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[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
DECEMBER 31, 1995
SEMI-ANNUAL REPORT
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Table of Contents
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The Parkstone Mutual Funds December 31, 1995
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Portfolio Performance Discussion............................................ 6
Statements of Assets and Liabilities........................................ 29
Statements of Operations.................................................... 33
Statements of Changes in Net Assets......................................... 37
Schedules of Portfolio Investments.......................................... 42
Notes to Financial Statements............................................... 88
Financial Highlights........................................................ 99
</TABLE>
1
<PAGE>
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Message From Your Chairman
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The Parkstone Mutual Funds December 31, 1995
Dear Shareholders:
We are very pleased to report that the six months ended December 31, 1995, were
good ones for the financial markets and for The Parkstone Mutual Funds. During
the period, as our economy continued to cool off and inflation remained
dormant, both the stock and bond markets gained ground. At the same time, total
net assets under management in our Funds continued to grow--increasing from
$5.1 billion on June 30, 1995, to $5.5 billion at year's end.
We are also pleased to report that all of The Parkstone Mutual Funds posted
positive returns for the period--despite continued nervousness in the fixed-
income markets over interest rates and the recent sell-off of technology stocks
in the equity markets. As always, security selection once again proved to be
critical to success. Given the environment, our managers redoubled their
efforts to seek out value--and as you will see in the reports that follow,
their efforts paid off handsomely for our investors in many cases.
INDUSTRY RECOGNITION FOR THE FUNDS
We are also extremely pleased to report that the Parkstone fixed-income funds
were recognized for their strong performance by Mutual Funds magazine in the
January 1996 issue.
- -------
* Morningstar proprietary ratings reflect historical risk-adjusted performance
as of December 31, 1995. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-, five- and 10-year average annual returns in
excess of 90-day Treasury bill returns with appropriate fee adjustments, and a
risk factor that reflects fund performance below 90-day T-bill returns. The
Parkstone Government Income Fund received an overall five-star rating based on
its three-year performance. The Parkstone Bond Fund received a four-star rating
for overall performance and its performance over the past three and five years.
The Parkstone Small Capitalization Fund received a four-star rating for overall
performance and its five-year performance; its three-year performance rated
three stars. There were 765 funds in the fixed-income universe and 1,394 in the
equity universe. The ratings were awarded for periods ending December 31, 1995.
Ten percent of the funds in an investment category receive five stars and 22.5%
receive four stars. The ratings were earned by the Institutional Shares only.
Star ratings for the other classes may vary and are available only for classes
with at least three years of performance history.
In addition, several of the Funds were also recognized as solid performers by
Morningstar, Inc. during the period. As we go to press, the Parkstone
Government Income Fund has been given a five-star rating--Morningstar's
highest--for its three-year performance, and the Bond Fund and Small-
Capitalization Fund have received four stars.*
The ratings were awarded to Institutional Shares only.
LARGE CAPITALIZATION FUND LAUNCHED
In our continuing effort to better meet the investment objectives of our
individual shareholders, we launched the Parkstone Large Capitalization Fund on
December 28, 1995. The Fund was initially created by absorbing portions of some
of the large-company holdings, those with market capitalizations of $5 billion
or more, that had been held in the Equity Fund. We will continue to build a
portfolio of large, growth-oriented companies in this Fund. Although the
fundamental strategy of the Equity Fund--seeking stocks of companies expected
to experience strong sales and revenue growth--has not changed, the Fund will
now focus on mid-sized companies, those with market capitalizations of $750
million to $5 billion. As a result, our shareholders will now be able to choose
among U.S. equity funds that focus on large, medium-sized or small companies.
For more complete information on the Large Capitalization Equity Fund,
including fees, expenses and sales charges, please call 1-800-451-8377 for a
prospectus, which you should read carefully before investing or sending money.
IN CLOSING . . .
In the pages that follow, you will find a detailed discussion of the
performance of each of The Parkstone Mutual Funds during the six months ended
December 31, 1995. You will also find a letter from our Investment Adviser,
which includes an economic outlook for the coming months--and
2
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Message From Your Chairman, continued
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The Parkstone Mutual Funds December 31, 1995
a discussion of why we believe they will be strong ones for the financial
markets.
Finally, we thank you for your continued confidence in us. We look forward to
providing you with superior investment management and serving your needs now
and in the year ahead. As always, if you have any questions or require any
assistance, please don't hesitate to call us at 1-800-451-8377.
Sincerely,
/s/ Stephen G. Mintos
Stephen G. Mintos
Chairman
The Parkstone Mutual Funds
January 23, 1996
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NOTICE TO SHAREHOLDERS
PLEASE BE ADVISED OF THE FOLLOWING FACTS ABOUT MUTUAL FUNDS:
. YOUR PRINCIPAL IS AT RISK.
. NOT AN OBLIGATION OF FIRST OF AMERICA.
. NO FDIC COVERAGE.
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3
<PAGE>
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Message From Your Investment Adviser
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The Parkstone Mutual Funds December 31, 1995
Dear Fellow Shareholders:
Where are the markets going in 1996? At this time of year, economists
prognosticate and market strategists strategize as each tries to provide the
definitive view of what lies ahead. As we go to press, economists are concerned
that a slowing economy may lead to little growth or perhaps even a recession
later in 1996. The market strategists are worried about corporate profits
declining combined with stock valuations that are at high levels. With interest
rates so low, still others predict that rates must go up during the year simply
because inflation ought to increase at some point during the business cycle.
RECESSION UNLIKELY
Our outlook is much more sanguine. We believe a recession is possible but
rather unlikely, given the dynamics of an environment in which economic growth
should continue to build this year. While interest rates may stop going down, a
large increase is unlikely due to well-controlled inflation. Our prediction for
the stock market is the same as J.P. Morgan's many years ago when he was asked
what stocks could be expected to do in the coming year. His answer:
"fluctuate."
Of course, forecasting is difficult business and rarely does anyone call the
market's movements dead on. Nevertheless, we believe the fundamentals give us
far more reason to be optimistic than pessimistic.
Although economic growth has dropped off sharply since the third quarter of
1995, it is important to recognize that a number of impediments to growth are
temporary. For example, as 1995 drew to a close, there was a sharp contraction
in defense-related government spending. While part of this may be attributed to
unresolved budget issues and the subsequent government shutdowns, a more
important factor was the unusual increase in spending in the third quarter of
the year--which was timed by the Washington bureaucracy to occur before the new
fiscal year began and which inflated growth numbers for the quarter. Despite
predictions of doom and gloom due to weakness in the recent growth numbers,
much of this talk is not consistent with the real underlying condition of the
economy.
GROWTH HAS SLOWED--NOT STOPPED
We believe, as surely as tulips rise from the ground in the spring, that the
economy will strengthen in the coming months. One of several factors supporting
our view is the continuing decline in interest rates, which makes another
refinancing boomlet likely in the housing sector. Also in recent months,
construction permits have exceeded the level of housing starts, which
historically leads to an increase. Consequently, housing and related
expenditures that follow that market, such as consumer durables purchases,
should help foster growth in the months ahead.
In addition, due to the attractiveness of goods priced in U.S. dollars vis-a-
vis other currencies, we also expect to see exports grow by 5.0%-6.0%, less
than the 7.5%-8.0% pace of the last several years, but significant nonetheless.
Even more importantly, economic growth in both Japan and Latin America is
expected to be much stronger in the coming year--markets where the U.S. can
expect to see export growth.
In our last letter, we noted that capacity utilization in manufacturing was
declining and a slowdown in business investment growth would follow. Indeed,
after two to three years of low double-digit growth, business investment is
likely to slow to only 3% or so during 1996, making a positive contribution to
the economy but reducing its overall stimulus. Nevertheless, here too, there is
a silver lining: With lower demand, we expect capacity utilization to decline
to about 80% by mid-1996. In the past, such a level of manufacturing activity
has been indicative of an economy with low underlying inflation and, hence, a
bias on the part of the Federal Reserve toward stable to lower interest rates.
FOR THE GOOD OF THE PARTIES
Nevertheless, consumer psychology is very fragile, and one factor that could
dampen enthusiasm and economic activity would be the lack of a budget agreement
by the politicians in Washington. Given the intransigence of the two sides,
reaching an accord will be very difficult. The assumption we must now make is
that a satisfactory compromise will be reached simply because it is good for
both
4
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Message From Your Investment Adviser, continued
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The Parkstone Mutual Funds December 31, 1995
political parties. Without a compromise, the odds of economic recession
increase--which is hardly the environment to be desired in an election year
when voters are openly voicing their dissatisfaction with both parties.
NO CRYSTAL BALL IS PERFECTLY CLEAR
Accurately predicting what the financial markets are likely to do even in the
best of circumstances is extremely difficult. Nevertheless, it seems that while
the growth of the economy is slowing, it is still positive and should continue
to be over the next year. In fact, we wouldn't be surprised to see the economy
strengthen as the year progresses. Nevertheless, corporate profits could very
likely be flat over the coming months, and corporate profitability is one of
the key factors in determining stock prices. The message to the investor is
clear--stock selection will be critical to success in 1996.
Historically, when a substantial market gain of 20% or more has been realized
in the third year of a President's term, the market rose during the following
election year, with gains averaging about 11%. Although past performance is not
necessarily an indication of how the market will perform in the future, we
believe we could see much the same in 1996. But, as Yogi Berra once said, "It
ain't over till it's over."
Sincerely,
/s/ Richard A. Wolf
Richard A. Wolf, CFA
President and Chief Investment Officer
First of America Investment Corporation
January 23, 1996
5
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Portfolio Performance Discussion
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The Parkstone Mutual Funds December 31, 1995
The following fund-specific discussions are intended to help you understand the
performance of your investment in The Parkstone Mutual Funds. The charts
represent the growth of a $10,000 investment in each of The Parkstone Mutual
Funds since its inception. The ending balance on December 31, 1995, shows how
your account would have grown had you invested $10,000 when the Fund was
introduced. Performance for Investor A, B, C and Institutional Shares is
represented by a blue line. We've also included the growth of an appropriate
market index for your reference. Past performance is not indicative of future
performance.
EQUITY FUND
After leading the market's march upward for more than a year, technology stocks
fell out of favor as 1995 drew to a close. With a minefield of fourth-quarter
earnings releases to be crossed, the market was nervous about the ability of
tech companies to sustain the exponential earnings growth they had shown over
the past year. In December, investors fled to high-quality, large-
capitalization stocks, and technology stocks began to fall. Semi-conductor
stocks took the brunt of the sell-off. The value of many of our holdings in
this industry and in tech stocks such as Motorola and Silicon Graphics fell as
the market treated even minor earnings disappointments harshly.
On the other hand, several of our holdings performed very well during the same
period. The value of our holdings in PeopleSoft, Idexx Labs, Fore Systems and
HealthSouth posted gains despite the market's shift away from smaller-cap,
aggressive growth companies. Even more impressively, Hospitality Franchise
System posted a gain of more than 60%.
Nevertheless, despite five very strong months, the Fund's performance for the
six months ended December 31, 1995, suffered. The total return for the period
was 12.99% (Investor A Shares).+
TECH STOCKS--BENT NOT BROKEN
While a cloud now hovers over technology stocks, it is important to keep in
mind that the fundamentals of many of these companies have not changed. While
the days of explosive growth may be behind them as the capital spending boom
ends, demand for their products is still strong--and very unlikely to dry up
and blow away anytime in the near future. Consequently, we are optimistic about
the long-term prospects for these companies. In the months ahead, we would look
to capitalize on buying opportunities that further price declines may create.
While no year in the market is average, stocks have gained--on average--
approximately 10% a year over the last several decades. Looking ahead, we see
no fundamental reason why we can't have a "normal" 10% year in the stock market
in 1996. As always, stock selection will be absolutely critical to earning a
positive return.
As of December 31, 1995, the Fund's top five holdings were First Data Corp.
(4.28%), Hospitality Franchise System (3.68%), Oracle Systems (3.30%), Gillette
(2.84%) and CUC International (2.69%).
- -------
+ The total return with the 4.50% sales charge was 7.91% for the period.
6
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Portfolio Performance Discussion, continued
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The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- -------------------------------------------------
<S> <C> <C> <C>
Investor A* 23.76% 14.21% 13.92%
- -------------------------------------------------
Institutional 29.86% 15.36% 14.71%
- -------------------------------------------------
* Reflects 4.50% Sales Charge
</TABLE>
Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A Institutional S&P 500
<S> <C> <C> <C>
10/88 9,551 10,000 10,000
6/89 11,159 11,683 11,673
6/90 13,305 13,930 13,599
6/91 13,245 13,867 14,628
6/92 15,255 15,972 16,590
6/93 18,524 19,381 18,851
6/94 18,048 18,909 19,116
6/95 22,533 23,674 24,100
12/95 25,461 26,767 26,222
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------
<S> <C> <C>
- -----------------------------------------
Investor B** 24.59% 9.28%
- -----------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge
</TABLE>
Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B S&P 500
<S> <C> <C>
2/94 10,000 10,000
6/94 8,430 9,344
6/95 10,486 11,780
12/95 11,844 13,481
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- ---------------------------------------------------
<S> <C> <C> <C>
- ---------------------------------------------------
Investor C*** 27.92% 14.97% 14.44%
- ---------------------------------------------------
*** Reflects Applicable Contingent Deferred Sales
Charge
</TABLE>
Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C S&P 500
<S> <C> <C>
10/88 10,000 10,000
6/89 11,583 11,673
6/90 13,930 13,599
6/91 13,867 14,628
6/92 15,972 16,590
6/93 19,381 18,851
6/94 18,909 19,116
6/95 23,364 24,100
12/95 26,315 26,222
</TABLE>
The Fund's performance is compared to the Standard & Poor's 500 Index, which
represents the performance of the U.S. stock market as a whole. The index is
unmanaged and does not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance
of the Parkstone Equity Fund reflects the deduction of fees for these value-
added services. Past performance is not predictive of future results.
7
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Mutual Funds December 31, 1995
HIGH INCOME EQUITY FUND
The results of our effort to realign the Fund began to show in the six months
ended December 31, 1995. During the period, many of the companies added to the
portfolio in the spring of 1995 performed extremely well. Most notably, the
value of our holdings in Eli Lilly rose more than 40%; Johnson & Johnson and
American Home Products were also strong contributors with gains of more than
25%. Even our holdings in utilities--a sector noted for yield, not capital
gains--gained substantial ground as interest rates dropped.
As a result, the performance of the Fund during the six months ended December
31, 1995, was out- standing, with a return of 14.34% for the period (Investor A
Shares).+ Income-oriented funds generally underperform industry averages in
strong markets, but the Fund beat the 8.80% return of its benchmark, the S&P
500, for the period. Conse- quently, while we are still in the process of fine-
tuning the portfolio to make it less sensitive to interest-rate changes, we are
very pleased with our results to date.
As of December 31, 1995, the Fund's top five holdings were Eli Lilly (3.38%),
UST (3.33%), Procter & Gamble (3.29%), Service Corp. International (3.05%) and
Royal Dutch Petroleum (3.04%).
POSITIONED FOR SLOWER GROWTH
While there may be some pickup in activity toward the end of the year, overall,
we expect to see the economy grow at a slower rate in 1996 than it did in 1995,
and we expect to see opportunities arise in sectors relatively unaffected by
economic down- turns such as utilities, energy and consumer staples. As a
result, we have maintained our weighting in companies such as Coca-Cola,
Procter & Gamble and FPL Group in recent months.
As we continue to seek out opportunities to enhance yield and fine-tune the
portfolio, we believe that the Fund is now even better positioned to meet our
shareholders' objectives without assuming unnecessary risks.
- -------
+ The total return with the maximum 4.50% sales charge was 9.21% for the
period.
8
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- ---------------------------------------------------
<S> <C> <C> <C>
- ---------------------------------------------------
Investor A* 21.67% 11.42% 12.00%
- ---------------------------------------------------
Institutional 27.73% 12.55% 12.79%
- ---------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
High Income Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional S&P 500
<S> <C> <C> <C>
10/88 9,551 10,000 10,000
6/89 11,172 11,697 11,673
6/90 12,777 13,378 13,599
6/91 13,828 14,477 14,628
6/92 15,565 16,296 16,590
6/93 18,165 19,022 18,851
6/94 17,870 18,731 19,116
6/95 19,714 20,708 24,100
12/95 22,540 23,711 26,222
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------
Since
Inception
1 Year (2/4/94)
- -----------------------------------
<S> <C> <C>
Investor B** 22.55% 5.02%
- -----------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
High Income Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** S&P 500
<S> <C> <C>
2/94 10,000 10,000
6/94 8,762 9,344
6/95 9,595 11,780
12/95 10,980 13,481
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- ---------------------------------------------------
<S> <C> <C> <C>
Investor C*** 26.13% 12.27% 12.60%
- ---------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
High Income Equity Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C*** S&P 500
<S> <C> <C>
10/88 10,000 10,000
6/89 11,597 11,673
6/90 13,378 13,599
6/91 14,477 14,628
6/92 16,296 16,590
6/93 19,022 18,851
6/94 18,731 19,116
6/95 20,550 24,100
12/95 23,417 26,222
</TABLE>
The Fund's performance is compared to the Standard & Poor's 500 Index, which
represents the performance of the U.S. stock market as a whole. The index is
unmanaged and does not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance
of the Parkstone High Income Equity Fund reflects the deduction of fees for
these value-added services. Past performance is not predictive of future
results.
9
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Portfolio Performance Discussion, continued
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The Parkstone Mutual Funds December 31, 1995
SMALL CAPITALIZATION FUND*
After a year of chasing technology stocks upward, investors decided the
industry was going out of business in late December. Tech stocks tumbled--and
soon, companies across the board felt the impact as investors, seeking
security, fled to blue chips. Nevertheless, as the dust settled, it was clear
that the small-cap companies, particularly small-cap tech companies, had taken
the hardest fall as many stock prices declined 30% to 60% in November and
December.
Although the Fund was heavily weighted in this area, the Fund significantly
outperformed its industry benchmark. We are pleased to report that the Fund
returned 17.11% for the six-month period and 35.67% for the year ended December
31, 1995 (Investor A Shares).+ By comparison, the Russell 2000 Index was up
6.16% for the six months and 21.46% for the year.
A RANGE OF POSITIVE CONTRIBUTORS
Health-care was a very positive contributor virtually all year with companies
such as Orthodonic Centers of America and Omnicare up 94% and 65%,
respectively. In the financial sector, Amerin Corp. was up 52% and Aames
Financial, up 31%. In addition, Corrections Corp. of America increased 78%, and
Studio Plus Hotels was up 38%.
TECH STOCKS BACK ON-LINE
Regardless of investors' perceptions, the fundamentals of the technology
industry have not changed in the last 60 days. We believe that many of these
companies are very strong, and demand for their products should grow
dramatically in the coming years. We don't expect tech stock prices to
skyrocket as they did for most of 1995, but rather to stabilize and then begin
to rise as the industry continues to expand in 1996. Consequently, we viewed
the recent sell-off as a buying opportunity for long-term investors. Technology
companies are simply out of favor, not out of business.
As of December 31, 1995, the Fund's top five holdings were Omnicare (3.78%),
Credit Acceptance Corp. (3.55%), Concord EFS (3.13%), Micro Warehouse (3.07%)
and McAfee Associates (2.75%).
- -------
* Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure, and by definition, are not as well
established as "blue chip" companies. Historically, stocks of smaller companies
have experienced a greater degree of market volatility than stocks on average.
+ The total return with the maximum 4.50% sales charge was 11.84% and 29.58%
for the six- and 12-month periods, respectively.
10
<PAGE>
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Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- -----------------------------------------------------
<S> <C> <C> <C>
Investor A * 29.58% 23.16% 20.01%
- -----------------------------------------------------
Institutional 35.86% 24.47% 20.90%
- -----------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A Institutional Russell 2000
<S> <C> <C> <C>
10/88 9,551 10,000 10,000
6/89 11,136 11,660 11,512
6/90 14,285 14,957 11,862
6/91 13,320 13,946 12,008
6/92 15,045 15,752 13,753
6/93 21,931 22,962 17,324
6/94 21,811 22,927 18,086
6/95 31,599 33,318 21,716
12/95 37,007 39,019 23,054
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ----------------------------------------
Since
Inception
1 Years (2/4/94)
- ----------------------------------------
<S> <C> <C>
Investor B ** 30.81% 20.49%
- ----------------------------------------
</TABLE>
** Reflects Applicable Contingent Defered
Sales Charge
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B Russell 2000
<S> <C> <C>
2/94 10,000 10,000
6/94 8,382 9,071
6/95 12,155 10,892
12/95 14,268 12,227
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------
Since
Inception
1 Year 5 Year (10/31/88)
- -----------------------------------------------------
<S> <C> <C> <C>
Investor C *** 34.31% 24.25% 20.75%
- -----------------------------------------------------
</TABLE>
*** Reflects Applicable Contigent Deferred
Sales Charge
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C Russell 2000
<S> <C> <C>
10/88 10,000 10,000
6/89 11,560 11,512
6/90 14,957 11,862
6/91 13,946 12,008
6/92 15,752 13,753
6/93 22,962 17,324
6/94 22,927 18,086
6/95 33,100 21,716
12/95 38,673 23,054
</TABLE>
The Fund's performance is compared to the Russell 2000 Index, which represents
the performance of domestically traded common stocks of small to mid-sized
companies. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Small Capitalization Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results.
11
<PAGE>
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Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
INTERNATIONAL DISCOVERY FUND*
After several years in the doldrums, the Japanese stock market rebounded
strongly in the second half of 1995. European markets also achieved good
returns during the period, while markets in emerging economies generally
experienced modest declines. With investments in all three areas, the Fund had
positive returns during the six months ended December 31, 1995, but
underperformed its benchmark, the EAFE Index. The Fund's return for the period
was 3.35% (Investor A Shares)+, compared to 12.57% for the index.
It is important to note, however, that the EAFE Index is heavily weighted in
Japanese securities and has no exposure to Latin American markets and many
smaller Asian markets. Consequently, the Index is not a true reflection of the
markets in which widely diversified international funds like ours invest. We
believe that diversification is the key to solid performance--and to that end,
the Fund remains highly diversified with over 80 holdings in 25 different
markets around the world.
OVERSEAS OPPORTUNITIES PICK UP
Given the fact that the U.S. economy is slowing and corporate profitability is
expected to be relatively flat in the coming months, we see real opportunity
for investors in overseas markets. The Japanese economy is expected to continue
to pick up steam and, with this in mind, we have increased our holdings there.
We believe that Continental Europe is also very attractive. While the economies
there are sluggish, stocks are still attractively priced versus their U.S.
counterparts. Interest rates are coming down. Even more importantly, companies
in the region are only now beginning the restructuring process that U.S.
companies began over a decade ago. As a result, we expect to see the
profitability and, in turn, the stock prices of many European corporations
increase in the coming year.
As of December 31, 1995, the Fund's top five holdings were BIC (2.21%), United
Engineers (2.06%), Hermes International (2.01%), Astra A Free (2.00%) and
Castorama Dubois Investisse (1.94%).
- -------
* International investing is subject to certain risk factors such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and/or differences in auditing and other financial standards.
+ The total return with the maximum sales charge of 4.50% was -1.33% for the
period.
12
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------
Since
Inception
1 Year (12/29/92)
- ---------------------------------------------
<S> <C> <C>
Investor A * 3.02% 8.50%
- ---------------------------------------------
Institutional 8.02% 10.47%
- ---------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Investor A Institutional Australia & Far East
<S> <C> <C> <C>
12/92 9,551 10,000 10,000
6/93 10,994 11,552 12,228
6/94 12,642 13,299 14,104
6/95 12,366 13,051 14,115
12/95 12,780 13,491 15,889
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------
Since
Inception
1 Year (2/4/94)
- ---------------------------------------------
<S> <C> <C>
Investor B ** 2.76% -5.61%
- ---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Investor B Australia & Far East
<S> <C> <C>
2/94 10,000 10,000
6/94 8,981 9,971
6/95 8,728 9,979
12/95 8,958 11,052
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------
Since
Inception
1 Year (12/29/92)
- ---------------------------------------------
<S> <C> <C>
Investor C *** 7.21% 10.56%
- ---------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Investor C Australia & Far East
<S> <C> <C>
12/92 10,000 10,000
6/93 11,452 12,228
6/94 13,299 14,104
6/95 13,146 14,115
12/95 13,526 15,889
</TABLE>
The Fund's performance is compared to the Morgan Stanley Capital International
Europe, Australia and Far East (EAFE) Index, which represents the performance
of the major stock markets in those regions. The index is unmanaged and does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The performance of the
Parkstone International Discovery Fund reflects the deduction of fees for these
value-added services. Past performance is not predictive of future results.
13
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
BALANCED FUND
During the six months ended December 31, 1995, the bond portion of the
portfolio posted gains as interest rates declined. The results of the equity
portion of the portfolio, however, were somewhat disappointing. Due to our
heavy weighting in the technology sector, performance suffered as tech stocks
took a beating in December. Nonetheless, we are extremely pleased to report
that for the six months ended December 31, 1995, the Fund posted a gain of
9.15% (Investor A Shares).+
In addition, as we had planned, approximately 10% of the Fund's assets were
invested in international markets during the period. We are pleased to report
that these investments also made a positive contribution to performance during
the period.
OVERSEAS HOLDINGS ADD BALLAST
In the months ahead, we expect the international component of the portfolio to
be an even stronger contributor to performance. On average, the U.S. economy
grew faster than the world economy in 1995. Now, however, our economy is
slowing and, in the months ahead, we expect to see corporate profits decline.
Opportunities in the domestic stock market are not expected to be as plentiful
as they were in the past year.
At the same time, the Japanese economy is rebounding and growth is picking up
in Latin America. While economies are slowing in Europe, companies there are
taking their first steps toward downsizing and maximizing efficiency--steps
which should increase their profitability and value in the year ahead.
Consequently, the addition of international stocks will allow shareholders to
participate in these opportunities--and to help weather any minor slowdown in
the U.S. economy.
As of December 31, 1995, the top five equity holdings of the Fund were First
Data Corp. (1.39%), Hospitality Franchise System (1.11%), Oracle Corp. (1.04%),
Gillette (.93%) and CUC International (0.88%). The average maturity of the
Fund's fixed-income holdings was 7.87 years, and their credit quality was AAA.
- -------
+ The total return with the maximum 4.50% sales charge was 4.27% for the
period.
14
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------
Since
Inception
1 Year (1/31/92)
- ------------------------------------------
<S> <C> <C>
Investor A * 17.09% 9.10%
- ------------------------------------------
Institutional 22.95% 10.52%
- ------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
BALANCED FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A Institutional S&P 500 Salomon Broad Index
<S> <C> <C> <C> <C>
1/92 9,551 10,000 10,000 10,000
6/92 9,354 9,794 10,121 10,418
6/93 11,013 11,523 11,500 11,666
6/94 10,834 11,357 11,662 11,528
6/95 12,889 13,540 14,702 12,975
12/95 14,068 14,799 16,827 13,796
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------
Since
Inception
1 Year (2/4/94)
- ------------------------------------------
<S> <C> <C>
Investor B ** 17.90% 7.06%
- ------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
BALANCED FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A S&P 500 Salomon Broad Index
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 8,820 9,344 9,497
6/95 10,434 11,780 10,689
12/95 11,390 13,481 11,366
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------
Since
Inception
1 Year (1/31/92)
- ------------------------------------------
<S> <C> <C>
Investor C *** 21.52% 9.98%
- ------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge
</TABLE>
BALANCED FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C S&P 500 Salomon Broad Index
<S> <C> <C> <C>
1/92 10,000 10,000 10,000
6/92 9,697 10,121 10,418
6/93 11,523 11,500 11,666
6/94 11,357 11,662 11,528
6/95 13,348 14,702 12,975
12/95 14,520 16,827 13,796
</TABLE>
The Fund's performance is compared to the Standard & Poor's 500 Index, a broad
measure of the stock market as a whole, and the Salomon Broad Index, which
represents the performance of the overall bond market. The indices are
unmanaged and do not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance
of the Parkstone Balanced Fund reflects the deduction of fees for these value-
added services. Past performance is not predictive of future results.
15
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE FIXED-INCOME FUNDS
The six months ended December 31, 1995, were good ones for bond investors. In
reaction to the slowing economy and the Federal Reserve's actions to reduce
short-term rates, the markets rallied. Over the period, interest rates fell
across the yield curve. And, after one of the toughest years on record, all
sectors of the marketplace posted positive results for 1995.
During the period, corporate bonds did particularly well as balance sheets
strengthened and credit- worthiness improved dramatically across all
industries. Only mortgage-backed securities suffered as lower interest rates
increased the possibility of a new round of mortgage pre-payments. As a result,
this sector underperformed.
THE LIMITED MATURITY BOND FUND
The Limited Maturity Bond Fund was heavily overweighted in corporate securities
throughout much of the second half of 1995. However, because the Fund is
focused on the short end of the yield curve, total returns were not as strong
as those from funds with longer maturities. As of December 31, 1995, the
average maturity of the holdings in the Fund was 2.97 years. Nevertheless, we
are pleased to report that for the six months ended December 31, 1995, the Fund
posted a gain of 3.90% (Investor A Shares).+
At period's end, the Fund held approximately 30% of its assets in U.S. Treasury
securities, 18% in U.S. Government agency securities, 11% in asset-backed
issues and 41% in corporate bonds. The average credit quality of the securities
in the portfolio was AAA.
- -------
+ Total return with the maximum sales charge of 4.00% was -0.21% for the six
months ended December 31, 1995.
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ----------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- ----------------------------------------------------
<S> <C> <C> <C>
Investor A * 6.54% 6.03% 6.64%
- ----------------------------------------------------
Institutional 11.30% 7.00% 7.33%
- ----------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
LIMITED MATURITY BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A Institutional Salomon 1-5 Year Investment-Grade
<S> <C> <C> <C>
10/88 9,597 10,000 10,000
6/89 10,143 10,570 10,646
6/90 10,864 11,320 11,514
6/91 11,805 12,301 12,726
6/92 13,104 13,654 14,241
6/93 14,147 14,743 15,461
6/94 14,193 14,807 15,589
6/95 15,261 15,956 16,960
12/95 15,856 16,605 17,721
</TABLE>
16
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ---------------------------------------------------
<S> <C> <C>
Investor B** 6.31% 2.19%
- ---------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Limited Maturity Bond Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon 1-5 Year
Investor B** Investment-Grade
<S> <C> <C>
2/94 10,000 10,000
6/94 9,408 9,781
6/95 10,056 10,641
12/95 10,423 11,119
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
- -----------------------------------------------------------
Investor C*** 8.00% 6.05% 6.66%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Limited Maturity Bond Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon 1-5 Year
Investor C*** Investment-Grade
<S> <C> <C>
10/88 10,000 10,000
6/89 10,470 10,646
6/90 11,320 11,514
6/91 12,301 12,726
6/92 13,654 14,241
6/93 14,743 15,461
6/94 14,807 15,589
6/95 15,336 16,960
12/95 15,884 17,721
</TABLE>
The Fund's performance is compared to the Salomon 1-5 Year Investment-Grade
Bond Index, which represents the performance of U.S. Government and investment-
grade corporate bonds with maturities of 1 to 5 years. The index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Parkstone Limited Maturity Bond Fund reflects the deduction of fees for these
value-added services. Past performance is not predictive of future results.
----
17
----
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE BOND FUND
The longer the maturity of the bonds in a fund's portfolio, the greater the
impact the decline in interest rates had on its share price. As a result, with
an average maturity of 7.73 years at period's end, the Bond Fund did
particularly well in the second half of 1995. The portfolio was over-weighted
in corporate securities, which were among the market's best performers during
the year. In addition, the Fund was underweighted in mortgage-backed securities
and consequently, did not suffer noticeably as pre-payment jitters rattled this
market. As a result, for the six months ended December 31, 1995, the Fund
surpassed industry averages and posted a total return of 5.93% (Investor A
Shares).+
- -------
+ Total return with the maximum sales charge of 4.00% was 1.72% for the six
months ended December 31, 1995.
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- --------------------------------------------------------
<S> <C> <C> <C>
Investor A * 12.40% 7.79% 8.06%
- --------------------------------------------------------
Institutional 18.12% 8.89% 8.82%
- --------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional Saloman
Broad Index
<S> <C> <C> <C>
10/88 9,597 10,000 10,000
6/89 10,213 10,642 10,801
6/90 10,922 11,381 11,635
6/91 11,883 12,382 12,896
6/92 13,483 14,050 14,722
6/93 15,092 15,714 16,485
6/94 14,847 15,474 16,290
6/95 16,459 17,297 18,334
12/95 17,434 18,341 19,567
</TABLE>
18
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------
Since
Inception
1 Year (2/4/94)
- ---------------------------------------------
<S> <C> <C>
Investor B ** 12.86% 3.67%
- ---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** Saloman
Broad Index
<S> <C> <C>
2/94 10,000 10,000
6/94 9,144 9,497
6/95 10,138 10,689
12/95 10,711 11,366
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- -------------------------------------------------------
<S> <C> <C> <C>
Investor C *** 15.06% 8.11% 8.28%
- -------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C*** Saloman
Broad Index
<S> <C> <C>
10/88 10,000 10,000
6/89 10,542 10,801
6/90 11,381 11,635
6/91 12,382 12,896
6/92 14,050 14,722
6/93 15,714 16,485
6/94 15,474 16,290
6/95 16,776 18,334
12/95 17,696 19,567
</TABLE>
The Fund's performance is compared to the Salomon Broad Index, which represents
the performance of the overall bond market. The index is unmanaged and does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone Bond Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results.
