<PAGE> 1
March 22, 2000
PROXY STATEMENT
===============================================================================
Dear Shareholders:
Please take the opportunity to read this proxy statement regarding the proposed
Agreement and Plan of Reorganization (the "Reorganization") between The
Parkstone Group of Funds and Armada Funds. A special meeting of shareholders
will be held on Wednesday, May 10, 2000 at One Freedom Valley Drive, Oaks,
Pennsylvania to vote on this issue.
On November 17, 1999, the Board of Trustees of The Parkstone Group of Funds
unanimously approved this Reorganization. Both fund complexes are advised by
National City Investment Management Company, a pool of talented investment
professionals from the former First of America Investment Co. and National
City's Asset Management Group.
The Reorganization would combine the portfolios of The Parkstone Group of Funds
into corresponding portfolios of Armada Funds. By consolidating substantially
similar portfolios, the funds may be able to achieve economies of scale that
could lower costs and shareholders' expenses. In addition, a reorganization of
these fund families is expected to be a tax-free event for our shareholders.
To cast your vote, one proxy card has been enclosed for each fund you own.
Please vote your shares by completing and signing the proxy card(s), and
returning them in the enclosed, postage-paid envelope. For information about
alternative voting options available to you, including touch-tone telephone and
Internet voting, please refer to your proxy card(s).
It is important that you vote each proxy card prior to the shareholders meeting
on May 10, 2000. As the meeting date approaches, you may receive a call from
Shareholder Communications Corporation ("SCC") encouraging you to exercise your
right to vote if you have not voted already. The Parkstone Group of Funds has
enlisted the services of SCC, a professional proxy solicitation firm, to assist
shareholders with the proxy process.
We value your relationship with The Parkstone Group of Funds and hope you will
vote for the proposed Reorganization. If you have any questions regarding this
proxy statement, please call our Investor Services line at 800-451-8377. If you
would like to learn more about Armada Funds, you can visit its website at
www.armadafunds.com.
Sincerely,
Robert D. Neary
Chairman
PARKSTONE(TM) FUNDS
<PAGE> 2
IMPORTANT INFORMATION TO HELP YOU UNDERSTAND AND VOTE ON THE PROPOSAL
QUESTIONS AND ANSWERS ABOUT THE REORGANIZATION PROPOSAL.
===============================================================================
1. WHAT PROPOSAL AM I BEING ASKED TO VOTE ON?
You are being asked to approve a reorganization of the portfolios of The
Parkstone Group of Funds ("Parkstone") into corresponding portfolios of the
Armada Funds ("Armada").
2. WHAT ARE THE REASONS FOR THIS REORGANIZATION?
In March of 1998, First of America Bank Corporation completed a merger
with National City Corporation. As a result of this merger, the investment
advisor for BOTH Parkstone and Armada fund families became National City
Investment Management Company ("IMC"). IMC is a registered investment advisor
with a distinguished heritage. As an affiliate of National City Corporation,
IMC has access to exceptional financial and technological resources. As a
separate entity, IMC is free to concentrate on the business of investing.
By combining the separate Armada and Parkstone mutual fund families into a
single, larger consolidated group of funds, shareholders will be offered a more
complete selection of portfolios. Additionally, by consolidating investment
portfolios that are substantially similar, the efficiency of certain
operational procedures can be improved, and the funds may be able to achieve
economies of scale that will lead to lower costs and expenses.
3. HAS PARKSTONE'S BOARD OF TRUSTEES APPROVED THE PROPOSAL?
Yes. The Board of Trustees has unanimously approved the proposal and
recommends that you vote to approve it.
4. WHICH PARKSTONE FUNDS WILL BE REORGANIZING INTO WHICH ARMADA FUNDS?
This proxy statement includes an overview of the Fund-to-Fund
reorganization as well as a detailed description of the similarities and
differences that may exist between each Parkstone portfolio and the
corresponding Armada portfolio into which it is being combined. Careful
attention was paid to combining Funds with similar investment styles and
objectives.
Pending shareholder approval, the expanded Armada Funds family will
consist of a mix of 23 consolidated funds as well as five additional funds that
have been added to the family because of the reorganization.
5. IS THE REORGANIZATION A TAXABLE EVENT FOR FEDERAL INCOME TAX PURPOSES?
Typically, the exchange of shares due to a merger does not result in a gain
or loss for federal income tax purposes.
<PAGE> 3
PARKSTONE(TM) FUNDS
===============================================================================
QUESTIONS AND ANSWERS ABOUT
SHAREHOLDER ACCOUNTS AND REPORTS.
1. I HAVE AN IRA ACCOUNT WITH PARKSTONE. HOW WILL THIS REORGANIZATION AFFECT MY
INVESTMENT?
The Custodian for all Parkstone and Armada IRAs will remain the same.
Having the same Custodian will help with a smooth transition of accounts from
Parkstone to Armada if the reorganization is approved. No additional paperwork
will be necessary to transfer your IRA assets from a Parkstone portfolio to the
corresponding Armada portfolio.
2. HOW WILL YOU DETERMINE THE NUMBER OF SHARES OF THE CORRESPONDING ARMADA
PORTFOLIO THAT I WILL RECEIVE?
Parkstone shareholders will receive the number of full and fractional
shares of the Armada portfolio(s) that correspond to their Parkstone
portfolio(s), that is equal in value to the net asset value of their shares of
the Parkstone portfolio(s) as last determined on the business day immediately
preceding the closing date of the reorganization. Therefore, your market value
will remain the same, although your share amount may change. It is anticipated
that the closing will occur in early June 2000.
3. WILL I STILL RECEIVE MY PARKSTONE FUNDS ANNUAL REPORT?
It is anticipated that the reorganization will take place closely
following the fiscal year-end for both fund complexes, May 31, 2000.
Therefore, Parkstone Funds is legally required to distribute fiscal
year-end information to only those shareholders of the five proposed continuing
funds: U.S. Government Income Fund, Large Capitalization Fund, Mid
Capitalization Fund, Michigan Municipal Bond Fund and the Treasury Fund.
Copies of both the Armada Funds Annual Report and the Parkstone Annual
Report will be available free of charge after July 30, 2000 by calling
1-800-622-FUND (3863). The Armada Funds Annual Report will also be on the
website at www.armadafunds.com.
4. WILL THE REORGANIZATION AFFECT MY DIVIDEND PAYMENTS?
The payment frequency of dividends from net income for the Balanced
Allocation Fund and each of the equity funds will change. Previously, these
funds paid dividends each month. Following the reorganization, shareholders of
the former Parkstone Equity Income Fund, Balanced Allocation Fund, Large
Capitalization Fund and the Mid Capitalization Fund will receive dividends on a
quarterly basis. The Small Capitalization Fund and International Equity Fund
shareholders will receive dividends annually.
The dividend payment schedules for the Income, Tax-Free Income and Money
Market Funds will not change.PAR-M-066-01000 (3/00)
QUESTIONS AND ANSWERS ABOUT VOTING.
1. HOW DO I VOTE MY SHARES?
You can vote your shares by completing and signing the enclosed proxy card,
and sending it in the enclosed postage-paid envelope.
Please refer to your individual proxy card for information about other
convenient voting options that may be available to you, such as touch-tone
telephone and Internet voting.
If you need any assistance, or have any questions regarding the proposal
or how to vote your shares, please call Parkstone Funds at 1-800-451-8377.
2. WHAT WILL HAPPEN IF THERE ARE NOT ENOUGH VOTES TO REACH A QUORUM BY THE
SCHEDULED SHAREHOLDER MEETING DATE?
In order to receive sufficient votes to establish a quorum, Shareholder
Communications Corporation (the proxy solicitor), Parkstone Funds, SEI
Investments Mutual Funds Services, or State Street Bank and Trust Company
("BFDS") may contact you by mail or telephone. We encourage shareholders to
vote as soon as they review the enclosed proxy materials to avoid additional
mailings or telephone calls that could result in additional costs to the Funds.
If there are not sufficient votes to approve the proposal by the time of the
shareholder meeting (May 10, 2000), the meeting may be adjourned to permit
further solicitation of proxy votes.
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[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 5
THE PARKSTONE GROUP OF FUNDS
ONE FREEDOM VALLEY DRIVE
OAKS, PENNSYLVANIA 19456
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 10, 2000
To Parkstone Shareholders:
NOTICE IS HEREBY GIVEN THAT a Special Meeting of the Shareholders
("Shareholders") of each investment portfolio ("Fund") of The Parkstone Group of
Funds ("Parkstone") will be held at SEI Investments Co., One Freedom Valley
Drive, Oaks, Pennsylvania, 19456, on May 10, 2000 at 3:00 p.m. (Eastern time)
for the following purposes:
ITEM 1. WITH RESPECT TO EACH FUND:
To approve or disapprove an Agreement and Plan of Reorganization (the
"Reorganization Agreement") and the transactions contemplated thereby,
including:
(a) the transfer of substantially all of the assets and liabilities of each
of the Parkstone Funds listed below into the corresponding Armada Fund
listed below in exchange for A Shares, B Shares or I Shares, as
applicable, of the Armada Funds:
<TABLE>
<CAPTION>
ACQUIRED FUND ACQUIRING FUND
------------- --------------
<S> <C>
Prime Obligations Fund Money Market Fund
U.S. Government Obligations Fund Government Money Market Fund
Tax-Free Fund Tax Exempt Money Market Fund
Bond Fund Bond Fund
U.S. Government Income Fund U.S. Government Income Fund
Limited Maturity Bond Fund Enhanced Income Fund
(to be renamed Limited Maturity Bond Fund)
Intermediate Government Obligations Fund Intermediate Bond Fund
Large Capitalization Fund Large Cap Ultra Fund
Equity Income Fund Equity Income Fund
Small Capitalization Fund Small Cap Growth Fund
International Discovery Fund International Equity Fund
Balanced Allocation Fund Balanced Allocation Fund
National Tax Exempt Bond Fund National Tax Exempt Bond Fund
Mid Capitalization Fund Mid Cap Growth Fund
Michigan Municipal Bond Fund Michigan Municipal Bond Fund
Treasury Fund Treasury Plus Money Market Fund;
</TABLE>
(b) the distribution of such Armada Fund shares to the shareholders of the
Parkstone Funds according to their respective interests; and
(c) the termination under state law and the Investment Company Act of 1940,
as amended, of Parkstone.
ITEM 2. WITH RESPECT TO PARKSTONE:
To transact such other business as may properly come before the Special Meeting
or any adjournment(s) thereof.
The proposed reorganization and related matters are described in the attached
Combined Prospectus/Proxy Statement. Appendix A to the Combined Prospectus/Proxy
Statement is a copy of the Reorganization Agreement.
Shareholders of record as of the close of business on February 28, 2000 are
entitled to notice of, and to vote at, the Special Meeting or any adjournment(s)
thereof.
THE BOARD OF TRUSTEES OF THE PARKSTONE GROUP OF FUNDS RECOMMENDS THAT YOU
APPROVE THESE PROPOSALS. IT IS VERY IMPORTANT THAT YOU PUT FORTH YOUR VOTE
REGARDING THESE PROPOSITIONS.
<PAGE> 6
If you are unable to attend the meeting, please choose the voting method that is
most convenient for you.
1.VOTE BY MAIL: Sign and date your proxy card(s) and return in the
enclosed postage-paid envelope. Note: Your proxy is not valid unless it
is signed.
2.VOTE BY TOUCH-TONE TELEPHONE: Please refer to the enclosed proxy card
for the toll-free telephone number and instructions.
3.VOTE VIA THE INTERNET: Please refer to the enclosed proxy card for the
web site address and instructions.
Proxies may be revoked at any time before they are exercised by submitting to
Parkstone a written notice of revocation or a subsequently executed proxy or by
attending the special meeting and voting in person.
W. Bruce McConnel, III
Secretary
March 22, 2000
<PAGE> 7
COMBINED PROSPECTUS/PROXY STATEMENT
DATED MARCH 22, 2000
THE PARKSTONE GROUP OF FUNDS
ONE FREEDOM VALLEY DRIVE
OAKS, PENNSYLVANIA 19456
(800) 451-8377
ARMADA FUNDS
ONE FREEDOM VALLEY DRIVE
OAKS, PENNSYLVANIA 19456
(800) 622-FUND (3863)
This Combined Prospectus/Proxy Statement is furnished in connection with the
solicitation of proxies by the Board of Trustees of The Parkstone Group of Funds
("Parkstone") in connection with a Special Meeting (the "Meeting") of
Shareholders ("Shareholders") to be held on May 10, 2000 at 3:00 p.m. (Eastern
time) at SEI Investments Co., One Freedom Valley Drive, Oaks, Pennsylvania,
19456, at which Shareholders will be asked to consider and approve a proposed
Agreement and Plan of Reorganization dated November 17, 1999 (the
"Reorganization Agreement"), by and between Parkstone and Armada Funds
("Armada") and the matters contemplated therein. A copy of the Reorganization
Agreement is attached as Appendix A.
Parkstone and Armada are both open-end, management investment companies.
National City Investment Management Company ("IMC"), formerly named First of
America Investment Corporation ("First of America"), currently provides
investment advisory services to Parkstone and Armada. IMC reflects a combination
of National City Bank's investment management group and First of America, an
investment advisory subsidiary of First of America Bank Corporation. First of
America formerly provided investment advisory services to Parkstone. In
reviewing the proposed reorganization (the "Reorganization"), the Parkstone
Board considered the merger of First of America Bank Corporation and National
City Corporation, the parent corporation of National City Bank ("National
City"). National City formerly provided investment advisory services to some of
the existing Armada investment portfolios (collectively, the "Existing Armada
Funds"). The Parkstone Board also considered the effect of such merger on
Parkstone; the recommendations of IMC and National City with respect to the
proposed consolidation of Parkstone and Armada; the fact that the Reorganization
would constitute a tax-free reorganization; and the fact that the interests of
Shareholders would not be diluted as a result of the Reorganization.
The Reorganization Agreement provides that initially each of the following
eleven investment portfolios of Parkstone (collectively, the "Reorganizing
Funds") will transfer substantially all its assets and known liabilities to the
Existing Armada Fund identified below opposite its name:
<TABLE>
<CAPTION>
REORGANIZING FUNDS EXISTING ARMADA FUNDS
- ------------------ ---------------------
<S> <C>
Prime Obligations Fund Money Market Fund*
U.S. Government Obligations Fund Government Money Market Fund*
Tax-Free Fund Tax Exempt Money Market Fund*
Bond Fund* Bond Fund
Limited Maturity Bond Fund Limited Maturity Bond Fund
Intermediate Government Obligations Fund (formerly the Enhanced Income Fund)*
Equity Income Fund Intermediate Bond Fund*
Small Capitalization Fund Equity Income Fund*
International Discovery Fund Small Cap Growth Fund*
Balanced Allocation Fund International Equity Fund*
National Tax Exempt Bond Fund Balanced Allocation Fund*
National Tax Exempt Bond Fund*
</TABLE>
- ---------------
* Denotes the surviving or continuing portfolio for purposes of maintaining the
financial statements and performance history in the post-reorganization funds.
<PAGE> 8
The Reorganization Agreement also provides that subsequently each of the
following five investment portfolios of Parkstone (collectively, the "Continuing
Funds") will transfer all its assets and known liabilities to the
newly-organized Armada investment portfolio (collectively, the "New Armada
Funds") identified below opposite its name:
<TABLE>
<CAPTION>
CONTINUING FUNDS NEW ARMADA FUNDS
- ---------------- ----------------
<S> <C>
Large Capitalization Fund* Large Cap Ultra Fund
U.S. Government Income Fund* U.S. Government Income Fund
Mid Capitalization Fund* Mid Cap Growth Fund
Michigan Municipal Bond Fund* Michigan Municipal Bond Fund
Treasury Fund* Treasury Plus Money Market Fund
</TABLE>
- ---------------
* Denotes the surviving or continuing portfolio for purposes of maintaining the
financial statements and performance history in the post-reorganization funds.
In exchange for the transfers of these assets and liabilities, Armada will issue
shares in the 16 Armada investment portfolios listed above (collectively, the
"Armada Funds") to the corresponding Parkstone investment portfolios listed
above (collectively, the "Parkstone Funds"). The initial transaction between the
Reorganizing Funds and the Existing Armada Funds is referred to herein as the
"Reorganizing Funds Transaction" and the subsequent transaction between the
Continuing Funds and the New Armada Funds is referred to herein as the
"Continuing Funds Transaction." The transactions are expected to occur on or
after June 9, 2000.
Most of the Parkstone Funds have three classes of shares outstanding. Armada
offers comparable classes of shares. Holders of each class of shares of a
Parkstone Fund will receive the class of shares of the corresponding Armada Fund
as set forth in the tables on pages 12 and 13 under "Information Relating to the
Proposed Reorganization -- Description of the Reorganization Agreement."
The Parkstone Funds will make liquidating distributions of the Armada Funds'
shares to the Shareholders of the Parkstone Funds, so that a holder of a class
of shares in a Parkstone Fund will receive a class of shares (as described
herein) of the corresponding Armada Fund with the same aggregate net asset value
as the Shareholder had in the Parkstone Fund immediately before the transaction.
Following the Reorganization, Shareholders of the Parkstone Funds will be
shareholders of their corresponding Armada Funds, and Parkstone will be
terminated under state law and the Investment Company Act of 1940, as amended.
The Existing Armada Funds currently are conducting investment operations as
described in this Combined Prospectus/Proxy Statement. The New Armada Funds have
recently been organized for the purpose of continuing the investment operations
of the Parkstone Large Capitalization Fund, U.S. Government Income Fund, Mid
Capitalization Fund, Michigan Municipal Bond Fund and Treasury Fund.
This Combined Prospectus/Proxy Statement sets forth the information that a
Shareholder of Parkstone should know before voting on the Reorganization
Agreement (and related transactions) and should be retained for future
reference. The Prospectus relating to the Class I shares of the Existing Armada
Funds dated September 28, 1999, and/or the Prospectus relating to the Class A, B
and C shares of the Existing Armada Funds dated December 10, 1999, which
describe the operations of those Funds, accompany this Combined Prospectus/Proxy
Statement. Additional information is set forth in the Statement of Additional
Information relating to the Existing Armada Funds dated December 10, 1999, and
this Combined Proxy/Prospectus. Additional information relating to Parkstone is
set forth in the Prospectuses dated September 17, 1999, and the Statement of
Additional Information dated September 17, 1999. Each of these documents is on
file with the Securities and Exchange Commission (the "SEC"), and is available
without charge upon oral or written request by writing or calling either
Parkstone or Armada at the respective addresses or telephone numbers indicated
on the cover page. The information contained in the Prospectuses, the Armada
Statement of Additional Information and the Parkstone Statement of Additional
Information is incorporated herein by reference.
This Combined Prospectus/Proxy Statement constitutes the Proxy Statement of
Parkstone for the meeting of its Shareholders, and Armada Funds' Prospectus for
the shares of its Existing Armada Funds that have been registered with the SEC
and are to be issued in connection with the Reorganization. Because the New
Armada Funds will be deemed to be continuations of the Continuing Funds, this
Combined Prospectus/Proxy Statement does not constitute a prospectus for the
shares that will be issued in the Continuing Funds Transaction.
This Combined Prospectus/Proxy Statement is expected to first be sent to
Shareholders on or about March 31, 2000.
<PAGE> 9
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS COMBINED PROSPECTUS/PROXY
STATEMENT AND IN THE MATERIALS EXPRESSLY INCORPORATED HEREIN BY REFERENCE AND,
IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY PARKSTONE OR ARMADA.
SHARES OF ARMADA ARE NOT BANK DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED OR OTHERWISE SUPPORTED BY, NATIONAL CITY INVESTMENT MANAGEMENT COMPANY,
ITS PARENT COMPANY, OR ANY OF ITS AFFILIATES, AND ARE NOT FEDERALLY INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT, FEDERAL DEPOSIT INSURANCE CORPORATION, OR ANY
GOVERNMENTAL AGENCY OR STATE. INVESTMENT IN ARMADA INVOLVES RISKS, INCLUDING THE
POSSIBLE LOSS OF PRINCIPAL. THERE IS NO ASSURANCE THAT THE ARMADA MONEY MARKET
FUND, GOVERNMENT MONEY MARKET FUND, TAX EXEMPT MONEY MARKET FUND OR TREASURY
PLUS MONEY MARKET FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF
$1.00 PER SHARE.
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE> 10
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Summary..................................................... 1
Proposed Reorganization................................... 1
Reasons for the Reorganization............................ 1
Federal Income Tax Consequences........................... 1
Overview of the Parkstone Funds and Armada Funds.......... 1
Voting Information........................................ 10
Risk Factors................................................ 10
Information Relating to the Proposed Reorganization......... 11
Description of the Reorganization Agreement............... 11
Capitalization............................................ 14
Federal Income Tax Consequences........................... 18
Comparison of Investment Policies and Risk Factors.......... 19
Parkstone Prime Obligations Fund and Armada Money Market
Fund................................................... 19
Parkstone U.S. Government Obligations Fund and Armada
Government Money Market Fund........................... 20
Parkstone Tax-Free Fund and Armada Tax Exempt Money Market
Fund................................................... 20
Parkstone Bond Fund and Armada Bond Fund.................. 20
Parkstone Limited Maturity Bond Fund and Armada Limited
Maturity Bond Fund (formerly Armada Enhanced Income
Fund).................................................. 20
Parkstone Intermediate Government Obligations Fund and
Armada Intermediate Bond Fund.......................... 21
Parkstone Equity Income Fund and Armada Equity Income
Fund................................................... 21
Parkstone Small Capitalization Fund and Armada Small Cap
Growth Fund............................................ 22
Parkstone International Discovery Fund and Armada
International Equity Fund.............................. 22
Parkstone Balanced Allocation Fund and Armada Balanced
Allocation Fund........................................ 23
Parkstone National Tax Exempt Bond Fund and Armada
National Tax Exempt Bond Fund.......................... 23
Investment Policies and Risks -- General.................. 24
Investment Limitations.................................... 25
Purchase and Redemption Information, Exchange Privileges,
Distribution and Pricing............................... 27
Other Information......................................... 27
Information Relating to Voting Matters...................... 28
General Information....................................... 28
Shareholder and Board Approvals........................... 28
Appraisal Rights.......................................... 44
Quorum.................................................... 44
Annual Meetings........................................... 45
Additional Information about Armada......................... 45
Additional Information about Parkstone...................... 45
Litigation.................................................. 45
Financial Statements........................................ 45
Other Business.............................................. 46
Shareholder Inquiries....................................... 46
APPENDIX A -- Agreement and Plan of Reorganization.......... A-1
APPENDIX B -- Fund Performance Data......................... B-1
APPENDIX C -- Fee and Expense Tables........................ C-1
APPENDIX D -- Shareholder Transactions and Services......... D-1
APPENDIX E -- Management's Discussion of Fund
Performance -- Existing Armada Funds...................... E-1
</TABLE>
i
<PAGE> 11
SUMMARY
The following is a summary of certain information relating to the proposed
Reorganization, the parties thereto and the related transactions, and is
qualified by reference to the more complete information contained elsewhere in
this Combined Prospectus/Proxy Statement, the Prospectuses and Statements of
Additional Information of Parkstone and Armada, and the Reorganization Agreement
attached to this Combined Prospectus/Proxy Statement as Appendix A. Parkstone's
most recent Annual Report or Semi-Annual Report to Shareholders may be obtained
free of charge by calling 1-800-451-8377 or writing One Freedom Valley Drive,
Oaks, Pennsylvania 19456. Armada's most recent Annual Report or Semi-Annual
Report to Shareholders may be obtained free of charge by calling 1-800-622-FUND
(3863) or writing One Freedom Valley Drive, Oaks, Pennsylvania 19456, or by
viewing on, or downloading from, the Armada Internet web site at
www.armadafunds.com.
PROPOSED REORGANIZATION. Based upon their evaluation of the relevant
information presented to them, and in light of their fiduciary duties under
federal and state law, Parkstone's and Armada's Boards, including their members
who are not "interested persons" within the meaning of the Investment Company
Act of 1940 (the "1940 Act"), have determined that the proposed Reorganization
is in the best interests of Parkstone's and Armada's Shareholders, respectively,
and that the interests of existing Shareholders of Parkstone and Armada,
respectively, will not be diluted as a result of such Reorganization.
The Cover Page and pages 1-10 hereof summarize the proposed Reorganization.
PARKSTONE'S BOARD OF TRUSTEES RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" APPROVAL
OF THE REORGANIZATION AGREEMENT.
REASONS FOR THE REORGANIZATION. The primary reason for the Reorganization is
the merger of First of America Bank Corporation and National City Corporation.
The merger was completed March 31, 1998. The Reorganization presents the
opportunity to combine the separate Parkstone and Armada mutual fund families
into a single, larger, consolidated group. IMC and National City have
recommended that each of the Parkstone Funds be reorganized as described in this
Combined Prospectus/Proxy Statement. In light of this recommendation, after
consideration of the reasons therefor and the proposed operations of the
combined funds after the Reorganization, and in consideration of the fact that
the Reorganization will be tax-free and will not dilute the interests of the
shareholders of Parkstone (the "Parkstone Shareholders"), the Board of Trustees
of Parkstone has authorized the Agreement and Plan of Reorganization and
recommended approval of the Reorganization by Shareholders.
FEDERAL INCOME TAX CONSEQUENCES. Drinker Biddle & Reath LLP, independent
counsel to Armada and to its Board of Trustees, and to Parkstone and its Board
of Trustees, will issue an opinion (based on certain assumptions) as of the
effective time of each of the Reorganizing Funds Transaction and the Continuing
Funds Transaction that the transactions will not give rise to the recognition of
income, gain or loss for federal income tax purposes to the Parkstone Funds or
Armada Funds or their respective shareholders. See "Information Relating to the
Proposed Reorganization -- Federal Income Tax Consequences."
OVERVIEW OF THE PARKSTONE FUNDS AND ARMADA FUNDS. Since the merger of First of
America Bank Corporation and National City Corporation, Parkstone and Armada
have acted to align their organizations. Accordingly, at this time both
Parkstone and Armada have the same: investment advisor; administrator;
distributor; transfer agent; and custodian, as described in more detail below.
There are no material differences between the investment objectives and policies
of the Continuing Funds and the corresponding New Armada Funds. The investment
objectives and policies of the Reorganizing Funds are similar to those of the
corresponding Existing Armada Funds.
PARKSTONE PRIME OBLIGATIONS FUND AND ARMADA MONEY MARKET FUND
Parkstone Prime Obligations Fund seeks to provide current income, with liquidity
and stability of principal. Armada Money Market Fund's investment objective is
to seek as high a level of current income as is consistent with liquidity and
stability of principal. Each pursues its investment objective by investing in a
diversified portfolio of high quality money market instruments and other
comparable instruments.
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND AND ARMADA GOVERNMENT MONEY MARKET
FUND
Parkstone U.S. Government Obligations Fund seeks to provide current income, with
liquidity and stability of principal by investing at least 65% of its total
assets in short-term U.S. Treasury bills, notes and other obligations issued or
guaranteed by the U.S. Government or its agencies or instrumentalities. Armada
Government Money Market Fund's investment objective
1
<PAGE> 12
is to seek as high a level of current income as is consistent with liquidity and
stability of principal by investing in obligations issued or guaranteed as to
payment of principal and interest by the U.S. government, its agencies or
instrumentalities.
PARKSTONE TAX-FREE FUND AND ARMADA TAX EXEMPT MONEY MARKET FUND
Parkstone Tax-Free Fund seeks to provide as high a level of current interest
income free from federal income taxes as is consistent with preservation of
capital and relative stability of principal. Armada Tax Exempt Money Market
Fund's investment objective is to provide as high a level of current interest
income exempt from federal income tax as is consistent with liquidity and
stability of principal. Each pursues its investment objective by investing at
least 80% of its assets in municipal securities the interest on which is
considered exempt from federal income tax.
PARKSTONE BOND FUND AND ARMADA BOND FUND
The investment objective of both Parkstone Bond Fund and Armada Bond Fund is to
provide current income and preservation of capital by investing in a portfolio
of high- and medium-grade fixed-income securities. Both Funds will normally
invest at least 80% of the value of their total assets in investment grade debt
securities of all types, and expect to maintain a dollar-weighted average
portfolio maturity of four to twelve years.
PARKSTONE LIMITED MATURITY BOND FUND AND ARMADA LIMITED MATURITY BOND FUND
(FORMERLY THE ARMADA ENHANCED INCOME FUND)
In connection with the Reorganization, Armada Enhanced Income Fund is expected
to change its name to Armada Limited Maturity Bond Fund. References in this
Combined Prospectus/Proxy Statement hereinafter will be to the Fund's new name.
The investment objective of both Parkstone Limited Maturity Bond Fund and Armada
Limited Maturity Bond Fund is to provide current income as well as preservation
of capital by investing in a portfolio of high- and medium-grade fixed-income
securities. Both Funds will normally invest at least 80% of the value of their
total assets in investment grade debt securities of all types, and expect to
maintain a dollar-weighted average portfolio maturity of one to five years.
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND AND ARMADA INTERMEDIATE BOND
FUND
Parkstone Intermediate Government Obligations Fund seeks to provide current
income as well as preservation of capital by investing primarily in U.S.
government securities. Armada Intermediate Bond Fund's investment objective is
to provide current income as well as preservation of capital by investing in a
portfolio of high- and medium-grade fixed income securities. Both Funds expect
to maintain a dollar-weighted average portfolio maturity of three to ten years.
PARKSTONE EQUITY INCOME FUND AND ARMADA EQUITY INCOME FUND
The investment objective of both Parkstone Equity Income Fund and Armada Equity
Income Fund is to provide capital appreciation with a diversified portfolio of
publicly traded equity securities which, in the aggregate, provide an above-
average current yield. Both Funds normally invest at least 80% of their total
assets in common stocks, and securities convertible into common stocks, of
companies that have the ability to pay dividends with a yield above the S&P 500
Composite Index.
PARKSTONE SMALL CAPITALIZATION FUND AND ARMADA SMALL CAP GROWTH FUND
The investment objective of both Parkstone Small Capitalization Fund and Armada
Small Cap Growth Fund is to provide capital appreciation with a diversified
portfolio of publicly traded smaller cap equity securities. Both Funds will
normally invest at least 80% of their respective total assets in securities of
companies with small stock market capitalizations.
PARKSTONE INTERNATIONAL DISCOVERY FUND AND ARMADA INTERNATIONAL EQUITY FUND
The investment objective of both Parkstone International Discovery Fund and
Armada International Equity Fund is to provide capital appreciation by investing
in equity securities of foreign issuers. Both Funds will normally invest at
least 80% of their respective total assets in equity securities of foreign
issuers.
2
<PAGE> 13
PARKSTONE BALANCED ALLOCATION FUND AND ARMADA BALANCED ALLOCATION FUND
The investment objective of both Parkstone Balanced Allocation Fund and Armada
Balanced Allocation Fund is to provide long-term capital appreciation and
current income. Each pursues this investment objective by investing in any type
or class of securities, including all types of common stocks, fixed income
securities and securities convertible into common stocks.
PARKSTONE NATIONAL TAX EXEMPT BOND FUND AND ARMADA NATIONAL TAX EXEMPT BOND FUND
The investment objective of both Parkstone National Tax Exempt Bond Fund and
Armada National Tax Exempt Bond Fund is to provide current interest income
exempt from federal income tax as is consistent with conservation of capital.
Each pursues this investment objective by investing at least 80% of its total
assets in debt securities that generate income exempt from federal tax.
See "Comparison of Investment Policies and Risk Factors" below and the Parkstone
and Armada Prospectuses, which are incorporated by reference herein, for a
description of the similarities and differences between the investment
objectives and policies of the Reorganizing Funds and the corresponding Existing
Armada Funds.
CERTAIN ARRANGEMENTS WITH SERVICE PROVIDERS -- PARKSTONE. IMC serves as
investment adviser for each Parkstone Fund and is entitled to receive advisory
fees from them, computed daily and paid monthly, at the following annual rates,
expressed as a percentage of average net assets:
<TABLE>
<CAPTION>
ACTUAL ADVISORY
CURRENT FEE FOR FISCAL PERIOD
GROSS ENDED MAY 31, 1999
PARKSTONE FUNDS ADVISORY FEE (AFTER WAIVERS)
- --------------- ------------ ---------------------
<S> <C> <C>
Prime Obligations Fund...................................... 0.35%* 0.40%
U.S. Government Obligations Fund............................ 0.35%* 0.40%
Tax-Free Fund............................................... 0.35%* 0.40%
Bond Fund................................................... 0.55%* 0.70%
Limited Maturity Bond Fund.................................. 0.45%* 0.55%
Intermediate Government Obligations Fund.................... 0.55%* 0.70%
Equity Income Fund.......................................... 0.75%* 1.00%
Small Capitalization Fund................................... 1.00% 1.00%
International Discovery Fund................................ 1.15%* 1.16%
Balanced Allocation Fund.................................... 0.75%* 0.75%
National Tax Exempt Bond Fund............................... 0.55%* 0.55%
Large Capitalization Fund................................... 0.75%* 0.80%
U.S. Government Income Fund................................. 0.55%* 0.45%
Mid Capitalization Fund..................................... 1.00% 1.00%
Michigan Municipal Bond Fund................................ 0.55%* 0.55%
Treasury Fund............................................... 0.30%* 0.40%
</TABLE>
- ---------------
* The contractual Advisory Fees for these Funds were changed in October, 1999.
Pursuant to the Parkstone investment advisory contract, and subject to such
policies as Parkstone's Board of Trustees may determine, IMC furnishes a
continuous investment program for each Fund. IMC also directs the investments of
the Parkstone Funds in accordance with each Fund's investment objectives,
policies and limitations, and creates and maintains all necessary books and
records.
SEI Investments Mutual Funds Services (the "Administrator") serves as the
administrator for each Parkstone Fund. For its services, the Administrator
receives a fee, calculated daily and paid periodically, at the annual rate of
0.10% of the average daily net assets of each Parkstone Fund, or such other fee
as may be agreed upon from time to time in writing by Parkstone and the
Administrator. National City Bank serves as sub-administrator for each Parkstone
Fund under a Sub-Administrator Agreement with the Administrator and provides
certain services as may be requested by the Administrator from time to time. For
its services as sub-administrator, National City Bank receives from the
Administrator a fee not to exceed 0.02% of each Fund's average daily net assets.
3
<PAGE> 14
State Street Bank and Trust Company serves as Parkstone's transfer agent and
dividend disbursing agent. Effective April 3, 2000, the Administrator also
provides certain fund accounting services to Parkstone. Prior to that date,
those services were provided by BISYS Fund Services Ohio, Inc. ("BISYS Ohio").
Union Bank of California, N.A. provides subcustodial services. National City
Bank serves as custodian for all Parkstone Funds.
SEI Investments Distribution Co. (the "Distributor"), with principal offices
located at One Freedom Valley Drive, Oaks, Pennsylvania 19456, serves as the
principal underwriter and distributor for Parkstone. The Distributor receives no
fee under its distribution agreement with Parkstone, but it may retain some or
all of any sales charges imposed upon the Investor A or Investor B Shares, and
may receive compensation under the distribution and shareholder services plans
described below.
Parkstone has adopted various distribution and shareholder services plans (the
"Plans") pursuant to Rule 12b-1 under the 1940 Act. Parkstone has adopted an
Investor A Distribution and Shareholder Service Plan (the "Investor A Plan") and
an Investor B Distribution and Shareholder Service Plan (the "Investor B Plan").
Under each Plan, each Fund is authorized to pay or reimburse the Distributor for
certain expenses that are incurred in connection with shareholder and
distribution services. Such amounts may be used by the Distributor to pay banks
and their affiliates (including IMC and its affiliates), and other institutions,
including participating broker-dealers ("Participating Organizations") for
administration, distribution and/or shareholder service assistance. Under the
Plans, a Participating Organization may include the Distributor, its
subsidiaries and affiliates.
The Investor A Plan authorizes each Fund to pay the Distributor a shareholder
and distribution fee in an amount not to exceed on an annual basis 0.25% of the
average daily net assets of Investor A Shares of such Fund. The Investor B Plan
authorizes each Fund to pay the Distributor a distribution fee in an amount not
to exceed on an annual basis 0.75% of the average daily net assets of Investor B
Shares of such Fund, plus a service fee in an amount not to exceed on an annual
basis 0.25% of the average daily net assets of Investor B Shares of such Fund.
Pursuant to the Plans, the Distributor may enter into agreements with
Participating Organizations for providing shareholder and distribution services
to their customers who are the record or beneficial owners of such shares. The
shareholder and distribution services provided by Participating Organizations
pursuant to the Plans include: promoting the purchase of shares; processing
purchase, exchange or redemption requests from customers and placing orders with
the Distributor or the transfer agent; processing dividend and distribution
payments from a Fund on behalf of customers; providing information periodically
to customers, including information showing their positions; providing
sub-accounting; responding to inquiries from customers; arranging for bank
wires; and providing other similar services as may be reasonably requested.
The Plans are "compensation" type plans as opposed to "reimbursement" type
plans. Accordingly, payments under the Plans are based on the expressed fee
rather than on the specific amounts expended by the Distributor for distribution
purposes. The Distributor may be able to recover such amounts or may earn a
profit from payments made under the Plans.
Prior to September 11, 1998, BISYS was Parkstone's distributor. For the fiscal
period from September 14, 1998 to May 31, 1999, SEI received $845,227 pursuant
to the Investor A Plan to compensate dealers for their distribution and
shareholder service assistance, which represented 0.25% of the Parkstone Funds'
Investor A Shares average net assets during that period. For the fiscal period
from June 1, 1998 to September 20, 1998, BISYS received $612,647 pursuant to the
Investor A Plan to compensate dealers for their distribution and shareholder
service assistance, which represented 0.25% of the Parkstone Funds' Investor A
Shares average net assets during that period.
For the fiscal period from September 21, 1998 to May 31, 1999, the Distributor
received $226,863 pursuant to the Investor B Plan to compensate dealers for
their distribution and shareholder service assistance, which represented 0.75%
of the Parkstone Funds' Investor B Shares average net assets during that period.
For the fiscal period from June 1, 1998 to September 20, 1998, BISYS received
$469,426 pursuant to the Investor B Plan to compensate dealers for their
distribution and shareholder service assistance, which represented 0.75% of the
Parkstone Funds' Investor B Shares average net assets during that period.
PricewaterhouseCoopers, LLP ("PWC") has resigned as independent auditor of
Parkstone and will not provide an audit for the fiscal year ending May 31, 2000.
Ernst & Young, LLP, which provides similar services for Armada, has been
retained to provide this audit as of February 16, 2000. PWC's reports for the
past two years did not contain any adverse opinions, disclaimer of opinions,
modifications or qualifications. There have been no disagreements during the
past two years between PWC and Parkstone regarding any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure.
4
<PAGE> 15
CERTAIN ARRANGEMENTS WITH SERVICE PROVIDERS -- ARMADA. IMC currently serves as
investment adviser to each Armada Fund listed below. IMC is entitled to receive
advisory fees from the Armada Funds computed daily and paid monthly, at the
following annual rates, expressed as a percentage of average daily net assets:
<TABLE>
<CAPTION>
ACTUAL ADVISORY
FEE FOR FISCAL YEAR
GROSS ENDED MAY 31, 1999
ARMADA FUNDS ADVISORY FEE (AFTER WAIVERS)
- ------------ ------------ -------------------
<S> <C> <C>
Money Market Fund........................................... 0.35% 0.25%
Government Money Market Fund................................ 0.35% 0.25%
Tax Exempt Money Market Fund................................ 0.35% 0.15%
Bond Fund................................................... 0.55% 0.55%
Limited Maturity Bond Fund.................................. 0.45% 0.22%(1)
Intermediate Bond Fund...................................... 0.55% 0.40%
Equity Income Fund.......................................... 0.75% 0.75%
Small Cap Growth Fund....................................... 1.00% 0.93%(1)
International Equity Fund................................... 1.15% 1.04%(1)
Balanced Allocation Fund.................................... 0.75% 0.71%(1,3)
National Tax Exempt Bond Fund............................... 0.55% 0.04%(1)
Large Cap Ultra Fund........................................ 0.75% N/A(2)
U.S. Government Income Fund................................. 0.55% N/A(2)
Mid Cap Growth Fund......................................... 1.00% N/A(2)
Michigan Municipal Bond Fund................................ 0.55% N/A(2)
Treasury Plus Money Market Fund............................. 0.30% N/A(2)
</TABLE>
- ---------------
(1) Advisor fee or waiver changed during the period.
(2) These are the New Armada Funds which have not commenced operations as of the
date hereof.
(3) This is a new portfolio which commenced investment operations on July 10,
1998.
The gross advisory fees for the Armada Funds are the same as the gross advisory
fees for the corresponding Parkstone Funds.
Subject to the general supervision of Armada's Board of Trustees and in
accordance with each Fund's investment policies, IMC manages the investments of
each Fund, makes decisions with respect to and places orders for all purchases
and sales of a Fund's securities, and maintains certain records relating to such
purchases and sales.
See "Investment Advisers" in Armada's Prospectuses accompanying this Combined
Prospectus/Proxy Statement which are incorporated herein by reference, for
additional information on Armada's advisers and sub-adviser.
Administrative services are provided to Armada by the Administrator. For its
services, the Administrator receives a fee, calculated daily and paid monthly,
at the annual rate of 0.07% of the first $18 billion of the combined net assets
of each Armada Fund, and 0.06% of the combined net assets in excess of $18
billion. These fees are lower than the 0.10% currently paid by Parkstone for
these services. The Administrator is also entitled to be reimbursed for its
out-of-pocket expenses incurred on behalf of the funds. IMC serves as
sub-administrator for each Armada Fund. For its services as sub-administrator,
IMC is entitled to receive from the Administrator a fee, calculated daily and
paid monthly, at an annual rate of up to a maximum of 0.01% of the aggregate
average daily net assets of all of the investment funds of Armada up to $15
billion and 0.015% of the aggregate average daily net assets over $15 billion.
See "Administrator" in Armada's Statement of Additional Information, which is
incorporated herein by reference, for additional information on the
Administrator.
State Street Bank and Trust Company serves as Armada's transfer and dividend
disbursing agent. Custodial services are provided to Armada by National City
Bank. Foreign Custodian Services are provided by Union Bank of California. See
"Custodian Services and Transfer Agency Agreements" in Armada's Statement of
Additional Information, which is incorporated herein by reference, for
additional information about Armada's transfer agent and custodian.
SEI Investments Distribution Co. also serves as distributor of the shares of
Armada's Funds. Pursuant to Armada's Distribution Agreement dated May 1, 1998,
and Rule 12b-1 under the 1940 Act, Armada adopted a Service and Distribution
Plan relating to the I and A classes of shares ("I and A Plan") and a separate B
Shares Distribution and Servicing Plan
5
<PAGE> 16
relating to the B class of shares ("B Shares Plan"). Under the I and A Plan,
Armada reimburses the Distributor for services provided and expenses assumed in
providing Armada advertising, marketing, prospectus printing and other
distribution services at the annual rate not in excess of 0.10% of the average
net assets of its I and A classes. This fee is lower than the 0.25% distribution
fee which is applicable to the Parkstone Investor A Shares. Additionally, the
Distributor may receive front-end sales charges in connection with the sale of A
Shares.
Under the B Shares Plan, Armada pays the Distributor up to 0.75% annually of the
average daily net assets of each Fund's B Shares for the same types of services
provided and expenses assumed as in the I and A Plan. Additionally, the
Distributor is entitled to receive all contingent deferred sales charges
received in connection with the redemption of each Fund's B Shares. Such
compensation is payable monthly and accrued daily by each Fund's B Shares only.
Because theses fees are paid out of a Fund's assets on an on-going basis, over
time these fees will increase the cost of your investment and may cost you more
than paying other types of sales charges.
Under the Shareholder Services Plan relating to each Fund's A Shares and the B
Shares Plan, Armada enters into shareholder servicing agreements with certain
financial institutions. Pursuant to these agreements the institutions agree to
render shareholder administrative services to their customers who are the
beneficial owners of A or B Shares in consideration for the payment of up to
0.25% (on an annualized basis), with respect to the Bond, Intermediate Bond,
U.S. Government Income, Equity Income, Small Cap Growth, International Equity,
Balanced Allocation, Mid Cap Growth and Large Cap Ultra Funds, up to 0.15% (on
an annualized basis), with respect to the Money Market, Government Money Market,
Tax Exempt Money Market and Treasury Plus Money Market Funds and the Limited
Maturity Bond Fund (B Shares only), and up to 0.10% (on an annualized basis),
with respect to the Michigan Municipal Bond and National Tax Exempt Bond Funds
and the Limited Maturity Bond Fund (A Shares Only), of such respective shares'
average daily net asset value. As described herein, the service fees for the
Armada Funds are the same as, or in the case of certain portfolios, lower than,
the service fees for the corresponding Parkstone Funds. Persons entitled to
receive compensation for servicing A or B Shares may receive different
compensation with respect to those shares than with respect to I Shares in the
same Fund. Shareholder administrative services may include aggregating and
processing purchase and redemption orders, processing dividend payments from
Armada on behalf of customers, providing information periodically to customers
showing their position in A and B Shares, and providing sub-transfer agent
services or the information necessary for subaccounting, with respect to A and B
Shares beneficially owned by customers.
The I and A Plan is a "reimbursement" type plan whereas the B Shares Plan is a
"compensation" type plan. Accordingly, payments by A and I Shares under its Plan
are based on direct and indirect costs and expenses incurred, and payments by B
Shares are based on the expressed fee rather than on the specific amounts
expended by the Distributor for B Shares distribution purposes. The Distributor
may be able to recover such amounts or may earn a profit from payments made by B
Shares of Armada under the B Shares Plan. All Parkstone distribution and service
fees are "compensation" type fees.
For the fiscal year ended May 31, 1999, Armada paid, in the aggregate, fees to
the Distributor pursuant to the Distribution Plans of $801,528, $34,077, and
$3,099,926, respectively, which represent 0.04%, 0.75% and 0.04%, of the A, B
and I Shares average net assets during that period.
COMPARATIVE FEE AND EXPENSE TABLES. The tables presented at Appendix C -- Fee
and Expense Tables show (i) information regarding the fees and expenses paid by
each class of shares of each Parkstone Fund and of each class of shares of each
Armada Fund as of their most recent fiscal years, restated to reflect expenses
the Parkstone Fund and the Armada Fund, respectively, expect to incur during the
current fiscal year and (ii) estimated fees and expenses on a pro forma basis
giving effect to the proposed Reorganization.
6
<PAGE> 17
OPERATING EXPENSE RATIOS -- PARKSTONE. The following table sets forth the
ratios of operating expenses to average net assets of the Parkstone Funds for
the fiscal period ended May 31, 1999 (a) after fee waivers and expense
reimbursements, and (b) absent fee waivers and expense reimbursements:
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED MAY 31, 1999
------------------------------------------
RATIO OF OPERATING RATIO OF OPERATING
EXPENSES TO AVERAGE EXPENSES TO AVERAGE
NET ASSETS AFTER NET ASSETS ABSENT
FEE WAIVERS AND FEE WAIVERS AND
EXPENSE EXPENSE
PARKSTONE FUNDS REIMBURSEMENTS REIMBURSEMENTS
- --------------- ------------------- -------------------
<S> <C> <C>
Parkstone Prime Obligations Fund
Investor A Shares......................................... 0.76% 0.93%
Investor B Shares......................................... 1.66% 1.67%
Institutional Shares...................................... 0.65% 0.67%
Parkstone U.S. Government Obligations Fund
Investor A Shares......................................... 0.75% 0.92%
Institutional Shares...................................... 0.67% 0.69%
Parkstone Tax-Free Fund
Investor A Shares......................................... 0.77% 0.94%
Institutional Shares...................................... 0.68% 0.70%
Parkstone Bond Fund
Investor A Shares......................................... 1.19% 1.28%
Investor B Shares......................................... 1.94% 2.03%
Institutional Shares...................................... 0.94% 1.03%
Parkstone Limited Maturity Bond Fund
Investor A Shares......................................... 1.08% 1.32%
Investor B Shares......................................... 1.83% 2.07%
Institutional Shares...................................... 0.84% 1.07%
Parkstone Intermediate Government Obligations Fund
Investor A Shares......................................... 1.24% 1.33%
Investor B Shares......................................... 1.99% 2.08%
Institutional Shares...................................... 0.99% 1.08%
Parkstone Equity Income Fund
Investor A Shares......................................... 1.59% 1.59%
Investor B Shares......................................... 2.34% 2.34%
Institutional Shares...................................... 1.34% 1.34%
Parkstone Small Capitalization Fund
Investor A Shares......................................... 1.61% 1.61%
Investor B Shares......................................... 2.37% 2.37%
Institutional Shares...................................... 1.36% 1.36%
Parkstone International Discovery Fund
Investor A Shares......................................... 1.82% 1.82%
Investor B Shares......................................... 2.57% 2.57%
Institutional Shares...................................... 1.57% 1.57%
Parkstone Balanced Allocation Fund
Investor A Shares......................................... 1.36% 1.61%
Investor B Shares......................................... 2.11% 2.36%
Institutional Shares...................................... 1.11% 1.36%
Parkstone National Tax Exempt Bond Fund
Investor A Shares......................................... 1.02% 1.31%
Investor B Shares......................................... 1.77% 2.06%
Institutional Shares...................................... 0.77% 1.06%
</TABLE>
7
<PAGE> 18
<TABLE>
<CAPTION>
FISCAL PERIOD ENDED MAY 31, 1999
------------------------------------------
RATIO OF OPERATING RATIO OF OPERATING
EXPENSES TO AVERAGE EXPENSES TO AVERAGE
NET ASSETS AFTER NET ASSETS ABSENT
FEE WAIVERS AND FEE WAIVERS AND
EXPENSE EXPENSE
PARKSTONE FUNDS REIMBURSEMENTS REIMBURSEMENTS
- --------------- ------------------- -------------------
<S> <C> <C>
Parkstone Large Capitalization Fund
Investor A Shares......................................... 1.35% 1.35%
Investor B Shares......................................... 2.11% 2.11%
Institutional Shares...................................... 1.10% 1.10%
Parkstone U.S. Government Income Fund
Investor A Shares......................................... 1.00% 1.34%
Investor B Shares......................................... 1.75% 2.09%
Institutional Shares...................................... 0.75% 1.09%
Parkstone Mid Capitalization Fund
Investor A Shares......................................... 1.57% 1.57%
Investor B Shares......................................... 2.32% 2.32%
Institutional Shares...................................... 1.32% 1.32%
Parkstone Michigan Municipal Bond Fund
Investor A Shares......................................... 1.01% 1.29%
Investor B Shares......................................... 1.76% 2.05%
Institutional Shares...................................... 0.76% 1.05%
Parkstone Treasury Fund
Investor A Shares......................................... 0.67% 0.91%
Institutional Shares...................................... 0.58% 0.68%
</TABLE>
OPERATING EXPENSE RATIOS -- ARMADA. The following tables set forth the ratios
of operating expenses to average net assets of the Armada Funds for the fiscal
year ended May 31, 1999 (a) after fee waivers and expense reimbursements, and
(b) absent fee waivers and expense reimbursements:
<TABLE>
<CAPTION>
FISCAL YEAR ENDED MAY 31, 1999
------------------------------------------
RATIO OF OPERATING RATIO OF OPERATING
EXPENSES TO AVERAGE EXPENSES TO AVERAGE
NET ASSETS AFTER NET ASSETS ABSENT
FEE WAIVERS AND FEE WAIVERS AND
EXPENSE EXPENSE
ARMADA FUNDS REIMBURSEMENTS REIMBURSEMENTS
- ------------ ------------------- -------------------
<S> <C> <C>
Armada Money Market Fund
A Shares.................................................. 0.56% 0.66%
B Shares.................................................. 1.27% 1.37%
I Shares.................................................. 0.42% 0.52%
Armada Government Money Market Fund
A Shares.................................................. 0.57% 0.67%
I Shares.................................................. 0.42% 0.52%
Armada Tax Exempt Money Market Fund
A Shares.................................................. 0.44% 0.64%
I Shares.................................................. 0.30% 0.50%
Armada Bond Fund
A Shares.................................................. 0.96% 0.96%
B Shares.................................................. 1.66% 1.66%
I Shares.................................................. 0.70% 0.70%
Armada Limited Maturity Bond Fund
A Shares.................................................. 0.53% 0.75%
B Shares.................................................. N/A* N/A*
I Shares.................................................. 0.43% 0.65%
</TABLE>
8
<PAGE> 19
<TABLE>
<CAPTION>
FISCAL YEAR ENDED MAY 31, 1999
------------------------------------------
RATIO OF OPERATING RATIO OF OPERATING
EXPENSES TO AVERAGE EXPENSES TO AVERAGE
NET ASSETS AFTER NET ASSETS ABSENT
FEE WAIVERS AND FEE WAIVERS AND
EXPENSE EXPENSE
ARMADA FUNDS REIMBURSEMENTS REIMBURSEMENTS
- ------------ ------------------- -------------------
<S> <C> <C>
Armada Intermediate Bond Fund
A Shares.................................................. 0.86% 1.00%
B Shares.................................................. 1.57% 1.71%
I Shares.................................................. 0.61% 0.75%
Armada Equity Income Fund
A Shares.................................................. 1.18% 1.18%
B Shares.................................................. 1.89% 1.89%
I Shares.................................................. 0.93% 0.93%
Armada Small Cap Growth Fund
A Shares.................................................. 1.51% 1.51%
B Shares.................................................. 2.23% 2.23%
I Shares.................................................. 1.27% 1.27%
Armada International Equity Fund
A Shares.................................................. 1.68% 1.68%
B Shares.................................................. 2.43% 2.43%
I Shares.................................................. 1.43% 1.43%
Armada Balanced Allocation Fund
A Shares.................................................. 1.31% 1.31%
B Shares.................................................. 2.02% 2.02%
I Shares.................................................. 1.06% 1.06%
Armada National Tax Exempt Bond Fund
A Shares.................................................. 0.46% 0.97%
B Shares.................................................. 1.17% 1.68%
I Shares.................................................. 0.36% 0.87%
Large Cap Ultra Fund
A Shares.................................................. N/A(1) N/A(1)
B Shares.................................................. N/A(1) N/A(1)
I Shares.................................................. N/A(1) N/A(1)
Armada U.S. Government Income Fund
A Shares.................................................. N/A(1) N/A(1)
B Shares.................................................. N/A(1) N/A(1)
I Shares.................................................. N/A(1) N/A(1)
Armada Mid Cap Growth Fund
A Shares.................................................. N/A(1) N/A(1)
B Shares.................................................. N/A(1) N/A(1)
I Shares.................................................. N/A(1) N/A(1)
</TABLE>
9
<PAGE> 20
<TABLE>
<CAPTION>
FISCAL YEAR ENDED MAY 31, 1999
------------------------------------------
RATIO OF OPERATING RATIO OF OPERATING
EXPENSES TO AVERAGE EXPENSES TO AVERAGE
NET ASSETS AFTER NET ASSETS ABSENT
FEE WAIVERS AND FEE WAIVERS AND
EXPENSE EXPENSE
ARMADA FUNDS REIMBURSEMENTS REIMBURSEMENTS
- ------------ ------------------- -------------------
<S> <C> <C>
Armada Michigan Municipal Bond Fund
A Shares.................................................. N/A(1) N/A(1)
B Shares.................................................. N/A(1) N/A(1)
I Shares.................................................. N/A(1) N/A(1)
Armada Treasury Plus Money Market Fund
A Shares.................................................. N/A(1) N/A(1)
I Shares.................................................. N/A(1) N/A(1)
</TABLE>
- ---------------
* As of 5/31/99 the B Shares of this Fund had not yet been offered.
(1) The Armada Large Cap Ultra Fund, U.S. Government Income Fund, Mid Cap Growth
Fund, Michigan Municipal Bond Fund and Treasury Plus Money Market Fund will
not commence investment operations until the Reorganization is effective.
VOTING INFORMATION. This Combined Prospectus/Proxy Statement is being furnished
in connection with the solicitation of proxies by Parkstone's Board of Trustees
in connection with a Special Meeting of Shareholders to be held at SEI
Investments Co., One Freedom Valley Drive, Oaks, Pennsylvania, 19456, on May 10,
2000 at 3:00 p.m. (Eastern time). Only Shareholders of record at the close of
business on February 28, 2000 will be entitled to notice of and to vote at the
Meeting. Every Shareholder is entitled to one vote for every dollar of value
invested, and to have a proportionate fractional vote for any fraction of one
dollar invested. All shares will vote separately by each Fund. Shares
represented by a properly executed proxy will be voted in accordance with the
instructions thereon, or if no specification is made, the persons named as
proxies will vote in favor of each proposal set forth in the Notice of Meeting.
Proxies may be revoked at any time before they are exercised by submitting to
Parkstone a written notice of revocation or a subsequently executed proxy or by
attending the Meeting and voting in person. For additional information,
including a description of the Shareholder vote required for approval of the
Reorganization Agreement and related transactions contemplated thereby, see
"Information Relating to Voting Matters."
RISK FACTORS
Because of the similarities of the investment objectives and policies of the
Reorganizing Funds and the corresponding Existing Armada Funds, management
believes that an investment in an Existing Armada Fund involves risks that are
similar to those of the corresponding Reorganizing Fund. There are, however,
differences between the Reorganizing Funds and the Existing Armada Funds as
noted above in "Summary -- Overview of the Parkstone Funds and Armada Funds" and
below under "Comparison of Investment Policies and Risk Factors." These
differences can present different risks.
The following discussion highlights the principal risk factors associated with
an investment in the Reorganizing Funds, the Continuing Funds and the Existing
Armada Funds and is qualified in its entirety by the more extensive discussion
of risk factors in "Comparison of Investment Policies and Risk Factors."
Market Risk -- (Armada International Equity, Small Cap Growth, Equity Income,
Balanced Allocation, Limited Maturity Bond, Mid Cap Growth and Large Cap Ultra
Funds. Parkstone International Discovery, Small Capitalization, Mid
Capitalization, Large Capitalization, Equity Income, and Balanced Allocation
Funds) Market risk is the risk that the value of a Fund's investments will
fluctuate as the stock or bond markets fluctuate and that prices overall will
decline over short or longer-term periods.
Interest Rate Risk -- (Armada Balanced Allocation, Bond, Intermediate Bond,
Limited Maturity Bond, National Tax Exempt Bond, Tax Exempt Money Market, Money
Market, Government Money Market, U.S. Government Income, Michigan Municipal Bond
and Treasury Plus Money Market Funds. Parkstone Equity Income, Balanced
Allocation, Bond, Intermediate Government Obligations, U.S. Government Income,
Limited Maturity Bond, Michigan Municipal Bond, National Tax Exempt Bond,
Tax-Free, Prime Obligations, U.S. Government Obligations and Treasury Funds)
Interest rate risk is the risk that changes in interest rates will affect the
value of a Fund's investments in income-producing, fixed-income or debt
securities. Increases in interest rates may cause the value of a Fund's
investments to decline.
10
<PAGE> 21
Credit Risk -- (Armada Balanced Allocation, Bond, Intermediate Bond, Limited
Maturity Bond, National Tax Exempt Bond, Tax Exempt Money Market, Money Market,
Mid Cap Growth and Michigan Municipal Bond Funds. Parkstone Equity Income,
Balanced Allocation, Bond, Intermediate Government Obligations, U.S. Government
Income, Limited Maturity Bond, Michigan Municipal Bond, National Tax Exempt
Bond, Tax-Free, Prime Obligations, and U.S. Government Obligations Funds.)
Credit risk is the risk that the issuer of a security will be unable or
unwilling to make timely payments of interest or principal, or to otherwise
honor its obligations.
Foreign Risk -- (Armada International Equity, Small Cap Growth, Equity Income,
Balanced Allocation, Intermediate Bond, Limited Maturity Bond and Mid Cap Growth
Funds. Parkstone International Discovery, Small Capitalization, Mid
Capitalization, Large Capitalization, Equity Income and Balanced Allocation
Funds.) Foreign risk is the risk of investments in issuers located in foreign
countries, which may have greater price volatility and less liquidity.
Investments in foreign securities are also subject to political, regulatory, and
diplomatic risks. Foreign risk includes currency risk, which may occur due to
fluctuations in the exchange rates between the U.S. dollar and foreign
currencies. This risk could negatively affect the value of a Fund's investments.
Municipal Issuer Risk -- (Armada National Tax Exempt Bond, Tax Exempt Money
Market, Money Market and Michigan Municipal Bond Funds. Parkstone Michigan
Municipal Bond, National Tax Exempt Bond and Tax-Free Funds.) A Fund's
investments in municipal securities may also have exposure to special factors
that may adversely affect the value of municipal securities, and have a
significant effect on the value of the Fund's investments. These factors include
political or legislative changes, uncertainties related to the tax status of
municipal securities or the rights of investors in these securities.
Mortgage/Asset Backed Securities Risk -- (Armada Bond, Intermediate Bond,
Limited Maturity Bond and U.S. Government Income Funds. Parkstone Bond,
Intermediate Government Obligations, U.S. Government Income and Limited Maturity
Bond Funds.) Funds that invest in mortgage or asset-backed securities are
subject to the risk that mortgages or other assets may be prepaid when interest
rates decline, forcing the Fund to invest in securities with lower interest
rates. For this and other reasons, mortgage and asset-backed securities may have
significantly greater price and yield volatility than traditional debt
securities.
There is no assurance that any portfolio will achieve its investment objective.
INFORMATION RELATING TO THE PROPOSED REORGANIZATION
Parkstone has entered into an agreement whereby its investment portfolios are to
be acquired by portfolios of Armada. Significant provisions of this
Reorganization Agreement are summarized below; however, this summary is
qualified in its entirety by reference to the Reorganization Agreement, a copy
of which is attached as Appendix A to this Combined Prospectus/Proxy Statement.
DESCRIPTION OF THE REORGANIZATION AGREEMENT. There are sixteen separate
Parkstone investment portfolios that are intended to participate in the
reorganization. Initially, the assets of eleven of them will be acquired by
eleven similar investment portfolios currently offered by Armada. Subsequently,
five portfolios will be acquired by five new Armada portfolios which have been
organized to continue the operations of these Parkstone Funds.
The Reorganization Agreement provides, first, that substantially all of the
assets and liabilities of the Reorganizing Funds will be transferred to the
Existing Armada Funds identified in the table below. Thereafter, substantially
all of the assets and liabilities of the Continuing Funds will be transferred to
the New Armada Funds identified in the table below. The holders of each class of
shares of a Parkstone Fund will receive the class of shares of the corresponding
Armada Fund identified in the table.
In the tables, (a) opposite the name of each Parkstone Fund is the name of the
Armada Fund which will issue shares to such Parkstone Fund, and (b) opposite the
name of each class of shares of the Parkstone Fund is the name of the class of
shares of the Armada Fund to be distributed to the holders of such Parkstone
class. With respect to the Reorganizing Funds, the number of each class of
shares to be issued by the Armada Funds will have an aggregate net asset value
equal to the aggregate net asset value of the corresponding class or classes of
shares of the particular Parkstone Fund as of the regular close of the New York
Stock Exchange, currently 4:00 p.m. New York time, on the business day
immediately preceding the transfer relating to the Reorganizing Funds. With
respect to the Continuing Funds, the number of each class of shares to be issued
by the Armada Funds will have an aggregate net asset value equal to the
aggregate net asset value of the corresponding class or classes of shares of the
particular Parkstone Fund as of the regular close of the New York Stock
11
<PAGE> 22
Exchange, currently 4:00 p.m. New York time, on the business day immediately
preceding the transfer relating to the Continuing Funds.
The four Armada money market funds (Money Market Fund, Treasury Plus Money
Market Fund, Government Money Market Fund and Tax Exempt Money Market Fund) may
have minute differences in market-based net asset values per share from their
Parkstone counterparts; however, it is a condition of the Reorganization that
the per-share amortized cost values of these portfolios be identical with those
of their corresponding Parkstone money market funds.
<TABLE>
<CAPTION>
REORGANIZING FUNDS AND CLASSES EXISTING ARMADA FUNDS AND CLASSES
- ------------------------------ ---------------------------------
<S> <C>
Prime Obligations Fund Money Market Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
U.S. Government Obligations Fund Government Money Market Fund*
Investor A Shares A Shares
Institutional Shares I Shares
Tax-Free Fund Tax Exempt Money Market Fund*
Investor A Shares A Shares
Institutional Shares I Shares
Bond Fund* Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Limited Maturity Bond Fund Limited Maturity Bond Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Intermediate Government Obligations Fund Intermediate Bond Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Equity Income Fund Equity Income Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Small Capitalization Fund Small Cap Growth Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
International Discovery Fund International Equity Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Balanced Allocation Fund Balanced Allocation Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
National Tax Exempt Bond Fund National Tax Exempt Bond Fund*
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
</TABLE>
12
<PAGE> 23
<TABLE>
<CAPTION>
CONTINUING FUNDS AND CLASSES EXISTING ARMADA FUNDS AND CLASSES
- ---------------------------- ---------------------------------
<S> <C>
Large Capitalization Fund* Large Cap Ultra Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
U.S. Government Income Fund* U.S. Government Income Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Mid Capitalization Fund* Mid Cap Growth Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Michigan Municipal Bond Fund* Michigan Municipal Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Treasury Fund* Treasury Plus Money Market Fund
Investor A Shares A Shares
Institutional Shares I Shares
</TABLE>
- ---------------
* Denotes the surviving or continuing portfolio for purposes of maintaining the
financial statements and performance history in the post-reorganization funds.
Parkstone may liquidate a limited number of holdings of certain of the
Reorganizing Funds in light of the investment policies of Armada and the
strategies of its investment adviser. The transaction costs that will result
from such sales are expected to be minimal.
The Reorganization Agreement provides that Parkstone will declare a dividend or
dividends prior to the Reorganizing Funds Transaction which, together with all
previous dividends, will have the effect of distributing to the Shareholders of
each of the Reorganizing Funds all undistributed ordinary income earned and net
capital gains realized up to and including the Effective Time of the
Reorganization.
Following the transfers of assets and liabilities from the Parkstone Funds to
the Armada Funds, and the issuances of shares by the Armada Funds to the
Parkstone Funds, each of the Parkstone Funds will distribute the class of shares
of the Armada Funds pro rata to the holders of classes of shares of the
Parkstone Funds as described above in liquidation of the Parkstone Funds. Each
holder of a class of shares of a Parkstone Fund will receive an amount of the
corresponding class of shares of the corresponding Armada Fund of equal value,
plus the right to receive any declared and unpaid dividends or distributions.
Following the Reorganization, the registration of Parkstone as an investment
company under the 1940 Act will be terminated, and Parkstone will be terminated
under state law.
The stock transfer books of Parkstone will be permanently closed after the
Reorganization.
The Reorganization is subject to a number of conditions, including approval of
the Reorganization Agreement and the transactions contemplated thereby described
in this Combined Prospectus/Proxy Statement by the Shareholders of Parkstone;
the receipt of certain legal opinions described in the Reorganization Agreement;
the receipt of certain certificates from the parties concerning the continuing
accuracy of the representations and warranties in the Reorganization Agreement
and other matters; and the parties' performance in all material respects of
their agreements and undertakings in the Reorganization Agreement. Assuming
satisfaction of the conditions in the Reorganization Agreement, the Reorganizing
Funds Transaction is expected to occur on or after June 9, 2000 and the
Continuing Funds Transaction is expected to occur on or after June 10, 2000,
except that the reorganization with respect to the Parkstone Treasury Fund and
the Armada Treasury Plus Money Market Fund is expected to occur on or after June
16, 2000.
The expenses of Armada and of Parkstone incurred in connection with the
Reorganization will be borne equally by Armada and National City Bank of
Michigan/Illinois except that Armada shall bear any registration fees payable
under the Securities Act of 1933 and state "blue sky" laws.
13
<PAGE> 24
The Reorganization may be abandoned prior to its consummation by the mutual
consent of the parties to the Reorganization Agreement. The Reorganization
Agreement provides further that at any time prior to or (to the fullest extent
permitted by law) after approval of the Reorganization Agreement by the
Shareholders of Parkstone (a) the parties thereto may, by written agreement
approved by their respective Boards of Trustees or authorized officers, and with
or without the approval of their Shareholders, amend any of the provisions of
the Reorganization Agreement; and (b) either party may waive any breach by the
other party or the failure to satisfy any of the conditions to its obligations
with or without the approval of such party's shareholders.
In its consideration and approval of the Reorganization at meetings on November
19, 1998, May 11, 1999, July 20-21, 1999 and November 17, 1999, the Board of
Trustees of Parkstone considered, primarily, the March 1998 merger between First
of America Bank Corporation, the parent company of First of America, and
National City Corporation, the parent corporation of National City. IMC and
National City have recommended that each of the Parkstone Funds be reorganized
as described in this Combined Prospectus/Proxy Statement. This Reorganization
presents the opportunity to combine the separate Parkstone and Armada mutual
fund families into a single, larger consolidated group, offering shareholders a
full spectrum of funds. The Board of Trustees of Parkstone considered the effect
of the recent merger of the bank holding companies on Parkstone; the
recommendation of IMC and National City with respect to the proposed
consolidation of Parkstone and Armada; the investment capabilities of IMC; the
compatibility of the investment objectives and policies of the Parkstone Funds
and their corresponding Armada Funds; the improvement of operational
efficiencies and possible achievement of economies of scale through the
consolidation of investment portfolios that are substantially similar; the fee
structures of the Armada Funds; the historical and projected expense ratios of
the Armada Funds as compared to those of the Parkstone Funds; the comparative
investment performance of the Parkstone Funds and their corresponding Armada
Funds; the fact that the Reorganization would constitute a tax-free
reorganization; and that the interests of Shareholders would not be diluted as a
result of the Reorganization.
After consideration of all of the foregoing factors, together with certain other
factors and information considered to be relevant, Parkstone's Trustees
unanimously approved the Reorganization Agreement and directed that it be
submitted to Shareholders for approval.
PARKSTONE'S BOARD OF TRUSTEES RECOMMENDS THAT SHAREHOLDERS VOTE "FOR" APPROVAL
OF THE REORGANIZATION AGREEMENT.
The Parkstone Board of Trustees has not determined what action it will take in
the event the Shareholders of any Parkstone Fund fail to approve the
Reorganization Agreement or for any reason the Reorganization is not
consummated. In either such event, the Trustees may choose to continue
operations of the Parkstone Funds in their present form, or to consider
alternative dispositions of Parkstone's assets, including the sales of assets
to, or merger with, another investment company, or the possible liquidation of
any of its Funds.
At the meetings referenced above, the Armada Board of Trustees considered the
proposed Reorganization. Based upon their evaluation of the relevant information
provided to them, and in light of their fiduciary duties under federal and state
law, the Board of Trustees unanimously determined that the proposed
Reorganization was in the best interests of Armada and its shareholders and that
the interests of existing shareholders of Armada would not be diluted as a
result of effecting the transaction.
CAPITALIZATION. Because the Reorganizing Funds will be combined in the
Reorganization with the Existing Armada Funds, the total capitalization of each
of the Existing Armada Funds after the Reorganization is expected to be greater
than the current capitalization of the corresponding Reorganizing Funds. In
addition, because the Continuing Funds will be combined in the Reorganization
with the newly organized New Armada Funds, which have only nominal assets and
liabilities, information on the capitalization of the Continuing Funds and New
Armada Funds is not included. The following table sets forth, as of September
30, 1999 (unaudited):
(i) the capitalization of each of the Reorganizing Funds and each of the
Existing Armada Funds; and
(ii) the pro forma capitalization of each of the Existing Armada Funds as
adjusted to give effect to the Reorganization.
If consummated, the capitalization of each Fund is likely to be different at the
Effective Time of the Reorganization as a result of daily share purchase and
redemption activity in the Funds.
14
<PAGE> 25
<TABLE>
<CAPTION>
PARKSTONE PRIME ARMADA
OBLIGATIONS MONEY MARKET PRO FORMA
FUND FUND COMBINED
--------------- -------------- --------------
<S> <C> <C> <C>
Total Net Assets............................................ $579,310,613 $3,643,501,879 $4,222,812,492
Investor A/A Shares....................................... $18,179,381 $1,520,372,403 $1,538,551,784
Investor B/B Shares....................................... $715,463 $784,832 $1,500,295
Institutional/I Shares.................................... $560,415,769 $2,122,344,644 $2,682,760,413
Shares Outstanding
Investor A/A Shares....................................... 18,173,637 1,520,216,250 1,538,389,887
Investor B/B Shares....................................... 715,031 784,786 1,499,817
Institutional/I Shares.................................... 560,414,815 2,122,550,222 2,682,965,037
------------ -------------- --------------
Net Asset Value Per Share
Investor A/A Shares....................................... $1.00 $1.00 $1.00
Investor B/B Shares....................................... $1.00 $1.00 $1.00
Institutional/I Shares.................................... $1.00 $1.00 $1.00
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE
U.S. GOVERNMENT ARMADA
OBLIGATIONS GOVERNMENT PRO FORMA
FUND MONEY MARKET FUND COMBINED
--------------- ----------------- --------------
<S> <C> <C> <C>
Total Net Assets.......................................... $118,534,510 $1,727,638,006 $1,846,172,516
Investor A/A Shares..................................... $700,600 $581,699,898 $582,400,498
Institutional/I Shares.................................. $117,833,910 $1,145,938,108 $1,263,772,018
Shares Outstanding
Investor A/A Shares..................................... 697,932 581,700,729 582,398,661
Institutional/I Shares.................................. 117,802,773 1,145,937,148 1,263,739,921
------------ -------------- --------------
Net Asset Value Per Share
Investor A/A Shares..................................... $1.00 $1.00 $1.00
Institutional/I Shares.................................. $1.00 $1.00 $1.00
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE ARMADA
TAX-FREE TAX EXEMPT PRO FORMA
FUND MONEY MARKET FUND COMBINED
----------- ----------------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $85,639,359 $574,549,532 $660,188,891
Investor A/A Shares....................................... $979,991 $183,749,891 $184,729,882
Institutional/I Shares.................................... $84,659,368 $390,799,641 $475,459,009
Shares Outstanding
Investor A/A Shares....................................... 978,312 183,832,722 184,811,034
Institutional/I Shares.................................... 84,653,628 390,959,055 475,612,683
----------- ------------ ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $1.00 $1.00 $1.00
Institutional/I Shares.................................... $1.00 $1.00 $1.00
</TABLE>
15
<PAGE> 26
<TABLE>
<CAPTION>
PARKSTONE ARMADA PRO FORMA
BOND FUND BOND FUND COMBINED
------------ ------------ --------------
<S> <C> <C> <C>
Total Net Assets............................................ $356,225,032 $722,854,546 $1,079,079,578
Investor A/A Shares....................................... $8,989,401 $3,460,578 $12,449,979
Investor B/B Shares....................................... $3,572,317 $718,242 $4,290,559
Institutional/I Shares.................................... $343,663,314 $718,675,726 $1,062,339,040
Shares Outstanding
Investor A/A Shares....................................... 945,361 353,404 1,271,727
Investor B/B Shares....................................... 375,067 73,467 438,563
Institutional/I Shares.................................... 35,948,285 73,568,996 108,744,595
------------ ------------ --------------
Net Asset Value Per Share
Investor A/A Shares....................................... $9.51 $9.79 $9.51
Investor B/B Shares....................................... $9.52 $9.78 $9.52
Institutional/I Shares.................................... $9.56 $9.77 $9.56
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE ARMADA
LIMITED LIMITED
MATURITY MATURITY PRO FORMA
BOND FUND BOND FUND COMBINED
------------ ----------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $132,722,757 $81,232,988 $213,955,745
Investor A/A Shares....................................... $17,748,784 $510,466 $18,259,250
Investor B/B Shares....................................... $850,242 $79,049 $929,291
Institutional/I Shares.................................... $114,123,731 $80,643,473 $194,767,204
Shares Outstanding
Investor A/A Shares....................................... 1,892,958 51,379 1,837,691
Investor B/B Shares....................................... 90,672 7,956 93,520
Institutional/I Shares.................................... 12,170,986 8,142,565 19,674,267
------------ ----------- ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $9.38 $9.94 $9.94
Investor B/B Shares....................................... $9.38 $9.94 $9.94
Institutional/I Shares.................................... $9.38 $9.90 $9.90
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE
INTERMEDIATE ARMADA
GOVERNMENT INTERMEDIATE PRO FORMA
OBLIGATIONS FUND BOND FUND COMBINED
---------------- ------------ ------------
<S> <C> <C> <C>
Total Net Assets............................................ $129,968,397 $308,975,753 $438,944,150
Investor A/A Shares....................................... $8,463,328 $5,526,548 $13,989,876
Investor B/B Shares....................................... $1,129,756 $540,870 $1,670,626
Institutional/I Shares.................................... $120,375,313 $302,908,335 $423,283,648
Shares Outstanding
Investor A/A Shares....................................... 874,925 536,303 1,357,713
Investor B/B Shares....................................... 117,097 52,479 162,080
Institutional/I Shares.................................... 12,445,252 29,448,822 41,144,214
------------ ------------ ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $9.67 $10.30 $10.30
Investor B/B Shares....................................... $9.65 $10.31 $10.31
Institutional/I Shares.................................... $9.67 $10.29 $10.29
</TABLE>
16
<PAGE> 27
<TABLE>
<CAPTION>
PARKSTONE EQUITY ARMADA EQUITY PRO FORMA
INCOME FUND INCOME FUND COMBINED
---------------- ------------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $274,880,264 $525,437,793 $800,318,057
Investor A/A Shares....................................... $66,716,057 $11,871,245 $78,587,302
Investor B/B Shares....................................... $18,910,777 $1,132,261 $20,043,038
Institutional/I Shares.................................... $189,253,430 $512,434,287 $701,687,717
Shares Outstanding
Investor A/A Shares....................................... 4,009,100 685,500 4,537,199
Investor B/B Shares....................................... 1,146,313 65,727 1,163,473
Institutional/I Shares.................................... 11,434,396 29,562,555 40,482,304
------------ ------------ ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $16.64 $17.32 $17.32
Investor B/B Shares....................................... $16.50 $17.23 $17.23
Institutional/I Shares.................................... $16.55 $17.33 $17.33
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE SMALL ARMADA
CAPITALIZATION SMALL CAP PRO FORMA
FUND GROWTH FUND COMBINED
--------------- ----------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $280,735,617 $96,282,646 $377,018,263
Investor A/A Shares....................................... $49,732,433 $1,519,948 $51,252,381
Investor B/B Shares....................................... $17,485,687 $185,352 $17,671,039
Institutional/I Shares.................................... $213,517,497 $94,577,346 $308,094,843
Shares Outstanding
Investor A/A Shares....................................... 2,391,541 134,523 4,536,652
Investor B/B Shares....................................... 876,822 16,599 1,581,848
Institutional/I Shares.................................... 10,045,790 8,332,227 27,140,474
------------ ----------- ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $20.80 $11.30 $11.30
Investor B/B Shares....................................... $19.94 $11.17 $11.17
Institutional/I Shares.................................... $21.25 $11.35 $11.35
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE ARMADA
INTERNATIONAL INTERNATIONAL PRO FORMA
DISCOVERY FUND EQUITY FUND COMBINED
-------------- ------------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $306,562,812 $250,837,223 $557,400,035
Investor A/A Shares....................................... $22,918,730 $1,612,394 $24,531,124
Investor B/B Shares....................................... $7,430,526 $80,268 $7,510,794
Institutional/I Shares.................................... $276,213,556 $249,144,561 $525,358,117
Shares Outstanding
Investor A/A Shares....................................... 1,385,834 132,644 2,017,652
Investor B/B Shares....................................... 470,080 6,640 621,360
Institutional/I Shares.................................... 16,452,287 20,397,876 43,021,455
------------ ------------ ------------
Net Asset Value Per Share
Investor A/A Shares....................................... $16.54 $12.16 $12.16
Investor B/B Shares....................................... $15.81 $12.09 $12.09
Institutional/I Shares.................................... $16.79 $12.21 $12.21
</TABLE>
17
<PAGE> 28
<TABLE>
<CAPTION>
PARKSTONE ARMADA
BALANCED BALANCED PRO FORMA
ALLOCATION FUND ALLOCATION FUND COMBINED
---------------- --------------- ------------
<S> <C> <C> <C>
Total Net Assets............................................ $172,243,993 $73,067,480 $245,311,473
Investor A/A Shares....................................... $14,228,164 $2,535,254 $16,763,418
Investor B/B Shares....................................... $5,297,951 $401,222 $5,699,173
Institutional/I Shares.................................... $152,717,878 $70,131,004 $222,848,882
Shares Outstanding Investor A/A Shares...................... 1,023,366 246,542 1,630,276
Investor B/B Shares....................................... 381,072 38,953 553,215
Institutional/I Shares.................................... 10,996,718 6,817,089 21,661,055
------------ ----------- ------------
Net Asset Value Per Share Investor A/A Shares............... $13.90 $10.28 $10.28
Investor B/B Shares....................................... $13.90 $10.30 $10.30
Institutional/I Shares.................................... $13.89 $10.29 $10.29
</TABLE>
<TABLE>
<CAPTION>
PARKSTONE ARMADA
NATIONAL TAX EXEMPT NATIONAL PRO FORMA
BOND FUND TAX EXEMPT BOND FUND COMBINED
-------------------- -------------------- ------------
<S> <C> <C> <C>
Total Net Assets..................................... $93,745,094 $100,524,710 $194,269,804
Investor A/A Shares................................ $5,640,226 $4,573,311 $10,213,537
Investor B/B Shares................................ $478,887 $295,415 $774,302
Institutional/I Shares............................. $87,625,981 $95,655,984 $183,281,965
Shares Outstanding
Investor A/A Shares................................ 556,041 470,887 1,051,552
Investor B/B Shares................................ 47,340 30,445 79,835
Institutional/I Shares............................. 8,637,291 9,856,471 18,894,461
----------- ------------ ------------
Net Asset Value Per Share
Investor A/A Shares................................ $10.14 $9.71 $9.71
Investor B/B Shares................................ $10.12 $9.70 $9.70
Institutional/I Shares............................. $10.15 $9.70 $9.70
</TABLE>
FEDERAL INCOME TAX CONSEQUENCES. Consummation of the Reorganization is subject
to the condition that Armada receive an opinion from Drinker Biddle & Reath LLP
addressed to both Armada and Parkstone in form reasonably satisfactory to them
to the effect that for federal income tax purposes:
(i) the transfer of all of the assets and liabilities of each of the
Reorganizing Funds (except in each case for a cash reserve in an amount
necessary for the discharge of all known and reasonably anticipated
liabilities of each of the Reorganizing Funds) and each of the
Continuing Funds to the corresponding Armada Fund in exchange for
shares of the corresponding Armada Fund and liquidating distributions
to Shareholders of the Parkstone Funds of the shares of the Armada Fund
so received, as described in the Reorganization Agreement, will
constitute reorganizations within the meaning of Sections 368(a)(1)(C),
368(a)(1)(D) or 368(a)(1)(F) of the Internal Revenue Code of 1986, as
amended, (the "Code") and with respect to the Reorganization, each
Parkstone Fund and Armada Fund will be considered "a party to a
reorganization" within the meaning of Section 368(b) of the Code;
(ii) no gain or loss will be recognized by the Parkstone Funds as a result
of such transactions;
(iii) no gain or loss will be recognized by the Armada Funds as a result of
such transactions;
(iv) no gain or loss will be recognized by the Shareholders of any
Parkstone Fund on the distribution to them by Parkstone of shares of
any class of the corresponding Armada Fund in exchange for their
shares of any class of the Parkstone Fund;
(v) the aggregate basis of the Armada Fund shares received by a Shareholder
of a Parkstone Fund will be the same as the aggregate basis of the
Shareholder's Parkstone Fund shares immediately prior to the
Reorganization;
(vi) the basis of each Armada Fund in the assets of the corresponding
Parkstone Fund received pursuant to the Reorganization will be the
same as the basis of the assets in the hands of the Parkstone Fund
immediately before the Reorganization;
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(vii) a shareholder's holding period for Armada Fund shares will be
determined by including the period for which the shareholder held the
Parkstone Fund shares exchanged therefor, provided that the
shareholder held such Parkstone Fund shares as a capital asset; and
(viii) each Armada Fund's holding period with respect to the assets
received in the Reorganization will include the period for which
such assets were held by the corresponding Parkstone Fund.
