Lake Shore Family of Funds
--------------------------
Equity Fund
Semi-Annual Report
June 30, 1998
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
------------------ -------------
LAKE SHORE FUND GROUP, LLC COUNTRYWIDE FUND SERVICES, INC.
8280 Montgomery Road 312 Walnut Street
Suite 302 P.O. Box 5354
Cincinnati, Ohio 45243 Cincinnati, Ohio 45201-5354
1.513.794.1440 1.800.266.9532
<PAGE>
LAKE SHORE EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
ASSETS
Investment securities, at market value (Cost $225,851) $228,207
Dividends receivable 634
Receivable from Adviser (Note 3) 1,709
Organization expenses, net (Note 1) 20,444
Other assets 5,560
--------
TOTAL ASSETS 256,554
--------
LIABILITIES
Accrued expenses 710
--------
TOTAL LIABILITIES 710
--------
NET ASSETS $255,844
========
NET ASSETS CONSIST OF:
Paid-in capital $253,478
Undistributed net investment income 8
Accumulated net realized gains from security transactions 2
Net unrealized appreciation on investments 2,356
--------
NET ASSETS $255,844
========
Shares of beneficial interest outstanding
(unlimited number of shares
authorized, no par value) 25,235
========
Net asset value and redemption price per share (Note 1) $ 10.14
========
Maximum offering price per share (Note 1) $ 10.67
========
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE EQUITY FUND
STATEMENT OF OPERATIONS
For the Period March 2, 1998 (commencement of operations) to June 30, 1998
(Unaudited)
INVESTMENT INCOME
Dividends $ 2,671
--------
EXPENSES
Accounting services fees (Note 3) 6,000
Transfer agent fees (Note 3) 3,600
Insurance expense 3,093
Administrative services fees (Note 3) 3,000
Custodian fees 2,440
Amortization of organization expenses (Note 1) 2,272
Registration fees 1,730
Postage and supplies 1,564
Investment advisory fees (Note 3) 749
Trustees' fees and expenses 625
Printing of shareholder reports 283
Pricing costs 60
--------
TOTAL EXPENSES 25,416
Fees waived and expenses reimbursed by the Adviser (Note 3) (24,208)
--------
NET EXPENSES 1,208
--------
NET INVESTMENT INCOME 1,463
--------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 2
Net increase in unrealized appreciation on investments 2,356
--------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 2,358
--------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 3,821
========
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
For the Period March 2, 1998 (commencement of operations) to June 30, 1998
(Unaudited)
FROM OPERATIONS:
Net investment income $ 1,463
Net realized gains from security transactions 2
Net increase in unrealized appreciation on investments 2,356
---------
Net increase in net assets from operations 3,821
---------
FROM DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (1,455)
---------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 153,033
Net asset value of shares issued in
reinvestment of distributions to shareholders 1,455
Payments for shares redeemed (10)
---------
Net increase in net assets from capital share transactions 154,478
---------
TOTAL INCREASE IN NET ASSETS 156,844
NET ASSETS:
Beginning of period (Note 1) 99,000
---------
End of period $ 255,844
=========
UNDISTRIBUTED NET INVESTMENT INCOME $ 8
=========
CAPITAL SHARE ACTIVITY:
Shares sold 15,192
Shares issued in reinvestment of
distributions to shareholders 144
Shares redeemed (1)
---------
Net increase in shares outstanding 15,335
Shares outstanding, beginning of period (Note 1) 9,900
---------
Shares outstanding, end of period 25,235
=========
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE EQUITY FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding
Throughout the Period Ended June 30, 1998 (a)
(Unaudited)
Net asset value at beginning of period $ 10.00
-----------
Income from investment operations:
Net investment income 0.06
Net realized and unrealized gains on investments 0.14
-----------
Total from investment operations 0.20
-----------
Dividends from net investment income (0.06)
-----------
Net asset value at end of period $ 10.14
===========
Total return (b) 1.98%
===========
Net assets at end of period $ 255,844
===========
Ratio of net expenses to average net assets (c) 1.61%(d)
Ratio of net investment income to average net assets 1.95%(d)
Portfolio turnover rate 0%
(a) Represents the period from the initial public offering of shares (March 2,
1998) through June 30, 1998.