19
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
The Fund's primary holdings--U.S. Government and agency securities--were solid
performers during this period, benefiting from the drop in interest rates.
There was, however, growing concern in the market about the possibility of pre-
payments on mortgage-backed securities. Consequently, while we tried to reduce
our exposure in this sector, the Fund's holdings acted as a drag on performance
late in the year. Nonetheless, we are pleased to report that for the six months
ended December 31, 1995, the Fund produced a total return of 4.43% (Investor A
Shares).+
At period's end, the Fund held approximately 52% of its assets in U.S. Treasury
securities, 36% in U.S. Government agency securities and 11% in asset-backed
and agency-backed issues. The average maturity of the Fund was 4.32 years.
- -------
+Total return with the maximum sales charge of 4.00% was .29% for the six
months ended December 31, 1995.
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- -------------------------------------------------------
<S> <C> <C> <C>
Investor A * 8.72% 6.42% 6.94%
- -------------------------------------------------------
Insitutional 13.53% 7.39% 7.62%
- -------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional Salomon 1-10 Year
Treasury
<S> <C> <C> <C>
10/88 9,597 10,000 10,000
6/89 10,069 10,492 10,696
6/90 10,781 11,234 11,506
6/91 11,785 12,280 12,710
6/92 13,203 13,757 14,345
6/93 14,380 14,987 15,803
6/94 14,251 14,867 15,780
6/95 15,490 16,209 17,301
12/95 16,177 16,934 18,181
</TABLE>
20
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ----------------------------------------
Since
Inception
1 Year (2/4/94)
- ----------------------------------------
<S> <C> <C>
Investor B ** 8.44% 2.35%
- ----------------------------------------
</TABLE>
** Reflects Appicable Contingent Deferred
Sales Charge
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** Salomon 1-10
Year Treasury
<S> <C> <C>
2/94 10,000 10,000
6/94 9,290 9,669
6/95 10,037 10,601
12/95 10,454 11,123
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ---------------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- ---------------------------------------------------------
<S> <C> <C> <C>
Investor C *** 10.76% 6.52% 7.01%
- ---------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C*** Salomon 1-10
Year Treasury
<S> <C> <C>
10/88 10,000 10,000
6/89 10,392 10,696
6/90 11,234 11,506
6/91 12,280 12,710
6/92 13,757 14,345
6/93 14,987 15,803
6/94 14,867 15,780
6/95 15,642 17,301
12/95 16,256 18,181
</TABLE>
The Fund's performance is compared to the Salomon 1-10 Year Treasury Index,
which represents the performance of Treasury bonds in that maturity range. The
index is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Intermediate Government Obligations Fund reflects
the deduction of fees for these value-added services. Past performance is not
predictive of future results.
21
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE U.S. GOVERNMENT INCOME FUND
Not all mortgage-backed securities suffered as interest rates fell and anxiety
about pre-payments rippled through the marketplace. Seasoned mortgage pass-
through securities issued by government agencies performed well during the
period, issues in which the Fund's holdings were concentrated. As a result, the
Fund benefited and, for the six months ended December 31, 1995, posted a total
return of 5.46% (Investor A Shares).+
At period's end, the Fund held approximately 68% of its assets in mortgage-
backed securities issued by government corporations (Ginnie Maes and Freddie
Macs) and 30% in U.S. Treasury securities. The average maturity of the Fund's
holdings was 7.66 years.
- -------
+ Total return with the maximum sales charge of 4.00% was 1.26% for the six
months ended December 31, 1995.
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1995
- -------------------------------------------
Since
Inception
1 Year (11/12/92)
- -------------------------------------------
<S> <C> <C>
Investor A* 9.03% 5.05%
- -------------------------------------------
Institutional 13.85% 6.60%
- -------------------------------------------
</TABLE>
U.S. Government Income Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional Salomon 1-10 Year
Treasury
<S> <C> <C> <C>
11/92 9,597 10,000 10,000
6/93 10,110 10,537 10,677
6/94 10,205 10,647 10,661
6/95 11,069 11,573 11,689
12/95 11,673 12,219 12,264
</TABLE>
22
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------
Since
Inception
1 Year (2/4/94)
- -----------------------------------------
<S> <C> <C>
Investor B ** 8.86% 3.50%
- -----------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
U.S. Government Income Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** Salomon 1-10 Year
Treasury
<S> <C> <C>
2/94 10,000 10,000
6/94 9,394 9,669
6/95 10,148 10,601
12/95 10,679 11,123
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- --------------------------------------------
Since
Inception
1 Year (11/12/92)
- --------------------------------------------
<S> <C> <C>
Investor C *** 11.85% 5.36%
- --------------------------------------------
</TABLE>
*** Reflects Applicable Coningent Deferred
Sales Charge
U.S. Government Income Fund
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C*** Salomon 1-10 Year
Treasury
<S> <C> <C>
11/92 10,000 10,000
6/93 10,437 10,677
6/94 10,647 10,661
6/95 11,207 11,689
12/95 11,778 12,264
</TABLE>
The Fund's performance is compared to the Salomon 1-10 Year Treasury Index,
which represents the performance of Treasury bonds in that maturity range. The
index is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone U.S. Government Income Fund reflects the deduction
of fees for these value-added services. Past performance is not predictive of
future results.
23
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE MUNICIPAL BOND FUNDS
Despite a good deal of sound and fury about tax reform and the possibility of a
flat tax, the discussion did not move forward during the six months ended
December 31, 1995. Variations on the theme were bandied about in the press.
Presidential candidates developed computer models, and pundits predicted that
passage would ensure outcomes ranging from economic nirvana to total meltdown.
But no concrete proposals materialized in the House or Senate.
As a result, the market environment was somewhat unsettled throughout the
period, but as it became clearer that debate may continue for years before any
action is taken, investors began to take the situation in stride. Many in the
marketplace now believe that--despite all the talk in the media of radical,
sweeping changes in the tax codes--special interests may ultimately squash the
flat tax. We believe that any changes made will be evolutionary rather than
revolutionary. As a result, during the period, demand for municipals was strong
and performance was good.
THE MUNICIPAL BOND FUND
It was a positive and relatively quiet six months for the Municipal Bond Fund.
During the period, we added several Puerto Rico issues to this portfolio. AAA
in quality and insured, these bonds are tax-exempt in all states. Total return
for the six months ended December 31, 1995, was 5.19% (Investor A Shares).+
In addition, as California municipal bond funds pumped up demand for high-
quality California securities, we took advantage of the opportunity to sell
some of our holdings in this state at a premium. Funds were reinvested in
securities from muni-cipalities in Florida and Oklahoma. Performance during the
period was strong.
Looking ahead, we believe the coming year will be a good one in the municipal
markets. While many are concerned about the government's apparent inability to
balance the budget, we believe that the markets will be satisfied to simply see
some meaningful progress made. Regardless of recent shutdowns and apparent
stalemates, it is important to remember that politicians are now actually
focusing on the deficit--and while a solution is not necessarily at hand, some
progress seems sure to be made.
As of December 31, 1995, the average maturity of the Fund was 8.65 years; over
two-thirds of the portfolio's holdings were AAA-rated.
- -------
+ Total return with the maximum 4.00% sales charge was 1.01% for the period.
24
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -------------------------------------------------------
Since
Inception
1 Year 5 Years (10/31/88)
- -------------------------------------------------------
<S> <C> <C> <C>
Investor A * 8.78% 6.11% 6.22%
- -------------------------------------------------------
Institutional 13.60% 7.08% 6.90%
- -------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
MUNICIPAL BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional Lehman Brothers
Municipal Index
<S> <C> <C> <C>
10/88 9,597 10,000 10,000
6/89 10,127 10,552 10,672
6/90 10,590 11,035 11,398
6/91 11,385 11,863 12,424
6/92 12,422 12,944 13,888
6/93 13,597 14,171 15,548
6/94 13,694 14,286 15,579
6/95 14,656 15,322 16,945
12/95 15,417 16,139 17,972
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- -----------------------------------------
Since
Inception
1 Year (2/4/94)
- -----------------------------------------
<S> <C> <C>
Investor B ** 8.39% 1.82%
- -----------------------------------------
</TABLE>
MUNICIPAL BOND FUND
Value Bond Fund
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** Lehman Brothers
Municipal Index
<S> <C> <C>
2/94 10,000 10,000
6/94 9,277 9,450
6/95 9,870 10,279
12/95 10,350 11,011
</TABLE>
The Fund's performance is compared to the Lehman Brothers Municipal Index,
which represents the performance of the broad municipal bond market. The index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Municipal Bond Fund reflects the deduction of fees
for these value-added services. Past performance is not predictive of future
results.
25
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE MICHIGAN MUNICIPAL BOND FUND
Supply loosened in the Michigan market as school districts, forced to issue
bonds before year-end or forego the opportunity and lose deductions, increased
issuance. As a result, we had the opportunity to work directly with
underwriters to develop payable structures and call features most suited to the
Fund's needs. In addition, during the summer and late fall, we added Puerto
Rico securities to our holdings. Currently, approximately 7% of the Fund's
assets are invested in Puerto Rico bonds that are rated AAA in quality and
insured. These bonds are tax-exempt in all states including Michigan.
Performance over the six months ended December 31, 1995, was solid--and, with
few lingering short-supply clouds on the horizon, we expect the next six months
to produce much the same. For the six-month period, the Fund's total return was
5.58% (Investor A Shares).+ As of December 31, 1995, the average maturity of
the Fund's holdings was 9.64 years; the average credit quality was AA.
- -------
+Total return with the maximum sales charge of 4.00% was 1.34% for the period.
26
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
- ------------------------------------------------------------
<S> <C> <C> <C>
Investor A * 8.71% 6.33% 6.34%
- ------------------------------------------------------------
Institutional 13.66% 7.32% 7.24%
- ------------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
MICHIGAN MUNICIPAL BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Shearson 3-15 Year
Date Investor A* Institutional Municipal
<S> <C> <C> <C>
7/90 9,597 10,000 10,000
6/91 10,247 10,677 10,884
6/92 11,244 11,716 12,065
6/93 12,301 12,820 13,338
6/94 12,414 12,951 13,487
6/95 13,282 13,900 14,608
12,95 14,024 14,695 15,502
</TABLE>
Average Annual Total Return
As of December 31, 1995
<TABLE>
<CAPTION>
- ------------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------------------
<S> <C> <C>
Investor B ** 8.65% 1.91%
- ------------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
MICHIGAN MUNICIPAL BOND FUND
Value of $10,000 Investment
[GRAPH APPEARS HERE]
The Fund's performance is compared to the Shearson 3-15 Year Municipal Index,
which represents the performance of municipal bonds across the country in that
maturity range. The index is unmanaged and does not reflect the deduction of
fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Michigan Municipal Bond Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results.
27
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Mutual Funds December 31, 1995
THE MONEY MARKET FUNDS*
The six months ended December 31, 1995, were difficult ones in the money
markets. While the Federal Reserve moved to cut short-term interest rates
twice--in July and December--it did not move as quickly or dramatically as
investors had anticipated. Everyone was left expecting more--and convinced that
further cuts were just around the corner. Given the circumstances, we
approached the markets cautiously and lengthened our maturities throughout the
year.
. THE PRIME OBLIGATIONS FUND: As of December 31, 1995, the average maturity of
the Fund's holdings was 43 days. Approximately 10% of the Fund's assets were
invested in overnight securities.
. THE U.S. GOVERNMENT OBLIGATIONS FUND: As of December 31, 1995, the average
maturity of the Fund's holdings was 20 days.
. THE TREASURY FUND: The average maturity of the Fund's holdings was 32 days on
December 31, 1995.
. THE TAX-FREE FUND: During the period, maturities ranged from a low of 46 days
to a high of 55 days.
- -------
* An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Funds will be able to maintain a
stable net asset value of $1.00 per share.
- --------------------------------------------------------------------------------
For each of the performance charts, Investor A Share returns reflect the
maximum sales charge and the payment of an annual .25% 12b-1 fee; Investor B
Share returns reflect the imposition of the CDSC and the payment of an annual
.75% distribution fee and a .25% service fee. Investor B Shares are sold at net
asset value subject to a contingent deferred sales charge. Investor C Share
returns reflect an annual .75% distribution fee and a .25% service fee.
Institutional Share returns reflect no sales charge and no 12b-1 fee. Prior to
March 31, 1993, each of The Parkstone Mutual Funds contained a single class of
shares for which no 12b-1 fees were charged. The maximum sales charge was
assessed but was not chargeable to investors currently included within the
Institutional Class of Shares. Had the Funds not created separate classes of
shares, the performance returns would have been different.
- -------------------------------------------------------------------------------
Past performance is not predictive of future performance. The composition of
the Funds' portfolios is subject to change.
The Parkstone Mutual Funds are a family of mutual funds that is distributed by
BISYS Fund Services. FOR MORE COMPLETE INFORMATION ON ANY OF THE PARKSTONE
MUTUAL FUNDS, INCLUDING FEES, EXPENSES AND SALES CHARGES, PLEASE CALL 1-800-
451-8377 FOR A FREE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE
INVESTING OR SENDING MONEY.
28
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
(Amounts in Thousands, except Per Share
Amounts)
<TABLE>
<CAPTION>
PRIME U.S. GOVERNMENT
OBLIGATIONS OBLIGATIONS TREASURY TAX-FREE
FUND FUND FUND FUND
----------- --------------- -------- --------
ASSETS:
<S> <C> <C> <C> <C>
Investments, at value............ $705,211 $210,125 $ 88,687 $184,339
Repurchase agreements............ 112,221 187,285 204,309
-------- -------- -------- --------
817,432 397,410 292,996 184,339
Cash............................. 27 20
Interest receivable.............. 863 346 140 1,355
Prepaid expenses and other
assets.......................... 17 11 21 7
-------- -------- -------- --------
TOTAL ASSETS..................... 818,339 397,787 293,157 185,701
-------- -------- -------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Dividends payable................ 3,431 1,749 1,325 522
Accrued expenses and other
payables:
Investment advisory fees....... 27 13 10 6
Administration fees............ 66 33 14 14
12b-1 fees (Investor A)........ 12 16 10 6
Accounting and transfer agent
fees.......................... 11 8 5 6
Other.......................... 56 19 55 29
-------- -------- -------- --------
TOTAL LIABILITIES................ 3,603 1,838 1,419 583
-------- -------- -------- --------
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Capital.......................... 814,744 395,957 291,738 185,118
Accumulated net realized losses
from investment transactions.... (8) (8)
-------- -------- -------- --------
NET ASSETS....................... $814,736 $395,949 $291,738 $185,118
======== ======== ======== ========
Net Assets
Investor A..................... $137,347 $178,633 $ 94,931 $ 74,985
Institutional.................. 677,389 217,316 196,807 110,133
-------- -------- -------- --------
Total........................ $814,736 $395,949 $291,738 $185,118
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A..................... 137,347 178,633 94,931 74,985
Institutional.................. 677,397 217,324 196,807 110,133
-------- -------- -------- --------
Total........................ 814,744 395,957 291,738 185,118
======== ======== ======== ========
Net asset value--offering and redemption price per share
Investor A..................... $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Institutional.................. $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Investments, at cost............. $817,432 $397,410 $292,996 $184,339
======== ======== ======== ========
</TABLE>
See notes to financial statements.
29
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
(Amounts in Thousands except Per Share Amounts)
<TABLE>
<CAPTION>
HIGH INCOME LARGE SMALL
EQUITY CAPITALIZATION EQUITY CAPITALIZATION
FUND FUND FUND FUND
----------- -------------- -------- --------------
ASSETS:
<S> <C> <C> <C> <C>
Investments, at value...... $421,010 $19,094 $772,329 $511,507
Repurchase agreements...... 8,398 8,000 44,179 32,781
-------- ------- -------- --------
429,408 27,094 816,508 544,288
Cash....................... 4,589
Interest and dividends
receivable................ 1,783 4 459 16
Receivable from brokers for
investments sold.......... 775
Receivable for capital
shares issued............. 40 75 240
Prepaid expenses and other
assets.................... 73 15
-------- ------- -------- --------
TOTAL ASSETS............... 431,304 31,687 817,057 545,319
-------- ------- -------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Payable for forward
currency contracts
purchased.................
Payable to brokers for
investments purchased..... 11,089 3,584
Payable for capital shares
redeemed.................. 32 27 41
Accrued expenses and other
payables:
Investment advisory fees.. 35 1 67 44
Administration fees....... 40 74 47
12b-1 fees (Investor A)... 16 11 20
12b-1 fees (Investor B)... 6 6 10
Accounting and transfer
agent fees............... 32 16 28
Other..................... 28 1 51 26
-------- ------- -------- --------
TOTAL LIABILITIES.......... 189 11,091 252 3,800
-------- ------- -------- --------
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Capital.................... 338,484 20,563 539,742 327,639
Undistributed
(distributions in excess
of) net investment income. 375 2 (2,477) (2,519)
Net unrealized appreciation
from investments.......... 82,922 31 269,255 207,988
Accumulated undistributed
net realized gains from
investment transactions... 9,334 10,285 8,411
-------- ------- -------- --------
NET ASSETS................. $431,115 $20,596 $816,805 $541,519
======== ======= ======== ========
Net Assets
Investor A................ $ 77,135 $ 52,417 $101,591
Investor B................ 9,064 9,557 16,671
Investor C................ 84 416 582
Institutional............. 344,832 $20,596 754,415 422,675
-------- ------- -------- --------
Total................... $431,115 $20,596 $816,805 $541,519
======== ======= ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A................ 4,832 2,903 3,806
Investor B................ 570 537 629
Investor C................ 5 23 22
Institutional............. 21,613 2,056 41,594 15,699
-------- ------- -------- --------
Total................... 27,020 2,056 45,057 20,156
======== ======= ======== ========
Net asset value
Investor A -- redemption
price per share.......... $15.96 $18.06 $26.69
====== ====== ======
Investor B -- offering
price per share*......... $15.94 $17.75 $26.51
====== ====== ======
Investor C -- offering
price per share*......... $16.02 $17.82 $26.65
====== ====== ======
Institutional -- offering
and redemption price per
share.................... $15.95 $10.02 $18.14 $26.93
====== ====== ====== ======
Maximum Sales Charge
(Investor A).............. 4.50% 4.00% 4.50% 4.50%
====== ====== ====== ======
Maximum Offering Price
(100%/(100%--Maximum Sales
Charge) of net asset value
adjusted to nearest cent)
per share (Investor A).... $16.71 $10.44 $18.91 $27.95
====== ====== ====== ======
Investments, at cost....... $346,486 $27,063 $547,253 $336,301
======== ======= ======== ========
</TABLE>
- -------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
30
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
(Amounts in Thousands except Per Share Amounts)
<TABLE>
<CAPTION>
INTERMEDIATE
INTERNATIONAL LIMITED GOVERNMENT
DISCOVERY BALANCED MATURITY BOND OBLIGATIONS
FUND FUND FUND FUND
------------- -------- ------------- ------------
ASSETS:
<S> <C> <C> <C> <C>
Investments, at value...... $326,197 $107,052 $155,017 $271,146
Repurchase agreements...... 6,989 65 514
-------- -------- -------- --------
326,197 114,041 155,082 271,660
Interest and dividends
receivable................ 882 1,044 2,431 4,081
Foreign currency (cost $244) 244
Receivable from brokers for
investments sold.......... 7 27 32
Receivable for capital
shares issued............. 14 31
Prepaid expenses and other
assets.................... 2 2 3 3
-------- -------- -------- --------
TOTAL ASSETS............... 327,346 115,145 157,516 275,776
-------- -------- -------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Payable for forward
currency contracts
purchased................. 4 4
Payable to brokers for
investments purchased..... 72
Payable for capital shares
redeemed.................. 14 3 8 22
Accrued expenses and other
payables:
Investment advisory fees.. 32 7 7 16
Administration fees....... 30 10 11 19
12b-1 fees (Investor A)... 7 6 4 6
12b-1 fees (Investor B)... 4 1 1 1
Accounting and transfer
agent fees............... 30 15 21 25
Other..................... 82 17 11 18
-------- -------- -------- --------
TOTAL LIABILITIES.......... 203 135 63 107
-------- -------- -------- --------
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Capital.................... 305,551 98,663 164,191 282,950
Undistributed
(distributions in excess
of) net investment income. 2 (22) (26)
Net unrealized appreciation
from investments and
translation of assets and
liabilities in foreign
currencies................ 39,375 15,693 1,232 5,235
Accumulated undistributed
net realized gains
(losses) from investment
and foreign currency
transactions.............. (17,783) 652 (7,948) (12,490)
-------- -------- -------- --------
NET ASSETS................. $327,143 $115,010 $157,453 $275,669
======== ======== ======== ========
Net Assets
Investor A................ $ 35,864 $ 14,941 $ 16,737 $ 25,973
Investor B................ 6,538 2,571 1,008 1,443
Investor C................ 230 204 7 38
Institutional............. 284,511 97,194 139,701 248,215
-------- -------- -------- --------
Total................... $327,143 $115,010 $157,453 $275,669
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A................ 2,839 1,191 1,721 2,589
Investor B................ 524 213 105 144
Investor C................ 18 16 1 4
Institutional............. 22,380 7,752 14,364 24,741
-------- -------- -------- --------
Total................... 25,761 9,172 16,191 27,478
======== ======== ======== ========
Net asset value
Investor A -- redemption
price per share.......... $12.63 $12.54 $9.73 $10.03
====== ====== ===== ======
Investor B -- offering
price per share*......... $12.46 $12.54 $9.72 $10.00
====== ====== ===== ======
Investor C -- offering
price per share*......... $12.75 $12.47 $9.54 $9.85
====== ====== ===== =====
Institutional -- offering
and redemption price per
share.................... $12.71 $12.54 $9.73 $10.03
====== ====== ===== ======
Maximum Sales Charge
(Investor A).............. 4.50% 4.50% 3.00% 4.00%
====== ====== ====== ======
Maximum Offering Price
(100%/(100%--Maximum Sales
Charge) of net asset value
adjusted to nearest cent)
per share (Investor A).... $13.23 $13.13 $10.03 $10.45
====== ====== ====== ======
Investments, at cost....... $287,453 $ 98,348 $153,850 $266,426
======== ======== ======== ========
</TABLE>
- -------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
31
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
(Amounts in Thousands except Per Share
Amounts)
<TABLE>
<CAPTION>
U.S. MICHIGAN
GOVERNMENT MUNICIPAL MUNICIPAL
INCOME BOND BOND BOND
FUND FUND FUND FUND
---------- -------- --------- ---------
ASSETS:
<S> <C> <C> <C> <C>
Investments, at value............... $186,862 $484,480 $146,006 $222,417
Repurchase agreements............... 202 76,562
-------- -------- -------- --------
187,064 561,042 146,006 222,417
Cash
Interest receivable................. 2,235 7,785 2,805 3,476
Receivable from brokers for
investments sold................... 466
Receivable for capital shares
issued............................. 13 11 14 22
Prepaid expenses and other assets... 2 1 3
-------- -------- -------- --------
TOTAL ASSETS........................ 189,778 568,840 148,826 225,918
-------- -------- -------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Cash overdraft...................... 43 24
Payable to brokers for investments
purchased.......................... 77
Payable for capital shares redeemed. 56 9 3
Accrued expenses and other payables:
Investment advisory fees........... 7 33 7 10
Administration fees................ 13 39 7 10
12b-1 fees (Investor A)............ 11 4 2 8
12b-1 fees (Investor B)............ 9 1 2
Accounting and transfer agent
fees.............................. 22 22 10 15
Other.............................. 10 32 8 12
-------- -------- -------- --------
TOTAL LIABILITIES................... 205 140 77 84
-------- -------- -------- --------
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Capital............................. 194,345 568,101 142,118 212,375
Undistributed (distributions in
excess of) net investment income... (36) 555 (17) 2
Net unrealized appreciation from
investments........................ 2,369 13,564 6,858 13,204
Accumulated undistributed net
realized gains (losses) from
investment transactions............ (7,105) (13,520) (210) 253
-------- -------- -------- --------
NET ASSETS.......................... $189,573 $568,700 $148,749 $225,834
======== ======== ======== ========
Net Assets
Investor A......................... $ 53,047 $ 18,720 $ 10,589 $ 38,600
Investor B......................... 14,130 2,303 482 2,951
Investor C......................... 30 91
Institutional...................... 122,366 547,586 137,678 184,283
-------- -------- -------- --------
Total............................ $189,573 $568,700 $148,749 $225,834
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A......................... 5,556 1,885 987 3,487
Investor B......................... 1,484 231 45 266
Investor C......................... 3 9
Institutional...................... 12,811 54,870 12,840 16,636
-------- -------- -------- --------
Total............................ 19,854 56,995 13,872 20,389
======== ======== ======== ========
Net asset value
Investor A -- redemption price per
share............................. $9.55 $ 9.93 $10.72 $11.07
===== ====== ====== ======
Investor B -- offering price per
share*............................ $9.52 $ 9.94 $10.69 $11.07
===== ====== ====== ======
Investor C -- offering price per
share*............................ $9.49 $ 9.89
===== ======
Institutional -- offering and
redemption price per share........ $9.55 $ 9.98 $10.72 $11.08
===== ====== ====== ======
Maximum Sales Charge (Investor A)... 4.00% 4.00% 4.00% 4.00%
===== ====== ====== ======
Maximum Offering Price (100%/(100%--
Maximum Sales Charge) of net asset
value adjusted to nearest cent) per
share (Investor A)................. $9.95 $10.34 $11.17 $11.53
===== ====== ====== ======
Investments, at cost................ $184,696 $547,479 $139,148 $209,212
======== ======== ======== ========
</TABLE>
- -------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
32
<PAGE>
- -------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT TAX-
OBLIGATIONS OBLIGATIONS TREASURY FREE
FUND FUND FUND FUND
----------- --------------- -------- ------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income................... $22,497 $12,052 $8,723 $3,052
------- ------- ------ ------
TOTAL INCOME...................... 22,497 12,052 8,723 3,052
------- ------- ------ ------
EXPENSES:
Investment advisory fees.......... 1,533 827 597 320
Administration fees............... 767 413 298 160
12b-1 fees (Investor A)........... 158 233 132 67
Custodian and accounting fees..... 113 60 49 27
Legal and audit fees.............. 23 10 10 2
Trustees' fees and expenses....... 5 2 2 1
Transfer agent fees............... 29 19 15 15
Registration and filing fees...... 19 10 27 8
Printing costs.................... 24 12 8 5
Interest expense.................. 78
Other............................. 6 3 2 1
Expenses voluntarily reduced...... (178) (185) (230) (57)
------- ------- ------ ------
TOTAL EXPENSES.................... 2,499 1,404 988 549
------- ------- ------ ------
Net Investment Income............. 19,998 10,648 7,735 2,503
------- ------- ------ ------
REALIZED GAINS(LOSSES) FROM
INVESTMENTS:
Net realized gains(losses) from
investment transactions.......... (5) 10 3
------- ------- ------ ------
Net realized gains(losses) from
investments...................... (5) 10 3
------- ------- ------ ------
Change in net assets resulting
from operations.................. $19,993 $10,648 $7,745 $2,506
======= ======= ====== ======
</TABLE>
See notes to financial statements.
33
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1995
(Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
HIGH INCOME LARGE SMALL
EQUITY CAPITALIZATION EQUITY CAPITALIZATION
FUND FUND (A) FUND FUND
----------- -------------- ------- --------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income............. $ 1,689 $ 4 $ 897 $ 735
Dividend income............. 6,087 1,955 245
Foreign tax withholding..... (37) (4)
------- --- ------- -------
TOTAL INCOME................ 7,739 4 2,848 980
------- --- ------- -------
<CAPTION>
EXPENSES:
<S> <C> <C> <C> <C>
Investment advisory fees.... 2,152 2 4,062 2,562
Administration fees......... 430 812 512
12b-1 fees (Investor A)..... 93 63 107
12b-1 fees (Investor B)..... 40 40 70
12b-1 fees (Investor C)..... 2 2
Custodian and accounting
fees....................... 84 154 97
Legal and audit fees........ 13 27 16
Trustees' fees and expenses. 3 6 3
Transfer agent fees......... 84 99 95
Registration and filing
fees....................... 15 25 16
Printing costs.............. 23 46 28
Other....................... 13 16 21
Expenses voluntarily
reduced.................... (18) (27) (30)
------- --- ------- -------
TOTAL EXPENSES.............. 2,932 2 5,325 3,499
------- --- ------- -------
Net Investment Income
(Loss)..................... 4,807 2 (2,477) (2,519)
------- --- ------- -------
<CAPTION>
REALIZED/UNREALIZED GAINS
FROM INVESTMENTS:
<S> <C> <C> <C> <C>
Net realized gains from
investment transactions.... 22,874 23,688 33,685
Change in unrealized
appreciation from
investments................ 30,023 31 74,745 46,895
------- --- ------- -------
Net realized/unrealized
gains from investments..... 52,897 31 98,433 80,580
------- --- ------- -------
Change in net assets
resulting from operations.. $57,704 $33 $95,956 $78,061
======= === ======= =======
</TABLE>
- -------
(a) For the period from December 28, 1995 (commencement of operations) through
December 31, 1995.
See notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1995
(Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
LIMITED INTERMEDIATE
INTERNATIONAL MATURITY GOVERNMENT
DISCOVERY BALANCED BOND OBLIGATIONS
FUND FUND FUND FUND
------------- -------- -------- ------------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income................... $ 667 $1,918 $5,756 $ 9,213
Dividend income................... 2,001 148
Foreign tax withholding........... (106) (2)
------- ------ ------ -------
TOTAL INCOME...................... 2,562 2,064 5,756 9,213
------- ------ ------ -------
<CAPTION>
EXPENSES:
<S> <C> <C> <C> <C>
Investment advisory fees.......... 1,898 553 456 1,029
Administration fees............... 320 111 124 278
12b-1 fees (Investor A)........... 44 17 23 33
12b-1 fees (Investor B)........... 31 10 4 6
12b-1 fees (Investor C)........... 1 1
Custodian and accounting fees..... 181 38 40 57
Legal and audit fees.............. 9 3 5 9
Trustees' fees and expenses....... 2 1 1 2
Transfer agent fees............... 76 51 50 58
Registration and filing fees...... 16 13 13 13
Printing costs.................... 18 4 9 15
Interest expense.................. 7
Other............................. 10 3 2 4
Expenses voluntarily reduced...... (36) (143) (22) (130)
------- ------ ------ -------
TOTAL EXPENSES.................... 2,570 662 705 1,381
------- ------ ------ -------
Net Investment Income (Loss)...... (8) 1,402 5,051 7,832
------- ------ ------ -------
<CAPTION>
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS
AND FOREIGN CURRENCIES:
<S> <C> <C> <C> <C>
Net realized gains (losses) from
investment transactions and
foreign currency transactions.... 5,102 5,676 (362) 4,157
Net change in unrealized
appreciation from investments and
translation of assets and
liabilities in foreign
securities....................... 5,500 2,595 1,644 216
------- ------ ------ -------
Net realized/unrealized gains from
investments...................... 10,602 8,271 1,282 4,373
------- ------ ------ -------
Change in net assets resulting
from operations.................. $10,594 $9,673 $6,333 $12,205
======= ====== ====== =======
</TABLE>
See notes to financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1995
(Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. MICHIGAN
GOVERNMENT MUNICIPAL MUNICIPAL
INCOME BOND BOND BOND
FUND FUND FUND FUND
---------- ------- --------- ---------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income........................ $7,887 $18,975 $3,606 $ 5,978
------ ------- ------ -------
TOTAL INCOME........................... 7,887 18,975 3,606 5,978
------ ------- ------ -------
<CAPTION>
EXPENSES:
<S> <C> <C> <C> <C>
Investment advisory fees............... 665 2,036 549 831
Administration fees.................... 180 550 149 225
12b-1 fees (Investor A)................ 65 23 14 48
12b-1 fees (Investor B)................ 57 9 3 13
Custodian and accounting fees.......... 48 111 39 54
Legal and audit fees................... 5 18 4 6
Trustees' fees and expenses............ 1 3 1 1
Transfer agent fees.................... 72 56 34 47
Registration and filing fees........... 14 16 24 6
Printing costs......................... 10 31 9 10
Interest expense....................... 27
Other.................................. 16 6 2 4
Expenses voluntarily reduced........... (322) (257) (230) (331)
------ ------- ------ -------
TOTAL EXPENSES......................... 811 2,629 598 914
------ ------- ------ -------
Net Investment Income.................. 7,076 16,346 3,008 5,064
------ ------- ------ -------
<CAPTION>
REALIZED/UNREALIZED GAINS FROM
INVESTMENTS:
<S> <C> <C> <C> <C>
Net realized gains from investment
transactions.......................... 520 16,501 753 699
Net change in unrealized appreciation
(depreciation) from investments....... 2,211 (312) 3,924 6,546
------ ------- ------ -------
Net realized/unrealized gains from
investments........................... 2,731 16,189 4,677 7,245
------ ------- ------ -------
Change in net assets resulting from
operations............................ $9,807 $32,535 $7,685 $12,309
====== ======= ====== =======
</TABLE>
See notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME OBLIGATIONS U.S. GOVERNMENT
FUND OBLIGATIONS FUND TREASURY FUND TAX-FREE FUND
--------------------- ---------------------- ------------------------ ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995 1995 1995 1995 1995
------------ -------- ------------ --------- ------------ ----------- ------------ ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income.. $ 19,998 $ 34,513 $ 10,648 $ 16,485 $ 7,735 $ 10,249 $ 2,503 $ 3,952
Net realized gains
(losses) from
investment
transactions.......... (5) 20 12 10 6 3 10
--------- -------- --------- --------- --------- ----------- --------- ---------
Change in net assets
resulting from
operations............. 19,993 34,533 10,648 16,497 7,745 10,255 2,506 3,962
--------- -------- --------- --------- --------- ----------- --------- ---------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (3,241) (4,827) (4,754) (7,441) (2,701) (4,272) (819) (1,390)
From net realized gains
from investment
transactions.......... (1) (9) (4) (15)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (16,757) (29,686) (5,894) (9,043) (5,034) (5,977) (1,684) (2,561)
From net realized gains
from investment
transactions.......... (4) (15) (9) (24)
--------- -------- --------- --------- --------- ----------- --------- ---------
Change in net assets
from shareholder
distributions.......... (20,003) (34,513) (10,648) (16,484) (7,759) (10,249) (2,516) (3,990)
--------- -------- --------- --------- --------- ----------- --------- ---------
<CAPTION>
CAPITAL TRANSACTIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Proceeds from shares
issued................ 601,147 677,876 548,365 880,061 797,774 1,281,668 215,437 326,347
Dividends reinvested... 3,132 4,182 791 1,106 177 55 417 659
Cost of shares
redeemed.............. (538,478) 600,435 (549,951) (849,530) (803,822) (1,116,696) (174,316) (316,109)
--------- -------- --------- --------- --------- ----------- --------- ---------
Change in net assets
from share
transactions........... 65,801 81,623 (795) 31,637 (5,871) 165,047 41,538 10,987
--------- -------- --------- --------- --------- ----------- --------- ---------
Change in net assets.... 65,791 81,643 (795) 31,650 (5,885) 165,053 41,528 10,869
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period.... 748,945 667,302 396,744 365,094 297,623 132,570 143,590 132,721
--------- -------- --------- --------- --------- ----------- --------- ---------
End of period.......... $ 814,736 $748,945 $ 395,949 $ 396,744 $ 291,738 $ 297,623 $ 185,118 $ 143,590
========= ======== ========= ========= ========= =========== ========= =========
</TABLE>
See notes to financial statements.
