[Graphic]
West Virginia
Municipal Bond
Fund
SEMI-ANNUAL REPORT
AND SUPPLEMENT TO
PROSPECTUS
MARCH 12, 1997
[Graphic]
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
(A PORTFOLIO OF WESMARK FUNDS)
SEMI-ANNUAL REPORT AND SUPPLEMENT TO PROSPECTUS DATED MARCH 12, 1997
The following information is a supplement to your prospectus. We're providing it
to keep you up to date and comply with regulations that require mutual fund
companies to update shareholders concerning changes in prospectuses.
We suggest that you keep this information for your records.
A. Please insert this "Financial Highlights" table as page 2 of the
Prospectus.
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
JULY 31,
1997(A)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.13
Net realized and unrealized gain (loss) on investments 0.24
Total from investment operations 0.37
LESS DISTRIBUTIONS
Distributions from net investment income (0.13)
NET ASSET VALUE, END OF PERIOD $10.24
TOTAL RETURN(B) 3.71%
RATIOS TO AVERAGE NET ASSETS
Expenses 0.74%*
Net investment income 4.31%*
Expense waiver/reimbursement(c) 0.30%*
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $64,694
Portfolio turnover 2%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to July 31, 1997.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.
(See Notes which are an integral part of the Financial Statements)
B. Please insert the following two sentences to the end of the section
entitled "Portfolio Turnover" on page 7 of the Prospectus:
"For the period from April 14, 1997 (date of initial public investment) to July
31, 1997, the Fund's portfolio turnover rate was 2%. The portfolio turnover rate
is representative of only four months of investment activity."
C. Please delete references to Federated Services Company under the section
"Administration of the Fund" on page 11 of the Prospectus and replace with
Federated Administrative Services.
D. Please replace the current disclosure under the section entitled
"Certificates and Confirmations" on page 13 of the Prospectus with the
following:
"Shareholders will receive detailed confirmations of transactions. In
addition, shareholders will receive periodic statements reporting all
account activity, including dividends paid. The Fund will not issue share
certificates."
E. Please delete the first two sentences in the last paragraph under the
section "Performance Information" on page 19 of the Prospectus and replace
with the following:
"The Fund's total return for the one-year period ended July 31, 1997, was 6.08%.
The Fund's average annual total return for the five-year period ended July 31,
1997, and for the period from December 30, 1990 (date of commencement of
operations of the common trust fund) to July 31, 1997, was 4.94% and 5.60%,
respectively."
F. Please insert the following financial statements as page 20 following the
section entitled "Performance Information" on page 19 of the Prospectus:
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--96.6%
WEST VIRGINIA--96.6%
$ 195,000 Beckley, WV, Nursing Facility Refunding Revenue Bonds,
5.10% (Beckley Health Care Corp. Project)/(Nationsbank of
Texas, N.A. LOC), 9/1/2004 NR $ 198,938
205,000 Beckley, WV, Nursing Facility Refunding Revenue Bonds,
5.20% (Beckley Health Care Corp. Project)/(Nationsbank of
Texas, N.A. LOC), 9/1/2005 NR 209,605
215,000 Beckley, WV, Nursing Facility Refunding Revenue Bonds,
5.30% (Beckley Health Care Corp. Project)/(Nationsbank of
Texas, N.A. LOC), 9/1/2006 NR 220,284
230,000 Beckley, WV, Nursing Facility Revenue Refunding Bonds,
5.40% (Beckley Health Care Corp. Project)/(Nationsbank of
Texas, N.A. LOC), 9/1/2007 NR 236,289
500,000 Berkeley County, WV Board of Education, GO UT, 4.50%
(FGIC INS)/(Original Issue Yield: 5.30%), 6/1/2009 AAA 489,197
500,000 Berkeley County, WV Board of Education, GO UT Refunding
Bonds, 5.25%, 4/1/1998 A+ 504,766
500,000 Berkeley County, WV Board of Education, GO UT Refunding
Bonds, 5.35%, 4/1/1999 A+ 510,345
360,000 Berkeley County, WV Board of Education, GO UT Refunding
Bonds, 5.45%, 4/1/2000 A+ 371,127
1,030,000 Berkeley County, WV Board of Education, GO UT, 5.75%
(FGIC INS), 6/1/2003 AAA 1,104,616
400,000 Berkeley County, WV Board of Education, GO UT, 7.20%
(BIG INS), 4/1/1999 AAA 420,806
100,000 Brooke County, WV Board of Education, GO UT Refunding
Bonds, 8.625% (AMBAC INS), 8/1/2000 AAA 112,276
100,000 Brooke County, WV Board of Education, GO UT Refunding
Bonds, 8.75% (AMBAC INS), 8/1/2001 AAA 116,554
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 1,350,000 Cabell County, WV Board of Education, GO UT, 6.50% (MBIA
INS), 5/1/2003 AAA $ 1,496,868
500,000 Cabell County, WV Board of Education, GO UT, 4.60%
(Original Issue Yield: 4.70%), 5/1/2003 A+ 505,000
500,000 Cabell County, WV Board of Education, GO UT, 6.00% (MBIA
INS), 5/1/2006 AAA 552,570
100,000 Cable, Putnam & Wayne County's, WV, Single Family
Residence Mortgage Revenue Bonds, 7.375% (FGIC INS),
4/1/2010 AAA 114,812
360,000 Charles Town, WV, Residential Mortgage Revenue Bonds,
6.20%, 3/1/2011 A1 373,402
355,000 Charleston, WV, GO UT, 7.20%, 10/1/2003 A 404,651
245,000 Clarksburg, WV, Revenue Refunding Bonds, 5.10% (Asset
GTD)/(Original Issue Yield: 5.15%), 9/1/1998 AA 248,576
450,000 Clarksburg, WV, Revenue Refunding Bonds, 5.25% (Asset
GTD)/(Original Issue Yield: 5.30%), 9/1/1999 AA 461,754
390,000 Fayette County, WV, Pollution Control Revenue Bonds, 5.20%
(Union Carbide Corp.), 2/1/1998 BBB 392,698
250,000 Harrison County, WV Board of Education, GO UT, 6.20%
(FGIC INS), 5/1/2000 AAA 264,036
500,000 Harrison County, WV Board of Education, GO UT, 6.40%
(FGIC INS)/(Original Issue Yield: 6.45%), 5/1/2006 AAA 566,497
500,000 Harrison County, WV Building Commission, Revenue
