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ARMADA FUNDS
1998 SEMI-ANNUAL REPORT
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Financial Power Close at Hand
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Armada Funds
Semi-Annual Report -- November 30, 1998
(Unaudited)
Armada International Equity Fund
Armada Small Cap Growth Fund
Armada Small Cap Value Fund
Armada Equity Growth Fund
Armada Tax Managed Equity Fund
Armada Core Equity Fund
Armada Equity Index Fund
Armada Equity Income Fund
Armada Balanced Allocation Fund
Armada Total Return
Advantage Fund
Armada Bond Fund
Armada Intermediate Bond Fund
Armada GNMA Fund
Armada Enhanced Income Fund
Armada Ohio Tax Exempt Fund
Armada Pennsylvania Municipal Fund
Armada National Tax Exempt Fund
Armada Money Market Fund
Armada Government
Money Market Fund
Armada Treasury Money
Market Fund
Armada Ohio Municipal
Money Market Fund
Armada Pennsylvania Tax
Exempt Money Market Fund
Armada Tax Exempt
Money Market Fund
Table of Contents
Chairman's Message ....................................................... 1
Fund Overviews ........................................................... 3
Statement of Net Assets and Financial Highlights ......................... 24
Financial Statements
Statement of Operations ............................................... 132
Statement of Changes in Net Assets .................................... 136
Notes to Financial Statements ............................................ 144
Results of Proxy Voting .................................................. 157
[BOUNDING BOX]
[BOXED LINE]
Not FDIC Insured Not Bank Guaranteed May Lose Value
An investment in money market funds is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other government agency.
Although the fund(s) seeks to preserve the value of your investment at $1.00
per share, it is possible to lose money by investing in the fund(s).
National City Investment Management Company serves as investment adviser to
Armada Funds for which it receives an investment advisory fee. For more
complete information about Armada Funds, including charges and expenses,
please contact your investment specialist or call 1-800-622-FUND (3863) for a
prospectus. Read it carefully before you invest or send money. Armada Funds
are distributed by SEI Investments Distribution Co. (SIDC), Oaks, PA 19456.
SIDC is not affiliated with National City Bank and is not a bank.
[END OF BOUNDING BOX]
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Chairman's Message
Dear Shareholders:
Over the course of the last six months investors experienced a true adventure
on Wall Street which served as a great test for individual risk tolerances. In
spite of the challenge this presented, we are pleased to report that during the
period ended November 30, 1998, the Armada Funds assets increased 33% from $7.4
billion to $11 billion. Our asset growth can be attributed to new investments,
market appreciation and conversions of pooled trust funds.
During this period, the fixed income and equity markets experienced extreme
levels of volatility. Despite this fact, the majority of our equity funds
outperformed their industry benchmarks while the fixed income funds held steady.
The key to this success has been the experience of our investment portfolio
management teams.
Diversification is critical
Armada Funds offers shareholders 23 different choices to achieve a well
diversified portfolio. Our experienced managers understand the financial markets
and the potential impact on their investment styles. While investment decisions
are always challenging and never guaranteed, the benefits of such experience are
most apparent during periods of volatility.
In an effort to further aid you with your investment strategies, this report
also includes information addressing the market and alternative investment
ideas. It also highlights our new Tax Managed Equity, Balanced Allocation and
Equity Index funds, emphasizing the benefits of these funds. In addition to the
new funds just mentioned, we also introduced the Armada Ohio Municipal Money
Market Fund for investors seeking current income exempt from federal and Ohio
state income tax.
New and improved format
Traditionally, Armada Funds financial reports have been divided into four
series -- equity, income, tax exempt and money market. The format has been
redesigned to include all of our funds in one report. This approach will
hopefully provide you with the "big picture" on the performance of the entire
family of funds, as well as information on how to diversify your own portfolio
of Armada investments.
Website launch February 1999
Armada Funds recognizes that as investors continue to investigate a variety
of resources to aid them in attaining their financial goals, the need for
accurate and timely information will be even more critical. We are pleased to
announce that in February 1999 you will be able to log onto our website at
www.armadafunds.com.
The site will include basic fund information such as NAVs, hypotheticals,
yields and distributions on a daily basis. You will also find detailed
performance comparisons, prospectuses, manager biographies, fund applications
and more. More detailed information regarding the new website will be provided
in the coming months.
Best wishes for a happy, healthy and prosperous 1999, and thank you for your
continued investment in Armada Funds. As always, if you have any questions or
require any assistance, please call us at 1-888-ARMADA5.
Sincerely,
\s\ [signature]
Robert D. Neary
Chairman
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1
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Armada Equity Outlook
Equity Market Overview
Very simply, the equity markets were more turbulent than they have been in
decades in the six months ended November 30, 1998. As the period opened,
aftershocks from the turmoil in Asia reached our shores. Signs that the economy
was slowing appeared -- while not dramatic declines, several significant
indicators posted only moderate gains which, after years of strong and stable
growth, disconcerted investors. Anxiety mounted. Then, in August, evidence that
the Russian economy was in far worse shape than previously suspected sent it
soaring. While the fate of Russia has, in fact, only minimal impact on the
global economy, its psychological impact was far-reaching. Coupled with signs of
continuing weakness in Asia and instability in Latin America, the mixture proved
to be a potent one. Moreover, as the value of their highly leveraged
multi-billion dollar positions deteriorated, several high-profile hedge funds
threatened to implode. Liquidity vanished. Markets worldwide dropped
significantly -- and no region was spared. In markets abroad and here at home,
virtually all stocks suffered to some degree.
A Virtual Correction?
Many of the situations that triggered the decline had eased somewhat by late
September. In Southeast Asia, governments were making progress towards
structural, economic reforms. In an effort to pull its economy out of the
doldrums, the Japanese were moving toward real banking reform. In Latin America,
the Brazilians were moving towards an austerity budget with the help of IMF, to
be funded by the United States. At home, citing a desire to cushion U.S.
economic growth against weakness in foreign economies and its recognition that
financial conditions had become less accommodating to growth domestically, the
Federal Reserve made the first of what were three cuts in short-term interest
rates over the course of next two months.
With these indications that problems were being addressed, confidence began
returning. Liquidity began to trickle back into the marketplace. Moreover, as
the environment eased, investors noticed signs of the U.S. economy's underlying
strength and impressive resilience. The rate of real growth in the second
quarter -- despite a reduction in inventories and a large decrease in net
exports -- was 1.8%. The rate of growth in the third was 3.9%. "Real final
sales" (GDP less inventories) were no longer increasing at the phenomenal pace
seen in the past, but they were still advancing. Business investment was also
increasing, just not at the torrid pace of the past year. In short, our economy
was still growing. Globally, progress was being made.
A Virtual Recovery?
Seeing this, market sentiment shifted back. By October, the market was in
recovery and its move was a powerful one. This time, too, the advance was not as
narrow as it had been earlier in the year. Smaller and mid-capitalization issues
received some long-overdue attention. Clearly, for the moment at least,
investors seem willing to look beyond whatever problems remain unresolved at
home or abroad.
We, too, are optimistic about the market's prospects in the long-term. In the
short-term, however, there is reason for caution. While the problems that caused
such great concern in the summer are being addressed and have been reduced in
severity, none have been resolved. Abroad, Russian, Brazilian and Japanese
economies are still weak. Singapore recently reported a large decline in its
GDP. At home, we see a deceleration in the growth of our economy. While a
deceleration is very different than a decline, corporate profits are expected to
drop off in the coming year.
A Realistic Approach
Against this backdrop, the correction in the period past was not all that
surprising. The sheer strength and speed of the recovery, however, has been.
Long-term, it is true that the low interest rate, low inflation, stable growth
environment should be very favorable for equities. But, in the short-term, while
the news and the environment have improved significantly, we are not out of the
woods yet -- and the market may be volatile as we work our way out. Much depends
on the willingness of governments abroad to carry out promised reforms. Very
simply, investors worldwide will be watching the speed and depth of the
follow-through very closely.
2
<PAGE>
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Armada International Equity Fund Overview
Comments from the International Equity Team
Recent Performance
Collapsing economic activity in Asia, decelerating growth in Europe, Russia's
debt default, and weakening Latin American economies threw the global markets
into turmoil during the summer. Liquidity evaporated and prices plummeted. No
region was spared. The situation had improved somewhat by early fall as steps
were taken towards reform in markets overseas and interest rates were lowered in
the U.S. As the period drew to a close, several markets, Southeast Asia among
them, were making strong comebacks. Gains, however, did not offset the damage
done earlier. For the six months ended November 30, 1998, the EAFE Index posted
a return of 0.34%. More heavily-weighted in Europe, the Fund generated a return
of -2.58% (after expenses) for institutional investors (-2.59% for retail class
A investors) over the same period.
Fund Strategy
Due to the turbulence of the environment, it was often difficult to make
changes or put new ideas to work. Nor was it always desirable. When Asian
markets rallied in the fall, the securities that outperformed were of very poor
credit quality. Consequently, because we were underweighted in Asia throughout
much of the period, the Fund fell short of the benchmark. Nonetheless, we feel
caution was warranted. Very simply, the short-term gains did not justify
assuming the risks entailed.
Fund Structure
Given the environment, we expect to maintain the portfolio's defensive
posture, particularly with regard to earnings in the near-term. To this end,
we've shifted our focus to more stable growth companies in recent months. Such
companies should prove to be more resilient than others in the slower growth,
lower interest rate environment we see ahead. As of November 30, 1998,
approximately 73% of the portfolio's assets were invested in Continental Europe
and the U.K., 20.7% in the Pacific Rim. The remainder was invested in smaller
markets around the world.
Looking Ahead
Looking ahead, we are cautiously optimistic. Given the Japanese government's
recent actions, we expect conditions to improve and may increase our exposures
here soon. In Europe, the recent trend towards consolidation continues. More
efficiency can only bode well over the long-term for investors and, given its
long-term focus, the Fund remains heavily-weighted in this region. In Southeast
Asia, the markets are recovering. The markets appear to have bottomed.
Certainly, in the long run, renewed economic growth will create opportunity. In
the short-term, due to quality considerations, the Fund may remain somewhat
underweighted in this region.
"Given the environment, we expect to maintain the portfolio's defensive posture,
particularly with regard to earnings in the near-term."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Annualized Cumulative
6 Month 1 Year/2 Since Inception/2 Since Inception/2
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares/1 (2.58)% 14.92% 4.44% 5.95%
- -----------------------------------------------------------------------------------------------------------------
Class A Shares (2.59)% 14.40% 4.09% 5.48%
Class A Shares, with Load/3 (7.95)% 8.07% (0.23)% (0.30)%
- -----------------------------------------------------------------------------------------------------------------
Synthetic Class B Shares (2.86)% 14.18% 14.70% 13.12%
Synthetic Class B Shares, with Load/4 (7.72)% 9.18% 9.07% 8.12%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada International Equity Fund's date of inception was August 1,
1997, for both Class I and Class A Shares and January 6, 1998, for Class B
Shares. The one year returns of the Class B shares includes information
from commencement of operations of the Class A shares, rather than the date
Class B shares were introduced.
<PAGE>
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
3
<PAGE>
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Armada Small Cap Growth Fund Overview
Comments from the Equity Growth Team
Recent Performance
Regardless of fundamentals or potential and across all sectors, investors
sold small cap stocks indiscriminately as they fled to quality during the summer
months. Then, in early October, as it became clear that smaller cap companies
had little exposure to currency problems overseas and international markets,
sentiment shifted dramatically. Small caps rallied -- and many which had
experienced the sharpest declines earlier saw the biggest increases. But despite
substantial gains, as the period drew to a close, there was still a way to go
before all the ground lost earlier was regained. For the six months ended
November 30, 1998, the Fund posted a return of -10.26% for institutional
investors (-10.45% for retail class A investors) versus a return of -12.35% for
the Russell 2000 for the same period.
Fund Strategy
The Fund's outperformance throughout this stormy period was due primarily to
its focus on larger small cap companies outside the technology and healthcare
sectors. While the vast majority of small cap issues saw significant declines in
August and September, these stocks were not as badly battered. Moreover, when
indications that sentiment was growing positive again appeared, we grew more
aggressive, albeit still cautious. Several lesser known, but faster growing
companies were added to the portfolio. As a result, the Fund was very
well-positioned for the market's rebound in October and November.
Fund Structure
In recent weeks, we have continued to add smaller names to the portfolio --
all companies with solid potential selling at extremely attractive valuations.
Several have moved up smartly with the market's rally. Among them are Wackenhutt
Corrections, American Bank Note Holographics, Macrovision and Jones Medical. At
the period's end, the Fund had holdings in 92 companies.
Looking ahead
Despite the recent rally, as the period drew to a close, some 40% of small
cap stocks still had yet to regain their '96 highs. Nonetheless, we believe that
sentiment has shifted -- and with small cap valuations relative to larger cap
stocks so attractive, the trend may grow stronger in the months ahead. In short,
the worst may now be behind us. As a result, in the weeks ahead, we may move
even more aggressively to seek out and capitalize on opportunities among the
hardest hit sectors like technology and healthcare. Given current valuations,
short-term and long-term prospects for such stocks are very bright indeed.
"The Fund's outperformance throughout this stormy period was
due primarily to its focus on larger small cap companies outside
the technology and healthcare sectors."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Annualized Cumulative
6 Month 1 Year/2 Since Inception/2 Since Inception/2
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares/1 (10.26)% 0.58% 3.96% 5.31%
- ----------------------------------------------------------------------------------------------------------------
Class A Shares (10.45)% 0.23% 3.69% 4.94%
Class A Shares, with Load/3 (15.37)% (5.29)% (0.61)% (0.81)%
- ----------------------------------------------------------------------------------------------------------------
Class B Shares (10.81)% (0.34)% (2.51)% (2.26)%
Class B Shares, with Load/4 (15.27)% (5.34)% (7.92)% (7.14)%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Small Cap Growth Fund's date of inception was August 1, 1997,
for both Class I and Class A Shares and January 6, 1998, for Class B
Shares. The one year returns of the Class B Shares includes information
from commencement of operations of the Class A Shares, rather than the date
Class B Shares were introduced.
<PAGE>
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
4
<PAGE>
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Armada Small Cap Value Fund Overview
Comments from the Broad Street Asset Management Team
Recent Performance
Amid turmoil overseas in Asia and Russia, and shifting global economic and
financial prospects, the market was highly-volatile during the six months ended
November 30, 1998. In mid-summer, these troubles at home and abroad -- both real
and imagined -- triggered a wave of selling in the equities market as investors
ran for cover. Small cap stocks, regardless of fundamental strength or
potential, were simply trampled in the stampede to safety and liquidity.
When investors' worst fears failed to materialize, the market calmed and in
October, small caps rebounded nicely. Given the ground lost earlier, however,
the sector had not recovered entirely by the period's end. As a result, for the
six months ended November 30, 1998, the Fund posted a total return of -11.04%
for institutional investors (-11.60% for retail class A investors), compared to
- -12.9% for the Russell 2000 Small Cap Index.
Fund Strategy
Throughout the period, the Fund was heavily-weighted in financial services,
basic industry and consumer cyclical stocks. While declines in technology
garnered the most attention, all small cap sectors suffered to a greater or
lesser degree in August and September. Even the long-established, strongest
small cap companies were dogged by concerns about their ability to meet earnings
expectations. Consequently, few changes were made in the Fund's allocation over
the course of the period with the exception that we built our technology
weighting up to about 20% of assets in reaction to prices even a seasoned value
investor could not resist. And, due primarily to their fundamental strength, the
vast majority of them participated in the market's rebound in October and
November.
Fund Structure
At the end of the period, the Fund was over-weighted in the technology, basic
product, consumer cyclical and financial services sectors. Moreover, true to its
fundamental value orientation and investment philosophy, the Fund's assets
remain invested in companies within these sectors with price/book and
price/earnings ratios significantly below the industry averages.
Looking ahead
Very simply, we're optimistic about the prospects for small cap stocks in
general and the Fund's holdings in particular in the months ahead. Valuations
being placed on smaller companies stocks are as attractive today as they have
ever been relative to large cap companies. In addition, with nearly 20% of
assets in an assortment of financial stocks, the Fund should benefit in the
declining rate environment.
Moreover, lower rates should also act as a stimulus for basic product and
technology stocks. The Fund carries a significant weighting in each sector. As
always, however, our success as a Fund will hinge on our ability to carefully
choose securities -- one by one -- which meet our underlying fundamental,
value-oriented approach.
"Valuations being placed on smaller companies stocks are as attractive
today as they have ever been relative to large cap companies."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Annualized Annualized Cumulative
6 Month 1 Year/2 3 Year/3 Since Inception/2 Since Inception/2
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 (11.04)% (10.19)% 14.50% 15.23% 85.22%
- -----------------------------------------------------------------------------------------------------------------------
Class A Shares (11.60)% (10.92)% 14.01% 14.30% 77.51%
Class A Shares, with Load/3 (16.46)% (15.81)% 11.89% 12.81% 67.78%
- -----------------------------------------------------------------------------------------------------------------------
Class B Shares (11.93)% (11.54)% 13.74% (12.30)% (11.13)%
Class B Shares, with Load/4 (16.34)% (15.85)% 12.70% (17.17)% (15.57)%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Small Cap Value Fund's date of inception was July 26, 1994, for
Class I Shares, August 15, 1994, for Class A Shares and January 6, 1998,
for Class B Shares. The one year and annualized 3-year returns of the Class
B Shares includes information from commencement of operations of the Class
A Shares, rather than the date Class B Shares were introduced.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
5
<PAGE>
[GRAPHIC OMITTED]
Armada Equity Growth Fund Overview
Comments from the Equity Growth Team
Recent Performance
Events in markets abroad and uncertainty about the direction of our own
economy rattled investors during the six months ended November 30, 1998. In
August, triggered by the threatened collapse of the Russian economy, stocks
dropped dramatically. Then, in the fall, when the worst failed to materialize
and with several cuts in short-term interest rates, enthusiasm for equities was
reborn.
As a result, by the period's end, many stocks had recovered and were moving
higher. Consequently, despite all the sound and fury, the period was ultimately
a positive one. For the six months ended November 30, 1998, the portfolio
generated a total return of 8.38% for institutional investors (8.24% for retail
Class A investors), versus its benchmark, the S&P 500 BARRA Growth Index, which
posted a total return of 14.99% over the same period.
Fund Strategy
In an effort to minimize volatility, the Fund was widely diversified. This
cautious approach served the Fund well as the market declined. But when stocks
recovered, the advance was not as narrow as earlier in the year. But, again, the
most impressive gains were experienced by the biggest names, particularly the
biggest names on the NASDAQ. While the Fund held positions in many of these
stocks, none of these positions were sizable. As a result, the Fund fell
slightly short of its benchmark. Nevertheless, given the environment, we feel
our cautious approach to the marketplace during the period was well-warranted.
Fund Structure
As anxieties diminished in the fall and the market grew somewhat less
volatile, we began to narrow the Fund's focus. Many smaller holdings were
eliminated in favor of creating more sizable positions in others. As a result,
at the period's end, the portfolio held 102 names, down from 120 earlier on.
Moreover, in recent weeks, we have also begun to trim positions in stocks that
may be affected by the slowing of our economy, such as the GAP, Home Depot and
Lowes.
Looking Ahead
While sentiment is now more positive, the environment ahead may continue to
be somewhat choppy. The rate of the economy's growth is decelerating. Earnings
expectations have been lowered but, after several years of simply astonishing
growth, investors may simply be unprepared for a drop-off. Meeting expectations
alone may not be enough in some cases -- misses and near-misses by big or
well-known names are likely to be treated very harshly and trigger volatility in
the marketplace. As a result, we are optimistic, but somewhat cautious. In the
months ahead, we will continue to take a highly-disciplined, earnings growth
approach to selecting securities for investment.
"While sentiment is now more positive, the environment ahead may continue
to be somewhat choppy . . . we will continue to take a highly disciplined,
earnings growth approach to selecting securities for investment."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Annualized Since Since
6 Month 1 Year/2 3 Year/2 5 Year/2 Inception/2 Inception/2
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class I Shares/1 8.38% 19.78% 25.86% 20.43% 16.01% 277.48%
- --------------------------------------------------------------------------------------------------------------------
Class A Shares 8.24% 19.45% 25.56% 20.14% 15.30% 196.22%
Class A Shares, with Load/3 2.30% 12.90% 23.21% 18.79% 14.45% 179.96%
- --------------------------------------------------------------------------------------------------------------------
Class B Shares 8.04% 18.83% 25.34% 20.01% 20.52% 18.26%
Class B Shares, with Load/4 3.04% 14.35% 24.49% 19.81% 14.86% 13.26%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Equity Growth Fund's date of inception was December 20, 1989,
for Class I Shares, April 15, 1991, for Class A Shares and January 6, 1998,
for Class B Shares. The one year, annualized 3-year and annualized 5-year
returns of the Class B shares include information from commencement of
operations of the Class I Shares, rather than the date Class B Shares were
introduced.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
6
<PAGE>
[GRAPHIC OMITTED]
Armada Tax Managed Equity Fund Overview
Comments from the Equity Growth Team
Recent Performance
Size made all the difference as the market gyrated during the six months
ended November 30, 1998. As Asian currencies continued to weaken and the Russian
economy threatened to collapse, many investors fled the marketplace. Those that
stayed turned to bigger names for safety and liquidity. As a result, while
virtually all stocks saw declines in August and September, large cap stocks lost
less ground than others. Moreover, as the market rebounded in October and
November, they bounced back strongly -- and by the period's end, several were
flirting with new highs.
As a result, for the six months ended November 30, 1998, we're pleased to
report that the Fund posted a total return of 12.92% for institutional investors
(13.18% for retail class A investors), ahead of its benchmark, the S&P 500,
which returned 7.50% over the same period.
Fund Strategy
The Fund's strong performance was due primarily to its focus on larger cap
issues, and its heavy weighting in the healthcare sector. Recovering quickly
from the tumult in August, these issues chugged steadily upward throughout the
fall. Holdings in Schering Plough, Abbot Labs and Merck made a substantial
contribution to performance. While the decline and subsequent comeback of tech
stocks was far more dramatic, Intel also posted a large gain. Microsoft and
Lucent Technology, in the same sector, were strong performers as well.
Fund Structure
Despite the volatility of the environment, we did not deviate from the Fund's
objective. Throughout the period, the Fund's assets remained invested in strong
companies with the expectation of holding them for several years. To minimize
tax consequences, turnover, as always, was extremely low. As of November 30,
1998, the top five holdings in the Fund's portfolio were: Schering Plough
Corporation; Pfizer Incorporated; Abbott Laboratories; Home Depot, Inc.; and
American International Group, Inc.
Looking ahead
Going forward, the market may continue to be volatile. While sentiment has
once again turned positive, problems do remain both at home and abroad. At the
moment, investors seem to be willing to look beyond them. But the U.S. economy
is slowing. In Asia, governments are moving towards reform, but the process is a
slow one. With profits dependent upon activities both domestically and globally,
larger corporations may face pressure in both arenas in the year ahead.
Expectations have been lowered of late, but those that disappoint may be treated
even more harshly than in the recent past -- and this could trigger more
volatility. Looking past these short-term concerns, however, the long-term
prospects for the portfolio's holdings remains very bright.
"The Fund's strong performance was due primarily to its focus on larger cap
issues, and its heavy weighting in the healthcare sector."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Annualized Annualized Since Since
6 Month 1 Year/2 3 Year/2 5 Year/2 10 Year/2 Inception/2 Inception/2
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class I Shares/1 12.92% 30.21% 29.63% 22.72% 17.72% 19.46% 12.13%
- ------------------------------------------------------------------------------------------------------------------------------
Class A Shares 13.18% 30.52% 29.73% 22.77% 17.75% 21.61% 11.49%
Class A Shares, with Load/3 6.93% 23.38% 27.32% 21.37% 17.09% 9.79% 5.33%
- ------------------------------------------------------------------------------------------------------------------------------
Class B Shares 12.92% 30.22% 29.63% 22.72% 17.72% 17.50% 9.72%
Class B Shares, with Load/4 7.92% 25.22% 28.83% 22.54% 17.72% 8.35% 4.72%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Tax Managed Equity Fund's date of inception was April 9, 1998,
for Class I Shares, May,11 1998 for Class A Shares and May 4, 1998, for
Class B Shares. The one year, annualized 3-year, annualized 5-year and
annualized 10-year returns of Class I, Class A and Class B Shares includes
performance of a predecessor common trust fund which commenced operations
on June 30, 1984.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
7
<PAGE>
[GRAPHIC OMITTED]
Armada Core Equity Fund Overview
Comments from the National Asset Management Team
Recent Performance
Unsettled by events in Asia and Russia and uneasy about prospects for the
U.S. economy, investors were very skittish during the six months ended November
30, 1998. Uncertainty reached its breaking point in August and sentiment in the
marketplace shifted dramatically. Across all sectors, regardless of fundamental
strength, stocks declined.
Then, in early fall, actions by the Fed to ease interest rates, by the
Japanese to reform their economy and by the International Monetary Fund (IMF) to
help ease the situation in Latin America, calmed investors' fears. Market
sentiment shifted once again and equities rebounded strongly. As a result,
despite the volatility of the period, the Fund posted a total return of 11.94%
for institutional investors and 11.82% for retail class A investors for the six
months ended November 30, 1998.
Fund Strategy
Throughout much of the period, the Fund was heavily-weighted in technology
stocks. These stocks were particularly hard hit in the August sell-off. Yet,
when the market bounced back, larger, better-known technology stocks led the way
- -- and ultimately, moved higher over the course of the period. Consequently, our
exposures in the tech sectors made a substantial contribution to performance.
Among the stand-out performers were Cisco Systems, IBM and Altera which posted
gains over 40%. Exposures in the financial sector, the portfolio's second
heaviest weighting, also did extremely well. As a result, in the very
challenging environment of the period, we're pleased to report that the Fund
outperformed its peers.
Fund Structure
Going forward, the Fund remains over-weighted in technol ogy stocks which we
believe offer investors very strong growth potential. The Fund's portfolio is
also heavily-weighted in the financial, pharmaceutical, and consumer staples
sectors. In addition, in recent weeks, we capitalized on many of the
opportunities the downturn in the market left in its wake. Positions in Eli
Lilly, Safeway, CVS Corp. and Guidant Corp. -- all high quality, large
capitalization growth stocks -- have been increased or added to our portfolio.
Looking ahead
Clearly, as the dust has settled and fears have eased, market sentiment has
again grown positive. In fact, the move upward in recent weeks has been very
powerful. At the same time, however, the earnings growth of U.S. corporations is
slowing -- and the months ahead could be choppy ones as investors digest this.
As it did this last summer, the Fund's focus on high quality companies with
stable earnings should enable it to weather any such squalls well. Consequently,
while we are optimistic about the Fund's prospects, we are cautious. Track
records of all companies considered for investment will be scrutinized very,
very closely.
". . . exposures in the tech sectors made a substantial contribution to
performance. Among the stand-out performers were Cisco Systems,
IBM and Altera which posted gains over 40%."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Annualized Cumulative
6 Month 1 Year/2 Since Inception/2 Since Inception/2
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class I Shares/1 11.94% 27.25% 20.12% 27.65%
- ----------------------------------------------------------------------------------------------------------------
Class A Shares 11.82% 26.90% 19.88% 27.30%
Class A Shares, with Load/3 5.67% 19.95% 14.91% 20.32%
- ----------------------------------------------------------------------------------------------------------------
Class B Shares 11.65% 26.49% 26.38% 23.41%
Class B Shares, with Load/4 6.65% 21.49% 20.69% 18.41%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Core Equity Fund's date of inception was August 1, 1997, for
both Class I and Class A Shares and January 6, 1998 for Class B Shares. The
one year returns of the Class B Shares includes information from
commencement of operations of the Class A Shares, rather than the date
Class B Shares were introduced.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
8
<PAGE>
[GRAPHIC OMITTED]
Armada Equity Index Fund Overview
Comments from the Equity Team
Fund Objective and Structure
The Fund opened on July 10, 1998, with approximately $120 million in net
assets under management, the Fund seeks to provide investment results that
mirror the price and yield performance of publicly-traded common stocks as
represented by the S&P 500 Composite Index. To this end, assets are invested in
the portfolio of stocks replicating the S&P 500 Index as closely as possible.
The weighting of each stock in the blend is based on its relative market value
within the index.
Recent Performance
Prior to inception, the Fund was in operation and known as the National City
Bank Retirement Index Fund. During the four months between its opening and
November 30, 1998, it produced a total return of 1.28% (cumulative to date) for
institutional investors and 11.11% for retail class A investors (cumulative to
date), versus its benchmark, the S&P 500 which produced a total return of 0.50%
over the same period.
Fund Strategy
Shaky Asian markets, turmoil in Russia and uncertainty about the future
direction of our own economy wreaked havoc in markets globally in August and
September. Domestically, equities across all sectors experienced significant
declines. Designed to reflect the performance of the market overall, the value
of the Fund's holdings dropped as well. In October, however, sentiment shifted,
and over the next month and half, the market steadily regained the ground lost
earlier. In fact, at the end of the period, averages were very close to the
market's highs in July.
Looking ahead
Market psychology has improved dramatically in the last several weeks with
the Fed's action to lower interest rates, Japan's efforts to initiate reforms
and the U.S.'s agreement to provide the IMF with funding to help Brazil. As a
result, equities are again trending upward and the move is again very powerful.
In the months ahead, we expect to see our economy slow and corporate profits to
drop off. But, given the sheer strength of sentiment, a friendly Fed, and no
inflation, it now appears that investors may very well be inclined to look past
any short-term weaknesses. Consequently, while there certainly will be hiccups
along the way and caution is warranted, we are optimistic about the Fund's
prospects.
". . . the Fund seeks to provide investment results that mirror the price
and yield performance of publicly-traded common stocks as represented
by the S&P 500 Composite Index."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
- --------------------------------------------------------------------------------
Cumulative Since Inception/2
- --------------------------------------------------------------------------------
Class I Shares/1 1.28%
- --------------------------------------------------------------------------------
Class A Shares 11.11%
Class A Shares, with Load/3 4.99%
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Equity Index Fund's date of inception was July 10, 1988, for
Class I Shares and October 15, 1998 for Class A Shares.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 3.75%.
9
<PAGE>
[GRAPHIC OMITTED]
Armada Equity Income Fund Overview
Comments from the Equity Value Team
Recent Performance
Like other funds of this kind, our portfolio was heavily-weighted in
dividend-paying stocks throughout the six months ended November 30, 1998.
Historically, these stocks have been relatively less volatile than others in
times of market turbulence, and that was the case this time as well. In the
rough and tumble environment of August and September, valuations of these
corrected, but to a far lesser degree than many others. Then, as the market
recovered in the fall, they chugged back steadily.
Moreover, positions added earlier in the year in "medium-large" cap issues
(those smaller than the very largest of "mega"-cap stocks) performed well when
interest grew in small and mid-cap issues in October and November. As a result,
over the six months period, the Fund produced a total return of .46%, for
institutional investors (0.13% for retail class A investors), versus its
benchmark, the S&P 500/BARRA Value which produced a return of -.45% over the
same period.
Fund Strategy
Designed to protect assets in down drafts and provide a competitive total
rate return over a market cycle, the portfolio invests primarily in low-risk,
low-multiple, income-paying stocks. In order to avoid to the chief pitfall of
such a style of investing, the Fund monitors changes in investor sentiment in
order to distinguish between stocks poised to outperform and those likely to
languish. Very simply, what we are looking for is good value and good news.
Fund Structure
At the period's end, the Fund was positioned conservatively and widely
diversified with holdings in over 80 companies. In line with its emphasis on
higher yield, lower risk, lower price/book ratios, our portfolio was
overweighted in utility and consumer cyclical stocks and underweighted in
financial and technology stocks relative to the benchmark, the S&P BARRA Value
Index. Also, the average market capitalization of the Fund's holdings was
slightly less than the benchmark.
Looking ahead
We believe the marketplace may continue to be somewhat volatile in the months
ahead. Despite the decline in August, the valuations of larger cap growth stocks
are again returning to all-time highs. As a result, while we are optimistic, we
are somewhat cautious. In the months ahead, we continue to work to seek out and
capitalize on those stocks that are statistically cheap, currently undervalued
in terms of their future growth prospects as well as exhibiting improvements in
investor sentiment.
"Historically, dividend-paying stocks have been relatively less
volatile than others in times of market turbulence, and that was
the case this time as well."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Annualized Annualized Cumulative
6 Month 1 Year/2 3 Year/2 Since Inception/2 Since Inception/2
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 0.46% 11.09% 19.64% 18.68% 113.04%
- ------------------------------------------------------------------------------------------------------------------------
Class A Shares 0.13% 10.60% 19.25% 18.31% 105.14%
Class A Shares, with Load/3 (5.38)% 4.54% 17.04% 16.75% 93.81%
- ------------------------------------------------------------------------------------------------------------------------
Class B Shares (0.39)% 10.17% 19.10% 10.02% 8.96%
Class B Shares, with Load/4 (5.36)% 5.36% 18.15% 4.42% 3.96%
</TABLE>
[END OF BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of NAM. Certain
account level charges may apply.
2 The Armada Equity Income Fund's date of inception was July 1, 1994, for
Class I Shares, August 22, 1994, for Class A Shares and January 6, 1998,
for Class B Shares. The one year and annualized 3-year returns of the Class
B Shares includes information from commencement of operations of the Class
A Shares, rather than the date Class B Shares were introduced.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 5.50%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
10
<PAGE>
[GRAPHIC OMITTED]
Armada Balanced Outlook
Balanced Allocation Overview
Financial Market Overview
In short, over the course of the six months ended November 30, 1998, the
financial markets were more turbulent than they have been in decades. As the
period opened, aftershocks from the turmoil in Asia reached our shores. At home,
signs that our economy's growth was moderating appeared. After years of strong
and stable growth, investors were unnerved. Anxiety mounted. Then, in August,
the Russian economy began to teeter on the edge of collapse. Coupled with
continuing weakness in Asia, instability in Latin America and the potential
implosion of several highly leveraged hedge funds, was a potent combination.
Investors ran for cover. Liquidity vanished. Markets worldwide dropped
significantly--and no region was spared. Perceived to be the safest of safe
havens, U.S. Treasury securities surged. In markets abroad and here at home,
virtually all other fixed income and equity securities suffered to some degree.
In early fall, however, with indications that problems abroad were recognized
and being addressed, confidence began returning. In addition, citing a desire to
cushion U.S. economic growth against weakness in foreign economies and its
recognition that financial conditions had become less accommodating to growth
domestically, the Federal Reserve made the first of three cuts on short-term
interest rates over the course of next two months. As a result, liquidity began
to trickle back into the marketplace. By October, stocks were recovering and the
move upward was a powerful one. While the environment also improved in the fixed
income markets, investors were more wary and the rebound was slower. Sentiment
still favored high quality, intermediate-term securities. Nonetheless, in the
closing weeks of the period, several large corporate issues were brought to
market and were well-supported.
A Realistic Approach
Much of the optimism the recovery indicates is justified. Historically, the
type of low interest rate, low inflation, stable growth environment we see ahead
has proved to be very favorable for the financial markets. In the short-term,
however, there is reason for caution. The problems that caused such great
concern in the summer are being addressed and have been reduced in severity, but
none have been resolved. Abroad, Russian, Brazilian and Japanese economies are
still weak. Singapore recently reported a large decline in its GDP. At home, we
see a deceleration in the growth of our economy. While a deceleration is very
different that a decline, corporate profits are expected to drop off in the
coming year.
Against this backdrop, the sheer strength and speed of the recovery in the
equities market has been very surprising. Very simply, the news and the
environment have improved significantly, but we are not out of the woods
yet--and the markets may be volatile in the months ahead as we work our way out.
Much depends on the willingness of governments abroad to carry out promised
reforms. Very simply, investors worldwide will be watching the speed and depth
of the follow-through very closely.
11
<PAGE>
[GRAPHIC OMITTED]
Armada Balanced Allocation Fund Overview
Comments from the National City Investment Management Company
Recent Performance
Intended for long-term investors seeking capital appreciation, the Fund was
launched on July 10, 1998 with approximately $55 million in net assets under
management. Seeking to minimize volatility and maximize the potential for
growth, the Fund's assets will generally be moderately weighted in favor of
stocks. Given the market environment during the period, however, the Fund's
initial allocation to equities was light, approximately 51%, and fixed income
exposures were heightened at 45%. As a result, despite one of the most volatile
markets in recent memory, we're pleased to report that the Fund held its own
during its first four months in operation. Since inception, it has produced a
total return of 1.33% (cumulative to date) for institutional investors and 4.00%
(cumulative to date) for retail class A investors.
Fund Strategy
A light allocation to equities buffered the portfolio as investors left the
stock market en masse in August seeking quality and liquidity. Many of them were
found in high quality, fixed income securities -- and the Fund's heightened
exposures here performed well. In addition, with its equity allocation focused
primarily on large capitalization issues, the Fund benefited as this sector once
again led the market's rebound in October. So, while it is far too early to make
any definitive judgments regarding the Fund's long-term potential, we are
pleased with its initial results.
Fund Structure
While optimistic about prospects for the financial markets in the months
ahead, we expect the markets will continue to be somewhat volatile. As a result,
as of November 30, 1998, exposures in the stocks were at the low end of the
Fund's allocation range at 50%. Approximately 45% of our assets were invested in
fixed income securities. The remainder of the portfolio was held in cash and
cash equivalents.
Looking Ahead
Clearly, our economy is slowing and corporate profits will drop in the coming
year -- due to slowing demand at home and abroad. Looking overseas, it is also
evident that while the turmoil may have subsided, many economies in Asia and
elsewhere have a good deal of work yet to do. At the same time, however, central
bankers worldwide are now on watch -- and there is very real reason to believe
that progress will be made. This, coupled with lower interest rates, should help
stabilize the global situation and lead bonds to resume their rally. With regard
to equities, however, while we are optimistic for their long-term prospects, we
do believe caution is warranted in the short run.
" . . .while it is far too early to make any definitive judgment
regarding the Fund's long-term potential, we are pleased with its
initial results."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
- --------------------------------------------------------------------------------
Cumulative Since Inception/2
- --------------------------------------------------------------------------------
Class I Shares/1 1.33%
- --------------------------------------------------------------------------------
Class A Shares 4.00%
Class A Shares, with Load/3 (0.98)%
- --------------------------------------------------------------------------------
Class B Shares 3.36%
Class B Shares, with Load/4 (1.64)%
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Balanced Allocation Fund's date of inception was July 10, 1998
for Class I Shares, July 31, 1998 for Class A Shares and November 11, 1998
for Class B Shares.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 4.75%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
12
<PAGE>
[GRAPHIC OMITTED]
Armada Fixed Income Outlook
Income Market Overview
In short, the six months ended November 30, 1998, were very challenging ones
for fixed income investors. As the period opened, aftershocks from events in
Asian markets reached our own -- and indications that our economy was slowing
began to materialize. While worries about inflation were non-existent, concern
about deflation increased. Anxiety in the marketplace, already high, mounted.
Then, in August, evidence that the Russian economy was on the verge of
disintegration sent anxiety skyrocketing. Investors ran for cover. In the days
that followed the collapse of Long Term Capital Management, a highly-leveraged,
multi-billion hedge fund, exacerbated the situation. Liquidity evaporated.
Looking for a safe haven, investors worldwide poured money into U.S. Treasury
securities, and fixed income sectors across the spectrum felt the effects.
Cooler Heads Prevail
Many of the situations that had convulsed the markets in August had eased
somewhat by late September. On reflection, many realized that while the Russia
situation was dire, its economy is, in fact, smaller than that of the
Netherlands. Its ups and downs have far more of a psychological impact on global
markets than a financial one. With regard to more tangible problems, the Asian
markets had calmed somewhat. The Japanese had begun to take steps, albeit baby
ones, towards real banking reform. The International Monetary Fund (IMF) was
working with the Brazilians to stabilize their economy. On the home front, a
group of investment banks, with the help of monetary authorities provided Long
Term Capital Management with the capital to unwind their positions. Also, in an
effort to provide liquidity and restore confidence, the Federal Reserve made the
first of what were three cuts in short-term interest rates over the course of
the next two months.
As a result, by the period's end, the environment had improved significantly.
In fact, in the closing weeks, several large corporate issues were brought to
market and were well-supported. Nonetheless, throughout the period as
uncertainty wreaked havoc, intermediate and short-term Treasury securities were
the only place to be. Moreover, the risks involved in all other types of fixed
income securities underwent a huge repricing. In fact, at one point during the
period past, spreads on emerging market debt and high yield securities widened
to levels not seen since the last recession.
Confidence Makes a Comeback
In recent weeks, the markets have been more liquid, due to the Federal
Reserve's efforts at home and constructive steps taken abroad. Consequently,
confidence is returning. But, sentiment still favors high quality,
intermediate-term securities -- and this may be the case over the near-term
while the environment clears. As a result, we expect to approach the marketplace
cautiously. At the same time, however, we are optimistic about the Funds'
prospects. Given the environment of the past several months, there is a good
deal of supply in the pipeline, particularly in the corporate arena. Many of
these securities, when issued, will present attractive opportunities for
investors. In addition, due to our belief that interest rates would fall, our
portfolios were positioned to benefit. Given the uncertainty, quality standards
were also strictly maintained throughout the year. As a result, we believe our
Funds are well-positioned for the declining rate environment and somewhat choppy
markets we see ahead.
13
<PAGE>
[GRAPHIC OMITTED]
Armada Total Return Advantage Fund Overview
Comments from the National Asset Management Team
Fund Performance
For the six months ended November 30, 1998, the Fund produced a total return
of 5.65% for institutional investors and 5.32% (before sales charges) for retail
class A investors. Over the same period, the industry benchmark, the Lehman
Government/Corporate Bond Index, posted a total return of 5.90%. As of the same
date, also, the Fund had SEC 30-day yields of 5.40% and 4.87% for institutional
and retail shares, respectively.
Fund Strategy
Investor concern over events in Asian markets, turmoil in Russia and a
possible slow-down in growth at home rose to a fever pitch in late summer.
Treasury securities quickly became the only game in town -- and all other fixed
income securities suffered as liquidity vanished. Consistent with our belief
that interest rates would continue to fall, the duration of the Fund's holdings
was longer than the industry average at the period's start. This positioning
helped. Holdings in the Treasury sector also performed extremely well. Moreover,
as the market stabilized in the period's closing months, non-government issues
strengthened. Nevertheless, because the portfolio was over-weighted in these
sectors in the most tumultuous weeks of the period, performance was affected.
Fund Structure
As of November 30, 1998 approximately 30.3% of the Fund's assets were
invested in U.S. Treasury and Agency securities, 7.9% in mortgage-backed
securities, 36.5% in corporate bonds, 19.7% in asset-backed securities with the
remainder invested in a range of government securities. As of the same date, the
average credit quality of the Fund's holdings was triple-A. The average maturity
of the portfolio's holdings was 12.13 years versus the industry benchmark of
10.41 years.
Looking Ahead
In an effort to restore liquidity and confidence, the Federal Reserve has cut
interest rates three times over the past several months. Key to any further
action, we believe, is the Fed's assessment of how non-U.S. markets fare over
the next several months. If, in the Fed's opinion, these threaten to stall or
fall, we could see further easing. Here, however, many of the governments in
Asia, including Japan, are making reforms. Clearly, these changes will not be
effective overnight, but they are signs that real progress is in the offing in
Asia. The situation in Latin America is also improving. As a result, we expect
the next few months to be good ones for non-government markets. With a longer
than average duration positioning and a heavier than average weighting in
non-government issues, the Fund should benefit as rates fall and confidence
returns to the marketplace.
"With a longer than average duration positioning and a heavier than average
weighting in non-government issues, the Fund should benefit as rates fall and
confidence returns to the marketplace."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Annualized Annualized Cumulative
6 Month 1 Year 3 Year Since Inception/2 Since Inception/2
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 5.65% 9.63% 7.37% 9.06% 46.46%
- ------------------------------------------------------------------------------------------------------------------
Class A Shares 5.32% 9.15% 7.04% 8.67% 42.18%
Class A Shares, with Load/3 0.32% 3.95% 5.30% 7.42% 35.39%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Total Return Advantage Fund's date of inception was July 7, 1994
for Class I Shares and September 6, 1994 for Class A Shares.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 4.75%.
14
<PAGE>
[GRAPHIC OMITTED]
Armada Bond Fund Overview
Comments from the Taxable Fixed Income Team
Fund Performance
For the six months ended November 30, 1998, the Fund produced a total return
of 5.17% for institutional investors and 5.05% (before sales charges) for retail
class A investors. Over the same period, the Fund's benchmark, the Lehman
Aggregate Index, posted a total return of 5.15%. As of the same date, also, the
Fund had SEC 30-day yields of 4.96% and 4.70% for institutional and retail
shares, respectively.
Fund Strategy
A duration longer than the Index and solid security selection enabled the
Fund to outperform industry averages in the volatile markets of the period. As
events unfolded and markets worldwide tumbled, investors sought shelter and
found it in Treasury securities. Heavily-weighted in Treasury securities in
August, the Fund was well-positioned to weather the storm. For additional
protection, Treasury exposure was increased as the markets grew more volatile.
Moreover, while corporate securities were weak, those in the intermediate range
of the curve where the Fund's holdings were concentrated, suffered the least. An
underweighting in mortgage-backed securities that were particularly hard hit,
also helped.
Fund Structure
As of November 30, 1998 approximately 33.8% of the Fund's assets were
invested in U.S. Treasury and Agency securities, 20.5% in mortgage-backed
securities, 23.4% in corporate bonds, 14.3% in asset-backed securities with the
remainder invested in a range of government securities. As of the same date, the
average maturity of the portfolio's holdings was 9.51 years; the average credit
quality, triple-A.
Looking Ahead
In recent weeks as confidence and liquidity have begun to reappear in the
marketplace, sectors beyond Treasuries are strengthening. As a result, should
the environment continue to firm, we may move to take advantage of some of the
attractive opportunities in non-government sectors that the recent turmoil
created. At the same time, however, we are somewhat wary. Domestically and
globally, several of the most worrisome situations improved significantly, but
problems can always resurface. Consequently, while we are optimistic about the
Fund's prospects in the months ahead, we continue to take a cautious and
conservative approach to the marketplace.
"A duration longer than the Index and solid security selection
enabled the Fund to outperform industry averages in the volatile
markets of the period."
[BOUNDING BOX]
<TABLE>
<CAPTION>
AGGREGATE TOTAL RETURN as of 11/30/98
- ---------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Since Since
6 Month 1 Year/2 3 Year/2 Inception/2 Inception/2
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 5.17% 9.10% 6.86% 7.64% 37.28%
- ---------------------------------------------------------------------------------------------------------------
Class A Shares 5.05% 8.84% 6.67% 8.57% 20.01%
Class A Shares, with Load/3 0.08% 3.65% 4.94% 6.20% 14.28%
- ---------------------------------------------------------------------------------------------------------------
Class B Shares 4.68% 8.54% 6.51% 6.99% 6.26%
Class B Shares, with Load/4 (0.32)% 3.54% 5.33% 1.40% 1.26%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Bond Fund's date of inception was August 10, 1994, for Class I
Shares, September 11, 1996, for Class A Shares and January 6, 1998, for
Class B Shares. The annualized 3-year returns of the Class A Shares and the
one year and annualized 3-year returns of the Class B Shares include
information from the commencement of operations of the Class I Shares,
rather than the date Class A or Class B Shares were introduced. The
performance of the Class A or Class B Shares prior to their introduction
date does not reflect shareholder servicing fees, which, if reflected,
would reduce the performance quoted for such periods.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 4.75%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
15
<PAGE>
[GRAPHIC OMITTED]
Armada Intermediate Bond Fund Overview
Comments from the Taxable Fixed Income Team
Fund Performance
For the six months ended November 30, 1998, the Fund produced a total return
of 4.74% for institutional investors and 4.51% (before sales charges) for retail
class A investors. Over the same period, the industry benchmark, the Lehman
Intermediate Government/Corporate Bond Index, posted a total return of 5.90%. As
of the same date, also, the Fund had SEC 30-day yields of 5.46% and 4.79% for
institutional and retail shares, respectively.
Fund Strategy
Given the declining interest rate environment and increased volatility in the
marketplace, the Fund entered the period underweighted in non-government issues
and overweighted in Treasury securities. In addition, because it appeared that
interest rates would continue trending downward, the average duration of our
portfolio was somewhat longer than that of the Index. As a result, the Fund was
well-positioned for the events of August and September. Of course, like
virtually all other fixed income securities, exposures in asset-backed and
non-government issues underperformed. The damage here, however, was minimized by
the exceptionally strong performance of the Fund's sizable exposure in
Treasuries.
Fund Structure
As of November 30, 1998, approximately 51.2% of the Fund's assets were
invested in asset-backed and mortgage-backed securities, 31.9% was held in
corporate bonds, and the remainder was held in cash or cash equivalents. As of
the same date, the average maturity of the portfolio's holdings was 6.06 years.
Looking Ahead
In recent weeks, as the environment both at home and abroad eased somewhat,
the marketplace became more liquid and somewhat more stable. Securities beyond
Treasuries have showed signs of firming. Moreover, in the wake of the turmoil,
very attractive opportunities appeared. Should the environment continue to
improve in the coming weeks, we may move to take advantage of some of these. At
the same time, however, we are wary -- uncertainty still looms over the global
markets and U.S. economic data is sending mixed signals on growth. Problems can
resurface. Consequently, while we are optimistic about the Fund's prospects in
the months ahead, we expect to maintain our conservative posture and approach
the markets cautiously.
". . . the average duration of our portfolio was somewhat longer
than that of the Index. As a result, the Fund was
well-positioned for the events of August and September."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Annualized Since Since
6 Month 1 Year/2 3 Year/2 5 Year/2 Inception/2 Inception/2
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class I Shares/1 4.74% 7.99% 6.24% 5.64% 7.75% 94.96%
- ----------------------------------------------------------------------------------------------------------------
Class A Shares 4.51% 7.52% 5.88% 5.33% 7.16% 69.41%
Class A Shares, with Load/3 (0.45)% 2.41% 4.16% 4.31% 6.47% 61.29%
- ----------------------------------------------------------------------------------------------------------------
Class B Shares 4.16% 6.85% 5.65% 5.19% 6.09% 5.46%
Class B Shares, with Load/4 (0.84)% 1.85% 4.45% 4.88% 0.51% 0.46%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Intermediate Bond Fund's date of inception was December 20, 1989
for Class I Shares, April 15, 1991, for Class A Shares and January 6, 1998,
for Class B Shares. The one-year, 3-year and 5-year returns of the Class B
Shares include information from the commencement of operations of the Class
I Shares, rather than the date Class B Shares were introduced. The
performance of the Class B Shares prior to their introduction date does not
reflect shareholder servicing fees, which, if reflected, would reduce the
performance quoted for such periods.
<PAGE>
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 4.75%.
4 Performance calculated based on the maximum deferred sales charge in effect
at November 30, 1998, of 5.00%.
16
<PAGE>
[GRAPHIC OMITTED]
Armada GNMA Fund Overview
Comments from the Taxable Fixed Income Team
Fund Performance
For the six months ended November 30, 1998, the Fund produced a total return
of 3.16% for institutional investors and 3.03% (before sales charges) for retail
class A investors. Over the same period, the Fund's benchmark, the Lehman GNMA
Index posted a total return of 3.47%. As of the same date, the Fund had SEC
30-day yields of 6.00% and 5.52% for institutional and retail shares,
respectively.
Fund Strategy
Timely allocation decisions plus durations longer than the Index were
primarily responsible for the Fund's strong performance in the tumultuous
environment of the period. As interest rates moved lower earlier in the year,
prepayment risk on mortgage-backed securities increased. In response, exposures
in the sector were reduced in favor of Treasuries in the spring. In addition,
the Fund maintained an overweighting in seasoned issues that are less likely to
experience prepayment volatility. As a result, when investors began moving en
masse to quality, our mortgage-backed holdings suffered but to a far lesser
degree than many others.
Fund Structure
As of November 30, 1998 approximately 4.7% of the Fund's assets were invested
in U.S. Treasury and Agency securities and 87.4% in mortgage-backed securities.
The remainder was held in cash and cash equivalents. As of the same date, the
average maturity of the portfolio's holdings was 8.92 years.
Looking Ahead
With situations both at home and abroad stabilizing, the Federal Reserve's
recent actions to cut interest rates and non-existent inflationary pressure, the
environment in the marketplace has improved significantly over the past two
months. Sectors trampled underfoot as investors fled to safety are making a
comeback -- among them, mortgage-backed. At the same time, it appears that
interest rates are trending downward, and prepayment risks are high.
Consequently, while we may increase the Fund's holdings in mortgage-backs in the
months ahead, we will continue to seek out and focus on less prepayment
sensitive issues.
"Timely allocation decisions plus durations longer than the Index
were primarily responsible for the Fund's strong performance in
the tumultuous environment of the period."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Since Since
6 Month 1 Year 3 Year/2 Inception/2 Inception/2
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 3.16% 6.99% 7.14% 8.30% 40.98%
- ---------------------------------------------------------------------------------------------------------------
Class A Shares 3.03% 6.73% 6.94% 8.62% 20.14%
Class A Shares, with Load/3 (1.89)% 1.63% 5.24% 6.26% 14.43%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada GNMA Fund's date of inception was August 10, 1994 for Class I
Shares and September 11, 1996 for Class A Shares. The annualized 3-year
return of the Class A Shares includes information from the commencement of
operations of the Class I Shares, rather than the date Class A Shares were
introduced. The performance of the Class A Shares prior to their
introduction date does not reflect shareholder servicing fees, which, if
reflected, would reduce the performance quoted for such periods.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 4.75%.
17
<PAGE>
[GRAPHIC OMITTED]
Armada Enhanced Income Fund Overview
Comments from the Taxable Fixed Income Team
Fund Performance
For the six months ended November 30, 1998, the Fund produced a total return
of 3.65% for institutional investors and 3.70% (before sales charges) for retail
class A investors. Over the same period, the industry benchmark, the Merrill
Lynch 1-5 Year Government/Corporate Index, posted a total return of 4.48%. As of
the same date, also, the fund had SEC 30-day yields of 5.31% and 5.01% for
institutional and retail shares, respectively.
Fund Strategy
Consistent with our belief that interest rates would trend downward, the
average duration of the Fund was somewhat longer than that of the Index
throughout the period. This positioning contributed positively to performance.
However, in this fund, our efforts are focused on maintaining a yield advantage
with high quality spread product -- and virtually all higher yielding issues
suffered as investors fled to Treasuries in August and September. As the markets
calmed down throughout the fall, many of these securities strengthened, and as
the period drew to a close, began gaining on Treasuries. Nevertheless, due to
its heavy weighting is asset-backed and exposures in non-government sectors
during this extremely volatile period, the Fund lagged its benchmark.
Fund Structure
As of November 30, 1998, approximately 24.7% of the Fund's assets were
invested in U.S. Treasury and Agency securities, 9.0% in mortgage-backed
securities, 16.7% in corporate bonds, 43.0% in asset-backed securities with the
remainder invested in a range of government securities. As of the same date, the
average maturity of the portfolio's holdings was 4.11 years; the average credit
quality, triple-A.
Looking Ahead
While the weeks ahead could be bumpy ones, we are optimistic about the Fund's
prospects. At home and abroad, the environment has improved significantly.
Liquidity is returning to the marketplace, albeit slowly. Already showing
strength, our holdings should continue to bounce back in the months ahead. At
the same time, however, we are wary. Progress is being made on the problems that
triggered the "quality stampede" -- but most are still a long way from
resolution. Anxiety still lingers just below the surface at home and abroad.
Consequently, we expect to approach the markets cautiously in the months ahead.
"At home and abroad, the environment has improved significantly. Already showing
strength, our holdings should continue to bounce back in the months ahead."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Since Since
6 Month 1 Year 3 Year Inception/2 Inception/2
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 3.65% 6.76% 6.15% 6.26% 30.61%
- ---------------------------------------------------------------------------------------------------------------
Class A Shares 3.70% 6.86% 6.08% 6.26% 29.23%
Class A Shares, with Load/3 0.80% 3.97% 5.09% 5.55% 25.62%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Enhanced Income Fund's date of inception was July 7, 1994 for
Class I Shares and September 9, 1994 for Class A Shares.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 2.75%.
18
<PAGE>
[GRAPHIC OMITTED]
Armada Tax Exempt Outlook
Tax Exempt Market Overview
Remarks from the Advisers
Uncertainty regarding the impact of events abroad on the U.S. economy rippled
through the financial markets during the six months ended November 30, 1998. All
markets and all sectors were affected. Enthusiasm for Treasury securities
skyrocketed. Not quite as liquid, but perceived to be quite safe, municipal
funds experienced price gains as the Federal Reserve moved to lower interest
rates three times over the period. As a result, despite the extremely volatile
environment in the taxable markets, municipal markets were quiet in comparison
and posted gains.
Going forward, we believe the months ahead will be good for the municipals
and the fixed income markets. Balance sheets across the country are very strong,
and surpluses abound. While rates may drop lower in the coming months, many
municipalities may not need to issue new bonds, or given the surpluses, have the
taxpayer support to do so. In addition, many municipalities completed
restructuring outstanding debt in the low interest rate environment of the past
year. Consequently, new issuance in the year ahead may be rather light and
tighter supply will further stabilize the market. Given the instability of other
financial markets in recent months, and what we believe lies ahead, the sheer
stability of munis alone may attract more investors in the near-term, and over
the long run.
19
<PAGE>
[GRAPHIC OMITTED]
Armada Ohio Tax Exempt Fund Overview
Comments from the Tax Exempt Fixed Income Team
Recent Performance
For the six months ended November 30, 1998, the Armada Ohio Tax-Exempt Fund
returned 3.42% for institutional investors and 3.46% for retail investors
(before sales charges). By comparison, over the same period, the Lehman Seven
Year Municipal Bond Index returned 3.89%. Please note, however, that this
benchmark tracks the performance of municipal bonds of varying degrees of
quality in markets across the country. Over the course of the period, and in
fact since inception, the Fund's portfolio has been concentrated in high quality
securities issued by the State of Ohio.
Fund Strategy
As the taxable fixed income markets grew more volatile during the six months
ended November 30, 1998, many investors sought safe haven in strong muni
credits. As a result, the period was a good one for the Ohio muni market in
general, and for the Fund in particular. Concentrated in intermediate-term
securities, the portfolio's performance was strong as interest rates fell. These
issues were among the strongest performers in muni markets across the country
and in Ohio. As volatility in the taxable markets increased, and quality became
investors' overriding concern, with its portfolio focused on quality, the Fund
was well-positioned for this turn of events.
Fund Structure
As of November 30, 1998, holdings in the Fund's portfolio had an average
maturity of approximately 7.4 years and an effective duration of 5.8 years. The
average credit quality of the Fund's holdings was a strong double-A.
Approximately 45% of the portfolio's assets were invested in general obligation
securities. The remainder was held in revenue issues such as education, sewer
and water issues. Given the environment, no major changes are anticipated in the
Fund's quality or credit structures in the months ahead.
Looking Ahead
Going forward, we are optimistic in both the long and short-term for the Ohio
municipal market. In the short-term, with a new governor and administration able
to assess the situation objectively, school funding should become more of a
financial issue. Whatever decisions are made, it appears that eventually the
courts will be called upon to rule on the matter. Given this, we do not expect
this issue to be resolved in any time in the very near future.
Absent much of the sound and fury of the past year over this, the Ohio muni
marketplace is likely to be relatively quiet in the months ahead. Moreover,
given that demand for high quality municipal securities is strong, and may grow
stronger if volatility in the taxable markets increases and even greater numbers
of baby boomers seek safe havens, the market should remain very firm.
"Concentrated in intermediate-term securities, the portfolio's performance was
strong as interest rates fell . . . These issues were among the strongest
performers in muni markets across the country and in Ohio."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Annualized Since Since
6 Month 1 Year 3 Year 5 Year Inception/2 Inception/2
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class I Shares/1 3.42% 6.60% 5.63% 5.30% 6.11% 69.50%
- ---------------------------------------------------------------------------------------------------------------
Class A Shares 3.46% 6.61% 5.63% 5.31% 6.22% 58.49%
Class A Shares, with Load/3 0.39% 3.42% 4.56% 4.67% 5.80% 53.78%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Ohio Tax Exempt Fund's date of inception was January 5, 1990 for
Class I Shares and April 15, 1991 for Class A shares.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 3.00%.
20
<PAGE>
[GRAPHIC OMITTED]
Armada Pennsylvania Municipal Fund Overview
Comments from the Tax Exempt Fixed Income Team
Recent Performance
For the six months ended November 30, 1998, the Armada Pennsylvania Municipal
Fund returned 3.62% for institutional investors and 3.76% (before sales charges)
for retail investors. By comparison, over the same period, the Lehman Seven Year
Municipal Bond Index returned 3.89%. Please note, however, that this benchmark
tracks the performance of municipal bonds of varying degrees of quality in
markets across the country. Over the course of the period, and in fact, since
inception, the Fund's portfolio has been concentrated in high quality securities
issued in the State of Pennsylvania.
Fund Strategy
Refusing to compromise quality and chase yields, the portfolio's assets were
invested primarily in intermediate-term, high quality securities over the course
of the period. These holdings performed extremely well as interest rates dropped
and the environment in the taxable markets grew more volatile. In addition, the
Fund's focus on quality insulated it from the credit quality problems that
plagued the Pennsylvania marketplace over the past year. With over 82% of its
assets in securities rated triple-A by one or more of the major rating agencies,
the Fund felt almost none of the fallout from the bankruptcy of the Allegheny
Health, Education and Research Foundation (AHERF).
