14%                              
 ...............................................................................
Five Years               6.32%               6.17%                              
 ...............................................................................
Since Inception          5.48%               5.34%                              

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

Growth of a $10,000 Investment                                                  
      As compared with the Lehman Brothers 1-3-Year Government Bond Index, the
                             Consumer Price Index and the 91-Day Treasury Bill

[GRAPH] 
Institutional Class Shares                                                      

Kent Short     Lehman Brothers                        
Term Bond         1-3-Year                            
Fund Institutional   Government      Consumer        91-Day   
   Class Shares      Bond Index     Price Index  Treasury Bill
11/2/92        10,000           10,000          10,000        10,000            
12/92        10,087           10,078          10,007        10,053          
12/93        10,395           10,621          10,282        10,356          
12/94        10,502           10,675          10,557        10,798          
12/95        11,608           11,832          10,825        11,393          
12/96        12,098           12,430          11,185        11,965          
12/97        12,875           13,626          11,375        12,593          
12/98        13,663           14,517          11,559        13,160          
12/99        14,005           14,947          11,869        13,784          
12/00        15,143           16,168          12,271        14,610          
7/01        15,943           17,018          12,518        14,999         

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

[GRAPH] 
Investment Class Shares                                                         
Kent Short     Lehman Brothers                  
Term Bond Fund      1-3 Year                        
         Investment       Government        Consumer        91-Day
            Class Shares      Bond Index       Price Index   Treasury Bill
11/2/92           10,000           10,000           10,000         10,000       
12/92           10,030           10,078           10,007         10,053     
12/93           10,335           10,621           10,282         10,356     
12/94           10,439           10,675           10,557         10,798     
12/95           11,514           11,832           10,825         11,393     
12/96           11,982           12,430           11,185         11,965     
12/97           12,732           13,626           11,375         12,593     
12/98           13,495           14,517           11,559         13,160     
12/99           13,812           14,970           11,869         13,749     
12/00           14,912           16,193           12,271         14,573     
7/01           15,688           17,045           12,518         14,961    

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

The Fund's performance is measured against the Lehman Brothers 1-3-Year         
Government Bond Index, which is an unmanaged index comprised of U.S. Treasury   
issues and publicly issued debt of U.S. Government agencies with maturities of  
one to three years. The 91-Day Treasury bill return tracks the investment       
returns paid on U.S. Treasury bills maturing in 91 days. The Consumer Price     
Index is an unmanaged index measuring the price increases in a standardized     
"market basket" of consumer products. The indices do not reflect the deduction  
of fees associated with a mutual fund, such as investment management and fund   
accounting fees. The performance of the Fund does reflect the deduction of      
fees for these value-added services. Investors cannot invest directly in an     
index, although they can invest in the underlying securities.                   

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Short Term Bond Fund from 11/2/92 (Institutional Class      
Shares) and 12/4/92 (Investment Class Shares) to 7/31/01, and represents the    
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total return would have been lower.             

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Portfolio Reviews                                                               

The Kent Tax-Free Income Fund+                                        
By Michael Martin, CFA                                                
Portfolio Manager                                                     

Municipal bond yields fell during the 12 month period ended July 31, 2001. For
example, the yield on a 30-year AAA-rated general obligation municipal security 
stood at 5.06% as of July 31, 2001, down 54 basis points from the beginning of  
the period.                                                                     

Evidence of a significant economic slowdown during the period raised fears    
that the economy would slip into a recession, and prompted the Federal Reserve  
to cut short-term interest rates six times during the period in an effort to    
boost economic growth. Investors early in the period anticipated a rate cut by  
the Federal Reserve, and the yield on a 30-year AAA-rated general obligation    
municipal bond fell from 5.60% on August 1, 2000 to 5.16% by December 30, 2000. 
The Federal Reserve began cutting short-term interest rates in January 2001,    
and eventually cut rates by a total of 2.75 percentage points during the peri-  
od.                                                                             

Municipal bond yields rose temporarily in April as individual investors liqui-
dated municipal holdings to pay their tax bills. However, yields again fell     
after tax season ended and, as further economic weakness caused the Federal     
Reserve to continue cutting interest rates. Furthermore, coupon payments and    
maturity dates are particularly heavy during June and July. That benefited      
municipal bonds as holders of municipal bonds reinvested their cash back into   
the municipal market.                                                           

The supply of municipal bonds was relatively high during the first six-months 
of 2001. Municipal bond issuance for the first half of 2001 totaled $154 bil-   
lion, 38% higher than the same period of 2000. However strong retail demand     
more than offset the supply. Investors seeking capital preservation shifted     
money into the municipal market as the economy weakened and the stock market    
posted significant losses.                                                      

The Fund's Institutional and Investment Shares returned 9.89% and 9.69%,      
respectively, for the 12 months ended July 31, 2001. Those compared to a 10.08% 
return for the Fund's benchmark the Lehman Brothers Municipal Bond Index.       

Managing the Fund                                                               

The average maturity of the Fund's portfolio began the period at 15.66 years. 
We reduced the Fund's average maturity throughout the period as the municipal   
market rallied and became more expensive, in keeping with our policy of selling 
into strength. The Fund's average maturity as of July 31, 2001 was 13.20 years.*

[GRAPH]                                                   

Kent Tax-Free Income Fund                                                       
Distribution of Net Assets*                                                     
As of July 31, 2001                                                             

South                 17.7%                                                     
North Central         38.1%                                                     
East                  15.1%                                                     
Other                  3.7%                                                     
Mountain              14.2%                                                     
Pacific               11.2%                                                     
Kent Tax-Free Income Fund                                                       
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 3.65%
Investment Class.......................... 3.40%

SEC 30-day yield is computed based on net income during the 30-day period ended 
July 31, 2001. Yield calculations represent past performance and will           
fluctuate.                                                                      

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

We maintained the Fund's high-quality portfolio. The average credit rating of 
the Fund's portfolio ended the period at AAA. The additional yield available on 
lower-rated issues was not enough to justify the extra risk on such securi-     
ties.*                                                                          

Looking ahead                                                                   

The question moving into the second half of 2001 is how much the Federal      
Reserve will need to cut interest rates to stimulate the economy. We feel that  
the worst of the economic slowdown is behind us, and that the Federal Reserve   
is nearing the end of the easing cycle. There is some concern that yields could 
rise by the end of the year, although for the time being the market will likely 
remain in a limited trading range. In that environment, we attempt to take      
advantage of any spike in yields to purchase high-quality municipal securities  
at attractive yields.                                                           
--------------------------------------------------------------------------------

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

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Kent Tax-Free Income Fund                                                       

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class    Investment Class                        
                 (Inception: 3/20/95) (Inception: 3/31/95)                      
------------------------------------------------------------------------------- 

                                                                                
One Year                9.89%                9.69%                              
 ...............................................................................
Three Years             5.19%                4.94%                              
 ...............................................................................
Five Years              6.07%                5.79%                              
 ...............................................................................
Since Inception         6.12%                5.87%                              

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

Growth of a $10,000 Investment                                                  
                     As compared with the Lehman Brothers Municipal Bond Index

[GRAPH] 
Institutional Class Shares                                                      
Kent Tax-Free Income Fund                             
           Institutional Class Shares    Lehman Brothers Municipal Bond Fund
3/20/95               10,000                             10,000                 
12/95               10,860                             10,971               
12/96               11,290                             11,457               
12/97               12,261                             12,511               
12/98               12,957                             13,242               
12/99               12,534                             12,969               
12/00               14,088                             14,484               
7/01               14,603                             15,122              

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

[GRAPH] 
Investment Class Shares                                                         
Kent Tax-Free Income Fund                             
          Investment Class Shares    Lehman Brothers Municipal Bond Fund
3/31/95               10,000                             10,000                 
12/95               10,834                             10,971               
12/96               11,217                             11,457               
12/97               12,150                             12,511               
12/98               12,809                             13,242               
12/99               12,373                             12,969               
12/00               13,855                             14,484               
7/01               14,352                             15,122              

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Tax-Free Income Fund from 3/20/95 (Institutional Class      
Shares) and 3/31/95 (Investment Class Shares) to 7/31/01, and represents the    
reinvestment of dividends and capital gains in the Fund.                        

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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Portfolio Reviews                                                               

Kent Intermediate Tax-Free Fund+                                      
By Michael Martin, CFA                                                
Portfolio Manager                                                     

Municipal bond yields fell during most of the 12 month period ended July 31,  
2001, due to a slowdown in the pace of economic growth and six interest rate    
cuts by the Federal Reserve. Municipal bond prices, which move in the opposite  
direction of yields, rose in that environment.                                  

Signs of a severe economic slowdown during the period raised fears that the   
economy would enter a recession. The Federal Reserve in an effort to spark the  
economy cut short-term interest rates by a total of 2.75 percentage points.     
Those rate cuts look to have kept the economy out of recession, but economic    
growth during much of the period was extremely weak.                            

Investors during the period expected the Federal Reserve to ease its monetary 
policy, which helped push rates lower well before the Federal Reserve actually  
began cutting rates in January. The yield on a ten-year AAA-rated general obli- 
gation bond began the period at 4.83% and declined during most of the period.   
Yields rose temporarily in April as individual investors liquidated municipal   
holdings to pay their tax bills. However, yields fell during the rest of the    
period as the economy showed further weakness and the Federal Reserve continued 
to cut rates. The yield on a ten-year AAA-rated general obligation bond ended   
the period at 4.22%, a net decline of 61 basis points.                          

Municipal bond issuance for the first half of 2001 totaled $154 billion, 38%  
higher than the same period of 2000. However, that large supply was met with    
strong demand from investors seeking capital preservation in the wake of sig-   
nificant stock market losses during the period.                                 

Intermediate-term municipal bonds underperformed intermediate-term Treasury   
securities. The ratio of the yield between a ten-year municipal security and a  
comparable Treasury security ended the period at 83.8%, up from 79.9% on August 
1, 2000. That underperformance in the ten-year municipal sector was a result of 
the strength of the rally experienced in the Treasury market as the Federal     
Reserve aggressively cut rates.                                                 

The Fund's Institutional and Investment Shares posted total returns of 8.57%  
and 8.30%, respectively, for the 12 months through July 31, 2001. That compared 
to a 7.66% total return for the Fund's benchmark the Lehman Brothers Three-Year 
General Obligation Municipal Bond Index.                                        

Positioning the Fund                                                            

The Fund's average maturity began the period at 7.99 years. We reduced the    
average maturity as yields fell during the period, consistent with our strategy 
of selling into market rallies. The Fund's average maturity was 7.81 years by   
the end of 2000, and it stood at 6.23 years on July 31, 2001.*                  

 We focused on municipal bonds with strong credit ratings, as the extra yield on
lower-quality bonds was not enough to justify the additional credit risk of such
bonds. The average credit rating of the Fund's portfolio was very high, at AA.  
Investors favored such high-quality issues during the period and largely avoided
lower-rated bonds in the wake of economic weakness.*                            

****  

4 star Morningstar rating 
(among 1,667 municipal bond 
funds overall as of 7/31/01)++  
(Institutional Shares)  

[GRAPH]                                                   

Kent Intermediate Tax-Free Fund                                                 
Distribution of net assets*                                                     
As of July 31, 2001                                                             

Mountain          8.4%                                                          
Other             4.1%                                                          
East             10.7%                                                          
North Central    44.7%                                                          
South            14.6%                                                          
Pacific          17.5%                                                          

Kent Intermediate Tax-Free Fund                                                 
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 3.24%
Investment Class.......................... 3.00%

SEC 30-day yield is computed based on net income during the 30-day period ended 
July 31, 2001. Yield calculations represent past performance and will           
fluctuate.                                                                      

Certain fees were waived, had these waivers not been in effect, the 30-day SEC  
yields would have been lower.                                                   

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

The outlook                                                                     

The strength of the U.S. economy continues to be of significant concern for   
investors. The Federal Reserve need to cut short-term interest rates further if 
economic growth remains sluggish. That said, we believe the worst of the eco-   
nomic slowdown is behind us, and that the Federal Reserve's monetary policy may 
shift to a more neutral stance. Bond yields will likely trade in a narrow range 
until there is more clear evidence about the economy's health, although yields  
may be higher by the end of the year if the economy gains momentum. We will     
attempt to take advantage of any spike in yields to purchase high-quality       
municipal securities at attractive yields.                                      
--------------------------------------------------------------------------------

+The Fund's income may be subject to certain state and local taxes and,         
depending on your tax status, the federal alternative minimum tax.              
*The Fund's portfolio composition is subject to change.                         
++Morningstar proprietary ratings reflect risk-adjusted performance through     
7/31/01. The ratings are subject to change every month. Past performance is no  
guarantee of future results. Morningstar ratings are calculated from a fund's   
three-, five- and ten-year returns (with fee adjustments) on excess of 90-day   
Treasury bill returns, and a risk factor that reflects fund performance below   
90-day Treasury bill returns. The Fund received 4 stars for the three-year and  
five-year period (Institutional Shares) and received 4 stars for the three-year 
period and 3 stars for the five-year period (Investment Shares). Funds with     
multiple share classes have a common portfolio. It was rated among 1,667 and    
1,444 municipal funds for the three- and five-year periods, respectively. The   
overall rating is a weighted average of the three-, five- and 10-year rating    
(where applicable). Ten percent of the funds in a rating category receive 5     
stars, 22.5% receive 4 stars, 35% receive 3 stars, 22.5% receive 2 stars and    
10% receive 1 star.                                                             

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Kent Intermediate Tax-Free Fund                                                 

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                  Institutional Class    Investment Class                       
                 (Inception: 12/16/92) (Inception: 12/18/92)                    
------------------------------------------------------------------------------- 

                                                                                
One Year                 8.57%                 8.30%                            
 ...............................................................................
Three Years              5.03%                 4.76%                            
 ...............................................................................
Five Years               5.49%                 5.22%                            
 ...............................................................................
Since Inception          5.32%                 5.10%                            

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

Growth of a $10,000 Investment                                                  
  As compared with the Lehman Brothers Three-Year General Obligation Municipal
Bond Index and the Lehman Brothers Five-Year General Obligation Municipal Bond
                                                                         Index

[GRAPH] 
Institutional Class Shares                                                      

      Kent Intermediate    Lehman Brothers         Lehman Brothers
         Tax-Free Fund     Three-Year General      Five-Year General
           Institutional    Obligation Municipal    Obligation Municipal
      Class Shares         Bond Index               Bond Index
12/16/92          10,000              10,000                   10,000           
12/92          10,060              10,300                   10,500        
12/93          10,895              10,673                   10,930        
12/94          10,567              10,755                   10,779        
12/95          11,941              11,705                   12,032        
12/96          12,349              12,243                   12,589        
12/97          13,222              12,905                   13,406        
12/98          13,929              13,572                   13,521        
12/99          13,788              13,833                   14,290        
12/00          15,028              14,698                   15,387        
7/01          15,638              15,376                   16,138       

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

[GRAPH] 
Investment Class Shares                                                         
      Kent Intermediate       Lehman Brothers      Lehman Brothers
          Tax-Free Fund        Three-Year General    Five-Year General
             Investment         Obligation Municipal  Obligation Municipal
       Class Shares             Bond Index            Bond Index
12/18/92          10,000                  10,000                10,000          
12/92          10,040                  10,200                10,600       
12/93          10,873                  10,673                10,930       
12/94          10,543                  10,755                10,779       
12/95          11,889                  11,705                12,032       
12/96          12,266                  12,243                12,581       
12/97          13,100                  12,905                13,406       
12/98          13,765                  13,572                13,521       
12/99          13,591                  13,833                14,290       
12/00          14,776                  14,698                15,387       
7/01          15,353                  15,376                16,138      

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Intermediate Tax-Free Fund from 12/16/92 (Institutional     
Class Shares) and 12/18/92 (Investment Class Shares) to 7/31/01, and            
represents the reinvestment of dividends and capital gains in the Fund.         

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

25  

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Portfolio Reviews                                                               

Kent Michigan Municipal Bond Fund+,++                                 
By Sarah M. Quirk                                                     
Portfolio Manager                                                     

Municipal bonds performed well during the 12 month period ended July 31, 2001.
Yields on all types of municipal bonds fell, due to weaker-than-expected eco-   
nomic growth and six interest rate cuts by the Federal Reserve Board.           

The U.S. economy slowed significantly during the period, as the Federal       
Reserve's restrictive monetary policy during the first half of 2000 began to    
take effect. The extent of the economic slowdown caused investors to fear that  
the economy would slide into recession. The Federal Reserve aggressively cut    
short-term interest rates six times during the first half of 2001, for a total  
reduction of 2.75 percentage points, in an effort to boost economic growth. The 
Federal Reserve's efforts appear to have kept the economy from slipping into    
recession, although economic growth during the period was extremely weak.       

Shorter-term municipal securities with maturites of less than 10 years per-   
formed especially well in that environment, as such bonds are strongly affected 
by the aggressive Federal Reserve policy. The yield on the five-year AAA-rated  
general obligation municipal security fell 102 basis points during the period,  
to 3.56%.                                                                       

Municipal bonds also benefited from a positive supply-and-demand environment. 
The supply of Michigan municipal issues, although higher than last year, has    
been met with solid demand. Investors seeking capital preservation shifted      
money into the municipal market as the economy weakened and the stock market    
posted significant losses.                                                      

The State of Michigan's general obligation rating was upgraded during the sec-
ond half of 2000 to AAA by the two major agencies. The rating reflects the      
state's "consistently strong fiscal operations and budgetary performance" and   
"a manufacturing-reliant economic base that has exhibited strength and          
increased diversification, steady employment growth and low debt." The upgrade  
effects $840 million of general obligation debt and $8.6 billion of local       
school bonds that qualify for Michigan's School Bond Loan Fund program.         

The Fund's Institutional and Investment Shares delivered total returns of     
7.34% and 7.19%, respectively, for the 12 months ended July 31, 2001. That com- 
pared to a 7.66% total return for the Fund's benchmark the Lehman Brothers      
Three-Year General Obligations Municipal Bond Index.                            

Managing the Fund                                                               

The average maturity of the Fund's portfolio stood at 3.8 years on August 1,  
2000. We reduced the average maturity throughout the period as municipal bond   
yields fell. The average maturity of the Fund's portfolio was 3.25 years as of  
July 31, 2001.*                                                                 

We maintained the high quality of the portfolio during the period. The yield  
advantage offered by lower-rated issues was not enough to justify the additional
risk inherent in such securities. We also looked for opportunities to add       
additional yield to the Fund without compromis-ing the overall quality of the   
portfolio. We did this during the fourth quarter of 2000 by buying high-quality 
bonds such as Michigan Higher Education for Kalamazoo College with a 5.25%      
coupon, due in December 2003 (0.71% of net assets).*                            

[GRAPHIC] 
4 star Morningstar rating 
(among 1,667 municipal bond 
funds overall as of 7/31/00)/1/ 

[GRAPH]                             

Kent Michigan Municipal Bond Fund                                               
Distribution of Net Assets*                                                     
As of July 31, 2001                                                             

Cash Equivalents Net                                                            
Other Assets & Liabilities          1.2%                                      
Municipal Securities                98.8%                                       

Kent Michigan Municipal Bond Fund                                               
SEC 30-Day Yields                                                               
As of July 31, 2001                                                             

                                                                [Download Table]
                                                
Institutional Class....................... 3.26%
Investment Class.......................... 3.11%

SEC 30-day yield is computed based on net income during the 30-day period ended 
July 31, 2001. Yield calculations represent past performance and will           
fluctuate.                                                                      

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

Going forward                                                                   

The Federal Reserve may need to cut short-term interest rates further if the  
economy remains weak. We believe, however, that we are through the worst of the 
economic slowdown, which reduces the likelihood of significant further rate     
cuts by the Federal Reserve during the coming months. Bond yields could trade   
in a narrow range until investors receive clearer signals regarding the direc-  
tion of the economy, but yields could rise later in 2001 if the economy shows   
signs of recovering. We will look to extend the average maturity of the portfo- 
lio when market conditions provide opportunities to do so. For example, we will 
attempt to take advantage of rising rates to purchase high-quality municipal    
securities at attractive yields. We also will maintain the high credit quality  
of the Fund's portfolio.                                                        
--------------------------------------------------------------------------------
+The Fund's income may be subject to certain state and local taxes and,         
depending on your tax status, the federal alternative minimum tax.              
++Regional funds may be subject to additional risk, since the companies they    
invest in are located in one geographical location.                             
*The Fund's portfolio composition is subject to change.                         
/1/ Morningstar proprietary ratings reflect risk-adjusted performance through   
7/31/01. The ratings are subject to change every month. Past performance is no  
guarantee of future results. Morningstar ratings are calculated from a fund's   
three, five- and ten-year returns' (with fee adjustments) on excess of 90-day   
Treasury bill returns, and a risk factor that reflects performance below 90-day 
Treasury bill returns. The Fund received 5 stars for the three-year period and  
4 stars for the five-year period for the Institutional and Investment shares.   
Funds with multiple share classes have a common portfolio. It was rated among   
1,667 and 1,444 municipal bond funds for the three- and five-year periods,      
respectively. The overall rating is a weighted average of the three-, five- and 
10-year rating (where applicable). Ten percent of the funds in a rating         
category receive 5 stars, 22.5% receive 4 stars, 35% receive 3 stars, 22.5%     
receive 2 stars and 10% receive 1 star.                                         

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Kent Michigan Municipal Bond Fund                                               

Average Annual Returns as of July 31, 2001                                      

                                                                [Download Table]

                 Institutional Class   Investment Class                         
                 (Inception: 5/3/93) (Inception: 5/11/93)                       
------------------------------------------------------------------------------- 

                                                                                
One Year                7.34%               7.19%                               
 ...............................................................................
Three Years             4.50%               4.35%                               
 ...............................................................................
Five Years              4.69%               4.54%                               
 ...............................................................................
Since Inception         4.39%               4.23%                               

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

Growth of a $10,000 Investment                                                  
               As compared with the Lehman Brothers Three-Year General
Obligation Municipal Bond Index         

[GRAPH] 
Institutional Class Shares                                                      
  Kent Michigan Municipal Bond Fund   Lehman Brothers Three-Year
    Institutional Class Shares          General Obligation Municipal
                      Bond Index
5/3/93             10,000                               10,000                  
12/93             10,300                               10,311                 
12/94             10,340                               10,390                 
12/95             11,190                               11,308                 
12/96             11,580                               11,828                 
12/97             12,222                               12,468                 
12/98             12,802                               13,113                 
12/99             12,887                               13,365                 
12/00             13,700                               14,200                 
7/01             14,249                               14,855                

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

[GRAPH] 
Investment Class Shares                                                         
 Kent Michigan Municipal Bond Fund    Lehman Brothers Three-Year
      Investment Class Shares         General Obligation Municipal
                                    Bond Index
5/11/93             10,000                             10,000                   
12/93             10,285                             10,311                 
12/94             10,301                             10,390                 
12/95             11,126                             11,308                 
12/96             11,500                             11,828                 
12/97             12,119                             12,468                 
12/98             12,676                             13,113                 
12/99             12,741                             13,365                 
12/00             13,512                             14,200                 
7/01             14,055                             14,855                

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

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

The chart represents historical performance of a hypothetical investment of     
$10,000 in the Kent Michigan Municipal Bond Fund from 5/3/93 (Institutional     
Class Shares) and 5/11/93 (Investment Class Shares) to 7/31/01, and represents  
the reinvestment of dividends and capital gains in the Fund.                    

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

During various periods reflected in the graphs above certain fees were waived.  
Had waivers not been in effect, total returns would have been lower.            

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          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (98.9%):                                                         
        Advertising (0.1%):                                                    
 30,900 Interpublic Group Cos., Inc. ...........................   $    845,733
                                                                   ------------
        Aerospace & Defense (0.8%):                                            
 57,725 Boeing Co. .............................................      3,378,644
 23,750 Lockheed Martin Corp. ..................................        940,975
 18,250 Rockwell Collins (b)....................................        377,775
                                                                   ------------
                                                                      4,697,394
                                                                   ------------
        Apparel Manufacturers (0.1%):                                          
  8,200 V.F. Corp. .............................................        300,202
                                                                   ------------
        Appliances & Household Products (0.1%):                                
  4,600 Whirlpool Corp. ........................................        324,484
                                                                   ------------
        Applications Software (3.4%):                                          
294,000 Microsoft Corp. (b).....................................     19,459,860
 27,000 Parametric Technology Corp. (b).........................        255,690
 14,200 Siebel Systems, Inc. (b)................................        489,332
                                                                   ------------
                                                                     20,204,882
                                                                   ------------
        Auto/Truck -- Original Equipment (0.1%):                               
 31,525 Delphi Automotive Systems Corp. ........................        515,749
  6,350 TRW, Inc. ..............................................        280,988
                                                                   ------------
                                                                        796,737
                                                                   ------------
        Auto/Truck -- Replacement Equipment (0.1%):                            
 22,650 Genuine Parts Co. ......................................        745,638
                                                                   ------------
        Automotive (0.8%):                                                     
109,700 Ford Motor Co. .........................................      2,794,059
 31,200 General Motors Corp. ...................................      1,984,320
                                                                   ------------
                                                                      4,778,379
                                                                   ------------
        Banks -- Major Regional (4.5%):                                        
 70,500 Bank One Corp. .........................................      2,729,055
 12,500 Comerica, Inc. .........................................        769,875
 30,562 Fifth Third Bancorp**...................................      1,926,017
 53,000 First Union Corp. ......................................      1,876,200
 63,675 FleetBoston Financial Corp. ............................      2,389,086
 16,500 Huntington Bancshares...................................        302,115
 22,400 KeyCorp.................................................        599,200
 37,900 Mellon Financial Corp. .................................      1,440,958
 34,300 National City Corp. ....................................      1,101,716
 18,000 Northern Trust Corp. ...................................      1,148,400
 20,200 PNC Bank Corp. .........................................      1,340,270
 21,900 State Street Corp. .....................................      1,177,563
 13,400 SunTrust Banks, Inc. ...................................        927,950
105,200 U.S. Bancorp............................................      2,497,448
  6,800 Union Planters Corp. ...................................        303,892
 11,500 Wachovia Corp. .........................................        817,650
111,000 Wells Fargo Co. ........................................      5,112,659
                                                                   ------------
                                                                     26,460,054
                                                                   ------------
        Banks -- Money Center (2.3%):                                          
 90,100 Bank of America Corp. ..................................      5,732,162
 50,700 Bank of New York Co., Inc. .............................      2,274,402
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    
        Banks -- Money Center (continued)                                    

 23,900 BB&T Corp. ...........................................   $    882,149
104,800 J.P. Morgan Chase & Co. ..............................      4,537,840
                                                                 ------------
                                                                   13,426,553
                                                                 ------------
        Banks -- South (0.1%):                                               
 18,000 SouthTrust Corp. .....................................        462,060
                                                                 ------------
        Beverages -- Alcoholic (0.5%):                                       
  6,000 Adolph Coors Co. .....................................        301,740
 55,800 Anheuser-Busch Co., Inc. .............................      2,416,698
                                                                 ------------
                                                                    2,718,438
                                                                 ------------
        Beverages -- Soft Drinks (1.7%):                                     
137,300 Coca-Cola Co. ........................................      6,123,580
 84,300 PepsiCo, Inc. ........................................      3,930,909
                                                                 ------------
                                                                   10,054,489
                                                                 ------------
        Broadcasting/Cable (0.7%):                                           
 32,600 Clear Channel Communications, Inc. (b)................      1,910,360
 55,000 Comcast Corp., Special Class A (b)....................      2,091,650
                                                                 ------------
                                                                    4,002,010
                                                                 ------------
        Building -- Maintenance & Services (0.0%):                           
  7,300 Ecolab, Inc. .........................................        292,292
                                                                 ------------
        Building Products -- Retail/Wholesale (1.3%):                        
123,500 Home Depot, Inc. .....................................      6,220,695
 41,000 Lowe's Cos., Inc. ....................................      1,565,380
                                                                 ------------
                                                                    7,786,075
                                                                 ------------
        Building Products -- Wood (0.2%):                                    
 15,425 Weyerhaeuser Co. .....................................        921,335
                                                                 ------------
        Chemicals -- Diversified (0.8%):                                     
 53,600 Dow Chemical Co. .....................................      1,951,040
 58,900 E.I. du Pont de Nemours & Co. ........................      2,522,098
                                                                 ------------
                                                                    4,473,138
                                                                 ------------
        Chemicals -- Specialty (0.3%):                                       
 15,400 Air Products & Chemical, Inc. ........................        628,782
  8,700 Eastman Chemical Co. .................................        381,756
  9,900 Praxair, Inc. ........................................        448,866
  9,800 Sigma-Aldrich Corp. ..................................        424,242
                                                                 ------------
                                                                    1,883,646
                                                                 ------------
        Circuits (0.1%):                                                     
 15,600 Maxim Integrated Products, Inc. (b)...................        720,252
                                                                 ------------
        Commercial Services (0.3%):                                          
 63,325 Cendant Corp. (b).....................................      1,288,664
 10,000 Convergys Corp. (b)...................................        311,500
                                                                 ------------
                                                                    1,600,164
                                                                 ------------
        Commercial Services -- Finance (0.1%):                               
  6,400 H & R Block, Inc. ....................................        456,768
                                                                 ------------

Continued 

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          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Computer Software (1.3%):                                            
 13,700 Adobe Systems, Inc. ..................................   $    513,613
 10,000 Autodesk, Inc. .......................................        372,900
 46,500 Computer Associates International, Inc. ..............      1,603,320
298,500 Oracle Corp. (b)......................................      5,396,880
                                                                 ------------
                                                                    7,886,713
                                                                 ------------
        Computers (3.5%):                                                    
137,300 Dell Computer Corp. (b)...............................      3,697,489
 19,275 Gateway Inc. (b)......................................        202,195
125,800 Hewlett-Packard Co. ..................................      3,102,228
100,000 IBM Corp. ............................................     10,521,000
174,300 Sun Microsystems, Inc. (b)............................      2,839,347
                                                                 ------------
                                                                   20,362,259
                                                                 ------------
        Computers -- Mainframe (0.0%):                                       
 20,000 Unisys Corp. (b)......................................        229,000
                                                                 ------------
        Computers -- Memory Devices (0.5%):                                  
117,200 EMC Corp. (b).........................................      2,311,184
 21,400 VERITAS Software Corp. (b)............................        907,574
                                                                 ------------
                                                                    3,218,758
                                                                 ------------
        Computers -- Micro (0.3%):                                           
112,675 Compaq Computer Corp. ................................      1,683,365
                                                                 ------------
        Computers -- Networking Products (1.3%):                             
387,000 Cisco Systems, Inc. (b)...............................      7,438,140
 17,750 Network Appliance, Inc. (b)...........................        221,520
                                                                 ------------
                                                                    7,659,660
                                                                 ------------
        Computers -- Services (0.7%):                                        
 12,250 Computer Sciences Corp. (b)...........................        442,348
 32,050 Electronic Data Systems Corp. ........................      2,046,392
 27,375 First Data Corp. .....................................      1,897,635
                                                                 ------------
                                                                    4,386,375
                                                                 ------------
        Consumer Durable (0.1%):                                             
  9,000 Danaher Corp. ........................................        509,310
                                                                 ------------
        Consumer Products (0.1%):                                            
 15,000 Fortune Brands, Inc. .................................        549,300
                                                                 ------------
        Containers -- Paper & Plastic (0.1%):                                
 31,500 Pactiv Corp. (b)......................................        489,195
                                                                 ------------
        Cosmetics & Toiletries (0.7%):                                       
 10,375 Alberto-Culver Co., Class B...........................        450,068
 39,812 Gillette Co. .........................................      1,109,560
 38,100 Kimberly-Clark Corp. .................................      2,316,861
                                                                 ------------
                                                                    3,876,489
                                                                 ------------
        Cruise Lines (0.2%):                                                 
 32,000 Carnival Corp. .......................................      1,068,800
                                                                 ------------
        Data Processing/Management (0.5%):                                   
 54,000 Automatic Data Processing, Inc. ......................      2,751,300
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Diversified (5.1%):                                                    
  9,000 FMC Corp. (b)...........................................   $    598,770
539,000 General Electric Co. ...................................     23,446,499
 10,975 Johnson Controls, Inc. .................................        884,585
 20,800 Minnesota Mining & Manufacturing Co.....................      2,327,104
 12,300 Textron, Inc. ..........................................        692,736
 29,209 United Technologies Corp. ..............................      2,143,941
                                                                   ------------
                                                                     30,093,635
                                                                   ------------
        Diversified Manufacturing (1.3%):                                      
 49,000 Honeywell International, Inc. ..........................      1,806,630
114,025 Tyco International, Ltd. ...............................      6,066,130
                                                                   ------------
                                                                      7,872,760
                                                                   ------------
        Electric -- Integrated (1.2%):                                         
 19,500 Allegheny Energy, Inc. .................................        840,840
 16,100 Dominion Resources, Inc. ...............................        973,889
 24,300 Exelon Corp. ...........................................      1,372,950
 21,411 Mirant Corp. (b)........................................        662,242
 16,566 NiSource, Inc. .........................................        436,680
  9,900 PPL Corp. ..............................................        445,302
 31,675 TXU Corp. ..............................................      1,472,887
 32,050 Xcel Energy, Inc. ......................................        863,427
                                                                   ------------
                                                                      7,068,217
                                                                   ------------
        Electronic -- Miscellaneous Components (0.2%):                         
 17,000 Linear Technology Corp. ................................        740,860
 16,960 Sanmina Corp. (b).......................................        369,898
                                                                   ------------
                                                                      1,110,758
                                                                   ------------
        Electronic Components -- Semiconductors (3.8%):                        
 18,250 Advanced Micro Devices, Inc. (b)........................        333,245
 23,500 Altera Corp. (b)........................................        706,410
 21,000 Analog Devices, Inc. (b)................................        966,000
 43,000 Applied Materials, Inc. (b).............................      1,971,980
388,600 Intel Corp. ............................................     11,584,165
 29,500 Micron Technology, Inc. (b).............................      1,239,000
 15,000 Novellus Systems, Inc. (b)..............................        764,550
  4,900 QLogic Corp. (b)........................................        188,209
 18,250 Rockwell International Corp. ...........................        292,913
106,725 Texas Instruments, Inc. ................................      3,682,012
 19,095 Xilinx, Inc. (b)........................................        763,800
                                                                   ------------
                                                                     22,492,284
                                                                   ------------
        Electronic Components/Instruments (0.1%):                              
 36,050 Solectron Corp. (b).....................................        630,154
                                                                   ------------
        Electronic Measuring Equipment (0.0%):                                 
  6,000 Tektronix, Inc. (b).....................................        136,140
                                                                   ------------
        Electronic Measuring Instruments (0.1%):                               
 27,375 Agilent Technologies, Inc. (b)..........................        783,199
                                                                   ------------
        Fiber Optics (0.1%):                                                   
 55,500 Corning, Inc. ..........................................        869,130
                                                                   ------------
        Finance (0.4%):                                                        
 63,200 Washington Mutual, Inc. ................................      2,560,864
                                                                   ------------

Continued 

29

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          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Financial -- Consumer Loans (0.4%):                                  
 34,700 Household International, Inc. ........................   $  2,300,263
                                                                 ------------
        Financial -- Investment Banker/Broker (0.6%):                        
 54,100 Charles Schwab Corp. .................................        810,959
 53,400 Merrill Lynch & Co., Inc. ............................      2,896,416
                                                                 ------------
                                                                    3,707,375
                                                                 ------------
        Financial -- Miscellaneous Services (1.0%):                          
 77,237 American Express Co. .................................      3,114,968
 10,986 Capital One Financial Corp. ..........................        706,070
 52,275 MBNA Corp. ...........................................      1,850,535
                                                                 ------------
                                                                    5,671,573
                                                                 ------------
        Financial -- Mortgage & Related Services (1.4%):                     
 60,300 Fannie Mae............................................      5,019,975
 44,975 Freddie Mac...........................................      3,078,089
                                                                 ------------
                                                                    8,098,064
                                                                 ------------
        Financial Services -- Diversified (3.4%):                            
307,000 Citigroup, Inc. ......................................     15,414,470
 73,200 Morgan Stanley Dean Witter & Co. .....................      4,378,824
                                                                 ------------
                                                                   19,793,294
                                                                 ------------
        Food -- Canned (0.2%):                                               
 22,991 H.J. Heinz Co.........................................        993,441
                                                                 ------------
        Food -- Diversified (1.1%):                                          
 34,600 ConAgra, Inc. ........................................        743,554
 27,069 General Mills, Inc....................................      1,190,495
 22,300 Kellogg Co. ..........................................        670,561
  7,000 Quaker Oats Co. ......................................        616,000
 17,000 Ralston Purina Group..................................        545,870
 39,759 Sara Lee Corp.........................................        801,939
 30,030 Unilever NV...........................................      1,800,298
                                                                 ------------
                                                                    6,368,717
                                                                 ------------
        Food Items -- Wholesale (0.1%):                                      
 31,200 SUPERVALU, Inc........................................        654,264
                                                                 ------------
        Food Products (0.3%):                                                
 42,000 Archer-Daniels-Midland Co. ...........................        562,380
 28,675 Safeway, Inc. (b).....................................      1,266,288
                                                                 ------------
                                                                    1,828,668
                                                                 ------------
        Gas -- Distribution (0.1%):                                          
 21,200 KeySpan Corp. ........................................        649,568
                                                                 ------------
        Health Care (0.1%):                                                  
 15,200 McKesson HBOC, Inc. ..................................        630,040
                                                                 ------------
        Hotels & Lodging (0.2%):                                             
 19,900 Marriott International, Inc., Class A.................        950,225
                                                                 ------------
        Hotels & Motels (0.1%):                                              
 17,500 Starwood Hotels & Resorts Worldwide, Inc. ............        624,575
                                                                 ------------
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Instruments -- Scientific (0.1%):                                    
 15,600 PerkinElmer, Inc......................................   $    491,400
                                                                 ------------
        Insurance -- Brokers (0.3%):                                         
 18,500 Marsh & McLennan Cos., Inc. ..........................      1,857,400
                                                                 ------------
        Insurance -- Financial Guarantee (0.1%):                             
  9,400 MBIA, Inc.............................................        527,904
                                                                 ------------
        Insurance -- Life & Health (0.9%):                                   
 44,000 American General Corp. ...............................      2,034,999
 13,250 CIGNA Corp. ..........................................      1,329,108
 10,650 Jefferson-Pilot Corp. ................................        505,982
 13,500 Lincoln National Corp.................................        688,905
 16,175 Torchmark Corp........................................        671,424
                                                                 ------------
                                                                    5,230,418
                                                                 ------------
        Insurance -- Multi-Line (3.0%):                                      
  8,275 Aetna, Inc. (b).......................................        233,438
 45,050 Allstate Corp. .......................................      1,574,948
147,600 American International Group, Inc.....................     12,287,700
 15,345 Hartford Financial Services Group, Inc................      1,015,992
 42,000 MetLife, Inc. ........................................      1,245,300
 15,800 MGIC Investment Corp. ................................      1,185,632
                                                                 ------------
                                                                   17,543,010
                                                                 ------------
        Insurance -- Property & Casualty (0.2%):                             
 13,200 Chubb Corp. ..........................................        926,244
                                                                 ------------
        Internet Services/Software (0.1%):                                   
 30,000 Yahoo!, Inc. (b)......................................        528,600
                                                                 ------------
        Machinery -- Construction/Mining (0.1%):                             
 18,000 Ingersoll-Rand Co. ...................................        786,240
                                                                 ------------
        Machinery -- Electrical (0.3%):                                      
 31,700 Emerson Electric Co. .................................      1,818,312
                                                                 ------------
        Machinery -- General Industrial (0.3%):                              
 22,350 Dover Corp. ..........................................        807,953
 17,900 Illinois Tool Works, Inc. ............................      1,127,700
                                                                 ------------
                                                                    1,935,653
                                                                 ------------
        Media Conglomerates (3.2%):                                          
245,199 AOL Time Warner, Inc. (b).............................     11,144,295
118,600 The Walt Disney Co. ..................................      3,125,110
 94,200 Viacom, Inc., Class B (b).............................      4,691,160
                                                                 ------------
                                                                   18,960,565
                                                                 ------------
        Medical -- Biomedical/Genetic (0.7%):                                
 55,100 Amgen, Inc. (b).......................................      3,455,321
 12,000 Biogen, Inc. (b)......................................        680,280
                                                                 ------------
                                                                    4,135,601
                                                                 ------------
        Medical -- Drugs (8.8%):                                             
 84,500 Abbott Laboratories...................................      4,528,355
 69,500 American Home Products Corp. .........................      4,191,545
103,400 Bristol-Myers Squibb Co. .............................      6,115,076
 67,300 Eli Lilly & Co. ......................................      5,335,544

Continued 

30

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          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Medical -- Drugs (continued)                                         
 11,000 MedImmune, Inc. (b)...................................   $    423,720
135,000 Merck & Co., Inc. ....................................      9,177,300
349,500 Pfizer, Inc. .........................................     14,406,389
 72,300 Pharmacia Corp. ......................................      3,226,026
 93,300 Schering-Plough Corp. ................................      3,643,365
                                                                 ------------
                                                                   51,047,320
                                                                 ------------
        Medical -- Health Medical Organization (0.1%):                       
  3,600 Wellpoint Health Networks (b).........................        385,056
                                                                 ------------
        Medical -- Hospital (0.4%):                                          
 32,400 HCA-The Healthcare Co. ...............................      1,488,780
 19,000 Tenet Healthcare Corp. (b)............................      1,054,690
                                                                 ------------
                                                                    2,543,470
                                                                 ------------
        Medical -- Outpatient/Home Care (0.1%):                              
 25,000 HEALTHSOUTH Corp. (b).................................        427,500
                                                                 ------------
        Medical -- Wholesale Drug Distribution (0.3%):                       
 22,500 Cardinal Health, Inc. ................................      1,656,675
                                                                 ------------
        Medical Instruments (0.8%):                                          
 10,200 Biomet, Inc. .........................................        495,210
 29,075 Guidant Corp. (b).....................................        926,911
 64,600 Medtronic, Inc. ......................................      3,102,738
                                                                 ------------
                                                                    4,524,859
                                                                 ------------
        Medical Products (1.8%):                                             
 36,400 Baxter International, Inc. ...........................      1,812,720
161,500 Johnson & Johnson.....................................      8,737,150
                                                                 ------------
                                                                   10,549,870
                                                                 ------------
        Metal -- Gold (0.1%):                                                
 32,000 Barrick Gold Corp. ...................................        476,480
 10,500 Newmont Mining Corp. .................................        196,350
                                                                 ------------
                                                                      672,830
                                                                 ------------
        Metals (0.4%):                                                       
 61,800 Alcoa, Inc. ..........................................      2,424,414
  9,500 Inco, Ltd. (b)........................................        159,220
                                                                 ------------
                                                                    2,583,634
                                                                 ------------
        Networking Products (0.2%):                                          
187,000 Lucent Technologies, Inc. ............................      1,252,900
                                                                 ------------
        Office Automation & Equipment (0.2%):                                
 24,650 Pitney Bowes, Inc. ...................................        990,930
                                                                 ------------
        Office Supplies & Forms (0.1%):                                      
  7,325 Avery Dennison Corp. .................................        375,480
                                                                 ------------
        Oil & Gas (0.4%):                                                    
 13,500 Anadarko Petroleum Corp. .............................        766,800
 45,525 Conoco, Inc., Class B.................................      1,411,275
 11,100 Transocean Sedco Forex, Inc. .........................        358,419
                                                                 ------------
                                                                    2,536,494
                                                                 ------------
                                                                [Download Table]

Shares                  Security Description                      Value    
------                  --------------------                      -----    
                                                                           

COMMON STOCKS (continued)                                                  
        Oil & Gas -- Exploration & Production (0.1%):                      
 10,200 Kerr-McGee Corp. ...................................   $    644,436
                                                               ------------
        Oil -- Field Services (0.5%):                                      
 30,000 Halliburton Co. ....................................      1,050,300
 38,500 Schlumberger, Ltd. .................................      2,069,375
                                                               ------------
                                                                  3,119,675
                                                               ------------
        Oil -- International Integrated (5.0%):                            
 40,000 Chevron Corp. ......................................      3,655,600
392,800 Exxon Mobil Corp. ..................................     16,403,327
119,000 Royal Dutch Petroleum Co., ADR......................      6,902,000
 30,000 Texaco, Inc. .......................................      2,077,500
                                                               ------------
                                                                 29,038,427
                                                               ------------
        Oil -- Production/Pipeline (0.5%):                                 
 17,400 Dynegy Inc. ........................................        807,012
 48,100 Enron Corp. ........................................      2,181,335
                                                               ------------
                                                                  2,988,347
                                                               ------------
        Oil -- U.S. Exploration & Production (0.1%):                       
 14,600 Devon Energy Corp. .................................        791,466
                                                               ------------
        Oil -- U.S. Integrated (0.5%):                                     
 18,500 Phillips Petroleum Co. .............................      1,056,165
 27,025 Unocal Corp. .......................................        966,955
 26,575 USX-Marathon Group..................................        788,480
                                                               ------------
                                                                  2,811,600
                                                               ------------
        Oil Field Machinery & Equipment (0.1%):                            
 18,000 Baker Hughes, Inc. .................................        640,440
                                                               ------------
        Oil Refining (0.1%):                                               
 18,000 Sunoco, Inc. .......................................        622,440
                                                               ------------
        Paper & Related Products (0.4%):                                   
 32,500 International Paper Co. ............................      1,327,950
 24,925 Mead Corp. .........................................        740,771
                                                               ------------
                                                                  2,068,721
                                                               ------------
        Photography (0.1%):                                                
 17,900 Eastman Kodak Co. ..................................        775,249
                                                               ------------
        Pipelines (0.4%):                                                  
 27,400 El Paso Energy Corp. ...............................      1,417,950
 31,050 The Williams Companies, Inc. .......................      1,040,175
                                                               ------------
                                                                  2,458,125
                                                               ------------
        Pollution Control (0.2%):                                          
 34,000 Waste Management, Inc. .............................      1,054,000
                                                               ------------
        Printers & Related Products (0.1%):                                
  7,325 Lexmark International Group, Inc. (b)...............        334,899
                                                               ------------
        Publishing -- Books (0.2%):                                        
 15,200 McGraw-Hill Cos., Inc. .............................        932,824
                                                               ------------

Continued 

31

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          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Publishing -- Newspapers (0.5%):                                       
 22,900 Gannett, Inc. ..........................................   $  1,534,987
 16,625 New York Times Co. .....................................        769,738
 18,000 Tribune Co. ............................................        742,680
                                                                   ------------
                                                                      3,047,405
                                                                   ------------
        Restaurants (0.4%):                                                    
 86,300 McDonald's Corp. .......................................      2,514,782
                                                                   ------------
        Retail (0.4%):                                                         
 11,100 Best Buy Co. (b)........................................        743,256
 17,650 Kohl's Corp. (b)........................................      1,010,992
 38,000 Staples, Inc. (b).......................................        569,620
                                                                   ------------
                                                                      2,323,868
                                                                   ------------
        Retail -- Apparel/Shoes (0.5%):                                        
 29,813 Coach, Inc. (b).........................................      1,126,037
 45,700 Gap, Inc. ..............................................      1,248,067
 43,450 Limited, Inc. ..........................................        737,347
                                                                   ------------
                                                                      3,111,451
                                                                   ------------
        Retail -- Consumer Electronics (0.1%):                                 
 14,500 RadioShack Corp. .......................................        409,335
                                                                   ------------
        Retail -- Discount (2.4%):                                             
 24,800 Costco Wholesale Corp. (b)..............................      1,067,640
237,700 Wal-Mart Stores, Inc.*..................................     13,287,430
                                                                   ------------
                                                                     14,355,070
                                                                   ------------
        Retail -- Drug Store (0.5%):                                           
 22,150 CVS Corp. ..............................................        797,622
 54,600 Walgreen Co. ...........................................      1,840,020
                                                                   ------------
                                                                      2,637,642
                                                                   ------------
        Retail -- Food & Drug (0.2%):                                          
 45,400 Kroger Co. (b)..........................................      1,196,744
                                                                   ------------
        Retail -- Jewelry (0.1%):                                              
  9,500 Tiffany & Co. ..........................................        335,350
                                                                   ------------
        Retail -- Major Department Stores (0.7%):                              
 21,100 May Department Stores Co. ..............................        700,520
 24,100 Sears, Roebuck & Co. ...................................      1,132,218
 64,100 Target Corp. ...........................................      2,480,670
                                                                   ------------
                                                                      4,313,408
                                                                   ------------
        Retail -- Regional Department Stores (0.1%):                           
 15,500 Federated Department Stores, Inc. (b)...................        598,300
                                                                   ------------
        Retail -- Wholesale -- Auto Parts (0.1%):                              
 12,200 AutoZone, Inc. (b)......................................        577,426
                                                                   ------------
        Rubber -- Tires (0.1%):                                                
 12,600 The B.F. Goodrich Co. ..................................        440,244
                                                                   ------------
        Shoes & Related Apparel (0.2%):                                        
 21,700 Nike, Inc., Class B.....................................      1,031,835
                                                                   ------------
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Soap & Cleaning Preparations (1.2%):                                 
 34,413 Colgate-Palmolive Co. ................................   $  1,865,185
 72,100 Procter & Gamble Co. .................................      5,120,542
                                                                 ------------
                                                                    6,985,727
                                                                 ------------
        Steel -- Producers (0.1%):                                           
  8,225 Nucor Corp. ..........................................        393,895
                                                                 ------------
        Telecommunications -- Equipment (0.9%):                              
 48,400 ADC Telecommunications, Inc. (b)......................        237,644
  8,885 Comverse Technology, Inc. (b).........................        251,268
 71,900 JDS Uniphase Corp. (b)................................        664,356
129,500 Nortel Networks Corp., ADR............................      1,029,525
 40,200 QUALCOMM, Inc. (b)....................................      2,541,845
 24,750 Tellabs, Inc. (b).....................................        407,633
                                                                 ------------
                                                                    5,132,271
                                                                 ------------
        Telecommunications -- Services/Equipment (0.2%):                     
 63,716 AT&T Wireless Services Inc. (b).......................      1,190,860
                                                                 ------------
        Telecommunications -- Services and Equipment (0.3%):                 
 25,000 Avaya, Inc. (b).......................................        313,250
 43,000 Nextel Communications, Inc., Class A (b)..............        715,950
 38,000 Sprint Corp., PCS Group (b)...........................        984,960
                                                                 ------------
                                                                    2,014,160
                                                                 ------------
        Telephone -- Integrated (3.0%):                                      
198,000 AT&T Corp. ...........................................      4,001,580
 90,300 Qwest Communications International, Inc. .............      2,347,800
162,600 Verizon Communications, Inc. .........................      8,804,790
161,000 WorldCom, Inc. (b)....................................      2,254,000
                                                                 ------------
                                                                   17,408,170
                                                                 ------------
        Tobacco (1.1%):                                                      
125,500 Philip Morris Cos., Inc. .............................      5,710,250
 23,550 U.S.T., Inc. .........................................        728,873
                                                                 ------------
                                                                    6,439,123
                                                                 ------------
        Tools -- Hand Held (0.1%):                                           
 16,500 The Stanley Works.....................................        719,235
                                                                 ------------
        Toys/Game/Hobby (0.1%):                                              
 21,900 Mattel, Inc. .........................................        392,010
                                                                 ------------
        Transportation -- Air Freight (0.1%):                                
 19,450 FDX Corp. (b).........................................        804,647
                                                                 ------------
        Transportation -- Airline (0.3%):                                    
 10,000 AMR Corp. (b).........................................        351,500
  7,000 Delta Air Lines, Inc. ................................        310,660
 42,000 Southwest Airlines Co. ...............................        840,420
                                                                 ------------
                                                                    1,502,580
                                                                 ------------
        Transportation -- Railroad (0.3%):                                   
 25,700 Burlington Northern Santa Fe Corp. ...................        687,218
 23,925 Union Pacific Corp. ..................................      1,284,533
                                                                 ------------
                                                                    1,971,751
                                                                 ------------

Continued 

32

N-30D
34th “Page” of 135
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Just 34th
          Growth and Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

 Shares                    Security Description                       Value    
 ------                    --------------------                       -----    
                                                                               

COMMON STOCKS (continued)                                                      
          Utilities -- Electric Power (1.6%):                                  
   17,000 Consolidated Edison, Inc. ............................   $    675,580
   13,300 Detroit Edison Co. ...................................        561,925
   64,700 Duke Energy Corp. ....................................      2,498,067
   31,850 Entergy Corp. ........................................      1,194,375
   18,350 First Energy Corp. ...................................        556,739
   17,200 Florida Power & Light, Inc. ..........................        928,800
   13,000 Public Service Enterprise Group, Inc. ................        608,400
   36,875 Reliant Energy, Inc. .................................      1,161,563
   49,000 Southern Co. .........................................      1,151,500
                                                                   ------------
                                                                      9,336,949
                                                                   ------------
          Utilities -- Telephone (2.6%):                                       
   17,700 ALLTEL Corp. .........................................      1,091,205
  110,000 BellSouth Corp. ......................................      4,477,000
  194,000 SBC Communications, Inc. .............................      8,735,820
   49,000 Sprint Corp. .........................................      1,143,660
                                                                   ------------
                                                                     15,447,685
                                                                   ------------
          Wireless Equipment (0.4%):                                           
  121,000 Motorola, Inc.........................................      2,261,490
                                                                   ------------
          Total Common Stocks...................................    579,970,882
                                                                   ------------
INVESTMENT COMPANIES (1.1%):                                                   
      278 Dreyfus Cash Management Money Market Fund.............            278
6,205,327 Federated Prime Value Obligations Money Market Fund...      6,205,327
                                                                   ------------
          Total Investment Companies............................      6,205,605
                                                                   ------------
Total Investments (Cost $401,577,656) (a) -- 100.0%..............   586,176,487
Other assets in excess of liabilities -- 0.0%....................         6,521
                                                                   ------------
Net Assets -- 100.0%.............................................  $586,183,008
                                                                   ============

-------                                                                         
(a)  Represents cost for financial reporting purposes and differs from cost     
  basis for Federal income tax purposes by the amount of losses recognized
for financial reporting in excess of Federal income tax reporting of  
  $303,601. Cost for Federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:                     

                                                                [Download Table]
                                                                             
Unrealized appreciation........................................ $221,778,298 
Unrealized depreciation........................................  (37,483,068)
                                                                ------------ 
Net unrealized appreciation.................................... $184,295,230 
                                                                ============ 

(b)  Non-income producing security.                                             
*  Part of this security has been deposited as initial margin on open futures   
contracts.                                                                
**  Investment in affiliate.                                                    
ADR -- American Depositary Receipt                                              
At July 31, 2001, the Fund's open long future contracts were as follows:        

                                                                [Download Table]

                                           Unrealized             
  # of          Opening        Notional   Depreciation    Market  
Contracts    Contract Type      Amount     on Futures     Value   
---------    -------------     --------   ------------    ------  
                                                                  
    19     Standard & Poor's  $5,823,065    $(50,390)   $5,772,675
             500, 9/20/01                                         

See Notes to Financial Statements.

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (99.1%):                                                         

        Advertising (0.3%):                                                    
 29,100 Interpublic Group Cos., Inc. ...........................   $    796,467
 14,400 Omnicom Group...........................................      1,258,128
  8,300 TMP Worldwide, Inc. (b).................................        415,332
                                                                   ------------
                                                                      2,469,927
                                                                   ------------
        Aerospace & Defense (1.0%):                                            
 67,692 Boeing Co. .............................................      3,962,012
 15,600 General Dynamics Corp. .................................      1,261,884
 33,688 Lockheed Martin Corp. ..................................      1,334,719
  6,600 Northrop Grumman Corp. .................................        529,518
 27,600 Raytheon Co. (b)........................................        797,088
 14,200 Rockwell Collins (b)....................................        293,940
                                                                   ------------
                                                                      8,179,161
                                                                   ------------
        Apparel Manufacturers (0.0%):                                          
  8,700 V.F. Corp. .............................................        318,507
                                                                   ------------
        Appliances & Household Products (0.1%):                                
  6,000 Maytag Corp. ...........................................        201,180
  5,200 Whirlpool Corp. ........................................        366,808
                                                                   ------------
                                                                        567,988
                                                                   ------------
        Applications Software (3.6%):                                          
 14,300 Citrix Systems, Inc. (b)................................        478,621
 16,200 Intuit, Inc. (b)........................................        556,956
417,800 Microsoft Corp. (b).....................................     27,654,181
 20,926 Parametric Technology Corp. (b).........................        198,169
 35,200 Siebel Systems, Inc. (b)................................      1,212,992
                                                                   ------------
                                                                     30,100,919
                                                                   ------------
        Auto/Truck -- Original Equipment (0.3%):                               
  3,200 Cummins Engine, Inc. ...................................        130,272
 11,632 Dana Corp. .............................................        299,524
 43,484 Delphi Automotive Systems Corp. ........................        711,399
  5,400 Eaton Corp. ............................................        396,576
  4,620 Navistar International Corp. (b)........................        148,348
  5,950 PACCAR, Inc. ...........................................        350,098
  9,700 TRW, Inc. ..............................................        429,225
 10,062 Visteon Corp. ..........................................        212,610
                                                                   ------------
                                                                      2,678,052
                                                                   ------------
        Auto/Truck -- Replacement Equipment (0.1%):                            
 13,425 Genuine Parts Co. ......................................        441,951
                                                                   ------------
        Automotive (0.7%):                                                     
142,003 Ford Motor Co. .........................................      3,616,816
 42,600 General Motors Corp. ...................................      2,709,360
                                                                   ------------
                                                                      6,326,176
                                                                   ------------
        Banks -- Major Regional (4.1%):                                        
 90,511 Bank One Corp. .........................................      3,503,681
 13,850 Comerica, Inc. .........................................        853,022
 44,712 Fifth Third Bancorp**...................................      2,817,750
 76,170 First Union Corp. ......................................      2,696,418
 84,112 FleetBoston Financial Corp. ............................      3,155,882
 19,661 Huntington Bancshares...................................        359,993
COMMON STOCKS (continued)                                                      

        Banks -- Major Regional (continued)                                    
 33,000 KeyCorp.................................................   $    882,750
 37,000 Mellon Financial Corp. .................................      1,406,740
 46,600 National City Corp. ....................................      1,496,792
 17,300 Northern Trust Corp. ...................................      1,103,740
 22,400 PNC Bank Corp. .........................................      1,486,240
 25,300 State Street Corp. .....................................      1,360,381
 22,700 SunTrust Banks, Inc. ...................................      1,571,975
147,977 U.S. Bancorp............................................      3,512,974
 10,600 Union Planters Corp. ...................................        473,714
 16,300 Wachovia Corp. .........................................      1,158,930
133,200 Wells Fargo Co. ........................................      6,135,191
                                                                   ------------
                                                                     33,976,173
                                                                   ------------
        Banks -- Money Center (2.1%):                                          
124,392 Bank of America Corp. ..................................      7,913,819
 57,100 Bank of New York Co., Inc. .............................      2,561,506
 31,600 BB&T Corp. .............................................      1,166,356
153,554 J.P. Morgan Chase & Co. ................................      6,648,888
                                                                   ------------
                                                                     18,290,569
                                                                   ------------
        Banks -- South (0.1%):                                                 
 28,750 AmSouth Bancorporation..................................        571,550
 26,400 SouthTrust Corp. .......................................        677,688
                                                                   ------------
                                                                      1,249,238
                                                                   ------------
        Beverages -- Alcoholic (0.4%):                                         
  2,900 Adolph Coors Co. .......................................        145,841
 69,640 Anheuser-Busch Co., Inc. ...............................      3,016,108
  5,300 Brown-Forman Corp. .....................................        362,149
                                                                   ------------
                                                                      3,524,098
                                                                   ------------
        Beverages -- Soft Drinks (1.6%):                                       
193,100 Coca-Cola Co. ..........................................      8,612,260
113,700 PepsiCo, Inc. ..........................................      5,301,831
                                                                   ------------
                                                                     13,914,091
                                                                   ------------
        Broadcasting/Cable (0.6%):                                             
 45,600 Clear Channel Communications, Inc. (b)..................      2,672,160
 73,400 Comcast Corp., Special Class A (b)......................      2,791,402
                                                                   ------------
                                                                      5,463,562
                                                                   ------------
        Building & Construction -- Miscellaneous (0.1%):                       
 35,700 Masco Corp. ............................................        899,997
  7,800 Vulcan Materials Co. ...................................        382,590
                                                                   ------------
                                                                      1,282,587
                                                                   ------------
        Building -- Heavy Construction (0.0%):                                 
  6,200 Fluor Corp. ............................................        245,086
                                                                   ------------
        Building -- Maintenance & Services (0.0%):                             
 10,000 Ecolab, Inc. ...........................................        400,400
                                                                   ------------
        Building -- Residential/Commercial (0.1%):                             
  4,600 Centex Corp. ...........................................        216,384
  3,440 KB HOME.................................................        112,110
  3,300 Pulte Corp. ............................................        136,983
                                                                   ------------
                                                                        465,477
                                                                   ------------

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Building Products -- Retail/Wholesale (1.3%):                        
181,143 Home Depot, Inc. .....................................   $  9,124,173
 59,800 Lowe's Cos., Inc. ....................................      2,283,164
                                                                 ------------
                                                                   11,407,337
                                                                 ------------
        Building Products -- Wood (0.1%):                                    
  7,900 Louisiana-Pacific Corp. ..............................         83,898
 16,750 Weyerhaeuser Co. .....................................      1,000,478
                                                                 ------------
                                                                    1,084,376
                                                                 ------------
        Business Equipment & Services (0.4%):                                
 41,300 AES Corp. (b).........................................      1,581,790
 23,100 Office Depot, Inc. (b)................................        296,142
 28,950 Paychex, Inc. ........................................      1,137,735
                                                                 ------------
                                                                    3,015,667
                                                                 ------------
        Chemicals -- Diversified (0.9%):                                     
 69,654 Dow Chemical Co. .....................................      2,535,406
 80,920 E.I. du Pont de Nemours & Co. ........................      3,464,994
  8,300 Hercules, Inc. .......................................         87,980
 13,100 PPG Industries, Inc. .................................        719,845
 17,077 Rohm & Haas Co. ......................................        586,424
                                                                 ------------
                                                                    7,394,649
                                                                 ------------
        Chemicals -- Specialty (0.3%):                                       
 17,700 Air Products & Chemical, Inc. ........................        722,691
  6,000 Eastman Chemical Co. .................................        263,280
 10,037 Engelhard Corp. ......................................        261,464
  3,900 Great Lakes Chemical Corp. ...........................        110,721
 12,500 Praxair, Inc. ........................................        566,750
  6,000 Sigma-Aldrich Corp. ..................................        259,740
                                                                 ------------
                                                                    2,184,646
                                                                 ------------
        Circuits (0.2%):                                                     
 14,800 Jabil Circuit, Inc. (b)...............................        481,000
 25,500 Maxim Integrated Products, Inc. (b)...................      1,177,335
                                                                 ------------
                                                                    1,658,335
                                                                 ------------
        Commercial Services (0.2%):                                          
 66,119 Cendant Corp. (b).....................................      1,345,522
 13,300 Convergys Corp. (b)...................................        414,295
  9,100 Quintiles Transnational Corp. (b).....................        169,351
                                                                 ------------
                                                                    1,929,168
                                                                 ------------
        Commercial Services -- Finance (0.2%):                               
 18,700 Concord EFS, Inc. (b).................................      1,073,006
  7,100 H & R Block, Inc. ....................................        506,727
 12,265 Moody's Corp. ........................................        407,934
                                                                 ------------
                                                                    1,987,667
                                                                 ------------
        Computer Software (1.3%):                                            
 18,600 Adobe Systems, Inc. ..................................        697,314
  4,300 Autodesk, Inc. .......................................        160,347
 20,700 BroadVision, Inc. (b).................................         70,794
 44,718 Computer Associates International, Inc. ..............      1,541,877
 28,500 Compuware Corp. (b)...................................        390,450
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Computer Software (continued)                                          
  6,400 Mercury Interactive Corp. (b)...........................   $    247,424
435,848 Oracle Corp. (b)........................................      7,880,131
                                                                   ------------
                                                                     10,988,337
                                                                   ------------
        Computers (3.3%):                                                      
201,900 Dell Computer Corp. (b).................................      5,437,167
 25,100 Gateway, Inc. (b).......................................        263,299
150,800 Hewlett-Packard Co. ....................................      3,718,728
134,850 IBM Corp. ..............................................     14,187,569
252,800 Sun Microsystems, Inc. (b)..............................      4,118,112
                                                                   ------------
                                                                     27,724,875
                                                                   ------------
        Computers -- Integrated Systems (0.0%):                                
  7,500 NCR Corp. (b)...........................................        295,200
                                                                   ------------
        Computers -- Local Area Network (0.0%):                                
 25,200 Novell, Inc. (b)........................................        125,748
                                                                   ------------
        Computers -- Mainframe (0.0%):                                         
 24,400 Unisys Corp. (b)........................................        279,380
                                                                   ------------
        Computers -- Memory Devices (0.5%):                                    
171,300 EMC Corp. (b)...........................................      3,378,036
 30,900 VERITAS Software Corp. (b)..............................      1,310,469
                                                                   ------------
                                                                      4,688,505
                                                                   ------------
        Computers -- Micro (0.3%):                                             
 27,100 Apple Computer, Inc. (b)................................        509,209
131,124 Compaq Computer Corp. ..................................      1,958,993
                                                                   ------------
                                                                      2,468,202
                                                                   ------------
        Computers -- Networking Products (1.3%):                               
 14,700 Cabletron Systems, Inc. (b).............................        272,979
568,200 Cisco Systems, Inc. (b).................................     10,920,804
 25,100 Network Appliance, Inc. (b).............................        313,248
                                                                   ------------
                                                                     11,507,031
                                                                   ------------
        Computers -- Services (0.7%):                                          
 18,900 BMC Software, Inc. (b)..................................        378,000
 13,100 Computer Sciences Corp. (b).............................        473,041
 36,300 Electronic Data Systems Corp. ..........................      2,317,755
 11,100 Equifax, Inc. ..........................................        262,626
 30,400 First Data Corp. .......................................      2,107,328
  9,300 Sapient Corp. (b).......................................         58,125
                                                                   ------------
                                                                      5,596,875
                                                                   ------------
        Consumer Durable (0.1%):                                               
 11,100 Danaher Corp. ..........................................        628,149
                                                                   ------------
        Consumer Non-Durable (0.1%):                                           
 32,500 Coca-Cola Enterprises, Inc. ............................        475,150
 11,200 The Pepsi Bottling Group, Inc. .........................        488,096
                                                                   ------------
                                                                        963,246
                                                                   ------------

