[LOGO OF WESMARK WEST VIRGINIA MUNICIPAL BOND FUND]
West Virginia
Municipal Bond
Fund
Semi-Annual Report
July 31, 1998
[LOGO OF WESMARK FUNDS]
President's Message
- --------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the second Semi-Annual Report to shareholders for
WesMark West Virginia Municipal Bond Fund. This report covers the six-month
reporting period from February 1, 1998 through July 31, 1998. It gives you a
complete picture of the fund's operations, which include a complete list of fund
holdings and the financial statements.
WesMark West Virginia Municipal Bond Fund is managed to help your money earn
income free from federal income tax and West Virginia state income tax.* To
pursue that objective, it invests in a portfolio of high-quality bonds issued by
West Virginia municipalities.
During the six-month reporting period, the fund paid double-tax-free income
dividends totaling $0.22 per share, which accounted for the fund's 1.74% total
return.** At the end of the reporting period, the fund's assets totaled more
than $66 million.
Thank you for selecting WesMark West Virginia Municipal Bond Fund to help your
money earn double-tax-free income.
Sincerely,
/s/Edward C. Gonzales
Edward C. Gonzales
President
September 15, 1998
* Income may be subject to the federal alternative minimum tax.
** Performance quoted represents past performance and is not indicative of
future results. Investment return and principal value will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than
their original cost.
WesMark West Virginia Municipal Bond Fund
Portfolio of Investments
July 31, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--97.8%
West Virginia--97.8%
$ 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 $ 199,181
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 210,114
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 220,963
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 237,318
500,000 Berkeley County, WV Board of Education,
GO UT, 4.50%(FGIC INS)/(Original Issue
Yield: 5.30%), 6/1/2009 AAA 495,323
500,000 Berkeley County, WV Board of Education,
GO UT Refunding Bonds, 5.35%, 4/1/1999 A+ 504,862
360,000 Berkeley County, WV Board of Education,
GO UT Refunding Bonds, 5.45%, 4/1/2000 A+ 368,081
1,030,000 Berkeley County, WV Board of Education,
GO UT, 5.75% (FGIC INS), 6/1/2003 AAA 1,100,508
400,000 Berkeley County, WV Board of Education,
GO UT, 7.20% (BIG INS), 4/1/1999 AAA 408,280
100,000 Brooke County, WV Board of Education,
GO UT Refunding Bonds, 8.625%
(AMBAC INS), 8/1/2000 AAA 108,917
100,000 Brooke County, WV Board of Education,
GO UT Refunding Bonds, 8.75%
(AMBAC INS), 8/1/2001 AAA 113,273
1,350,000 Cabell County, WV Board of Education,
GO UT, 6.50% (MBIA INS), 5/1/2003 AAA 1,484,170
500,000 Cabell County, WV Board of Education,
GO UT, 4.60% (Original Issue Yield:
4.70%), 5/1/2003 A+ 507,211
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$ 500,000 Cabell County, WV Board of Education,
GO UT, 6.00% (MBIA INS), 5/1/2006 AAA $ 552,361
100,000 Cable, Putnam & Wayne County's, WV,
Single Family Residence Mortgage Revenue
Bonds, 7.375% (FGIC INS), 4/1/2010 AAA 116,783
275,000 Charles Town, WV, Residential Mortgage
Revenue Bonds, 6.20%, 3/1/2011 NR 286,420
355,000 Charles Town, WV, Revenue Refunding
Bonds, 5.00% (Original Issue Yield:
5.15%), 10/1/2013 AA 352,368
340,000 Charles Town, WV, Revenue Refunding
Bonds, 5.00%, 10/1/2012 AA 339,293
865,000 Charleston, WV Building Commission,
Subordinate Bonds, 6.00% (Charleston Town
Center Parking), 12/1/2010 NR 931,439
355,000 Charleston, WV, GO UT, 7.20%, 10/1/2003 NR 401,688
450,000 Clarksburg, WV, Revenue Refunding
Bonds, 5.25% (Asset GTD)/(Original
Issue Yield: 5.30%), 9/1/1999 AA 456,368
250,000 Harrison County, WV Board of Education,
GO UT, 6.20% (FGIC INS), 5/1/2000 AAA 259,618
500,000 Harrison County, WV Board of Education,
GO UT, 6.40% (FGIC INS)/(Original Issue
Yield: 6.45%), 5/1/2006 AAA 565,377
410,000 Harrison County, WV County Commission,
Special Obligation Refunding Bonds, 6.35%
(Original Issue Yield: 6.45%), 5/15/2004 AAA 452,195
250,000 Jefferson County, WV Board of
Education, School Improvement Bonds, 6.85%
(FGIC INS), 7/1/2001 AAA 269,349
750,000 Kanawha County, WV Commercial
Development, Revenue Refunding Bonds, 6.50%
(May Department Stores Co.), 6/1/2003 A 824,696
2,025,000 Kanawha County, WV, Pollution Control
Revenue Bonds, 7.35% (Union Carbide
Corp.), 8/1/2004 NR 2,271,297
500,000 Lewis County, WV, Revenue Bonds,
10.375% (Crestview Manor Project), 8/1/2019 NR 546,960
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$ 285,000 Logan County, WV, Revenue Bonds, 8.00%
(Logan County Health Care Center Limited
Partnership Project), 12/1/2009 NR $ 356,852
100,000 Marion County, WV Single Family
Mortgage, Revenue Bonds, 7.20%
(FGIC INS), 8/1/2001 AAA 107,964
355,000 Mason County, WV, Pollution Control
Revenue Bond, 5.45% (Ohio Power Co.)/
(AMBAC INS)/(Original Issue Yield: 5.47%),
12/1/2016 AAA 361,626
185,000 Ohio County, WV Board of Education, GO UT Refunding
Bonds, 5.125% (MBIA INS)/
(Original Issue Yield: 5.375%), 6/1/2018 AAA 184,758
535,000 Ohio County, WV Board of Education, GO
UT Refunding Bonds, 5.125% (Original
Issue Yield: 5.375%), 6/1/2018 A+ 535,000
200,000 Ohio County, WV Board of Education, GO
UT, 6.30%, 6/1/2001 A+ 211,753
475,000 Ohio County, WV Board of Education, GO
UT, 7.00%, 6/1/2002 A+ 522,839
500,000 Ohio County, WV Board of Education, GO
UT, 7.00%, 6/1/2003 A+ 560,164
530,000 Ohio County, WV Board of Education, GO
UT, 7.00%, 6/1/2004 A+ 603,975
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 250,000
1,000,000 Ohio County, WV, Revenue Bonds, 4.85%
(Ohio Valley Medical Center)/(American
Capital Access INS), 1/1/2008 A 1,000,709
500,000 Parkersburg, WV Waterworks & Sewer
Systems, Revenue Refunding Bonds, 4.75%
(FSA INS)/(Original Issue Yield: 4.80%),
3/1/2002 AAA 509,877
400,000 Parkersburg, WV Waterworks & Sewer
Systems, Revenue Refunding Bonds, 4.85%
(FSA INS)/(Original Issue Yield: 4.90%),
3/1/2003 AAA 410,388
500,000 Pleasants County, WV PCR, Refunding
Revenue Bond, 6.15% (West Penn Power
Co.)/(AMBAC INS), 5/1/2015 AAA 544,532
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$1,000,000 Pleasants County, WV PCR, Refunding
Revenue Bonds, 4.70% (Monongahela Power
Co.), 11/1/2007 A $ 1,004,400
475,000 Pleasants County, WV PCR, Refunding
Revenue Bonds, 6.15% (Potomac Edison
Co.)/(MBIA INS), 5/1/2015 AAA 515,870
475,000 Raleigh County, WV, Refunding Revenue
Bonds, 5.50%, 6/1/2006 NR 496,463
1,485,000 Randolph County, WV, Refunding Revenue
Bonds, 5.20% (Davis Health Systems,
Inc.)/(FSA INS), 11/1/2015 NR 1,493,785
120,000 South Charleston, WV, GO UT Bonds,
5.75%, 9/1/1998 NR 120,166
480,000 South Charleston, WV, Refunding Revenue
Bonds, 4.70% (MBIA INS), 10/1/2001 AAA 484,893
1,000,000 South Charleston, WV, Refunding Revenue
Bonds, 7.625% (Union Carbide Corp.),
8/1/2005 BBB 1,166,636
500,000 South Charleston, WV, Revenue Bonds,
5.50% (MBIA INS), 10/1/2009 AAA 516,087
415,000 Taylor County, WV, GO UT Bonds, 8.40%
(Original Issue Yield: 8.45%), 5/1/2001 NR 462,179
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 181,364
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 554,590
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 700,441
700,000 West Virgina State College, Revenue
Bonds, 5.25% (AMBAC INS)/(Original Issue
Yield: 5.40%), 4/1/2000 AAA 714,613
800,000 West Virgina State College, Revenue
Bonds, 5.50% (AMBAC INS)/(Original Issue