Fund Structure
Over the course of the period, the Fund's average duration was lengthened
slightly, moving out from 5.5 years at the start to 5.75 years on November 30,
1998. Approximately 48% of the portfolio's assets were invested in general
obligation or escrowed securities. The remainder were held in revenue issues
such as education, sewer and water issues. Given the environment, no major
changes are anticipated to the Fund's quality or maturity structures in the
months ahead.
Looking Ahead
Going forward, we are optimistic about the Fund's prospects. Clearly, as the
AHERF situation plays itself out, the market may be more volatile than other
muni markets across the country. Nevertheless, while supply in the marketplace
of higher quality issues is relatively tight, municipal balance sheets across
the state are in good shape and are likely to remain so for some time to come.
So, looking beyond hospital-related issues, we expect that interest in
Pennsylvania muni securities, particularly high quality bonds, will remain high.
Also, given the interest rate environment, we believe high quality securities
with non-callable or beneficial call features will perform particularly well and
we will look to increase exposure here in the coming months.
". . . the Fund's focus on quality insulated it from the credit quality problems
that plagued the Pennsylvania marketplace over the past year."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Since Since
6 Month 1 Year 3 Year/2 Inception/2 Inception/2
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class I Shares/1 3.62% 6.71% 5.57% 5.86% 27.79%
- -------------------------------------------------------------------------------------------------------------
Class A Shares 3.76% 6.80% 5.56% 6.82% 15.77%
Class A Shares, with Load/3 0.68% 3.61% 4.48% 5.38% 12.33%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada Pennsylvania Municipal Fund's date of inception was August 10,
1994 for Class I Shares and September 11, 1996 for Class A shares. The
annualized 3-year return of the Class A Shares includes information from
the commencement of operations of the Class I shares, rather than the date
Class A Shares were introduced. The performance of the Class A Shares prior
to their introduction date does not reflect shareholder servicing fees,
which, if reflected, would reduce the performance quoted for such periods.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998, of 3.00%.
21
<PAGE>
[GRAPHIC OMITTED]
Armada National Tax Exempt Fund Overview
Comments from the Tax Exempt Fixed Income Team
Recent Performance
For the six months ended November 30, 1998, the Armada National Tax-Exempt
Fund returned 3.61% for institutional investors and 3.53% (before sales charges)
for retail investors. By comparison, over the same period, the Lehman Seven Year
Municipal Bond Index returned 3.89%. Please note, however, that this benchmark
tracks the performance of municipal bonds of varying degrees of quality. Over
the course of the period, and in fact, since inception, the Fund's portfolio has
been concentrated in high quality issues.
Fund Strategy
As interest rates dropped and investors looked to lengthen maturities during
the six months period, attention focused on the intermediate range of the yield
curve. Concentrated in such issues, the Fund benefited. Moreover, given the
volatility of the financial markets, quality was also a key concern. Here,
having refused to compromise credit standards to chase yields earlier in the
year, the Fund was well-positioned when market sentiment shifted dramatically
and investors fled to quality. In short, the type of high quality,
intermediate-issues the Fund holds were very strong performers over the course
of the period.
Fund Structure
The growth of the Fund was also enhanced by the addition of assets from the
Fort Wayne National Common Trust Fund. The blending of these assets into our
portfolio gave us greater flexibility in making adjustments to the Fund's
positioning over the course of the period. As of November 30, 1998, the Fund had
a duration of 5.2 years with an average maturity of 6.5 years. Approximately 50%
of the portfolio's assets were invested in general obligation or escrowed
securities with the remainder held in revenue issues. Widely diversified, the
portfolio has holdings in over 25 states. And, as always, the credit quality is
extremely high-the average credit quality of the portfolio's holding is a strong
double-A.
Looking Ahead
Looking ahead, we believe that interest rates may move lower. Nonetheless,
because many municipalities have already taken advantage of the low interest
rate environment and because short-term capital is available at such low rates,
we do not expect the supply of municipals to surge in the coming months. As a
result, we're optimistic about the Fund's prospects in the months ahead. With
the holdings still concentrated in high quality, intermediate-term securities,
the Fund should do well in the declining rate environment we see ahead.
". . . the type of high quality, intermediate-issues the Fund holds were
very strong performers over the course of the period."
[BOUNDING BOX]
AGGREGATE TOTAL RETURN as of 11/30/98
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Annualized Cumulative
Annualized Annualized Annualized Since Since
6 Month 1 Year/2 3 Year/2 5 Year/2 10 Year/2 Inception/2 Inception/2
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Class I Shares/1 3.61% 7.13% 4.07% 4.16% 6.41% 7.27% 4.62%
- ------------------------------------------------------------------------------------------------------------------------
Class A Shares 3.53% 6.77% 3.95% 4.09% 6.37% 7.30% 3.16%
Class A Shares, with Load/3 (1.39)% 1.66% 2.28% 3.09% 5.85% (3.89)% (1.74)%
</TABLE>
[END OF BOUNDING BOX]
Past performance is not predictive of future performance.
1 Class I Shares are sold primarily to banks and trust companies which are
affiliated with National City Corporation and clients of National Asset
Management Corporation ("NAM"). Certain account level charges may apply.
2 The Armada National Tax Exempt Fund's date of inception was April 9, 1998
for Class I Shares and June 22, 1998 for Class A Shares. The one year,
annualized 3-year, annualized 5-year and annual 10-year returns of the
Class I and A Shares includes performance of a predecessor common trust
fund which commenced operations on July 31, 1984.
3 Performance calculated based on the maximum front-end sales charge in
effect at November 30, 1998 of 4.75%.
22
<PAGE>
[GRAPHIC OMITTED]
Armada Money Market Outlook
Money Market Overview
Very simply, the taxable money markets were extremely volatile over the
course of the six months ended November 30, 1998. Events in markets abroad and
indications that our own economy was slowing prompted a stampede to quality. In
August, the possible collapse of a multi-billion dollar hedge fund exacerbated
the situation. Treasury securities traded at rich premiums and liquidity
virtually vanished from all other sectors of the marketplace. While relatively
calmer, the atmosphere in the tax-free markets wasn't much better--strong supply
and declining interest rates dampened enthusiasm considerably.
In a move to restore confidence and liquidity, the Federal Reserve cut
interest rates in the final two months of the period. On this, as well as
positive moves by governments overseas to reform their markets and economies,
anxiety in the taxable markets subsided, but did not disappear completely.
Nevertheless, to a large degree, the Fed was successful. As the period drew to a
close, liquidity began to trickle back into the market. But it was a trickle,
and to date, with liquidity still hard to come by, it is still oftentimes hard
to maneuver. consistent with our belief that rates would decline, however, we
had worked hard earlier in the year to extend the maturities of the funds. As a
result, we're pleased to report that the Funds were well-positioned throughout
the period and for the current environment.
Going forward, we believe rates will remain flat or trend downward. While
there is room for such a decline in the taxable arena, rates are already low in
the tax-free sector. Here, at some point, we will hit a bottom--and, we may, in
fact see that point very soon. Given these circumstances, while opportunities to
extend maturities are still few and far between, we will continue to
aggressively seek out and capitalize on them in both the taxable and tax-free
markets. With regard to the taxable funds, in the months ahead, we expect to
explore a wider range of opportunities. At no time, however, in any of our
efforts, will we compromise the Fund's high quality standards in order to
enhance yield. As always, we believe that quality will be the key to performance
in the months ahead.
The Money Market Fund: As of November 30, 1998, approximately 74.6% of the
Fund's assets were invested in commercial paper with the remainder invested in
overnight securities. The average maturity of the Fund's holdings was 51 days.
The Government Money Market Fund: As of November 30, 1998, the Fund's assets
were invested in overnight securities as well as short-term agency and treasury
securities. The average maturity of the portfolio was approximately 46 days.
The Treasury Money Market Fund: The Fund was invested in 100% U.S. Treasury
Securities as of November 30, 1998, and the average maturity of the portfolio
was 48 days.
The Tax-Exempt Fund: As of November 30, 1998, the average maturity of assets
in the Fund's portfolio was approximately 47 days. As of the same date, assets
were invested primarily in high quality variable demand notes, tax-exempt
commercial paper and short-term bonds.
The Pennsylvania Tax-Exempt Money Market Fund: As of November 30, 1998, the
Fund's assets were primarily invested in daily and weekly variable rate paper,
tax-exempt commercial paper and the shorter maturities of long-term tax-exempt
issues. As of the same date, the average maturity of the Fund's holdings was 51
days.
The Ohio Tax-Exempt Money Market Fund: Launched September 15, 1998, the
Fund's assets were invested primarily in daily and weekly variable rate paper,
tax-exempt commercial paper and the shorter maturities of long-term tax-exempt
issues as of November 30, 1998. As of the same date, the average maturity of the
Fund's holdings was 49 days.
23
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada International Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 95.1%
Argentina -- 0.3%
YPF ADR ...................................... 18,000 $ 531
-------
Australia -- 3.7%
National Australia Bank ...................... 1,400 21
National Australia Bank ADR .................. 27,700 2,067
News Limited ADR?1? .......................... 60,200 1,686
Rio Tinto .................................... 170,000 2,189
-------
5,963
-------
Austria -- 0.8%
Mayr-Melnhof Karton .......................... 27,900 1,279
-------
Belgium -- 2.5%
Colruyt ...................................... 1,270 989
Fortis ....................................... 9,500 3,015
-------
4,004
-------
Bermuda -- 3.1%
Exel Limited, Series A ....................... 20,993 1,577
Mutual Risk Management ....................... 43,000 1,578
Tyco International ........................... 27,000 1,777
-------
4,932
-------
Denmark -- 1.8%
Tele Danmark, Series B ....................... 12,000 1,340
Unidanmark, Series A ......................... 18,400 1,502
-------
2,842
-------
Finland -- 1.7%
Nokia ADR .................................... 18,200 1,784
Nokia Oyj, Series A .......................... 9,300 911
-------
2,695
-------
France -- 8.2%
Altran Technologies SA ....................... 3,500 813
AXA .......................................... 21,200 2,739
L'Oreal ...................................... 3,850 2,397
Lyonnaise Des Eaux ........................... 13,600 2,685
Pinault-Printemps-Redoute .................... 8,150 1,390
Rhone Poulenc ADR ............................ 15,000 750
Total, Series B .............................. 2,500 310
Total ADR .................................... 24,100 1,473
Valeo ........................................ 6,750 578
-------
13,135
-------
Germany -- 7.6%
Allianz AG ................................... 6,500 2,340
BASF ......................................... 18,700 708
Bayerische Vereinsbank ....................... 15,000 1,298
BHF Bank ..................................... 40,000 1,580
Buderus ...................................... 2,000 772
DaimlerChrysler ADR* ......................... 7,482 686
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Germany -- Continued
DaimlerChrysler* ............................. 6,030 $ 566
Hoechst ...................................... 27,500 1,180
Mannesmann ................................... 9,500 1,028
Veba ......................................... 20,350 1,128
Volkswagen ................................... 9,900 805
-------
12,091
-------
Hong Kong -- 1.0%
Hong Kong & China Gas ........................ 481,800 641
Li & Fung .................................... 530,000 996
-------
1,637
-------
Ireland -- 1.8%
Bank of Ireland .............................. 68,400 1,416
Elan ADR* .................................... 21,000 1,431
-------
2,847
-------
Italy -- 3.2%
Istituto Bancario San
Paolo di Torino ............................. 173,261 2,844
Telecom Italia ADR ........................... 27,600 2,229
-------
5,073
-------
Japan -- 15.1%
Advantest .................................... 27,400 1,830
Bridgestone .................................. 88,000 2,059
Canon ........................................ 43,000 950
Daiwa House Industries ....................... 165,000 1,749
Fuji Heavy Industries ........................ 300,000 1,499
Fuji Photo Film .............................. 45,000 1,682
Fujitsu Support & Service .................... 4,000 224
Ito Yokado ................................... 37,000 2,260
Kao .......................................... 77,000 1,457
NTT .......................................... 131 979
Seven-Eleven ................................. 14,000 1,035
SMC .......................................... 11,600 866
Softbank ..................................... 33,000 1,903
Sony ......................................... 15,700 1,149
Takeda Chemical Industries ................... 74,000 2,495
Tokio Marine & Fire Insurance ................ 93,000 1,050
Yahoo Japan* ................................. 15 963
-------
24,150
-------
Netherlands -- 9.7%
Aegon ADR .................................... 15,400 1,632
Akzo Nobel ................................... 900 37
Akzo Nobel ADR ............................... 8,000 327
ING Groep .................................... 18,800 1,077
Koninklijke KPN .............................. 23,049 995
Koninklijke Ahold ADR ........................ 59,700 2,071
See Accompanying Notes
24
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada International Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Netherlands -- Continued
Nutreco Holding .............................. 42,900 $ 1,683
Philips Electronics ADR ...................... 15,500 981
Royal Dutch Petroleum ........................ 7,000 335
Royal Dutch Petroleum,
NY Shares ................................... 24,400 1,147
TNT Post Group ............................... 23,049 580
Unilever ADR ................................. 30,200 2,335
Wolters Kluwer ............................... 12,000 2,288
-------
15,488
-------
Norway -- 0.4%
Norsk Hydro .................................. 16,800 631
-------
Singapore -- 0.4%
Flextronics International* ................... 10,000 665
-------
Spain -- 3.6%
Banco Bilbao Vizcaya ADR ..................... 31,700 499
Endesa ADR ................................... 87,100 2,265
Telefonica de Espana ADR ..................... 15,700 2,188
Telepizza* ................................... 88,660 762
-------
5,714
-------
Sweden -- 2.2%
Fastighets AB Balder* ........................ 1,820 17
Pharmacia & Upjohn ........................... 51,400 2,676
Svenska Cellulosa, Series A .................. 27,400 596
Svenska Cellulosa, Series B .................. 13,000 285
-------
3,574
-------
Switzerland -- 6.1%
Nestle ....................................... 850 1,766
Novartis ..................................... 1,650 3,098
Roche Holding ................................ 150 1,763
Swiss Reinsurance ............................ 1,250 3,160
-------
9,787
-------
United Kingdom -- 21.3%
Abbey National ............................... 127,100 2,568
Allied Zurich* ............................... 101,200 1,444
BOC Group .................................... 65,000 944
British Aerospace ............................ 196,000 1,684
British American Tobacco ..................... 32,500 298
British Petroleum ADR ........................ 15,300 1,409
Cable & Wireless ............................. 85,000 1,079
Compass Group ................................ 68,000 727
Diageo ADR ................................... 32,716 1,495
General Electric ............................. 181,000 1,479
Glaxo Wellcome ............................... 21,385 676
Glaxo Wellcome ADR ........................... 61,100 3,880
Logica ....................................... 215,000 1,560
Number of Value
Shares/Par (000) (000)
---------------- -----
COMMON STOCK -- Continued
United Kingdom -- Continued
Marks & Spencer ......................... 116,700 $ 793
National Grid Group ..................... 291,390 2,315
Pearson ................................. 138,700 2,493
Royal & Sun Alliance .................... 199,700 1,667
Siebe ................................... 257,200 925
SmithKline Beecham ADR .................. 33,100 2,017
Tesco ................................... 504,400 1,489
Tomkins ADR ............................. 86,700 1,571
Vodafone Group .......................... 101,000 1,491
--------
34,004
--------
United States -- 0.6%
Amoco ................................... 15,200 896
--------
TOTAL COMMON STOCK
(Cost $135,212) ............................................. 151,938
--------
PREFERRED STOCK -- 0.4%
Germany -- 0.4%
SAP ..................................... 1,200 625
--------
TOTAL PREFERRED STOCK
(Cost $380) ................................................. 625
--------
CLOSED END INVESTMENT COMPANY -- 0.4%
European Warrant Fund* .................. 39 676
--------
TOTAL CLOSED END INVESTMENT COMPANY
(Cost $881) ................................................. 676
--------
FOREIGN BONDS -- 1.0%
United Kingdom Treasury
8.000%.......................06/10/03 810 1,506
--------
TOTAL FOREIGN BONDS
(Cost $1,519) ............................................... 1,506
--------
CASH EQUIVALENT -- 2.9%
Goldman Sachs Financial
Square Premium Money
Market Fund ........................... 4,611 4,611
--------
TOTAL CASH EQUIVALENT
(Cost $4,611) ............................................... 4,611
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $142,603) ............................................. $159,356
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.2% ................................................. 373
--------
See Accompanying Notes
25
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada International Equity Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
NET ASSETS:
Portfolio shares of Class I (unlimited
authorization -- no par value)
based on 15,031,210 outstanding
shares of beneficial interest ................. $151,805
Portfolio shares of Class A (unlimited
authorization -- no par value) based on
57,254 outstanding shares of
beneficial interest ........................... 603
Portfolio shares of Class B (unlimited
authorization -- no par value) based
on 2,030 outstanding shares of
beneficial interest ........................... 22
Undistributed net investment income ............ 1,000
Accumulated net realized loss
on investments ................................ (10,358)
Net unrealized appreciation
on investments ................................ 16,753
Net realized loss from foreign
currency transactions ......................... (91)
Net unrealized depreciation of foreign
currency and translation of other assets
and liabilities in foreign
currency investments .......................... (5)
--------
TOTAL NET ASSETS -- 100.0% ....................... $159,729
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I .............................. $10.58
========
NET ASSET VALUE AND
REDEMPTION PRICE PER
SHARE -- CLASS A .............................. $10.54
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($10.54 divide 94.5%) ......................... $11.15
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS B .................... $10.52
========
- ----------
* Non-income producing security
ADR -- American Depository Receipt
See Accompanying Notes
26
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada International Equity Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1998 For the Period
(Unaudited) Ended May 31, 1998
--------------------------------- ---------------------------------
Class I Class A Class B Class I/5 Class A/5 Class B/6
------- ------- ------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $ 10.86 $10.82 $10.83 $ 10.00 $10.00 $ 9.30
-------- ------ ------ -------- ------ ------
Income From Investment Operations
Net investment income/(loss) ...................... 0.00 (0.02) (0.06) 0.08 0.04 0.05
Net gain on securities (realized and unrealized) .. (0.28) (0.26) (0.25) 0.79 0.79 1.48
-------- ------ ------ -------- ------ ------
Total from investment operations ............... (0.28) (0.28) (0.31) 0.87 0.83 1.53
-------- ------ ------ -------- ------ ------
Less Distributions
Dividends from net investment income .............. (0.00) (0.00) (0.00) (0.01) (0.01) (0.00)
-------- ------ ------ -------- ------ ------
Total distributions ............................ (0.00) (0.00) (0.00) (0.01) (0.01) (0.00)
-------- ------ ------ -------- ------ ------
Net asset value, end of period ...................... $ 10.58 $10.54 $10.52 $ 10.86 $10.82 $10.83
======== ====== ====== ======== ====== ======
Total Return......................................... (2.58)%/7 (2.59)%/4,7 (2.86)%/4,7 8.76%/7 8.28%/4,7 16.45%/4,7
Ratios/Supplemental Data
Net assets, end of period (in 000's) .............. $159,104 $ 604 $ 21 $135,942 $ 276 $ 1
Ratio of expenses to average net assets ........... 1.36%/1,8 1.61%/2,8 2.36%/3,8 1.09%/1,8 1.39%/2,8 2.08%/3,8
Ratio of net investment income/(loss) to
average net assets ............................... 0.21%/1,8 (0.09)%/2,8 (0.94)%/3,8 1.19%/1,8 1.49%/2,8 0.59%/3,8
Portfolio turnover rate ........................... 39% 39% 39% 28% 28% 28%
</TABLE>
1 The operating expense ratio and net investment income/(loss) ratio before
fee waivers by the Investment Adviser for Class I for the periods ended
November 30, 1998 and May 31, 1998 would have been 1.36% and 0.21%, 1.24%
and 1.04%, respectively.
2 The operating expense ratio and net investment income/(loss) ratio before
fee waivers by the Investment Adviser for Class A for the periods ended
November 30, 1998 and May 31, 1998 would have been 1.61% and (0.09)%, 1.47%
and 1.41%, respectively.
3 The operating expense ratio and net investment income/(loss) ratio before
fee waivers by the Investment Adviser for Class B for the periods ended
November 30, 1998 and May 31, 1998 would have been 2.36% and (0.94)%, 2.14%
and 0.53%, respectively.
4 Total return excludes sales charge.
5 Class I and Class A both commenced operations on August 1, 1997.
6 Class B commenced operations on January 6, 1998.
7 Returns are for the period indicated and have not been annualized.
8 Annualized.
See Accompanying Notes
27
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Growth Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- 89.9%
Advertising -- 0.8%
ADVO* ............................................ 20,000 $ 517
--------
Aerospace & Defense -- 0.4%
Aeroflex* ........................................ 17,000 233
--------
Broadcasting, Newspapers &
Advertising -- 0.9%
Citadel Communications* .......................... 22,500 551
--------
Business Services -- 22.8%
American Bank Note
Holographics* ................................... 80,575 1,088
American Management Systems ...................... 35,000 1,035
Barnett* ......................................... 70,000 888
Boron Lepore & Associates* ....................... 13,600 418
Concord EFS* ..................................... 19,600 623
Dames & Moore .................................... 55,000 705
DST Systems* ..................................... 14,000 758
DVI* ............................................. 21,700 384
FYI* ............................................. 26,600 838
Hagler Bailly* ................................... 26,000 471
International Telecommunications
Data Systems* ................................... 20,500 505
Iron Mountain* ................................... 21,800 640
Lason * .......................................... 8,000 492
Metzler Group* ................................... 21,700 903
NCO Group* ....................................... 13,570 501
Nova* ............................................ 22,800 725
Policy Management Systems* ....................... 46,000 2,352
Tetra Technologies* .............................. 50,312 1,053
--------
14,379
--------
Computers Services -- 12.8%
Ardent Software* ................................. 27,000 479
Aspen Technology* ................................ 20,500 286
Axent Technologies* .............................. 19,500 511
Black Box* ....................................... 30,000 1,052
Cognos* .......................................... 65,000 1,300
Datastream Systems* .............................. 23,500 242
Engineering Animation* ........................... 12,200 478
Genesys Telecom Labs* ............................ 18,200 522
HNC Software* .................................... 8,800 290
Infinium Software * .............................. 5,500 35
New Dimension Software* .......................... 14,200 475
Software AG Systems* ............................. 44,500 857
Symix Systems* ................................... 13,570 274
Systems & Computer
Technology* ..................................... 39,200 714
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Computers Services -- Continued
Unigraphics Solutions* ........................... 19,600 $ 292
Visio Corporation* ............................... 7,700 272
--------
8,079
--------
Drugs & Health Care -- 2.2%
Gliatech* ........................................ 14,700 358
NBTY Incorporated* ............................... 44,300 271
Parexel International* ........................... 15,900 415
Scios ............................................ 43,000 325
--------
1,369
--------
Electrical Equipment -- 2.2%
Dallas Semiconductor ............................. 37,000 1,397
--------
Electronics -- 2.0%
Maxwell Technologies* ............................ 18,200 483
Mercury Computer Systems* ........................ 33,600 748
--------
1,231
--------
Entertainment -- 1.3%
Macrovision* ..................................... 23,100 839
--------
Financial Services -- 0.3%
Amresco .......................................... 29,000 212
--------
Hazardous Waste Management -- 0.7%
Casella Waste Systems, Cl A* ..................... 14,200 443
--------
Home Furnishings & Housewares -- 0.9%
Ethan Allen Interiors ............................ 15,000 592
--------
Hotels & Lodging -- 1.8%
Pegasus Systems * ................................ 22,500 501
Vistana* ......................................... 44,500 629
--------
1,130
--------
Information Retrieval Services -- 1.5%
QRS* ............................................. 22,500 941
--------
Insurance - Life -- 4.6%
Annuity & Life* .................................. 59,700 1,521
Scottish Annuity & Life* ......................... 28,000 354
Wackenhut Corrections* ........................... 39,000 1,053
--------
2,928
--------
Insurance - Property and Casualty -- 1.5%
Frontier Insurance Group ......................... 67,600 959
--------
Leasing & Renting -- 2.6%
Renters Choice* .................................. 26,700 644
United Rentals* .................................. 38,500 1,011
--------
1,655
--------
See Accompanying Notes
28
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Growth Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Machinery & Heavy Equipment -- 1.1%
Nordson .......................................... 15,000 $ 713
--------
Machinery (Electric) -- 1.3%
Donaldson ........................................ 40,000 800
--------
Medical & Medical Services -- 13.8%
ABR Information Services* ........................ 37,200 627
American Oncology Resources* ..................... 42,000 470
Biomatrix* ....................................... 12,000 583
Carematrix* ...................................... 26,200 734
Life Technologies ................................ 17,000 634
Medquist* ........................................ 20,700 632
NCS Healthcare, Cl A* ............................ 23,844 491
Orthodontic Centers of America* .................. 25,000 478
Priority Healthcare, Cl B* ....................... 2,850 104
QuadraMed* ....................................... 32,900 788
Sabratek* ........................................ 13,570 229
Serologicals* .................................... 51,500 1,539
Shared Medical Systems ........................... 23,700 1,241
Sunrise Assisted Living* ......................... 4,200 181
--------
8,731
--------
Paper & Paper Products -- 1.0%
Bemis ............................................ 16,200 613
--------
Petroleum & Fuel Products -- 0.6%
Omni Energy Services* ............................ 36,700 358
--------
Pharmaceutical -- 2.7%
Jones Pharmaceuticals ............................ 27,700 997
King Pharmaceuticals* ............................ 48,800 730
--------
1,727
--------
Railroads -- 0.3%
Motivepower Industries* .......................... 5,400 164
--------
Retail -- 1.1%
Fred's, Class A .................................. 19,700 277
Men's Wearhouse* ................................. 15,900 402
--------
679
--------
Semi-Conductors/Instruments -- 4.2%
Atmi* ............................................ 8,500 163
Photronics Labs* ................................. 10,000 200
Sanmina* ......................................... 10,200 508
SDL* ............................................. 15,300 341
Synopsys* ........................................ 30,000 1,419
--------
2,631
--------
Number of Value
Shares/PAR (000) (000)
--------------- -----
COMMON STOCK -- Continued
Telephones & Telecommunication -- 3.6%
Brightpoint*...................................... 56,500 $ 848
Dycom Industries*................................. 14,000 550
Pacific Gateway Exchange*......................... 19,625 881
-------
2,279
-------
Telecommunications Equipment -- 0.3%
World Access*..................................... 10,600 216
-------
Wholesale -- 0.6%
Ha Lo Industries*................................. 10,800 345
-------
Total Common Stock
(Cost $53,440).................................... 56,711
-------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 0.8%
Federal Home Loan Mortgage Corporation -- 0.8%
Discount Note
4.950%...............12/03/98 $150 150
5.170%...............12/01/98 350 350
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $500)................................................ 500
-------
COMMERCIAL PAPER -- 4.5%
John Deer
4.870%...............12/01/98 2,850 2,850
-------
TOTAL COMMERCIAL PAPER
(Cost $2,847).............................................. 2,850
-------
CASH EQUIVALENT -- 4.8%
Goldman Sachs Financial Square Premium
Money Market Fund............................... 3,044 3,044
-------
TOTAL CASH EQUIVALENT
(Cost $3,044).............................................. 3,044
-------
TOTAL INVESTMENTS -- 100.0%
(Cost $59,831)............................................. $63,105
=======
OTHER ASSETS AND LIABILITIES,
NET -- 0.0%................................................ 23
-------
See Accompanying Notes
29
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Growth Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
5,966,608 outstanding shares of
beneficial interest ......................................... $ 62,873
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
47,867 outstanding shares of
beneficial interest ......................................... 551
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
1,234 outstanding shares of
beneficial interest ......................................... 10
Accumulated net realized loss
on investments .............................................. (3,972)
Net unrealized appreciation
on investments .............................................. 3,717
Overdistributed net investment income ........................ (51)
--------
TOTAL NET ASSETS -- 100.0% ..................................... $ 63,128
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................................ $ 10.49
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $ 10.46
========
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($10.46 / 94.5%) ............................................ $ 11.07
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................................. $ 10.40
========
- -------------
*Non-income producing security.
See Accompanying Notes
30
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Small Cap Growth Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1998 For the Period
(Unaudited) Ended May 31, 1998
------------------------------------- -----------------------------------
<S> <C> <C> <C> <C> <C> <C>
Class I Class A Class B Class I/6 Class A/6 Class B/7
----------- ------- ------- --------- --------- ---------
Net asset value, beginning of period............. $ 11.69 $11.68 $11.66 $ 10.00 $10.00 $10.64
------- ------ ------ ------- ------ ------
Income From Investment Operations
Net investment income/(loss)................... (0.01) (0.02) 0.36 0.01 0.01 (0.01)
Net gain/(loss) on securities
(realized and unrealized).................... (1.19) (1.20) (1.62) 1.72 1.71 1.03
------- ------ ------ ------- ------ ------
Total from investment operations............ (1.20) (1.22) (1.26) 1.73 1.72 1.02
------- ------ ------ ------- ------ ------
Less Distributions
Dividends from net investment income........... (0.00) (0.00) (0.00) (0.01) (0.01) (0.00)
Distributions from net realized capital gains.. (0.00) (0.00) (0.00) (0.03) (0.03) (0.00)
------- ------ ------ ------- ------ ------
Total distributions......................... (0.00) (0.00) (0.00) (0.04) (0.04) (0.00)
------- ------ ------ ------- ------ ------
Net asset value, end of period................... $ 10.49 $10.46 $10.40 $ 11.69 $11.68 $11.66
======= ====== ====== ======= ====== ======
Total Return (10.26)%/5 (10.45)%/4,5 (10.81)%/4,5 17.35%/5 17.18%/4,5 9.59%/4,5
Ratios/Supplemental Data
Net assets, end of period (in 000's)........... $62,614 $ 501 $ 13 $54,476 $ 331 $ 1
Ratio of expenses to average net assets........ 1.21%/8 1.46%/8 2.17%/8 0.98%/1,8 1.23%/2,8 1.92%/3,8
Ratio of net investment income/(loss) to
average net assets........................... (0.16)%/8 (0.41)%/8 (0.95)%/8 0.14%/1,8 (0.32)%/2,8 (0.87)%/3,8
Portfolio turnover rate........................ 60% 60% 60% 31% 31% 31%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Administrator for Class I for the period ended May 31, 1998
would have been 1.09% and 0.03%, respectively.
2 The operating expense ratio and the net investment income/(loss) ratio
before fee waivers by the Administrator for Class A for the period ended
May 31, 1998 would have been 1.34% and (0.43)%, respectively.
3 The operating expense ratio and the net investment income ratio before fee
waivers by the Administrator for Class B for the period ended May 31, 1998
would have been 3.06% and (2.01)%, respectively.
4 Total return excludes sales charge.
5 Returns are for the period indicated and have not been annualized.
6 Class I and Class A both commenced operations on August 1, 1997.
7 Class B commenced operations on January 6, 1998.
8 Annualized.
See Accompanying Notes
31
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Value Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- 97.6%
Automotive Parts-Equipment -- 3.1%
Amcast Industrial ................................ 100,800 $ 1,770
Simpson Industries ............................... 130,000 1,361
Spartan Motors ................................... 187,200 1,176
Standard Products ................................ 125,000 2,328
Transpro ......................................... 251,400 1,524
--------
8,159
--------
Banking -- 4.1%
First Virginia Banks ............................. 87,500 3,927
UnionBanCal ...................................... 68,700 6,857
--------
10,784
--------
Broadcasting -- 0.7%
Liberty .......................................... 39,000 1,892
--------
Building & Building Supplies -- 0.7%
Patrick Industries ............................... 125,000 1,883
--------
Business Servicess -- 3.7%
BancTec* ......................................... 220,000 2,901
Wang Labs* ....................................... 265,000 6,724
--------
9,625
--------
Chemicals -- 3.0%
Geon ............................................. 180,000 4,005
High Plains* ..................................... 324,600 598
Terra Industries ................................. 256,800 1,396
Wellman .......................................... 141,000 1,710
--------
7,709
--------
Computer Software -- 6.8%
Adobe Systems .................................... 100,000 4,487
Autodesk ......................................... 150,000 5,466
Mapinfo* ......................................... 174,500 2,410
Structural Dynamics Research* .................... 100,000 1,744
Wall Data* ....................................... 211,700 3,612
--------
17,719
--------
Computers -- 2.2%
Exabyte* ......................................... 230,000 1,703
MicroAge* ........................................ 227,100 3,988
--------
5,691
--------
Containers & Packaging -- 1.4%
Crown Cork & Seal ................................ 105,000 3,544
--------
Drugs & Health Care -- 1.9%
Bindley Western Industries ....................... 130,000 5,021
--------
Electronics -- 3.9%
Arrow Electronics* ............................... 170,000 3,698
Bell Industries* ................................. 250,000 2,609
Bell Micro Products* ............................. 324,100 2,988
Jaco Electronics* ................................ 190,000 873
--------
10,168
--------
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Entertainment -- 1.3%
King World Productions* .......................... 120,000 $ 3,270
--------
Freight and Shipping -- 1.6%
Air Express International ........................ 110,000 2,444
Pittstion Burlington Group ....................... 183,100 1,591
--------
4,035
--------
Financial Services -- 5.6%
ARM Financial Group, Class A ..................... 269,400 5,792
Liberty Financial Companies ...................... 160,150 4,654
Phoenix Investment Partners ...................... 478,800 4,070
--------
14,516
--------
Foods -- 0.5%
John B. Sanfillippo* ............................. 114,000 431
Thorn Apple Valley* .............................. 291,100 955
--------
1,386
--------
Household Products -- 0.7%
RIVAL ............................................ 177,500 1,891
--------
Insurance -- 0.9%
PMI Group ........................................ 45,000 2,461
--------
Insurance - Life -- 0.6%
Kansas City Life Insurance ....................... 20,200 1,654
--------
Insurance - Property and Casualty -- 6.1%
Commerce Group ................................... 63,900 2,189
Farm Family Holdings* ............................ 51,000 1,785
Harleysville Group ............................... 213,900 4,532
Horace Mann Educators ............................ 130,000 3,664
PXRE ............................................. 85,000 1,886
Selective Insurance Group ........................ 100,000 1,894
--------
15,950
--------
Leisure -- 2.6%
Arctic Cat ....................................... 175,500 1,832
Brunswick ........................................ 220,000 4,840
--------
6,672
--------
Manufactured Housing -- 4.0%
Cavalier Homes ................................... 422,000 4,563
Fleetwood Enterprises ............................ 100,000 3,369
Southern Energy Homes* ........................... 360,700 2,480
--------
10,412
--------
Marine Transportation -- 0.1%
Alexander & Baldwin .............................. 17,000 391
--------
Measuring Devices -- 0.5%
X-Rite ........................................... 152,500 1,334
--------
See Accompanying Notes
32
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Value Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Medical & Medical Services -- 3.7%
Imation* ......................................... 225,700 $ 3,668
Maxicare Health Plans* ........................... 247,500 1,446
West ............................................. 145,651 4,424
--------
9,538
--------
Metals & Mining -- 3.5%
Cleveland Cliffs ................................. 130,900 4,982
Nord Resources* .................................. 464,400 842
Southern Peru Copper ............................. 275,700 3,239
--------
9,063
--------
Oil & Equipment Services -- 0.3%
BJ Services Companies* ........................... 50,000 691
Seitel* .......................................... 7,100 95
--------
786
--------
Oil & Gas -- 2.1%
Miller Exploration* .............................. 150,000 745
Noble Affiliates ................................. 75,000 1,898
Patina Oil & Gas ................................. 145,000 417
Seagull Energy* .................................. 305,000 2,497
--------
5,557
--------
Paper & Forest Products -- 5.1%
Rayonier ......................................... 60,000 2,550
Rock-Tenn ........................................ 308,200 5,028
Union Camp Corporation ........................... 90,000 5,822
--------
13,400
--------
Real Estate -- 1.9%
Great Lakes REIT ................................. 197,500 3,111
Thornburg Mortgage Asset ......................... 222,800 1,950
--------
5,061
--------
Restaurants -- 2.0%
Buffets* ......................................... 175,000 2,045
Piccadilly Cafeterias ............................ 145,000 1,550
Rare Hospitality* ................................ 125,000 1,555
--------
5,150
--------
Retail Merchandising -- 0.7%
Bon Ton Stores* .................................. 235,000 1,821
--------
Savings & Loan Associations -- 1.5%
Washington Federal ............................... 150,000 3,834
--------
Semi-Conductors/Instruments -- 2.6%
Lattice Semiconductor* ........................... 147,500 5,444
Opti* ............................................ 341,400 1,376
--------
6,820
--------
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Semi-Conductors/Capital Equipment -- 3.7%
Cypress Semiconductor* ........................... 275,000 $ 2,802
Electroglas* ..................................... 140,000 2,004
LTX* ............................................. 285,000 935
Silicon Valley Group* ............................ 315,000 3,878
--------
9,619
--------
Specialty Chemicals -- 2.4%
Hanna Company .................................... 100,000 1,406
Optical Coating Laboratory ....................... 100,000 1,888
Schulman ......................................... 145,000 3,104
--------
6,398
--------
Steel -- 6.1%
AK Steel Holding ................................. 60,000 1,151
Inland Steel Industries .......................... 186,532 3,416
Insteel Industries ............................... 328,400 1,847
Material Sciences* ............................... 125,000 1,125
Novamerican Steel* ............................... 242,500 1,349
Olympic Steel* ................................... 387,500 2,301
Ryerson Tull, Class A* ........................... 229,900 2,543
Steel Technologies ............................... 258,800 2,143
--------
15,875
--------
Tire & Rubber -- 1.9%
Cooper Tire & Rubber ............................. 170,000 3,326
TBC .............................................. 247,500 1,702
--------
5,028
--------
Tobacco -- 0.5%
DIMON ............................................ 150,000 1,228
--------
Transportation -- 1.6%
Amerco* .......................................... 175,000 4,091
--------
Trucking -- 2.0%
US Freightways ................................... 55,000 1,478
Yellow* .......................................... 230,000 3,723
--------
5,201
--------
TOTAL COMMON STOCK
(Cost $256,727) ............................................. 254,637
--------
PREFERRED STOCK -- 0.8%
Finance -- 0.8%
Thornburg Mortgage Asset ......................... 85,000 2,035
--------
TOTAL PREFERRED STOCK
(Cost $2,243) ............................................... 2,035
--------
See Accompanying Notes
33
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Small Cap Value Fund
November 30, 1998
(Unaudited)
PAR Value
(000) (000)
----------- -----
CASH EQUIVALENT -- 1.0%
Fidelity Domestic Money
Market Fund ..................... 2,495 $ 2,495
--------
TOTAL CASH EQUIVALENT
(Cost $2,495) .................................... 2,495
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $261,465) .................................. $259,167
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% ...................................... 1,615
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
17,874,983 outstanding shares
of beneficial interest ........................... 239,671
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
831,550 outstanding shares of
beneficial interest .............................. 11,222
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
19,651 outstanding shares
of beneficial interest ........................... 260
Accumulated net realized gain
on investments ................................... 11,362
Net unrealized depreciation on investments ........ (2,298)
Undistributed net investment income ............... 565
--------
TOTAL NET ASSETS -- 100.0% .......................... $260,782
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ............................. $ 13.94
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A ....................... $ 13.64
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($13.64 / 94.5%) ................ $ 14.43
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B ....................... $ 13.58
========
- -------------------
* Non-income producing security
REIT -- Real Estate Investment Trust
See Accompanying Notes
34
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Small Cap Value Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 ---------------------------------------------------
(Unaudited) 1998 1997
-------------------------------- ---------------------------- ------------------
Class I Class A Class B Class I Class A Class B/6 Class I Class A
------- -------- ------- -------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period.......................... $ 15.72 $ 15.47 $15.42 $ 15.15 $ 14.95 $15.28 $ 13.10 $12.94
-------- ------- ------ -------- ------- ------ -------- ------
Income From Investment Operations
Net investment income............. 0.06 0.04 0.06 0.06 0.01 0.00 0.09 0.08
Net gain/(loss) on securities
(realized and unrealized)........ (1.79) (1.83) (1.90) 2.87 2.84 0.14 2.90 2.83
-------- -------- ------ -------- ------- ------ -------- ------
Total from investment
operations.................. (1.73) (1.79) (1.84) 2.93 2.85 0.14 2.99 2.91
-------- -------- ------ -------- ------- ------ -------- ------
Less Distributions
Dividends from net
investment income................ (0.05) (0.04) (0.00) (0.07) (0.04) (0.00) (0.09) (0.05)
Dividends in excess of net
investment income................ (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions from net realized
capital gains.................... (0.00) (0.00) (0.00) (2.29) (2.29) (0.00) (0.85) (0.85)
-------- ------- ------ -------- ------- ------ -------- ------
Total distributions............ (0.05) (0.04) (0.00) (2.36) (2.33) (0.00) (0.94) (0.90)
-------- ------- ------ -------- ------- ------ -------- ------
Net asset value, end of period...... $ 13.94 $ 13.64 $13.58 $ 15.72 $ 15.47 $15.42 $ 15.15 $14.95
======== ======= ====== ======== ======= ====== ======== ======
Total Return........................ (11.04)%/7 (11.60)%/5,7 (11.93)%/5,7 19.82% 19.51%/5 19.12%/4,5 23.61% 23.26%/5
Ratios/Supplemental Data
Net assets, end of period
(in 000's)...................... $249,170 $11,345 $ 267 $284,295 $10,634 $ 61 $199,311 $4,929
Ratio of expenses to
average net assets............... 1.03%/4 1.28%/4 1.99%/4 0.98% 1.23% 1.92%/4 0.97% 1.22%
Ratio of net investment
income/(loss) to average
net assets....................... 0.82%/4 0.57%/4 (0.14)%/4 0.43% 0.19% (0.48)%/4 0.83% 0.57%
Portfolio turnover rate........... 45% 45% 45% 89% 89% 89% 64% 64%
</TABLE>
<TABLE>
<CAPTION>
For the Period
For the Year Ended May 31, Ended May 31,
1996 1995
------------------------- ---------------------
Class I Class A Class I3 Class A3
------- ------- -------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning
of period.......................... $ 11.38 $11.26 $ 10.00 $ 10.16
------- ------ ------- -------
Income From Investment Operations
Net investment income............. 0.08 0.06 0.10 0.07
Net gain/(loss) on securities
(realized and unrealized)........ 2.41 2.37 1.36 1.11
------- ------ ------- -------
Total from investment
operations.................. 2.49 2.43 1.46 1.18
------- ------ ------- -------
Less Distributions
Dividends from net
investment income................ (0.08) (0.06) (0.04) (0.04)
Dividends in excess of net
investment income................ (0.02) (0.02) (0.00) (0.00)
Distributions from net realized
capital gains.................... (0.67) (0.67) (0.04) (0.04)
------- ------ ------- -------
Total distributions............ (0.77) (0.75) (0.08) (0.08)
------- ------ ------- -------
Net asset value, end of period...... $13.10 $12.94 $11.38 $11.26
======= ====== ======= =======
Total Return........................ 22.64% 22.28%/5 17.42%/4 14.80%/4,5
Ratios/Supplemental Data
Net assets, end of period
(in 000's)...................... $99,294 $4,702 $50,993 $3,567
Ratio of expenses to
average net assets............... 1.05%/1 1.30%/2 1.01%/1,4 1.34%/2,4
Ratio of net investment
income/(loss) to average
net assets....................... 0.83%/1 0.58%/2 1.31%/1,4 1.09%/2,4
Portfolio turnover rate........... 106% 106% 69% 69%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class I for the year ended May 31, 1996, would
have been 1.06% and .82%, respectively. The operating expense ratio and the
net investment income ratio before fee waivers by the Investment Adviser,
Administrator and Custodian for Class I for the period ended May 31, 1995,
would have been 1.15% and 1.17%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class A for the year ended May 31, 1996 would
have been 1.32% and .56%, respectively. The operating expense ratio and the
net investment income ratio before fee waivers by the Investment Adviser,
Administrator and Custodian for Class A for the period ended May 31, 1995,
would have been 1.38% and 1.05%, respectively.
3 Class I and Class A commenced operations on July 26, 1994, and August 15,
1994, respectively.
4 Annualized.
5 Total return excludes sales charge.
6 Class B commenced operations on January 6, 1998.
7 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
35
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Growth Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- --------
COMMON STOCK -- 97.6%
Advertising -- 0.6%
Omnicom Group .................................... 135,000 $ 7,214
--------
Airlines -- 2.0%
AMR* ............................................. 100,200 6,607
Southwest Airlines ............................... 921,800 19,819
--------
26,426
--------
Apparel/Textiles -- 0.3%
Cintas ........................................... 74,000 4,075
--------
Banking -- 2.8%
Comerica ......................................... 80,950 5,221
Fleet Financial Group ............................ 60,800 2,535
MBNA ............................................. 267,500 6,069
Mellon Bank ...................................... 40,000 2,517
Northern Trust ................................... 62,200 5,027
State Street ..................................... 147,600 10,129
Wells Fargo ...................................... 134,000 4,824
--------
36,322
--------
Broadcasting & Publishing -- 2.2%
Time Warner ...................................... 273,000 28,870
--------
Cable Broadcasting -- 0.8%
Comcast .......................................... 80,000 3,882
Cox Communications* .............................. 20,000 1,054
Mediaone Group* .................................. 30,000 1,215
Tele-Communications, Class A* .................... 110,000 4,644
--------
10,795
--------
Chemicals -- 0.6%
Avery Dennison ................................... 35,000 1,678
E.I. duPont de Nemours ........................... 90,800 5,334
Monsanto ......................................... 30,000 1,359
--------
8,371
--------
Communications Equipment -- 5.1%
Cisco Systems* ................................... 452,000 34,084
Lucent Technologies .............................. 288,888 24,862
Tellabs* ......................................... 140,000 7,564
--------
66,510
--------
Computer Hardware -- 5.9%
Dell Computer* ................................... 284,600 17,298
EMC* ............................................. 210,000 15,225
Gateway 2000* .................................... 158,000 8,868
Hewlett Packard .................................. 40,000 2,510
International Business Machines .................. 200,600 33,099
--------
77,000
--------
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Computer Software -- 5.1%
BMC Software* .................................... 240,000 $12,248
Computer Associates International ................ 245,400 10,859
Microsoft* ....................................... 359,000 43,809
-------
66,916
-------
Diversified Manufaturing -- 2.7%
Tyco International ............................... 450,800 29,668
United Technologies .............................. 47,800 5,124
-------
34,792
-------
Drugs & Health Care -- 16.5%
Abbott Laboratories .............................. 306,720 14,723
American Home Products ........................... 165,000 8,786
Bristol-Myers Squibb ............................. 222,600 27,282
Eli Lilly ........................................ 200,000 17,938
Johnson & Johnson ................................ 261,300 21,231
Merck ............................................ 174,000 26,948
Mylan Laboratories ............................... 205,000 6,803
Pfizer ........................................... 299,000 33,376
Schering- Plough ................................. 289,000 30,742
Warner-Lambert ................................... 310,000 23,405
Watson Pharmaceuticals* .......................... 98,000 5,280
-------
216,514
-------
Electrical Equipment -- 3.1%
General Electric ................................. 447,800 40,526
-------
Environmental Services -- 1.1%
Waste Management ................................. 348,000 14,921
-------
Financial Services -- 3.6%
American Express ................................. 155,000 15,510
Fannie Mae ....................................... 215,000 15,641
Freddie Mac ...................................... 198,800 12,027
Charles Schwab ................................... 77,000 4,341
-------
47,519
-------
Food, Beverage & Tobacco -- 3.6%
Coca-Cola ........................................ 209,000 14,643
PepsiCo .......................................... 255,000 9,865
Philip Morris .................................... 394,400 22,062
-------
46,570
-------
Household Products -- 3.1%
Colgate Palmolive ................................ 80,000 6,850
Newell Company ................................... 92,800 4,106
Procter & Gamble ................................. 333,300 29,205
-------
40,161
-------
See Accompanying Notes
36
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Growth Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Insurance -- 3.4%
Allstate ......................................... 50,000 $ 2,038
American International Group ..................... 229,500 21,573
Providian Financial .............................. 10,000 918
SunAmerica ....................................... 112,000 8,876
Torchmark ........................................ 302,900 11,510
----------
44,915
----------
Medical & Medical Services -- 2.2%
HBO .............................................. 702,600 17,499
Health Management Associates,
Class A* ........................................ 32,000 694
Medtronic ........................................ 153,000 10,356
----------
28,549
----------
Miscellaneous Business Services -- 1.9%
Automatic Data Processing ........................ 178,600 13,752
Ceridian* ........................................ 146,600 9,538
Ecolab ........................................... 32,000 990
----------
24,280
----------
Motorcycle & Motor Scooter -- 0.8%
Harley-Davidson .................................. 256,300 10,717
----------
Office & Business Equipment -- 1.7%
Pitney Bowes ..................................... 207,000 11,592
Xerox ............................................ 102,000 10,965
----------
22,557
----------
Office Personnel -- 0.2%
Robert Half International* ....................... 47,500 2,233
----------
Oil Field Machinery & Equipment -- 1.1%
Halliburton ...................................... 135,000 3,966
Schlumberger ..................................... 218,000 9,742
----------
13,708
----------
Personal Care -- 0.7%
Gillette ......................................... 192,400 8,838
----------
Restaurants -- 0.1%
Brinker International* ........................... 62,600 1,592
----------
Retail Drug Stores -- 1.9%
CVS .............................................. 302,000 14,911
Walgreen ......................................... 177,000 9,503
----------
24,414
----------
Retail Food Chains -- 5.1%
Albertson's ...................................... 150,000 8,559
Costco* .......................................... 290,600 18,244
Kroger* .......................................... 209,100 11,095
Safeway* ......................................... 534,000 28,202
----------
66,100
----------
Number Value
of Shares (000)
-------- -----
COMMON STOCK -- Continued
Retail Stores -- 8.3%
Dayton Hudson .................................... 250,000 $ 11,250
Gap .............................................. 173,000 12,726
Home Depot ....................................... 495,698 24,661
Kohls* ........................................... 100,000 4,919
Lowe's ........................................... 208,000 8,788
Tandy ............................................ 163,400 7,363
TJX .............................................. 84,000 2,153
Wal-Mart ......................................... 480,500 36,188
----------
108,048
----------
Savings & Loan Associations -- 0.4%
Dime Bancorp ..................................... 80,000 2,125
Golden West Financial ............................ 34,100 3,229
----------
5,354
----------
Semi-Conductors/Instruments -- 1.0%
Intel ............................................ 122,700 13,202
----------
Specialty Construction -- 0.4%
Masco ............................................ 165,600 4,782
----------
Telephones & Telecommunication -- 6.5%
Airtouch Communications* ......................... 316,400 18,094
Ameritech ........................................ 150,000 8,119
BellSouth ........................................ 150,000 13,088
MCI WorldCom* .................................... 410,000 24,177
SBC Communications ............................... 442,000 21,188
----------
84,666
----------
Toys -- 1.4%
Mattel ........................................... 515,000 17,800
----------
Travel -- 0.5%
Carnival, Class A ................................ 200,000 6,900
----------
Wholesale -- 0.9%
Cardinal Health .................................. 165,000 11,323
----------
TOTAL COMMON STOCK
(COST $1,061,029) ........................................... 1,273,480
----------
CASH EQUIVALENT -- 2.5%
Fidelity Domestic Money
Market Fund .................................... 32,540 32,540
----------
TOTAL CASH EQUIVALENT
(Cost $32,540) .............................................. 32,540
----------
TOTAL INVESTMENTS -- 100.1%
(Cost $1,093,569) ........................................... $1,306,020
==========
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) ............................................... (1,402)
----------
See Accompanying Notes
37
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Growth Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
52,049,333 outstanding shares
of beneficial interest ...................................... $966,292
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
4,326,619 outstanding shares
of beneficial interest ...................................... 84,846
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
12,631 outstanding shares of
beneficial interest ......................................... 261
Accumulated net realized gain
on investments .............................................. 41,353
Net unrealized appreciation on investments ................... 212,451
Overdistributed net investment income ........................ (585)
----------
TOTAL NET ASSETS -- 100.0% ................................... $1,304,618
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ........................................ $ 23.14
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $ 23.11
==========
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($23.11 divide 94.5%) .......................................... $ 24.46
==========
NET ASSET VALUE AND
OFFERING PRICE PER
SHARE -- CLASS B ............................................ $ 22.99
==========
- ---------------
* Non-income producing security
See Accompanying Notes
38
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Equity Growth Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 ------------------------------------------------
(Unaudited) 1998 1997
----------------------------------- ---------------------------- ----------------
Class I Class A Class B/5 Class I Class A Class B/5 Class I Class A
------- ------- --------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period...................... $ 21.35 $ 21.35 $21.28 $ 18.63 $ 18.67 $19.44 $ 18.02 $18.05
---------- ------- ------ -------- ------- ------ -------- ------
Income From Investment
Operations
Net investment
income/(loss)................. 0.00 (0.03) (0.08) 0.00 (0.04) (0.24) 0.09 0.05
Net gain on securities
(realized and unrealized)..... 1.79 1.79 1.79 5.00 4.99 2.08 4.66 4.66
---------- ------- ------ -------- ------- ------ -------- ------
Total from investment
operations............... 1.79 1.76 1.69 5.00 4.95 1.84 4.75 4.71
---------- ------- ------ -------- ------- ------ -------- ------
Less Distributions
Dividends from net
investment income............. (0.00) (0.00) (0.00) (0.01) (0.00) (0.00) (0.09) (0.05)
Dividends in excess of net
investment income............. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.02) (0.01)
Distributions from net realized
capital gains................. (0.00) (0.00) (0.00) (2.27) (2.27) (0.00) (4.03) (4.03)
Distributions in excess of net
realized capital gains........ (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
---------- ------- ------ -------- ------- ------ -------- ------
Total distributions......... (0.00) (0.00) (0.00) (2.28) (2.27) (0.00) (4.14) (4.09)
---------- ------- ------ -------- ------- ------ -------- ------
Net asset value, end of period... $ 23.14 $ 23.11 $22.99 $ 21.35 $ 21.35 $21.28 $ 18.63 $18.67
========== ======= ====== ======== ======= ====== ======== ======
Total Return..................... 8.38%/6 8.24%/3,6 8.04%/3,6 28.65% 28.32%/3 27.90%/3,4 29.57% 29.24%/3
Ratios/Supplemental Data
Net assets, end of period
(in 000's)..................... $1,204,334 $99,994 $ 290 $352,413 $12,380 $ 24 $255,594 $6,931
Ratio of expenses to
average net assets............ 0.91%/4 1.15%/4 1.85%/4 0.98% 1.23% 1.92%/4 0.97% 1.22%
Ratio of net investment
income/(loss) to average
net assets.................... (0.07)%/4 (0.32)%/4 (1.02)%/4 (0.01)% (0.26)% (0.92)%/4 0.49% 0.25%
Portfolio turnover rate........ 23% 23% 23% 260% 260% 260% 197% 197%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
-------------------------------------------------------------
1996 1995 1994
----------------- ----------------- -------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period...................... $ 14.77 $14.79 $ 13.66 $13.68 $ 13.78 $13.80
------- ------ ------- ------ ------- -------
Income From Investment
Operations
Net investment
income/(loss)................. 0.14 0.10 0.21 0.18 0.18 0.15
Net gain on securities
(realized and unrealized)..... 3.46 3.47 1.21 1.21 0.01 0.00
------- ------ ------- ------ ------- -------
Total from investment
operations............... 3.60 3.57 1.42 1.39 0.19 0.15
------- ------ ------- ------ ------- -------
Less Distributions
Dividends from net
investment income............. (0.14) (0.10) (0.20) (0.17) (0.18) (0.15)
Dividends in excess of net
investment income............. (0.02) (0.02) (0.00) (0.00) (0.01) (0.00)
Distributions from net realized
capital gains................. (0.19) (0.19) (0.00) (0.00) (0.11) (0.11)
Distributions in excess of net
realized capital gains........ (0.00) (0.00) (0.11) (0.11) (0.01) (0.01)
------- ------ ------- ------ ------- -------
Total distributions......... (0.35) (0.31) (0.31) (0.28) (0.31) (0.27)
------- ------ ------- ------ ------- -------
Net asset value, end of period... $ 18.02 $18.05 $14.77 $14.79 $ 13.66 $ 13.68
======= ====== ======= ====== ======= =======
Total Return..................... 24.61% 24.34%/3 10.62% 10.35%/3 1.41% 1.12%/3
Ratios/Supplemental Data
Net assets, end of period
(in 000's)..................... $166,671 $6,013 $119,634 $5,974 $90,446 $7,521
Ratio of expenses to
average net assets............ 1.01% 11.26%/2 1.01%/1 1.27%/2 1.07% 1.32%
Ratio of net investment
income/(loss) to average
net assets.................... 0.85%/1 0.60%/2 1.53%/1 1.23%/2 1.33% 1.08%
Portfolio turnover rate........ 74% 74% 17% 17% 15% 15%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class I for the years ended May 31, 1996, and
1995 would have been 1.03% and .83%, and 1.02%, and 1.51%, respectively. The
operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the year May 31, 1993,
would have been 1.01% and 1.46%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class A for the years ended May 31, 1996, and
1995 would have been 1.28% and .58%, and 1.28%, and 1.22%, respectively. The
operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the year May 31, 1993
would have been 1.26% and 1.21%, respectively.