Refunding Bonds, 4.50% (United Hospital Center)/(AMBAC
INS), 4/1/2001 AAA 504,175
215,000 Harrison County, WV County Commission, Special Obligation
Refunding Bonds, 5.60% (Original Issue Yield: 5.65%),
5/15/1998 AAA 218,319
410,000 Harrison County, WV County Commission, Special Obligation
Refunding Bonds, 6.35% (Original Issue Yield: 6.45%),
5/15/2004 AAA 448,150
250,000 Jefferson County, WV Board of Education, School
Improvement Bonds, 6.85% (FGIC INS), 7/1/2001 AAA 274,158
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 750,000 Kanawha County, WV Commercial Development, Revenue
Refunding Bonds, 6.50% (May Department Stores Co.),
6/1/2003 A $ 829,794
2,025,000 Kanawha County, WV, Pollution Control Revenue Bonds,
7.35% (Union Carbide Corp.), 8/1/2004 Baa2 2,286,602
500,000 Lewis County, WV, Revenue Bonds, 10.375% (Crestview
Manor Project), 8/1/2019 NR 574,601
285,000 Logan County, WV, Revenue Bonds, 8.00% (Logan County
Health Care Center Limited Partnership Project), 12/1/2009 NR 358,445
400,000 Marion County, WV PCR, Revenue Refunding Bonds, 6.875%
(Monongahela Power Co.), 4/1/1998 AA- 407,980
100,000 Marion County, WV Single Family Mortgage, Revenue Bonds,
7.20% (FGIC INS), 8/1/2001 AAA 110,014
200,000 Ohio County, WV Board of Education, GO UT, 6.30%, 6/1/2001 A+ 213,983
475,000 Ohio County, WV Board of Education, GO UT, 7.00%, 6/1/2002 A+ 527,989
500,000 Ohio County, WV Board of Education, GO UT, 7.00%, 6/1/2003 A+ 564,285
530,000 Ohio County, WV Board of Education, GO UT, 7.00%, 6/1/2004 A+ 606,154
250,000 Ohio County, WV Building Commission, Revenue Refunding
Bonds, 9.50% (Ohio Valley Medical Center)/(Original Issue
Yield: 9.615%), 1/1/2005 NR 252,464
500,000 Parkersburg, WV Waterworks & Sewer Systems, Revenue
Refunding Bonds, 4.75% (FSA INS)/(Original Issue Yield:
4.80%), 3/1/2002 AAA 509,461
400,000 Parkersburg, WV Waterworks & Sewer Systems, Revenue
Refunding Bonds, 4.85% (FSA INS)/(Original Issue Yield:
4.90%), 3/1/2003 AAA 409,406
500,000 Pleasants County, WV, Pollution Control Revenue Bonds,
6.30% (Potomac Edison Co.), 11/1/2007 A 500,538
2,500,000 Pleasants County, WV, Pollution Control Revenue Bonds,
6.375% (Monongahela Power Co.)/(Original Issue Yield:
6.413%), 11/1/2007 A 2,502,827
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 500,000 Pleasants County, WV PCR, Refunding Revenue Bond, 6.15%
(West Penn Power Co.)/(AMBAC INS), 5/1/2015 AAA $ 534,343
475,000 Pleasants County, WV PCR, Refunding Revenue Bonds,
6.15% (Potomac Edison Co.)/(MBIA INS), 5/1/2015 AAA 513,656
475,000 Raleigh County, WV, Refunding Revenue Bonds, 5.50%,
6/1/2006 NR 491,071
120,000 South Charleston, WV, GO UT Bonds, 5.75%, 9/1/1998 Baa1 122,315
480,000 South Charleston, WV, Refunding Revenue Bonds, 4.70%
(MBIA INS), 10/1/2001 AAA 486,677
1,000,000 South Charleston, WV, Refunding Revenue Bonds, 7.625%
(Union Carbide Corp.), 8/1/2005 BBB 1,181,871
250,000 South Charleston, WV, Revenue Bonds, 3.85%, 3/1/1999 Baa 248,778
200,000 South Charleston, WV, Revenue Bonds, 3.85%, 3/1/2000 Baa 195,476
415,000 Taylor County, WV, GO UT Bonds, 8.40% (Original Issue Yield:
8.45%), 5/1/2001 NR 475,316
100,000 Upshur County, WV Charleston School District, 6.50%,
3/1/1998 NR 101,487
500,000 Wayne County, WV Board of Education, GO UT Bonds, 4.40%,
6/1/1999 A+ 503,125
655,000 Wayne County, WV Board of Education, GO UT Bonds, 4.50%,
6/1/2000 A+ 659,989
175,000 Weirton, WV Municipal Hospital Building, Refunding
Revenue Bonds, 5.75% (Weirton Medical Center Inc.)/
(AMBAC INS)/(Original Issue Yield: 6.00%), 12/1/2003 AAA 183,175
540,000 Weirton, WV Municipal Hospital Building, Revenue Bonds,
5.40% (Weirton Medical Center Inc.)/(AMBAC INS)/(Original
Issue Yield: 5.55%), 12/1/2000 AAA 560,438
675,000 Weirton, WV Municipal Hospital Building, Revenue Bonds,
5.75% (Weirton Medical Center Inc.)/(AMBAC INS)/(Original
Issue Yield: 6.05%), 12/1/2004 AAA 707,763
700,000 West Virgina State College, Revenue Bonds, 5.25% (AMBAC
INS)/(Original Issue Yield: 5.40%), 4/1/2000 AAA 720,276
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 800,000 West Virgina State College, Revenue Bonds, 5.50% (AMBAC
INS)/(Original Issue Yield: 5.60%), 4/1/2001 AAA $ 833,847
1,000,000 West Virgina State College, Revenue Bonds, 5.75% (AMBAC
INS)/(Original Issue Yield: 5.85%), 4/1/2003 AAA 1,066,991
200,000 West Virgina State College, Revenue Bonds, 5.75% (AMBAC
INS)/(Original Issue Yield: 5.95%), 4/1/2004 AAA 215,440
200,000 West Virginia HFA, Revenue Bonds (Series A), 5.60% (Cabell
Huntington Hospital)/(AMBAC INS)/(Original Issue Yield:
5.75%), 1/1/2005 AAA 213,995
480,000 West Virginia HFA, Revenue Bonds, 4.50% (Charleston Area
Medical Center)/(MBIA INS)/(Original Issue Yield: 4.70%),
9/1/2001 AAA 483,008
400,000 West Virginia HFA, Revenue Bonds, 4.60% (West Virginia
University Hospital Inc.)/(MBIA INS)/(Original Issue Yield:
4.75%), 6/1/2002 AAA 402,907
1,000,000 West Virginia HFA, Revenue Bonds, 4.70% (Charleston Area
Medical Center)/(MBIA INS)/(Original Issue Yield: 4.80%),
9/1/2002 AAA 1,012,587
300,000 West Virginia HFA, Revenue Bonds, 4.70% (FSA LOC),
8/1/2006 Aaa 300,218
700,000 West Virginia HFA, Revenue Bonds, 4.90% (West Virginia
University Hospital Inc.)/(MBIA INS)/(Original Issue Yield:
5.00%), 6/1/2004 AAA 720,838
1,650,000 West Virginia HFA, Revenue Bonds, 5.00% (Charleston Area
Medical Center)/(MBIA INS)/(Original Issue Yield: 5.10%),
9/1/2005 AAA 1,710,986
220,000 West Virginia HFA, Revenue Bonds, 5.00% (West Virginia
University Hospital Inc.)/(MBIA INS)/(Original Issue Yield:
5.10%), 6/1/2005 AAA 227,474
220,000 West Virginia HFA, Revenue Bonds, 5.35% (Logan General
Hospital), 7/1/1999 BBB- 223,954
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 1,750,000 West Virginia HFA, Revenue Bonds, 5.75% (Charleston Area