(b) Total return shown excludes the effect of applicable sales loads and is not
annualized.
(c) Ratio of expenses to average net assets assuming no waiver of fees or
reimbursement of expenses by the Adviser was 33.83%(d) (Note 3).
(d) Annualized.
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
Market
Shares Value
------ -----
COMMON STOCKS - 59.7%
ENERGY - 14.6%
95 Chevron Corp. $ 7,891
110 Exxon Corp. 7,844
275 Occidental Petroleum Corp. 7,425
95 Schlumberger, Ltd. 6,490
130 Texaco, Inc. 7,759
-----------
37,409
-----------
CONSUMER, NON-CYCLICAL - 12.8%
70 Bristol-Myers Squibb Co. 8,046
145 Heinz (H.J.) Co. 8,138
70 Merck & Co., Inc. 9,362
130 Sara Lee Corp. 7,272
-----------
32,818
-----------
CONSUMER, CYCLICAL - 11.9%
3 Abercrombie & Fitch Co. - Class A* 132
155 Chrysler Corp. 8,738
240 Ford Motor Co. 14,160
225 The Limited, Inc. 7,453
-----------
30,483
-----------
TECHNOLOGY - 8.6%
135 AT&T Corp. 7,712
60 IBM Corp. 6,889
80 United Technologies Corp. 7,400
-----------
22,001
-----------
BASIC MATERIALS - 7.3%
70 Georgia-Pacific Group 4,126
90 Georgia-Pacific Timber Group 2,076
145 International Paper Co. 6,235
135 Weyerhaeuser Co. 6,235
-----------
18,672
-----------
<PAGE>
LAKE SHORE EQUITY FUND
PORTFOLIO OF INVESTMENTS
June 30, 1998
(Unaudited)
Market
Shares Value
------ -----
CONGLOMERATES - 3.4%
95 General Electric Co. $ 8,645
-----------
FINANCIAL SERVICES - 1.1%
36 Associates First Capital Corp. - Class A 2,768
-----------
TOTAL COMMON STOCKS (COST $150,440) $ 152,796
-----------
MONEY MARKETS - 29.5%
75,411 Star Treasury Fund (Cost $75,411) $ 75,411
-----------
TOTAL INVESTMENT SECURITIES (COST $225,851) - 89.2% $ 228,207
OTHER ASSETS IN EXCESS OF LIABILITIES - 10.8% 27,637
-----------
NET ASSETS - 100.0% $ 255,844
===========
* Non-income producing security.
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
1. ORGANIZATION
The Lake Shore Family of Funds (the Trust) is registered under the Investment
Company Act of 1940 (the 1940 Act) as an open-end management investment company.
The Trust was organized as an Ohio business trust under a Declaration of Trust
dated September 3, 1997. The Trust currently offers two separate series of
shares to investors: the Equity Fund and the Balanced Fund (individually, a Fund
and, collectively, the Funds). The Trust was capitalized on December 23, 1997,
when the initial shares of each Fund were purchased at $10.00 per share. The
public offering of shares of the Equity Fund commenced on March 2, 1998. The
Equity Fund had no operations prior to the public offering of shares except for
the initial issuance of shares.
The Equity Fund seeks long-term growth of capital by investing primarily in
common stocks. Dividend and interest income is only an incidental consideration
to the Fund's investment objective.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Equity Fund's significant accounting policies:
Security valuation -- The Fund's portfolio securities are valued as of the close
of business of the regular session of trading on the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Securities traded on a national stock
exchange or quoted by NASDAQ are valued based upon the closing price on the
principal exchange where the security is traded, or, if not traded on a
particular day, at the closing bid price. U.S. Government obligations are valued
at their most recent bid prices as obtained from one or more of the major market
makers for such securities.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The maximum offering price per share is equal to
the net asset value per share plus a sales load equal to 5.26% of the net asset
value (or 5.00% of the offering price). The redemption price per share is equal
to the net asset value per share.
