[GRAPHIC OMITTED]
ARMADA FUNDS
1999 SEMI-ANNUAL REPORT
[LOGO OMITTED]
<PAGE>
[GRAPHIC OMITTED] ARMADA FUNDS
SEMI-ANNUAL REPORT -- NOVEMBER 30, 1999
(UNAUDITED)
ARMADA CORE EQUITY FUND
ARMADA EQUITY GROWTH FUND
ARMADA EQUITY INCOME FUND
ARMADA EQUITY INDEX FUND
ARMADA INTERNATIONAL EQUITY FUND
ARMADA SMALL CAP GROWTH FUND
ARMADA SMALL CAP VALUE FUND
ARMADA TAX MANAGED EQUITY FUND
ARMADA BALANCED ALLOCATION FUND
ARMADA BOND FUND
ARMADA ENHANCED INCOME FUND
ARMADA GNMA FUND
ARMADA INTERMEDIATE BOND FUND
ARMADA TOTAL RETURN ADVANTAGE FUND
ARMADA NATIONAL TAX EXEMPT BOND FUND
ARMADA OHIO TAX EXEMPT BOND FUND
ARMADA PENNSYLVANIA MUNICIPAL BOND FUND
ARMADA GOVERNMENT MONEY MARKET FUND
ARMADA MONEY MARKET FUND
ARMADA OHIO MUNICIPAL
MONEY MARKET FUND
ARMADA PENNSYLVANIA TAX EXEMPT
MONEY MARKET FUND
ARMADA TAX EXEMPT
MONEY MARKET FUND
ARMADA TREASURY MONEY
MARKET FUND
TABLE OF CONTENTS
Chairman's Message ..................................... 1
FINANCIAL STATEMENTS
Statement of Net Assets and Financial Highlights ....... 4
Statements of Operations ............................... 114
Statements of Changes in Net Assets .................... 118
NOTES TO FINANCIAL STATEMENTS .......................... 126
[BOUNDING BOX]
[INNER BOUNDING BOX]
NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE
[END INNER BOUNDING BOX]
AN INVESTMENT IN MONEY MARKET FUNDS IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE MONEY MARKET 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]
<PAGE>
[GRAPHIC OMITTED] CHAIRMAN'S MESSAGE
Dear Shareholders:
The past New Year's Eve was a memorable moment around the globe, as we
celebrated a new millennium. While 1999 was filled with a great deal of
anticipation and Y2K uncertainty, we can now greet the future with confidence
having addressed the challenges of this once in a lifetime event.
Despite Y2K concerns, Armada Funds continued to experience growth in 1999.
During the six-month period ended November 30, 1999, assets increased more than
half a billion dollars to $12.3 billion.
We continued to see strong performance in the equity sector, with exceptional
performance from the International Equity Fund for the eleven months ended
November 30, 1999. With a return of 31.32% (institutional shares) and 23.78% (A
shares), the fund was able to outperform its benchmark, the EAFE, by 14.81% and
7.27%, respectively, in a period when EAFE had outperformed the S&P 500 by 2.2%.
The solid performance of our funds this period was due in part to global
economic recovery, as well as the experience of our portfolio management teams.
THE CHANGING FACE OF BUSINESS
With the dawning of the Internet, consumer expectations were rapidly
transformed, and it became apparent that the business world had to change with
the times.
Last February, Armada Funds introduced its new Web site to Armada direct
shareholders, and it has evolved significantly in a very short period. As of
June 28, 1999, direct shareholders were able to access account information and
perform transactions online. This new function has allowed people to manage
their investments from the convenience of their homes, without compromising the
security of their transactions. Industry experts agreed that the site was easy
to use, when an evaluation team from IBM Corporation's e-business group gave the
site an "A" rating for its overall design and navigation.
You will currently find fund information, quarterly highlights, prospectuses,
the Total Investment Planning (TIP) newsletter, daily NAV updates, investing
calculators and more by visiting WWW.ARMADAFUNDS.COM, and we will continue to
keep you updated as new enhancements are available.
IN CLOSING . . .
Armada Funds understands the importance of asset diversification and building
a portfolio that reflects your goals and risk tolerance. We strive to create a
broad array of products for our clients and are proud to offer 23 different fund
choices to help you achieve a well-diversified portfolio.
We wish you and your family health and prosperity in the year ahead, and
thank you for your continued investment with us. If you have any questions
regarding the funds, please visit our Web site or call 800-622-FUND (3863).
Sincerely,
/s/signature omitted
Robert D. Neary
Chairman
[ARMADA LOGO OMITTED]
1
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[ARMADA LOGO OMITTED]
Financial Statements
FOR THE PERIOD ENDED NOVEMBER 30, 1999
(UNAUDITED)
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA CORE EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 98.9%
BANKS -- 3.2%
Chase Manhattan 25,660 $ 1,982
Comerica 29,580 1,568
Commerce Bancshares 43,575 1,637
--------
5,187
--------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.8%
Interpublic Group of Companies 61,510 2,891
--------
BUSINESS SERVICES -- 6.6%
Automatic Data Processing 101,420 5,008
Cintas# 27,120 1,246
Computer Sciences* 38,100 2,486
Fiserv* 58,040 2,060
--------
10,800
--------
CHEMICALS -- 2.4%
E.I. duPont de Nemours 39,495 2,347
Praxair 36,940 1,648
--------
3,995
--------
COMMUNICATIONS EQUIPMENT -- 3.4%
Lucent Technologies 57,380 4,192
Tellabs*# 21,260 1,379
--------
5,571
--------
COMPUTER HARDWARE -- 4.2%
Cisco Systems* 52,724 4,702
International Business Machines 20,690 2,132
--------
6,834
--------
COMPUTER SERVICES -- 0.5%
Ceridian* 41,590 899
--------
COMPUTER SOFTWARE -- 3.8%
Microsoft* 67,270 6,125
--------
DRUGS & HEALTH CARE -- 11.5%
Bristol-Myers Squibb 56,700 4,143
Johnson & Johnson 32,260 3,347
Lilly (Eli) 35,570 2,552
Merck 55,860 4,385
Pfizer 44,730 1,619
Schering-Plough 51,800 2,648
--------
18,694
--------
FINANCIAL SERVICES -- 4.8%
Associates First Capital, Cl A 59,240 1,970
Citigroup 47,625 2,566
Fannie Mae 48,510 3,232
--------
7,768
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
FOOD & BEVERAGE -- 1.4%
Coca Cola 33,950 $ 2,285
--------
HOUSEHOLD FURNITURE & FIXTURES -- 0.8%
Masco 54,980 1,388
--------
INSURANCE -- 7.8%
American General 26,850 1,968
American International Group 48,443 5,002
MGIC Investment 30,810 1,741
PMI Group 29,115 1,454
Radian Group 52,620 2,572
--------
12,737
--------
MACHINERY -- 4.3%
Applied Materials* 30,030 2,926
Caterpillar 40,250 1,867
Ingersoll Rand 45,530 2,205
--------
6,998
--------
MEDICAL & MEDICAL SERVICES -- 2.7%
Guidant 35,720 1,786
Medtronic 66,556 2,587
--------
4,373
--------
METALS & MINING -- 1.7%
Alcoa# 42,220 2,765
--------
OFFICE & BUSINESS EQUIPMENT -- 2.5%
Lexmark International, Cl A* 17,300 1,436
Pitney Bowes 54,400 2,608
--------
4,044
--------
OIL MACHINERY & EQUIPMENT -- 1.4%
Schlumberger 36,890 2,216
--------
PAPER & FOREST PRODUCTS -- 2.2%
Champion International 31,370 1,739
Willamette Industries 46,530 1,925
--------
3,664
--------
PETROLEUM REFINING -- 6.0%
Chevron 9,590 849
Conoco 16,022 420
Exxon 30,310 2,404
Mobil 38,120 3,976
Texaco 34,620 2,110
--------
9,759
--------
RETAIL -- 10.8%
CVS 58,530 2,323
Dayton Hudson 39,700 2,801
Home Depot 54,480 4,307
See Accompanying Notes
4
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA CORE EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number of Value
Shares/Par (000) (000)
----------------- --------
COMMON STOCK -- CONTINUED
RETAIL -- CONTINUED
Safeway* 51,950 $ 1,916
Wal-Mart 58,960 3,398
Walgreen# 97,960 2,853
--------
17,598
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 2.4%
Intel 50,280 3,856
--------
SPECIALTY CHEMICALS -- 0.8%
Sigma Aldrich 45,000 1,288
--------
SPECIALTY MACHINERY -- 2.9%
General Electric 35,930 4,671
--------
TECHNOLOGY -- 4.4%
Altera* 52,110 2,807
Linear Technology 28,520 2,027
Maxim Integrated Products* 29,740 2,389
--------
7,223
--------
TELEPHONE & TELECOMMUNICATION -- 4.5%
BellSouth 60,420 2,791
MCI WorldCom* 27,970 2,313
SBC Communications 43,910 2,281
--------
7,385
--------
TOBACCO -- 0.1%
Philip Morris 7,060 186
--------
TOTAL COMMON STOCK
(Cost $121,326) 161,200
--------
CASH EQUIVALENT -- 1.3%
Goldman Sachs Financial Square
Premium Money Market
Fund 2,193 2,193
--------
TOTAL CASH EQUIVALENT
(Cost $2,193) 2,193
--------
TOTAL INVESTMENTS -- 100.2%
(Cost $123,519) $163,393
========
OTHER ASSETS AND LIABILITIES,
NET -- (0.2%) (352)
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 10,685,759 outstanding shares of
beneficial interest $109,051
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 202,629 outstanding shares of
beneficial interest 2,669
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 86,676 outstanding shares of
beneficial interest 1,137
Accumulated net realized gain on investments 10,326
Net unrealized appreciation on investments 39,874
Net investment loss (16)
--------
TOTAL NET ASSETS -- 100.0% $163,041
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $14.86
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $14.80
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($14.80 / 94.5%) $15.66
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $14.68
========
- ------------------------------------------------
* NON-INCOME PRODUCTING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
CL -- CLASS
See Accompanying Notes
5
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA CORE EQUITY FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months For the For the
Ended November 30, 1999 Year Ended Period Ended
(Unaudited) May 31, 1999 May 31, 1998
----------------------------- --------------------------- -----------------------------
Class I Class A Class B Class I Class A Class B Class I2 Class A2 Class B2
-------- ------- ------- ------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $13.75 $13.71 $ 13.63 $ 11.35 $11.34 $11.33 $ 10.00 $10.00 $10.25
-------- ------ ------- -------- ------ ------ -------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.02 0.01 (0.00) (0.02)3 (0.05)3 (0.16)3 0.05 0.04 0.00
Net gain on securities (realized
and unrealized) 1.09 1.08 1.05 2.94 2.93 2.97 1.35 1.34 1.08
-------- ------ ------- -------- ------ ------ -------- ------ ------
Total from investment operations 1.11 1.09 1.05 2.92 2.88 2.81 1.40 1.38 1.08
-------- ------ ------- -------- ------ ------ -------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.00) (0.00) (0.00) (0.01) (0.00) (0.00) (0.05) (0.04) (0.00)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.51) (0.51) (0.51) (0.00) (0.00) (0.00)
-------- ------ ------- -------- ------ ------ -------- ------ ------
Total distributions (0.00) (0.00) (0.00) (0.52) (0.51) (0.51) (0.05) (0.04) (0.00)
-------- ------ ------- -------- ------ ------ -------- ------ ------
Net asset value, end of period $ 14.86 $ 14.80 $ 14.68 $ 13.75 $13.71 $13.63 $ 11.35 $11.34 $11.33
======== ======= ======= ======== ====== ====== ======== ====== ======
TOTAL RETURN 8.49%5 8.42%1,5 8.10%1,5 26.08% 25.78%1 25.17%1 14.03%5 13.85%1,5 10.54%1,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $158,769 $ 3,000 $ 1,272 $145,603 $1,731 $1,106 $110,504 $ 408 $ 2
Ratio of expenses to average net
assets 0.99%4 1.25%4 1.95%4 0.98% 1.23% 1.94% 0.89%4 1.14%4 1.83%4
Ratio of net investment income/
(loss) to average net assets 0.04%4 (0.22)%4 (0.92)%4 (0.15)% (0.40)% (1.11)% 0.61%4 0.14%4 (0.51)%4
Ratio of expenses to average net
assets before fee waivers 0.99%4 1.25%4 1.95%4 0.98% 1.23% 1.94% 1.06%4 1.30%4 2.00%4
Ratio of net investment income/
(loss) to average net assets
before fee waivers 0.04%4 (0.22)%4 (0.92)%4 (0.15)% (0.40)% (1.11)% 0.44%4 0.04%4 (0.50)%4
Portfolio turnover rate 18% 18% 18% 43% 43% 43% 60% 60% 60%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON AUGUST 1, 1997,
AUGUST 1, 1997 AND JANUARY 6, 1998, RESPECTIVELY.
3 CALCULATED BASED UPON AVERAGE SHARES OUTSTANDING.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
6
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY GROWTH FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 98.0%
AIRCRAFT -- 0.4%
United Technologies 95,600 $ 5,401
--------
BANKS -- 2.4%
Comerica 80,950 4,290
MBNA 537,500 13,572
Northern Trust# 62,200 6,022
State Street 163,600 12,014
--------
35,898
--------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.4%
Charter Communications* 70,600 1,637
Omnicom Group# 211,000 18,594
--------
20,231
--------
BUSINESS SERVICES -- 1.2%
Automatic Data Processing 357,200 17,637
--------
CABLE TELEVISION -- 1.3%
Comcast, Cl A Special 444,800 20,099
--------
CHEMICALS -- 0.9%
Avery Dennison 150,000 8,906
Monsanto# 112,000 4,725
--------
13,631
--------
COMMUNICATIONS EQUIPMENT -- 6.3%
Lucent Technologies# 495,000 36,166
Nortel Networks# 440,000 32,560
Qualcomm* 70,000 25,362
--------
94,088
--------
COMPUTER HARDWARE -- 9.2%
Cisco Systems* 776,000 69,210
EMC* 301,800 25,219
Hewlett Packard 31,700 3,008
International Business
Machines 239,200 24,653
Sun Microsystems* 108,000 14,283
--------
136,373
--------
COMPUTER SOFTWARE -- 3.9%
Microsoft* 632,000 57,542
--------
DRUGS & HEALTH CARE -- 10.8%
American Home Products 174,000 9,048
Bristol-Myers Squibb 365,200 26,682
Johnson & Johnson 183,300 19,017
Lilly (Eli) 56,000 4,018
Merck 265,000 20,803
Pfizer 724,700 26,225
Schering-Plough 513,000 26,227
Warner-Lambert 315,000 28,252
--------
160,272
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
ELECTRICAL SERVICES -- 0.2%
Texas Utilities 65,000 $ 2,328
--------
ENTERTAINMENT -- 0.9%
AT&T-Liberty Media, Cl A*# 316,400 13,229
--------
FINANCIAL SERVICES -- 4.5%
American Express 145,000 21,940
Citigroup 315,000 16,971
Fannie Mae 163,000 10,860
Freddie Mac 197,700 9,761
J.P. Morgan 54,000 7,101
--------
66,633
--------
FOOD & BEVERAGE -- 1.0%
Coca Cola 132,000 8,885
PepsiCo 195,000 6,740
--------
15,625
--------
HOUSEHOLD PRODUCTS -- 3.0%
Colgate Palmolive 325,000 17,834
Procter & Gamble 254,000 27,432
--------
45,266
--------
INSURANCE -- 2.7%
American International Group 387,825 40,043
--------
MACHINERY -- 0.8%
Applied Materials*# 130,000 12,667
--------
MEDICAL & MEDICAL SERVICES -- 0.8%
Medtronic 311,600 12,113
--------
MISCELLANEOUS BUSINESS SERVICES -- 0.6%
Concord EFS*# 320,000 8,480
--------
MISCELLANEOUS MANUFACTURING -- 1.9%
Tyco International 701,658 28,110
--------
MOTORCYCLE & MOTOR SCOOTER -- 1.0%
Harley-Davidson 232,300 14,170
--------
OFFICE & BUSINESS EQUIPMENT -- 2.0%
Lexmark International, Cl A* 230,000 19,090
Pitney Bowes 237,000 11,361
--------
30,451
--------
OIL MACHINERY & EQUIPMENT -- 0.9%
Schlumberger# 233,000 13,995
--------
PAPER & FOREST PRODUCTS -- 1.1%
International Paper# 306,000 15,969
--------
PERSONAL CARE -- 0.3%
Gillette 111,400 4,477
--------
PETROLEUM & FUEL PRODUCTS -- 0.8%
Burlington Resources# 342,000 11,500
--------
See Accompanying Notes
7
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY GROWTH FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
PETROLEUM REFINING -- 4.6%
BP Amoco, ADR# 85,000 $ 5,180
Chevron# 207,000 18,332
Coastal 270,000 9,518
Conoco 522,840 13,692
Exxon 282,000 22,366
--------
69,088
--------
PRINTING & PUBLISHING -- 1.3%
Time Warner# 310,000 19,123
--------
RETAIL -- 1.3%
Costco Wholesale*# 212,600 19,493
--------
RETAIL DRUG STORES -- 1.5%
CVS 302,000 11,986
Walgreen# 354,000 10,310
--------
22,296
--------
RETAIL FOOD CHAINS -- 1.3%
Kroger* 350,200 7,464
Safeway* 317,000 11,689
--------
19,153
--------
RETAIL STORES -- 9.1%
Dayton Hudson 282,500 19,934
Gap 125,000 5,063
Home Depot 352,698 27,885
Lowe's 154,000 7,671
Tandy 413,000 31,646
TJX Companies 385,000 10,082
Wal-Mart# 567,000 32,673
--------
134,954
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 5.2%
Altera* 230,000 12,391
Analog Devices* 160,000 9,190
Intel# 395,000 30,292
Texas Instruments# 268,000 25,745
--------
77,618
--------
SPECIALTY MACHINERY -- 4.2%
Emerson Electric 100,000 5,700
General Electric 439,800 57,174
--------
62,874
--------
TELEPHONE & TELECOMMUNICATION -- 7.7%
Alltel 281,000 24,307
BellSouth 244,000 11,270
GTE 196,000 14,308
MCI WorldCom* 316,500 26,171
SBC Communications 485,400 25,210
Vodafone Group# 280,000 13,213
--------
114,479
--------
TRAVEL -- 0.8%
Carnival, Cl A 270,900 11,953
--------
Number of Value
Shares/Par (000) (000)
---------------- --------
COMMON STOCK -- CONTINUED
WHOLESALE -- 0.7%
Cardinal Health# 45,000 $ 2,354
Sysco# 217,700 8,286
----------
10,640
----------
TOTAL COMMON STOCK
(Cost $961,369) 1,457,899
----------
CASH EQUIVALENT -- 1.9%
Fidelity Domestic Money Market
Fund 28,861 28,861
----------
TOTAL CASH EQUIVALENT
(Cost $28,861) 28,861
----------
TOTAL INVESTMENTS -- 99.9%
(Cost $990,230) $1,486,760
==========
OTHER ASSETS AND LIABILITIES,
NET -- 0.1% 866
----------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
47,168,771 outstanding shares
of beneficial interest 837,408
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
6,282,636 outstanding shares
of beneficial interest 131,892
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
84,083 outstanding shares
of beneficial interest 2,055
Accumulated net realized gain on
investments 20,060
Net unrealized appreciation on investments 496,530
Net investment loss (319)
----------
TOTAL NET ASSETS -- 100.0% $1,487,626
==========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $27.80
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $27.70
==========
MAXIMUM OFFERING PRICE
PER SHARE-- CLASS A ($27.70 / 94.5%) $29.31
==========
NET ASSET VALUE & OFFERING
PRICE PER SHARE-- CLASS B $27.41
==========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
See Accompanying Notes
8
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA EQUITY GROWTH FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999
----------------------------- ---------------------------
Class I Class A Class B Class I Class A Class B
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 24.61 $ 24.55 $24.33 $ 21.35 $ 21.35 $21.28
---------- ------- ------ ---------- -------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) 0.03 (0.00) (0.05) (0.03)3 (0.09)3 (0.27)3
Net gain on securities (realized
and unrealized) 3.16 3.15 3.13 4.28 4.28 4.31
---------- ------- ------ ---------- -------- ------
Total from investment operations 3.19 3.15 3.08 4.25 4.19 4.04
---------- ------- ------ ---------- -------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
Dividends from net realized
capital gains (0.00) (0.00) (0.00) (0.99) (0.99) (0.99)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
---------- ------ ------ ---------- -------- ------
Total distributions (0.00) (0.00) (0.00) (0.99) (0.99) (0.99)
---------- ------ ------ ---------- -------- ------
Net asset value, end of period $ 27.80 $ 27.70 $27.41 $ 24.61 $ 24.55 $24.33
========== ======== ====== ========== ======== ======
TOTAL RETURN 13.62%5 13.48%1,5 13.26%1,5 20.16% 19.88%1 19.22%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $1,311,296 $174,026 $2,304 $1,262,154 $156,356 $1,400
Ratio of expenses to average net
assets 0.90%4 1.15%4 1.86%4 0.92% 1.17% 1.88%
Ratio of net investment income/
(loss) to average net assets 0.01%4 (0.24)%4 (0.95)%4 (0.11)% (0.36)% (1.07)%
Ratio of expenses to average net
assets before fee waivers 0.90%4 1.15%4 1.86%4 0.92% 1.17% 1.88%
Ratio of net investment income/
(loss) to average net assets
before fee waivers 0.01%4 (0.24)%4 (0.95)%4 (0.11)% (0.36)% (1.07)%
Portfolio turnover rate 14% 14% 14% 57% 57% 57%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
1998 1997 1996 1995
----------------------------- ----------------- ----------------- -----------------
Class I Class A Class B2 Class I Class A Class I Class A Class I Class A
-------- ------- ------- -------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 18.63 $ 18.67 $19.44 $ 18.02 $18.05 $ 14.77 $14.79 $ 13.66 $13.68
-------- ------- ------ -------- ------ -------- ------ -------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income/(loss) (0.00) (0.04) (0.24) 0.09 0.05 0.14 0.10 0.21 0.18
Net gain on securities (realized
and unrealized) 5.00 4.99 2.08 4.66 4.66 3.46 3.47 1.21 1.21
-------- ------- ------ -------- ------ -------- ------ -------- ------
Total from investment operations 5.00 4.95 1.84 4.75 4.71 3.60 3.57 1.42 1.39
-------- ------- ------ -------- ------ -------- ------ -------- ------
Less Distributions
Dividends from net investment
income (0.01) (0.00) (0.00) (0.09) (0.05) (0.14) (0.10) (0.20) (0.17)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) (0.02) (0.01) (0.02) (0.02) (0.00) (0.00)
Dividends from net realized
capital gains (2.27) (2.27) (0.00) (4.03) (4.03) (0.19) (0.19) (0.00) (0.00)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.11) (0.11)
-------- ------ ------ -------- ------ -------- ------ -------- ------
Total distributions (2.28) (2.27) (0.00) (4.14) (4.09) (0.35) (0.31) (0.31) (0.28)
-------- ------ ------ -------- ------ -------- ------ -------- ------
Net asset value, end of period $ 21.35 $ 21.35 $21.28 $ 18.63 $18.67 $ 18.02 $18.05 $ 14.77 $14.79
======== ======= ====== ======== ====== ======== ====== ======== ======
TOTAL RETURN 28.65% 28.32%1 27.90%1,4 29.57% 29.24%1 24.61% 24.34%1 10.62% 10.35%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $352,413 $12,380 $ 24 $255,594 $6,931 $166,671 $6,013 $119,634 $5.974
Ratio of expenses to average net
assets 0.98% 1.23% 1.92%4 0.97% 1.22% 1.01% 1.26% 1.01% 1.27%
Ratio of net investment income/
(loss) to average net assets (0.01)% (0.26)% (0.92)%4 0.49% 0.25% 0.85% 0.60% 1.53% 1.23%
Ratio of expenses to average net
assets before fee waivers 0.98% 1.23% 1.92%4 0.97% 1.22% 1.03% 1.28% 1.02% 1.28%
Ratio of net investment income/
(loss) to average net assets
before fee waivers (0.01)% (0.26)% (0.92)%4 0.49% 0.25% 0.83% 0.58% 1.51% 1.22%
Portfolio turnover rate 260% 260% 260% 197% 197% 74% 74% 17% 17%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS B COMMENCED OPERATIONS ON JANUARY 6, 1998.
3 CALCULATED BASED UPON AVERAGE SHARES OUTSTANDING.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
9
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 96.9%
AEROSPACE -- 3.1%
General Dynamics 127,100 $ 6,554
Northrop Grumman 95,453 5,363
United Technologies 70,200 3,966
--------
15,883
--------
AUTOMOTIVE -- 3.3%
Ford Motors 120,500 6,085
General Motors 92,100 6,631
Genuine Parts # 175,600 4,522
--------
17,238
--------
BANKS -- 13.9%
Bank of America 177,139 10,363
Chase Manhattan 77,300 5,971
Comerica 169,400 8,978
First Tennessee National 145,100 4,770
Fleet Boston Financial 129,600 4,900
PNC 170,000 9,478
Southtrust 280,200 10,875
UnionBanCal 275,800 12,152
Washington Mutual # 156,800 4,547
--------
72,034
--------
BUILDING & BUILDING SUPPLIES -- 1.8%
Armstrong World Industries 97,200 3,256
Masco 243,100 6,138
--------
9,394
--------
CHEMICALS -- 3.4%
Dow # 62,984 7,377
E.I. duPont de Nemours 75,700 4,499
RPM 470,550 5,529
--------
17,405
--------
COMPUTERS -- 1.6%
International Business
Machines 82,600 8,513
--------
DIVERSIFIED MANUFACTURING -- 1.8%
Minnesota Mining &
Manufacturing 65,900 6,298
Textron 40,700 2,892
--------
9,190
--------
DRUGS & HEALTH CARE -- 0.1%
American Home Products 10,800 562
--------
ELECTRICAL SERVICES -- 2.7%
Consolidated Edison # 86,200 2,974
Duke Energy 63,400 3,214
FPL Group 75,700 3,312
GPU 52,400 1,677
LG&E Energy 145,400 2,908
--------
14,085
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
FINANCIAL SERVICES -- 4.4%
Fannie Mae 136,700 $ 9,108
Freddie Mac 104,800 5,175
J.P. Morgan 65,300 8,587
--------
22,870
--------
FOOD & BEVERAGE -- 3.9%
Flowers Industries 224,100 3,670
General Mills 238,200 8,977
Sara Lee 308,600 7,484
--------
20,131
--------
GAMES, TOYS & CHILDREN'S VEHICLES -- 0.3%
Mattel 112,600 1,612
--------
GAS & NATURAL GAS -- 3.8%
Consolidated Natural Gas 154,725 9,922
Enron 258,600 9,843
--------
19,765
--------
HANDTOOLS & GENERAL HARDWARE -- 2.2%
Fortune Brands 222,300 7,600
Snap-On Tools 123,000 3,721
--------
11,321
--------
HOUSEHOLD APPLIANCES -- 0.6%
Maytag 62,600 2,985
--------
INSURANCE -- 4.0%
Allstate 56,500 1,480
Chubb 78,661 4,213
Cigna 70,400 5,790
Marsh & McLennan 120,250 9,455
--------
20,938
--------
MACHINERY -- 0.7%
Caterpillar # 35,200 1,632
Deere # 41,100 1,765
--------
3,397
--------
MEDICAL & MEDICAL SERVICES -- 0.8%
Baxter International 62,400 4,216
--------
METALS & MINING -- 3.5%
Alcoa # 227,300 14,888
USX-U.S. Steel Group # 133,400 3,377
--------
18,265
--------
OFFICE & BUSINESS EQUIPMENT -- 1.9%
Pitney Bowes 149,300 7,157
Xerox 95,000 2,571
--------
9,728
--------
See Accompanying Notes
10
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
PAPER & FOREST PRODUCTS -- 2.0%
Kimberly-Clark 64,000 $ 4,088
Temple-Inland 21,000 1,202
Weyerhaeuser 82,800 5,072
--------
10,362
--------
PETROLEUM REFINING -- 14.0%
Atlantic Richfield 124,500 11,999
Chevron 130,100 11,522
Mobil 198,600 20,716
Royal Dutch Petroleum 177,300 10,283
Texaco # 202,600 12,346
Ultramar Diamond
Shamrock # 230,300 5,829
--------
72,695
--------
PRINTING & PUBLISHING -- 0.5%
New York Times, Cl A 64,800 2,491
--------
PROFESSIONAL SERVICES -- 2.1%
Dun & Bradstreet 166,900 4,506
H & R Block # 146,200 6,287
--------
10,793
--------
REAL ESTATE INVESTMENT TRUST -- 3.2%
Arden Realty 205,200 3,950
Developers Diversified Realty 184,700 2,574
Duke Realty 324,800 6,009
Kimco Realty 65,000 2,161
Mack-Cali Realty 70,400 1,738
--------
16,432
--------
RETAIL -- 3.4%
Intimate Brands # 103,295 4,429
J.C. Penney 106,000 2,365
May Department Stores 205,800 6,920
Sears Roebuck # 108,700 3,716
--------
17,430
--------
SPECIALTY MACHINERY -- 3.2%
Cooper Industries 82,700 3,551
Emerson Electric 111,200 6,338
Hubbell 95,700 2,668
Thomas & Betts 104,000 4,264
--------
16,821
--------
Number of Value
Shares/Par (000) (000)
---------------- --------
COMMON STOCK -- CONTINUED
TELEPHONE & TELECOMMUNICATION -- 9.0%
AT&T 292,750 $ 16,357
Bell Atlantic # 82,540 5,226
GTE 170,800 12,468
SBC Communications 236,485 12,282
--------
46,333
--------
TOBACCO -- 1.1%
UST 211,900 5,642
--------
UTILITIES -- 0.6%
American Water Works 118,500 3,029
--------
TOTAL COMMON STOCK
(Cost $432,840) 501,560
--------
PREFERRED STOCK -- 2.1%
FINANCIAL -- 1.4%
American General Delaware,
CV to 1.2288 Shares 80,195 7,298
--------
PAPER & FOREST PRODUCTS -- 0.7%
International Paper,
CV to .9259 Shares* 70,386 3,616
--------
TOTAL PREFERRED STOCK
(Cost $9,136) 10,914
--------
CASH EQUIVALENT -- 0.8%
Fidelity Domestic Money
Market Fund 4,054 4,054
--------
TOTAL CASH EQUIVALENT
(Cost $4,054) 4,054
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $446,030) $516,528
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.2% 1,054
--------
See Accompanying Notes
11
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
29,165,734 outstanding shares
of beneficial interest $394,362
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
687,173 outstanding shares
of beneficial interest 11,474
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
71,369 outstanding shares
of beneficial interest 1,215
Accumulated net realized gain on investments 38,435
Net unrealized appreciation on investments 70,498
Undistributed net investment income 1,598
--------
TOTAL NET ASSETS -- 100.0% $517,582
========
Net Asset Value, Offering and
Redemption Price Per
Share -- Class I $17.30
========
Net Asset Value and Redemption
Price Per Share-- Class A $17.27
========
Maximum Offering Price Per
Share-- Class A ($17.27 / 94.5%) $18.28
========
Net Asset Value and Offering
Price Per Share-- Class B $17.21
========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
CL -- CLASS
CV -- CONVERTIBLE
See Accompanying Notes
12
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA EQUITY INCOME FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999
----------------------------- ---------------------------
Class I Class A Class B Class I Class A Class B
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 18.80 $ 18.79 $18.69 $ 17.53 $ 17.51 $17.54
-------- ------- ------ -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.17 0.14 0.09 0.30 0.21 0.17
Net gain on securities (realized
and unrealized) (1.47) (1.49) (1.45) 1.50 1.55 1.39
-------- ------- ------ -------- ------- ------
Total from investment operations (1.30) (1.35) (1.36) 1.80 1.76 1.56
-------- ------- ------ -------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.20) (0.17) (0.12) (0.28) (0.23) (0.16)
Dividends from net realized
capital gains (0.00) (0.00) (0.00) (0.25) (0.25) (0.25)
-------- ------ ------ -------- ------- ------
Total distributions (0.20) (0.17) (0.12) (0.53) (0.48) (0.41)
-------- ------ ------ -------- ------- ------
Net asset value, end of period $ 17.30 $ 17.27 $17.21 $ 18.80 $ 18.79 $18.69
======== ======= ====== ======== ======= ======
TOTAL RETURN (7.26)%4 (7.45)%1,5 (7.62)%1,4 10.62% 10.40%1 9.14%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $504,489 $11,865 $1,228 $548,361 $11,075 $ 997
Ratio of expenses to average net
assets 0.97%3 1.22%3 1.93%3 0.93% 1.18% 1.89%
Ratio of net investment income
to average net assets 1.84%3 1.59%3 0.89%3 2.07% 1.82% 1.11%
Ratio of expenses to average net
assets before fee waivers 0.97%3 1.22%3 1.93%3 0.93% 1.18% 1.89%
Ratio of net investment income
to average net assets
before fee waivers 1.84%3 1.59%3 0.89%3 2.07% 1.82% 1.11%
Portfolio turnover rate 17% 17% 17% 19% 19% 19%
</TABLE>
<TABLE>
<CAPTION>
For the Year For the Period
Ended May 31, Ended May 31,
1998 1997 1996 1995
---------------------------- ----------------- ----------------- -----------------
Class I Class A Class B2 Class I Class A Class I Class A Class I2 Class A2
-------- ------- -------- -------- ------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 14.87 $ 14.86 $16.28 $ 12.66 $12.65 $ 11.01 $11.01 $ 10.00 $10.26
-------- ------- ------ -------- ------ -------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.27 0.26 0.46 0.30 0.31 0.34 0.33 0.34 0.26
Net gain on securities (realized
and unrealized) 3.44 3.41 0.86 2.73 2.68 1.79 1.77 0.94 0.75
-------- ------- ------ -------- ------ -------- ------ ------- ------
Total from investment operations 3.71 3.67 1.32 3.03 2.99 2.13 2.10 1.28 1.01
-------- ------- ------ -------- ------ -------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.32) (0.29) (0.06) (0.31) (0.27) (0.34) (0.32) (0.27) (0.26)
Distributions from net realized
capital gains (0.73) (0.73) (0.00) (0.51) (0.51) (0.14) (0.14) (0.00) (0.00)
-------- ------ ------ -------- ------ -------- ------ ------- ------
Total distributions (1.05) (1.02) (0.06) (0.82) (0.78) (0.48) (0.46) (0.27) (0.26)
-------- ------ ------ -------- ------ -------- ------ ------- ------
Net asset value, end of period $ 17.53 $ 17.51 $17.54 $ 14.87 $14.86 $ 12.66 $12.65 $ 11.01 $11.01
======== ======= ====== ======== ====== ======== ====== ======= ======
TOTAL RETURN 25.69% 25.41%1 25.58%1,3 24.62% 24.33%1 19.72% 19.37%1 14.34%3 13.18%1,3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $193,923 $2,151 $ 3 $127,130 $ 410 $ 61,978 $ 263 $36,194 $ 125
Ratio of expenses to average net
assets 0.92% 1.17% 1.86%3 1.01% 1.26% 1.06% 1.31% 0.99%3 1.41%3
Ratio of net investment income/
(loss) to average net assets 1.80% 1.62% 0.68%3 2.44% 2.17% 3.02% 2.75% 3.87%3 3.45%3
Ratio of expenses to average net
assets before fee waivers 0.92% 1.17% 1.86%3 1.01% 1.26% 1.08% 1.32% 1.21%3 1.45%3
Ratio of net investment income/
(loss) to average net assets
before fee waivers 1.80% 1.62% 0.68%3 2.44% 2.17% 3.00% 2.74% 3.66%3 3.40%3
Portfolio turnover rate 18% 18% 18% 35% 35% 53% 53% 12% 12%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS
ON JULY 1, 1994, AUGUST 22, 1994 AND JANUARY 6, 1998, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
13
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 95.6%
AEROSPACE & DEFENSE -- 0.3%
General Dynamics 8,052 $ 415
Lockheed Martin 15,972 317
Northrop Grumman 2,806 158
Raytheon, Cl B 13,648 419
--------
1,309
--------
AIR TRANSPORTATION -- 0.3%
AMR* 6,084 370
Delta Air Lines 5,673 279
FDX* 12,022 507
Southwest Airlines 20,372 332
US Airways* 2,877 80
--------
1,568
--------
AIRCRAFT -- 0.8%
Allied-Signal # 22,239 1,330
Boeing 38,819 1,584
United Technologies 19,468 1,100
--------
4,014
--------
APPAREL/TEXTILES -- 0.1%
Liz Claiborne 2,462 92
Russell 1,311 17
Springs Industries, Cl A 692 28
Vanity Fair 4,805 144
--------
281
--------
AUTOMOTIVE -- 1.2%
Dana 6,699 186
Delphi 22,836 360
Eaton 2,918 226
Ford 48,897 2,469
General Motors 26,037 1,875
Genuine Parts # 7,236 186
Navistar International* 2,673 99
Paccar 3,165 130
Tenneco* 1,377 11
TRW 4,900 256
--------
5,798
--------
BANKS -- 5.8%
Amsouth 15,905 359
Bank of America 69,818 4,084
Bank of New York # 29,719 1,185
Bank One 47,401 1,671
BB&T 12,916 415
Chase Manhattan 33,643 2,599
Comerica 6,318 335
Fifth Third Bancorp 10,968 768
First Union 38,666 1,496
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
BANKS -- CONTINUED
Firstar 39,802 $ 1,035
Fleet Boston Financial 37,248 1,408
Golden West Financial 2,224 224
Huntington Bancshares 9,310 258
Keycorp 18,137 490
MBNA 32,406 818
Mellon Financial 20,783 757
National City 24,984 623
Northern Trust # 4,506 436
PNC 12,286 685
Regions 9,050 248
Republic New York 4,235 299
Southtrust 6,768 263
State Street 6,516 479
Summit Bancorp 7,157 233
SunTrust 13,003 909
Synovus 10,967 219
U.S. Bancorp 29,571 1,011
Union Planters 5,778 246
Wachovia 8,174 633
Washington Mutual # 23,406 679
Wells Fargo 66,659 3,100
--------
27,965
--------
BEAUTY PRODUCTS -- 0.5%
Avon 10,541 384
Gillette 43,854 1,762
International Flavors &
Fragrances 4,290 158
--------
2,304
--------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.2%
CBS* 30,813 1,602
Clear Channel
Communications* # 13,647 1,097
Interpublic Group of
Companies 11,399 536
Mediaone Group* 24,516 1,943
Omnicom Group # 7,173 632
--------
5,810
--------
BUILDING & BUILDING SUPPLIES -- 0.1%
Armstrong World Industries 1,620 54
Masco 17,903 452
McDermott International 2,399 21
Owens Corning 2,216 35
Sherwin Williams 6,841 147
--------
709
--------
See Accompanying Notes
14
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
BUILDING & CONSTRUCTION -- 0.1%
Centex 2,409 $ 57
Fluor 3,065 129
Vulcan Materials 4,043 163
--------
349
--------
BUSINESS SERVICES -- 1.7%
Adobe Systems 4,931 339
Autodesk 2,382 70
Automatic Data Processing 25,008 1,235
BMC Software* 9,671 704
Cabletron Systems* 7,037 161
Cendant* 29,115 482
Computer Associates
International # 21,725 1,412
Computer Sciences* 6,467 422
Compuware* 14,434 488
Deluxe 3,046 80
Ecolab 5,233 181
Electronic Data Systems 19,925 1,281
First Data 17,340 750
Novell* 13,541 265
Parametric Technology* 10,882 247
Peoplesoft* 9,832 185
Shared Medical Systems 1,080 47
--------
8,349
--------
CABLE TELEVISION -- 0.3%
Comcast, Cl A Special # 30,291 1,369
--------
CANNED SPECIALTIES -- 0.2%
Campbell Soup 17,548 783
--------
CHEMICALS -- 1.4%
Air Products & Chemicals 9,268 300
Avery Dennison 4,591 273
Dow # 8,895 1,042
E.I. duPont de Nemours 41,903 2,491
Eastman Chemical 3,162 123
FMC* 1,285 62
Great Lakes Chemical 2,363 78
Hercules 4,287 102
Monsanto # 25,613 1,081
PPG Industries 7,017 411
Praxair 6,442 287
Rohm & Haas 8,803 322
Union Carbide 5,383 315
W.R. Grace & Company* 2,877 39
--------
6,926
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
COMBINATION UTILITIES -- 0.1%
Entergy 9,976 $ 275
PG&E 15,519 347
--------
622
--------
COMMUNICATIONS EQUIPMENT -- 3.7%
ADC Telecommunications* 5,675 303
Andrew* 3,316 46
General Instrument* 7,007 459
ITT Industries 3,553 124
Lucent Technologies # 123,840 9,048
Network Appliance* 2,973 350
Nortel Networks # 53,643 3,970
Qualcomm* 6,489 2,351
Scientific-Atlanta 3,091 180
Tellabs* # 15,825 1,027
--------
17,858
--------
COMPUTER COMMUNICATIONS EQUIPMENT -- 0.2%
Adaptec* # 4,176 225
3Com* # 14,454 575
--------
800
--------
COMPUTER HARDWARE & EQUIPMENT -- 7.9%
Apple Computer* 6,502 636
Cisco Systems* 131,401 11,719
Compaq Computer 68,710 1,679
Dell Computer* # 102,697 4,416
EMC* # 41,374 3,457
Hewlett Packard 40,943 3,884
International Business
Machines 73,120 7,536
Seagate Technology* 9,001 333
Silicon Graphics* 7,630 72
Sun Microsystems* # 31,278 4,137
Unisys* 12,368 356
--------
38,225
--------
COMPUTER SERVICES -- 4.7%
Ceridian* 5,850 127
Microsoft* # 206,288 18,782
Oracle* 58,181 3,945
--------
22,854
--------
COMPUTERS -- 0.3%
Comverse Technology** # 2,997 362
Gateway* # 12,659 967
--------
1,329
--------
See Accompanying Notes
15
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
CONTAINERS & PACKAGING -- 0.1%
Ball 1,229 $ 46
Crown Cork & Seal 4,946 101
Newell Rubbermaid 11,394 374
Owens-Illinois* 6,298 151
--------
672
--------
DRUGS & HEALTH CARE -- 8.7%
Abbott Laboratories # 61,490 2,337
Alza* 4,107 177
American Home Products 52,812 2,746
Amgen* 41,224 1,878
Bristol-Myers Squibb 80,273 5,865
Johnson & Johnson 54,339 5,638
Lilly (Eli) 44,170 3,169
Merck 94,801 7,442
Millipore 1,819 60
Pfizer 156,619 5,668
Pharmacia & Upjohn, ADR 20,479 1,120
Schering-Plough 59,347 3,034
Warner-Lambert 34,546 3,098
Watson Pharmaceuticals* 3,872 144
--------
42,376
--------
ELECTRICAL SERVICES -- 1.6%
AES* # 7,960 461
Ameren 5,546 192
American Electric Power 7,816 245
Carolina Power & Light 6,450 194
Central & South West 8,595 172
Cinergy 6,422 163
CMS Energy 4,772 159
Consolidated Edison # 8,933 308
Constellation Energy Group 6,044 178
Dominion Resources 7,760 352
DTE Energy 5,862 194
Duke Energy 14,748 748
Edison International 14,034 372
First Energy 9,456 220
Florida Progress 3,969 170
FPL Group 7,245 317
GPU 5,070 162
New Century Energies 4,658 146
Niagara Mohawk Holdings* 7,573 114
Northern States Power 6,233 127
Pinnacle West Capital 3,427 114
PP & L Resources 6,374 147
Public Service Enterprise 8,861 310
Reliant Energy 11,956 297
Scottish Power, ADR 6,970 244
Sempra Energy* # 9,715 180
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
ELECTRICAL SERVICES -- CONTINUED
Southern 27,612 $ 645
Teledyne Technologies* 1,100 10
Texas Utilities 11,172 400
Unicom # 8,784 281
--------
7,622
--------
ENTERTAINMENT -- 0.5%
Mirage Resorts* 8,042 103
Walt Disney 83,356 2,324
--------
2,427
--------
ENVIRONMENTAL SERVICES -- 0.1%
Allied Waste Industries* 7,619 62
Laidlaw 13,344 82
Waste Management 25,029 407
--------
551
--------
FINANCIAL SERVICES -- 5.0%
American Express 18,160 2,748
Associates First Capital, Cl A 29,428 978
Bear Stearns 4,940 202
Capital One 7,982 372
Charles Schwab 33,053 1,254
Citigroup 136,504 7,354
Countrywide Credit 4,564 128
Equifax 5,810 144
Fannie Mae 41,429 2,760
Franklin Resources 10,191 320
Freddie Mac 28,098 1,387
Household International 19,345 765
J.P. Morgan 7,095 933
Lehman Brothers 4,844 370
Merrill Lynch 14,937 1,204
Morgan Stanley, Dean Witter,
Discover 23,061 2,782
Painewebber Group 5,884 231
SLM Holding 6,504 322
T. Rowe Price 5,122 184
--------
24,438
--------
FOOD & BEVERAGE -- 3.8%
Adolph Coors, Cl B 1,488 74
Anheuser Busch 18,896 1,414
Archer-Daniels-Midland 24,959 310
Bestfoods # 11,274 618
Brown-Forman, Cl B 2,769 174
Coca Cola 99,801 6,718
Coca-Cola Enterprises 17,177 364
Conagra 19,733 476
General Mills 12,354 466
H.J. Heinz 14,486 607
See Accompanying Notes
16
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
FOOD & BEVERAGE -- CONTINUED
Hershey Foods # 5,639 $ 277
Kellogg 16,377 555
Nabisco Group Holdings 13,182 152
PepsiCo 59,105 2,043
Quaker Oats 5,408 353
Ralston Purina 13,072 388
Sara Lee 36,517 886
Seagram 17,480 761
Unilever NV* # 23,103 1,258
Wm. Wrigley, Jr. 4,698 391
--------
18,285
--------
FURNITURE/HOME APPLIANCE -- 0.0%
National Service Industries 1,635 48
--------
GAMES, TOYS & CHILDREN'S VEHICLES -- 0.1%
Hasbro 7,869 170
Mattel 16,985 243
--------
413
--------
GAS & NATURAL GAS -- 0.5%
Columbia Gas Systems 3,315 208
Consolidated Natural Gas 3,877 249
Eastern Enterprises 1,085 62
El Paso Energy 4,580 176
Enron 28,852 1,098