Medical Center)/(MBIA INS)/(Original Issue Yield: 5.98%),
9/1/2013 AAA $ 1,841,541
500,000 West Virginia HFA, Revenue Bonds, 7.875% (Cabell Hospital)/
(Original Issue Yield: 8.007%), 1/1/1999 (@102) NR 535,894
1,500,000 West Virginia HFA, Revenue Refunding Bonds, 4.75%
(Department of Health & Human Resources)/(FSA INS)/
(Original Issue Yield: 4.80%), 8/1/2008 Aaa 1,501,182
195,000 West Virginia Housing Development Fund, Refunding
Revenue Bonds, 4.90%, 5/1/2004 AAA 195,875
165,000 West Virginia Housing Development Fund, Refunding
Revenue Bonds, 5.15%, 5/1/2006 AAA 167,074
285,000 West Virginia Housing Development Fund, Refunding
Revenue Bonds, 5.35%, 5/1/2008 AAA 290,344
275,000 West Virginia Housing Development Fund, Refunding
Revenue Bonds, 6.70%, 5/1/2009 AAA 294,426
735,000 West Virginia Housing Development Fund, Revenue Bonds,
5.35%, 11/1/2010 AAA 742,117
500,000 West Virginia School Building Authority, Refunding Revenue
Bonds, 4.80% (AMBAC INS)/(Original Issue Yield: 4.85%),
7/1/2004 AAA 510,900
3,720,000 West Virginia School Building Authority, Revenue Bonds,
5.625% (MBIA INS)/(Original Issue Yield: 5.90%), 7/1/2003 AAA 3,957,991
180,000 West Virginia School Building Authority, Revenue Bonds,
5.70% (MBIA INS)/(Original Issue Yield: 5.75%), 7/1/2000 AAA 187,885
150,000 West Virginia School Building Authority, Revenue Bonds,
5.80% (MBIA INS)/(Original Issue Yield: 5.90%), 7/1/2001 AAA 158,468
855,000 West Virginia School Building Authority, Revenue Bonds,
6.25% (MBIA INS), 7/1/2001 AAA 917,019
100,000 West Virginia School Building Authority, Revenue Bonds,
6.75% (MBIA INS)/(Original Issue Yield: 7.00%), 7/1/2004 AAA 113,942
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 1,300,000 West Virginia School Building Authority, Revenue Bonds,
6.75% (MBIA INS)/(United States Treasury PRF)/(Original
Issue Yield: 7.148%), 7/1/2000 (@102) AAA $ 1,419,096
300,000 West Virginia School Building Authority, Revenue Bonds,
6.80% (MBIA INS)/(Original Issue Yield: 6.85%), 7/1/2001 AAA 327,773
510,000 West Virginia School Building Authority, Revenue Refunding
Bonds, 4.70% (AMBAC INS)/(Original Issue Yield: 4.75%),
7/1/2003 AAA 518,407
100,000 West Virginia State Building Commission Lease, Revenue
Bonds (Series A), 6.50% (West Virginia Regional Jail &
Correction)/(MBIA INS)/(Original Issue Yield: 6.60%),
7/1/2000 AAA 106,360
1,000,000 West Virginia State Parkways Economic Development &
Tourism Authority, Revenue Refunding Bonds, 4.80% (FGIC
INS), 5/15/2000 AAA 1,018,475
400,000 West Virginia State Parkways Economic Development &
Tourism Authority, Revenue Refunding Bonds, 6.80% (FGIC
INS), 7/1/1998 NR 410,802
500,000 West Virginia State University, Revenue Refunding Bonds,
5.50% (AMBAC INS)/(Original Issue Yield: 5.60%), 4/1/2001 AAA 521,155
540,000 West Virginia State, 5.25%, 6/1/2000 AA- 542,104
500,000 West Virginia State, GO UT, 5.50%, 6/1/2000 AA- 502,357
100,000 West Virginia State, GO UT Bonds, 5.00%, 3/1/2000 AA- 102,354
400,000 West Virginia State, GO UT Bonds, 5.25% (Original Issue Yield:
5.60%), 3/1/1999 AA- 400,438
1,000,000 West Virginia State, GO UT Bonds, 5.30% (Original Issue Yield:
5.40%), 2/1/2000 AA- 1,029,916
100,000 West Virginia State, GO UT Bonds, 6.00% (Original Issue Yield:
6.05%), 6/1/2002 AA- 101,554
325,000 West Virginia University Board of Regents, Refunding Revenue
Bonds, 6.00% (MBIA INS)/(Original Issue Yield: 6.037%),
4/1/2004 AAA 353,957
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 100,000 West Virginia University Board of Regents, Revenue Bonds,
5.90% (MBIA INS), 4/1/2004 AAA $ 105,505
905,000 West Virginia University Board of Regents, Revenue Bonds,
5.90%, 4/1/2004 A+ 959,037
250,000 West Virginia University Board of Regents, Revenue Bonds,
7.25% (MBIA INS)/(Original Issue Yield: 7.30%), 4/1/2004 AAA 267,678
250,000 West Virginia University Board of Regents, Revenue Bonds,
7.25% (MBIA INS)/(Original Issue Yield: 7.527%), 4/1/2014 AAA 262,996
225,000 West Virginia Water Development Authority, Revenue
Refunding Bonds, 5.30% (FSA INS), 11/1/2002 AAA 235,781
550,000 West Virginia Water Development Authority, Revenue
Refunding Bonds, 5.80% (FSA INS)/(Original Issue Yield:
5.85%), 11/1/2012 AAA 562,834
110,000 West Virginia Water Development Authority, Water Revenue
Bonds, 6.625%, 11/1/1998 A- 113,471
765,000 West Virginia Water Development Authority, Water Revenue
Bonds, 7.70% (United States Treasury PRF)/(Original Issue
Yield: 7.822%), 11/1/2000 (@102) A- 862,840
425,000 Wetzel County, WV Board of Education, GO UT, 7.00% (MBIA
INS)/(Original Issue Yield: 7.15%), 5/1/2004 AAA 488,621
350,000 Wheeling, WV Waterworks & Sewer Systems, Revenue Bonds,
5.55% (United States Treasury, COL)/(FGIC INS), 6/1/1998 AAA 355,044
500,000 Wheeling, WV Waterworks & Sewer Systems, Revenue
Refunding Bonds, 4.85% (FGIC INS)/(Original Issue Yield:
4.90%), 6/1/2005 Aaa 511,084
500,000 Wheeling, WV Waterworks & Sewer Systems, Revenue
Refunding Bonds, 4.90% (FGIC INS)/(Original Issue Yield:
5.00%), 6/1/2006 Aaa 512,582
370,000 Wheeling, WV Waterworks & Sewer Systems, Series-C
Revenue Bonds, 5.75% (United States Treasury COL)/(FGIC
INS), 6/1/1999 AAA 381,843
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
PRINCIPAL CREDIT
AMOUNT RATING* VALUE
<C> <S> <S> <C>
LONG-TERM MUNICIPALS--CONTINUED
WEST VIRGINIA--CONTINUED
$ 300,000 Wheeling, WV Waterworks & Sewer Systems, Series-C
Revenue Bonds, 6.60% (FGIC INS)/(United States Treasury
PRF)/(Original Issue Yield: 6.691%), 6/1/2002 (@100) AAA $ 331,316
100,000 Wheeling, WV, GO UT, 7.50%, 6/1/1999 Baa1 105,883
125,000 Wheeling, WV, GO UT, 7.50%, 6/1/2000 Baa1 135,344
155,000 Wheeling, WV, GO UT, 7.50%, 6/1/2003 Baa1 176,059
225,000 Wood County, WV Building Commission, Revenue Refunding