Armada and Parkstone have not sought a tax ruling from the Internal Revenue
Service ("IRS"), but are acting in reliance upon the opinion of counsel
discussed in the previous paragraph. That opinion is not binding on the IRS and
does not preclude the IRS from adopting a contrary position. Shareholders should
consult their own advisers concerning the potential tax consequences to them,
including state and local income taxes.
COMPARISON OF INVESTMENT POLICIES AND RISK FACTORS
The investment objectives and policies of the Reorganizing Funds are, in many
respects, similar to those of the corresponding Existing Armada Funds. There
are, however, certain differences. The investment objective of each of the
Existing Armada Funds and the Reorganizing Funds, with the exception of the
Parkstone U.S. Government Obligations and Treasury Funds, is non-fundamental,
meaning that it may be changed without a vote of the holders of a majority of
the Fund's outstanding shares, as defined by the 1940 Act. The investment
objectives of the Parkstone U.S. Government Obligations and Treasury Funds are
fundamental. Additionally, the investment policies of the Reorganizing Funds and
the Existing Armada Funds are, with the exception of the Armada Tax Exempt Money
Market Fund, not fundamental and may be changed by the respective Boards of
Trustees.
The following discussion summarizes some of the more significant similarities
and differences in the investment policies and risk factors of the Reorganizing
Funds and corresponding Existing Armada Funds and is qualified in its entirety
by the discussion elsewhere herein, and in the Prospectuses and Statements of
Additional Information of the Reorganizing Funds and the Existing Armada Funds
incorporated herein by reference.
PARKSTONE PRIME OBLIGATIONS FUND AND ARMADA MONEY MARKET FUND.
Each Fund is a money market fund that seeks to maintain a net asset value of
$1.00 per share, although there is no assurance either will be able to do so.
Both the Parkstone Prime Obligations Fund and Armada Money Market Fund may
invest in a broad range of U.S. dollar-denominated, high quality, short-term
instruments, including government obligations, commercial paper, bank
obligations, guaranteed investment contracts, repurchase agreements and reverse
repurchase agreements.
Both Funds will only purchase "eligible securities" that present minimal credit
risks as determined by its adviser pursuant to guidelines established by their
Boards of Trustees. Eligible securities generally include U.S. government
obligations and other high-quality money market instruments, including municipal
securities and other instruments deemed to be of comparable high quality as
determined by the Boards of Trustees. These securities will have short-term debt
ratings in the two highest rating categories of at least two nationally
recognized statistical rating organizations, or will be unrated securities of
comparable quality. In addition, the Parkstone Prime Obligations Fund
diversifies its investments so that, except for United States government
securities and certain other exceptions, not more than 5% of its total assets is
invested in securities of all issuers, not more than 5% of its total assets is
invested in the securities of any one issuer, not more than 5% of its total
assets is invested in securities of all issuers rated by a Rating Agency at the
time of investment in the second highest rating category for short-term debt
obligations or deemed to be of comparable quality to securities rated in the
second highest rating category for short-term debt obligations ("Second Tier
Securities") and not more than the greater of 1% of total assets or $1 million
is invested in the Second Tier Securities of one issuer. Each Fund's assets have
remaining maturities of 397 calendar days or less (except for certain variable
and floating rate instruments and securities underlying certain repurchase
agreements) as defined by the SEC and each Fund's dollar-weighted average
portfolio maturity may not exceed 90 days.
Both Funds may invest in U.S. dollar denominated bank obligations of foreign and
domestic banks such as certificates of deposit, time deposits, bankers'
acceptances, Eurodollar Certificates of Deposit, Eurodollar Time Deposits,
Canadian Time Deposits and Yankee Certificates of Deposit. Both Funds may invest
in Canadian Commercial Paper and Europaper, which is U.S. dollar denominated
commercial paper of a foreign issuer. With respect to the Armada Money Market
Fund, investments in bank obligations are limited to the obligations of
financial institutions having more than $1 billion in total assets at the time
of purchase.
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There are some differences between the Funds. The Armada Money Market Fund may
invest in zero coupon securities. These securities may exhibit greater price
volatility than ordinary debt securities because of the manner in which their
principal and interest are returned to investors.
PARKSTONE U.S. GOVERNMENT OBLIGATIONS FUND AND ARMADA GOVERNMENT MONEY MARKET
FUND.
Each Fund is a money market fund that seeks to maintain a net asset value of
$1.00 per share, although there is no assurance either will be able to do so.
Both Funds invest in obligations issued or guaranteed as to payment of principal
and interest by the U.S. Government, its agencies or instrumentalities, and
repurchase agreements issued by financial institutions such as banks and
broker-dealers.
The Parkstone U.S. Government Obligations Fund diversifies its investments so
that, except for United States government securities and certain other
exceptions, not more than 5% of its total assets is invested in Second Tier
Securities and not more than 1% of total assets or $1 million is invested in the
Second Tier Securities of one issuer.
A difference between the Funds is that Parkstone U.S. Government Obligations
Fund is permitted to invest up to 35% of the value of its total assets in high
quality money market instruments, including Municipal Securities, bankers'
acceptances, certificates of deposit, time deposits, and other instruments
deemed to be of comparable high quality as determined by Parkstone's Board of
Trustees although it has not been the practice of the Adviser to do so. Armada
Government Money Market is not expressly permitted to invest in these
securities.
PARKSTONE TAX-FREE FUND AND ARMADA TAX EXEMPT MONEY MARKET FUND.
Each Fund is a money market fund that seeks to maintain a net asset value of
$1.00 per share, although there is no assurance they will be able to do so. Both
Funds invest at least 80% of their assets in Municipal Securities rated in the
two highest short-term rating categories by a Rating Agency, or, if unrated, are
determined to be of comparable quality. This 80% requirement is a fundamental
policy of the Armada Tax Exempt Money Market Fund.
Both Funds may invest in the same types of Municipal Securities. Both may invest
in securities issued or guaranteed by the U.S. government, its agencies and
instrumentalities. Both may purchase securities on a when-issued or delayed
delivery basis.
There are some differences between the Funds. Parkstone Tax-Free Fund is
permitted to invest up to 20% of its total assets in taxable obligations for
temporary defensive purposes or when sufficient tax-exempt securities are not
available, may enter into repurchase agreements and reverse repurchase
agreements, and may lend its portfolio securities. Parkstone Tax-Free Fund is
also permitted to invest up to 20% of its assets the interest on which is
treated as a preference item for purposes of the federal alternative minimum
tax. Armada Tax Exempt Money Market Fund may enter into repurchase agreements
and reverse repurchase agreements, but is not expressly permitted to lend its
portfolio securities.
PARKSTONE BOND FUND AND ARMADA BOND FUND.
The investment policies of these Funds are similar. Both Funds invest at least
80% of the value of their total assets in bonds, debentures and certain other
debt securities. Both Funds invest only in investment grade fixed income
securities (i.e., securities rated in the four highest rating categories by a
Rating Agency), or if unrated, are determined by each Fund's adviser to be of
comparable quality. Parkstone Bond Fund may invest up to 25% of its net assets
in foreign securities, either directly or through the purchase of American
Depository Receipts. Armada Bond Fund is not expressly permitted to invest in
foreign securities.
Both Funds invest in the same types of debt securities, including debt
securities of corporations, securities issued or guaranteed by the U.S.
government, its agencies and instrumentalities, mortgage-backed securities and
asset-backed securities. Both Funds may invest a portion of their assets in the
same types of short-term obligations. Each may engage in interest rate and bond
index futures contracts and options on futures contracts.
PARKSTONE LIMITED MATURITY BOND FUND AND ARMADA LIMITED MATURITY BOND FUND.
It is expected that the Armada Enhanced Income Fund will change its name to
Armada Limited Maturity Bond Fund on or about the time of the Reorganization.
The investment policies of these Funds are similar. Both Funds invest at least
80% of their total assets in investment grade debt securities of all types,
including debt securities of corporations, obligations issued or guaranteed by
the U.S. government, its agencies or instrumentalities, asset-backed securities,
mortgage-backed securities and Municipal Securities. In
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addition, each may invest up to 20% of total assets in other securities,
including preferred stocks. Both Funds may invest a portion of their assets in
the same types of short-term obligations. Both Funds may invest in foreign
securities either directly or through the purchase of American Depository
Receipts. Parkstone Limited Maturity Bond Fund may only invest 25% of its net
assets in foreign securities, Canadian Commercial Paper and Europaper. Armada
Limited Maturity Bond Fund has no limitation on investing in foreign securities.
Both Funds may invest in interest rate and bond index futures and options on
futures contracts, and may engage in forward currency exchange contracts. Both
Funds intend to maintain a dollar-weighted average maturity of 1 to 5 years.
There are some differences. Parkstone Limited Maturity Bond Fund is permitted to
invest in bank obligations, including bankers' acceptances, certificates of
deposit and time deposits. Armada Limited Maturity Bond Fund is not expressly
permitted to invest in these securities.
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND AND ARMADA INTERMEDIATE BOND
FUND.
These Funds have similar, but not identical, investment policies. The principal
difference is that Parkstone Intermediate Government Obligations Fund invests
80% of its total assets in obligations issued or guaranteed by the U.S.
government, its agencies or instrumentalities. Armada Intermediate Bond Fund is
permitted to invest 80% of its total assets in debt securities of all types, not
just obligations issued or guaranteed by the U.S. government, its agencies or
instrumentalities, and 20% of the value of its total assets may be invested in
preferred stocks and other investments. These debt securities include: equipment
lease and trust certificates; corporate issues; collateralized mortgage
obligations; state, municipal and private activity bonds; obligations issued or
guaranteed by the U.S. government, its agencies or instrumentalities; securities
of supranational organizations such as the World Bank; participation
certificates in pools of mortgages, including mortgages issued or guaranteed by
the U.S. government, its agencies or instrumentalities; asset-backed securities
such as mortgage backed securities, Certificates of Automobile Receivables and
Certificates of Amortizing Revolving Debts; private placements; and income
participation loans. These securities may be subject to greater volatility than
U.S. Government obligations. Accordingly, the Armada Intermediate Bond Fund may
be more volatile than the Parkstone Intermediate Government Obligations Fund.
Under normal market conditions, both Funds expect to maintain a dollar-weighted
average portfolio maturity of three to ten years. Both Funds may invest in
mortgage-related securities. Parkstone Intermediate Government Obligations Fund
may purchase mortgage-backed securities rated in the three highest rating
categories by a Rating Agency, whereas Armada Intermediate Bond Fund may
purchase corporate debt securities, mortgage-backed securities and commercial
paper in the four highest rating categories. Both Funds may invest a portion of
their assets in the same types of short-term obligations, except that Armada
Intermediate Bond Fund may also invest in guaranteed investment contracts. The
Armada Intermediate Bond Fund may invest in foreign securities whereas Parkstone
Intermediate Government Obligations Fund may not. The Armada Intermediate Bond
Fund may invest in variable and floating rate instruments, which are unsecured
instruments that permit the indebtedness thereunder to vary and provide for
periodic adjustments in the interest rates, whereas the Parkstone Intermediate
Government Obligations Fund may not. Both Funds are permitted to invest in
repurchase agreements, however, the Parkstone Intermediate Government
Obligations Fund is also permitted to invest in reverse repurchase agreements,
while the Armada Intermediate Bond Fund may not.
PARKSTONE EQUITY INCOME FUND AND ARMADA EQUITY INCOME FUND.
The investment policies of the Funds are similar. Both Funds invest at least 80%
of their total assets in income producing common stocks and securities
convertible into common stock. Both Funds invest portions of their assets in the
same types of short-term obligations except that Armada Equity Income Fund may
also invest in guaranteed investment contracts. Both Funds may invest in stock
index futures contracts and options on futures contracts. Both may purchase put
and call options and write covered call options for hedging purposes. With
respect to the Armada Equity Income Fund, such options must be listed on a
national securities exchange or board of trade. Parkstone Equity Income Fund is
not subject to such a limitation. The aggregate value of securities subject to
options can not exceed 50% of Parkstone Equity Income Fund's net assets or 25%
of Armada Equity Income Fund's net assets. Both Funds may invest in foreign
securities, including American Depository Receipts, European Depository Receipts
and Standard & Poor's Depository Receipts. Armada Equity Income Fund may invest
up to 20% of its total assets in foreign securities, whereas Parkstone Equity
Income Fund may invest up to 25% of its net assets in such securities. Both
Funds may engage in foreign currency transactions. The Parkstone Equity Income
Fund may invest in bank obligations and commercial paper, while the Armada
Equity Income Fund may not.
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PARKSTONE SMALL CAPITALIZATION FUND AND ARMADA SMALL CAP GROWTH FUND.
The investment policies of both Funds are similar. Both Funds intend to invest
at least 80% of their total assets in equity securities of companies with small
stock market capitalization. Both Funds consider a "small capitalization"
company to be one that has the same market capitalization as the companies in
the Russell 2000 Growth Index.
Both Funds may invest portions of their assets in the same types of short-term
obligations, including commercial paper (including variable amount master demand
notes), bankers' acceptances, certificates of deposit, repurchase agreements,
obligations issued or guaranteed by the U.S. government or its agencies or
instrumentalities, and demand and time deposits of domestic and foreign banks
and savings and loan associations, except that Armada Small Cap Growth Fund may
also invest in guaranteed investment contracts. Both Funds may invest in stock
index futures contracts and options on futures contracts. Both Funds may
purchase put and call options and write covered call options for hedging
purposes. With respect to Armada Small Cap Growth Fund, such options must be
listed on a national securities exchange or board of trade. Parkstone Small
Capitalization Fund is not subject to such a limitation. The aggregate value of
securities subject to options will not exceed 50% of Parkstone Small
Capitalization Fund's net assets or 25% of Armada Small Cap Growth Fund's net
assets. Both Funds may invest in securities of foreign issuers, including
American Depository Receipts and European Depository Receipts. Armada Small Cap
Growth may also invest in Standard & Poor's Depository Receipts. Armada Small
Cap Growth Fund may invest up to 20% of its total assets in the securities of
foreign issuers, whereas Parkstone Small Capitalization Fund may invest up to
25% of its net assets in such securities. Parkstone Small Capitalization Fund is
permitted to enter into foreign currency futures contracts. Armada Small Cap
Growth Fund is not permitted to engage in foreign currency futures contracts.
The Parkstone Small Capitalization Fund may invest in bank obligations and
commercial paper, while the Armada Small Cap Growth Fund may not.
PARKSTONE INTERNATIONAL DISCOVERY FUND AND ARMADA INTERNATIONAL EQUITY FUND.
The investment policies of both Funds are very similar. Parkstone International
Discovery Fund and the Armada International Equity Fund each seek to achieve
their investment objective by investing, under normal market conditions, at
least 80% of their total assets in equity securities of foreign issuers. Both
Funds' assets normally will be invested in the securities of issuers located in
at least three foreign countries. It is not anticipated that the Parkstone
International Discovery Fund or the Armada International Equity Fund will invest
in the common stock of U.S. companies.
Both Funds will invest primarily in equity securities, including common and
preferred stocks, rights, warrants, securities convertible into common stocks,
American Depository Receipts and European Depository Receipts. Foreign
investments by both Funds may include debt obligations issued or guaranteed by
foreign governments or their agencies, authorities, instrumentalities, or
political sub-divisions, including a foreign state, province or municipality.
Both Funds focus their investments in equity securities of companies that are
included in the Morgan Stanley Capital International Europe, Australasia, Far
East ("EAFE") Index, a broadly diversified international index consisting of
more than 1,000 equity securities of companies located in the above-referenced
countries.
More than 25% of each Fund's total assets may be invested in the securities of
issuers located in the same country. Investment in a particular country of 25%
or more of the Fund's total assets will make the Fund's performance more
dependent upon the political and economic circumstances of that country than a
mutual fund more widely diversified among issuers in different countries.
Both Funds may invest in stock index futures contracts and options on futures.
Both Funds may also invest in foreign currency futures contracts. Both Funds may
purchase put and call options and write covered calls for hedging purposes. Such
options may relate to particular securities, stock or bond indices, financial
instruments or foreign currencies. With respect to the Armada International
Equity Fund, such options must be listed on a national securities exchange or
board of trade. The Parkstone International Discovery Fund is not subject to
such a limitation. The aggregate value of the securities subject to options will
not exceed 50% of Parkstone International Discovery Fund's net assets or 25% of
Armada International Equity Fund's net assets.
The Armada International Equity Fund may also purchase shares of investment
companies investing primarily in foreign securities, including "country funds"
which have portfolios consisting exclusively of securities of issuers located in
one foreign country. Such "country funds" may be either open-end or closed-end
investment companies. Parkstone International Discovery Fund may only invest in
other investment companies which are money market mutual funds.
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The Armada International Equity Fund may also purchase World Equity Benchmark
Shares issued by The Foreign Fund, Inc. ("WEBS") and similar securities of other
issuers. WEBS are shares of an investment company that invests substantially all
of its assets in securities included in the Morgan Stanley Capital International
indices for specific countries.
Because the expense associated with an investment in WEBS can be substantially
lower than the expense of small investments directly in the securities
comprising the indices it seeks to track, the adviser believes that investment
in WEBS of countries that are included in the EAFE Index can provide a
cost-effective means of diversifying the Fund's assets across a broader range of
equity securities.
WEBS are listed on the American Stock Exchange ("AMEX"), and were initially
offered to the public in 1996. The market prices of WEBS are expected to
fluctuate in accordance with both changes in the net assets value of their
underlying indices and supply and demand of WEBS under AMEX. To date, WEBS have
traded at relatively modest discounts and premiums to their net asset value.
However, WEBS have limited operating history, and information is lacking
regarding the actual performance and trading liquidity of WEBS for extended
periods or over complete market periods. In addition, there is no assurance that
the requirements of AMEX necessary to maintain the listing of WEBS will continue
to be met or will remain unchanged.
In the event substantial market or other disruptions effecting WEBS would occur
in the future, the liquidity and value of the Armada International Equity Fund's
shares could also be substantially and adversely affected, and the Fund's
ability to provide investment results approximating the performance of
securities in the EAFE could be impaired. If such disruptions were to occur, the
Fund could be required to reconsider the use of WEBS or other "Country Funds" as
part of its investment strategy. The Parkstone International Discovery Fund may
not invest in WEBS.
PARKSTONE BALANCED ALLOCATION FUND AND ARMADA BALANCED ALLOCATION FUND.
The investment policies of these two Funds are substantially the same. Each may
invest in any type or class of security. Both intend to invest 50% to 70% of
their net assets in common stocks and securities convertible to common stocks,
25% to 55% of their net assets in fixed income securities and up to 30% of their
net assets in cash and cash equivalents. Both Funds may invest a portion of
their assets in the same types of short-term obligations. Each may invest up to
20% of its net assets in foreign securities, including American Depository
Receipts, European Depository Receipts and Global Depository Receipts. Both may
engage in foreign currency exchange contracts. Both may invest in futures
contracts and options on futures contracts. Both may purchase put and call
options and write covered calls for hedging purposes. Armada Balanced Allocation
Fund is limited to options listed on a national securities exchange or board of
trade. Parkstone Balanced Allocation Fund is not subject to such a limitation.
The aggregate value of the securities subject to options will not exceed 50% of
Parkstone Balanced Allocation Fund's net assets or 25% of Armada Balanced
Allocation Fund's net assets. The excess, if any, of the Fund's obligations over
its entitlements with respect to each swap will be accrued on a daily basis and
an amount of liquid assets, such as cash, U.S. government securities or other
liquid high grade debt securities, having an aggregate net asset value at least
equal to such accrued excess will be maintained in a segregated account by the
Fund's custodian. The Armada Balanced Allocation Fund will not enter into any
swap unless the unsecured commercial paper, senior debt, or claims paying
ability of the other party is rated in the two highest rating categories by a
Rating Agency, or the claims paying ability of the other party is deemed
creditworthy and any such obligation the Armada Balanced Allocation Fund may
have under such an arrangement will be covered by setting aside liquid high
grade securities in a segregated account.
The Armada Balanced Allocation Fund may engage in short sales of its securities.
Selling securities short involves selling securities the seller does not own
(but has borrowed) in anticipation of a decline in the market price of such
securities. To deliver the securities to the buyer, the seller must arrange
through a broker to borrow the securities and, in so doing, the seller becomes
obligated to replace the securities borrowed at their market price at the time
of replacement. This price may be more or less than the price at which the
security was sold by the fund. In a short sale, the proceeds the seller receives
from the sale are retained by a broker until the seller replaces the borrowed
securities. The seller may have to pay a premium to borrow the securities and
must pay any dividends or interest payable on the securities until they are
replaced. Up to 20% of the assets of the Armada Balanced Allocation Fund may be
subject to short sales.
PARKSTONE NATIONAL TAX EXEMPT BOND FUND AND ARMADA NATIONAL TAX EXEMPT BOND
FUND.
The investment policies of these two Funds are similar. Each invests, under
normal market conditions, at least 80% of its total assets in Municipal
Securities. This 80% requirement is a fundamental policy of the Armada National
Tax Exempt Bond Fund. Both Funds may invest in the same types of Municipal
Securities. Both are permitted to invest in taxable
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obligations for temporary defensive purposes or if suitable tax exempt
securities are not available. Both Funds expect to maintain a dollar-weighted
average portfolio maturity of three to ten years.
INVESTMENT POLICIES AND RISKS -- GENERAL
The investment objective of each of the Reorganizing Funds and each Existing
Armada Fund are non-fundamental, with the exception of the Parkstone U.S.
Government Obligations Fund. A non-fundamental investment objective may be
changed without a vote of the majority of the Fund's outstanding voting
securities, as defined by the 1940 Act. The investment objective of the
Parkstone U.S. Government Obligations Fund is fundamental. Additionally, the
investment policies of the Reorganizing Funds and the Existing Armada Funds are,
with the exception of the Armada Tax Exempt Money Market Fund, not fundamental
and may be changed by the respective Boards of Trustees.
This section describes certain policies and risks that are common to a number of
Reorganizing Funds and Existing Armada Funds.
Each Reorganizing Fund and each Existing Armada Fund is permitted to (i) enter
into repurchase agreements; and (ii) purchase obligations of the U.S.
Government, its agencies and instrumentalities.
There are similarities between the Funds with respect to the types of money
market instruments they are permitted to purchase. Each Reorganizing Fund and
each Existing Armada Fund may invest in a broad array of money market
instruments, all rated in one of the top two rating categories by a Rating
Agency.
Parkstone Limited Maturity Bond Fund and Armada Bond Fund, Limited Maturity Bond
Fund, Intermediate Bond Fund and Balanced Allocation Fund may invest in
asset-backed securities. These securities may be backed by either credit card
receivables or motor vehicle installment purchase obligations. Asset-backed
securities entail certain risks, including the risk that credit card receivables
are generally unsecured, and the debtors are entitled to the protection of a
number of state and federal consumer credit laws, many of which give such
debtors the right to set off certain amounts owned on the credit cards, thereby
reducing the balance due. Most issuers of asset-backed securities backed by
motor vehicle installment purchase obligations permit the servicer of such
receivable to retain possession of the underlying obligations. If the servicer
sells these obligations to another party, there is a risk that the purchaser
would acquire an interest superior to that of the holders of the related
asset-backed securities. Further, if a vehicle is registered in one state and is
then re-registered because the owner and obligor move to another state, such
re-registration could defeat the original security interest in the vehicle in
certain cases. In addition, because of the large number of vehicles involved in
a typical issuance and technical requirements under state laws, the trustee for
the holders of asset-backed securities backed by automobile receivables may not
have a proper security interest in all of the obligations backing such
receivables. Therefore, there is the possibility that recoveries on repossessed
collateral may not, in some cases, be available to support payments on these
securities.
Parkstone Bond Fund, Limited Maturity Bond Fund, U.S. Government Income Fund,
Intermediate Government Obligations Fund and Balanced Allocation Fund, and
Armada Bond Fund, Limited Maturity Bond Fund, U.S. Government Income Fund,
Intermediate Bond Fund and Balanced Allocation Fund may invest in
mortgage-backed securities. Mortgage-backed securities are fixed income
securities representing an interest in a pool of underlying mortgage loans. They
are sensitive to changes in interest rates, but may respond to these changes
differently from other fixed income securities due to the possibility of
prepayment of the underlying mortgage loans. As a result, it may not be possible
to determine in advance the actual maturity date or average life of a
mortgage-backed security. Rising interest rates tend to discourage refinancings,
with the result that the average life and volatility of the security will
increase exacerbating its decrease in market price. When interest rates fall,
however, mortgage-backed securities may not gain as much in market value because
of the expectation of additional mortgage prepayments that must be reinvested at
lower interest rates. Prepayment risk may make it difficult to calculate the
average maturity of a portfolio of mortgage-backed securities and, therefore, to
assess the volatility risk of that portfolio.
The Parkstone Prime Obligations Fund, U.S. Government Obligations Fund, Tax-Free
Fund, Bond Fund, Limited Maturity Bond Fund, U.S. Government Income Fund, Large
Capitalization Fund, Equity Income Fund, Mid Capitalization Fund, Small
Capitalization Fund, International Discovery Fund and Balanced Allocation Fund
and the Armada U.S. Government Income Fund, Limited Maturity Bond Fund,
Intermediate Bond Fund, Equity Income Fund, Mid Cap Growth Fund, Small Cap
Growth Fund, International Equity Fund and Balanced Allocation Fund may invest
in foreign securities. Investments in securities of foreign companies or
governments can be more volatile than investments in U.S. companies or
governments. Diplomatic, political, or economic developments, including
nationalization or appropriation, could affect investments in foreign countries.
Foreign securities markets generally have less trading volume and less liquidity
than U.S. markets. In
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addition, the value of securities denominated in foreign currencies, and of
dividends from such securities, can change significantly when foreign currencies
strengthen or weaken relative to the U.S. dollar. Foreign companies or
governments generally are not subject to uniform accounting, auditing, and
financial reporting standards comparable to those applicable to domestic U.S.
companies or governments. Transaction costs are generally higher than those in
the U.S. and expenses for custodial arrangements of foreign securities may be
somewhat greater than typical expenses for custodial arrangements of similar
U.S. securities. Investment in sovereign debt obligations by certain Funds
involves risks not present in debt obligations of corporate issuers. The issuer
of the debt or the governmental authorities that control the repayment of the
debt may be unable or unwilling to repay principal or interest when due in
accordance with the terms of such debt, and a Fund may have limited recourse to
compel payment in the event of a default. Periods of economic uncertainty may
result in volatility of market prices of sovereign debt, and in turn a Fund's
NAV, to a greater extent than the volatility inherent in debt obligations of
U.S. issuers. Some foreign governments levy withholding taxes against dividend
and interest income. Although in some countries a portion of these taxes are
recoverable, the non-recovered portion will reduce the income received from the
securities comprising the portfolio.
INVESTMENT LIMITATIONS
Neither the Reorganizing Funds nor the Existing Armada Funds may change their
fundamental investment limitations without the affirmative vote of the holders
of a majority of the outstanding shares (as defined in the 1940 Act) of the
particular Reorganizing Fund or Existing Armada Fund. The investment limitations
of the Reorganizing Funds and the Existing Armada Funds are very similar, but
not identical.
The investment limitations listed below are fundamental with respect to the
Reorganizing Funds and the Existing Armada Funds except as noted.
The Parkstone Bond Fund, Limited Maturity Bond Fund, National Tax Exempt Bond
Fund, Intermediate Government Obligations Fund, Equity Income Fund, Small
Capitalization Fund, International Discovery Fund and Balanced Allocation Fund
and the Armada Bond Fund, Limited Maturity Bond Fund, Intermediate Bond Fund,
Equity Income Fund, Small Cap Growth Fund, International Equity Fund, Balanced
Allocation Fund and National Tax Exempt Bond Fund may not:
Purchase securities of any one issuer, other than securities issued or
guaranteed by the U.S. government or its agencies or instrumentalities, if,
immediately after such purchase, more than 5% of the value of the Fund's
total assets would be invested in such issuer or the Fund would hold more
than 10% of any class of securities of the issuer or more than 10% of the
outstanding voting securities of the issuer, except that up to 25% of the
value of the Fund's total assets may be invested without regard to such
limitations.
The following investment restrictions apply to all Reorganizing Funds and all
Existing Armada Funds:
No Fund may:
1. Purchase any securities which would cause 25% or more of the value of
its total assets at the time of purchase to be invested in the
securities of one or more issuers conducting their principal business
activities in the same industry, provided that:
(a) there is no limitation with respect to obligations issued or
guaranteed by the U.S. government, any state, territory or
possession of the United States, the District of Columbia or any of
their authorities, agencies, instrumentalities or political
subdivisions, and repurchase agreements secured by such instruments,
or in the case of the Parkstone Prime Obligations Fund, U.S.
Government Obligations Fund and Tax-Free Fund, domestic bank
obligations and repurchase agreements secured by such obligations;
(b) wholly-owned finance companies will be considered to be in the
industries of their parents if their activities are primarily
related to financing the activities of the parents;
(c) utilities will be divided according to their services, for example,
gas, gas transmission, electric and gas, electric, and telephone
will each be considered a separate industry; and
(d) personal credit and business credit businesses will be considered
separate industries.
2. Make loans, except that the Fund may purchase and hold debt instruments
and enter into repurchase agreements in accordance with its investment
objective and policies and may lend portfolio securities in an amount
not exceeding one-third of its total assets.
25
<PAGE> 36
3. Borrow money, issue senior securities or mortgage, pledge or
hypothecate its assets except to the extent permitted under the 1940
Act.
4. Purchase or sell real estate, except that the fund may purchase
securities of issuers which deal in real estate and may purchase
securities which are secured by interests in real estate.
5. Invest in commodities, except that, as is consistent with its
investment objective and policies, a Fund may: (a) purchase and sell
options, forward contracts and futures contracts, including without
limitation those relating to indices; (b) purchase and sell options on
futures contracts or indices; and (c) purchase publicly traded
securities of companies engaging in whole or in part in such
activities. For purposes of this investment limitation, "commodities"
includes commodity contracts.
6. Act as an underwriter of securities within the meaning of the
Securities Act of 1933, except insofar as the Fund might be deemed to
be an underwriter upon the disposition of portfolio securities acquired
within the limitation on purchases of illiquid securities and except to
the extent that the purchase of obligations directly from the issuer
thereof in accordance with its investment objective, policies and
limitations may be deemed to be underwriting.
The Parkstone U.S. Government Obligations Fund will not:
Purchase securities of any one issuer, other than obligations issued or
guaranteed by the U.S. government or its agencies or instrumentalities, if,
immediately after such purchase, more than 5% of the value of the Fund's
total assets would be invested in such issuer or the Fund would hold more
than 10% of the outstanding voting securities of the issuer, except that up
to 25% of the value of the Fund's total assets may be invested without
regard to such limitations. There is no limit to the percentage of assets
that may be invested in U.S. Treasury bills, notes, or other obligations
issued or guaranteed by the U.S. government or its agencies or
instrumentalities.
Irrespective of the investment restriction above, and pursuant to Rule 2a-7
under the 1940 Act, the Parkstone U.S. Government Obligations Fund will, with
respect to 100% of its total assets, limit its investments in the securities of
any one issuer in the manner provided by such Rule.
In addition, each of the Reorganizing Funds and Existing Armada Funds is subject
to the following non-fundamental limitations, which may be changed without a
vote of the shareholders:
No Fund may:
1. Acquire any other investment company or investment company security
except in connection with a merger, consolidation, reorganization or
acquisition of assets or where otherwise permitted under the 1940 Act.
2. Write or sell put options, call options, straddles, spreads, or any
combination thereof, except as consistent with the Fund's investment
objective and policies for transactions in options on securities or
indices of securities, futures contracts and options on futures
contracts and in similar investments.
3. Purchase securities on margin, make short sales of securities or
maintain a short position, except that, as consistent with a Fund's
investment objective and policies, (a) this investment limitation shall
not apply to the Fund's transactions in futures contracts and related
options, options on securities or indices of securities and similar
instruments, and (b) it may obtain short-term credit as may be
necessary for the clearance of purchases and sales of portfolio
securities.
4. Purchase securities of companies for the purpose of exercising control.
5. Invest more than 15% (10% in the case of a money market fund) of its
net assets in illiquid securities.
Generally if a percentage limitation is satisfied at the time of investment, a
later increase or decrease in such percentage resulting from a change in the
value of a Fund's portfolio securities will not constitute a violation of such
limitation for purposes of the 1940 Act.
See "Investment Restrictions" in the Reorganizing Funds' Statement of Additional
Information, which is incorporated by reference herein, for additional
non-fundamental investment limitations of the Reorganizing Funds.
See "Investment Limitations" in the Existing Armada Funds' Statement of
Additional Information, which is incorporated by reference herein, for
additional non-fundamental investment limitations of the Existing Armada Funds.
26
<PAGE> 37
PURCHASE AND REDEMPTION INFORMATION, EXCHANGE PRIVILEGES, DISTRIBUTION AND
PRICING. The purchase, redemption, exchange privileges and distribution
policies of the Parkstone Funds and the Armada Funds are discussed below in
Appendix D -- Shareholder Transactions and Services to this Combined
Prospectus/Proxy Statement.
OTHER INFORMATION. Parkstone and Armada are registered as open-end management
investment companies under the 1940 Act. Currently, Parkstone offers sixteen
investment portfolios. All Parkstone Funds except the Michigan Municipal Bond
Fund are diversified portfolios. Armada offers twenty-three investment
portfolios. All Existing Armada Funds are diversified portfolios. All New Armada
Funds except the Michigan Municipal Bond Fund are diversified portfolios.
Both Parkstone and Armada were organized as Massachusetts business trusts in
1987 and 1986, respectively, and are subject to the provisions of their
respective Declarations of Trust and Codes of Regulations. Shares of Parkstone
are entitled to one vote for each dollar of value invested, and have a
proportionate fractional vote for any fraction of one dollar invested. Shares of
Armada are entitled to one vote for each full share held and a proportionate
fractional vote for each fractional share held. Shares of both Parkstone and
Armada:
(i) will vote in the aggregate and not by class except as otherwise
expressly required by law or when class voting is permitted by the
respective Board of Trustees; and
(ii) are entitled to participate equally in the dividends and distributions
that are declared with respect to a particular investment portfolio
and in the net distributable assets of such portfolio on liquidation.
Shares of both the Parkstone Funds and the Armada Funds have no par value. In
addition, shares of the Parkstone Funds and Armada Funds have no preemptive
rights and only such conversion and exchange rights as the respective Boards of
Trustees may grant in their discretion. When issued for payment as described in
their Prospectuses, Parkstone Fund shares and Armada Fund shares are fully paid
and non-assessable by such entities except as required under Massachusetts law.
Armada is not required under Massachusetts law to hold annual shareholder
meetings and intends to do so only if required by the 1940 Act. Shareholders
have the right to remove Trustees. To the extent required by law, Armada will
assist in shareholder communications in such matters.
The foregoing is only a summary. Shareholders may obtain copies of the
Declarations of Trust and Codes of Regulations of Parkstone and Armada upon
written request at the addresses shown on the cover page of this Combined
Prospectus/Proxy Statement.
27
<PAGE> 38
INFORMATION RELATING TO VOTING MATTERS
GENERAL INFORMATION. This Combined Prospectus/Proxy Statement is being
furnished in connection with the solicitation of proxies by Parkstone's Board of
Trustees in connection with the Meeting. It is expected that the solicitation of
proxies will be primarily by mail. Officers and service contractors of Parkstone
may also solicit proxies by telephone, telegraph, facsimile or personal
interview. Shareholders may vote by touch-tone telephone or on the Internet by
following the instructions on the insert contained in the proxy solicitation
material. In addition, Parkstone has retained the services of Shareholder
Communications Corporation to aid in the solicitation of proxies for a fee of
approximately $12,000. It is anticipated that banks, brokerage houses and other
custodians will be requested on behalf of Parkstone to forward solicitation
materials to their principals to obtain authorizations for the execution of
proxies. Any Shareholder giving a proxy may revoke it at any time before it is
exercised by submitting to Parkstone a written notice of revocation or a
subsequently executed proxy or by attending the Meeting and voting in person.
Only shareholders of record at the close of business on February 28, 2000 will
be entitled to vote at the Meeting. On that date there were outstanding and
entitled to be voted 604,238,061.009 shares of the Parkstone Prime Obligations
Fund, 102,268,429.437 shares of the Parkstone U.S. Government Obligations Fund,
93,049,319.320 shares of the Parkstone Tax-Free Fund, 34,050,297.537 shares of
the Parkstone Bond Fund, 20,116,129.956 shares of the Parkstone U.S. Government
Income Fund, 12,544,027.069 shares of the Parkstone Limited Maturity Bond Fund,
9,724,743.465 shares of the Parkstone Intermediate Government Obligations Fund,
22,841,274.428 shares of the Parkstone Large Capitalization Fund, 15,140,071.353
shares of the Parkstone Equity Income Fund, 11,408,511.669 shares of the
Parkstone Small Capitalization Fund, 19,287,212.932 shares of the Parkstone
International Discovery Fund, 11,365,154.265 shares of the Parkstone Balanced
Allocation Fund, 7,397,636.201 shares of the Parkstone National Tax Exempt Bond
Fund, 25,816,676.636 shares of the Parkstone Mid Capitalization Fund,
17,347,083.581 shares of the Parkstone Michigan Municipal Bond Fund and
253,072,635.240 shares of the Parkstone Treasury Fund. Every shareholder of
record shall have the right to one vote for each dollar of value invested, and
to have a proportionate fractional vote for any fraction of one dollar invested.
Shareholders will vote separately by Fund.
IMC has advised Parkstone and Armada that IMC and its affiliates will vote the
shares of each Parkstone Fund for which it is record owner as follows:
(i) for each account as to which there is an individual designated both to
vote proxies and to receive annual and semi-annual reports and other
disclosure documents, such individual shall be entitled to vote the
shares beneficially owned by such account; and
(ii) for each account as to which IMC or any of its affiliates is
responsible to vote proxies, an independent third party, unrelated to
IMC, its affiliates or the account shall vote such shares.
If the accompanying proxy is executed and returned in time for the Meeting, the
shares covered thereby will be voted in accordance with the proxy on all matters
that may properly come before the Meeting or any adjournment thereof. For
information on adjournment of the meeting, see "Quorum" below.
SHAREHOLDER AND BOARD APPROVALS. The Reorganization Agreement is being
submitted for approval at the Meeting by the holders of a majority of the
outstanding shares of the Parkstone Prime Obligations Fund, U.S. Government
Obligations Fund, Tax-Free Fund, Bond Fund, U.S. Government Income Fund, Limited
Maturity Bond Fund, Intermediate Government Obligations Fund, Large
Capitalization Fund, Equity Income Fund, Small Capitalization Fund,
International Discovery Fund, Balanced Allocation Fund, National Tax Exempt Bond
Fund, Mid Capitalization Fund, Michigan Municipal Bond Fund and Treasury Fund in
accordance with the provisions of Parkstone's Declaration of Trust and the
requirements of the 1940 Act.
The term "majority of the outstanding shares" of a Parkstone Fund as used herein
means more than 50% of the outstanding shares of such Parkstone Fund.
In tallying shareholder votes, abstentions and broker non-votes (i.e., proxies
sent in by brokers and other nominees that cannot be voted on a proposal because
instructions have not been received from the beneficial owners) will be counted
for purposes of determining whether or not a quorum is present for purposes of
convening the meeting. On the Reorganization, abstentions and broker non-votes
will be considered to be a vote against such proposal.
The approval by the shareholders of the corresponding Existing Armada Funds of
the Reorganization is not being solicited because their approval or consent is
not necessary for the Reorganization to be consummated.
28
<PAGE> 39
For purposes of the 1940 Act, any person who owns directly or through one or
more controlled companies more than 25% of the voting securities of a company is
presumed to "control" such company. National City Corporation, which is
incorporated under the laws of the state of Delaware, and its bank subsidiaries
hold shares for the benefit of their customers and may be considered controlling
persons of certain Parkstone Funds for purposes of certain federal securities
laws. National City Corporation and its subsidiaries intend to vote shares over
which they have voting authority pursuant to the Employee Retirement Income
Security Act of 1974 ("ERISA") in the best interests of the plan participants.
With respect to shares over which National City Corporation and its subsidiaries
possess voting authority, but which are not subject to ERISA, National City
Corporation and its subsidiaries will vote such shares as follows:
(i) for each account as to which there is an individual designated both to
vote proxies and to receive annual and semi-annual reports and other
disclosure documents, such individual shall be entitled to vote the
shares beneficially owned by such account; and
(ii) for each account as to which IMC or any of its affiliates is
responsible to vote proxies, an independent third party, unrelated to
IMC, its affiliates or the account shall vote such shares.
As of February 28, 2000, National City Corporation owns more than 25% of each of
the following Reorganizing Funds:
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF REORGANIZING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
REORGANIZING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- ----------------- ---------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C> <C>
Prime Obligations Fund National City Bank Institutional 98.20% 97.30%
4100 W. 150th Street Shares
Cleveland, OH 44135-1389
U.S. Government National City Bank Institutional 98.25% 97.55%
Obligations Fund 4100 W. 150th Street Shares
Cleveland, OH 44135-1389
Tax Free Fund National City Bank Institutional 98.18% 97.71%
4100 W. 150th Street Shares
Cleveland, OH 44135-1389
Small Capitalization National City Bank Institutional 99.19% 75.85%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Equity Income Fund National City Bank Institutional 98.46% 55.67%
ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Bond Fund National City Bank Institutional 99.52% 95.09%
ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Limited Maturity Bond National City Bank Institutional 99.70% 89.57%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Intermediate National City Bank Institutional 98.89% 88.87%
Government Obligations ATTN: Trust Mutual Funds Shares
Fund P.O. Box 94984
Cleveland, OH 44101-4984
National Tax Exempt National City Bank Institutional 99.73% 93.71%
Bond Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Balanced Allocation National City Bank Institutional 99.92% 87.64%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
International National City Bank Institutional 98.79% 87.93%
Discovery Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
<CAPTION>
PERCENTAGE OF CLASS OF
EXISTING ARMADA FUND
REORGANIZING FUND OWNED ON CONSUMMATION
- ----------------- ----------------------
<S> <C>
Prime Obligations Fund 16.65%
U.S. Government 10.68%
Obligations Fund
Tax Free Fund 18.41%
Small Capitalization 59.36%
Fund
Equity Income Fund 14.04%
Bond Fund 31.53%
Limited Maturity Bond 48.87%
Fund
Intermediate 21.37%
Government Obligations
Fund
National Tax Exempt 41.51%
Bond Fund
Balanced Allocation 65.83%
Fund
International 42.34%
Discovery Fund
</TABLE>
29
<PAGE> 40
National City Corporation owns more than 25% of the following Continuing Funds.
Prior to the Continuing Funds Transaction, the New Armada Funds will have only
nominal assets. Accordingly, the persons who own more than 25% of any class of
shares of the Continuing Funds will not materially change upon consummation of
the Continuing Funds Transaction.
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF CONTINUING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
CONTINUING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- --------------- ---------------------------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Large Capitalization National City Bank Institutional 96.99% 88.24%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
U.S. Government Income National City Bank Institutional 98.76% 79.17%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Michigan Municipal National City Bank Institutional 98.84% 88.27%
Bond Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Mid Capitalization National City Bank Institutional 97.70% 80.46%
Fund ATTN: Trust Mutual Funds Shares
P.O. Box 94984
Cleveland, OH 44101-4984
Treasury Fund National City Bank Institutional 96.09% 95.18%
4100 W. 150th Street Shares
Cleveland, OH 44135-1389
<CAPTION>
PERCENTAGE OF CLASS OF NEW
ARMADA FUND OWNED ON
CONTINUING FUND CONSUMMATION
- --------------- --------------------------
<S> <C>
Large Capitalization 96.99%
Fund
U.S. Government Income 98.76%
Fund
Michigan Municipal 98.84%
Bond Fund
Mid Capitalization 97.70%
Fund
Treasury Fund 96.09%
</TABLE>
At February 28, 2000, the name, address and share ownership of the persons who
owned of record 5% or more of any class of shares of the Reorganizing Funds, and
the percentage of the respective share classes of the corresponding Existing
Armada Funds that would be owned by those persons upon the consummation of the
Reorganizing Funds Transaction based upon their holdings on that date are as
follows:
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF REORGANIZING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
REORGANIZING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- ----------------- ---------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C> <C>
Prime Obligations Fund BISYS BD Services, Inc. Investor 33.20% .29%
P.O. Box 4054 A Shares
Concord, CA 94524-4054
William L. Hess Jr. Investor 6.99% .06%
Trst William L Hess Jr. A Shares
Rev Lvg Trust
DTD 02 20 97
33670 Riviera
Fraser, MI 48026-1621
First Union Securities, Inc. Investor 10.81% .09%
A/C 8002-6189 A Shares
The Samaritan Balanced Fund
Limited Partnership
111 East Kilbourn Avenue
Milwaukee, WI 53202-6611
First Clearing Corporation Investor 10.51% .006%
A/C 8672-4507 B Shares
Honghong Zhang &
Yuxian NIU
1201 Brighton Drive
Urbana, IL 61801-6414
First Clearing Corporation Investor 8.84% .005%
A/C 1080-1621 B Shares
Donald J. Alfery
6140 Niles
Troy, MI 48098-5614
<CAPTION>
PERCENTAGE OF CLASS OF
EXISTING ARMADA FUND
REORGANIZING FUND OWNED ON CONSUMMATION
- ----------------- ----------------------
<S> <C>
Prime Obligations Fund .11%
.02%
.04%
3.44%
2.89%
</TABLE>
30
<PAGE> 41
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF REORGANIZING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
REORGANIZING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- ----------------- ---------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C> <C>
Prime Obligations Fund First Clearing Corporation Investor 6.06% .003%
(continued) A/C 5725-3884 B Shares
Jack R. McCampbell IRA R/O
FCC as Custodian
1184 Squaw Creek
Fostoria, MI 48435-9610
First Clearing Corporation Investor 7.74% .004%
A/C 6637-9473 B Shares
Mary M. Resop &
Gordon R. Resop Jr.
31869 Grove
Fraser, MI 48026-3655
Richard C. Sloan Investor 11.55% .007%
287 Twin Lakes Drive B Shares
Moultrie, GA 31768-7942
First Clearing Corporation Investor 6.34% .004%
A/C 2227-4694 B Shares
Janna J. Christensen
P.O. Box 533
Argenta, IL 62501-0533
SEI Trust Co. Custodian Investor 6.05% .003%
Frank O. Maretka B Shares
IRA
44370 Harmony Lane
Belleville, MI 48111-2469
Raymond James Assoc. Inc CSDN Investor 5.45% .003%
Billy A. Scott IRA B Shares
27435 Victory Road
Paola, KS 66071-5477
U.S. Government SEI Trust Co Custodian Investor 5.22% .04%
Obligations Fund Melvin W. James A Shares
IRA Rollover
2772 Riverview Drive
Kankakee, IL 60901-7180
SEI Trust Co Custodian Investor 5.03% .04%
Stanley P Szasna A Shares
IRA
948 Castlebar Drive
Rochester Hills, MI 48309-2411
SEI Trust Co Custodian Investor 5.03% .04%
Rosemary S. Szasna A Shares
IRA
948 Castlebar Drive
Rochester Hills, MI 48309-2411
Pinehurst Properties TIRF Investor 10.41% .08%
31100 Telegraph Road Suite 200 A Shares
Bingham Farms, MI 48025-4365
Coventry Place LLC TIRF Investor 32.34% .23%
31100 Telegraph Road Suite 200 A Shares
Bingham Farms, MI 48025-4365
Georgetowne Properties Investor 13.76% .10%
General Res A Shares
31100 Telegraph Road Suite 200
Bingham Farms, MI 48025-4365
Tax-Free Fund Charles W. Clancy Investor 9.56% .05%
and Ruth R. Clancy A Shares
Jt Ten
505 East Springfield Avenue
Champaign, IL 61820-5516
<CAPTION>
PERCENTAGE OF CLASS OF
EXISTING ARMADA FUND
REORGANIZING FUND OWNED ON CONSUMMATION
- ----------------- ----------------------
<S> <C>
Prime Obligations Fund 1.98%
(continued)
2.53%
3.78%
2.08%
1.98%
1.78%
U.S. Government .007%
Obligations Fund
.007%
.007%
.014%
.043%
0.18%
Tax-Free Fund .021%
</TABLE>
31
<PAGE> 42
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF REORGANIZING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
REORGANIZING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- ----------------- ---------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C> <C>
Tax-Free Fund Frank K. Zinn and Investor 13.68% .07%
(continued) Ruth A. Zinn, JT TEN A Shares
c/o Dykema Gossett
400 Renaissance Center
35th Floor
Detroit, MI 48243-1502
Bisys BD Services, Inc. Investor 52.87% .25%
P.O. Box 4054 A Shares
Concord, CA 94524-4054
Dalbert W Fear Jr. and Investor 5.60% .03%
Mary Antonia Ausum A Shares
JTWROS
3706 Creekside Ct
Ann Arbor, MI 48105-9570
Douglas D. Freeth Investor 11.39% .05%
and Lucia L. Freeth A Shares
Trst Freeth Grantor
Education Trust
2128 Melrose
Ann Arbor, MI 48104-4068
Bond Fund Soy Capital AG Services & Investor 37.39% 1.35%
Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
Limited Maturity Bond Bisys BD Services, Inc. Investor 30.94% 2.97%
Fund P.O. Box 4054 A Shares
Concord, CA 94524-4054
Soy Capital AG Services & Investor 20.04% 1.93%
Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
First Clearing Corporation Investor 6.50% .04%
A/C 4753-9962 B Shares
Larry D. Kiefer IRA R/O
FCC as Custodian
RR 2 Box 118
Gridley, IL 61744-9304
First Clearing Corporation Investor 6.10% .03%
A/C 4296-9582 B Shares
C. Edward Howerton
4721 Willowbrook Lane
Decatur, IL 62521-4266
First Clearing Corporation Investor 6.38% .04%
A/C 6309-4604 B Shares
Marianne Peterson
957 St. John
Lincoln Park, MI 48146
First Clearing Corporation Investor 5.98% .03%
A/C 8016-4073 B Shares
Martha Fajardo Vaca Cust For
Ernesto Vaca Jr.
1271 Northwestern Avenue
Gurnee, IL 60031-2364
Intermediate Soy Capital AG Services & Investor 21.08% 1.99%
Government Obligations Trust Co. A Shares
Fund 455 N. Main Street
Decatur, IL 62523-1103
John M. Janush Trustee Investor 7.37% .05%
John M. Janush Rev Liv Trust B Shares
U/A DTD 5-30-98
44 Whispering Pines
Winchester, TN 37398-4332
<CAPTION>
PERCENTAGE OF CLASS OF
EXISTING ARMADA FUND
REORGANIZING FUND OWNED ON CONSUMMATION
- ----------------- ----------------------
<S> <C>
Tax-Free Fund .029%
(continued)
.114%
.012%
.024%
Bond Fund 28.05%
Limited Maturity Bond 28.77%
Fund
18.63%
5.28%
4.96%
5.19%
4.86%
Intermediate 13.99%
Government Obligations
Fund
3.69%
</TABLE>
32
<PAGE> 43
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF REORGANIZING FUND
CLASS OF SHARES CLASS OWNED SHARES OWNED ON
REORGANIZING FUND NAME AND ADDRESS OWNED ON RECORD DATE RECORD DATE
- ----------------- ---------------------------------- --------------- -------------- -----------------
<S> <C> <C> <C> <C>
National Tax Exempt Bisys BD Services, Inc. Investor 11.93% .60%
Bond Fund P.O. Box 4054 A Shares
Concord, CA 94524-4054
Caren M. Peterson Investor 8.07% .41%
1813 Kings Highway A Shares
Rockford, IL 61107-1354
Soy Capital AG Services & Investor 25.11% 1.27%
Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
Donaldson Lufkin Jenrette Investor 12.90% .08%
Securities Corporation Inc. B Shares
P.O. Box 2052
Jersey City, NJ 07303-2052
Harlan Hawkins & Investor 29.34% .17%
Mark Hawkins TTEE B Shares
U/A DTD May 21, 1992
Cecil C. Hawkins Trust
4412 George Avenue
Cortland, IL 60112
Theodore H. Stein and Investor 5.48% .03%
Dolores A. Stein B Shares
JTWROS
153 Kingsbridge
Bristol, TN 37620-2957
NFSC FEBO #WHL-000396 Investor 27.51% .16%
Betty J. Bowen B Shares
2400 Country Club Drive
Springfield, IL 62704-3262
International Soy Capital AG Services & Investor 5.28% .44%
Discovery Fund Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
<CAPTION>
PERCENTAGE OF CLASS OF
EXISTING ARMADA FUND
REORGANIZING FUND OWNED ON CONSUMMATION
- ----------------- ----------------------
<S> <C>
National Tax Exempt 5.64%
Bond Fund
3.82%
11.88%
8.46%
19.25%
3.60%
18.06%
International 4.70%
Discovery Fund
</TABLE>
At February 28, 2000, the name, address and percentage of ownership of the
persons who owned of record 5% or more of any class of shares of the Existing
Armada Funds, and the percentage of the respective share classes that would be
owned by those persons upon consummation of the Reorganizing Funds Transaction
based upon their holdings on February 28, 2000, are as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
International Equity First Clearing Corp. Class A Shares 7.21% .06%
Fund NatCity Investments
Account #8339-4138
FBO John C. Tay IRA
10700 North Park Drive
Glen Allen, VA 23060
Soy Capital AG Services & Class A Shares 6.41% .05%
Trust Co.
455 N. Main Street
Decatur, IL 62523-1103
First Clearing Corporation Class B Shares 7.24% .006%
A/C 8710-7659
Joseph R. Wessel IRA
FCC as Custodian
17600 Art Lane
Fisherville, KY 40023-9756
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
International Equity .80%
Fund
.71%
.27%
</TABLE>
33
<PAGE> 44
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
International Equity First Clearing Corporation Class B Shares 6.90% .006%
Fund (continued) A/C 4499-9888
Dale I. Isenberg IRA
FCC as Custodian
1190 Parkside Dr.
Limestone, NY 14753-9704
First Clearing Corporation Class B Shares 5.18% .004%
A/C 2124-6203
Paul C. Carver IRA
FCC as Custodian
314 Concord Circle Rd
Beaver Falls, PA 15010-8516
First Clearing Corporation Class B Shares 15.46% .013%
A/C 8406-2776
Trionix Research Lab Inc.
8037 Bavaria Road
Twinsburg, OH 44087-2261
First Clearing Corporation Class B Shares 7.47% .006%
A/C 8919-0907
Rhonda Young
42 Main Street
P.O. Box 85
Daisytown, PA 15427-0085
First Clearing Corporation Class B Shares 6.01% .005%
A/C 8089-4733
Schusters Greenhouse Ltd.
9165 Columbia Road
Olmsted Falls, OH 44138-2426
Sheldon & Co. (Reinv) Class I Shares 8.13% 8.06%
Attn: Trust Mutual Funds
Account #100023342
P.O. Box 94777
Cleveland, OH 44101-4777
Sheldon & Co. TTEE Class I Shares 36.68% 36.33%
C/O National City Bank
P.O. Box 94984
Cleveland, OH 44101-4984
National City Bank Class I Shares 49.14% 48.67%
C/O Sheldon & Co.
P.O. Box 94777
Cleveland, OH 44101-4777
Small Cap Growth Fund First Clearing Corporation Class B Shares 8.33% .01%
A/C 4421-4137
William S. Irwin and
Joan A. Irwin
4008 Kurtz Ave.
Louisville, KY 40229-1136
First Clearing Corporation Class B Shares 37.68% .05%
A/C 5732-8021
Keith A. Monnett IRA
FCC as Custodian
716 Castleton Dr.
Greencastle, IN 46135-1104
First Clearing Corporation Class B Shares 12.83% .02%
A/C 8349-0905
Virgil C. Thorson and
Marlys M. Thorson
6125 Waterside Dr.
Fort Wayne, IN 46814-3267
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
International Equity .26%
Fund (continued)
.20%
.58%
.28%
.23%
4.65%
20.96%
28.08%
Small Cap Growth Fund .08%
.38%
.13%
</TABLE>
34
<PAGE> 45
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Small Cap Growth Fund Sheldon & Co. (Reinv) Class I Shares 10.87% 10.69%
(continued) Attn: Trust Mutual Funds
Account #10023342
P.O. Box 94777
Cleveland, OH 44101-4777
Sheldon & Co. TTEE Class I Shares 44.38% 43.62%
c/o National City Bank
Trust Mutual FDS
P.O. Box 94984
Cleveland, OH 44101-4984
National City Bank Class I Shares 42.04% 41.33%
c/o Sheldon & Co.
Trust Mutual FDS
P.O. Box 94777
Cleveland, OH 44101-4777
Equity Income Fund National Financial Class A Shares 5.49% .11%
Services Corp.
For the Exclus. Ben. of
our Customer
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
First Clearing Corporation Class B Shares 5.07% .01%
A/C 1182-2774
Walter S. Archer IRA R/O
FCC as Custodian
69 E. Schaaf Road
Brooklyn Heights, OH 44131-1201
Sheldon & Co. (Reinv) Class I Shares 31.23% 30.54%
Attn: Trust Mutual Funds
Account #1023342
P.O. Box 94777
Cleveland, OH 44101-4777
Sheldon & Co. Class I Shares 20.48% 20.03%
Attn: Trust Mutual Funds
P.O. Box 94984
Cleveland, OH 44101-4984
Sheldon & Co. (Cash/Reinv) Class I Shares 42.98% 42.03%
c/o National City Bank
Attn: Trust Mutual Funds
P.O. Box 94777
Cleveland, OH 44101-4777
Balanced Allocation Janitor Supplies Inc. P/S Plan Class A Shares 9.40% 0.51%
Fund Russel Derby II
ATTN: Russel Derby
Personal and Confidential
1612 S. Neil St.
Champaign, IL 61820-7212
Major Screw Machine Class A Shares 7.53% 0.41%
401(k) Plan
Marvin T. O'Malley
ATTN: Marvin O'Malley
Personal and Confidential
27262 Wick Road
Taylor, MI 48180-3017
First Clearing Corporation Class A Shares 7.53% 0.41%
A/C 6995-3098
Steven R. Schlater
Marlene L. Schlater
9900 Klipstine Road
Versailles, OH 45380-9584
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Small Cap Growth Fund 4.37%
(continued)
17.81%
16.88%
Equity Income Fund .92%
.41%
26.78%
17.56%
36.85%
Balanced Allocation 2.10%
Fund
1.68%
1.68%
</TABLE>
35
<PAGE> 46
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Balanced Allocation McMullen Travel & Tours Class B Shares 6.62% 0.05%
Fund (continued) P/S Plan
Mary Ann Mitcham
ATTN: Linda McMullen
Personal and Confidential
224 South Broad Street
Grove City, PA 16127-1504
First Clearing Corporation Class B Shares 12.11% 0.09%
A/C 4892-6313
Willy P. Kutschke
RR 3 Box 140
Sugar Grove, PA 16350-9113
First Clearing Corporation Class B Shares 6.77% 0.05%
A/C 5159-5306
Wayne W. Loomis &
Lois S. Loomis
4 Pleasant Drive
Youngsville, PA 16371-9643
First Clearing Corporation Class B Shares 7.07% 0.05%
A/C 7477-1439
Barbara A. Stanford &
Herbert L. Stanford
104 Main Street
North Warren, PA 16365-4618
First Clearing Corporation Class B Shares 7.22% 0.05%
A/C 2135-7612
Wanda Cassell IRA
FCC as Custodian
3310 Teakwood Circle
Louisville, KY 40216-3107
First Clearing Corporation Class B Shares 5.06% 0.04%
A/C 5095-4553
Judy L. Limbrick IRA
FCC as Custodian
2315 Fluhrs Lane
Louisville, KY 40216-1419
First Clearing Corporation Class B Shares 7.27% 0.05%
A/C 3607-7352
Mary M. Goodman
710 West Washington Street
Bradford, PA 16701-2631
Sheldon & Co. (Reinv) Class I Shares 98.77% 92.77%
Attn: Trust Mutual Funds
Account #10023342
P.O. Box 94777
Cleveland, OH 44101-4777
Bond Fund Post & Co. A/C #356678 Class A Shares 5.24% 0.03%
C/O The Bank of New York
ATTN: Mutual Funds/Reorg Dept
P.O. Box 1066 Wall St. Sta
New York, NY 10286
First Clearing Corporation Class A Shares 11.94% 0.07%
A/C 1302-8189
Baldwin & Sours PSP & TR
Thomas Sours TTEE
5263 Trabue Road
Columbus, OH 43228-9564
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Balanced Allocation 0.63%
Fund (continued)
1.15%
0.64%
0.67%
.68%
.48%
.69%
33.70%
Bond Fund 1.31%
2.99%
</TABLE>
36
<PAGE> 47
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Bond Fund (continued) First Clearing Corporation Class B Shares 5.93% 0.006%
A/C 4499-9888
Dale I. Isenberg IRA
FCC as Custodian
1190 Parkside Drive
Limestone, NY 14753-9704
First Clearing Corporation Class B Shares 5.62% 0.006%
A/C 7786-3557
Charles D. Thompson IRA
FCC as Custodian
4604 Dannywood Road
Louisville, KY 40220-1053
First Clearing Corporation Class B Shares 5.24% 0.005%
A/C 1210-0708
William J. Ash IRA
FCC as Custodian
410 Donard Park Avenue
Louisville, KY 40218-2173
First Clearing Corporation Class B Shares 7.11% 0.007%
A/C 6242-7306
James M. Pearl IRA
FCC as Custodian
3130 Kaye Lawn Drive
Louisville, KY 40220-2713
First Clearing Corporation Class B Shares 8.47% 0.008%
A/C 2065-0386
Carborundum Grinding
Wheel Co.
Savings Plan
1011 E. Front Street
P.O. Box 759
First Clearing Corporation Class B Shares 5.97% 0.006%
A/C 5610-2760
Judy A. Messett
1855 Farrell Terrace
Farrell, PA 16121-1332
First Clearing Corporation Class B Shares 5.80% 0.006%
A/C 5717-0934
Joseph D. Masso
4155 West 144th
Cleveland, OH 44135-2053
First Clearing Corporation Class B Shares 5.99% 0.006%
A/C 4818-4932
James R. Kelly IRA
FCC as Custodian
6025 Leslie Drive
Michael F. Kelly POA
c/o National City Bank Class I Shares 12.23% 12.14%
Sheldon & Co.
Trust Mutual Funds
P.O. Box 94777
Cleveland, OH 44101-4777
Sheldon & Co. Class I Shares 30.78% 30.57%
Attn: Trust Mutual Funds
P.O. Box 94984
Cleveland, OH 44101-4984
Sheldon & Co. (Cash/Reinv) Class I Shares 55.88% 55.50%
c/o National City Bank
Attn: Trust Mutual Funds
P.O. Box 94777
Cleveland, OH 44101-4777
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Bond Fund (continued) 1.15%
1.09%
1.02%
1.38%
1.65%
1.16%
1.13%
1.16%
8.35%
21.03%
38.18%
</TABLE>
37
<PAGE> 48
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Intermediate Bond National Financial Services Corp. Class A Shares 12.78% 0.18%
Fund For the Exclus Ben of our Customer
P.O. Box 3908
Church Street Station
New York, NY 10008-3908
McMullen Travel & Tours Class B Shares 5.11% 0.01%
P/S Plan
Mary Ann Mitcham
ATTN: Linda McMullen
Personal and Confidential
224 South Broad Street
Grove City, PA 16127-1504
First Clearing Corporation Class B Shares 7.80% 0.02%
A/C 7786-3557
Charles D. Thompson IRA
FCC as Custodian
4604 Dannywood Road
Louisville, KY 40220-1053
First Clearing Corporation Class B Shares 6.70% 0.01%
A/C 3167-9506
Robert Fello Sr. IRA
FCC as Custodian
216 Holmes Street
Vandergrift, PA 15690-1621
First Clearing Corporation Class B Shares 5.49% 0.01%
A/C 7005-7606
Robert L. Robinson IRA
FCC as Custodian
6107 Diablo Ct.
Louisville, KY 40219-5236
First Clearing Corporation Class B Shares 5.19% 0.01%
A/C 2124-6203
Paul C. Carver IRA
FCC as Custodian
314 Concord Circle Road
Beaver Falls, PA 15010-8516
First Clearing Corporation Class B Shares 9.50% 0.02%
A/C 6581-8618
Marie A. Pace IRA
FCC as Custodian
305 Irvine Road
Lexington, KY 40502-1817
Sheldon & Co. (Reinv) Class I Shares 13.82% 13.59%
Attn: Trust Mutual Funds
Account #10023342
P.O. Box 94984
Cleveland, OH 44101-4984
Sheldon & Co. Class I Shares 28.39% 27.92%
P.O. Box 94984
Attn: Trust Mutual Funds
Cleveland, OH 44101-4984
Sheldon & Co. Class I Shares 41.88% 41.19%
Attn: Trust Mutual Funds
P.O. Box 94984
Cleveland, OH 44101-4984
SEI Trust Company Class I Shares 14.98% 14.74%
Attn: Mutual Fund Administrator
One Freedom Valley Drive
Oaks, PA 19456
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Intermediate Bond 4.30%
Fund
.25%
.38%
.32%
.26%
.25%
4.74%
10.84%
22.26%
32.83%
11.75%
</TABLE>
38
<PAGE> 49
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Limited Maturity Bond Soy Capital AG Services & Class A Shares 16.51% 0.13%
Fund Trust Co.
455 N. Main Street
Decatur, IL 62523-1103
Gateway Milling Co., Inc. Class A Shares 19.18% 0.15%
P/S Plan
Charles Pitcher
ATTN: Matt Pitcher
Personal and Confidential
1610 Altorfer Drive
Peoria, IL 61615-1923
First Clearing Corporation Class A Shares 22.20% 0.17%
A/C 1882-1036
Harvey M. Brunner, Jr. IRA
FCC as Custodian
700 Brick Mill Run, Apt. 106
Westlake, OH 44145-1655
First Clearing Corporation Class A Shares 5.04% 0.04%
A/C 8506-3444
Arthur A. Winkel IRA R/O
FCC as Custodian
47935 Hanford
Canton, MI 48187-5421
Shore West Construction Class B Shares 28.35% 0.04%
401(k) Plan
Gary Scothon
Attn: Barbara Beyer
Personal and Confidential
23826 Lorain Rd
North Olmsted, OH 44070-2226
Shore West Construction Class B Shares 13.31% 0.02%
401(k) Plan
Kenneth M. Sokol
Attn: Barbara Beyer
Personal and Confidential
23826 Lorain Rd
North Olmsted, OH 44070-2226
Shore West Construction 401(k) Class B Shares 10.73% 0.01%
Plan
Audrey M. Sokol
Attn: Barbara Beyer
Personal and Confidential
23826 Lorain Rd
North Olmsted, OH 44070-2226
First Clearing Corporation Class B Shares 12.48% 0.02%
A/C 1617-9565
Dorothy A. Boardman
3476 Dixiana Drive
Lexington, KY 40517-2736
First Clearing Corporation Class B Shares 27.26% 0.04%
A/C 6379-0631
Jane F. Obodzinski
1205 Brookpark Road
Cleveland, OH 44109-5827
Sheldon & Co. (Reinv) Class I Shares 45.63% 45.21%
Future Quest
c/o National City Bank
Attn: Trust Mutual
Funds/01-999999774
P.O. Box 94777
Cleveland, OH 44101-4777
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Limited Maturity Bond 1.16%
Fund
1.35%
1.56%
.36%
5.31%
2.49%
2.01%
2.34%
5.05%
23.27%
</TABLE>
39
<PAGE> 50
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Limited Maturity Bond Sheldon & Co. Class I Shares 45.28% 44.86%
Fund (continued) Future Quest
c/o National City Bank
Attn: Trust Mutual
Funds/01-999999774
P.O. Box 94984
Cleveland, OH 44101-4984
Sheldon & Co. TTEE Class I Shares 6.01% 5.96%
Future Quest -- c/o National City
Bank
Trust Mutual Funds/ 01-999999774
P.O. Box 94777
Cleveland, OH 44101-4777
National Tax Exempt First Clearing Corporation Class A Shares 80.90% 3.27%
Bond Fund A/C 1143-7442
Bill Anest
400 S. Curran
Grayslake, IL 60030-9784
First Clearing Corporation Class B Shares 19.03% 0.04%
A/C 2099-9089
James E. Chenault &
Judith E. Chenault
8609 Cool Brook Ct.
Louisville, KY 40291-1501
First Clearing Corporation Class B Shares 10.66% 0.02%
A/C 6708-7889
Dorothy K. Riley TTEE
Dorothy and Lester Riley Trust
5 Locust HL
Crawfordsville, IN 47933-3347
First Clearing Corporation Class B Shares 21.33% 0.05%
A/C 5482-0768
Theodore R. McDonald &
Rose Ann McDonald
7712 St. Bernard Ct.
Louisville, KY 40291-2462
First Clearing Corporation Class B Shares 30.00% 0.07%
A/C 7309-7317
Howard B. Smith, Jr.
545 Country Manor Lane
Shepherdsville, KY 40165-9543
First Clearing Corporation Class B Shares 11.04% 0.03%
A/C 3132-5861
Anne B. Farkas and
Robert S. Farkas
279 S. Oakland Avenue
Sharon, PA 16146-4049
Sheldon & Co. TTEE Class I Shares 75.38% 72.05%
c/o National City Bank
Trust Mutual Funds
P.O. Box 94777
Cleveland, OH 44101-4777
National City Bank Class I Shares 20.60% 19.69%
c/o Sheldon & Co.
Trust Mutual Funds
P.O. Box 94777
Cleveland, OH 44101-4777
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Limited Maturity Bond 23.08%
Fund (continued)
3.07%
National Tax Exempt 42.19%
Bond Fund
6.54%
3.66%
7.33%
10.31%
3.79%
43.88%
11.99%
</TABLE>
40
<PAGE> 51
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Tax Exempt Money National City MI/IL Class A Shares 5.95% 2.02%
Market Fund FBO Corporate PCG/Retail Sweep
Cust
Cash Management Operations
770 W. Broad Street LOC 16-0347
Columbus, OH 43222-1419
First Clearing Corporation Class A Shares 54.48% 18.52%
P.O. Box 6629
Glen Allen, VA 23058-6629
Indiana Class A Shares 7.86% 2.67%
National City Bank of Indiana
FBO PCG/Retail Sweep Customers
Cash Management Operations
770 W. Broad St. LOC. 16-0347
Columbus, OH 43222-1419
National City Bank Class A Shares 18.35% 6.24%
FBO PCG/Retail Sweep Customers
770 W. Broad Street, LOC
16-0347
Columbus, OH 43222-1419
National City Bank Class I Shares 16.48% 10.88%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 38.42% 25.36%
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 6.62% 4.37%
Operations Center
Attn: Trust Operations Funds
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 18.98% 12.53%
Operations Center
Attn: Trust Operations Funds
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 9.42% 6.22%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
Money Market Fund National City MI/IL Class A Shares 5.18% 1.94%
FBO Corporate Sweep Customer
Cash Management Operations
770 W. Broad Street Loc. 16-0347
Columbus, OH 43222-1419
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Tax Exempt Money 5.94%
Market Fund
54.37%
7.84%
18.31%
13.39%
31.22%
5.38%
15.42%
7.65%
Money Market Fund 5.16%
</TABLE>
41
<PAGE> 52
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Money Market Fund Pennsylvania Class A Shares 19.78% 7.42%
(continued) FBO Corporate Autosweep Customers
C/o National Bank of PA
300 Fourth Street 2-191
Pittsburgh, PA 15222-2003
Wheat First Securities Class A Shares 47.65% 17.88%
P.O. Box 6629
Glen Allen, VA 23058-6629
National City Bank Class A Shares 15.63% 5.87%
FBO PCG/Retail Sweep Customer
770 W. Broad St. LOC 16-0347
Columbus, OH 43222-1419
National City Bank Class A Shares 5.06% 1.90%
FBO PCG/Retail Sweep Customer
770 W. Broad Street LOC 16-0347
Columbus, OH 43222-1419
First Clearing Corporation Class B Shares 7.87% 0.001%
A/C 7335-5550
Roger L. Schafer IRA
FCC as Custodian
3945 7th Street
New Kensington, PA 15068-7205
S&H Machine Products, Inc. Class B Shares 68.81% 0.01%
Conversion Holding Account
P.O. Box 8705
Boston, MA 02266-8705
First Clearing Corporation Class B Shares 5.85% 0.001%
A/C 4505-9511
John M. Jervis
301 W. Beardsley
Champaign, IL 61820-2927
First Clearing Corporation Class B Shares 11.91% 0.002%
A/C 2065-0386
Carborundum Grinding
Wheel Co.
Savings Plan
1011 E. Front Street
P.O. Box 759
National City Bank Class I Shares 29.58% 18.48%
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 7.50% 4.69%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 10.09% 6.30%
Operations Center
Attn: Trust Operations Funds
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
Sheldon & Co. Class I Shares 5.16% 3.22%
P.O. Box 94984
ATTN: Trust Mutual Funds
Cleveland, OH 44101-4984
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Money Market Fund 19.72%
(continued)
47.49%
15.58%
5.04%
5.29%
46.28%
3.93%
8.01%
24.10%
6.11%
8.22%
4.21%
</TABLE>
42
<PAGE> 53
<TABLE>
<CAPTION>
PERCENTAGE OF CLASS PERCENTAGE OF EXISTING
CLASS OF SHARES OWNED ON RECORD ARMADA FUND SHARES
EXISTING ARMADA FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- -------------------- ---------------------------------- --------------- ------------------- ----------------------
<S> <C> <C> <C> <C>
Money Market Fund National City Bank Class I Shares 16.29% 10.18%
(continued) Trust Operations
Operations Center
3rd Floor North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 11.69% 7.30%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
Government Money National City MI/IL Class A Shares 44.00% 17.59%
Market Fund FBO Corporate Sweep Customer
Cash Management Operations
770 W. Broad Street Loc. 16-0347
Columbus, OH 43222-1419
Pennsylvania FBO Corporate Class A Shares 35.09% 14.03%
Autosweep Customers
c/o National City Bank of PA
300 Fourth Street 2-191
Pittsburgh, PA 15222-2003
Wheat First Securities Class A Shares 12.28% 4.91%
P.O. Box 6629
Glen Allen, VA 23058-6629
National City Bank Class I Shares 9.91% 5.95%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 West 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 25.52% 15.32%
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 20.84% 12.51%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
National City Bank Class I Shares 12.74% 7.65%
Operations Center
Attn: Trust Operations Funds
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
NatCity Investments, Inc. Class I Shares 6.16% 3.70%
ATTN: Jo Bredt
1965 East Sixth Street
Loc #3090
Cleveland, OH 44114-2214
National City Bank Class I Shares 12.14% 7.29%
Trust Operations
Operations Center
3rd Floor, North Annex
4100 W. 150th Street
Cleveland, OH 44135-1389
<CAPTION>
PERCENTAGE OF CLASS
OWNED ON
EXISTING ARMADA FUND CONSUMMATION
- -------------------- -------------------
<S> <C>
Money Market Fund 13.27%
(continued)
9.52%
Government Money 43.95%
Market Fund
35.05%
12.26%
8.83%
22.74%
18.57%
11.35%
5.49%
10.82%
</TABLE>
43
<PAGE> 54
The name, address and percentage of ownership of each person who owns of record
5% or more of any class of shares of the Continuing Funds is listed below. Prior
to the Continuing Funds Transaction, the New Armada Funds will have only nominal
assets. Accordingly, the persons who own of record 5% or more of any class of
shares of the Continuing Funds will not materially change upon consummation of
the Continuing Funds Transaction.
<TABLE>
<CAPTION>
PERCENTAGE OF
PERCENTAGE OF CLASS CONTINUING
CLASS OF SHARES OWNED ON RECORD FUND SHARES
CONTINUING FUND NAME AND ADDRESS OWNED DATE OWNED ON RECORD DATE
- --------------- ---------------------------------- --------------- ------------------- --------------------
<S> <C> <C> <C> <C>
Treasury Fund The Bank of New York Investor 91.04% .86%
TRST FOA CCMT Series 1995-2 A Shares
Attn: Joyce Maccou
101 Barclay Street 12E
New York, NY 10286-0099
Large Capitalization Bisys BD Services, Inc. Investor 12.05% .63%
Fund P.O. Box 4054 A Shares
Concord, CA 94524-4054
Soy Capital AG Services & Investor 7.12% .37%
Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
U.S. Government Soy Capital AG Services & Investor 18.60% 2.62%
Income Fund Trust Co. A Shares
455 N. Main Street
Decatur, IL 62523-1103
Bisys BD Services, Inc. Investor 11.86% 1.67%
P.O. Box 4054 A Shares
Concord, CA 94524-4054
Michigan Municipal First Clearing Corporation Investor 8.11% .09%
Bond Fund A/C 1474-8811 B Shares
Marion E. Belloni
27715 Alger Lane
Madison Heights, MI 48071-4523
First Clearing Corporation Investor 5.24% .06%
A/C 6338-8396 B Shares
Betty May Nicholas
866 Dursley
Bloomfield, MI 48304-2010
First Clearing Corporation Investor 5.96% .06%
A/C 7645-7001 B Shares
William G. Swain
2075 Kingston
White Lake, MI 48386-1616
<CAPTION>
PERCENTAGE OF CLASS
OF NEW ARMADA
FUNDS
OWNED ON
CONTINUING FUND CONSUMMATION
- --------------- -------------------
<S> <C>
Treasury Fund 91.04%
Large Capitalization 12.05%
Fund
7.12%
U.S. Government 18.60%
Income Fund
11.86%
Michigan Municipal 8.11%
Bond Fund
5.24%
5.96%
</TABLE>
At February 28, 2000, the trustees and officers of Parkstone, as a group, owned
less than 1% of the outstanding shares of each of the Parkstone Funds. At
February 28, 2000, the trustees and officers of Armada, as a group, owned less
than 1% of the outstanding shares of each of the Armada Funds.
APPRAISAL RIGHTS. Shareholders are not entitled to any rights of share
appraisal under Parkstone's Declaration of Trust or under the laws of the
Commonwealth of Massachusetts in connection with the Reorganization.
Shareholders have, however, the right to redeem from Parkstone their Parkstone
Fund shares at net asset value until the Effective Time of the Reorganization,
and thereafter shareholders may redeem from Armada the Armada shares acquired by
them in the Reorganization at net asset value.
QUORUM. In the event that a quorum is not present at the Meeting, or in the
event that a quorum is present at the Meeting but sufficient votes to approve
the Reorganization Agreement and the transactions contemplated thereby are not
received, the persons named as proxies may propose one or more adjournments of
the Meeting to permit further solicitation of proxies. Any such adjournment will
require the affirmative vote of a majority of those shares affected by the
adjournment that are represented at the Meeting in person or by proxy. If a
quorum is present, the persons named as proxies will vote those proxies which
they are entitled to vote FOR such proposals in favor of such adjournments, and
will vote those proxies
44
<PAGE> 55
required to be voted AGAINST such proposals against any adjournment. A
shareholder vote may be taken with respect to one or more Parkstone Funds prior
to any such adjournment if sufficient votes have been received for approval with
respect to any such Parkstone Fund. A quorum is constituted with respect to a
Parkstone Fund by the presence in person or by proxy of the holders of more than
50% of the outstanding shares of the Fund entitled to vote at the Meeting.
Parkstone proxies properly executed and marked with a negative vote or an
abstention will be considered to be present at the Meeting for the purposes of
determining the existence of a quorum for the transaction of business.
ANNUAL MEETINGS. Armada does not presently intend to hold annual meetings of
shareholders for the election of trustees and other business unless and until
such time as less than a majority of the trustees holding office have been
elected by the shareholders, at which time the trustees then in office will call
a shareholders' meeting for the election of trustees. Shareholders have the
right to call a meeting of shareholders to consider the removal of one or more
trustees or for other matters and such meetings will be called when requested in
writing by the holders of record of 20% or more of Armada's outstanding shares
of common stock. To the extent required by law, Armada will assist in
shareholder communications on such matters.