Yield: 5.60%), 4/1/2001 AAA 828,381
1,000,000 West Virgina State College, Revenue
Bonds, 5.75% (AMBAC INS)/(Original Issue
Yield: 5.85%), 4/1/2003 AAA 1,063,696
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$ 200,000 West Virgina State College, Revenue
Bonds, 5.75% (AMBAC INS)/(Original Issue
Yield: 5.95%), 4/1/2004 AAA $ 214,954
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 213,167
300,000 West Virginia HFA, Revenue Bonds, 4.70%
(FSA LOC), 8/1/2006 NR 301,790
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 719,608
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 1,712,680
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 227,573
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 1,859,239
180,000 West Virginia HFA, Revenue Bonds, 6.75%
(Original Issue Yield: 6.85%), 3/1/2014 BBB 197,165
500,000 West Virginia HFA, Revenue Bonds,
7.875% (Cabell Hospital)/(Original Issue
Yield: 8.007%), 1/1/1999 (@102) NR 518,376
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 NR 1,519,742
195,000 West Virginia Housing Development Fund,
Refunding Revenue Bonds, 4.90%, 5/1/2004 AAA 197,323
165,000 West Virginia Housing Development Fund,
Refunding Revenue Bonds, 5.15%, 5/1/2006 AAA 168,581
285,000 West Virginia Housing Development Fund,
Refunding Revenue Bonds, 5.35%, 5/1/2008 AAA 295,720
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$ 275,000 West Virginia Housing Development Fund,
Refunding Revenue Bonds, 6.70%, 5/1/2009 AAA $ 294,007
735,000 West Virginia Housing Development Fund,
Revenue Bonds, 5.35%, 11/1/2010 AAA 760,337
500,000 West Virginia School Building
Authority, Refunding Revenue Bonds, 4.80%
(AMBAC INS)/(Original Issue Yield: 4.85%),
7/1/2004 AAA 515,292
3,720,000 West Virginia School Building Authority,
Revenue Bonds, 5.625% (MBIA INS)/(Original
Issue Yield: 5.90%), 7/1/2003 AAA 3,954,006
180,000 West Virginia School Building Authority,
Revenue Bonds, 5.70% (MBIA INS)/(Original
Issue Yield: 5.75%), 7/1/2000 AAA 185,820
150,000 West Virginia School Building Authority,
Revenue Bonds, 5.80% (MBIA INS)/(Original
Issue Yield: 5.90%), 7/1/2001 AAA 157,147
855,000 West Virginia School Building Authority,
Revenue Bonds, 6.25% (MBIA INS), 7/1/2001 AAA 905,497
100,000 West Virginia School Building Authority,
Revenue Bonds, 6.75% (MBIA INS)/(Original
Issue Yield: 7.00%), 7/1/2004 AAA 113,456
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 1,390,873
300,000 West Virginia School Building Authority,
Revenue Bonds, 6.80% (MBIA INS)/(Original
Issue Yield: 6.85%), 7/1/2001 AAA 322,126
510,000 West Virginia School Building Authority,
Revenue Refunding Bonds, 4.70% (AMBAC
INS)/(Original Issue Yield: 4.75%), 7/1/2003 AAA 521,205
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 104,659
870,000 West Virginia State Hospital Finance
Authority, Refunding Revenue Bonds, 5.00%
(FSA INS), 8/1/2009 NR 888,976
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$1,000,000 West Virginia State Hospital Finance
Authority, Refunding Revenue Bonds, 5.00%
(West Virginia University Hospital, Inc.)/
(MBIA INS)/(Original Issue Yield: 5.55%),
6/1/2016 AAA $ 986,006
1,000,000 West Virginia State Hospital Finance
Authority, Revenue Bonds, 5.00% (Fairmont
General Hospital, Inc.), 11/1/2004 BBB 1,012,770
500,000 West Virginia State Parkways Economic
Development & Tourism Authority, Revenue
Refunding Bonds, 4.80% (FGIC INS), 5/15/2000 AAA 507,329
500,000 West Virginia State University, Revenue
Refunding Bonds, 5.50% (AMBAC INS)/(Original
Issue Yield: 5.60%), 4/1/2001 AAA 518,122
540,000 West Virginia State, 5.25%, 6/1/2000 AA 540,526
500,000 West Virginia State, GO UT, 5.50%, 6/1/2000 AA 502,474
100,000 West Virginia State, GO UT Bonds,
5.00%, 3/1/2000 AA 101,593
400,000 West Virginia State, GO UT Bonds, 5.25%
(Original Issue Yield: 5.60%), 3/1/1999 AA 400,439
1,000,000 West Virginia State, GO UT Bonds, 5.30%
(Original Issue Yield: 5.40%), 2/1/2000 AA 1,019,476
100,000 West Virginia State, GO UT Bonds, 6.00%
(Original Issue Yield: 6.05%), 6/1/2002 AA 100,647
195,000 West Virginia University Board of
Regents, Refunding Revenue Bonds, 6.00%
(MBIA INS)/(Original Issue Yield: 6.037%),
4/1/2004 AAA 212,114
85,000 West Virginia University Board of
Regents, Revenue Bonds, 5.90% (MBIA INS),
4/1/2004 AAA 90,582
905,000 West Virginia University Board of Regents,
Revenue Bonds, 5.90%, 4/1/2004 A+ 964,430
250,000 West Virginia University Board of
Regents, Revenue Bonds, 7.25% (MBIA INS)/
(Original Issue Yield: 7.30%), 4/1/2004 AAA 260,669
250,000 West Virginia University Board of Regents,
Revenue Bonds, 7.25% (MBIA INS)/(Original
Issue Yield: 7.527%), 4/1/2014 AAA 255,790
400,000 West Virginia University, Refunding
Bond (Series A), 4.85% (AMBAC INS)/(Original
Issue Yield: 4.95%), 5/1/2010 AAA 405,518
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal Credit
Amount Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$1,000,000 West Virginia University, Revenue Bonds
(Series B), 5.00% (West Virginia
University Project)/(AMBAC INS)/
(Original Issue Yield: 5.19%), 5/1/2015 AAA $ 994,315
100,000 West Virginia University, Revenue Bonds,
5.50% (AMBAC INS)/(Original Issue Yield:
5.55%), 4/1/2009 AAA 106, 587
2,070,000 West Virginia Various Fourty-Four
Municipalities, Series A, 5.00%, 8/1/2008 NR 2,119,098
225,000 West Virginia Water Development Authority,
Revenue Refunding Bonds, 5.30% (FSA INS),
11/1/2002 AAA 235,329
550,000 West Virginia Water Development
Authority, Revenue Refunding Bonds, 5.80%
(FSA INS)/(Original Issue Yield: 5.85%),
11/1/2012 AAA 562,331
110,000 West Virginia Water Development
Authority, Water Revenue Bonds, 6.625%,
11/1/1998 A 110,673
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 840,300
425,000 Wetzel County, WV Board of Education,
GO UT, 7.00% (MBIA INS)/(Original Issue
Yield: 7.15%), 5/1/2004 AAA 485,427
500,000 Wheeling, WV Waterworks & Sewer
Systems, Revenue Refunding Bonds, 4.85%
(FGIC INS)/(Original Issue Yield: 4.90%),
6/1/2005 NR 516,704
500,000 Wheeling, WV Waterworks & Sewer Systems,
Revenue Refunding Bonds, 4.90% (FGIC INS)/
(Original Issue Yield: 5.00%), 6/1/2006 NR 518,734
370,000 Wheeling, WV Waterworks & Sewer Systems,
Series-C Revenue Bonds, 5.75% (United States
Treasury COL)/(FGIC INS), 6/1/1999 AAA 375,903
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 325,890
100,000 Wheeling, WV, GO UT, 7.50%, 6/1/1999 NR 102,932
</TABLE>
WesMark West Virginia Municipal Bond Fund
<TABLE>
<CAPTION>
Principal
Amount Credit
or Shares Rating* Value
- ------------------ ----------------------------------------------- ------- -----------
<S> <C> <C> <C>
Long-Term Municipals--continued
West Virginia--continued
$ 125,000 Wheeling, WV, GO UT, 7.50%, 6/1/2000 NR $ 132,718
155,000 Wheeling, WV, GO UT, 7.50%, 6/1/2003 NR 175,847
225,000 Wood County, WV Building Commission, Revenue
Refunding Bonds, 6.625% (St. Joseph Hospital,
Parkersburg)/(AMBAC INS), 1/1/2006 AAA 251,181
Total Long-Term Municipals (identified
cost $63,431,225) 65,040,187
Mutual Fund--2.6%
1,717,576 Tax-Free Obligations Fund (at net asset value) 1,717,576
Total Investments (identified cost
$65,148,801)(a) $66,757,763
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
(a) The cost of investments for federal tax purposes amounts to $65,148,801. The
net unrealized appreciation of investments on a federal tax basis amounts to
$1,608,962 which is comprised of $1,621,998 appreciation and $13,036
depreciation at July 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($66,464,308) at July 31, 1998.