3 Total return excludes sales charge.
4 Annualized.
5 Class B commenced operations on January 6, 1998.
6 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
39
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Managed Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- 96.6%
Air Transportation -- 0.1%
Southwest Airlines ............................... 12,000 $ 258
--------
Banks -- 7.9%
Bankamerica ...................................... 6,000 391
First Union ...................................... 20,000 1,215
Northern Trust ................................... 16,000 1,292
State Street ..................................... 89,000 6,108
SunTrust Banks ................................... 10,000 698
Wachovia ......................................... 35,600 3,108
Wells Fargo ...................................... 148,000 5,328
--------
18,140
--------
Chemicals -- 0.4%
Air Products & Chemicals ......................... 26,000 991
--------
Communications Equipment -- 2.6%
Cisco Systems* ................................... 26,475 1,996
Lucent Technologies .............................. 30,000 2,582
Northern Telecom ................................. 16,500 770
Philips Electronics .............................. 11,000 696
--------
6,044
--------
Computer Hardware -- 2.8%
Compaq Computer .................................. 32,000 1,040
Dell Computer* ................................... 10,000 608
Hewlett Packard .................................. 74,400 4,669
--------
6,317
--------
Computer Software -- 1.6%
Microsoft* ....................................... 30,300 3,698
--------
Drugs & Health Care -- 22.5%
Abbott Laboratories .............................. 202,000 9,696
American Home Products ........................... 10,000 532
Bristol-Myers Squibb ............................. 78,240 9,589
Eli Lilly ........................................ 13,000 1,166
Johnson & Johnson ................................ 17,500 1,422
Merck ............................................ 48,000 7,434
Pfizer ........................................... 94,000 10,493
Schering- Plough ................................. 106,400 11,318
--------
51,650
--------
Number Value
of Shares (000)
----------- -----
COMMON STOCK -- Continued
Electrical Equipment -- 5.9%
Emerson Electric ................................. 70,200 $ 4,563
General Electric ................................. 97,900 8,860
--------
13,423
--------
Entertainment -- 2.0%
Walt Disney ...................................... 139,500 4,490
--------
Financial Services -- 0.4%
Fannie Mae ....................................... 13,500 982
--------
Food, Beverage & Tobacco -- 6.6%
Anheuser Busch ................................... 5,000 303
Coca-Cola ........................................ 51,800 3,629
Dean Foods ....................................... 2,000 91
PepsiCo .......................................... 226,500 8,763
Philip Morris .................................... 43,000 2,405
--------
15,191
--------
Household Products -- 1.9%
Procter & Gamble ................................. 49,000 4,294
--------
Information Retrieval Services -- 0.5%
America Online* .................................. 14,000 1,226
--------
Insurance -- 6.5%
American International Group ..................... 102,431 9,629
General Re ....................................... 14,000 3,269
The Chubb Corporation ............................ 30,000 2,102
--------
15,000
--------
Leasing & Renting -- 3.7%
Pitney Bowes ..................................... 153,000 8,568
--------
Machinery -- 0.1%
Caterpillar ...................................... 2,000 99
--------
Medical & Medical Services -- 0.2%
Medtronic ........................................ 7,200 487
--------
See Accompanying Notes
40
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Managed Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Miscellaneous Business Services -- 3.6%
Automatic Data Processing ........................ 94,000 $ 7,238
Sun Microsystems* ................................ 14,000 1,037
--------
8,275
--------
Miscellaneous Manufacturing -- 1.0%
Hillenbrand Industries ........................... 3,000 170
Illinois Tool Works .............................. 12,000 763
Minnesota Mining &
Manufacturing ................................... 17,600 1,413
--------
2,346
--------
Motorcycle & Motor Scooter -- 2.1%
Harley-Davidson .................................. 117,600 4,917
--------
Oil Machinery & Equipment -- 1.1%
Schlumberger ..................................... 56,000 2,503
--------
Personal Care -- 0.1%
Gillette ......................................... 5,000 230
--------
Petroleum Refining -- 5.0%
Amoco ............................................ 66,400 3,913
Chevron .......................................... 2,750 230
Exxon ............................................ 52,000 3,903
Mobil ............................................ 10,000 862
Royal Dutch Petroleum ............................ 52,400 2,463
--------
11,371
--------
Printing & Publishing -- 0.1%
Tribune .......................................... 3,000 192
--------
Restaurants -- 1.0%
McDonald's ....................................... 32,000 2,242
--------
Number of Value
Shares/PAR (000) (000)
---------------- -----
COMMON STOCK -- Continued
Retail -- 6.7%
Dayton Hudson .................................... 13,300 $ 599
Home Depot ....................................... 194,000 9,652
Nordstrom ........................................ 22,000 820
Staples* ......................................... 30,000 1,048
Wal-Mart Stores .................................. 44,500 3,351
--------
15,470
--------
Semi-Conductors/Instruments -- 4.2%
Intel ............................................ 86,000 9,253
Texas Instruments ................................ 6,000 458
--------
9,711
--------
Steel & Steel Works -- 0.1%
Nucor ............................................ 3,000 126
--------
Telephones & Telecommunication -- 5.9%
Ameritech ........................................ 27,200 1,472
BellSouth ........................................ 44,500 3,883
GTE .............................................. 5,500 341
MCI WorldCom* .................................... 46,750 2,758
Motorola ......................................... 30,000 1,860
SBC Communications ............................... 24,000 1,151
US West .......................................... 24,800 1,544
Vodafone Group ................................... 4,000 591
--------
13,600
--------
TOTAL COMMON STOCK
(Cost $55,338) .............................................. 221,841
--------
CASH EQUIVALENT -- 3.4%
Fidelity Domestic Money
Market Fund .................................... 7,910 7,910
--------
TOTAL CASH EQUIVALENT
(Cost $7,910) ............................................... 7,910
--------
TOTAL INVESTMENTS -- 100.0%
(Cost $63,248) .............................................. $229,751
========
OTHER ASSETS AND LIABILITIES,
Net -- 0.0% ................................................. (47)
--------
See Accompanying Notes
41
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Managed Equity Fund
November 30, 1998
(Unaudited)
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
20,331,439 outstanding shares
of beneficial interest ...................................... $ 60,556
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
152,086 outstanding shares of
beneficial interest ......................................... 1,551
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
80,406 outstanding shares of
beneficial interest ......................................... 850
Accumulated net realized gain
on investments .............................................. 223
Net unrealized appreciation on investments ................... 166,503
Undistributed net investment income .......................... 21
--------
TOTAL NET ASSETS -- 100.0% ..................................... $229,704
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................................ $11.17
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $11.20
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($11.20 divide 94.5%) ...................... $11.85
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................................. $11.20
========
- ----------
* Non-income producing security
See Accompanying Notes
42
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Tax Managed Equity Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1998 For the Period
(Unaudited) Ended May 31, 1998
------------------------------------ ------------------------
Class I Class A Class B Class I/5 Class A/6
------- ------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 9.93 $ 9.93 $ 9.93 $ 10.00 $ 10.10
-------- ------ ------- -------- -------
Income From Investment Operations
Net investment income .............................. 0.03 0.03 0.01 0.00 0.00
Net gain/(loss) loss on securities
(realized and unrealized) ......................... 1.25 1.27 1.27 (0.07) (0.17)
-------- ------ ------- -------- -------
Total from investment operations ................ 1.28 1.30 1.28 (0.07) (0.17)
-------- ------ ------- -------- -------
Less Distributions
Net investment income ........................... (0.04) (0.03) (0.01) (0.00) (0.00)
-------- ------ ------- -------- -------
Total distributions ............................. (0.04) (0.03) (0.01) (0.00) (0.00)
-------- ------ ------- -------- -------
Net asset value, end of period ....................... $ 11.17 $11.20 $ 11.20 $ 9.93 $ 9.93
======== ====== ======= ======== =======
Total Return ......................................... 12.92%/9 13.18%/4,9 12.92%/4,9 (4.81%)/8 (23.63%)/4,8
Ratios/Supplemental Data
Net assets, end of period (in 000's) ............... $227,101 $1,704 $ 899 $158,867 $ 10
Ratio of expenses to average net assets ............ 0.80%/1,8 1.05%/2,8 1.76%/3,8 0.29%/1,8 0.54%/2,8
Ratio of net investment income to average net
assets............................................ 0.47%/1,8 (0.12)%/2,8 (1.50)%/3,8 0.91%/1,8 0.63%/2,8
Portfolio turnover rate ............................ 3% 3% 3% 0% 0
<CAPTION>
For the Period
Ended
May 31, 1998
------------
Class B/7
---------
<S> <C>
Net asset value, beginning of period ................. $ 10.21
---------
Income From Investment Operations
Net investment income .............................. 0.00
Net gain/(loss) loss on securities
(realized and unrealized) ......................... (0.28)
---------
Total from investment operations ................ (0.28)
---------
Less Distributions
Net investment income ........................... (0.00)
---------
Total distributions .............................
---------
Net asset value, end of period ....................... $ 9.93
=========
Total Return ......................................... (32.24%)/4,8
Ratios/Supplemental Data
Net assets, end of period (in 000's) ............... $ 85
Ratio of expenses to average net assets ............ 1.23%/3,8
Ratio of net investment income to average net
assets............................................ 0.43%/3,8
Portfolio turnover rate ............................ 0%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class I for the periods ended November
30, 1998 and May 31, 1998 would have been 0.82% and 0.45%, 1.02% and 0.18%
respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class A for the periods ended November
30, 1998 and May 31, 1998 would have been 0.92% and 0.01%, 1.24% and (0.07)%,
respectively.
3 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class B for the periods ended November
30, 1998 and May 31, 1998 would have been 2.68% and (1.42)%, 1.98% and 1.18%,
respectively.
4 Total return excludes sales charge.
5 Class I commenced operations on April 9, 1998.
6 Class A commenced operations on May 11, 1998.
7 Class B commenced operations on May 4, 1998.
8 Annualized.
9 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
43
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 96.2%
Banking -- 5.2%
Amsouth Bancorporation ........................... 31,290 $ 1,322
BancOne .......................................... 22,110 1,134
Chase Manhattan .................................. 24,160 1,533
Comerica ......................................... 15,490 999
Commerce Bancshares .............................. 36,400 1,616
--------
6,604
--------
Building & Building Supplies -- 1.2%
Sherwin Williams ................................. 53,080 1,506
--------
Business Services -- 4.8%
Automatic Data Processing ........................ 24,760 1,906
Cintas ........................................... 37,500 2,065
Computer Sciences* ............................... 37,300 2,131
--------
6,102
--------
Chemicals -- 3.3%
E.I. duPont de Nemours ........................... 28,470 1,673
Eastman Chemical ................................. 19,760 1,145
Praxair .......................................... 35,540 1,357
--------
4,175
--------
Computers -- 2.7%
International Business
Machines ........................................ 20,450 3,374
--------
Consumer Non-Durables -- 1.7%
Procter & Gamble ................................. 24,080 2,110
--------
Diversified -- 2.4%
General Electric ................................. 34,130 3,089
--------
Drugs & Health Care -- 2.4%
Eli Lilly ........................................ 34,270 3,074
--------
Electric Power -- 4.1%
Allegheny Energy ................................. 38,050 1,287
Emerson Electric ................................. 36,222 2,354
Hubbell .......................................... 37,276 1,503
--------
5,144
--------
Financial Services -- 4.7%
Associates First Capital ......................... 23,100 1,799
Citigroup ........................................ 30,450 1,528
Fannie Mae ....................................... 36,650 2,666
--------
5,993
--------
Food Retailing -- 1.3%
Safeway* ......................................... 31,480 1,663
--------
Health Care -- 1.4%
Tenet Healthcare* ................................ 60,500 1,789
--------
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Insurance -- 7.8%
Aflac ............................................ 57,520 $ 2,121
American General ................................. 26,850 1,891
American International Group ..................... 39,095 3,675
MGIC Investment .................................. 28,510 1,253
PMI Group ........................................ 16,810 919
--------
9,859
--------
Medical & Medical Services -- 1.4%
Guidant .......................................... 21,030 1,805
--------
Metals & Mining -- 1.2%
Aluminum Company of America ...................... 21,110 1,565
--------
Miscellaneous Business Services -- 0.8%
Ceridian ......................................... 16,370 1,065
--------
Office Equipment -- 1.1%
Pitney Bowes ..................................... 23,700 1,327
--------
Oil & Gas -- 7.6%
Amoco ............................................ 3,030 179
Exxon ............................................ 41,460 3,112
Mobil ............................................ 36,820 3,173
Texaco ........................................... 33,420 1,924
USX Marathon Group ............................... 43,690 1,240
--------
9,628
--------
Paper & Forest Products -- 3.0%
Champion International ........................... 25,240 1,049
Georgia Pacific .................................. 17,920 1,017
Willamette Industries ............................ 46,530 1,626
--------
3,692
--------
Petroleum & Fuel Products -- 1.2%
Schlumberger ..................................... 32,780 1,465
--------
Pharmaceutical -- 8.3%
American Home Products ........................... 8,130 433
Bristol-Myers Squibb ............................. 27,300 3,346
Merck ............................................ 26,430 4,093
Schering-Plough .................................. 24,500 2,606
--------
10,478
--------
Photographic Equipment & Supplies -- 1.8%
Xerox ............................................ 21,490 2,310
--------
Retail -- 2.1%
CVS .............................................. 52,430 2,589
--------
Retail Merchandising -- 1.8%
Home Depot ....................................... 2,380 118
Wal-Mart Stores .................................. 27,880 2,100
--------
2,218
--------
See Accompanying Notes
44
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Semi-Conductors/Instruments -- 1.6%
Xilinx* .......................................... 39,500 $ 2,006
--------
Specialty Chemicals -- 1.5%
Sigma Aldrich .................................... 60,490 1,945
--------
Surgical Appliances -- 0.9%
Sofamor Danek Group* ............................. 10,510 1,175
--------
Technology -- 14.2%
Altera* .......................................... 41,850 2,055
Applied Materials* ............................... 52,080 2,020
Cisco Systems* ................................... 34,552 2,605
Intel ............................................ 23,440 2,522
Linear Technology ................................ 24,280 1,700
Maxim Integrated Products* ....................... 47,500 1,866
Microsoft* ....................................... 28,200 3,441
Teradyne* ........................................ 54,920 1,761
--------
17,970
--------
Telecommunications -- 2.1%
BellSouth ........................................ 29,660 2,588
--------
Tobacco -- 2.6%
Philip Morris .................................... 58,520 3,273
--------
TOTAL COMMON STOCK
(Cost $102,699) ............................................. 121,581
--------
CONVERTIBLE BONDS -- 3.6%
Automatic Data Processing
0.000%...................... 02/20/12 $1,910 1,912
Home Depot
3.250%...................... 10/01/01 1,200 2,676
--------
TOTAL CONVERTIBLE BONDS
(Cost $1,273) ............................................... 4,588
--------
CASH EQUIVALENT -- 0.3%
Goldman Financial Square Premium
Money Market Fund .............................. 399 399
--------
TOTAL CASH EQUIVALENT
(Cost $399) ................................................. 399
--------
TOTAL INVESTMENTS -- 100.1%
(Cost $104,371) ............................................. $126,568
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.1%) ............................................... (94)
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
9,887,100 outstanding shares
of beneficial interest ...................................... $ 98,751
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
46,737 outstanding shares of
beneficial interest ......................................... 513
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
23,704 outstanding shares of
beneficial interest ......................................... 287
Accumulated net realized gain
on investments .............................................. 4,773
Net unrealized appreciation
on investments .............................................. 22,197
Overdistributed net investment income ........................ (47)
--------
TOTAL NET ASSETS -- 100.0% ..................................... $126,474
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................................ $12.70
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $12.68
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($12.68 divide 94.5%) ....................................... $13.42
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................................. $12.65
========
- ----------
* Non-income producing security
See Accompanying Notes
45
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Core Equity Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1998 For the Period
(Unaudited) Ended May 31, 1998
----------------------------------- -----------------------
Class I Class A Class B Class I/6 Class A/6
------- ------- ------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period..................... $ 11.35 $11.34 $11.33 $ 10.00 $10.00
-------- ------ ------ -------- ------
Income From Investment Operations
Net investment income/(loss)........................... (0.01) (0.01) (0.01) 0.05 0.04
Net gain on securities (realized and unrealized)....... 1.37 1.35 1.33 1.35 1.34
-------- ------ ------ -------- ------
Total from investment operations.................... 1.36 1.34 1.32 1.40 1.38
-------- ------ ------ -------- ------
Less Distributions
Dividends from net investment income................... (0.01) (0.00) (0.00) (0.05) (0.04)
-------- ------ ------ -------- ------
Total distributions................................. (0.01) (0.00) (0.00) (0.05) (0.04)
-------- ------ ------ -------- ------
Net asset value, end of period........................... $ 12.70 $12.68 $12.65 $ 11.35 $11.34
======== ====== ====== ======== ======
Total Return............................................. 11.94%/5 11.82%/4,5 11.65%/4,5 14.03%5 13.85%/4,5
Ratios/Supplemental Data
Net assets, end of period (in 000's)................... $125,582 $ 592 $ 300 $110,504 $ 408
Ratio of expenses to average net assets................ 0.96%/8 1.21%/8 1.92%/8 0.89%/1,8 1.14%/2,8
Ratio of net investment income/(loss) to average net
assets............................................... (0.04)%/8 (0.31)%/8 (1.10)%/8 0.61%/1,8 0.14%/2,8
Portfolio turnover rate................................ 24% 24% 24% 60% 60%
<CAPTION>
For the Period
Ended May 31, 1998
------------------
Class B/7
---------
<S> <C>
Net asset value, beginning of period....................... $10.25
------
Income From Investment Operations
Net investment income/(loss)............................. 0.00
Net gain on securities (realized and unrealized)......... 1.08
------
Total from investment operations...................... 1.08
------
Less Distributions
Dividends from net investment income..................... (0.00)
------
Total distributions................................... (0.00)
------
Net asset value, end of period............................. $11.33
======
Total Return............................................... 10.54%/4,5
Ratios/Supplemental Data
Net assets, end of period (in 000's)..................... $ 2
Ratio of expenses to average net assets.................. 1.83%/3,8
Ratio of net investment income/(loss) to average net
assets................................................. (0.51)%/3,8
Portfolio turnover rate.................................. 60%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser and Administrator for Class I for the period
ended May 31, 1998, would have been 1.06% and 0.44%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser and Administrator for Class A for the period
ended May 31, 1998, would have been 1.30% and 0.04%, respectively.
3 The operating expense ratio and the net investment income/(loss) ratio before
fee waivers by the Investment Adviser and Administrator for Class B for the
period ended May 31, 1998, would have been 2.00% and (0.50)%, respectively.
4 Total return excludes sales charge.
5 Returns are for the period indicated and have not been annualized.
6 Class I and Class A both commenced operations on August 1, 1997.
7 Class B commenced operations on January 6, 1998.
8 Annualized.
See Accompanying Notes
46
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Index Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 96.2%
Abrasive Asbestos & Misc. Nonmetallic
Mineral Products -- 0.3%
Minnesota Mining &
Manufacturing ................................... 6,054 $ 486
--------
Aerospace & Defense -- 0.4%
Lockheed Martin .................................. 2,934 304
Raytheon, Cl B ................................... 5,078 281
--------
585
--------
Agriculture -- 0.1%
Pioneer Hi Bred International .................... 3,621 108
--------
Air Transportation -- 0.4%
AMR .............................................. 2,733 180
Delta Air Lines .................................. 2,271 122
FDX* ............................................. 2,210 143
Southwest Airlines ............................... 5,032 108
US Airways* ...................................... 1,407 73
--------
626
--------
Aircraft -- 1.2%
Allied-Signal .................................... 8,413 370
Boeing ........................................... 15,149 615
General Dynamics ................................. 1,897 110
Northrop ......................................... 1,031 84
Textron .......................................... 2,456 191
United Technologies .............................. 3,418 366
--------
1,736
--------
Apparel/Textiles -- 0.1%
Fruit of the Loom* ............................... 1,080 16
Liz Claiborne .................................... 990 34
Russell .......................................... 543 13
Springs Industries, Cl A ......................... 277 11
V F .............................................. 1,821 89
--------
163
--------
Asset Backed-Mortgage -- 0.2%
Household International .......................... 7,380 289
--------
Auto -- 1.5%
Dana ............................................. 2,471 96
Eaton ............................................ 1,070 73
Ford Motor ....................................... 18,161 1,003
General Motors ................................... 9,806 686
Genuine Parts .................................... 2,679 88
Navistar International* .......................... 1,006 26
Paccar ........................................... 1,171 53
TRW .............................................. 1,828 101
--------
2,126
--------
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Banks -- 7.3%
Bank of Boston ................................... 4,410 $ 184
Bank of New York ................................. 11,201 384
Bank One ......................................... 17,552 901
BankAmerica ...................................... 26,041 1,698
Bankers Trust New York ........................... 1,441 125
BB&T ............................................. 4,290 158
Chase Manhattan .................................. 12,837 814
Comerica ......................................... 2,330 150
Fifth Third Bancorp .............................. 4,015 267
First Union ...................................... 14,524 882
Fleet Financial Group ............................ 8,511 355
Golden West Financial ............................ 863 82
Huntington Bancshares ............................ 3,173 94
J.P. Morgan ...................................... 2,647 283
Keycorp .......................................... 6,593 202
MBNA ............................................. 11,268 256
Mellon Bank ...................................... 3,907 246
Mercantile Bancorporation ........................ 2,278 100
National City .................................... 4,942 332
Northern Trust ................................... 1,668 135
PNC Bank ......................................... 4,519 233
Regions Financial ................................ 3,209 124
Republic New York ................................ 1,617 76
State Street ..................................... 2,421 166
Summit Bancorp ................................... 2,605 109
SunTrust Banks ................................... 3,131 219
Synovus Financial ................................ 3,947 87
U.S. Bancorp ..................................... 11,135 410
Union Planters ................................... 1,905 91
Wachovia ......................................... 3,097 270
Washington Mutual ................................ 8,886 345
Wells Fargo ...................................... 24,239 873
--------
10,651
--------
Beauty Products -- 2.2%
Avon Products .................................... 3,947 160
Colgate Palmolive ................................ 4,433 380
Gillette ......................................... 16,830 773
International Flavors & Fragrances ............... 1,606 67
Procter & Gamble ................................. 20,099 1,761
--------
3,141
--------
Broadcasting, Newspapers & Advertising -- 1.0%
CBS .............................................. 10,731 320
Clear Channel Communications* .................... 3,722 174
Interpublic Group of Companies ................... 2,041 140
Mediaone Group* .................................. 9,134 370
Omnicom Group .................................... 2,544 136
Tele-Communications, Class A* .................... 7,844 331
--------
1,471
--------
See Accompanying Notes
47
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Index Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Building & Building Supplies -- 0.0%
McDermott International .......................... 887 $ 24
--------
Building & Construction -- 0.0%
Centex ........................................... 894 32
Fluor ............................................ 1,184 51
--------
83
--------
Cable and Other Pay Television -- 0.2%
Comcast, Cl A Special ............................ 5,534 269
--------
Canned Specialties -- 0.3%
Campbell Soup .................................... 6,731 385
--------
Chemical Preparations -- 0.0%
Morton International ............................. 1,954 58
--------
Chemicals -- 1.8%
Air Products & Chemicals ......................... 3,469 132
Avery Dennison ................................... 1,754 84
B.F. Goodrich .................................... 1,109 42
Dow Chemical ..................................... 3,359 327
E.I. duPont de Nemours ........................... 16,962 997
Eastman Chemical ................................. 1,188 69
FMC* ............................................. 517 30
Great Lakes Chemical ............................. 885 35
Hercules ......................................... 1,417 47
Monsanto ......................................... 9,007 408
Nalco Chemical ................................... 988 33
PPG Industries ................................... 2,653 162
Praxair .......................................... 2,371 91
Rohm & Haas ...................................... 2,672 93
Union Carbide .................................... 2,028 91
W.R. Grace & Company* ............................ 1,138 19
--------
2,660
--------
Combination Utilities -- 0.2%
Entergy .......................................... 3,696 108
PG&E ............................................. 5,725 177
--------
285
--------
Communications Equipment -- 1.8%
Andrew* .......................................... 1,291 21
Ascend Communications* ........................... 3,236 182
General Instrument* .............................. 2,261 64
Lucent Technologies .............................. 19,709 1,696
Northern Telecom ................................. 9,175 428
Scientific-Atlanta ............................... 1,123 22
Tellabs* ......................................... 2,904 157
--------
2,570
--------
Computer Communications Equipment -- 0.1%
3Com* ............................................ 5,379 208
--------
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Computers -- 5.5%
Apple Computer* .................................. 2,018 $ 65
Cisco Systems* ................................... 23,305 1,757
Compaq Computer .................................. 25,046 814
Data General* .................................... 742 13
Dell Computer* ................................... 18,974 1,153
EMC* ............................................. 7,487 543
Gateway 2000* .................................... 2,335 131
Hewlett Packard .................................. 15,580 978
International Business Machines .................. 13,985 2,308
Seagate Technology* .............................. 3,643 107
Silicon Graphics* ................................ 2,830 35
Unisys* .......................................... 3,812 109
--------
8,013
--------
Computer Software -- 3.1%
Microsoft* ....................................... 36,932 4,507
--------
Concrete & Mineral Products -- 0.0%
Armstrong World Industries ....................... 600 40
Owens Corning .................................... 809 30
--------
70
--------
Containers & Packaging -- 0.1%
Ball ............................................. 457 20
Crown Cork & Seal ................................ 1,865 63
Owens-Illinois* .................................. 2,329 75
--------
158
--------
Cutlery, Handtools & General Hardware -- 0.1%
Fortune Brands ................................... 2,590 88
Stanley Works .................................... 1,330 41
--------
129
--------
Drugs & Health Care -- 10.2%
Abbott Laboratories .............................. 23,080 1,108
Alza* ............................................ 1,297 68
American Home Products ........................... 19,722 1,050
Amgen* ........................................... 3,806 286
Bristol-Myers Squibb ............................. 14,909 1,827
Eli Lilly ........................................ 16,508 1,481
Johnson & Johnson ................................ 20,158 1,638
Merck ............................................ 17,850 2,765
Millipore ........................................ 658 19
Pfizer ........................................... 19,584 2,186
Pharmacia & Upjohn ............................... 7,615 396
Schering - Plough ................................ 11,002 1,170
Sigma Aldrich .................................... 1,508 48
Warner-Lambert ................................... 12,304 929
--------
14,971
--------
Electric Company -- 0.0%
GPU .............................................. 1,917 84
--------
See Accompanying Notes
48
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Index Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Electrical Services -- 2.1%
AES* ............................................. 2,636 $ 121
Ameren ........................................... 2,057 85
American Electric Power .......................... 2,861 133
Baltimore Gas & Electric ......................... 2,228 68
Carolina Power & Light ........................... 2,268 105
Central & South West ............................. 3,184 88
Cinergy .......................................... 2,376 82
Consolidated Edison Company
of New York ..................................... 3,505 178
Dominion Resources ............................... 2,946 136
DTE Energy ....................................... 2,174 95
Duke Energy ...................................... 5,412 339
Edison International ............................. 5,301 146
FirstEnergy ...................................... 3,554 110
FPL Group ........................................ 2,717 166
Houston Industries ............................... 4,438 140
New Century Energies ............................. 1,671 80
Northern States Power ............................ 2,269 62
P P & L Resources ................................ 2,267 62
PacifiCorp ....................................... 4,455 84
Public Service Enterprise Group .................. 3,477 136
Sempra Energy* ................................... 3,609 90
Southern ......................................... 10,459 309
Texas Utilities .................................. 4,189 187
Unicom ........................................... 3,253 123
--------
3,125
--------
Entertainment -- 0.7%
King World Productions* .......................... 1,097 30
Mirage Resorts* .................................. 2,694 40
Walt Disney ...................................... 30,707 988
--------
1,058
--------
Environmental Services -- 0.3%
Browning-Ferris Industries ....................... 2,605 77
Laidlaw .......................................... 4,943 49
Waste Management* ................................ 8,570 367
--------
493
--------
Financial Services -- 3.3%
American Express ................................. 6,840 684
Associates First Capital ......................... 5,190 404
Bear Stearns ..................................... 1,705 72
Capital One Financial ............................ 991 109
Charles Schwab ................................... 4,001 226
Countrywide Credit
Industries ...................................... 1,664 82
Equifax .......................................... 2,218 92
Fannie Mae ....................................... 15,542 1,131
Franklin Resources ............................... 3,793 162
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Financial Services -- Continued
Freddie Mac ...................................... 10,172 $ 615
Lehman Brothers Holdings ......................... 1,773 89
Merrill Lynch .................................... 5,220 391
Morgan Stanley, Dean Witter,
Discover ........................................ 8,778 612
SLM Holding ...................................... 2,510 110
--------
4,779
--------
Food & Beverage -- 4.5%
Adolph Coors, Cl B ............................... 544 27
Anheuser Busch ................................... 7,227 438
Archer-Daniels-Midland ........................... 8,979 165
Bestfoods ........................................ 4,308 250
Brown-Forman, Cl B ............................... 1,029 75
Coca-Cola ........................................ 36,954 2,589
Coca-Cola Enterprises ............................ 6,063 229
Conagra .......................................... 7,314 230
H.J. Heinz ....................................... 5,426 316
Hershey Foods .................................... 2,146 144
Kellogg .......................................... 6,102 223
Quaker Oats ...................................... 2,043 125
Ralston Purina Group ............................. 4,680 163
RJR Nabisco Holdings ............................. 4,868 140
Sara Lee ......................................... 7,001 409
Seagram .......................................... 5,191 178
Unilever ADR ..................................... 9,596 742
Wm. Wrigley, Jr. ................................. 1,742 154
--------
6,597
--------
Forest Products & Paper -- 0.1%
Weyerhaeuser ..................................... 2,983 150
--------
Furniture/Home Appliance -- 0.0%
National Service Industries ...................... 621 24
--------
Games, Toys, Children's Vehicles -- 0.2%
Hasbro ........................................... 1,971 69
Mattel ........................................... 4,387 152
--------
221
--------
Gas/Natural Gas -- 0.5%
Columbia Gas Systems ............................. 1,250 71
Consolidated Natural Gas ......................... 1,437 78
Eastern Enterprises .............................. 337 14
Enron ............................................ 4,939 260
Nicor ............................................ 716 30
ONEOK ............................................ 472 16
Peoples Energy ................................... 530 20
Sonat ............................................ 1,649 49
Williams ......................................... 6,368 183
--------
721
--------
See Accompanying Notes
49
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
General Utilities -- 0.1%
Niagara Mohawk Power* ............................ 2,808 $ 43
Oryx Energy* ..................................... 1,592 22
PECO Energy ...................................... 3,341 134
--------
199
--------
Glass Products -- 0.1%
Corning Glass .................................... 3,476 139
--------
Gold Mining -- 0.0%
Newmont Mining ................................... 2,506 50
--------
Grain Mill Products -- 0.1%
General Mills .................................... 2,320 175
--------
Heavy Construction -- 0.0%
Foster Wheeler ................................... 611 10
--------
Hotels & Lodging -- 0.2%
Harrah's Entertainment* .......................... 1,518 24
Hilton Hotels .................................... 3,905 85
Marriott International, Cl A* .................... 3,749 110
--------
219
--------
Household Products -- 0.2%
Clorox ........................................... 1,557 173
Maytag ........................................... 1,371 74
Whirlpool ........................................ 1,139 64
--------
311
--------
Insurance -- 5.2%
Aetna ............................................ 2,163 167
Allstate ......................................... 12,419 506
American General ................................. 3,794 267
American International Group ..................... 15,738 1,479
Aon .............................................. 2,531 146
Cigna ............................................ 3,182 248
Cincinnati Financial ............................. 2,505 98
Citigroup ........................................ 34,264 1,720
Conseco .......................................... 4,683 155
General RE ....................................... 1,134 265
Hartford Financial Services Group ................ 3,499 193
Humana* .......................................... 2,502 50
Jefferson-Pilot .................................. 1,590 109
Lincoln National ................................. 1,507 126
Loews ............................................ 1,719 172
Marsh & McLennan ................................. 3,832 223
MBIA ............................................. 1,488 96
MGIC Investment .................................. 1,699 75
Progressive ...................................... 1,089 162
Provident ........................................ 2,026 78
Providian Financial .............................. 1,424 131
Safeco ........................................... 2,117 91
St. Paul Cos ..................................... 3,539 125
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Insurance -- Continued
SunAmerica ....................................... 3,102 $ 246
The Chubb Corporation ............................ 2,482 174
Torchmark ........................................ 2,103 80
Transamerica ..................................... 938 100
United Healthcare ................................ 2,928 132
UNUM ............................................. 2,073 112
--------
7,526
--------
Leasing & Renting -- 0.2%
Pitney Bowes ..................................... 4,114 230
--------
Lumber & Wood Products -- 0.1%
Georgia Pacific .................................. 1,398 79
Louisiana-Pacific ................................ 1,645 28
--------
107
--------
Machinery -- 4.3%
Aerquip-Vickers .................................. 424 15
Applied Materials* ............................... 5,490 213
Baker Hughes ..................................... 4,762 87
Black & Decker ................................... 1,393 75
Briggs & Stratton ................................ 362 18
Brunswick ........................................ 1,485 33
Case ............................................. 1,116 27
Caterpillar ...................................... 5,467 270
Crane ............................................ 1,030 33
Cummins Engine ................................... 577 21
Deere & Co. ...................................... 3,670 128
Dover ............................................ 3,344 119
Emerson Electric ................................. 6,602 429
General Electric ................................. 48,768 4,413
Harnischfeger Industries ......................... 716 7
Ingersoll Rand ................................... 2,476 116
Milacron ......................................... 590 12
NACCO Industries, Class A ........................ 123 11
Pall ............................................. 1,859 43
Parker-Hannifin .................................. 1,657 58
Tenneco .......................................... 2,543 91
Timken ........................................... 935 18
W.W. Grainger .................................... 1,465 62
--------
6,299
--------
Machinery, Except Electrical -- 0.0%
Harris ........................................... 1,199 45
--------
Manufacturing - Tools & Components -- 0.1%
Danaher .......................................... 2,005 91
Raychem .......................................... 1,257 43
Snap-On Tools .................................... 886 30
--------
164
--------
See Accompanying Notes
50
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Measuring Devices -- 0.3%
Honeywell ........................................ 1,890 $ 151
KLA-Tencor* ...................................... 1,302 44
Mallinckrodt ..................................... 1,096 35
Perkin Elmer ..................................... 736 69
Tektronix ........................................ 710 19
Thermo Electron* ................................. 2,489 42
--------
360
--------
Medical & Medical Services -- 1.5%
Allergan ......................................... 980 60
Bausch & Lomb .................................... 838 47
Baxter International ............................. 4,278 272
Becton Dickinson ................................. 3,706 157
Biomet* .......................................... 1,680 64
Boston Scientific* ............................... 2,933 145
C.R. Bard ........................................ 841 39
Cardinal Health .................................. 2,997 206
Columbia/HCA Healthcare .......................... 9,672 238
Guidant .......................................... 2,260 194
HCR Manor Care* .................................. 1,626 52
Healthsouth* ..................................... 6,334 85
Medtronic ........................................ 7,035 476
St. Jude Medical ................................. 1,262 37
Tenet Healthcare* ................................ 4,620 137
--------
2,209
--------
Metal/Fabricate Hardware -- 0.0%
Reynolds Metals .................................. 1,080 59
--------
Metals & Mining -- 0.1%
Asarco ........................................... 595 12
Cyprus AMAX Minerals ............................. 1,404 16
Freeport-McMoran Copper &
Gold, Cl B ...................................... 2,696 35
Phelps Dodge ..................................... 879 50
--------
113
--------
Miscellaneous Business Services -- 2.4%
Adobe Systems .................................... 1,007 45
Autodesk ......................................... 705 26
Automatic Data Processing ........................ 4,512 347
BMC Software* .................................... 3,092 158
Cabletron Systems* ............................... 2,464 34
Cendant* ......................................... 12,860 244
Ceridian* ........................................ 1,087 71
Computer Associates
International ................................... 8,413 372
Computer Sciences* ............................... 2,367 135
Deluxe ........................................... 1,211 42
Ecolab ........................................... 1,943 60
Electronic Data Systems .......................... 7,377 288
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Miscellaneous Business Service -- Continued
First Data ....................................... 6,697 $ 179
HBO .............................................. 6,460 161
Newell ........................................... 2,438 108
Novell* .......................................... 5,298 88
Oracle* .......................................... 14,589 500
Parametric Technology* ........................... 4,080 69
Peoplesoft* ...................................... 3,454 71
Shared Medical Systems ........................... 398 21
Sun Microsystems* ................................ 5,678 420
--------
3,439
--------
Miscellaneous Consumer Services -- 0.1%
Service International ............................ 3,856 144
--------
Miscellaneous Manufacturing -- 0.5%
Johnson Controls ................................. 1,270 73
Jostens .......................................... 552 13
Tyco International ............................... 9,657 636
--------
722
--------
Miscellaneous Transportation -- 0.0%
Fleetwood Enterprises ............................ 516 17
--------
Office Furniture & Fixtures -- 0.0%
Ikon Office Solutions ............................ 2,032 20
--------
Oil & Gas Extraction -- 0.1%
USX Marathon Group ............................... 4,610 131
--------
Paint/Glass/Wallpaper Stores -- 0.0%
Sherwin Williams ................................. 2,591 74
--------
Paper & Paper Products -- 0.8%
Bemis ............................................ 800 30
Boise Cascade .................................... 844 27
Champion International ........................... 1,433 60
Fort James ....................................... 3,306 129
International Paper .............................. 4,605 200
Kimberly-Clark ................................... 8,204 432
Mead ............................................. 1,557 47
Potlatch ......................................... 434 16
Temple-Inland .................................... 833 45
Union Camp ....................................... 1,039 67
Westvaco ......................................... 1,519 43
Willamette Industries ............................ 1,670 58
--------
1,154
--------
See Accompanying Notes
51
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Petroleum & Fuel Products -- 0.9%
Amerada Hess ..................................... 1,363 $ 76
Anadarko Petroleum ............................... 1,800 51
Apache ........................................... 1,478 34
Atlantic Richfield ............................... 4,813 320
Burlington Resources ............................. 2,661 95
Helmerich & Payne ................................ 754 13
Kerr-McGee ....................................... 716 28
Occidental Petroleum ............................. 5,292 107
Phillips Petroleum ............................... 3,873 163
Rowan Companies* ................................. 1,277 13
Schlumberger ..................................... 8,158 365
Union Pacific Resources Group .................... 3,764 42
--------
1,307
--------
Petroleum Refining -- 5.3%
Amoco ............................................ 14,302 843
Ashland .......................................... 1,146 56
Chevron .......................................... 9,809 820
Coastal .......................................... 3,187 111
Exxon ............................................ 36,548 2,743
Mobil ............................................ 11,716 1,010
Pennzoil ......................................... 716 27
Royal Dutch Petroleum ............................ 32,140 1,511
Sunoco ........................................... 1,401 47
Texaco ........................................... 8,032 462
Unocal ........................................... 3,617 123
--------
7,753
--------
Photographic Equipment & Supplies -- 0.6%
Eastman Kodak .................................... 4,838 351
Polaroid ......................................... 661 14
Xerox ............................................ 4,925 529
--------
894
--------
Plastic Products -- 0.2%
Illinois Tool Works .............................. 3,747 238
--------
Precious Metals -- 0.2%
Barrick Gold ..................................... 5,591 112
Battle Mountain Gold ............................. 3,444 16
Homestake Mining ................................. 3,165 34
Placer Dome Group ................................ 3,747 55
--------
217
--------
Primary Metal Industries -- 0.0%
USX-U.S. Steel Group ............................. 1,320 32
--------
Printing & Publishing -- 1.6%
American Greetings, Cl A ......................... 1,058 45
Dow Jones ........................................ 1,405 67
Gannett .......................................... 4,266 275
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Printing & Publishing -- Continued
Knight-Ridder .................................... 1,182 $ 61
McGraw-Hill ...................................... 1,489 133
Meredith ......................................... 791 31
Moore ............................................ 1,325 14
New York Times, Cl A ............................. 2,840 88
R.R. Donnelley & Sons ............................ 2,086 89
Time Warner ...................................... 8,983 950
Times Mirror, Cl A ............................... 1,300 76
Tribune .......................................... 1,828 117
Viacom, Cl B* .................................... 5,366 357
--------
2,303
--------
Professional Services -- 0.4%
Dun & Bradstreet* ................................ 2,561 77
EG & G ........................................... 689 19
Halliburton ...................................... 6,579 193
Ims Health* ...................................... 2,489 165
Paychex .......................................... 2,445 122
--------
576
--------
Radio & TV Broadcasting &
Communications Equipment -- 0.0%
ITT Industries ................................... 1,775 64
--------
Railroads -- 0.4%
Burlington Northern Santa Fe ..................... 7,090 241
Norfolk Southern ................................. 5,680 173
Union Pacific .................................... 3,707 180
--------
594
--------
Real Estate -- 0.0%
Kaufman & Broad Home ............................. 597 15
--------
Repair Services -- 0.0%
Ryder System ..................................... 1,097 31
--------
Retail -- 7.3%
Alberto-Culver, Cl B ............................. 826 21
Albertson's ...................................... 3,684 210
American Stores .................................. 4,115 138
Autozone* ........................................ 2,289 69
Circuit City ..................................... 1,499 54
Consolidated* .................................... 1,639 35
Costco* .......................................... 3,245 204
CVS .............................................. 5,836 288
Darden Restaurants ............................... 2,086 33
Dayton Hudson .................................... 6,581 296
Dillards, Cl A ................................... 1,661 57
Dollar General ................................... 2,770 66
Federated Department Stores* ..................... 3,161 132
Fred Meyer* ...................................... 2,309 117
Gap .............................................. 5,889 433
See Accompanying Notes
52
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Retail -- Continued
Great Atlantic & Pacific Tea ..................... 573 $ 16
Harcourt General ................................. 1,062 55
Home Depot ....................................... 22,026 1,096
Kmart* ........................................... 7,379 113
Kohls* ........................................... 2,368 116
Kroger* .......................................... 3,845 204
Limited .......................................... 3,415 99
Longs Drug Stores ................................ 583 21
Lowe's ........................................... 5,273 223
May Department Stores ............................ 3,462 209
McDonald's ....................................... 10,261 719
Nordstrom ........................................ 2,230 83
J.C. Penney ...................................... 3,793 209
Pep Boys - Manny, Moe & Jack ..................... 956 14
PepsiCo .......................................... 22,075 854
Rite Aid ......................................... 3,874 180
Safeway* ......................................... 7,313 386
Sears Roebuck .................................... 5,881 279
Staples* ......................................... 4,306 150
Tandy ............................................ 1,505 68
TJX .............................................. 4,753 122
Toys "R" Us* ..................................... 3,916 77
Tricon Global Restaurants* ....................... 2,286 104
Venator Group* ................................... 2,028 16
Wal-Mart Stores .................................. 33,510 2,524
Walgreen ......................................... 7,456 400
Wendy's International ............................ 1,907 38
Winn Dixie Stores ................................ 2,226 90
--------
10,618
--------
Rubber & Plastic -- 0.3%
Cooper Tire & Rubber ............................. 1,161 23
Goodyear Tire & Rubber ........................... 2,354 134
Nike ............................................. 4,313 173
Reebok International ............................. 846 13
Rubbermaid ....................................... 2,247 74
Sealed Air* ...................................... 1,248 55
Tupperware ....................................... 865 15
--------
487
--------
Semi-Conductors/Instruments -- 2.9%
Advanced Micro Devices* .......................... 2,156 60
AMP .............................................. 3,277 159
Intel ............................................ 25,180 2,709
LSI Logic* ....................................... 2,113 33
Micron Technology ................................ 3,194 132
Motorola ......................................... 8,965 556
National Semiconductor* .......................... 2,461 35
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Semi-Conductors/Instruments -- Continued
Texas Instruments ................................ 5,848 $ 447
Thomas & Betts ................................... 850 37
--------
4,168
--------
Single Family Housing Construction -- 0.0%
H & R Block ...................................... 1,507 68
Pulte ............................................ 646 16
--------
84
--------
Specialty Construction -- 0.1%
Masco ............................................ 5,098 147
--------
Specialty Machinery -- 0.1%
Cooper Industries ................................ 1,745 86
--------
Steel & Steel Works -- 0.4%
Alcan Aluminum ................................... 3,410 91
Allegheny Teledyne ............................... 2,953 61
Aluminum Company of America ...................... 2,799 207
Bethlehem Steel* ................................. 1,943 16
Engelhard ........................................ 2,166 42
Inco ............................................. 2,489 29
Nucor ............................................ 1,320 55
Worthington Industries ........................... 1,449 18
--------
519
--------
Technology -- 0.1%
Rockwell International ........................... 2,866 140
--------
Telephones & Telecommunication -- 7.5%
Airtouch Communications* ......................... 8,601 492
Alltel ........................................... 4,110 218
Ameritech ........................................ 16,524 894
AT&T ............................................. 27,075 1,687
Bell Atlantic .................................... 23,284 1,295
BellSouth ........................................ 14,745 1,287
Frontier ......................................... 2,570 77
GTE .............................................. 14,450 896
MCI WorldCom* .................................... 26,620 1,570
Nextel Communications, Cl A* ..................... 4,282 92
SBC Communications ............................... 29,337 1,406
Sprint ........................................... 6,447 469
Sprint Corp (PCS Group)* ......................... 9,303 149
US West .......................................... 7,518 468
--------
11,000
--------
Tobacco -- 1.5%
Philip Morris .................................... 36,453 2,039
UST .............................................. 2,784 97
--------
2,136
--------
See Accompanying Notes
53
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Core Equity Fund
November 30, 1998
(Unaudited)
Number of Value
Shares/PAR (000) (000)
---------------- -----
COMMON STOCK -- Continued
Transportation Services -- 0.1%
CSX .............................................. 3,278 $ 137
--------
Wholesale - Food -- 0.1%
Supervalu ........................................ 1,814 47
Sysco ............................................ 5,059 136
--------
183
--------
TOTAL COMMON STOCK
(Cost $138,757) ............................................. 140,669
--------
CASH EQUIVALENTS -- 3.5%
S&P Depository Receipt
Registered Investment Co. ...................... 17,284 2,007
Goldman Sachs Financial Square Premium
Money Market Fund .............................. 3,095 3,095
Goldman Sachs Financial Square Treasury
Money Market Fund .............................. 37 37
--------
TOTAL CASH EQUIVALENTs
(Cost $4,893) ............................................... 5,139
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $143,650) ............................................. $145,808
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.3% ................................................. 444
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
14,417,525 outstanding shares
of beneficial interest ...................................... $143,173
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
52,088 outstanding shares of
beneficial interest ......................................... 487
Accumulated net realized loss
on investments .............................................. (203)
Net unrealized appreciation on investments ................... 2,479
Undistributed net investment income .......................... 316
--------
TOTAL NET ASSETS -- 100.0% ..................................... $146,252
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................................ $10.10
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $10.10
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($10.10 Divide 96.25%) ........................................... $10.49
========
- ----------
* Non-income producing security
ADR -- American Depository Receipt
See Accompanying Notes
54
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Equity Index Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Period
Ended November 30, 1998
(Unaudited)
-----------------------
Class I/1 Class A/1
--------- ---------
<S> <C> <C>
Net asset value, beginning of period.................... $ 10.00 $ 9.09
-------- ------
Income From Investment Operations
Net investment income................................. 0.04 0.01
Net gain on securities (realized and unrealized)...... 0.08 1.00
-------- ------
Total from investment operations................... 0.12 1.01
-------- ------
Less Distributions
Dividends from net investment income.................. (0.02) (0.00)
-------- ------
Total distributions................................ (0.02) (0.00)
-------- ------
Net asset value, end of period.......................... $ 10.10 $10.10
======== ======
Total Return............................................ 1.28%/3 11.11%/2,3
Ratios/Supplemental Data
Net assets, end of period (in 000's).................. $145,726 $ 526
Ratio of expenses to average net assets............... 0.24%/4,6 0.48%/5,6
Ratio of net investment income to average net assets.. 1.34%/4,6 1.56%/4,6
Portfolio turnover rate............................... 8% 8%
</TABLE>
1 Class I and Class A commenced operations on July 10, 1998 and October 15,
1998, respectively.
2 Total return excludes sales charge.
3 Returns are for the period indicated and have not been annualized.
4 The operating expense ratio and net investment income ratio before fee waivers
by the Investment Adviser for Class I for the period ended November 30, 1998,
would have been 0.59% and 0.98%, respectively.
5 The operating expense ratio and net investment income ratio before fee waivers
by the Investment Adviser for Class A for the period ended November 30, 1998,
would have been 0.84% and 1.15%, respectively.
6 Annualized.
See Accompanying Notes
55
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Income Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 94.2%
Aerospace -- 2.6%
General Dynamics ................................. 127,100 $ 7,380
Northrop Grumman ................................. 55,653 4,522
--------
11,902
--------
Auto -- 2.8%
Daimler Chrysler ................................. 49,568 4,545
Ford Motor ....................................... 144,100 7,961
--------
12,506
--------
Automotive Parts-Equipment -- 1.0%
Genuine Parts .................................... 135,000 4,447
--------
Banking -- 10.2%
Bank One ......................................... 124,530 6,390
BankAmerica ...................................... 156,839 10,224
First Union ...................................... 101,300 6,154
Fleet Financial Group ............................ 129,600 5,403
J.P. Morgan ...................................... 45,200 4,831
Mellon Bank ...................................... 71,400 4,494
PNC Bank ......................................... 79,500 4,099
Wachovia ......................................... 49,300 4,304
--------
45,899
--------
Building & Building Supplies -- 3.3%
Armstrong World Industries ....................... 97,200 6,476
MASCO ............................................ 289,500 8,359
--------
14,835
--------
Chemicals -- 3.2%
Dow Chemical ..................................... 35,984 3,504
E.I. duPont de Nemours ........................... 75,700 4,447
RPM .............................................. 381,650 6,249
--------
14,200
--------
Diversified -- 5.3%
Fluor ............................................ 104,500 4,474
Fortune Brands ................................... 191,700 6,530
Minnesota Mining &
Manufacturing ................................... 65,900 5,293
Ogden ............................................ 73,100 1,942
Textron .......................................... 40,700 3,162
United Technologies .............................. 24,300 2,605
--------
24,006
--------
Drugs & Health Care -- 1.5%
Bristol-Myers Squibb ............................. 55,600 6,814
--------
Electrical Equipment -- 3.7%
Cooper Industries ................................ 82,700 4,063
Hubbell .......................................... 95,700 3,858
Rockwell International ........................... 84,600 4,140
Thomas & Betts ................................... 104,000 4,504
--------
16,565
--------
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Financial Services -- 2.2%
Fannie Mae ....................................... 136,700 $ 9,945
--------
Food & Beverage -- 1.7%
General Mills .................................... 106,300 8,026
--------
Home Appliances -- 1.0%
Maytag ........................................... 82,900 4,487
--------
Insurance -- 3.8%
Cigna ............................................ 57,600 4,482
Marsh & McLennan ................................. 120,250 6,997
The Chubb Corporation ............................ 78,661 5,511
--------
16,990
--------
Machinery & Heavy Equipment -- 0.4%
Caterpillar ...................................... 35,200 1,740
--------
Medical & Medical Services -- 0.9%
Baxter International ............................. 62,400 3,966
--------
Metals & Mining -- 2.4%
Aluminum Company of America ...................... 115,800 8,584
USX-U.S. Steel Group ............................. 93,400 2,282
--------
10,866
--------
Natural Gas -- 3.6%
Consolidated Natural Gas ......................... 154,725 8,403
Enron ............................................ 146,400 7,695
--------
16,098
--------
Office & Business Equipment -- 2.4%
Pitney Bowes ..................................... 98,600 5,522
Xerox ............................................ 47,500 5,106
--------
10,628
--------
Oil & Gas -- 13.1%
Atlantic Richfield ............................... 88,900 5,912
Chevron .......................................... 130,100 10,880
Exxon ............................................ 110,000 8,257
Mobil ............................................ 118,800 10,239
Royal Dutch Petroleum ............................ 146,000 6,862
Texaco ........................................... 211,100 12,151
Ultramar Diamond Shamrock ........................ 177,700 4,576
--------
58,877
--------
Paper & Forest Products -- 1.2%
Weyerhaeuser ..................................... 64,200 3,218
Kimberly-Clark ................................... 40,000 2,105
--------
5,323
--------
See Accompanying Notes
56
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Income Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Professional Services -- 1.6%
Dun & Bradstreet* ................................ 234,400 $ 7,076
--------
Real Estate -- 4.0%
Arden Realty Group ............................... 205,200 4,720
Duke Realty Investments .......................... 324,800 7,369
Kimco Realty ..................................... 50,000 1,934
Mack-Cali Realty ................................. 70,400 2,090
Sun Communities .................................. 53,000 1,726
--------
17,839
--------
Retail Merchandising -- 3.7%
Intimate Brands .................................. 127,300 3,668
May Department Stores ............................ 120,200 7,250
J.C. Penney ...................................... 106,000 5,830
--------
16,748
--------
Telecommunications -- 2.5%
AT&T ............................................. 180,100 11,222
--------
Tobacco -- 1.5%
UST .............................................. 196,000 6,811
--------
Utilities-Electric -- 7.1%
American Water Works ............................. 118,500 3,666
Consolidated Edison
Company of New York ............................. 178,000 9,045
Dominion Resources ............................... 140,500 6,489
Florida Progress ................................. 75,300 3,219
LG&E Energy ...................................... 145,400 4,071
Wisconsin Energy ................................. 172,600 5,340
--------
31,830
--------
Utilities-Telephone -- 6.8%
Ameritech ........................................ 158,600 8,584
Bell Atlantic .................................... 82,539 4,591
BellSouth ........................................ 90,200 7,870
GTE .............................................. 153,300 9,505
--------
30,550
--------
Waste Collection & Disposal -- 0.7%
Browning-Ferris Industries ....................... 109,600 3,233
--------
TOTAL COMMON STOCK
(Cost $319,669) .................................. 423,429
--------
PREFERRED STOCK -- 2.6%
Insurance -- 1.4%
American General Delaware ........................ 69,695 6,273
--------
Metals & Mining -- 0.5%
Cyprus AMAX Minerals ............................. 57,700 2,142
--------
Number of Value
Shares/Par (000) (000)
---------------- -----
PREFERRED STOCK -- Continued
Paper & Forest Products -- 0.7%
International Paper .............................. 70,386 $ 3,387
--------
TOTAL PREFERRED STOCK
(Cost $11,034) .............................................. 11,802
--------
CASH EQUIVALENT -- 2.6%
Fidelity Domestic Money
Market Fund .................................... 11,813 11,813
--------
TOTAL CASH EQUIVALENT
(Cost $11,813) .............................................. 11,813
--------
TOTAL INVESTMENTS -- 99.4%
(Cost $342,516) ............................................. $447,044
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% ................................................. 2,610
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
25,423,131 outstanding shares
of beneficial interest ...................................... 329,197
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
258,314 outstanding shares of
beneficial interest ......................................... 3,865
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
32,585 outstanding shares of
beneficial interest ......................................... 525
Accumulated net realized gain
on investments .............................................. 9,961
Net unrealized appreciation on investments ................... 104,528
Undistributed net investment income .......................... 1,578
--------
TOTAL NET ASSETS -- 100.0% ..................................... $449,654
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ........................................ $ 17.49
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $ 17.46
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($17.46 Divide 94.5%) ............................................ $ 18.48
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................................. $ 17.41
========
*Non-income producing security.
See Accompanying Notes
57
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Equity Income Fund
November 30, 1998
(Unaudited)
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 ------------------------------------------------------
(Unaudited) 1998 1997
------------------------------ ------------------------------- ------------------
Class I Class A Class B Class I Class A Class B/6 Class I Class A
------- ------- ------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 17.53 $17.51 $17.54 $ 14.87 $14.86 $16.28 $ 12.66 $12.65
-------- ------ ------ -------- ------ ------ -------- ------
Income From Investment Operations
Net investment income............ 0.16 0.12 0.63 0.27 0.26 0.46 0.30 0.31
Net gain/(loss) on securities
(realized and unrealized)....... (0.09) (0.10) (0.71) 3.44 3.41 0.86 2.73 2.68
-------- ------ ------ -------- ------ ------ -------- ------
Total from investment
operations................. 0.07 0.02 (0.08) 3.71 3.67 1.32 3.03 2.99
-------- ------ ------ -------- ------ ------ -------- ------
Less Distributions
Dividends from net
investment income............... (0.11) (0.07) (0.05) (0.32) (0.29) (0.06) (0.31) (0.27)
Distributions from net realized
capital gains................... (0.00) (0.00) (0.00) (0.73) (0.73) (0.00) (0.51) (0.51)
-------- ------ ------ -------- ------ ------ -------- ------
Total distributions........... (0.11) (0.07) (0.05) (1.05) (1.02) (0.06) (0.82) (0.78)
-------- ------ ------ -------- ------ ------ -------- ------
Net asset value, end of period..... $ 17.49 $17.46 $17.41 $ 17.53 $17.51 $17.54 $ 14.87 $14.86
======== ====== ====== ======== ====== ====== ======== ======
Total Return....................... 0.46%/7 0.13%/5,7 (0.39)%/5,7 25.69% 25.41%/5 25.58%/4,5 24.62% 24.33%/5
Ratios/Supplemental Data
Net assets, end of period
(in 000's)...................... $444,576 $4,511 $ 567 $193,923 $2,151 $ 3 $127,130 $ 410
Ratio of expenses to
average net assets.............. 0.94%/4 1.19%/4 1.90/%4 0.92% 1.17% 1.86% 1.01% 1.26%
Ratio of net investment
income to average
net assets...................... 2.25%/4 1.89%/4 1.88%/4 1.80% 1.62% 0.68% 2.44% 2.17%
Portfolio turnover rate.......... 13% 13% 13% 18% 18% 18% 35% 35%
<CAPTION>
For the Year
Ended May 31, For the Period
------------------ Ended May 31,
1996 1995
------------------ ----------------------
Class I Class A Class I/3 Class A/3
------- ------- --------- ---------
<S> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 11.01 $11.01 $ 10.00 $10.26
------ ------ ------- ------
Income From Investment Operations
Net investment income..................... 0.34 0.33 0.34 0.26
Net gain/(loss) on securities
(realized and unrealized)................ 1.79 1.77 0.94 0.75
------ ------ ------- ------
Total from investment
operations.......................... 2.13 2.10 1.28 1.01
------ ------ ------- ------
Less Distributions
Dividends from net
investment income........................ (0.34) (0.32) (0.27) (0.26)
Distributions from net realized
capital gains............................ (0.14) (0.14) (0.00) (0.00)
------ ------ ------- ------
Total distributions.................... (0.48) (0.46) (0.27) (0.26)
------ ------ ------- ------
Net asset value, end of period.............. $12.66 $12.65 $ 11.01 $11.01
====== ====== ======= ======
Total Return................................ 19.72% 19.37%/5 14.34%/4 13.18%/4,5
Ratios/Supplemental Data
Net assets, end of period (in 000's)...... $61,978 $ 263 $36,194 $ 125
Ratio of expenses to
average net assets....................... 1.06%/1 1.31%/2 99%/1,4 1.41%/2,4
Ratio of net investment
income to average
net assets............................... 3.02%/1 2.75%/2 3.87%/1,4 3.45%/2,4
Portfolio turnover rate................... 53% 53% 12% 12%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class I for the year ended May 31, 1996, would
have been 1.08% and 3.00%, respectively. The operating expense ratio and the
net investment income ratio before fee waivers by the Investment Advisers,
Administrator and Custodian for Class I for the period ended May 31, 1995,
would have been 1.21% and 3.66%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Custodian for Class A for the year ended May 31, 1996, would
have been 1.32% and 2.74%, respectively. The operating expense ratio and the
net investment income ratio before fee waivers by the Investment Advisers,
Administrator, and Custodian for Class A for the period ended May 31, 1995,
would have been 1.45% and 3.40%, respectively.
3 Class I and Class A commenced operations on July 1, 1994, and August 22, 1994,
respectively.
