Balanced Fund
Semi-Annual Report
July 31, 1999
[Logo of WesMark Balanced Fund]
[Logo of WesBanco Wheeling]
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for WesMark
Balanced Fund. This report covers the period from February 1, 1999 through July
31, 1999. It gives you a complete picture of the fund's operations, followed by
a complete listing 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
reporting period, were near 70% of the fund's $72.3 million portfolio was
invested primarily in high-quality common and preferred stocks. The rest of the
portfolio was invested across U.S. government agency bonds and investment-grade
corporate bonds.
During the limited period of operations covered by this report, the fund paid
monthly income dividends totaling $0.12 per share as well as capital gains
totaling $0.13 per share. The net asset value increased from $9.81 to $10.70.
Through the income and gain in net asset value, the fund achieved a 11.71%*
total return.
Thank you for selecting WesMark Balanced Fund to participate in the growth and
income potential of two key financial markets.
Sincerely,
/s/ Edward C. Gonzales
President
September 15, 1999
*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, 1999 (unaudited)
- --------------------------------------------------------------------------
Shares Value
- ------- ---------------------------------------------- ---------
Common Stocks--68.8%
- -------------------------------------------------------------
Banks- Major Regional -- 4.3%
----------------------------------------------
10,000 First Union Corp. $ 460,000
----------------------------------------------
50,000 PNC Bank Corp. 2,643,750
---------------------------------------------- -----------
Total 3,103,750
---------------------------------------------- -----------
Beverages-Soft--1.1%
----------------------------------------------
20,000 PepsiCo, Inc. 782,500
---------------------------------------------- -----------
Biomedical--1.1%
----------------------------------------------
10,000 Amgen, Inc. 768,750
---------------------------------------------- -----------
Chemical-Specialty--1.9%
----------------------------------------------
20,000 Corning, Inc. 1,400,000
---------------------------------------------- -----------
Chemicals-Diversified--1.0%
----------------------------------------------
10,000 Du Pont (E.I.) de Nemours & Co. 720,625
---------------------------------------------- -----------
Cosmetics & Toiletries--1.2%
----------------------------------------------
20,000 Gillette Co. 876,250
---------------------------------------------- -----------
Diversified Operations--9.5%
----------------------------------------------
30,000 Allied-Signal, Inc. 1,940,625
----------------------------------------------
45,000 General Electric Co. 4,905,000
---------------------------------------------- -----------
Total 6,845,625
---------------------------------------------- -----------
Drugs & Healthcare--2.3%
----------------------------------------------
25,000 Merck & Co., Inc. 1,692,187
---------------------------------------------- -----------
Electronic Components--1.7%
----------------------------------------------
20,000 EMC Corp. Mass 1,211,250
---------------------------------------------- -----------
Electronic Components-Semiconductor--6.0%
----------------------------------------------
30,000 Texas Instruments, Inc. 4,320,000
---------------------------------------------- -----------
Instruments-Control--5.0%
----------------------------------------------
30,000 Honeywell, Inc. 3,594,375
---------------------------------------------- -----------
Insurance Property & Casualty--2.0%
----------------------------------------------
5,000 American International Group, Inc. $ 580,625
----------------------------------------------
15,000 Chubb Corp. 897,188
---------------------------------------------- -----------
Total 1,477,813
---------------------------------------------- -----------
Insurance-Life--2.0%
----------------------------------------------
8,000 American General Corp. 619,000
----------------------------------------------
20,000 Nationwide Financial Services, Inc., 862,500
Class A
---------------------------------------------- -----------
Total 1,481,500
---------------------------------------------- -----------
Medical-Generic Drug--2.5%
----------------------------------------------
20,000 Bristol-Myers Squibb Co. 1,330,000
----------------------------------------------
15,000 Pfizer, Inc. 509,063
---------------------------------------------- -----------
Total 1,839,063
---------------------------------------------- -----------
Oil & Gas Equipment & Services--2.9%
----------------------------------------------
50,000 Williams Cos., Inc. (The) 2,103,125
---------------------------------------------- -----------
Oil Comp-Exploration & Production--3.2%
----------------------------------------------
40,000 Burlington Resources, Inc. 1,767,500
----------------------------------------------
25,000 Enron Oil & Gas Co. 534,375
---------------------------------------------- -----------
Total 2,301,875
---------------------------------------------- -----------
Oil Field Services--1.4%
----------------------------------------------
30,000 Tidewater, Inc. 991,875
---------------------------------------------- -----------
Oil - Integrated--7.4%
----------------------------------------------
8,000 Atlantic Richfield Co. 720,500
----------------------------------------------
90,000 Phillips Petroleum Co. 4,618,125
---------------------------------------------- -----------
Total 5,338,625
---------------------------------------------- -----------
Protection-Safety--1.4%
----------------------------------------------
10,000 Tyco International Ltd. 976,875
---------------------------------------------- -----------
Telecom-Wireless--1.0%
----------------------------------------------
3,447 Vodafone AirTouch PLC, ADR 725,699
---------------------------------------------- -----------
Telecommunications Equipment--0.8%
----------------------------------------------
15,000 Scientific-Atlanta, Inc. 547,500
---------------------------------------------- -----------
Utilities-Telephone--4.5%
----------------------------------------------
20,000 AT&T Corp. $ 1,038,750
----------------------------------------------
30,000 GTE Corp. 2,210,625
---------------------------------------------- -----------
Total 3,249,375
---------------------------------------------- -----------
Utility-Electric Power--4.6%
----------------------------------------------
100,000 DPL, Inc. 1,918,750
----------------------------------------------
15,666 Duke Energy Corp. 829,319
----------------------------------------------
30,000 TECO Energy, Inc. 611,250
---------------------------------------------- -----------
Total 3,359,319
---------------------------------------------- -----------
Total Common Stocks (identified cost
$35,869,888) 49,707,956
---------------------------------------------- ===========
Preferred Stocks--2.3%
- -------------------------------------------------------------
Finance--1.3%
----------------------------------------------
15,000 Merrill Lynch Capital Trust III, Pfd. 341,250
----------------------------------------------
25,000 Merrill Lynch Capital Trust IV, Pfd. 585,938
---------------------------------------------- -----------
Total 927,188
---------------------------------------------- -----------
Telecommunications-Cellular--0.6%
----------------------------------------------
20,000 Motorola Capital Trust, Pfd. 441,250
---------------------------------------------- -----------
Utility-Gas Distribution--0.4%
----------------------------------------------
7,000 MCN Energy Group, Inc., PRIDES, 8.00% 268,625
---------------------------------------------- -----------
Total Preferred Stocks (identified cost
$1,875,919) 1,637,063
---------------------------------------------- ===========
Corporate Bonds--6.2%
- -------------------------------------------------------------
Auto/Truck-Orig.--1.3%
----------------------------------------------
$1,000,000 Delphi Auto Systems Corp., Note, 6.50%,
5/1/2009 932,928
---------------------------------------------- -----------
Banking--1.4%
----------------------------------------------
1,000,000 BankAmerica Corp., Sub. Note, 7.20%,
4/15/2006 991,080
---------------------------------------------- -----------
Oil - Integrated--1.3%
----------------------------------------------
1,000,000 Conoco, Inc., Sr. Note, 6.35%, 4/15/2009 954,174
---------------------------------------------- -----------
Finance--0.6%
----------------------------------------------
$ 500,000 PNC Funding Corp., Sub. Note, 6.125%,
2/15/2009 $ 459,016
---------------------------------------------- -----------
Protection-Safety--1.3%
----------------------------------------------
1,000,000 Tyco International Group, Sr. Note,
6.125%, 1/15/2009 921,967
---------------------------------------------- ------------
Retail-Drug--0.3%
----------------------------------------------
250,000 Rite Aid Corp., 5.25%, 9/15/2002 243,437
---------------------------------------------- -----------
Total Corporate Bonds (identified cost
$4,724,680) 4,502,602
---------------------------------------------- ===========
Government Agencies--20.0%
----------------------------------------------
Federal Farm Credit Bank--2.8%
----------------------------------------------
2,000,000 7.10%, 11/12/2002 2,044,278
---------------------------------------------- -----------
Federal Home Loan Bank--3.7%
----------------------------------------------
3,000,000 5.50%, 12/11/2013 2,674,695
---------------------------------------------- -----------
Federal Home Loan Mortgage Corporation--10.9%
----------------------------------------------
1,847,011 6.00%, 10/1/2013 1,770,840
----------------------------------------------
6,341,344 6.50%, 3/1/2013 - 9/1/2018 6,130,311
---------------------------------------------- -----------
Total 7,901,151
---------------------------------------------- -----------
Tennessee Valley Authority--2.6%
----------------------------------------------
2,000,000 Tennessee Valley Authority, Bond, Series 1,829,518
G, 5.375%, 11/13/2008
---------------------------------------------- -----------
Total Government Agencies (identified 14,449,642
cost $15,282,199)
---------------------------------------------- ===========
Mutual Fund--3.9%
- -------------------------------------------------------------
2,837,865 Federated U.S. Treasury Cash Reserves
Fund (at net asset value) 2,837,865
---------------------------------------------- -----------
Total Investments (identified cost
$60,590,551)(1) $73,135,128
---------------------------------------------- ===========
(1) The cost of investments for federal tax purposes amounts to $60,590,551. The
net unrealized appreciation of investments on a federal tax basis amounts to
$12,544,577 which comprised $14,674,033 appreciation and $2,129,456
depreciation at July 31, 1999.
Note: The categories of investments are shown as a percentage of net assets
($72,306,531) at July 31, 1999.