37
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
LARGE
HIGH INCOME EQUITY CAPITALIZATION SMALL CAPITALIZATION
FUND FUND EQUITY FUND FUND
---------------------- -------------- ---------------------- ----------------------
SIX MONTHS YEAR DECEMBER 28, SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED 1995 TO ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995(A) 1995 1995 1995 1995
------------ --------- -------------- ------------ --------- ------------ ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 4,807 $ 11,977 $ 2 $ (2,477) $ (4,198) $ (2,519) $ (4,148)
Net realized gains from
investment
transactions.......... 22,874 255 23,688 18,813 33,685 40,503
Net change in
unrealized
appreciation from
investments........... 30,023 29,556 31 74,745 128,902 46,895 103,203
--------- --------- ------- --------- --------- --------- ---------
Change in net assets
resulting from
operations............. 57,704 41,788 33 95,956 143,517 78,061 139,558
--------- --------- ------- --------- --------- --------- ---------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income................ (741) (1,930)
In excess of net
investment income..... (69)
From net realized gains
from investment
transactions.......... (2,095) (1,837) (1,198) (11,580) (4,943)
In excess of net
realized gains from
investment
transactions.......... (2,479)
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net investment
income................ (50) (103)
In excess of net
investment income..... (7)
From net realized gains
from investment
transactions.......... (244) (333) (90) (1,973) (394)
In excess of net
realized gains from
investment
transactions.......... (184)
DISTRIBUTIONS TO INVESTOR C
SHAREHOLDERS:
From net realized gains
from investment
transactions.......... (2) (14) (67)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (3,958) (9,943)
In excess of net
investment income..... (312)
From net realized gains
from investment
transactions.......... (9,595) (26,657) (17,525) (52,159) (29,924)
In excess of net
realized gains from
investment
transactions.......... (35,212)
--------- --------- ------- --------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... (16,685) (12,364) (28,841) (56,688) (65,779) (35,261)
--------- --------- ------- --------- --------- --------- ---------
<CAPTION>
CAPITAL TRANSACTIONS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Proceeds from shares
issued................ 20,163 66,329 20,563 97,392 137,701 241,082 164,265
Dividends reinvested... 5,994 4,353 20,862 41,955 47,100 24,703
Cost of shares
redeemed.............. (60,444) (111,205) (101,913) (104,120) (195,878) (172,678)
--------- --------- ------- --------- --------- --------- ---------
Change in net assets
from share
transactions........... (34,287) (40,523) 20,563 16,341 75,536 92,304 16,290
--------- --------- ------- --------- --------- --------- ---------
Change in net assets.... 6,732 (11,099) 20,596 83,456 162,365 104,586 120,587
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period.... 424,383 435,482 733,349 570,984 436,933 316,346
--------- --------- ------- --------- --------- --------- ---------
End of period.......... $ 431,115 $ 424,383 $20,596 $ 816,805 $ 733,349 $ 541,519 $ 436,933
========= ========= ======= ========= ========= ========= =========
</TABLE>
- -------
(a) Period from commencement of operations.
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
(Amounts in Thousands)
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY LIMITED MATURITY
FUND BALANCED FUND BOND FUND
-------------------------- --------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995 1995 1995
------------- ----------- ------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ (8) $ 1,251 $ 1,402 $ 2,511 $ 5,051 $ 10,317
Net realized gains
(losses) from
investment and foreign
currency transactions. 5,102 (10,452) 5,676 200 (362) (2,451)
Net change in
unrealized
appreciation from
investments and
translation of assets
and liabilities in
foreign currencies.... 5,500 2,814 2,595 13,788 1,644 4,315
----------- ----------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 10,594 (6,387) 9,673 16,499 6,333 12,181
----------- ----------- -------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (30) (182) (311) (596) (1,254)
In excess of net
investment income..... (2)
From net realized gains
from investment and
foreign currency
transactions.......... (668) (10) (63)
In excess of net
realized gains from
investment and foreign
current transactions.. (1,732) (164)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (18) (16) (28) (40)
From net realized gains
from investment and
foreign currency
transactions.......... (119) (5) (4)
In excess of net
realized gains from
investment and foreign
currency transactions. (193) (8)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ (1)
From net realized gains
from investment and
foreign currency
transactions.......... (9)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (771) (1,357) (2,184) (4,902) (8,886)
From net realized gains
from investment and
foreign currency
transactions.......... (4,422) (185) (525)
In excess of net
realized gains from
investment and foreign
currency transactions. (12,641) (950)
----------- ----------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (801) (14,566) (6,776) (3,835) (6,118) (10,180)
----------- ----------- -------- -------- -------- --------
<CAPTION>
CAPITAL TRANSACTIONS:
<S> <C> <C> <C> <C> <C> <C>
Proceeds from shares
issued................ 91,337 96,444 19,249 29,144 15,621 41,873
Dividends reinvested... 444 8,884 5,563 3,015 2,763 4,729
Cost of shares
redeemed.............. (78,969) (80,612) (16,247) (25,347) (22,749) (69,214)
----------- ----------- -------- -------- -------- --------
Change in net assets
from share
transactions........... 12,812 24,716 8,565 6,812 (4,365) (22,612)
----------- ----------- -------- -------- -------- --------
Change in net assets.... 22,605 3,763 11,462 19,476 (4,150) (20,611)
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C> <C>
Beginning of period.... 304,538 300,775 103,548 84,072 161,603 182,214
----------- ----------- -------- -------- -------- --------
End of period.......... $ 327,143 $ 304,538 $115,010 $103,548 $157,453 $161,603
=========== =========== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
39
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE GOVERNMENT U.S. GOVERNMENT
OBLIGATIONS FUND INCOME FUND BOND FUND
-------------------------- --------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995 1995 1995
------------- ----------- ------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income.. $ 7,832 $ 15,676 $ 7,076 $ 12,830 $ 16,346 $ 32,344
Net realized gains
(losses) from
investment
transactions.......... 4,157 (3,520) 520 (6,429) 16,501 (4,835)
Net change in
unrealized
appreciation
(depreciation) from
investments........... 216 11,732 2,211 6,500 (312) 28,130
----------- ----------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 12,205 23,888 9,807 12,901 32,535 55,639
----------- ----------- -------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (723) (1,599) (2,036) (3,566) (530) (1,111)
In excess of net
investment income..... (11) (13)
From net realized gains
from investment
transactions.......... (134) (26)
Tax return of capital.. (12) (409)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (34) (36) (401) (307) (44) (47)
From net realized gains
from investment
transactions.......... (3)
Tax return of capital.. (36)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ (1) (1) (2)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (7,100) (14,041) (4,674) (7,592) (16,153) (31,186)
In excess of net
investment income..... (11) (187)
From net realized gains
from investment
transactions.......... (1,273) (759)
Tax return of capital.. (101) (870)
----------- ----------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (9,265) (15,811) (7,112) (12,780) (17,517) (32,544)
----------- ----------- -------- -------- -------- --------
<CAPTION>
CAPITAL TRANSACTIONS:
<S> <C> <C> <C> <C> <C> <C>
Proceeds from shares
issued................ 28,366 42,567 30,467 45,990 61,068 78,680
Dividends reinvested... 2,713 4,590 1,935 3,618 12,430 22,255
Cost of shares
redeemed.............. (36,026) (95,427) (15,153) (38,420) (47,935) (84,690)
----------- ----------- -------- -------- -------- --------
Change in net assets
from share
transactions........... (4,947) (48,270) 17,249 11,188 25,563 16,245
----------- ----------- -------- -------- -------- --------
Change in net assets.... (2,007) (40,193) 19,944 11,309 40,581 39,340
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C> <C>
Beginning of period.... 277,676 317,869 169,629 158,320 528,119 488,779
----------- ----------- -------- -------- -------- --------
End of period.......... $ 275,669 $ 277,676 $189,573 $169,629 $568,700 $528,119
=========== =========== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN MUNICIPAL
MUNICIPAL FUND BOND FUND
--------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1995 1995 1995 1995
------------ -------- ------------ --------
(UNAUDITED) (UNAUDITED)
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C>
Net investment income.. $ 3,008 $ 6,302 $ 5,064 $ 10,282
Net realized gains
(losses) from
investment
transactions.......... 753 (907) 699 360
Net change in
unrealized
appreciation from
investments........... 3,924 4,443 6,546 3,956
-------- -------- -------- --------
Change in net assets
resulting from
operations.............. 7,685 9,838 12,309 14,598
-------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income................ (212) (495) (837) (1,798)
In excess of net
investment income..... (11) (44)
From net realized gains
from investment
transactions.......... (211) (125)
Tax return of capital.. (4)
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net investment
income................ (8) (12) (48) (68)
In excess of net
investment income..... (2)
From net realized gains
from investment
transactions.......... (9)
In excess of net
realized gains from
investment
transactions.......... (6)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (2,805) (5,795) (4,198) (8,416)
In excess of net
investment income..... (98) (188)
From net realized gains
from investment
transactions.......... (4) (591)
In excess of net
realized gains from
investment
transactions.......... (2,311)
Tax return of capital.. (46)
-------- -------- -------- --------
Change in net assets from
shareholder
distributions........... (3,029) (8,989) (5,808) (10,516)
-------- -------- -------- --------
<CAPTION>
CAPITAL TRANSACTIONS:
<S> <C> <C> <C> <C>
Proceeds from shares
issued................ 12,230 24,195 19,347 31,191
Dividends reinvested... 345 1,186 1,197 2,615
Cost of shares
redeemed.............. (15,091) (40,790) (17,423) (46,233)
-------- -------- -------- --------
Change in net assets from
share transactions...... (2,516) (15,409) 3,121 (12,427)
-------- -------- -------- --------
Change in net assets..... 2,140 (14,560) 9,622 (8,345)
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Beginning of period.... 146,609 161,169 216,212 224,557
-------- -------- -------- --------
End of period.......... $148,749 $146,609 $225,834 $216,212
======== ======== ======== ========
</TABLE>
See notes to financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
BANKERS ACCEPTANCES (0.6%):
5,000 Wachovia Bank,........................................... $ 4,998
--------
Total Bankers Acceptances 4,998
--------
CERTIFICATES OF DEPOSIT (5.3%):
Banking ( 2.1%)
7,000 Bank of Nova Scotia, 5.76%, 1/30/96...................... 7,000
3,000 Bank of Nova Scotia, Portland,
5.70%, 2/14/96.......................................... 3,000
7,000 Huntington National Bank,
5.85%, 11/13/96......................................... 7,000
--------
17,000
--------
Foreign Banking (2.6%):
7,000 Bayerische Hypoteken Und Wechsel Bank, 5.68%, 3/22/96.... 6,998
7,000 Rabobank, 5.64%, 1/17/96................................. 7,000
7,000 West Deutsche Landesbank,
5.62%, 1/11/96.......................................... 7,000
--------
20,998
--------
Financial Services (0.6%):
5,000 Rabobank NY, 5.81%, 4/2/96............................... 5,001
--------
Total Certificates of Deposit 42,999
--------
COMMERCIAL PAPER (72.7%):
Agriculture (1.2%):
5,000 Cargill Corp., 5.66%, 2/14/96............................ 4,965
5,000 Cargill Corp., 5.47%, 1/5/96............................. 4,997
--------
9,962
--------
Aircraft (0.9%):
7,000 International Lease Financial,
5.72%, 1/8/96........................................... 6,992
--------
Automotive (0.6%):
5,000 Echlin, Inc., 5.75%, 1/19/96............................. 4,986
--------
Banking (6.3%):
7,000 Bank America Corp., 5.72%, 1/31/96....................... 6,967
5,000 Chemical Bank, 5.60%, 1/4/96............................. 4,997
5,000 Chemical Bank, NY, 5.59%, 4/2/96......................... 4,928
7,000 Commerzbank International,
5.70%, 1/10/96.......................................... 6,990
7,000 Internationale Nederlanden,
5.67%, 2/13/96.......................................... 6,953
7,000 Kingdom of Sweden, 5.36%, 4/2/96......................... 6,902
7,000 Pemex Capital Inc., 5.70%, 2/13/96....................... 6,952
7,000 Svenska Handelsbanken, 5.68%, 2/9/96..................... 6,957
--------
51,646
--------
Banking & Financial Services (0.9%):
7,000 Den Dansk Corp., Inc., 5.60%, 3/5/96..................... 6,930
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Foreign Banking & Financial Services (8.0%):
7,000 Australia & New Zealand Banking Group, 5.70%, 2/5/96..... $ 6,961
4,700 Banque Nationale De Paris (Canada), 5.65%, 1/16/96....... 4,689
3,200 Banque Nationale De Paris (Canada), 5.65%, 1/19/96....... 3,191
4,000 Barclays Bank, Canada, 5.59%, 3/1/96..................... 3,963
7,000 Canadian Wheat Board, 5.59%, 2/6/96...................... 6,961
7,000 Den Danske Corp., 5.64%, 4/10/96......................... 6,890
7,000 International Nederlanden Bank,
5.60%, 2/28/96.......................................... 6,937
7,000 Kredietbank N.A. Finance Corp.,
5.70%, 1/29/96.......................................... 6,969
7,000 Kredietbank N.V., 5.75%, 1/5/96.......................... 6,996
7,000 Svenska Handelsbanken, 5.61%, 2/2/96..................... 6,965
5,000 Toronto Dominion Holdings,
5.59%, 2/1/96........................................... 4,976
--------
65,498
--------
Basic Industry (0.6%):
5,000 Hanson Finance, PLC, 5.65%, 2/29/96...................... 4,954
--------
Business Services (0.9%):
7,000 Xerox Corp., 5.57%, 3/28/96.............................. 6,906
--------
Chemicals (1.7%):
5,000 Air Products & Chemicals, 5.59%, 4/4/96.................. 4,928
5,000 Hercules, Inc., 5.68%, 2/16/96........................... 4,964
4,000 Takeda Finance U.S.A., Inc.,
5.65%, 3/20/96.......................................... 3,950
--------
13,842
--------
Computer Hardware (0.9%):
7,000 IBM Credit Corp., 5.76%, 1/16/96......................... 6,983
--------
Diversified (2.2%):
7,000 Mitsubishi International Corp.,
5.63%, 3/8/96........................................... 6,927
4,090 Pacific Dunlop Holdings, Inc.,
5.40%, 5/31/96.......................................... 3,997
7,000 Pearson, Inc., 5.75%, 1/16/96............................ 6,983
--------
17,907
--------
Education (2.1%):
7,000 Columbia University, 5.72%, 1/31/96...................... 6,967
3,000 Columbia University, 5.60%, 3/11/96...................... 2,967
7,000 Yale University, 5.65%, 2/29/96.......................... 6,935
--------
16,869
--------
</TABLE>
Continued
42
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Electric Utility (5.0%):
4,465 Allegheny Power Systems Inc.,
5.63%, 2/28/96.......................................... $ 4,425
7,000 Electricite De France, 5.61%, 4/4/96..................... 6,897
3,740 Georgia Power Co., 5.61%, 3/6/96......................... 3,702
5,000 Pacificorp, 5.70%, 2/9/96................................ 4,969
7,000 Southern Co., 5.70%, 1/22/96............................. 6,977
7,000 Southern Co., 5.68%, 2/9/96.............................. 6,957
7,000 Teco Finance, Inc., 5.64%, 2/22/96....................... 6,942
--------
40,869
--------
Electrical & Electronic (1.7%):
7,000 Avnet, 5.68%, 3/1/96..................................... 6,934
7,000 General Electric Capital Corp.,
5.58%, 4/8/96........................................... 6,894
--------
13,828
--------
Financial & Insurance (0.9%):
7,000 Avco Financial Services Inc.,
5.67%, 2/15/96.......................................... 6,950
--------
Financial Services (15.9%):
5,000 American Express, 5.66%, 2/23/96......................... 4,958
7,000 American Express, 5.59%, 4/23/96......................... 6,877
7,000 American General Corp., 5.68%, 1/16/96................... 6,983
7,000 Associates Corp., 5.68%, 2/5/96.......................... 6,961
7,000 Bear Stearns, 5.70%, 4/17/96............................. 6,883
5,000 BTR Dunlop Finance, Inc.,
5.65%, 2/16/96.......................................... 4,964
7,000 CS First Boston, 5.64%, 1/9/96........................... 6,991
7,000 Dean Witter, Discover & Co.,
5.68%, 2/15/96.......................................... 6,951
7,000 Dean Witter, Discover & Co.,
5.70%, 1/30/96.......................................... 6,968
7,000 Goldman Sachs, 5.60%, 3/14/96............................ 6,921
7,000 Goldman Sachs, 5.60%, 4/18/96............................ 6,882
5,000 Hanson Financial, 5.70%, 1/26/96......................... 4,980
6,000 Merrill Lynch, 5.62%, 1/29/96............................ 5,974
7,000 Merrill Lynch, 5.60%, 2/2/96............................. 6,965
7,000 Merrill Lynch, 5.67%, 3/29/96............................ 6,903
7,000 New Center Asset Trust, 5.80%, 1/24/96................... 6,974
5,000 Paccar, 5.64%, 2/26/96................................... 4,956
7,000 Pitney Bowes Credit Corp.,
5.67%, 1/25/96.......................................... 6,974
7,000 Societe Generale N.A., 5.61%, 3/18/96.................... 6,916
7,000 Transamerica Financial, 5.66%, 2/13/96................... 6,953
--------
129,934
--------
Gas Utility (0.8%):
2,000 Michigan Consolidated Gas Corp.,
5.60%, 3/27/96.......................................... 1,973
5,000 Michigan Consolidated Gas,
5.63%, 2/20/96.......................................... 4,961
--------
6,934
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Governments (Foreign) (6.2%):
7,000 KFW International Finance, Inc.,
5.68%, 1/17/96.......................................... $ 6,982
7,000 New South Wales Treasury Corp.,
5.62%, 2/28/96.......................................... 6,937
6,000 Province of British Columbia,
5.65%, 2/5/96........................................... 5,967
5,000 Province of British Columbia,
5.62%, 4/1/96........................................... 4,929
7,000 Province of British Columbia, 5.57%, 4/12/96............. 6,890
7,000 Province of Quebec, 5.60%, 2/26/96....................... 6,939
7,000 Ontario Hydro, 5.60%, 4/9/96............................. 6,892
5,000 Toronto Dominion, 5.68%, 1/8/96.......................... 4,994
--------
50,530
--------
Import/Export (0.4%):
3,240 Eksportfinans A/S, 5.65%, 3/28/96........................ 3,196
--------
Industrial Goods & Services (0.3%):
2,600 Stanley Works, 5.67%, 2/16/96............................ 2,581
--------
Insurance (2.3%):
7,000 Allianz of America Finance Corp.,
5.50%, 3/25/96.......................................... 6,910
5,000 Great West Life & Annuity,
5.71%, 1/19/96.......................................... 4,986
7,150 Great Western Life & Annuity,
5.63%, 1/22/96.......................................... 7,127
--------
19,023
--------
Machinery & Equipment (0.9%):
7,000 Caterpillar Financial Services,
5.65%, 2/23/96.......................................... 6,942
--------
Manufacturing--Consumer Goods (2.5%):
7,000 John Deere Credit, 5.56%, 1/29/96........................ 6,970
7,000 Wool International, 5.60%, 3/29/96....................... 6,904
7,000 Wool International, 5.60%, 4/12/96....................... 6,889
--------
20,763
--------
Miscellaneous (0.9%):
7,000 Alamo Funding, 5.77%, 2/2/96............................. 6,964
--------
Oil & Gas Exploration Products & Services (1.7%):
7,000 Explorer Pipeline Co., 5.68%, 2/8/96..................... 6,958
7,000 Statoil, 5.68%, 2/22/96.................................. 6,943
--------
13,901
--------
Pharmaceuticals (1.7%):
7,000 Eli Lilly & Co., 5.25%, 6/18/96.......................... 6,827
7,000 Glaxo Holdings Inc., 5.65%, 2/28/96...................... 6,936
--------
13,763
--------
</TABLE>
Continued
43
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Telecommunications (5.2%):
7,000 American Telephone & Telegraph, 5.62%, 3/25/96........... $ 6,908
7,000 American Telephone & Telegraph, 5.58%, 4/25/96........... 6,875
7,000 Ameritech Capital Funding Corp.,
5.25%, 6/17/96.......................................... 6,829
6,000 Ameritech Corp., 5.63%, 3/4/96........................... 5,941
9,000 AT&T Capital Corp., 5.60%, 1/12/96....................... 8,985
7,000 MCI Communications Corp.,
5.64%, 2/16/96.......................................... 6,950
--------
42,488
--------
Total Commercial Paper 592,141
--------
U.S. GOVERNMENT AGENCIES (0.6%):
5,000 Student Loan Marketing Assoc.,
5.26%*, 1/2/96.......................................... 5,000
--------
Total U.S. Government Agencies 5,000
--------
CORPORATE BONDS (7.3%):
Automotive Finance (0.4%):
3,350 Toyota Motor Credit Corp.,
5.31%, 6/13/96.......................................... 3,349
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Banking (2.6%):
7,000 Bear Stearns, 5.80%, 11/27/96............................ 7,000
3,000 Citicorp, 6.01%*, 6/10/96................................ 3,002
3,000 First Fidelity Bank, 6.04%*, 8/2/96...................... 3,002
1,500 Marshall & Ilsley Bank, Madison,
6.00%*, 9/9/96.......................................... 1,500
2,000 Marshall & Ilsley Bank, Neillsville, 6.00%*, 7/5/96...... 2,000
5,000 Marshall & Ilsley Bank, Watertown, 5.92%*, 10/30/96...... 5,001
--------
21,505
--------
Financial Services (4.3%):
1,300 General Electric Capital, 5.87%, 2/26/96................. $ 1,300
3,920 Merrill Lynch, 5.30%*,................................... 3,919
30,000 Morgan Stanley, 6.13%*, 6/4/96........................... 30,000
--------
$ 35,219
--------
Total Corporate Bonds 60,073
--------
Total Investments 705,211
--------
REPURCHASE AGREEMENTS (13.7%):
30,000 Chemical Securities, 6.00%, 1/2/96***.................... 30,000
32,221 Lehman Brothers, 5.97%, 1/2/96***........................ 32,221
25,000 Paine Webber, 5.97%, 1/2/96***........................... 25,000
25,000 Paine Webber, 6.00%, 1/2/96***........................... 5,000
--------
Total Repurchase Agreements 112,221
--------
Total (Cost--$817,432)(a) $817,432
========
</TABLE>
- -------
Percentages are based on net assets of $814,736.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Floating Rate Demand Notes are securities with yields that vary with a
designated market index or market rate. These securities are payable on the
date of demand. The rate reflected on the Schedule of Portfolio Investments
is the effective rate at December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (53.1%):
Federal Farm Credit Banks:
5,000 5.49%, 1/16/96........................................... $ 4,989
Federal Home Loan Bank:
5,000 5.59%, 1/3/96............................................ 4,998
5,000 5.60%, 1/8/96............................................ 4,995
5,000 5.52%, 1/22/96........................................... 4,984
15,000 5.57%, 1/29/96........................................... 14,935
5,000 5.50%, 1/31/96........................................... 4,977
5,000 5.56%, 2/12/96........................................... 4,968
10,000 5.53%, 2/20/96........................................... 9,923
10,000 5.49%, 2/28/96........................................... 9,912
5,000 5.47%, 3/1/96............................................ 4,954
5,000 5.55%, 3/25/96........................................... 4,935
16,250 6.00%*, 5/6/96**......................................... 16,248
Federal Home Loan Mortgage Corp.:
5,000 5.52%, 2/5/96............................................ 4,973
Federal National Mortgage Assoc.:
5,000 5.67%, 1/5/96............................................ 4,997
5,000 5.67%, 1/9/96............................................ 4,994
10,000 5.61%, 1/12/96........................................... 9,983
10,000 5.43%, 1/17/96........................................... 9,976
10,000 5.57%, 1/19/96........................................... 9,972
5,000 5.51%, 1/29/96........................................... 4,978
15,000 5.52%, 2/8/96............................................ 14,912
15,000 5.58%, 2/21/96........................................... 14,882
5,000 5.50%, 3/6/96............................................ 4,950
10,000 5.50%, 3/14/96........................................... 9,888
10,000 5.43%, 3/15/96........................................... 9,888
5,000 5.43%, 4/24/96........................................... 4,914
Student Loan Marketing Assoc.:
10,000 5.27%*, 4/16/96**........................................ 10,000
--------
Total U.S. Government Agencies 210,125
--------
Total Investments 210,125
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
REPURCHASE AGREEMENTS (47.3%):
5,000 Aubrey Lanston, 5.88%, 1/2/96***......................... $ 5,000
10,000 BankAmerica Securities, 5.90%, 1/2/96***................. 10,000
25,000 Chemical, 6.0%, 1/2/96***................................ 25,000
37,285 Lehman, 5.97%, 1/2/96***................................. 37,285
35,000 Nomura, 5.97%*, 1/2/96***................................ 35,000
25,000 Paine Webber, 5.97%, 1/2/96***........................... 25,000
25,000 Paine Webber, 5.97%, 1/2/96***........................... 25,000
25,000 Paine Webber, 6.00%, 1/2/96***........................... 25,000
--------
Total Repurchase Agreements 187,285
--------
Total (Cost--$397,410)(a) $397,410
========
</TABLE>
- -------
Percentages are based on net assets of $395,949.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
* Floating Rate Demand Notes are securities with yields that vary with a
designated market index or market rate. These securities are payable on the
date of demand. The rate reflected on the Schedule of Portfolio Investments
is the effective rate at December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Treasury Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
U.S. TREASURY BILLS (25.3%):
5,000 1/26/96................................................... $ 4,982
5,000 2/1/96.................................................... 4,977
5,000 2/8/96.................................................... 4,971
5,000 2/22/96................................................... 4,961
10,000 3/7/96.................................................... 9,902
5,000 3/14/96................................................... 4,945
5,000 3/21/96................................................... 4,940
5,000 4/4/96.................................................... 4,930
5,000 5/30/96................................................... 4,890
10,000 6/27/96................................................... 9,748
10,000 7/25/96................................................... 9,708
5,000 8/22/96................................................... 4,835
--------
Total U.S. Treasury Bills 73,789
--------
U.S. TREASURY STRIPS (5.1%):
5,000 02/15/96.................................................. 4,966
10,000 2/15/96................................................... 9,932
--------
Total U.S. Treasury STRIPs 14,898
--------
Total Investments 88,687
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
REPURCHASE AGREEMENTS (70.0%):
5,000 Aubrey Lanston, 5.78%, 1/2/96***.......................... $ 5,000
60,000 Aubrey Lanston, 5.88%, 1/2/96***.......................... 60,000
5,000 Aubrey Lanston, 5.73%, 1/11/96***......................... 5,000
72,900 BankAmerica Securities, 5.90%, 1/2/96***.................. 72,900
14,500 Citicorp Securities, 5.75%, 1/2/96***..................... 14,500
14,500 Chemical Securities, 5.75%, 1/2/96***..................... 14,500
13,000 Goldman Sachs, 5.72%, 1/3/96***........................... 13,000
5,000 Lehman, 5.73%, 1/18/96***................................. 5,000
409 Lehman, 5.97%, 1/2/96***.................................. 409
14,000 Merrill Lynch, 5,50%, 1/2/96***........................... 14,000
--------
Total Repurchase Agreements 204,309
--------
Total (Cost--$292,996)(a) $292,996
========
</TABLE>
- -------
Percentages indicated are based on net assets of $291,738.