Continued 

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(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Consumer Products (0.1%):                                            
 18,400 Clorox, Inc. .........................................   $    687,792
 11,900 Fortune Brands, Inc. .................................        435,778
                                                                 ------------
                                                                    1,123,570
                                                                 ------------
        Consumer Products -- Miscellaneous (0.0%):                           
  4,800 American Greetings Corp., Class A.....................         53,040
  4,500 Tupperware Corp. .....................................        105,660
                                                                 ------------
                                                                      158,700
                                                                 ------------
        Containers & Packaging (0.0%):                                       
  6,516 Sealed Air Corp. (b)..................................        268,459
                                                                 ------------
        Containers -- Metal & Glass (0.0%):                                  
  2,200 Ball Corp. ...........................................        108,746
                                                                 ------------
        Containers -- Paper & Plastic (0.0%):                                
  4,200 Bemis Co. ............................................        185,808
 12,300 Pactiv Corp. (b)......................................        191,019
                                                                 ------------
                                                                      376,827
                                                                 ------------
        Cosmetics & Toiletries (0.7%):                                       
  4,400 Alberto-Culver Co., Class B...........................        190,872
 18,400 Avon Products, Inc. ..................................        853,576
 81,864 Gillette Co. .........................................      2,281,550
  7,300 International Flavors & Fragrances, Inc. .............        212,649
 41,340 Kimberly-Clark Corp. .................................      2,513,885
                                                                 ------------
                                                                    6,052,532
                                                                 ------------
        Cruise Lines (0.2%):                                                 
 45,400 Carnival Corp. .......................................      1,516,360
                                                                 ------------
        Data Processing/Management (0.4%):                                   
 48,500 Automatic Data Processing, Inc. ......................      2,471,075
  9,700 Fiserv, Inc. (b)......................................        556,586
                                                                 ------------
                                                                    3,027,661
                                                                 ------------
        Diversified (5.0%):                                                  
  4,625 Crane Co. ............................................        141,294
  2,400 FMC Corp. (b).........................................        159,672
771,100 General Electric Co.*.................................     33,542,849
 22,830 IMS Health, Inc. .....................................        586,731
  6,800 ITT Industries, Inc. .................................        301,920
  6,700 Johnson Controls, Inc. ...............................        540,020
 30,700 Minnesota Mining & Manufacturing Co. .................      3,434,716
  3,200 National Service Industries, Inc. ....................         72,384
 10,900 Textron, Inc. ........................................        613,888
 36,500 United Technologies Corp. ............................      2,679,100
                                                                 ------------
                                                                   42,072,574
                                                                 ------------
        Diversified Manufacturing (1.2%):                                    
 62,812 Honeywell International, Inc. ........................      2,315,878
150,364 Tyco International, Ltd. .............................      7,999,365
                                                                 ------------
                                                                   10,315,243
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Electric -- Integrated (0.8%):                                         
  9,700 Allegheny Energy, Inc. .................................   $    418,264
 19,167 Dominion Resources, Inc. ...............................      1,159,412
 24,862 Exelon Corp. ...........................................      1,404,703
 26,374 Mirant Corp. (b)........................................        815,748
 16,053 NiSource, Inc. .........................................        423,157
 11,300 PPL Corp. ..............................................        508,274
 16,037 Progress Energy, Inc. ..................................        685,902
 19,970 TXU Corp. ..............................................        928,605
 26,685 Xcel Energy, Inc. ......................................        718,894
                                                                   ------------
                                                                      7,062,959
                                                                   ------------
        Electrical & Electronic (0.1%):                                        
 15,175 Molex, Inc. ............................................        522,020
                                                                   ------------
        Electrical Components -- Semiconductors (0.1%):                        
 19,200 Conexant Systems, Inc. (b)..............................        182,592
 13,500 National Semiconductor Corp. (b)........................        432,675
                                                                   ------------
                                                                        615,267
                                                                   ------------
        Electronic -- Connectors (0.0%):                                       
  4,400 Thomas & Betts Corp. ...................................         91,300
                                                                   ------------
        Electronic -- Miscellaneous Components (0.2%):                         
 24,700 Linear Technology Corp. ................................      1,076,426
 24,800 Sanmina Corp. (b).......................................        540,888
                                                                   ------------
                                                                      1,617,314
                                                                   ------------
        Electronic Components -- Semiconductors (4.0%):                        
 26,700 Advanced Micro Devices, Inc. (b)........................        487,542
 30,000 Altera Corp. (b)........................................        901,800
 27,900 Analog Devices, Inc. (b)................................      1,283,400
 63,100 Applied Materials, Inc. (b).............................      2,893,766
 23,300 Applied Micro Circuits Corp. (b)........................        399,362
 20,200 Broadcom Corp., Class A (b).............................        881,326
522,100 Intel Corp. ............................................     15,563,800
 14,400 KLA-Tencor Corp. (b)....................................        783,216
 28,100 LSI Logic Corp. (b).....................................        612,018
 46,300 Micron Technology, Inc. (b).............................      1,944,600
 11,100 Novellus Systems, Inc. (b)..............................        565,767
  7,200 QLogic Corp. (b)........................................        276,552
 14,200 Rockwell International Corp. ...........................        227,910
 13,500 Teradyne, Inc. (b)......................................        458,730
134,800 Texas Instruments, Inc. ................................      4,650,600
 14,200 Vitesse Semiconductor Corp. (b).........................        281,018
 25,800 Xilinx, Inc. (b)........................................      1,032,000
                                                                   ------------
                                                                     33,243,407
                                                                   ------------
        Electronic Components/Instruments (0.1%):                              
 50,700 Solectron Corp. (b).....................................        886,236
                                                                   ------------
        Electronic Measuring Equipment (0.0%):                                 
  7,400 Tektronix, Inc. (b).....................................        167,906
                                                                   ------------
        Electronic Measuring Instruments (0.1%):                               
 35,457 Agilent Technologies, Inc. (b)..........................      1,014,425
                                                                   ------------

Continued 

36

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(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Electronics (0.0%):                                                  
 15,000 American Power Conversion Corp. (b)...................   $    200,250
  6,000 Power-One, Inc. (b)...................................         93,000
                                                                 ------------
                                                                      293,250
                                                                 ------------
        Energy (0.0%):                                                       
 12,600 Niagara Mohawk Holdings, Inc. (b).....................        214,074
                                                                 ------------
        Enterprise Software (0.1%):                                          
 22,800 PeopleSoft, Inc. (b)..................................        995,676
                                                                 ------------
        Fiber Optics (0.1%):                                                 
 72,200 Corning, Inc. ........................................      1,130,652
                                                                 ------------
        Finance (0.7%):                                                      
  8,250 AMBAC Financial Group, Inc. ..........................        474,705
  8,187 Bear Stearns Cos., Inc. ..............................        476,074
 20,500 Franklin Resources, Inc. .............................        884,370
 17,700 Regions Financial Corp. ..............................        566,400
 68,153 Washington Mutual, Inc. ..............................      2,761,560
  7,100 Zions Bancorporation..................................        414,995
                                                                 ------------
                                                                    5,578,104
                                                                 ------------
        Financial -- Banking (0.1%):                                         
 22,500 Synovus Financial Corp. ..............................        768,375
                                                                 ------------
        Financial -- Consumer Loans (0.5%):                                  
 35,993 Household International, Inc. ........................      2,385,976
 22,200 Providian Financial Corp. ............................      1,096,014
 12,700 USA Education, Inc. ..................................      1,017,397
                                                                 ------------
                                                                    4,499,387
                                                                 ------------
        Financial -- Investment Banker/Broker (0.8%):                        
107,575 Charles Schwab Corp. .................................      1,612,549
 19,100 Lehman Brothers Holding, Inc. ........................      1,375,200
 65,200 Merrill Lynch & Co., Inc. ............................      3,536,448
 17,000 Stilwell Financial, Inc. .............................        504,220
                                                                 ------------
                                                                    7,028,417
                                                                 ------------
        Financial -- Miscellaneous Services (0.9%):                          
102,700 American Express Co. .................................      4,141,891
 16,200 Capital One Financial Corp. ..........................      1,041,174
 66,130 MBNA Corp. ...........................................      2,341,002
                                                                 ------------
                                                                    7,524,067
                                                                 ------------
        Financial -- Mortgage & Related Services (1.2%):                     
  9,200 Countrywide Credit Industries, Inc. ..................        398,452
 77,700 Fannie Mae............................................      6,468,525
 53,800 Freddie Mac...........................................      3,682,072
                                                                 ------------
                                                                   10,549,049
                                                                 ------------
        Financial -- Savings & Loan (0.1%):                                  
 12,300 Golden West Financial Corp. ..........................        795,195
                                                                 ------------
        Financial/Miscellaneous (0.1%):                                      
 23,900 John Hancock Financial Services, Inc. ................        956,478
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Financial Services -- Diversified (3.0%):                              
390,370 Citigroup, Inc. ........................................   $ 19,600,478
 86,432 Morgan Stanley Dean Witter & Co. .......................      5,170,362
                                                                   ------------
                                                                     24,770,840
                                                                   ------------
        Food -- Canned (0.2%):                                                 
 31,700 Campbell Soup Co. ......................................        867,312
 27,100 H.J. Heinz Co. .........................................      1,170,991
                                                                   ------------
                                                                      2,038,303
                                                                   ------------
        Food -- Confectionery (0.2%):                                          
 10,600 Hershey Foods Corp. ....................................        639,816
 17,500 Wm. Wrigley Jr. Co. ....................................        873,600
                                                                   ------------
                                                                      1,513,416
                                                                   ------------
        Food -- Diversified (1.0%):                                            
 41,650 ConAgra, Inc. ..........................................        895,059
 22,100 General Mills, Inc. ....................................        971,958
 31,500 Kellogg Co. ............................................        947,205
 10,300 Quaker Oats Co. ........................................        906,400
 24,040 Ralston Purina Group....................................        771,924
 61,033 Sara Lee Corp. .........................................      1,231,036
 44,335 Unilever NV.............................................      2,657,883
                                                                   ------------
                                                                      8,381,465
                                                                   ------------
        Food Items -- Wholesale (0.2%):                                        
 10,200 SUPERVALU, Inc. ........................................        213,894
 52,200 Sysco Corp. ............................................      1,401,048
                                                                   ------------
                                                                      1,614,942
                                                                   ------------
        Food Products (0.3%):                                                  
 48,925 Archer-Daniels-Midland Co. .............................        655,106
 39,200 Safeway, Inc. (b).......................................      1,731,072
                                                                   ------------
                                                                      2,386,178
                                                                   ------------
        Gas & Electric Utility (0.1%):                                         
 30,100 PG & E Corp. ...........................................        447,587
                                                                   ------------
        Gas -- Distribution (0.0%):                                            
 10,700 KeySpan Corp. ..........................................        327,848
                                                                   ------------
        Health Care (0.1%):                                                    
 22,127 McKesson HBOC, Inc. ....................................        917,164
                                                                   ------------
        Home Decoration Products (0.1%):                                       
 15,400 Leggett & Platt, Inc. ..................................        369,138
 20,680 Newell Rubbermaid, Inc. ................................        448,342
                                                                   ------------
                                                                        817,480
                                                                   ------------
        Hotels & Lodging (0.1%):                                               
 28,900 Hilton Hotels Corp. ....................................        349,979
 18,900 Marriott International, Inc., Class A...................        902,475
                                                                   ------------
                                                                      1,252,454
                                                                   ------------
        Hotels & Motels (0.1%):                                                
 15,400 Starwood Hotels & Resorts Worldwide, Inc. ..............        549,626
                                                                   ------------

Continued 

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(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Human Resources (0.0%):                                                
 13,600 Robert Half International, Inc. (b).....................   $    354,280
                                                                   ------------
        Identification Systems (0.0%):                                         
 17,550 Symbol Technologies, Inc. ..............................        217,796
                                                                   ------------
        Instruments -- Scientific (0.1%):                                      
 16,400 Applera Corp. -- Applied Biosystems Group...............        462,480
  3,700 Millipore Corp. ........................................        241,166
  7,800 PerkinElmer, Inc. ......................................        245,700
                                                                   ------------
                                                                        949,346
                                                                   ------------
        Insurance (0.2%):                                                      
 15,300 Loews Corp. ............................................        868,428
  5,700 Progressive Corp. ......................................        768,417
                                                                   ------------
                                                                      1,636,845
                                                                   ------------
        Insurance -- Accident & Health (0.1%):                                 
 20,300 Aon Corp. ..............................................        719,635
                                                                   ------------
        Insurance -- Brokers (0.3%):                                           
 21,350 Marsh & McLennan Cos., Inc. ............................      2,143,540
                                                                   ------------
        Insurance -- Financial Guarantee (0.1%):                               
 11,500 MBIA, Inc. .............................................        645,840
                                                                   ------------
        Insurance -- Life & Health (0.8%):                                     
 40,800 AFLAC, Inc. ............................................      1,206,864
 38,796 American General Corp. .................................      1,794,315
 11,600 CIGNA Corp. ............................................      1,163,596
 26,264 Conseco, Inc. ..........................................        383,454
 11,837 Jefferson-Pilot Corp. ..................................        562,376
 14,600 Lincoln National Corp. .................................        745,038
  9,700 Torchmark Corp. ........................................        402,647
 18,784 UNUM Corp. .............................................        535,908
                                                                   ------------
                                                                      6,794,198
                                                                   ------------
        Insurance -- Multi-Line (2.6%):                                        
 11,170 Aetna, Inc. (b).........................................        315,106
 56,198 Allstate Corp. .........................................      1,964,682
180,938 American International Group, Inc. .....................     15,063,088
 12,500 Cincinnati Financial Corp. .............................        492,500
 18,400 Hartford Financial Services Group, Inc. ................      1,218,264
 58,200 MetLife, Inc. ..........................................      1,725,630
  8,300 MGIC Investment Corp. ..................................        622,832
                                                                   ------------
                                                                     21,402,102
                                                                   ------------
        Insurance -- Property & Casualty (0.2%):                               
 13,600 Chubb Corp. ............................................        954,312
  9,900 Safeco Corp. ...........................................        314,028
 16,634 St. Paul Cos., Inc. ....................................        729,401
                                                                   ------------
                                                                      1,997,741
                                                                   ------------
        Internet Services/Software (0.1%):                                     
 44,000 Yahoo!, Inc. (b)........................................        775,280
                                                                   ------------
        Investment Management Companies (0.0%):                                
  9,600 T. Rowe Price Group, Inc. ..............................        364,416
                                                                   ------------
                                                                [Download Table]

Shares                  Security Description                      Value    
------                  --------------------                      -----    
                                                                           
COMMON STOCKS (continued)                                                  

        Leisure & Recreation Products (0.0%):                              
  6,700 Brunswick Corp. ....................................   $    146,328
                                                               ------------
        Leisure & Recreation/Gaming (0.0%):                                
  9,200 Harrah's Entertainment, Inc. (b)....................        263,304
                                                               ------------
        Linen Supply & Related (0.1%):                                     
 13,100 Cintas Corp. .......................................        657,227
                                                               ------------
        Machine Tools & Related Products (0.0%):                           
  6,300 The Black & Decker Corp. ...........................        269,073
                                                               ------------
        Machinery -- Construction/Mining (0.2%):                           
 26,600 Caterpillar, Inc. ..................................      1,465,660
 12,450 Ingersoll-Rand Co. .................................        543,816
                                                               ------------
                                                                  2,009,476
                                                               ------------
        Machinery -- Electrical (0.3%):                                    
 33,300 Emerson Electric Co. ...............................      1,910,088
  7,400 W.W. Grainger, Inc. ................................        311,540
                                                               ------------
                                                                  2,221,628
                                                               ------------
        Machinery -- Farm (0.1%):                                          
 18,200 Deere & Co. ........................................        763,490
                                                               ------------
        Machinery -- General Industrial (0.3%):                            
  7,300 Cooper Industries, Inc. ............................        303,023
 15,800 Dover Corp. ........................................        571,170
 23,600 Illinois Tool Works, Inc. ..........................      1,486,800
  9,125 Parker Hannifin Corp. ..............................        407,888
                                                               ------------
                                                                  2,768,881
                                                               ------------
        Machinery -- Thermal Processor (0.0%):                             
 14,100 Thermo Electron Corp. (b)...........................        321,480
                                                               ------------
        Media Conglomerates (3.2%):                                        
343,980 AOL Time Warner, Inc. (b)...........................     15,633,890
162,250 The Walt Disney Co. ................................      4,275,288
138,176 Viacom, Inc., Class B (b)...........................      6,881,165
                                                               ------------
                                                                 26,790,343
                                                               ------------
        Medical -- Biomedical/Genetic (0.7%):                              
 81,000 Amgen, Inc. (b).....................................      5,079,510
 11,500 Biogen, Inc. (b)....................................        651,935
 14,700 Chiron Corp. (b)....................................        630,630
                                                               ------------
                                                                  6,362,075
                                                               ------------
        Medical -- Drugs (8.6%):                                           
120,200 Abbott Laboratories.................................      6,441,518
102,000 American Home Products Corp. .......................      6,151,620
150,900 Bristol-Myers Squibb Co. ...........................      8,924,226
 87,300 Eli Lilly & Co. ....................................      6,921,144
 13,700 Forest Laboratories, Inc. (b).......................      1,076,135
 17,733 King Pharmaceuticals, Inc. (b)......................        801,532
 16,500 MedImmune, Inc. (b).................................        635,580
178,050 Merck & Co., Inc. ..................................     12,103,839
490,100 Pfizer, Inc. .......................................     20,201,921
101,012 Pharmacia Corp. ....................................      4,507,155

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

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Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Medical -- Drugs (continued)                                           
113,600 Schering-Plough Corp. ..................................   $  4,436,080
  8,200 Watson Pharmaceutical, Inc. (b).........................        539,970
                                                                   ------------
                                                                     72,740,720
                                                                   ------------
        Medical -- Health Medical Organization (0.3%):                         
 13,000 Humana, Inc. (b)........................................        144,950
 24,600 UnitedHealth Group, Inc. ...............................      1,658,532
  4,900 Wellpoint Health Networks (b)...........................        524,104
                                                                   ------------
                                                                      2,327,586
                                                                   ------------
        Medical -- Hospital (0.4%):                                            
 41,749 HCA-The Healthcare Co. .................................      1,918,367
 25,200 Tenet Healthcare Corp. (b)..............................      1,398,852
                                                                   ------------
                                                                      3,317,219
                                                                   ------------
        Medical -- Nursing Homes (0.0%):                                       
  8,100 Manor Care, Inc. (b)....................................        260,820
                                                                   ------------
        Medical -- Outpatient/Home Care (0.1%):                                
 30,300 HEALTHSOUTH Corp. (b)...................................        518,130
                                                                   ------------
        Medical -- Wholesale Drug Distribution (0.3%):                         
 34,600 Cardinal Health, Inc. ..................................      2,547,598
                                                                   ------------
        Medical Instruments (0.8%):                                            
 13,850 Biomet, Inc. ...........................................        672,418
 31,200 Boston Scientific Corp. (b).............................        561,912
 23,800 Guidant Corp. (b).......................................        758,744
 93,800 Medtronic, Inc..........................................      4,505,214
  6,700 St. Jude Medical, Inc. (b)..............................        469,000
                                                                   ------------
                                                                      6,967,288
                                                                   ------------
        Medical Products (1.9%):                                               
 46,000 Baxter International, Inc. .............................      2,290,800
235,132 Johnson & Johnson.......................................     12,720,641
 15,200 Stryker Corp. ..........................................        911,696
                                                                   ------------
                                                                     15,923,137
                                                                   ------------
        Medical/Dental Supplies (0.1%):                                        
  4,200 Bausch & Lomb, Inc. ....................................        143,808
 20,000 Becton, Dickinson & Co. ................................        691,200
  3,900 C.R. Bard, Inc. ........................................        230,685
                                                                   ------------
                                                                      1,065,693
                                                                   ------------
        Metal -- Gold (0.1%):                                                  
 30,800 Barrick Gold Corp. .....................................        458,612
 20,200 Homestake Mining Co. ...................................        157,560
 15,215 Newmont Mining Corp. ...................................        284,521
 25,700 Placer Dome, Inc. ......................................        258,285
                                                                   ------------
                                                                      1,158,978
                                                                   ------------
        Metal -- Non-Ferrous (0.1%):                                           
 24,750 Alcan Aluminum, Ltd. ...................................        928,373
 11,600 Freeport-McMoran Copper & Gold, Inc.,                                  
        Class B (b).............................................        124,816
                                                                   ------------
                                                                      1,053,189
                                                                   ------------
                                                                [Download Table]

Shares                  Security Description                      Value    
------                  --------------------                      -----    
                                                                           
COMMON STOCKS (continued)                                                  

        Metal -- Processing & Fabrication (0.0%):                          
  4,700 Timken Co. .........................................   $     78,349
  6,525 Worthington Industries, Inc. .......................         91,742
                                                               ------------
                                                                    170,091
                                                               ------------
        Metals (0.4%):                                                     
 66,976 Alcoa, Inc. ........................................      2,627,468
 14,300 Inco, Ltd. (b)......................................        239,668
  6,117 Phelps Dodge Corp. .................................        247,127
                                                               ------------
                                                                  3,114,263
                                                               ------------
        Motorcycle/Motor Scooter (0.1%):                                   
 23,500 Harley-Davidson, Inc. ..............................      1,212,835
                                                               ------------
        Networking Products (0.2%):                                        
264,437 Lucent Technologies, Inc. ..........................      1,771,728
                                                               ------------
        Non-Hazardous Waste Disposal (0.0%):                               
 15,400 Allied Waste Industries, Inc. (b)...................        290,136
                                                               ------------
        Office Automation & Equipment (0.1%):                              
 19,200 Pitney Bowes, Inc. .................................        771,840
 53,934 Xerox Corp. ........................................        430,393
                                                               ------------
                                                                  1,202,233
                                                               ------------
        Office Supplies & Forms (0.1%):                                    
  8,600 Avery Dennison Corp. ...............................        440,836
  5,600 Deluxe Corp. .......................................        176,624
                                                               ------------
                                                                    617,460
                                                               ------------
        Oil & Gas (0.5%):                                                  
 19,409 Anadarko Petroleum Corp. ...........................      1,102,431
  9,700 Apache Corp. .......................................        503,915
 48,486 Conoco, Inc., Class B...............................      1,503,066
 24,640 Transocean Sedco Forex, Inc. .......................        795,626
                                                               ------------
                                                                  3,905,038
                                                               ------------
        Oil & Gas -- Drilling (0.1%):                                      
 11,400 Nabors Industries, Inc. (b).........................        334,020
 10,400 Noble Drilling Corp. (b)............................        319,176
  7,400 Rowan Cos., Inc. (b)................................        142,376
                                                               ------------
                                                                    795,572
                                                               ------------
        Oil & Gas -- Exploration & Production (0.1%):                      
  9,000 EOG Resources, Inc. ................................        318,150
  7,373 Kerr-Mcgee Corp. ...................................        465,826
                                                               ------------
                                                                    783,976
                                                               ------------
        Oil -- Field Services (0.4%):                                      
 33,300 Halliburton Co. ....................................      1,165,833
 44,500 Schlumberger, Ltd. .................................      2,391,875
                                                               ------------
                                                                  3,557,708
                                                               ------------
        Oil -- International Integrated (4.7%):                            
 49,800 Chevron Corp. ......................................      4,551,222
536,740 Exxon Mobil Corp. ..................................     22,414,261

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Oil -- International Integrated (continued)                            
166,500 Royal Dutch Petroleum Co., ADR..........................   $  9,657,000
 42,800 Texaco, Inc. ...........................................      2,963,900
                                                                   ------------
                                                                     39,586,383
                                                                   ------------
        Oil -- Production/Pipeline (0.4%):                                     
 25,300 Dynegy, Inc. ...........................................      1,173,414
 57,900 Enron Corp. ............................................      2,625,765
                                                                   ------------
                                                                      3,799,179
                                                                   ------------
        Oil -- U.S. Exploration & Production (0.1%):                           
 16,465 Burlington Resources, Inc. .............................        712,111
 10,000 Devon Energy Corp. .....................................        542,100
                                                                   ------------
                                                                      1,254,211
                                                                   ------------
        Oil -- U.S. Integrated (0.4%):                                         
  6,900 Amerada Hess Corp. .....................................        533,232
 28,800 Occidental Petroleum Corp. .............................        796,032
 19,900 Phillips Petroleum Co. .................................      1,136,091
 18,900 Unocal Corp. ...........................................        676,242
 24,000 USX-Marathon Group......................................        712,080
                                                                   ------------
                                                                      3,853,677
                                                                   ------------
        Oil Field Machinery & Equipment (0.1%):                                
 26,080 Baker Hughes, Inc. .....................................        927,926
  4,800 McDermott International, Inc. ..........................         52,992
                                                                   ------------
                                                                        980,918
                                                                   ------------
        Oil Refining (0.1%):                                                   
  5,400 Ashland, Inc. ..........................................        212,598
  6,474 Sunoco, Inc. ...........................................        223,871
 12,000 Tosco Corp. ............................................        536,400
                                                                   ------------
                                                                        972,869
                                                                   ------------
        Optical Supplies (0.1%):                                               
 10,200 Allergan, Inc. .........................................        767,958
                                                                   ------------
        Paints & Related Products (0.0%):                                      
 12,200 Sherwin-Williams Co. ...................................        279,258
                                                                   ------------
        Paper & Related Products (0.4%):                                       
  4,508 Boise Cascade Corp. ....................................        163,190
 17,545 Georgia Pacific Corp. ..................................        642,147
 37,536 International Paper Co. ................................      1,533,721
  7,700 Mead Corp. .............................................        228,844
  3,900 Temple-Inland, Inc. ....................................        241,995
  7,750 Westvaco Corp. .........................................        208,475
  8,500 Williamette Industries, Inc. ...........................        422,450
                                                                   ------------
                                                                      3,440,822
                                                                   ------------
        Photography (0.1%):                                                    
 22,500 Eastman Kodak Co. ......................................        974,475
                                                                   ------------
        Pipelines (0.4%):                                                      
 39,495 El Paso Energy Corp. ...................................      2,043,866
  8,900 Kinder Morgan, Inc. ....................................        466,360
 37,600 The Williams Companies, Inc. ...........................      1,259,600
                                                                   ------------
                                                                      3,769,826
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Pollution Control (0.2%):                                              
  9,499 Pall Corp. .............................................   $    227,026
 48,542 Waste Management, Inc. .................................      1,504,802
                                                                   ------------
                                                                      1,731,828
                                                                   ------------
        Printers & Related Products (0.1%):                                    
 10,000 Lexmark International Group, Inc. (b)...................        457,200
                                                                   ------------
        Printing -- Commercial (0.0%):                                         
  9,100 R.R. Donnelley & Sons Co. ..............................        270,361
                                                                   ------------
        Publishing -- Books (0.1%):                                            
 15,200 McGraw-Hill Cos., Inc. .................................        932,824
                                                                   ------------
        Publishing -- Newspapers (0.4%):                                       
  6,700 Dow Jones & Co. ........................................        381,364
 20,500 Gannett, Inc. ..........................................      1,374,115
  5,700 Knight-Ridder, Inc. ....................................        351,063
 12,400 New York Times Co. .....................................        574,120
 23,150 Tribune Co. ............................................        955,169
                                                                   ------------
                                                                      3,635,831
                                                                   ------------
        Publishing -- Periodicals (0.0%):                                      
  3,900 Meredith Corp. .........................................        139,893
                                                                   ------------
        Restaurants (0.5%):                                                    
  9,300 Darden Restaurants, Inc. ...............................        278,070
100,400 McDonald's Corp. .......................................      2,925,656
 29,400 Starbucks Corp. (b).....................................        530,376
 11,410 Tricon Global Restaurants (b)...........................        522,008
  8,900 Wendy's International, Inc. ............................        238,609
                                                                   ------------
                                                                      4,494,719
                                                                   ------------
        Retail (0.5%):                                                         
 22,400 Bed Bath & Beyond, Inc. (b).............................        721,952
 16,300 Best Buy Co. (b)........................................      1,091,448
 25,633 Dollar General Corp. ...................................        503,176
 25,900 Kohl's Corp. (b)........................................      1,483,552
 35,500 Staples, Inc. (b).......................................        532,145
                                                                   ------------
                                                                      4,332,273
                                                                   ------------
        Retail -- Apparel/Shoes (0.4%):                                        
 66,737 Gap, Inc. ..............................................      1,822,588
 33,056 Limited, Inc. ..........................................        560,960
 10,400 Nordstrom, Inc. ........................................        234,000
 21,800 TJX Companies, Inc. ....................................        741,418
                                                                   ------------
                                                                      3,358,966
                                                                   ------------
        Retail -- Consumer Electronics (0.1%):                                 
 16,100 Circuit City Stores, Inc. ..............................        301,875
 14,356 RadioShack Corp. .......................................        405,270
                                                                   ------------
                                                                        707,145
                                                                   ------------
        Retail -- Discount (2.6%):                                             
  8,600 Big Lots, Inc. (b)......................................        112,918
 34,900 Costco Wholesale Corp. (b)..............................      1,502,445
 37,900 Kmart Corp. (b).........................................        438,503

Continued 

40

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

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Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      
        Retail -- Discount (continued)                                         

 15,350 Toys 'R' Us, Inc. (b)...................................   $    353,511
347,050 Wal-Mart Stores, Inc. ..................................     19,400,095
                                                                   ------------
                                                                     21,807,472
                                                                   ------------
        Retail -- Drug Store (0.4%):                                           
 30,500 CVS Corp. ..............................................      1,098,305
 79,000 Walgreen Co. ...........................................      2,662,300
                                                                   ------------
                                                                      3,760,605
                                                                   ------------
        Retail -- Food & Drug (0.2%):                                          
 62,900 Kroger Co. (b)..........................................      1,658,044
                                                                   ------------
        Retail -- Jewelry (0.0%):                                              
 11,400 Tiffany & Co. ..........................................        402,420
                                                                   ------------
        Retail -- Major Department Stores (0.6%):                              
 20,400 J.C. Penney, Inc. ......................................        580,176
 23,200 May Department Stores Co. ..............................        770,240
 25,475 Sears, Roebuck & Co. ...................................      1,196,816
 69,800 Target Corp. ...........................................      2,701,260
                                                                   ------------
                                                                      5,248,492
                                                                   ------------
        Retail -- Regional Department Stores (0.1%):                           
  6,800 Dillards Department Stores, Inc. .......................        100,912
 15,300 Federated Department Stores, Inc. (b)...................        590,580
                                                                   ------------
                                                                        691,492
                                                                   ------------
        Retail -- Supermarkets (0.1%):                                         
 31,397 Albertson's, Inc. ......................................      1,027,624
 10,900 Winn-Dixie Stores, Inc. ................................        250,046
                                                                   ------------
                                                                      1,277,670
                                                                   ------------
        Retail -- Wholesale -- Auto Parts (0.0%):                              
  8,800 AutoZone, Inc. (b)......................................        416,504
                                                                   ------------
        Rubber -- Tires (0.1%):                                                
  5,600 Cooper Tire & Rubber Co. ...............................         90,832
 12,300 Goodyear Tire & Rubber Co. .............................        351,534
  8,000 The B.F. Goodrich Co. ..................................        279,520
                                                                   ------------
                                                                        721,886
                                                                   ------------
        Savings and Loan Associations, Federally Chartered (0.1%):             
 16,080 Charter One Financial, Inc. ............................        516,329
                                                                   ------------
        Shoes & Related Apparel (0.1%):                                        
 21,100 Nike, Inc., Class B.....................................      1,003,305
  4,500 Reebok International Ltd. (b)...........................        144,045
                                                                   ------------
                                                                      1,147,350
                                                                   ------------
        Soap & Cleaning Preparations (1.1%):                                   
 43,600 Colgate-Palmolive Co. ..................................      2,363,120
100,500 Procter & Gamble Co.....................................      7,137,510
                                                                   ------------
                                                                      9,500,630
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Steel -- Producers (0.0%):                                             
  6,000 Nucor Corp. ............................................   $    287,340
  6,840 USX-U.S. Steel Group....................................        134,748
                                                                   ------------
                                                                        422,088
                                                                   ------------
        Telecommunications -- Equipment (1.0%):                                
 60,400 ADC Telecommunications, Inc. (b)........................        296,564
  6,260 Allegheny Technologies, Inc.............................        119,316
  6,255 Andrew Corp. (b)........................................        137,860
 13,300 Comverse Technology, Inc. (b)...........................        376,124
102,200 JDS Uniphase Corp. (b)..................................        944,328
247,400 Nortel Networks Corp., ADR..............................      1,966,830
 58,800 QUALCOMM, Inc. (b)......................................      3,717,924
 12,600 Scientific-Atlanta, Inc.................................        320,670
 31,700 Tellabs, Inc. (b).......................................        522,099
                                                                   ------------
                                                                      8,401,715
                                                                   ------------
        Telecommunications -- Services and                                     
        Equipment (0.9%):                                                      
195,995 AT&T Wireless Services, Inc. (b)........................      3,663,147
 21,894 Avaya, Inc. (b).........................................        274,332
 11,000 CenturyTel, Inc.........................................        340,560
 68,855 Global Crossing, Ltd. (b)...............................        451,000
 59,400 Nextel Communications, Inc., Class A (b)................        989,010
 72,700 Sprint Corp., PCS Group (b).............................      1,884,384
                                                                   ------------
                                                                      7,602,433
                                                                   ------------
        Telephone -- Integrated (2.8%):                                        
267,853 AT&T Corp. .............................................      5,413,309
 22,200 Citizens Communications Co. (b).........................        272,394
128,972 Qwest Communications International, Inc. ...............      3,353,272
209,978 Verizon Communications, Inc. ...........................     11,370,309
224,198 WorldCom, Inc. (b)......................................      3,138,772
                                                                   ------------
                                                                     23,548,056
                                                                   ------------
        Television (0.1%):                                                     
 16,200 Univision Communications, Inc. (b)......................        618,516
                                                                   ------------
        Textile -- Apparel (0.0%):                                             
  4,100 Liz Claiborne, Inc......................................        217,915
                                                                   ------------
        Tobacco (1.0%):                                                        
170,800 Philip Morris Cos., Inc.................................      7,771,400
 12,800 U.S.T., Inc.............................................        396,160
                                                                   ------------
                                                                      8,167,560
                                                                   ------------
        Tools -- Hand Held (0.0%):                                             
  4,550 Snap-On, Inc. ..........................................        122,850
  6,600 The Stanley Works.......................................        287,694
                                                                   ------------
                                                                        410,544
                                                                   ------------
        Toys/Game/Hobby (0.1%):                                                
 13,400 Hasbro, Inc.............................................        215,740
 33,447 Mattel, Inc. ...........................................        598,701
                                                                   ------------
                                                                        814,441
                                                                   ------------

Continued 

41

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     Index Equity Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Transportation -- Air Freight (0.1%):                                
 23,820 FDX Corp. (b).........................................   $    985,433
                                                                 ------------
        Transportation -- Airline (0.2%):                                    
 11,900 AMR Corp. (b).........................................        418,285
  9,600 Delta Air Lines, Inc. ................................        426,048
 59,105 Southwest Airlines Co. ...............................      1,182,691
  5,200 US Airways Group, Inc. (b)............................         88,296
                                                                 ------------
                                                                    2,115,320
                                                                 ------------
        Transportation -- Equipment & Leasing (0.0%):                        
  4,700 Ryder Systems, Inc. ..................................         89,300
                                                                 ------------
        Transportation -- Railroad (0.4%):                                   
 30,400 Burlington Northern Santa Fe Corp. ...................        812,896
 16,608 CSX Corp. ............................................        649,705
 29,900 Norfolk Southern Corp. ...............................        601,588
 19,200 Union Pacific Corp. ..................................      1,030,848
                                                                 ------------
                                                                    3,095,037
                                                                 ------------
        Travel Services (0.1%):                                              
 10,365 Sabre Holdings Corp. (b)..............................        509,543
                                                                 ------------
        Utilities (0.1%):                                                    
 10,300 CMS Energy Corp. .....................................        274,701
  6,600 Pinnacle West Capital Corp............................        279,048
                                                                 ------------
                                                                      553,749
                                                                 ------------
        Utilities -- Electric Power (1.4%):                                  
 10,700 Ameren Corp. .........................................        420,403
 25,060 American Electric Power Co. ..........................      1,127,700
 23,200 Calpine Corp. (b).....................................        834,968
 12,335 CINergy Corp. ........................................        381,152
 16,500 Consolidated Edison, Inc..............................        655,710
 12,700 Constellation Energy Group............................        373,888
 12,800 Detroit Edison Co. ...................................        540,800
 59,912 Duke Energy Corp. ....................................      2,313,202
 25,600 Edison International..................................        359,424
 17,100 Entergy Corp. ........................................        641,250
 17,400 First Energy Corp. ...................................        527,916
 13,700 Florida Power & Light, Inc. ..........................        739,800
  9,300 General Public Utilities Corp. .......................        337,032
 16,100 Public Service Enterprise Group, Inc. ................        753,480
 23,044 Reliant Energy, Inc...................................        725,886
 53,200 Southern Co...........................................      1,250,200
                                                                 ------------
                                                                   11,982,811
                                                                 ------------
        Utilities -- Gas Distribution (0.1%):                                
  3,600 NICOR, Inc............................................        133,668
  4,600 ONEOK, Inc............................................         83,720
  2,700 People's Energy Corp. ................................        102,762
 16,025 Sempra Energy.........................................        406,715
                                                                 ------------
                                                                      726,865
                                                                 ------------
        Utilities -- Telephone (2.4%):                                       
 24,300 ALLTEL Corp. .........................................      1,498,095
145,500 BellSouth Corp. ......................................      5,921,850
                                                                [Download Table]

 Shares                    Security Description                       Value    
 ------                    --------------------                       -----    
                                                                               
COMMON STOCKS (continued)                                                      
          Utilities -- Telephone (continued)                                   

  261,496 SBC Communications, Inc...............................   $ 11,775,165
   68,800 Sprint Corp. .........................................      1,605,792
                                                                   ------------
                                                                     20,800,902
                                                                   ------------
          Wireless Equipment (0.4%):                                           
  170,480 Motorola, Inc.........................................      3,186,271
   44,018 Palm, Inc. (b)........................................        236,377
                                                                   ------------
                                                                      3,422,648
                                                                   ------------
          Total Common Stocks...................................    848,662,996
                                                                   ------------
INVESTMENT COMPANIES (0.9%):                                                   
    1,996 Dreyfus Cash Management Money Market Fund.............          1,996
7,626,559 Federated Prime Value Obligations Money Market Fund...      7,626,559
                                                                   ------------
          Total Investment Companies............................      7,628,555
                                                                   ------------
Total Investments (Cost $535,883,692) (a) -- 100.0%..............   856,291,551
Other assets in excess of liabilities -- 0.0%....................       382,084
                                                                   ------------
Net Assets -- 100.0%.............................................  $856,673,635
                                                                   ============

-------                                                                         
(a) Represents cost for financial reporting purposes and differs from cost      
basis for Federal income tax purposes by the amount of losses recognized
for financial reporting in excess of Federal income tax reporting of    
   $10,353,843. Cost for Federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:                       

                                                                [Download Table]
                                                                             
Unrealized appreciation........................................ $365,510,545 
Unrealized depreciation........................................  (55,456,529)
                                                                ------------ 
Net unrealized appreciation.................................... $310,054,016 
                                                                ============ 

(b) Non-income producing security.                                              
* Part of this security has been deposited as initial margin on open futures    
contracts.                                                                  
** Investment in affiliate.                                                     
ADR -- American Depositary Receipt                                              
NV -- Naamloze Vennootschap (Dutch Corporation)                                 
At July 31, 2001, the Fund's open long future contracts were as follows:        

                                                                [Download Table]

                                           Unrealized             
  # of          Opening        Notional   Depreciation            
Contracts    Contract Type      Amount     on Futures     Value   
---------    -------------     --------   ------------    -----   
                                                                  
    27     Standard & Poor's  $8,224,120    $(20,845)   $8,203,275
             500, 9/20/01                                         

See Notes to Financial Statements.

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             Large Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (98.3%):                                                       

        Advertising (0.2%):                                                  
  6,200 Omnicom Group.........................................   $    541,694
                                                                 ------------
        Aerospace & Defense (0.5%):                                          
 20,300 Boeing Co. ...........................................      1,188,159
                                                                 ------------
        Applications Software (4.9%):                                        
179,500 Microsoft Corp. (b)...................................     11,881,105
 16,200 Siebel Systems, Inc. (b)..............................        558,252
                                                                 ------------
                                                                   12,439,357
                                                                 ------------
        Automotive (0.7%):                                                   
 42,600 Ford Motor Co. .......................................      1,085,022
 12,700 General Motors Corp. .................................        807,720
                                                                 ------------
                                                                    1,892,742
                                                                 ------------
        Banks -- Major Regional (2.9%):                                      
 27,100 Bank One Corp. .......................................      1,049,041
 22,800 First Union Corp. ....................................        807,120
 25,200 FleetBoston Financial Corp. ..........................        945,504
 11,000 Mellon Financial Corp. ...............................        418,220
  9,600 Northern Trust Corp. .................................        612,480
 13,400 State Street Corp. ...................................        720,518
 44,300 U.S. Bancorp..........................................      1,051,682
 39,900 Wells Fargo Co. ......................................      1,837,794
                                                                 ------------
                                                                    7,442,359
                                                                 ------------
        Banks -- Money Center (2.2%):                                        
 37,300 Bank of America Corp. ................................      2,373,026
 27,600 Bank of New York Co., Inc. ...........................      1,238,136
 46,100 J.P. Morgan Chase & Co. ..............................      1,996,130
                                                                 ------------
                                                                    5,607,292
                                                                 ------------
        Beverages -- Alcoholic (0.6%):                                       
 33,100 Anheuser-Busch Co., Inc. .............................      1,433,561
                                                                 ------------
        Beverages -- Soft Drinks (2.4%):                                     
 83,700 Coca-Cola Co. ........................................      3,733,020
 49,500 PepsiCo, Inc. ........................................      2,308,185
                                                                 ------------
                                                                    6,041,205
                                                                 ------------
        Broadcasting/Cable (0.6%):                                           
 13,600 Clear Channel Communications, Inc. (b)................        796,960
 21,900 Comcast Corp., Special Class A (b)....................        832,857
                                                                 ------------
                                                                    1,629,817
                                                                 ------------
        Building Products -- Retail/Wholesale (1.9%):                        
 80,700 Home Depot, Inc. .....................................      4,064,859
 19,400 Lowe's Cos., Inc. ....................................        740,692
                                                                 ------------
                                                                    4,805,551
                                                                 ------------
        Business Equipment & Services (0.2%):                                
 13,900 Paychex, Inc. ........................................        546,270
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Chemicals -- Diversified (0.7%):                                       
 20,800 Dow Chemical Co. .......................................   $    757,120
 24,200 E.I. du Pont de Nemours & Co. ..........................      1,036,244
                                                                   ------------
                                                                      1,793,364
                                                                   ------------
        Circuits (0.2%):                                                       
 11,100 Maxim Integrated Products, Inc. (b).....................        512,487
                                                                   ------------
        Commercial Services (0.1%):                                            
  7,000 Convergys Corp. (b).....................................        218,050
                                                                   ------------
        Commercial Services -- Finance (0.2%):                                 
  7,300 Concord EFS, Inc. (b)...................................        418,874
                                                                   ------------
        Computer Software (1.4%):                                              
 12,300 Adobe Systems, Inc. ....................................        461,127
179,600 Oracle Corp. (b)........................................      3,247,168
                                                                   ------------
                                                                      3,708,295
                                                                   ------------
        Computers (4.5%):                                                      
 87,100 Dell Computer Corp. (b).................................      2,345,603
 45,200 Hewlett-Packard Co. ....................................      1,114,632
 59,000 IBM Corp. ..............................................      6,207,390
116,500 Sun Microsystems, Inc. (b)..............................      1,897,785
                                                                   ------------
                                                                     11,565,410
                                                                   ------------
        Computers -- Memory Devices (0.8%):                                    
 80,600 EMC Corp. (b)...........................................      1,589,432
 13,700 VERITAS Software Corp. (b)..............................        581,017
                                                                   ------------
                                                                      2,170,449
                                                                   ------------
        Computers -- Micro (0.2%):                                             
 39,200 Compaq Computer Corp. ..................................        585,648
                                                                   ------------
        Computers -- Networking Products (1.8%):                               
244,900 Cisco Systems, Inc. (b).................................      4,706,978
                                                                   ------------
        Computers -- Services (0.5%):                                          
 10,900 Electronic Data Systems Corp. ..........................        695,965
  9,100 First Data Corp. .......................................        630,812
                                                                   ------------
                                                                      1,326,777
                                                                   ------------
        Cosmetics & Toiletries (1.0%):                                         
  8,000 Avon Products, Inc. ....................................        371,120
 36,100 Gillette Co. ...........................................      1,006,107
 18,000 Kimberly-Clark Corp. ...................................      1,094,580
                                                                   ------------
                                                                      2,471,807
                                                                   ------------
        Data Processing/Management (0.5%):                                     
 24,600 Automatic Data Processing, Inc. ........................      1,253,370
                                                                   ------------
        Diversified (6.4%):                                                    
315,200 General Electric Co.*...................................     13,711,200
 13,400 IMS Health, Inc. .......................................        344,380
 11,100 Minnesota Mining & Manufacturing Co. ...................      1,241,868
 12,400 United Technologies Corp. ..............................        910,160
                                                                   ------------
                                                                     16,207,608
                                                                   ------------

Continued 

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             Large Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Diversified Manufacturing (1.6%):                                    
 25,900 Honeywell International, Inc. ........................   $    954,933
 58,000 Tyco International, Ltd. .............................      3,085,600
                                                                 ------------
                                                                    4,040,533
                                                                 ------------
        Electric -- Integrated (0.2%):                                       
  7,400 Exelon Corp. .........................................        418,100
                                                                 ------------
        Electronic -- Miscellaneous Components (0.2%):                       
 10,700 Linear Technology Corp. ..............................        466,306
                                                                 ------------
        Electronic Components -- Semiconductors (4.4%):                      
 14,400 Altera Corp. (b)......................................        432,864
 15,300 Analog Devices, Inc. (b)..............................        703,800
 18,900 Applied Materials, Inc. (b)...........................        866,754
226,500 Intel Corp............................................      6,751,965
  4,300 KLA-Tencor Corp. (b)..................................        233,877
 13,800 Micron Technology, Inc. (b)...........................        579,600
 40,300 Texas Instruments, Inc................................      1,390,350
 10,400 Xilinx, Inc. (b)......................................        416,000
                                                                 ------------
                                                                   11,375,210
                                                                 ------------
        Enterprise Software (0.1%):                                          
  6,800 PeopleSoft, Inc. (b)..................................        296,956
                                                                 ------------
        Finance (0.3%):                                                      
 20,500 Washington Mutual, Inc................................        830,660
                                                                 ------------
        Financial -- Consumer Loans (0.7%):                                  
 10,800 Household International, Inc..........................        715,932
 11,300 Providian Financial Corp..............................        557,881
  5,800 USA Education, Inc....................................        464,638
                                                                 ------------
                                                                    1,738,451
                                                                 ------------
        Financial -- Investment Banker/Broker (0.7%):                        
 46,500 Charles Schwab Corp...................................        697,035
 19,600 Merrill Lynch & Co., Inc..............................      1,063,104
                                                                 ------------
                                                                    1,760,139
                                                                 ------------
        Financial -- Miscellaneous Services (1.2%):                          
 44,800 American Express Co...................................      1,806,784
  6,900 Capital One Financial Corp............................        443,463
 19,800 MBNA Corp.............................................        700,920
                                                                 ------------
                                                                    2,951,167
                                                                 ------------
        Financial -- Mortgage & Related Services (1.4%):                     
 30,600 Fannie Mae............................................      2,547,450
 16,100 Freddie Mac...........................................      1,101,884
                                                                 ------------
                                                                    3,649,334
                                                                 ------------
        Financial Services -- Diversified (2.9%):                            
116,900 Citigroup, Inc........................................      5,869,549
 25,900 Morgan Stanley Dean Witter & Co.......................      1,549,338
                                                                 ------------
                                                                    7,418,887
                                                                 ------------
        Food -- Canned (0.2%):                                               
 10,100 H.J. Heinz Co.........................................        436,421
                                                                 ------------
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             
COMMON STOCKS (continued)                                                    

        Food -- Confectionery (0.1%):                                        
  7,600 Wm. Wrigley Jr. Co....................................   $    379,392
                                                                 ------------
        Food -- Diversified (1.0%):                                          
 11,100 General Mills, Inc....................................        488,178
 13,600 Kellogg Co............................................        408,952
  6,600 Quaker Oats Co........................................        580,800
 16,300 Unilever NV...........................................        977,185
                                                                 ------------
                                                                    2,455,115
                                                                 ------------
        Food Items -- Wholesale (0.2%):                                      
 22,700 Sysco Corp............................................        609,268
                                                                 ------------
        Food Products (0.2%):                                                
 11,800 Safeway, Inc. (b).....................................        521,088
                                                                 ------------
        Insurance -- Brokers (0.4%):                                         
 10,600 Marsh & McLennan Cos., Inc............................      1,064,240
                                                                 ------------
        Insurance -- Multi-Line (2.4%):                                      
 16,800 Allstate Corp.........................................        587,328
 59,200 American International Group, Inc.....................      4,928,400
 17,800 MetLife, Inc. ........................................        527,770
                                                                 ------------
                                                                    6,043,498
                                                                 ------------
        Internet Services/Software (0.1%):                                   
 17,200 Yahoo!, Inc. (b)......................................        303,064
                                                                 ------------
        Machinery -- Electrical (0.2%):                                      
 10,000 Emerson Electric Co. .................................        573,600
                                                                 ------------
        Media Conglomerates (3.3%):                                          
112,400 AOL Time Warner, Inc. (b).............................      5,108,580
 48,600 The Walt Disney Co. ..................................      1,280,610
 41,400 Viacom, Inc., Class B (b).............................      2,061,720
                                                                 ------------
                                                                    8,450,910
                                                                 ------------
        Medical -- Biomedical/Genetic (1.0%):                                
 35,100 Amgen, Inc. (b).......................................      2,201,121
  5,900 Biogen, Inc. (b)......................................        334,471
                                                                 ------------
                                                                    2,535,592
                                                                 ------------
        Medical -- Drugs (12.5%):                                            
 52,100 Abbott Laboratories...................................      2,792,039
 45,000 American Home Products Corp. .........................      2,713,950
 65,800 Bristol-Myers Squibb Co. .............................      3,891,412
 37,700 Eli Lilly & Co. ......................................      2,988,856
  8,100 Forest Laboratories, Inc. (b).........................        636,255
  7,500 King Pharmaceuticals, Inc. (b)........................        339,000
 10,900 MedImmune, Inc. (b)...................................        419,868
 79,300 Merck & Co., Inc. ....................................      5,390,814
212,300 Pfizer, Inc. .........................................      8,751,006
 43,400 Pharmacia Corp. ......................................      1,936,508
 49,200 Schering-Plough Corp. ................................      1,921,260
                                                                 ------------
                                                                   31,780,968
                                                                 ------------
        Medical -- Health Medical Organization (0.3%):                       
 10,700 UnitedHealth Group, Inc. .............................        721,394
                                                                 ------------

Continued 

44

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             Large Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Medical -- Hospital (0.3%):                                            
 18,100 HCA-The Healthcare Co. .................................   $    831,695
                                                                   ------------
        Medical -- Wholesale Drug Distribution (0.4%):                         
 14,100 Cardinal Health, Inc. ..................................      1,038,183
                                                                   ------------
        Medical Instruments (1.1%):                                            
  8,800 Biomet, Inc. ...........................................        427,240
 10,300 Guidant Corp. (b).......................................        328,364
 43,600 Medtronic, Inc. ........................................      2,094,108
                                                                   ------------
                                                                      2,849,712
                                                                   ------------
        Medical Products (2.7%):                                               
 20,000 Baxter International, Inc. .............................        996,000
101,338 Johnson & Johnson.......................................      5,482,386
  6,600 Stryker Corp. ..........................................        395,868
                                                                   ------------
                                                                      6,874,254
                                                                   ------------
        Metals (0.3%):                                                         
 20,100 Alcoa, Inc. ............................................        788,523
                                                                   ------------
        Motorcycle/Motor Scooter (0.3%):                                       
 13,000 Harley-Davidson, Inc. ..................................        670,930
                                                                   ------------
        Office Supplies & Forms (0.1%):                                        
  4,100 Avery Dennison Corp. ...................................        210,166
                                                                   ------------
        Oil -- Field Services (0.4%):                                          
 10,000 Halliburton Co. ........................................        350,100
 13,300 Schlumberger, Ltd. .....................................        714,875
                                                                   ------------
                                                                      1,064,975
                                                                   ------------
        Oil -- International Integrated (4.6%):                                
 14,900 Chevron Corp. ..........................................      1,361,711
160,500 Exxon Mobil Corp. ......................................      6,702,480
 49,900 Royal Dutch Petroleum Co., ADR..........................      2,894,200
 11,100 Texaco, Inc. ...........................................        768,675
                                                                   ------------
                                                                     11,727,066
                                                                   ------------
        Oil -- Production/Pipeline (0.4%):                                     
  7,500 Dynegy, Inc. ...........................................        347,850
 17,400 Enron Corp. ............................................        789,090
                                                                   ------------
                                                                      1,136,940
                                                                   ------------
        Optical Supplies (0.1%):                                               
  4,400 Allergan, Inc. .........................................        331,276
                                                                   ------------
        Pipelines (0.2%):                                                      
 11,900 El Paso Energy Corp. ...................................        615,825
                                                                   ------------
        Publishing -- Books (0.1%):                                            
  5,200 McGraw-Hill Cos., Inc. .................................        319,124
                                                                   ------------
        Restaurants (0.4%):                                                    
 30,000 McDonald's Corp. .......................................        874,200
 12,600 Starbucks Corp. (b).....................................        227,304
                                                                   ------------
                                                                      1,101,504
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Retail (0.5%):                                                         
 10,900 Bed Bath & Beyond, Inc. (b).............................   $    351,307
  5,800 Best Buy Co. (b)........................................        388,368
 11,200 Kohl's Corp. (b)........................................        641,536
                                                                   ------------
                                                                      1,381,211
                                                                   ------------
        Retail -- Apparel/Shoes (0.4%):                                        
  7,651 Coach, Inc. (b).........................................        288,978
 24,600 Gap, Inc. ..............................................        671,826
                                                                   ------------
                                                                        960,804
                                                                   ------------
        Retail -- Consumer Electronics (0.1%):                                 
  9,500 RadioShack Corp. .......................................        268,185
                                                                   ------------
        Retail -- Discount (3.3%):                                             
150,300 Wal-Mart Stores, Inc. ..................................      8,401,770
                                                                   ------------
        Retail -- Drug Store (0.6%):                                           
 13,200 CVS Corp. ..............................................        475,332
 34,200 Walgreen Co. ...........................................      1,152,540
                                                                   ------------
                                                                      1,627,872
                                                                   ------------
        Retail -- Food & Drug (0.3%):                                          
 27,600 Kroger Co. (b)..........................................        727,536
                                                                   ------------
        Retail -- Major Department Stores (0.4%):                              
 24,900 Target Corp. ...........................................        963,630
                                                                   ------------
        Soap & Cleaning Preparations (1.5%):                                   
 20,400 Colgate-Palmolive Co. ..................................      1,105,680
 37,400 Procter & Gamble Co. ...................................      2,656,148
                                                                   ------------
                                                                      3,761,828
                                                                   ------------
        Telecommunications -- Equipment (0.9%):                                
  6,400 Comverse Technology, Inc. (b)...........................        180,992
 56,500 Nortel Networks Corp., ADR..............................        449,175
 25,400 QUALCOMM, Inc. (b)......................................      1,606,042
                                                                   ------------
                                                                      2,236,209
                                                                   ------------
        Telecommunications-Services and Equipment (0.5%):                      
 25,830 AT&T Wireless Services, Inc. (b)........................        482,763
 31,300 Sprint Corp., PCS Group (b).............................        811,296
                                                                   ------------
                                                                      1,294,059
                                                                   ------------
        Telephone -- Integrated (2.7%):                                        
 80,200 AT&T Corp. .............................................      1,620,842
 38,600 Qwest Communications International, Inc. ...............      1,003,600
 62,800 Verizon Communications, Inc. ...........................      3,400,620
 67,200 WorldCom, Inc. (b)......................................        940,800
                                                                   ------------
                                                                      6,965,862
                                                                   ------------
        Television (0.1%):                                                     
  6,900 Univision Communications, Inc. (b)......................        263,442
                                                                   ------------

Continued 

45

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             Large Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               
COMMON STOCKS (continued)                                                      

        Tobacco (1.2%):                                                        
 65,800 Philip Morris Cos., Inc.................................   $  2,993,900
                                                                   ------------
        Utilities -- Electric Power (0.4%):                                    
 26,100 Duke Energy Corp........................................      1,007,721
                                                                   ------------
        Utilities -- Telephone (2.6%):                                         
  5,400 ALLTEL Corp.............................................        332,910
 43,600 BellSouth Corp..........................................      1,774,520
103,400 SBC Communications, Inc.................................      4,656,102
                                                                   ------------
                                                                      6,763,532
                                                                   ------------
        Wireless Equipment (0.4%):                                             
 51,100 Motorola, Inc...........................................        955,059
                                                                   ------------
        Total Common Stocks.....................................    251,460,210
                                                                   ------------
INVESTMENT COMPANIES (0.1%):                                                   
    481 Dreyfus Cash Management Money Market Fund...............            481
289,656 Federated Prime Value Obligations Money Market Fund.....        289,655
                                                                   ------------
        Total Investment Companies..............................        290,136
                                                                   ------------
Total Investments (Cost $273,135,168) (a) -- 98.4%...............   251,750,346
Other assets in excess of liabilities -- 1.6%....................     4,111,921
                                                                   ------------
Net Assets -- 100.0%.............................................  $255,862,267
                                                                   ============

-------                                                                         
(a)  Represents cost for financial reporting purposes and differs from cost     
  basis for Federal income tax purposes by the amount of losses recognized
for financial reporting in excess of Federal income tax reporting of  
  $360,478. Cost for Federal income tax purposes differs from value by net
unrealized depreciation of securities as follows:                     

                                                                [Download Table]
                                                                            
Unrealized appreciation....................................... $ 15,579,951 
Unrealized depreciation.......................................  (37,325,251)
                                                               ------------ 
Net unrealized depreciation................................... $(21,745,300)
                                                               ============ 

(b)  Non-income producing security.                                             
*  Part of this security has been deposited as initial margin on open futures   
contracts.                                                                
ADR -- American Depositary Receipt                                              
NV -- Naamloze Vennootschap (Dutch Corporation)                                 
At July 31, 2001 the Fund's open long futures contracts were as follows:        

                                                                [Download Table]

                                           Unrealized             
  # of          Opening        Notional   Depreciation    Market  
Contracts    Contract Type      Amount     on Futures     Value   
---------    -------------     --------   ------------    ------  
                                                                  
     8     Standard & Poor's  $2,439,080    $(8,480)    $2,430,600
              500, 9/20/01                                        

See Notes to Financial Statements.

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (97.2%):                                                         
        Advertising (0.6%):                                                    
105,000 Catalina Market Corp. (b)...............................   $  3,608,850
 80,000 Penton Media, Inc. .....................................      1,116,000
                                                                   ------------
                                                                      4,724,850
                                                                   ------------
        Aerospace & Defense (1.6%):                                            
 60,000 Alliant Techsystems, Inc. (b)...........................      5,952,000
100,000 Newport News Shipbuilding...............................      6,345,000
                                                                   ------------
                                                                     12,297,000
                                                                   ------------
        Aerospace/Defense Equipment (0.1%):                                    
 50,000 AAR Corp. ..............................................        826,000
                                                                   ------------
        Apparel (0.1%):                                                        
 30,000 Quiksilver, Inc. (b)....................................        631,500
                                                                   ------------
        Appliances & Household Products (0.1%):                                
 55,600 Salton, Inc. (b)........................................      1,009,696
                                                                   ------------
        Applications Software (0.1%):                                          
 50,000 MRO Software, Inc. (b)..................................        719,500
                                                                   ------------
        Audio/Video Production (0.5%):                                         
100,000 Harman International Industries, Inc. ..................      3,700,000
                                                                   ------------
        Auto/Truck -- Original Equipment (0.1%):                               
 75,000 Tower Automotive, Inc. (b)..............................      1,100,250
                                                                   ------------
        Banks -- Central U.S. (1.6%):                                          
170,000 Community First Bankshares, Inc. .......................      4,182,000
100,000 MAF Bancorp, Inc. ......................................      3,084,000
185,000 Republic Bancorp, Inc. .................................      2,887,850
 80,000 Sterling Bancshares, Inc. ..............................      1,604,800
                                                                   ------------
                                                                     11,758,650
                                                                   ------------
        Banks -- East (1.4%):                                                  
100,000 Banknorth Group, Inc. ..................................      2,296,000
 27,000 Community Bank System, Inc. ............................        712,800
100,000 Hudson United Bancorp...................................      2,746,000
150,000 Roslyn Bancorp, Inc. ...................................      4,500,000
                                                                   ------------
                                                                     10,254,800
                                                                   ------------
        Banks -- Midwest (0.6%):                                               
100,000 First Midwest Bancorp, Inc. ............................      3,294,000
 35,000 Irwin Financial Corp. ..................................        859,250
                                                                   ------------
                                                                      4,153,250
                                                                   ------------
        Banks -- Northeast (1.2%):                                             
 80,000 Commerce Bancorp, Inc. .................................      6,096,000
158,400 First Commonwealth Financial Corp. .....................      2,090,880
 50,000 Independent Bank Corp. .................................        977,500
                                                                   ------------
                                                                      9,164,380
                                                                   ------------
        Banks -- South (0.4%):                                                 
100,000 Firstbank Corp. ........................................      2,905,000
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Banks -- Southeast (0.2%):                                             
 22,900 BancorpSouth, Inc. .....................................   $    368,690
 35,000 F & M National Corp. ...................................      1,404,200
                                                                   ------------
                                                                      1,772,890
                                                                   ------------
        Banks -- Southwest (0.7%):                                             
 75,000 Southwest Bank of Ft. Worth Texas (b)...................      2,521,500
 75,000 Texas Regional Bancshares, Inc. ........................      2,853,000
                                                                   ------------
                                                                      5,374,500
                                                                   ------------
        Banks -- West (1.6%):                                                  
 75,000 CVB Financial Corp. ....................................      1,422,750
 50,000 East West Bancorp, Inc. ................................      1,276,000
 52,500 First Republic Bancorp, Inc. (b)........................      1,372,875
150,000 Greater Bay Bancorp ....................................      3,964,500
185,000 Silicon Valley Bankshares (b)...........................      3,729,600
                                                                   ------------
                                                                     11,765,725
                                                                   ------------
        Batteries/Battery Systems (0.1%):                                      
 50,000 Rayovac Corp. (b).......................................      1,043,500
                                                                   ------------
        Building (0.1%):                                                       
 30,000 Centex Construction Products, Inc. .....................        990,000
                                                                   ------------
        Building & Construction -- Miscellaneous (0.7%):                       
100,000 Dal-Tile International, Inc. (b)........................      1,935,000
 75,000 Insituform Technologies, Inc. (b).......................      2,632,500
 30,000 Nortek, Inc. (b)........................................        798,600
                                                                   ------------
                                                                      5,366,100
                                                                   ------------
        Building -- Heavy Construction (0.8%):                                 
175,000 Dycom Industries, Inc. (b)..............................      3,830,750
 75,000 Granite Construction, Inc. .............................      1,827,000
                                                                   ------------
                                                                      5,657,750
                                                                   ------------
        Building -- Maintenance & Services (0.4%):                             
 75,000 ABM Industries, Inc. ...................................      2,741,250
                                                                   ------------
        Building -- Residential/Commercial (1.6%):                             
111,000 D. R. Horton, Inc. .....................................      3,058,050
 75,000 KB HOME.................................................      2,444,250
 30,000 Ryland Group, Inc. .....................................      1,874,700
 69,600 Standard-Pacific Corp. .................................      1,639,776
 75,000 Toll Brothers, Inc. (b).................................      2,962,500
                                                                   ------------
                                                                     11,979,276
                                                                   ------------
        Building Products -- Cement (0.2%):                                    
 40,000 Texas Industries, Inc. .................................      1,518,000
                                                                   ------------
        Business Services (0.4%):                                              
 75,000 ADVO, Inc. (b)..........................................      2,928,750
                                                                   ------------
        Cellular Telecom (0.4%):                                               
150,000 Price Communications Corp. (b)..........................      2,925,000
                                                                   ------------
        Chemicals -- Diversified (0.2%):                                       
 75,000 Olin Corp. .............................................      1,265,250
                                                                   ------------

Continued 

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Chemicals -- Plastic (0.2%):                                           
 50,000 Spartech Corp. .........................................   $  1,180,000
 50,000 Wellman, Inc. ..........................................        659,500
                                                                   ------------
                                                                      1,839,500
                                                                   ------------
        Chemicals -- Specialty (0.7%):                                         
 75,000 NL Industries, Inc. ....................................      1,136,250
 75,000 OM Group, Inc. .........................................      4,387,500
                                                                   ------------
                                                                      5,523,750
                                                                   ------------
        Circuits (0.5%):                                                       
 50,000 ACT Manufacturing, Inc. (b).............................        395,000
 65,000 Integrated Device Technology, Inc. (b)..................      2,395,250
 75,000 Pericom Semiconductor Corp. (b).........................      1,128,750
                                                                   ------------
                                                                      3,919,000
                                                                   ------------
        Commercial Services (0.4%):                                            
 65,000 Maximus, Inc. (b).......................................      2,882,100
                                                                   ------------
        Commercial Services -- Finance (0.3%):                                 
 85,000 NCO Group, Inc. (b).....................................      1,959,250
                                                                   ------------
        Computer Data Security (0.4%):                                         
116,000 RSA Security, Inc. (b)..................................      2,840,840
                                                                   ------------
        Computer Services (0.1%):                                              
 35,000 CheckFree Corp. (b).....................................      1,055,600
                                                                   ------------
        Computer Software (2.4%):                                              
 70,000 Documentum, Inc. (b)....................................      1,046,500
150,000 FileNET Corp. (b).......................................      1,914,000
 75,000 Hyperion Solutions Corp. (b)............................      1,061,250
 50,000 Mercury Interactive Corp. (b)...........................      1,933,000
 93,000 Micromuse, Inc. (b).....................................      1,420,110
100,000 MSC Software Corp. (b)..................................      2,051,000
 90,000 Peregrine Systems, Inc. (b).............................      2,461,500
104,600 Progress Software Corp. (b).............................      1,668,370
100,000 Rainbow Technologies, Inc. (b)..........................        515,000
150,000 Sybase, Inc. (b)........................................      2,232,000
102,100 Wind River Systems, Inc. (b)............................      1,462,072
                                                                   ------------
                                                                     17,764,802
                                                                   ------------
        Computers -- Equipment (0.3%):                                         
100,000 Insight Enterprises, Inc. (b)...........................      2,051,000
                                                                   ------------
        Computers -- Integrated Systems (1.6%):                                
 70,000 Avant! Corp. ...........................................        431,900
100,000 Cerner Corp. (b)........................................      5,634,000
 82,000 Echelon Corp. (b).......................................      1,982,760
 53,000 Mercury Computer Systems, Inc. (b)......................      1,677,450
 60,000 MICROS Systems, Inc. (b)................................      1,158,000
 75,000 Systems & Computer Technology Corp. (b).................        957,000
                                                                   ------------
                                                                     11,841,110
                                                                   ------------
        Computers -- Local Area Network (0.4%):                                
100,000 Anixter International, Inc. (b).........................      2,885,000
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Computers -- Memory Devices (0.2%):                                    
 70,000 SanDisk Corp. (b).......................................   $  1,654,800
                                                                   ------------
        Computers -- Peripheral Equipment (0.3%):                              
125,000 InFocus Corp. (b).......................................      2,057,500
100,000 SONICblue, Inc. ........................................        258,000
                                                                   ------------
                                                                      2,315,500
                                                                   ------------
        Computers -- Services (0.3%):                                          
 75,000 Factset Research Systems, Inc. .........................      2,486,250
                                                                   ------------
        Consumer Non-Durable (0.3%):                                           
137,000 Wolverine World Wide, Inc. .............................      2,479,700
                                                                   ------------
        Data Processing & Reproduction (1.3%):                                 
 50,000 American Management Systems, Inc. (b)...................        930,500
150,000 ChoicePoint, Inc. (b)...................................      6,124,500
 50,000 CSG Systems International, Inc. (b).....................      2,358,000
                                                                   ------------
                                                                      9,413,000
                                                                   ------------
        Data Processing/Management (0.1%):                                     
 50,000 Acxiom Corp. (b)........................................        584,500
                                                                   ------------
        Direct Marketing (0.2%):                                               
100,000 ValueVision International, Inc. -- Class A (b)..........      1,806,000
                                                                   ------------
        Distribution/Wholesale (0.2%):                                         
150,000 Bell Microproducts, Inc. (b)............................      1,275,000
                                                                   ------------
        Diversified (1.5%):                                                    
 50,000 Clarcor, Inc. ..........................................      1,300,000
150,000 Federal Signal Corp. ...................................      3,165,000
 60,800 Gencorp, Inc. ..........................................        812,288
 80,000 Imation Corp. (b).......................................      1,942,400
100,000 Manitowoc Co., Inc. ....................................      2,779,000
 50,000 Triarc Cos., Inc. (b)...................................      1,310,000
                                                                   ------------
                                                                     11,308,688
                                                                   ------------
        Drug Delivery Systems (0.3%):                                          
 59,300 Noven Pharmaceuticals, Inc. (b).........................      2,223,750
                                                                   ------------
        Electric -- Integrated (0.2%):                                         
 30,000 UIL Holdings Corp. .....................................      1,443,900
                                                                   ------------
        Electrical Components -- Semiconductors (2.1%):                        
200,000 Cypress Semiconductor Corp. (b).........................      5,456,000
150,000 General Semiconductor, Inc. (b).........................      1,689,000
140,000 International Rectifier Corp. (b).......................      5,227,600
125,000 LTX Corp. (b)...........................................      2,588,750
100,000 MEMC Electronic Materials, Inc. (b).....................        579,000
                                                                   ------------
                                                                     15,540,350
                                                                   ------------
        Electrical Equipment (0.5%):                                           
125,000 C&D Technologies, Inc. .................................      3,906,250
                                                                   ------------
        Electronic -- Manufacturing & Machinery (0.3%):                        
150,000 Kulicke and Soffa Industries, Inc. (b)..................      2,536,500
                                                                   ------------