The following acronyms are used throughout this portfolio:
ADR -- American Depositary Receipt
PLC -- Public Limited Company
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, 1999 (unaudited)
- ----------------------------------------------------------------
Assets:
- ----------------------------------------------------------------
Total investments in securities, at value (identified and
tax cost $60,590,551) $73,135,128
- ----------------------------------------------------------------
Cash 49,189
- ----------------------------------------------------------------
Income receivable 229,488
- ---------------------------------------------------------------- -----------
Total assets 73,413,805
- ----------------------------------------------------------------
Liabilities:
- ----------------------------------------------------------------
Payable for investments purchased $1,025,320
- -----------------------------------------------------------------
Accrued expenses 81,954
- ----------------------------------------------------------------- -----------
Total liabilities 1,107,274
- -----------------------------------------------------------------------------
Net Assets for 6,756,219 shares outstanding $72,306,531
- ------------------------------------------------------------------===========
Net Assets Consist of:
- ------------------------------------------------------------------
Paid in capital $58,225,731
- ------------------------------------------------------------------
Net unrealized appreciation of investments 12,544,577
- ------------------------------------------------------------------
Accumulated net realized gain on investments 1,526,050
- ------------------------------------------------------------------
Undistributed net investment income 10,173
- -----------------------------------------------------------------------------
Total Net Assets $72,306,531
- ------------------------------------------------------------------===========
Net Asset Value, Offering Price and Redemption Proceeds Per
Share:
- ------------------------------------------------------------------
$72,306,531 / 6,756,219 shares outstanding $ 10.70
- ------------------------------------------------------------------ ==========
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Statement of Operations
Six Months Ended July 31, 1999 (unaudited)
- -------------------------------------------------------------------------------
Investment Income:
- ----------------------------------------------------------
Dividends 513,932
- ----------------------------------------------------------
Interest 606,173
- -------------------------------------------------------------------
Total income 1,120,105
- ----------------------------------------------------------
Expenses:
- ----------------------------------------------------------
Investment advisory fee 249,985
- ----------------------------------------------------------
Administrative personnel and services fee 46,836
- ----------------------------------------------------------
Custodian fees 8,351
- ----------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 8,258
- ----------------------------------------------------------
Directors'/Trustees' fees 1,537
- ----------------------------------------------------------
Auditing fees 7,885
- ----------------------------------------------------------
Legal fees 951
- ----------------------------------------------------------
Portfolio accounting fees 23,059
- ----------------------------------------------------------
Share registration costs 7,768
- ----------------------------------------------------------
Printing and postage 4,069
- ----------------------------------------------------------
Insurance premiums 1,239
- ----------------------------------------------------------
Miscellaneous 1,024
- ---------------------------------------------------------- --------
Total expenses 360,962
- ----------------------------------------------------------
Waiver--
- ----------------------------------------------------------
Waiver of investment advisory fee (50,000)
- ---------------------------------------------------------- --------
Net expenses 310,962
- ---------------------------------------------------------- -----------
Net investment income 809,143
- ---------------------------------------------------------- -----------
Realized and Unrealized Gain on Investments:
- ----------------------------------------------------------
Net realized gain on investments 1,526,254
- ----------------------------------------------------------
Net change in unrealized appreciation of investments 5,038,454
- ---------------------------------------------------------- -----------
Net realized and unrealized gain on investments 6,564,708
- ---------------------------------------------------------- -----------
Change in net assets resulting from operations $ 7,373,851
- ---------------------------------------------------------- -----------
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
- ---------------------------------------------------------------------------------------------------
Six Months
Ended
(unaudited) Period Ended
July 31, 1999 January 31, 1999 (1)
-------------- ----------------
Increase (Decrease) in Net Assets:
Operations--
Net investment income $ 809,143 $ 1,371,156
Net realized gain on investments ($1,526,254 and $3,910,679,
respectively, as computed for federal tax purposes) 1,526,254 3,910,501
Net change in unrealized appreciation 5,038,454 (1,990,218)
----------- -----------
Change in net assets resulting from operations 7,373,851 3,291,439
----------- -----------
Distributions to Shareholders--
Distributions from net investment income (777,654) (1,392,294)
Distributions from net realized gains (902,989) (3,007,894)
----------- -----------
Change in net assets resulting from distributions
to shareholders (1,680,643) (4,400,188)
----------- -----------
Share Transactions--
Proceeds from sale of shares 8,032,809 11,694,585
Proceeds from shares issued in connection with the
merger of Common Trust Funds -- 53,660,556(2)
Net asset value of shares issued to shareholders
in payment of distributions declared 177,446 245,179
Cost of shares redeemed (2,483,558) (3,604,945)
----------- -----------
Change in net assets resulting from share transactions 5,726,697 61,995,375
----------- -----------
Change in net assets 11,419,905 60,886,626
Net Assets:
Beginning of period 60,886,626 --
----------- -----------
End of period (including undistributed net
investment income of $10,173 at July 31, 1999) $72,306,531 $60,886,626
=========== ===========
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to January 31, 1999.
(2) Includes $9,496,341 of unrealized appreciation at April 20, 1998, related
to the acquisition of Common Trust Funds.
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Financial Highlights
- -----------------------------------------------------------------------------
(For a share outstanding throughout each period)
Six Months
Ended
(unaudited) Period Ended
July 31, 1999 January 31, 1999
(1)
-------------- ----------------
Net asset value, beginning of period $ 9.81 $ 10.00
Income from investment operations
Net investment income 0.12 0.24
Net realized and unrealized gain on investments 1.02 0.30
------- -------
Total from investment operations 1.14 0.54
------- -------
Less distributions
Distributions from net investment income (0.12) (0.24)
Distributions from net realized gain on investments (0.13) (0.49)
------- -------
Total distributions (0.26) (0.73)
------- -------
Net asset value, end of period $ 10.70 $ 9.81
======= =======
Total return (2) 11.71% 5.50%
Ratios to average net assets
Expenses (3) 1.08%(4) 1.24%(4)
Net investment income (3) 2.28%(4) 2.94%(4)
Expenses (after waivers) 0.93%(4) 1.15%(4)
Net investment income (after waivers) 2.43%(4) 3.03%(4)
Supplemental data
Net assets, end of period (000 omitted)............................. $72,307 $60,887
Portfolio turnover 21% 57%
</TABLE>
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to January 31, 1999.
(2) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(3) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
(4) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
WesMark Balanced Fund
Notes to Financial Statements
July 31, 1999 (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 WesBanco Bank Wheeling, the Fund's adviser. The acquisition was a tax-free
exchange of 5,366,055 shares of the Fund valued at $53,660,556 and unrealized
appreciation of $9,496,341.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations -- 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>
<S> <C> <C>
Six Months
Ended Period
Ended
July 31, 1999 January 31,
1999 (1)
-------------
- ----------------
Shares sold 771,515
1,184,327
Proceeds from shares issued in connection with the merger
of Common Trust Funds --
5,366,055
Shares issued to shareholders in payment of distributions declared 16,674
24,813
Shares redeemed (240,066)
(367,099)
Net change resulting from share transactions 548,123
6,208,096
</TABLE>
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to January 31, 1999.
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 six months
ended July 31, 1999, 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 six months ended July 31, 1999, 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 six months ended July 31, 1999, the
Fund engaged in purchase and sale transactions with mutual funds that have
common 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 $17,251,708 and $15,509,544, respectively.
Other Affiliated Parties and Transactions -- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in certain affiliated money market
funds. As of July 31, 1999, the Fund owned 0.1% of outstanding shares of
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. Investment Transactions
Purchases and sales of investments, excluding short-term securities for the six
months ended July 31, 1999, were as follows:
Purchases $19,917,409
- ----------------------------------------------------- ===========
Sales $13,686,201
- ----------------------------------------------------- ===========
6. 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
John F. Cunningham J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward C. Gonzales John W. McGonigle
Peter E. Madden Executive Vice President
Charles F. Mansfield, Jr. and Secretary
John E. Murray, Jr., J.D., S.J.D. Richard B. Fisher
Marjorie P. Smuts Vice President
John S. Walsh C. Christine Thomson
Vice President and Assistant
Treasurer
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 Bond Fund]
Bond Fund
Semi-Annual Report
July 31, 1999
[Logo of WesMark Funds]
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for WesMark Bond
Fund. This report covers the period from February 1, 1999 through July 31, 1999.
It gives you a complete picture of the fund's operations, followed by a complete
listing of fund holdings and the financial statements.
WesMark Bond Fund is managed to help your money earn a high level of current
income by investing in a diversified portfolio of high-quality bonds. At the end
of the reporting period, the fund's $118.6 million portfolio was invested
primarily across government agency bonds and mortgage securities (78.1%) and
investment-grade corporate bonds (17.3%).
During the initial period of operations covered by this report, the fund's
monthly income dividends totaled $0.27 per share. The fund also paid $0.01 per
share in capital gains and its net asset value decreased by $0.60. The income
and net asset value decrease resulted in a (3.22%)* 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, 1999
* 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.
July 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Principal Value
Amount
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Corporate Bonds -- 17.3%
- ----------------------------------------------------------------------------------------------------------------
Automotive -- 1.6%
- ----------------------------------------------------------------------------------------------------------------
$ 1,000,000 Delphi Auto Systems Corp., Note, 6.50%, 5/1/2009 $ 932,928
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Goodyear Tire & Rubber Co., Sr. Note, 6.625%, 12/1/2006 954,539
- ----------------------------------------------------------------------------------------------------------------
Total 1,887,467
- ----------------------------------------------------------------------------------------------------------------
Banking -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 BankAmerica Corp., Sr. Note, 5.875%, 2/15/2009 906,071
- ----------------------------------------------------------------------------------------------------------------
Basic Materials -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Worthington Industries, Inc., 7.125%, 5/15/2006 973,573
- ----------------------------------------------------------------------------------------------------------------
Computer Services -- 1.6%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Dell Computer Corp., Sr. Note, 6.55%, 4/15/2008 954,273
- ----------------------------------------------------------------------------------------------------------------
1,000,000 First Data Corp., MTN, Series D, 6.375%, 12/15/2007 964,037
- ----------------------------------------------------------------------------------------------------------------
Total 1,918,310
- ----------------------------------------------------------------------------------------------------------------
Energy -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Columbia Energy Group, Note, 7.32%, 11/28/2010 982,277
- ----------------------------------------------------------------------------------------------------------------
Finance -- 3.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Donaldson, Lufkin and Jenrette Securities Corp., Note, 962,905
Series MTN, 6.90%, 10/1/2007
- ----------------------------------------------------------------------------------------------------------------
1,000,000 FINOVA Capital Corp., Sr. Note, 6.75%, 3/9/2009 950,201
- ----------------------------------------------------------------------------------------------------------------
750,000 Merrill Lynch & Co., Inc., Note, 7.00%, 1/15/2007 737,414
- ----------------------------------------------------------------------------------------------------------------
1,000,000 National City Corp., Sub. Note, 6.625%, 3/1/2004 987,035
- ----------------------------------------------------------------------------------------------------------------
1,000,000 PNC Funding Corp., Sub. Note, 6.125%, 2/15/2009 918,033
- ----------------------------------------------------------------------------------------------------------------
Total 4,555,588
- ----------------------------------------------------------------------------------------------------------------
Finance - Automotive -- 1.3%
- ----------------------------------------------------------------------------------------------------------------
500,000 Ford Motor Credit Corp., Note, 8.375%, 1/15/2000 505,974
- ----------------------------------------------------------------------------------------------------------------
1,000,000 General Motors Acceptance Corp., Note, 7.00%, 3/1/2000 1,007,804
- ----------------------------------------------------------------------------------------------------------------
Total 1,513,778
- ----------------------------------------------------------------------------------------------------------------
Instruments - Control -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Honeywell, Inc., 7.00%, 3/15/2007 998,292
- ----------------------------------------------------------------------------------------------------------------
Metals & Mining -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Commercial Metals Corp., Note, 6.75%, 2/15/2009 950,900
- ----------------------------------------------------------------------------------------------------------------
Oil -- 1.3%
- ----------------------------------------------------------------------------------------------------------------
500,000 Union Oil of California, 9.125%, 2/15/2006 539,586
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Union Oil of California, Sr. Note, Series C, 6.70%, 968,459
10/15/2007
- ----------------------------------------------------------------------------------------------------------------
Total 1,508,045
- ----------------------------------------------------------------------------------------------------------------
Protection - Safety -- 1.6%
- ----------------------------------------------------------------------------------------------------------------
2,000,000 Tyco International Group, Sr. Note, 6.125%, 1/15/2009 1,843,934
- ----------------------------------------------------------------------------------------------------------------
Retail -- 1.3%
- ----------------------------------------------------------------------------------------------------------------
500,000 Penney (J.C.) Co., Inc., Deb., 7.65%, 8/15/2016 485,347
- ----------------------------------------------------------------------------------------------------------------
1,000,000 Penney (J.C.) Co., Inc., Note, 7.60%, 4/1/2007 1,003,298
