June 8, 1998
Securities and Exchange Commission
Attn: Filing Desk, Stop 1-4
450 Fifth Street, N.W.
Washington, DC 20549
Re: Professionally Managed Portfolios
File No. 811-5037
CIK No. 811030
Dear Sir or Madam:
On behalf of the above Registrant and pursuant to Rule 30b-2 under the
Investment Company Act of 1940, I enclose for filing via EDGAR, a copy of the
Annual Report to shareholders of the Pro-Conscience Womens Equity Mutual Fund
series of the Registrant for the year ended March 31, 1998.
If you have any questions, please contact me at (602) 952-1100.
Sincerely yours,
/s/
Robert H. Wadsworth
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
Annual Report
For the Year Ended
March 31, 1998
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
April 10, 1998
Dear Shareholders:
We wish to thank you for your response to our questionnaire in which you told
us, not only who you are, but also gave us input regarding your risk preference
and what you consider are important women's issues. The results of the
questionnaire are set forth in our newsletter and we will keep your comments in
mind as we move forward in our portfolio management, social screening, and
dialogues with portfolio companies.
As of March 31, 1998, the Fund's average annual total returns are as follows:
<TABLE>
<CAPTION>
One Three Five From
Year Year Year Inception at 10/1/93
- ------------------------------------------------------------------------------------------------------------------------------------
Pro-Conscience
<S> <C> <C> <C>
Women's Equity Mutual Fund 50.77% 23.62% - 16.60%
</TABLE>
The current economic expansion is approximately seven years old. No one knows
when the next recession will occur, but it is important to understand that
economic growth cycles do not have a predetermined life expectancy.
Historically, precursors of economic problems have included excess inventory
accumulation, labor shortages that lead to wage growth, low productivity, weak
corporate profits, and tight monetary policies aimed at reducing inflation.
Sometimes an exogenous event such as a sharp increase in oil prices, or
political turmoil can lead to a set of developments which result in a recession.
The current Asian financial crisis is an example which has given the market some
concerns. So far, indications are that the concerns generated from Asian
problems will not derail the current favorable economic trend in the US. We
believe that the most likely scenario for the next year will be a slower but
real GDP growth of about 2 to 3 percent with continued low inflation and
interest rates. We expect the stock market to continue to do well in this
favorable condition.
Recent purchases in the Fund reflect our effort to find companies with
sustainable growth strategies that also have reasonable valuations given the new
highs in the market. We continue to favor technology, financial institutions,
consumer and healthcare stocks.
In the questionnaire you told us that pay equality, women and minorities on the
board, and women and minorities in senior management remain top issues for you.
During the coming proxy season we will continue to use our proxy votes, as well
as our letters and articles, to be a voice for women.
As always we hope you will continue to provide us with any comments and
suggestions and we thank you for your support.
Sincerely yours,
/s/
Linda C.Y. Pei
President
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
Value of $10,000 vs the S&P 500 Index
Average Annual Total Return
Period Ended March 31, 1998
1 Year.....................50.77%
Since Inception (10/1/93)..16.60%
Qtr Adj Fund Adj S&P
10/1/93 10000 10000
12/31/93 10130 10181.3
3/31/94 10460 9791.424
6/30/94 10126.3 9825.809
9/30/94 10684.3 10315.4
12/31/94 10125.3 10311.11
3/31/95 10561.3 11314.13
6/30/95 10646.4 12393.43
9/30/95 11401.5 13377.46
12/31/95 11842.9 14181.13
3/31/96 12269.4 14945.18
6/30/96 12444.4 15605.53
9/30/96 12991.1 16094.42
12/31/96 13558.6 17441.53
3/31/97 13241.2 17903.53
6/30/97 15583.1 21023.34
9/30/97 16469.5 22600.83
12/31/97 17434.3 23257.35
3/31/98 19964.4 26499.46
Past performance is not predictive of future performance.