Nicor 1,906 66
ONEOK 1,278 34
Peoples Energy # 1,435 53
Williams 17,550 592
--------
2,538
--------
GENERAL UTILITIES -- 0.1%
PECO Energy 7,542 248
--------
GLASS PRODUCTS -- 0.2%
Corning Glass 9,891 927
--------
GOLD MINING -- 0.0%
Newmont Mining 6,771 160
--------
HANDTOOLS & GENERAL HARDWARE -- 0.1%
Fortune Brands 6,725 230
Snap-On Tools 2,651 80
Stanley Works 3,593 112
--------
422
--------
HEAVY CONSTRUCTION -- 0.0%
Foster Wheeler 1,577 16
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
HOTELS & LODGING -- 0.1%
Harrah's Entertainment* 5,187 $ 143
Hilton Hotels 10,306 104
Marriott International, Cl A* 10,055 327
--------
574
--------
HOUSEHOLD FURNITURE & FIXTURES -- 0.0%
Leggett & Platt 8,390 180
--------
HOUSEHOLD PRODUCTS -- 1.9%
Clorox # 9,539 425
Colgate Palmolive 23,563 1,293
Danaher 5,746 282
Maytag 3,527 168
Procter & Gamble 53,696 5,799
Solectron* 10,906 898
Whirlpool 3,047 186
--------
9,051
--------
INFORMATION RETRIEVAL SERVICES -- 1.3%
America Online* # 89,574 6,511
--------
INSURANCE -- 3.2%
Aetna 5,698 311
Aflac 10,745 514
Allstate 32,267 845
American General 10,069 738
American International Group 62,574 6,461
Aon 10,354 370
Chubb 7,121 381
Cigna 8,048 662
Cincinnati Financial 6,672 224
Conseco # 13,219 268
Hartford Financial 9,135 426
Humana* 6,775 47
Jefferson-Pilot # 4,260 289
Lincoln National 8,035 335
Loews 4,348 278
Marsh & McLennan 10,673 839
MBIA 4,039 202
MGIC Investment 4,411 249
Progressive 2,949 238
Providian Financial 5,732 454
Safeco 5,304 126
St. Paul 9,161 277
Torchmark # 5,378 171
United Healthcare 7,006 364
Unumprovident 9,651 314
--------
15,383
--------
See Accompanying Notes
17
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
LEASING & RENTING -- 0.0%
Ryder System 2,776 $ 63
--------
LEISURE & RECREATIONAL PRODUCTS -- 0.0%
Brunswick 3,719 81
--------
MACHINERY -- 0.9%
Applied Materials* 15,175 1,479
Baker Hughes 13,291 336
Black & Decker 3,518 158
Briggs & Stratton 941 50
Caterpillar # 14,371 666
Crane 2,735 50
Cummins Engine 1,694 69
Deere # 9,445 406
Dover 8,423 365
Ingersoll Rand 6,673 323
Milacron 1,433 21
NACCO Industries, Cl A 316 15
Pall 5,016 118
Parker-Hannifin 4,386 206
Timken 2,503 48
--------
4,310
--------
MANUFACTURED HOUSING -- 0.0%
Fleetwood Enterprises 1,329 28
--------
MEASURING DEVICES -- 0.3%
Honeywell 5,153 577
KLA-Tencor* 3,563 301
Mallinckrodt 2,869 95
PE - PE Biosystems 4,123 337
Tektronix 1,893 64
Thermo Electron* 6,382 96
--------
1,470
--------
MEDICAL & MEDICAL SERVICES -- 1.2%
Allergan 2,667 262
Bausch & Lomb 2,320 127
Baxter International 11,767 795
Becton Dickinson # 10,117 276
Biomet 4,544 144
Boston Scientific* 16,716 353
C.R. Bard 2,071 112
Columbia/HCA Healthcare 22,805 621
Guidant 12,212 611
Healthsouth* 16,771 95
Manor Care* 4,320 87
Medtronic # 47,432 1,844
St. Jude Medical 3,422 91
Tenet Healthcare* # 12,551 280
Wellpoint Health Networks* 2,660 153
--------
5,851
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
METAL/FABRICATE HARDWARE -- 0.0%
Reynolds Metals 2,542 $ 159
--------
METALS & MINING -- 0.3%
Alcan Aluminum 9,134 311
Alcoa # 14,819 971
Freeport-McMoran Copper
& Gold, Cl B 6,607 104
Phelps Dodge 3,456 180
USX-U.S. Steel Group # 3,572 90
--------
1,656
--------
MISCELLANEOUS BUSINESS SERVICES -- 0.1%
Teradyne* 7,350 320
--------
MISCELLANEOUS CONSUMER SERVICES -- 0.0%
Service International 10,996 83
Water Pik Technologies* 385 3
--------
86
--------
MISCELLANEOUS MANUFACTURING -- 1.1%
Illinois Tool Works 10,129 656
Jostens 1,324 24
Minnesota Mining &
Manufacturing 16,279 1,556
Textron 6,069 431
Tyco International # 67,632 2,710
--------
5,377
--------
OFFICE & BUSINESS EQUIPMENT -- 0.3%
Pitney Bowes 10,814 518
Xerox 26,800 725
--------
1,243
--------
OFFICE FURNITURE & FIXTURES -- 0.1%
Ikon Office Solutions 6,028 40
Johnson Controls 3,448 188
Lexmark International, Cl A* 5,206 432
--------
660
--------
OIL & GAS EXTRACTION -- 0.1%
Helmerich & Payne 2,000 45
USX Marathon 12,478 330
--------
375
--------
PAPER & FOREST PRODUCTS -- 0.9%
Bemis 2,115 67
Boise Cascade 2,307 80
Champion International 3,879 215
Fort James 8,932 257
Georgia Pacific 6,932 276
International Paper 16,716 872
Kimberly-Clark 21,534 1,375
See Accompanying Notes
18
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
PAPER & FOREST PRODUCTS -- CONTINUED
Louisiana-Pacific 4,340 $ 53
Mead 4,137 148
Pactiv* 6,888 71
Potlatch 1,169 47
Temple-Inland 2,257 129
Westvaco 4,049 122
Weyerhaeuser 8,131 498
Willamette Industries 4,509 187
--------
4,397
--------
PETROLEUM & FUEL PRODUCTS -- 0.7%
Amerada Hess 3,660 212
Anadarko Petroleum 5,150 155
Apache 4,602 165
Burlington Resources # 7,174 241
Kerr-McGee 3,493 200
Occidental Petroleum 14,088 309
Phillips Petroleum 10,237 489
Rowan Companies* 3,363 58
Schlumberger 22,134 1,329
Union Pacific Resources # 10,180 133
--------
3,291
--------
PETROLEUM REFINING -- 4.7%
Ashland 2,917 98
Atlantic Richfield 13,028 1,256
Chevron 26,514 2,348
Coastal 8,626 304
Conoco 25,348 664
Exxon 98,126 7,783
Mobil 31,651 3,302
Royal Dutch Petroleum 86,668 5,027
Sunoco 3,658 94
Texaco 22,340 1,361
Tosco 6,158 167
Unocal 9,796 325
--------
22,729
--------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES -- 0.2%
Eastman Kodak 12,792 792
Lanier Worldwide Inc* 3,223 13
Polaroid 1,794 35
--------
840
--------
PRECIOUS METALS -- 0.1%
Barrick Gold # 15,762 284
Homestake Mining 10,517 87
Placer Dome 13,158 150
--------
521
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
PRINTING & PUBLISHING -- 1.5%
American Greetings, Cl A 2,724 $ 64
Dow Jones 3,672 223
Gannett 11,306 809
Knight-Ridder 3,275 179
McGraw-Hill 7,954 451
Meredith 2,097 79
New York Times, Cl A 7,037 270
R.R. Donnelley & Sons 5,160 124
Time Warner # 52,279 3,225
Times Mirror, Cl A 2,734 177
Tribune 9,580 460
Viacom, Cl B* 28,158 1,401
--------
7,462
--------
PROFESSIONAL SERVICES -- 0.4%
Dun & Bradstreet 6,508 176
H & R Block # 3,946 170
Halliburton 17,834 690
IMS Health 12,644 298
Paychex 9,941 397
Perkinelmer 1,853 76
--------
1,807
--------
RAILROADS -- 0.3%
Burlington Northern Santa Fe 18,790 545
Kansas City Southern 4,466 266
Norfolk Southern 15,379 329
Union Pacific 10,016 471
--------
1,611
--------
REAL ESTATE -- 0.0%
Kaufman & Broad Home # 1,937 43
--------
RESTAURANTS -- 0.6%
Darden Restaurants 5,340 95
McDonald's 54,754 2,464
Tricon Global Restaurants* 6,206 258
Wendy's International 4,909 108
--------
2,925
--------
RETAIL -- 6.1%
Alberto-Culver, Cl B 2,212 58
Albertson's 16,990 543
Autozone* 6,016 166
Bed Bath & Beyond* 5,645 176
Best Buy* 8,237 515
Circuit City 8,121 394
Consolidated* 4,451 70
Costco Wholesale* # 8,926 818
CVS 15,833 628
Dayton Hudson 17,869 1,261
See Accompanying Notes
19
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
RETAIL -- CONTINUED
Dillards, Cl A 4,322 $ 82
Dollar General 9,080 222
Federated Department Stores* 8,430 397
Gap 34,658 1,404
Great Atlantic & Pacific Tea 1,549 39
Harcourt General 2,875 95
Home Depot 59,941 4,739
J.C. Penney 10,652 238
Kmart* # 19,954 198
Kohls* 6,580 475
Kroger* 33,525 715
Limited 8,653 367
Longs Drug Stores 1,587 40
Lowe's 15,417 768
May Department Stores 13,505 454
Nordstrom 5,670 158
Office Depot* 15,149 169
Pep Boys 2,126 21
Rite Aid 10,465 79
Safeway* # 20,625 761
Sears Roebuck # 15,375 526
Staples* 18,787 441
Tandy 7,810 598
TJX Companies # 12,839 336
Toys "R" Us* 10,007 175
Wal-Mart # 179,866 10,365
Walgreen # 40,559 1,181
Winn Dixie Stores 6,007 157
--------
29,829
--------
RUBBER & PLASTIC -- 0.1%
B.F. Goodrich 4,438 100
Cooper 3,066 46
Goodyear 6,316 213
Sealed Air* 3,380 159
Tupperware 2,329 41
--------
559
--------
RUBBER & PLASTIC FOOTWEAR -- 0.1%
Nike # 11,368 523
Reebok International 2,270 20
--------
543
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 3.3%
Advanced Micro Devices* 5,951 168
Analog Devices* 7,351 422
Intel 133,702 10,253
LSI Logic* 5,957 360
Micron Technology # 10,120 679
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
SEMI-CONDUCTORS/INSTRUMENTS -- CONTINUED
National Semiconductor* 6,789 $ 289
Texas Instruments 31,754 3,050
Xilinx* 6,736 603
--------
15,824
--------
SINGLE FAMILY HOUSING CONSTRUCTION -- 0.0%
Pulte 1,747 35
--------
SPECIALTY CHEMICALS -- 0.0%
Sigma Aldrich 4,077 117
--------
SPECIALTY MACHINERY -- 3.9%
Cooper Industries 3,819 164
Emerson Electric 17,562 1,001
General Electric 132,579 17,235
Rockwell International 7,733 384
Thomas & Betts 2,301 94
--------
18,878
--------
STEEL & STEEL WORKS -- 0.1%
Allegheny Technologies* 3,850 97
Bethlehem Steel* 5,288 33
Engelhard 5,089 86
Inco 7,759 143
Nucor 3,529 178
Worthington Industries 3,712 59
--------
596
--------
TELEPHONE & TELECOMMUNICATION -- 8.9%
Alltel 12,337 1,067
AT&T 129,164 7,217
Bell Atlantic # 62,758 3,973
BellSouth 76,204 3,520
Centurytel 5,639 259
Global Crossing* # 31,051 1,355
GTE 39,647 2,894
MCI WorldCom* # 75,707 6,260
Motorola # 24,541 2,804
Nextel, Cl A* # 13,403 1,329
SBC Communications 137,990 7,167
Sprint 35,063 2,432
Sprint (PCS )* # 17,776 1,631
US West 20,397 1,266
--------
43,174
--------
TESTING LABORATORIES -- 0.0%
Quintiles Transnational* 4,957 109
--------
TOBACCO -- 0.6%
Philip Morris 96,604 2,542
UST 7,037 187
--------
2,729
--------
See Accompanying Notes
20
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA EQUITY INDEX FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number of Value
Shares/Par (000) (000)
---------------- --------
COMMON STOCK -- CONTINUED
TRANSPORTATION SERVICES -- 0.1%
CSX # 8,798 $ 313
--------
TRAVEL -- 0.2%
Carnival, Cl A 24,791 1,094
--------
WHOLESALE -- 0.3%
Cardinal Health 11,012 576
McKesson HBOC 11,370 266
Supervalu 5,613 109
Sysco 13,377 509
W.W. Grainger 3,773 178
--------
1,638
--------
TOTAL COMMON STOCK
(Cost $415,020) 464,807
--------
REGISTERED INVESTMENT
COMPANIES -- 1.9%
S&P Depository Receipt # 65,000 9,053
--------
TOTAL REGISTERED INVESTMENT COMPANIES
(Cost $8,702) 9,053
--------
CASH EQUIVALENT -- 2.2%
Goldman Sachs Financial Square
Premium Money Market
Fund 10,453 10,453
--------
TOTAL CASH EQUIVALENT
(Cost $10,453) 10,453
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $434,175) $484,313
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.3% 1,683
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
39,854,053 outstanding shares
of beneficial interest $429,095
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
498,626 outstanding shares
of beneficial interest 5,478
Accumulated net realized loss on investments (84)
Net unrealized appreciation on investments 50,138
Net unrealized appreciation on futures 664
Undistributed net investment income 705
--------
TOTAL NET ASSETS -- 100.0% $485,996
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $12.04
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $12.01
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A
($12.01 / 96.25%) $12.48
========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
See Accompanying Notes
21
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA EQUITY INDEX FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Month
Period Ended
November 30, 1999 For the Period
(Unaudited) Ended May 31, 1999
---------------------------- --------------------------
Class I Class A Class I2 Class A2
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.32 $ 11.29 $ 10.00 $ 9.09
-------- ------- -------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.06 0.04 0.11 0.07
Net gain on securities (realized and unrealized) 0.73 0.74 1.29 2.18
-------- -------- -------- ------
Total from investment operations 0.79 0.78 1.40 2.25
-------- ------- -------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.07) (0.06) (0.08) (0.05)
-------- ------- -------- ------
Total distributions (0.07) (0.06) (0.08) (0.05)
-------- ------- -------- ------
Net asset value, end of period $ 12.04 $ 12.01 $ 11.32 $11.29
======== ======= ======== ======
TOTAL RETURN 7.66%4 7.47%1,4 14.16%4 24.83%1,4
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $480,008 $5,988 $253,854 $3,892
Ratio of expenses to average net assets 0.35%3 0.64%3 0.20%3 0.36%3
Ratio of net investment income to average net assets 1.07%3 0.78%3 1.38%3 1.22%36
Ratio of expenses to average net assets before fee waivers 0.52%3 0.82%3 0.55%3 0.71%36
Ratio of net investment income to average net assets
before fee waivers 0.89%3 0.61%3 1.03%3 0.87%3
Portfolio turnover rate 7% 7% 9% 9%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I AND CLASS A COMMENCED OPERATIONS ON JULY 10, 1998 AND OCTOBER 15,
1998, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
22
<PAGE>
{GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERNATIONAL EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 91.8%
AUSTRALIA -- 0.8%
National Australia Bank# 91,798 $ 1,324
National Australia Bank ADR 17,300 1,253
--------
2,577
--------
AUSTRIA -- 0.4%
Mayr Melnhof Karton 32,442 1,355
--------
CANADA -- 1.0%
BCE 46,490 3,144
--------
FINLAND -- 2.8%
Nokia ADR 36,043 4,981
Sonera Oyj 67,396 2,788
UPM-Kymmene 32,365 1,084
--------
8,853
--------
FRANCE -- 10.5%
Altran Technologies 9,667 4,608
Axa 29,402 3,972
Castorama Dubois 14,462 3,764
Compagnie de Saint Gobain 7,017 1,196
Equant*# 14,773 1,431
France Telecom 30,764 3,572
L'Oreal 2,070 1,365
Rhone-Poulenc 34,219 2,123
STMicroelectronics 30,755 4,188
Thomson Multimedia* 6,560 285
Total Fina ADR 8,458 559
Total Fina, Cl B 29,759 3,966
Vivendi 23,621 1,894
--------
32,923
--------
GERMANY -- 7.9%
Allianz 7,446 2,184
Deutsche Bank 50,956 3,364
Deutsche Telekom 30,786 1,766
Epcos*# 32,395 1,993
HypoVereinsbank 27,550 1,712
Linde 40,745 2,039
Mannesmann# 27,213 5,666
Siemens# 47,901 4,837
Viag 85,455 1,414
--------
24,975
--------
HONG KONG -- 5.6%
China Telecom (Hong Kong)* 923,776 4,960
HSBC Holdings 175,280 2,325
Hutchison Whampoa Limited 224,003 2,755
Johnson Electric Holdings 575,591 4,113
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
HONG KONG -- CONTINUED
Li & Fung 841,069 $ 1,933
Swire Pacific, Cl A 280,652 1,612
--------
17,698
--------
IRELAND -- 0.6%
Bank of Ireland 219,172 1,807
--------
ISRAEL -- 0.4%
BATM Advanced Communications 19,482 1,276
--------
ITALY -- 2.5%
Assicurazioni Generali 33,862 977
Bulgari 203,815 1,573
Telecom Italia 92,786 1,024
Telecom Italia ADR 19,700 2,125
Telecom Italia Mobile# 281,583 2,216
--------
7,915
--------
JAPAN -- 25.8%
Bank of Tokyo-Mitsubishi 62,533 905
Benesse 19,669 4,722
Fancl 3,114 1,105
Fanuc 58,645 4,889
Fujitsu# 71,631 2,543
Hikari Tsushin 1,942 3,047
Honda Motor 25,532 1,052
Internet Initiative Japan ADR* 9,038 863
Itochu 449,007 2,677
Marubeni 622,428 2,423
NEC# 113,788 2,661
Nihon Unisys 60,009 2,301
Nikko Securities# 162,807 2,028
Nintendo 9,443 1,575
Nippon Telegraph & Telephone 56 1,005
NTT Mobile Communications
Network 235 8,250
Sanwa Bank# 86,468 1,051
Seven-Eleven 34,595 5,632
SMC# 13,420 2,372
Softbank 8,090 5,847
Sony# 34,725 6,436
Sumitomo Bank 75,658 1,161
Takeda Chemical Industries 73,817 4,358
Takefuji 9,977 1,429
Tokyo Electron 28,699 2,983
Yahoo Japan* 11 7,767
--------
81,082
--------
See Accompanying Notes
23
<PAGE>
{GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERNATIONAL EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
MEXICO -- 0.8%
Telefonos de Mexico ADR 28,541 $ 2,642
--------
NETHERLANDS -- 3.7%
Heineken 29,457 1,426
ING Groep 50,987 2,873
Koninklijke Ahold 13,260 423
Koninklijke Ahold ADR 29,850 955
Royal Dutch Petroleum 41,192 2,428
Royal Dutch Petroleum,
NY Shares 24,400 1,415
Wolters Kluwer 66,088 1,997
--------
11,517
--------
POLAND -- 0.1%
Polski Koncern Nafto GDR* 21,399 221
--------
SINGAPORE -- 3.1%
DBS Group Holdings 281,783 3,655
Natsteel Electronics 354,812 1,468
Singapore Airlines 323,136 3,269
Singapore Press Holdings 71,930 1,348
--------
9,740
--------
SOUTH KOREA -- 1.0%
Pohang Iron & Steel ADR 90,394 3,249
--------
SPAIN -- 1.1%
Telefonica* 60,074 1,253
Telefonica - New 1,184 20
Telefonica ADR 30,704 1,907
Terra Networks* 6,482 224
--------
3,404
--------
SWEDEN -- 3.1%
LM Ericsson ADR 84,489 4,071
Hennes & Mauritz, Series B 97,650 3,101
Pharmacia & Upjohn 21,153 1,157
Svenska Cellulosa, Series A 33,453 925
Svenska Cellulosa, Series B 13,307 370
--------
9,624
--------
SWITZERLAND -- 6.1%
Adecco 2,174 1,394
Credit Suisse Group 12,486 2,341
Nestle 1,100 1,984
Novartis 2,735 4,273
Roche Holding 302 3,655
Swiss Re 1,279 2,616
UBS, Registered 10,765 2,951
--------
19,214
--------
Number of Value
Shares/Par (000) (000)
--------------- --------
COMMON STOCK -- CONTINUED
TAIWAN -- 1.0%
Taiwan Semiconductor ADR* 83,836 $ 3,002
--------
UNITED KINGDOM -- 13.5%
Allied Zurich 226,290 2,745
Bass 114,295 1,291
BOC Group 134,231 2,773
BP Amoco 52,505 535
BP Amoco ADR 50,714 3,090
British Telecom 133,320 2,681
Colt Telecom Group* 46,780 1,769
Compass Group 169,884 2,063
Energis* 48,311 1,968
General Electric 247,370 3,805
Glaxo Wellcome 30 1
Invensys 510,052 2,380
Logica 135,099 3,271
National Grid Holdings 355,798 2,738
Pearson 168,731 4,039
QXL* 181,800 1,264
SmithKline Beecham 15,813 212
SmithKline Beecham ADR 16,600 1,104
Standard Chartered 94,755 1,289
Thus* 257,586 1,614
WPP Group 129,815 1,909
--------
42,541
--------
UNITED STATES -- 0.0%
OpenTV* 891 72
--------
TOTAL COMMON STOCK
(Cost $209,411) 288,831
--------
CASH EQUIVALENT -- 3.4%
Goldman Sachs Financial Square
Premium Money Market
Fund 10,712 10,712
--------
TOTAL CASH EQUIVALENT
(Cost $10,712) 10,712
--------
COMMERCIAL PAPER -- 4.1%
General Electric
5.480% 12/02/99 9,500 9,499
5.570% 12/16/99 3,500 3,492
--------
TOTAL COMMERCIAL PAPER
(Cost $12,991) 12,991
--------
TOTAL INVESTMENTS -- 99.3%
(Cost $233,114) $312,534
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.7% 2,146
--------
See Accompanying Notes
24
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERNATIONAL EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Value
(000)
--------
NET ASSETS:
Portfolio shares of Class I
(unlimited authorization -- no par
value) based on 21,473,469 outstanding
shares of beneficial interest $227,158
Portfolio shares of Class A
(unlimited authorization -- no par
value) based on 146,387 outstanding
shares of beneficial interest 1,620
Portfolio shares of Class B
(unlimited authorization -- no par
value) based on 7,825 outstanding
shares of beneficial interest 91
Accumulated net realized gain on
investments 4,978
Net unrealized appreciation on investments 77,964
Net unrealized appreciation on futures 1,456
Net unrealized appreciation of foreign
currency and translation of other assets
and liabilities in foreign currency investments 1,393
Undistributed net investment income 20
--------
TOTAL NET ASSETS -- 100.0% $314,680
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $14.55
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $14.47
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($14.47 / 94.5%) $15.31
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE-- CLASS B $14.38
========
- ------------------------------------------------
* NON INCOME PRODUCING SECURITY
# SECURITY FULLY OR PARTIALLY ON LOAN
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
GDR -- GLOBAL DEPOSITORY RECEIPT
At November 30, 1999, sector diversification of the Portfolio was as follows:
% of
Sector Diversification Net Assets Value
- ---------------------- ---------- ---------
COMMON STOCK
Banking 8.9% $ 28,013
Electronics 8.0% 25,298
Telephone 5.7% 17,995
Pharmaceuticals 5.4% 16,882
Internet Services 5.1% 15,965
Telecommunication
Equipment 5.1% 15,904
Consumer Goods 4.9% 15,440
Cellular
Telecommunications 4.9% 15,426
Manufacturing 4.1% 12,997
Insurance 4.0% 12,493
Oil and Gas 3.9% 12,215
Telecommunications 3.6% 11,283
Food Product Retailer 3.5% 11,057
Machinery 2.6% 8,038
Computers 2.3% 7,244
Distribution 2.2% 7,034
Engineering Services 2.1% 6,647
Business Services 2.1% 6,631
Manufacturing Products 1.6% 4,960
Multimedia 1.3% 4,039
Automotive 1.2% 3,789
Paper Products 1.2% 3,734
Financial Services 1.1% 3,456
Publishing 1.1% 3,345
Airlines 1.0% 3,269
Steel 1.0% 3,249
Chemicals 0.9% 2,773
Beverages 0.9% 2,718
Computer Software 0.8% 2,373
Multi-Industry 0.6% 1,894
Human Resources 0.4% 1,394
Networking Products 0.3% 1,276
------ --------
TOTAL COMMON STOCK 91.8% 288,831
TOTALCOMMERCIAL PAPER 4.1% 12,991
CASH EQUIVALENT 3.4% 10,712
------ --------
TOTAL INVESTMENTS 99.3% 312,534
OTHER ASSETS AND
LIABILITIES, NET 0.7% 2,146
------ --------
NET ASSETS 100.0% $314,680
====== ========
See Accompanying Notes
25
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA INTERNATIONAL EQUITY FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year For the Period
(Unaudited) Ended May 31, 1999 Ended May 31, 1998
----------------------------- ----------------------------- ---------------------------
Class I3 Class A3 Class B3 Class I Class A Class B Class I2 lass A2 Class B2
-------- -------- --------- -------- ------- -------- --------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 10.91 $ 10.87 $ 10.83 $ 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) (0.01) (0.01) (0.07) 0.08 0.04 0.05
Net gain on securities (realized
and unrealized) 3.64 3.62 3.61 0.11 0.10 0.08 0.79 0.79 1.48
-------- ------- --------- -------- ------ ------ -------- ------ ------
Total from investment
operations 3.64 3.60 3.55 0.10 0.09 0.01 0.87 0.83 1.53
-------- ------- --------- -------- ------ ------ -------- ------ ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.00) (0.00) (0.00) (0.05) (0.04) (0.01) (0.01) (0.01) (0.00)
-------- ------- --------- -------- ------ ------ -------- ------ ------
Total distributions (0.00) (0.00) (0.00) (0.05) (0.04) (0.01) (0.01) (0.01) (0.00)
-------- ------- --------- -------- ------ ------ -------- ------ ------
Net asset value, end of
period $ 14.55 $ 14.47 $ 14.38 $ 10.91 $10.87 $10.83 $ 10.86 $10.82 $10.83
-------- ------- --------- -------- ------ ------ -------- ------ ------
TOTAL RETURN 33.36%5 33.12%1,5 32.78%1,5 0.95% 0.84%1 0.10%1 8.76%4 8.28%1,5 16.45%1,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $312,437 $ 2,139 $ 104 $199,205 $1,127 $ 42 $135,942 $ 276 $ 1
Ratio of expenses to average
net assets 1.41%4 1.65%4 2.37%4 1.43% 1.68% 2.43% 1.09%4 1.39%4 2.08%4
Ratio of net investment
income/(loss) to average
net assets (0.00)%4 (0.27)%4 (1.04)%4 0.12% (0.04)% (0.80)% 1.19%4 1.49%4 0.59%4
Ratio of expenses to average
net assets before fee waivers 1.41%4 1.65%4 2.41%4 1.43% 1.68% 2.43% 1.24%4 1.47%4 2.14%4
Ratio of net investment income/
(loss) to average net assets
before fee waivers (0.00)%4 (0.27)%4 (1.04)%4 0.12% (0.04)% (0.80)% 1.04%4 1.41%4 0.53%4
Portfolio turnover rate 67% 67% 67% 78% 78% 78% 28% 28% 28%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON AUGUST 1, 1997, AUGUST 1,
1997, AND JANUARY 6, 1998, RESPECTIVELY.
3 CALCULATED BASED UPON AVERAGE SHARES OUTSTANDING.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
26
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP GROWTH FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -----
COMMON STOCK -- 86.9%
AIR TRANSPORTATION -- 0.7%
Atlas Air* 33,300 $ 839
--------
AUTO -- 1.1%
Monaco Coach* 61,200 1,316
--------
BANKS -- 2.4%
Cullen/Frost Bankers 29,800 849
Imperial Bancorp* 44,900 1,078
Republic Security Financial 117,350 942
--------
2,869
--------
BROADCASTING, NEWSPAPERS & ADVERTISING-- 3.6%
Ancor Communications* # 11,100 673
Citadel Communications* 18,000 901
Cumulus Media* 40,000 1,600
Spanish Broadcasting Systems,
Cl A* # 34,900 1,108
--------
4,282
--------
BUILDING & BUILDING SUPPLIES -- 0.9%
Trex* 41,200 1,061
--------
BUSINESS SERVICES -- 2.0%
FYI* 18,800 602
National Information
Consortium* # 36,200 955
Online Resources &
Communications* 64,900 795
--------
2,352
--------
CHEMICALS -- 0.4%
Church & Dwight 15,050 421
--------
COMMUNICATIONS EQUIPMENT -- 7.4%
Antec* # 22,700 1,271
C-COR Electronics 15,100 771
Commscope* 61,200 2,578
Mercury Computer Systems* 26,300 1,501
Optical Coating Laboratory 5,200 1,023
Sawtek* 33,550 1,531
--------
8,675
--------
COMPUTER COMMUNICATIONS EQUIPMENT -- 6.3%
Act Manufacturing* 41,500 1,268
Clarify* 17,400 1,622
Digex* 7,500 251
MicroStrategy* # 5,100 625
Optimal Robotics* 42,300 1,375
Proxim* 11,200 627
Visual Networks* 28,900 1,705
--------
7,473
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
COMPUTER SERVICES -- 11.2%
Allaire* 6,500 $ 987
Business Objects* 12,800 1,133
Egain Communication* 13,400 563
Mercury Interactive* 15,900 1,322
Micromuse* 13,600 1,555
National Computer Systems 33,600 1,289
NetObjects* 53,900 731
Novadigm* 62,500 1,086
Onyx Software* 32,400 1,045
Remedy* 22,000 767
Sapiens International* 40,000 555
Sonicwall* # 15,870 543
Symantec* 35,200 1,643
--------
13,219
--------
COMPUTERS -- 0.8%
Advanced Digital Information* 21,500 966
--------
DRUGS & HEALTH CARE -- 1.4%
ChiRex* 24,400 848
Titan Pharmaceuticals* # 51,800 745
--------
1,593
--------
ELECTRICAL TECHNOLOGY -- 0.9%
SBS Technologies* 33,100 1,117
--------
ELECTRONICS -- 5.9%
CTS 33,500 2,686
Dii Group* 32,300 2,039
Gentex* 63,400 1,185
Titan* 37,900 1,026
--------
6,936
--------
ENTERTAINMENT -- 3.1%
3DO Company* 62,480 592
Anchor Gaming* 10,600 584
Macrovision* 22,800 1,456
T-HQ* # 20,100 1,080
--------
3,712
--------
FINANCIAL SERVICES -- 0.8%
Metris # 31,400 993
--------
GAS & NATURAL GAS -- 1.1%
Nicor 20,900 725
Southwest Gas 23,800 558
--------
1,283
--------
HOTELS & LODGING -- 0.7%
Station Casinos* 33,000 792
--------
See Accompanying Notes
27
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP GROWTH FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
INFORMATION RETRIEVAL SERVICES -- 1.2%
Digital River* 24,500 $ 747
QRS* 12,000 698
--------
1,445
--------
INSURANCE - LIFE -- 1.3%
Annuity & Life 36,000 1,026
Scottish Annuity & Life 57,800 491
--------
1,517
--------
MEDICAL & MEDICAL SERVICES -- 6.0%
Arthrocare* 7,850 475
Biomatrix* # 24,200 569
Datascope* 52,300 1,940
Enzon* 14,450 488
Hooper Holmes 66,850 1,579
PolyMedica* 57,800 1,012
Priority Healthcare, Cl B* 20,700 512
Theragenics* 50,700 485
--------
7,060
--------
PETROLEUM & FUEL PRODUCTS -- 1.0%
Cal Dive International* 12,100 440
Forest Oil* 33,000 377
Louis Dreyfus Natural Gas* 19,850 357
--------
1,174
--------
PETROLEUM REFINING -- 0.3%
Tesoro Petroleum* 24,850 298
--------
PHARMACEUTICALS -- 1.7%
King Pharmaceuticals* # 42,400 1,956
--------
PRINTING & PUBLISHING -- 0.8%
Valassis Communications* 23,550 927
--------
PROFESSIONAL SERVICES -- 2.0%
Affymetrix* # 3,300 323
Corporate Executive Board* 14,700 684
Diamond Technology Partners* 16,300 856
Millennium Pharmaceutical* 5,200 506
--------
2,369
--------
RETAIL -- 5.2%
BJ's Wholesale Club* 32,000 1,196
Cheap Tickets* 32,400 541
Jack in the Box* 56,400 1,188
Rex Stores* 45,450 1,696
The Children's Place
Retail Stores* # 25,700 634
Too* 49,400 914
--------
6,169
--------
Number of Value
Shares/Par (000) (000)
---------------- --------
COMMON STOCK -- CONTINUED
SEMI-CONDUCTORS/INSTRUMENTS -- 10.5%
ASM International N.V.* # 84,300 $ 1,370
Burr-Brown* 17,100 758
Credence Systems* 15,900 921
Cymer* # 26,500 1,060
Exar* 27,400 1,332
Fairchild Semiconductor
Int'l, Cl A* 21,800 610
Helix Technology 20,614 835
Integrated Device Technology* 21,200 500
Netsilicon* 92,000 1,219
Next Level Communications* # 1,050 68
PRI Automation, Cl A* # 13,700 649
Silicon Storage Technology* 34,450 913
Transwitch* 16,200 761
Zoran* # 33,700 1,344
--------
12,340
--------
TELEPHONE & TELECOMMUNICATION -- 5.0%
Adelphia Business Solutions* 24,200 756
Audiovox, Cl A* 39,800 1,184
ICG Communications* # 60,100 1,138
Intermedia* # 24,300 677
Mastec* 20,300 836
SBA Communications* 114,300 1,314
--------
5,905
--------
TRUCKING -- 1.2%
Expeditors International of
Washington 34,000 1,386
--------
TOTAL COMMON STOCK
(Cost $76,511) 102,445
--------
REPURCHASE AGREEMENT -- 5.4%
Prudential
5.530% (dated 11/30/99, matures 12/01/99,
repurchase price $ 6,400,983;
collateralized by FHLMC obligation:
market value $ 6,532,350)
5.530% 12/01/99 6,400 6,400
--------
TOTAL REPURCHASE AGREEMENT
(Cost $6,400) 6,400
------------
See Accompanying Notes
28
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP GROWTH FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
(000) (000)
--------- --------
CASH EQUIVALENT -- 4.0%
Goldman Sachs Financial Square
Premium Money Market
Fund 4,718 $ 4,718
--------
TOTAL CASH EQUIVALENT
(Cost $4,718) 4,718
--------
TOTAL INVESTMENTS -- 96.3%
(Cost $87,628) $113,563
========
OTHER ASSETS AND LIABILITIES,
NET -- 3.7% 4,331
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
8,753,180 outstanding shares
of beneficial interest 93,456
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
139,813 outstanding shares
of beneficial interest 1,462
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
15,424 outstanding shares
of beneficial interest 149
Accumulated net realized loss on investments (3,326)
Net unrealized appreciation on investments 25,934
Net unrealized appreciation on futures 347
Net investment loss (128)
--------
TOTAL NET ASSETS -- 100.0% $117,894
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $13.24
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $13.17
========
MAXIMUM OFFERING PRICE PER
SHARE-- CLASS A ($13.17 / 94.5%) $13.94
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $13.00
========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
CL -- CLASS
See Accompanying Notes
29
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA SMALL CAP GROWTH FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year For the Period
(Unaudited) Ended May 31, 1999 Ended May 31, 1998
----------------------------- ---------------------------- ----------------------------
Class I Class A Class B Class I Class A Class B Class I2 Class A2 Class B2
-------- ------- ------- ------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 10.14 $10.11 $ 10.01 $ 11.69 $11.68 $ 11.66 $ 10.00 $10.00 $10.64
-------- ------ ------- ------- ------ ------- ------- ------ ------
INCOME FROM INVESTMENT
OPERATIONS
Net investment
income/(loss) 0.01 (0.00) (0.05) (0.03)3 (0.05)3 (0.10)3 0.01 0.01 (0.01)
Net gain/(loss) on securities
(realized and unrealized) 3.09 3.06 3.04 (1.41) (1.41) (1.44) 1.72 1.71 1.03
-------- ------ ------- ------- ------ ------- ------- ------ ------
Total from investment
operations 3.10 3.06 2.99 (1.44) (1.46) (1.54) 1.73 1.72 1.02
-------- ------ ------- ------- ------ ------- ------- ------ ------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.01) (0.01) (0.00)
Distributions from net
realized capital gains (0.00) (0.00) (0.00) (0.11) (0.11) (0.11) (0.03) (0.03) (0.00)
-------- ------ ------- ------- ------ ------- ------- ------ ------
Total distributions (0.00) (0.00) (0.00) (0.11) (0.11) (0.11) (0.04) (0.04) (0.00)
-------- ------ ------- ------- ------ ------- ------- ------ ------
Net asset value, end of period $ 13.24 $13.17 $ 13.00 $ 10.14 $10.11 $ 10.01 $ 11.69 $11.68 $11.66
======== ====== ======= ======= ====== =======
TOTAL RETURN 30.96%5 30.65%1,5 30.26%1,5 (12.36)% (12.54)%1 (13.26)%1 17.35%5 17.18%1,5 9.59%1,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $115,852 $1,841 $ 201 $80,145 $1,089 $ 139 $54,476 $ 331 $ 1
Ratio of expenses to
average net assets 1.21%4 1.46%4 2.17%4 1.27% 1.51% 2.23% 0.98%4 1.23%4 1.92%4
Ratio of net investment
income/(loss) to average
net assets (0.25)%4 (0.50)%4 (1.21)%4 (0.27)% (0.51)% (1.23)% 0.14%4 (0.32)%4 (0.87)%4
Ratio of expenses to
average net assets
before fee waivers 1.21%4 1.46%4 (2.17%)4 1.27% 1.51% 2.23% 1.09%4 1.34%4 3.06%4
Ratio of net investment
income/(loss) to
average net assets before
fee waivers (0.25)%4 (0.50)%4 (1.21)%4 (0.27)% (0.51)% (1.23)% 0.03%4 (0.43)%4 (2.01)%4
Portfolio turnover rate 87% 87% 87% 159% 159% 159% 31% 31% 31%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON AUGUST 1, 1997,
AUGUST 1, 1997 AND JANUARY 6, 1998, RESPECTIVELY.
3 CALCULATED BASED UPON AVERAGE SHARES OUTSTANDING.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
30
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP VALUE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- 89.7%
AUTOMOTIVE PARTS-EQUIPMENT -- 2.3%
Amcast Industrial 100,800 $ 1,411
Simpson Industries 170,000 1,790
TBC* 267,500 1,572
Transpro 251,400 1,666
--------
6,439
--------
BANKS -- 8.0%
Amcore Financial 90,000 2,272
Associated Banc 51,900 2,027
Bancwest 76,000 3,349
Colonial BancGroup 260,600 2,981
First Midwest Bancorp 70,000 2,940
Imperial Bancorp* 165,000 3,960
Pacific Century 161,800 3,175
Susquehanna Bancshares 100,000 1,731
--------
22,435
--------
BROADCASTING -- 0.6%
Liberty 39,000 1,784
--------
CHEMICALS -- 1.0%
Geon 93,700 2,834
--------
COMMUNICATIONS EQUIPMENT -- 0.7%
Act Manufacturing* 65,000 1,987
--------
COMPUTER HARDWARE -- 1.1%
Hutchinson Technology* # 70,300 1,301
Maxtor* 295,700 1,793
--------
3,094
--------
COMPUTER SOFTWARE -- 3.9%
Axent Technologies* 100,000 2,212
Datastream Systems* 162,600 2,276
Hyperion Solutions* # 100,000 2,737
Mapics* 248,900 2,365
Premisys Communications* 131,900 1,311
--------
10,901
--------
CONTAINERS & PACKAGING -- 1.0%
American National Can Group 223,750 2,895
--------
DRUGS & HEALTH CARE -- 0.6%
Bindley Western 137,000 1,815
--------
ELECTRICAL SERVICES -- 2.2%
Hawaiian Electric Industries # 72,000 2,200
Idacorp # 83,300 2,332
RGS Energy Group 79,600 1,776
--------
6,308
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
ELECTRONICS -- 2.4%
Arrow Electronics* 167,300 $ 3,827
Avnet Electronics 55,700 3,060
--------
6,887
--------
ENTERTAINMENT -- 0.6%
Hollywood Park* 90,000 1,817
--------
FINANCIAL SERVICES -- 1.5%
Liberty Financial 130,000 3,055
Phoenix Investment Partners 162,600 1,270
--------
4,325
--------
FOOD & BEVERAGE -- 3.2%
Canandaigua Brands, Cl A* 44,100 2,348
Flowers Industries 191,600 3,137
IBP 160,100 3,532
--------
9,017
--------
GAS & NATURAL GAS -- 2.1%
MDU Resources 127,600 2,791
Peoples Energy # 86,400 3,175
--------
5,966
--------
HEALTH & ALLIED SERVICES -- 1.7%
First Health Group, Cl A* 113,000 2,846
Mid Atlantic Medical Services* 234,100 1,873
--------
4,719
--------
HUMAN RESOURCES -- 0.5%
Kelly Services, Cl A 58,600 1,536
--------
INSURANCE -- 6.4%
Chicago Title 89,900 4,085
PMI Group 110,000 5,493
Renaissancere Holdings 91,000 3,794
State Auto Financial 120,000 1,148
Triad Guaranty* 150,000 3,413
--------
17,933
--------
INSURANCE - LIFE -- 0.5%
Kansas City Life 40,400 1,414
--------
INSURANCE - PROPERTY AND CASUALTY -- 3.8%
Commerce Group 70,000 1,951
Farm Family Holdings* 45,000 1,834
Harleysville Group 190,000 2,862
Horace Mann Educators 110,000 2,413
Selective Insurance Group 100,000 1,750
--------
10,810
--------
See Accompanying Notes
31
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP VALUE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
LEASING & RENTING -- 2.0%
Amerco* 60,000 $ 1,586
Dollar Thrifty Automotive* 210,000 4,148
--------
5,734
--------
LEISURE & RECREATIONAL PRODUCTS -- 1.6%
Arctic Cat 199,600 2,046
Brunswick 110,100 2,402
--------
4,448
--------
MACHINERY -- 2.0%
AGCO # 262,200 3,327
Applied Power, Cl A 69,800 2,229
--------
5,556
--------
MARINE TRANSPORTATION -- 1.4%
Alexander & Baldwin 172,000 3,913
--------
MEASURING DEVICES -- 0.9%
Watts Industries 185,000 2,578
--------
MEDICAL & MEDICAL SERVICES -- 1.2%
Provantage Health Services* 170,000 1,764
Province Healthcare* 76,000 1,563
--------
3,327
--------
METALS & MINING -- 1.9%
Cleveland Cliffs 76,800 2,246
Southern Peru Copper 201,500 2,997
--------
5,243
--------
MISCELLANEOUS BUSINESS SERVICES -- 1.1%
American Management
Systems 56,500 1,660
Complete Business Solutions* 79,100 1,498
--------
3,158
--------
OIL & GAS -- 1.2%
Helmerich & Payne 89,000 2,014
Ocean Energy* 162,200 1,237
--------
3,251
--------
PAPER & FOREST PRODUCTS -- 3.0%
Rayonier 56,400 2,506
Rock Tennessee 136,600 2,117
Westvaco 125,000 3,773
--------
8,396
--------
PETROLEUM & FUEL PRODUCTS -- 1.6%
Equitable Resources 106,000 3,690
Titan Exploration* 223,700 797
--------
4,487
--------
Number Value
of Shares (000)
--------- --------
COMMON STOCK -- CONTINUED
PETROLEUM REFINING -- 0.9%
Pennzoil-Quaker State 240,100 $ 2,491
--------
REAL ESTATE INVESTMENT TRUST -- 9.2%
Arden Realty 98,000 1,887
Charles E. Smith Residential
Realty 60,000 1,950
Developers Diversified Realty 147,300 2,053
Essex Property Trust 74,000 2,400
First Industrial Realty Trust 95,000 2,423
General Growth Properties 73,000 2,185
Great Lakes 207,500 3,022
Highwoods Properties 70,000 1,540
Koger Equity 125,000 1,961
Mack-Cali Realty 69,500 1,716
Summit Properties 86,000 1,570
Thornburg Mortgage Asset 375,000 3,188
--------
25,895
--------
RESTAURANTS -- 1.5%
Buffets* # 175,000 1,881
Rare Hospitality* 106,000 2,253
--------
4,134
--------
RETAIL -- 0.9%
Zale* 50,000 2,531
--------
RETAIL MERCHANDISING -- 0.2%
Elder-Berman* 110,000 701
--------
SAVINGS & LOAN ASSOCIATIONS -- 0.9%
Washington Federal 120,000 2,505
--------
SEMI-CONDUCTORS/CAPITAL EQUIPMENT -- 2.5%
Electroglas* 57,600 1,640
LTX* 125,700 2,263
Silicon Valley Group* 220,500 3,156
--------
7,059
------------
SEMI-CONDUCTORS/INSTRUMENTS -- 1.5%
Amkor Technology* # 94,500 2,552
Integrated Device Technology* 74,000 1,744
--------
4,296
--------
SPECIALTY CHEMICALS -- 0.9%
Schulman 155,800 2,468
--------
STEEL -- 3.6%
AK Steel Holding 137,200 2,272
Material Sciences* 115,000 1,258
Olympic* 68,200 345
Ryerson Tull 158,200 3,233
Steel Technologies 268,800 3,024
--------
10,132
--------
See Accompanying Notes
32
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA SMALL CAP VALUE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number of Value
Shares/Par (000) (000)
---------------- --------
COMMON STOCK -- CONTINUED
TELEPHONE & TELECOMMUNICATION -- 1.6%
Brightpoint* # 156,900 $ 1,736
Mastec* 68,000 2,801
--------
4,537
--------
TRUCKING -- 3.0%
Air Express International 36,300 1,171
Arkansas Best* 179,000 2,238
Landstar System* 39,800 1,594
Wabash National # 93,500 1,373
Yellow* 128,600 2,162
--------
8,538
--------
WHOLESALE -- 0.9%
United Stationers # 111,700 2,597
--------
TOTAL COMMON STOCK
(Cost $235,022) 252,891
--------
PREFERRED STOCK -- 0.5%
FINANCE -- 0.5%
Thornburg Mortgage Asset 74,500 1,485
--------
TOTAL PREFERRED STOCK
(Cost $1,964) 1,485
--------
CASH EQUIVALENT -- 4.0%
Fidelity Domestic Money Market
Fund 11,239 11,239
--------
TOTAL CASH EQUIVALENT
(Cost $11,239) 11,239
--------
REPURCHASE AGREEMENT -- 5.4%
Prudential
5.530% (dated 11/30/99, matures
12/01/99, repurchase price
$ 15,102,320; collateralized by
FNMA obligation: market
value $15,432,875) 15,100 15,100
--------
TOTAL REPURCHASE AGREEMENT
(Cost $15,100) 15,100
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $263,325) $280,715
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.5% 1,271
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
19,893,843 outstanding shares
of beneficial interest $265,322
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
796,873 outstanding shares
of beneficial interest 10,646
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
45,737 outstanding shares
of beneficial interest 591
Accumulated net realized loss on
investments (17,314)
Net unrealized appreciation on investments 17,390
Net unrealized appreciation on futures 383
Undistributed net investment income 4,968
--------
TOTAL NET ASSETS -- 100.0% $281,986
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE
PER SHARE -- CLASS I $13.61
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $13.26
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($13.26 / 94.5%) $14.03
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $13.10
========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURTIY FULLY OR PARTIALLY ON LOAN.