- ----------------------------------------------------------------------------------------------------------------
Total 1,488,645
- ----------------------------------------------------------------------------------------------------------------
Utility - Telephone -- 0.8%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 GTE Northwest, Inc., Deb., 6.30%, 6/1/2010 945,482
- ----------------------------------------------------------------------------------------------------------------
Total Corporate Bonds (identified cost $21,165,467) 20,472,362
- ----------------------------------------------------------------------------------------------------------------
Government Agencies -- 78.1%
- ----------------------------------------------------------------------------------------------------------------
Federal Farm Credit Bank -- 4.0%
- ----------------------------------------------------------------------------------------------------------------
5,000,000 6.46%, 4/2/2008 4,757,905
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank -- 24.8%
- ----------------------------------------------------------------------------------------------------------------
3,000,000 5.475%, 1/12/2009 2,741,064
- ----------------------------------------------------------------------------------------------------------------
10,000,000 5.80%, 9/2/2008 9,397,960
- ----------------------------------------------------------------------------------------------------------------
6,335,000 5.83%, 9/30/2013 5,729,000
- ----------------------------------------------------------------------------------------------------------------
2,000,000 6.39%, 7/5/2005 1,970,092
- ----------------------------------------------------------------------------------------------------------------
3,000,000 6.50%, 9/9/2008 2,871,231
- ----------------------------------------------------------------------------------------------------------------
3,000,000 6.865%, 10/23/2007 2,929,851
- ----------------------------------------------------------------------------------------------------------------
1,570,000 7.46%, 9/9/2004 1,638,642
- ----------------------------------------------------------------------------------------------------------------
Principal
Amount
or Shares Value
Government Agencies -- continued
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank -- continued
- ----------------------------------------------------------------------------------------------------------------
$ 2,000,000 7.87%, 10/20/2004 $ 2,123,982
- ----------------------------------------------------------------------------------------------------------------
Total 29,401,822
- ----------------------------------------------------------------------------------------------------------------
Federal Home Loan Mortgage Corporation -- 34.0%
- ----------------------------------------------------------------------------------------------------------------
13,032,905 6.00%, 4/1/2013 - 10/1/2013 12,511,492
- ----------------------------------------------------------------------------------------------------------------
11,648,896 6.50%, 3/1/2013 - 5/1/2013 11,399,492
- ----------------------------------------------------------------------------------------------------------------
4,000,000 6.69%, 4/23/2008 3,866,316
- ----------------------------------------------------------------------------------------------------------------
4,000,000 6.846%, 10/10/2007 3,903,836
- ----------------------------------------------------------------------------------------------------------------
8,734,192 7.00%, 7/1/2011 - 3/1/2018 8,688,199
- ----------------------------------------------------------------------------------------------------------------
Total 40,369,335
- ----------------------------------------------------------------------------------------------------------------
Federal National Mortgage Association -- 12.1%
- ----------------------------------------------------------------------------------------------------------------
1,000,000 6.45%, 2/14/2002 999,837
- ----------------------------------------------------------------------------------------------------------------
7,264,086 6.50%, 5/1/2018 - 9/1/2018 6,970,980
- ----------------------------------------------------------------------------------------------------------------
2,000,000 6.54%, 10/3/2005 1,977,966
- ----------------------------------------------------------------------------------------------------------------
2,000,000 6.59%, 5/21/2008 1,917,688
- ----------------------------------------------------------------------------------------------------------------
1,000,000 6.85%, 4/5/2004 1,016,857
- ----------------------------------------------------------------------------------------------------------------
1,478,372 7.00%, 2/1/2018 1,451,776
- ----------------------------------------------------------------------------------------------------------------
Total 14,335,104
- ----------------------------------------------------------------------------------------------------------------
Tennessee Valley Authority -- 3.2%
- ----------------------------------------------------------------------------------------------------------------
4,000,000 Tennessee Valley Authority, Series C, 6.00%, 3/15/2013 3,742,808
- ----------------------------------------------------------------------------------------------------------------
Total Government Agencies (identified cost $96,656,088) 92,606,974
- ----------------------------------------------------------------------------------------------------------------
Preferred Stocks -- 2.3%
- ----------------------------------------------------------------------------------------------------------------
Finance -- 1.9%
- ----------------------------------------------------------------------------------------------------------------
50,000 ML Preferred Capital Trust III, Pfd. 1,137,500
- ----------------------------------------------------------------------------------------------------------------
25,000 Merrill Lynch Capital Trust IV, Pfd. 585,938
- ----------------------------------------------------------------------------------------------------------------
20,500 Reliastar Financing I, Pfd. 508,656
- ----------------------------------------------------------------------------------------------------------------
Total 2,232,094
- ----------------------------------------------------------------------------------------------------------------
Shares Value
- ----------------------------------------------------------------------------------------------------------------
Preferred Stocks -- continued
- ----------------------------------------------------------------------------------------------------------------
Telecommunications - Cellular -- 0.4%
- ----------------------------------------------------------------------------------------------------------------
20,000 Motorola Capital Trust, Pfd. $ 441,250
- ----------------------------------------------------------------------------------------------------------------
Total Preferred Stocks (identified cost $2,867,538) 2,673,344
- ----------------------------------------------------------------------------------------------------------------
Mutual Fund -- 3.1%
- ----------------------------------------------------------------------------------------------------------------
3,657,635 Federated Prime Obligations Fund (at net asset value) 3,657,635
- ----------------------------------------------------------------------------------------------------------------
Total Investments (identified cost $124,346,728)(1) $ 119,410,315
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The cost of investments for federal tax purposes amounts to $124,346,728.
The net unrealized depreciation of investments on a federal tax basis
amounts to ($4,936,413) which comprised $270,037 appreciation and
($5,206,450) depreciation at July 31, 1999.
Note: The categories of investments are shown as a percentage of net assets
($118,580,064) at July 31, 1999.
The following acronym is used throughout this portfolio:
MTN -- Medium Term Note
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund Statement of Assets and Liabilities
July 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Assets:
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total investments in securities, at value $ 119,410,315
(identified and tax cost $124,346,728)
- --------------------------------------------------------------------------------------------------------------
Cash 68,224
- --------------------------------------------------------------------------------------------------------------
Income receivable 1,734,824
- --------------------------------------------------------------------------------------------------------------
Total assets 121,213,363
- --------------------------------------------------------------------------------------------------------------
Liabilities:
- --------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ 1,922,585
- --------------------------------------------------------------------------------------------------------------
Income distribution payable 604,939
- --------------------------------------------------------------------------------------------------------------
Accrued expenses 105,775
- --------------------------------------------------------------------------------------------------------------
Total liabilities 2,633,299
- --------------------------------------------------------------------------------------------------------------
Net Assets for 12,474,871 shares outstanding $ 118,580,064
- --------------------------------------------------------------------------------------------------------------
Net Assets Consist of:
- --------------------------------------------------------------------------------------------------------------
Paid in capital $ 123,521,055
- --------------------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (4,936,413)
- --------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments (4,578)
- --------------------------------------------------------------------------------------------------------------
Total Net Assets $ 118,580,064
- --------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering Price and Redemption
Proceeds Per Share:
- --------------------------------------------------------------------------------------------------------------
$118,580,064 / 12,474,871 shares outstanding $9.51
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund Statement of Operations
Six Months Ended July 31, 1999 (unaudited)
<TABLE>
<CAPTION>
Investment Income:
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Dividends $ 100,745
- ------------------------------------------------------------------------------------------------------------
Interest 3,641,312
- ------------------------------------------------------------------------------------------------------------
Total income 3,742,057
- ------------------------------------------------------------------------------------------------------------
Expenses:
- ------------------------------------------------------------------------------------------------------------
Investment advisory fee $ 352,184
- ------------------------------------------------------------------------------------------------------------
Administrative personnel and services fee 82,507
- ------------------------------------------------------------------------------------------------------------
Custodian fees 8,694
- ------------------------------------------------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 4,876
- ------------------------------------------------------------------------------------------------------------
Directors'/Trustees' fees 1,449
- ------------------------------------------------------------------------------------------------------------
Auditing fees 7,473
- ------------------------------------------------------------------------------------------------------------
Legal fees 753
- ------------------------------------------------------------------------------------------------------------
Portfolio accounting fees 21,336
- ------------------------------------------------------------------------------------------------------------
Share registration costs 8,002
- ------------------------------------------------------------------------------------------------------------
Printing and postage 3,972
- ------------------------------------------------------------------------------------------------------------
Insurance premiums 1,958
- ------------------------------------------------------------------------------------------------------------
Miscellaneous 866
- ------------------------------------------------------------------------------------------------------------
Total expenses 494,070
- ------------------------------------------------------------------------------------------------------------
Waiver --
- ------------------------------------------------------------------------------------------------------------
Waiver of investment advisory fee (58,697)
- ------------------------------------------------------------------------------------------------------------
Net expenses 435,373
- ------------------------------------------------------------------------------------------------------------
Net investment income 3,306,684
- ------------------------------------------------------------------------------------------------------------
Realized and Unrealized Loss on Investments:
- ------------------------------------------------------------------------------------------------------------
Net realized loss on investments (3,463)
- ------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments (7,190,390)
- ------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (7,193,853)
- ------------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations $ (3,887,169)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months
Ended Period
(unaudited) Ended
July 31, January 31,
1999 1999 (1)
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets:
- -------------------------------------------------------------------------------------------------------
Operations --
- -------------------------------------------------------------------------------------------------------
Net investment income $ 3,306,684 $ 4,572,517
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investments ($(3,463) (3,463) 337,566
and $337,566, respectively, as computed for
federal tax purposes)
- -------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (7,190,390) 951,644
- -------------------------------------------------------------------------------------------------------
Change in net assets resulting from operations (3,887,169) 5,861,727
- -------------------------------------------------------------------------------------------------------
Distributions to Shareholders --
- -------------------------------------------------------------------------------------------------------
Distributions from net investment income (3,306,684) (4,572,517)
- -------------------------------------------------------------------------------------------------------
Distributions from net realized gains (71,991) (266,690)
- -------------------------------------------------------------------------------------------------------
Change in net assets resulting from distributions (3,378,675) (4,839,207)
to shareholders
- -------------------------------------------------------------------------------------------------------
Share Transactions --
- -------------------------------------------------------------------------------------------------------
Proceeds from sale of shares 12,991,396 29,836,051
- -------------------------------------------------------------------------------------------------------
Proceeds from shares issued in connection with -- 94,009,198(2)
the merger of Common Trust Funds
- -------------------------------------------------------------------------------------------------------
Net asset value of shares issued to shareholders 661,403 1,030,624
in payment of distributions declared
- -------------------------------------------------------------------------------------------------------
Cost of shares redeemed (5,452,554) (8,252,730)
- -------------------------------------------------------------------------------------------------------
Change in net assets resulting from share 8,200,245 116,623,143
transactions
- -------------------------------------------------------------------------------------------------------
Change in net assets 934,401 117,645,663
- -------------------------------------------------------------------------------------------------------
Net Assets:
- -------------------------------------------------------------------------------------------------------
Beginning of period 117,645,663 --
- -------------------------------------------------------------------------------------------------------
End of period $ 118,580,064 $ 117,645,663
- -------------------------------------------------------------------------------------------------------
</TABLE>
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to January 31, 1999.
(2) Includes $1,302,333 of unrealized appreciation at April 20, 1998, related
to the acquisition of Common Trust Funds.