(a) Cost for federal income tax and financial reporting purposes are the same.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER (97.0%):
Alabama (3.9%):
7,300 City of Birmingham, Medical Clinic Board, 4.60%*,
12/1/26**.............................................. $ 7,300
--------
Arkansas (0.3%):
600 Arkansas, Hospital Equipment Financial Authority,
(Hospital Equipment Revenue), 4.00%*, 12/1/05**........ 600
--------
Colorado (3.0%):
4,500 Platte River, 3.45%, 3/11/96............................ 4,500
1,000 Platte River, 3.70%, 2/27/96............................ 1,000
--------
5,500
--------
Delaware (7.6%):
3,000 Delaware Economic Development Authority, Delmarva Power
& Light, Series A, 6.10%*, 10/1/17**................... 3,000
5,000 Delaware Economic Development Authority, Delmarva Power
& Light Co. Project, 6.10%*, 10/1/17**................. 5,000
2,600 Delaware Economic Development Authority, Series B,
5.25%*, 12/1/15**...................................... 2,600
3,400 Delaware State Economic Development Authority, Revenue
Bonds, 6.10%*, 10/1/29**............................... 3,400
--------
14,000
--------
Georgia (4.2%):
1,500 Burke County Development Authority, Pollution Control,
Revenue Bonds, Series A, 3.70%, 2/22/96................ 1,500
1,350 Cobb County, Georgia, School District, 6.13%, 2/1/96.... 1,353
500 Hapeville Georgia, Development Authority, Industrial
Development Revenue, 6.00%*, 11/1/15**................. 500
2,000 Municipal Gas Authority, 3.80%, 1/20/96................. 2,000
2,500 State of Georgia Municipal Gas Authority, Southern
Portfolio Project, 3.75%, 2/28/96...................... 2,500
--------
7,853
--------
Hawaii (0.6%):
1,000 Hawaii State, Series B, 6.90%, 8/1/97**................. 1,034
--------
Illinois (5.1%):
5,000 Fulton Solid Waste Disposal, Series A, 3.85%, 1/11/96... 5,000
1,475 Illinois, Health Facilities, Authority Revenue,
Franciscan Project, Series A, 4.30%*, 5/15/19**........ 1,475
1,000 Illinois, Health Facility, Authority Revenue, Evanston
Hospital, 4.30%, 2/29/96............................... 1,000
2,000 Illinois State, Revenue Notes, 4.50%, 4/12/96........... 2,004
--------
9,479
--------
Indiana (0.2%):
400 Indianapolis Industrial Resource Recovery, Ogden Martin
Systems, Revenue Bonds, 6.10%*, 12/1/16**.............. 400
--------
Kansas (3.6%):
1,300 Burlington Pollution Control, KC Power & Light Project,
Commercial Paper, 3.80%, 2/12/96....................... 1,300
2,400 City of Burlington Pollution Control, Series A, Kansas
City Power & Light Project, 3.60%, 2/13/96............. 2,400
3,000 State of Kansas, Series 94B, 4.15%*, 9/1/14**........... 3,000
--------
6,700
--------
</TABLE>
Continued
47
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Kentucky (3.2%):
1,350 Jefferson County, 3.80%, 2/12/96........................ $ 1,350
4,500 Lexington-Fayette Urban County Airport, 6.20%*,
4/1/24**............................................... 4,500
--------
5,850
--------
Louisiana (2.2%):
1,300 De Soto Parish, Pollution Control, Central Louisiana
Electric Co., Series A, 3.95%*, 7/1/18**............... 1,300
900 Louisiana Recovery District Sales Tax, Revenue Bonds,
6.00%*, 7/1/97**....................................... 900
1,900 Louisiana Recovery District Sales Tax, Revenue Bonds,
6.00%*, 7/1/98**....................................... 1,900
--------
4,100
--------
Maryland (1.1%):
2,000 Baltimore, 3.45%, 1/25/96............................... 2,000
--------
Michigan (12.5%):
200 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series D, 6.00%*, 12/1/23*............................. 200
1,000 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series E, 6.00%*, 12/1/23**............................ 1,000
3,200 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series F, 6.00%*, 12/1/13**............................ 3,200
1,000 Detroit Downtown Development Authority, Millender Center
Projects, 4.10%*, 12/1/10**............................ 1,000
1,000 Grand Rapids, Economic Development Corp., Amway Hotel
Corp., Series B, 4.10%*, 8/1/17**...................... 1,000
1,000 Kalamazoo Michigan, 4.50%, 4/1/96....................... 1,002
2,800 Kent Hospital Finance Authority, Butterworth, Hospital,
Series A, 4.35%*, 1/15/20**............................ 2,800
1,000 Michigan Hospital Financial Authority, Hutzel Hospital
Project, 8.00%, 3/1/96................................. 1,027
3,900 Michigan State, Housing Development Authority, Pine
Ridge, 4.00%*, 10/1/07**............................... 3,900
500 Michigan Strategic Fund, Series A, 5.95%*, 6/15/10**.... 500
500 Michigan South Central Power Agency, 7.25%, 11/1/06**... 524
500 Monroe County, Economic Development Corp., Detroit
Edison, Series C, 5.95%*, 10/1/24**.................... 500
4,400 University of Michigan Hospitals, Revenue Bonds, Series
A, 5.90%*, 12/1/27**................................... 4,400
600 University of Michigan, Series A, 5.90%*, 12/1/19**..... 600
1,400 University of Michigan, Student Fee Revenues, 6.75%,
4/1/96................................................. 1,410
--------
23,063
--------
Minnesota (4.4%):
1,000 Bloomington Port Authority Mall, Refunding Bonds, Series
A, 4.00%, 2/1/96....................................... 1,000
100 Rochester, 3.70%, 2/21/96............................... 100
2,000 Rochester Health Care, Mayo Foundation/Mayo, Medical
Center, Series F, 3.70% 2/21/96........................ 2,000
2,000 Rochester Health Care, Mayo Foundation/Mayo, Medical
Center, Commercial Paper, Series B, 3.80%, 2/14/96..... 2,000
2,950 Rochester Health Care, Mayo Foundation/Mayo, Medical
Center, Commercial Paper, Series F, 3.70%, 2/22/96..... 2,950
--------
8,050
--------
</TABLE>
Continued
48
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Missouri (3.2%):
2,000 Kansas City, Industrial Development Authority, 4.38%*,
12/31/08**............................................. $ 2,000
800 Missouri Health & Education Facilities, Washington
University, Series B, 6.00%*, 3/1/17**................. 800
3,000 Missouri Health & Educational Facilities, Washington
University Revenue Bonds, 6.00%*, 3/1/17**............. 3,000
100 Missouri Health & Educational Facilities, St. Lukes
Episcopal Hospital Project, Series B, 6.00%*,
12/1/16**.............................................. 100
--------
5,900
--------
New Jersey (2.5%):
1,000 New Jersey Economic Development Authority, 3.70%,
4/30/96................................................ 1,000
3,550 New Jersey State, 7.30%, 11/1/96........................ 3,673
--------
4,673
--------
New York (1.1%):
1,000 New York Energy XL620, Revenue Bonds, 5.90%*, 6/1/29**.. 1,000
1,000 State of New York Medical Care Facilities, Revenue
Bonds, Series A, 8.50%, 1/15/96........................ 1,022
--------
2,022
--------
North Carolina (0.9%):
1,700 North Carolina Eastern Municipal Power, Series B, 3.70%,
2/26/96................................................ 1,700
--------
Ohio (2.5%):
1,500 Columbus Ohio Waterworks Enlargement # 44, General
Obligation, 7.60%, 5/1/96.............................. 1,519
3,000 Ohio State Water Development, 7.75%, 6/1/96, Prerefunded
@ 103.................................................. 3,138
--------
4,657
--------
Pennsylvania (5.1%):
2,500 Alleghany County, 3.75%, 11/7/96........................ 2,500
1,000 College Township Industrial Development, 4.10%*,
11/1/11**.............................................. 1,000
2,000 Delaware County, Pennslyvania, 4.25%*, 12/1/15**........ 2,000
500 Montgomery County, 3.70%, 1/9/96........................ 500
2,000 Montgomery County, 3.75%, 1/24/96....................... 2,000
1,500 Montgomery County, 3.75%, 2/15/96....................... 1,500
--------
9,500
--------
South Carolina (1.6%):
1,000 Charleston County South Carolina School District,
Municipal Bonds, 4.70%, 3/1/96......................... 1,002
2,000 Charleston School District, Revenue Notes, 4.50%,
4/15/96................................................ 2,004
--------
3,006
--------
Tennessee (3.4%):
5,000 Tennessee State Local Development Authority-Series A,
Bond Anticipation Notes, 4.75%, 5/31/96................ 5,021
1,250 Tennessee State, General Obligation Municipal Bond,
4.70%, 4/1/96.......................................... 1,254
--------
6,275
--------
</TABLE>
Continued
49
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Texas (12.0%):
1,000 City of San Antonio Water Supply, Series 1992,
Commercial Paper, 3.65%, 1/17/96....................... $ 1,000
3,000 Houston, 3.65%, 1/18/96................................. 3,000
1,500 Houston, 3.75%, 1/31/96................................. 1,500
1,000 Harris County Health Facilities, Methodist Hospital,
4.15%*, 12/1/25**...................................... 1,000
4,700 Harris County Health Facilities, St. Lukes Episcopal
Hospital Project, Series A, 3.85%*, 2/15/16**.......... 4,700
2,000 San Antonio, 3.85%, 1/22/96............................. 2,000
1,000 San Antonio, Series A, 3.65%, 2/23/96................... 1,000
3,000 San Antonio Texas Electric & Gas, Muni Notes, 4.30%,
2/1/96................................................. 3,002
5,000 State of Texas Tax & Revenue Anticipation Notes, 4.75%,
8/30/96................................................ 5,024
--------
22,226
--------
Virginia (1.3%):
900 Alexandria Industrial Development Authority, Resource
Recovery, 6.10%*, 12/1/16**............................ 900
1,400 Henrico County Water & Sewer, Muni/Revenue Bonds, Series
1986, 7.80%, 5/1/96.................................... 1,436
--------
2,336
--------
Washington (1.2%):
2,210 Washington State, Series R-96C, 4.00%, 4/1/96........... 2,214
--------
Wisconsin (2.5%):
3,200 Carlton Pollution Control Revenue, Wisconsin Power, &
Light Co., Project B, 6.10%*, 9/1/05**................. 3,200
600 Town of Carlton, Wisconsin Power & Light, 6.10%*,
10/1/00**.............................................. 600
875 Town of Carlton, Wisconsin Power & Light, 6.10%*,
10/1/00**.............................................. 875
--------
4,675
--------
Wyoming (7.8%):
4,400 Converse County Pollution Control Revenue, Pacificorp
Projects, 6.00%*, 11/1/24**............................ 4,400
900 Lincoln County Pollution Control, Exxon Project, Series
A, 5.90%*, 7/1/17**.................................... 900
2,700 Lincoln County Pollution Control, Pacificorp Project,
6.00%*, 11/1/24**...................................... 2,700
3,000 Platte County, Series 1984-A, 6.00%*, 7/1/14**.......... 3,000
2,100 Platte County, Pollution Control, Revenue Bond, 6.00%*,
7/1/14**............................................... 2,100
1,400 Sweetwater County Pollution Control, Pacificorp Project,
6.00%*, 11/1/24**...................................... 1,400
--------
14,500
--------
Total Municipal Bonds, Notes, & Commercial Paper 179,613
--------
INVESTMENT COMPANIES (2.6%):
4,726 Pimco Municipal Fund, Money Market Mutual Fund.......... 4,726
--------
Total Investment Companies 4,726
--------
Total (Cost--$ 184,339)(a) $184,339
--------
</TABLE>
- -------
Percentages indicated are based on total net assets of $185,118.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rate,
which will change periodically, is based upon bank prime rates or and index
of market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect on December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
See notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
High Income Equity Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (72.8%):
Banking (2.2%):
79,150 First Tennessee National Corp.............................. $ 4,789
142,200 PNC Bank Corp.............................................. 4,586
--------
9,375
--------
Beverages (2.4%):
138,000 Coca Cola Co............................................... 10,246
--------
Consumer Goods & Services (3.3%):
171,100 Procter & Gamble Co........................................ 14,201
--------
Electric Utility (7.8%):
251,550 Duke Power Co. ............................................ 11,917
267,600 Florida Power & Light, Inc................................. 12,410
121,750 New England Electric System................................ 4,824
116,300 Texas Utilities............................................ 4,783
--------
33,934
--------
Electrical & Electronic (2.8%):
147,500 Emerson Electric Co. ...................................... 12,058
--------
Environmental Services (0.9%):
130,550 Browning-Ferris Industries, Inc............................ 4,096
--------
Financial Services (4.9%):
175,950 American Express........................................... 9,765
313,050 MBNA Corp.................................................. 11,544
--------
21,309
--------
Food Products & Services (3.7%):
108,800 Conagra, Inc............................................... 4,488
351,450 H.J. Heinz Co.............................................. 11,642
--------
16,130
--------
Funeral Services (3.1%):
298,939 Service Corp. International................................ 13,153
--------
Health Care (6.2%):
104,300 Bristol Myers Squibb Co.................................... 8,957
147,100 Johnson & Johnson.......................................... 12,595
107,000 U.S. Healthcare, Inc....................................... 4,976
--------
26,528
--------
Industrial Goods & Services (2.6%):
116,150 United Technologies Corp................................... 11,020
--------
Insurance (1.0%):
105,033 Allstate Corp. ............................................ 4,319
--------
Machinery & Equipment (1.6%):
148,000 Snap-On, Inc............................................... 6,697
--------
Manufacturing--Consumer Goods (2.2%):
185,800 Duracell................................................... 9,615
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Office Equipment & Services (2.6%):
81,050 Xerox Corp................................................. $ 11,104
--------
Oil & Gas Exploration Products & Services (10.2%):
72,800 Atlantic Richfield Co. .................................... 8,062
110,650 Mobil Corp................................................. 12,393
272,100 Occidental Petroleum Corp. ................................ 5,816
136,050 Questar Corp. ............................................. 4,558
92,750 Royal Dutch Petroleum Co................................... 13,089
--------
43,918
--------
Pharmaceuticals (5.4%):
91,250 American Home Products..................................... 8,851
258,700 Eli Lilly & Co............................................. 14,552
--------
23,403
--------
Retail Stores/Catalog (3.4%):
108,050 May Department Stores...................................... 4,565
258,550 Sears Roebuck.............................................. 10,084
--------
14,649
--------
Tobacco (3.3%):
430,700 UST, Inc................................................... 14,375
--------
Telecommunications (3.2%):
82,250 AT&T Corp.................................................. 5,326
285,500 Frontier Corp.............................................. 8,565
--------
13,891
--------
Total Common Stocks 314,021
--------
CONVERTIBLE BONDS (13.9%):
Business Services (0.9%):
2,605,000 First Financial Management Corp., 5.00%, 12/15/99.......... 4,054
--------
Computer Software (1.9%)
3,710,000 Sterling Software, 5.75%, 2/1/03........................... 8,060
--------
Consumer Goods & Services (1.0%):
3,715,000 Olsten Corp., 4.88%, 5/15/03............................... 4,291
--------
Electrical & Electronic (1.2%):
3,995,000 Integrated Device Tech, Inc., 5.50%, 6/1/02................ 3,266
2,040,000 VLSI Technology, 8.25%, 10/1/05............................ 1,872
--------
5,138
--------
Environmental Services (1.0%):
4,225,000 Browning Ferris Industries, Inc., 6.75%, 7/18/05........... 4,209
--------
</TABLE>
Continued
51
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
High Income Equity Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
CONVERTIBLE BONDS, CONTINUED:
Health Care (2.2%):
6,040,000 Healthsouth Rehabilitation Corp., 5.00%, 4/1/01............ $ 9,649
--------
Insurance (1.0%):
101,500 Allstate, 6.76%, 1998...................................... 4,162
--------
Printing & Publishing (0.7%):
2,965,000 Scholastic Corp., 5.00%, 8/15/05........................... 3,083
--------
Restaurants (1.0%):
2,510,000 Wendy's International, 7.00%, 4/1/06....................... 4,301
--------
Retail Stores (1.2%):
3,970,000 Lowe's Cos., 3.00%, 7/22/03................................ 5,161
--------
Technology (1.8%):
4,280,000 Analog Devices Corp., 3.50%, 12/1/00....................... 4,574
3,005,000 General Instrument, 5.00%, 6/15/00......................... 3,302
--------
7,876
--------
Total Convertible Bonds 59,984
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
PREFERRED STOCKS (10.9%):
Banking (1.6%):
80,100 First Bank System......................................... $ 6,869
--------
Financial Services (3.8%):
248,350 First U.S.A. ............................................. 9,810
100,800 Sunamerica, Inc. ......................................... 6,602
--------
16,412
--------
Office Equipment & Services (2.7%):
135,000 Alco Standard............................................. 11,542
--------
Oil & Gas Industry (1.1%):
199,000 Enron Oil & Gas Corp...................................... 4,776
--------
Paper Products (0.9%):
128,450 Bowater, Inc.............................................. 3,918
--------
Printing & Publishing (0.8%):
45,300 Houghton Mifflin (b)...................................... 3,488
--------
Total Preferred Stocks 47,005
--------
Total Investments, at value 421,010
--------
REPURCHASE AGREEMENTS (1.9%):
8,398,000 Goldman Sachs, 5.95%, 1/2/96***........................... 8,398
--------
Total Repurchase Agreements 8,398
--------
Total (Cost--$346,486)(a) $429,408
========
</TABLE>
- -------
Percentages indicated are based on net assets of $431,115.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $87,068
Unrealized depreciation....................................... (4,146)
-------
Net unrealized appreciation................................... $82,922
=======
</TABLE>
(b) Represents non-income producing securities.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Large Capitalization Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (92.7%):
Agriculture (1.4%)
4,300 CPC Industries............................................. $ 296
-------
Beverages (1.9%)
5,400 Coca Cola Co............................................... 404
-------
Broadcasting & Publishing (1.9%)
10,600 British Sky Broadcasting--ADR.............................. 399
-------
Business Services (5.9%)
7,300 American Express Co........................................ 302
9,100 First Data Corp............................................ 609
5,800 General Motors, Class E.................................... 301
-------
1,212
-------
Computer Hardware (4.8%)
6,500 Cisco Systems, Inc. (b).................................... 485
5,100 Intel Corp. (b)............................................ 289
4,600 3 Com Corp. (b)............................................ 214
-------
988
-------
Computer Software (6.2%)
5,200 Computer Associates International, Inc..................... 296
4,500 Microsoft (b).............................................. 395
13,800 Oracle Corp. (b)........................................... 585
-------
1,276
-------
Consumer Goods & Services (10.3%)
11,900 CUC International Inc. (b)................................. 406
7,700 Gillette Co................................................ 401
6,200 Kimberly Clark............................................. 501
6,000 Nike, Inc.................................................. 409
4,800 Procter & Gamble Co........................................ 398
-------
2,115
-------
Distribution (1.5%)
9,400 Sysco Corporation.......................................... 300
-------
Diversified (1.5%)
4,200 General Electric Co........................................ 302
-------
Electrical & Electronic (1.9%)
5,000 Emerson Electric Co........................................ 409
-------
Electronic Components/ Instruments (1.2%)
6,500 AMP, Inc................................................... 249
-------
Entertainment (2.9%)
8,300 Carnival Cruise Lines...................................... 202
8,400 Viacom, Inc................................................ 398
-------
600
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (4.4%)
4,800 Federal National Mortgage Assoc............................ $ 596
8,300 MBNA Corp.................................................. 306
-------
902
-------
Food Products & Services (3.9%)
8,800 McDonald's Corp............................................ 397
7,100 PepsiCo Inc................................................ 397
-------
794
-------
Health Care (6.5%)
9,900 Abbott Labs................................................ 413
5,800 Johnson & Johnson.......................................... 497
9,000 U.S. Healthcare Inc........................................ 419
-------
1,329
-------
Industrial Goods & Services (2.4%)
5,300 United Technologies Corp................................... 503
-------
Insurance (3.9%)
5,300 American International Group............................... 490
3,400 March & Mclennan........................................... 302
-------
792
-------
Machinery & Equipment (0.9%)
4,800 Applied Materials (b)...................................... 189
-------
Manufacturing-Consumer Goods (1.0%)
4,000 Duracell................................................... 207
-------
Medical Equipment & Supplies (2.9%)
4,200 Boston Scientific Corp..................................... 199
7,200 Medtronic, Inc............................................. 402
-------
601
-------
Medical-Hospital Services (2.0%)
7,800 Columbial/HCA Healthcare Corporation....................... 404
-------
Office Equipment & Services (7.2%)
8,800 Alco Standard Corp......................................... 402
2,800 Automatic Data Processing.................................. 208
4,700 Hewlett Packard............................................ 394
3,600 Xerox Corp................................................. 493
-------
1,397
-------
Pharmaceuticals (7.8%)
5,400 Eli Lilly & Co............................................. 304
7,700 Merck & Company, Inc....................................... 506
7,900 Pfizer..................................................... 498
5,500 Schering Plough............................................ 301
-------
1,609
-------
</TABLE>
Continued
53
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Large Capitalization Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Printing & Publishing (1.5%)
7,800 R.R. Donnelley Co.......................................... $ 307
-------
Retail Stores/Catalog (3.4%)
4,200 Home Depot Inc............................................. 201
12,900 Sears Roebuck.............................................. 503
-------
704
-------
Technology (1.0%)
3,500 Motorola, Inc.............................................. 199
-------
Telecommunications (1.5%)
10,900 Airtouch Communications, Inc. (b).......................... 308
-------
Telecommunications-Services And Equipment (1.0%)
6,000 Worldcom, Inc.............................................. 202
-------
Total Common Stocks 19,094
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL MARKET
AMOUNT SECURITY DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
REPURCHASE AGREEMENTS (38.8%)
4,000,000 Goldman Sachs, 5.95%, 1/2/96***............................ $ 4,000
4,000,000 Nomura, 5.00%, 1/2/96***................................... 4,000
-------
Total Repurchase Agreements 8,000
-------
Total (Cost--$27,063)(a) $27,094
=======
</TABLE>
- -------
Percentages indicated are based on net assets of $20,596.
(a) Represents costs for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.......................................... $117
Unrealized depreciation.......................................... (86)
----
Net unrealized appreciation...................................... $ 31
====
</TABLE>
(b) Represents non-income producing securities.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
54
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Equity Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (94.6%):
Broadcasting (2.9%):
420,900 British Sky Broadcasting--ADR............................. $ 15,836
416,350 Tele-Communications, Class A (b).......................... 8,275
--------
24,111
--------
Business Services (9.3%):
402,450 Ceridian Corp. (b)........................................ 16,601
164,300 Computer Science (b)...................................... 11,542
523,123 First Data Corp........................................... 34,984
249,900 Paychex................................................... 12,464
--------
75,591
--------
Computer Hardware (8.4%):
263,100 3 Com Corp. (b)........................................... 12,267
257,400 Cisco Systems, Inc. (b)................................... 19,208
230,100 Fore Systems, Inc. (b).................................... 13,691
489,800 LSI Logic Corp. (b)....................................... 16,041
283,400 Silicon Graphic, Inc. (b)................................. 7,794
--------
69,001
--------
Computer Software (10.3%):
146,000 Baan Co. (b).............................................. 6,606
394,500 GT Interactive Software Corp. (b)......................... 5,523
252,600 Informix Corp. (b)........................................ 7,578
113,300 Microsoft Corp. (b)....................................... 9,942
636,650 Oracle Systems Corp. (b).................................. 26,978
240,100 Parametric Technology Corp. (b)........................... 15,967
269,900 PeopleSoft, Inc. (b)...................................... 11,606
--------
84,200
--------
Consumer Goods & Services (6.2%):
644,350 CUC International, Inc. (b)............................... 21,988
444,300 Gillette Co............................................... 23,159
145,700 Nine West Group, Inc. (b)................................. 5,464
--------
50,611
--------
Electrical & Electronic (2.1%):
102,100 Altera Corp. (b).......................................... 5,080
378,983 Molex, Inc................................................ 11,607
--------
16,687
--------
Entertainment (4.1%):
345,300 Carnival Cruise Lines..................................... 8,417
249,650 Mirage Resorts (b)........................................ 8,613
354,471 Viacom, Inc., Class B (b)................................. 16,793
--------
33,823
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services (8.7%):
115,000 Federal National Mortgage Assoc........................... $ 14,274
280,150 First USA, Inc............................................ 12,432
552,300 Greentree Financial Corp.................................. 14,567
212,250 MBNA Corp................................................. 7,827
176,450 PMI Group, Inc............................................ 7,984
212,700 Sunamerica, Inc........................................... 10,103
142,400 United Cos. Financial Corp................................ 3,756
--------
70,943
--------
Funeral Services (1.8%):
341,800 Service Corp. International............................... 15,039
--------
Health Care (4.8%):
604,050 HEALTHSOUTH Corp. (b)..................................... 17,593
477,750 Health Management Associates (b).......................... 12,481
249,800 Manor Care................................................ 8,743
--------
38,817
--------
Hotels & Lodging (3.7%):
367,900 Hospitality Franchise Systems (b)......................... 30,076
--------
Insurance (1.3%):
112,350 American International Group.............................. 10,392
--------
Machinery & Equipment (1.1%):
73,150 Applied Materials (b)..................................... 2,880
94,900 KLA Instruments Corp. (b)................................. 2,473
131,000 Ultratech Stepper, Inc. (b)............................... 3,373
--------
8,726
--------
Manufacturing--Consumer Goods (1.9%):
297,000 Duracell International.................................... 15,370
--------
Medical Equipment & Supplies (1.3%):
221,300 IDEXX Laboratories, Inc. (b).............................. 10,401
--------
Office Equipment & Services (6.2%):
418,600 Alco Standard Corp........................................ 19,099
171,300 Danka Business Systems.................................... 6,338
221,900 Viking Office Products (b)................................ 10,318
108,300 Xerox Corp................................................ 14,837
--------
50,592
--------
Pharmaceutical Distribution (1.2%):
183,250 Cardinal Health, Inc...................................... 10,033
--------
Pharmaceuticals (3.5%):
316,350 Merck & Co., Inc.......................................... 20,800
152,650 Watson Pharmaceutical, Inc. (b)........................... 7,480
--------
28,280
--------
</TABLE>
Continued
55
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Equity Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Radio/Television (1.6%):
133,600 Clear Channel Communications, Inc. (b).................... $ 5,895
203,500 Infinity Broadcasting (b)................................. 7,580
--------
13,475
--------
Restaurants (1.2%):
245,950 Lone Star Steakhouse & Saloon (b)......................... 9,438
--------
Retail Stores (7.8%):
246,600 Autozone, Inc. (b)........................................ 7,121
218,350 Barnes & Noble (b)........................................ 6,332
341,050 Home Depot, Inc........................................... 16,328
397,700 Office Depot, Inc. (b).................................... 7,855
339,850 Petsmart, Inc. (b)........................................ 10,535
283,700 Sunglass Hut International (b)............................ 6,738
381,550 Wal-Mart Stores........................................... 8,537
--------
63,446
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology (3.6%):
397,150 Linear Technology Corp................................... $ 15,588
135,300 Motorola, Inc............................................ 7,712
171,850 Tellabs, Inc. (b)........................................ 6,359
--------
29,659
--------
Telecommunications (0.7%):
210,800 Airtouch Communications, Inc. (b)........................ 5,955
--------
Textile Products (0.9%):
172,200 Cintas Corp.............................................. 7,663
--------
Total Common Stocks 772,329
--------
Total Investments, at value 772,329
--------
REPURCHASE AGREEMENTS (5.4%):
44,179,000 Goldman Sachs, 5.95%, 1/2/96***.......................... 44,179
--------
Total Repurchase Agreements 44,179
--------
Total (Cost--$547,253)(a) $816,508
========
</TABLE>
- -------
Percentages are based on net assets of $816,805.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $279,907
Unrealized depreciation...................................... (10,652)
--------
Net unrealized appreciation.................................. $269,255
========
</TABLE>
(b) Represents non-income producing securities.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Small Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (94.5%):
Automotive Finance (0.7%):
153,200 First Merchants Acceptance Corp. (b)...................... $ 2,834
121,100 Jayhawk Acceptance Corp. (b).............................. 1,105
--------
3,939
--------
Business Services (9.6%):
355,000 Acxiom Corp. (b).......................................... 9,718
388,600 Alternative Resources Corp. (b)........................... 11,755
258,900 Checkpoint Systems, Inc. (b).............................. 9,676
125,300 Fair Issac & Co., Inc..................................... 3,242
160,850 PMT Services, Inc. (b).................................... 4,866
207,300 Peak Technologies (b)..................................... 6,478
215,000 U.S. Delivery Systems, Inc. (b)........................... 6,235
--------
51,970
--------
Computer Hardware (1.9%):
274,000 Micro Linear Corp. (b).................................... 2,808
146,800 Premenos Technology Corp. (b)............................. 3,872
157,800 Visioneer, Inc. (b)....................................... 3,511
--------
10,191
--------
Computer Software (18.1%):
175,650 Cambridge Technology Partners, Inc. (b)................... 10,100
214,050 Dendrite International, Inc. (b).......................... 3,853
203,200 Discreet Logic, Inc. (b).................................. 5,080
125,400 Eagle Point Software Corp. (b)............................ 2,696
176,100 FTP Software, Inc. (b).................................... 5,107
244,050 Inso Corp. (b)............................................ 10,372
254,700 Macromedia, Inc. (b)...................................... 13,308
339,825 McAfee Associates, Inc. (b)............................... 14,910
275,700 Minnesota Educational Computing
Corp. (b)................................................ 6,893
570,600 Netmanage, Inc. (b)....................................... 13,266
149,100 Project Software & Development, Inc. (b).................. 5,200
97,700 Sync Research, Inc. (b)................................... 4,421
255,100 Systemsoft Corp. (b)...................................... 2,870
--------
98,076
--------
Correctional Facilities (1.7%):
173,000 Corrections Corp. of America (b).......................... 6,423
106,800 Wackenhut Corrections Corp. (b)........................... 2,697
--------
9,120
--------
Education (0.2%):
30,900 Sylvan Learning Systems, Inc. (b)......................... 919
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical & Electronic (1.4%):
190,950 Actel Corp. (b)........................................... $ 2,053
174,400 Flextronics International Ltd. (b)........................ 5,232
--------
7,285
--------
Entertainment (2.4%):
437,650 Regal Cinemas (b)......................................... 13,020
--------
Financial Services (10.1%):
188,000 Aames Financial Corp...................................... 5,240
401,600 Concord EFS, Inc. (b)..................................... 16,968
926,300 Credit Acceptance Corp. (b)............................... 19,221
256,900 Imperial Credit Industries, Inc. (b)...................... 5,588
346,000 Oxford Resources Corp., Class A (b)....................... 7,785
--------
54,802
--------
Health Care (11.4%):
224,900 American Medical Response (b)............................. 7,309
145,900 Community Health Systems (b).............................. 5,198
94,400 Compdent Corp. (b)........................................ 3,918
22,100 HCIA, Inc. (b)............................................ 1,033
401,400 Medpartners, Inc. (b)..................................... 13,246
197,900 Occusystems, Inc. (b)..................................... 3,958
252,300 Orthodontic Centers of America (b)........................ 12,173
291,000 Phycor, Inc. (b).......................................... 14,714
--------
61,549
--------
Hotels & Lodging (0.5%):
109,800 Studio Plus Hotels, Inc. (b).............................. 2,827
--------
Insurance (0.8%):
162,800 Amerin Corp. (b).......................................... 4,355
--------
Medical Equipment & Supplies (7.1%):
323,200 Gulf South Medical Supply (b)............................. 9,777
456,950 Omnicare, Inc............................................. 20,449
224,400 Henry Schein, Inc. (b).................................... 6,620
99,700 Serologicals Corp. (b).................................... 1,645
--------
38,491
--------
Medical--Hospital Services (1.3%):
232,300 Total Renal Care Holdings, Inc. (b)....................... 6,853
--------
Pharmaceuticals (4.3%):
347,900 Dura Pharmaceuticals (b).................................. 12,090
139,200 Parexel International Corp. (b)........................... 4,628
168,000 Quintiles Transnational Corp. (b)......................... 6,888
--------
23,606
--------
</TABLE>
See notes to financial statements.