CL -- CLASS
See Accompanying Notes
33
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA SMALL CAP VALUE FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months For the Year
Ended November 30, 1999 Ended May 31,
(Unaudited) 1999
----------------------------- ---------------------------
Class I Class A Class B Class I Class A Class B
-------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 13.65 $ 13.31 $13.19 $ 15.72 $ 15.47 $15.42
-------- ------- ------ -------- -------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.18 0.17 0.07 0.09 0.06 (0.03)
Net gain/(loss) on securities
(realized and unrealized) (0.22) (0.22) (0.16) (0.78) (0.85) (0.87)
-------- ------- ------ -------- -------- ------
Total from investment operations (0.04) (0.05) (0.09) (0.69) (0.79) (0.90)
-------- ------- ------ -------- -------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.00) (0.00) (0.00) (0.05) (0.04) (0.00)
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) (1.33) (1.33) (1.33)
-------- ------- ------ -------- -------- ------
Total distributions (0.00) (0.00) (0.00) (1.38) (1.37) (1.33)
-------- ------- ------ -------- -------- ------
Net asset value, end of period $ 13.61 $ 13.26 $13.10 $ 13.65 $ 13.31 $13.19
======== ======= ====== ======== ======== ======
TOTAL RETURN (0.58)%4 (0.75)%1,4 (0.98)%1,4 (3.67)% (4.38)%1 (5.13)%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $270,818 $10,569 $ 599 $270,382 $11,542 $ 515
Ratio of expenses to average net
assets 1.21%3 1.46%3 2.17%3 1.12% 1.38% 2.08%
Ratio of net investment income/
(loss) to average net assets 2.59%3 2.34%3 1.63%3 0.70% 0.44% (0.26)%
Ratio of expenses to average net
assets before fee waivers 1.21%3 1.46%3 2.17%3 1.12% 1.38% 2.08%
Ratio of net investment income/
(loss) to average net assets
before fee waivers 2.59%3 2.34%3 1.63%3 0.70% 0.44% (0.26)%
Portfolio turnover rate 57% 57% 57% 79% 79% 79%
</TABLE>
<TABLE>
<CAPTION>
For the Period
For the Year Ended May 31, Ended May 31,
1998 1997 1996 1995
----------------------------- ----------------- ----------------- -------------------
Class I Class A Class B2 Class I Class A Class I Class A Class I2 Class A2
-------- ------- -------- -------- ------- -------- ------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 15.15 $ 14.95 $15.28 $ 13.10 $12.94 $ 11.38 $11.26 $ 10.00 $10.16
-------- ------- ------ -------- ------ ------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.06 0.01 0.00 0.09 0.08 0.08 0.06 0.10 0.07
Net gain/(loss) on securities
realized and unrealized) 2.87 2.84 0.14 2.90 2.83 2.41 2.37 1.36 1.11
-------- ------- ------ -------- ------ ------- ------ ------- ------
Total from investment operations 2.93 2.85 0.14 2.99 2.91 2.49 2.43 1.46 1.18
-------- ------- ------ -------- ------ ------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.07) (0.04) (0.00) (0.09) (0.05) (0.08) (0.06) (0.04) (0.04)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) (0.00) (0.00) (0.02) (0.02) (0.00) (0.00)
Distributions from net realized
capital gains (2.29) (2.29) (0.00) (0.85) (0.85) (0.67) (0.67) (0.04) (0.04)
-------- ------ ------ -------- ------ ------- ------ ------- ------
Total distributions (2.36) (2.33) (0.00) (0.94) (0.90) (0.77) (0.75) (0.08) (0.08)
-------- ------ ------ -------- ------ ------- ------ ------- ------
Net asset value, end of period $ 15.72 $ 15.47 $15.42 $ 15.15 $14.95 $ 13.10 $12.94 $ 11.38 $11.26
======== ======= ====== ======== ====== ======= ====== ======= ======
TOTAL RETURN 19.82% 19.51%1 19.12%1,3 23.61% 23.26%1 22.64% 22.28%1,4 17.42%1,4 14.80%1,4
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $284,295 $10,634 $ 61 $199,311 $4,929 $99,294 $4,702 $50,993 $3,567
Ratio of expenses to average net
assets 0.98% 1.23% 1.92%3 0.97% 1.22% 1.05% 1.30% 1.01%3 1.34%3
Ratio of net investment income/
(loss) to average net assets 0.43% 0.19% (0.48)%3 0.83% 0.57% 0.83% 0.58% 1.31%3 1.09%3
Ratio of expenses to average net
assets before fee waivers 0.98% 1.23% 1.92%3 0.97% 1.22% 1.06% 1.32% 1.15%3 1.38%3
Ratio of net investment income/
(loss) to average net assets
before fee waivers 0.43% 0.19% (0.48)%2 0.83% 0.51% 0.82% 0.56% 1.17%2 1.05%2
Portfolio turnover rate 89% 89% 89% 64% 64% 106% 106% 69% 69%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON JULY 26, 1994,
AUGUST 15, 1994 AND JANUARY 6, 1998, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
34
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX MANAGED EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- 97.3%
AIR TRANSPORTATION -- 0.1%
Southwest Airlines 18,000 $ 294
-------
BANKS -- 6.6%
Northern Trust # 16,000 1,549
State Street 89,000 6,536
SunTrust 9,000 629
Wachovia 35,600 2,757
Wells Fargo # 148,000 6,882
-------
18,353
-------
BROADCASTING, NEWSPAPERS & ADVERTISING -- 1.2%
Omnicom Group # 39,000 3,437
-------
BUSINESS SERVICES -- 3.4%
Automatic Data Processing 188,000 9,282
-------
CHEMICALS -- 0.2%
Air Products & Chemicals 15,000 486
-------
COMMUNICATIONS EQUIPMENT -- 3.5%
Lucent Technologies 60,000 4,384
Nortel Networks # 33,000 2,442
Qualcomm* 8,000 2,898
-------
9,724
-------
COMPUTER HARDWARE -- 6.9%
Cisco Systems* # 72,950 6,506
Compaq Computer 12,500 305
Dell Computer* # 20,000 860
EMC* 10,000 836
Hewlett Packard 73,000 6,926
Sun Microsystems* # 28,000 3,703
-------
19,136
-------
COMPUTER SOFTWARE -- 2.0%
Microsoft* # 60,600 5,517
-------
DRUGS & HEALTH CARE -- 17.6%
Abbott Laboratories # 191,000 7,258
American Home Products 10,000 520
Bristol-Myers Squibb 152,880 11,170
Johnson & Johnson # 16,000 1,660
Merck 96,000 7,536
Pfizer 276,000 9,988
Schering-Plough 209,400 10,706
-------
48,838
-------
ENTERTAINMENT -- 1.3%
Walt Disney 126,750 3,533
-------
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
FINANCIAL SERVICES -- 0.3%
Fannie Mae 13,500 $ 899
-------
FOOD & BEVERAGE -- 3.8%
Anheuser Busch 5,000 374
Coca Cola 42,800 2,881
PepsiCo 211,500 7,310
-------
10,565
-------
HOLDING COMPANIES -- 1.0%
Berkshire Hathaway, Cl A* 47 2,693
-------
HOUSEHOLD PRODUCTS -- 1.9%
Procter & Gamble 48,000 5,184
-------
INFORMATION RETRIEVAL SERVICES -- 1.3%
America Online* # 48,000 3,489
-------
INSURANCE -- 5.2%
American International Group 124,788 12,884
Chubb 30,000 1,607
-------
14,491
-------
MEDICAL & MEDICAL SERVICES -- 0.2%
Medtronic # 14,400 560
-------
MISCELLANEOUS MANUFACTURING -- 0.9%
Illinois Tool Works 12,000 777
Minnesota Mining &
Manufacturing 17,600 1,682
-------
2,459
-------
MOTORCYCLE & MOTOR SCOOTER -- 2.6%
Harley-Davidson 117,600 7,174
-------
OFFICE & BUSINESS EQUIPMENT -- 3.0%
Lexmark International, Cl A* 12,000 996
Pitney Bowes 153,000 7,334
-------
8,330
-------
OIL MACHINERY & EQUIPMENT -- 1.1%
Schlumberger 50,000 3,003
-------
PERSONAL CARE -- 0.1%
Gillette 5,000 201
-------
PETROLEUM REFINING -- 4.9%
BP Amoco, ADR # 87,868 5,354
Exxon 52,000 4,124
Mobil 10,000 1,043
Royal Dutch Petroleum 52,400 3,039
-------
13,560
-------
See Accompanying Notes
35
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX MANAGED EQUITY FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number of Value
Shares/Par (000) (000)
---------------- -------
COMMON STOCK -- CONTINUED
RESTAURANTS -- 1.0%
McDonald's # 64,000 $ 2,880
--------
RETAIL -- 8.2%
Dayton Hudson 13,300 938
Gap 17,000 688
Home Depot 187,500 14,824
Staples* 45,000 1,057
Wal-Mart # 89,000 5,129
--------
22,636
--------
SEMI-CONDUCTORS/INSTRUMENTS -- 5.8%
Intel # 168,000 12,884
Texas Instruments 32,000 3,074
--------
15,958
--------
SPECIALTY MACHINERY -- 6.0%
Emerson Electric 70,200 4,001
General Electric 97,900 12,727
--------
16,728
--------
TELEPHONE & TELECOMMUNICATION -- 7.1%
BellSouth 89,000 4,111
GTE 15,500 1,132
MCI WorldCom* # 46,750 3,866
Motorola # 42,000 4,799
SBC Communications 59,795 3,106
US West 24,800 1,539
Vodafone Group # 25,000 1,180
--------
19,733
--------
TOTAL COMMON STOCK
(Cost $54,872) 269,143
--------
CASH EQUIVALENT -- 2.5%
Fidelity Domestic Money
Market Fund 6,969 6,969
--------
TOTAL CASH EQUIVALENT
(Cost $6,969) 6,969
--------
TOTAL INVESTMENTS -- 99.8%
(Cost $61,841) $276,112
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.2% 594
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
18,753,483 outstanding shares
of beneficial interest $ 40,651
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
1,109,819 outstanding shares
of beneficial interest 13,555
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
644,652 outstanding shares
of beneficial interest 7,853
Accumulated net realized gain on investments 270
Net unrealized appreciation on investments 214,271
Undistributed net investment income 106
--------
TOTAL NET ASSETS -- 100.0% $276,706
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $13.49
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $13.54
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($13.54 / 94.5%) $14.33
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $13.43
========
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
See Accompanying Notes
36
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA TAX MANAGED EQUITY FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year
(Unaudited) Ended May 31, 1999
-------------------------------- -----------------------------
Class I Class A Class B Class I Class A Class B
-------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 12.13 $ 12.16 $ 12.12 $ 9.93 $ 9.93 $ 9.93
-------- -------- -------- -------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.01 (0.00) (0.03) 0.05 0.04 (0.02)
Net gain/(loss) loss on securities
(realized and unrealized) 1.37 1.38 1.34 2.21 2.24 2.23
-------- -------- -------- -------- ------ ------
Total from investment operations 1.38 1.38 1.31 2.26 2.28 2.21
-------- -------- -------- -------- ------ ------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.02) (0.00) (0.00) (0.05) (0.04) (0.01)
Distributions from net
realized capital gains (0.00) (0.00) (0.00) (0.01) (0.01) (0.01)
-------- -------- -------- -------- ------ ------
Total distributions (0.02) (0.00) (0.00) (0.06) (0.05) (0.02)
-------- -------- -------- -------- ------ ------
Net asset value, end of period $ 13.49 $ 13.54 $ 13.43 $ 12.13 $12.16 $12.12
======== ======== ======== ======== ====== ======
TOTAL RETURN 12.19%4 12.22%1,4 11.64%1,4 22.82% 23.03%1 22.31%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $253,021 $15,027 $ 8,658 $241,501 $7,353 $5,377
Ratio of expenses to average
net assets 0.92%3 1.17%3 1.88%3 0.83% 1.09% 1.79%
Ratio of net investment income/
(loss) to average net assets 0.22%3 (0.03)%3 (1.74)%3 0.37% 0.11% (0.59)%
Ratio of expenses to average
net assets
before fee waivers 0.92%3 1.17%3 1.88%3 1.01% 1.27% 1.97%
Ratio of net investment income/
(loss) to average
net assets before fee waivers 0.22%3 (0.03)%3 (1.74)%3 0.19% (0.07)% (0.77)%
Portfolio turnover rate 3% 3% 3% 5% 5% 5%
</TABLE>
<TABLE>
<CAPTION>
For the Period
Ended May 31, 1998
-------------------------------
Class I2 Class A2 Class B2
-------- -------- --------
<S> <C> <C> <C>
Net asset value, beginning
of period $ 10.00 $10.10 $10.21
-------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.00 0.00 0.00
Net gain/(loss) loss on securities
(realized and unrealized) (0.07) (0.17) (0.28)
-------- ------ ------
Total from investment operations (0.07) (0.17) (0.28)
-------- ------ ------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.00) (0.00) (0.00)
Distributions from net
realized capital gains (0.00) (0.00) (0.00)
-------- ------ ------
Total distributions (0.00) (0.00) (0.00)
-------- ------ ------
Net asset value, end of period $ 9.93 $ 9.93 $ 9.93
======== ====== ======
TOTAL RETURN (4.81)%3 (23.63)%1,3 (32.24)%1,3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $158,867 $ 10 $ 85
Ratio of expenses to average
net assets 0.29%3 0.54%3 1.23%3
Ratio of net investment income/
(loss) to average net assets 0.91%3 0.63%3 0.43%3
Ratio of expenses to average
net assets
before fee waivers 1.02%3 1.24%3 1.98%3
Ratio of net investment income/
(loss) to average
net assets before fee waivers 0.18%3 (0.07)%3 1.18%3
Portfolio turnover rate 0% 0% 0%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON APRIL 9, 1998,
MAY 11, 1998 AND MAY 4, 1998, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
37
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- 48.9%
AIR TRANSPORTATION -- 0.2%
Atlas Air* 4,950 $ 125
-------
AIRCRAFT -- 0.3%
United Technologies 3,600 203
-------
AUTO -- 0.2%
Monaco Coach* 9,250 199
-------
BANKS -- 1.4%
Comerica 2,800 148
Cullen/Frost Bankers 4,250 121
Imperial Bancorp* 6,350 152
MBNA 8,800 222
Republic Security Financial 19,400 156
State Street 3,800 279
-------
1,078
-------
BROADCASTING, NEWSPAPERS & ADVERTISING-- 1.2%
Ancor Communications* 1,550 94
Antec*# 3,300 185
Citadel Communications* 2,550 128
Cumulus Media* 5,650 226
Omnicom Group 3,300 291
-------
924
-------
BUILDING & BUILDING SUPPLIES -- 0.2%
Trex* 5,850 151
-------
BUSINESS SERVICES -- 0.8%
Automatic Data Processing 5,500 272
FYI* 3,100 99
National Information
Consortium*# 5,100 135
Online Resources &
Communications* 9,150 112
-------
618
-------
CABLE TELEVISION -- 0.7%
Comcast, Cl A Special 11,600 524
-------
CHEMICALS -- 0.8%
Avery Dennison 4,900 291
Church & Dwight 2,350 66
Monsanto 5,900 249
-------
606
-------
COMMUNICATIONS EQUIPMENT -- 2.6%
Act Manufacturing* 6,000 183
C-COR Electronics 2,200 112
Lucent Technologies 5,400 395
Mercury Computer Systems* 3,750 214
Optical Coating Laboratory 1,350 266
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
COMMUNICATIONS EQUIPMENT -- CONTINUED
Qualcomm* 1,700 $ 616
Sawtek* 5,550 253
-------
2,039
-------
COMPUTER COMMUNICATIONS EQUIPMENT -- 1.1%
Clarify* 2,450 228
Digex* 1,100 37
MicroStrategy* 750 92
OpenTV* 31 2
Optimal Robotics* 5,950 193
Proxim* 1,750 98
Visual Networks* 4,250 251
-------
901
-------
COMPUTER HARDWARE -- 2.6%
Cisco Systems* 12,200 1,088
EMC* 4,400 368
Hewlett Packard 2,500 237
International Business
Machines 4,000 412
-------
2,105
-------
COMPUTER SOFTWARE -- 1.0%
Microsoft* 9,100 829
-------
COMPUTER SERVICES -- 2.4%
Advanced Digital Information* 3,050 137
Allaire* 950 144
Business Objects* 4,100 363
Egain Communication* 1,950 82
Mercury Interactive* 2,250 187
Micromuse* 2,000 229
National Computer Systems 4,750 182
NetObjects* 7,750 105
Novadigm* 8,850 154
Remedy* 3,200 112
Symantec* 5,200 243
-------
1,938
-------
DRUGS & HEALTH CARE -- 3.2%
Bristol-Myers Squibb 3,100 226
ChiRex* 3,450 120
Geltex Pharmaceuticals* 6,150 65
Johnson & Johnson 3,300 342
Lilly (Eli) 2,400 172
Merck 5,600 440
Pfizer 11,800 427
Schering-Plough 5,300 271
Titan Pharmaceuticals*# 8,550 123
Warner-Lambert 4,000 359
-------
2,545
-------
See Accompanying Notes
38
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
ELECTRONICS -- 1.4%
CTS 5,500 $ 441
Dii Group* 5,350 338
Gentex* 8,950 167
Titan* 5,600 152
-------
1,098
-------
ELECTRICAL SERVICES -- 0.4%
Calpine* 2,700 159
Texas Utilities 5,000 179
-------
338
-------
ELECTRICAL TECHNOLOGY -- 0.2%
SBS Technologies* 4,800 162
-------
ENTERTAINMENT -- 0.7%
3DO Company* 9,350 89
Anchor Gaming* 1,600 88
Macrovision* 3,750 240
T-HQ*# 2,800 150
-------
567
-------
FINANCIAL SERVICES -- 1.5%
Fannie Mae 7,100 473
Freddie Mac 7,100 351
J.P. Morgan 1,900 250
Metris 4,650 147
-------
1,221
-------
FOOD & BEVERAGE -- 0.4%
Coca Cola 4,600 310
-------
GAS & NATURAL GAS -- 0.2%
Nicor 3,150 109
Southwest Gas 3,550 83
-------
192
-------
HOTELS & LODGING -- 0.1%
Station Casinos* 4,850 116
-------
HOUSEHOLD PRODUCTS -- 0.6%
Procter & Gamble 4,800 518
-------
INFORMATION RETRIEVAL SERVICES -- 0.4%
Digital River* 3,650 111
Infospace.com* 1,350 137
QRS* 1,600 93
-------
341
-------
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
INSURANCE -- 1.1%
American International Group 5,968 $ 616
Annuity & Life 5,100 145
Scottish Annuity & Life 12,200 104
-------
865
-------
MEDICAL & MEDICAL SERVICES -- 1.7%
Arthrocare* 1,150 70
Biomatrix*# 4,000 94
Colorado Medtech* 1,850 23
Datascope* 7,500 278
Enzon* 2,400 81
Hooper Holmes 11,050 261
Medtronic 7,000 272
PolyMedica* 8,150 143
Priority Healthcare, Cl B* 3,150 78
Theragenics* 7,550 72
-------
1,372
-------
MISCELLANEOUS BUSINESS SERVICES -- 0.5%
Concord EFS*# 8,100 215
Onyx Software* 4,800 155
-------
370
-------
MISCELLANEOUS MANUFACTURING -- 1.2%
Commscope* 8,750 369
Tyco International 13,800 553
-------
922
-------
MOTORCYCLE & MOTOR SCOOTER -- 0.4%
Harley-Davidson 4,900 299
-------
OFFICE & BUSINESS EQUIPMENT -- 0.5%
Lexmark International, Cl A* 4,600 382
-------
PAPER & FOREST PRODUCTS -- 0.4%
International Paper 5,400 282
-------
PERSONAL CARE -- 0.3%
Gillette 6,000 241
-------
PETROLEUM & FUEL PRODUCTS -- 0.5%
Cal Dive International* 1,850 67
Forest Oil* 5,000 57
Louis Dreyfus Natural Gas* 3,000 54
Schlumberger 3,800 228
-------
406
-------
See Accompanying Notes
39
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
PETROLEUM REFINING -- 1.7%
Chevron 4,200 $ 372
Coastal 5,100 180
Conoco 8,000 209
Exxon 7,100 563
Tesoro Petroleum* 3,750 45
-------
1,369
-------
PHARMACEUTICALS -- 0.3%
King Pharmaceuticals*# 6,000 277
-------
PRINTING & PUBLISHING -- 0.8%
Time Warner 7,300 450
Valassis Communications* 3,900 154
-------
604
-------
PROFESSIONAL SERVICES -- 0.4%
Affymetrix* 550 54
Corporate Executive Board* 2,000 93
Diamond Technology Partners* 2,100 110
Millennium Pharmaceutical* 850 83
-------
340
-------
RETAIL -- 5.1%
Cheap Tickets* 5,250 88
Costco Wholesale* 3,500 321
Dayton Hudson 5,100 360
Gap 6,600 267
Home Depot 7,200 569
Jack in the Box* 7,950 167
Rex Stores* 6,550 244
Safeway* 7,700 284
Tandy 7,100 544
The Children's Place
Retail Stores*# 4,250 105
TJX Companies 7,300 191
Too* 7,000 129
Wal-Mart 9,100 524
Walgreen# 9,200 268
-------
4,061
-------
SEMI-CONDUCTORS/INSTRUMENTS -- 4.3%
Altera* 6,100 329
Analog Devices* 4,400 253
ASM International N.V.* 12,400 201
Burr-Brown* 2,800 124
Chartered Semiconductor
Manufacturing** 26 1
Credence Systems* 2,250 130
Cymer*# 3,950 158
Number Value
of Shares (000)
--------- -------
COMMON STOCK -- CONTINUED
SEMI-CONDUCTORS/INSTRUMENTS -- CONTINUED
Exar* 3,950 $ 192
Fairchild Semiconductor
Int'l, Cl A* 3,550 99
Helix Technology 3,350 136
Integrated Device Technology* 3,450 81
Intel 6,600 506
Netsilicon* 13,550 180
PRI Automation, Cl A* 2,250 107
Silicon Storage Technology* 5,100 135
Texas Instruments 4,900 471
Transwitch* 2,300 108
Zoran* 5,000 199
-------
3,410
-------
SPECIALTY MACHINERY -- 1.3%
Emerson Electric 4,600 262
General Electric 5,700 741
-------
1,003
-------
TELEPHONE & TELECOMMUNICATION -- 3.2%
Adelphia Business Solutions* 3,500 109
Alltel 3,500 303
Audiovox, Cl A* 6,050 180
GTE 6,100 445
ICG Communications*# 8,700 165
Intermedia# 3,450 96
Mastec* 2,600 107
MCI WorldCom* 5,700 471
SBA Communications* 12,600 145
SBC Communications 9,648 501
-------
2,522
-------
TRUCKING -- 0.2%
Expeditors International of
Washington 4,800 196
-------
WHOLESALE -- 0.5%
BJ's Wholesale Club* 4,500 168
Cardinal Health 4,100 214
-------
382
-------
TOTAL COMMON STOCK
(Cost $31,584) 38,951
-------
See Accompanying Notes
40
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
FOREIGN COMMON STOCK -- 12.5%
AUSTRALIA -- 0.1%
National Australia Bank*# 6,449 $ 93
-------
AUSTRIA -- 0.1%
Mayr Melnhof Karton* 1,131 47
-------
CANADA -- 0.1%
BCE 1,552 105
-------
FINLAND -- 0.4%
Nokia, ADR 1,284 177
Sonera Oyj 2,240 93
UPM-Kymmene* 1,121 38
-------
308
-------
FRANCE -- 1.4%
Altran Technologies* 348 166
Axa* 1,060 143
Castorama Dubois* 501 130
Compagnie de Saint Gobain* 266 45
Equant 502 49
France Telecom* 1,074 125
Rhone-Poulenc* 1,979 123
STMicroelectronics* 1,021 139
Thomson Multimedia* 224 10
Total Fina, Cl B* 1,200 160
Vivendi* 827 66
-------
1,156
-------
GERMANY -- 1.1%
Allianz* 278 82
HypoVereinsbank* 976 61
Deutsche Bank* 1,688 111
Deutsche Telekom 1,107 63
Epcos* 1,086 67
Linde* 1,473 74
Mannesmann*# 974 203
Siemens* 1,788 181
Foreign Stock* 3,207 53
-------
895
-------
HONG KONG -- 0.8%
China Telecom (Hong Kong)* 35,153 189
HSBC Holdings* 6,452 86
Hutchison Whampoa Limited* 7,776 96
Johnson Electric Holdings* 21,602 154
Li & Fung* 16,960 39
Swire Pacific, Cl A* 10,204 59
-------
623
-------
Number Value
of Shares (000)
--------- -------
FOREIGN COMMON STOCK -- CONTINUED
IRELAND -- 0.1%
Bank of Ireland* 8,010 $ 66
-------
ITALY -- 0.4%
Assicurazioni Generali* 1,176 34
Bulgari* 6,385 49
Telecom Italia* 9,888 109
Telecom Italia Mobile*# 14,188 112
-------
304
-------
JAPAN -- 3.4%
Fancl* 109 39
Bank of Tokyo-Mitsubishi* 1,758 25
Benesse* 748 180
Fanuc* 2,119 177
Fujitsu* 2,219 79
Hikari Tsushin* 69 108
Honda Motor* 283 12
Internet Initiative Japan, ADR* 358 34
Itochu* 10,995 66
Marubeni* 15,792 61
Nihon Unisys* 2,204 85
Nikko Securities* 6,023 75
Nintendo* 207 35
NEC* 3,352 78
Nippon Telegraph & Telephone* 1 18
NTT Mobile Communications
Network 10 351
Sanwa Bank* 3,086 38
Seven-Eleven* 392 64
SMC* 462 82
Softbank* 768 555
Sony* 1,213 225
Sumitomo Bank 1,950 30
Takeda Chemical Industries* 1,873 111
Takefuji 320 46
Tokyo Electron* 1,337 139
-------
2,713
-------
MEXICO -- 0.1%
Telefonos de Mexico, ADR 608 56
-------
NETHERLANDS -- 0.5%
Heineken* 1,050 51
ING Groep* 1,918 108
Koninklijke Ahold* 1,531 49
Royal Dutch Petroleum* 2,303 136
Wolters Kluwer* 2,283 69
-------
413
-------
See Accompanying Notes
41
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Number Value
of Shares (000)
--------- -------
FOREIGN COMMON STOCK -- CONTINUED
POLAND -- 0.0%
Polski Koncern Nafto ADR* 799 $ 8
-------
SINGAPORE -- 0.4%
DBS Group Holdings* 3,105 40
Development Bank Singapore* 6,000 78
Natsteel Electronics* 15,330 63
Singapore Airlines 11,511 116
Singapore Press Holdings* 2,392 45
-------
342
-------
SOUTH KOREA -- 0.1%
Pohang Iron & Steel, ADR* 3,127 112
-------
SPAIN -- 0.2%
Telefonica* 5,416 113
Telefonica - New* 114 2
Terra Networks* 237 8
-------
123
-------
SWEDEN -- 0.4%
LM Ericsson, ADR 2,814 136
Hennes & Mauritz, Series B* 3,572 113
Pharmacia & Upjohn, ADR 725 40
Svenska Cellulosa, Series A* 1,737 48
-------
337
-------
SWITZERLAND -- 0.8%
Adecco* 80 51
Credit Suisse Group* 452 85
Nestle* 37 67
Novartis* 73 114
Roche Holding* 11 133
Swiss Re* 45 92
UBS, Registered* 406 111
-------
653
-------
TAIWAN -- 0.1%
Taiwan Semiconductor, ADR* 2,885 103
-------
UNITED KINGDOM -- 1.9%
Allied Zurich* 8,076 98
Bass* 3,925 44
Batm Advanced Communications* 617 40
BOC Group* 4,839 100
BP Amoco* 12,265 125
British Telecom* 4,509 91
Colt Telecom Group* 1,545 58
Compass Group* 5,610 68
Ebookers.com, ADR* 974 22
Energis* 1,607 65
General Electric 8,379 129
Logica* 4,604 116
Number of Value
Maturity Shares/Par (000) (000)
--------- ---------------- -------
FOREIGN COMMON STOCK -- CONTINUED
UNITED KINGDOM -- CONTINUED
National Grid Holdings* 12,134 $ 93
Pearson* 5,716 137
QXL* 6,800 47
Invensys* 18,809 88
SmithKline Beecham* 3,202 43
Standard Chartered* 3,182 43
Thus* (B) 8,494 53
WPP Group* 4,677 69
-------
1,529
-------
TOTAL FOREIGN COMMON STOCKS
(Cost $8,414) 9,986
-------
CORPORATE BONDS -- 11.1%
BANKS -- 1.8%
Citicorp
7.125% 09/01/05 $ 75 75
6.375% 11/15/08 300 280
First Chicago Bank One
6.875% 06/15/03 310 309
First Maryland Bancorp
7.200% 07/01/07 300 295
First Union
6.950% 11/01/04 325 323
HSBC Holding
7.500% 07/15/09 155 155
-------
1,437
-------
BUILDING & CONSTRUCTION -- 0.2%
Halliburton
5.625% 12/01/08 175 157
-------
CHEMICALS -- 0.6%
Lubrizol
5.875% 12/01/08 250 224
Monsanto (B)*
5.375% 12/01/01 300 293
-------
517
-------
COMMUNICATIONS EQUIPMENT -- 0.4%
Motorola
7.500% 05/15/25 320 318
-------
COMPUTER SOFTWARE -- 0.6%
Computer Associates
6.250% 04/15/03 470 454
-------
FINANCIAL SERVICES -- 1.3%
Daimler Chrysler Global
6.900% 09/01/04 75 75
See Accompanying Notes
42
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ -------
CORPORATE BONDS -- CONTINUED
FINANCIAL SERVICES -- CONTINUED
First Union Capital Trust
7.950% 11/15/29 $ 340 $ 331
Ford Motor Credit Global
6.700% 07/16/04 275 272
7.375% 10/28/09 320 322
-------
1,000
-------
FOOD & BEVERAGE -- 0.1%
Archer Daniels Midland
7.500% 03/15/27 100 98
-------
FOREIGN -- 0.7%
Saskatchewan
8.000% 07/15/04 500 521
-------
LEISURE & RECREATIONAL PRODUCTS -- 0.4%
Brunswick
6.750% 12/15/06 300 284
-------
MACHINERY -- 0.5%
Cummins Engine
6.450% 03/01/05 200 189
Pentair
7.850% 10/15/09 250 247
-------
436
-------
MISCELLANEOUS PERSONAL CREDIT -- 0.1%
General Motors Acceptance
9.000% 10/15/02 50 53
-------
MORTGAGE BANKERS & CORRESPONDENTS -- 0.6%
Countrywide Home Loan
6.840% 10/22/04 500 489
-------
PRINTING & PUBLISHING -- 0.6%
American Greetings
6.100% 08/01/28 500 456
-------
REAL ESTATE DEVELOPMENT -- 0.3%
Susa Partnership
7.000% 12/01/07 300 272
-------
REAL ESTATE INVESTMENT TRUSTS -- 2.2%
Bradley Operating Partnership
7.000% 11/15/04 30 29
Commercial Net Lease Realty
8.125% 06/15/04 350 343
EOP Operating
6.500% 06/15/04 250 238
Federal Realty Investment Trust
8.750% 12/01/09 425 420
Gables Realty
6.800% 03/15/05 300 283
Par Value
Maturity (000) (000)
-------- ------ -------
CORPORATE BONDS -- CONTINUED
REAL ESTATE INVESTMENT TRUST -- CONTINUED
New Plan Excel Realty Trust
6.875% 10/15/04 $ 440 $ 431
-------
1,744
-------
STEEL & STEEL WORKS -- 0.5%
Worthington Industries
7.125% 05/15/06 430 417
-------
WHOLESALE -- 0.2%
Arrow Electronic
6.875% 06/01/18 225 199
-------
Total Corporate Bonds
(Cost $9,221) 8,852
-------
ASSET BACKED SECURITIES -- 5.3%
Champion Home Equity Loan Trust,
Series 1997-2, Class A5
6.710% 09/25/29 160 156
First Security Auto Owner Trust,
Series 1999-1, Class A4
5.740% 06/15/04 400 392
Flagship Auto Receivables Owner
Trust, Series 1999-2, Class A3
6.835% 11/18/04 135 135
GE Capital Mortgage,
Series 1999-HE1, Class A4
6.185% 01/25/23 290 282
Greenpoint Manufactured Housing,
Series 1999-1, Class A3
6.110% 11/15/18 290 273
IMC Home Equity Loan Trust,
Series 1997-7, Class A5
6.760% 10/20/20 560 554
New Century Home Equity Loan Trust,
Series 1999-NCA, Class A4
7.220% 07/25/30 300 294
New Century Home Equity Loan Trust,
Series 1999-NCB, Class A4
7.530% 09/25/28 285 284
New Century Home Equity Loan Trust,
Series 1997-NC6, Class A6
7.010% 05/25/26 380 375
Residential Asset Security Trust,
Series 1999-KS3, Class A3
7.180% 02/25/25 200 200
Saxon Asset Security Trust,
Series 1999-3, Class Af4
7.550% 10/25/26 670 671
See Accompanying Notes
43
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ -------
ASSET BACKED SECURITIES -- CONTINUED
Saxon Asset Security Trust,
Series 1999-3, Class Af6
7.525% 06/25/14 $ 295 $ 293
Vanderbilt Mortgage Finance,
Series 1999-C, Class 1A3
7.385% 01/07/20 300 300
-------
TOTAL ASSET BACKED SECURITIES
(Cost $4,252) 4,209
-------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 3.8%
Credit Suisse First Boston Mortgage
Securities, Series 1997-C1, Class A1C
7.240% 04/20/07 410 403
GE Capital Mortgage,
Series 1999-1, Class A1
6.500% 01/25/29 159 146
Morgan Stanley Capital I,
Series 1999-FNV1, Class A2
6.530% 03/15/32 550 521
PNC Trust, Series 1998-7, Class A5
6.750% 09/25/28 230 215
Prudential Securities Secured Financing,
Series 1999-NRF1, Class A2
6.480% 01/15/09 285 267
Prudential Securities Secured Financing,
Series 1998-C1, Class A1A3
6.350% 09/15/07 400 379
Residential Accredit Loans,
Series 1999-QS3, Class A8
6.500% 03/25/29 527 485
Residential Funding Mortgage
Securities I, Series 1998-S13,
Class A21
6.750% 06/25/28 270 248
Vende Mortgage Trust,
Series 1999-3, Class D
6.500% 06/15/15 350 328
-------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $3,146) 2,992
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 12.6%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.4%
Pool # C18271
7.000% 11/01/28 288 282
-------
Par Value
Maturity (000) (000)
-------- ------ -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 7.0%
Pool # 376750
7.000% 09/01/27 $ 781 $ 766
Pool # 437810
6.000% 08/01/28 816 757
Pool # 437972
6.000% 08/01/28 197 183
Pool # 437979
6.000% 08/01/28 487 451
Pool # 440148
6.500% 08/01/28 1,805 1,722
Pool # 453931
6.500% 11/01/28 519 495
Pool # 484693
6.000% 02/01/29 1,328 1,232
-------
5,606
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 5.2%
Pool # 464845
7.500% 09/15/02 1,300 1,296
Pool # 17581
7.500% 08/15/25 392 392
Pool # 498651
6.500% 04/01/29 1,187 1,130
Pool # 472939
6.500% 05/15/29 236 225
Pool # 510422
7.500% 09/15/29 929 928
Pool # 481632
7.500% 11/15/29 155 155
-------
4,126
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $10,382) 10,014
-------
U.S. TREASURY OBLIGATIONS -- 3.2%
U.S. Treasury Note #
6.250% # 10/31/01 150 151
6.500% # 05/15/05 1,355 1,373
6.125% # 08/15/07 925 916
-------
U.S. Treasury Bonds #
6.250% # 08/15/23 110 106
-------
2,546
-------
TOTAL U.S. TREASURY
(Cost $2,541) 2,546
-------
See Accompanying Notes
44
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BALANCED ALLOCATION FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
(000) (000)
------ -------
CASH EQUIVALENT -- 0.2%
Goldman Sachs Financial Square
Premium Money Market
Fund $ 167 $ 167
-------
TOTAL CASH EQUIVALENT
(Cost $167) 167
-------
TOTAL INVESTMENTS -- 97.5%
(Cost $69,707) $77,717
=======
OTHER ASSETS AND LIABILITIES,
NET -- 2.5% 2,017
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
6,789,220 outstanding shares
of beneficial interest 68,855
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
349,662 outstanding shares
of beneficial interest 3,659
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
43,630 outstanding shares
of beneficial interest 453
Accumulated net realized loss on investments (1,531)
Net unrealized appreciation on investments 8,010
Undistributed net investment income 288
-------
TOTAL NET ASSETS -- 100.0% $79,734
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $11.10
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $11.09
=======
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($11.09 / 95.25%) $11.64
=======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $11.12
=======
- ------------------------------------------------
* NON-INCOME PRODUCING SECURITY.
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
(B) -- PRIVATE PLACEMENT SECURITIES
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
SER -- SERIES
See Accompanying Notes
45
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA BALANCED ALLOCATION FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Period
(Unaudited) Ended May 31, 1999
-------------------------------- -------------------------------------
Class I Class A Class B Class I2 Class A2 Class B2
-------- ------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.31 $10.31 $10.33 $ 10.00 $ 9.74 $ 9.82
------- ------ ------ ------- ------ ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.12 0.10 0.07 0.18 0.14 0.10
Net gain on securities
(realized and unrealized) 0.79 0.79 0.79 0.28 0.57 0.51
------- ------ ------ ------- ------ ------
Total from investment operations 0.91 0.89 0.86 0.75 0.71 0.61
------- ------ ------ ------- ------ ------
Less Distributions
Dividends from net investment income (0.12) (0.11) (0.07) (0.14) (0.10) (0.10)
------- ------ ------ ------- ------ ------
Total distributions (0.12) (0.11) (0.07) (0.15) (0.14) (0.10)
------- ------ ------ ------- ------ ------
Net asset value, end of period $ 11.10 $11.09 $11.12 $ 10.31 $10.31 $10.33
======= ====== ====== ======= ====== ======
TOTAL RETURN 9.29%4 9.09%1,4 8.77%1,4 4.57%4 7.26%1,4 6.07%1,4
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $75,370 $3,879 $ 485 $85,027 $1,466 $ 385
Ratio of expenses to average net assets 0.90%3 1.15%3 1.86%3 1.06%3 1.31%3 2.02%3
Ratio of net investment income to
average net assets 2.16%3 1.91%3 1.20%3 2.25%3 2.50%3 1.29%3
Ratio of expenses to average net assets
before fee waivers 0.90%3 1.15%3 1.86%3 1.06%3 1.31%3 2.02%3
Ratio of investment income to average net
assets before fee waivers 2.16%3 1.91%3 1.20%3 2.25%3 2.50%3 1.29%3
Portfolio turnover rate 87% 87% 87% 116% 116% 116%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON JULY 10, 1998, JULY 31,
1998 AND NOVEMBER 11, 1998, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
46
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- -------
CORPORATE BONDS -- 26.2%
BANKS -- 5.9%
Citicorp
6.375% 11/15/08 $ 8,000 $ 7,480
First Chicago Bank One
6.875% 06/15/03 7,000 6,982
First Maryland Bancorp
7.200% 07/01/07 5,000 4,925
First Union
6.950% 11/01/04 7,970 7,920
First Union Capital Trust
7.950% 11/15/29 8,440 8,218
HSBC Holding
7.500% 07/15/09 5,750 5,764
-------
41,289
-------
BUILDING & CONSTRUCTION -- 0.3%
Halliburton
5.625% 12/01/08 2,000 1,797
-------
CHEMICALS -- 0.9%
Lubrizol
5.875% 12/01/08 7,360 6,587
-------
COMMUNICATIONS EQUIPMENT -- 1.2%
Motorola
7.500% 05/15/25 8,395 8,332
-------
COMPUTER SOFTWARE -- 1.7%
Computer Associates
6.250% 04/15/03 12,250 11,821
-------
FINANCIAL SERVICES -- 1.8%
Daimler Chrysler Global
6.900% 09/01/04 2,220 2,217
Ford Motor Credit Global
6.700% 07/16/04 2,750 2,719
7.375% 10/28/09 7,300 7,352
Sallie Mae
7.300% 08/01/09 500 517
-------
12,805
-------
FOOD & BEVERAGE -- 1.2%
Archer Daniels Midland
7.500% 03/15/27 6,900 6,771
Kraft
8.500% 02/15/17 1,313 1,354
-------
8,125
-------
INSURANCE -- 0.4%
Cigna
7.400% 05/15/07 3,000 2,951
-------
Par Value
Maturity (000) (000)
-------- ------- -------
CORPORATE BONDS -- CONTINUED
LEISURE & RECREATIONAL PRODUCTS -- 1.1%
Brunswick
6.750% 12/15/06 $ 8,170 $ 7,741
--------
MACHINERY -- 1.6%
Cummins Engine
6.450% 03/01/05 4,800 4,536
Pentair
7.850% 10/15/09 6,680 6,605
--------
11,141
--------
PRINTING & PUBLISHING -- 1.5%
American Greetings
6.100% 08/01/28 10,465 9,549
Knight-Ridder
8.500% 09/01/01 1,036 1,048
--------
10,597
--------
RAILROADS -- 0.3%
CSX Transportation
7.540% 03/15/03 2,000 2,020
--------
REAL ESTATE DEVELOPMENT -- 0.9%
Susa Partnership
7.000% 12/01/07 7,000 6,352
--------
REAL ESTATE INVESTMENT TRUSTS -- 4.6%
Bradley Operating Partnership
7.000% 11/15/04 3,100 2,949
Commercial Net Lease Realty
8.125% 06/15/04 5,500 5,397
Federal Realty Investment Trust
8.750% 12/01/09 10,000 9,889
Gables Realty
6.800% 03/15/05 4,665 4,407
Prime Property Funding,
Series II (B)
6.800% 08/15/02 10,000 9,865
--------
32,507
--------
STEEL & STEEL WORKS -- 1.9%
Worthington Industries
7.125% 05/15/06 13,910 13,510
--------
WHOLESALE -- 0.9%
Arrow Electronic
6.875% 06/01/18 6,700 6,036
--------
TOTAL CORPORATE BONDS
(Cost $190,333) 183,611
--------
See Accompanying Notes
47
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- --------
ASSET BACKED SECURITIES -- 17.8%
Amresco Securitized Net Interest
Margin, Series 1999-1A, Class A
9.100% 09/27/29 $ 8,490 $ 8,299
Champion Home Equity Loan Trust,
Series 1997-2, Class A5
6.710% 09/25/29 3,900 3,799
Export Funding Trust,
Series 1995-A, Class A
8.210% 12/29/06 2,258 2,377
First Security Auto Owner Trust,
Series 1999-1, Class A4
5.740% 06/15/04 9,970 9,769
Flagship Auto Receivables Owner
Trust, Series 1999-2, Class A3
6.835% 11/18/04 3,250 3,243
GE Capital Mortgage,
Series 1999-HE1, Class A4
6.185% 01/25/23 9,760 9,488
Greenpoint Manufactured Housing,
Series 1999-1, Class A3
6.110% 11/15/18 6,880 6,485
IMC Home Equity Loan Trust,
Series 1997-7, Class A5
6.760% 10/20/20 12,810 12,664
New Century Home Equity Loan
Trust, Series 1997-NC6, Class A6
7.010% 05/25/26 9,000 8,891
New Century Home Equity Loan
Trust, Series 1999-NCB, Class A4
7.530% 09/25/28 7,525 7,499
New Century Home Equity Loan
Trust, Series 1999-NCA, Class A4
7.220% 07/25/30 7,029 6,885
Pegasus Aviation Lease Securitization,
Series 1999-1, Class A1 (B)
6.300% 03/25/29 7,292 7,071
Residential Asset Security Trust,
Series 1999-KS3, Class A3
7.180% 02/25/25 5,240 5,229
Saxon Asset Security Trust,
Series 1999-3, Class AF6
7.525% 06/25/14 7,303 7,264
Saxon Asset Security Trust,
Series 1999-3, Class AF4
7.550% 10/25/26 16,730 16,751
The Money Store Home Equity
Trust, Series 1998-A, Class AV (A)
5.610% 06/15/29 2,123 2,122
Par Value
Maturity (000) (000)
--------- ------- --------
ASSET BACKED SECURITIES -- CONTINUED
Turkey Trust, Series T-3
9.625% 05/15/02 $ 297 $ 304
Vanderbilt Mortgage Finance,
Series 1999-C, Class 1A3
7.385% 01/07/20 6,610 6,605
--------
TOTAL ASSET BACKED SECURITIES
(Cost $126,026) 124,745
--------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 16.8%
Credit Suisse First Boston
Mortgage Securities,
Series 1997-C1, Class A1C
7.240% 04/20/07 7,500 7,375
GE Capital Mortgage,
Series 1999-1, Class A1
6.500% 01/25/29 6,940 6,381
GMAC Commercial Mortgage
Securities, Series 1997-C1, Class X
1.640% 07/15/27 17,754 1,404
Housing Securities,
Series 1993-G, Class G9
7.500% 01/25/09 4,205 4,239
Morgan Stanley Capital I,
Series 1999-FNV1, Class A2
6.530% 03/15/32 13,000 12,324
PNC Trust, Series 1998-7, Class A5
6.750% 09/25/28 2,997 2,803
Prudential Home Mortgage
Securities, Series 1996-7, Class A4
6.750% 06/25/11 1,500 1,441
Prudential Securities
Secured Financing,
Series 1998-C1, Class A1A3
6.350% 09/15/07 10,090 9,563
Prudential Securities Secured
Financing, Series 1999-NRF1,
Class A2
6.480% 01/15/09 7,460 7,063
Residential Accredit Loans,
Series 1998-QS7, Class NB4
6.750% 07/25/28 13,684 12,838
Residential Accredit Loans,
Series 1999-QS3, Class A8
6.500% 03/25/29 16,797 15,467
See Accompanying Notes
48
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- --------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- CONTINUED
Residential Funding Mortgage
Securities I, Series 1993-S44,
Class A3 (A)
5.990% 11/25/23 $ 2,111 $ 2,115
Residential Funding Mortgage
Securities I, Series 1998-S13,
Class A21
6.750% 06/25/28 6,170 5,670
Structured Asset Sales,
Series 1994-5, Class A
7.000% 07/25/24 21,331 20,453
Vende Mortgage Trust,
Series 1999-3, Class D
6.500% 06/15/15 8,650 8,096
--------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(Cost $122,238) 117,232
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 25.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 3.3%
Pool # 219329
9.250% 12/01/02 46 48
Pool # E31059
8.500% 05/01/06 62 64
Pool # E00164
6.500% 10/01/07 302 296
Pool # 252804
8.500% 07/01/08 61 64
Pool # E50893
6.500% 09/01/08 752 742
Series C - 78
9.400% 09/15/08 19 19
Pool # E60894
7.500% 07/01/10 26 26
Pool # E61277
7.500% 09/01/10 110 112
Pool # E20204
6.500% 11/01/10 506 497
Pool # E61976
7.000% 11/01/10 3,590 3,585
Pool # E20206
7.500% 11/01/10 138 140
Pool # E64179
7.500% 05/01/11 293 297
Pool # E64198
7.500% 05/01/11 160 162
Pool # E64229
7.500% 05/01/11 9 9
Pool # E64248
7.500% 05/01/11 620 630
Par Value
Maturity (000) (000)
-------- ------- --------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL HOME LOAN MORTGAGE CORPORATION -- CONTINUED
Pool # 280417
8.500% 09/01/16 $ 7 $ 7
Pool # 141138
7.500% 05/01/17 420 428
Pool # 294315
8.500% 06/01/17 14 15
Pool # 450074
8.500% 06/01/17 169 178
Pool # 80322
8.000% 07/01/25 2,128 2,173
Pool # 483469
6.500% 09/15/28 5,827 5,549
Pool # C18271
7.000% 11/01/28 7,817 7,660
--------
22,701
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 14.9%
Series 1-C
9.250% 11/15/01 712 731
Pool # 77831
7.500% 12/01/07 110 111
Pool # 31592
7.500% 03/01/08 93 94
Pool # 190506
6.500% 12/01/08 900 888
FNMA (A)
6.375% 06/15/09 3,140 3,047
Pool # 1125
9.000% 07/01/09 37 39
Pool # 35366
8.500% 11/01/09 70 72
Pool # 316357
7.000% 07/01/10 1,001 1,000
Pool # 210452
9.500% 05/01/18 117 125
Pool # 250060
7.500% 06/01/24 4,137 4,159
Pool # 322344
7.500% 09/01/25 2,296 2,301
Pool # 250433
7.500% 01/01/26 4,253 4,261
Pool # 346316
7.500% 05/01/26 2,359 2,366
Pool # 407603
7.500% 12/01/27 1,028 1,028
Pool # 413863
7.500% 12/01/27 5,295 5,293
Pool # 420621
7.500% 12/01/27 3,964 3,961
See Accompanying Notes
49
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 417392
6.500% 02/01/28 $ 1,222 $ 1,168
Pool # 435082
6.000% 07/01/28 1,224 1,136
Pool # 440148
6.500% 08/01/28 996 951
Pool # 446109
7.500% 10/01/28 1,038 1,035
Pool # 448509
6.000% 11/01/28 4,786 4,486
Pool # C00690
6.000% 12/01/28 7,184 6,673
Pool # C18901
6.000% 12/01/28 1,962 1,822
Pool # 252162
6.500% 12/01/28 9,321 8,895
Pool # 252212
6.500% 01/01/29 3,481 3,321
Pool # 484693
6.000% 02/01/29 13,001 12,063
Pool # 484699
6.000% 02/01/29 17,586 16,316
Pool # 484731
6.000% 03/01/29 489 454
Pool # 492335
6.000% 05/01/29 10,858 10,071
Pool # 494724
6.500% 05/01/29 4,601 4,388
Pool # 513370
6.500% 08/01/29 4 4
Pool # 441542
7.500% 10/01/29 2,015 2,012
--------
104,271
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 7.7%
Pool # 22374
8.000% 03/15/08 81 83
Pool # 9244
8.250% 04/20/17 47 48
Pool # 9279
8.250% 07/20/17 104 107
Pool # 1388
9.000% 02/20/19 125 132
Pool # 164775
9.500% 06/15/19 64 69
Pool # 36473
8.500% 11/15/21 100 104
Par Value
Maturity (000) (000)
---------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 303442
8.500% 11/15/21 $ 12 $ 12
Pool # 308571
8.500% 05/15/21 80 83
Pool # 310780
8.500% 09/15/21 19 20
Pool # 314586
8.500% 11/15/21 166 173
Pool # 315728
8.500% 11/15/21 192 200
Pool # 319999
8.500% 07/15/22 102 106
Pool # 321786
8.500% 07/15/22 106 110
Pool # 332285
8.500% 07/15/22 141 147
Pool # 325399
7.500% 08/15/22 9 9
Pool # 321563
8.500% 08/15/22 32 34
Pool # 304732
7.500% 12/15/22 684 690
Pool # 337049
7.500% 04/15/23 357 360
Pool # 348665
7.500% 04/15/23 231 233
Pool # 337062
7.500% 05/15/23 234 235
Pool # 331869
7.500% 06/15/23 248 249
Pool # 371437
7.000% 11/15/23 177 174
Pool # 483453
6.500% 09/15/28 5,641 5,371
Pool # 486516
6.500% 09/15/28 8,626 8,213
Pool # 482829
6.500% 11/15/28 8,488 8,082
Pool # 498652
6.500% 04/15/29 2,417 2,301
Pool # 480525
7.000% 06/15/29 1,857 1,817
Pool # 502768
7.500% 09/01/29 2,951 2,949
Pool # 505842
7.500% 09/15/29 2,995 2,992
See Accompanying Notes
50
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 507382
7.500% 09/15/29 $ 5,027 $ 5,023
Pool # 510422
7.500% 09/15/29 10,065 10,055
Pool # 481632
7.500% 11/15/29 3,710 3,707
--------
53,888
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $187,362) 180,860
--------
U.S. TREASURY OBLIGATIONS -- 12.5%
U.S. Treasury Notes
6.250% 10/31/01 6,755 6,787
6.500% 05/15/05 2,880 2,919
6.125% 08/15/07 9,630 9,539
TIPS
3.875%# 01/15/09 15,201 14,893
3.625% 04/15/28 19,699 18,038
--------
U.S. TREASURY BONDS
6.250% 08/15/23 36,570 35,382
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $90,437) 87,558
--------
CASH EQUIVALENT -- 0.3%
Goldman Sachs Financial Square
Government Money Market Fund 2,408 2,408
--------
TOTAL CASH EQUIVALENT
(Cost $2,408) 2,408
--------
TOTAL INVESTMENTS -- 99.5%
(Cost $718,804) $696,414
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.5% 3,262
--------
Value
(000)
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
71,771,666 outstanding shares
of beneficial interest $733,431
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
348,386 outstanding shares
of beneficial interest 3,561
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
68,807 outstanding shares
of beneficial interest 719
Accumulated net realized loss on investments (15,654)
Net unrealized depreciation on investments (22,390)
Undistributed net investment income 9
--------
TOTAL NET ASSETS -- 100.0% $699,676
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $9.69
========
NET ASSET VALUE, AND REDEMPTION
PRICE PER SHARE-- CLASS A $9.71
========
MAXIMUM PUBLIC OFFERING PRICE
PER SHARE -- CLASS A ($9.71 / 95.25%) $10.12
========
NET ASSET VALUE, AND OFFERING
PRICE PER SHARE -- CLASS B $9.70
========
- ------------------------------------------------
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
(B) PRIVATE PLACEMENT SECURITY
(C) INTEREST ONLY SECURITY
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
TBA -- TO BE ANNOUNCED
TIPS -- TREASURY INFLATION PROTECTED SECURITY
See Accompanying Notes
51
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA BOND FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999 1998
----------------------------- ----------------------------- ------------------------------
Class I Class A Class B Class I Class A Class B Class I Class A Class B2
-------- ------- ------- -------- ------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 9.96 $ 9.98 $ 9.97 $ 10.27 $ 10.27 $ 10.26 $ 10.02 $ 10.02 $10.35
-------- ------- ------- -------- ------- ------- -------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.30 0.29 0.25 0.56 0.54 0.47 0.59 0.56 0.47
Net gain/(loss) on securities
(realized and unrealized) (0.27) (0.28) (0.27) (0.17) (0.15) (0.15) 0.25 0.25 (0.09)
-------- ------- ------- -------- ------- ------- -------- ------- ------
Total from investment
operations 0.03 0.01 (0.02) 0.39 0.39 0.32 0.84 0.81 0.38
-------- ------- ------- -------- ------- ------- -------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.30) (0.28) (0.25) (0.56) (0.54) (0.47) (0.59) (0.56) (0.47)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.14) (0.14) (0.14) (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) (0.00)
-------- ------- ------- -------- ------- ------- -------- ------- ------
Total distributions (0.30) (0.28) (0.25) (0.70) (0.68) (0.61) (0.59) (0.56) (0.47)
-------- ------- ------- -------- ------- ------- -------- ------- ------
Net asset value, end of period $ 9.69 $ 9.71 $ 9.70 $ 9.96 $ 9.98 $ 9.97 $ 10.27 $ 10.27 $10.26
======== ======= ======= ======== ======= ======= ======== ======= ======
TOTAL RETURN 0.86%5 0.74%1,5 0.49%1,5 3.82% 3.77%1 3.06%1 8.55% 8.29%1 8.36%1,4
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $695,625 $ 3,384 $ 667 $758,713 $ 2,804 $ 725 $132,620 $ 161 $ 1
Ratio of expenses to average
net assets 0.74%4 0.99%4 1.70%4 0.70% 0.96% 1.66% 0.80% 1.05% 1.74%4
Ratio of net investment income to
average net assets 6.04%4 5.79%4 5.08%4 5.44% 5.18% 4.48% 5.72% 5.52% 2.71%4
Ratio of expenses to averagenet
assets before fee waivers 0.74%4 0.99%4 1.70%4 0.70% 0.96% 1.66% 0.80% 1.05% 1.74%4
Ratio of net investment income to
average netassets before
fee waivers 6.04%4 5.79%4 5.08%4 5.44% 5.18% 4.48% 5.72% 5.52% 2.71%4
Portfolio turnover rate 62% 62% 62% 270% 270% 270% 220% 220% 220%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended For the For the For the
May 31, Period Year Period
1997 Ended Ended Ended
-------------------- May 31, April 30, April 30,
Class I3 Class A2 1996(3) 1996(3) 1995(3)
-------- -------- ------ -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 9.97 $ 9.97 $ 10.04 $ 10.02 $ 10.00
------- ------- ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.59 0.41 0.05 0.64 0.44
Net gain/(loss) on securities
(realized and unrealized) 0.13 0.13 (0.07) 0.07 0.02
------- ------- ------- ------- -------
Total from investment
operations 0.72 0.54 (0.02) 0.71 0.46
------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.59) (0.41) (0.05) (0.64) (0.44)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.05) (0.00)
Distributions in excess of net
realized capital gains (0.08) (0.08) (0.00) (0.00) (0.00)
------- ------- ------- ------- -------
Total distributions (0.67) (0.49) (0.05) (0.69) (0.44)
------- ------- ------- ------- -------
Net asset value, end of period $ 10.02 $ 10.02 $ 9.97 $ 10.04 $ 10.02
------- ------- ------- ------- -------
TOTAL RETURN 7.41% 7.22%1,4 (0.19)%1,5 7.09%1 4.75%1,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $91,161 $ 23 $88,829 $89,901 $53,316
Ratio of expenses to average
net assets 0.83% 1.07%4 0.85%4 0.85% 0.85%4
Ratio of net investment income to
average net assets 5.83% 5.64%4 5.88%4 6.20% 6.17%4
Ratio of expenses to average net
assets before fee waivers 0.96% 1.07%4 1.25%4 1.25% 1.33%4
Ratio of net investment income to
average net assets before
fee waivers 5.71% 5.64%4 5.48%4 5.80% 5.69%4
Portfolio turnover rate 96% 96% 2% 94% 172%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS A AND CLASS B COMMENCED OPERATIONS ON SEPTEMBER 11, 1996 AND JANUARY 6,
1998, RESPECTIVELY.