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund Financial Highlights
(For a share outstanding throughout each period)
<TABLE>
<CAPTION>
Six Months
Ended Period
(unaudited) Ended
July 31, January 31,
1999 1999 (1)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period $ 10.11 $ 10.00
- ---------------------------------------------------------------------------------------------------
Income from investment operations
- ---------------------------------------------------------------------------------------------------
Net investment income 0.27 0.43
- ---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.59) 0.13
- ---------------------------------------------------------------------------------------------------
Total from investment operations (0.32) 0.56
- ---------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------
Distributions from net investment income (0.27) (0.43)
- ---------------------------------------------------------------------------------------------------
Distributions from net realized gains (0.01) (0.02)
- ---------------------------------------------------------------------------------------------------
Total distributions (0.28) (0.45)
- ---------------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.51 $ 10.11
- ---------------------------------------------------------------------------------------------------
Total return (2) (3.22%) 5.70%
- ---------------------------------------------------------------------------------------------------
Ratios to average net assets
- ---------------------------------------------------------------------------------------------------
Expenses (3) 0.84%(4) 0.97%(4)
- ---------------------------------------------------------------------------------------------------
Net investment income (3) 5.53%(4) 5.40%(4)
- ---------------------------------------------------------------------------------------------------
Expenses (after waivers) 0.74%(4) 0.90%(4)
- ---------------------------------------------------------------------------------------------------
Net investment income (after waivers) 5.63%(4) 5.47%(4)
- ---------------------------------------------------------------------------------------------------
Supplemental data
- ---------------------------------------------------------------------------------------------------
Net assets, end of period (000 omitted) $118,580 $117,646
- ---------------------------------------------------------------------------------------------------
Portfolio turnover 7% 39%
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investment) to January 31, 1999.
(2) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(3) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occurred, the ratios would have been as indicated.
(4) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
WesMark Bond Fund Notes to Financial Statements
July 31, 1999 (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 the assets of two 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 and
unrealized appreciation of $1,302,333.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations -- U.S. government securities, 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>
Six Months Ended Period Ended
July 31, 1999 January 31, 1999(1)
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Shares sold 1,323,697 2,955,796
- ------------------------------------------------------------------------------------------
Proceeds from shares issued in connection -- 9,400,919
with the merger of Common Trust Funds
- ------------------------------------------------------------------------------------------
Shares issued to shareholders in payment 67,409 102,148
of distributions declared
- ------------------------------------------------------------------------------------------
Shares redeemed (556,145) (818,953)
- ------------------------------------------------------------------------------------------
Net change resulting from share 834,961 11,639,910
transactions
- ------------------------------------------------------------------------------------------
</TABLE>
(1) Reflects operations for the period from April 20, 1998 (date of initial
public investments) to January 31, 1999.
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 six months ended July
31, 1999, 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 six months ended July 31, 1999, 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 six months ended July 31, 1999, the Fund
engaged in purchase and sale transactions with mutual funds that have common
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 $20,949,053 and $22,052,164, respectively.
Other Affiliated Parties and Transactions -- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in certain affiliated money market
funds. As of July 31, 1999 the Fund owned 0.04% of outstanding shares of
Federated Prime 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 six
months ended July 31, 1999, were as follows:
<TABLE>
<S> <C>
Purchases $18,987,735
- --------------------------------------------------------------------------------
Sales $ 7,554,496
- --------------------------------------------------------------------------------
</TABLE>
6. 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
John F. Donahue
Thomas G. Bigley
John T. Conroy, Jr.
Nicholas P. Constantakis
John F. Cunningham
Lawrence D. Ellis, M.D.
Edward C. Gonzales
Peter E. Madden
Charles F. Mansfield, Jr.
John E. Murray, Jr., J.D., S.J.D.
Marjorie P. Smuts
John S. Walsh
Officers
John F. Donahue
Chairman
Edward C. Gonzales
President and Treasurer
J. Christopher Donahue
Executive Vice President
John W. McGonigle
Executive Vice President and Secretary
Richard B. Fisher
Vice President
C. Christine Thomson
Vice President and Assistant Treasurer
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 Bond Fund]
Semi-Annual Report
Dated July 31, 1999
Edgewood Services, Inc., Distributor
Cusip 951025402
G02160-09 (9/99)
[Logo of WesBanco Wheeling]
Investment Adviser
A Subsidiary of WesBanco, Inc.
[Logo of WesMark Growth Fund]
Growth
Fund
Semi-Annual Report
July 31, 1999
[Logo of WesMark Growth Fund]
President's Message
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for WesMark
Growth Fund. This report covers the six-month period from February 1, 1999
through July 31, 1999. It gives you a complete picture of the fund's operations,
followed by a complete listing 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 familiar names like Texas
Instruments, Inc., Cisco Systems, Inc., Honeywell, Inc., General Electric,
American International Group, Inc., and Bristol-Myers Squibb Co.
During the first six months of its current fiscal year, the fund produced a very
strong total return of 20.43%. Contributing to the total return were a share
price increase of $2.27 and capital gains totaling $0.33* per share. On the last
day of the reporting period, the fund's assets reached $167.0 million.
Thank you for pursuing your longer-term financial goals through the WesMark
Growth Fund.
Sincerely,
/s/ Edward C. Gonzales
Edward C. Gonzales
President
* 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, 1999 (unaudited)
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Shares
Value
- --------- --------------------------------------------------------------------------------
- -------------
Common Stocks--97.0%
- -----------------------------------------------------------------------------------------------------
Advertising Agencies--1.9%
------------------------------------------------------------------------------
25,000 Omnicom Group, Inc.
$ 1,771,875
------------------------------------------------------------------------------
30,000 (1)Young & Rubicam,
Inc. 1,359,375
------------------------------------------------------------------------------
- ------------
Total 3,131,250
------------------------------------------------------------------------------
- ------------
Banks - Major Regional--4.4%
------------------------------------------------------------------------------
15,000 First Union
Corp. 690,000
------------------------------------------------------------------------------
125,000 PNC Bank
Corp. 6,609,375
------------------------------------------------------------------------------
- ------------
Total 7,299,375
------------------------------------------------------------------------------
- ------------
Biomedical--3.2%
------------------------------------------------------------------------------
70,000 (1)Amgen,
Inc. 5,381,250
------------------------------------------------------------------------------
- ------------
Chemical - Specialty--1.3%
------------------------------------------------------------------------------
30,000 Corning,
Inc. 2,100,000
------------------------------------------------------------------------------
- ------------
Chemicals - Diversified--0.4%
------------------------------------------------------------------------------
30,000 Solutia,
Inc. 641,250
------------------------------------------------------------------------------
- ------------
Computer Services--5.0%
------------------------------------------------------------------------------
170,000 First Data
Corp. 8,425,625
------------------------------------------------------------------------------
- ------------
Computers - Mini--3.9%
------------------------------------------------------------------------------
50,000 Hewlett-Packard
Co. 5,234,375
------------------------------------------------------------------------------
20,000 (1)Sun Microsystems,
Inc. 1,357,500
------------------------------------------------------------------------------
- ------------
Total 6,591,875
------------------------------------------------------------------------------
- ------------
Diversified Operations--8.4%
------------------------------------------------------------------------------
100,000 Allied-Signal,
Inc. 6,468,750
------------------------------------------------------------------------------
70,000 General Electric
Co. 7,630,000
------------------------------------------------------------------------------
- ------------
Total 14,098,750
------------------------------------------------------------------------------
- ------------
Drugs & Healthcare--2.0%
------------------------------------------------------------------------------
50,000 Merck & Co.,
Inc. 3,384,375
------------------------------------------------------------------------------
- ------------
Electronic Components--4.4%
------------------------------------------------------------------------------
120,000 (1)EMC Corp.
Mass 7,267,500
------------------------------------------------------------------------------
- ------------
Electronic Components - Semiconductor--12.9%
------------------------------------------------------------------------------
135,000 (1)Adaptec, Inc.
$ 5,248,125
------------------------------------------------------------------------------
20,000 Motorola,
Inc. 1,825,000
------------------------------------------------------------------------------
100,000 Texas Instruments,
Inc. 14,400,000
------------------------------------------------------------------------------
- ------------
Total 21,473,125
------------------------------------------------------------------------------
- ------------
Finance --1.7%
------------------------------------------------------------------------------
75,000 Countrywide Credit Industries,
Inc. 2,793,750
------------------------------------------------------------------------------
- ------------
Instruments - Control--5.0%
------------------------------------------------------------------------------
70,000 Honeywell,
Inc. 8,386,875
------------------------------------------------------------------------------
- ------------
Insurance Property & Casualty--3.8%
------------------------------------------------------------------------------
55,000 American International Group,
Inc. 6,386,875
------------------------------------------------------------------------------
- ------------
Insurance - Life--1.8%
------------------------------------------------------------------------------
70,000 Nationwide Financial Services, Inc., Class
A 3,018,750
------------------------------------------------------------------------------
- ------------
Medical - Generic Drug--3.0%
------------------------------------------------------------------------------
60,000 Bristol-Myers Squibb
Co. 3,990,000
------------------------------------------------------------------------------
30,000 Pfizer,
Inc. 1,018,125
------------------------------------------------------------------------------
- ------------
Total 5,008,125
------------------------------------------------------------------------------
- ------------
Networking Products--3.0%
------------------------------------------------------------------------------
80,000 (1)Cisco Systems,
Inc. 4,970,000
------------------------------------------------------------------------------
- ------------
Oil & Gas Drilling--0.9%
------------------------------------------------------------------------------
50,000 Transocean Offshore,
Inc. 1,534,375
------------------------------------------------------------------------------
- ------------
Oil & Gas Equipment & Services--1.3%
------------------------------------------------------------------------------
50,000 Williams Cos., Inc.
(The) 2,103,125
------------------------------------------------------------------------------
- ------------
Oil Comp - Exploration & Production--8.8%
------------------------------------------------------------------------------
175,000 Burlington Resources,
Inc. 7,732,812
------------------------------------------------------------------------------
325,000 Enron Oil & Gas
Co. 6,946,875
------------------------------------------------------------------------------
- ------------
Total 14,679,687
------------------------------------------------------------------------------
- ------------
Oil- Integrated--3.4%
------------------------------------------------------------------------------
110,000 Phillips Petroleum
Co. 5,644,375
------------------------------------------------------------------------------
- ------------
Protection - Safety--4.1%
------------------------------------------------------------------------------
70,000 Tyco International Ltd.
$ 6,838,125
------------------------------------------------------------------------------
- ------------
Telecommunications Equipment--7.0%
------------------------------------------------------------------------------
55,000 (1)Gilat Satellite
Networks 2,901,250
------------------------------------------------------------------------------
140,000 Scientific-Atlanta,
Inc. 5,110,000
------------------------------------------------------------------------------
60,000 (1)Tellabs,
Inc. 3,693,750
------------------------------------------------------------------------------
Total 11,705,000
------------------------------------------------------------------------------
- ------------
Textile Apparel--2.2%
------------------------------------------------------------------------------
100,000 (1)Tommy Hilfiger
Corp. 3,693,750
------------------------------------------------------------------------------
- ------------
Transportation - Airline--1.8%
------------------------------------------------------------------------------
50,000 Delta Air Lines,
Inc. 2,981,250
------------------------------------------------------------------------------
- ------------
Utilities - Telephone--1.4%
------------------------------------------------------------------------------
45,000 AT&T
Corp. 2,337,188
------------------------------------------------------------------------------
- ------------
Total Common Stocks (identified cost
$113,129,045) 161,875,625
------------------------------------------------------------------------------
============
Mutual Fund--2.7%
- -----------------------------------------------------------------------------------------------------
4,575,876 Federated U.S. Treasury Cash Reserves Fund (at net asset
value) 4,575,876
------------------------------------------------------------------------------
- ------------
Total Investments (identified cost $117,704,921)(2)
$166,451,501
------------------------------------------------------------------------------
============
</TABLE>
(1) Non-income producing security.