Bonds, 6.625% (St. Joseph Hospital, Parkersburg)/(AMBAC
INS), 1/1/2006 AAA 252,572
TOTAL LONG-TERM MUNICIPALS (IDENTIFIED COST $60,971,250) 62,462,909
MUTUAL FUND--4.7%
3,038,728 Tax-Free Obligations Fund (AT NET ASSET VALUE) 3,038,728
TOTAL INVESTMENTS (IDENTIFIED COST $64,009,978)(A) $ 65,501,637
</TABLE>
(a) The cost of investments for federal tax purposes amounts to $64,009,978. The
net unrealized appreciation of investments on a federal tax basis amounts to
$1,491,659 which is comprised of $1,497,601 appreciation and $5,942
depreciation at July 31, 1997.
* Please refer to the Appendix of the Statement of Additional Information for an
explanation of the credit ratings. Current credit ratings are unaudited.
Note: The categories of investments are shown as a percentage of net assets
($64,694,152) at July 31, 1997.
The following acronyms are used throughout this portfolio:
AMBAC --American Municipal Bond Assurance Corporation BIG --Bond Investors
Guaranty COL --Collateralized FGIC --Financial Guaranty Insurance Company FSA
- --Financial Security Assurance GO --General Obligation GTD --Guaranty HFA
- --Housing Finance Authority INS --Insured LOC --Letter of Credit MBIA
- --Municipal Bond Investors Assurance PCR --Pollution Control Revenue PRF
- --Prerefunded UT --Unlimited Tax
(See Notes which are an integral part of the Financial Statements)
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Total investments in securities, at value (identified and tax cost $64,009,978) $ 65,501,637
Cash 63
Income receivable 918,908
Receivable for investments sold 322,807
Total assets 66,743,415
LIABILITIES:
Payable for investments purchased $ 1,796,470
Income distribution payable 220,641
Accrued expenses 32,152
Total liabilities 2,049,263
NET ASSETS for 6,315,198 shares outstanding $ 64,694,152
NET ASSETS CONSIST OF:
Paid in capital $ 63,167,661
Net unrealized appreciation of investments 1,491,659
Accumulated net realized gain on investments 34,832
Total Net Assets $ 64,694,152
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
$64,694,152 / 6,315,198 shares outstanding $10.24
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
STATEMENT OF OPERATIONS
PERIOD ENDED JULY 31, 1997(A) (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 914,914
EXPENSES:
Investment advisory fee $ 108,681
Administrative personnel and services fee 27,215
Custodian fees 6,340
Transfer and dividend disbursing agent fees and expenses 6,883
Directors'/Trustees' fees 2,174
Legal fees 1,992
Portfolio accounting fees 17,932
Share registration costs 10,325
Printing and postage 3,985
Insurance premiums 1,268
Miscellaneous 1,630
Total expenses 188,425
Waivers--
Waiver of investment advisory fee (54,341)
Net expenses 134,084
Net investment income 780,830
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on investments 34,832
Net change in unrealized appreciation of investments 1,491,659
Net realized and unrealized gain on investments 1,526,491
Change in net assets resulting from operations $ 2,307,321
</TABLE>
(a) For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
JULY 31, 1997(A)
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 780,830
Net realized gain (loss) on investments ($34,832 as computed for federal tax purposes) 34,832
Net change in unrealized appreciation/depreciation 1,491,659
Change in net assets resulting from operations 2,307,321
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income (780,830)
SHARE TRANSACTIONS--
Proceeds from sale of shares 65,440,719
Net asset value of shares issued to shareholders in payment of distributions declared 26,087
Cost of shares redeemed (2,299,145)
Change in net assets resulting from share transactions 63,167,661
Change in net assets 64,694,152
NET ASSETS:
Beginning of period --
End of period $ 64,694,152
</TABLE>
(a) For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
WESMARK WEST VIRGINIA MUNICIPAL BOND FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997 (UNAUDITED)
1. ORGANIZATION
WesMark Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "Act") as an open-end, management investment company. The
Trust consists of two portfolios. The financial statements included herein are
only those of WesMark West Virginia Municipal Bond Fund (the "Fund"), a
non-diversified portfolio. The financial statements of the other portfolio are
presented separately. The assets of each portfolio are segregated and a
shareholder's interest is limited to the portfolio in which shares are held. The
investment objective of the Fund is to provide current income which is exempt
from federal income tax and the income taxes imposed by the the State of West
Virginia.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS-- Municipal bonds are valued by an independent pricing
service, taking into consideration yield, liquidity, risk, credit quality,
coupon, maturity, type of issue, and any other factors or market data the
pricing service deems relevant. Short-term securities are valued at the prices
provided by an independent pricing service. However, short-term securities
with remaining maturities of sixty days or less at the time of purchase may be
valued at amortized cost, which approximates fair market value. Investments in
other open-end regulated investment companies are valued at net asset value.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS-- Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Distributions
to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES-- It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS-- The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
USE OF ESTIMATES-- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results could differ
from those estimated.
