<PAGE> 1
TRENT EQUITY FUND
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED AUGUST 31, 1996
Dear Shareholder:
We are pleased to report that Trent Equity Fund is having an excellent
1996. Through September 30, Trent Equity Fund is up 19.26% for the calendar year
1996 to date versus a gain of 13.5% for the S&P 500 with dividends reinvested.
For the six month period ended August 31, 1996, the Fund was up 8.23% versus a
gain of 2.97% for the S&P 500 with dividends reinvested. For the fiscal year
ended August 31, 1996, the Fund was up 7.23% versus a gain of 18.73% for the S&P
500 with dividends reinvested.
Trent Equity Fund invests in stocks that are dominant in their market
places, have strong brand names, or in some other way enjoy a competitive
advantage. The preponderance of the Fund's stocks are companies that enjoy
higher growth characteristics on a sustained long-term basis than the average
stock in the S&P 500. We believe that this higher-than-average earnings per
share growth should lead over time to the Trent Equity Fund outperforming the
S&P 500. During the four year period 1992-1995, the earnings growth of the
companies in the S&P 500 compounded at 19% annually, well above the long-term
rate of 7%. The first two quarters of 1996 saw an aggregate annualized growth of
8% for S&P 500 companies. Thus, we believe that the return to historical norms
has begun. This outperformance, we believe, is a direct result of the cooling
down of the growth rates of cyclical companies and the market's refocus on
companies with superior long-term growth characteristics such as those in Trent
Equity Fund.
We see a low inflation rate of 2-3% continuing through 1997. We believe
that, by the end of 1997, the 30-year Treasury bond will fall by 0.5% to 1.0%.
While we do not believe the drop in interest rates will have an enhancing effect
on the market's current 18 price/earnings ratio, it will at least support the
current valuation. Thus we see the market growing in concert with earnings
growth, or in the neighborhood of 8-10% over the 15 months to the end of 1997.
We believe that the stock prices of Trent Equity Fund's holdings will mirror
their projected earnings growth rate of 12-14%.
ACTIVITY IN CURRENT HOLDINGS:
Natural Wonders, the mall-based retail chain focused on the enjoyment
of nature, science, and the environment, is up 75% since February 29, 1996 --
the date of the semi-annual report -- as a result of three consecutive quarters
of earnings gains and several months of positive same-store sales comparisons.
Ciba-Geigy, the Switzerland-based pharmaceutical and chemical group, was up 43%
during the six month period. The main catalyst for this rise was the
announcement of Ciba-Geigy's merger with Sandoz, another large Swiss
pharmaceutical company. The new entity will be called Novartis. The Fund enjoyed
a 14% gain in Harley Davidson, the motorcycle manufacturer which controls 50% of
the US market for large motorcycles. Harley is in a strong
<PAGE> 2
earnings growth mode and enjoys huge demand for its products. Libbey, the
dominant institutional tabletop glassware manufacturer with a 60% market share,
was up 16% during the six months. Libbey continues to have a low price/earnings
ratio in comparison to its steady 10-12% growth rate. Family Dollar Stores, the
small-store value retailer, was up 24% during the semi-annual period and is
beginning to enjoy the fruits of a two year repositioning of its promotional
effort. Family Dollar has recently put together back-to-back monthly 13%
positive same-store sales comparisons. Newell Company, a household products
firm, gained 12% during the six month period as we believe the market is
anticipating several consecutive quarters of 15%-plus earnings per share growth.
The largest loser during the semi-annual period was Duracell International, down
13% as a result of sluggish growth in Europe. However, Duracell just recently
announced its acquisition by Gillette, which has moved the price up 42% from
August 31, 1996 to September 30, 1996. UST Inc., the maker of Skoal and
Copenhagen moist smokeless tobacco, was down 10% during the six month period as
a result of the publicity from FDA regulations and litigation. However, we see
continued strong earnings and dividend growth. Westinghouse Electric, a new
addition to the portfolio since February 29, 1996, was down 17%, mostly the
result of timing of purchase just before a market drop-off in July 1996.
NEW HOLDINGS:
During the six month period ended August 31, 1996, the Fund added
Department 56, Federal Home Loan Mortgage Corporation, Marvel Entertainment,
Revlon, Rubbermaid, Thomson Corporation, and Westinghouse Electric. Department
56 designs, imports, and distributes ceramic and porcelain village collectables.