Investment income -- Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
Distributions to shareholders -- The Fund expects to distribute substantially
all of its net investment income, if any, on a quarterly basis. The Fund expects
to distribute any net realized long-term capital gains at least once each year.
Management will determine the timing and frequency of the distributions of any
net realized short-term capital gains.
Organization expenses -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years. In the event any of
the initial shares of a Fund are redeemed during the amortization period, the
redemption proceeds will be reduced by a pro rata portion of any unamortized
organization expenses in the same proportion as the number of initial shares
being redeemed bears to the number of initial shares of the Fund outstanding at
the time of the redemption.
<PAGE>
LAKE SHORE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
As of June 30, 1998, net unrealized appreciation on investments was $2,356 for
federal income tax purposes, of which $8,896 related to appreciated securities
and $6,540 related to depreciated securities based on a federal income tax cost
basis of $225,851.
3. INVESTMENT TRANSACTIONS
During the period ended June 30, 1998, purchases other than short-term
investments, amounted to $150,496 for the Equity Fund. The Fund sold no
securities during the period.
4. TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Trust are also officers of Lake Shore Fund
Group, LLC (the Adviser), of Countrywide Fund Services, Inc. (CFS), the
administrative services agent, shareholder servicing and transfer agent, and
accounting services agent for the Trust, or of CW Fund Distributors, Inc., the
exclusive agent for the distribution of the Fund's shares.
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. The Fund pays the Adviser an investment advisory fee,
computed and accrued daily and paid monthly, at an annual rate of 1.00% of its
average daily net assets.
In order to voluntarily reduce operating expenses during the period ended June
30, 1998, the Adviser waived its entire advisory fee of $749 and reimbursed the
Fund for $23,459 of other operating expenses.
<PAGE>
LAKE SHORE EQUITY FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, CFS supplies non-investment
related administrative and compliance services for the Fund. CFS supervises the
preparation of tax returns, reports to shareholders, reports to and filings with
the Securities and Exchange Commission and state securities commissions, and
materials for meetings of the Board of Trustees. For these services, CFS
receives a monthly fee from the Fund at an annual rate of 0.15% of its average
daily net assets up to $50 million; 0.125% of such net assets from $50 million
to $100 million; and 0.10% of such net assets in excess of $100 million, subject
to a $1,000 minimum monthly fee.
TRANSFER AGENT AGREEMENT
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement, CFS maintains the records of each shareholder's account,
answers shareholders' inquiries concerning their accounts, processes purchases
and redemptions of the Fund's shares, acts as dividend and distribution
disbursing agent and performs other shareholder service functions. For these
services, CFS receives a monthly fee at an annual rate of $20.00 per shareholder
account, subject to a $1,200 minimum monthly fee. In addition, the Fund pays
out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement, CFS calculates the daily
net asset value per share and maintains the financial books and records of the
Fund. For these services, CFS receives a monthly fee of $3,000 from the Fund. In
addition, the Fund pays certain out-of-pocket expenses incurred by CFS in
obtaining valuations of the Fund's portfolio securities.
UNDERWRITING AGREEMENT
Under the terms of an Underwriting Agreement, CW Fund Distributors, Inc. (the
Underwriter) serves as the exclusive agent for the distribution of the Fund's
shares. For these services, the Underwriter earned $474 from underwriting
commissions on the sale of shares during the period ended June 30, 1998.
PLAN OF DISTRIBUTION
The Trust has adopted a Plan of Distribution (the Plan) pursuant to Rule 12b-1
under the 1940 Act. The Plan provides that the Fund may directly incur or
reimburse the Underwriter or the Adviser for certain costs related to the
distribution of the Fund shares, not to exceed 0.25% of average daily net
assets. For the period ended June 30, 1998, the Fund incurred no such expenses
under the Plan.
