PROFESSIONALLY MANAGED PORTFOLIOS, N-30D, 1999-01-07

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N-30D, 1999-01-07

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TITAN FUND
Titan Financial Service Fund

Semi-Annual Report

October 31, 1998
<PAGE>
TITAN INVESTMENT ADVISORS, LLC

Titan Financial Services Fund
9672 Pennsylvania Avenue o Upper Marlboro, Maryland 20772
Telephone: 888-448-4826
Gilbert R. Giordano, President

December 2, 1998

Dear Fellow Shareholder,

As of October 31, 1998, the Titan Financial Services Fund closed at a
price of $14.75. The Fund's performance through October 31, 1998 is as follows:

Cumulative Return
(inception date: May 22, 1996) 55.75%

Average Annual Return
(inception date: May 22, 1996) 19.88%

12-Month Return -7.40%

The stock market has undergone a massive transformation over the last six
months, and I would like to discuss some of the root causes and effects as they
relate to the financial services sector. Towards the end of the third quarter
the financial sector experienced what can best be described as a total melt-down
in equity prices. The financials have truly entered into what has been more than
a correction; a virtual across the board reduction in value of between 35%-50%.
The violent unraveling started to occur during the last two weeks of August with
the fear of a currency collapse in Russia and possible involvement by some large
American banks. The stock market became further irritated as Asia showed no
signs of economic improvement and currency devaluation threatened Argentina and
Brazil. The failure and subsequent rescue of a major Hedge Fund added further
pressure to a strained system. All of these events combined to adversely affect
the market in general and the financials in particular. By way of example the
SNL Thrift Index is down 14.36% year to date. I believe the resultant panic
selling is a severe overreaction.

The fear and pessimism surrounding the financials is over exaggerated.
There has been an absolute failure to make any distinction between domestic
banks conducting business strictly in the U.S. and the money center banks that
are involved in overseas operations. With regard to the threat of foreign
currency risk, the market has not discriminated. Banks of all dimensions have
been found guilty by association. With this wave of indiscriminate selling,
there has been a general disregard for banks exhibiting superior valuations.
There is little consideration given to banks that continue to produce strong
earnings and have little exposure to loss.

<PAGE>
In my opinion, panic selling and the abandonment of favorable valuations
have placed the financials in an interesting light. The banks, particularly the
smaller regionals represent compelling value at this time. Many bank stocks are
now priced very close to their book value and are trading at 10-11 times next
year's earnings. Even assuming that next year's earnings are off 10%, they still
represent outstanding buys. In addition, banks and other financials are now
trading at a 25% discount to the S&P 500. Bear in mind, less than five months
ago, they were trading at a 10%-15% discount. The relative value has widened
considerably. This gross undervaluation affords opportunity. We have been able
to use this period of downward price movement to buy depressed stocks which
presently represent some of our most successful choices. During the past six
months, we added to our positions in the brokerage stocks, particularly Merrill
Lynch and E Trade Group. We feel this sector is substantially undervalued, as
compared to the S&P and the Dow. From time to time, we also purchase
non-financial companies of high quality that have been unfairly driven down by
the market. This has permitted us to acquire such stocks as CIENA and Brunswick,
both of which have performed well in our portfolio so far.

While the recent market turmoil has posed serious challenges to the
financial sector, I believe that the future prospects are quite positive. Once
the merger activity reignites, (it has been slowed down considerably by the year
2000 problem), further industry consolidation can be expected. Banks have been
experiencing a yearly reduction of 3%-4% in deposits and many are forced to
merge in order to grow. Mergers and consolidations reduce operational expenses
and help to increase net profit. Additional positives include a better managed
industry, high asset quality, and the strongest capitalization rate that banks
have seen in the last 30 years.

We believe that the appreciation of small-sized bank stocks, along with
other financials and particularly the brokerages will outperform that of the
market over the next several years. One feature of our Fund that we think makes
it distinct, is that we are heavily invested in it ourselves. We participate in
the Fund's gains and losses along with our fellow investors.

We are looking forward to the next six months with the confidence that
comes from weathering a particularly difficult market and will endeavour to
justify your trust in us.