The S&P 500 is a broad market-weighted average of U. S. blue-chip
companies. The Dow Jones Industrial Average includes 30 large companies. All
indexes are unmanaged and returns include reinvested dividends.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
SCHEDULE OF INVESTMENTS at March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 98.0% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Durables: 2.7%
<S> <C> <C>
2,400 Harley-Davidson, Inc.................................................... $ 79,200
1,500 Honda Motor Company, Ltd................................................ 106,500
-------
185,700
-------
Consumer Products and Services: 19.3%
2,600 American Greetings Corp., Class A....................................... 119,600
2,000 Avon Products, Inc...................................................... 156,000
2,700 Coca-Cola Company....................................................... 209,081
2,500 Colgate-Palmolive Company............................................... 216,563
3,875 Dollar General Corp..................................................... 149,914
1,300 Gillette Company........................................................ 154,294
2,000 Jones Apparel Group, Inc.*.............................................. 110,125
1,900 Kimberly-Clark Corp..................................................... 95,237
4,200 Richfood Holdings, Inc.................................................. 134,400
-------
1,345,214
---------
Energy and Resources: 1.1%
900 Amoco Corp.............................................................. 77,738
------
Financial Services: 17.1%
862 American International Group, Inc....................................... 108,558
1,600 BankAmerica Corp........................................................ 132,200
1,740 BankBoston Corp......................................................... 191,835
1,600 Chubb Corp.............................................................. 125,400
2,800 Federal National Mortgage Association................................... 177,100
1,800 First Tennessee National Corp........................................... 57,825
1,000 NationsBank Corp........................................................ 72,938
5,250 Norwest Corp............................................................ 218,203
2,000 UNUM Corp............................................................... 110,375
-------
1,194,434
---------
Furnishings: 5.5%
3,200 Herman Miller, Inc...................................................... 107,300
2,600 Leggett & Platt, Inc.................................................... 133,737
2,900 Newell Company.......................................................... 140,469
-------
381,506
-------
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
SCHEDULE OF INVESTMENTS at March 31, 1998, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care: 16.0%
1,900 Becton, Dickinson and Company........................................... $ 129,319
2,800 Johnson & Johnson....................................................... 205,275
3,300 Medtronic, Inc.......................................................... 171,187
1,800 Merck & Company, Inc.................................................... 231,075
2,900 Schering-Plough Corp.................................................... 236,894
3,000 Stryker Corp............................................................ 140,625
-------
1,114,375
---------
Industrial Materials: 1.9%
2,600 Praxair, Inc............................................................ 133,738
-------
Instruments: 1.5%
2,400 Teleflex, Inc........................................................... 100,800
-------
Media and Publishing: 1.8%
1,200 Walt Disney Company..................................................... 128,100
-------
Producer Products: 5.0%
5,000 Baldor Electric Company................................................. 134,687
3,250 Illinois Tool Works, Inc................................................ 210,438
-------
345,125
-------
Retail: 2.2%
2,900 Costco Companies, Inc.*................................................. 155,150
-------
Technology: 12.7%
1,300 Automatic Data Processing, Inc.......................................... 88,481
2,250 Cisco Systems, Inc.*.................................................... 153,844
1,200 Hewlett-Packard Company................................................. 76,050
1,300 Intel Corp.............................................................. 101,481
3,000 Microsoft Corp.*........................................................ 268,500
1,250 Sanmina Corp.*.......................................................... 87,422
1,050 Xerox Corp.............................................................. 111,759
-------
887,537
-------
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
SCHEDULE OF INVESTMENTS at March 31, 1998, Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications - Equipment: 5.5%
1,800 Ameritech Corp.......................................................... $ 88,987
1,500 Century Telephone Enterprises, Inc...................................... 91,594
1,600 Lucent Technologies, Inc................................................ 204,600
- -------
385,181
-------
Transportation: 1.2%
2,700 Southwest Airlines Company.............................................. 79,819
------
Utilities: 4.5%
2,100 BellSouth Corp.......................................................... 141,881
4,000 SBC Communications, Inc................................................. 174,500
-------
316,381
-------
Total Common Stocks (cost $4,148,378)................................... 6,830,798
---------
Principal Amount REPURCHASE AGREEMENT: 1.9%
- ------------------------------------------------------------------------------------------------------------------------------------
$133,000 Star Bank Repurchase Agreement, 5.00%, dated 3/31/1998,
due 4/1/1998, collateralized by $137,869 GNMA, 7.375%,
due 5/20/2024 (proceeds $133,018) (cost $133,000)....................... 133,000
-------
Total Investment in Securities (cost $4,281,378+): 99.9%................ 6,963,798
Other Assets less Liabilities: 0.1%..................................... 7,464
-----
Total Net Assets: 100.0% ............................................... $6,971,262
==========
<FN>
*Non-income producing security.