<PAGE>
Lake Shore Family of Funds
--------------------------
Balanced Fund
Semi-Annual Report
June 30, 1998
(Unaudited)
INVESTMENT ADVISER ADMINISTRATOR
------------------ -------------
LAKE SHORE FUND GROUP, LLC COUNTRYWIDE FUND SERVICES, INC.
8280 Montgomery Road 312 Walnut Street
Suite 302 P.O. Box 5354
Cincinnati, Ohio 45243 Cincinnati, Ohio 45201-5354
1.513.794.1440 1.800.266.9532
<PAGE>
LAKE SHORE BALANCED FUND
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
ASSETS
Cash $ 1,000
Receivable for capital shares sold 285
Organization expenses, net (Note 1) 22,716
Other assets 5,516
-------
TOTAL ASSETS 29,517
-------
LIABILITIES
Payable to adviser (Note 3) 28,232
-------
TOTAL LIABILITIES 28,232
-------
NET ASSETS $ 1,285
=======
NET ASSETS CONSIST OF:
Paid-in capital $ 1,285
Accumulated net realized gains from security transactions 0
Net unrealized appreciation on investments 0
-------
NET ASSETS $ 1,285
=======
Shares of beneficial interest outstanding
(unlimited number of shares
authorized, no par value) 128
=======
Net asset value and redemption price per share (Note 1) $ 10.00
=======
Maximum offering price per share (Note 1) $ 10.53
=======
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE BALANCED FUND
STATEMENT OF OPERATIONS
For the period from commencement of operations to June 30, 1998 (Note 1)
(Unaudited)
INVESTMENT INCOME
Dividends $ 0
-------
EXPENSES
Insurance expense 3,094
Registration fees 1,730
Postage and supplies 1,476
Trustees' fees and expenses 625
Printing of shareholder reports 283
-------
TOTAL EXPENSES 7,208
Fees waived and expenses reimbursed by the Adviser (Note 3) (7,208)
-------
NET EXPENSES 0
-------
NET INVESTMENT INCOME 0
-------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 0
Net increase in unrealized appreciation on investments 0
-------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 0
-------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 0
=======
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE BALANCED FUND
STATEMENT OF CHANGES IN NET ASSETS
For the period from commencement of operations to June 30, 1998 (Note 1)
(Unaudited)
FROM OPERATIONS:
Net investment income $ 0
Net realized gains from security transactions 0
Net increase in unrealized appreciation on investments 0
------
Net increase in net assets from operations 0
------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 285
Payments for shares redeemed 0
------
Net increase in net assets from capital share transactions 285
------
TOTAL INCREASE IN NET ASSETS 285
NET ASSETS:
Beginning of period (Note 1) 1,000
------
End of period $1,285
======
CAPITAL SHARE ACTIVITY:
Shares sold 28
Shares redeemed 0
------
Net increase in shares outstanding 28
Shares outstanding, beginning of period (Note 1) 100
------
Shares outstanding, end of period 128
======
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE BALANCED FUND
FINANCIAL HIGHLIGHTS
Selected Per Share Data and Ratios for a Share Outstanding
Throughout the Period Ended June 30, 1998 (a)
(Unaudited)
Net asset value at beginning of period $ 10.00
---------
Income from investment operations:
Net investment income 0.00
Net realized and unrealized gains on investments 0.00
---------
Total from investment operations 0.00
---------
Net asset value at end of period $ 10.00
=========
Total return (b) 0.00%
=========
Net assets at end of period $ 1,285
=========
Ratio of net expenses to average net assets (c) 0.00%(d)
Ratio of net investment income to average net assets 0.00%(d)
Portfolio turnover rate 0%
(a) Represents the period from the initial public offering of shares (June 30,
1998).
(b) Total return shown excludes the effect of applicable sales loads and is not
annualized.
(c) Ratio of expenses to average net assets assuming no waiver of fees or
reimbursement of expenses by the Adviser was 560.93%(d) (Note 3).