ADDITIONAL INFORMATION ABOUT ARMADA
Information about the Existing Armada Funds is included in the Prospectus
accompanying this Combined Prospectus/Proxy Statement, which is incorporated by
reference herein. Additional information about these Funds is included in their
Statement of Additional Information dated December 10, 1999, which has been
filed with the SEC. A copy of the Statement of Additional Information may be
obtained without charge by writing to Armada, One Freedom Valley Drive, Oaks,
Pennsylvania 19456, or by calling Armada at 1-800-622-FUND (3863).
Armada is subject to the informational requirements of the Securities Exchange
Act of 1934 and the 1940 Act, as applicable, and, in accordance with such
requirements, files proxy materials, reports and other information with the SEC.
These materials can be inspected and copied at the Public Reference Facilities
maintained by the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549, and at
the offices of listed above and at the SEC's Regional Offices at 7 World Trade
Center, Suite 1300, New York, New York 10048 and 500 West Madison Street, Suite
1400, Chicago, Illinois 60661. Copies of such material can also be obtained from
the Public Reference Branch, Office of Consumer Affairs and Information
Services, Securities and Exchange Commission, Washington, D.C. 20549, at
prescribed rates.
ADDITIONAL INFORMATION ABOUT PARKSTONE
Information about Parkstone is incorporated herein by reference from its
Prospectuses dated September 17, 1999, and Statement of Additional Information,
dated September 17, 1999, copies of which may be obtained without charge by
writing or calling Parkstone at the address and telephone number shown on the
cover page of this Combined Prospectus/ Proxy Statement. Reports and other
information filed by Parkstone can be inspected and copied at the Public
Reference Facilities maintained by the SEC at 450 Fifth Street, N.W.,
Washington, D.C. 20549, and copies of such material can be obtained from the
Public Reference Branch, Office of Consumer Affairs and Information Services,
Securities and Exchange Commission, Washington, D.C. 20549, at prescribed rates.
LITIGATION
Neither Parkstone nor Armada is involved in any litigation that would have any
material adverse financial effect upon either the Parkstone Funds or the Armada
Funds.
FINANCIAL STATEMENTS
The financial highlights and financial statements for the Reorganizing Funds for
the fiscal years ended May 31, 1999 are contained in Parkstone's Annual Report
to Shareholders and in Parkstone's Prospectuses dated September 17, 1999, and
its Statement of Additional Information dated September 17, 1999, each of which
is incorporated by reference into this Combined Prospectus/Proxy Statement. The
financial highlights and the financial statements for the Existing Armada Funds
for the fiscal years ended May 31, 1999 are contained in Armada's Annual Report
to Shareholders dated May 31, 1999 and in Armada's Prospectus relating to the
Class I shares of the Existing Armada Funds dated September 28, 1999, and
Armada's Prospectus relating to the Class A, B and C shares of the Existing
Armada Funds dated December 10, 1999, and the Statement of Additional
Information dated December 10, 1999, each of which is incorporated by reference
in this
45
<PAGE> 56
Combined Prospectus/Proxy Statement. The Semi-Annual Report to Shareholders with
respect to the Existing Armada Funds for the period ended November 30, 1999 has
been filed with the SEC. The financial highlights and financial statements in
such Semi-Annual Report are incorporated by reference into this Combined
Prospectus/Proxy Statement. No other parts of the Semi-Annual Report are
incorporated herein. The financial statements and financial highlights included
in the Semi-Annual Report are unaudited.
The audited financial statements of the Reorganizing Funds for the fiscal year
ended May 31, 1999, contained in Parkstone's Annual Report and incorporated by
reference in this Combined Prospectus/Proxy Statement, have been incorporated
herein in reliance on the report of PricewaterhouseCoopers LLP, independent
auditors, given upon the authority of such firm as experts in accounting and
auditing.
The financial statements of the Existing Armada Funds for the fiscal year ended
May 31, 1999, contained in Armada's Annual Report, audited by Ernst & Young,
LLP, have been incorporated herein by reference in reliance on their report,
given on their authority as experts in accounting and auditing.
OTHER BUSINESS
Parkstone's Board knows of no other business to be brought before the Meeting.
However, if any other matters come before the Meeting, it is the intention that
proxies which do not contain specific restrictions to the contrary will be voted
on such matters in accordance with the judgment of the persons named in the
enclosed form of proxy.
SHAREHOLDER INQUIRIES
Shareholder inquiries may be addressed to Parkstone in writing at the address on
the cover page of this Combined Prospectus/Proxy Statement or by telephoning
1-800-451-8377.
* * *
46
<PAGE> 57
APPENDIX A
AGREEMENT AND PLAN OF
REORGANIZATION
BY AND BETWEEN
ARMADA FUNDS
AND
THE PARKSTONE GROUP OF FUNDS
DATED NOVEMBER 17, 1999
A-1
<PAGE> 58
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
-----
<C> <S> <C>
I. Transfer of Assets of Parkstone............................. A-3
II. Liquidating Distributions and Termination of Parkstone...... A-5
III. Valuation Times............................................. A-6
IV. Certain Representations, Warranties and Agreements of A-6
Parkstone...................................................
V. Certain Representations, Warranties and Agreements of A-8
Armada......................................................
VI. Shareholder Action on Behalf of the Acquired Funds.......... A-9
VII. N-14 Registration Statement and Proxy Solicitation A-9
Materials...................................................
VIII. Effective Times of the Reorganization....................... A-9
IX. Armada Conditions........................................... A-9
X. Parkstone Conditions........................................ A-11
XI. Tax Documents............................................... A-12
XII. Finder's Fees............................................... A-12
XIII. Announcements............................................... A-13
XIV. Further Assurances.......................................... A-13
XV. Termination of Representations and Warranties............... A-13
XVI. Termination of Agreement.................................... A-13
XVII. Amendment and Waiver........................................ A-13
XVIII. Governing Law............................................... A-13
XIX. Successors and Assigns...................................... A-13
XX. Beneficiaries............................................... A-13
XXI. Parkstone Liability......................................... A-13
XXII. Armada Liability............................................ A-14
XXIII. Indemnification and Insurance............................... A-14
XXIV. Notices..................................................... A-15
XXV. Expenses.................................................... A-15
XXVI. Entire Agreement............................................ A-16
XXVII. Counterparts................................................ A-16
</TABLE>
A-2
<PAGE> 59
AGREEMENT AND PLAN OF REORGANIZATION
AGREEMENT AND PLAN OF REORGANIZATION made as of November 17, 1999 between ARMADA
FUNDS, a Massachusetts business trust ("Armada"), and THE PARKSTONE GROUP of
FUNDS, a Massachusetts business trust ("Parkstone").
WHEREAS, the parties desire that substantially all of the known assets and
liabilities of Parkstone's portfolios be transferred to, and be acquired and
assumed by, certain Armada portfolios in exchange for A Shares, B Shares or I
Shares, as applicable, of the Armada portfolios which shall thereafter be
distributed by Parkstone to the holders of Investor A Shares, Investor B Shares
or Institutional Shares, as applicable, of its portfolios, all as described in
this Agreement (the "Reorganization");
WHEREAS, the parties intend that the Armada Large Cap Ultra, U.S. Government
Income Fund, Mid Cap Growth Fund, Michigan Municipal Bond Fund and Treasury Plus
Money Market Fund will each have nominal assets and liabilities before the
Reorganization and will continue the investment operations of the Parkstone
Large Capitalization Fund, U.S. Government Income Fund, Mid Capitalization Fund,
Michigan Municipal Bond Fund and Treasury Fund (the "Continuing Funds"),
respectively, after the Reorganization;
WHEREAS, the Reorganization with respect to Parkstone's Prime Obligations Fund,
U.S. Government Obligations Fund, Tax-Free Fund, Bond Fund, Limited Maturity
Bond Fund, Intermediate Government Obligations Fund, Equity Income Fund, Small
Capitalization Fund, International Discovery Fund, Balanced Allocation Fund and
National Tax Exempt Bond Fund (the "Reorganizing Funds") shall occur on a date
that is the same or prior to the Reorganization with respect to the Continuing
Funds;
WHEREAS, the parties intend that the transfers of assets, assumptions of
liabilities, and distributions of A Shares, B Shares or I Shares, as the case
may be, be treated as tax-free reorganizations under Section 368(a)(1)(C),
368(a)(1)(D), or 368(a)(1)(F) of the Internal Revenue Code of 1986, as amended
(the "Code"); and
WHEREAS, the parties intend that in connection with the Reorganization each of
the Parkstone portfolios shall be terminated and Parkstone shall be terminated
under state law and deregistered as described in this Agreement.
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements hereinafter set forth and subject to the terms and
conditions hereof, and intending to be legally bound hereby, Armada and
Parkstone agree as follows:
I. Transfer of Assets of Parkstone.
1.01(a) At the Effective Time of the Reorganization (as defined in Article VIII)
with respect to each of the Parkstone portfolios (each, an "Acquired Fund"), all
property of every description, and all interests, rights, privileges and powers
of each Acquired Fund other than cash in an amount necessary to pay any unpaid
dividends and distributions as provided in Article IV(g) (such assets, the
"Acquired Fund Assets") shall be transferred and conveyed by such Acquired Fund
to Armada on behalf of one of its portfolios as set forth in Section 1.02 (each,
an "Acquiring Fund"), and shall be accepted by Armada on behalf of such
Acquiring Fund, and Armada, on behalf of such Acquiring Fund, shall assume all
known liabilities whether accrued, absolute, contingent or otherwise, of such
Acquired Fund reflected in the calculation of such Acquired Fund's net asset
value (the "Acquired Fund Liabilities"), so that at and after the Effective Time
of the Reorganization with respect to such Acquired Fund: (i) all Acquired Fund
Assets shall become and be the assets of its Acquiring Fund; and (ii) all
Acquired Fund Liabilities shall attach to its Acquiring Fund and may thereafter
be enforced against such Acquiring Fund as if the same had been incurred by it.
Without limiting the generality of the foregoing, the Acquired Fund Assets shall
include all property and assets of any nature whatsoever, including, without
limitation, all cash, cash equivalents, securities, claims and receivables
(including dividend and interest receivables) owned by an Acquired Fund, and
(subject to Section 1.01(b)) any deferred or prepaid expenses shown as an asset
on an Acquired Fund's books, at the Effective Time of the Reorganization of such
Acquired Fund, and all good will, all other intangible property and all books
and records belonging to an Acquired Fund. Recourse by any person for the
Acquired Fund Liabilities assumed by an Acquiring Fund shall, at and after the
Effective Time of the Reorganization of such Acquired Fund, be limited to such
Acquiring Fund. All ownership interest in and rights to use of the name
"Parkstone" shall become the property of Armada at the Effective Time of the
Reorganization of the Continuing Funds. At that time, Parkstone shall adopt a
new name that does not include the name "Parkstone" or any name similar to it.
(b) Notwithstanding Section 1.01(a), unamortized organizational expenses of the
Reorganizing Funds shall not be transferred or assumed hereunder. The parties
have been advised that such expenses will be paid to such Reorganizing Funds by
one or
A-3
<PAGE> 60
more third parties and will be eliminated from the balance sheets of such
Reorganizing Funds prior to the applicable Effective Time of the Reorganization
of the Reorganizing Funds.
1.02 The assets of each Acquired Fund shall be acquired by the Acquiring Fund
identified below opposite its name, and the holders of each class of shares of
such Acquired Fund shall receive the class of shares of beneficial interest of
the Acquiring Fund identified below opposite the name of such class:
<TABLE>
<CAPTION>
PARKSTONE FUNDS AND CLASSES ARMADA FUNDS AND CLASSES
- --------------------------- ------------------------
<S> <C>
Prime Obligations Fund Money Market Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
U.S. Government Obligations Fund Government Money Market Fund
Investor A Shares A Shares
Institutional Shares I Shares
Tax-Free Fund Tax Exempt Money Market Fund
Investor A Shares A Shares
Institutional Shares I Shares
Bond Fund Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Limited Maturity Bond Fund Limited Maturity Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Intermediate Government Obligations Fund Intermediate Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Equity Income Fund Equity Income Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Small Capitalization Fund Small Cap Growth Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
International Discovery Fund International Equity Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Balanced Allocation Fund Balanced Allocation Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Large Capitalization Fund Large Cap Ultra Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
National Tax Exempt Bond Fund National Tax Exempt Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
</TABLE>
A-4
<PAGE> 61
<TABLE>
<CAPTION>
PARKSTONE FUNDS AND CLASSES ARMADA FUNDS AND CLASSES
- --------------------------- ------------------------
<S> <C>
U.S. Government Income Fund U.S. Government Income Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Mid Capitalization Fund Mid Cap Growth Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Michigan Municipal Bond Fund Michigan Municipal Bond Fund
Investor A Shares A Shares
Investor B Shares B Shares
Institutional Shares I Shares
Treasury Fund Treasury Plus Money Market Fund
Investor A Shares A Shares
Institutional Shares I Shares
</TABLE>
In connection with the Reorganization, the Board of Trustees of Armada has
adopted resolutions authorizing the change of name of the Enhanced Income Fund
to the Limited Maturity Bond Fund. This change will be effected prior to, on or
about the Effective Time of the Reorganization with respect to such Acquired
Fund.
1.03 In exchange for the transfer of the Acquired Fund Assets and the assumption
of the Acquired Fund Liabilities, Armada shall simultaneously issue at the
applicable Effective Time of the Reorganization to each Acquired Fund a number
of full and fractional shares to the third decimal place, of the Acquiring Fund
specified in Section 1.02 and of the class or classes identified in Section
1.02, all determined and adjusted as provided in this Agreement. For each class
of shares, the shares of the Acquiring Funds so issued will have an aggregate
net asset value equal to the value of the Acquired Fund Assets, net of the
Acquired Fund Liabilities, that are represented by the class of shares of the
Acquired Fund, the holders of which shall receive such class of shares of the
Acquiring Fund, as specified in Section 1.02, all determined and adjusted as
provided in this Agreement.
1.04 The net asset value of each class of shares of the Acquiring Funds and the
net asset value of each class of shares of the Acquired Funds shall be
determined as of the applicable Valuation Time with respect to each Acquired
Fund specified in Article III.
1.05 The net asset value of each class of shares of each Acquiring Fund shall be
computed in the manner set forth in such Acquiring Fund's then current
prospectuses under the Securities Act of 1933, as amended (the "1933 Act"). The
net value of the Acquired Fund Assets to be transferred by the Parkstone
portfolios shall be computed by Parkstone and shall be subject to adjustment by
an amount, if any, agreed to by Armada and Parkstone. In determining the value
of the securities transferred by the Acquired Funds to the Acquiring Funds, each
security shall be priced in accordance with the policies and procedures of
Armada described in its then current prospectuses and statements of additional
information and adopted by Armada's Board of Trustees, which are and shall be
consistent with the policies now in effect for Parkstone. For such purposes,
price quotations and the security characteristics relating to establishing such
quotations shall be determined by Armada, provided that such determination shall
be subject to the approval of Parkstone.
The value of the Acquired Fund Assets of the Parkstone Prime Obligations Fund,
Treasury Fund, U.S. Government Obligations Fund and Tax-Free Fund (each, a
"Parkstone Money Market Fund") and the value of the shares of the corresponding
Acquiring Funds for purposes of sales and redemptions shall be based on the
amortized cost valuation procedures that have been adopted by the Board of
Trustees of Parkstone and the Board of Trustees of Armada, respectively. Any
provision in this Agreement to the contrary notwithstanding, if the difference
between the per share net asset values of a Parkstone Money Market Fund and its
corresponding Acquiring Fund equals or exceeds $.0025 at the applicable
Valuation Time, as computed by using such market values in accordance with the
policies and procedures established by Armada (or as otherwise mutually
determined by the Board of Trustees of Parkstone and the Board of Trustees of
Armada), either the Board of Trustees of Parkstone or the Board of Trustees of
Armada shall have the right to postpone the applicable Valuation Time and the
applicable Effective Time of the Reorganization with respect to such Parkstone
Money Market Fund until such time as the per share difference is less than
$.0025.
II. Liquidating Distributions and Termination of Parkstone. Immediately after
the Effective Time of the Reorganization with respect to each Acquired Fund,
such Acquired Fund shall distribute in complete liquidation pro rata to the
record holders of
A-5
<PAGE> 62
each class of its shares at the applicable Effective Time of the Reorganization
the shares of the class of the Acquiring Fund identified in Section 1.02 to be
received by the record holders of such class of such Acquired Fund. In addition,
each shareholder of record of an Acquired Fund shall have the right to receive
any unpaid dividends or other distributions which were declared before the
applicable Effective Time of the Reorganization with respect to the shares of an
Acquired Fund that are held by the shareholder at the applicable Effective Time
of the Reorganization. In accordance with instructions it receives from
Parkstone, Armada shall record on its books the ownership of each class of
shares of each Acquiring Fund by the record holders of the class of shares of
the Acquired Fund identified in Section 1.02. All of the issued and outstanding
shares of each class of each Acquired Fund shall be redeemed and canceled on the
books of Parkstone at the Effective Time of the Reorganization of such Acquired
Fund and shall thereafter represent only the right to receive the class of
shares of the Acquiring Fund identified in Section 1.02, and any dividends and
distributions declared pursuant to Article IV(g), and the Acquired Fund's
transfer books shall be closed permanently. As soon as practicable after the
Effective Time of the Reorganization with respect to the Continuing Funds,
Parkstone shall make all filings and take all other steps as shall be necessary
and proper to effect its complete dissolution, and shall file an application
pursuant to Section 8(f) of the 1940 Act for an order declaring that it has
ceased to be an investment company and any and all documents that may be
necessary to terminate its existence under state law. After the Effective Time
of the Reorganization with respect to the Continuing Funds, Parkstone shall not
conduct any business except in connection with its liquidation, dissolution, and
deregistration.
III. Valuation Times. Subject to Section 1.05 hereof,
(a) the Valuation Time for the Reorganization with respect to the
Reorganizing Funds shall be 4:00 P.M., Eastern Time, on the business
day preceding the Effective Time of the Reorganization, or such other
time and on such date as may be agreed in writing by the duly
authorized officers of both parties hereto,
(b) the Valuation Time for the Reorganization with respect to each of the
Continuing Funds, other than the Treasury Fund, shall be 4:00 p.m.,
Eastern Time, on the business day preceding the Effective Time of the
Reorganization, or such other time and on such date as may be agreed
in writing by the duly authorized officers of both parties hereto, and
(c) the Valuation Time for the Reorganization with respect to the Treasury
Fund shall be 4:00 p.m., Eastern Time, on the business day preceding
the Effective Time of the Treasury Fund Transaction, or such other
time and on such date as may be agreed in writing by the duly
authorized officers of both parties hereto, which date shall be not
less than seven calendar days following the Valuation Time for the
Reorganization with respect to the Reorganizing and Continuing Funds.
IV. Certain Representations, Warranties and Agreements of Parkstone. Parkstone,
on behalf of itself and each Acquired Fund, represents and warrants to, and
agrees with, Armada as follows:
(a) It is a Massachusetts business trust duly created pursuant to its
Declaration of Trust for the purpose of acting as a management
investment company under the 1940 Act and is validly existing under
the laws of, and duly authorized to transact business in, the
Commonwealth of Massachusetts. It is registered with the Securities
and Exchange Commission (the "SEC") as an open-end management
investment company under the 1940 Act and such registration is in full
force and effect.
(b) It has power to own all of its properties and assets and, subject to
the approvals of shareholders referred to herein, to carry out and
consummate the transactions contemplated hereby, and has all necessary
federal, state and local authorizations to carry on its business as
now being conducted and to consummate the transactions contemplated by
this Agreement.
(c) This Agreement has been duly authorized, executed and delivered by
Parkstone, and represents Parkstone's valid and binding contract,
enforceable in accordance with its terms, subject as to enforcement to
bankruptcy, insolvency, reorganization, arrangement, moratorium, and
other similar laws of general applicability relating to or affecting
creditors' rights and to general principles of equity. The execution
and delivery of this Agreement does not and will not, and the
consummation of the transactions contemplated by this Agreement will
not, violate Parkstone's Declaration of Trust or Code of Regulations
or any agreement or arrangement to which it is a party or by which it
is bound.
(d) Each Acquired Fund has elected to qualify and has qualified as a
regulated investment company under Part I of Subchapter M of the Code,
as of and since its first taxable year; has been a regulated
investment company under
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such Part of the Code at all times since the end of its first taxable
year when it so qualified; and qualifies and shall continue to qualify
as a regulated investment company until the Effective Time of the
Reorganization with respect to such Acquired Fund.
(e) All federal, state, local and foreign income, profits, franchise,
sales, withholding, customs, transfer and other taxes, including
interest, additions to tax and penalties (collectively, "Taxes")
relating to the Acquired Fund Assets due or properly shown to be due
on any return filed by any Acquired Fund with respect to taxable
periods ending on or prior to, and the portion of any interim period
up to, the date hereof have been fully and timely paid or provided
for; and there are no levies, liens, or other encumbrances relating to
Taxes existing, threatened or pending with respect to the Acquired
Fund Assets.
(f ) The financial statements of each Parkstone Portfolio listed in
Section 1.02 for the fiscal year ended May 31, 1999, examined by
PricewaterhouseCoopers LLP, and for the six month period ended
November 30, 1999, copies of which have been previously furnished to
Armada, present fairly the financial position of each Acquired Fund
as of the dates indicated and the results of its operations for the
year and period then ended as of such dates, in conformity with
generally accepted accounting principles.
(g) Prior to the Valuation Time applicable to the Reorganizing Funds, each
of the Reorganizing Funds shall have declared a dividend or dividends,
with a record date and ex-dividend date prior to such Valuation Time,
which, together with all previous dividends, shall have the effect of
distributing to its shareholders all of its net investment company
income, if any, for the taxable periods or years ended on or before
May 31, 1999 and for the period from said date to and including the
Effective Time of the Reorganization applicable to the Reorganizing
Funds (computed without regard to any deduction for dividends paid),
and all of its net capital gain, if any, realized in taxable periods
or years ended on or before May 31, 1999 and in the period from said
date to and including the Effective Time of the Reorganization
applicable to the Reorganizing Funds.
(h) At both the Valuation Time and the Effective Time of the
Reorganization with respect to each Acquired Fund, there shall be no
known liabilities of such Acquired Fund, whether accrued, absolute,
contingent or otherwise, not reflected in the net asset values per
share of its outstanding classes of shares.
(i) There are no legal, administrative or other proceedings pending or, to
Parkstone's knowledge threatened, against Parkstone or an Acquired
Fund which could result in liability on the part of Parkstone or an
Acquired Fund.
(j) Subject to the approvals of shareholders referred to herein, at both
the Valuation Time and the Effective Time of the Reorganization with
respect to each Acquired Fund, it shall have full right, power and
authority to sell, assign, transfer and deliver the Acquired Fund
Assets of such Acquired Fund and, upon delivery and payment for the
Acquired Fund Assets as contemplated herein, an Acquiring Fund shall
acquire good and marketable title thereto, free and clear of all liens
and encumbrances, and subject to no restrictions on the ownership or
transfer thereof (except as imposed by federal or state securities
laws).
(k) No consent, approval, authorization or order of any court or
governmental authority is required for the consummation by Parkstone
of the transactions contemplated by this Agreement, except such as may
be required under the 1933 Act, the Securities Exchange Act of 1934,
as amended ("1934 Act"), the 1940 Act, the rules and regulations under
those Acts, and state securities laws.
(l) With respect to materials and information provided by Parkstone, the
registration statement filed by Armada on Form N-14 relating to the
shares of certain Acquiring Funds that will be registered with the SEC
pursuant to this Agreement, which, without limitation, shall include a
proxy statement of Parkstone and the prospectuses of Armada with
respect to the transactions contemplated by this Agreement, and any
supplement or amendment thereto or to the documents contained or
incorporated therein by reference (the "N-14 Registration Statement"),
on the effective date of the N-14 Registration Statement, at the time
of any shareholders' meeting referred to herein and at each Effective
Time of the Reorganization: (i) shall comply in all material respects
with the provisions of the 1933 Act, the 1934 Act and the 1940 Act,
the rules and regulations thereunder, and state securities laws, and
(ii) shall not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to
make the statements therein not misleading.
(m) All of the issued and outstanding shares of each class of each Acquired
Fund have been duly and validly issued, are fully paid and
non-assessable, and were offered for sale and sold in conformity with
all applicable federal and
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state securities laws, and no shareholder of an Acquired Fund has any
preemptive right of subscription or purchase in respect of such
shares.
(n) Parkstone shall not sell or otherwise dispose of any shares of an
Acquiring Fund to be received in the transactions contemplated herein,
except in distribution to its shareholders as contemplated herein.
V. Certain Representations, Warranties and Agreements of Armada. Armada, on
behalf of itself and each Acquiring Fund, represents and warrants to, and agrees
with, Parkstone as follows:
(a) It is a Massachusetts business trust duly created pursuant to its
Declaration of Trust for the purpose of acting as a management
investment company under the 1940 Act and is validly existing under
the laws of, and duly authorized to transact business in, the
Commonwealth of Massachusetts. It is registered with the SEC as an
open-end management investment company under the 1940 Act and such
registration is in full force and effect.
(b) It has power to own all of its properties and assets and to carry out
and consummate the transactions contemplated herein, and has all
necessary federal, state and local authorizations to carry on its
business as now being conducted and to consummate the transactions
contemplated by this Agreement.
(c) This Agreement has been duly authorized, executed and delivered by
Armada, and represents Armada's valid and binding contract,
enforceable in accordance with its terms, subject as to enforcement to
bankruptcy, insolvency, reorganization, arrangement, moratorium, and
other similar laws of general applicability relating to or affecting
creditors' rights and to general principles of equity. The execution
and delivery of this Agreement did not, and the consummation of the
transactions contemplated by this Agreement will not, violate Armada's
Declaration of Trust or Code of Regulations or any agreement or
arrangement to which it is a party or by which it is bound.
(d) Each Acquiring Fund has elected or will elect to qualify, and each of
the first eleven Acquiring Funds listed in Section 1.02 has qualified,
as a regulated investment company under Part I of Subchapter M of the
Code, as of and since its first taxable year; each of the first eleven
Acquiring Funds listed in Section 1.02 has been a regulated investment
company under such Part of the Code at all times since the end of its
first taxable year when it so qualified and intends to continue to
qualify as a regulated investment company.
(e) The financial statements of each of the first eleven Acquiring Funds
listed in Section 1.02 for its fiscal periods ended May 31, 1999,
audited by Ernst & Young LLP, and for the six-month period ended
November 30, 1999, copies of which have been previously furnished to
Parkstone, present fairly the financial position of each such
Acquiring Fund as of the dates indicated and the results of its
operations for the year and period ended as of such dates, in
conformity with generally accepted accounting principles.
(f ) At both the Valuation Time and the Effective Time of the
Reorganization with respect to each Acquiring Fund, there shall be no
known liabilities of such Acquiring Fund, whether accrued, absolute,
contingent or otherwise, not reflected in the net asset values per
share of its outstanding classes to be issued pursuant to this
Agreement.
(g) There are no legal, administrative or other proceedings pending or, to
its knowledge, threatened against Armada or an Acquiring Fund which
could result in liability on the part of Armada or an Acquiring Fund.
(h) No consent, approval, authorization or order of any court or
governmental authority is required for the consummation by Armada of
the transactions contemplated by this Agreement, except such as may be
required under the 1933 Act, the 1934 Act, the 1940 Act, the rules and
regulations under those Acts, and state securities laws.
(i) The N-14 Registration Statement on its effective date, at the time of
any shareholders' meetings referred to herein and at each Effective
Time of the Reorganization, except with respect to information and
materials provided by Parkstone: (i) shall comply in all material
respects with the provisions of the 1933 Act, the 1934 Act and the
1940 Act, the rules and regulations thereunder, and state securities
laws, and (ii) shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.
(j) The shares of each class of each Acquiring Fund to be issued and
delivered to an Acquired Fund for the account of record holders of
shares of an Acquired Fund, pursuant to the terms hereof, shall have
been duly authorized as of the Effective Time of the Reorganization
applicable to such Acquiring Fund and, when so issued and delivered,
shall be registered under the 1933 Act and under applicable state
securities laws, duly and validly issued, fully paid
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and non-assessable, and no shareholder of Armada shall have any
preemptive right of subscription or purchase in respect thereto.
VI. Shareholder Action on Behalf of the Acquired Funds.
6.01 As soon as practicable after the effective date of the N-14 Registration
Statement, but in any event prior to the Effective Time of the Reorganization
applicable to the Reorganizing Funds and as a condition to the Reorganization,
the Board of Trustees of Parkstone shall call, and Parkstone shall hold, a
meeting of the shareholders of the Acquired Funds for the purpose of considering
and voting upon:
(a) Approval of this Agreement and the transactions contemplated hereby,
including, without limitation:
(i) The transfer of the Acquired Fund Assets belonging to each Acquired
Fund to an Acquiring Fund, and the assumption by such Acquiring
Fund of the Acquired Fund Liabilities of such Acquired Fund, in
exchange for a class or classes of shares of an Acquiring Fund, as
set forth in Section 1.02.
(ii) The liquidation of each Acquired Fund through the distribution to
its record holders of shares of the class or classes of shares of
an Acquiring Fund as described in this Agreement.
(b) Such other matters as may be determined by the Boards of Trustees or
authorized officers of the parties.
6.02 Approval of this Reorganization Agreement by the shareholders of the
Acquired Funds shall constitute the waiver of the application of any fundamental
policy of such Acquired Funds that might be deemed to prevent them from taking
the actions necessary to effectuate the Reorganization as described, and such
policies, if any, shall be deemed to have been amended accordingly.
VII. N-14 Registration Statement and Proxy Solicitation Materials. Armada shall
prepare and file the N-14 Registration Statement under the 1933 Act, and
Parkstone shall file the combined prospectus/proxy statement contained therein
under the 1934 Act and 1940 Act proxy rules, with the SEC as promptly as
practicable. Each of Armada and Parkstone has cooperated and shall continue to
cooperate with the other, and has furnished and shall continue to furnish the
other with the information relating to itself that is required by the 1933 Act,
the 1934 Act, the 1940 Act, the rules and regulations under each of those Acts
and state securities laws, to be included in the N-14 Registration Statement.
VIII. Effective Times of the Reorganization. Delivery of the Acquired Fund
Assets of each Acquired Fund and the shares of the classes of its Acquiring Fund
to be issued pursuant to Article I and the liquidation of each Acquired Fund
pursuant to Article II shall occur at the opening of business on the next
business day following the Valuation Time applicable to such Acquired Fund, or
on such other date, and at such place and time and date, as may be determined by
the President or any Vice President of each party hereto. The respective date
and time at which such actions are taken with respect to an Acquired Fund are
referred to herein as the "Effective Time of the Reorganization." To the extent
any Acquired Fund Assets are, for any reason, not transferred at the applicable
Effective Time of the Reorganization, Parkstone shall cause such Acquired Fund
Assets to be transferred in accordance with this Agreement at the earliest
practicable date thereafter.
IX. Armada Conditions. The obligations of Armada hereunder with respect to each
Acquired Fund shall be subject to the following conditions precedent:
(a) This Agreement and the transactions contemplated by this Agreement
shall have been approved by the shareholders of each Acquired Fund, in
the manner required by law.
(b) With respect to each Acquired Fund, the Parkstone Board of Trustees,
including a majority of Trustees who are not "interested persons" as
defined under the 1940 Act, has determined that the transactions
contemplated by this Agreement are in the best interests of each
Acquired Fund and that the interests of the existing shareholders of
each Acquired Fund would not be diluted as a result of such
transactions.
(c) Parkstone shall have duly executed and delivered to Armada such bills
of sale, assignments, certificates and other instruments of transfer
("Transfer Documents") as may be necessary or desirable to transfer
all right, title and interest of Parkstone and such Acquired Fund in
and to the Acquired Fund Assets of such Acquired Fund. The Acquired
Fund Assets shall be accompanied by all necessary state stock transfer
stamps or cash for the appropriate purchase price therefor.
(d) All representations and warranties of Parkstone made in this Agreement
shall be true and correct in all material respects as if made at and
as of each Valuation Time and each Effective Time of the
Reorganization. As of the Valuation Time and the Effective Time of the
Reorganization applicable to each Acquired Fund, there shall have
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been no material adverse change in the financial position of such
Acquired Fund since November 30, 1999 other than those changes
incurred in the ordinary course of business as an investment company.
No action, suit or other proceeding shall be threatened or pending
before any court or governmental agency in which it is sought to
restrain or prohibit, or obtain damages or other relief in connection
with, this Agreement or the transactions contemplated herein.
(e) Armada shall have received an opinion of Drinker, Biddle & Reath, LLP
addressed to Armada in form reasonably satisfactory to it and dated
the Effective Time of the Reorganization applicable to each Acquired
Fund, substantially to the effect that:
(i) Parkstone is a Massachusetts business trust duly organized and
validly existing under the laws of the Commonwealth of
Massachusetts;
(ii) the shares of such Acquired Fund outstanding at such time are duly
authorized, validly issued, fully paid and non-assessable by such
Acquired Fund, and to such counsel's knowledge, no shareholder of
such Acquired Fund has any option, warrant or pre-emptive right to
subscription or purchase in respect thereof;
(iii) this Agreement and the Transfer Documents have been duly
authorized, executed and delivered by Parkstone and represent
legal, valid and binding contracts, enforceable in accordance
with their terms, subject to the effect of bankruptcy,
insolvency, moratorium, fraudulent conveyance and similar laws
relating to or affecting creditors' rights generally and court
decisions with respect thereto, but such counsel shall not be
required to express an opinion with respect to the application of
equitable principles in any proceeding, whether at law or in
equity, or with respect to the provisions of this Agreement
intended to limit liability for particular matters to an Acquired
Fund and its assets;
(iv) the execution and delivery of this Agreement did not, and the
consummation of the transactions contemplated by this Agreement
will not, violate the Declaration of Trust or Code of Regulations
of Parkstone or any material agreement known to such counsel to
which Parkstone is a party or by which Parkstone is bound; and
(v) to such counsel's knowledge, no consent, approval, authorization
or order of any court or governmental authority is required for
the consummation by Parkstone of the transactions contemplated by
this Agreement, except such as have been obtained under the 1933
Act, the 1934 Act, the 1940 Act, the rules and regulations under
those Acts and such as may be required under the state securities
laws. Such opinion may rely on the opinion of other counsel to the
extent set forth in such opinion, provided such other counsel is
reasonably acceptable to Armada.
(f) Armada shall have received an opinion of Drinker Biddle & Reath LLP,
addressed to Armada and Parkstone in form reasonably satisfactory to
them and dated the Effective Time of the Reorganization applicable to
each Acquired Fund, substantially to the effect that for federal
income tax purposes
(i) the transfers of all of the Acquired Fund Assets hereunder, and
the assumption by its Acquiring Fund of Acquired Fund Liabilities,
in exchange for shares of each class of such Acquiring Fund, and
the distribution of said shares to the shareholders of such
Acquired Fund, as provided in this Agreement, will each constitute
a reorganization within the meaning of Section 368(a)(1)(C),
368(a)(1)(D) or 368(a)(1)(F) of the Code and with respect to each
reorganization, the Acquired Fund and the Acquiring Fund will each
be considered "a party to a reorganization" within the meaning of
Section 368(b) of the Code;
(ii) in accordance with Sections 361(a), 361(c)(1) and 357(a) of the
Code, no gain or loss will be recognized by such Acquired Fund as
a result of such transactions;
(iii) in accordance with Section 1032 of the Code, no gain or loss will
be recognized by an Acquiring Fund as a result of such
transactions;
(iv) in accordance with Section 354(a)(1) of the Code, no gain or loss
will be recognized by the shareholders of such Acquired Fund on
the distribution to them by such Acquired Fund of shares of any
class of an Acquiring Fund in exchange for their shares of the
corresponding class of the Acquired Fund;
(v) in accordance with Section 358(a)(1) of the Code, the aggregate
basis of Acquiring Fund shares received by each shareholder of any
class of an Acquired Fund will be the same as the aggregate basis
of the shareholder's Acquired Fund shares immediately prior to the
transactions;
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(vi) in accordance with Section 362(b) of the Code, the basis of the
Acquired Fund Assets to any Acquiring Fund will be the same as the
basis of such Acquired Fund Assets in the hands of the
corresponding Acquired Fund immediately prior to the exchange;
(vii) in accordance with Section 1223 of the Code, a shareholder's
holding period for Acquiring Fund shares will be determined by
including the period for which the shareholder held the shares of
an Acquired Fund exchanged therefor, provided that the
shareholder held such shares of an Acquired Fund as a capital
asset; and
(viii) in accordance with Section 1223 of the Code, the holding period
of an Acquiring Fund with respect to the Acquired Fund Assets
will include the period for which such Acquired Fund Assets were
held by an Acquired Fund.
(g) The SEC shall not have issued any unfavorable advisory report under
Section 25(b) of the 1940 Act or instituted any proceeding seeking to
enjoin consummation of the transactions contemplated by this Agreement
under Section 25(c) of the 1940 Act.
(h) The N-14 Registration Statement shall have become effective under the
1933 Act and no stop order suspending such effectiveness shall have
been instituted or, to the knowledge of Parkstone or Armada,
contemplated by the SEC and the parties shall have received all
permits and other authorizations necessary under state securities laws
to consummate the transactions contemplated by this Agreement.
(i) The President of Parkstone shall have certified that Parkstone has
performed and complied in all material respects with each of its
agreements and covenants required by this Agreement to be performed or
complied with by it prior to or at each Valuation Time and each
Effective Time of the Reorganization.
(j) Parkstone shall have delivered or caused to be delivered to Armada
each account, book, record or other document of Parkstone applicable
to such Acquired Fund which is required to be maintained by Section
31(a) of the 1940 Act and Rules 31a-1 to 31a-3 thereunder (regardless
of what person possesses the same). Parkstone has instructed its
service contractors to provide Armada upon request with access to and
copies of all documents belonging to Parkstone.
(k) With respect to the Reorganization of the Continuing Funds, the
Reorganization of all of the Reorganizing Funds shall have been
consummated.
X. Parkstone Conditions. The obligations of Parkstone hereunder with respect to
each Acquired Fund shall be subject to the following conditions precedent:
(a) This Agreement and the transactions contemplated by this Agreement
shall have been approved by the shareholders of each Acquired Fund, in
the manner required by law.
(b) With respect to each Acquiring Fund, the Armada Board of Trustees,
including a majority of Trustees who are not "interested persons" as
defined under the 1940 Act, has determined that the transactions
contemplated by this Agreement are in the best interests of each
Acquiring Fund and that the interests of the existing shareholders of
each Acquiring Fund would not be diluted as a result of such
transactions.
(c) All consents, orders, permits, and exemptions of federal, state and
local regulatory authorities (including those of the SEC and of state
securities authorities) deemed necessary by Parkstone to permit
consummation, in all material respects, of the transactions
contemplated hereby shall have been obtained, except where failure to
obtain any such consent, order, or permit would not involve a risk of
a materially adverse effect on the assets or properties of Parkstone.
(d) All representations and warranties of Armada made in this Agreement
shall be true and correct in all material respects as if made at and
as of each Valuation Time and each Effective Time of the
Reorganization. As of the Valuation Time and the Effective Time of the
Reorganization applicable to each Acquired Fund, there shall have been
no material adverse change in the financial condition of its Acquiring
Fund since November 30, 1999 other than those changes incurred in the
ordinary course of business as an investment company. No action, suit
or other proceeding shall be threatened or pending before any court or
governmental agency in which it is sought to restrain or prohibit, or
obtain damages or other relief in connection with, this Agreement or
the transactions contemplated herein.
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(e) Parkstone shall have received an opinion of Drinker Biddle & Reath
LLP, addressed to Parkstone in form reasonably satisfactory to it and
dated the Effective Time of the Reorganization applicable to each
Acquired Fund, substantially to the effect that:
(i) Armada is a Massachusetts business trust duly organized and validly
existing under the laws of the Commonwealth of Massachusetts and is
qualified to do business and in good standing in each state in
which such qualification is required;
(ii) the shares of each class of each Acquiring Fund to be delivered at
such time to an Acquired Fund as provided for by this Agreement
are duly authorized and upon delivery will be validly issued,
fully paid and non-assessable by such Acquiring Fund and to such
counsel's knowledge, no shareholder of an Acquiring Fund has any
option, warrant or pre-emptive right to subscription or purchase
in respect thereof;
(iii) this Agreement has been duly authorized, executed and delivered by
Armada and represents a legal, valid and binding contract,
enforceable in accordance with its terms, subject to the effect of
bankruptcy, insolvency, moratorium, fraudulent conveyance and
similar laws relating to or affecting creditors' rights generally
and court decisions with respect thereto, but such counsel shall
not be required to express an opinion with respect to the
application of equitable principles in any proceeding, whether at
law or in equity, or with respect to the provisions of this
Agreement intended to limit liability for particular matters to an
Acquiring Fund and its assets;
(iv) the execution and delivery of this Agreement did not, and the
consummation of the transactions contemplated by this Agreement
will not, violate the Declaration of Trust or Code of Regulations
of Armada, or any material agreement known to such counsel to
which Armada is a party or by which Armada is bound; and
(v) to such counsel's knowledge no consent, approval, authorization or
order of any court or governmental authority is required for the
consummation by Armada of the transactions contemplated by this
Agreement, except such as have been obtained under the 1933 Act,
the 1934 Act, the 1940 Act, the rules and regulations under those
Acts and such as may be required under the state securities laws.
Such opinion may rely on the opinion of other counsel to the extent
set forth in such opinion, provided such other counsel is
reasonably acceptable to Parkstone.
(f ) Parkstone shall have received an opinion of Drinker Biddle & Reath
LLP, addressed to Armada and Parkstone in the form reasonably
satisfactory to them and dated the Effective Time of the
Reorganization applicable to each Acquired Fund, with respect to the
matters specified in Section IX(f ).
(g) The N-14 Registration Statement shall have become effective under the
1933 Act and no stop order suspending such effectiveness shall have
been instituted, or to the knowledge of Parkstone or Armada,
contemplated by the SEC and the parties shall have received all
permits and other authorizations necessary under state securities laws
to consummate the transactions contemplated by this Agreement.
(h) The SEC shall not have issued any unfavorable advisory report under
Section 25(b) of the 1940 Act or instituted any proceeding seeking to
enjoin consummation of the transactions contemplated by this Agreement
under Section 25(c) of the 1940 Act.
(i) The President of Armada shall have certified that Armada has performed
and complied in all material respects with each of its agreements and
covenants required by this Agreement to be performed or complied with
by it prior to or at each Valuation Time and each Effective Time of
the Reorganization.
(j) With respect to the Reorganization of the Continuing Funds, the
Reorganization of all of the Reorganizing Funds shall have been
consummated.
XI. Tax Documents. Parkstone shall deliver to Armada at each Effective Time of
the Reorganization confirmations or other adequate evidence as to the adjusted
tax basis of the Acquired Fund Assets then delivered to an Acquiring Fund in
accordance with the terms of this Agreement.
XII. Finder's Fees. Each party represents and warrants to each of the other
parties hereto that there is no person who is entitled to any finder's or other
similar fee or commission arising out of the transactions contemplated by this
Agreement.
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XIII. Announcements. Any announcements or similar publicity with respect to
this Agreement or the transactions contemplated herein shall be at such time and
in such manner as the parties shall agree; provided, that nothing herein shall
prevent any party upon notice to the other parties from making such public
announcements as such party's counsel may consider advisable in order to satisfy
the party's legal and contractual obligations in such regard.
XIV. Further Assurances. Subject to the terms and conditions herein provided,
and any applicable laws, rules or regulations, each of the parties hereto shall
use its best efforts to take, or cause to be taken, such action, to execute and
deliver, or cause to be executed and delivered, such additional documents and
instruments, and to do, or cause to be done, all things necessary, proper or
advisable under the provisions of this Agreement and under applicable law to
consummate and make effective the transactions contemplated by this Agreement.
XV. Termination of Representations and Warranties. The representations and
warranties of the parties set forth in this Agreement shall terminate at the
Effective Time of the Reorganization of the Continuing Funds.
XVI. Termination of Agreement.
16.01 This Agreement may be terminated by a party at any time at or prior to (i)
the Effective Time of the Reorganization of the Reorganizing Funds, or (ii) with
respect to the Continuing Funds and the corresponding Acquiring Funds at any
time at or prior to the Effective Time of the Reorganization of the Continuing
Funds, by the Board of Trustees of Armada or the Board of Trustees of Parkstone,
as provided below:
(a) By Armada if the conditions set forth in Article IX are not satisfied
as specified in said Article;
(b) By Parkstone if the conditions set forth in Article X are not satisfied
as specified in said Article;
(c) By the mutual consent of the parties.
16.02 If a party terminates this Agreement as to any investment portfolio for
any reason specified in Section 16.01 hereof, this Agreement will become null
and void without any liability of either party or any of their investment
portfolios to the other; provided, however, that if such termination is by
Armada pursuant to Section 16.01(a) as a result of a breach by Parkstone of any
of its representations, warranties or covenants in this Agreement, or such
termination is by Parkstone pursuant to Section 16.01(b) as a result of a breach
by Armada of any of its representations, warranties or covenants in this
Agreement, nothing herein shall affect the non-breaching party's right to
damages on account of such other party's breach.
XVII. Amendment and Waiver. At any time prior to or (to the fullest extent
permitted by law) after approval of this Agreement by the shareholders of
Parkstone, (a) the parties hereto may, by written agreement authorized by their
respective Boards of Trustees, or their respective Presidents, and with or
without the approval of their shareholders, amend any of the provisions of this
Agreement, and (b) either party may waive any breach by the other party or the
failure to satisfy any of the conditions to its obligations (such waiver to be
in writing and authorized by the President or Vice President of the waiving
party with or without the approval of such party's shareholders).
XVIII. Governing Law. This Agreement and the transactions contemplated hereby
shall be governed, construed and enforced in accordance with the laws of the
Commonwealth of Massachusetts, without giving effect to the conflicts of law
principles otherwise applicable therein.
XIX. Successors and Assigns. This Agreement shall be binding upon the
respective successors and permitted assigns of the parties hereto. This
Agreement and the rights, obligations and liabilities hereunder may not be
assigned by either party without the consent of the other party.
XX. Beneficiaries. Nothing contained in this Agreement shall be deemed to
create rights in persons not parties hereto, other than the successors and
permitted assigns of the parties.
XXI. Parkstone Liability.
21.01 The names "The Parkstone Group of Funds" and "Trustees of The Parkstone
Group of Funds" refer respectively to the trust created and the trustees, as
trustees but not individually or personally, acting from time to time under a
Declaration of Trust dated March 25, 1987, which is hereby referred to and a
copy of which is on file at the office of the State Secretary of the
Commonwealth of Massachusetts and at the principal office of Parkstone. The
obligations of Parkstone entered into in the name or on behalf thereof by any of
the trustees, representatives or agents are made not individually, but in such
capacities, and are not binding upon any of the trustees, shareholders or
representatives of Parkstone personally, but bind only the trust property, and
all persons dealing with any portfolio of Parkstone must look solely to the
trust property belonging to such portfolio for the enforcement of any claims
against Parkstone.
A-13
<PAGE> 70
21.02 Both parties specifically acknowledge and agree that any liability of
Parkstone under this Agreement with respect to an Acquired Fund, or in
connection with the transactions contemplated herein with respect to an Acquired
Fund, shall be discharged only out of the assets of that Acquired Fund and that
no other portfolio of Parkstone shall be liable with respect thereto.
XXII. Armada Liability.
22.01 The names "Armada Funds" and "Board of Trustees of Armada Funds" refer
respectively to the trust created and the trustees, as trustees but not
individually or personally, acting from time to time under a Declaration of
Trust dated January 28, 1986, which is hereby referred to and a copy of which is
on file at the office of the State Secretary of the Commonwealth of
Massachusetts and at the principal office of Armada. The obligations of Armada
entered into in the name or on behalf thereof by any of the trustees,
representatives or agents are made not individually, but in such capacities, and
are not binding upon any of the trustees, shareholders or representatives of
Armada personally, but bind only the trust property, and all persons dealing
with any series of shares of Armada must look solely to the trust property
belonging to such series for the enforcement of any claims against Armada.
22.02 Both parties specifically acknowledge and agree that any liability of
Armada under this Agreement with respect to an Acquiring Fund, or in connection
with the transactions contemplated herein with respect to an Acquiring Fund,
shall be discharged only out of the assets of that Acquiring Fund and that no
other fund of Armada shall be liable with respect thereto.
XXIII. Indemnification and Insurance.
23.01(a) Each Acquired Fund will indemnify and hold harmless, out of its own
assets and no others, the corresponding Acquiring Fund and Armada's Trustees and
officers (for purposes of the Section, the "Indemnified Parties") against any
and all expenses, losses, claims, damages and liabilities at any time imposed
upon or reasonably incurred by any one or more of the Indemnified Parties in
connection with, arising out of, or resulting from any claim, action, suit or
proceeding in which any one or more of the Indemnified Parties may be involved
or with which any one or more of the Indemnified Parties may be threatened by
reason of any untrue statement or alleged untrue statement of a material fact
relating to Parkstone or any Acquired Fund contained in the Form N-14
Registration Statement, any Acquired Fund Prospectus or related Statement of
Additional Information, or any amendment or supplement to any of the foregoing,
or arising out of or based upon the omission or alleged omission to state in any
of the foregoing a material fact relating to Parkstone or any Acquired Fund
required to be stated therein or necessary to make the statements relating to
Parkstone or any Acquired Fund therein not misleading, including, without
limitation, any amounts paid by any one or more of the Indemnified Parties in a
reasonable compromise or settlement of any such claim, action, suit or
proceeding, or threatened claim, action, suit or proceeding made with the prior
consent of Parkstone.
(b) The Indemnified Parties will notify Parkstone in writing within ten days
after the receipt by any one or more of the Indemnified Parties of any notice of
legal process or any suit brought against or claim made against such Indemnified
Party as to any matters covered by this Section 23. Parkstone shall be entitled
to participate at its own expense in the defense of any claim, action, suit or
proceeding covered by this Section 23, or, if it so elects, to assume at its
expense by counsel satisfactory to the Indemnified Parties the defense of any
such claim, action, suit or proceeding, and if Parkstone elects to assume such
defense, the Indemnified Parties shall be entitled to participate in the defense
of any such claim, action, suit or proceeding at their own expense. The
obligation of each of the Acquired Funds under this Section 23 to indemnify and
hold harmless the Indemnified Parties shall constitute a guarantee of any
expenses, losses, claims, damages and liabilities required to be paid by it
under Section 23 without the necessity of the Indemnified Parties' first paying
the same.
23.02(a) Each Acquiring Fund will indemnify and hold harmless, out of its own
assets and no others, the corresponding Acquired Fund and Parkstone's Trustees
and officers (for purposes of this Section, the "Indemnified Parties") against
any and all expenses, losses, claims, damages and liabilities at any time
imposed upon or reasonably incurred by any one or more of the Indemnified
Parties in connection with, arising out of, or resulting from any claim, action,
suit or proceeding in which any one or more of the Indemnified Parties may be
involved or with which any one or more of the Indemnified Parties may be
threatened by reason of any untrue statement or alleged untrue statement of a
material fact relating to Armada or any Acquiring Fund contained in the Form
N-14 Registration Statement, any Acquiring Fund Prospectus or related Statement
of Additional Information, or any amendment or supplement to any of the
foregoing, or arising out of or based upon the omission or alleged omission to
state in any of the foregoing a material fact relating to Armada or any
Acquiring Fund required to be stated therein or necessary to make the statement
relating to Armada or any Acquiring Fund therein not misleading, including,
without limitation, any amounts paid by any one or more of the Indemnified
Parties in a
A-14
<PAGE> 71
reasonable compromise or settlement of any such claim, action, suit or
proceeding, or threatened claim, action, suit or proceeding made with the prior
consent of Armada.
(b) The Indemnified Parties will notify Armada in writing within ten days after
the receipt by any one or more of the Indemnified Parties of any notice of legal
process or any suit brought against or claim made against such Indemnified Party
as to any matters covered by this Section 23. Armada shall be entitled to
participate at its own expense in the defense of any claim, action, suit or
proceeding covered by this Section 23, or, if it so elects, the assume at its
expense by counsel satisfactory to the Indemnified Parties the defense of any
such claim, action, suit or proceeding, and, if Armada elects to assume such
defense, the Indemnified Parties shall be entitled to participate in the defense
of any such claim, action, suit or proceeding at their own expense. The
obligation of each of the Acquiring Funds under this Section 23 to indemnify and
hold harmless the Indemnified Parties shall constitute a guarantee of payment so
that the Acquiring Funds will pay in the first instance any expenses, losses,
claims, damages and liabilities required to be paid by it under this Section 23
without the necessity of the Indemnified Parties' first paying the same.
23.03(a) From and after the Effective Time of the Reorganization, Armada will
assume and honor any obligation as provided for or permitted by applicable
federal and state law in effect immediately prior to the Effective Time of the
Reorganization with respect to the indemnification of each person who is now, or
has been at any time prior to the date hereof or who becomes prior to the
Effective Time of the Reorganization, a Trustee or officer of Parkstone (for the
purposes of this Section, the "Indemnified Parties") to the maximum extent
available and permitted by applicable law or regulation against any and all
losses in connection with or arising out of any claim which is based upon,
arises out of or in any way relates to any actual or alleged act or omission
occurring at or prior to the Effective Time of the Reorganization, including any
actions taken to approve and implement this Agreement and the transactions
contemplated hereby, in the Indemnified Parties' capacities as director or
officer (whether elected or appointed), of Parkstone. This Section 23.03(a) will
be construed as an agreement as to which the Indemnified Parties are intended to
be third-party beneficiaries.
XXIV. Notices. All notices required or permitted herein shall be in writing and
shall be deemed to be properly given when delivered personally or by telecopier
with confirmation, to the party entitled to receive the notice or when sent by
certified or registered mail, postage prepaid, or delivered to a nationally
recognized overnight courier service, in each case properly addressed to the
party entitled to receive such notice at the address or telecopier number stated
below or to such other address or telecopier number as may hereafter be
furnished in writing by notice similarly given by one party to the other party
hereto:
IF TO ARMADA:
Anne Rapacz-Kimmins
National City Bank
Armada Funds Department, 22nd Floor
1900 East Ninth Street
Cleveland, OH 44114
Telecopier Number: (216) 771-8490
With a copy to:
Audrey C. Talley, Esq.
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
Telecopier Number: (215) 988-2757
IF TO PARKSTONE:
Anne Rapacz-Kimmins
National City Bank
Armada Funds Department, 22nd Floor
1900 East Ninth Street
Cleveland, OH 44114
Telecopier Number: (216) 771-8490
With a copy to:
Audrey C. Talley, Esq.
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
Telecopier Number: (215) 988-2757
XXV. Expenses. Each party represents to the other that its expenses incurred in
connection with the Reorganization will be borne equally by National City Bank
of Michigan/Illinois ("National City") and Armada, provided, however, that
(a) Armada shall bear any filing fees under the 1933 Act and state securities
laws in connection with its A Shares, B Shares and I Shares to be
distributed to shareholders of the Acquired Funds, and
(b) National City shall bear any contractual termination fees incurred by
Parkstone as a result of effecting the transactions contemplated by this
Agreement.
A-15
<PAGE> 72
XXVI. Entire Agreement. This Agreement embodies the entire agreement and
understanding of the parties hereto and supersedes any and all prior agreements,
arrangements and understandings relating to matters provided for herein.
XXVII. Counterparts. This Agreement may be executed in any number of
counterparts, each of which, when executed and delivered shall be deemed to be
an original, but all of which together shall constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized officers designated below as of the date first
written above.
<TABLE>
<S> <C>
Attest:
/s/ Barbara Lance /s/ Herbert R. Martens, Jr.
Barbara Lance Herbert R. Martens, Jr.
President, Armada Funds
Attest:
/s/ Barbara Lance /s/ Herbert R. Martens, Jr.
Barbara Lance Herbert R. Martens, Jr.
President, The Parkstone Group of Funds
</TABLE>
A-16
<PAGE> 73
APPENDIX B
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE INTERNATIONAL
DISCOVERY FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
Year-by-Year Total Returns as of 12/31/99
for Institutional Shares(1)
<S> <C>
1993 33.88%
1994 -6.68%
1995 8.01%
1996 16.56%
1997 1.8%
1998 12.66%
1999 47.18%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 36.05% 4th quarter 1999
Worst quarter was -15.56% 3rd quarter 1998
</TABLE>
This table compares average annual total returns for each share class for the
periods ended December 31, 1999 to those of the Morgan Stanley Capital
International EAFE Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST SINCE
INCEPTION YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Investor A Shares(2) 12/29/92 39.36% 14.82% 13.82%
- ---------------------------------------------------------------
Investor B Shares(3) 2/4/94 40.97% 15.94% 10.09%
- ---------------------------------------------------------------
Institutional Shares 12/29/92 47.18% 16.27% 14.96%
- ---------------------------------------------------------------
Morgan Stanley
Capital
International EAFE
Index 12/29/92 26.96% 12.83% 12.97%
- ---------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA INTERNATIONAL
EQUITY FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows the performance of the Fund's Class I Shares. The returns
for Class A Shares and Class B Shares will differ from the Class I Shares shown
in the bar chart because of differences in the expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<CAPTION>
Calendar Year Total Return (Class I Shares)
<S> <C>
1998 19.98%
1999 50.13%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 36.24% (12/31/99)
Worst quarter was -15.57% (9/30/98)
</TABLE>
This table compares average annual total returns for each share class for the
periods ended December 31, 1999 to those of the Morgan Stanley Capital
International EAFE Index.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR INCEPTION
- -----------------------------------------------------
<S> <C> <C>
A Shares
(with Sales Charge) 41.52% 20.55%(1)
- -----------------------------------------------------
B Shares
(with contingent Deferred Sales
Charge) 43.70% 31.39%(2)
- -----------------------------------------------------
I Shares 50.13% 23.77%(1)
- -----------------------------------------------------
Morgan Stanley Capital
International
EAFE Index(3) 26.96% 18.39%(4)
- -----------------------------------------------------
</TABLE>
(1) Since August 1, 1997.
(2) Since January 6, 1998.
(3) The Morgan Stanley Capital International Europe, Australasia and Far East
(EAFE) Index is an unmanaged index which represents the performance of more
than 1,000 equity securities of companies located in those regions.
(4) Since August 31, 1997.
B-1
<PAGE> 74
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE SMALL
CAPITALIZATION FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 32.39%
1990 -1.37%
1991 43.94%
1992 19.15%
1993 21.93%
1994 5.17%
1995 35.86%
1996 27.70%
1997 -5.97%
1998 -5.31%
1999 32.13%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 36.36% 4th quarter 1999
Worst quarter was -26.90% 3rd quarter 1998
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Russell 2000 Growth Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 24.65% 13.83% 15.21% 16.41%
- ---------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 25.79% 14.31% N/A 13.60%
- ---------------------------------------------------------------------------
Institutional Shares 10/31/88 32.13% 15.34% 16.04% 17.16%
- ---------------------------------------------------------------------------
Russell 2000 Growth
Index 10/31/88 43.10% 18.99% 13.51% 13.95%
- ---------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA SMALL CAP
GROWTH FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows the performance of the Fund's Class I Shares. The returns
for Class A Shares and Class B Shares will differ from the Class I Shares shown
in the bar chart because of differences in the expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
[ARMADA SMALL CAP GROWTH FUND CHART]
<TABLE>
<S> <C>
Calendar Year Total Return (I Shares)
1998 7.56%
1999 36.06%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 36.30% (12/31/99)
Worst quarter was -21.14% (9/30/98)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Russell 2000 Growth Index.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR INCEPTION
- -----------------------------------------------------
<S> <C> <C>
A Shares
(with Sales Charge) 28.17% 17.40%(1)
- -----------------------------------------------------
B Shares
(with contingent
Deferred Sales Charge) 29.81% 18.13%(2)
- -----------------------------------------------------
I Shares 36.06% 20.49%(1)
- -----------------------------------------------------
Russell 2000
Growth Index(3) 43.10% 16.77%(4)
- -----------------------------------------------------
</TABLE>
(1) Since August 1, 1997.
(2) Since January 6, 1998.
(3) The Russell 2000 Growth Index is comprised of securities in the Russell 2000
Stock Index with a greater than average growth orientation.
(4) Since August 31, 1997.
B-2
<PAGE> 75
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE EQUITY
INCOME FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR
INVESTOR A SHARES(1)
------------------------------------------
<S> <C>
1989 28.13%
1990 0.13%
1991 24.96%
1992 9.40%
1993 12.65%
1994 -8.26%
1995 27.71%
1996 17.17%
1997 25.48%
1998 10.95%
1999 -0.26%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 13.54% 2nd quarter 1997
Worst quarter was -10.73% 3rd quarter 1998
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the S&P 500 Barra Value Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 -6.04% 14.24% 10.64% 12.16%
- --------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 -4.28% 14.67% N/A 10.29%
- --------------------------------------------------------------------------
Institutional Shares 10/31/88 -0.26% 15.75% 11.39% 12.84%
- --------------------------------------------------------------------------
S&P Barra Value Index 10/31/88 12.72% 22.94% 15.37% 16.06%
- --------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA EQUITY
INCOME FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
[CALENDAR YEAR TOTAL RETURN CHART
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1995 27.70%
1996 18.08%
1997 29.21%
1998 10.23%
1999 -0.13%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 12.63% (6/30/97)
Worst quarter was -9.19% (9/30/99)
</TABLE>
This table compares average annual total returns for each share class for the
periods ended December 31, 1999 to those of the S&P Barra Value Index
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS INCEPTION
- ------------------------------------------------------
<S> <C> <C> <C>
A Shares
(with Sales Charge) -5.73% 14.89%(1) 13.40%(1)
- ------------------------------------------------------
B Shares
(with contingent
Deferred Sales Charge) -5.56% N/A 2.24%(2)
- ------------------------------------------------------
I Shares -0.13% 16.49% 15.02%(3)
- ------------------------------------------------------
S&P Barra Value
Index(4) 12.72% 22.94% 20.65%(5)
- ------------------------------------------------------
</TABLE>
(1) Since August 22, 1994.
(2) Since January 6, 1998.
(3) Since July 1, 1994.
(4) The S&P Barra Value Index is comprised of securities in the S&P 500
Composite Index that have a lower than average price-to-book ratio. The S&P
500 Composite Index is a widely recognized, unmanaged index of 500 common
stocks which are generally representative of the U.S. stock market as a
whole.
(5) Since July 31, 1994.
B-3
<PAGE> 76
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE BALANCED
ALLOCATION FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns Chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1993 11.42%
1994 -2.77%
1995 22.96%
1996 13.10%
1997 11.67%
1998 13.04%
1999 17.35%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 16.39% 4th quarter 1999
Worst quarter was -6.87% 3rd quarter 1998
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the S&P 500 Composite Index and
the Lehman Brothers Aggregate Bond Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST SINCE
INCEPTION YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Investor A Shares(2) 1/31/92 11.48% 14.16% 11.26%
- ---------------------------------------------------------------
Investor B Shares(3) 2/4/94 11.20% 14.43% 11.46%
- ---------------------------------------------------------------
Institutional Shares 1/31/92 17.35% 15.55% 12.15%
- ---------------------------------------------------------------
S&P Stock Index 1/31/92 21.04% 28.55% 20.19%
- ---------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 1/31/92 -0.83% 7.73% 6.80%
- ---------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA BALANCED
ALLOCATION FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<S> <C>
Calendar Year Total Return (I Shares)
1999 15.27%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 16.09% (12/31/99)
Worst quarter was -3.21% (9/30/99)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the S&P 500 Composite Index, the
Lehman Aggregate Bond Index and a Balanced Hybrid Benchmark.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR INCEPTION
- -----------------------------------------------------
<S> <C> <C>
A Shares
(with Sales Charge) 9.55% 12.91%(1)
- -----------------------------------------------------
B Shares
(with contingent Deferred Sales
Charge) 9.28% 15.79%(2)
- -----------------------------------------------------
I Shares 15.27% 14.31%(3)
- -----------------------------------------------------
S&P 500 Composite Index(4) 21.04% 22.73%(5)
- -----------------------------------------------------
Lehman Aggregate Bond Index(6) -0.83% 2.45%(7)
- -----------------------------------------------------
Balanced Allocation Hybrid
Benchmark(8) 12.00% 14.77%(9)
- -----------------------------------------------------
</TABLE>
(1) Since July 31, 1998.
(2) Since November 11, 1998.
(3) Since July 10, 1998.
(4) The S&P 500 Composite Index is a widely recognized, unmanaged index of 500
common stocks which are generally representative of the U.S. stock market as
a whole.
(5) Since July 31, 1998.
(6) The Lehman Aggregate Bond Index is an unmanaged, fixed income, market
value-weighted index that includes treasury issues, agency issues, corporate
bond issues and mortgage-backed securities.
(7) Since July 31, 1998.
(8) The Balanced Allocation Hybrid Benchmark is an unmanaged composite of the
S&P 500 Composite Index and the Lehman Aggregate Bond Index. These two
indices are combined in the same ratio as the stock/bond ration of the
Balanced Allocation Fund to arrive at the Hybrid Benchmark.
(9) Since July 31, 1998.
B-4
<PAGE> 77
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE BOND FUND*
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 11.91%
1990 8.12%
1991 15.04%
1992 6.23%
1993 9.83%
1994 -3.50%
1995 18.05%
1996 3.41%
1997 9.28%
1998 7.50%
1999 -1.75%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Funds:
<TABLE>
<S> <C> <C>
Best quarter was 6.16% 2nd quarter 1995
Worst quarter was -2.67% 1st quarter 1994
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman Brothers Aggregate
Bond Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 -6.67% 5.68% 6.31% 6.60%
- --------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 -7.38% 6.03% N/A 4.19%
- --------------------------------------------------------------------------
Institutional Shares 10/31/88 -1.75% 7.10% 7.03% 7.25%
- --------------------------------------------------------------------------
Lehman Brothers
Aggregate Bond Index 10/31/88 -0.83% 7.73% 7.70% 8.06%
- --------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA BOND FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
[TOTAL RETURN BAR CHART]
<TABLE>
<S> <C>
Calendar Year Total Return (I Shares)
1995 14.46%
1996 3.48%
1997 7.97%
1998 8.44%
1999 -1.89%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 4.75% (9/30/98)
Worst quarter was -1.12% (3/31/99)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman Aggregate Bond Index.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS INCEPTION
- -------------------------------------------------------
<S> <C> <C> <C>
A Shares
(with Sales Charge) -6.62% N/A 3.62%(1)
- -------------------------------------------------------
B Shares
(with contingent
Deferred Sales Charge) -7.35% N/A -0.48%(2)
- -------------------------------------------------------
I Shares -1.89% 6.35% 5.75%(3)
- -------------------------------------------------------
Lehman Aggregate Bond
Index(4) -0.83% 7.73% 7.01%(5)
- -------------------------------------------------------
</TABLE>
(1) Since September 11, 1996.
(2) Since January 6, 1998.
(3) Since August 10, 1994.
(4) The Lehman Aggregate Bond Index is an unmanaged, fixed income, market
value-weighted index that includes treasury issues, agency issues, corporate
bond issues and mortgage-backed securities.
(5) August 31, 1994.
* Denotes the surviving portfolio for purposes of maintaining the financial
statements and performance history after the reorganization.
B-5
<PAGE> 78
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE INTERMEDIATE
GOVERNMENT OBLIGATIONS FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 10.05%
1990 8.81%
1991 13.77%
1992 5.33%
1993 7.44%
1994 -2.33%
1995 13.49%
1996 3.17%
1997 6.88%
1998 7.62%
1999 -0.07%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Funds:
<TABLE>
<S> <C> <C>
Best quarter was 4.89% 4th quarter 1991
Worst quarter was -1.91% 1st quarter 1994
</TABLE>
The table compares the average annual total returns for each share class for the
periods ended December 31, 1999 to those of the Lehman Brothers Intermediate
Government Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 -5.05% 4.81% 5.62% 5.82%
- --------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 -5.75% 5.07% N/A 3.65%
- --------------------------------------------------------------------------
Institutional Shares 10/31/88 -0.07% 6.12% 6.30% 6.43%
- --------------------------------------------------------------------------
Lehman Brothers
Intermediate
Government Index 10/31/88 0.50% 6.93% 7.10% 7.41%
- --------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA INTERMEDIATE
BOND FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1990 8.28%
1991 15.69%
1992 7.51%
1993 10.32%
1994 -4.52%
1995 15.74%
1996 3.12%
1997 6.94%
1998 7.91%
1999 -0.04%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 5.46% (12/31/90)
Worst quarter was -3.22% (3/31/94)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman Intermediate
Government/ Corporate Bond Index.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares
(with Sales Charges) -5.13% 5.21% N/A 5.64%(1)
- --------------------------------------------------------------
B Shares
(with contingent
Deferred Sales
Charges) -5.70% N/A N/A -0.09%(2)
- --------------------------------------------------------------
I Shares -0.04% 6.60% 6.92% 6.91%(3)
- --------------------------------------------------------------
Lehman Intermediate
Government/ Corporate
Bond Index(4) 0.39% 7.09% 7.26% 7.26%(5)
- --------------------------------------------------------------
</TABLE>
(1) Since April 15, 1991.
(2) Since January 6, 1998.
(3) Since December 20, 1989.
(4) The Lehman Intermediate Government/Corporate Bond Index is an unmanaged
index which is representative of intermediate-term bonds.
(5) Since December 31, 1989.
B-6
<PAGE> 79
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE LIMITED MATURITY
BOND FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 9.54%
1990 7.83%
1991 12.24%
1992 5.76%
1993 6.85%
1994 -0.72%
1995 11.27%
1996 4.16%
1997 5.80%
1998 6.51%
1999 3.13%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 4.17% 4th quarter 1991
Worst quarter was -1.08% 1st quarter 1994
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Merrill Lynch 1-3 Year
Government/ Corporate Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 0.01% 5.27% 5.76% 6.02%
- --------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 -2.77% 5.07% N/A 3.93%
- --------------------------------------------------------------------------
Institutional Shares 10/31/88 3.13% 6.14% 6.22% 6.43%
- --------------------------------------------------------------------------
Merrill Lynch 1-3
Year Government/
Corporate Index 10/31/88 3.25% 6.59% 6.68% 6.95%
- --------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA LIMITED MATURITY
BOND FUND
(FORMERLY THE ENHANCED INCOME FUND)
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
There is no performance information for Class B Shares because they have not yet
completed a full calendar year of operations.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1995 7.69%
1996 5.29%
1997 6.43%
1998 6.58%
1999 3.20%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 2.95% (9/30/98)
Worst quarter was 0.28% (6/30/99)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Merrill Lynch 1-3 Year
Government/ Corporate Index.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS INCEPTION
- --------------------------------------------------------
<S> <C> <C> <C>
A Shares
(with Sales Charge) 0.27% 5.18% 5.08%(1)
- --------------------------------------------------------
I Shares 3.20% 5.83% 5.67%(2)
- --------------------------------------------------------
Merrill Lynch 1-3 Year
Government/Corporate
Index(3) 3.25% 6.56% 6.09%(4)
- --------------------------------------------------------
</TABLE>
(1) Since September 9, 1994.
(2) Since July 7, 1994.
(3) This is a market capitalization weighted index including U.S. Treasury and
Agency bonds and U.S. fixed coupon investment grade corporate bonds (U.S.
domestic and Yankee/global bonds). U.S. Treasury bonds must have at least $1
billion face value outstanding and agency and corporate bonds must have at
least $150 million face value outstanding to be included in the index. Both
total return and price returns are calculated daily. Prices are taken as of
approximately 3 p.m. ET. Quality range is BBB3-AAA based on composite Moody
and S&P ratings. Maturities for all bonds are greater than or equal to one
year and less than three years. Floaters, Equipment Trust Certificates, and
Title 11 securities are excluded.
(4) Since July 31, 1994.
B-7
<PAGE> 80
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE NATIONAL TAX EXEMPT
BOND FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 7.57%
1990 6.01%
1991 9.16%
1992 7.46%
1993 9.18%
1994 -3.25%
1995 13.57%
1996 2.92%
1997 6.52%
1998 4.98%
1999 -1.45%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 5.69% 1st quarter 1995
Worst quarter was -3.27% 1st quarter 1994
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman Brothers Municipal
Bond Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 -6.41% 3.90% 4.73% 4.95%
- ----------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 -7.18% 4.07% N/A 2.66%
- ----------------------------------------------------------------------------
Institutional Shares 10/31/88 -1.45% 5.19% 5.40% 5.55%
- ----------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index 10/31/88 -2.07% 6.91% 6.90% 7.13%
- ----------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA NATIONAL TAX EXEMPT
BOND FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
[CALENDAR YEAR TOTAL RETURN CHART]
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1989 9.79%
1990 4.65%
1991 8.45%
1992 9.74%
1993 11.76%
1994 -4.58%
1995 14.05%
1996 -1.07%
1997 6.57%
1998 5.95%
1999 -1.12%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 5.44% (3/31/95)
Worst quarter was -4.13% (3/31/94)
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman 10 Year Municipal
Bond Index.
<TABLE>
<CAPTION>
SHARES 1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------------------
<S> <C> <C> <C>
A Shares
(with Sales Charge) -5.58% 3.73% 4.78%
- -------------------------------------------------------------------
B Shares
(with contingent Deferred Sales
Charge) -6.53% 4.24% 5.20%
- -------------------------------------------------------------------
I Shares -1.12% 4.73% 5.28%
- -------------------------------------------------------------------
Lehman 10 Year Municipal Bond
Index(1) -1.24% 7.12% 7.10%
- -------------------------------------------------------------------
</TABLE>
(1) The Lehman 10 Year Municipal Bond Index is a broad based total return index.
The bonds are all investment grade, fixed rate with maturities of 9-12 years
and are selected from issues larger than $50 million dated since January
1984.
The performance of the National Tax Exempt Bond Fund for the period prior to
June 22, 1998 is represented by the performance of a common trust fund ("common
trust fund") which operated prior to the effectiveness of the registration
statement of the National Tax Exempt Bond Fund. The common trust fund was
advised by National City Bank, an affiliate of the Adviser. At the time of the
National Tax Exempt Bond Fund's inception, the common trust fund was operated
using materially equivalent investment objectives, policies, guidelines and
restrictions as the Fund. In connection with the National Tax Exempt Bond Fund's
commencement of operations, on June 22, 1998, the common trust fund transferred
its assets to the Fund. At the time of the transfer, the Adviser did not manage
any other collective investment or common trust funds using materially
equivalent investment objectives, policies, guidelines and restrictions to those
of the National Tax Exempt Bond Fund.
The common trust fund was not open to the public generally, nor registered under
the Investment Company Act of 1940 (the "1940 Act") or subject to certain
restrictions that are imposed by the 1940 Act and the Internal Revenue Code. If
the common trust fund had been registered under the 1940 Act, performance may
have been adversely affected. Performance quotations of the common trust fund
represent past performance of the Adviser managed common trust fund, which are
separate and distinct from the National Tax Exempt Bond Fund; do not represent
past performance of the Fund; and should not be considered as representative of
future results of the Fund.
B-8
<PAGE> 81
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE
TAX-FREE FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 6.08%
1990 5.46%
1991 3.96%
1992 2.53%
1993 1.88%
1994 2.34%
1995 3.26%
1996 2.79%
1997 3.08%
1998 2.86%
1999 2.63%
</TABLE>
The returns for Investor A Shares will differ from the Institutional Shares
shown in the bar chart because of differences in the expenses of each class.
Performance for Investor A Shares will be reduced due to greater expenses, such
as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 1.37% 2nd quarter 1990
Worst quarter was 0.43% 1st quarter 1994
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
INCEPTION PAST PAST PAST SINCE
DATE YEAR 5 YEARS 10 YEARS INCEPTION
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares 7/30/87 2.53% 2.82% 3.01% 3.44%
- -------------------------------------------------------------------------
Institutional Shares 7/30/87 2.63% 2.92% 3.07% 3.50%
- -------------------------------------------------------------------------
</TABLE>
For current yield information on the Fund, call 1-800-451-8377. The Tax-Free
Fund's yield appears in The Wall Street Journal each Thursday.
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
ARMADA TAX EXEMPT
MONEY MARKET FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1989 6.20%
1990 5.83%
1991 4.26%
1992 2.52%
1993 2.02%
1994 2.51%
1995 3.57%
1996 3.21%
1997 3.37%
1998 3.23%
1999 2.95%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 1.47% (12/31/90)
Worst quarter was 0.47% (3/31/94)
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 2.80% 3.14% N/A 2.89%(1)
- --------------------------------------------------------------
I Shares 2.95% 3.27% 3.34% 3.68%(2)
- --------------------------------------------------------------
</TABLE>
(1) Since April 1, 1991.
(2) Since July 20, 1988.
B-9
<PAGE> 82
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE PRIME
OBLIGATIONS FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 8.98%
1990 7.9%
1991 5.96%
1992 3.56%
1993 2.68%
1994 3.72%
1995 5.42%
1996 4.99%
1997 5.45%
1998 5.04%
1999 4.68%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A and Investor B Shares will be
reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 1.93% 2nd quarter 1990
Worst quarter was 0.65% 2nd quarter 1993
</TABLE>
This table shows the Fund's average annual total returns for the periods ended
December 31, 1999.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- ----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares 8/24/87 4.58% 4.86% 4.79% 5.38%
- ----------------------------------------------------------------------------
Investor B Shares* 9/26/97 3.65% N/A N/A 3.86%
- ----------------------------------------------------------------------------
Institutional
Shares............... 8/24/87 4.68% 5.05% 4.90% 5.47%
- ----------------------------------------------------------------------------
</TABLE>
For current yield information on the Fund, call 1-800-451-8377. The Prime
Obligations Fund's yield appears in The Wall Street Journal each Thursday.
* The table above reflects the impact of any contingent deferred sales charges
that apply to Investor B Shares of the Prime Obligations Fund.
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
ARMADA MONEY
MARKET FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares and Class B Shares will differ
from the Class I Shares shown in the bar chart because of differences in the
expenses of each class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
[TOTAL RETURN CHART]
<TABLE>
<CAPTION>
CALENDAR YEAR TOTAL RETURN (I SHARES)
-------------------------------------
<S> <C>
1989 9.20%
1990 8.16%
1991 5.67%
1992 3.33%
1993 2.76%
1994 3.98%
1995 5.72%
1996 5.19%
1997 5.32%
1998 5.25%
1999 4.92%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 2.01% (6/30/90)
Worst quarter was 0.67% (6/30/93)
</TABLE>
This table shows the Fund's average annual total returns for the periods ended
December 31, 1999.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS 10 YEARS INCEPTION
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares
(with Sales Charge) 4.76% 5.16% N/A 4.52%(1)
- ---------------------------------------------------------------
B Shares
(with contingent
Deferred Sales
Charge) -0.92% N/A N/A 2.38%(2)
- ---------------------------------------------------------------
I Shares 4.92% 5.28% 5.02% 5.62%(3)
- ---------------------------------------------------------------
</TABLE>
(1) Since April 1, 1991.
(2) Since January 5, 1998.
(3) Since September 3, 1986.
B-10
<PAGE> 83
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE U.S. GOVERNMENT
OBLIGATIONS FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 8.66%
1990 7.69%
1991 5.62%
1992 3.72%
1993 2.62%
1994 3.66%
1995 5.39%
1996 4.86%
1997 4.98%
1998 4.94%
1999 4.52%
</TABLE>
The returns for Investor A Shares will differ from the Institutional Shares
shown in the bar chart because of differences in the expenses of each class.
Performance for Investor A Shares will be reduced due to greater expenses, such
as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 1.90% 2nd quarter 1990
Worst quarter was 0.64% 2nd quarter 1993
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares 8/18/87 4.42% 4.83% 4.72% 5.28%
- -------------------------------------------------------------------------
Institutional Shares 8/18/87 4.52% 4.94% 4.79% 5.33%
- -------------------------------------------------------------------------
</TABLE>
For current yield information on the Fund, call 1-800-451-8377. The U.S.
Government Obligations Fund's yield appears in The Wall Street Journal each
Thursday.
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
ARMADA GOVERNMENT
MONEY MARKET FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the performance of the Fund's Class I Shares
from year to year. The returns for Class A Shares will differ from the Class I
Shares shown in the bar chart because of differences in the expenses of each
class.
CALENDAR YEAR TOTAL RETURNS (I SHARES)
<TABLE>
<S> <C>
Calendar Year Total Return (I Shares)
1989 9.01%
1990 7.94%
1991 5.65%
1992 3.36%
1993 2.75%
1994 3.91%
1995 5.63%
1996 5.14%
1997 5.25%
1998 5.15%
1999 4.82%
</TABLE>
<TABLE>
<S> <C> <C>
Best quarter was 1.95% (6/30/90)
Worst quarter was 0.67% (6/30/93)
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
<TABLE>
<CAPTION>
SINCE
SHARES 1 YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------
<S> <C> <C> <C> <C>
A Shares 4.66% 5.07% N/A 4.43%(1)
I Shares 4.82% 5.20% 4.95% 5.51%(2)
- --------------------------------------------------------------
</TABLE>
(1) Since April 1, 1991.
(2) Since March 3, 1987.
B-11
<PAGE> 84
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE LARGE
CAPITALIZATION FUND
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1996 23.23%
1997 29.08%
1998 42.62%
1999 29.04%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 25.53% 4th quarter 1998
Worst quarter was -9.12% 3rd quarter 1998
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the S&P Barra Growth Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST SINCE
INCEPTION YEAR INCEPTION
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A Shares (2) 2/1/96 21.45% 28.30%
- -----------------------------------------------------------
Investor B Shares (3) 2/1/96 22.53% 28.87%
- -----------------------------------------------------------
Institutional Shares 12/28/95 29.04% 30.80%
- -----------------------------------------------------------
S&P Barra Growth Index 12/28/95 28.26% 32.43%
- -----------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA LARGE CAP
ULTRA FUND
There is no bar chart or performance table for the Class A, Class B or Class I
Shares of this Fund because it has not yet completed a full calendar year of
operations.
The performance of Class A, Class B and Class I Shares will differ due to
differences in expenses.