Continued 

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Electronic -- Miscellaneous Components (1.9%):                         
125,000 APW Ltd. (b)............................................   $  1,125,000
 50,000 Audiovox Corp. (b)......................................        503,500
100,000 CTS Corp. ..............................................      2,205,000
 24,100 Littlefuse, Inc. (b)....................................        676,005
 65,000 Park Electrochemical Corp. .............................      1,602,250
 70,000 Photronics Corp. (b)....................................      1,463,000
161,000 Plexus Corp. (b)........................................      5,765,410
 50,000 RadiSys Corp. (b).......................................      1,017,000
                                                                   ------------
                                                                     14,357,165
                                                                   ------------
        Electronic Components -- Semiconductors (0.6%):                        
 40,000 Applied Micro Circuits Corp. (b)........................        685,600
 75,000 ATMI, Inc. (b)..........................................      1,908,000
 77,500 Caliper Technologies Corp. (b)..........................      1,274,875
 30,000 MKS Instruments, Inc. (b)...............................        767,700
                                                                   ------------
                                                                      4,636,175
                                                                   ------------
        Electronic Components/Instruments (1.6%):                              
125,000 Artesyn Technologies, Inc. (b)..........................      1,326,250
150,000 Cable Design Technologies, Corp. (b)....................      2,257,500
150,000 Lam Research Corp. (b)..................................      4,198,500
150,000 Methode Electronics, Inc. -- Class A....................      1,345,500
100,000 Technitrol, Inc. .......................................      2,482,000
                                                                   ------------
                                                                     11,609,750
                                                                   ------------
        Electronic Measuring Equipment (0.6%):                                 
200,000 Tektronix, Inc. (b).....................................      4,538,000
                                                                   ------------
        Electronic Measuring Instruments (0.2%):                               
 60,000 Orbotech, Ltd. (b)......................................      1,773,600
                                                                   ------------
        Electronic Parts -- Distribution (0.5%):                               
158,750 Avnet, Inc. ............................................      3,792,538
                                                                   ------------
        Electronic Products -- Miscellaneous (0.7%):                           
100,000 AMETEK, Inc. ...........................................      3,127,000
150,000 Kopin Corp. (b).........................................      2,338,500
                                                                   ------------
                                                                      5,465,500
                                                                   ------------
        Electronics -- Military (0.4%):                                        
 40,000 L-3 Communications Holdings, Inc. (b)...................      2,984,000
                                                                   ------------
        Engineering (0.5%):                                                    
 60,000 Jacobs Engineering Group, Inc. (b)......................      3,513,600
                                                                   ------------
        Entertainment (0.2%):                                                  
 75,000 Vail Resorts, Inc. (b)..................................      1,496,250
                                                                   ------------
        Fertilizers (0.2%):                                                    
 45,000 The Scotts Company (b)..................................      1,797,750
                                                                   ------------
        Fiber Optics (0.2%):                                                   
112,500 C-COR.net Corp. (b).....................................      1,297,125
                                                                   ------------
        Finance (0.8%):                                                        
175,000 Metris Companies, Inc. .................................      6,072,500
                                                                   ------------
                                                                [Download Table]

Shares                 Security Description                     Value    
------                 --------------------                     -----    
                                                                         

COMMON STOCKS (continued)                                                
        Financial -- Consumer Loans (1.0%):                              
125,000 AmeriCredit Corp. (b).............................   $  7,686,250
                                                             ------------
        Financial -- Investment Banker/Broker (1.2%):                    
100,000 Investment Technology Group, Inc. (b).............      5,249,000
 75,000 Jefferies Group, Inc. ............................      2,659,500
 55,000 Southwest Securities Group, Inc. .................        992,750
                                                             ------------
                                                                8,901,250
                                                             ------------
        Financial -- Investment Management Cos. (1.4%):                  
150,000 Allied Capital Corp. .............................      3,487,500
200,000 Eaton Vance Corp. ................................      6,828,000
                                                             ------------
                                                               10,315,500
                                                             ------------
        Financial -- Leasing Company (0.2%):                             
 50,000 Financial Federal Corp. (b).......................      1,324,500
                                                             ------------
        Financial -- Mortgage & Related Services (0.2%):                 
 40,000 Triad Guaranty, Inc. (b)..........................      1,516,000
                                                             ------------
        Financial -- Savings & Loan (1.8%):                              
100,000 Downey Financial Corp. ...........................      5,857,000
 85,000 FirstFed Financial Corp. (b)......................      2,622,250
125,000 Staten Island Bancorp, Inc. ......................      3,825,000
 50,000 Westcorp..........................................      1,016,000
                                                             ------------
                                                               13,320,250
                                                             ------------
        Food -- Diversified (0.5%):                                      
 70,000 Ralcorp Holding, Inc. (b).........................      1,232,000
 60,000 The Earthgrains Co. ..............................      2,411,400
                                                             ------------
                                                                3,643,400
                                                             ------------
        Food -- Flour & Grain (0.1%):                                    
 50,000 International Multi-Foods Corp. ..................      1,030,500
                                                             ------------
        Gas -- Distribution (0.3%):                                      
100,000 Vectren Corp. ....................................      2,040,000
                                                             ------------
        Health Care (0.7%):                                              
135,000 IDEXX Laboratories, Inc. (b)......................      3,295,350
 60,000 Patterson Dental Company (b)......................      2,082,000
                                                             ------------
                                                                5,377,350
                                                             ------------
        Hotels & Lodging (0.2%):                                         
100,000 Prime Hospitality Corp. (b).......................      1,201,000
                                                             ------------
        Human Resources (0.1%):                                          
 35,000 Korn/Ferry International (b)......................        539,350
                                                             ------------
        Industrial -- Automotive/Robotics (0.2%):                        
 65,000 Esterline Technologies Corp. (b)..................      1,391,000
                                                             ------------
        Instruments -- Controls (0.9%):                                  
 50,000 Photon Dynamics, Inc. (b).........................      1,945,000
125,000 Roper Industries, Inc. ...........................      4,731,250
                                                             ------------
                                                                6,676,250
                                                             ------------

Continued 

49

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Instruments -- Scientific (1.3%):                                    
 76,500 Dionex Corp. (b)......................................   $  2,233,800
230,000 PerkinElmer, Inc. ....................................      7,245,000
                                                                 ------------
                                                                    9,478,800
                                                                 ------------
        Insurance (0.6%):                                                    
100,000 StanCorp Financial Group, Inc. .......................      4,410,000
                                                                 ------------
        Insurance -- Accident & Health (0.1%):                               
 25,000 RLI Corp. ............................................      1,053,750
                                                                 ------------
        Insurance -- Brokers (1.3%):                                         
270,000 Arthur J. Gallagher & Co. ............................      7,425,000
 50,000 Hilb, Rogal & Hamilton Co. ...........................      2,287,500
                                                                 ------------
                                                                    9,712,500
                                                                 ------------
        Insurance -- Life (0.5%):                                            
 50,000 AmerUs Group Co. .....................................      1,612,500
 50,000 Delphi Financial Group................................      1,907,500
                                                                 ------------
                                                                    3,520,000
                                                                 ------------
        Insurance -- Multi-Line (0.2%):                                      
100,000 FBL Financial Group, Inc. -- Class A..................      1,860,000
                                                                 ------------
        Insurance -- Property & Casualty (0.8%):                             
 75,000 Fidelity National Financial, Inc. ....................      1,923,000
 75,000 First American Financial Corp. .......................      1,331,250
 50,000 Philadelphia Consolidated Holding                                    
        Corp. (b).............................................      1,806,000
 30,000 SCPIE Holdings, Inc. .................................        604,500
                                                                 ------------
                                                                    5,664,750
                                                                 ------------
        Internet Content (0.2%):                                             
 40,000 ProQuest Co. (b)......................................      1,241,600
                                                                 ------------
        Internet Services/Software (1.3%):                                   
125,000 Avocent Corp. (b).....................................      3,237,500
 66,000 Internet Security Systems, Inc. (b)...................      1,519,980
 75,000 Retek, Inc. (b).......................................      2,406,000
150,000 Verity, Inc. (b)......................................      2,634,000
                                                                 ------------
                                                                    9,797,480
                                                                 ------------
        Investment Companies (0.3%):                                         
 75,000 American Capital Strategies, Ltd. ....................      2,047,500
                                                                 ------------
        Lasers -- Systems/Components (1.7%):                                 
100,000 Coherent, Inc. (b)....................................      3,698,000
100,000 Cymer, Inc. (b).......................................      2,847,000
113,800 Electro Scientific Industries, Inc. (b)...............      3,658,670
175,000 VISX, Inc. (b)........................................      2,782,500
                                                                 ------------
                                                                   12,986,170
                                                                 ------------
        Leisure & Recreation Products (0.3%):                                
 50,000 Polaris Industries, Inc. .............................      2,444,000
                                                                 ------------
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Leisure & Recreation/Gaming (0.3%):                                  
100,000 Aztar Corp. (b).......................................   $  1,492,000
 75,000 Station Casinos, Inc. (b).............................      1,079,250
                                                                 ------------
                                                                    2,571,250
                                                                 ------------
        Machinery -- Electrical (0.2%):                                      
 44,000 Baldor Electric Co. ..................................        969,320
 13,100 Smith (A.O.) Corp. ...................................        229,643
                                                                 ------------
                                                                    1,198,963
                                                                 ------------
        Machinery -- General Industrial (0.7%):                              
 50,000 Albany International Corp. -- Class A (b).............        997,500
 75,000 Graco, Inc. ..........................................      2,535,000
 21,100 Idex Corp. ...........................................        683,007
100,000 Paxar Corp. (b).......................................      1,360,000
                                                                 ------------
                                                                    5,575,507
                                                                 ------------
        Management Consulting Services (0.1%):                               
100,000 DiamondCluster International, Inc. (b)................      1,028,000
                                                                 ------------
        Medical -- Biomedical/Genetic (2.8%):                                
 50,000 Affymetrix, Inc. (b)..................................      1,248,000
125,000 Alkermes, Inc. (b)....................................      3,562,500
100,000 Cell Genesys, Inc. (b)................................      1,685,000
100,000 CuraGen Corp. (b).....................................      2,267,000
 50,000 Digene Corp. (b)......................................      1,731,500
 40,000 IDEC Pharmaceuticals Corp. (b)........................      2,159,200
 50,000 Invitrogen Corp. (b)..................................      3,201,500
 80,000 Millennium Pharmaceuticals (b)........................      2,502,400
100,000 Nanogen, Inc. (b).....................................        613,000
 50,000 Transkaryotic Therapies, Inc. (b).....................      1,444,500
                                                                 ------------
                                                                   20,414,600
                                                                 ------------
        Medical -- Biotechnology (0.5%):                                     
 80,000 Bio-Technology General Corp. (b)......................        787,200
 65,000 Cryolife, Inc. (b)....................................      2,687,100
                                                                 ------------
                                                                    3,474,300
                                                                 ------------
        Medical -- Drugs (2.8%):                                             
100,000 Alpharma, Inc. -- Class A.............................      2,821,000
100,000 Celgene Corp. ........................................      2,618,000
100,000 Corixa Corp. (b)......................................      1,158,000
100,000 Guilford Pharmaceuticals, Inc. (b)....................      1,621,000
175,000 Ligand Pharmaceuticals, Inc. (b)......................      1,758,750
125,000 Medicis Pharmaceutical Corp. -- Class A (b)...........      6,025,000
110,000 Priority Healthcare Corp., Series B (b)...............      2,634,500
125,000 SuperGen, Inc. (b)....................................      1,518,750
                                                                 ------------
                                                                   20,155,000
                                                                 ------------
        Medical -- Health Medical Organization (1.0%):                       
175,000 Mid Atlantic Medical Services, Inc. (b)...............      3,675,000
 60,000 Trigon Healthcare, Inc. (b)...........................      4,108,800
                                                                 ------------
                                                                    7,783,800
                                                                 ------------
        Medical -- Hospital (0.7%):                                          
135,000 Province Healthcare Co. (b)...........................      4,927,500
                                                                 ------------

Continued 

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Medical -- Hospital Services (0.9%):                                   
100,000 Quest Diagnostics, Inc. (b).............................   $  6,910,000
                                                                   ------------

        Medical -- Outpatient/Home Care (1.1%):                                
125,000 Apria Healthcare Group, Inc. (b)........................      2,968,750
175,000 Orthodontic Centers of America, Inc. (b)................      5,215,000
                                                                   ------------
                                                                      8,183,750
                                                                   ------------

        Medical -- Wholesale Drug Distribution (0.4%):                         
 50,000 AmeriSource Health Corp. -- Class A (b).................      2,907,000
                                                                   ------------

        Medical Equipment & Supplies (0.7%):                                   
 30,000 Conmed Corp. (b)........................................        929,700
125,000 Respironics, Inc. (b)...................................      3,986,250
                                                                   ------------
                                                                      4,915,950
                                                                   ------------

        Medical Instruments (0.2%):                                            
 80,000 Kensey Nash Corp. (b)...................................      1,628,000
                                                                   ------------

        Medical Products (1.7%):                                               
100,000 Diagnostic Products Corp. ..............................      4,048,000
100,000 Haemonetics Corp. (b)...................................      3,351,000
125,000 Owens & Minor, Inc. ....................................      2,287,500
 50,000 PolyMedica, Corp. (b)...................................      1,762,500
 40,000 West Pharmaceutical Services, Inc. .....................      1,072,000
                                                                   ------------
                                                                     12,521,000
                                                                   ------------

        Medical Supplies (0.4%):                                               
125,000 STERIS Corp. (b)........................................      2,688,750
                                                                   ------------

        Medical/Dental Supplies (0.4%):                                        
 65,000 Cooper Cos., Inc. ......................................      3,139,500
                                                                   ------------

        Metal -- Miscellaneous (0.1%):                                         
 37,400 Brush Wellman, Inc. ....................................        635,800
                                                                   ------------

        Metal -- Processing & Fabrication (0.4%):                              
 85,000 Mueller Industries, Inc. (b)............................      2,843,250
                                                                   ------------

        Motion Pictures & Services (0.1%):                                     
100,000 Zomax, Inc. ............................................        562,000
                                                                   ------------

        Network Products (1.3%):                                               
250,000 Aeroflex, Inc. (b)......................................      2,612,500
 75,000 Black Box Corp. (b).....................................      4,114,500
100,000 Computer Network Technology Corp. (b)...................        831,000
230,000 Stratos Lightwave, Inc. (b).............................      2,187,300
                                                                   ------------
                                                                      9,745,300
                                                                   ------------

        Office Supplies & Forms (0.2%):                                        
 62,900 John H. Harland Co. ....................................      1,342,915
                                                                   ------------

        Oil & Gas -- Drilling (0.2%):                                          
 50,000 Atwood Oceanics, Inc. (b)...............................      1,645,000
                                                                   ------------

        Oil -- Field Services (1.3%):                                          
100,000 Hanover Compressor Co. (b)..............................      3,347,000
 75,000 Oceaneering International, Inc. (b).....................      1,575,000
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
        Oil -- Field Services (continued)                                      
 75,000 Seacor Holdings, Inc. (b)...............................   $  3,352,500
 75,000 Veritas DGC, Inc. (b)...................................      1,717,500
                                                                   ------------
                                                                      9,992,000
                                                                   ------------

        Oil -- U.S. Exploration & Production (3.5%):                           
 75,000 Cabot Oil & Gas Corp. ..................................      1,882,500
 50,000 Forest Oil Corp. (b)....................................      1,350,000
 30,000 Houston Exploration Co. (b).............................        998,100
 50,000 HS Resources, Inc. (b)..................................      3,205,000
 75,000 Louis Dreyfus Natural Gas (b)...........................      2,446,500
 75,000 Newfield Exploration Co. (b)............................      2,504,250
 75,000 Stone Energy Corp. (b)..................................      3,416,250
 75,000 Swift Energy Co. (b)....................................      2,342,250
175,000 Vintage Petroleum, Inc. ................................      3,246,250
262,500 XTO Energy, Inc. .......................................      3,945,374
                                                                   ------------
                                                                     25,336,474
                                                                   ------------

        Oil Refining (0.4%):                                                   
 50,000 Enterprise Products Partners L.P........................      2,137,500
 50,000 Tesoro Petroleum Corp. .................................        555,000
                                                                   ------------
                                                                      2,692,500
                                                                   ------------

        Pharmacy Services (1.3%):                                              
 75,000 AdvancePCS (b)..........................................      4,657,500
 75,000 Express Scripts, Inc. (b)...............................      4,376,250
 50,000 Pharmacopeia, Inc. (b)..................................        802,500
                                                                   ------------
                                                                      9,836,250
                                                                   ------------

        Physical Therapy (0.3%):                                               
 50,000 RehabCare Group, Inc. (b)...............................      2,197,500
                                                                   ------------

        Power Conversion/Supply Equipment (0.1%):                              
 30,000 Advanced Energy Industries, Inc. (b)....................        982,500
                                                                   ------------

        Real Estate (0.2%):                                                    
 50,000 Webb (Del) Corp. .......................................      1,854,000
                                                                   ------------

        Restaurants (1.7%):                                                    
112,500 Applebee's International, Inc. .........................      3,408,750
100,000 CEC Entertainment, Inc. (b).............................      3,569,000
100,000 Jack in the Box, Inc. (b)...............................      2,835,000
135,000 Ruby Tuesday, Inc. .....................................      2,511,000
                                                                   ------------
                                                                     12,323,750
                                                                   ------------

        Retail -- Apparel/Shoes (2.0%):                                        
 85,000 Ann Taylor Stores Corp. (b).............................      2,728,500
 40,000 Brown Shoe Company, Inc. ...............................        608,800
 75,000 Cole (Kenneth) Productions, Inc. (b)....................      1,481,250
 75,000 Footstar, Inc. (b)......................................      2,593,500
 75,000 Genesco, Inc. (b).......................................      2,441,250
 50,000 Hot Topic, Inc. (b).....................................      1,340,000
 80,000 Talbots, Inc. ..........................................      3,440,000
 20,000 The Children's Place Retail Stores, Inc. (b)............        501,000
                                                                   ------------
                                                                     15,134,300
                                                                   ------------

        Retail -- Consumer Electronics (0.1%):                                 
 73,900 Handleman Co. (b).......................................      1,108,500
                                                                   ------------


Continued 

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                  Security Description                      Value    
------                  --------------------                      -----    
                                                                           

COMMON STOCKS (continued)                                                  
        Retail -- Discount (0.3%):                                         
 60,000 99 Cents Only Stores (b)............................   $  1,994,400
                                                               ------------

        Retail -- General Merchandise (0.1%):                              
 35,000 Russ Berrie & Co., Inc. ............................        945,000
                                                               ------------

        Retail -- Home Furnishings (0.8%):                                 
150,000 La-Z-Boy, Inc. .....................................      3,004,500
125,000 Linens 'N Things, Inc. (b)..........................      3,212,500
                                                               ------------
                                                                  6,217,000
                                                               ------------

        Retail -- Jewelry (0.6%):                                          
125,000 Zale Corp. .........................................      4,218,750
                                                               ------------

        Retail -- Special Line (0.4%):                                     
 75,000 Michaels Stores, Inc. (b)...........................      3,147,750
                                                               ------------

        Retail -- Supermarkets (0.2%):                                     
 75,000 Ruddick Corp. ......................................      1,215,000
                                                               ------------

        Semiconductor Equipment (0.3%):                                    
100,000 Credence Systems Corp. (b)..........................      2,070,000
                                                               ------------

        Shoes & Related Apparel (0.4%):                                    
 80,000 Timberland Co. -- Class A (b).......................      2,804,000
                                                               ------------

        Soap & Cleaning Preparations (0.3%):                               
100,000 Church & Dwight Co., Inc............................      2,537,000
                                                               ------------

        Software -- Communications (0.0%):                                 
125,000 Puma Technology, Inc. (b)...........................        253,750
                                                               ------------

        Steel -- Producers (0.6%):                                         
150,000 AK Steel Holding Corp. .............................      1,966,500
 30,000 Carpenter Technology Corp. .........................        823,200
 75,000 Lone Star Technologies, Inc. (b)....................      1,687,500
                                                               ------------
                                                                  4,477,200
                                                               ------------

        Telecom Services (0.6%):                                           
100,000 Illuminet Holdings, Inc. (b)........................      3,021,000
 50,000 Leap Wireless International, Inc. (b)...............      1,227,000
                                                               ------------
                                                                  4,248,000
                                                               ------------

        Telecommunications -- Cellular (0.1%):                             
 20,000 Rural Cellular Corp. (b)............................        851,400
                                                               ------------

        Telecommunications -- Equipment (1.0%):                            
 50,000 CommScope, Inc. (b).................................      1,150,500
150,000 Plantronics, Inc. (b)...............................      3,187,500
175,000 Titan Corp. (b).....................................      3,459,750
                                                               ------------
                                                                  7,797,750
                                                               ------------

        Telecommunications -- Services/Equipment (0.8%):                   
150,000 ITC/DeltaCom, Inc. (b)..............................        399,000
 54,200 Lightbridge, Inc. (b)...............................        585,360
150,000 MasTec, Inc. (b)....................................      2,185,500
 70,000 Western Wireless Corp. -- Class A (b)...............      2,723,700
                                                               ------------
                                                                  5,893,560
                                                               ------------

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
        Textile -- Apparel (0.2%):                                           
 40,000 Kellwood Co. .........................................   $    827,200
 50,000 Phillips-Van Heusen Corp. ............................        685,000
                                                                 ------------
                                                                    1,512,200
                                                                 ------------

        Therapeutics (1.4%):                                                 
100,000 ILEX Oncology, Inc. (b)...............................      2,375,000
 90,000 ImClone Systems, Inc. (b).............................      3,857,400
100,000 Isis Pharmaceuticals, Inc. (b)........................      1,197,000
 75,000 MGI Pharma, Inc. (b)..................................        765,750
 75,000 Onyx Pharmaceuticals, Inc. (b)........................        745,500
100,000 Titan Pharmaceuticals, Inc. (b).......................      1,150,000
                                                                 ------------
                                                                   10,090,650
                                                                 ------------

        Tools -- Hand Held (0.2%):                                           
 35,200 Toro Co. .............................................      1,659,680
                                                                 ------------

        Transportation -- Air Freight (0.1%):                                
 60,000 Atlas Air, Inc. (b)...................................        880,200
                                                                 ------------

        Transportation -- Equipment & Leasing (0.3%):                        
 40,000 Xtra Corp. (b)........................................      2,188,800
                                                                 ------------

        Transportation -- Railroad (0.2%):                                   
 40,000 Florida East Coast Industries, Inc. ..................      1,230,000
                                                                 ------------

        Transportation -- Shipping (0.3%):                                   
 75,000 Overseas Shipholding Group, Inc. .....................      1,920,000
                                                                 ------------

        Utilities -- Electric Power (0.8%):                                  
 25,000 Black Hills Corp. ....................................      1,024,500
 80,000 Cleco Corp. ..........................................      1,820,000
 50,000 Northwestern Corp. ...................................      1,069,000
 50,000 UniSource Energy Corp. ...............................        920,000
 30,000 WPS Resources Corp. ..................................      1,014,000
                                                                 ------------
                                                                    5,847,500
                                                                 ------------

        Utilities -- Gas Distribution (1.3%):                                
150,000 Atmos Energy Corp. ...................................      3,030,000
110,000 Energen Corp. ........................................      2,805,000
 40,000 Laclede Gas Co. ......................................        880,000
 40,000 New Jersey Resources Corp. ...........................      1,738,000
 60,000 UGI Corp. ............................................      1,607,400
                                                                 ------------
                                                                   10,060,400
                                                                 ------------

        Wire & Cable Products (0.3%):                                        
 90,000 Belden, Inc. .........................................      2,200,500
                                                                 ------------

        Wireless Equipment (0.8%):                                           
250,000 DMC Stratex Networks, Inc. (b)........................      2,537,500
 75,000 InterDigital Communications Corp. (b).................        896,250
148,200 Proxim, Inc. (b)......................................      1,259,700
 50,000 SBA Communications Corp. (b)..........................        985,500
                                                                 ------------
                                                                    5,678,950
                                                                 ------------
        Total Common Stocks...................................    724,816,459
                                                                 ------------


Continued 

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             Small Company Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

  Shares                   Security Description                      Value    
  ------                   --------------------                      -----    
                                                                              

U.S. GOVERNMENT AGENCY OBLIGATIONS (0.3%):                                    
           U.S. Treasury Bill (0.3%):                                         
 2,000,000 3.36%**, 12/20/01*..................................   $  1,973,524
                                                                  ------------
           Total U.S. Government Agency Obligations............      1,973,524
                                                                  ------------

INVESTMENT COMPANIES (2.1%):                                                  
     7,501 Dreyfus Cash Management Money Market Fund...........          7,501
15,725,976 Federated Prime Value Obligations Money Market                     
           Fund................................................     15,725,976
                                                                  ------------
           Total Investment Companies..........................     15,733,477
                                                                  ------------
Total Investments (Cost $555,891,265) (a) -- 99.6%..............   742,523,460
Other assets in excess of liabilities -- 0.4%...................     3,233,311
                                                                  ------------
Net Assets -- 100.0%............................................  $745,756,771
                                                                  ============

-------                                                                         
(a)  Represents cost for financial reporting purposes and differs from cost     
  basis for Federal income tax purposes by the amount of losses recognized
for financial reporting in excess of Federal income tax reporting of  
  $470,148. Cost for Federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:                     

                                                                [Download Table]
                                                                             
Unrealized appreciation........................................ $244,993,266 
Unrealized depreciation........................................  (58,831,219)
                                                                ------------ 
Net unrealized appreciation.................................... $186,162,047 
                                                                ============ 

(b)  Non-income producing security.                                             
*  Part of this security has been deposited as initial margin on open futures   
contracts.                                                                
**  Effective yield at purchase.                                                
PLC -- Public Limited Company (British)                                         
ADR -- American Depositary Receipt                                              
At July 31, 2001 the Fund's open long futures contracts were as follows:        

                                                                [Download Table]

                                               Unrealized              
  # of           Opening          Notional    Depreciation    Market   
Contracts     Contract Type        Amount      on Futures      Value   
---------     -------------       --------    ------------    ------   
                                                                       
    65     Russell 2000 9/20/01  $16,088,425   $(275,550)   $15,812,875

See Notes to Financial Statements.

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (96.7%):                                                         
Australia (4.0%):                                                              
        Banking (1.5%):                                                        
131,400 Australia and New Zealand Banking Group Ltd. ...........   $  1,039,138
110,825 Commonwealth Bank of Australia..........................      1,658,409
 15,500 Macquarie Bank Ltd. ....................................        283,453
135,414 National Australia Bank Ltd. ...........................      2,224,879
 39,900 St. George Bank Ltd. ...................................        282,162
 28,100 Suncorp-Metway Ltd. ....................................        206,684
153,639 Westpac Banking Corp., Ltd. ............................      1,068,491
                                                                   ------------
                                                                      6,763,216
                                                                   ------------
        Beverages & Tobacco (0.0%):                                            
 80,262 Coca-Cola Amatil Ltd. ..................................        197,462
                                                                   ------------
        Brewery (0.1%):                                                        
170,436 Fosters Brewing Group Ltd. .............................        468,589
                                                                   ------------
        Diversified (0.1%):                                                    
 54,900 Southcorp Holdings Ltd. ................................        202,181
 25,800 Wesfarmers Ltd. ........................................        371,026
                                                                   ------------
                                                                        573,207
                                                                   ------------
        Energy (0.3%):                                                         
327,002 Broken Hill Proprietary Co., Ltd. ......................      1,608,994
                                                                   ------------
        Entertainment (0.0%):                                                  
 31,137 TABCORP Holdings Ltd. ..................................        138,203
                                                                   ------------
        Food Products (0.1%):                                                  
 94,831 Woolworths Ltd. ........................................        531,550
                                                                   ------------
        Gas Utility (0.0%):                                                    
 26,533 Australian Gas Light Co., Ltd. .........................        113,730
                                                                   ------------
        Industrial Goods & Services (0.1%):                                    
 91,818 CSR Ltd. ...............................................        315,318
                                                                   ------------
        Insurance (0.2%):                                                      
 97,700 AMP Ltd. ...............................................        950,798
 34,020 QBE Insurance Group Ltd. ...............................        187,170
                                                                   ------------
                                                                      1,137,968
                                                                   ------------
        Medical-Drugs (0.1%):                                                  
 13,100 CSL Ltd. ...............................................        311,696
                                                                   ------------
        Metals & Mining (0.2%):                                                
 27,473 Rio Tinto Ltd. .........................................        461,281
 97,071 WMC Ltd. ...............................................        425,585
                                                                   ------------
                                                                        886,866
                                                                   ------------
        Multi-Media (0.4%):                                                    
180,853 News Corp., Ltd. .......................................      1,650,582
 57,200 Publishing and Broadcasting Ltd. .......................        298,568
                                                                   ------------
                                                                      1,949,150
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                       Value    
------                    --------------------                       -----    
                                                                              

COMMON STOCKS (continued)                                                     
Australia (continued)                                                         
        Oil & Gas (0.1%):                                                     
 53,200 Santos Ltd. ...........................................   $    166,506
 58,300 Woodside Petroleum Ltd. ...............................        424,377
                                                                  ------------
                                                                       590,883
                                                                  ------------
        Packaging (0.0%):                                                     
 37,493 Amcor Ltd. ............................................        124,953
                                                                  ------------
        Property Trust (0.0%):                                                
 31,280 Stockland Trust Group..................................         65,849
                                                                  ------------
        Real Estate (0.2%):                                                   
117,125 General Property Trust Units...........................        164,574
 29,772 Lend Lease Corp., Ltd. ................................        181,226
 46,700 Westfield Holdings Ltd. ...............................        331,648
138,173 Westfield Trust Units..................................        236,203
                                                                  ------------
                                                                       913,651
                                                                  ------------
        Retail -- General Merchandise (0.1%):                                 
103,436 Coles Myer Ltd. (b)....................................        323,734
                                                                  ------------
        Services (0.1%):                                                      
 20,419 Brambles Industries Ltd. ..............................        480,186
                                                                  ------------
        Steel (0.0%):                                                         
 28,436 OneSteel Ltd. .........................................         15,146
                                                                  ------------
        Telecom Equipment (0.4%):                                             
682,700 Telstra Corp., Ltd. ...................................      1,721,148
                                                                  ------------
                                                                    19,231,499
                                                                  ------------
Austria (0.3%):                                                               
        Banking (0.0%):                                                       
  2,600 Erste Bank der oesterreichischen Sparkassen AG.........        132,511
                                                                  ------------
        Building Products (0.0%):                                             
 10,764 Wienerberger Baustoffindustrie AG......................        194,952
                                                                  ------------
        Electric Utility (0.0%):                                              
  1,869 Oesterreichische Elektrizitaetswirtschafts AG, Class                  
        A......................................................        174,976
                                                                  ------------
        Engineering (0.0%):                                                   
  1,100 VA Technologie AG......................................         31,183
                                                                  ------------
        Insurance (0.0%):                                                     
  1,380 EA-Generali AG.........................................        193,189
                                                                  ------------
        Metals & Mining (0.0%):                                               
    175 Radex-Heraklith Industriebeteiligungs AG...............          3,445
                                                                  ------------
        Oil & Gas (0.1%):                                                     
  2,140 OMV AG.................................................        198,943
                                                                  ------------
        Paper Products (0.0%):                                                
    900 Mayr-Melnhof Karton AG.................................         43,113
                                                                  ------------
        Steel (0.0%):                                                         
    800 Boehler-Uddeholm AG....................................         33,598
                                                                  ------------

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Austria (continued)                                                            
       Telecommunications (0.0%):                                              
19,800 Telekom Austria AG (b)...................................   $    129,584
                                                                   ------------
       Tobacco (0.2%):                                                         
 3,600 Austria Tabakwerke AG....................................        263,736
                                                                   ------------
       Transportation (0.0%):                                                  
 1,800 Austrian Airlines........................................         19,529
 1,500 Flughafen Wien AG........................................         49,675
                                                                   ------------
                                                                         69,204
                                                                   ------------
                                                                      1,468,434
                                                                   ------------
Belgium (1.7%):                                                                
       Auto -- Retail (0.0%):                                                  
   600 S.A. D'Ieteren NV........................................        100,637
                                                                   ------------
       Banking (0.3%):                                                         
31,420 KBC Bancassurance Holding NV.............................      1,224,449
                                                                   ------------
       Brewery (0.1%):                                                         
21,400 Interbrew................................................        561,719
                                                                   ------------
       Chemicals (0.1%):                                                       
10,510 Solvay SA................................................        561,860
                                                                   ------------
       Diversified Operations (0.2%):                                          
15,000 Groupe Bruxelles Lambert SA..............................        879,327
                                                                   ------------
       Food -- Retail (0.0%):                                                  
 4,900 Colruyt NV...............................................        196,614
                                                                   ------------
       Gas & Electric Utility (0.3%):                                          
 6,800 Electrabel SA............................................      1,468,379
                                                                   ------------
       Insurance (0.5%):                                                       
74,000 Fortis...................................................      1,935,271
                                                                   ------------
       Merchandising (0.1%):                                                   
 6,500 Delhaize-Le Lion SA......................................        387,866
                                                                   ------------
       Metals & Mining (0.0%):                                                 
 3,200 Union Miniere SA.........................................        125,153
                                                                   ------------
       Pharmaceuticals (0.1%):                                                 
18,200 UCB SA...................................................        693,655
                                                                   ------------
       Photography/Imaging Technology (0.0%):                                  
17,500 Agfa Gevaert NV..........................................        238,862
                                                                   ------------
       Wire & Cable Products (0.0%):                                           
 1,800 Bekaert NV...............................................         63,658
                                                                   ------------
                                                                      8,437,450
                                                                   ------------
Denmark (1.3%):                                                                
       Banking & Finance (0.2%):                                               
65,370 Danske Bank..............................................      1,136,397
                                                                   ------------
       Brewery (0.1%):                                                         
 6,700 Carlsberg AS, Class B....................................        286,461
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Denmark (continued)                                                            
        Commercial Services (0.0%):                                            
  3,400 ISS AS (b)..............................................   $    205,672
                                                                   ------------
        Food Products (0.0%):                                                  
  5,600 Danisco AS..............................................        209,173
                                                                   ------------
        Medical Products (0.0%):                                               
  6,100 William Demant AS (b)...................................        177,335
                                                                   ------------
        Pharmaceuticals (0.5%):                                                
 31,730 Novo Nordisk AS, Class B................................      1,434,897
 12,646 Novozymes AS, Class B...................................        270,343
                                                                   ------------
                                                                      1,705,240
                                                                   ------------
        Power Conversion/Supply Equipment (0.0%):                              
  4,100 Vestas Wind Systems AS..................................        177,224
                                                                   ------------
        Security Services (0.0%):                                              
  1,900 Group 4 Falck AS........................................        219,826
                                                                   ------------
        Telecommunications (0.1%):                                             
 19,100 Tele Danmark AS, Class B................................        682,019
                                                                   ------------
        Transportation & Shipping (0.4%):                                      
     84 D/S 1912, Class B.......................................        685,731
     64 D/S Svendborg AS, Class B...............................        681,080
                                                                   ------------
                                                                      1,366,811
                                                                   ------------
                                                                      6,166,158
                                                                   ------------
Finland (1.8%):                                                                
        Computer Software (0.0%):                                              
  4,200 TietoEnator OYJ.........................................        101,792
                                                                   ------------
        Diversified Financial Services (0.0%):                                 
 23,000 Sampo-Leonia Insurance Co. .............................        192,183
                                                                   ------------
        Forest Products (0.1%):                                                
 16,800 UPM-Kymmene Corp. ......................................        499,773
                                                                   ------------
        Machinery & Equipment (0.0%):                                          
    800 Kone OYJ., Class B......................................         63,312
  7,000 Metso OYJ...............................................         72,271
                                                                   ------------
                                                                        135,583
                                                                   ------------
        Paper Products (0.1%):                                                 
 30,000 Stora Enso OYJ..........................................        278,235
                                                                   ------------
        Telecom Equipment (1.6%):                                              
332,800 Nokia OYJ...............................................      7,323,276
                                                                   ------------
        Telecommunications (0.0%):                                             
 31,200 Sonera OYJ..............................................        193,819
                                                                   ------------
                                                                      8,724,661
                                                                   ------------
France (13.2%):                                                                
        Advertising (0.0%):                                                    
  9,300 Publicis SA.............................................        223,769
                                                                   ------------

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                        Value    
------                   --------------------                        -----    
                                                                              

COMMON STOCKS (continued)                                                     
France (continued)                                                            
       Aerospace/Defense (0.2%):                                              
49,000 European Aeronautic Defence And Space Co. ..............   $    973,209
                                                                  ------------
       Aluminum (0.1%):                                                       
 5,800 Pechiney SA -- A Shares.................................        296,871
                                                                  ------------
       Audio/Video Products (0.1%):                                           
 8,000 Thomson Multimedia......................................        256,886
                                                                  ------------
       Auto Parts (0.1%):                                                     
 5,645 Valeo SA................................................        253,129
                                                                  ------------
       Automotive (0.3%):                                                     
19,572 PSA Peugeot Citroen SA..................................        924,726
14,000 Renault SA..............................................        635,128
                                                                  ------------
                                                                     1,559,854
                                                                  ------------
       Banking (1.1%):                                                        
38,505 Banque Nationale de Paris...............................      3,345,419
30,688 Societe Generale........................................      1,707,693
                                                                  ------------
                                                                     5,053,112
                                                                  ------------
       Beverages & Tobacco (0.5%):                                            
35,500 LVMH (Moet Hennessy Louis Vuitton)......................      1,879,178
 5,400 Pernod Ricard...........................................        392,153
                                                                  ------------
                                                                     2,271,331
                                                                  ------------
       Building & Construction (0.2%):                                        
24,060 Bouygues SA.............................................        810,477
 5,280 Vinci SA................................................        338,627
                                                                  ------------
                                                                     1,149,104
                                                                  ------------
       Building Products (0.2%):                                              
 1,195 Imetal SA...............................................        123,795
 9,821 Lafarge SA..............................................        838,667
                                                                  ------------
                                                                       962,462
                                                                  ------------
       Building-Heavy Construction (0.0%):                                    
 1,100 Compagnie Francaise d'Etudes et de Construction SA                     
       (Technip)...............................................        149,179
                                                                  ------------
       Chemicals (0.2%):                                                      
 7,555 L'Air Liquide...........................................      1,064,252
                                                                  ------------
       Computer Services (0.0%):                                              
 2,000 Atos Origin (b).........................................        151,717
                                                                  ------------
       Computer Software (0.1%):                                              
 8,200 Dassault Systems SA.....................................        346,318
                                                                  ------------
       Defense (0.1%):                                                        
 2,582 Sagem SA................................................        126,172
12,325 Thomson CSF.............................................        481,604
                                                                  ------------
                                                                       607,776
                                                                  ------------
       Diversified (1.1%):                                                    
 9,306 Lagardere S.C.A.........................................        490,574
76,793 Vivendi Universal SA....................................      4,501,742
                                                                  ------------
                                                                     4,992,316
                                                                  ------------
                                                                [Download Table]

Shares                   Security Description                      Value    
------                   --------------------                      -----    
                                                                            

COMMON STOCKS (continued)                                                   
France (continued)                                                          
        Electrical & Electronic (0.1%):                                     
 11,200 Schneider SA.........................................   $    597,767
                                                                ------------
        Electronic Components/Instruments (0.4%):                           
 64,300 STMicroelectronics NV................................      2,084,974
                                                                ------------
        Energy (2.0%):                                                      
 63,223 Total SA, Class B....................................      8,994,558
                                                                ------------
        Engineering Services (0.0%):                                        
  2,500 Altran Technologies SA...............................        127,087
                                                                ------------
        Food Products (1.0%):                                               
 50,636 Carrefour SA.........................................      2,859,827
  6,600 Etablissements Economiques du Casino Guichard-                      
        Perrachon SA.........................................        538,489
 11,742 Groupe Danone........................................      1,530,779
                                                                ------------
                                                                   4,929,095
                                                                ------------
        Food Service -- Catering (0.1%):                                    
 11,360 Sodexho Alliance SA..................................        580,961
                                                                ------------
        Health & Personal Care (1.3%):                                      
 36,500 L'Oreal SA...........................................      2,649,070
 52,992 Sanofi-Synthelabo SA.................................      3,329,039
                                                                ------------
                                                                   5,978,109
                                                                ------------
        Industrial Goods & Services (0.1%):                                 
  9,801 Michelin Class B, Registered.........................        297,824
                                                                ------------
        Insurance (0.8%):                                                   
120,000 Axa..................................................      3,512,057
  8,800 Cap Gemini...........................................        610,191
                                                                ------------
                                                                   4,122,248
                                                                ------------
        Investment Companies (0.0%):                                        
  2,970 Eurazeo..............................................        164,232
                                                                ------------
        Leisure (0.1%):                                                     
 16,450 Accor SA.............................................        662,076
    541 Club Mediterranee SA.................................         32,543
                                                                ------------
                                                                     694,619
                                                                ------------
        Machinery & Equipment (0.1%):                                       
 16,000 Alstom...............................................        445,875
                                                                ------------
        Medical Supplies (0.0%):                                            
    700 Essilor International................................        207,994
                                                                ------------
        Merchandising (0.3%):                                               
  8,585 Pinault Printemps Redoute............................      1,268,686
                                                                ------------
        Miscellaneous Materials & Commodities (0.2%):                       
  6,133 Compagnie de Saint Gobain............................        904,184
                                                                ------------
        Office Equipment & Services (0.0%):                                 
  3,500 Bic..................................................        134,743
                                                                ------------

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
France (continued)                                                             
       Oil & Gas Production & Services (0.0%):                                 
 1,180 Coflexip SA..............................................   $    188,937
                                                                   ------------
       Pharmaceuticals (0.9%):                                                 
56,514 Aventis SA...............................................      4,343,922
                                                                   ------------
       Real Estate (0.0%):                                                     
 3,300 Unibail (Union du Credit-Bail Immobilier)................        179,881
                                                                   ------------
       Retail -- Building (0.1%):                                              
 6,000 Castorama Dubois Investessement SA.......................        308,158
                                                                   ------------
       Steel (0.0%):                                                           
14,600 Unisor Sacilor SA........................................        166,066
                                                                   ------------
       Telecom Equipment (0.3%):                                               
87,785 Alcatel..................................................      1,563,036
                                                                   ------------
       Telecommunications -- Services & Equipment (0.6%):                      
62,400 France Telecom...........................................      2,874,532
                                                                   ------------
       Television (0.0%):                                                      
 6,000 Societe Television Francaise 1...........................        202,376
                                                                   ------------
       Water Treatments (0.5%):                                                
76,100 Suez SA..................................................      2,568,139
                                                                   ------------
                                                                     64,239,288
                                                                   ------------
Germany (14.0%):                                                               
       Automotive (1.5%):                                                      
99,087 DaimlerChrysler AG.......................................      4,885,340
 3,480 MAN AG...................................................         61,201
 8,610 MAN AG...................................................        192,853
 1,580 Porsche AG...............................................        569,559
 7,870 Volkswagen AG............................................        239,628
26,870 Volkswagen AG............................................      1,241,326
                                                                   ------------
                                                                      7,189,907
                                                                   ------------
       Banking (1.9%):                                                         
54,853 Bayerische Vereinsbank AG................................      2,438,082
72,260 Deutsche Bank AG.........................................      5,057,289
48,160 Dresdner Bank AG.........................................      1,938,333
                                                                   ------------
                                                                      9,433,704
                                                                   ------------
       Building Products (0.1%):                                               
 6,000 Buderus AG...............................................        141,742
 5,352 Heidelberger Zement AG...................................        246,312
                                                                   ------------
                                                                        388,054
                                                                   ------------
       Business Services (0.3%):                                               
 1,900 D. Logistics AG..........................................         22,526
98,500 Deutsche Post AG.........................................      1,538,362
                                                                   ------------
                                                                      1,560,888
                                                                   ------------
       Chemicals (1.3%):                                                       
65,380 BASF AG..................................................      2,668,583
90,540 Bayer AG.................................................      3,731,175
                                                                   ------------
                                                                      6,399,758
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Germany (continued)                                                            
        Chemicals -- Diversified (0.1%):                                       
 18,600 Degussa AG..............................................   $    509,379
                                                                   ------------
        Clothing (0.0%):                                                       
  3,400 Adidas AG...............................................        230,252
                                                                   ------------
        Computer Software (0.9%):                                              
 29,609 SAP AG..................................................      4,269,383
                                                                   ------------
        Diversified (2.3%):                                                    
 17,940 Preussag AG.............................................        539,964
 95,955 Siemens AG..............................................      5,360,590
 86,382 VEBA AG.................................................      4,708,640
                                                                   ------------
                                                                     10,609,194
                                                                   ------------
        Electronic Components/Instruments (0.0%):                              
  4,500 Epcos AG................................................        208,991
                                                                   ------------
        Financial Services (0.1%):                                             
  4,000 Deutsche Boerse AG......................................        135,933
  3,600 MLP AG..................................................        284,271
                                                                   ------------
                                                                        420,204
                                                                   ------------
        Food Products (0.0%):                                                  
  6,000 Kamps AG................................................         33,598
                                                                   ------------
        Gas & Electric Utility (0.4%):                                         
 48,250 RWE AG..................................................      2,068,605
                                                                   ------------
        Health & Personal Care (0.2%):                                         
  7,860 Beiersdorf AG...........................................        920,159
                                                                   ------------
        Health Care (0.2%):                                                    
 18,900 Schering AG.............................................      1,020,308
                                                                   ------------
        Insurance (2.0%):                                                      
 20,570 Allianz AG..............................................      5,768,281
 14,261 Muenchener Rueckver AG..................................      4,080,204
                                                                   ------------
                                                                      9,848,485
                                                                   ------------
        Internet Services/Software (0.2%):                                     
110,500 T-Online International AG (b)...........................        858,538
                                                                   ------------
        Machinery & Equipment (0.1%):                                          
 12,160 Linde AG................................................        518,140
                                                                   ------------
        Medical Equipment & Supplies (0.1%):                                   
  3,600 Fresenius AG............................................        360,655
                                                                   ------------
        Medical Products (0.1%):                                               
  8,600 Fresenius Medical Care AG...............................        674,203
                                                                   ------------
        Medical -- Drugs (0.0%):                                               
  5,400 Gehe AG.................................................        240,017
                                                                   ------------
        Metals & Mining (0.1%):                                                
 38,640 Thyssen Krupp AG........................................        531,464
                                                                   ------------

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
Germany (continued)                                                          
        Pharmaceuticals (0.2%):                                              
 12,600 Altana AG.............................................   $    465,229
 16,100 Merck KGaA............................................        612,773
                                                                 ------------
                                                                    1,078,002
                                                                 ------------
        Printing (0.1%):                                                     
  8,000 Heidelberger Druckmaschinen AG Mfg....................        384,559
                                                                 ------------
        Real Estate Investment/Management (0.0%):                            
 18,000 WCM Beteiligungs & Grundbesitz AG.....................        190,565
                                                                 ------------
        Retail -- Major Department Stores (0.2%):                            
 29,273 Metro AG..............................................      1,147,438
                                                                 ------------
        Retail Stores (0.1%):                                                
  8,810 Karstadt AG...........................................        265,937
                                                                 ------------
        Retail -- General Merchandise (0.0%):                                
  1,630 Douglas Holding AG....................................         46,351
                                                                 ------------
        Semiconductor Manufacturer (0.3%):                                   
 50,000 Infineon Technologies AG..............................      1,288,367
                                                                 ------------
        Software & Computer Services (0.0%):                                 
  2,000 Software AG...........................................        111,994
                                                                 ------------
        Telecommunications (1.1%):                                           
231,400 Deutsche Telecom AG...................................      5,140,558
                                                                 ------------
        Tire & Rubber (0.0%):                                                
  9,570 Continental AG........................................        128,530
                                                                 ------------
        Transportation (0.1%):                                               
 28,680 Lufthansa AG..........................................        481,798
                                                                 ------------
                                                                   68,557,985
                                                                 ------------
Greece (0.1%):                                                               
        Banking (0.1%):                                                      
  4,000 Alpha Bank AE.........................................         86,095
  8,000 National Bank of Greece SA............................        216,988
                                                                 ------------
                                                                      303,083
                                                                 ------------
        Telecommunications (0.0%):                                           
  8,000 Hellenic Telecommunications Organization SA...........        116,054
                                                                 ------------
                                                                      419,137
                                                                 ------------
Hong Kong (1.2%):                                                            
        Banking (0.3%):                                                      
116,500 Hang Seng Bank Ltd. ..................................      1,306,993
                                                                 ------------
        Diversified (0.0%):                                                  
 28,000 Swire Pacific Ltd., Class A...........................        149,704
    500 Wharf Holdings Ltd. ..................................          1,132
                                                                 ------------
                                                                      150,836
                                                                 ------------
        Electric Utility (0.1%):                                             
148,080 CLP Holdings Ltd. ....................................        624,643
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Hong Kong (continued)                                                          
        Electrical & Electronic (0.0%):                                        
 49,100 Johnson Electric Holdings Ltd. .........................   $     71,767
                                                                   ------------
        Industrial Holding Company (0.5%):                                     
251,900 Hutchison Whampoa Ltd. .................................      2,430,379
                                                                   ------------
        Real Estate (0.3%):                                                    
146,136 Sun Hung Kai Properties Ltd. ...........................      1,283,474
                                                                   ------------
        Transportation (0.0%):                                                 
127,000 Cathay Pacific Airways..................................        169,347
                                                                   ------------
                                                                      6,037,439
                                                                   ------------
Ireland (0.8%):                                                                
        Airlines (0.1%):                                                       
 25,000 Ryanair Holdings PLC (b)................................        262,486
                                                                   ------------
        Applications Software (0.0%):                                          
  1,500 IONA Technologies PLC (b)...............................         26,249
                                                                   ------------
        Banking (0.2%):                                                        
 60,779 Allied Irish Banks PLC..................................        640,272
                                                                   ------------
        Building Products (0.1%):                                              
 28,419 CRH PLC.................................................        487,856
                                                                   ------------
        Chemicals -- Specialty (0.0%):                                         
  1,500 SGL Carbon AG...........................................         45,410
                                                                   ------------
        Consumer Goods & Services (0.0%):                                      
 51,200 Waterford Wedgewood PLC.................................         48,381
                                                                   ------------
        Diversified (0.0%):                                                    
  5,900 DCC PLC.................................................         57,042
                                                                   ------------
        Finance (0.0%):                                                        
 19,827 Irish Life & Permanent PLC..............................        231,591
                                                                   ------------
        Food Products (0.0%):                                                  
  8,123 Greencore Group PLC.....................................         19,190
 11,900 Kerry Group PLC.........................................        148,682
                                                                   ------------
                                                                        167,872
                                                                   ------------
        Hotels & Lodging (0.0%):                                               
  4,100 Jurys Doyle Hotel Group PLC.............................         35,514
                                                                   ------------
        Industrial Goods & Services (0.0%):                                    
 75,300 Smurfit (Jefferson) Group...............................        154,168
                                                                   ------------
        Media (0.0%):                                                          
 35,796 Independent News and Media PLC..........................         76,107
                                                                   ------------
        Pharmaceuticals (0.4%):                                                
 21,900 Elan Corp. PLC (b)......................................      1,262,740
                                                                   ------------
        Telecommunications (0.0%):                                             
152,700 eircom PLC..............................................        177,695
                                                                   ------------
                                                                      3,673,383
                                                                   ------------

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                       Value    
------                    --------------------                       -----    
                                                                              

COMMON STOCKS (continued)                                                     
Italy (7.9%):                                                                 
        Aerospace/Defense (0.2%):                                             
805,900 Finmeccanica SpA.......................................   $    732,624
                                                                  ------------
        Airlines (0.0%):                                                      
103,900 Alitalia SpA (b).......................................        114,089
                                                                  ------------
        Automotive (0.1%):                                                    
 24,553 Fiat SpA...............................................        558,765
  9,082 Fiat SpA Preferred.....................................        131,511
                                                                  ------------
                                                                       690,276
                                                                  ------------
        Banking (1.5%):                                                       
731,499 Banca Ambrosiano Veneto SpA............................      2,329,696
 65,650 Banca Ambrosiano Veneto SpA di Risp.,                                 
        (Non-convertible)......................................        133,837
127,400 Banca Di Roma SpA (b)..................................        382,338
249,480 Banca Monte dei Paschi di Siena SpA....................        796,733
203,000 Banca Nazionale del Lavoro (BNL).......................        593,235
 17,100 Banca Popolare di Milano...............................         65,831
483,000 Credito Italiano SpA...................................      2,045,393
 46,725 Rolo Banca 1473 SpA....................................        715,846
                                                                  ------------
                                                                     7,062,909
                                                                  ------------
        Banking & Finance (0.3%):                                             
179,600 Bipop-Carire SpA.......................................        568,852
 56,770 Mediobanca SpA.........................................        649,697
                                                                  ------------
                                                                     1,218,549
                                                                  ------------
        Broadcasting & Publishing (0.1%):                                     
 78,800 Mediaset SpA...........................................        664,641
                                                                  ------------
        Building Products (0.0%):                                             
 11,900 Italcementi SpA........................................         97,143
                                                                  ------------
        Electric Integrated (0.5%):                                           
351,350 Enel SpA (b)...........................................      2,360,942
                                                                  ------------
        Finance (0.3%):                                                       
135,112 Banc San Paolo Torino..................................      1,673,946
                                                                  ------------
        Financial Services (0.2%):                                            
 85,000 Banca Fideuram SpA.....................................        799,487
                                                                  ------------
        Food & Dairy Products (0.0%):                                         
 53,300 Parmalat Finanziaria SpA...............................        142,237
                                                                  ------------
        Gas & Electric Utility (0.1%):                                        
173,300 AEM SpA................................................        332,068
                                                                  ------------
        Holding Companies (0.1%):                                             
 61,000 Edison SpA.............................................        616,981
 48,600 Snia SpA...............................................         83,344
                                                                  ------------
                                                                       700,325
                                                                  ------------
        Insurance (1.4%):                                                     
 68,700 Alleanza Assicurazioni.................................        763,988
145,763 Assicurazioni Generali.................................      4,648,673
 65,000 Mediolanum SpA.........................................        697,818
                                                                [Download Table]

 Shares                    Security Description                      Value    
 ------                    --------------------                      -----    
                                                                              

COMMON STOCKS (continued)                                                     
Italy (continued)                                                             
          Insurance (continued)                                               
   69,042 Riuniune Adriatici de Sicurta SpA....................   $    846,322
    5,900 Societa Assicuratrice Industriale SpA (SAI)..........         82,079
                                                                  ------------
                                                                     7,038,880
                                                                  ------------
          Jewelry (0.1%):                                                     
   21,300 Bulgari SpA..........................................        247,120
                                                                  ------------
          Multi-Media (0.2%):                                                 
1,037,400 Seat Pagine Gialle SpA (b)...........................      1,086,487
                                                                  ------------
          Oil & Gas (0.0%):                                                   
   23,400 Italgas SpA..........................................        219,480
                                                                  ------------
          Oil -- Comp Intergrated (0.7%):                                     
  281,700 Eni SpA..............................................      3,423,523
                                                                  ------------
          Optical Supplies (0.1%):                                            
   15,000 Luxottica Group SpA..................................        262,092
                                                                  ------------
          Printing & Publishing (0.0%):                                       
    5,000 Gruppo Editoriale L'Espresso SpA.....................         18,811
   22,800 Mondadori (Arnoldo) Editore SpA......................        169,566
                                                                  ------------
                                                                       188,377
                                                                  ------------
          Public Thoroughfares (0.1%):                                        
   77,500 Concessioni e Costruzioni Autostrade SpA.............        539,758
                                                                  ------------
          Restaurants (0.0%):                                                 
   17,100 Autogrill SpA........................................        190,163
                                                                  ------------
          Retail Stores (0.0%):                                               
   20,100 La Rinascente SpA....................................         85,646
                                                                  ------------
          Telecommunications (1.8%):                                          
    4,700 e.Biscom SpA (b).....................................        187,314
  700,200 Olivetti SpA.........................................      1,160,955
  673,620 Telecom Italia Mobile SpA di Risp,                                  
          (Non-convertible)....................................      3,819,216
  310,000 Telecom Italia SpA...................................      2,877,804
    8,800 Tiscali SpA (b)......................................         56,746
                                                                  ------------
                                                                     8,102,035
                                                                  ------------
          Textile Products (0.0%):                                            
   11,572 Benetton Group SpA...................................        160,480
                                                                  ------------
          Tire & Rubber (0.1%):                                               
  120,700 Pirelli SpA..........................................        255,568
                                                                  ------------
                                                                    38,388,845
                                                                  ------------
Japan (21.2%):                                                                
          Apparel (0.0%):                                                     
    2,000 Shimamura Co., Ltd. .................................        115,310
                                                                  ------------
          Appliances & Household Products (1.3%):                             
  133,000 Matsushita Electric Industrial Co., Ltd. ............      1,853,130
   13,000 Pioneer Electronic Corp. ............................        328,954
  105,000 Sanyo Electric Co. ..................................        577,632
   59,000 Sharp Corp. .........................................        678,440

Continued 

59

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Japan (continued)                                                              
        Appliances & Household Products (continued)                            
 58,400 Sony Corp...............................................   $  2,876,025
                                                                   ------------
                                                                      6,314,181
                                                                   ------------
        Automotive (1.8%):                                                     
 50,000 Honda Motor Co., Ltd. ..................................      2,274,172
183,000 Nissan Motor Co., Ltd. .................................      1,257,313
177,000 Toyota Motor Corp. .....................................      5,839,496
                                                                   ------------
                                                                      9,370,981
                                                                   ------------
        Banking (1.6%):                                                        
 27,000 77 Bank.................................................        147,020
194,000 Asahi Bank Ltd. ........................................        323,125
 44,000 Ashikaga Bank Ltd. (b)..................................         63,068
 79,000 Bank of Yokohama Ltd. ..................................        303,650
 29,700 Chou Mitsui Trust & Banking Co. ........................         45,425
 36,000 Gunma Bank Ltd. ........................................        165,758
 48,000 Hokuriku Bank (b).......................................         82,255
 61,000 Joyo Bank...............................................        163,636
    270 Mitsubishi Tokyo Financial Group, Inc. (MTFG)...........      2,159,903
    399 Mizuho Holdings, Inc. ..................................      1,533,624
 55,000 Shizuoka Bank...........................................        449,229
216,400 Sumitomo Bank Ltd. .....................................      1,549,173
 44,000 The Bank of Fukuoka Ltd. ...............................        187,443
142,000 The Daiwa Bank Ltd. ....................................        146,684
     93 UFJ Holdings, Inc. .....................................        420,017
                                                                   ------------
                                                                      7,740,010
                                                                   ------------
        Beverages & Tobacco (0.0%):                                            
 16,000 Takara Shuzo Co., Ltd. .................................        182,318
                                                                   ------------
        Brewery (0.2%):                                                        
 35,000 Asahi Breweries Ltd. ...................................        375,839
 69,000 Kirin Brewery Co., Ltd. ................................        564,683
                                                                   ------------
                                                                        940,522
                                                                   ------------
        Broadcasting & Television (0.1%):                                      
     33 Fuji Television Network, Inc. ..........................        162,515
  6,000 Tokyo Broadcasting System...............................        103,539
                                                                   ------------
                                                                        266,054
                                                                   ------------
        Building Products (0.1%):                                              
 66,400 Taiheiyo Cement Corp. ..................................        153,132
 14,000 Tostem Corp. ...........................................        256,725
                                                                   ------------
                                                                        409,857
                                                                   ------------
        Cellular/Wireless Telecommunications (0.7%):                           
    250 NTT DoCoMo, Inc. .......................................      3,463,307
                                                                   ------------
        Chemicals (1.1%):                                                      
100,000 Asahi Chemical Industry Co., Ltd. ......................        407,589
 27,000 Daicel Chemical Industries Ltd. ........................         90,807
 55,000 Dainippon Ink & Chemicals, Inc. ........................        134,769
 25,000 Kaneka Corp. ...........................................        209,800
150,000 Mitsubishi Chemical Corp. ..............................        399,982
 39,000 Sekisui Chemical Co., Ltd. .............................        122,733
 30,000 Shin-Etsu Chemical Co., Ltd. ...........................      1,040,193
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Japan (continued)                                                              
        Chemicals (continued)                                                  
 72,000 Showa Denko Kabushiki Kaisha (b)........................   $     84,753
113,000 Sumitomo Chemical Co. ..................................        481,388
 51,000 Takeda Chemical Industries..............................      2,352,327
 39,000 Tosoh Corp. ............................................         96,812
                                                                   ------------
                                                                      5,421,153
                                                                   ------------
        Commercial Services (0.1%):                                            
  8,000 Benesse Corp. ..........................................        238,308
  3,000 Toyo Information Systems Co., Ltd. .....................         91,287
                                                                   ------------
                                                                        329,595
                                                                   ------------
        Computer Services (0.0%):                                              
  4,000 CSK Corp. ..............................................        119,794
  2,000 Fuji Soft ABC, Inc. ....................................         99,295
                                                                   ------------
                                                                        219,089
                                                                   ------------
        Computer Systems (0.0%):                                               
  3,000 Meitec Corp. ...........................................        100,896
                                                                   ------------
        Construction (0.2%):                                                   
 37,000 Daiwa House Industry Co., Ltd. .........................        273,173
 35,000 Sekisui House Ltd. .....................................        289,237
 55,000 Shimizu Corp. ..........................................        224,614
                                                                   ------------
                                                                        787,024
                                                                   ------------
        Consumer Goods (0.0%):                                                 
  6,000 Sanrio Co., Ltd. .......................................         70,147
                                                                   ------------
        Consumer Goods & Services (0.1%):                                      
 31,000 Nippon Sheet Glass Co., Ltd. ...........................        157,631
 26,000 Toto Ltd. ..............................................        161,770
                                                                   ------------
                                                                        319,401
                                                                   ------------
        Cosmetics/Personal Care (0.3%):                                        
 43,000 Kao Corp. ..............................................      1,005,440
 30,000 Shiseido Co., Ltd. .....................................        281,549
                                                                   ------------
                                                                      1,286,989
                                                                   ------------
        Data Processing & Reproduction (0.3%):                                 
136,000 Fujitsu Ltd. ...........................................      1,268,731
                                                                   ------------
        Distribution (0.1%):                                                   
 99,000 Itochu Corp. ...........................................        347,228
                                                                   ------------
        Diversified (0.0%):                                                    
 15,000 Yamaha Corp. ...........................................        149,663
                                                                   ------------
        Electric Utility (0.8%):                                               
 67,800 Kansai Electric Power Co., Inc. ........................      1,126,556
 35,500 Tohoku Electric Power...................................        625,397
 93,900 Tokyo Electric Power Co. ...............................      2,214,398
                                                                   ------------
                                                                      3,966,351
                                                                   ------------
        Electrical & Electronic (0.9%):                                        
 18,000 Casio Computer Co., Ltd. ...............................         95,707
 12,400 Kyocera Corp. ..........................................        929,399
148,000 Mitsubishi Electric Corp. ..............................        619,824

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Japan (continued)                                                              
        Electrical & Electronic (continued)                                    
 19,000 Omron Corp. ............................................   $    273,862
  8,600 Rohm Co., Ltd. .........................................      1,186,557
221,000 Toshiba Corp. ..........................................      1,033,499
                                                                   ------------
                                                                      4,138,848
                                                                   ------------
        Electrical Equipment (0.2%):                                           
 13,000 Alps Electric Co., Ltd. ................................        108,888
  5,000 SMC Corp. ..............................................        466,445
  9,000 Taiyo Yuden Co., Ltd. ..................................        191,703
                                                                   ------------
                                                                        767,036
                                                                   ------------
        Electronic Components/Instruments (1.0%):                              
  7,600 Advantest Corp. ........................................        558,677
 12,800 Fanuc Ltd. .............................................        554,513
  3,000 Hirose Electric Co., Ltd. ..............................        204,195
214,000 Hitachi Ltd. ...........................................      1,801,033
113,000 NEC Corp. ..............................................      1,510,218
 12,000 Nitto Denko Corp. ......................................        210,441
 18,000 Yokogawa Electric Corp. ................................        135,489
                                                                   ------------
                                                                      4,974,566
                                                                   ------------
        Engineering (0.1%):                                                    
 67,000 Kajima Corp. ...........................................        182,951
 96,000 Kawasaki Heavy Industries Ltd. (b)......................        140,678
 19,000 Kinden Corp. ...........................................        118,369
 51,000 Obayashi Corp. .........................................        201,745
                                                                   ------------
                                                                        643,743
                                                                   ------------
        Entertainment (0.2%):                                                  
  4,000 NAMCO...................................................         74,631
  7,000 Oriental Land Co., Ltd. ................................        524,100
  1,700 Toho Co. ...............................................        206,918
                                                                   ------------
                                                                        805,649
                                                                   ------------
        Finance (0.8%):                                                        
  9,000 Acom Co., Ltd. .........................................        733,661
 92,000 Daiwa Securities Co., Ltd. .............................        799,323
126,000 Nomura Securities Co., Ltd. ............................      2,058,285
  6,000 Orix Corp. .............................................        506,884
                                                                   ------------
                                                                      4,098,153
                                                                   ------------
        Finance Services (0.3%):                                               
  9,000 Promise Co., Ltd. ......................................        652,223
  9,000 Takefuji Corp. .........................................        762,488
                                                                   ------------
                                                                      1,414,711
                                                                   ------------
        Food & Household Products (0.2%):                                      
 46,000 Ajinomoto Co., Inc. ....................................        530,427
 17,000 Nippon Meat Packers, Inc. ..............................        204,603
 10,000 Nissin Food Products Co., Ltd. .........................        215,005
                                                                   ------------
                                                                        950,035
                                                                   ------------
        Food Products (0.0%):                                                  
 51,000 Daiei, Inc. ............................................         89,029
 16,000 Yamazaki Baking Co., Ltd. ..............................        107,751
                                                                   ------------
                                                                        196,780
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Japan (continued)                                                              
        Forest Products (0.1%):                                                
 72,000 Oji Paper Co., Ltd. ....................................   $    391,478
  5,000 Uni-Charm...............................................        136,130
                                                                   ------------
                                                                        527,608
                                                                   ------------
        Gas Utility (0.2%):                                                    
170,000 Osaka Gas Co., Ltd. ....................................        529,546
193,000 Tokyo Gas Co., Ltd. ....................................        602,735
                                                                   ------------
                                                                      1,132,281
                                                                   ------------
        Health & Personal Care (0.2%):                                         
 31,000 Kyowa Hakko Kogyo Co. ..................................        194,866
 32,000 Sankyo Co., Ltd. .......................................        618,831
                                                                   ------------
                                                                        813,697
                                                                   ------------
        Health Care (0.1%):                                                    
  8,000 Hoya Corp. .............................................        507,364
                                                                   ------------
        Industrial Goods & Services (0.5%):                                    
 60,000 Bridgestone Corp. ......................................        498,236
 50,000 Denso Corp. ............................................        922,882
 24,000 NGK Insulators Ltd. ....................................        202,369
 16,000 NGK Spark Plug Co., Ltd. ...............................        134,272
 52,000 Sumitomo Electric Industries Ltd. ......................        515,500
                                                                   ------------
                                                                      2,273,259
                                                                   ------------
        Insurance (0.3%):                                                      
 53,000 Mitsui Marine & Fire Insurance Co., Ltd. ...............        287,747
 47,000 Sumitomo Marine & Fire Insurance Co. ...................        280,764
107,000 Tokio Marine & Fire Insurance Co. ......................      1,000,763
                                                                   ------------
                                                                      1,569,274
                                                                   ------------
        Internet Content (0.1%):                                               
 24,000 Softbank Corp. .........................................        603,456
                                                                   ------------
        Jewelry (0.0%):                                                        
 22,000 Citizen Watch Co., Ltd. ................................        141,287
                                                                   ------------
        Leasing (0.1%):                                                        
 32,000 Yamato Transport Co., Ltd. .............................        622,675
                                                                   ------------
        Machine-Diversified (0.0%):                                            
 10,000 Kurita Water Industries Ltd. ...........................        139,333
                                                                   ------------
        Machinery & Equipment (0.7%):                                          
 24,000 Amada Co., Ltd. ........................................        121,268
 19,000 Daikin Industries Ltd. .................................        371,995
 21,000 Ebara Corp. ............................................        150,672
 67,000 Komatsu Ltd. ...........................................        275,231
 98,000 Kubota Corp. ...........................................        386,881
 28,000 Minebea Co., Ltd. ......................................        164,797
232,000 Mitsubishi Heavy Industries Ltd. .......................        878,727
  4,000 Nidec Corp. ............................................        181,293
 39,000 NSK Ltd. ...............................................        148,342
 13,000 Tokyo Electron Ltd. ....................................        754,721
                                                                   ------------
                                                                      3,433,927
                                                                   ------------