(d) Annualized.
See accompanying notes to financial statements.
<PAGE>
LAKE SHORE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
1. ORGANIZATION
The Lake Shore Family of Funds (the Trust) is registered under the Investment
Company Act of 1940 (the 1940 Act) as an open-end management investment company.
The Trust was organized as an Ohio business trust under a Declaration of Trust
dated September 3, 1997. The Trust currently offers two separate series of
shares to investors: the Equity Fund and the Balanced Fund (individually, a Fund
and, collectively, the Funds). The Trust was capitalized on December 23, 1997,
when the initial shares of each Fund were purchased at $10.00 per share. The
public offering of shares of the Balanced Fund commenced on June 30, 1998. The
Balanced Fund had no operations prior to the public offering of shares except
for the initial issuance of shares.
The Balanced Fund seeks long-term growth of capital and current income by
investing in a balanced portfolio of common stocks, U.S. Treasury obligations
and money market instruments.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Balanced Fund's significant accounting
policies:
Security valuation -- The Fund's portfolio securities are valued as of the close
of business of the regular session of trading on the New York Stock Exchange
(currently 4:00 p.m., Eastern time). Securities traded on a national stock
exchange or quoted by NASDAQ are valued based upon the closing price on the
principal exchange where the security is traded, or, if not traded on a
particular day, at the closing bid price. U.S. Government obligations are valued
at their most recent bid prices as obtained from one or more of the major market
makers for such securities.
Share valuation -- The net asset value per share of the Fund is calculated daily
by dividing the total value of the Fund's assets, less liabilities, by the
number of shares outstanding. The maximum offering price per share is equal to
the net asset value per share plus a sales load equal to 5.26% of the net asset
value (or 5.00% of the offering price). The redemption price per share is equal
to the net asset value per share.
Investment income -- Dividend income is recorded on the ex-dividend date.
Interest income is accrued as earned. Discounts and premiums on securities
purchased are amortized in accordance with income tax regulations which
approximate generally accepted accounting principles.
Distributions to shareholders -- The Fund expects to distribute substantially
all of its net investment income, if any, on a quarterly basis. The Fund expects
to distribute any net realized long-term capital gains at least once each year.
Management will determine the timing and frequency of the distributions of any
net realized short-term capital gains.
Organization expenses -- Expenses of organization have been capitalized and are
being amortized on a straight-line basis over five years. In the event any of
the initial shares of a Fund are redeemed during the amortization period, the
redemption proceeds will be reduced by a pro rata portion of any unamortized
organization expenses in the same proportion as the number of initial shares
being redeemed bears to the number of initial shares of the Fund outstanding at
the time of the redemption.
<PAGE>
LAKE SHORE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
Security transactions -- Security transactions are accounted for on the trade
date. Securities sold are valued on a specific identification basis.
Estimates -- The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of income and
expenses during the reporting period. Actual results could differ from those
estimates.
Federal income tax -- It is the Fund's policy to comply with the special
provisions of the Internal Revenue Code available to regulated investment
companies. As provided therein, in any fiscal year in which a Fund so qualifies
and distributes at least 90% of its taxable net income, the Fund (but not the
shareholders) will be relieved of federal income tax on the income distributed.
Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also the Fund's intention to declare as dividends in
each calendar year at least 98% of its net investment income (earned during the
calendar year) and 98% of its net realized capital gains (earned during the
twelve months ended October 31) plus undistributed amounts from prior years.
As of June 30, 1998, net unrealized appreciation on investments was $0 for
federal income tax purposes.
3. INVESTMENT TRANSACTIONS
During the period ended June 30, 1998, the Fund made no purchases or sales of
securities.
4. TRANSACTIONS WITH AFFILIATES
Certain trustees and officers of the Trust are also officers of Lake Shore Fund
Group, LLC (the Adviser), of Countrywide Fund Services, Inc. (CFS), the
administrative services agent, shareholder servicing and transfer agent, and
accounting services agent for the Trust, or of CW Fund Distributors, Inc., the
exclusive agent for the distribution of the Fund's shares.