Very truly yours,
Gilbert R. Giordano

/s/

President
Titan Investment Advisors, LLC

Titan Financial Services Fund's average annualized total return from its
inception on May 22, 1996 through the period ending on September 30, 1998 was
17.38%. The twelve months ending September 30, 1998 showed a total return of
(13.70)%. Results shown are past performance, which should not be regarded as an
indicator of future results. Investment return and principal value will
fluctuate so that an investor's shares, when redeemed, may be worth more or less
than their cost. Titan Financial Services Fund is distributed by First Fund
Distributors, Inc., Phoenix, AZ 85018.
<PAGE>
Titan Financial Service Fund
<TABLE>
<CAPTION>

SCHEDULE OF INVESTMENTS at October 31, 1998 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
Shares COMMON STOCKS: 98.2% Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Agricultural Biotech: 0.3%
<S> <C> <C>
2,000 Monsanto Company........................................................ $ 81,250
--------

Banks: 36.4%
2,000 American Pacific Bank, Class B*......................................... 8,000
8,200 Bank One Corp........................................................... 400,775
2,000 Bank of Amador.......................................................... 28,750
13,600 BankAmerica Corp........................................................ 781,150
7,400 CNBT Bankshares, Inc.................................................... 79,550
3,000 Cathay Bancorp Inc...................................................... 95,250
9,000 Community First Bankshares, Inc......................................... 178,875
21,000 Comstock Bancorp*....................................................... 162,750
1,000 Corporacion Bancaria de Espana S.A., ADR................................ 43,750
4,252 FNB Corp................................................................ 116,930
2,000 FNB Rochester Corp...................................................... 34,000
18,000 Fidelity National Corp.*................................................ 189,000
24,300 First Bank of Philadelphia*............................................. 121,500
1,000 First Commerce Bancshares, Inc., Class A................................ 27,500
1,000 First Hawaiian, Inc.*................................................... 39,875
3,100 First International Bancorp, Inc........................................ 33,519
9,500 First Lehigh Corp.*..................................................... 43,938
3,400 First Oak Brook Bancshares, Inc., Class A............................... 65,450
16,400 First Regional Bancorp*................................................. 137,350
7,449 First Security Corp..................................................... 152,239
3,000 First State Bancorporation.............................................. 58,500
19,899 First Union Corp.(a).................................................... 1,154,142
1,500 Fleet Financial Group, Inc.............................................. 59,906
18,300 Hibernia Corp., Class A................................................. 305,381
14,755 HUBCO, Inc.............................................................. 398,385
12,000 Imperial Bancorp*....................................................... 166,500
2,500 KeyCorp................................................................. 75,781
8,333 Mahaska Investment Company.............................................. 147,911
1,500 Mellon Bank Corp........................................................ 90,188
5,600 NMBT Corp............................................................... 100,100
2,300 National Bank of Canada................................................. 34,419
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

SCHEDULE OF INVESTMENTS at October 31, 1998 (Unaudited), Continued
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Market Value
- ------------------------------------------------------------------------------------------------------------------------------------
Banks, continued
5,610 National City Bancorporation*........................................... $ 151,470
12,777 New England Community Bancorp, Inc., Class A............................ 229,986
20,000 North Fork Bancorporation, Inc.......................................... 397,500
3,500 Northrim Bank........................................................... 49,000
1,500 Norwest Corp.*.......................................................... 55,781
18,000 PNC Bank Corp........................................................... 900,000
21,000 Patriot National Bank*.................................................. 194,250
1,000 Peoples Bank Corp....................................................... 28,500
3,500 Premier Bancshares, Inc................................................. 77,000
9,100 Professional Bancorp, Inc............................................... 145,600
13,000 Ramapo Financial Corp................................................... 89,375
5,400 Redwood Empire Bancorp.................................................. 89,775
1,000 Republic Bancshares, Inc.*.............................................. 19,500
1,000 Republic New York Corp.................................................. 41,813
19,936 Republic Security Financial Corp........................................ 179,422
2,000 Star Banc Corp.(a)...................................................... 151,250
4,100 Sterling Bancorp........................................................ 88,150
1,500 Sterling Bancshares, Inc................................................ 21,375
4,000 Summit Bancorp.......................................................... 151,750
2,000 Summit Bancshares, Inc.................................................. 36,750
1,500 SunTrust Banks, Inc..................................................... 104,531
3,000 Texas Regional Bancshares, Inc., Class A................................ 68,250
1,900 USBANCORP, Inc.......................................................... 35,150
24,200 Union Bankshares Ltd.*.................................................. 263,175
7,878 Western Bancorp......................................................... 248,149
1,000 Westernbank Puerto Rico................................................. 15,062
------
9,163,928
---------
Brokerage Services: 23.2%
17,700 A.G. Edwards, Inc....................................................... 611,756
4,700 Advest Group, Inc....................................................... 97,525
29,050 Bear Stearns Companies, Inc.(a)......................................... 1,036,722
17,200 Donaldson, Lufkin & Jenrette, Inc.(a)................................... 614,900
2,000 E*TRADE Group, Inc.*.................................................... 36,000
3,600 First Albany Companies, Inc............................................. 36,900
3,000 Hambrecht & Quist Group................................................. 57,563
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Consulting Services: 0.1%
3,000 Think New Ideas, Inc.*.................................................. 28,500
------