+At March 31, 1998, the cost of securities for Federal tax purposes was the same
as the basis for financial reporting. Unrealized appreciation and depreciation
of securities were as follows:
Gross unrealized appreciation..................................... $2,686,961
Gross unrealized depreciation..................................... (4,541)
------
Net unrealized appreciation................................ $2,682,420
==========
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES at March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
<S> <C>
Investments in securities, at value (cost $4,281,378).................................. $ 6,963,798
Cash................................................................................... 49
Receivables:
Due from Advisor................................................................. 6,355
Fund shares sold................................................................. 2,101
Securities sold.................................................................. 12,175
Dividends and interest........................................................... 4,591
Prepaid expenses....................................................................... 4,803
-----
Total assets .............................................................. 6,993,872
---------
LIABILITIES
Payables:
Administration fee............................................................... 2,453
Distribution fees................................................................ 3,849
Accrued expenses ...................................................................... 16,308
------
Total liabilities.......................................................... 22,610
------
NET ASSETS .............................................................................. $ 6,971,262
===========
Net asset value, offering and redemption price per share
($6,971,262/385,793 shares outstanding;
unlimited number of shares authorized without par value) ........................ $18.07
======
COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $ 4,263,151
Accumulated net investment loss........................................................ (3,305)
Undistributed net realized gain on investments......................................... 28,996
Net unrealized appreciation on investments............................................. 2,682,420
---------
Net assets ...................................................................... $ 6,971,262
===========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS - For the Year Ended March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Income
<S> <C>
Dividends........................................................................ $ 58,863
Interest......................................................................... 9,552
-----
Total income............................................................... 68,415
------
Expenses
Advisory fees.................................................................... 55,046
Administration fee............................................................... 30,000
Transfer agent fees.............................................................. 17,333
Distribution fees................................................................ 13,762
Fund accounting fees............................................................. 12,966
Audit fee........................................................................ 12,001
Custody fees..................................................................... 7,603
Registration fees ............................................................... 6,403
Reports to shareholders.......................................................... 5,825
Trustee fees .................................................................... 4,400
Miscellaneous.................................................................... 3,262
Legal fees....................................................................... 2,741
Insurance........................................................................ 458
---
Total expenses............................................................. 171,800
Less: expenses waived and reimbursed....................................... (89,230)
-------
Net expenses............................................................... 82,570
------
Net investment loss ............................................... (14,155)
-------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from security transactions .......................................... 87,152
Net change in unrealized appreciation on investments .................................. 2,196,962
---------
Net realized and unrealized gain on investments ........................... 2,284,114
---------
Net increase in net assets resulting from operations ................ $ 2,269,959
===========
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Year Ended Year Ended
March 31, 1998 March 31, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment loss .................................................. $ (14,155) $ (1,834)
Net realized gain from security transactions .......................... 87,152 75,795
Net change in unrealized appreciation on investments................... 2,196,962 153,825
--------- -------
Net increase in net assets resulting from operations ............ 2,269,959 227,786
--------- -------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income.................................................. -0- (2,977)
Net realized gain on investments....................................... (54,283) -0-
------- -----
Total distributions to shareholders ............................. (54,283) (2,977)
------- ------
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a) ............................................. 310,806 911,202
------- -------
Total increase in net assets .................................... 2,526,482 1,136,011
NET ASSETS
Beginning of year...................................................... 4,444,780 3,308,769
--------- ---------
End of year .......................................................... $6,971,262 $4,444,780
========== ==========
<FN>
(a) A summary of capital shares transactions is as follows:
Year Ended Year Ended
March 31, 1998 March 31, 1997
Shares Value Shares Value
Shares sold ...................................... 79,313 $1,193,662 107,417 $1,339,632
Shares issued in reinvestment of distribution..... 3,414 52,744 233 2,810
Shares redeemed .................................. (64,217) (935,600) (35,270) (431,240)
------- -------- ------- --------
Net increase...................................... 18,510 $ 310,806 72,380 $ 911,202
====== ========= ====== =========
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
October 1, 1993*
Year Ended March 31, through
1998 1997 1996 1995 March 31, 1994
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period...... $12.10 $11.22 $ 9.93 $10.46 $10.00
Income from investment operations:
Net investment income (loss) ........... (0.04) (0.01) 0.01 0.36 (0.01)
Net realized and unrealized
gain (loss) on investments .......... 6.16 0.90 1.59 (0.28) 0.47
---- ---- ---- ----- ----
Total from investment operations........... 6.12 0.89 1.60 0.08 0.46
---- ---- ---- ---- ----
Less distributions:
From net investment income.............. 0.00 (0.01) (0.31) (0.02) 0.00
From net capital gains ................. (0.15) 0.00 0.00 (0.59) 0.00
----- ---- ---- ----- ----
Total distributions........................ (0.15) (0.01) (0.31) (0.61) 0.00
----- ----- ----- ----- ----
Net asset value, end of period ............ $18.07 $12.10 $11.22 $ 9.93 $10.46
====== ====== ====== ====== ======
Total return .............................. 50.77% 7.92% 16.17% 0.97% 4.60%
Ratios/supplemental data:
Net assets, end of period (millions)....... $ 7.0 $ 4.4 $ 3.3 $ 1.5 $ 0.6
Ratio of expenses to average net assets:
Before expense reimbursement and waiver. 3.12% 4.09% 4.75% 8.69% 21.93%+
After expense reimbursement and waiver.. 1.50% 1.50% 1.50% 1.50% 1.50%+
Ratio of net investment income (loss) to average net assets:
Before expense reimbursement and waiver. (1.88%) (2.64%) (1.97%) (1.97%) (20.74%)+
After expense reimbursement and waiver.. (0.26%) (0.05%) 1.28% 5.22% (0.31%)+
Portfolio turnover rate ................... 27.21% 51.13% 120.64% 705.88% 139.26%
Average commission rate paid per share++.... $.0567 $.0548 - - -
<FN>
*Commencement of operations.