4 Annualized.
5 Total return excludes sales charge.
6 Class B commenced operations on January 6, 1998.
7 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
58
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Balanced Allocation Fund
November 30, 1998
(Unaudited)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 49.5%
Aircraft -- 0.5%
United Technologies .............................. 2,600 $ 279
--------
Banking -- 1.6%
Comerica ......................................... 4,000 258
Golden West Financial ............................ 2,600 246
State Street ..................................... 5,400 371
--------
875
--------
Banks -- 0.5%
Wells Fargo ...................................... 7,100 256
--------
Beauty Products -- 1.5%
Gillette ......................................... 8,400 386
Procter & Gamble ................................. 4,900 429
--------
815
--------
Broadcasting, Newspapers & Advertising -- 0.4%
Comcast .......................................... 4,800 233
--------
Chemicals -- 1.1%
E.I. duPont de Nemours ........................... 3,800 223
Monsanto ......................................... 8,300 376
--------
599
--------
Communications Equipment -- 0.8%
Lucent Technologies .............................. 5,100 439
--------
Computers -- 2.6%
Cisco Systems* ................................... 9,850 743
Hewlett Packard .................................. 3,500 220
International Business Machines .................. 2,800 462
--------
1,425
--------
Drugs & Health Care -- 4.8%
Abbott Laboratories .............................. 5,400 259
Eli Lilly ........................................ 3,400 305
Merck ............................................ 4,000 619
Pfizer ........................................... 6,900 770
Schering- Plough ................................. 3,800 404
Warner-Lambert ................................... 3,200 242
--------
2,599
--------
Electrical -- 1.9%
Emerson Electric ................................. 6,500 422
General Electric ................................. 6,800 615
--------
1,037
--------
Electrical Services -- 0.5%
Texas Utilities .................................. 5,700 254
--------
Entertainment -- 0.4%
Walt Disney ...................................... 7,100 229
--------
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- Continued
Environmental Services -- 0.4%
Waste Management ................................. 4,700 $ 202
--------
Financial Services -- 2.6%
Fannie Mae ....................................... 11,000 800
Freddie Mac ...................................... 9,900 599
--------
1,399
--------
Food & Beverage -- 0.8%
Coca-Cola ........................................ 6,400 448
--------
Home Decoration Products -- 0.8%
Newell ........................................... 9,900 438
--------
Insurance -- 2.5%
Allstate ......................................... 8,500 346
American International Group ..................... 5,350 503
SunAmerica ....................................... 4,300 341
Torchmark ........................................ 5,200 198
--------
1,388
--------
Leisure -- 0.4%
Mattel ........................................... 6,600 228
--------
Medical & Medical Services -- 0.6%
Medtronic ........................................ 4,900 332
--------
Miscellaneous Business Services -- 3.6%
Automatic Data Processing ........................ 5,600 431
Ceridian* ........................................ 4,700 306
HBO .............................................. 13,000 324
Microsoft* ....................................... 7,300 891
--------
1,952
--------
Miscellaneous Consumer Services -- 0.7%
Service International ............................ 10,300 385
--------
Miscellaneous Manufacturing -- 1.3%
Tyco International ............................... 10,700 704
--------
Motorcycles -- 0.6%
Harley-Davidson .................................. 8,000 335
--------
Office & Business Equipment -- 0.5%
Xerox ............................................ 2,600 279
--------
Petroleum Refining -- 2.3%
Exxon ............................................ 7,200 540
Mobil ............................................ 5,300 457
Schlumberger ..................................... 5,300 237
--------
1,234
--------
See Accompanying Notes
59
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Balanced Allocation Fund
November 30, 1998
(Unaudited)
Number Value
of Shares/Par (000)
------------- -----
COMMON STOCK -- Continued
Printing & Publishing -- 1.4%
Time Warner ...................................... 7,200 $ 761
--------
Retail -- 6.8%
Albertson's ...................................... 7,200 411
Costco Companies* ................................ 6,600 414
CVS .............................................. 6,800 336
Dayton Hudson .................................... 4,800 216
Gap .............................................. 6,800 500
Home Depot ....................................... 14,600 726
Wal-Mart Stores .................................. 7,000 527
Walgreen ......................................... 12,100 650
--------
3,780
--------
Semi-Conductors/Instruments -- 0.9%
Intel ............................................ 4,500 484
--------
Telephones & Telecommunication -- 3.5%
Ameritech ........................................ 6,000 325
BellSouth ........................................ 4,900 428
GTE .............................................. 5,800 360
MCI WorldCom* .................................... 8,000 472
SBC Communications ............................... 7,300 350
--------
1,935
--------
Tobacco -- 0.8%
Philip Morris .................................... 7,800 436
--------
Wholesale -- 2.4%
Cardinal Health .................................. 5,700 391
Johnson & Johnson ................................ 4,600 374
Safeway* ......................................... 10,800 570
--------
1,335
--------
TOTAL COMMON STOCK
(Cost $25,993) .............................................. 27,095
--------
ASSET BACKED SECURITIES -- 2.4%
Miscellaneous -- 2.4%
MSCI 98-CF1 A1
6.330%.................... 10/15/07 $ 2 $ 3
PNC 98-7 A5
6.750%.................... 09/25/28 230 232
PSSF 1998-C1 A1A3
6.350%.................... 09/15/07 320 325
Rali 1998-QS14 A2
6.500%.................... 10/25/28 220 220
Saskatchewan
8.000%.................... 07/15/04 325 366
Saxon 98-4 6.395%
0.000%.................... 05/25/26 200 200
--------
TOTAL ASSET BACKED SECURITIES
(Cost $1,336)................................................ 1,346
--------
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- 10.7%
Aerospace & Defense -- 0.3%
Raytheon
5.700%.................... 11/01/03 $140 $ 140
--------
Banking -- 0.2%
Citicorp
7.125%.................... 09/01/05 75 80
--------
Building & Construction -- 0.3%
Halliburton
5.625%.................... 12/01/08 175 176
--------
Chemicals -- 0.7%
Akzo Nobel Series 144A
6.000%.................... 11/15/03 400 403
--------
Computers -- 0.8%
Computer Associates
6.250%.................... 04/15/03 420 418
--------
Diversified -- 0.4%
EOP Operating
6.500%.................... 06/15/04 250 246
--------
Food & Kindred Products -- 0.5%
Archer Daniels Midland Industrial
7.500%.................... 03/15/27 100 117
Nabisco
6.375%.................... 02/01/35 150 147
--------
264
--------
Greetings Cards -- 0.6%
American Greetings
6.100%.................... 08/01/28 325 331
--------
Miscellaneous Financial Services -- 1.6%
Erac USA Finance Enterprise
6.350%.................... 01/15/01 100 102
Franchise Finance
8.250%.................... 10/30/03 135 137
TMS TR
7.500%.................... 01/15/26 600 636
--------
875
--------
Miscellaneous Personal Credit -- 2.4%
Associates
5.750%.................... 11/01/03 100 101
0.000%.................... 12/01/03 250 250
6.250%.................... 11/01/08 150 154
Ford Motor Credit
6.000%.................... 01/14/03 100 102
GECMS 1997-HE4 A4
6.765%.................... 04/25/15 350 356
General Motors Acceptance
9.000%.................... 10/15/02 50 56
See Accompanying Notes
60
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Balanced Allocation Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Miscellaneous Personal Credit -- Continued
Salomon Smith Barney
6.250%.................... 01/15/05 $ 300 $ 301
--------
1,320
--------
Mortgage Bankers & Correspondents -- 0.6%
Countrywide Home Loan, Ser F, MTN
6.840%.................... 10/22/04 325 334
--------
Oil Services -- 0.4%
Halliburton
5.625%.................... 12/01/08 7 217
--------
Petroleum Refining -- 0.1%
Amoco Canada
6.750%.................... 02/15/05 50 54
--------
Plastic Products -- 0.9%
Armstrong World
6.500%.................... 08/15/05 485 503
--------
Printing & Publishing -- 0.1%
Times Mirror
6.610%.................... 09/15/27 50 53
--------
Telephones & Telecommunication -- 0.8%
Sprint Capital
5.700%.................... 11/15/03 175 175
6.875%.................... 11/15/28 265 279
--------
454
--------
TOTAL CORPORATE BONDS
(Cost $5,889)................................................ 5,868
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.0%
Federal National Mortgage Association -- 8.7%
Discount Note
5.336%.................... 12/10/98 300 300
Pool #437810
6.000%.................... 08/01/28 898 888
Pool #437972
6.000%.................... 08/01/28 199 197
Pool #440148
6.500%.................... 08/01/28 2,869 2,893
Pool #433330
6.500%.................... 08/01/28 499 503
--------
4,781
--------
Government National Mortgage Association -- 3.3%
Pool #439229
7.500%.................... 07/01/27 470 486
Pool #45149
7.500%.................... 09/15/27 1,254 1,298
--------
1,784
--------
Par Value
Maturity (000) (000)
-------- ----- -----
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,497) ............................................... $ 6,565
--------
U.S. Treasury Obligations -- 19.6%
U.S. Treasury Notes -- 15.9%
5.750%.................... 11/15/00 $ 3,640 3,718
6.250%.................... 08/31/02 535 564
6.500%.................... 10/15/06 3,995 4,427
--------
8,709
--------
U.S. Treasury Bond -- 3.7%
6.250% 08/15/23 1,780 2,005
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $10,469) .............................................. 10,714
--------
CASH EQUIVALENTS -- 6.2%
Federated Prime Obligations
Money Market Fund .............................. 2,000 2,000
Goldman Sachs Financial Square Premium
Money Market Fund .............................. 1,397 1,397
--------
TOTAL CASH EQUIVALENTS
(Cost $3,397) ............................................... 3,397
--------
TOTAL INVESTMENTS -- 100.4%
(Cost $53,581) .............................................. 54,985
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.4%) ............................................... (211)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
5,373,120 outstanding shares of
beneficial interest ......................................... 53,842
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
28,712 outstanding shares of
beneficial interest ......................................... 281
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
9,576 outstanding shares of
beneficial interest ......................................... 94
Accumulated net realized loss
on investments .............................................. (1,032)
Net unrealized appreciation on investments ................... 1,404
Undistributed net investment income .......................... 185
--------
TOTAL NET ASSETS -- 100.0% ..................................... $ 54,774
========
See Accompanying Notes
61
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Balanced Allocation Fund
November 30, 1998
(Unaudited)
Value
-----
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................................ $10.11
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................................. $10.11
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.11 -- 95.25%) ......................... $10.61
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................................. $10.15
========
- ----------
MTN -- Medium Term Note
See Accompanying Notes
62
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Balanced Allocation Fund
November 30, 1998
(Unaudited)
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Period
Ended November 30, 1998
(Unaudited)
---------------------------------------
Class I3 Class A3 Class B4
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning of period.................................. $ 10.00 $ 9.71 $ 9.85
-------- ------- -------
Income From Investment Operations
Net investment income............................................... 0.05 0.03 0.01
Net gain on securities (realized and unrealized).................... 0.08 0.39 0.29
-------- ------- -------
Total from investment operations................................. 0.13 0.42 0.30
-------- ------- -------
Less Distributions
Dividends from net investment income................................ (0.02) (0.02) (0.00)
-------- ------- -------
Total distributions.............................................. (0.02) (0.02) (0.00)
-------- ------- -------
Net asset value, end of period........................................ $ 10.11 $10.11 $ 10.15
======== ====== =======
Total Return.......................................................... 1.33%/2 4.00%/1,2 3.36%/1,2
Ratios/Supplemental Data
Net assets, end of period (in 000's)................................ $ 54,387 $ 290 $ 97
Ratio of expenses to average net assets............................. 1.15%/5 1.40%/5 2.11%/5
Ratio of net investment income to average net assets................ 1.58%/5 1.19%/5 0.27%/5
Portfolio turnover rate............................................. 67% 67% 67%
</TABLE>
1 Total return excludes sales charge.
2 Returns are for the period indicated and have not been annualized.
3 Class I and Class A commenced operations on July 10, 1998 and July 31, 1998,
respectively.
4 Class B commenced operations on November 11, 1998.
5 Annualized.
See Accompanying Notes
63
<PAGE>
[GRAPHIC OMITTED]
Portfolio of Investments
Armada Total Return Advantage Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
ASSET BACKED SECURITIES -- 21.8%
Auto -- 5.7%
Aesop 1997-1 A2
6.400%.................... 10/20/03 $ 3,495 $ 3,584
World Omni Automobile Lease
Securitization Trust
Series 1998-1 Class A2
5.962%.................... 08/14/01 5,644 5,721
Series 1997-A Class A3
6.850%.................... 06/25/03 8,669 8,838
--------
18,143
--------
Credit Cards -- 6.8%
Citibank Credit Trust, Series 96-I A
5.750%.................... 10/16/03 5,085 4,536
Discover Card Master Trust I,
Series 1998-4, Class A
5.750%.................... 10/16/03 4,260 4,299
MBNA Note Trust, Series1998-FC
6.450%.................... 02/15/05 4,645 4,609
Metris Master Trust,
Series 1997-1 , Class A
6.870%.................... 10/20/05 4,040 4,210
Sears Credit Account Master Trust,
Series 1996-4, Class A
6.450%.................... 10/16/06 3,895 4,012
--------
21,666
--------
Miscellaneous -- 9.3%
Copel Capital Funding,
Series 1997-A Class A4
6.470%.................... 04/20/05 3,735 3,841
Franchise Funding Credit
Association, Series 97-1,
Class A A
7.020%.................... 12/18/06 1,806 1,864
Green Tree Financial,
Series 1997-5, Class A5
6.620%.................... 05/15/29 2,535 2,703
Merrill Lynch Mortgage
Investors, Inc.,
Series 1996-C2, Class A2
6.820%.................... 11/21/28 3,195 3,355
Series 1998-G1, Class A1
7.110%.................... 08/25/27 4,015 4,116
Metlife Capital Equipment Loan
Trust, Series 1997-A,
Class A
6.850%.................... 05/20/08 3,025 3,158
PNC Student Loan Trust I,
Series 1997-2, Class A4
6.446%.................... 01/25/02 3,840 3,929
Series 1997-2, Class A6
6.572%.................... 01/25/04 2,870 2,988
Par Value
Maturity (000) (000)
-------- ----- -----
ASSET BACKED SECURITIES -- Continued
Miscellaneous -- Continued
Railcar Leasing, Series 1997-1,
Class A2
7.125%.................... 01/15/13 $ 3,610 $ 3,948
--------
29,902
--------
TOTAL ASSET BACKED SECURITIES
(Cost $67,897) ................................................. 69,711
--------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 7.5%
FHLMC/Remic, Series 2068, Class CJ
6.500%.................... 06/15/28 4,040 4,063
Collateralized Mortgage Obligation
Trust, Series 13, Class A
6.188%.................... 01/20/03 48 48
FHLMC CMO 2101 Pd
6.000%.................... 11/15/28 1,730 1,692
Federal Home Loan Mortgage
Pool #2055
6.500%.................... 02/15/28 10,400 10,526
Vende Mortgage Trust,
Series 1994-2, Class 3K
6.500%.................... 11/15/13 7,575 7,685
--------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $23,710) .............................................. 24,014
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.6%
Federal Home Loan Mortgage Corporation -- 0.0%
Pool #160045
8.750%.................... 05/01/08 4 5
Pool #181063
7.500%.................... 12/01/10 104 110
Pool #G00702
7.500%.................... 05/01/27 16 17
--------
132
--------
Government National Mortgage Association -- 0.7%
Pool #132781
10.500%................... 11/15/00 14 15
Pool #26857
9.500%.................... 10/15/17 1,908 2,061
--------
2,076
--------
Federal National Mortgage Association -- 1.9%
Pool #36000
6.547%.................... 12/01/05 6,005 6,178
--------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $8,234) .................................................. 8,386
--------
See Accompanying Notes
64
<PAGE>
[GRAPHIC OMITTED]
Portfolio of Investments
Armada Total Return Advantage Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MORTGAGE PASS THROUGH OBLIGATIONS -- 0.1%
Thirty-Seventh FHA Insurance Project
7.430%.................... 05/01/22 $ 447 $ 464
--------
TOTAL MORTGAGE PASS THROUGH OBLIGATIONS
(Cost $445) ................................................. 464
--------
CORPORATE BONDS -- 36.9%
Agriculture -- 1.0%
Cargill
6.150%.................... 02/25/08 3,100 3,133
--------
Autos -- 1.1%
Chrysler Financial
0.000%.................... 01/22/01 3,525 3,521
--------
Banking -- 5.1%
BankAmerica
7.875%.................... 12/01/02 3,600 3,911
Citicorp
7.125%.................... 09/01/05 4,000 4,285
Fleet Financial Group
6.500%.................... 03/15/08 3,275 3,446
First Union National Bank
7.125%.................... 10/15/06 4,400 4,813
--------
16,455
--------
Defense -- 0.8%
Raytheon
5.950%.................... 03/15/01 2,500 2,519
--------
Education -- 0.9%
Harvard University
8.125%.................... 04/15/07 2,400 2,826
--------
Food & Beverage -- 1.1%
Philip Morris Global
7.000%.................... 07/15/05 3,300 3,500
--------
Foreign -- 3.0%
British Telecom
7.000%.................... 05/23/07 1,675 1,853
City of Naples
7.520%.................... 07/15/06 3,040 3,269
Quebec Province
8.625%.................... 01/19/05 3,875 4,430
--------
9,552
--------
Insurance -- 5.3%
Metropolitan Life
7.000%.................... 11/01/05 5,900 6,250
Nationwide
9.875%.................... 02/15/25 4,000 4,750
Prudential
8.100%.................... 07/15/15 2,595 2,955
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Insurance -- Continued)
Safeco Capital I Trust I, Series 144A
8.072%.................... 07/15/37 $2,950 $ 3,039
--------
16,994
--------
Leisure & Entertainment -- 3.3%
News America Holdings
7.375%.................... 10/17/08 6,150 6,632
Time Warner Entertainment
10.150%................... 05/01/12 2,900 3,883
--------
10,515
--------
Machinery -- 1.1%
Applied Material Inc.
7.125%.................... 10/15/17 3,475 3,487
--------
Retail Stores -- 1.1%
May Department Stores
8.300%.................... 07/15/26 2,975 3,403
--------
Specialty Chemicals -- 2.0%
Engelhard
7.000%.................... 08/01/01 6,200 6,495
--------
Technology -- 1.1%
CSC Enterprises
6.500%.................... 11/15/01 3,365 3,468
--------
Telephones & Telecommunication -- 6.3%
Bellsouth Communications
6.300%.................... 12/15/15 3,000 3,160
GTE Northwest
5.550%.................... 10/15/08 2,600 2,603
Sprint Capital
6.875%.................... 11/15/28 5,175 5,453
Telephone & Data Systems
7.000%.................... 08/01/06 5,500 5,720
Worldcom
6.400%.................... 08/15/05 3,100 3,224
--------
20,160
--------
Utilities-Electric -- 2.7%
Consolidated Edison
6.450%.................... 12/01/07 3,250 3,453
Pennsylvania Power and Light
6.125%.................... 05/01/01 3,550 3,608
Puget Sound Energy
6.740%.................... 06/15/18 1,525 1,594
--------
8,655
--------
Utilities-Gas Distribution -- 1.0%
KN Energy
6.450%.................... 03/01/03 3,100 3,131
--------
See Accompanying Notes
65
<PAGE>
[GRAPHIC OMITTED]
Portfolio of Investments
Armada Total Return Advantage Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
Total Corporate Bonds
(Cost $111,519).............................. $117,814
--------
U.S. TREASURY OBLIGATIONS -- 28.8%
U.S. Treasury Bonds -- 19.3%
7.500%............. 11/15/16 $12,975 16,255
8.125%............. 08/15/21 33,270 45,373
--------
61,628
--------
U.S. Treasury Notes -- 9.5%
6.375%............. 08/15/02 6,755 7,140
6.250%............. 02/15/03 9,140 9,681
6.500%............. 10/15/06 4,790 5,308
6.125%............. 08/15/07 7,550 8,232
--------
30,361
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $89,656)............................... 91,989
--------
CASH EQUIVALENT -- 1.3%
Fidelity Domestic Money
Market Fund........................... 4,004 4,004
--------
TOTAL CASH EQUIVALENT
(Cost $4,004)................................ 4,004
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $305,465).............................. $316,382
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.0%.................................. 3,076
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
29,980,519 outstanding shares of
beneficial interest.......................... $302,268
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
372,735 outstanding shares of
beneficial interest.......................... 3,779
Accumulated net realized gain
on investments............................... 2,494
Net unrealized appreciation on investments.... 10,917
--------
TOTAL NET ASSETS -- 100.0%...................... $319,458
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I............................. $10.53
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A................... $10.51
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.51 divide 95.25%)...... $11.03
========
See Accompanying Notes
66
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Total Return Advantage Fund
November 30, 1998
(Unaudited)
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 --------------------------------------------
(Unaudited) 1998 1997
----------------------- ------------------- -------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 10.25 $ 10.25 $ 9.89 $ 9.89 $ 9.88 $ 9.87
-------- ------- -------- ------- -------- -------
Income From Investment Operations
Net investment income................... 0.29 0.28 0.64 0.61 0.67 0.64
Net gain/(loss) on securities
(realized and unrealized)............. 0.28 0.26 0.36 0.36 0.15 0.16
-------- ------- -------- ------- -------- -------
Total from investment operations...... 0.57 0.54 1.00 0.97 0.82 0.80
-------- ------- -------- ------- -------- -------
Less Distributions
Dividends from net investment income.... (0.29) (0.28) (0.64) (0.61) (0.67) (0.64)
Dividends in excess of net
investment income..................... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions from net realized
capital gains......................... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions in excess of net
realized capital gains................ (0.00) (0.00) (0.00) (0.00) (0.14) (0.14)
-------- ------- -------- ------- -------- -------
Total distributions................... (0.29) (0.28) (0.64) (0.61) (0.81) (0.78)
-------- ------- -------- ------- -------- -------
Net asset value, end of period............ $ 10.53 $ 10.51 $ 10.25 $ 10.25 $ 9.89 $ 9.89
======== ======= ======== ======= ======== =======
Total Return.............................. 5.65%/8 5.32%/5,8 10.35% 10.08%/5 8.51% 8.35%/5
Ratios/Supplemental Data
Net assets, end of period (in 000's).... $315,540 $ 3,918 $296,075 $ 640 $259,228 $ 2,186
Ratio of expenses to average net
assets................................ 0.50%/1,4 0.74%/2,4 0.31%/1 0.54%/2 0.16%/1 0.41%/2
Ratio of net investment income to
average net assets.................... 5.61%/1,4 5.34%/2,4 6.29%/1 6.14%/2 6.70%/1 6.46%/2
Portfolio turnover rate................. 68% 68% 170% 170% 169% 169%
<CAPTION>
For the Year Ended May 31,
-------------------------- For the Period
1996 Ended May 31, 1995
------------------ ----------------------
Class I Class A Class I/3 Class A/3
------- ------- --------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period...... $ 10.55 $ 10.54 $ 10.00 $ 10.16
-------- ------- -------- --------
Income From Investment Operations
Net investment income................... 0.70/7 0.62/7 0.65/7 0.49/7
Net gain/(loss) on securities
(realized and unrealized)............. (0.24) (0.22) 0.43 0.40
-------- ------- -------- --------
Total from investment operations...... 0.46 0.40 1.08 0.89
-------- ------- -------- --------
Less Distributions
Dividends from net investment income.... (0.70) (0.62) (0.53) (0.49)
Dividends in excess of net
investment income..................... (0.12) (0.14) (0.00) (0.02)
Distributions from net realized
capital gains......................... (0.31) (0.31) (0.00) (0.00)
Distributions in excess of net
realized capital gains................ (0.00) (0.00) (0.00) (0.00)
-------- ------- -------- --------
Total distributions................... (1.13) (1.07) (0.53) (0.51)
-------- ------- -------- --------
Net asset value, end of period............ $ 9.88 $ 9.87 $ 10.55 $ 10.54
======== ======= ======== ========
Total Return.............................. 4.22% 3.74%/5 12.52%/4,6 12.65%/4,5,6
Ratios/Supplemental Data
Net assets, end of period (in 000's).... $280,401 $ 2,040 $261,403 $ 106
Ratio of expenses to average net
assets................................ 0.13%/1 0.36%/2 0.18%/1,4 0.31%/2,4
Ratio of net investment income to
average net assets.................... 6.67%/1 6.12%/2 7.23%/1,4 6.92%/2,4
Portfolio turnover rate................. 268% 268% 166% 166%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the period and years ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.70% and
5.41%, 0.72% and 5.88%, and 0.71% and 6.15%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Adviser and Custodian for Class I for the years ended May 31, 1996
would have been .69% and 6.11%, respectively. The operating expense ratio and
the net investment income ratio before fee waivers by the Investment Adviser,
Administrator and Custodian for the Class I for the period ended May 31, 1995
would have been .77% and 6.64%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the period and years ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.95% and
5.14%, 0.97% and 5.71%, and 0.96% and 5.91%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for Class A for the year ended May 31, 1996
would have been .89% and 5.59%, respectively. The operating expense ratio and
net investment income ratio before fee waivers by the Investment Adviser,
Administrator and Custodian for Class A for the period ended May 31, 1995
would have been .87% and 6.36%, respectively.
3 Class I and Class A commenced operations on July 7, 1994 and September 6,
1994, respectively.
4 Annualized.
5 Total return excludes sales charge.
6 Total returns have been annualized based upon the period from each Class'
commencement date through May 31, 1995. Gross total returns of Class I and
Class A for the period were 11.22% and 9.14%, respectively.
7 Calculated based upon average shares outstanding.
8 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
67
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 20.1%
Federal Home Loan Mortgage Corporation -- 2.5%
Pool #E31059
8.500%.............. 05/01/06 $ 70 $ 74
Pool #E00164
6.500%.............. 10/01/07 411 419
Pool #252804
8.500%.............. 07/01/08 65 70
Pool #E50893
6.500%.............. 09/01/08 917 937
Series C - 78
9.400%.............. 09/15/08 34 37
Pool #E60894
7.500%.............. 07/01/10 39 41
Pool #E61277
7.500%.............. 09/01/10 129 133
Pool #E20204
6.500%.............. 11/01/10 679 693
Pool #E61976
7.000%.............. 11/01/10 4,960 5,083
Pool #E20206
7.500%.............. 11/01/10 210 217
Pool #E64179
7.500%.............. 05/01/11 476 492
Pool #E64198
7.500%.............. 05/01/11 190 197
Pool #E64229
7.500%.............. 05/01/11 15 16
Pool #E64248
7.500%.............. 05/01/11 865 894
Pool #280417
8.500%.............. 09/01/16 10 11
Pool #141138
7.500%.............. 05/01/17 488 512
Pool #294315
8.500%.............. 06/01/17 14 16
Pool #450074
8.500%.............. 06/01/17 174 186
Pool #219329
9.250%.............. 06/01/23 58 61
Pool #80322
8.000%.............. 07/01/25 3,298 3,430
Pool #483469
6.500%.............. 09/15/28 5,989 6,055
--------
19,574
--------
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Federal National Mortgage Association -- 11.9%
6.000%.............. 08/01/28 $ 2,958 $ 2,925
Government Trust Certificates
Series 1-C
9.250%.............. 11/15/01 1,123 1,168
Discount Note
5.336%.............. 12/10/98 3,700 3,695
Series 1992-106, Class G
7.000%.............. 06/25/99 15 15
Series 1988-03, Class D
9.100%.............. 02/25/02 5 5
Pool #77831
7.500%.............. 12/01/07 150 157
Pool #31592
7.500%.............. 03/01/08 144 150
Pool #190506
6.500%.............. 12/01/08 1,133 1,156
Pool #1125
9.000%.............. 07/01/09 49 52
Pool #35366
8.500%.............. 11/01/09 113 120
Pool #316357
7.000%.............. 07/01/10 1,455 1,494
Pool #210452
9.500%.............. 05/01/18 121 131
Pool #250060
7.500%.............. 06/01/24 6,001 6,199
Pool #250433
7.500%.............. 01/01/26 6,178 6,379
Pool #420621
7.500%.............. 12/01/27 5,050 5,197
Pool #423227
6.000%.............. 07/01/28 1,507 1,489
Pool #435082
6.000%.............. 07/01/28 1,271 1,256
Pool #434223
6.000%.............. 08/01/28 4,998 4,940
Pool #440148
6.500%.............. 08/01/28 19,467 19,625
Pool #446109
7.500%.............. 10/01/28 2,142 2,204
Pool #448509
6.000%.............. 11/01/28 5,000 4,948
Pool #417392
6.500%.............. 11/01/28 25,200 25,389
Pool #441542
7.500%.............. 10/01/29 3,030 3,117
--------
91,811
--------
See Accompanying Notes
68
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
Pool #22374
8.000%.............. 03/15/08 $ 89 $ 95
Pool #9244
8.250%.............. 04/20/17 73 77
Pool #9279
8.250%.............. 07/20/17 134 141
Pool #1388
9.000%.............. 02/20/19 229 244
Pool #164775
9.500%.............. 06/15/19 231 251
Pool #308571
8.500%.............. 05/15/21 115 123
Pool #310780
8.500%.............. 09/15/21 26 29
Pool #303442
8.500%.............. 11/15/21 27 29
Pool #314586
8.500%.............. 11/15/21 262 281
Pool #315728
8.500%.............. 11/15/21 247 264
Pool #36473
8.500%.............. 11/15/21 140 150
Pool #319999
8.500%.............. 07/15/22 155 166
Pool #321786
8.500%.............. 07/15/22 214 228
Pool #332285
8.500%.............. 07/15/22 228 244
Pool #325399
7.500%.............. 08/15/22 13 15
Pool #321563
8.500%.............. 08/15/22 53 57
Pool #304732
7.500%.............. 12/15/22 890 927
Pool #337049
7.500%.............. 04/15/23 552 574
Pool #348665
7.500%.............. 04/15/23 284 296
Pool #337062
7.500%.............. 05/15/23 310 323
Pool #331869
7.500%.............. 06/15/23 394 410
Pool #371437
7.000%.............. 11/15/23 219 226
Pool #451459
7.500%.............. 09/15/27 13,461 13,927
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
Pool #483453
6.500%.............. 09/15/28 $5,988 $ 6,053
Pool #486516
6.500%.............. 09/15/28 9,000 9,098
Pool #482829
6.500%.............. 11/15/28 9,000 9,098
----------
43,326
----------
Student Loan Marketing Association -- 0.1%
Sallie Mae Medium Term Note
7.300%........... 08/01/09 500 575
----------
Total U.S. GOVERNMENT OBLIGATIONS
(Cost $154,082)............................... 155,286
----------
ASSET BACKED SECURITIES -- 10.5%
Equipment Leases -- 0.7%
Case Equipment Loan Trust
Series 1995-A, Class A
7.300%.............. 03/15/02 445 447
ICON, Series 1998-A, Class A (144A)
6.190%.............. 09/15/06 4,644 4,660
----------
5,107
----------
Home Equity -- 6.6%
Advanta Home Equity LN TR
Series 1991-2, Class A
8.800%.............. 06/25/06 1,465 1,488
Champion Home Equity Loan
Series 1997-2, Class M1
6.920%.............. 09/25/29 9,122 9,242
Series 1997-2, Class M2
7.120%.............. 09/25/29 4,715 4,713
First Plus Home Loan Trust,
Series 1997-3, Class M2
7.520%.............. 11/10/23 1,000 1,018
Saxon Asset Securities Trust
Series 1997-2, Class Af7
7.000%.............. 03/25/27 15,552 16,061
Series 1998-4, Class Af4
6.395%.............. 12/08/28 6,600 6,628
The Money Store Home Equity Trust
Series 1995-B, Class A6
7.500%.............. 01/15/26 8,475 8,798
Series 1998-A, Class AV
5.584%.............. 06/15/29 3,390 3,373
----------
51,321
----------
See Accompanying Notes
69
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
ASSET BACKED SECURITIES -- Continued
Miscellaneous -- 2.1%
Export Funding Trust
Series 1995-A, Class A
8.210%.............. 12/29/06 $ 2,468 $ 2,773
Green Tree Financial
Series 1994-8, Class A6
8.900%.............. 04/15/25 11,683 12,837
Turkey Trust
9.625%.............. 05/15/02 514 542
----------
16,152
----------
Student Loan -- 1.1%
Personal Credit Institutions
Series 1997-A, Class A3
5.690%.............. 09/01/07 8,679 8,679
----------
TOTAL ASSET BACKED SECURITIES
(Cost $79,915)............................... 81,259
----------
CORPORATE BONDS -- 22.0%
Aerospace & Defense -- 0.6%
Raytheon
5.700%.............. 11/01/03 4,800 4,806
----------
Banks -- 0.7%
First Union
7.500%.............. 07/15/06 3,250 3,547
Intl. Bank For Recon & Dev.
8.500%.............. 07/19/99 900 920
Toronto - Dominion
7.875%.............. 08/15/04 1,000 1,015
----------
5,482
----------
Building & Construction -- 0.3%
Halliburton
5.625%.............. 12/01/08 2,000 2,020
----------
Chemicals -- 1.6%
AKZO Nobel, 144A
6.000%.............. 11/15/03 1,680 1,694
Lubrizol
5.875%.............. 12/01/08 7,300 7,264
Dow Chemical
9.200%.............. 06/01/10 1,000 1,265
Monsanto
8.130%.............. 12/15/06 2,000 2,320
----------
12,543
----------
Computer Software -- 1.4%
Computer Associates International
6.250%.............. 04/15/03 11,000 10,973
----------
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Electrical Services -- 1.9%
Central Power & Light
6.625%.............. 07/01/05 $ 920 $ 972
Eastern Energy
6.750%.............. 12/01/06 3,000 3,151
Western Resources
7.125%.............. 08/01/09 10,000 10,813
-----------
14,936
-----------
Equity Office Properties -- 1.5%
EOP Operating LP
6.375%.............. 02/15/03 1,500 1,485
6.625%.............. 02/15/05 10,400 10,270
-----------
11,755
-----------
Financial -- 1.8%
Ford Motor Credit
6.000%.............. 01/14/03 13,840 14,186
-----------
Financial Services -- 2.6%
Associates
6.250%.............. 11/01/08 5,000 5,156
Franchise Financial
America
8.250%.............. 10/30/03 4,600 4,692
Prime Property Funding
Series II 144A
6.800%.............. 08/15/02 10,000 9,963
-----------
19,811
-----------
Food & Beverage -- 1.3%
Archer Daniels Midland Industrial
7.500%.............. 03/15/27 6,900 8,090
Kraft
8.500%.............. 02/15/17 1,656 1,714
-----------
9,804
-----------
Gas/Natural Gas -- 1.3%
Williams Companies
6.200%.............. 08/01/02 10,000 10,163
-----------
Insurance -- 0.8%
CIGNA
7.400%.............. 05/15/07 3,000 3,326
Lincoln National
6.500%.............. 03/15/08 2,895 3,014
-----------
6,340
-----------
Leasing & Renting -- 0.8%
First American
8.500%.............. 04/15/12 5,000 5,838
-----------
See Accompanying Notes
70
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Printing & Publishing -- 1.6%
American Greetings
6.100%.............. 08/01/28 $10,390 $ 10,611
Knight-Ridder
8.500%.............. 09/01/01 1,555 1,633
---------
12,244
---------
Railroads -- 0.3%
CSX Transportation
7.540%.............. 03/15/03 2,000 2,118
---------
Retail -- 0.3%
Dillard Dept Store
9.500%.............. 10/15/01 2,000 2,208
---------
Rubber & Plastic -- 1.0%
Armstrong World
6.350%.............. 08/15/03 185 191
6.500%.............. 08/15/05 6,850 7,098
---------
7,289
---------
Telephones & Telecommunication -- 2.2%
Sprint Capital
5.700%.............. 11/15/03 6,500 6,516
6.875%.............. 11/15/28 10,000 10,537
---------
17,053
---------
Total Corporate Bonds
(Cost $164,656) 169,569
---------
MORTGAGE BACKED SECURITIES -- 14.2%
Chase Commercial Mortgage
Securities, Series 1996-2
6.700%.............. 11/19/28 1,481 1,524
GMAC Commercial
Mortgage Securities
Series 1997, C1 Class X
1.581%.............. 07/15/27 18,785 1,744
Housing Securities
Series 1993-G, Class G9
7.500%.............. 01/25/09 5,938 6,018
JP Morgan Commercial
Mortgage Finance
Series 1997-C5 20,698 1,763
Midland Realty Acceptance
Series 1996-C2, Class A1
7.020%.............. 01/25/29 1 1
Par Value
Maturity (000) (000)
-------- ----- -----
MORTGAGE BACKED SECURITIES -- Continued
PNC Mortgage Securities
Series 1998-7, Class 1A5
6.750%.............. 09/25/28 $ 3,000 $ 2,995
Prudential Home Mortgage Securities
Series 1996-7, Class A4
6.750%.............. 06/25/11 1,500 1,516
Prudential Securities Secured
Financing, Series 1998-C1,
Class A1A3
6.350%.............. 09/15/07 10,850 11,079
Residential Accredit Loan
Series 1998-Q57, Class NB4
6.750%.............. 07/25/28 13,659 13,825
Q514, Class AZ
6.500%.............. 10/25/28 8,000 7,960
Residential Asset Securities Trust,
Series 1998-Ks3, Class Ai3
5.910%.............. 08/25/22 8,500 8,452
Series 1997-A5, Class A13
7.750%.............. 07/25/27 10,786 11,024
Residential Funding
Series 1993-S44
5.863%.............. 11/25/23 2,805 2,797
Series 1995-S21
Class A6
7.500%.............. 12/25/25 16,324 16,682
Structured Asset Sales,
Series 1994-5, Class A
7.000%.............. 07/25/24 22,187 22,288
---------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $108,031).............................. 109,668
---------
U.S. TREASURY OBLIGATIONS -- 31.6%
U.S. Treasury Notes -- 18.5%
5.750%.............. 11/15/00 39,250 40,091
5.750%.............. 08/15/03 31,545 32,981
6.500%.............. 10/15/06 62,570 69,340
---------
142,412
---------
U.S. TREASURY BONDS -- 13.1%
6.250%.............. 08/15/23 72,930 82,187
3.625%.............. 04/15/28 19,176 19,105
---------
101,292
---------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $241,444).............................. 243,704
---------
See Accompanying Notes
71
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Bond Fund
November 30, 1998
(Unaudited)
Par Value
(000) (000)
----- -----
CASH EQUIVALENT -- 2.3%
Goldman Sachs Financial Square Government
Money Market Fund.............. $17,972 $ 17,972
--------
TOTAL CASH EQUIVALENT
(Cost $17,972)............................... 17,972
--------
TOTAL INVESTMENTS -- 100.7%
(Cost $766,100).............................. $777,458
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.7%)................................ (5,756)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
73,254,179 outstanding shares of
beneficial interest.......................... 746,933
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
141,098 outstanding shares of
beneficial interest.......................... 1,461
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
39,873 outstanding shares of
beneficial interest.......................... 416
Accumulated net realized gain
on investments............................... 11,571
Net unrealized appreciation on investments.... 11,358
Overdistributed net investment income......... (37)
--------
TOTAL NET ASSETS -- 100.0%...................... $771,702
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I............................. $10.51
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A................... $10.51
========
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($10.51 divide 95.25%)....................... $11.03
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B................... $10.50
========
See Accompanying Notes
72
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Bond Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 ------------------------------------------------------
(Unaudited) 1998 1997/4
------------------------------- ----------------------------- --------------------
Class I Class A Class B Class I Class A Class B/7 Class I Class A/5
------- ------- ------- ------- ------- --------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ............... $ 10.27 $ 10.27 $ 10.26 $ 10.02 $ 10.02 $ 10.35 $ 9.97 $ 9.97
-------- ------- ------- -------- ------- ------- -------- -------
Income From Investment Operations
Net investment income.............. 0.29 0.27 0.34 0.59 0.56 0.47 0.59 0.41
Net gain/(loss) on securities
(realized and unrealized)......... 0.19 0.24 0.14 0.25 0.25 (0.09) 0.13 0.13
-------- ------- ------- -------- ------- ------- -------- -------
Total from investment operations.. 0.48 0.51 0.48 0.84 0.81 0.38 0.72 0.54
-------- ------- ------- -------- ------- ------- -------- -------
Less Distributions
Dividends from net
investment income................. (0.24) (0.27) (0.24) (0.59) (0.56) (0.47) (0.59) (0.41)
Dividends from net realized
capital gains..................... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions in excess of
net realized capital gains........ (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.08) (0.08)
-------- ------- ------- -------- ------- ------- -------- -------
Total distributions............... (0.24) (0.27) (0.24) (0.59) (0.56) (0.47) (0.67) (0.49)
-------- ------- ------- -------- ------- ------- -------- -------
Net asset value, end of period....... $ 10.51 $ 10.51 $ 10.50 $ 10.27 $ 10.27 $ 10.26 $ 10.02 $ 10.02
======== ======= ======= ======== ======= ======= ======== =======
Total Return......................... 5.17%/3 5.05%/3,6 4.68%/3,6 8.55% 8.29%/6 8.36%/2,6 7.41% 7.22%/6
Ratios/Supplemental Data
Net assets, end of period
(in 000's) ...................... $769,800 $1,483 $ 419 $132,620 $ 161 $ 1 $ 91,161 $ 23
Ratio of expenses to average
net assets........................ 0.69%/2 0.94%2 1.63%/2 0.80% 1.05% 1.74% 0.83%/1 1.07%/2
Ratio of net investment income
to average net assets............. 5.44%/2 5.14%2 4.44%/2 5.72% 5.52% 2.71% 5.83%/1 5.64%/2
Portfolio turnover rate............ 190% 190% 190% 220% 220% 220% 96% 96%
<CAPTION>
For the For the For the
Period Ended Year Ended Period Ended
May 31, 1996/4 April 30, 1996/4 April 30, 19954
-------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period.... $ 10.04 $ 10.02 $ 10.00
--------- -------- --------
Income From Investment Operations
Net investment income ................ 0.05 0.64 0.44
Net gain/(loss) on securities
(realized and unrealized)............ (0.07) 0.07 0.02
-------- -------- -------
Total from investment operations..... (0.02) 0.71 0.46
-------- -------- -------
Less Distributions
Dividends from net
investment income.................... (0.05) (0.64) (0.44)
Dividends from net realized
capital gains........................ (0.00) (0.05) (0.00)
Distributions in excess of
net realized capital gains........... (0.00) (0.00) (0.00)
-------- -------- -------
Total distributions.................. (0.05) (0.69) (0.44)
-------- -------- -------
Net asset value, end of period.......... $ 9.97 $ 10.04 $ 10.02
======== ======== =======
Total Return............................ (0.19)%/3,6 7.09%/6 4.75%/3,6
Ratios/Supplemental Data
Net assets, end of period (in 000's).. $ 88,829 $ 89,901 $53,316
Ratio of expenses to average
net assets........................... 0.85%/1,2 0.85%/1 0.85%/1,2
Ratio of net investment income
to average net assets................ 5.88%/1,2 6.20%/1 6.17%/1,2
Portfolio turnover rate............... 2% 94% 172%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers and other service providers for Class I and
the Predecessor Fund for the years ended May 31, 1997, May 31, 1996, April 30,
1996, and April 30, 1995 would have been 0.96% and 5.71%, 1.25% and 5.48%,
1.25% and 5.80%, 1.33% and 5.69%, respectively.
2 Annualized.
3 Returns are for the period indicated and have not been annualized.
4 Activity for the period presented includes that of the Predecessor Fund
through September 6, 1996. The Predecessor Fund commenced operations on August
10, 1994. During 1996, the Predecessor Fund changed its fiscal year-end from
April 30 to May 31.
5 Class A commenced operations on September 11, 1996.
6 Total return excludes sales charge.
7 Class B Shares commenced operations January 6, 1998.
See Accompanying Notes
73
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Intermediate Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- 30.0%
Aerospace & Defense -- 0.7%
Raytheon
5.700% ............ 11/01/03 $ 2,100 $ 2,103
----------
Banking -- 2.1%
Huntington National Bank
7.125% ............ 05/01/03 5,000 5,300
Northern Trust
7.300% ............ 09/15/06 500 539
KeyCorp
7.250% ............ 06/01/05 500 537
----------
6,376
----------
Chemicals -- 1.3%
Akzo Nobel Series 144A
6.000% ............ 11/15/03 500 504
Dow Chemical
9.350% ............ 03/15/02 1,000 1,041
Lubrizol
5.875% ............ 12/01/08 2,550 2,537
----------
4,082
----------
Drugs & Health Care -- 0.8%
American Home Products
6.500% ............ 10/15/02 2,000 2,080
Amgen
6.210% ............ 08/27/03 500 497
----------
2,577
----------
Electrical Services -- 0.7%
Indianapolis Power & Light
6.050% ............ 02/01/04 2,000 2,067
----------
Financial Services -- 11.5%
Associates
5.625% ............ 02/15/01 2,000 2,006
5.750% ............ 11/01/03 2,435 2,475
Associates Coporation of
North America, Senior Notes
7.375% ............ 03/15/02 500 527
Chrysler Financial
5.690% ............ 11/15/01 3,200 3,232
CIT Group
6.375% ............ 12/01/01 2,000 2,045
EOP Operating LP
6.625% ............ 02/15/05 3,190 3,150
Franchise Financial
8.250% ............ 10/30/03 1,825 1,861
General Motors Acceptance
6.625% ............ 05/15/03 300 315
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Financial Services -- Continued
GMAC
7.625% ............ 01/15/03 $ 500 $ 539
7.250% ............ 10/01/05 500 518
Goldman Sachs Group
6.000% ............ 01/14/03 7,850 8,046
Ikon Capital
6.730% ............ 06/15/01 5,000 5,144
Prime Property Funding,
Series II 144A
7.700% ............ 06/10/04 500 555
Prudential
6.800% ............ 08/15/02 5,000 4,981
United States Leasing International
7.250% ............ 09/01/99 500 507
----------
35,901
----------
Gas/Natural Gas -- 1.4%
Northen Illinois Gas
6.450% ............ 08/01/01 1,500 1,545
Williams Companies
6.200% ............ 08/01/02 2,800 2,845
----------
4,390
----------
Insurance -- 1.1%
Aetna Services
6.750% ............ 08/15/01 500 514
Lincoln National
7.625% ............ 07/15/02 300 322
6.500% ............ 03/15/08 2,150 2,239
Saint Paul
6.170% ............ 01/15/01 300 305
----------
3,380
----------
Leasing -- 1.6%
Ryder System
6.600% ............ 11/15/05 4,000 4,060
Hertz
7.000% ............ 05/01/02 1,000 1,029
----------
5,089
----------
Measuring Devices -- 0.8%
Johnson Controls
6.300% ............ 02/01/08 2,500 2,584
----------
Oil Services -- 0.3%
Halliburton
5.625% ............ 12/01/08 1,000 1,010
----------
Petroleum & Fuel Products -- 1.1%
Apache
9.250% ............ 06/01/02 3,200 3,556
----------
See Accompanying Notes
74
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Intermediate Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
CORPORATE BONDS -- Continued
Retail -- 0.9%
Wal-Mart Stores
8.625% ............ 04/01/01 $ 2,500 $ 2,691
----------
Rubber & Plastic -- 1.6%
Armstrong World
6.350% ............ 08/15/03 4,875 5,027
----------
Taxable Municipal Obligation -- 0.1%
Westview School,
Certificate of Participation
6.400% ............ 09/01/05 200 208
----------
Telephones & Telecommunication -- 4.0%
BellSouth Telecom
5.875% ............ 01/15/09 500 517
GTE
6.390% ............ 09/11/00 2,000 2,030
6.460% ............ 04/15/08 2,000 2,113
Sprint Capital
5.700% ............ 11/15/03 7,600 7,619
----------
12,279
----------
TOTAL CORPORATE BONDS
(Cost $91,361) .............................. 93,320
----------
ASSET-BACKED SECURITIES -- 6.7%
Champion Home Equity
Loan Trust
6.490% ............ 01/25/13 7,858 7,912
Housing Securities,
Series 1994-I, Class A15
7.500% ............ 03/25/09 4,427 4,494
ICON Financial, 98-A, Class A
6.190% ............ 09/15/06 2,787 2,796
Sal 98 NC
6.704% ............ 12/22/28 5,560 5,560
----------
TOTAL ASSET-BACKED SECURITIES
(Cost $20,684) .............................. 20,762
----------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 2.0%
Federal Home Loan Bank -- 0.7%
6.400% ............ 12/04/03 500 500
6.135% ............ 12/23/04 1,000 1,055
Series BSO1
5.860% ............ 08/03/01 95 96
Series EGO3
6.565% ............ 01/10/03 500 512
----------
2,163
----------
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Federal Home Loan Mortgage Company -- 0.3%
6.600% ............ 02/02/06 $1,000 $ 1,001
Pool #16-0015
8.250% ............ 06/01/06 24 25
----------
1,026
----------
Federal National Mortgage Association -- 1.0%
7.340% ............ 04/14/04 1,000 1,030
Series M
7.060% ............ 04/24/02 2,000 2,058
----------
3,088
----------
Government National Mortgage Association -- 0.0%
Pool #154047
9.000% ............ 05/15/16 41 43
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $6,174) ............................... 6,320
----------
MORTGAGE BACKED SECURITIES -- 9.9%
Chase Commercial Mortgage
Securities, Series 1996-2
6.700% ............ 11/19/28 2,957 3,043
GE Capital Mortgage Services
6.765% ............ 04/25/15 5,290 5,375
Oakwood Mortgage Investors
6.500% ............ 02/15/28 5,000 5,061
Prudential Home Mortgage
Securities, CMO, Series 1996-7,
Class A4
6.750% ............ 06/25/11 2,500 2,527
Prudential Securities
Secured Financing
6.350% ............ 09/15/07 6,120 6,249
Residential Accredit Loans
6.500% ............ 10/25/28 3,000 2,985
The Money Store Home Equity Trust,
Series 1993-C, CL A-3
5.7590% ........... 10/15/22 5,300 5,339
----------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $30,196) .............................. 30,579
----------
See Accompanying Notes
75
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Intermediate Bond Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. TREASURY OBLIGATIONS -- 47.4%
U.S. Treasury Notes -- 47.4%
6.000% ............ 08/15/99 $ 1,000 $ 1,009
5.750% ............ 11/15/00 23,625 24,131
6.250% ............ 08/31/02 32,306 34,039
6.250% ............ 02/15/03 3,000 3,178
5.750% ............ 08/15/03 35,900 37,534
6.500% ............ 10/15/06 38,170 42,300
3.625% ............ 01/15/08 5,052 5,003
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $146,635) ............................. 147,194
--------
IOETTES -- 1.3%
JP Morgan Commercial Mortgage
Finance, Series 1997-C5 ....... 46,379 3,949
--------
TOTAL IOETTES
(Cost $3,774) ............................... 3,949
--------
CASH EQUIVALENT -- 1.7%
Fidelity Domestic Money
Market Fund ................. 5,431 5,431
--------
TOTAL CASH EQUIVALENT
(Cost $5,431) ............................... 5,431
--------
TOTAL INVESTMENTS -- 99.0%
(Cost $304,255) ............................. $307,555
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.0% ................................. 3,000
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 28,397,022 outstanding shares of
beneficial interest ......................... $299,882
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 344,281 outstanding shares of
beneficial interest ......................... 3,881
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 24,142 outstanding shares of
beneficial interest ......................... 261
Accumulated net realized gain
on investments .............................. 3,055
Net unrealized appreciation on investments ... 3,300
Undistributed net investment income .......... 176
--------
TOTAL NET ASSETS -- 100.0% ..................... $310,555
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................ $10.80
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................. $10.83
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.83 divide 95.25%) ..... $11.37
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B .................. $10.83
========
See Accompanying Notes
76
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Intermediate Bond Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six For the Year Ended May 31,
Months Ended --------------------------------------------------------
November 30, 1998
(Unaudited) 1998 1997
----------------------------------- ------------------------------- ---------------------
Class I Class A Class B Class I Class A Class B4 Class I Class A
------- ------- ------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.................. $ 10.59 $10.63 $10.63 $10.37 $10.42 $10.70 $ 10.30 $10.35
-------- ------ ------ -------- ------ ------ -------- ------
Income From Investment
Operations
Net investment
income................ 0.29 0.27 0.25 0.60 0.58 0.20 0.60 0.57
Net gain/(loss) on
securities (realized
and unrealized)........ 0.21 0.20 0.19 0.22 0.21 (0.07) 0.07 0.07
-------- ------ ------ -------- ------ ------ -------- ------
Total from investment
operations........... 0.50 0.47 0.44 0.82 0.79 0.13 0.67 0.64
-------- ------ ------ -------- ------ ------ -------- ------
Less Distributions
Dividends from net
investment income....... (0.29) (0.27) (0.24) (0.60) (0.58) (0.20) (0.60) (0.57)
Dividends in excess
of net investment
income................. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions from
net realized capital
gains.................. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions in
excess of net
realized capital
gains.................. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
-------- ------ ------ -------- ------ ------ -------- ------
Total distributions... (0.29) (0.27) (0.24) (0.60) (0.58) (0.20) (0.60) (0.57)
-------- ------ ------ -------- ------ ------ -------- ------
Net asset value, end
of period.............. $ 10.80 $10.83 $10.83 $ 10.59 $10.63 $10.63 $ 10.37 $10.42
======== ====== ====== ======== ====== ====== ======== ======
Total Return.............. 4.74%/7 4.51%/4,7 4.16%/4,7 8.09% 7.71%/4 7.39%/4,5 6.63% 6.36%/3
Ratios/Supplemental Data
Net assets, end of
period (in 000's)...... $306,549 $3,742 $ 264 $166,710 $3,288 $ 2 $121,271 $3,720
Ratio of expenses to
average net assets..... 0.59%/1,5 0.84%/2,5 1.51%/3,5 0.65%/1 0.91%/2 1.60%/3,5 0.70% 10.96%/2
Ratio of net investment
income to average net
assets................. 5.32%/1,5 5.06%/2,5 4.36%/3,5 5.71%/1 5.48%/2 3.38%/3,5 5.76%/1 5.52%/2
Portfolio turnover
rate................... 157% 157% 157% 160% 160% 160% 217% 217%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
---------------------------------------------------------------------------
1996 1995 1994
---------------------- --------------------- -------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period .................. $ 0.54 $10.60 $ 10.24 $10.30 $ 10.93 $10.98
-------- ------ ------- ------ ------- ------
Income From Investment
Operations
Net investment
income................. 0.61 0.59 0.63 0.61 0.61 0.58
Net gain/(loss) on
securities (realized
and unrealized)........ (0.22) (0.23) 0.30 0.30 (0.59) (0.58)
-------- ------ ------- ------ ------- ------
Total from investment
operations........... 0.39 0.36 0.93 0.91 0.02 0.00
-------- ------ ------- ------ ------- ------
Less Distributions
Dividends from net
investment income...... (0.61) (0.59) (0.63) (0.61) (0.61) (0.58)
Dividends in excess
of net investment
income................. (0.00) (0.00) (0.00) (0.00) (0.05) (0.05)
Distributions from
net realized capital
gains.................. (0.00) (0.00) (0.00) (0.00) (0.03) (0.03)
Distributions in
excess of net
realized capital
gains.................. (0.02) (0.02) (0.00) (0.00) (0.02) (0.02)
-------- ------ ------- ------ ------- ------
Total distributions... (0.63) (0.61) (0.63) (0.61) (0.71) (0.68)
-------- ------ ------- ------ ------- ------
Net asset value, end
of period.............. $ 10.30 $10.35 $ 10.54 $10.60 $ 10.24 $10.30
======== ====== ======= ====== ======= ======
Total Return.............. 3.79% 3.44%/3 9.55% 9.26%/3 0.00% (.23)%/3
Ratios/Supplemental Data
Net assets, end of
period (in 000's)...... $111,240 $6,216 $88,047 $5,527 $95,907 $5,480
Ratio of expenses to
average net assets..... 0.80%/1 1.04%/2 0.85%/1 1.09%/2 0.83% 1.08%
Ratio of net investment
income to average net
assets................. 5.52%/2 5.78%/1 5.50%/2 6.24%/1 5.95%/2 5.59%
Portfolio turnover
rate................... 217% 45% 45% 42% 42% 34%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the period and years ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.64% and
5.17%, 0.80% and 5.56%, and 0.79% and 5.66%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Custodian for Class I for the years ended May 31, 1996 and 1995 would have
been .82% and 5.76% and .86% and 6.23%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the period and years ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.99% and
4.91%, 1.06% and 5.33%, and 1.05% and 5.44%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Custodian for Class A for the years ended May 31, 1996 and 1995 would have
been 1.06% and 5.48% and 1.10% and 5.94%, respectively.
3 The operating expense ratio and net investment income ratio before fee waivers
by the Investment Advisers for Class B for the periods ended November 30, 1998
and May 31, 1998 would have been 1.63% and 4.23%, and 1.49% and 3.49%,
respectively.
4 Total return excludes sales charge.
5 Annualized.
6 Class B Shares commenced operations January 6, 1998.
7 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
77
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada GNMA Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 84.4%
Federal National Mortgage Association -- 2.7%
7.000% ............. 11/01/10 $ 492 $ 506
6.500% ............. 12/01/12 1,809 1,838
--------
2,344
--------
Government National Mortgage Association -- 81.7%
Pool #5147
7.250% ............. 11/15/04 129 135
Pool #486468
7.000% ............. 08/15/08 3,962 4,062
Pool #90069
9.000% ............. 05/15/09 55 59
Pool #90223
9.000% ............. 05/15/09 64 68
Pool #90250
9.000% ............. 05/15/09 74 80
Pool #90332
9.000% ............. 05/15/09 32 35
Pool #90626
9.000% ............. 05/15/09 64 69
Pool #90923
9.000% ............. 05/15/09 119 127
Pool #90337
9.000% ............. 06/15/09 61 65
Pool #419305
7.000% ............. 12/15/10 1,546 1,599
Pool #780807
7.000% ............. 06/15/11 2,269 2,347
Pool #60456
11.500% ............. 01/15/13 30 35
Pool #348356
7.500% ............. 06/15/13 182 189
Pool #162246
9.000% ............. 06/15/16 27 30
Pool #608
9.000% ............. 08/20/16 1,097 1,168
Pool #200669
8.500% ............. 01/15/17 130 139
Pool #183426
8.500% ............. 02/15/17 73 79
Pool #206979
8.500% ............. 02/15/17 60 64
Pool #210565
8.000% ............. 03/15/17 13 15
Pool #203154
8.500% ............. 03/15/17 76 82
Pool #212306
8.500% ............. 03/15/17 66 71
Pool #208540
8.000% ............. 04/15/17 69 73
Pool #202955
8.500% ............. 04/15/17 82 88
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
Pool #228869
8.500% ............. 04/15/17 $1,012 $ 1,081
Pool #199649
8.000% ............. 05/15/17 35 37
Pool #202671
8.000% ............. 05/15/17 21 22
Pool #216632
8.500% ............. 05/15/17 40 44
Pool #209632
9.000% ............. 05/15/17 73 79
Pool #220950
9.000% ............. 06/15/17 347 372
Pool #213458
8.000% ............. 07/15/17 63 67
Pool #231935
9.000% ............. 08/15/17 130 140
Pool #780048
8.500% ............. 11/15/17 322 341
Pool #289354
9.000% ............. 07/15/20 176 189
Pool #301286
8.500% ............. 04/15/21 253 271
Pool #302597
8.500% ............. 05/15/21 20 22
Pool #248132
8.500% ............. 06/15/21 188 201
Pool #300698
9.000% ............. 06/15/21 307 329
Pool #312919
8.500% ............. 11/15/21 335 358
Pool #314292
8.500% ............. 11/15/21 198 212
Pool #316989
8.500% ............. 12/15/21 83 89
Pool #303772
8.500% ............. 02/15/22 157 168
Pool #327085
7.500% ............. 05/15/22 30 31
Pool #333977
7.500% ............. 09/15/22 65 68
Pool #334116
7.500% ............. 10/15/22 213 222
Pool #336541
7.500% ............. 10/15/22 38 40
Pool #320229
7.500% ............. 12/12/22 224 234
Pool #340307
7.500% ............. 02/15/23 245 256
Pool #4280
8.500% ............. 02/15/23 2,477 2,638
See Accompanying Notes
78
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada GNMA Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
Pool #329620
7.500% ............. 04/15/23 $2,771 $2,882
Pool #348778
7.500% ............. 04/15/23 308 320
Pool #352189
7.500% ............. 04/15/23 19 21
Pool #352217
7.500% ............. 04/15/23 5,055 5,258
Pool #340792
7.500% ............. 05/15/23 23 24
Pool #354106
7.500% ............. 05/15/23 40 43
Pool #338766
7.500% ............. 06/15/23 268 279
Pool #266878
7.500% ............. 07/15/23 387 403
Pool #352143
7.500% ............. 07/15/23 22 24
Pool #352144
7.500% ............. 07/15/23 295 307
Pool #353185
7.500% ............. 07/15/23 3,362 3,477
Pool #359600
7.500% ............. 07/15/23 67 70
Pool #364258
7.500% ............. 07/15/23 138 143
Pool #352724
7.500% ............. 08/15/23 132 138
Pool #357235
7.500% ............. 10/15/23 557 579
Pool #358845
7.500% ............. 10/15/23 168 175
Pool #362619
7.500% ............. 10/15/23 336 349
Pool #370019
7.500% ............. 10/15/23 121 127
Pool #358308
7.500% ............. 01/15/24 279 290
Pool #374876
7.500% ............. 01/15/24 285 296
Pool #369696
7.500% ............. 02/15/24 187 194
Pool #388741
7.500% ............. 04/15/24 242 252
Pool #384077
8.000% ............. 04/15/24 540 565
Pool #385654
8.000% ............. 04/15/24 722 755
Pool #353023
7.500% ............. 06/15/24 249 259
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Government National Mortgage Association -- Continued
Pool #371816
7.500% ............. 06/15/24 $ 113 $ 118
Pool #32767
9.000% ............. 11/15/24 2,059 2,222
Pool #412760
8.750% ............. 06/15/25 413 441
Pool #780618
8.000% ............. 02/01/26 1,930 2,011
Pool #428443
7.500% ............. 05/15/26 2,666 2,767
Pool #412663
8.000% ............. 09/15/26 3,388 3,538
Pool #427794
7.000% ............. 01/15/28 5,934 6,083
Pool #462641
6.000% ............. 07/15/28 2,987 2,963
Pool #433881
6.500% ............. 07/15/28 317 321
Pool #450934
6.500% ............. 07/15/28 630 637
Pool #466002
6.500% ............. 07/15/28 757 765
Pool #476113
6.500% ............. 07/15/28 2,104 2,128
Pool #478016
6.500% ............. 07/15/28 1,479 1,496
Pool #480411
6.500% ............. 07/15/28 669 676
Pool #480412
6.500% ............. 07/15/28 576 583
Pool #480451
6.500% ............. 07/15/28 2,332 2,358
Pool #465549
6.500% ............. 08/15/28 1,594 1,612
Pool #446699
6.000% ............. 10/15/28 1,496 1,484
Pool #2673
6.500% ............. 11/20/28 3,600 3,624
--------
71,247
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $72,155) .............................. 73,591
--------
ASSET BACKED SECURITIES -- 4.5%
First USA Credit Mastercard Trust
5.836% ............. 02/10/06 1,000 996
The Money Store Trust,
Series 1998-A
5.584% ............. 06/15/29 2,966 2,951
--------
See Accompanying Notes
79
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada GNMA Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
TOTAL ASSET BACKED SECURITIES
(Cost $3,971) ............................... $ 3,947
-------
PRIVATE LABEL MORTGAGE BACKED
SECURITIES -- 5.9%
JP Morgan Commercial Mortgage
Finance, Series 1997-C5
1.550% ............. 09/15/29 $25,810 2,198
Residential Funding Mortgage
Securities I, Series 1995-S21,
Class A6
7.500% ............. 12/25/25 2,910 2,974
--------
Total Private Label Mortgage
Backed Securities
(Cost $5,297) ............................... 5,172
-------
U.S. TREASURY OBLIGATION -- 1.2%
U.S. Treasury Note
5.750% ............. 11/15/00 1,000 1,021
-------
TOTAL U.S. TREASURY OBLIGATION
(Cost $1,010) ............................... 1,021
-------
CASH EQUIVALENT -- 3.5%
Goldman Sachs Financial Square Government
Money Market Fund ............. 3,066 3,066
-------
TOTAL CASH EQUIVALENT
(Cost $3,066) ............................... 3,066
-------
TOTAL INVESTMENTS -- 99.5%
(Cost $85,499) .............................. $86,797
=======
Value
(000)
-----
OTHER ASSETS AND LIABILITIES,
NET -- 0.5% ................................. $ 407
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 8,272,564 outstanding shares of
beneficial interest ......................... 84,051
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 111,783 outstanding shares of
beneficial interest ......................... 1,155
Accumulated net realized gain
on investments .............................. 588
Net unrealized appreciation on investments ... 1,298
Undistributed net investment income .......... 112
-------
TOTAL NET ASSETS -- 100.0% ..................... $87,204
=======
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ........................ $10.40
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................. $10.40
=======
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($10.40 divide 95.25%) ...................... $10.92
=======
See Accompanying Notes
80
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada GNMA Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 --------------------------------------------
(Unaudited) 1998 1997/4
----------------------- ------------------ ---------------------
Class I Class A Class I Class A Class I Class A/5
------- ----------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 10.36 $10.36 $ 10.15 $10.15 $ 10.03 $10.02
------- ------ ------- ------ ------- ------
Income From Investment Operations
Net investment income ..................... 0.30 0.24 0.61 0.58 0.65 0.45
Net gain/(loss) on securities
(realized and unrealized) ................ 0.02 0.07 0.31 0.31 0.22 0.23
------- ------ ------- ------ ------- ------
Total from investment operations ......... 0.32 0.31 0.92 0.89 0.87 0.68
------- ------ ------- ------ ------- ------
Less Distributions
Dividends from net investment income ...... (0.28) (0.27) (0.61) (0.58) (0.65) (0.45)
Dividends from net realized capital gains.. (0.00) (0.00) (0.10) (0.10) (0.01) (0.01)
Distributions in excess of net
realized capital gains ................... (0.00) (0.00) (0.00) (0.00) (0.09) (0.09)
------- ------ ------- ------ ------- ------
Total distributions ...................... (0.28) (0.27) (0.71) (0.68) (0.75) (0.55)
------- ------ ------- ------ ------- ------
Net asset value, end of period .............. $ 10.40 $10.40 $ 10.36 $10.36 $ 10.15 $10.15
======= ====== ======= ====== ======= ======
Total Return ................................ 3.16%/3 3.03%/3,6 9.17% 8.90%/6 9.03% 8.83%/6
Ratios/Supplemental Data
Net assets, end of period (in 000's) ...... $86,041 $1,163 $83,624 $ 549 $64,501 $ 128
Ratio of expenses to average net assets ... 0.78%/2 1.03%/2 0.84% 1.09% 0.86%/1 1.12%/2
Ratio of net investment income to average
net assets ............................... 5.85%/2 5.75%/2 5.83% 5.54% 6.45%/1 6.17%/2
Portfolio turnover rate ................... 53% 53% 291% 291% 57% 57%
<CAPTION>
For the For the For the
Period Ended Year Ended Period Ended
May 31, 1996/4 April 30, 1996/4 April 30, 1995/4
-------------- ---------------- ----------------
<S> <C> <C> <C>
Net asset value, beginning of period ........ $ 10.12 $ 10.16 $ 10.00
------- ------- -------
Income From Investment Operations
Net investment income ..................... 0.05 0.66 0.48
Net gain/(loss) on securities
(realized and unrealized) ................ (0.09) 0.14 0.16
------- ------- -------
Total from investment operations ......... (0.04) 0.80 0.64
------- ------- -------
Less Distributions
Dividends from net investment income ...... (0.05) (0.66) (0.48)
Dividends from net realized capital gains.. (0.00) (0.18) (0.00)
Distributions in excess of net
realized capital gains ................... (0.00) (0.00) (0.00)
------- ------- -------
Total distributions ...................... (0.05) (0.84) (0.48)
------- ------- -------
Net asset value, end of period .............. $ 10.03 $ 10.12 $ 10.16
======= ======= =======
Total Return ................................ (0.35)%/3,6 7.97%/6 6.61%/3,6
Ratios/Supplemental Data
Net assets, end of period (in 000's) ...... $60,532 $62,161 $42,212
Ratio of expenses to average net assets ... 0.85%/1,2 0.85%/1 0.85%/1,2
Ratio of net investment income to average
net assets ............................... 6.33%/1,2 6.30%/1 6.68%/1,2
Portfolio turnover rate ................... 1% 149% 226%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers for Class I and the Predecessor Fund for the year ended May 31, 1997,
for the period ended May 31, 1996, for the year ended April 30, 1996 and the
period ended April 30, 1995 would have been 1.01% and 6.30%, 1.28% and 5.90%,
1.29% and 5.86%, and 1.40% and 6.13%, respectively.