Data Processing / Management: 0.2%
1,500 First Data Corp......................................................... 39,750
------

Fiber Optics: 2.1%
30,000 CIENA Corp.*(a)......................................................... 515,625
-------

Financial Services: 1.7%
4,000 Allstate Financial Corp................................................. 172,250
1,000 Citigroup, Inc.......................................................... 47,062
10,700 KBK Capital Corp.*...................................................... 106,331
1,000 Morgan Stanley Dean Witter Reynolds & Company........................... 64,750
4,500 PLM International, Inc.................................................. 25,312
------
415,705
-------
Food - Wholesale / Distribution: 0.1%
800 Richfood Holdings, Inc.................................................. 14,200
------

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Home Furnishings: 0.7%
6,500 Furniture Brands International, Inc..................................... $ 139,750
2,000 Stanley Furniture Company, Inc.*........................................ 37,500
------
177,250
-------

Hotels and Motels: 0.3%
2,000 Host Marriott Corp.*.................................................... 29,000
2,000 Marriott International, Inc............................................. 53,750
------
82,750
------

Insurance: 9.8%
1,000 Alfa Corp............................................................... 20,969
3,800 Chicago Title Corp...................................................... 158,888
42,998 Conseco, Inc.(a)........................................................ 1,491,493
2,500 EMC Insurance Group, Inc................................................ 26,563
5,000 Franklin American Corp.*................................................ 11,875
4,000 Frontier Insurance Group, Inc........................................... 65,250
3,000 LaSalle Re Holdings Ltd................................................. 70,875
11,000 National Information Group.............................................. 79,750
3,000 Presidential Life Corp.................................................. 54,375
19,000 Reliance Group Holdings, Inc.(a)........................................ 264,812
4,000 Stewart Information Services............................................ 200,500
1,000 Terra Nova (Bermuda) Holdings Ltd....................................... 27,750
- ------
2,473,100
---------

Leisure and Recreational Products: 1.6%
21,000 Brunswick Corp.......................................................... 408,188
-------

Manufacturing - Auto/Truck Parts and Equipment: 0.3%
8,450 Supreme Industries, Inc.*............................................... 77,634
------

Medical - Health Care Management and Products: 0.6%
43,700 Air Methods Corp.*...................................................... 155,681
-------

Oil Field Machinery and Equipment: 0.1%
2,000 National-Oilwell, Inc.*................................................. 31,750
------
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Oil - US Royalty Trusts: 0.3%
50,000 Freeport-McMoRan Oil and Gas Royalty Trust.............................. 78,125
------

Restaurants: 0.6%
4,500 Outback SteakHouse, Inc.*............................................... 155,813
-------

REITS - Hotel / Restaurant: 0.1%
2,000 Sunstone Hotel Investors, Inc........................................... 18,125
------