Continued 

61

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
Japan (continued)                                                            
        Manufacturing -- Capital Goods (0.3%):                               
 26,000 Fujikura Ltd. ........................................   $    146,572
  8,000 Kokuyo Co. ...........................................         83,280
 12,000 Makita Corp. .........................................         70,724
 16,000 Murata Manufacturing Co., Ltd. .......................      1,024,978
                                                                 ------------
                                                                    1,325,554
                                                                 ------------
        Manufacturing -- Consumer Goods (0.9%):                              
 62,000 Canon, Inc. ..........................................      2,095,120
 36,000 Fuji Photo Film Co., Ltd. ............................      1,424,080
 25,000 Konica Corp. .........................................        165,358
 26,000 Nikon Corp. ..........................................        218,609
  8,700 Sega Enterprises Ltd. (b).............................        137,173
 10,000 Shimano Inc. .........................................        127,482
                                                                 ------------
                                                                    4,167,822
                                                                 ------------
        Material Handling (0.0%):                                            
  3,000 Fuji Machine Mfg. Co. ................................         48,166
                                                                 ------------
        Medical Supplies (0.1%):                                             
 19,000 Olympus Optical Co., Ltd. ............................        286,337
 15,000 Terumo Corp. .........................................        276,264
                                                                 ------------
                                                                      562,601
                                                                 ------------
        Merchandising (0.5%):                                                
 29,000 Ito-Yokado Co., Ltd. .................................      1,274,898
 23,000 JUSCO Co., Ltd. ......................................        563,578
 26,000 Marui Co., Ltd. ......................................        365,805
                                                                 ------------
                                                                    2,204,281
                                                                 ------------
        Metals (0.2%):                                                       
224,000 Kawasaki Steel Corp. .................................        238,564
 80,000 Mitsubishi Materials Corp. ...........................        158,231
467,000 Nippon Steel Corp. ...................................        661,904
250,000 Sumitomo Metal Industries Ltd. (b)....................        132,126
                                                                 ------------
                                                                    1,190,825
                                                                 ------------
        Metals & Mining (0.1%):                                              
 39,000 Mitsui Mining & Smelting Co. .........................        146,156
 41,000 Sumitomo Metal Mining Co. ............................        153,322
                                                                 ------------
                                                                      299,478
                                                                 ------------
        Miscellaneous Materials & Commodities (0.1%):                        
 81,000 Asahi Glass Co., Ltd. ................................        582,460
                                                                 ------------
        Oil & Gas (0.1%):                                                    
101,800 Nippon Oil Co., Ltd. .................................        539,648
                                                                 ------------
        Packaging (0.0%):                                                    
 16,000 Toyo Seikan Kaisha Ltd. ..............................        238,436
                                                                 ------------
        Paper Products (0.1%):                                               
     66 Nippon Unipac Holding.................................        358,855
                                                                 ------------
        Pharmaceuticals (0.6%):                                              
 18,000 Chugai Pharmaceutical Co., Ltd. ......................        253,682
 19,000 Dai-Ichi Pharmaceuticals..............................        422,203
 21,000 Eisai Co., Ltd. ......................................        440,581
                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
Japan (continued)                                                            
       Pharmaceuticals (continued)                                           
28,000 Meiji Seika Co. .......................................   $    139,685
25,000 Shionogi & Co., Ltd. ..................................        493,471
24,000 Taisho Pharmaceutical Co. .............................        476,615
23,000 Yamanouchi Pharmaceutical Co., Ltd. ...................        637,249
                                                                 ------------
                                                                    2,863,486
                                                                 ------------
       Printing & Publishing (0.2%):                                         
53,000 Dai Nippon Printing Co., Ltd. .........................        604,778
49,000 Toppan Printing Co., Ltd. .............................        477,912
                                                                 ------------
                                                                    1,082,690
                                                                 ------------
       Railroads (0.1%):                                                     
    85 Central Japan Railway Co. .............................        501,639
                                                                 ------------
       Real Estate (0.3%):                                                   
90,000 Mitsubishi Estate Co., Ltd. ...........................        843,926
57,000 Mitsui Fudosan Co., Ltd. ..............................        539,507
                                                                 ------------
                                                                    1,383,433
                                                                 ------------
       Retail Stores (0.1%):                                                 
34,000 Mitsukoshi Ltd. .......................................        123,606
 7,000 Skylark Co., Ltd. .....................................        195,066
22,000 Takashimaya Co., Ltd. .................................        165,422
                                                                 ------------
                                                                      484,094
                                                                 ------------
       Retail -- General Merchandise (0.1%):                                 
12,300 Credit Saison Co., Ltd. ...............................        286,618
                                                                 ------------
       Retail -- Special Line (0.0%):                                        
14,000 Uny Co., Ltd. .........................................        145,179
                                                                 ------------
       Services (0.2%):                                                      
17,000 Secom Co., Ltd. .......................................        918,877
                                                                 ------------
       Software & Computer Services (0.1%):                                  
 8,000 Konami Corp., Ltd. ....................................        354,258
                                                                 ------------
       Storage (0.0%):                                                       
10,000 Mitsubishi Logistics Corp. ............................         90,166
                                                                 ------------
       Telecommunications (0.6%):                                            
10,000 Nippon Comsys Corp. ...................................        114,830
   500 Nippon Telegraph & Telephone Corp. ....................      2,566,450
                                                                 ------------
                                                                    2,681,280
                                                                 ------------
       Textile Products (0.2%):                                              
23,000 Kuraray Co., Ltd. .....................................        162,811
 6,000 Mitsubishi Rayon Co., Ltd. ............................         19,651
13,000 Onward Kashiyama Co., Ltd. ............................        140,430
63,000 Teijin Ltd. ...........................................        286,546
97,000 Toray Industries, Inc. ................................        322,348
12,000 Wacoal Corp. ..........................................        120,211
                                                                 ------------
                                                                    1,051,997
                                                                 ------------
       Tobacco (0.1%):                                                       
    75 Japan Tobacco, Inc. ...................................        543,519
                                                                 ------------

Continued 

62

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
Japan (continued)                                                            
        Toys (0.2%):                                                         
  6,700 Nintendo Co., Ltd. ...................................   $  1,183,546
                                                                 ------------
        Transportation (0.6%):                                               
    200 East Japan Railway Co. ...............................      1,071,423
123,000 Japan Airlines Co. ...................................        374,277
115,360 Kinki Nippon Railway Co. .............................        443,406
 75,000 Nippon Express Co., Ltd. .............................        304,491
 60,000 Tobu Railway Co., Ltd. ...............................        184,977
 76,000 Tokyu Corp. ..........................................        426,615
                                                                 ------------
                                                                    2,805,189
                                                                 ------------
        Transportation & Shipping (0.1%):                                    
 17,000 Kamigumi Co., Ltd. ...................................         88,076
 84,000 Nippon Yusen Kabushiki Kaisha.........................        310,088
                                                                 ------------
                                                                      398,164
                                                                 ------------
        Wholesale & International Trade (0.4%):                              
 93,000 Marubeni Corp. .......................................        142,985
108,000 Mitsubishi Corp. .....................................        845,799
109,000 Mitsui & Co., Ltd. ...................................        724,452
 74,000 Sumitomo Corp. .......................................        443,239
                                                                 ------------
                                                                    2,156,475
                                                                 ------------
        Wire & Cable Products (0.1%):                                        
 46,000 Furukawa Electric Co., Ltd. ..........................        353,249
                                                                 ------------
                                                                  103,624,474
                                                                 ------------
Netherlands (3.3%):                                                          
        Banking (0.2%):                                                      
 65,335 ABN Amro Holding NV...................................      1,154,161
                                                                 ------------
        Electronic Components/Instruments (0.3%):                            
 60,154 Koninklijke Royal Philips Electronics NV..............      1,681,588
                                                                 ------------
        Food Products (0.3%):                                                
 26,770 Unilever NV -- CVA....................................      1,593,899
                                                                 ------------
        Insurance (0.9%):                                                    
 55,770 Aegon NV..............................................      1,557,570
 91,550 ING Groep NV..........................................      2,982,993
                                                                 ------------
                                                                    4,540,563
                                                                 ------------
        Medical -- Biomedical/Genetic (0.1%):                                
 12,800 QIAGEN NV (b).........................................        273,265
                                                                 ------------
        Oil & Gas (1.3%):                                                    
100,300 Royal Dutch Petroleum Co. ............................      5,849,048
                                                                 ------------
        Retail-Special Line (0.2%):                                          
 38,295 Ahold.................................................      1,150,606
                                                                 ------------
                                                                   16,243,130
                                                                 ------------
New Zealand (0.2%):                                                          
        Airports Development (0.0%):                                         
 31,800 Auckland International Airport Ltd. ..................         45,370
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
New Zealand (continued)                                                        
        Appliances & Household Products (0.0%):                                
 14,100 Fisher & Paykel Industries Ltd. ........................   $     75,076
                                                                   ------------
        Building Products (0.0%):                                              
 43,500 Fletcher Building Ltd. .................................         48,112
                                                                   ------------
        Electric Integrated (0.0%):                                            
 43,700 Contact Energy Ltd. ....................................         59,114
                                                                   ------------
        Financial Services (0.0%):                                             
  6,900 Baycorp Holdings Ltd. ..................................         33,988
 12,100 Tower Ltd. .............................................         25,422
                                                                   ------------
                                                                         59,410
                                                                   ------------
        Forest Products (0.0%):                                                
130,281 Carter Holt Harvey Ltd. ................................        100,169
                                                                   ------------
        Hotel/Gaming (0.0%):                                                   
 12,600 Sky City Ltd. (b).......................................         59,059
                                                                   ------------
        Publishing (0.0%):                                                     
 19,000 Independent Newspapers Ltd. (b).........................         29,686
                                                                   ------------
        Retail-General Merchandise (0.0%):                                     
 26,900 The Warehouse Group Ltd. ...............................         61,937
                                                                   ------------
        Telecommunications (0.2%):                                             
187,265 Telecom Corp. of New Zealand Ltd. ......................        412,698
                                                                   ------------
                                                                        950,631
                                                                   ------------
Norway (0.8%):                                                                 
        Banking (0.1%):                                                        
 83,500 Den Norske Bank ASA.....................................        365,509
                                                                   ------------
        Computer Software (0.0%):                                              
  8,000 Merkantildata ASA (b)...................................         12,432
                                                                   ------------
        Diversified (0.3%):                                                    
 26,650 Norsk Hydro ASA.........................................      1,130,109
                                                                   ------------
        Insurance (0.2%):                                                      
 49,600 Storebrand ASA..........................................        385,382
                                                                   ------------
        Manufacturing (0.0%):                                                  
  9,900 Tomra Systems ASA.......................................        123,507
                                                                   ------------
        Manufacturing -- Consumer Goods (0.2%):                                
 38,200 Orkla ASA -- Class A....................................        710,663
                                                                   ------------
        Metals (0.0%):                                                         
 10,850 Elkem ASA...............................................        181,666
                                                                   ------------
        Oil & Gas (0.0%):                                                      
  9,700 Petroleum Geo-Services ASA (b)..........................        101,905
                                                                   ------------
        Paper Products (0.0%):                                                 
 14,800 Norske Skogsindustrier ASA..............................        233,225
                                                                   ------------
        Printing & Publishing (0.0%):                                          
  9,400 Schibsted ASA...........................................         94,638
                                                                   ------------

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Shares                   Security Description                       Value    
------                   --------------------                       -----    
                                                                             

COMMON STOCKS (continued)                                                    
Norway (continued)                                                           
        Telecommunications -- Services & Equipment (0.0%):                   
 48,800 Telenor ASA...........................................   $    209,343
                                                                 ------------
        Transport -- Marine (0.0%):                                          
  8,100 Frontline Ltd. .......................................        119,223
                                                                 ------------
        Transportation (0.0%):                                               
  6,200 Bergesen d.y. ASA, Class A............................        110,255
                                                                 ------------
                                                                    3,777,857
                                                                 ------------
Portugal (0.7%):                                                             
        Banking (0.3%):                                                      
179,743 Banco Commercial Portuguese (b).......................        693,542
 19,200 Banco Espirito Santo..................................        235,187
 80,200 BPI, SGPS, SA.........................................        190,164
                                                                 ------------
                                                                    1,118,893
                                                                 ------------
        Building Products -- Cement/Aggregate (0.1%):                        
 15,100 CIMPOR-Cimentos de Portugal, SGPS, SA.................        306,381
                                                                 ------------
        Electrical & Electronic (0.1%):                                      
253,400 Electricidade de Portugal SA..........................        669,573
                                                                 ------------
        Retail / Specialty (0.0%):                                           
125,400 Sonae, SGPS, SA.......................................         89,970
                                                                 ------------
        Telecommunications (0.1%):                                           
 90,700 Portugal Telecom, SGPS, SA............................        649,943
                                                                 ------------
        Transportation (0.1%):                                               
 40,300 Brisa Auto-Estradas...................................        356,837
                                                                 ------------
                                                                    3,191,597
                                                                 ------------
Singapore (0.9%):                                                            
        Airlines (0.1%):                                                     
 80,000 Singapore Airlines Ltd. ..............................        563,865
                                                                 ------------
        Banking (0.3%):                                                      
 89,987 Development Bank of Singapore Ltd.....................        674,210
 68,959 Oversea-Chinese Banking Corp., Ltd....................        436,292
 63,921 United Overseas Bank Ltd. ............................        372,490
                                                                 ------------
                                                                    1,482,992
                                                                 ------------
        Computer (0.0%):                                                     
  9,000 Creative Technology Ltd. .............................         75,422
                                                                 ------------
        Electronic Components/Instruments (0.1%):                            
 90,000 Chartered Semiconductor Manufacturing Ltd. (b)........        232,760
 15,000 Venture Manufacturing Singapore Ltd. .................        107,390
                                                                 ------------
                                                                      340,150
                                                                 ------------
        Engineering (0.1%):                                                  
200,000 Singapore Technologies Engineering....................        305,242
                                                                 ------------
        Finance (0.0%):                                                      
 29,600 Haw Par Brothers International Ltd. ..................         62,753
                                                                 ------------
                                                                [Download Table]

Shares                    Security Description                       Value    
------                    --------------------                       -----    
                                                                              

COMMON STOCKS (continued)                                                     
Singapore (continued)                                                         
        Printing & Publishing (0.1%):                                         
 31,472 Singapore Press Holdings Ltd. .........................   $    335,357
                                                                  ------------
        Real Estate (0.1%):                                                   
115,000 Capitaland Ltd. .......................................        149,985
 67,600 City Developments Ltd. ................................        230,729
                                                                  ------------
                                                                       380,714
                                                                  ------------
        Telecommunications (0.1%):                                            
519,000 Singapore Telecommunications Ltd. .....................        524,228
                                                                  ------------
        Transportation & Shipping (0.0%):                                     
 47,000 Keppel Corp. ..........................................         94,947
                                                                  ------------
                                                                     4,165,670
                                                                  ------------
Spain (4.0%):                                                                 
        Banking (0.6%):                                                       
357,820 Banco Santander Central Hispanoamericano SA............      3,146,407
                                                                  ------------
        Banking & Finance (0.8%):                                             
303,023 Banco Bilbao Vizcaya...................................      3,709,176
                                                                  ------------
        Beverages & Tobacco (0.1%):                                           
 24,600 Altadis SA.............................................        353,421
                                                                  ------------
        Building -- Heavy Construction (0.0%):                                
  9,000 Fomento De Construc Y Contra...........................        191,194
                                                                  ------------
        Cellular/Wireless Telecommunications (0.2%):                          
125,000 Telefonica Moviles SA (b)..............................        737,147
                                                                  ------------
        Construction (0.0%):                                                  
  3,300 ACS, Actividades de Construccion y Servicios SA........         86,620
                                                                  ------------
        Engineering (0.1%):                                                   
 20,263 Autopistas Concesionaria Espanola SA...................        196,793
 11,700 Grupo Dragados SA......................................        145,365
                                                                  ------------
                                                                       342,158
                                                                  ------------
        Food Products (0.0%):                                                 
 14,400 Telepizza SA (b).......................................         23,561
  2,564 Viscofan Industria Navarra de Envolturas Celulosicassa                
        SA.....................................................         11,037
                                                                  ------------
                                                                        34,598
                                                                  ------------
        Gas & Electric Utility (0.7%):                                        
 84,180 Endesa SA..............................................      1,373,637
 35,800 Gas Natural SA.........................................        625,526
 64,024 Iberdrola SA...........................................        841,389
 23,866 Union Electrica Fenosa SA..............................        435,381
                                                                  ------------
                                                                     3,275,933
                                                                  ------------
        Hotels & Lodging (0.0%):                                              
 13,200 Sol Melia SA...........................................        115,494
                                                                  ------------
        Insurance (0.0%):                                                     
  4,700 Corporacion Mapfre.....................................        102,807
                                                                  ------------

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Spain (continued)                                                              
        Metals (0.0%):                                                         
  3,900 Acerinox SA.............................................   $    107,829
                                                                   ------------
        Oil & Gas (0.3%):                                                      
 96,294 Repsol SA...............................................      1,592,374
                                                                   ------------
        Pharmaceuticals (0.0%):                                                
  8,000 Zeltia SA (b)...........................................         64,116
                                                                   ------------
        Real Estate (0.0%):                                                    
  4,268 Metrovacesa SA..........................................         63,185
  8,683 Vallehermoso SA.........................................         56,143
                                                                   ------------
                                                                        119,328
                                                                   ------------
        Telecommunications (1.2%):                                             
422,761 Telefonica De Espana (b)................................      5,148,947
                                                                   ------------
        Water Utility (0.0%):                                                  
 10,900 Aquas De Barcelona......................................        154,213
                                                                   ------------
                                                                     19,281,762
                                                                   ------------
Sweden (2.4%):                                                                 
        Automotive (0.1%):                                                     
  8,800 Volvo AB, Series A......................................        133,326
 23,600 Volvo AB, Series B......................................        370,882
                                                                   ------------
                                                                        504,208
                                                                   ------------
        Banking (0.3%):                                                        
210,500 Nordic Baltic Holding AB................................      1,178,626
                                                                   ------------
        Banking & Finance (0.2%):                                              
 52,100 Skandiaviska Enskilda Banken, Series A..................        475,572
 47,100 Svenska Handelsbanken, Series A.........................        687,004
                                                                   ------------
                                                                      1,162,576
                                                                   ------------
        Building -- Heavy Construction (0.1%):                                 
 35,600 Skanska AB -- Class B...................................        328,309
                                                                   ------------
        Computer Services (0.0%):                                              
 29,000 WM-Data AB, Series B....................................         71,773
                                                                   ------------
        Consumer Goods & Services (0.1%):                                      
 27,300 Securitas AB, Series B..................................        507,384
                                                                   ------------
        Finance (0.0%):                                                        
  5,400 OM Gruppen AB...........................................         66,061
                                                                   ------------
        Forest Products (0.1%):                                                
 18,200 Svenska Cellusoa AB, Series B...........................        404,194
                                                                   ------------
        Insurance (0.1%):                                                      
 75,700 Skandia Forsakrings AB..................................        698,118
                                                                   ------------
        Machinery & Equipment (0.0%):                                          
 11,100 Atlas Copco AB, Series A................................        235,546
                                                                   ------------
                                                                [Download Table]

Shares                    Security Description                        Value    
------                    --------------------                        -----    
                                                                               

COMMON STOCKS (continued)                                                      
Sweden (continued)                                                             
        Manufacturing -- Consumer Goods (0.2%):                                
 26,300 Assa Abloy AB, Series B.................................   $    367,527
 28,300 Electrolux AB, Series B.................................        424,770
                                                                   ------------
                                                                        792,297
                                                                   ------------
        Medical Products (0.0%):                                               
 16,000 Gambro AB, Series A.....................................        101,632
                                                                   ------------
        Paper Products (0.0%):                                                 
  6,500 AssiDoman AB............................................        140,685
                                                                   ------------
        Retail-Special Line (0.2%):                                            
 59,500 Hennes & Mauritz AB, Series B...........................      1,105,837
                                                                   ------------
        Telecommunication Equipment (0.7%):                                    
552,900 Telefonaktiebolaget Lm Ericsson AB......................      2,991,723
                                                                   ------------
        Telecommunications (0.2%):                                             
  7,300 Netcom AB, Series B (b).................................        239,061
110,000 Telia AB................................................        564,152
                                                                   ------------
                                                                        803,213
                                                                   ------------
        Television (0.0%):                                                     
  4,500 Modern Times Group MTG AB, Class B (b)..................        106,714
                                                                   ------------
        Tools (0.1%):                                                          
 19,400 Sandvik AB..............................................        387,030
                                                                   ------------
                                                                     11,585,926
                                                                   ------------
Switzerland (3.7%):                                                            
        Banking (0.5%):                                                        
 50,652 UBS AG Registered.......................................      2,297,525
                                                                   ------------
        Engineering (0.1%):                                                    
 42,392 ABB Ltd.................................................        469,978
                                                                   ------------
        Finance (0.4%):                                                        
 10,420 Credit Suisse Group, Registered.........................      1,764,486
                                                                   ------------
        Food Products (0.7%):                                                  
 16,470 Nestle SA, Registered...................................      3,527,930
                                                                   ------------
        Insurance (0.4%):                                                      
    505 Swiss Reinsurance Co., Registered.......................      1,058,046
  2,939 Zurich Financial Services AG............................        974,942
                                                                   ------------
                                                                      2,032,988
                                                                   ------------
        Pharmaceuticals (1.4%):                                                
116,460 Novartis AG, Registered.................................      4,052,061
 26,800 Roche Holding AG........................................      2,040,259
  5,600 Roche Holding AG........................................        479,816
                                                                   ------------
                                                                      6,572,136
                                                                   ------------
        Telecommunications (0.2%):                                             
  4,000 Swisscom AG, Registered.................................      1,099,964
                                                                   ------------
                                                                     17,765,007
                                                                   ------------

Continued 

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             International Growth Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

 Shares                    Security Description                       Value    
 ------                    --------------------                       -----    
                                                                               

COMMON STOCKS (continued)                                                      
United Kingdom (13.2%):                                                        
          Banking (2.3%):                                                      
   60,437 Abbey National PLC....................................   $    950,936
   75,220 Barclays PLC..........................................      2,233,069
  454,364 HSBC Holdings PLC.....................................      5,261,466
  113,277 Royal Bank of Scotland Group PLC......................      2,583,100
  158,277 Royal Bank of Scotland Group PLC (b)..................        199,637
                                                                   ------------
                                                                     11,228,208
                                                                   ------------
          Beverages & Tobacco (0.3%):                                          
  161,412 Diageo PLC............................................      1,656,334
                                                                   ------------
          Broadcasting/Cable (0.2%):                                           
   78,500 British Sky Broadcasting Group PLC (b)................        882,726
                                                                   ------------
          Distribution (0.2%):                                                 
   50,000 BG PLC................................................        199,708
  172,050 Centrica PLC..........................................        544,361
                                                                   ------------
                                                                        744,069
                                                                   ------------
          Electric Utility (0.0%):                                             
   30,000 Scottish Power PLC....................................        208,865
                                                                   ------------
          Energy (2.0%):                                                       
1,152,046 BP Amoco PLC..........................................      9,588,753
                                                                   ------------
          Finance (0.8%):                                                      
   95,610 Halifax PLC...........................................      1,107,149
  252,906 Lloyds TSB Group PLC..................................      2,597,004
                                                                   ------------
                                                                      3,704,153
                                                                   ------------
          Food & Household Products (0.4%):                                    
   30,000 Cadbury Schweppes PLC.................................        204,589
  177,810 Unilever PLC..........................................      1,517,968
                                                                   ------------
                                                                      1,722,557
                                                                   ------------
          Food Service -- Catering (0.1%):                                     
   84,573 Compass Group PLC.....................................        632,806
                                                                   ------------
          Health & Personal Care (0.8%):                                       
   78,632 Zeneca Group PLC......................................      3,902,182
                                                                   ------------
          Insurance (0.7%):                                                    
   95,441 CGNU PLC..............................................      1,342,554
   84,633 Prudential Corp., PLC.................................      1,040,950
  292,343 Tesco PLC.............................................      1,043,710
                                                                   ------------
                                                                      3,427,214
                                                                   ------------
          Metals (0.2%):                                                       
   46,300 Rio Tinto PLC, Registered.............................        777,990
                                                                   ------------
          Oil -- Comp Intergrated (0.6%):                                      
  340,000 Shell Transportation & Trading Co., PLC...............      2,875,935
                                                                   ------------
          Pharmaceuticals (1.7%):                                              
  292,871 GlaxoSmithKline PLC...................................      8,460,764
                                                                   ------------
          Printing & Publishing (0.3%):                                        
   37,573 Pearson PLC...........................................        576,193
   60,627 Reuters Group PLC.....................................        735,317
                                                                   ------------
                                                                      1,311,510
                                                                   ------------
                                                                [Download Table]

  Shares                   Security Description                      Value    
  ------                   --------------------                      -----    
                                                                              

COMMON STOCKS (continued)                                                     
United Kingdom (continued)                                                    
           Telecom Equipment (0.1%):                                          
   180,203 Marconin PLC........................................   $    255,543
                                                                  ------------
           Telecommunications (2.4%):                                         
   375,088 British Telecommunications PLC......................      2,607,414
    80,000 Cable & Wireless PLC................................        395,639
    25,000 COLT Telecom Group PLC (b)..........................        131,120
 4,123,218 Vodafone Group PLC..................................      9,020,366
                                                                  ------------
                                                                    12,154,539
                                                                  ------------
           Tobacco (0.1%):                                                    
    70,000 British American Tobacco PLC........................        563,671
                                                                  ------------
                                                                    64,097,819
                                                                  ------------
           Total Common Stocks.................................    470,028,152
                                                                  ------------
PREFERRED STOCKS (0.4%):                                                      
Australia (0.3%):                                                             
           Printing & Publishing (0.3%):                                      
   167,829 News Corp., Ltd.....................................      1,319,650
                                                                  ------------
Germany (0.1%):                                                               
Investment Companies (0.1%):                                                  
     5,400 MLP AG-Vorzug.......................................        432,314
                                                                  ------------
New Zealand (0.0%):                                                           
           Forest Products (0.0%):                                            
   187,900 Fletcher Challenge Forests Ltd. (b).................         26,267
                                                                  ------------
           Total Preferred Stocks..............................      1,778,231
                                                                  ------------
RIGHTS (0.0%):                                                                
Spain (0.0%):                                                                 
           Public Thoroughfares (0.0%):                                       
    20,263 Autopistas, Concesionaria Espanola SA...............          9,751
                                                                  ------------
           Total Rights........................................          9,751
                                                                  ------------
INVESTMENT COMPANIES (2.2%):                                                  
United States (2.2%):                                                         
10,748,755 Federated Prime Value Obligations Money Market                     
           Fund................................................     10,748,755
                                                                  ------------
Total Investment Companies......................................    10,748,755
                                                                  ------------
Total Investments (Cost $509,087,178) (a) -- 99.3%..............   482,564,889
Other assets in excess of liabilities -- 0.7%...................     3,224,994
                                                                  ------------
Net Assets -- 100.0%............................................  $485,789,883
                                                                  ============

-------                                                                         
(a)  Represents cost for financial reporting purposes and differs from cost     
  basis for Federal income tax purposes by the amount of losses recognized
for financial reporting in excess of Federal income tax reporting of  
 $1,210,001 and by the amount of market to market adjustment for passive
 foreign investment companies of $2,084,595. Cost for Federal income tax
  purposes differs from value by net unrealized depreciation of securities
as follows:                                                           

                                                                [Download Table]
                                                                            
Unrealized appreciation...................................... $  70,689,017 
Unrealized depreciation......................................  (100,505,902)
                                                              ------------- 
Net unrealized depreciation.................................. $ (29,816,885)
                                                              ============= 

(b)  Non-income producing security.                                             

See Notes to Financial Statements.

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

ASSET BACKED SECURITIES (7.2%):                                               
           Finance -- Consumer Loans (7.2%):                                  
$5,000,000 Daimler Chrysler Auto Trust, Series 2000-C, Class                  
           A4, 6.85%, 11/6/05..................................   $  5,262,850
 5,000,000 MBNA Master Credit Card Trust,                                     
           7.35%, 7/16/07......................................      5,368,850
 9,500,000 Toyota Auto Receivables Owner Trust, 7.21%,                        
           4/15/07.............................................     10,051,760
                                                                  ------------
           Total Asset Backed Securities.......................     20,683,460
                                                                  ------------
COMMERCIAL PAPER (9.5%):                                                      
           Banking & Finance (2.9%):                                          
 8,500,000 UBS Finance Delaware Inc.,                                         
           3.72%**, 8/16/01....................................      8,486,825
                                                                  ------------
           Chemicals -- Diversified (1.4%):                                   
 4,000,000 E.I. du Pont de Nemours & Co.,                                     
           3.68%**, 8/16/01....................................      3,993,800
                                                                  ------------
           Financial Services -- Diversified (2.8%):                          
 8,000,000 General Electric Capital Co.,                                      
           3.72%**, 8/13/01....................................      7,990,080
                                                                  ------------
           Retail -- Discount (2.4%):                                         
 7,000,000 Wal-Mart Stores, Inc., 3.70%,** 8/13/01.............      6,991,320
                                                                  ------------
           Total Commercial Paper..............................     27,462,025
                                                                  ------------
CORPORATE NOTES & BONDS (46.9%):                                              
           Automotive (1.7%):                                                 
 5,000,000 Ford Motor Co., 7.45%, 7/16/31......................      5,037,500
                                                                  ------------
           Banking (16.5%):                                                   
 2,700,000 Bank of Montreal -- Chicago,                                       
           7.80%, 4/1/07.......................................      2,963,250
 2,000,000 Bank of New York, 8.50%, 12/15/04...................      2,202,500
 2,000,000 BankAmerica Corp., 7.20%, 4/15/06...................      2,132,500
 2,000,000 Chase Manhattan Corp., 7.13%, 3/1/05................      2,105,000
 4,125,000 First Union Corp., 7.00%, 3/15/06...................      4,331,250
 2,000,000 Fleet/Norstar Group, 8.63%, 1/15/07.................      2,255,000
 2,000,000 HSBC New York Corp., 7.00%, 3/22/11.................      2,052,500
 2,000,000 Midland Bank PLC, 7.63%, 6/15/06....................      2,157,500
 3,000,000 National City Bank, 7.25%, 7/15/10..................      3,120,000
 5,000,000 NCNB Corp., 10.20%, 7/15/15.........................      6,456,250
 5,000,000 Northern Trust Corp., 7.10%, 8/1/09.................      5,243,750
 5,000,000 PNC Funding Corp., 6.13%, 2/15/09...................      4,968,750
 2,000,000 Swiss Bank Corp. -- New York,                                      
           7.38%, 7/15/15......................................      2,162,500
 5,000,000 Washington Mutual Bank, 6.88%, 6/15/11..............      5,153,255
                                                                  ------------
                                                                    47,304,005
                                                                  ------------
           Brokers (2.6%):                                                    
 5,000,000 Lehman Brothers Holdings, Inc.,                                    
           8.75%, 3/15/05......................................      5,506,250
 2,000,000 Salomon Smith Barney Holdings,                                     
           5.88%, 3/15/06......................................      2,022,500
                                                                  ------------
                                                                     7,528,750
                                                                  ------------
           Diversified Manufacturing (1.8%):                                  
 5,000,000 Tyco International Group SA,                                       
           6.75%, 2/15/11......................................      5,112,500
                                                                  ------------
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

CORPORATE NOTES & BONDS (continued)                                           
           Finance (11.5%):                                                   
$4,500,000 Boeing Capital Corp., MTN,                                         
           6.35%, 11/15/07.....................................   $  4,640,625
 2,000,000 Discover Credit, 9.26%, 3/20/12.....................      2,412,500
 5,000,000 Ford Motor Credit Corp., 9.03%, 12/30/09, Callable                 
           12/30/04 @ 100......................................      5,537,500
 5,000,000 General Motors Acceptance Corp.,                                   
           7.25%, 3/2/11.......................................      5,250,000
 3,500,000 Great Western Financial Trust II,                                  
           8.21%, 2/1/27, Callable 2/1/07 @ 104................      3,539,375
 3,000,000 Household Finance Corp.,                                           
           6.50%, 11/15/08.....................................      3,055,314
 4,300,000 Qwest Capital Funding, 7.25%, 2/15/11 (b)...........      4,375,250
 4,000,000 St. Paul Cos., Inc., 7.25%, 8/9/07..................      4,240,000
                                                                  ------------
                                                                    33,050,564
                                                                  ------------
           Gas Transmission (2.7%):                                           
 5,000,000 Enron Corp., 6.40%, 7/15/06.........................      5,056,250
 2,500,000 Enserch Corp., 7.13%, 6/15/05.......................      2,600,000
                                                                  ------------
                                                                     7,656,250
                                                                  ------------
           Industrial Goods & Services (1.1%):                                
 3,000,000 Engelhard Corp., 7.38%, 8/1/06......................      3,150,000
                                                                  ------------
           Insurance (0.7%):                                                  
 2,000,000 Travelers Capital III, 7.63%, 12/1/36...............      2,022,500
                                                                  ------------
           Machinery & Equipment (0.5%):                                      
 2,000,000 Case Corp., 7.25%, 1/15/16..........................      1,432,500
                                                                  ------------
           Multimedia (2.0%):                                                 
 5,000,000 AOL Time Warner, Inc., 9.13%, 1/15/13...............      5,875,000
                                                                  ------------
           Paper & Related Products (1.4%):                                   
 4,000,000 Westvaco Corp., 7.10%, 11/15/09.....................      3,990,000
                                                                  ------------
           Retail (1.5%):                                                     
 4,245,565 Fred Meyer, Inc., Lease Trust,                                     
           8.50%, 7/15/17 (b)..................................      4,431,308
                                                                  ------------
           Retail -- Major Department Stores (1.7%):                          
 5,000,000 Target Corp., 7.00%, 7/15/31........................      5,025,000
                                                                  ------------
           Utilities (1.2%):                                                  
 3,833,000 Pacific Gas & Electric, 6.25%, 3/1/04...............      3,488,030
                                                                  ------------
           Total Corporate Notes & Bonds.......................    135,103,907
                                                                  ------------
MUNICIPAL BONDS -- TAXABLE (0.7%):                                            
           California (0.7%):                                                 
 2,000,000 San Bernardino County, Financing Authority Pension                 
           Obligation Revenue, 6.99%, 8/1/10, (Insured by                     
           MBIA)...............................................      2,125,000
                                                                  ------------
           Total Municipal Bonds -- Taxable....................      2,125,000
                                                                  ------------

Continued 

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(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

 Shares or                                                                    
 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

U.S. GOVERNMENT AGENCY OBLIGATIONS (22.5%):                                   
            Fannie Mae (16.3%):                                               
$ 9,000,000 7.00%, 7/15/05.....................................   $  9,663,750
  2,921,547 6.05%, 12/1/08.....................................      2,969,928
 10,400,000 6.63%, 9/15/09.....................................     11,037,000
 12,000,000 6.50%, 5/1/16......................................     12,196,800
 10,000,000 7.13%, 1/15/30.....................................     11,063,500
                                                                  ------------
                                                                    46,930,978
                                                                  ------------
            Freddie Mac (6.2%):                                               
  2,500,000 7.22%, 6/14/06.....................................      2,722,675
 15,000,000 6.50%, 6/1/31 (c)..................................     15,018,750
                                                                  ------------
                                                                    17,741,425
                                                                  ------------
            Total U.S. Government Agency Obligations...........     64,672,403
                                                                  ------------
U.S. GOVERNMENT OBLIGATIONS (15.1%):                                          
            U.S. Treasury Bonds (13.2%):                                      
  6,200,000 7.25%, 5/15/04.....................................      6,707,160
  2,700,000 6.75%, 5/15/05.....................................      2,918,403
  1,000,000 6.13%, 8/15/07.....................................      1,071,580
  5,100,000 10.38%, 11/15/12, Callable 11/15/07 @ 100..........      6,579,801
  2,650,000 7.50%, 11/15/16....................................      3,189,090
 13,500,000 8.00%, 11/15/21....................................     17,372,744
                                                                  ------------
                                                                    37,838,778
                                                                  ------------
            U.S. Treasury Notes (1.9%):                                       
  5,000,000 7.00%, 7/15/06.....................................      5,524,050
                                                                  ------------
            Total U.S. Government Obligations..................     43,362,828
                                                                  ------------
INVESTMENT COMPANIES (6.4%):                                                  
    107,708 Dreyfus Cash Management Money Market Fund..........        107,708
 18,250,571 Federated Prime Value Obligations Money Market                    
            Fund...............................................     18,250,571
                                                                  ------------
            Total Investment Companies.........................     18,358,279
                                                                  ------------
Total Investments (Cost $302,652,298) (a) -- 108.3%.............   311,767,902
Liabilities in excess of other assets -- (8.3)%.................  (23,783,441)
                                                                  ------------
Net Assets -- 100.0%............................................  $287,984,461
                                                                  ============

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

                                                                [Download Table]
                                                                             
Unrealized appreciation.......................................... $9,937,961 
Unrealized depreciation..........................................   (822,357)
                                                                  ---------- 
Net unrealized appreciation...................................... $9,115,604 
                                                                  ========== 

(b)  Rule 144A, Section 4(2) or other security which is restricted as to resale 
to institutional investors. The Fund's advisor has determined this    
security to be liquid based on procedures approved by the Board of    
Trustees.                                                             
(c)  When-issued security.                                                      
**  Effective yield at purchase.                                                
MBIA -- Municipal Bond Insurance Association                                    
MTN -- Medium Term Note                                                         
PLC -- Public Limited Company (British)                                         
SA -- Sociedad Anonima (Spanish Corporation)                                    

See Notes to Financial Statements.

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          Intermediate Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

ASSET BACKED SECURITIES (3.9%):                                               
            Finance -- Consumer Loans (3.9%):                                 
$ 5,000,000 Daimler Chrysler Auto Trust, Series 2000-C, Class                 
            A4, 6.85%, 11/6/05.................................   $  5,262,850
  5,000,000 MBNA Master Credit Card Trust, Series 1998-A, Class               
            A, 3.94%*, 8/15/01.................................      5,004,900
 10,000,000 Mellon Residential Funding Corp.,                                 
            6.92%, 3/25/30.....................................     10,323,420
  5,000,000 Toyota Auto Receivables Owner Trust, 7.21%,                       
            4/15/07............................................      5,290,400
                                                                  ------------
            Total Asset Backed Securities......................     25,881,570
                                                                  ------------
COMMERCIAL PAPER (4.8%):                                                      
            Banking & Finance (2.3%):                                         
 15,200,000 UBS Finance Delaware Inc.,                                        
            3.72%**, 8/16/01...................................     15,176,440
                                                                  ------------
            Financial Services -- Diversified (2.5%):                         
 17,000,000 General Electric Capital Co.,                                     
            3.72%**, 8/13/01...................................     16,978,920
                                                                  ------------
            Total Commercial Paper.............................     32,155,360
                                                                  ------------
CORPORATE NOTES & BONDS (44.5%):                                              
            Banking (15.6%):                                                  
  5,000,000 Amsouth Bancorporation,                                           
            7.75%, 5/15/04.....................................      5,312,500
 10,000,000 Bank of America Corp., 7.40%, 1/15/11..............     10,687,500
  6,000,000 Bank of Montreal-Chicago,                                         
            7.80%, 4/1/07......................................      6,585,000
 10,000,000 BB&T Corp., 7.25%, 6/15/07.........................     10,362,500
 10,000,000 First Union Corp., 7.55%, 8/18/05..................     10,725,000
  5,000,000 J.P. Morgan & Co., 7.63%, 9/15/04..................      5,393,750
  7,000,000 Key Bank NA, 7.00%, 2/1/11.........................      7,122,500
  5,000,000 MBNA American Bank NA,                                            
            7.25%, 9/15/02.....................................      5,118,750
  5,000,000 National City Bank, 6.25%, 3/15/11.................      4,837,500
  5,000,000 NCNB Corp., 9.38%, 9/15/09.........................      5,875,000
  5,000,000 Northern Trust Corp., 7.10%, 8/1/09................      5,243,750
  5,000,000 Norwest Corp., MTN, 6.50%, 6/1/05..................      5,162,500
  8,000,000 PNC Funding Corp., 6.13%, 2/15/09..................      7,950,000
  5,000,000 Washington Mutual Bank,                                           
            6.88%, 6/15/11.....................................      5,153,255
 10,000,000 Wells Fargo Bank, 6.45%, 2/1/11....................     10,125,000
                                                                  ------------
                                                                   105,654,505
                                                                  ------------
            Brokers (2.1%):                                                   
  8,500,000 Donaldson Lufkin Jenrette,                                        
            5.88%, 4/1/02......................................      8,606,250
  5,000,000 Salomon Smith Barney, 7.13%, 10/1/06...............      5,331,250
                                                                  ------------
                                                                    13,937,500
                                                                  ------------
            Diversified Manufacturing (1.4%):                                 
  9,500,000 Tyco International Group SA,                                      
            6.75%, 2/15/11.....................................      9,713,750
                                                                  ------------
            Equipment Rental & Leasing (0.9%):                                
  6,000,000 Caterpillar Financial Asset Trust,                                
            4.85%, 4/25/07.....................................      5,999,335
                                                                  ------------
                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

CORPORATE NOTES & BONDS (continued)                                           
            Finance (15.0%):                                                  
$ 5,000,000 Associates Corp., NA, 6.52%, 10/11/02..............   $  5,137,500
  5,000,000 Boeing Capital Corp., MTN,                                        
            6.35%, 11/15/07....................................      5,156,250
  5,000,000 CIT Group, Inc., 6.50%, 2/7/06.....................      5,168,750
 14,000,000 Citigroup, Inc., 7.25%, 10/1/10....................     14,962,499
  5,000,000 Fleet Financial Group, 7.38%, 12/1/09..............      5,362,500
 10,000,000 Ford Motor Credit Co., 7.38%, 10/28/09.............     10,462,500
  8,400,000 Ford Motor Credit Corp., 9.03%, 12/30/09, Callable                
            12/30/04 @ 100.....................................      9,303,000
  5,000,000 General Electric Capital Corp.,                                   
            6.50%, 12/10/07....................................      5,281,250
  5,000,000 General Motors Acceptance Corp.,                                  
            7.13%, 5/1/03......................................      5,206,250
 10,000,000 General Motors Acceptance Corp.,                                  
            7.25%, 3/2/11......................................     10,500,000
 11,000,000 Household Finance Co., 6.75%, 5/15/11..............     11,247,500
  5,000,000 Household Finance Corp., 8.00%, 8/1/04.............      5,381,250
  8,000,000 Qwest Capital Funding, 7.25%, 2/15/11 (b)..........      8,140,000
                                                                  ------------
                                                                   101,309,249
                                                                  ------------
            Gas Transmission (0.8%):                                          
  5,000,000 Enron Corp., 6.40%, 7/15/06........................      5,056,250
                                                                  ------------
            Insurance (1.6%):                                                 
  5,000,000 St. Paul Companies, Inc., 7.19%, 8/2/07............      5,281,250
  5,100,000 Travelers Group, Inc., 6.88%, 12/15/03.............      5,323,125
                                                                  ------------
                                                                    10,604,375
                                                                  ------------
            Machinery & Equipment (0.4%):                                     
  3,500,000 Case Corp., 7.25%, 1/15/16.........................      2,506,875
                                                                  ------------
            Rental Auto/Equipment (0.7%):                                     
  5,000,000 Hertz Corp., 6.25%, 3/15/09........................      4,887,500
                                                                  ------------
            Telecommunications (1.0%):                                        
  6,000,000 Bell Canada, 7.75%, 4/1/06.........................      6,427,500
                                                                  ------------
            Telephone -- Integrated (3.9%):                                   
 10,000,000 Cox Communications, Inc.,                                         
            7.75%, 11/1/10.....................................     10,650,000
 10,000,000 WorldCom, Inc., 7.88%, 5/15/03.....................     10,400,070
  5,000,000 WorldCom, Inc., 7.50%, 5/15/11.....................      5,075,000
                                                                  ------------
                                                                    26,125,070
                                                                  ------------
            Transportation -- Railroad (1.1%):                                
  7,000,000 Union Pacific Co., 6.34%, 11/25/03.................      7,183,750
                                                                  ------------
            Total Corporate Notes & Bonds......................    299,405,659
                                                                  ------------

Continued 

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          Intermediate Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

 Shares or                                                                    
 Principal                                                                    
  Amount                   Security Description                     Value     
 ---------                 --------------------                     -----     
                                                                              

U.S. GOVERNMENT AGENCY OBLIGATIONS (35.8%):                                   
            Fannie Mae (20.5%):                                               
$18,000,000 3.65%**, 8/13/01..................................   $ 17,977,500 
 52,500,000 6.50%, 8/15/04....................................     55,313,580 
 30,000,000 7.00%, 7/15/05....................................     32,212,500 
 10,000,000 5.50%, 2/15/06....................................     10,162,500 
  7,000,000 6.63%, 10/15/07...................................      7,463,750 
 15,000,000 6.50%, 5/1/16.....................................     15,246,000 
                                                                 ------------ 
                                                                  138,375,830 
                                                                 ------------ 
            Federal Home Loan Bank (0.8%):                                    
  5,000,000 6.49%, 1/8/04.....................................      5,239,600 
                                                                 ------------ 
            Freddie Mac (14.5%):                                              
 20,000,000 7.38%, 5/15/03....................................     21,100,000 
  8,000,000 6.38%, 11/15/03...................................      8,350,000 
  7,500,000 6.25%, 7/15/04....................................      7,837,500 
 10,410,000 8.12%, 1/31/05....................................     11,505,757 
 10,000,000 5.25%, 1/15/06....................................     10,062,500 
  3,000,000 7.22%, 6/14/06....................................      3,267,210 
 35,000,000 6.50%, 6/1/31 (c).................................     35,043,750 
                                                                 ------------ 
                                                                   97,166,717 
                                                                 ------------ 
            Total U.S. Government Agency Obligations..........    240,782,147 
                                                                 ------------ 
U.S. GOVERNMENT OBLIGATIONS (12.3%):                                          
            U.S. Treasury Bonds (8.0%):                                       
 23,800,000 7.25%, 5/15/04....................................     25,746,840 
 25,000,000 7.88%, 11/15/04...................................     27,714,000 
                                                                 ------------ 
                                                                   53,460,840 
                                                                 ------------ 
            U.S. Treasury Notes (4.3%):                                       
  2,150,000 7.50%, 2/15/05....................................      2,371,278 
 24,000,000 7.00%, 7/15/06....................................     26,515,440 
                                                                 ------------ 
                                                                   28,886,718 
                                                                 ------------ 
            Total U.S. Government Obligations.................     82,347,558 
                                                                 ------------ 
INVESTMENT COMPANIES (5.6%):                                                  
    193,410 Dreyfus Cash Management Money Market Fund.........        193,410 
 37,336,994 Federated Prime Value Obligations Money Market                    
            Fund..............................................     37,336,994 
                                                                 ------------ 
            Total Investment Companies........................     37,530,404 
                                                                 ------------ 
Total Investments (Cost $702,398,371) (a) -- 106.9%............   718,102,698 
Liabilities in excess of other assets -- (6.9)%................   (46,064,250)
                                                                 ------------ 
Net Assets -- 100.0%...........................................  $672,038,448 
                                                                 ============ 

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

                                                                [Download Table]
                                                                             
Unrealized appreciation......................................... $16,985,308 
Unrealized depreciation.........................................  (1,280,981)
                                                                 ----------- 
Net unrealized appreciation..................................... $15,704,327 
                                                                 =========== 

(b)  Rule 144A, Section (2) or other security which is restricted as to resale  
to institutional investors. The Fund's advisor has determined this    
security to be liquid based on procedures approved by the Board of    
Trustees.                                                             
(c)  When-issued security.                                                      
*  Variable rate security. Rate present represents rate in effect at July 31,   
2001. Maturity date reflects next rate change date.                       
**  Effective yield at purchase.                                                
MTN -- Medium Term Note                                                         
NV -- Naamloze Vennootschap (Dutch Corporation)                                 
SA -- Sociedad Anonima (Spanish Corporation)                                    

See Notes to Financial Statements.

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        Short Term Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]


Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

ASSET BACKED SECURITIES (7.4%):                                               
           Finance -- Consumer Loans (7.4%):                                  
$4,000,000 American Express Master Trust, Series                              
           1998-1, Class A, 5.90%, 4/15/04.....................   $  4,115,320
 3,000,000 Daimler Chrysler Auto Trust,                                       
           7.23%, 1/6/05.......................................      3,149,741
 5,000,000 MBNA Master Credit Card Trust,                                     
           6.60%, 11/15/04.....................................      5,118,800
 5,000,000 Toyota Auto Receivables Owner Trust, Series 2000-B,                
           Class A3, 6.76%, 8/15/04............................      5,163,950
                                                                  ------------
           Total Asset Backed Securities.......................     17,547,811
                                                                  ------------
CORPORATE NOTES & BONDS (55.6%):                                              
           Banking (14.4%):                                                   
 5,000,000 ABN Amro Bank, 6.63%, 10/31/01......................      5,031,580
 3,000,000 Bear Stearns Co., 6.45%, 8/1/02.....................      3,063,750
 4,000,000 First of America, 8.50%, 2/1/04.....................      4,320,000
 5,000,000 First Union Corp., 6.95%, 11/1/04...................      5,262,500
 3,000,000 Household Bank FSB, 6.50%, 7/15/03..................      3,105,000
 3,500,000 Marshall & Ilsley Corp., 6.38%, 7/15/03.............      3,613,750
 4,500,000 Mellon Funding Corp., 5.75%, 11/15/03...............      4,629,375
 5,000,000 Washington Mutual Bank, 4.38%*, 8/14/01.............      5,000,000
                                                                  ------------
                                                                    34,025,955
                                                                  ------------
           Brokers (2.2%):                                                    
 5,000,000 Merrill Lynch & Co., Inc., 6.64%, 9/19/02...........      5,137,500
                                                                  ------------
           Cable Television (2.2%):                                           
 5,000,000 Tele-Commun, Inc., 8.25%, 1/15/03...................      5,218,750
                                                                  ------------
           Diversified Manufacturing (2.2%):                                  
 5,000,000 Tyco International Group SA,                                       
           6.38%, 2/15/06......................................      5,125,000
                                                                  ------------
           Finance (24.0%):                                                   
 2,500,000 CIT Group, Inc., 5.92%, 1/15/03.....................      2,553,125
 5,000,000 Citigroup, Inc., 6.63%, 9/15/05.....................      5,218,750
 5,000,000 Countrywide Home Loan, 5.25%, 5/22/03...............      5,062,500
 5,000,000 FleetBoston Financial Corp.,                                       
           7.25%, 9/15/05......................................      5,312,500
 5,000,000 Ford Motor Credit Co., 6.88%, 2/1/06................      5,188,035
 5,000,000 General Electric Capital Corp., Series A, 6.33%,                   
           9/17/01.............................................      5,018,750
 5,000,000 General Motors Acceptance Corp.,                                   
           4.19%*, 10/22/01....................................      5,000,000
 4,000,000 Household Netherlands BV,                                          
           6.20%, 12/1/03......................................      4,095,000
 5,000,000 Lehman Brothers Holdings,                                          
           7.25%, 10/15/03.....................................      5,231,250
 5,000,000 MCN Investment Corp., 6.89%, 1/16/02................      5,050,000
 1,500,000 Transamerica Financial Corp.,                                      
           6.13%, 11/1/01......................................      1,505,625
 2,500,000 Transamerica Financial Corp.,                                      
           7.25%, 8/15/02......................................      2,565,625
 5,000,000 Wells Fargo Financial, Inc., 6.38%, 7/16/02.........      5,112,500
                                                                  ------------
                                                                    56,913,660
                                                                  ------------
           Finance -- Other Services (2.1%):                                  
 5,000,000 National Rural Utilities, 5.25%, 7/15/02............      5,043,750
                                                                  ------------
                                                                [Download Table]

 Shares or                                                                    
 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

            Industrial Goods & Services (1.9%):                               
$ 4,375,000 Enron Corp., 6.45%, 11/15/01.......................   $  4,402,344
                                                                  ------------
            Insurance -- Property & Casualty (2.3%):                          
  5,000,000 St. Paul Companies, Inc., 7.88%, 4/15/05...........      5,400,000
                                                                  ------------
            Oil & Gas (2.2%):                                                 
  5,000,000 Conoco, Inc., 5.90%, 4/15/04.......................      5,112,500
                                                                  ------------
            Pharmaceuticals (0.8%):                                           
  2,000,000 Pharmacia Corp., 5.38%, 12/1/01 (b)................      2,007,500
                                                                  ------------
            Telephone -- Integrated (1.3%):                                   
  3,000,000 WorldCom, Inc., 7.88%, 5/15/03.....................      3,120,000
                                                                  ------------
            Total Corporate Notes & Bonds......................    131,506,959
                                                                  ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (26.0%):                                   
            Fannie Mae (12.9%):                                               
  6,000,000 6.63%, 1/15/02.....................................      6,079,920
 15,000,000 6.50%, 8/15/04.....................................     15,792,900
  8,000,000 7.00%, 7/15/05.....................................      8,590,000
                                                                  ------------
                                                                    30,462,820
                                                                  ------------
            Freddie Mac (13.1%):                                              
  8,000,000 7.38%, 5/15/03.....................................      8,440,000
  5,000,000 5.75%, 7/15/03.....................................      5,142,700
  5,000,000 6.38%, 11/15/03....................................      5,218,750
  5,000,000 5.25%, 2/15/04.....................................      5,093,750
  7,000,000 6.25%, 7/15/04.....................................      7,315,000
                                                                  ------------
                                                                    31,210,200
                                                                  ------------
            Total U.S. Government Agency Obligations...........     61,673,020
                                                                  ------------
U.S. GOVERNMENT OBLIGATIONS (2.4%):                                           
            U.S. Treasury Bonds (2.4%):                                       
  5,150,000 7.25%, 5/15/04.....................................      5,571,270
                                                                  ------------
            Total U.S. Government Obligations..................      5,571,270
                                                                  ------------
INVESTMENT COMPANIES (7.3%):                                                  
    493,363 Dreyfus Cash Management Money Market Fund..........        493,363
 16,893,866 Federated Prime Value Obligations Money Market                    
            Fund...............................................     16,893,866
                                                                  ------------
            Total Investment Companies.........................     17,387,229
                                                                  ------------
Total Investments (Cost $229,962,161) (a) -- 98.7%..............   233,686,289
Other assets in excess of liabilities -- 1.3%...................     3,097,414
                                                                  ------------
Net Assets -- 100.0%............................................  $236,783,703
                                                                  ============

Continued 

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        Short Term Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            
-------                                                                         
(a)  Represents cost for financial reporting and Federal income tax purposes    
and differs from value by net unrealized appreciation of securities as
follows:                                                              

                                                                [Download Table]
                                                                             
Unrealized appreciation.......................................... $3,732,715 
Unrealized depreciation..........................................     (8,587)
                                                                  ---------- 
Net unrealized appreciation...................................... $3,724,128 
                                                                  ========== 

(b)  Rule 144A, Section 4(2) or other security which is restricted as to resale 
to institutional investors. The Fund's advisor has determined this    
security to be liquid based on procedures approved by the Board of    
Trustees.                                                             
*  Variable rate security. Rate presented represents rate in effect at July 31, 
2001. Maturity date reflects next rate change date.                       
BV -- VOOR BEORITVEN (Dutch Corp.)                                              
FSB -- Federal Savings Bank                                                     
MTN -- Medium Term Note                                                         
SA -- Sociedad Anonima (Spanish Corp.)                                          

See Notes to Financial Statements.

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        Tax-Free Income Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (99.9%):                                                      
           Arizona (0.9%):                                                    
$1,070,000 Greater Arizona Development Authority, 6.00%,                      
           8/1/13, Callable 8/1/08 @ 102, (Insured by MBIA)....   $  1,198,272
                                                                  ------------
           California (7.4%):                                                 
   265,000 Cal Poly Pomona Foundation Inc.,                                   
           5.50%, 2/1/20, Callable 2/1/11 @ 101, (Insured by                  
           MBIA)...............................................        277,370
 2,000,000 Orange County, Series A, 6.00%, 6/1/10 (Insured by                 
           MBIA)...............................................      2,292,420
   250,000 Sacramento County Sanitation Financing Authority,                  
           6.00%, 12/1/15, Callable 12/1/10 @ 101..............        279,833
 2,445,000 San Francisco City and County Airport, (AMT), 5.35%,               
           5/1/10, Callable 5/1/06                                            
           @ 102, (Insured by MBIA)............................      2,607,201
 1,400,000 State, GO, 7.00%, 6/1/05............................      1,580,992
 2,000,000 State, GO, 6.25%, 9/1/12, (Insured by                              
           FGIC -- TCRS).......................................      2,338,260
                                                                  ------------
                                                                     9,376,076
                                                                  ------------
           Colorado (10.2%):                                                  
 2,265,000 Boulder County Sales and Use Tax, Series A, 6.00%,                 
           12/15/18, Callable 12/15/09 @ 101, (Insured by                     
           FGIC)...............................................      2,495,668
 1,385,000 Denver City & County Airport Revenue, Series B,                    
           5.50%, 11/15/15, Callable 11/15/11 @ 100, (Insured                 
           by FGIC)............................................      1,482,033
   650,000 Denver City & County Airport Revenue, Series C,                    
           (AMT), 6.75%, 11/15/22, Prerefunded 11/15/02 @ 102..        693,706
 1,580,000 Denver City and County Airport Revenue, 6.75%,                     
           11/15/22, (Insured by MBIA).........................      1,665,162
 2,000,000 Department of Transportation Revenue, 5.50%,                       
           6/15/06, (Insured by MBIA)..........................      2,159,180
 1,000,000 E-470 Public Highway Authority Revenue, Series C,                  
           6.00%, 9/1/07, (Insured by MBIA)....................      1,114,810
 1,000,000 El Paso County School District No. 38, 6.00%,                      
           12/1/24, Callable 12/1/10 @ 100.....................      1,082,580
   130,000 Golden Colorado Sales & Usage Tax,                                 
           4.80%, 12/1/14, Callable 12/1/11 @ 100, (Insured by                
           AMBAC)..............................................        132,055
   120,000 Golden Colorado Sales & Use Tax,                                   
           4.90%, 12/1/15, Callable 12/1/11 @ 100, (Insured by                
           AMBAC)..............................................        121,396
   195,000 Housing Finance Authority,                                         
           4.25%, 10/1/05......................................        195,105
 1,545,000 Summit County School District No. RE1, GO, 5.75%,                  
           12/1/13, Callable 12/1/11 @ 100, (Insured by FSA)...      1,720,018
                                                                  ------------
                                                                    12,861,713
                                                                  ------------
           Delaware (3.0%):                                                   
 3,500,000 Delaware Transportation Authority, 6.00%, 7/1/16,                  
           Callable 7/1/10 @ 100...............................      3,844,995
                                                                  ------------
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Florida (1.7%):                                                    
$2,000,000 State, Board of Education, Series D,                               
           5.75%, 6/1/19, Callable 6/1/10 @ 101................   $  2,141,600
                                                                  ------------
           Georgia (4.7%):                                                    
 2,900,000 Atlanta Georgia Airport Revenue, (AMT), 5.63%,                     
           1/1/30, (Insured by FGIC)...........................      2,989,639
 2,610,000 State, Series D, GO, 5.80%, 11/1/16, Callable                      
           11/1/09 @ 102.......................................      2,928,445
                                                                  ------------
                                                                     5,918,084
                                                                  ------------
           Hawaii (0.9%):                                                     
   800,000 Honolulu City & County, Series A,                                  
           5.75%, 4/1/10.......................................        884,528
   200,000 Honolulu City & County, Series A, ETM, 5.75%,                      
           4/1/10..............................................        223,224
                                                                  ------------
                                                                     1,107,752
                                                                  ------------
           Illinois (8.4%):                                                   
 2,000,000 Chicago Metropolitan Water Reclamation District,                   
           Capital Improvement, GO,                                           
           5.50%, 12/1/10......................................      2,180,200
   500,000 Chicago Metropolitan Water Reclamation District-                   
           Greater Chicago, Capital Improvements, GO, 7.25%,                  
           12/1/12.............................................        623,350
 1,000,000 Chicago School Finance Authority, Series A, GO,                    
           4.90%, 6/1/05, Callable 6/1/04 @ 102, (Insured by                  
           MBIA)...............................................      1,048,970
 1,520,000 Chicago Single Family Mortgage Revenue, Series A,                  
           (AMT), 4.70%, 10/1/17, Callable 4/1/09 @ 102........      1,520,410
 1,700,000 Development Finance Authority,                                     
           6.38%, 1/1/17, Callable 1/1/11 @ 100, (Insured by                  
           FSA)................................................      1,917,872
 1,700,000 Development Finance Authority,                                     
           6.38%, 1/1/18, Callable 1/1/11 @ 100, (Insured by                  
           FSA)................................................      1,910,970
   300,000 State, GO, 5.88%, 10/1/17, Callable 10/1/09 @ 100,                 
           (Insured by FGIC)...................................        322,848
 1,000,000 State, Sales Tax, Series S, 5.00%, 6/15/08..........      1,057,000
                                                                  ------------
                                                                    10,581,620
                                                                  ------------
           Indiana (3.7%):                                                    
 4,000,000 Franklin Township School Building,                                 
           6.50%, 7/15/18, Prerefunded 7/15/10 @ 102...........      4,738,799
                                                                  ------------
           Iowa (1.9%):                                                       
 2,055,000 Finance Authority, Private College Revenue, Drake                  
           University Project, 6.50%, 12/1/11, (Insured by                    
           MBIA)...............................................      2,429,894
                                                                  ------------
           Louisiana (0.8%):                                                  
   975,000 Housing Finance Agency, Single Family Mortgage                     
           Revenue, (AMT), 6.40%, 12/1/30, Callable 6/1/09 @                  
           101.................................................      1,031,872
                                                                  ------------

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (9.1%):                                                   
$  650,000 Frankenmuth School District, 5.75%, 5/1/20, Callable               
           5/1/10 @ 100, (Insured by FGIC).....................   $    688,994
 1,000,000 Genesee School District, 6.00%, 5/1/29, (Insured by                
           FSA)................................................      1,083,540
 2,265,000 Grand Ledge Public Schools District, GO, 5.35%,                    
           5/1/10 (Insured by MBIA)............................      2,456,189
   930,000 Kent County Airport Facility, Kent County                          
           International Airport, (AMT), 5.50%, 1/1/07,                       
           Prerefunded 1/1/05 @ 102............................      1,003,935
   620,000 Marshall Public School District,                                   
           4.50%, 5/1/12, Callable 5/1/11 @ 100, Q-SBLF........        622,325
   500,000 Marshall Public School District,                                   
           4.60%, 5/1/13, Callable 5/1/11 @ 100, Q-SBLF........        501,495
 3,000,000 Michigan Higher Education Student Loan, (AMT),                     
           4.75%, 3/1/09, (Insured by AMBAC)...................      3,026,580
 1,000,000 Michigan State, South Central Power Agency, Power                  
           Supply System Revenue, 5.80%, 11/1/05, (Insured by                 
           MBIA)...............................................      1,087,850
 1,000,000 State, Strategic Fund, Hope Network Project, Series                
           B, 5.13%, 9/1/13, Callable 9/1/08                                  
           @ 102, (LOC: First of America)......................      1,043,620
                                                                  ------------
                                                                    11,514,528
                                                                  ------------
           Minnesota (2.7%):                                                  
 1,000,000 Becker Independent School District No. 726, 6.00%,                 
           2/1/21, Callable 2/1/10 @100, (Insured by FSA)......      1,078,040
 2,150,000 Rochester Independent School District                              
           No. 535, 5.88%, 2/1/20, Callable 2/1/10                            
           @ 100...............................................      2,313,207
                                                                  ------------
                                                                     3,391,247
                                                                  ------------
           Mississippi (0.2%):                                                
   210,000 Home Corp. Single Family Mortgage, Class 4, Series                 
           A, 4.80%, 6/1/19, Callable 6/1/09 @ 102.............        209,727
                                                                  ------------
           Missouri (4.9%):                                                   
 2,400,000 Greene County School District,                                     
           6.20%, 3/1/18, Callable 3/1/10 @ 100................      2,760,096
 2,050,000 Lawson School District No. 14,                                     
           6.20%, 3/1/20, Callable 3/1/10 @ 100................      2,345,467
   725,000 Ozarks College Building Corp. Missouri Leasehold                   
           Revenue, 4.60%, 3/1/13, Callable 3/1/11 @ 100,                     
           (Insured by FSA)....................................        724,623
   335,000 State, Health & Education Facilities,                              
           6.50%, 2/15/21, Prerefunded 2/15/06 @ 102...........        381,451
                                                                  ------------
                                                                     6,211,637
                                                                  ------------
           Nebraska (2.2%):                                                   
 1,365,000 Nebraska, Series A UTGO, 6.50%, 12/1/13.............      1,633,700
 1,075,000 Omaha Public Power District, 5.10%, 2/1/08..........      1,141,962
                                                                  ------------
                                                                     2,775,662
                                                                  ------------
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Nevada (3.4%):                                                     
$1,805,000 Clark County School District, GO,                                  
           5.75%, 6/15/10, Prerefunded 6/15/06 @ 101, (Insured                
           by FGIC)............................................   $  1,991,908
 2,000,000 State, Municipal Bond Bank, Series A, GO, 8.00%,                   
           11/1/05.............................................      2,347,740
                                                                  ------------
                                                                     4,339,648
                                                                  ------------
           New Jersey (2.6%):                                                 
 1,500,000 Economic Development Authority, Market Transition                  
           Facility Revenue, Senior Lien, 7.00%, 7/1/04,                      
           (Insured by MBIA)...................................      1,654,980
 1,500,000 State, Transportation Trust Fund Authority,                        
           Transportation System, Series A,                                   
           6.00%, 12/15/06, (Insured by MBIA)..................      1,673,865
                                                                  ------------
                                                                     3,328,845
                                                                  ------------
           New York (2.8%):                                                   
 2,200,000 New York City Transitional Financial Authority,                    
           5.75%, 11/15/16, Callable 5/15/10 @ 101.............      2,396,284
 1,000,000 State, Thruway Authority, Series 1997 B, 6.00%,                    
           4/1/07..............................................      1,109,270
                                                                  ------------
                                                                     3,505,554
                                                                  ------------
           North Carolina (1.3%):                                             
 1,500,000 State, GO, 5.20%, 3/1/12, Callable 3/1/07                          
           @ 102...............................................      1,584,975
                                                                  ------------
           Ohio (6.2%):                                                       
 1,720,000 Cleveland, GO, 5.10%, 9/1/05, (Insured by AMBAC)....      1,826,244
 4,000,000 State, Higher Education, Capital Facilities Series                 
           II-A, 5.50%, 12/1/07................................      4,369,360
 1,445,000 Summit County, 6.00%, 12/1/21, Callable 12/1/10 @                  
           101, (Insured by FGIC)..............................      1,584,948
                                                                  ------------
                                                                     7,780,552
                                                                  ------------
           Oklahoma (0.9%):                                                   
 1,000,000 Tulsa International Airport, (AMT),                                
           5.50%, 6/1/10, (Insured by FGIC)....................      1,094,530
                                                                  ------------
           Pennsylvania (6.7%):                                               
 5,000,000 Allegheny County Sanitary Authority Sewer Revenue,                 
           5.50%, 12/1/30, Callable 12/1/10 @ 101, (Insured by                
           MBIA)...............................................      5,168,200
 2,000,000 State, 6.00%, 1/15/19, Callable 1/15/10                            
           @ 101, UTGO.........................................      2,181,780
 1,000,000 State, Turnpike, Series T, 5.50%, 12/1/11, (Insured                
           by FGIC)............................................      1,100,540
                                                                  ------------
                                                                     8,450,520
                                                                  ------------
           Tennessee (1.0%):                                                  
 1,225,000 Housing Development Agency, Mortgage Finance, Series               
           C, (AMT), 5.95%, 7/1/09, Callable 7/1/05 @ 102,                    
           (Insured by MBIA)...................................      1,308,129
                                                                  ------------

Continued 

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(continued) 
 July 31, 2001

                                                                [Download Table]

Shares or                                                                     
Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Texas (8.8%):                                                      
$1,000,000 Brownsville Utility System, 6.25%, 9/1/11, (Insured                
           by AMBAC)...........................................   $  1,149,760
 3,000,000 Dallas Fort Worth International Airport, 6.00%,                    
           11/1/28, Callable 11/1/09 @ 100, (Insured by FGIC)..      3,167,580
 1,080,000 Denton Independent School District,                                
           5.50%, 8/15/13, PSF-GTD.............................      1,176,044
 2,135,000 Plano Independent School District, GO, 5.13%,                      
           2/15/14, Callable 8/15/10 @ 100.....................      2,196,872
 2,000,000 Texas City Industrial Development Corp., Marine                    
           Terminal Revenue, Arco Pipeline Co. Project, 7.38%,                
           10/1/20.............................................      2,544,180
   815,000 Travis County, GO, 5.75%, 3/1/17, Callable 3/1/10 @                
           100.................................................        867,274
                                                                  ------------
                                                                    11,101,710
                                                                  ------------
           Washington (2.9%):                                                 
 1,000,000 Douglas County Public Utility District No. 001,                    
           Electric Distribution System, 5.90%, 1/1/11,                       
           Callable 1/1/05 @ 102, (Insured by MBIA)............      1,070,820
 2,500,000 Port Seattle Limited Tax, GO, (AMT),                               
           5.35%, 5/1/04.......................................      2,623,225
                                                                  ------------
                                                                     3,694,045
                                                                  ------------
           Wyoming (0.6%):                                                    
   775,000 Green River-Sweetwater County, Board Revenue, Series               
           B, 4.50%, 3/1/14, Callable 3/1/05 @ 100, (Insured by               
           FSA)................................................        775,000
                                                                  ------------
           Total Municipal Bonds...............................    126,296,986
                                                                  ------------
INVESTMENT COMPANIES (2.6%):                                                  
   300,799 Dreyfus Tax Exempt Money Market Fund................        300,799
 3,040,880 Federated Tax Exempt Money Market Fund..............      3,040,880
                                                                  ------------
           Total Investment Companies..........................      3,341,679
                                                                  ------------
Total Investments (Cost $122,135,470) (a) -- 102.5%.............   129,638,665
Liabilities in excess of other assets -- (2.5)%.................   (3,142,755)
                                                                  ------------
Net Assets -- 100.0%............................................  $126,495,910
                                                                  ============

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

                                                                [Download Table]
                                                                             
Unrealized appreciation.......................................... $7,511,089 
Unrealized depreciation..........................................     (7,894)
                                                                  ---------- 
Net unrealized appreciation...................................... $7,503,195 
                                                                  ========== 

AMBAC -- AMBAC Indemnity Corp.                                                  
AMT -- Alternative Minimum Tax Paper                                            
ETM -- Escrowed to Maturity                                                     
FGIC -- Financial Guaranty Insurance Corp.                                      
FNMA -- Federal National Mortgage Association                                   
FSA -- Financial Security Assurance                                             
GNMA -- Government National Mortgage Association                                
GO -- General Obligation                                                        
LOC -- Letter of Credit                                                         
MBIA -- Municipal Bond Insurance Association                                    
PSF-GTD -- Permanent School Fund Guarantee                                      
Q-SBLF -- Qualified School Bond Loan Fund                                       
TCRS -- Transferable Custodial Receipts                                         
UTGO -- Unlimited Tax General Obligation                                        

See Notes to Financial Statements.