OTHER-- Investment transactions are accounted for on the trade date.
3. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
JULY 31, 1997(A)
<S> <C>
Shares sold 6,540,594
Shares issued to shareholders in payment of distributions declared 2,584
Shares redeemed (227,980)
Net change resulting from share transactions 6,315,198
</TABLE>
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to July 31, 1997.
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE-- WesBanco Bank Wheeling, the Fund's investment
adviser (the "Adviser" or "WesBanco"), receives for its services an annual
investment advisory fee equal to 0.60% of the Fund's average daily net assets.
The Adviser may voluntarily choose to waive any portion of its fee. The
Adviser can modify or terminate this voluntary waiver at any time at its sole
discretion.
ADMINISTRATIVE FEE-- Federated Administrative Services ("FAS") provides the
Fund with certain administrative personnel and services. The fee paid to FAS
is based on the level of average aggregate net assets of the Trust for the
period.
DISTRIBUTION SERVICES FEE-- The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the
Fund will compensate Edgewood Services, Inc., the principal distributor, from
the net assets of the Fund to finance activities intended to result in the
sale of the Fund's shares. The Plan provides that the Fund may incur
distribution expenses up to 0.25% of the average daily net assets of the Fund
shares, annually, to compensate Edgewood Services, Inc. For the period ended
July 31, 1997, the Fund did not incur a distribution services fee.
SHAREHOLDER SERVICES FEE-- Under the terms of a Shareholder Services Agreement
with WesBanco, the Fund will pay WesBanco up to 0.25% of average daily net
assets of the Fund for the period. The fee paid to WesBanco is used to finance
certain services for shareholders and to maintain shareholder accounts. For
the period ended July 31, 1997, the Fund shares did not incur a shareholder
services fee.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES-- Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the
Fund. The fee paid to FSSC is based on the size, type, and number of
accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES-- FServ maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
INTERFUND TRANSACTIONS-- During the period ended July 31, 1997, the Fund
engaged in purchase and sale transactions with mutual funds and/or a common
trust fund that have a common investment adviser (or affiliated investment
advisers), common Directors/Trustees, and/or common Officers. These purchase
and sale transactions were made at current market value pursuant to Rule 17a-7
under the Act amounting to $64,696,588 and $5,945,572, respectively.
$59,052,050 of these purchase transactions were attributable to a conversion
of the assets of a common trust fund into the fund.
CUSTODIAN FEES-- WesBanco is the Fund's custodian. The fee is based on the
market value of Fund securities held in custody plus certain securities
transaction charges.
ORGANIZATIONAL EXPENSES-- Organizational expenses estimated to be $21,000 were
borne initially by Administrator. The Fund has agreed to reimburse
Administrator for the organizational expenses within the five year period
following effective date.
OTHER AFFILIATED PARTIES AND TRANSACTIONS-- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in the Federated Tax-Free Obligations
Fund. As of July 31, 1997, the Fund owned 0.15% of the outstanding shares of
the Federated Tax-Free Obligations Fund.
GENERAL-- Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended July 31, 1997, were as follows:
PURCHASES $ 6,367,754
SALES $ 1,042,482
6. CONCENTRATION OF CREDIT RISK
Since the Fund invests a substantial portion of its assets in issuers located in
one state, it will be more susceptible to factors adversely affecting issuers of
that state than would be a comparable tax-exempt mutual fund that invests
nationally. In order to reduce the credit risk associated with such factors, at
July 31, 1997, 57% of the securities in the portfolio of investments are backed
by letters of credit or bond insurance of various financial institutions and
financial guaranty assurance agencies. The percentage of investments insured by
or supported (backed) by a letter of credit from any one institution or agency
did not exceed 28% of total investments. [Graphic] [Graphic]Federated Investors
Edgewood Services, Inc., Distributor Cusip 951025105 G02160-01 (9/97) [Graphic]
WesMark West Virginia Municipal Bond Fund
(A Portfolio of WesMark Funds)
Supplement to Statement of Additional Information dated March 12, 1997
A. Please insert the following information as a second paragraph under the
section entitled "Fund Ownership" on page 12 of the Statement of Additional
Information:
"As of September 2, 1997, there were no shareholders of record who owned 5%
or more of the outstanding shares of the Fund."
B. Please insert the following sub-section entitled "Advisory Fees" immediately
after the sub-section entitled "Adviser to the Fund" under the section entitled
"Investment Advisory Services" on page 14 of the Statement of Additional
Information:
"Advisory Fees
For its advisory services, WesBanco Bank Wheeling receives an annual
investment advisory fee as described in the prospectus.
For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund's Adviser earned $108,681, of which $54,341 was
voluntarily waived."
C. Please delete the sentence under the sub-section entitled "Fund
Administration" under the section entitled "Other Services" on page 14 of
the Statement of Additional Information and replace with the following:
"Federated Administrative Services, a subsidiary of Federated Investors,
provides administrative personnel and services to the Fund for a fee as
described in the prospectus.
For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund incurred costs for administrative services of
$27,215."
D. Please insert the following information as a final paragraph under the
section entitled "Brokerage Transactions" on page 14 of the Statement of
Additional Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund paid no brokerage commissions."