(2) The cost of investments for federal tax purposes amounts to $117,704,921.
The net unrealized appreciation of investments on a federal tax basis
amounts to $48,746,580 which is comprised $50,124,955 appreciation and
($1,378,375) depreciation at July 31, 1999.
Note: The categories of investments are shown as a percentage of net assets
($166,951,231) at July 31, 1999.
(See Notes which are an integral part of the Financial Statements)
<TABLE>
<CAPTION>
<S> <C>
WesMark Growth Fund
Statement of Assets and Liabilities
July 31, 1999 (unaudited)
- ----------------------------------------------------------------------------
Assets:
- ----------------------------------------------------------------------------------------------
Total investments in securities, at value
(identified and tax cost $117,704,921) $166,451,501
- ----------------------------------------------------------------------------------------------
Cash 131,847
- ----------------------------------------------------------------------------------------------
Income receivable 92,222
- ----------------------------------------------------------------------------------------------
Receivable for investments sold 3,379,988
- ----------------------------------------------------------------------------------------------
Unamortized organizational costs 3,037
- ---------------------------------------------------------------------------------------------- ------------
Total assets 170,058,595
- ----------------------------------------------------------------------------------------------
Liabilities:
- --------------------------------------------------------
Payable for investments purchased $2,903,400
- --------------------------------------------------------
Accrued expenses 203,964
- -------------------------------------------------------- ----------
Total liabilities 3,107,364
- ---------------------------------------------------------------------------------------------- ------------
Net Assets for 11,125,999 shares outstanding $166,951,231
- ---------------------------------------------------------------------------------------------- ============
Net Assets Consist of:
- ----------------------------------------------------------------------------------------------
Paid in capital $108,969,395
- ----------------------------------------------------------------------------------------------
Net unrealized appreciation of investments 48,746,580
- ----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 9,213,605
- ----------------------------------------------------------------------------------------------
Undistributed net investment income 21,651
- ---------------------------------------------------------------------------------------------- ------------
Total Net Assets $166,951,231
- ---------------------------------------------------------------------------------------------- ============
Net Asset Value, Offering Price and Redemption
Proceeds Per Share:
- ----------------------------------------------------------------------------------------------
$166,951,231 / 11,125,999 shares outstanding $ 15.01
- ---------------------------------------------------------------------------------------------- ============
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Statement of Operations
Six Months Ended July 31, 1999 (unaudited)
- -------------------------------------------------------------------------------
Investment Income:
- -------------------------------------------------------------------------------------------------
Dividends $604,402
- -------------------------------------------------------------------------------------------------
Interest 172,420
- ------------------------------------------------------------------------------------------------- --------
Total income 776,822
- -------------------------------------------------------------------------------------------------
Expenses:
- -----------------------------------------------------------------
Investment advisory fee $557,638
- -----------------------------------------------------------------
Administrative personnel and services fee 104,469
- -----------------------------------------------------------------
Custodian fees 12,654
- -----------------------------------------------------------------
Transfer and dividend disbursing agent fees and
expenses 7,417
- -----------------------------------------------------------------
Directors'/Trustees' fees 3,973
- -----------------------------------------------------------------
Auditing fees 10,454
- -----------------------------------------------------------------
Legal fees 3,477
- -----------------------------------------------------------------
Portfolio accounting fees 24,330
- -----------------------------------------------------------------
Share registration costs 8,552
- -----------------------------------------------------------------
Printing and postage 7,375
- -----------------------------------------------------------------
Insurance premiums 1,511
- -----------------------------------------------------------------
Miscellaneous 4,221
- ----------------------------------------------------------------- --------
Total expenses 746,071
- -----------------------------------------------------------------
Waiver--
- -----------------------------------------------------------------
Waiver of investment advisory fee (7,645)
- ----------------------------------------------------------------- --------
Net expenses 738,426
- ------------------------------------------------------------------------------------------------- ----------
Net investment income 38,396
- ------------------------------------------------------------------------------------------------- ----------
Realized and Unrealized Gain on Investments:
- -------------------------------------------------------------------------------------------------
Net realized gain on investments 9,214,380
- -------------------------------------------------------------------------------------------------
Net change in unrealized appreciation of investments 18,674,487
- ------------------------------------------------------------------------------------------------- ----------
Net realized and unrealized gain on investments 27,888,867
- ------------------------------------------------------------------------------------------------- ----------
Change in net assets resulting from operations $27,927,263
- ------------------------------------------------------------------------------------------------- ===========
</TABLE>
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Statement of Changes in Net Assets
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months
Ended
(unaudited) Year Ended
July 31, January 31,
1999 1999
-------------- --------------
Increase (Decrease) in Net Assets:
- -------------------------------------------------------
Operations--
- -------------------------------------------------------
Net investment income $ 38,396 $ 611,299
- -------------------------------------------------------
Net realized gain on investments ($9,214,380 and
$9,639,367, respectively, as computed for
federal tax purposes) 9,214,380 9,639,367
- -------------------------------------------------------
Net change in unrealized appreciation 18,674,487 15,319,589
- ------------------------------------------------------- ------------ ------------
Change in net assets resulting from operations 27,927,263 25,570,255
- ------------------------------------------------------- ------------ ------------
Distributions to Shareholders--
- -------------------------------------------------------
Distributions from net investment income (31,934) (663,101)
- -------------------------------------------------------
Distributions from net realized gains (3,666,342) (8,229,788)
- ------------------------------------------------------- ------------ ------------
Change in net assets resulting from distributions
to shareholders (3,698,276) (8,892,889)
- ------------------------------------------------------- ------------ ------------
Share Transactions--
- -------------------------------------------------------
Proceeds from sale of shares 12,241,834 15,967,706
- -------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of distributions declared 1,458,303 4,442,945
- -------------------------------------------------------
Cost of shares redeemed (6,055,568) (16,152,476)
- ------------------------------------------------------- ------------ ------------
Change in net assets resulting from share
transactions 7,644,569 4,258,175
- ------------------------------------------------------- ------------ ------------
Change in net assets 31,873,556 20,935,541
- -------------------------------------------------------
Net Assets:
- -------------------------------------------------------
Beginning of period 135,077,675 114,142,134
- ------------------------------------------------------- ------------ ------------
End of period (including undistributed net
investment income of $21,651 and $15,189,
respectively) $166,951,231 $135,077,675
- ------------------------------------------------------- ============ ============
</TABLE>
(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>
<S> <C> <C> <C> <C>
Six Months
Ended
(unaudited) Year Ended Period Ended
July 31, January 31, January 31,
1999 1999 1998 (1)
-------------- -------------- -------------
Net asset value, beginning of period $ 12.74 $ 11.15 $ 10.00
- -------------------------------------------------
Income from investment operations
- -------------------------------------------------
Net investment income 0.00(2) 0.06 0.09
- -------------------------------------------------
Net realized and unrealized gain on investments 2.60 2.38 1.71
- -------------------------------------------------
Total from investment operations 2.60 2.44 1.80
- -------------------------------------------------
Less distributions
- -------------------------------------------------
Distributions from net investment income 0.00(2) (0.06) (0.08)
- -------------------------------------------------
Distributions from net realized gain on (0.33) (0.79) (0.57)
investments
- -------------------------------------------------
Total distributions (0.33) (0.85) (0.65)
- -------------------------------------------------
Net asset value, end of period $ 15.01 $ 12.74 $ 11.15
- -------------------------------------------------
Total return (3) 20.43% 22.58% 18.24%
- -------------------------------------------------
Ratios to average net assets
- -------------------------------------------------
Expenses (4) 1.00%(5) 1.05% 1.14%(5)
- -------------------------------------------------
Net investment income (4) 0.04%(5) 0.49% 0.99%(5)
- -------------------------------------------------
Expenses (after waivers) 0.99%(5) 1.04% 1.14%(5)
- -------------------------------------------------
Net investment income (after waivers) 0.05%(5) 0.50% 0.99%(5)
- -------------------------------------------------
Supplemental data
- -------------------------------------------------
Net assets, end of period (000 omitted) $166,951 $135,078 $ 114,142
- -------------------------------------------------
Portfolio turnover 39% 58%58%
- -------------------------------------------------
</TABLE>
(1) Reflects operations for the period from Apri 14, 1997 (date of initial
public investment) to January 31, 1998.
(2) Amount represents less than $0.01 per share.
(3) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(4) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occured, the ratios would have been as indicated.
(5) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
WesMark Growth Fund
Notes to Financial Statements
July 31, 1999 (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 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.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations -- Listed equity securities are valued at the last sale
price reported on a national securities exchange. Short-term securities are
valued at the prices provided by an independent pricing service. However,
short-term securities with remaining maturities of sixty days or less at the
time of purchase may be valued at amortized cost, which approximates fair
market value. Investments in other open-end regulated investment companies
are valued at net asset value.
Investment Income, Expenses and Distributions -- Interest income and expenses
are accrued daily. Bond premium and discount, if applicable, are amortized as
required by the Internal Revenue Code, as amended (the "Code"). Dividend
income and distributions to shareholders are recorded on the ex-dividend
date.
Federal Taxes -- It is the Fund's policy to comply with the provisions of the
Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
When-Issued and Delayed Delivery Transactions -- The Fund may engage in when-
issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis
are marked to market daily and begin earning interest on the settlement date.
Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
Other -- Investment transactions are accounted for on the trade date.
3. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
Six Months
Ended Year Ended
July 31, 1999 January 31, 1999
------------- ----------------
Shares sold 869,057 1,351,801
- ----------------------------------------
Shares issued to shareholders in
payment of distributions declared 96,400 373,063
- ----------------------------------------
Shares redeemed (443,466) (1,356,413)
- ---------------------------------------- -------- ----------
Net change resulting from share
transactions 521,991 368,451
- ---------------------------------------- ======== ==========
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 six months
ended July 31, 1999, 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 year. The fee paid to WesBanco is used
to finance certain services for shareholders and to maintain shareholder
accounts. For the six months ended July 31, 1999, 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 six months ended July 31, 1999, the
Fund engaged in purchase and sale transactions with mutual funds that have
common 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 $55,318,412 and $55,578,990, respectively.
Custodian Fees -- WesBanco is the Fund's custodian. The fee is based on the
market value of the Fund securities held in custody plus certain securities
transaction 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. For
the six months ended July 31, 1999, the Fund expensed $1,729 of
organizational costs.
Other Affiliated Parties and Transactions -- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in certain affiliated money market
funds. As of July 31, 1999 the Fund owned 0.2% of outstanding shares of
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. Investment Transactions
Purchases and sales of investments, excluding short-term securities for the six
months ended July 31, 1999, were as follows:
Purchases $65,926,468
- --------------------------------------------------------- ===========
Sales $55,857,997
- --------------------------------------------------------- ===========
6. 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
John F. Cunningham J. Christopher Donahue
Lawrence D. Ellis, M.D. Executive Vice President
Edward C. Gonzales John W. McGonigle
Peter E. Madden Executive Vice President and Secretary
Charles F. Mansfield, Jr. Richard B. Fisher
John E. Murray, Jr., J.D., S.J.D. Vice President
Marjorie P. Smuts C. Christine Thomson
John S. Walsh Vice President and Assistant Treasurer
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, 1999
Edgewood Services, Inc., Distributor [Logo of WesBanco Wheeling]
Cusip 951025204 Investment Adviser
G02160-08 (9/99) A Subsidiary of WesBanco, Inc.