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, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Assets:
Total investments in securities, at value (identified and tax cost $65,148,801) $66,757,763
Income receivable 982,237
Deferred organizational costs 4,935
Total assets 67,744,935
Liabilities:
Payable for investments purchased $ 1,019,401
Income distribution payable 229,900
Accrued expenses 31,326
Total liabilities 1,280,627
Net Assets for 6,477,290 shares outstanding $66,464,308
Net Assets Consist of:
Paid in capital $64,821,090
Net unrealized appreciation of investments 1,608,962
Accumulated net realized gain on investments 34,256
Total Net Assets $66,464,308
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$66,464,308 divided by 6,477,290 shares outstanding $10.26
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark West Virginia Municipal Bond Fund
Statement of Operations
Six Months Ended July 31, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Investment Income:
Interest $ 1,628,544
Expenses:
Investment advisory fee $ 196,004
Administrative personnel and services fee 47,688
Custodian fees 6,774
Transfer and dividend disbursing agent fees and expenses 21,632
Directors'/Trustees' fees 1,401
Auditing fees 6,716
Legal fees 327
Portfolio accounting fees 32,341
Share registration costs 17,356
Printing and postage 5,431
Insurance premiums 1,401
Miscellaneous 1,938
Total expenses 339,009
Waiver--
Waiver of investment advisory fee (98,002)
Net expenses 241,007
Net investment income 1,387,537
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 34,081
Net change in unrealized appreciation of investments (282,120)
Net realized and unrealized loss on investments (248,039)
Change in net assets resulting from operations $ 1,139,498
</TABLE>
(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>
Six Months
Ended
(unaudited) Period Ended
July 31, 1998 January 31, 1998*
------------- -----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 1,387,537 $ 2,171,782
Net realized gain (loss) on investments ($34,081 and $48,886,
net gains, respectively, as computed for federal tax purposes) 34,081 48,886
Net change in unrealized appreciation (282,120) 1,891,082
Change in net assets resulting from operations 1,139,498 4,111,750
Distributions to Shareholders--
Distributions from net investment income (1,387,537) (2,171,782)
Distributions from net realized gains (4,446) (44,265)
Change in net assets resulting from distributions to shareholders (1,391,983) (2,216,047)
Share Transactions--
Proceeds from sale of shares 5,283,537 70,272,209
Net asset value of shares issued to shareholders in payment of
distributions declared 92,583 185,660
Cost of shares redeemed (5,040,083) (5,972,816)
Change in net assets resulting from share transactions 336,037 64,485,053
Change in net assets 83,552 66,380,756
Net Assets:
Beginning of period 66,380,756 --
End of period $66,464,308 $66,380,756
</TABLE>
* For the period from April 14, 1997 (date of initial public investment) to
January 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark West Virginia Municipal Bond Fund
Financial Highlights
- --------------------------------------------------------------------------------
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Period Ended
July 31, January 31,
1998 1998(a)
<S> <C> <C>
Net asset value, beginning of period $ 10.30 $ 10.00
Income from investment operations
Net investment income 0.22 0.35
Net realized and unrealized gain (loss) on investments (0.04) 0.31
Total from investment operations 0.18 0.66
Less distributions
Distributions from net investment income (0.22) (0.35)
Distributions from net realized gain on investments 0.00** (0.01)
Total distributions (0.22) (0.36)
Net asset value, end of period $ 10.26 $ 10.30
Total return(b) 1.74% 6.64%
Ratios to average net assets
Expenses 0.74%* 0.74%*
Net investment income 4.25%* 4.26%*
Expense waiver/reimbursement(c) 0.30%* 0.30%*
Supplemental data
Net assets, end of period (000 omitted) $66,464 $66,381
Portfolio turnover 11% 6%
</TABLE>
* Computed on an annualized basis.
** Per share amounts less than $0.01.
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to January 31, 1998.
(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)
WesMark West Virginia Municipal Bond Fund
Notes to Financial Statements
July 31, 1998 (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 four 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 portfolios 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 State of West
Virginia.
On April 14, 1997, the Fund acquired a portfolio of a common trust fund managed
by the Adviser. Theacquisition was accomplished by a tax-free exchange of
6,000,315 shares of the Fund valued at $60,003,151.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in thepreparation 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.
WesMark West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
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>
Six Months Ended Period Ended
July 31, 1998 January 31, 1998(a)
<S> <C> <C>
Shares sold 514,665 7,013,427
Shares issued to shareholders in
payment of distributions declared 9,023 18,188
Shares redeemed (490,391) (587,622)
Net change resulting from share transactions 33,297 6,443,993
</TABLE>
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to January 31, 1998.
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 Services Company ("FServ") provides the Fund
with certain administrative personnel and services. The fee paid to FServ 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, 1998, the Fund did not incur a distribution services fee.
WesMark West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
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, 1998, the Fund did not
incur a shareholder services fee.
Transfer and Dividend Disbursing Agent Fees and Expenses--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.
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.
Interfund Transactions--During the period ended July 31, 1998, the Fund
engaged in purchase and sale transactions with mutual funds and/or 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 $9,991,234 and $9,227,546, respectively.
Organizational Expenses--Organizational expenses of $6,169 were borne
initially by the Administrator. The Fund has reimbursed the Administrator
for these expenses. These expenses have been deferred and are being
amortized over the five-year period following the Fund's effective date. For
the period ended July 31, 1998, the Fund expensed $308 of organizational
expenses.
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, 1998, the Fund owned 0.05% of the outstanding shares of
the Federated Tax-Free Obligations Fund, which is distributed by an
affiliate of the Fund's distributor.
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, 1998, were as follows:
<TABLE>
<S> <C>
Purchases $7,375,206
Sales $7,146,613
</TABLE>
WesMark West Virginia Municipal Bond Fund
- --------------------------------------------------------------------------------
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, 1998, 62% 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 26% of total investments.