E. Please insert the following information as a final paragraph under the
sub-section entitled "Distribution and Shareholder Services Plans" under the
section "Purchasing Shares" on page 15 of the Statement of Additional
Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund paid no fees pursuant to the Distribution and
Shareholder Services Plans."
<PAGE>
F. Please insert the following information as the first paragraph under the
section entitled "Total Return" on page 17 of the Statement of Additional
Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund's cumulative total return was 3.71%.
Cumulative total return reflects a Fund's total performance over a specific
period of time. The Fund's total return is representative of only four
months of investment activity since the Fund's effective date."
G. Please insert the following information as the first paragraph under
the section entitled "Yield" on page 17 of the Statement of Additional
Information:
"The Fund's 30-day SEC yield at July 31, 1997 was 3.79%."
H. Please insert the following information as the first paragraph under
the section entitled "Tax-Equivalent Yield" on which begins on page 17
of the Statement of Additional Information:
"The Fund's tax-equivalent yield, assuming a combined federal and state tax
rate of 46.1%, for the 30-day period ended July 31, 1997 was 7.03%."
September 30, 1997
EDGEWOOD SERVICES, INC.
Distributor
Cusip 951025105
G02160-03 (9/97)
[GRAPHIC OMITTED]
[Graphic]
Growth
Fund
SEMI-ANNUAL REPORT AND SUPPLEMENT TO PROSPECTUS
DATED MARCH 12, 1997
[Graphic]
WESMARK GROWTH FUND
(A PORTFOLIO OF WESMARK FUNDS)
SEMI-ANNUAL REPORT AND SUPPLEMENT TO PROSPECTUS DATED MARCH 12, 1997
The following information is a supplement to your prospectus. We're sending it
to keep you up to date and comply with regulations that require mutual fund
companies to update shareholders concerning changes in prospectuses.
We suggest that you keep this information for your records.
A. Please insert this "Financial Highlights" table as page 2 of the
Prospectus.
WESMARK GROWTH FUND
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
JULY 31, 1997(A)
<S> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.04
Net realized and unrealized gain (loss) on investments 2.02
Total from investment operations 2.06
LESS DISTRIBUTIONS
Distributions from net investment income (0.03)
NET ASSET VALUE, END OF PERIOD $12.03
TOTAL RETURN(B) 20.64%
RATIOS TO AVERAGE NET ASSETS
Expenses 1.15%*
Net investment income 1.28%*
SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $107,379
Average commission rate paid(c) $0.0714
Portfolio turnover 31%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to July 31, 1997.
(b) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(c) Represents total commissions paid on portfolio securities divided by total
portfolio shares purchased or sold on which commissions were charged.
(See Notes which are an integral part of the Financial Statements)
B. Please delete references to Federated Services Company under the section
"Administration of the Fund" on page 11 of the Prospectus and replace with
Federated Administrative Services.
C. Please replace the current disclosure under the section entitled
"Certificates and Confirmations" on page 13 of the Prospectus with the
following:
"Shareholders will receive detailed confirmations of transactions. In
addition, shareholders will receive periodic statements of reporting all
account activity, including dividends paid. The Fund will not issue share
certificates."
D. Please delete the financial statements on pages 19 and 20 of the
Prospectus and replace with the following:
WESMARK GROWTH FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
<C> <S> <C>
COMMON STOCKS--69.8%
CABLE TELEVISION--2.7%
135,000 (a)U.S. West Media Group $ 2,978,438
CHEMICAL-SPECIALTY--1.7%
55,000 Morton International, Inc. 1,839,062
COMPUTER SERVICES--7.6%
60,000 Electronic Data Systems Corp. 2,595,000
110,000 First Data Corp. 4,798,750
10,000 HBO & Co. 773,750
Total 8,167,500
COMPUTERS-MINI--2.6%
40,000 Hewlett-Packard Co. 2,802,500
ELECTRONIC COMPONENTS--3.0%
45,000 (a)EMC Corp. Mass 2,272,500
27,000 (a)Silicon Valley Group, Inc. 837,000
Total 3,109,500
ELECTRONIC COMPONENTS-SEMICONDUCTOR--6.2%
85,000 (a)Adaptec, Inc. 3,580,625
32,000 (a)Lam Research Corp. 1,692,000
50,000 (a)S3, Inc. 768,750
5,000 Texas Instruments, Inc. 575,000
Total 6,616,375
HEALTHCARE SERVICES--3.9%
55,000 Columbia/HCA Healthcare Corp. 1,773,750
50,000 (a)HEALTHSOUTH Corp. 1,325,000
35,000 (a)Health Management Association, Class A 1,117,812
Total 4,216,562
</TABLE>
WESMARK GROWTH FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
<C> <S> <C>
COMMON STOCKS--CONTINUED
INSURANCE PROPERTY & CASUALTY--2.1%
21,000 American International Group, Inc. $ 2,236,500
INSURANCE-LIFE & HEALTH--0.7%
10,000 Reliastar Financial Corp. 766,875
LEISURE & RECREATION--0.7%
25,000 K2, Inc. 790,625
MACHINERY-FARM--3.4%
65,000 Deere & Co. 3,696,875
MEDICAL PRODUCTS & SUPPLY--3.5%
60,000 Johnson & Johnson 3,738,750
NETWORKING PRODUCTS--4.1%
55,000 (a)Cisco Systems, Inc. 4,375,937
OIL & GAS DRILLING--1.1%
15,000 Transocean Offshore, Inc. 1,225,313
OIL & GAS EQUIPMENT & SERVICES--0.6%
15,000 Williams Cos., Inc. (The) 686,250
OIL COMPANIES-EXPLORATION & PRODUCTION--1.5%
20,000 Burlington Resources, Inc. 945,000
40,000 Lomak Petroleum, Inc. 690,000
Total 1,635,000
OIL FIELD SERVICES--4.2%
55,000 (a)Pride International, Inc. 1,454,063
60,000 Tidewater, Inc. 3,030,000
Total 4,484,063
OIL REFINING & MARKETING--1.4%
35,000 K N Energy, Inc. 1,470,000
OIL-INTEGRATED--5.0%
115,000 Phillips Petroleum Co. 5,297,188
</TABLE>
WESMARK GROWTH FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
<C> <S> <C>
COMMON STOCKS--CONTINUED
TELECOMMUNICATIONS EQUIPMENT--10.0%
41,000 Lucent Technologies, Inc. $ 3,482,437
55,000 SBC Communications, Inc. 3,255,313
60,000 Scientific-Atlanta, Inc. 1,260,000
60,000 Telefonaktiebolaget LM Ericsson, Class B, ADR 2,715,000
Total 10,712,750
TELECOMMUNICATIONS-CELLULAR--2.1%
70,000 (a)Airtouch Communications, Inc. 2,305,625
TRANSPORTATION-RAIL--1.3%
15,000 Burlington Northern Santa Fe 1,448,437
UTLILITY-GAS DISTRIBUTION--0.4%
20,000 AGL Resources, Inc. 418,750