Its two most well-known lines are its original Snow Village Collection and the
Heritage Village Collection. Federal Home Loan Mortgage Corporation, better
known as Freddie Mac, is a quasi-government agency which, along with Fannie Mae,
maintains a secondary market in residential mortgages by pooling individual
mortgages and selling them as securities. Marvel Entertainment is a youth
entertainment company with a variety of formats, which include comic books,
sports and entertainment cards, toys, and stickers. The company is launching a
restaurant chain and a movie production company built around its best-known
characters such as Spiderman, X-Men, the Incredible Hulk, and Captain America.
Revlon, with a market share of 20%, is the leading cosmetic brand distributed
through self-select channels. In recent years Revlon has been the most
innovative cosmetic company in the self-select market. Rubbermaid, a well known
plastic-and-rubber-based household products manufacturer, has struggled recently
with earnings as a result of increases in the price of resin, a leading
component of its products. We believe that, being a commodity, resin prices will
fall in the future and Rubbermaid's earnings should enjoy a significant rebound.
Thomson Corporation is the leading publisher of electronic-based information,
providing information to professions such as law, medicine and accounting and to
the business and financial community. Westinghouse Electric is remaking itself
into primarily a media company and is now the leading TV and radio broadcaster
in the US.
SIGNIFICANT REALIZED GAINS AND LOSSES:
A gain was taken in Saga Communications, a small group of medium-sized
city-based radio stations. Saga has enjoyed the run up in radio stocks in
general as a result of the change in regulations that has allowed for greater
<PAGE> 3
consolidation in the radio business. A loss was taken in Ekco Group, a household
products company focusing on kitchenware, bakeware, brooms and brushes, and pest
control products.
We are very pleased with the performance of Trent Equity Fund for 1996
to date. We thank you for being an investor and look forward to continued strong
performance.
TRENT CAPITAL MANAGEMENT, INC.
TRENT EQUITY FUND
Value of $10,000 vs S & P Index
<TABLE>
<CAPTION>
Trent Equity S & P
Date Fund Index
---- ------------ -----
<S> <C> <C>
8/13/90 10,000 10,000
2/28/91 12,050 11,051
8/31/91 14,000 12,104
2/29/92 15,900 12,826
8/31/92 14,060 13,066
2/28/93 15,045 14,189
8/31/93 16,394 15,053
2/28/94 17,286 15,367
8/31/94 16,497 15,877
2/28/95 15,700 16,496
8/31/95 18,045 19,273
2/29/96 17,877 22,221
8/31/96 19,349 22,880
</TABLE>
Past performance is not predictive of future performance.
This graph is furnished to you in accordance with SEC regulations. It
compares a $10,000 investment in the Trent Equity Fund with The Standard &
Poor's 500 Index, on a cumulative basis. All return calculations reflect the
reinvestment of income, dividends and capital gains distributions, if any, as
well as all fees and expenses. Performance results reflect the total returns of
a predecessor limited partnership managed by Trent Capital Management, prior to
the effective date of the Fund's registration statement, which was September 2,
1992. The limited partnership returns are restated to reflect all fees and
expenses applicable to the Fund. If the limited partnership had been registered
as an investment company under the federal securities laws, its performance
might have been adversely affected because of the additional restrictions
applicable to registered investment companies.
The total returns for the Fund reflect the fact that fees and expenses
in excess of certain expense limits specified in the investment management
agreement have been deferred by Trent Capital Management. Total return results
would have been lower had there been no deferral of fees and expenses in excess
of expense limitations.
Past performance is no guarantee of future performance. Investment
return and the principal value of an investment will fluctuate so that an
investor's shares, when redeemed, may be worth more or less than their original
cost.
