Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
Annual Report
For the Year Ended
March 31, 1996
<PAGE>
May 1, 1996
Dear Shareholders:
March 31, 1996 marked the end of the second full fiscal year for the
Pro-Conscience Women's Equity Mutual Fund (WEMF). The Fund's performance as of
March 31, 1996 was as follows:
<TABLE>
<CAPTION>
Annualized
From Inception
Fund One Year Two Years (10/1/93)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Pro-Conscience Women's
Equity Mutual Fund 16.17% 17.30% 8.52%
</TABLE>
Since May 19, 1995, Cheryl Smith of United States Trust Company of Boston
(USTCB) has been the manager of the portfolio. The stocks in our portfolio are
of companies that are well managed with growth potential and that have positive
policies toward women. We continue to improve our direct dialogue with
corporations and where necessary encourage them to diversify their boards and
increase the overall representation of women in their companies. We also ask
them to disclose their Equal Employment Opportunity records.
In the U.S., signs continue to point toward growth of 2 to 3 percent annually.
Inflation pressures will be building slightly but we believe it is unlikely that
inflation will exceed 3 percent for the rest of 1996. Projected solid corporate
earnings combined with increasing funds flowing into equity mutual funds should
contribute to continued stock market advances.
We welcome any comments and questions that you may have.
Sincerely yours,
Linda C. Y. Pei
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
COMPARISON OF $10,000 INVESTMENT IN THE WOMEN'S EQUITY MUTUAL FUND AND
THE S&P 500 INDEX
Annual Average Total Return
Periods Ended March 31, 1996
1 Year Inception(10/1/93)
16.17% 8.52%
Date Women's Equity Mutual Fund S&P 500
10/1/93 10,000 10,000
3/31/94 10,460 9,791
9/30/94 10,684 10,315
3/31/95 10,561 11,319
9/30/95 11,402 13,380
3/31/96 12,269 14,945
Past performance is not predictive of future performance.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS at March 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 94.0% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Child Care Services: 0.4%
<S> <C> <C>
2,700 Children's Discovery Centers*........................................... $ 13,500
-----------
Consumer Products: 19.9%
1,600 Aptargroup, Inc......................................................... 66,400
1,000 Avon Products, Inc...................................................... 85,750
1,100 Coca Cola Co............................................................ 90,887
2,000 Cyanotech Corp.*........................................................ 14,250
1,500 Gillette Co............................................................. 77,625
1,800 H. J. Heinz Co.......................................................... 59,625
1,600 May Department Stores Co................................................ 77,200
1,900 McDonald's Corp......................................................... 91,200
2,000 Odwalla, Inc.*.......................................................... 35,500
4,400 Perrigo Co.*............................................................ 59,400
------
657,837
-------
Energy and Resources: 3.8%
600 Amoco Corp.............................................................. 43,350
350 Atlantic Richfield Co................................................... 41,650
1,500 California Energy Corp.*................................................ 39,937
------
124,937
-------
Financial Services: 16.3%
825 American International Group............................................ 77,241
1,150 Bank of Boston Corp..................................................... 57,069
650 Baybanks, Inc........................................................... 69,875
735 Cincinnati Financial Corp............................................... 46,581
2,800 Federal National Mortgage Association................................... 89,250
200 General RE Corp......................................................... 29,150
2,700 MBNA Corp............................................................... 79,988
2,500 Norwest Corp............................................................ 91,875
------
541,029
-------
Healthcare: 16.1%
1,000 Amgen*.................................................................. 58,125
900 Becton Dickinson Co..................................................... 73,688
1,350 Cardinal Health, Inc.................................................... 86,737