3 ACTIVITY FOR THE PERIOD PRESENTED INCLUDES THAT OF A 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.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
52
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA ENHANCED INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
--------- ------- -------
CORPORATE BONDS -- 30.7%
BANKS -- 2.9%
First Chicago
10.250% 05/01/05 $ 900 $ 940
First Union
8.125% 06/24/02 1,400 1,440
------
2,380
------
BEAUTY PRODUCTS -- 2.1%
Dial del Note
6.625% 06/15/03 1,800 1,762
------
COMPUTER SOFTWARE -- 1.2%
Computer Associates
6.250% 04/15/03 1,025 989
------
CONSULTING SERVICES -- 1.3%
CSC Enterprises
6.500% 11/15/01 1,100 1,096
------
DEFENSE -- 1.3%
Raytheon
5.950% 03/15/01 1,100 1,083
------
ENVIRONMENTAL SERVICES -- 2.1%
Browning Ferris
6.080% 01/18/00 1,700 1,696
------
EURO BOND -- 2.2%
Hydro Quebec (A)
5.813% 07/31/02 1,850 1,832
------
FINANCIAL SERVICES -- 2.4%
Case Credit
6.120% 08/01/01 1,000 989
Ford Motor Credit
6.550% 09/10/02 1,000 991
------
1,980
------
INDUSTRIAL -- 0.7%
Monsanto-Esop
7.090% 12/15/00 600 601
------
LEASING & RENTING -- 1.4%
Comdisco
5.950% 04/30/02 1,235 1,195
------
PAPER & PAPER PRODUCTS -- 1.9%
Champion International
9.700% 05/01/01 1,500 1,551
------
REAL ESTATE INVESTMENT TRUSTS -- 5.6%
Franchise Financial America
7.000% 11/30/00 1,810 1,800
Par Value
Maturity (000) (000)
-------- ------- ------
CORPORATE BONDS -- CONTINUED
REAL ESTATE INVESTMENT TRUSTS -- CONTINUED
Prime Property Funding,
Series II (B)
6.800% 08/15/02 $1,000 $ 986
7.000% 08/15/04 840 821
Weingarten Realty
6.000% 08/10/01 1,000 989
-------
4,596
-------
RETAIL -- 1.6%
Limited, Callable
12/10/99 @100 (A)
6.381% 05/22/01 1,300 1,297
-------
TRANSPORTATION -- 1.8%
General American
Transportation
10.125% 03/15/02 1,400 1,488
-------
TRUCKING -- 2.1%
JB Hunt
6.000% 12/12/00 1,750 1,730
-------
TOTAL CORPORATE BONDS
(Cost $25,558) 25,276
-------
ASSET BACKED SECURITIES -- 43.0%
AESOP Funding, Series 1997-1,
Class A1
6.220% 10/20/01 915 906
Bombardier Capital Mortgage
Securitization,
Series 1999-B,
Class A3
7.180% 12/15/15 1,335 1,337
Capital Equipment,
Series 1997-1,
Class A4
6.190% 02/15/02 2,855 2,836
Champion Home
Equity Loan,
Series 1998-1,
Class A2
8.120% 09/25/01 6,000 786
Citibank Credit
Card Master Trust,
Series 1996-1,
Class A (C)
0.000% 02/07/03 1,260 1,166
Copelco Capital Funding,
Series 1997-A, Class A4
6.470% 04/20/05 2,490 2,466
Countrywide Home Loans,
Series 1997-8, Class A2
6.750% 01/25/28 2,910 2,903
See Accompanying Notes
53
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA ENHANCED INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
ASSET BACKED SECURITIES -- CONTINUED
Discover Card,
Series 1998-4A,
Class A
5.750% 10/16/03 $ 1,060 $ 1,030
Empire Funding,
Series1999-1,
Class A3
6.440% 04/25/13 1,500 1,463
Flagship Auto Receivables
Owner Trust,
Series 1999-2,
Class A3
6.835% 11/18/04 3,000 2,993
Green Tree Home Equity
Loan Trust,
Series 1999-D,
Class A-7
6.500% 09/15/30 50,000 4,193
Household Automobile
Revolving Trust I,
Series 1998-1 Cl A3 (A)
5.858% 07/17/03 1,250 1,240
Merrill Lynch Mortgage
Investors,
Series 1998-GN1,
Class A1
7.110% 08/25/27 21 20
Metlife Capital Equipment
Loan Trust,
Series 1997-A,
Class A
6.850% 05/20/08 910 908
New Century Home Equity
Loan Trust,
Series 1997-NC6,
Class A6
7.010% 05/25/26 1,500 1,482
Oakwood Mortgage,
Series 1997-B,
Class B
6.950% 08/15/27 2,000 1,992
Pegasus Aviation Lease
Securitization,
Series 1999-1,
Class A1 (B)
6.300% 03/25/29 1,378 1,336
PNC Student Loan
Trust I,
Series 1997-2,
Class A4
6.446% 01/25/02 915 914
Sears Credit
Account Master
Trust, Series 1996-4,
Class A
6.450% 10/16/06 790 785
Westo, Series 1999-A,
Class A4
5.700% 11/20/03 2,750 2,687
World Omni Automobile
Lease Securitization
Trust, Series 1997,
Class A3 (B)
5.962% 08/14/01 1,410 1,399
Par Value
Maturity (000) (000)
-------- ------- ------
ASSET BACKED SECURITIES -- CONTINUED
World Omni Automobile
Lease Securitization Trust,
Series 1997-A, Class A3
6.850% 06/25/03 $ 589 $ 594
-------
TOTAL ASSET BACKED SECURITIES
(Cost $35,807) 35,436
-------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 5.6%
Evans Withycombe,
Series 1, Class A
7.980% 08/01/01 1,395 1,435
Merrill Lynch Mortgage
Investors,
Series 1996-C1,
Class A1
7.150% 04/25/28 1,122 1,120
Residential Asset
Securitization
Trust, Series 1997-A1,
Class A1
7.000% 03/25/27 589 587
Vendee Mortgage Trust,
Series 1999-2, Class LJ
6.500% 01/15/06 1,500 1,464
-------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $4,664) 4,606
-------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 6.9%
Federal Home Loan Mortgage
Corporation #
6.250% 10/15/02 3,000 2,987
Federal National Mortgage
Association
Pool # 426798
7.500% 07/01/08 1,394 1,414
Federal National Mortgage
Association,
Series 1997-26, Class E
5.000% 11/18/20 1,008 997
Small Business Administration
Pool # 503115
9.225% 04/25/09 258 274
-------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $5,698) 5,672
-------
U.S. TREASURY OBLIGATIONS -- 11.1%
U.S. Treasury Note #
6.250% 10/31/01 5,200 5,223
5.750% 08/15/03 4,000 3,951
-------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $9,213) 9,174
-------
See Accompanying Notes
54
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA ENHANCED INCOME FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
(000) (000)
------- -------
CASH EQUIVALENT -- 0.8%
Fidelity Domestic Money Market
Fund $680 $ 680
-------
TOTAL CASH EQUIVALENT
(Cost $680) 680
-------
TOTAL INVESTMENTS -- 98.1%
(Cost $81,620) $80,844
=======
OTHER ASSETS AND LIABILITIES,
NET -- 1.9% 572
-------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
8,178,251 on outstanding shares
of beneficial interest 81,984
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
53,367 outstanding shares
of beneficial interest 546
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
14,090 outstanding shares
of beneficial interest 140
Accumulated net realized loss on investments (470)
Net unrealized depreciation on investments (776)
Overdistributed net investment income (8)
-------
TOTAL NET ASSETS -- 100.0% $81,416
=======
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $9.88
=======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $9.91
=======
MAXIMUM OFFERING PRICE PER
SHARE-- CLASS A ($9.91 / 97.25%) $10.19
=======
NET ASSET VALUE AND OFFERING PRICE
PER SHARE -- CLASS B $9.91
=======
- ------------------------------------------------
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999
(B) PRIVATE PLACEMENT SECURITY
(C) ZERO COUPON BOND
MTN -- MEDIUM TERM NOTE
See Accompanying Notes
55
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA ENHANCED INCOME FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999 1998
------------------------------- ------------------ -----------------
Class I Class A Class B2 Class I Class A Class I Class A
------- ------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.96 $ 9.99 $ 9.92 $ 10.06 $10.08 $ 9.99 $10.00
------- ------- ------- ------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.28 0.27 0.14 0.56 0.56 0.57 0.57
Net gain/(loss) on securities
(realized and unrealized) (0.08) (0.08) (0.08) (0.05) (0.05) 0.08 0.09
------- ------- ------- ------- ------ ------- ------
Total from investment operations 0.20 0.19 0.13 0.51 0.51 0.65 0.66
------- ------- ------- ------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.28) (0.27) (0.14) (0.56) (0.55) (0.57) (0.57)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) 0.00 0.00 (0.00) (0.00)
Distributions of net realized
capital gains (0.00) (0.00) (0.00) (0.05) (0.05) (0.01) (0.01)
------- ------- ------- ------- ------ ------- ------
Total distributions (0.28) (0.27) (0.14) (0.61) (0.60) (0.58) (0.58)
------- ------- ------- ------- ------ ------- ------
Net asset value, end of period $ 9.88 $ 9.91 $ 9.91 $ 9.96 $ 9.99 $ 10.06 $10.08
======= ======= ======= ======= ====== ======= ======
TOTAL RETURN 2.29%6 2.27%1,6 1.47%1,6 5.14% 4.94%1,6 6.68% 6.68%1,6
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $80,751 $ 526 $ 139 $72,291 $ 550 $71,888 $ 559
Ratio of expenses to average net assets 0.48%5 0.58%5 1.33%5 0.43%5 0.53% 0.33% 0.41%
Ratio of net investment income to
average net assets 5.61%5 5.51%5 4.76%5 5.49%5 5.39% 5.69% 5.65%
Ratio of expenses to average net assets
before fee waivers 0.58%5 0.68%5 1.43%5 0.65%5 0.75% 0.69% 0.80%
Ratio of net investment income to
average net assets before
fee waivers 5.51%5 5.41%5 4.66%5 4.66%5 5.17% 5.33% 5.26%
Portfolio turnover rate 52% 52% 52% 190% 190% 135% 135%
</TABLE>
<TABLE>
<CAPTION>
For the Period
For the Year Ended May 31, Ended May 31,
1997 1996 1995
----------------- ----------------- -----------------
Class I Class A Class I Class A Class I2 Class A2
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.01 $10.02 $ 10.16 $10.18 $ 10.00 $10.10
-------- ------ ------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.58 0.57 0.58 0.56 0.51(4) 0.43(4)
Net gain/(loss) on securities
(realized and unrealized) 0.01 0.01 (0.05) (0.05) 0.06 0.06
-------- ------ ------- ------ ------- ------
Total from investment operations 0.59 0.58 0.53 0.51 0.57 0.49
-------- ------ ------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.58) (0.57) (0.58) (0.56) (0.41) (0.41)
Dividends in excess of net
investment income (0.00) (0.00) (0.10) (0.11) (0.00) (0.00)
Distributions of net realized
capital gains (0.03) (0.03) (0.00) (0.00) (0.00) (0.00)
-------- ------ ------- ------ ------- ------
Total distributions (0.61) (0.60) (0.68) (0.67) (0.41) (0.41)
-------- ------ ------- ------ ------- ------
Net asset value, end of period $ 9.99 $10.00 $ 10.01 $10.02 $ 10.16 $10.18
======== ====== ======= ====== ======= ======
TOTAL RETURN 6.02% 5.91%1,6 5.36% 5.13%1,6 6.54%1,3 6.84%1,3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 61,031 $2,051 $66,918 $1,718 $60,467 $2,547
Ratio of expenses to average net assets 0.21% 0.31% 0.23% 0.33% 0.21%5 0.32%5
Ratio of net investment income to
average net assets 5.74% 5.63% 5.72% 5.55% 5.70%5 5.89%5
Ratio of expenses to average net assets
before fee waivers 0.66% 0.75% 0.70% 0.80% 0.71%5 0.79%5
Ratio of net investment income to
average net assets before
fee waivers 5.29% 5.18% 5.25% 5.08% 5.20%5 5.42%5
Portfolio turnover rate 225% 225% 98% 98% 36% 36%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON JULY 7, 1994, SEPTEMBER
9, 1994 AND AUGUST 11, 1999, RESPECTIVELY.
3 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.
4 CALCULATION BASED UPON AVERAGE SHARES OUTSTANDING.
5 ANNUALIZED.
6 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN
ANNUALIZED.
See Accompanying Notes
56
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA GNMA FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 88.6%
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 2.3%
Pool # 397814
6.500% 12/01/12 $ 1,446 $ 1,428
Pool # 408074
6.500% 12/01/12 136 133
Pool # 417392
6.500% 02/01/28 899 860
-------
2,421
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 86.3%
Pool # 5147
7.250% 11/15/04 91 91
Pool # 90069
9.000% 05/15/09 43 46
Pool # 90223
9.000% 05/15/09 37 39
Pool # 90250
9.000% 05/15/09 60 63
Pool # 90332
9.000% 05/15/09 30 32
Pool # 90626
9.000% 05/15/09 31 33
Pool # 90923
9.000% 05/15/09 79 83
Pool # 90337
9.000% 06/15/09 45 47
Pool # 419305
7.000% 12/15/10 1,063 1,065
Pool # 780807
7.000% 06/15/11 1,768 1,772
Pool # 162246
9.000% 06/15/16 19 20
Pool # 608
9.000% 08/20/16 749 787
Pool # 200669
8.500% 01/15/17 80 83
Pool # 183426
8.500% 02/15/17 66 69
Pool # 206979
8.500% 02/15/17 35 37
Pool # 210565
8.000% 03/15/17 12 12
Pool # 203154
8.500% 03/15/17 60 63
Pool # 212306
8.500% 03/15/17 60 63
Pool # 208540
8.000% 04/15/17 49 50
Pool # 202955
8.500% 04/15/17 54 57
Pool # 228869
8.500% 04/15/17 732 763
Par Value
Maturity (000) (000)
-------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 199649
8.000% 05/15/17 $ 23 $ 23
Pool # 202671
8.000% 05/15/17 17 17
Pool # 216632
8.500% 05/15/17 40 42
Pool # 209632
9.000% 05/15/17 49 52
Pool # 220950
9.000% 06/15/17 289 307
Pool # 213458
8.000% 07/15/17 30 31
Pool # 231935
9.000% 08/15/17 92 98
Pool # 780048
8.500% 11/15/17 226 234
Pool # 289354
9.000% 07/15/20 111 118
Pool # 248132
8.500% 06/15/21 106 111
Pool # 300698
9.000% 06/15/21 195 208
Pool # 301286
8.500% 04/15/21 116 121
Pool # 302597
8.500% 05/15/21 15 15
Pool # 312919
8.500% 11/15/21 266 277
Pool # 314292
8.500% 11/15/21 120 125
Pool # 316989
8.500% 12/15/21 82 85
Pool # 303772
8.500% 02/15/22 97 101
Pool # 327085
7.500% 05/15/22 19 20
Pool # 333977
7.500% 09/15/22 44 44
Pool # 334116
7.500% 10/15/22 195 197
Pool # 336541
7.500% 10/15/22 16 16
Pool # 320229
7.500% 12/15/22 170 171
Pool # 340307
7.500% 02/15/23 176 177
Pool # 4280
8.500% 02/15/23 1,696 1,768
Pool # 329620
7.500% 04/15/23 1,950 1,964
See Accompanying Notes
57
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA GNMA FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 348778
7.500% 04/15/23 $ 221 $ 223
Pool # 352189
7.500% 04/15/23 14 14
Pool # 352217
7.500% 04/15/23 3,541 3,567
Pool # 340792
7.500% 05/15/23 18 18
Pool # 354106
7.500% 05/15/23 28 28
Pool # 338766
7.500% 06/15/23 217 219
Pool # 266878
7.500% 07/15/23 302 304
Pool # 352143
7.500% 07/15/23 16 17
Pool # 352144
7.500% 07/15/23 207 209
Pool # 353185
7.500% 07/15/23 2,793 2,791
Pool # 359600
7.500% 07/15/23 55 55
Pool # 364258
7.500% 07/15/23 88 88
Pool # 352724
7.500% 08/15/23 106 107
Pool # 357235
7.500% 10/15/23 426 429
Pool # 358845
7.500% 10/15/23 135 136
Pool # 362619
7.500% 10/15/23 290 292
Pool # 370019
7.500% 10/15/23 86 87
Pool # 358308
7.500% 01/15/24 192 193
Pool # 374876
7.500% 01/15/24 185 186
Pool # 369696
7.500% 02/15/24 135 136
Pool # 388741
7.500% 04/15/24 167 168
Pool # 384077
8.000% 04/15/24 438 449
Pool # 385654
8.000% 04/15/24 551 564
Pool # 353023
7.500% 06/15/24 187 188
Pool # 371816
7.500% 06/15/24 88 88
Par Value
Maturity (000) (000)
-------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 32767
9.000% 11/15/24 $ 1,392 $ 1,482
Pool # 412760
8.750% 06/15/25 146 153
Pool # 412663
8.000% 09/15/26 2,259 2,309
Pool # 780618
8.000% 08/15/27 1,285 1,310
Pool # 427794
7.000% 01/15/28 5,315 5,191
Pool # 478016
6.500% 06/15/28 1,418 1,350
Pool # 462641
6.000% 07/15/28 2,885 2,665
Pool # 433881
6.500% 07/15/28 313 298
Pool # 450934
6.500% 07/15/28 623 593
Pool # 466002
6.500% 07/15/28 685 652
Pool # 476113
6.500% 07/15/28 1,942 1,849
Pool # 480411
6.500% 07/15/28 594 566
Pool # 480412
6.500% 07/15/28 549 523
Pool # 480451
6.500% 07/15/28 2,189 2,084
Pool # 446699
6.000% 08/15/28 1,478 1,365
Pool # 465549
6.500% 08/15/28 1,563 1,488
Pool # 486468
7.000% 08/15/28 3,595 3,511
Pool # 2673
6.500% 11/20/28 3,383 3,206
Pool # 469795
7.000% 12/15/28 2,741 2,685
Pool # 464488
6.000% 01/15/29 3,986 3,682
Pool # 483887
6.000% 01/15/29 1,999 1,847
Pool # 495838
7.000% 01/15/29 2,865 2,805
Pool # 464628
6.500% 03/15/29 3,989 3,798
Pool # 501561
6.500% 03/15/29 2,456 2,339
Pool # 472946
6.500% 05/15/29 2,486 2,367
See Accompanying Notes
58
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA GNMA FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- CONTINUED
Pool # 480525
7.000% 06/15/29 $ 3,714 $ 3,634
Pool # 506302
6.500% 07/15/29 2,000 1,904
Pool # 468370
6.500% 07/15/29 998 950
Pool # 514262
6.500% 07/15/29 1,751 1,667
Pool # 518121
7.000% 09/15/29 2,997 2,931
Pool # 505842
7.500% 09/15/29 3,410 3,406
Pool # 510422
7.500% 09/15/29 3,495 3,491
-------
90,254
-------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS
(Cost $94,522) 92,675
-------
ASSET BACKED SECURITIES -- 1.0%
The Money Store
Home Equity Trust,
Series 1998-A,
Class AV (A)
5.610% 06/15/29 1,062 1,061
-------
TOTAL ASSET BACKED SECURITIES
(Cost $1,062) 1,061
-------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 6.7%
BA Mortgage Securities,
Series 1997-2, Class A6
7.250% 10/25/27 2,139 2,087
Credit Suisse First
Boston Mortgage
Securities, Series 1997-C1,
Class A1C
7.240% 04/20/07 1,100 1,082
GE Capital Mortgage,
Series 1999-1, Class A1
6.500% 01/25/29 1,126 1,036
Residential Funding
Mortgage
Securities I,
Series 1992-S31,
Class A5
7.500% 09/25/07 2,111 2,115
Residential Funding
Mortgage Securities I,
Series 1998-S13,
Class A21
6.750% 06/25/28 730 671
-------
Par Value
Maturity (000) (000)
-------- ------- -------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $7,309) $ 6,991
--------
U.S. TREASURY OBLIGATIONS -- 1.0%
U.S. Treasury Note
6.250% 10/31/01 $ 1,000 1,005
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,011) 1,005
--------
CASH EQUIVALENT -- 2.6%
Goldman Sachs Financial Square
Government Money Market Fund 2,754 2,754
--------
TOTAL CASH EQUIVALENT
(Cost $2,754) 2,754
--------
TOTAL INVESTMENTS -- 99.9%
(Cost $106,658) $104,486
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.1% 145
--------
NET ASSETS:
Portfolio shares of Class I (unlimited
authorization -- no par value) based on
10,444,645 shares of beneficial
interest 106,054
Portfolio shares of Class A (unlimited
authorization -- no par value) based
on 12,974 shares of beneficial interest 1,291
Portfolio Shares of Class B (unlimited
authorization -- no par value) based
on 7,848 shares of beneficial interest 78
Accumulated net realized loss on investments (607)
Net unrealized depreciation on investments (2,172)
Overdistributed net investment income (13)
--------
TOTAL NET ASSETS -- 100.0% $104,631
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $9.89
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $9.90
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($9.90 / 95.25%) $10.39
========
NET ASSET VALUE & OFFERING PRICE
PER SHARE -- CLASS B $9.90
========
- ------------------------------------------------
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
See Accompanying Notes
59
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA GNMA FUND
For a Portfolio Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999 1998
----------------------------- ----------------- -----------------
Class I Class A Class B2 Class I Class A Class I Class A
-------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.10 $ 10.10 $ 9.87 $ 10.36 $ 10.36 $ 10.15 $10.15
-------- ------- ----- ------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.29 0.28 0.14 0.61 0.59 0.61 0.58
Net gain/(loss) on securities
(realized and unrealized) (0.21) (0.20) 0.03 (0.20) (0.20) 0.31 0.31
-------- ------- ----- ------- ------ ------- ------
Total from investment operations 0.08 0.08 0.17 0.41 0.39 0.92 0.89
-------- ------- ----- ------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment income (0.29) (0.28) (0.14) (0.60) (0.58) (0.61) (0.58)
Dividends from net realized capital gains (0.00) (0.00) (0.00) (0.07) (0.07) (0.10) (0.10)
Distributions in excess of net
realized capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
-------- ------- ----- ------- ------ ------- ------
Total distributions (0.29) (0.28) (0.14) (0.67) (0.65) (0.71) (0.68)
-------- ------- ----- ------- ------ ------- ------
Net asset value, end of period $ 9.89 $ 9.90 $ 9.90 $ 10.10 $ 10.10 $ 10.36 $10.36
======== ======= ======= ======= ======= ======= ======
TOTAL RETURN 1.35%5 1.33%1,5 2.90%1,5 4.02% 3.77%1 9.17% 8.90%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $103,326 $ 1,227 $ 78 $96,808 $1,497 $83,624 $ 549
Ratio of expenses to average net assets 0.77%4 1.02%4 1.77%4 0.78% 1.03% 0.84% 1.09%
Ratio of net investment income to
average net assets 5.88%4 5.63%4 4.88%4 5.92% 5.67% 5.83% 5.54%
Ratio of expenses to average net assets
before fee waivers 0.77%4 1.02%4 1.69%4 0.78% 1.03% 0.84% 1.09%
Ratio of net investment income to average
net assets before fee waivers 5.88%4 5.63%4 1.77%4 5.92% 5.67% 5.83% 5.54%
Portfolio turnover rate 42% 42% 42% 85% 85% 291% 291%
</TABLE>
<TABLE>
<CAPTION>
For the Year For the For the For the
Ended May 31, Period Year Period
1997 Ended Ended Ended
----------------- May 31, April 30, April 30,
Class I3 Class A2 1996(3) 1996(3) 1995(3)
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.03 $10.02 $ 10.12 $ 10.16 $ 10.00
------- ------ ------- ------- -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.65 0.45 0.05 0.66 0.48
Net gain/(loss) on securities
(realized and unrealized) 0.22 0.23 (0.09) 0.14 0.16
------- ------ ------- ------- -------
Total from investment operations 0.87 0.68 (0.04) 0.80 0.64
------- ------ ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.65) (0.45) (0.05) (0.66) (0.48)
Dividends from net realized capital gains (0.01) (0.01) (0.00) (0.18) (0.00)
Distributions in excess of net
realized capital gains (0.09) (0.09) (0.00) (0.00) (0.00)
------- ------ ------- ------- -------
Total distributions (0.75) (0.55) (0.05) (0.84) (0.48)
------- ------ ------- ------- -------
Net asset value, end of period $ 10.15 $10.15 $ 10.03 $ 10.12 $ 10.16
======= ====== ======= ======= =======
TOTAL RETURN 9.03% 8.83%1,4 (0.35)%1,5 7.97%1 6.61%4,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $64,501 $ 128 $60,532 $62,161 $42,212
Ratio of expenses to average net assets 0.86% 1.12%4 0.85%1 0.85% 0.85%4
Ratio of net investment income to
average net assets 6.45% 6.17%4 6.33%1 6.30% 6.68%4
Ratio of expenses to average net assets
before fee waivers 1.01% 1.12%4 1.28%1 1.29% 1.40%4
Ratio of net investment income to average
net assets before fee waivers 6.30% 6.17%4 5.90%1 5.86% 6.13%4
Portfolio turnover rate 57% 57% 1% 149% 226%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS A AND CLASS B COMMENCED OPERATIONS ON SEPTEMBER 11, 1996 AND AUGUST 11,
1999 RESPECTIVELY.
3 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.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
60
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERMEDIATE BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- --------
CORPORATE BONDS -- 37.5%
BANKS -- 2.8%
First Maryland Bancorp
7.200% 07/01/07 $ 2,500 $ 2,463
First Union
6.950% 11/01/04 3,375 3,354
HSBC Holding
7.500% 07/15/09 1,580 1,584
Huntington National
7.625% 01/15/03 500 506
Northern Trust
7.300% 09/15/06 500 499
--------
8,406
--------
CHEMICALS -- 1.2%
Lubrizol
5.875% 12/01/08 4,000 3,580
Monsanto (B)
5.375% 12/01/01 1,175 1,146
--------
4,726
--------
COMPUTER SOFTWARE -- 1.5%
Computer Associates
6.250% 04/15/03 5,970 5,761
--------
DRUGS & HEALTH CARE -- 0.2%
Amgen
6.210% 08/27/03 500 473
--------
FINANCIAL SERVICES -- 5.8%
Ford Motor Credit Global
6.700% 07/16/04 2,550 2,521
GMAC
7.125% 05/01/03 5,000 5,025
Goldman Sachs
6.650% 05/15/09 5,120 4,826
Ikon Capital
6.730% 06/15/01 5,000 4,913
US Leasing Capital
6.625% 05/15/03 300 297
--------
17,582
--------
GAS & NATURAL GAS -- 0.8%
Northen Illinois
6.450% 08/01/01 1,500 1,496
Williams Companies
6.200% 08/01/02 820 798
--------
2,294
--------
INSURANCE -- 0.1%
Saint Paul
6.170% 01/15/01 300 298
--------
LEASING & RENTING -- 1.0%
Comdisco
6.000% 01/30/02 3,200 3,108
--------
Par Value
Maturity (000) (000)
------------- ----- -------
CORPORATE BONDS -- CONTINUED
LEISURE & RECREATIONAL PRODUCTS -- 1.0%
Brunswick
6.750% 12/15/06 $ 3,150 $ 2,985
--------
MACHINERY -- 0.6%
Cummins Engine
6.450% 03/01/05 2,100 1,985
--------
MISCELLANEOUS BUSINESS SERVICES -- 1.1%
Sun Microsystems
7.000% 08/15/02 3,325 3,329
--------
MISCELLANEOUS CONSUMER SERVICES -- 1.7%
Service Corporate, International
6.375% 10/01/00 5,245 5,107
--------
PETROLEUM REFINING -- 1.8%
Sun Petroleum
7.125% 03/15/04 5,490 5,394
--------
PRINTING & PUBLISHING -- 1.2%
Scholastic
7.000% 12/15/03 3,600 3,537
--------
REAL ESTATE INVESTMENT TRUST -- 9.0%
Bradley Operating Partnership
7.000% 11/15/04 1,200 1,141
Commercial Net
Lease Realty
8.125% 06/15/04 2,000 1,963
EOP Operating
6.625% 02/15/05 3,190 3,015
Federal Realty
Investors Trust
6.990% 03/10/06 1,550 1,419
Gables Realty
6.800% 03/15/05 5,025 4,747
Mack-Cali Realty
7.000% 03/15/04 5,150 4,989
New Plan Excel
Realty Trust
6.875% 10/15/04 3,670 3,592
Prime Property Funding,
Series II (B)
6.800% 08/15/02 5,000 4,932
United Dominion
Realty Trust
7.730% 04/05/05 1,600 1,547
--------
27,345
--------
REPAIR SERVICES -- 1.6%
Hertz
7.000% 05/01/02 1,000 1,004
Ryder System
6.600% 11/15/05 4,000 3,780
--------
4,784
--------
RUBBER & PLASTIC -- 1.6%
Armstrong World
6.350% 08/15/03 4,965 4,816
--------
STEEL & STEEL WORKS -- 1.8%
Worthington Industries
7.125% 05/15/06 5,605 5,444
--------
See Accompanying Notes
61
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERMEDIATE BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
------------- ----- --------
CORPORATE BONDS -- CONTINUED
TAXABLE MUNICIPAL OBLIGATION -- 0.1%
Westview School (C)
6.400% 09/01/05 $ 200 $ 192
--------
TELEPHONE & TELECOMMUNICATION -- 1.3%
AT&T
5.625% 03/15/04 4,085 3,901
--------
TRUCKING -- 1.0%
JB Hunt
6.000% 12/12/00 3,200 3,164
--------
TOTAL CORPORATE BONDS
(Cost $117,787) 114,631
--------
ASSET BACKED SECURITIES -- 22.1%
Amresco Securitized Net Interest
Margin, Series 1999-1A, Class A
9.100% 09/27/29 3,579 3,498
Bombardier Capital Mortgage
Securitization, Series 1999-B,
Class A3
7.180% 12/15/15 4,000 4,005
Case Equipment Loan Trust,
Series 1998-C, Class A4
5.610% 04/15/05 7,950 7,751
Contimortgage Home Equity
Loan Trust, Series 1998-2,
Class A6
6.360% 11/15/19 3,575 3,455
Contimortgage Home Equity
Loan Trust, Series 1999-3,
Class A5
7.360% 10/25/26 4,550 4,489
IMC Home Equity Loan Trust,
Series 1997-7, Class A5
6.760% 10/20/20 4,220 4,172
Oakwood Mortgage Investors,
Series 1997-D, Class A3
6.500% 02/15/28 5,000 4,948
Pegasus Aviation Lease
Securitization, Series 1999-1,
Class A1 (B)
6.300% 03/25/29 2,370 2,298
Pennsylvania Power & Light,
Series 1999-1, Class A7
7.050% 06/25/09 4,750 4,795
Providian National Bank
Mortgage Trust, Series 1999-2,
Class A
6.600% 04/16/07 4,800 4,794
Residential Asset Securities,
Series 1999-KS3, Class AI5
7.570% 03/25/28 6,420 6,419
Par Value
Maturity (000) (000)
------------- -------- ------
ASSET BACKED SECURITIES -- CONTINUED
Residential Funding Collateralized
Mortgage Obligation,
Series 1999-HI6, Class A3
7.340% 08/25/12 $ 3,250 $ 3,243
Residential Funding Mortgage
Services, Series 1999-HI1,
Class A3
6.310% 08/25/13 7,800 7,677
The Money Store Home Equity
Trust, Series 1993-C, Class A3
5.750% 10/15/22 3,306 3,191
UCFC Manufactured Housing
Contract, Series 1997-3, Class A2
6.360% 02/15/11 2,818 2,821
--------
TOTAL ASSET BACKED SECURITIES
(Cost $68,368) 67,556
--------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 11.0%
Credit Suisse First Boston
Mortgage Securities,
Series 1997-C1, Class A1C
7.240% 04/20/07 3,000 2,950
GE Capital Mortgage,
Series 1999-1, Class A1
6.500% 01/25/29 3,034 2,789
Housing Securities,
Series 1994-I, Class A15
7.500% 03/25/09 3,168 3,197
Merrill Lynch Mortgage
Investors, Series 1996-C1,
Class A1
7.150% 04/25/28 3,293 3,289
Norwest Asset Securities,
Series 1998-18, Class A4
6.250% 08/25/28 6,380 5,757
Prudential Home Mortgage
Securities, Series 1996-7,
Class A4
6.750% 06/25/11 2,500 2,401
Prudential Securities Secured
Financing, Series 1999-NRF1,
Class A2
6.480% 01/15/09 6,650 6,296
Residential Funding Mortgage
Security, I Series 1999-S12,
Class A11
6.500% 05/25/29 3,210 3,065
Vende Mortgage Trust,
Series 1999-2, Class ID
6.500% 12/15/24 4,220 3,949
--------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $34,734) 33,693
--------
See Accompanying Notes
62
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA INTERMEDIATE BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
------------- ----- -------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.7%
FEDERAL HOME LOAN BANK -- 0.5%
5.860% 08/03/01 $ 95 $ 94
6.565% 01/10/03 500 498
6.135% 12/23/04 1,000 980
--------
1,572
--------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 1.0%
Pool # 16-0015
8.250% 06/01/06 17 18
Series T-8, Class A5
7.000% 06/15/15 2,970 2,957
--------
2,975
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 5.4%
Fannie Mae #
6.250% 11/15/02 2,000 1,992
Fannie Mae
5.625% 05/14/04 4,460 4,296
Fannie Mae, MTN,
Callable 4/14/00 @ 100
7.340% 04/14/04 1,000 997
Pool # 493767
6.500% 06/01/14 6,861 6,713
Pool # 412232
6.500% 01/01/28 2,553 2,442
--------
16,440
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 1.9%
Pool #154047
9.000% 05/15/16 32 34
Pool #472969
6.500% 06/15/29 5,941 5,657
--------
5,691
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $27,112) 26,678
--------
U.S. TREASURY OBLIGATIONS -- 18.9%
U.S. Treasury Note #
6.250% 10/31/01 8,045 8,083
6.250% 02/15/03 3,000 3,014
6.500% 05/15/05 14,965 15,169
6.125% 08/15/07 19,655 19,469
U.S. Treasury Note TIPS
3.625% # 01/15/08 5,186 4,999
3.875% # 01/15/09 6,080 5,957
3.625% 04/15/28 1,037 949
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $58,272) 57,640
--------
Par Value
(000) (000)
-------- -------
CASH EQUIVALENT -- 0.8%
Fidelity Domestic Money Market
Fund $ 2,395 $ 2,395
--------
TOTAL CASH EQUIVALENT
(Cost $2,395) 2,395
--------
TOTAL INVESTMENTS -- 99.1%
(Cost $308,668) $302,593
OTHER ASSETS AND LIABILITIES,
NET -- 0.9% 2,838
--------
NET ASSETS:
Portfolio Shares of Class I
(unlimited authorization -- no par
value) based on 29,344,786
outstanding shares of beneficial
interest 310,348
Portfolio Shares of Class A
(unlimited authorization -- no par
value) based on 477,565
outstanding shares
of beneficial interest 5,305
Portfolio Shares of Class B
(unlimited authorization -- no
par value) based on
60,572 outstanding shares
of beneficial interest 649
Accumulated net realized loss
on investments (4,881)
Net unrealized depreciation on investments (6,075)
Undistributed net investment income 85
--------
TOTAL NET ASSETS -- 100.0% $305,431
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $10.22
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $10.24
--------
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.24 / 95.25%) $10.75
========
NET ASSET VALUE & OFFERING
PRICE PER SHARE -- CLASS B $10.24
========
- ------------------------------------------------
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER, 30 1999.
(B) PRIVATE PLACEMENT SECURITY
(C) CERTIFICATE OF PARTICIPATION
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
MTN -- MEDIUM TERM NOTE
TIPS -- TREASURY INFLATION PROTECTED SECURITY
See Accompanying Notes
63
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA INTERMEDIATE BOND FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999
----------------------------- ----------------------------
Class I Class A Class B Class I Class A Class B
--------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 10.39 $ 10.41 $ 10.41 $ 10.59 $ 10.63 $ 10.63
------- ------- ------- ------- ------- -------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.30 0.29 0.26 0.56 0.54 0.45
Net gain/(loss) on securities
(realized and unrealized) (0.17) (0.17) (0.18) (0.14) (0.16) (0.15)
------- ------- ------- ------- ------- -------
Total from investment operations 0.13 0.12 0.08 0.42 0.38 0.30
------- ------- ------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.30) (0.29) (0.25) (0.56) (0.54) (0.46)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.06) (0.06) (0.06)
Distributions in excess of
net realized capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
------- ------- ------- ------- ------- -------
Total distributions (0.30) (0.29) (0.25) (0.62) (0.60) (0.52)
------- ------- ------- ------- ------- -------
Net asset value, end of period $ 10.22 $ 10.24 $ 10.24 $ 10.39 $ 10.41 $ 10.41
======= ======= ======= ======= ======= =======
TOTAL RETURN 1.78%4 1.66%1,4 1.30%1,4 3.98% 3.54%1 2.83%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in 000's) $299,921 $ 4,890 $ 620 $313,368 $ 5,129 $ 709
Ratio of expenses to average
net assets 0.58%3 0.83%3 1.58%3 0.61% 0.86% 1.57%
Ratio of net investment income
to average net assets 5.85%3 5.60%3 4.85%3 5.21% 4.96% 4.25%
Ratio of expenses to average
net assets before
fee waivers 0.73%3 0.98%3 1.13%3 0.75% 1.00% 1.71%
Ratio of net investment income
to average net assets
before fee waivers 5.70%3 5.45%3 4.70%3 5.07% 4.82% 4.11%
Portfolio turnover rate 82% 82% 82% 256% 256% 256%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
1998 1997 1996 1995
---------------------------- ----------------- ------------------ ---------------
Class I Class A Class B2 Class I Class A Class I Class A Class I Class A
--------- -------- -------- -------- -------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 10.37 $ 10.42 $ 10.70 $ 10.30 $ 10.35 $ 10.54 $ 10.60 $10.24 $ 10.30
------- ------- ------- -------- ------- ------- ------- ------ -------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.60 0.58 0.20 0.60 0.57 0.61 0.59 0.63 0.61
Net gain/(loss) on securities
(realized and unrealized) 0.22 0.21 (0.07) 0.07 0.07 (0.22) (0.23) 0.30 0.30
------- ------- ------- -------- ------- ------- ------- ------ --------
Total from investment
operations 0.82 0.79 0.13 0.67 0.64 0.39 0.36 0.93 0.91
------- ------- ------- -------- ------- ------- ------- ------ --------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.60) (0.58) (0.20) (0.60) (0.57) (0.61) (0.59) (0.63) (0.61)
Distributions from net realized
capital gains (0.00) (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) (0.02) (0.02) (0.00) (0.00)
------- ------- ------- -------- ------- ------- ------- ------ -------
Total distributions (0.60) (0.58) (0.20) (0.60) (0.57) (0.63) (0.61) (0.63) (0.61)
------- ------- ------- -------- ------- ------- ------- ------ -------
Net asset value, end of period $ 10.59 $ 10.63 $ 10.63 $ 10.37 $ 10.42 $ 10.30 $ 10.35 $ 10.54 $ 10.60
======= ======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN 8.09% 7.71%1 7.39%1,3 6.63% 6.36%1 3.79% 3.44%1 9.55% 9.26%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in 000's) 166,710 $ 3,288 $ 2 $121,271 $3,720 $111,240 $6,216 $88,047 $5,527
Ratio of expenses to average
net assets 0.65% 0.91% 1.60%3 0.70% 0.96% 0.80% 1.04% 0.85% 1.09%
Ratio of net investment income
to average net assets 5.71% 5.48% 3.38%3 5.76% 5.52% 5.78% 5.50% 6.24% 5.95%
Ratio of expenses to average
net assets before
fee waivers 0.80% 1.06% 1.49%3 0.79% 1.05% 0.82% 1.06% 0.86% 1.10%
Ratio of net investment income
to average net assets
before fee waivers 5.56% 5.33% 3.49%3 5.66% 5.44% 5.76% 5.48% 6.23% 5.94%
Portfolio turnover rate 160% 160% 160% 217% 217% 45% 45% 42% 42%
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS B COMMENCED OPERATIONS JANUARY 6, 1998.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
</TABLE>
See Accompanying Notes
64
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TOTAL RETURN ADVANTAGE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- -------- --------
CORPORATE BONDS -- 38.5%
AGRICULTURE -- 0.9%
Cargill (B)
6.150% 02/25/08 $ 3,050 $ 2,790
--------
AUTO & AUTO FINANCES -- 3.0%
Chrysler Financial
5.150% 01/22/01 3,525 3,472
Ford Motor
6.375% 02/01/29 6,125 5,252
Ford Motor Credit
6.550% 09/10/02 750 743
--------
9,467
--------
BANKS -- 6.2%
BankAmerica
7.875% 12/01/02 3,600 3,699
Chase Manhattan
6.375% 02/15/08 3,200 3,044
Citicorp
7.125% 09/01/05 4,000 4,000
First Union
7.125% 10/15/06 4,400 4,395
Fleet Financial
6.500% 03/15/08 2,775 2,632
6.375% 05/15/08 1,175 1,088
Nationsbank
7.000% 09/15/01 815 819
--------
19,677
--------
BROKERAGE -- 1.2%
Lehman Brothers
6.625% 04/01/04 3,800 3,700
--------
CABLE & MEDIA -- 1.2%
Time Warner Entertainment
10.150% 05/01/12 3,080 3,686
--------
CONSULTING SERVICES -- 1.1%
CSC Enterprises
6.500% 11/15/01 3,365 3,352
--------
CONSUMER FINANCE -- 1.0%
Household Finance
5.875% 02/01/09 3,400 3,064
--------
DEFENSE -- 0.8%
Raytheon
5.950% 03/15/01 2,500 2,463
--------
FOOD & BEVERAGE -- 0.8%
Safeway
7.250% 09/15/04 2,420 2,420
--------
Par Value
Maturity (000) (000)
---------- ------- --------
CORPORATE BONDS -- CONTINUED
INSURANCE -- 3.3%
Lumbermans Mutual Casualty (B)
8.300% 12/01/37 $ 500 $ 446
Metropolitan Life
7.000% 11/01/05 5,900 5,776
Nationwide
9.875% 02/15/25 4,000 4,142
--------
10,364
--------
OIL & GAS -- 1.5%
Atlantic Richfield
9.875% 03/01/16 1,900 2,311
Conoco
6.950% 04/15/29 2,550 2,362
--------
4,673
--------
REAL ESTATE INVESTMENT TRUST -- 0.5%
Mack-Cali Realty
7.000% 03/15/04 1,650 1,598
--------
RETAIL -- 0.8%
Dayton Hudson
6.650% 08/01/28 3,000 2,648
--------
SPECIALTY CHEMICALS -- 2.6%
Engelhard
7.000% 08/01/01 5,600 5,649
Monsanto (B)
6.600% 12/01/28 3,150 2,737
--------
8,386
--------
TECHNOLOGY -- 1.0%
Applied Material
7.125% 10/15/17 3,475 3,187
--------
TELEPHONE & TELECOMMUNICATION -- 6.0%
AT&T
6.500% 03/15/29 4,100 3,593
GTE Northwest
5.550% 10/15/08 2,600 2,327
Sprint Capital
6.875% 11/15/28 5,410 4,923
Telephone & Data Systems
7.000% 08/01/06 5,500 5,266
Worldcom
6.400% 08/15/05 3,100 3,011
--------
19,120
--------
See Accompanying Notes
65
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TOTAL RETURN ADVANTAGE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
CORPORATE BONDS -- CONTINUED
TRANSPORTATION REVENUE BOND -- 0.5%
Federal Express
6.720% 01/15/22 $ 1,596 $ 1,501
--------
UTILITIES-ELECTRIC -- 2.5%
Consolidated Edison
6.450% 12/01/07 3,250 3,071
Pennsylvania Power & Light
6.125% 05/01/01 3,550 3,528
Puget Sound Energy
6.740% 06/15/18 1,525 1,359
--------
7,958
--------
YANKEE -- 3.9%
Ahold Financial
6.250% 05/01/09 4,200 3,896
City of Naples
7.520% 07/15/06 4,310 4,362
Quebec Province
8.625% 01/19/05 3,875 4,158
--------
12,416
--------
TOTAL CORPORATE BONDS
(Cost $128,289) 122,470
--------
ASSET BACKED SECURITIES -- 24.3%
AUTO -- 2.5%
Aesop (B)
6.140% 05/20/06 4,750 4,564
Aesop, Series 1997-A, Class A2 (B)
6.400% 10/20/03 3,495 3,452
--------
8,016
--------
COMMERCIAL MORTGAGE -- 6.0%
First Union Lehman Brothers Trust,
Series 1998, Class A2
6.560% 11/18/08 6,465 6,202
GMAC Commercial Mortgage
Security, Series 1997-C1,
Class A3
6.869% 08/15/07 6,750 6,509
Morgan Stanley Capital,
Series 1999-WF1, Class A2
6.210% 09/15/08 6,835 6,392
--------
19,103
--------
CREDIT CARDS -- 11.1%
First USA Credit Card Master Trust,
Series 1999-2, Class C (B)
6.650% 10/19/08 3,235 3,045
Par Value
Maturity (000) (000)
---------- ------- --------
ASSET BACKED SECURITIES -- CONTINUED
First USA Credit Card Master Trust,
Series1999-1, Class C (B)
6.420% 10/19/06 $ 3,895 $ 3,731
Green Tree Financial,
Series 1997-5, Class A5-MH
6.620% 05/15/29 2,535 2,490
MBNA Credit Card Master Trust,
Series 1999-B, Class C (B)
6.650% 08/15/11 2,780 2,547
Series 1998-F, Class C (B)
6.450% 02/15/08 4,985 4,660
MBNA Master Trust,
Series 1997-F, Class A
6.600% 11/15/04 4,405 4,459
Metris Master Trust,
Series 1997-1, Class A
6.870% 10/20/05 4,040 4,043
PNC Student Loan Trust I,
Series 1997-2, Class A6
6.572% 01/25/04 2,870 2,807
Sears Credit Series 1999-3
Class A
6.450% 11/17/09 7,635 7,483
--------
35,265
--------
HOME EQUITY -- 0.9%
Merrill Lynch Mortgage Investors,
Series 1998-GN1, Class A1
7.110% 08/25/27 3,001 2,995
--------
MISCELLANEOUS -- 3.8%
Comed Trust Financial Stranded
Asset, Series 1998-1, Class A6
5.630% 06/25/09 7,365 6,900
Franchise Funding Credit Association,
Series 97-1, Class A-EQ (B)
7.020% 12/18/06 1,577 1,569
Railcar Leasing, Series 1997-1,
Class A2-EQ (B)
7.125% 01/15/13 3,610 3,537
--------
12,006
--------
TOTAL ASSET BACKED SECURITIES
(Cost $79,862) 77,385
--------
See Accompanying Notes
66
<PAGE>
Statement of Net Assets
Armada Total Return Advantage Fund
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
COLLATERALIZED MORTGAGE
OBLIGATIONS -- 3.4%
Collateralized Mortgage Obligation
Trust, Series 13, Class A (A)
5.940% 01/20/03 $ 24 $ 24
Federal Home Loan Mortgage
Corporation, Series 2095,
Class PE
6.000% 11/15/28 1,859 1,626
Federal Home Loan Mortgage
Corporation, Series 2101 Class PD
6.000% 11/15/28 2,245 1,959
Federal Home Loan Mortgage
Corporation, Series 2104, Class PG
6.000% 12/15/28 1,861 1,636
Merrill Lynch Mortgage Investors
Series 1999-C1, Class A-2
7.560% 09/15/09 5,650 5,692
--------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS
(Cost $11,478) 10,937
--------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.9%
FEDERAL HOME LOAN MORTGAGE CORPORATION -- 0.0%
Pool # 16-0045
8.750% 05/01/08 3 3
Pool # 18-1063
7.500% 12/01/10 69 71
--------
74
--------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 0.8%
Series 1999-51
6.500% 10/25/29 2,660 2,433
--------
2,433
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 0.1%
Pool # 132781
10.500% 11/15/00 4 5
Pool # 780919
9.500% 10/15/18 386 413
--------
418
--------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $2,906) 2,925
--------
Par Value
Maturity (000) (000)
---------- ---------- --------
MORTGAGE PASS THROUGH OBLIGATIONS -- 0.1%
Thirty-Seventh FHA Insurance Project
7.430% 05/01/22 $ 439 $ 434
--------
TOTAL MORTGAGE PASS THROUGH OBLIGATIONS
(Cost $439) 434
--------
U.S. TREASURY OBLIGATIONS -- 31.1%
U.S. TREASURY BONDS -- 20.6%
U.S. Treasury Bond #
7.500% 11/15/16 20,385 22,217
8.125% 08/15/21 36,945 43,390
--------
65,607
--------
U.S. TREASURY NOTES -- 10.5%
U.S. Treasury Note
5.375% 02/15/01 6,535 6,495
6.250%# 02/15/03 14,800 14,871
5.375%# 06/30/03 4,635 4,534
6.500%# 05/15/05 3,120 3,163
6.125%# 08/15/07 105 104
4.750%# 11/15/08 4,800 4,315
--------
33,482
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $102,373) 99,089
--------
CASH EQUIVALENT -- 0.6%
Fidelity Domestic Money Market
Fund 1,855 1,855
--------
TOTAL CASH EQUIVALENT
(Cost $1,855) 1,855
--------
TOTAL INVESTMENTS -- 98.9%
(Cost $327,202) $315,095
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.1% 3,381
--------
See Accompanying Notes
67
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TOTAL RETURN ADVANTAGE FUND
NOVEMBER 30, 1999
(UNAUDITED)
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
32,221,836 outstanding shares
of beneficial interest $325,589
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
647,738 outstanding shares
of beneficial interest 6,535
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on 75
outstanding shares of beneficial interest 1
Accumulated net realized loss on investments (1,503)
Net unrealized depreciation on investments (12,107)
Overdistributed net investment income (39)
--------
TOTAL NET ASSETS -- 100.0% $318,476
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $9.69
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A $9.68
========
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A ($9.68 / 95.25%) $10.16
========
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS B $9.70
========
- ------------------------------------------------
# SECURITY FULLY OR PARTIALLY ON LOAN.
(A) VARIABLE RATE SECURITY- THE RATE REFLECTED IN THE STATEMENT OF NET ASSETS IS
THE RATE IN EFFECT ON NOVEMBER 30, 1999.