WestMark
West Virginia Municipal Bond Fund (S)M
West Virginia Municipal Bond Fund
Semi-Annual Report
July 31, 1999
[Logo of WesMark Funds(SM)
President's Message
- -------------------------------------------------------------------------------
Dear Shareholder:
I am pleased to present the Semi-Annual Report to Shareholders for WesMark West
Virginia Municipal Bond Fund. This report covers the six-month period from
February 1, 1999 through July 31, 1999. It gives you a complete picture of the
fund's operations, followed by a complete listing 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 investment grade 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. The fund's net asset value declined by $0.37
due to market conditions, and as a result, the fund's total return was
(1.48%).** At the end of the reporting period, the fund's assets totaled more
than $66.6 million.
Thank you for selecting WesMark West Virginia Municipal Bond Fund to help your
money earn double tax-free income.
Sincerely,
[logo of Edward C. Gonzales]
/s/ Edward C. Gonzales
Edward C. Gonzales
President
September 15, 1999
* 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, 1999 (unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal Credit Value
Amount Rating*
- ------------------------------------------------------------------------ -----------------
- ---------------------
<S> <C> <C> <C>
Long-Term Municipals -- 96.3%
- ------------------------------------------------------------------------
West Virginia--96.3%
--------------------------------------------------
$ 500,000 Berkeley County, WV, Board of Education, GO UT, AAA $
481,860
4.50% (FGIC INS)/(Original Issue Yield: 5.30%),
6/1/2009
--------------------------------------------------
360,000 Berkeley County, WV, Board of Education, GO UT A+
363,678
Refunding Bonds, 5.45%, 4/1/2000
--------------------------------------------------
1,030,000 Berkeley County, WV, Board of Education, GO UT, AAA
1,082,976
5.75% (FGIC INS), 6/1/2003
--------------------------------------------------
100,000 Brooke County, WV, Board of Education, GO UT AAA
104,769
Refunding Bonds, 8.625% (AMBAC INS), 8/1/2000
--------------------------------------------------
100,000 Brooke County, WV, Board of Education, GO UT AAA
108,834
Refunding Bonds, 8.75% (AMBAC INS), 8/1/2001
--------------------------------------------------
1,350,000 Cabell County, WV, Board of Education, GO UT, AAA
1,452,775
6.50% (MBIA INS), 5/1/2003
--------------------------------------------------
500,000 Cabell County, WV, Board of Education, GO UT, A+
503,910
4.60% (Original Issue Yield: 4.70%), 5/1/2003
--------------------------------------------------
500,000 Cabell County, WV, Board of Education, GO UT, AAA
537,794
6.00% (MBIA INS), 5/1/2006
--------------------------------------------------
100,000 Cabell, Putnam & Wayne County's, WV, Single Family AAA
113,287
Residence Mortgage Revenue Bonds, 7.375% (FGIC
INS), 4/1/2010
--------------------------------------------------
160,000 Charles Town, WV, Residential Mortgage Revenue A1
163,772
Bonds, 6.20%, 3/1/2011
--------------------------------------------------
355,000 Charles Town, WV, Revenue Refunding Bonds, 5.00% AA
342,058
(Original Issue Yield: 5.15%), 10/1/2013
--------------------------------------------------
340,000 Charles Town, WV, Revenue Refunding Bonds, 5.00%, AA
331,336
10/1/2012
--------------------------------------------------
125,000 Charleston, WV, Building Commission, Revenue NR
121,635
Bonds, 5.60% (Original Issue Yield: 5.60%),
6/1/2019
--------------------------------------------------
235,000 Charleston, WV, Building Commission, Revenue NR
235,000
Bonds, 5.85% (Original Issue Yield: 5.85%),
6/1/2019
--------------------------------------------------
865,000 Charleston, WV, Building Commission, Subordinate NR
895,876
Bonds, 6.00% (Charleston Town Center Parking),
12/1/2010
--------------------------------------------------
1,000,000 Charleston, WV, Urban Renewal Authority, Public AAA
975,017
Improvement Revenue Bonds, 5.25% (FSA LOC),
12/15/2018
--------------------------------------------------
355,000 Charleston, WV, GO UT, 7.20%, 10/1/2003 A1
392,602
--------------------------------------------------
500,000 Fairmont, WV, Waterworks , (Series 1999), 5.25% Aaa
490,308
(AMBAC LOC), 7/1/2017
--------------------------------------------------
2,235,000 Fairmont, WV, Waterworks , Water Utility Aaa
2,110,995
Improvement Revenue Bonds, 5.00% (AMBAC LOC),
7/1/2019
--------------------------------------------------
250,000 Harrison County, WV, Board of Education, GO UT, AAA
254,674
6.20% (FGIC INS), 5/1/2000
--------------------------------------------------
500,000 Harrison County, WV, Board of Education, GO UT, AAA
549,257
6.40% (FGIC INS)/(Original Issue Yield: 6.45%),
5/1/2006
--------------------------------------------------
680,000 Harrison County, WV, Building Commission, Health, Aaa
671,123
Hospital, Home Improvements Revenue Bonds, 5.15%
(Original Issue Yield: 5.32%), 4/1/2018
--------------------------------------------------
410,000 Harrison County, WV, County Commission, Special AAA
443,617
Obligation Refunding Bonds, 6.35% (Original Issue
Yield: 6.45%), 5/15/2004
--------------------------------------------------
420,000 Jackson County, WV, Revenue Bonds, 7.375% (FGIC AAA
502,070
INS), 6/1/2010
--------------------------------------------------
250,000 Jefferson County, WV, Board of Education, School AAA
262,508
Improvement Bonds, 6.85% (FGIC INS), 7/1/2001
--------------------------------------------------
750,000 Kanawha County, WV, Commercial Development, A
804,709
Revenue Refunding Bonds, 6.50% (May Department
Stores Co.), 6/1/2003
--------------------------------------------------
2,025,000 Kanawha County, WV, Pollution Control Revenue Baa2
2,212,766
Bonds, 7.35% (Union Carbide Corp.), 8/1/2004
--------------------------------------------------
500,000 Lewis County, WV, Revenue Bonds, 10.375%
515,094
(Crestview Manor Project), 8/1/2019
--------------------------------------------------
285,000 Logan County, WV, Revenue Bonds, 8.00% (Logan NR
340,325
County Health Care Center Limited Partnership
Project), 12/1/2009
--------------------------------------------------
100,000 Marion County, WV, Single Family Mortgage, Revenue AAA
106,497
Bonds, 7.20% (FGIC INS), 8/1/2001
--------------------------------------------------
110,000 Marshall County, WV, Special Obligations Bonds, AAA
120,353
6.50% (Original Issue Yield: 6.65%), 5/15/2010
--------------------------------------------------
355,000 Mason County, WV, Pollution Control Revenue Bonds, AAA
350,661
5.45% (Ohio Power Co.)/(AMBAC INS)/(Original
Issue Yield: 5.47%), 12/1/2016
--------------------------------------------------
785,000 Ohio County, WV, Board of Education, GO UT AAA
755,566
Refunding Bonds, 5.125% (MBIA INS)/(Original
Issue Yield: 5.375%), 6/1/2018
--------------------------------------------------
535,000 Ohio County, WV, Board of Education, GO UT A+
515,550
Refunding Bonds, 5.125% (Original Issue Yield:
5.375%), 6/1/2018
--------------------------------------------------
1,000,000 Ohio County, WV, Board of Education, GO UT, 5.00% A+
970,773
(Original Issue Yield: 5.25%), 6/1/2013
--------------------------------------------------
350,000 Ohio County, WV, Board of Education, GO UT, 7.00%, A+
382,676
6/1/2003
--------------------------------------------------
530,000 Ohio County, WV, Board of Education, GO UT, 7.00%, A+
587,939
6/1/2004
--------------------------------------------------
1,000,000 Ohio County, WV, Revenue Bonds, 4.85% (Ohio Valley A
989,754
Medical Center)/(American Capital Access INS),
1/1/2008
--------------------------------------------------
500,000 Parkersburg, WV, Waterworks & Sewer Systems, AAA
506,411
Revenue Refunding Bonds, 4.75% (FSA
INS)/(Original Issue Yield: 4.80%), 3/1/2002
--------------------------------------------------
400,000 Parkersburg, WV, Waterworks & Sewer Systems, AAA
406,826
Revenue Refunding Bonds, 4.85% (FSA
INS)/(Original Issue Yield: 4.90%), 3/1/2003
--------------------------------------------------
500,000 Pleasants County, WV, PCR, Revenue Refunding AAA
529,942
Bonds, 6.15% (West Penn Power Co.)/(AMBAC INS),
5/1/2015
--------------------------------------------------
475,000 Pleasants County, WV, PCR, Revenue Refunding AAA
501,895
Bonds, 6.15% (Potomac Edison Co.)/(MBIA INS),
5/1/2015
--------------------------------------------------
475,000 Raleigh County, WV, Revenue Refunding Bonds, NR
486,090
5.50%, 6/1/2006
--------------------------------------------------
795,000 Raleigh, Fayette & Nicholas Counties, WV, Aaa
893,831
Refunding Bonds, 6.25% (Original Issue Yield:
6.60%), 8/1/2011
--------------------------------------------------
1,285,000 Randolph County, WV, Revenue Refunding Bonds, Aaa
1,254,599
5.20% (Davis Health Systems, Inc.)/(FSA INS),
11/1/2015
--------------------------------------------------
480,000 South Charleston, WV, Revenue Refunding Bonds, AAA
485,199
4.70% (MBIA INS), 10/1/2001
--------------------------------------------------
1,000,000 South Charleston, WV, Revenue Refunding Bonds, BBB
1,128,906
7.625% (Union Carbide Corp.), 8/1/2005
--------------------------------------------------
500,000 South Charleston, WV, Revenue Bonds, 5.50% (MBIA AAA
507,207
INS), 10/1/2009
--------------------------------------------------
1,000,000 South Charleston, WV, Revenue Refunding Bonds, BBB
958,222
5.10% (Union Carbide Corp.), 1/1/2012
--------------------------------------------------
415,000 Taylor County, WV, GO UT Bonds, 8.40% (Original NR
444,915
Issue Yield: 8.45%), 5/1/2001
--------------------------------------------------
175,000 Weirton, WV, Municipal Hospital Building, Revenue AAA
179,154
Refunding Bonds, 5.75% (Weirton Medical Center,
Inc.)/(AMBAC INS)/(Original Issue Yield: 6.00%),
12/1/2003
--------------------------------------------------
800,000 West Virginia State College, Revenue Bonds, 5.50% AAA
817,846
(AMBAC INS)/(Original Issue Yield: 5.60%),
4/1/2001
--------------------------------------------------
1,000,000 West Virginia State College, Revenue Bonds, 5.75% AAA
1,047,288
(AMBAC INS)/(Original Issue Yield: 5.85%),
4/1/2003
--------------------------------------------------
200,000 West Virginia State College, Revenue Bonds, 5.75% AAA
210,926
(AMBAC INS)/(Original Issue Yield: 5.95%),
4/1/2004
--------------------------------------------------
195,000 West Virginia Housing Development Fund, Revenue AAA
194,822
Refunding Bonds, 4.90%, 5/1/2004
--------------------------------------------------