57
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Small Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Prinicpal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Photography (0.8%):
171,650 Pinnacle Systems, Inc. (b).............................. $ 4,248
--------
Restaurants (0.9%):
280,000 Landry's Seafood Restaurants (b)........................ 4,778
--------
Retail Stores (11.5%):
287,400 Books-A-Million, Inc. (b)............................... 3,700
140,000 CDW Computer Center, Inc. (b)........................... 5,670
154,700 Creative Computers, Inc. (b)............................ 2,823
348,350 Hollywood Entertainment Corp. (b)....................... 2,917
205,900 Just For Feet, Inc. (b)................................. 7,361
349,500 Men's Wearhouse (b)..................................... 9,000
385,000 Micro Warehouse, Inc. (b)............................... 16,651
189,850 Petco Animal Supplies, Inc. (b)......................... 5,553
78,200 Rexall Sundown, Inc. (b)................................ 1,720
217,400 West Marine, Inc. (b)................................... 6,794
--------
62,189
--------
Technology (5.3%):
101,100 Alantec Corp. (b)....................................... 5,889
98,300 C.P. Clare Corp. (b).................................... 2,015
162,300 Electroglas, Inc. (b)................................... 3,976
172,500 Electronics for Imaging, Inc. (b)....................... 7,547
182,000 Sanmina Corp. (b)....................................... 9,441
--------
28,868
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications (3.5%):
670,600 LCI International, Inc. (b)............................. $ 13,747
208,300 Transaction Network Services (b)........................ 5,208
--------
18,955
--------
Wholesale Distribution (1.0%):
215,400 Brightpoint, Inc. (b)................................... 3,043
173,100 Thompson PBE, Inc. (b).................................. 2,423
--------
5,466
--------
Total Common Stocks 511,507
--------
Total Investments, at value 511,507
--------
REPURCHASE AGREEMENTS (6.0%):
32,781,000 Goldman Sachs 5.95%, 1/2/96***.......................... 32,781
--------
Total Repurchase Agreements 32,781
--------
Total (Cost--$336,301)(a) $544,288
========
</TABLE>
- -------
Percentages indicated are based on net assets of $541,519.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $218,428
Unrealized depreciation...................................... (10,441)
--------
Net unrealized appreciation.................................. $207,987
========
</TABLE>
(b) Represents non-income producing securities.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (87.7%):
AUSTRALIA (3.7%):
Beverages & Tobacco (1.0%):
1,920,000 Foster Brewing Group Ltd................................. $ 3,143
--------
Building Products (0.9%):
1,200,000 Pioneer International.................................... 3,080
--------
Diversified (0.5%):
354,637 Smith (Howard) Ltd....................................... 1,675
--------
Packaging (1.3%):
600,000 Amcor Ltd................................................ 4,227
--------
Total Australia 12,125
--------
BELGIUM (1.0%):
Retail Stores/Catalog (1.0%):
12,000 Colrayt.................................................. 3,288
--------
BRITAIN (8.7%):
Building Products (1.5%):
1,800,000 Polypipe PLC............................................. 4,891
--------
Capital Goods (1.5%):
800,000 Powerscreen.............................................. 4,813
--------
Commercial Services (0.5%):
325,000 Rentokil................................................. 1,690
--------
Electrical & Electronic (1.5%):
450,000 Farnell Electronics...................................... 5,020
--------
Food Products & Services (1.3%):
550,000 Compass Group............................................ 4,180
--------
Manufacturing--Consumer Goods (1.0%):
1,200,000 Halma PLC................................................ 3,279
--------
Media (1.4%):
500,000 Reuters.................................................. 4,576
--------
Total Britain 28,449
--------
CANADA (2.2%):
Aerospace (1.6%):
400,000 Bombardier............................................... 5,296
--------
Electronic Components/Instruments (0.2%):
32,900 Cinram Ltd............................................... 609
--------
Printing & Publishing (0.4%):
75,000 Moore Corp. Ltd.......................................... 1,392
--------
Total Canada 7,297
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
DENMARK (2.8%):
Food Products & Services (1.8%):
121,000 Danisco.................................................. $ 5,840
--------
Health Care (1.0%):
25,000 Novo Nordisk............................................. 3,424
--------
Total Denmark 9,264
--------
FINLAND (0.5%):
Retail Stores/Catalog (0.5%):
29,500 Stockmann................................................ 1,522
--------
FRANCE (10.1%):
Consumer Goods & Services (4.2%):
71,820 BIC...................................................... 7,237
35,000 Hermes International S.A................................. 6,584
--------
13,821
--------
Machinery & Equipment (1.3%):
13,554 Sidel.................................................... 4,223
--------
Retail Stores/Catalog (3.6%):
38,775 Castorama Dubois Investisse.............................. 6,355
34,850 Docks de France.......................................... 5,298
--------
11,653
--------
Tobacco (1.0%):
90,000 Seita.................................................... 3,280
--------
Total France 32,977
--------
GERMANY (5.7%):
Engineering (1.4%):
14,475 Mannesmann............................................... 4,628
--------
Machinery & Equipment (1.7%):
9,000 Linde AG................................................. 5,311
--------
Pharmaceuticals (1.3%):
65,000 Schering AG.............................................. 4,335
--------
Retail Stores/Catalog (1.3%):
120,000 Douglas Holdings......................................... 4,242
--------
Total Germany 18,516
--------
HOLLAND (7.6%):
Beverages & Tobacco (1.4%):
127,500 Grolsch.................................................. 4,438
--------
Broadcasting & Publishing (1.6%):
400,000 Elsevier NV.............................................. 5,340
--------
Distribution (1.0%):
60,000 Hagemeyer NV............................................. 3,136
--------
</TABLE>
Continued
59
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
HOLLAND, CONTINUED:
Industrial Goods & Services (0.8%):
102,777 Vereigde Machine Stork................................... $ 2,552
--------
Office Equipment & Services (1.0%):
55,000 OCE Van DeGrinten........................................ 3,348
--------
Printing & Publishing (1.8%):
61,643 Wolters Kluwer........................................... 5,837
--------
Total Holland 24,651
--------
HONG KONG (1.4%):
Electrical & Electronic (0.4%):
750,000 Johnson Electric Holdings................................ 1,336
--------
Retail Stores/Catalog (1.0%):
4,000,000 Giordano International................................... 3,425
--------
Total Hong Kong 4,761
--------
INDONESIA (1.2%):
Distribution (0.7%):
396,000 Modern Photo............................................. 2,295
--------
Tobacco (0.5%):
164,000 Hanjaya Mandala Sampoerna................................ 1,707
--------
Total Indonesia 4,002
--------
ITALY (0.6%):
Manufacturing--Capital Goods (0.6%):
755,000 Sasib Di Risp Ordinary................................... 1,829
--------
JAPAN (18.7%):
Chemical (1.3%):
158,000 Kurita Water............................................. 4,212
--------
Computer Software (0.8%):
66,000 PCA Corp................................................. 2,751
--------
Construction (1.5%):
461,000 Matsushita E. Works...................................... 4,871
--------
Data Processing & Reproduction (1.1%):
56,000 Trans Cosmos............................................. 3,670
--------
Electrical & Electronic (5.3%):
39,400 Keyence.................................................. 4,545
79,300 Mabuchi Motor............................................ 4,935
368,000 Nikon Co................................................. 4,995
53,000 Rohm..................................................... 2,995
--------
17,470
--------
Electronic Components/Instruments (1.3%):
73,500 Hirose Electric.......................................... 4,233
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Pharmaceuticals (1.1%):
164,000 Santen Pharmaceutical.................................... $ 3,720
--------
Restaurants (0.7%):
55,000 Doutor Coffee............................................ 2,186
--------
Retail Stores/Catalog (1.7%):
218,000 Hankyu Department Stores................................. 3,233
86,000 Kato Denki............................................... 2,234
--------
5,467
--------
Retail--General Merchandise (1.3%):
50,000 Autobacs Seven Co........................................ 4,158
--------
Services (2.6%):
56,000 Nichii Gakkan Co. (b).................................... 2,627
84,000 Secom.................................................... 5,847
--------
8,474
--------
Total Japan 61,212
--------
MALAYSIA (2.1%):
Engineering (2.1%):
1,061,000 United Engineers Berhad.................................. 6,749
--------
MEXICO (1.7%):
Beverages & Tobacco (0.2%):
297,000 Economico Femsa.......................................... 694
--------
Building Products (0.4%):
360,000 Cementos De Mexico....................................... 1,290
--------
Conglomerates (0.7%):
440,000 Grupo Carso (b).......................................... 2,370
--------
Telecommunication (0.4%):
120,000 Grupo Televisa S.A....................................... 1,377
--------
Total Mexico 5,731
--------
NEW ZEALAND (1.9%):
Agriculture (0.5%):
600,000 Fernz Corp. Ltd.......................................... 1,601
--------
Consumer Goods & Services (1.4%):
1,568 Fisher & Paykel Industries............................... 4,756
--------
Total New Zealand 6,357
--------
PORTUGAL (0.9%):
Beverages & Tobacco (0.9%):
180,000 Unicer................................................... 3,015
--------
SWITZERLAND (8.6%):
Business Services (1.8%):
2,900 Societe General De Serveillance.......................... 5,765
--------
</TABLE>
Continued
60
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWITZERLAND, CONTINUED:
Engineering (1.4%):
260,750 Sandvik.................................................. $ 4,574
--------
Food Products & Services (1.5%):
4,600 Nestle................................................... 5,099
--------
Pharmaceuticals (3.9%):
163,500 Astra.................................................... 6,531
740 Roche.................................................... 6,104
--------
12,635
--------
Total Switzerland 28,073
--------
SINGAPORE (0.7%):
Diversified (0.7%):
982,000 Singapore Technologies Industries........................ 2,208
--------
THAILAND (1.3%):
Retail Stores/Catalog (0.2%):
217,000 Siam Makro (b)........................................... 799
--------
Telecommunications (1.1%):
200,000 Advanced Information Service............................. 3,533
--------
Total Thailand 4,332
--------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED STATES (6.3%):
Beverages & Tobacco (1.1%):
103,000 Buenos Aires Embotella.................................. $ 2,118
90,000 Quilmes Industrial SA................................... 1,413
--------
3,531
--------
Home Furnishings (1.8%):
127,380 Industrie Natuzzi....................................... 5,764
--------
Telecommunications (3.4%):
42,500 Indonesia Satellite (b)................................. 1,551
50,000 Newbridge Network....................................... 2,084
81,000 Telecommunicacoes Brasileiras........................... 3,852
45,100 Telecomunication Chile.................................. 3,735
--------
11,222
--------
Total United States 20,517
--------
Total Common Stocks 286,875
--------
INVESTMENT COMPANIES (12.0%):
14,616 Bank of California Money Market Fund.................... 14,616
9,706,358 Parkstone Prime Obligations Fund Institutional Shares... 9,706
15,000,000 Parkstone U.S. Government Obligations Fund Institutional
Shares................................................. 15,000
--------
Total Investment Companies 39,322
--------
Total (Cost--$287,453) $326,197
========
</TABLE>
- -------
Percentages indicated are based on net assets of $327,143.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $39,511
Unrealized depreciation....................................... (767)
-------
Net unrealized appreciation................................... $38,744
=======
</TABLE>
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACT CONTRACT/VALUE APPRECIATION DELIVERY
PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
--------- -------------- -------------- --------
<S> <C> <C> <C> <C>
Currency purchased:
Thai Baht.................... 25.200027 $4 $0 1/2/96
---
Payable for forward currency
contracts purchased......... $4
===
</TABLE>
See notes to financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (47.7%):
Automotive Finance (0.1%):
3,450 First Merchants Acceptance Corp. (b)....................... $ 64
2,750 Jayhawk Acceptance Corp. (b)............................... 25
-------
89
-------
Beverages & Tobacco (0.0%):
3,000 Quilmes Industrial SA (b).................................. 47
-------
Broadcasting & Cable (0.3%):
18,800 Tele-Communications, Class A (b)........................... 374
-------
Broadcasting & Publishing (0.6%):
19,500 British Sky Broadcasting-ADR............................... 734
-------
Business Services (2.4%):
8,300 Acxiom Corp. (b)........................................... 226
9,000 Alternative Resources Corp. (b)............................ 272
17,850 Ceridian Corp. (b)......................................... 736
5,850 Checkpoint Systems, Inc. (b)............................... 219
7,650 Cintas Corp. (b)........................................... 340
2,900 Fair Issac & Company, Inc. ................................ 75
11,000 Paychex, Inc. ............................................. 549
3,600 PMT Services, Inc. (b)..................................... 109
4,600 Peak Technologies Group, Inc. (b).......................... 144
5,000 U.S. Delivery Systems, Inc. (b)............................ 145
-------
2,815
-------
Computer Hardware (2.2%):
11,700 3 Com Corp. (b)............................................ 545
11,000 Cisco Systems, Inc. (b).................................... 821
10,050 Fore Systems, Inc. (b)..................................... 598
6,350 Micro Linear Corp. (b)..................................... 65
3,300 Premends Technology Corp. (b).............................. 87
12,600 Silicon Graphics, Inc. (b)................................. 347
3,500 Visioneer, Inc. (b)........................................ 78
-------
2,541
-------
Computer Software (6.5%):
5,850 Baan Co. (b)............................................... 265
4,000 Cambridge Technology Partners, Inc. (b).................... 230
4,750 Dendrite International, Inc. (b)........................... 86
4,500 Discreet Logic, Inc. (b)................................... 113
2,900 Eagle Point Software Corp. (b)............................. 62
23,843 First Data Corp............................................ 1,595
3,900 FTP Software, Inc. (b)..................................... 113
16,000 GT Interactive Software Corp. (b).......................... 224
13,000 Informix Corp. (b)......................................... 390
5,600 INSO Corp. (b)............................................. 238
5,600 Macromedia, Inc. (b)....................................... 293
7,950 McAfee Associates, Inc. (b)................................ 349
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Computer Software, continued:
6,350 Minnesota Educational Computing Corp. (b).................. $ 159
4,850 Mircosoft Corp. (b)........................................ 426
13,000 Netmanage, Inc. (b)........................................ 302
28,150 Oracle Corp. (b)........................................... 1,192
10,350 Parametric Technology Corp. (b)............................ 688
11,400 Peoplesoft, Inc. (b)....................................... 490
3,300 Project Software & Development, Inc. (b)................... 115
2,200 Sync Research, Inc. (b).................................... 100
5,700 Systemsoft Corp. (b)....................................... 64
-------
7,494
-------
Consumer Goods & Services (1.1%):
20,600 Gillette Co. .............................................. 1,073
6,600 Nine West Group, Inc. (b).................................. 248
-------
1,321
-------
Correctional Facilities (0.2%):
3,900 Corrections Corporation of America (b)..................... 145
3,200 Wackenhut Corrections Corp. (b)............................ 81
-------
226
-------
Distribution (0.1%):
4,000 Buenes Aires Embotellado, ADR.............................. 83
-------
Diversified (0.8%):
19,400 ALCO Standard Corp......................................... 885
-------
Education (0.0%):
700 Sylvan Learning Systems, Inc. (b).......................... 21
-------
Electrical & Electronics (0.8%):
4,250 Actel Corp. (b)............................................ 46
4,100 Altera Corp. (b)........................................... 204
3,900 Flextronics International, Ltd. (b)........................ 117
17,006 Molex, Inc................................................. 521
-------
888
-------
Entertainment (1.6%):
15,300 Carnival Cruise Lines...................................... 372
11,450 Mirage Resorts (b)......................................... 395
9,600 Regal Cinemas (b).......................................... 286
16,394 Viacom, Inc. Class B (b)................................... 777
-------
1,830
-------
Financial Services (3.9%):
4,200 AAMES Financial Corp. ..................................... 117
8,800 Concord EFS, Inc. (b)...................................... 372
20,800 Credit Acceptance Corp. (b)................................ 432
5,400 Federal National Mortgage Assoc............................ 670
</TABLE>
Continued
62
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
12,900 First USA, Inc. ........................................... $ 572
26,900 Green Tree Financial Corp.................................. 709
5,575 Imperial Credit Industries, Inc. (b)....................... 121
9,900 MBNA Corp.................................................. 365
7,800 Oxford Resources Corp., Class A (b)........................ 176
7,900 PMI Group, Inc. ........................................... 357
9,750 SunAmerica, Inc............................................ 463
6,300 United Cos. Financial Corp. ............................... 166
-------
4,520
-------
Funeral Services (0.6%):
15,400 Service Corp. International................................ 678
-------
Health Care (2.4%):
5,000 American Medical Response (b).............................. 162
3,200 Community Health Systems (b)............................... 114
2,300 Compdent Corp. (b)......................................... 95
500 HCIA, Inc. (b)............................................. 23
21,662 Health Management Associates (b)........................... 566
27,700 HEALTHSOUTH Corp. (b)...................................... 807
11,200 Manor Care................................................. 392
8,800 MedPartners/Mullikin, Inc. (b)............................. 290
4,400 Occusystems, Inc. (b)...................................... 88
5,750 Orthodontic Centers of America (b)......................... 277
-------
2,814
-------
Hotels & Lodging (1.2%):
15,650 Hospitality Francise Systems (b)........................... 1,279
2,500 Studio Plus Hotels, Inc. (b)............................... 64
-------
1,343
-------
Insurance (0.5%):
3,600 American Corp. (b)......................................... 95
5,300 American International Group............................... 490
-------
585
-------
Machinery & Equipment (0.3%):
3,100 Applied Materials (b)...................................... 122
3,800 KLA Instruments Corp. (b).................................. 99
5,600 Ultratech Stepper, Inc. (b)................................ 144
-------
365
-------
Manufacturing-Consumer Goods (0.6%):
13,600 Duracell................................................... 704
-------
Medical Equipment & Supplies (1.6%):
7,500 Gulf South Medical Supply (b).............................. 227
4,900 Henry Schein, Inc. (b)..................................... 145
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Medical Equipment & Supplies, continued
12,700 Idexx Laboratories, Inc. (b)............................... $ 597
10,950 Omnicare, Inc.............................................. 490
6,750 Phycor, Inc. (b)........................................... 341
2,300 Serlogicals Corp. (b)...................................... 38
-------
1,838
-------
Medical-Hospital Services (0.1%):
5,300 Total Renal Care Holdings, Inc. (b)........................ 156
-------
Office Equipment & Services (0.8%):
7,750 Danka Business Systems ADR................................. 287
5,000 Xerox Corp. ............................................... 685
-------
972
-------
Pharmaceuticals (1.6%)
7,550 Dura Pharmaceuticals (b)................................... 262
14,350 Merck & Company, Inc. ..................................... 944
3,150 Parexel International Corp. (b)............................ 105
4,200 Quintiles Transnational Corp. (b).......................... 172
6,950 Watson Pharmaceutical, Inc. (b)............................ 341
-------
1,824
-------
Photography (0.1%):
3,750 Pinnacle Systems, Inc. (b)................................. 93
-------
Radio & TV (0.5%):
5,500 Clear Channel Communication, Inc. (b)...................... 243
8,200 Infinity Broadcasting (b).................................. 305
-------
548
-------
Restaurants (0.5%):
6,400 Landry's Seafood Restaurants, Inc. (b)..................... 109
11,100 Lone Star Steakhouse & Saloon (b).......................... 426
-------
535
-------
Retail Stores/Catalog (5.0%):
11,200 Autozone, Inc. (b)......................................... 323
9,850 Barnes & Noble (b)......................................... 286
6,700 Books-A-Million, Inc. (b).................................. 86
3,200 CDW Computer Center, Inc. (b).............................. 130
29,800 CUC International, Inc. (b)................................ 1,017
3,400 Creative Computers, Inc. (b)............................... 62
7,600 Hollywood Entertainment Corp. (b).......................... 64
15,550 Home Depot, Inc............................................ 744
4,500 Just For Feet, Inc. (b).................................... 161
8,100 Men's Wearhouse (b)........................................ 209
8,900 Micro Warehouse, Inc. (b).................................. 385
19,375 Office Depot, Inc. (b)..................................... 383
</TABLE>
Continued
63
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail Stores/Catalog, continued:
4,150 Petco Animal Supplies, Inc. (b)............................ $ 121
15,275 Petsmart, Inc. (b)......................................... 474
1,700 Rexall Sundown, Inc. (b)................................... 37
11,500 Sunglass Hut International (b)............................. 273
9,900 Viking Office Products (b)................................. 460
18,600 Wal-mart Stores, Inc. (b).................................. 416
5,200 West Marine, Inc. (b)...................................... 163
-------
5,794
-------
Technology (2.0%):
2,200 Alantec Corp. (b).......................................... 128
2,300 C.P. Clare Corp. (b)....................................... 47
3,800 Electroglas, Inc. (b)...................................... 93
3,800 Electronics For Image, Inc. (b)............................ 166
20,050 LSI Logic Corp. (b)........................................ 657
16,250 Linear Technology Corp..................................... 638
5,700 Motorola, Inc. ............................................ 325
4,150 Sanmina Corp. (b).......................................... 215
-------
2,269
-------
Technology/Software (0.5%):
7,600 Computer Science (b)....................................... 534
-------
Telecommunications (1.1%):
9,100 Airtouch Communications, Inc. (b).......................... 257
1,600 Compania Telecomunicacion Chile, ADR (b) 133
15,100 LCI International, Inc. (b)................................ 310
1,500 PT Indosat (b)............................................. 55
3,000 Telecommunicacoes Brasleiras, ADR.......................... 142
7,000 Tellabs, Inc. (b).......................................... 259
4,700 Transaction Network Services (b)........................... 118
-------
1,274
-------
Wholesale Distribution (0.6%):
4,925 Brightpoint, Inc. (b)...................................... 70
11,200 Cardinal Health, Inc. ..................................... 613
3,800 Thompson PBE, Inc. (b)..................................... 53
-------
736
-------
FOREIGN STOCKS (6.9%):
AUSTRALIA (0.4%):
Beverages & Tobacco (0.1%):
60,000 Fosters Brewing Group (b).................................. 99
-------
Building Products (0.1%):
60,000 Pioneer International (b).................................. 155
-------
Diversified (0.1%):
11,395 Smith (Howard) Ltd. (b).................................... 54
-------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FOREIGN STOCKS, CONTINUED:
AUSTRALIA, CONTINUED:
Packaging (0.1%):
12,500 Amcor Ltd. (b)............................................. $ 88
-------
BRITAIN (0.9%):
Capital Goods (0.1%):
24,000 Powerscreen International PLC.............................. 144
-------
Electrical & Electronic (0.2%):
15,000 Farnell Electronics (b).................................... 167
-------
Environmental Services (0.0%):
10,000 Rentokil Group PLC (b)..................................... 52
-------
Food Products & Services (0.2%):
25,000 Compass Group (b).......................................... 190
-------
Manufacturing-Consumer Goods (0.2%):
40,000 Halna PLC (b).............................................. 109
60,000 Polypipe PLC............................................... 163
-------
272
-------
Media (0.2%):
18,000 Reuters.................................................... 165
-------
CANADA (0.1%):
Electronic Components & Instruments (0.0%):
1,000 Cinram Ltd. ............................................... 18
-------
Manufacturing-Consumer Goods (0.1%):
13,000 Bombardier, Class B........................................ 172
-------
Office Equipment & Services (0.0%):
2,500 Moore Corporation Ltd...................................... 47
-------
DENMARK (0.3%):
Food Products & Services (0.2%):
4,000 Danisco.................................................... 193
-------
Health Care (0.1%):
800 Novo-Nordisk (b)........................................... 110
-------
FINLAND (0.0%):
Retail Stores/Catalog (0.0%):
1,000 Stockman (b)............................................... 52
-------
FRANCE (0.8%):
Beverages & Tobacco (0.1%):
3,000 Seita (b).................................................. 109
-------
Consumer Goods & Services (0.4%):
2,000 BIC (b).................................................... 204
1,200 Hermes International S.A. (b).............................. 226
-------
430
-------
</TABLE>
Continued
64
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FOREIGN STOCKS, CONTINUED:
FRANCE, CONTINUED:
Retail Stores/Catalog (0.3%):
1,100 Castorama Dubois Investisse (b)............................ $ 180
1,100 Docks de France (b)........................................ 167
-------
347
-------
GERMANY (0.5%):
Engineering (0.1%):
500 Mannesmann (b)............................................. 159
-------
Machinery & Equipment (0.2%):
300 Linde AG (b)............................................... 178
-------
Pharmaceuticals (0.1%):
2,000 Schering AG (b)............................................ 133
-------
Retail Stores/Catalog (0.1%):
4,000 Douglass Holdings (b)...................................... 141
-------
HOLLAND (0.5%):
Beverages & Tobacco (0.1%):
4,500 Grolsch (b)................................................ 157
-------
Broadcasting & Publishing (0.2%):
13,000 Elsevier................................................... 174
-------
Distribution (0.1%):
1,900 Hagemeyer (b).............................................. 99
-------
Office Equipment & Services (0.1%):
1,750 OCE Van DeGrinten.......................................... 107
-------
HONG KONG (0.1%):
Electrical & Electronic (0.0%):
25,000 Johnson Electric Holdings (g).............................. 45
-------
Retail Stores/Catalog (0.1%):
120,000 Giordano International (b)................................. 102
-------
INDONESIA (0.1%):
Tobacco (0.1%):
12,000 Hanjaya Mandala Sampoerma (b).............................. 125
-------
ITALY (0.1%):
Manufacturing-Capital Goods (0.1%):
40,000 Sasib S.P.A. (b)........................................... 98
-------
JAPAN (1.7%):
Chemicals (0.1%):
6,000 Kurita Water Industries (b)................................ 160
-------
Computer Software (0.2%):
2,000 PCA Corp. (b).............................................. 83
2,000 Trans Cosmos............................................... 131
-------
214
-------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FOREIGN STOCKS, CONTINUED:
JAPAN, CONTINUED:
Electrical & Electronic (0.6%):
1,000 Keyence Corp............................................... $ 115
2,000 Nabuchi Motor Co. Ltd. (b)................................. 124
15,000 Matsushita Electric Works.................................. 159
14,000 Nikon Corp. (b)............................................ 190
1,000 Rohm....................................................... 57
-------
645
-------
Electronic Components/Instruments (0.1%):
2,100 Hirose Electric............................................ 121
-------
Pharmaceuticals (0.1%):
6,000 Santen Pharmaceutical...................................... 136
-------
Restaurants (0.1%):
4,000 Doutor Coffee (b).......................................... 159
-------
Retail Stores/Catalog (0.1%):
6,000 Hankyu Department Stores................................... 89
-------
Retail/General Merchandise (0.2%):
1,600 Autobacs Seven Co. Ltd. (b)................................ 133
3,000 Kato Denki (b)............................................. 78
-------
211
-------
Services (0.2%):
2,000 Nichii Gakkan Co. (b)...................................... 94
2,000 Secom Co. Ltd. (b)......................................... 139
-------
233
-------
MALAYSIA (0.1%):
Engineering (0.1%):
27,000 United Engineers Berhad (b)................................ 172
-------
MEXICO (0.1%):
Beverages & Tobacco (0.0%):
10,000 Fomento Economico Mexicano FEMSA (b)....................... 23
-------
Building products (0.0%):
11,000 Cementos De Mexico (b)..................................... 39
-------
Diversified (0.1%):
14,000 Grupo Carso (b)............................................ 75
-------
Telecommunications (0.0%):
4,000 Grupo Televisa (b)......................................... 45
-------
NEW ZEALAND (0.1%):
Consumer Goods & Services (0.1%):
51,095 Fisher & Paykel Industries................................. 155
-------
PORTUGAL (0.1%):
Beverages & Tobacco (0.1%):
6,000 Unicer (b)................................................. 100
-------
</TABLE>
Continued
65
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FOREIGN STOCKS, CONTINUED:
SINGAPORE (0.1%):
Diversified (0.1%):
29,000 Singapore Technologies Industrial (b)...................... $ 66
-------
SWEDEN (0.2%):
Pharmaceuticals (0.2%):
5,500 Astra (b).................................................. 220
-------
SWITZERLAND (0.5%):
Business Services (0.2%):
100 Societe General de Surveillance (b)........................ 199
-------
Food Products & Services (0.1%):
150 Nestle (b)................................................. 166
-------
Pharmaceuticals (0.2%):
30 Roche (b).................................................. 238
-------
THAILAND (0.2%):
Retail Stores/Catalog (0.1%):
16,000 Siam Makro (b)............................................. 59
-------
Telecommunications-Services & Equipment (0.1%):
4,000 Advanced Information Service (b)........................... 71
-------
Total Foreign Stocks 54,911
-------
CORPORATE BONDS (5.7%):
Automotive (0.2%):
250,000 Hertz Corp., 10.13%, 3/1/97................................ 263
-------
Automotive Finance (0.6%):
600,000 General Motors Acceptance Corp.,
5.50%, 10/15.............................................. 689
-------
Banking (0.5%):
500,000 Continental Bank N.A., 11.25%, 7/1/01...................... 560
-------
Electric Utilities (0.9%):
950,000 Tenaga Nasional Berhad, 7.50%, 11/1/25..................... 994
-------
Financial Services (1.7%):
545,000 Banque Paribas, 8.35%, 6/15/07............................. 615
500,000 Dean Witter Discover, 6.00%, 3/1/98........................ 503
850,000 Lehman Brothers Holdings, 6.90%, 7/15/99................... 863
-------
1,981
-------
Industrial Goods & Services (0.4%):
500,000 AB Electrolux, 7.00%, 1/29/98.............................. 512
-------
Telecommunications (0.3%):
300,000 Southwestern Bell Capital, 6.60%, 11/27/06................. 308
-------
Transportation & Shipping (1.1%):
1,000,000 United Air Lines Corp., 10.67%, 5/1/04..................... 1,211
-------
Total Corporate Bonds 6,518
-------
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (6.6%):
Federal Home Loan Mortgage Corp.
84,657 8.25%, 8/15/19............................................ $ 86
87,458 9.00%, 5/15/20............................................ 92
285,074 9.50%, 10/1/20............................................ 302
Federal National Mortgage Assoc.
211,490 6.50%, 3/25/09............................................ 213
2,003,956 6.00%, 6/1/09............................................. 1,987
281,910 9.00%, 8/1/09............................................. 297
207,516 8.25%, 7/1/17............................................. 215
150,000 6.50%, 5/25/20............................................ 150
277,264 9.00%, 7/25/20............................................ 294
1,372,944 6.50%, 12/1/23............................................ 1,357
Governmental National Mortgage Assoc.
201,669 8.00%, 6/15/17............................................ 210
186,033 8.00%, 5/15/23............................................ 194
137,819 8.00%, 7/15/23............................................ 144
635,835 8.00%, 10/15/24........................................... 662
1,166,707 6.00%, 7/20/25............................................ 1,178
Government Trust Certificate
250,000 9.25%, 11/15/01........................................... 277
-------
Total U.S. Government Agencies 7,658
-------
U.S. TREASURY BONDS (9.9%):
3,000,000 10.75%, 2/15/03........................................... 3,915
3,200,000 8.75%, 8/15/20............................................ 4,291
2,060,000 7.63%, 2/15/21............................................ 2,517
500,000 8.13%, 8/15/21............................................ 632
-------
Total U.S. Treasury Bonds 11,355
-------
U.S. TREASURY NOTES (20.6%):
1,000,000 4.63%, 2/15/96............................................ 999
1,675,000 7.00%, 9/30/96............................................ 1,696
3,700,000 6.13%, 7/31/00............................................ 3,809
10,050,000 6.25%, 8/31/00............................................ 10,399
250,000 6.25%, 2/15/03............................................ 261
5,500,000 7.25%, 8/15/04............................................ 6,118
350,000 5.88%, 11/15/05........................................... 358
-------
Total U.S. Treasury Notes 23,640
-------
U.S. TREASURY STRIP (1.0%):
1,150,000 0.00%, 2/15/96............................................ 1,143
-------
INVESTMENT COMPANIES (1.6%):
1,827,110 Parkstone Prime Obligations Money Market Fund............. 1,827
-------
Total Investment Companies 1,827
-------
Total Investments, at value 107,052
-------
</TABLE>
Continued
66
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Balanced Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (6.1%):
6,989,000 Goldman Sachs, 5.95%, 1/2/96*** .......................... $ 6,989
--------
Total Repurchase Agreements 6,989
--------
Total (Cost--$98,348) $114,041
========
</TABLE>
- -------
Percentages indicated are based on net assets of $115,010.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of
approximately $7. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $15,826
Unrealized depreciation....................................... (140)
-------
Net unrealized depreciation................................... $15,686
=======
</TABLE>
(b) Represents non-income producing securities.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
CONTRACT CONTRACT/VALUE APPRECIATION DELIVERY
PRICE (U.S. DOLLARS) (DEPRECIATION) DATE
---------- -------------- -------------- --------
<S> <C> <C> <C> <C>
Currency purchased Thailand
Baht........................ 25.199.957 $4 $0 1/2/96
---
Payable for forward currency
contracts purchased......... $4
===
</TABLE>
See notes to financial statements.
67
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Limited Maturity Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (49.4%):
Aerospace (0.6%):
1,000 British Aerospace Finance, 7.50%, 6/11/97................ $ 1,021
--------
Airline Leasing (2.1%):
3,325 Alps, 7.15%, 9/15/04..................................... 3,381
--------
Asset-Backed Securities (2.0%):
269 EQ Asset Trust, 5.00%, 10/15/08(c)....................... 275
2,000 MBNA, 6.31%*, 12/15/00**................................. 1,999
824 Merrill Lynch Mortgage Investors Inc., 9.80%, 10/15/08... 843
--------
3,117
--------
Automotive Finance (2.4%):
3,815 USAA Auto Loan Grantor Trust 1993 -1A, 3.90%, 3/15/99.... 3,804
--------
Banking (1.9%):
2,000 First U.S.A. Bank, 5.75%, 1/15/99........................ 1,990
1,000 Wachovia Bank Notes, 6.70%, 4/14/99...................... 1,029
--------
3,019
--------
Banking (Foreign) (1.4%):
2,000 Kansallis-Osake, 8.65%, 12/29/49......................... 2,145
--------
Chemicals (1.3%):
2,000 DuPont Corp., 8.45%, 10/15/96............................ 2,048
--------
Electric Utility (6.2%):
2,000 Hawaiian Electric, 5.15%, 12/1/96........................ 1,993
1,750 Iberdola Corp., 7.50%, 10/1/02........................... 1,886
2,675 National Rural Utilities, 9.64%, 5/19/97................. 2,819
3,000 Southern California Edison, 5.90%, 1/15/97............... 3,008
--------
9,706
--------
Financial Services (20.1%):
3,000 American Express Co., 11.63%, 12/12/00................... 3,381
3,000 Barclays, 11.63%, 5/1/03................................. 3,364
3,000 Chrysler Financial Corp., 6.12%, 11/30/98................ 3,022
4,060 Commercial Credit, 10.00%, 5/1/99........................ 4,547
3,000 Fletcher Challenge, 9.25%, 5/15/97....................... 3,139
1,778 Greentree Financial Corp., 7.25%, 7/15/05(d)............. 1,807
1,520 Greentree Financial Corp., 5.60%, 4/15/19................ 1,520
1,675 Greentree Financial Corp., 5.90%, 1/15/21................ 1,673
1,340 Greentree Securitized Net Interest Margin Trust, 6.90%,
2/15/04................................................. 1,350
2,000 Mony Funding Inc., 8.25%, 10/29/96....................... 2,038
5,400 Transamerica Financial, 8.75%, 10/1/99................... 5,900
--------
31,741
--------
Foreign Agencies (0.6%):
1,000 Export Import Bank of Korea, 7.85%, 11/1/96.............. 1,016
--------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Homebuilding/Related Financial Services (1.9%):
2,924 LB Mortgage Trust, 8.00%, 3/20/99......................... $ 3,018
--------
Industrial Goods & Services (5.6%):
6,000 Electrolux, 7.00%, 1/29/98................................ 6,143
2,500 WMX Technologies, 8.13%, 2/1/98........................... 2,619
--------
8,762
--------
Insurance (0.8%):
1,200 CNA Financial, 8.63%, 3/1/96.............................. 1,204
--------
Leasing (1.2%):
1,750 Hertz Corp., 10.13%, 3/1/97............................... 1,838
--------
Oil & Exploration Products & Services (1.3%):
2,000 Burmah Castrol B.V., 7.00%, 12/15/97...................... 2,040
--------
Total Corporate Bonds 77,860
--------
FOREIGN GOVERNMENTS (1.4%):
2,000 Tokyo Metro Government, 10.38%, 10/20/97.................. 2,165
--------
Total Foreign Governments 2,165
--------
U.S. GOVERNMENT AGENCIES (17.8%):
Federal Home Loan Bank:
15,000 6.86% (b), 5/17/01........................................ 15,055
Federal Home Loan Mortgage Corp.:
10,000 7.69%, 12/16/96........................................... 10,212
Federal National Mortgage Assoc.:
12 14.00%, 7/1/10............................................ 15
9 14.00%, 5/1/11............................................ 11
138 14.00%, 7/1/11............................................ 169
4 14.00%, 10/1/12........................................... 5
30 14.00%, 11/1/12........................................... 36
21 14.00%, 11/1/12........................................... 26
45 14.00%, 12/1/12........................................... 55
35 14.00%, 1/1/13............................................ 43
6 14.00%, 7/1/14............................................ 7
59 14.00%, 8/1/14............................................ 71
443 14.00%, 9/1/14............................................ 541
136 14.00%, 9/1/14............................................ 166
141 14.00%, 10/1/14........................................... 173
26 14.00%, 10/1/14........................................... 31
56 14.00%, 11/1/14........................................... 68
1,400 6.50%, 5/25/20............................................ 1,400
--------
Total U.S. Government Agencies 28,084
--------
</TABLE>
Continued
68
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Limited Maturity Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES (29.8%):
1,250 7.25%, 11/30/96........................................... $ 1,272
12,450 9.13%, 5/15/99............................................ 13,896
30,675 6.25%, 8/31/00............................................ 31,740
--------
Total U.S. Treasury Notes 46,908
--------
Total Investments, at value 155,017
--------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (0.0%):
65 Goldman Sachs, 5.95%, 1/2/96***........................... $ 65
--------
Total Repurchase Agreements 65
--------
Total (Cost-$153,850)(a) $155,082
========
</TABLE>
- -------
Percentages indicated are based on net assets of $157,452.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $1,955
Unrealized depreciation........................................ (723)
------
Net unrealized appreciation.................................... $1,232
======
</TABLE>
(b) Interest rate increases to 7.00% on March 15, 1996.
(c) Represents a restricted security, purchased under rule 144A, which is
exempt from registration under the Securities Act of 1933, as amended.
(d) Collateralized mortgage obligations.