(B) PRIVATE PLACEMENT SECURITY
CL -- CLASS
See Accompanying Notes
68
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA TOTAL RETURN ADVANTAGE FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months For the Year Ended
Ended November 30, 1999 May 31,
(Unaudited) 1999
----------------------------- -------------------
Class I Class A Class B2 Class I Class A
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.99 $ 9.98 $ 9.72 $ 10.25 $ 10.25
-------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.35 0.28 0.15 0.58 0.56
Net gain/(loss) on securities
(realized and unrealized) (0.30) (0.29) (0.04) (0.22) (0.23)
-------- -------- -------- -------- --------
Total from investment
operations 0.05 (0.01) 0.11 0.36 0.33
-------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.35) (0.29) (0.13) (0.58) (0.56)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) (0.00) (0.00)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.04) (0.04)
Distributions in excess of net
realized capital gains (0.00) (0.00) (0.00) (0.00) (0.00)
-------- -------- -------- -------- --------
Total distributions (0.35) (0.29) (0.13) (0.62) (0.60)
-------- -------- -------- -------- --------
Net asset value, end of period $ 9.69 $ 9.68 $ 9.70 $ 9.99 $ 9.98
======== ======== ======== ======== ========
TOTAL RETURN 1.63%6 1.59%1,6 2.71%1,6 3.54% 3.18%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $312,208 $ 6,267 $ 1 $328,417 $ 4,686
Ratio of expenses to average net
assets 0.49%5 0.74%5 1.49%5 0.45% 0.69%
Ratio of net investment income to
average net assets 6.01%5 5.76%5 5.01%5 5.72% 5.48%
Ratio of expenses to average net
assets before fee waivers 0.69%5 0.94%5 1.69%5 0.65% 0.89%
Ratio of net investment income to
average net assets before fee waivers 5.81%5 5.56%5 4.82%5 5.52% 5.28%
Portfolio turnover rate 73% 73% 73% 142% 142%
</TABLE>
<TABLE>
<CAPTION>
For the Period
For the Year Ended May 31, Ended May 31,
1998 1997 1996 1995
------------------ ------------------ ------------------ --------------------
Class I Class A Class I Class A Class I Class A Class I2 Class A2
--------- -------- -------- ------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 9.89 $ 9.89 $ 9.88 $ 9.87 $ 10.55 $ 10.54 $ 10.00 $ 10.16
-------- ------- -------- ------- -------- ------- -------- --------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.64 0.61 0.67 0.64 0.70(4) 0.62(4) 0.65(4) 0.49(4)
Net gain/ (loss) on securities
(realized and unrealized) 0.36 0.36 0.15 0.16 (0.24) (0.22) 0.43 0.40
-------- ------- -------- ------- -------- ------- -------- --------
Total from investment
operations 1.00 0.97 0.82 0.80 0.46 0.40 1.08 0.89
-------- ------- -------- ------- -------- ------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.64) (0.61) (0.67) (0.64) (0.70) (0.62) (0.53) (0.49)
Dividends in excess of net
investment income (0.00) (0.00) (0.00) (0.00) (0.12) (0.14) (0.00) (0.02)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.00) (0.31) (0.31) (0.00) (0.00)
Distributions in excess of net
realized capital gains (0.00) (0.00) (0.14) (0.14) (0.00) ( 0.00) (0.00) (0.00)
-------- ------- -------- ------- -------- ------- -------- --------
Total distributions (0.64) (0.61) (0.81) (0.78) (1.13) (1.07) (0.53) (0.51)
-------- ------- -------- ------- -------- ------- -------- --------
Net asset value, end of period $ 10.25 $ 10.25 $ 9.89 $ 9.89 $ 9.88 $ 9.87 $ 10.55 $ 10.54
======== ======= ======== ======= ======== ======= ======== ========
TOTAL RETURN 10.35% 10.08%1 8.51% 8.35%1 4.22% 3.74%1 12.52%3 12.65%1,3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $296,075 $ 640 $259,228 $ 2,186 $280,401 $ 2,040 $261,403 $ 106
Ratio of expenses to average
net assets 0.31% 0.54% 0.16% 0.41% 0.13% 0.36% 0.18%2 0.31%2
Ratio of net investment income to
average net assets 6.29% 6.14% 6.70% 6.46% 6.67% 6.12% 7.23%2 6.92%2
Ratio of expenses to average
net assets before fee waivers 0.72% 0.97% 0.71% 0.96% 0.69% 0.89% 0.77%2 0.87%2
Ratio of net investment income to
average net assets before fee
waivers 5.88% 5.71% 6.15% 5.91% 6.11% 5.59% 6.64%2 6.36%2
Portfolio turnover rate 170% 170% 169% 169% 268% 268% 166% 166%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON JULY 7, 1994, SEPTEMBER
6, 1994 AND AUGUST 11, 1999, RESPECTIVELY.
3 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.
4 CALCULATED BASED UPON AVERAGE SHARES OUTSTANDING.
5 ANNUALIZED.
6 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
69
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA NATIONAL TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- 96.7%
ALASKA -- 1.2%
Alaska State, Housing Finance
Corporation Mortgage (RB) (MBIA)
4.950% 06/01/02 $ 75 $ 76
5.050% 12/01/03 70 71
Anchorage (GO) (MBIA)
5.000% 07/01/14 1,100 1,031
--------
1,178
--------
ARIZONA -- 3.5%
Maricopa County, Industrial
Development Authority,
Madera Pointe Apartments
Project (RB) (FSA)
5.300% 06/01/06 1,000 1,000
Salt River Project (RB)
5.125% 01/01/10 2,415 2,394
--------
3,394
--------
ARKANSAS -- 0.5%
Arkansas State, Development
Finance Authority, Correction
Facility (RB) (MBIA)
4.800% 11/15/06 200 200
Pulaski County, Health Facilities
Board, Catholic Health Initiatives (RB)
4.150% 12/01/00 250 250
--------
450
--------
CALIFORNIA -- 1.0%
San Francisco, City & County
(GO) (FGIC) (A) Series 1
5.000% 06/15/10 1,000 997
--------
CONNECTICUT -- 2.1%
Connecticut State (GO) Series B
5.500% 03/15/11 2,000 2,055
--------
DELAWARE -- 0.5%
Delaware (GO)
6.125% 04/01/00 500 504
--------
GEORGIA -- 3.5%
Fulton County, Housing Authority,
Single Family (RB) (GNMA)
5.100% 03/01/03 40 40
5.300% 03/01/05 45 46
Georgia State (GO)
6.250% 08/01/06 1,000 1,082
6.650% 03/01/09 1,000 1,120
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
GEORGIA -- CONTINUED
Private Colleges & Universities
Authority, Emory University
Project (RB)
5.375% 11/01/05 $1,000 $ 1,040
--------
3,328
--------
ILLINOIS -- 5.6%
Glenview (BAN)
5.550% 12/01/99 175 175
Illinois State, Development
Financial Authority Revenue
School District Number 189 (RB)
5.000% 01/01/04 400 405
Illinois State, Educational
Facility Authority, Robert Morris
College (RB) (MBIA)
4.700% 06/01/04 200 201
Illinois State, Sales Tax (RB)
6.000% 06/15/12 1,000 1,044
Illinois State, Toll Road Authority
(RB) (FSA)
5.500% 01/01/13 2,500 2,512
Lake County, First Preservation
District (GO)
5.500% 02/01/09 1,000 1,022
--------
5,359
--------
INDIANA -- 8.9%
East Chicago, Elementary School
Building (RB) (A)
6.250% 01/05/16 1,750 1,831
Fort Wayne, Redevelopment
District (FSA)
4.550% 02/01/08 500 484
Fort Wayne, South Side School
Building (A)
4.700% 07/15/10 750 716
Fort Wayne, South Side School
Building, First Mortgage (RB)
4.750% 07/15/11 500 473
Hamilton, School Building,
First Mortgage (RB)
4.400% 07/15/01 100 100
4.500% 07/05/03 365 366
4.550% 07/05/04 300 299
Hammond, Multi-School
Building (RB)
6.000% 01/15/18 1,250 1,289
Indiana State, Office
Building (RB) (A)
4.150% 07/01/04 400 388
See Accompanying Notes
70
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA NATIONAL TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
INDIANA -- CONTINUED
Indiana State, Prerefunded
07/15/04 @ 102 (RB)
6.150% 01/15/16 $1,200 $ 1,293
Lagrange County, Jail Building,
First Mortgage (RB)
5.300% 10/01/10 300 296
Steuben County, School Building,
First Mortgage (RB)
4.250% 03/01/02 245 244
Vinton-Tecumseh, School
Building (RB) (A)
4.450% 01/05/05 300 294
Vinton-Tecumseh, School Building,
First Mortgage (RB) (A)
4.350% 01/05/04 495 489
--------
8,562
--------
MARYLAND -- 2.2%
Prince Georges County,
(GO) (MBIA)
6.000% 03/15/06 1,000 1,068
Washington, Suburban Sanitation
District, Prerefunded
11/01/01 @ 102 (RB)
6.500% 11/01/01 1,000 1,060
--------
2,128
--------
MASSACHUSETTS -- 4.4%
Massachusetts Bay Transportation
Authority, Callable 3/1/05 @ 102
5.750% 03/01/18 655 650
Massachusetts Bay Transportation
Authority, General Transportation
System, Prerefunded
03/01/05 @ 102 (RB) (A)
Series A
5.800% 03/01/11 1,000 1,050
Massachusetts Bay Transportation
Authority, Prerefunded
3/1/05 @ 102
5.750% 03/01/05 2,385 2,540
--------
4,240
--------
MICHIGAN -- 6.8%
Forest Hills Public Schools
Unlimited Tax (GO)
5.000% 05/01/12 1,000 966
Grand Rapids Community College
(GO) (MBIA) (A)
5.900% 05/01/03 2,000 2,113
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
MICHIGAN -- CONTINUED
Michigan Municipal Bond
Authority (RB)
6.000% 10/01/07 $2,000 $ 2,135
Redford School District
(GO) (AMBAC)
5.500% 05/01/06 1,315 1,361
--------
6,575
--------
MINNESOTA -- 1.6%
Minnesota State, Public Facilities
Authority, Prerefunded
03/01/00 @ 102 (RB)
7.100% 03/01/00 1,300 1,336
Minnesota State, Public
Housing Finance Agency,
Residential Housing (RB)
4.750% 07/01/01 200 201
--------
1,537
--------
MISSOURI -- 2.4%
Columbia, Water &
Electric (RB)
5.600% 10/01/04 2,245 2,335
--------
NEBRASKA -- 0.9%
Nebraska State, American
Public Energy Agency, Gas
Refunding (RB) (AMBAC)
4.200% 09/01/10 1,000 891
--------
NEVADA -- 3.3%
Henderson (GO) (MBIA)
6.500% 06/01/07 1,000 1,093
Nevada State (GO) (ETM)
6.300% 07/01/04 1,000 1,054
Nevada State (GO)
6.000% 05/15/09 1,000 1,063
--------
3,210
--------
NEW JERSEY -- 2.2%
New Jersey State, Transportation
Fund (RB) (AMBAC) Series B
6.000% 06/15/05 2,000 2,125
--------
NEW YORK -- 3.5%
New York State, Power
Authority, Prerefunded
01/01/10 @ 100 (RB)
7.000% 01/01/10 1,000 1,151
Orange County (GO)
5.000% 07/15/11 2,225 2,183
--------
3,334
--------
See Accompanying Notes
71
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA NATIONAL TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- 8.3%
Butler County, Transportation
Improvement (RB) (FSA)
6.000% 04/01/10 $1,000 $ 1,066
Cleveland, Public Power
System (RB) (MBIA)
6.000% 11/15/10 995 1,065
Cleveland, Water Works
(RB) (MBIA)
5.500% 01/01/09 1,500 1,547
Hudson, Local School
District (GO) (FGIC) (C)
0.000% 12/15/10 1,000 563
Ohio State, Housing Finance
Agency Mortgage
(RB) (GNMA)
5.350% 09/01/04 190 193
Ohio State, Turnpike Commission
(RB) (FGIC) Series A
5.500% 02/15/17 2,000 1,965
Wyoming City, School
District (GO) (FGIC)
5.750% 12/01/15 740 759
5.750% 12/01/16 800 814
--------
7,972
--------
PENNSYLVANIA -- 0.1%
Pennsylvania State, Higher
Educational Facility Authority,
Philadelphia College
Osteopathic (RB)
4.450% 12/01/01 100 100
--------
RHODE ISLAND -- 1.4%
Convention Center Authority,
Prerefunded 05/15/01 @ 102
(RB) (MBIA) Series A
6.700% 05/15/01 1,310 1,379
--------
SOUTH CAROLINA -- 5.3%
Charleston County, Public
Improvement (GO)
6.000% 09/01/09 1,000 1,071
South Carolina State, Public
Service Authority (RB) (FGIC)
5.875% 01/01/23 4,000 4,010
--------
5,081
--------
TENNESSE -- 1.7%
Nashville & Davidson County,
Metropolitan Government (GO)
6.000% 12/01/10 1,500 1,616
--------
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
TEXAS -- 9.3%
Dallas County, (GO) (MBIA)
5.000% 02/15/09 $ 600 $ 594
Harris County, Toll Roads
Revenue (RB)
6.500% 08/15/15 2,000 2,100
Plano, Independent School
District (GO) (A)
6.000% 02/15/06 1,000 1,063
5.900% 02/15/10 1,000 1,039
Texas State, Public Finance
Authority, Prerefunded
10/01/00 @ 100 (RB)
6.375% 10/01/00 4,100 4,179
--------
8,975
--------
UTAH -- 2.6%
Utah State, Intermountain
Power Agency, Power Supply
(RB) (FSA) Series E
6.250% 07/01/09 2,000 2,165
Weber County, Municipal Building
Authority (RB) (MBIA)
4.900% 12/15/05 300 303
--------
2,468
--------
VERMONT -- 2.1%
Vermont Bank (RB)
5.500% 12/01/10 2,000 2,048
--------
VIRGINIA -- 1.1%
Richmond, Public Improvement,
Prerefunded 01/15/01 @ 102 (GO)
6.250% 01/15/01 1,000 1,041
--------
WASHINGTON -- 5.8%
King County (GO)
6.100% 12/01/01 1,000 1,002
Washington State (GO)
6.500% 09/01/01 1,900 1,969
Washington State, Public
Power Supply Systems,
Nuclear Project No. 2 ,
Prerefunded 01/01/01 @ 102
(RB) Series C
7.625% 07/01/10 2,500 2,637
--------
5,608
--------
WISCONSIN -- 4.8%
Cottage Grove (GO) (FSA)
4.700% 08/01/07 260 256
See Accompanying Notes
72
<PAGE>
[GRAPHIC OMITTED} STATEMENT OF NET ASSETS
ARMADA NATIONAL TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
---------- ------- --------
MUNICIPAL BONDS -- CONTINUED
WISCONSIN -- CONTINUED
Wisconsin State, Clean
Water (RB)
5.000% 06/01/06 $1,000 $ 1,006
Wisconsin State, Prerefunded
05/01/02 @ 100 (GO) Series A
6.300% 05/01/02 3,275 3,414
--------
4,676
--------
TOTAL MUNICIPAL BONDS
(Cost $94,033) 93,166
--------
CASH EQUIVALENT -- 2.0%
Federated Tax-Free Money
Market Fund 1,948 1,948
--------
TOTAL CASH EQUIVALENT
(Cost $1,948) 1,948
--------
TOTAL INVESTMENTS -- 98.7%
(Cost $95,981) $ 95,114
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.3% 1,216
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
9,505,127 outstanding shares
of beneficial interest 92,932
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
442,838 outstanding shares
of beneficial interest 4,510
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
31,689 outstanding shares
of beneficial interest 319
Accumulated net realized loss on investments (283)
Net unrealized depreciation on investments (867)
Overdistributed net investment income (281)
--------
TOTAL NET ASSETS -- 100.0% $ 96,330
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $9.66
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $9.67
========
MAXIMUM OFFERING PRICE PER
SHARE - CLASS A ($9.67 / 95.25%) $10.15
========
NET ASSET VALUE, AND OFFERING
PRICE PER SHARE-- CLASS B $9.66
========
- ------------------------------------------------
(A) SECURITY IS BACKED BY A LETTER OF CREDIT BACKED BY A MAJOR FINANCIAL
INSTITUTION
(B) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
(C) ZERO COUPON BOND
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
BAN -- BOND ANTICIPATION NOTE
ETM -- ESCROW TO MATURITY
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FSA -- FEDERAL SECURITY ASSURANCE
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
See Accompanying Notes
73
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA NATIONAL TAX EXEMPT BOND FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year For the Period
(Unaudited) Ended May 31, 1999 Ended May 31, 1998
------------------------------- ----------------------------- ----------------------
Class I Class A Class B Class I Class A2 Class B2 Class I2
--------- ------- -------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.96 $ 9.97 $ 9.96 $ 10.03 $ 10.04 $ 10.23 $ 10.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.19 0.19 0.16 0.45 0.41 0.13 0.07
Net gain/(loss) on securities (realized
and unrealized) (0.28) (0.29) (0.29) (0.04) (0.04) (0.26) 0.03
---------- -------- -------- -------- -------- -------- --------
Total from investment operations (0.09) (0.10) (0.13) 0.41 0.37 (0.13) 0.10
---------- -------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.21) (0.20) (0.17) (0.45) (0.41) (0.14) (0.07)
Distribution from net realized
capital gains (0.00) (0.00) (0.00) (0.03) (0.03) (0.00) (0.00)
---------- -------- -------- -------- -------- -------- --------
Total distributions (0.21) (0.20) (0.17) (0.48) (0.44) (0.14) (0.07)
---------- -------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.66 $ 9.67 $ 9.66 $ 9.96 $ 9.97 $ 9.96 $ 10.03
========== ======== ======== ======== ======== ======== ========
TOTAL RETURN (0.73)%4 (0.77)%1,4 (1.13)%1,4 4.07% 3.67%1,4 (1.22)%1,4 7.03%3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $ 91,747 $ 4,278 $ 305 $100,638 $ 4,205 $ 275 $ 80,259
Ratio of expenses to average net assets 0.34%3 0.42%3 1.14%3 0.36% 0.46%3 1.17%3 0.33%3
Ratio of net investment income to
average net assets 3.93%3 3.86%3 3.15%3 4.39% 4.29%3 3.58%3 4.62%3
Ratio of expenses to average net
assets before fee waivers 0.63%3 0.71%3 1.42%3 0.87% 0.97%3 1.68%3 0.87%3
Ratio of net investment income to
average net assets before fee waivers 3.65%3 3.58%3 2.86%3 3.88% 3.78%3 3.07%3 4.08%3
Portfolio turnover rate 11% 11% 11% 23% 23% 23% 0%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS I, CLASS A AND CLASS B COMMENCED OPERATIONS ON APRIL 9 1998, JUNE 19,
1998 AND JANUARY 29, 1999, RESPECTIVELY.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
74
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- ----
MUNICIPAL BONDS -- 98.4%
OHIO -- 97.4%
Akron (GO)
10.500% 12/01/99 $ 100 $ 100
6.000% 12/01/12 1,000 1,064
Akron, Economic Development
(RB) (MBIA)
5.750% 12/01/09 1,680 1,770
6.000% 12/01/12 935 990
Akron, Sewer System (RB) (MBIA)
5.650% 12/01/08 560 584
Akron, Sewer System (RB) (FGIC)
5.500% 12/01/11 1,035 1,057
Akron Waterworks (RB) (FGIC)
5.150% 03/01/01 500 506
Akron Waterworks (RB) (MBIA)
4.900% 03/01/08 1,500 1,492
Allen County (GO) (AMBAC)
4.950% 12/01/04 500 508
Ashland City School District (GO)
4.950% 12/01/07 345 347
Ashland City School District
(GO) (AMBAC)
5.000% 12/01/08 250 250
5.100% 12/01/09 245 246
Avon Lake City, Local School
District (GO)
5.750% 12/01/14 2,165 2,206
Avon Lake City, Local School
District (GO) (AMBAC)
5.800% 12/01/12 1,000 1,044
Bay Village City School District,
Prerefunded 12/01/00 @ 102 (GO)
7.350% 12/01/11 200 210
Beavercreek Local School District
(GO) (FGIA)
5.250% 12/01/07 1,130 1,153
Belefontaine School (GO)
5.750% 12/01/18 505 502
Berea (GO)
7.000% 12/01/99 400 400
Big Walnut, Local School
District (AMBAC)
6.900% 06/01/00 235 238
7.000% 06/01/01 220 229
Bowling Green City, School District,
Prerefunded 12/01/99 @ 102 (GO)
7.000% 12/01/02 260 265
Brown County (GO) (AMBAC)
5.200% 12/01/04 455 468
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Butler County, Sewer Systems,
Prerefunded 12/01/02 @101
(RB) (AMBAC)
6.000% 12/01/04 $ 500 $ 526
Butler County, Sewer Systems
(RB) (AMBAC)
4.600% 12/01/09 1,540 1,478
4.600% 12/01/10 1,520 1,436
Butler County, Transportation
(RB) (FSA)
5.500% 04/01/09 1,150 1,187
Celina City School District
(GO) (FGIC)
5.250% 12/01/20 1,750 1,612
Centerville City, School District
(GO) (MBIA)
5.650% 12/01/18 500 492
Centerville City, School District
(GO) (FGIC)
5.500% 12/01/07 500 518
Chesapeake Union, Exempted
Village (GO) (AMBAC)
6.250% 12/01/22 1,000 1,023
Cincinnati (GO)
5.375% 12/01/99 250 250
Clermont County, Waterworks
(RB) (AMBAC)
5.300% 12/01/05 500 515
Cleveland Heights (GO)
5.400% 12/01/00 900 913
Cleveland Ohio Cap Appreciation
(RB) (B)
0.000% 12/01/07 810 543
0.000% 12/01/09 825 483
0.000% 12/01/10 815 443
0.000% 12/01/13 815 369
0.000% 12/01/18 820 260
0.000% 12/01/19 815 240
Cleveland, Regional Sewer
District Water, Prerefunded
05/15/04 @ 100 (RB)
6.750% 04/01/07 600 650
Cleveland Ohio Waterworks (RB)
5.900% 01/01/01 500 509
Cleveland, Waterworks,
Prerefunded 01/01/02 @ 102
(RB) (AMBAC) Class A
6.500% 01/01/02 1,000 1,059
Cleveland, Waterworks (RB) (MBIA)
5.400% 01/01/06 500 516
Cleveland Ohio Waterworks (RB)
6.000% 01/01/06 2,000 2,128
See Accompanying Notes
75
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Cleveland Ohio Waterworks
(RB) (MBIA)
5.625% 01/01/13 $ 3,000 $ 3,038
Columbus (GO)
5.250% 05/01/02 1,000 1,021
5.300% 05/01/03 1,000 1,026
Columbus, Water System (GO)
5.800% 02/15/01 500 509
Columbus (GO) (A) Series 1
3.700% 12/01/17 1,500 1,500
Columbus City, School District,
Prerefunded 12/01/99 @ 102
(GO) (AMBAC)
6.950% 12/01/02 100 102
7.050% 12/01/08 500 510
Columbus City, School District,
Prerefunded 12/01/00 @ 102
(GO) (FGIC)
7.000% 12/01/11 100 105
Columbus City, School District,
Prerefunded 12/01/02 @ 102
(GO) (FGIC)
6.650% 12/01/02 900 972
Columbus, Sewer (RB)
6.200% 06/01/04 1,500 1,586
Columbus, Water System (RB)
6.000% 11/01/02 330 346
Cuyahoga County (GO)
5.650% 05/15/18 500 488
Cuyahoga County, Prerefunded
10/01/01 @ 102 (GO)
7.000% 10/01/13 100 107
Cuyahoga County, University
Hospital System Health Project
(RB) Series B
6.000% 01/15/03 400 415
Cuyahoga County, University
Hospital System Health Project
(RB) (MBIA) Series A
6.000% 01/15/06 1,000 1,061
5.250% 01/15/08 2,000 2,030
Cuyahoga County, Hospital,
Cleveland Clinic Foundation (RB)
6.000% 11/15/03 890 928
6.125% 11/15/04 840 882
Cuyahoga Falls, Callable
12/01/2007 @ 102 (GO)
5.250% 12/01/17 2,500 2,353
Dayton, Airport (RB) (AMBAC)
5.400% 12/01/06 1,000 1,036
5.150% 12/01/07 1,000 1,018
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Delaware County (GO)
5.250% 12/01/06 $ 500 $ 511
5.450% 12/01/08 250 256
Delaware City School District
(GO) (FGIC)
5.250% 12/01/06 770 790
Delphos, Sewer System Management,
Prerefunded 09/01/00 @ 102
(RB) (FSA)
7.200% 09/01/10 200 209
Euclid, Prerefunded
12/01/99 @ 102 (GO)
7.375% 12/01/09 450 459
Forest Hills Local School
District (GO) (MBIA)
6.000% 12/01/08 1,210 1,296
6.000% 12/01/09 830 890
Franklin County (GO)
5.050% 12/01/05 2,000 2,040
5.450% 12/01/09 1,000 1,020
Franklin County, Prerefunded
12/01/01 @ 102 (GO)
6.000% 12/01/03 500 525
6.300% 12/01/09 250 264
Franklin County, Convention
Facilities Authority Tax & Lease
(BAN) (MBIA)
6.700% 12/01/99 500 500
Franklin County, Hospital,
Children's Hospital (RB)
6.000% 11/01/06 1,035 1,087
Franklin County, Hospital,
Holy Cross Health System (RB)
5.875% 06/01/21 1,000 965
Franklin County, Hospital,
US Health Group (RB) (A)
4.500% 12/01/20 1,000 1,001
Franklin County, Hospital,
Riverside United Hospital
Project, Prerefunded
05/15/00 @ 102 (MBIA)
7.125% 05/15/05 1,000 1,034
Franklin County, Hospital,
Doctors Healthcare (RB)
4.750% 12/01/03 2,175 2,091
Franklin County, Hospital,
Riverside United Hospital Project,
Prerefunded 05/15/00 @ 102 (RB)
7.600% 05/15/00 1,500 1,554
See Accompanying Notes
76
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Greene County, Water Works
Systems (RB) (AMBAC)
5.300% 12/01/05 $ 500 $ 515
Hamilton County, Children's Hospital
Facility (RB) (MBIA)
5.375% 05/15/13 1,100 1,084
Hamilton County (GO)
5.750% 12/01/01 250 258
5.500% 12/01/07 240 249
5.000% 12/01/08 675 674
5.125% 12/01/08 1,000 1,008
5.100% 12/01/11 1,025 1,012
Hamilton County, Sewer System (RB)
6.200% 12/01/00 1,000 1,021
Hamilton County, Sewer System
(RB) (FGIC)
5.300% 12/01/06 1,000 1,030
5.400% 12/01/08 1,000 1,030
Hamilton County, Sewer System
(RB) (ETM)
6.300% 12/01/01 35 36
Hamilton County, Sewer System (RB)
6.300% 12/01/01 65 68
Hamilton County, Sewer System
(RB) (FGIC)
5.500% 12/01/10 1,240 1,276
5.000% 12/01/17 1,000 911
Hamilton City School (GO)
6.150% 12/01/13 1,000 1,071
Hancock County (GO)
5.750% 12/01/16 500 503
Hilliard City Schools (GO)
5.300% 12/01/99 250 250
Hilliard City School District,
Prerefunded 12/01/01 @ 102 (GO)
5.900% 12/01/04 1,000 1,049
Hilliard City Schools (GO) (FGIC)
6.150% 12/01/01 625 648
Hudson Local School District
(GO) (FGIC)
5.000% 12/15/02 500 509
Kenston Local School District (GO)
5.550% 12/01/03 500 517
Kent (GO)
5.200% 12/01/18 500 464
Kent State University (RB) (AMBAC)
6.150% 05/01/04 250 264
Kettering, Prerefunded
12/01/00 @ 102 (GO)
7.200% 12/01/02 480 504
Kettering (GO)
5.150% 12/01/05 550 561
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Lakewood, Prerefunded
12/01/02 @ 102 (GO)
6.500% 12/01/02 $ 1,500 $ 1,611
Lakewood (GO)
4.900% 12/01/11 1,070 1,035
Lakota School District, Prerefunded
12/01/00 @ 101 (GO)
7.000% 12/01/03 200 208
Lakota School District (GO) (AMBAC)
5.700% 12/01/05 250 263
Lakota School District (GO) (FGIC)
5.000% 12/01/12 1,000 958
Licking County (GO) (FGIC)
7.000% 12/01/02 100 107
Loveland City School District (GO)
6.000% 12/01/00 250 255
Lucas County, Hospital, Mercy
Hospital (ETM) (RB)
6.000% 09/01/04 155 159
Marysville Exempted Village
School District (GO) (AMBAC)
5.100% 12/01/04 500 511
Mason City School District (GO) (FGIC)
5.200% 12/01/08 865 871
Massillon City School District,
Prerefunded 12/01/00 @ 102
(GO) (AMBAC)
6.950% 12/01/03 300 314
7.000% 12/01/04 150 157
Miami University General
Receipts (RB)
5.400% 12/01/05 1,000 1,023
Miamisburg, Sewer System
(RB) (AMBAC)
5.000% 11/15/08 500 501
Middletown Ohio (GO) (FGIC)
5.750% 12/01/12 650 671
5.750% 12/01/13 640 658
Montgomery County, Sisters of
Charity Health Care (RB) (MBIA)
6.500% 05/15/08 300 315
Montgomery County, Catholic
Health Initiatives (RB)
5.000% 12/01/08 1,000 976
5.000% 12/01/09 1,000 968
Montgomery County,
Solid Waste (RB) (MBIA)
5.300% 11/01/07 1,000 1,024
5.125% 11/01/08 500 503
5.350% 11/01/10 900 911
See Accompanying Notes
77
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Montgomery County, Water
(RB) (AMBAC)
5.250% 11/15/06 $ 500 $ 514
Newark (GO) (AMBAC)
5.450% 12/01/02 1,000 1,030
North Canton City, School District
(GO) (AMBAC)
5.250% 12/01/01 500 510
5.750% 12/01/06 250 264
North Royalton City, School District
(GO) (MBIA)
6.625% 12/01/06 1,885 2,088
Northeast Regional Sewer
District Wastewater, Prerefunded
11/15/01 @ 101 (RB) (AMBAC)
6.400% 11/15/03 250 262
Northeast Regional Sewer District
Wastewater, Prerefunded
11/01/01 @ 101 (RB) (AMBAC)
6.500% 11/15/08 250 263
Northeast Regional Sewer District
Wastewater, Prerefunded
11/15/01 @ 101 (RB) (AMBAC)
6.500% 11/15/01 500 526
Oak Hills, Local School District (GO)
5.650% 12/01/07 350 367
Ohio Capital Corporation For
Housing, Housing & Urban
Development (RB) Series D
5.350% 02/01/09 650 640
Ohio State, Housing Financial
Agency, Single Family Mortgage (RB)
7.400% 03/01/05 35 36
7.400% 09/01/05 30 31
7.600% 09/01/16 100 103
6.375% 04/01/17 75 76
Ohio State, School District, School
Bus Project (GO) (AMBAC)
5.250% 04/15/00 440 442
Ohio State, Infrastructure
Improvement (GO)
5.250% 08/01/03 1,265 1,298
Ohio State (GO)
5.000% 08/01/00 500 503
5.150% 09/01/01 500 508
4.700% 08/01/03 1,000 1,008
6.600% 09/01/03 150 161
5.200% 08/01/08 1,000 1,013
Ohio State (GO) Series A
5.400% 10/01/07 1,370 1,401
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Ohio State, Prerefunded
08/01/05 @ 102 (GO)
6.200% 08/01/12 $ 860 $ 933
Ohio State, Highways (GO)
4.750% 05/15/02 1,000 1,010
Ohio State, Infrastructure
Improvement (GO)
5.750% 02/01/12 1,000 1,039
Ohio State, Air Quality Development
Authority, Buckeye Power Project (RB)
5.250% 08/01/07 400 401
Ohio State, Building Authority
Facilities, Adult Correctional
Building Fund (RB) (AMBAC)
Series A
6.125% 10/01/09 1,300 1,375
Ohio State, Building Authority
Facilities, James Rhodes
Project (RB) Series A
5.900% 06/01/00 500 505
Ohio State, Building Authority
Facilities, Juvenile Correctional
Building (RB)
5.800% 10/01/02 250 259
Ohio State, Building Authority
Facilities, State Arts Building (RB)
5.200% 10/01/04 500 513
Ohio State, Building Authority
Facilities, Highway Safety
Building (RB) (MBIA)
5.400% 10/01/02 250 257
Ohio State, Building Authority
Facilities, Adult Correctional
Building Fund (RB) (AMBAC)
Series A
6.000% 04/01/06 1,930 2,058
Ohio State, Building Authority
(RB) (AMBAC)
5.500% 04/01/14 1,500 1,496
Ohio State, Department of
Administrative Services
(RB) (AMBAC)
5.000% 12/15/12 1,210 1,169
Ohio State, Higher Educational
Facility, Denison University
Project (RB)
5.250% 11/01/09 1,000 1,001
Ohio State, Higher Educational
Facility (RB)
5.000% 07/01/18 600 532
See Accompanying Notes
78
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Ohio State, Higher Educational
Facility, Case Western Reserve
University Project, Prerefunded
10/01/00 @ 102 (RB) Series B
7.125% 10/01/14 $ 60 $ 63
Ohio State, Higher Educational
Facility (RB) (AMBAC) Series B
5.875% 12/01/01 500 516
Ohio State, Higher Educational
Facility, University of Dayton (RB)
5.875% 12/01/04 250 260
Ohio State, Higher Educational
Facility, Case Western University (RB)
5.000% 10/01/10 905 889
Ohio State, Public Facilities Mental
Health (RB) (MBIA)
6.800% 12/01/02 2,000 2,040
Ohio State, Public Facilities Higher
Education (RB) Series II-A
5.500% 12/01/00 500 507
Ohio State, Public Facilities Mental
Health (RB) (FSA)
5.000% 12/01/02 1,500 1,524
Ohio State, Public Facilities Higher
Education (RB) (AMBAC) Series II-A
4.250% 12/01/07 1,000 955
Ohio State, Public Facilities Higher
Education (RB) (AMBAC) Series II-B
5.700% 11/01/03 1,000 1,044
Ohio State, Public Facilities Higher
Education (RB) (AMBAC) Series II-A
5.200% 05/01/06 500 510
5.200% 05/01/07 775 787
Ohio State, Turnpike Commission
(RB) Series A
6.000% 02/15/07 3,100 3,309
Ohio State, Turnpike Commission
(RB) (FGIC) Series A
5.500% 02/15/17 1,805 1,773
Ohio State, Turnpike Commission
(RB) (FGIC) Series AA
5.500% 02/15/18 1,000 976
Ohio State, University General Receipts
5.150% 12/01/00 250 253
5.400% 12/01/02 1,500 1,541
Ohio State, Water Development
Authority, Pure Water (RB) (MBIA)
5.500% 06/01/01 200 204
5.500% 12/01/01 1,000 1,025
5.750% 12/01/05 500 523
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Ohio State, Water Development
Authority, Fresh Water
(RB) (AMBAC)
5.400% 12/01/04 $ 510 $ 528
Ohio State, Water Development
Authority, Pure Water
(RB) (AMBAC)
5.600% 06/01/07 1,500 1,558
Ohio State, Water Development
Authority, Safe Water
(RB) (AMBAC)
6.000% 12/01/06 1,075 1,152
Ohio State, Water Development
Authority, Pure Water
(RB) (AMBAC)
7.250% 12/01/08 500 551
Ohio State, Water Development
Authority (RB) (ETM)
8.000% 12/01/99 150 150
Ohio State, Water Development
Authority, Pure Water (RB) (MBIA)
5.550% 06/01/04 1,000 1,040
Ohio State, Water Development
Authority, Pollution Control
Facilities (RB)
5.900% 06/01/00 500 505
5.900% 12/01/02 320 334
Ohio State, Water Control Loan
Fund, Water Quality (RB) (MBIA)
5.000% 06/01/09 1,000 995
Ontario Local School District
(GO) (FSA)
4.800% 12/01/11 790 758
4.900% 12/01/12 630 606
Orrville Electric System
(RB) (AMBAC)
5.500% 12/01/08 1,220 1,264
Ottawa County (GO) (MBIA)
5.400% 09/01/11 500 505
Parma City School District (AN)
4.600% 12/01/03 1,360 1,336
4.600% 12/01/04 1,360 1,324
Parma City School District (GO)
5.550% 12/01/04 200 203
5.550% 12/01/05 290 294
5.550% 12/01/06 305 307
Perrysburg Village School District
(GO) (FSA) Series B
5.750% 12/01/12 1,225 1,277
See Accompanying Notes
79
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Portage County (GO)
6.000% 12/01/03 $ 915 $ 961
5.100% 12/01/12 2,500 2,447
Portage County, Hospital Facility
Authority, Robinson Memorial
(RB) (MBIA)
5.625% 11/15/07 1,000 1,040
Richland County (GO) (AMBAC)
5.200% 12/01/08 515 520
Rocky River, City School District (GO)
5.100% 12/01/07 625 631
Sandusky County, Hospital
Facility (RB)
4.900% 01/01/05 500 476
Southwest Licking School
District (GO) (FGIC)
5.750% 12/01/15 550 564
5.750% 12/01/16 400 407
Springfield Local School District (GO)
6.100% 12/01/03 250 263
Stow School District (GO)
9.125% 12/01/06 580 721
Strongsville (GO)
5.900% 12/01/15 1,575 1,608
Strongsville City School District
(GO) (MBIA)
5.150% 12/01/08 1,000 1,010
5.200% 12/01/09 670 678
Toledo (GO)
7.375% 12/01/99 500 500
7.375% 12/01/01 100 106
University of Cincinnati,
General Receipts (RB)
5.350% 06/01/08 1,000 1,008
5.500% 06/01/11 1,665 1,676
7.000% 06/01/11 500 526
University of Cincinnati, General
Receipts (RB) Series W
5.700% 06/01/12 1,240 1,251
University of Toledo General
Receipts (RB) (FGIC)
5.300% 06/01/01 175 178
Upper Arlington (GO)
6.200% 12/01/01 270 279
Upper Arlington, City School
District (GO) (MBIA)
6.000% 12/01/05 1,170 1,248
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Vandalia (GO)
5.350% 12/01/09 $ 505 $ 512
Washington County, Hospital,
Marietta Area Healthcare (RB) (FSA)
5.375% 09/01/18 1,500 1,440
West Clermont Local School
District (GO) (AMBAC)
5.650% 12/01/08 1,030 1,074
West Geauga Local School
District (GO) (AMBAC)
5.650% 11/01/06 1,000 1,049
Westerville (GO)
5.250% 12/01/10 1,990 2,002
5.250% 12/01/12 1,205 1,193
5.250% 12/01/13 1,850 1,815
Westlake (GO)
5.300% 12/01/03 500 516
Westlake City School
District (GO) Series A
6.200% 12/01/06 1,635 1,762
Wilmington City School
District (GO) (FGIC)
5.350% 12/01/00 225 228
Worthington City School
District (GO) (FGIC)
5.800% 12/01/01 1,200 1,236
5.850% 12/01/02 500 520
Wright State University
General Receipts (RB) (AMBAC)
4.900% 05/01/05 500 504
Wyoming City School
District (GO) (FGIC)
5.750% 12/01/13 135 140
5.750% 12/01/14 690 712
5.750% 12/01/17 400 406
--------
193,000
--------
PUERTO RICO -- 1.0%
Commonwealth of Puerto Rico,
Electric Power Authority
(RB) (MBIA)
6.500% 07/01/06 1,000 1,101
Commonwealth of Puerto Rico,
Housing Financial Corporation
(RB) (C)
7.300% 10/01/06 190 195
7.400% 04/01/07 210 215
See Accompanying Notes
80
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO TAX EXEMPT BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- --------- --------
MUNICIPAL BONDS -- CONTINUED
Commonwealth of Puerto Rico,
Prerefunded 07/01/00 @ 102
(GO) (FGIC)
7.200% 07/01/03 $ 500 $ 520
--------
2,031
--------
TOTAL MUNICIPAL BONDS
(Cost $196,236) 195,031
--------
CASH EQUIVALENT -- 0.0%
Federated Ohio Municipal Cash
Trust 17 17
--------
TOTAL CASH EQUIVALENT
(Cost $17) 17
--------
TOTAL INVESTMENTS -- 98.4%
(Cost $196,253) $195,048
========
OTHER ASSETS AND LIABILITIES,
NET -- 1.6% 3,119
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
17,980,002 outstanding shares
of beneficial interest 194,520
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
595,193 outstanding shares
of beneficial interest 6,275
Accumulated net realized loss on investments (1,340)
Net unrealized depreciation on investments (1,206)
Overdistributed net investment income (82)
--------
TOTAL NET ASSETS -- 100.0% $198,167
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $10.67
========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE-- CLASS A $10.63
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.63 / 97.00%) $10.96
========
- ------------------------------------------------
(A) -- VARIABLE RATE SECURITY- THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
(B) -- ZERO COUPON
(C) -- SECURITY IS BACKED BY LETTER OF CREDIT BY MAJOR FINANCIAL INSTITUTION
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AN -- ANTICIPATION NOTE
BAN -- BOND ANTICIPATION NOTE
ETM -- ESCROWED TO MATURITY
FGIA -- FEDERAL GUARANTY INSURANCE AGENCY
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FSA -- FEDERAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
See Accompanying Notes
81
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA OHIO TAX EXEMPT BOND FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH YEAR
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1999
(Unaudited) 1999 1998
----------------------- ------------------- -------------------
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 $ 11.03 $ 11.00 $ 11.13 $ 11.09 $ 10.86 $ 10.82
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.24 0.23 0.53 0.52 0.51 0.51
Net gain/(loss) on securities
(realized and unrealized) (0.35) (0.36) (0.09) (0.08) 0.28 0.28
-------- -------- -------- -------- -------- --------
Total from investment
operations (0.11) (0.13) 0.44 0.44 0.79 0.79
--------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.25) (0.24) (0.53) (0.52) (0.51) (0.51)
Distributions from net realized
capital gains (0.00) (0.00) (0.01) (0.01) (0.01) (0.01)
-------- -------- -------- -------- -------- --------
Total distributions (0.25) (0.24) (0.54) (0.53) (0.52) (0.52)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $ 10.67 $ 10.63 $ 11.03 $ 11.00 $ 11.13 $ 11.09
======== ======== ======== ======= ======== =======
TOTAL RETURN (0.87)%3 (0.93)%1,3 3.94% 3.93%1 7.43% 7.39%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $191,837 $ 6,330 $205,365 $4,808 $165,395 $ 4,037
Ratio of expenses to average
net assets 0.43%2 0.53%2 0.28% 0.38% 0.25% 0.25%
Ratio of net investment income
to average net assets 4.40%2 4.30%2 4.77% 4.67% 4.67% 4.59%
Ratio of expenses to average net
assets before fee waivers 0.72%2 0.82%2 0.78% 0.88% 0.80% 0.80%
Ratio of net investment income to
average net assets before fee
waivers 4.12%2 4.02%2 4.27% 4.17% 4.12% 4.04%
Portfolio turnover rate 15% 15% 19% 19% 15% 15%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
1997 1996 1995
--------------------- -------------------- --------------------
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 $ 10.70 $ 10.66 $ 10.74 $ 10.70 $ 10.57 $ 10.53
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT
OPERATIONS
Net investment income 0.51 0.51 0.50 0.50 0.50 0.50
Net gain/(loss) on securities
(realized and unrealized) 0.16 0.16 (0.04) (0.04) 0.17 0.17
-------- -------- -------- -------- -------- --------
Total from investment
operations 0.67 0.67 0.46 0.46 0.67 0.67
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS
Dividends from net
investment income (0.51) (0.51) (0.50) (0.50) (0.50) (0.50)
Distributions from net realized
capital gains (0.00) (0.00) (0.00) (0.00) (0.00) (0.00)
-------- -------- -------- -------- -------- --------
Total distributions (0.51) (0.51) (0.50) (0.50) (0.50) (0.50)
-------- -------- -------- -------- -------- --------
Net asset value, end of
period $10.86 $10.82 $ 10.70 $10.66 $10.74 $10.70
======== ======== ======== ======== ======== ========
TOTAL RETURN 6.37% 6.38%1 4.36% 4.35%1 6.61% 6.64%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) 91,366% 3,535 82,886 2,869 71,996 3,168
Ratio of expenses to average
net assets 0.24% 0.24% 0.26% 0.26% 0.24% 0.24%
Ratio of net investment income
to average net assets 4.71% 4.71% 4.68% 4.68% 4.82% 4.82%
Ratio of expenses to average net
assets before fee waivers 0.79% 0.79% 0.83% 0.83% 0.80% 0.78%
Ratio of net investment income to
average net assets before fee
waivers 4.16% 4.16% 4.11% 4.11% 4.26% 4.27%
Portfolio turnover rate 23% 23% 10% 10% 3% 3%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 ANNUALIZED
3 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
82
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA MUNICIPAL BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- 94.4%
PENNSYLVANIA -- 92.7%
Allegheny County, Hospital
Development Authority,
Magee Woman's Hospital
Project (RB) (ETM) Series O
10.125% 10/01/02 $ 80 $ 87
Allegheny County, Higher
Education Building Authority,
Duquesne University Project
(RB) (AMBAC)
6.500% 03/01/10 380 419
Allegheny County, Industrial
Development Authority (RB)
5.250% 12/01/14 650 654
Allegheny County, Higher
Education Community
College (RB) (MBIA)
5.800% 06/01/13 1,000 1,015
Allegheny County, Port Authority
Special Revenue (RB) (MBIA)
6.250% 03/01/17 685 712
Allegheny County, Sanitation
Authority Sewer (RB) (FGIC) (A)
0.000% 12/01/08 2,000 1,260
Ambridge Area School District
(GO) (FGIC)
4.750% 11/01/08 500 489
Bradford County, School District,
Prerefunded 10/01/05 @ 100
(GO) (FGIC)
5.250% 10/01/05 1,000 1,015
Bucks County, Community College
Authority, College Building (RB)
5.300% 06/15/10 100 100
Butler County, Sewer Authority,
Prerefunded 01/01/04 @100 (RB)
7.250% 01/01/04 105 112
Cumberland County, Messiah
College Project (RB) (AMBAC)
5.000% 10/01/07 1,000 1,002
Dauphin County, General Authority,
Mandatory Put 12/01/2005 @ 100
(RB) (AMBAC)
5.400% 06/01/26 800 826
Delaware County (GO)
5.000% 11/15/07 1,000 1,006
Delaware River Port Authority,
Pennsylvania & New Jersey
Bridges Project (RB) (AMBAC) (ETM)
6.000% 01/15/10 570 594
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Delaware Valley, Regional Finance
Authority (RB) (AMBAC) Series A
5.900% 04/15/16 $ 1,000 $ 1,009
Erie County, Prison Authority Lease,
Prerefunded 11/01/01 @100
(RB) (MBIA)
6.600% 11/01/01 1,000 1,042
Fairview School District (GO)
6.000% 02/15/07 1,140 1,211
Gettysburg College (RB) (MBIA)
5.375% 08/15/13 1,000 999
Indiana County, Industrial
Development Authority,
Pollution Control Revenue,
New York Electric & Gas
(MBIA) Series A
6.000% 06/01/06 1,000 1,062
Lehigh County, Industrial
Development Authority,
Pollution Control Revenue,
Pennsylvania Power & Light
Project (MBIA) Series A
6.400% 11/01/21 2,250 2,317
Lower Providence Township
(GO) (MBIA)
5.000% 05/01/07 215 216
Middletown Township,
Bucks County (RB) (ETM)
6.100% 10/01/00 70 71
Monroeville County, Hospital
Authority, East Suburban
Health Center Project,
Prerefunded 07/01/04 @ 100 (RB)
7.600% 07/01/08 850 931
Montgomery County, Hospital
Authority, Suburban General
Hospital Project (RB) (ETM)
7.750% 05/01/02 85 88
Moon Area School District
(GO) ( FGIC) (A) Series A
0.000% 11/15/11 1,520 800
Parkland School District (GO) (FGIC)
5.375% 09/01/14 1,000 989
Penn Hills Township (GO) (AMBAC)
5.500% 12/01/04 1,000 1,040
Pennsylvania State, Housing
Finance Agency, Single Family
Mortgage (RB) Series Z
7.000% 10/01/02 30 31
See Accompanying Notes
83
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA MUNICIPAL BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Pennsylvania State, Infrastructure
Investment Authority, Penvest
(RB) Series B
6.450% 09/01/04 $ 1,500 $ 1,601
Pennsylvania State, Infrastructure
Investment Authority, Penvest
(RB) Series A
5.000% 09/01/08 250 251
Pennsylvania State, Intergovernmental
Cooperative Authority, Special Tax,
City of Philadelphia Funding Program,
Prerefunded 06/15/02 (RB)
6.800% 06/15/02 500 528
Pennsylvania State, Intergovernmental
Cooperative Authority, Special Tax,
City of Philadelphia Funding Program
(RB) (FGIC)
5.000% 06/15/09 500 496
Pennsylvania State (GO) (AMBAC)
Series 1 5.125% 03/15/12 1,475 1,442
Pennsylvania State, Higher Education
Assistance Authority (RB) (FGIC)
Series A
6.800% 12/01/00 685 703
Pennsylvania State, Higher Education
Facilities Authority, University of
Pennsylvania Project (RB)
6.500% 09/01/04 250 270
Pennsylvania State, Higher Education
Facilities Authority, University of
Pennsylvania Project (RB) Series A
5.550% 09/01/09 1,300 1,328
Pennsylvania State, Industrial Economic
Development Authority
(RB) (AMBAC) Series 94
5.800% 07/01/09 700 733
Pennsylvania State, Industrial
Development Authority
(RB) (AMBAC)
6.000% 01/01/12 1,000 1,034
Pennsylvania State, Turnpike
Commission (RB) (FGIC) Series O
5.250% 12/01/01 1,010 1,029
Philadelphia Gas Works, Prerefunded
06/15/01 @102 (RB) Series 13
7.700% 06/15/01 460 492
Philadelphia Gas Works
(RB) (FSA) Series 14
6.250% 07/01/08 300 319
Par Value
Maturity (000) (000)
-------- ------- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Philadelphia, Thomas Jefferson
University Hospital (RB) (ETM)
7.000% 07/01/08 $ 205 $ 225
Philadelphia, Graduate Hospital
Project (RB) (ETM)
7.000% 07/01/10 365 394
Philadelphia, Water & Waste
Authority (RB) (MBIA)
5.500% 06/15/07 1,500 1,551
Philadelphia, Water & Waste
Authority (RB) (MBIA) Series 95
6.750% 08/01/03 200 215
Philadelphia, Water & Waste
Authority (RB) (MBIA)
6.250% 08/01/08 500 541
6.250% 08/01/11 200 216
Philadelphia, Hospital & Higher
Educational Facilities Authority,
Children's Hospital Project,
Prerefunded 02/15/02 @102
(RB) Series A
6.500% 02/15/02 200 212
Pittsburgh (GO) (MBIA) Series A
5.500% 09/01/06 955 988
Pleasant Valley School District
(RB) (FGIC)
5.000% 09/01/10 500 502
Quakertown General Authority
(RB) (VRDN) (A) Series A
3.800% 07/01/26 1,000 1,000
Scranton, Lackawanna Health &
Welfare, Moses Taylor Hospital
(ETM)
6.625% 07/01/09 465 494
Seneca Valley, School District,
Prerefunded 07/01/02 @100 (GO)
(FGIC) Series A
5.700% 07/01/06 1,000 1,031
Somerset County (GO) (AMBAC)
5.000% 10/01/14 550 511
State Public School Building Authority,
Montgomery County Community
College (RB)
4.600% 05/01/12 160 148
Swarthmore College Authority (RB)
5.250% 09/15/10 410 414
Swarthmore College Authority,
Callable 09/15/02 @ 102 (RB)
6.000% 09/15/06 700 735
Tyrone School District (GO) (MBIA)
5.700% 09/15/08 1,000 1,025
See Accompanying Notes
84
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA MUNICIPAL BOND FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- --------- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Union City, Higher Educational
Facilities Financing Authority,
Bucknell University Project
(RB) (MBIA)
6.200% 04/01/06 $ 1,000 $ 1,039
West Mifflin, Sewer Authority
(RB) (MBIA)
5.000% 08/01/14 250 232
West Whiteland, Municipal Sewer
Authority (RB) (ETM)
6.400% 09/15/13 240 262
Westmoreland County, Municipal
Authority (RB) (FGIC) (ETM)
2.000% 07/01/07 500 402
Westmoreland County, Municipal
Authority (RB) (FGIC) (ETM) (A)
0.000% 07/01/08 500 320
--------
43,780
--------
PUERTO RICO -- 1.7%
Commonwealth of Puerto Rico,
Public Finance Corporation
(RB) (AMBAC) Series A
5.375% 06/01/10 250 258
Commonwealth of Puerto Rico,
Public Improvement (GO) (MBIA)
6.250% 07/01/12 500 549
--------
807
--------
TOTAL MUNICIPAL BONDS
(Cost $44,386) 44,587
--------
CASH EQUIVALENT -- 3.5%
Federated Pennsylvania Cash
Trust 1,656 1,656
--------
TOTAL CASH EQUIVALENT
(Cost $1,656) 1,656
--------
TOTAL INVESTMENTS -- 97.9%
(Cost $46,042) $ 46,243
========
OTHER ASSETS AND LIABILITIES,
NET -- 2.1% 477
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
4,634,574 outstanding shares
of beneficial interest $46,410
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
12,733 outstanding shares
of beneficial interest 133
Accumulated net realized loss on investments (29)
Net unrealized appreciation on investments 201
Undistributed net investment income 5
--------
TOTAL NET ASSETS -- 100.0% $46,720
========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS I $10.06
========
NET ASSET VALUE REDEMPTION
PRICE PER SHARE-- CLASS A $10.07
========
MAXIMUM OFFERING PRICE PER
SHARE -- CLASS A ($10.07 / 97%) $10.38
========
- ------------------------------------------------
(A) ZERO COUPON BOND
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
ETM -- ESCROW TO MATURITY
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
VRDN -- VARIABLE RATE DEMAND NOTE
See Accompanying Notes
85
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA PENNSYLVANIA MUNICIPAL BOND FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999 1998
------------------- ------------------ ---------------------
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 $ 10.39 $ 10.40 $ 10.45 $10.45 $ 10.22 $10.22
------- ------ ------- ------ ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.22 0.21 0.51 0.48 0.46 0.45
Net gain/(loss) on securities
realized and unrealized) (0.31) (0.31) (0.07) (0.04) 0.24 0.24
------- ------ ------- ------ ------- ------
Total from investment operations (0.09) (0.10) 0.44 0.44 0.70 0.69
------- ------ ------- ------ ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.24) (0.23) (0.49) (0.48) (0.46) (0.45)
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) (0.01) (0.01)
------- ------ ------- ------ ------- ------
Total distributions (0.24) (0.23) (0.50) (0.49) (0.47) (0.46)
------- ------ ------- ------ ------- ------
Net asset value, end of period $ 10.06 $ 10.07 $ 10.39 $10.40 $ 10.45 $10.45
======= ====== ======= ====== ======= ======
TOTAL RETURN (0.60)%5 (0.75)%1,5 4.21% 4.21%1 6.95% 6.84%1
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $46,593 $ 127 $40,171 $ 218 $38,753 $ 125
Ratio of expenses to average
net assets 0.38%4 0.48%4 0.48% 0.58% 0.69% 0.77%
Ratio of net investment income
to average net assets 4.41%4 4.31%4 4.80% 4.70% 4.40% 4.32%
Ratio of expenses to average net
assets before fee waivers 0.38%4 0.48%4 0.83% 0.93% 0.84% 0.94%
Ratio of net investment income
to average net assets before
fee waivers 4.41%4 4.31%4 4.45% 4.35% 4.25% 4.15%
Portfolio turnover rate 8% 8% 15% 15% 20% 20%
</TABLE>
<TABLE>
<CAPTION>
For the Year For the For the For the
Ended May 31, Period Year Period
1997 Ended Ended Ended
-------------------- May 31, April 30, April 30,
Class I3 Class A2 1996(3) 1996(3) 1995(3)
-------- -------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of period $ 10.08 $10.13 $ 10.12 $10.04 $10.00
------- ------ ------- ------- ------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.44 0.31 0.04 0.43 0.29
Net gain/(loss) on securities
realized and unrealized) 0.17 0.12 (0.04) 0.08 0.04
------- ------ ------- ------- ------
Total from investment
operations 0.61 0.43 0.00 0.51 0.33
------- ------ ------- ------- ------
LESS DISTRIBUTIONS
Dividends from net investment
income (0.44) (0.31) (0.04) (0.43) (0.29)
Distributions from net realized
capital gains (0.02) (0.02) (0.00) (0.00) (0.00)
Distributions in excess of net
realized capital gains (0.01) (0.01) (0.00) (0.00) (0.00)
------- ------ ------- ------- ------
Total distributions (0.47) (0.34) (0.04) (0.43) (0.29)
------- ------ ------- ------- ------
Net asset value, end of period $ 10.22 $10.22 $ 10.08 $ 10.12 $10.04
------- ------ ------- ------- ------
TOTAL RETURN 6.21% 6.13%1,4 (0.03)%1,4 5.06%1 3.38%1,5
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $36,769 $ 81 $38,733 $38,809 $34,638