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (97.1%):                                                      
           Alaska (0.4%):                                                     
$1,000,000 Anchorage Electric Utility, Revenue Bond, Senior                   
           Lien, 5.50%, 12/1/03, Callable 6/1/03 @ 102 (Insured               
           by MBIA)............................................   $  1,053,450
                                                                  ------------
           Arizona (5.9%):                                                    
 1,290,000 Glendale Water and Sewer Revenue,                                  
           5.00%, 7/1/06, (Insured by FGIC)....................      1,368,987
 1,540,000 Glendale Water and Sewer Revenue,                                  
           5.00%, 7/1/07, (Insured by FGIC)....................      1,636,712
 1,370,000 Pima County Community College District Revenue,                    
           5.00%, 7/1/05, (Insured by AMBAC)...................      1,447,035
   670,000 Pima County Community College District Revenue,                    
           5.00%, 7/1/07, (Insured by AMBAC)...................        712,076
   100,000 Pima County Sewer Revenue, 4.00%, 7/1/04, (Insured                 
           by FGIC)............................................        102,037
 1,050,000 Pima County University School District, 5.75%,                     
           7/1/12, Callable 7/1/09 @ 100, (Insured by FGIC)....      1,149,834
 5,000,000 Salt River Project Agricultural Improvement & Power                
           District Electric System, Series A, 5.63%, 1/1/06...      5,392,550
 2,000,000 Tucson Street & Hwy, 6.75%, 7/1/13,                                
           (FGIC Insured)......................................      2,429,500
                                                                  ------------
                                                                    14,238,731
                                                                  ------------
           California (3.1%):                                                 
 3,000,000 Orange County, Series A, 6.00%, 6/1/10 (Insured by                 
           MBIA)...............................................      3,438,630
 3,400,000 State, GO, 6.60%, 2/1/10............................      4,048,890
                                                                  ------------
                                                                     7,487,520
                                                                  ------------
           Colorado (6.7%):                                                   
   680,000 Arapahoe County Capital Improvement Highway Revenue,               
           7.00%, 8/31/26, Prerefunded 8/31/05 @ 103...........        789,949
 2,000,000 Denver City and County Airport Facilities, (AMT),                  
           5.00%, 1/1/04 (Insured by MBIA).....................      2,077,660
 1,000,000 Denver City and County Airport Revenue, 5.50%,                     
           11/15/07, (Insured by FGIC).........................      1,081,880
 2,000,000 Denver City and County Airport Revenue, 7.75%,                     
           11/15/21, Callable 11/15/01 @ 102...................      2,059,240
 3,000,000 Department of Transportation Revenue, 5.50%,                       
           6/15/06, (Insured by MBIA)..........................      3,238,771
 1,150,000 El Paso County School District No. 38, GO, 6.38%,                  
           12/1/16, Callable 12/1/10 @ 100.....................      1,302,812
 1,005,000 El Paso County School District No. 38, GO, 6.38%,                  
           12/1/18, Callable 12/1/10 @ 100.....................      1,127,188
   110,000 Garfield County School District No. 16, GO, 4.60%,                 
           12/1/09, (Insured by MBIA)..........................        113,940
   540,000 Housing & Finance Authority, Single Family, Series                 
           B-3, 4.13%, 8/1/10..................................        546,890
   325,000 Housing Finance Authority,                                         
           4.50%, 11/1/05......................................        324,155
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Colorado (continued)                                               
$  490,000 Housing Finance Authority,                                         
           5.40%, 10/1/06......................................   $    496,272
   900,000 Housing Financial Authority,                                       
           5.10%, 10/1/06......................................        907,488
   615,000 Housing Financial Authority, Single Family Series 3,               
           4.70%, 10/1/22, Callable 10/1/09                                   
           @ 102...............................................        618,518
 1,465,000 Summit County School District No. RE1, 5.75%,                      
           12/1/12, Callable 12/1/11 @ 100, (Insured By FSA)...      1,642,617
                                                                  ------------
                                                                    16,327,380
                                                                  ------------
           District of Columbia (1.8%):                                       
 4,175,000 Metropolitan Airports, (AMT),                                      
           5.50%, 10/1/05......................................      4,465,246
                                                                  ------------
           Florida (1.8%):                                                    
 1,000,000 Hillsborough County Development Authority Revenue,                 
           6.38%, 12/1/12, Prerefunded 12/1/03 @ 100, (Insured                
           by MBIA)............................................      1,077,630
 2,000,000 Lakeland Electric & Water Revenue,                                 
           5.90%, 10/1/07......................................      2,236,820
 1,000,000 Palm Beach County Airport System Revenue, 4.00%,                   
           10/1/06, (Insured by MBIA)..........................      1,017,400
                                                                  ------------
                                                                     4,331,850
                                                                  ------------
           Georgia (1.8%):                                                    
 2,670,000 Atlanta Airport Facilities Revenue, (AMT), Series B,               
           5.50%, 1/1/03 (Insured by AMBAC)....................      2,755,867
 1,500,000 State, Series B, GO, 5.95%, 3/1/08..................      1,673,130
                                                                  ------------
                                                                     4,428,997
                                                                  ------------
           Hawaii (0.8%):                                                     
   855,000 Honolulu City & County, 5.60%, 1/1/05...............        912,516
   170,000 Honolulu City & County, ETM,                                       
           5.60%, 1/1/05.......................................        181,718
   765,000 State Highway Revenue, 5.50%, 7/1/10, (Insured by                  
           FSA)................................................        833,743
                                                                  ------------
                                                                     1,927,977
                                                                  ------------
           Illinois (6.2%):                                                   
 3,000,000 Chicago Metropolitan Water Reclamation District,                   
           Capital Improvement, GO,                                           
           5.50%, 12/1/10......................................      3,270,300
 1,000,000 Chicago Metropolitan Water Reclamation District,                   
           Working Cash Fund,                                                 
           5.90%, 12/1/04......................................      1,079,620
 1,300,000 Development Finance Authority Revenue, 6.38%,                      
           1/1/15, (Insured by FSA)............................      1,477,229

Continued 

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              Intermediate Tax-Free Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Illinois (continued)                                               
$1,470,000 Development Finance Authority Revenue, 6.38%,                      
           1/1/16, Callable 1/1/11 @ 100, (Insured by FSA).....   $  1,663,187
 4,000,000 Development Finance Authority, Pollution Control                   
           Revenue, Commonwealth Edison, 5.30%, 1/15/04                       
           (Insured by MBIA)...................................      4,182,880
 3,135,000 Northwest Suburban Municipal Joint Action, Water                   
           Agency, Water Supply System,                                       
           Series A, 5.25%, 5/1/04 (Insured by MBIA)...........      3,290,621
                                                                  ------------
                                                                    14,963,837
                                                                  ------------
           Indiana (2.3%):                                                    
 2,000,000 Municipal Power Supply Agency, System Revenue,                     
           Series B, 5.88%, 1/1/10 (Insured by MBIA)...........      2,238,760
 3,000,000 Municipal Power Supply Agency, System Revenue,                     
           Series B, 6.00%, 1/1/13, (Insured by MBIA)..........      3,385,710
                                                                  ------------
                                                                     5,624,470
                                                                  ------------
           Louisiana (1.7%):                                                  
 4,000,000 State, Series A, GO, 5.30%, 8/1/04 (Insured by                     
           MBIA)...............................................      4,229,840
                                                                  ------------
           Maryland (0.0%):                                                   
    50,000 State, Refunding Bond, GO, 4.20%, 8/1/01............         50,000
                                                                  ------------
           Massachusetts (1.1%):                                              
 2,500,000 State Water Pollution Abatement,                                   
           5.25%, 2/1/12, Callable 8/1/11 @ 100................      2,673,475
                                                                  ------------
           Michigan (23.6%):                                                  
 2,215,000 Battle Creek Downtown Development Authority, 6.00%,                
           5/1/07 (Insured by MBIA)............................      2,455,416
 4,000,000 Battle Creek Downtown Development Authority, 7.30%,                
           5/1/10, Prerefunded 5/1/04 @ 102....................      4,493,880
   300,000 Cadillac Public Schools, GO, 7.25%, 5/1/05 (Insured                
           by FGIC)............................................        338,688
 1,195,000 Detroit, (AMT), 5.50%, 4/1/08, UTGO, (Insured by                   
           FSA)................................................      1,283,609
 1,525,000 Detroit GO, 4.10%, 4/1/03...........................      1,545,740
 6,000,000 Detroit Water Supply System, Permanent Linked Bonds,               
           5.25%, 7/1/13, Callable 7/1/04 @ 102 (Insured by                   
           FGIC)...............................................      6,236,820
 2,785,000 Forest Hills Public Schools, GO,                                   
           5.25%, 5/1/09.......................................      2,982,457
   565,000 Grand Rapids & Kent County Joint Building Authority,               
           GO, 5.50%, 10/1/08..................................        616,585
 1,000,000 Grand Rapids Water Supply, 5.00%, 1/1/08, (Insured                 
           by FGIC)............................................      1,052,460
 1,135,000 Grand Valley State University Revenue, Series A,                   
           4.00%, 6/1/07, (Insured by FGIC)....................      1,144,704
                                                                [Download Table]

Principal                                                                      
  Amount                    Security Description                      Value    
---------                   --------------------                      -----    
                                                                               

MUNICIPAL BONDS (continued)                                                    
           Michigan (continued)                                                
$1,200,000 Grand Valley State University Revenue, Series A,                    
           4.10%, 6/1/08, (Insured by FGIC).....................   $  1,207,692
 1,700,000 Greater Detroit Resource Recovery Authority, Series                 
           A, 5.50%, 12/13/04 (Insured by AMBAC)................      1,814,648
   250,000 Higher Education Facilities Authority,                              
           4.50%, 10/1/07.......................................        251,683
   590,000 Higher Education Facilities Authority,                              
           4.80%, 10/1/10, Callable 10/1/09 @ 100...............        586,631
   200,000 Higher Education Facilities Authority, Hope College                 
           Project, 4.70%, 10/1/09..............................        200,410
   590,000 Higher Education Facilities Authority, Kalamazoo                    
           College Project,                                                    
           5.25%, 12/1/05.......................................        626,220
   725,000 Higher Education Facilities Authority, Kalamazoo                    
           College Project,                                                    
           5.25%, 12/1/06.......................................        772,886
   765,000 Higher Education Facilities Authority, Kalamazoo                    
           College Project,                                                    
           5.25%, 12/1/07.......................................        815,674
 4,225,000 Higher Education Student Loan Authority Revenue,                    
           5.20%, 9/1/08, (Insured by AMBAC)....................      4,438,953
 3,885,000 Higher Education Student Loan Authority, (AMT),                     
           5.05%, 9/1/08 (Insured by AMBAC).....................      4,029,716
 2,000,000 Kalamazoo Hospital Finance Authority, Refunding &                   
           Improvement, Bronson Methodist Hospital, 5.35%,                     
           5/15/06 (Insured by MBIA)............................      2,130,000
 1,000,000 Michigan Higher Education Student Loan Authority                    
           Revenue, Series XII-W, (AMT), 4.60%, 9/1/08, (Insured               
           by AMBAC)............................................      1,009,550
 1,580,000 Michigan State Strategic Fund, Limited Obligation                   
           Revenue, Environmental Research Project, 4.75%,                     
           10/1/15, Callable 10/1/03 @ 100, (LOC: Comerica).....      1,580,000
   500,000 Michigan State, Strategic Fund, Limited Obligation                  
           Revenue, Pelzer, Inc., Troy Project, 3.00%*, 8/2/01,                
           (LOC: Bank One)......................................        500,000
   340,000 Muskegon Heights Water System,                                      
           5.25%, 11/1/09, (Insured by MBIA)....................        365,194
   300,000 Oakland County Economic Development Corp., Limited                  
           Obligation Revenue, Moody Family Limited Project,                   
           (AMT),                                                              
           3.00%*, 8/1/01, (LOC: Bank One)......................        300,000
 1,115,000 South Macomb Disposal Authority Revenue, 5.00%,                     
           9/1/08, (Insured by AMBAC)...........................      1,178,890
 1,500,000 State, 5.25%, 12/1/05................................      1,607,610
 1,700,000 State, Building Authority Revenue, State Police                     
           Communications-III,                                                 
           5.00%, 10/1/05.......................................      1,796,424
 1,450,000 State, Hospital Finance Authority, St. John Hospital                
           & Medical Center, 5.00%, 5/15/06 (Insured by AMBAC)..      1,540,364

Continued 

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              Intermediate Tax-Free Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$  765,000 State, Housing Development Authority, 3.45%,                       
           12/1/02, (Insured by MBIA)..........................   $    774,142
 1,000,000 State, Strategic Fund, Hope Network Project, Series                
           B, 4.80%, 9/1/08, (LOC: First of America)...........      1,032,020
 2,300,000 State, Strategic Fund, Limited Obligation Revenue,                 
           Ford Motor Co. Project, Series A, 7.10%, 2/1/06.....      2,591,962
 3,500,000 State, Underground Storage Tank Financial Assurance                
           Authority, Series I, 6.00%, 5/1/05 (Insured by                     
           AMBAC)..............................................      3,800,510
                                                                  ------------
                                                                    57,101,538
                                                                  ------------
           Minnesota (3.2%):                                                  
 1,545,000 Hennepin County Minnesota, Series B, UTGO, 4.25%,                  
           12/1/10.............................................      1,552,462
 2,855,000 Minneapolis & St. Paul Airport Revenue, Series B,                  
           (AMT), 5.00%, 1/1/05, (Insured by FGIC).............      2,975,624
 3,020,000 Minneapolis, GO, Series B, 4.75%, 12/1/09...........      3,166,410
                                                                  ------------
                                                                     7,694,496
                                                                  ------------
           Missouri (1.5%):                                                   
 2,000,000 Clay County Public School District, GO, 6.25%,                     
           3/1/17, Callable 3/1/10 @ 100, (Insured by State Aid               
           Direct Deposit).....................................      2,220,160
 1,400,000 Springfield Public Utility Revenue,                                
           4.50%, 12/1/11, Callable on 12/1/09                                
           @ 100, (Insured by AMBAC)...........................      1,400,000
                                                                  ------------
                                                                     3,620,160
                                                                  ------------
           Nevada (1.7%):                                                     
 3,700,000 Clark County School District, Series B, GO, 5.50%,                 
           6/15/08, (Insured by FGIC)..........................      4,016,313
                                                                  ------------
           New Jersey (5.0%):                                                 
 6,000,000 Economic Development Authority, Market Transition                  
           Facility Revenue, Senior Lien, 7.00%, 7/1/04,                      
           (Insured by MBIA)...................................      6,619,919
 2,500,000 Ocean County Utilities Authority, Wastewater                       
           Revenue, Refunding, GO,                                            
           6.00%, 1/1/07.......................................      2,768,650
 2,500,000 State, Turnpike Authority Revenue,                                 
           6.00%, 1/1/13, (Insured by MBIA)....................      2,855,025
                                                                  ------------
                                                                    12,243,594
                                                                  ------------
           New York (0.5%):                                                   
 1,030,000 Metropolitan Transportation Authority, Series M,                   
           5.50%, 7/1/08 (Insured by FGIC).....................      1,132,258
                                                                  ------------
           North Carolina (0.8%):                                             
 2,000,000 Municipal Power Agency No. 1, Catawba Electric                     
           Revenue, 5.90%, 1/1/03..............................      2,055,440
                                                                  ------------
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Ohio (6.5%):                                                       
$  500,000 Cleveland Airport System Revenue, Series A, (AMT),                 
           5.50%, 1/1/04, (Insured by FSA).....................   $    523,740
 3,465,000 Cuyahoga County Capital Improvement, GO, 5.00%,                    
           12/1/07.............................................      3,692,408
 2,710,000 Cuyahoga County Capital Improvement, GO, 5.00%,                    
           12/1/08.............................................      2,885,987
 2,745,000 Housing Financial Agency Management Revenue, (AMT),                
           5.35%, 9/1/05.......................................      2,862,074
 2,000,000 State, Higher Education, Capital Facilities Series                 
           II-A, 5.50%, 12/1/07................................      2,184,680
 1,060,000 Summit County, GO, 5.75%, 12/1/07, (Insured by                     
           FGIC)...............................................      1,172,646
   400,000 Summit County, GO, 6.00%, 12/1/09, (Insured by                     
           FGIC)...............................................        451,732
 2,000,000 University of Cincinnati General Receipts, 5.50%,                  
           6/1/05, (Insured by FGIC)...........................      2,142,040
                                                                  ------------
                                                                    15,915,307
                                                                  ------------
           Oklahoma (0.4%):                                                   
 1,000,000 State, Capital Improvement Authority, Highway                      
           Capital Improvement Revenue, 5.00%, 12/1/07,                       
           (Insured by MBIA)...................................      1,069,700
                                                                  ------------
           Oregon (3.6%):                                                     
 1,030,000 Jackson County School District No 009, Eagle Point,                
           GO, 5.00%, 6/15/08..................................      1,093,788
 1,060,000 Jackson County School District No 009, Eagle Point,                
           GO, 5.00%, 6/15/09..................................      1,124,416
 1,915,000 Multnomah County School District No 007, Reynolds,                 
           GO, 5.00%, 6/15/10..................................      2,029,326
 1,000,000 Multnomah County School District No 007, Reynolds,                 
           GO, 5.00%, 6/15/11..................................      1,056,150
 1,045,000 State, Department Transportation Highway Usertax                   
           Revenue, 5.00%, 11/15/05............................      1,107,198
 2,000,000 Washington County Sewer Agency, Series A, 5.75%,                   
           10/1/12, (Insured by FGIC)..........................      2,244,760
                                                                  ------------
                                                                     8,655,638
                                                                  ------------
           Pennsylvania (1.9%):                                               
 4,160,000 Chartiers Valley Joint School, ETM,                                
           6.15%, 3/1/07.......................................      4,552,122
                                                                  ------------
           Rhode Island (0.4%):                                               
 1,000,000 State Depositors Economic Protection Corp., Series                 
           B, Special Obligation, 5.20%, 8/1/03 (Insured by                   
           MBIA)...............................................      1,043,270
                                                                  ------------
           South Carolina (0.4%):                                             
   890,000 Anderson County School District No. 2, GO, 6.00%,                  
           3/1/13, Callable 3/1/10 @ 100.......................        996,489
                                                                  ------------
           Tennessee (0.3%):                                                  
   600,000 Shelby County Health & Education, St. Jude's                       
           Children's Research, 4.65%, 7/1/04..................        614,574
                                                                  ------------

Continued 

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              Intermediate Tax-Free Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Texas (7.8%):                                                      
$  400,000 Brownsville Independent School District, GO, 7.25%,                
           8/15/04.............................................   $    444,024
 2,245,000 Dallas Independent School District, GO, 5.40%,                     
           8/15/03.............................................      2,344,162
 1,065,000 Deer Park Texas Independent School District, UTGO,                 
           4.50%, 2/15/08, (Insured by PSF-GTD)................      1,091,540
 2,500,000 Houston Water & Sewer System Revenue, Junior Lien,                 
           Series A, 5.50%, 12/1/14, Callable 12/1/11 @ 100,                  
           (Insured by FSA) ...................................      2,667,300
 1,500,000 Houston Water & Sewer System Revenue, Junior Lien,                 
           Series C, 5.75%, 12/1/03 (Insured by MBIA)..........      1,588,875
 1,050,000 Round Rock Independent School District, GO, 5.25%,                 
           2/15/05.............................................      1,106,984
    95,000 San Antonio Water Revenue, 6.30%, 5/15/04, Callable                
           5/15/02 @ 102, (Insured by FGIC)....................        102,672
 5,595,000 State, Public Finance Authority, Series A, GO,                     
           6.50%, 10/1/04......................................      6,117,405
 2,340,000 Tarrant County College District, GO,                               
           4.50%, 2/15/08......................................      2,396,956
 1,015,000 University of Texas, University Revenue, Series A,                 
           6.60%, 8/15/02, Callable 8/15/01                                   
           @ 102...............................................      1,036,579
                                                                  ------------
                                                                    18,896,497
                                                                  ------------
           Washington (4.9%):                                                 
 1,010,000 Port Tacoma, (AMT), 4.90%, 12/1/07, (Insured by                    
           AMBAC)..............................................      1,053,885
 1,000,000 State, Motor Vehicle Fuel Tax, R-92D, GO, 6.25%,                   
           9/1/07..............................................      1,127,670
 6,500,000 State, Series A, GO, 5.50%, 9/1/05, Callable 9/1/04                
           @ 100...............................................      6,876,024
 1,125,000 Tacoma Electric Systems Revenue,                                   
           6.00%, 1/1/06, (Insured by AMBAC)...................      1,227,499
 1,570,000 Tacoma Electric Systems Revenue, ETM,                              
           Pre-Refunded, 6.00%, 1/1/06, (Insured by AMBAC).....      1,722,369
                                                                  ------------
                                                                    12,007,447
                                                                  ------------
           Wisconsin (1.0%):                                                  
 2,500,000 Milwaukee County Revenue, Series B,                                
           4.35%, 6/1/29, Mandatory Put 12/1/04                               
           @ 100, (LOC: First National Bank)...................      2,500,000
                                                                  ------------
           Total Municipal Bonds...............................    235,917,616
                                                                  ------------
                                                                [Download Table]


  Shares                    Security Description                      Value    
  ------                    --------------------                      -----    
                                                                               

INVESTMENT COMPANIES (5.6%):                                                   
   240,940 Dreyfus Tax Exempt Money Market Fund.................   $    240,940
13,430,546 Federated Tax Exempt Money Market Fund...............     13,430,546
                                                                   ------------
           Total Investment Companies...........................     13,671,486
                                                                   ------------
Total Investments (Cost $236,848,570) (a) -- 102.7%..............   249,589,102
Liabilities in excess of other assets -- (2.7)%..................   (6,455,915)
                                                                   ------------
Net Assets -- 100.0%.............................................  $243,133,187
                                                                   ============

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

                                                                [Download Table]
                                                                             
Unrealized appreciation......................................... $12,744,746 
Unrealized depreciation.........................................      (4,214)
                                                                 ----------- 
Net unrealized appreciation..................................... $12,740,532 
                                                                 =========== 

*  Variable rate security. Rate presented represents rate in effect at July 31, 
2001. Maturity date reflects next rate change date.                       
AMBAC -- AMBAC Indemnity Corp.                                                  
AMT -- Alternative Minimum Tax Paper                                            
ETM -- Escrowed to Maturity                                                     
FGIC -- Financial Guaranty Insurance Corp.                                      
FSA -- Financial Security Assurance                                             
GO -- General Obligation                                                        
GNMA -- Government National Mortgage Association                                
LOC -- Letter of Credit                                                         
MBIA -- Municipal Bond Insurance Association                                    
PSF-GTD -- Permanent School Fund Guarantee                                      
SCSDE -- South Carolina School District Enhancement                             
Q-SBLF -- Qualified School Bond Loan Fund                                       
UTGO -- Unlimited Tax General Obligation                                        

See Notes to Financial Statements.

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                Michigan Municipal Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                    Security Description                     Value    
---------                   --------------------                     -----    
                                                                              

MUNICIPAL BONDS (98.3%):                                                      
           Michigan (98.3%):                                                  
$  775,000 Allegan Sanitary Sewer System, (AMT), 5.45%,                       
           11/1/02..............................................  $    792,817
   320,000 Allendale Public School District, UTGO, 4.00%,                     
           5/1/05, Q-SBLF.......................................       325,443
   305,000 Allendale Public School District, UTGO, 4.00%,                     
           5/1/06, Q-SBLF.......................................       309,084
 2,000,000 Battle Creek Downtown Development Authority, 7.30%,                
           5/1/10, Prerefunded 5/1/04 @ 102.....................     2,246,940
 2,000,000 Battle Creek Downtown Development Authority, 7.60%,                
           5/1/16, Prerefunded 5/1/04 @ 102.....................     2,262,560
 2,000,000 Battle Creek Downtown Development Authority, Tax                   
           Increment Revenue,                                                 
           6.90%, 5/1/04........................................     2,154,020
 1,300,000 Berkley School District, GO, 7.00%, 1/1/07, (Insured               
           by FGIC).............................................     1,494,571
 1,700,000 Clintondale Community School District GO, 4.65%,                   
           5/1/03, Q-SBLF.......................................     1,745,509
   518,756 Department of State Police Lease,                                  
           4.95%, 3/10/02 (b)...................................       518,486
 2,000,000 Detroit Edc Res Recovery (AMT),                                    
           6.60%, 5/1/02, Callable 8/31/01 @ 102, (Insured by                 
           FSA).................................................     2,045,400
 1,000,000 Detroit UTGO, Series A, 3.90%, 4/1/02................     1,004,710
 1,000,000 Detroit, GO, 5.00%, 4/1/04 (Insured by FGIC).........     1,042,150
   750,000 Detroit, GO, 6.00%, 4/1/06 (Insured by FGIC).........       823,598
 1,730,000 Dexter Community School District, GO, 6.25%, 5/1/07,               
           Q-SBLF...............................................     1,941,769
   445,000 Farmington Hills Economic Development Corp. Revenue,               
           Botsford Continuing Care, Series A, 5.10%, 2/15/04                 
           (Insured by MBIA)....................................       463,098
   470,000 Farmington Hills Economic Development Corp. Revenue,               
           Botsford Continuing Care, Series A, 5.20%, 2/15/05                 
           (Insured by MBIA)....................................       493,303
   250,000 Frankenmuth School District, UTGO,                                 
           5.50%, 5/1/04, Q-SBLF................................       264,440
   100,000 Frankenmuth School District, UTGO,                                 
           5.50%, 5/1/05, Q-SBLF................................       106,920
   125,000 Frankenmuth School District, UTGO,                                 
           5.50%, 5/1/06, Q-SBLF................................       134,770
   410,000 Frankenmuth School District, UTGO,                                 
           5.50%, 5/1/07, Q-SBLF................................       444,030
   740,000 Grand Haven Area Public Schools,                                   
           5.45%, 5/1/04, Prerefunded 5/1/03 @ 102, (Insured by               
           MBIA)................................................       786,960
   260,000 Grand Haven Area Public Schools,                                   
           5.45%, 5/1/04, Callable 5/1/03 @ 102, (Insured by                  
           MBIA)................................................       274,435
   605,000 Grand Rapids & Kent County Joint Building Authority,               
           GO, 5.50%, 10/1/09...................................       660,696
                                                                [Download Table]

Principal                                                                      
  Amount                    Security Description                      Value    
---------                   --------------------                      -----    
                                                                               

MUNICIPAL BONDS (continued)                                                    
           Michigan (continued)                                                
$  505,000 Grand Rapids & Kent County Joint Building Authority,                
           LTGO, 5.50%, 10/1/06.................................   $    547,683
   535,000 Grand Rapids & Kent County Joint Building Authority,                
           UTGO, 5.50%, 10/1/07.................................        582,310
   510,000 Grand Rapids Charter Township, Porter Hills Obligated               
           Group, 4.10%, 7/1/02.................................        512,208
   205,000 Grand Rapids Charter Township, Porter Hills Obligated               
           Group, 4.20%, 7/1/03.................................        206,417
   210,000 Grand Rapids Charter Township, Porter Hills Obligated               
           Group, 4.25%, 7/1/04.................................        211,825
   200,000 Grand Rapids Charter Township, Porter Hills Obligated               
           Group, 4.35%, 7/1/05.................................        202,072
 1,000,000 Grand Valley State University Revenue, Series A,                    
           3.75%, 6/1/05, (Insured by FGIC).....................      1,008,850
 1,250,000 Greater Detroit Resource Recovery Authority, Series                 
           B, 5.00%, 12/13/02 (Insured by AMBAC)................      1,286,600
   750,000 Kalamazoo Hospital Finance Authority Revenue, Bronson               
           Methodist Hospital, 5.50%, 5/15/08 (Insured by                      
           MBIA)................................................        806,505
 1,000,000 Kalamazoo Hospital Finance Authority, Refunding &                   
           Improvement, Bronson Methodist Hospital, 5.25%,                     
           5/15/05 (Insured by MBIA)............................      1,054,560
 1,295,000 Kenowa Hills Public Schools, UTGO,                                  
           5.50%, 5/1/05, Q-SBLF................................      1,384,148
   500,000 Kent County Airport Facility, Kent County                           
           International Airport, (AMT),                                       
           5.25%, 1/1/04........................................        520,990
   645,000 Kent County Airport Facility, Kent County                           
           International Airport, (AMT), 4.30%, 1/1/05 (Insured                
           by MBIA).............................................        657,694
   505,000 Kent County Airport Facility, Kent County                           
           International Airport, (AMT),                                       
           5.30%, 1/1/05........................................        532,144
 1,150,000 Kent Hospital Finance Authority, Butterworth                        
           Hospital, 4.90%, 1/15/05.............................      1,184,144
 2,000,000 Lake Orion Community School District, GO, 6.20%,                    
           5/1/04, (Insured by AMBAC),                                         
           Q-SBLF...............................................      2,151,960
 1,000,000 Michigan Higher Education Student Loan Authority                    
           Revenue, Series XII-W, (AMT), 4.60%, 9/1/08, (Insured               
           by AMBAC)............................................      1,009,550
 1,000,000 Michigan State Strategic Fund, Limited Obligation                   
           Revenue, Environmental Research Project, 4.75%,                     
           10/1/15, Callable 10/1/03 @ 100, (LOC: Comerica).....      1,000,000
 1,750,000 Michigan State UTGO, 5.00%, 12/1/04..................      1,845,778
 2,000,000 Michigan State, Building Authority Revenue, State                   
           Police Communications -- III,                                       
           5.00%, 10/1/04.......................................      2,099,960
 3,000,000 Michigan State, Comprehensive Transportation, Series                
           B, 5.63%, 5/15/03, Callable 5/15/02 @ 102............      3,121,379

Continued 

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                Michigan Municipal Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]


Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$  320,000 Michigan State, Higher Education Facilities                        
           Authority Revenue, Hope College Project, 4.60%,                    
           10/1/08.............................................   $    321,133
   585,000 Michigan State, Higher Education Facilities                        
           Authority Revenue, Kalamazoo College Project, 5.25%,               
           12/1/02.............................................        602,059
   570,000 Michigan State, Higher Education Facilities                        
           Authority Revenue, Kalamazoo College Project, 5.25%,               
           12/1/03.............................................        595,986
   655,000 Michigan State, Higher Education Facilities                        
           Authority Revenue, Kalamazoo College Project, 5.25%,               
           12/1/04.............................................        691,313
 1,265,000 Michigan State, Higher Education Facility                          
           Authority -- Thomas M. Cooley Law School, 4.75%,                   
           5/1/07, (LOC: National City)........................      1,292,400
 2,525,000 Michigan State, Higher Education Student Loan                      
           Authority Revenue, (AMT), 5.00%, 3/1/07, (Insured by               
           AMBAC)..............................................      2,605,420
 1,000,000 Michigan State, Hospital Finance Authority Revenue,                
           Genesys Health, 7.50%, 10/1/27, Prerefunded 10/1/05                
           @ 100...............................................      1,153,160
    60,000 Michigan State, Hospital Finance Authority Revenue,                
           Sisters of Mercy Health, ETM, 4.60%, 8/15/02,                      
           (Insured by MBIA)...................................         61,190
 1,855,000 Michigan State, Hospital Finance Authority, Bay                    
           Medical Center, Series A, 5.38%, 7/1/06, (Insured by               
           FSA)................................................      1,980,676
 1,875,000 Michigan State, Hospital Finance Authority, Charity                
           Obligated Group, 4.80%, 11/1/17, Prerefunded 11/1/04               
           @ 100...............................................      1,935,675
 2,000,000 Michigan State, Hospital Finance Authority, McLaren                
           Obligated Group, Series A, 5.75%, 10/15/03..........      2,078,440
   370,000 Michigan State, Hospital Finance Authority, Memorial               
           Healthcare Center, Owosso, 4.40%, 11/15/01..........        370,807
 1,000,000 Michigan State, Hospital Finance Authority, St. John               
           Hospital & Medical Center, 5.00%, 5/15/05, (Insured                
           by AMBAC)...........................................      1,055,940
   780,000 Michigan State, Housing Development Authority,                     
           3.70%, 6/1/03, (Insured by MBIA)....................        781,747
   800,000 Michigan State, Housing Development Authority,                     
           3.70%, 12/1/03, (Insured by MBIA)...................        802,272
   810,000 Michigan State, Housing Development Authority,                     
           3.85%, 6/1/04, (Insured by MBIA)....................        812,341
   830,000 Michigan State, Housing Development Authority,                     
           3.85%, 12/1/04, (Insured by MBIA)...................        832,797
 1,300,000 Michigan State, Housing Development Authority,                     
           Rental Housing Revenue, Series A, 5.15%, 4/1/02,                   
           (Insured by AMBAC)..................................      1,318,798
 1,000,000 Michigan State, Municipal Bond Authority, Pooled                   
           Projects, Series B, 5.10%, 10/1/04..................      1,054,490
                                                                [Download Table]

Shares or                                                                     
Principal                                                                     
  Amount                    Security Description                      Value   
---------                   --------------------                      -----   
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$  750,000 Michigan State, Public Power Agency, Belle River                   
           Project, Series A, 5.70%, 1/1/03.....................   $   776,700
 1,000,000 Michigan State, South Central Power Agency, Power                  
           Supply System Revenue, 5.80%, 11/1/05, (Insured by                 
           MBIA)................................................     1,087,850
   615,000 Michigan State, Strategic Fund, Hope Network Project,              
           Series B, 4.75%, 9/1/07, (LOC: First of America).....       632,085
 2,500,000 Michigan State, Trunk Line, Series A,                              
           5.50%, 10/1/02.......................................     2,575,324
 2,270,000 Michigan State, Underground Storage Tank, Financial                
           Assurance Authority, Series I, 6.00%, 5/1/06,                      
           (Insured by AMBAC)...................................     2,496,433
   335,000 Muskegon Heights Water System, 5.25%, 11/1/06,                     
           (Insured by MBIA)....................................       359,606
 2,000,000 Oakland County Development Corp., Cranbrook, 6.38%,                
           11/1/14, Prerefunded 11/1/04 @ 100...................     2,190,220
 1,200,000 Oakland County Economic Development Corp., Boardwalk               
           Shopping Center, 4.38%, 1/1/09, Mandatory Put 7/1/03               
           @ 100, (LOC: Banc One)...............................     1,200,000
   995,000 Oakland County Economic Development Corp., Sugartree               
           Shopping Center, 4.75%, 1/1/14, Mandatory Put 7/1/03               
           @ 100, (LOC: Bank One)...............................       995,000
 1,100,000 Oxford Area Community School, GO, 6.00%, 5/1/05,                   
           (Insured by FGIC) Q-SBLF.............................     1,194,446
   690,000 South Lyon Community Schools, 5.25%, 5/1/07, Q-SBLF..       738,452
 1,575,000 South Redford School District, GO, 5.25%, 5/1/09,                  
           Prerefunded 5/1/07 @ 100, (Insured by FGIC) Q-SBLF...     1,695,976
 1,025,000 Washtenaw Community College, GO, 4.70%, 4/1/03,                    
           (Insured by FGIC)....................................     1,053,157
 1,000,000 Wyandotte Electric Revenue, 6.20%, 10/1/03, (Insured               
           by MBIA).............................................     1,066,650
                                                                   -----------
           Total Municipal Bonds................................    82,671,029
                                                                   -----------
INVESTMENT COMPANIES (1.7%):                                                  
   144,596 Dreyfus Tax Exempt Money Market Fund.................       144,596
 1,316,314 Federated Tax Exempt Money Market Fund...............     1,316,314
                                                                   -----------
           Total Investment Companies...........................     1,460,910
                                                                   -----------
Total Investments (Cost $81,483,105) (a) -- 100.0%...............   84,131,939
Liabilities in excess of other assets -- 0.0%....................      (6,905)
                                                                   -----------
Net Assets -- 100.0%.............................................  $84,125,034
                                                                   ===========

Continued 

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                Michigan Municipal Bond Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            
-------                                                                         
(a) Represents cost for financial reporting and Federal income tax purposes and 
   differs from value by net unrealized appreciation of securities as follows:

                                                                [Download Table]
                                                                             
Unrealized appreciation.......................................... $2,651,861 
Unrealized depreciation..........................................     (3,027)
                                                                  ---------- 
Net unrealized appreciation...................................... $2,648,834 
                                                                  ========== 

(b) Illiquid security. Market value of illiquid securities is .62% of total     
market value of securities held in the Fund.                            
AMBAC -- AMBAC Indemnity Corp.                                                  
AMT -- Alternative Minimum Tax Paper                                            
ETM -- Escrowed to Maturity                                                     
FGIC -- Financial Guaranty Insurance Corp.                                      
FSA -- Financial Security Assurance                                             
GO -- General Obligation                                                        
LOC -- Letter of Credit                                                         
MBIA -- Municipal Bond Insurance Association                                    
Q-SBLF -- Qualified-School Bond Loan Fund                                       
UTGO -- Unlimited Tax General Obligation                                        

See Notes to Financial Statements.

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]

 Principal                                                                     
  Amount                    Security Description                      Value    
 ---------                  --------------------                      -----    
                                                                               

BANKERS ACCEPTANCES (1.3%):                                                    
            Banking (0.6%):                                                    
$ 5,000,000 Bank of America, 4.31%**, 8/13/01...................   $  4,992,917
                                                                   ------------
            Foreign Banking (0.7%):                                            
  5,000,000 Toronto Dominion Bank, 4.84%**, 8/9/01..............      4,994,722
                                                                   ------------
            Total Bankers Acceptances...........................      9,987,639
                                                                   ------------
COMMERCIAL PAPER (35.1%):                                                      
            Automotive (1.2%):                                                 
  5,000,000 Ford Motor Credit Co., 5.84%**, 9/20/01.............      4,961,112
  5,000,000 General Motors Acceptance Corp., 5.73%**, 9/28/01...      4,955,694
                                                                   ------------
                                                                      9,916,806
                                                                   ------------
            Banking (5.0%):                                                    
  5,000,000 Bank of Montreal, 3.93**, 8/16/01...................      4,991,896
 10,000,000 JP Morgan Chase, 3.90%**, 8/6/01....................      9,994,625
  5,000,000 JP Morgan Chase, 3.66%**, 8/22/01...................      4,989,383
 10,000,000 JP Morgan Chase, 3.71%**, 8/31/01...................      9,969,250
  5,000,000 Wells Fargo Co., 3.88%**, 8/3/01....................      4,998,928
  5,000,000 Wells Fargo Co., 3.72%**, 8/29/01...................      4,985,611
                                                                   ------------
                                                                     39,929,693
                                                                   ------------
            Beverages -- Soft Drinks (0.6%):                                   
  5,000,000 Coca Cola Co., 4.14%**, 8/30/01.....................      4,983,567
                                                                   ------------
            Communication (0.6%):                                              
  5,000,000 Bellsouth Telecommunications, 3.72%**, 8/9/01.......      4,995,889
                                                                   ------------
            Finance (7.5%):                                                    
  5,000,000 American Express Co., 3.73%**, 8/21/01..............      4,989,694
  5,000,000 American Express Co., 3.77%**, 8/23/01..............      4,988,542
 10,000,000 American Express Co., 3.70%**, 9/11/01..............      9,958,089
  5,000,000 General Electric Capital Corp., 4.20%**, 8/14/01....      4,989,708
  5,000,000 General Electric Capital Corp., 4.14%**, 8/28/01....      4,986,050
  5,000,000 General Electric Capital Corp., 4.81%**, 9/5/01.....      4,977,153
  5,000,000 Goldman Sachs Group, LP, 3.95%**, 8/8/01............      4,996,189
  5,000,000 Goldman Sachs Group, LP, 3.74%**, 10/9/01...........      4,964,542
  5,000,000 Goldman Sachs Group, LP, 3.83%**, 10/12/01..........      4,962,200
 10,000,000 Sony Capital Corp., 3.96%**, 8/7/01.................      9,993,449
                                                                   ------------
                                                                     59,805,616
                                                                   ------------
            Food -- Confectionery (0.6%):                                      
  5,000,000 Nestle Capital Corp., 6.04%**, 9/14/01..............      4,964,678
                                                                   ------------
            Foreign Banking (9.6%):                                            
  5,000,000 Bank of Nova Scotia, 3.71%**, 9/6/01................      4,981,600
  5,000,000 Banque Nationale de Paris, 3.62%**, 9/24/01.........      4,971,894
                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

COMMERCIAL PAPER (continued)                                                  
            Foreign Banking (continued)                                       
$ 7,000,000 Banque Nationale de Paris, 3.62%**, 9/24/01........   $  6,960,651
  5,000,000 Deutsche Bank AG, 3.75%**, 8/6/01..................      4,997,406
  5,000,000 Deutsche Bank AG, 3.97%**, 8/24/01.................      4,987,446
 10,000,000 Deutsche Bank AG, 4.78%**, 9/13/01.................      9,944,218
  5,000,000 Deutsche Bank AG, 3.62%**, 9/26/01.................      4,972,039
  5,000,000 Rabobank Nederland, 5.10%**, 8/20/01...............      4,986,885
  5,000,000 Societe Generale North, 3.78%**, 9/7/01............      4,980,729
  5,000,000 Societe Generale North, 6.11%**, 9/17/01...........      4,961,878
  5,000,000 Societe Generale North, 3.75%**, 9/25/01...........      4,972,653
  4,800,000 Societe Generale North, 3.85%**, 1/22/02...........      4,712,536
  3,900,000 UBS Financial, Inc., 3.72%**, 8/1/01...............      3,900,000
  5,000,000 UBS Financial, Inc., 3.80%**, 8/15/01..............      4,992,650
                                                                  ------------
                                                                    75,322,585
                                                                  ------------
            Industrial Goods & Services (0.6%):                               
  4,932,000 EI DuPont De Nemours, 3.93%**, 8/10/01.............      4,927,191
                                                                  ------------
            Insurance (2.5%):                                                 
 10,000,000 AIG Funding, Inc., 3.69%**, 9/4/01.................      9,965,339
  5,000,000 AIG Funding, Inc., 3.65%**, 9/19/01................      4,975,296
  5,000,000 Prudential Funding, 3.70%**, 10/11/01..............      4,963,908
                                                                  ------------
                                                                    19,904,543
                                                                  ------------
            Multi-Media (1.3%):                                               
  5,000,000 McGraw Hill, 4.60%**, 8/17/01......................      4,989,934
  5,000,000 McGraw Hill, 4.18%**, 8/27/01......................      4,985,122
                                                                  ------------
                                                                     9,975,056
                                                                  ------------
            Oil Companies -- Integrated (5.6%):                               
 25,000,000 BP PLC, 3.88%**, 8/1/01............................     25,000,000
 10,000,000 Chevron, 3.69%**, 10/15/01.........................      9,923,958
 10,000,000 Chevron, 3.60%**, 11/14/01.........................      9,896,167
                                                                  ------------
                                                                    44,820,125
                                                                  ------------
            Total Commercial Paper.............................    279,545,749
                                                                  ------------
CORPORATE NOTES & BONDS (13.9%):                                              
            Banking (0.8%):                                                   
  6,000,000 Wells Fargo Co., 6.80%, 5/15/02....................      6,121,895
                                                                  ------------
            Brokers (3.5%):                                                   
  3,000,000 Merrill Lynch & Co., Series B, 4.05%*, 9/17/01,                   
            MTN................................................      3,001,242
  5,000,000 Merrill Lynch & Co., Series B, 3.83%*, 10/22/01,                  
            MTN................................................      5,006,285
  2,500,000 Merrill Lynch & Co., Series B, 7.57%, 11/9/01,                    
            MTN................................................      2,523,080
  8,730,000 Merrill Lynch & Co., Series B, 5.71%, 1/15/02,                    
            MTN................................................      8,802,993
  8,115,000 Merrill Lynch & Co., Series B, 5.73%, 2/26/02,                    
            MTN................................................      8,200,294
                                                                  ------------
                                                                    27,533,894
                                                                  ------------

Continued 

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                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

CORPORATE NOTES & BONDS (continued)                                           
            Finance (5.5%):                                                   
$11,050,000 Associates Corp., NA, 5.50%, 2/15/02...............   $ 11,150,697
  4,455,000 Associates Corp., NA, 7.50%, 4/15/02...............      4,540,361
  8,170,000 Citigroup, Inc., 7.45%, 6/6/02.....................      8,402,019
  5,000,000 General Electric Capital Corp., 6.15%, 11/5/01.....      5,014,171
  3,000,000 General Electric Capital Corp., 6.29%, 12/15/01....      3,008,860
 10,000,000 Lexington Financial Services, 3.89%*, 8/1/01, (LOC:               
            ABM/AMRO)..........................................     10,000,000
  2,300,000 Wells Fargo Co., 6.38%, 11/15/01...................      2,315,831
                                                                  ------------
                                                                    44,431,939
                                                                  ------------
            Personal Credit Institutions (0.7%):                              
  5,650,000 Chancellor of Ridgefield, Inc., 3.89%*, 8/2/01,                   
            (LOC: Bank of America).............................      5,650,000
                                                                  ------------
            Real Estate (2.2%):                                               
 17,340,000 Germain Properties, 3.85%*, 8/2/01, (LOC: Bank                    
            One)...............................................     17,340,000
                                                                  ------------
            Religious Organizations (0.3%):                                   
  2,460,000 Northside Christian Church, 4.05%*, 8/2/01, (LOC:                 
            Bank One)..........................................      2,460,000
                                                                  ------------
            Retail -- Supermarkets (0.9%):                                    
  7,300,000 MARK-LYNN Foods, Inc., 3.89%*, 8/2/01, (LOC: Bank                 
            of America)........................................      7,300,000
                                                                  ------------
            Total Corporate Notes & Bonds......................    110,837,728
                                                                  ------------
DEMAND NOTES (22.9%):                                                         
            Banking & Finance (0.6%):                                         
  5,000,000 Cornerstone Funding Corp, 3.89%*, 8/1/01, (LOC: Sun               
            Trust).............................................      5,000,000
                                                                  ------------
            Beverages -- Alcoholic (0.7%):                                    
  5,910,000 New Belgium Brewing Co., Inc., 3.90%*, 8/1/01,                    
            (LOC: Keybank).....................................      5,910,000
                                                                  ------------
            Building -- Residential/Commercial (0.5%):                        
  3,910,000 Zanetos Partnership Project, 3.87%*, 8/1/01, (LOC:                
            National City Bank)................................      3,910,000
                                                                  ------------
            Finance (3.4%):                                                   
  4,462,000 Capital One Funding Corp., 3.85%*, 8/2/01, (LOC:                  
            Bank One)..........................................      4,462,000
  3,825,000 Labelle Capital Funding L.L.C., 3.97%*, 8/2/01,                   
            (LOC: National City Bank)..........................      3,825,000
  5,000,000 MBE Investment Co., 3.90%*, 8/1/01,                               
            (LOC: ABN/AMRO)....................................      5,000,000
  8,890,000 PRD Finance L.L.C., 3.84%*, 8/1/01, (LOC: National                
            City Bank).........................................      8,890,000
  5,000,000 Sheperd Capital L.L.C., 3.97%*, 8/2/01, (LOC:                     
            Comerica Bank).....................................      5,000,000
                                                                  ------------
                                                                    27,177,000
                                                                  ------------
                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

DEMAND NOTES (continued)                                                      
           Health Care (1.8%):                                                
$7,750,000 American Healthcare Funding L.L.C., 3.90%*, 8/1/01,                
           (LOC: ABN/AMRO).....................................   $  7,750,000
 6,850,000 Idaho Associates L.L.C., 3.85%*, 8/1/01, (LOC:                     
           ABN/AMRO)...........................................      6,850,000
                                                                  ------------
                                                                    14,600,000
                                                                  ------------
           Hotels & Lodging (0.3%):                                           
 2,250,000 Central Michigan Inns, 3.95%*, 8/2/01, (LOC:                       
           ABN/AMRO)...........................................      2,250,000
                                                                  ------------
           Machinery -- General Industrial (1.7%):                            
 6,680,000 Atlas Industries, Inc., 3.87%*, 8/1/01,                            
           (LOC: National City Bank)...........................      6,680,000
 6,808,000 Precision Tool and Die, 3.87%*, 8/1/01, (LOC:                      
           National City Bank).................................      6,808,000
                                                                  ------------
                                                                    13,488,000
                                                                  ------------
           Manufacturing -- Capital Goods (2.3%):                             
 8,305,000 Buckeye Corrugated, Inc., 3.90%*, 8/1/01, (LOC:                    
           Keybank)............................................      8,305,000
10,020,000 Jackson 2000, 3.90%*, 8/1/01, (LOC: Keybank)........     10,020,000
                                                                  ------------
                                                                    18,325,000
                                                                  ------------
           Paints & Related Products (0.5%):                                  
 3,725,000 PCI Paper Conversions, Inc., 3.90%*, 8/1/01, (LOC:                 
           Keybank)............................................      3,725,000
                                                                  ------------
           Real Estate (6.7%):                                                
 3,120,000 Bayloff Properties L.L.C., 3.87%*, 8/1/01, (LOC:                   
           National City Bank).................................      3,120,000
 5,715,000 GTB Properties L.L.C., 3.99%*, 8/1/01, (LOC:                       
           ABN/AMRO)...........................................      5,715,000
 5,725,000 Harry W. Albright, Jr., 4.00%*, 8/2/01, (LOC:                      
           ABN/AMRO)...........................................      5,725,000
 5,255,000 HWP Co., Ltd. Project, 3.87%*, 8/1/01, (LOC:                       
           National City Bank).................................      5,255,000
12,840,000 Pittsburgh Technical Institute, 3.87%*, 8/1/01,                    
           (LOC: National City Bank)...........................     12,840,000
 3,000,000 SF Tarns L.L.C., 3.89%*, 8/1/01, (LOC: ABN/AMRO)....      3,000,000
13,430,000 Sharonville Realty Enterprises, 3.90%*, 8/2/01,                    
           (LOC: Bank One).....................................     13,430,000
 4,450,000 Zeigler Realty L.L.C, 4.00%*, 8/2/01, (LOC: National               
           City Bank)..........................................      4,450,000
                                                                  ------------
                                                                    53,535,000
                                                                  ------------
           Retail -- General Merchandise (0.6%):                              
 4,500,000 Royal Town Center L.L.C. Project, 3.90%*, 8/1/01,                  
           (LOC: Comerica Bank)................................      4,500,000
                                                                  ------------
           Services (1.0%):                                                   
 7,825,000 Mr. K Enterprises, 3.99%*, 8/1/01, (LOC: National                  
           Australia Bank).....................................      7,825,000
                                                                  ------------

Continued 

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     Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

DEMAND NOTES (continued)                                                      
            Steel -- Producers (0.7%):                                        
$ 5,630,000 Bing Steel Managment, 3.99%*, 8/1/01, (LOC:                       
            ABN/AMRO)..........................................   $  5,630,000
                                                                  ------------
            Tools -- Hand Held (1.3%):                                        
 10,500,000 SGS Tool Co., 3.87%*, 8/1/01, (LOC: Bank One)......     10,500,000
                                                                  ------------
            Urban and Community Development (0.5%):                           
  3,600,000 Beavercreek Enterprises, 3.87%*, 8/1/01, (LOC:                    
            National City Bank)................................      3,600,000
                                                                  ------------
            Utilities -- Waste Disposal (0.3%):                               
  2,300,000 Texas Disposal Systems, 3.89%*, 8/2/01, (LOC: Bank                
            of America)........................................      2,300,000
                                                                  ------------
            Total Demand Notes.................................    182,275,000
                                                                  ------------
MUNICIPAL BONDS (7.4%):                                                       
            Educational Services (1.9%):                                      
  4,365,000 Alamo Heights Texas Higher Education Facilities                   
            Corp., Higher Education Revenue, 3.89%*, 8/2/01,                  
            (LOC: Bank One)....................................      4,365,000
 10,395,000 Roman Catholic Diocese Raleigh North Carolina,                    
            Series A, 3.89%*, 8/2/01, (LOC: Bank of America)...     10,395,000
                                                                  ------------
                                                                    14,760,000
                                                                  ------------
            Manufacturing -- Consumer Goods (0.5%):                           
  4,000,000 Polk County Florida, Industrial Development                       
            Authority, Industrial Development Revenue, 3.89%*,                
            8/2/01, (LOC: Bank of America).....................      4,000,000
                                                                  ------------
            Medical -- Hospital (0.6%):                                       
  5,000,000 Michigan Hospital Association Financial Corp.,                    
            3.89%*, 8/2/01, (LOC: ABN/AMRO)....................      5,000,000
                                                                  ------------
            Urban and Community Development (4.4%):                           
  2,400,000 Caledonia Wisconsin Industrial Development Revenue,               
            Calendonia Properties, L.L.C., 3.90%*, 8/1/01,                    
            (LOC: Bank One)....................................      2,400,000
  2,895,000 City of Hornell Development Agency, Industrial                    
            Development Revenue, 3.90%*, 8/1/01, (LOC: Key                    
            Bank)..............................................      2,895,000
  2,200,000 Cloquet Minnesota Industrial Revenue, Potlatch                    
            Corp., 3.85%*, 8/1/01, (LOC: Wachovia Bank), Series               
            1996-B.............................................      2,200,000
 11,000,000 Dallas County Iowa, Industrial Development Revenue,               
            3.90%*, 8/2/01, (LOC: U.S. Bancorp)................     11,000,000
  1,910,000 Indianapolis Indiana, Economic Development Revenue,               
            3.90%*, 8/1/01, (LOC: Keybank).....................      1,910,000
                                                                [Download Table]

 Principal                                                                    
  Amount                    Security Description                     Value    
----------                  --------------------                     -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
            Urban and Community Development (continued)                       
$ 6,765,000 Michigan State Strategic Fund Limited Obligation                  
            Revenue, Environmental Research Institute, 3.90%*,                
            8/1/01, (LOC: Comerica Bank).......................   $  6,765,000
  1,600,000 Michigan State Strategic Fund, Limited Obligation                 
            Revenue, Carpenter Limited Project, 3.85%*, 8/1/01,               
            (LOC: ABN/AMRO)....................................      1,600,000
  1,650,000 Michigan State Strategic Fund, Limited Obligation                 
            Revenue, Series B, Waterland, 3.99%*, 8/1/01, (LOC:               
            ABN/AMRO)..........................................      1,650,000
  4,390,000 Oswego County New York Industrial Development                     
            Agency, Facilities Revenue, 3.90%*, 8/1/01, (LOC:                 
            Keybank)...........................................      4,390,000
                                                                  ------------
                                                                    34,810,000
                                                                  ------------
            Total Municipal Bonds..............................     58,570,000
                                                                  ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS (8.3%):                                    
            Fannie Mae (2.9%):                                                
  5,000,000 4.47%**, 10/4/01...................................      4,964,444
 11,500,000 4.63%, 10/15/01....................................     11,514,339
  6,910,000 6.63%, 1/15/02.....................................      7,000,190
                                                                  ------------
                                                                    23,478,973
                                                                  ------------
            Federal Farm Credit Bank (0.9%):                                  
  7,350,000 5.25%, 5/1/02......................................      7,432,021
                                                                  ------------
            Federal Home Loan Bank (3.6%):                                    
  8,000,000 6.51%, 11/27/01....................................      8,060,857
 10,000,000 6.75%, 2/1/02......................................     10,131,196
  9,520,000 5.13%, 2/26/02.....................................      9,588,577
                                                                  ------------
                                                                    27,780,630
                                                                  ------------
            Freddie Mac (0.9%):                                               
  7,000,000 5.50%, 5/15/02.....................................      7,095,772
                                                                  ------------
            Total U.S. Government Agency Obligations...........     65,787,396
                                                                  ------------
YANKEE CERTIFICATES OF DEPOSIT (3.1%):                                        
            Foreign Banking (3.1%):                                           
  5,000,000 Bayerische Landesbank, 4.39%, 4/11/02..............      5,001,010
  5,000,000 Canadian Imperial Bank of Commerce, 4.27%,                        
            4/23/02............................................      5,000,706
  5,000,000 Commerzbank AG, 6.87%, 8/13/01.....................      5,000,251
  5,000,000 Rabobank Nederland, 6.83%, 8/28/01.................      5,000,333
  5,000,000 Toronto Dominion Bank, 4.63%, 3/28/02..............      5,008,364
                                                                  ------------
            Total Yankee Certificates of Deposit...............     25,010,664
                                                                  ------------
CERTIFICATES OF DEPOSIT (2.5%):                                               
            Banking (1.9%):                                                   
  5,000,000 National City Bank, 6.98%, 8/2/01..................      4,999,997
  5,000,000 National City Bank, 5.22%, 1/11/02.................      5,000,000
  5,000,000 US Bank, NA, 4.55%, 4/16/02........................      5,000,000
                                                                  ------------
                                                                    14,999,997
                                                                  ------------

Continued 

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(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

 Shares or                                                                     
 Principal                                                                     
  Amount                    Security Description                      Value    
 ---------                  --------------------                      -----    
                                                                               

CERTIFICATES OF DEPOSIT (continued)                                            
            Foreign Banking (0.6%):                                            
$ 5,000,000 UBS Financial, Inc., 6.89%, 8/22/01.................   $  5,000,067
                                                                   ------------
            Total Certificates of Deposit.......................     20,000,064
                                                                   ------------
INVESTMENT COMPANIES (6.7%):                                                   
 34,705,793 AIM Liquid Assets Portfolio.........................     34,705,793
 18,586,701 Goldman Sachs Financial Square Prime Obligations....     18,586,701
                                                                   ------------
            Total Investment Companies..........................     53,292,494
                                                                   ------------
Total Investments (Cost $805,306,734) (a) -- 101.2%..............   805,306,734
Liabilities in excess of other assets -- (1.2)%..................   (9,262,925)
                                                                   ------------
Net Assets -- 100.0%.............................................  $796,043,809
                                                                   ============

-------                                                                         
(a) Cost for federal income tax and financial reporting purposes is the same.   
(b) Rule 144A, Section 4(2) or other security which is restricted as to resale  
to institutional investors. The Fund's advisor has determined these     
securities to be liquid.                                                
* Variable rate security. Rate presented represents rate in effect at July 31,  
2001. Maturity date reflects next rate change date.                         
** Effective yield at purchase.                                                 
AG -- Aktiengesellschaft (German Stock Company)                                 
LLC -- Limited Liability Corp.                                                  
LOC -- Letter of Credit                                                         
MTN -- Medium Term Note                                                         
PLC -- Public Limited Corp. (British)                                           

See Notes to Financial Statements.

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                Government Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

                                                                [Download Table]


 Principal                                                                     
  Amount                    Security Description                      Value    
 ---------                  --------------------                      -----    
                                                                               

U.S. GOVERNMENT AGENCY OBLIGATIONS (79.2%):                                    
            Fannie Mae (30.3%):                                                
$20,000,000 3.86%**, 8/1/01.....................................   $ 19,999,999
  3,100,000 3.76%**, 8/3/01.....................................      3,099,356
  5,000,000 5.05%**, 8/9/01.....................................      4,995,733
  5,000,000 3.87%**, 8/9/01.....................................      4,994,522
  8,800,000 3.68%**, 8/13/01....................................      8,789,235
  5,000,000 3.67%**, 8/23/01....................................      4,988,817
  2,750,000 6.07%, 8/27/01......................................      2,754,536
  5,000,000 3.62%**, 9/7/01.....................................      4,981,500
  5,000,000 3.62%**, 9/10/01....................................      4,980,000
 10,000,000 6.74%, 9/19/01......................................     10,037,431
  5,000,000 3.66%**, 9/27/01....................................      4,971,263
  5,000,000 6.40%, 9/27/01......................................      5,013,191
  5,000,000 4.47%**, 10/4/01....................................      4,961,067
  5,000,000 4.51%**, 10/11/01...................................      4,956,513
  2,000,000 4.63%, 10/15/01.....................................      2,002,226
  7,000,000 6.56%, 10/16/01.....................................      7,037,680
  5,000,000 6.50%, 11/14/01.....................................      5,039,050
  5,000,000 4.71%**, 11/16/01...................................      4,933,422
  5,000,000 4.49%**, 12/7/01....................................      4,924,089
  5,000,000 4.11%**, 12/14/01...................................      4,925,000
  3,600,000 6.29%, 2/11/02......................................      3,629,026
  1,500,000 7.50%, 2/11/02......................................      1,527,888
  2,315,000 6.23%, 3/1/02.......................................      2,342,882
  6,428,000 5.38%, 3/15/02......................................      6,492,840
  3,015,000 6.63%, 4/15/02......................................      3,074,853
                                                                   ------------
                                                                    135,452,119
                                                                   ------------
            Federal Farm Credit Bank (6.0%):                                   
  5,000,000 3.97%*, 8/7/01......................................      4,999,903
  5,000,000 3.66%**, 8/27/01....................................      4,986,819
  5,000,000 5.01%**, 10/15/01...................................      4,949,479
  5,000,000 4.78%**, 11/26/01...................................      4,924,925
  1,665,000 6.63%, 2/1/02.......................................      1,681,606
  5,000,000 5.25%, 5/1/02.......................................      5,055,796
                                                                   ------------
                                                                     26,598,528
                                                                   ------------
            Federal Home Loan Bank (20.2%):                                    
 10,000,000 3.90%**, 8/1/01.....................................     10,000,000
 10,000,000 3.69%**, 8/3/01.....................................      9,997,956
  5,000,000 4.08%*, 8/9/01......................................      5,000,866
  8,000,000 3.69%**, 8/10/01....................................      7,992,640
  6,850,000 3.67%**, 8/15/01....................................      6,840,250
  5,000,000 3.68%**, 8/22/01....................................      4,989,296
  5,000,000 3.89%**, 8/29/01....................................      4,985,028
  5,000,000 4.79%**, 8/31/01....................................      4,980,500
  6,350,000 5.88%, 9/17/01......................................      6,365,358
  5,000,000 6.50%, 9/19/01......................................      4,999,608
  7,740,000 6.00%, 11/15/01.....................................      7,788,811
  6,000,000 6.70%, 12/19/01.....................................      6,058,800
  5,000,000 6.75%, 2/1/02.......................................      5,065,598
  5,000,000 4.25%, 5/3/02.......................................      4,999,849
                                                                   ------------
                                                                     90,064,560
                                                                   ------------
            Freddie Mac (20.6%):                                               
  5,000,000 4.44%**, 8/6/01.....................................      4,996,958
  5,000,000 3.70%**, 8/7/01.....................................      4,996,934
                                                                [Download Table]

 Shares or                                                                    
 Principal                                                                    
  Amount                    Security Description                     Value    
 ---------                  --------------------                     -----    
                                                                              

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)                                
            Freddie Mac (continued)                                           
$ 5,000,000 3.68%**, 8/7/01....................................   $  4,996,934
 10,000,000 3.67%**, 8/8/01....................................      9,992,883
  5,000,000 5.08%**, 8/16/01...................................      4,989,688
 10,000,000 3.67%**, 8/21/01...................................      9,979,667
 10,000,000 3.68%**, 8/28/01...................................      9,972,550
  1,700,000 3.72%**, 8/30/01...................................      1,695,003
 10,000,000 3.66%**, 8/30/01...................................      9,970,608
  5,000,000 4.64%**, 9/13/01...................................      4,972,946
  5,000,000 3.60%**, 9/25/01...................................      4,972,691
  3,464,000 3.69%**, 9/27/01...................................      3,443,926
  1,300,000 6.11%, 11/20/01....................................      1,307,585
 10,615,000 4.75%, 12/14/01....................................     10,650,008
  5,000,000 5.23%**, 1/3/02....................................      4,893,007
                                                                  ------------
                                                                    91,831,388
                                                                  ------------
            Sallie Mae (2.1%):                                                
  9,500,000 4.03%*, 8/7/01.....................................      9,498,675
                                                                  ------------
            Total U.S. Government Agency Obligations...........    353,445,270
                                                                  ------------
REPURCHASE AGREEMENTS (14.6%):                                                
            Repurchase Agreements (14.6%):                                    
 65,000,000 Morgan Stanley Dean Witter, 3.84%, 8/1/01                         
            (Collaterallized by a Fannie Mae Note).............     65,000,000
                                                                  ------------
            Total Repurchase Agreements........................     65,000,000
                                                                  ------------
INVESTMENT COMPANIES (7.2%):                                                  
 12,516,178 Aim Funds Stit Government & Agency Money Market....     12,516,178
 19,548,346 Goldman Sachs Financial Square Government Fund.....     19,548,346
                                                                  ------------
            Total Investment Companies.........................     32,064,524
                                                                  ------------
Total Investments (Cost $450,509,794) (a) -- 101.0%.............   450,509,794
Other liabilities in excess of assets -- 1.0%...................   (4,493,564)
                                                                  ------------
NET ASSETS -- 100.0%............................................  $446,016,230
                                                                  ============

-------                                                                         
(a) Cost for federal income tax and financial reporting purposes is the same.   
* Variable rate security. Rate presented represents rate in effect at July 31,  
2001. Maturity date reflects next rate change date.                         
** Effective yield at purchase.                                                 

See Notes to Financial Statements.