<PAGE> 4
TRENT EQUITY FUND
PORTFOLIO OF INVESTMENTS AT AUGUST 31, 1996
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.0% Market Value
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
CHEMICALS: 5.8%
2,800 Ciba-Geigy, ADR.................................................. $ 177,100
----------
COLLECTIBLES: 4.2%
5,400 Department 56, Inc............................................... 128,925
----------
CONSUMER PRODUCTS: 5.7%
5,800 Revlon, Inc...................................................... 173,275
----------
FINANCIAL SERVICES: 10.7%
4,000 American Express Company......................................... 175,000
1,700 Federal Home Loan Mortgage Corporation........................... 150,237
----------
325,237
----------
FOOD PROCESSING: 5.8%
5,200 Nabisco Holdings Corporation, Class A............................ 174,850
----------
HOUSEHOLD PRODUCTS: 19.4%
2,800 Duracell International........................................... 126,350
3,400 First Brands Corporation......................................... 77,350
4,000 Libbey, Inc...................................................... 112,000
5,000 Newell Company................................................... 155,625
4,500 Rubbermaid, Inc.................................................. 119,250
----------
590,575
----------
MEDIA AND BROADCASTING: 7.5%
7,800 Thomson Corporation.............................................. 138,516
5,500 Westinghouse Electric Corporation................................ 90,062
----------
228,578
----------
PHARMACEUTICALS: 4.8%
3,200 Abbott Laboratories.............................................. 144,400
----------
RECREATION: 10.8%
6,200 Harley Davidson, Inc............................................. 254,200
8,500 Marvel Entertainment Group, Inc.................................. 73,313
----------
327,513
----------
</TABLE>
4
<PAGE> 5
TRENT EQUITY FUND
PORTFOLIO OF INVESTMENTS AT AUGUST 31, 1996, CONTINUED
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 99.0% Market Value
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
RETAIL: 14.6%
6,200 Family Dollar Stores............................................. $ 105,400
8,800 Michaels Stores, Inc. (a)........................................ 123,200
44,500 Natural Wonders, Inc. (a)........................................ 214,156
----------
442,756
----------
TELECOMMUNICATIONS: 5.6%
5,000 Century Telephone Enterprises.................................... 169,375
----------
TOBACCO: 4.1%
4,200 UST, Inc......................................................... 126,000
----------
Total Common Stocks (cost $2,855,984)............................ 3,008,584
----------
Principal Amount REPURCHASE AGREEMENT: 1.4%
- ----------------------------------------------------------------------------------------------------
$41,000 Star Bank Repurchase Agreement, 4.75%, dated 8/30/96, due 9/3/96,
collateralized by $45,000 GNMA, 6.50%, due 1/20/24 (proceeds
$41,016) (cost $41,000).......................................... 41,000
----------
Total Investments (cost $2,896,984): 100.4% ..................... 3,049,584
Liabilities less Other Assets: (0.4)%............................ (10,956)
----------
TOTAL NET ASSETS: 100.0% ........................................ $3,038,628
==========
</TABLE>
(a) Non-income producing security.
See accompanying notes to financial statements.
5
<PAGE> 6
TRENT EQUITY FUND
STATEMENT OF ASSETS AND LIABILITIES AT AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS
Investments, at value (identified cost $2,896,984) ............................ $3,049,584
Cash........................................................................... 961
Receivables:
Dividends and interest .................................................. 3,307
Securities sold.......................................................... 427
Prepaid expenses............................................................... 3,908
Deferred organization expenses................................................. 4,674
----------
Total assets ...................................................... 3,062,861
----------
LIABILITIES
Accrued advisory fees ......................................................... 1,403
Payable for Fund shares sold................................................... 10,549
Other accrued expenses......................................................... 12,281
----------
Total liabilities.................................................. 24,233
----------
NET ASSETS (applicable to 308,146 shares outstanding; unlimited shares of no par
value beneficial interest authorized).......................................... $3,038,628
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION VALUE PER SHARE
($3,038,628/308,146 shares) ................................................... $ 9.86
==========
NET ASSETS
At August 31, 1996, net assets consisted of:
Paid-in capital ............................................................... $3,066,300
Accumulated net investment loss................................................ (19,906)
Accumulated net realized loss on investment transactions....................... (160,366)
Net unrealized appreciation of investments..................................... 152,600
----------
Net assets .............................................................. $3,038,628
==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
TRENT EQUITY FUND
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED AUGUST 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Income:
Dividends........................................................... $ 44,045
Interest............................................................ 3,209
---------
Total income.................................................. 47,254
---------
Expenses:
Investment advisory fee............................................. 36,682
Administrative fee.................................................. 12,289
Audit fees.......................................................... 13,249
Accounting, pricing and recordkeeping............................... 12,742
Amortization of organization costs.................................. 7,847
Custodian fees...................................................... 5,258
Legal fees.......................................................... 792
Shareholder servicing costs......................................... 13,547
Printing............................................................ 1,148
Trustees fees....................................................... 3,008
Insurance........................................................... 3,433