Retail: 5.4%
4,500 Costco Companies, Inc.*................................................. 255,375
11,000 Food Lion, Inc., Class A................................................ 121,000
15,000 Food Lion, Inc., Class B................................................ 153,750
43,500 Kmart Corp.............................................................. 614,438
5,000 Lowe's Companies, Inc................................................... 168,438
2,000 Office Depot, Inc.*..................................................... 50,000
------
1,363,001
---------
Telecommunications Equipment: 0.1%
1,000 ADC Telecommunications, Inc.*........................................... 23,000
------

Thrift and Savings / Savings Banks: 13.6%
31,388 Access Anytime Bancorp, Inc.*........................................... 251,104
5,100 Alliance Bancorp of New England, Inc.................................... 51,000
7,400 American Bank of Connecticut............................................ 160,025
6,500 Bancorp Connecticut, Inc................................................ 95,875
2,000 Bayonne Bancshares, Inc................................................. 29,875
3,000 Coastal Bancorp, Inc.................................................... 57,000
3,938 Commercial Federal Corp................................................. 89,343
4,000 Dime Bancorp, Inc....................................................... 95,250
5,200 Downey Financial Corp................................................... 121,875
1,000 First Bell Bancorp, Inc................................................. 14,500
1,100 First Washington Bancorp, Inc........................................... 24,200
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Water Treatment Systems: 0.1%
1,000 United States Filter Corp.*............................................. 21,188
------

Total Common Stocks (cost $23,369,069).................................. 24,719,993
----------

CLOSED-END FUNDS - DOMESTIC: 2.0%
- ------------------------------------------------------------------------------------------------------------------------------------
2,000 BlackRock California Insured Municipal 2008 Term Trust.................. 31,875
14,800 John Hancock Bank and Thrift Opportunity................................ 172,975
8,600 Petroleum & Resources Corp.............................................. 285,950
-------

Total Closed-End Funds - Domestic (cost $474,134)....................... 490,800
-------
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Total Long Equity Options (cost $89,306)................................ 128,750
-------

Principal Amount REPURCHASE AGREEMENT: 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
$130,000 Star Bank Repurchase Agreement, 4.70%, dated 10/30/1998,
due 11/2/1998, collateralized by $135,000 GNMA, 7.375%,
due 5/20/2024 (proceeds $130,051) (cost $130,000)....................... 130,000
-------

Total Investments in Securities (cost $24,062,509+): 101.2%............. 25,469,543
----------
See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

Total Call Options Written (proceeds $165,968).......................... (229,569)
--------

Liabilities in excess of Other Assets: (0.3)%........................... (86,670)
-------
Total Net Assets: 100.0% ............................................... $25,153,304
===========
<FN>

* Non-income producing security.
(a) Security subject to call option.

+At October 31, 1998, the cost of securities and options for Federal income tax
purposes was the same as the basis for financial reporting. Unrealized
appreciation and depreciation of securities and options were as follows:

Gross unrealized appreciation........................................... $ 2,163,160
Gross unrealized depreciation........................................... (819,727)
--------
Net unrealized appreciation.................................... $ 1,343,433
===========
</FN>
</TABLE>

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund
<TABLE>
<CAPTION>

STATEMENT OF ASSETS AND LIABILITIES at October 31, 1998 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------

ASSETS
<S> <C>
Investments in securities, at value (cost $24,062,509) ................................ $25,469,543
Cash................................................................................... 637
Receivables:
Securities sold.................................................................. 105,716
Dividends and interest .......................................................... 17,320
Fund shares sold................................................................. 11,000
Prepaid expenses....................................................................... 18,815
------
Total assets .............................................................. 25,623,031
----------

LIABILITIES
Options written, at value (proceeds $165,968).......................................... 229,569
Payables:
Advisory fees.................................................................... 19,504
Administration fee............................................................... 3,901
Distribution fees................................................................ 4,876
Securities purchased............................................................. 204,634
Fund shares redeemed............................................................. 2,652
Accrued expenses....................................................................... 4,591
-----
Total liabilities.......................................................... 469,727
-------

NET ASSETS $25,153,304
===========

Net asset value, offering and redemption price per share
($25,153,304/1,705,394 shares outstanding;
unlimited number of shares authorized without par value) ........................ $14.75
======