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                        Michigan Municipal Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                    Security Description                     Value    
---------                   --------------------                     -----    
                                                                              

MUNICIPAL BONDS (81.7%):                                                      
           Michigan (78.9%):                                                  
$1,000,000 Bay City Michigan School District,                                 
           6.20%, 5/1/02, Q-SBLF................................  $  1,040,751
   830,000 Clinton Township Economic Development Corp., Pointe                
           Village Square, (AMT),                                             
           3.70%*, 8/1/01, (LOC: National City).................       830,000
   965,000 Dearborn Michigan, Sewage Disposal System, 6.90%,                  
           4/1/02, (Insured by MBIA)............................       987,634
 4,725,000 Delta County Economic Development Corp., Mead                      
           Escanaba Paper Co., Series D,                                      
           2.75%*, 8/1/01, (LOC: Credit Suisse).................     4,725,000
 2,360,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., (AMT),                                                  
           2.80%*, 8/1/01, (LOC: UBS AG)........................     2,360,000
 3,200,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series F, 2.75%*, 8/1/01, (LOC: Bank of                 
           Nova Scotia).........................................     3,200,000
 2,200,000 Delta County Economic Development Corp., Series E,                 
           2.75%*, 8/1/01,                                                    
           (LOC: Bank of Nova Scotia)...........................     2,200,000
 1,290,000 Farmington Hills Education, Marketing Displays,                    
           (AMT), 4.25%*, 9/1/01,                                             
           (LOC: Comerica Bank).................................     1,290,000
   310,000 Farmington Hills, Economic Development Corp.,                      
           Brookfield, 2.85%*, 8/2/01,                                        
           (LOC: Comerica Bank).................................       310,000
 2,850,000 Genesee County Economic Development Corp., Rawcar                  
           Group, (AMT),                                                      
           2.90%*, 8/2/01, (LOC: National City Bank)............     2,850,000
 7,000,000 Genesee County Economic Development Corp., Rue                     
           Properties, (AMT),                                                 
           2.80%*, 8/2/01, (LOC: Bank of America)...............     7,000,000
 1,200,000 Genesee County Economic Development, Atlas                         
           Technologies Inc., (AMT),                                          
           3.00%*, 8/1/01, (LOC: Bank One)......................     1,200,000
   670,000 Grand Rapids Building Authority, GO, Series 2000,                  
           4.40%, 8/1/01........................................       670,000
 5,300,000 Grand Rapids Industrial Development, Rowe                          
           International, 3.05%*, 8/1/01,                                     
           (LOC: Chase Manhattan Bank)..........................     5,300,000
 1,000,000 Jackson County Economic Development Corp., Vista                   
           Grande Villa Project, (AMT), 2.75%*, 8/1/01, (LOC:                 
           ABN/AMRO)............................................     1,000,000
 1,810,000 Kalamazoo Hospital Finance Authority, Hospital                     
           Facility Revenue, Refunding & Improvement, Bronson                 
           Methodist Hospital, 4.95%, 5/15/02, (Insured by                    
           MBIA)................................................     1,833,188
   500,000 Kent County Refuse Disposal System, GO, Series A,                  
           4.63%, 11/1/01.......................................       502,038
 1,000,000 Lake Orion Community School District, 6.05%, 5/1/02,               
           (Insured by AMBAC)                                                 
           Q-SBLF...............................................     1,024,948
   770,000 Lansing Economic Development Corp., LGH Office                     
           Building, (AMT), 4.20%*, 8/15/01, (LOC: Comerica                   
           Bank)................................................       770,000

                                                                [Download Table]

Principal                                                                      
  Amount                    Security Description                      Value    
---------                   --------------------                      -----    
                                                                               

MUNICIPAL BONDS (continued)                                                    
           Michigan (continued)                                                
$1,455,000 Leelanau County Economic Development Corp., American                
           Mutual Insurance Co., 3.00%*, 12/15/01,                             
           (LOC: National City Bank)............................   $  1,455,000
 3,100,000 Lenawee County Economic Development Corp., Rima                     
           Manufacturing, Co. Project, (AMT), 2.95%*, 8/1/01,                  
           (LOC: Keybank).......................................      3,100,000
 1,200,000 Marquette County Economic Development Corp., Pioneer                
           Labs, Inc., (AMT),                                                  
           2.93%*, 8/1/01, (LOC: Bank One)......................      1,200,000
 1,225,000 Michigan Higher Education, Student Loan Authority,                  
           2.65%, 3/1/02,                                                      
           (Insured by AMBAC)...................................      1,225,000
 1,500,000 Michigan Municipal Bond Authority, Series C-1, 5.00%,               
           8/23/01..............................................      1,500,607
 3,600,000 Michigan Municipal Bond Authority, Series C-2, 5.00%,               
           8/23/01,                                                            
           (LOC: Morgan Guaranty Trust).........................      3,601,787
 1,000,000 Michigan State Building Authority, Series II, 6.10%,                
           10/1/01..............................................      1,002,876
 5,000,000 Michigan State Grant, Anticipatory Notes, Series B,                 
           (AMT), 2.80%*, 8/1/01,                                              
           (Insured by FSA).....................................      5,000,000
 1,900,000 Michigan State Hospital Financial Authority, Mount                  
           Clemens General Hospital,                                           
           2.65%*, 8/2/01, (LOC: Comerica Bank).................      1,900,000
 1,520,000 Michigan State Housing Development Authority Rental                 
           Revenue, Series B, (AMT), 2.55%*, 8/1/01, (LOC: Helba               
           Bank) ...............................................      1,520,000
 3,500,000 Michigan State Housing Development Authority, Canton                
           Club East, (AMT), 2.70%*, 8/2/01, (LOC: Keybank).....      3,500,000
 2,680,000 Michigan State Housing Development Authority, Rental                
           Housing Revenue, Series A, 5.25%, 10/1/01, (Insured                 
           by MBIA).............................................      2,683,749
   375,000 Michigan State Strategic Fund, Ajax Window, (AMT),                  
           2.85%*, 8/2/01,                                                     
           (LOC: Huntington Bank)...............................        375,000
 1,900,000 Michigan State Strategic Fund, Atmosphere Annealing,                
           (AMT), 2.90%*, 8/2/01,                                              
           (LOC: National City Bank)............................      1,900,000
 2,000,000 Michigan State Strategic Fund, Automatic Spring,                    
           (AMT), 2.93%*, 8/1/01,                                              
           (LOC: ABN/AMRO)......................................      2,000,000
 1,200,000 Michigan State Strategic Fund, B & C Leasing, (AMT),                
           2.80%*, 8/2/01,                                                     
           (LOC: Bank of America)...............................      1,200,000
 3,260,000 Michigan State Strategic Fund, Banks Hardwoods, Inc.,               
           (AMT), 3.00%*, 8/2/01, (LOC: Bank One)...............      3,260,000
   700,000 Michigan State Strategic Fund, Baron Drawn Steel,                   
           (AMT), 2.90%*, 8/2/01,                                              
           (LOC: National City Bank)............................        700,000
 2,395,000 Michigan State Strategic Fund, Biewer of Lansing,                   
           (AMT), 2.95%*, 8/2/01,                                              
           (LOC: ABN/AMRO)......................................      2,395,000

Continued 

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                        Michigan Municipal Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$3,000,000 Michigan State Strategic Fund, Biff, Inc., (AMT),                  
           2.93%*, 8/1/01,                                                    
           (LOC: National Australia Bank)......................   $  3,000,000
 3,500,000 Michigan State Strategic Fund, Brazing Concepts Co.,               
           (AMT), 3.00%*, 8/1/01, (LOC: Bank One)..............      3,500,000
   825,000 Michigan State Strategic Fund, C-1, (AMT), 3.13%*,                 
           8/1/01, (LOC: Comerica Bank)........................        825,000
 1,000,000 Michigan State Strategic Fund, C-Tec, Inc., (AMT),                 
           2.80%*, 8/1/01, (LOC: SunTrust Bank)................      1,000,000
 2,500,000 Michigan State Strategic Fund, Cincinnati Milacron,                
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: PNC Bank).....................................      2,500,000
 2,525,000 Michigan State Strategic Fund, Cyberplast, (AMT),                  
           2.85%*, 8/1/01,                                                    
           (LOC: Wells Fargo Bank).............................      2,525,000
   820,000 Michigan State Strategic Fund, Dickinson Press,                    
           Inc., (AMT), 2.85%*, 8/2/01,                                       
           (LOC: Huntington Bank)..............................        820,000
 2,000,000 Michigan State Strategic Fund, Dixie Cut Stone,                    
           (AMT), 2.93%*, 8/1/01,                                             
           (LOC: ABN/AMRO).....................................      2,000,000
 2,500,000 Michigan State Strategic Fund, Donnelly Corp.,                     
           (AMT), 2.75%*, 8/1/01,                                             
           (LOC: Dresdner Bank)................................      2,500,000
 2,500,000 Michigan State Strategic Fund, Donnelly Corp.,                     
           Series B, (AMT), 3.60%*, 10/1/01, (LOC: Dresdner                   
           Bank)...............................................      2,500,000
 1,300,000 Michigan State Strategic Fund, Dow Chemical Co.,                   
           2.80%*, 8/1/01......................................      1,300,000
 3,000,000 Michigan State Strategic Fund, Dow Chemical Co.,                   
           (AMT), 2.90%*, 8/1/01...............................      3,000,000
 3,800,000 Michigan State Strategic Fund, Dow Chemical Co.,                   
           (AMT), 2.90%*, 8/1/01...............................      3,800,000
 1,300,000 Michigan State Strategic Fund, Dow Chemical Co.,                   
           (AMT), 2.90%*, 8/1/01...............................      1,300,000
 2,700,000 Michigan State Strategic Fund, E & L Meat, (AMT),                  
           2.93%*, 8/1/01,                                                    
           (LOC: ABN/AMRO).....................................      2,700,000
   840,000 Michigan State Strategic Fund, Enviromental Powder                 
           Co., (AMT),                                                        
           2.85%*, 8/2/01,                                                    
           (LOC: ABN/AMRO).....................................        840,000
 1,000,000 Michigan State Strategic Fund, Equad, (AMT), 2.90%*,               
           8/2/01,                                                            
           (LOC: National City Bank)...........................      1,000,000
 1,375,000 Michigan State Strategic Fund, Fastco Industries,                  
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: U.S. Bancorp).................................      1,375,000
 2,000,000 Michigan State Strategic Fund, Fitz Land L.L.C.,                   
           (AMT), 2.90%*, 8/2/01,                                             
           (LOC: National City Bank)...........................      2,000,000
   955,000 Michigan State Strategic Fund, Frederick Wolfgang,                 
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: U.S. Bancorp).................................        955,000
 2,575,000 Michigan State Strategic Fund, Gollin Block & Supply               
           Co., (AMT), 2.93%*, 8/1/01, (LOC: Northern Trust                   
           Bank)...............................................      2,574,992

                                                                [Download Table]

Principal                                                                     
  Amount                    Security Description                     Value    
---------                   --------------------                     -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$1,510,000 Michigan State Strategic Fund, Hamilton Industrial                 
           Products, Inc., (AMT),                                             
           2.85%*, 8/2/01, (LOC: ABN/AMRO)......................  $  1,510,000
 1,000,000 Michigan State Strategic Fund, Harbor Industries                   
           Inc., (AMT), 2.93%*, 8/1/01, (LOC: ABN/AMRO).........     1,000,000
 1,145,000 Michigan State Strategic Fund, I.V.C. Industrial                   
           Coatings, Inc., (AMT),                                             
           3.00%*, 8/2/01, (LOC: Bank One)......................     1,145,000
 3,265,000 Michigan State Strategic Fund, Jedco, Inc., (AMT),                 
           2.85%*, 8/2/01, (LOC: Bank One)......................     3,265,000
   930,000 Michigan State Strategic Fund, John A. Biewer Co.,                 
           (AMT), 3.00%*, 9/1/01,                                             
           (LOC: ABN/AMRO)......................................       930,000
   560,000 Michigan State Strategic Fund, John Dekker & Sons,                 
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: ABN/AMRO)......................................       560,000
   250,000 Michigan State Strategic Fund, Kay Screen Printing,                
           (AMT), 3.05%*, 8/2/01,                                             
           (LOC: Comerica Bank).................................       250,000
   450,000 Michigan State Strategic Fund, Kazoo, Inc., (AMT),                 
           3.60%*, 9/15/01,                                                   
           (LOC: National City Bank)............................       450,000
 1,125,000 Michigan State Strategic Fund, Kerkstra, (AMT),                    
           2.85%*, 8/2/01,                                                    
           (LOC: Huntington Bank)...............................     1,125,000
 1,400,000 Michigan State Strategic Fund, Kumdinger, (AMT),                   
           2.80%*, 8/1/01,                                                    
           (LOC: Bank One)......................................     1,400,000
 1,140,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Banks Hardwoods Ltd., Series A, (AMT),                    
           2.85%*, 8/2/01,                                                    
           (LOC: Huntington Bank)...............................     1,140,000
   500,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Bowers Manufacturing Co. Project, (AMT),                  
           3.00%*, 8/1/01,                                                    
           (LOC: Bank One)......................................       500,000
 1,200,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Creative Foam Corp. Project, (AMT), 3.00%*,               
           8/1/01,                                                            
           (LOC: Bank One)......................................     1,200,000
 1,500,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Delta Containers, Inc. Project, (AMT),                    
           3.00%*, 8/1/01,                                                    
           (LOC: Bank One)......................................     1,500,000
 2,800,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Delta Containers, Inc., Project (AMT),                    
           3.00%*, 8/1/02, (LOC: Bank One)......................     2,800,000
   100,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Eclipse Mold (AMT), 3.00%*, 8/1/01, (LOC:                 
           Bank One)............................................       100,000
   100,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Horizon Development Project, (AMT), 3.00%*,               
           8/1/01,                                                            
           (LOC: Bank One)......................................       100,000
 5,000,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Kaspari Investments, L.L.C. Project, (AMT),               
           3.00%*, 8/1/01,                                                    
           (LOC: Bank One)......................................     5,000,000

Continued 

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                        Michigan Municipal Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$  940,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, LPB L.L.C. Project, (AMT), 3.00%*, 8/1/01,                
           (LOC: Bank One).....................................   $    940,000
 3,500,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, River City Plastics, Inc., (AMT), 3.00%*,                 
           8/2/01, (LOC: Bank One).............................      3,500,000
 3,010,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, RL Adams Plastics, Inc., (AMT), 2.80%*,                   
           8/1/01,                                                            
           (LOC: Comerica Bank)................................      3,010,000
 4,460,000 Michigan State Strategic Fund, Limited Obligation                  
           Revenue, Stegner East Investments, L.L.C., (AMT),                  
           2.80%*, 8/1/01, (LOC: Comerica Bank)................      4,460,000
 2,500,000 Michigan State Strategic Fund, MacArthur, (AMT),                   
           3.00%*, 8/2/01, (LOC: Bank One).....................      2,500,000
 2,100,000 Michigan State Strategic Fund, Maco Steel Inc.,                    
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: U.S. Bancorp).................................      2,100,000
 3,000,000 Michigan State Strategic Fund, Merrill Group, (AMT),               
           2.90%*, 8/2/01, (LOC: National City Bank)...........      3,000,000
 4,000,000 Michigan State Strategic Fund, Middleville Tool &                  
           Die Project, (AMT), 3.00%*, 8/1/01, (LOC: Bank                     
           One)................................................      4,000,000
   940,000 Michigan State Strategic Fund, Molmec, Inc., (AMT),                
           2.95%*, 8/2/01,                                                    
           (LOC: Comerica Bank)................................        940,000
   880,000 Michigan State Strategic Fund, Nicholas Plastics,                  
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: National City Bank)...........................        880,000
   770,000 Michigan State Strategic Fund, Northern Pure Ice                   
           Co., (AMT), 2.93%*, 8/1/01,                                        
           (LOC: ABN/AMRO).....................................        770,000
 1,460,000 Michigan State Strategic Fund, Omni Technical                      
           Services, Inc., (AMT),                                             
           2.90%*, 8/2/01, (LOC: National City Bank)...........      1,460,000
   910,000 Michigan State Strategic Fund, Patten Monument,                    
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: U.S. Bancorp).................................        910,000
 2,000,000 Michigan State Strategic Fund, Phipps Emmett                       
           Association, (AMT), 2.93%*, 8/1/01, (LOC:                          
           ABN/AMRO)...........................................      2,000,000
   350,000 Michigan State Strategic Fund, Plascore, Inc.,                     
           Series B-2, (AMT), 3.13%*, 8/1/01,                                 
           (LOC: Comerica Bank) ...............................        350,000
   840,000 Michigan State Strategic Fund, Plascore, Inc.,                     
           (AMT), 2.85%*, 8/2/01,                                             
           (LOC: Huntington Bank)..............................        840,000
 5,000,000 Michigan State Strategic Fund, Proto-Techniques,                   
           (AMT), 2.80%*, 8/2/01,                                             
           (LOC: Comerica Bank)................................      5,000,000
    80,000 Michigan State Strategic Fund, Sarbeth, (AMT),                     
           3.13%*, 8/1/01,                                                    
           (LOC: Comerica Bank)................................         80,000
 2,120,000 Michigan State Strategic Fund, SFI Acquistion,                     
           (AMT), 2.80%*, 8/1/01,                                             
           (LOC: ABN/AMRO).....................................      2,120,000

                                                                [Download Table]

Principal                                                                      
  Amount                    Security Description                      Value    
---------                   --------------------                      -----    
                                                                               

MUNICIPAL BONDS (continued)                                                    
           Michigan (continued)                                                
$1,700,000 Michigan State Strategic Fund, Sunrise Windows Ltd.,                
           (AMT), 2.95%*, 8/1/01, (LOC: Keybank)................   $  1,700,000
 1,000,000 Michigan State Strategic Fund, Thompson Family                      
           Holdings, (AMT), 2.90%*, 8/2/01, (LOC: National City                
           Bank)................................................      1,000,000
 1,450,000 Michigan State Strategic Fund, Trio Tool Co., (AMT),                
           2.93%*, 8/1/01,                                                     
           (LOC: ABN/AMRO)......................................      1,450,000
 1,350,000 Michigan State Strategic Fund, Ultra Tech Printing                  
           Co., (AMT), 2.85%*, 8/1/01, (LOC: U.S. Bancorp)......      1,350,000
   885,000 Michigan State Strategic Fund, Village at Fort                      
           Gratiot, 2.90%*, 8/2/01,                                            
           (LOC: Comercia Bank).................................        885,000
 1,000,000 Michigan State Strategic Fund, Waterland, (AMT),                    
           3.13%*, 8/1/01,                                                     
           (LOC: ABN/AMRO)......................................      1,000,000
 2,490,000 Michigan State Strategic Fund, Wayne Disposal, (AMT),               
           2.85%*, 8/1/01,                                                     
           (LOC: Credit Suisse).................................      2,490,000
 3,000,000 Michigan State Strategic Fund, Whitehall Industries,                
           Inc., (AMT), 3.00%*, 8/2/01, (LOC: Bank One).........      3,000,000
   835,000 Michigan State Strategic Fund, Wright K Technology,                 
           Inc., Series 1997, (AMT),                                           
           2.90%*, 8/2/01, (LOC: National City Bank)............        835,000
 5,910,000 Michigan State, GO, Recreational Program, 6.00%,                    
           11/1/01..............................................      5,934,397
 4,440,000 Michigan State, Hospital Finance Authority, Mount                   
           Clemens General Hospital, (AMT), 2.65%*, 8/1/01......      4,440,000
 7,700,000 Midland County Economic Development, Dow Chemical                   
           Co., Series A, (AMT), 2.90%*, 8/1/01.................      7,700,000
 1,000,000 Mount Clemens Community School District, GO, 6.60%,                 
           5/1/02, (Insured by MBIA),                                          
           Q-SBLF...............................................      1,048,470
 1,500,000 Oakland County Economic Development Corp., Limited                  
           Obligation Revenue, Moody Family Limited Project,                   
           (AMT),                                                              
           3.00%*, 8/1/01, (LOC: Bank One)......................      1,500,000
 2,500,000 Oakland County Economic Development Corp., Limited                  
           Obligation Revenue, Pratt & Miller Engineering,                     
           (AMT), 2.77%*, 8/2/01, (LOC: ABN/AMRO)...............      2,500,000
 2,900,000 Oakland County Economic Development Corp., North                    
           America, (AMT),                                                     
           2.80%*, 8/1/01, (LOC: Comerica Bank).................      2,900,000
 1,655,000 Oakland County Economic Development Corp., Orchard                  
           Maple Project,                                                      
           3.65%*, 11/15/01, (LOC: National City Bank)..........      1,655,000
 1,000,000 Oakland Washtenaw Counties Community College, 6.65%,                
           5/1/02...............................................      1,048,239
   750,000 Reeths-Puffer Schools, GO, 6.25%, 5/1/02, (Insured by               
           FGIC), Q-SBLF........................................        767,395
 1,000,000 Rochester Community School District, GO, Series I,                  
           4.80%, 5/1/02, Q-SBLF................................      1,012,648

Continued 

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                        Michigan Municipal Money Market Fund
                     SCHEDULE OF PORTFOLIO INVESTMENTS
(continued) 
 July 31, 2001

                                                                [Download Table]


Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

MUNICIPAL BONDS (continued)                                                   
           Michigan (continued)                                               
$  205,000 Rochester Hills Economic Development Corp., BRG                    
           Associates, 4.75%*, 12/1/01, (LOC: Comerica Bank)...   $    205,000
 1,440,000 Sault St. Marie Tribe Building Authority Revenue,                  
           Public Infrastructure, (AMT), 2.95%*, 12/1/01,                     
           (LOC: National City Bank)...........................      1,440,000
 1,640,000 South Lyon Community Schools, GO, Series A, 5.50%,                 
           5/1/02, Q-SBLF......................................      1,667,199
   920,000 St. Clair Shores Economic Development Corp.,                       
           Borman's, Inc., (AMT),                                             
           3.30%*, 10/15/01, (LOC: ABN/AMRO)...................        920,000
   570,000 Troy Michigan Downtown Development Authority, 4.00%,               
           11/1/01,                                                           
           (Insured by MBIA)...................................        571,933
 2,000,000 University of Michigan Hospital Revenue, Series A,                 
           2.80%*, 8/1/01......................................      2,000,000
 3,600,000 University of Michigan Hospital Revenue, Series A,                 
           2.80%*, 8/1/01......................................      3,600,000
 1,350,000 University of Michigan University Hospital Revenue,                
           Series A,                                                          
           2.80%*, 8/1/01......................................      1,350,000
 2,300,000 University of Michigan University Revenue, 2.80%*,                 
           8/1/01..............................................      2,300,000
 4,300,000 University of Michigan University Revenue, Series A,               
           2.80%*, 8/1/01......................................      4,300,000
 2,235,000 Walled Lake Consolidated School District, GO, 4.80%,               
           5/1/02, Q-SBLF......................................      2,259,325
 1,315,000 Warren Economic Development Corp., CMX Corp.                       
           Project, (AMT), 3.60%*, 9/15/01,                                   
           (LOC: National City Bank)...........................      1,315,000
 1,100,000 Warren Economic Development Corp., Cross Country                   
           Inn, (AMT), 4.00%*, 11/1/01,                                       
           (LOC: U.S. Bancorp).................................      1,100,000
                                                                  ------------
                                                                   250,707,176
                                                                  ------------
           Puerto Rico (2.8%):                                                
 4,695,000 Industrial Medical & Environmental Pollution                       
           Control, Facilities Financing Authority, Abbott                    
           Labs, 3.40%*, 3/1/02................................      4,695,000
 4,200,000 Industrial Medical & Environmental Pollution                       
           Control, Facilities Financing Authority, Merck Co.,                
           4.00%*, 12/1/01.....................................      4,200,000
                                                                  ------------
                                                                     8,895,000
                                                                  ------------
           Total Municipal Bonds...............................    259,602,176
                                                                  ------------
TAX FREE COMMERCIAL PAPER (12.4%):                                            
           Michigan (12.4%):                                                  
 1,000,000 Cornell Township Economic Development Corp.,                       
           Industrial Development Revenue, Mead Escanaba Paper                
           Co., 2.65%, 8/14/01, (LOC: Credit Suisse)...........      1,000,000
 3,300,000 Cornell Township Economic Development Corp.,                       
           Industrial Development Revenue, Mead Escanaba Paper                
           Co., 2.50%, 11/14/01, (LOC: Credit Suisse)..........      3,300,000

                                                                [Download Table]

Shares or                                                                     
Principal                                                                     
  Amount                   Security Description                      Value    
---------                  --------------------                      -----    
                                                                              

TAX FREE COMMERCIAL PAPER (continued)                                         
           Michigan (continued)                                               
$3,000,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series A, 2.60%, 8/14/01, (LOC: Morgan                  
           Guaranty Trust) ....................................   $  3,000,000
 4,300,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series A, 2.60%, 11/6/01, (LOC: Morgan                  
           Guaranty Trust) ....................................      4,300,000
 4,500,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series A, 2.65%, 11/8/01, (LOC: Morgan                  
           Guaranty Trust) ....................................      4,500,000
 3,495,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series B, 2.85%, 8/16/01, (LOC: Union                   
           Bank of Switzerland)................................      3,495,000
 6,810,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series B, 2.45%, 9/5/01, (LOC: Union Bank               
           of Switzerland).....................................      6,810,000
 3,995,000 Delta County Economic Development Corp.,                           
           Environmental Improvement Revenue, Mead Escanaba                   
           Paper Co., Series B, 2.55%, 10/24/01, (LOC: Union                  
           Bank of Switzerland)................................      3,995,000
 3,000,000 Michigan State Builders, 2.70%, 8/21/01, (LOC:                     
           CIBC)...............................................      3,000,000
 6,000,000 Michigan State Housing Development Authority, (AMT),               
           2.65%, 10/25/01,                                                   
           (LOC: Helaba Bank)..................................      6,000,000
                                                                  ------------
                                                                    39,400,000
                                                                  ------------
           Total Tax Free Commercial Paper.....................     39,400,000
                                                                  ------------
INVESTMENT COMPANIES (5.7%):                                                  
 2,338,594 Dreyfus Tax Exempt Money Market Fund................      2,338,594
15,652,104 Federated Tax Exempt Money Market Fund..............     15,652,104
                                                                  ------------
           Total Investment Companies..........................     17,990,698
                                                                  ------------
Total Investments (Cost $316,992,874) (a) -- 99.8%..............   316,992,874
Other assets in excess of liabilities -- 0.2%...................       764,905
                                                                  ------------
Net Assets -- 100.0%............................................  $317,757,779
                                                                  ============

-------                                                                         
(a)  Cost for federal income tax and financial reporting purposes is the same.  
*  Variable rate security. Rate presented represents rate in effect at July 31, 
2001. Maturity date reflects next rate change date.                       
AMBAC -- AMBAC Indemnity Corp.                                                  
AMT -- Alternative Minimum Tax Paper                                            
CIBC -- Canadian Imperial Bank Corp.                                            
FGIC -- Financial Guaranty Insurance Corp.                                      
GO -- General Obligation                                                        
LLC -- Limited Liability Corp.                                                  
LOC -- Letter of Credit                                                         
Q-SBLF -- Qualified School Board Lending Fund                                   

See Notes to Financial Statements.

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                        STATEMENTS OF ASSETS AND LIABILITIES
 July 31, 2001
[LOGO OF KENT FUNDS]                                                            

                                                        [Enlarge/Download Table]

                                  Growth and     Index      Large Company  Small Company  International
                                 Income Fund  Equity Fund    Growth Fund    Growth Fund    Growth Fund 
                                 -----------  -----------   -------------  -------------  -------------
                                                                                                       
ASSETS:                                                                                                
 Investments:                                                                                          
  Investments at cost........... $401,577,656 $535,883,692  $273,135,168   $555,891,265   $509,087,178 
  Net unrealized                                                                                       
   appreciation/(depreciation)..  184,598,831  320,407,859   (21,384,822)   186,632,195    (26,522,289)
                                 ------------ ------------  ------------   ------------   ------------ 
  Total investments at value....  586,176,487  856,291,551   251,750,346    742,523,460    482,564,889 
 Foreign currency at value (cost                                                                       
  $0; $0; $0; $0; $2,685,024                                                                           
  respectively).................           --           --            --             --      2,734,894 
 Collateral for securities                                                                             
  loaned........................   11,996,365   22,939,464            --     77,489,590     45,784,561 
 Interest and dividends                                                                                
  receivable....................      401,314      592,666       167,246        231,661        342,999 
 Receivable for capital shares                                                                         
  issued........................           --       46,590            --         22,210             -- 
 Receivable for investments                                                                            
  sold..........................           --           --     4,106,595      5,482,347          6,021 
 Net receivable for variation                                                                          
  margin on futures contracts...       26,600       35,380            --             --             -- 
 Tax reclaim receivable.........           --           --            --             --        566,587 
 Prepaid expenses and other                                                                            
  assets........................       16,478       18,287        29,741         17,193         15,685 
                                 ------------ ------------  ------------   ------------   ------------ 
  Total Assets..................  598,617,244  879,923,938   256,053,928    825,766,461    532,015,636 
                                 ------------ ------------  ------------   ------------   ------------ 
LIABILITIES:                                                                                           
 Payable for investments                                                                               
  purchased.....................           --           --            --      1,913,896             -- 
 Payable for securities loaned..   11,996,365   22,939,464            --     77,489,590     45,784,561 
 Payable for capital shares                                                                            
  redeemed......................        3,959       10,182            --             --             -- 
 Net payable for variation                                                                             
  margin on futures contracts...           --           --         8,480         65,810             -- 
 Payable to adviser.............      348,067      181,012       153,058        443,597        308,374 
 Payable to administrator.......       16,062       13,903         7,618         22,060         12,602 
 Payable to distributor                                                                                
  (Investment Shares)...........        8,252        7,167           131          4,509          2,758 
 Accrued expenses and other                                                                            
  payables......................       61,531       98,575        22,374         70,228        117,458 
                                 ------------ ------------  ------------   ------------   ------------ 
  Total Liabilities.............   12,434,236   23,250,303       191,661     80,009,690     46,225,753 
                                 ------------ ------------  ------------   ------------   ------------ 
NET ASSETS...................... $586,183,008 $856,673,635  $255,862,267   $745,756,771   $485,789,883 
                                 ============ ============  ============   ============   ============ 
NET ASSETS consist of:                                                                                 
 Paid-in capital................ $390,435,669 $550,137,733  $305,298,131   $537,209,431   $496,753,313 
 Undistributed (distributions in                                                                       
  excess of) net investment                                                                            
  income........................       63,166      506,337        35,039        (16,732)       389,280 
 Accumulated net realized                                                                              
  gains/(losses) on investments,                                                                       
  foreign currency and futures                                                                         
  contracts.....................   11,135,732  (14,357,449)  (28,077,601)    22,207,427     15,211,612 
 Net unrealized                                                                                        
  appreciation/(depreciation) of                                                                       
  investments, futures contracts                                                                       
  and translation of assets and                                                                        
  liabilities in foreign                                                                               
  currencies....................  184,548,441  320,387,014   (21,393,302)   186,356,645    (26,564,322)
                                 ------------ ------------  ------------   ------------   ------------ 
NET ASSETS...................... $586,183,008 $856,673,635  $255,862,267   $745,756,771   $485,789,883 
                                 ============ ============  ============   ============   ============ 
INSTITUTIONAL SHARES:                                                                                  
 Net Assets..................... $547,523,929 $822,908,595  $255,258,633   $724,275,374   $472,950,987 
 Shares Outstanding.............   36,098,816   35,605,851    28,681,478     40,556,292     36,638,553 
 Net Asset Value, offering and                                                                         
  redemption price per share.... $      15.17 $      23.11  $       8.90   $      17.86   $      12.91 
                                 ============ ============  ============   ============   ============ 
INVESTMENT SHARES:                                                                                     
 Net Assets..................... $ 38,659,079 $ 33,765,040  $    603,634   $ 21,481,397   $ 12,838,896 
 Shares Outstanding.............    2,573,706    1,461,543        67,866      1,213,100      1,010,667 
 Net Asset Value, offering and                                                                         
  redemption price per share.... $      15.02 $      23.10  $       8.89   $      17.71   $      12.70 
                                 ============ ============  ============   ============   ============ 

See Notes to Financial Statements.

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                        STATEMENTS OF ASSETS AND LIABILITIES
 July 31, 2001

                                                                [Download Table]

                                                    Intermediate   Short Term  
                                      Income Fund    Bond Fund     Bond Fund   
                                      -----------   ------------   ----------  
                                                                               
ASSETS:                                                                        
 Investments:                                                                  
  Investments at cost................ $302,652,298  $702,398,371  $229,962,161 
  Net unrealized appreciation........    9,115,604    15,704,327     3,724,128 
                                      ------------  ------------  ------------ 
  Total investments at value.........  311,767,902   718,102,698   233,686,289 
 Collateral for securities loaned....   16,680,249   116,707,452    15,768,145 
 Interest and dividends receivable...    3,414,902     9,799,523     3,228,498 
 Receivable for capital shares                                                 
  issued.............................           --        21,604            90 
 Prepaid expenses and other assets...       12,321        15,100        11,163 
                                      ------------  ------------  ------------ 
  Total Assets.......................  331,875,374   844,646,377   252,694,185 
                                      ------------  ------------  ------------ 
LIABILITIES:                                                                   
 Payable for investments purchased...   27,030,625    55,429,082            -- 
 Payable for securities loaned.......   16,680,249   116,707,452    15,768,145 
 Payable for capital shares                                                    
  redeemed...........................           --        73,443         8,421 
 Payable to adviser..................      145,282       311,435        98,799 
 Payable to administrator............        8,537        18,352         7,019 
 Payable to distributor (Investment                                            
  Shares)............................        1,300         1,787           425 
 Accrued expenses and other                                                    
  payables...........................       24,920        66,378        27,673 
                                      ------------  ------------  ------------ 
  Total Liabilities..................   43,890,913   172,607,929    15,910,482 
                                      ------------  ------------  ------------ 
NET ASSETS........................... $287,984,461  $672,038,448  $236,783,703 
                                      ============  ============  ============ 
NET ASSETS consist of:                                                         
 Paid-in capital..................... $286,127,119  $680,280,735  $240,725,674 
 Undistributed (distributions in                                               
  excess of) net investment income...   (1,767,335)   (5,274,072)        3,577 
 Accumulated net realized losses on                                            
  investments........................   (5,490,927)  (18,672,542)   (7,669,676)
 Net unrealized appreciation of                                                
  investments........................    9,115,604    15,704,327     3,724,128 
                                      ------------  ------------  ------------ 
NET ASSETS........................... $287,984,461  $672,038,448  $236,783,703 
                                      ============  ============  ============ 
INSTITUTIONAL SHARES:                                                          
 Net Assets.......................... $281,794,834  $663,570,941  $233,444,009 
 Shares Outstanding..................   28,267,761    67,011,378    23,749,867 
 Net Asset Value, offering and                                                 
  redemption price per share......... $       9.97  $       9.90  $       9.83 
                                      ============  ============  ============ 
INVESTMENT SHARES:                                                             
 Net Assets.......................... $  6,189,627  $  8,467,507  $  3,339,694 
 Shares Outstanding..................      621,861       852,912       340,102 
 Net Asset Value, offering and                                                 
  redemption price per share......... $       9.95  $       9.93  $       9.82 
                                      ============  ============  ============ 

See Notes to Financial Statements.

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                        STATEMENTS OF ASSETS AND LIABILITIES
 July 31, 2001
[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

                                                                    Michigan   
                                         Tax-Free    Intermediate   Municipal  
                                       Income Fund   Tax-Free Fund  Bond Fund  
                                       -----------   -------------  ---------  
                                                                               
ASSETS:                                                                        
 Investments:                                                                  
  Investments at cost................. $122,135,470  $236,848,570  $81,483,105 
  Net unrealized appreciation.........    7,503,195    12,740,532    2,648,834 
                                       ------------  ------------  ----------- 
  Total investments at value..........  129,638,665   249,589,102   84,131,939 
 Interest and dividends receivable....    1,527,837     2,924,326    1,036,115 
 Receivable for investments sold......    3,744,028       268,606           -- 
 Prepaid expenses and other assets....       11,954        10,448        5,445 
                                       ------------  ------------  ----------- 
  Total Assets........................  134,922,484   252,792,482   85,173,499 
                                       ------------  ------------  ----------- 
LIABILITIES:                                                                   
 Payable for investments purchased....    8,351,293     9,525,047    1,003,490 
 Payable to adviser...................       58,538       103,074       32,454 
 Payable to administrator.............        3,767         7,248        2,512 
 Payable to distributor (Investment                                            
  Shares).............................          235         1,126          461 
 Accrued expenses and other payables..       12,741        22,800        9,548 
                                       ------------  ------------  ----------- 
  Total Liabilities...................    8,426,574     9,659,295    1,048,465 
                                       ------------  ------------  ----------- 
NET ASSETS............................ $126,495,910  $243,133,187  $84,125,034 
                                       ============  ============  =========== 
NET ASSETS consist of:                                                         
 Paid-in capital...................... $116,721,696  $225,988,208  $81,186,655 
 Undistributed (distributions in                                               
  excess of) net investment income....       (2,804)      315,805       (1,520)
 Accumulated net realized gains on                                             
  investments.........................    2,273,823     4,088,642      291,065 
 Net unrealized appreciation of                                                
  investments.........................    7,503,195    12,740,532    2,648,834 
                                       ------------  ------------  ----------- 
NET ASSETS............................ $126,495,910  $243,133,187  $84,125,034 
                                       ============  ============  =========== 
INSTITUTIONAL SHARES:                                                          
 Net Assets........................... $125,381,536  $237,928,988  $80,555,727 
 Shares Outstanding...................   11,662,806    22,079,026    7,855,575 
 Net Asset Value, offering and                                                 
  redemption price per share.......... $      10.75  $      10.78  $     10.25 
                                       ============  ============  =========== 
INVESTMENT SHARES:                                                             
 Net Assets........................... $  1,114,374  $  5,204,199  $ 3,569,307 
 Shares Outstanding...................      103,376       482,768      348,510 
 Net Asset Value, offering and                                                 
  redemption price per share.......... $      10.78  $      10.78  $     10.24 
                                       ============  ============  =========== 

See Notes to Financial Statements.

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                        STATEMENTS OF ASSETS AND LIABILITIES
 July 31, 2001

                                                                [Download Table]

                                                                    Michigan   
                                                     Government    Municipal   
                                       Money Market Money Market  Money Market 
                                           Fund         Fund          Fund     
                                       ------------ ------------  ------------ 
                                                                               
ASSETS:                                                                        
 Investments:                                                                  
  Investments at cost................. $805,306,734 $385,509,794  $316,992,874 
  Repurchase agreements, at cost......           --   65,000,000            -- 
                                       ------------ ------------  ------------ 
  Total investments...................  805,306,734  450,509,794   316,992,874 
 Interest and dividends receivable....    4,930,640    2,123,899     1,498,414 
 Receivable for capital shares                                                 
  issued..............................      161,936           --            -- 
 Prepaid expenses and other assets....       14,656       13,027         8,461 
                                       ------------ ------------  ------------ 
  Total Assets........................  810,413,966  452,646,720   318,499,749 
                                       ------------ ------------  ------------ 
LIABILITIES:                                                                   
 Cash overdraft.......................           --        3,641            -- 
 Dividends payable....................    2,447,627    1,367,976       606,953 
 Payable for investments purchased....   11,298,491    5,108,564            -- 
 Payable for capital shares redeemed..      249,085           --            -- 
 Payable to adviser...................      272,334       94,662       104,370 
 Payable to administrator.............       15,034        6,255         5,936 
 Payable to distributor (Investment                                            
  Shares).............................        4,317        7,412            43 
 Accrued expenses and other payables..       83,269       41,980        24,668 
                                       ------------ ------------  ------------ 
  Total Liabilities...................   14,370,157    6,630,490       741,970 
                                       ------------ ------------  ------------ 
NET ASSETS............................ $796,043,809 $446,016,230  $317,757,779 
                                       ============ ============  ============ 
NET ASSETS consist of:                                                         
 Paid-in capital...................... $795,988,284 $446,014,530  $317,776,957 
 Undistributed net investment income..       13,073        2,214           782 
 Accumulated net realized                                                      
  gains/(losses) on investments.......       42,452         (514)      (19,960)
                                       ------------ ------------  ------------ 
NET ASSETS............................ $796,043,809 $446,016,230  $317,757,779 
                                       ============ ============  ============ 
INSTITUTIONAL SHARES:                                                          
 Net Assets........................... $777,247,740 $410,278,263  $317,543,223 
 Shares Outstanding...................  777,202,590  410,278,763   317,540,098 
 Net Asset Value, offering and                                                 
  redemption price per share.......... $       1.00 $       1.00  $       1.00 
                                       ============ ============  ============ 
INVESTMENT SHARES:                                                             
 Net Assets........................... $ 18,796,069 $ 35,737,967  $    214,556 
 Shares Outstanding...................   18,794,963   35,737,977       214,541 
 Net Asset Value, offering and                                                 
  redemption price per share.......... $       1.00 $       1.00  $       1.00 
                                       ============ ============  ============ 

See Notes to Financial Statements.

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[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

                                    Growth and                     Index            
                                   Income Fund                  Equity Fund         
                            ---------------------------  -------------------------- 
                            Period ended   Year ended    Period ended   Year ended  
                              July 31,    December 31,     July 31,    December 31, 
                              2001 (a)        2000         2001 (a)        2000     
                            ------------  ------------   ------------  ------------ 
                                                                                    
INVESTMENT INCOME:                                                                  
 Dividends................  $  4,846,893  $   9,844,398  $  6,405,112  $ 11,181,362 
 Net income from                                                                    
  securities lending......        37,618         33,252        47,922        49,953 
 Less: Foreign taxes                                                                
  withheld................       (56,681)       (37,454)      (56,912)      (47,115)
                            ------------  -------------  ------------  ------------ 
  Total Investment                                                                  
   Income.................     4,827,830      9,840,196     6,396,122    11,184,200 
                            ------------  -------------  ------------  ------------ 
EXPENSES:                                                                           
 Investment advisory                                                                
  fees....................     2,539,738      5,448,225     1,523,417     2,787,063 
 Administration fees......       655,654      1,402,465       917,842     1,673,114 
 Distribution fees                                                                  
  (Investment Shares).....        61,867        136,185        51,637       110,534 
 Fund accounting fees.....        61,051        126,589        86,756       157,396 
 Other expenses...........       148,210        174,789       166,604       285,116 
                            ------------  -------------  ------------  ------------ 
  Total expenses before                                                             
   waivers................     3,466,520      7,288,253     2,746,256     5,013,223 
  Less: Fees waived                                                                 
    Investment advisory                                                             
     fees.................            --             --      (253,909)     (464,505)
    Administration fees...        (4,765)            --      (339,647)     (575,314)
    Fund accounting                                                                 
     fees.................            --        (41,839)      (76,178)     (139,341)
    Transfer agent fees...       (10,922)          (654)           --            -- 
                            ------------  -------------  ------------  ------------ 
  Net Expenses............     3,450,833      7,245,760     2,076,522     3,834,063 
                            ------------  -------------  ------------  ------------ 
NET INVESTMENT INCOME.....     1,376,997      2,594,436     4,319,600     7,350,137 
                            ------------  -------------  ------------  ------------ 
NET REALIZED AND                                                                    
 UNREALIZED GAINS/(LOSSES)                                                          
 ON INVESTMENTS:                                                                    
 Net realized                                                                       
  gains/(losses) on                                                                 
  investment                                                                        
  transactions............    11,315,273     38,593,852    (7,719,811)      239,878 
 Net realized                                                                       
  gains/(losses) on                                                                 
  futures contracts.......        11,790       (363,488)   (2,308,663)     (428,073)
 Net change in unrealized                                                           
  appreciation/depreciation                                                         
  of investments and                                                                
  futures contracts.......   (65,339,637)  (125,492,987)  (64,726,461)  (94,723,033)
                            ------------  -------------  ------------  ------------ 
NET REALIZED AND                                                                    
 UNREALIZED LOSSES ON                                                               
 INVESTMENTS..............   (54,012,574)   (87,262,623)  (74,754,935)  (94,911,228)
                            ------------  -------------  ------------  ------------ 
DECREASE IN NET ASSETS                                                              
 RESULTING FROM                                                                     
 OPERATIONS...............  $(52,635,577) $ (84,668,187) $(70,435,335) $(87,561,091)
                            ============  =============  ============  ============ 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS

                                                                [Download Table]

                                  Large Company               Small Company       
                                   Growth Fund                 Growth Fund        
                            --------------------------  --------------------------
                            Period ended   Year ended   Period ended   Year ended 
                              July 31,    December 31,    July 31,    December 31,
                              2001 (a)        2000        2001 (a)        2000    
                            ------------  ------------  ------------  ------------
                                                                                  
INVESTMENT INCOME:                                                                
 Dividends................  $  1,874,158  $  3,043,801  $  3,222,476  $ 6,197,076 
 Interest.................            --            --        66,792      105,158 
 Net income from                                                                  
  securities lending......            --            --       183,453      318,072 
 Less: Foreign taxes                                                              
  withheld................        (6,683)      (11,391)       (3,535)      (3,570)
                            ------------  ------------  ------------  ----------- 
  Total Investment                                                                
   Income.................     1,867,475     3,032,410     3,469,186    6,616,736 
                            ------------  ------------  ------------  ----------- 
EXPENSES:                                                                         
 Investment advisory                                                              
  fees....................     1,095,189     1,691,698     3,146,603    5,732,035 
 Administration fees......       282,830       435,341       812,067    1,473,862 
 Distribution fees                                                                
  (Investment Shares).....           894         1,215        32,884       68,581 
 Fund accounting fees.....        28,984        43,369        75,232      138,864 
 Other expenses...........        67,279       103,809       156,203      183,808 
                            ------------  ------------  ------------  ----------- 
  Total expenses before                                                           
   waivers................     1,475,176     2,275,432     4,222,989    7,597,150 
  Less: Fees waived                                                               
    Fund accounting                                                               
     fees.................            --       (11,575)           --      (41,613)
    Transfer agent fees...       (10,709)       (6,327)       (7,208)          -- 
                            ------------  ------------  ------------  ----------- 
  Net Expenses............     1,464,467     2,257,530     4,215,781    7,555,537 
                            ------------  ------------  ------------  ----------- 
NET INVESTMENT                                                                    
 INCOME/(LOSS)............       403,008       774,880      (746,595)    (938,801)
                            ------------  ------------  ------------  ----------- 
NET REALIZED AND                                                                  
 UNREALIZED GAINS/(LOSSES)                                                        
 ON INVESTMENTS:                                                                  
 Net realized                                                                     
  gains/(losses) on                                                               
  investment                                                                      
  transactions............   (20,929,947)   (4,378,354)   22,050,749   11,595,675 
 Net realized                                                                     
  gains/(losses) on                                                               
  futures contracts.......      (827,720)   (1,642,873)    1,075,675     (989,500)
 Net change in unrealized                                                         
  appreciation/depreciation                                                       
  of investments and                                                              
  futures contracts.......    (7,582,126)  (37,528,239)  (65,899,278)  (5,904,445)
                            ------------  ------------  ------------  ----------- 
NET REALIZED AND                                                                  
 UNREALIZED GAINS/(LOSSES)                                                        
 ON INVESTMENTS...........   (29,339,793)  (43,549,466)  (42,772,854)   4,701,730 
                            ------------  ------------  ------------  ----------- 
INCREASE/(DECREASE) IN NET                                                        
 ASSETS RESULTING FROM                                                            
 OPERATIONS...............  $(28,936,785) $(42,774,586) $(43,519,449) $ 3,762,929 
                            ============  ============  ============  =========== 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS
[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

                                   International                                    
                                    Growth Fund                  Income Fund        
                            ----------------------------  --------------------------
                            Period ended    Year ended    Period ended   Year ended 
                              July 31,     December 31,     July 31,    December 31,
                              2001 (a)         2000         2001 (a)        2000    
                            ------------   ------------   ------------  ------------
                                                                                    
INVESTMENT INCOME:                                                                  
 Dividends................  $   7,308,176  $   9,501,395  $   385,115   $   929,573 
 Interest.................             --         12,975    9,173,047    21,884,304 
 Net income from                                                                    
  securities lending......        578,329        255,839       60,818        99,315 
 Less: Foreign taxes                                                                
  withheld................       (837,757)    (1,034,768)          --            -- 
                            -------------  -------------  -----------   ----------- 
  Total Investment                                                                  
   Income.................      7,048,748      8,735,441    9,618,980    22,913,192 
                            -------------  -------------  -----------   ----------- 
EXPENSES:                                                                           
 Investment advisory                                                                
  fees....................      2,297,702      4,447,866    1,012,789     1,876,243 
 Administration fees......        552,396      1,067,214      304,519       563,317 
 Distribution fees                                                                  
  (Investment Shares).....         19,691         40,318        9,141        24,060 
 Fund accounting fees.....         59,048        109,164       30,229        56,500 
 Other expenses...........        232,491        345,010       68,865        82,949 
                            -------------  -------------  -----------   ----------- 
  Total expenses before                                                             
   waivers................      3,161,328      6,009,572    1,425,543     2,603,069 
  Less: Fees waived                                                                 
    Administration fees...         (6,990)            --           --            -- 
    Fund accounting                                                                 
     fees.................             --        (30,459)          --       (15,980)
    Transfer agent fees...         (5,786)            --      (13,776)      (10,435)
                            -------------  -------------  -----------   ----------- 
  Net Expenses............      3,148,552      5,979,113    1,411,767     2,576,654 
                            -------------  -------------  -----------   ----------- 
NET INVESTMENT INCOME.....      3,900,196      2,756,328    8,207,213    20,336,538 
                            -------------  -------------  -----------   ----------- 
NET REALIZED AND                                                                    
 UNREALIZED GAINS/(LOSSES)                                                          
 ON INVESTMENTS:                                                                    
 Net realized                                                                       
  gains/(losses) on                                                                 
  investments and foreign                                                           
  currency transactions...     16,507,189      4,408,276    5,465,211    (4,168,437)
 Net realized losses on                                                             
  futures contracts.......             --       (394,725)          --            -- 
 Net change in unrealized                                                           
  appreciation/depreciation                                                         
  of investments, futures                                                           
  contracts and                                                                     
  translation of assets                                                             
  and liabilities in                                                                
  foreign currencies......   (119,505,890)  (116,377,503)   3,986,424    18,889,406 
                            -------------  -------------  -----------   ----------- 
NET REALIZED AND                                                                    
 UNREALIZED GAINS/(LOSSES)                                                          
 ON INVESTMENTS...........   (102,998,701)  (112,363,952)   9,451,635    14,720,969 
                            -------------  -------------  -----------   ----------- 
INCREASE/(DECREASE) IN NET                                                          
 ASSETS RESULTING FROM                                                              
 OPERATIONS...............  $ (99,098,505) $(109,607,624) $17,658,848   $35,057,507 
                            =============  =============  ===========   =========== 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS

                                                                [Download Table]

                                   Intermediate                 Short Term         
                                     Bond Fund                   Bond Fund         
                             --------------------------  --------------------------
                             Period ended   Year ended   Period ended   Year ended 
                               July 31,    December 31,    July 31,    December 31,
                               2001 (a)        2000        2001 (a)        2000    
                             ------------  ------------  ------------  ------------
                                                                                   
INVESTMENT INCOME:                                                                 
 Dividends.................  $   839,331   $  1,609,789  $   368,236   $   350,453 
 Interest..................   20,335,551     54,593,018    5,988,692    10,645,434 
 Net income from securities                                                        
  lending..................      204,649        347,224       12,612        28,968 
                             -----------   ------------  -----------   ----------- 
  Total Investment Income..   21,379,531     56,550,031    6,369,540    11,024,855 
                             -----------   ------------  -----------   ----------- 
EXPENSES:                                                                          
 Investment advisory fees..    2,219,669      4,416,302      609,053       815,729 
 Administration fees.......      728,162      1,446,306      219,683       293,926 
 Distribution fees                                                                 
  (Investment Shares)......       12,517         27,626        5,142         9,845 
 Fund accounting fees......       65,304        130,971       21,704        29,106 
 Other expenses............      126,851        143,507       60,664        66,159 
                             -----------   ------------  -----------   ----------- 
  Total expenses before                                                            
   waivers.................    3,152,503      6,164,712      916,246     1,214,765 
  Less: Fees waived                                                                
    Administration fees....       (5,948)            --           --            -- 
    Fund accounting fees...           --        (42,528)          --        (8,209)
    Distribution fees                                                              
     (Investment Shares)...           --             --       (2,057)       (3,938)
    Transfer agent fees....       (2,521)            --       (7,672)       (8,868)
                             -----------   ------------  -----------   ----------- 
  Net Expenses.............    3,144,034      6,122,184      906,517     1,193,750 
                             -----------   ------------  -----------   ----------- 
NET INVESTMENT INCOME......   18,235,497     50,427,847    5,463,023     9,831,105 
                             -----------   ------------  -----------   ----------- 
NET REALIZED AND UNREALIZED                                                        
 GAINS/(LOSSES) ON                                                                 
 INVESTMENTS:                                                                      
 Net realized                                                                      
  gains/(losses) on                                                                
  investments..............   10,523,223    (10,280,492)   2,044,298    (1,112,315)
 Net change in unrealized                                                          
  appreciation/depreciation                                                        
  of investments...........   12,959,834     31,271,146    2,990,128     4,114,746 
                             -----------   ------------  -----------   ----------- 
NET REALIZED AND UNREALIZED                                                        
 GAINS ON INVESTMENTS......   23,483,057     20,990,654    5,034,426     3,002,431 
                             -----------   ------------  -----------   ----------- 
INCREASE IN NET ASSETS                                                             
 RESULTING FROM                                                                    
 OPERATIONS................  $41,718,554   $ 71,418,501  $10,497,449   $12,833,536 
                             ===========   ============  ===========   =========== 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS
[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

                                                          Intermediate Tax-Free   
                               Tax-Free Income Fund               Fund            
                             -------------------------  --------------------------
                             Period ended  Year ended   Period ended   Year ended 
                               July 31,   December 31,    July 31,    December 31,
                               2001 (a)       2000        2001 (a)        2000    
                             ------------ ------------  ------------  ------------
                                                                                  
INVESTMENT INCOME:                                                                
 Dividends..................  $  119,883  $   102,977   $   212,275   $   137,505 
 Interest...................   3,625,778    7,168,121     7,092,647    14,511,413 
                              ----------  -----------   -----------   ----------- 
  Total Investment Income...   3,745,661    7,271,098     7,304,922    14,648,918 
                              ----------  -----------   -----------   ----------- 
EXPENSES:                                                                         
 Investment advisory fees...     411,494      741,919       727,561     1,422,796 
 Administration fees........     134,979      242,997       262,541       512,640 
 Distribution fees                                                                
  (Investment Shares).......       1,777        3,932         5,734         7,202 
 Fund accounting fees.......      16,655       29,813        29,708        57,860 
 Other expenses.............      40,384       57,217        61,751        88,020 
                              ----------  -----------   -----------   ----------- 
  Total expenses before                                                           
   waivers..................     605,289    1,075,878     1,087,295     2,088,518 
  Less: Fees waived                                                               
    Fund accounting fees....          --       (6,754)           --       (15,045)
    Transfer agent fees.....      (9,770)     (10,716)       (9,866)      (12,271)
                              ----------  -----------   -----------   ----------- 
  Net Expenses..............     595,519    1,058,408     1,077,429     2,061,202 
                              ----------  -----------   -----------   ----------- 
NET INVESTMENT INCOME.......   3,150,142    6,212,690     6,227,493    12,587,716 
                              ----------  -----------   -----------   ----------- 
NET REALIZED AND UNREALIZED                                                       
 GAINS/(LOSSES) ON                                                                
 INVESTMENTS:                                                                     
 Net realized gains on                                                            
  investments...............   2,263,303    1,706,113     4,088,408     2,030,431 
 Net change in unrealized                                                         
  appreciation/depreciation                                                       
  of investments............    (737,678)   8,166,323      (293,707)    9,034,600 
                              ----------  -----------   -----------   ----------- 
NET REALIZED AND UNREALIZED                                                       
 GAINS ON INVESTMENTS.......   1,525,625    9,872,436     3,794,701    11,065,031 
                              ----------  -----------   -----------   ----------- 
INCREASE IN NET ASSETS                                                            
 RESULTING FROM OPERATIONS..  $4,675,767  $16,085,126   $10,022,194   $23,652,747 
                              ==========  ===========   ===========   =========== 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS

                                                                [Download Table]

                                Michigan Municipal                               
                                     Bond Fund             Money Market Fund     
                             ------------------------- --------------------------
                             Period ended  Year ended  Period ended   Year ended 
                               July 31,   December 31,   July 31,    December 31,
                               2001 (a)       2000       2001 (a)        2000    
                             ------------ ------------ ------------  ------------
                                                                                 
INVESTMENT INCOME:                                                               
 Dividends..................  $   64,816   $   61,964  $ 1,891,003   $ 3,144,939 
 Interest...................   2,374,348    4,681,371   22,404,828    40,494,345 
                              ----------   ----------  -----------   ----------- 
  Total Investment Income...   2,439,164    4,743,335   24,295,831    43,639,284 
                              ----------   ----------  -----------   ----------- 
EXPENSES:                                                                        
 Investment advisory fees...     233,906      440,639    1,887,544     2,718,142 
 Administration fees........      93,773      176,422      851,277     1,222,825 
 Distribution fees                                                               
  (Investment Shares).......       5,133        9,339       23,793           853 
 Fund accounting fees.......      13,441       23,967       73,347       107,963 
 Other expenses.............      29,826       41,896      140,385       154,485 
                              ----------   ----------  -----------   ----------- 
  Total expenses before                                                          
   waivers..................     376,079      692,263    2,976,346     4,204,268 
  Less: Fees waived                                                              
    Administration fees.....          --           --     (306,716)     (459,013)
    Fund accounting fees....          --       (5,150)     (70,790)     (101,921)
    Distribution fees                                                            
     (Investment Shares)....      (2,053)      (3,736)          --            -- 
    Transfer agent fees.....     (10,885)     (11,052)          --            -- 
                              ----------   ----------  -----------   ----------- 
  Net Expenses..............     363,141      672,325    2,598,840     3,643,334 
                              ----------   ----------  -----------   ----------- 
NET INVESTMENT INCOME.......   2,076,023    4,071,010   21,696,991    39,995,950 
                              ----------   ----------  -----------   ----------- 
NET REALIZED AND UNREALIZED                                                      
 GAINS ON INVESTMENTS:                                                           
 Net realized gains on                                                           
  investments...............     283,425      302,823       47,233            21 
 Net change in unrealized                                                        
  appreciation/depreciation                                                      
  of investments............   1,220,208    1,410,534           --            -- 
                              ----------   ----------  -----------   ----------- 
NET REALIZED AND UNREALIZED                                                      
 GAINS ON INVESTMENTS.......   1,503,633    1,713,357       47,233            21 
                              ----------   ----------  -----------   ----------- 
INCREASE IN NET ASSETS                                                           
 RESULTING FROM OPERATIONS..  $3,579,656   $5,784,367  $21,744,224   $39,995,971 
                              ==========   ==========  ===========   =========== 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

See Notes to Financial Statements.

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            STATEMENTS OF OPERATIONS
[LOGO OF KENT FUNDS]                                                            

                                                                [Download Table]

                               Government Money        Michigan Municipal Money 
                                  Market Fund                 Market Fund       
                           --------------------------  -------------------------
                           Period ended   Year ended   Period ended  Year ended 
                             July 31,    December 31,    July 31,   December 31,
                             2001 (a)        2000        2001 (a)       2000    
                           ------------  ------------  ------------ ------------
                                                                                
INVESTMENT INCOME:                                                              
 Dividends................ $   801,764   $   737,691    $  228,369  $   156,749 
 Interest.................  11,241,958    16,800,221     5,907,777   11,724,770 
                           -----------   -----------    ----------  ----------- 
  Total Investment                                                              
   Income.................  12,043,722    17,537,912     6,136,146   11,881,519 
                           -----------   -----------    ----------  ----------- 
EXPENSES:                                                                       
 Investment advisory                                                            
  fees....................     974,755     1,111,138       707,739    1,133,525 
 Administration fees......     439,372       500,069       319,159      509,668 
 Distribution fees                                                              
  (Investment Shares).....      39,197           337           253           56 
 Fund accounting fees.....      39,470        43,578        29,810       46,381 
 Other expenses...........      86,072        96,505        56,322       56,038 
                           -----------   -----------    ----------  ----------- 
  Total expenses before                                                         
   waivers................   1,578,866     1,751,627     1,113,283    1,745,668 
  Less: Fees waived                                                             
    Investment advisory                                                         
     fees.................    (365,534)     (439,056)           --           -- 
    Administration fees...    (166,284)     (172,800)     (114,991)    (206,157)
    Fund accounting fees..     (36,557)      (41,664)      (26,543)     (42,503)
    Transfer agent fees...      (8,143)      (10,369)      (12,483)      (6,729)
                           -----------   -----------    ----------  ----------- 
  Net Expenses............   1,002,348     1,087,738       959,266    1,490,279 
                           -----------   -----------    ----------  ----------- 
NET INVESTMENT INCOME.....  11,041,374    16,450,174     5,176,880   10,391,240 
                           -----------   -----------    ----------  ----------- 
NET REALIZED                                                                    
 GAINS/(LOSSES) ON                                                              
 INVESTMENTS..............         252            --        (9,365)           1 
                           -----------   -----------    ----------  ----------- 
INCREASE IN NET ASSETS                                                          
 RESULTING FROM                                                                 
 OPERATIONS............... $11,041,626   $16,450,174    $5,167,515  $10,391,241 
                           ===========   ===========    ==========  =========== 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

See Notes to Financial Statements.

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                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                               Growth and Income Fund                       Index Equity Fund              
                                      ------------------------------------------  ---------------------------------------- 
                                      Period ended   Year ended     Year ended    Period ended   Year ended    Year ended  
                                        July 31,    December 31,   December 31,     July 31,    December 31,  December 31, 
                                        2001 (a)        2000           1999         2001 (a)        2000          1999     
                                      ------------  ------------   ------------   ------------  ------------  ------------ 
                                                                                                                           
NET ASSETS at beginning of period...  $672,706,942  $ 880,750,624  $ 878,285,832  $899,577,210  $923,615,656  $809,351,352 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Increase/(decrease) in net assets                                                                                          
 resulting from operations:                                                                                                
Net investment income...............     1,376,997      2,594,436      5,636,572     4,319,600     7,350,137     7,820,895 
Net realized gains/(losses) on                                                                                             
 investment transactions............    11,315,273     38,593,852     62,171,224    (7,719,811)      239,878    25,507,087 
Net realized gains/(losses) on                                                                                             
 futures contracts..................        11,790       (363,488)    (3,007,540)   (2,308,663)     (428,073)     (329,602)
Net change in unrealized                                                                                                   
 appreciation/depreciation of                                                                                              
 investments and futures contracts..   (65,339,637)  (125,492,987)    83,278,426   (64,726,461)  (94,723,033)  128,549,533 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Increase/(decrease) in net assets                                                                                          
 resulting from operations..........   (52,635,577)   (84,668,187)   148,078,682   (70,435,335)  (87,561,091)  161,547,913 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Dividends and distributions to                                                                                             
 shareholders from:                                                                                                        
Institutional:                                                                                                             
Net investment income...............    (1,235,679)    (2,548,111)    (5,416,138)   (3,712,429)   (7,076,457)   (7,530,646)
In excess of net investment income..            --         (6,222)            --            --            --            -- 
Net realized gains on investments...    (8,982,797)   (51,163,346)   (33,829,516)           --    (5,820,368)  (18,771,791)
In excess of net realized gains on                                                                                         
 investments........................            --             --             --            --    (4,114,283)           -- 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Total dividends and distributions --                                                                                       
 Institutional Shares...............   (10,218,476)   (53,717,679)   (39,245,654)   (3,712,429)  (17,011,108)  (26,302,437)
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Investment:                                                                                                                
Net investment income...............       (71,790)       (57,175)      (205,647)     (141,904)     (239,760)     (287,641)
In excess of net investment income..            --           (140)            --            --            --            -- 
Net realized gains on investments...      (651,915)    (3,833,904)    (2,250,860)           --      (296,364)     (999,490)
In excess of net realized gains on                                                                                         
 investments........................            --             --             --            --      (209,492)           -- 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Total dividends and distributions --                                                                                       
 Investment Shares..................      (723,705)    (3,891,219)    (2,456,507)     (141,904)     (745,616)   (1,287,131)
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Total dividends and distributions to                                                                                       
 shareholders.......................   (10,942,181)   (57,608,898)   (41,702,161)   (3,854,333)  (17,756,724)  (27,589,568)
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Increase/(decrease) from capital                                                                                           
 transactions.......................   (22,946,176)   (65,766,597)  (103,911,729)   31,386,093    81,279,369   (19,694,041)
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
Increase/(decrease) in net assets...   (86,523,934)  (208,043,682)     2,464,792   (42,903,575)  (24,038,446)  114,264,304 
                                      ------------  -------------  -------------  ------------  ------------  ------------ 
NET ASSETS at end of period.........  $586,183,008  $ 672,706,942  $ 880,750,624  $856,673,635  $899,577,210  $923,615,656 
                                      ============  =============  =============  ============  ============  ============ 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

See Notes to Financial Statements.

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[LOGO OF KENT FUNDS]                                                            

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                                            Large Company Growth Fund                  Small Company Growth Fund          
                                      ----------------------------------------  ----------------------------------------- 
                                      Period ended   Year ended   Period ended  Period ended   Year ended    Year ended   
                                        July 31,    December 31,  December 31,    July 31,    December 31,  December 31,  
                                        2001 (a)        2000        1999 (b)      2001 (a)        2000          1999      
                                      ------------  ------------  ------------  ------------  ------------  ------------  
                                                                                                                          
NET ASSETS at beginning of period.... $274,587,407  $183,511,880  $         --  $829,989,513  $772,709,655  $ 783,790,477 
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
Increase/(decrease) in net assets                                                                                         
 resulting from operations:                                                                                               
 Net investment income/(loss)........      403,008       774,880       120,200      (746,595)     (938,801)       937,964 
 Net realized gains/(losses) on                                                                                           
  investment transactions............  (20,929,947)   (4,378,354)      (10,214)   22,050,749    11,595,675     (3,554,306)
 Net realized gains/(losses) on                                                                                           
  futures contracts..................     (827,720)   (1,642,873)      323,696     1,075,675      (989,500)     2,801,428 
 Net change in unrealized                                                                                                 
  appreciation/depreciation of                                                                                            
  investments and futures contracts..   (7,582,126)  (37,528,239)   23,613,404   (65,899,278)   (5,904,445)   169,748,364 
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
 Increase/(decrease) in net assets                                                                                        
  resulting from operations..........  (28,936,785)  (42,774,586)   24,047,086   (43,519,449)    3,762,929    169,933,450 
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
Dividends and distributions to                                                                                            
 shareholders from:                                                                                                       
Institutional:                                                                                                            
 Net investment income...............     (381,723)     (761,144)     (133,404)           --          (816)      (937,948)
 In excess of net investment income..           --            --            --            --       (11,911)            -- 
 Net realized gains on investments...           --      (144,863)     (154,978)   (2,540,857)   (7,709,880)   (14,995,703)
 In excess of net realized gains on                                                                                       
  investments........................           --      (297,114)           --            --            --       (596,642)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
  Total dividends and                                                                                                     
   distributions --Institutional                                                                                          
   Shares............................     (381,723)   (1,203,121)     (288,382)   (2,540,857)   (7,722,607)   (16,530,293)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
Investment:                                                                                                               
 Net investment income...............         (625)         (406)          (62)           --            --             -- 
 Net realized gains on investments...           --          (265)         (110)      (75,025)     (268,626)      (467,806)
 In excess of net realized gains on                                                                                       
  investments........................           --          (544)           --            --            --        (18,613)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
  Total dividends and                                                                                                     
   distributions -- Investment                                                                                            
   Shares............................         (625)       (1,215)         (172)      (75,025)     (268,626)      (486,419)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
  Total dividends and distributions                                                                                       
   to shareholders...................     (382,348)   (1,204,336)     (288,554)   (2,615,882)   (7,991,233)   (17,016,712)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
Increase/(decrease) from capital                                                                                          
 transactions........................   10,593,993   135,054,449   159,753,348   (38,097,411)   61,508,162   (163,997,560)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
 Increase/(decrease) in net assets...  (18,725,140)   91,075,527   183,511,880   (84,232,742)   57,279,858    (11,080,822)
                                      ------------  ------------  ------------  ------------  ------------  ------------- 
NET ASSETS at end of period.......... $255,862,267  $274,587,407  $183,511,880  $745,756,771  $829,989,513  $ 772,709,655 
                                      ============  ============  ============  ============  ============  ============= 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 
(b)  For the period from October 19, 1999 (commencement of operations) to       
December 31, 1999.                                                    

See Notes to Financial Statements.