Ratio of expenses to average
net assets 0.87% 0.99%1 0.85%1 0.85% 0.85%1
Ratio of net investment income
to average net assets 4.35% 4.26%1 4.32%1 4.16% 4.05%1
Ratio of expenses to average net
assets before fee waivers 1.02% 1.00%1 1.31%1 1.24% 1.36%1
Ratio of net investment income
to average net assets before
fee waivers 4.20% 4.25%1 3.86%1 3.77% 3.54%1
Portfolio turnover rate 42% 42% 0% 22% 4%
</TABLE>
1 TOTAL RETURN EXCLUDES SALES CHARGE.
2 CLASS A COMMENCED OPERATIONS ON SEPTEMBER 11, 1996.
3 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.
4 ANNUALIZED.
5 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
86
<PAGE>
[GRAPHIC OMMITTED] STATEMENT OF NET ASSETS
ARMADA GOVERNMENT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- ---------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 79.1%
FEDERAL FARM CREDIT BANK -- 6.6%
Federal Farm Credit Bank, MTN
4.750% 12/01/99 $ 15,000 $ 15,000
Discount Notes+
5.250% 12/14/99 4,203 4,195
5.090% 12/15/99 10,000 9,980
5.330% 12/29/99 10,550 10,506
5.540% 01/24/00 25,000 24,792
5.450% 01/25/00 10,000 9,917
5.540% 01/26/00 8,502 8,429
5.550% 02/15/00 10,000 9,883
5.500% 02/25/00 10,000 9,868
5.450% 03/31/00 7,140 7,009
---------
109,579
---------
FEDERAL HOME LOAN BANK -- 21.9%
Discount Notes+
5.530% 01/12/00 10,000 9,936
5.565% 01/14/00 20,000 19,864
5.130% 01/19/00 20,000 19,860
5.210% 01/21/00 10,000 9,926
5.500% 01/26/00 30,000 29,746
5.530% 01/28/00 10,000 9,911
5.520% 01/31/00 20,000 19,819
5.520% 02/01/00 10,000 9,905
5.390% 02/02/00 20,000 19,810
5.531% 02/03/00 10,000 9,902
5.530% 02/11/00 10,000 9,889
5.510% 02/16/00 10,000 9,882
5.520% 02/22/00 10,000 9,873
5.560% 02/23/00 20,000 19,742
5.570% 03/02/00 10,000 9,858
5.510% 03/08/00 20,000 19,701
5.510% 04/17/00 8,653 8,470
5.580% 04/19/00 10,000 9,783
5.590% 04/26/00 10,000 9,772
5.490% 05/10/00 10,000 9,755
5.600% 05/17/00 10,000 9,739
5.550% 05/24/00 10,000 9,730
5.700% 10/06/00 10,000 9,995
Federal Home Loan Bank (A)
5.220% 12/01/99 10,000 10,000
5.706% 03/24/00 15,000 15,000
5.655% 04/14/00 15,000 14,997
5.666% 06/09/00 10,000 10,000
5.706% 07/14/00 10,000 10,000
---------
364,865
---------
Par Value
Maturity (000) (000)
-------- ----- ---------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL HOME LOAN MORTGAGE CORPORATION+-- 22.5%
5.260% 12/02/99 $ 10,000 $ 9,999
5.260% 12/03/99 10,000 9,997
5.110% 12/09/99 10,000 9,989
5.140% 12/10/99 10,000 9,987
5.240% 12/15/99 10,000 9,980
5.090% 12/17/99 10,000 9,976
5.220% 12/22/99 10,000 9,970
5.540% 01/10/00 10,000 9,938
5.540% 01/10/00 20,666 20,540
5.470% 01/12/00 10,000 9,936
5.470% 01/13/00 30,000 29,802
5.200% 01/18/00 10,000 9,931
5.110% 01/21/00 10,000 9,926
5.200% 01/25/00 8,000 7,936
5.480% 01/27/00 17,725 17,576
5.400% 02/03/00 10,000 9,904
5.470% 02/04/00 20,992 20,785
5.470% 02/07/00 10,000 9,897
5.520% 02/09/00 20,000 19,786
5.474% 02/10/00 20,000 19,785
5.530% 02/15/00 10,000 9,883
5.520% 02/23/00 10,000 9,871
5.540% 02/24/00 20,567 20,300
5.580% 02/28/00 10,000 9,862
5.520% 03/09/00 10,000 9,848
5.540% 03/16/00 20,000 19,674
5.470% 03/23/00 10,000 9,828
5.510% 03/30/00 10,000 9,816
5.450% 04/13/00 10,000 9,792
---------
374,514
---------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 22.2%
Discount Notes+
5.270% 12/02/99 10,000 9,999
5.265% 12/06/99 20,000 19,985
5.203% 12/07/99 10,000 9,991
5.260% 12/08/99 10,000 9,990
5.100% 12/10/99 20,000 19,974
5.230% 12/13/99 20,000 19,965
5.240% 12/15/99 15,000 14,969
5.530% 01/18/00 10,000 9,926
5.570% 01/20/00 40,000 39,709
5.520% 01/24/00 10,000 9,917
5.500% 02/02/00 20,000 19,807
5.490% 02/08/00 17,985 17,795
See Accompanying Notes
87
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA GOVERNMENT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- ---------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- CONTINUED
FEDERAL NATIONAL MORTGAGE ASSOCIATION-- CONTINUED
5.520% 02/10/00 $ 10,000 $ 9,891
5.590% 02/17/00 20,000 19,759
5.510% 02/24/00 10,000 9,870
5.525% 03/15/00 10,000 9,839
5.230% 03/16/00 10,000 9,838
5.530% 03/27/00 10,000 9,820
5.600% 04/06/00 10,000 9,802
5.600% 04/10/00 20,000 19,592
5.580% 04/17/00 10,000 9,786
5.480% 04/24/00 10,187 9,962
5.480% 04/25/00 10,000 9,778
5.590% 05/04/00 10,000 9,759
5.540% 05/18/00 20,000 19,481
Federal National Mortgage Association (A)
5.226% 08/02/00 10,000 9,996
----------
369,200
----------
STUDENT LOAN MARKETING ASSOCIATION -- 5.8%
Student Loan Marketing Association, MTN (A)
5.050% 02/11/00 10,000 10,000
6.055% 08/10/00 10,000 9,998
6.035% 10/27/00 20,000 19,984
6.055% 11/15/00 15,000 14,993
Student Loan Marketing Association
6.055% 11/12/00 12,000 11,998
Student Loan Marketing Association (A)
6.005% 12/16/99 15,000 15,000
6.005% 01/12/00 15,000 14,999
----------
96,972
----------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(Cost $1,315,130) 1,315,130
----------
REPURCHASE AGREEMENTS -- 20.7%
Credit Suisse First Boston 5.750%
(dated 11/30/99, matures 12/01/99,
repurchase price $ 230,036,736;
collateralized by GNMA obligations:
total market value
$ 235,561,851) 230,000 230,000
Lehman
5.690% (dated 11/30/99, matures
12/01/99, repurchase price $ 38,893,146;
collateralized by FNMA and GNMA
obligations: total market value
$ 39,665,640) 38,887 38,887
Par Value
(000) (000)
--------- ---------
REPURCHASE AGREEMENTS -- CONTINUED
Prudential
5.720% (dated 11/30/99, matures
12/01/99, repurchase price $ 75,011,917;
collateralized by FHLMC, FNMA and
U.S. Treasury obligations: total
market value $ 76,500,139) $75,000 $ 75,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $343,887) 343,887
----------
CASH EQUIVALENT -- 0.6%
Goldman Sachs Financial Square
Government Money Market
Fund 10,294 10,294
----------
TOTAL CASH EQUIVALENT
(Cost $10,294) 10,294
----------
TOTAL INVESTMENTS -- 100.4%
(COST $1,669,311) 1,669,311
==========
OTHER ASSETS AND LIABILITIES,
NET -- (0.4%) (6,725)
----------
NET ASSETS:
Portfolio Shares of Class I
(unlimited authorization -- no par value)
based on 1,079,832,992 outstanding shares
of beneficial interest 1,079,835
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
582,715,395 outstanding shares
of beneficial interest 582,716
Undistributed net investment income 38
Accumulated net realized loss on
investments (3)
----------
TOTAL NET ASSETS -- 100.0% $1,662,586
==========
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
(A) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999.
MTN -- MEDIUM TERM NOTE
See Accompanying Notes
88
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA GOVERNMENT MONEY MARKET FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999 1998
-------------------- ---------------------- ---------------------
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 2.42%2 2.35%2 4.86% 4.70% 5.30% 5.17%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $1,079,858 $582,728 $1,094,979 $565,095 $1,137,078 $247,281
Ratio of expenses to
average net assets 0.39%1 0.54%1 0.42% 0.57% 0.40% 0.52%
Ratio of net
investment income to
average net assets 4.81%1 4.66%1 4.76% 4.61% 5.17% 5.05%
Ratio of expenses to average net
assets before fee waivers 0.49%1 0.64%1 0.52% 0.67% 0.50% 0.62%
Ratio of net investment
income to average net assets
before fee waivers 4.71%1 4.56%1 4.66% 4.51% 5.07% 4.95%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
1997 1996 1995
------------------- -------------------- --------------------
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 0.05 0.05
LESS DISTRIBUTIONS
Dividends from net
investment income (0.05) (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
======== ======== ======== ======== ======== =======
TOTAL RETURN 5.15% 5.04% 5.41% 5.31% 4.97% 4.87%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $811,662 $159,129 $741,894 $131,194 $618,058 $19,174
Ratio of expenses to
average net assets 0.36% 0.47% 0.36% 0.46% 0.39% 0.51%
Ratio of
net investment income to
average net assets 5.03% 4.93% 5.27% 5.13% 4.83% 5.01%
Ratio of expenses to average net
assets before fee waivers 0.46% 0.57% 0.47% 0.57% 0.50% 0.63%
Ratio of net investment
income to average net assets
before fee waivers 4.93% 4.83% 5.16% 5.02% 4.72% 4.90%
</TABLE>
1 ANNUALIZED.
2 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
89
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER+ -- 80.6%
AGRICULTURE -- 1.9%
Cargill
5.700% 01/13/00 $ 15,000 $ 14,898
5.720% 01/14/00 12,475 12,388
5.420% 01/19/00 15,000 14,889
5.400% 01/20/00 15,000 14,887
5.420% 01/21/00 15,000 14,885
---------
71,947
---------
AUTO -- 2.6%
Daimler Chrysler
5.310% 12/08/99 15,000 14,985
5.310% 12/15/99 25,000 24,948
5.550% 02/02/00 15,000 14,854
5.590% 02/09/00 15,000 14,837
5.700% 03/01/00 15,000 14,784
5.890% 03/15/00 15,000 14,742
---------
99,150
---------
CHEMICALS -- 6.4%
Akzo Nobel
5.800% 03/02/00 18,750 18,472
5.840% 03/09/00 25,000 24,598
5.800% 03/13/00 10,000 9,834
5.850% 03/21/00 15,000 14,729
Colgate Palmolive
5.800% 01/20/00 8,500 8,432
Great Lakes Chemical
5.930% 01/19/00 25,000 24,798
5.930% 01/26/00 15,000 14,862
5.850% 01/31/00 10,000 9,901
Henkel
5.310% 12/14/99 10,000 9,981
5.320% 12/16/99 15,000 14,967
5.880% 01/27/00 12,000 11,888
6.000% 02/02/00 12,000 11,874
5.790% 02/11/00 17,000 16,803
Monsanto
5.400% 01/18/00 5,000 4,964
5.400% 01/19/00 10,000 9,926
5.770% 03/22/00 10,000 9,820
5.770% 03/24/00 13,980 13,725
5.770% 03/28/00 14,000 13,735
---------
243,309
---------
COMMUNICATIONS -- 2.0%
AT&T
5.280% 12/02/99 25,000 24,996
Bell Atlantic
5.840% 01/13/00 21,800 21,648
Bell South
5.800% 01/25/00 15,000 14,867
SBC Communications
5.800% 01/19/00 15,000 14,882
---------
76,393
---------
Par Value
Maturity (000) (000)
-------- -------- ---------
COMMERCIAL PAPER -- CONTINUED
DIVERSIFIED -- 4.0%
Bass Financial
5.330% 12/01/99 $ 15,610 $ 15,610
5.310% 12/06/99 15,000 14,989
5.870% 02/10/00 9,000 8,896
5.880% 02/23/00 14,190 13,995
General Electric Capital
5.330% 12/16/99 10,000 9,978
5.730% 02/23/00 5,000 4,933
4.910% 01/31/00 15,000 14,875
4.950% 02/03/00 10,000 9,912
5.080% 02/16/00 15,000 14,837
5.720% 02/16/00 15,000 14,816
5.720% 03/01/00 15,000 14,783
5.730% 03/22/00 15,000 14,733
---------
152,357
---------
ELECTRICAL UTILITIES -- 2.4%
Potomac Electric Power
5.950% 02/08/00 10,000 9,886
Southern California Edison
5.320% 12/15/99 10,000 9,979
Southern Company
5.900% 02/09/00 25,000 24,713
5.850% 02/10/00 22,000 21,746
5.650% 02/14/00 9,100 8,993
5.700% 02/23/00 15,000 14,800
---------
90,117
---------
ELECTRONICS & OTHER ELECTRICAL EQUIPMENT -- 1.8%
Eaton
5.470% 01/19/00 10,000 9,926
4.950% 01/31/00 15,000 14,874
Lucent Technologies
4.980% 01/26/00 15,000 14,884
4.910% 02/02/00 10,000 9,914
5.100% 02/22/00 10,000 9,882
Motorola Credit
5.800% 03/10/00 7,821 7,695
---------
67,175
---------
FABRICATED METAL PRODUCTS -- 1.8%
Gillette
5.280% 12/02/99 15,000 14,998
Stanley Works
5.300% 12/02/99 6,000 5,999
5.650% 02/09/00 9,650 9,544
5.720% 03/01/00 15,000 14,783
5.920% 03/15/00 10,000 9,827
5.750% 03/22/00 15,000 14,732
---------
69,883
---------
See Accompanying Notes
90
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- -----
COMMERCIAL PAPER -- CONTINUED
FINANCIAL CONDUIT -- 9.6%
Ciesco
5.350% 12/01/99 $ 25,000 $ 25,000
5.300% 12/08/99 15,000 14,985
5.350% 12/13/99 15,000 14,973
5.920% 01/20/00 15,000 14,877
5.800% 01/26/00 15,000 14,865
5.900% 02/09/00 15,000 14,828
Corporate Asset Funding
5.350% 12/02/99 10,000 9,999
5.300% 12/13/99 15,000 14,974
5.500% 12/16/99 10,000 9,977
5.800% 01/19/00 10,000 9,921
6.070% 01/26/00 28,664 28,394
5.910% 01/28/00 10,000 9,905
6.000% 02/10/00 15,000 14,822
Delaware Funding
5.950% 01/13/00 15,000 14,893
5.850% 01/18/00 10,000 9,922
6.100% 01/20/00 10,000 9,915
5.780% 01/24/00 35,000 34,690
5.820% 02/22/00 15,000 14,799
Preferred Receivables
5.360% 12/02/99 15,000 14,998
5.340% 12/20/99 15,000 14,958
6.000% 01/13/00 15,000 14,892
6.070% 01/18/00 15,000 14,879
6.010% 02/02/00 10,000 9,895
5.850% 02/07/00 15,000 14,834
---------
366,195
---------
FINANCIAL SERVICES -- 24.3%
Abbey National
4.970% 12/01/99 15,000 15,000
5.355% 12/03/99 15,000 14,996
5.340% 12/10/99 15,000 14,980
6.000% 01/24/00 10,000 9,910
5.800% 02/28/00 15,000 14,785
American Express
5.950% 01/19/00 15,000 14,879
5.980% 01/26/00 15,000 14,860
American Express -- Continued
5.810% 01/27/00 10,000 9,908
5.970% 01/31/00 30,000 29,700
5.970% 02/01/00 15,000 14,846
5.900% 02/02/00 15,000 14,845
Associates First Capital
5.320% 12/06/99 15,000 14,989
5.310% 12/08/99 5,000 4,995
5.700% 02/17/00 15,000 14,815
5.710% 03/01/00 15,000 14,783
Par Value
Maturity (000) (000)
-------- -------- ---------
COMMERCIAL PAPER -- CONTINUED
FINANCIAL SERVICES -- CONTINUED
Den Danske
5.340% 12/14/99 $ 20,000 $ 19,961
5.330% 12/22/99 15,000 14,953
5.980% 01/12/00 20,000 19,860
6.030% 01/25/00 15,000 14,862
6.050% 01/26/00 15,000 14,859
5.830% 02/28/00 15,000 14,784
Deutche Bank Financial
5.340% 12/15/99 15,000 14,969
5.860% 01/04/00 15,000 14,917
5.740% 01/19/00 15,000 14,883
Dresdner
5.350% 12/15/99 30,000 29,938
5.810% 01/10/00 25,000 24,839
5.400% 01/26/00 15,000 14,874
Ford Motor Credit
5.280% 12/15/99 10,000 9,979
5.810% 01/04/00 15,000 14,918
5.910% 01/06/00 15,000 14,911
5.710% 01/10/00 15,000 14,905
5.560% 01/31/00 15,000 14,859
5.830% 04/12/00 15,000 14,677
5.830% 04/19/00 15,000 14,660
General Motors Acceptance
5.420% 01/26/00 15,000 14,874
5.990% 01/26/00 15,000 14,860
5.690% 02/09/00 15,000 14,834
5.900% 02/09/00 15,000 14,828
5.700% 02/23/00 10,000 9,867
5.690% 02/24/00 15,000 14,798
5.380% 03/22/00 15,000 14,749
Household Finance
5.300% 12/02/99 15,000 14,998
5.700% 01/12/00 30,000 29,800
5.940% 01/18/00 15,000 14,881
5.710% 01/27/00 15,000 14,864
5.960% 02/02/00 10,000 9,896
5.650% 02/03/00 15,000 14,849
National Rural Utilities
5.800% 02/23/00 11,000 10,851
New York Life Capital
5.300% 12/02/99 15,000 14,998
5.300% 12/08/99 15,000 14,985
Paccar
5.850% 01/28/00 10,000 9,906
Pemex
5.320% 12/06/99 10,000 9,993
Svenska
5.330% 12/21/99 15,000 14,956
5.340% 12/29/99 25,000 24,896
5.880% 03/01/00 25,000 24,628
See Accompanying Notes
91
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- -------- ---------
COMMERCIAL PAPER -- CONTINUED
FINANCIAL SERVICES -- CONTINUED
Transamerica
6.000% 01/26/00 $ 15,000 $ 14,860
5.580% 02/02/00 10,000 9,902
5.820% 02/28/00 15,000 14,784
5.920% 03/07/00 5,000 4,920
5.700% 03/08/00 5,000 4,922
5.850% 04/12/00 15,000 14,676
5.720% 05/09/00 10,000 9,746
---------
928,020
---------
FOOD & BEVERAGE -- 4.9%
Archer Daniels
5.740% 04/05/00 15,000 14,699
Brown Foreman
5.620% 12/01/99 13,715 13,715
5.850% 01/14/00 7,650 7,595
5.900% 01/27/00 10,000 9,907
Cambell Soup
4.800% 12/01/99 15,000 15,000
Diageo
5.550% 01/12/00 10,000 9,935
5.950% 01/18/00 45,000 44,643
5.500% 02/09/00 15,000 14,840
5.800% 04/04/00 15,000 14,698
5.750% 04/06/00 15,000 14,696
Golden Peanut
5.900% 03/22/00 9,000 8,835
Sysco
5.950% 01/12/00 20,000 19,861
---------
188,424
---------
GLASS PRODUCTS -- 0.4%
Guardian Industries
6.000% 01/13/00 11,600 11,517
5.900% 01/28/00 5,000 4,952
---------
16,469
---------
INSURANCE -- 6.7%
Allstate
5.750% 02/02/00 15,000 14,849
5.740% 03/13/00 15,000 14,754
American General
5.830% 02/14/00 15,000 14,818
5.800% 03/01/00 15,000 14,780
5.810% 03/15/00 25,000 24,576
John Hancock Capital
6.000% 01/14/00 12,012 11,924
Par Value
Maturity (000) (000)
-------- --------- ---------
COMMERCIAL PAPER -- CONTINUED
INSURANCE -- CONTINUED
Prudential Funding
5.770% 01/10/00 $ 25,000 $ 24,837
5.900% 01/11/00 10,000 9,933
5.750% 01/12/00 15,000 14,899
5.750% 01/19/00 10,000 9,922
6.000% 01/26/00 40,000 39,630
St. Paul
5.630% 02/09/00 15,000 14,836
5.800% 02/10/00 15,000 14,828
5.700% 02/23/00 30,000 29,593
---------
254,179
---------
MACHINERY & EQUIPMENT -- 2.1%
Caterpillar Financial
5.780% 02/28/00 15,000 14,786
5.800% 03/16/00 17,200 16,906
Fortune Brands
5.400% 02/18/00 15,000 14,822
John Deere Capital
5.820% 01/12/00 15,000 14,898
5.750% 02/16/00 20,000 19,754
---------
81,166
---------
MISCELLANEOUS MANUFACTURING -- 1.3%
Hasbro
5.310% 12/09/99 14,380 14,363
5.300% 12/15/99 10,859 10,837
5.380% 01/10/00 10,000 9,940
5.030% 01/19/00 15,000 14,897
---------
50,037
---------
OIL & GAS -- 1.8%
Atlantic Richfield
5.300% 12/02/99 15,000 14,998
Baker Hughes
5.690% 12/01/99 38,325 38,325
BP Amoco
4.860% 01/24/00 15,000 14,891
---------
68,214
---------
PAPER & PAPER PRODUCTS -- 0.4%
Sonoco Products
5.750% 03/14/00 15,000 14,751
---------
PHARMACEUTICALS -- 3.6%
American Home Products
5.420% 01/25/00 15,000 14,876
5.980% 02/02/00 15,000 14,843
5.720% 02/16/00 15,000 14,816
5.800% 02/22/00 5,836 5,758
5.700% 03/06/00 15,000 14,772
5.750% 03/27/00 15,000 14,720
See Accompanying Notes
92
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- -------- ---------
COMMERCIAL PAPER -- CONTINUED
PHARMACEUTICALS -- CONTINUED
Glaxo Wellcome
5.780% 02/09/00 $ 10,000 $ 9,888
5.920% 02/23/00 25,000 24,655
5.850% 03/10/00 25,000 24,594
----------
138,922
----------
PHOTOGRAPHY -- 0.4%
Eastman Kodak
5.890% 01/19/00 15,000 14,880
----------
PRIMARY METAL INDUSTRIES -- 0.8%
Aluminum Company of America
5.300% 12/01/99 15,000 15,000
5.300% 12/08/99 15,000 14,985
----------
PRINTING & PUBLISHING -- 0.5%
Gannett
5.950% 01/19/00 20,000 19,838
----------
RETAIL STORES -- 0.9%
Wal-Mart
5.600% 12/01/99 35,000 35,000
----------
29,985
----------
TOTAL COMMERCIAL PAPER
(Cost $3,076,411) 3,076,411
----------
YANKEE CERTIFICATES OF DEPOSIT -- 4.2%
Abbey National Treasury
5.130% 05/04/00 15,000 14,996
Bank of Montreal, Chicago
5.160% 05/03/00 15,000 14,998
Bayerische Landisbank
5.400% 12/08/99 20,000 20,000
5.940% 01/05/00 20,000 20,000
Deutsche Bank, New York
5.050% 02/09/00 15,000 14,998
5.150% 04/25/00 25,000 24,997
Rabobank, New York
5.130% 04/27/00 25,000 24,995
Royal Bank, Canada
5.300% 12/29/99 15,000 14,938
UBS AG, Connecticut
5.600% 06/14/00 10,000 9,998
----------
TOTAL YANKEE CERTIFICATES OF DEPOSIT
(Cost $159,920) 159,920
----------
Par Value
Maturity (000) (000)
-------- ----- ---------
FLOATING RATE NOTES (A) -- 3.7%
Allstate Funding
5.488% 12/01/99 $ 10,000 $ 10,000
6.084% 03/31/00 10,000 10,000
5.573% 08/31/00 10,000 10,000
AT&T
6.136% 07/13/00 15,000 14,996
Ciesco
5.493% 08/17/00 15,000 14,997
Comerica
5.429% 09/01/00 15,000 14,994
Daimler Chrysler N.A.
5.283% 07/06/00 15,000 14,989
Key Bank NA
5.730% 03/20/00 10,000 9,993
Transamerica
6.354% 04/06/00 10,000 10,007
Travelers Funding
6.139% 03/31/00 15,000 15,000
5.499% 08/17/00 15,000 15,000
----------
Total Floating Rate Notes
(Cost $139,976) 139,976
----------
U.S. GOVERNMENT AGENCY
OBLIGATIONS -- 5.3%
Federal National Mortgage Association
5.265%+ 12/06/99 50,000 49,963
Federal Home Loan Bank (A)
5.706% 03/24/00 25,000 25,000
Student Loan Marketing Association, MTN (A)
5.050% 02/11/00 24,000 24,000
6.055% 08/10/00 25,000 24,995
6.035% 10/27/00 30,000 29,976
6.055% 11/15/00 50,000 49,977
----------
Total U.S. Government Agency
Obligations
(Cost $203,911) 203,911
----------
REPURCHASE AGREEMENTS -- 7.7%
Credit Suisse First Boston 5.750%
(dated 11/30/99, matures 12/01/99,
repurchase price $ 205,032,743;
collateralized by GNMA obligations:
total market value $ 209,276,506) 205,000 205,000
See Accompanying Notes
93
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
(000) (000)
------- ---------
REPURCHASE AGREEMENTS -- CONTINUED
Lehman
5.690% (dated 11/30/99, matures
12/01/99, repurchase price $ 64,212,147;
collateralized by FHLMC, FNMA,
and GNMA obligations: total market
value $ 65,277,004) $ 64,202 $ 64,202
Prudential
5.720% (dated 11/30/99, matures
12/01/99, repurchase price
$ 25,003,972; collateralized by
FHLMC obligation: market
value $ 25,500,173) 25,000 25,000
----------
TOTAL REPURCHASE AGREEMENTS
(Cost $294,202) 294,202
----------
CASH EQUIVALENT -- 0.3%
Goldman Sachs Financial Square
Premium Money Market
Fund 11,416 11,416
----------
TOTAL CASH EQUIVALENT
(Cost $11,416) 11,416
----------
TOTAL INVESTMENTS -- 101.8%
(Cost $3,885,836) $3,885,836
==========
OTHER ASSETS AND LIABILITIES,
NET -- (1.8%) (67,393)
----------
NET ASSETS:
Portfolio Shares of Class I
(unlimited authorization --
no par value) based on
2,220,283,156 outstanding shares
of beneficial interest 2,220,276
Portfolio Shares of Class A (unlimited
authorization -- no par value) based
on 1,598,087,824 outstanding shares
of beneficial interest 1,598,088
Value
(000)
---------
Portfolio Shares of Class B (unlimited
authorization -- no par value) based on
231,081 outstanding shares
of beneficial interest $ 231
Accumulated net realized loss on investments (11)
Overdistributed net investment income (141)
----------
TOTAL NET ASSETS -- 100.0% $3,818,443
==========
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, OFFERING AND
REDEMPTION PRICE PER
SHARE -- CLASS B $1.00
==========
- ------------------------------------------------
+ EFFECTIVE YIELD
(A) VARIABLE RATE SECURITIES - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30, 1999
FHLB -- FEDERAL HOME LOAN BANK
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SLMA -- STUDENT LOAN MARKETING ASSOCIATION
See Accompanying Notes
94
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA MONEY MARKET FUND
FOR A FUND SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months
Ended November 30, 1999 For the Year Ended May 31,
(Unaudited) 1999
---------- ---------- ------- ---------- ---------- -------
Class I Class A Class B Class I Class A Class B
---------- ---------- ------- ---------- ---------- -------
<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 0.02 0.05 0.05 0.04
LESS DISTRIBUTIONS
Dividends from
net investment
income (0.02) (0.02) (0.02) (0.05) (0.05) (0.04)
---------- ---------- ----- ---------- ---------- -------
Net asset value,
end of period $ 1.00 $ 1.00 $1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ===== ========== ========== =======
TOTAL RETURN 2.47%3 2.39%3 2.03%3 4.96% 4.82% 4.21%
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period
(in 000's) $2,220,015 $1,598,198 $ 230 $2,133,839 $1,360,644 $ 27
Ratio of expenses
to average
net assets 0.40%2 0.55%2 1.30%2 0.42% 0.56% 1.27%
Ratio of net
investment
income to
average net
assets 4.91%2 4.76%2 4.01%2 4.82% 4.68% 3.97%
Ratio of expenses
to average
net assets
before fee
waivers 0.50%2 0.65%2 1.40%2 0.52% 0.66% 1.37%
Ratio of net
investment
income to
average net
assets before fee
waivers 4.81%2 4.66%2 3.91%2 4.72% 4.58% 3.87%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
1998 1997 1996 1995
--------------------------------- ---------------------- ---------------------- --------------------
Class I Class A Class B1 Class I Class A Class I Class A Class I Class A
---------- -------- ------ ---------- ------- ---------- -------- ------- --------
<S> <C> <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 $ 1.00
---------- -------- ------ ---------- ------- ---------- -------- ---------- --------
INCOME FROM
INVESTMENT
OPERATIONS
Net investment
income 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
LESS DISTRIBUTIONS
Dividends from
net investment
income (0.05) (0.05) (0.05) (0.05) (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 $ 1.00
========== ======== ====== ========== ======= ========== ======== ========== ========
TOTAL RETURN 5.39% 5.26% 5.04%2 5.19% 5.09% 5.45% 5.35% 5.11% 5.01%
RATIOS/SUPPLEMENTAL DATA
Net assets,
end of period
(in 000's) $1,911,689 $696,893 $ 5 $1,943,021 $346,172 $1,344,414 $343,087 $1,083,243 $175,192
Ratio of expenses
to average
net assets 0.38% 0.51% 1.22%2 0.37% 0.47% 0.37% 0.47% 0.37% 0.47%
Ratio of net
investment
income to
average net
assets 5.27% 5.14% 4.39%2 5.07% 4.97% 5.30% 5.18% 5.07% 5.12%
Ratio of expenses
to average
net assets
before fee
waivers 0.48% 0.61% 1.27%2 0.47% 0.57% 0.48% 0.58% 0.48% 0.58%
Ratio of net
investment
income to
average net
assets before fee
waivers 5.17% 5.08% 4.31%2 4.97% 4.87% 5.19% 5.07% 4.96% 5.01%
</TABLE>
1 CLASS B COMMENCED OPERATIONS JANUARY 5, 1998.
2 ANNUALIZED.
3 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
95
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO MUNICIPAL MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ ---------
MUNICIPAL BONDS -- 98.4%
OHIO -- 98.4%
Allen County (BAN)
4.250% 09/14/00 $ 645 $ 646
Allen County, Health Care Facilities,
Mennonite Memorial Home
Project (RB) (A)
3.900% 02/01/18 3,355 3,355
Barberton (BAN)
3.700% 04/20/00 725 726
Bellbrook (BAN)
4.250% 10/20/00 1,000 1,002
Butler County (BAN)
4.250% 09/27/00 1,225 1,230
Canton, Pension (GO) (AMBAC)
3.150% 12/01/99 230 230
Canton (BAN)
3.910% 06/08/00 2,625 2,629
Centerville Healthcare (RB) (A)
4.000% 05/01/08 7,100 7,100
Chillicothe (BAN)
4.210% 09/15/00 675 677
Cleveland Heights (BAN)
3.820% 08/25/00 1,035 1,036
Columbus Sewer & Water
Improvement (RB) (A)
Series 1995-1
3.700% 06/01/16 2,450 2,450
Columbus (GO) (A) Series 1
3.700% 12/01/17 5,000 5,000
Columbus Sewer Authority
(RB) (A) (B)
3.800% 06/01/11 3,100 3,100
Coshocton County Hospital (RB) (A)
3.900% 03/01/19 5,000 5,000
Cuyahoga County, Health
Care, Applewood Center (RB) (A)
3.970% 11/01/14 1,250 1,250
Cuyahoga County, University
Healthcare System (RB) (A) (B)
3.900% 01/15/29 3,000 3,000
Cuyahoga County, Ohio University
Hospital Cleveland (RB)
3.600% 01/01/16 675 675
Cuyahoga County, Hospital Facilities
Authority, Cleveland Clinic Foundation
(RB) (A)
Series 1996-A
3.900% 01/01/26 2,000 2,000
Series 1997-D
3.800% 01/01/26 5,050 5,050
Cuyahoga County, Industrial
Development Authority, Allen
Group Project (RB) (A)
3.800% 12/01/15 1,600 1,600
Par Value
Maturity (000) (000)
-------- ------- --------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Dayton (GO) (AN)
3.400% 03/03/00 $ 1,000 $ 1,000
Eastlake (GO) (BAN)
4.500% 07/27/00 350 352
Euclid County, School District (BAN)
3.700% 07/28/00 2,055 2,058
Evandale, Industrial Development
Authority, Ohio Edison
Project (RB) (A)
3.850% 09/01/15 3,900 3,900
Fairfield (BAN)
3.900% 08/24/00 1,900 1,903
Franklin County, Hospital Authority,
Holy Cross Health System (RB) (A)
3.850% 06/01/16 3,000 3,000
Hillard (GO) Series B
5.150% 12/01/99 280 280
Kent City (GO) (BAN)
4.750% 07/20/00 525 528
Lancaster (GO) (BAN)
3.600% 04/27/00 1,400 1,402
Lima Memorial Hospital
(RB) (A) Series 1996
4.000% 12/01/10 4,210 4,210
Lorain County, Industrial
Development Authority, Regional
Medical Center (RB) (A)
4.000% 05/01/22 1,675 1,675
Louisville (GO) (BAN)
4.000% 05/03/00 1,200 1,202
Lucas County, Facility Improvement
(RB) (A)
3.900% 10/01/05 1,000 1,000
Marysville (GO) (BAN)
3.460% 04/13/00 900 901
Mason City, School District
(GO) (BAN)
3.680% 01/27/00 415 415
Masillion (GO) (BAN)
3.980% 01/14/00 550 550
Massilion (BAN)
4.070% 01/14/00 1,200 1,201
Mayfield, School District (GO) (BAN)
3.450% 04/20/00 540 540
Medina County, Construction
Note (GO)
3.500% 06/15/00 1,000 1,001
Medina County (BAN)
4.125% 08/31/00 195 196
See Accompanying Notes
96
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO MUNICIPAL MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ----- ------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Mentor (GO) (BAN)
3.850% 08/03/00 $ 685 $ 686
Miamisburg (BAN)
4.200% 09/22/00 530 532
Middleburg Heights City (GO) (BAN)
3.850% 08/10/00 1,200 1,202
Muskingum County (BAN)
4.250% 11/30/00 505 506
New Albany (GO) (MBIA)
3.100% 12/01/99 135 135
Ohio School District, 1999 Cash
Flow Borrowing Program (AN)
4.140% 06/30/00 1,000 1,004
Ohio State Infra Structure (GO)
4.500% 02/01/00 1,090 1,092
Ohio State, Air Quality, Cleveland
Electric & Illumination (TECP)
3.650% 12/10/99 4,000 4,000
3.450% 01/21/00 1,000 1,000
3.650% 02/09/00 2,500 2,500
Ohio State, Air Quality Development
Authority, Cincinnati Gas &
Electric Project (RB) (A)
3.700% 09/01/30 2,600 2,600
Ohio State, Air Quality,
USX Corp. Project (TECP)
3.850% 05/01/00 2,115 2,115
Ohio State, Air Quality Development
Authority, Cincinnati Gas &
Electric Project (RB) (A)
Series 1985-A
3.950% 12/01/15 2,700 2,700
Ohio State, Air Quality Development
Authority, Cincinnati Gas &
Electric (RB) (A) (B)
3.950% 12/01/15 600 600
Ohio State, Air Quality Development
Authority, Timken Project (RB) (A)
3.900% 07/01/03 2,000 2,000
Ohio State, Air Quality, Duquesne Light
(TECP) (AMBAC)
3.900% 01/19/00 3,500 3,500
Ohio State, Environmental Association,
U.S. Steel (RB) (A)
3.900% 12/01/01 1,000 1,000
Ohio State, Higher Educational
Facilities, Mount Union College
Project (RB) (A)
3.900% 09/01/20 980 980
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Ohio State, Higher Educational
Facilities, Kenyon College (RB) (A)
3.950% 08/01/03 $ 3,700 $ 3,700
Ohio State, Pollution Control (RB) (A)
3.800% 05/01/22 2,000 2,000
Ohio State, Pollution Control
Water Project (A)
3.800% 05/01/22 900 900
Ohio State, Higher Educational
Facilities (RB) Series A-1
4.500% 12/01/99 1,250 1,250
Ohio State, Public Facilities
Commission (RB) Series II-A
5.625% 12/01/99 500 500
Ohio State University (TECP)
3.500% 12/02/99 3,000 3,000
Ohio State University, General
Receipts (RB) (A) Series 1985-B
4.250% 12/01/01 155 155
Ohio State University, General
Receipts (RB) (B) Series 1986-B
4.250% 12/01/06 1,550 1,550
Ohio State, Water Development
Authority, Cleveland Electric
Project (RB) Series B (A)
3.900% 08/01/20 4,000 4,000
Ohio State, Water Development
Authority (RB) (A)
3.950% 07/01/32 200 200
Orange County, School District (BAN)
3.640% 07/20/00 2,300 2,303
Richmond Heights (BAN) (GO)
4.350% 05/15/00 825 827
Ridgewood, School District (BAN)
4.150% 04/15/00 1,300 1,304
Ross County, Hospital Facilities
Authority, Adena Health System
(RB) (A) Series 1998
3.900% 12/01/23 2,800 2,800
Ross County, Hospital Facilities
Authority, Medical Center
Hospital Project (RB) (A)
3.900% 12/01/20 1,020 1,020
Rossford, Special Obligation Note,
Exempted Village (AN)
4.000% 12/01/99 270 270
Saint Clairsville (GO) (BAN)
3.510% 05/04/00 370 370
Saint Mary School District (BAN)
3.840% 02/23/00 709 710
See Accompanying Notes
97
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA OHIO MUNICIPAL MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Scioto County, Veteran Hospital
Administration, Central Capital
Asset Financing Program
(RB) (AMBAC) (A) Series B
3.950% 12/01/25 $ 2,725 $ 2,725
Scioto County, Veteran Hospital
Administration, Central Capital Asset
Financing Program (RB) (AMBAC) (A)
Series 1985-C
3.950% 12/01/25 815 815
Scioto County, Veteran Hospital
Administration, Central Capital
Asset Financing Program
(RB) (AMBAC) (A) (B) Series D
3.950% 12/01/25 100 100
Scioto County, Veteran Hospital
Administration, Central Capital
Asset Financing Program
(RB) (A) (B) Series E (AMBAC)
3.950% 12/01/25 590 590
Scioto County, Veteran Hospital
Administration, Central Capital
Asset Financing Program (RB)
(AMBAC) (A) Series F
3.950% 12/01/25 2,030 2,030
Scioto County, Veteran Hospital
Administration, Central Capital
Asset Financing Program
(RB) (A) (B) Series G (AMBAC)
3.950% 12/01/25 800 800
Sevin Hills (GO) (BAN)
4.250% 05/25/00 1,500 1,504
Southwestern City, School District
(GO) (AMBAC)
3.000% 12/01/99 1,260 1,260
Southwestern City, School District
(BAN)
4.125% 06/13/00 500 501
Toledo City, Services Special
Assessment Note (RB) (A)
3.900% 06/01/00 2,000 2,000
Warren County, Industrial
Development Authority, Cincinnati
Electric Project (RB) (A)
4.100% 09/01/15 7,650 7,650
Warren County, Healthcare Facilities,
Otterbein Homes (RB) (A)
3.850% 07/01/23 3,900 3,900
Willowick (GO) (BAN)
3.625% 04/27/00 800 801
Par Value
(000) (000)
------- -------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Wooster, Industrial Development
Authority, Allen Group Project
(RB) (A)
4.100% 12/01/10 $ 2,100 $ 2,100
--------
156,857
--------
TOTAL MUNICIPAL BONDS
(Cost $156,857) 156,857
--------
CASH EQUIVALENTS -- 1.3%
Blackrock Funds Ohio Municipal
Money Market Portfolio 1,000 1,000
Federated Ohio Cash Trust 1,127 1,127
--------
TOTAL CASH EQUIVALENTS
(Cost $2,127) 2,127
--------
TOTAL INVESTMENTS -- 99.7%
(Cost $158,984) $158,984
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.3% 406
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
129,474,506 outstanding shares
of beneficial interest 129,475
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
29,974,107 outstanding shares
of beneficial interest 29,973
Overdistributed net investment income (58)
--------
TOTAL NET ASSETS -- 100.0% $159,390
========
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 31, 1999.