TOTAL COMMON STOCKS (IDENTIFIED COST $54,085,759) 75,018,875
(B)COMMERCIAL PAPER--4.2%
FINANCE-AUTOMOTIVE--4.2%
4,550,000 Ford Motor Credit Co., 5.480%-5.530%, 8/1/1997-8/29/1997
(AT AMORTIZED COST) 4,535,722
(B)GOVERNMENT AGENCIES--22.6%
$ 4,930,000 Federal Home Loan Bank, Discount Note, 5.4210%, 8/13/1997 4,921,257
3,495,000 Federal Home Loan Bank, Discount Note, 5.602%, 9/10/1997 3,473,950
8,670,000 Federal Home Loan Bank, Discount Note, 5.4390%, 9/19/1997 8,607,220
7,410,000 Federal Home Loan Bank,Discount Note, 5.597%, 11/17/1997 7,290,395
TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $24,292,271) 24,292,822
</TABLE>
WESMARK GROWTH FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
OR SHARES VALUE
<C> <S> <C>
U.S. TREASURY OBLIGATIONS--3.7%
$ 3,968,000 United States Treasury Bill, 8/28/1997 (IDENTIFIED COST $ 3,952,937
$3,952,584)
MUTUAL FUNDS--0.0%
295 U.S. Treasury Cash Reserves Fund (AT NET ASSET VALUE) 295
TOTAL INVESTMENTS (IDENTIFIED COST $86,866,631)(A) $ 107,800,651
</TABLE>
(a) Non-income producing security.
(b) Each issue shows the rate of discount at the time of purchase for discount
issues, or the coupon for interest bearing issues.
(c) The cost of investments for federal tax purposes amounts to $86,866,632. The
net unrealized appreciation of investments on a federal tax basis amounts to
$20,934,019, comprised of $21,381,011 appreciation and $446,992 depreciation at
July 31, 1997.
Note: The categories of investments are shown as a percentage of net assets
($107,379,326) at July 31, 1997.
The following acronym is used in this portfolio:
ADR--American Depositary Receipt
(See Notes which are an integral part of the Financial Statements)
WESMARK GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 1997 (UNAUDITED)
<TABLE>
<S> <C> <C>
ASSETS:
Investments in securities, at value (identified and tax cost $86,866,632) $ 107,800,651
Income receivable 93,835
Total assets 107,894,486
LIABILITIES:
Payable for investments purchased $ 469,738
Accrued expenses 45,422
Total liabilities 515,160
NET ASSETS for 8,923,666 shares outstanding $ 107,379,326
NET ASSETS CONSIST OF:
Paid in capital $ 82,219,692
Net unrealized appreciation of investments 20,934,019
Accumulated net realized gain on investments 4,142,461
Undistributed net investment income 83,154
Total Net Assets $ 107,379,326
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PROCEEDS PER SHARE:
$107,379,326 / 8,923,666 shares outstanding $12.03
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WESMARK GROWTH FUND
STATEMENT OF OPERATIONS
PERIOD ENDED JULY 31, 1997(A) (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 233,842
Interest 458,922
Total income 692,764
EXPENSES:
Investment advisory fee $ 213,667
Administrative personnel and services fee 42,733
Custodian fees 8,262
Transfer and dividend disbursing agent fees and expenses 7,407
Directors'/Trustees' fees 3,134
Legal fees 2,849
Portfolio accounting fees 20,797
Share registration costs 18,517
Printing and postage 6,552
Insurance premiums 1,709
Miscellaneous 1,994
Total expenses 327,621
Net investment income 365,143
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments 4,142,461
Net change in unrealized appreciation of investments 20,934,019
Net realized and unrealized gain on investments 25,076,480
Change in net assets resulting from operations $ 25,441,623
</TABLE>
(a) For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997.
(See Notes which are an integral part of the Financial Statements)
WESMARK GROWTH FUND
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
(UNAUDITED)
JULY 31, 1997*
<S> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS--
Net investment income $ 365,143 Net realized gain on investments ($4,142,461,
as computed for federal tax purposes) 4,142,461 Net change in unrealized
appreciation 20,934,019
Change in net assets resulting from operations 25,441,623
DISTRIBUTIONS TO SHAREHOLDERS--
Distributions from net investment income (281,989)
SHARE TRANSACTIONS--
Proceeds from sale of shares 84,697,023
Net asset value of shares issued to shareholders in payment of distributions 85,024
declared
Cost of shares redeemed (2,662,355)
Change in net assets resulting from share transactions 82,119,692
Change in net assets 107,279,326
NET ASSETS:
Beginning of period 100,000
End of period (including undistributed net investment income of $83,154) $107,379,326
</TABLE>
* For the period from April 14, 1997 (date of initial public investment) to July
31, 1997.
(See Notes which are an integral part of the Financial Statements)
WESMARK GROWTH FUND
NOTES TO FINANCIAL STATEMENTS
JULY 31, 1997 (UNAUDITED)
1. ORGANIZATION
WesMark Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "Act") as an open-end, management investment company. The
Trust consists of two portfolios. The financial statements included herein are
only those of WesMark Growth Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolio are presented separately. The assets
of each portfolio are segregated and a shareholder's interest is limited to the
portfolio in which shares are held. The investment objective of the Fund is
appreciation of capital. The Fund invests primarily in equity securities of
companies with prospects for above-average growth in earnings and dividends.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
INVESTMENT VALUATIONS-- Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at the
time of purchase may be valued at amortized cost, which approximates fair market
value. Investments in other open-end regulated investment companies are valued
at net asset value.
INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS-- Interest income and expenses are
accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Dividend income
and distributions to shareholders are recorded on the ex-dividend date.
FEDERAL TAXES-- It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS-- The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin earning interest on the settlement date.
USE OF ESTIMATES-- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts of assets, liabilities, expenses and
revenues reported in the financial statements. Actual results could differ from
those estimated.