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                                   International Growth Fund                         Income Fund                 
                            ------------------------------------------  ---------------------------------------- 
                            Period ended    Year ended     Year ended   Period ended   Year ended    Year ended  
                              July 31,     December 31,   December 31,    July 31,    December 31,  December 31, 
                              2001 (a)         2000           1999        2001 (a)        2000          1999     
                            ------------   ------------   ------------  ------------  ------------  ------------ 
                                                                                                                 
NET ASSETS at beginning of                                                                                       
 period...................  $ 602,268,722  $ 594,847,537  $540,889,186  $301,755,503  $305,630,512  $241,646,346 
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in net                                                                                       
 assets resulting from                                                                                           
 operations:                                                                                                     
Net investment income.....      3,900,196      2,756,328     3,840,882     8,207,213    20,336,538    17,406,682 
Net realized                                                                                                     
 gains/(losses) on                                                                                               
 investments and foreign                                                                                         
 currency transactions....     16,507,189      4,408,276    10,022,188     5,465,211    (4,168,437)   (6,701,014)
Net realized losses on                                                                                           
 futures contracts........             --       (394,725)           --            --            --            -- 
Net change in unrealized                                                                                         
 appreciation/depreciation                                                                                       
 of investments, futures                                                                                         
 contracts and translation                                                                                       
 of assets and liabilities                                                                                       
 in foreign currencies....   (119,505,890)  (116,377,503)  123,104,119     3,986,424    18,889,406   (22,407,559)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in net                                                                                       
 assets resulting from                                                                                           
 operations...............    (99,098,505)  (109,607,624)  136,967,189    17,658,848    35,057,507   (11,701,891)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Dividends and                                                                                                    
 distributions to                                                                                                
 shareholders from:                                                                                              
Institutional:                                                                                                   
Net investment income.....     (1,401,176)    (1,902,974)   (3,751,764)   (9,803,755)  (19,702,640)  (16,763,277)
In excess of net                                                                                                 
 investment income........             --             --       (32,244)           --            --        (3,048)
Net realized gains on                                                                                            
 investments..............             --    (11,154,898)  (21,132,304)           --            --            -- 
In excess of net realized                                                                                        
 gains on investments.....             --     (1,511,856)           --            --            --      (278,297)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Total dividends and                                                                                              
 distributions --                                                                                                
 Institutional Shares.....     (1,401,176)   (14,569,728)  (24,916,312)   (9,803,755)  (19,702,640)  (17,044,622)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                      
Net investment income.....        (38,489)       (16,663)      (89,117)     (207,030)     (593,993)     (643,405)
In excess of net                                                                                                 
 investment income........             --             --          (766)           --            --          (117)
Net realized gains on                                                                                            
 investments..............             --       (317,732)     (495,222)           --            --            -- 
In excess of net realized                                                                                        
 gains on investments.....             --        (43,063)           --            --            --       (12,034)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Total dividends and                                                                                              
 distributions --                                                                                                
 Investment Shares........        (38,489)      (377,458)     (585,105)     (207,030)     (593,993)     (655,556)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Total dividends and                                                                                              
 distributions to                                                                                                
 shareholders.............     (1,439,665)   (14,947,186)  (25,501,417)  (10,010,785)  (20,296,633)  (17,700,178)
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) from                                                                                         
 capital transactions.....    (15,940,669)   131,975,995   (57,507,421)  (21,419,105)  (18,635,883)   93,386,235 
                            -------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in net                                                                                       
 assets...................   (116,478,839)     7,421,185    53,958,351   (13,771,042)   (3,875,009)   63,984,166 
                            -------------  -------------  ------------  ------------  ------------  ------------ 
NET ASSETS at end of                                                                                             
 period...................  $ 485,789,883  $ 602,268,722  $594,847,537  $287,984,461  $301,755,503  $305,630,512 
                            =============  =============  ============  ============  ============  ============ 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

See Notes to Financial Statements.

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[LOGO OF KENT FUNDS]                                                            

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                                    Intermediate Bond Fund                      Short Term Bond Fund            
                            -----------------------------------------  ---------------------------------------- 
                            Period ended   Year ended     Year ended   Period ended   Year ended    Year ended  
                              July 31,    December 31,   December 31,    July 31,    December 31,  December 31, 
                              2001 (a)        2000           1999        2001 (a)        2000          1999     
                            ------------  ------------   ------------  ------------  ------------  ------------ 
                                                                                                                
NET ASSETS at beginning of                                                                                      
 period...................  $723,575,431  $ 855,056,723  $897,892,875  $173,295,525  $176,777,192  $145,355,056 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in net                                                                                      
 assets resulting from                                                                                          
 operations:                                                                                                    
 Net investment income....    18,235,497     50,427,847    50,281,025     5,463,023     9,831,105     8,574,181 
 Net realized                                                                                                   
  gains/(losses) on                                                                                             
  investment                                                                                                    
  transactions............    10,523,223    (10,280,492)  (14,169,768)    2,044,298    (1,112,315)     (292,208)
 Net change in unrealized                                                                                       
  appreciation/depreciation                                                                                     
  of investments..........    12,959,834     31,271,146   (47,446,428)    2,990,128     4,114,746    (4,657,164)
                            ------------  -------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                         
  net assets resulting                                                                                          
  from operations.........    41,718,554     71,418,501   (11,335,171)   10,497,449    12,833,536     3,624,809 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
Dividends and                                                                                                   
 distributions to                                                                                               
 shareholders from:                                                                                             
Institutional:                                                                                                  
 Net investment income....   (23,303,924)   (49,678,715)  (49,870,692)   (6,878,085)   (9,585,295)   (8,295,526)
 In excess of net                                                                                               
  investment income.......            --             --       (10,961)           --            --            -- 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                           
   distributions --                                                                                             
   Institutional Shares...   (23,303,924)   (49,678,715)  (49,881,653)   (6,878,085)   (9,585,295)   (8,295,526)
                            ------------  -------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                     
 Net investment income....      (277,873)      (665,799)     (654,403)     (113,030)     (229,130)     (275,645)
 In excess of net                                                                                               
  investment income.......            --             --          (144)           --            --            -- 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                           
   distributions --                                                                                             
   Investment Shares......      (277,873)      (665,799)     (654,547)     (113,030)     (229,130)     (275,645)
                            ------------  -------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                           
   distributions to                                                                                             
   shareholders...........   (23,581,797)   (50,344,514)  (50,536,200)   (6,991,115)   (9,814,425)   (8,571,171)
                            ------------  -------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) from                                                                                        
 capital transactions.....   (69,673,740)  (152,555,279)   19,035,219    59,981,844    (6,500,778)   36,368,498 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                         
  net assets..............   (51,536,983)  (131,481,292)  (42,836,152)   63,488,178    (3,481,667)   31,422,136 
                            ------------  -------------  ------------  ------------  ------------  ------------ 
NET ASSETS at end of                                                                                            
 period...................  $672,038,448  $ 723,575,431  $855,056,723  $236,783,703  $173,295,525  $176,777,192 
                            ============  =============  ============  ============  ============  ============ 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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                                     Tax-Free Income Fund                   Intermediate Tax-Free Fund         
                            ----------------------------------------  ---------------------------------------- 
                            Period ended   Year ended    Year ended   Period ended   Year ended    Year ended  
                              July 31,    December 31,  December 31,    July 31,    December 31,  December 31, 
                              2001 (a)        2000          1999        2001 (a)        2000          1999     
                            ------------  ------------  ------------  ------------  ------------  ------------ 
                                                                                                               
NET ASSETS at beginning of                                                                                     
 period...................  $134,662,855  $123,606,111  $130,170,230  $259,914,932  $306,693,718  $300,521,904 
                            ------------  ------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in net                                                                                     
 assets resulting from                                                                                         
 operations:                                                                                                   
 Net investment income....     3,150,142     6,212,690     5,442,101     6,227,493    12,587,716    13,122,259 
 Net realized                                                                                                  
  gains/(losses) on                                                                                            
  investment                                                                                                   
  transactions............     2,263,303     1,706,113    (1,090,627)    4,088,408     2,030,431    (1,498,246)
 Net change in unrealized                                                                                      
  appreciation/depreciation                                                                                    
  of investments..........      (737,678)    8,166,323    (8,469,132)     (293,707)    9,034,600   (14,931,504)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                        
  net assets resulting                                                                                         
  from operations.........     4,675,767    16,085,126    (4,117,658)   10,022,194    23,652,747    (3,307,491)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
Dividends and                                                                                                  
 distributions to                                                                                              
 shareholders from:                                                                                            
Institutional:                                                                                                 
 Net investment income....    (3,122,108)   (6,139,934)   (5,367,030)   (5,843,109)  (12,515,752)  (12,913,338)
 In excess of net                                                                                              
  investment income.......            --            --        (1,169)           --       (10,174)       (2,699)
 Net realized gains on                                                                                         
  investments.............      (606,786)           --            --      (497,540)           --            -- 
 In excess of net realized                                                                                     
  gains on investments....            --            --      (108,848)           --            --      (297,654)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                          
   distributions --                                                                                            
   Institutional Shares...    (3,728,894)   (6,139,934)   (5,477,047)   (6,340,649)  (12,525,926)  (13,213,691)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                    
 Net investment income....       (27,471)      (68,732)      (75,485)      (86,970)     (120,839)     (163,183)
 In excess of net                                                                                              
  investment income.......            --            --           (16)           --           (98)          (34)
 Net realized gains on                                                                                         
  investments.............        (5,342)           --            --        (5,194)           --            -- 
 In excess of net realized                                                                                     
  gains on investments....            --            --        (1,661)           --            --        (3,898)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                          
   distributions --                                                                                            
   Investment Shares......       (32,813)      (68,732)      (77,162)      (92,164)     (120,937)     (167,115)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                          
   distributions to                                                                                            
   shareholders...........    (3,761,707)   (6,208,666)   (5,554,209)   (6,432,813)  (12,646,863)  (13,380,806)
                            ------------  ------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) from                                                                                       
 capital transactions.....    (9,081,005)    1,180,284     3,107,748   (20,371,126)  (57,784,670)   22,860,111 
                            ------------  ------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                        
  net assets..............    (8,166,945)   11,056,744    (6,564,119)  (16,781,745)  (46,778,786)    6,171,814 
                            ------------  ------------  ------------  ------------  ------------  ------------ 
NET ASSETS at end of                                                                                           
 period...................  $126,495,910  $134,662,855  $123,606,111  $243,133,187  $259,914,932  $306,693,718 
                            ============  ============  ============  ============  ============  ============ 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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[LOGO OF KENT FUNDS]                                                            

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                                    Michigan Municipal                                                       
                                        Bond Fund                             Money Market Fund              
                          ----------------------------------------  ---------------------------------------- 
                          Period ended   Year ended    Year ended   Period ended   Year ended    Year ended  
                            July 31,    December 31,  December 31,    July 31,    December 31,  December 31, 
                            2001 (a)        2000          1999        2001 (a)        2000          1999     
                          ------------  ------------  ------------  ------------  ------------  ------------ 
                                                                                                             
NET ASSETS at beginning                                                                                      
 of period..............  $91,555,121   $106,985,205  $123,902,863  $730,383,701  $656,911,792  $697,127,619 
                          -----------   ------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) in                                                                                       
 net assets resulting                                                                                        
 from operations:                                                                                            
 Net investment income..    2,076,023      4,071,010     4,611,338    21,696,991    39,995,950    31,499,445 
 Net realized                                                                                                
  gains/(losses) on                                                                                          
  investment                                                                                                 
  transactions..........      283,425        302,823        41,857        47,233            21          (162)
 Net change in                                                                                               
  unrealized                                                                                                 
  appreciation/                                                                                              
  depreciation of                                                                                            
  investments...........    1,220,208      1,410,534    (3,892,509)           --            --            -- 
                          -----------   ------------  ------------  ------------  ------------  ------------ 
 Increase in net assets                                                                                      
  resulting from                                                                                             
  operations............    3,579,656      5,784,367       760,686    21,744,224    39,995,971    31,499,283 
                          -----------   ------------  ------------  ------------  ------------  ------------ 
Dividends and                                                                                                
 distributions to                                                                                            
 shareholders from:                                                                                          
Institutional:                                                                                               
 Net investment income..   (1,996,897)    (3,957,578)   (4,434,362)  (21,300,600)  (39,894,678)  (31,404,991)
 In excess of net                                                                                            
  investment income.....           --        (44,528)         (175)           --            --            -- 
 Net realized gains on                                                                                       
  investments...........     (104,563)      (126,960)      (12,125)           --            --            -- 
                          -----------   ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions --                                                                                          
   Institutional                                                                                             
   Shares...............   (2,101,460)    (4,129,066)   (4,446,662)  (21,300,600)  (39,894,678)  (31,404,991)
                          -----------   ------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                  
 Net investment income..      (79,023)      (151,534)     (197,142)     (396,390)     (101,272)      (94,454)
 In excess of net                                                                                            
  investment income.....           --         (1,705)           (8)           --            --            -- 
 Net realized gains on                                                                                       
  investments...........       (4,170)        (5,368)         (534)           --            --            -- 
                          -----------   ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions --                                                                                          
   Investment Shares....      (83,193)      (158,607)     (197,684)     (396,390)     (101,272)      (94,454)
                          -----------   ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions to                                                                                          
   shareholders.........   (2,184,653)    (4,287,673)   (4,644,346)  (21,696,990)  (39,995,950)  (31,499,445)
                          -----------   ------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) from                                                                                     
 capital transactions...   (8,825,090)   (16,926,778)  (13,033,998)   65,612,874    73,471,888   (40,215,665)
                          -----------   ------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                      
  net assets............   (7,430,087)   (15,430,084)  (16,917,658)   65,660,108    73,471,909   (40,215,827)
                          -----------   ------------  ------------  ------------  ------------  ------------ 
NET ASSETS at end of                                                                                         
 period.................  $84,125,034   $ 91,555,121  $106,985,205  $796,043,809  $730,383,701  $656,911,792 
                          ===========   ============  ============  ============  ============  ============ 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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                       STATEMENTS OF CHANGES IN NET ASSETS

                                                        [Enlarge/Download Table]

                                        Government                            Michigan Municipal             
                                    Money Market Fund                         Money Market Fund              
                          ----------------------------------------  ---------------------------------------- 
                          Period ended   Year ended    Year ended   Period ended   Year ended    Year ended  
                            July 31,    December 31,  December 31,    July 31,    December 31,  December 31, 
                            2001 (a)        2000          1999        2001 (a)        2000          1999     
                          ------------  ------------  ------------  ------------  ------------  ------------ 
                                                                                                             
NET ASSETS at beginning                                                                                      
 of period..............  $311,595,654  $215,520,656  $167,015,544  $295,379,371  $293,276,959  $323,617,493 
                          ------------  ------------  ------------  ------------  ------------  ------------ 
Increase in net assets                                                                                       
 resulting from                                                                                              
 operations:                                                                                                 
 Net investment income..    11,041,374    16,450,174     9,453,668     5,176,880    10,391,240     8,826,013 
 Net realized                                                                                                
  gains/(losses) on                                                                                          
  investment                                                                                                 
  transactions..........           252            --            --        (9,365)            1            -- 
                          ------------  ------------  ------------  ------------  ------------  ------------ 
 Increase in net assets                                                                                      
  resulting from                                                                                             
  operations............    11,041,626    16,450,174     9,453,668     5,167,515    10,391,241     8,826,013 
                          ------------  ------------  ------------  ------------  ------------  ------------ 
Dividends and                                                                                                
 distributions to                                                                                            
 shareholders from:                                                                                          
Institutional:                                                                                               
 Net investment income..   (10,402,130)  (16,436,987)   (9,447,725)   (5,174,178)  (10,379,214)   (8,806,391)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions--                                                                                           
   Institutional                                                                                             
   Shares...............   (10,402,130)  (16,436,987)   (9,447,725)   (5,174,178)  (10,379,214)   (8,806,391)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                  
 Net investment income..      (639,244)      (13,187)       (5,943)       (2,702)      (12,026)      (19,621)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions--                                                                                           
   Investment Shares....      (639,244)      (13,187)       (5,943)       (2,702)      (12,026)      (19,621)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
  Total dividends and                                                                                        
   distributions to                                                                                          
   shareholders.........   (11,041,374)  (16,450,174)   (9,453,668)   (5,176,880)  (10,391,240)   (8,826,012)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
Increase/(decrease) from                                                                                     
 capital transactions...   134,420,324    96,074,998    48,505,112    22,387,773     2,102,411   (30,340,535)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
 Increase/(decrease) in                                                                                      
  net assets............   134,420,576    96,074,998    48,505,112    22,378,408     2,102,412   (30,340,534)
                          ------------  ------------  ------------  ------------  ------------  ------------ 
NET ASSETS at end of                                                                                         
 period.................  $446,016,230  $311,595,654  $215,520,656  $317,757,779  $295,379,371  $293,276,959 
                          ============  ============  ============  ============  ============  ============ 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

See Notes to Financial Statements.

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                 NOTES TO FINANCIAL STATEMENTS
[LOGO OF KENT FUNDS]                                                            

1. Organization                                                                 

The Kent Funds (the "Trust") was organized as a Massachusetts business trust  
on May 9, 1986, and is registered under the Investment Company Act of 1940, as  
amended (the "1940 Act"), as an open-end management investment company. The     
Trust's Declaration of Trust authorizes the Trustees to issue an unlimited      
number of shares of beneficial interest without par value. The Trust may issue  
more than one series of shares and it may create one or more classes of shares  
within each series. Each share in each series or class has identical voting,    
dividend, liquidation and other rights, except in matters affecting only a      
particular series or class, in which case only shares of the affected series    
or class are entitled to vote. As of the date of this report, the Trust         
offered fifteen separate series, each with its own investment objective.        

The accompanying financial statements and financial highlights are those of   
the following: Kent Growth and Income Fund, Kent Index Equity Fund, Kent Large  
Company Growth Fund, Kent Small Company Growth Fund, Kent International Growth  
Fund, Kent Income Fund, Kent Intermediate Bond Fund, Kent Short Term Bond       
Fund, Kent Tax-Free Income Fund, Kent Intermediate Tax-Free Fund, Kent Michi-   
gan Municipal Bond Fund, Kent Money Market Fund, Kent Government Money Market   
Fund and Kent Michigan Municipal Money Market Fund (individually, a "Fund" and  
collectively, the "Funds"). Each fund currently offers two classes of shares:   
Investment Shares and Institutional Shares.                                     

During the current year, the Fund changed its fiscal year end to July 31.     

2. Significant Accounting Policies                                              

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

Security Valuation: Securities in the Money Market Fund, Government Money Mar-  
ket Fund and Michigan Municipal Money Market Fund (the "Money Market Funds")    
are valued utilizing the amortized cost valuation method permitted in accor-    
dance with Rule 2a-7 under the 1940 Act, which approximates market value. This  
method involves valuing a security initially at its cost on the date of pur-    
chase and thereafter assuming a constant amortization to maturity of the dif-   
ference between the principal amount due at maturity and initial cost. Invest-  
ments in investment companies are valued at their respective net asset values   
as reported by such companies.                                                  

In the Income Fund, Intermediate Bond Fund, Short Term Bond Fund, Tax-Free    
Income Fund, Intermediate Tax-Free Fund and Michigan Municipal Bond Fund, cor-  
porate debt securities, municipal securities and debt securities of the U.S.    
government and its agencies (other than short-term investments maturing in 60   
days or less) are valued on the basis of valuations provided by dealers or by   
an independent pricing service selected by the Funds' investment adviser ("Ad-  
visor") and approved by the Board of Trustees. Short-term obligations that      
mature in 60 days or less are valued at amortized cost, which approximates      
value. Investments in investment companies are valued at their respective net   
asset values as reported by such companies. All other securities and other      
assets are appraised at their fair value as determined in good faith under      
consistently applied procedures approved by and under the general supervision   
of the Board of Trustees.                                                       

The Growth and Income Fund, Index Equity Fund, Large Company Growth Fund,     
Small Company Growth Fund and International Growth Fund value listed securi-    
ties at the last sales price on the principal exchange where such securities    
are traded. Listed securities for which last sales prices are not available     
are valued at the last bid price. Unlisted securities on the National Market    
System are valued at the last sales price or, in the absence of any sales, the  
last bid price in the principal market where such securities trade. Short-term  
obligations that mature in 60 days or less are valued at amortized cost, which  
approximates market value. Investments in investment companies are valued at    
their respective net asset values as reported by such companies. All other      
securities and other assets are appraised at their fair value as determined in  
good faith under consistently applied procedures established by and under the   
general supervision of the Board of Trustees.                                   

Repurchase Agreements: Each Fund may agree to purchase portfolio securities     
from financial institutions subject to the seller's agreement to repurchase     
them at a mutually agreed upon date and price ("repurchase agreements"). Secu-  
rities subject to repurchase agreements are held either by the Trust's custo-   
dian and other banks acting in a subcustodian capacity or in the Federal        
Reserve/Treasury Book--Entry System. The underlying collateral is valued daily  
on a mark-to-market basis to determine that the value, including accrued        
interest, exceeds the repurchase price. In the event of the seller's default    
of the obligation to repurchase, the Funds have the right to liquidate the      
collateral and apply the proceeds in satisfaction of the obligation. Under      
certain circumstances, in the event of the default or bankruptcy by the other   
party to the agreement, realization and/or retention of the collateral may be   
subject to legal proceedings.                                                   

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                             NOTES TO FINANCIAL STATEMENTS (continued)

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

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

Futures Contracts: The Funds (except for the Money Market Funds) may invest in  
futures contracts. The use of futures contracts involves, to varying degrees,   
elements of market risk and risks in excess of the amount recognized in the     
Statements of Assets and Liabilities. The face or contract amounts reflect the  
extent of the involvement the Funds have in the particular classes of instru-   
ments. Risks include an imperfect correlation between the movements in the      
price of the instruments and the price of the underlying securities and inter-  
est rates. Risks may also arise if there is an illiquid secondary market for    
the instruments or if counterparties are unable to perform under the terms of   
the contract.                                                                   

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

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

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

Forward Commitments and When-Issued Securities:  Each Fund may purchase secu-   
rities on a "when-issued" basis or purchase or sell securities on a forward     
commitment (sometimes called delayed delivery) basis. A Fund will purchase      
securities on a when-issued basis or purchase or sell securities on a forward   
commitment basis only with the intention of completing the transaction and      
actually purchasing or selling the securities. If deemed advisable as a matter  
of investment strategy, however, a Fund may dispose of or negotiate a commit-   
ment after entering into it. A Fund also may sell securities it has committed   
to purchase before those securities are delivered to the Fund on the settle-    
ment date.                                                                      

Securities purchased or sold on a when-issued or forward commitment basis     
involve a risk of loss if the value of the security to be purchased declines,   
or the value of the security to be sold increases, before the settlement date.  
When a Fund engages in when-issued and forward commitment transactions, it      
relies on the other party to consummate the trade. Failure of such party to do  
so may result in the Fund incurring a loss or missing an opportunity to obtain  
a price considered to be advantageous.                                          

When a Fund purchases securities on a when-issued or forward commitment       
basis, the Fund will segregate cash or other liquid securities having a value   
(determined daily) at least equal to the amount of the Fund's purchase commit-  
ments. These procedures are designed to ensure that the Fund will maintain      
sufficient assets at all times to cover its obligations under when-issued and   
forward commitment transactions.                                                

Securities Lending: Each Fund may lend portfolio securities valued up to one-   
third of its total assets (including the value of the collateral received for   
the loan), pursuant to agreements requiring that the loan be continuously       
secured by collateral, which may consist of cash, securities issued or guaran-  
teed by the U.S. Government or its agencies or instrumentalities, irrevocable   
bank letters of credit or any other liquid high-grade short-term instrument     
approved for use as collateral by the Securities and Exchange Commission (or    
any combination there of). The Funds continue to earn interest on securities    
loaned while simultaneously seeking to earn interest on the investment of col-  
lateral. Collateral is marked to market daily to provide a level of collateral  
at least equal to the prior day market value of securities loaned.              

When cash is received as collateral for securities loaned, the Funds may      
invest such cash in short-term U.S. Government                                  

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

securities, repurchase agreements, or other securities with maturities equal    
to or less than maturity date of the applicable lending transaction. The cash   
or subsequent short-term investments are recorded as assets of the Funds, off-  
set by a corresponding liability to repay the cash at the termination of the    
loan. Fixed income securities received as collateral are not recorded as an     
asset or liability of the Fund because the Fund does not have effective con-    
trol of such securities.                                                        

There may be risks of delay in recovery of the securities or even loss of     
rights in the collateral should the borrower of the securities fail financial-  
ly. However, loans will be made only to borrowers deemed by the Advisor to be   
of good standing under guidelines established by the Board of Trustees and      
when, in the Advisor's judgment, the income to be earned from the loan justi-   
fies the attendant risks. Loans are subject to termination by the Funds or the  
borrower at any time, and are, therefore, not considered to be illiquid         
investments. As of July 31, 2001, the following Funds had securities on loan    
with the following market values and collateral amounts (amounts in thou-       
sands):                                                                         

                                                                [Download Table]

                                                                    Market Value
                                                      Market Value   of Loaned  
                                                      Of Collateral  Securities 
                                                      ------------- ------------
                                                                                
Growth and Income Fund...............................    $11,996      $11,614   
Index Equity Fund....................................     22,939       21,882   
Small Company Growth Fund............................     77,490       73,887   
International Growth Fund............................     45,785       43,307   
Income Fund..........................................     16,680       16,415   
Intermediate Bond Fund...............................    116,707      114,517   
Short Term Bond Fund.................................     15,768       15,386   

At July 31, 2001, each Fund's loaned securities were fully collateralized by  
cash, which was reinvested in short-term securities.                            

Mortgage Dollar Roll Transactions: The Bond Funds, Municipal Bond Funds and     
Money Market Funds may engage in dollar roll transactions. In a dollar roll     
transaction, the Fund sells a mortgage backed security and simultaneously       
agrees to repurchase a similar security on a specified future date at an        
agreed upon price. During the roll period, the Fund will not be entitled to     
receive any interest or principal paid on the securities sold. The Fund is      
compensated for the lost interest on the securities sold by the difference      
between the sales price and the lower price for the future repurchase as well   
as by the interest earned on the reinvestment of the sales proceeds. When a     
Fund enters into a mortgage dollar roll transaction, the Fund will hold and     
maintain in a separate account until the settlement date, cash or other liquid  
assets in an amount equal to the forward purchase price. At July 31, 2001, no   
Funds were engaged in dollar roll transactions.                                 

Securities Transactions and Investment Income: Securities transactions are      
recorded on the trade date. Net realized gains and losses on investments sold   
and on foreign currency transactions are recorded on the basis of identified    
cost. Interest income is recorded on the accrual basis and includes the amor-   
tization of premiums or accretion of discounts. Dividend income is recorded on  
the ex-dividend date.                                                           

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

Dividends and Distributions to Shareholders: The Money Market Funds declare     
dividends daily from net investment income and pay such dividends monthly. The  
remaining Funds declare and distribute dividends from net investment income     
monthly, with the exception of the Growth and Income Fund, Index Equity Fund,   
and Large Company Growth Fund which declare and pay dividends quarterly while   
Small Company Growth Fund and International Growth Fund declare and pay divi-   
dends annually. Net realized capital gains, if any, are distributed at least    
annually.                                                                       

The amounts of income and capital gains to be distributed are determined in   
accordance with income tax regulations. Such amounts may vary from income and   
capital gains recognized in accordance with accounting principles generally     
accepted in the United States of America. These "book/tax" differences are      
either considered temporary or permanent in nature. To the extent these dif-    
ferences are permanent in nature (i.e. reclass of market discounts, gain/loss,  
paydowns, distributions and premium amortization on debt securities) such       
amounts are reclassified within the composition of net assets based on their    
federal tax-basis treatment; temporary differences do not require reclassifi-   
cation. Dividends and distributions to shareholders which exceed net invest-    
ment income and net realized gains for tax purposes are reported as dividends   
in excess of net investment income or distributions in excess of net realized   
gains. To the extent they exceed net investment income and net realized gains   
for tax purposes, they are reported as distributions of paid-in-capital.        

Federal Income Taxes: For federal income tax purposes, each Fund is treated as  
a separate entity for the purpose of determining its qualification as a regu-   
lated investment company under the Internal Revenue Code (the "Code"). It is    
the policy of each Fund to continue to meet the requirements of the Code        
applicable to regulated investment companies,                                   

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                             NOTES TO FINANCIAL STATEMENTS (continued)

including the requirement that it distribute substantially all of its taxable   
income to shareholders. Therefore, no federal income tax provision is           
required.                                                                       

Withholding taxes on foreign dividends have been paid or provided for in      
accordance with the applicable country's tax rules and rates.                   

3. Related Party Transactions                                                   

On April 2, 2001, Old Kent Financial Corporation merged with Fifth Third      
Financial Corporation (the "Merger"). As a result of the Merger, the invest-    
ment advisory agreement between the Funds and Lyon Street Asset Management      
Company ("Lyon Street") automatically terminated. On February 13, 2001, the     
Board of Trustees of the Funds approved an interim investment advisory agree-   
ment pursuant to which Fifth Third Bank ("Fifth Third") became the advisor to   
the Funds effective on the date of the Merger.                                  

On April 30, 2001, Fifth Third reorganized its investment advisory division   
as Fifth Third Asset Management Inc., a separate, wholly owned subsidiary of    
Fifth Third. Fifth Third Asset Management Inc. replaced Fifth Third as the      
investment adviser to the Kent Funds. As of April 30, 2001, management and      
investment advisory personnel of Fifth Third that provided investment manage-   
ment services to Kent Funds began to do so as the personnel of Fifth Third      
Asset Management Inc.                                                           

At a meeting held on April 12, 2001, the Board of Trustees of the Funds       
approved a new investment advisory agreement between the Funds and Fifth Third  
Asset Management Inc. subject to approval of the agreement by the shareholders  
of the Funds at a meeting held on July 27, 2001. The Advisor is entitled to     
receive a fee, computed daily and paid monthly, based on each Fund's average    
daily net assets as follows: 0.70 percent for the Growth and Income Fund,       
Large Company Growth Fund and Small Company Growth Fund, 0.75 percent for the   
International Growth Fund, 0.30 percent for the Index Equity Fund, 0.50 per-    
cent for the Short Term Bond Fund and Intermediate Tax-Free Fund, 0.55 percent  
for the Intermediate Bond Fund and Tax-Free Income Fund, 0.60 percent for the   
Income Fund, 0.45 percent for the Michigan Municipal Bond Fund and 0.40 per-    
cent for the Money Market Fund, Government Money Market Fund and Michigan       
Municipal Money Market Fund.                                                    

Prior to April 2, 2001, Lyon Street served as advisor to the Funds under the  
same terms and conditions as the above mentioned agreements.                    

On April 2, 2001, Fifth Third assumed duties and obligations of Old Kent      
Securities Corporation ("OKSC") under the Administrative, Fund Accounting and   
Transfer Agency Agreements with the Kent Funds. Fifth Third Bank is located at  
38 Fountain Square Plaza, Cincinnati, Ohio 45263. As compensation for the       
services and facilities provided to the Trust pursuant to the Administration    
Agreement, Fifth Third is entitled to receive an annual fee, payable monthly    
as one twelfth of the annual fee, based on the Trust's aggregate average daily  
net assets as follows: up to $5.0 billion-0.185% of such assets; between $5.0   
and $7.5 billion-0.165% of such assets; and over $7.5 billion-0.135% of such    
assets, provided, however, that such annual fee shall be subject to an annual   
minimum fee of $45,000 per Fund that is applicable to Funds of the Trust. As    
compensation for the services provided to the Trust pursuant to the Fund        
Accounting Agreement, Fifth Third is entitled to receive a fee computed daily   
at the annual rate of 0.015% of the Trust's average daily net assets, provid-   
ed, however, that such annual fee shall be subject to an annual minimum fee of  
$5,000 per Fund that is applicable to certain Funds of the Trust. As compensa-  
tion for the services provided to the Trust pursuant to the Transfer Agency     
Agreement, Fifth Third is entitled to receive an annual fee of $16.50 per       
account for active accounts and $7.50 per account for closed accounts, provid-  
ed, however, that such annual fee shall be subject to an annual minimum fee of  
$15,000 per Fund that is applicable to certain Funds of the Trust.              

BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, Ohio 43219       
("BISYS"), provides certain administrative services to the Trust pursuant to    
agreements between Fifth Third and BISYS. As compensation for the services      
provided under the Sub-Administration Agreement, Sub-Fund Accounting Agreement  
and Sub-Transfer Agency Agreement, BISYS is entitled to receive a fee from      
Fifth Third computed daily as a percentage of the Trust's average daily net     
assets. Pursuant to the Sub-Transfer Agency Agreement, BISYS is also entitled   
to receive from Fifth Third per account annual processing fees for all Trust    
accounts in excess of 22,000 accounts. The fees paid to BISYS by Fifth Third    
for such services come out of Fifth Third's fees and are not an additional      
charge to the Funds.                                                            

Prior to April 2, 2001, OKSC provided the services mentioned above under the  
same terms and conditions of the above mentioned agreements.                    

Kent Funds Distributors, Inc. ("KFDI"), 3435 Stelzer Road, Columbus, Ohio     
43219, is the distributor of the Funds' shares. KFDI and BISYS are each a       
wholly-owned subsidiary of the BISYS Group, Inc.                                

The Trust has adopted a distribution plan (the "Plan") on behalf of the       
Investment Shares of the Funds pursuant to Rule 12b-1 of the 1940 Act. The      
Plan provides for payments to the Funds' distributor of up to 0.25% of the      
average daily net assets of the Investment Shares of the Funds.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

Certain officers of the Trust are affiliated with BISYS and Fifth Third. Such 
officers receive no direct payments or fees from the Trust for serving as offi- 
cers. A deferred compensation plan is available to trustees. As of July 31,     
2001, $127,930 in compensation has been deferred.                               

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

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                             NOTES TO FINANCIAL STATEMENTS (continued)

4. Capital Share Transactions                                                   

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                                  Growth and Income Fund                         Index Equity Fund               
                         ------------------------------------------  ------------------------------------------- 
                         Period ended   Year ended     Year ended    Period ended    Year ended     Year ended   
                           July 31,    December 31,   December 31,     July 31,     December 31,   December 31,  
                           2001 (a)        2000           1999         2001 (a)         2000           1999      
                         ------------  ------------   ------------   ------------   ------------   ------------  
                                                                                                                 
DOLLAR AMOUNTS                                                                                                   
Institutional:                                                                                                   
 Shares issued.......... $ 68,755,119  $ 165,613,875  $ 277,819,798  $ 146,668,945  $ 257,816,998  $ 199,778,408 
 Reinvestment of                                                                                                 
  distributions.........    3,672,739     20,641,406     15,842,666      2,843,326     13,119,006     20,227,589 
 Shares redeemed........  (90,744,923)  (252,012,517)  (398,650,525)  (116,131,280)  (185,813,133)  (242,642,155)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                   
   (decrease) from                                                                                               
   Institutional capital                                                                                         
   transactions.........  (18,317,065)   (65,757,236)  (104,988,061)    33,380,991     85,122,871    (22,636,158)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
Investment:                                                                                                      
 Shares issued..........    2,715,802     22,109,284     17,701,397      3,102,023     14,620,202     13,670,782 
 Reinvestment of                                                                                                 
  distributions.........      698,913      3,802,188      2,410,451        134,891        726,531      1,267,722 
 Shares redeemed........   (8,043,826)   (25,920,833)   (19,035,516)    (5,231,812)   (19,190,235)   (11,996,387)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                   
   (decrease) from                                                                                               
   Investment capital                                                                                            
   transactions.........   (4,629,111)        (9,361)     1,076,332     (1,994,898)    (3,843,502)     2,942,117 
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Total net increase                                                                                             
   (decrease) from                                                                                               
   capital                                                                                                       
   transactions......... $(22,946,176) $ (65,766,597) $(103,911,729) $  31,386,093  $  81,279,369  $ (19,694,041)
                         ============  =============  =============  =============  =============  ============= 
SHARE ACTIVITY                                                                                                   
Institutional:                                                                                                   
 Shares issued..........    4,501,086      8,874,567     14,599,481      6,215,349      9,522,262      7,671,249 
 Reinvestment of                                                                                                 
  distributions.........      252,997      1,090,169        826,101        126,222        475,123        759,240 
 Shares redeemed........   (5,764,376)   (13,131,374)   (21,073,132)    (4,909,178)    (6,762,488)    (9,310,489)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                   
   (decrease) from                                                                                               
   Institutional share                                                                                           
   transactions.........   (1,010,293)    (3,166,638)    (5,647,550)     1,432,393      3,234,897       (880,000)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
Investment:                                                                                                      
 Shares issued..........      178,107      1,198,508        927,802        131,463        533,481        521,404 
 Reinvestment of                                                                                                 
  distributions.........       48,601        204,345        126,161          5,992         26,124         47,372 
 Shares redeemed........     (519,411)    (1,417,325)      (994,683)      (220,805)      (703,705)      (455,348)
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                   
   (decrease) from                                                                                               
   Investment share                                                                                              
   transactions.........     (292,703)       (14,472)        59,280        (83,350)      (144,100)       113,428 
                         ------------  -------------  -------------  -------------  -------------  ------------- 
  Total net increase                                                                                             
   (decrease) from share                                                                                         
   transactions.........   (1,302,996)    (3,181,110)    (5,588,270)     1,349,043      3,090,797       (766,572)
                         ============  =============  =============  =============  =============  ============= 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                               Large Company Growth Fund                   Small Company Growth Fund           
                         ----------------------------------------  ------------------------------------------- 
                         Period ended   Year ended   Period ended  Period ended    Year ended     Year ended   
                           July 31,    December 31,  December 31,    July 31,     December 31,   December 31,  
                           2001 (a)        2000        1999 (b)      2001 (a)         2000           1999      
                         ------------  ------------  ------------  ------------   ------------   ------------  
                                                                                                               
DOLLAR AMOUNTS                                                                                                 
Institutional:                                                                                                 
 Shares issued.......... $ 63,823,802  $186,861,465  $169,096,866  $ 137,933,642  $ 295,468,117  $ 154,201,918 
 Shares issued in                                                                                              
  conversion............           --            --       940,516             --             --             -- 
 Reinvestment of                                                                                               
  distributions.........      182,594       626,488       166,586      1,247,383      3,772,717      8,812,315 
 Shares redeemed........  (53,495,423)  (52,866,304)  (10,690,724)  (175,147,562)  (236,942,015)  (324,647,618)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional capital                                                                                       
   transactions.........   10,510,973   134,621,649   159,513,244    (35,966,537)    62,298,819   (161,633,385)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
Investment:                                                                                                    
 Shares issued..........      206,191       723,309       239,932     18,691,010     20,344,645     13,329,530 
 Reinvestment of                                                                                               
  distributions.........          580         1,073           172         71,193        257,194        479,211 
 Shares redeemed........     (123,751)     (291,582)           --    (20,893,077)   (21,392,496)   (16,172,916)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment capital                                                                                          
   transactions.........       83,020       432,800       240,104     (2,130,874)      (790,657)    (2,364,175)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Total net increase                                                                                           
   (decrease) from                                                                                             
   capital                                                                                                     
   transactions......... $ 10,593,993  $135,054,449  $159,753,348  $ (38,097,411) $  61,508,162  $(163,997,560)
                         ============  ============  ============  =============  =============  ============= 
SHARE ACTIVITY                                                                                                 
Institutional:                                                                                                 
 Shares issued..........    7,048,209    16,520,338    16,269,657      7,884,307     15,094,030      9,832,586 
 Shares issued in                                                                                              
  conversion............           --            --        94,052             --             --             -- 
 Reinvestment of                                                                                               
  distributions.........       21,041        54,569        14,463         78,157        208,598        639,280 
 Shares redeemed........   (5,770,496)   (4,631,994)     (938,361)    (9,710,581)   (11,686,720)   (20,958,974)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional share                                                                                         
   transactions.........    1,298,754    11,942,913    15,439,811     (1,748,117)     3,615,908    (10,487,108)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
Investment:                                                                                                    
 Shares issued..........       22,467        63,203        21,339      1,050,974      1,034,297        806,814 
 Reinvestment of                                                                                               
  distributions.........           67            93            15          4,495         14,333         35,153 
 Shares redeemed........      (13,570)      (25,748)           --     (1,179,132)    (1,081,524)      (996,153)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment share                                                                                            
   transactions.........        8,964        37,548        21,354       (123,663)       (32,894)      (154,186)
                         ------------  ------------  ------------  -------------  -------------  ------------- 
  Total net increase                                                                                           
   (decrease) from share                                                                                       
   transactions.........    1,307,718    11,980,461    15,461,165     (1,871,780)     3,583,014    (10,641,294)
                         ============  ============  ============  =============  =============  ============= 

-------                                                                         
(a) For the period from January 1, 2001 through July 31, 2001.                  
(b) For the period from October 19, 1999 (commencement of operations) to        
December 31, 1999.                                                      

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                             NOTES TO FINANCIAL STATEMENTS (continued)

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                                 International Growth Fund                         Income Fund                 
                         -------------------------------------------  ---------------------------------------- 
                         Period ended    Year ended     Year ended    Period ended   Year ended    Year ended  
                           July 31,     December 31,   December 31,     July 31,    December 31,  December 31, 
                           2001 (a)         2000           1999         2001 (a)        2000          1999     
                         ------------   ------------   ------------   ------------  ------------  ------------ 
                                                                                                               
DOLLAR AMOUNTS                                                                                                 
Institutional:                                                                                                 
 Shares issued.......... $ 317,505,078  $ 312,857,477  $ 126,955,671  $ 25,545,299  $ 71,502,728  $131,273,521 
 Reinvestment of                                                                                               
  distributions.........       632,412      6,473,294     11,794,384     2,668,269     5,426,292     4,471,773 
 Shares redeemed........  (333,706,251)  (189,897,346)  (196,202,032)  (48,995,351)  (91,195,967)  (43,505,533)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional capital                                                                                       
   transactions.........   (15,568,761)   129,433,425    (57,451,977)  (20,781,783)  (14,266,947)   92,239,761 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
Investment:                                                                                                    
 Shares issued..........    99,370,665    152,883,976     22,160,970       715,644     2,270,094     4,937,662 
 Reinvestment of                                                                                               
  distributions.........        36,080        347,875        574,449       189,536       569,894       630,110 
 Shares redeemed........   (99,778,653)  (150,689,281)   (22,790,863)   (1,542,502)   (7,208,924)   (4,421,298)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment capital                                                                                          
   transactions.........      (371,908)     2,542,570        (55,444)     (637,322)   (4,368,936)    1,146,474 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Total net increase                                                                                           
   (decrease) from                                                                                             
   capital                                                                                                     
   transactions......... $ (15,940,669) $ 131,975,995  $ (57,507,421) $(21,419,105) $(18,635,883) $ 93,386,235 
                         =============  =============  =============  ============  ============  ============ 
SHARE ACTIVITY                                                                                                 
Institutional:                                                                                                 
 Shares issued..........    23,220,458     18,470,818      7,713,913     2,596,218     7,616,482    13,490,256 
 Reinvestment of                                                                                               
  distributions.........        46,365        363,007        757,883       272,466       579,386       463,507 
 Shares redeemed........   (24,089,804)   (11,177,079)   (11,876,965)   (4,961,262)   (9,673,225)   (4,473,527)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional share                                                                                         
   transactions.........      (822,981)     7,656,746     (3,405,169)   (2,092,578)   (1,477,357)    9,480,236 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
Investment:                                                                                                    
 Shares issued..........     7,265,686      8,954,015      1,283,948        72,841       242,162       509,039 
 Reinvestment of                                                                                               
  distributions.........         2,687         19,976         37,200        19,388        61,035        65,182 
 Shares redeemed........    (7,238,473)    (8,784,797)    (1,316,231)     (156,884)     (763,694)     (457,311)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment share                                                                                            
   transactions.........        29,900        189,194          4,917       (64,655)     (460,497)      116,910 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Total net increase                                                                                           
   (decrease) from share                                                                                       
   transactions.........      (793,081)     7,845,940     (3,400,252)   (2,157,233)   (1,937,854)    9,597,146 
                         =============  =============  =============  ============  ============  ============ 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                                  Intermediate Bond Fund                       Short Term Bond Fund            
                         -------------------------------------------  ---------------------------------------- 
                         Period ended    Year ended     Year ended    Period ended   Year ended    Year ended  
                           July 31,     December 31,   December 31,     July 31,    December 31,  December 31, 
                           2001 (a)         2000           1999         2001 (a)        2000          1999     
                         ------------   ------------   ------------   ------------  ------------  ------------ 
                                                                                                               
DOLLAR AMOUNTS                                                                                                 
Institutional:                                                                                                 
 Shares issued.......... $ 129,858,805  $ 200,230,874  $ 231,579,566  $ 84,524,769  $ 65,254,812  $ 86,481,060 
 Reinvestment of                                                                                               
  distributions.........    12,061,817     26,430,564     26,576,542     4,879,677     6,176,983     5,027,496 
 Shares redeemed........  (210,706,549)  (376,506,253)  (239,190,951)  (29,194,774)  (76,800,219)  (53,745,218)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional capital                                                                                       
   transactions.........   (68,785,927)  (149,844,815)    18,965,157    60,209,672    (5,368,424)   37,763,338 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
Investment:                                                                                                    
 Shares issued..........     1,103,212      3,174,372      4,714,196     2,276,915       392,596       607,835 
 Reinvestment of                                                                                               
  distributions.........       250,106        625,419        612,835       105,817       215,153       262,804 
 Shares redeemed........    (2,241,131)    (6,510,255)    (5,256,969)   (2,610,560)   (1,740,103)   (2,265,479)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment capital                                                                                          
   transactions.........      (887,813)    (2,710,464)        70,062      (227,828)   (1,132,354)   (1,394,840)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Total net increase                                                                                           
   (decrease) from                                                                                             
   capital                                                                                                     
   transactions......... $ (69,673,740) $(152,555,279) $  19,035,219  $ 59,981,844  $ (6,500,778) $ 36,368,498 
                         =============  =============  =============  ============  ============  ============ 
SHARE ACTIVITY                                                                                                 
Institutional:                                                                                                 
 Shares issued..........    13,274,265     21,256,423     23,876,600     8,652,072     6,860,630     8,983,559 
 Reinvestment of                                                                                               
  distributions.........     1,235,017      2,813,674      2,754,272       499,869       651,061       523,910 
 Shares redeemed........   (21,482,303)   (40,073,944)   (24,651,218)   (2,985,892)   (8,097,355)   (5,582,626)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Institutional share                                                                                         
   transactions.........    (6,973,021)   (16,003,847)     1,979,654     6,166,049      (585,664)    3,924,843 
                         -------------  -------------  -------------  ------------  ------------  ------------ 
Investment:                                                                                                    
 Shares issued..........       112,215        334,805        486,011       233,386        41,364        63,180 
 Reinvestment of                                                                                               
  distributions.........        25,574         66,427         63,357        10,855        22,719        27,376 
 Shares redeemed........      (227,990)      (686,055)      (542,512)     (267,524)     (183,713)     (234,980)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Net increase                                                                                                 
   (decrease) from                                                                                             
   Investment share                                                                                            
   transactions.........       (90,201)      (284,823)         6,856       (23,283)     (119,630)     (144,424)
                         -------------  -------------  -------------  ------------  ------------  ------------ 
  Total net increase                                                                                           
   (decrease) from share                                                                                       
   transactions.........    (7,063,222)   (16,288,670)     1,986,510     6,142,766      (705,294)    3,780,419 
                         =============  =============  =============  ============  ============  ============ 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                                  Tax-Free Income Fund                   Intermediate Tax-Free Fund         
                         ----------------------------------------  ---------------------------------------- 
                         Period ended   Year ended    Year ended   Period ended   Year ended    Year ended  
                           July 31,    December 31,  December 31,    July 31,    December 31,  December 31, 
                           2001 (a)        2000          1999        2001 (a)        2000          1999     
                         ------------  ------------  ------------  ------------  ------------  ------------ 
                                                                                                            
DOLLAR AMOUNTS                                                                                              
Institutional:                                                                                              
 Shares issued.......... $ 10,809,823  $ 40,736,667  $ 27,730,254  $ 11,882,770  $ 36,945,124  $ 52,130,072 
 Shares issued in                                                                                           
  merger................           --            --            --            --            --    31,650,596 
 Reinvestment of                                                                                            
  distributions.........      171,127       297,184       200,624       217,665       436,424       377,994 
 Shares redeemed........  (19,685,808)  (39,668,911)  (24,585,537)  (34,632,236)  (94,296,562)  (61,229,574)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Net increase                                                                                              
   (decrease) from                                                                                          
   Institutional capital                                                                                    
   transactions.........   (8,704,858)    1,364,940     3,345,341   (22,531,801)  (56,915,014)   22,929,088 
                         ------------  ------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                 
 Shares issued..........       86,858       654,225       849,540     3,008,885     1,469,180     1,775,624 
 Shares issued in                                                                                           
  merger................           --            --            --            --            --       394,701 
 Reinvestment of                                                                                            
  distributions.........       29,854        66,499        68,056        79,077       103,960       113,979 
 Shares redeemed........     (492,859)     (905,380)   (1,155,189)     (927,287)   (2,442,796)   (2,353,281)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Net increase                                                                                              
   (decrease) from                                                                                          
   Investment capital                                                                                       
   transactions.........     (376,147)     (184,656)     (237,593)    2,160,675      (869,656)      (68,977)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Total net increase                                                                                        
   (decrease) from                                                                                          
   capital                                                                                                  
   transactions......... $ (9,081,005) $  1,180,284  $  3,107,748  $(20,371,126) $(57,784,670) $ 22,860,111 
                         ============  ============  ============  ============  ============  ============ 
SHARE ACTIVITY                                                                                              
Institutional:                                                                                              
 Shares issued..........    1,009,961     4,037,588     2,666,079     1,107,227     3,588,978     4,957,817 
 Shares issued in                                                                                           
  merger................           --            --            --            --            --     2,959,418 
 Reinvestment of                                                                                            
  distributions.........       16,227        29,104        19,427        20,330        42,305        36,136 
 Shares redeemed........   (1,834,214)   (3,858,397)   (2,351,884)   (3,224,635)   (9,151,373)   (5,815,118)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Net increase                                                                                              
   (decrease) from                                                                                          
   Institutional share                                                                                      
   transactions.........     (808,026)      208,295       333,622    (2,097,078)   (5,520,090)    2,138,253 
                         ------------  ------------  ------------  ------------  ------------  ------------ 
Investment:                                                                                                 
 Shares issued..........        8,110        64,178        80,858       280,454       141,703       167,735 
 Shares issued in                                                                                           
  merger................           --            --            --            --            --        36,871 
 Reinvestment of                                                                                            
  distributions.........        2,789         6,513         6,542         7,404        10,074        10,867 
 Shares redeemed........      (45,706)      (88,262)     (111,534)      (86,196)     (237,714)     (223,752)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Net increase                                                                                              
   (decrease) from                                                                                          
   Investment share                                                                                         
   transactions.........      (34,807)      (17,571)      (24,134)      201,662       (85,937)       (8,279)
                         ------------  ------------  ------------  ------------  ------------  ------------ 
  Total net increase                                                                                        
   (decrease) from share                                                                                    
   transactions.........     (842,833)      190,724       309,488    (1,895,416)   (5,606,027)    2,129,974 
                         ============  ============  ============  ============  ============  ============ 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                              Michigan Municipal Bond Fund                        Money Market Fund                  
                         ----------------------------------------  ------------------------------------------------- 
                         Period ended   Year ended    Year ended    Period ended      Year ended       Year ended    
                           July 31,    December 31,  December 31,     July 31,       December 31,     December 31,   
                           2001 (a)        2000          1999         2001 (a)           2000             1999       
                         ------------  ------------  ------------   ------------     ------------     ------------   
                                                                                                                     
DOLLAR AMOUNTS                                                                                                       
Institutional:                                                                                                       
 Shares issued.......... $ 16,430,156  $ 20,726,439  $ 27,945,889  $ 1,264,318,646  $ 1,631,229,668  $ 1,493,337,247 
 Reinvestment of                                                                                                     
  distributions.........       93,293       167,788       102,580        4,183,585        5,139,715        3,427,735 
 Shares redeemed........  (25,232,626)  (37,012,489)  (39,680,824)  (1,218,735,409)  (1,563,705,275)  (1,535,393,344)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Net increase                                                                                                       
   (decrease) from                                                                                                   
   Institutional capital                                                                                             
   transactions.........   (8,709,177)  (16,118,262)  (11,632,355)      49,766,822       72,664,108      (38,628,362)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
Investment:                                                                                                          
 Shares issued..........      661,851       866,430     1,356,718      104,761,421       12,122,477       10,434,345 
 Reinvestment of                                                                                                     
  distributions.........       53,246       107,243       133,694           86,059           93,133           98,327 
 Shares redeemed........     (831,010)   (1,782,189)   (2,892,055)     (89,001,428)     (11,407,830)     (12,119,975)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Net increase                                                                                                       
   (decrease) from                                                                                                   
   Investment capital                                                                                                
   transactions.........     (115,913)     (808,516)   (1,401,643)      15,846,052          807,780       (1,587,303)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Total net increase                                                                                                 
   (decrease) from                                                                                                   
   capital                                                                                                           
   transactions......... $ (8,825,090) $(16,926,778) $(13,033,998) $    65,612,874  $    73,471,888  $   (40,215,665)
                         ============  ============  ============  ===============  ===============  =============== 
SHARE ACTIVITY                                                                                                       
Institutional:                                                                                                       
 Shares issued..........    1,606,226     2,080,073     2,761,659    1,264,318,646    1,631,229,668    1,493,337,247 
 Reinvestment of                                                                                                     
  distributions.........        9,354        16,838        10,176        4,183,585        5,139,715        3,427,735 
 Shares redeemed........   (2,467,253)   (3,722,823)   (3,924,536)  (1,218,735,409)  (1,563,705,275)  (1,535,393,344)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Net increase                                                                                                       
   (decrease) from                                                                                                   
   Institutional share                                                                                               
   transactions.........     (851,673)   (1,625,912)   (1,152,701)      49,766,822       72,664,108      (38,628,362)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
Investment:                                                                                                          
 Shares issued..........       64,798        86,698       132,963      104,761,421       12,122,477       10,434,345 
 Reinvestment of                                                                                                     
  distributions.........        5,223        10,785        13,229           86,059           93,133           98,327 
 Shares redeemed........      (81,319)     (179,033)     (284,472)     (89,001,428)     (11,407,830)     (12,119,975)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Net increase                                                                                                       
   (decrease) from                                                                                                   
   Investment share                                                                                                  
   transactions.........      (11,298)      (81,550)     (138,280)      15,846,052          807,780       (1,587,303)
                         ------------  ------------  ------------  ---------------  ---------------  --------------- 
  Total net increase                                                                                                 
   (decrease) from share                                                                                             
   transactions.........     (862,971)   (1,707,462)   (1,290,981)      65,612,874       73,471,888      (40,215,665)
                         ============  ============  ============  ===============  ===============  =============== 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)

Capital Share Transactions                                                      

Transactions in shares of the Funds are summarized below:                     

                                                        [Enlarge/Download Table]

                                        Government                               Michigan Municipal               
                                     Money Market Fund                            Money Market Fund               
                         -------------------------------------------  ------------------------------------------- 
                         Period ended    Year ended     Year ended    Period ended    Year ended     Year ended   
                           July 31,     December 31,   December 31,     July 31,     December 31,   December 31,  
                           2001 (a)         2000           1999         2001 (a)         2000           1999      
                         ------------   ------------   ------------   ------------   ------------   ------------  
                                                                                                                  
DOLLAR AMOUNTS                                                                                                    
Institutional:                                                                                                    
 Shares issued.......... $ 693,073,627  $ 864,140,098  $ 709,775,713  $ 210,376,308  $ 323,978,955  $ 377,994,496 
 Reinvestment of                                                                                                  
  distributions.........     5,172,303      8,185,799      5,906,319        291,027        336,129        346,566 
 Shares redeemed........  (597,678,934)  (778,015,480)  (667,203,871)  (188,333,763)  (321,715,239)  (408,993,597)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                    
   (decrease) from                                                                                                
   Institutional capital                                                                                          
   transactions.........   100,566,996     94,310,417     48,478,161     22,333,572      2,599,845    (30,652,535)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
Investment:                                                                                                       
 Shares issued..........   157,349,149      2,023,071        110,027        207,763      3,739,471      3,998,909 
 Reinvestment of                                                                                                  
  distributions.........         2,368          4,388          4,745          2,827         13,527         18,439 
 Shares redeemed........  (123,498,189)      (262,878)       (87,821)      (156,389)    (4,250,432)    (3,705,348)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                    
   (decrease) from                                                                                                
   Investment capital                                                                                             
   transactions.........    33,853,328      1,764,581         26,951         54,201       (497,434)       312,000 
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Total net increase                                                                                              
   (decrease) from                                                                                                
   capital                                                                                                        
   transactions......... $ 134,420,324  $  96,074,998  $  48,505,112  $  22,387,773  $   2,102,411  $ (30,340,535)
                         =============  =============  =============  =============  =============  ============= 
SHARE ACTIVITY                                                                                                    
Institutional:                                                                                                    
 Shares issued..........   693,073,627    864,140,098    709,775,713    210,376,308    323,978,955    377,994,496 
 Reinvestment of                                                                                                  
  distributions.........     5,172,303      8,185,799      5,906,319        291,027        336,129        346,566 
 Shares redeemed........  (597,678,934)  (778,015,480)  (667,203,871)  (188,333,763)  (321,715,239)  (408,993,597)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                    
   (decrease) from                                                                                                
   Institutional share                                                                                            
   transactions.........   100,566,996     94,310,417     48,478,161     22,333,572      2,599,845    (30,652,535)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
Investment:                                                                                                       
 Shares issued..........   157,349,149      2,023,071        110,027        207,763      3,739,471      3,998,909 
 Reinvestment of                                                                                                  
  distributions.........         2,368          4,388          4,745          2,827         13,527         18,439 
 Shares redeemed........  (123,498,189)      (262,878)       (87,821)      (156,389)    (4,250,432)    (3,705,348)
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Net increase                                                                                                    
   (decrease) from                                                                                                
   Investment share                                                                                               
   transactions.........    33,853,328      1,764,581         26,951         54,201       (497,434)       312,000 
                         -------------  -------------  -------------  -------------  -------------  ------------- 
  Total net increase                                                                                              
   (decrease) from share                                                                                          
   transactions.........   134,420,324     96,074,998     48,505,112     22,387,773      2,102,411    (30,340,535)
                         =============  =============  =============  =============  =============  ============= 

-------                                                                         
(a)  For the period from January 1, 2001 through July 31, 2001.                 

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                             NOTES TO FINANCIAL STATEMENTS (continued)
[LOGO OF KENT FUNDS]                                                            

5. Purchases and Sales of Securities                                            

The cost of purchases and proceeds from sales of securities, excluding short- 
term investments, for the period ended July 31, 2001, were as follows:          

                                                                [Download Table]

 Fund                                                  Purchases      Sales    
 ----                                                  ---------      -----    
                                                                               
Growth and Income Fund............................... $ 28,704,159 $ 43,573,539
Index Equity Fund....................................   65,348,449   30,574,045
Large Company Growth Fund............................   36,327,109   19,926,938
Small Company Growth Fund............................  101,128,328  138,688,812
International Growth Fund............................  113,730,201  114,691,672
Income Fund..........................................  356,383,577  387,112,236
Intermediate Bond Fund...............................  909,025,473  986,475,442
Short Term Bond Fund.................................  153,957,520  108,382,496
Tax-Free Income Fund.................................  109,588,746  115,749,407
Intermediate Tax-Free Fund...........................   83,764,221  105,886,387
Michigan Municipal Bond Fund.........................   16,075,215   24,419,564

6. Risks Associated with Foreign Securities and Currencies                      

The Growth and Income Fund, the Large Company Growth Fund and the Interna-    
tional Growth Fund can purchase securities of foreign issuers. Investing in     
securities of foreign issuers involves special risks not typically associated   
with investing in securities of U.S. issuers.                                   

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

7. Concentration of Credit Risk                                                 

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

The Tax-Free Income Fund, Intermediate Tax-Free Fund, Michigan Municipal Bond 
Fund and the Michigan Municipal Money Market Fund had the following concentra-  
tions by industry sector at July 31, 2001 (as a percentage of total invest-     
ments):                                                                         

                                                                [Download Table]

                                                     Michigan      Michigan     
                          Tax-Free    Intermediate   Municipal  Municipal Money 
                         Income Fund  Tax-Free Fund  Bond Fund    Market Fund   
                         -----------  -------------  ---------  --------------- 
                                                                                
Airport.................       11.41%          6.79%      2.03%              --%
Development.............        0.93           2.41       6.40            62.85 
Education...............       10.04           2.13         --               -- 
Facilities..............        0.22           4.75      13.16             0.98 
General Obligation......       27.15          23.13      11.08             5.22 
Higher Education........        2.74           4.38       5.36             0.76 
Housing.................        1.01             --         --               -- 
Medical.................        1.11           2.56      14.64             6.43 
Multi-family Housing....          --             --       1.57             2.43 
Mutual Funds............        2.59           5.47       1.74             5.68 
Nursing Homes...........          --             --       2.48               -- 
Pollution...............          --           3.94       3.96            12.17 
Power...................        1.73           6.83       3.48               -- 
School District.........       18.69          12.30      17.82             2.78 
Single-family Housing...        2.29           2.61       3.84               -- 
Student Loan............        2.35           3.79       4.30             0.39 
Transportation..........       11.79           8.04       6.77               -- 
Utilities...............        5.95           6.45       0.94             0.31 
Water...................          --           4.42       0.43               -- 
                              ------         ------     ------           ------ 
                              100.00%        100.00%    100.00%          100.00%
                              ======         ======     ======           ====== 

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                             NOTES TO FINANCIAL STATEMENTS (continued)

8. Federal Income Tax Information                                               

Capital Loss Carryforward (unaudited): At July 31, 2001, the following Funds    
had net capital loss carryforwards to offset future net capital gains, if any,  
to the extent provided by the Treasury regulations:                             

                                                                [Download Table]

Fund                                                              Amount    Year
----                                                              ------    ----
                                                                                
Index Equity Fund.............................................. $ 4,024,449 2009
                                                                ===========     
Large Company Growth Fund......................................   1,723,437 2008
                                                                 26,002,168 2009
                                                                -----------     
                                                                $27,725,605     
                                                                ===========     
Short Term Bond Fund...........................................   2,273,687 2002
                                                                    467,881 2003
                                                                    438,260 2004
                                                                  1,927,928 2005
                                                                    237,955 2006
                                                                    219,707 2007
                                                                  1,126,162 2008
                                                                -----------     
                                                                $ 6,691,580     
                                                                ===========     
Government Money Market Fund................................... $       514 2006
                                                                ===========     
Michigan Municipal Money Market Fund...........................      10,595 2005
                                                                      9,365 2009
                                                                -----------     
                                                                $    19,960     
                                                                ===========     

Long Term Capital Gains Distributions (unaudited): During the period ended      
July 31, 2001, the following Funds paid long-term capital gain distributions    
in the following amounts:                                                       

                                                                [Download Table]

Fund                                                                   Amount  
----                                                                   ------  
                                                                               
Growth and Income Fund.............................................. $9,635,984
Small Company Growth Fund...........................................  2,620,273
Tax-Free Income Fund................................................    612,160
Michigan Municipal Bond Fund........................................    108,249

Dividend Received Deduction (unaudited): For corporate shareholders, the fol-   
lowing percentages of the total ordinary income distributions paid during the   
period January 1, 2001 through July 31, 2001 qualify for the corporate divi-    
dends received deductions:                                                      

                                                                [Download Table]

Fund                                                                  Percentage
----                                                                  ----------
                                                                                
Growth and Income Fund...............................................  100.00%  
Index Equity Fund....................................................  100.00%  
Large Company Growth Fund............................................  100.00%  

Tax-Exempt Income Distributions (unaudited): During the period January 1, 2001  
through July 31, 2001, the following Funds declared tax-exempt income distri-   
butions in the following amounts:                                               

                                                                [Download Table]

Fund                                                                   Amount  
----                                                                   ------  
                                                                               
Tax-Free Income Fund................................................ $3,133,818
Michigan Municipal Bond Fund........................................  2,074,666
Michigan Municipal Money Market Fund................................  5,522,251

9. Change in Accounting Principle                                               
As required, effective January 1, 2001, the Funds have adopted the provisions 
of the AICPA Audit and Accounting Guide for Investment Companies and began      
amortizing discount or premium on debt securities. Prior to January 1, 2001,    
the Income Fund, Intermediate Bond Fund and Short Term Bond Fund did not amor-  
tize premiums and the Tax-Free Income Fund, Intermediate Tax-Free Fund and      
Michigan Municipal Bond Fund did not accrete discounts on debt securities. The  
cumulative effect of this accounting change had no impact on total net assets   
of the Fund, but resulted in the following change in cost of securities and     
the corresponding change in net unrealized appreciation (depreciation), based   
on securities held by the Fund on January 1, 2001.                              

                                                                [Download Table]

                                                                    Unrealized  
                                                       Cost of     appreciation 
Fund                                                 securities   (depreciation)
----                                                 ----------   --------------
                                                                                
Income Bond Fund.................................... $(1,161,754)   $1,161,754  
Intermediate Bond Fund..............................  (3,446,963)    3,446,963  
Short Term Bond Fund................................    (968,712)      968,712  
Tax-Free Income Fund................................      19,127       (19,127) 
Intermediate Tax-Free Fund..........................     291,404      (291,404) 
Michigan Municipal Bond Fund........................       4,555        (4,555) 

The effect of this change for the period ended July 31, 2001 was as follows:  

                                                                [Download Table]

                                             Net        Unrealized    Realized  
                                         Investment    appreciation    gains    
Fund                                       Income     (depreciation)  (losses)  
----                                     ----------   --------------  --------  
                                                                                
Income Bond Fund........................ $  (572,067)   $(108,994)   $  681,061 
Intermediate Bond Fund..................  (1,791,652)    (968,408)    2,760,060 
Short Term Bond Fund....................    (544,703)       9,385       535,318 
Tax-Free Income Fund....................       7,153       (6,981)         (172)
Intermediate Tax-Free Fund..............      47,318        9,867       (57,185)
Michigan Municipal Bond Fund............       4,536       (3,085)       (1,451)

The statements of changes in net assets and financial highlights for prior    
periods have not been restated to reflect this change in presentation.          