B-12
<PAGE> 85
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE U.S. GOVERNMENT
INCOME FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1993 7.48%
1994 -0.55%
1995 13.78%
1996 4.70%
1997 8.10%
1998 7.08%
1999 1.23%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 3.94% 2nd quarter 1995
Worst quarter was -1.06% 1st quarter 1994
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST SINCE
INCEPTION YEAR 5 YEARS INCEPTION
- ----------------------------------------------------------------
<S> <C> <C> <C> <C>
Investor A Shares(2) 11/12/92 -3.80% 5.62% 4.90%
- ----------------------------------------------------------------
Investor B Shares(3) 2/4/94 -4.57% 5.89% 4.61%
- ----------------------------------------------------------------
Institutional Shares 11/12/92 1.23% 6.90% 5.83%
- ----------------------------------------------------------------
Lehman Brothers
Mortgage-Backed
Securities Index 11/12/92 1.85% 7.98% 6.50%
- ----------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA U.S. GOVERNMENT
INCOME FUND
There is no bar chart or performance table for the Class A, Class B or Class I
Shares of this Fund because it has not yet completed a full calendar year of
operations.
The performance of Class A, Class B and Class I Shares will differ due to
differences in expenses.
B-13
<PAGE> 86
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE MID
CAPITALIZATION FUND
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1989 35.54%
1990 -3.30%
1991 27.60%
1992 15.22%
1993 12.97%
1994 -5.30%
1995 29.86%
1996 18.32%
1997 11.70%
1998 11.31%
1999 45.85%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 35.09% 4th quarter 1999
Worst quarter was -19.22% 3rd quarter 1998
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Russell Mid-Cap Growth
Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- --------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares(2) 10/31/88 37.44% 21.21% 14.79% 16.26%
- --------------------------------------------------------------------------
Investor B Shares(3) 2/4/94 39.47% 21.69% N/A 17.11%
- --------------------------------------------------------------------------
Institutional Shares 10/31/88 45.85% 22.75% 15.53% 16.94%
- --------------------------------------------------------------------------
Russell Midcap Growth
Index 10/31/88 51.30% 28.02% 18.95% 19.84%
- --------------------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA MID CAP
GROWTH FUND
There is no bar chart or performance table for the Class A, Class B or Class I
Shares of this Fund because it has not yet completed a full calendar year of
operations.
The performance of Class A, Class B and Class I Shares will differ due to
differences in expenses.
B-14
<PAGE> 87
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE MICHIGAN
MUNICIPAL BOND FUND
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99
FOR INSTITUTIONAL SHARES(1)
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31/99 FOR
INSTITUTIONAL SHARES(1)
---------------------------------------------
<S> <C>
1991 9.78%
1992 6.98%
1993 9.74%
1994 -2.86%
1995 13.63%
1996 3.03%
1997 7.18%
1998 5.00%
1999 -1.34%
</TABLE>
The returns for Investor A Shares and Investor B Shares will differ from the
Institutional Shares shown in the bar chart because of differences in the
expenses of each class. Performance for Investor A Shares and Investor B Shares
will be reduced due to greater expenses, such as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 5.25% 1st quarter 1995
Worst quarter was -3.28% 1st quarter 1994
</TABLE>
This table compares the average annual total returns for each share class for
the periods ended December 31, 1999 to those of the Lehman Seven Year Municipal
Bond Index.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
FUND OR
CLASS PAST PAST SINCE
INCEPTION YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------
<S> <C> <C> <C> <C>
Investor A Shares(2) 7/02/90 -6.25% 4.10% 4.90%
- ---------------------------------------------------------------
Investor B Shares(3) 2/04/94 -7.05% 4.38% 2.90%
- ---------------------------------------------------------------
Institutional Shares 7/02/90 -1.34% 5.39% 5.61%
- ---------------------------------------------------------------
Lehman Seven Year
Municipal Bond Index 6/30/90 -0.41% 6.36% 6.56%
- ---------------------------------------------------------------
</TABLE>
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
(2) Includes sales charge.
(3) Includes applicable contingent deferred sales charge.
ARMADA MICHIGAN
MUNICIPAL BOND FUND
There is no bar chart or performance table for the Class A, Class B or Class I
Shares of this Fund because it has not yet completed a full calendar year of
operations.
The performance of Class A, Class B and Class I Shares will differ due to
differences in expenses.
B-15
<PAGE> 88
PERFORMANCE INFORMATION ABOUT THE FUNDS
PARKSTONE
TREASURY FUND
CALENDAR YEAR TOTAL RETURNS AS OF 12/31/99 FOR INSTITUTIONAL SHARES(1)
The bar chart and the performance table below illustrate the volatility of an
investment in the Fund. Of course, the Fund's past performance does not
necessarily indicate how the Fund will perform in the future.
[Total Returns chart]
<TABLE>
<CAPTION>
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31 FOR
INVESTOR A SHARES(1)
------------------------------------------
<S> <C>
1994 3.71%
1995 5.42%
1996 4.89%
1997 5.06%
1998 4.96%
1999 4.44%
</TABLE>
<TABLE>
<CAPTION>
1994 1995 1996 1997 1998 1999
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Percentage........... 3.71% 5.42% 4.89% 5.06% 4.96% 4.44%
</TABLE>
The returns for Investor A Shares will differ from the Institutional Shares
shown in the bar chart because of differences in the expenses of each class.
Performance for Investor A Shares will be reduced due to greater expenses, such
as distribution and service fees.
During the period shown in the bar chart, the Fund's:
<TABLE>
<S> <C> <C>
Best quarter was 1.36% 2nd quarter 1995
Worst quarter was 0.65% 1st quarter 1994
</TABLE>
This table shows the average annual total returns for each share class for the
periods ended December 31, 1999.
AVERAGE ANNUAL TOTAL RETURNS(1)
(FOR THE PERIODS ENDED DECEMBER 31, 1999)
<TABLE>
<CAPTION>
CLASS PAST PAST PAST SINCE
INCEPTION YEAR 5 YEARS 10 YEARS INCEPTION
- -------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investor A Shares 12/1/93 4.34% 4.85% N/A 4.61%
- -------------------------------------------------------------------------
Institutional Shares 12/1/93 4.44% 4.96% N/A 4.72%
- -------------------------------------------------------------------------
</TABLE>
For current yield information on the Fund, call 1-800-451-8377. The Treasury
Fund's yield appears in The Wall Street Journal each Thursday.
(1) Both the chart and the table assume reinvestment of dividends and
distributions.
ARMADA TREASURY PLUS
MONEY MARKET FUND
There is no bar chart or performance table for the Class A or Class I Shares of
this Fund because it has not yet completed a full calendar year of operations.
The performance of Class A and Class I Shares will differ due to differences in
expenses.
B-16
<PAGE> 89
APPENDIX C
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE PRIME OBLIGATIONS FUND ARMADA MONEY MARKET FUND MONEY MARKET FUND
---------------------------------- -------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases None None None None None None None None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(3) None None 5.00%(5) None None 5.00%(5) None
Redemption Fee None(1) None None None None None None None None
Exchange Fee None(2) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .35% .35% .35% .35% .35% .35% .35% .35% .35%
12b-1 Fees .25% 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .28% .27% .27% .25% .25% .10% .25% .25% .10%
Total Operating Expenses .88%(6) 1.62%(6) .62%(4,6) .70%(7) 1.35%(7) .55%(7) .70% 1.35% .55%
</TABLE>
(1) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(2) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(3) The contingent deferred sales load declines over five years starting with
year one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are subject
to a CDSC which declines over four years ending in year five from: 4.00%;
4.00%; 3.00%; 2.00%.
(4) Certain purchases of the Funds through financial institutions may be subject
to fees for additional services provided to investors.
(5) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales charge
is charged after the fifth year.
(6) The Administrator and Distributor are each currently waiving a portion of
their fees for the current year. With these fee waivers the Fund's actual
total operating expenses are expected to be 0.71% for Investor A Shares,
1.61% for Investor B Shares and 0.60% for Institutional Shares.
(7) The Fund's Adviser and Distributor are each waiving a portion of the fees in
order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.54% for
Class A Shares, 1.25% for Class B Shares and 0.39% for Class I Shares.
C-1
<PAGE> 90
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE PRIME OBLIGATIONS
FUND
INVESTOR A SHARES $ 90 $281 $ 488 $1,084
INVESTOR B SHARES
ASSUMING REDEMPTION $665 $911 $1,081 $1,631
ASSUMING NO REDEMPTION $165 $511 $ 881 $1,631
INSTITUTIONAL SHARES $ 63 $199 $ 346 $ 774
ARMADA MONEY MARKET FUND
A SHARES $ 72 $224 $ 390 $ 871
B SHARES
ASSUMING REDEMPTION $637 $828 $ 939 $1,444
ASSUMING NO REDEMPTION $137 $428 $ 739 $1,444
I SHARES $ 56 $176 $ 307 $ 689
PRO FORMA COMBINED ARMADA
MONEY MARKET FUND
A SHARES $ 72 $224 $ 390 $ 871
B SHARES
ASSUMING REDEMPTION $637 $828 $ 939 $1,444
ASSUMING NO REDEMPTION $137 $428 $ 739 $1,444
I SHARES $ 56 $176 $ 307 $ 689
</TABLE>
C-2
<PAGE> 91
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PARKSTONE ARMADA PRO FORMA COMBINED
U.S. GOVERNMENT GOVERNMENT MONEY GOVERNMENT MONEY
OBLIGATIONS FUND MARKET FUND MARKET FUND
---------------------- ----------------- -------------------
INVESTOR INSTITUTIONAL
A SHARES SHARES A SHARES I SHARES A SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases None None None None None None
Maximum Sales Load Imposed on Reinvested Dividends None None None None None None
Contingent Deferred Sales Charge None None None None None None
Redemption Fee None(1) None(1) None None None None
Exchange Fee None(2) None None None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees .35% .35% .35% .35% .35% .35%
12b-1 Fees .25% .00% .10% .10% .10% .10%
Other Expenses .36% .36% .25% .10% .25% .10%
Total Operating Expenses 0.96%(4) .71%(3,4) .70%(5) .55%(5) .70% .55%
</TABLE>
(1) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(2) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(3) Certain purchases of the Funds through financial institutions may be subject
to fees for additional services provided to investors.
(4) The Administrator and Distributor are each currently waiving a portion of
their fees for the current year. With these fee waivers the Fund's actual
total operating expenses are expected to be 0.79% for Investor A Shares and
0.69% for Institutional Shares.
(5) The Fund's Adviser and Distributor are each waiving a portion of the fees in
order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.54% for
Class A Shares and 0.39% for Class I Shares.
C-3
<PAGE> 92
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return and Fund
expenses remain the same. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE U.S. GOVERNMENT
OBLIGATIONS FUND
INVESTOR A SHARES $98 $306 $531 $1,178
INSTITUTIONAL SHARES $73 $227 $395 $ 883
ARMADA GOVERNMENT MONEY MARKET
FUND
A SHARES $72 $224 $390 $ 871
I SHARES $56 $176 $307 $ 689
PRO FORMA COMBINED GOVERNMENT
MONEY MARKET FUND
A SHARES $72 $224 $390 $ 871
I SHARES $56 $176 $307 $ 689
</TABLE>
C-4
<PAGE> 93
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
ARMADA TAX EXEMPT PRO FORMA COMBINED
PARKSTONE TAX-FREE FUND MONEY MARKET FUND TAX EXEMPT MONEY MARKET
------------------------ ----------------------------- --------------------------
INVESTOR INSTITUTIONAL
A SHARES SHARES A SHARES B SHARES(4) I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on
Purchases None None None None None None None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None
Contingent Deferred Sales Charge None None None 5.00%(5) None None 5.00%(5) None
Redemption Fee None(1) None(1) None(1) None(1) None(1) None(1) None(1) None(1)
Exchange Fee None(2) None None None None None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET
ASSETS)
Management Fees .35% .35% .35% .35% .35% .35% .35% .35%
12b-1 Fees .25% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .29% .30% .27% .27% .12% .26% .26% .11%
Total Operating Expenses .89%(6) .65%(3,6) .72%(7) 1.37%(7) .57%(7) .71% 1.36% .56%
</TABLE>
(1) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(2) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(3) Certain purchases of the Funds through financial institutions may be subject
to fees for additional services provided to investors.
(4) As of the date of this Prospectus, the Armada Tax Exempt Money Market Fund's
B share class has not commenced operations, and therefore, "Other Expenses"
for such class are estimates only.
(5) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales charge
is charged after the fifth year.
(6) The Administrator and Distributor are each currently waiving a portion of
their fees for the current year. With these fee waivers the Fund's actual
total operating expenses are expected to be 0.72% for Investor A Shares and
0.63% for Institutional Shares.
(7) The Fund's Adviser and Distributor are each waiving a portion of the fees in
order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.46% for
Class A Shares, 1.17% for Class B Shares and 0.31% for Class I Shares.
C-5
<PAGE> 94
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE TAX FREE FUND
INVESTOR A SHARES $ 91 $284 $493 $1,096
INSTITUTIONAL SHARES $ 66 $208 $362 $ 810
ARMADA TAX EXEMPT MONEY
MARKET FUND
A SHARES $ 74 $230 $401 $ 894
B SHARES
ASSUMING REDEMPTION $639 $834 $950 $1,467
ASSUMING NO
REDEMPTION $139 $434 $750 $1,467
I SHARES $ 58 $183 $318 $ 714
PRO FORMA COMBINED TAX
EXEMPT MONEY MARKET FUND
A SHARES $ 73 $227 $395 $ 883
B SHARES
ASSUMING REDEMPTION $638 $831 $945 $1,456
ASSUMING NO
REDEMPTION $138 $431 $745 $1,456
I SHARES $ 57 $179 $313 $ 701
</TABLE>
C-6
<PAGE> 95
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE BOND FUND ARMADA BOND FUND BOND FUND
------------------------------- -------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 4.75%(1) None None 4.75%(8) None None 4.75%(8) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .55% .55% .55% .55% .55% .55% .55% .55% .55%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .29% .29% .29% .39% .39% .14% .39% .39% .14%
Total Operating Expenses 1.09%(10) 1.84%(10) 0.84%(7,10) 1.04%(11) 1.69% .79%(11) 1.04% 1.69% .79%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemption proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much a shareholder invests.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 1.04% for Investor A Shares, 1.79% for Investor
B Shares and 0.79% for Institutional Shares.
(11) The Fund's Distributor is waiving a portion of the fees in order to keep
operating expenses at a specified level. The Distributor may discontinue
all or part of these waivers at any time. With these waivers, the Fund's
actual total operating expenses are 0.98% for Class A Shares and 0.73% for
Class I Shares.
C-7
<PAGE> 96
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE BOND FUND
INVESTOR A SHARES $581 $805 $1,047 $1,741
INVESTOR B SHARES
ASSUMING REDEMPTION $687 $979 $1,195 $1,870
ASSUMING NO REDEMPTION $187 $579 $ 995 $1,870
INSTITUTIONAL SHARES $ 86 $268 $ 466 $1,037
ARMADA BOND FUND
A SHARES $576 $790 $1,022 $1,686
B SHARES
ASSUMING REDEMPTION $672 $933 $1,118 $1,823
ASSUMING NO REDEMPTION $172 $533 $ 918 $1,823
I SHARES $ 81 $252 $ 439 $ 978
PRO FORMA COMBINED BOND FUND
A SHARES $576 $790 $1,022 $1,686
B SHARES
ASSUMING REDEMPTION $672 $933 $1,118 $1,823
ASSUMING NO REDEMPTION $172 $533 $ 918 $1,823
I SHARES $ 81 $252 $ 439 $ 978
</TABLE>
C-8
<PAGE> 97
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PARKSTONE ARMADA PRO FORMA COMBINED
U.S. GOVERNMENT INCOME FUND U.S. GOVERNMENT INCOME FUND(12) U.S. GOVERNMENT INCOME FUND
------------------------------- -------------------------------- -----------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 4.75%(1) None None 4.75%(8) None None 4.75% None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00% None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .55% .55% .55% .55% .55% .55% .55% .55% .55%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .35% .35% .35% .43%(10) .43%(10) .18% .43%(10) .43%(10) .18%
Total Operating Expenses 1.15%(13) 1.90%(13) 0.90%(7,13) 1.08%(11) 1.73%(11) .83%(1 1) 1.08%(11) 1.73%(11) .83%(11)
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00%, for redemptions of such
shares made within one year of the date of purchase. In addition, with
respect to all Funds, although no such fee is currently in place, the
Transfer Agent has reserved the right in the future to charge a fee for
wire transfers of redemption proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) "Other Expenses" are based on estimated amounts for the current fiscal
year.
(11) The Distributor plans to waive a portion of its fees for the current fiscal
year. The Distributor may revise or cancel this expense limitation at any
time and will notify you of any material change.
(12) The Fund has not yet commenced operations.
(13) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 1.10% for Investor A Shares, 1.85% for Investor
B Shares and 0.85% for Institutional Shares.
C-9
<PAGE> 98
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE U.S. GOVERNMENT
INCOME FUND
INVESTOR A SHARES $587 $823 $1,078 $1,806
INVESTOR B SHARES
ASSUMING REDEMPTION $693 $997 $1,226 $1,935
ASSUMING NO REDEMPTION $193 $597 $1,026 $1,935
INSTITUTIONAL SHARES $ 92 $287 $ 498 $1,108
ARMADA U.S. GOVERNMENT
INCOME FUND
A SHARES $580 $802 N/A N/A
B SHARES
ASSUMING REDEMPTION $676 $945 N/A N/A
ASSUMING NO REDEMPTION $176 $545 N/A N/A
I SHARES $ 85 $265 N/A N/A
PRO FORMA COMBINED U.S.
GOVERNMENT INCOME FUND
A SHARES $580 $802 N/A N/A
B SHARES
ASSUMING REDEMPTION $676 $945 N/A N/A
ASSUMING NO REDEMPTION $176 $545 N/A N/A
I SHARES $ 85 $265 N/A N/A
</TABLE>
C-10
<PAGE> 99
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE LIMITED MATURITY BOND FUND ARMADA LIMITED MATURITY BOND FUND LIMITED MATURITY BOND FUND
------------------------------------- ----------------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed
on Purchases 2.75%(1) None None 2.75%(8) None None 2.75%(8) None None
Maximum Sales Load Imposed
on Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Management Fees .45% .45% .45% .45% .45% .45% .45% .45% .45%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .33% .33% .33% .28% .28% .18% .25% .25% .15%
Total Operating Expenses 1.03%(10) 1.78%(10) .78%(7,10) .83%(11) 1.48%(11) .73%(11) .80% 1.45% .70%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of .25% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%; 3.0% and 2.0% for redemptions made
during the third through fifth years respectively. No deferred sales
charges is charged after the fifth year.
(10) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 0.98% for Investor A Shares, 1.73% for Investor
B Shares and 0.73% for Institutional Shares.
(11) The Fund's Adviser and Distributor are each waiving a portion of the fees
in order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.63% for
Class A Shares, 1.38% for Class B Shares and 0.53% for Class I Shares.
C-11
<PAGE> 100
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE LIMITED MATURITY
BOND FUND
INVESTOR A SHARES $377 $594 $ 828 $1,500
INVESTOR B SHARES
ASSUMING REDEMPTION $681 $960 $1,164 $1,804
ASSUMING NO REDEMPTION $181 $560 $ 964 $1,804
INSTITUTIONAL SHARES $ 80 $249 $ 433 $ 966
ARMADA LIMITED MATURITY BOND
FUND
A SHARES $357 $533 $ 723 $1,272
B SHARES
ASSUMING REDEMPTION $651 $868 $1,008 $1,591
ASSUMING NO REDEMPTION $151 $468 $ 808 $1,591
I SHARES $ 75 $233 $ 406 $ 906
PRO FORMA COMBINED LIMITED
MATURITY BOND FUND
A SHARES $354 $523 $ 707 $1,238
B SHARES
ASSUMING REDEMPTION $648 $859 $ 992 $1,557
ASSUMING NO REDEMPTION $148 $459 $ 792 $1,557
I SHARES $ 72 $224 $ 390 $ 871
</TABLE>
C-12
<PAGE> 101
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PARKSTONE INTERMEDIATE PRO FORMA COMBINED
GOVERNMENT OBLIGATIONS FUND ARMADA INTERMEDIATE BOND FUND INTERMEDIATE BOND FUND
------------------------------- ----------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 4.75%(1) None None 4.75%(8) None None 4.75%(8) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .55% .55% .55% .55% .55% .55% .55% .55% .55%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .34% .34% .34% .40% .40% .15% .38% .38% .13%
Total Operating Expenses 1.14%(10) 1.89%(10) 0.89%(7,10) 1.05%(11) 1.70%(11) .80%(11) 1.03% 1.68% .78%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years respectively. No deferred sales charge
is charged after the fifth year
(10) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 1.09% for Investor A Shares, 1.84% for Investor
B Shares and 0.84% for Institutional Shares.
(11) The Fund's Adviser and Distributor are each waiving a portion of the fees
in order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.84% for
Class A Shares, 1.55% for Class B Shares and 0.59% for Class I Shares.
C-13
<PAGE> 102
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE INTERMEDIATE
GOVERNMENT OBLIGATIONS FUND
INVESTOR A SHARES $586 $820 $1,073 $1,795
INVESTOR B SHARES
ASSUMING REDEMPTION $692 $994 $1,221 $1,924
ASSUMING NO REDEMPTION $192 $594 $1,021 $1,924
INSTITUTIONAL SHARES $ 91 $284 $ 493 $1,096
ARMADA INTERMEDIATE BOND
FUND
A SHARES $577 $793 $1,027 $1,697
B SHARES
ASSUMING REDEMPTION $673 $936 $1,123 $1,834
ASSUMING NO REDEMPTION $173 $536 $ 923 $1,834
I SHARES $ 82 $255 $ 444 $ 990
PRO FORMA COMBINED
INTERMEDIATE BOND FUND
A SHARES $575 $787 $1,017 $1,675
B SHARES
ASSUMING REDEMPTION $671 $930 $1,113 $1,813
ASSUMING NO REDEMPTION $171 $530 $ 913 $1,813
I SHARES $ 80 $249 $ 433 $ 966
</TABLE>
C-14
<PAGE> 103
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE EQUITY INCOME FUND ARMADA EQUITY INCOME FUND EQUITY INCOME FUND
------------------------------- -------------------------- ---------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 5.50%(1) None None 5.50%(8) None None 5.50%(8) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .75% .75% .75% .75% .75 .75% .75% .75% .75%
12b-1 Fees .25%(5) 1.00% .00% .10% .75 .10% .10% .75% .10%
Other Expenses .34% .34% .34% .39% .39% .14% .38% .38% .13%
Total Operating Expenses 1.34% 2.09% 1.09%(7) 1.24%(10) 1.89% .99%(10) 1.23% 1.88% .98%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Fund's Distributor is waiving a portion of the fees in order to keep
operating expenses at a specified level. The Adviser and Distributor may
discontinue all or part of these waivers at any time. With these waivers,
the Fund's actual total operating expenses are 1.18% for Class A Shares and
0.93% for Class I Shares.
C-15
<PAGE> 104
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE EQUITY INCOME
FUND
INVESTOR A SHARES $679 $ 951 $1,244 $2,074
INVESTOR B SHARES
ASSUMING REDEMPTION $712 $1,055 $1,324 $2,139
ASSUMING NO REDEMPTION $212 $ 655 $1,124 $2,139
INSTITUTIONAL SHARES $111 $ 347 $ 601 $1,329
ARMADA EQUITY INCOME FUND
A SHARES $669 $ 922 $1,194 $1,967
B SHARES
ASSUMING REDEMPTION $692 $ 994 $1,221 $2,040
ASSUMING NO REDEMPTION $192 $ 594 $1,021 $2,040
I SHARES $101 $ 315 $ 547 $1,213
PRO FORMA COMBINED EQUITY
INCOME FUND
A SHARES $668 $ 919 $1,188 $1,957
B SHARES
ASSUMING REDEMPTION $691 $ 991 $1,216 $2,030
ASSUMING NO REDEMPTION $191 $ 591 $1,016 $2,030
I SHARES $100 $ 312 $ 542 $1,201
</TABLE>
C-16
<PAGE> 105
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE SMALL CAPITALIZATION FUND ARMADA SMALL CAP GROWTH FUND SMALL CAP GROWTH FUND
------------------------------------- ----------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 5.50%(1) None None 5.50%(8) None None 5.50%(8) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .45% .45% 45% .42% .42% .17% .38% .38% .13%
Total Operating Expenses 1.70% 2.45% 1.45%(7) 1.52%(10) 2.17% 1.27%(10) 1.48% 2.13% 1.23%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Fund's Distributor is waiving a portion of the fees in order to keep
operating expenses at a specified level. The Distributor may discontinue
all or part of these waivers at any time. With these waivers, the Fund's
actual total operating expenses are 1.46% for Class A Shares and 1.21% for
Class I Shares.
C-17
<PAGE> 106
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE SMALL
CAPITALIZATION FUND
INVESTOR A SHARES $713 $1,056 $1,422 $2,448
INVESTOR B SHARES
ASSUMING REDEMPTION $748 $1,164 $1,506 $2,514
ASSUMING NO REDEMPTION $248 $ 764 $1,306 $2,514
INSTITUTIONAL SHARES $148 $ 459 $ 792 $1,735
ARMADA SMALL CAP GROWTH
FUND
A SHARES $696 $1,004 $1,333 $2,263
B SHARES
ASSUMING REDEMPTION $720 $1,079 $1,364 $2,336
ASSUMING NO REDEMPTION $220 $ 679 $1,164 $2,336
I SHARES $129 $ 403 $ 697 $1,534
PRO FORMA COMBINED SMALL
CAP GROWTH FUND
A SHARES $692 $ 992 $1,313 $2,231
B SHARES
ASSUMING REDEMPTION $716 $1,067 $1,344 $2,294
ASSUMING NO REDEMPTION $216 $ 667 $1,144 $2,294
I SHARES $125 $ 390 $ 676 $1,489
</TABLE>
C-18
<PAGE> 107
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE INTERNATIONAL DISCOVERY FUND ARMADA INTERNATIONAL EQUITY FUND INTERNATIONAL EQUITY FUND
--------------------------------------- -------------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed
on Purchases 5.50%(1) None None 5.50%(8) None None 5.50%(8) None None
Maximum Sales Load Imposed
on Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Management Fees 1.15% 1.15% 1.15% 1.15% 1.15% 1.15% 1.15% 1.15% 1.15%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .41% .41% .41% .48% .48% .23% .46% .46% .21%
Total Operating Expenses 1.81% 2.56% 1.56%(7) 1.73%(10) 2.38% 1.48%(10) 1.71% 2.36% 1.46%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This sales charge varies depending upon how much you invest.
( 9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Fund's Distributor is waiving a portion of the fees in order to keep
operating expenses at a specified level. The Distributor may discontinue
all or part of these waivers at any time. With these waivers, the Fund's
actual total operating expenses are 1.67% for Class A Shares and 1.42% for
Class I Shares.
C-19
<PAGE> 108
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE INTERNATIONAL
DISCOVERY FUND
INVESTOR A SHARES $724 $1,088 $1,476 $2,560
INVESTOR B SHARES
ASSUMING REDEMPTION $759 $1,196 $1,560 $2,626
ASSUMING NO REDEMPTION $259 $ 796 $1,360 $2,626
INSTITUTIONAL SHARES $159 $ 493 $ 850 $1,856
ARMADA INTERNATIONAL EQUITY
FUND
A SHARES $716 $1,065 $1,437 $2,479
B SHARES
ASSUMING REDEMPTION $741 $1,142 $1,470 $2,552
ASSUMING NO REDEMPTION $241 $ 742 $1,270 $2,552
I SHARES $151 $ 468 $ 808 $1,768
PRO FORMA COMBINED
INTERNATIONAL EQUITY FUND
A SHARES $714 $1,059 $1,427 $2,458
B SHARES
ASSUMING REDEMPTION $739 $1,136 $1,460 $2,532
ASSUMING NO REDEMPTION $239 $ 736 $1,260 $2,532
I SHARES $149 $ 462 $ 797 $1,746
</TABLE>
C-20
<PAGE> 109
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE BALANCED ALLOCATION FUND ARMADA BALANCED ALLOCATION FUND BALANCED ALLOCATION FUND
------------------------------------ ------------------------------- ----------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed
on Purchases 4.75%(1) None None 4.75%(8) None None 4.75%(8) None None
Maximum Sales Load Imposed
on Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .75% .75% .75% .75% .75% .75% .75% .75% .75%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .36% .36% .36% .46% .46% .21% .38% .38% .13%
Total Operating Expenses 1.36% 2.11% 1.11%(7) 1.31%(10) 1.96% 1.06%(10) 1.23% 1.88% .98%
</TABLE>
(1) The sales charge may be reduced or eliminated under certain circumstances.
(2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
(3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
(5) The CDSC on Investor B Shares declines over four years starting with year
one and ending in year six from: 5.00%; 5.00% 4.00%; 3.00%; 2.00%. Investor
B Shares which were purchased prior to January 1, 1997, are subject to a
CDSC which declines over four years ending in year five from: 4.00%; 4.00%;
3.00%; 2.00%.
(6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
(8) This sales charge varies depending upon how much you invest.
(9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third, fourth and fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Fund's Distributor is waiving a portion of the fees in order to keep
operating expenses at a specified level. The Distributor may discontinue
all or part of these waivers at any time. With these waivers, the Fund's
actual total operating expenses are 1.25% for Class A Shares and 1.00% for
Class I Shares.
C-21
<PAGE> 110
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE BALANCED
ALLOCATION FUND
INVESTOR A SHARES $607 $ 885 $1,184 $2,032
INVESTOR B SHARES
ASSUMING REDEMPTION $714 $1,061 $1,334 $2,160
ASSUMING NO REDEMPTION $214 $ 661 $1,134 $2,160
INSTITUTIONAL SHARES $113 $ 353 $ 612 $1,352
ARMADA BALANCED ALLOCATION
FUND
A SHARES $602 $ 870 $1,159 $1,979
B SHARES
ASSUMING REDEMPTION $699 $1,015 $1,257 $2,115
ASSUMING NO REDEMPTION $199 $ 615 $1,057 $2,115
I SHARES $108 $ 337 $ 585 $1,294
PRO FORMA COMBINED BALANCED
ALLOCATION FUND
A SHARES $594 $ 847 $1,119 $1,893
B SHARES
ASSUMING REDEMPTION $681 $ 991 $1,216 $2,030
ASSUMING NO REDEMPTION $191 $ 591 $1,016 $2,030
I SHARES $100 $ 312 $ 542 $1,201
</TABLE>
C-22
<PAGE> 111
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PARKSTONE NATIONAL TAX EXEMPT ARMADA NATIONAL TAX EXEMPT PRO FORMA COMBINED
BOND FUND BOND FUND NATIONAL TAX EXEMPT BOND FUND
----------------------------------- ------------------------------ -----------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed
on Purchases 4.75%(1) None None 4.75%(8) None None 4.75%(8) None None
Maximum Sales Load Imposed
on Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(9) None None 5.00%(9) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Management Fees .55% .55% .55% .55% .55% .55% .55% .55% .55%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .41% .40% .41% .25% .25% .15% .24% .24% .14%
Total Operating Expenses 1.21%(10) 1.95%(10) 0.96%(7,10) .90%(11) 1.55%(11) .80%(11) .89% 1.54% .79%
</TABLE>
(1) The sales charge may be reduced or eliminated under certain circumstances.
(2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
(3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
(5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
(6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
(8) This sales charge varies depending upon how much you invest.
(9) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(10) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 1.11% for Investor A Shares, 1.85% for Investor
B Shares and 0.86% for Institutional Shares.
(11) The Fund's Adviser and Distributor are each waiving a portion of the fees
in order to keep operating expenses at a specified level. The Adviser and
Distributor may discontinue all or part of these waivers at any time. With
these waivers, the Fund's actual total operating expenses are 0.69% for
Class A Shares, 1.40% for Class B Shares and 0.59% for Class I Shares.
C-23
<PAGE> 112
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE NATIONAL TAX
EXEMPT BOND FUND
INVESTOR A SHARES $592 $ 841 $1,108 $1,871
INVESTOR B SHARES
ASSUMING REDEMPTION $698 $1,012 $1,252 $1,993
ASSUMING NO REDEMPTION $198 $ 612 $1,052 $1,993
INSTITUTIONAL SHARES $ 98 $ 306 $ 531 $1,178
ARMADA NATIONAL TAX EXEMPT
BOND FUND
A SHARES $562 $ 748 $ 950 $1,530
B SHARES
ASSUMING REDEMPTION $658 $ 890 $1,045 $1,669
ASSUMING NO REDEMPTION $158 $ 490 $ 845 $1,669
I SHARES $ 82 $ 255 $ 444 $ 990
PRO FORMA COMBINED NATIONAL
TAX EXEMPT BOND FUND
A SHARES $562 $ 745 $ 945 $1,519
B SHARES
ASSUMING REDEMPTION $657 $ 886 $1,039 $1,658
ASSUMING NO REDEMPTION $157 $ 486 $ 839 $1,658
I SHARES $ 81 $ 252 $ 439 $ 978
</TABLE>
C-24
<PAGE> 113
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE LARGE CAPITALIZATION FUND ARMADA LARGE CAP ULTRA FUND(12) LARGE CAP ULTRA FUND
----------------------------------- ------------------------------- -----------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER
TRANSACTION EXPENSES
Maximum Sales Load
Imposed on Purchases 5.50%(1) None None 5.50%(8) None None 5.50%(8) None None
Maximum Sales Load
Imposed on Reinvested
Dividends None None None None None None None None None
Contingent Deferred
Sales Charge None 5.00%(5) None None 5.00%(11) None None 5.00%(11) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Management Fees .75% .75% .75% .75% .75% .75% .75% .75% .75%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .31% .31% .30% .43%(9) .43%(9) .18%(9) .43%(9) .43%(9) .18%(9)
Total Operating
Expenses 1.31% 2.06% 1.05%(7) 1.28%(10) 1.93%(10) 1.03% 1.28%(10) 1.93%(10) 1.03%
</TABLE>
(1) The sales charge may be reduced or eliminated under certain circumstances.
(2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
(3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
(5) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
(6) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
(8) This sales charge varies depending upon how much you invest.
(9) "Other Expenses" are based on estimated amounts for the current fiscal
year.
(10) The Distributor plans to waive a portion of its fees for the current fiscal
year. The Distributor may revise or cancel this expense limitation at any
time and will notify you of any material change.
(11) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(12) This Fund has not yet commenced operations.
C-25
<PAGE> 114
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE LARGE
CAPITALIZATION FUND
INVESTOR A SHARES $676 $ 942 $1,229 $2,042
INVESTOR B SHARES
ASSUMING REDEMPTION $709 $1,046 $1,308 $2,104
ASSUMING NO REDEMPTION $209 $ 646 $1,108 $2,104
INSTITUTIONAL SHARES $107 $ 334 $ 579 $1,283
ARMADA LARGE CAP ULTRA FUND
A SHARES $673 $ 934 N/A N/A
B SHARES
ASSUMING REDEMPTION $696 $1,006 N/A N/A
ASSUMING NO REDEMPTION $196 $ 606 N/A N/A
I SHARES $105 $ 328 N/A N/A
PRO FORMA COMBINED LARGE
CAP ULTRA FUND
A SHARES $673 $ 934 N/A N/A
B SHARES
ASSUMING REDEMPTION $696 $1,006 N/A N/A
ASSUMING NO REDEMPTION $196 $ 606 N/A N/A
I SHARES $105 $ 328 N/A N/A
</TABLE>
C-26
<PAGE> 115
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
PARKSTONE MID CAPITALIZATION FUND ARMADA MID CAP GROWTH FUND(12) MID CAP GROWTH FUND
---------------------------------- -------------------------------- --------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 5.50%(1) None None 5.50%(8) None None 5.50%(8) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(11) None None 5.00%(11) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .32% .32% .32% .47%(9) .47%(9) .22%(9) .47%(9) .47%(9) .22%(9)
Total Operating Expenses 1.57% 2.32% 1.32%(7) 1.57%(10) 2.22%(10) 1.32% 1.57%(10) 2.22%(10) 1.32%
</TABLE>
(1 ) The sales charge may be reduced or eliminated under certain circumstances.
(2 ) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such
shares made within one year of the date of purchase. In addition, with
respect to all Funds, although no such fee is currently in place, the
Transfer Agent has reserved the right in the future to charge a fee for
wire transfers of redemptions proceeds.
(3 ) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(4 ) Shareholders should be aware that due to the distribution fees, a
long-term shareholder in a Fund may pay over time more than the economic
equivalent of the maximum front-end sales charge permitted under the rules
of the National Association of Securities Dealers, Inc.
(5 ) The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
(6 ) Although no such fee is currently in place, the Transfer Agent has
reserved the right in the future to charge a fee for wire transfers of
redemption proceeds.
(7 ) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
(8 ) This sales charge varies depending upon how much you invest.
(9 ) "Other Expenses" are based on estimated amounts for the current fiscal
year.
(10) The Distributor plans to waive a portion of its fees for the current fiscal
year. The Distributor may revise or cancel this expense limitation at any
time and will notify you of any material change.
(11) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(12) This Fund has not yet commenced operations.
C-27
<PAGE> 116
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE MID
CAPITALIZATION FUND
INVESTOR A SHARES $701 $1,018 $1,358 $2,315
INVESTOR B SHARES
ASSUMING REDEMPTION $735 $1,124 $1,440 $2,381
ASSUMING NO REDEMPTION $235 $ 724 $1,240 $2,381
INSTITUTIONAL SHARES $134 $ 418 $ 723 $1,590
ARMADA MID CAP GROWTH FUND
A SHARES $701 $1,018 N/A N/A
B SHARES
ASSUMING REDEMPTION $725 $1,094 N/A N/A
ASSUMING NO REDEMPTION $225 $ 694 N/A N/A
I SHARES $134 $ 418 N/A N/A
PRO FORMA COMBINED MID CAP
GROWTH FUND
A SHARES $701 $1,018 N/A N/A
B SHARES
ASSUMING REDEMPTION $725 $1,094 N/A N/A
ASSUMING NO REDEMPTION $225 $ 694 N/A N/A
I SHARES $134 $ 418 N/A N/A
</TABLE>
C-28
<PAGE> 117
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PARKSTONE ARMADA PRO FORMA COMBINED
MICHIGAN MUNICIPAL BOND FUND MICHIGAN MUNICIPAL BOND FUND(8) MICHIGAN MUNICIPAL BOND FUND
------------------------------- -------------------------------- -----------------------------
INVESTOR INVESTOR INSTITUTIONAL
A SHARES B SHARES SHARES A SHARES B SHARES I SHARES A SHARES B SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on
Purchases 4.75%(1) None None 4.75%(9) None None 4.75%(10) None None
Maximum Sales Load Imposed on
Reinvested Dividends None None None None None None None None None
Contingent Deferred Sales
Charge None 5.00%(5) None None 5.00%(12) None None 5.00%(13) None
Redemption Fee None(2) None(6) None(6) None None None None None None
Exchange Fee None(3) None None None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fees .55% .55% .55% .55% .55% .55% .55% .55% .55%
12b-1 Fees .25%(4) 1.00% .00% .10% .75% .10% .10% .75% .10%
Other Expenses .31% .31% .31% .43%(10) .43%(10) .18%(10) 43%(10) .43%(10) .18%(10)
Total Operating Expenses 1.11%(13) 1.86%(13) 0.86%(7,13) 1.08%(11) 1.73%(11) .83% 1.08%(11) 1.73%(11) .83%
</TABLE>
( 1) The sales charge may be reduced or eliminated under certain circumstances.
( 2) Investors who invest $1,000,000 or more in Investor A Shares of the Funds
will be subject to a redemption fee of 1.00% for redemptions of such shares
made within one year of the date of purchase. In addition, with respect to
all Funds, although no such fee is currently in place, the Transfer Agent
has reserved the right in the future to charge a fee for wire transfers of
redemptions proceeds.
( 3) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
( 4) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent
of the maximum front end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc.
( 5 )The CDSC on Investor B Shares declines over five years starting with year
one and ending in year six from: 5.00%; 5.00%; 4.00%; 3.00%; 2.00%.
Investor B Shares which were purchased prior to January 1, 1997, are
subject to a CDSC which declines over four years ending in year five from:
4.00%; 4.00%; 3.00%; 2.00%.
( 6 )Although no such fee is currently in place, the Transfer Agent has
reserved the right in the future to charge a fee for wire transfers of
redemption proceeds.
( 7) Certain purchases of the Funds through financial institutions may be
subject to fees for additional services provided to investors.
( 8) This Fund has not yet commenced operation.
( 9) This sales charge varies depending upon how much you invest.
(10) "Other Expenses" are based on estimated amounts for the current fiscal
year.
(11) The Distributor plans to waive a portion of its fees for the current fiscal
year. The Distributor may revise or cancel this expense limitation at any
time and will notify you of any material change.
(12) This amount applies to redemptions during the first and second years. The
deferred sales charge decreases to 4.0%, 3.0% and 2.0% for redemptions made
during the third through fifth years, respectively. No deferred sales
charge is charged after the fifth year.
(13) The Administrator is currently waiving a portion of its fees for the
current year. With these fee waivers the Fund's actual total operating
expenses are expected to be 1.01% for Investor A Shares, 1.76% for Investor
B Shares and 0.76% for Institutional Shares.
C-29
<PAGE> 118
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return, Fund
expenses remain the same and your
Class B Shares convert to Class A
Shares after eight years. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE MICHIGAN MUNICIPAL
BOND FUND
INVESTOR A SHARES $583 $811 $1,058 $1,762
INVESTOR B SHARES
ASSUMING REDEMPTION $689 $985 $1,206 $1,892
ASSUMING NO REDEMPTION $189 $585 $1,006 $1,892
INSTITUTIONAL SHARES $ 88 $274 $ 477 $1,061
ARMADA MICHIGAN MUNICIPAL
BOND FUND
A SHARES $580 $802 N/A N/A
B SHARES
ASSUMING REDEMPTION $676 $945 N/A N/A
ASSUMING NO REDEMPTION $176 $545 N/A N/A
I SHARES $ 85 $265 N/A N/A
PRO FORMA COMBINED MICHIGAN
MUNICIPAL BOND FUND
A SHARES $580 $802 N/A N/A
B SHARES
ASSUMING REDEMPTION $676 $945 N/A N/A
ASSUMING NO REDEMPTION $176 $545 N/A N/A
I SHARES $ 85 $265 N/A N/A
</TABLE>
C-30
<PAGE> 119
FEE AND EXPENSE TABLES
(UNAUDITED)
AS OF 11/30/99
<TABLE>
<CAPTION>
PRO FORMA COMBINED
ARMADA TREASURY PLUS TREASURY PLUS
PARKSTONE TREASURY FUND MONEY MARKET FUND(5) MONEY MARKET FUND
------------------------ --------------------- -------------------
INVESTOR INSTITUTIONAL
A SHARES SHARES A SHARES I SHARES A SHARES I SHARES
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Maximum Sales Load Imposed on Purchases None None None None None None
Maximum Sales Load Imposed on Reinvested Dividends None None None None None None
Contingent Deferred Sales Charge None None None None None None
Redemption Fee None(3) None(3) None None None None
Exchange Fee None(1) None None None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees .30% .30% .30% .30% .30% .30%
12b-1 Fees .25%(2) .00% .10% .10% .10% .10%
Other Expenses .26% .28% .31%(6) .16%(6) .31%(6) .16%(6)
Total Operating Expenses .81%(8) .58%(4,8) .71%(7) .56% .71%(7) .56%
</TABLE>
(1) Exchanges into a Non-Money Market Fund from a Money Market Fund will be
normally subject to a sales charge.
(2) Shareholders should be aware that due to the distribution fees, a long-term
shareholder in a Fund may pay over time more than the economic equivalent of
the maximum front-end sales charge permitted under the rules of the National
Association of Securities Dealers, Inc.
(3) Although no such fee is currently in place, the Transfer Agent has reserved
the right in the future to charge a fee for wire transfers of redemption
proceeds.
(4) Certain purchases of the Funds through financial institutions may be subject
to fees for additional services provided to investors.
(5) This Fund has not yet commenced operations.
(6) "Other Expenses" are based on estimated amounts for the current fiscal year.
(7) The Distributor plans to waive a portion of its fees for the current fiscal
year. The Distributor may revise or cancel this expense limitation at any
time and will notify you of any material change.
(8) The Administrator and Distributor are each currently waiving a portion of
their fees for the current year. With these fee waivers the Fund's actual
total operating expenses are expected to be 0.57% for Investor A Shares and
0.48% for Institutional Shares.
C-31
<PAGE> 120
EXAMPLE:
This Example is intended to help you
compare the cost of investing in the
Funds with the cost of investing in
other mutual funds. The Example
assumes that you invest $10,000 in
the Funds for the time periods
indicated and then redeem all of your
shares at the end of those periods.
The Example also assumes that your
investment has a 5% return and Fund
expenses remain the same. Although
your actual costs may be higher or
lower, based on these assumptions
your costs would be:
EXPENSE EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
PARKSTONE TREASURY FUND
INVESTOR A SHARES $83 $259 $450 $1,002
INSTITUTIONAL SHARES $59 $186 $324 $ 726
ARMADA TREASURY PLUS
MONEY MARKET FUND
A SHARES $73 $227 N/A N/A
I SHARES $57 $199 N/A N/A
PRO FORMA COMBINED TREASURY
PLUS MONEY MARKET FUND
A SHARES $73 $227 N/A N/A
I SHARES $57 $199 N/A N/A
</TABLE>
C-32
<PAGE> 121
APPENDIX D
SHAREHOLDER TRANSACTIONS AND SERVICES
This Appendix compares the shareholder transactions and services that are
available in connection with: (1) Class A Shares, Class B Shares and Class I
Shares of Armada, and (2) Investor A Shares, Investor B Shares and Institutional
Shares of Parkstone.
The following is qualified in its entirety by the more detailed information
included in the applicable Prospectuses which are incorporated by reference in
this Combined Proxy/Prospectus Statement. Unless otherwise indicated, terms used
herein and not otherwise defined have the same meaning as are given to them in
such Prospectuses.
D-1
<PAGE> 122
ACCOUNT POLICIES FOR ARMADA FUNDS(1) AND THE CORRESPONDING PARKSTONE FUNDS(2)
A. SALES CHARGES AND EXEMPTIONS
1. Armada Class A Shares/Parkstone Investor A Shares:
(a) Armada Class A Shares -- Class A Shares are sold at their public offering
price. This price includes the initial sales charge. Therefore, part of the
money you invest will be used to pay the sales charge. The remainder is invested
in Fund Shares. The sales charge decreases with larger purchases. There is no
sales charge on reinvested dividends and distributions.
The current sales charge rates are as follows:
For the Armada National Tax Exempt Bond; Balanced Allocation; Intermediate Bond;
Bond; U.S. Government Income; and Michigan Municipal Bond Funds:
<TABLE>
<CAPTION>
AS A % OF DEALERS' REALLOWANCE
OFFERING AS A % OF NET ASSET AS A % OF OFFERING
AMOUNT OF TRANSACTION PRICE PER SHARE VALUE PER SHARE PRICE PER SHARE
- --------------------- --------------- ------------------- --------------------
<S> <C> <C> <C>
Less than $50,000................................ 4.75% 5.00% 4.50%
$50,000 but less than $100,000................... 4.00% 4.20% 3.75%
$100,000 but less than $250,000.................. 3.75% 3.90% 3.50%
$250,000 but less than $500,000.................. 2.50% 2.80% 2.25%
$500,000 but less than $1,000,000................ 2.00% 2.00% 1.75%
$1,000,000 or more............................... 0.00% 0.00% 0.00%
</TABLE>
For the Armada International Equity; Equity Income; Small Cap Growth; Mid Cap
Growth; and Large Cap Ultra Funds:
<TABLE>
<CAPTION>
AS A % OF DEALERS' REALLOWANCE
OFFERING AS A % OF NET ASSET AS A % OF OFFERING
AMOUNT OF TRANSACTION PRICE PER SHARE VALUE PER SHARE PRICE PER SHARE
- --------------------- --------------- ------------------- --------------------
<S> <C> <C> <C>
Less than $25,000................................ 5.50% 5.80% 5.25%
$25,000 but less than $50,000.................... 5.25% 5.50% 5.00%
$50,000 but less than $100,000................... 4.75% 5.00% 4.50%
$100,000 but less than $250,000.................. 3.75% 3.90% 3.50%
$250,000 but less than $500,000.................. 3.00% 3.10% 2.75%
$500,000 but less than $1,000,000................ 2.00% 2.00% 1.75%
$1,000,000 or more............................... 0.00% 0.00% 0.00%
</TABLE>
For the Armada Limited Maturity Bond Fund:
<TABLE>
<CAPTION>
AS A % OF DEALERS' REALLOWANCE
OFFERING AS A % OF NET ASSET AS A % OF NET ASSET
AMOUNT OF TRANSACTION PRICE PER SHARE VALUE PER SHARE VALUE PER SHARE
- --------------------- --------------- ------------------- --------------------
<S> <C> <C> <C>
Less than $100,000............................... 2.75% 2.83% 2.50%
$100,000 but less than $250,000.................. 1.75% 1.78% 1.50%
$250,000 but less than $500,000.................. 1.00% 1.01% 0.75%
$500,000 but less than $1,000,000................ 0.50% 0.50% 0.25%
$1,000,000 or more............................... 0.00% 0.00% 0.00%
</TABLE>
- ---------------
(1) Includes Class A Shares, Class B Shares and Class I Shares, as
applicable, of: Armada Money Market Fund, Government Money Market Fund,
Tax Exempt Money Market Fund and Treasury Plus Money Market Fund
(collectively, the "Money Market Series"); Armada Bond Fund, U.S.
Government Income Fund, Limited Maturity Bond Fund and Intermediate Bond
Fund, (collectively, the "Income Series"); Armada Large Cap Ultra Fund,
Equity Income Fund, Small Cap Growth Fund, International Equity Fund and
Mid Cap Growth Fund (collectively, the "Equity Series"); Armada Balanced
Allocation Fund; and Armada National Tax Exempt Bond Fund and Michigan
Municipal Bond Fund (collectively, the "Tax Exempt Series").
(2) Includes Investor A Shares, Investor B Shares and Institutional Shares,
as applicable, of: Parkstone Prime Obligations Fund, U.S. Government
Obligations Fund, Treasury Fund and Tax-Free Fund (collectively
"Parkstone Money Market Funds"); Parkstone Bond Fund, Limited Maturity
Bond Fund, Intermediate Government Obligations Fund and U.S. Government
Income Fund (collectively, the "Parkstone Income Funds"); Parkstone Small
Capitalization Fund, Mid Capitalization Fund, Large Capitalization Fund
and International Discovery Fund (collectively, the "Parkstone Growth
Funds"); Parkstone Balanced Allocation Fund and Equity Income Fund
(collectively, the "Parkstone Growth and Income Funds"); Parkstone
National Tax Exempt Bond Fund and Michigan Municipal Bond Fund
(collectively, the "Parkstone Tax-Free Income Funds").
D-2
<PAGE> 123
A 1% sales charge, or 0.25% in the case of the Limited Maturity Bond Fund, will
be assessed against a shareholder's fund account if its value falls below
$1,000,000 due to a redemption by the shareholder within the first year
following the initial investment of $1,000,000 or more. With respect to
purchases of $1,000,000 or more of the Fund, the Adviser may pay from its own
funds a fee of 1%, or 0.25% in the case of the Limited Maturity Bond Fund, of
the amount invested to the financial institution placing the purchase order.
(b) Parkstone Investor A Shares -- Investor A Shares are sold at their public
offering price. This price includes the initial sales charge. Therefore, part of
the money you invest will be used to pay the sales charge. The remainder is
invested in Fund Shares. The sales charge decreases with larger purchases. There
is no sales charge on reinvested dividends and distributions.
The current sales charge rates are as follows:
For the Parkstone International Discovery, Small Capitalization, Mid
Capitalization, Large Capitalization and Equity Income Funds:
<TABLE>
<CAPTION>
AS A % OF AS A % OF NET DEALERS' REALLOWANCE
OFFERING AMOUNT AS A % OF OFFERING
AMOUNT OF TRANSACTION PRICE PER SHARE INVESTED PRICE PER SHARE
- --------------------- --------------- ------------- --------------------
<S> <C> <C> <C>
Less than $25,000.................................... 5.50% 5.80% 5.25%
$25,000 but less than $50,000........................ 5.25% 5.50% 5.00%
$50,000 but less than $100,000....................... 4.75% 5.00% 4.50%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.50%
$250,000 but less than $500,000...................... 3.00% 3.10% 2.75%
$500,000 but less than $1,000,000.................... 2.00% 2.00% 1.75%
$1,000,000 or more................................... 0.00% 0.00% 0.00%
</TABLE>
For the Balanced Allocation, Bond, Intermediate Government Obligations, U.S.
Government Income, Michigan Municipal Bond and National Tax Exempt Bond Funds:
<TABLE>
<CAPTION>
AS A % OF AS A % OF NET DEALERS' REALLOWANCE
OFFERING AMOUNT AS A % OF OFFERING
AMOUNT OF TRANSACTION PRICE PER SHARE INVESTED PRICE PER SHARE
- --------------------- --------------- ------------- --------------------
<S> <C> <C> <C>
Less than $50,000.................................... 4.75% 5.00% 4.50%
$50,000 but less than $100,000....................... 4.00% 4.20% 3.75%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.50%
$250,000 but less than $500,000...................... 2.50% 2.80% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.00% 1.75%
$1,000,000 or more................................... 0.00% 0.00% 0.00%
</TABLE>
For the Limited Maturity Bond Fund:
<TABLE>
<CAPTION>
AS A % OF AS A % OF NET DEALERS' REALLOWANCE
OFFERING AMOUNT AS A % OF OFFERING
AMOUNT OF TRANSACTION PRICE PER SHARE INVESTED PRICE PER SHARE
- --------------------- --------------- ------------- --------------------
<S> <C> <C> <C>
Less than $100,000................................... 2.75% 2.83% 2.50%
$100,000 but less than $250,000...................... 1.75% 1.78% 1.50%
$250,000 but less than $500,000...................... 1.00% 1.01% 0.75%
$500,000 but less than $1,000,000.................... 0.50% 0.50% 0.25%
$1,000,000 or more................................... 0.00% 0.00% 0.00%
</TABLE>
With respect to each of the above-mentioned Parkstone Funds, a 1.00% redemption
fee, or 0.25% in the case of the Limited Maturity Bond Fund, will be assessed
against a shareholder's fund account if it's value falls below $1,000,000 due to
a redemption by the shareholder within the first year following the initial
investment of $1,000,000 or more. With respect to purchases of $1,000,000 or
more of a fund, the Adviser may pay from its own funds a fee of 1.00%, or .25%
in the case of the Limited Maturity Bond Fund, of the amount invested to the
financial institution placing the purchase order.
D-3
<PAGE> 124
(c) Reduced Sales Charges -- Armada Class A Shares/Parkstone Investor A Shares
(1) Rights of Accumulation
a.Armada Class A Shares: In calculating the appropriate sales charge rate,
this right allows investors to add the value of the Class A Shares they
already own to the amount that they are currently purchasing. The Fund
will combine the value of the investor's current purchases with the
current value of any Class A Shares purchased previously for (i) the
investor's account, (ii) the investor's spouse's account, (iii) a joint
account with the investor's spouse, or (iv) the investor's minor
children's trust or custodial accounts. A fiduciary purchasing shares for
the same fiduciary account, trust or estate may also use this right of
accumulation. The Fund will only consider the value of Class A Shares
purchased previously that were sold subject to a sales charge. To be
entitled to a reduced sales charge based on shares already owned, the
investor must ask for the reduction at the time of purchase. The investor
must provide the Fund with the applicable account number(s) and, if
applicable, the account numbers of the spouse and/or children (and
provide the children's ages). The Fund may amend or terminate this right
of accumulation at any time.
b.Parkstone Investor A Shares: In calculating the appropriate sales charge
rate, this right allows investors to add the value of the Investor A
Shares they already own to the amount they are currently purchasing. The
Fund will combine the value of the investor's current purchases with the
current value of any Investor A Shares purchased previously for the
investor's account. The Fund will only consider the value of Class A
Shares purchased previously that were sold subject to a sales charge. To
be entitled to a reduced sales charge based on shares already owned, the
investor must ask for the reduction at the time of purchase. The investor
must provide the Fund with the applicable account number(s).
(2) Letter of Intent
Investors may purchase Armada Class A Shares or Parkstone Investor A Shares
at the sales charge rate applicable to the total amount of the purchases
they intend to make over a 13-month period. In other words, a Letter of
Intent allows investors to purchase Class A or Investor A Shares, as
applicable, of a Fund over a 13-month period and receive the same sales
charge as if all of the shares had been purchased at the same time. The
Fund will only consider the value of Class A or Investor A Shares sold
subject to a sales charge. As a result, shares of Class A or Investor A
Shares purchased with dividends or distributions will not be included in
the calculation. To be entitled to a reduced sales charge based on shares
an investor intends to purchase over the 13-month period, the investor must
send the appropriate Fund a Letter of Intent. In calculating the total
amount of purchases investors may include in their letter purchases made up
to 90 days before the date of the Letter. The 13-month period begins on the
date of the first purchase, including those purchases made in the 90-day
period before the date of the Letter. Please note that the purchase price
of these prior purchases will not be adjusted.
If the investor does not purchase the amount of shares indicated in the
Letter, the Letter authorizes the Fund to hold in escrow 4% of the total
amount the investor intends to purchase. If the investor does not complete
the total intended purchase at the end of the 13-month period or redeems
the entire amount within one year from the time of fulfillment, the Fund's
transfer agent will redeem the necessary portion of the escrowed shares to
make up the difference between the reduced rate sales charge (based on the
amount the investor intended to purchase) and the sales charge that would
normally apply (based on the actual amount purchased).
(3) Combined Purchase/Quantity Discount Privilege
When calculating the appropriate sales charge rate, the Fund will combine
same day purchases of Armada Class A Shares/Parkstone Investor A Shares
(that are subject to a sales charge) made by an investor, the investor's
spouse and minor children (under age 21). This combination also applies to
Armada Class A Shares/Parkstone Investor A Shares purchased with a Letter
of Intent. The investor must notify the Fund of the purchases that qualify
for this discount.
(d) Neither Armada nor Parkstone apply a sales charge on any purchases made
through reinvested dividends.
(e) No sales charge will be assessed on purchases of Armada Class A Shares or
Parkstone Investor A Shares made by:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
(1) trustees, retired trustees and officers of the (1) trustees, retired trustees and officers of the
Trust and their immediate family members (spouse, Trust and their immediate family members (spouse,
parents, siblings, children and grandchildren); parents, siblings, children and grandchildren);
</TABLE>
D-4
<PAGE> 125
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
(2) directors, retired directors, employees, retired (2) directors, retired directors, employees and
employees and participants in employee retired employees of the Adviser and its affiliates
benefit/retirement plans (annuitants) of National and their immediate family members;
City Corporation or any of its affiliates and their
immediate family members;
(3) a direct transfer or a rollover from a qualified (3) reinvestment of distributions from a deferred
plan distribution where affiliates of National City compensation plan, agency, trust, or custody account
Corporation are serving as a trustee or agent, or that was maintained by the Adviser or its affiliates
certain institutions having relationship with or invested in any Parkstone Fund;
affiliates of National City Corporation;
(4) investors purchasing Fund shares through a (4) investors purchasing Fund shares through payroll
payroll deduction plan; deduction plans;
(5) investors investing in the Armada Plus account (5) purchases by certain qualified employee benefit
through National City's Retirement Plan Services; plans;
(6) investors purchasing Fund shares through (6) investors purchasing Fund shares through
"one-stop" mutual fund networks; "one-stop" mutual fund networks;
(7) qualified broker-dealers, investment advisers or (7) qualified broker-dealers, investment advisers or
financial planners who charge a management fee for financial planners who charge a management fee for
their services and place trades for their own their services and place trades for their own
account or accounts of clients; account or accounts of clients;
(8) proceeds from redemptions from a Parkstone or (8) proceeds from redemptions from a Parkstone or
Armada fund within 180 days after redemption, if a Armada fund within 180 days after redemption, if a
sales load or commission was paid for those shares sales load or commission was paid for those shares
(notification must be given to the transfer agent (notification must be given to the transfer agent
regarding such repurchases); and regarding such repurchases);
(9) exchanges from Parkstone B Shares to the Trust's (9) certain orders placed by investment
Class A Shares or by exchanges from Parkstone representatives through fee-based investment
Investor A Shares to the Trust's Class A Shares (if products or accounts; and
sales charges for the new shares would be greater
than that sales charges paid on the previous shares, (10) shares purchased for trust or other advisory
the shareholder is responsible for paying the accounts established with the Adviser or its
difference). affiliates.
</TABLE>
2. Armada B Shares/Parkstone Investor B Shares:
Except as described below for Parkstone Investor B Shares purchased prior to
January 1, 1997, the contingent deferred sales charges applicable to Armada B
Shares and Parkstone Investor B Shares are substantially similar. Investors do
not pay a sales charge when purchasing Class B Shares. The offering price of
Class B Shares is simply the next calculated NAV. If, however, the investor
sells the shares within five years after purchase, the investor pays a
contingent deferred sales charge as described in the table below for either (1)
the NAV of the shares at the time of purchase, or (2) the NAV of the shares next
calculated after the Fund receives the sale request in good order, whichever is
less. The sales charge does not apply to shares purchased through reinvestment
of dividends or distributions. There is never any deferred sales charge on any
increase in an investment above the initial offering price. Additionally, this
sales charge does not apply to exchanges of Class B Shares of one Fund for Class
B Shares of another Fund. After eight years, Class B Shares are converted into
Class A Shares.
<TABLE>
<CAPTION>
YEAR OF CONTINGENT DEFERRED
REDEMPTION SALES CHARGE
- ---------- -------------------
<S> <C>
First..................................................... 5.00%
Second.................................................... 5.00%
Third..................................................... 4.00%
Fourth.................................................... 3.00%
Fifth..................................................... 2.00%
</TABLE>
No deferred sales charge is charged after the fifth year.
D-5
<PAGE> 126
Contingent deferred sales charges for Armada Class B Shares and Parkstone
Investor B Shares are waived for the following reasons:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
(1) Distributions from retirement plans if the (1) Distributions from retirement plans if the
distributions are made following the death or distributions are made following the death or
disability of the shareholders or plan participants; disability of the shareholders or plan participants;
(2) Redemptions representing a minimum required (2) Certain minimum required distributions from
distribution from an IRA or a custodial account to a retirement accounts or retirement plans where such
shareholder who has reached 70 1/2 years of age; redemptions are necessary to make distributions to
plan participants;
(3) Redemptions by participants in a qualified plan (3) Redemptions by participants in a qualified plan
for retirement loans, financial hardship, certain for retirement loans, financial hardship,
participant expenses and redemptions due to termination and certain participant expenses;
termination of employment with plan sponsor;
(4) Redemptions from accounts other than retirement (4) Redemptions from accounts other than retirement
accounts following the death or disability of the accounts following the death or disability of the
shareholder and/or joint shareholders; shareholder and/or joint shareholders;
(5) Exchanges of Class B Shares between funds of the (5) Exchanges of Investor B Shares between funds of
Trust; the Trust;
(6) Return of excess contributions to retirement (6) Returns of excess contributions to retirement
plans; plans;
(7) Distributions of less than 10% of the annual (7) Distributions of less than 10% of the annual
account value under a Systematic Withdrawal Plan; account value under a Systematic Withdrawal Plan;
(8) Redemptions by a settlor of a living trust; and (8) Shares issued in a plan of reorganization
sponsored by the Adviser, or shares redeemed
involuntarily in a similar situation; and
(9) Redemptions effected pursuant to a Fund's right (9) Purchases by certain qualified employee benefit
to liquidate a shareholder's account if the value of plans.
the shares held in the account is less than the
minimum account size.
</TABLE>
Investor B Shares of Parkstone which were purchased prior to January 1, 1997 and
redeemed prior to four years from the date of purchase will be subject to a
contingent deferred sales charge equal to a percentage of the lesser of net
asset value at the time of purchase of the Investor B Shares being redeemed or
net asset value of such shares at the time of redemption, as set forth in the
chart below:
<TABLE>
<CAPTION>
YEAR OF CONTINGENT DEFERRED
REDEMPTION SALES CHARGE
---------- -------------------
<S> <C>
First..................................................... 4.00%
Second.................................................... 4.00%
Third..................................................... 3.00%
Fourth.................................................... 2.00%
</TABLE>
3. Armada I Shares/Parkstone Institutional Shares:
All I and Institutional Shares are sold with no sales charge.
D-6
<PAGE> 127
B. PURCHASE POLICIES
MINIMUM INITIAL INVESTMENT:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
$500 for initial purchase of Class A Shares or Class $500 for initial purchase of Investor A Shares and
B Shares (but see discussion below regarding Investor B Shares (but see discussion below
investments in the Planned Investment Program regarding investments in the Auto Investment Plan).
(PIP)). No minimum initial investment for investment No minimum initial investment for Institutional
in I Shares. Shares.
</TABLE>
AUTOMATIC INVESTMENT PLAN:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Class A Shares and Class B Shares may be purchased Investor A Shares and Investor B Shares may be
on a semi-monthly, monthly or quarterly basis purchased on a monthly, bi-monthly or quarterly
through automatic deductions from a shareholder's basis through automatic deductions from a
bank account. The required minimum initial shareholder's bank account. The required minimum
investment when opening an account using the Planned initial investment when opening an account using the
Investment Program is $50; the minimum amount for Auto Invest Plan is $50; the minimum amount for
subsequent investments in a Fund is $50. subsequent investments in a Fund is $50.
Not available for Class I Shares. Not available for Institutional Shares.
</TABLE>
PURCHASE METHODS:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Investors may purchase Class A Shares and Class B Investors may purchase Investor A Shares and
Shares directly by mail, telephone, internet, wire Investor B Shares directly by mail, telephone, wire
or Automated Clearing House (ACH). Investors may or Automated Clearing House (ACH). Investors may
also purchase Class A Shares and Class B Shares also purchase Investor A Shares and Investor B
through accounts with brokers and other institutions Shares through accounts with brokers and other
that are authorized to place trades in Fund shares institutions that are authorized to place trades in
for their customers. Investors that invest through Fund shares for their customers. Investors that
an authorized institution will have to follow that invest through an authorized institution will have
institution's procedures. Such institutions may to follow that institution's procedures. Such
charge a fee for their services in addition to fees institutions may charge a fee for their services in
charged by the Trust. Additionally, such addition to fees charged by the Trust. Additionally,
institutions may charge additional fees and may such institutions may charge additional fees and may
require higher minimum investments or impose other require higher minimum investments or impose other
limitations on buying and selling shares. limitations on buying and selling shares.
Class I Shares may be purchased through accounts Institutional Shares may be purchased through
with brokers and other institutions that are procedures established by the distributor in
authorized to place trades in Fund shares for their connection with the requirement of customer accounts
customers. Investors that invest through an maintained by or on behalf of certain financial
authorized institution will have to follow that institutions acting as fiduciary or agent for their
institution's procedures. Such institutions may customers. These procedures may include instructions
charge a fee for their services in addition to fees under which a customer account is "swept"
charged by the Trust. automatically at least weekly and amounts in excess
of a minimum amount agreed upon by the financial
institution and the customer are invested by the
Distributor in Institutional Shares of the Money
Market Funds, depending upon the type of customer
account and/or the instructions of the customer.
</TABLE>
D-7
<PAGE> 128
PAYMENT METHODS:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Payment for Class A Shares and Class B Shares may be Payment for Investor A Shares and Investor B Shares
made by wire, ACH or check in U.S. dollars. The may be made by wire, ACH, check, bank draft or money
Trust cannot accept third-party checks, credit order in U.S. dollars. The Trust cannot accept
cards, credit card checks or cash. third-party checks, credit cards, credit card checks
or cash.
Class I Shares -- Institutional Shares --
-- A fee will be charged for any checks that do -- A fee will be charged for any checks that do
not clear. not clear.
-- Third-party checks are not accepted. -- Third-party checks are not accepted.
-- Purchases may be made by wire, ACH or check in -- Purchases may be made by wire, ACH or check in
U.S. U.S. Dollars.
Dollars.
</TABLE>
Depending upon the terms of a particular Customer Account, a financial
institution may charge a Customer Account fees for automatic investment and
other cash management services provided in connection with investment in Armada
I Shares or Parkstone Institutional Shares. Information concerning these
services and any charges may be obtained from the financial institution.
Both Armada and Parkstone reserve the right to reject purchase orders.
C. REDEMPTION POLICIES
REDEMPTION METHODS:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Class A Shares and Class B Shares -- Investors that Investor A Shares and Investor B
own shares directly may redeem shares on any Shares -- Redemptions may be requested by mail or by
business day by contacting a Fund directly by mail, telephone. Redemptions received in good order are
Internet or telephone. Redemptions received in good effected at a Fund's net asset value per share next
order are effected at a Fund's net asset value per determined after receipt of the order by the Fund.
share next determined after receipt of the order by Good order means that the request includes complete
the Fund. Good order means that the request includes information on the purchase, exchange or redemption
complete information on the purchase, exchange or and that the Fund has received the appropriate
redemption and that the Fund has received the assets. Normally, investors will receive the
appropriate assets. proceeds within a week after the request is
received.
Investors that own shares through an account with a
broker or other institution should contact that Redemptions from Individual Retirement Accounts must
broker or institution to sell shares. The minimum be requested in writing. Additionally, requests for
amount for telephone or Internet redemptions is the following redemptions must be made in writing
$100. A signature guarantee by a bank or other and must include a signature guarantee by an
financial institution is required for all redemption eligible guarantor institution, which for the
requests of $100,000 or more, or for requests to purpose of this policy, includes banks, brokers,
change the commercial bank or account designated to dealers, credit unions, securities exchanges and
receive redemption proceeds. associations, clearing agencies and savings
associations: (1) the account registration or the
Class I Shares -- Holders of Class I Shares may sell name(s) in the account has changed within the last
shares by following procedures established when they 15 days; (2) the check is not being mailed to the
opened their account or accounts. Holders of shares address on the account; (3) the check is not being
owned through an account with a broker or other made payable to the owner of the account; (4) the
institution should contact that broker or redemption proceeds are being transferred to another
institution to sell the shares. fund account with a different registration; or (5)
the redemption is in the amount of $10,000 or more.
Institutional Shares -- Holders of Institutional
Shares may sell shares by following procedures
established when they opened their account or
accounts. Holders of shares owned through an account
with a broker or other institution should contact
that broker or institution to sell the shares.
</TABLE>
D-8
<PAGE> 129
PAYMENT METHODS:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Class A Shares and Class B Shares -- Armada will Investor A and Investor B Shares -- Parkstone will
normally send sale proceeds within seven days after normally send sale proceeds within seven days after
receiving the redemption request. Proceeds can be receiving the redemption request. Proceeds can be
wired to the investor's bank account or sent to the wired to the investor's bank account or sent to the
investor by check. Armada does not charge a fee to investor by check. Both the Fund and the investor's
wire funds, however, the investor's institution may financial institution may charge a wire transfer
charge a fee. fee.
Class I Shares -- Armada will normally send sale Institutional Shares -- May be redeemed in
proceeds within seven days after receiving the accordance with instructions and limitations
redemption request. Proceeds can be wired to the pertaining to his or her Customer Account with a
investor's bank account. Armada does not charge a financial institution.
fee to wire funds, however, the investor's All Shares -- When purchases are made by check,
institution may charge a fee. redemption proceeds will not be released until the
All Shares - When purchases are made by check, investment being redeemed has been in the account 15
redemption proceeds may not be released until the days.
investment being redeemed has been in the account 15 Redemption proceeds are generally paid in cash.
days. However, under unusual conditions that make the
Redemption proceeds are generally paid in cash. payment of cash unwise (and for the protection of
However, under unusual conditions that make the the Fund's remaining shareholders) Parkstone might
payment of cash unwise (and for the protection of pay all or part of redemption proceeds in liquid
the Fund's remaining shareholders) Armada might pay securities with a market value equal to the
all or part of redemption proceeds in liquid redemption price (redemption in kind).
securities with a market value equal to the
redemption price (redemption in kind).
</TABLE>
CHECK WRITING PRIVILEGES:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Yes, for the shareholders of the Class A Shares of Yes, for the shareholders of the Investor A Shares
the Money Market Funds ($100 minimum). Investors may of the Money Market Funds ($100 minimum). Investors
not close a Money Market Fund account by writing a may not close a Money Market Fund account by writing
check. a check.
</TABLE>
AUTOMATIC WITHDRAWAL PLAN:
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C>
Yes for shareholders of Class A Shares and Class B Yes for Investor A Shares and Investor B Shares
Shares of any Fund held on the transfer agent's ($500 minimum balance/$100 minimum withdrawal).
system ($1,000 minimum balance/$100 minimum
withdrawal).
</TABLE>
Armada and Parkstone both reserve the right to redeem, at net asset value, any
account maintained by a Class A or Class B shares shareholder, or an Investor A
or Investor B Shares Shareholder, respectively, that has a value of less than
$500 due to redemptions where the shareholder does not increase the amount in
the account to at least $500 upon 60 days notice.
D. SHARE EXCHANGES
<TABLE>
<CAPTION>
ARMADA PARKSTONE
------ ---------
<S> <C> <C>
BY MAIL: Yes Yes
BY TELEPHONE: Yes Yes
BY INTERNET: Yes No
MINIMUM: $500 $500
LIMITATIONS: No more than one exchange every two No more than one exchange every two
months during a twelve month period months during a twelve month period
beginning upon the date of the first beginning upon the date of the first
exchange transaction. exchange transaction.
</TABLE>
D-9
<PAGE> 130
1. Armada Class A Shares and Class B Shares
(a) Class A Shares -- Investors may exchange Class A Shares of any Fund for
Class A Shares of any other Fund. If an investor exchanges shares that the
investor purchased without a sales charge or with a lower sales charge into a
Fund with a sales charge or with a higher sales charge, the exchange is subject
to an incremental sales charge (e.g., the difference between the lower and
higher applicable sales charges). If an investor exchanges shares into a Fund
with the same, lower or no sales charge there is no incremental sales charge for
the exchange.
(b) Class B Shares -- Investors may exchange Class B Shares of any Fund for
Class B Shares of any other Fund. No contingent deferred sales charge is imposed
on redemptions of shares acquired in an exchange, provided those shares are held
for at least five years from the initial purchase.
2. Armada Systematic Exchange Program
The Systematic Exchange Program allows investors to exchange their existing
shares of an Armada money market fund for shares of any other Armada Fund of the
same class automatically, at monthly or quarterly intervals. Exchanging in this
manner will reduce the average cost per share of a non-money market fund.
Because purchases of Class A Shares of non-money market funds may be subject to
an initial sales charge, it may be beneficial for investors to execute a Letter
of Intent indicating an intent to purchase Class A Shares in connection with
this program. If an investor would like to enter a systematic exchange program
concerning Class B Shares he/she must exchange them within six or twelve months
from the date of purchase. Investors may apply for participation in this program
by telephone or completing an account application.
3. Parkstone Investor A Shares:
Investors who own Investor A Shares may acquire in an exchange Investor A Shares
that are offered by another Fund of the Trust or fund of Armada with a different
investment objective. The exchange must occur on the same business day.
(a) Exchanging a Money Market Fund for another Money Market Fund -- Investors
that own Investor A Shares of any of the Trust's Money Market Funds or a money
market fund of Armada may exchange those shares at net asset value without any
sales charge for Investor A Shares offered by any of the Trust's other Money
Market Funds or an Armada Money Market Fund. The amount to be exchanged must
meet the applicable minimum investment requirements and the exchange must be
made in states where it is legally authorized.
(b) Exchanging a Non-Money Market Fund for another Non-Money Market
Fund -- Investors who own Investor A Shares of any of the Trust's non-Money
Market Funds or any fund of Armada which is not an Armada Money Market Fund may
exchange those Investor A Shares at net asset value without any sales charge for
Investor A Shares offered by any Fund of the Trust and any fund of Armada. If
you paid a sales charge on the Investor A Shares that you are to exchange that
is less than the sales charge applicable to the Investor A Shares you would like
to acquire, you must pay a sales charge on the exchange equal to the difference
between the two sales charges.
(c) Exchanging a Money Market Fund for a Non-Money Market Fund -- Investors who
own Investor A Shares of a Parkstone or Armada Money Market Fund may exchange
those shares for Investor A Shares of a Parkstone or Armada non-Money Market
Fund, but a sales load will be charged on the exchange.
4. Parkstone Investor B Shares:
Investors who own Investor B Shares may acquire in an exchange Investor B Shares
that are offered by another Fund of the Trust or A Shares of a Fund of Armada
Funds. The exchange must occur on the same business day.
Investors who own Investor B Shares of one Fund of the Trust may exchange those
Investor B Shares for Class A Shares of a Fund of Armada at net asset value.
These exchanges will be executed only if they meet the applicable minimum
investment requirements within states where the exchanges are authorized.
5. Parkstone Systematic Exchange Program:
The Systematic Exchange Program enables investors to purchase Investor A Shares
or Investor B Shares through automatic monthly or quarterly deductions from any
account invested in one of the Parkstone Money Market Funds. If investors invest
directly in Investor B Shares of the Prime Obligations Fund, as opposed to
obtaining shares through an exchange, they will be asked to participate in the
Systematic Exchange Program and to establish the time and amount of the
systematic exchanges so that all of the shares of the Prime Obligations Fund
purchased initially will be exchanged for shares of Investor B Shares of other
non-Money Market Funds within two years of purchase. Under the program, the
investor will
D-10
<PAGE> 131
enter into an agreement to purchase shares of one or more specified Funds over a
specified period of time. The program requires investors to:
-- Initially purchase shares of one of the Money Market Funds in an amount
equal to the total amount of the investment.
-- Specify an amount to be deducted on a monthly or quarterly basis from
the Money Market Fund and exchanged for shares of chosen specified
funds.
E. RESPONSIBILITY FOR TELEPHONE AND INTERNET INSTRUCTIONS
Purchasing, selling and exchanging Fund shares over the telephone or via the
Internet is extremely convenient, but not without risk. Although Armada,
Parkstone, their administrators, distributors and transfer agents have certain
safeguards and procedures to confirm the authenticity of instructions, they are
not responsible for any losses or costs incurred by following telephone or
on-line instructions reasonably believed to be genuine. Investors or financial
institutions transacting with Armada, Parkstone, their administrators,
distributors and transfer agents over the telephone or via the Internet will
generally bear the risk of any loss.
F. PRICING
The price per share (the offering price) will be the net asset value per share
("NAV") next determined after a Fund receives your purchase order plus, in the
case of Armada Class A Shares and Parkstone Investor A Shares, the applicable
front-end sales charge. The NAV for one Fund share is the value of that share's
portion of all of the assets in the Fund less liabilities and class expenses.
For processing purchase and redemption orders, the NAVs per share of the Armada
Money Market and Government Money Market Funds and the Parkstone Prime
Obligations and U.S. Government Obligations Funds are calculated on each
business day first at 3:00 p.m. Eastern time, then as of the close of trading of
the New York Stock Exchange (the "Exchange"). The net asset values per share of
the Armada Tax Exempt Money Market and Treasury Plus Money Market Funds and the
Parkstone Tax-Free and Treasury Funds are calculated on each business day first
at 1:00 p.m. Eastern time then as of the close of trading of the Exchange,
generally 4:00 p.m. Eastern time.
Each other Armada and Parkstone fund calculates its NAV once each Business Day
at the regularly-scheduled close of normal trading on the Exchange (normally
4:00 p.m. Eastern Time).
NAV is determined on any day that the Exchange is open for business ("Business
Day"). The NAV is calculated by adding the total value of a Fund's investments
and other assets, subtracting its liabilities and then dividing that figure by
the number of outstanding shares of the Fund. The NAV is calculated separately
for each class of shares.
An investor's order for the purchase of shares is priced at the next NAV
calculated after the order is received by the Distributor. An investor's order
for redemption of shares is priced at the next NAV calculated after the shares
are properly tendered for redemption.
The Fund's securities are generally valued at current market prices. If market
quotations are not available, prices will be based on fair value as determined
by a method which the Fund's Trustees believe accurately reflects fair value.
Foreign securities are valued based on quotations from the primary market in
which they are traded and are translated from the local currency into U.S.
dollars using current exchange rates.
Some of the Funds have portfolio securities that are primarily listed on foreign
exchanges that trade on weekends or other days when these Funds do not price
their shares. As a result, the NAV of a Fund's shares may change on days when
shareholders will not be able to purchase or redeem the Fund's shares.
The NAV will fluctuate as the value of the investment portfolio of a Fund
changes. However, the Money Market Funds value their securities at their
amortized cost. The amortized cost method involves valuing a portfolio security
initially at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of the difference between the principal amount due at
maturity and initial cost.
D-11
<PAGE> 132
II. DIVIDENDS AND DISTRIBUTIONS
Each Armada Fund and each Parkstone Fund distributes its net income to
shareholders as follows:
<TABLE>
<CAPTION>
CURRENT CURRENT
DIVIDEND DIVIDEND
PARKSTONE FUNDS DECLARED/PAID ARMADA FUNDS DECLARED/PAID
- --------------- ------------- ------------ -------------
<S> <C> <C> <C>
Prime Obligations Fund D/M Money Market Fund D/M
U.S. Government Obligations Fund D/M Government Money Market Fund D/M
Tax-Free Fund D/M Tax Exempt Money Market Fund D/M
Bond Fund D/M Bond Fund D/M
Limited Maturity Bond Fund D/M Limited Maturity Bond Fund D/M
Intermediate Government Obligations D/M Intermediate Bond Fund D/M
Fund
Equity Income Fund M/M Equity Income Fund Q/Q
Small Capitalization Fund M/M Small Cap Growth Fund A/A
International Discovery Fund M/M International Equity Fund A/A
Balanced Allocation Fund M/M Balanced Allocation Fund Q/Q
National Tax Exempt Bond Fund D/M National Tax Exempt Bond Fund D/M
U.S. Government Income Fund D/M U.S. Government Income Fund D/M
Large Capitalization Fund M/M Large Cap Ultra Fund Q/Q
Mid Capitalization Fund M/M Mid Cap Growth Fund Q/Q
Michigan Municipal Bond Fund D/M Michigan Municipal Bond Fund D/M
Treasury Fund D/M Treasury Plus Money Market Fund D/M
</TABLE>
- ---------------
<TABLE>
<S> <C> <C> <C>
* D/M = Daily/Monthly
M/M = Monthly/Monthly
Q/Q = Quarterly/Quarterly
A/A = Annually/Annually
</TABLE>
Each Armada Fund and each Parkstone Fund distributes its net capital gains to
shareholders at least annually.