OTHER-- Investment transactions are accounted for on the trade date.
3. SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
PERIOD ENDED
JULY 31, 1997(A)
<S> <C>
Shares sold 9,148,456
Shares issued to shareholders in payment of distributions declared 7,498
Shares redeemed (242,288)
Net change resulting from share transactions 8,913,666
</TABLE>
(a) Reflects operations for the period from April 14, 1997 (date of public
investment) to July 31, 1997.
4. INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEE-- WesBanco Bank Wheeling, the Fund's investment adviser
(the "Adviser" or "WesBanco"), receives for its services an annual investment
advisory fee equal to 0.75% of the Fund's average daily net assets.
ADMINISTRATIVE FEE-- Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee paid to FAS is based
on the level of average aggregate net assets of the Fund for the period.
DISTRIBUTION SERVICES FEE-- The Fund has adopted a Distribution Plan (the
"Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the
Fund will compensate Edgewood Services, Inc., the principal distributor, from
the net assets of the Fund to finance activities intended to result in the sale
of the Fund's shares. The Plan provides that the Fund may incur distribution
expenses up to 0.25% of the average daily net assets of the Fund, annually, to
compensate Edgewood Services, Inc. For the period ended July 31, 1997, the Fund
did not incur a distribution services fee.
SHAREHOLDER SERVICES FEE-- Under the terms of a Shareholder Services Agreement
with WesBanco, the Fund will pay WesBanco up to 0.25% of average daily net
assets of the Fund for the period. The fee paid to WesBanco is used to finance
certain services for shareholders and to maintain shareholder accounts. For the
period ended July 31, 1997, the Fund did not incur a shareholder services fee.
TRANSFER AND DIVIDEND DISBURSING AGENT FEES AND EXPENSES-- Federated Services
Company ("FServ"), through its subsidiary, Federated Shareholder Services
Company ("FSSC") serves as transfer and dividend disbursing agent for the Fund.
The fee paid to FSSC is based on the size, type, and number of
accounts and transactions made by shareholders.
PORTFOLIO ACCOUNTING FEES-- FServ maintains the Fund's accounting records for
which it receives a fee. The fee is based on the level of the Fund's average
daily net assets for the period, plus out-of-pocket expenses.
INTERFUND TRANSACTIONS-- During the period ended July 31, 1997, the Fund engaged
in purchase and sale transactions with mutual funds and/or common trust funds
that have a common investment adviser (or affiliated investment advisers),
common Directors/Trustees, and/or common Officers. These purchase and sale
transactions were made at current market value pursuant to Rule 17a-7 under the
Act amounting to $84,025,950 and $7,953,863, respectively. $76,957,809 of these
purchase transactions were attributable to a conversion of the assets of two
common trust funds into the fund.
CUSTODIAN FEES-- WesBanco is the Fund's custodian. The fee is based on the
market value of Fund securities held in custody plus certain securities
transaction charges.
ORGANIZATIONAL EXPENSES-- Organizational expenses estimated to $21,000 were
borne initially by the Administrator. The Fund has agreed to reimburse the
Administrator for the organizational expenses within the five-year period
following effective date.
OTHER AFFILIATED PARTIES AND TRANSACTIONS-- Pursuant to an exemptive Order
issued by the SEC, the Fund may invest in the Federated U.S. Treasury Cash
Reserves Fund.
GENERAL-- Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term securities, for the
period ended July 31, 1997, were as follows:
PURCHASES $26,118,987
SALES $38,657,517
[Graphic]
Federated Investors
Edgewood Securities Corp., Distributor
Cusip 951025204
G02160-02 (9/97)
[Graphic]
WesMark Growth Fund
(A Portfolio of WesMark Funds)
Supplement to Statement of Additional Information dated March 12, 1997
A. Please insert the following two sentences to the end of the section
entitled "Portfolio Turnover" on page 6 of the Statement of Additional
Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund's portfolio turnover rate was 31%. The portfolio
turnover rate is representative of only four months of investment activity."
B. Please replace the second sentence under the sub-section entitled "Lending
Cash or Securities" under the section entitled "Investment Limitations" on page
6 of the Statement of Additional Information with the following:
"The Fund may, however, acquire publicly or non-publicly issued debt
securities or enter into repurchase agreements in accordance with its investment
objective, policies, and limitations or the Declaration of Trust."
C. Please insert the following information as a second paragraph under the
section entitled "Fund Ownership" on page 11 of the Statement of Additional
Information:
"As of September 2, 1997 the following shareholder of record owned 5% or
more of the outstanding shares of the Fund: Dolling & Co., Wheeling, West
Virginia, owned approximately 614,014 shares (6.80%)."
D. Please insert the following information as the second paragraph under the
sub-section entitled "Advisory Fees" under the section entitled "Investment
Advisory Services" on page 13 of the Statement of Additional Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund's adviser earned $213,667, of which $0 was voluntarily
waived."
E. Please delete the sentence under the sub-section entitled "Fund
Administration" under the main section entitled "Other Services" on page 13 of
the Statement of Additional Information and replace with the following:
"Federated Administrative Services, a subsidiary of Federated Investors,
provides administrative personnel and services to the Fund for a fee as
described in the prospectus.
For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund incurred costs for administrative services of $42,733."
<PAGE>
F. Please insert the following information as a final paragraph under the
section entitled "Brokerage Transactions" which begins on page 13 of the
Statement of Additional Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund paid $38,607 in brokerage commissions."
G. Please insert the following information as a final paragraph under the
sub-section entitled "Distribution and Shareholder Services Plans" under the
section "Purchasing Shares" on page 14 of the Statement of Additional
Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund paid no fees pursuant to the Distribution and
Shareholder Services Plans."
H. Please insert the following information as the first paragraph under the
section entitled "Total Return" on page 16 of the Statement of Additional
Information:
"For the period from April 14, 1997 (date of initial public investment) to
July 31, 1997, the Fund's cumulative total return was 20.64%.
Cumulative total return reflects a Fund's total performance over a specific
period of time. The Fund's total return is representative of only four months of
investment activity since the Fund's effective date."
I. Please insert the following information as the first paragraph under the
section entitled "Yield" on page 17 of the Statement of Additional
Information:
"The Fund's 30-day SEC yield at July 31, 1997 was 1.14%."
September 30, 1997
EDGEWOOD SERVICES, INC.
Distributor
Cusip 951025204
G02160-04 (9/97)
[GRAPHIC OMITTED]