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FINANCIAL HIGHLIGHTS                                                          

EQUITY FUNDS                                                                  

INSTITUTIONAL SHARES                                                          

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

                                                        [Enlarge/Download Table]

                                  Increase (Decrease) in Net                                                   
                                     Assets Resulting from                                                     
                                          Operations                                                           
                                -------------------------------                                                
                                              Net Realized and                                                 
                                              Unrealized Gains                                                 
                                                 (Losses) on                                                   
                                                Investments,            Net                                    
                      Net Asset               Futures Contracts Increase/(Decrease)                            
                       Value,        Net         and Foreign       in Net Assets                               
                      Beginning  Investment       Currency        Resulting from                               
                      of Period Income/(Loss)   Translations        Operations                                 
------------------------------------------------------------------------------------                           
                                                                                                               
GROWTH AND INCOME FUND -- Ticker Symbol: KNVEX                                                                 
Year ended    1996     $13.25        0.30            2.16               2.46                                   
Year ended    1997     $13.90        0.25            3.04               3.29                                   
Year ended    1998     $15.55        0.13            4.03               4.16                                   
Year ended    1999     $18.03        0.12            3.20               3.32                                   
Year ended    2000     $20.42        0.07           (2.24)             (2.17)                                  
Period ended  2001(2)  $16.84        0.03           (1.43)             (1.40)                                  
------------------------------------------------------------------------------------                           
INDEX EQUITY FUND -- Ticker Symbol: KNIEX                                                                      
Year ended    1996     $12.56        0.26            2.47               2.73                                   
Year ended    1997     $14.71        0.25            4.50               4.75                                   
Year ended    1998     $19.14        0.24            5.14               5.38                                   
Year ended    1999     $24.24        0.24            4.68               4.92                                   
Year ended    2000     $28.31        0.22           (2.81)             (2.59)                                  
Period ended  2001(2)  $25.18        0.12           (2.08)             (1.96)                                  
------------------------------------------------------------------------------------                           
LARGE COMPANY GROWTH FUND -- Ticker Symbol: KLCGX                                                              
Period ended  1999(3)  $10.00        0.01            1.88               1.89                                   
Year ended    2000     $11.87        0.03           (1.84)             (1.81)                                  
Period ended  2001(2)  $10.01        0.01           (1.11)             (1.10)                                  
------------------------------------------------------------------------------------                           
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEEX                                                              
Year ended    1996     $13.82        0.12            2.55               2.67                                   
Year ended    1997     $15.65        0.04            4.19               4.23                                   
Year ended    1998     $18.39        0.03           (1.08)             (1.05)                                  
Year ended    1999     $15.46        0.02            4.16               4.18                                   
Year ended    2000     $19.29          --           (0.08)             (0.08)                                  
Period ended  2001(2)  $19.02       (0.02)          (1.08)             (1.10)                                  
------------------------------------------------------------------------------------                           
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNINX                                                              
Year ended    1996     $14.18        0.13            0.70               0.83                                   
Year ended    1997     $14.75        0.11            0.26               0.37                                   
Year ended    1998     $14.89        0.14            2.48               2.62                                   
Year ended    1999     $15.91        0.11            4.20               4.31                                   
Year ended    2000     $19.45        0.09           (3.42)             (3.33)                                  
Period ended  2001(2)  $15.67        0.10           (2.82)             (2.72)                                  
------------------------------------------------------------------------------------                           

                             Less Dividends and Distributions from                                             
                     ---------------------------------------------------------                                 
                                            Net Realized                                                       
                                             Gains on                                                          
                                            Investments,                                                       
                                              Futures                                                          
                                  In Excess  Contracts   In Excess     Total        Net    Net Asset           
                         Net       of Net   and Foreign   of Net     Dividends   Change in  Value,             
                      Investment Investment   Currency   Realized       and      Net Asset  End of    Total    
                        Income     Income   Translations   Gains   Distributions   Value    Period   Return    
-------------------------------------------------------------------------------------------------------------- 
                                                                                                               
GROWTH AND INCOME FUND -- Ticker Symbol: KNVEX                                                                 
Year ended   1996       (0.30)       --       (1.51)         --       (1.81)       0.65    $ 13.90   19.47%    
Year ended   1997       (0.25)       --       (1.39)         --       (1.64)       1.65    $ 15.55   24.14%    
Year ended   1998       (0.13)    (0.01)      (1.54)         --       (1.68)       2.48    $ 18.03   28.07%    
Year ended   1999       (0.12)       --       (0.81)         --       (0.93)       2.39    $ 20.42   18.79%    
Year ended   2000       (0.07)       --       (1.34)         --       (1.41)      (3.58)   $ 16.84  (11.25%)   
Period ended 2001(2)    (0.03)       --       (0.24)         --       (0.27)      (1.67)   $ 15.17   (8.24%)   
-------------------------------------------------------------------------------------------------------------- 
INDEX EQUITY FUND -- Ticker Symbol: KNIEX                                                                      
Year ended   1996       (0.26)       --       (0.28)      (0.04)      (0.58)       2.15    $ 14.71   22.18%    
Year ended   1997       (0.25)       --       (0.05)      (0.02)      (0.32)       4.43    $ 19.14   32.55%    
Year ended   1998       (0.24)       --       (0.04)         --       (0.28)       5.10    $ 24.24   28.26%    
Year ended   1999       (0.24)       --       (0.61)         --       (0.85)       4.07    $ 28.31   20.55%    
Year ended   2000       (0.22)       --       (0.19)      (0.13)      (0.54)      (3.13)   $ 25.18   (9.30%)   
Period ended 2001(2)    (0.11)       --          --          --       (0.11)      (2.07)   $ 23.11   (7.83%)   
-------------------------------------------------------------------------------------------------------------- 
LARGE COMPANY GROWTH FUND -- Ticker Symbol: KLCGX                                                              
Period ended 1999(3)    (0.01)       --       (0.01)         --       (0.02)       1.87    $ 11.87   18.91%/\/\
Year ended   2000       (0.03)       --       (0.01)      (0.01)      (0.05)      (1.86)   $ 10.01  (15.25%)   
Period ended 2001(2)    (0.01)       --          --          --       (0.01)      (1.11)   $  8.90  (10.96%)   
-------------------------------------------------------------------------------------------------------------- 
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEEX                                                              
Year ended   1996       (0.12)       --       (0.72)         --       (0.84)       1.83    $ 15.65   19.56%    
Year ended   1997       (0.04)    (0.02)      (1.43)         --       (1.49)       2.74    $ 18.39   27.94%    
Year ended   1998       (0.03)       --       (1.85)         --       (1.88)      (2.93)   $ 15.46   (6.15%)   
Year ended   1999       (0.02)       --       (0.32)      (0.01)      (0.35)       3.83    $ 19.29   27.98%    
Year ended   2000          --        --       (0.19)         --       (0.19)      (0.27)   $ 19.02   (0.38%)   
Period ended 2001(2)       --        --       (0.06)         --       (0.06)      (1.16)   $ 17.86   (5.75%)   
-------------------------------------------------------------------------------------------------------------- 
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNINX                                                              
Year ended   1996       (0.10)    (0.02)      (0.13)      (0.01)      (0.26)       0.57    $ 14.75    5.87%    
Year ended   1997       (0.09)    (0.06)      (0.07)      (0.01)      (0.23)       0.14    $ 14.89    2.54%    
Year ended   1998       (0.07)    (0.12)      (1.41)         --       (1.60)       1.02    $ 15.91   17.92%    
Year ended   1999       (0.12)       --       (0.65)         --       (0.77)       3.54    $ 19.45   28.30%    
Year ended   2000       (0.06)       --       (0.34)      (0.05)      (0.45)      (3.78)   $ 15.67  (17.41%)   
Period ended 2001(2)    (0.04)       --          --          --       (0.04)      (2.76)   $ 12.91  (17.38%)   
-------------------------------------------------------------------------------------------------------------- 

                                        Ratios/Supplemental Data                                               
                        ----------------------------------------------------------                             

                                                 Ratio of Net                                                  
                          Net Assets,  Ratio of   Investment    Ratio of                                       
                            End of     Expenses  Income (Loss)  Expenses   Portfolio                           
                            Period    to Average  to Average   to Average  Turnover                            
                            (000's)   Net Assets  Net Assets   Net Assets* Rate (1)                            
--------------------------------------------------------------------------------------                         
                                                                                                               
GROWTH AND INCOME FUND -- Ticker Symbol: KNVEX                                                                 
Year ended    1996        $500,857      0.95%        2.18%       0.95%        39%                              
Year ended    1997        $697,973      0.92%        1.61%       0.93%        88%                              
Year ended    1998        $827,828      0.93%        0.77%       0.94%        20%                              
Year ended    1999        $822,414      0.92%        0.62%       0.93%         9%                              
Year ended    2000        $624,860      0.91%        0.35%       0.92%        14%                              
Period ended  2001(2)     $547,524      0.93%        0.40%       0.94%         5%                              
--------------------------------------------------------------------------------------                         
INDEX EQUITY FUND -- Ticker Symbol: KNIEX                                                                      
Year ended    1996        $243,438      0.49%        1.91%       0.59%         2%                              
Year ended    1997        $590,241      0.43%        1.44%       0.54%         1%                              
Year ended    1998        $771,147      0.42%        1.10%       0.55%        12%                              
Year ended    1999        $875,780      0.42%        0.92%       0.54%         9%                              
Year ended    2000        $860,647      0.40%        0.80%       0.53%         9%                              
Period ended  2001(2)     $822,909      0.40%        0.86%       0.53%         4%                              
--------------------------------------------------------------------------------------                         
LARGE COMPANY GROWTH FUND -- Ticker Symbol: KLCGX                                                              
Period ended  1999(3)     $183,259      0.97%/\      0.39%/\     0.98%/\      --                               
Year ended    2000        $273,998      0.93%        0.32%       0.94%         5%                              
Period ended  2001(2)     $255,259      0.94%        0.26%       0.94%         8%                              
--------------------------------------------------------------------------------------                         
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEEX                                                              
Year ended    1996        $544,081      0.96%        0.78%       0.96%        16%                              
Year ended    1997        $719,998      0.93%        0.24%       0.94%        32%                              
Year ended    1998        $760,335      0.94%        0.18%       0.95%        41%                              
Year ended    1999        $746,428      0.94%        0.14%       0.95%        19%                              
Year ended    2000        $804,758      0.91%       (0.11%)      0.92%        28%                              
Period ended  2001(2)     $724,275      0.93%       (0.16%)      0.93%        13%                              
--------------------------------------------------------------------------------------                         
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNINX                                                              
Year ended    1996        $387,799      1.09%        0.97%       1.09%        13%                              
Year ended    1997        $492,598      1.05%        0.80%       1.06%         3%                              
Year ended    1998        $528,500      1.05%        0.87%       1.06%        22%                              
Year ended    1999        $579,650      1.02%        0.72%       1.03%         8%                              
Year ended    2000        $587,107      1.00%        0.47%       1.01%         7%                              
Period ended  2001(2)     $472,951      1.02%        1.28%       1.02%        22%                              
--------------------------------------------------------------------------------------                         

* During various periods, certain fees were voluntarily reduced. The ratios   
shown do not include these voluntary fee reductions.                      
/\ Annualized.                                                                
/\/\Not Annualized.                                                           
(1) Portfolio turnover is calculated on the basis of the Fund as a whole      
without distinguishing between the classes of shares issued.          
(2)  For the period from January 1, 2001 through July 31, 2001. The Fund      
changed its fiscal year end to July 31.                             
(3)  The Institutional Class of the Large Company Growth Fund commenced       
operations on October 19, 1999.                                     

See Notes to Financial Statements.

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FINANCIAL HIGHLIGHTS                                                          

EQUITY FUNDS                                                                  
INVESTMENT SHARES                                                             

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

                                                        [Enlarge/Download Table]

                                  Increase (Decrease) in Net                                                 
                                     Assets Resulting from                                                   
                                          Operations                                                         
                                -------------------------------                                              
                                              Net Realized and                                               
                                              Unrealized Gains                                               
                                                 (Losses) on                                                 
                                                Investments,            Net                                  
                      Net Asset               Futures Contracts Increase/(Decrease)                          
                       Value,        Net         and Foreign       in Net Assets                             
                      Beginning  Investment       Currency        Resulting from                             
                      of Period Income/(Loss)   Translations        Operations                               
------------------------------------------------------------------------------------                         
                                                                                                             
GROWTH AND INCOME FUND -- Ticker Symbol: KNVIX                                                               
Year ended    1996     $13.19        0.26            2.15               2.41                                 
Year ended    1997     $13.81        0.21            3.02               3.23                                 
Year ended    1998     $15.44        0.08            4.00               4.08                                 
Year ended    1999     $17.88        0.07            3.18               3.25                                 
Year ended    2000     $20.25        0.02           (2.22)             (2.20)                                
Period ended  2001(3)  $16.69        0.02           (1.42)             (1.40)                                
------------------------------------------------------------------------------------                         
INDEX EQUITY FUND -- Ticker Symbol: KNIOX                                                                    
Year ended    1996     $12.57        0.22            2.48               2.70                                 
Year ended    1997     $14.72        0.20            4.51               4.71                                 
Year ended    1998     $19.15        0.18            5.14               5.32                                 
Year ended    1999     $24.25        0.18            4.68               4.86                                 
Year ended    2000     $28.32        0.15           (2.80)             (2.65)                                
Period ended  2001(3)  $25.20        0.09           (2.09)             (2.00)                                
------------------------------------------------------------------------------------                         
LARGE COMPANY GROWTH FUND -- Ticker Symbol: N/A                                                              
Period ended  1999(4)  $10.00          --            1.88               1.88                                 
Year ended    2000     $11.86        0.01           (1.84)             (1.83)                                
Period ended  2001(3)  $10.00          --           (1.10)             (1.10)                                
------------------------------------------------------------------------------------                         
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEMX                                                            
Year ended    1996     $13.81        0.07            2.54               2.61                                 
Year ended    1997     $15.61          --            4.19               4.19                                 
Year ended    1998     $18.33       (0.01)          (1.08)             (1.09)                                
Year ended    1999     $15.39       (0.02)           4.15               4.13                                 
Year ended    2000     $19.19          --           (0.13)             (0.13)                                
Period ended  2001(3)  $18.87       (0.04)          (1.06)             (1.10)                                
------------------------------------------------------------------------------------                         
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNIVX                                                            
Year ended    1996     $14.13        0.12            0.66               0.78                                 
Year ended    1997     $14.69        0.08            0.25               0.33                                 
Year ended    1998     $14.79        0.10            2.46               2.56                                 
Year ended    1999     $15.75        0.08            4.14               4.22                                 
Year ended    2000     $19.20        0.05           (3.38)             (3.33)                                
Period ended  2001(3)  $15.46        0.09           (2.81)             (2.72)                                
------------------------------------------------------------------------------------                         

                          Less Dividends and Distributions from                                              
                   --------------------------------------------------------                                  
                                       Net Realized                                                          
                                         Gains on                                                            
                                        Investments,                                                         
                                           Futures                                                           
                              In Excess   Contracts  In Excess     Total        Net    Net Asset             
                      Net      of Net   and Foreign   of Net     Dividends   Change in  Value,               
                   Investment Investment   Currency   Realized      and      Net Asset  End of     Total     
                     Income    Income   Translations   Gains   Distributions   Value    Period   Return (1)  
------------------------------------------------------------------------------------------------------------ 
                                                                                                             
GROWTH AND INCOME FUND -- Ticker Symbol: KNVIX                                                               
Year ended 1996      (0.26)    (0.02)      (1.51)         --       (1.79)       0.62    $13.81     19.14%    
Year ended 1997      (0.21)       --       (1.39)         --       (1.60)       1.63    $15.44     23.89%    
Year ended 1998      (0.08)    (0.02)      (1.54)         --       (1.64)       2.44    $17.88     27.68%    
Year ended 1999      (0.07)       --       (0.81)         --       (0.88)       2.37    $20.25     18.53%    
Year ended 2000      (0.02)       --       (1.34)         --       (1.36)      (3.56)   $16.69    (11.47%)   
Period ended 2001(3) (0.03)       --       (0.24)         --       (0.27)      (1.67)   $15.02     (8.36%)   
------------------------------------------------------------------------------------------------------------ 
INDEX EQUITY FUND -- Ticker Symbol: KNIOX                                                                    
Year ended 1996      (0.22)    (0.01)      (0.32)         --       (0.55)       2.15    $14.72     21.92%    
Year ended 1997      (0.20)    (0.01)      (0.06)      (0.01)      (0.28)       4.43    $19.15     32.24%    
Year ended 1998      (0.18)       --       (0.04)         --       (0.22)       5.10    $24.25     27.93%    
Year ended 1999      (0.18)       --       (0.61)         --       (0.79)       4.07    $28.32     20.24%    
Year ended 2000      (0.15)       --       (0.19)      (0.13)      (0.47)      (3.12)   $25.20     (9.52%)   
Period ended 2001(3) (0.10)       --          --          --       (0.10)      (2.10)   $23.10     (7.94%)   
------------------------------------------------------------------------------------------------------------ 
LARGE COMPANY GROWTH FUND -- Ticker Symbol: N/A                                                              
Period ended 1999    (0.01)       --       (0.01)         --       (0.02)       1.86    $11.86     18.87%/\/\
Year ended 2000      (0.01)       --       (0.01)      (0.01)      (0.03)      (1.86)   $10.00    (15.53%)   
Period ended 2001(3) (0.01)       --          --          --       (0.01)      (1.11)   $ 8.89    (11.01%)   
------------------------------------------------------------------------------------------------------------ 
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEMX                                                            
Year ended 1996      (0.08)    (0.01)      (0.72)         --       (0.81)       1.80    $15.61     19.16%    
Year ended 1997         --     (0.04)      (1.43)         --       (1.47)       2.72    $18.33     27.71%    
Year ended 1998         --        --       (1.85)         --       (1.85)      (2.94)   $15.39     (6.40%)   
Year ended 1999         --        --       (0.32)      (0.01)      (0.33)       3.80    $19.19     27.73%    
Year ended 2000         --        --       (0.19)         --       (0.19)      (0.32)   $18.87     (0.59%)   
Period ended 2001(3)    --        --       (0.06)         --       (0.06)      (1.16)   $17.71     (5.85%)   
------------------------------------------------------------------------------------------------------------ 
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNIVX                                                            
Year ended 1996      (0.08)       --       (0.14)         --       (0.22)       0.56    $14.69      5.57%    
Year ended 1997      (0.06)    (0.09)      (0.07)      (0.01)      (0.23)       0.10    $14.79      2.25%    
Year ended 1998         --     (0.19)      (1.41)         --       (1.60)       0.96    $15.75     17.60%    
Year ended 1999      (0.12)       --       (0.65)         --       (0.77)       3.45    $19.20     27.95%    
Year ended 2000      (0.02)       --       (0.34)      (0.05)      (0.41)      (3.74)   $15.46    (17.61%)   
Period ended 2001(3) (0.04)       --          --          --       (0.04)      (2.76)   $12.70    (17.64%)   
------------------------------------------------------------------------------------------------------------ 

                                             Ratios/Supplemental Data                                        
                             ----------------------------------------------------------                      

                                                      Ratio of Net                                           
                               Net Assets, Ratio of   Investment    Ratio of                                 
                                End of     Expenses  Income (Loss)  Expenses   Portfolio                     
                                Period    to Average  to Average   to Average  Turnover                      
                                (000's)   Net Assets  Net Assets   Net Assets* Rate (2)                      
------------------------------------------------------------------------------------------                   
                                                                                                             
GROWTH AND INCOME FUND -- Ticker Symbol: KNVIX                                                               
Year ended 1996                 $15,063      1.09%        1.77%       1.09%        39%                       
Year ended 1997                 $35,343      1.17%        1.31%       1.18%        88%                       
Year ended 1998                 $50,458      1.18%        0.50%       1.19%        20%                       
Year ended 1999                 $58,336      1.18%        0.36%       1.19%         9%                       
Year ended 2000                 $47,847      1.16%        0.10%       1.17%        14%                       
Period ended 2001(3)            $38,659      1.18%        0.15%       1.19%         5%                       
------------------------------------------------------------------------------------------                   
INDEX EQUITY FUND -- Ticker Symbol: KNIOX                                                                    
Year ended 1996                 $ 9,925      0.74%        1.67%       0.84%         2%                       
Year ended 1997                 $27,922      0.68%        1.20%       0.79%         1%                       
Year ended 1998                 $38,205      0.67%        0.85%       0.80%        12%                       
Year ended 1999                 $47,836      0.67%        0.67%       0.79%         9%                       
Year ended 2000                 $38,930      0.65%        0.55%       0.78%         9%                       
Period ended 2001(3)            $33,765      0.65%        0.61%       0.78%         4%                       
------------------------------------------------------------------------------------------                   
LARGE COMPANY GROWTH FUND -- Ticker Symbol: N/A                                                              
Period ended 1999(4)            $   253      1.23%/\      0.00%/\     1.24%/\      --                        
Year ended 2000                 $   589      1.18%        0.08%       1.19%         5%                       
Period ended 2001(3)            $   604      1.19%        0.01%       1.19%         8%                       
------------------------------------------------------------------------------------------                   
SMALL COMPANY GROWTH FUND -- Ticker Symbol: KNEMX                                                            
Year ended 1996                 $14,436      1.21%        0.53%       1.21%        16%                       
Year ended 1997                 $22,784      1.18%       (0.01%)      1.19%        32%                       
Year ended 1998                 $23,455      1.19%       (0.07%)      1.20%        41%                       
Year ended 1999                 $26,282      1.19%       (0.11%)      1.20%        19%                       
Year ended 2000                 $25,231      1.16%       (0.36%)      1.17%        28%                       
Period ended 2001(3)            $21,481      1.18%       (0.41%)      1.18%        13%                       
------------------------------------------------------------------------------------------                   
INTERNATIONAL GROWTH FUND -- Ticker Symbol: KNIVX                                                            
Year ended 1996                 $ 8,799      1.34%        0.74%       1.34%        13%                       
Year ended 1997                 $ 9,780      1.30%        0.53%       1.31%         3%                       
Year ended 1998                 $12,390      1.30%        0.59%       1.31%        22%                       
Year ended 1999                 $15,197      1.27%        0.47%       1.28%         8%                       
Year ended 2000                 $15,162      1.25%        0.22%       1.26%         7%                       
Period ended 2001(3)            $12,839      1.27%        1.06%       1.27%        22%                       
------------------------------------------------------------------------------------------                   

*   During various periods, certain fees were voluntarily reduced. The ratios 
shown do not include these voluntary fee reductions.                  
/\  Annualized.                                                               
/\/\Not Annualized.                                                           
(1) Calculation does not include sales charge. Effective May 1, 1997, the     
Investment Shares were not assessed a sales charge.                   
(2) Portfolio turnover is calculated on the basis of the Fund as a whole      
without distinguishing between the classes of shares issued.          
(3) For the period from January 1, 2001 through July 31, 2001. The Fund       
changed its fiscal year end to July 31.                               
(4) The Investment Class of the Large Company Growth Fund commenced           
operations on October 19, 1999.                                       

See Notes to Financial Statements.

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FINANCIAL HIGHLIGHTS                                                          

BOND FUNDS                                                                    

INSTITUTIONAL SHARES                                                          

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

                                                        [Enlarge/Download Table]

                                Increase (Decrease) in                                                                         
                                 Net Assets Resulting                                                                          
                                    from Operations                             Less Dividends and Distributions from          
                                -----------------------                --------------------------------------------------------
                                           Net Realized                                                                        
                                               and      Net Increase/                                       In                 
                      Net Asset             Unrealized  (Decrease) in             In Excess      Net      Excess               
                       Value,      Net        Gains       Net Assets      Net       of Net    Realized    of Net      Total    
                      Beginning Investment (Losses) on  Resulting from Investment Investment  Gains on   Realized Dividends and
                      of Period  Income/\  Investments/\  Operations     Income     Income   Investments  Gains   Distributions
 ------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               
INCOME FUND -- Ticker Symbol: KNIIX                                                                                            
Year ended    1996     $10.84      0.66       (0.56)         0.10        (0.65)     (0.10)      (0.03)       --       (0.78)   
Year ended    1997     $10.16      0.68        0.34          1.02        (0.68)        --       (0.20)       --       (0.88)   
Year ended    1998     $10.30      0.65        0.27          0.92        (0.65)        --       (0.24)       --       (0.89)   
Year ended    1999     $10.33      0.60       (1.05)        (0.45)       (0.60)        --          --     (0.01)      (0.61)   
Year ended    2000     $ 9.27      0.61        0.45          1.06        (0.61)        --          --        --       (0.61)   
Period ended  2001(2)  $ 9.72      0.28        0.31          0.59        (0.34)        --          --        --       (0.34)   
 ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND -- Ticker Symbol: KNFIX                                                                                 
Year ended    1996     $10.12      0.60       (0.32)         0.28        (0.61)     (0.03)         --        --       (0.64)   
Year ended    1997     $ 9.76      0.59        0.14          0.73        (0.59)        --          --        --       (0.59)   
Year ended    1998     $ 9.90      0.58        0.16          0.74        (0.58)        --          --        --       (0.58)   
Year ended    1999     $10.06      0.56       (0.68)        (0.12)       (0.57)        --          --        --       (0.57)   
Year ended    2000     $ 9.37      0.60        0.29          0.89        (0.60)        --          --        --       (0.60)   
Period ended  2001(2)  $ 9.66      0.25        0.32          0.57        (0.33)        --          --        --       (0.33)   
 ------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND -- Ticker Symbol: KNLMX                                                                                   
Year ended    1996     $ 9.96      0.61       (0.21)         0.40        (0.61)        --          --        --       (0.61)   
Year ended    1997     $ 9.75      0.61          --          0.61        (0.61)        --          --        --       (0.61)   
Year ended    1998     $ 9.75      0.56        0.02          0.58        (0.56)        --          --        --       (0.56)   
Year ended    1999     $ 9.77      0.53       (0.29)         0.24        (0.53)        --          --        --       (0.53)   
Year ended    2000     $ 9.48      0.57        0.18          0.75        (0.57)        --          --        --       (0.57)   
Period ended  2001(2)  $ 9.66      0.26        0.23          0.49        (0.32)        --          --        --       (0.32)   
 ------------------------------------------------------------------------------------------------------------------------------

                                                Ratios/Supplemental Data                                                       
                                     -----------------------------------------------                                           
                                              Ratio of  Ratio of  Ratio of                                                     
               Net     Net             Net    Expenses    Net     Expenses                                                     
              Change  Asset          Assets,     to    Investment    to                                                        
              in Net  Value,          End of  Average  Income to  Average  Portfolio                                           
              Asset   End of Total    Period    Net     Average     Net    Turnover                                            
              Value   Period Return  (000's)   Assets  Net Assets Assets*  Rate (1)                                            
 ------------------------------------------------------------------------------------------------------------------------------
                                                                                                                               
INCOME FUND -- Ticker Symbol: KNIIX                                                                                            
Year ended    (0.68)  $10.16  1.19%  $240,060   0.83%     6.57%     0.83%     102%                                             
Year ended     0.14   $10.30 10.55%  $229,778   0.82%     6.65%     0.83%      84%                                             
Year ended     0.03   $10.33  9.29%  $231,017   0.83%     6.25%     0.84%     108%                                             
Year ended    (1.06)  $ 9.27 (4.41%) $295,017   0.83%     6.25%     0.84%      90%                                             
Year ended     0.45   $ 9.72 11.91%  $295,093   0.82%     6.51%     0.82%     135%                                             
Period ended   0.25   $ 9.97  6.19%  $281,795   0.83%     4.87%     0.84%     131%                                             
 ------------------------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND -- Ticker Symbol: KNFIX                                                                                 
Year ended    (0.36)  $ 9.76  3.01%  $769,395   0.77%     6.18%     0.78%     135%                                             
Year ended     0.14   $ 9.90  7.80%  $762,740   0.75%     6.03%     0.76%     114%                                             
Year ended     0.16   $10.06  7.65%  $885,580   0.76%     5.77%     0.77%     106%                                             
Year ended    (0.69)  $ 9.37 (1.22%) $843,520   0.77%     5.83%     0.78%      84%                                             
Year ended     0.29   $ 9.66  9.74%  $714,445   0.76%     6.29%     0.77%     168%                                             
Period ended   0.24   $ 9.90  6.16%  $663,571   0.78%     4.52%     0.78%     141%                                             
 ------------------------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND -- Ticker Symbol: KNLMX                                                                                   
Year ended    (0.21)  $ 9.75  4.22%  $235,430   0.70%     6.17%     0.70%      32%                                             
Year ended       --   $ 9.75  6.42%  $139,739   0.72%     6.04%     0.73%      89%                                             
Year ended     0.02   $ 9.77  6.14%  $139,229   0.76%     5.74%     0.77%      72%                                             
Year ended    (0.29)  $ 9.48  2.50%  $172,204   0.75%     5.56%     0.76%      60%                                             
Year ended     0.18   $ 9.66  8.12%  $169,790   0.73%     6.03%     0.74%      73%                                             
Period ended   0.17   $ 9.83  5.29%  $233,444   0.74%     4.48%     0.75%      56%                                             
 ------------------------------------------------------------------------------------------------------------------------------

/\ As required, effective January 1, 2000, the Fund has adopted the           
provisions of the AICPA Audit and Accounting Guide for Investment       
 Companies and began amortizing premiums on debt securities. The effect of
this change for the period ended July 31, 2001 for the Income Fund,     
Intermediate Bond Fund and Short Term Bond Fund was to decrease net     
  investment income per share by ($0.02), ($0.03) and ($0.02), respectively,
 increase net realized and unrealized gains and losses per share by $0.02,
$0.03 and $0.02, respectively, and decrease the ratio of net investment 
  income to average net assets from 5.21% to 4.87%, 4.97% to 4.52% and 4.93%
to 4.48%, respectively. Per share, ratios and supplemental data for     
periods prior to January 1, 2000 have not been restated to reflect this 
change in presentation.                                                 
*   During various periods, certain fees were voluntarily reduced. The ratios 
shown do not include these voluntary fee reductions.                  
(1) Portfolio turnover is calculated on the basis of the Fund as a whole      
without distinguishing between the classes of shares issued.          
(2) For the period from January 1, 2001 through July 31, 2001. The Fund       
changed its fiscal year end to July 31.                               

See Notes to Financial Statements.  

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FINANCIAL HIGHLIGHTS                                                          

BOND FUNDS                                                                    

INVESTMENT SHARES                                                             

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

                                                        [Enlarge/Download Table]

                                     Increase (Decrease) in Net                                             
                                        Assets Resulting from                                               
                                             Operations                                                     
                                   ------------------------------                                           
                                                    Net Realized              Net                           
                         Net Asset                 and Unrealized     Increase/(Decrease)                   
                          Value,         Net       Gains (Losses)        in Net Assets                      
                         Beginning    Investment         on             Resulting from                      
                         of Period     Income/\     Investments/\         Operations                        
-------------------------------------------------------------------------------------------                 
                                                                                                            
INCOME FUND -- Ticker Symbol: KIFIX                                                                         
Year ended  1996          $10.82        0.66            (0.56)              0.10                            
Year ended  1997          $10.16        0.63             0.35               0.98                            
Year ended  1998          $10.29        0.62             0.28               0.90                            
Year ended  1999          $10.32        0.58            (1.06)             (0.48)                           
Year ended  2000          $ 9.25        0.59             0.46               1.05                            
Period ended  2001(3)     $ 9.71        0.27             0.30               0.57                            
-------------------------------------------------------------------------------------------                 
INTERMEDIATE BOND FUND -- Ticker Symbol: KNFVX                                                              
Year ended  1996          $10.14        0.58            (0.32)              0.26                            
Year ended  1997          $ 9.78        0.57             0.15               0.72                            
Year ended  1998          $ 9.93        0.54             0.16               0.70                            
Year ended  1999          $10.08        0.54            (0.68)             (0.14)                           
Year ended  2000          $ 9.40        0.57             0.28               0.85                            
Period ended  2001(3)     $ 9.68        0.25             0.32               0.57                            
-------------------------------------------------------------------------------------------                 
SHORT TERM BOND FUND -- Ticker Symbol: KNLIX                                                                
Year ended  1996          $ 9.95        0.59            (0.20)              0.39                            
Year ended  1997          $ 9.74        0.57             0.02               0.59                            
Year ended  1998          $ 9.74        0.55             0.02               0.57                            
Year ended  1999          $ 9.76        0.52            (0.30)              0.22                            
Year ended  2000          $ 9.47        0.56             0.18               0.74                            
Period ended  2001(3)     $ 9.65        0.23             0.25               0.48                            
-------------------------------------------------------------------------------------------                 


                                  Less Dividends and Distributions from                                     
                         --------------------------------------------------------                           

                                                              In                   Net     Net              
                                    In Excess      Net      Excess                Change  Asset             
                            Net       of Net    Realized    of Net      Total     in Net  Value,            
                         Investment Investment  Gains on   Realized Dividends and Asset   End of   Total    
                           Income     Income   Investments  Gains   Distributions Value   Period Return (1) 
------------------------------------------------------------------------------------------------------------
                                                                                                            
INCOME FUND -- Ticker Symbol: KIFIX                                                                         
Year ended  1996           (0.64)     (0.09)      (0.03)       --       (0.76)    (0.66)  $10.16    1.16%   
Year ended  1997           (0.65)        --       (0.20)       --       (0.85)     0.13   $10.29   10.19%   
Year ended  1998           (0.60)     (0.03)      (0.24)       --       (0.87)     0.03   $10.32    9.04%   
Year ended  1999           (0.58)        --          --     (0.01)      (0.59)    (1.07)  $ 9.25   (4.76%)  
Year ended  2000           (0.59)        --          --        --       (0.59)     0.46   $ 9.71   11.65%   
Period ended  2001(3)      (0.33)        --          --        --       (0.33)     0.24   $ 9.95    6.05%   
------------------------------------------------------------------------------------------------------------
INTERMEDIATE BOND FUND -- Ticker Symbol: KNFVX                                                              
Year ended  1996           (0.57)     (0.05)         --        --       (0.62)    (0.36)  $ 9.78    2.76%   
Year ended  1997           (0.57)        --          --        --       (0.57)     0.15   $ 9.93    7.62%   
Year ended  1998           (0.55)        --          --        --       (0.55)     0.15   $10.08    7.26%   
Year ended  1999           (0.54)        --          --        --       (0.54)    (0.68)  $ 9.40   (1.36%)  
Year ended  2000           (0.57)        --          --        --       (0.57)     0.28   $ 9.68    9.44%   
Period ended  2001(3)      (0.32)        --          --        --       (0.32)     0.25   $ 9.93    5.98%   
------------------------------------------------------------------------------------------------------------
SHORT TERM BOND FUND -- Ticker Symbol: KNLIX                                                                
Year ended  1996           (0.54)     (0.06)         --        --       (0.60)    (0.21)  $ 9.74    4.06%   
Year ended  1997           (0.59)        --          --        --       (0.59)       --   $ 9.74    6.26%   
Year ended  1998           (0.52)     (0.03)         --        --       (0.55)     0.02   $ 9.76    6.00%   
Year ended  1999           (0.51)        --          --        --       (0.51)    (0.29)  $ 9.47    2.35%   
Year ended  2000           (0.56)        --          --        --       (0.56)     0.18   $ 9.65    7.96%   
Period ended  2001(3)      (0.31)        --          --        --       (0.31)     0.17   $ 9.82    5.20%   
------------------------------------------------------------------------------------------------------------

                                    Ratios/Supplemental Data                                                
                         ---------------------------------------------                                      
                                 Ratio of  Ratio of  Ratio of                                               
                           Net   Expenses    Net     Expenses                                               
                         Assets,    to    Investment    to                                                  
                         End of  Average  Income to  Average  Portfolio                                     
                         Period    Net     Average     Net    Turnover                                      
                         (000's)  Assets  Net Assets Assets*  Rate (2)                                      
------------------------------------------------------------------------                                    
                                                                                                            
INCOME FUND -- Ticker Symbol: KIFIX                                                                         
Year ended  1996         $ 2,722   1.08%     6.31%     1.08%     102%                                       
Year ended  1997         $ 5,611   1.07%     6.38%     1.08%      84%                                       
Year ended  1998         $10,629   1.08%     5.97%     1.09%     108%                                       
Year ended  1999         $10,614   1.08%     5.99%     1.09%      90%                                       
Year ended  2000         $ 6,663   1.07%     6.27%     1.07%     135%                                       
Period ended  2001(3)    $ 6,190   1.08%     4.61%     1.09%     131%                                       
------------------------------------------------------------------------                                    
INTERMEDIATE BOND FUND -- Ticker Symbol: KNFVX                                                              
Year ended  1996         $ 7,327   1.02%     5.92%     1.03%     135%                                       
Year ended  1997         $ 6,972   1.00%     5.79%     1.01%     114%                                       
Year ended  1998         $12,313   1.01%     5.51%     1.02%     106%                                       
Year ended  1999         $11,537   1.02%     5.58%     1.03%      84%                                       
Year ended  2000         $ 9,130   1.01%     6.04%     1.02%     168%                                       
Period ended  2001(3)    $ 8,467   1.03%     4.26%     1.03%     141%                                       
------------------------------------------------------------------------                                    
SHORT TERM BOND FUND -- Ticker Symbol: KNLIX                                                                
Year ended  1996         $ 1,667   0.85%     6.02%     0.96%      32%                                       
Year ended  1997         $ 7,433   0.88%     5.75%     0.99%      89%                                       
Year ended  1998         $ 6,126   0.91%     5.60%     1.02%      72%                                       
Year ended  1999         $ 4,573   0.90%     5.40%     1.01%      60%                                       
Year ended  2000         $ 3,505   0.88%     5.88%     0.99%      73%                                       
Period ended  2001(3)    $ 3,340   0.89%     4.22%     1.00%      56%                                       
------------------------------------------------------------------------                                    

/\   As required, effective January 1, 2000, the Fund has adopted the           
provisions of the AICPA Audit and Accounting Guide for Investment     
   Companies and began amortizing premiums on debt securities. The effect of
this change for the period ended July 31, 2001 for the Income Fund,   
Intermediate Bond Fund and Short Term Bond Fund was to decrease net   
    investment income per share by ($0.02), ($0.03) and ($0.02), respectively,
   increase net realized and unrealized gains and losses per share by $0.02,
 $0.03 and $0.02, respectively, and decrease the ratio of net investment
    income to average net assets from 4.95% to 4.61%, 4.70% to 4.26% and 4.67%
to 4.22%, respectively. Per share, ratios and supplemental data for   
 periods prior to January 1, 2000 have not been restated to reflect this
change in presentation.                                               
*   During various periods, certain fees were voluntarily reduced. The ratios 
shown do not include these voluntary fee reductions.                  
(1) Calculation does not include sales charge. Effective May 1, 1997, the     
Investment Shares were not assessed a sales charge.                   
(2) Portfolio turnover is calculated on the basis of the Fund as a whole      
without distinguishing between the classes of shares issued.          
(3) For the period from January 1, 2001 through July 31, 2001. The Fund       
changed its fiscal year end to July 31.                               

See Notes to Financial Statements.  

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FINANCIAL HIGHLIGHTS                                                          

TAX-FREE BOND FUNDS                                                           

INSTITUTIONAL SHARES                                                          

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

                                                        [Enlarge/Download Table]

                                  Increase (Decrease) in Net                                                  
                                     Assets Resulting from                                                    
                                          Operations                                                          
                                  ---------------------------                                                 
                                             Net Realized and                                                 
                                                Unrealized            Net                                     
                        Net Asset             Gains (Losses)  Increase/(Decrease)                             
                         Value,      Net      on Investments     in Net Assets                                
                        Beginning Investment   and Futures      Resulting from                                
                        of Period  Income/\     Contracts/\       Operations                                  
------------------------------------------------------------------------------------                          
                                                                                                              
TAX-FREE INCOME FUND -- Ticker Symbol: KNTIX                                                                  
Year ended  1996         $10.49      0.46         (0.06)              0.40                                    
Year ended  1997         $10.27      0.45          0.41               0.86                                    
Year ended  1998         $10.65      0.44          0.15               0.59                                    
Year ended  1999         $10.75      0.45         (0.79)             (0.34)                                   
Year ended  2000         $ 9.95      0.47          0.73               1.20                                    
Period ended  2001 (2)   $10.68      0.26          0.12               0.38                                    
------------------------------------------------------------------------------------                          
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMTX                                                            
Year ended  1996         $10.52      0.44         (0.08)              0.36                                    
Year ended  1997         $10.42      0.45          0.26               0.71                                    
Year ended  1998         $10.68      0.45          0.11               0.56                                    
Year ended  1999         $10.76      0.44         (0.55)             (0.11)                                   
Year ended  2000         $10.20      0.46          0.43               0.89                                    
Period ended  2001 (2)   $10.63      0.27          0.16               0.43                                    
------------------------------------------------------------------------------------                          
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMIX                                                          
Year ended  1996         $10.12      0.39         (0.04)              0.35                                    
Year ended  1997         $10.08      0.41          0.13               0.54                                    
Year ended  1998         $10.21      0.40          0.08               0.48                                    
Year ended  1999         $10.27      0.41         (0.34)              0.07                                    
Year ended  2000         $ 9.93      0.43          0.18               0.61                                    
Period ended  2001 (2)   $10.10      0.24          0.16               0.40                                    
------------------------------------------------------------------------------------                          

                                 Less Dividends and Distributions from                                        
                        --------------------------------------------------------                              

                                             Net Realized                                                     
                                   In Excess  Gains on   In Excess                  Net    Net Asset          
                          Net       of Net   Investments   of Net       Total     Change in  Value,           
                       Investment Investment and Futures  Realized  Dividends and Net Asset  End of   Total   
                         Income     Income    Contracts     Gains   Distributions   Value    Period   Return  
--------------------------------------------------------------------------------------------------------------
                                                                                                              
TAX-FREE INCOME FUND -- Ticker Symbol: KNTIX                                                                  
Year ended  1996         (0.46)       --        (0.16)         --       (0.62)      (0.22)   $10.27    3.92%  
Year ended  1997         (0.45)       --        (0.03)         --       (0.48)       0.38    $10.65    8.59%  
Year ended  1998         (0.44)       --        (0.05)         --       (0.49)       0.10    $10.75    5.71%  
Year ended  1999         (0.45)       --           --       (0.01)      (0.46)      (0.80)   $ 9.95   (3.26%) 
Year ended  2000         (0.47)       --           --          --       (0.47)       0.73    $10.68   12.40%  
Period ended  2001 (2)   (0.26)       --        (0.05)         --       (0.31)       0.07    $10.75    3.66%  
--------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMTX                                                            
Year ended  1996         (0.46)       --           --          --       (0.46)      (0.10)   $10.42    3.41%  
Year ended  1997         (0.45)       --           --          --       (0.45)       0.26    $10.68    7.07%  
Year ended  1998         (0.45)       --        (0.03)         --       (0.48)       0.08    $10.76    5.37%  
Year ended  1999         (0.44)       --           --       (0.01)      (0.45)      (0.56)   $10.20   (1.01%) 
Year ended  2000         (0.46)       --           --          --       (0.46)       0.43    $10.63    8.99%  
Period ended  2001 (2)   (0.26)       --        (0.02)         --       (0.28)       0.15    $10.78    4.06%  
--------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMIX                                                          
Year ended  1996         (0.39)       --           --          --       (0.39)      (0.04)   $10.08    3.51%  
Year ended  1997         (0.41)       --           --          --       (0.41)       0.13    $10.21    5.52%  
Year ended  1998         (0.41)       --        (0.01)         --       (0.42)       0.06    $10.27    4.75%  
Year ended  1999         (0.41)       --           --          --       (0.41)      (0.34)   $ 9.93    0.67%  
Year ended  2000         (0.43)       --        (0.01)         --       (0.44)       0.17    $10.10    6.31%  
Period ended  2001 (2)   (0.24)       --        (0.01)         --       (0.25)       0.15    $10.25    4.01%  
--------------------------------------------------------------------------------------------------------------


                                         Ratios/Supplemental Data                                             
                         ----------------------------------------------------------                           
                                                  Ratio of                                                    
                                                    Net                                                       
                         Net Assets,  Ratio of  Investment  Ratio of                                          
                            End of     Expenses  Income to   Expenses   Portfolio                             
                            Period    to Average  Average   to Average  Turnover                              
                            (000's)   Net Assets Net Assets Net Assets* Rate (1)                              
-----------------------------------------------------------------------------------                           
                                                                                                              
TAX-FREE INCOME FUND -- Ticker Symbol: KNTIX                                                                  
Year ended  1996           $109,948      0.82%      4.38%      0.82%        40%                               
Year ended  1997           $116,652      0.79%      4.32%      0.80%        16%                               
Year ended  1998           $128,232      0.81%      4.16%      0.82%        53%                               
Year ended  1999           $122,052      0.82%      4.32%      0.83%       109%                               
Year ended  2000           $133,184      0.78%      4.61%      0.79%       119%                               
Period ended  2001 (2)     $125,382      0.79%      4.21%      0.81%        89%                               
-----------------------------------------------------------------------------------                           
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMTX                                                            
Year ended  1996           $285,674      0.73%      4.34%      0.73%        35%                               
Year ended  1997           $275,641      0.72%      4.31%      0.73%        23%                               
Year ended  1998           $296,484      0.73%      4.22%      0.74%        40%                               
Year ended  1999           $302,948      0.73%      4.22%      0.74%        63%                               
Year ended  2000           $256,926      0.72%      4.43%      0.73%        59%                               
Period ended  2001 (2)     $237,929      0.74%      4.29%      0.74%        36%                               
-----------------------------------------------------------------------------------                           
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMIX                                                          
Year ended  1996           $152,623      0.70%      3.83%      0.70%        24%                               
Year ended  1997           $111,735      0.69%      4.04%      0.70%        13%                               
Year ended  1998           $117,957      0.69%      3.97%      0.70%        51%                               
Year ended  1999           $102,608      0.71%      3.98%      0.72%        14%                               
Year ended  2000           $ 87,926      0.68%      4.17%      0.69%        36%                               
Period ended  2001 (2)     $ 80,556      0.69%      4.00%      0.71%        19%                               
-----------------------------------------------------------------------------------                           

/\   As required, effective January 1, 2000, the Fund has adopted the         
provisions of the AICPA Audit and Accounting Guide for Investment   
     Companies and began accreting discounts on debt securities. The effect of
  this change for the period ended July 31, 2001 for the Tax-Free Income
    Fund, Intermediate Tax-Free Fund and Michigan Municipal Bond Fund was to
increase net investment income per share by $0.00, $0.00 and $0.00, 
   respectively, decrease net realized and unrealized gains and losses per
 share by ($0.00), ($0.00) and ($0.00), respectively, and increase the
     ratio of net investment income to average net assets from 4.20% to 4.21%,
  4.25% to 4.29% and 3.99% to 4.00%, respectively. Per share, ratios and
supplemental data for periods prior to January 1, 2000 have not been
restated to reflect this change in presentation.                    
*    During various periods, certain fees were voluntarily reduced. The ratios
shown do not include these voluntary fee reductions.                
(1)  Portfolio turnover is calculated on the basis of the Fund as a whole     
without distinguishing between the classes of shares issued.        
(2)  For the period from January 1, 2001 through July 31, 2001. The Fund      
changed its fiscal year end to July 31.                             

See Notes to Financial Statements.  

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FINANCIAL HIGHLIGHTS                                                          

TAX-FREE BOND FUNDS                                                           

INVESTMENT SHARES                                                             

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

                                                        [Enlarge/Download Table]

                               Increase (Decrease) in Net                                                      
                                  Assets Resulting from                                                        
                                       Operations                                                              
                               ---------------------------                                                     
                                           Net Realized and                                                    
                                              Unrealized            Net                                        
                     Net Asset              Gains (Losses)  Increase/(Decrease)                                
                      Value,       Net      on Investments     in Net Assets                                   
                     Beginning  Investment   and Futures      Resulting from                                   
                     of Period   Income/\     Contracts/\       Operations                                     
---------------------------------------------------------------------------------                              
                                                                                                               
TAX-FREE INCOME FUND -- Ticker  Symbol: KTFIX                                                                  
Year ended  1996      $10.52       0.41         (0.05)              0.36                                       
Year ended  1997      $10.29       0.42          0.42               0.84                                       
Year ended  1998      $10.67       0.42          0.15               0.57                                       
Year ended  1999      $10.77       0.42         (0.78)             (0.36)                                      
Year ended  2000      $ 9.98       0.44          0.73               1.17                                       
Period ended 2001(3)  $10.71       0.26          0.11               0.37                                       
---------------------------------------------------------------------------------                              
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMBX                                                             
Year ended  1996      $10.52       0.42         (0.09)              0.33                                       
Year ended  1997      $10.42       0.43          0.26               0.69                                       
Year ended  1998      $10.68       0.42          0.11               0.53                                       
Year ended  1999      $10.76       0.43         (0.56)             (0.13)                                      
Year ended  2000      $10.20       0.44          0.43               0.87                                       
Period ended 2001(3)  $10.63       0.25          0.16               0.41                                       
---------------------------------------------------------------------------------                              
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMVX                                                           
Year ended  1996      $10.11       0.38         (0.05)              0.33                                       
Year ended  1997      $10.07       0.39          0.14               0.53                                       
Year ended  1998      $10.20       0.39          0.07               0.46                                       
Year ended  1999      $10.26       0.39         (0.34)              0.05                                       
Year ended  2000      $ 9.92       0.41          0.18               0.59                                       
Period ended 2001(3)  $10.09       0.23          0.16               0.39                                       
---------------------------------------------------------------------------------                              


                            Less Dividends and Distributions from                                              
                     -------------------------------------------------------                                   

                                           Net Realized                                                        
                                 In Excess   Gains on   In Excess     Total        Net    Net Asset            
                        Net       of Net   Investments   of Net     Dividends   Change in  Value,              
                     Investment Investment and Futures  Realized       and      Net Asset  End of     Total    
                       Income     Income    Contracts     Gains   Distributions   Value    Period   Return (1) 
---------------------------------------------------------------------------------------------------------------
                                                                                                               
TAX-FREE INCOME FUND -- Ticker Symbol: KTFIX                                                                   
Year ended  1996       (0.43)        --       (0.12)      (0.04)      (0.59)      (0.23)   $10.29      3.53%   
Year ended  1997       (0.42)     (0.01)      (0.03)         --       (0.46)       0.38    $10.67      8.32%   
Year ended  1998       (0.42)        --       (0.05)         --       (0.47)       0.10    $10.77      5.43%   
Year ended  1999       (0.42)        --          --       (0.01)      (0.43)      (0.79)   $ 9.98     (3.40%)  
Year ended  2000       (0.44)        --          --          --       (0.44)       0.73    $10.71     11.97%   
Period ended 2001(3)   (0.25)        --       (0.05)         --       (0.30)       0.07    $10.78      3.58%   
---------------------------------------------------------------------------------------------------------------
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMBX                                                             
Year ended  1996       (0.41)     (0.02)         --          --       (0.43)      (0.10)   $10.42      3.17%   
Year ended  1997       (0.43)        --          --          --       (0.43)       0.26    $10.68      6.80%   
Year ended  1998       (0.42)        --       (0.03)         --       (0.45)       0.08    $10.76      5.09%   
Year ended  1999       (0.42)        --          --       (0.01)      (0.43)      (0.56)   $10.20     (1.27%)  
Year ended  2000       (0.44)        --          --          --       (0.44)       0.43    $10.63      8.72%   
Period ended 2001(3)   (0.24)        --       (0.02)         --       (0.26)       0.15    $10.78      3.91%   
---------------------------------------------------------------------------------------------------------------
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMVX                                                           
Year ended  1996       (0.35)     (0.02)         --          --       (0.37)      (0.04)   $10.07      3.36%   
Year ended  1997       (0.40)        --          --          --       (0.40)       0.13    $10.20      5.38%   
Year ended  1998       (0.39)        --       (0.01)         --       (0.40)       0.06    $10.26      4.60%   
Year ended  1999       (0.39)        --          --          --       (0.39)      (0.34)   $ 9.92      0.51%   
Year ended  2000       (0.41)        --       (0.01)         --       (0.42)       0.17    $10.09      6.05%   
Period ended 2001(3)   (0.23)        --       (0.01)         --       (0.24)       0.15    $10.24      4.02%   
---------------------------------------------------------------------------------------------------------------


                                     Ratios/Supplemental Data                                                  
                      --------------------------------------------------------                                 
                                              Ratio of                                                         
                                                 Net                                                           
                       Net Assets,  Ratio of  Investment  Ratio of                                             
                         End of     Expenses  Income to   Expenses   Portfolio                                 
                         Period    to Average  Average   to Average  Turnover                                  
                         (000's)   Net Assets Net Assets Net Assets* Rate (2)                                  
-------------------------------------------------------------------------------                                
                                                                                                               
TAX-FREE INCOME FUND -- Ticker Symbol: KTFIX                                                                   
Year ended  1996         $  936       1.07%      4.14%      1.07%        40%                                   
Year ended  1997         $1,712       1.04%      4.05%      1.05%        16%                                   
Year ended  1998         $1,938       1.06%      3.91%      1.07%        53%                                   
Year ended  1999         $1,554       1.07%      4.05%      1.08%       109%                                   
Year ended  2000         $1,479       1.03%      4.36%      1.04%       119%                                   
Period ended 2001(3)     $1,114       1.04%      3.98%      1.06%        89%                                   
-------------------------------------------------------------------------------                                
INTERMEDIATE TAX-FREE FUND -- Ticker Symbol: KNMBX                                                             
Year ended  1996         $3,368       0.98%      4.09%      0.98%        35%                                   
Year ended  1997         $3,534       0.97%      4.06%      0.98%        23%                                   
Year ended  1998         $4,038       0.98%      3.97%      0.99%        40%                                   
Year ended  1999         $3,745       0.98%      3.97%      0.99%        63%                                   
Year ended  2000         $2,989       0.97%      4.18%      0.98%        59%                                   
Period ended 2001(3)     $5,204       0.99%      3.96%      1.00%        36%                                   
-------------------------------------------------------------------------------                                
MICHIGAN MUNICIPAL BOND FUND -- Ticker Symbol: KNMVX                                                           
Year ended  1996         $2,422       0.85%      3.68%      0.95%        24%                                   
Year ended  1997         $4,413       0.84%      3.88%      0.95%        13%                                   
Year ended  1998         $5,946       0.84%      3.82%      0.95%        51%                                   
Year ended  1999         $4,378       0.86%      3.83%      0.97%        14%                                   
Year ended  2000         $3,629       0.83%      4.01%      0.94%        36%                                   
Period ended 2001(3)     $3,569       0.84%      3.85%      0.96%        19%                                   
-------------------------------------------------------------------------------                                

/\  As required, effective January 1, 2000, the Fund has adopted the          
provisions of the AICPA Audit and Accounting Guide for Investment     
   Companies and began accreting discounts on debt securities. The effect of
this change for the period ended July 31, 2001 for the Tax-Free Income
  Fund, Intermediate Tax-Free Fund and Michigan Municipal Bond Fund was to
increase net investment income per share by $0.00, $0.00 and $0.00,   
 respectively, decrease net realized and unrealized gains and losses per
share by $(0.00), $(0.00) and $(0.00), respectively, and increase the 
   ratio of net investment income to average net assets from 3.97% to 3.98%,
3.92% to 3.96% and 3.84% to 3.85%, respectively. Per share, ratios and
supplemental data for periods prior to January 1, 2000 have not been  
restated to reflect this change in presentation.                      
*   During various periods, certain fees were voluntarily reduced. The        
ratios shown do not include these voluntary fee reductions.           
(1) Calculation does not include sales charge. Effective May 1, 1997, the     
Investment Shares were not assessed a sales charge.                   
(2) Portfolio turnover is calculated on the basis of the Fund as a whole      
without distinguishing between the classes of shares issued.          
(3) For the period from January 1, 2001 through July 31, 2001. The Fund       
changed its fiscal year end to July 31.                               

See Notes to Financial Statements.  

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FINANCIAL HIGHLIGHTS                                                          

MONEY MARKET FUNDS                                                            

INSTITUTIONAL SHARES                                                          

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

                                                        [Enlarge/Download Table]

                                                                                                Ratios/Supplemental Data           
                                                                                      ---------------------------------------------
                                                                                                              Ratio of             
                                               Less                                                             Net                
                       Net Asset            Dividends     Net    Net Asset            Net Assets,  Ratio of  Investment  Ratio of  
                        Value,      Net      from Net  Change in  Value,                End of     Expenses  Income to   Expenses  
                       Beginning Investment Investment Net Asset  End of   Total        Period    to Average  Average   to Average 
                       of Period   Income     Income     Value    Period   Return       (000's)   Net Assets Net Assets Net Assets*
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   
 MONEY MARKET FUND -- Ticker Symbol: KIMXX                                                                                         
 Year ended    1996     $1.000     0.050      (0.050)      --     $1.000    5.06%      $483,919      0.52%      4.95%      0.62%   
 Year ended    1997     $1.000     0.051      (0.051)      --     $1.000    5.23%      $474,378      0.52%      5.11%      0.62%   
 Year ended    1998     $1.000     0.050      (0.050)      --     $1.000    5.13%      $693,399      0.55%      5.00%      0.64%   
 Year ended    1999     $1.000     0.047      (0.047)      --     $1.000    4.80%      $654,771      0.54%      4.70%      0.63%   
 Year ended    2000     $1.000     0.059      (0.059)      --     $1.000    6.04%      $727,435      0.54%      5.89%      0.62%   
 Period ended  2001(1)  $1.000     0.027      (0.027)      --     $1.000    2.71%      $777,248      0.55%      4.61%      0.63%   
-----------------------------------------------------------------------------------------------------------------------------------
 GOVERNMENT MONEY MARKET FUND -- Ticker Symbol: KGIXX                                                                              
 Period ended  1997(2)  $1.000     0.031      (0.031)      --     $1.000    3.10%/\/\  $ 94,624      0.35%/\    5.23%/\    0.69%/\ 
 Year ended    1998     $1.000     0.051      (0.051)      --     $1.000    5.17%      $166,922      0.38%      5.03%      0.69%   
 Year ended    1999     $1.000     0.047      (0.047)      --     $1.000    4.81%      $215,401      0.37%      4.73%      0.65%   
 Year ended    2000     $1.000     0.059      (0.059)      --     $1.000    6.03%      $309,711      0.39%      5.92%      0.63%   
 Period ended  2001(1)  $1.000     0.027      (0.027)      --     $1.000    2.71%      $410,278      0.40%      4.56%      0.63%   
-----------------------------------------------------------------------------------------------------------------------------------
 MICHIGAN MUNICIPAL MONEY MARKET FUND -- Ticker Symbol: KMIXX                                                                      
 Year ended    1996     $1.000     0.030      (0.030)      --     $1.000    3.11%      $155,424      0.54%      3.06%      0.64%   
 Year ended    1997     $1.000     0.033      (0.033)      --     $1.000    3.31%      $211,682      0.52%      3.27%      0.63%   
 Year ended    1998     $1.000     0.030      (0.030)      --     $1.000    3.06%      $323,272      0.54%      3.00%      0.64%   
 Year ended    1999     $1.000     0.028      (0.028)      --     $1.000    2.86%      $292,619      0.53%      2.82%      0.63%   
 Year ended    2000     $1.000     0.037      (0.037)      --     $1.000    3.73%      $295,219      0.53%      3.67%      0.62%   
 Period ended  2001(1)  $1.000     0.017      (0.017)      --     $1.000    1.71%      $317,543      0.54%      2.93%      0.63%   
-----------------------------------------------------------------------------------------------------------------------------------

 *     During various periods, certain fees were voluntarily reduced. The ratios
shown do not include these voluntary fee reductions.              
/\    Annualized.                                                             
/\/\  Not Annualized.                                                         
(1)   For the period from January 1, 2001 through July 31, 2001. The Fund     
changed its fiscal year end to July 31.                           
(2)   The Institutional Class of the Government Money Market Fund commenced   
operations on June 2, 1997.                                       

See Notes to Financial Statements.

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FINANCIAL HIGHLIGHTS                                                          

MONEY MARKET FUNDS                                                            

INVESTMENT SHARES                                                             

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

                                                        [Enlarge/Download Table]

                                                                                                      Ratios/Supplemental Data     
                                                                                                  ---------------------------------
                                                                                                              Ratio of             
                                               Less                                                             Net                
                       Net Asset            Dividends     Net    Net Asset            Net Assets,  Ratio of  Investment  Ratio of  
                        Value,      Net      from Net  Change in  Value,                End of     Expenses  Income to   Expenses  
                       Beginning Investment Investment Net Asset  End of   Total        Period    to Average  Average   to Average 
                       of Period   Income     Income     Value    Period   Return       (000's)   Net Assets Net Assets Net Assets*
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   
 MONEY MARKET FUND -- Ticker Symbol: N/A                                                                                           
 Year ended    1996     $1.000     0.050      (0.050)      --     $1.000    5.06%       $   804      0.52%      4.94%      0.62%   
 Year ended    1997     $1.000     0.051      (0.051)      --     $1.000    5.23%       $ 1,179      0.52%      5.11%      0.62%   
 Year ended    1998     $1.000     0.050      (0.050)      --     $1.000    5.13%       $ 3,728      0.55%      5.00%      0.64%   
 Year ended    1999     $1.000     0.047      (0.047)      --     $1.000    4.80%       $ 2,141      0.55%      4.71%      0.63%   
 Year ended    2000     $1.000     0.058      (0.058)      --     $1.000    6.00%       $ 2,949      0.58%      5.82%      0.67%   
 Period ended  2001(1)  $1.000     0.025      (0.025)      --     $1.000    2.56%       $18,796      0.80%      4.17%      0.88%   
-----------------------------------------------------------------------------------------------------------------------------------
 GOVERNMENT MONEY MARKET FUND -- Ticker Symbol: N/A                                                                                
 Period ended  1997(2)  $1.000     0.030      (0.030)      --     $1.000    3.06%/\/\   $     2      0.43%/\    5.17%/\    0.77%/\ 
 Year ended    1998     $1.000     0.051      (0.051)      --     $1.000    5.17%       $    93      0.38%      4.92%      0.69%   
 Year ended    1999     $1.000     0.047      (0.047)      --     $1.000    4.81%       $   120      0.37%      4.71%      0.65%   
 Year ended    2000     $1.000     0.058      (0.058)      --     $1.000    5.99%       $ 1,885      0.54%      5.88%      0.78%   
 Period ended  2001(1)  $1.000     0.025      (0.025)      --     $1.000    2.56%       $35,738      0.65%      4.08%      0.88%   
-----------------------------------------------------------------------------------------------------------------------------------
 MICHIGAN MUNICIPAL MONEY MARKET FUND -- Ticker Symbol: N/A                                                                        
 Year ended    1996     $1.000     0.030      (0.030)      --     $1.000    3.11%       $   782      0.54%      3.06%      0.64%   
 Year ended    1997     $1.000     0.033      (0.033)      --     $1.000    3.31%       $   289      0.52%      3.22%      0.63%   
 Year ended    1998     $1.000     0.030      (0.030)      --     $1.000    3.06%       $   346      0.54%      3.02%      0.64%   
 Year ended    1999     $1.000     0.028      (0.028)      --     $1.000    2.86%       $   658      0.53%      2.82%      0.63%   
 Year ended    2000     $1.000     0.036      (0.036)      --     $1.000    3.70%       $   160      0.54%      3.44%      0.63%   
 Period ended  2001(1)  $1.000     0.016      (0.016)      --     $1.000    1.57%       $   215      0.79%      2.67%      0.88%   
-----------------------------------------------------------------------------------------------------------------------------------

*      During various periods, certain fees were voluntarily reduced. The     
ratios shown do not include these voluntary fee reductions.     
/\     Annualized.                                                            
/\/\   Not Annualized.                                                        
(1)    For the period from January 1, 2001 through July 31, 2001. The Fund    
changed its fiscal year end to July 31.                         
(2)    The Investment Class of the Government Money Market Fund commenced     
operations on June 2, 1997.                                     

See Notes to Financial Statements.

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Report of Independent Public Accountants  

To the Shareholders and Board of Trustees of the Kent Funds:                    

We have audited the accompanying statements of assets and liabilities,        
including the schedules of portfolio investments, of the Kent Funds, compris-   
ing the Growth and Income Fund, Index Equity Fund, Large Company Growth Fund,   
Small Company Growth Fund, International Growth Fund, Income Fund, Intermedi-   
ate Bond Fund, Short Term Bond Fund, Tax-Free Income Fund, Intermediate Tax-    
Free Fund, Michigan Municipal Bond Fund, Money Market Fund, Government Money    
Market Fund and Michigan Municipal Money Market Fund, as of July 31, 2001, and  
the related statements of operations, statements of changes in net assets and   
the financial highlights for the period then ended. These financial statements  
and financial highlights are the responsibility of the Funds' management. Our   
responsibility is to express an opinion on these financial statements and       
financial highlights based on our audit. The statements of operations for the   
year ended December 31, 2000 and the statements of changes in net assets for    
the years ended December 31, 2000 and 1999, and the financial highlights for    
each of the five years in the period ended December 31, 2000 were audited by    
other auditors whose report thereon dated February 23, 2001, expressed an       
unqualified opinion on those financial statements and financial highlights.     

We conducted our audit in accordance with auditing standards generally        
accepted in the United States. Those standards require that we plan and per-    
form the audit to obtain reasonable assurance about whether the financial       
statements and financial highlights are free of material misstatement. An       
audit includes examining, on a test basis, evidence supporting the amounts and  
disclosures in the financial statements. Our procedures included confirmation   
of securities owned as of July 31, 2001, by correspondence with the custodian   
and brokers or by other appropriate auditing procedures where replies from      
brokers were not received. An audit also includes assessing the accounting      
principles used and significant estimates made by management, as well as eval-  
uating the overall financial statement presentation. We believe that our audit  
provides a reasonable basis for our opinion.                                    

In our opinion, the financial statements and financial highlights referred to 
above present fairly, in all material respects, the financial position of each  
of the portfolios constituting the Kent Funds as of July 31, 2001, the results  
of their operations, the changes in their net assets and their financial high-  
lights for the period then ended in conformity with accounting principles gen-  
erally accepted in the United States.                                           

                         ARTHUR ANDERSEN LLP

Chicago, Illinois                                                               
September 4, 2001                                                               

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ADDITIONAL INFORMATION  

Shareholder Vote (unaudited):                                                   

Information regarding voting at the July 27, 2001 Special shareholder meeting 
follows. As a result of this voting, the Kent Funds are expected to merge with  
the Fifth Third Funds on or about October 29, 2001.                             

Resolution 1:                                                                   

To consider and act upon an Agreement and Plan of Reorganization ("Reorgani-  
zation Agreement") pursuant to which each Kent Fund will transfer all of its    
assets to the corresponding FifthThird Fund, as listed below, in exchange for   
Investment A, Institutional, and Service shares (collectively, "Shares") of     
such Fifth Third Fund and the assumption by such Fifth Third Fund of all of     
the liabilities of such Kent Fund, followed by the liquidation of such Kent     
Fund, and the distribution of Shares of such Fifth Third Fund to the share-     
holders of such Kent Fund, and by the deregistration of the Kent Funds as an    
investment company under the Investment Company Act of 1940 and the termina-    
tion of the Kent Funds as a business trust under Massachusetts law.             

With respect to Resolution 1, the following numbers of shares were voted in   
favor of the proposal, against the proposal, abstained from voting, and repre-  
sented broker non-votes:                                                        

                                                                [Download Table]

                                                                      Broker  
Fund                                   In Favor   Against Abstained Non-votes 
----                                   --------   ------- --------- --------- 
                                                                              
Kent Growth and Income Fund..........  36,938,298  30,337    27,220    980,299
Kent Large Company Growth Fund.......  29,233,487   4,758       786     26,506
Kent Small Company Growth Fund.......  41,658,830  17,920    12,690    316,009
Kent International Growth Fund.......  35,259,142  15,032     7,172  1,030,661
Kent Index Equity Fund...............  35,800,613  21,350    17,373    606,650
Kent Short Term Bond Fund............  21,966,279   5,311    10,652    167,315
Kent Intermediate Bond Fund..........  66,629,267  11,446    23,479    490,986
Kent Income Fund.....................  27,101,058  11,933    11,542    184,459
Kent Intermediate Tax-Free Fund......  22,649,830   1,106     9,944    209,471
Kent Tax-Free Income Fund............  11,649,432     832       167     21,502
Kent Michigan Municipal Bond Fund....   8,189,773     907     6,105     91,675
Kent Money Market Fund............... 555,687,329 226,038 1,113,393 16,269,372
Kent Government Money Market Fund.... 248,282,649   1,318        -- 99,144,481
Kent Michigan Municipal Money Market                                          
 Fund................................ 215,162,665 450,644   453,236  7,002,434

Resolution 2:                                                                   

To consider and act upon a new investment advisory agreement ("New Investment 
Advisory Agreement") between the Kent Funds and Fifth Third Asset Management    
Inc., the terms of which are identical in all material respects (with the       
exception of the investment advisor name) to the investment advisory agreement  
previously in effect between the Kent Funds and Lyon Street Asset Management    
Company. The New Investment Advisory Agreement was approved by the Board of     
Trustees of the Kent Funds on April 12, 2001.                                   

With respect to Resolution 2, the following numbers of shares were voted in   
favor of the proposal, against the proposal, abstained from voting, and repre-  
sented broker non-votes:                                                        

                                                                [Download Table]

                                                                       Broker  
Fund                                   In Favor    Against  Abstained Non-votes
----                                   --------    -------  --------- ---------
                                                                               
Kent Growth and Income Fund.........   37,880,787    32,022    63,345        --
Kent Large Company Growth Fund......   29,204,969     4,937    55,631        --
Kent Small Company Growth Fund......   41,934,982    19,215    51,252        --
Kent International Growth Fund......   36,254,083    15,881    42,043        --
Kent Index Equity Fund..............   36,400,197    20,596    25,193        --
Kent Short Term Bond Fund...........   22,126,041     5,311    18,205        --
Kent Intermediate Bond Fund.........   67,004,046    12,002   139,130        --
Kent Income Fund....................   27,282,094    12,452    14,446        --
Kent Intermediate Tax-Free Fund.....   22,857,904     2,504     9,943        --
Kent Tax-Free Income Fund...........   11,670,934       832       167        --
Kent Michigan Municipal Bond Fund...    8,281,448       907     6,105        --
Kent Money Market Fund..............  572,056,191   126,336 1,113,605        --
Kent Government Money Market Fund...  345,323,852 1,350,896   753,700        --
Kent Michigan Municipal Money Market                                           
 Fund...............................  222,039,530   453,283   576,166        --

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[LOGO] KENT FUNDS                                                               

P.O. Box 182201                                                                 
Columbus, Ohio 43218-2201                                                       

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘N-30D’ Filing		Date		First		Last			Other Filings
		12/31/01		97		122
		10/29/01		134
		10/26/01		2
Filed on:		9/25/01							N-30D,  NSAR-B
		9/4/01		133
For Period End:		7/31/01		1		133			24F-2NT,  N-30D
		7/27/01		2		134
		4/30/01		114
		4/12/01		114		134
		4/2/01		114
		2/23/01		133
		2/13/01		114
		1/1/01		97		132
		12/31/00		133					24F-2NT,  N-30D,  NSAR-B
		12/30/00		23
		8/1/00		23		27
		1/1/00		127		130
		12/31/99		105		133			24F-2NT,  N-30D,  NSAR-B
		10/19/99		105		126
		6/2/97		131		132
		5/1/97		126		130			485BPOS
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