INVESTMENT ADVISORY AGREEMENT
The Fund's investments are managed by the Adviser pursuant to the terms of an
Advisory Agreement. The Fund pays the Adviser an investment advisory fee,
computed and accrued daily and paid monthly, at an annual rate of 1.00% of its
average daily net assets.
In order to voluntarily reduce operating expenses during the period ended June
30, 1998, the Adviser reimbursed the Fund for $7,208 of operating expenses.
<PAGE>
LAKE SHORE BALANCED FUND
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
ADMINISTRATION AGREEMENT
Under the terms of an Administration Agreement, CFS supplies non-investment
related administrative and compliance services for the Fund. CFS supervises the
preparation of tax returns, reports to shareholders, reports to and filings with
the Securities and Exchange Commission and state securities commissions, and
materials for meetings of the Board of Trustees. For these services, CFS
receives a monthly fee from the Fund at an annual rate of 0.15% of its average
daily net assets up to $50 million; 0.125% of such net assets from $50 million
to $100 million; and 0.10% of such net assets in excess of $100 million, subject
to a $1,000 minimum monthly fee.
TRANSFER AGENT AGREEMENT
Under the terms of a Transfer, Dividend Disbursing, Shareholder Service and Plan
Agency Agreement, CFS maintains the records of each shareholder's account,
answers shareholders' inquiries concerning their accounts, processes purchases
and redemptions of the Funds shares, acts as dividend and distribution
disbursing agent and performs other shareholder service functions. For these
services, CFS receives a monthly fee at an annual rate of $20.00 per shareholder
account, subject to a $1,200 minimum monthly fee. In addition, the Fund pays
out-of-pocket expenses including, but not limited to, postage and supplies.
ACCOUNTING SERVICES AGREEMENT
Under the terms of an Accounting Services Agreement, CFS calculates the daily
net asset value per share and maintains the financial books and records of the
Fund. For these services, CFS receives a monthly fee of $2,000 from the Fund. In
addition, the Fund pays certain out-of-pocket expenses incurred by CFS in
obtaining valuations of the Fund's portfolio securities.
UNDERWRITING AGREEMENT
Under the terms of an Underwriting Agreement, CW Fund Distributors, Inc. (the
Underwriter) serves as the exclusive agent for the distribution of the Fund's
shares. No underwriting commissions were earned by the Underwriter on the sale
of shares during the period ended June 30, 1998.
PLAN OF DISTRIBUTION
The Trust has adopted a Plan of Distribution (the Plan) pursuant to Rule 12b-1
under the 1940 Act. The Plan provides that the Fund may directly incur or
reimburse the Underwriter or the Adviser for certain costs related to the
distribution of the Fund shares, not to exceed 0.25% of average daily net
assets. For the period ended June 30, 1998, the Fund incurred no such expenses
under the Plan.
<TABLE> <S> <C>
<ARTICLE> 6
<SERIES>
<NUMBER> 1
<NAME> LAKE SHORE FAMILY OF FUNDS - EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<INVESTMENTS-AT-COST> 225,851
<INVESTMENTS-AT-VALUE> 228,207
<RECEIVABLES> 2,343
<ASSETS-OTHER> 20,444
<OTHER-ITEMS-ASSETS> 5,560
<TOTAL-ASSETS> 256,554
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 710
<TOTAL-LIABILITIES> 710
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 253,478
<SHARES-COMMON-STOCK> 25,235
<SHARES-COMMON-PRIOR> 9,900
<ACCUMULATED-NII-CURRENT> 8
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 2
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,356
<NET-ASSETS> 255,844
<DIVIDEND-INCOME> 2,671
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,208
<NET-INVESTMENT-INCOME> 1,463
<REALIZED-GAINS-CURRENT> 2
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<NAME> LAKE SHORE FAMILY OF FUNDS - BALANCED FUND
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