2,500 Invacare Corp........................................................... 70,625
950 Johnson & Johnson....................................................... 87,638
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
PORTFOLIO OF INVESTMENTS at March 31, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare, continued
1,000 Medtronic, Inc.......................................................... $ 59,625
1,650 Schering-Plough Corp.................................................... 95,906
------
532,344
-------
Industrial Machinery: 0.9%
500 Nordson Corp............................................................ 30,375
------
Industrial Materials: 5.5%
1,100 Consolidated Papers, Inc................................................ 61,875
850 Loctite Corp............................................................ 42,925
1,350 Praxair, Inc............................................................ 53,831
1,600 TJ International, Inc................................................... 25,200
------
183,831
-------
Media: 1.5%
800 The Walt Disney Co...................................................... 51,100
------
Media and Publishing: 2.6%
875 Edmark Corp.*........................................................... 21,000
700 Minnesota Educational Computing Group*.................................. 15,750
700 Scholastic Corp.*....................................................... 48,125
------
84,875
------
Multi Industry and Other: 1.4%
1,200 Millipore Corp.......................................................... 45,900
------
Producer Products: 5.5%
2,350 Baldor Electric Co...................................................... 47,294
800 Duriron Co., Inc. ..................................................................22,000
700 Illinois Tool Works, Inc................................................ 45,238
1,400 Tennant Co.............................................................. 35,000
500 W.W. Grainger, Inc...................................................... 33,562
------
183,094
-------
Technology: 10.3%
700 Alco Standard Corp...................................................... 36,487
1,100 Applied Materials, Inc.*................................................ 38,362
1,300 Automatic Data Processing, Inc.......................................... 51,188
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
PORTFOLIO OF INVESTMENTS at March 31, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Technology, continued
1,000 Cisco Systems, Inc.*.................................................... $ 46,375
600 Hewlett-Packard Co...................................................... 56,400
700 Intel Corp.............................................................. 39,813
1,600 Silicon Graphics, Inc.*................................................. 40,000
250 Xerox Corp.............................................................. 31,375
------
340,000
-------
Transportation: 1.2%
1,300 Southwest Airlines Co................................................... 38,512
------
Utilities: 8.6%
1,000 AT&T.................................................................... 61,250
550 Ameritech Corp.......................................................... 29,975
800 BellSouth Corp.......................................................... 29,600
1,000 Brooklyn Union Gas Co................................................... 26,750
2,500 MCI Communications Corp................................................. 75,625
1,000 New Jersey Resources Corp............................................... 28,875
600 SBC Communications, Inc................................................. 31,575
------
283,650
-------
Total Common Stocks (cost $2,779,351)................................... 3,110,984
---------
Principal Amount REPURCHASE AGREEMENT: 6.2%
- ------------------------------------------------------------------------------------------------------------------------------------
$205,000 Star Bank Repurchase Agreement, 5.1%, dated 3/29/96, due 4/1/96,
collateralized by $220,000 GNMA, 7.0%, due 5/20/2022 (value of
collateral is $223,918) (proceeds $205,086) (cost $205,000) (a) ........ 205,000
-------
Total Investment in Securities (cost $2,984,351+): 100.2%............... 3,315,984
Liabilities in excess of Other Assets: (0.2)%........................... (7,215)
------
Total Net Assets: 100.0%................................................ $3,308,769
==========
<FN>
* Indicates non-income producing security.
+ Cost for federal income tax purposes is the same.