7. Year 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
Trustees Officers
- --------------------------------------------------------------------------------
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
Nicholas P. Constantakis President and Treasurer
William J. Copeland J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. John W. McGonigle
Edward L. Flaherty, Jr. Executive Vice President and Secretary
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
John E. Murray, Jr. C. Christine Thomson
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts C. Todd Gibson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[LOGO OF WESMARK WEST VIRGINIA MUNICIPAL BOND FUND]
Semi-Annual Report
Dated July 31, 1998
[LOGO] FEDERATED INVESTORS [LOGO OF WESBANCO WHEELING]
Investment Adviser
A Subsidiary of WesBanco, Inc.
Edgewood Services, Inc., Distributor
Cusip 951025105
G02160-07 (9/98)
[LOGO OF WESMARK GROWTH FUND]
Growth
Fund
Semi-Annual Report
July 31, 1998
[LOGO OF WESMARK FUNDS]
President's Message
Dear Shareholder:
I am pleased to present the second Semi-Annual Report to shareholders for
WesMark Growth Fund. This report covers the six-month reporting period from
February 1, 1998 through July 31, 1998. It gives you a complete picture of the
fund's operations, which include a complete list of fund holdings and the
financial statements.
WesMark Growth Fund is managed to help your money grow over time. To pursue that
objective, the fund invests in a diversified portfolio of stocks selected for
their long-term potential to provide above-average returns. At the end of the
reporting period, the fund's holdings included such well-known companies as
Deere & Co., Hewlett-Packard Co., Honeywell, Inc., Motorola, Inc., Mylan
Laboratories, Inc., and Sears, Roebuck & Co.
During the first six months of its current fiscal year, the fund produced a
total return of 4.94%.* Contributing to the total return were a share price
increase of $0.31, income totaling $0.04, and capital gains totaling $0.22 per
share. On the last day of the reporting period, the fund's assets reached $122
million.
Thank you for pursuing your longer-term financial goals through the WesMark
Growth Fund.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
September 15, 1998
* Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
WesMark Growth Fund
Portfolio of Investments
July 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
Common Stocks--81.0%
<S> <C> <C>
Cable Television--1.0%
25,000 (a)MediaOne Group, Inc. $1,207,812
Computer Services--8.0%
85,000 Electronic Data Systems Corp. 2,990,938
155,000 First Data Corp. 4,485,312
75,000 HBO & Co. 2,210,156
Total 9,686,406
Computer Software--1.2%
30,000 (a)Network Associates, Inc. 1,430,625
Computers - Mini--2.7%
60,000 Hewlett-Packard Co. 3,330,000
Diversified Operations--3.0%
85,000 Allied-Signal, Inc. 3,697,500
Electronic Components--4.2%
90,000 (a)EMC Corp. Mass 4,410,000
50,000 (a)Silicon Valley Group, Inc. 696,875
Total 5,106,875
Electronic Components - Semiconductor--7.0%
110,000 (a)Adaptec, Inc. 1,278,750
20,000 Motorola, Inc. 1,045,000
105,000 Texas Instruments, Inc. 6,227,813
Total 8,551,563
Healthcare Services--4.0%
120,000 (a)HEALTHSOUTH Corp. 3,015,000
78,750 (a)Health Management Association, Class A 1,850,625
Total 4,865,625
</TABLE>
WesMark Growth Fund
<TABLE>
<CAPTION>
Shares Value
Common Stocks--continued
<S> <C> <C>
Insurance Property & Casualty--0.6%
10,000 Chubb Corp. $ 733,750
Insurance-Life & Health--0.8%
20,000 Reliastar Financial Corp. 992,500
Instruments - Control--2.7%
40,000 Honeywell, Inc. 3,352,500
Machinery-Farm--3.1%
95,000 Deere & Co. 3,817,812
Medical Products & Supply--0.3%
15,000 Mylan Laboratories, Inc. 407,812
Networking Products--4.7%
60,000 (a)Cisco Systems, Inc. 5,745,000
Oil & Gas Equipment & Services--1.7%
65,000 Williams Cos., Inc. (The) 2,084,063
Oil & Gas Drilling--2.1%
65,000 Transocean Offshore, Inc. 2,563,437
Oil Comp-Exploration & Production--5.9%
100,000 Burlington Resources, Inc. 3,625,000
150,000 Enron Oil & Gas Co. 2,381,250
141,000 Lomak Petroleum, Inc. 1,092,750
Total 7,099,000
Oil Field Services--3.6%
160,000 (a)Pride International, Inc. 1,900,000
85,000 Tidewater, Inc. 2,465,000
Total 4,365,000
Oil - Integrated--5.1%
140,000 Phillips Petroleum Co. 6,186,250
Retail - Major Department Stores--1.2%
30,000 Sears, Roebuck & Co. 1,522,500
</TABLE>
WesMark Growth Fund
<TABLE>
<CAPTION>
Shares or
Principal
Amount Value
Common Stocks--continued
<S> <C> <C>
Retail - Miscellaneous--1.2%
45,000 (a)Staples, Inc. $1,479,375
Retail - Regional Department--0.6%
25,000 (a)Proffitts, Inc. 787,500
Telecommunications - Cellular--1.9%
40,000 (a)Airtouch Communications, Inc. 2,352,500
Telecommunications Equipment--5.4%
135,000 Scientific-Atlanta, Inc. 3,248,438
120,000 Telefonaktiebolaget LM Ericsson, Class B, ADR 3,322,500
Total 6,570,938
Telecommunications Services--3.4%
100,000 SBC Communications, Inc. 4,087,500
Textile Apparel--1.4%
30,000 (a)Tommy Hilfiger Corp. 1,681,875
Transportation-Rail--4.2%
50,000 Burlington Northern Santa Fe 5,146,875
Utility-Telephone--0.0%
682 U.S. West, Inc. 36,402
Total Common Stocks (identified cost $88,910,391) 98,888,995
(b) Commercial Paper--8.2%
Finance - Automotive--4.1%
$5,000,000 Ford Motor Credit Co., 5.62%, 8/7/1998 4,995,400
Finance - Commercial--4.1%
5,000,000 General Electric Capital Corp., 5.63%, 8/6/1998 4,996,160
Total Commercial Paper (at amortized cost) 9,991,560
</TABLE>
WesMark Growth Fund
<TABLE>
<CAPTION>
Principal
Amount
or Shares Value
(b) Government Agencies--11.0%
<S> <C> <C>
$1,500,000 Federal Farm Credit Bank, Discount Note, 5.52%, 8/18/1998 $1,496,154
1,700,000 Federal Farm Credit Bank, Discount Note, 5.53%, 8/28/1998 1,693,077
4,000,000 Federal Home Loan Bank, Discount Note, 5.49%, 8/14/1998 3,992,214
6,250,000 Federal Home Loan Bank, Discount Note, 5.50%, 9/18/1998 6,205,167
Total Government Agencies (at amortized cost) 13,386,612
Mutual Funds--0.4%
481,089 U.S. Treasury Cash Reserves Fund (at net asset value) 481,089
Total Investments (identified cost $112,769,652)(c) $ 122,748,256
</TABLE>
(a) Non-income producing security.
(b) Each issue shows the rate of discount at the time of purchase. (c) The cost
of investments for federal tax purposes amounts to $112,769,652.
The net unrealized appreciation of investments on a federal tax basis
amounts to $9,978,604 which is comprised of $19,713,689 appreciation and
$9,735,085 depreciation at July 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($121,991,795) at July 31, 1998.