D-12
<PAGE> 133
V99]APPENDIX E
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
ARMADA EQUITY INCOME FUND
The Fund's sector weights as of
December 31, 1999 reflect both the large
capitalization value style and our
strategy of investing in stocks with
"good value and good news". Our style
naturally lends itself to large
positions in energy, financials, and
utility stocks, relative to the general
market, given the historically high
yield, low multiple nature of these
sectors. At year-end, the Fund's
weightings in these sectors were 13.1%,
24.4% and 6.0%, respectively, versus
5.6%, 13.2% and 2.1% for the S&P 500
Index.
Our strategy currently leads us to
over-weighted positions, relative to the
style-specific benchmark, the Standard &
Poor's/ BARRA Value Index, in basic
materials, industrials, utilities, and
consumer cyclicals. It is in these
sectors that we find the preponderance
of stocks offering both good value and
good news -- meaning that we have
identified cheap stocks deserving higher
valuations and poised to outperform.
Relative to both the market and our
benchmark, the portfolio has a higher
dividend yield, lower 1999 and 2000
price/earnings ratios, and a smaller
average market capitalization. One of
the most significant differences between
our portfolio and that of the benchmark
is volatility (measured by beta) -- our
style typically leads to a much lower
risk profile.
GOING FORWARD
After an excruciatingly bad stretch of
relative performance for contrarian
value-oriented strategies and an
incredibly rewarding period of returns
for momentum growth-oriented strategies,
we are increasingly convinced that there
will be a reversion to the mean in terms
of the performance of value versus
growth. We are sticking to the
philosophy that has served our investors
well in the past and continue to invest
in stocks offering both "good value and
good news". We feel that this would be a
particularly inopportune time to change
our stripes and begin to move away from
our discipline. It is typically at the
point of greatest discomfort that
deserting a style will result in the
greatest punishment. The benefits of
investing across equity styles accrue to
those who are diversified when the
rotations occur -- the most recent
example being in the second quarter of
1999 when the cyclical stocks raged back
into favor after a long period of
dormancy.
For the year ended December 31, 1999,
the Armada Equity Income Fund produced a
total return of -0.25 percent (before
sales charges) for Class A investors,
- -0.92 percent (before sales charges) for
Class B investors, and -0.13 percent for
Class I investors. Over the same period,
the Fund's benchmark, Standard &
Poor's/BARRA Value Index, produced a
total return of 12.72 percent.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA EQUITY ARMADA EQUITY ARMADA EQUITY
INCOME FUND (1) INCOME FUND (4) INCOME FUND (5,6) S&P 500 S&P 500/BARRA
(CLASS I) (CLASS A) (SYNTHETIC B) COMPOSITE INDEX VALUE INDEX
--------------- --------------- ----------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
06/30/94 10000.00 10000.00
07/01/94 10000.00 10000.00 10000.00
08/22/94 10000.00 9450.00 10000.00 10000.00 10000.00
5/95 11309.00 10403.00 11008.00 12316.00 12041.00
5/96 13540.00 12417.00 13140.00 15816.00 15213.00
5/97 16872.00 15438.00 16337.00 20466.00 19087.00
5/98 21206.00 19361.00 20516.00 26744.00 24607.00
5/99 23458.00 21374.00 22391.00 32373.00 27828.00
12/99 21602.00 19635.00 20532.00 36802.00 28582.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
ANNUALIZED ANNUALIZED SINCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C> <C> <C>
CLASS I SHARES(1) -0.13% 12.46% 16.49% 15.02% 116.03%
CLASS A SHARES -0.25% 12.16% 16.20% 14.61% 107.78%
WITH LOAD(4) -5.73% 10.08% 14.89% 13.40% 96.30%
CLASS B SHARES -0.92% 11.72% 15.93% 14.36% 105.32%
WITH LOAD(5) -5.56% 10.64% 15.71% 14.36% 105.32%
CLASS B (ACTUAL) 4.67% 9.48%
WITH LOAD(5) 2.24% 4.49%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada Equity Income Fund's date of
inception was July 1, 1994 for Class I
Shares, August 22, 1994 for Class A
Shares and January 6, 1998 for Class B
Shares. The annualized 3-year and
5-year returns of the Class B Shares
includes information from commencement
of operations of the Class A Shares,
rather than the date Class B Shares
were introduced.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 5.50%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for Class B
Shares includes performance of the
Class A Shares from date of inception.
E-1
<PAGE> 134
ARMADA INTERNATIONAL EQUITY FUND
For the year, the performance of
Pacific Rim stocks outdistanced European
stock by a wide margin, 57.6% vs. 15.9%
respectively, even as the heavily
technology and communication oriented
Nordic regions posted a spectacular
87.0% advance. During the quarter, both
European and Far Eastern stocks moved in
relative sync, generating returns of
17.4% and 16.8% respectively. During the
month of December, however, European
stock outperformed the Pacific Rim
issues, generating returns of 10.3% and
6.6% respectively, as new German tax
reform, stronger industrial production,
and increased consumer confidence fueled
strong stock European performance.
Currently, the Fund maintains its most
significant overweighting in the Pacific
Rim at 39.0%, while being underweight to
Europe (58.8%). The largest country
allocations are to Japan, United
Kingdom, and France which are 26.5%,
16.1% and 11.7%, respectively. The Funds
most significant overweighted positions
relative to the Morgan Stanley EAFE
Index are to Hong Kong, Singapore, and
France. The most significant
underweighted positions relative to the
MSCI EAFE benchmark are to the United
Kingdom, Netherlands, and Germany.
GOING FORWARD
We continue to be constructive on the
outlook for international stocks
relative to the United States. Markets
outside the United States offer better
value with more accommodative monetary
policy, and excellent scope for earnings
growth amid accelerating economic growth
and corporate restructuring. Recently,
the movements of bonds, currencies, and
equity markets suggest that global
investors are looking increasingly
outside the US.
The differences between Europe and
Asia have greatly lessened over the past
year, as Europe's growth has been
accelerating since mid-1999 while Japan
faces continuing struggles to maintain
the pace of growth amid a high level of
structural change. Non-Japan Asia
continues to offer the best combination
of relative value, improving conditions,
and improving investor sentiment.
Emerging markets are also relatively
attractive despite a strong recovery in
1999.
Within global sectors, we see a few
structural shifts. Improving pricing in
a number industries suggest that basic
materials, energy, and insurance should
perform better in the year to come.
Moreover, the high degree of negative
news and lack of earnings growth in the
pharmaceutical industry have been well
telegraphed to markets, leading to
attractive entry points for select
stocks. Telecommunications and
technology remain highly attractive for
their growth prospects, but the degree
of our emphasis in these sectors has
been trimmed. Interest sensitive
sectors, outside of insurance, remain
under intense competitive pressure,
affecting margin expansion.
For the year ended December 31, 1999,
the Armada International Equity Fund
produced a total return of 49.71 percent
(before sales charges) for Class A
investors, 48.70 percent (before sales
charges) for Class B investors, and
50.13 percent for Class I investors.
Over the same period, the Fund's
benchmark produced a total return of
26.96 percent.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA INTERNATIONAL ARMADA INTERNATIONAL ARMADA INTERNATIONAL MSCI EAFE INDEX
EQUITY FUND(1) (CLASS EQUITY FUND(4) (CLASS EQUITY FUND(5,6) ---------------
I) A) (SYNTHETIC B)
--------------------- --------------------- --------------------
<S> <C> <C> <C> <C>
07/31/97 10000.00
08/01/97 10000.00 9450.00 10000.00 10000.00
5/98 10875.00 10232.00 10839.00 10361.00
5/99 10978.00 10318.00 10849.00 10813.00
12/99 16739.00 15703.00 16061.00 13719.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
SINCE SINCE
1 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C>
CLASS I SHARES(1) 50.13% 23.77% 67.41%
CLASS A SHARES 49.71% 23.39% 66.19%
WITH LOAD(4) 41.52% 20.55% 57.08%
CLASS B SHARES 48.70% 22.91% 64.61%
WITH LOAD(5) 43.70% 21.66% 60.61%
CLASS B (ACTUAL) 33.30% 76.86%
WITH LOAD(5) 31.39% 71.86%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada International Equity Fund's
date of inception was August 1, 1997
for both Class I Shares and Class A
Shares and January 6, 1998 for Class B
Shares.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999, of 5.50%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999, of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for the Class B
Shares includes performance of the
Class A Shares from date of inception.
E-2
<PAGE> 135
ARMADA SMALL CAP GROWTH FUND
Small capitalization stocks finally
managed to outperform large
capitalization stocks, albeit modestly
in 1999. Small capitalization technology
stocks had eye-popping, triple-digit
returns during 1999, though a
disproportionate amount of the gains
were booked from mid-October on.
Semiconductor related stocks were
important contributors to the Armada
Small Cap Growth Fund during the second
half of the year. Software stocks became
big contributors during the latter
stages of the year as well, especially
in the areas of business intelligence
and telecom service provider network
monitoring. The technology sector is the
largest single sector for the Fund and
it maintains an overweighted position in
technology issues relative to the
Russell 2000 Growth comparison
benchmark. As of December 31, 1999, the
Fund's allocation in the technology
sector is 48.3% versus the Index at
40.8%. We believe the fundamental
outlook for these companies is still
strong.
For the year ended December 31, 1999,
the Armada Small Cap Growth Fund
produced a total return of 35.63 percent
(before sales charges) for Class A
investors, 34.81 percent (before sales
charges) for Class B investors, and
36.06 percent for Class I investors.
Over the same period, the Fund's
benchmark produced a total return of
43.10% percent.
GOING FORWARD
After the unprecedented returns in
1999, one could reasonably become
concerned with how extended some of the
markets favorite stocks became during
the last ten weeks of 1999. The
continued upward pressure on interest
rates is also a concern. Our inclination
is to reduce our overweight to
technology and reduce exposure to those
stocks that have been driven up to
levels that cannot be justified by the
fundamentals. However, markets tend to
defy conventional wisdom at times. This
bull market more than any other has
defied conventional wisdom from the
beginning of its advance. In recognition
of this, we will refrain from stepping
out of our small cap growth discipline.
We believe the fundamentals for many
technology groups remain strong. Biotech
has gotten increased attention lately
and the Fund has benefited from the
increased exposure to the group.
Semiconductor capital equipment
companies are just entering the capacity
expansion phase of the industry's
upturn, which historically has led to
rapid revenue growth, margin expansion,
and earnings revisions -- all catalysts
for stock performance. Software stocks
which help businesses improve their
decision making processes (business
intelligence) should also see superior
growth. Derivative plays on the growth
of the internet should continue to be
fertile ground for small cap growth
investors, whether in the form of
broadband wireless infrastructure
equipment, web development software,
business to business enablers, or
information technology services
companies who are increasingly helping
customers develop e-commerce
capabilities. Our goal is to discover
the emerging companies that have the
best growth prospects within these
areas.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA SMALL CAP ARMADA SMALL CAP ARMADA SMALL CAP
GROWTH FUND(1) GROWTH FUND(4) GROWTH FUND(5, 6) RUSSELL 2000 RUSSELL 2000
(CLASS I) (CLASS A) (SYNTHETIC B) INDEX GROWTH INDEX
---------------- ---------------- ----------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
7/31/97 10000.00 10000.00
8/1/97 10000.00 9450.00 10000.00 10000.00 10000.00
5/98 11735.00 11073.00 11697.00 11108.00 10659.00
5/99 10285.00 9685.00 10146.00 10809.00 11078.00
12/99 15690.00 14733.00 14986.00 12535.00 14791.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
SINCE SINCE
1 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C>
CLASS I SHARES(1) 36.06% 20.49% 56.91%
CLASS A SHARES 35.63% 20.17% 55.90%
WITH LOAD(4) 28.17% 17.40% 47.36%
CLASS B SHARES 34.81% 19.53% 53.89%
WITH LOAD(5) 29.81% 18.23% 49.89%
CLASS B (ACTUAL) 20.25% 44.16%
WITH LOAD(5) 18.13% 39.16%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada Small Cap Growth Fund's date
of inception was August 1, 1997 for
both Class I Shares and Class A Shares
and January 6, 1998 for Class B Shares.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999, of 5.50%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999, of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for the Class B
Shares includes performance of the
Class A Shares from date of inception.
E-3
<PAGE> 136
ARMADA BALANCED ALLOCATION FUND
The Armada Balanced Allocation Fund's
traditional emphasis on equity holdings
was greatly rewarded during both the
fourth quarter 1999 and the entire year.
In addition, the Fund's growth style of
investing was particularly advantageous.
This was especially true of its
increased investment in small cap and
international growth stocks. In terms of
fixed income, interest rates rose less
in the fourth quarter than in the year's
first half. Accordingly, while absolute
fixed income returns were again negative
in the fourth quarter, they were only
marginally so. At year-end,
approximately 62% of the Fund was
invested in equity holdings.
The Fund's equity exposure was
maintained at its normal level
throughout the third quarter, as the
positive and negatives for the market
were carefully analyzed. On the positive
side were our forecasts of strong
corporate earnings growth, our beliefs
that inflation will remain relatively
well behaved, that the Federal Reserve
will not embark on an additional series
of interest rate increases, and that the
worst of the rise in long-term interest
rates had already been seen. Negatives
factors include the increasing pace of
economic growth throughout the entire
world, the corresponding fears of
cyclical pressures on inflation and
resulting pressures on world central
banks to raise interest rates.
Additional negative factors include our
long-held concerns about the extreme
narrowness of the overall equity market,
as well as the unprecedented levels of
valuation and expectations which are
embedded in the growth sectors in
particular.
Within the Fund, the recent excellent
returns in both the small capitalization
and international equity components has
narrowed their previous advantage in
terms of relative valuation.
Accordingly, their relative weightings
remained constant in the fourth quarter.
In regards to fixed income, the Fund
maintained its neutral position in terms
of both its overall weight, as well as
its interest rate sensitivity. Our
relatively sanguine view of economic
conditions, coupled with historically
wide credit spreads between sectors of
the fixed income markets, has led to a
substantial emphasis on the
non-government or spread sectors of the
fixed income markets.
GOING FORWARD
We expect the US economy to remain
"stronger for longer", assisted by the
first synchronous global upswing in over
a decade. In terms of inflation, while
cyclical pressures are readily apparent,
we believe the combination of
technology-induced advancements in
productivity coupled with an
intensely-competitive global
environment, will translate into higher
but still secularly-low levels of
inflation. As for monetary policy, we
expect global central banks, including
the Federal Reserve, to continue their
recent tightening moves in the early
part of 2000. However, if correct on our
inflation views, we think short rate
hikes will be of limited magnitude and
that long rates will likely decline in
the year's latter half. As for the
equity market, our continued confidence
in solid growth, healthy
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA ARMADA ARMADA S&P 500 LEHMAN
BALANCED BALANCED BALANCED COMPOSITE AGGREGATE INDEX
ALLOCATION ALLOCATION ALLOCATION INDEX ---------------
FUND(1) (CLASS FUND(4) (CLASS FUND(5,6) (CLASS ---------
I) A) B)
-------------- -------------- ----------------
<S> <C> <C> <C> <C> <C>
6/30/98 10000.00 10000.00
7/10/98 10000.00 10000.00 10000.00
7/31/98 10000.00 9525.00 10000.00 10000.00
11/11/98 10000.00 9525.00 10000.00 10000.00 10000.00
5/99 10457.00 10214.00 10607.00 11632.00 10346.00
12/99 12182.00 11883.00 11814.00 13223.00 10371.00
<CAPTION>
60% S&P
500/40%
LEHMAN
AGGREGATE
---------
<S> <C>
6/30/98 10000.00
7/10/98 10000.00
7/31/98 10000.00
11/11/98 10000.00
5/99 11165.00
12/99 12088.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
SINCE SINCE
1 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C>
CLASS I SHARES(1) 15.27% 14.31% 21.83%
CLASS A SHARES 14.97% 16.89% 24.79%
WITH LOAD(4) 9.55% 12.91% 18.81%
CLASS B SHARES 14.28% 20.09% 23.14%
WITH LOAD(5) 9.28% 15.79% 18.14%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada Balanced Allocation Fund's
date of inception was July 10, 1998 for
Class I Shares, July 31, 1998 for Class
A Shares and November 11, 1998 for
Class B Shares.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 4.75%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for Class B
Shares includes performance of the
Class A Shares from date of inception.
E-4
<PAGE> 137
ARMADA BALANCED ALLOCATION FUND
(CONTINUED)
GOING FORWARD (CONTINUED)
profits and a positive supply/demand
relationship means the overall backdrop
remains solid. However, central bank
tightening, coupled with the historic
highs in growth stock valuation and
exuberant expectations almost ensures
that volatility/risks will remain
elevated throughout the financial
markets.
Specific to the Armada Balanced
Allocation Fund, equity exposure will
likely remain near the normal level, as
the countervailing forces of positive
economic growth, strong corporate
earnings growth and a positive
supply/demand situation, counterbalance
the negatives of higher interest rates,
coupled with elevated stock valuations.
In terms of allocation within the equity
market, the overweighting of small
capitalization stocks will likely be
marginally reduced, as their recent
returns have been dramatic. The relative
reduction in small cap will be
transferred to an additional overweight
in the international arena, as expected
structural reforms combine with
attractive relative valuations in a
number of foreign markets. As for fixed
income, we will wait for interest rates
to attain new highs before either adding
to our exposure, or more likely,
extending portfolio duration. While bond
valuation appears increasingly
attractive, higher economic growth and a
concerned Federal Reserve are potent
obstacles to a sustained rally. While
waiting for such an opportunity, which
we believe will eventually surface, we
will continue to overweight non-
government securities, where yields are
more attractive than those available
with government securities.
For the year ended December 31, 1999,
the Armada Balanced Allocation Fund
produced a total return of 14.97 percent
(before sales charges) for Class A
investors, 14.28 percent (before sales
charges) for Class B investors, and
15.27 percent for Class I investors. By
comparison, the S&P 500 Composite Index
returned 21.04 percent, the Lehman
Aggregate Bond Index returned -0.83
percent. The Balanced Allocation Hybrid
Benchmark returned 12.00 percent for the
year. This benchmark reflects a 60/40
blending of the S&P 500 Composite Index
and the Lehman Aggregate Bond Index.
E-5
<PAGE> 138
ARMADA BOND FUND
In the face of a strong economy and
hawkish Federal Reserve, we continue to
maintain a neutral duration stance as
well as an overweight strategy in the
spread (non-US Treasury) sectors of the
Armada Bond Fund. In spite of our
optimistic view on the economy, the
potentially negative impact of likely
merger and acquisition activity in the
corporate sector has driven us to
slightly decrease our overweight in
corporate securities to 24% in favor of
less credit-sensitive, asset-backed and
mortgage-backed securities to 13% and
46% respectively. This compares to the
fund's benchmark, the Lehman Aggregate
Bond Index whose weightings are 22%
corporates, 0% asset-backed securities
and 34% mortgage-backed securities as of
December 31, 1999.
For the year ended December 31, 1999,
the Armada Bond Fund produced a total
return of -1.93 percent (before sales
charges) for Class A investors, -2.72
percent (before sales charges) for Class
B investors, and -1.89 percent for Class
I investors. During the same period, the
Index returned -0.83 percent. As of
December 31, 1999, the weighted average
life of the portfolio's holdings was
9.46 years, with an average credit
quality of AAA.
GOING FORWARD
We believe strong growth and
relatively low inflation will continue
to be dominant themes in the domestic
economy, but we are also mindful of the
relatively hawkish mood at the Federal
Reserve. Continued global expansion
should be good for growth, but strong
real growth, and cyclical inflation
fears will likely keep interest rates
relatively high in the short run. While
we recognize that higher interest rates
are not a positive for the fixed income
markets, we do not believe that
substantial changes in interest rates
early in 2000 will be the beginning of a
secular negative trend. Accordingly, we
are concerned with the fixed income
market's near- term prospects, but we
are confident that any substantial move
in interest rates will create a good
long term opportunity for fixed income
investors.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA BOND FUND(1) ARMADA BOND ARMADA BOND LEHMAN AGGREGATE
(CLASS I) FUND(4,6) (CLASS A) FUND(5,6) (CLASS B) BOND INDEX
------------------- ------------------- ------------------- ----------------
<S> <C> <C> <C> <C>
07/31/94 10000.00
08/10/94 10000.00 9525.00 10000.00 10000.00
05/95 10772.00 10260.00 10775.00 10955.00
05/96 11194.00 10662.00 11198.00 11435.00
05/97 12022.00 11432.00 12009.00 12387.00
05/98 13050.00 12380.00 13026.00 13739.00
05/99 13549.00 12846.00 13425.00 14336.00
12/99 13517.00 12799.00 13305.00 14370.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
ANNUALIZED ANNUALIZED SINCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C> <C> <C>
CLASS I SHARES(1) -1.89% 4.73% 6.35% 5.75% 35.19%
CLASS A SHARES -1.93% 4.55% 6.23% 5.64% 34.41%
WITH LOAD(4) -6.62% 2.87% 5.21% 4.68% 28.01%
CLASS B SHARES -2.72% 4.19% 6.02% 5.44% 33.05%
WITH LOAD(5) 7.35% 3.00% 5.70% 5.44% 33.05%
CLASS A (ACTUAL) 5.17% 18.11%
WITH LOAD(4) 3.62% 12.47%
CLASS B (ACTUAL) 1.84% 3.68%
WITH LOAD(5) -0.48% -0.96%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) Activity for the period presented
includes that of a predecessor fund
through September 6, 1996. The Armada
Bond Fund's date of inception for
performance was August 10, 1994 for
Class I Shares, September 11, 1996 for
Class A Shares and January 6, 1998 for
Class B Shares. The annualized 3-year
return of the Class A and Class B
Shares includes information from the
commencement of operations of the Class
I Shares, rather than the date Class A
Shares or Class B Shares were
introduced. The performance of the
Class A Shares or Class B Shares prior
to their introduction date does not
reflect shareholder servicing fees,
which, if reflected, would reduce the
performance quoted for such periods.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 4.75%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for the Class A
and Class B Shares includes performance
of the Class I Shares from date of
inception.
E-6
<PAGE> 139
ARMADA ENHANCED INCOME FUND
Our overall strategy for the Enhanced
Income Fund is to remain duration
neutral versus our benchmark, the
Merrill Lynch 1-3 Year Govt/Corp. Index
(the "Index"), while continuing our
overweight in select spread sectors
(non-government securities) versus the
Index. During the quarter ended December
31, 1999 we maintained our significant
overweight in corporate bonds and
asset-backed securities. As of December
31, 1999, 32 percent of the Fund's net
assets were invested in corporate bonds
and 36 percent in asset- backed
securities. Spreads tightened
significantly during the quarter, but we
continue to believe that excess spread
available in short corporate and
asset-backed securities is attractive on
a risk reward basis. Further, we
continue to believe that positive
fundamentals and technicals will drive
spreads tighter in the long run.
Therefore, we remain overweighted in
short-term asset backed and corporate
securities.
GOING FORWARD
We believe strong growth and
relatively low inflation will continue
to be dominant themes in the domestic
economy, but we are also mindful of the
relatively hawkish mood at the Federal
Reserve. Continued global expansion
should be good for growth, but strong
real growth, and cyclical inflation
fears will likely keep interest rates
relatively high in the short run. While
we recognize that higher interest rates
are not a positive for the fixed income
markets, we do not believe that
substantial changes in interest rates
early in 2000 will be the beginning of a
secular negative trend. Accordingly, we
are concerned with the fixed income
market's near term prospects, but we are
confident that any substantial move in
interest rates will create a good
long-term opportunity for fixed income
investors. Spread sectors (non-US
Treasury securities) remain attractive
on a fundamental basis, but their
tightening potential has been diminished
by tightening interest rate spreads in
recent months. We believe spreads will
tighten further now that Y2K fears have
been subdued and liquidity has returned
to more normal levels.
For the year ended December 31, 1999,
the Armada Enhanced Income Fund produced
a total return of 3.15 percent (before
sales charges) for Class A investors and
3.20 percent for Class I investors.
During the same period, the Merrill
Lynch 1-3 Year Govt/Corp Index returned
3.25 percent. As of December 31, 1999,
the average maturity of the portfolio's
holdings was 1.70 years.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
MERRILL 1-3 YEAR
ARMADA ENHANCED ARMADA ENHANCED ARMADA ENHANCED U.S.
INCOME(1) FUND INCOME FUND(4) INCOME FUND(5) CORPORATE/GOVERNMENT
(CLASS I) (CLASS A) (SYNTHETIC CLASS B) INDEX
--------------- --------------- ------------------- --------------------
<S> <C> <C> <C> <C>
6/30/94 10000.00
7/7/94 10000.00 10000.00 10000.00
9/9/94 10000.00 9725.00 10000.00 10000.00
5/95 10577.00 10205.00 10493.00 10722.00
5/96 11142.00 10727.00 11030.00 11294.00
5/97 11812.00 11361.00 11682.00 12048.00
5/98 12601.00 12120.00 12463.00 12895.00
5/99 13248.00 12719.00 13078.00 13592.00
12/99 13537.00 13019.00 12691.00 13893.00
<CAPTION>
MERRILL 1-3 YEAR
U.S. TREASURY BILL
INDEX
------------------
<S> <C>
6/30/94 10000.00
7/7/94 10000.00
9/9/94 10000.00
5/95 10714.00
5/96 11276.00
5/97 12020.00
5/98 12859.00
5/99 13541.00
12/99 13838.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
ANNUALIZED ANNUALIZED SINCE SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C> <C> <C>
CLASS I SHARES(1) 3.20% 5.39% 5.83% 5.67% 35.36%
CLASS A SHARES 3.15% 5.34% 5.76% 5.64% 33.85%
WITH LOAD(4) 0.27% 4.38% 5.18% 5.08% 30.12%
CLASS B SHARES 2.78% 5.22% 5.68% 5.57% 33.38%
WITH LOAD(5) -2.10% 4.02% 5.36% 5.57% 33.38%
CLASS B (ACTUAL) 1.59%
WITH LOAD(5) -3.40%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada Enhanced Income Fund's date
of inception was July 7, 1994 for Class
I Shares, and September 9, 1994 for
Class A Shares, and August 11, 1999 for
Class B Shares.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, Shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 2.75%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
E-7
<PAGE> 140
ARMADA INTERMEDIATE BOND FUND
In the face of a strong economy and
unfriendly Federal Reserve, we continue
to maintain a neutral duration stance as
well as an overweight strategy in the
spread (non-US Treasury) sectors. As of
December 31, 1999, 25 percent of the
Armada Intermediate Bond Fund's net
assets were invested in U.S. Treasury
and Agency securities, 17 percent in
mortgage-backed securities, 36 percent
in corporate bonds, and 22 percent in
asset-backed securities.
In spite of our optimistic view on the
economy, the potentially negative impact
of likely merger and acquisition
activity in the corporate sector has
driven us to slightly decrease our
overweight in corporate securities in
favor of less credit-sensitive,
asset-backed and mortgage-backed
securities. We continue to believe that
strong fundamentals justify tighter
spreads, but we also realize that recent
rallies in the spread markets may have
lessened the attractiveness of certain
sectors and securities. This considered,
we are carefully evaluating our current
spread product exposure.
GOING FORWARD
We believe strong growth and
relatively low inflation will continue
to be dominant themes in the domestic
economy, but we are also mindful of the
relatively hawkish mood at the Federal
Reserve. Continued global expansion
should be good for growth, but strong
real growth, and cyclical inflation
fears will likely keep interest rates
relatively high in the short run. While
we recognize that higher interest rates
are not a positive for the fixed income
markets, we do not believe that
substantial changes in interest rates
early in 2000 will be the beginning of a
secular negative trend. Accordingly, we
are concerned with the fixed income
market's near term prospects, but we are
confident that any substantial move in
interest rates will create a good long
term opportunity for fixed income
investors. Spread sectors (non-US
Treasury securities) remain attractive
on a fundamental basis, but their
tightening potential has been diminished
by tightening interest rate spreads in
recent months. We believe spreads will
tighten further now that Y2K fears have
been subdued and liquidity has returned
to more normal levels.
For the year ended December 31, 1999,
the Armada Intermediate Bond Fund
produced a total return of -0.37 percent
(before sales charges) for Class A
investors, -0.98 percent (before sales
charges) for Class B investors, and
- -0.04 percent for Class I investors.
During the same period, the Lehman
Intermediate Government/ Corporate Bond
Index returned 0.39 percent. As of
December 31, 1999, the weighted average
life of the portfolio's holdings was 5.0
years, with an average credit quality of
AA+.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA INTERMEDIATE ARMADA INTERMEDIATE LEHMAN INTERMEDIATE
ARMADA INTERMEDIATE BOND FUND(4,6) BOND FUND(5,6) GOVERNMENT
BOND FUND(1) (CLASS I) (SYNTHETIC A) (SYNTHETIC B) CORPORATE INDEX
---------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
11/30/89 10000.00
12/20/89 10000.00 9525.00 10000.00 10000.00
5/90 10098.00 9619.00 10097.00 10197.00
5/91 11332.00 10791.00 11329.00 11414.00
5/92 12761.00 12154.00 12760.00 12737.00
5/93 14205.00 13425.00 14166.00 14061.00
5/94 14205.00 13396.00 14134.00 14244.00
5/95 15561.00 14636.00 15442.00 15617.00
5/96 16151.00 15140.00 15974.00 16334.00
5/97 17222.00 16103.00 16989.00 17539.00
5/98 18615.00 17344.00 18243.00 19086.00
5/99 19356.00 17958.00 18760.00 19999.00
12/99 19549.00 18112.00 18842.00 20207.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
ANNUALIZED ANNUALIZED ANNUALIZED SINCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C> <C> <C> <C>
CLASS I SHARES(1) -0.04% 4.87% 6.60% 6.92% 6.91% 95.49%
CLASS A SHARES -0.37% 4.52% 6.25% 6.63% 6.61% 90.16%
WITH LOAD(4) -5.13% 2.85% 5.21% 6.11% 6.10% 81.11%
CLASS B SHARES -0.98% 4.03% 5.95% 6.53% 6.52% 88.45%
WITH LOAD(5) -5.70% 2.83% 5.63% 6.53% 6.52% 88.45%
CLASS A (ACTUAL) 6.24% 69.27%
WITH LOAD(4) 5.64% 61.16%
CLASS B (ACTUAL) 2.27% 4.56%
WITH LOAD(5) -0.09% -0.18%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada Intermediate Bond Fund's
date of inception was December 20, 1989
for Class I Shares, April 15, 1991 for
Class A Shares and January 6, 1998 for
Class B Shares. The 3-year and 5-year
returns of the Class B Shares include
information from the commencement of
operations of the Class I Shares,
rather than the date Class B Shares
were introduced. The performance of the
Class B Shares prior to their
introduction date does not reflect
shareholder servicing fees, which, if
reflected, would reduce the performance
quoted for such periods.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 4.75%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for the Class A
and Class B Shares includes performance
of the Class I Shares from date of
inception.
E-8
<PAGE> 141
ARMADA NATIONAL TAX EXEMPT BOND FUND(7)
The Armada National Tax Exempt Bond
Fund's gross total return for the fourth
quarter of 1999 was competitive with its
benchmark index, and in excess of the
average for its peer group, as measured
by the Lipper Intermediate Municipal
Fund universe. For the year ended
December 31, 1999, the Armada National
Tax Exempt Bond Fund produced a total
return of -0.91 percent (before sales
charges) for Class A investors, -1.81
percent (before sales charges) for Class
B investors, and -1.12 percent for Class
I investors. Over the same period, the
Fund's benchmark, the Lehman 10-Year
Municipal Bond Index produced a total
return of -1.24 percent.
The Fund's average maturity and
duration are slightly longer than its
benchmark, but the Fund contains
significantly more higher coupon bonds,
which is consistent with the Fund's
primary investment objective of income
generation and relative stability.
Credit quality remains extremely high
with more than 95% of the Fund's
holdings rated double A or higher.
GOING FORWARD
We expect the municipal market to
remain volatile over the next few
months, and anticipate that the Federal
Reserve will have to raise interest
rates at least once during the first
quarter of 2000. Consequently, we will
continue our strategy of purchasing
higher- coupon bonds and executing swaps
that could increase the Fund's income
distribution yield. New purchases will
continue to focus on higher-rated
securities until spreads between credit
grades widen.
GROWTH OF A $10,000 INVESTMENT (3)
<TABLE>
<CAPTION>
ARMADA NATIONAL TAX ARMADA NATIONAL TAX ARMADA NATIONAL TAX
EXEMPT EXEMPT FUND(4,6) EXEMPT FUND(5,6) LEHMAN 10 YEAR MUNI
FUND(1,6)(CLASS I) (CLASS A) (CLASS B) INDEX
------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
5/31/89 10000.00 9525.00 10000.00 10000.00
5/90 10506.00 10007.00 10506.00 10735.00
5/91 11183.00 10651.00 11183.00 11850.00
5/92 12140.00 11563.00 12140.00 12951.00
5/93 13830.00 13173.00 13830.00 14546.00
5/94 13960.00 13297.00 13960.00 15042.00
5/95 15099.00 14382.00 15099.00 16392.00
5/96 15029.00 14315.00 15029.00 17168.00
5/97 15838.00 15086.00 15838.00 18570.00
5/98 17059.00 16246.00 17056.00 20292.00
5/99 17753.00 16902.00 17712.00 21229.00
12/99 17517.00 16703.00 17376.00 20938.00
</TABLE>
AGGREGATE TOTAL RETURNS AS OF 12/31/99
<TABLE>
<CAPTION>
ANNUALIZED CUMULATIVE
ANNUALIZED ANNUALIZED ANNUALIZED SINCE SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION(2) INCEPTION(2)
<S> <C> <C> <C> <C> <C> <C>
CLASS I SHARES(1) -1.12% 3.74% 4.73% 5.28% 6.68% 171.18%
CLASS A SHARES -0.91% 3.78% 4.75% 5.29% 6.69% 171.52%
WITH LOAD(4) -5.58% 2.11% 3.73% 4.78% 6.35% 158.68%
CLASS B SHARES -1.81% 3.47% 4.56% 5.20% 6.63% 169.06%
WITH LOAD(5) -6.53% 2.26% 4.24% 5.20% 6.63% 169.06%
</TABLE>
PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE PERFORMANCE.
(1) Class I Shares are sold primarily to
banks and trust companies which are
affiliated with National City
Corporation and clients of National
Asset Management Corporation ("NAM").
Certain account level charges may
apply.
(2) The Armada National Tax Exempt Fund's
date of inception was April 9, 1998 for
Class I Shares, June 22, 1998 for Class
A Shares, and January 28, 1999 for
Class B Shares. The performance of the
Class I Shares, Class A Shares, and
Class B Shares includes performance of
a predecessor common trust fund which
commenced operations on July 31, 1984.
(3) The return and principal value of an
investment will fluctuate. When
redeemed, Shares may be worth more or
less than their original cost.
(4) Performance calculated based on the
maximum front-end sales charge in
effect at December 31, 1999 of 4.75%.
(5) Performance calculated based on the
maximum deferred sales charge in effect
at December 31, 1999 of 5.00%. This
charge declines from 5.00% in the first
year to 0.00% after five years, as
outlined in the prospectus.
(6) The performance chart for all Classes
includes performance of a predecessor
common trust fund.
(7) This fund is not managed for total
return. Its investment objective is to
provide as high a level of current
interest income exempt from federal
income tax, as is consistent with
conservation of capital.
E-9
<PAGE> 142
[THIS PAGE INTENTIONALLY LEFT BLANK]
<PAGE> 143
PARKSTONE(TM) FUNDS
================================================================================
<PAGE> 144
THE PARKSTONE GROUP OF FUNDS
ONE FREEDOM VALLEY DRIVE
OAKS, PENNSYLVANIA 19456
ARMADA FUNDS
ONE FREEDOM VALLEY DRIVE
OAKS, PENNSYLVANIA 19456
STATEMENT OF ADDITIONAL INFORMATION
(2000 SPECIAL MEETING OF SHAREHOLDERS OF THE
PARKSTONE GROUP OF FUNDS)
This Statement of Additional Information is not a prospectus but should
be read in conjunction with the Combined Prospectus/Proxy Statement dated March
13, 2000 for the Special Meeting of The Shareholders of Parkstone Group of
Funds, to be held on May 10, 2000. Copies of the Combined Prospectus/Proxy
Statement may be obtained at no charge by calling The Parkstone Group of Funds
at 1-800-451-8377.
Unless otherwise indicated, capitalized terms used herein and not
otherwise defined have the same meanings as are given to them in the Combined
Prospectus/Proxy Statement.
Further information about the Class A Shares, Class B Shares and Class
I Shares of the Existing Armada Funds is contained in, and incorporated by
reference to, Armada's Statement of Additional Information dated December 10,
1999.
Further information about Investor A Shares, Investor B Shares and
Institutional Shares of the Reorganizing Funds is contained in, and incorporated
by reference to, Parkstone's Statement of Additional Information dated September
17, 1999.
The date of this Statement of Additional Information is March 13, 2000.
1
<PAGE> 145
TABLE OF CONTENTS
Page
----
General Information........................................... 3
Pro Forma Financial Statements................................ PFS-1
2
<PAGE> 146
GENERAL INFORMATION
The Shareholders of The Parkstone Group of Funds ("Parkstone") are
being asked to approve or disapprove an Agreement and Plan of Reorganization
(the "Reorganization Agreement") dated as of November 17, 2000 between Parkstone
and Armada Funds ("Armada"), and the transactions contemplated thereby. The
Reorganization Agreement contemplates the transfer of substantially all of the
assets and liabilities of Parkstone's Prime Obligations Fund, U.S. Government
Obligations Fund, Tax-Free Fund, Bond Fund, U.S. Government Income Fund, Limited
Maturity Bond Fund, Intermediate Government Obligations Fund, Large
Capitalization Fund, Equity Income Fund, Small Capitalization Fund,
International Discovery Fund, Balanced Allocation Fund, National Tax Exempt Bond
Fund, Mid Capitalization Fund, Michigan Municipal Bond Fund and Treasury Fund to
corresponding Armada Funds in exchange for full and fractional shares
representing interests in such corresponding Armada Funds. The shares issued by
Armada will have an aggregate net asset value equal to the aggregate net asset
value of the shares of the respective Parkstone Funds that are outstanding
immediately before the Effective Time of the Reorganization.
Following the exchange, the Parkstone Funds will make a liquidating
distribution of corresponding Armada Funds shares to their shareholders. Each
shareholder owning shares of a particular Parkstone Fund at the Effective Time
of the Reorganization will receive shares of the corresponding Armada Fund of
equal value, plus the right to receive any unpaid dividends and distributions
that were declared before the Effective Time of the Reorganization on Parkstone
Fund shares. Upon completion of the Reorganization, Parkstone will be terminated
under state law and deregistered under the Investment Company Act of 1940.
The Special Meeting of Shareholders of Parkstone to consider the
Reorganization Agreement and the related transactions will be held at 3:00 p.m.
(Eastern time) on May 10, 2000 at SEI Investments Co., One Freedom Valley Drive,
Oaks, Pennsylvania 19456. For further information about the transaction, see the
Combined Prospectus/Proxy Statement.
3
<PAGE> 147
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Parkstone Money Market
Prime Armada Fund
Obligations Money Market Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 613,419 3,885,836 4,499,255
------- --------- ---------
ASSETS
Cash 52 (29,398) (29,346)
Accrued Income 1,790 6,495 8,285
Investment Securities Sold 0 0 0
Cap Shares Sold 24 11 350
Other Assets 14 0 14
TOTAL ASSETS: 615,299 3,862,944 4,478,243
------- --------- ---------
LIABILITIES
Income Payable 2,492 16,531 19,023
Capital Gain Payable 0 0 0
Investment Securities Purchased 4,926 24,628 29,554
Capital Shares Redeemed Payable 418 0 418
Accrued Expense Payable 374 3,342 3,716
Other Payables 0 0 0
TOTAL LIABILITIES: 8,210 44,501 52,711
------- --------- ---------
TOTAL NET ASSETS: 607,089 3,818,443 4,425,532
</TABLE>
4
<PAGE> 148
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Money Market
Parkstone Prime Armada Fund
Obligations Money Market ProForma ProForma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 16,325 97,549 0 113,874
------ ------ ------- -------
TOTAL INCOME: 16,325 97,549 0 113,874
------ ------ ------- -------
EXPENSES:
Administrator Fees 674 1,434 (122) A 1,986
Investment Advisory Fees 1,176 6,422 - 7,598
Waiver of Investment Advisory Fees (13) (1,835) - (1,848)
Transfer Agent Fees 61 22 - 83
Custodian Fees 37 367 - 404
Professional Fees (Audit + Legal) 24 115 (10) A 129
Trustee (Directors) Fees 5 28 - 33
Registration Fees 17 5 - 22
12b-1 Fees 25 736 114 A 875
Shareholder Servicing Fees 0 1,095 13 A 1,108
Printing Expenses 32 75 - 107
Miscellaneous Expenses 8 15 - 23
TOTAL EXPENSES: (2,046) (8,479) (5) (10,520)
------ ------ ------- -------
NET INVESTMENT INCOME: 14,279 89,070 (5) 103,354
------ ------ ------- -------
Net Realized Gains (Losses) on Investments 0 0 0 0
Net Unrealized Appreciation (Depreciation)
of Investment Securities 0 0 0 0
------ ------ ------- -------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 0 0 0 0
------ ------ ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 14,279 89,070 (5) 103,354
------ ------ ------- -------
A-To adjust fees to reflect Armada's fee structure
</TABLE>
5
<PAGE> 149
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Money Market
Parkstone Prime Armada Fund
Obligations Money Market ProForma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 14,279 89,070 103,349
Net Realized Gain (Loss) on Securities Sold - - -
Net Increase (Decrease) in Unrealized
Appreciation of Assets - - -
------- --------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 14,279 89,070 103,349
------- --------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (13,864) (54,173) (68,037)
Investor A/Class A Shares (403) (34,777) (35,180)
Investor B/Class B Shares (12) (9) (21)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (14,279) (88,959) (103,238)
------- --------- ---------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 337,382 2,925,982 3,263,364
Shares Issued in Lieu of Cash Distributions - 538 538
Shares Redeemed (376,217) (2,840,334) (3,216,551)
Net Institutional/Class I Share Transactions (38,835) 86,186 47,351
------- --------- ---------
Investor A/Class A Shares
Shares Issued 67,740 2,430,586 2,498,326
Shares Issued in Lieu of Cash Distributions 170 20,184 20,354
Shares Redeemed (66,052) (2,213,338) (2,279,390)
Net Investor A/Class A Share Transactions 1,858 237,432 239,290
------- --------- ---------
Investor B/Class B Shares
Shares Issued 475 1,605 2,080
Shares Issued in Lieu of Cash Distributions 11 6 17
Shares Redeemed (661) (1,407) (2,068)
Net Investor B/Class B Share Transactions (175) 204 29
------- --------- ---------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (37,152) 323,822 286,670
------- --------- ---------
BEGINNING OF PERIOD: 644,241 3,494,510 4,138,751
------- --------- ---------
END OF PERIOD: 607,089 3,818,443 4,425,532
------- --------- ---------
</TABLE>
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PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA MONEY MARKET/
PARKSTONE PRIME OBLIGATIONS
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
0.00 5,000,000.00 5,000,000.00 ALLSTATE FRN 0.00 5,000,000.00 5,000,000.00
15,000,000.00 10,000,000.00 25,000,000.00 ABBEY NAT'L BANK (5.13%) 14,995,706.18 9,997,137.45 24,992,843.63
10,000,000.00 0.00 10,000,000.00 ABBEY NATIONAL 9,910,000.00 0.00 9,910,000.00
15,000,000.00 0.00 15,000,000.00 ABBEY NATIONAL 14,784,916.66 0.00 14,784,916.66
15,000,000.00 0.00 15,000,000.00 ABBEY NAT'L CP (4.97%) 15,000,000.00 0.00 15,000,000.00
15,000,000.00 5,000,000.00 20,000,000.00 ABBEY NAT'L CP (5.355%) 14,995,537.50 4,998,513.89 19,994,051.39
15,000,000.00 5,000,000.00 20,000,000.00 ABBEY NATIONAL CP 14,979,975.00 4,993,325.00 19,973,300.00
18,750,000.00 0.00 18,750,000.00 AKZO NOBEL 18,472,083.34 0.00 18,472,083.34
0.00 5,000,000.00 5,000,000.00 AKZO NOBEL 0.00 4,921,861.11 4,921,861.11
25,000,000.00 5,000,000.00 30,000,000.00 AKZO NOBEL 24,598,500.00 4,919,700.00 29,518,200.00
10,000,000.00 0.00 10,000,000.00 AKZO NOBEL 9,834,055.55 0.00 9,834,055.55
15,000,000.00 5,000,000.00 20,000,000.00 AKZO NOBEL 14,729,437.50 4,909,812.50 19,639,250.00
15,000,000.00 0.00 15,000,000.00 ALLSTATE CORP CP (5.75%) 14,849,062.50 0.00 14,849,062.50
15,000,000.00 0.00 15,000,000.00 ALLSTATE CORPORATION CP 14,753,658.34 0.00 14,753,658.34
15,000,000.00 0.00 15,000,000.00 ALCOA CP 15,000,000.00 0.00 15,000,000.00
15,000,000.00 0.00 15,000,000.00 ALCOA CP 14,984,541.67 0.00 14,984,541.67
15,000,000.00 5,000,000.00 20,000,000.00 AMERICAN EXPRESS CO 14,878,520.83 4,963,386.11 19,841,906.94
15,000,000.00 5,000,000.00 20,000,000.00 AMERICAN EXPRESS CO 14,860,466.66 4,953,488.89 19,813,955.55
10,000,000.00 0.00 10,000,000.00 AMERICAN EXPRESS 9,908,008.34 0.00 9,908,008.34
30,000,000.00 5,000,000.00 35,000,000.00 AMERICAN EXPRESS CO 29,700,337.50 4,950,691.66 34,651,029.16
15,000,000.00 15,000,000.00 AMERICAN EXPRESS 14,845,775.00 0.00 14,845,775.00
15,000,000.00 5,000,000.00 20,000,000.00 AMERICAN EXPRESS CO 14,845,125.00 4,948,375.00 19,793,500.00
15,000,000.00 0.00 15,000,000.00 AMERICAN GENERAL CORP 14,817,812.50 0.00 14,817,812.50
15,000,000.00 0.00 15,000,000.00 AMERICAN GENERAL CORP 14,780,083.34 0.00 14,780,083.34
25,000,000.00 5,000,000.00 30,000,000.00 AMERICAN GENERAL CORP 24,576,354.17 4,915,270.83 29,491,625.00
15,000,000.00 5,000,000.00 20,000,000.00 AM HOME PROD CP (5.42%) 14,875,791.67 4,958,597.22 19,834,388.89
15,000,000.00 0.00 15,000,000.00 AMERICAN HOME PRODUCTS 14,843,025.00 0.00 14,843,025.00
15,000,000.00 5,000,000.00 20,000,000.00 AMERICAN HOME CP (5.72%) 14,816,483.33 4,938,827.78 19,755,311.11
5,836,000.00 0.00 5,836,000.00 AMERICAN HOME PROD 5,757,959.71 0.00 5,757,959.71
15,000,000.00 5,000,000.00 20,000,000.00 AMERICAN HOME PPRODUCTS 14,772,000.00 4,924,000.00 19,696,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
15,000,000.00 0.00 15,000,000.00 AMERICAN HOME PRODUCTS 14,719,687.50 0.00 14,719,687.50
25,000,000.00 0.00 25,000,000.00 AT & T CORP 24,996,333.33 0.00 24,996,333.33
15,000,000.00 5,000,000.00 20,000,000.00 AT&T FLOATER (Q13) 14,996,311.48 4,998,770.49 19,995,081.97
15,000,000.00 0.00 15,000,000.00 TRAVELERS FDG (Q/29) 15,000,000.00 0.00 15,000,000.00
15,000,000.00 0.00 15,000,000.00 ARCHER DANIELS 14,698,650.00 0.00 14,698,650.00
15,000,000.00 0.00 15,000,000.00 ASSOC FIRST CP (5.70%) 14,814,750.00 0.00 14,814,750.00
15,000,000.00 0.00 15,000,000.00 ASSOC FIRST CP (5.71%) 14,783,495.83 0.00 14,783,495.83
15,000,000.00 0.00 15,000,000.00 ASSOC FIRST CP (5.32%) 14,988,916.67 0.00 14,988,916.67
5,000,000.00 0.00 5,000,000.00 ASSOC FIRST CAP (5.31%) 4,994,837.50 0.00 4,994,837.50
15,000,000.00 5,000,000.00 20,000,000.00 ATLANTIC RICHFLD (5.30%) 14,997,791.67 4,999,263.89 19,997,055.56
15,000,000.00 5,000,000.00 20,000,000.00 BP AMOCO (4.86%) 14,890,650.00 4,963,550.00 19,854,200.00
38,325,000.00 0.00 38,325,000.00 BAKER HUGHES 38,325,000.00 0.00 38,325,000.00
15,000,000.00 10,000,000.00 25,000,000.00 BANK OF MONTREAL (5.16%) 14,997,562.19 9,998,374.80 24,995,936.99
9,000,000.00 4,915,000.00 13,915,000.00 BASS FINANCIAL 8,895,807.50 4,858,099.32 13,753,906.82
0.00 5,000,000.00 5,000,000.00 BASS FINANCIAL 0.00 4,932,331.94 4,932,331.94
14,190,000.00 5,000,000.00 19,190,000.00 BASS FINANCIAL 13,995,313.20 4,931,400.00 18,926,713.20
15,000,000.00 5,000,000.00 20,000,000.00 BASS FINANCE LTD 14,988,937.50 4,996,312.50 19,985,250.00
15,610,000.00 0.00 15,610,000.00 BASS FINANCIAL 15,610,000.00 0.00 15,610,000.00
20,000,000.00 5,000,000.00 25,000,000.00 BAYERISCHE LANDISBANK 20,000,000.00 5,000,000.00 25,000,000.00
20,000,000.00 5,000,000.00 25,000,000.00 BAYERISCHE LANDISBANK 20,000,000.00 5,000,000.00 25,000,000.00
21,800,000.00 0.00 21,800,000.00 BELL ATLANTIC FIN SVCS 21,647,932.89 0.00 21,647,932.89
15,000,000.00 0.00 15,000,000.00 BELL SOUTH CAPL FDG 14,867,083.34 0.00 14,867,083.34
10,000,000.00 0.00 10,000,000.00 ALLSTATE FUNDING (Q1) 10,000,000.00 0.00 10,000,000.00
10,000,000.00 0.00 10,000,000.00 ALLSTATE FUNDING (M1) 10,000,000.00 0.00 10,000,000.00
7,650,000.00 0.00 7,650,000.00 BROWN FOREMAN 7,595,302.50 0.00 7,595,302.50
10,000,000.00 0.00 10,000,000.00 BROWN FOREMAN CORP 9,906,583.33 0.00 9,906,583.33
13,715,000.00 0.00 13,715,000.00 BROWN FOREMAN 13,715,000.00 0.00 13,715,000.00
10,000,000.00 0.00 10,000,000.00 CORP ASSET FUNDING CP 9,921,055.56 0.00 9,921,055.56
0.00 5,000,000.00 5,000,000.00 CAMPBELL SOUP 0.00 5,000,000.00 5,000,000.00
15,000,000.00 0.00 15,000,000.00 CAMPBELL SOUP 15,000,000.00 0.00 15,000,000.00
15,000,000.00 5,000,000.00 20,000,000.00 CARGILL INC CP (5.42%) 14,889,341.67 4,963,113.89 19,852,455.56
15,000,000.00 0.00 15,000,000.00 CARGILL INC CP (5.70%) 14,897,875.00 0.00 14,897,875.00
12,475,000.00 0.00 12,475,000.00 CARGILL INC CP (5.72%) 12,387,785.89 0.00 12,387,785.89
15,000,000.00 0.00 15,000,000.00 CARGILL INC CP (5.40%) 14,887,500.00 0.00 14,887,500.00
15,000,000.00 0.00 15,000,000.00 CARGILL INC CP (5.42%) 14,884,825.00 0.00 14,884,825.00
15,000,000.00 5,000,000.00 20,000,000.00 CATERPILLAR FINANCIAL 14,785,658.33 4,928,552.78 19,714,211.11
17,200,000.00 5,000,000.00 22,200,000.00 CATERPILLAR FINANCIAL 16,906,262.23 4,914,611.11 21,820,873.34
10,000,000.00 0.00 10,000,000.00 ALLSTATE FND (Q30/Q1) 10,000,000.00 0.00 10,000,000.00
15,000,000.00 5,000,000.00 20,000,000.00 CIESCO 14,864,666.67 4,954,888.89 19,819,555.56
15,000,000.00 0.00 15,000,000.00 CIESCO LP 14,876,666.67 0.00 14,876,666.67
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
15,000,000.00 0.00 15,000,000.00 CIESCO L.P. 14,827,916.66 0.00 14,827,916.66
15,000,000.00 0.00 15,000,000.00 CIESCO 14,984,541.67 0.00 14,984,541.67
15,000,000.00 5,000,000.00 20,000,000.00 CIESCO L.P. 14,973,250.00 4,991,083.33 19,964,333.33
25,000,000.00 5,000,000.00 30,000,000.00 CIESCO L.P. 25,000,000.00 5,000,000.00 30,000,000.00
205,000,000.00 0.00 205,000,000.00 REPO (5.75 %) BOSTON 205,000,000.00 0.00 205,000,000.00
64,202,000.00 0.00 64,202,000.00 REPO (5.69 %) LEHM 64,202,000.00 0.00 64,202,000.00
25,000,000.00 0.00 25,000,000.00 REPO (5.72 %) PRUD 25,000,000.00 0.00 25,000,000.00
8,500,000.00 0.00 8,500,000.00 COLGATE PALMOLIVE 8,431,527.77 0.00 8,431,527.77
15,000,000.00 5,000,000.00 20,000,000.00 COMERICA BANK FRN (M31/M) 14,994,435.18 4,998,145.06 19,992,580.24
15,000,000.00 0.00 15,000,000.00 TRAVELERS FDG (M17) 15,000,000.00 0.00 15,000,000.00
0.00 5,000,000.00 5,000,000.00 CORPORATE ASSET FUNDING 0.00 4,957,986.11 4,957,986.11
28,664,000.00 5,000,000.00 33,664,000.00 CORPORATE ASSET FUNDING 28,394,281.48 4,953,100.00 33,347,381.48
10,000,000.00 0.00 10,000,000.00 CORP ASSET CP (5.91 %) 9,904,783.33 0.00 9,904,783.33
15,000,000.00 5,000,000.00 20,000,000.00 CORPORATE ASSET FUNDING 14,822,500.00 4,940,833.34 19,763,333.34
10,000,000.00 0.00 10,000,000.00 CORPORATE ASET FDG 9,998,513.89 0.00 9,998,513.89
15,000,000.00 5,000,000.00 20,000,000.00 CORPORATE ASSET FDG 14,973,500.00 4,991,166.67 19,964,666.67
10,000,000.00 0.00 10,000,000.00 CORPORATE ASSET FDG 9,977,083.33 0.00 9,977,083.33
15,000,000.00 5,000,000.00 20,000,000.00 DAIMLER CHRYSLER MONTHLY 14,989,235.80 4,996,411.93 19,985,647.73
15,000,000.00 0.00 15,000,000.00 DAIMLER CHRYSLER 14,742,312.50 0.00 14,742,312.50
15,000,000.00 5,000,000.00 20,000,000.00 DAIMLER CHRYSLER (5.31%) 14,984,512.50 4,994,837.50 19,979,350.00
25,000,000.00 5,000,000.00 30,000,000.00 DAIMLER CHRYSLER (5.31%) 24,948,316.67 4,989,675.00 29,937,991.67
15,000,000.00 0.00 15,000,000.00 DAIMLER CHRYSLER (5.55%) 14,854,312.50 0.00 14,854,312.50
15,000,000.00 0.00 15,000,000.00 DAIMLER CHRYSLER (5.59%) 14,836,958.33 0.00 14,836,958.33
15,000,000.00 0.00 15,000,000.00 DAIMLER CHRYSLER (5.70%) 14,783,875.00 0.00 14,783,875.00
15,000,000.00 0.00 15,000,000.00 JOHN DEERE 14,898,150.00 0.00 14,898,150.00
20,000,000.00 0.00 20,000,000.00 JOHN DEERE CAP 19,754,027.77 0.00 19,754,027.77
15,000,000.00 0.00 15,000,000.00 DELAWARE FUNDING 14,893,395.83 0.00 14,893,395.83
10,000,000.00 5,000,000.00 15,000,000.00 DELAWARE FDG 9,922,000.00 4,961,000.00 14,883,000.00
10,000,000.00 0.00 10,000,000.00 DELAWARE FUNDING 9,915,277.78 0.00 9,915,277.78
0.00 5,000,000.00 5,000,000.00 DELAWARE FUNDING 0.00 4,958,704.17 4,958,704.17
35,000,000.00 0.00 35,000,000.00 DELAWARE FUNDING CP 34,690,250.00 0.00 34,690,250.00
15,000,000.00 0.00 15,000,000.00 DELAWARE FDG CP (5.80%) 14,798,725.00 0.00 14,798,725.00
0.00 5,000,000.00 5,000,000.00 DELAWARE FUNDING CP 0.00 4,932,908.33 4,932,908.33
15,000,000.00 0.00 15,000,000.00 DEN DANSKE 14,861,812.50 0.00 14,861,812.50
20,000,000.00 5,000,000.00 25,000,000.00 DEN DANSKE CP (5.34%) 19,961,415.28 4,990,358.33 24,951,773.61
15,000,000.00 0.00 15,000,000.00 DEN DANSKE CP 14,953,362.50 0.00 14,953,362.50
20,000,000.00 0.00 20,000,000.00 DEN DANSKE 19,860,466.67 0.00 19,860,466.67
15,000,000.00 0.00 15,000,000.00 DEN DANSKE 14,858,833.33 0.00 14,858,833.33
0.00 5,000,000.00 5,000,000.00 DEN DANSKE 0.00 4,870,958.34 4,870,958.34
15,000,000.00 0.00 15,000,000.00 DEN DANSKE 14,783,804.16 0.00 14,783,804.16
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
15,000,000.00 0.00 15,000,000.00 DEUTCHE BANK 14,916,983.33 0.00 14,916,983.33
15,000,000.00 5,000,000.00 20,000,000.00 DEUTCHE BANK FIN (5.74%) 14,882,808.33 4,960,936.11 19,843,744.44
15,000,000.00 5,000,000.00 20,000,000.00 DEUTCHE BANK CP (5.34%) 14,968,850.00 4,989,616.67 19,958,466.67
25,000,000.00 0.00 25,000,000.00 DEUTCHE BANK NY 24,996,753.20 0.00 24,996,753.20
15,000,000.00 0.00 15,000,000.00 DEUTSCHE BANK (5.05%) 14,998,288.04 0.00 14,998,288.04
10,000,000.00 5,000,000.00 15,000,000.00 DIAGEO CP (5.55%) 9,935,250.00 4,967,625.00 14,902,875.00
45,000,000.00 5,000,000.00 50,000,000.00 DIAGEO PLC 44,643,000.00 4,960,333.33 49,603,333.33
15,000,000.00 5,000,000.00 20,000,000.00 DIAGEO CP (5.50%) 14,839,583.33 4,946,527.78 19,786,111.11
15,000,000.00 5,000,000.00 20,000,000.00 DIAGEO PLC 14,697,916.67 4,899,305.56 19,597,222.23
15,000,000.00 0.00 15,000,000.00 DIAGEO PLC 14,695,729.16 0.00 14,695,729.16
25,000,000.00 5,000,000.00 30,000,000.00 DRESDNER BANK 5.81% 24,838,611.11 4,967,722.22 29,806,333.33
15,000,000.00 0.00 15,000,000.00 DRESDNER CP (5.40%) 14,874,000.00 0.00 14,874,000.00
30,000,000.00 5,000,000.00 35,000,000.00 DRESDNER CP (5.35%) 29,937,583.33 4,989,597.22 34,927,180.55
15,000,000.00 5,000,000.00 20,000,000.00 EASTMAN KODAK 14,879,745.83 4,959,915.28 19,839,661.11
15,000,000.00 0.00 15,000,000.00 EATON CORP CP (4.95%) 14,874,187.50 0.00 14,874,187.50
10,000,000.00 5,000,000.00 15,000,000.00 EATON CORP CP (5.47%) 9,925,547.22 4,962,365.28 14,887,912.50
25,000,000.00 10,000,000.00 35,000,000.00 FHLB FLOATER (Q24/TUE) 25,000,000.00 10,000,000.00 35,000,000.00
50,000,000.00 5,000,000.00 55,000,000.00 FNMA DISC NOTE (5.265) 49,963,402.78 4,996,340.28 54,959,743.06
15,000,000.00 5,000,000.00 20,000,000.00 FORD MOTOR CREDIT CO 14,917,691.67 4,972,563.89 19,890,255.56
15,000,000.00 0.00 15,000,000.00 FMCC 14,911,350.00 0.00 14,911,350.00
15,000,000.00 0.00 15,000,000.00 FORD MOTOR CREDIT CORP CP 14,904,833.33 0.00 14,904,833.33
15,000,000.00 0.00 15,000,000.00 FMCC CP (5.56%) 14,858,683.33 0.00 14,858,683.33
15,000,000.00 0.00 15,000,000.00 FMCC 14,676,920.83 0.00 14,676,920.83
15,000,000.00 5,000,000.00 20,000,000.00 FMCC 14,659,916.66 4,886,638.89 19,546,555.55
10,000,000.00 0.00 10,000,000.00 FORD MOTOR CR CP (5.28%) 9,979,466.67 0.00 9,979,466.67
15,000,000.00 0.00 15,000,000.00 FORTUNE BRANDS CP (5.40%) 14,822,250.00 0.00 14,822,250.00
5,000,000.00 5,000,000.00 10,000,000.00 GE CAPITAL CP (5.73%) 4,933,150.00 4,933,150.00 9,866,300.00
15,000,000.00 0.00 15,000,000.00 GE CAPITAL INT'L (5.73%) 14,732,600.00 0.00 14,732,600.00
10,000,000.00 0.00 10,000,000.00 GE CAPITAL CP (5.33%) 9,977,791.67 0.00 9,977,791.67
20,000,000.00 0.00 20,000,000.00 GANNETT 19,838,027.78 0.00 19,838,027.78
15,000,000.00 0.00 15,000,000.00 GENERAL ELECTRIC CAP CORP 14,875,204.17 0.00 14,875,204.17
10,000,000.00 5,000,000.00 15,000,000.00 GE CAPITAL (4.95%) 9,912,000.00 4,956,000.00 14,868,000.00
15,000,000.00 5,000,000.00 20,000,000.00 GE CAPITAL CP (5.08%) 14,837,016.67 4,938,400.00 19,775,416.67
0.00 5,000,000.00 5,000,000.00 GENERAL ELECTRIC 0.00 4,897,975.00 4,897,975.00
15,000,000.00 0.00 15,000,000.00 GE CAP CP (5.72%) 14,816,483.33 0.00 14,816,483.33
15,000,000.00 0.00 15,000,000.00 GE CAPITAL CP (5.72%) 14,783,116.67 0.00 14,783,116.67
15,000,000.00 10,000,000.00 25,000,000.00 GMAC CP (5.42%) 14,873,533.33 9,911,255.55 24,784,788.88
15,000,000.00 0.00 15,000,000.00 GMAC 14,827,916.66 0.00 14,827,916.66
10,000,000.00 0.00 10,000,000.00 GMAC CP 9,867,000.00 0.00 9,867,000.00
15,000,000.00 0.00 15,000,000.00 GMAC 14,798,479.17 0.00 14,798,479.17
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
15,000,000.00 5,000,000.00 20,000,000.00 GMAC CP (5.38%) 14,748,933.33 4,916,311.11 19,665,244.44
15,000,000.00 0.00 15,000,000.00 GMAC 14,860,233.33 0.00 14,860,233.33
15,000,000.00 0.00 15,000,000.00 GILLETTE CO 14,997,800.00 0.00 14,997,800.00
10,000,000.00 0.00 10,000,000.00 GLAXO WELLCOME 9,887,611.11 0.00 9,887,611.11
25,000,000.00 0.00 25,000,000.00 GLAXO WELLCOME 24,654,666.67 0.00 24,654,666.67
0.00 5,000,000.00 5,000,000.00 GLAXO WELLCOME 0.00 4,935,866.66 4,935,866.66
25,000,000.00 5,000,000.00 30,000,000.00 GLAXO WELLCOME 24,593,750.00 4,918,750.00 29,512,500.00
9,000,000.00 0.00 9,000,000.00 GOLDEN PEANUT 8,834,800.00 0.00 8,834,800.00
11,416,384.57 0.00 11,416,384.57 FSQ PREMIUM MM #483 11,416,384.57 0.00 11,416,384.57
25,000,000.00 5,000,000.00 30,000,000.00 GREAT LAKES CHEM CORP 24,798,215.28 4,959,643.06 29,757,858.34
15,000,000.00 0.00 15,000,000.00 GREAT LAKES CHEMICAL 14,861,633.34 0.00 14,861,633.34
10,000,000.00 0.00 10,000,000.00 GREAT LAKES CHEMICAL 9,900,875.00 0.00 9,900,875.00
15,000,000.00 0.00 15,000,000.00 CIESCO L.P. (M17/M) 14,996,803.28 0.00 14,996,803.28
11,600,000.00 0.00 11,600,000.00 GUARDIAN INDUSTRIES 11,516,866.67 0.00 11,516,866.67
0.00 5,000,000.00 5,000,000.00 GUARDIAN INDUSTRIES 0.00 4,963,150.00 4,963,150.00
5,000,000.00 5,000,000.00 10,000,000.00 GUARDIAN INDUSTRIES 4,952,472.22 4,952,472.22 9,904,944.44
12,012,000.00 0.00 12,012,000.00 JOHN HANCOCK CAP CORP 11,923,912.00 0.00 11,923,912.00
10,000,000.00 0.00 10,000,000.00 HASBRO INC CP (5.38%) 9,940,222.22 0.00 9,940,222.22
15,000,000.00 0.00 15,000,000.00 HASBRO INC CP (5.03%) 14,897,304.17 0.00 14,897,304.17
15,000,000.00 0.00 15,000,000.00 GMAC CP (5.69%) 14,834,041.67 0.00 14,834,041.67
14,380,000.00 0.00 14,380,000.00 HASBRO INC 14,363,031.60 0.00 14,363,031.60
10,859,000.00 0.00 10,859,000.00 HASBRO INC 10,836,618.39 0.00 10,836,618.39
0.00 5,000,000.00 5,000,000.00 HENKEL 0.00 4,964,166.67 4,964,166.67
12,000,000.00 0.00 12,000,000.00 HENKEL 11,888,280.00 0.00 11,888,280.00
12,000,000.00 0.00 12,000,000.00 HENKEL 11,874,000.00 0.00 11,874,000.00
17,000,000.00 0.00 17,000,000.00 HENKEL 16,803,140.00 0.00 16,803,140.00
15,000,000.00 0.00 15,000,000.00 HENKEL CP (5.32%) 14,966,812.50 0.00 14,966,812.50
10,000,000.00 0.00 10,000,000.00 HOUSEHOLD FINANCE CORP 9,895,700.00 0.00 9,895,700.00
30,000,000.00 5,000,000.00 35,000,000.00 HOUSEHOLD FIN CP (5.70%) 29,799,625.00 4,966,750.00 34,766,375.00
15,000,000.00 0.00 15,000,000.00 HOUSEHOLD FINANCE 14,881,200.00 0.00 14,881,200.00
15,000,000.00 0.00 15,000,000.00 HOUSEHOLD FIN CP (5.71%) 14,864,387.50 0.00 14,864,387.50
0.00 5,000,000.00 5,000,000.00 HOUSEHOLD 0.00 4,947,850.00 4,947,850.00
15,000,000.00 0.00 15,000,000.00 HOUSEHOLD FIN CP (5.65%) 14,849,333.33 0.00 14,849,333.33
15,000,000.00 5,000,000.00 20,000,000.00 HOUSEHOLD FIN CP (5.30%) 14,997,791.67 4,999,263.89 19,997,055.56
10,000,000.00 0.00 10,000,000.00 KEY BANK NA (Q20) 9,993,448.13 0.00 9,993,448.13
15,000,000.00 0.00 15,000,000.00 LUCENT TECH CP (4.98%) 14,883,800.00 0.00 14,883,800.00