* Floating rate demand notes are securities with yields that vary with a
designated market index or market rate. These securities are payable on
the date of demand. The rate reflected on the schedule of portfolio
investments is the effective rate at December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase
of the investment within variable time periods of less than one year.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
69
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Intermediate Government Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (46.7%):
Federal Home Administration Project Loans:
3,131 7.43%, 7/1/21............................................. $ 3,380
Federal Home Loan Bank:
25,000 6.86% (b), 5/17/01........................................ 25,091
Federal Home Loan Mortgage Corp.:
179 6.50%, 3/1/97............................................. 178
17,800 5.60%, 3/1/99............................................. 17,722
1,564 8.00%, 11/1/09............................................ 1,611
5,000 6.25%, 10/15/22........................................... 4,933
Federal National Mortgage Assoc.:
3,500 5.90%, 7/6/00............................................. 3,544
10,000 6.32%, 8/3/00............................................. 10,279
13,000 6.44%, 6/21/05............................................ 13,506
5,000 6.85%, 8/22/05............................................ 5,350
2,115 6.50%, 3/25/09............................................ 2,128
6,535 6.00%, 6/1/09............................................. 6,479
2,169 9.00%, 8/1/09............................................. 2,285
5,062 13.0%, 8/1/15............................................. 6,024
2,075 8.25%, 7/1/17............................................. 2,153
2,000 6.50%, 5/25/20............................................ 2,001
1,109 9.00%, 7/25/20............................................ 1,175
Government National Mortgage Assoc.:
4,861 6.00%, 7/20/25............................................ 4,910
Government Trust Certificate:
7,500 9.25%, 11/15/01........................................... 8,301
7,500 6.28%, 6/15/04............................................ 7,649
--------
Total U.S. Government Agencies 128,699
--------
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES (41.4%):
16,650 6.88%, 4/30/97........................................... $ 17,004
21,490 7.88%, 4/15/98........................................... 22,702
44,025 6.25%, 8/31/00........................................... 45,554
10,000 5.75%, 8/15/03........................................... 10,128
16,850 7.25%, 8/15/04........................................... 18,743
--------
Total U.S. Treasury Notes 114,131
--------
U.S. TREASURY STRIP (10.3%):
28,500,000 2/15/96.................................................. 28,316
--------
Total U.S. Treasury STRIP 28,316
--------
Total Investments, at value 271,146
--------
REPURCHASE AGREEMENTS (0.2%):
514,000 Goldman Sachs, 5.95%, 1/2/96***.......................... 514
--------
Total Repurchase Agreements 514
--------
Total (Cost--$266,426)(a) $271,660
========
</TABLE>
- -------
Percentages Indicated are based on net assets of $275,669.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax by amount of losses recognized for financial
reporting in excess of federal income tax reporting of approximately $3.
Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $5,358
Unrealized depreciation........................................ (127)
------
Net unrealized appreciation.................................... $5,231
======
</TABLE>
(b) Interest rate increase to 7.00% on May 17, 1996.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
70
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (0.8%):
624 Prudential Bache, Trust, Series 12, Class F 8.49%,
10/20/20.................................................. $ 702
819 Cityfed Mortgage Trust, 10.00%, 1/1/18..................... 819
--------
Total Corporate Bonds 1,521
--------
U.S. GOVERNMENT AGENCIES (67.4%):
Government National Mortgage Assoc.:
53 9.00%, 10/15/04............................................ 56
12 9.00%, 10/20/04............................................ 12
69 9.00%, 1/15/05............................................. 78
97 9.00%, 3/15/05............................................. 103
133 9.00%, 9/15/08............................................. 141
198 9.00%, 10/15/08............................................ 210
43 9.00%, 11/15/08............................................ 45
389 9.00%, 12/15/08............................................ 412
45 9.00%, 1/15/09............................................. 47
59 9.00%, 2/15/09............................................. 63
188 9.00%, 3/15/09............................................. 199
380 9.00%, 5/15/09............................................. 403
74 9.00%, 6/15/09............................................. 78
10 9.50%, 11/20/01............................................ 11
362 9.50%, 6/15/09............................................. 389
253 9.50%, 7/15/09............................................. 272
416 9.50%, 8/15/09............................................. 446
379 9.50%, 9/15/09............................................. 406
688 9.50%, 10/15/09............................................ 739
378 9.50%, 11/15/09............................................ 405
87 9.50%, 7/15/13............................................. 93
11 9.50%, 11/15/15............................................ 12
157 9.50%, 2/15/16............................................. 168
193 9.50%, 3/15/16............................................. 207
745 9.50%, 4/15/16............................................. 800
1,063 9.50%, 5/15/16............................................. 1,142
646 9.50%, 6/15/16............................................. 694
269 9.50%, 7/15/16............................................. 289
566 9.50%, 8/15/16............................................. 608
469 9.50%, 9/15/16............................................. 503
108 9.50%, 10/15/16............................................ 116
158 9.50%, 11/15/16............................................ 170
149 9.50%, 12/15/16............................................ 160
295 9.50%, 1/15/17............................................. 316
95 9.50%, 2/15/17............................................. 102
123 9.50%, 3/15/17............................................. 132
125 9.50%, 4/15/17............................................. 135
213 9.50%, 6/15/17............................................. 228
223 9.50%, 7/15/17............................................. 239
96 9.50%, 8/15/17............................................. 102
812 9.50%, 9/15/17............................................. 871
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
330 9.50%, 10/15/17............................................ $ 353
25 9.50%, 12/15/17............................................ 26
57 9.50%, 1/15/18............................................. 61
18 9.50%, 2/15/18............................................. 19
252 9.50%, 4/15/18............................................. 270
287 9.50%, 6/15/18............................................. 309
266 9.50%, 7/15/18............................................. 286
68 9.50%, 8/15/18............................................. 73
186 9.50%, 9/15/18............................................. 199
36 9.50%, 11/15/18............................................ 38
229 9.50%, 12/15/18............................................ 244
195 9.50%, 1/15/19............................................. 209
288 9.50%, 2/15/19............................................. 309
67 9.50%, 3/15/19............................................. 72
123 9.50%, 4/15/19............................................. 132
82 9.50%, 11/15/19............................................ 88
87 9.50%, 3/15/20............................................. 93
189 9.50%, 5/15/20............................................. 202
118 9.50%, 6/15/20............................................. 126
90 9.50%, 8/15/20............................................. 97
107 9.50%, 10/15/20............................................ 115
63 9.50%, 11/15/20............................................ 67
1,202 9.50%, 4/15/21............................................. 1,290
151 9.50%, 5/15/21............................................. 162
65 9.50%, 6/15/21............................................. 70
84 9.50%, 7/15/21............................................. 90
179 10.00%, 9/20/00............................................ 194
28 10.00%, 12/15/00........................................... 30
19 10.00%, 1/15/01............................................ 20
14 10.00%, 3/15/01............................................ 15
28 10.00%, 1/15/03............................................ 30
170 10.00%, 3/15/04............................................ 180
107 10.00%, 4/15/04............................................ 114
624 10.00%, 5/15/04............................................ 660
314 10.00%, 6/15/04............................................ 333
143 10.00%, 7/15/04............................................ 152
267 10.00%, 7/15/06............................................ 283
153 10.25%, 2/15/01............................................ 163
53 10.25%, 4/15/01............................................ 57
28 10.50%, 12/15/97........................................... 29
37 10.50%, 3/15/98............................................ 39
52 10.50%, 4/15/98............................................ 56
80 10.50%, 5/15/98............................................ 85
78 10.50%, 6/15/98............................................ 82
36 10.50%, 8/15/98............................................ 38
23 10.50%, 2/15/99............................................ 24
11 10.50%, 3/15/99............................................ 11
</TABLE>
Continued
71
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
46 10.50%, 9/15/00............................................ $ 49
18 10.50%, 10/15/00........................................... 19
6 10.50%, 1/15/01............................................ 6
60 10.50%, 2/15/01............................................ 63
64 10.50%, 8/15/01............................................ 68
22 10.75%, 1/15/98............................................ 23
17 10.75%, 7/15/98............................................ 19
49 10.75%, 9/15/98............................................ 53
16 11.00%, 12/15/97........................................... 17
51 11.00%, 1/15/98............................................ 55
9 11.00%, 2/15/98............................................ 10
33 11.00%, 4/15/98............................................ 35
127 11.00%, 11/15/98........................................... 136
45 11.00%, 12/15/98........................................... 48
40 11.00%, 4/15/00............................................ 42
267 11.00%, 5/15/00............................................ 285
234 11.00%, 6/15/00............................................ 250
164 11.00%, 9/15/00............................................ 176
9 11.00%, 10/15/00........................................... 9
117 11.00%, 11/15/00........................................... 125
165 11.00%, 12/15/00........................................... 176
321 11.00%, 1/15/01............................................ 344
202 11.00%, 3/15/04............................................ 218
218 11.00%, 8/15/04............................................ 236
322 11.00%, 5/20/19............................................ 355
0 11.25%, 2/15/96............................................ 0
14 11.25%, 5/15/98............................................ 15
48 11.25%, 7/15/98............................................ 52
52 11.50%, 1/15/99............................................ 56
17 11.50%, 7/15/99............................................ 19
66 11.50%, 9/15/99............................................ 72
59 11.50%, 2/15/00............................................ 64
7 11.50%, 3/15/00............................................ 7
12 11.50%, 4/15/00............................................ 13
160 11.50%, 5/15/00............................................ 173
2 11.50%, 6/15/00............................................ 2
37 11.50%, 7/15/00............................................ 40
41 11.50%, 8/15/00............................................ 44
24 11.50%, 12/15/00........................................... 27
145 11.50%, 6/20/04............................................ 160
24 11.50%, 3/15/11............................................ 28
26 11.50%, 4/15/13............................................ 29
59 11.50%, 6/15/13............................................ 66
33 11.50%, 8/15/13............................................ 38
60 11.50%, 9/20/13............................................ 66
3 11.50%, 10/20/13........................................... 3
5 11.50%, 11/20/13........................................... 6
73 11.50%, 8/15/14............................................ 83
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
31 11.50%, 10/15/14........................................... $ 35
84 11.50%, 5/15/15............................................ 95
32 11.50%, 6/20/15............................................ 35
16 11.50%, 12/15/15........................................... 18
154 11.50%, 4/20/19............................................ 170
127 11.50%, 5/20/19............................................ 140
90 11.50%, 10/15/99........................................... 97
41 11.75%, 10/15/14........................................... 45
41 11.75%, 12/15/97........................................... 45
154 11.75%, 4/15/99............................................ 171
359 11.75%, 5/15/99............................................ 398
2 12.00%, 5/20/99............................................ 2
32 12.00%, 7/1/99............................................. 36
7 12.00%, 8/20/99............................................ 17
16 12.00%, 5/15/00............................................ 17
27 12.00%, 6/15/00............................................ 122
74 12.00%, 6/20/00............................................ 82
85 12.00%, 7/20/00............................................ 94
82 12.00%, 8/20/00............................................ 91
32 12.00%, 1/15/12............................................ 37
49 12.00%, 4/15/12............................................ 56
114 12.00%, 8/15/12............................................ 129
141 12.00%, 11/15/12........................................... 163
295 12.00%, 12/15/12........................................... 341
125 12.00%, 1/15/13............................................ 144
123 12.00%, 2/15/13............................................ 142
132 12.00%, 8/15/13............................................ 151
161 12.00%, 9/15/13............................................ 181
79 12.00%, 11/15/13........................................... 92
5 12.00%, 12/15/13........................................... 5
94 12.00%, 1/15/14............................................ 108
40 12.00%, 2/15/14............................................ 46
281 12.00%, 3/15/14............................................ 325
25 12.00%, 4/15/14............................................ 29
113 12.00%, 4/20/14............................................ 125
116 12.00%, 5/15/14............................................ 135
55 12.00%, 6/15/14............................................ 64
186 12.00%, 1/15/15............................................ 215
299 12.00%, 2/15/15............................................ 346
191 12.00%, 3/15/15............................................ 221
333 12.00%, 4/15/15............................................ 384
528 12.00%, 5/15/15............................................ 610
486 12.00%, 6/15/15............................................ 562
215 12.00%, 7/15/15............................................ 248
94 12.00%, 8/15/15............................................ 108
121 12.00%, 9/15/15............................................ 140
65 12.00%, 10/15/15........................................... 75
35 12.00%, 5/15/18............................................ 40
</TABLE>
Continued
72
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
108 12.25%, 1/20/14............................................ $ 120
69 12.50%, 12/15/99........................................... 75
15 12.50%, 4/1/10............................................. 18
147 12.50%, 4/15/10............................................ 173
297 12.50%, 5/15/10............................................ 350
286 12.50%, 6/15/10............................................ 335
3 12.50%, 7/15/10............................................ 51
21 12.50%, 8/15/10............................................ 23
135 12.50%, 11/15/10........................................... 160
354 12.50%, 12/15/10........................................... 417
66 12.50%, 1/15/11............................................ 76
2 12.50%, 2/15/11............................................ 2
30 12.50%, 3/15/11............................................ 35
0 12.50%, 8/15/11............................................ 0
6 12.50%, 4/15/12............................................ 7
33 12.50%, 3/15/13............................................ 38
34 12.50%, 10/1/13............................................ 40
307 12.50%, 10/15/13........................................... 359
48 12.50%, 10/20/13........................................... 55
33 12.50%, 11/1/13............................................ 39
182 12.50%, 11/15/13........................................... 213
52 12.50%, 11/20/13........................................... 58
45 12.50%, 12/1/13............................................ 53
134 12.50%, 12/15/13........................................... 156
64 12.50%, 12/20/13........................................... 72
31 12.50%, 1/1/14............................................. 37
154 12.50%, 1/15/14............................................ 180
67 12.50%, 3/15/14............................................ 79
116 12.50%, 4/15/14............................................ 136
43 12.50%, 4/20/14............................................ 48
137 12.50%, 5/1/14............................................. 161
441 12.50%, 5/15/14............................................ 516
68 12.50%, 6/1/14............................................. 80
605 12.50%, 6/15/14............................................ 702
94 12.50%, 6/20/14............................................ 106
31 12.50%, 7/1/14............................................. 36
387 12.50%, 7/15/14............................................ 456
125 12.50%, 7/20/14............................................ 140
23 12.50%, 8/15/14............................................ 26
40 12.50%, 8/20/14............................................ 44
62 12.50%, 9/1/14............................................. 74
8 12.50%, 9/20/14............................................ 9
57 12.50%, 10/1/14............................................ 66
29 12.50%, 10/15/14........................................... 34
61 12.50%, 10/20/14........................................... 68
42 12.50%, 11/15/14........................................... 49
37 12.50%, 11/20/14........................................... 42
39 12.50%, 12/1/14............................................ 45
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
191 12.50%, 12/15/14........................................... $ 223
87 12.50%, 12/20/14........................................... 98
146 12.50%, 1/1/15............................................. 171
354 12.50%, 1/15/15............................................ 413
14 12.50%, 2/1/15............................................. 16
330 12.50%, 2/15/15............................................ 384
120 12.50%, 3/15/15............................................ 142
298 12.50%, 4/15/15............................................ 349
23 12.50%, 5/1/15............................................. 27
55 12.50%, 5/15/15............................................ 65
149 12.50%, 5/20/15............................................ 168
93 12.50%, 6/15/15............................................ 108
75 12.50%, 6/20/15............................................ 84
25 12.50%, 7/1/15............................................. 29
70 12.50%, 7/20/15............................................ 78
71 12.50%, 9/20/15............................................ 80
153 12.50%, 10/15/15........................................... 179
35 12.50%, 11/20/15........................................... 40
89 12.50%, 1/20/16............................................ 100
6 12.75%, 2/15/00............................................ 7
116 12.75%, 9/20/13............................................ 130
10 12.75%, 11/15/13........................................... 11
249 12.75%, 11/20/13........................................... 281
13 12.75%, 12/20/13........................................... 15
1 12.75%, 2/20/14............................................ 2
48 12.75%, 3/20/14............................................ 54
55 12.75%, 7/15/14............................................ 62
3 12.75%, 8/20/14............................................ 4
7 12.75%, 9/20/14............................................ 8
3 12.75%, 10/20/14........................................... 4
99 12.75%, 12/20/14........................................... 111
2 12.75%, 7/20/15............................................ 3
2 13.00%, 10/15/99........................................... 2
35 13.00%, 7/15/04............................................ 41
32 13.00%, 11/15/10........................................... 37
161 13.00%, 12/15/10........................................... 180
8 13.00%, 1/1/11............................................. 9
148 13.00%, 1/15/11............................................ 176
27 13.00%, 2/1/11............................................. 32
310 13.00%, 2/15/11............................................ 367
165 13.00%, 3/15/11............................................ 196
29 13.00%, 4/1/11............................................. 35
378 13.00%, 4/15/11............................................ 447
7 13.00%, 5/15/11............................................ 8
5 13.00%, 8/15/11............................................ 6
10 13.00%, 10/15/11........................................... 11
150 13.00%, 1/15/12............................................ 178
45 13.00%, 2/15/12............................................ 54
</TABLE>
Continued
73
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
14 13.00%, 5/15/12............................................ $ 17
8 13.00%, 6/15/12............................................ 9
18 13.00%, 7/15/12............................................ 22
1 13.00%, 8/15/12............................................ 1
14 13.00%, 9/15/12............................................ 16
51 13.00%, 10/15/12........................................... 60
47 13.00%, 11/1/12............................................ 56
72 13.00%, 11/15/12........................................... 86
97 13.00%, 12/1/12............................................ 116
7 13.00%, 12/15/12........................................... 9
45 13.00%, 9/1/13............................................. 53
187 13.00%, 9/15/13............................................ 220
67 13.00%, 10/1/13............................................ 79
217 13.00%, 10/15/13........................................... 258
26 13.00%, 6/1/14............................................. 31
67 13.00%, 6/15/14............................................ 80
249 13.00%, 7/15/14............................................ 291
4 13.00%, 8/1/14............................................. 4
222 13.00%, 8/15/14............................................ 255
89 13.00%, 9/15/14............................................ 103
10 13.00%, 10/1/14............................................ 12
372 13.00%, 10/15/14........................................... 429
125 13.00%, 10/20/14........................................... 142
5 13.00%, 11/1/14............................................ 5
71 13.00%, 11/15/14........................................... 84
8 13.00%, 12/1/14............................................ 10
139 13.00%, 12/15/14........................................... 164
167 13.00%, 12/20/14........................................... 189
87 13.00%, 1/1/15............................................. 103
34 13.00%, 1/15/15............................................ 40
117 13.00%, 6/15/15............................................ 139
21 13.00%, 6/20/15............................................ 24
23 13.00%, 8/1/15............................................. 26
47 13.00%, 3/15/16............................................ 56
48 13.25%, 9/20/13............................................ 55
3 13.25%, 1/20/15............................................ 4
462 13.50%, 5/15/10............................................ 557
138 13.50%, 6/15/10............................................ 161
180 13.50%, 7/15/10............................................ 218
36 13.50%, 8/15/10............................................ 44
60 13.50%, 9/15/10............................................ 73
96 13.50%, 4/15/11............................................ 115
604 13.50%, 5/15/11............................................ 725
13 13.50%, 8/15/11............................................ 16
14 13.50%, 9/15/11............................................ 17
20 13.50%, 2/15/12............................................ 24
250 13.50%, 10/15/12........................................... 302
373 13.50%, 11/15/12........................................... 449
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
41 13.50%, 12/15/12........................................... $ 50
82 13.50%, 7/15/14............................................ 97
3 13.50%, 7/20/14............................................ 3
498 13.50%, 8/15/14............................................ 599
7 13.50%, 8/20/14............................................ 8
49 13.50%, 9/1/14............................................. 55
633 13.50%, 9/15/14............................................ 761
83 13.50%, 9/20/14............................................ 94
225 13.50%, 10/15/14........................................... 270
124 13.50%, 10/20/14........................................... 141
38 13.50%, 11/1/14............................................ 43
130 13.50%, 11/15/14........................................... 157
45 13.50%, 11/20/14........................................... 50
42 13.50%, 12/15/14........................................... 52
12 13.50%, 12/20/14........................................... 13
27 13.50%, 1/20/15............................................ 30
52 13.50%, 2/15/15............................................ 62
17 13.50%, 3/20/15............................................ 19
32 13.50%, 4/15/15............................................ 39
83 13.50%, 4/20/15............................................ 94
61 13.50%, 5/20/15............................................ 70
32 13.50%, 6/20/15............................................ 36
3 13.75%, 2/15/97............................................ 3
426 14.00%, 5/15/11............................................ 513
1975 14.00%, 6/15/11............................................ 2,409
336 14.00%, 7/15/11............................................ 408
23 14.00%, 9/15/11............................................ 28
31 14.00%, 11/15/11........................................... 37
69 14.00%, 1/15/12............................................ 85
39 14.00%, 2/15/12............................................ 46
2 14.00%, 3/15/12............................................ 3
12 14.00%, 4/15/12............................................ 15
27 14.00%, 5/15/12............................................ 33
132 14.00%, 7/15/12............................................ 156
66 14.00%, 8/15/12............................................ 81
115 14.00%, 9/15/12............................................ 141
108 14.00%, 10/15/12........................................... 132
106 14.00%, 7/15/14............................................ 130
170 14.00%, 8/15/14............................................ 208
313 14.00%, 9/15/14............................................ 380
9 14.00%, 9/20/14............................................ 11
372 14.00%, 10/15/14........................................... 452
103 14.00%, 11/15/14........................................... 125
160 14.00%, 12/15/14........................................... 195
10 14.00%, 1/20/15............................................ 11
214 14.00%, 2/15/15............................................ 261
13 14.25%, 10/15/97........................................... 14
41 14.25%, 11/15/97........................................... 46
</TABLE>
Continued
74
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
7 14.25%, 9/15/99............................................ $ 8
1 14.25%, 10/15/99........................................... 1
26 14.50%, 6/15/11............................................ 30
12 14.50%, 11/15/11........................................... 14
2 14.50%, 3/15/12............................................ 2
106 14.50%, 9/15/12............................................ 123
148 14.50%, 10/15/12........................................... 175
47 14.50%, 8/15/14............................................ 58
4 14.75%, 10/15/96........................................... 5
6 14.75%, 11/15/96........................................... 7
2 14.75%, 4/15/97............................................ 3
4 14.75%, 5/15/97............................................ 5
1 14.75%, 6/15/97............................................ 1
17 15.00%, 5/15/97............................................ 19
117 15.00%, 6/15/11............................................ 149
569 15.00%, 7/15/11............................................ 713
364 15.00%, 8/15/11............................................ 458
713 15.00%, 9/15/11............................................ 894
73 15.00%, 10/15/11........................................... 93
6 15.00%, 11/15/11........................................... 7
172 15.00%, 12/15/11........................................... 212
164 15.00%, 1/15/12............................................ 204
656 15.00%, 2/15/12............................................ 813
270 15.00%, 3/15/12............................................ 336
296 15.00%, 4/15/12............................................ 369
719 15.00%, 5/15/12............................................ 899
658 15.00%, 6/15/12............................................ 824
602 15.00%, 7/15/12............................................ 752
50 15.00%, 8/01/12............................................ 63
1181 15.00%, 8/15/12............................................ 1,472
1860 15.00%, 9/15/12............................................ 2,326
153 15.00%, 10/15/12........................................... 192
210 15.00%, 11/15/12........................................... 264
169 15.00%, 12/15/12........................................... 211
25 15.00%, 1/15/13............................................ 31
49 15.00%, 2/15/13............................................ 61
21 15.00%, 4/15/13............................................ 26
4 15.25%, 11/15/96........................................... 5
6 15.25%, 12/15/96........................................... 7
19 15.25%, 2/15/97............................................ 21
19 15.25%, 3/15/97............................................ 21
22 15.50%, 8/15/11............................................ 26
42 15.50%, 9/15/11............................................ 48
56 15.50%, 10/15/11........................................... 65
11 15.75%, 11/15/96........................................... 13
7 15.75%, 12/15/96........................................... 8
3 15.75%, 2/15/97............................................ 4
20 15.75%, 3/15/97............................................ 23
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Government National Mortgage Assoc., continued:
5 15.75%, 4/15/97............................................ $ 5
30 15.75%, 5/15/97............................................ 34
19 15.75%, 12/15/11........................................... 21
1 16.75%, 1/15/97............................................ 1
74 17.00%, 11/15/95........................................... 88
49 17.00%, 11/15/11........................................... 59
Federal Home Loan Mortgage Corp.:
3,395 6.00%, 6/1/09.............................................. 3,365
5,375 6.25%, 10/15/22............................................ 5,303
2,742 6.50%, 3/25/09............................................. 2,759
1 7.00%, 1/1/02.............................................. 1
115 8.00%, 12/1/01............................................. 119
290 8.00%, 2/1/02.............................................. 300
204 8.00%, 3/1/02.............................................. 211
79 8.00%, 4/1/02.............................................. 82
224 8.00%, 6/1/02.............................................. 232
59 8.00%, 7/1/02.............................................. 61
520 8.00%, 9/1/02.............................................. 537
991 8.50%, 9/1/07.............................................. 1,035
91 8.75%, 3/1/05.............................................. 95
18 8.75%, 9/1/05.............................................. 19
320 8.75%, 8/1/07.............................................. 333
8 8.75%, 1/1/08.............................................. 8
265 8.75%, 10/1/08............................................. 276
77 8.75%, 11/1/08............................................. 80
126 8.75%, 3/1/09.............................................. 131
18 8.75%, 5/1/09.............................................. 19
74 8.75%, 8/1/09.............................................. 77
70 8.75%, 9/1/09.............................................. 73
153 8.75%, 6/1/10.............................................. 160
177 8.75%, 8/1/10.............................................. 185
34 8.75%, 7/1/12.............................................. 36
273 8.75%, 8/1/16.............................................. 284
475 8.75%, 2/1/17.............................................. 495
38 8.75%, 3/1/17.............................................. 39
1053 8.75%, 5/1/17.............................................. 1,098
117 8.75%, 7/1/17.............................................. 122
106 8.75%, 8/1/17.............................................. 111
50 9.00%, 4/1/97.............................................. 52
95 9.00%, 5/1/97.............................................. 98
164 9.00%, 9/1/97.............................................. 169
143 9.00%, 10/1/97............................................. 147
2,495 9.00%, 7/25/20............................................. 2,644
7,887 9.00%, 10/25/00............................................ 8,415
10 9.00%, 7/1/01.............................................. 10
51 9.00%, 3/1/03.............................................. 53
2,156 9.00%, 6/1/14.............................................. 2,284
2,421 9.00%, 10/1/17............................................. 2,567
</TABLE>
Continued
75
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
15 9.50%, 5/1/97.............................................. $ 16
161 9.50%, 6/1/97.............................................. 167
4 9.50%, 4/1/01.............................................. 4
20 9.50%, 7/1/01.............................................. 21
34 9.50%, 8/1/01.............................................. 36
47 9.50%, 9/1/01.............................................. 49
136 9.50%, 10/1/01............................................. 142
55 9.50%, 11/1/01............................................. 57
127 9.50%, 12/1/01............................................. 133
13 9.50%, 1/1/02.............................................. 14
31 9.50%, 10/1/02............................................. 32
20 9.50%, 12/1/02............................................. 21
3,949 9.50%, 6/1/11.............................................. 4,177
2,864 9.50%, 12/15/18............................................ 2,979
1,892 9.50%, 10/1/20............................................. 2,002
38 10.00%, 7/1/00............................................. 40
25 10.00%, 9/1/00............................................. 27
10 10.00%, 12/1/00............................................ 10
9 10.00%, 1/1/01............................................. 9
76 10.00%, 10/1/01............................................ 79
79 10.00%, 2/1/01............................................. 83
235 10.00%, 3/1/01............................................. 247
56 10.00%, 6/1/01............................................. 59
12 10.00%, 7/1/01............................................. 12
126 10.00%, 8/1/01............................................. 133
131 10.00%, 9/1/01............................................. 138
67 10.00%, 10/1/01............................................ 70
45 10.00%, 11/1/01............................................ 47
15 10.00%, 10/1/02............................................ 16
30 10.00%, 11/1/02............................................ 32
237 10.00%, 12/1/02............................................ 249
226 10.00%, 1/1/03............................................. 238
232 10.00%, 3/1/03............................................. 244
271 10.00%, 10/1/03............................................ 284
31 10.00%, 2/1/04............................................. 33
19 10.00%, 4/1/04............................................. 20
354 10.00%, 6/1/04............................................. 372
107 10.00%, 8/1/04............................................. 112
2 10.00%, 1/1/01............................................. 2
27 10.00%, 3/1/01............................................. 29
94 10.50%, 8/1/99............................................. 100
208 10.50%, 6/1/00............................................. 220
459 10.50%, 7/1/00............................................. 484
79 10.50%, 8/1/00............................................. 83
88 10.50%, 9/1/00............................................. 93
318 10.50%, 10/1/00............................................ 337
937 10.50%, 11/1/00............................................ 989
420 10.50%, 12/1/00............................................ 443
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
253 10.50%, 1/1/01............................................. $ 268
257 10.50%, 2/1/01............................................. 272
47 10.50%, 3/1/01............................................. 49
8 10.50%, 4/1/01............................................. 9
167 10.50%, 11/1/02............................................ 176
25 10.50%, 2/1/03............................................. 27
38 10.50%, 2/1/04............................................. 40
52 10.50%, 4/1/04............................................. 54
26 10.50%, 5/1/04............................................. 28
109 10.50%, 7/1/04............................................. 115
2,313 10.50%, 12/1/19............................................ 2,539
32 11.00%, 4/1/00............................................. 34
298 11.00%, 5/1/00............................................. 315
352 11.00%, 8/1/00............................................. 373
261 11.00%, 9/1/00............................................. 276
971 11.00%, 10/1/00............................................ 1,028
160 11.00%, 1/1/01............................................. 170
244 11.00%, 2/1/01............................................. 258
210 11.00%, 4/1/01............................................. 223
79 11.25%, 6/1/13............................................. 88
117 11.25%, 5/1/14............................................. 131
33 11.50%, 3/1/99............................................. 35
3 11.50%, 1/1/00............................................. 4
39 11.50%, 2/1/00............................................. 42
34 11.50%, 5/1/00............................................. 36
77 11.50%, 9/1/00............................................. 82
14 11.50%, 11/1/00............................................ 15
11 11.50%, 12/1/00............................................ 12
74 11.50%, 1/1/01............................................. 79
23 11.50%, 4/1/01............................................. 25
118 11.75%, 1/1/13............................................. 132
30 11.75%, 7/1/13............................................. 34
21 11.75%, 10/1/13............................................ 24
12 11.75%, 11/1/13............................................ 13
45 11.75%, 6/1/14............................................. 51
194 11.75%, 5/1/15............................................. 217
41 12.00%, 11/1/99............................................ 44
111 12.00%, 11/1/00............................................ 119
46 12.00%, 3/1/00............................................. 50
14 12.00%, 4/1/00............................................. 15
26 12.00%, 9/1/11............................................. 29
16 12.00%, 3/1/12............................................. 18
3 12.00%, 4/1/12............................................. 3
92 12.00%, 10/1/12............................................ 104
104 12.00%, 1/1/13............................................. 118
27 12.00%, 4/1/13............................................. 31
97 12.00%, 7/1/13............................................. 110
77 12.00%, 8/1/13............................................. 87
</TABLE>
Continued
76
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
12 12.00%, 9/1/13............................................. $ 13
11 12.00%, 6/1/20............................................. 13
57 12.50%, 7/1/99............................................. 61
10 12.50%, 8/1/99............................................. 10
276 12.50%, 10/1/99............................................ 297
32 12.50%, 11/1/9............................................. 36
117 12.50%, 1/1/13............................................. 132
564 12.50%, 5/1/15............................................. 643
34 12.50%, 6/1/15............................................. 39
MDC Asset Investors Trust:
1,000 7.00%, 2/20/19............................................. 997
--------
Total U.S. Government Agencies 127,689
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY BONDS (13.3%):
9,000 11.63%, 11/15/02........................................... $ 12,124
9,000 12.36%, 5/15/04............................................ 13,030
--------
Total U.S. Treasury Bonds 25,154
--------
U.S. TREASURY NOTES (17.1%):
3,000 7.25%, 11/30/96............................................ 3,052
2,700 7.88%, 4/15/98............................................. 2,852
6,700 6.25%, 8/31/00............................................. 6,933
17,675 7.25%, 8/15/04............................................. 19,661
--------
Total U.S. Treasury Notes 32,498
--------
Total Investments, at value 186,862
--------
REPURCHASE AGREEMENTS (0.1%):
202 Goldman Sachs, 5.95%, 1/2/96***............................ 202
--------
Total Repurchase Agreements 202
--------
Total (Cost--$184,696)(a) $187,064
========
</TABLE>
- -------
Percentages indicated are based on net assets of $189,573.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by amount of losses recognized for
financial reporting in excess of federal income tax reporting of
approximately $3. Cost for federal income tax purposes differs from value
ny net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $ 3,746
Unrealized depreciation....................................... (1,381)
-------
Net unrealized appreciation................................... $ 2,365
=======
</TABLE>
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
77
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (32.6%):
Airlines (0.9%):
4,000 United Air Lines Corp., 10.67%, 5/1/04................... $ 4,845
--------
Banking (2.0%):
5,000 Asian Development Bank, 6.38%, 6/8/03.................... 5,119
5,500 Continental Bank N.A., 11.25%, 7/1/01.................... 6,160
--------
11,279
--------
Entertainment (1.4%):
7,500 Time Warner Entertainment,
8.38%, 3/15/23.......................................... 8,100
--------
Financial Services (4.7%):
7,000 Chrysler Financial Corp., 6.12%, 11/30/98................ 7,053
4,444 Greentree Financial Corp., 7.25%, 7/15/05................ 4,518
11,000 Greentree Financial Corp., 7.20%, 4/15/19................ 11,555
3,350 Greentree Securitized Net Interest Margin Trust, 6.90%,
2/15/04................................................. 3,375
--------
26,501
--------
Foreign Banking (5.7%):
5,250 B.B.V. International Finance,
7.00%, 12/1/25.......................................... 5,230
5,000 Credit Suisse, 8.50%, 11/18/04........................... 5,694
5,000 Gen De Catalunya, 6.38%, 12/15/07........................ 5,025
10,000 Kansallis-Osake, 8.65%, 12/29/49......................... 10,732
5,000 Scotland International Bank,
8.80%, 1/27/04.......................................... 5,763
--------
32,444
--------
Foreign Governments (0.9%):
5,000 Freeport Terminal Malta (b),
7.50%, 3/29/09.......................................... 5,275
--------
Foreign Utilities--Electric (1.8%):
5,000 Tenaga Nasional Berhad, 7.88%, 6/15/04................... 5,494
4,550 Tenaga Nasional Berhad, 7.50%, 11/1/25................... 4,760
--------
10,254
--------
Foreign Government Agency (2.8%):
5,875 China International Trust & Investing, 9.00%, 10/15/06... 6,653
8,000 Export Development Corp., 8.50%, 8/19/03................. 9,130
--------
15,783
--------
Homebuilding/Related Financial Services (1.8%):
10,220 EQCC Home Equity Loan Trust,
5.73%, 12/15/08......................................... 9,974
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Industrial Goods & Services (3.5%):
5,000 Hanson Overseas, 6.75%, 9/15/05.......................... $ 5,175
6,000 Heinz Corp., 7.50%, 4/26/00.............................. 6,345
5,000 Mayne Nickless, 8.65%, 4/15/02........................... 5,644
3,000 Petroliam Nasional Berhd, 7.13%, 8/15/05................. 3,176
--------
20,340
--------
Insurance (4.1%):
5,000 Equitable Life, 6.95%, 12/1/05........................... 5,075
5,000 ITT Hartford, 7.30%, 11/1/15............................. 5,200
6,000 Nationwide Contingent Surplus Notes Trust, 9.88%,
2/15/25................................................. 6,975
5,855 Travelers Group Inc., 6.88%, 6/1/25...................... 6,097
--------
23,347
--------
Printing & Publishing (1.4%):
8,000 Alco Standard, 6.18%, 12/4/00............................ 8,050
--------
Telecommunications (1.6%):
9,200 New York Telephone Co., 7.00%, 8/15/25................... 9,200
--------
Total Corporate Bonds 185,392
--------
MEDIUM TERM NOTES (2.7%):
Manufacturing--Capital Goods (0.9%):
5,000 Cooper Industries, Inc., 6.66%, 11/1/05.................. 5,113
--------
Telecommunications (1.8%):
9,700 Southwestern Bell Capital, 6.60%, 11/27/06............... 9,967
--------
Total Medium Term Notes 15,080
--------
U.S. GOVERNMENT AGENCIES (26.2%):
Federal Home Loan Mortgage Corp.:
7,200 5.60%, 3/1/99............................................ 7,168
3,302 8.25%, 8/15/19........................................... 3,335
2,531 9.00%, 5/15/20........................................... 2,675
4,846 9.50%, 10/1/20........................................... 5,126
Federal National Mortgage Assoc.:
6,500 5.90%, 7/6/00............................................ 6,582
2,200 7.40%, 7/1/04............................................ 2,423
7,000 6.85%, 8/22/05........................................... 7,490
11,639 6.50%, 3/25/09........................................... 11,714
9,584 6.00%, 6/1/09............................................ 9,502
2,971 9.00%, 8/1/09............................................ 3,131
5,730 8.25%, 7/1/17............................................ 5,945
3,000 6.50%, 5/25/20........................................... 3,001
7,209 9.00%, 7/25/20........................................... 7,639
601 7.00%, 9/1/23............................................ 606
2,477 7.00%, 10/1/23........................................... 2,497
304 7.00%, 11/1/23........................................... 306
7,845 6.50%, 12/1/23........................................... 7,757
326 7.00%, 1/1/24............................................ 329
</TABLE>
Continued
78
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ --------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Assoc., continued:
1,263 7.00%, 2/1/24......................................... $ 1,273
992 7.00%, 3/1/24......................................... 1,000
4,038 7.00%, 5/1/24......................................... 4,071
3,682 7.00%, 6/1/24......................................... 3,712
1,658 7.00%, 7/1/24......................................... 1,672
345 7.00%, 11/1/24........................................ 348
541 7.00%, 12/1/24........................................ 546
2,017 8.00%, 6/15/17........................................ 2,101
461 8.00%, 3/15/23........................................ 480
100 8.00%, 3/15/23........................................ 104
755 8.00%, 4/15/23........................................ 787
274 8.00%, 5/15/23........................................ 285
2,726 8.00%, 6/15/23........................................ 2,840
241 8.00%, 7/15/23........................................ 251
132 8.00%, 10/15/23....................................... 138
1,589 8.00%, 11/15/23....................................... 1,656
24 8.00%, 2/15/24........................................ 25
147 8.00%, 4/15/24........................................ 153
859 8.00%, 5/15/24........................................ 895
1,014 8.00%, 6/15/24........................................ 1,056
689 8.00%, 7/15/24........................................ 717
1,211 8.00%, 8/15/24........................................ 1,262
1,738 8.00%, 9/15/24........................................ 1,810
805 8.00%, 10/15/24....................................... 839
1,016 8.00%, 11/15/24....................................... 1,059
643 8.00%, 12/15/24....................................... 669
836 8.00%, 1/15/25........................................ 871
62 8.00%, 3/15/25........................................ 64
25 8.00%, 4/15/25........................................ 26
104 8.00%, 5/15/25........................................ 108
14,639 6.00%, 5/20/25........................................ 14,876
5,834 6.00%, 7/20/25........................................ 5,892
Private Export Funding Corp.,
10,000 6.62%, 10/1/05........................................ 10,513
--------
Total U.S. Government Agencies 149,325
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY BONDS (3.8%):
10,000 7.50%, 11/15/24........................................... $ 12,007
7,820 7.63%, 2/15/25............................................ 9,554
--------
Total U.S. Treasury Bonds 21,561
--------
U.S. TREASURY NOTES (19.9%):
27,100 7.75%, 1/31/00............................................ 29,447
20,700 6.25%, 8/31/00............................................ 21,419
5,000 6.13%, 9/30/00............................................ 5,150
41,700 6.38%, 8/15/02............................................ 43,766
13,050 5.88%, 11/15/05........................................... 13,340
--------
Total U.S. Treasury Notes 113,122
--------
Total Investments, at value 484,480
--------
REPURCHASE AGREEMENTS (13.5%):
76,562 Goldman Sachs, 5.95%, 1/2/96***........................... 76,562
--------
Total Repurchase Agreements 76,562
--------
Total (Cost--$547,479)(a) $561,042
========
</TABLE>
- -------
Percentages indicated are based on net assets of $568,700.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $14,028
Unrealized depreciation....................................... (465)
-------
Net unrealized appreciation................................... $13,563
=======
</TABLE>
(b) Represents a restricted security, purchased under rule 144A, which is
exempt from registration under the Securities Act of 1933, as amended.