The following acronym is used throughout this portfolio:
ADR--American Depository Receipt
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Statement of Assets and Liabilities
July 31, 1998 (unaudited)
<TABLE>
<S> <C> <C>
Assets:
Total investments in securities, at value (identified and tax cost $112,769,652) $122,748,256
Income receivable 127,492
Deferred organizational costs 4,76 6
Total assets 122,880,514
Liabilities:
Payable for investments purchased $ 819,038
Accrued expenses 69,681
Total liabilities 888,719
Net Assets for 10,640,866 shares outstanding $121,991,795
Net Assets Consist of:
Paid in capital $101,959,823
Net unrealized appreciation of investments 9,978,604
Accumulated net realized gain on investments 9,896,722
Undistributed net investment income 156,646
Total Net Assets $121,991,795
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$121,991,795 / 10,640,866 shares outstanding $11.46
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Statement of Operations
Six Months Ended July 31, 1998 (unaudited )
<TABLE>
<S> <C> <C>
Investment Income:
Dividends $ 497,153
Interest 662,513
Total income 1,159,666
Expenses:
Investment advisory fee $473,747
Administrative personnel and services fee 92,168
Custodian fees 11,999
Transfer and dividend disbursing agent fees and expenses 24,749
Directors'/Trustees' fees 1,686
Auditing fees 7,890
Legal fees 1,160
Portfolio accounting fees 24,538
Share registration costs 13,805
Printing and postage 6,526
Insurance premiums 1,686
Miscellaneous 2,844
Total expenses 662,798
Net investment income 496,868
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 9,896,998
Net change in unrealized appreciation of investments (4,773,900)
Net realized and unrealized gain on investments 5,123,098
Change in net assets resulting from operations $ 5,619,966
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Period Ended
July 31, 1998 January 31, 1998*
<S> <C> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 496,868 $ 826,665
Net realized gain on investments ($9,896,998 and $7,637,919,
respectively, as computed for federal tax purposes) 9,896,998 7,637,919
Net change in unrealized appreciation/depreciation (4,773,900) 14,752,504
Change in net assets resulting from operations 5,619,966 23,217,088
Distributions to Shareholders--
Distributions from net investment income (407,213) (759,674)
Distributions from net realized gains (2,256,264) (5,381,931)
Change in net assets resulting from
distributions to shareholders (2,663,477) (6,141,605)
Share Transactions--
Proceeds from sale of shares 9,557,554 97,496,587
Net asset value of shares issued to shareholders in payment of
distributions declared 2,291,402 5,383,211
Cost of shares redeemed (6,955,784) (5,913,147)
Change in net assets resulting from share transactions 4,893,172 96,966,651
Change in net assets 7,849,661 114,042,134
Net Assets:
Beginning of period 114,142,134 100,000
End of period (including undistributed net investment
income of $156,646 and $66,991, respectively) $121,991,795 $114,142,134
</TABLE>
* For the period from April 14, 1997 (date of initial public investment) to
January 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended
(unaudited) Period Ended
July 31, January 31,
1998 1998(a)
<S> <C> <C>
Net asset value, beginning of period $ 11.15 $ 10.00
Income from investment operations
Net investment income 0.05 0.09
Net realized and unrealized gain (loss) on investments 0.52 1.71
Total from investment operations 0.57 1.80
Less distributions
Distributions from net investment income (0.04) (0.08)
Distributions from net realized gain on investments (0.22) (0.57)
Total distributions (0.26) (0.65)
Net asset value, end of period $ 11.46 $ 11.15
Total return(b) 4.94% 18.24%
Ratios to average net assets
Expenses 1.05%* 1.14%*
Net investment income 0.79%* 0.99%*
Expense waiver/reimbursement(c) -- 0.00%*
Supplemental data
Net assets, end of period (000 omitted) $121,992 $114,142
Average commission rate paid(d) $ 0.0493 $ 0.0148
Portfolio turnover 25% 58%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 14, 1997 (date of initial
public investment) to January 31, 1998.
(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.
(d) 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)
WesMark Growth Fund
Notes to Financial Statements
July 31, 1998 (unaudited)
l. 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 four portfolios. The financial statements included herein are
only those of WesMark Growth Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolios 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.
On April 14, 1997, the Fund acquired two portfolios of common trust funds
managed by the Adviser. The acquisition was a tax-free exchange 8,455,654 shares
of the Fund valued at $84,556,539.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of their 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>
Six Months Ended Period Ended
July 31, 1998 January 31, 1998(a)
<S> <C> <C>
Shares sold 784,773 10,251,699
Shares issued to shareholders in
payment of distributions declared 189,981 495,313
Shares redeemed (569,445) (521,455)
Net change resulting from share transactions 405,309 10,225,557
</TABLE>
(a) Reflects operations for period from April 14, 1997 (date of public
investment) to January 31, 1998.
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 Services Company ("FServ") provides the Fund
with certain administrative personnel and services. The fee paid to FServ 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, annually, to compensate Edgewood Services, Inc. For the period ended
July 31, 1998, 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, 1998, the Fund did not incur a
shareholder services fee.
Transfer and Dividend Disbursing Agent Fees and Expenses--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, 1998, the Fund
engaged in purchase and sale transactions with mutual funds and/or 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 $26,720,238 and $27,153,113, respectively.
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
transactions charges.
Organizational Expenses--Organizational expenses of $5,607 were borne
initially by the administrator. The Fund has reimbursed the administrator for
these expenses. These expenses have been deferred and are being amortized
over the five year period following the Fund's effective date.
Other Affiliated Parties and Transactions--Pursuant to an exemptive order
issued by the SEC, the Fund may invest in the U.S. Treasury Cash Reserves
Fund, which is distributed by an affiliate of the Fund's distributor. As of
July 31, 1998, the Fund owned 0.02% of outstanding shares of 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. Year 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
6. Investment Transactions
Purchases and sales of investments, excluding short-term securities, for the
period ended July 31, 1998, were as follows:
<TABLE>
<S> <C>
Purchases $27,481,426
Sales $26,383,997
</TABLE>
Trustees Officers
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
Nicholas P. Constantakis President and Treasurer
William J. Copeland J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. John W. McGonigle
Edward L. Flaherty, Jr. Executive Vice President and Secretary
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
John E. Murray, Jr. C. Christine Thomson
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts C. Todd Gibson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses, and other information.
[LOGO OF WESMARK GROWTH FUND]
Semi-Annual Report
Dated July 31, 1998
[Logo] FEDERATED INVESTORS
Edgewood Services, Inc., Distributor
Cusip 951025204
G02160-08 (9/98)
[LOGO OF WESBANCO WHEELING]
Investment Adviser
A Subsidiary of WesBanco, Inc.
[LOGO OF WESMARK BALANCED FUND]
Balanced
Fund
Semi-Annual Report
July 31, 1998
[LOGO OF WESMARK FUNDS]
PRESIDENT'S MESSAGE
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the first Semi-Annual Report to shareholders for WesMark
Balanced Fund. This report covers the period from April 20, 1998--the date of
initial public investment--to July 31, 1998. It gives you a complete picture of
the fund's operations, which include a complete list of holdings and the
financial statements.
WesMark Balanced Fund is managed to pursue capital appreciation and income by
investing in a diversified portfolio of stocks and bonds. At the end of the
period, the fund's $55 million portfolio was invested primarily in high-quality
common and preferred stocks (46.7%) and U.S. Treasury notes and bonds, U.S.
government agency bonds, and investment-grade corporate bonds (47.3%).
During the limited period of operation covered by this report, the fund paid
monthly income dividends totaling $0.09 per share. Due to market conditions that
impacted the value of the fund's portfolio, the net asset value decreased from
$10.00 to $9.68--and accounted for the fund's (2.28%) total return.* Short-term
volatility is a natural consequence of investing in stocks and bonds. While,
over the long term, these key financial markets have historically provided
investors with highly positive returns, the fund's initial period of operation
coincided with a volatile stock market.
Thank you for selecting WesMark Balanced Fund to participate in the growth and
income potential of stocks and bonds. We look forward to keeping you up-to-date
on the fund's progress.
Sincerely,
[LOGO]
Edward C. Gonzales
President
September 15, 1998
* Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their
original cost.