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AN -- ANTICIPATION NOTE
BAN -- BOND ANTICIPATION NOTE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
TECP -- TAX EXEMPT COMMERCIAL PAPER
See Accompanying Notes
98
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA OHIO MUNICIPAL MONEY MARKET FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months Ended
November 30, 1999 For the Period
(Unaudited) Ended May 31, 1999
--------------------------- ------------------------
Class I Class A Class I1 Class A1
-------- ------- ------- -------
<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 0.02 0.01 0.02 0.02
-------- ------- ------- -------
LESS DISTRIBUTIONS
Dividends from net investment income (0.02) (0.01) (0.02) (0.02)
-------- ------- ------- -------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= =======
TOTAL RETURN 1.48%3 1.40%3 2.01%3 1.50%3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in 000's) $129,424 $29,966 $99,342 $11,019
Ratio of expenses to average net assets 0.41%2 0.57%2 0.35%2 0.50%2
Ratio of net investment income to average net assets 2.90%2 2.78%2 2.77%2 2.62%2
Ratio of expenses to average net assets before
fee waivers 0.61%2 0.77%2 0.55%2 0.70%2
Ratio of net investment income to average net assets
before fee waivers 2.70%2 2.58%2 2.57%2 2.42%2
</TABLE>
1 CLASS I AND CLASS A COMMENCED OPERATIONS ON SEPTEMBER 15, 1998 AND NOVEMBER 2,
1998, RESPECTIVELY.
2 ANNUALIZED.
3 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
99
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- 94.1%
PENNSYLVANIA -- 94.1%
Allegheny County, Hospital
Development Authority,
Presbyterian University Hospital
Project (RB) (A) (B) Series B-3
4.000% 03/01/18 $ 1,000 $ 1,000
Allegheny County, Industrial
Development Authority, Longwood
At Oakmont (RB) (A) (B)
3.700% 07/01/27 2,000 2,000
Allegheny County, Industrial
Development Authority,
Environmental Improvement,
USX Corp. Project
(RB) (A) (B)
3.850% 12/01/32 6,000 6,000
Allegheny County, Higher Education
Building Authority, University of
Pittsburgh Project
(RB) (B) Series 1985 B
3.750% 07/01/15 1,080 1,080
Allegheny County, Port Authority
(AN) (B)
4.000% 06/30/00 2,000 2,008
Alleghney County, Port Authority
(RB) (AMBAC)
5.000% 03/01/00 850 852
Altoona, Area School District (GO)
4.900% 01/15/00 2,000 2,005
Beaver County, Industrial
Development Authority, Duquesne
Series D
3.900% 01/26/00 2,600 2,600
Series E
3.900% 01/26/00 2,100 2,100
Beaver County, Pollution Control
Revenue, Atlantic Richfield Project
(RB) (A) (B)
3.850% 12/01/20 2,000 2,000
Boyertown Area School District (GO)
3.800% 03/01/00 290 290
Bucks County, Industrial Development
Authority, Edgecomb Metals
(RB) (A) (B)
3.900% 10/01/09 2,500 2,500
Par Value
Maturity (000) (000)
-------- ------- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Bucks County, Industrial Development
Authority, USX Corporation Project
(RB) (A) Series 1995
3.850% 05/01/00 $ 3,250 $ 3,250
Bucks County, Water & Sewer
Authority, Neshaminy Interceptor
Sewer System (RB)
5.000% 12/01/99 175 175
Chester County (GO)
4.550% 12/15/99 400 400
Delaware County, Industrial
Development Authority
(RB) (A) (B) Series 1985
3.800% 12/01/09 1,500 1,500
Delaware County, Industrial
Development Authority, PECO
Energy (RB) (A) (B) Series A
3.650% 08/01/16 1,000 1,000
Delaware County, Industrial
Development Authority, Scott
Paper Project (RB) (A) (B)
Series 1984-A
3.900% 12/01/18 1,900 1,900
3.900% 12/01/18 2,600 2,600
Delaware County, Industrial
Development Authority, United
Parcel Service Project
(RB) (B) Series 1985
3.600% 12/01/15 600 600
Delaware County, Pollution Control
Revenue, PECO Energy
(TECP) (FGIC)
3.500% 12/09/99 1,000 1,000
3.650% 01/18/00 2,000 2,000
Delaware County, Villanova
University (RB)
3.100% 12/01/99 770 770
Delaware Valley, Finance Authority,
Local Government
(RB) (A) (B) Series D
3.800% 08/01/16 2,700 2,700
See Accompanying Notes
100
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Emmaus, General Authority
(RB) (A) (B) (FSA)
3.900% 12/01/28 $ 3,000 $ 3,000
Emmaus, General Authority
(RB) (A) (B)
3.950% 03/01/24 4,400 4,400
Geisinger Authority, Pennsylvania
Health System, Penn State
Geisinger Health (RB) (A)
Series 1998-B
3.800% 08/15/28 1,000 1,000
Iroquois School District (GO)
4.500% 06/01/00 2,500 2,509
Lancaster, Higher Education
Authority, Franklin & Marshall
College Project (RB) (A) (B)
Series 1997
3.970% 04/15/27 3,995 3,995
Lebanon, Water Authority (RB)
3.100% 12/15/99 415 415
Lehigh County, Callable
08/01/00 @102 (GO) (FGIC)
6.900% 08/01/00 2,500 2,600
Lehigh County (RB) (MBIA)
(A) (B) Series B
3.650% 07/01/29 900 900
Lehigh County General Purpose,
Lehigh Valley Hospital
(RB) (B) Series A
3.650% 07/01/28 400 400
Mercersburg, General Purpose
Authority, Mercersburg College
Project (RB) (A) (B) Series 1997
3.950% 11/01/27 1,000 1,000
Montgomery County, Industrial
Development Authority, PECO
Energy (TECP)
3.450% 01/21/00 1,000 1,000
Montgomery County, Pollution
Control Revenue, PECO Energy
(TECP) (A)
3.650% 12/10/99 2,000 2,000
3.600% 01/20/00 2,500 2,500
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Montgomery County, Pollution
Control Revenue, PECO Energy
(TECP) (A) Series 1994 A
3.700% 01/24/00 $ 2,000 $ 2,000
3.800% 01/27/00 2,000 2,000
Northampton County, Higher
Education Authority, Lafayette
College (RB) (A) (B) Series B
4.000% 11/01/28 1,500 1,500
Northeast Pennsylvania, Hospital
Authority (TECP) (MBIA) (B)
3.800% 02/17/00 1,000 1,000
Northern Cambria School District
(GO) (AMBAC)
5.100% 09/01/00 300 303
Old Forge School District (TRAN) (B)
4.300% 06/30/00 1,572 1,575
Pen Argyl School District (TRAN) (B)
3.750% 06/30/00 1,700 1,701
Pennsylvania State (GO) Series 1
4.625% 05/01/00 1,000 1,006
Pennsylvania State (TECP)
3.600% 01/19/00 3,000 3,000
3.550% 01/25/00 2,000 2,000
3.800% 11/01/00 3,000 3,000
Pennsylvania State, Higher
Educational Facilities Authority,
University of Pennsylvania,
Health Services Project
(RB) (A) (B) Series C
3.850% 01/01/26 5,000 5,000
Pennsylvania State, Higher
Education Authority, Valley Forge
Academy (TECP) (A)
3.800% 11/01/00 2,000 2,000
Pennsylvania State, Turnpike
Commission (RB) Series K
7.500% 12/01/99 200 204
Pennsylvania State, Turnpike
Commission (RB) Series P
5.100% 12/01/99 150 150
Pennsylvania State, Turnpike
Commission Series Q (B)
3.700% 06/01/28 3,000 3,000
See Accompanying Notes
101
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Pennsylvania State University (RB)
4.950% 08/15/00 $ 500 $ 504
Philadelphia (TRAN) Series A
4.250% 06/30/00 2,000 2,008
Philadelphia, Industrial Development
Revenue, Chemical Heritage
Foundation Project (RB) (B)
3.900% 07/01/27 1,000 1,000
Philadelphia, Hospital & Higher
Educational Facility Authority,
Children's Hospital Project
(RB) (B) Series 1992-B
3.750% 03/01/27 4,100 4,100
Philadelphia, Hospital & Higher
Educational Facility Authority,
Children's Hospital (RB)
4.750% 02/15/00 375 376
Pittsburgh, Urban Redevelopment
Authority, (RB) Series D
3.150% 12/01/99 1,170 1,170
Quakertown, Hospital Facilities
Authority (RB) (A)
3.800% 07/01/05 2,800 2,800
Sayre, Healthcare Center Facility
Authority (RB) (AMBAC) (A)
3.900% 12/01/20 2,000 2,000
Scranton-Lackawanna, Health &
Welfare Authority, University of
Scranton (RB) (A)
3.900% 05/01/18 1,665 1,665
Shaler Area School District
(GO) (FSA) Series B
3.750% 09/01/00 600 601
State, Pittsburgh Urban Mortgage
Redevelopment Authority,
Callable 04/01/2000 @ 100
(RB) Series 1999
3.545% 08/15/00 1,045 1,045
Par Value
Maturity (000) (000)
-------- ------- --------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Temple University Funding,
Callable 12/13/99 @100
(GO) Series 1999
3.150% 05/12/00 $ 1,000 $ 1,000
Venango, Pollution Control
Revenue (RB) (A) (B)
4.000% 12/01/12 895 895
Western Berks Water Authority
(RB) (FSA) Series A
3.900% 04/01/00 535 536
York County, Industrial Development
Authority, PECO Energy Project
(RB) (A) (B) Series A
3.650% 08/01/16 1,400 1,400
York County, Industrial Development
Authority, Public Service Electric &
Gas Project (RB) (MBIA) (B)
Series 1995-A
3.850% 09/01/20 600 600
York County, City School District
(GO) (FGIC) (A)
4.100% 02/15/00 300 300
--------
119,488
--------
TOTAL MUNICIPAL BONDS
(Cost $119,488) 119,488
--------
CASH EQUIVALENTS -- 1.8%
Blackrock Pennsylvania Municipal
Money Market Fund 100 100
Federated Pennsylvania Cash
Trust Fund 2,120 2,120
--------
TOTAL CASH EQUIVALENTS
(Cost $2,220) 2,220
--------
TOTAL INVESTMENTS -- 95.9%
(Cost $121,708) $121,708
========
OTHER ASSETS AND LIABILITIES,
NET -- 4.1% 5,248
--------
See Accompanying Notes
102
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA PENNSYLVANIA TAX EXEMPT MONEY MARKET FUND
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 78,008,624 outstanding shares
of beneficial interest $ 78,009
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
48,920,439 outstanding shares
of beneficial interest 48,921
Accumulated net realized loss on investments (18)
Undistributed net investment income 44
--------
TOTAL NET ASSETS -- 100.0% $126,956
========
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. THE MATURITY DATE SHOWN IS THE LONGER OF THE NEXT RESET
DATE OR THE DATE IN WHICH THE PRINCIPAL AMOUNT CAN BE RECOVERED
THROUGH DEMAND.
(B) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET
ASSETS IS THE RATE IN EFFECTON NOVEMBER 30, 1999
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AN -- ANTICIPATION NOTE
FGIC -- FEDERAL GUARANTY INSURANCE COMPANY
FSA -- FINANCIAL SECURITY ASSURANCE
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
TECP -- TAX EXEMPT COMMERCIAL PAPER
TRAN -- TAX REVENUE ANTICIPATION NOTE
See Accompanying Notes
103
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA PENNSYLVANIA TAX EXEMPT MONEY MARKET FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For Year Ended May 31,
For the Six Months -----------------------------------------------------------------
Ended November 30, 1999 1999 1998 1997
(Unaudited) ------------------- ----------------- ------------------
Class I Class A Class I Class A Class I Class A Class I2 Class A1
------- ------- ------- ------- ------- ------- ------- -------
<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 0.02 0.01 0.03 0.03 0.03 0.03 0.03 0.02
LESS DISTRIBUTIONS
Dividends from net
investment
income (0.02) (0.01) (0.03) (0.03) (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 $ 1.00 $ 1.00
======= ======= ======= ======= ======= ======= ======= =======
TOTAL RETURN 1.49%4 1.42%4 2.92% 2.76% 3.41% 3.29% 3.26% 3.18%3
RATIOS/SUPPLEMENTAL DATA
Net assets, end of
period (in 000's) $78,030 $48,926 $77,214 $53,822 $73,264 $33,375 $60,876 $20,830
Ratio of expenses to
average net
assets 0.32%3 0.47%3 0.34% 0.49% 0.34% 0.46% 0.41% 0.46%3
Ratio of net investment
income to average
net assets 3.02%3 2.87%3 2.82% 2.67% 3.35% 3.23% 3.20% 3.27%3
Ratio of expenses to
average net assets
before fee waivers 0.57%3 0.72%3 0.59% 0.74% 0.58% 0.71% 0.74% 0.71%3
Ratio of net investment
income to average
net assets before
fee waivers 2.77%3 2.62%3 2.57% 2.42% 3.11% 2.98% 2.87% 3.02%3
</TABLE>
For the For the For the
Period Ended Year Ended Period Ended
May 31, 19962 April 30, 19962 April 30, 19952
------------- --------------- ---------------
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%3 0.55% 0.55%3
Ratio of net investment
income to average
net assets 3.24%3 3.29% 3.21%3
Ratio of expenses to
average net assets
before fee waivers 0.97%3 0.96% 1.04%3
Ratio of net investment
income to average
net assets before
fee waivers 2.82%3 2.88% 2.72%3
1 CLASS A COMMENCED OPERATIONS ON SEPTEMBER 11, 1996.
2 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.
3 ANNUALIZED.
4 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
104
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ -------
MUNICIPAL BONDS -- 98.1%
ALASKA -- 1.7%
Valdez, Marine Terminal, Arco
Transportation Project
(RB) (A) (B) Series 1994-B
3.900% 05/01/31 $ 6,000 $ 6,000
Valdez, Marine Terminal, Arco
Transportation Project (TECP)
Series A
3.400% 01/28/00 3,300 3,300
---------
9,300
---------
ARIZONA -- 3.6%
Arizona State, Salt River Project,
Agricultural Improvemnt &
Power District (TECP) Series B
3.600% 01/25/00 5,000 5,000
3.750% 02/14/00 6,000 6,000
3.750% 02/18/00 4,000 4,000
Maricopa County Pollution
Control, Southern California
Edison, (RB) Series E
3.450% 01/31/00 2,000 2,000
Maricopa County Pollution
Control Revenue, State Public
Service, (RB) (A) (B) Series C
3.750% 05/01/29 2,000 2,000
---------
19,000
---------
COLORADO -- 2.2%
Colorado State, Health Facilities
Authority, Catholic Health
Initiatives (RB) (A) (B) Series B
4.000% 12/01/25 7,700 7,700
Colorado State, Health Facilities
Authority, North Colorado
Medical Center (RB) (A) (B)
3.900% 05/15/20 4,300 4,300
---------
12,000
---------
FLORIDA -- 2.7%
Jacksonville, Pollution Control
Revenue, Florida Power &
Light (TECP)
3.500% 01/28/00 5,750 5,750
3.750% 02/11/00 5,810 5,810
3.750% 02/15/00 3,000 3,000
---------
14,560
---------
GEORGIA -- 3.0%
Municipal Electric Authority
Georgia (TECP)
3.650% 03/10/00 2,657 2,657
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
GEORGIA -- CONTINUED
Municipal Electric Authority
Georgia (TECP) Series A
3.450% 01/21/00 $ 5,435 $ 5,435
Savannah, Development
Authority, Downtown Parking
Authority (RB) (A) (B)
3.800% 09/01/05 2,000 2,000
State of Georgia,Trust Receipts
(GO) (A) (B) (C) Series 128
3.970% 02/01/12 6,000 6,000
-------
16,092
-------
ILLINOIS -- 6.5%
ABN Amro Munitops
TX FortBend ISD TX Certificate
Trust, (B) (C) Series 1999-6
4.100% 03/07/07 3,000 3,000
Illinois State, Trust Receipts
(GO) (A) (B) (C) Series 133
3.960% 10/01/07 5,000 5,000
Illinois State, Educational
Facilities Authority,
Northwestern University
(RB) (A) (B)
3.950% 03/01/28 8,736 8,736
Illinois State, Educational
Facility Authority, National
Louis University (RB) Series B
3.900% 06/01/29 3,000 3,000
Illinois State, Fox Valley Park (GO)
3.375% 12/15/99 2,975 2,975
Illinois State, Health Facilities
Authority, Northwestern
Memorial Hospital Project,
VRDN (A) (E)
3.700% 08/15/25 1,200 1,200
Illinois State, Health Facilities
Authority, Advocate Healthcare
Network (RB) (A) (B) Series B
3.950% 08/15/22 4,820 4,820
Illinois State, Health Facility
Authority, Evanston
Northwestern (TECP)
3.250% 05/31/00 2,000 2,000
Illinois State, Hospital Development
Finance Authority, Palos
Community Hospital
(RB) (A) (B) Series 1994-2
3.900% 11/15/11 3,900 3,900
--------
34,631
--------
See Accompanying Notes
105
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
INDIANA -- 7.2%
Indiana State, Health Facility
Finance Authority, Ascension
Health, (TECP) Series B
3.800% 02/09/00 $ 5,000 $ 5,000
Indiana State, Bond Bank
Advance Funding Program
Notes, Series A-2
3.500% 01/19/00 2,550 2,552
Indiana State, Health Facilities Finance
Authority, Capital Access (RB) (A) (B)
PGM 1992
3.900% 12/01/02 1,000 1,000
PGM 1991
3.900% 08/01/06 4,300 4,300
PGM 1997
3.900% 01/01/12 1,450 1,450
PGM 1998
3.900% 04/01/13 4,250 4,250
Indiana State, Hospital Equipment
Finance Authority (RB) (A) (B)
3.900% 12/01/15 10,000 10,000
Purdue University, Indiana
Universities Trustees Student Fee
(RB) (A) (B)
Series H
3.800% 07/01/17 930 930
Series O
3.800% 07/01/19 5,850 5,850
Sullivan, Indiana Hoosier
Energy (TECP)
3.850% 01/24/00 3,400 3,400
-------
38,732
-------
KENTUCKY -- 3.3%
Jefferson County, Louisville Gas &
Electric (TECP) Series 1996-A
3.700% 02/16/00 4,000 4,000
Kentucky State, Economic
Development, Turnpike
Authority (RB)
7.250% 05/15/00 2,000 2,064
Kentucky State, Interlocal School
Transportation Association (TRAN)
4.000% 06/30/00 5,000 5,012
Lexington-Fayette, Urban County
Public Facility (RB)
3.500% 05/01/00 1,550 1,552
Owensboro Davies County,
Regional Water Agency
(RB) Series A
4.400% 09/01/00 4,765 4,782
-------
17,410
-------
Par Value
Maturity (000) (000)
-------- ------ -------
LOUISIANA -- 0.4%
Louisiana State, Parrish of Saint
James, Pollution Control Revenue,
Texaco Project, (RB) Series 1988 A
3.500% 01/19/00 $ 2,000 $ 2,000
-------
MUNICIPAL BONDS -- CONTINUED
MAINE -- 0.4%
Maine State, Health & Higher
Education Facilities Authority
(RB) (A) (B) Series C
3.950% 12/01/25 2,300 2,300
-------
MARYLAND -- 0.7%
Montgomery County (TECP)
3.450% 01/21/00 3,500 3,500
-------
MASSACHUSETTS -- 0.1%
Massachusetts State (GO) (FGIC)
7.250% 03/01/09 725 747
-------
MICHIGAN -- 5.8%
Bellevue Michigan, Community
School (GO)
4.375% 08/31/00 2,000 2,009
Detroit Michigan, Sewer Dispense
(RB) Series A
3.950% 07/01/23 2,000 2,000
Michigan State, Housing
Development Authority, Pine
Ridge (RB) (A) (B)
3.900% 10/01/17 3,900 3,900
Michigan State, Clean Air Michigan
Initatives Series A
3.950% 11/01/13 5,000 5,000
Michigan State, Municipal Bond
Authority (RB)
3.500% 12/01/99 2,000 2,000
Michigan State, Strategic,
Consumers Power Company
(RB) Project J
3.700% 06/01/10 2,500 2,500
Michigan State, Strategic, Detroit
Edison Project (RB)
3.700% 09/01/30 5,800 5,800
Monroe County, Economic
Development Detroit Edison
(RB) (A) (B) Series C
3.700% 10/01/24 4,100 4,100
Mount Morris Michigan, Consolidated
School District State Aid Notes
4.050% 08/30/00 2,500 2,504
University of Michigan, School
Revenues Health System
(RB) (A) (B)
3.650% 12/01/24 1,350 1,350
-------
31,163
-------
See Accompanying Notes
106
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
MINNESOTA -- 8.1%
Becker, Pollution Control Revenue,
Northern States Power (TECP)
3.750% 02/15/00 $ 4,000 $ 4,000
3.700% 02/22/00 4,200 4,200
Hennepin County (GO) (A) (B) Series C
3.700% 12/01/04 2,000 2,000
3.700% 12/01/10 4,000 4,000
Minneapolis (GO) (A) (B)
3.750% 12/01/06 3,235 3,235
3.700% 12/01/07 1,600 1,600
3.700% 12/01/16 4,000 4,000
Minneapolis University
Gateway Project (GO)
3.750% 12/01/27 6,350 6,350
Minneapolis Variable Tax Increment,
(GO) (A) (B) Series A
3.750% 03/01/12 1,830 1,830
Minnesota State, School District (TRAN)
3.450% 08/15/00 3,400 3,400
Minnesota State, School Districts
Tax & Aid Anticipation Borrowing
Certificate, Series A
3.000% 02/03/00 2,000 2,000
Minnesota State, School Districts
Tax & Aid Anticipation Borrowing
Certificate, Series B
2.950% 02/24/00 2,000 2,000
Olmsted County, Human Services
Campus Infrastructure (RB) (A) (B)
3.800% 08/01/05 3,310 3,310
Rochester Minnesota (TECP) Series A
3.750% 03/08/00 1,500 1,500
-------
43,425
-------
MISSISSIPPI -- 2.3%
Forest, Industrial Development,
Sara Lee Project
(RB) (A) (B)
3.950% 10/01/12 8,000 8,000
Jackson County, Water System,
Chevron Project (GO)
3.350% 02/01/00 4,400 4,400
-------
12,400
-------
MISSOURI -- 0.6%
Missouri State, Health &
Educational Facility Authority,
Sisters of Mercy
(RB) (A) (B) Series C
3.850% 06/01/19 2,100 2,100
Par Value
Maturity (000) (000)
-------- ----- -----
MUNICIPAL BONDS -- CONTINUED
MISSOURI -- CONTINUED
Missouri State, Health &
Educational Facility Authority,
Sisters of Mercy
(RB) (A) (B) Series D
3.850% 06/01/19 $ 1,000 $ 1,000
-------
3,100
-------
NEVADA -- 0.3%
Clarke County, University of
Nevada Las Vegas, Development
Project (RB) (A) (B)
3.900% 08/01/19 1,545 1,545
-------
NEW HAMPSHIRE -- 0.4%
New Hampshire State (GO)
5.000% 02/01/00 1,000 1,003
New Hampshire State, Higher
Education & Health Facilities
(RB) (A) (B) Series E
3.950% 12/01/25 1,000 1,000
-------
2,003
-------
NEW JERSEY -- 0.6%
West Deptford Township (BAN)
4.250% 01/18/00 3,000 3,003
-------
NORTH CAROLINA -- 3.9%
North Carolina State, Educational
Facilities, Bowman Gray School
of Medicine Project (RB) (A) (B)
3.850% 09/01/20 10,600 10,600
North Carolina State, Educational
Facilities, Guilford College
(RB) (MBIA) (A) (B)
3.850% 05/01/24 2,000 2,000
Winston-Salem, Municipal Leasing
(RB) (A) (B)
4.050% 07/01/03 8,300 8,300
-------
20,900
-------
OHIO -- 14.6%
Columbus (GO) (B) Series 1
3.700% 12/01/17 10,575 10,575
Columbus Sewer & Water
Improvements (RB) (B)
Series 1995-1
3.700% 06/01/16 2,000 2,000
Columbus Sewer Authority
(RB) (A) (B)
3.800% 06/01/11 2,200 2,200
Cuyahoga County, University
Health Systems (RB) (A) (B)
3.900% 01/15/29 1,425 1,425
See Accompanying Notes
107
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------ -------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Dublin County, City School District
(GO) (MBIA)
4.000% 12/01/99 $ 155 $ 155
Eastern Ohio, Regional Wastewater
Authority (BAN)
4.240% 11/30/00 3,500 3,508
Eastern Ohio, Regional Wastewater
Authority, Water Improvement
(BAN)
4.200% 12/02/99 1,500 1,500
Greater Cleveland, Regional
Transportation Authority
(GO) (FGIC)
4.450% 12/01/99 100 100
Hamilton, Ohio City School District,
(GO) (BAN)
4.200% 12/22/99 3,500 3,501
Lucas County (GO) (FGIC)
4.100% 12/01/99 100 100
5.000% 12/01/99 600 600
Mahoning County, Hospital Facilities
Authority, Forum Health System,
(RB) (MBIA) (B)
3.900% 12/01/28 6,600 6,600
Mason County City School District
(GO) (BAN) Series 1999
3.380% 02/17/00 750 751
Massillon (GO) (BAN)
3.730% 01/14/00 1,800 1,801
Mayfield Village, (GO) (BAN)
4.000% 09/27/00 4,500 4,505
Milford, (GO) (BAN)
3.300% 03/01/00 1,160 1,161
Muskingum County, Various Purpose
(GO) (BAN)
3.750% 06/01/00 2,650 2,654
4.050% 09/20/00 1,980 1,984
Northwest Ohio School District
(GO) (FGIC)
3.900% 12/01/99 100 100
Ohio State, Air Quality Development
Authority, Cincinnati Gas &
Electric (RB) (A) (B)
3.950% 12/01/15 1,050 1,050
Ohio State, Air Quality Development
Authority, Ohio Edison Project TECD
(RB) (A) (B)
2.950% 02/01/00 3,000 3,000
Ohio State, Higher Education Authority,
Lake Erie Project (RB) (A) (B)
4.000% 12/01/16 4,780 4,780
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
OHIO -- CONTINUED
Ohio State, Infrastructure
Development Authority (RB)
4.250% 12/15/99 $ 1,685 $ 1,686
Ohio State University General Receipts
3.850% 12/01/07 1,250 1,250
Ohio State University, General
Receipts (RB) (B) Series 1986-B
4.250% 12/01/06 2,710 2,710
Orrville, Electric System
(RB) (AMBAC)
4.100% 12/01/99 200 200
Pike Delta, York School (BAN)
3.480% 03/02/00 1,850 1,852
Saint Mary's Ohio (BAN)
3.700% 06/13/00 1,570 1,572
Summit County (GO) (BAN)
3.800% 06/01/00 8,000 8,023
Toledo City, Services Special
Assessment Notes (A) (B) Series B
3.900% 06/01/00 4,220 4,220
Twinsburg, Ohio Local School
District (GO)
5.750% 12/01/99 200 200
University of Cincinnati, General
Receipts (BAN)
3.260% 12/21/99 1,375 1,375
Warren County, Waterstone
Boulevard (GO)
4.150% 12/01/99 115 115
Whitehall (GO) (AMBAC)
4.100% 12/01/99 100 100
Wooster, Industrial Development
Authority, Allen Group Project (RB) (B)
4.100% 12/01/10 700 700
-------
78,053
-------
PENNSYLVANIA -- 7.5%
Allegheny County, Higher Educational
University Building Authority, Carnegie
Mellon University (RB) (A) (B)
3.700% 12/01/03 6,000 6,000
Allegheny County, Industrial
Development Authority,
Environmental Improvement,
USX Corp. (RB) (A) (B)
3.850% 12/01/32 5,000 5,000
Allegheny County, Residential
Finance Authority, Mortgage Notes
(RB) Series Gg-1
3.900% 10/01/00 4,755 4,755
Delaware County, Industrial
Development Authority, PECO
Energy (TECP) (FGIC)
3.650% 01/18/00 2,000 2,000
See Accompanying Notes
108
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
PENNSYLVANIA -- CONTINUED
Delaware County, Industrial
Development Authority, PECO
Energy (RB) (A) (B) Series A
3.650% 08/01/16 $ 2,625 $ 2,625
Northampton County, Higher
Education Authority, Lafayette
College (RB) (A) (B) Series B
4.000% 11/01/28 2,000 2,000
Pennsylvania State, Higher Educational
Facilities Authority Refunding,
Carnegie Mellon University Project,
(RB) (A) Series 1995-C
3.700% 11/01/30 1,000 1,000
Pennsylvania State, Higher
Educational Facilities Authority,
University of Pennsylvania, Health
Services Project (RB) (A) (B) Series C
3.850% 01/01/26 1,000 1,000
Pennsylvania State, Industrial
Development Authority
(RB) (AMBAC)
5.000% 01/01/00 2,000 2,003
Pennsylvania State, Turnpike
Commission (RB) Series P
5.100% 12/01/99 1,150 1,150
Quakertown General Authority
(RB) (A) Series A
3.800% 07/01/26 2,745 2,745
Quakertown, Hospital Facilities
Authority (RB) (A) (B)
3.800% 07/01/05 4,000 4,000
Sayre, Healthcare Center Facility
Authority (RB) (AMBAC) (B)
3.900% 12/01/20 2,000 2,000
University of Pennsylvania
(GO) (A) (B)
3.850% 01/01/24 100 100
Washington County, Authority
Equipment Lease (RB) (A) (B)
Series 1985
3.900% 11/01/05 3,730 3,730
-------
40,108
-------
SOUTH CAROLINA -- 2.2%
Oconee County School District (GO)
6.100% 03/01/00 1,505 1,516
Richland County School District (GO)
4.250% 05/01/00 3,400 3,408
South Carolina Public Service (TECP)
3.500% 12/09/99 3,000 3,000
3.700% 01/27/00 4,000 4,000
-------
11,924
-------
Par Value
Maturity (000) (000)
-------- ------- -------
MUNICIPAL BONDS -- CONTINUED
TENNESSE -- 2.8%
Tennessee School Bond Authority
(TECP) Series A
3.550% 01/27/00 $ 5,800 $ 5,800
Tennessee State (GO) (A) (B) Series 108
3.970% 05/01/14 2,000 2,000
Virginia Public School Authority
(RB) (A) (B) (C) Series 109
3.970% 08/01/17 7,000 7,000
-------
14,800
-------
TEXAS -- 5.4%
Fort Worth (TECP)
3.550% 12/08/99 2,700 2,700
Harris County (TAN)
4.000% 02/29/00 3,000 3,004
Houston (TECP)
3.500% 01/26/00 4,000 4,000
Series 1999-A
3.700% 01/27/00 5,000 5,000
Houston, Independant School
District Asbestos Abatement (GO)
4.000% 07/15/00 1,600 1,605
Northside, Independant School
District (GO) Series A
6.375% 08/15/00 700 713
Texas State (TRAN)
4.500% 08/31/00 8,000 8,046
University of Texas, Permament
University Fund (TECP)
3.700% 04/11/00 4,000 4,000
-------
29,068
-------
UTAH -- 3.9%
Emery County, Pollution Control
Revenue, Pacificorp Project (RB) (A) (B)
3.850% 07/01/15 2,700 2,700
Intermountain Power
(TECP) (AMBAC)
3.600% 01/21/00 3,300 3,300
Series 1997-B
3.750% 01/14/00 5,000 5,000
3.500% 01/27/00 2,000 2,000
3.700% 03/08/00 4,000 4,000
Utah University, Auxiliary &
Campus Facilities (RB) (A) (B)
Series 1997-A
3.850% 04/01/27 3,850 3,850
-------
20,850
-------
See Accompanying Notes
109
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TAX EXEMPT MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par/Shares Value
Maturity (000) (000)
-------- ---------- -------
MUNICIPAL BONDS -- CONTINUED
VERMONT -- 0.5%
Vermont State (GO)
6.800% 02/01/00 $ 1,300 $ 1,308
Series A
4.250% 01/15/00 1,215 1,217
--------
2,525
--------
VIRGINIA -- 0.9%
Norfolk Virginia, Industrial
Development Authority, Pooled
Finance Program, Sentara
Health System (TECP)
3.600% 01/26/00 5,000 5,000
--------
WASHINGTON -- 2.1%
Chelan County (RB) (A) (B)
3.800% 06/01/15 4,260 4,260
Washington State, Healthcare
Facility Authority, Fred Hutchinson
Cancer Research Center
(RB) (A) (B) Series 1991-B
4.000% 01/01/18 7,200 7,200
--------
11,460
--------
WISCONSIN -- 4.0%
Carlton, Wisconsin Power and Light
Company Pollution Control Revenue
(RB) (VRDN) Project B
3.700% 09/01/05 2,000 2,000
Oak Creek, Wisconsin Electric Power
Company Project Pollution
Control Revenue (RB) (A) (B)
3.850% 08/01/16 3,100 3,100
Wisconsin State (TECP)
3.650% 03/10/00 4,085 4,085
Series A
3.750% 02/10/00 6,350 6,350
3.750% 02/23/00 6,010 6,010
--------
21,545
--------
WYOMING -- 0.4%
Lincoln County, Pollution Control
Revenue, Pacificorp (TECP)
3.200% 12/09/99 2,000 2,000
--------
TOTAL MUNICIPAL BONDS
(Cost $525,144) 525,144
--------
CASH EQUIVALENTS -- 1.3%
Federated Tax-Free Money
Market Fund 4,100 4,100
Goldman Sachs Financial Square
Tax - Exempt Money Market
Fund 2,539 2,539
--------
Value
(000)
--------
TOTAL CASH EQUIVALENTS
(COST $6,639) $ 6,639
--------
TOTAL INVESTMENTS -- 99.4%
(COST $531,783) $531,783
========
OTHER ASSETS AND LIABILITIES,
NET -- 0.6% 3,299
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based on
349,786,810 outstanding shares
of beneficial interest 349,788
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
185,501,814 outstanding shares
of beneficial interest 185,502
Accumulated net realized loss on investments (25)
Overdistributed net investment income (183)
--------
TOTAL NET ASSETS -- 100.0% $535,082
========
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 BY A MAJOR FINANCIAL INSTITUTION
(B) VARIABLE RATE SECURITY - THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS
IS THE RATE IN EFFECT ON NOVEMBER 30,1999. THE MATURITY DATE SHOWN IS THE
LONGER OF THE NEXT RESET DATE OR THE DATE IN WHICH THE PRINCIPAL AMOUNT CAN
BE RECOVERED THROUGH DEMAND.
(C) PRIVATE PLACEMENT SECURITY
AMBAC -- AMERICAN MUNICIPAL BOND ASSURANCE CORPORATION
AN -- ANTICIPATION NOTE
BAN -- BOND ANTICIPATION NOTE
FGIC -- FEDERAL GUARANTY INSURANCE CORPORATION
GO -- GENERAL OBLIGATION
MBIA -- MUNICIPAL BOND INSURANCE ASSOCIATION
RB -- REVENUE BOND
TECP -- TAX EXEMPT COMMERCIAL PAPER
TRAN -- TAX AND REVENUE ANTICIPATION NOTE
VDRN -- VARIABLE RATE DEMAND NOTE
See Accompanying Notes
110
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA TAX EXEMPT MONEY MARKET FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1999 --------------------------------------------
(Unaudited) 1999 1998
-------------------- -------------------- --------- --------
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 0.01 0.03 0.03 0.03 0.03
LESS DISTRIBUTIONS
Dividends from net
investment income (0.02) (0.01) (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 1.49%2 1.41%2 3.00% 2.85% 3.40% 3.27%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $349,641 $185,441 $434,178 $190,469 $ 418,953 $132,548
Ratio of expenses to
average net assets 0.33%1 0.47%1 0.30% 0.44% 0.30% 0.42%
Ratio of net investment
income to average
net assets 2.98%1 2.83%1 2.92% 2.78% 3.32% 3.20%
Ratio of expenses to
average net assets
before fee waivers 0.53%1 0.67%1 0.50% 0.64% 0.50% 0.62%
Ratio of net investment
income to average net
assets before fee
waivers 2.78%1 2.63%1 2.72% 2.58% 3.12% 3.00%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
------------------------------------------------------------------
1997 1996 1995
------------------ ------------------- ---------------------
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 0.03 0.03 0.03 0.03 0.03
LESS DISTRIBUTIONS
Dividends from net
investment income (0.03) (0.03) (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 3.23% 3.12% 3.40% 3.29% 3.14% 3.04%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $370,679 $71,917 $261,808 $85,928 $172,643 $51,916
Ratio of expenses to
average net assets 0.29% 0.39% 0.30% 0.40% 0.35% 0.46%
Ratio of net investment
income to average
net assets 3.18% 3.08% 3.33% 3.23% 3.15% 3.17%
Ratio of expenses to
average net assets
before fee waivers 0.49% 0.59% 0.51% 0.61% 0.56% 0.67%
Ratio of net investment
income to average net
assets before fee
waivers 2.98% 2.88% 3.12% 3.02% 2.94% 2.96%
</TABLE>
1 ANNUALIZED.
2 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
111
<PAGE>
[GRAPHIC OMITTED] STATEMENT OF NET ASSETS
ARMADA TREASURY MONEY MARKET FUND
NOVEMBER 30, 1999
(UNAUDITED)
Par/Shares Value
Maturity (000) (000)
-------- ---------- --------
U.S. TREASURY OBLIGATIONS -- 90.8%
TREASURY BILLS+ -- 76.1%
U.S. Treasury Bill
4.835% 12/02/99 $ 99,000 $ 98,988
4.680% 12/09/99 35,000 34,964
4.570% 12/16/99 25,000 24,954
4.670% 12/23/99 15,000 14,958
4.680% 12/30/99 15,000 14,943
4.660% 01/06/00 20,000 19,905
4.840% 01/13/00 35,000 34,789
4.985% 01/20/00 40,000 39,715
4.985% 01/27/00 25,000 24,802
4.930% 02/03/00 20,000 19,823
4.910% 02/10/00 25,000 24,752
5.045% 02/17/00 15,000 14,836
5.055% 02/24/00 5,000 4,940
5.115% 03/30/00 5,000 4,915
--------
377,284
--------
TREASURY NOTES -- 14.6%
U.S. Treasury Note
5.375% 01/31/00 27,500 27,507
5.875% 02/15/00 30,000 30,034
5.500% 03/31/00 15,000 15,008
--------
72,549
--------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $449,833) 449,833
--------
CASH EQUIVALENTS -- 6.1%
Federated US Treasury Cash Reserve
Money Market Fund 14,969 14,969
Goldman Sachs Financial Square
Treasury Money Market
Fund 15,258 15,258
--------
TOTAL CASH EQUIVALENTS
(Cost $30,227) 30,227
--------
TOTAL INVESTMENTS -- 96.9%
(Cost $480,060) $480,060
========
OTHER ASSETS AND LIABILITIES,
NET -- 3.1% (15,474)
--------
Value
(000)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 386,276,088 outstanding shares
of beneficial interest $386,276
Portfolio Shares of Class A (unlimited
authorization -- no par value) based on
78,303,586 outstanding shares
of beneficial interest 78,304
Accumulated net realized gain on
investments 1
Undistributed net investment income 5
--------
TOTAL NET ASSETS -- 100.0% $464,586
========
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
112
<PAGE>
[GRAPHIC OMITTED] FINANCIAL HIGHLIGHTS
ARMADA TREASURY MONEY MARKET FUND
FOR A PORTFOLIO SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
For the Six Months For the Year Ended May 31,
Ended November 30, 1999 -------------------------------------------
(Unaudited) 1999 1998
---------------------- ------------------- --------------------
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 0.04 0.04 0.05 0.05
LESS DISTRIBUTIONS
Dividends from net
investment income (0.02) (0.02) (0.04) (0.04) (0.05) (0.05)
-------- -------- -------- -------- -------- ------
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ======
TOTAL RETURN 2.15%3 2.08%3 4.39% 4.23% 4.95% 4.82%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $386,289 $ 78,297 $346,092 $ 83,020 $359,605 $7,222
Ratio of expenses to
average net assets 0.43%2 0.58%2 0.41% 0.55% 0.39% 0.51%
Ratio of net investment
income to average
net assets 4.25%2 4.10%2 4.35% 4.21% 4.84% 4.71%
Ratio of expenses to
average net assets
before fee waivers 0.48%2 0.63%2 0.46% 0.60% 0.44% 0.56%
Ratio of net investment
income to average net
assets before fee
waivers 4.20%2 4.05%2 4.30% 4.16% 4.79% 4.66%
</TABLE>
<TABLE>
<CAPTION>
For the Year Ended May 31,
-------------------------------------------------------------------
1997 1996 1995
------------------- ------------------- --------------------
Class I Class A Class I Class A Class I1 Class A1
-------- ------ -------- ------- -------- -------
<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 0.05 0.02
LESS DISTRIBUTIONS
Dividends from net
investment income (0.05) (0.05) (0.05) (0.05) (0.05) (0.02)
-------- ------ -------- ------- -------- -------
Net asset value, end
of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ====== ======== ======= ======== =======
TOTAL RETURN 4.89% 4.79% 5.07% 4.97% 4.86%2 5.41%2
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in 000's) $276,327 $5,680 $312,255 $ 4,355 $142,877 $ 366
Ratio of expenses to
average net assets 0.37% 0.47% 0.41% 0.52% 0.43%2 0.56%2
Ratio of net investment
income to average
net assets 4.79% 4.68% 4.88% 4.77% 4.78%2 5.35%2
Ratio of expenses to
average net assets
before fee waivers 0.42% 0.52% 0.47% 0.58% 0.49%2 0.63%2
Ratio of net investment
income to average net
assets before fee
waivers 4.74% 4.63% 4.82% 4.71% 4.72%2 5.28%2
</TABLE>
1 CLASS IAND CLASS A COMMENCED OPERATIONS ON JUNE 16, 1994 AND DECEMBER 22,
1994, RESPECTIVELY.