*** Repurchase agreements were fully collateralized by U.S. Government
Securities held by the Group's custodian or other qualified custodian.
See notes to financial statements.
79
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (98.2%):
Arizona (2.7%):
2,000 City of Phoenix, 6.00%, 7/1/01........................... $ 2,162
1,680 Salt River Project, 7.40%, 1/1/03........................ 1,814
--------
3,976
--------
California (5.2%):
1,760 Los Angeles Convention & Exhibit Center, 9.00%, 12/1/05.. 2,345
1,000 Los Angeles County Civic Center Heating & Refrigeration
Plant, 7.70%, 6/1/02.................................... 1,101
1,000 Oceanside-San Buenaventure Housing Finance Agency
Revenue, Residential Mortgage, 9.60%, 10/1/16........... 1,571
2,000 Perris Community Facility, 8.20%, 9/1/18................. 2,742
--------
7,759
--------
Colorado (2.3%):
1,000 Douglas County, 8.00%, 12/15/09.......................... 1,292
1,000 Metro Wastewater Reclamation, Series B, 6.75%, 4/1/01.... 1,110
1,000 Platte River Power Authority, Series Bb, 5.50%, 6/1/02... 1,072
--------
3,474
--------
Connecticut (1.4%):
1,770 Connecticut Clean Water Fund, 6.38%, 6/1/05.............. 2,020
--------
Delaware (0.9%):
1,000 Delaware Transportation Authority, 7.80%, 7/1/04......... 1,247
100 Delaware Economic Development Authority, Delmarva Power &
Light Co. Project, 6.10%*, 10/1/17...................... 100
--------
1,347
--------
Florida (2.5%):
135 Florida State Board of Education Capital, Outlay, 9.13%,
6/1/14.................................................. 195
865 Florida State Board of Education Capital, Outlay, 9.13%,
6/1/14.................................................. 1,241
2,000 State of Florida Board of Education, Series G, 6.90%,
5/1/03.................................................. 2,302
--------
3,738
--------
Georgia (4.0%):
1,200 Fayette County School District, 6.25%, 3/1/04............ 1,347
2,000 Georgia, Series B, 7.20%, 3/1/01......................... 2,275
2,000 Georgia, Series B, 6.00%, 3/1/04......................... 2,210
--------
5,832
--------
Guam (1.1%):
1,505 Guam Government Highway Revenue, Series A, 5.90%, 5/1/02. 1,629
--------
Idaho (1.3%):
1,560 Canyon County School District, 8.13%, 7/30/03............ 1,936
--------
Indiana (1.0%):
1,000 Indiana State Toll Road Community Toll Revenue, 9.00%,
1/1/15.................................................. 1,432
--------
Kansas (0.8%):
1,000 Kansas Department of Transportation & Highway, 7.25%,
3/1/04.................................................. 1,199
--------
</TABLE>
Continued
80
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Kentucky (1.4%):
2,000 Kentucky State Turnpike Authority, 5.50%, 7/1/07......... $ 2,100
--------
Maryland (8.0%):
1,750 Anne Arundel County, 6.90%, 1/15/99...................... 1,888
1,000 Baltimore County Maryland, 5.70%, 7/1/99................. 1,054
2,000 State of Maryland, 7.00%, 1/1/01......................... 2,140
5,250 State of Maryland, Third Series, 6.60%, 7/15/00.......... 5,782
1,000 University of Maryland Auxiliary Facility & Tuition,
Series A, 7.00%, 10/1/99................................ 1,101
--------
11,965
--------
Massachusetts (4.2%):
1,000 Massachusetts Bay Trans Authority, Series A, 7.00%,
3/1/08.................................................. 1,174
3,600 Massachusetts Strategic, Series C, 6.00%, 8/1/09......... 3,969
1,000 Harvard University State Health, Series N, 6.25%, 4/1/20. 1,153
--------
6,296
--------
Michigan (2.7%):
1,000 Dearborn School District, 8.38%, 5/1/00.................. 1,176
1,500 Michigan Strategic Fund, Ford, 7.10%, 2/1/06............. 1,748
1,000 Western Michigan University, Series A, 6.50%, 7/15/01.... 1,123
--------
4,047
--------
Missouri (1.5%):
1,000 State of Missouri, Series A, 6.00%, 4/1/02............... 1,103
1,000 Missouri State Health & Educational Facility, 6.88%,
2/15/01................................................. 1,135
--------
2,238
--------
Montana (1.4%):
1,010 Montana, Long Range Building Project, Series A, 6.00%,
8/1/02.................................................. 1,103
1,000 Montana State Department of Transportation & Highway,
5.15%, 7/1/04........................................... 1,031
--------
2,134
--------
Nevada (2.4%):
2,000 Clark County Sanitation District, Series A, 6.75%,
7/1/02.................................................. 2,273
1,100 Las Vegas Valley, 7.00%, 8/1/00.......................... 1,243
--------
3,516
--------
New Hampshire (3.7%):
5,000 New Hampshire State Turnpike System, 8.38%, 11/1/97...... 5,475
--------
New Mexico (2.2%):
1,000 Albuquerque New Mexico Water & Sewer, 6.00%, 7/1/05...... 1,103
1,000 Albuquerque New Mexico Water & Sewer, 6.00%, 7/1/07...... 1,096
1,000 Bernalillo County New Mexico, 5.70%, 8/1/97.............. 1,029
--------
3,228
--------
</TABLE>
Continued
81
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New York (6.6%):
1,050 New York State Dorm Authority, Series A, 5.75%, 7/1/10... $ 1,122
2,000 New York State Power Authority, Series W, 6.63%, 1/1/03.. 2,245
2,500 North Hempstead General Obligation, Series B, 6.00%,
04/01/05................................................ 2,759
1,000 Triborough Bridge & Tunnel Authority, Series Y, 6.00%,
1/1/12.................................................. 1,089
2,200 Westchester County, 6.70%, 11/1/05....................... 2,588
--------
9,803
--------
North Carolina (0.9%):
1,200 City of Winston Salem, 6.50%, 6/1/99..................... 1,293
--------
Ohio (4.5%):
1,230 Cleveland School District, 8.00%, 12/1/01................ 1,462
1,750 Cleveland Waterworks Revenue, Series G, 5.50%, 1/1/13.... 1,835
1,000 Franklin County, 6.80%, 12/1/00.......................... 1,130
2,025 Hamilton City Electric, Series B, 8.00%, 10/15/98........ 2,265
--------
6,692
--------
Oklahoma (4.6%):
2,250 Grand River Dam Authority, 5.75%, 6/1/08................. 2,422
1,000 Grand River Dam Authority, 6.25%, 6/1/11................. 1,139
1,000 Oklahoma City, 5.45%, 8/1/07............................. 1,048
1,975 Oklahoma Municipal Power Authority, 5.88%, 1/1/15........ 2,175
--------
6,784
--------
Oregon (2.8%):
1,000 Deschutes & Jefferson School District, 6.00%, 6/1/03..... 1,095
1,435 County of Lane School District Number 4 J-Eugene, 6.00%,
1/1/04.................................................. 1,577
1,220 Washington County School District, 7.80%, 6/1/04......... 1,496
--------
4,168
--------
Pennsylvania (4.5%):
3,000 Pennsylvania Convention Center Authority, 6.00%, 9/1/19.. 3,345
2,000 State of Pennsylvannia, 6.25%, 7/1/11.................... 2,240
1,000 Pennsylvania Industrial Development Authority, 7.00%,
7/1/06.................................................. 1,178
--------
6,763
--------
Puerto Rico (7.6%):
1,000 Puerto Rico, MBIA, 6.50%, 7/1/04......................... 1,140
1,000 Puerto Rico Electric Power Authority, 6.00%, 7/1/04...... 1,093
2,000 Puerto Rico Electric Power Authority, Series W, 6.50%,
7/1/05.................................................. 2,273
5,000 Puerto Rico Electric Power Authority, 6.50%, 7/1/06...... 5,694
1,000 University of Puerto Rico, 6.25%, 6/1/07................. 1,124
--------
11,324
--------
South Carolina (0.9%):
1,250 Charleston County Revenue, 6.25%, 1/1/07................. 1,394
--------
</TABLE>
Continued
82
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
South Dakota (0.8%):
1,000 Heartland Consumer Power District, 6.80%, 1/1/02......... $ 1,123
--------
Tennessee (2.7%):
1,500 City of Memphis Electrical Systems, 6.00%, 1/1/06........ 1,669
1,000 Metropolitan Government Nashville & Davidson, Electric
Revenue, Series B, 5.50%, 5/15/02....................... 1,073
1,250 Tennessee State Series A, 6.10%, 6/1/00.................. 1,348
--------
4,090
--------
Texas (5.3%):
1,000 City of Dallas, 6.13%, 2/15/07........................... 1,095
1,200 City of Houston, 6.85%, 2/1/97........................... 1,239
5,000 State of Texas, 6.00%, 10/1/08........................... 5,550
--------
7,884
--------
Virginia (1.6%):
1,240 Arlington County, 5.00%, 6/1/09.......................... 1,249
1,000 Richmond Utility, 8.00%, 1/15/98......................... 1,096
--------
2,345
--------
Washington (2.0%):
1,000 King County, 6.10%, 12/1/01.............................. 1,007
1,000 City of Seattle, 7.00%, 3/1/02........................... 1,141
750 Washington Public Power, 13.50%, 7/1/97.................. 851
--------
2,999
--------
Wisconsin (1.3%):
770 Madison School District, 7.55%, 4/1/99................... 852
1,000 Milwaukee Metropolitan Sewer District, 6.60%, 10/1/99.... 1,081
--------
1,933
--------
Virgin Islands (0.9%):
1,000 Virgin Islands Public Finance Authority, 7.30%, 10/1/18.. 1,270
--------
Wyoming (0.5%):
800 Exxon Corp., Series C, 6.00%*, 7/1/17.................... 800
--------
Total Municipal Bonds 146,006
--------
Total (Cost--$139,148)(a) $146,006
========
</TABLE>
- -------
Percentages indicated are based on net assets of $148,749.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $ 6,858
Unrealized depreciation......................................... 0
-------
Net unrealized appreciation..................................... $ 6,858
=======
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rate,
which will change periodically, is based upon bank prime rates or an index
of market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect on December 31, 1995.
MBIA--Municipal Bond Insurance Association.
See notes to financial statements.
83
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (98.0%):
Michigan (89.2%):
1,000 Allendale Public School District, 5.88%, 5/1/14, Insured
by MBIA.................................................. $ 1,042
1,850 Avondale School District, 5.80%, 5/1/07................... 1,963
1,380 Byron Center, Michigan Public Schools, 8.25%, 5/1/08,
Insured by MBIA.......................................... 1,791
1,380 Byron Center, Michigan Public Schools, 8.25%, 5/1/09,
Insured by MBIA.......................................... 1,797
1,500 Chippewa Valley School District, 8.10%, 5/1/99............ 1,676
2,375 Chippewa Valley School District, 7.80%, 5/1/01............ 2,767
1,000 Chippewa Valley School District, 7.00%, 5/1/11............ 1,140
1,050 Dearborn, Michigan School District, 5.25%, 5/1/07......... 1,084
1,100 Dearborn School District, 8.38%, 5/1/00................... 1,294
2,000 Detroit, Michigan General Obligation Revenue Bonds, 5.25%,
5/1/08, Insured by AMBAC................................. 2,017
1,000 Detroit, Michigan Sewage Disposal Revenue, 6.00%, 7/1/09.. 1,087
1,000 Detroit, Michigan Sewage Disposal Revenue, 6.00%, 7/1/10.. 1,087
2,750 Detroit, Michigan Water Revenue, 6.50%, 7/1/15, Insured by
FGIC..................................................... 3,173
1,000 Detroit, Michigan Water Supply Systems, Series B, 5.55%,
7/1/12, Insured by MBIA.................................. 1,032
1,275 Detroit Sewer Revenue, 6.20%, 7/1/02...................... 1,415
2,000 Detroit Water Revenue, 7.88%, 7/1/98...................... 2,217
1,750 Detroit Water Revenue, 5.70%, 7/1/00, Insured by FGIC..... 1,855
1,125 Goodrich Michigan Area School District, 7.65%, 5/1/11,
Insured by AMBAC......................................... 1,364
1,000 Grand Haven, Michigan Electric, 5.20%, 7/1/06, Insured by
MBIA..................................................... 1,027
1,235 Grand Haven, Michigan Public Schools, 7.00%, 5/1/07....... 1,413
1,250 Grand Ledge, Michigan Public School District, 5.45%,
5/1/11, Insured by MBIA.................................. 1,278
1,200 Grand Rapids, 6.50%, 5/1/00............................... 1,305
2,175 Grand Rapids Community College, 5.88%, 5/1/14............. 2,267
1,925 Grand Rapids School District, 5.00%, 5/1/06............... 1,944
1,000 Hartland School District, 5.35%, 5/1/03................... 1,037
1,570 Holland Electric, 6.25%, 7/1/01........................... 1,715
1,750 Holland Electric, 6.50%, 7/1/99........................... 1,879
1,875 Holland Electric, 6.50%, 7/1/99........................... 2,013
600 Holt School District, 8.75%, 5/1/00....................... 701
600 Holt School District, 8.75%, 5/1/01....................... 718
2,500 Huron Valley School District, 7.10%, 5/1/08............... 2,863
1,650 Kalamazoo, 6.20%, 10/1/06................................. 1,798
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04............... 2,095
1,000 Kalamazoo Hospital Finance Authority, 5.63%, 7/1/00....... 1,056
1,015 Kalamazoo Hospital Finance Authority, Bronson Hospital,
5.63%, 5/15/01........................................... 1,071
2,000 Kalamazoo Hospital Finance Authority, Series A, Borgess
Medical Center, 6.00%, 6/1/03............................ 2,177
2,000 Kalamazoo Hospital Financing Authority, Borgess Medical
Center, 6.13%, 7/1/07.................................... 2,152
1,440 Kalamazoo Hospital Financing Authority, Bronson Hospital,
5.88%, 5/15/03........................................... 1,546
1,500 Kalamazoo, Michigan Hospital Authority, Series A, 6.25%
6/1/14................................................... 1,671
1,120 Kent County, 8.00%, 12/1/98............................... 1,246
1,000 Kent County Hospital Authority, Butterworth Hospital,
7.25%, 1/15/00........................................... 1,129
5,000 Kent County Hospital Authority, Butterworth Hospital,
Series A, 7.25%, 1/15/13................................. 6,112
500 Kentwood Public Schools, 7.15%, 5/1/99.................... 554
1,000 Kentwood School District, 7.15%, 5/1/99................... 1,107
</TABLE>
Continued
84
<PAGE>
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Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
1,000 Kentwood School District, 5.90%, 5/1/04................... $ 1,087
2,025 Lanse Creuse Public Schools, 6.00%, 5/1/98................ 2,109
1,000 Lansing Building Authority, 6.00%, 6/1/04................. 1,086
1,000 Lansing, Michigan Light, 6.00%, 10/1/02................... 1,089
1,980 Lansing, Michigan Water & Electric Systems, 5.00%, 7/1/13. 1,938
2,000 Lansing School District, 6.88%, 5/1/09.................... 2,237
1,500 Lansing Sewage Disposal, Revenue Bonds, 6.85%, 5/1/96..... 1,560
1,000 Livonia School District, 6.35%, 5/1/04.................... 1,107
1,000 Michigan, 5.30%, 11/1/98.................................. 1,032
1,000 Michigan Building Authority, 6.25%, 10/1/00............... 1,084
1,000 Michigan Building Authority, 6.10%, 10/1/01............... 1,091
1,600 Michigan Comprehensive Transportation, Series B, 5.40%,
5/15/01.................................................. 1,668
1,000 Michigan Housing Development Authority, Series A, 6.45%,
6/1/04................................................... 1,079
1,500 Michigan Municipal Bond Authority, 7.75%, 5/1/98.......... 1,650
2,000 Michigan Municipal Bond Authority, 6.25%, 5/15/00......... 2,162
1,000 Michigan Municipal Bond Authority, Detroit Schools State
Aid, 6.70%, 11/1/99...................................... 1,088
1,000 Michigan Municipal Bond Authority, Local Government
Program, 6.90%, 5/1/99................................... 1,082
2,000 Michigan Municipal Bond Authority, Transportation Fund,
7.70%, 8/1/97............................................ 2,117
1,500 Michigan South Central Power Agency, 7.25%, 11/1/06....... 1,573
1,000 Michigan State, 5.00%, 12/1/03............................ 1,042
1,000 Michigan State Building Authority, 6.25%, 10/1/04......... 1,092
1,850 Michigan State Building Authority, Detroit Regional
Prisons, 7.10%, 10/1/98.................................. 1,996
1,020 Michigan State Building Authority, Michigan University
Adult General Hospital, 7.00%, 12/1/02................... 1,177
1,000 Michigan State Building Authority, Series II, 6.40%,
10/1/04.................................................. 1,103
2,300 Michigan State Comprehensive Transportation, 6.70%,
9/1/98................................................... 2,450
3,000 Michigan State Environmental Protection Program, 5.50%,
11/1/05.................................................. 3,225
925 Michigan State Environmental Protection Program, 6.25%,
11/1/07.................................................. 1,033
3,250 Michigan State Environmental Protection Program, 6.25%,
11/1/12.................................................. 3,664
500 Michigan State Hospital Authority, Henry Ford, 6.00%,
9/1/11................................................... 543
2,000 Michigan State Hospital Authority, Henry Ford, 6.00%,
9/1/12................................................... 2,183
1,135 Michigan State Hospital Financial Authority, Harper-Grace
Hospital, 7.13%, 5/1/09.................................. 1,331
1,200 Michigan State Hospital Financial Authority, Series A,
Oakwood Hospital Obligation Group, 5.00%, 11/1/03........ 1,229
5,000 Michigan State Hospital Financial Authority, Sisters of
Mercy, 5.38%, 8/15/14, Insured by MBIA................... 5,088
1,000 Michigan State Housing Development, 6.63%, 10/15/06....... 1,096
2,000 Michigan State Recreation Program, 5.75%, 11/1/01......... 2,140
2,000 Michigan State South Central Power Agency, Power Supply
Systems, 5.80%, 11/1/05.................................. 2,158
2,000 Michigan State Trunk Line, 7.20%, 6/1/96.................. 2,069
500 Michigan State Trunk Line, 6.80%, 8/15/99................. 553
1,000 Michigan State Trunk Line, 7.00%, 8/15/17................. 1,113
1,000 Michigan State Trunk Line, Series B-2, 5.40%, 10/1/01..... 1,045
1,000 Michigan State University, Series A, 5.70%, 8/15/03....... 1,069
100 Michigan Strategic Fund, Series A, 5.95%*, 6/15/10........ 100
3,000 Michigan Strategic Fund, Detroit Edison, 7.00%, 7/15/08... 3,555
</TABLE>
Continued
85
<PAGE>
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Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
2,000 Michigan Strategic Fund, Detroit Edison, 6.95%, 5/1/11... $ 2,378
4,400 Michigan Strategic Fund, Ford, 7.10%, 2/1/06............. 5,126
2,075 Mona Shores School District, 6.75%, 5/1/09, Insured by
FGIC.................................................... 2,402
1,000 Paw Paw Michigan Public School District, 6.50%, 5/1/09,
Insured by FGIC......................................... 1,133
1,300 Plymouth-Canton, 6.55%, 5/1/08........................... 1,445
2,000 Plymouth-Canton Michigan Community School District,
5.40%, 5/1/07........................................... 2,055
1,000 Plymouth School District, 6.50%, 5/1/05.................. 1,103
1,000 Rochester Community School District, 5.25%, 5/1/04....... 1,046
2,985 Rochester Michigan Community School District, 5.63%,
5/1/10.................................................. 3,119
1,000 Rochester Michigan School District, 6.50%, 5/1/08........ 1,111
2,000 Rochester School District, 6.30%, 5/1/04................. 2,203
1,000 Rochester School District, 6.50%, 5/1/07................. 1,111
1,135 Rockford School District, 5.75%, 5/1/07.................. 1,199
1,000 Royal Oak Hospital Authority, 7.25%, 1/1/99.............. 1,105
1,145 Royal Oak Hospital Authority, William Beaumont, 7.00%,
1/1/98.................................................. 1,207
2,000 Royal Oak, Michigan Hospital Financial Authority, William
Beaumont Hospital Project, Series C,
7.38%, 1/1/99........................................... 2,218
2,120 Royal Oak, Michigan Hospital Financial Authority, William
Beaumont Hospital Project, Series G,
6.00%, 11/15/02......................................... 2,292
1,340 State of Michigan Building Authority, Series I, 6.00%,
10/1/02................................................. 1,467
1,000 Traverse City Public Schools, 7.00%, 5/1/01.............. 1,136
400 Traverse City School District, 9.00%, 5/1/99............. 461
1,000 Troy School District, 7.75%, 5/1/00...................... 1,156
2,000 University of Michigan Hospital Revenue Bonds, 7.00%,
12/1/21................................................. 2,275
500 University of Michigan, 6.00%, 4/1/05.................... 549
300 University of Michigan Hospitals, Series A, 5.90%,
12/01/27................................................ 300
1,315 University of Michigan, Series A, 5.80%, 12/1/05......... 1,417
1,000 University of Michigan Student Fees, 5.00%, 4/1/02....... 1,038
2,000 University of Michigan Student Fees, Series B, 5.60%,
4/1/08.................................................. 2,103
1,975 Utica School District, 5.60%, 5/1/05..................... 2,089
1,680 Western Michigan School District., 5.90%, 5/1/10......... 1,812
1,475 Western Michigan University, Series A, 5.30%, 7/15/07.... 1,516
1,500 Western Michigan University, Series A, 5.40%, 7/15/08.... 1,541
1,000 Western Township Utilities Authority, 6.00%, 1/1/00...... 1,059
1,000 Wyandotte City School District, 6.90%, 5/1/01............ 1,136
3,000 Wyandotte Michigan Electric Revenue, 6.25%, 10/1/08,
Insured by MBIA......................................... 3,334
1,255 Wyoming Public Schools, 5.88%, 5/1/13.................... 1,302
--------
201,512
--------
Puerto Rico (7.0%):
1,000 Puerto Rico Commonwealth, 6.25%, 7/1/09.................. 1,134
2,000 Puerto Rico Commonwealth, 6.25%, 7/1/10.................. 2,258
500 Puerto Rico Commonwealth, 6.25%, 7/1/12.................. 564
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority,
6.00%, 7/1/07, Insured by MBIA.......................... 1,103
</TABLE>
Continued
86
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Puerto Rico, continued:
1,800 Puerto Rico Commonwealth Highway, Series W, 5.50%,
7/1/13.................................................. $ 1,872
1,250 Puerto Rico Electric Power Authority, Series W, 6.50%,
7/1/05.................................................. 1,420
1,000 Puerto Rico Electric Power Authority, Series Y, 6.50%,
7/1/06.................................................. 1,139
4,000 Puerto Rico Public Buildings Authority, 5.50%, 7/1/07.... 4,215
1,000 Puerto Rico Public Building Authority, Series L, 5.50%,
7/1/21, Insured by AMBAC................................ 1,034
1,000 University of Puerto Rico, 6.25%, 6/1/07................. 1,124
--------
15,863
--------
Virgin Islands (1.8%):
3,100 Virgin Islands Public Finance Authority, 7.30%, 10/1/18.. 3,937
--------
3,937
--------
Total Municipal Bonds 221,312
--------
ALTERNATIVE MINIMUM TAX PAPER (0.5%):
Michigan (0.5%):
285 Wayne County Michigan Airport Revenue, 7.25%, 12/1/10.... 316
750 Wayne County Airport Revenue Bonds, 8.13%, 12/1/06....... 789
--------
1,105
--------
Total Alternative Minimum Tax Paper 1,105
--------
Total (Cost--$209,212)(a) $222,417
========
</TABLE>
- -------
Percentages indicated are based on net assets of $225,834.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation......................................... $13,212
Unrealized depreciation......................................... (7)
-------
Net unrealized appreciation..................................... $13,205
=======
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rate,
which will change periodically, is based upon bank prime rates or an index
of market interest rates. The rate reflected on the Schedule of Portfolio
Investment is the rate in effect on December 31, 1995.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
AMBAC--American Municipal Bond Assurance Corporation.
FGIC--Financial Guaranty Insurance Corporation.
MBIA--Municipal Bond Insurance Association.
See notes to financial statements.
87
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
1. ORGANIZATION:
The Parkstone Group of Funds (the "Group") was organized on July 9, 1987, and
is registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company established as a Massachusetts
business trust. The Group is authorized to issue an unlimited number of
shares without par value. The Group presently offers shares of the Prime
Obligations Fund, the U.S. Government Obligations Fund, the Treasury Fund,
the Tax-Free Fund, the High Income Equity Fund, the Large Capitalization
Fund, the Equity Fund, the Small Capitalization Fund, the International
Discovery Fund, the Balanced Fund, the Limited Maturity Bond Fund, the
Intermediate Government Obligations Fund, the U.S. Government Income Fund,
the Bond Fund, the Municipal Bond Fund, and the Michigan Municipal Bond Fund
(collectively, the "Funds" and individually, a "Fund"). Sales of shares of
the Funds may be made to customers of First of America Bank--Michigan N.A.
("First of America") and its affiliates, to all accounts of correspondent
banks of First of America and to the general public. First of America
Investment Corp. ("FIC"), a wholly-owned subsidiary of First of America,
serves as investment adviser to the Group.
The Group has issued two classes of shares in each of the Prime Obligations
Fund, the U.S. Government Obligations Fund, the Treasury Fund and the Tax-
Free Fund (collectively, "the money market funds"): Investor A and
Institutional. The Group has issued four classes of shares in each of the
High Income Equity Fund, the Large Capitalization Fund, the Equity Fund, the
Small Capitalization Fund, the International Discovery Fund, the U.S.
Government Income Fund, the Bond Fund, the Municipal Bond Fund, and the
Michigan Municipal Bond Fund (collectively, "the variable net asset value
funds"): Investor A, Investor B, Investor C and Institutional. The Investor A
shares of the variable net asset value funds are subject to initial sales
charges imposed at the time of purchase, in accordance with the Funds'
prospectuses. Certain redemptions of Investor B shares made within four years
of purchase and Investor C shares made within one year of purchase are
subject to contingent deferred sales charges in accordance with the Funds'
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the
Investor A, Investor B and Investor C shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each class
of shares.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Group in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period. Actual results could differ from those estimates.
SECURITIES VALUATION:
Investments of the money market funds are valued at either amortized cost,
which approximates market value, or at original cost which, combined with
accrued interest approximates market value. Under the amortized cost
method, discount or premium is amortized on a constant basis to the
maturity of the security. In addition, the money market funds may not (a)
purchase any instrument with a remaining maturity greater than thirteen
months unless such instrument is subject to a demand feature, or (b)
maintain a dollar-weighted-average portfolio maturity which exceeds 90
days.