10,000,000.00 0.00 10,000,000.00 LUCENT TECH INC (4.91%) 9,914,075.00 0.00 9,914,075.00
10,000,000.00 0.00 10,000,000.00 LUCENT TECH (5.10%) 9,882,416.67 0.00 9,882,416.67
10,000,000.00 0.00 10,000,000.00 MONSANTO CP (5.40%) 9,926,500.00 0.00 9,926,500.00
10,000,000.00 5,000,000.00 15,000,000.00 MONSANTO 9,820,488.89 4,910,244.44 14,730,733.33
</TABLE>
11
<PAGE> 155
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
5,000,000.00 4,500,000.00 9,500,000.00 MONSANTO CP (5.40%) 4,964,000.00 4,467,600.00 9,431,600.00
13,980,000.00 0.00 13,980,000.00 MONSANTO 13,724,562.10 0.00 13,724,562.10
14,000,000.00 0.00 14,000,000.00 MONSANTO COMPANY 13,735,221.11 0.00 13,735,221.11
7,821,000.00 0.00 7,821,000.00 MOTOROLA CREDIT 7,694,995.00 0.00 7,694,995.00
11,000,000.00 0.00 11,000,000.00 NATIONAL RURAL UTIL 10,851,133.34 0.00 10,851,133.34
15,000,000.00 0.00 15,000,000.00 NY LIFE CP (5.30%) 14,997,791.67 0.00 14,997,791.67
15,000,000.00 5,000,000.00 20,000,000.00 NY LIFE CP (5.30%) 14,984,541.67 4,994,847.22 19,979,388.89
10,000,000.00 0.00 10,000,000.00 PACCAR 9,905,750.00 0.00 9,905,750.00
10,000,000.00 5,000,000.00 15,000,000.00 PEMEX (LOC) 9,992,611.11 4,996,305.56 14,988,916.67
10,000,000.00 0.00 10,000,000.00 POTOMAC ELECTRIC POWER CO 9,885,958.33 0.00 9,885,958.33
0.00 4,490,000.00 4,490,000.00 PREFERRED RECEIVABLES 0.00 4,461,713.00 4,461,713.00
15,000,000.00 5,735,000.00 20,735,000.00 PREFERRED RECEIVABLES 14,878,600.00 5,688,584.73 20,567,184.73
10,000,000.00 0.00 10,000,000.00 PREFERRED RECEIVABLES FDG 9,894,825.00 0.00 9,894,825.00
15,000,000.00 0.00 15,000,000.00 PREF RECEIVABLES (5.85%) 14,834,250.00 0.00 14,834,250.00
0.00 5,000,000.00 5,000,000.00 PREF RECEIVABLES 0.00 4,964,166.67 4,964,166.67
15,000,000.00 0.00 15,000,000.00 PREF RECEIVABLES 14,892,500.00 0.00 14,892,500.00
15,000,000.00 0.00 15,000,000.00 PREFERRED RECEIVABLES 14,997,766.67 0.00 14,997,766.67
15,000,000.00 0.00 15,000,000.00 PREFERRED RECEIVABLES 14,957,725.00 0.00 14,957,725.00
25,000,000.00 0.00 25,000,000.00 PRUDENTIAL FUNDING CP 24,836,611.11 0.00 24,836,611.11
10,000,000.00 0.00 10,000,000.00 PRUDENTIAL FUNDING 9,932,805.56 0.00 9,932,805.56
15,000,000.00 5,000,000.00 20,000,000.00 PRUDENTIAL FDG CP (5.75%) 14,899,375.00 4,966,458.33 19,865,833.33
10,000,000.00 5,000,000.00 15,000,000.00 PRUDENTIAL FDG CP (5.75%) 9,921,736.11 4,960,868.05 14,882,604.16
40,000,000.00 5,000,000.00 45,000,000.00 PRUDENTIAL FUNDING 39,629,933.34 4,954,422.22 44,584,355.56
0.00 5,000,000.00 5,000,000.00 PRUDENTIAL FUNDING 0.00 4,899,025.00 4,899,025.00
0.00 10,000,000.00 10,000,000.00 RABOBANK, NY 0.00 9,998,018.18 9,998,018.18
25,000,000.00 0.00 25,000,000.00 RABOBANK, NY CD (5.13%) 24,995,045.45 0.00 24,995,045.45
15,000,000.00 5,000,000.00 20,000,000.00 ROYAL BANK, CANADA 14,938,166.67 4,979,388.89 19,917,555.56
15,000,000.00 0.00 15,000,000.00 SBC 14,881,583.33 0.00 14,881,583.33
15,000,000.00 5,000,000.00 20,000,000.00 ST. PAUL COS CP (5.63%) 14,835,791.67 4,945,263.89 19,781,055.56
15,000,000.00 0.00 15,000,000.00 ST. PAUL COS. 14,828,416.67 0.00 14,828,416.67
30,000,000.00 5,000,000.00 35,000,000.00 ST. PAUL COS CP (5.70%) 29,593,300.00 4,933,500.00 34,526,800.00
15,000,000.00 5,000,000.00 20,000,000.00 SONOCO PRODUCTS (5.75%) 14,750,833.33 4,916,944.45 19,667,777.78
10,000,000.00 0.00 10,000,000.00 SOUTHERN CAL ED 9,979,311.11 0.00 9,979,311.11
10,000,000.00 0.00 10,000,000.00 HENKEL CP (5.31%) 9,980,825.00 0.00 9,980,825.00
25,000,000.00 0.00 25,000,000.00 SOUTHERN CO. 24,713,194.44 0.00 24,713,194.44
22,000,000.00 5,000,000.00 27,000,000.00 THE SOUTHERN CO 21,746,175.00 4,942,312.50 26,688,487.50
9,100,000.00 0.00 9,100,000.00 SOUTHERN CO CP (5.65%) 8,992,885.42 0.00 8,992,885.42
15,000,000.00 5,000,000.00 20,000,000.00 SOUTHERN CO 14,800,500.00 4,933,500.00 19,734,000.00
9,650,000.00 5,000,000.00 14,650,000.00 STANLEY WORKS CP (5.65%) 9,543,984.03 4,945,069.44 14,489,053.47
15,000,000.00 5,000,000.00 20,000,000.00 STANLEY WORKS CP 14,783,116.67 4,927,705.55 19,710,822.22
</TABLE>
12
<PAGE> 156
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
10,000,000.00 0.00 10,000,000.00 STANLEY WORKS 9,827,333.33 0.00 9,827,333.33
15,000,000.00 0.00 15,000,000.00 STANLEY WORKS 14,731,666.67 0.00 14,731,666.67
6,000,000.00 0.00 6,000,000.00 STANLEY WORKS 5,999,116.67 0.00 5,999,116.67
25,000,000.00 10,000,000.00 35,000,000.00 SLMA (Q10/TUES) 24,994,815.57 9,997,926.23 34,992,741.80
30,000,000.00 0.00 30,000,000.00 SLMA (Q27/TUES) 29,975,581.97 0.00 29,975,581.97
50,000,000.00 10,000,000.00 60,000,000.00 SLMA (3MO T-BILL+70BPS) 49,976,571.04 9,995,314.21 59,971,885.25
24,000,000.00 0.00 24,000,000.00 SLMA CALLABLE NOTE 5.05% 24,000,000.00 0.00 24,000,000.00
25,000,000.00 5,000,000.00 30,000,000.00 SVENSKA 24,628,416.67 4,925,683.33 29,554,100.00
15,000,000.00 5,000,000.00 20,000,000.00 SVENSKA CP (5.33%) 14,955,583.33 4,985,194.44 19,940,777.77
25,000,000.00 5,000,000.00 30,000,000.00 SVENSKA 5.34% 24,896,166.67 4,979,233.33 29,875,400.00
20,000,000.00 0.00 20,000,000.00 SYSCO 19,861,166.67 0.00 19,861,166.67
15,000,000.00 10,000,000.00 25,000,000.00 TRANSAMERICA FINANCE 14,860,000.00 9,906,900.00 24,766,900.00
10,000,000.00 0.00 10,000,000.00 TRANSAMERICA CP (5.58%) 9,902,350.00 0.00 9,902,350.00
15,000,000.00 0.00 15,000,000.00 TRANSAMERICA FINL 14,784,175.00 0.00 14,784,175.00
5,000,000.00 0.00 5,000,000.00 TRANSAMERICA FINANCIAL 4,920,244.44 0.00 4,920,244.44
5,000,000.00 0.00 5,000,000.00 TRANSAMERICA FIN (5.70%) 4,922,416.67 0.00 4,922,416.67
15,000,000.00 5,000,000.00 20,000,000.00 TRANSAMERICA FIN 14,675,812.50 4,891,937.50 19,567,750.00
10,000,000.00 0.00 10,000,000.00 TRANSAMERICA FINL 9,745,777.78 0.00 9,745,777.78
10,000,000.00 0.00 10,000,000.00 TRANSAMERICA MTN (Q5/Q6) 10,007,337.25 0.00 10,007,337.25
10,000,000.00 5,000,000.00 15,000,000.00 UBS AG STAMFORD (5.60%) 9,998,197.69 4,999,098.85 14,997,296.54
35,000,000.00 0.00 35,000,000.00 WAL-MART 35,000,000.00 0.00 35,000,000.00
0.00 33,072,000.00 33,072,000.00 JP MORGAN 0.00 33,072,000.00 33,072,000.00
0.00 5,000,000.00 5,000,000.00 ALLSTATE 0.00 5,000,000.00 5,000,000.00
0.00 10,000,000.00 10,000,000.00 TRAVELERS 0.00 10,000,000.00 10,000,000.00
0.00 10,000,000.00 10,000,000.00 TRAVELERS 0.00 10,000,000.00 10,000,000.00
0.00 10,000,000.00 10,000,000.00 ALLSTATE 0.00 10,000,000.00 10,000,000.00
3,913,735,384.57 617,712,000.00 4,531,447,384.57 3,885,835,574.31 613,419,142.84 4,499,254,717.15
</TABLE>
13
<PAGE> 157
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
Armada
Government
Parkstone U.S. Armada Money Market
Government Government Fund
Obligations Money Market Pro Forma
Fund Fund Combined
TOTAL INVESTMENTS: 100,515 1,669,311 1,769,826
------- --------- ---------
ASSETS
Cash 1 1 2
Accrued Income 152 1,976 2,128
Investment Securities Sold 0 0 0
Cap Shares Sold 0 0 0
Other Assets 3 68 71
TOTAL ASSETS: 100,671 1,671,356 1,772,027
------- --------- ---------
LIABILITIES
Income Payable 404 7,075 7,479
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 0 0 0
Accrued Expense Payable 90 1,695 1,785
Other Payables 0 0 0
TOTAL LIABILITIES: 494 8,770 9,264
------- --------- ---------
TOTAL NET ASSETS: 100,177 1,662,586 1,762,763
14
<PAGE> 158
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Government
Parkstone U.S. Armada Money Market
Government Government Fund
Obligations Money Market ProForma ProForma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 2,981 42,974 0 45,955
----- ------ ------- ------
TOTAL INCOME: 2,981 42,974 0 45,955
----- ------ ------- ------
EXPENSES:
Administrator Fees 129 578 (30) A 677
Investment Advisory Fees 220 2,890 - 3,110
Waiver of Investment Advisory Fees (2) (826) - (828)
Transfer Agent Fees 34 24 - 58
Custodian Fees 11 91 - 102
Professional Fees (Audit + Legal) 7 60 (3) A 64
Trustee (Directors) Fees 1 10 - 13
Registration Fees 8 5 - 13
12b-1 Fees 3 330 19 A 352
Shareholder Servicing Fees 0 435 1 A 436
Printing Expenses 8 53 - 61
Miscellaneous Expenses 2 26 - 26
TOTAL EXPENSES: (421) (3,676) (13) (4,084)
----- ------ ------- ------
NET INVESTMENT INCOME: 2,560 39,298 (13) 41,871
----- ------ ------- ------
Net Realized Gains (Losses) on Investments (1) 0 0 (1)
Net Unrealized Appreciation (Depreciation)
of Investment Securities 0 0 0 0
----- ------ ------- ------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (1) 0 0 (1)
----- ------ ------- ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 2,559 39,298 (13) 41,870
----- ------ ------- ------
A-To adjust fees to reflect Armada's fee structure
</TABLE>
15
<PAGE> 159
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Government
Parkstone U.S. Armada Money Market
Government Government Fund
Obligations Money Market Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 2,560 39,298 41,858
Net Realized Gain (Loss) on Securities Sold (1) - (1)
Net Increase (Decrease) in Unrealized
Appreciation of Assets - - -
-------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 2,559 39,298 41,857
-------- ---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (2,506) (25,780) (28,286)
Investor A/Class A Shares (54) (13,533) (13,587)
Investor B/Class B Shares - - -
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (2,560) (39,313) (41,873)
-------- ---------- ----------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 60,898 2,365,346 2,426,244
Shares Issued in Lieu of Cash Distributions - 631 631
Shares Redeemed (83,171) (2,381,087) (2,464,258)
Net Institutional/Class I Share Transactions (22,273) (15,110) (37,383)
-------- ---------- ----------
Investor A/Class A Shares
Shares Issued 16,938 556,936 573,874
Shares Issued in Lieu of Cash Distributions 12 2,108 2,120
Shares Redeemed (18,006) (541,407) (559,413)
Net Investor A/Class A Share Transactions (1,056) 17,637 16,581
-------- ---------- ----------
Investor B/Class B Shares
Shares Issued - - -
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed - - -
Net Investor B/Class B Share Transactions - - -
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (23,329) 2,527 (20,802)
-------- ---------- ----------
BEGINNING OF PERIOD: 123,507 1,660,074 1,783,581
-------- ---------- ----------
END OF PERIOD: 100,177 1,662,586 1,762,763
-------- ---------- ----------
</TABLE>
16
<PAGE> 160
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA GOVERNMENT MONEY MARKET/
PARKSTONE US GOVERNMENT OBLIGATIONS
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
230,000,000.00 0.00 230,000,000.00 REPO (5.75 %) BOSTON 230,000,000.00 0.00 230,000,000.00
38,887,000.00 0.00 38,887,000.00 REPO (5.69 %) LEHM 38,887,000.00 0.00 38,887,000.00
75,000,000.00 0.00 75,000,000.00 REPO (5.72 %) PRUD 75,000,000.00 0.00 75,000,000.00
4,203,000.00 0.00 4,203,000.00 FFCB DISC NOTE (5.25%) 4,195,031.81 0.00 4,195,031.81
10,000,000.00 0.00 10,000,000.00 FFCB DISC NOTE (5.09%) 9,980,205.56 0.00 9,980,205.56
10,550,000.00 1,000,000.00 11,550,000.00 FFCB DISC NOTE (5.33%) 10,506,264.39 995,854.44 11,502,118.83
25,000,000.00 1,000,000.00 26,000,000.00 FFCB DISC NOTE (5.61%) 24,792,100.00 991,675.00 25,783,775.00
10,000,000.00 0.00 10,000,000.00 FFCB (5.45%) 9,916,736.11 0.00 9,916,736.11
8,502,000.00 0.00 8,502,000.00 FFCB DISC NOTE (5.54%) 8,428,731.65 0.00 8,428,731.65
10,000,000.00 1,000,000.00 11,000,000.00 FFCB DISC NOTE (5.55%) 9,882,833.34 988,283.34 10,871,116.68
10,000,000.00 0.00 10,000,000.00 FFCB DISC NOTE (5.52%) 9,868,133.33 0.00 9,868,133.33
7,140,000.00 0.00 7,140,000.00 FFCB DISC NOTE (5.45%) 7,009,209.08 0.00 7,009,209.08
15,000,000.00 0.00 15,000,000.00 FFCB DEBENTURE 4.75% 15,000,000.00 0.00 15,000,000.00
10,000,000.00 0.00 10,000,000.00 FHLB DISC NOTE (5.531) 9,901,671.11 0.00 9,901,671.11
10,000,000.00 0.00 10,000,000.00 FHLB DISC. NOTE 5.22% 10,000,000.00 0.00 10,000,000.00
10,000,000.00 0.00 10,000,000.00 FHLMC DISC NOTE (5.26%) 9,997,077.78 0.00 9,997,077.78
10,000,000.00 1,000,000.00 11,000,000.00 FHLB (01/12/00) 9,935,483.34 993,548.34 10,929,031.68
20,000,000.00 1,000,000.00 21,000,000.00 FHLB DISC NOTE (5.565%) 19,864,027.78 993,204.45 20,857,232.23
20,000,000.00 0.00 20,000,000.00 FHLB DISC. NOTE 5.39% 19,860,350.00 0.00 19,860,350.00
10,000,000.00 0.00 10,000,000.00 FHLB DISC NOTE (5.21%) 9,926,191.67 0.00 9,926,191.67
30,000,000.00 2,000,000.00 32,000,000.00 FHLB DISC NOTE 29,745,822.23 1,982,857.79 31,728,680.02
10,000,000.00 0.00 10,000,000.00 FHLB DISC NOTE (5.53%) 9,910,905.55 0.00 9,910,905.55
20,000,000.00 1,000,000.00 21,000,000.00 FHLB DISCOUNT NOTE 19,818,863.88 991,239.72 20,810,103.60
10,000,000.00 1,000,000.00 11,000,000.00 FHLB AGY DISCOUNT NOTE 9,904,933.33 990,493.33 10,895,426.66
20,000,000.00 1,000,000.00 21,000,000.00 FHLB DISC. NOTE 5.39% 19,809,775.00 990,410.00 20,800,185.00
0.00 1,000,000.00 1,000,000.00 FHLB DISC. NOTE 0.00 990,167.11 990,167.11
10,000,000.00 1,000,000.00 11,000,000.00 FHLB DISC NOTE (5.53%) 9,889,400.00 988,940.00 10,878,340.00
10,000,000.00 1,000,000.00 11,000,000.00 FHLB DISC. NOTE 5.51% 9,882,147.23 988,214.73 10,870,361.96
10,000,000.00 1,000,000.00 11,000,000.00 FHLB (5.52%) 9,872,733.33 987,273.33 10,860,006.66
</TABLE>
17
<PAGE> 161
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
20,000,000.00 2,000,000.00 22,000,000.00 FHLB DISC NOTE 5.0006% 19,741,466.67 1,974,146.67 21,715,613.34
10,000,000.00 1,000,000.00 11,000,000.00 FHLB DISC NOTE (5.57%) 9,857,655.56 985,765.56 10,843,421.12
20,000,000.00 1,000,000.00 21,000,000.00 FHLB 5.510% 19,700,827.79 985,000.56 20,685,828.35
0.00 1,000,000.00 1,000,000.00 FHLB DN 0.00 979,421.95 979,421.95
8,653,000.00 0.00 8,653,000.00 FHLB 5.51% 8,470,234.22 0.00 8,470,234.22
10,000,000.00 1,000,000.00 11,000,000.00 FHLB AGY DISCOUNT NOTE 9,783,000.00 978,300.00 10,761,300.00
10,000,000.00 1,000,000.00 11,000,000.00 FHLB DISCOUNT NOTE 9,771,741.66 977,174.16 10,748,915.82
10,000,000.00 2,000,000.00 12,000,000.00 FHLB DISC. NOTE 9,754,475.00 1,950,716.12 11,705,191.12
10,000,000.00 0.00 10,000,000.00 FHLB DISC. NOTE 9,738,666.67 0.00 9,738,666.67
10,000,000.00 1,000,000.00 11,000,000.00 FHLB DISC NOTE 9,730,208.34 973,020.84 10,703,229.18
0.00 1,075,000.00 1,075,000.00 FHLMC DN 0.00 1,075,000.00 1,075,000.00
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.26%) 9,998,538.89 999,856.94 10,998,395.83
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.11%) 9,988,644.44 998,864.44 10,987,508.88
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.14%) 9,987,150.00 998,715.00 10,985,865.00
0.00 1,000,000.00 1,000,000.00 FHLMC DN 0.00 998,151.11 998,151.11
10,000,000.00 0.00 10,000,000.00 FHLMC DISC NOTE (5.24%) 9,979,622.22 0.00 9,979,622.22
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.35 %) 9,976,222.22 997,666.67 10,973,888.89
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.48%) 9,969,550.00 996,955.00 10,966,505.00
10,000,000.00 0.00 10,000,000.00 FHLMC DISC NOTE (5.54%) 9,938,444.45 0.00 9,938,444.45
20,666,000.00 2,073,000.00 22,739,000.00 FHLMC DISC NOTE (5.54%) 20,539,515.04 2,060,215.68 22,599,730.72
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.47%) 9,936,183.34 993,618.34 10,929,801.68
30,000,000.00 1,000,000.00 31,000,000.00 FHLMC DISC NOTE (5.61%) 29,801,961.11 993,382.78 30,795,343.89
10,000,000.00 0.00 10,000,000.00 FHLMC DISC NOTE (5.20%) 9,930,666.67 0.00 9,930,666.67
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.251%) 9,926,191.67 992,165.83 10,918,357.50
8,000,000.00 0.00 8,000,000.00 FHLMC DISC NOTE (5.20%) 7,936,444.45 0.00 7,936,444.45
17,725,000.00 2,000,000.00 19,725,000.00 FHLMC DISC NOTE (5.361%) 17,575,956.08 1,983,468.42 19,559,424.50
0.00 1,000,000.00 1,000,000.00 FHLMC DN 0.00 991,090.56 991,090.56
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.40%) 9,904,000.00 990,400.00 10,894,400.00
20,992,000.00 1,000,000.00 21,992,000.00 FHLMC DISC NOTE (5.47%) 20,784,476.23 990,123.61 21,774,599.84
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.47%) 9,896,677.78 989,667.78 10,886,345.56
20,000,000.00 1,000,000.00 21,000,000.00 FHLMC DISC NOTE (5.52 %) 19,786,208.33 989,354.16 20,775,562.49
20,000,000.00 0.00 20,000,000.00 FHLMC DISC NOTE (5.474) 19,784,751.67 0.00 19,784,751.67
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.53%) 9,883,255.55 988,325.55 10,871,581.10
0.00 1,000,000.00 1,000,000.00 FHLMC DN 0.00 988,148.34 988,148.34
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.52%) 9,871,200.00 987,120.00 10,858,320.00
20,567,000.00 0.00 20,567,000.00 FHLMC DISC NOTE (5.54%) 20,300,217.70 0.00 20,300,217.70
10,000,000.00 0.00 10,000,000.00 FHLMC DISC NOTE (5.580%) 9,862,050.00 0.00 9,862,050.00
0.00 1,000,000.00 1,000,000.00 FHLMC DN 0.00 985,996.11 985,996.11
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.64%) 9,848,200.00 984,820.00 10,833,020.00
</TABLE>
18
<PAGE> 162
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
20,000,000.00 1,000,000.00 21,000,000.00 FHLMC DISC NOTE (5.5400 19,674,226.67 983,734.89 20,657,961.56
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.76%) 9,828,302.78 982,830.28 10,811,133.06
10,000,000.00 0.00 10,000,000.00 FHLMC DISCOUNT NOTE 9,816,333.33 0.00 9,816,333.33
10,000,000.00 1,000,000.00 11,000,000.00 FHLMC DISC NOTE (5.587%) 9,792,039.45 979,203.95 10,771,243.40
15,000,000.00 3,000,000.00 18,000,000.00 FHLB FLOATER (Q24/TUE) 15,000,000.00 3,000,000.00 18,000,000.00
15,000,000.00 0.00 15,000,000.00 FHLB (FED FUNDS +4.5BPS) 14,997,233.61 0.00 14,997,233.61
10,000,000.00 2,000,000.00 12,000,000.00 FHLB FLOATER (Q9/WED) 10,000,000.00 2,000,000.00 12,000,000.00
10,000,000.00 0.00 10,000,000.00 FHLB (3MO TBILL+45BP) 10,000,000.00 0.00 10,000,000.00
10,000,000.00 0.00 10,000,000.00 FHLB FLOATER (Q06/D) 9,994,918.03 0.00 9,994,918.03
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.51%) 9,869,902.78 0.00 9,869,902.78
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.27%) 9,998,536.11 999,853.61 10,998,389.72
20,000,000.00 2,000,000.00 22,000,000.00 FNMA DISC NOTE (5.265) 19,985,368.06 1,998,536.81 21,983,904.87
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.203%) 9,991,233.33 999,123.33 10,990,356.66
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.74%) 9,989,772.22 998,977.22 10,988,749.44
20,000,000.00 1,000,000.00 21,000,000.00 FNMA DISC NOTE (5.10%) 19,974,125.00 998,687.50 20,972,812.50
20,000,000.00 0.00 20,000,000.00 FNMA DISC NOTE (5.23%) 19,965,100.00 0.00 19,965,100.00
15,000,000.00 1,000,000.00 16,000,000.00 FNMA DISC NOTE (5.24%) 14,969,433.33 997,962.22 15,967,395.55
10,000,000.00 2,100,000.00 12,100,000.00 FNMA DISC NOTE (5.53%) 9,926,266.67 2,085,000.00 12,011,266.67
40,000,000.00 3,000,000.00 43,000,000.00 FNMA DISC NOTE (5.57%) 39,708,722.22 2,978,097.22 42,686,819.44
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.52%) 9,917,200.00 991,720.00 10,908,920.00
0.00 1,000,000.00 1,000,000.00 FNMA DN 0.00 991,848.89 991,848.89
20,000,000.00 3,100,000.00 23,100,000.00 FNMA DISC NOTE 02/02/00 19,806,975.00 3,070,374.25 22,877,349.25
17,985,000.00 2,000,000.00 19,985,000.00 FNMA DISC NOTE (5.61%) 17,795,293.70 1,978,897.50 19,774,191.20
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.52%) 9,891,133.33 0.00 9,891,133.33
20,000,000.00 1,000,000.00 21,000,000.00 FNMA DISC NOTE (5.59%) 19,759,066.67 988,018.33 20,747,085.00
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.525) 9,838,854.17 984,745.84 10,823,600.01
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.76%) 9,838,055.55 983,805.55 10,821,861.10
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.53%) 9,820,275.00 0.00 9,820,275.00
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.60%) 9,802,444.44 0.00 9,802,444.44
20,000,000.00 1,000,000.00 21,000,000.00 FNMA DISC NOTE (5.27%) 19,592,444.44 979,622.22 20,572,066.66
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.58%) 9,786,100.00 0.00 9,786,100.00
10,187,000.00 0.00 10,187,000.00 FNMA DISC NOTE (5.48%) 9,962,150.27 0.00 9,962,150.27
10,000,000.00 1,000,000.00 11,000,000.00 FNMA DISC NOTE (5.48%) 9,777,755.55 977,775.55 10,755,531.10
10,000,000.00 0.00 10,000,000.00 FNMA DISC NOTE (5.59%) 9,759,319.45 0.00 9,759,319.45
20,000,000.00 1,000,000.00 21,000,000.00 FNMA DISC NOTE (5.54 ) 19,481,263.89 974,133.61 20,455,397.50
10,000,000.00 0.00 10,000,000.00 FNMA FLOATING RATE 9,995,481.56 0.00 9,995,481.56
10,293,867.01 0.00 10,293,867.01 FSQ GOVERNMENT MM #465 10,293,867.01 0.00 10,293,867.01
0.00 1,300,000.00 1,300,000.00 SLMA DN 0.00 1,289,337.83 1,289,337.83
10,000,000.00 0.00 10,000,000.00 SLMA (Q10/TUES) 9,997,926.23 0.00 9,997,926.23
</TABLE>
19
<PAGE> 163
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
20,000,000.00 0.00 20,000,000.00 SLMA (Q27/TUES) 19,983,721.31 0.00 19,983,721.31
12,000,000.00 0.00 12,000,000.00 SLMA FLOATER(Q13/T) 11,997,749.19 0.00 11,997,749.19
15,000,000.00 0.00 15,000,000.00 SLMA (3MO T-BILL+70BPS) 14,992,971.31 0.00 14,992,971.31
15,000,000.00 0.00 15,000,000.00 SLMA (Q/RATE) 14,999,814.05 0.00 14,999,814.05
15,000,000.00 5,000,000.00 20,000,000.00 SLMA FLOATER (Q12/T) 14,999,309.59 4,999,769.86 19,999,079.45
0.00 4,500,000.00 4,500,000.00 SLMA VRN 0.00 4,501,251.64 4,501,251.64
10,000,000.00 0.00 10,000,000.00 SLMA CALLABLE NOTE 5.05% 10,000,000.00 0.00 10,000,000.00
0 9153000 9,153,000.00 JP MORGAN 5.72% 12/01/99 0.00 9,153,000.00 9,153,000.00
1,681,350,867.01 101,301,000.00 1,782,651,867.01 1,669,310,716.55 100,515,121.86 1,769,825,838.41
</TABLE>
20
<PAGE> 164
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
Armada
Tax-Exempt
Armada Money Market
Parkstone Tax-Exempt Fund
Tax-Free Money Market Pro Forma
Fund Fund Combined
TOTAL INVESTMENTS: 88,795 531,783 620,578
------ ------- -------
ASSETS
Cash 0 0 0
Accrued Income 479 3,652 4,131
Investment Securities Sold 0 5,000 5,000
Cap Shares Sold 0 0 0
Other Assets 5 1078 112
TOTAL ASSETS: 89,279 540,542 629,821
------ ------- -------
LIABILITIES
Income Payable 216 1,445 1,661
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 3,508 3,508
Capital Shares Redeemed Payable 2 0 2
Accrued Expense Payable 71 507 578
Other Payables 0 0 0
TOTAL LIABILITIES: 289 5,460 5,749
------ ------- -------
TOTAL NET ASSETS: 88,990 535,082 624,072
21
<PAGE> 165
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Tax-Exempt
Armada Money Market
Parkstone Tax-Exempt Fund
Tax-Free Money Market ProForma Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 1,589 9,795 0 11,384
----- ------- ------- -------
TOTAL INCOME: 1,589 9,795 0 11,384
----- ------- ------- -------
EXPENSES:
Administrator Fees 109 207 (28) A 288
Investment Advisory Fees 182 1,036 - 1,218
Waiver of Investment Advisory Fees (1) (592) - (593)
Transfer Agent Fees 19 15 - 34
Custodian Fees 10 54 - 64
Professional Fees (Audit + Legal) 7 23 (3) A 27
Trustee (Directors) Fees 1 4 - 8
Registration Fees 7 26 - 33
12b-1 Fees 1 118 18 A 137
Shareholder Servicing Fees 0 148 1 A 149
Printing Expenses 7 16 - 23
Miscellaneous Expenses 1 55 - 53
TOTAL EXPENSES: (343) (1,110) (12) (1,441)
----- ------- ------- -------
NET INVESTMENT INCOME: 1,246 8,685 (12) 9,943
----- ------- ------- -------
Net Realized Gains (Losses) on Investments 0 0 0 0
Net Unrealized Appreciation (Depreciation)
of Investment Securities 0 0 0 0
----- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 0 0 0 0
----- ------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,246 8,685 (12) 9,943
----- ------- ------- -------
A-To adjust fees to reflect Armada's fee structure
</TABLE>
22
<PAGE> 166
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Tax-Exempt
Armada Money Market
Parkstone Tax-Exempt Fund
Tax-Free Money Market Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 1,246 8,685 9,931
Net Realized Gain (Loss) on Securities Sold - - -
Net Increase (Decrease) in Unrealized
Appreciation of Assets - - -
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,246 8,685 9,931
------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (1,234) (5,759) (6,993)
Investor A/Class A Shares (12) (2,843) (2,885)
Investor B/Class B Shares - - -
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (1,246) (8,602) (9,848)
------- ------- -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 80,947 381,535 462,482
Shares Issued in Lieu of Cash Distributions - 140 140
Shares Redeemed (102,778) (466,343) (569,121)
Net Institutional/Class I Share Transactions (21,831) (84,668) (106,499)
------- ------- -------
Investor A/Class A Shares
Shares Issued 1,134 252,307 253,441
Shares Issued in Lieu of Cash Distributions 11 2,417 2,428
Shares Redeemed (1,081) (259,704) (206,785)
Net Investor A/Class A Share Transactions 64 (4,980) (4,916)
------- ------- -------
Investor B/Class B Shares
Shares Issued - - -
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed - - -
Net Investor B/Class B Share Transactions - - -
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (21,767) (89,648) (111,415)
------- ------- -------
BEGINNING OF PERIOD: 110,757 624,647 735,404
------- ------- -------
END OF PERIOD: 88,990 535,082 624,072
------- ------- -------
</TABLE>
23
<PAGE> 167
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA TAX EXEMPT MONEY MARKET/
PARKSTONE TAX FREE
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares Shares Shares Security Description Market Value Market Value Market Value
------ ------ ------ -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
3,000,000.00 0.00 3,000,000.00 ABN AMRO MUNITOPS (M1\W) 3,000,000.00 0.00 3,000,000.00
6,000,000.00 0.00 6,000,000.00 ALLEGHENY CNTY (MB/D) 6,000,000.00 0.00 6,000,000.00
5,000,000.00 0.00 5,000,000.00 ALLEGHENY CNTY PA IDA 5,000,000.00 0.00 5,000,000.00
4,755,000.00 0.00 4,755,000.00 ALLEGHENY CNTY,PA MTG REV 4,755,000.00 0.00 4,755,000.00
0.00 1,270,000.00 1,270,000.00 BATH CNTY, KY 0.00 1,270,000.00 1,270,000.00
4,200,000.00 0.00 4,200,000.00 BECKER, MN PCR TECP 4,200,000.00 0.00 4,200,000.00
4,000,000.00 0.00 4,000,000.00 BECKER, MN. TECP 4,000,000.00 0.00 4,000,000.00
2,000,000.00 0.00 2,000,000.00 BELLEVUE, MI CMNY SCH GO 2,009,038.25 0.00 2,009,038.25
2,000,000.00 0.00 2,000,000.00 CARLTON WISC PCR (MB/D) 2,000,000.00 0.00 2,000,000.00
4,260,000.00 0.00 4,260,000.00 CHELAN CNTY, WA (MB/W) 4,260,000.00 0.00 4,260,000.00
1,545,000.00 0.00 1,545,000.00 CLARK CNTY, NV (MB/W) 1,545,000.00 0.00 1,545,000.00
4,300,000.00 0.00 4,300,000.00 COLORADO STATE (M1-TH) 4,300,000.00 0.00 4,300,000.00
7,700,000.00 0.00 7,700,000.00 COLORADO STATE (M1-WED) 7,700,000.00 0.00 7,700,000.00
2,000,000.00 0.00 2,000,000.00 COLUMBUS, OHIO (M1TH/TH) 2,000,000.00 0.00 2,000,000.00
10,575,000.00 3,000,000.00 13,575,000.00 COLUMBUS, OH. (MT\W) 10,575,000.00 3,000,000.00 13,575,000.00
2,200,000.00 0.00 2,200,000.00 COLUMBUS OHIO 2,200,000.00 0.00 2,200,000.00
0.00 1,300,000.00 1,300,000.00 CONSHOCTON 0.00 1,300,000.00 1,300,000.00
1,425,000.00 0.00 1,425,000.00 CUYAHOGA HOSP.(M1/TH) 1,425,000.00 0.00 1,425,000.00
2,625,000.00 0.00 2,625,000.00 DEL CNTY INDL AUTH RB 2,625,000.00 0.00 2,625,000.00
0.00 1,000,000.00 1,000,000.00 DELAWARE PA 0.00 1,000,000.00 1,000,000.00
2,000,000.00 0.00 2,000,000.00 DELAWARE CNTY,PA IDA TECP 2,000,000.00 0.00 2,000,000.00
2,000,000.00 0.00 2,000,000.00 DETROIT MICH RB (S1/W) 2,000,000.00 0.00 2,000,000.00
155,000.00 0.00 155,000.00 DUBLIN, OH CTY SCH DST GO 155,000.00 0.00 155,000.00
1,500,000.00 0.00 1,500,000.00 EASTERN, OH WSTWATER AUTH 1,500,012.86 0.00 1,500,012.86
3,500,000.00 0.00 3,500,000.00 EASTERN OH BD ANTIC NTE 3,508,050.00 0.00 3,508,050.00
2,700,000.00 0.00 2,700,000.00 EMERY COUNTY, UT (M1B/W) 2,700,000.00 0.00 2,700,000.00
</TABLE>
24
<PAGE> 168
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
8,000,000.00 0.00 8,000,000.00 FOREST, MS (M1-WED) 8,000,000.00 0.00 8,000,000.00
2,700,000.00 0.00 2,700,000.00 FORT WORTH TX. TECP 2,700,000.00 0.00 2,700,000.00
0.00 2,000,000.00 2,000,000.00 FORT WORTH TX. 0.00 2,000,000.00 2,000,000.00
0.00 1,500,000.00 1,500,000.00 FORT WORTH TX. 0.00 1,500,000.00 1,500,000.00
2,975,000.00 0.00 2,975,000.00 FOX VALLEY PARK, IL G.O. 2,975,304.79 0.00 2,975,304.79
0.00 1,850,000.00 1,850,000.00 FRANKLIN, IND 0.00 1,850,000.00 1,850,000.00
6,000,000.00 0.00 6,000,000.00 GEORGIA GO TR REC (S1/TH) 6,000,000.00 0.00 6,000,000.00
2,539,341.28 1,178,912.65 3,718,253.93 FSQ TAX EXEMPT MM #477 2,539,341.28 1,178,912.65 3,718,253.93
0.00 1,470,000.00 1,470,000.00 GOSHEN IND 0.00 1,470,000.00 1,470,000.00
0.00 2,405,000.00 2,405,000.00 GRANT CNTY 0.00 2,405,000.00 2,405,000.00
100,000.00 0.00 100,000.00 GREATER CLEVELAND, OH GO 100,000.00 0.00 100,000.00
3,500,000.00 0.00 3,500,000.00 HAMILTON OH BD ANTIC NTE 3,501,377.62 0.00 3,501,377.62
0.00 2,300,000.00 2,300,000.00 HAMPTON, VA 0.00 2,300,000.00 2,300,000.00
0.00 2,235,000.00 2,235,000.00 HARFORD MD 0.00 2,235,000.00 2,235,000.00
3,000,000.00 0.00 3,000,000.00 HARRIS CNTY, TX ANT NTE 3,003,774.49 0.00 3,003,774.49
2,000,000.00 0.00 2,000,000.00 HENNEPIN CNTY, MN (M1-WE) 2,000,000.00 0.00 2,000,000.00
4,000,000.00 0.00 4,000,000.00 HENNEPIN CNTY, MN (M1-WE) 4,000,000.00 0.00 4,000,000.00
1,600,000.00 0.00 1,600,000.00 HOUSTON, TX SCH DIST GO 1,604,817.18 0.00 1,604,817.18
5,000,000.00 0.00 5,000,000.00 HOUSTON TX GO TECP 5,000,000.00 0.00 5,000,000.00
4,000,000.00 0.00 4,000,000.00 HOUSTON TX CP NOTES 4,000,000.00 0.00 4,000,000.00
0.00 2,000,000.00 2,000,000.00 IL DEV AUTH 0.00 2,000,000.00 2,000,000.00
3,900,000.00 0.00 3,900,000.00 ILLINOIS DEV AUTH (MB/TH) 3,900,000.00 0.00 3,900,000.00
8,736,000.00 0.00 8,736,000.00 ILLINOIS ST (M1-WED) 8,736,000.00 0.00 8,736,000.00
3,000,000.00 0.00 3,000,000.00 ILLINOIS EDL FACS (M1/T) 3,000,000.00 0.00 3,000,000.00
0.00 1,000,000.00 1,000,000.00 ILL HEALTH 0.00 1,000,000.00 1,000,000.00
1,200,000.00 0.00 1,200,000.00 ILLINOIS ST (MB/D) 1,200,000.00 0.00 1,200,000.00
4,820,000.00 1,845,000.00 6,665,000.00 ILLINOIS STATE (MW/W) 4,820,000.00 1,845,000.00 6,665,000.00
2,000,000.00 0.00 2,000,000.00 ILLINOIS HEALTH FACS TECP 2,000,000.00 0.00 2,000,000.00
0.00 2,000,000.00 2,000,000.00 ILL HEALTH 0.00 2,000,000.00 2,000,000.00
5,000,000.00 0.00 5,000,000.00 ILLINOIS ST (S1/TH) 144A 5,000,000.00 0.00 5,000,000.00
2,550,000.00 0.00 2,550,000.00 INDIANA BANK, PRG NTS 2,551,767.76 0.00 2,551,767.76
4,300,000.00 900,000.00 5,200,000.00 INDIANA HEALTH (MW) 4,300,000.00 900,000.00 5,200,000.00
1,000,000.00 0.00 1,000,000.00 INDIANA HEALTH FAC 1,000,000.00 0.00 1,000,000.00
1,450,000.00 0.00 1,450,000.00 INDIANA HELTH FAC (MW/W) 1,450,000.00 0.00 1,450,000.00
4,250,000.00 0.00 4,250,000.00 INDIANA HEALTH (M1W/W) 4,250,000.00 0.00 4,250,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
5,000,000.00 0.00 5,000,000.00 INDIANA HLTH FACS TECP 5,000,000.00 0.00 5,000,000.00
10,000,000.00 0.00 10,000,000.00 INDIANA ST (M1W-WED) 10,000,000.00 0.00 10,000,000.00
0.00 1,050,000.00 1,050,000.00 INDIANA DEV 0.00 1,050,000.00 1,050,000.00
0.00 1,000,000.00 1,000,000.00 INDIANA DEV 0.00 1,000,000.00 1,000,000.00
0.00 1,100,000.00 1,100,000.00 INDIANA DEV 0.00 1,100,000.00 1,100,000.00
3,300,000.00 0.00 3,300,000.00 INTERMNT PWR, TECP 3,300,000.00 0.00 3,300,000.00
2,000,000.00 0.00 2,000,000.00 INTERMN POWR, UT TECP 2,000,000.00 0.00 2,000,000.00
4,000,000.00 0.00 4,000,000.00 INTERMOUNTAIN POWER, TECP 4,000,000.00 0.00 4,000,000.00
5,000,000.00 0.00 5,000,000.00 INTERMNT POWER, UT TECP 5,000,000.00 0.00 5,000,000.00
0.00 1,500,000.00 1,500,000.00 INTERMNT POWER, UT TECP 0.00 1,500,000.00 1,500,000.00
0.00 2,000,000.00 2,000,000.00 JACKSON CNTY, MS 0.00 2,000,000.00 2,000,000.00
4,400,000.00 0.00 4,400,000.00 JACKSON CNTY, MS TECP 4,400,000.00 0.00 4,400,000.00
5,750,000.00 0.00 5,750,000.00 JACKSONVILLE CP NOTES 5,750,000.00 0.00 5,750,000.00
3,000,000.00 0.00 3,000,000.00 JACKSONVILLE FL PCR TECP 3,000,000.00 0.00 3,000,000.00
5,810,000.00 0.00 5,810,000.00 JACKSONVILLE, FL PCR TECP 5,810,000.00 0.00 5,810,000.00
4,000,000.00 0.00 4,000,000.00 JEFFERSON, KY. PCR TECP 4,000,000.00 0.00 4,000,000.00
0.00 2,000,000.00 2,000,000.00 JEFFERSON, KY. PCR 0.00 2,000,000.00 2,000,000.00
5,000,000.00 0.00 5,000,000.00 KENTCKY LCL SCH ANTIC NTE 5,012,500.28 0.00 5,012,500.28
2,000,000.00 0.00 2,000,000.00 KENTUCKY TRNPIKE AUTH RB 2,063,864.17 0.00 2,063,864.17
0.00 2,000,000.00 2,000,000.00 KING CNTY, WA 0.00 2,000,000.00 2,000,000.00
0.00 1,035,000.00 1,035,000.00 LEWIS CNTY, KY 0.00 1,035,000.00 1,035,000.00
1,550,000.00 0.00 1,550,000.00 LEXINGTON-FAYETTE KY. RB 1,551,876.70 0.00 1,551,876.70
2,000,000.00 0.00 2,000,000.00 LINCOLN CNTY, WY PCR TECP 2,000,000.00 0.00 2,000,000.00
600,000.00 0.00 600,000.00 LUCAS CNTY, OH GO 600,000.00 0.00 600,000.00
100,000.00 0.00 100,000.00 LUCAS CNTY, OH GO 100,000.00 0.00 100,000.00
6,600,000.00 0.00 6,600,000.00 MAHONING CNTY, OH (MB/T) 6,600,000.00 0.00 6,600,000.00
2,300,000.00 0.00 2,300,000.00 MAINE HEALTH & HIGHER ED 2,300,000.00 0.00 2,300,000.00
2,000,000.00 0.00 2,000,000.00 MARICOPA CNTY, AZ TECP 2,000,000.00 0.00 2,000,000.00
0.00 1,000,000.00 1,000,000.00 MARICOPA CNTY, AZ 0.00 1,000,000.00 1,000,000.00
0.00 2,600,000.00 2,600,000.00 MARICOPA CNTY, AZ 0.00 2,600,000.00 2,600,000.00
2,000,000.00 0.00 2,000,000.00 MARICOPA CNTY, AZ (MB/D) 2,000,000.00 0.00 2,000,000.00
750,000.00 0.00 750,000.00 MASON, OH GO 750,668.57 0.00 750,668.57
725,000.00 0.00 725,000.00 MASSACHUSETTS ST G.O. 746,710.72 0.00 746,710.72
1,800,000.00 0.00 1,800,000.00 MASSILLON OH BD ANT NTE 1,801,007.41 0.00 1,801,007.41
4,500,000.00 0.00 4,500,000.00 MAYFIELD VILLAGE, OH BAN 4,505,329.18 0.00 4,505,329.18
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
2,000,000.00 0.00 2,000,000.00 MICHIGAN MUNICIPAL RB 2,000,000.00 0.00 2,000,000.00
0.00 1,450,000.00 1,450,000.00 MICH BLDG 01/12/00 0.00 1,450,000.00 1,450,000.00
5,000,000.00 0.00 5,000,000.00 MICHIGAN ST. (S1/THUR) 5,000,000.00 0.00 5,000,000.00
3,900,000.00 0.00 3,900,000.00 MICHIGAN HDA (MW/W) 3,900,000.00 0.00 3,900,000.00
2,500,000.00 4,300,000.00 6,800,000.00 MICHIGAN STATE (MB-D) 2,500,000.00 4,300,000.00 6,800,000.00
5,800,000.00 0.00 5,800,000.00 MICHIGAN STRATEGIC (M1/D) 5,800,000.00 0.00 5,800,000.00
0.00 1,000,000.00 1,000,000.00 BOC MICHIGAN 0.00 1,000,000.00 1,000,000.00
1,160,000.00 0.00 1,160,000.00 MILFORD CITY OHIO 1,160,697.92 0.00 1,160,697.92
3,235,000.00 2,000,000.00 5,235,000.00 MINNEAPOLIS, MN RB (Q1) 3,235,000.00 2,000,000.00 5,235,000.00
1,600,000.00 0.00 1,600,000.00 MINNEAPOLIS, MN (M1-THR) 1,600,000.00 0.00 1,600,000.00
4,000,000.00 0.00 4,000,000.00 MINNEAPOLIS MN (Q1-TH) 4,000,000.00 0.00 4,000,000.00
1,830,000.00 0.00 1,830,000.00 MINNEAPOLIS, MN (QB/TH) 1,830,000.00 0.00 1,830,000.00
6,350,000.00 0.00 6,350,000.00 MINNEAPOLIS, MN (MB/T) 6,350,000.00 0.00 6,350,000.00
2,000,000.00 0.00 2,000,000.00 MINNESOTA SCH DISTS COP 2,000,000.00 0.00 2,000,000.00
2,000,000.00 0.00 2,000,000.00 MINNESOTA SCH DIS ANTC NT 2,000,000.00 0.00 2,000,000.00
3,400,000.00 0.00 3,400,000.00 MINNESOTA TX & AID AN NTE 3,400,000.00 0.00 3,400,000.00
0.00 2,700,000.00 2,700,000.00 MISSOURI EDU 0.00 2,700,000.00 2,700,000.00
2,100,000.00 0.00 2,100,000.00 MISSOURI STATE (M1-TH) 2,100,000.00 0.00 2,100,000.00
1,000,000.00 0.00 1,000,000.00 MISSOURI ST (M1-TH) 1,000,000.00 0.00 1,000,000.00
4,100,000.00 0.00 4,100,000.00 FEDERATED TAX-FREE MM #15 4,100,000.00 0.00 4,100,000.00
4,100,000.00 0.00 4,100,000.00 MONROE, MICH (M1B-D) 4,100,000.00 0.00 4,100,000.00
3,500,000.00 0.00 3,500,000.00 MONTGOMERY, CNTY. MD TECP 3,500,000.00 0.00 3,500,000.00
2,500,000.00 0.00 2,500,000.00 MT. MORRIS MI ST AID NTS 2,504,487.15 0.00 2,504,487.15
5,435,000.00 0.00 5,435,000.00 MUNCPL ELEC AUTH GA TECP 5,435,000.00 0.00 5,435,000.00
2,657,000.00 0.00 2,657,000.00 MUNI ELEC AUTH GA TECP 2,657,000.00 0.00 2,657,000.00
0.00 1,403,397.31 1,403,397.31 MUNI CASH MUTUAL FUND 0.00 1,403,397.31 1,403,397.31
2,650,000.00 0.00 2,650,000.00 MUSKINGUM CNTY, OH BAN 2,653,836.97 0.00 2,653,836.97
1,980,000.00 0.00 1,980,000.00 MUSKINGUM CNTY, OH BD ANT 1,983,838.15 0.00 1,983,838.15
1,000,000.00 0.00 1,000,000.00 NEW HAMPSHIRE MB1/W 1,000,000.00 0.00 1,000,000.00
1,000,000.00 0.00 1,000,000.00 NEW HAMPSHIRE ST GO 1,003,058.13 0.00 1,003,058.13
5,000,000.00 0.00 5,000,000.00 NORFOLK, VA IDA TECP 5,000,000.00 0.00 5,000,000.00
10,600,000.00 0.00 10,600,000.00 N.CAROLINA ST (M1-TH) 10,600,000.00 0.00 10,600,000.00
2,000,000.00 0.00 2,000,000.00 NORTH CAROLINA (M1W/W) 2,000,000.00 0.00 2,000,000.00
2,000,000.00 0.00 2,000,000.00 NORTHAMPTON, PA (MB/TH) 2,000,000.00 0.00 2,000,000.00
700,000.00 0.00 700,000.00 NSIDE TEXAS SCH DIST GO 712,609.56 0.00 712,609.56
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
100,000.00 0.00 100,000.00 NORTHWST OHIO SCH DIST GO 100,000.00 0.00 100,000.00
3,100,000.00 0.00 3,100,000.00 OAK CREEK, WI (M1B/WED) 3,100,000.00 0.00 3,100,000.00
0.00 250,000.00 250,000.00 OAKLAND CA 0.00 250,266.76 250,266.76
1,505,000.00 0.00 1,505,000.00 OCONEE CNTY, SC GO 1,515,791.55 0.00 1,515,791.55
3,000,000.00 0.00 3,000,000.00 OHIO STATE 3,000,000.00 0.00 3,000,000.00
1,050,000.00 0.00 1,050,000.00 OHIO STATE (M1/D) 1,050,000.00 0.00 1,050,000.00
4,780,000.00 0.00 4,780,000.00 OHIO STATE (MB/TH) 4,780,000.00 0.00 4,780,000.00
1,685,000.00 0.00 1,685,000.00 OHIO ST INFRASTRCTRE RB 1,685,802.58 0.00 1,685,802.58
1,250,000.00 0.00 1,250,000.00 OHIO STATE UNIV (QB/TH) 1,250,000.00 0.00 1,250,000.00
2,710,000.00 0.00 2,710,000.00 OHIO STATE (Q1B-TH) 2,710,000.00 0.00 2,710,000.00
3,310,000.00 2,140,000.00 5,450,000.00 OLMSTED CNTY, MN (M1B/TH) 3,310,000.00 2,140,000.00 5,450,000.00
0.00 670,000.00 670,000.00 ORANGE CNTY, OH 0.00 670,000.00 670,000.00
200,000.00 0.00 200,000.00 ORRVILLE, OH RB 200,000.00 0.00 200,000.00
4,765,000.00 0.00 4,765,000.00 OWENSBORO DAVIES KY, BAN 4,782,264.29 0.00 4,782,264.29
100,000.00 0.00 100,000.00 PA HIGHER EDUCATION MB/W 100,000.00 0.00 100,000.00
1,000,000.00 0.00 1,000,000.00 PENN ST. (MB/D) 1,000,000.00 0.00 1,000,000.00
1,000,000.00 3,000,000.00 4,000,000.00 PENNSYLVANIA STATE (MB/W) 1,000,000.00 3,000,000.00 4,000,000.00
2,000,000.00 0.00 2,000,000.00 PA ST IND DEV AUTH RB 2,003,236.82 0.00 2,003,236.82
1,150,000.00 0.00 1,150,000.00 PENNSYLVANIA STATE 1,150,000.00 0.00 1,150,000.00
1,850,000.00 0.00 1,850,000.00 PIKE DELTA YORK SCH 1,851,711.35 0.00 1,851,711.35
0.00 845,000.00 845,000.00 ANGELES WA 0.00 845,000.00 845,000.00
0.00 2,000,000.00 2,000,000.00 PORTLAND OR 0.00 2,000,000.00 2,000,000.00
0.00 2,000,000.00 2,000,000.00 PORTLAND OR 0.00 2,000,040.58 2,000,040.58
930,000.00 0.00 930,000.00 PURDUE UNIV (QB/WED) 930,000.00 0.00 930,000.00
5,850,000.00 1,000,000.00 6,850,000.00 PURDUE UNIV, IN (Q1-WED) 5,850,000.00 1,000,000.00 6,850,000.00
4,000,000.00 0.00 4,000,000.00 QUAKERTOWN, PA (MB/TU) 4,000,000.00 0.00 4,000,000.00
2,745,000.00 0.00 2,745,000.00 QUAKERTOWN, PA (M1/TUE) 2,745,000.00 0.00 2,745,000.00
3,400,000.00 0.00 3,400,000.00 RICHLAND CNTY, SC GO 3,407,592.16 0.00 3,407,592.16
1,500,000.00 0.00 1,500,000.00 ROCHESTER MN. TECP 1,500,000.00 0.00 1,500,000.00
0.00 2,200,000.00 2,200,000.00 ROSHES MINN 0.00 2,200,000.00 2,200,000.00
0.00 1,145,000.00 1,145,000.00 RUTHERFORD 0.00 1,147,768.68 1,147,768.68
2,000,000.00 0.00 2,000,000.00 PARRISH OF ST. JAMES TECP 2,000,000.00 0.00 2,000,000.00
1,570,000.00 0.00 1,570,000.00 ST MARYS, OH BD ANTIC NTE 1,572,422.29 0.00 1,572,422.29
5,000,000.00 0.00 5,000,000.00 SALT RIVER PRJ. TECP 5,000,000.00 0.00 5,000,000.00
4,000,000.00 0.00 4,000,000.00 SALT RIVER PRJ, AZ TECP 4,000,000.00 0.00 4,000,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
6,000,000.00 0.00 6,000,000.00 SALT RIVER PRJ. AZ TECP 6,000,000.00 0.00 6,000,000.00
0.00 1,000,000.00 1,000,000.00 SALT RIVER PRJ. AZ TECP 0.00 1,000,000.00 1,000,000.00
0.00 1,000,000.00 1,000,000.00 SALT RIVER PRJ. AZ TECP 0.00 1,000,000.00 1,000,000.00
0.00 1,500,000.00 1,500,000.00 SAN ANTONIO TX 0.00 1,500,000.00 1,500,000.00
2,000,000.00 0.00 2,000,000.00 SAVANNAH, GA (M1-WE) 2,000,000.00 0.00 2,000,000.00
2,000,000.00 0.00 2,000,000.00 SAYRE PA HLTH CARE (M1/W) 2,000,000.00 0.00 2,000,000.00
0.00 2,700,000.00 2,700,000.00 SOMERVILLE, MA 0.00 2,700,000.00 2,700,000.00
4,000,000.00 0.00 4,000,000.00 SOUTH CAROLINA TECP 4,000,000.00 0.00 4,000,000.00
3,000,000.00 0.00 3,000,000.00 S. CAROLINA TECP 3,000,000.00 0.00 3,000,000.00
3,400,000.00 0.00 3,400,000.00 SULLIVAN, IN. TECP 3,400,000.00 0.00 3,400,000.00
8,000,000.00 0.00 8,000,000.00 SUMMIT CNTY, OH BAN GO 8,023,247.03 0.00 8,023,247.03
2,000,000.00 0.00 2,000,000.00 TENNESSEE STATE (TH) 2,000,000.00 0.00 2,000,000.00
5,800,000.00 0.00 5,800,000.00 TENNESSEE ST. TECP 5,800,000.00 0.00 5,800,000.00
0.00 1,300,000.00 1,300,000.00 TENN STATE 0.00 1,300,000.00 1,300,000.00
8,000,000.00 0.00 8,000,000.00 TEXAS TAX & REVENUE 8,046,302.24 0.00 8,046,302.24
0.00 520,000.00 520,000.00 TEXAS PUBLIC 0.00 522,495.32 522,495.32
4,220,000.00 0.00 4,220,000.00 TOLEDO (M1/TH) 4,220,000.00 0.00 4,220,000.00
200,000.00 0.00 200,000.00 TWINSBURG, OHIO GO 200,000.00 0.00 200,000.00
1,375,000.00 0.00 1,375,000.00 U. OF CINCINNATI ANTIC NT 1,375,167.72 0.00 1,375,167.72
1,350,000.00 0.00 1,350,000.00 U. OF MICHIGAN (M1/D) 1,350,000.00 0.00 1,350,000.00
0.00 2,300,000.00 2,300,000.00 NC CHA HILL 0.00 2,300,000.00 2,300,000.00
4,000,000.00 0.00 4,000,000.00 UNIVERSITY TEXAS TECP 4,000,000.00 0.00 4,000,000.00
3,850,000.00 0.00 3,850,000.00 UNIVERSITY OF UTAH (MW/W) 3,850,000.00 0.00 3,850,000.00
0.00 3,000,000.00 3,000,000.00 UTAH CITY 0.00 3,000,000.00 3,000,000.00
6,000,000.00 0.00 6,000,000.00 VALDEZ, AK (MB-WED) 6,000,000.00 0.00 6,000,000.00
3,300,000.00 0.00 3,300,000.00 VALDEZ AK MARINE TRM TECP 3,300,000.00 0.00 3,300,000.00
1,300,000.00 0.00 1,300,000.00 VERMONT ST GO 1,307,846.46 0.00 1,307,846.46
1,215,000.00 0.00 1,215,000.00 VERMONT STATE GO 1,216,748.49 0.00 1,216,748.49
7,000,000.00 0.00 7,000,000.00 VIRGINIA ST AUTH (THURS) 7,000,000.00 0.00 7,000,000.00
115,000.00 0.00 115,000.00 WARREN CNTY, OHIO GO 115,000.00 0.00 115,000.00
3,730,000.00 0.00 3,730,000.00 WASHINGTON CO., PA (MB/W) 3,730,000.00 0.00 3,730,000.00
7,200,000.00 2,500,000.00 9,700,000.00 WASHINGTON ST HEALTH (M1) 7,200,000.00 2,500,000.00 9,700,000.00
3,000,000.00 0.00 3,000,000.00 W. DEPTFORD NJ ANT NTE 3,002,509.22 0.00 3,002,509.22
100,000.00 0.00 100,000.00 WHITEHALL OHIO GO 100,000.00 0.00 100,000.00
8,300,000.00 0.00 8,300,000.00 WINSTON, NC (MB/TH) 8,300,000.00 0.00 8,300,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 325,000.00 325,000.00 WISCONSIN GO 0.00 327,236.61 327,236.61
4,085,000.00 0.00 4,085,000.00 WISCONSIN GO CP NOTES 4,085,000.00 0.00 4,085,000.00
6,350,000.00 0.00 6,350,000.00 WISC.ST GO CP NOTES 6,350,000.00 0.00 6,350,000.00
6,010,000.00 0.00 6,010,000.00 WISCONSIN GO CP NOTES 6,010,000.00 0.00 6,010,000.00
700,000.00 0.00 700,000.00 WOOSTER OHIO IDR (MW/W) 700,000.00 0.00 700,000.00
531,492,341.28 88,787,309.96 620,279,651.24 531,782,611.34 88,795,117.91 620,577,729.25
</TABLE>
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STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
Armada
Bond Fund
Parkstone Armada Pro Forma
Bond Fund Bond Fund Combined
TOTAL INVESTMENTS: 374,186 696,414 1,070,600
------- ------- ---------
ASSETS
Cash 0 517 517
Accrued Income 3,348 6,760 10,108
Investment Securities Sold 0 3 3
Cap Shares Sold 1 1 2
Other Assets 11 116 127
TOTAL ASSETS: 377,546 703,811 1,081,357
------- ------- ---------
LIABILITIES
Income Payable 1,804 3,560 5,364
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 10 0 10
Accrued Expense Payable 311 575 886
Other Payables 27,485 0 27,485
TOTAL LIABILITIES: 29,610 4,135 33,745
------- ------- ---------
TOTAL NET ASSETS: 347,936 699,676 1,047,612
31
<PAGE> 175
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Bond Fund
Parkstone Armada ProForma ProForma
Bond Fund Bond Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 12,448 24,810 0 37,258
------ ------ ------- ------
TOTAL INCOME: 12,448 24,810 0 37,258
------ ------ ------- ------
EXPENSES:
Administrator Fees 418 256 (108) A 566
Investment Advisory Fees 1,228 2,013 - 3,241
Waiver of Investment Advisory Fees (85) 0 - (85)
Transfer Agent Fees 60 35 - 95
Custodian Fees 23 73 - 96
Professional Fees (Audit + Legal) 16 23 (8) A 31
Trustee (Directors) Fees 3 9 - 12
Registration Fees 15 113 - 128
12b-1 Fees 31 149 58 A 238
Shareholder Servicing Fees 0 5 10 15
Printing Expenses 20 23 - 43
Miscellaneous Expenses 6 3 - 9
TOTAL EXPENSES: (1,735) (2,702) (48) (4,389)
------ ------ ------- ------
NET INVESTMENT INCOME: 10,713 22,108 (48) 32,869
------ ------ ------- ------
Net Realized Gains (Losses) on Investments (5,522) (12,128) 0 (17,650)
Net Unrealized Appreciation (Depreciation)
of Investment Securities (3,690) (8,054) 0 (11,744)
------ ------ ------- ------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (9,212) (20,182) 0 (29,394)
------ ------ ------- ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,501 1,926 (48) 3,475
------ ------ ------- ------
A-To adjust fees to reflect Armada's fee structure
</TABLE>
32
<PAGE> 176
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Bond Fund
Parkstone Armada Pro Forma
Bond Fund Bond Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 10,713 22,108 32,821
Net Realized Gain (Loss) on Securities Sold (5,522) (12,128) (17,650)
Net Increase (Decrease) in Unrealized
Appreciation of Assets (3,690) (8,054) (11,744)
------- ------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,501 1,926 3,427
------- ------- ---------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (10,343) (21,939) (32,282)
Investor A/Class A Shares (276) (93) (369)
Investor B/Class B Shares (94) (18) (112)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (10,713) (22,050) (32,763)
------- ------- ---------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 18,913 28,363 47,276
Shares Issued in Lieu of Cash Distributions 6,370 2,800 9,170
Shares Redeemed (46,195) (74,231) (120,426)
Net Institutional/Class I Share Transactions (20,912) (43,068) (63,980)
------- ------- ---------
Investor A/Class A Shares
Shares Issued 416 2,130 2,546
Shares Issued in Lieu of Cash Distributions 231 51 282
Shares Redeemed (4,109) (1,517) (5,626)
Net Investor A/Class A Share Transactions (3,462) 664 (2,798)
------- ------- ---------
Investor B/Class B Shares
Shares Issued 46 155 201
Shares Issued in Lieu of Cash Distributions 79 17 96
Shares Redeemed (1,297) (210) (1,507)
Net Investor B/Class B Share Transactions (1,172) (38) (1,210)
------- ------- ---------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (25,546) (42,442) (67,988)
------- ------- ---------
BEGINNING OF PERIOD: 382,694 762,242 1,144,936
------- ------- ---------
END OF PERIOD: 347,936 699,676 1,047,612
------- ------- ---------
</TABLE>
33
<PAGE> 177
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA BOND /
PARKSTONE BOND
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ----------- ----------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
10,465,000.00 6,700,000.00 17,165,000.00 AMERICAN GREETINGS 9,549,312.50 6,113,750.00 15,663,062.50
8,489,608.12 4,577,729.87 13,067,337.99 AMRES 99 1 NIM 8,298,591.94 4,474,730.95 12,773,322.89
6,900,000.00 5,000,000.00 11,900,000.00 ARCHER DANIELS 6,770,625.00 4,906,250.00 11,676,875.00
6,700,000.00 3,000,000.00 9,700,000.00 ARROW ELECTRONIC 6,035,808.90 2,655,000.00 8,690,808.90
3,100,000.00 2,145,000.00 5,245,000.00 BRADLEY OPER LTD PRTNSHP 2,948,794.40 2,040,375.48 4,989,169.88
8,170,000.00 4,950,000.00 13,120,000.00 BRUNSWICK CORP 6.75% 7,741,075.00 4,690,125.00 12,431,200.00
3,000,000.00 0.00 3,000,000.00 CIGNA CORPORATION 5/15/07 2,951,250.00 0.00 2,951,250.00
2,000,000.00 0.00 2,000,000.00 CSX TRANSPORT MTN 7.54% 2,020,220.00 0.00 2,020,220.00
3,900,000.00 1,965,000.00 5,865,000.00 CHAMP 6.71% SER 1997-2 A5 3,799,243.50 1,914,234.23 5,713,477.73
8,000,000.00 5,610,000.00 13,610,000.00 CITICORP 7,480,000.00 5,245,350.00 12,725,350.00
5,500,000.00 3,000,000.00 8,500,000.00 COMMERCIAL NET 5,396,875.00 2,943,750.00 8,340,625.00
12,250,000.00 6,500,000.00 18,750,000.00 COMPUTER ASSOCIATES INTL 11,821,250.00 6,272,500.00 18,093,750.00
7,500,000.00 9,000,000.00 16,500,000.00 FIRST BOSTON MTG SECS 7,374,600.00 8,849,520.00 16,224,120.00
4,800,000.00 2,000,000.00 6,800,000.00 CUMMINS ENGINE, (6.45%) 4,536,000.00 1,890,000.00 6,426,000.00
2,220,000.00 1,325,000.00 3,545,000.00 DAIMLER CHRYSLER 2,217,225.00 1,323,343.75 3,540,568.75
0.00 2,664,254.75 2,664,254.75 EQCC 93-4A 5.725% 12/15/08 0.00 2,596,236.33 2,596,236.33
0.00 6,000,000.00 6,000,000.00 EQVA 97-4 7.045% 12/25/28 0.00 5,892,702.00 5,892,702.00
0.00 5,845,000.00 5,845,000.00 EXCEL RTY 6.875% 10/15/04 0.00 5,720,793.75 5,720,793.75
2,257,526.70 0.00 2,257,526.70 EXPORT FUNDING TRUST 2,377,311.07 0.00 2,377,311.07
25,734.54 0.00 25,734.54 FHLMC POOL #E60894 26,120.56 0.00 26,120.56
110,250.88 0.00 110,250.88 FHLMC POOL #E61277 111,835.18 0.00 111,835.18
3,590,276.18 0.00 3,590,276.18 FHLMC POOL # E61976 3,584,639.05 0.00 3,584,639.05
293,080.59 0.00 293,080.59 FHLMC POOL #E64179 297,476.80 0.00 297,476.80
159,994.87 0.00 159,994.87 FHLMC POOL #E64198 162,394.80 0.00 162,394.80
9,102.63 0.00 9,102.63 FHLMC POOL #E64229 9,233.44 0.00 9,233.44
620,376.42 0.00 620,376.42 FHLMC POOL #E64248 629,682.07 0.00 629,682.07
7,183,722.32 0.00 7,183,722.32 FNMA POOL #C00690 6,672,520.16 0.00 6,672,520.16
1,961,521.54 0.00 1,961,521.54 FNMA POOL #C18901 1,821,937.35 0.00 1,821,937.35
7,816,635.58 3,318,473.32 11,135,108.90 FHLMC POOL #C18271 7,660,302.87 3,247,955.76 10,908,258.63
</TABLE>
34
<PAGE> 178
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
301,843.54 0.00 301,843.54 FHLMC POOL # E00164 296,464.69 0.00 296,464.69
0.00 1,563,817.23 1,563,817.23 FHLMC A00873 9.50% 10/01/20 0.00 1,675,083.39 1,675,083.39
0.00 715,305.47 715,305.47 FHLMC GOLD 9.00% 05/01/20 0.00 754,548.57 754,548.57
2,127,541.77 0.00 2,127,541.77 FHLMC POOL #80322 2,173,411.57 0.00 2,173,411.57
505,745.03 0.00 505,745.03 FHLMC POOL#E20204 496,732.65 0.00 496,732.65
137,689.65 0.00 137,689.65 FHLMC POOL #E20206 139,755.00 0.00 139,755.00
18,502.20 0.00 18,502.20 FHLMC GTMTG 78C 9.4% 19,007.13 0.00 19,007.13
419,833.85 0.00 419,833.85 FHLMC POOL#141138 427,835.88 0.00 427,835.88
60,531.09 0.00 60,531.09 FHLMC POOL # 252804 63,670.83 0.00 63,670.83
46,047.28 0.00 46,047.28 FHLMC POOL# 219329 47,989.55 0.00 47,989.55
14,498.67 0.00 14,498.67 FHLMC POOL #294315 15,246.22 0.00 15,246.22
168,799.49 0.00 168,799.49 FHLMC POOL #450074 177,502.79 0.00 177,502.79
6,639.98 0.00 6,639.98 FHLMC POOL #280417 6,957.44 0.00 6,957.44
62,084.34 0.00 62,084.34 FHLMC POOL # E31059 64,276.53 0.00 64,276.53
751,935.98 0.00 751,935.98 FHLMC POOL #E50893 741,596.86 0.00 741,596.86
3,140,000.00 0.00 3,140,000.00 FANNIE MAE (6.375%) 3,047,307.20 0.00 3,047,307.20
37,078.81 0.00 37,078.81 FNMA POOL # 1125 39,094.78 0.00 39,094.78
92,982.68 0.00 92,982.68 FNMA POOL# 31592 93,737.69 0.00 93,737.69
69,668.34 0.00 69,668.34 FNMA POOL # 35366 72,432.78 0.00 72,432.78
109,931.83 0.00 109,931.83 FNMA POOL# 77831 110,824.47 0.00 110,824.47
0.00 1,251,967.85 1,251,967.85 FNMA 084251 9.00% 08/01/09 0.00 1,310,259.47 1,310,259.47
899,743.00 0.00 899,743.00 FNMA POOL # 190506 887,929.37 0.00 887,929.37
116,917.53 0.00 116,917.53 FNMA POOL# 210452 124,589.66 0.00 124,589.66
0.00 1,559,513.38 1,559,513.38 FNMA 250273 8.50% 07/01/25 0.00 1,608,248.17 1,608,248.17
4,136,679.78 0.00 4,136,679.78 FNMA POOL #250060 4,158,645.55 0.00 4,158,645.55
4,253,444.94 0.00 4,253,444.94 FNMA POOL # 250433 4,261,398.88 0.00 4,261,398.88
9,321,191.58 0.00 9,321,191.58 FNMA POOL #252162 8,895,221.89 0.00 8,895,221.89
3,480,679.65 0.00 3,480,679.65 FNMA POOL # 252212 3,320,777.23 0.00 3,320,777.23
0.00 1,789,247.22 1,789,247.22 FNMA 280518 9.00 11/01/24 0.00 1,872,554.57 1,872,554.57
10,000,000.00 4,050,000.00 14,050,000.00 FEDERAL RLTY INVS TRST 9,888,700.00 4,004,923.50 13,893,623.50
1,001,146.23 0.00 1,001,146.23 FNMA POOL # 316357 999,894.80 0.00 999,894.80
2,296,486.27 0.00 2,296,486.27 FNMA POOL #322344 2,300,780.70 0.00 2,300,780.70
2,358,999.42 0.00 2,358,999.42 FNMA POOL #346316 2,365,628.21 0.00 2,365,628.21
1,027,804.21 0.00 1,027,804.21 FNMA POOL #407603 1,028,441.45 0.00 1,028,441.45
0.00 688,510.72 688,510.72 FNMA 394035 6.50 10/01/27 0.00 656,880.54 656,880.54
0.00 103,145.99 103,145.99 FNMA 394026 6.50 09/01/27 0.00 98,407.46 98,407.46
0.00 681,638.69 681,638.69 FNMA 397372 6.50 08/01/27 0.00 650,324.21 650,324.21
0.00 104,209.67 104,209.67 FNMA 398938 6.50 10/01/27 0.00 99,422.28 99,422.28
0.00 732,215.08 732,215.08 FNMA 402609 6.50 12/01/27 0.00 698,577.12 698,577.12
</TABLE>
35
<PAGE> 179
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 721,239.90 721,239.90 FNMA 403480 6.50 12/01/27 0.00 688,106.14 688,106.14
0.00 121,558.90 121,558.90 FNMA 404323 6.50 12/01/27 0.00 115,974.48 115,974.48
0.00 26,856.83 26,856.83 FNMA 406501 6.50 12/01/27 0.00 25,623.03 25,623.03
5,295,001.46 0.00 5,295,001.46 FNMA POOL #413863 5,293,307.06 0.00 5,293,307.06
1,221,910.96 0.00 1,221,910.96 FNMA POOL #417392 1,168,452.36 0.00 1,168,452.36
3,964,259.76 0.00 3,964,259.76 FNMA POOL #420621 3,960,533.36 0.00 3,960,533.36
0.00 9,429.99 9,429.99 FNMA 435081 6.0% 07/01/28 0.00 8,749.24 8,749.24
1,224,081.18 0.00 1,224,081.18 FNMA POOL #435082 1,135,714.76 0.00 1,135,714.76
996,408.11 0.00 996,408.11 FNMA POOL #440148 950,873.20 0.00 950,873.20
2,014,546.95 0.00 2,014,546.95 FNMA POOL #441542 2,012,028.77 0.00 2,012,028.77
1,037,523.92 0.00 1,037,523.92 FNMA POOL #446109 1,035,412.56 0.00 1,035,412.56
4,786,430.11 0.00 4,786,430.11 FNMA POOL #448509 4,485,627.44 0.00 4,485,627.44
0.00 9,991,179.86 9,991,179.86 FNMA 6.5% 11 01 28 0.00 9,534,592.33 9,534,592.33
0.00 5,639,579.83 5,639,579.83 FNMA 448727 6.0% 12/01/28 0.00 5,232,458.56 5,232,458.56
0.00 0.00 0.00 FNMA POOL #452026 0.01 0.00 0.01
13,000,797.07 569,465.14 13,570,262.21 FNMA POOL #484693 12,063,237.44 528,355.45 12,591,592.89
17,585,685.43 11,747,757.56 29,333,442.99 FNMA POOL # 484699 16,316,174.80 10,899,686.94 27,215,861.74
488,885.72 6,275,415.18 6,764,300.90 FNMA POOL #484731 453,593.06 5,822,392.96 6,275,986.02
10,858,004.75 4,451,782.00 15,309,786.75 FNMA POOL #492335 10,070,565.52 4,130,407.86 14,200,973.38
4,600,893.10 0.00 4,600,893.10 FNMA POOL #494724 4,388,448.79 0.00 4,388,448.79
4,174.24 2,145,361.21 2,149,535.45 FNMA POOL #513370 3,983.77 2,046,803.32 2,050,787.09
7,000,000.00 3,370,000.00 10,370,000.00 FIRST CHICAGO CORP 6,982,500.00 3,361,575.00 10,344,075.00
5,000,000.00 2,000,000.00 7,000,000.00 FIRST MD BANCORP 7.20% 4,925,000.00 1,970,000.00 6,895,000.00
9,970,000.00 5,260,000.00 15,230,000.00 FIRST 99 - A A4 9,768,855.25 5,153,879.50 14,922,734.75
7,970,000.00 3,945,000.00 11,915,000.00 FIRST UNION CORP 7,920,187.50 3,920,343.75 11,840,531.25
8,440,000.00 4,375,000.00 12,815,000.00 FIRST UNION CAP 7.95% 8,218,450.00 4,260,156.25 12,478,606.25
3,250,000.00 1,600,000.00 4,850,000.00 FLAGSHIP 99-2 A3 3,242,892.25 1,596,500.80 4,839,393.05
2,750,000.00 2,500,000.00 5,250,000.00 FORD MOTOR CREDIT 2,719,062.50 2,471,875.00 5,190,937.50
7,300,000.00 3,650,000.00 10,950,000.00 FORD MOTOR CREDIT 7,351,676.70 3,672,812.50 11,024,489.20
9,760,000.00 6,090,000.00 15,850,000.00 GEHEL 99-1 A4 6.185% 9,488,135.20 5,920,363.05 15,408,498.25
6,940,350.06 3,589,153.30 10,529,503.36 GECMS99 -1 A1 (6.50%) 6,380,784.34 3,283,691.97 9,664,476.31
17,754,322.18 63,460,682.74 81,215,004.92 GMAC 1997-C1 IO 1,403,834.25 5,017,836.18 6,421,670.43
125,187.52 0.00 125,187.52 GNMA POOL# 0001136 131,798.67 0.00 131,798.67
46,746.64 0.00 46,746.64 GNMA POOL# 0009244 48,090.60 0.00 48,090.60
104,291.81 0.00 104,291.81 GNMA POOL# 0009279 107,290.20 0.00 107,290.20
230,991.48 0.00 230,991.48 GNMA POOL#348665 232,723.91 0.00 232,723.91
0.00 4,286,233.42 4,286,233.42 GNMA 354563 7.50 04/15/23 0.00 4,295,389.93 4,295,389.93
0.00 2,798,530.33 2,798,530.33 GNMA 354563 7.50 04/15/23 0.00 2,688,936.33 2,688,936.33
177,131.24 0.00 177,131.24 GNMA POOL# 371437 174,474.27 0.00 174,474.27
</TABLE>
36
<PAGE> 180
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
80,744.10 0.00 80,744.10 GNMA POOL# 22374 83,014.63 0.00 83,014.63
1,856,989.62 0.00 1,856,989.62 GNMA POOL# 480525 1,816,934.35 0.00 1,816,934.35
3,710,000.00 1,825,000.00 5,535,000.00 GNMA POOL# 481632 3,706,512.60 1,823,284.50 5,529,797.10
0.00 5,600,163.13 5,600,163.13 GNMA I POOL 6.5% 11 15 28 0.00 5,327,746.27 5,327,746.27
8,487,628.31 5,658,418.90 14,146,047.21 GNMA POOL #482829 8,081,749.92 5,383,168.22 13,464,918.14
5,641,258.07 0.00 5,641,258.07 GNMA 483453 5,371,493.11 0.00 5,371,493.11
5,827,433.86 0.00 5,827,433.86 GNMA #483463 5,548,765.97 0.00 5,548,765.97
8,625,877.39 0.00 8,625,877.39 GNMA POOL # 486516 8,213,387.93 0.00 8,213,387.93
0.00 8,539,225.27 8,539,225.27 GNMA 498651 6.5% 04/15/29 0.00 8,130,879.52 8,130,879.52
2,416,694.99 0.00 2,416,694.99 GNMA POOL# 498652 2,301,128.64 0.00 2,301,128.64
2,951,333.67 0.00 2,951,333.67 GNMA POOL#502768 2,948,559.42 0.00 2,948,559.42
2,995,185.19 0.00 2,995,185.19 GNMA POOL# 505842 2,992,369.72 0.00 2,992,369.72
5,027,352.56 0.00 5,027,352.56 GNMA POOL#507382 5,022,626.85 0.00 5,022,626.85
10,064,583.06 0.00 10,064,583.06 GNMA POOL#510422 10,055,122.35 0.00 10,055,122.35
64,004.85 0.00 64,004.85 GNMA POOL# 164775 69,084.91 0.00 69,084.91
11,751.28 0.00 11,751.28 GNMA POOL#303442 12,258.00 0.00 12,258.00
684,404.30 0.00 684,404.30 GNMA POOL# 304732 689,961.67 0.00 689,961.67
99,570.94 0.00 99,570.94 GNMA POOL#306473 103,864.44 0.00 103,864.44
79,997.19 0.00 79,997.19 GNMA POOL# 308571 83,446.67 0.00 83,446.67
18,754.11 0.00 18,754.11 GNMA POOL#310780 19,562.78 0.00 19,562.78
166,156.48 0.00 166,156.48 GNMA POOL#314586 173,321.15 0.00 173,321.15
191,607.90 0.00 191,607.90 GNMA POOL#315728 199,870.03 0.00 199,870.03
101,605.56 0.00 101,605.56 GNMA POOL#319999 105,986.79 0.00 105,986.79
32,435.20 0.00 32,435.20 GNMA POOL#321563 33,833.81 0.00 33,833.81
105,602.00 0.00 105,602.00 GNMA POOL#321786 110,155.56 0.00 110,155.56
9,038.51 0.00 9,038.51 GNMA POOL#325399 9,114.70 0.00 9,114.70
247,670.97 0.00 247,670.97 GNMA POOL# 331869 249,372.47 0.00 249,372.47
140,576.84 0.00 140,576.84 GNMA POOL#332285 146,638.51 0.00 146,638.51
357,421.01 0.00 357,421.01 GNMA POOL# 337049 360,101.67 0.00 360,101.67
233,613.61 0.00 233,613.61 GNMA POOL#337062 235,290.96 0.00 235,290.96
0.00 9,707,967.79 9,707,967.79 GNMA 780213 7.50% 08/15/25 0.00 9,704,861.23 9,704,861.23
4,665,000.00 3,650,000.00 8,315,000.00 GABLES REALTY 4,406,577.66 3,447,804.60 7,854,382.26
2,407,700.58 1,620,400.85 4,028,101.43 FSQ GOVERNMENT MM #465 2,407,700.58 1,620,400.85 4,028,101.43
296,561.22 0.00 296,561.22 TURKEY TRUST 303,612.85 0.00 303,612.85
711,934.04 0.00 711,934.04 TRUST CERTIFICATE 730,622.31 0.00 730,622.31
0.00 1,153,638.65 1,153,638.65 GREEN TREE 7.85% 07/15/09 0.00 1,135,076.60 1,135,076.60
6,880,000.00 3,245,000.00 10,125,000.00 GREENPOINT MAN HOUSING 6,485,260.00 3,058,818.13 9,544,078.13
5,750,000.00 1,850,000.00 7,600,000.00 HSBC HOLDING PLC 5,764,375.00 1,858,249.15 7,622,624.15
2,000,000.00 1,095,000.00 3,095,000.00 HALLIBURTON CO 1,797,500.00 984,131.25 2,781,631.25
</TABLE>
37
<PAGE> 181
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
4,205,051.47 5,153,271.01 9,358,322.48 HOUSING SECURITIES INC 4,239,217.51 5,196,192.21 9,435,409.72
12,810,000.00 7,790,000.00 20,600,000.00 IMCHE 1997-7 A5 12,663,645.75 7,700,999.25 20,364,645.00
1,036,000.00 0.00 1,036,000.00 KNIGHT-RIDDER (8 1/2) 1,047,774.14 0.00 1,047,774.14
1,313,000.00 0.00 1,313,000.00 KRAFT INC 1,354,031.25 0.00 1,354,031.25
7,360,000.00 4,810,000.00 12,170,000.00 LUBRIZOL 6,587,200.00 4,304,950.00 10,892,150.00
2,123,121.35 0.00 2,123,121.35 THE MONEY STORE (M15/M15) 2,121,709.48 0.00 2,121,709.48
0.00 2,800,000.00 2,800,000.00 MONSANTO 5.375% 12/01/01 0.00 2,733,500.00 2,733,500.00
13,000,000.00 6,000,000.00 19,000,000.00 MSC 99-FNV1 A2 (6.53%) 12,323,545.00 5,687,790.00 18,011,335.00
8,395,000.00 4,090,000.00 12,485,000.00 MOTOROLA INC. (7.50%) 8,332,037.50 4,059,325.00 12,391,362.50
9,000,000.00 4,550,000.00 13,550,000.00 NEW CENTURY HOME EQUITY 8,891,325.00 4,495,058.75 13,386,383.75
7,028,847.71 3,469,431.23 10,498,278.94 NEW CENTURY EQUITY TRUST 6,885,424.07 3,398,637.49 10,284,061.56
7,525,000.00 3,645,000.00 11,170,000.00 NEW CENTY HOME EQUITY LN 7,499,136.58 3,632,472.14 11,131,608.72
2,997,106.01 6,418,327.59 9,415,433.60 PNC 98-7 A5 2,803,268.18 6,003,222.24 8,806,490.42
7,292,343.34 4,466,560.41 11,758,903.75 PALS 99 - 1 A1 (6.30%) 7,071,297.83 4,331,170.03 11,402,467.86
6,680,000.00 2,665,000.00 9,345,000.00 PENTAIR INC SR NT 6,604,850.00 2,635,018.75 9,239,868.75
10,000,000.00 0.00 10,000,000.00 PRIME PROPERTY FNDG 144A 9,864,960.00 0.00 9,864,960.00
1,500,000.00 0.00 1,500,000.00 PRUDENTIAL HOME MTG (CMO) 1,440,525.00 0.00 1,440,525.00
10,090,000.00 4,960,000.00 15,050,000.00 PSSF 1998-C1 A1A3 9,562,847.95 4,700,864.80 14,263,712.75
7,460,000.00 3,640,000.00 11,100,000.00 PSSF 1999-NRF1 A2 7,063,016.10 3,446,297.40 10,509,313.50
2,110,637.12 0.00 2,110,637.12 RESIDENT'L FUND (M25/M25) 2,114,837.28 0.00 2,114,837.28
6,170,000.00 3,750,000.00 9,920,000.00 RESIDENTIAL FDG MTG 5,669,824.63 3,446,003.63 9,115,828.26
16,797,275.30 10,308,797.15 27,106,072.45 RALI SER 1999 - QS3 CL A8 15,466,511.17 9,492,082.70 24,958,593.87
13,684,000.00 0.00 13,684,000.00 RESIDENTIAL ACCREDIT LOAN 12,838,397.22 0.00 12,838,397.22
5,240,000.00 2,300,000.00 7,540,000.00 RESIDENTIAL ASSET SEC 5,229,085.08 2,295,209.10 7,524,294.18
16,730,000.00 8,010,000.00 24,740,000.00 SAXON ASSET SEC TRUST 16,750,912.50 8,020,012.50 24,770,925.00
7,303,000.00 3,460,000.00 10,763,000.00 SAXON ASSET SEC TRUST 7,264,206.46 3,441,620.48 10,705,826.94
21,331,181.00 0.00 21,331,181.00 SECURITIZED ASSET (CMO) 20,452,869.63 0.00 20,452,869.63
500,000.00 0.00 500,000.00 SALLIE MAE MTN 517,070.00 0.00 517,070.00
7,000,000.00 4,000,000.00 11,000,000.00 SUSA PARTNERSHIP 6,352,500.00 3,630,000.00 9,982,500.00
8,650,000.00 4,225,000.00 12,875,000.00 VENDE 99 - 3 1D 8,095,699.35 3,954,257.78 12,049,957.13
36,570,000.00 13,140,000.00 49,710,000.00 U.S. TREASURY BOND 35,381,840.70 12,713,081.40 48,094,922.10
19,698,630.00 9,340,110.00 29,038,740.00 U.S. TREASURY NOTE (TIPS) 18,038,232.48 8,552,832.13 26,591,064.61
9,630,000.00 955,000.00 10,585,000.00 U.S. TREASURY NOTE 9,538,707.60 945,946.60 10,484,654.20
15,201,150.00 5,118,420.00 20,319,570.00 U.S. TREASURY TIP 14,892,566.66 5,014,516.07 19,907,082.73