COMPONENTS OF NET ASSETS
Paid-in capital ....................................................................... $25,240,936
Accumulated net investment loss........................................................ (62,758)
Accumulated net realized loss on investments........................................... (1,368,307)
Net unrealized appreciation on investments............................................. 1,343,433
---------
Net assets ...................................................................... $25,153,304
===========

</TABLE>

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund
<TABLE>
<CAPTION>

STATEMENT OF OPERATIONS - For the Six Months Ended October 31, 1998 (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------

INVESTMENT INCOME
Income
<S> <C>
Dividends........................................................................ $ 196,705
Interest......................................................................... 22,427
------
Total income............................................................... 219,132
-------

Expenses
Advisory fees.................................................................... 146,379
Distribution fees................................................................ 36,595
Administration fee............................................................... 29,276
Custody fees..................................................................... 23,843
Transfer agent fees.............................................................. 13,667
Fund accounting fees............................................................. 13,560
Audit fee........................................................................ 4,304
Trustee fees..................................................................... 3,875
Reports to shareholders.......................................................... 3,665
Legal fees....................................................................... 2,903
Miscellaneous.................................................................... 2,670
Insurance........................................................................ 1,153
-----
Total expenses............................................................. 281,890
-------
Net investment loss ................................................. (62,758)
-------

REALIZED AND UNREALIZED LOSS ON INVESTMENTS Net realized loss from:
Security transactions...................................................... (3,118,621)
Option transactions........................................................ (192,818)
--------
Net realized loss.................................................... (3,311,439)
Net change in unrealized appreciation on investments............................. (5,047,871)
----------
Net realized and unrealized loss on investments............................ (8,359,310)
----------
Net decrease in net assets resulting from operations ................ $(8,422,068)
===========
</TABLE>

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund
<TABLE>
<CAPTION>

STATEMENT OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year
Ended Ended
October 31, 1998# April 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------

(DECREASE) INCREASE IN NET ASSETS FROM:
OPERATIONS
<S> <C> <C>
Net investment loss.................................................. $ (62,758) $ (109,724)
Net realized (loss) gain from security transactions.................. (3,311,439) 2,577,248
Net change in unrealized appreciation on investments................. (5,047,871) 5,740,855
---------- ---------
Net (decrease) increase in net assets
resulting from operations ...................................... (8,422,068) 8,208,379
---------- ---------

DISTRIBUTIONS TO SHAREHOLDERS
Net realized gain from security transactions......................... -0- (975,314)
- --------

CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from net change in
outstanding shares (a)............................................ 469,322 18,292,734
------- ----------
Total (decrease) increase in net assets .......................... (7,952,746) 25,525,799

NET ASSETS
Beginning of period.................................................. 33,106,050 7,580,251
---------- ---------
End of period .......................................................... $25,153,304 $33,106,050
=========== ===========
<FN>

(a) A summary of capital shares transactions is as follows:
Six Months Year
Ended Ended
October 31, 1998# April 30, 1998
- ------------------------------------------------------------------------------------------------------------------------------------

Shares Value Shares Value
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold................................ 172,184 $2,931,800 1,044,410 $17,567,019
Shares issued in reinvestment
of distribution......................... -0- -0- 56,239 960,009
Shares redeemed............................ (155,320) (2,462,478) (13,754) (234,294)
-------- ---------- ------- --------
Net increase............................... 16,864 $ 469,322 1,086,895 $18,292,734
====== ========= ========= ===========

#Unaudited.

</FN>
</TABLE>

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund
<TABLE>
<CAPTION>

FINANCIAL HIGHLIGHTS
For a capital share outstanding throughout each period
- ------------------------------------------------------------------------------------------------------------------------------------
Six Months Year May 22, 1996*
Ended Ended through
October 31, 1998# April 30, 1998 April 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------

<S> <C> <C> <C>
Net asset value, beginning of period...................... $19.61 $12.60 $10.00
Income from investment operations:
Net investment (loss) income........................ (0.04) (0.06) 0.04
Net realized and unrealized (loss) gain
on investments.................................... (4.82) 7.93 2.62
----- ---- ----
Total from investment operations.......................... (4.86) 7.87 2.66
----- ---- ----