WesMark Balanced Fund
Portfolio of Investments
July 31, 1998 (unaudited)
<TABLE>
<CAPTION>
Shares Value
<S> <C>
Common Stocks--43.6%
Computer Services--0.6%
10,000 Electronic Data Systems Corp. $ 351,875
Diversified Operations--5.5%
30,000 Allied-Signal, Inc. 1,305,000
20,000 General Electric Co. 1,786,250
Total 3,091,250
Drugs & Healthcare--3.3%
15,000 Merck & Co., Inc. 1,849,687
Electronic Components-Semiconductor--3.2%
30,000 Texas Instruments, Inc. 1,779,375
Insurance Property & Casualty--2.0%
15,000 Chubb Corp. 1,100,625
Instruments-Control--1.5%
10,000 Honeywell, Inc. 838,125
Machinery-Farm--2.5%
35,000 Deere & Co. 1,406,562
Oil & Gas Equipment & Services--1.7%
30,000 Williams Cos., Inc. (The) 961,875
Oil Comp-Exploration & Production--1.3%
20,000 Burlington Resources, Inc. 725,000
Oil Field Services--1.6%
30,000 Tidewater, Inc. 870,000
Oil-Integrated--6.5%
20,000 Amoco Corp. 835,000
8,000 Atlantic Richfield Co. 542,000
50,000 Phillips Petroleum Co. 2,209,375
Total 3,586,375
Retail-Major Department Stores--0.9%
10,000 Sears, Roebuck & Co. $ 507,500
Telecommunication Services--0.7%
10,000 SBC Communications, Inc. 408,750
Telecommunications Equipment--1.7%
10,000 Lucent Technologies, Inc. 924,375
Transportation-Rail--0.9%
5,000 Burlington Northern Santa Fe 514,687
Utility-Electric Power--6.7%
5,000 Central & SouthWest Corp. 127,187
55,000 DPL, Inc. 938,438
15,666 Duke Energy Corp. 894,920
25,000 GPU, Inc. 893,750
30,000 SCANA Corp. 864,375
Total 3,718,670
Utility-Telephone--2.0%
20,000 GTE Corp. 1,087,500
Utlility-Gas Distribution--1.0%
30,000 AGL Resources, Inc. 564,375
Total Common Stocks (identified cost
$18,175,364) 24,286,606
Preferred Stocks--3.1%
Finance--1.8%
15,000 Merrill Lynch Capital Trust III, Pfd. 374,063
25,000 Merrill Lynch Capital Trust IV, Pfd. 629,688
Total 1,003,751
Telecommunications-Cellular--0.7%
5,000 Airtouch Communications, Inc., Conv. Pfd.,
Series C, $2.13 419,375
Utilities--0.6%
7,000 MCN Energy Corp., PRIDES, $8.00 315,875
Total Preferred Stocks (identified cost
$1,636,719) 1,739,001
<CAPTION>
Shares or
Principal
Amount Value
<S> <C>
Corporate Bonds--0.6%
$250,000 Rite Aid Corp., 5.25%, 9/15/2002
(identified cost $291,875) $ 323,125
Government Agencies--23.1%
Federal Farm Credit Bank--5.1%
700,000 6.48%, 4/26/2001 713,798
2,000,000 7.10%, 11/12/2002 2,099,228
Total 2,813,026
Federal Home Loan Bank--9.1%
1,000,000 6.67%, 5/10/2001 1,025,544
2,000,000 6.865%, 10/23/2007 2,021,298
2,000,000 7.105%, 5/6/2002 2,020,586
Total 5,067,428
Federal Home Loan Mortgage Corporation--5.3%
1,938,618 6.50%, 3/1/2013 1,954,107
1,000,000 6.846%, 10/10/2007 1,013,442
Total 2,967,549
Federal National Mortgage Association--3.6%
2,000,000 6.59%, 5/21/2008 2,016,778
Total Government Agencies (identified cost
$12,742,884) 12,864,781
U.S. Treasury Obligations--23.6%
U.S. Treasury Bond--3.8%
2,000,000 7.50%, 5/15/2002 2,130,626
U.S. Treasury Notes--19.8%
1,500,000 6.00%, 8/15/1999 1,507,970
2,000,000 6.875%, 5/15/2006 2,160,002
1,000,000 7.125%, 10/15/1998 1,004,063
2,000,000 7.25%, 8/15/2004 2,171,876
1,000,000 7.50%, 11/15/2001 1,058,126
1,000,000 8.50%, 11/15/2000 1,063,751
<CAPTION>
Principal
Amount
or Shares Value
<S> <C>
U.S. Treasury Obligations--continued
U.S. Treasury Notes--continued
$2,000,000 8.50%, 2/15/2000 $ 2,087,502
Total 11,053,290
Total U.S. Treasury Obligations (identified
cost $12,617,138) 13,183,916
Commercial Paper--3.6%
2,000,000 (a)Ford Motor Credit Co., 5.62%, 8/7/1998 (at amortized cost)
1,998,160
Mutual Fund--1.6%
865,293 U.S. Treasury Cash Reserves Fund
(at net asset value) 865,293
Total Investments (identified cost
$48,327,433)(b) $55,260,882
</TABLE>
(a) Discount rate at time of purchase.
(b) The cost of investments for federal tax purposes amounts to $48,327,433.
The net unrealized appreciation of investments on a federal tax basis
amounts to $6,933,449 which is comprised of $7,514,531 appreciation and
$581,082 depreciation at July 31,1998.
Note: The categories of investments are shown as a percentage of net assets
($55,753,353) at July 31, 1998.
The following acronym is used throughout this portfolio:
PRIDES--Preferred Redeemable Increased Dividend Equity Securities
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Statement of Assets and Liabilities
July 31, 1998 (unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Total investments in securities, at value (identified and tax cost $48,327,433) $ 55,260,882
Cash 1,500
Income receivable 525,984
Total assets 55,788,366
Liabilities:
Accrued expenses 35,013
Net Assets for 5,760,516 shares outstanding $ 55,753,353
Net Assets Consist of:
Paid in capital $ 48,059,444
Net unrealized appreciation of investments 6,933,449
Accumulated net realized gain on investments 718,248
Undistributed net investment income 42,212
Total Net Assets $ 55,753,353
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$55,753,353 5,760,516 shares outstanding $9.68
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Statement of Operations
Period Ended July 31, 1998 (a) (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Investment Income:
Dividends $ 184,034
Interest 567,405
Total income 751,439
Expenses:
Investment advisory fee $ 116,009
Administrative personnel and services fee 22,096
Custodian fees 5,327
Transfer and dividend disbursing agent fees and expenses 12,374
Directors'/Trustees' fees 2,939
Auditing fees 6,187
Legal fees 2,630
Portfolio accounting fees 18,902
Share registration costs 13,302
Printing and postage 5,259
Insurance premiums 1,547
Miscellaneous 1,702
Total expenses 208,274
Waivers --
Waiver of investment advisory fee (23,202)
Net expenses 185,072
Net investment income 566,367
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 718,248
Net change in unrealized appreciation of investments 6,933,449
Net realized and unrealized gain on investments 7,651,697
Change in net assets resulting from operations $8,218,064
</TABLE>
(a) For the period from April 20, 1998 (date of initial public investment) to
July 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Period Ended
(unaudited)
July 31, 1998(a)
<S> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 566,367
Net realized gain (loss) on investments ($718,248 as computed for federal
tax purposes) 718,248
Net change in unrealized appreciation/depreciation 6,933,449
Change in net assets resulting from operations 8,218,064
Distributions to Shareholders--
Distributions from net investment income (524,155)
Share Transactions--
Proceeds from sale of shares 49,550,718
Net asset value of shares issued to shareholders in payment of distributions declared 11,133
Cost of shares redeemed (1,502,407)
Change in net assets resulting from share transactions 48,059,444
Change in net assets 55,753,353
Net Assets:
Beginning of period --
End of period (including undistributed net investment income of $42,212) $55,753,353
</TABLE>
(a) For the period from April 20, 1998 (date of initial public investment) to
July 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Financial Highlights
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period Ended
(unaudited)
July 31,
1998(a)
<S> <C>
Net asset value, beginning of period $ 10.00
Income from investment operations
Net investment income 0.10
Net realized and unrealized gain (loss) on investments (0.33)
Total from investment operations (0.23)
Less distributions
Distributions from net investment income (0.09)
Net asset value, end of period $ 9.68
Total return (b) (2.28%)
Ratios to average net assets
Expenses 1.20%*
Net investment income 3.66%*
Expense waiver/reimbursement (c) 0.15%*
Supplemental data
Net assets, end of period (000 omitted) $55,753
Average commission rate paid (d) $0.0566
Portfolio turnover 0%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to July 31, 1998.