2 Annualized.
3 Returns are for the period indicated and have not been annualized.
4 Activity for the period presented includes that of the Predecessor Fund
through September 6, 1996. The Predecessor Fund commenced operations on August
10, 1994. During 1996, the Predecessor Fund changed its fiscal year-end from
April 30 to May 31.
5 Class A commenced operations on September 11, 1996.
6 Total return excludes sales charge.
See Accompanying Notes
81
<PAGE>
[GRAPHIC OMITTED]
Portfolio of Investments
Armada Enhanced Income Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
ASSET BACKED SECURITIES (A) -- 37.6%
Auto -- 4.3%
AESOP Funding 1997-1 A1
6.220% ............. 10/20/01 $ 915 $ 930
Nafco Auto Trust 3
6.500% ............. 06/20/02 265 267
World Omni Automobile Lease
Series 1997-A, Class A3
6.850% ............. 06/25/03 598 610
Series 1998-1 A3
5.962% ............. 08/14/01 1,410 1,427
--------
3,234
--------
Credit Cards -- 7.0%
Citibank Credit Card
Master Trust I
Series 1996-1, Class A
0.000% ............. 02/07/03 1,260 1,126
Residential Accredit Loans, Inc.
6.500% ............. 10/25/28 760 756
Sears Credit Account
Master Trust, Series 1996-4, Class A
6.450% ............. 10/16/06 790 806
Standard Credit Card
Master Trust,
Pool #95-3 A
7.850% ............. 02/07/02 2,450 2,520
--------
5,208
--------
Home Equity Loan -- 4.7%
Champion Home Equity Loan Trust
8.120% ............. 09/25/01 6,000 1,215
GE Capital Mortgage
Services, Inc. 1997-HE4
6.765% ............. 04/25/15 1,240 1,260
Sal 98 NC-7
6.704% ............. 12/22/28 1,000 1,000
--------
3,475
--------
Other -- 21.6%
Capital Equipment Receivables
6.190% ............. 02/15/02 2,855 2,907
Copelco Capital Funding
Series 1997-A Class A4
6.470% ............. 04/20/05 990 1,018
Green Tree Financial
Series 1995-1, Class A5
8.400% ............. 06/15/25 3,205 3,317
ICON 98-A Class A
6.190% ............. 09/15/06 2,415 2,423
Met Life Equity Trust
6.850% ............. 05/20/08 910 944
Navstar B Cl-A4
6.300% ............. 08/15/04 4,060 4,122
Par Value
Maturity (000) (000)
-------- ----- -----
ASSET BACKED SECURITIES -- Continued
PNC Student Loan Trust I
Series 1997-2, Class A4
6.446% ............. 01/25/02 $ 915 $ 938
Small Business Administration
Pool #503115
9.475% ............. 04/25/09 371 401
--------
16,070
--------
TOTAL ASSET BACKED SECURITIES
(Cost $27,769) .............................. 27,987
--------
CORPORATE BONDS -- 14.0%
Aircraft Engines & Engine Parts -- 1.1%
Allied Signal
0.000% ............. 03/10/99 800 788
--------
Euro Bond -- 2.5%
Hydro Quebec
5.750% ............. 07/31/02 1,850 1,850
--------
Finance -- 1.3%
Case Credit
6.120% ............. 08/01/01 1,000 990
--------
Industrial -- 4.3%
CSC Enterprises
6.500% ............. 11/15/01 1,100 1,101
Monsanto
7.090% ............. 12/15/00 960 993
Raytheon
5.950% ............. 03/15/01 1,100 1,108
--------
3,202
--------
Other -- 1.1%
Akzo Nobel
6.000% ............. 11/15/03 800 807
--------
Photographic Equipment & Supplies -- 2.3%
Xerox
5.563% ............. 10/23/01 1,670 1,672
--------
Retail Stores -- 1.4%
Sears MTN
9.750% ............. 03/21/00 1,000 1,056
--------
TOTAL CORPORATE BONDS
(Cost $11,281) .............................. 10,365
--------
COLLATERALIZED MORTGAGE OBLIGATIONS -- 6.9%
DCMT Series 1998-4A
5.750% ............. 10/16/03 1,060 1,070
Evans Withycombe Finance Trust
7.980% ............. 08/01/01 1,395 1,495
First Union
8.125% ............. 06/24/02 1,400 1,519
Ford Motor Credit
6.550% ............. 09/10/02 1,000 1,035
See Accompanying Notes
82
<PAGE>
[GRAPHIC OMITTED]
Portfolio of Investments
Armada Enhanced Income Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
COLLATERALIZED MORTGAGE
OBLIGATIONS -- CONTINUED
MLMI 98 G1
7.110% ............. 08/25/27 $ 27 $ 28
--------
TOTAL COLLATERALIZED
MORTGAGE OBLIGATIONS
(Cost $5,029) ............................... 5,147
--------
MORTGAGE BACKED SECURITIES -- 7.4%
Countrywide Home Loans
Series 1997-8 Class A2
6.750% ............. 01/25/28 2,910 2,928
Residential Asset Securitization
Trust Series 1997-A1 Class A1
7.000% ............. 03/25/27 2,603 2,602
--------
TOTAL MORTGAGE BACKED SECURITIES
(Cost $4,527) ............................... 5,530
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.8%
FHLMC
7.500% ............. 05/01/03 4 4
FNMA Pool #426798
7.500% ............. 07/01/08 2,014 2,072
FNMA Series 1997-26, Class E
5.000% ............. 11/18/20 3,000 2,966
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,012) ............................... 5,042
--------
U.S. TREASURY NOTES -- 24.6%
5.625% ............. 10/31/99 6,240 6,292
5.750% ............. 11/15/00 3,500 3,575
6.250% ............. 08/31/02 5,975 6,296
5.750% ............. 08/15/03 2,000 2,090
--------
TOTAL U.S. TREASURY NOTES
(Cost $18,267) .............................. 18,253
--------
CASH EQUIVALENT -- 2.2%
Fidelity Domestic Money
Market Fund ................... 1,660 1,660
--------
TOTAL CASH EQUIVALENT
(Cost $1,660) ............................... 1,660
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $73,545) .............................. $ 73,984
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.5% ................................. 394
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 7,299,511 outstanding shares of
beneficial interest ......................... $ 73,096
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 38,024 outstanding shares of
beneficial interest ......................... 389
Accumulated net realized gain
on investments .............................. 469
Net unrealized appreciation on investments ... 439
Overdistributed net investment income ........ (15)
--------
TOTAL NET ASSETS -- 100.0% ..................... $ 74,378
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ........................ $ 10.14
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................. $ 10.17
========
MAXIMUM OFFERING PRICE
PER SHARE -- CLASS A
($10.17 divide 97.25%) ...................... $ 10.46
========
- --------------
(A) Maturity dates represent weighted average lives of the underlying
obligations.
FHLMC -- Federal Home Loan Mortgage Corporation
FNMA -- Federal National Mortgage Association
MTN -- Medium Term Note
See Accompanying Notes
83
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Enhanced Income Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 -----------------------------------------------------
(Unaudited) 1998 1997
----------------------- ----------------------- ----------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period......................... $ 10.06 $ 10.08 $ 9.99 $ 10.00 $ 10.01 $10.02
------- ------- -------- -------- ------- ------
Income From Investment Operations
Net investment income............ 0.28 0.28 0.57 0.57 0.58 0.57
Net gain/(loss) on securities
(realized and unrealized)..... 0.08 0.09 0.08 0.09 0.01 0.01
------- ------- -------- -------- ------- ------
Total from investment
operations..................... 0.36 0.37 0.65 0.66 0.59 0.58
------- ------- -------- -------- ------- ------
Less Distributions
Dividends from net
investment income............... (0.28) (0.28) (0.57) (0.57) (0.58) (0.57)
Dividends in excess of net
investment income............... (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions of net realized
capital gains................... (0.00) (0.00) (0.01) (0.01) (0.03) (0.03)
------- ------- -------- -------- ------- ------
Total distributions............. (0.28) (0.28) (0.58) (0.58) (0.61) (0.60)
------- ------- -------- -------- ------- ------
Net asset value, end of period..... $ 10.14 $ 10.17 $ 10.06 $ 10.08 $ 9.99 $10.00
======= ======= ======== ======== ======= ======
Total Return....................... 3.65%/8 3.70%/5,8 6.68% 6.68%/5 6.02% 5.91%/5
Ratios/Supplemental Data
Net assets, end of
period (in 000's)............... $73,991 $ 387 $ 71,888 $ 559 $61,031 $2,051
Ratio of expenses to average
net assets...................... 0.41%/1,4 0.51%/2,4 0.33%/1 0.41%/2 0.21%/1 0.31%/2
Ratio of net investment income
to average net assets........... 5.49%/1,4 5.39%/2,4 5.69%/1 5.65%/2 5.74%/1 5.63%/2
Portfolio turnover rate.......... 115% 115% 135% 135% 225% 225%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
-------------------------- For the Period Ended
1996 Ended May 31, 1995
-------------------------- -------------------------
Class I Class A Class I/3 Class A/3
------- ------- --------- --------
<S> <C> <C> <C> <C>
Net asset value, beginning of period............ $ 10.16 $ 10.18 $ 10.00 $ 10.10
------- -------- ------- -------
Income From Investment Operations
Net investment income......................... 0.58 0.56 0.51/7 0.43/7
Net gain/(loss) on securities
(realized and unrealized).................. (0.05) (0.05) 0.06 0.06
------- -------- ------ -------
Total from investment operations............. 0.53 0.51 0.57 0.49
------- -------- ------ -------
Less Distributions
Dividends from net
investment income............................ (0.58) (0.56) (0.41) (0.41)
Dividends in excess of net
investment income............................ (0.10) (0.11) (0.00) (0.00)
Distributions of net realized
capital gains................................ (0.00) (0.00) (0.00) (0.00)
------- -------- ------- -------
Total distributions.......................... (0.68) (0.67) (0.41) (0.41)
------- -------- ------- -------
Net asset value, end of period.................. $ 10.01 $ 10.02 $ 10.16 $ 10.18
======= ======== ======= =======
Total Return.................................... 5.36% 5.13%/5 6.54%/4,6 6.84%/4,5,6
Ratios/Supplemental Data
Net assets, end of period (in 000's).......... $66,918 $ 1,718 $ 60,467 $ 2,547
Ratio of expenses to average
net assets................................... 0.23%/1 0.33%/2 0.21%/1,4 0.32%/2,4
Ratio of net investment income
to average net assets........................ 5.72%/1 5.55%/2 5.70%/1,4 5.89%/2,4
Portfolio turnover rate....................... 98% 98% 36% 36%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class I for the periods ended November
30, 1998, May 31, 1998 and May 31, 1997 would have been .66% and 5.24%, .69%
and 5.33%, and .66% and 5.29%, respectively. The operating expense ratio and
net investment income ratio before fee waivers by the Investment Adviser and
Custodian for Class I for the year ended May 31, 1996 would have been .70% and
5.25%, respectively. The operating expense ratio and the net investment income
ratio before fee waivers by the Investment Adviser, Administrator, and
Custodian for Class I for the period ended May 31, 1995 would have been .71%
and 5.20%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class A for the periods ended November
30, 1998, May 31, 1998 and May 31, 1997 would have been .76% and 5.14%, .80%
and 5.26%, and 0.75% and 5.18%, respectively. The operating expense ratio and
net investment income ratio before fee waivers by the Investment Adviser and
Custodian for Class A for the year ended May 31, 1996 would have been .80% and
5.08%, respectively. The operating expense ratio and the net investment income
ratio before fee waivers by the Investment Adviser, Administrator, and
Custodian for Class A for the period ended May 31, 1995 would have been .79%
and 5.42%, respectively.
3 Class I and Class A commenced operations on July 7, 1994 and September 9,
1994, respectively.
4 Annualized.
5 Total return excludes sales charge.
6 Total returns have been annualized based upon the period from each Class'
commencement date through May 31, 1995. Gross total returns of the Class I and
Class A for the period were 5.87% and 4.92%, respectively.
7 Calculated based upon average shares outstanding.
8 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
84
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 97.9%
Ohio -- 97.5%
Akron Economic Development
Revenue Bond
5.750% ............. 12/01/09 $1,680 $ 1,886
6.000% ............. 12/01/12 935 1,073
Akron GO
10.500% ............. 12/01/99 100 107
6.000% ............. 12/01/12 1,000 1,142
Akron Sewer System Revenue Bond
5.650% ............. 12/01/08 560 617
5.500% ............. 12/01/11 1,035 1,137
Akron Waterworks GO
5.150% ............. 03/01/01 500 516
4.900% ............. 03/01/08 1,500 1,567
Allen County GO
4.950% ............. 12/01/04 500 526
Archbold Local School District GO
Prerefunded 12/01/98 @ 102
(MBIA)
7.375% ............. 12/01/11 100 102
Ashland City School District GO
4.950% ............. 12/01/07 345 364
5.000% ............. 12/01/08 250 264
5.100% ............. 12/01/09 245 260
Avon Local School District GO
5.800% ............. 12/01/12 1,000 1,102
Bay Village City School District GO
Prerefunded 12/01/00 @ 102
7.350% ............. 12/01/11 200 219
Beavercreek Local School District GO
5.250% ............. 12/01/07 1,130 1,226
Berea GO
7.000% ............. 12/01/99 200 207
7.000% ............. 12/01/99 200 207
Big Walnut Local School District (A)
6.900% ............. 06/01/00 235 247
7.000% ............. 06/01/01 220 238
Bowling Green City School District
GO, Prerefunded 12/01/99 @ 102
7.000% ............. 12/01/02 260 275
Brown County GO
5.200% ............. 12/01/04 455 485
Butler County Sewer Systems
Revenue Bond (Ambac)
6.000% ............. 12/01/04 500 547
4.600% ............. 12/01/09 1,540 1,577
4.600% ............. 12/01/10 1,520 1,539
Butler County Transportation
Revenue Bond
5.500% ............. 04/01/09 1,150 1,261
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Canton City School District GO
5.000% ............. 12/01/12 $1,000 $ 1,035
Celina City School District GO
5.250% ............. 12/01/20 1,750 1,781
Centerville GO
5.650% ............. 12/01/18 500 529
Centerville City School District GO
5.500% ............. 12/01/07 500 551
Cincinnati City School District GO
7.100% ............. 12/01/98 100 100
Cincinnati GO
5.250% ............. 12/01/98 250 250
5.375% ............. 12/01/99 250 256
Cincinnati Waterworks
Revenue Bond
7.000% ............. 12/01/98 100 100
Clermont County, Hospital
Facility Revenue Bond,
Mercy Healthcare,
Prerefunded 09/01/99 @ 102
(AMBAC)
7.500% ............. 09/01/19 770 811
Clermont County, Waterworks
Revenue Bond
5.300% ............. 12/01/05 500 536
Cleveland Electric Illumination Company
2.900% ............. 03/10/99 1,000 1,000
Cleveland Heights GO
5.400% ............. 12/01/00 900 934
Cleveland Regional Sewer
District Revenue Bond,
Prerefunded 05/15/04 @ 100
6.750% ............. 04/01/07 600 682
Cleveland Waterworks
Revenue Bond, First Mortgage,
Class A, Prerefunded 01/01/02 @
102 (AMBAC)
6.500% ............. 01/01/21 1,000 1,100
Series 6
5.400% ............. 01/01/06 500 539
Columbus City School District GO,
Prerefunded 12/01/00 @ 102 (FGIC)
7.000% ............. 12/01/11 100 109
6.650% ............. 12/01/12 900 1,014
Prerefunded 12/01/99 @ 102
(AMBAC)
6.950% ............. 12/01/02 100 106
7.050% ............. 12/01/08 500 529
See Accompanying Notes
85
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Columbus GO
5.250% ............. 05/01/02 $1,000 $1,051
5.300% ............. 05/01/03 1,000 1,062
5.050% ............. 09/15/03 250 264
5.200% ............. 07/01/07 250 265
5.250% ............. 05/15/08 1,000 1,090
Columbus Sewer Revenue Bond
6.200% ............. 06/01/04 1,500 1,639
5.050% ............. 06/15/05 1,000 1,066
Columbus Water System
Revenue Bond
5.800% ............. 02/15/01 500 524
6.000% ............. 11/01/02 330 356
Cuyahoga County GO
5.650% ............. 05/15/18 600 658
Prerefunded 10/01/99 @ 102
6.900% ............. 10/01/03 600 631
Prerefunded 10/01/01 @ 102
7.000% ............. 10/01/13 100 111
Cuyahoga County Hospital
Facilities Revenue Bond,
Cleveland Clinic Foundation,
6.000% ............. 11/15/03 890 966
6.125% ............. 11/15/04 840 915
Series 1996-A (A)
3.150% ............. 12/07/98 3,100 3,100
University Hospital System
Health Project,
Series A
6.000% ............. 01/15/06 1,000 1,112
5.250% ............. 01/15/08 2,000 2,142
Series B
6.000% ............. 01/15/03 400 430
Cuyahoga Falls Ohio GO
5.250% ............. 12/01/17 2,500 2,569
Dayton Airport Revenue Bond
5.400% ............. 12/01/06 1,000 1,087
Dayton Water & Sewer
Revenue Bond
6.600% ............. 12/01/02 100 102
Delaware City School District GO
5.250% ............. 12/01/06 770 831
Delaware County GO
6.125% ............. 04/01/00 500 517
5.250% ............. 12/01/06 500 542
Delaware County Sewer
Revenue Bond
5.450% ............. 12/01/08 250 272
Par Value
Maturity (000) (000)
-------- ----- -----
Delphos Sewer System
Management Revenue Bond,
Prerefunded 09/01/00 @ 102 (FSA)
7.200% ............. 09/01/10 $ 200 $ 216
Dublin City School District GO
0.000% ............. 12/01/10 2,455 1,442
Euclid GO
Prerefunded 12/01/99 @ 102
7.375% ............. 12/01/09 450 477
Forest Hills Local School District GO
6.000% ............. 12/01/08 1,210 1,382
6.000% ............. 12/01/09 830 952
Franklin County Convention
Facilities Authority Tax and Lease
Revenue Anticipation Bond
6.700% ............. 12/01/99 500 518
5.850% ............. 12/01/19 1,000 1,059
Franklin County GO
5.050% ............. 12/01/05 2,000 2,132
5.450% ............. 12/01/09 1,000 1,071
Prerefunded 12/01/01 @ 102
6.000% ............. 12/01/03 500 542
6.300% ............. 12/01/09 250 273
Franklin County Hospital
Revenue Bond,
Childrens Hospital
6.000% ............. 11/01/06 1,035 1,153
Holy Cross Health System
5.875% ............. 06/01/21 2,000 2,165
Riverside United Hospital Project,
Prerefunded 05/15/00 @ 102
7.125% ............. 05/15/05 1,000 1,074
7.600% ............. 05/15/20 1,500 1,620
U.S. Health Project
4.500% ............. 12/01/20 1,000 1,012
Franklin County GO
6.500% ............. 09/01/99 100 102
Gahanna-Jefferson City
School District GO
5.400% ............. 12/01/04 280 302
Granville Local School District GO
4.650% ............. 12/01/05 500 519
Greene County Water Works
Systems Revenue Bond
5.300% ............. 12/01/05 500 536
Hamilton County GO
5.750% ............. 12/01/01 250 265
5.000% ............. 12/01/08 675 707
5.125% ............. 12/01/08 1,000 1,084
5.100% ............. 12/01/11 1,025 1,067
See Accompanying Notes
86
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Hamilton County Sewer
System Revenue Bond
6.200% ............. 12/01/00 $1,000 $1,054
6.300% ............. 12/01/01 65 70
5.300% ............. 12/01/06 1,000 1,081
5.400% ............. 12/01/08 1,000 1,092
5.500% ............. 12/01/10 1,240 1,366
5.000% ............. 12/01/17 1,000 1,007
Prerefunded 06/01/01 @ 102
6.300% ............. 12/01/01 35 38
Hamilton County Waste Water
Revenue Bond
5.500% ............. 12/01/07 240 265
Hancock County GO
5.750% ............. 12/01/16 500 538
Hilliard City School District GO
5.300% ............. 12/01/99 250 255
6.150% ............. 12/01/01 625 670
Prerefunded 12/01/01 @ 102
5.900% ............. 12/01/04 1,000 1,081
Hudson Local School District GO
5.000% ............. 12/15/02 500 524
Kenston Local School District GO
5.550% ............. 12/01/03 500 536
Kent State University GO
6.150% ............. 05/01/04 250 274
5.200% ............. 12/01/18 500 512
Kettering GO
5.150% ............. 12/01/05 550 588
Prerefunded 12/01/00 @ 102
7.200% ............. 12/01/02 480 523
Lake County GO
5.300% ............. 12/01/98 250 250
Lakewood GO
5.000% ............. 12/01/08 1,055 1,130
4.900% ............. 12/01/11 1,070 1,105
Prefunded 12/01/02 @ 102
6.500% ............. 12/01/12 1,500 1,678
Lakota Local School District GO (FGIC)
7.100% ............. 12/01/98 200 200
5.700% ............. 12/01/05 250 275
5.000% ............. 12/01/12 1,000 1,035
Prefunded 12/01/00 @ 101
7.000% ............. 12/01/03 200 215
Licking County GO
7.000% ............. 12/01/02 100 112
Loveland City School District GO
6.000% ............. 12/01/00 250 261
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Lucas County GO
8.000% ............. 12/01/98 $ 100 $ 100
Lucas County, Mercy Hospital
Revenue Bond
6.000% ............. 09/01/04 175 185
Mahoning County, St Elizabeth
Hospital Revenue Bond
6.800% ............. 12/01/98 100 100
Marysville Local School District GO
5.100% ............. 12/01/04 500 531
Mason City School District GO
5.200% ............. 12/01/08 865 913
Massillon City School District GO,
Prefunded 12/01/00 @ 102
(AMBAC)
6.950% ............. 12/01/03 300 326
7.000% ............. 12/01/04 150 163
Medina City School District GO
5.000% ............. 12/01/12 1,000 1,031
Miami University General Receipts
5.400% ............. 12/01/05 1,000 1,066
4.800% ............. 12/01/18 3,000 2,947
Miamisburg Sewer System
Revenue Bond
5.000% ............. 11/15/08 500 525
Middleburg Heights, Hospital
Improvement Revenue Bond,
Southwest General Hospital Project,
Prefunded 08/15/01 @ 102
6.750% ............. 08/15/21 2,760 3,033
Montgomery County, Catholic
Health Initiatives Revenue Bond
5.000% ............. 12/01/08 1,000 1,044
Montgomery County,
Sisters of Charity Health Care
Revenue Bond
6.500% ............. 05/15/08 300 326
Montgomery County,
Solid Waste Revenue Bond
5.300% ............. 11/01/07 1,000 1,084
5.125% ............. 11/01/08 500 532
5.000% ............. 12/01/09 1,000 1,039
5.350% ............. 11/01/10 900 958
Montgomery County,
Water Revenue Bonds
5.250% ............. 11/15/06 500 539
Newark GO
5.450% ............. 12/01/02 1,000 1,065
See Accompanying Notes
87
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
North Canton City School District GO
5.250% ............. 12/01/01 $ 500 $ 523
5.750% ............. 12/01/06 250 276
Northeast Regional Sewer District
Wastewater Revenue Bond,
Prefunded 11/01/01 @ 101
(AMBAC)
6.400% ............. 11/15/03 250 272
6.500% ............. 11/15/08 250 273
6.500% ............. 11/15/16 500 546
Northwest Local School District GO
(FGIC)
5.400% ............. 12/01/09 520 569
Oak Hills Local School District GO
5.650% ............. 12/01/07 350 390
5.125% ............. 12/01/25 1,250 1,259
State, Air Quality Development
Authority Revenue Bond,
Buckeye Power Project
5.250% ............. 08/01/07 400 420
State, Air Quality Development Authority
Revenue Bond, (A)
Ohio Power Company Project
7.400% ............. 08/01/09 190 199
State, Housing Financial Agency,
Single Family Mortgage
Revenue Bond
7.400% ............. 03/01/05 45 47
7.400% ............. 09/01/05 50 52
7.600% ............. 09/01/16 130 137
6.375% ............. 04/01/17 90 92
State, School District GO
School Bus Project
5.250% ............. 04/15/00 440 451
State, Building Authority
Revenue Bond
5.200% ............. 10/01/04 500 533
Correctional Facilities Project,
Series A,
Prefunded 08/01/99 @ 102
7.350% ............. 08/01/04 600 629
James Rhodes Project, Series A
5.900% ............. 06/01/00 500 518
State, Building Authority
Facilities Revenue Bond,
Administration Building
Fund Project, Series A
5.400% ............. 10/01/04 250 269
4.750% ............. 10/01/17 2,750 2,681
Par Value
Maturity (000) (000)
-------- ----- -----
Adult Correctional Building Fund,
Series A
6.125% ............. 10/01/09 $1,300 $1,440
Highway Safety Building
5.400% ............. 10/01/02 250 265
Juvenile Correctional Building
5.800% ............. 10/01/02 250 268
State, Capital Facilities GO
Series A
5.400% ............. 10/01/07 1,370 1,461
State, Department of
Administrative Services
Revenue Bond
5.000% ............. 12/15/12 1,210 1,249
State, GO
6.600% ............. 09/01/03 150 168
Prefunded 08/01/05 @ 102
6.200% ............. 08/01/12 860 983
State, Higher Education
Facility Revenue Bond
5.000% ............. 07/01/18 600 601
Series B
5.875% ............. 12/01/01 500 532
Case Western Reserve University
5.000% ............. 10/01/10 905 943
Series B,
Prefunded 10/01/00 @ 102
7.125% ............. 10/01/14 60 65
Denison University Project
5.250% ............. 11/01/09 1,000 1,059
John Carroll University Project
5.750% ............. 04/01/19 1,000 1,049
University of Dayton
5.875% ............. 12/01/04 250 268
Xavier University
5.375% ............. 05/15/22 2,000 2,093
State, Infrastructure GO
5.250% ............. 08/01/03 1,265 1,342
State, Natural Resources
Capital Facilities-Series C
4.700% ............. 04/01/04 2,470 2,563
State, Public Facilities Higher
Education Revenue Bond,
Prerefunded 05/01/99 @ 102
7.250% ............. 05/01/00 100 104
7.250% ............. 05/01/01 400 415
See Accompanying Notes
88
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
Series II-A
5.500% ............. 12/01/00 $ 500 $ 520
5.200% ............. 05/01/06 500 531
5.200% ............. 05/01/07 1,000 1,059
4.250% ............. 12/01/07 1,000 1,006
4.500% ............. 11/01/08 1,000 1,015
5.000% ............. 05/01/12 2,000 2,058
Series II-B
5.700% ............. 11/01/03 1,000 1,081
State, Public Facilities
Mental Health Revenue Bond
5.000% ............. 12/01/02 1,500 1,568
6.800% ............. 12/01/02 2,000 2,097
Ohio State University General Receipts
5.150% ............. 12/01/00 250 258
5.400% ............. 12/01/02 1,500 1,586
State, Water Development
Authority Pollution Control
Facilities Revenue Bond
5.900% ............. 06/01/00 500 518
5.900% ............. 12/01/02 320 344
5.000% ............. 12/01/07 1,000 1,055
5.000% ............. 06/01/09 1,000 1,056
5.125% ............. 06/01/19 5,000 5,063
State, Water Development
Authority Pure Water
Revenue Bond
5.500% ............. 06/01/01 200 209
5.500% ............. 12/01/01 1,000 1,053
5.550% ............. 06/01/04 1,000 1,075
5.750% ............. 12/01/05 500 539
5.600% ............. 06/01/07 1,500 1,646
State, Water Development
Authority Revenue Bond
8.000% ............. 12/01/99 150 157
7.250% ............. 12/01/08 500 589
State, Water Development
Authority Fresh Water
Revenue Bond
5.400% ............. 12/01/04 510 548
State, Turnpike Commission
Turnpike Revenue Bond,
Series A (FGIC)
5.500% ............. 02/15/17 1,805 1,956
5.500% ............. 02/15/18 1,000 1,085
Olentangy Local School District GO
Series 97
5.050% ............. 12/01/09 700 744
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Ontario Local School District
4.800% ............. 12/01/11 $ 790 $ 806
4.900% ............. 12/01/12 630 645
Orrville Electric System
Revenue Bond
5.500% ............. 12/01/08 1,220 1,344
Ottawa County GO (MBIA)
5.500% ............. 09/01/10 500 550
5.400% ............. 09/01/11 500 541
Portage County GO
6.000% ............. 12/01/03 915 1,004
5.100% ............. 12/01/12 2,500 2,606
Portage County, Hospital
Revenue Bond
5.625% ............. 11/15/07 1,000 1,090
Richland County GO
4.850% ............. 12/01/04 200 210
5.250% ............. 12/01/05 165 177
5.200% ............. 12/01/08 515 550
Rocky River City School District GO
5.100% ............. 12/01/07 625 672
Sandusky County, Hospital
Facility Revenue Bond
4.200% ............. 01/01/99 500 500
4.900% ............. 01/01/05 500 503
Solon, GO
5.500% ............. 12/01/04 220 234
Springfield Local School District GO
6.100% ............. 12/01/03 250 274
State, GO
5.000% ............. 08/01/00 500 513
5.150% ............. 09/01/01 500 520
4.750% ............. 05/15/02 1,000 1,034
4.700% ............. 08/01/03 1,000 1,038
5.000% ............. 05/01/06 1,000 1,063
5.200% ............. 08/01/08 1,000 1,061
Strongsville City School District GO
4.900% ............. 12/01/05 550 579
5.150% ............. 12/01/08 1,000 1,074
5.200% ............. 12/01/09 670 723
5.900% ............. 12/01/15 1,575 1,750
Summit County GO
5.000% ............. 12/01/04 500 528
See Accompanying Notes
89
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Toledo GO
7.375% ............. 12/01/99 $ 500 $ 518
7.375% ............. 12/01/01 100 110
University of Cincinnati General
Receipts Revenue Bond
5.350% ............. 06/01/08 1,000 1,054
5.500% ............. 06/01/10 525 568
5.500% ............. 06/01/11 555 596
7.000% ............. 06/01/11 500 544
5.700% ............. 06/01/12 1,240 1,319
Prerefunded 06/01/99 @ 102
7.000% ............. 06/01/01 400 416
7.100% ............. 06/01/10 200 208
University of Toledo General Receipts
Revenue Bond
5.300% ............. 06/01/01 175 182
Upper Arlington City
School District GO
6.000% ............. 12/01/05 1,170 1,309
5.125% ............. 12/01/19 1,000 1,011
Upper Arlington GO, ETM
6.200% ............. 12/01/01 270 289
Vandalia GO
5.350% ............. 12/01/09 505 546
Washington County,
Marietta Area Health Facilities
Revenue Bond
5.375% ............. 09/01/18 1,500 1,553
West Clermont Local School
District GO
5.650% ............. 12/01/08 1,030 1,132
West Geauga Local School
District GO
5.650% ............. 11/01/06 1,000 1,099
Westlake City School District GO
6.200% ............. 12/01/06 1,635 1,874
Westlake GO
5.300% ............. 12/01/03 500 533
Wilmington City School District GO
5.350% ............. 12/01/00 225 233
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Worthington City School District GO
5.800% ............. 12/01/01 $ 1,200 $ 1,275
5.850% ............. 12/01/02 500 539
Wyoming School District GO
5.750% ............. 12/01/13 135 152
5.750% ............. 12/01/14 690 775
5.750% ............. 12/01/17 400 448
Wright State University General
Receipts Revenue Bond
4.900% ............. 05/01/05 500 524
Youngstown City School District RAN
5.350% ............. 06/15/99 1,000 1,011
--------
208,694
--------
Puerto Rico -- 0.4%
Puerto Rico Commonwealth GO,
Prerefunded 07/01/00 @ 102
(FGIC)
7.200% ............. 07/01/03 500 538
Puerto Rico Housing Financial
Corporation Revenue Bond
7.300% ............. 10/01/06 190 199
7.400% ............. 04/01/07 210 220
--------
957
--------
TOTAL MUNICIPAL BONDS
(Cost $201,476) ............................. 209,651
--------
CASH EQUIVALENT -- 0.5%
Federated Ohio Municipal
Cash Trust ................... 1,150 1,150
--------
TOTAL CASH EQUIVALENT
(COST $1,150) ............................... 1,150
--------
TOTAL INVESTMENTS -- 98.4%
(Cost $202,626) ............................. $210,801
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.6% ................................. 3,331
--------
See Accompanying Notes
90
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Tax Exempt Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 18,631,085 outstanding shares
of beneficial interest ...................... $201,517
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 415,350 outstanding shares of
beneficial interest ......................... 4,336
Accumulated net realized gain
on investments .............................. 137
Net unrealized appreciation on investments ... 8,175
Overdistributed net investment income ........ (33)
--------
TOTAL NET ASSETS -- 100.0% ..................... $214,132
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................ $11.24
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................. $11.21
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($11.21 divide 97%) ........ $11.56
========
- --------------
(A) Securities are backed by a letter of credit backed by a major financial
institution.
AMBAC -- American Municipal Bond Assurance Corporation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Federal Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
RAN -- Revenue Anticipation Note
See Accompanying Notes
91
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Ohio Tax Exempt Fund
For a Fund Share Outstanding Throughout Each Year
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1998 --------------------------------------------------------------
(Unaudited) 1998 1997
-------------------------- -------------------------- -----------------------------
Class I Class A Class I Class A Class I Class A
------------ ---------- ----------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................... $11.13 $11.09 $10.86 $10.82 $10.70 $10.66
------ ------ ------ ------ ------ ------
Income From Investment
Operations
Net investment income....... 0.27 0.26 0.51 0.51 0.51 0.51
Net gain/(loss) on
securities (realized and
unrealized)................ 0.11 0.12 0.28 0.28 0.16 0.16
------ ------ ------ ------ ------ ------
Total from investment
operations............ 0.38 0.38 0.79 0.79 0.67 0.67
------ ------ ------ ------ ------ ------
Less Distributions
Dividends from net
investment income.......... (0.27) (0.26) (0.51) (0.51) (0.51) (0.51)
Distributions from net
realized capital gains..... (0.00) (0.00) (0.01) (0.01) (0.00) (0.00)
Distributions in excess
of net realized
capital gains.............. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
------ ------ ------ ------ ------ ------
Total distributions...... (0.27) (0.26) (0.52) (0.52) (0.51) (0.51)
------ ------ ------ ------ ------ ------
Net asset value, end of
period...................... $11.24 $11.21 $11.13 $11.09 $10.86 $10.82
====== ====== ====== ====== ====== ======
Total Return.................. 3.42%/5 3.46%/3,5 7.43% 7.39%/3 6.37% 6.38%/3
Ratios/Supplemental Data
Net assets, end of period
(in 000's).................$209,477 $4,655 $165,395 $4,037 $91,366 $3,535
Ratio of expenses to
average net assets......... 0.24%/1,4 0.35%/2,4 0.25%/1 0.25%/2 0.24%/1 0.24%/2
Ratio of net investment
income to average
net assets................. 4.77%/1,4 4.70%/2,4 4.67%/1 4.59%/2 4.71%/1 4.71%/2
Portfolio turnover rate..... 2% 2% 15% 15% 23% 23%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
------------------------------------------------------------------------------
1996 1995 1994
------------------------- ------------------------- ----------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............... $10.74 $10.70 $10.57 $10.53 $10.84 $10.80
------ ------ ------ ------ ------ ------
Income From Investment
Operation
Net investment income... 0.50 0.50 0.50 0.50 0.52 0.52
Net gain/(loss) on
securities (realized and
unrealized)............ (0.04) (0.04) 0.17 0.17 (0.26) (0.26)
------ ------ ------ ------ ------ ------
Total from investment
operations........ 0.46 0.46 0.67 0.67 0.26 0.26
------ ------ ------ ------ ------ ------
Less Distributions
Dividends from net
investment income...... (0.50) (0.50) (0.50) (0.50) (0.52) (0.52)
Distributions from net
realized capital gains. (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions in excess
of net realized
capital gains......... (0.00) (0.00) (0.00) (0.00) (0.01) (0.01)
------ ------ ------ ------ ------ ------
Total distributions. (0.50) (0.50) (0.50) (0.50) (0.53) (0.53)
------ ------ ------ ------ ------ ------
Net asset value, end of
period................. $10.70 $10.66 $10.74 $10.70 $10.57 $10.53
====== ====== ====== ====== ====== ======
Total Return............. 4.36% 4.35%/3 6.61% 6.64%/3 2.28% 2.29%/3
Ratios/Supplemental Data
Net assets, end of
period (in 000's)..... $82,886 $2,869 $71,996 $3,168 $63,133 $2,725
Ratio of expenses to
average net assets.... 0.26%/1 0.26%/2 0.24%/1 0.24%/2 0.33%/1 0.33%/2
Ratio of net investment
income to average
net assets............ 4.68%/1 4.68%/2 4.82%/1 4.82%/2 4.54%/1 4.54%/2
Portfolio turnover
rate.................. 10% 10% 3% 3% 2% 2%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the periods ended November
30, 1998, May 31, 1998 and 1997 would have been 0.79% and 4.26%, 0.80%, and
4.12%, and .79% and 4.16%, respectively. The operating expense ratio and the
net investment income ratio before fee waivers by the Investment Advisers and
Custodian for Class I for the years ended May 31, 1996 and 1995 would have
been .83% and 4.11%, and .80% and 4.26%, respectively. The operating expense
ratio and the net investment income ratio before fee waivers by the Investment
Advisers for Class I for the year ended May 31, 1994 would have been .88% and
3.99%.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the periods ended November
30, 1998, May 31, 1998 and 1997 would have been 0.89% and 4.19%, 0.80% and
4.04%, and .79% and 4.16%, respectively. The operating expense ratio for the
net investment income ratio before fee waivers by the Investment Advisers and
Custodian for Class A for the years ended May 31, 1996 and 1995 would have
been .83% and 4.11%, and .78% and 4.27%, respectively. The operating expense
ratio and the net investment income ratio before fee waivers by the Investment
Advisers for Class A for the year ended May 31, 1994 would have been .88% and
3.99%.
3 Total return excludes sales charge.
4 Annualized.
5 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
92
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Municipal Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 97.5%
Pennsylvania -- 96.8%
Allegheny County Higher
Education Building Authority
Revenue Bond,
Duquesne University Project
(AMBAC)
6.500% ............. 03/01/10 $ 380 $ 450
Allegheny County Industrial
Development Authority
Revenue Bond (A)
5.250% ............. 2/01/14 660 675
Allegheny County Sanitation Authority
Sewer Revenue Bond (FGIC)
0.000% ............. 12/01/08 2,750 1,791
Ambridge Area School District
GO (FGIC)
4.750% ............. 11/01/08 500 519
Bradford Area School District GO,
Partially Prerefunded
10/01/05 @ 100 (FGIC)
5.250% ............. 10/01/05 1,000 1,066
Bucks County Community
College Authority College
Building Revenue Bond
5.300% ............. 06/15/10 100 105
Butler County Sewer Authority
Revenue Bond,
Prerefunded 01/01/04 @ 100
7.250% ............. 01/01/04 110 122
Cumberland County Revenue Bond,
Messiah College Project (AMBAC)
5.000% ............. 10/01/07 1,000 1,056
Dauphin County, General Authority
Revenue Bond, Mandatory
Put 12/1/05 @100 (AMBAC)
5.400% ............. 06/01/26 800 867
Delaware County GO
5.000% ............. 11/15/07 1,000 1,065
Delaware County, Villanova
University Revenue Bond (MBIA)
4.700% ............. 12/01/08 365 379
Delaware River Port Authority
Revenue Bond, Pennslyvania &
New Jersey Bridges Project,
Prerefunded 1/1/99 @ 102 (AMBAC)
7.375% ............. 01/01/07 500 512
6.000% ............. 01/15/10 600 657
Erie County, Prison Authority Lease
Revenue Bond, Prerefunded
11/01/01 @ 100 (MBIA)
6.600% ............. 11/01/02 1,000 1,081
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Gettysburg College Revenue Bond
(MBIA)
5.375% ............. 08/15/13 $1,000 $ 1,076
Lower Providence Township
GO (MBIA)
5.000% ............. 05/01/07 215 227
Magee Woman's Hospital Project,
Series O, (ETM)
10.125% ............ 10/01/02 105 119
Middletown Township, Bucks
County Special Obligation
Revenue Bond, (ETM)
6.100% ............. 10/01/00 210 215
Monroeville County Hospital
Authority Reveune Bond,
East Suburban Health Center
Project, Prerefunded 07/01/04 @ 100
7.600% ............. 07/01/08 920 1,033
Montgomery County Hospital
Authority Revenue Bond,
Suburban General Hospital
Project, (ETM)
7.750% ............. 05/01/02 110 118
Moon Area School District,
GO, Series A (FGIC)
0.00% ............. 11/15/11 1,520 840
Northampton County Higher
Education Authority Revenue
Bond, Moravian College Project
(AMBAC)
5.500% ............. 07/01/07 900 987
Penn Hills Township GO (AMBAC)
5.500% ............. 12/01/04 1,000 1,083
Philadelphia Hospital & Higher
Educational Facilities
Authority Revenue Bond,
Children's Hospital Project,
Series A, Prerefunded 02/15/02 @ 102
6.500% ............. 02/15/21 200 220
Philadelphia Gas Works Revenue Bond,
Series 13, Prerefunded 06/15/01 @ 102
7.700% ............. 06/15/11 460 513
Series 14 (FSA)
6.250% ............. 07/01/08 300 335
Philadelphia Hospital Revenue Bond,
Graduate Hospital Project (ETM)
7.000% ............. 07/01/10 385 445
See Accompanying Notes
93
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Municipal Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Thomas Jefferson University (ETM)
7.000% ............. 07/01/08 $ 205 $ 233
Philadelphia Water & Wastewater
Authority Revenue Bond (MBIA)
5.500% ............. 06/15/07 1,500 1,644
6.250% ............. 08/01/11 200 234
Series 95
6.750% ............. 08/01/03 200 225
Pittsburgh & Allegheny County
Auditorium Authority Revenue
Bond (AMBAC)
6.400% ............. 12/01/01 710 711
Pittsburgh GO, Series A (MBIA)
5.500% ............. 09/01/06 955 1,030
Pleasant Valley School District
Revenue Bond (FGIC)
5.000% ............. 09/01/10 500 520
Scranton-Lackawanna Health &
Welfare Authority
Revenue Bond, (ETM)
6.625% ............. 07/01/09 495 561
Seneca Valley, State School District
GO, Series A, Prerefunded
07/01/02 @ 100 (FGIC)
5.700% ............. 07/01/06 1,000 1,065
Somerset County GO (AMBAC)
5.000% ............. 10/01/14 550 560
State, GO
Series 1
6.200% ............. 09/15/04 700 757
5.125% ............. 03/15/12 1,475 1,536
State, Higher Education Assistance
Authority Revenue Bond,
Series A (FGIC)
6.800% ............. 12/01/00 685 722
State, Higher Education Facilities
Authority Revenue Bond,
University of Pennsylvania Project
6.500% ............. 09/01/04 250 283
5.250% ............. 01/01/07 100 105
Series A
5.550% ............. 09/01/09 1,300 1,398
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
State, Housing Finance Agency
Revenue Bond, Single Family
Mortgage, Series Z
7.000% ............. 10/01/02 $ 50 $ 53
State, Industrial Development
Authority Revenue Economic
Development Bond,
Series 94 (AMBAC)
5.800% ............. 07/01/09 700 783
State, Infrastructure Investment
Authority Revenue Bond, Pennvest,
Series A
5.000% ............. 09/01/08 250 267
Series B
6.450% ............. 09/01/04 1,500 1,661
State, Intergovernmental Cooperative
Authority Special Tax Revenue
Bond, City of Philadelphia
Funding Program, Prerefunded
06/15/02 @ 100
6.800% ............. 06/15/22 500 550
State, Turnpike Commission Revenue
Bond, Series O (FGIC)
5.250% ............. 12/01/01 1,010 1,054
Swarthmore Borough College
Authority Revenue Bond
6.000% ............. 09/15/06 700 759
5.250% ............. 09/15/10 410 444
Prerefunded 09/15/02 @ 102
6.000% ............. 09/15/06 155 170
Tyrone School District GO (MBIA)
5.700% ............. 09/15/08 1,000 1,054
Union City Higher Educational
Facilities Financing Authority
Revenue Bond, Bucknell
University Project (MBIA)
6.200% ............. 04/01/06 1,000 1,076
West Mifflin Sewer Authority
Revenue Bond (MBIA)
5.000% ............. 08/01/14 250 253
Westmoreland County, Municipal
Authority Revenue Bond
(FGIC) (ETM)
2.000% ............. 07/01/07 500 421
0.000% ............. 07/01/08 500 331
------
38,016
------
See Accompanying Notes
94
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Municipal Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
Puerto Rico -- 0.7%
Commonwealth of Puerto Rico,
Public Finance Corporation
Revenue Bond, Series A (AMBAC)
5.375% ............. 06/01/10 $ 250 $ 275
-------
TOTAL MUNICIPAL BONDS
(Cost $36,287) .............................. 38,291
-------
CASH EQUIVALENT -- 1.4%
Federated Investors Pennsylvania
Municipal Cash Trust .......... 576 576
-------
TOTAL CASH EQUIVALENT
(Cost $576) ................................. 576
-------
TOTAL INVESTMENTS -- 98.9%
(Cost $36,863) .............................. $38,867
=======
OTHER ASSETS AND LIABILITIES,
NET -- 1.1% ................................. 424
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 3,695,975 outstanding shares of
beneficial interest ......................... $36,959
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 7,200 outstanding shares of
beneficial interest ......................... 177
Accumulated net realized gain
on investments .............................. 41
Net unrealized appreciation on investments 2,004
Undistributed net investment income .......... 110
-------
TOTAL NET ASSETS -- 100.0%...................... $39,291
=======
Value
(000)
-----
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................ $10.58
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A .................. $10.60
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.60 divide 97%)......... $10.93
=======
- --------------
(A) Securities are backed by a letter of credit backed by a major financial
institution.
AMBAC -- American Municipal Bond Assurance Corporation
ETM -- Escrowed to Maturity
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Federal Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
See Accompanying Notes
95
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Pennsylvania Municipal Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six
Months Ended For the Year Ended May 31,
November 30, 1998 ---------------------------------------------For the For the For the
(Unaudited) 1998 1997 Period Year Period
------------------- ------------------- ------------------------- Ended Ended Ended
May 31, April 30, April 30,
Class I Class A Class I Class A Class I/5 Class A/5,6 1995/5 1996/5 1996/5
------- ------- ------- ------- --------- ----------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period................. $ 10.45 $10.45 $10.22 $10.22 $10.08 $10.13 $10.12 $10.04 $10.00
Income From Investment
Operations
Net investment income..... 0.27 0.26 0.46 0.45 0.44 0.31 0.04 0.43 0.29
Net gain/(loss) on
securities (realized and
unrealized).............. 0.10 0.13 0.24 0.24 0.17 0.12 (0.04) 0.08 0.04
------- ------ ------ ------ ------ ------ ------ ------ ------
Total from investment
operations 0.37 0.39 0.70 0.69 0.61 0.43 0.00 0.51 0.33
------- ------ ------ ------ ------ ------ ------ ------ ------
Less Distributions
Dividends from net
investment income........ (0.24) (0.24) (0.46) (0.45) (0.44) (0.31) (0.04) (0.43) (0.29)
Distributions from net
realized capital
gains.................... (0.00) (0.00) (0.00) (0.00) (0.02) (0.02) (0.00) (0.00) (0.00)
Distributions in excess of
net realized capital
gains.................... (0.00) (0.00) (0.01) (0.01) (0.01) (0.01) (0.00) (0.00) (0.00)
------- ------ ------ ------ ------ ------ ------ ------ ------
Total distributions.... (0.24) (0.24) (0.47) (0.46) (0.47) (0.34) (0.04) (0.43) (0.29)
------- ------ ------ ------ ------ ------ ------ ------ ------
Net asset value, end of
period.................... $ 10.58 $10.60 $10.45 $10.45 $10.22 $10.22 $10.08 $10.12 $10.04
======= ====== ====== ====== ====== ====== ====== ====== ======
Total Return................ 3.62%/4 3.76%/4,7 6.95% 6.84%/7 6.21% 6.13%/7 (0.03)%/4,7 5.06%/7 3.38%/4,7
Ratios/Supplemental Data
Net assets, end of period
(in 000's)............... $39,109 $ 182 $38,753 $ 125 $36,769 $ 81 $38,733 $38,809 $34,638
Ratio of expenses to
average net assets....... 0.45%/1,3 0.55%/2,3 0.69%/1 0.77%/2 0.87%/1 0.99%/2,3 0.85%/1,3 0.85%/1 0.85%/1,3
Ratio of net investment
income to average
net assets............... 5.21%/1,3 4.93%/2,3 4.40%/1 4.32%/2 4.35%/1 4.26%/2,3 4.32%/1,3 4.16%/1 4.05%/1,3
Portfolio turnover rate... 8% 8% 20% 20% 42% 42% 0% 22% 4%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers and other service providers for Class I for
the periods ended November 30, 1998, May 31, 1998 and May 31, 1997, for the
period ended May 31, 1996, for the year ended April 30, 1996 and for the
period ended April 30, 1995 would have been 0.80% and 4.86%, 0.84% and 4.25%,
1.02% and 4.20%, 1.31% and 3.86%, 1.24% and 3.77%, and 1.36% and 3.54%,
respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the periods ended November
30, 1998, May 31, 1998 and May 31, 1997 would have been 0.90% and 4.93%, 0.94%
and 4.15%, and 1.00% and 4.25%, respectively.
3 Annualized.
4 Returns are for the period indicated and have not been annualized.
5 Activity for the period presented includes that of the Predecessor Fund
through September 6, 1996. The Predecessor Fund commenced operations on August
10, 1994. During 1996, the Predecessor Fund changed its fiscal year end from
April 30 to May 31.
6 Class A commenced operations on September 11, 1996.
7 Total return excludes sales charge.
See Accompanying Notes
96
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 97.3%
Alaska -- 0.2%
State, Housing Finance Corporation,
Revenue Bond
4.950% ............. 06/01/02 $ 95 $ 98
5.050% ............. 12/01/03 90 94
------
192
------
Arizona -- 4.1%
Glendale, Salt River Project,
Series A (A)
5.125% ............. 01/01/10 2,415 2,551
Glendale, GO
4.500% ............. 07/01/02 250 256
Maricopa County, Industrial
Development Authority
Revenue Bond, Madera Pointe
Apartments Project,
Series A (FSA)
5.300% ............. 06/01/06 1,000 1,044
Pima County, Street & Highway
Revenue
4.100% ............. 07/01/02 300 304
------
4,155
------
Arkansas -- 0.4%
Pulaski County Health Facilities
Board Revenue Catholic
Health Initiatives
4.150% ............. 12/01/00 250 252
State, Development Finance
Authority Correction Facility
Revenue Bond
4.800% ............. 11/15/06 200 208
------
460
------
California -- 1.1%
San Francisco, City & County GO
(FGIC) (A)
5.000% ............. 06/15/10 1,000 1,059
San Jose Unified School District
4.500% ............. 08/01/06 15 16
------
1,075
------
Florida -- 1.0%
State, Department of General
Services Division Facilities
Management Revenue Bonds,
Series A (FSA) (A)
5.500% ............. 09/01/26 1,000 1,049
------
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Georgia -- 4.6%
Forsyth County, School District
4.800% ............. 02/01/02 $ 100 $ 103
Fulton County, Housing Authority
Single Family Revenue
5.100% ............. 03/01/03 40 41
5.300% ............. 03/01/05 45 47
Private Colleges & Universities
Authority Emory University Project
5.375% ............. 11/01/05 1,000 1,081
State, GO
6.250% ............. 08/01/06 3,000 3,457
------
4,729
------
Illinois -- 5.6%
Chicago School Finance Authority, GO
5.200% ............. 06/01/06 150 159
Glenview, BAN
5.550% ............. 12/01/99 175 178
Lake County, First Preservation
District GO
5.500% ............. 02/01/09 1,000 1,100
Peoria, GO Series C
5.100% ............. 01/01/02 100 104
State, Development Financial
Authority Revenue School District
Number 189 Revenue Bond
5.000% ............. 01/01/04 400 418
State, Educational Facility Authority
Revenue Bond
Midwestern University,
Series B
5.200% ............. 05/15/02 100 104
Robert Morris College
4.700% ............. 06/01/04 200 208
State, Sales Tax Revenue Bond (A)
5.100% ............. 06/15/18 2,200 2,219
Series Q
6.000% ............. 06/15/12 1,000 1,139
Series U
4.500% ............. 06/15/02 125 128
------
5,757
------
Indiana -- 13.3%
Decatur Township Marion County,
School District Revenue Bond
4.650% ............. 09/15/03 150 155
East Allen, Woodland School Building
4.800% ............. 01/15/06 200 209
See Accompanying Notes
97
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Indiana -- Continued
East Chicago, Elementary School
Building Revenue Bond
6.250% ............. 01/05/16 $1,750 $ 1,993
Evansville, Redevelopment Lease Rent
4.750% ............. 01/01/01 125 128
Fort Wayne, Redevelopment District
Refunding & Improvement, Series B
4.550% ............. 02/01/08 500 512
Fort Wayne, South Side School Building
Revenue Bond
4.700% ............. 07/15/10 750 771
4.750% ............. 07/15/11 500 507
Hamilton, Southeastern Industrial
Construction School Building
First Mortgage Revenue Bond
4.800% ............. 01/15/05 255 266
4.500% ............. 07/05/03 365 374
4.550% ............. 07/05/04 300 308
4.400% ............. 07/15/01 100 102
Hammond, Multi-School Building
Revenue Bond, Series B (A)
6.000% ............. 01/15/18 1,250 1,414
Indiana Transportation - Highway
Revenue Bond
4.700% ............. 12/01/03 100 104
Howard County, Industrial
Redevelopment Authority
Economic Development Income
Tax Lease Revenue Bond
4.950% ............. 12/15/01 100 104
Indianapolis Public Improvement
Bond Bank Transportation Revenue
5.000% ............. 07/01/01 100 103
Lagrange County, Jail Building
Corporation First Mortgage
5.300% ............. 10/01/10 300 314
Lawrence, Multi-School Building
Refunding First Mortgage
4.550% ............. 02/01/01 150 153
Lawrenceburg, Multi-School
Building First Mortgage
4.250% ............. 02/01/99 115 115
Lebanon, Middle School Building
First Mortgage
4.650% ............. 07/05/06 235 241
Marion County, Convention &
Recreational Facilities Authority
Excise Tax Revenue Sub-Lease,
Series A
4.500% ............. 06/01/05 300 307
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Indiana -- Continued
Mooresville, School Building
Refunding First Mortgage
4.150% ............. 01/15/02 $ 100 $ 101
MSD Steuben County School
Building First Mortgage
4.250% ............. 03/01/02 245 247
North West Hendricks, Elementary
School Building Refunding
First Mortgage
4.450% ............. 07/15/99 100 101
Patoka Lake, Regional Water and
Sewage Waterworks Revenue,
Series A
4.500% ............. 01/01/02 100 102
Porter County, Hospital Association
Revenue Refund - Porter
Memorial Hospital
4.800% ............. 06/01/00 150 153
Purdue University, Certificate &
Participation
4.250% ............. 07/01/99 200 201
4.550% ............. 07/01/01 100 102
South Bend, Waterworks Revenue
4.350% ............. 01/01/03 215 219
Southeast Dubois County, JR/SR
High School Building
4.850% ............. 01/01/05 100 104
First Mortgage
4.150% ............. 07/01/99 100 101
State Transportation Finance
Authority Highway
Revenue Bond
4.600% ............. 12/01/02 105 108
State, Bond Bank Commission
Facilities Revenue Refunding,
Series A
4.150% ............. 07/01/04 400 402
State, Bond Bank Common School
Federal Advisory Series A
4.700% ............. 08/01/00 100 102
State, Improvement School Building,
First Mortgage,
Prerefunded 07/15/04 @ 102
6.150% ............. 01/15/16 1,200 1,351
State, Recreational Development
Community Revenue, Series A
4.900% ............. 07/01/00 100 102
State, Refunding First Mortgage
4.450% ............. 01/05/05 300 304
See Accompanying Notes
98
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Indiana -- Continued
State, Revolving Fund, Series A
5.000% ............. 02/01/10 $1,000 $ 1,049
Vinton-Tecumseh, School Building
Refunding First Mortgage
4.350% ............. 01/05/04 495 502
Wheeler-Union Township, School
Building First Mortgage, Series A
5.100% ............. 07/15/05 100 106
--------
13,637
--------
Iowa -- 0.4%
Polk County, Series A
4.500% ............. 06/01/02 400 410
--------
Kansas -- 0.3%
Johnson County, Water District
Number 001 Water Revenue,
Series A
4.300% ............. 06/01/01 300 305
--------
Kentucky -- 0.6%
Bath County, School District School
Building Revenue Bond
4.200% ............. 10/01/01 110 112
4.300% ............. 10/01/02 115 117
Elizabethtown, Public Properties
Holding Revenue
4.875% ............. 04/01/04 375 393
--------
622
--------
Maryland -- 3.7%
Montgomery County, GO
5.000% ............. 05/01/03 1,000 1,051
Prince Georges County, Public
Improvement GO, Series A (MBIA)
6.000% ............. 03/15/06 1,000 1,124
State, Department Transportation
4.400% ............. 12/15/04 250 257
University of Maryland, University &
College Improvements, Ser C, RB
4.350% ............. 10/01/03 235 241
Washington, DC, Suburban
Sanitation District Revenue
Bond Water Supply Project,
Prerefunded 11/01/01 @ 102
6.500% ............. 11/01/05 1,000 1,097
--------
3,770
--------
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Massachusetts -- 5.0%
Brockton, GO
4.500% ............. 04/01/03 $ 500 $ 513
State, Bay Transportation Authority
General Transportation System
Revenue Bond Series A
5.800% ............. 03/01/11 1,000 1,130
Prerefunded 03/01/05 @ 102
5.750% ............. 03/01/18 3,040 3,260
State, Consolidated Loan, Series - A
4.500% ............. 03/01/02 200 205
--------
5,108
--------
Michigan -- 6.4%
Birmingham, School District GO
5.000% ............. 11/01/18 25 25
Grand Rapids, Community College
GO (MBIA) (A)
5.900% ............. 05/01/22 2,000 2,195
Redford, Michigan, School District
GO (AMBAC)
5.500% ............. 05/01/06 1,315 1,433
State, Municipal Bond Authority
Revenue Bond
6.000% ............. 10/01/07 2,000 2,270
State, Building Authority Revenue
Equipment Program, Series B
4.100% ............. 10/01/00 300 303
Troy, City School District School
Bond Loan Fund
4.400% ............. 05/01/03 300 307
--------
6,533
--------
Minnesota -- 1.9%
Duluth, Water Utilities GO, Series-D
4.500% ............. 02/01/03 235 241
State, Housing Finance Agency
Residential Housing
4.750% ............. 07/01/01 200 204
State, Public Facilities Authority
Water Pollution Control
Revenue Bond, Prerefunded
03/01/00 @ 102, Series A
7.100% ............. 03/01/12 1,300 1,386
Willmar, Independent School
District Refunding, Series A
4.850% ............. 02/01/05 105 110
--------
1,941
--------
See Accompanying Notes
99
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Missouri -- 0.2%
Maryland Heights, Public Faclility
Authority Leasehold Revenue
4.600% ............. 06/01/05 $ 195 $ 201
-------
Nebraska -- 1.3%
American Public Energy Agency
Gas Refunding
4.200% ............. 09/01/10 1,000 986
Douglas County, Hospital Authority
Immanuel Medical Center
Revenue Bond
4.450% ............. 09/01/02 300 307
-------
1,293
-------
Nevada -- 2.2%
Henderson, Nevada, GO (MBIA)
6.500% ............. 06/01/07 1,000 1,169
Nevada State, GO
6.300% ............. 07/01/04 1,000 1,091
-------
2,260
-------
New Jersey -- 2.2%
State, Transportation Fund Revenue
Bond, Series B (AMBAC)
6.000% ............. 06/15/05 2,000 2,232
-------
New Mexico -- 0.8%
State, Severance Tax, Series B
4.750% ............. 07/01/06 750 772
-------
New York -- 3.5%
State, Power Authority General
Purpose Revenue Bond,
Prerefunded 01/01/10 @ 100
7.000% ............. 01/01/10 1,000 1,213
Orange County, GO
5.000% ............. 07/15/11 2,225 2,339
-------
3,552
-------
North Carolina -- 0.3%
Durham, Water & Sewer
Utility Systems
4.500% ............. 06/01/02 335 343
-------
Ohio -- 6.9%
Butler County, Transportation
Improvement Revenue Bond,
Series A (FSA) (A)
6.000% ............. 04/01/10 1,000 1,135
Cleveland, Public Power System
Revenue Bond, Series 1 (MBIA)
6.000% ............. 11/15/10 995 1,141
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Cleveland, Water Works
Revenue Bond,
Series G (MBIA)
5.500% ............. 01/01/09 $1,500 $ 1,641
Hudson, Local School District
GO (FGIC)
0.000% ............. 12/15/10 1,000 586
State, Higher Educational Facility
Revenue Bond, John Carroll
University Project (A)
5.750% ............. 04/01/19 1,250 1,311
State, Housing Finance Agency
Mortgage Revenue
5.350% ............. 09/01/04 200 209
State, Public Facility Community
Higher Education Capital Facility,
Series II-B
4.500% ............. 11/01/06 200 206
Wyoming City, School District GO
5.750% ............. 12/01/15 740 831
-------
7,060
-------
Oklahoma -- 0.2%
State, Transportation & Parking
Authority Parking System
Revenue Bond
4.950% ............. 07/01/04 100 106
4.850% ............. 07/01/03 100 105
-------
211
-------
Pennsylvania -- 0.1%
State, Higher Educational Facility
Authority Revenue Philadelphia
College Osteopathic
4.450% ............. 12/01/01 100 102
-------
Rhode Island -- 1.4%
State, Convention Center Authority
Revenue Bond, Series A,
Prerefunded 05/15/01 @ 102 (MBIA)
6.700% ............. 05/15/01 1,310 1,428
-------
South Carolina -- 4.3%
State, Public Service Authority
Revenue Bond, Series B (FGIC)
5.875% ............. 01/01/23 4,000 4,380
-------
Tennessee -- 2.5%
Jackson, GO Refunding and
Improvement
4.500% ............. 03/01/02 300 307
Memphis, GO Refundable
4.700% ............. 08/01/03 300 311
See Accompanying Notes
100
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Tennessee -- Continued
Metropolitan Government Nashville
and Davidson County Water and
Sewer Revenue Refunding
4.700% ............. 01/01/02 $ 200 $ 206
Nashville and Davidson County,
Metropolitan Government GO
6.000% ............. 12/01/10 1,500 1,731
-------
2,555
-------
Texas -- 7.5%
Dallas County, Utilities and
Reclamation Authority, GO
5.000% ............. 02/15/09 600 616
Leander, GO
4.750% ............. 08/15/11 500 504
Plano, Independent School
District GO
6.000% ............. 02/15/06 1,000 1,119
5.900% ............. 02/15/10 1,000 1,085
State, Public Finance Authority GO,
Prerefunded 10/01/00 @ 100
6.375% ............. 10/01/00 4,100 4,305
-------
7,629
-------
Utah -- 2.7%
Intermountain Power Agency
Power Supply Revenue Bond,
Series E (FSA)
6.250% ............. 07/01/09 2,000 2,333
State, Building Ownership Authority
Lease Revenue Saint Facility
Master Lease Program, Series A
5.500% ............. 05/15/99 100 101
Weber County, Municipal Building
Authority Lease Revenue Refunding
4.900% ............. 12/15/05 300 314
-------
2,748
-------
Vermont -- 0.5%
State, Refunding Series A
4.500% ............. 01/15/03 500 513
-------
Virginia -- 1.0%
Richmond, Public Improvement GO,
Series A, Prerefunded 01/15/01 @ 102
6.250% ............. 01/15/21 1,000 1,073
-------
Washington -- 6.2%
State, Higher Education Facility
Authority Revenue Refunding
Pacific Lutheran University Project
4.900% ............. 11/01/05 100 104
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Washington -- Continued
State, Motor Vehicle Fuel Tax GO,
Series 95-D
6.500% ............. 09/01/01 $1,900 $ 2,038
State, Public Power Supply Systems
Revenue Bond Nuclear
Project No. 2, Series C,
Prerefunded 01/01/01 @ 102
6.940% ............. 07/01/10 3,500 3,846
Yakima County, GO Refunding
4.600% ............. 11/01/03 295 305
-------
6,293
-------
West Virginia -- 0.5%
State, School Building Authority
Revenue Refunding Capital
Improvement, Series B
4.500% ............. 07/01/03 300 307
State, University Revenues University
Systems West Virginia University
Projects, Series A
4.500% ............. 04/01/05 250 256
-------
563
-------
Wisconsin -- 4.4%
Appleton, GO
4.300% ............. 04/01/04 365 371
Cottage Grove, GO
4.700% ............. 08/01/07 260 266
Milwaukee, GO Series G
5.000% ............. 06/15/05 300 317
State GO, Series A,
Prerefunded 05/01/02 @ 100
6.300% ............. 05/01/02 3,275 3,545
-------
4,499
-------
TOTAL MUNICIPAL BONDS
(Cost $96,166) ............................... 99,450
-------
MISCELLANEOUS -- 0.5%
Greystone Tax-Exempt Assets Trust
144-A Series 1998-1 Class A
4.300% ............. 06/20/00 468 469
-------
TOTAL MISCELLANEOUS
(Cost $469) .................................. 469
-------
CASH EQUIVALENT -- 1.0%
Federated Tax-Free Money
Market Fund ................... 1,036 1,036
-------
TOTAL CASH EQUIVALENT
(Cost $1,036) ................................ 1,036
-------
See Accompanying Notes
101
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada National Tax Exempt Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
TOTAL INVESTMENTS -- 98.8%
(Cost $97,671) ............................... $100,955
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.2% .................................. 1,269
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 10,023,180 outstanding shares of
beneficial interest .......................... 98,309
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 36,511 outstanding shares of
beneficial interest .......................... 370
Accumulated net realized gain
on investments ............................... 261
Net unrealized appreciation on investments .... 3,284
--------
TOTAL NET ASSETS -- 100.0% ...................... $102,224
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................. $10.16
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A ................... $10.16
========
MAXIMUM OFFERING PRICE PER
SHARE -- Class A ($10.16 divide 95.25%) ...... $10.67
========
- --------------
(A) Security is backed by a letter of credit backed by a major financial
institution.