</FN>
</TABLE>
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
PORTFOLIO OF INVESTMENTS at March 31, 1996, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation consists of:
<S> <C>
Gross unrealized appreciation..................................... $ 394,135
Gross unrealized depreciation..................................... (62,502)
-------
Net unrealized appreciation................................ $ 331,633
=========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at March 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at value (identified cost $2,984,351) (Note 2-A) ........... $3,315,984
Receivables:
<S> <C>
Dividends and interest .......................................................... 3,799
Due from Advisor ................................................................ 17,177
Fund shares sold................................................................. 650
Prepaid expenses....................................................................... 5,882
-----
Total assets .............................................................. 3,343,492
---------
LIABILITIES
Payables:
Fund shares redeemed............................................................. 3,555
Advisor.......................................................................... 10,149
Manager.......................................................................... 2,546
Distribution fees................................................................ 1,926
Accrued expenses ...................................................................... 16,547
------
Total liabilities.......................................................... 34,723
------
NET ASSETS .............................................................................. $3,308,769
==========
Net asset value, offering and redemption price per share
($3,308,769/294,820 shares outstanding;
unlimited number of shares authorized without par value) ........................ $11.22
======
SOURCE OF NET ASSETS
Paid-in capital ....................................................................... $3,052,786
Undistributed net investment income.................................................... 2,658
Accumulated net realized loss on investments........................................... (78,308)
Net unrealized appreciation of investments............................................. 331,633
-------
Net assets ...................................................................... $3,308,769
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Year Ended March 31, 1996
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Interest ........................................................................ $ 14,881
Dividends........................................................................ 49,159
------
Total investment income ................................................... 64,040
------
Expenses
Advisory fees (Note 3) .......................................................... 23,012
Management fee (Note 3).......................................................... 30,000
Distribution costs (Note 4)...................................................... 3,587
Custodian and accounting fees.................................................... 15,727
Transfer agent fees.............................................................. 6,535
Auditing fees.................................................................... 12,034
Legal fees....................................................................... 1,515
Trustees' fees .................................................................. 3,008
Registration fees ............................................................... 6,270
Reports to shareholders.......................................................... 3,989
Insurance........................................................................ 1,669
Miscellaneous.................................................................... 1,999
-----
Total expenses............................................................. 109,345
Less, expenses waived and reimbursed (Note 3).............................. (74,826)
-------
Net expenses............................................................... 34,519
------
Net investment income ............................................. 29,521
------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain from security transactions .......................................... 39,800
Net realized loss on short sale transactions........................................... (18,542)
Net increase in unrealized appreciation of investments ................................ 308,748
-------
Net realized and unrealized gain on investments ........................... 330,006
-------
Net Increase in Net Assets Resulting from Operations ................ $ 359,527
=========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
March 31, 1996 March 31, 1995
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment income ................................................ $ 29,521 $ 54,918
Net realized gain (loss) from security transactions ................... 39,800 (68,999)
Net realized (loss) gain on short sale transactions.................... (18,542) 22,495
Net increase in unrealized appreciation of investments................. 308,748 10,421
------- ------
Net increase in net assets resulting from operations ............ 359,527 18,835
------- ------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ($0.31 and $0.02 per share, respectively)........ (79,392) (2,389)
Net realized gains from security transactions ($0.59 per share)........ -0- (64,003)
- -------
Total distributions to shareholders ............................. (79,392) (66,392)
------- -------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in outstanding
shares (a) ...................................................... 1,515,669 929,054
--------- -------
Total increase in net assets .................................... 1,795,804 881,497
NET ASSETS
Beginning of year ..................................................... 1,512,965 631,468
--------- -------
End of year (including undistributed net investment income of
$2,658 and $52,529, respectively)............................... $3,308,769 $1,512,965
========== ==========
<FN>
(a) A summary of capital shares transactions is as follows:
Year Ended Year Ended
March 31, 1996 March 31, 1995
Shares Value Shares Value
Shares sold ...................................... 149,768 $1,589,367 94,670 $957,697
Shares issued in reinvestment of distributions.... 6,828 73,949 6,488 62,217
Shares redeemed .................................. (14,206) (147,647) (9,117) (90,860)
------- -------- ------ -------
Net increase ..................................... 142,390 $1,515,669 92,041 $929,054
======= ========== ====== ========
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended October 1, 1993*
March March through
31, 1996 31, 1995 March 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period ............................. $ 9.93 $10.46 $10.00
Income from investment operations:
Net investment income (loss) ............................... .01 .36 (.01)
Net realized and unrealized gain (loss) on investments ..... 1.59 (.28) .47
---- ---- ---
Total from investment operations.................................. 1.60 .08 .46
---- --- ---
Less distributions:
Dividends from net investment income........................ (0.31) (.02) -0-
Distributions from net capital gains ....................... -0- (.59) -0-
- ---- -
Total distributions............................................... (0.31) (.61) -0-
----- ---- -
Net asset value, end of period ................................... $11.22 $ 9.93 $10.46
====== ====== ======
Total return ..................................................... 16.17% 0.97% 9.23%+
Ratios/supplemental data:
Net assets, end of period (millions).............................. $ 3.3 $ 1.5 $ 0.6
Ratio of expenses to average net assets:
Before expense reimbursement ............................... 4.75% 8.69% 21.93%+
After expense reimbursement................................. 1.50% 1.50% 1.50%+
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement ............................... (1.97%) (1.97%) (20.74%)+
After expense reimbursement ................................ 1.28% 5.22% (0.31%)+
Portfolio turnover rate .......................................... 120.64% 705.88% 139.26%
<FN>
*Commencement of operations.