(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.
(d) 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)
WesMark Balanced Fund
Notes to Financial Statements
July 31, 1998 (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 four portfolios. The financial statements included herein are
only those of WesMark Balanced Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolios 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 capital appreciation and income.
On April 20, 1998, the Fund acquired a portfolio of a common trust fund managed
by the Adviser. The acquisition was accomplished by a tax-free exchange of
5,366,055 shares of the Fund valued at $53,660,556.
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 Valuation-- U.S. government securities, listed corporate bonds, and
other fixed income and asset-backed securities are generally valued at the mean
of the latest bid and asked price as furnished by an independent pricing
service. 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, 1998(a)
<S> <C>
Shares sold 5,911,551
Shares issued to shareholders in payment of distributions declared 1,130
Shares redeemed (152,165)
Net change resulting from share transactions 5,760,516
</TABLE>
(a) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to July 31, 1998.
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. 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 Services Company ("FServ") provides the Fund
with certain administrative personnel and services. The fee paid to FServ 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, annually, to compensate Edgewood Services, Inc. For the period ended
July 31, 1998, 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, 1998, the Fund did not
incur a shareholder services fee.
Transfer and Dividend Disbursing Agent Fees and Expenses--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.
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.
Interfund Transactions--During the period ended July 31, 1998, the Fund
engaged in purchase and sale transactions with mutual funds and/or 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 $54,153,503 and $14,468,093, respectively.
$38,797,069 of the purchase transactions were attributable to a conversion
of the assets of a common trust fund into the Fund.
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. As of July 31, 1998, the Fund owned 0.04% of the outstanding
shares of the Federated U.S. Treasury Cash Reserves Fund, which is
distributed by an affiliate of the Fund's distributor.
General--Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. Year 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
6. Investment Transactions
Purchases and sales of investments, excluding short-term and conversion
securities, for the period ended July 31, 1998, were as follows:
Purchases $11,162,871
Sales $ 34,554
Trustees Officers
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
Nicholas P. Constantakis President and Treasurer
William J. Copeland J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. John W. McGonigle
Edward L. Flaherty, Jr. Executive Vice President and Secretary
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
John E. Murray, Jr. C. Christine Thomson
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts C. Todd Gibson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
[LOGO OF WESMARK BALANCED FUND]
Semi-Annual Report
Dated July 31, 1998
[LOGO] FEDERATED INVESTORS [LOGO OF WESBANCO WHEELING]
Edgewood Services, Inc. Distributor Investment Adviser
A Subsidiary of WesBanco, Inc.
Cusip 951025303
G02160-10 (9/98)
[WESMARK BOND FUND LOGO]
Bond Fund
Semi-Annual Report
July 31, 1998
[WESMARK FUNDS LOGO]
PRESIDENT'S MESSAGE
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the first Semi-Annual Report to shareholders for WesMark
Bond Fund. This report covers the period from April 20, 1998--the date of
initial public investment--to July 31, 1998. It gives you a complete picture of
the fund's operations, which include a complete list of fund holdings and the
financial statements.
WesMark Bond Fund is managed to help your money earn a high level of current
income by investingina diversified portfolio of high-quality bonds. At the end
of the period, the fund's $104 million portfolio was invested primarily in
government agency bonds (90.1%) and investment-grade corporatebonds (6.8%).
During the initial period of operation covered by this report, the fund's
monthly income dividends totaled $0.15 per share. Its net asset value increased
$0.02. The income and net asset value increase resulted in a 1.75% total
return.*
Thank you for selecting WesMark Bond Fund to help your money earn income through
a diversified, professionally managed portfolio of high-quality bonds.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
September 15, 1998
*Performance quoted represents past performance and is not indicative of future
results. Investment return and principal value will fluctuate, so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
WesMark Bond Fund
Portfolio of Investments
July 31, 1998 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value
- --------------------- -------------------------------------------------------------------------------------- -----------
<S> <C> <C>
Corporate Bonds--6.8%
Basic Materials--1.0%
$1,000,000 Worthington Industries, Inc., 7.125%, 5/15/2006 $ 1,047,806
Finance--1.7%
750,000 Merrill Lynch & Co., Inc., Note, 7.00%, 1/15/2007 787,440
1,000,000 National City Corp., Sub. Note, 6.625%, 3/1/2004 1,026,960
Total 1,814,400
Finance - Automotive--1.5%
500,000 Ford Motor Credit Corp., Note, 8.375%, 1/15/2000 516,027
1,000,000 General Motors Acceptance Corp., Note, 7.00%, 3/1/2000 1,013,923
Total 1,529,950
Instruments-Control--1.0%
1,000,000 Honeywell, Inc., 7.00%, 3/15/2007 1,052,241
Oil--0.6%
500,000 Union Oil of California, 9.125%, 2/15/2006 583,714
Retail--1.0%
1,000,000 Penney (J.C.) Co., Inc., Note, 7.60%, 4/1/2007 1,081,643
Total Corporate Bonds (identified cost $6,761,503) 7,109,754
Government Agencies--89.4%
Federal Farm Credit Bank--4.8%
5,000,000 6.46%, 4/2/2008 5,004,640
(a)Federal Farm Credit Bank, Discount Note--8.6%
4,000,000 5.51%, 8/11/1998 3,993,978
5,000,000 5.51%, 8/25/1998 4,981,967
Total 8,975,945
Federal Home Loan Bank--19.5%
5,820,000 5.855%, 2/26/1999 5,825,290
2,000,000 5.97%, 12/15/2005 2,022,428
2,000,000 6.39%, 7/5/2005 2,073,994
3,000,000 6.865%, 10/23/2007 3,031,947
1,450,000 7.26%, 10/30/2002 1,460,981
1,570,000 7.46%, 9/9/2004 1,704,602
2,000,000 7.555%, 2/27/2002 2,119,232
2,000,000 7.87%, 10/20/2004 2,216,458
Total 20,454,932
Federal Home Loan Mortgage Corporation--35.3%
3,000,000 6.39%, 7/2/2003 2,989,791
3,877,236 6.50%, 3/1/2013 3,908,215
4,874,564 6.50%, 3/1/2013 4,913,512
4,917,009 6.50%, 5/1/2013 4,956,296
4,000,000 6.69%, 4/23/2008 3,982,312
4,000,000 6.846%, 10/10/2007 4,053,768
3,200,931 7.00%, 7/1/2011 3,266,487
2,252,246 7.00%, 11/1/2011 2,298,372
1,577,287 7.00%, 11/1/2011 1,609,590
751,269 7.00%, 1/1/2012 766,654
4,124,452 7.00%, 3/1/2018 4,203,642
Total 36,948,639
Federal National Mortgage Association--21.2%
5,000,000 6.37%, 3/3/2005 4,994,880
2,000,000 6.45%, 2/14/2002 1,981,574
2,969,501 6.50%, 5/1/2018 2,977,252
2,000,000 6.54%, 10/3/2005 2,088,372
2,000,000 6.59%, 5/21/2008 2,016,778
3,000,000 6.70%, 5/28/2008 2,998,377
1,000,000 6.85%, 4/5/2004 1,051,616
Federal National Mortgage Association--continued
1,000,000 7.00%, 9/24/2007 1,012,324
1,958,425 7.00%, 2/1/2018 1,994,813
1,000,000 7.55%, 6/10/2004 1,014,998
Total 22,130,984
Total Government Agencies (identified cost $92,460,406) 93,515,140
Preferred Stocks--2.3%
Finance--2.3%
50,000 ML Preferred Capital Trust III, Pfd. 1,246,875
25,000 Merrill Lynch Capital Trust IV, Pfd. 629,687
20,500 Reliastar Financing I, Pfd. 522,750
Total Preferred Stocks (identified cost $2,389,038) 2,399,312
Mutual Funds--0.7%
773,878 Federated Prime Obligations Fund (at net asset value) 773,878
Total Investments (identified cost $102,384,825)(b) $103,798,084
</TABLE>
(a) Each issue shows the rate of discount at the time of purchase. (b) The cost
of investments for federal tax purposes amounts to $102,384,825.