165,000 West Virginia Housing Development Fund, Revenue AAA
165,734
Refunding Bonds, 5.15%, 5/1/2006
--------------------------------------------------
285,000 West Virginia Housing Development Fund, Revenue AAA
289,554
Refunding Bonds, 5.35%, 5/1/2008
--------------------------------------------------
275,000 West Virginia Housing Development Fund, Revenue AAA
288,708
Refunding Bonds, 6.70%, 5/1/2009
--------------------------------------------------
735,000 West Virginia Housing Development Fund, Revenue AAA
744,674
Bonds, 5.35%, 11/1/2010
--------------------------------------------------
250,000 West Virginia School Building Authority, Revenue AAA
243,637
Refunding Bonds, 5.25%, 7/1/2021
--------------------------------------------------
3,720,000 West Virginia School Building Authority, Revenue AAA
3,895,242
Bonds, 5.625% (MBIA INS)/(Original Issue Yield:
5.90%), 7/1/2003
--------------------------------------------------
180,000 West Virginia School Building Authority, Revenue AAA
183,170
Bonds, 5.70% (MBIA INS)/(Original Issue Yield:
5.75%), 7/1/2000
--------------------------------------------------
150,000 West Virginia School Building Authority, Revenue AAA
154,515
Bonds, 5.80% (MBIA INS)/(Original Issue Yield:
5.90%), 7/1/2001
--------------------------------------------------
855,000 West Virginia School Building Authority, Revenue AAA
887,924
Bonds, 6.25% (MBIA INS), 7/1/2001
--------------------------------------------------
100,000 West Virginia School Building Authority, Revenue AAA
109,918
Bonds, 6.75% (MBIA INS)/(Original Issue Yield:
7.00%), 7/1/2004
--------------------------------------------------
1,300,000 West Virginia School Building Authority, Revenue AAA
1,362,914
Bonds, 6.75% (MBIA INS)/(United States Treasury
PRF)/(Original Issue Yield: 7.148%), 7/1/2000
(@102)
--------------------------------------------------
300,000 West Virginia School Building Authority, Revenue AAA
314,566
Bonds, 6.80% (MBIA INS)/(Original Issue Yield:
6.85%), 7/1/2001
--------------------------------------------------
240,000 West Virginia State Building Commission Lease, AAA
233,167
(Series B), 4.60% (West Virginia Jail and
Correctional)/(AMBAC LOC)/(Original Issue Yield:
4.65%), 7/1/2010
--------------------------------------------------
150,000 West Virginia State Building Commission Lease, AAA
149,009
(Series C), 4.50% (West Virginia Jail and
Correctional)/(AMBAC LOC), 7/1/2007
--------------------------------------------------
150,000 West Virginia State Building Commission Lease, AAA
147,508
(Series C), 4.50% (West Virginia Jail and
Correctional)/(AMBAC LOC)/(Original Issue Yield:
4.55%), 7/1/2008
--------------------------------------------------
2,000,000 West Virginia State Building Commission Lease, AAA
1,989,706
Revenue Refunding Bonds, 5.375% (AMBAC
LOC)/(Original Issue Yield: 5.04%), 7/1/2021
--------------------------------------------------
100,000 West Virginia State Building Commission Lease, AAA
102,532
Revenue Bonds (Series A), 6.50% (West Virginia
Regional Jail & Correction)/(MBIA INS)/(Original
Issue Yield: 6.60%), 7/1/2000
--------------------------------------------------
190,000 West Virginia State Building Commission Lease, AAA
186,979
Revenue Bonds, 4.50% (West Virginia Jail and
Correctional)/(AMBAC INS)/(Original Issue Yield:
4.55%), 7/1/2008
--------------------------------------------------
870,000 West Virginia State Hospital Finance Authority, Aaa
866,615
Refunding Bonds, 5.00% (FSA INS), 8/1/2009
--------------------------------------------------
1,000,000 West Virginia State Hospital Finance Authority, AAA
945,482
Revenue Refunding Bonds, 5.00% (West Virginia
University Hospital, Inc.)/(MBIA INS)/(Original
Issue Yield: 5.55%), 6/1/2016
--------------------------------------------------
200,000 West Virginia State Hospital Finance Authority, AAA
209,587
Revenue Bonds (Series A), 5.60% (Cabell
Huntington Hospital)/(AMBAC INS)/(Original Issue
Yield: 5.75%), 1/1/2005
--------------------------------------------------
300,000 West Virginia State Hospital Finance Authority, Aaa
296,479
Revenue Bonds, 4.70% (FSA LOC), 8/1/2006
--------------------------------------------------
700,000 West Virginia State Hospital Finance Authority, AAA
710,790
Revenue Bonds, 4.90% (West Virginia University
Hospital, Inc.)/(MBIA INS)/(Original Issue Yield:
5.00%), 6/1/2004
--------------------------------------------------
1,000,000 West Virginia State Hospital Finance Authority, BBB-
1,002,212
Revenue Bonds, 5.00% (Fairmont General Hospital,
Inc.), 11/1/2004
--------------------------------------------------
220,000 West Virginia State Hospital Finance Authority, AAA
224,559
Revenue Bonds, 5.00% (West Virginia University
Hospital, Inc.)/(MBIA INS)/(Original Issue Yield:
5.10%), 6/1/2005
--------------------------------------------------
1,750,000 West Virginia State Hospital Finance Authority, AAA
1,820,989
Revenue Bonds, 5.75% (Charleston Area Medical
Center)/(MBIA INS)/(Original Issue Yield: 5.98%),
9/1/2013
--------------------------------------------------
180,000 West Virginia State Hospital Finance Authority, BBB-
192,716
Revenue Bonds, 6.75% (Original Issue Yield:
6.85%), 3/1/2014
--------------------------------------------------
1,500,000 West Virginia State Hospital Finance Authority, Aaa
1,494,567
Revenue Refunding Bonds, 4.75% (Department of
Health & Human Resources)/(FSA INS)/(Original
Issue Yield: 4.80%), 8/1/2008
--------------------------------------------------
500,000 West Virginia State University, Revenue Refunding AAA
510,991
Bonds, 5.50% (AMBAC INS)/(Original Issue Yield:
5.60%), 4/1/2001
--------------------------------------------------
100,000 West Virginia State, GO UT Bonds, 6.00% (Original AA-
100,638
Issue Yield: 6.05%), 6/1/2002
--------------------------------------------------
1,000,000 West Virginia State, GO UT Highway Improvement AAA
1,021,489
Bonds, 5.25%, 6/1/2010
--------------------------------------------------
900,000 West Virginia State, GO UT Highway Improvement AA-
895,748
Bonds, 5.10% (Original Issue Yield: 5.17%),
6/1/2012
--------------------------------------------------
2,000,000 West Virginia State, GO UT Water Utility & Sewer AAA
1,137,128
Improvements (Original Issue Yield: 4.90%),
11/1/2010
--------------------------------------------------
235,000 West Virginia University Board of Regents, Revenue AAA
250,393
Refunding Bonds, 6.00% (MBIA INS)/(Original Issue
Yield: 6.037%), 4/1/2004
--------------------------------------------------
70,000 West Virginia University Board of Regents, Revenue AAA
73,241
Bonds, 5.90% (MBIA INS), 4/1/2004
--------------------------------------------------
635,000 West Virginia University Board of Regents, Revenue A+
672,294
Bonds, 5.90%, 4/1/2004
--------------------------------------------------
400,000 West Virginia University, Refunding Bond (Series AAA
395,026
A), 4.85% (AMBAC INS)/(Original Issue Yield:
4.95%), 5/1/2010
--------------------------------------------------
1,000,000 West Virginia University, Revenue Bonds (Series AAA
958,865
B), 5.00% (West Virginia University
Project)/(AMBAC INS)/(Original Issue Yield:
5.19%), 5/1/2015
--------------------------------------------------
100,000 West Virginia University, Revenue Bonds, 5.50% AAA
104,180
(AMBAC INS)/(Original Issue Yield: 5.55%),
4/1/2009
--------------------------------------------------
2,015,000 West Virginia Various Forty-Four Municipalities,
2,035,370
Series A, 5.00%, 8/1/2008
--------------------------------------------------
135,000 West Virginia Water Development Authority, AAA
127,647
Refunding Revenue Bonds, 5.00% (Original Issue
Yield: 6.02%), 11/1/2018
--------------------------------------------------
225,000 West Virginia Water Development Authority, Revenue AAA
233,129
Refunding Bonds, 5.30% (FSA INS), 11/1/2002
--------------------------------------------------
550,000 West Virginia Water Development Authority, Revenue AAA
556,096
Refunding Bonds, 5.80% (FSA INS)/(Original Issue
Yield: 5.85%), 11/1/2012
--------------------------------------------------
765,000 West Virginia Water Development Authority, Water A-
818,535
Revenue Bonds, 7.70% (United States Treasury
PRF)/(Original Issue Yield: 7.822%), 11/1/2000
(@102)
Principal Credit Value
Amount Rating*
or Shares
--------------------------------------------------
$ 425,000 Wetzel County, WV, Board of Education, GO UT, AAA $
472,272
7.00% (MBIA INS)/(Original Issue Yield: 7.15%),
5/1/2004
--------------------------------------------------
500,000 Wheeling, WV, Waterworks & Sewer Systems, Revenue Aaa
507,071
Refunding Bonds, 4.85% (FGIC INS)/(Original Issue
Yield: 4.90%), 6/1/2005
--------------------------------------------------
500,000 Wheeling, WV, Waterworks & Sewer Systems, Revenue Aaa
504,884
Refunding Bonds, 4.90% (FGIC INS)/(Original Issue
Yield: 5.00%), 6/1/2006
--------------------------------------------------
300,000 Wheeling, WV, Waterworks & Sewer Systems, Series-C AAA
319,288
Revenue Bonds, 6.60% (FGIC INS)/(United States
Treasury PRF)/(Original Issue Yield: 6.691%),
6/1/2002 (@100)
--------------------------------------------------
125,000 Wheeling, WV, GO UT, 7.50%, 6/1/2000 Baa1
128,730
--------------------------------------------------
155,000 Wheeling, WV, GO UT, 7.50%, 6/1/2003 Baa1
171,893
--------------------------------------------------
195,000 Wood County, WV Building Commission, Revenue AAA
Refunding Bonds, 6.625% (St. Joseph Hospital,
Parkersburg)/(AMBAC INS), 1/1/2006
204,307
--------------------------------------------------
- -----------
Total Long-Term Municipals (identified cost
$64,113,905)
$64,111,141
--------------------------------------------------
- -----------
Mutual Fund--2.8%
- ------------------------------------------------------------------------
1,834,087 Federated Tax-Free Obligations Fund (at net asset
value)
1,834,087
--------------------------------------------------
- -----------
Total Investments (identified cost $65,947,992)(1)
$65,945,228
--------------------------------------------------
- -----------
</TABLE>
* Please refer to the Appendix of the Statement of Additional Information for
an explanation of the credit ratings. Current credit ratings are unaudited.
(1) The cost of investments for federal tax purposes amounts to $65,947,992.
The net unrealized depreciation of investments on a federal tax basis amounts
to ($2,764) which comprised $771,450 appreciation and ($774,214) depreciation
at July 31, 1999.
Note: The categories of investments are shown as a percentage of net assets
($66,571,979) at July 31, 1999.