Registration and filing fees........................................ 2,280
Other expenses...................................................... 3,751
---------
Total expenses................................................ 116,026
Less: expense reimbursements.................................. (48,866)
---------
Net expenses.................................................. 67,160
---------
NET INVESTMENT LOSS .................................... (19,906)
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss from security transactions........................ (77,268)
Net change in unrealized appreciation of investments................ 285,069
---------
Net realized and unrealized gain on investments............... 207,801
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ... $ 187,895
=========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
TRENT EQUITY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Year Year
Ended Ended
August 31, August 31,
1996 1995
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS FROM:
OPERATIONS
Net investment loss........................................................... $ (19,906) $ (5,209)
Net realized (loss) gain on securities transactions........................... (77,268) 176,864
Net change in unrealized appreciation of securities........................... 285,069 114,544
---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................... 187,895 286,199
---------- ----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net realized gain on investments ($0.985 and $1.925 per
share, respectively)....................................................... (301,203) (642,188)
---------- ----------
TOTAL DIVIDENDS AND DISTRIBUTIONS ...................................... (301,203) (642,188)
---------- ----------
CAPITAL SHARE TRANSACTIONS
Shares sold .................................................................. 223,608 274,615
Shares issued in reinvestment of distributions................................ 280,983 618,038
Shares redeemed............................................................... (1,158,590) (633,949)
---------- ----------
NET (DECREASE) INCREASE IN NET ASSETS FROM SHARE TRANSACTIONS .......... (653,999) 258,704
---------- ----------
TOTAL DECREASE IN NET ASSETS ................................................. (767,307) (97,285)
NET ASSETS:
Beginning of year............................................................. 3,805,935 3,903,220
---------- ----------
END OF YEAR .................................................................. $3,038,628 $3,805,935
========== ==========
CHANGE IN SHARES OUTSTANDING:
Shares sold .................................................................. 23,105 27,358
Shares issued in connection with payment of dividends......................... 32,409 73,141
Shares redeemed............................................................... (119,166) (68,033)
---------- ----------
NET (DECREASE) INCREASE ...................................................... (63,652) 32,466
========== ==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
TRENT EQUITY FUND
FINANCIAL HIGHLIGHTS
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
September 2,
Year Year Year 1992*
Ended Ended Ended through
August 31, August 31, August 31, August 31,
1996 1995 1994 1993
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ................ $ 10.24 $ 11.50 $ 11.66 $ 10.00
Income from Investment Operations:
Net investment loss ........................... (.06) -- (.07) (.08)
Net realized and unrealized gain on investments .67 .67 .15 1.76
------- ------- ------- -------
Total from investment operations .................... .61 .67 .08 1.68
------- ------- ------- -------
Less Distributions:
Dividends (from net investment income) ........ -- -- -- (.01)
Distributions (from capital gains) ............ (.99) (1.93) (.24) (.01)
------- ------- ------- -------
Total Distributions ................................. (.99) (1.93) (.24) (.02)
------- ------- ------- -------
Net Asset Value, End of Period ...................... $ 9.86 $ 10.24 $ 11.50 $ 11.66
======= ======= ======= =======
Total Return ........................................ 7.23% 9.38% 0.64% 16.91%(+)
Ratios/Supplemental Data:
Net assets, end of period (millions) ................ $ 3.0 $ 3.8 $ 3.9 $ 4.7
Ratio of expenses to average net assets:
Before expense reimbursement .................. 3.63% 3.65% 3.16% 3.33%(+)(++)
After expense reimbursement ................... 2.10% 1.85% 1.85% 2.54%(+)(++)
Ratio of net investment loss to average net assets:
Before expense reimbursement .................. (2.15)% (2.00)% (1.68)% (1.84)%(+)(++)
After expense reimbursement ................... (0.62)% (0.15)% (0.36)% (1.05)%(+)(++)
Portfolio turnover .................................. 59.33% 46.52% 149.25% 315.38%
</TABLE>
*Commencement of operations.
(+)Annualized.
(++)Excludes taxes and tax reimbursements of 2.84% of average net assets on an
annualized basis.
See accompanying notes to financial statements.
9
<PAGE> 10
TRENT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS AT AUGUST 31, 1996
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Trent Equity Fund (the "Fund") is a series of shares of beneficial
interest of Professionally Managed Portfolios, which is registered under the
Investment Company Act of 1940 as a diversified, open-end management company.
The Fund began operations on September 2, 1992. The investment objective of the
Fund is to seek capital appreciation, both realized and unrealized. The Fund
seeks to achieve its objective by investing primarily in equity securities.
A. Security Valuation: The Fund's investments are carried at market
value. Securities listed on an exchange or quoted on a national
market system are valued at the last sale price. Other securities
are valued at the last quoted bid price. Securities for which market
quotations are not readily available, if any, are valued by an
independent pricing service or determined following procedures
approved by the Board of Trustees. Short-term investments are valued
at amortized cost which approximates market value.
B. Federal Income Taxes: It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no federal income tax
provision is required for the Fund's tax year ended July 31, 1996.
C. Securities Transactions, Investment Income and Other: Security
transactions are recorded on the trade date. Interest income is
recorded on the accrual basis. Dividend income and distributions to
shareholders are recorded on the ex-dividend date. Income
distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from
generally accepted accounting principles.