+Annualized.
</FN>
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS at March 31, 1996
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Pro-Conscience Women's Equity Mutual Fund (the "Fund") is a series of
shares of beneficial interest of Professionally Managed Portfolios (the
"Trust"), which is registered under the Investment Company Act of 1940 (the
"1940 Act") as a diversified, open-end management company. The Fund's primary
investment objective is to provide long-term capital appreciation. The Fund
seeks to achieve its objective by investing primarily in equity securities, but
there are no assurances that this objective will be achieved. The market value
of the Fund's investment portfolio will fluctuate with market conditions and an
investor's shares, when redeemed, may be worth more or less than their original
cost. The Fund began operations on October 1, 1993.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund. These policies are in conformity with generally accepted
accounting principles.
A. Security Valuation. Investments in securities traded on a national
securities exchange or included in the NASDAQ National Market System
are valued at the last reported sale price at the close of regular
trading on the last business day of the period; securities traded on
an exchange or NASDAQ for which there has been no sale and other
over-the-counter securities are valued at the last reported bid
price. Securities for which quotations are not readily available are
valued at their respective fair values as determined in good faith by
the Board of Trustees. Short-term investments are stated at cost,
which when combined with accrued interest, approximates market value.
U.S. Government securities with less than 60 days
remaining to maturity when acquired by the Fund are valued on an
amortized cost basis. U.S. Government securities with more than 60
days remaining to maturity are valued at the current market value
(using the mean between the bid and asked price) until the 60th day
prior to maturity, and are then valued at amortized cost based upon
the value on such date unless the Board determines during such 60 day
period that this amortized cost basis does not represent fair value.
B. Short Sales. A short sale transaction in which the Fund sells a
security it does not own in anticipation that the market price of the
security will decline. If the value of the security sold short
increased between the time of the short sale and the time the Fund
closed out the short position, the Fund realizes a loss. Any dividend
declared on short positions existing on the record date shall be
recorded on the ex-dividend date and included as an expense of the
period.
C. Federal Income Taxes. The Fund intends to comply with the
requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its
taxable income to its shareholders. Therefore, no Federal
income tax provision is required. The Fund maintains a January 31 tax
year end.
D. Security Transactions, Investment Income and Distributions. As is
common in the industry, security transactions
are accounted for on the trade date. Dividend income and
distributions to shareholders are
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
recorded on the ex-dividend date. Interest income is recognized on an
accrual basis. Income and capital gains distributions are determined
in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are
primarily due to differing treatments for net operating losses and
deferral of post-October capital losses.
E. Accounting Estimates. In preparing financial statements in conformity
with generally accepted accounting principles, management makes
estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements, as well as
the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates.
NOTE 3 - INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
For the year ended March 31, 1996, Pro-Conscience Funds, Incorporated (the
"Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space and certain administrative services, and provides most of the
personnel needed by the Fund. As compensation for its services, the Advisor was
entitled to a monthly fee at the annual rate of 1.00% based upon the average
daily net assets of the Fund. In order to maintain the Fund's operating expenses
at 1.50% of average daily net assets, the Advisor has waived its fee and
reimbursed expenses totaling $68,805 for the year ended March 31, 1996.
The Fund is responsible for its own operating expenses. The Advisor has
agreed to reduce fees payable to it by the Fund to the extent necessary to limit
the Fund's aggregate annual operating expenses to the most stringent limits
prescribed by any state in which the Fund's shares are offered for sale.
Currently, the most stringent limits prescribed are 2.50% of the first $30
million of net assets and reduced amounts thereafter. The limit is less
stringent than the voluntary limit explained above.