The following acronyms are used throughout this portfolio:
AMBAC--American Municipal Bond Assurance Corporation FGIC--Financial Guaranty
Insurance Company FSA--Financial Security Assurance GO--General Obligation
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, 1999 (unaudited)
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
- ------------------------------------------------------------------------------------------------
Total investments in securities, at value $65,945,228
(identified and tax cost $65,947,992)
- ------------------------------------------------------------------------------------------------
Cash 28,226
- ------------------------------------------------------------------------------------------------
Income receivable 876,258
- ------------------------------------------------------------------------------------------------
Unamortized organizational costs 3,341
- ------------------------------------------------------------------------------------------------ ------------
Total assets 66,853,053
- ------------------------------------------------------------------------------------------------
Liabilities:
- ------------------------------------------------------------
Income distribution payable $236,589
- ------------------------------------------------------------
Accrued expenses 44,485
- ------------------------------------------------------------ ----------
Total liabilities 281,074
- ------------------------------------------------------------------------------------------------ ------------
Net Assets for 6,633,038 shares outstanding $66,571,979
- ------------------------------------------------------------------------------------------------ ------------
Net Assets Consist of:
- ------------------------------------------------------------------------------------------------
Paid in capital $66,420,648
- ------------------------------------------------------------------------------------------------
Net unrealized depreciation of investments (2,764)
- ------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 153,918
- ------------------------------------------------------------------------------------------------
Undistributed net investment income 177
- ------------------------------------------------------------------------------------------------ -------------
Total Net Assets $66,571,979
- ------------------------------------------------------------------------------------------------ -------------
Net Asset Value, Offering Price and Redemption
Proceeds Per Share:
- ------------------------------------------------------------------
$66,571,979 [divide] 6,633,038 shares outstanding $10.04
- -------------------------------------------------------------------------------
</TABLE>
(See Notes which are an integral part of the Financial Statements)
West Virginia Municipal Bond Fund
Statement of Operations
Six Months Ended July 31, 1999 (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Investment Income:
- ------------------------------------------------------------------
Interest $ 1,645,387
- ------------------------------------------------------------------
Expenses:
- ------------------------------------------------------------------
Investment advisory fee $199,856
- ------------------------------------------------------------------
Administrative personnel and services fee 46,818
- ------------------------------------------------------------------
Custodian fees 6,407
- ------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses 5,832
- ------------------------------------------------------------------
Directors'/Trustees' fees 2,179
- ------------------------------------------------------------------
Auditing fees 10,867
- ------------------------------------------------------------------
Legal fees 3,859
- ------------------------------------------------------------------
Portfolio accounting fees 27,942
- ------------------------------------------------------------------
Share registration costs 6,835
- ------------------------------------------------------------------
Printing and postage 7,703
- ------------------------------------------------------------------
Insurance premiums 1,497
- ------------------------------------------------------------------
Miscellaneous 1,689
- ------------------------------------------------------------------ --------
Total expenses 321,484
- ------------------------------------------------------------------
Waiver --
- ------------------------------------------------------------------
Waiver of investment advisory fee (99,928)
- ------------------------------------------------------------------ --------
Net expenses 221,556
- ----------------------------------------------------------------------------------- ------------
Net investment income 1,423,831
- ----------------------------------------------------------------------------------- ------------
Realized and Unrealized Gain (Loss) on Investments:
- -----------------------------------------------------------------------------------
Net realized gain on investments 154,111
- -----------------------------------------------------------------------------------
Net change in unrealized appreciation of investments (2,609,774)
- ----------------------------------------------------------------------------------- ------------
Net realized and unrealized loss on investments (2,455,663)
- ----------------------------------------------------------------------------------- ------------
Change in net assets resulting from operations $(1,031,832)
- ----------------------------------------------------------------------------------- ------------
</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) Year Ended
July 31, 1999 January 31, 1999
-------------- ----------------
<S> <C> <C>
Increase (Decrease) in Net Assets:
- --------------------------------------------------------------
Operations--
- --------------------------------------------------------------
Net investment income $ 1,423,831 $ 2,762,997
- --------------------------------------------------------------
Net realized gain on investments ($154,111 and $57,103,
respectively, as computed for federal tax purposes) 154,111 57,103
- --------------------------------------------------------------
Net change in unrealized appreciation (2,609,774) 715,928
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from operations (1,031,832) 3,536,028
- -------------------------------------------------------------- ----------- -----------
Distributions to Shareholders--
- --------------------------------------------------------------
Distributions from net investment income (1,423,831) (2,762,997)
- -------------------------------------------------------------- ----------- -----------
Distributions from net realized gains (4,641) (57,098)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from distributions to
shareholders (1,428,472) (2,820,095)
- -------------------------------------------------------------- ----------- -----------
Share Transactions--
- --------------------------------------------------------------
Proceeds from sale of shares 5,491,977 8,667,474
- --------------------------------------------------------------
Net asset value of shares issued to shareholders
in payment of distributions declared 90,619 212,751
- --------------------------------------------------------------
Cost of shares redeemed (3,983,978) (8,543,249)
- -------------------------------------------------------------- ----------- -----------
Change in net assets resulting from share transactions 1,598,618 336,976
- -------------------------------------------------------------- ----------- -----------
Change in net assets (861,686) 1,052,909
- --------------------------------------------------------------
Net Assets:
- --------------------------------------------------------------
Beginning of period 67,433,665 66,380,756
- -------------------------------------------------------------- ----------- -----------
End of period (including undistributed net investment
income of $177 at six months ended July 31,1999 and at
year ended January 31, 1999) $66,571,979 $67,433,665
- -------------------------------------------------------------- ----------- -----------
</TABLE>
(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 Year Period
(unaudited) Ended Ended
July 31, January 31, January
31,
1999 1999 1998 (1)
------------- -----------
- -------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 10.41 $ 10.30 $ 10.00
- ---------------------------------------------------------
Income from investment operations
- ---------------------------------------------------------
Net investment income 0.22 0.43 0.35
- ---------------------------------------------------------
Net realized and unrealized gain (loss) on investments (0.37) 0.12 0.31
- --------------------------------------------------------- ------------ ------------ ----------
Total from investment operations (0.15) 0.55 0.66
- --------------------------------------------------------- ------------ ------------ ----------
Less distributions
- ---------------------------------------------------------
Distributions from net investment income (0.22) (0.43)
(0.35)
- --------------------------------------------------------- ------------ ------------ ----------
Distributions from net realized gain on investments 0.00(2) (0.01)
(0.01)
- --------------------------------------------------------- ------------ ------------ ----------
Total distributions (0.22) (0.44)
(0.36)
- --------------------------------------------------------- ------------ ------------ ----------
Net asset value, end of period $ 10.04 $ 10.41 $ 10.30
- --------------------------------------------------------- ------------ ------------ ----------
Total return (3) (1.48%) 5.46%
6.64%
- ---------------------------------------------------------
Ratios to average net assets
- ---------------------------------------------------------
Expenses (4) 0.97%(5) 1.03%
1.04%(5)
- ---------------------------------------------------------
Net investment income (4) 3.97%(5) 3.91%
3.96%(5)
- ---------------------------------------------------------
Expenses (after waivers) 0.67%(5) 0.74%
0.74%(5)
- ---------------------------------------------------------
Net investment income (after waivers) 4.27%(5) 4.20%
4.26%(5)
- ---------------------------------------------------------
Supplemental data
- ---------------------------------------------------------
Net assets, end of period (000 omitted) $66,572 $67,434 $ 66,381
- ---------------------------------------------------------
Portfolio turnover 16% 17%
6%
- ---------------------------------------------------------
</TABLE>
(1) Reflects operations for the period from Apri 14, 1997 (date of initial
public investment) to January 31, 1998.
(2) Amount represents less than $0.01 per share.
(3) Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.
(4) During the period, certain fees were voluntarily waived. If such voluntary
waivers had not occured, the ratios would have been as indicated.
(5) Computed on an annualized basis.
(See Notes which are an integral part of the Financial Statements)
WesMark West Virginia Municipal Bond Fund
Notes to Financial Statements
July 31, 1999 (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.
2. Significant Accounting Policies
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. These
policies are in conformity with generally accepted accounting principles.
Investment Valuations -- Municipal bonds are valued by an independent
pricing service, taking into consideration yield, liquidity, risk, credit
quality, coupon, maturity, type of issue, and any other factors or market
data the pricing service deems relevant. Short-term securities are valued at
the prices provided by an independent pricing service. However, short-term
securities with remaining maturities of sixty days or less at the time of
purchase may be valued at amortized cost, which approximates fair market
value. Investments in other open-end regulated investment companies are
valued at net asset value.
Investment Income, Expenses and Distributions -- Interest income and
expenses are accrued daily. Bond premium and discount, if applicable, are
amortized as required by the Internal Revenue Code, as amended (the "Code").
Distributions to shareholders are recorded on the ex-dividend date.
Federal Taxes -- It is the Fund's policy to comply with the provisions of
the Code applicable to regulated investment companies and to distribute to
shareholders each year substantially all of its income. Accordingly, no
provisions for federal tax are necessary.
When-Issued and Delayed Delivery Transactions -- The Fund may engage in
when-issued or delayed delivery transactions. The Fund records when-issued
securities on the trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked to market daily and begin earning interest on the
settlement date.
Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts of assets, liabilities,
expenses and revenues reported in the financial statements. Actual results
could differ from those estimated.
Other -- Investment transactions are accounted for on the trade date.
3. Shares of Beneficial Interest
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in shares were as follows:
<TABLE>
<CAPTION>
Six Months Period
Ended Ended
July 31, January 31,
1999 1999
----------- ------------
<S> <C> <C>
Shares sold 536,754 840,868
- --------------------------------------------------------------
Shares issued to shareholders in payment of distributions
declared 8,851 20,618
- --------------------------------------------------------------
Shares redeemed (389,530) (828,516)
- -------------------------------------------------------------- ----------- ------------
Net change resulting from share transactions 156,075 32,970
- -------------------------------------------------------------- ----------- ------------
</TABLE>
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 six
months ended July 31, 1999, 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 six months ended July 31, 1999, 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 six months ended July 31, 1999, the
Fund engaged in purchase and sale transactions with mutual funds that have
common 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 $13,220,658 and $11,716,320, respectively.
Organizational Expenses -- Organizational expenses of $6,169 were borne
initially by the Adviser. The Fund has reimbursed the Adviser for the
expenses. These expenses have been deferred and are being amortized over the
five-year period following the Fund's effective date. For the six months
ended July 31, 1999, the Fund expensed $1,594 of organizational costs.
Other Affiliated Parties and Transactions -- Pursuant to an exemptive order
issued by the SEC, the Fund may invest in certain affiliated money market
funds. As of July 31, 1999, the Fund owned 0.05% of outstanding shares of
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 six
months ended July 31, 1999, were as follows:
Purchases $11,197,982
- --------------------------------------------------------------- -----------
Sales $10,654,362
- --------------------------------------------------------------- -----------
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, 1999, 59.2% 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 23.9% 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
Chairman
Thomas G. Bigley Edward C. Gonzales
President and Treasurer
John T. Conroy, Jr. J. Christopher Donahue
Executive Vice President
Nicholas P. Constantakis John W. McGonigle
Executive Vice President and Secretary
John F. Cunningham Richard B. Fisher
Vice President
Lawrence D. Ellis, M.D. C. Christine Thomson
Vice President and Assistant Treasurer
Edward C. Gonzales C. Todd Gibson
Assistant Secretary
Peter E. Madden
Charles F. Mansfield, Jr.
John E. Murray, Jr., J.D., S.J.D.
Marjorie P. Smuts
John S. Walsh
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 APPEARS HERE]
Semi-Annual Report
Dated July 31, 1999
Edgewood Services, Inc. Distributor
Cusip 951025105
G02160-07 (9/99)
[LOGO APPEARS HERE]
Investment Adviser
A Subsidiary of WesBanco, Inc.