D. Use of Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amount of assets and liabilities at the date of the
financial statements. Actual results could differ from those
estimates.
NOTE 2 - COMMITMENTS AND RELATED PARTY TRANSACTIONS
Pursuant to an investment advisory agreement, Trent Capital Management
("TCM") provides the Fund with a continuous program of supervision of the Fund's
assets, including the composition of its portfolio, and furnishes advice and
recommendations with respect to investments, investment policies, and the
purchase and sale of securities. As compensation for its services, TCM receives
a fee at the annual rate of 1.15% of the Fund's average daily net assets. TCM
has voluntarily limited the Fund's expenses to the annual level of 2% of average
daily net assets. Total reimbursed expenses from TCM for the year ended August
31, 1996 was $48,866.
Investment Company Administration Corporation (the "Administrator") acts
as the Fund's Administrator under an Administration Agreement. The Administrator
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
10
<PAGE> 11
TRENT EQUITY FUND
NOTES TO FINANCIAL STATEMENTS, CONTINUED
- --------------------------------------------------------------------------------
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 Administrator receives a monthly fee at the
following annual rate: Under $15 million - $30,000, $15 to $50 million - 0.20%
of average net assets, $50 to $100 million - 0.15% of average net assets, $100
to $150 million - 0.10% of average net assets, over $150 million - 0.05% of
average net assets. The Administrator waived a portion of its fee for the year
ended August 31, 1996.
NOTE 3 - DEFERRED ORGANIZATION EXPENSES
All expenses of the Fund incurred in connection with its organization and
the registration of its shares have been assumed by the Fund.
The organization expenses have been capitalized and are being amortized
over a period of sixty months. Investors purchasing shares of the Fund bear such
expenses only as they are amortized against the Fund's investment income.
In the event any of the initial shares of the Fund are redeemed during the
amortization period, the redemption proceeds will be reduced by a pro rata
portion of any unamortized organization expenses in the same proportion as the
number of initial shares being redeemed bears to the number of initial shares of
the Fund outstanding at the time of redemption.
NOTE 4 - INVESTMENT TRANSACTIONS
Purchases and sales of securities other than short-term investments
aggregated $1,720,627 and $2,678,548, respectively, for the year ended August
31, 1996.
The gross unrealized appreciation and depreciation of portfolio securities
at August 31, 1996 were as follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................... $ 416,685
Unrealized depreciation.......................... (264,085)
---------
Net unrealized appreciation............. $ 152,600
=========
</TABLE>
As of August 31, 1996, aggregate cost for federal income tax purposes was
equal to aggregate cost for book purposes.
11
<PAGE> 12
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Shareholders of
the Trent Equity Fund and
Board of Trustees of
Professionally Managed Portfolios
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of Trent Equity Fund (a series of
Professionally Managed Portfolios) as of August 31, 1996, and the related
statements of operations and changes in net assets for the year then ended and
the financial highlights for the year ended August 31, 1996 and the period
September 30, 1992 to August 31, 1993. 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 audit. The statement of changes in net assets for the year ended
August 31, 1995 and the financial highlights for the years ended August 31, 1994
and 1995 were audited by other auditors whose report dated October 10, 1995
expressed an unqualified opinion on such statement and financial highlights.
We conducted our audit 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
August 31, 1996, by correspondence with the custodian. 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 audit provides 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
Trent Equity Fund as of August 31, 1996, the results of its operations and the
changes in its net assets for the year then ended and the financial highlights
for the year then ended and the period September 2, 1992 to August 31, 1993, in
conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
October 5, 1996
<PAGE> 13
ADVISOR
Trent Capital Management, Inc.
3101 North Elm Street
Suite 150
Greensboro, North Carolina 27408
(910) 282-9302
DISTRIBUTOR
First Fund Distributors, Inc.
4455 East Camelback Road
Suite 261E
Phoenix, Arizona 85018
CUSTODIAN
Star Bank, N.A.
425 Walnut Street
Cincinnati, Ohio 45202
TRANSFER AGENT
American Data Services, Inc.
24 West Carver Street, 2nd Floor
Huntington, New York 11743
AUDITORS
Tait, Weller & Baker
Two Penn Center Plaza
Philadelphia, Pennsylvania 19102
LEGAL COUNSEL
Heller, Ehrman, White & McAuliffe
333 Bush Street
San Francisco, California 94104
This report is intended for shareholders of
Trent Equity Fund and may not be used
as sales literature unless preceded or
accompanied by a current prospectus.
TRENT
EQUITY
FUND
ANNUAL REPORT
FOR THE YEAR ENDED
AUGUST 31, 1996