AMBAC -- American Municipal Bond Assurance Corporation
BAN -- Bond Anticipation Note
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Federal Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
See Accompanying Notes
102
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada National Tax Exempt Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the
Six Months Ended
November 30, 1998 For the Period
(Unaudited) Ended May 31, 1998
-------------------------- ------------------
Class I Class A/4 Class I/2
--------- --------- --------
<S> <C> <C> <C>
Net asset value, beginning of period .................................... $ 10.03 $10.04 $ 10.00
-------- ------ -------
Income From Investment Operations
Net investment income ................................................. 0.31 0.20 0.07
Net gain on securities (realized and unrealized) ...................... 0.09 0.12 0.03
-------- ------ -------
Total from investment operations ................................... 0.40 0.32 0.10
-------- ------ -------
Less Distributions
Dividends from net investment income .................................. (0.27) (0.20) (0.07)
-------- ------ -------
Total distributions ................................................ (0.27) (0.20) (0.07)
-------- ------ -------
Net asset value, end of period .......................................... $ 10.16 $10.16 $ 10.03
======== ====== -------
Total Return ............................................................ 3.61%/7 3.16%/5,7 7.03%/3
Ratios/Supplemental Data
Net assets, end of period (in 000's) .................................. $101,853 $ 371 $80,259
Ratio of expenses to average net assets ............................... 0.28%/1,3 0.53%/3,6 0.33%/1
Ratio of net investment income to average net assets .................. 4.50%/1,3 0.19%/3,6 4.62%/1
Portfolio turnover rate ............................................... 10% 10% 0%
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the periods ended November
30, 1998 and May 31, 1998 would have been 0.83% and 4.04%, 0.87% and 4.08%,
respectively.
2 Class I commenced operations on April 9, 1998.
3 Annualized
4 Class A commenced operations on June 19, 1998.
5 Total return excludes sales charge.
6 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the period ended November
30, 1998 would have been 1.08% and 0.10%.
7 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
103
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- 76.5%
Agriculture -- 4.1%
Canadian Wheat
5.450%..............12/18/98 $45,000 $ 44,884
5.050%..............02/05/99 15,000 14,861
5.120%..............02/12/99 6,830 6,759
Cargill
5.040%..............02/10/99 15,000 14,851
5.020%..............02/10/99 15,000 14,851
5.050%..............02/12/99 25,000 24,744
4.970%..............03/11/99 15,000 14,793
-----------
135,743
-----------
Automobiles & Trucks -- 10.4%
Daimler Benz
5.150%..............03/03/99 15,000 14,803
5.150%..............03/10/99 15,000 14,788
5.020%..............03/19/99 15,000 14,774
5.000%..............03/19/99 15,000 14,775
5.000%..............03/25/99 15,000 14,763
5.060%..............04/07/99 15,000 14,732
Ford Motor Credit
5.050%..............01/14/99 15,000 14,907
5.030%..............01/20/99 15,000 14,895
5.040%..............01/21/99 15,000 14,893
5.040%..............01/27/99 15,000 14,880
5.070%..............01/28/99 15,000 14,877
5.100%..............02/04/99 15,000 14,862
4.950%..............03/18/99 10,000 9,853
GMAC
5.500%..............01/20/99 30,000 29,771
5.040%..............01/21/99 15,000 14,893
5.080%..............01/21/99 10,000 9,928
5.170%..............01/21/99 15,000 14,890
5.160%..............01/26/99 15,000 14,880
4.970%..............03/19/99 15,000 14,776
Paccar
5.420%..............12/03/98 9,000 8,997
5.150%..............02/11/99 7,000 6,928
5.000%..............04/27/99 5,000 4,898
5.675%..............12/31/99 20,000 20,000
TRW
5.250%..............02/16/99 15,000 14,832
-----------
342,595
-----------
Banks -- 0.8%
Wachovia
5.370%..............12/09/98 25,000 24,970
-----------
Building & Construction -- 0.8%
Fluor
5.240%..............01/14/99 10,000 9,936
5.310%..............01/19/99 15,000 14,892
-----------
24,828
-----------
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- Continued
Chemicals & Allied Products -- 5.0%
Akzo Nobel
5.070%..............03/23/99 $15,000 $ 14,763
4.980%..............04/22/99 15,000 14,705
E.I. Dupont Nemours
5.180%..............12/09/98 20,000 19,977
4.980%..............12/16/98 20,000 19,958
5.050%..............12/21/98 25,000 24,930
4.950%..............01/28/99 20,000 19,840
5.010%..............02/10/99 15,000 14,852
Proctor & Gamble
5.450%..............12/17/98 20,000 19,952
5.460%..............12/22/98 15,000 14,952
-----------
163,929
-----------
Computers -- 0.5%
IBM
5.050%..............02/09/99 15,000 14,853
-----------
Drugs & Health Care -- 1.3%
Glaxo Wellcome
5.170%..............02/19/99 12,465 12,322
5.040%..............02/23/99 15,000 14,824
5.090%..............02/25/99 15,000 14,818
-----------
41,964
-----------
Electrical Utilities & Services -- 4.8%
ABB Treasury
5.050%..............02/17/99 25,000 24,726
4.930%..............03/24/99 15,000 14,768
4.950%..............03/25/99 15,000 14,765
National Rural Utilities
5.000%..............01/07/99 15,000 14,923
5.130%..............01/14/99 10,000 9,937
5.050%..............01/22/99 12,700 12,607
5.120%..............02/08/99 15,000 14,853
5.050%..............02/12/99 5,000 4,949
5.000%..............02/17/99 15,000 14,838
Southern
5.250%..............02/05/99 15,000 14,856
5.100%..............02/22/99 15,000 14,824
-----------
156,046
-----------
Electronics & Electrical Equipment -- 4.7%
Eaton
5.100%..............03/11/99 15,000 14,787
5.150%..............03/11/99 15,000 14,785
5.080%..............04/14/99 15,000 14,716
See Accompanying Notes
104
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- Continued
Electronics & Electrical Equipment -- Continued
Motorola
5.200%..............12/03/98 $ 2,000 $ 1,999
5.480%..............12/11/98 7,500 7,489
5.000%..............01/22/99 30,000 29,783
4.980%..............01/26/99 10,070 9,992
5.070%..............01/28/99 15,000 14,877
5.060%..............01/29/99 15,000 14,876
5.080%..............02/12/99 15,000 14,845
5.050%..............02/12/99 15,000 14,846
-----------
152,995
-----------
Entertainment -- 0.6%
Golden Peanut
5.120%..............03/22/99 12,500 12,303
5.020%..............03/31/99 8,000 7,866
-----------
20,169
-----------
Financial Conduit -- 4.5%
Corporate Asset Funding
5.350%..............12/03/98 25,000 24,993
5.130%..............01/19/99 15,000 14,895
5.380%..............01/27/99 10,000 9,915
5.180%..............01/28/99 10,000 9,917
5.100%..............02/02/99 15,000 14,866
Preferred Receivables
5.170%..............12/09/98 8,410 8,400
5.290%..............12/15/98 10,000 9,979
5.270%..............01/05/99 15,000 14,923
5.200%..............01/11/99 15,000 14,911
5.210%..............01/11/99 15,000 14,911
5.320%..............02/05/99 10,000 9,902
-----------
147,612
-----------
Financial Services -- 14.8%
Abbey National
5.350%..............01/20/99 15,000 14,889
5.200%..............02/10/99 15,000 14,846
5.060%..............02/18/99 25,000 24,722
American Express
5.140%..............01/12/99 15,000 14,910
5.000%..............01/21/99 15,000 14,894
Associates
5.150%..............01/20/99 15,000 14,893
5.030%..............01/28/99 15,000 14,878
5.140%..............01/29/99 10,000 9,916
5.350%..............02/16/99 15,000 14,828
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- Continued
Financial Services -- Continued
Associates First
5.090%..............02/05/99 $15,000 $ 14,860
5.180%..............02/11/99 15,000 14,845
5.180%..............02/17/99 15,000 14,832
5.150%..............03/10/99 15,000 14,788
Ciesco
5.150%..............01/14/99 15,000 14,906
5.270%..............02/10/99 15,000 14,844
5.150%..............02/17/99 15,000 14,833
Delaware Funding
5.220%..............01/06/99 10,000 9,948
5.380%..............01/14/99 5,000 4,967
5.150%..............01/15/99 15,000 14,903
5.150%..............01/20/99 15,000 14,893
5.280%..............01/22/99 15,000 14,886
5.280%..............01/28/99 15,000 14,872
GE Capital
5.470%..............12/22/98 10,000 9,968
5.480%..............01/20/99 15,000 14,886
5.360%..............01/26/99 15,000 14,875
5.050%..............02/08/99 6,000 5,942
5.240%..............02/10/99 15,000 14,845
5.440%..............02/10/99 10,000 9,893
5.070%..............02/11/99 15,000 14,848
John Deere Capital
5.180%..............12/03/98 15,000 14,996
5.150%..............02/17/99 15,000 14,833
5.050%..............02/18/99 10,000 9,889
Norwest
5.050%..............01/21/99 25,000 24,821
5.040%..............01/28/99 15,000 14,878
-----------
481,827
-----------
Food & Beverage -- 3.8%
Archer Daniels
5.100%..............03/17/99 15,000 14,775
5.020%..............04/01/99 15,000 14,747
Campbell Soup
5.420%..............02/24/99 15,000 14,808
Coca Cola
5.120%..............12/08/98 25,000 24,975
5.120%..............12/18/98 25,000 24,940
4.930%..............03/12/99 15,000 14,793
4.940%..............03/11/99 15,000 14,794
-----------
123,832
-----------
Gas/Natural Gas -- 0.6%
Northern Illinois Gas
5.460%..............02/01/99 21,500 21,298
-----------
See Accompanying Notes
105
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- Continued
Household Products -- 0.7%
Clorox
5.140%..............12/11/98 $ 5,000 $ 4,993
5.100%..............12/23/98 10,000 9,969
Stanley Works
5.100%..............02/01/99 8,400 8,326
-----------
23,288
-----------
Insurance -- 5.9%
Allstate
5.320%..............01/20/99 15,000 14,889
5.170%..............01/28/99 15,000 14,875
American General
5.470%..............12/22/98 15,000 14,952
5.150%..............02/09/99 15,000 14,850
5.070%..............02/11/99 15,000 14,848
5.070%..............02/25/99 10,000 9,879
5.110%..............03/04/99 15,000 14,802
Bass Financial
5.320%..............01/21/99 11,309 11,224
NY Life
5.180%..............02/23/99 15,000 14,819
5.120%..............03/17/99 15,000 14,774
Prudential Funding
5.310%..............01/20/99 15,000 14,889
5.150%..............02/10/99 15,000 14,848
5.180%..............02/18/99 15,000 14,829
5.180%..............02/24/99 10,000 9,878
-----------
194,356
-----------
Medical & Medical Services -- 2.6%
Diageo
5.120%..............02/03/99 15,000 14,863
5.180%..............02/09/99 15,000 14,849
5.180%..............02/16/99 10,000 9,889
5.170%..............02/22/99 15,000 14,821
4.960%..............03/24/99 15,000 14,766
5.000%..............04/07/99 15,000 14,735
-----------
83,923
-----------
Paper & Paper Products -- 1.2%
Kimberly Clark
5.400%..............12/08/98 19,265 19,245
5.100%..............01/11/99 21,000 20,878
-----------
40,123
-----------
Personal Service Company, IRS Processing -- 1.2%
Block Financial
5.100%..............02/19/99 21,000 20,762
5.050%..............02/26/99 5,511 5,444
5.250%..............02/26/99 15,000 14,810
-----------
41,016
-----------
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- Continued
Petroleum, Gas & Oil Refinary -- 3.4%
Amoco
5.120%..............12/22/98 $20,950 $ 20,887
Atlantic Richfield
5.000%..............02/17/99 25,000 24,729
4.900%..............03/17/99 15,000 14,784
Stat Oil
5.320%..............01/22/99 15,000 14,885
5.130%..............01/25/99 20,000 19,843
4.850%..............02/08/99 16,000 15,851
-----------
110,979
-----------
Photographic Equipment & Supplies -- 1.0%
Xerox
5.030%..............12/23/98 19,400 19,340
5.000%..............01/15/99 15,000 14,906
-----------
34,246
-----------
Retail -- 0.3%
Heinz
5.150%..............12/01/98 8,690 8,690
-----------
Telephones & Telecommunication -- 2.7%
Bell South
4.900%..............01/21/99 25,000 24,826
5.420%..............02/17/99 12,500 12,353
Lucent Technologies
5.020%..............12/02/98 25,000 24,997
Southern California Edison
5.080%..............12/22/98 25,000 24,926
-----------
87,102
-----------
Wholesale -- 1.1%
Avnet
5.350%..............01/14/99 5,000 4,967
5.250%..............01/20/99 5,000 4,964
5.270%..............02/10/99 10,000 9,896
5.090%..............02/17/99 10,000 9,890
5.120%..............02/22/99 5,000 4,941
-----------
34,658
-----------
TOTAL COMMERCIAL PAPER
(Cost $2,511,042)............................ 2,511,042
-----------
FLOATING RATE NOTES -- 2.6%
Allstate Funding (A)
5.738%..............08/31/99 10,000 10,000
5.222%..............12/01/99 10,000 10,000
John Hancock Mutual Life (A)
5.208%..............10/22/98 15,000 15,000
J.P. Morgan Guarantee Trust (A)
5.277%..............11/29/99 15,000 15,000
Key Bank, NA (A)
5.105%..............09/23/99 25,000 24,990
Travelers Funding (A)
5.718%..............08/17/99 10,000 10,000
-----------
See Accompanying Notes
106
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
TOTAL FLOATING RATE NOTES
(Cost $84,990).............................. $ 84,990
-----------
REPURCHASE AGREEMENTS -- 21.3%
First Boston
5.500%..............12/01/98 $320,000 320,000
(dated 11/30/98, matures
12/01/98, repurchase price
$320,048,889; collateralized
by various FHLMC and
FNMA obligations: total
market value $331,405,170)
Goldman Sachs
5.470%..............12/01/98 107,000 107,000
(dated 11/30/98, matures
12/01/98, repurchase price
$107,016,258; collateralized
by various FHLMC and
FNMA obligations: total
market value $109,140,000)
Lehman Brothers
5.410%..............12/01/98 136,647 136,647
(dated 11/30/98, matures
12/01/98, repurchase price
$136,667,535; collateralized
by various FHLMC and
FNMA obligations: total
market value $139,381,334)
Prudential
4.950%..............12/01/98 20,000 20,000
(dated 11/30/98, matures
12/01/98, repurchase price
$20,002,750; collateralized
by various FHLMC and
FNMA obligations: total
market value $20,400,032)
Prudential
5.400%..............12/01/98 115,000 115,000
(dated 11/30/98, matures
12/01/98, repurchase price
$115,017,250; collateralized
by various FHLMC and
FNMA obligations: total
market value $117,300,230)
TOTAL REPURCHASE AGREEMENTS
(Cost $698,647)............................. 698,647
-----------
Par Value
(000) (000)
----- -----
CASH EQUIVALENT -- 0.4%
Financial Square Premium Money
Market Fund..........................$12,936 $ 12,936
-----------
TOTAL CASH EQUIVALENT
(Cost $12,936)............................... 12,936
-----------
TOTAL INVESTMENTS -- 100.8%
(Cost $3,307,615)............................ $ 3,307,615
===========
OTHER ASSETS AND LIABILITIES,
NET -- (0.8%)................................ (24,675)
-----------
Net Assets:
Portfolio Shares of Class I
(unlimited authorization --
no par value) based on
2,086,036,469 outstanding
shares of beneficial interest............... 2,086,036
Portfolio Shares of Class A
(unlimited authorization --
no par value) based on
1,196,671,627 outstanding
shares of beneficial interest............... 1,196,672
Portfolio Shares of Class B
(unlimited authorization --
no par value) based on
90,764 outstanding shares of
beneficial interest......................... 91
Undistributed net investment income.......... 156
Accumulated net realized loss
on investments.............................. (15)
-----------
TOTAL NET ASSETS -- 100.0% $ 3,282,940
===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I............................ $1.00
===========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS A............................ $1.00
===========
NET ASSET VALUE, AND OFFERING
PRICE PER SHARE -- CLASS B................... $1.00
===========
- ----------
(A) Variable Rate Security -- The rate reflected on the Statement of Net
Assets is the rate in effect on November 30, 1998.
See Accompanying Notes
107
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Money Market Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six For the Year Ended May 31,
Months Ended --------------------------------------------------------------
November 30, 1998
(Unaudited) 1998 1997
-------------------------------------------- ------------------------------------ ------------------------
Class I Class A Class B Class I Class A Class B4 Class I Class A
------- ------- ------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............$ 1.00 $ 1.00 $1.00 $ 1.00 $ 1.00 $1.00 $ 1.00 $ 1.00
---------- ---------- ----- ---------- --------- ----- ---------- --------
Income From
Investment
Operations
Net investment
income............ 0.03 0.02 0.02 0.05 0.05 0.05 0.05 0.05
Less Distributions
Dividends from
net investment
income........... (0.03) (0.02) (0.02) (0.05) (0.05) (0.05) (0.05) (0.05)
---------- ---------- ----- ---------- --------- ----- ---------- --------
Net asset value,
end of period.....$ 1.00 $ 1.00 $1.00 $ 1.00 $ 1.00 $1.00 $ 1.00 $ 1.00
========== ========== ===== ========== ========= ===== ========== ========
Total Return........ 5.21%/5 5.09%/5 4.47%/5 5.39% 5.26% 5.04% 5.19% 5.09%
Ratios/Supplemental
Data
Net assets, end
of period
(in 000's).......$2,086,035 $1,196,814 $ 91 $1,911,689 $696,893 $ 5 $1,943,021 $346,172
Ratio of
expenses to
average
net assets....... 0.42%/1,5 0.55%/2,5 1.22%/3,5 0.38%/1 0.51%/2 1.22%/3 0.37%/1 0.47%/2
Ratio of net
investment
income to
average net
assets........... 5.09%/1,5 4.96%/2,5 4.93%/3,5 5.27%/1 5.14%/2 4.39%/3 5.07%/1 4.97%/2
<CAPTION>
For the Year Ended May 31,
------------------------------------------------------------------------------
1996 1995 1994
------------------------- ------------------------- ----------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period............$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- -------- -------- -------
Income From
Investment
Operations
Net investment
income............ 0.05 0.05 0.05 0.05 0.03 0.03
Less Distributions
Dividends from
net investment
income........... (0.05) (0.05) (0.05) (0.05) (0.03) (0.03)
---------- -------- ---------- -------- -------- -------
Net asset value,
end of period.....$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ========== ======== ======== =======
Total Return........ 5.45% 5.35% 5.11% 5.01% 2.91% 2.81%
Ratios/Supplemental
Data
Net assets, end
of period
(in 000's).......$1,344,414 $343,087 $1,083,243 $175,192 $743,377 $67,229
Ratio of
expenses to
average
net assets....... 0.37%/1 0.47%/2 0.37%/1 0.47%/2 0.43%/1 0.53%/2
Ratio of net
investment
income to
average net
assets........... 5.30%/1 5.18%/2 5.07%/1 5.12%/2 2.94%/1 2.78%/2
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the periods ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.52% and
4.99%, 0.48% and 5.17%, and .47% and 4.97%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for Class I for the years ended May 31,
1996 and 1995 would have been .48% and 5.19% and .48% and 4.96%,
respectively. The operating expense ratio and the net investment income
ratio before fee waiver by the Investment Advisers for Class I for the year
ended May 31, 1994 would have been .45% and 2.92%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the periods ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.65% and
4.86%, 0.61% and 5.08%, and .57% and 4.87%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for Class A for the years ended May 31,
1996 and 1995 would have been .58% and 5.07% and .58% and 5.01%,
respectively. The operating expense ratio and net investment income ratio
before fee waivers by the Investment Advisers for Class A for the year ended
May 31, 1994 would have been .55% and 2.76%, respectively.
3 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for the Class B for the periods ended
November 30, 1998 and May 31, 1998 would have been 1.32% and 4.14%, and
1.27% and 4.31%, respectively.
4 The Money Market Fund Class B commenced operations January 5, 1998.
5 Annualized.
See Accompanying Notes
108
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Government Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 78.8%
Federal Farm Credit Bank -- 8.0%
5.020% .............12/01/98 $23,100 $ 23,100
5.000% .............12/03/98 15,000 14,996
5.360% .............12/15/98 8,895 8,876
4.770% .............12/21/98 22,000 21,942
5.000% .............12/28/98 15,540 15,482
4.920% .............01/04/99 15,000 14,930
4.650% .............02/01/99 16,000 15,872
5.220% .............02/05/99 6,690 6,626
4.750% .............03/12/99 15,000 14,800
----------
136,624
----------
Federal Home Loan Bank -- 19.6%
5.340% .............12/04/98 21,562 21,552
4.750% .............12/11/98 10,260 10,246
5.230% .............12/16/98 15,000 14,967
4.750% .............12/18/98 20,000 19,955
5.354% .............12/29/98 14,225 14,166
4.850% .............12/30/98 30,000 29,871
5.035% .............01/04/99 10,000 9,952
5.050% .............01/08/99 15,000 14,920
5.023% .............01/11/99 10,000 9,943
5.000% .............01/19/99 10,000 9,932
5.370% .............01/20/99 15,000 14,888
4.832% .............01/25/99 15,000 14,889
4.890% .............01/29/99 15,000 14,880
4.940% .............01/29/99 10,000 9,919
5.230% .............02/03/99 15,000 14,861
4.680% .............02/10/99 10,000 9,908
4.710% .............02/16/99 10,800 10,691
4.880% .............02/16/99 15,000 14,843
5.350% .............02/17/99 10,000 9,884
4.890% .............02/19/99 15,000 14,837
4.947% .............02/24/99 15,000 14,825
4.920% .............03/24/99 7,140 7,030
4.915% .............03/31/99 13,373 13,154
5.060% .............11/10/99 15,000 14,992
----------
335,105
----------
Federal Home Loan Mortgage Corporation -- 22.8%
5.360% .............12/03/98 12,104 12,100
5.380% .............12/09/98 14,762 14,744
4.960% .............12/22/98 15,000 14,957
4.775% .............12/23/98 15,000 14,956
5.035% .............01/06/99 20,000 19,899
5.032% .............01/11/99 25,000 24,857
5.110% .............01/13/99 20,000 19,878
5.020% .............01/15/99 15,192 15,097
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Federal Home Loan Mortgage Corporation -- Continued
4.753% .............01/19/99 $10,000 $ 9,935
5.000% .............01/29/99 10,000 9,918
4.960% .............02/02/99 15,000 14,870
4.712% .............02/12/99 10,000 9,904
5.020% .............02/16/99 15,000 14,839
4.950% .............02/17/99 14,500 14,345
4.960% .............02/19/99 15,000 14,835
4.930% .............02/23/99 10,000 9,885
4.680% .............02/24/99 10,000 9,890
5.000% .............02/25/99 14,821 14,821
5.070% .............02/25/99 15,000 14,818
5.000% .............02/26/99 20,000 19,763
5.020% .............02/26/99 10,000 9,879
4.590% .............03/09/99 10,000 9,875
4.830% .............03/09/99 10,000 9,869
4.910% .............03/12/99 10,000 9,862
4.830% .............03/17/99 16,000 15,772
5.110% .............03/22/99 10,000 9,842
4.900% .............04/09/99 15,000 14,737
4.900% .............04/12/99 15,000 14,731
----------
388,878
----------
Federal National Mortgage Association -- 21.1%
5.330% .............12/04/98 20,000 19,991
5.340% .............12/09/98 20,000 19,976
5.336% .............12/10/98 15,000 14,980
5.280% .............12/14/98 10,000 9,981
5.438% .............12/15/98 10,000 9,979
4.930% .............12/21/98 20,000 19,945
5.338% .............12/30/98 10,000 9,957
5.000% .............01/04/99 20,000 19,906
5.050% .............01/07/99 10,000 9,948
5.370% .............01/14/99 15,000 14,902
5.370% .............01/19/99 15,000 14,890
4.740% .............01/21/99 15,000 14,899
4.730% .............01/25/99 11,200 11,119
4.772% .............01/25/99 10,000 9,927
5.360% .............01/28/99 10,708 10,616
4.970% .............02/04/99 10,000 9,910
4.960% .............02/05/99 15,000 14,864
4.620% .............02/09/99 20,000 19,820
4.650% .............02/09/99 15,000 14,864
4.830% .............03/05/99 10,000 9,874
4.930% .............03/08/99 15,000 14,804
4.584% .............03/15/99 10,000 9,868
5.106% .............03/15/99 5,369 5,290
See Accompanying Notes
109
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Government Money Market Fund
November 30, 1998
(Unaudited)
Par (000)/ Value
Maturity Shares (000)
-------- ---------- -----
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- Continued
Federal National Mortgage Association -- Continued
4.900% .............03/15/99 $10,000 $ 9,858
5.000% .............03/15/99 15,000 14,783
4.980% .............03/16/99 5,200 5,124
4.870% .............04/01/99 10,000 9,836
4.890% .............04/20/99 10,000 9,810
----------
359,721
----------
Student Loan Marketing Association -- 2.3%
Note (A)
5.700% .............11/12/99 15,000 15,000
Discount Note
4.750% .............11/24/99 15,000 14,997
4.770% .............01/27/99 10,000 9,925
----------
39,922
----------
Tennessee Valley Authority -- 5.0%
5.020% .............12/14/98 10,000 9,982
4.790% .............12/18/98 15,000 14,966
4.970% .............12/18/98 6,300 6,285
4.900% .............01/12/99 15,000 14,914
4.900% .............01/21/99 15,000 14,896
4.920% .............01/26/99 15,000 14,885
4.910% .............02/22/99 10,000 9,887
----------
85,815
----------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $1,346,065) ........................... 1,346,065
----------
REPURCHASE AGREEMENTS -- 19.9%
First Boston
5.500% .............12/01/98 150,000 150,000
(dated 11/30/98, matures
12/01/98, repurchase price
$150,022,917; collateralized
by various FHLMC, FNMA
and GNMA obligations: total
market value $154,202,320)
Par Value
Maturity (000) (000)
-------- ----- -----
REPURCHASE AGREEMENTS -- Continued
Goldman Sachs
5.470% .............12/01/98 $50,000 $ 50,000
(dated 11/30/98, matures
12/01/98, repurchase price
$50,007,597; collateralized by
FNMA obligations: total
market value $51,000,000)
Lehman Brothers
5.410% .............12/01/98 64,421 64,421
(dated 11/30/98, matures
12/01/98, repurchase price
$64,430,681; collateralized
by various FHLMC and
FNMA obligations: total
market value $65,714,102)
Prudential
4.950% .............12/01/98 20,000 20,000
(dated 11/30/98, matures
12/01/98, repurchase price
$20,002,750; collateralized
by various FHLMC, FNMA
and U.S Treasury obligations:
total market value $20,400,044)
Prudential
5.400% .............12/01/98 55,000 55,000
(dated 11/30/98, matures
12/01/98, repurchase price
$55,008,250; collateralized by
various FHLMC, FNMA and
U.S Treasury obligations:
total market value $56,100,800)
TOTAL REPURCHASE AGREEMENTS
(Cost $339,421) .............................. 339,421
----------
CASH EQUIVALENT -- 1.8%
Goldman Sachs Financial Square Government
Money Market Fund ....................30,294 30,294
----------
TOTAL CASH EQUIVALENT
(Cost $30,294) ............................... 30,294
----------
TOTAL INVESTMENTS -- 100.5%
(Cost $1,715,780) ............................ $1,715,780
==========
OTHER ASSETS AND LIABILITIES,
NET -- (0.5%) ................................ (7,653)
----------
See Accompanying Notes
110
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Government Money Market Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
Net Assets:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
1,082,406,287 outstanding shares of
beneficial interest .......................... $1,082,406
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
625,744,200 outstanding shares of
beneficial interest .......................... 625,744
Overdistributed net investment income ......... (21)
Accumulated net realized loss
on investments ............................... (2)
----------
TOTAL NET ASSETS -- 100.0% ...................... $1,708,127
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................. $1.00
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS A ............................ $1.00
==========
(A) Variable Rate Security--The rate reflected on the Statement of Net Assets is
the rate in effect on November 30, 1998.
See Accompanying Notes
111
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Government Money Market Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the
Six Months Ended For the Year Ended May 31,
November 30, 1998 -----------------------------------------------------
(Unaudited) 1998 1997
----------------------- ----------------------- -------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- ---------- -------- -------- --------
Income From Investment
Operations
Net investment income ........ 0.03 0.02 0.05 0.05 0.05 0.05
Less Distributions
Dividends from net
investment income ........... (0.03) (0.02) (0.05) (0.05) (0.05) (0.05)
---------- -------- ---------- -------- -------- --------
Net asset value,
end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ========== ======== ======== ========
Total Return ................... 5.13%/3 4.96%/3 5.30% 5.17% 5.15% 5.04%
Ratios/Supplemental Data
Net assets, end of
period (in 000's) ........... $1,082,386 $625,741 $1,137,078 $247,281 $811,622 $159,129
Ratio of expenses to
average net assets .......... 0.43%/1,3 0.58%/2,3 0.40%/1 0.52%/2 0.36%/1 0.47%/2
Ratio of net investment
income to average
net assets .................. 5.15%/1,3 4.93%/2,3 5.17%/1 5.05%/2 5.03%/1 4.93%/2
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
-------------------------------------------------------------------
1996 1995 1994
--------------------- ------------------ ------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Income From Investment
Operations
Net investment income ........ 0.05 0.05 0.05 0.05 0.03 0.03
Less Distributions
Dividends from net
investment income ........... (0.05) (0.05) (0.05) (0.05) (0.03) (0.03)
-------- -------- -------- ------- -------- ------
Net asset value,
end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ======== ======
Total Return ................... 5.41% 5.31% 4.97% 4.87% 2.91% 2.80%
Ratios/Supplemental Data
Net assets, end of
period (in 000's) ........... $741,894 $131,194 $618,058 $19,174 $768,337 $6,945
Ratio of expenses to
average net assets .......... 0.36%/1 0.46%/2 0.39%/1 0.51%/2 0.42%/1 0.52%/2
Ratio of net investment
income to average
net assets .................. 5.27%/1 5.13%/2 4.83%/1 5.01%/2 2.92%/1 2.75%/2
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the periods ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.53% and
5.05%, 0.50% and 5.07%, and .46% and 4.93%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for Class I for the years ended May 31,
1996 and 1995 would have been .47% and 5.16% and .50% and 4.72%,
respectively. The operating expense ratio and the net investment income
ratio before fee waivers by the Investment Advisers for Class I for the
years ended May 31, 1994 and 1993 would have been .44% and 2.90% and .46%
and 2.82%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the periods ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.68% and
4.82%, 0.62% and 4.95%, and .57% and 4.83%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for Class A for the years ended May 31,
1996 and 1995 would have been .57% and 5.02% and .63% and 4.90%,
respectively. The operating expense ratio and net investment income ratio
before fee waivers by the Investment Advisers for Class A for the years
ended May 31, 1994 and 1993 would have been .54% and 2.73%, and .56% and
2.72%, respectively.
3 Annualized.
See Accompanying Notes
112
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Treasury Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
U.S. TREASURY OBLIGATIONS -- 94.4%
U.S. Treasury Bills+ -- 90.7%
4.790% ............12/10/98 $24,000 $ 23,977
4.665% ............12/24/98 35,000 34,903
4.430% ............12/31/98 10,000 9,965
5.030% ............01/07/99 55,000 54,765
3.905% ............01/14/99 42,000 41,801
3.850% ............01/21/99 61,000 60,632
4.070% ............01/28/99 15,000 14,885
4.420% ............02/04/99 40,000 39,684
4.550% ............02/04/99 12,000 11,901
4.440% ............02/11/99 25,000 24,781
4.390% ............02/18/99 20,000 19,800
3.805% ............02/25/99 15,000 14,842
4.410% ............03/04/99 15,000 14,830
--------
366,766
--------
U.S. Treasury Note -- 3.7%
5.125% ............12/31/98 15,000 14,999
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $381,765) ............................. 381,765
--------
CASH EQUIVALENTS -- 5.9%
Federated US Treasury Cash Reserve
Money Market Fund .................. 10,689 10,689
Goldman Sachs Financial Square Treasury
Money Market Fund .................. 13,239 13,239
--------
TOTAL CASH EQUIVALENTS
(Cost $23,928) .............................. 23,928
--------
TOTAL INVESTMENTS -- 100.3%
(Cost $405,693) ............................. $405,693
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.3%) ............................... (1,091)
--------
Value
(000)
-----
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
333,779,099 outstanding shares of
beneficial interest ......................... $333,779
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
70,662,173 outstanding shares of
beneficial interest ......................... 70,662
Undistributed net investment income 64
Accumulated net realized gain
on investments .............................. 97
--------
TOTAL NET ASSETS -- 100.0% $404,602
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I ........................ $1.00
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS A ........................ $1.00
========
+ Effective Yield.
See Accompanying Notes
113
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Treasury Money Market Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the
Six Months Ended For the Year Ended May 31,
November 30, 1998 ------------------------------------------------
(Unaudited) 1998 1997
----------------------- ------------------- -----------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- -------- ------ -------- ------
Income From Investment
Operations
Net investment income ............... 0.02 0.02 0.05 0.05 0.05 0.05
Less Distributions
Dividends from net
investment income .................. (0.02) (0.02) (0.05) (0.05) (0.05) (0.05)
-------- ------- -------- ------ -------- ------
Net asset value,
end of period ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ====== ======== ======
Total Return ......................... 4.59%/5 4.44%/5 4.95% 4.82% 4.89% 4.79%
Ratios/Supplemental Data
Net assets, end of period
(in 000's) ....................... $333,923 $70,679 $359,605 $7,222 $276,327 $5,680
Ratio of expenses to
average net assets ................ 0.40%/1,5 0.51%/2,5 0.39%/1 0.51%/2 0.37%/1 0.47%/2
Ratio of net investment
income to average
net assets ........................ 4.55%/1,5 4.22%/2,5 4.84%/1 4.71%/2 4.79%/1 4.68%/2
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
----------------------------------------------------
1996 1995
-------------------- ----------------------
Class I Class A Class I Class A
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net asset value,
beginning of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- -------- -------
Income From Investment
Operations
Net investment income ............... 0.05 0.05 0.05 0.02
Less Distributions
Dividends from net
investment income .................. (0.05) (0.05) (0.05) (0.02)
-------- ------- ------- -------
Net asset value,
end of period ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= =======
Total Return ......................... 5.07% 4.97% 4.86%/5 5.41%/5
Ratios/Supplemental Data
Net assets, end of period
(in 000's) ....................... $312,255 $ 4,355 $142,877 $ 366
Ratio of expenses to
average net assets ................ 0.41%/1 0.52%/2 0.43%/1,5 0.56%/2,5
Ratio of net investment
income to average
net assets ........................ 4.88%/1 4.77%/2 4.78%/1,5 5.35%/2,5
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for the class I for the periods ended
November 30, 1998, May 31, 1998 and May 31, 1997 would have been 0.45% and
4.50%, 0.44% and 4.79%, and .42% and 4.74%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for the class I for the years ended May
31, 1996 and for the period ended May 31, 1995 would have been .47% and
4.82% and .49% and 4.72%, respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for the class A for the periods ended
November 30, 1998, May 31, 1998 May 31, 1997 and would have been 0.56% and
4.17%, 0.56% and 4.66%, and .52% and 4.63%, respectively. The operating
expense ratio and net investment income ratio before fee waivers by the
Investment Advisers and Custodian for the Class A for the year ended May 31,
1996 and for the period ended May 31, 1995 would have been .58% and 4.71%
and .63% and 5.28%, respectively.
3 Class I commenced operations on June 16, 1994.
4 Class A commenced operations on December 22, 1994.
5 Annualized.
See Accompanying Notes
114
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Municipal Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 95.9%
Ohio -- 95.9%
Adena Health System,
Series 1998 (A)
3.200%..........................12/01/23 $1,000 $ 1,000
Bay Village, BAN
3.790%..........................07/09/99 500 501
Butler County, BAN
3.500%..........................03/19/99 425 426
City of Ashland GO
3.950%..........................07/15/99 500 501
City of Wooster Waterworks
System Improvement GO
3.300%..........................10/14/99 500 500
Columbus GO
Series 1995-1 (A)
3.000%..........................06/01/16 4,900 4,900
Cuyahoga County Hospital
Authority Revenue Bond,
Cleveland Clinic Foundation,
Series 1996-A (A)
3.150%..........................01/01/26 2,000 2,000
Series 1997-B (AMBAC) (A)
3.150%..........................01/01/16 500 500
Series 1997-D (A)
3.300%..........................01/01/26 5,000 5,000
Series B, AMBAC (A)
3.150%..........................01/01/16 700 700
Euclid County School District
BAN
3.990%..........................06/17/99 1,242 1,245
Evandale, Industrial Development
Authority Revenue Bond (A)
3.300%..........................09/01/15 3,600 3,600
Franklin County Holy Cross
Health System (A)
3.100%..........................06/01/16 5,000 5,000
Franklin County Hospital
Facilities Revenue Bond,
Lutheran Senior City Project,
Series 1994 (A)
3.450%..........................05/01/15 300 300
Hamilton County BAN,
Series 1998
3.870%..........................04/08/99 1,240 1,242
Hamilton County Hospital
Facilitites Revenue Bond/
Bethesda Hospital (A)
3.350%..........................02/15/24 1,600 1,600
Highland Heights, BAN
3.250%..........................11/18/99 1,200 1,203
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Lima Memorial Hospital,
Series 1996 (A)
3.250%..........................12/01/10 $4,000 $ 4,000
Lorain County IDR Regional
Medical Center (A)
3.500%..........................05/01/22 1,485 1,485
Massilon, Parks and Recreation BAN
4.970%..........................01/15/99 1,800 1,804
Mayfield School District, BAN
4.000%..........................04/22/99 650 652
Medina County, GO
3.940%..........................06/17/99 1,000 1,002
Miamisburg, BAN
3.520%..........................10/14/99 560 561
Ohio State University General
Receipts (A)
3.050%..........................12/01/07 2,500 2,500
3.000%..........................12/01/27 3,890 3,890
Series 1986-B (A)
3.100%..........................12/01/06 2,080 2,080
Ohio Water Development Authority
Duquesne Light, TECP
3.300%..........................01/08/99 2,000 2,000
Ross County Hospital Revenue
Bond, Medical Center
Hospital Project (A)
3.200%..........................12/01/20 550 550
Sandusky City, GO
3.875%..........................09/16/99 1,000 1,003
Scioto County, Hospital Revenue
Bond, VHA Central Capital Asset
Finance Program, (AMBAC) (A)
Series B
3.200%..........................12/01/25 2,525 2,525
Series F
3.200%..........................12/01/25 2,000 2,000
State, Air Quality Development
Authority Revenue Bond, (A)
Cincinnati Gas and Electric
Company,
3.300%..........................09/01/30 6,300 6,300
Series 1985 A
3.750%..........................12/01/15 1,600 1,600
Series B
3.750%..........................12/01/15 4,300 4,300
Cleveland Electric Illumination
Company
2.900%..........................03/10/99 1,000 1,000
See Accompanying Notes
115
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Municipal Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
JMG Funding LP,
Project 1994
3.150%..........................04/01/28 $1,000 $ 1,000
Project 1995 A
3.450%..........................04/01/29 1,000 1,000
State Arts Facilities Building Authority
Revenue Bond
4.750%..........................10/01/99 1,200 1,218
State, Building Authority
Revenue Bond Correctional
Facility, Series A,
Prerefunded 03/01/99 @ 100
7.350%..........................03/01/05 1,000 1,030
State, GO
4.000%..........................08/01/99 500 503
Series B
5.000%..........................08/01/99 300 303
State, Higher Education Facilities
Revenue Bond,
Case Western Reserve University
5.000%..........................10/01/99 1,000 1,015
Kenyon College
3.200%..........................08/01/03 2,000 2,000
Mount Union College (A)
3.450%..........................09/01/20 910 910
Oberlin College Project,
Series 1985 (A)
3.100%..........................10/01/15 4,650 4,650
State, Pollution Control Revenue
Bond/Sohio Project (A)
3.300%..........................05/01/22 500 500
State, Public Facilities Commission,
Series II
4.250%..........................12/01/98 2,000 2,000
Series A-1
4.500%..........................12/01/99 1,250 1,270
Series II - B
4.500%..........................11/01/99 800 809
State, Solid Waste Revenue
Bond/BP Exploration Oil Project (A)
3.450%..........................02/01/33 2,000 2,000
State, Water Development Authority,
Series B (A)
3.150%..........................08/01/20 2,000 2,000
Summit County, BAN Series B
3.630%..........................11/18/99 2,000 2,014
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Toledo, City Services Special
Assessment Notes (A)
3.400%..........................06/01/00 $2,000 $ 2,000
University of Toledo General
Receipts (FGIC)
3.600%..........................06/01/99 285 285
Warren County Health Facilities/
Otterbein Homes (A)
3.150%..........................07/01/23 2,000 2,000
Wooster, Industrial Development
Revenue Bond, Allen Group
Project (A)
3.400%..........................12/01/10 2,100 2,100
--------
TOTAL MUNICIPAL BONDS
(Cost $100,077).......................................... 100,077
--------
CASH EQUIVALENTS -- 5.6%
Blackrock Funds Ohio
Municipal Money Market
Portfolio................................. 1,100 1,100
Federated Ohio Municipal Cash
Fund...................................... 4,729 4,729
--------
TOTAL CASH EQUIVALENTS
(Cost $5,829)............................................ 5,829
--------
TOTAL INVESTMENTS -- 101.5%
(Cost $105,906)*......................................... $105,906
========
OTHER ASSETS AND LIABILITIES,
NET -- (1.5%)............................................ (1,572)
--------
NET ASSETs:
Portfolio Shares of Class I
(unlimited authorization -- no
par value) based on 97,758,113
outstanding shares of beneficial
interest................................................. 97,758
Portfolio Shares of Class A
(unlimited authorization -- no
par value) based on 6,575,337
outstanding shares of beneficial
interest.................................................. 6,575
Undistributed net investment income........................ 1
--------
TOTAL NET ASSETS -- 100.0%................................... $104,334
========
See Accompanying Notes
116
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Ohio Municipal Money Market Fund
November 30, 1998
(Unaudited)
Value
(000)
-----
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS I.......................... $1.00
========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE
PER SHARE -- CLASS A.......................... $1.00
========
- ------------
(A) Security is backed by a letter of credit backed by a major financial
institution.
AMBAC -- American Municipal Bond Assurance Corporation
BAN -- Bond Anticipation Note
FGIC -- Federal Guaranty Insurance Corporation
GO -- General Obligation
TECP -- Tax Exempt Commercial Paper
VHA -- Veterans Housing Administration
See Accompanying Notes
117
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Ohio Municipal Money Market Fund
For a Fund Share Outstanding Throughout Each Period
For the Period
Ended November 30, 1998
(Unaudited)
----------------------------
Class I/3 Class A/3
----------- -----------
Net asset value, beginning of period .............. $ 1.00 $1.00
------ -----
Income From Investment Operations
Net investment income ........................... 0.01 0.00
------ -----
Less Distributions
Dividends from net investment income ............ (0.01) (0.00)
------ -----
Net asset value, end of period .................... $ 1.00 $1.00
====== =====
Total Return ...................................... 0.63%/4 0.21%/4
Ratios/Supplemental Data
Net assets, end of period (in 000's) ............ $97,759 $6,575
Ratio of expenses to average net assets ......... 0.33%/1 0.48%/2
Ratio of net investment income/(loss)
to average net assets........................... 2.95%/1 0.96%/2
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser for Class I for the period ended
November 30, 1998, would have been 0.53% and 2.70%, respectively.
2 The operating expense ratio and the net investment income ratio before
fee waivers by the Investment Adviser for Class A for the period ended
November 30, 1998, would have been 0.68% and 0.89%, respectively.
3 Class I and Class A commenced operations on
September 15, 1998 and November 2, 1998.
4 Returns are for the period indicated and have not been annualized.
See Accompanying Notes
118
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 98.7%
Pennsylvania -- 98.7%
Adams County, TRAN, Series 1998
4.070% ............ 12/31/98 $ 1,000 $ 1,000
Allegheny County, Duquesne
Light Revenue Bond
3.050% ............ 01/28/99 2,500 2,500
Allegheny County, Higher Education
Building Authority Revenue Bond,
University of Pittsburgh Project,
Series 1985 B (B)
3.000% ............ 07/01/15 1,180 1,180
Allegheny County Hospital Authority
University Healthcare
Revenue Bond (MBIA)
3.300% ............ 03/01/20 200 200
Allegheny County, Hospital
Development Authority
Revenue Bond,
Presbyterian University Healthcare
System
3.300% ............ 03/01/20 1,050 1,050
Presbyterian University
Hospital Project,
Series B-3 (A) (B)
3.300% ............ 03/01/18 945 945
St. Francis System (A) (B)
3.100% ............ 11/01/27 2,000 2,000
Allegheny County, Industrial
Development Authority Revenue Bond
Longwood at Oakmont Project (A)
3.250% ............ 07/01/29 2,500 2,500
USX Project
3.100% ............ 01/22/29 4,100 4,100
3.200% ............ 01/22/29 1,000 1,000
3.250% ............ 01/22/29 3,000 3,000
Allegheny County Project, Series E
3.750% ............ 11/01/99 200 201
Allentown, Water Revenue Bond
(AMBAC)
4.500% ............ 07/15/99 150 151
Beaver County, Industrial Development
Authority Duquesne Light TECP
3.375% ............ 12/07/98 2,400 2,400
3.250% ............ 01/07/99 2,000 2,000
3.350% ............ 01/13/99 2,000 2,000
3.250% ............ 01/22/99 1,500 1,500
Series 1994
3.000% ............ 01/29/99 1,000 1,000
Bethel Park, School District
Unlimited GO
5.250% ............ 08/01/99 500 505
Boyertown, School District
Unlimited Bond, GO, Series 1998
3.750% ............ 03/01/99 480 480
Brockway Area School District
GO (FGIC)
3.850% ............ 05/15/99 125 125
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Brookville Area School District
GO (FSA)
3.850% ............ 05/15/99 $ 220 $ 220
Bucks County, St. Mary Hospital
Authority Catholic Health
Initiatives Revenue Bond,
Series A (B)
3.750% ............ 12/01/98 215 215
Series B (B)
3.050% ............ 12/01/24 1,500 1,500
Bucks County, Water and Sewer
Authority Revenue Bond (FGIC)
5.350% ............ 12/01/98 100 100
Cheltenham Township
School District GO
3.050% ............ 11/15/99 220 220
Cheltenham Township, TRAN
4.060% ............ 12/31/98 1,000 1,000
College Township Industrial
Development Authority
Revenue Bond, Ball
Corporation Project,
Series 1993 (A) (B)
3.150% ............ 11/01/11 3,200 3,200
Commonwealth of Pennsylvania Notes
3.250% ............ 01/14/99 2,000 2,000
Conewago Valley School
District GO
3.050% ............ 09/01/99 465 465
3.000% ............ 03/01/99 275 275
County of Armstrong GO
3.750% ............ 06/01/99 110 110
Cumberland County Municipal
Authority, Dickinson College
Revenue Bond, Series-A
2.950% ............ 11/01/99 1,000 1,000
Dauphin County, General Authority
Revenue Bond, Series G
5.000% ............ 12/01/98 100 100
Delaware County, Industrial Development
Authority Revenue Bond,
British Petroleum Oil
Project, Series 1985 (A)
3.300% ............ 12/01/09 1,100 1,100
General Electric Capital
Corporation Project,
Series 1997-G (B)
3.150% ............ 12/01/31 5,200 5,200
Philadelphia Electric
Company Project
2.950% ............ 01/26/99 2,000 2,000
See Accompanying Notes
119
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Scott Paper Project,
Series 1984 A (A) (B)
3.150% ............ 12/01/18 $ 5,000 $ 5,000
United Parcel Service Project,
Series 1985 (B)
3.150% ............ 12/01/15 4,600 4,600
Delaware River Port Authority
Port District Project Revenue
Bond, Series A (MBIA)
3.650% ............ 01/01/99 720 720
Delaware Valley Finance Authority
Local Government Revenue
Bond, Series 1985-C (B)
3.050% ............ 12/01/20 1,500 1,500
Donegal, School District GO (FSA)
3.800% ............ 04/01/99 250 250
5.000% ............ 05/01/99 1,000 1,007
East Norriton GO
3.100% ............ 08/15/99 285 285
Emmaus General Authority
Revenue Bond (A)
3.150% ............ 03/01/24 2,800 2,800
Erie Higher Educational Building
Authority Mercyhurst
College Project
7.850% ............ 09/15/19 1,000 1,035
Geisinger Authority, Penn State
Geisenger Health System
Series 1998B (A)
3.250% ............ 08/15/28 3,100 3,100
Lancaster Higher Education
Authority Revenue Bond,
Franklin & Marshall College
Project, Series 1997 (A) (B)
3.300% ............ 04/15/27 4,000 4,000
Lehigh County General Purpose
Revenue Bond, Lehigh
Valley Hospital, Series A
3.150% ............ 07/01/28 3,000 3,000
Mercersburg Boro General
Purpose Authority Revenue
Bond, Mercersburg College
Project, Series 1997 (A) (B)
3.200% ............ 11/01/27 1,000 1,000
Montgomery County, Higher
Education and Health Authority
Revenue Bond, Series 1988
AMBAC (A) (B)
3.150% ............ 09/01/18 100 100
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Montgomery County, Pollution
Control Revenue
PECO Energy, TECP
3.000% ............ 02/23/99 $ 2,100 $ 2,100
3.300% ............ 02/24/99 1,500 1,500
Series 1994-A
3.500% ............ 01/14/99 5,000 5,000
Northeastern York County
School District Unlimited Tax GO
3.450% ............ 04/15/99 285 285
Northestern Hospital Authority
Central Sucucass TECP
3.100% ............ 03/09/99 1,000 1,000
Northhampton County, Higher
Education Authority Lafayette
College, Series B (A)
3.300% ............ 11/01/28 1,000 1,000
PECO TECP
2.950% ............ 01/27/99 1,100 1,100
Penn Delco School District
Unlimited Tax GO
3.900% ............ 05/15/99 175 175
Philadelphia Authority Industrial
Development Revenue Chemical
Heritage Foudation Project (B)
3.150% ............ 07/01/27 1,000 1,000
Philadelphia Gas Works
Revenue Notes
3.350% ............ 01/29/99 1,000 1,000
Philadelphia Hospital & Higher
Educational Facility Authority
Revenue Bond,
Children's Hospital Project,
Series 1992 B (B)
3.250% ............ 03/01/27 4,800 4,800
Series 1996-A (A)
3.250% ............ 03/01/27 300 300
Philadelphia Industrial
Development Authority
Revenue Bond,
Cancer Research,
Series 1990-A (A)
3.250% ............ 07/01/13 2,600 2,600
The Fox Chase Cancer
Center Project,
Series 1997 (A) (B)
3.300% ............ 07/01/25 2,100 2,100
Pittsburgh, University of
Pittsburgh Higher Education
Revenue Bond, University
Capital Project, Series 1989A (A)
3.000% ............ 01/01/19 500 500
See Accompanying Notes
120
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
Pittsburgh Urban Redevelopment
Authority Revenue Bond
3.150% ............ 12/01/99 $ 1,170 $ 1,170
Pocono Montour School District GO
4.000% ............ 09/01/99 380 381
Quakertown General Authority
Revenue Bond, Series A (A) (B)
3.250% ............ 07/01/26 4,355 4,355
Quakertown Hospital Authority
Reveneue Bond, HPS Group
Pooled Financing (A)
3.250% ............ 07/01/05 1,000 1,000
Reynolds School District GO
3.600% ............ 10/01/99 105 105
Sayre Health Care Facility Authority
Revenue Bond, VHA Capital Asset
Finance Group, (AMBAC) (B)
3.200% ............ 12/01/20 7,000 7,000
Schuylkill County, Commonwealth
Lease Bonds, Series A (FGIC)
6.450% ............ 06/01/99 150 152
Scranton-Lackawanna Health and
Welfare Authority Revenue Bond,
University of Scranton Project, (A)
3.250% ............ 05/01/18 1,715 1,715
Seneca Valley School District GO,
Series 1998-A (FGIC) (B)
3.850% ............ 02/15/99 370 370
Shaler Area School District
Series B GO
3.700% ............ 09/01/99 720 721
South Butler County School
District GO
4.250% ............ 10/01/99 300 302
State, Educational System Revenue
Bond, Pennsylvania State
University Project, Series 1998-A
4.500% ............ 03/30/99 1,200 1,204
State, GO
5.300% ............ 07/01/99 500 506
5.650% ............ 07/01/99 500 508
3.600% ............ 09/01/99 200 200
State, Higher Education
Revenue Bond, Carnegie Mellon
Project, Series 1995-B (A) (B)
3.250% ............ 11/01/27 1,560 1,560
State, Higher Educational Facilities/
Association of Independent
Colleges and Universities,
Aloysius College
4.000% ............ 11/01/99 1,000 1,312
Messiah College
4.000% ............ 11/01/99 1,000 1,009
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
State, Higher Educational
Facilities Authority
Temple University Funding
Obligation Revenue Bond, Series B
4.500% ............ 05/14/99 $ 1,000 $ 1,003
University of Pennsylvania
Health Services Project,
Series C (A)
3.250% ............ 01/01/26 2,700 2,700
State, Industrial Development
Authority Economic Development
Revenue Bond (AMBAC)
6.000% ............ 01/01/99 1,000 1,002
State, Industrial Development
Authority USX Project
3.600% ............ 11/01/17 2,000 2,000
State, Infrastructure Investment
Authority Revenue Pool
5.000% ............ 09/01/99 1,000 1,012
State, Intergovernmental Coop
Authority Special Tax Revenue
Philadelphia Funding
Program (FGIC)
5.750% ............ 06/15/99 1,000 1,012
5.750% ............ 06/15/99 1,000 1,011
State, Turnpike Commission,
Series Q
3.300% ............ 06/01/28 2,300 2,300
Upper Merion Township, Transportation
Authority Highway Improvement
Revenue Bond
4.000% ............ 06/01/99 1,040 1,045
Upper Saint Clair Township GO
3.600% ............ 10/15/99 405 405
Washington County, Higher Education
Pooled Equipment Lease Revenue
Bond, Series 1985 (A) (B)
3.250% ............ 11/01/05 3,990 3,990
West Perry School District GO
3.000% ............ 10/01/99 185 185
York County General Authority
Pooled Financing Revenue Bond,
Series 1996 (A)
3.200% ............ 09/01/26 3,600 3,600
York County, Industrial Development
Authority Revenue Bond, Public
Service Electric and Gas Project,
Series 1995-A (MBIA) (B)
3.100% ............ 09/01/20 600 600
----------
TOTAL MUNICIPAL BONDS
(Cost $146,834) ............................. 146,834
----------
See Accompanying Notes
121
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Pennsylvania Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
(000) (000)
----- -----
CASH EQUIVALENTS -- 2.1%
Blackrock Pennsylvania Municpal
Money Market Fund ............ $ 2,100 $ 2,100
Federated Pennsylvania Cash
Trust Fund ................... 978 978
----------
TOTAL CASH EQUIVALENTS
(Cost $3,078) ................................ 3,078
----------
TOTAL INVESTMENTS -- 100.8%
(Cost $149,912) .............................. $ 149,912
==========
OTHER ASSETS AND LIABILITIES,
Net -- (0.8%) ................................ (1,131)
----------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 104,401,767 outstanding shares of
beneficial interest .......................... 104,401
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
44,369,602 outstanding shares of
beneficial interest .......................... 44,370
Undistributed net investment income ........... 23
Accumulated net realized loss on investments .. (13)
----------
TOTAL NET ASSETS -- 100.0% ...................... $ 148,781
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................. $ 1.00
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS A ............................. $ 1.00
==========
- -------------------
(A) Securities are backed by a letter of credit backed by a major financial
institution.