Southampton Investment Management Company (the "Manager") acts as the
Fund's Administrative Manager under an Investment Management Agreement. The
Manager prepares various federal and state regulatory filings, reports and
returns for the Fund; prepares reports and materials to be supplied to the
trustees; monitors the activities of the Fund's custodian, transfer agent and
accountants; coordinates the preparation and payment of Fund expenses and
reviews the Fund's expense accruals. For its services, the Manager receives an
annual fee equal to the greater of 0.20% of the Fund's average daily net assets
or $30,000. The Manager voluntarily waived fees totaling $6,021 during the year
ended March 31, 1996.
First Fund Distributors, Inc. (the "Distributor") acts as the Fund's
principal underwriter in a continuous public offering of the Fund's shares. The
Distributor is an affiliate of the Manager.
Certain officers and Trustees of the Fund are also officers and/or
directors of the Manager and Distributor.
NOTE 4 - DISTRIBUTION COSTS
The Fund has adopted a Distribution Plan (the "Plan") in accordance with
Rule 12b-1 under the 1940 Act. The Plan provides that the Fund may pay a fee to
the Distributor at an annual rate of up to 0.25% of the average
<PAGE>
Pro-Conscience Women's Equity Mutual Fund
Advancing gender equality in the workplace
NOTES TO FINANCIAL STATEMENTS, Continued
daily net assets of the Fund. The fee is paid to the Distributor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. During the year ended March 31, 1996, the Fund
paid fees of $3,587 to the Distributor.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
For the year ended March 31, 1996, the cost of purchases and the proceeds
from sales of securities, excluding short-term securities, were $4,257,610 and
$2,459,799, respectively.
NOTE 6 - COMPLIANCE ISSUES
At various times during and at the end of the 1995 fiscal year, the Fund
was not in compliance with certain provisions of Subchapter M of the Internal
Revenue Code of 1986, as amended, which limit the amount of gain that a mutual
fund can realize from the sale of certain securities held less than three
months. As a result of the Fund's failure to stay within the permissible limit,
the Fund was required to pay corporate income tax in 1995. The Fund was
reimbursed for the amount of those tax payments by the Advisor. In addition,
prior to the end of the 1995 fiscal year, in an attempt to bring the Fund into
compliance with the "short-short" limit, the Advisor engaged in a program of
trading designed to increase dividend income and thereby reduce the proportion
of "short-short" income to gross income. This dividend program resulted in the
Fund's high portfolio turnover reported at the end of the fiscal year, losses to
the Fund in the amount of $25,463 and transaction costs in the amount of
$13,765, for a total of $39,228. The Fund will also be reimbursed for these
losses and costs by the Advisor, who will make a payment to the Fund in the
amount of $39,228 during May, 1996.
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
- --------------------------------------------------------------------------------
TO THE SHAREHOLDERS OF
PRO-CONSCIENCE WOMEN'S EQUITY MUTUAL FUND and
THE BOARD OF TRUSTEES OF
PROFESSIONALLY MANAGED PORTFOLIOS
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Pro-Conscience Women's Equity Mutual
Fund (a series of Professionally Managed Portfolios) as of March 31, 1996, and
the related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended and the
financial highlights for each of the two years in the period then ended and for
the period from October 1, 1993 (commencement of operations) to March 31, 1994.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of March
31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Pro-Conscience Women's Equity Mutual Fund as of March 31, 1996, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended and the financial highlights for each
of the two years in the period then ended and for the period October 1, 1993
(commencement of operations) to March 31, 1994, in conformity with generally
accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
April 26, 1996
<PAGE>
Advisor
Pro-Conscience Funds, Incorporated
500 Washington Street, Suite 600
San Francisco, California 94133
(415) 296-9135
--
Distributor
First Fund Distributors, Inc.
4455 E. Camelback Road, Suite 261E
Phoenix, Arizona 85018
--
Custodian
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
--
Transfer Agent
American Data Services
24 West Carver Street
Second Floor
Huntington, New York 11743
--
Auditors
Tait, Weller & Baker
2 Penn Center Plaza
Philadelphia, Pennsylvania 19102
--
Legal Counsel
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, California 94104
This report is intended for the shareholders
of the Pro-Conscience Women's Equity
Mutual Fund and should not be used as
sales literature unless accompanied or
preceded by the Fund's current prospectus.