The net unrealized appreciation of investments on a federal tax basis
amounts to $1,413,259 which is comprised of $1,430,027 appreciation and
$16,768 depreciation at July 31, 1998.
Note: The categories of investments are shown as a percentage of net assets
($104,638,499) at July 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund
Statement of Assets and Liabilities
July 31, 1998 (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Assets:
Total investments in securities, at value (identified and tax cost
$102,384,825) $103,798,084
Income receivable 1,367,949
Total assets 105,166,033
Liabilities:
Income distribution payable $ 487,389
Accrued expenses 40,145
Total liabilities 527,534
Net Assets for 10,446,748 shares outstanding $104,638,499
Net Assets Consist of:
Paid in capital $103,163,011
Net unrealized appreciation of investments 1,413,259
Accumulated net realized gain on investments 62,229
Total Net Assets $104,638,499
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$104,638,499 ^ 10,446,748 shares outstanding $10.02
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund
Statement of Operations
Period Ended July 31, 1998 (unaudited)(a)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
Investment Income:
Dividends $ 32,381
Interest 1,773,230
Total income 1,805,611
Expenses:
Investment advisory fee $ 167,487
Administrative personnel and services fee 39,877
Custodian fees 6,700
Transfer and dividend disbursing agent fees
and expenses 12,003
Directors'/Trustees' fees 2,791
Auditing fees 5,862
Legal fees 2,512
Portfolio accounting fees 20,098
Share registration costs 18,144
Printing and postage 5,304
Insurance premiums 1,675
Miscellaneous 1,675
Total expenses 284,128
Waivers --
Waiver of investment advisory fee (27,914)
Net expenses 256,214
Net investment income 1,549,397
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments 62,229
Net change in unrealized appreciation of investments 1,413,259
Net realized and unrealized gain on investments 1,475,488
Change in net assets resulting from operations $3,024,885
</TABLE>
(a) For the period from April 20, 1998 (date of initial public investment) to
July 31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended
(unaudited)
<S> <C>
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 1,549,397
Net realized gain on investments ($62,229 as computed for federal tax purposes) 62,229
Net change in unrealized appreciation/depreciation 1,413,259
Change in net assets resulting from operations 3,024,885
Distributions to Shareholders--
Distributions from net investment income (1,549,397)
Share Transactions--
Proceeds from sale of shares 105,746,346
Net asset value of shares issued to shareholders in payment of distributions declared 206,981
Cost of shares redeemed (2,790,316)
Change in net assets resulting from share transactions 103,163,011
Change in net assets 104,638,499
Net Assets:
Beginning of period ---
End of period $104,638,499
</TABLE>
* For the period from April 20, 1998 (date of initial public investment) to July
31, 1998.
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund
Financial Highlights
- --------------------------------------------------------------------------------
(For a share outstanding throughout the period)
<TABLE>
<CAPTION>
Period Ended
(unaudited)
July 31,
1998(a)
<S> <C>
Net asset value, beginning of period $ 10.00
Income from investment operations
Net investment income 0.15
Net realized and unrealized gain on investments 0.02
Total from investment operations 0.17
Less distributions
Distributions from net investment income (0.15)
Net asset value, end of period $ 10.02
Total return (b) 1.75%
Ratios to average net assets
Expenses 0.92%*
Net investment income 5.55%*
Expense waiver/reimbursement (c) 0.10%*
Supplemental data
Net assets, end of period (000 omitted) $104,638
Portfolio turnover 5%
</TABLE>
* Computed on an annualized basis.
(a) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to July 31, 1998.
(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)
WesMark Bond Fund
Notes to Financial Statements
- --------------------------------------------------------------------------------
July 31, 1998 (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 four portfolios. The financial statements included herein are
only those of WesMark Bond Fund (the "Fund"), a diversified portfolio. The
financial statements of the other portfolios 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 high current income consistent with preservation of capital.
On April 20, 1998, the Fund acquired two portfolios of common trust funds
managed by WesBanco Bank Wheeling, the Fund's adviser. The acquisition was a
tax-free exchange of 9,400,919 shares of the Fund valued at $94,009,198.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in thepreparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations -- U.S. government securities and listed corporate bonds
are generally valued at the mean of the latest bid and asked price as furnished
by an independent pricing service. 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, 1998(a)
<S> <C>
Shares sold 10,704,996
Shares issued to shareholders in payment of distributions declared 20,668
Shares redeemed (278,916)
Net change resulting from share transactions 10,446,748
</TABLE>
(a) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to July 31, 1998.
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 Services Company ("FServ") provides the Fund with
certain administrative personnel and services. The fee paid to FServ 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 annually, to
compensate Edgewood Services, Inc. For the period ended July 31, 1998, 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, 1998, the Fund did not incur a shareholder services fee.
Transfer and Dividend Disbursing Agent Fees and Expenses -- 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.
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.
Interfund Transactions -- During the period ended July 31, 1998, 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 Rule17a-7
under the Act amounting to $105,484,339 and $21,605,931 respectively.
$85,266,231 of these purchase transactions were attributable to a conversion of
the assets of two common trust funds into the Fund.
Other Affiliated Parties and Transactions -- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in the Federated Prime Obligations Fund,
which is distributed by an affiliate of the Fund's distributor. As of July 31,
1998 the Fund owned 0.01% of outstanding shares of Federated Prime Obligations
Fund.
General -- Certain of the Officers and Trustees of the Trust are Officers and
Directors or Trustees of the above companies.
5. Year 2000
Similar to other financial organizations, the Fund could be adversely affected
if the computer systems used by the Fund's service providers do not properly
process and calculate date-related information and data from and after January
1, 2000. The Fund's Adviser and Administrator are taking measures that they
believe are reasonably designed to address the Year 2000 issue with respect to
computer systems that they use and to obtain reasonable assurances that
comparable steps are being taken by each of the Fund's other service providers.
At this time, however, there can be no assurance that these steps will be
sufficient to avoid any adverse impact to the Fund.
6. Investment Transactions
Purchases and sales of investments, excluding short-term and conversion
securities, for the period ended July 31, 1998, were as follows:
Purchases $20,235,839
Sales $ 4,770,221
TRUSTEES OFFICERS
John F. Donahue John F. Donahue
Thomas G. Bigley Chairman
John T. Conroy, Jr. Edward C. Gonzales
Nicholas P. Constantakis President and Treasurer
William J. Copeland J. Christopher Donahue
James E. Dowd Executive Vice President
Lawrence D. Ellis, M.D. John W. McGonigle
Edward L. Flaherty, Jr. Executive Vice President and Secretary
Edward C. Gonzales Richard B. Fisher
Peter E. Madden Vice President
John E. Murray, Jr. C. Christine Thomson
Wesley W. Posvar Vice President and Assistant Treasurer
Marjorie P. Smuts C. Todd Gibson
Assistant Secretary
Mutual funds are not bank deposits or obligations, are not guaranteed by any
bank, and are not insured or guaranteed by the U.S. government, the Federal
Deposit Insurance Corporation, the Federal Reserve Board, or any other
government agency. Investment in mutual funds involves investment risk,
including the possible loss of principal.
This report is authorized for distribution to prospective investors only when
preceded or accompanied by the fund's prospectus which contains facts concerning
its objective and policies, management fees, expenses and other information.
[WESMARK BOND FUND LOGO]
Semi-Annual Report
Dated July 31, 1998
[FEDERATED INVESTORS LOGO] [WESBANCO WHEELING LOGO]
Edgewood Services, Inc., Distributor Investment Adviser
A Subsidiary of WesBanco, Inc.
Cusip 951025402
G02160-09 (9/98)