(B) Variable Rate Securities--The rate reflected on the Statement of Net
Assets is the rate in effect on November 30, 1998.
AMBAC -- American Municipal Bond Assurance Corporation
FGIC -- Federal Guaranty Insurance Corporation
FSA -- Financial Security Assurance
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
TECP -- Tax Exempt Commercial Paper
TRAN -- Tax and Revenue Anticipation Note
See Accompanying Notes
122
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Pennsylvania Tax Exempt Money Market Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the
Six Months Ended For Year Ended May 31,
November 30, 1998 -------------------------------------------------
(Unaudited) 1998 1997/5
----------------------- --------------------- -----------------------
Class I Class A Class I Class A Class I Class A/6
------- -------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------- ------- -------
Income From Investment Operations
Net investment income...................... 0.01 0.01 0.03 0.03 0.03 0.02
-------- ------- ------- ------- ------- -------
Less Distributions
Dividends from net investment income ...... (0.01) (0.01) (0.03) (0.03) (0.03) (0.02)
-------- ------- ------- ------- ------- -------
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= =======
Total Return ................................ 3.01%/3 2.85%/3 3.41% 3.29% 3.26% 3.18%
Ratios/Supplemental Data
Net assets, end of period (in 000's)....... $104,412 $44,369 $73,264 $33,375 $60,876 $20,830
Ratio of expenses to average net assets ... 0.35%/1,3 0.50%/2,3 0.34%/1 0.46%/2 0.41%/1 0.46%/2,3
Ratio of net investment income to
average net assets ...................... 2.89%/1,3 2.73%/2,3 3.35%/1 3.23%/2 3.20%/1 3.27%/2,3
<CAPTION>
For the For the For the
Period Ended Year Ended Period Ended
May 31, 1996/5 April 30, 1996/5 April 30, 1995/5
-------------- ---------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income From Investment Operations
Net investment income...................... 0.00 0.03 0.02
------- ------- -------
Less Distributions
Dividends from net investment income ...... (0.00) (0.03) (0.02)
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total Return ................................ 0.28%/4 3.36% 2.32%/4
Ratios/Supplemental Data
Net assets, end of period (in 000's)....... $68,742 $70,422 $56,668
Ratio of expenses to average net assets ... 0.55%/1,3 0.55%/1 0.55%/1,3
Ratio of net investment income to
average net assets ...................... 3.24%/1,3 3.29%/1 3.21%/1,3
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser and other affiliates for class I for the
periods ended November 30, 1998, May 31, 1998, May 31, 1997, May 31, 1996,
April 30, 1996, and April 30, 1995 would have been 0.60% and 2.64%, 0.58% and
3.11%, .74% and 2.87%, .97% and 2.82%, .96% and 2.88%, and 1.04% and 2.72%,
respectively.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Adviser and other affiliates for class A for the
periods ended November 30, 1998, May 31, 1998 and May 31, 1997 would have been
0.75% and 2.48%, 0.71% and 2.98% and .71% and 3.02%, respectively.
3 Annualized.
4 Not Annualized.
5 Activity for the period presented includes that of the Predecessor Fund
through September 6, 1996. The Predecessor Fund commenced operations on August
10, 1994. During 1996, the Predecessor Fund changed its fiscal year end from
April 30 to May 31.
6 Class A commenced operations on September 11, 1996.
See Accompanying Notes
123
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- 97.9%
Alabama -- 1.3%
Columbia Industrial Development
Board, Pollution Control
Revenue Refunding Bond,
Alabama Power Project A
3.650% .............10/01/22 $3,000 $ 3,000
Financing Authority Revenue
Hospital VHA Alabama Income
Capital, Series E (AMBAC)
3.200% .............12/01/30 1,000 1,000
Montgomery Alabama Special Care
Facilities, Hospital Authority
Revenue Bond VHA Alabama Inc.
1985, Series D (AMBAC)
3.200% .............12/01/30 2,000 2,000
Parrish Industrial Development
Board Pollution Control
Revenue Refunding Bonds,
Alabama Power, Project A
3.250% .............06/01/15 2,000 2,000
----------
8,000
----------
Alaska -- 1.5%
Valdez Marine Terminal,
Arco Transportation Project,
Series 1994-A
3.050% .............02/16/99 3,300 3,300
Series 1994-B
3.200% .............05/01/31 6,000 6,000
----------
9,300
----------
Arizona -- 4.2%
Arizona School District, TRAN
4.100% .............07/30/99 1,500 1,505
Maricopa County Pollution Control
Revenue/Southern California
Edison Project,
Series D
3.100% .............03/09/99 2,000 2,000
Series E
3.350% .............01/13/99 1,000 1,000
3.350% .............01/28/99 1,150 1,150
3.350% .............01/29/99 1,000 1,000
3.050% .............02/16/99 2,000 2,000
2.950% .............03/05/99 3,600 3,600
Series F
3.100% .............03/08/99 2,600 2,600
3.100% .............03/09/99 3,250 3,250
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Arizona -- Continued
Salt River Project, Agriculture
Improvement & Power,
District of Arizona TECP
3.150% .............02/11/99 $4,000 $ 4,000
3.150% .............02/19/99 3,000 3,000
3.100% .............03/08/99 1,370 1,370
----------
26,475
----------
Colorado -- 2.7%
Colorado Health Facilities Authority
Revenue Bond,
Catholic Health, Series B
3.150% .............12/01/25 8,000 8,000
North Colorado Medical Center
3.150% .............05/15/20 4,300 4,300
University of Colorado Regents
Enterprise System Adjustable
Tender Revenue Bond,
Series 1996-A
3.100% .............06/01/20 5,000 5,000
----------
17,300
----------
Connecticut -- 1.7%
State, Health & Higher Education
Facilities Revenue Bond,
Yale University, Series T-2
2.800% .............07/01/27 7,000 7,000
State, GO Series C
3.500% .............10/15/99 4,000 4,024
----------
11,024
----------
Delaware -- 1.3%
University of Delaware
Revenue Bond
3.150% .............11/01/23 8,300 8,300
----------
Florida -- 4.2%
Gainesville Utilities System,
Series C
3.100% .............12/14/98 5,198 5,198
3.500% .............12/09/98 1,424 1,424
3.350% .............01/08/99 1,500 1,500
2.950% .............03/10/99 3,888 3,888
Jacksonville Pollution Control
Revenue Bond, Power and
Light Company Project
3.500% .............12/15/98 2,450 2,450
3.150% .............02/12/99 5,810 5,810
3.100% .............03/08/99 1,700 1,700
See Accompanying Notes
124
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Florida -- Continued
Putnam County, Development
Authority Pollution Control
Revenue Bond, Florida
Seminole Electric
3.300% .............03/15/99 $5,000 $ 5,000
----------
26,970
----------
Georgia -- 2.7%
Burke County, Pollution Control
Revenue Bond, Georgia Power
Company Plant Vogtle Project
3.650% .............07/01/24 500 500
Georgia Municipal Gas Authority
Gas Revenue Bond
3.200% .............03/11/99 3,585 3,585
Series C
3.200% .............11/01/07 7,800 7,800
Monroe County Development Authority
Pollution Control Revenue Bond,
Georgia Power Company
3.650% .............07/01/25 3,600 3,600
Savannah Development Authority
Revneue Bond, Downtown
Parking Authority
3.100% .............09/01/05 2,000 2,000
----------
17,485
----------
Illinois -- 3.6%
City of Chicago GO
3.550% .............02/04/99 3,000 3,000
State, Educational Facilities
Authority Revenue Bond,
Northwestern University,
3.200% .............03/01/28 8,736 8,736
State, GO
4.500% .............02/01/99 1,000 1,001
State, Health Facilities Revenue Bond,
Delnor Community Hospital
8.000% .............05/15/99 2,585 2,695
Evanston Northwestern
3.700% .............06/01/99 2,000 2,000
Resurrection Healthcare System
3.350% .............05/01/11 3,000 3,000
Southern Illinois Healthcare
Facilities
3.150% .............03/01/21 2,850 2,850
----------
23,282
----------
Indiana -- 7.0%
Evansville Economic Development
Authority Revenue Bond,
Ball Corporation Project (B)
3.150% .............12/01/08 1,500 1,500
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Indiana -- Continued
Hammond Indiana Local Public
Improvements Revenue Bond,
Bank Advance Funding Program
Notes, Series 1998 A-2
4.300% .............01/07/99 $4,000 $ 4,002
Indiana Hospital Equipment Finance
Authority Revenue Bond,
3.200% .............12/01/15 3,400 3,400
Purdue University,
Revenue Bond,
Trustees Student Fee,
Series H
3.100% .............07/01/17 9,265 9,265
Series O
3.100% .............07/01/19 7,850 7,850
Sullivan, Hoosier Energy Rural
Electric Cooperative Inc.
3.350% .............01/08/99 1,500 1,500
3.050% .............02/16/99 4,295 4,295
2.950% .............03/05/99 4,145 4,145
3.100% .............03/09/99 4,000 4,000
2.950% .............03/10/99 4,500 4,500
----------
44,457
----------
Iowa -- 0.5%
Polk County, Health Facilities
Authority Revenue Bond,
Catholic Health Initiatives,
Series 1997B
3.150% .............12/01/15 1,000 1,000
State, School Cash Anticipation
Program, Series B
4.250% .............01/28/99 2,500 2,503
----------
3,503
----------
Kentucky -- 0.3%
Jefferson County, Pollution
Control Revenue Bond,
Louisville Gas & Electric
3.250% .............03/10/99 2,000 2,000
----------
Maine -- 0.4%
State, Health & Higher Education
Facilities Authority, Revenue Bond
VHA New England Series C,
3.300% .............12/01/25 2,600 2,600
----------
Maryland -- 0.9%
Montgomery County, TECP
3.000% .............03/10/99 3,000 3,000
State, GO
4.500% .............04/15/99 1,015 1,021
See Accompanying Notes
125
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Maryland -- Continued
Washington, Suburban Sanitation
Authority, BAN (A)
3.150% .............08/01/04 $2,000 $ 2,000
----------
6,021
----------
Massachusetts -- 1.0%
City of Cambridge, GO
4.500% .............02/01/99 2,700 2,704
Weston, BAN
3.500% .............01/15/99 3,400 3,401
----------
6,105
----------
Michigan -- 2.5%
Michigan Municipal Bond
Authority Revenue Bond
3.500% .............12/01/99 2,000 2,012
Michigan Municipal Bond Authority
Revenue Notes
1998-B2
4.500% .............07/02/99 2,000 2,010
1998-D1
3.580% .............08/27/99 2,000 2,009
Royal Oak Hospital Authority
Revenue Bond William Beaumont
Hospital, Series J
3.250% .............01/01/03 2,100 2,100
State, Housing Development
Authority Revenue Bond,
Pine Ridge
3.100% .............10/01/17 3,900 3,900
State, Strategic Revenue Bond,
Consumers Power Company,
Project J
3.350% .............06/01/10 1,100 1,100
Detroit Edison
3.350% .............09/01/30 3,100 3,100
----------
16,231
----------
Minnesota -- 8.5%
Becker, Pollution Control
Revenue Bond,
Northern States Power
3.450% .............12/02/98 5,000 5,000
3.500% .............12/15/98 2,000 2,000
3.100% .............03/09/99 4,000 4,000
3.250% .............01/08/99 2,200 2,200
3.200% .............01/12/99 1,000 1,000
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDs -- Continued
Minnesota -- Continued
Hennepin County, GO Series C
3.100% .............12/01/04 $7,000 $ 7,000
3.100% .............12/01/10 4,000 4,000
Minneapolis, GO Series 1997-B
3.350% .............12/01/02 6,000 6,000
3.100% .............12/01/07 6,000 6,000
Minneapolis University Gateway
Project, Series B
3.150% .............12/01/27 6,350 6,350
Olmsted County, Certificates of
Participation Human Services
Campus Infrastructure
Revneue Bond
3.150% .............08/01/05 3,755 3,755
Rochester Healthcare Facilities
Authority, Series E
3.550% .............02/11/99 4,100 4,100
State, GO
6.400% .............08/01/99 3,000 3,070
----------
54,475
----------
Mississippi -- 2.7%
Forest Industrial Development
Revenue Bond, Sara Lee Corp.
3.200% .............10/01/12 8,000 8,000
Jackson County Water System
GO Bond, Chevron Project
3.500% .............02/01/99 2,200 2,200
Jackson County Pollution Control
Revenue Bond, Chevron Project
3.250% .............06/01/23 6,800 6,800
----------
17,000
----------
Missouri -- 2.8%
Independence Water
Utility Revenue Bond
3.200% .............01/20/99 4,550 4,550
State, Health & Educational Facility
Revenue Bond, School
District Advance
Funding Note
4.250% .............09/13/99 2,000 2,009
Series D
3.250% .............09/01/30 8,400 8,400
Sisters of Mercy, Series C
3.100% .............06/01/19 2,100 2,100
Series D
3.100% .............06/01/19 1,000 1,000
----------
18,059
----------
See Accompanying Notes
126
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Nebraska -- 0.4%
Omaha Public Power Revenue Bond
4.650% .............02/01/99 $2,500 $ 2,506
----------
Nevada -- 1.2%
Clarke County, Flood Control
District, GO
4.500% .............11/01/99 4,640 4,692
Henderson, Water & Sewer, GO
5.000% .............09/01/99 2,860 2,896
----------
7,588
----------
New Hampshire -- 2.0%
State, Higher Education & Health
Facilities Revenue Bond,
VHA New England, Series E
3.300% .............12/01/25 1,000 1,000
State, GO
3.450% .............12/03/98 5,000 5,000
3.100% .............02/09/99 6,500 6,500
----------
12,500
----------
New Mexico -- 0.8%
Farmington Pollution Control
Revenue Refunding Bonds,
Arizona Public Service Company,
Series 1994-A
3.250% .............09/01/24 5,000 5,000
----------
New York -- 1.0%
New York City, GO, Series 1995-B
3.050% .............01/04/99 6,200 6,200
----------
North Carolina -- 2.0%
State, Educational Facilities
Revenue Bond,
Bowman Gray School
of Medicine Project
3.150% .............09/01/20 10,600 10,600
Guilford College (MBIA)
3.150% .............05/01/24 2,000 2,000
----------
12,600
----------
Ohio -- 14.4%
Columbus, GO
3.000% .............12/01/17 1,000 1,000
Cuyahoga County Hospital
Facilities Revenue Bond,
Cleveland Clinic Foundation,
Series 1996-A
3.150% .............01/01/26 5,800 5,800
Series 1996-B
3.150% .............01/01/26 5,800 5,800
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Series 1997-A (AMBAC)
3.150% .............01/01/16 $ 900 $ 900
Series 1997-D
3.300% .............01/01/26 10,300 10,300
Cuyahoga County Hospital Refunding
Revenue Bond Series B (AMBAC)
3.150% .............01/01/16 300 300
Dublin City School District, Building
Improvement Notes
3.990% .............04/14/99 2,000 2,003
Erie County, BAN
4.250% .............06/01/99 2,000 2,005
Franklin County Hospital
Revenue Bond, Holy Cross
Health System
3.100% .............06/01/16 8,700 8,700
Lake County, BAN
3.375% .............10/07/99 1,807 1,811
Lakewood, BAN, Series 1998-A
4.000% .............05/07/99 1,286 1,288
Lima Memorial Hospital,
Series 1996
3.250% .............12/01/10 310 310
Mason City School District,
BAN, Series A
4.020% .............02/18/99 750 751
Ohio School Districts 1998
Cashflow Borrowing Program
4.050% .............06/30/99 1,000 1,002
Ohio State University
General Receipts Revenue Bond
3.050% .............12/01/07 1,500 1,500
Series 1986-B
3.100% .............12/01/06 4,180 4,180
Series 1997
3.350% .............12/01/17 3,050 3,050
Ross County Hospital Facilities
Revenue Bond, Medical Center
Hospital Project
3.200% .............12/01/20 150 150
Ross County, Adena Health System,
Revenue Bond, Series 1998
3.200% .............12/01/23 1,800 1,800
See Accompanying Notes
127
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Scioto County, Hospital Facitlites
Revnue Bond, VHA Central
Capital Asset Finance Program,
Series D
3.200% .............12/01/25 $1,100 $ 1,100
Series E
3.200% .............12/01/25 590 590
Series G
3.200% .............12/01/25 800 800
Scioto County, VHA Central
Income Capital Asset,
Series 1985-C
3.200% .............12/01/25 815 815
State, Air Quality Development
Authority Revenue Bond,
Cincinnati Gas & Electric
3.750% .............12/01/15 400 400
Ohio Edison Project, Series A
3.650% .............02/01/15 3,000 3,000
USX Project
3.600% .............11/01/15 700 700
State, Building Authority
Revenue Bond, Correctional
Facility, Series A
7.150% .............03/01/99 1,500 1,513
7.250% .............03/01/99 1,500 1,543
State, Higher Education Facility
Authority Revenue Bond, Oberlin
College Project, Series 1985 (A)
3.100% .............10/01/15 4,550 4,550
State, Highway Capital Improvements GO
Series A
4.800% .............05/01/99 2,700 2,712
Series S
4.400% .............05/15/99 100 100
State, Pollution Control
Revenue Bond, Sohio Air Project
3.300% .............05/01/22 3,600 3,600
State, Public Facilities Commission
Revenue Bond, Series II-B
4.250% .............06/01/99 250 250
State, Water Authority Revenue Bond,
Cleveland Electric
and Illumination Project
3.150% .............08/01/20 2,000 2,000
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Ohio -- Continued
Summit County TRAN
4.250% .............06/03/99 $8,000 $ 8,029
Toledo City Services Special
Assessment Notes (B)
3.150% .............06/01/00 4,220 4,220
Warren County Revenue Bond
3.150% .............07/01/23 1,900 1,900
Water Improvemnt BAN
4.200% .............12/02/99 1,500 1,505
----------
91,977
----------
Pennsylvania -- 8.3%
Allegheny County Hospital
Development Authority
Revenue Bond
3.100% .............11/01/27 3,100 3,100
Beaver County TECP
3.350% .............01/13/99 2,500 2,500
Delaware Valley Finance Authority
Local Government
Revenue Bond, Series D
3.050% .............08/01/16 2,700 2,700
Emmaus General Authority
Revenue Bond
3.150% .............03/01/24 1,600 1,600
3.150% .............12/01/28 3,000 3,000
Series B-16
3.150% .............03/01/24 1,100 1,100
Series E-11
3.150% .............03/01/24 100 100
Series G-9
3.150% .............03/01/24 1,000 1,000
Montour County, Health System
Authority Geisinger Authority,
Series 1998 B
3.250% .............08/15/28 5,000 5,000
Northampton Higher Education
Authority, Lafayette College,
Series B
3.300% .............11/01/28 2,000 2,000
Philadelphia Hospital & Higher
Educational Facility Authority
Revenue Bond, Series 1992-B
3.250% .............03/01/27 3,000 3,000
Quakertown Hospital Authority
Revenue Bond
3.250% .............07/01/05 4,700 4,700
See Accompanying Notes
128
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Pennsylvania -- Continued
State, Higher Education Facility
Authority Revenue Bond
Carnegie Mellon
University Project
Series 1995-B
3.250% .............11/01/27 $ 640 $ 640
Series 1995-C
3.250% .............11/01/25 5,200 5,200
University of Health Services
Project, Series C
3.250% .............01/01/24 100 100
3.250% .............01/01/26 8,200 8,200
State, Turnpike Commission,
Series P
5.100% .............12/01/99 1,150 1,172
Series Q
3.300% .............06/01/28 2,800 2,800
Washington County Higher Education
Pooled Equipment Lease
Revenue Bond, Series 1985
3.250% .............11/01/05 3,730 3,730
York County Industrial Development
Authority Philadelphia Co.
Electric Project, Series A
3.300% .............08/01/16 1,000 1,000
----------
52,642
----------
South Carolina -- 0.3%
State, GO
5.500% .............04/01/99 2,000 2,018
----------
Tennessee -- 0.9%
State, School Bond Authority Notes
3.250% .............01/07/99 3,000 3,000
3.200% .............01/11/99 3,000 3,000
----------
6,000
----------
Texas -- 3.4%
Austin Texas Combined Utility
System Notes
3.050% .............03/11/99 3,562 3,562
Gulf Coast, Industrial Development
Authority Revenue Bond,
Amoco Oil Project
3.700% .............06/01/25 2,500 2,500
Red River Authority of Texas
Pollution Control Revenue Bond,
Southwestern Public Service
Company Project
3.350% .............07/01/11 10,000 10,000
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Texas -- Continued
San Antonio GO Notes
3.550% .............02/11/99 $4,000 $ 4,002
5.000% .............08/01/99 1,355 1,369
----------
21,433
----------
Utah -- 3.9%
Emery County Pollution Control
Revenue Bond, Pacificorp Project
3.100% .............07/01/15 2,700 2,700
Intermountain Power Agency Power
Supply, Revenue Bond
3.500% .............12/10/98 5,000 5,000
State, GO Highway Notes
3.450% .............12/09/98 3,000 3,000
3.350% .............01/12/99 1,000 1,000
3.050% .............01/21/99 2,000 2,000
3.100% .............02/09/99 2,000 2,000
3.150% .............02/11/99 4,000 4,000
Utah University Auxiliary and
Campus Facilities Revenue Bond,
Series 97-A
3.100% .............04/01/27 5,050 5,050
----------
24,750
----------
Vermont -- 0.2%
Vermont Educational & Health
Buildings Finance Agency/
VHA New England, Series F
3.300% .............12/01/25 1,300 1,300
----------
Virginia -- 2.3%
Lynchburg Industrial Devlopment
Authority, Hospital Facilities
Revenue Bond, Mid-Atlantic
States Capital Asset Finance
Project, Series 1985-G
3.300% .............12/01/25 2,000 2,000
Peninsula Ports Authority,
VA/Dominion Terminal Project
3.100% .............03/05/99 5,835 5,835
State, Public School Authority
Revenue Bond, Series C
5.000% .............08/01/99 3,105 3,148
Richmond, GO (Prerefunded)
6.500% .............01/16/99 1,000 1,013
Roanoke Industrial Development
Authority, Revenue Bond, Carilion
Health System, Series A
3.300% .............07/01/27 3,000 3,000
----------
14,996
----------
See Accompanying Notes
129
<PAGE>
[GRAPHIC OMITTED]
Statement of Net Assets
Armada Tax Exempt Money Market Fund
November 30, 1998
(Unaudited)
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- Continued
Washington -- 1.8%
Chelan County Washington,
Chelan Hydro, Series A,
3.050% .............06/01/15 $4,445 $ 4,445
Washington Health Care Facility
Authority Revenue Bond
3.300% .............01/01/23 6,545 6,545
Fred Hutchinson Cancer
Research Center,
Series 1996-B (A) (B)
3.300% .............01/01/18 700 700
----------
11,690
----------
West Virginia -- 0.2%
West Virginia Hospital Authority/
VHA Mid-Atlantic Capital
Access, Series H
3.300% .............12/01/25 1,200 1,200
----------
Wisconsin -- 3.1%
Carlton, Pollution Control,
Power and Light Company,
Project B, Revenue Bond
3.350% .............09/01/05 2,200 2,200
Kenosha, Unified School
District TRAN
3.380% .............09/28/99 2,000 2,000
Oak Creek, Pollution Control
Revenue Bond, Wisconsin
Electric Power Company Project
3.150% .............08/01/16 3,300 3,300
Wisconsin State, GO
3.450% .............12/15/98 3,860 3,860
3.100% .............02/10/99 2,361 2,361
3.100% .............02/12/99 4,141 4,141
3.000% .............02/16/99 2,279 2,279
----------
20,141
----------
Wyoming -- 1.9%
Lincoln County, Pollution Control
Revenue Bond/Pacificorp Project (A)
3.000% .............02/23/99 2,000 2,000
2.900% .............02/24/99 4,200 4,200
Sweetwater County,
Pollution Control Revenue
Bond, Pacificorp Project (A)
3.450% .............12/18/98 1,400 1,400
3.300% .............12/01/14 2,200 2,200
Uinta County, Pollution Control
Revenue Bond, Chevron Project
3.250% .............08/15/20 2,100 2,100
----------
11,900
----------
TOTAL MUNICIPAL BONDS
(Cost $625,028) ............................. 625,028
----------
Par Value
(000) (000)
----- -----
CASH EQUIVALENTS -- 1.6%
Federated Tax-Free Money
Market Fund $5,911 $ 5,911
Financial Square Tax Exempt
Money Market Fund 4,076 4,076
----------
TOTAL CASH EQUIVALENTS
(Cost $9,987) ............................... 9,987
----------
TOTAL INVESTMENTS -- 99.5%
(Cost $635,015) ............................. $ 635,015
==========
OTHER ASSETS AND LIABILITIES,
Net -- 0.5% ................................. 2,876
----------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
398,863,632 outstanding shares of
beneficial interest ........................ 399,210
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
238,488,460 outstanding shares of
beneficial interest ........................ 238,695
Accumulated net realized loss
on investments .............................. (14)
----------
TOTAL NET ASSETS -- 100.0% ..................... $637,891
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS I ............................ $1.00
==========
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER
SHARE -- CLASS A ............................ $1.00
==========
- ---------
(A) Securities are backed by a letter of credit backed by a major financial
institution.
(B) Variable Rate Securities -- the rate reflected on the Statement of Net
Assets is the rate in effect on November 30, 1998.
AMBAC -- American Municipal Bond Assurance Corporation
BAN -- Bond Anticipation Note
GO -- General Obligation
MBIA -- Municipal Bond Insurance Association
TECP -- Tax Exempt Commercial Paper
TRAN -- Tax and Revenue Anticipation Note
VHA -- Veterans Housing Administration
See Accompanying Notes
130
<PAGE>
[GRAPHIC OMITTED]
Financial Highlights
Armada Tax Exempt Money Market Fund
For a Fund Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the
Six Months Ended For the Year Ended May 31,
November 30, 1998 --------------------------------------------------
(Unaudited) 1998 1997
----------------------- ---------------------- ---------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -------- -------
Income From Investment
Operations
Net investment income ..... 0.02 0.02 0.03 0.03 0.03 0.03
Less Distributions
Dividends from net
investment income ........ (0.02) (0.02) (0.03) (0.03) (0.03) (0.03)
-------- -------- -------- -------- -------- -------
Net asset value, end of
period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== =======
Total Return ................ 3.21%/3 3.06%/3 3.40% 3.27% 3.23% 3.12%
Ratios/Supplemental Data
Net assets, end of period
(in 000's) ............... $399,108 $238,783 $418,953 $132,548 $370,679 $71,917
Ratio of expenses to
average net assets ....... 0.29%/1,3 0.44%/2,3 0.30%/1 0.42%/2 0.29%/1 0.39%/2
Ratio of net investment
income to average
net assets ............... 2.95%/1,3 2.85%/2,3 3.32%/1 3.20%/2 3.18%/1 3.08%/2
<CAPTION>
For the Year Ended May 31,
-------------------------------------------------------------------------------
1996 1995 1994
---------------------- ----------------------- ----------------------
Class I Class A Class I Class A Class I Class A
------- ------- ------- ------- ------- -------
Net asset value, beginning
of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- -------- ------- -------- -------
Income From Investment
Operations
Net investment income ..... 0.03 0.03 0.03 0.03 0.02 0.02
Less Distributions
Dividends from net
investment income ........ (0.03) (0.03) (0.03) (0.03) (0.02) (0.02)
-------- ------- -------- ------- -------- -------
Net asset value, end of
period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======= ======== =======
Total Return ................ 3.40% 3.29% 3.14% 3.04% 2.06% 1.96%
Ratios/Supplemental Data
Net assets, end of period
(in 000's) ............... $261,808 $85,928 $172,643 $51,916 $139,015 $17,819
Ratio of expenses to
average net assets ....... 0.30%/1 0.40%/2 0.35%/1 0.46%/2 0.33%/1 0.43%/2
Ratio of net investment
income to average
net assets ............... 3.33%/1 3.23%/2 3.15%/1 3.17%/2 2.05%/1 1.94%/2
</TABLE>
1 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class I for the periods ended November
30, 1998, May 31, 1998 and May 31, 1997 would have been 0.49% and 2.75%, 0.50%
and 3.12% and .49% and 2.98%, respectively. The operating expense ratio and
net investment income ratio before fee waivers by the Investment Advisers and
Custodian for the Class I for the years ended May 31, 1996 and 1995 would have
been .51% and 3.12% and .56% and 2.94%, respectively. The operating expense
ratio and the net investment income ratio before fee waivers by the Investment
Advisers for Class I for the year ended May 31, 1994 would have been .53% and
1.85%.
2 The operating expense ratio and the net investment income ratio before fee
waivers by the Investment Advisers for Class A for the periods ended November
30, 1998, May 31, 1998 and May 31, 1997 would have been 0.64% and 2.65%, 0.62%
and 3.00% and .59% and 2.88%, respectively. The operating expense ratio and
net investment income ratio before fee waivers by the Investment Advisers and
Custodian for Class A for the years ended May 31, 1996 and 1995 would have
been .61% and 3.02% and .67% and 2.96%, respectively. The operating expense
ratio and net investment income ratio before fee waivers by the Investment
Advisers for Class A for the year ended May 31, 1994 would have been .63% and
1.74%.
3 Annualized.
See Accompanying Notes
131
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Operations (000)
For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
International Small Cap Small Cap Equity Tax Managed
Equity Fund Growth Fund Value Fund Growth Fund Equity Fund
------------ ------------ ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ...................................... $ 1,041 $ 80 $ 2,209 $ 3,030 $ 1,024
Interest ....................................... 179 208 160 797 90
Less: foreign taxes withheld ................... (97) -- -- -- --
------- ------- -------- -------- -------
Total investment income ........................ 1,123 288 2,369 3,827 1,114
------- ------- -------- -------- -------
EXPENSES:
Investment Advisory fees ....................... 632 232 1,062 3,500 456
Less: Fees waived by Investment Adviser ........ -- -- -- -- (115)
Administration fees ............................ 50 19 90 327 69
12b-1 fees ..................................... 37 11 56 90 50
Transfer Agent fees ............................ 28 7 44 79 67
Custodian fees ................................. 155 6 26 93 18
Professional fees .............................. 36 20 11 45 24
Printing and shareholder reports ............... 2 1 6 21 15
Registration and filing fees ................... 23 33 2 2 81
Trustees' fees ................................. 3 1 4 6 1
Miscellaneous .................................. 6 6 16 86 40
Amortization of deferred organizational costs .. -- -- 2 -- --
Shareholder servicing fees --
Class A and B Shares ........................ -- 1 12 102 --
------- ------- -------- -------- -------
Total expenses .............................. 972 337 1,331 4,351 706
------- ------- -------- -------- -------
NET INVESTMENT INCOME/(LOSS) ...................... 151 (49) 1,038 (524) 408
------- ------- -------- -------- -------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain/(loss) on investments sold ... (6,415) (4,558) (12,710) (13,548) 168
Net realized loss from foreign
currency transactions ....................... (39) -- -- -- --
Net realized gain/(loss) from futures .......... -- (154) -- -- --
Net change in unrealized appreciation/
(depreciation) on futures ................... -- 442 -- -- --
Net change in unrealized on
foreign currency and translation of other
assets and liabilities in foreign currencies 17 -- -- -- --
Net change in unrealized appreciation/
(depreciation) on investments ............... 3,372 (890) (21,729) 157,168 38,201
------- ------- -------- -------- -------
Net gain/(loss) on investments ................. (3,065) (5,160) (34,439) 143,620 38,369
------- ------- -------- -------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $(2,914) $(5,209) $(33,401) $143,096 $38,777
======= ======= ======== ======== =======
</TABLE>
1 Fund commenced operations on July 10, 1998.
See Accompanying Notes
132
<PAGE>
<TABLE>
<CAPTION>
Balanced Total Return
Core Equity Equity Allocation Advantage
Equity Fund Index Fund/1 Income Fund Fund/1 Fund
----------- ------------ ----------- ---------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ...................................... $ 705 $ 638 $ 4,296 $ 105 $ --
Interest ....................................... (187) 73 471 547 9,507
Less: foreign taxes withheld ................... -- -- -- -- --
------- ------ ------- ------- -------
Total investment income ........................ 518 711 4,767 652 9,507
------- ------ ------- ------- -------
EXPENSES:
Investment Advisory fees ....................... 426 156 1,241 153 849
Less: Fees waived by Investment Adviser ........ -- (156) -- (22) (308)
Administration fees ............................ 40 29 116 24 108
12b-1 fees ..................................... 24 13 4 8 1
Transfer Agent fees ............................ 10 10 62 31 25
Custodian fees ................................. 11 9 33 14 31
Professional fees .............................. 17 10 31 30 24
Printing and shareholder reports ............... 1 -- 1 1 14
Registration and filing fees ................... 12 18 11 75 2
Trustees' fees ................................. 1 1 4 6 4
Miscellaneous .................................. 1 21 51 33 21
Amortization of deferred organizational costs .. -- -- 2 -- 2
Shareholder servicing fees --
Class A and B Shares ........................ 1 -- 4 -- 3
------- ------ ------- ------- -------
Total expenses .............................. 544 111 1,560 353 776
------- ------ ------- ------- -------
NET INVESTMENT INCOME/(LOSS) ...................... (26) 600 3,207 299 8,731
------- ------ ------- ------- -------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain/(loss) on investments sold ... (133) (471) 7,265 (1,032) 3,033
Net realized loss from foreign
currency transactions ....................... -- -- -- -- --
Net realized gain/(loss) from futures .......... -- 268 -- -- --
Net change in unrealized appreciation/
(depreciation) on futures ................... -- 321 -- -- --
Net change in unrealized on
foreign currency and translation of other
assets and liabilities in foreign currencies -- -- -- -- --
Net change in unrealized appreciation/
(depreciation) on investments ............... 13,640 2,158 57,719 1,404 5,204
------- ------ ------- ------- -------
Net gain/(loss) on investments ................. 13,507 2,276 64,984 372 8,237
------- ------ ------- ------- -------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $13,481 $2,876 $68,191 $ 671 $16,968
======= ====== ======= ======= =======
<CAPTION>
Intermediate Enhanced
Bond Fund Bond Fund GNMA Fund Income Fund
--------- --------- --------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends ...................................... $ -- $ -- $ -- $ --
Interest ....................................... 16,266 6,286 2,876 2,193
Less: foreign taxes withheld ................... -- -- -- --
------- ------- ------ ------
Total investment income ........................ 16,266 6,286 2,876 2,193
------- ------- ------ ------
EXPENSES:
Investment Advisory fees ....................... 1,444 583 235 167
Less: Fees waived by Investment Adviser ........ -- (159) -- (93)
Administration fees ............................ 184 74 30 26
12b-1 fees ..................................... 107 45 14 --
Transfer Agent fees ............................ 27 24 34 23
Custodian fees ................................. 52 21 8 8
Professional fees .............................. 8 5 9 6
Printing and shareholder reports ............... 3 3 2 2
Registration and filing fees ................... 2 19 2 2
Trustees' fees ................................. 2 2 -- 2
Miscellaneous .................................. 2 7 2 7
Amortization of deferred organizational costs .. 2 -- 2 2
Shareholder servicing fees --
Class A and B Shares ........................ 1 4 1 --
------- ------- ------ ------
Total expenses .............................. 1,834 628 339 152
------- ------- ------ ------
NET INVESTMENT INCOME/(LOSS) ...................... 14,432 5,658 2,537 2,041
------- ------- ------ ------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain/(loss) on investments sold ... 11,072 3,271 238 416
Net realized loss from foreign
currency transactions ....................... -- -- -- --
Net realized gain/(loss) from futures .......... -- -- -- --
Net change in unrealized appreciation/
(depreciation) on futures ................... -- -- -- --
Net change in unrealized on
foreign currency and translation of other
assets and liabilities in foreign currencies -- -- -- --
Net change in unrealized appreciation/
(depreciation) on investments ............... 9,776 1,943 (26) 159
------- ------- ------ ------
Net gain/(loss) on investments ................. 20,848 5,214 212 575
------- ------- ------ ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ...................... $35,280 $10,872 $2,749 $2,616
======= ======= ====== ======
</TABLE>
1 Fund commenced operations on July 10, 1998.
See Accompanying Notes
133
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Operations (000)
For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
National Government
Ohio Tax Pennsylvania Tax Exempt Money Market Money Market
Exempt Fund Municipal Fund Fund Fund Fund
----------- -------------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest ............................................. $4,952 $1,102 $2,452 $78,708 $37,253
------ ------ ------ ------- --------
EXPENSES:
Investment Advisory fees ............................. 537 107 237 5,000 2,384
Less: Fees waived by Investment Adviser .............. (537) (68) (237) (1,428) (681)
Administration fees .................................. 68 14 30 1,017 477
12b-1 fees ........................................... 41 -- 23 460 290
Transfer Agent fees .................................. 15 14 30 26 40
Custodian fees ....................................... 30 4 9 286 75
Professional fees .................................... 10 8 8 281 116
Printing and shareholder reports ..................... 15 5 -- 152 81
Registration and filing fees ......................... 38 2 34 10 5
Trustees' fees ....................................... 5 -- -- 63 10
Miscellaneous ........................................ 20 2 8 9 79
Amortization of deferred organizational costs ........ -- -- 2 -- --
Shareholder servicing fees -- Class A and B Shares ... 2 -- -- 676 242
------ ------ ------ ------- -------
Total expenses .................................... 244 88 144 6,552 3,118
------ ------ ------ ------- -------
NET INVESTMENT INCOME ................................... 4,708 1,014 2,308 72,156 34,135
------ ------ ------ ------- -------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS
Net realized gain/(loss) on investments sold ......... 35 43 261 (2) 1
Net change in unrealized appreciation
on investments .................................... 1,926 318 974 -- --
------ ------ ------ ------- -------
Net gain/(loss) on investments ....................... 1,961 361 1,235 (2) 1
------ ------ ------ ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ............................ $6,669 $1,375 $3,543 $72,154 $34,136
====== ====== ====== ======= =======
</TABLE>
1 Fund commenced operations on September 15, 1998.
See Accompanying Notes
134
<PAGE>
<TABLE>
<CAPTION>
Ohio Pennsylvania
Treasury Municipal Tax Exempt Tax Exempt
Money Money Money Money
Market Fund Market Fund/1 Market Fund Market Fund
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest .................................................... $9,434 $557 $2,110 $9,527
------ ---- ------ ------
EXPENSES:
Investment Advisory fees .................................... 573 59 261 1,030
Less: Fees waived by Investment Adviser ..................... (95) (41) (163) (589)
Administration fees ......................................... 134 17 45 206
12b-1 fees .................................................. 44 7 27 95
Transfer Agent fees ......................................... 3 1 16 4
Custodian fees .............................................. 38 3 13 58
Professional fees ........................................... 10 7 11 14
Printing and shareholder reports ............................ 7 -- 1 6
Registration and filing fees ................................ 2 -- 13 3
Trustees' fees .............................................. 2 1 2 3
Miscellaneous ............................................... 36 2 1 20
Amortization of deferred organizational costs ............... 7 -- -- --
Shareholder servicing fees -- Class A and B Shares .......... 18 -- 28 134
------ ---- ------ ------
Total expenses ........................................... 779 56 255 984
------ ---- ------ ------
NET INVESTMENT INCOME .......................................... 8,655 501 1,855 8,543
------ ---- ------ ------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS
Net realized gain/(loss) on investments sold ................ 75 -- -- (36)
Net change in unrealized appreciation
on investments ........................................... -- -- -- --
------ ---- ------ ------
Net gain/(loss) on investments .............................. 75 -- -- (36)
------ ---- ------ ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ................................... $8,730 $501 $1,855 $8,507
====== ==== ====== ======
</TABLE>
1 Fund commenced operations on September 15, 1998.
See Accompanying Notes
135
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
International Equity Fund Small Cap Growth Fund
--------------------------------- ------------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Period Ended November 30, 1998 Period Ended
(Unaudited) May 31, 1998/1 (Unaudited) May 31, 1998/1
----------------- -------------- ----------------- --------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income/(loss) ............................ $ 151 $ 982 $ (49) $ 40
Net realized gain/(loss) on investments sold and
foreign currency transactions ........................ (6,454) (3,995) (4,558) 833
Net realized gain/(loss) from futures ................... -- -- (154) --
Net change in unrealized appreciation/
(depreciation) on futures ........................... -- -- 442 --
Net unrealized appreciation/(depreciation) of investment
securities and foreign currency transactions ......... 3,389 13,359 (890) 4,165
-------- -------- ------- -------
Net increase/(decrease) in net assets resulting
from operations ......................................... (2,914) 10,346 (5,209) 5,038
-------- -------- ------- -------
Distribution to shareholders:
Net investment income:
Class I ............................................ -- (133) (2) (44)
Class A ............................................ -- -- -- --
Class B ............................................ -- -- -- --
Realized Capital Gains
Class I ............................................ -- -- -- (93)
Class A ............................................ -- -- -- --
Class B ............................................ -- -- -- --
-------- -------- ------- -------
Total Distributions ..................................... -- (133) (2) (137)
-------- -------- ------- -------
Share transactions:
Class I
Proceeds from shares issued ........................ 29,360 127,644 21,053 51,438
Proceeds from Common Fund (note 6) ................. -- -- -- --
Reinvestment of cash distributions ................. -- 3 -- 79
Cost of shares redeemed ............................ (3,296) (1,906) (7,744) (1,949)
-------- -------- ------- -------
Net Class I share transactions ................... 26,064 125,741 13,309 49,568
-------- -------- ------- -------
Class A
Proceeds from shares issued ........................ 373 308 265 364
Reinvestment of cash distributions ................. -- -- -- --
Cost of shares redeemed ............................ (34) (44) (52) (26)
-------- -------- ------- -------
Net Class A share transactions ................... 339 264 213 338
-------- -------- ------- -------
Class B
Proceeds from shares issued ........................ 22 2 669 22
Reinvestment of cash distributions ................. -- -- -- --
Cost of shares redeemed ............................ (1) (1) (660) (21)
-------- -------- ------- -------
Net Class B share transactions ................... 21 1 9 1
-------- -------- ------- -------
Increase in net assets from share transactions .......... 26,424 126,006 13,531 49,907
-------- -------- ------- -------
Contribution of capital from
affiliate (note 3) .............................. -- -- -- --
-------- -------- ------- -------
Total increase/(decrease) in net assets ................. 23,510 136,219 8,320 54,808
-------- -------- ------- -------
NET ASSETS:
Beginning of period ..................................... 136,219 -- 54,808 --
-------- -------- ------- -------
End of period ........................................... $159,729 $136,219 $63,128 $54,808
======== ======== ======= =======
</TABLE>
1 Fund commenced operations on August 1, 1997.
2 Fund commenced operations on April 9, 1998.
See Accompanying Notes
136
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
<TABLE>
<CAPTION>
Small Cap Value Fund Equity Growth Fund
--------------------------------- ---------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
----------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income/(loss) ............................... $ 1,038 $ 1,073 $ (524) $ (112)
Net realized gain/(loss) on investments sold and
foreign currency transactions ........................... (12,539) 49,850 71,356
Net realized gain/(loss) from futures ...................... -- 84 (13,548) 269
Net change in unrealized appreciation/
(depreciation) on futures ............................... -- (75) -- --
Net unrealized appreciation/(depreciation) of investment
securities and foreign currency transactions ............ (21,899) (9,288) 157,168 4,112
-------- -------- ---------- --------
Net increase/(decrease) in net assets resulting
from operations ............................................ (33,400) 41,644 143,096 75,625
-------- -------- ---------- --------
Distribution to shareholders:
Net investment income:
Class I ............................................... (868) (1,145) -- (77)
Class A ............................................... (28) (19) -- --
Class B ............................................... -- -- -- --
Realized Capital Gains
Class I ............................................... -- (34,475) -- (32,643)
Class A ............................................... -- (1,000) -- (875)
Class B ............................................... -- -- -- --
-------- -------- ---------- --------
Total Distributions ........................................ (896) (36,639) -- (33,595)
-------- -------- ---------- --------
Share transactions:
Class I
Proceeds from shares issued ........................... 29,146 108,947 827,450 112,234
Proceeds from Common Fund (note 6) .................... -- -- -- --
Reinvestment of cash distributions .................... 352 15,365 -- 15,580
Cost of shares redeemed ............................... (31,528) (44,464) (107,062) (72,440)
-------- -------- ---------- --------
Net Class I share transactions ...................... (2,030) 79,848 720,388 55,374
-------- -------- ---------- --------
Class A
Proceeds from shares issued ........................... 8,438 6,063 92,158 4,854
Reinvestment of cash distributions .................... 4 915 -- 816
Cost of shares redeemed ............................... (6,530) (1,135) (16,080) (1,269)
-------- -------- ---------- --------
Net Class A share transactions ...................... 1,912 5,843 76,078 4,401
-------- -------- ---------- --------
Class B
Proceeds from shares issued ........................... 207 544 252 308
Reinvestment of cash distributions .................... -- -- -- --
Cost of shares redeemed ............................... (1) (490) (13) (287)
-------- -------- ---------- --------
Net Class B share transactions ...................... 206 54 239 21
-------- -------- ---------- --------
Increase in net assets from share transactions ............. 88 85,745 796,705 59,796
-------- -------- ---------- --------
Contribution of capital from
affiliate (note 3) ................................. -- -- -- 466
-------- -------- ---------- --------
Total increase/(decrease) in net assets .................... (34,208) 90,750 939,801 102,292
-------- -------- ---------- --------
NET ASSETS:
Beginning of period ........................................ 294,990 204,240 364,817 262,525
-------- -------- ---------- --------
End of period .............................................. $260,782 $294,990 $1,304,618 $364,817
======== ======== ========== ========
<CAPTION>
Tax Managed Equity Fund Core Equity Fund
---------------------------------- --------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Period Ended November 30, 1998 Period Ended
(Unaudited) May 31, 1998/2 (Unaudited) May 31, 1998
----------------- -------------- ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income/(loss) ............................ $ 408 $ 214 $ (26) $ 531
Net realized gain/(loss) on investments sold and
foreign currency transactions ........................ -- 55 -- 4,906
Net realized gain/(loss) from futures ................... 168 -- (133) --
Net change in unrealized appreciation/
(depreciation) on futures ........................... -- -- -- --
Net unrealized appreciation/(depreciation) of investment
securities and foreign currency transactions ......... 38,201 (1,407) 13,640 8,557
-------- -------- -------- --------
Net increase/(decrease) in net assets resulting ......... 38,777 (1,138) 13,481 13,994
from operations ......................................... -- -- -- --
Distribution to shareholders:
Net investment income:
Class I ............................................ (600) -- (47) (505)
Class A ............................................ (1) -- -- --
Class B ............................................ -- -- -- --
Realized Capital Gains
Class I ............................................ -- -- -- --
Class A ............................................ -- -- -- --
Class B ............................................ -- -- -- --
-------- -------- -------- --------
Total Distributions ..................................... (601) -- (47) (505)
-------- -------- -------- --------
Share transactions:
Class I
Proceeds from shares issued ........................ 40,140 1,477 1,966 106,584
Proceeds from Common Fund (note 6) ................. -- 163,615 -- --
Reinvestment of cash distributions ................. 1 -- 46 503
Cost of shares redeemed ............................ (9,878) (5,090) (287) (10,061)
-------- -------- -------- --------
Net Class I share transactions ................... 30,263 160,002 1,725 97,026
-------- -------- -------- --------
Class A
Proceeds from shares issued ........................ 1,615 10 351 399
Reinvestment of cash distributions ................. 1 -- -- --
Cost of shares redeemed ............................ (75) -- (235) (2)
-------- -------- -------- --------
Net Class A share transactions ................... 1,541 10 116 397
-------- -------- -------- --------
Class B
Proceeds from shares issued ........................ 773 88 286 2
Reinvestment of cash distributions ................. 1 -- --
Cost of shares redeemed ............................ (12) -- (1) --
-------- -------- -------- --------
Net Class B share transactions ................... 762 88 285 2
-------- -------- -------- --------
Increase in net assets from share transactions .......... 32,566 160,100 2,126 97,425
-------- -------- -------- --------
Contribution of capital from
affiliate (note 3) .............................. -- -- -- --
-------- -------- -------- --------
Total increase/(decrease) in net assets ................. 70,742 158,962 15,560 110,914
-------- -------- -------- --------
NET ASSETS:
Beginning of period ..................................... 158,962 -- 110,914 --
-------- -------- -------- --------
End of period ........................................... $229,704 $158,962 $126,474 $110,914
======== ======== ======== ========
</TABLE>
1 Fund commenced operations on August 1, 1997.
2 Fund commenced operations on April 9, 1998.
See Accompanying Notes
137
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
Equity Index Fund Equity Income Fund
----------------- -------------------------------------
For the For the
Period Ended Six Months Ended For the
November 30, 1998 November 30, 1998 Year Ended
(Unaudited)/1 (Unaudited) May 31, 1998
------------- ----------- ------------
<S> <C> <C> <C>
Investment activities:
Net investment income ...................................... $ 600 $ 3,207 $ 3,301
Net realized gain/(loss) on investments sold ............... (471) 7,265 6,437
Net investment gain on futures sold ........................ 268 -- --
Net unrealized appreciation of
investment securities ................................... 2,479 57,719 25,959
--------- --------- ---------
Net increase in net assets resulting
from operations ......................................... 2,876 68,191 35,697
--------- --------- ---------
Distribution to shareholders:
Net investment income:
Class I ............................................... (284) (2,280) (3,144)
Class A ............................................... -- (12) (14)
Class B ............................................... -- (1) --
Realized Capital Gains
Class I ............................................... -- -- (7,211)
Class A ............................................... -- -- (34)
--------- --------- ---------
Total Distributions ........................................ (284) (2,293) (10,403)
--------- --------- ---------
Share transactions:
Class I
Proceeds from shares issued ........................... 152,333 206,093 70,486
Reinvestment of cash distributions .................... 281 708 5,680
Cost of shares redeemed ............................... (9,441) (21,556) (34,560)
--------- --------- ---------
Net Class I share transactions ...................... 143,173 185,245 41,606
--------- --------- ---------
Class A
Proceeds from shares issued ........................... 487 2,771 1,955
Reinvestment of cash distributions .................... -- 11 34
Cost of shares redeemed ............................... -- (872) (353)
--------- --------- ---------
Net Class A share transactions ...................... 487 1,910 1,636
--------- --------- ---------
Class B
Proceeds from shares issued ........................... -- 541 45
Reinvestment of cash distributions .................... -- 1 --
Cost of shares redeemed ............................... -- (18) (44)
--------- --------- ---------
Net Class B share transactions ...................... -- 524 1
--------- --------- ---------
Increase in net assets from share transactions ............. 143,660 187,679 43,243
--------- --------- ---------
Total increase in net assets ............................... 146,252 253,577 68,537
--------- --------- ---------
NET ASSETS:
Beginning of period ........................................ -- 196,077 127,540
--------- --------- ---------
End of period .............................................. $ 146,252 $ 449,654 $ 196,077
========= ========= =========
</TABLE>
1 Fund commenced operations on July 10, 1998.
See Accompanying Notes
138
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
Balanced Allocation Fund Total Return Advantage Fund
------------------------ -----------------------------------------
For the For the
Period Ended Six Months Ended For the
November 30, 1998 November 30, 1998 Year Ended
(Unaudited)/1 (Unaudited) May 31, 1998
------------- ----------------- ------------
<S> <C> <C> <C>
Investment activities:
Net investment income ...................................... $ 299 $ 8,731 $ 17,772
Net realized gain/(loss) on investments sold ............... (1,032) 3,033 2,672
Net investment gain on futures sold ........................ -- -- --
Net unrealized appreciation of
investment securities ................................... 1,404 5,204 7,028
------- -------- --------
Net increase in net assets resulting
from operations ......................................... 671 16,968 27,472
------- -------- --------
Distribution to shareholders:
Net investment income:
Class I ............................................... (114) (8,669) (17,637)
Class A ............................................... -- (72) (125)
Class B ............................................... -- -- --
Realized Capital Gains
Class I ............................................... -- -- --
Class A ............................................... -- -- --
------- -------- --------
Total Distributions ........................................ (114) (8,741) (17,762)
------- -------- --------
Share transactions:
Class I
Proceeds from shares issued ........................... 59,867 34,529 83,718
Reinvestment of cash distributions .................... 114 5,566 9,472
Cost of shares redeemed ............................... (6,139) (28,774) (65,987)
------- -------- --------
Net Class I share transactions ...................... 53,842 11,321 27,203
------- -------- --------
Class A
Proceeds from shares issued ........................... 281 3,446 651
Reinvestment of cash distributions .................... -- 69 111
Cost of shares redeemed ............................... -- (320) (2,374)
------- -------- --------
Net Class A share transactions ...................... 281 3,195 (1,612)
------- -------- --------
Class B
Proceeds from shares issued ........................... 94 -- --
Reinvestment of cash distributions .................... -- -- --
Cost of shares redeemed ............................... -- -- --
------- -------- --------
Net Class B share transactions ...................... 94 -- --
------- -------- --------
Increase in net assets from share transactions ............. 54,217 14,516 25,591
------- -------- --------
Total increase in net assets ............................... 54,774 22,743 35,301
------- -------- --------
NET ASSETS:
Beginning of period ........................................ -- 296,715 261,414
------- -------- --------
End of period .............................................. $54,774 $319,458 $296,715
======= ======== ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Bond Fund Intermediate Bond Fund
-------------------------------- ---------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
-------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income ...................................... $ 14,432 $ 5,994 $ 5,658 $ 8,477
Net realized gain/(loss) on investments sold ............... 11,072 901 3,271 1,330
Net investment gain on futures sold ........................ -- -- -- --
Net unrealized appreciation of
investment securities ................................... 9,776 1,479 1,943 1,379
-------- -------- -------- --------
Net increase in net assets resulting
from operations ......................................... 35,280 8,374 10,872 11,186
-------- -------- -------- --------
Distribution to shareholders:
Net investment income:
Class I ............................................... (14,434) (6,010) (5,425) (8,255)
Class A ............................................... (13) (3) (80) (198)
Class B ............................................... (3) -- (1) --
Realized Capital Gains
Class I ............................................... -- -- -- --
Class A ............................................... -- -- -- --
-------- -------- -------- --------
Total Distributions ........................................ (14,450) (6,013) (5,506) (8,453)
-------- -------- -------- --------
Share transactions:
Class I
Proceeds from shares issued ........................... 700,608 54,481 180,833 111,103
Reinvestment of cash distributions .................... 2,026 86 1,587 1,878
Cost of shares redeemed ............................... (86,260) (15,500) (47,866) (70,201)
-------- -------- -------- --------
Net Class I share transactions ...................... 616,374 39,067 134,554 42,780
-------- -------- -------- --------
Class A
Proceeds from shares issued ........................... 1,387 274 1,238 1,204
Reinvestment of cash distributions .................... 7 1 69 173
Cost of shares redeemed ............................... (93) (107) (931) (1,883)
-------- -------- -------- --------
Net Class A share transactions ...................... 1,301 168 376 (506)
-------- -------- -------- --------
Class B
Proceeds from shares issued ........................... 417 39 259 79
Reinvestment of cash distributions .................... 3 -- 1 --
Cost of shares redeemed ............................... (5) (38) (1) (77)
-------- -------- -------- --------
Net Class B share transactions ...................... 415 1 259 2
-------- -------- -------- --------
Increase in net assets from share transactions ............ 618,090 39,236 135,189 42,276
-------- -------- -------- --------
Total increase in net assets ............................... 638,920 41,597 140,555 45,009
-------- -------- -------- --------
NET ASSETS:
Beginning of period ........................................ 132,782 91,185 170,000 124,991
-------- -------- -------- --------
End of period .............................................. $771,702 $132,782 $310,555 $170,000
======== ======== ======== ========
</TABLE>
1 Fund commenced operations on July 10, 1998.
See Accompanying Notes
139
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
GNMA Fund Enhanced Income Fund
--------------------------------- ---------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income ......................... $ 2,537 $ 4,195 $ 2,041 $ 4,180
Net realized gain/(loss) on securities sold ... 238 922 416 143
Net unrealized appreciation
of investments securities ................... (26) 1,152 159 411
------- ------- ------- -------
Net increase in net assets
resulting from operations ................... 2,749 6,269 2,616 4,734
------- ------- ------- -------
Distributions to shareholders:
Net investment income
Class I .................................. (2,344) (4,242) (2,049) (4,063)
Class A .................................. (22) (12) (10) (114)
Realized capital gains
Class I .................................. -- (650) -- (73)
Class A -- (1) -- (2)
------- ------- ------- -------
Total distributions ........................... (2,366) (4,905) (2,059) (4,252)
------- ------- ------- -------
Share Transactions:
Class I
Proceeds from shares issued .............. 7,396 28,426 30,840 61,441
Reinvestment of cash distributions ....... 175 148 1,112 2,282
Proceeds from Common Fund (note 6) ....... -- -- -- --
Cost of shares redeemed .................. (5,533) (10,811) (30,402) (53,330)
------- ------- ------- -------
Net Class I share transactions ......... 2,038 17,763 1,550 10,393
------- ------- ------- -------
Class A
Proceeds from shares issued .............. 695 526 170 1,961
Reinvestment of cash distributions ....... 21 9 8 108
Cost of shares redeemed .................. (106) (119) (354) (3,579)
------- ------- ------- -------
Net Class A share transactions ......... 610 416 (176) (1,510)
------- ------- ------- -------
Increase (decrease) in net assets
from share transactions ..................... 2,648 18,179 1,374 8,883
------- ------- ------- -------
Total increase/(decrease) in net assets ....... 3,031 19,543 1,931 9,365
------- ------- ------- -------
NET ASSETS:
Beginning of period ........................... 84,173 64,630 72,447 63,082
------- ------- ------- -------
End of period ................................. $87,204 $84,173 $74,378 $72,447
======= ======= ======= =======
</TABLE>
1 Fund commenced operations on April 9, 1998.
See Accompanying Notes
140
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
Ohio Tax Exempt Fund Pennsylvania Municipal Fund
-------------------------------- ---------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income ......................... $ 4,708 $ 5,512 $ 1,014 $ 1,658
Net realized gain/(loss) on securities sold ... 35 196 43 (1)
Net unrealized appreciation
of investments securities ................... 1,926 2,886 318 895
-------- -------- ------- -------
Net increase in net assets
resulting from operations ................... 6,669 8,594 1,375 2,552
-------- -------- ------- -------
Distributions to shareholders:
Net investment income
Class I .................................. (4,641) (5,330) (901) (1,653)
Class A .................................. (102) (180) (3) (5)
Realized capital gains
Class I .................................. -- (90) -- (39)
Class A -- (4) -- --
-------- -------- ------- -------
Total distributions ........................... (4,743) (5,604) (904) (1,697)
-------- -------- ------- -------
Share Transactions:
Class I
Proceeds from shares issued .............. 52,648 36,338 2,423 6,749
Reinvestment of cash distributions ....... 132 147 20 22
Proceeds from Common Fund (note 6) ....... -- 51,852 -- --
Cost of shares redeemed .................. (10,581) (17,109) (2,556) (5,640)
-------- -------- ------- -------
Net Class I share transactions ......... 42,199 71,228 (113) 1,131
-------- -------- ------- -------
Class A
Proceeds from shares issued .............. 709 940 74 66
Reinvestment of cash distributions ....... 65 125 1 1
Cost of shares redeemed .................. (199) (752) (20) (25)
-------- -------- ------- -------
Net Class A share transactions ......... 575 313 55 42
-------- -------- ------- -------
Increase (decrease) in net assets
from share transactions ..................... 42,774 71,541 (58) 1,173
-------- -------- ------- -------
Total increase/(decrease) in net assets ....... 44,700 74,531 413 2,028
-------- -------- ------- -------
NET ASSETS:
Beginning of period ........................... 169,432 94,901 38,878 36,850
-------- -------- ------- -------
End of period ................................. $214,132 $169,432 $39,291 $38,878
======== ======== ======= =======
<CAPTION>
National Tax Exempt Fund
---------------------------------
For the
Six Months Ended For the
November 30, 1998 Period Ended
(Unaudited) May 31, 1998/1
----------------- -------------
<S> <C> <C>
Investment activities:
Net investment income ......................... $ 2,308 $ 532
Net realized gain/(loss) on securities sold ... 261 --
Net unrealized appreciation
of investments securities ................... 974 591
-------- -------
Net increase in net assets
resulting from operations ................... 3,543 1,123
-------- -------
Distributions to shareholders:
Net investment income
Class I .................................. (1,953) (530)
Class A .................................. (1) --
Realized capital gains
Class I .................................. -- --
Class A -- --
-------- -------
Total distributions ........................... (1,954) (530)
-------- -------
Share Transactions:
Class I
Proceeds from shares issued .............. 27,630 1,962
Reinvestment of cash distributions ....... 1 --
Proceeds from Common Fund (note 6) ....... -- 78,943
Cost of shares redeemed .................. (7,624) (1,239)
-------- -------
Net Class I share transactions ......... 20,007 79,666
-------- -------
Class A
Proceeds from shares issued .............. 370 --
Reinvestment of cash distributions ....... -- --
Cost of shares redeemed .................. (1) --
-------- -------
Net Class A share transactions ......... 369 --
-------- -------
Increase (decrease) in net assets
from share transactions ..................... 20,376 79,666
-------- -------
Total increase/(decrease) in net assets ....... 21,965 80,259
-------- -------
NETASSETS:
Beginning of period ........................... 80,259 --
-------- -------
End of period ................................. $102,224 $80,259
======== =======
</TABLE>
1 Fund commenced operations on April 9, 1998.
See Accompanying Notes
141
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
Statement of Changes in Net Assets (000)
<TABLE>
<CAPTION>
Money Market Fund Government Money Market Fund
-------------------------------- --------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income ......................... $ 72,156 $ 128,512 $ 34,135 $ 58,026
Net realized gain/(loss) on securities sold ... (2) (4) 1 (1)
----------- ----------- ----------- -----------
Net increase in net assets resulting
from operations ............................... 72,154 128,508 34,136 58,025
----------- ----------- ----------- -----------
Distributions to shareholders:
Net investment income:
Institutional ............................... (49,913) (103,139) (26,330) (47,874)
Retail ...................................... (22,325) (25,134) (7,826) (10,152)
Class B ..................................... (1) -- -- --
Realized capital gains:
Institutional ............................... -- -- -- --
Retail ...................................... -- -- -- --
Class B ..................................... -- -- -- --
----------- ----------- ----------- -----------
Total distributions .............................. (72,239) (128,273) (34,156) (58,026)
----------- ----------- ----------- -----------
Share transactions:
Institutional
Proceeds from shares issued ................. 2,233,403 5,718,525 1,564,524 3,557,896
Reinvestment of cash distributions .......... 43 1,914 417 176
Cost of shares redeemed ..................... (2,058,937) (5,751,937) (1,618,911) (3,233,359)
----------- ----------- ----------- -----------
Net Class I share transactions ........... 174,509 (31,498) (53,970) 324,713
----------- ----------- ----------- -----------
Retail
Proceeds from shares issued ................. 1,253,422 2,079,077 762,982 614,377
Reinvestment of cash distributions .......... 14,284 14,552 1,647 1,400
Cost of shares redeemed ..................... (767,863) (1,742,976) (386,871) (526,921)
----------- ----------- ----------- -----------
Net Class A share transactions ........... 499,843 350,653 377,758 88,856
----------- ----------- ----------- -----------
Class B
Proceeds from shares issued ................. 86 6 -- --
Reinvestment of cash distributions .......... 1 -- -- --
Cost of shares redeemed ..................... (1) (1) -- --
----------- ----------- ----------- -----------
Net Class B share transactions ........... 86 5 -- --
----------- ----------- ----------- -----------
Increase in net assets from
share transactions ............................ 674,438 319,160 323,788 413,569
----------- ----------- ----------- -----------
Total increase in net assets ..................... 674,353 319,395 323,768 413,568
----------- ----------- ----------- -----------
NET ASSETS:
Beginning of period ........................... 2,608,587 2,289,192 1,384,359 970,791
----------- ----------- ----------- -----------
End of period ................................. $ 3,282,940 $ 2,608,587 $ 1,708,127 $ 1,384,359
=========== =========== =========== ===========
</TABLE>
1 Fund commenced operations on September 15, 1998.
See Accompanying Notes
142
<PAGE>
[GRAPHIC OMITTED]
Financial Statements
Armada Funds
<TABLE>
<CAPTION>
Ohio Municipal
Treasury Money Market Fund Money Market Fund
--------------------------------- -----------------
For the For the
Six Months Ended For the Period Ended
November 30, 1998 Year Ended November 30, 1998
(Unaudited) May 31, 1998 (Unaudited)/1
----------------- ------------ -----------------
<S> <C> <C> <C>
Investment activities:
Net investment income ......................... $ 8,655 $ 14,828 $ 501
Net realized gain/(loss) on securities sold ... 75 8 --
--------- ----------- ---------
Net increase in net assets resulting
from operations ............................... 8,730 14,836 501
--------- ----------- ---------
Distributions to shareholders:
Net investment income:
Institutional ............................... (8,104) (14,531) (499)
Retail ...................................... (487) (297) (1)
Class B ..................................... -- -- --
Realized capital gains:
Institutional ............................... -- -- --
Retail ...................................... -- -- --
Class B ..................................... -- -- --
--------- ----------- ---------
Total distributions .............................. (8,591) (14,828) (500)
--------- ----------- ---------
Share transactions:
Institutional
Proceeds from shares issued ................. 855,625 1,565,848 148,059
Reinvestment of cash distributions .......... 26 10 --
Cost of shares redeemed ..................... (881,456) (1,482,587) (50,301)
--------- ----------- ---------
Net Class I share transactions ........... (25,805) 83,271 97,758
--------- ----------- ---------
Retail
Proceeds from shares issued ................. 165,776 14,124 6,631
Reinvestment of cash distributions .......... 246 271 --
Cost of shares redeemed ..................... (102,581) (12,854) (56)
--------- ----------- ---------
Net Class A share transactions ........... 63,441 1,541 6,575
--------- ----------- ---------
Class B
Proceeds from shares issued ................. -- -- --
Reinvestment of cash distributions .......... -- -- --
Cost of shares redeemed ..................... -- -- --
--------- ----------- ---------
Net Class B share transactions ........... -- -- --
--------- ----------- ---------
Increase in net assets from
share transactions ............................ 37,636 84,812 104,333
--------- ----------- ---------
Total increase in net assets ..................... 37,775 84,820 104,334
--------- ----------- ---------
NET ASSETS:
Beginning of period ........................... 366,827 282,007 --
--------- ----------- ---------
End of period ................................. $ 404,602 $ 366,827 $ 104,334
========= =========== =========
<CAPTION>
Pennsylvania Tax Exempt Tax Exempt
Government Money Market Fund Money Market Fund
--------------------------------- ----------------------------------
For the For the
Six Months Ended For the Six Months Ended For the
November 30, 1998 Year Ended November 30, 1998 Year Ended
(Unaudited) May 31, 1998 (Unaudited) May 31, 1998
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income ......................... $ 1,855 $ 3,188 $ 8,543 $ 16,326
Net realized gain/(loss) on securities sold ... -- (10) (36) 10
-------- --------- --------- ---------
Net increase in net assets resulting
from operations ............................... 1,855 3,178 8,507 16,336
-------- --------- --------- ---------
Distributions to shareholders:
Net investment income:
Institutional ............................... (1,357) (2,280) (5,604) (13,748)
Retail ...................................... (511) (872) (2,299) (2,665)
Class B ..................................... -- -- -- --
Realized capital gains:
Institutional ............................... -- -- -- --
Retail ...................................... -- -- -- --
Class B ..................................... -- -- -- --
-------- --------- --------- ---------
Total distributions .............................. (1,868) (3,152) (7,903) (16,413)
-------- --------- --------- ---------
Share transactions:
Institutional
Proceeds from shares issued ................. 120,952 171,384 360,845 881,569
Reinvestment of cash distributions .......... -- -- 1 1
Cost of shares redeemed ..................... (89,800) (159,015) (381,013) (833,210)
-------- --------- --------- ---------
Net Class I share transactions ........... 31,152 12,369 (20,167) 48,360
-------- --------- --------- ---------
Retail
Proceeds from shares issued ................. 63,717 127,747 352,970 381,022
Reinvestment of cash distributions .......... 229 295 2,489 2,404
Cost of shares redeemed ..................... (52,943) (115,504) (249,506) (322,804)
-------- --------- --------- ---------
Net Class A share transactions ........... 11,003 12,538 105,953 60,622
-------- --------- --------- ---------
Class B
Proceeds from shares issued ................. -- -- -- --
Reinvestment of cash distributions .......... -- -- -- --
Cost of shares redeemed ..................... -- -- -- --
-------- --------- --------- ---------
Net Class B share transactions ........... -- -- -- --
-------- --------- --------- ---------
Increase in net assets from
share transactions ............................ 42,155 24,907 85,786 108,982
-------- --------- --------- ---------
Total increase in net assets ..................... 42,142 24,933 86,390 108,905
-------- --------- --------- ---------
NET ASSETS:
Beginning of period ........................... 106,639 81,706 551,501 442,596
-------- --------- --------- ---------
End of period ................................. $148,781 $ 106,639 $ 637,891 $ 551,501
======== ========= ========= =========
</TABLE>
1 Fund commenced operations on September 15, 1998.
See Accompanying Notes
143
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
1. Fund Organization
Armada Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment management company.
The Trust was organized as a Massachusetts business trust on January 28, 1986.
The Trust is comprised of twenty four funds each of which is authorized to issue
two classes of shares designated as I and A shares. Effective January 1, 1998,
the International Equity, Small Cap Growth, Small Cap Value, Equity Growth, Core
Equity, Equity Income, Bond, Intermediate Bond and Money Market Funds
additionally began offering a third class of shares designated as B shares.
Effective May 4, 1998 and November 12, 1998 the Tax Managed Equity and Balanced
Allocation Funds, respectively, also began offering a third class of shares
designated as B shares. Each share class represents an interest in the same
portfolio of investments of the respective Fund and is substantially the same in
all respects, except that the classes are subject to different distribution
and/or shareholder service fees and investment minimums. Class A shares are sold
subject to a front-end sales charge and Class B shares are sold with a
contingent deferred sales charge, both of which may be reduced or waived under
certain circumstances.
The Trust currently has five Series that consist of the following Funds:
Equity Series
International Equity Fund, Small Cap Growth Fund, Small Cap Value Fund, Equity
Growth Fund, Tax Managed Equity Fund, Core Equity Fund, Equity Index Fund, and
Equity Income Fund;
Allocation Series
Balanced Allocation Fund;
Income Series
Total Return Advantage Fund, Bond Fund, Intermediate Bond Fund, GNMA Fund,
Enhanced Income Fund, and Real Return Advantage Fund;
Tax Exempt Series
Ohio Tax Exempt Fund, Pennsylvania Municipal Fund, and National Tax Exempt Fund;
Money Market Series
Money Market Fund, Government Money Market Fund, Treasury Money Market Fund,
Ohio Municipal Money Market Fund, Pennsylvania Tax Exempt Money Market Fund, and
Tax Exempt Money Market Fund.
As of the date of this report, the Real Return Advantage Fund had not
commenced operations.
Effective November 19, 1997, the names of the Armada Mid Cap Regional, Fixed
Income, Intermediate Government, Government, Treasury, Tax Exempt and
Pennsylvania Tax Exempt Funds were changed to the Armada Small Cap Value,
Intermediate Bond, Bond, Government Money Market, Treasury Money Market, Tax
Exempt Money Market and Pennsylvania Tax Exempt Money Market Funds,
respectively.
Fund Reorganization: On May 3, 1996, Integra Financial Corporation ("Integra
Financial") merged into National City Corporation ("National City"). Integra
Trust Company, an affiliate of Integra Financial served as Investment Adviser to
Inventor Funds, Inc. ("Inventor").
As part of the Reorganization, on September 9, 1996, the Inventor Equity
Growth Fund, Inventor GNMA Securities Fund, Inventor Intermediate Government
Securities Fund, Inventor Pennsylvania Municipal Bond Fund, and Inventor
Pennsylvania Tax Exempt Money Market Fund (the "Predecessor Funds") transferred
all of their assets and liabilities with approximate values of $47,517,535,
$63,566,229, $92,883,276, $36,673,181 and $74,142,677, respectively, in exchange
for shares of the Armada Equity Growth Fund, Armada GNMA Fund, Armada Bond Fund,
Armada Pennsylvania Municipal Fund and Armada Pennsylvania Tax Exempt Money
Market Fund, respectively. Net unrealized appreciation/(depreciation) on
investment securities included in the above amounts were $3,942,382,
($1,064,753), ($1,459,226), $344,245 and $0, respectively. The Reorganization
was executed as a tax-free reorganization in accordance with Section
368(a)(1)(F) of the Internal Revenue Code of 1986, as amended (the "Internal
Revenue Code") The results of operations, changes in net assets and financial
highlights of the Armada Equity Growth Fund, Armada GNMA Fund, Armada Bond Fund,
Armada Pennsylvania Municipal Fund and Armada Pennsylvania Tax Exempt Money
Market Fund for the year ended May 31, 1997 include those of the Predecessor
Funds.
In accordance with provisions of the Reorganization Agreement, The Trust and
Inventor were each responsible for payment of their own expenses incurred in
connection with the Reorganization to the extent not borne by their respective
<PAGE>
Investment Advisers. Accordingly, the Trust recognized approximately $200,000 in
costs connected with the Reorganization, which has been allocated among the
various funds in the Trust.
144
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
International Equity, Small Cap Growth, Small Cap Value, Equity Growth, Tax
Managed Equity, Core Equity, Equity Index, Equity Income, Balanced Allocation,
Total Return Advantage, Bond, Intermediate Bond, GNMA, Enhanced Income, Ohio Tax
Exempt, Pennsylvania Municipal, National Tax Exempt, Money Market, Government
Money Market, Treasury Money Market, Ohio Municipal Money Market, Pennsylvania
Tax Exempt Money Market and Tax Exempt Money Market Funds, (the "Funds").
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
The Ohio Tax Exempt, Pennsylvania Municipal, Ohio Municipal Money Market and
the Pennsylvania Tax Exempt Money Market Funds follow an investment policy of
investing primarily in municipal obligations of one state. The National Tax
Exempt and the Tax Exempt Money Market Funds follow an investment policy of
investing in municipal obligations of various states which may, at times,
comprise concentrations in one or several states. Economic changes affecting
each state and related public bodies and municipalities may affect the ability
of issuers within the state to pay interest on, or repay principal of, municipal
obligations held by the Ohio Tax Exempt, Pennsylvania Municipal, National Tax
Exempt, Ohio Municipal Money Market, Pennsylvania Tax Exempt Money Market, and
the Tax Exempt Money Market Funds.
Many municipalities insure repayment for their obligations. Although bond
insurance reduces the risk of loss due to default by an issuer, such bonds
remain subject to risk that the market may fluctuate for other reasons and there
is no assurance that the insurance company will meet its obligations. Insured
securities have been identified in the Statement of Net Assets.
Portfolio Valuation: With respect to the International Equity, Small Cap
Growth, Small Cap Value, Equity Growth, Tax Managed Equity, Core Equity, Equity
Index, Equity Income, Balanced Allocation, Total Return Advantage, Bond,
Intermediate Bond, GNMA, Enhanced Income, Ohio Tax Exempt, Pennsylvania
Municipal and National Tax Exempt Funds, investment securities are valued at
their closing sales price if the principal market is an exchange, or if a sale
is not reported for that day, at the mean between the most recent quoted bid and
asked prices. Unlisted securities, securities traded on a national securities
market for which market quotations are readily available, and temporary cash
investments acquired more than 60 days from maturity, are valued at the mean
between quoted bid and asked prices. Such valuations are provided by one or more
independent pricing services when such valuations are believed to reflect fair
market value. When valuing securities, pricing services consider institutional
size trading in similar groups of securities and any developments related to
specific issues, among other things. Short-term investments with maturities of
60 days or less may be valued on the basis of amortized cost, unless the Trust's
Board of Trustees determines that this does not represent fair value. Investment
securities in the Money Market, Government Money Market, Treasury Money Market,
Ohio Municipal Money Market, Pennsylvania Tax Exempt Money Market and Tax Exempt
Money Market Funds are valued twice daily for processing subscription and
redemption orders. Investment securities are valued on the basis of amortized
cost which has been determined by the Board of Trustees to represent the fair
value of the Funds' investments. Amortized cost valuation involves valuing an
instrument at its cost initially and, thereafter, assuming a constant rate of
amortization to maturity of any applicable discount or premium.
Security Transactions and Investment Income: Security transactions are
recorded on trade date. Realized gains and losses on investments sold are
recorded on the identified cost basis. Interest income is accrued on a daily
basis. Dividends are recorded on ex-dividend date. Expenses common to all of the
Funds in the Trust are allocated among them.
Dividends and Distributions to Shareholders: Dividends from the net
investment income of the Equity Growth, Tax Managed Equity, Core Equity, Equity
Index, Equity Income and Balanced Allocation Funds are declared and paid
quarterly; dividends from net investment income of the International Equity,
Small Cap Growth and Small Cap Value Funds are declared and paid annually. With
respect to each Fund, net income for dividend purposes consists of dividends,
interest income, and discounts earned (including both original issue and market
discount), less amortization of any market premiums and accrued expenses.
Dividends from the net investment income of the Total Return Advantage, Bond,
Intermediate Bond, GNMA, Enhanced Income, Ohio Tax Exempt, Pennsylvania
Municipal, National Tax Exempt, Money Market, Government Money Market, Treasury
Money Market, Ohio Municipal Money Market, Pennsylvania Tax Exempt Money Market
and Tax Exempt Money Market Funds are declared daily and paid no later than five
business days after the end of the month. Net investment income of the Total
Return Advantage, Bond, Intermediate Bond, GNMA, Enhanced Income, Money Market,
Government Money
145
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
Market, and Treasury Money Market Funds consists of dividend and interest
income, discount earned (including both original issue and market discount),
less amortization of any market premiums and accrued expenses. Net investment
income of the Ohio Tax Exempt, Pennsylvania Municipal, National Tax Exempt, Ohio
Municipal Money Market, Pennsylvania Tax Exempt Money Market, and Tax Exempt
Money Market Funds consists of interest accrued, original issue discount earned,
less amortization of any market premium and accrued expenses. Any net realized
capital gains will be distributed at least annually for all the Funds.
Federal Income Taxes: Each of the Funds is classified as a separate taxable
entity for Federal income tax purposes. Each of the Funds intends to qualify as
a separate "regulated investment company" under the Internal Revenue Code and
make the requisite distributions to shareholders that will be sufficient to
relieve it from Federal income tax and Federal excise tax. Therefore, no Federal
tax provision is required. To the extent that distributions from net investment
income and net realized capital gains exceed amounts reported in the financial
statements, such amounts are reported separately.
At November 30, 1998, the total cost of securities and the net realized
capital gains or losses on securities sold for Federal income tax purposes was
not materially different from amounts reported for financial reporting purposes.
The International Equity Fund had capital loss carryforwards at May 31,1998 of
$1,196,117 expiring in 2007. It is the intention of the International Equity
Fund to pass through foreign tax credits of $247,000.
Organization Costs: The Trust bears all costs in connection with its
organization, including the fees and expenses of registering and qualifying its
shares for distribution under Federal and state securities regulations. All
organization expenses incurred through June 30, 1998, are being amortized on a
straight-line basis over a period of five years from the date of commencement of
operations. In accordance with AICPA Statement of Position 98-5, "Reporting on
the Costs of Start-up Activities," any organization expenses incurred subsequent
to June 30, 1998, will be expensed as incurred.
Foreign Currency Translation: The books and records of the International
Equity Fund are maintained in U.S. dollars as follows: (1) the foreign currency
market values of investment securities and other assets and liabilities stated
in foreign currencies are translated at the exchange rates prevailing at the end
of the period; and (2) purchases, sales and income are translated at the rates
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Fund does not isolate the portion of gains and losses on investments which
is due to fluctuations in foreign exchange rates from that which is due to
fluctuations in the market prices of investments.
Forward Foreign Currency Contracts: The International Equity Fund enters into
forward foreign currency contracts as hedges against either specific
transactions or portfolio positions. All commitments are "marked-to-market"
daily at the applicable foreign exchange rate and any resulting unrealized gains
or losses are recorded currently. The Fund realizes gains or losses at the time
the forward contracts are extinguished. At November 30, 1998 open forward
foreign currency contracts were as follows:
Unrealized
Currency to Appreciation
Maturity (Deliver)/ In Exchange (Depreciation)
Date Receive for (000)
-------- ----------- ----------- --------------
Foreign Currency
Sales 12/01/98 UK (4,690) $(7,790) --
UK--British Pound Sterling
Futures Contracts: During the period, the Small Cap Growth and Equity Index
Funds bought and sold financial futures contracts for the purpose of hedging the
portfolios against adverse effects of anticipated movements in the market or to
maintain liquidity. When investing in futures contracts, the Funds bear the
market risk that arises from changes in the value of these financial
instruments. Upon entering into a contract, the Funds deposit and maintain as
collateral such initial margins as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Funds agree to receive
from or pay to the broker an amount of cash equal to the daily fluctuation in
the value of the contract. Such receipts and payments are known as variation
margin and are recorded by the Funds as unrealized gains or losses. When the
contract is closed, the Funds record a realized gain or loss equal to the
difference between the value of the contract at the time it was opened and the
time it was closed. At November 30, 1998 open futures contracts were as follows:
<PAGE>
Market Value
Number Covered by Unrealized
of Contracts Settlement Gain
Fund Contracts (000) Month (000)
- ---- --------- ------------ ---------- ----------
Small Cap Growth -
Russell 2000
Futures 25 4,971 Dec-98 442
Equity Index -
S&P 500
Futures 11 3,197 Dec-98 321
Mortgage Dollar Rolls: For the purpose of enhancing the Fund's yield, the
GNMA Fund may enter into mortgage dollar rolls (principally in TBA's) in which
the Fund sells mortgage securities for delivery in the current month and
simultaneously contracts to repurchase similar, but not identical, securities at
an agreed-upon price on a fixed date. The Fund accounts for such dollar rolls as
purchases and sales and maintains liquid high-grade securities in an amount at
least equal to its commitment to repurchase.
146
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
Repurchase Agreements: Repurchase Agreements are considered loans under the
1940 Act. In connection therewith, the Trust's custodian receives and holds
collateral of not less than 102% of the repurchase price plus accrued interest.
If the value of the collateral falls below this amount, the Trust will require
the seller to deposit additional collateral by the next business day. If the
request for additional collateral is not met or the seller defaults on its
repurchase obligation, the Trust maintains the right to sell the underlying
securities at market value and may claim any resulting loss against the seller.
3. Investment Adviser, Distribution Fees and Other Related Party Transactions
Fees paid by the Trust pursuant to the Advisory Agreements with National City
Investment Management Company, ("IMC" or the "Adviser"), an indirect wholly
owned subsidiary of National City Corporation, are payable monthly based on an
annual rate, listed in the table below, based on each Fund's average daily net
assets. The Adviser may from time to time waive its fees payable by the Funds.
For the period ended November 30, 1998, the Adviser has earned and waived fees
as follows:
Annual Earned Waived
Rate (000) (000)
------ -------- ------
International Equity Fund..... 1.15% $ 632 $ --
Small Cap Growth Fund......... 1.00% 232 --
Small Cap Value Fund.......... 1.00% 1,062 --
Equity Growth Fund............ 0.75% 3,500 --
Tax Managed Equity Fund....... 0.75% 456 115
Core Equity Fund.............. 0.75% 426 --
Equity Index Fund............. 0.35% 156 156
Equity Income Fund............ 0.75% 1,241 --
Balanced Allocation Fund...... 0.75% 153 22
Total Return Advantage Fund... 0.55% 849 308
Bond Fund..................... 0.55% 1,444 --
Intermediate Bond Fund........ 0.55% 583 159
GNMA Fund..................... 0.55% 235 --
Enhanced Income Fund.......... 0.45% 167 93
Ohio Tax Exempt Fund.......... 0.55% 537 537
Pennsylvania Municipal
Fund....................... 0.55% 107 68
National Tax Exempt Fund...... 0.55% 237 237
Money Market Fund............. 0.35% 5,000 1,428
Government Money
Market Fund................ 0.35% 2,384 681
Treasury Money Market Fund.... 0.30% 573 95
Ohio Municipal Money
Market Fund................ 0.35% 59 41
Pennsylvania Tax Exempt
Money Market Fund.......... 0.40% 261 163
Tax Exempt Money
Market Fund................ 0.35% 1,030 589
At November 30, 1998, advisory fees accrued and unpaid amounted to:
(000)
-------
International Equity Fund........................... $147
Small Cap Growth Fund............................... 51
Small Cap Value Fund................................ 212
Equity Growth Fund.................................. 770
Tax Managed Equity Fund............................. 139
Core Equity Fund.................................... 76
Equity Index Fund................................... (2)
Equity Income Fund.................................. 273
Balanced Allocation Fund............................ 33
Total Return Advantage Fund......................... 90
Bond Fund........................................... 335
Intermediate Bond Fund.............................. 99
GNMA Fund........................................... 39
Enhanced Income Fund................................ 13
Ohio Tax Exempt Fund................................ --
Pennsylvania Municipal Fund......................... 6
National Tax Exempt Fund............................ --
Money Market Fund................................... 635
Government Money Market Fund........................ 343
Treasury Money Market Fund.......................... 81
Ohio Municipal Money Market Fund.................... 12
Pennsylvania Tax Exempt
Money Market Fund............................... 18
Tax Exempt Money Market Fund........................ 78
During the fiscal year ended May 31, 1998, the Adviser contributed $466,000
to the Equity Growth Fund to offset the Fund's realized loss incurred on the
sale of a Standard & Poor's Depository Receipt, "SPDR".
National Asset Management Corporation ("NAM") serves as investment
sub-adviser (the "Sub Adviser") to the Core Equity and Total Return Advantage
Funds. No fees are paid to the Sub-Adviser directly from the Trust.
Wellington Management Company, LLP served, prior to August 1, 1998, as the
investment sub-adviser to the Small Cap Growth Fund and was entitled to earn a
fee pursuant to such agreement. Prior to the Reorganization, Integra Trust
Company served as investment adviser to the Pennsylvania Municipal and
Pennsylvania Tax Exempt Money Market Funds and Weiss, Peck & Greer LLC ("WP&G")
served as sub-adviser to Integra Trust Company. Subsequent to the
Reorganization, WP&G continued to serve under an agreement with National City
Bank and was entitled to earn a fee pursuant to such agreement. No fees were
paid to the Sub-Adviser directly from the Trust. Effective October 1, 1997, the
agreement with WP&G terminated and the Adviser assumed full investment
management responsibilities.
147
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[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
The Trust maintains a Shareholder Services Plan (the "Services Plan") with
respect to the Class A and B shares in the Funds. Pursuant to the Services Plan,
the Trust enters into shareholder servicing agreements with certain financial
institutions under which they agree to provide shareholder administrative
services to their customers who beneficially own Class A or B shares in
consideration for payment, listed in the table below, on an annual basis of the
net asset value of the Class A or B shares. For the period ended November 30,
1998, fees paid under the Service Plan to NatCity Investments, Inc., a
wholly-owned subsidiary of National City Corporation are as follows:
Annual Earned
Rate (000)
------ ------
International Equity Fund............ 0.25% $ --
Small Cap Growth Fund................ 0.25% --
Small Cap Value Fund................. 0.25% 56
Equity Growth Fund................... 0.25% 87
Tax Managed Equity Fund.............. 0.25% --
Core Equity Fund..................... 0.25% 1
Equity Index Fund.................... 0.25% --
Equity Income Fund................... 0.25% 69
Balanced Allocation Fund............. 0.25% --
Total Return Advantage Fund.......... 0.25% 2
Bond Fund............................ 0.25% 1
Intermediate Bond Fund............... 0.25% 4
GNMA Fund............................ 0.25% 1
Enhanced Income Fund................. 0.10% --
Ohio Tax Exempt Fund................. 0.10% 2
Pennsylvania Municipal
Fund.............................. 0.10% --
National Tax Exempt Fund............. 0.10% --
Money Market Fund.................... 0.15% 676
Government Money Market Fund......... 0.15% 242
Treasury Money Market Fund........... 0.15% 40
Ohio Municipal Money Market Fund..... 0.15% --
Pennsylvania Tax Exempt
Money Market Fund................. 0.15% 28
Tax Exempt Money Market Fund......... 0.15% 134
National City Bank serves as the Fund's Custodian. For the period ended
November 30, 1998, National City Bank has earned custodian fees as follows:
(000)
-----
International Equity Fund........................... $155
Small Cap Growth Fund............................... 6
Small Cap Value Fund............................... 26
Equity Growth Fund................................. 93
Tax Managed Equity Fund............................ 18
Core Equity Fund.................................... 11
Equity Index Fund................................... 9
Equity Income Fund.................................. 33
Balanced Allocation Fund............................ 4
Total Return Advantage Fund......................... 31
Bond Fund........................................... 52
Intermediate Bond Fund.............................. 21
GNMA Fund........................................... 8
Enhanced Income Fund................................ 8
Ohio Tax Exempt Fund................................ 30
Pennsylvania Municipal Fund......................... 4
National Tax Exempt Fund............................ 9
Money Market Fund................................... 286
Government Money Market Fund........................ 75
Treasury Money Market Fund.......................... 38
Ohio Municipal Money Market Fund.................... 3
Pennsylvania Tax Exempt Money Market Fund........... 13
Tax Exempt Money Market Fund........................ 58
The Trust and SEI Investments Distribution Co., a wholly-owned subsidiary of
SEI Investments Company ("SEI" or "Distributor") are parties to a distribution
agreement dated May 1, 1998. The Distributor receives no fees for its
distribution services under this agreement.
SEI served as distributor to the Bond, GNMA, Pennsylvania Municipal, and
Pennsylvania Tax Exempt Money Market Funds prior to the Reorganization. Under
Rule 12b-1 Distribution Plan, SEI earned and waived Fees at an annual rate of up
to 0.25% of average daily net assets of the Predecessor Funds' Class A shares.
Each Trustee receives an annual fee of $15,000 plus $3,000 for each Board
meeting attended and reimbursement of out-of-pocket expenses. The Chairman of
the Board receives an additional $5,000 per annum for services in such
148
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
capacity. Such fees are paid for services rendered to all of the Funds and are
allocated accordingly. No person who is an officer, director, trustee, or
employee of the Investment Advisers, Distributor, or any parent or subsidiary
thereof, who serves as an officer, trustee, or employee of the Trust receives
any compensation from the Trust.
Expenses paid for the period ended November 30, 1998, include legal fees paid
to Drinker, Biddle & Reath LLP. A partner of that firm is Secretary of the
Trust.
The Trust and SEI Investments Mutual Fund Services (the "Administrator") are
parties to an Administration Agreement dated May 1, 1998, under which the
Administrator provides administrative services for an annual fee of 0.07% of the
aggregate average daily net assets of the Funds up to the first eighteen billion
and 0.06% of the aggregate average daily net assets of the Funds over eighteen
billion. Prior to May 2, 1998, PFPC Inc. ("PFPC") served as Administrator and
Accounting Agent to the Trust. As compensation for services performed, each Fund
paid PFPC an asset based fee plus reimbursement of reasonable out-of-pocket
expenses.
4. Purchases and Sales of Securities
During the period ended November 30, 1998, purchases and sales of securities,
other than short-term investments or U.S. government obligations, aggregated:
Purchases Sales
--------- -----
International Equity Fund..... $127,347,093 $100,495,477
Small Cap Growth Fund......... 42,652,983 28,306,801
Small Cap Value Fund.......... 117,435,941 113,862,125
Equity Growth Fund............ 819,323,545 194,326,571
Tax Managed Equity Fund....... 4,210,428 5,373,460
Core Equity Fund.............. 29,445,357 26,844,502
Equity Index Fund............. 150,036,644 9,046,790
Equity Income Fund............ 66,491,210 39,948,338
Balanced Allocation Fund...... 44,986,895 10,521,218
Total Return Advantage Fund... 83,591,072 60,579,998
Bond Fund..................... 276,050,126 322,810,197
Intermediate Bond Fund........ 202,728,203 128,652,388
GNMA Fund..................... 1,008,672 481,908
Enhanced Income Fund.......... 41,246,227 26,558,159
Ohio Tax Exempt Fund.......... 42,723,213 2,890,130
Pennsylvania Municipal Fund... 3,711,483 2,792,292
National Tax Exempt Fund...... 29,507,543 8,622,090
Purchases and sales of long-term U.S. government obligations were:
Purchases Sales
--------- -----
Total Return Advantage Fund.. $ 141,004,203 $142,445,007
Bond Fund.................... 1,286,536,592 634,479,553
Intermediate Bond Fund....... 255,034,871 188,366,153
GNMA Fund.................... 48,758,840 44,122,944
Enhanced Income Fund......... 38,986,530 54,155,459
At November 30, 1998 the total cost of securities for Federal income tax
purposes was not materially different from amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and depreciation
for securities held by the Funds at November 30, 1998, is as follows:
Aggregate Aggregate
Gross Gross
Appreciation Depreciation Net
(000) (000) (000)
------------ ----------- -----
International Equity Fund... $ 21,682 $ (4,929) $ 16,753
Small Cap Growth Fund....... 7,741 (4,024) 3,717
Small Cap Value Fund........ 34,085 (36,383) (2,298)
Equity Growth Fund.......... 241,103 (28,652) 212,451
Tax Managed Equity Fund..... 166,685 (182) 166,503
Core Equity Fund............ 24,942 (2,795) 22,147
Equity Index Fund........... 9,636 (7,157) 2,479
Equity Income Fund.......... 112,354 (7,826) 104,528
Balanced Allocation Fund.... 2,617 (1,213) 1,404
Total Return Advantage Fund. 11,195 (277) 10,918
Bond Fund................... 12,367 (1,008) 11,359
Intermediate Bond Fund...... 3,538 (195) 3,343
GNMA Fund................... 1,477 (178) 1,299
Enhanced Income Fund........ 525 (87) 438
Ohio Tax Exempt Fund........ 8,278 (103) 8,175
Pennsylvania Municipal Fund. 2,041 (37) 2,004
National Tax Exempt Fund.... 3,842 (91) 3,751
149
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
5. Shares of Beneficial Interest
The Trust's Declaration of Trust authorizes the Board of Trustees to issue an
unlimited number of shares of beneficial interest and to classify or reclassify
any unissued shares of the Trust into one or more additional classes of shares
and to classify or reclassify any class of shares into one or more series of
shares. Transactions in capital shares are summarized on the following pages for
the Funds.
<TABLE>
<CAPTION>
For the Period Ended November 30, 1998 (000)
-------------------------------------------------------------------------------------
Class I Class A Class B
------------------------ ----------------------- -------------------------
Shares Value Shares Value Shares Value
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
International Equity Fund
Shares sold .............................. 2,825 $ 29,360 35 $ 373 2 $ 22
Shares reinvested ........................ -- -- -- -- -- --
Shares repurchased ....................... (318) (3,296) (3) (34) -- (1)
--------- -------- --------- -------- --------- ------
Net increase ............................. 2,507 $ 26,064 32 339 2 $ 21
========= ======== ========= ======== ========= ======
Small Cap Growth Fund
Shares sold .............................. 2,035 $ 21,053 24 $ 265 61 $ 669
Shares reinvested ........................ -- -- -- -- -- --
Shares repurchased ....................... (728) (7,744) (5) (52) (60) (660)
--------- -------- --------- -------- --------- ------
Net increase ............................. 1,307 $ 13,309 19 $ 213 1 $ 9
========= ======== ========= ======== ========= ======
Small Cap Value Fund
Shares sold .............................. 2,117 $ 29,146 633 $ 8,438 16 $ 207
Shares reinvested ........................ 23 352 -- 4 -- --
Shares repurchased ....................... (2,352) (31,528) (489) (6,530) -- (1)
--------- -------- --------- -------- --------- ------
Net increase/(decrease) .................. (212) $ (2,030) 144 $ 1,912 16 $ 206
========= ======== ========= ======== ========= ------
Equity Growth Fund
Shares sold .............................. 52,249 $671,977 4,108 $ 92,158 12 $ 252
Shares sold from common fund ............. 11,713 155,473 -- -- -- --
Shares reinvested ........................ -- -- -- -- -- --
Shares repurchased ....................... (28,419) (107,062) (361) (16,080) -- (13)
--------- -------- --------- -------- --------- ------
Net increase ............................. 35,543 $720,388 3,747 $ 78,078 12 $ 239
========= ======== ========= ======== ========= ======
Tax Managed Equity Fund
Shares sold .............................. 345 $ 3,502 155 $ 1,615 72 $ 773
Shares sold from common fund ............. 4,949 36,638 -- -- -- --
Shares reinvested ........................ -- 1 -- 1 -- 1
Shares repurchased ....................... (962) (9,878) (4) (75) -- (12)
--------- -------- --------- -------- --------- ------
Net increase ............................. 4,332 $ 30,263 151 $ 1,541 72 $ 762
========= ======== ========= ======== ========= ------
Core Equity Fund
Shares sold .............................. 172 $ 1,966 31 $ 351 24 $ 286
Shares reinvested ........................ 4 46 -- -- -- --
Shares repurchased ....................... (25) (287) (20) (235) -- (1)
--------- -------- --------- -------- --------- ------
Net increase ............................. 151 $ 1,725 11 $ 116 24 $ 285
========= ======== ========= ======== ========= =======
</TABLE>
150
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
<TABLE>
<CAPTION>
For the Period Ended November 30, 1998 (000)
------------------------------------------------------------------------------
Class I Class A Class B
---------------------- ------------------- ------------------
Shares Value Shares Value Shares Value
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Equity Index Fund*
Shares sold ............................... 15,409 $152,333 52 $ 487 -- $ --
Shares reinvested ......................... 33 281 -- -- -- --
Shares repurchased ........................ (1,024) (9,441) -- -- -- --
--------- -------- --------- ------ ------- ------
Net increase .............................. 14,418 $143,173 52 $ 487 -- $ --
========= ======== ========= ====== ======= ======
Equity Income Fund
Shares sold ............................... 2,752 $ 45,662 165 $2,771 32 $ 541
Shares sold from common fund .............. 12,893 160,431 -- -- -- --
Shares reinvested ......................... 44 708 1 11 -- 1
Shares repurchased ........................ (1,328) (21,556) (31) (872) -- (18)
--------- -------- --------- ------ ------- ------
Net increase .............................. 14,361 $185,245 135 $1,910 32 $ 524
========= ======== ========= ====== ======= ======
Balanced Allocation Fund*
Shares sold ............................... 6,005 $ 59,867 29 $ 281 10 $ 94
Shares reinvested ......................... 12 114 -- -- -- --
Shares repurchased ........................ (645) (6,139) -- -- -- --
--------- -------- --------- ------ ------- ------
Net increase .............................. 5,372 $ 53,842 29 $ 281 10 $ 94
========= ======== ========= ====== ======= ======
Total Return Advantage Fund
Shares sold ............................... 3,342 $ 34,529 332 $3,446 -- $ --
Shares reinvested ......................... 534 5,566 7 69 -- --
Shares repurchased ........................ (2,773) (28,774) (29) (320) -- --
--------- -------- --------- ------ ------- ------
Net increase .............................. 1,103 $ 11,321 310 $3,195 -- $ --
========= ======== ========= ====== ======= ======
Bond Fund
Shares sold ............................... 46,658 $263,764 132 $1,387 40 $ 417
Shares sold from common fund .............. 42,948 436,844 -- -- -- --
Shares reinvested ......................... 193 2,026 1 7 -- 3
Shares repurchased ........................ (29,456) (86,260) (8) (93) -- (5)
--------- -------- --------- ------ ------- ------
Net increase .............................. 60,343 $616,374 125 $1,301 40 $ 415
========= ======== ========= ====== ======= ======
Intermediate Bond Fund
Shares sold ............................... 10,310 $110,325 115 $1,238 24 $ 259
Shares sold from common fund .............. 6,642 70,508 -- -- -- --
Shares reinvested ......................... 148 1,587 6 69 -- 1
Shares repurchased ........................ (4,452) (47,866) (86) (931) -- (1)
--------- -------- --------- ------ ------- ------
Net increase .............................. 12,648 $134,554 35 $ 376 24 $ 259
========= ======== ========= ====== ======= ======
GNMA Fund
Shares sold ............................... 714 $ 7,396 67 $ 695 -- $ --
Shares reinvested ......................... 17 175 2 21 -- --
Shares repurchased ........................ (533) (5,533) (10) (106) -- --
--------- -------- --------- ------ ------- ------
Net increase .............................. 198 $ 2,038 59 $ 610 -- $ --
========= ======== ========= ====== ======= ======
</TABLE>
- --------------------
*Fund commenced operations on July 10, 1998.
151
<PAGE>
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Notes to Financial Statements (Unaudited)
<TABLE>
<CAPTION>
For the Period Ended November 30, 1998 (000)
--------------------------------------------------------------------------------
Class I Class A Class B
------------------------- ------------------------- -----------------
Shares Value Shares Value Shares Value
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Enhanced Income Fund
Shares sold .............................. 3,048 $ 30,840 17 $ 170 -- $ --
Shares reinvested ........................ 110 1,112 1 8 -- --
Shares repurchased ....................... (3,003) (30,402) (35) (354) -- --
-------- -------- -------- ----- -- ----
Net increase/(decrease) .................. 155 $ 1,550 (17) $(176) -- $ --
======== ======== ======== ===== == ====
Ohio Tax Exempt Fund
Shares sold .............................. 4,708 $ 52,648 63 $ 709 -- $ --
Shares reinvested ........................ 12 132 6 65 -- --
Shares repurchased ....................... (948) (10,581) (18) (199) -- --
-------- -------- -------- ----- -- ----
Net increase ............................. 3,772 $ 42,199 51 $ 575 -- $ --
======== ======== ======== ===== == ====
Pennsylvania Municipal Fund
Shares sold .............................. 230 $ 2,423 7 $ 74 -- $ --
Shares reinvested ........................ 1 20 -- 1 -- --
Shares repurchased ....................... (244) (2,556) (2) (20) -- --
-------- -------- -------- ----- -- ----
Net increase/(decrease) .................. (13) $ (113) 5 $ 55 -- $ --
======== ======== ======== ===== == ====
National Tax Exempt Fund
Shares sold .............................. 608 $ 6,134 37 $ 370 -- $ --
Shares sold from common fund ............. 2,165 21,496 -- -- -- --
Shares reinvested ........................ -- 1 -- -- -- --
Shares repurchased ....................... (754) (7,624) -- (1) -- --
-------- -------- -------- ----- == ----
Net increase ............................. 2,019 $ 20,007 37 $ 369 -- $ --
======== ======== ======== ===== == ====
</TABLE>
Since the following Funds have each sold and redeemed shares only at a
constant net asset value of $1.00 per share, the number of shares represented by
such sales, reinvestments, and redemptions is the same as the amounts shown
below for such transactions:
<TABLE>
<CAPTION>
For the Period Ended November 30, 1998 (000)
------------------------------------------------------
Class I Class A Class B
------- ------- -------
<S> <C> <C> <C>
Money Market Fund
Shares sold ................................................ $ 2,233,403 $ 1,253,422 $ 86
Shares reinvested .......................................... 43 14,284 1
Shares repurchased ......................................... (2,058,937) (767,863) (1)
----------- ----------- ------
Net increase ............................................... $ 174,509 $ 499,843 $ 86
=========== =========== ======
Government Money Market Fund
Shares sold ................................................ $ 1,564,524 $ 762,982 $ --
Shares reinvested .......................................... 417 1,647 --
Shares repurchased ......................................... (1,618,911) (386,871) --
----------- ----------- ------
Net increase/(decrease) .................................... $ (53,970) $ 377,758 $ --
=========== =========== ======
Treasury Money Market Fund
Shares sold ................................................ $ 855,625 $ 165,776 $ --
Shares reinvested .......................................... 26 246 --
Shares repurchased ......................................... (881,456) (102,581) --
----------- ----------- ------
Net increase/(decrease) .................................... $ (25,805) $ 63,441 $ --
=========== =========== ======
Ohio Municipal Money Market Fund*
Shares sold ................................................ $ 148,059 $ 6,631 $ --
Shares reinvested .......................................... -- -- --
Shares repurchased ......................................... (50,301) (56) --
----------- ----------- ------
Net increase ............................................... $ 97,758 $ 6,575 $ --
=========== =========== ======
</TABLE>
- -------------------
*Fund commenced operations on September 15, 1998.
152
<PAGE>
[GRAPHI OMITTED]
Notes to Financial Statements (Unaudited)
<TABLE>
<CAPTION>
For the Period Ended November 30, 1998 (000)
--------------------------------------------
Class I Class A Class B
------- ------- -------
<S> <C> <C> <C>
Pennsylvania Tax Exempt Money Market Fund
Shares sold ............................. $ 102,952 $ 63,717 $ --
Shares reinvested ....................... -- 229 --
Shares repurchased ...................... (89,800) (52,943) --
--------- --------- ----
Net increase ............................ $ 31,152 $ 11,003 $ --
========= ========= ====
Tax Exempt Money Market Fund
Shares sold ............................. $ 360,845 $ 352,970 $ --
Shares reinvested ....................... 1 2,489 --
Shares repurchased ...................... (381,013) (249,506) --
--------- --------- ----
Net increase/(decrease) ................. $ (20,167) $ 105,953 $ --
========= ========= ====
</TABLE>
<TABLE>
<CAPTION>
For the Period Ended May 31, 1998 (000)
-------------------------------------------------------------------------------
Class I Class A Class B
------------------------ ---------------------- --------------------
Shares Value Shares Value Shares Value
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
International Equity Fund*
Shares sold .............................. 12,708 $ 127,644 30 $ 308 -- $ 2
Shares reinvested ........................ -- 3 -- -- -- --
Shares repurchased ....................... (185) (1,906) (4) (44) -- (1)
--------- --------- --------- ------- --------- -----
Net increase ............................. 12,523 $ 125,741 26 $ 264 -- $ 1
========= ========= ========= ======= ========= =====
Small Cap Growth Fund*
Shares sold .............................. 4,822 $ 51,438 30 $ 364 2 $ 22
Shares reinvested ........................ 8 79 -- -- -- --
Shares repurchased ....................... (170) (1,949) (2) (26) (2) (21)
--------- --------- --------- ------- --------- -----
Net increase ............................. 4,660 $ 49,568 28 $ 338 -- $ 1
========= ========= ========= ======= ========= =====
Small Cap Value Fund
Shares sold .............................. 6,633 $ 108,947 367 $ 6,063 35 $ 544
Shares reinvested ........................ 1,006 15,365 61 915 -- --
Shares repurchased ....................... (2,710) (44,464) (71) (1,135) (31) (490)
--------- --------- --------- ------- --------- -----
Net increase ............................. 4,929 $ 79,848 357 $ 5,843 4 $ 54
========= ========= ========= ======= ========= =====
Equity Growth Fund
Shares sold .............................. 5,311 $ 112,234 225 $ 4,854 14 $ 308
Shares reinvested ........................ 839 15,580 44 816 -- --
Shares repurchased ....................... (3,367) (72,440) (60) (1,269) (13) (287)
--------- --------- --------- ------- --------- -----
Net increase ............................. 2,783 $ 55,374 209 $ 4,401 1 $ 21
========= ========= ========= ======= ========= =====
Tax Managed Equity Fund**
Shares sold .............................. 145 $ 1,477 1 $ 10 9 $ 88
Shares sold from Common Fund ............. 16,361 163,615 -- -- -- --
Shares reinvested ........................ -- -- -- -- -- --
Shares repurchased ....................... (507) (5,090) -- -- -- --
--------- --------- --------- ------- --------- -----
Net increase ............................. 15,999 $ 160,002 1 $ 10 9 $ 88
========= ========= ========= ======= ========= =====
Core Equity Fund*
Shares sold .............................. 10,369 $ 106,584 36 $ 399 -- $ 2
Shares reinvested ........................ 49 503 -- -- -- --
Shares repurchased ....................... (952) (10,061) -- (2) -- --
--------- --------- --------- ------- --------- -----
Net increase ............................. 9,736 $ 97,026 36 $ 397 -- 2
========= ========= ========= ======= ========= =====
</TABLE>
- --------------------
*Fund commenced operations on August 1, 1997.
**Fund commenced operations on April 9, 1998.
153
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
<TABLE>
<CAPTION>
For the Period Ended May 31, 1998 (000)
-------------------------------------------------------------------------------
Class I Class A Class B
------------------------ ------------------------ --------------------
Shares Value Shares Value Shares Value
------ ----- ------ ----- ------ -----
<S> <C> <C> <C> <C> <C> <C>
Equity Income Fund
Shares sold .............................. 4,192 $ 70,486 114 $ 1,955 3 $ 45
Shares reinvested ........................ 353 5,680 2 34 -- --
Shares repurchased ....................... (2,031) (34,560) (21) (353) (3) (44)
--------- --------- --------- ------- ------- -----
Net increase ............................. 2,514 $ 41,606 95 $ 1,636 -- $ 1
========= ========= ========= ======= ======= =====
Total Return Advantage Fund
Shares sold .............................. 8,225 $ 83,718 63 $ 651 -- $ --
Shares reinvested ........................ 930 9,472 12 111 -- --
Shares repurchased ....................... (6,481) (65,987) (232) (2,374) -- --
--------- --------- --------- ------- ------- -----
Net increase/(decrease) .................. 2,674 $ 27,203 (157) $(1,612) -- $ --
========= ========= ========= ======= ======= =====
Bond Fund
Shares sold .............................. 5,321 $ 54,488 24 $ 274 4 $ 39
Shares reinvested ........................ 11 112 -- 1 -- --
Shares repurchased ....................... (1,520) (15,500) (10) (107) (4) (38)
--------- --------- --------- ------- ------- -----
Net increase ............................. 3,812 $ 34,100 14 $ 168 -- $ 1
========= ========= ========= ======= ======= =====
Intermediate Bond Fund
Shares sold .............................. 10,533 $ 111,103 113 $ 1,204 7 $ 79
Shares reinvested ........................ 178 1,878 17 173 -- --
Shares repurchased ....................... (6,658) (70,201) (178) (1,883) (7) (77)
--------- --------- --------- ------- ------- -----
Net increase/(decrease) .................. 4,053 $ 42,780 (48) $ (506) -- $ 2
========= ========= ========= ======= ======= =====
GNMA Fund
Shares sold .............................. 2,751 $ 28,426 51 $ 526 -- $ --
Shares reinvested ........................ 15 148 1 9 -- --
Shares repurchased ....................... (1,046) (10,811) (12) (119) -- --
--------- --------- --------- ------- ------- -----
Net increase ............................. 1,720 $ 17,763 40 $ 416 -- $ --
========= ========= ========= ======= ======= =====
Enhanced Income Fund
Shares sold .............................. 6,108 $ 61,441 195 $ 1,961 -- $ --
Shares reinvested ........................ 227 2,282 12 108 -- --
Shares repurchased ....................... (5,302) (53,330) (356) (3,579) -- --
--------- --------- --------- ------- ------- -----
Net increase/(decrease) .................. 1,033 $ 10,393 (149) $(1,510) -- $ --
========= ========= ========= ======= ======= =====
Ohio Tax Exempt Fund
Shares sold .............................. 3,295 $ 36,338 94 $ 940 -- $ --
Shares sold from Common Fund ............. 4,684 51,852 -- -- -- --
Shares reinvested ........................ 13 147 11 125 -- --
Shares repurchased ....................... (1,545) (17,109) (68) (752) -- --
--------- --------- --------- ------- ------- -----
Net increase ............................. 6,447 $ 71,228 37 $ 313 -- $ --
========= ========= ========= ======= ======= =====
Pennsylvania Municipal Fund
Shares sold .............................. 649 $ 6,749 6 $ 66 -- $ --
Shares reinvested ........................ 2 22 -- 1 -- --
Shares repurchased ....................... (542) (5,640) (2) (25) -- --
--------- --------- --------- ------- ------- -----
Net increase ............................. 109 $ 1,131 4 $ 42 -- $ --
========= ========= ========= ======= ======= =====
National Tax Exempt Fund**
Shares sold .............................. 234 $ 1,962 -- $ -- -- $ --
Shares sold from Common Fund ............. 7,894 78,943 -- -- -- --
Shares reinvested ........................ -- -- -- -- -- --
Shares repurchased ....................... (124) (1,239) -- -- -- --
--------- --------- --------- ------- ------- -----
Net increase ............................. 8,004 $ 79,666 -- $ -- -- $ --
========= ========= ========= ======= ======= =====
</TABLE>
--------------------
**Fund commenced operations on April 9, 1998.
154
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
Since the following Funds have each sold and redeemed shares only at a
constant net asset value of $1.00 per share, the number of shares represented by
such sales, reinvestments, and redemptions is the same as the amounts shown
below for such transactions:
<TABLE>
<CAPTION>
For the Period Ended May 31, 1998 (000)
-----------------------------------------------------
Class I Class A Class B
------- ------- -------
<S> <C> <C> <C>
Money Market Fund
Shares sold ................................................... $ 5,718,525 $ 2,079,077 $ 5
Shares reinvested ............................................. 1,914 14,552 --
Shares repurchased ............................................ (5,751,937) (1,742,976) (1)
----------- ----------- -------
Net increase/(decrease) ....................................... $ (31,498) $ 350,653 $ 4
=========== =========== =======
Government Money Market Fund
Shares sold ................................................... $ 3,557,896 $ 614,377 $ --
Shares reinvested ............................................. 176 1,400 --
Shares repurchased ............................................ (3,233,359) (526,921) --
----------- ----------- -------
Net increase .................................................. $ 324,713 $ 88,856 $ --
=========== =========== =======
Treasury Money Market Fund
Shares sold ................................................... $ 1,565,848 $ 14,124 $ --
Shares reinvested ............................................. 10 271 --
Shares repurchased ............................................ (1,482,587) (12,854) --
----------- ----------- -------
Net increase .................................................. $ 83,271 $ 1,541 $ --
=========== =========== =======
Pennsylvania Tax Exempt Money Market Fund
Shares sold ................................................... $ 881,569 $ 381,021 $ --
Shares reinvested ............................................. 1 2,404 --
Shares repurchased ............................................ (833,210) (322,804) --
----------- ----------- -------
Net increase .................................................. $ 48,360 $ 60,621 $ --
=========== =========== =======
Tax Exempt Money Market Fund
Shares sold ................................................... $ 171,384 $ 127,747 $ --
Shares reinvested ............................................. -- 295 --
Shares repurchased ............................................ (159,015) (115,504) --
----------- ----------- -------
Net increase .................................................. $ 12,369 $ 12,538 $ --
=========== =========== =======
</TABLE>
6. Common Trust Fund Conversions
On October 9, 1998, the Fort Wayne Large Cap Equity Fund, Fort Wayne Equity
Fund, Fort Wayne Income Fund, and Fort Wayne Tax Free Fund of National City Bank
of Indiana (formerly, Fort Wayne National Bank) were converted into the Armada
Tax Managed Equity Fund, Armada Tax Managed Equity Fund, Armada Intermediate
Bond Fund and Armada National Tax Exempt Fund, respectively. The assets, which
consisted of securities and related receivables, were converted on a tax-free
basis. At the time of the conversion, 3,582,852 of Class I shares of the Armada
Tax Managed Equity Fund, 1,366,366 of Class I shares of the Armada Tax Managed
Equity Fund, 6,642,146 of Class I shares of the Armada Intermediate Bond Fund
and 2,165,202 of Class I shares of the Armada National Tax Exempt Fund were
issued. The net assets of the Fort Wayne Large Cap Equity Fund, Fort Wayne
Equity Fund, Fort Wayne Income Fund, and Fort Wayne Tax Free Fund immediately
before the conversion were $33,678,806, $12,843,563, $71,602,332 and
$22,085,062, respectively, which included unrealized appreciation of $3,966,820,
$5,917,249, $1,094,445 and $588,915, respectively.
On August 7, 1998, the National City Equity Fund for Personal Trusts #1 and
the National City Income Equity Fund for Personal Trusts of National City Bank
were converted into the Armada Equity Growth and Armada Equity Income Funds,
respectively. The assets, which consisted of securities and related receivables,
were converted on a tax-free basis. At the time of the conversion, 11,712,500 of
Class I shares of the Armada Equity Growth Fund and 12,892,934 of Class I shares
of the Armada Equity Income Fund were issued. The net assets of the National
City Equity Fund for Personal Trusts #1 and National City Income Equity Fund for
Personal Trusts #1 immediately before the conversion were $257,675,010 and
$212,346,617, respectively, which included unrealized appreciation of
$102,201,766 and $51,916,108.
On August 14, 1998, the National City Fixed Income Fund for Personal Trusts
of National City Bank was converted into the Armada Bond Fund. The assets which
consisted of securities and related receivables, were converted on a tax-free
basis. At the time of this conversion, 42,948,272 of Class I shares of the
Armada Bond Fund were issued. The net assets of the National City Fixed Income
Fund for Personal Trusts
155
<PAGE>
[GRAPHIC OMITTED]
Notes to Financial Statements (Unaudited)
immediately before the conversion were $444,085,137 which included unrealized
appreciation of $7,241,615.
On March 6, 1998, the National City Ohio Tax Exempt Fund of National City
Bank was converted into the Armada Ohio Tax Exempt Fund. The assets, which
consisted of securities and related receivables, were converted on a tax free
basis. At the time of the conversion, 4,684,047 of Class I shares of the Armada
Ohio Tax Exempt Fund were issued. The net assets of the National City Ohio Tax
Exempt Fund immediately before the conversion were $51,852,399, which included
unrealized appreciation of $2,009,105.
On April 9, 1998, the National City Personal Trust Tax Exempt Fund of
National City Bank was converted into the Armada National Tax Exempt Fund. The
assets, which consisted of securities and related receivables, were converted on
a tax-free basis. At the time of the conversion, 7,894,277 of Class I shares of
the Armada National Tax Exempt Fund were issued. The net assets of the National
City Personal Trust Tax Exempt Fund immediately before the conversion were
$78,942,768, which included unrealized appreciation of $1,718,900.
On April 9, 1998, the National City Personal Trust Equity Fund #2 of National
City Bank was converted into the Armada Tax Managed Equity Fund. The assets
which consisted of securities and related receivables, were converted on a
tax-free basis. At the time of the conversion, 16,361,494 of Class I shares of
the Armada Tax Managed Equity Fund were issued. The net assets of the National
City Personal Trust Equity Fund #2 immediately before the conversion were
$163,614,941 which included unrealized appreciation of $129,709,103.
156
<PAGE>
[GRAPHIC OMITTED]
Results of Proxy Voting (Unaudited)
August 13, 1998 Shareholder Meeting
A special meeting of the Shareholders of the International Equity, Small Cap
Growth and Small Cap Value Funds was held on August 13, 1998. Shareholders
approved the following proposal:
Proposal.
To approve a new Investment Advisory Agreement providing for increased
advisory fees between the Trust and National City Investment Management Company
(formerly National City Bank) (the "Adviser") with respect to the International
Equity Fund, Small Cap Growth Fund and Small Cap Value Fund.
At least 98.69% of shareholders in each Fund voted to approve the proposal.
No more than 1.04% in each Fund voted against the proposal.
157
<PAGE>
[GRAPHIC OMITTED]
Notes
<PAGE>
[GRAPHIC OMITTED]
Notes
<PAGE>
[GRAPHIC OMITTED]
Notes
<PAGE>
[GRAPHIC OMITTED]
Armada Funds
Board of Trustees
Robert D. Neary
Chairman
Retired Co-Chairman, Ernst & Young
Director:
Cold Metal Products, Inc.
Strategic Distribution, Inc.
Herbert R. Martens, Jr.
President
Executive Vice President,
National City Corporation
Chairman, President and Chief Executive
Officer, NatCity Investments,Inc.
Leigh Carter
Retired President and Chief Operating
Officer, B.F. Goodrich Company
Director:
Kirtland Capital Corporation
Morrison Products
TruSeal Technologies
John F. Durkott
President and Chief Operating Officer,
Kittle's Home Furnishings Center, Inc.
Robert J. Farling
Retired Chairman, President and Chief
Executive Officer, Centerior Energy
Richard W. Furst, Dean
Professor of Finance and Dean
Carol Martin Gatton College of Business
and Economics, University of Kentucky
Director:
Foam Design, Inc.
The Seed Corporation
Gerald L. Gherlein
Executive Vice President and General
Counsel, Eaton Corporation
Trustee:
WVIZ Educational Television
J. William Pullen
President and Chief Executive Officer,
Whayne Supply Company
The Armada Trustees also serve as the Trustees of the Parkstone Mutual Funds.
[LOGO OMITTED]
Armada Funds
<PAGE>
[LOGO OMITTED]
Armada Funds
One Freedom Valley Drive
Oaks, PA 19456
www.armadafunds.com
Investment Adviser
National City.
Investment Management Company
1900 East Ninth Street, 22nd Floor
Cleveland, Ohio 44114
BULK RATE
U.S. POSTAGE
PAID
CLEVELAND, OH
PERMIT NO. 1535