+Annualized.
++For fiscal years beginning on or after September 1, 1995, a fund is required
to disclose its average commission rate paid per share for security trades on
which commissions are charged. This amount may vary from period to period and
fund to fund depending on the mix of trades executed in various markets where
trading practices and commission rate structures may differ.
</FN>
</TABLE>
See accompanying Notes to Financial Statements.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
NOTES TO FINANCIAL STATEMENTS at March 31, 1998
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The Pro-Conscience Women's Equity Mutual Fund (the "Fund") is a
diversified 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 an open-end management investment company. The
Fund's primary investment objective is to provide long-term capital
appreciation. 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 sales 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 have been no sales and other
over-the-counter securities 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.
B. 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 income tax provision is required. The
Fund maintains a January 31 tax year end.
C. Security Transactions, Investment Income and Distributions. As is
common in the industry, security transactions are accounted for on
the trade date. The cost of securities owned on realized transactions
is relieved on a first-in, first-out basis. Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
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
amounts of assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
NOTE 3 - COMMITMENTS AND OTHER RELATED PARTY TRANSACTIONS For the year
ended March 31, 1998, 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,
certain administrative services, and 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 a portion of its fee and reimbursed expenses
totaling $89,230 for the year ended March 31, 1998. United States Trust Company
of Boston (the "Sub-Advisor") acts as Sub-Advisor to the Fund and is entitled to
compensation for its services from the Advisor.
<PAGE>
Pro-Conscience Womens Equity Mutual Fund
Advancing Gender Equality in the Workplace
NOTES TO FINANCIAL STATEMENTS, Continued
- --------------------------------------------------------------------------------
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 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 daily net assets
$50 to $100 million 0.15% of average daily net assets
$100 to $150 million 0.10% of average daily net assets
Over $150 million 0.05% of average daily net assets
For the year ended March 31, 1998, the Fund incurred $30,000 in
Administration fees.
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 Administrator.
Certain officers and trustees of the Trust are also officers and/or
directors of the Administrator and Distributor.
NOTE 4 - DISTRIBUTION PLAN
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 Advisor as Distribution Coordinator at an annual rate of up to 0.25% of the
average daily net assets of the Fund. The fee is paid to the Advisor as
reimbursement for, or in anticipation of, expenses incurred for
distribution-related activity. For the year ended March 31, 1998, the Fund paid
fees of $13,762 to the Advisor.
NOTE 5 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and the proceeds from sales of securities, other
than short-term investments, for the year ended March 31, 1998, were $1,692,674
and $1,451,505, respectively.
NOTE 6 - YEAR 2000 ISSUE (Unaudited)
Like other mutual funds, financial and business organizations and
individuals around the world, the Fund could be adversely affected if the
computer systems it uses, and those used by the Fund's brokers and other major
service providers, do not properly process and calculate date-related
information and data from and after January 1, 2000. This is commonly known as
the "Year 2000 issue". Management is assessing its computer systems and the
systems compliance issues of its brokers and major service providers. Based on
information available to management, the Fund's brokers and major service
providers are taking steps that they believe are reasonably designed to address
the Year 2000 issue with respect to computer systems that they use. At this
time, however, there can be no assurance that these steps will be sufficient,
and the failure of a timely completion of all necessary procedures could have a
material adverse effect on the Fund's operations. Management will continue to
monitor the status of and its exposure to, this issue.
<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 schedule of investments, of Pro-Conscience Women's Equity Mutual
Fund, a series of Professionally Managed Portfolios, as of March 31, 1998, 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 four 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 audit.
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 March
31, 1998, 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
Pro-Conscience Women's Equity Mutual Fund as of March 31, 1998, 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 four 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 24, 1998
<PAGE>
Advisor
Pro-Conscience Funds, Inc.
625 Market Street, 16th Floor
San Francisco, California 94105
(415) 547-9135
--
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, Inc.
P.O. Box 5536
Hauppauge, NY 11788
(800) 385-7003
--
Auditors
Tait, Weller & Baker
8 Penn Center, Suite 800
Philadelphia, Pennsylvania 19101
--
Legal Counsel
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, California 94104
This report is intended for shareholders of the Fund and may not be used as
sales literature unless preceded or accompanied by a current prospectus.
Past performance results shown in this report should not be considered a
representation of future performance. Share price and returns will
fluctuate so that shares, when redeemed may be worth more or less than
their original cost. Statements and other information herein are dated and
are subject to change.