2 ANNUALIZED.
3 TOTAL RETURNS ARE FOR THE PERIOD INDICATED AND HAVE NOT BEEN ANNUALIZED.
See Accompanying Notes
113
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF OPERATIONS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Core Equity Equity Equity International
Equity Fund Growth Fund Income Fund Index Fund Equity Fund
--------------- --------------- -------------- -------------- ---------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C> <C>
Dividends $ 758 $ 5,603 $ 7,344 $ 1,994 $ 1,443
Interest 55 1,028 400 425 379
Less: foreign taxes withheld -- (15) (34) (41) (95)
------- -------- --------- --------- --------
Total investment income 813 6,616 7,710 2,378 1,727
------- -------- --------- --------- --------
EXPENSES:
Investment Advisory fees 591 5,458 2,066 585 1,412
Less: Fees waived by Investment Adviser -- -- -- (296) --
Administration fees 55 509 193 117 86
12b-1 fees 35 298 114 -- 49
Transfer Agent fees 30 82 49 30 31
Custodian fees 16 77 55 34 132
Professional fees 4 57 30 15 6
Printing and shareholder reports 6 45 112 18 3
Registration and filing fees 46 36 48 77 6
Trustees' fees 2 18 5 4 2
Miscellaneous 2 4 1 1 2
Amortization of deferred organizational costs -- -- -- -- --
Shareholder servicing fees --
Class A and B Shares 4 209 16 6 2
------- -------- --------- --------- --------
Total expenses 791 6,793 2,689 591 1,731
------- -------- --------- --------- --------
NET INVESTMENT INCOME/(Loss) 22 (177) 5,021 1,787 (4)
------- -------- --------- --------- --------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on investments sold 5,836 21,447 22,814 (1,182) 11,153
Net realized gain/(loss) on foreign
currency transactions -- -- -- -- (11)
Net realized gain/(loss) on futures -- -- -- 47 558
Net change in unrealized appreciation on
futures -- -- -- 664 1,456
Net change in unrealized appreciation/depreciation
on foreign currency and translation of other
assets and liabilities in foreign currencies -- -- -- -- 783
Net change in unrealized appreciation/
depreciation on investments 6,206 154,244 (67,632) 31,406 59,809
------- -------- --------- --------- --------
Net gain/(loss) on investments 12,042 175,691 (44,818) 30,935 73,748
------- -------- --------- --------- --------
NET INCREASE/(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $12,064 $175,514 $(39,797) $ 32,722 $73,744
------- -------- --------- --------- --------
</TABLE>
See Accompanying Notes
114
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
Small Cap Small Cap Tax Managed Allocation Income Intermediate Advantage
Growth Fund Value Fund Equity Fund Fund Bond Fund Bond Fund GNMA Fund Bond Fund Fund
- -------------- ------------ -------------- ----------- ------------ ------------ ------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 54 $ 4,806 $ 1,312 $ 187 $ -- $ -- $ -- $ -- $ --
400 602 224 1,016 24,810 2,425 3,364 10,055 10,885
-- -- (19) (6) -- -- -- -- --
-------- ------- -------- --------- --------- --------- ---------- ------- --------
454 5,408 1,517 1,197 24,810 2,425 3,364 10,055 10,885
-------- ------- -------- -------- -------- -------- --------- ------ -------
476 1,421 990 294 2,013 179 278 860 912
-- -- -- -- -- (40) -- (234) (331)
33 99 93 27 256 28 36 109 116
20 59 78 12 149 -- 20 65 1
29 59 40 6 35 18 16 43 29
8 28 26 1 73 8 10 31 33
1 7 7 1 23 4 5 12 17
3 10 9 1 23 2 4 11 10
8 30 12 2 113 3 1 5 6
1 3 3 1 9 1 1 4 2
1 3 3 7 1 1 18 5 13
-- 2 -- -- 2 -- 2 -- --
2 15 22 3 5 2 2 7 7
-------- ------- -------- -------- -------- -------- --------- ------ -------
582 1,736 1,283 355 2,702 206 393 918 815
-------- ------- -------- -------- -------- -------- --------- ------ -------
(128) 3,672 234 842 22,108 2,219 2,971 9,137 10,070
-------- ------- -------- -------- -------- -------- --------- ------ -------
5,978 (6,654) 127 96 (12,128) (352) (602) (4,903) (3,345)
-- -- -- 18 -- -- -- -- --
1,133 (1,468) -- 43 -- -- -- -- --
347 383 -- -- -- -- -- -- --
-- -- -- (1) -- -- -- -- --
18,643 3,411 27,938 5,743 (8,054) (310) (1,406) (348) (6,576)
-------- ------- -------- -------- -------- -------- --------- ------ -------
26,101 (4,328) 28,065 5,899 (20,182) (662) (2,008) (5,251) (9,921)
-------- ------- -------- -------- -------- -------- --------- ------ -------
$25,973 $ (656) $ 28,299 $ 6,741 $ 1,926 $ 1,557 $ 963 $3,886 $ 149
======== ======= ======== ======== ======== ======== ========= ====== =======
</TABLE>
See Accompanying Notes
115
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF OPERATIONS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Ohio Pennsylvania
National Tax Tax Exempt Municipal
Exempt Bond Fund Bond Fund Bond Fund
---------------- ---------- ------------
INVESTMENT INCOME:
<S> <C> <C> <C>
Interest $ 2,165 $ 4,891 $ 976
------- ------- ------
EXPENSES:
Investment Advisory fees 279 556 112
Less: Fees waived by Investment Adviser (144) (288) (57)
Administration fees 36 71 14
12b-1 fees 21 28 --
Transfer Agent fees 24 24 14
Custodian fees 10 31 4
Professional fees 2 7 --
Printing and shareholder reports 3 6 2
Registration and filing fees 6 2 3
Trustees' fees 1 2 1
Miscellaneous 4 -- 1
Amortization of deferred organizational costs -- -- --
Shareholder servicing fees-- Class A and B Shares 2 3 --
------- ------- ------
Total expenses 244 442 94
------- ------- ------
NET INVESTMENT INCOME 1,921 4,449 882
------- ------- ------
REALIZED AND UNREALIZED GAIN/(LOSS)
ON INVESTMENTS:
Net realized gain/(loss) on investments sold (437) (1,483) (102)
Net change in unrealized appreciation/depreciation on investments (2,596) (5,264) (1,052)
------- ------- ------
Net gain/(loss) on investments (3,033) (6,747) (1,154)
------- ------- ------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $(1,112) $(2,298) $ (272)
======= ======= ======
</TABLE>
See Accompanying Notes
116
<PAGE>
GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
Pennsylvania
Government Ohio Municipal Tax Exempt Tax Exempt Treasury
Money Market Fund Money Market Fund Money Market Fund Money Market Fund Money Market Fund Money Market Fund
----------------- ----------------- ----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C> <C>
$42,974 $97,549 $2,351 $2,225 $9,795 $9,825
------- ------- ------ ------ ------ ------
2,890 6,422 248 267 1,036 631
(826) (1,835) (142) (167) (592) (105)
578 1,434 50 47 207 147
330 736 27 27 118 84
24 22 28 15 15 22
91 367 12 13 54 42
60 115 1 3 23 17
53 75 6 4 16 15
5 5 36 -- 26 1
10 15 1 1 4 3
26 28 27 1 55 31
-- -- -- -- -- 7
435 1,095 15 38 148 57
------- ------- ------ ------ ------ ------
3,676 8,479 309 249 1,110 952
------- ------- ------ ------ ------ ------
39,298 89,070 2,042 1,976 8,685 8,873
------- ------- ------ ------ ------ ------
-- -- -- (5) -- 1
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
-- -- -- -- -- --
------- ------- ------ ------ ------ ------
$39,298 $89,070 $2,042 $1,971 $8,685 $8,874
======= ======= ====== ====== ====== ======
</TABLE>
See Accompanying Notes
117
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Core Equity Funds Equity Growth Fund
------------------------------- ------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income/(loss) $ 22 $ (167) $ (177) $ (1,632)
Net realized gain/(loss) on investments sold, futures and
foreign currency transactions 5,836 4,677 21,447 (1,100)
Net unrealized appreciation/depreciation on investments,
futures and foreign currency transactions 6,206 25,111 154,244 287,003
-------- -------- ---------- ----------
Net increase/(decrease) in net assets resulting from operations 12,064 29,621 175,514 284,271
-------- -------- ---------- ----------
Distributions to shareholders:
Dividends from net investment income:
Class I (38) (47) (142) --
Class A -- -- -- --
Class B -- -- -- --
Dividends from realized capital gains:
Class I -- (5,032) -- (51,288)
Class A -- (25) -- (4,297)
Class B -- (15) -- (16)
-------- -------- ---------- ----------
Total distributions (38) (5,119) (142) (55,601)
-------- -------- ---------- ----------
Share transactions:
Class I
Proceeds from shares issued 2,462 6,590 60,151 654,266
Proceeds from Common Fund Conversion (note 6) -- -- -- 257,675
Reinvestment of cash distributions 36 4,989 84 44,257
Cost of shares redeemed (1094) (794) (166,326) (256,697)
-------- -------- ---------- ----------
Net Class I share transactions 1,404 10,785 (106,091) 699,501
-------- -------- ---------- ----------
Class A
Proceeds from shares issued 1,285 2,524 12,829 148,499
Reinvestment of cash distributions -- 25 -- 4,243
Cost of shares redeemed (200) (1,360) (15,074) (27,176)
-------- -------- ---------- ----------
Net Class A share transactions 1,085 1,189 (2,245) 125,566
-------- -------- ---------- ----------
Class B
Proceeds from shares issued 448 1,071 773 1,448
Reinvestment of cash distributions -- 15 -- 16
Cost of shares redeemed (362) (36) (93) (108)
-------- -------- ---------- ----------
Net Class B share transactions 86 1,050 680 1,356
-------- -------- ---------- ----------
Increase in net assets from share transactions 2,575 13,024 (107,656) 826,423
-------- -------- ---------- ----------
Total increase/(decrease) in net assets 14,601 37,526 67,716 1,055,093
-------- -------- ---------- ----------
NET ASSETS:
Beginning of period 148,440 110,914 1,419,910 364,817
-------- -------- ---------- ----------
End of period $163,041 $148,440 $1,487,626 $1,419,910
======== ======== ========== ==========
</TABLE>
1 FUND COMMENCED OPERATIONS ON JULY 10, 1998.
See Accompanying Notes
118
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
Equity Income Fund Equity Index Fund International Equity Fund Small Cap Growth Fund
------------------------------ ------------------------------ ------------------------------ ------------------------------
For the Six For the For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 19991 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------ ----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 5,021 $ 8,703 $ 1,787 $ 1,995 $ (4) $ 191 $ (128) $ (180)
22,814 19,671 (1,135) 1,051 11,700 (2,911) 7,111 (10,439)
(67,632) 91,321 32,070 18,732 62,048 5,406 18,990 3,126
-------- -------- ------- -------- -------- -------- ------- --------
(39,797) 119,695 32,722 21,778 73,744 2,686 25,973 (7,493)
-------- -------- ------- -------- -------- -------- ------- --------
(5,755) (6,836) (1,736) (1,309) -- (830) -- (2)
(114) (73) (23) (9) -- (2) -- --
(7) (5) -- -- -- -- -- --
-- (6,668) -- -- -- -- -- (733)
-- (70) -- -- -- -- -- (5)
-- (8) -- -- -- -- -- --
-------- -------- ------- -------- -------- -------- ------- --------
(5,876) (13,660) (1,759) (1,318) -- (832) -- (740)
-------- -------- ------- -------- -------- -------- ------- --------
42,481 98,187 273,955 269,038 45,059 71,205 18,021 48,064
-- 212,347 -- -- -- -- -- --
2,117 7,529 1,533 1,150 -- 42 -- 382
(43,870) (68,381) (79,978) (36,603) (5,071) (9,818) (7,800) (14,596)
-------- -------- ------- -------- -------- -------- ------- --------
728 249,682 195,510 233,585 39,988 61,429 10,221 33,850
-------- -------- ------- -------- -------- -------- ------- --------
4,330 11,058 2,736 4,339 882 2,079 1,669 956
82 114 23 9 -- 2 -- 5
(2,636) (3,429) (982) (647) (358) (1,249) (1,356) (147)
-------- -------- ------- -------- -------- -------- ------- --------
1,776 7,743 1,777 3,701 524 832 313 814
-------- -------- ------- -------- -------- -------- ------- --------
509 1,036 -- -- 70 44 30 807
7 12 -- -- -- -- -- --
(198) (152) -- -- (20) (4) (16) (673)
-------- -------- ------- -------- -------- -------- ------- --------
318 896 -- -- 50 40 14 134
-------- -------- ------- -------- -------- -------- ------- --------
2,822 258,321 197,287 237,286 40,562 62,301 10,548 34,798
-------- -------- ------- -------- -------- -------- ------- --------
(42,851) 364,356 228,250 257,746 114,306 64,155 36,521 26,565
-------- -------- ------- -------- -------- -------- ------- --------
560,433 196,077 257,746 -- 200,374 136,219 81,373 54,808
-------- -------- ------- -------- -------- -------- ------- --------
$517,582 $560,433 $1,485,996 $257,746 $314,680 $200,374 $117,894 $ 81,373
======== ======== ========== ======== ======== ======== ======= ========
</TABLE>
See Accompanying Notes
119
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Small Cap Value Fund Tax Managed Equity Fund
-------------------------------- ------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income $ 3,672 $ 1,768 $ 234 $ 773
Net realized gain/(loss) on investments sold and futures (8,122) (8,366) 127 312
Net unrealized appreciation/depreciation on
investments and futures 3,794 (5,622) 27,938 58,031
-------- -------- -------- --------
Net increase in net assets resulting
from operations (656) (12,220) 28,299 59,116
-------- -------- -------- --------
Distributions to shareholders:
Dividends from net investment income:
Class I -- (867) (333) (776)
Class A -- (28) (3) (3)
Class B -- -- -- --
Dividends from realized capital gains:
Class I -- (23,595) -- (221)
Class A -- (1,101) -- (2)
Class B -- (31) -- (1)
-------- -------- -------- --------
Total distributions -- (25,622) (336) (1,003)
-------- -------- -------- --------
Share transactions:
Class I
Proceeds from shares issued 31,131 73,379 5,113 4,526
Proceeds from Common Fund Conversion (note 6) -- -- -- 46,522
Reinvestment of cash distributions -- 13,812 1 111
Cost of shares redeemed (30,095) (64,606) (19,659) (26,256)
-------- -------- -------- --------
Net Class I share transactions 1,036 22,585 (14,545) 24,903
-------- -------- -------- --------
Class A
Proceeds from shares issued 1,295 11,093 8,083 7,809
Reinvestment of cash distributions -- 1,030 3 3
Cost of shares redeemed (2,217) (9,865) (1,577) (776)
-------- -------- -------- --------
Net Class A share transactions (922) 2,258 6,509 7,036
-------- -------- -------- --------
Class B
Proceeds from shares issued 113 463 2,852 5,341
Reinvestment of cash distributions -- 30 -- 1
Cost of shares redeemed (24) (45) (304) (125)
-------- -------- -------- --------
Net Class B share transactions 89 448 2,548 5,217
-------- -------- -------- --------
Increase in net assets from share transactions 203 25,291 (5,488) 37,156
-------- -------- -------- --------
Total increase in net assets (453) (12,551) 22,475 95,269
-------- -------- -------- --------
NET ASSETS:
Beginning of period 282,439 294,990 254,231 158,962
-------- -------- -------- --------
End of period $281,986 $282,439 $276,706 $254,231
======== ======== ======== ========
</TABLE>
1 FUND COMMENCED OPERATIONS ON JULY 10, 1998.
See Accompanying Notes
120
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
Balanced Allocation Fund Bond Fund Enhanced Income Fund GNMA Fund
- --------------------------- ------------------------------ ------------------------------- ------------------------------
For the For the For the For the For the For the For the For the
Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
mber 30, 1999 May 31, 19991 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
- ------------- ------------ ----------------- ------------ ----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 842 $ 1,267 $ 22,108 $ 35,495 $ 2,219 $ 4,264 $ 2,971 $ 5,291
157 (1,688) (12,128) 6,607 (352) 236 (602) 234
5,742 2,268 (8,054) (15,918) (310) (746) (1,406) (2,090)
- -------- -------- -------- -------- -------- ------- -------- -------
6,741 1,847 1,926 26,184 1,557 3,754 963 3,435
- -------- -------- -------- -------- -------- ------- -------- -------
(841) (948) (21,939) (35,439) (2,197) (4,259) (2,953) (5,162)
(21) (7) (93) (67) (15) (23) (39) (61)
(2) (2) (18) (18) -- -- (1) --
-- -- -- (10,610) -- (405) -- (581)
-- -- -- (25) -- (2) -- (8)
-- -- -- (7) -- -- -- --
- -------- -------- -------- -------- -------- ------- -------- -------
(864) (957) (22,050) (46,166) (2,212) (4,689) (2,993) (5,812)
- -------- -------- -------- -------- -------- ------- -------- -------
8,833 109,461 28,363 334,224 39,968 58,938 16,957 28,666
-- -- -- 444,085 -- -- -- --
841 929 2,800 11,803 1,106 2,437 304 470
(24,949) (26,260) (74,231) (144,163) (31,967) (60,044) (8,744) (13,612)
- -------- -------- -------- -------- -------- ------- -------- -------
(15,275) 84,130 (43,068) 645,949 9,107 1,331 8,517 15,524
- -------- -------- -------- -------- -------- ------- -------- -------
2,904 1,810 2,130 4,207 236 351 358 1,510
21 6 51 56 14 23 30 60
(739) (343) (1,517) (1,526) (267) (376) (627) (585)
- -------- -------- -------- -------- -------- ------- -------- -------
2,186 1,473 664 2,737 (17) (2) (239) 985
- -------- -------- -------- -------- -------- ------- -------- -------
95 390 155 845 140 -- 77 --
2 2 17 24 1 -- 1 --
(29) (7) (210) (113) (1) -- -- --
- -------- -------- -------- -------- -------- ------- -------- -------
68 385 (38) 756 140 -- 78 --
- -------- -------- -------- -------- -------- ------- -------- -------
(13,021) 85,988 (42,442) 649,442 9,230 1,329 8,356 16,509
- -------- -------- -------- -------- -------- ------- -------- -------
(7,144) 86,878 (62,566) 629,460 8,575 394 6,326 14,132
- -------- -------- -------- -------- -------- ------- -------- -------
86,878 -- 762,242 132,782 72,841 72,447 98,305 84,173
- -------- -------- -------- -------- -------- ------- -------- -------
$ 79,734 $ 86,878 $699,676 $762,242 $781,416 $72,841 $104,631 $98,305
======== ======== ======== ======== ======== ======= ======== =======
</TABLE>
See Accompanying Notes
121
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Intermediate Bond Fund Total Return Advantage Fund
--------------------------------- ---------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income $ 9,137 $ 13,769 $ 10,070 $ 18,106
Net realized gain/(loss) on investments sold (4,903) 2,105 (3,345) 3,724
Net unrealized appreciation/depreciation
on investments (348) (7,084) (6,576) (11,244)
-------- -------- -------- --------
Net increase in net assets
resulting from operations 3,886 8,790 149 10,586
-------- -------- -------- --------
Distributions to shareholders:
Dividends from net investment income:
Class I (9,022) (13,608) (9,943) (17,916)
Class A (152) (205) (169) (197)
Class B (15) (13) -- --
Dividends from realized capital gains:
Class I -- (1,679) -- (1,326)
Class A -- (20) -- (17)
Class B -- (2) -- --
-------- -------- -------- --------
Total distributions (9,189) (15,527) (10,112) (19,456)
-------- -------- -------- --------
Share Transactions:
Class I
Proceeds from shares issued 43,852 168,983 29,872 74,950
Proceeds from Common Fund Conversion
(note 6) -- 71,602 -- --
Reinvestment of cash distributions 2,658 5,353 6,010 12,191
Cost of shares redeemed (54,753) (92,671) (42,298) (46,083)
-------- -------- -------- --------
Net Class I share transactions (8,243) 153,267 (6,416) 41,058
-------- -------- -------- --------
Class A
Proceeds from shares issued 1,486 3,889 1,857 4,953
Reinvestment of cash distributions 111 190 159 197
Cost of shares redeemed (1,749) (2,127) (265) (950)
-------- -------- -------- --------
Net Class A share transactions (152) 1,952 1,751 4,200
-------- -------- -------- --------
Class B
Proceeds from shares issued 143 742 1 --
Reinvestment of cash distributions 13 12 -- --
Cost of shares redeemed (233) (30) -- --
-------- -------- -------- --------
Net Class B share transactions (77) 724 1 --
-------- -------- -------- --------
Increase in net assets from share transactions (8,472) 155,943 (4,664) 45,258
-------- -------- -------- --------
Total increase in net assets (13,775) 149,206 (14,627) 36,388
-------- -------- -------- --------
NET ASSETS:
Beginning of period 319,206 170,000 333,103 296,715
-------- -------- -------- --------
End of period $305,431 $319,206 $318,476 $333,103
======== ======== ======== ========
</TABLE>
See Accompanying Notes
122
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
National Tax Exempt Bond Fund Ohio Tax Exempt Bond Fund Pennsylvania Municipal Bond Fund
- -------------------------------- --------------------------------- --------------------------------
For the For the For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
- ----------------- ------------ ----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C>
$ 1,921 $ 4,217 $ 4,449 $ 9,813 $ 4,882 $ 1,891
(437) 412 (1,483) 180 (102) 116
(2,596) (581) (5,264) (2,191) (1,052) (433)
--------- -------- -------- -------- -------- -------
(1,112) 4,048 (2,298) 7,802 (272) 1,574
--------- -------- -------- -------- -------- -------
(2,062) (4,193) (4,466) (9,541) (949) (1,807)
(92) (67) (127) (212) (4) (8)
(5) (2) -- -- -- --
-- (257) -- (136) -- (41)
-- (1) -- (3) -- --
-- -- -- -- -- --
--------- -------- -------- -------- -------- -------
(2,159) (4,520) (4,593) (9,892) (953) (1,856)
--------- -------- -------- -------- -------- -------
5,303 20,912 12,254 81,139 10,046 6,378
-- 22,085 -- -- -- --
21 67 128 278 14 38
(11,091) (22,312) (19,190) (39,407) (2,420) (4,718)
--------- -------- -------- -------- -------- -------
(5,767) 20,752 (6,808) 42,010 7,640 1,698
--------- -------- -------- -------- -------- -------
925 8,788 2,325 1,246 4 114
82 63 69 120 -- 1
(797) (4,551) (701) (545) (88) (20)
--------- -------- -------- -------- -------- -------
210 4,300 1,693 821 (84) 95
--------- -------- -------- -------- -------- -------
35 277 -- -- -- --
5 2 -- -- -- --
-- -- -- -- -- --
--------- -------- -------- -------- -------- -------
40 279 -- -- -- --
--------- -------- -------- -------- -------- -------
(5,517) 25,331 (5,115) 42,831 7,556 1,793
--------- -------- -------- -------- -------- -------
(8,788) 24,859 (12,006) 40,741 6,331 1,511
--------- -------- -------- -------- -------- -------
105,118 80,259 210,173 169,432 40,389 38,878
--------- -------- -------- -------- -------- -------
$ 96,330 $105,118 $198,167 $210,173 $ 46,720 $40,389
========= ======== ======== ======== ======== =======
</TABLE>
See Accompanying Notes
123
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
FOR THE SIX MONTHS ENDED NOVEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Government Money Market Fund Money Market Fund
------------------------------- ------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income $ 39,298 $ 69,425 $ 89,070 $ 152,635
Net realized gain/(loss) on investments sold -- -- -- (1)
Net unrealized appreciation/depreciation on investments, -- -- -- --
---------- ---------- ---------- ----------
Net increase in net assets resulting from operations 39,298 69,425 88,070 152,634
---------- ---------- ---------- ----------
Distributions to shareholders:
Dividends from net investment income:
Class I (25,780) (48,773) (54,173) (101,961)
Class A (13,533) (20,599) (34,777) (51,163)
Class B -- -- (9) (3)
Dividends from realized capital gains:
Class I -- -- -- --
Class A -- -- -- --
Class B -- -- -- --
---------- ---------- ---------- ----------
Total distributions (39,313) (69,372) (88,959) (153,127)
---------- ---------- ---------- ----------
Share transactions:
Class I
Proceeds from shares issued 2,365,346 3,760,181 2,925,982 6,186,234
Reinvestment of cash distributions 631 873 538 405
Cost of shares redeemed (2,381,087) (3,802,485) (2,840,334) (5,964,073)
---------- ---------- ---------- ----------
Net Class I share transactions (15,110) (41,431) 86,186 222,566
---------- ---------- ---------- ----------
Class A
Proceeds from shares issued 556,936 1,375,632 2,430,586 3,828,467
Reinvestment of cash distributions 2,108 3,639 20,184 32,692
Cost of shares redeemed (541,407) (1,062,178) (2,213,338) (3,197,331)
---------- ---------- ---------- ----------
Net Class A share transactions 17,637 317,093 237,432 663,828
---------- ---------- ---------- ----------
Class B
Proceeds from shares issued -- -- 1,605 162
Reinvestment of cash distributions -- -- 6 2
Cost of shares redeemed -- -- (1,407) (142)
---------- ---------- ---------- ----------
Net Class B share transactions -- -- 204 22
---------- ---------- ---------- ----------
Increase in net assets from share transactions 2,527 275,662 323,933 886,416
---------- ---------- ---------- ----------
Total increase in net assets 2,512 275,715 323,933 885,925
---------- ---------- ---------- ----------
NET ASSETS:
Beginning of period 1,660,074 1,384,359 3,494,510 2,608,587
---------- ---------- ---------- ----------
End of period $1,662,586 $1,660,074 $3,818,443 $3,494,510
========== ========== ========== ==========
</TABLE>
See Accompanying Notes
124
<PAGE>
[GRAPHIC OMITTED] FINANCIAL STATEMENTS
ARMADA FUNDS
<TABLE>
<CAPTION>
Ohio Municipal Pennsylvania Tax Exempt Tax-Exempt
Money Market Fund Money Market Fund Money Market Fund Treasury Money Market Fund
----------------------------- ------------------------------ ------------------------------ ------------------------------
For the Six For the For the Six For the For the Six For the For the Six For the
Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended Months Ended Year Ended
November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999 November 30, 1999 May 31, 1999
----------------- ------------ ----------------- ------------ ----------------- ------------ ----------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,042 $ 2,062 $ 1,976 $ 3,760 $ 8,685 $ 17,732 $ 8,873 $ 16,787
-- -- (5) -- -- (36) 1 85
-- -- -- --
-------- -------- -------- -------- -------- -------- -------- ----------
2,042 2,062 1,971 3,760 8,685 17,696 8,874 16,872
-------- -------- -------- -------- -------- -------- -------- ----------
(1,793) (1,958) (1,235) (2,667) (5,759) (12,418) (7,367) (14,683)
(287) (124) (714) (1,112) (2,843) (5,503) (1,574) (2,138)
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- ----------
(2,080) (2,082) (1,949) (3,779) (8,602) (17,921) (8,941) (16,821)
-------- -------- -------- -------- -------- -------- -------- ----------
133,789 273,577 67,251 176,111 381,535 760,407 684,943 1,602,785
77 27 -- -- 140 98 -- 26
(103,753) (174,242) (66,450) (172,152) (466,343) (745,079) (644,691) (1,616,371)
-------- -------- -------- -------- -------- -------- -------- ----------
30,113 99,362 801 3,959 (84,668) 15,426 40,252 (13,560)
-------- -------- -------- -------- -------- -------- -------- ----------
49,629 30,799 91,335 161,332 252,307 654,175 440,575 647,257
244 98 382 490 2,417 5,196 201 447
(30,919) (19,878) (96,620) (141,365) (259,704) (601,426) (445,487) (571,910)
-------- -------- -------- -------- -------- -------- -------- ----------
18,954 11,019 (4,903) 20,457 (4,980) 57,945 (4,711) 75,794
-------- -------- -------- -------- -------- -------- -------- ----------
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- ----------
-- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- ----------
49,067 110,381 (4,102) 24,416 (89,648) 73,371 35,541 62,234
-------- -------- -------- -------- -------- -------- -------- ----------
49,029 110,361 (4,080) 24,397 (89,565) 73,146 35,474 62,285
-------- -------- -------- -------- -------- -------- -------- ----------
110,361 -- 131,036 106,639 624,647 551,501 429,112 366,827
-------- -------- -------- -------- -------- -------- -------- ----------
$159,390 $110,361 $126,956 $131,036 $535,082 $624,647 $464,586 $ 429,112
======== ======== ======== ======== ======== ======== ======== ==========
</TABLE>
See Accompanying Notes
125
<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 Class I and Class A shares. Effective
January 1, 1998, all funds except Government Money Market, Ohio Municipal Money
Market, Pennsylvania Tax Exempt Money Market, Tax Exempt MoneyMarket, and
Treasury Money Market were authorized to offer a third class of shares
designated as Class B shares. A fourth class of shares known as Class C Shares
has been registered but not yet effective for all funds except Government Money
Market, Ohio Municipal Money Market, Pennsylvania Tax Exempt Money Market, Tax
Exempt Money Market and Treasury MoneyMarket. 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 and
Class C 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 (each
referred to as a "Fund" or collectively as the "Funds"):
EQUITY SERIES
Core Equity Fund, Equity Growth Fund, Equity Income Fund, Equity Index Fund,
International Equity Fund, Small Cap Growth Fund, Small Cap Value Fund, and
Tax Managed Equity Fund;
ALLOCATION SERIES
Balanced Allocation Fund;
INCOME SERIES
Bond Fund, Enhanced Income Fund, GNMA Fund, Intermediate Bond Fund, Real
Return Advantage Fund, and Total Return Advantage Fund;
TAX EXEMPT SERIES
National Tax Exempt Bond Fund, Ohio Tax Exempt Bond Fund, and Pennsylvania
Municipal Bond Fund;
MONEY MARKET SERIES
Government Money Market Fund, Money Market Fund, Ohio Municipal Money Market
Fund, Pennsylvania Tax Exempt Money Market Fund, Tax Exempt Money Market Fund,
and Treasury Money Market Fund.
As of the date of this report, the Real Return Advantage Fund had not
commenced operations.
2. SIGNIFICANT ACCOUNTING POLICIES
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 following is a summary of significant accounting policies followed by the
Funds.
SECURITY VALUATION: Investments of the money market funds are valued at
either amortized cost, as permitted in accordance with Rule 2a-7 under the 1940
Act, or at original cost, which combined with accrued interest approximates
market value. Under the amortized cost method, discount or premium is amortized
on a constant basis to the maturity of the security.
Portfolio securities, the principal market for which is a securities
exchange, will be valued at the closing sales price on that exchange on the day
of computation. With respect to the Fixed Income Funds, Tax-Free Income Fund and
the fixed income securities of the Balanced Allocation Fund, if there have been
no sales during such day, portfolio securities will be valued at the mean
between the most recent quoted bid and asked prices. Portfolio securities, the
principal market for which is not a securities exchange, will be valued at the
mean between the most recent quoted bid and asked prices in such principal
market. With respect to the Growth Funds, Equity Income Fund, and the equity
securities of the Balanced Allocation Fund, if there have been no sales during
such day, portfolio securities will be valued at the latest bid quotation. In
either case, if no such price is available, then such securities will be valued
in good faith at their respective fair market values using methods determined by
or under the supervision of the Board of Trustees. Portfolio securities with a
remaining maturity of 60 days or less will be valued either at amortized cost
or original cost plus accrued interest, which approximates current value.
All other assets and securities including securities for which market
quotations are not readily available will be valued at their fair market value
as determined in good faith under the general supervision of the Board of
Trustees.
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 the ex-dividend date. Expenses common to all
of the Funds in the Trust are allocated among the Funds on the basis of average
net assets. Original issue discounts and mar-
126
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
ket premiums are amortized to interest income over the lives of the respective
securities.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS: Dividends from the net
investment income of the Core Equity, Equity Growth, Equity Income, Equity
Index, Tax Managed Equity 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 the Core Equity, Equity Growth, Equity Income, Equity Index,
International Equity, Small Cap Growth, Small Cap Value, Tax Managed Equity, and
Balanced Allocation Funds, net investment 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 Bond, Enhanced Income,
GNMA, Intermediate Bond, Total Return Advantage, National Tax Exempt Bond, Ohio
Tax Exempt Bond, Pennsylvania Municipal Bond, Government Money Market, Money
Market, Ohio Municipal Money Market, Pennsylvania Tax Exempt Money Market, Tax
Exempt Money Market, and Treasury Money Market Funds are declared daily and paid
no later than six business days after the end of the month. Net investment
income of the Bond, Enhanced Income, GNMA, Intermediate Bond, Total Return
Advantage, Government Money Market, Money 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 National Tax Exempt Bond,
Ohio Tax Exempt Bond, Pennsylvania Municipal Bond, 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 or
continue 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.
The amounts of distributions from net investment income and net realized
capital gains are determined in accordance with Federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principles. These book/tax differences are either temporary or
permanent in nature. These differences are primarily due to wash sales, foreign
currency gains and losses and the "mark to market" of certain Passive Foreign
Investment Companies (PFICs) for tax purposes. The character of distributions
made during the year from net investment income or net realized gains, and the
timing of distributions where the fiscal year in which the amounts are
distributed may differ from the year that the income or realized gains (losses)
were recorded by the Fund. To the extent these differences are permanent,
adjustments are made to the appropriate equity accounts in the period that the
differences arise. On the Statement of Net Assets the following adjustments were
made:
Accumulated Undistributed
Net Realized Net Investment Paid-In-
Gain (Loss) Income Capital
Fund (000) (000) (000)
- ---- ------------- -------------- ----------
Core Equity $ (22) $ 189 $ (167)
Equity Growth (163) 1,693 (1,530)
Small Cap Growth -- 182 (182)
Bond 10 (1) (9)
Intermediate Bond (80) 84 (4)
Money Market 3 -- (3)
Tax Exempt Money
Market (11) (77) 88
Treasury Money
Market (107) 107 --
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 Postion 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
mar-
127
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
ket 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, 1999, forward foreign
currency contracts outstanding were as follows:
Contracts to Unrealized
(Deliver)/ In Exchange Appreciation
Receive for Settlement (Depreciation)
(000) (000) Date (000)
----------- ----------- ----------- -------------
INTERNATIONAL EQUITY FUND
Foreign Currency Sales:
EU (40) $ (41) 12/01/99 $ --
JP (2,000,000) (17,495) 04/03/00 (2,521)
Foreign Currency Purchases:
JP 102,102 967 12/07/99 35
JP 975,000 8,483 04/03/00 1,275
JP 1,025,000 9,075 04/03/00 1,183
BALANCED ALLOCATION FUND:
Foreign Currency Sales:
JP (3,584) (34) 12/07/99 1
Foreign Currency Purchases:
SG 35 21 12/07/99 --
EU--Euro SG--Singapore Dollar JP--Japanese Yen
FUTURES CONTRACTS: Certain of the Funds may engage in futures contracts for
the purpose of hedging against the value of the portfolio securities held and in
the value of the securities a Fund intends to purchase, in order to maintain
liquidity. Upon entering into a futures contract, a Fund is required to deposit
with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the "initial margin".
Subsequent payments ("variation margin") are made or received by a Fund each
day, depending on the daily fluctuation of the value of the contract. The daily
changes in the contract are recorded as unrealized gain or loss. The Fund
recognizes a realized gain or loss when the contract is closed. The net
unrealized appreciation/(depreciation), if any, is shown in the financial
statements.
There are several risks in connection with the use of futures contracts as a
hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk that
the Fund may not be able to enter into a closing transaction because of an
illiquid secondary market.
Financial futures contracts open at November 30, 1999 were as follows:
Number Notional Unrealized
of Cost Amount Expiration Gain/(Loss)
Fund Contracts (000) Date (000)
- ---- ----------- ----------- ----------- -----------
Equity Index -
S&P 500
Futures 34 $11,164 Dec-99 $664
International Equity-
CAC 40 Index 30 1,410 Dec-99 214
DAX Index 10 1,343 Dec-99 140
FT-SE 100 Index 96 9,163 Dec-99 965
Hang Seng
Index 27 2,621 Dec-99 56
NIKKEI
225 Index 9 1,553 Dec-99 81
Small Cap Growth -
Russell 2000
Futures 21 4,403 Dec-99 347
Small Cap Value -
Russell 2000
Futures 69 15,224 Dec-99 383
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.
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 any remaining loss may be subject to legal
proceedings.
128
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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 (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. At
November 30, 1999, advisory fees accrued and unpaid amounted to:
Annual
Rate (000)
---------- ----------
Core Equity Fund 0.75% $ 98
Equity Growth Fund 0.75% 887
Equity Income Fund 0.75% 315
Equity Index Fund 0.35% 137
International Equity Fund 1.15% 279
Small Cap Growth Fund 1.00% 88
Small Cap Value Fund 1.00% 226
Tax Managed Equity Fund 0.75% 165
Balanced Allocation Fund 0.75% 47
Bond Fund 0.55% 309
Enhanced Income Fund 0.45% 30
GNMA Fund 0.55% 46
Intermediate Bond Fund 0.55% 134
Total Return Advantage Fund 0.55% 141
National Tax Exempt Bond Fund 0.55% 43
Ohio Tax Exempt Bond Fund 0.55% 87
Pennsylvania Municipal Bond Fund 0.55% 20
Government Money Market Fund 0.35% 470
Money Market Fund 0.35% 1,064
Ohio Municipal Money Market Fund 0.35% 44
Pennsylvania Tax Exempt Money
Market Fund 0.40% 42
Tax Exempt Money Market Fund 0.35% 156
Treasury Money Market Fund 0.30% 100
National Asset Management Corporation 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. No fees were paid to the
sub-adviser directly from the Trust.
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.
Annual Annual
Rate Rate
Class A Class B
---------- ----------
Core Equity Fund 0.25% 0.25%
Equity Growth Fund 0.25% 0.25%
Equity Income Fund 0.25% 0.25%
Equity Index Fund 0.25% 0.25%
International Equity Fund 0.25% 0.25%
Small Cap Growth Fund 0.25% 0.25%
Small Cap Value Fund 0.25% 0.25%
Tax Managed Equity Fund 0.25% 0.25%
Balanced Allocation Fund 0.25% 0.25%
Bond Fund 0.25% 0.25%
Enhanced Income Fund 0.10% 0.25%
GNMA Fund 0.25% 0.25%
Intermediate Bond Fund 0.25% 0.25%
Total Return Advantage Fund 0.25% 0.25%
National Tax Exempt Bond Fund 0.10% 0.10%
Ohio Tax Exempt Bond Fund 0.10% 0.10%
Pennsylvania Municipal Bond Fund 0.10% 0.10%
Government Money Market Fund 0.15% N/A
Money Market Fund 0.15% 0.15%
Ohio Municipal Money Market Fund 0.15% N/A
Pennsylvania Tax Exempt Money
Market Fund 0.15% N/A
Tax Exempt Money Market Fund 0.15% N/A
Treasury Money Market Fund 0.15% N/A
National City Bank serves as the Fund's Custodian.
The Trust and SEI Investments Distribution Co., a wholly-owned subsidiary of
SEI Investments Company ("SEI" or the "Distributor") are parties to a
distribution agreement dated May 1, 1998. The Distributor receives no fees for
its distribution services under this agreement. The Trust reimburses the
Distributor for direct and indirect costs and expenses incurred in connection
with advertising, marketing and other distribution services. The Class I and
Class A shares are subject to a fee not to exceed .10% per annum of the average
net assets of its Class I and Class A shares. Currently the funds pay a fee
equal to .04% per annum, except Equity Index, Enhanced Income, Total Return
Advantage and Pennsylvania Municipal Bond Fund, which are currently waiving
their full fee. The Class B shares of the Trust pays the Distributor up to .75%
per annum of the average net assets for the same services provided to the Class
I and Class A shares.
129
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
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 capacity.
The Trustees and Chairman expenses are allocated on a prorata basis across
the Armada, Friends, Parkstone Group of Funds and Parkstone Advantage Funds.
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 Adviser, 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, 1999, include legal fees of
$225,894 paid to Drinker, Biddle & Reath LLP. A partner of that firm is
Secretary of the Trust.
The Trust and SEI Investments Mutual Funds 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.
4. INVESTMENTS
During the period ended November 30, 1999, purchases and sales of securities,
other than short-term investments or U.S. government obligations, aggregated:
Purchases (000) Sales (000)
-------------- -------------
Core Equity Fund $ 30,803 $ 28,402
Equity Growth Fund 193,742 294,562
Equity Income Fund 103,186 89,076
Equity Index Fund 218,743 22,640
International Equity Fund 175,667 154,555
Small Cap Growth Fund 79,503 70,437
Small Cap Value Fund 149,293 163,935
Tax Managed Equity Fund 6,920 11,221
Balanced Allocation Fund 35,171 45,215
Bond Fund 269,047 253,074
Enhanced Income Fund 19,069 16,267
GNMA Fund 14,885 16,320
Intermediate Bond Fund 135,004 125,709
Total Return Advantage Fund 59,517 65,318
National Tax Exempt
Bond Fund 11,196 17,310
Ohio Tax Exempt Bond Fund 27,478 32,664
Pennsylvania Municipal
Bond Fund 9,738 3,258
Purchases and sales of long-term U.S. government obligations were:
Purchases (000) Sales (000)
-------------- -------------
Balanced Allocation Fund $ 13,580 $ 17,014
Bond Fund 163,836 218,471
Enhanced Income Fund 27,225 19,953
GNMA Fund 35,453 24,483
Intermediate Bond Fund 105,447 118,854
Total Return Advantage Fund 169,540 160,588
As of November 30, 1999, the following funds have capital loss carryforwards:
Amount Expiration
Fund (000) Date
---------- -------------
Equity Growth $1,032 2007
International Equity 6,578 2006-2007
Small Cap Growth 4,342 2007
Small Cap Value 3,560 2007
Balanced Allocation 821 2007
Government Money Market 2 2002-2006
Money Market 11 2001-2007
Pennsylvania Tax Exempt
Money Market 13 2003-2007
Tax Exempt Money Market 26 2006-2007
The Small Cap Growth, Small Cap Value, Balanced Allocation, Bond, Enhanced
Income and GNMA Funds incurred losses in the amount of $5,454,834, $4,883,790,
$754,303, $1,545,272, $3,893 and $90,861 from November 1, 1998 to May 31, 1999.
As permitted by tax regulations, the funds intend to elect to defer and treat
these losses as arising in the fiscal year ending May 31, 2000.
At November 30, 1999, 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, 1999 is as follows:
Aggregate Aggregate
Gross Gross
Appreciation Depreciation Net
(000) (000) (000)
-------------- ------------ ------------
Core Equity Fund $ 43,008 $ (3,133) $ 39,875
Equity Growth Fund 518,837 (22,307) 496,530
Equity Income Fund 103,167 (32,669) 70,498
Equity Index Fund 68,120 (17,982) 50,138
International Equity Fund 83,582 (4,162) 79,420
Small Cap Growth Fund 28,511 (2,577) 25,934
Small Cap Value Fund 32,451 (15,061) 17,390
Tax Managed Equity Fund 214,375 (105) 214,270
Balanced Allocation Fund 10,846 (2,836) 8,010
Bond Fund 582 (22,972) (22,390)
Enhanced Income Fund 107 (883) (776)
GNMA Fund 224 (2,396) (2,172)
Intermediate Bond Fund 230 (6,305) (6,075)
Total Return Advantage
Fund 484 (12,591) (12,107)
National Tax Exempt
Bond Fund 658 (1,525) (867)
Ohio Tax Exempt
Bond Fund 1,992 (3,197) (1,205)
Pennsylvania Municipal
Bond Fund 643 (442) 201
130
<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>
(000)
------------------------------------------------------------------------
Class I Class A Class B
---------------------- -------------------- -------------------
Period Year Period Year Period Year
Ended Ended Ended Ended Ended Ended
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
-------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
CORE EQUITY FUND
Shares sold 170 521 90 190 31 83
Shares reinvested 3 396 -- 2 -- 1
Shares repurchased (76) (64) (14) (102) (26) (3)
-------- ------- ------- ------ ------- ------
Net increase 97 853 76 90 5 81
======== ======= ======= ====== ======= ======
EQUITY GROWTH FUND
Shares sold 2,304 55,653 496 6,417 30 59
Shares sold from common fund -- 11,713 -- -- -- --
Shares reinvested 3 1,893 -- 182 --
Shares repurchased (6,426) (34,479) (583) (809) (3) (3)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (4,119) 34,780 (87) 5,790 27 56
======== ======= ======= ====== ======= ======
EQUITY INCOME FUND
Shares sold 2,326 8,741 239 634 28 60
Shares sold from common fund -- 12,893 -- -- -- --
Shares reinvested 14 443 5 7 -- 1
Shares repurchased (2,437) (3,977) (16) (174) (10) (8)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (97) 18,100 228 467 18 53
======== ======= ======= ====== ======= ======
EQUITY INDEX FUND*
Shares sold 24,113 25,795 237 400 -- --
Shares reinvested 133 113 2 1 -- --
Shares repurchased (6,822) (3,478) (85) (56) -- --
-------- ------- ------- ------ ------- ------
Net increase/(decrease) 17,424 22,430 (154) 345 -- --
======== ======= ======= ====== ======= ======
INTERNATIONAL EQUITY FUND
Shares sold 3,621 6,630 70 189 6 4
Shares reinvested -- 4 -- -- -- --
Shares repurchased (405) (901) (28) (110) (2) --
-------- ------- ------- ------ ------- ------
Net increase 3,216 5,733 42 79 4 4
======== ======= ======= ====== ======= ======
SMALL CAP GROWTH FUND
Shares sold 1,531 4,616 151 93 3 75
Shares reinvested -- 36 -- 1 -- --
Shares repurchased (680) (1,409) (119) (14) (1) (61)
-------- ------- ------- ------ ------- ------
Net increase 851 3,243 32 80 2 14
======== ======= ======= ====== ======= ======
SMALL CAP VALUE FUND
Shares sold 2,279 5,565 97 853 8 36
Shares reinvested -- 1,099 -- 84 -- 3
Shares repurchased (2,198) (4,939) (167) (757) (2) (4)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) 81 1,725 (70) 180 6 35
======== ======= ======= ====== ======= ======
</TABLE>
- ---------------------
*FUND COMMENCED OPERATIONS ON JULY 10, 1998.
131
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
(000)
------------------------------------------------------------------------
Class I Class A Class B
------------------------------------------------------------------------
Period Period Period Period Period Period
Ended Ended Ended Ended Ended Ended
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
-------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
TAX MANAGED EQUITY FUND
Shares sold 402 1,245 627 663 225 444
Shares sold from common fund -- 4,949 -- -- -- --
Shares reinvested -- 10 -- -- -- --
Shares repurchased (1,550) (2,301) (121) (60) (24) (9)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (1,148) 3,903 506 603 201 435
======== ======= ======= ====== ======= ======
BALANCED ALLOCATION FUND*
Shares sold 850 10,709 276 173 9 38
Shares reinvested 81 90 2 1 -- --
Shares repurchased (2,388) (2,552) (70) (32) (3) (1)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (1,457) 8,247 208 142 6 37
======== ======= ======= ====== ======= ======
BOND FUND
Shares sold 2,900 54,213 218 407 16 81
Shares sold from common fund -- 42,948 -- -- -- --
Shares reinvested 287 1,144 5 5 2 3
Shares repurchased (7,607) (35,024) (155) (147) (22) (11)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (4,420) 63,281 68 265 (4) 73
======== ======= ======= ====== ======= ======
ENHANCED INCOME FUND
Shares sold 4,035 5,834 24 35 14 --
Shares reinvested 112 241 1 2 -- --
Shares repurchased (3,229) (5,959) (27) (37) -- --
-------- ------- ------- ------ ------- ------
Net increase/(decrease) 918 116 (2) -- 14 --
======== ======= ======= ====== ======= ======
GNMA FUND
Shares sold 1,709 2,788 36 146 8 --
Shares reinvested 31 46 3 6 -- --
Shares repurchased (880) (1,323) (63) (57) -- --
-------- ------- ------- ------ ------- ------
Net increase/(decrease) 860 1,511 (24) 95 8 --
======== ======= ======= ====== ======= ======
INTERMEDIATE BOND FUND
Shares sold 4,266 15,932 144 363 14 69
Shares sold from common fund -- 6,642 -- -- -- --
Shares reinvested 259 503 11 18 1 1
Shares repurchased (5,329) (8,677) (170) (197) (22) (2)
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (804) 14,400 (15) 184 (7) 68
======== ======= ======= ====== ======= ======
TOTAL RETURN ADVANTAGE FUND
Shares sold 3,053 7,279 189 478 -- --
Shares reinvested 615 1,179 16 19 -- --
Shares repurchased (4,321) (4,461) (27) (90) -- --
-------- ------- ------- ------ ------- ------
Net increase/(decrease) (653) 3,997 178 407 -- --
======== ======= ======= ====== ======= ======
</TABLE>
- ---------------------
*FUND COMMENCED OPERATIONS ON JULY 10, 1998.
132
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
(000)
------------------------------------------------------------------------
Class I Class A Class B
------------------------------------------------------------------------
Period Period Period Period Period Period
Ended Ended Ended Ended Ended Ended
11/30/99 5/31/99 11/30/99 5/31/99 11/30/99 5/31/99
-------- ------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
NATIONAL TAX EXEMPT BOND FUND
Shares sold 545 2,135 95 863 4 28
Shares sold from common fund -- 2,165 -- -- -- --
Shares reinvested 2 6 9 6 -- --
Shares repurchased (1,132) (2,210) (82) (447) -- --
-------- ------- -------- ------- -------- -------
Net increase/(decrease) (585) 2,096 22 422 4 28
======== ======= ======= ====== ======= ======
OHIO TAX EXEMPT BOND FUND
Shares sold 1,136 7,248 217 111 -- --
Shares sold from common fund -- -- -- -- -- --
Shares reinvested 12 24 6 11 -- --
Shares repurchased (1,780) (3,518) (66) (49) -- --
-------- ------- -------- ------- -------- -------
Net increase/(decrease) (632) 3,754 157 73 -- --
======== ======= ======= ====== ======= ======
PENNSYLVANIA MUNICIPAL BOND FUND
Shares sold 1,003 605 -- 11 -- --
Shares reinvested 1 4 -- -- -- --
Shares repurchased (237) (449) (8) (2) -- --
-------- ------- -------- ------- -------- -------
Net increase/(decrease) 767 160 (8) 9 -- --
======== ======= ======= ====== ======= ======
</TABLE>
Since Government Money Market, Money Market, Ohio Municipal Money Market,
Pennsylvania Tax Exempt Money Market, Tax Exempt Money Market, and Treasury
Money Market 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 in the Statement
of Changes in Net Assets.
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 respective Armada Fund's current day net asset value. 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 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 respective Armada Fund's current day net asset value. 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 immediately before the conversion were $444,085,137 which included
unrealized appreciation of $7,241,615.
On August 7, 1998, the National City Equity Fund for Personal Trusts #1 and
the National City Income Equity Fund for Personal Trusts #1 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
133
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
on a tax-free basis at the respective Armada Fund's current day net asset
value. 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, respectively.
7. MARKET AND CREDIT RISK
Some countries in which the International Equity Fund may invest require
government approval for the repatriation of investment income, capital or the
proceeds of sales of securities by foreign investors. In addition, if there is a
deterioration in a country's balance of payments or for other reasons, a country
may impose temporary restrictions on foreign capital remittances abroad.
The securities exchanges of certain foreign markets are substantially
smaller, less liquid and more volatile than the major securities in the United
States. Consequently, acquisition and disposition of securities by the Fund may
be inhibited. In addition, a significant proportion of the aggregate market
value of equity securities listed on the major securities exchanges in emerging
markets are held by a smaller number of investors. This may limit the number of
shares available for acquisition or disposition of the Fund.
The Balanced Allocation, Bond, Enhanced Income, GNMA, Intermediate Bond, and
Total Return Advantage Funds may invest in securities whose value is derived
from an underlying pool of mortgages or consumer loans. Prepayment of these
loans may shorten the stated maturity of these respective obligations and may
result in a loss of premium, if any has been paid.
Each Fund, other than Government Money Market, Money Market, Ohio Municipal
Money Market, Pennsylvania Tax Exempt Money Market, Tax Exempt Money Market, and
Treasury Money Market Funds may invest up to 15% of its total assets in illiquid
securities which may include securities with contractual restrictions on resale,
securities exempt from registration under Rule 144A of the Securities Act of
1933, as amended, and other securities which may not be readily marketable. The
Government Money Market, Money Market, Ohio Municipal Money Market, Pennsylvania
Tax Exempt Money Market, Tax Exempt Money Market, and Treasury Money Market
Funds may each invest up to 10% of total assets in illiquid securities. The
relative illiquidity of some of these securities may adversely affect the Fund's
ability to dispose of such securities in a timely manner and at a fair price
when it is necessary to liquidate such securities.
The Ohio Tax Exempt Bond, Pennsylvania Municipal Bond, 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 Bond 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 National Tax Exempt Bond, Ohio
Tax Exempt Bond, Pennsylvania Municipal Bond, 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 the 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.
The Funds invest in securities that include revenue bonds, tax and revenue
anticipation notes, and general obligation bonds. At November 30, 1999, the
percentage of portfolio investments by each revenue source were as follows:
National Ohio
Tax Tax Pennsylvania
Exempt Exempt Municipal
Bond Bond Bond
Revenue Bonds: -------- ------ ------------
Education 8% 8% 18%
Hospital/Nursing
Homes -- 9 3
Housing 1 3 2
Industrial
Development 2 2 10
Pollution Control 2 1 2
Public Facilities 4 6 --
Transportation 10 4 5
Utilities 18 17 16
Other 10 2 13
General Obligations: 42 48 31
Anticipation Notes: 3 -- --
--- --- ---
100% 100% 100%
134
<PAGE>
[GRAPHIC OMITTED] NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
The rating of long-term debt as a percentage of total value of investments at
November 30, 1999, is as follows:
National Ohio
Tax Tax Pennsylvania
Standard & Poor's/ Exempt Exempt Municipal
Moody's Ratings Bond Bond Bond
------------------ -------- ------ ------------
AAA/Aaa 58% 63% 82%
AA/Aa 36 29 11
A/A 4 4 --
BBB/Baa -- 1 --
NR 2 3 7
--- --- ---
100% 100% 100%
Securities rated by only one agency are shown in that category. Securities
rated by both agencies are shown with their lowest rating.
8. SECURITIES LENDING
The Funds may participate in a Securities Lending Agreement ("Lending
Agreement"). Security loans made pursuant to the Lending Agreement are required
at all times to be secured by U.S. Treasury Obligations and/or cash collateral
at least equal to 100% of the market value of securities issued in the U.S. and
105% of the market value of securities issued outside of the U.S. cash
collateral received is invested in fixed-income securities, with a weighted
average maturity not to exceed 90 days, rated in one of the top two tiers by
Standard & Poor's ratings group or Moody's Investors Service, Inc. or repurchase
agreements collateralized by such securities. However, in the event of default
or bankruptcy by the lending agent, realization and/or retention of the
collateral may be subject to legal proceedings. In the event that the borrower
fails to return loaned securities and the collateral received is insufficient to
cover the value of the loaned securities and provided such collateral is not the
result of investment losses, the lending agent has agreed to pay the amount of
the shortfall to the funds, or at the discretion of the lending agent, replace
the loaned securities. The market value of the securities on loan, and related
collateral received at November 30, 1999, and income generated for the period
ended November 30, 1999 were as follows:
Market Value Market
of Securities Value of
on Loan Collateral Income
Fund (000) (000) (000)
---- ------------- ---------- ------
Core Equity Fund $ 7,327 $ 7,601 $ 6
Equity Growth Fund 138,821 143,388 139
Equity Income Fund 56,134 57,818 98
Equity Index Fund 84,714 87,049 32
International Equity 21,844 23,079 1
Small Cap Growth Fund 15,004 15,516 38
Small Cap Value Fund 14,688 15,273 32
Tax Managed Equity Fund 56,779 58,348 23
Balanced Allocation Fund 6,023 6,210 7
Bond Fund 83,124 84,903 95
Enhanced Income Fund 14,173 14,465 6
Intermediate Bond Fund 58,546 59,989 70
Total Return Advantage Fund 85,776 88,399 69
135
<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
Garvice D. Kincaid Professor of Finance
and Dean, Gatton College of Business and Economics, University of Kentucky
Director:
Foam Design, Inc.
The Seed Corporation
Office Suites Plus, Inc.
ihigh.com.Inc.
GERALD L. GHERLEIN
Executive Vice President and General
Counsel, Eaton Corporatio
J. WILLIAM PULLEN
President and Chief Executive Officer,
Whayne Supply Company
The Armada Trustees also serve as the Trustees of the Parkstone Mutual Funds.
[ARMADA LOGO OMITTED]
<PAGE>