2,880,000.00 0.00 2,880,000.00 U.S. TREASURY NOTE 2,919,340.80 0.00 2,919,340.80
6,755,000.00 0.00 6,755,000.00 U.S. TREASURY NOTE 6,787,086.25 0.00 6,787,086.25
6,610,000.00 3,135,000.00 9,745,000.00 VANDERBILT MTG FIN 6,605,181.31 3,132,714.59 9,737,895.90
13,910,000.00 6,600,000.00 20,510,000.00 WORTHINGTON INDUSTRIES 13,510,087.50 6,410,250.00 19,920,337.50
0.00 10,729,000.00 10,729,000.00 FEDERAL SIGNAL CORP. 5.88% 0.00 10,729,000.00 10,729,000.00
0.00 10,000,000.00 10,000,000.00 MERRILL CO. 6.02% 0.00 10,000,000.00 10,000,000.00
0.00 6,756,000.00 6,756,000.00 LEHMAN TRIPARTY 5.83% 0.00 6,756,000.00 6,756,000.00
</TABLE>
38
<PAGE> 182
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
737,611,731.88 445,673,987.90 1,183,105,719.28 696,413,830.90 374,185,802.46 1,070,588,633.36
</TABLE>
39
<PAGE> 183
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Limited
Parkstone Armada Maturity Bond
Limited Limited Fund
Maturity Bond Maturity Bond Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 127,265 80,844 208,109
------- ------ -------
ASSETS
Cash 0 194 194
Accrued Income 1,679 835 2,514
Investment Securities Sold 0 0 0
Cap Shares Sold 1 0 1
Other Assets 8 37 45
TOTAL ASSETS: 128,953 81,910 210,863
------- ------ -------
LIABILITIES
Income Payable 612 391 1,003
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 232 103 335
Accrued Expense Payable 115 0 115
Other Payables 2,572 0 2,572
TOTAL LIABILITIES: 3,531 494 4,025
------- ------ -------
TOTAL NET ASSETS: 125,422 81,416 206,838
</TABLE>
40
<PAGE> 184
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Limited
Parkstone Armada Maturity Bond
Limited Limited Fund
Maturity Bond Maturity Bond ProForma ProForma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 4,423 2,425 0 6,848
----- ----- ------- -----
TOTAL INCOME: 4,423 2,425 0 6,848
----- ----- ------- -----
EXPENSES:
Administrator Fees 164 28 (47) A 145
Investment Advisory Fees 440 179 - 619
Waiver of Investment Advisory Fees (99) (40) - (139)
Transfer Agent Fees 37 18 - 55
Custodian Fees 12 8 - 20
Professional Fees (Audit + Legal) 8 4 (4) A 8
Trustee (Directors) Fees 1 1 - 2
Registration Fees 12 3 - 15
12b-1 Fees 28 0 6 A 34
Shareholder Servicing Fees 0 2 7 A 9
Printing Expenses 9 2 - 11
Miscellaneous Expenses 2 1 - 3
TOTAL EXPENSES: (614) (206) (38) (782)
----- ----- ------- -----
NET INVESTMENT INCOME: 3,809 2,219 (38) 6,066
----- ----- ------- -----
Net Realized Gains (Losses) on Investments (693) (352) 0 (1,045)
Net Unrealized Appreciation (Depreciation)
of Investment Securities (533) (310) 0 (843)
----- ----- ------- -----
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (1,226) (662) 0 (1,888)
----- ----- ------- -----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 2,583 1,557 (38) 4,178
----- ----- ------- -----
A-To adjust fees to reflect Armada's fee structure
</TABLE>
41
<PAGE> 185
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Limited
Parkstone Armada Maturity Bond
Limited Limited Fund
Maturity Bond Maturity Bond Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 3,809 2,219 6,028
Net Realized Gain (Loss) on Securities Sold (693) (352) (1,045)
Net Increase (Decrease) in Unrealized
Appreciation of Assets (533) (310) (843)
------- ------ -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 2,583 1,557 4,140
------- ------ -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (3,284) (2,197) (5,481)
Investor A/Class A Shares (506) (15) (521)
Investor B/Class B Shares (20) - (20)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (3,810) (2,212) (6,022)
------- ------ -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 7,939 39,968 47,907
Shares Issued in Lieu of Cash Distributions 1,012 1,106 2,118
Shares Redeemed (19,778) (31,967) (51,745)
Net Institutional/Class I Share Transactions (10,827) 9,107 (1,720)
------- ------ -------
Investor A/Class A Shares
Shares Issued 468 236 704
Shares Issued in Lieu of Cash Distributions 510 14 524
Shares Redeemed (11,731) (267) (11,998)
Net Investor A/Class A Share Transactions (10,753) (17) (10,770)
------- ------ -------
Investor B/Class B Shares
Shares Issued 71 140 211
Shares Issued in Lieu of Cash Distributions 15 1 16
Shares Redeemed (66) (1) (67)
Net Investor B/Class B Share Transactions 20 140 160
------- ------ -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (21,560) 9,230 (12,330)
------- ------ -------
BEGINNING OF PERIOD: 148,209 72,841 221,050
------- ------ -------
END OF PERIOD: 125,422 81,416 206,838
------- ------ -------
</TABLE>
42
<PAGE> 186
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA ENHANCED INCOME/
PARKSTONE LIMITED MATURITY BOND
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
915,000.00 0.00 915,000.00 AESOP FUNDING 1997-1-A1 906,124.50 0.00 906,124.50
0.00 4,554,429.27 4,554,429.27 AMRESCO SN 7.545 09/26/27 0.00 4,520,981.54 4,520,981.54
1,410,000.00 0.00 1,410,000.00 WOLS 1998-1-A3 1,398,543.75 0.00 1,398,543.75
1,335,000.00 2,100,000.00 3,435,000.00 BOMBARDIER CAP MTG SEC 1,336,635.38 2,102,572.50 3,439,207.88
1,700,000.00 3,300,000.00 5,000,000.00 BROWNING FERRIS (6.08%) 1,695,750.00 3,289,044.00 4,984,794.00
1,100,000.00 0.00 1,100,000.00 CSC ENTERPRISES 6.5% 144A 1,095,747.40 0.00 1,095,747.40
588,862.15 1,307,816.74 1,896,678.89 RAST 97-A1-A1 586,742.24 1,305,037.63 1,891,779.87
2,910,000.00 0.00 2,910,000.00 COUNTRYWIDE HOME LOANS 2,902,783.20 0.00 2,902,783.20
2,855,000.00 0.00 2,855,000.00 CAPITA EQUIP. RECEIVABLES 2,836,057.08 0.00 2,836,057.08
1,000,000.00 4,000,000.00 5,000,000.00 CASE CREDIT 6.12% 988,750.00 3,955,000.00 4,943,750.00
6,000,000.00 15,000,000.00 21,000,000.00 CHAMPION HOME EQUITY IO 786,408.00 1,966,020.00 2,752,428.00
1,500,000.00 1,500,000.00 3,000,000.00 CHAMPION INTL 1,550,625.00 1,550,625.00 3,101,250.00
1,260,000.00 0.00 1,260,000.00 CITIBANK CREDIT TR 96-1 A 1,166,300.10 0.00 1,166,300.10
1,235,000.00 2,600,000.00 3,835,000.00 COMDISCO INC 1,194,862.50 2,515,403.80 3,710,266.30
1,025,000.00 2,975,000.00 4,000,000.00 COMPUTER ASSOCIATES INTL 989,125.00 2,870,875.00 3,860,000.00
2,490,000.00 5,000,000.00 7,490,000.00 COPEL 1997-A A4 2,466,394.80 4,952,600.00 7,418,994.80
1,800,000.00 1,500,000.00 3,300,000.00 DIAL CORP DEL NOTE 6.625% 1,761,750.00 1,468,125.00 3,229,875.00
0.00 2,000,000.00 2,000,000.00 DILLARDS 9.50% 10/15/01 0.00 2,070,000.00 2,070,000.00
1,060,000.00 0.00 1,060,000.00 DISCOVER MASTER TR 98-4A 1,029,578.00 0.00 1,029,578.00
1,500,000.00 2,500,000.00 4,000,000.00 EMPIRE FUNDING 99-1 A3 1,463,203.50 2,438,672.50 3,901,876.00
1,395,000.00 0.00 1,395,000.00 EVANS WITHYCOMBE 144A 1,434,659.85 0.00 1,434,659.85
3,000,000.00 0.00 3,000,000.00 FHLMC MORT 2,987,280.00 0.00 2,987,280.00
1,007,969.41 3,359,897.97 4,367,867.38 FNMA SERIES 1997-26 CL E 997,274.85 3,324,249.45 4,321,524.30
1,394,289.14 0.00 1,394,289.14 FNMA #426798 1,413,908.24 0.00 1,413,908.24
680,471.06 0.00 680,471.06 FIDELITY DOMESTIC MM #690 680,471.06 0.00 680,471.06
900,000.00 3,600,000.00 4,500,000.00 FIRST CHICAGO 10.25% 940,500.00 3,766,500.00 4,707,000.00
1,400,000.00 0.00 1,400,000.00 FIRST UNION CORPORATION 1,439,832.80 0.00 1,439,832.80
</TABLE>
43
<PAGE> 187
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
3,000,000.00 6,000,000.00 9,000,000.00 FLAGSHIP 99-2 A3 2,993,439.00 5,986,878.00 8,980,317.00
1,000,000.00 0.00 1,000,000.00 FORD MOTOR CDT GLOBAL 991,250.00 0.00 991,250.00
1,810,000.00 5,000,000.00 6,810,000.00 FRANCHISE FIN CORP 1,800,298.40 4,974,100.00 6,774,398.40
1,400,000.00 2,600,000.00 4,000,000.00 GENERAL AMERICAN TRANS 1,487,500.00 2,756,816.40 4,244,316.40
0.00 597,693.33 597,693.33 GREEN TREE 7.85 07/15/09 0.00 588,076.44 588,076.44
50,000,000.00 0.00 50,000,000.00 GREEN TREE 99-D A7 IO 4,192,700.00 0.00 4,192,700.00
0.00 2,000,649.18 2,000,649.18 GREEN TREE 6.55 07/15/28 0.00 2,008,731.80 2,008,731.80
1,250,000.00 0.00 1,250,000.00 HARTI 1998-1 A3 1,239,712.50 0.00 1,239,712.50
1,750,000.00 2,250,000.00 4,000,000.00 JB HUNT TRANSPORT 1,730,312.50 2,224,687.50 3,955,000.00
0.00 4,700,000.00 4,700,000.00 INGERSOLL 6.34 12/03/01 0.00 4,653,000.00 4,653,000.00
0.00 5,000,000.00 5,000,000.00 BELGIUM RAIL 8.25 02/02/0 0.00 5,014,500.00 5,014,500.00
0.00 3,000,000.00 3,000,000.00 US WEST 6.125 11/21/00 0.00 2,985,000.00 2,985,000.00
0.00 5,000,000.00 5,000,000.00 NATL POWER 7.125 07/11/01 0.00 4,984,825.00 4,984,825.00
0.00 5,000,000.00 5,000,000.00 LEHMAN HLDS 6.89 10/10/00 0.00 5,022,300.00 5,022,300.00
1,121,567.03 2,091,029.61 3,212,596.64 MERRILL 1996-C1 A1 1,120,226.76 2,083,480.99 3,203,707.75
20,534.21 0.00 20,534.21 GOLDEN NATIONAL MTGE 20,490.78 0.00 20,490.78
910,000.00 0.00 910,000.00 METLIFE CAP 97-A-A 6.85% 907,725.00 0.00 907,725.00
600,000.00 0.00 600,000.00 MONSANTO 7.09 12/15/00 601,425.00 0.00 601,425.00
1,500,000.00 3,000,000.00 4,500,000.00 NEW CENTURY HOME EQUITY 1,481,887.50 2,963,775.00 4,445,662.50
2,000,000.00 4,989,000.00 6,989,000.00 OAKWOOD MTG INVESTORS 1,992,080.00 4,969,243.56 6,961,323.56
915,000.00 0.00 915,000.00 PNC STUDENT LOAN TRUST I 913,915.73 0.00 913,915.73
1,378,054.39 2,734,628.83 4,112,683.22 PALS 99 - 1 A1 (6.30%) 1,336,282.81 2,651,736.76 3,988,019.57
1,000,000.00 125,000.00 1,125,000.00 PRIME PROPERTY FNDG 144A 986,496.00 120,312.50 1,106,808.50
840,000.00 920,000.00 1,760,000.00 PRIME PROP II (144A) 821,264.64 899,480.32 1,720,744.96
1,100,000.00 0.00 1,100,000.00 RAYTHEON (5.95%) 1,083,500.00 0.00 1,083,500.00
0.00 4,150,000.00 4,150,000.00 SAXON 7.375 11/25/23 0.00 4,153,921.75 4,153,921.75
790,000.00 0.00 790,000.00 SEARS MASTER TRUST 1996-4 785,410.10 0.00 785,410.10
258,370.62 0.00 258,370.62 SBA POOL #503115 (M1/M1) 273,568.67 0.00 273,568.67
1,300,000.00 2,700,000.00 4,000,000.00 LIMITED INC. (Q23/Q23) 1,296,750.00 2,693,250.00 3,990,000.00
1,500,000.00 3,100,000.00 4,600,000.00 VENDEE 99-2 IJ 1,463,842.50 3,025,274.50 4,489,117.00
4,000,000.00 9,000,000.00 13,000,000.00 U.S. TREASURY NOTE 3,951,120.00 8,895,870.00 12,846,990.00
5,200,000.00 2,500,000.00 7,700,000.00 U.S. TREASURY NOTE 5,222,828.00 2,511,875.00 7,734,703.00
2,750,000.00 6,000,000.00 8,750,000.00 WFS 1999-A A4 2,686,502.50 5,857,500.00 8,544,002.50
1,000,000.00 0.00 1,000,000.00 WEINGARTEN REALTY 6.00% 988,750.00 0.00 988,750.00
588,948.34 0.00 588,948.34 WORLD OMNI AUTO LEASE 97A 594,313.66 0.00 594,313.66
0.00 572,698.03 572,698.03 GOLDMAN SACHS PREM SQ 0.00 572,698.03 572,698.03
</TABLE>
44
<PAGE> 188
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1,850,000.00 0.00 1,850,000.00 HYDRO-QUEBEC FRN(S28/M28) 1,831,500.00 0.00 1,831,500.00
0.00 2,572,000.00 2,572,000.00 BEAR STEARNS 0.00 2,572,000.00 2,572,000.00
132,294,066.35 140,899,842.96 273,193,709.31 80,844,399.30 127,265,039.97 208,109,439.27
</TABLE>
45
<PAGE> 189
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
Parkstone Armada
Intermediate Intermediate
Government Armada Bond Fund
Obligations Intermediate Pro Forma
Fund Bond Fund Combined
TOTAL INVESTMENTS: 146,990 302,593 449,583
------- ------- -------
ASSETS
Cash 0 1,081 1,081
Accrued Income 1,504 3,339 4,843
Investment Securities Sold 15 140 155
Cap Shares Sold 0 0 0
Other Assets 10 27 37
TOTAL ASSETS: 148,519 307,180 455,699
------- ------- -------
LIABILITIES
Income Payable 529 1,517 2,046
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 13 0 13
Accrued Expense Payable 120 232 352
Other Payables 36,656 0 36,656
TOTAL LIABILITIES: 37,318 1,749 39,067
------- ------- -------
TOTAL NET ASSETS: 111,201 305,431 416,632
46
<PAGE> 190
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Parkstone Armada
Intermediate Intermediate
Government Armada Bond Fund
Obligations Intermediate ProForma ProForma
Fund Bond Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 4,108 10,055 0 14,163
----- ----- ------- -----
TOTAL INCOME: 4,108 10,055 0 14,163
----- ----- ------- -----
EXPENSES:
Administrator Fees 161 109 (48) A 222
Investment Advisory Fees 443 860 - 1,303
Waiver of Investment Advisory Fees (29) (234) - (263)
Transfer Agent Fees 40 43 - 83
Custodian Fees 12 31 - 37
Professional Fees (Audit + Legal) 9 12 (6) A 21
Trustee (Directors) Fees 1 4 - 5
Registration Fees 12 5 - 17
12b-1 Fees 16 65 13 A 94
Shareholder Servicing Fees 0 7 10 A 17
Printing Expenses 9 11 - 20
Miscellaneous Expenses 1 5 - 6
TOTAL EXPENSES: (675) (918) (31) (1,562)
----- ----- ------- -----
NET INVESTMENT INCOME: 3,433 9,137 (31) 12,601
----- ----- ------- -----
Net Realized Gains (Losses) on Investments (1,049) (4,903) 0 (5,952)
Net Unrealized Appreciation (Depreciation)
of Investment Securities (1,011) (348) 0 (1,359)
----- ----- ------- -----
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (2,060) (5,251) 0 (7,311)
----- ----- ------- -----
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,373 3,886 (31) 5,290
----- ----- ------- -----
A-To adjust fees to reflect Armada's fee structure
</TABLE>
47
<PAGE> 191
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Parkstone Armada
Intermediate Intermediate
Government Armada Bond Fund
Obligations Intermediate Pro Forma
Fund Bond Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 3,433 9,137 12,570
Net Realized Gain (Loss) on Securities Sold (1,049) (4,903) (5,952)
Net Increase (Decrease) in Unrealized
Appreciation of Assets (1,011) (348) (1,359)
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 1,373 3,886 5,259
------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (3,186) (9,022) (12,208)
Investor A/Class A Shares (223) (152) (375)
Investor B/Class B Shares (24) (15) (39)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (3,433) (9,189) (12,622)
------- ------- -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 1,929 43,852 45,781
Shares Issued in Lieu of Cash Distributions 837 2,658 3,495
Shares Redeemed (31,820) (54,753) (86,573)
Net Institutional/Class I Share Transactions (29,054) (8,243) (37,297)
------- ------- -------
Investor A/Class A Shares
Shares Issued 291 1,486 1,777
Shares Issued in Lieu of Cash Distributions 156 111 267
Shares Redeemed (2,868) (1,749) (4,617)
Net Investor A/Class A Share Transactions (2,421) (152) (2,573)
------- ------- -------
Investor B/Class B Shares
Shares Issued 19 143 162
Shares Issued in Lieu of Cash Distributions 23 13 36
Shares Redeemed (483) (233) (716)
Net Investor B/Class B Share Transactions (441) (77) (518)
------- ------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (31,916) (8,472) (40,388)
------- ------- -------
BEGINNING OF PERIOD: 145,177 319,206 464,383
------- ------- -------
END OF PERIOD: 111,201 305,431 416,632
------- ------- -------
</TABLE>
48
<PAGE> 192
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA INTERMEDIATE BOND/
PARKSTONE INTERMEDIATE GOVERNMENT OBLIGATIONS
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
4,085,000.00 0.00 4,085,000.00 AT&T CORP 3,901,175.00 0.00 3,901,175.00
500,000.00 0.00 500,000.00 AMGEN MTN 473,125.00 0.00 473,125.00
3,578,952.44 0.00 3,578,952.44 AMRES 99 1 NIM 3,498,426.01 0.00 3,498,426.01
4,965,000.00 0.00 4,965,000.00 ARMSTRONG WORLD 6.35% 4,816,050.00 0.00 4,816,050.00
4,000,000.00 0.00 4,000,000.00 BOMBARDIER CAP MTG SEC 4,004,900.00 0.00 4,004,900.00
1,200,000.00 0.00 1,200,000.00 BRADLEY OPER LTD PRTNSHP 1,141,468.80 0.00 1,141,468.80
3,150,000.00 0.00 3,150,000.00 BRUNSWICK CORP 6.75% 2,984,625.00 0.00 2,984,625.00
7,950,000.00 0.00 7,950,000.00 CELT 1998-C A4 7,750,494.75 0.00 7,750,494.75
3,200,000.00 0.00 3,200,000.00 COMDISCO INC 3,108,000.00 0.00 3,108,000.00
2,000,000.00 0.00 2,000,000.00 COMMERCIAL NET 1,962,500.00 0.00 1,962,500.00
5,970,000.00 0.00 5,970,000.00 COMPUTER ASSOCIATES INTL 5,761,050.00 0.00 5,761,050.00
3,575,000.00 0.00 3,575,000.00 CONTIMORTGAGE 1998-2 A6 3,455,469.88 0.00 3,455,469.88
4,550,000.00 0.00 4,550,000.00 CONHE 1993-3 CLA5 4,488,870.75 0.00 4,488,870.75
3,000,000.00 0.00 3,000,000.00 FIRST BOSTON MTG SECS 2,949,840.00 0.00 2,949,840.00
2,100,000.00 0.00 2,100,000.00 CUMMINS ENGINE, (6.45%) 1,984,500.00 0.00 1,984,500.00
3,190,000.00 0.00 3,190,000.00 EOP OPERATING LP 3,014,550.00 0.00 3,014,550.00
3,670,000.00 0.00 3,670,000.00 EXCEL REALTY TR INC 3,592,012.50 0.00 3,592,012.50
0.00 631,806.59 631,806.59 FHLMC 555138 8.75 4/01/17 0.00 661,817.40 661,817.40
500,000.00 0.00 500,000.00 FHLB SERIES EG03 (6.565) 497,535.00 0.00 497,535.00
0.00 5,000,000.00 5,000,000.00 FHLB 5.53 01/15/03 0.00 4,871,550.00 4,871,550.00
1,000,000.00 0.00 1,000,000.00 FHLB 979,810.00 0.00 979,810.00
0.00 10,000,000.00 10,000,000.00 FHLB 5.625 03/19/01 0.00 9,930,600.00 9,930,600.00
95,000.00 0.00 95,000.00 FHLB SERIES BS01 (5.86) 94,055.70 0.00 94,055.70
2,970,000.00 0.00 2,970,000.00 FSPC T-8 A5 2,956,694.40 0.00 2,956,694.40
17,324.93 0.00 17,324.93 FHLMC POOL 16-0015 (8.25) 18,104.55 0.00 18,104.55
0.00 384,444.23 384,444.23 FHLMC 141183 8.0 05/01/17 0.00 394,293.69 394,293.69
0.00 5,000,000.00 5,000,000.00 FHLMC 7.44 09/20/06 0.00 4,991,250.00 4,991,250.00
</TABLE>
49
<PAGE> 193
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 7,000,000.00 7,000,000.00 FNMA 94-93PH 7.5 08/25/22 0.00 7,115,080.00 7,115,080.00
0.00 10,000,000.00 10,000,000.00 FNMA 5.625 03/15/01 0.00 9,932,400.00 9,932,400.00
4,460,000.00 0.00 4,460,000.00 FANNIE MAE 4,296,050.40 0.00 4,296,050.40
0.00 14,219,000.00 14,219,000.00 FNMA CORP 6.375 06/15/09 0.00 13,799,255.12 13,799,255.12
2,000,000.00 0.00 2,000,000.00 FNMA 6.25% 11/15/02 1,991,940.00 0.00 1,991,940.00
0.00 5,000,000.00 5,000,000.00 FNMA 6.25 11/15/02 0.00 4,979,850.00 4,979,850.00
0.00 473,289.92 473,289.92 FNMA 20252 8.75 08/01/09 0.00 491,629.90 491,629.90
0.00 1,017,039.04 1,017,039.04 FNMA 62226 9.00 01/01/10 0.00 1,064,392.38 1,064,392.38
0.00 834,645.17 834,645.17 FNMA 084251 9.00 08/01/09 0.00 873,506.25 873,506.25
0.00 1,772,720.12 1,772,720.12 FNMA 100044 13.0 08/15/15 0.00 2,007,605.54 2,007,605.54
1,000,000.00 0.00 1,000,000.00 FANNIE MAE MTN 996,930.00 0.00 996,930.00
0.00 821,960.52 821,960.52 FNMA 124439 8.25 07/01/17 0.00 840,709.44 840,709.44
0.00 898,145.10 898,145.10 FNMA 303545 8.50 02/01/25 0.00 926,212.13 926,212.13
0.00 627,651.25 627,651.25 FNMA 313025 11.5 05/01/10 0.00 676,093.37 676,093.37
2,552,950.56 0.00 2,552,950.56 FNMA POOL #412232 2,442,050.39 0.00 2,442,050.39
0.00 946,167.74 946,167.74 FNMA 417392 6.5% 02/01/28 0.00 902,700.79 902,700.79
0.00 1,472,933.51 1,472,933.51 FNMA 485269 6.0% 02/01/29 0.00 1,366,602.44 1,366,602.44
6,860,590.47 0.00 6,860,590.47 FNMA POOL #493767 6,713,176.48 0.00 6,713,176.48
1,550,000.00 0.00 1,550,000.00 FEDERAL RLTY INVS TR 1,418,730.50 0.00 1,418,730.50
2,394,989.30 0.00 2,394,989.30 FIDELITY DOMESTIC MM #690 2,394,989.30 0.00 2,394,989.30
2,500,000.00 0.00 2,500,000.00 FIRST MD BANCORP 7.20% 2,462,500.00 0.00 2,462,500.00
3,375,000.00 0.00 3,375,000.00 FIRST UNION CORP 3,353,906.25 0.00 3,353,906.25
2,550,000.00 0.00 2,550,000.00 FORD MOTOR CREDIT 2,521,312.50 0.00 2,521,312.50
3,033,924.46 0.00 3,033,924.46 GECMS99 -1 A1 (6.50%) 2,789,314.30 0.00 2,789,314.30
0.00 32,690.16 32,690.16 GNMA2 1002 9.5 06/20/18 0.00 34,488.12 34,488.12
0.00 58,024.61 58,024.61 GNMA2 1399 9.5 05/20/20 0.00 61,215.96 61,215.96
0.00 26,763.42 26,763.42 GNMA2 21561 9.5 02/20/21 0.00 28,235.41 28,235.41
0.00 1,988,159.81 1,988,159.81 GNMA2 2780 6.00 07/20/29 0.00 1,825,369.28 1,825,369.28
0.00 1,432,149.37 1,432,149.37 GNMA 446666 7.0% 08/15/28 0.00 1,400,369.98 1,400,369.98
0.00 5,969,860.92 5,969,860.92 GNMA 6.5 470238 04/15/29 0.00 5,684,382.17 5,684,382.17
5,941,074.30 0.00 5,941,074.30 GNMA POOL#472969 5,656,972.13 0.00 5,656,972.13
31,742.97 0.00 31,742.97 GNMA POOL#154047 33,706.91 0.00 33,706.91
5,025,000.00 0.00 5,025,000.00 GABLES REALTY 4,746,635.10 0.00 4,746,635.10
0.00 37,392.71 37,392.71 GNMA 4029 9.00 09/15/04 0.00 39,343.86 39,343.86
0.00 29,872.24 29,872.24 GNMA 4265 9.00 10/15/04 0.00 31,430.97 31,430.97
0.00 25,105.63 25,105.63 GNMA 4309 9.00 12/15/04 0.00 26,415.64 26,415.64
0.00 5,451.98 5,451.98 GNMA 4610 9.00 01/15/05 0.00 5,736.46 5,736.46
</TABLE>
50
<PAGE> 194
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 34,218.12 34,218.12 GNMA 4790 9.00 12/15/04 0.00 36,003.62 36,003.62
0.00 17,626.33 17,626.33 GNMA 4820 9.00 01/15/05 0.00 18,546.07 18,546.07
0.00 10,795.11 10,795.11 GNMA 4921 9.00 01/15/05 0.00 11,358.40 11,358.40
0.00 4,221.69 4,221.69 GNMA 4961 9.00 01/15/05 0.00 4,441.98 4,441.98
0.00 32,881.09 32,881.09 GNMA 4991 9.00 12/15/04 0.00 34,596.83 34,596.83
0.00 29,194.99 29,194.99 GNMA 8328 9.00 04/15/05 0.00 30,718.38 30,718.38
0.00 97,283.70 97,283.70 GNMA 23554 9.00 10/15/08 0.00 102,359.96 102,359.96
0.00 43,576.06 43,576.06 GNMA 24863 9.00 09/15/08 0.00 45,849.86 45,849.86
0.00 82,967.71 82,967.71 GNMA 25395 9.00 09/15/08 0.00 87,296.97 87,296.97
0.00 13,438.15 13,438.15 GNMA 25407 9.00 09/15/08 0.00 14,139.35 14,139.35
0.00 15,970.79 15,970.79 GNMA 26836 9.00 10/15/08 0.00 16,804.15 16,804.15
0.00 76,831.55 76,831.55 GNMA 27002 9.00 11/15/08 0.00 80,840.62 80,840.62
0.00 62,316.59 62,316.59 GNMA 27022 9.00 04/15/09 0.00 65,568.27 65,568.27
0.00 47,704.34 47,704.34 GNMA 27253 9.00 02/15/09 0.00 50,193.55 50,193.55
0.00 9,010.13 9,010.13 GNMA 27716 9.00 10/15/08 0.00 9,480.28 9,480.28
0.00 77,734.64 77,734.64 GNMA 28156 9.00 12/15/08 0.00 81,790.83 81,790.83
0.00 69,371.91 69,371.91 GNMA 29022 9.00 12/15/08 0.00 72,991.74 72,991.74
0.00 81,005.65 81,005.65 GNMA 29381 9.00 02/15/09 0.00 85,232.52 85,232.52
0.00 14,116.65 14,116.65 GNMA 29414 9.00 05/15/09 0.00 14,853.26 14,853.26
0.00 11,234.97 11,234.97 GNMA 29539 9.00 05/15/09 0.00 11,821.21 11,821.21
0.00 9,217.46 9,217.46 GNMA 29644 9.00 03/15/09 0.00 9,698.43 9,698.43
0.00 44,066.33 44,066.33 GNMA 30185 9.00 05/15/09 0.00 46,365.71 46,365.71
0.00 29,557.02 29,557.02 GNMA 31183 9.00 04/15/09 0.00 31,099.31 31,099.31
0.00 52,013.14 52,013.14 GNMA 31362 9.00 04/15/09 0.00 54,727.19 54,727.19
0.00 106,532.65 106,532.65 GNMA 32386 9.00 04/15/09 0.00 112,091.52 112,091.52
0.00 154,877.28 154,877.28 GNMA 32989 9.00 05/15/09 0.00 162,958.78 162,958.78
0.00 35,627.65 35,627.65 GNMA 33963 9.00 07/15/09 0.00 37,486.70 37,486.70
0.00 131,397.51 131,397.51 GNMA 34103 9.00 05/15/09 0.00 138,253.83 138,253.83
0.00 20,226.06 20,226.06 GNMA 38055 9.00 05/15/09 0.00 21,281.46 21,281.46
0.00 40,552.69 40,552.69 GNMA 45022 9.00 04/15/09 0.00 42,668.73 42,668.73
0.00 13,075.10 13,075.10 GNMA2 73 9.5 08/20/22 0.00 13,794.23 13,794.23
0.00 9,861.40 9,861.40 GNMA2 245600 9.5 12 20 15 0.00 10,403.78 10,403.78
0.00 80,189.55 80,189.55 GNMA2 2590 9.5 07/20/16 0.00 84,599.98 84,599.98
0.00 44,500.67 44,500.67 GNMA2 002626 9.5 09/20/16 0.00 46,948.21 46,948.21
0.00 43,575.84 43,575.84 GNMA2 2661 9.5 11/20/16 0.00 45,972.51 45,972.51
0.00 29,140.31 29,140.31 GNMA2 2732 9.5 03/20/17 0.00 30,743.03 30,743.03
0.00 283,420.25 283,420.25 GNMA2 836 9.5 09/20/17 0.00 299,008.36 299,008.36
</TABLE>
51
<PAGE> 195
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 90,292.89 90,292.89 GNMA2 988 9.5 12/20/22 0.00 95,259.00 95,259.00
0.00 8,762.33 8,762.33 GNMA2 001038 9.5 08/20/18 0.00 9,244.26 9,244.26
0.00 35,262.74 35,262.74 GNMA2 1236 9.5 08/20/19 0.00 37,202.19 37,202.19
0.00 50,493.57 50,493.57 GNMA2 1273 9.5 10/20/19 0.00 53,270.72 53,270.72
0.00 139,639.62 139,639.62 GNMA2 001309 9.5 12/20/19 0.00 147,319.80 147,319.80
0.00 21,794.47 21,794.47 GNMA2 1327 9.5 01/20/20 0.00 22,993.17 22,993.17
0.00 25,336.01 25,336.01 GNMA2 1471 9.5 09/20/20 0.00 26,729.49 26,729.49
0.00 56,437.06 56,437.06 GNMA2 21507 9.5 11/20/20 0.00 59,541.10 59,541.10
0.00 33,178.25 33,178.25 GNMA2 1525 9.5 12/20/20 0.00 35,003.05 35,003.05
0.00 34,693.70 34,693.70 GNMA2 1651 9.5 07/20/21 0.00 36,601.85 36,601.85
0.00 38,945.02 38,945.02 GNMA2 1669 9.5 08/20/21 0.00 41,087.00 41,087.00
0.00 49,261.86 49,261.86 GNMA2 21705 9.5 10/20/21 0.00 51,971.26 51,971.26
0.00 124,452.59 124,452.59 GNMA2 119221 9.5 12/20/13 0.00 131,297.48 131,297.48
0.00 49,981.11 49,981.11 GNMA2 121161 9.5 10/20/14 0.00 52,730.07 52,730.07
0.00 170,564.17 170,564.17 GNMA2 149718 9.5 04/20/16 0.00 179,945.20 179,945.20
0.00 114,803.06 114,803.06 GNMA2 149729 9.5 03/20/16 0.00 121,117.23 121,117.23
0.00 57,045.23 57,045.23 GNMA2 150634 9.5 02/20/16 0.00 60,182.72 60,182.72
0.00 42,596.16 42,596.16 GNMA2 152042 9.5 04/20/16 0.00 44,938.95 44,938.95
0.00 78,310.91 78,310.91 GNMA2 158468 9.5 05/20/16 0.00 82,618.01 82,618.01
0.00 8,302.21 8,302.21 GNMA2 160304 9.5 05/20/16 0.00 8,758.83 8,758.83
0.00 102,894.46 102,894.46 GNMA2 166048 9.5 06/20/16 0.00 108,553.66 108,553.66
0.00 67,629.30 67,629.30 GNMA2 170929 9.5 09/20/16 0.00 71,348.91 71,348.91
0.00 87,386.79 87,386.79 GNMA2 217671 9.5 02/20/18 0.00 92,193.06 92,193.06
0.00 27,578.66 27,578.66 GNMA2 246100 9.5 06/20/18 0.00 29,095.49 29,095.49
0.00 38,138.88 38,138.88 GNMA2 250860 9.5 06/20/18 0.00 40,236.52 40,236.52
0.00 133,404.71 133,404.71 GNMA2 52784 9.5 06/20/18 0.00 140,741.97 140,741.97
0.00 63,094.55 63,094.55 GNMA2 255345 9.5 07/20/19 0.00 66,564.75 66,564.75
0.00 35,314.38 35,314.38 GNMA2 263506 9.5 12/20/18 0.00 37,256.67 37,256.67
0.00 210,920.94 210,920.94 GNMA2 281785 9.5 12/20/19 0.00 222,521.59 222,521.59
5,000,000.00 0.00 5,000,000.00 GMAC 5,025,000.00 0.00 5,025,000.00
5,120,000.00 0.00 5,120,000.00 GOLDMAN SACHS GROUP 4,825,600.00 0.00 4,825,600.00
1,580,000.00 0.00 1,580,000.00 HSBC HOLDING PLC 1,583,950.00 0.00 1,583,950.00
1,000,000.00 0.00 1,000,000.00 HERTZ CORP 1,003,750.00 0.00 1,003,750.00
3,168,164.17 0.00 3,168,164.17 HOUSING SECURITIES (CMO) 3,197,017.91 0.00 3,197,017.91
3,200,000.00 0.00 3,200,000.00 JB HUNT TRANSPORT 3,164,000.00 0.00 3,164,000.00
500,000.00 0.00 500,000.00 HUNTINGTON NAT'L BANK 506,250.00 0.00 506,250.00
4,220,000.00 0.00 4,220,000.00 IMCHE 1997-7 A5 4,171,786.50 0.00 4,171,786.50
</TABLE>
52
<PAGE> 196
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
5,000,000.00 0.00 5,000,000.00 IKON CAPITAL INC. 4,912,500.00 0.00 4,912,500.00
4,000,000.00 0.00 4,000,000.00 LUBRIZOL 3,580,000.00 0.00 3,580,000.00
5,150,000.00 0.00 5,150,000.00 MACK-CALI REALTY 4,989,062.50 0.00 4,989,062.50
3,293,371.65 0.00 3,293,371.65 MERRILL 1996-C1 A1 3,289,436.07 0.00 3,289,436.07
1,175,000.00 0.00 1,175,000.00 MONSANTO CO (144A) 1,145,881.15 0.00 1,145,881.15
1,500,000.00 0.00 1,500,000.00 NORTHERN ILL GAS CO 1,496,250.00 0.00 1,496,250.00
500,000.00 0.00 500,000.00 NORTHERN TRUST CO 499,375.00 0.00 499,375.00
6,380,000.00 0.00 6,380,000.00 NSCOR 1998-18 A4 5,756,573.20 0.00 5,756,573.20
5,000,000.00 0.00 5,000,000.00 OAK 1997-D A3 4,948,225.00 0.00 4,948,225.00
4,750,000.00 0.00 4,750,000.00 PA POWER & LIGHT 4,794,816.25 0.00 4,794,816.25
2,370,011.59 0.00 2,370,011.59 PALS 99 - 1 A1 (6.30%) 2,298,171.80 0.00 2,298,171.80
5,000,000.00 0.00 5,000,000.00 PRIME PROPERTY FNDG 144A 4,932,480.00 0.00 4,932,480.00
4,800,000.00 0.00 4,800,000.00 PNBMT 1999-2 A 4,793,736.00 0.00 4,793,736.00
2,500,000.00 0.00 2,500,000.00 PRUDENTIAL HOME MTG (CMO) 2,400,875.00 0.00 2,400,875.00
6,650,000.00 0.00 6,650,000.00 PSSF 1999-NRF1 A2 6,296,120.25 0.00 6,296,120.25
0.00 1,370,000.00 1,370,000.00 RES. MTG. 6.75% 06/25/28 0.00 1,258,939.99 1,258,939.99
7,800,000.00 0.00 7,800,000.00 RESID FDG MTG SECS 6.31% 7,676,799.00 0.00 7,676,799.00
3,250,000.00 0.00 3,250,000.00 RFMS2 99-HI6 A3 7.34% 3,242,720.00 0.00 3,242,720.00
6,420,000.00 0.00 6,420,000.00 RASC 1999-KS3 AI5 6,419,332.32 0.00 6,419,332.32
3,210,000.00 0.00 3,210,000.00 RFMSI1999-S12 A11 3,065,437.65 0.00 3,065,437.65
4,000,000.00 0.00 4,000,000.00 RYDER SYSTEM 3,780,000.00 0.00 3,780,000.00
0.00 1,399,525.91 1,399,525.91 RYL 17D CMO 9.00 07/01/16 0.00 1,466,003.39 1,466,003.39
300,000.00 0.00 300,000.00 ST PAUL COMPANIES 298,125.00 0.00 298,125.00
3,600,000.00 0.00 3,600,000.00 SCHOLASTIC CORP 3,537,000.00 0.00 3,537,000.00
5,245,000.00 0.00 5,245,000.00 SERVICE CORP INTL NT 5,107,318.75 0.00 5,107,318.75
5,490,000.00 0.00 5,490,000.00 SUNOCO INC 7.125% 5,393,925.00 0.00 5,393,925.00
3,325,000.00 0.00 3,325,000.00 SUN MICROSYSTEMS 3,329,156.25 0.00 3,329,156.25
3,305,963.71 0.00 3,305,963.71 THE MONEY STORE 1993-C A3 3,191,345.95 0.00 3,191,345.95
2,818,352.85 0.00 2,818,352.85 UCFCM 1997-3 A2 2,821,199.38 0.00 2,821,199.38
1,600,000.00 0.00 1,600,000.00 UNITED DOMINION RLTY 1,546,840.00 0.00 1,546,840.00
4,220,000.00 0.00 4,220,000.00 VENDE 99-2 ID 3,949,223.70 0.00 3,949,223.70
0.00 1,420,000.00 1,420,000.00 VENDE 6.50% 06/15/25 0.00 1,329,004.98 1,329,004.98
300,000.00 0.00 300,000.00 U.S. LEASING INTL INC. 297,000.00 0.00 297,000.00
1,036,770.00 0.00 1,036,770.00 U.S. TREASURY NOTE (TIPS) 949,380.66 0.00 949,380.66
0.00 3,300,000.00 3,300,000.00 US T-NOTES 6.125 12/31/01 0.00 3,307,755.00 3,307,755.00
0.00 6,015,000.00 6,015,000.00 US T-NOTES 6.625 03/31/02 0.00 6,092,352.90 6,092,352.90
</TABLE>
53
<PAGE> 197
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
19,655,000.00 0.00 19,655,000.00 U.S. TREASURY NOTE 19,468,670.60 0.00 19,468,670.60
0.00 1,580,000.00 1,580,000.00 US T-NOTES 6.125 08/15/07 0.00 1,565,021.60 1,565,021.60
0.00 4,000,000.00 4,000,000.00 US T-NOTES 5.75 11/15/00 0.00 3,996,920.00 3,996,920.00
5,185,650.00 0.00 5,185,650.00 U.S. TREASURY NOTE TIPS 4,999,329.60 0.00 4,999,329.60
0.00 5,195,500.00 5,195,500.00 TIP 3.625% 01/15/08 0.00 5,008,825.69 5,008,825.69
6,080,460.00 0.00 6,080,460.00 U.S. TREASURY TIP 5,957,026.66 0.00 5,957,026.66
0.00 3,070,740.00 3,070,740.00 US TIPS 3.875% 01/15/09 0.00 3,008,403.98 3,008,403.98
3,000,000.00 0.00 3,000,000.00 U.S. TREASURY NOTE 3,014,310.00 0.00 3,014,310.00
0.00 3,500,000.00 3,500,000.00 US T-NOTES 5.75% 08/15/03 0.00 3,459,505.00 3,459,505.00
14,965,000.00 0.00 14,965,000.00 U.S. TREASURY NOTE 15,169,421.90 0.00 15,169,421.90
8,045,000.00 0.00 8,045,000.00 U.S. TREASURY NOTE 8,083,213.75 0.00 8,083,213.75
200,000.00 0.00 200,000.00 WESTVIEW SCH CORP IND 191,637.40 0.00 191,637.40
820,000.00 0.00 820,000.00 WILLIAMS COMPANIES INC 798,475.00 0.00 798,475.00
5,605,000.00 0.00 5,605,000.00 WORTHINGTON INDUSTRIES 5,443,856.25 0.00 5,443,856.25
0.00 709,615.56 709,615.56 GOLDMAN SACHS SQ GOVT. 0.00 709,615.56 709,615.56
0.00 36,656,000.00 36,656,000.00 PAINEWEBER TRI PARTY 5.70% 0.00 36,656,000.00 36,656,000.00
309,875,293.39 147,877,502.22 457,752,295.61 302,593,073.05 146,990,198.00 449,583,271.05
</TABLE>
54
<PAGE> 198
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
Armada
Equity Income
Parkstone Armada Fund
Equity Income Equity Income Pro Forma
Fund Fund Combined
TOTAL INVESTMENTS: 283,926 516,528 800,454
------- ------- -------
ASSETS
Cash 0 101 101
Accrued Income 720 1,510 2,230
Investment Securities Sold 3,229 60 3,289
Cap Shares Sold 1 0 1
Other Assets 7 66 73
TOTAL ASSETS: 287,883 518,265 806,148
------- ------- -------
LIABILITIES
Income Payable 0 0 0
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 480 0 480
Accrued Expense Payable 364 683 1,047
Other Payables 32,109 0 32,109
TOTAL LIABILITIES: 32,953 683 33,636
------- ------- -------
TOTAL NET ASSETS: 254,930 517,582 772,512
55
<PAGE> 199
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Equity Income
Parkstone Armada Fund
Equity Income Equity Income Proforma Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends 7,344 0
Interest 3,944 400 0 11,654
------- ------- --------- -------
Foreign Tax Withheld (34)
TOTAL INCOME: 3,944 7,710 0 11,654
------- ------- --------- -------
EXPENSES:
Administrator Fees 339 193 (82) A 450
Investment Advisory Fees 1,365 2,066 - 3,431
Transfer Agent Fees 157 49 - 206
Custodian Fees 21 55 - 76
Professional Fees (Audit + Legal) 14 30 (7) A 37
Trustee (Directors) Fees 2 5 - 7
Registration Fees 15 48 (27) A 63
12b-1 Fees 194 114 75 A 281
Shareholder Servicing Fees 0 16 - 91
Printing Expenses 17 112 - 129
Miscellaneous Expenses 6 1 - 7
TOTAL EXPENSES: (2,130) (2,689) (41) (4,778)
------- ------- ------- -------
NET INVESTMENT INCOME: 1,814 5,021 (41) 6,876
------- ------- -------
0
Net Realized Gains (Losses) on Investments 35,998 22,814 0 58,812
Net Unrealized Appreciation (Depreciation)
of Investment Securities (63,483) (67,632) 0 (131,115)
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (27,485) (44,818) (41) (72,303)
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: (25,671) (39,797) (65,427)
------- ------- -------
</TABLE>
A - To adjust fees to reflect Armada's fee structure
56
<PAGE> 200
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Equity Income
Parkstone Armada Fund
Equity Income Equity Income Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 1,814 5,021 6,835
Net Realized Gain (Loss) on Securities Sold 35,998 22,814 58,812
Net Increase (Decrease) in Unrealized
Appreciation of Assets (63,483) (67,632) (131,115)
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: (25,671) (39,797) (65,468)
------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (1,320) (5,755) (7,075)
Investor A/Class A Shares (383) (114) (497)
Investor B/Class B Shares (43) (7) (50)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (1,746) (5,876) (7,622)
------- ------- -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 6,268 42,481 48,749
Shares Issued in Lieu of Cash Distributions 278 2,117 2,395
Shares Redeemed (31,690) (43,870) (75,560)
Net Institutional/Class I Share Transactions (25,144) 728 (24,416)
------- ------- -------
Investor A/Class A Shares
Shares Issued 1,874 4,330 6,204
Shares Issued in Lieu of Cash Distributions 355 82 437
Shares Redeemed (18,528) (2,636) (21,164)
Net Investor A/Class A Share Transactions 16,299 1,776 (14,523)
------- ------- -------
Investor B/Class B Shares
Shares Issued 263 509 772
Shares Issued in Lieu of Cash Distributions 41 7 48
Shares Redeemed (3,102) (198) (3,300)
Net Investor B/Class B Share Transactions (2,798) 318 (2,480)
------- ------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (44,241) 2,822 (41,419)
------- ------- -------
BEGINNING OF PERIOD: 326,588 560,433 887,021
------- ------- -------
END OF PERIOD: 254,930 517,582 772,512
------- ------- -------
</TABLE>
57
<PAGE> 201
SCHEDULE OF INVESTMENTS
ARMADA EQUITY INCOME/
PARKSTONE EQUITY INCOME
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Parkstone Armada Combined Parkstone Armada Combined
Shares Shares Shares Description Market Value Market Value Market Value
------ ------ ------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
148,550.00 292,750.00 441,300.00 AT&T CORP. 8,300,231.25 16,357,406.25 24,657,637.50
120,800.00 227,300.00 348,100.00 ALCOA INC. 7,912,400.00 14,888,150.00 22,800,550.00
40,966.00 56,500.00 97,466.00 ALLSTATE FINANCIAL 1,072,797.13 1,479,593.75 2,552,390.88
41,000.00 80,195.00 121,195.00 AM GEN DEL CONV 3,731,000.00 7,297,745.00 11,028,745.00
15,600.00 10,800.00 26,400.00 AMERICAN HOME PRODUCTS 811,200.00 561,600.00 1,372,800.00
58,600.00 118,500.00 177,100.00 AMERICAN WATER WORK, INC. 1,497,962.50 3,029,156.25 4,527,118.75
115,500.00 205,200.00 320,700.00 ARDEN REALTY, INC. 2,223,375.00 3,950,100.00 6,173,475.00
42,400.00 97,200.00 139,600.00 ARMSTRONG WORLD INDS INC 1,420,400.00 3,256,200.00 4,676,600.00
65,500.00 124,500.00 190,000.00 ATLANTIC RICHFIELD CO. 6,312,562.50 11,998,687.50 18,311,250.00
88,679.00 177,139.00 265,818.00 BANK OF AMERICA CORP. 5,187,721.50 10,362,631.50 15,550,353.00
11,200.00 62,400.00 73,600.00 BAXTER INTERNATIONAL 756,700.00 4,215,900.00 4,972,600.00
43,600.00 82,540.00 126,140.00 BELL ATLANTIC CORP. 2,760,425.00 5,225,813.75 7,986,238.75
77,700.00 146,200.00 223,900.00 H & R BLOCK 3,341,100.00 6,286,600.00 9,627,700.00
35,500.00 70,400.00 105,900.00 CIGNA CORP. 2,919,875.00 5,790,400.00 8,710,275.00
13,200.00 35,200.00 48,400.00 CATERPILLAR INC 612,150.00 1,632,400.00 2,244,550.00
29,600.00 77,300.00 106,900.00 CHASE MANHATTAN CORP. 2,286,600.00 5,971,425.00 8,258,025.00
65,800.00 130,100.00 195,900.00 CHEVRON CORPORATION 5,827,412.50 11,521,981.25 17,349,393.75
47,900.00 78,661.00 126,561.00 CHUBB CORPORATION 2,565,643.75 4,213,279.81 6,778,923.56
53,700.00 169,400.00 223,100.00 COMERICA INC. 2,846,100.00 8,978,200.00 11,824,300.00
17,200.00 86,200.00 103,400.00 CON EDISON INC. 593,400.00 2,973,900.00 3,567,300.00
78,100.00 154,725.00 232,825.00 CONSOLIDATED NAT. GAS 5,008,162.50 9,921,740.63 14,929,903.13
38,500.00 82,700.00 121,200.00 COOPER INDUSTRIES INC. 1,653,093.75 3,550,931.25 5,204,025.00
18,400.00 41,100.00 59,500.00 DEERE & COMPANY 790,050.00 1,764,731.25 2,554,781.25
49,100.00 184,700.00 233,800.00 DEVELOPERS DIVERS REALTY 684,331.25 2,574,256.25 3,258,587.50
30,600.00 62,984.00 93,584.00 DOW CHEMICAL COMPANY 3,584,025.00 7,377,001.00 10,961,026.00
39,000.00 75,700.00 114,700.00 DU PONT E I DE NEMOURS 2,318,062.50 4,499,418.75 6,817,481.25
</TABLE>
58
<PAGE> 202
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
32,100.00 63,400.00 95,500.00 DUKE ENERGY CORP. 1,627,068.75 3,213,587.50 4,840,656.25
161,800.00 324,800.00 486,600.00 DUKE REALTY INVESTMENTS 2,993,300.00 6,008,800.00 9,002,100.00
85,900.00 166,900.00 252,800.00 DUN & BRADSTREET 2,319,300.00 4,506,300.00 6,825,600.00
55,800.00 111,200.00 167,000.00 EMERSON ELECTRIC 3,180,600.00 6,338,400.00 9,519,000.00
130,100.00 258,600.00 388,700.00 ENRON CORP 4,951,931.25 9,842,962.50 14,794,893.75
49,500.00 75,700.00 125,200.00 FPL GROUP, INC. 2,165,625.00 3,311,875.00 5,477,500.00
55,700.00 104,800.00 160,500.00 FED HOME LOAN MORTGAGE 2,750,187.50 5,174,500.00 7,924,687.50
68,400.00 136,700.00 205,100.00 FANNIE MAE 4,557,150.00 9,107,637.50 13,664,787.50
76,700.00 145,100.00 221,800.00 FIRST TENNESSEE NAT CORP. 2,521,512.50 4,770,162.50 7,291,675.00
74,000.00 129,600.00 203,600.00 FLEETBOSTON FINANCIAL 2,798,125.00 4,900,500.00 7,698,625.00
112,500.00 224,100.00 336,600.00 FLOWERS INDUSTRIES 1,842,187.50 3,669,637.50 5,511,825.00
48,800.00 120,500.00 169,300.00 FORD MOTOR CO. 2,464,400.00 6,085,250.00 8,549,650.00
75,600.00 222,300.00 297,900.00 FORTUNE BRANDS INC. 2,584,575.00 7,599,881.25 10,184,456.25
26,600.00 52,400.00 79,000.00 GENERAL PUB UTIL CORP. 851,200.00 1,676,800.00 2,528,000.00
87,100.00 170,800.00 257,900.00 GTE CORP. 6,358,300.00 12,468,400.00 18,826,700.00
31,300.00 127,100.00 158,400.00 GENERAL DYNAMICS CORP. 1,613,906.25 6,553,593.75 8,167,500.00
102,800.00 238,200.00 341,000.00 GENERAL MILLS INC. 3,874,275.00 8,977,162.50 12,851,437.50
35,800.00 92,100.00 127,900.00 GENERAL MOTORS CORP. 2,577,600.00 6,631,200.00 9,208,800.00
53,200.00 175,600.00 228,800.00 GENUINE PARTS CO. 1,369,900.00 4,521,700.00 5,891,600.00
39,200.00 95,700.00 134,900.00 HUBBELL, INC., CLASS B 1,092,700.00 2,667,637.50 3,760,337.50
38,500.00 82,600.00 121,100.00 I B M 3,967,906.25 8,512,962.50 12,480,868.75
15,000.00 70,386.00 85,386.00 INTL PAPER 5.25% PFD 774,375.00 3,616,080.75 4,390,455.75
51,790.00 103,295.00 155,085.00 INTIMATE BRANDS 2,220,496.25 4,428,773.13 6,649,269.38
36,800.00 64,000.00 100,800.00 KIMBERLY CLARK CORP. 2,350,600.00 4,088,000.00 6,438,600.00
41,100.00 65,000.00 106,100.00 KIMCO REALTY 1,366,575.00 2,161,250.00 3,527,825.00
36,500.00 145,400.00 181,900.00 LG&E ENERGY CORPORATION 730,000.00 2,908,000.00 3,638,000.00
43,600.00 70,400.00 114,000.00 MACK CALI REALTY CORP. 1,076,375.00 1,738,000.00 2,814,375.00
66,500.00 120,250.00 186,750.00 MARSH & MCLENNAN 5,228,562.50 9,454,656.25 14,683,218.75
121,800.00 243,100.00 364,900.00 MASCO CORP. 3,075,450.00 6,138,275.00 9,213,725.00
64,200.00 112,600.00 176,800.00 MATTEL 918,862.50 1,611,587.50 2,530,450.00
123,150.00 205,800.00 328,950.00 MAY DEPARTMENT STORES 4,140,918.75 6,920,025.00 11,060,943.75
35,400.00 62,600.00 98,000.00 MAYTAG 1,688,137.50 2,985,237.50 4,673,375.00
8,600.00 65,900.00 74,500.00 MINN. MINING & MFG CO. 821,837.50 6,297,568.75 7,119,406.25
101,000.00 198,600.00 299,600.00 MOBIL CORP. 10,535,562.50 20,716,462.50 31,252,025.00
32,800.00 65,300.00 98,100.00 J.P. MORGAN 4,313,200.00 8,586,950.00 12,900,150.00
</TABLE>
59
<PAGE> 203
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
27,200.00 64,800.00 92,000.00 NEW YORK TIMES CO. 1,045,500.00 2,490,750.00 3,536,250.00
53,200.00 95,453.00 148,653.00 NORTHROP GRUMMAN CORP 2,989,175.00 5,363,265.44 8,352,440.44
85,400.00 170,000.00 255,400.00 PNC BANK CORP. 4,761,050.00 9,477,500.00 14,238,550.00
72,400.00 106,000.00 178,400.00 J.C. PENNEY 1,615,425.00 2,365,125.00 3,980,550.00
74,700.00 149,300.00 224,000.00 PITNEY BOWES, INC. 3,580,931.25 7,157,068.75 10,738,000.00
237,500.00 470,550.00 708,050.00 RPM INC OHIO 2,790,625.00 5,528,962.50 8,319,587.50
94,100.00 177,300.00 271,400.00 ROYAL DUTCH PETRO.-NY 5,457,800.00 10,283,400.00 15,741,200.00
119,061.00 236,485.00 355,546.20 SBC COMM INC 6,183,730.69 12,282,450.08 18,466,180.77
156,900.00 308,600.00 465,500.00 SARA LEE 3,804,825.00 7,483,550.00 11,288,375.00
66,850.00 108,700.00 175,550.00 SEARS ROEBUCK 2,285,434.38 3,716,181.25 6,001,615.63
61,600.00 123,000.00 184,600.00 SNAP ON TOOLS, INC. 1,863,400.00 3,720,750.00 5,584,150.00
84,100.00 280,200.00 364,300.00 SOUTHTRUST CORP 3,264,131.25 10,875,262.50 14,139,393.75
10,700.00 21,000.00 31,700.00 TEMPLE-INLAND INC 612,575.00 1,202,250.00 1,814,825.00
96,500.00 202,600.00 299,100.00 TEXACO, INC. 5,880,468.75 12,345,937.50 18,226,406.25
18,600.00 40,700.00 59,300.00 TEXTRON INC COMMON 1,321,762.50 2,892,243.75 4,214,006.25
53,400.00 104,000.00 157,400.00 THOMAS & BETTS CORP. 2,189,400.00 4,264,000.00 6,453,400.00
96,800.00 211,900.00 308,700.00 UST INCORPORATED 2,577,300.00 5,641,837.50 8,219,137.50
74,500.00 133,400.00 207,900.00 USX-U.S. STEEL GROUP INC. 1,885,781.25 3,376,687.50 5,262,468.75
120,800.00 230,300.00 351,100.00 ULTRAMAR DIAMOND SHAMROCK 3,057,750.00 5,829,468.75 8,887,218.75
102,600.00 275,800.00 378,400.00 UNIONBANCAL CORP 4,520,812.50 12,152,437.50 16,673,250.00
41,400.00 70,200.00 111,600.00 UNITED TECHNOLOGIES CORP. 2,339,100.00 3,966,300.00 6,305,400.00
73,000.00 156,800.00 229,800.00 WASHINGTON MUTUAL, INC. 2,117,000.00 4,547,200.00 6,664,200.00
50,500.00 82,800.00 133,300.00 WEYERHAEUSER CO. 3,093,125.00 5,071,500.00 8,164,625.00
47,800.00 95,000.00 142,800.00 XEROX CORP. 1,293,587.50 2,570,937.50 3,864,525.00
6,566,756.00 0.00 6,566,756.00 GOLDMAN SACHS SQ PREMIUM 6,566,756.00 0 6,566,756.00
0 4,053,952.06 4,053,952.06 FIDELITY DOMESTIC MM #690 0.00 4,053,952.06 4,053,952.06
5,000,000.00 0 5,000,000.00 OGE ENERGY CORP. 5.81% 5,000,000.00 0 5,000,000.00
27,109,000.00 0 27,109,000.00 BEAR STEARNS & CO. TRIPARTY 5 27,109,000.00 0 27,109,000.00
------------------- ----------------
44,201,702.00 15,610,065.26 59,811,767.26 283,925,929.70 516,528,083.15 800,454,012.85
</TABLE>
60
<PAGE> 204
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Small Cap
Parkstone Armada Growth
Small Small Cap Fund
Capitalization Growth Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 318,842 113,563 432,405
------- ------- -------
ASSETS
Cash 149 230 379
Accrued Income 96 42 138
Investment Securities Sold 12,465 4,554 17,019
Cap Shares Sold 109 2 111
Other Assets 29 242 271
TOTAL ASSETS: 331,690 118,633 450,323
------- ------- -------
LIABILITIES
Income Payable 0 0 0
Capital Gain Payable 0 0 0
Investment Securities Purchased 1,519 556 2,075
Capital Shares Redeemed Payable 165 0 165
Accrued Expense Payable 575 132 707
Other Payables 39,011 51 39,062
TOTAL LIABILITIES: 41,270 739 42,009
------- ------- -------
TOTAL NET ASSETS: 290,420 117,894 408,314
</TABLE>
61
<PAGE> 205
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Small Cap
Parkstone Armada Growth
Small Small Cap Fund
Capitalization Growth Proforma Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends 54 0
Interest 963 400 0 1,417
------ ------ --------- -------
TOTAL INCOME: 963 454 0 1,417
------ ------ --------- -------
EXPENSES:
Administrator Fees 333 33 (88) A 278
Investment Advisory Fees 1,445 476 - 1,921
Transfer Agent Fees 254 29 - 283
Custodian Fees 20 8 - 28
Professional Fees (Audit + Legal) 13 1 (5) A 9
Trustee (Directors) Fees 2 1 - 3
Registration Fees 15 8 - 23
12b-1 Fees 158 20 (6) A 172
Shareholder Servicing Fees 0 2 61 A 63
Printing Expenses 17 3 - 20
Miscellaneous Expenses 4 1 - 5
TOTAL EXPENSES: (2,261) (582) (38) (2,805)
------ ------ -------- -------
NET INVESTMENT INCOME: (1,298) (128) (38) (1,388)
------ ------ -------
Net Realized Gains (Losses) on Investments 43,051 7,111 0 50,162
Net Unrealized Appreciation (Depreciation)
of Investment Securities 36,589 18,990 0 55,579
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 79,640 26,101 0 105,741
------ ------ -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 78,342 25,973 (38) 104,353
------ ------ -------- -------
</TABLE>
A - To adjust fees to reflect Armada's fee structure
62
<PAGE> 206
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Small Cap
Parkstone Armada Growth
Small Small Cap Fund
Capitalization Growth Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (1,298) (128) (1,426)
Net Realized Gain (Loss) on Securities Sold 43,051 7,111 50,162
Net Increase (Decrease) in Unrealized
Appreciation of Assets 36,589 18,990 55,579
------- ------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 78,342 25,973 104,315
------- ------- --------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: - - -
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 2,336 18,021 20,357
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (65,019) (7,800) (72,819)
Net Institutional/Class I Share Transactions (62,683) 10,221 (52,462)
------- ------- --------
Investor A/Class A Shares
Shares Issued 27,215 1,669 28,884
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (50,662) (1,356) (52,018)
Net Investor A/Class A Share Transactions (23,447) 313 (23,134)
------- ------- --------
Investor B/Class B Shares
Shares Issued 256 30 286
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (4,736) (16) (4,752)
Net Investor B/Class B Share Transactions (4,480) 14 (4,466)
------- ------- --------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (90,610) 10,548 (80,062)
------- ------- --------
BEGINNING OF PERIOD: 302,688 81,373 384,061
------- ------- --------
END OF PERIOD: 290,420 117,894 408,314
------- ------- --------
</TABLE>
63
<PAGE> 207
SCHEDULE OF INVESTMENTS
ARMADA SMALL CAP GROWTH/
PARKSTONE SMALL CAPITALIZATION
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Parkstone Armada Combined Parkstone Armada Combined
Shares Shares Shares Description Market Value Market Value Market Value
------ ------ ------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
107,100.00 41,500.00 148,600.00 ACT MANUFACTURING INC 3,273,243.75 1,268,343.75 4,541,587.50
62,500.00 24,200.00 86,700.00 ADELPHIA BUSINESS SOLUT. 1,953,125.00 756,250.00 2,709,375.00
54,400.00 21,500.00 75,900.00 ADVANCED DIGITAL INFO. 2,444,600.00 966,156.25 3,410,756.25
9,700.00 3,300.00 13,000.00 AFFYMETRIX INC 950,600.00 323,400.00 1,274,000.00
17,000.00 6,500.00 23,500.00 ALLAIRE CORPORATION 2,581,875.00 987,187.50 3,569,062.50
28,300.00 10,600.00 38,900.00 ANCHOR GAMING 1,558,268.75 583,662.50 2,141,931.25
27,800.00 11,100.00 38,900.00 ANCOR COMMUNICATIONS 1,685,375.00 672,937.50 2,358,312.50
59,300.00 22,700.00 82,000.00 ANTEC CORPORATION 3,320,800.00 1,271,200.00 4,592,000.00
20,330.00 7,850.00 28,180.00 ARTHROCARE CORPORATION 1,229,965.00 474,925.00 1,704,890.00
88,600.00 33,300.00 121,900.00 ATLAS AIR INC 2,231,612.50 838,743.75 3,070,356.25
107,900.00 39,800.00 147,700.00 AUDIOVOX CORP. 3,210,025.00 1,184,050.00 4,394,075.00
80,600.00 32,000.00 112,600.00 BJ'S WHOLESALE CLUB INC 3,012,425.00 1,196,000.00 4,208,425.00
71,500.00 24,200.00 95,700.00 BIOMATRIX INC 1,680,250.00 568,700.00 2,248,950.00
50,000.00 17,100.00 67,100.00 BURR-BROWN CORP 2,215,625.00 757,743.75 2,973,368.75
32,300.00 12,800.00 45,100.00 BUSINESS OBJECTS-ADR 2,858,550.00 1,132,800.00 3,991,350.00
39,550.00 15,100.00 54,650.00 C-COR.NET CORPORATION 2,019,521.88 771,043.75 2,790,565.63
87,800.00 33,500.00 121,300.00 CTS CORP. 7,040,462.50 2,686,281.25 9,726,743.75
32,750.00 12,100.00 44,850.00 CAL DIVE INTERNATIONAL 1,191,281.25 440,137.50 1,631,418.75
93,700.00 32,400.00 126,100.00 CHEAP TICKETS INC. 1,563,618.75 540,675.00 2,104,293.75
75,900.00 25,700.00 101,600.00 CHILDREN'S PLACE STORES 1,873,781.25 634,468.75 2,508,250.00
61,600.00 24,400.00 86,000.00 CHIREX CORP 2,140,600.00 847,900.00 2,988,500.00
41,900.00 15,050.00 56,950.00 CHURCH AND DWIGHT INC 1,173,200.00 421,400.00 1,594,600.00
45,400.00 18,000.00 63,400.00 CITADEL COMMUNICATIONS 2,272,837.50 901,125.00 3,173,962.50
43,900.00 17,400.00 61,300.00 CLARIFY INC. 4,091,617.19 1,621,734.38 5,713,351.57
156,600.00 61,200.00 217,800.00 COMMSCOPE INC. 6,596,775.00 2,578,050.00 9,174,825.00
35,885.00 14,700.00 50,585.00 CORPORATE EXECUTIVE BOARD 1,668,652.50 683,550.00 2,352,202.50
40,300.00 15,900.00 56,200.00 CREDENCE SYSTEMS CORP 2,334,881.25 921,206.25 3,256,087.50
75,800.00 29,800.00 105,600.00 CULLEN FROST BANKERS 2,160,300.00 849,300.00 3,009,600.00
101,400.00 40,000.00 141,400.00 CUMULUS MEDIA INC. 4,056,000.00 1,600,000.00 5,656,000.00
</TABLE>
64
<PAGE> 208
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
70,500.00 26,500.00 97,000.00 CYMER INC. 2,820,000.00 1,060,000.00 3,880,000.00
87,400.00 32,300.00 119,700.00 DII GROUP INC 5,517,125.00 2,038,937.50 7,556,062.50
133,600.00 52,300.00 185,900.00 DATASCOPE CORP 4,955,725.00 1,940,003.13 6,895,728.13
37,200.00 16,300.00 53,500.00 DIAMOND TECH 1,953,000.00 855,750.00 2,808,750.00
20,000.00 7,500.00 27,500.00 DIGEX INC 670,000.00 251,250.00 921,250.00
65,200.00 24,500.00 89,700.00 DIGITAL RIVER. 1,988,600.00 747,250.00 2,735,850.00
34,500.00 13,400.00 47,900.00 EGAINS COMMUNICATION 1,449,000.00 562,800.00 2,011,800.00
42,700.00 14,450.00 57,150.00 ENZON INC 1,441,125.00 487,687.50 1,928,812.50
70,500.00 27,400.00 97,900.00 EXAR CORPORATION 3,428,062.50 1,332,325.00 4,760,387.50
85,700.00 34,000.00 119,700.00 EXPEDITORS INTL WASH INC 3,492,275.00 1,385,500.00 4,877,775.00
55,500.00 18,800.00 74,300.00 F.Y.I. INC. 1,776,000.00 601,600.00 2,377,600.00
63,500.00 21,800.00 85,300.00 FAIRCHILD SEMICON INT'L-A 1,778,000.00 610,400.00 2,388,400.00
89,300.00 33,000.00 122,300.00 FOREST OIL CORP 1,021,368.75 377,437.50 1,398,806.25
159,600.00 63,400.00 223,000.00 GENTEX CORP 2,982,525.00 1,184,787.50 4,167,312.50
60,200.00 20,614.00 80,814.00 HELIX TECHNOLOGY CORP. 2,437,159.38 834,544.91 3,271,704.29
179,600.00 66,850.00 246,450.00 HOOPER HOLMES INC 4,243,050.00 1,579,331.25 5,822,381.25
155,000.00 60,100.00 215,100.00 ICG COMMUNICATIONS INC 2,935,312.50 1,138,143.75 4,073,456.25
113,400.00 44,900.00 158,300.00 IMPERIAL BANCORP 2,721,600.00 1,077,600.00 3,799,200.00
62,000.00 21,200.00 83,200.00 INTEGRATED DEVICE TECH 1,460,875.00 499,525.00 1,960,400.00
61,700.00 24,300.00 86,000.00 INTERMEDIA COMMUNICATIONS 1,719,887.50 677,362.50 2,397,250.00
142,000.00 56,400.00 198,400.00 JACK IN THE BOX INC 2,990,875.00 1,187,925.00 4,178,800.00
107,050.00 42,400.00 149,450.00 KING PHARMACEUTICALS INC. 4,937,681.25 1,955,700.00 6,893,381.25
53,800.00 19,850.00 73,650.00 LOUIS DREYFUS NAT. GAS 968,400.00 357,300.00 1,325,700.00
60,000.00 22,800.00 82,800.00 MACROVISION INC 3,832,500.00 1,456,350.00 5,288,850.00
46,400.00 20,300.00 66,700.00 MASTEC INC 1,911,100.00 836,106.25 2,747,206.25
66,600.00 26,300.00 92,900.00 MERCURY COMPUTER SYSTEMS 3,800,362.50 1,500,743.75 5,301,106.25
40,000.00 15,900.00 55,900.00 MERCURY INTERACTIVE 3,325,000.00 1,321,687.50 4,646,687.50
83,000.00 31,400.00 114,400.00 METRIS COMPANIES 2,624,875.00 993,025.00 3,617,900.00
13,500.00 5,100.00 18,600.00 MICROSTRATEGY INC. 1,653,750.00 624,750.00 2,278,500.00
35,400.00 13,600.00 49,000.00 MICROMUSE INC 4,048,875.00 1,555,500.00 5,604,375.00
15,300.00 5,200.00 20,500.00 MILLENNIUM PHARMACEUTICAL 1,489,359.38 506,187.50 1,995,546.88
165,300.00 61,200.00 226,500.00 MONACO COACH CORPORATION 3,553,950.00 1,315,800.00 4,869,750.00
84,600.00 33,600.00 118,200.00 NATL COMPUTER SYSTEMS 3,246,525.00 1,289,400.00 4,535,925.00
91,300.00 36,200.00 127,500.00 NATIONAL INFO CONSORTIUM 2,408,037.50 954,775.00 3,362,812.50
138,500.00 53,900.00 192,400.00 NETOBJECTS INC. 1,878,406.25 731,018.75 2,609,425.00
242,000.00 92,000.00 334,000.00 NETSILICON INC 3,206,500.00 1,219,000.00 4,425,500.00
3,050.00 1,050.00 4,100.00 NEXT LEVEL COMMUNICATIONS 196,915.63 67,790.63 264,706.26
56,000.00 20,900.00 76,900.00 NICOR INC 1,942,500.00 724,968.75 2,667,468.75
</TABLE>
65
<PAGE> 209
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
158,000.00 62,500.00 220,500.00 NOVADIGM, INC. 2,745,250.00 1,085,937.50 3,831,187.50
163,370.00 64,900.00 228,270.00 ONLINE RESOURCES & COMM. 2,001,282.50 795,025.00 2,796,307.50
85,700.00 32,400.00 118,100.00 ONYX SOFTWARE CORP 2,763,825.00 1,044,900.00 3,808,725.00
13,000.00 8,200.00 21,200.00 OPTICAL COATING LABS 2,557,750.00 1,023,100.00 3,580,850.00
106,500.00 42,300.00 148,800.00 OPTIMAL ROBOTICS 3,461,250.00 1,374,750.00 4,836,000.00
40,100.00 13,700.00 53,800.00 PRI AUTOMATION 1,899,737.50 649,037.50 2,548,775.00
145,600.00 57,800.00 203,400.00 POLYMEDICA CORPORATION 2,548,000.00 1,011,500.00 3,559,500.00
56,400.00 20,700.00 77,100.00 PRIORITY HLTHCARE CORP B 1,395,900.00 512,325.00 1,908,225.00
31,500.00 11,200.00 42,700.00 PROXIM CORP 1,764,000.00 627,200.00 2,391,200.00
30,400.00 14,400.00 44,800.00 QRS CORPORATION 1,767,000.00 687,500.00 3,464,500.00
57,600.00 22,000.00 79,600.00 REMEDY CORPORATION 2,008,800.00 767,250.00 2,776,050.00
346,700.00 117,350.00 464,050.00 REPUBLIC SECURITY FINL 2,784,434.38 942,467.19 3,726,901.57
116,900.00 45,450.00 162,350.00 REX STORES CORPORATION 4,361,831.25 1,695,853.13 6,057,684.38
85,500.00 33,100.00 118,600.00 SBS TECHNOLOGIES, INC 2,885,625.00 1,117,125.00 4,002,750.00
264,900.00 114,300.00 379,200.00 SBA COMMUNICATIONS CORP 3,046,350.00 1,314,450.00 4,360,800.00
88,600.00 33,550.00 122,150.00 SAWTEK INC 4,042,375.00 1,530,718.75 5,573,093.75
91,300.00 34,450.00 125,750.00 SILICON STORAGE TECH 2,419,450.00 912,925.00 3,332,375.00
42,450.00 15,870.00 58,320.00 SONIC WALL INC 1,451,259.38 542,555.63 1,993,815.01
63,800.00 23,800.00 87,600.00 SOUTHWEST GAS CORP. 1,495,312.50 557,812.50 2,053,125.00
92,400.00 34,900.00 127,300.00 SPANISH BROADCASTING,CL A 2,933,700.00 1,108,075.00 4,041,775.00
86,600.00 33,000.00 119,600.00 STATION CASINOS INC 2,078,400.00 792,000.00 2,870,400.00
93,000.00 35,200.00 128,200.00 SYMANTEC CORP 4,341,937.50 1,643,400.00 5,985,337.50
50,400.00 20,100.00 70,500.00 T-HQ, INC. 2,709,000.00 1,080,375.00 3,789,375.00
67,300.00 24,850.00 92,150.00 TESORO PETRO. CORP. 807,600.00 298,200.00 1,105,800.00
134,900.00 50,700.00 185,600.00 THERAGENICS CORP 1,289,981.25 484,818.75 1,774,800.00
166,720.00 62,480.00 229,200.00 3DO COMPANY 1,578,630.00 591,607.50 2,170,237.50
100,000.00 37,900.00 137,900.00 TITAN CORP 2,706,250.00 1,025,668.75 3,731,918.75
153,000.00 51,800.00 204,800.00 TITAN PHARMACEUTICALS 2,199,375.00 744,625.00 2,944,000.00
124,750.00 49,400.00 174,150.00 TOO INC 2,307,875.00 913,900.00 3,221,775.00
41,000.00 16,200.00 57,200.00 TRANSWITCH CORP 1,927,000.00 761,400.00 2,688,400.00
104,200.00 41,200.00 145,400.00 TREX COMPANY INC. 2,683,150.00 1,060,900.00 3,744,050.00
59,700.00 23,550.00 83,250.00 VALASSIS COMMUNICATIONS 2,350,687.50 927,281.25 3,277,968.75
75,900.00 28,900.00 104,800.00 VISUAL NETWORKS INC. 4,478,100.00 1,705,100.00 6,183,200.00
89,000.00 33,700.00 122,700.00 ZORAN CORP 3,548,875.00 1,343,787.50 4,892,662.50
91,400.00 36,000.00 127,400.00 ANNUITY & LIFE 2,604,900.00 1,026,000.00 3,630,900.00
189,600.00 73,800.00 263,400.00 SCOTTISH ANNUITY & LIFE 1,611,600.00 491,300.00 2,102,900.00
221,000.00 84,300.00 305,300.00 ASM INTER'L N.V. 3,591,250.00 1,369,875.00 4,961,125.00
100,000.00 55,000.00 155,000.00 SAPIENS INTERNATIONAL 1,387,500.00 555,000.00 1,942,500.00
</TABLE>
66
<PAGE> 210
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0 4,717,920.44 4,717,920.44 FSQ PREMIUM MM #483 0 4,717,920.44 4,717,920.44
0 6,400,000.00 6,400,000.00 REPO (5.53%) PRUDENTIAL 0 6,400,000.00 6,400,000.00
12,099,107.06 0.00 12,099,107.06 GOLDMAN SACHS SQ PREMIUM 12,099,107.06 0.00 12,099,107.06
15,000,000.00 0.00 15,000,000.00 FEDERAL SIGNAL CORP. 15,000,000.00 0.00 15,000,000.00
24,011,000.00 0.00 24,011,000.00 BEAR STEARNS REPO 24,011,000.00 0.00 24,011,000.00
59,780,025.06 14,524,284.44 74,504,330.50 318,841,523.03 113,562,901.94 432,404,424.97
</TABLE>
67
<PAGE> 211
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
International
Parkstone Armada Equity Fund
International International Pro Forma
Discovery Fund Equity Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 365,314 312,534 677,848
------- ------- -------
ASSETS
Cash 610 1,123 1,733
Accrued Income 248 149 397
Investment Securities Sold 1,744 678 2,422
Cap Shares Sold 70 653 723
Other Assets 269 198 467
TOTAL ASSETS: 368,255 316,354 684,609
------- ------- -------
LIABILITIES
Income Payable 0 0 0
Capital Gain Payable 0 0 0
Investment Securities Purchased 1,125 1,028 2,153
Capital Shares Redeemed Payable 101 14 115
Accrued Expense Payable 819 463 1,282
Other Payables 22,845 169 23,014
TOTAL LIABILITIES: 24,890 1,674 26,564
------- ------- -------
TOTAL NET ASSETS: 343,365 314,680 658,045
</TABLE>
68
<PAGE> 212
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
International
Parkstone Armada Equity Fund
International International Proforma Pro Forma
Discovery Fund Equity Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends 1,443 0
Interest 1,823 379 0 3,550
------ ------ --------- -------
Less Foreign Tax (95)
TOTAL INCOME: 1,823 1,727 0 3,550
------ ------ --------- -------
EXPENSES:
Administrator Fees 387 86 (124)A 349
Investment Advisory Fees 1,836 1,412 - 3,248
Transfer Agent Fees 119 31 - 150
Custodian Fees 104 132 - 236
Professional Fees (Audit + Legal) 15 6 (8)A 13
Trustee (Directors) Fees 2 2 - 4
Registration Fees 14 6 - 20
12b-1 Fees 70 49 36 A 155
Shareholder Servicing Fees 0 2 30 A 32
Printing Expenses 17 3 - 20
Miscellaneous Expenses 6 2 - 8
TOTAL EXPENSES: (2,570) (1,731) (66) (4,235)
------ ------ ------- -------
NET INVESTMENT INCOME: (747) (4) (66) (685)
------ ------ ------- -------
Net Realized Gains (Losses) on Investments 36,562 11,700 0 48,262
Net Unrealized Appreciation (Depreciation)
of Investment Securities 55,195 62,048 0 117,243
------ ------ ------- -------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 91,757 73,748 (0) 165,505
------ ------ ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 91,010 73,744 (66) 164,820
------ ------ ------- -------
</TABLE>
A - To adjust fees to reflect Armada's fee structure
69
<PAGE> 213
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
International
Parkstone Armada Equity Fund
International International Pro Forma
Discovery Fund Equity Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income (747) (4) (751)
Net Realized Gain (Loss) on Securities Sold 36,562 11,700 48,262
Net Increase (Decrease) in Unrealized
Appreciation of Assets 55,195 62,048 117,243
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 91,010 73,744 164,754
------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: - - -
------- ------- -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 2,819 45,059 47,878
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (41,321) (5,071) (46,392)
Net Institutional/Class I Share Transactions (38,502) 39,988 1,486
------- ------- -------
Investor A/Class A Shares
Shares Issued 42,393 882 43,275
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (50,420) (358) (50,778)
Net Investor A/Class A Share Transactions (8,027) 524 (7,503)
------- ------- -------
Investor B/Class B Shares
Shares Issued 38 70 108
Shares Issued in Lieu of Cash Distributions - - -
Shares Redeemed (1,436) (20) (1,456)
Net Investor B/Class B Share Transactions (1,398) 50 (1,348)
------- ------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (47,927) 40,562 (7,365)
------- ------- -------
BEGINNING OF PERIOD: 300,282 200,374 500,656
------- ------- -------
END OF PERIOD: 343,365 314,680 658,045
------- ------- -------
</TABLE>
70
<PAGE> 214
Proforma Combined Schedule Of Investments
Armada International Equity/
Parkstone International Discovery
As of 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
2,174 2,560 4,734 ADECCO 1,393,519.48 1,636,525.12 3,030,044.60
13,260 48,596 61,856 AHOLD 422,837.11 1,546,705.21 1,969,542.32
7,446 8,177 15,623 ALLIANZ 2,183,975.84 2,393,846.23 4,577,822.07
226,290 250,626 476,916 ALLIED ZURICH 2,744,552.73 3,043,689.80 5,788,242.53
9,667 10,861 20,528 ALTRAN TECHNOLOGIES SA 4,607,852.89 5,167,186.73 9,775,039.62
33,862 38,089 71,951 ASSIC GENERALI 976,975.59 1,096,852.26 2,073,827.85
34,219 64,493 98,712 AVENTIS (FRANCE) 2,122,987.82 3,993,652.05 6,116,639.87
29,402 34,619 64,021 AXA-UAP 3,971,572.77 4,667,427.98 8,639,000.75
219,172 241,947 461,119 BANK OF IRELAND 1,807,498.33 1,995,201.09 3,802,699.42
62,533 71,148 133,681 BANK OF TOKYO-MITS 905,155.52 1,027,689.15 1,932,844.67
114,295 127,362 241,657 BASS - NEW 1,291,252.24 1,434,147.11 2,725,399.35
19,482 22,443 41,925 BATM ADVANCED COMM 1,276,385.43 1,465,545.09 2,741,930.52
27,550 31,380 58,930 BAYER VEREINSBK 1,712,014.30 1,946,328.67 3,658,342.97
46,490 25,530 72,020 BCE INC 3,143,886.25 1,726,466.25 4,870,352.50
0 27,252 27,252 BCE INC 0.00 1,836,106.40 1,836,106.40
19,669 23,218 42,887 BENESSE CORPORATION 4,721,948.81 5,562,229.95 10,284,178.76
134,231 166,393 300,624 BOC GROUP 2,773,420.95 3,429,286.31 6,202,707.26
52,505 401,158 453,663 BP AMOCO 535,285.87 4,092,314.56 4,627,600.43
50,714 0 50,714 BP AMOCO ADR 3,090,384.38 0.00 3,090,384.38
0 37,436 37,436 BRITISH AERO LOAN STK 0.00 56,195.93 56,195.93
0 118,529 118,529 BRITISH AEROSPACE 0.00 677,253.31 677,253.31
133,320 151,285 284,605 BRITISH TELECOM 2,681,099.71 3,040,812.50 5,721,912.21
203,815 231,976 435,791 BULGARI SPA (BUG LI) 1,572,905.58 1,786,845.57 3,359,751.15
</TABLE>
71
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
14,462 16,240 30,702 CASTORAMA 3,764,030.53 4,218,793.42 7,982,823.95
923,776 1,066,265 1,990,041 CHINA TELECOM (HONG KONG) 4,960,270.31 5,725,053.54 10,685,323.85
7,017 8,336 15,353 CIE DE ST GOBAIN 1,196,308.68 1,418,492.16 2,614,800.84
46,780 54,525 101,305 COLT TELECOM GROUP 1,769,387.34 2,057,288.28 3,826,675.62
169,884 191,189 361,073 COMPASS GROUP 2,063,148.61 2,318,821.02 4,381,969.63
12,486 14,305 26,791 CREDIT SUISSE, REG 2,341,223.37 2,675,078.87 5,016,302.24
281,783 317,515 599,298 DBS GROUP HOLDINGS LTD. 3,655,381.97 4,120,195.76 7,775,577.73