Less distributions:
From net investment income.......................... 0.00 0.00 (0.06)
From net capital gains.............................. 0.00 (0.86) 0.00
---- ----- ----
Total distributions....................................... 0.00 (0.86) (0.06)
---- ----- -----

Net asset value, end of period............................ $14.75 $19.61 $12.60
====== ====== ======

Total return.............................................. (24.78)% 63.47% 26.67%

Ratios/supplemental data:
Net assets, end of period (millions)...................... $ 25.2 $ 33.1 $ 7.6

Ratio of expenses to average net assets:
Before expense reimbursement........................ 1.93%+ 2.10% 3.14%+
After expense reimbursement......................... 1.93%+ 2.27% 2.49%+

Ratio of net investment (loss) income to average net assets:
Before expense reimbursement........................ (0.43)%+ (0.44)% (0.33)%+
After expense reimbursement......................... (0.43)%+ (0.61)% 0.33%+

Portfolio turnover rate................................... 114.26% 107.12% 97.84%
<FN>

*Commencement of operations.

#Unaudited.

+Annualized.
</FN>
</TABLE>

See accompanying Notes to Financial Statements.
<PAGE>
Titan Financial Service Fund

NOTES TO FINANCIAL STATEMENTS at October 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------

NOTE 1 - ORGANIZATION

The Titan Financial Services 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 investment management company. The Fund began
operations on May 22, 1996. The primary investment objective of the Fund is
capital appreciation. The secondary objective is moderate income.

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 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.

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 federal income tax provision is
required.

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 are 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 six months ended October 31, 1998, Titan Investment Advisors, LLC
(the "Advisor") provided the Fund with investment management services under an
Investment Advisory Agreement. The Advisor furnished all investment advice,
office space, facilities, 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. For
the six months ended October 31, 1998, the Fund incurred $146,379 in Advisory
fees.

Investment Company Administration, L.L.C. (the "Administrator") acts as
the Fund's Administrator under an Administration Agreement. The Administrator
prepares various federal and state regulatory filings,

<PAGE>
Titan Financial Service Fund

NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued

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 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 six months ended October 31, 1998, the Fund incurred $29,276 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 the 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 will 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. During the six months ended October 31, 1998, the
Fund paid fees of $36,595 to the Advisor.

NOTE 5 - PURCHASES AND SALES OF SECURITIES

The cost of purchases and the proceeds from sales of securities, excluding
U.S. Government obligations and short-term investments, for the six months ended
October 31, 1998, were $33,616,615 and $31,662,332, respectively.

<PAGE>
NOTES TO FINANCIAL STATEMENTS (Unaudited), Continued
The activity in call options written during the six months ended October
31, 1998 is summarized as follows:
<TABLE>
<CAPTION>

Contracts Written Amount

<S> <C> <C>
105 Options outstanding, beginning of period................................ $ 191,306

(962) Options purchased....................................................... 1,602,642

(22) Options closed.......................................................... (1,919,094)

60 Options exercised....................................................... (1,969)

230 Purchased options expired............................................... 50,453
--- ------

(589) Options outstanding at October 31, 1998................................. (76,662)
==== =======

Unrealized appreciation at October 31, 1998............................. (24,157)
-------

Market value of options at October 31, 1998............................. $ (100,819)
==========

Average fair market value of options for
the six months ended October 31, 1998................................ $ 96,441
========

Net trading losses on options for the
six months ended October 31, 1998..................................... $ (192,818)
==========
</TABLE>

<PAGE>
Advisor

Titan Investment Advisors, LLC
9672 Pennsylvania Avenue
Upper Marlboro, MD 20772
888-44-TITAN
Account Inquiries 1-800-282-2340

Distributor

First Fund Distributors, Inc.
4455 E. Camelback Rd., Suite 261E
Phoenix, AZ 85018

Custodian

Star Bank, N.A.
425 Walnut St.
Cincinnati, OH 45202

Shareholder Service and Transfer Agent

American Data Services, Inc.
P.O. Box 5536
Hauppauge, NY 11788-0132

Independent Auditors

Tait, Weller & Baker
8 Penn Center Plaza, Suite 800
Philadelphia, PA 19103

Counsel to the Trust

Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, CA 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.