50,956 54,536 105,492 DEUTSCHE BANK 3,364,418.82 3,593,978.39 6,958,397.21
30,786 34,794 65,580 DEUTSCHE TELEKOM 1,765,585.72 1,991,669.89 3,757,255.61
48,311 56,083 104,394 ENERGIS PLC 1,967,797.04 2,300,079.71 4,267,876.75
32,395 37,047 69,442 EPCOS AG 1,993,484.64 2,275,440.11 4,268,924.75
14,773 16,803 31,576 EQUANT 1,430,688.23 1,624,204.05 3,054,892.28
84,489 88,170 172,659 ERICSSON PHONE 4,071,313.69 4,248,691.88 8,320,005.57
3,114 3,406 6,520 FANCL CORPORATION 1,105,489.85 1,206,607.26 2,312,097.11
58,645 64,805 123,450 FANUC 4,888,521.13 5,390,637.89 10,279,159.02
30,764 34,701 65,465 FRANCE TELECOM 3,572,096.64 4,021,608.99 7,593,705.63
71,631 81,460 153,091 FUJITSU 2,542,946.16 2,885,796.45 5,428,742.61
9,500,000 1,500,000 11,000,000 GE INT'L CP 12/02/99 9,498,556.00 1,499,543.31 10,998,099.31
3,500,000 0 3,500,000 GE INT'L CP 12/16/99 3,491,876.50 0.00 3,491,876.50
247,370 0 247,370 GENERAL ELECTRIC 3,804,628.08 0.00 3,804,628.08
30 0 30 GLAXO WELLCOME 900.29 0.00 900.29
10,711,702 15,696,416 26,408,118 GOLDMAN SACHS 10,711,702.28 15,696,416.07 26,408,118.35
29,457 33,027 62,484 HEINEKEN 1,426,378.64 1,596,220.53 3,022,599.17
97,650 109,917 207,567 HENNES & MAURITZ, CL B 3,100,729.15 3,491,056.09 6,591,785.24
1,942 2,233 4,175 HIKARI TSUSHIN 3,047,170.74 3,496,402.52 6,543,573.26
25,532 26,475 52,007 HONDA MOTOR 1,051,626.95 1,088,173.08 2,139,800.03
175,280 196,156 371,436 HSBC HLDGS - NEW (HKD) 2,324,728.30 2,601,460.08 4,926,188.38
224,003 264,762 488,765 HUTCHISON WHAMPOA 2,754,608.10 3,255,647.44 6,010,255.54
50,987 56,315 107,302 ING GROEP 2,872,683.04 3,166,866.79 6,039,549.83
9,038 10,398 19,436 INTERNET INITIATIVE ADR 863,270.22 993,171.47 1,856,441.69
510,052 599,579 1,109,631 INVENSYS PLC 2,379,916.65 2,769,356.26 5,149,272.91
</TABLE>
72
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
449,007 513,000 962,007 ITOCHU CORP 2,677,221.30 3,052,345.31 5,729,566.61
575,591 678,443 1,254,034 JOHNSON ELECTRIC HLDGS 4,113,481.91 4,848,246.51 8,961,728.42
29,850 0 29,850 KONINKLIJKE AHOLD ADR 955,200.00 0.00 955,200.00
841,069 475,002 1,316,071 LI & FUNG LTD 1,933,180.74 1,091,721.85 3,024,902.59
40,745 47,835 88,580 LINDE 2,038,736.38 2,384,149.62 4,422,886.00
135,099 151,611 286,710 LOGICA 3,270,613.37 3,804,376.92 7,074,990.29
2,070 0 2,070 L'OREAL 1,364,649.16 0 1,364,649.16
27,213 30,591 57,804 MANNESMANN 5,666,190.72 6,357,493.08 12,023,683.80
0 276,425 276,425 MARCONI 0.00 3,528,704.27 3,528,704.27
622,428 713,000 1,335,428 MARUBENI CORP 2,423,300.15 2,770,082.83 5,193,382.98
32,442 36,544 68,986 MAYR-MELNHOF KARTON AG 1,354,918.07 1,523,347.39 2,878,265.46
355,798 398,199 753,997 NATIONAL GRID CO 2,737,563.71 3,063,244.86 5,800,808.57
91,798 198,993 290,791 NATL AUSTRALIA BANK 1,323,645.18 2,871,464.56 4,195,109.74
17,300 0 17,300 NATL AUSTRALIA BANK ADR 1,253,168.75 0.00 1,253,168.75
354,812 407,332 762,144 NATSTEEL ELECTRONICS LTD 1,467,386.73 1,685,116.76 3,152,503.49
113,788 126,851 240,639 NEC 2,661,413.95 2,960,704.05 5,622,118.00
1,100 1,150 2,250 NESTLE SA 1,984,243.04 2,068,851.07 4,053,094.11
60,009 67,545 127,554 NIHON UNISYS 2,301,021.77 2,584,536.57 4,885,558.34
162,807 189,827 352,634 NIKKO SECURITIES 2,027,703.15 2,359,252.50 4,386,955.65
9,443 10,059 19,502 NINTENDO (7974.T) 1,575,222.42 1,674,448.68 3,249,671.10
36,043 41,394 77,437 NOKIA ADR 4,980,692.06 5,720,133.38 10,700,825.44
2,735 3,045 5,780 NOVARTIS, REGISTERED 4,273,329.76 4,744,883.82 9,018,213.58
56 66 122 NTT 1,005,001.47 1,181,973.51 2,186,974.98
235 292 527 NTT MOBILE 8,250,465.82 10,230,069.80 18,480,535.62
891 971 1,862 OPENTV COPRORATION 72,438.30 75,009.75 147,448.05
168,731 189,261 357,992 PEARSON 4,038,974.72 4,515,515.75 8,554,490.47
21,153 23,274 44,427 PHARMACIA UPJOHN 1,156,804.69 1,272,796.88 2,429,601.57
90,394 99,078 189,472 POHANG IRON & STEEL ADR 3,248,534.38 3,560,615.63 6,809,150.01
0 25,023 25,023 POLSKI KONCERN NAFTO -GDR 0 258,237.36 258,237.36
21,399 0 21,399 POLSKI KONCERN NAFTO USD 220,944.68 0.00 220,944.68
181,800 207,000 388,800 QXL PLC 1,263,710.45 1,434,148.16 2,697,858.61
</TABLE>
73
<PAGE> 217
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
302 342 644 ROCHE HOLDINGS - GENUS 3,654,607.34 4,127,519.12 7,782,126.46
41,192 73,579 114,771 ROYAL DUTCH PETRO 2,428,028.83 4,328,847.60 6,756,876.43
24,400 0 24,400 ROYAL DUTCH PETRO-NY SHRS 1,415,200.00 0 1,415,200.00
86,468 101,819 188,287 SANWA BANK 1,051,488.87 1,235,558.27 2,287,047.14
1 0 1 SECURITY LENDING 1 0 1.00
34,595 36,786 71,381 SEVEN ELEVEN 5,631,823.09 5,975,900.72 11,607,723.81
47,901 56,483 104,384 SIEMENS 4,837,085.14 5,692,910.58 10,529,995.72
323,136 362,523 685,659 SINGAPORE AIRLINES 3,268,855.70 3,668,437.72 6,937,293.42
71,930 81,168 153,098 SINGAPORE PRESS HLDGS 1,348,286.22 1,521,920.84 2,870,207.06
13,420 15,231 28,651 SMC 2,371,564.19 2,685,937.63 5,057,501.82
16,600 0 16,600 SMITHKLINE BEECH. (ADR) 1,103,900.00 0 1,103,900.00
15,813 106,270 122,083 SMITHKLINE BEECHAM 211,749.66 1,418,368.63 1,630,118.29
8,090 8,775 16,865 SOFTBANK CORP 5,847,141.32 6,328,886.86 12,176,028.18
67,396 77,018 144,414 SONERA 2,788,232.37 3,180,273.98 5,968,506.35
34,725 38,782 73,507 SONY CORP 6,436,231.24 7,173,064.32 13,609,295.56
30,755 32,783 63,538 ST MICROELECTRONICS 4,188,461.94 4,456,203.26 8,644,665.20
94,755 108,190 202,945 STANDARD CHARTERED BANK 1,288,534.76 1,466,395.43 2,754,930.19
75,658 89,094 164,752 SUMITOMO BANK 1,161,172.60 1,364,506.22 2,525,678.82
13,307 0 13,307 SVENSKA CELL AB B 370,117.08 0.00 370,117.08
33,453 53,143 86,596 SVENSKA CELLULOSA AB-A SH 924,550.75 1,469,068.77 2,393,619.52
280,652 306,357 587,009 SWIRE PACIFIC A 1,611,779.45 1,759,304.49 3,371,083.94
1,279 1,448 2,727 SWISS REINSURANCE, REG 2,615,879.87 2,953,554.72 5,569,434.59
83,836 92,411 176,247 TAIWAN SEMICONDUCTOR ADR 3,002,376.75 3,309,468.94 6,311,845.69
73,817 81,810 155,627 TAKEDA CHEMICAL 4,357,932.14 4,819,651.13 9,177,583.27
9,977 11,196 21,173 TAKEFUJI CORP 1,428,500.54 1,599,662.87 3,028,163.41
0 0 0 TECHNOST 0 0.00 0.00
0 0 0 TECNOST-FLOAT 6/23/04 0.00 0.00 0.00
281,583 318,260 599,843 TELECOM ITALIA MOB 2,215,675.26 2,499,534.82 4,715,210.08
92,786 266,416 359,202 TELECOM ITALIA SPA 1,024,011.53 2,934,675.96 3,958,687.49
19,700 0 19,700 TELECOM ITALIA SPA-SP ADR 2,125,137.50 0 2,125,137.50
60,074 179,738 239,812 TELEFONICA 1,253,262.83 3,742,602.00 4,995,864.83
</TABLE>
74
<PAGE> 218
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1,184 0 1,184 TELEFONICA - NEW 19,767.64 0.00 19,767.64
30,704 0 30,704 TELEFONICA DE ESPANA 1,907,486.00 0 1,907,486.00
28,541 33,100 61,641 TELEFONOS DE MEXICO ADR 2,641,826.31 3,063,818.75 5,705,645.06
6,482 7,450 13,932 TERRA NETWORKS SA 223,700.61 256,620.81 480,321.42
6,560 7,377 13,937 THOMSON MULTIMEDIA 284,562.30 319,396.95 603,959.25
257,586 291,450 549,036 THUS PLC 1,613,514.09 1,824,278.03 3,437,792.12
28,699 31,655 60,354 TOKYO ELECTRONICS 2,983,322.55 3,283,680.56 6,267,003.11
29,759 38,466 68,225 TOTAL FINA 3,965,758.14 5,116,416.71 9,082,174.85
8,458 0 8,458 TOTAL FINA ADR 559,285.25 0.00 559,285.25
10,765 11,953 22,718 UBS AG - REGISTERED 2,951,452.79 3,268,345.32 6,219,798.11
32,365 36,399 68,764 UPM - KYMMENE 1,083,973.76 1,216,774.40 2,300,748.16
85,455 99,974 185,429 VIAG AG 1,413,794.87 1,650,872.17 3,064,667.04
23,621 26,594 50,215 VIVENDI 1,894,394.75 2,128,792.46 4,023,187.21
66,088 74,412 140,500 WOLTERS KLUWER - CVA 1,996,753.75 2,243,997.32 4,240,751.07
129,815 152,303 282,118 WPP GROUP 1,909,471.20 2,253,505.33 4,162,976.53
11 13 24 YAHOO JAPAN CORPORATION 7,766,990.29 9,159,854.34 16,926,844.63
0 5,000,000 5,000,000 OGE ENERGY CORP 5.81% 0 4,994,000.00 4,994,000.00
0 182,000 182,000 BEAR STEARNS TRIPARTY 5.83% 0 182,000.00 182,000.00
0 17,669,000 17,669,000 LEHMAN TRIPARTY 5.83% 0 17,669,000.00 17,669,000.00
35,534,691.28 53,844,116.00 89,378,807.28 312,533,778.37 365,314,137.48 677,847,915.85
</TABLE>
75
<PAGE> 219
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Balanced
Parkstone Armada Allocation
Balanced Balanced Fund
Allocation Allocation Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 180,126 77,717 257,843
------- ------ --------
ASSETS
Cash 0 66 66
Accrued Income 630 325 955
Investment Securities Sold 2,065 2,359 4,424
Cap Shares Sold 2 0 2
Other Assets 31 39 70
TOTAL ASSETS: 182,854 80,506 263,360
------- ------ -------
LIABILITIES
Income Payable 0 0 0
Capital Gain Payable 0 0 0
Investment Securities Purchased 789 686 1,475
Capital Shares Redeemed Payable 9 0 9
Accrued Expense Payable 238 86 324
Other Payables 13,187 0 13,187
TOTAL LIABILITIES: 14,223 772 14,995
------- ------ -------
TOTAL NET ASSETS: 168,631 79,734 248,365
</TABLE>
76
<PAGE> 220
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Balanced
Parkstone Armada Allocation
Balanced Balanced Fund
Allocation Allocation Proforma Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends 187 0
Interest 2,788 1,016 0 3,985
------ ----- --------- ------
Less Foreign Tax (6)
TOTAL INCOME: 2,788 1,197 0 3,985
------ ----- --------- ------
EXPENSES:
Administrator Fees 224 27 (69) A 182
Investment Advisory Fees 831 294 - 1,125
Waiver of Investment Advisory Fees (156) 0 - (156)
Transfer Agent Fees 60 6 - 66
Custodian Fees 30 1 - 31
Professional Fees (Audit + Legal) 10 1 (5) A 6
Trustee (Directors) Fees 1 1 2
Registration Fees 13 2 - 15
12b-1 Fees 46 12 15 A 73
Shareholder Servicing Fees 0 3 18 A 21
Printing Expenses 11 1 - 12
Miscellaneous Expenses 4 7 - 11
TOTAL EXPENSES: (1,074) (355) (41) (1,388)
------ ----- ------ ------
NET INVESTMENT INCOME: 1,714 842 (41) 2,597
------ ----- ------ ------
Net Realized Gains (Losses) on Investments 13,133 157 0 13,290
Net Unrealized Appreciation (Depreciation)
of Investment Securities 6,334 5,742 0 12,076
------ ----- ------ ------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: 19,467 5,899 0 25,366
------ ----- ------ ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 21,181 6,741 (41) 27,963
------ ----- ------ ------
</TABLE>
A - To adjust fees to reflect Armada's fee structure
77
<PAGE> 221
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
Balanced
Parkstone Armada Allocation
Balanced Balanced Fund
Allocation Allocation Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 1,714 842 2,556
Net Realized Gain (Loss) on Securities Sold 13,133 157 13,290
Net Increase (Decrease) in Unrealized
Appreciation of Assets 6,334 5,742 12,076
------- ------ -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: 21,181 6,741 27,922
------- ------ -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (1,714) (841) (2,555)
Investor A/Class A Shares (138) (21) (159)
Investor B/Class B Shares (30) (2) (32)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (1,882) (864) (2,746)
------- ------ -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 12,278 8,833 21,111
Shares Issued in Lieu of Cash Distributions 1,562 841 2,403
Shares Redeemed (59,149) (24,949) (84,098)
Net Institutional/Class I Share Transactions (45,309) (15,275) (60,584)
------- ------ -------
Investor A/Class A Shares
Shares Issued 468 2,904 3,372
Shares Issued in Lieu of Cash Distributions 131 21 152
Shares Redeemed (3,582) (739) (4,321)
Net Investor A/Class A Share Transactions (2,983) 2,186 (797)
------- ------ -------
Investor B/Class B Shares
Shares Issued 26 95 121
Shares Issued in Lieu of Cash Distributions 29 2 31
Shares Redeemed (1,117) (29) (1,146)
Net Investor B/Class B Share Transactions (1,062) 68 (994)
------- ------ -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (49,354) (13,021) (62,375)
------- ------ -------
BEGINNING OF PERIOD: 198,686 86,878 285,564
------- ------ -------
END OF PERIOD: 168,631 79,734 248,365
------- ------ -------
</TABLE>
78
<PAGE> 222
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA BALANCED ALLOCATION/
PARKSTONE BALANCED ALLOCATION
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
- 2,205.00 2,205.00 BCE INC.-ADR - 149,113.13 149,113.13
5,100.00 10,350.00 15,450.00 ANNUITY & LIFE 145,350.00 294,975.00 440,325.00
31.00 58.00 89.00 OPEN TV CORP CL. A 2,394.75 4,480.50 6,875.25
12,200.00 24,650.00 36,850.00 SCOTTISH ANNUITY & LIFE 103,700.00 209,525.00 313,225.00
12,400.00 25,000.00 37,400.00 ASM INTER'L N.V. 201,500.00 406,250.00 607,750.00
6,000.00 12,100.00 18,100.00 ACT MANUFACTURING INC 183,375.00 369,806.25 553,181.25
3,500.00 7,050.00 10,550.00 ADELPHIA BUSINESS SOLUT. 109,375.00 220,312.50 329,687.50
3,050.00 6,150.00 9,200.00 ADVANCED DIGITAL INFO. 137,059.38 276,365.63 413,425.01
550.00 1,100.00 1,650.00 AFFYMETRIX INC 53,900.00 107,800.00 161,700.00
617.00 1,288.00 1,905.00 BATM ADVANCED COMM 40,423.46 84,107.39 124,530.85
4,839.00 10,045.00 14,884.00 BOC GROUP 99,981.26 207,023.02 307,004.28
3,202.00 7,329.00 10,531.00 SMITHKLINE BEECHAM 42,877.53 97,818.99 140,696.52
4,509.00 10,307.00 14,816.00 BRITISH TELECOM PLC 90,677.17 207,169.61 297,846.78
950.00 1,900.00 2,850.00 ALLAIRE CORPORATION 144,281.25 288,562.50 432,843.75
3,500.00 7,200.00 10,700.00 ALLTEL CORPORATION 302,750.00 622,800.00 925,550.00
6,100.00 12,000.00 18,100.00 ALTERA CORPORATION 328,637.50 646,500.00 975,137.50
1,607.00 3,326.00 4,933.00 ENERGIS PLCCK 65,456.10 136,406.13 201,862.23
12,134.00 26,739.00 38,873.00 NATIONAL GRID CO 93,360.83 205,696.41 299,057.24
3,925.00 9,198.00 13,123.00 BASS 44,342.84 103,573.16 147,916.00
- 8,176.65 8,176.65 BPS BRITISH AEROSPACE PLC - 46,719.88 46,719.88
500,000.00 825,000.00 1,325,000.00 AMERICAN GREETINGS 456,250.00 752,812.50 1,209,062.50
5,968.00 12,125.00 18,093.00 AMERICAN INT'L GROUP 616,196.00 1,251,906.25 1,868,102.25
8,076.00 18,230.00 26,306.00 ALLIED ZURICH 97,949.57 221,391.50 319,341.07
5,610.00 12,613.00 18,223.00 COMPASS GROUP 68,130.39 152,975.80 221,106.19
</TABLE>
79
<PAGE> 223
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
4,400.00 5,900.00 10,300.00 ANALOG DEVICES INC 252,725.00 338,881.25 591,606.25
1,600.00 3,200.00 4,800.00 ANCHOR GAMING 88,100.00 176,200.00 264,300.00
1,550.00 3,150.00 4,700.00 ANCOR COMMUNICATIONS 93,968.75 190,968.75 284,937.50
3,300.00 6,700.00 10,000.00 ANTEC CORPORATION 184,800.00 375,200.00 560,000.00
100,000.00 - 100,000.00 ARCHER DANIELS 98,125.00 - 98,125.00
1,545.00 3,150.00 4,695.00 COLT TELECOM GROUP 58,437.44 118,852.97 177,290.41
225,000.00 450,000.00 675,000.00 ARROW ELECTRONIC 199,125.00 398,250.00 597,375.00
1,150.00 2,300.00 3,450.00 ARTHROCARE CORPORATION 69,575.00 139,150.00 208,725.00
4,950.00 10,000.00 14,950.00 ATLAS AIR INC 124,678.13 251,875.00 376,553.13
6,050.00 12,200.00 18,250.00 AUDIOVOX CORP. 179,987.50 362,950.00 542,937.50
4,604.00 10,267.00 14,871.00 LOGICA 115,909.27 257,629.98 373,539.25
5,500.00 11,100.00 16,600.00 AUTO DATA PROCESS 271,562.50 548,062.50 819,625.00
4,900.00 9,900.00 14,800.00 AVERY DENNISON CORP. 290,937.50 587,812.50 878,750.00
1,552.00 1,099.00 2,651.00 BCE INC. 104,954.00 74,045.24 178,999.24
4,500.00 9,100.00 13,600.00 BJ'S WHOLESALE CLUB INC 168,187.50 340,112.50 508,300.00
5,716.00 12,994.00 18,710.00 PEARSON 136,825.95 310,019.56 446,845.51
8,010.00 17,564.00 25,574.00 BANK OF IRELAND 66,057.99 144,840.45 210,898.44
12,265.00 26,705.00 38,970.00 BRITISH PETROLEUM CO PLC 125,041.07 272,424.49 397,465.56
18,809.00 40,429.00 59,238.00 SIEBE PLC 87,763.31 186,734.87 274,498.18
3,182.00 7,379.00 10,561.00 STANDARD CHARTERED BANK 43,270.73 100,014.16 143,284.89
6,800.00 14,700.00 21,500.00 QXL PLC 47,267.50 101,845.30 149,112.80
8,494.00 17,120.00 25,614.00 THUS PLC 144A 53,206.26 107,159.51 160,365.77
- 2,582.50 2,582.50 BPS BRITISH AERO LOAN STK - 3,876.64 3,876.64
- 19,068.99 19,068.99 BPS MARCONI PLC - 243,425.26 243,425.26
4,000.00 8,100.00 12,100.00 BIOMATRIX INC 94,000.00 190,350.00 284,350.00
4,677.00 8,264.00 12,941.00 WPP GROUP 68,794.81 122,275.78 191,070.59
30,000.00 300,000.00 330,000.00 BRADLEY OPER LTD PRTNSHP 28,536.72 285,367.20 313,903.92
3,100.00 4,000.00 7,100.00 BRISTOL-MYERS SQUIBB CO 226,493.75 292,250.00 518,743.75
300,000.00 785,000.00 1,085,000.00 BRUNSWICK CORP 6.75% 284,250.00 743,787.50 1,028,037.50
2,800.00 5,650.00 8,450.00 BURR-BROWN CORP 124,075.00 250,365.63 374,440.63
4,100.00 7,550.00 11,650.00 BUSINESS OBJECTS-ADR 362,850.00 668,175.00 1,031,025.00
2,200.00 4,450.00 6,650.00 C-COR.NET CORPORATION 112,337.50 227,228.13 339,565.63
5,500.00 11,100.00 16,600.00 CTS CORP. 441,031.25 890,081.25 1,331,112.50
</TABLE>
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1,850.00 3,700.00 5,550.00 CAL DIVE INTERNATIONAL 67,293.75 134,587.50 201,881.25
2,700.00 5,450.00 8,150.00 CALPINE CORPORATION 159,300.00 321,550.00 480,850.00
4,100.00 8,300.00 12,400.00 CARDINAL HEALTH INC 214,481.25 434,193.75 648,675.00
160,000.00 350,000.00 510,000.00 CHAMP 6.71% SER 1997-2 A5 155,866.40 340,957.75 496,824.15
26.00 - 26.00 CHARTERED SEMICONDUCT ADR 1,384.50 - 1,384.50
5,250.00 10,600.00 15,850.00 CHEAP TICKETS INC. 87,609.38 176,887.50 264,496.88
4,200.00 8,500.00 12,700.00 CHEVRON CORPORATION 371,962.50 752,781.25 1,124,743.75
4,250.00 8,600.00 12,850.00 CHILDREN'S PLACE STORES 104,921.88 212,312.50 317,234.38
3,450.00 6,950.00 10,400.00 CHIREX CORP 119,887.50 241,512.50 361,400.00
2,350.00 4,750.00 7,100.00 CHURCH AND DWIGHT INC 65,800.00 133,000.00 198,800.00
12,200.00 44,400.00 56,600.00 CISCO SYSTEMS INC 1,088,087.50 3,959,925.00 5,048,012.50
2,550.00 5,150.00 7,700.00 CITADEL COMMUNICATIONS 127,659.38 257,821.88 385,481.26
300,000.00 765,000.00 1,065,000.00 CITICORP 280,500.00 715,275.00 995,775.00
75,000.00 - 75,000.00 CITICORP 75,000.00 - 75,000.00
2,450.00 4,950.00 7,400.00 CLARIFY INC. 228,347.66 461,355.47 689,703.13
5,100.00 10,500.00 15,600.00 COASTAL CORP 179,775.00 370,125.00 549,900.00
4,600.00 9,300.00 13,900.00 COCA-COLA COMPANY 309,637.50 626,006.25 935,643.75
1,850.00 3,750.00 5,600.00 COLORADO MEDTECH INC 23,471.88 47,578.13 71,050.01
11,600.00 23,900.00 35,500.00 COMCAST SPECIAL A 524,175.00 1,079,981.25 1,604,156.25
2,800.00 6,100.00 8,900.00 COMERICA INC 148,400.00 323,300.00 471,700.00
350,000.00 1,000,000.00 1,350,000.00 COMMERCIAL NET 343,437.50 981,250.00 1,324,687.50
8,750.00 17,700.00 26,450.00 COMMSCOPE INC. 368,593.75 745,612.50 1,114,206.25
470,000.00 1,275,000.00 1,745,000.00 COMPUTER ASSOCIATES INTL 453,550.00 1,230,375.00 1,683,925.00
8,100.00 17,700.00 25,800.00 CONCORD EFS INC 214,650.00 469,050.00 683,700.00
8,000.00 16,300.00 24,300.00 CONOCO INC CLASS B 209,500.00 426,856.25 636,356.25
2,000.00 4,050.00 6,050.00 CORPORATE EXECUTIVE BOARD 93,000.00 188,325.00 281,325.00
3,500.00 7,200.00 10,700.00 COSTCO WHOLESALE CORP 320,906.25 660,150.00 981,056.25
500,000.00 2,065,000.00 2,565,000.00 COUNTRYWIDE HOME 488,750.00 2,018,537.50 2,507,287.50
2,250.00 4,550.00 6,800.00 CREDENCE SYSTEMS CORP 130,359.38 263,615.63 393,975.01
410,000.00 1,200,000.00 1,610,000.00 FIRST BOSTON MTG SECS 403,144.80 1,179,936.00 1,583,080.80
4,250.00 8,550.00 12,800.00 CULLEN FROST BANKERS 121,125.00 243,675.00 364,800.00
200,000.00 650,000.00 850,000.00 CUMMINS ENGINE, (6.45%) 189,000.00 614,250.00 803,250.00
5,650.00 11,450.00 17,100.00 CUMULUS MEDIA INC. 226,000.00 458,000.00 684,000.00
</TABLE>
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
3,950.00 7,950.00 11,900.00 CYMER INC. 158,000.00 318,000.00 476,000.00
5,350.00 10,800.00 16,150.00 DII GROUP INC 337,718.75 681,750.00 1,019,468.75
75,000.00 - 75,000.00 DAIMLER CHRYSLER 74,906.25 - 74,906.25
7,500.00 15,100.00 22,600.00 DATASCOPE CORP 278,203.13 560,115.63 838,318.76
5,100.00 10,500.00 15,600.00 DAYTON HUDSON CORP 359,868.75 740,906.25 1,100,775.00
2,100.00 4,200.00 6,300.00 DIAMOND TECH 110,250.00 220,500.00 330,750.00
1,100.00 2,250.00 3,350.00 DIGEX INC 36,850.00 75,375.00 112,225.00
3,650.00 7,350.00 11,000.00 DIGITAL RIVER. 111,325.00 224,175.00 335,500.00
4,400.00 8,900.00 13,300.00 EMC CORPORATION 367,675.00 743,706.25 1,111,381.25
250,000.00 - 250,000.00 EOP OPERATING LTD (6.5%) 237,812.50 - 237,812.50
974.00 - 974.00 EBOOKERS.COM ADR 22,402.00 - 22,402.00
1,950.00 3,900.00 5,850.00 EGAINS COMMUNICATION 81,900.00 163,800.00 245,700.00
4,600.00 9,300.00 13,900.00 EMERSON ELECTRIC CO 262,200.00 530,100.00 792,300.00
2,400.00 4,850.00 7,250.00 ENZON INC 81,000.00 163,687.50 244,687.50
2,814.00 5,990.00 8,804.00 ERICSSON L M ADR 135,599.63 288,643.13 424,242.76
3,950.00 7,950.00 11,900.00 EXAR CORPORATION 192,068.75 386,568.75 578,637.50
440,000.00 1,050,000.00 1,490,000.00 EXCEL REALTY TR INC 430,650.00 1,027,687.50 1,458,337.50
4,800.00 9,700.00 14,500.00 EXPEDITORS INTL WASH INC 195,600.00 395,275.00 590,875.00
7,100.00 14,400.00 21,500.00 EXXON CORP 563,118.75 1,142,100.00 1,705,218.75
3,100.00 6,300.00 9,400.00 F.Y.I. INC. 99,200.00 201,600.00 300,800.00
3,550.00 7,200.00 10,750.00 FAIRCHILD SEMICON INT'L-A 99,400.00 201,600.00 301,000.00
287,729.06 - 287,729.06 FHLMC POOL #C18271 281,974.48 - 281,974.48
7,100.00 14,600.00 21,700.00 FREDDIE MAC 350,562.50 720,875.00 1,071,437.50
7,100.00 13,100.00 20,200.00 FANNIE MAE 473,037.50 872,787.50 1,345,825.00
425,000.00 1,100,000.00 1,525,000.00 FEDERAL RLTY INVS TRST 420,269.75 1,087,757.00 1,508,026.75
780,575.42 2,932,416.30 3,712,991.72 FNMA (POOL #376750) 765,939.63 2,868,255.03 3,634,194.66
816,065.24 - 816,065.24 FNMA POOL # 437810 757,214.25 - 757,214.25
196,890.37 492,225.89 689,116.26 FNMA POOL # 437972 182,691.51 456,692.10 639,383.61
486,549.96 - 486,549.96 FNMA POOL # 437979 451,310.10 - 451,310.10
1,804,653.60 - 1,804,653.60 FNMA POOL #440148 1,722,182.63 - 1,722,182.63
519,180.18 1,656,005.76 2,175,185.94 FNMA POOL # 453931 495,329.04 1,579,928.86 2,075,257.90
1,328,194.98 - 1,328,194.98 FNMA POOL #484693 1,232,312.58 - 1,232,312.58
- 3,823,086.25 3,823,086.25 FNMA 484731 6.0% 03/01/29 - 3,547,097.65 3,547,097.65
</TABLE>
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
177.46 390.82 568.28 FNMA POOL #513370 169.36 372.87 542.23
310,000.00 600,000.00 910,000.00 FIRST CHICAGO CORP 309,225.00 598,500.00 907,725.00
300,000.00 - 300,000.00 FIRST MD BANCORP 7.20% 295,500.00 - 295,500.00
400,000.00 1,180,000.00 1,580,000.00 FIRST 99 - A A4 391,930.00 1,156,193.50 1,548,123.50
340,000.00 800,000.00 1,140,000.00 FIRST UNION CAP 7.95% 331,075.00 779,000.00 1,110,075.00
325,000.00 705,000.00 1,030,000.00 FIRST UNION CORP 322,968.75 700,593.75 1,023,562.50
135,000.00 290,000.00 425,000.00 FLAGSHIP 99-2 A3 134,704.76 289,365.77 424,070.53
275,000.00 - 275,000.00 FORD MOTOR CREDIT 271,906.25 - 271,906.25
320,000.00 800,000.00 1,120,000.00 FORD MOTOR CREDIT 322,265.28 805,000.00 1,127,265.28
5,000.00 10,100.00 15,100.00 FOREST OIL CORP 57,187.50 115,518.75 172,706.25
290,000.00 840,000.00 1,130,000.00 GEHEL 99-1 A4 6.185% 281,922.05 816,601.80 1,098,523.85
158,778.62 822,927.23 981,705.85 GECMS99 -1 A1 (6.50%) 145,977.10 752,890.53 898,867.63
- 633,712.42 633,712.42 GNMA 345871 6.5% 09/15/23 - 603,408.29 603,408.29
- 692,384.69 692,384.69 GNMA 374650 6.5% 12/15/23 - 659,274.85 659,274.85
1,300,002.69 4,500,002.01 5,800,004.70 GNMA POOL# 7.50 1,295,533.93 4,493,513.01 5,789,046.94
236,282.13 - 236,282.13 GNMA POOL#472939 224,983.12 - 224,983.12
155,000.00 335,000.00 490,000.00 GNMA POOL# 481632 154,756.65 334,685.10 489,441.75
1,186,690.27 - 1,186,690.27 GNMA POOL# 498651 1,129,942.74 - 1,129,942.74
928,577.61 - 928,577.61 GNMA POOL#510422 927,704.75 - 927,704.75
392,005.35 3,436,637.38 3,828,642.73 GNMA POOL# 780213 391,879.91 3,435,537.66 3,827,417.57
6,100.00 12,400.00 18,500.00 GTE CORP 445,300.00 905,200.00 1,350,500.00
300,000.00 485,000.00 785,000.00 GABLES REALTY 283,381.20 458,132.94 741,514.14
6,600.00 12,700.00 19,300.00 GAP INC 267,300.00 514,350.00 781,650.00
6,150.00 12,450.00 18,600.00 GELTEX PHARMACEUTICALS 65,343.75 132,281.25 197,625.00
5,700.00 11,500.00 17,200.00 GENERAL ELECTRIC CO 741,000.00 1,495,000.00 2,236,000.00
8,379.00 - 8,379.00 GENERAL ELECTRIC 128,871.65 - 128,871.65
50,000.00 - 50,000.00 GMAC 52,750.00 - 52,750.00
8,950.00 18,050.00 27,000.00 GENTEX CORP 167,253.13 337,309.38 504,562.51
6,000.00 12,200.00 18,200.00 GILLETTE COMPANY 241,125.00 490,287.50 731,412.50
290,000.00 610,000.00 900,000.00 GREENPOINT MAN HOUSING 273,361.25 575,001.25 848,362.50
348.00 753.00 1,101.00 ALTRAN TECHNOLOGIES SA 165,876.98 358,244.32 524,121.30
1,060.00 2,326.00 3,386.00 AXA-UAP 143,183.02 313,597.66 456,780.68
155,000.00 390,000.00 545,000.00 HSBC HOLDING PLC 155,387.50 391,739.01 547,126.51
</TABLE>
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1,176.00 2,598.00 3,774.00 ASSIC GENERALI 33,929.58 74,814.83 108,744.41
175,000.00 - 175,000.00 HALLIBURTON CO 157,281.25 - 157,281.25
4,900.00 10,100.00 15,000.00 HARLEY DAVIDSON INC 298,900.00 616,100.00 915,000.00
501.00 1,110.00 1,611.00 CASTORAMA 130,395.47 288,353.49 418,748.96
3,350.00 6,800.00 10,150.00 HELIX TECHNOLOGY CORP. 135,622.66 275,293.75 410,916.41
452.00 977.00 1,429.00 CREDIT SUISSE, REG 84,753.56 182,702.00 267,455.56
2,500.00 5,100.00 7,600.00 HEWLETT PACKARD CO 237,187.50 483,862.50 721,050.00
976.00 2,156.00 3,132.00 BAYER VEREINSBANK 60,650.67 133,724.81 194,375.48
7,200.00 14,525.00 21,725.00 HOME DEPOT 569,250.00 1,148,382.81 1,717,632.81
11,050.00 22,300.00 33,350.00 HOOPER HOLMES INC 261,056.25 526,837.50 787,893.75
8,700.00 17,550.00 26,250.00 ICG COMMUNICATIONS INC 164,756.25 332,353.13 497,109.38
560,000.00 1,600,000.00 2,160,000.00 IMCHE 1997-7 A5 553,602.00 1,581,720.00 2,135,322.00
6,350.00 12,800.00 19,150.00 IMPERIAL BANCORP 152,400.00 307,200.00 459,600.00
1,131.00 2,496.00 3,627.00 MAYR-MELNHOF KARTON AG 47,235.45 104,046.49 151,281.94
1,350.00 2,700.00 4,050.00 INFOSPACE.COM 137,278.13 274,556.25 411,834.38
3,450.00 7,000.00 10,450.00 INTEGRATED DEVICE TECH 81,290.63 164,937.50 246,228.13
6,600.00 13,400.00 20,000.00 INTEL CORP 506,137.50 1,027,612.50 1,533,750.00
3,450.00 7,000.00 10,450.00 INTERMEDIA COMMUNICATIONS 96,168.75 195,125.00 291,293.75
4,000.00 8,100.00 12,100.00 IBM CORPORATION 412,250.00 834,806.25 1,247,056.25
5,400.00 10,700.00 16,100.00 INTERNATIONAL PAPER CO 281,812.50 558,406.25 840,218.75
358.00 752.00 1,110.00 INTERNET INITI JAPAN ADR 34,194.59 71,827.75 106,022.34
37.00 79.00 116.00 NESTLE SA 66,742.72 142,121.07 208,863.79
7,950.00 16,050.00 24,000.00 JACK IN THE BOX INC 167,446.88 338,053.13 505,500.01
1,979.00 4,371.00 6,350.00 AVENTIS 122,779.53 270,668.96 393,448.49
11.00 20.00 31.00 ROCHE HOLDINGS 133,114.84 241,375.39 374,490.23
266.00 519.00 785.00 CIE DE ST GOBAIN 45,349.60 88,315.43 133,665.03
3,300.00 6,600.00 9,900.00 JOHNSON & JOHNSON 342,375.00 684,750.00 1,027,125.00
45.00 98.00 143.00 SWISS REINSURANCE,REG 92,036.43 199,895.28 291,931.71
1,737.00 1,953.00 3,690.00 SVENSKA CELLULOSA AB-A SH 48,006.00 53,988.13 101,994.13
- 1,692.00 1,692.00 SEK SVENSKA CELLULOSA AB - 47,071.68 47,071.68
14,188.00 21,054.00 35,242.00 TIM 111,640.26 165,352.88 276,993.14
1,200.00 2,588.45 3,788.45 TOTAL FINA 159,914.98 344,290.23 504,205.21
6,000.00 12,100.00 18,100.00 KING PHARMACEUTICALS INC. 276,750.00 558,112.50 834,862.50
</TABLE>
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
73.00 155.00 228.00 NOVARTIS, REGISTERED 114,059.62 241,529.39 355,589.01
1,121.00 2,476.00 3,597.00 UPM - KYMMENE 37,544.71 82,769.68 120,314.39
1,918.00 4,124.00 6,042.00 ING GROEP 108,062.96 231,912.61 339,975.57
1,107.00 2,378.00 3,485.00 DEUTSCHE TELEKOM 63,486.76 136,120.91 199,607.67
1,074.00 2,328.00 3,402.00 FRANCE TELECOM 124,705.23 269,799.31 394,504.54
2,303.00 5,002.00 7,305.00 ROYAL DUTCH PETRO 135,748.46 294,280.92 430,029.38
278.00 586.00 864.00 ALLIANZ 81,539.79 171,553.61 253,093.40
1,531.00 3,506.00 5,037.00 KONINKLIJKE AHOLD NV 48,820.79 111,588.37 160,409.16
6,385.00 13,827.00 20,212.00 BULGARI SPA (BUG LI) 49,275.09 106,505.47 155,780.56
9,888.00 21,782.00 31,670.00 TELECOM ITALIA SPA 109,126.66 239,937.21 349,063.87
4,600.00 8,700.00 13,300.00 LEXMARK INT'L GROUP INC 381,800.00 722,100.00 1,103,900.00
2,400.00 4,900.00 7,300.00 LILLY (ELI) & CO 172,200.00 351,575.00 523,775.00
1,050.00 2,354.00 3,404.00 HEINEKEN 50,843.52 113,770.65 164,614.17
3,000.00 6,100.00 9,100.00 LOUIS DREYFUS NAT. GAS 54,000.00 109,800.00 163,800.00
406.00 862.00 1,268.00 UBS AG - REGISTERED 111,313.50 235,699.29 347,012.79
250,000.00 - 250,000.00 LUBRIZOL 223,750.00 - 223,750.00
5,400.00 24,300.00 29,700.00 LUCENT TECHNOLOGIES INC 394,537.50 1,775,418.75 2,169,956.25
502.00 1,022.00 1,524.00 EQUANT 48,616.09 98,788.11 147,404.20
8,800.00 24,200.00 33,000.00 MBNA CORP 222,200.00 611,050.00 833,250.00
5,700.00 11,800.00 17,500.00 MCI WORLDCOM INC 471,318.75 975,712.50 1,447,031.25
2,240.00 4,909.00 7,149.00 SONERA 92,670.79 202,705.41 295,376.20
3,750.00 7,600.00 11,350.00 MACROVISION INC 239,531.25 485,450.00 724,981.25
2,283.00 4,990.00 7,273.00 WOLTERS KLUWER - CVA 68,977.56 150,480.39 219,457.95
80.00 177.00 257.00 ADECCO 51,279.47 113,150.37 164,429.84
827.00 1,750.00 2,577.00 VIVENDI 66,325.07 140,083.73 206,408.80
3,572.00 7,516.00 11,088.00 HENNES & MAURITZ, CL B 113,423.50 238,714.46 352,137.96
1,021.00 2,248.00 3,269.00 ST MICROELECTRONICS 139,047.95 305,571.33 444,619.28
1,788.00 3,732.00 5,520.00 SIEMENS 180,553.81 376,147.55 556,701.36
5,416.00 11,870.36 17,286.36 TELEFONICA 112,988.51 247,170.68 360,159.19
1,473.00 3,261.00 4,734.00 LINDE AG 73,703.74 162,531.87 236,235.61
1,688.00 3,676.00 5,364.00 DEUTSCHE BANK 111,451.82 242,252.17 353,703.99
3,207.00 6,158.00 9,365.00 VIAG 53,057.63 101,687.15 154,744.78
2,600.00 5,250.00 7,850.00 MASTEC INC 107,087.50 216,234.38 323,321.88
</TABLE>
85
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
974.00 2,100.00 3,074.00 MANNESMANN 202,802.70 436,426.91 639,229.61
1,086.00 2,320.00 3,406.00 EPCOS AG 66,828.96 142,495.24 209,324.20
224.00 457.00 681.00 THOMSON MULTIMEDIA 9,716.76 19,786.42 29,503.18
237.00 431.00 668.00 TERRA NETWORKS SA 8,179.12 14,846.12 23,025.24
114.00 - 114.00 TELEFONICA - NEW 1,903.30 - 1,903.30
7,000.00 14,200.00 21,200.00 MEDTRONIC INC 272,125.00 552,025.00 824,150.00
5,600.00 11,500.00 17,100.00 MERCK & CO 439,600.00 902,750.00 1,342,350.00
3,750.00 7,550.00 11,300.00 MERCURY COMPUTER SYSTEMS 213,984.38 430,821.88 644,806.26
2,250.00 4,500.00 6,750.00 MERCURY INTERACTIVE 187,031.25 374,062.50 561,093.75
4,650.00 9,400.00 14,050.00 METRIS COMPANIES 147,056.25 297,275.00 444,331.25
9,100.00 18,600.00 27,700.00 MICROSOFT CORP 828,526.56 1,693,471.88 2,521,998.44
750.00 1,550.00 2,300.00 MICROSTRATEGY INC. 91,875.00 189,875.00 281,750.00
2,000.00 4,000.00 6,000.00 MICROMUSE INC 228,750.00 457,500.00 686,250.00
850.00 1,750.00 2,600.00 MILLENNIUM PHARMACEUTICAL 82,742.19 170,351.56 253,093.75
1,758.00 4,265.00 6,023.00 BANK OF TOKYO-MITS 25,446.78 61,605.30 87,052.08
35,153.00 64,529.00 99,682.00 CHINA TELECOM (HONG KONG) 188,756.13 346,472.95 535,229.08
15,330.00 30,006.00 45,336.00 NATSTEEL ELECTRONICS LTD 63,399.88 124,133.66 187,533.54
- 1.00 1.00 YEN YAHOO JAPAN CORP. - 704,604.18 704,604.18
9,250.00 18,700.00 27,950.00 MONACO COACH CORPORATION 198,875.00 402,050.00 600,925.00
300,000.00 - 300,000.00 MONSANTO CO (144A) 292,565.40 - 292,565.40
5,900.00 12,000.00 17,900.00 MONSANTO COMPANY 248,906.25 506,250.00 755,156.25
748.00 1,515.00 2,263.00 BENESSE CORPORATION 179,572.82 362,941.61 542,514.43
21,602.00 45,539.00 67,141.00 JOHNSON ELECTRIC HLDGS 154,379.47 325,427.92 479,807.39
10.00 20.00 30.00 NTT MOBILE 351,083.65 700,689.71 1,051,773.36
109.00 199.00 308.00 FANCL CORPORATION 38,695.69 70,497.61 109,193.30
2,392.00 5,810.00 8,202.00 SINGAPORE PRESS HLDGS 44,836.66 108,938.99 153,775.65
6,452.00 13,645.00 20,097.00 HSBC HLDGS - NEW (HKD) 85,572.50 180,962.72 266,535.22
1,900.00 3,800.00 5,700.00 MORGAN J.P. & COMPANY 249,850.00 499,700.00 749,550.00
550,000.00 1,500,000.00 2,050,000.00 MSC 99-FNV1 A2 (6.53%) 521,380.75 1,421,947.50 1,943,328.25
3,105.00 20,861.86 23,966.86 DBS GROUP HOLDINGS LTD 40,279.08 270,711.19 310,990.27
16,960.00 42,099.00 59,059.00 LI & FUNG LTD 38,982.23 96,758.33 135,740.56
320,000.00 645,000.00 965,000.00 MOTOROLA INC. (7.50%) 317,600.00 640,162.50 957,762.50
6,000.00 - 6,000.00 DBS GROUP HOLDINGS LTD. 77,833.98 - 77,833.98
</TABLE>
86
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<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
4,750.00 9,550.00 14,300.00 NATL COMPUTER SYSTEMS 182,281.25 366,481.25 548,762.50
2,119.00 4,437.00 6,556.00 FANUC 176,635.28 369,080.48 545,715.76
2,219.00 5,706.00 7,925.00 FUJITSU 78,775.91 202,140.37 280,916.28
5,100.00 10,300.00 15,400.00 NATIONAL INFO CONSORTIUM 134,512.50 271,662.50 406,175.00
7,750.00 15,650.00 23,400.00 NETOBJECTS INC. 105,109.38 212,253.13 317,362.51
13,550.00 27,350.00 40,900.00 NETSILICON INC 179,537.50 362,387.50 541,925.00
69.00 139.00 208.00 HIKARI TSUSHIN 108,267.14 217,644.40 325,911.54
283.00 1,998.00 2,281.00 HONDA MOTOR 11,656.37 82,121.62 93,777.99
380,000.00 1,000,000.00 1,380,000.00 NEW CENTURY HOME EQUITY 375,411.50 987,925.00 1,363,336.50
299,950.83 769,873.79 1,069,824.62 NEW CENTURY EQUITY TRUST 293,830.33 754,164.52 1,047,994.85
285,000.00 670,000.00 955,000.00 NEW CENTURY HOME EQUITY LN 284,020.46 667,697.21 951,717.67
7,776.00 16,299.00 24,075.00 HUTCHISON WHAMPOA 95,622.97 200,420.75 296,043.72
10,995.00 21,998.00 32,993.00 ITOCHU CORP 65,558.11 130,887.90 196,446.01
3,150.00 6,350.00 9,500.00 NICOR INC 109,265.63 220,265.63 329,531.26
1,284.00 2,789.00 4,073.00 NOKIA ADR - CLASS A 177,432.75 385,404.94 562,837.69
15,792.00 31,180.00 46,972.00 MARUBENI CORP 61,483.02 121,137.70 182,620.72
6,449.00 13,573.00 20,022.00 NATL AUSTRALIA BANK 92,988.82 195,858.09 288,846.91
207.00 926.00 1,133.00 NINTENDO (7974.T) 34,530.45 154,144.49 188,674.94
6,023.00 12,265.00 18,288.00 NIKKO SECURITIES 75,014.32 152,434.75 227,449.07
3,352.00 8,959.00 12,311.00 NEC 78,400.71 209,103.18 287,503.89
1.00 3.00 4.00 NTT 17,946.45 53,726.07 71,672.52
2,204.00 4,410.00 6,614.00 NIHON UNISYS 84,511.52 168,743.89 253,255.41
8,850.00 17,850.00 26,700.00 NOVADIGM, INC. 153,768.75 310,143.75 463,912.50
462.00 997.00 1,459.00 SMC 81,644.01 175,817.73 257,461.74
675.00 579.00 1,254.00 SOFTBANK CORP 487,864.08 417,598.35 905,462.43
93.00 - 93.00 SOFTBANK CORP 67,216.83 - 67,216.83
3,086.00 5,214.00 8,300.00 SANWA BANK 37,527.12 63,271.11 100,798.23
392.00 2,241.00 2,633.00 SEVEN ELEVEN 63,814.85 364,051.36 427,866.21
11,511.00 24,174.00 35,685.00 SINGAPORE AIRLINES 116,445.70 244,621.21 361,066.91
3,300.00 6,600.00 9,900.00 OMNICOM GROUP 290,812.50 581,625.00 872,437.50
1,213.00 2,679.00 3,892.00 SONY CORP 224,827.89 495,504.08 720,331.97
9,150.00 18,450.00 27,600.00 ONLINE RESOURCES & COMM. 112,087.50 226,012.50 338,100.00
4,800.00 9,700.00 14,500.00 ONYX SOFTWARE CORP 154,800.00 312,825.00 467,625.00
</TABLE>
87
<PAGE> 231
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
1,350.00 2,700.00 4,050.00 OPTICAL COATING LABS 265,612.50 531,225.00 796,837.50
5,950.00 12,050.00 18,000.00 OPTIMAL ROBOTICS 193,375.00 391,625.00 585,000.00
1,950.00 4,562.00 6,512.00 SUMITOMO BANK 29,927.92 69,868.65 99,796.57
10,204.00 20,699.00 30,903.00 SWIRE PACIFIC A 58,601.39 118,867.35 177,468.74
1,873.00 6,031.00 7,904.00 TAKEDA CHEMICAL 110,576.25 355,302.73 465,878.98
320.00 708.00 1,028.00 TAKEFUJI CORP 45,817.40 101,157.67 146,975.07
1,337.00 3,794.00 5,131.00 TOKYO ELECTRONICS 138,984.01 393,564.49 532,548.50
229,778.13 1,748,311.86 1,978,089.99 PNC 98-7 A5 214,917.23 1,635,239.79 1,850,157.02
2,250.00 4,550.00 6,800.00 PRI AUTOMATION 106,593.75 215,556.25 322,150.00
250,000.00 440,000.00 690,000.00 PENTAIR INC SR NT 246,562.50 435,050.00 681,612.50
725.00 1,610.00 2,335.00 PHARMACIA & UPJOHN 39,648.44 88,046.88 127,695.32
11,800.00 37,700.00 49,500.00 PFIZER INC 427,012.50 1,364,268.75 1,791,281.25
3,127.00 6,616.00 9,743.00 POHANG IRON & STEEL ADR 112,376.56 237,762.50 350,139.06
799.00 1,522.00 2,321.00 POLSKI KONCERN NAFTO ADR 8,245.68 15,707.04 23,952.72
8,150.00 16,450.00 24,600.00 POLYMEDICA CORPORATION 142,625.00 287,875.00 430,500.00
3,150.00 6,400.00 9,550.00 PRIORITY HLTHCARE CORP B 77,962.50 158,400.00 236,362.50
4,800.00 9,800.00 14,600.00 PROCTER & GAMBLE CO 518,400.00 1,058,400.00 1,576,800.00
1,750.00 3,550.00 5,300.00 PROXIM CORP 98,000.00 198,800.00 296,800.00
400,000.00 950,000.00 1,350,000.00 PSSF 1998-C1 A1A3 379,102.00 900,367.25 1,279,469.25
285,000.00 665,000.00 950,000.00 PSSF 1999-NRF1 A2 266,654.55 629,612.03 896,266.58
1,600.00 3,250.00 4,850.00 QRS CORPORATION 93,000.00 188,906.25 281,906.25
1,700.00 3,200.00 4,900.00 QUALCOMM 615,931.25 1,159,400.00 1,775,331.25
3,200.00 6,500.00 9,700.00 REMEDY CORPORATION 111,600.00 226,687.50 338,287.50
19,400.00 39,200.00 58,600.00 REPUBLIC SECURITY FINL 155,806.25 314,825.00 470,631.25
270,000.00 770,000.00 1,040,000.00 RESIDENTIAL FDG MTG 248,112.26 707,579.41 955,691.67
527,277.33 2,654,241.90 3,181,519.23 RALI SER 1999 - QS3 CL A8 485,503.78 2,443,959.59 2,929,463.37
200,000.00 400,000.00 600,000.00 RESIDENTIAL ASSET SEC 199,583.40 399,166.80 598,750.20
6,550.00 13,200.00 19,750.00 REX STORES CORPORATION 244,396.88 492,525.00 736,921.88
9,648.40 19,728.00 29,376.40 SBC COMMUNICATIONS INC. 501,113.78 1,024,623.00 1,525,736.78
4,800.00 9,650.00 14,450.00 SBS TECHNOLOGIES, INC 162,000.00 325,687.50 487,687.50
12,600.00 25,450.00 38,050.00 SBA COMMUNICATIONS CORP 144,900.00 292,675.00 437,575.00
7,700.00 15,700.00 23,400.00 SAFEWAY INC 283,937.50 578,937.50 862,875.00
500,000.00 - 500,000.00 SASKATCHEWAN 520,625.00 - 520,625.00
</TABLE>
88
<PAGE> 232
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
5,550.00 11,200.00 16,750.00 SAWTEK INC 253,218.75 511,000.00 764,218.75
670,000.00 1,560,000.00 2,230,000.00 SAXON ASSET SEC TRUST 670,837.50 1,561,950.00 2,232,787.50
295,000.00 700,000.00 995,000.00 SAXON ASSET SEC TRUST 293,432.96 696,281.60 989,714.56
5,300.00 10,800.00 16,100.00 SCHERING PLOUGH CORP 270,962.50 552,150.00 823,112.50
3,800.00 7,700.00 11,500.00 SCHLUMBERGER LTD 228,237.50 462,481.25 690,718.75
5,100.00 10,300.00 15,400.00 SILICON STORAGE TECH 135,150.00 272,950.00 408,100.00
3,550.00 7,200.00 10,750.00 SOUTHWEST GAS CORP. 83,203.13 168,750.00 251,953.13
3,800.00 7,800.00 11,600.00 STATE STREET CORP 279,062.50 572,812.50 851,875.00
4,850.00 9,800.00 14,650.00 STATION CASINOS INC 116,400.00 235,200.00 351,600.00
300,000.00 1,050,000.00 1,350,000.00 SUSA PARTNERSHIP 272,250.00 952,875.00 1,225,125.00
5,200.00 10,500.00 15,700.00 SYMANTEC CORP 242,775.00 490,218.75 732,993.75
2,800.00 5,700.00 8,500.00 T-HQ, INC. 150,500.00 306,375.00 456,875.00
7,300.00 14,900.00 22,200.00 TJX COMPANY 191,168.75 390,193.75 581,362.50
2,885.00 6,354.00 9,239.00 TAIWAN SEMICONDUCTOR 103,319.06 227,552.63 330,871.69
7,100.00 14,600.00 21,700.00 TANDY CORP 544,037.50 1,118,725.00 1,662,762.50
608.00 1,291.00 1,899.00 TELEFONOS DE MEXICO, ADR 56,278.00 119,498.19 175,776.19
3,750.00 7,600.00 11,350.00 TESORO PETRO. CORP. 45,000.00 91,200.00 136,200.00
4,900.00 10,900.00 15,800.00 TEXAS INSTRS INC 470,706.25 1,047,081.25 1,517,787.50
5,000.00 10,400.00 15,400.00 TEXAS UTILITIES 179,062.50 372,450.00 551,512.50
7,550.00 15,250.00 22,800.00 THERAGENICS CORP 72,196.88 145,828.13 218,025.01
9,350.00 18,850.00 28,200.00 3DO COMPANY 88,532.81 178,485.94 267,018.75
7,300.00 14,900.00 22,200.00 TIME WARNER INC 450,318.75 919,143.75 1,369,462.50
5,600.00 11,300.00 16,900.00 TITAN CORP 151,550.00 305,806.25 457,356.25
8,550.00 17,300.00 25,850.00 TITAN PHARMACEUTICALS 122,906.25 248,687.50 371,593.75
7,000.00 14,100.00 21,100.00 TOO INC 129,500.00 260,850.00 390,350.00
2,300.00 4,650.00 6,950.00 TRANSWITCH CORP 108,100.00 218,550.00 326,650.00
5,850.00 11,800.00 17,650.00 TREX COMPANY INC. 150,637.50 303,850.00 454,487.50
13,800.00 28,400.00 42,200.00 TYCO INTERNATIONAL LTD 552,862.50 1,137,775.00 1,690,637.50
350,000.00 760,000.00 1,110,000.00 VENDE 99 - 3 1D 327,571.65 711,298.44 1,038,870.09
110,000.00 2,600,000.00 2,710,000.00 U.S. TREASURY BOND 106,426.10 2,515,526.00 2,621,952.10
1,355,000.00 2,300,000.00 3,655,000.00 U.S. TREASURY NOTE 1,372,655.65 2,331,418.00 3,704,073.65
150,000.00 500,000.00 650,000.00 U.S. TREASURY NOTE 150,658.50 502,375.00 653,033.50
925,000.00 2,040,000.00 2,965,000.00 U.S. TREASURY NOTE 916,231.00 2,020,660.80 2,936,891.80
</TABLE>
89
<PAGE> 233
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
3,600.00 7,500.00 11,100.00 UNITED TECHNOLOGIES 203,400.00 423,750.00 627,150.00
3,900.00 7,850.00 11,750.00 VALASSIS COMMUNICATIONS 153,562.50 309,093.75 462,656.25
300,000.00 600,000.00 900,000.00 VANDERBILT MTG FIN 299,781.30 599,562.60 899,343.90
4,250.00 8,600.00 12,850.00 VISUAL NETWORKS INC. 250,750.00 507,400.00 758,150.00
9,100.00 18,600.00 27,700.00 WAL-MART STORES INC 524,387.50 1,071,825.00 1,596,212.50
9,200.00 18,800.00 28,000.00 WALGREEN CO 267,950.00 547,550.00 815,500.00
4,000.00 8,200.00 12,200.00 WARNER LAMBERT CO 358,750.00 735,437.50 1,094,187.50
430,000.00 1,200,000.00 1,630,000.00 WORTHINGTON INDUSTRIES 416,562.50 1,165,500.00 1,582,062.50
5,000.00 10,050.00 15,050.00 ZORAN CORP 199,375.00 400,743.75 600,118.75
166,560.50 381,606.67 548,167.17 FSQ PREMIUM MM #483 166,560.50 381,606.67 548,167.17
- 13,187,000.00 13,187,000.00 Security Lending Collateral - 13,187,000.00 13,187,000.00
============= ============= ============== ============= ============= ==============
31,004,266.13 81,245,260.78 112,249,526.91 77,717,188.75 180,126,252.35 257,843,441.10
</TABLE>
90
<PAGE> 234
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
National Tax-
Parkstone Armada Exempt Bond
National Tax- National Tax- Fund
Exempt Bond Exempt Bond Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
TOTAL INVESTMENTS: 84,998 95,114 180,113
------ ------ -------
ASSETS
Cash 0 96 96
Accrued Income 1,591 1,605 3,196
Investment Securities Sold 0 0 0
Cap Shares Sold 0 0 0
Other Assets 11 91 102
TOTAL ASSETS: 86,600 96,907 183,507
------ ------ -------
LIABILITIES
Income Payable 278 334 612
Capital Gain Payable 0 0 0
Investment Securities Purchased 0 0 0
Capital Shares Redeemed Payable 12 68 80
Accrued Expense Payable 90 175 265
Other Payables 0 0 0
TOTAL LIABILITIES: 380 577 957
------ ------ -------
TOTAL NET ASSETS: 86,220 96,330 182,550
</TABLE>
91
<PAGE> 235
STATEMENT OF OPERATIONS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
National Tax-
Parkstone Armada Exempt Bond
National Tax- National Tax- Fund
Exempt Bond Exempt Bond Proforma Pro Forma
Fund Fund Adjustments Combined
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest 2,296 2,165 0 4,461
------ ------ --------- ------
TOTAL INCOME: 2,296 2,165 0 4,461
------ ------ --------- ------
EXPENSES:
Administrator Fees 123 36 (40)A 119
Investment Advisory Fees 327 279 - 606
Waiver of Investment Advisory Fees (92) (144) - (236)
Transfer Agent Fees 26 24 - 50
Custodian Fees 10 10 - 20
Professional Fees (Audit + Legal) 7 2 (4)A 5
Trustee (Directors) Fees 1 1 - 2
Registration Fees 11 6 - 17
12b-1 Fees 10 21 12 A 43
Shareholder Servicing Fees 0 2 4 A 6
Printing Expenses 7 3 - 10
Miscellaneous Expenses 1 4 - 5
TOTAL EXPENSES: (431) (244) (28) (647)
------ ------ --------- ------
NET INVESTMENT INCOME: 1,865 1,921 (28) 3,814
------ ------ --------- ------
Net Realized Gains (Losses) on Investments (439) (437) 0 (876)
Net Unrealized Appreciation (Depreciation)
of Investment Securities (2,347) (2,596) 0 (4,943)
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS: (2,786) (3,033) 0 (5,819)
------ ------ --------- ------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: (921) (1,112) (28) (2,005)
------ ------ --------- ------
</TABLE>
A - To adjust fees to the current Armada fee structure
92
<PAGE> 236
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTH PERIOD ENDING NOVEMBER 30, 1999
(Amounts in Thousands)
<TABLE>
<CAPTION>
Armada
National Tax-
Parkstone Armada Exempt Bond
National Tax- National Tax- Fund
Exempt Bond Exempt Bond Pro Forma
Fund Fund Combined
<S> <C> <C> <C>
INVESTMENT ACTIVITIES:
Net Investment Income 1,865 1,921 3,786
Net Realized Gain (Loss) on Securities Sold (439) (437) (876)
Net Increase (Decrease) in Unrealized
Appreciation of Assets (2,347) (2,596) (4,943)
------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS: (921) (1,112) (2,033)
------- ------- -------
DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income
Institutional/Class I Shares (1,753) (2,062) (3,815)
Investor A/Class A Shares (105) (92) (197)
Investor B/Class B Shares (7) (5) (12)
Realized Capital Gains
Institutional/Class I Shares - - -
Investor A/Class A Shares - - -
Investor B/Class B Shares - - -
TOTAL DISTRIBUTIONS: (1,865) (2,159) (4,024)
------- ------- -------
PAID-IN-CAPITAL:
Institutional/Class I Shares
Shares Issued 2,361 5,303 7,664
Shares Issued in Lieu of Cash Distributions 153 21 174
Shares Redeemed (15,147) (11,091) (26,238)
Net Institutional/Class I Share Transactions (12,633) (5,767) (18,400)
------- ------- -------
Investor A/Class A Shares
Shares Issued 43 925 968
Shares Issued in Lieu of Cash Distributions 82 82 164
Shares Redeemed (2,773) (797) (3,570)
Net Investor A/Class A Share Transactions (2,648) 210 (2,438)
------- ------- -------
Investor B/Class B Shares
Shares Issued - 35 35
Shares Issued in Lieu of Cash Distributions 3 5 8
Shares Redeemed (39) - (39)
Net Investor B/Class B Share Transactions (36) 40 4
------- ------- -------
INCREASE (DECREASE) IN NET ASSETS
FROM SHARE TRANSACTIONS: (15,317) (5,517) (20,834)
------- ------- -------
BEGINNING OF PERIOD: 104,323 105,118 209,441
------- ------- -------
END OF PERIOD: 86,220 96,330 182,550
------- ------- -------
</TABLE>
93
<PAGE> 237
PROFORMA COMBINED SCHEDULE OF INVESTMENTS
ARMADA NATIONAL TAX EXEMPT/
PARKSTONE NATIONAL TAX EXEMPT
AS OF 11/30/99
<TABLE>
<CAPTION>
Proforma Proforma
Armada Parkstone Combined Armada Parkstone Combined
Shares/Par Shares/Par Shares/Par Security Description Market Value Market Value Market Value
---------- ---------- ---------- -------------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
75,000.00 0.00 75,000.00 ALASKA STATE RB 75,750.00 0.00 75,750.00
70,000.00 0.00 70,000.00 ALASKA STATE, RB 70,962.50 0.00 70,962.50
0.00 1,000,000.00 1,000,000.00 ALBERQUERQUE 6.00 07/01/05 0.00 1,062,500.00 1,062,500.00
0.00 1,000,000.00 1,000,000.00 ALBERQUERQUE 6.00 07/01/07 0.00 1,067,500.00 1,067,500.00
1,000,000.00 0.00 1,000,000.00 AMERICAN PUB ENERGY AGY 891,250.00 0.00 891,250.00
1,100,000.00 0.00 1,100,000.00 ANCHORAGE ALASKA 1,031,250.00 0.00 1,031,250.00
200,000.00 0.00 200,000.00 ARKANSAS STATE, RB 200,500.00 0.00 200,500.00
0.00 1,300,000.00 1,300,000.00 BUFFALO NY 6.00 07/01/13 0.00 1,381,250.00 1,381,250.00
0.00 1,355,000.00 1,355,000.00 BURL, VT 6.00 07/01/07 0.00 1,437,993.75 1,437,993.75
1,000,000.00 0.00 1,000,000.00 BUTLER COUNTY, OH RB 1,066,250.00 0.00 1,066,250.00
0.00 1,560,000.00 1,560,000.00 CANYON, CO 8.125 07/30/03 0.00 1,741,350.00 1,741,350.00
1,000,000.00 0.00 1,000,000.00 CHARLESTON CNTY S C 1,071,250.00 0.00 1,071,250.00
0.00 2,095,000.00 2,095,000.00 CHEROKEE SC 5.50 03/01/05 0.00 2,170,943.75 2,170,943.75
0.00 795,000.00 795,000.00 CLEVELAND 8.00 12/01/01 0.00 851,643.75 851,643.75
0.00 820,000.00 820,000.00 CLEVELAND 0.00 12/01/12 0.00 395,650.00 395,650.00
0.00 820,000.00 820,000.00 CLEVELAND 0.00 12/01/15 0.00 319,800.00 319,800.00
0.00 815,000.00 815,000.00 CLEVELAND 0.00 12/01/16 0.00 296,456.25 296,456.25
995,000.00 0.00 995,000.00 CLEVELAND, OH RB 1,064,650.00 0.00 1,064,650.00
1,500,000.00 0.00 1,500,000.00 CLEVELAND, OH RB 1,546,875.00 0.00 1,546,875.00
2,245,000.00 0.00 2,245,000.00 COLUMBIA MO WTR & ELEC 2,334,800.00 0.00 2,334,800.00
2,000,000.00 0.00 2,000,000.00 CONNECTICUT STATE, GO 5.5 2,055,000.00 0.00 2,055,000.00
0.00 2,000,000.00 2,000,000.00 CONN ST 5.375 09/01/08 0.00 2,052,500.00 2,052,500.00
0.00 1,770,000.00 1,770,000.00 CONN WTR 6.375 06/01/05 0.00 1,920,450.00 1,920,450.00
0.00 2,500,000.00 2,500,000.00 CONROE IS. 5.50 02/15/15 0.00 2,468,750.00 2,468,750.00
1,310,000.00 0.00 1,310,000.00 RI CONVENTION CTR RB 1,378,775.00 0.00 1,378,775.00
260,000.00 0.00 260,000.00 COTTAGE GROVE,WI GO 255,775.00 0.00 255,775.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 1,630,000.00 1,630,000.00 DADE CNTY 6.50 02/15/06 0.00 1,774,662.50 1,774,662.50
600,000.00 0.00 600,000.00 DALLAS CTY,TX GO 594,000.00 0.00 594,000.00
0.00 1,000,000.00 1,000,000.00 DALLAS 6.125 02/15/07 0.00 1,047,500.00 1,047,500.00
500,000.00 0.00 500,000.00 DELAWARE STATE 503,535.00 0.00 503,535.00
0.00 1,000,000.00 1,000,000.00 DE TRANS 7.80 07/01/04 0.00 1,086,250.00 1,086,250.00
0.00 1,250,000.00 1,250,000.00 DE STATE 6.00 07/01/06 0.00 1,332,812.50 1,332,812.50
1,750,000.00 0.00 1,750,000.00 EAST CHICAGO, IN RB 1,830,937.50 0.00 1,830,937.50
0.00 1,000,000.00 1,000,000.00 DESC & JEFF 6.00 06/01/03 0.00 1,048,750.00 1,048,750.00
0.00 1,200,000.00 1,200,000.00 FAYETTE GO 6.25 03/01/04 0.00 1,275,000.00 1,275,000.00
0.00 1,000,000.00 1,000,000.00 FL ST DOT 6.00 07/01/07 0.00 1,071,250.00 1,071,250.00
0.00 135,000.00 135,000.00 FL BD EDUC 9.125 06/01/14 0.00 178,200.00 178,200.00
0.00 2,000,000.00 2,000,000.00 FL BD EDUC 6.90 05/01/03 0.00 2,152,500.00 2,152,500.00
1,000,000.00 0.00 1,000,000.00 FOREST HILLS MICH PUB SCH 966,250.00 0.00 966,250.00
500,000.00 0.00 500,000.00 FORT WAYNE INDIANA 484,375.00 0.00 484,375.00
750,000.00 0.00 750,000.00 FORT WAYNE SOUTH SIDE 716,250.00 0.00 716,250.00
500,000.00 0.00 500,000.00 FORT WAYNE SOUTH SIDE 473,125.00 0.00 473,125.00
40,000.00 0.00 40,000.00 FULTON COUNTY GA 40,450.00 0.00 40,450.00
45,000.00 0.00 45,000.00 FULSFH 5.3% 3/1/05 45,675.00 0.00 45,675.00
0.00 2,000,000.00 2,000,000.00 GEORGIA 6.60 04/01/05 0.00 2,180,000.00 2,180,000.00
1,000,000.00 0.00 1,000,000.00 GEORGIA STATE GO 1,082,500.00 0.00 1,082,500.00
1,000,000.00 0.00 1,000,000.00 GEORGIA STATE 1,120,000.00 0.00 1,120,000.00
0.00 2,000,000.00 2,000,000.00 GEORGIA ELEC 6.50 01/01/12 0.00 2,202,500.00 2,202,500.00
175,000.00 0.00 175,000.00 GNV 5.55% 12/01/1999 175,000.00 0.00 175,000.00
2,000,000.00 0.00 2,000,000.00 GRAND RAPIDS, MICH GO 2,112,500.00 0.00 2,112,500.00
0.00 1,505,000.00 1,505,000.00 GUAM HWY 5.90 05/01/02 0.00 1,559,556.25 1,559,556.25
0.00 1,000,000.00 1,000,000.00 GULF BREEZE VRD 12/01/17 0.00 980,000.00 980,000.00
365,000.00 0.00 365,000.00 HMLEDU 4.50% 7/05/2003 365,912.50 0.00 365,912.50
300,000.00 0.00 300,000.00 HMLEDU 4.55% 7/05/2004 298,875.00 0.00 298,875.00
100,000.00 0.00 100,000.00 HMLEDU 4.40% 7/05/2001 100,375.00 0.00 100,375.00
1,250,000.00 0.00 1,250,000.00 HAMMOND, INDIANA RB ETM 1,289,062.50 0.00 1,289,062.50
2,000,000.00 1,540,000.00 3,540,000.00 HARRIS COUNTY 2,100,000.00 1,617,000.00 3,717,000.00
1,000,000.00 0.00 1,000,000.00 HENDERSON, NEV GO 1,092,500.00 0.00 1,092,500.00
1,000,000.00 0.00 1,000,000.00 HUDSON, OHIO GO 562,500.00 0.00 562,500.00
1,200,000.00 0.00 1,200,000.00 IPS SCH BLDG, IND RB 1,293,000.00 0.00 1,293,000.00
400,000.00 0.00 400,000.00 ILSDEV 5.00% 1/01/2004 405,500.00 0.00 405,500.00
200,000.00 0.00 200,000.00 ILL EDL FACS AUTH REV 200,750.00 0.00 200,750.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1,000,000.00 0.00 1,000,000.00 ILLINOIS STATE RB 1,043,750.00 0.00 1,043,750.00
2,500,000.00 0.00 2,500,000.00 ILLINOIS HWY AUTH RB 2,512,500.00 0.00 2,512,500.00
400,000.00 0.00 400,000.00 IN ST OFFICE BLDG COMN 388,500.00 0.00 388,500.00
2,000,000.00 0.00 2,000,000.00 INTERMOUNTAIN POWER AGEN 2,165,000.00 0.00 2,165,000.00
0.00 1,000,000.00 1,000,000.00 JEFFERSON 5.25 12/15/05 0.00 1,025,000.00 1,025,000.00
0.00 1,535,000.00 1,535,000.00 KANSAS CITY 6.00 02/01/04 0.00 1,615,587.50 1,615,587.50
0.00 1,000,000.00 1,000,000.00 KS TRANS 7.25 03/01/04 0.00 1,100,000.00 1,100,000.00
0.00 3,000,000.00 3,000,000.00 KENTUCKY 6.50 07/01/07 0.00 3,292,500.00 3,292,500.00
1,000,000.00 0.00 1,000,000.00 KING CNTY WASH (6.10%) 1,001,600.00 0.00 1,001,600.00
300,000.00 0.00 300,000.00 LAGRANGE CNTY IND JAIL 295,875.00 0.00 295,875.00
1,000,000.00 0.00 1,000,000.00 LAKE CNTY,ILL GO 1,022,500.00 0.00 1,022,500.00
0.00 1,435,000.00 1,435,000.00 LANE CNTY OREG 6.00 01/01/04 0.00 1,503,162.50 1,503,162.50
245,000.00 0.00 245,000.00 MSD STEUBEN CNTY 243,775.00 0.00 243,775.00
1,000,000.00 0.00 1,000,000.00 MARICOPA CNTY, AZ RB 1,000,000.00 0.00 1,000,000.00
1,000,000.00 0.00 1,000,000.00 MASS BAY TRANS 1,050,000.00 0.00 1,050,000.00
2,385,000.00 0.00 2,385,000.00 MASS BAY TRANS PREREFUND 2,540,025.00 0.00 2,540,025.00
655,000.00 0.00 655,000.00 MASS BAY TRANS RB 650,087.50 0.00 650,087.50
0.00 1,000,000.00 1,000,000.00 MASS ST 5.75 08/01/08 0.00 1,053,750.00 1,053,750.00
0.00 1,290,000.00 1,290,000.00 MEMPHIS 6.00 11/01/03 0.00 1,359,337.50 1,359,337.50
1,500,000.00 0.00 1,500,000.00 NASHVILLE/DAVIDSON CO. TN 1,616,250.00 0.00 1,616,250.00
0.00 1,435,000.00 1,435,000.00 NASHVILLE GOVT 5.25 05/15/07 0.00 1,465,493.75 1,465,493.75
2,000,000.00 0.00 2,000,000.00 MICHIGAN STATE RB 2,135,000.00 0.00 2,135,000.00
0.00 2,000,000.00 2,000,000.00 MILWAUKEE 6.00 02/01/07 0.00 2,125,000.00 2,125,000.00
1,300,000.00 0.00 1,300,000.00 MINNESOTA PUB FACS RB 1,335,802.00 0.00 1,335,802.00
0.00 1,000,000.00 1,000,000.00 MINNESOTA 6.00 05/01/06 0.00 1,068,750.00 1,068,750.00
200,000.00 0.00 200,000.00 MINNESOTA ST HSG FIN AGY 201,250.00 0.00 201,250.00
0.00 1,000,000.00 1,000,000.00 MISSOURI ST 6.00 04/01/02 0.00 1,037,500.00 1,037,500.00
0.00 1,545,000.00 1,545,000.00 MO ST ENVRN 6.00 01/01/07 0.00 1,641,562.50 1,641,562.50
0.00 495,000.00 495,000.00 MISSOURI ST 7.00 10/01/10 0.00 514,567.35 514,567.35
1,948,393.80 0.00 1,948,393.80 FEDERATED TAX-FREE MM #15 1,948,393.80 0.00 1,948,393.80
0.00 1,000,000.00 1,000,000.00 MONTGOMERY 5.70 07/01/05 0.00 1,051,250.00 1,051,250.00
0.00 1,000,000.00 1,000,000.00 AST CORP NY 6.00 07/01/04 0.00 1,055,000.00 1,055,000.00
0.00 1,090,119.31 1,090,119.31 MUNI CASH MUTUAL FUND VRD 0.00 1,090,119.31 1,090,119.31
1,000,000.00 0.00 1,000,000.00 NEVADA STATE GO 1,053,750.00 0.00 1,053,750.00
1,000,000.00 0.00 1,000,000.00 NEVADA ST. 1,062,500.00 0.00 1,062,500.00
2,000,000.00 0.00 2,000,000.00 NEW JERSEY STATE RBT 2,125,000.00 0.00 2,125,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
0.00 995,000.00 995,000.00 NEW YORK 8.00 04/01/03 0.00 1,101,962.50 1,101,962.50
0.00 1,005,000.00 1,005,000.00 NEW YORK 8.00 04/01/03 0.00 1,106,756.25 1,106,756.25
0.00 1,365,000.00 1,365,000.00 NY TRANS 5.50 08/15/07 0.00 1,411,068.75 1,411,068.75
1,000,000.00 0.00 1,000,000.00 NEW YORK STATE RB 1,151,250.00 0.00 1,151,250.00
0.00 1,000,000.00 1,000,000.00 N ST PAUL 6.875 02/01/15 0.00 1,097,500.00 1,097,500.00
190,000.00 0.00 190,000.00 OHIO HSG FIN AGY MTG REV 192,850.00 0.00 192,850.00
0.00 1,920,000.00 1,920,000.00 OH HSG FIN AGY 0.00 01/15/15 0.00 763,200.00 763,200.00
2,000,000.00 0.00 2,000,000.00 OHIO ST TPK COMMN TPK RB 1,965,000.00 0.00 1,965,000.00
0.00 1,715,000.00 1,715,000.00 OH ST WATER 6.00 06/01/07 0.00 1,835,050.00 1,835,050.00
2,225,000.00 0.00 2,225,000.00 ORANGE COUNTY NY 2,183,281.25 0.00 2,183,281.25
100,000.00 0.00 100,000.00 PENN ST EDL FACS AUTH REV 100,375.00 0.00 100,375.00
1,000,000.00 0.00 1,000,000.00 PLANO, TEXAS 1,062,500.00 0.00 1,062,500.00
1,000,000.00 0.00 1,000,000.00 PLANO, TEXAS GO 1,038,750.00 0.00 1,038,750.00
1,000,000.00 0.00 1,000,000.00 PRINCE GEORGES CNTY, MD 1,067,500.00 0.00 1,067,500.00
1,000,000.00 0.00 1,000,000.00 PRIVATE COLLEGES & UNIVS 1,040,000.00 0.00 1,040,000.00
0.00 4,000,000.00 4,000,000.00 PUERTO RICO 6.50 07/01/06 0.00 4,405,000.00 4,405,000.00
250,000.00 0.00 250,000.00 PULASKI CNTY ARK HLTH REV 249,902.50 0.00 249,902.50
1,315,000.00 0.00 1,315,000.00 REDFORD, MICHIGAN 1,361,025.00 0.00 1,361,025.00
0.00 1,130,000.00 1,130,000.00 RHODE ISLAND 5.00 08/01/06 0.00 1,142,712.50 1,142,712.50
1,000,000.00 0.00 1,000,000.00 RICHMOND, VA GO 1,041,250.00 0.00 1,041,250.00
0.00 575,000.00 575,000.00 ROBINSON TX 5.75 08/15/12 0.00 589,375.00 589,375.00
2,415,000.00 0.00 2,415,000.00 ARIZONA STATE RB 2,393,868.75 0.00 2,393,868.75
1,000,000.00 0.00 1,000,000.00 SAN FRANCISCO, CA GO 997,500.00 0.00 997,500.00
0.00 1,000,000.00 1,000,000.00 SEATTLE WA 5.00 12/01/03 0.00 1,021,250.00 1,021,250.00
0.00 2,000,000.00 2,000,000.00 SHELBY, TN. 5.20 12/01/09 0.00 2,017,500.00 2,017,500.00
4,000,000.00 0.00 4,000,000.00 SOUTH CAROLINA STATE RB 4,010,000.00 0.00 4,010,000.00
0.00 1,000,000.00 1,000,000.00 TAMPA SPORT 0.00 1,063,750.00 1,063,750.00
0.00 2,000,000.00 2,000,000.00 TENN ST 6.00 05/01/05 0.00 2,125,000.00 2,125,000.00
4,100,000.00 0.00 4,100,000.00 TEXAS STATE GO 4,178,556.00 0.00 4,178,556.00
0.00 1,000,000.00 1,000,000.00 UNIV OF PR 6.25 06/01/07 0.00 1,092,500.00 1,092,500.00
0.00 2,000,000.00 2,000,000.00 UTAH ST 5.50 07/01/04 0.00 2,075,000.00 2,075,000.00
2,000,000.00 0.00 2,000,000.00 VERMONT BANK 2,047,500.00 0.00 2,047,500.00
495,000.00 0.00 495,000.00 VINTON-TECUMSEH SCH BLDG 488,812.50 0.00 488,812.50
300,000.00 0.00 300,000.00 VINTON-TECUMSEH SCH BLDG 294,000.00 0.00 294,000.00
0.00 1,220,000.00 1,220,000.00 WASH CNTY 7.80 06/01/04 0.00 1,374,025.00 1,374,025.00
0.00 2,000,000.00 2,000,000.00 WASH CNTY 5.75 10/01/08 0.00 2,105,000.00 2,105,000.00
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1,900,000.00 0.00 1,900,000.00 WASHINGTON STATE GO 1,968,875.00 0.00 1,968,875.00
2,500,000.00 0.00 2,500,000.00 WASHINGTON STATE RB 2,636,725.00 0.00 2,636,725.00
1,000,000.00 0.00 1,000,000.00 WASHINGTON SUBN RB 1,060,000.00 0.00 1,060,000.00
300,000.00 0.00 300,000.00 WEBER CNTY UTAH MUN BLDG 303,375.00 0.00 303,375.00
3,275,000.00 0.00 3,275,000.00 WISCONSIN STATE GO 3,414,187.50 0.00 3,414,187.50
1,000,000.00 0.00 1,000,000.00 WISCONSIN CLEAN WTR RB 1,006,250.00 0.00 1,006,250.00
740,000.00 0.00 740,000.00 WYOMING OH CSD 759,425.00 0.00 759,425.00
800,000.00 0.00 800,000.00 WYOMING OHIO CITY SCH DIS 814,000.00 0.00 814,000.00
92,768,393.80 82,840,119.31 175,608,513.11 95,114,476.80 84,997,999.16 180,112,475.96
</TABLE>
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ARMADA/PARKSTONE FUNDS
NOTES TO PRO FORMA COMBINING FINANCIAL STATEMENTS
AS OF NOVEMBER 30, 1999
1. Basis of Combination
The Pro Forma Combining Statement of Assets and Liabilities, including the
Pro Forma Portfolio of Investments, and the related Pro Forma Combining
Statement of Operations ("Pro Forma Statements") reflect the accounts of
the Parkstone Prime Obligations Fund and the Armada Money Market Fund, the
Parkstone U.S. Government Obligations Fund and the Armada Government Money
Market Fund, the Parkstone Tax-Free Fund and the Armada Tax Exempt Money
Market Fund, the Parkstone Bond Fund and the Armada Bond Fund, the
Parkstone Intermediate Government Fund and the Armada Intermediate Bond
Fund, the Parkstone Limited Maturity Bond Fund and the Armada Limited
Maturity Bond Fund, the Parkstone National Tax Exempt Bond Fund and the
Armada National Tax Exempt Bond Fund, the Parkstone Balanced Allocation
Fund and the Armada Balanced Allocation Fund, the Parkstone Equity Income
Fund and the Armada Equity Income Fund, the Parkstone International
Discovery Fund and the Armada International Equity Fund, the Parkstone
Small Capitalization Fund and the Armada Small Cap Growth Fund at November
30, 1999.
The Pro Forma Statements give effect to the proposed Agreement and Plan of
Reorganization (the "Reorganization") to be submitted to shareholders of
Parkstone. The Reorganization provides for the acquisition of all assets
and liabilities of the above Parkstone Funds by the above Armada Funds, in
exchange for Class I, A and B shares of the Armada Funds. Thereafter, there
will be a distribution of Class I, A and B shares of the above Armada Funds
to the respective shareholders in liquidation and subsequent termination
thereof. As a result of the Reorganization, the shareholders of the above
Parkstone Funds, will become the owners of that number of full and
fractional Class I, A and B shares of the corresponding Armada Fund having
an aggregate net asset value equal to the aggregate net asset value of
their shares of the above Parkstone Funds as of the close of business
immediately prior to the date that the above Parkstone Funds assets are
exchanged for Class I, A and B shares of the above Armada Funds.
The Pro Forma Statements reflect the expenses of each Fund in carrying out
its obligations under the Reorganization as though the merger occurred at
the beginning of the period presented.
The information contained herein is based on the experience of each Fund
for the periods ended November 30, 1999 and is designed to permit the
shareholders of the consolidating mutual funds to evaluate the financial
effect of the proposed Reorganization. The expenses of above Parkstone
Funds in connection with the Reorganization (including the cost of any
proxy soliciting agents) will be borne by National City Bank, Cleveland,
Ohio. It is not anticipated that the securities of the combined portfolio
will be sold in significant amounts in order to comply with the policies
and investment practices of Armada Funds.
The Pro Forma Statements should be read in conjunction with the historical
financial statements of each Fund incorporated by reference in the
Statement of Additional Information.
2. Shares of Beneficial Interest
The Pro Forma net asset values per share assume the issuance of Class I, A
and B shares of Armada Funds which would have been issued at November 30,
1999 in connection with the proposed Reorganization. Shareholders of above
Parkstone Funds would receive Class I, A and B shares of the above Armada
Funds based on conversion ratios determined on November 30, 1999. The
conversion ratios are calculated by dividing the net asset value of the
above Parkstone Funds by the net asset value per share of the respective
class of the above Armada Funds.
3. Pro Forma Operations
The Pro Forma Combining Statement of Operations assumes similar rates of
gross investment income for the investments of each Fund. Accordingly, the
combined gross investment income is equal to the sum of each Fund's gross
investment income. Pro Forma operating expenses include the actual expenses
of the Funds adjusted to reflect the expected expenses of the combined
entity. The investment advisory and distribution fees have been charged to
the combined Fund based on the fee schedule in effect for the Armada Funds
at the combined level of average net assets for the periods ended November
30, 1999.