Investments in common and preferred stocks, corporate bonds, commercial
paper, municipal and foreign government bonds and U.S. Government
securities of the variable net asset value funds are valued at their market
values determined on the basis of the mean between the latest available bid
and asked prices in the principal market (closing sales prices if the
principal market is an exchange) in which such securities are normally
traded.
Continued
88
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
Investments in foreign securities in the Balanced Fund and the
International Discovery Fund are valued based on quotations from the
primary market in which they are traded. The differences between the cost
and market values of investments held by the variable net asset value funds
are reflected as either unrealized appreciation or depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Discovery Fund and Balanced Fund denominated in a foreign
currency are translated to U.S. dollars at the current exchange rate.
Purchases and sales of securities, income receipts and expense payments are
translated to U.S. dollars at the exchange rate on the dates of the
transactions.
The Balanced Fund and the International Discovery Fund isolate that portion
of the results of operations resulting from changes in currency exchange
rates from the fluctuation arising from changes in market prices of
securities held. Reported net realized foreign exchange gains or losses
arise from sales and maturities of portfolio securities, sales of foreign
currencies, currency exchange fluctuations between the trade and settlement
dates of securities transactions, and the difference between the amounts of
assets and liabilities recorded and the U.S. dollar equivalent of the
amounts actually received or paid. Net unrealized foreign exchange gains
and losses arise from changes in the value of assets and liabilities,
including investments in securities, resulting from changes in currency
exchange rates.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation with capital, surplus and undivided
profits in excess of $100,000,000 (as of the date of their most recently
published financial statements) and from registered broker/dealers which
FIC deems creditworthy under guidelines approved by the Board of Trustees,
subject to the seller's agreement to repurchase such securities at a
mutually agreed-upon date and price. The repurchase price generally equals
the price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities. The seller, under a repurchase agreement, is required
to maintain the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities
subject to repurchase agreements are held by the Funds' custodian or
another qualified custodian or in the Federal Reserve/ Treasury book-entry
system. Repurchase agreements are considered to be loans by a Fund under
the 1940 Act.
REVERSE REPURCHASE AGREEMENTS:
The Funds may enter into reverse repurchase agreements, pursuant to which
the Funds would sell portfolio securities to financial institutions such as
banks and broker-dealers, and agree to repurchase them at a mutually
agreed-upon date and price. At the time a Fund enters into a reverse
repurchase agreement, it will place in a segregated custodial account
assets having a value equal to the repurchase price (including accrued
interest), and will subsequently continually monitor the account to ensure
that such equivalent value is maintained at all times.
Reverse repurchase agreements are considered to be borrowings by a Fund
under the 1940 Act.
Continued
89
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
FORWARD CURRENCY TRANSACTIONS:
The Funds may enter into a forward currency contract ("forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the forward fluctuates with changes
in currency exchange rates. The forward is marked-to-market daily and the
change in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the forward is closed, the Fund records a realized gain
or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. A Fund could be exposed to risk if
a counterparty is unable to meet the terms of a Forward or if the value of
the currency changes unfavorably.
LENDING PORTFOLIO SECURITIES:
In order to generate additional income, the Funds (subject to limitations)
may lend their portfolio securities to broker-dealers, banks, or
institutional borrowers of securities which have been determined
creditworthy under guidelines established by the Group's Board of Trustees
in exchange for 100% collateral consisting of cash or securities.
During the time portfolio securities are on loan, the borrower pays the
Fund any dividends or interest received on such securities. Loans are
subject to termination by the Fund or the borrower at any time. While a
Fund does not have the right to vote securities on loan, each Fund intends
to terminate the loan and regain the right to vote if that is considered
important with respect to the investment. In the event the borrower
defaults in its obligation to a Fund, such Fund bears the risk of delay in
the recovery of its portfolio securities and the risk of loss of rights in
the collateral.
OPTIONS TRANSACTIONS:
In order to hedge investment positions and facilitate buying and selling
securities, the variable net asset value funds may purchase call and put
options and may write covered call options on individual securities and
futures contracts. By writing call options, the variable net asset value
funds receive a premium and become obligated during the term of the option
to sell securities at a set price if the option is exercised. The variable
net asset value funds will write only covered call options, thereby owning
the underlying securities in the case of call options. To cover put
options, the variable net asset value funds will segregate cash or
securities with a value at least equal to the exercise price. The risk in
writing options is that the market value of the underlying securities could
move in the opposite direction from what is anticipated. The variable net
asset value funds also have the additional risk of not being able to enter
into a closing transaction if a liquid secondary market does not exist. The
High Income
Equity Fund, the Equity Fund, and the Small Capitalization Fund may use
index options also. Options on indices are similar to options on securities
except that, rather than the right to take or make delivery of securities
at a specified price, options on indices give the holder the right to
receive, upon exercise of the options, an amount of cash if the closing
level of the indices upon which the options are based are greater than, in
the case of a call, or less than, in the case of a put, the exercise price
of the options. In contrast to exchange-traded options, the variable net
asset value funds may also write over-the-counter options where the
completion of the obligation is dependent upon the credit standing of the
other party. Upon writing a covered option, an amount equal to the premium
is recorded by the variable net asset value funds as an asset or liability.
The asset or liability is marked-to-market each day to reflect the current
value of the option, resulting in unrealized appreciation or depreciation.
The variable net asset value funds will realize a gain or loss upon
expiration or closing of the option transaction. When options are
exercised, the premium amount is added to the proceeds from selling call
options or subtracted from the cost of purchasing put options.
Continued
90
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized capital gains, if any, are declared and
distributed annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for mortgage-backed securities,
foreign currency transactions, expiring capital loss carryforwards and
deferrals of certain losses. Permanent book and tax basis differences are
reflected in the components of net assets.
FEDERAL INCOME TAXES:
It is the policy of each Fund to qualify or to continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses of the Group are prorated to the
Funds on the basis of relative net assets.
RECLASSIFICATIONS:
Certain reclassifications have been made to the prior year financial
statements and financial highlights in order to conform to the current
period presentation.
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six months ended December 31, 1995 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
High Income Equity Fund................................ $ 98,414 $ 110,918
Large Capitalization Fund.............................. 19,063
Equity Fund............................................ 151,308 189,206
Small Capitalization Fund.............................. 188,248 173,407
International Discovery Fund........................... 80,905 83,251
Balanced Fund.......................................... 186,922 177,904
Limited Maturity Bond Fund............................. 420,503 423,448
Intermediate Government Obligations Fund............... 747,389 752,026
U.S. Government Income Fund............................ 198,709 192,727
Bond Fund.............................................. 2,973,089 2,999,637
Municipal Bond Fund.................................... 17,297 17,500
Michigan Municipal Bond Fund........................... 28,522 22,822
</TABLE>
Continued
91
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT
OBLIGATIONS FUND OBLIGATIONS FUND TREASURY FUND TAX-FREE FUND
------------------- ------------------- ------------------- -------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
--------- -------- --------- -------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1995:
Investor A Shares:
Shares issued.......... $ 136,535 136,535 $ 296,400 296,400 $ 584,036 584,036 $ 148,556 148,556
Dividends reinvested... 3,121 3,121 727 727 176 176 417 417
Shares redeemed........ (110,869) (110,869) (287,677) (287,677) (594,665) (594,665) (119,085) (119,085)
--------- -------- --------- -------- --------- -------- --------- --------
Net increase
(decrease)............ $ 28,787 28,787 $ 9,450 9,450 $ (10,453) (10,453) $ 29,888 29,888
========= ======== ========= ======== ========= ======== ========= ========
Institutional Shares:
Shares issued.......... $ 464,612 464,612 $ 251,965 251,965 $ 213,738 213,738 $ 66,881 66,881
Dividends reinvested... 11 11 64 64 1 1
Shares redeemed........ (427,609) (427,609) (262,274) (262,274) (209,157) (209,157) (55,231) (55,231)
--------- -------- --------- -------- --------- -------- --------- --------
Net increase
(decrease)............ $ 37,014 37,014 $ (10,245) (10,245) $ 4,582 4,582 $ 11,650 11,650
========= ======== ========= ======== ========= ======== ========= ========
For the year ended June
30, 1995:
Investor A Shares:
Shares issued.......... $ 115,250 115,250 $ 408,450 408,450 $ 944,045 944,045 $ 222,882 222,882
Dividends reinvested... 4,179 4,179 1,106 1,106 55 55 659 659
Shares redeemed........ (116,477) (116,477) (412,865) (412,865) (895,247) (895,247) (226,684) (226,684)
--------- -------- --------- -------- --------- -------- --------- --------
Net increase
(decrease)............ $ 2,952 2,952 $ (3,309) (3,309) $ 48,853 48,853 $ (3,143) (3,143)
========= ======== ========= ======== ========= ======== ========= ========
Institutional Shares:
Shares issued.......... $ 562,626 562,626 $ 471,611 471,611 $ 337,643 337,643 $ 103,465 103,465
Dividends reinvested... 3 3
Shares redeemed........ (483,958) (483,958) (436,665) (436,665) (221,449) (221,449) (89,425) (89,425)
--------- -------- --------- -------- --------- -------- --------- --------
Net increase
(decrease)............ $ 78,671 78,671 $ 34,946 34,946 $ 116,194 116,194 $ 14,040 14,040
========= ======== ========= ======== ========= ======== ========= ========
</TABLE>
Continued
92
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
(Amounts in Thousands)
LARGE SMALL
HIGH INCOME CAPITALIZATION CAPITALIZATION
EQUITY FUND FUND (A) EQUITY FUND FUND
---------------- -------------- ---------------- -----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- ------ ------- ------ -------- ------ --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1995:
Investor A Shares:
Shares issued.......... $ 4,049 264 $ 15,489 844 $ 165,488 5,739
Dividends reinvested... 2,774 175 1,731 95 11,425 424
Shares redeemed........ (7,809) (511) (12,480) (681) (150,333) (5,135)
-------- ------ -------- ------ --------- ------
Net increase
(decrease)............ $ (986) (72) $ 4,740 258 $ 26,580 1,028
======== ====== ======== ====== ========= ======
Investor B Shares:
Shares issued.......... $ 1,416 93 $ 3,026 168 $ 5,387 187
Dividends reinvested... 284 18 329 20 1,919 72
Shares redeemed........ (514) (34) (352) (22) (494) (17)
-------- ------ -------- ------ --------- ------
Net increase........... $ 1,186 77 $ 3,003 166 $ 6,812 242
======== ====== ======== ====== ========= ======
Investor C Shares:
Shares issued.......... $ 53 3 $ 273 15 $ 369 12
Dividends reinvested... 3 14 1 67 3
Shares redeemed........ (1) (33) (2) (54) (2)
-------- ------ -------- ------ --------- ------
Net increase........... $ 55 3 $ 254 14 $ 382 13
======== ====== ======== ====== ========= ======
Institutional Shares:
Shares issued.......... $ 14,645 958 $20,563 2,056 $ 78,604 4,339 $ 69,838 2,384
Dividends reinvested... 2,933 185 18,788 1,026 33,689 1,238
Shares redeemed........ (52,120) (3,418) (89,048) (4,890) (44,997) (1,529)
-------- ------ ------- ----- -------- ------ --------- ------
Net increase
(decrease)............ $(34,542) (2,275) $20,563 2,056 $ 8,344 475 $ 58,530 2,093
======== ====== ======= ===== ======== ====== ========= ======
For the year ended June
30, 1995:
Investor A Shares:
Shares issued.......... $ 9,298 683 $ 8,564 559 $ 76,122 3,330
Dividends reinvested... 1,941 143 3,563 260 4,826 237
Shares redeemed........ (21,125) (1,558) (9,622) (631) (68,083) (2,956)
-------- ------ -------- ------ --------- ------
Net increase
(decrease)............ $ (9,886) (732) $ 2,505 188 $ 12,865 611
======== ====== ======== ====== ========= ======
Investor B Shares:
Shares issued.......... $ 3,423 250 $ 4,023 263 $ 6,374 279
Dividends reinvested... 106 8 269 20 388 19
Shares redeemed........ (674) (50) (327) (22) (420) (18)
-------- ------ -------- ------ --------- ------
Net increase........... $ 2,855 208 $ 3,965 261 $ 6,342 280
======== ====== ======== ====== ========= ======
Investor C Shares:
Shares issued.......... $ 25 2 $ 148 9 $ 206 9
Dividends reinvested...
Shares redeemed........ (5) (2)
-------- ------ -------- ------ --------- ------
Net increase........... $ 25 2 $ 143 9 $ 204 9
======== ====== ======== ====== ========= ======
Institutional Shares:
Shares issued.......... $ 53,583 3,922 $124,966 8,174 $ 81,563 3,592
Dividends reinvested... 2,306 170 38,123 2,783 19,489 951
Shares redeemed........ (89,406) (6,534) (94,166) (6,105) (104,173) (4,622)
-------- ------ -------- ------ --------- ------
Net increase
(decrease)............ $(33,517) (2,442) $ 68,923 4,852 $ (3,121) (79)
======== ====== ======== ====== ========= ======
</TABLE>
- -------
(a)For the period December 28, 1995 (commencement of operations) to December
31, 1995.
Continued
93
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERNATIONAL LIMITED MATURITY
DISCOVERY FUND BALANCED FUND BOND FUND
---------------- ---------------- -------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- ------ -------- ------ --------- --------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1995:
Investor A Shares:
Shares issued.......... $ 54,333 4,376 $ 1,747 137 $ 777 80
Dividends reinvested... 29 2 818 65 443 46
Shares redeemed........ (53,898) (4,337) (831) (65) (3,437) (355)
-------- ------ -------- ------ --------- -------
Net increase
(decrease)............ $ 464 41 $ 1,734 137 $ (2,217) (229)
======== ====== ======== ====== ========= =======
Investor B Shares:
Shares issued.......... $ 1,220 100 $ 1,337 105 $ 114 12
Dividends reinvested... 131 10 26 3
Shares redeemed........ (317) (26) (97) (8) (26) (2)
-------- ------ -------- ------ --------- -------
Net increase........... $ 903 74 $ 1,371 107 $ 114 13
======== ====== ======== ====== ========= =======
Investor C Shares:
Shares issued.......... $ 169 13 $ 106 8 $ 6 1
Dividends reinvested... 1 10 1
Shares redeemed........ (25) (2) (28) (2)
-------- ------ -------- ------ --------- -------
Net increase........... $ 145 11 $ 88 7 $ 6 1
======== ====== ======== ====== ========= =======
Institutional Shares:
Shares issued.......... $ 35,615 2,832 $ 16,059 1,253 $ 14,721 1,518
Dividends reinvested... 414 33 4,604 365 2,294 237
Shares redeemed........ (24,729) (1,964) (15,291) (1,193) (19,286) (1,987)
-------- ------ -------- ------ --------- -------
Net increase
(decrease)............ $ 11,300 901 $ 5,372 425 $ (2,271) (232)
======== ====== ======== ====== ========= =======
For the year ended June
30, 1995:
Investor A Shares:
Shares issued.......... $ 30,198 2,574 $ 2,169 193 $ 3,074 322
Dividends reinvested... 1,701 149 467 43 927 98
Shares redeemed........ (31,404) (2,680) (3,321) (297) (10,163) (1,072)
-------- ------ -------- ------ --------- -------
Net increase
(decrease)............ $ 495 43 $ (685) (61) $ (6,162) (652)
======== ====== ======== ====== ========= =======
Investor B Shares:
Shares issued.......... $ 3,225 263 $ 537 47 $ 384 41
Dividends reinvested... 190 17 27 2 33 3
Shares redeemed........ (380) (33) (146) (13) (167) (17)
-------- ------ -------- ------ --------- -------
Net increase........... $ 3,035 247 $ 418 36 $ 250 27
======== ====== ======== ====== ========= =======
Investor C Shares:
Shares issued.......... $ 80 7 $ 112 10
Dividends reinvested...
Shares redeemed........ (2)
-------- ------ -------- ------
Net increase........... $ 80 7 $ 110 10
======== ====== ======== ======
Institutional Shares:
Shares issued.......... $ 62,941 5,125 $ 26,326 2,352 $ 38,414 4,032
Dividends reinvested... 6,993 611 2,521 230 3,769 398
Shares redeemed........ (48,828) (4,024) (21,878) (1,947) (58,884) (6,198)
-------- ------ -------- ------ --------- -------
Net increase
(decrease)............ $ 21,106 1,712 $ 6,969 635 $ (16,700) (1,768)
======== ====== ======== ====== ========= =======
</TABLE>
Continued
94
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE
GOVERNMENT U.S. GOVERNMENT
OBLIGATIONS FUND INCOME FUND BOND FUND
------------------- ---------------- ----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
--------- -------- -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1995:
Investor A Shares:
Shares issued.......... $ 1,636 164 $ 5,231 556 $ 7,374 755
Dividends reinvested... 571 58 1,085 116 438 45
Shares redeemed........ (4,031) (406) (4,950) (525) (7,154) (732)
--------- ------- -------- ------ -------- ------
Net increase
(decrease)............ $ (1,824) (184) $ 1,366 147 $ 658 68
========= ======= ======== ====== ======== ======
Investor B Shares:
Shares issued.......... $ 528 53 $ 5,643 602 $ 923 95
Dividends reinvested... 29 3 234 25 43 4
Shares redeemed........ (105) (11) (430) (46) (47) (5)
--------- ------- -------- ------ -------- ------
Net increase........... $ 452 45 $ 5,447 581 $ 919 94
========= ======= ======== ====== ======== ======
Investor C Shares:
Shares issued.......... $ 28 3 $ 10 1 $ 64 6
Dividends reinvested... 1 1 2
Shares redeemed........ (11) (1) (4)
--------- ------- -------- ------ -------- ------
Net increase........... $ 29 3 $ 0 0 $ 62 6
========= ======= ======== ====== ======== ======
Institutional Shares:
Shares issued.......... $ 26,174 2,636 $ 19,583 2,083 $ 52,707 5,411
Dividends reinvested... 2,112 212 615 66 11,947 1,226
Shares redeemed........ (31,890) (3,207) (9,762) (1,038) (40,730) (4,167)
--------- ------- -------- ------ -------- ------
Net increase
(decrease)............ $ (3,604) (359) $ 10,436 1,111 $ 23,924 2,470
========= ======= ======== ====== ======== ======
For the year ended June
30, 1995:
Investor A Shares:
Shares issued.......... $ 2,973 308 $ 11,739 1,265 $ 3,397 367
Dividends reinvested... 1,121 117 2,133 231 891 97
Shares redeemed........ (13,449) (1,406) (16,913) (1,831) (5,836) (624)
--------- ------- -------- ------ -------- ------
Net increase
(decrease)............ $ (9,355) (981) $ (3,041) (335) $ (1,548) (160)
========= ======= ======== ====== ======== ======
Investor B Shares:
Shares issued.......... $ 575 60 $ 6,143 662 $ 940 101
Dividends reinvested... 33 3 181 20 45 5
Shares redeemed........ (196) (20) (691) (75) (192) (21)
--------- ------- -------- ------ -------- ------
Net increase........... $ 412 43 $ 5,633 607 $ 793 85
========= ======= ======== ====== ======== ======
Investor C Shares:
Shares issued.......... $ 8 1 $ 29 3 $ 28 3
Dividends reinvested...
Shares redeemed........
--------- ------- -------- ------ -------- ------
Net increase........... $ 8 1 $ 29 3 $ 28 3
========= ======= ======== ====== ======== ======
Institutional Shares:
Shares issued.......... $ 39,011 4,059 $ 28,079 3,025 $ 74,315 8,012
Dividends reinvested... 3,436 360 1,304 141 21,319 2,313
Shares redeemed........ (81,782) (8,553) (20,816) (2,256) (78,662) (8,492)
--------- ------- -------- ------ -------- ------
Net increase
(decrease)............ $ (39,335) (4,134) $ 8,567 910 $ 16,972 1,833
========= ======= ======== ====== ======== ======
</TABLE>
Continued
95
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
4. CAPITAL SHARE TRANSACTIONS, CONTINUED
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN
MUNICIPAL MUNICIPAL
BOND FUND BOND FUND
---------------- ----------------
AMOUNT SHARES AMOUNT SHARES
-------- ------ -------- ------
<S> <C> <C> <C> <C>
For the six months ended December 31, 1995:
Investor A Shares:
Shares issued............................. $ 2,290 215 $ 2,080 191
Dividends reinvested...................... 151 14 585 54
Shares redeemed........................... (3,578) (337) (3,059) (280)
-------- ------ -------- ------
Net (decrease)............................ $ (1,137) (108) $ (394) (35)
======== ====== ======== ======
Investor B Shares:
Shares issued............................. $ 76 7 $ 697 64
Dividends reinvested...................... 6 1 37 3
Shares redeemed........................... (62) (6) (131) (12)
-------- ------ -------- ------
Net increase.............................. $ 20 2 $ 603 55
======== ====== ======== ======
Institutional Shares:
Shares issued............................. $ 9,864 938 $ 16,570 1,522
Dividends reinvested...................... 188 18 575 53
Shares redeemed........................... (11,451) (1,088) (14,233) (1,304)
-------- ------ -------- ------
Net increase (decrease)................... $ (1,399) (132) $ 2,912 271
======== ====== ======== ======
For the year ended June 30, 1995:
Investor A Shares:
Shares issued............................. $ 2,188 214 $ 4,484 427
Dividends reinvested...................... 515 51 1,320 126
Shares redeemed........................... (4,550) (446) (10,866) (1,040)
-------- ------ -------- ------
Net (decrease)............................ $ (1,847) (181) $ (5,062) (487)
======== ====== ======== ======
Investor B Shares:
Shares issued............................. $ 84 8 $ 1,198 113
Dividends reinvested...................... 14 1 45 4
Shares redeemed........................... (14) (1) (319) (30)
-------- ------ -------- ------
Net increase.............................. $ 84 8 $ 924 87
======== ====== ======== ======
Institutional Shares:
Shares issued............................. $ 21,923 2,150 $ 25,509 2,415
Dividends reinvested...................... 657 65 1,250 119
Shares redeemed (36,226) (3,596) (35,048) (3,362)
-------- ------ -------- ------
Net (decrease)............................ $(13,646) (1,381) $ (8,289) (828)
======== ====== ======== ======
</TABLE>
Continued
96
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to the Group by FIC. Gulfstream
Global Investors, Ltd. ("Gulfstream") serves as sub-investment adviser to the
Balanced Fund and the International Discovery Fund. Under the terms of the
investment advisory agreement, FIC is entitled to receive fees based on a
percentage of the average daily net assets of each Fund.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") are subsidiaries of the BISYS Group, Inc.
BISYS, with whom certain officers and trustees of the Group are affiliated,
serves the Group as Administrator. Such officers and trustees are paid no
fees directly by the Funds for serving as officers and trustees of the Group.
Under the terms of the administration agreement, BISYS's fees are computed at
0.20% of the average daily net assets of each Fund. BISYS also serves the
Group as distributor and is entitled to receive commissions on sales of
shares of the variable net asset value funds. For the six months ended
December 31, 1995, BISYS received $2,142,534 commissions from sales of shares
of the variable net asset value funds of which $102,734 was allowed to First
of America Brokerage Service, Inc., an affiliate of First of America and an
investment dealer of the Group's shares. BISYS receives no fees for providing
distribution services to the money market funds. BISYS Ohio serves the Group
as transfer agent and mutual fund accountant.
The Group has adopted an Investor A Distribution and Shareholder Service Plan
(the "Investor A Plan"), an Investor B Distribution and Shareholder Service
Plan (the "Investor B Plan"), and an Investor C Distribution and
Shareholder Service Plan (the "Investor C Plan"), each in accordance with
Rule 12b-1 under the 1940 Act. Pursuant to the Investor A Plan, each Fund is
authorized to pay or reimburse BISYS, as distributor of Investor A shares, a
periodic amount, calculated at an annual rate not to exceed 0.25% of the
average daily net assets of Investor A shares of that Fund. Pursuant to the
Investor B and Investor C Plans, each Fund is authorized to pay or reimburse
BISYS, as distributor of Investor B and Investor C shares, (a) a distribution
fee in an amount not to exceed on an annual basis 0.75% of the average daily
net assets of Investor B or Investor C shares of that Fund and (b) a service
fee in an amount not to exceed on an annual basis 0.25% of the average daily
net assets of Investor B or Investor C shares of that Fund. These fees may be
used by BISYS to pay banks, including affiliates of the investment adviser,
broker dealers and other institutions, or to reimburse BISYS or its
affiliates for administration, distribution, and shareholder service
assistance in connection with the distribution of Fund shares.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions for the
six months ended December 31, 1995 is as follows (amounts in thousands):
<TABLE>
<CAPTION>
U.S.
PRIME GOVERNMENT TAX-
OBLIGATIONS OBLIGATIONS TREASURY FREE
FUND FUND FUND FUND
----------- ----------- -------- -----
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average daily net as-
sets)............................... 0.40% 0.40% 0.40% 0.40%
Voluntary fee reductions............. $ 4 $ 2 $ 2 $ 1
ADMINISTRATION FEES:
Voluntary fee reductions............. $ 79 $ 43 $ 149 $ 16
12B-1 FEES INVESTOR A:
Voluntary Fee Reductions............. $ 95 $ 140 $ 79 $ 40
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES....................... $ 96 $ 57 $ 44 $ 34
</TABLE>
Continued
97
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
LARGE SMALL
HIGH INCOME CAPITALIZATION EQUITY CAPITALIZATION
EQUITY FUND FUND (A) FUND FUND
------------- -------------- --------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY
FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 1.00% 1.00% 1.00% 1.00%
Voluntary fee reduc-
tions.................. $ 6 $ 14 $ 10
ADMINISTRATION FEES:
Voluntary fee reduc-
tions.................. $ 1 $ 3 $ 2
12B-1 FEES INVESTOR B:
Voluntary Fee Reduc-
tions.................. $ 11 $ 10 $ 18
TRANSFER AGENT AND MU-
TUAL FUND ACCOUNTANT
FEES................... $142 $198 $162
<CAPTION>
INTERMEDIATE
INTERNATIONAL LIMITED GOVERNMENT
DISCOVERY MATURITY OBLIGATIONS
FUND BALANCED FUND BOND FUND FUND
------------- -------------- --------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY
FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... (b) 1.00% 0.74% 0.74%
Voluntary fee reduc-
tions.................. $ 27 $140 $ 17 $ 58
ADMINISTRATION FEES:
Voluntary fee reduc-
tions.................. $ 1 $ 5 $ 70
12B-1 FEES INVESTOR B:
Voluntary Fee Reduc-
tions.................. $ 8 $ 3 $ 2
TRANSFER AGENT AND MU-
TUAL FUND ACCOUNTANT
FEES................... $141 $ 82 $ 81 $100
<CAPTION>
U.S. MICHIGAN
GOVERNMENT MUNICIPAL MUNICIPAL BOND
INCOME FUND BOND FUND BOND FUND FUND
------------- -------------- --------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY
FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.74% 0.74% 0.74% 0.74%
Voluntary fee reduc-
tions.................. $262 $116 $142 $215
ADMINISTRATION FEES:
Voluntary fee reduc-
tions.................. $ 45 $139 $ 87 $113
12B-1 FEES INVESTOR B:
Voluntary Fee Reduc-
tions.................. $ 15 $ 2 $ 1 $ 3
TRANSFER AGENT AND MU-
TUAL FUND ACCOUNTANT
FEES................... $110 $135 $ 65 $ 91
</TABLE>
- -------
(a)For the period from December 28, 1995 (commencement of operations) through
December 31, 1995.
(b)Investment advisory fees for the International Discovery Fund are calculated
as 1.25% of the first $50 million, 1.20% of the next $50 million, 1.15% of
the next $50 million, and 1.05% over $400 million.
98
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
------------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1995
(UNAUDITED) YEAR ENDED JUNE 30,
--------------------------- ------------------------------------------------------------------------------------
1995 1994 1993 (A) 1992
------------------------ ------------------------ ------------------------ --------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment
Activities
Net investment
income......... 0.026 0.026 0.047 0.048 0.027 0.028 0.028 0.029 0.046
-------- -------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income......... (0.026) (0.026) (0.047) (0.048) (0.027) (0.028) (0.028) (0.029) (0.046)
-------- -------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return..... 2.62%(c) 2.67%(c) 4.81% 4.91% 2.75% 2.85% 2.89% 2.91% 4.75%
RATIOS/
SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $137,347 $677,389 $108,565 $640,380 $105,611 $561,697 $129,433 $478,821 $690,908
Ratio of expenses
to average net
assets.......... 0.74%(b) 0.64%(b) 0.75% 0.65% 0.74% 0.64% 0.66% 0.64% 0.64%
Ratio of net
investment
income to
average net
assets.......... 5.13%(b) 5.23%(b) 4.71% 4.83% 2.71% 2.84% 2.86% 2.88% 4.61%
Ratio of expenses
to average net
assets*......... 0.91%(b) 0.66%(b) 0.92% 0.67% 0.91% 0.66% 0.71% 0.66% 0.66%
Ratio of net
investment
income to
average net
assets*......... 4.96%(b) 5.21%(b) 4.54% 4.81% 2.54% 2.82% 2.81% 2.86% 4.59%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
99
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
-----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1995
(UNAUDITED) YEAR ENDED JUNE 30,
--------------------------- -----------------------------------------------------------------------------------
1995 1994 1993 (A) 1992
------------------------ ------------------------ ------------------------ --------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment
Activities
Net investment
income......... 0.026 0.026 0.047 0.048 0.027 0.028 0.028 0.028 0.044
Distributions
Net investment
income......... (0.026) (0.026) (0.047) (0.048) (0.027) (0.028) (0.028) (0.028) (0.044)
-------- -------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ======== ========
Total Return..... 2.60%(c) 2.65%(c) 4.76% 4.87% 2.69% 2.79% 2.84% 2.86% 4.78%
RATIOS/
SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $178,633 $217,316 $169,179 $227,565 $172,482 $192,612 $208,311 $223,855 $400,242
Ratio of expenses
to average net
assets.......... 0.74%(b) 0.64%(b) 0.77% 0.67% 0.77% 0.67% 0.66% 0.64% 0.64%
Ratio of net
investment
income to
average net
assets.......... 5.10%(b) 5.20%(b) 4.62% 4.76% 2.64% 2.74% 2.79% 2.81% 4.43%
Ratio of expenses
to average net
assets*......... 0.91%(b) 0.66%(b) 0.94% 0.69% 0.94% 0.69% 0.72% 0.66% 0.66%
Ratio of net
investment
income to
average net
assets*......... 4.93%(b) 5.18%(b) 4.45% 4.74% 2.47% 2.72% 2.73% 2.79% 4.41%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
100
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TREASURY FUND
----------------------------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1995 YEAR ENDED DECEMBER 1, 1993 TO
(UNAUDITED) JUNE 30, 1995 JUNE 30, 1994 (A)
--------------------------- ------------------------ ---------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- -------- ------- -------
Investment Activities
Net investment income.. 0.026 0.026 0.047 0.048 0.016 0.017
Distributions
Net investment income.. (0.026) (0.026) (0.047) (0.048) (0.016) (0.017)
------- -------- -------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======== ======== ======= =======
Total Return............ 2.63%(c) 2.68%(c) 4.81% 4.91% 1.66%(c) 1.72%(c)
RATIOS/ SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $94,931 $196,807 $105,391 $192,232 $56,535 $76,035
Ratio of expenses to
average net assets..... 0.73%(b) 0.63%(b) 0.75% 0.64% 0.64%(b) 0.54%(b)
Ratio of net investment
income to average net
assets................. 5.12%(b) 5.22%(b) 4.82% 4.95% 2.84%(b) 3.15%(b)
Ratio of expenses to
average net assets*.... 0.98%(b) 0.73%(b) 1.04% 0.78% 0.99%(b) 0.74%(b)
Ratio of net investment
income to average net
assets*................ 4.87%(b) 5.12%(b) 4.52% 4.81% 2.49%(b) 2.95%(b)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
101
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TAX-FREE FUND
-----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 -----------------------------------------------------------------------------------
(UNAUDITED) 1995 1994 1993 (A) 1992
--------------------------- ------------------------ ------------------------ ------------------------ --------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1,000 $ 1,000 $ 1,000
------- -------- ------- ------- ------- ------- ------- ------- --------
Investment
Activities
Net investment
income.......... 0.015 0.016 0.029 0.030 0.018 0.019 0.019 0.019 0.033
Distributions
Net investment
income.......... (0.015) (0.016) (0.029) (0.030) (0.018) (0.019) (0.019) (0.019) (0.033)
------- -------- ------- ------- ------- ------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ======= ======= ======= ======= ======= ========
Total Return..... 1.56%(c) 1.61%(c) 2.90% 3.00% 1.81% 1.92% 2.07% 2.10% 3.34%
RATIOS/
SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $74,985 $110,133 $45,102 $98,489 $48,256 $84,465 $54,886 $86,292 $141,913
Ratio of expenses
to average net
assets.......... 0.74%(b) 0.66%(b) 0.74% 0.64% 0.68% 0.58% 0.58% 0.55% 0.59%
Ratio of net
investment
income to
average net
assets.......... 3.08%(b) 3.15%(b) 2.88% 2.97% 1.81% 1.90% 2.05% 2.08% 3.29%
Ratio of expenses
to average net
assets*......... 0.92%(b) 0.67%(b) 0.95% 0.70% 0.93% 0.68% 0.72% 0.65% 0.69%
Ratio of net
investment
income to
average net
assets*......... 2.90%(b) 3.13%(b) 2.67% 2.91% 1.56% 1.80% 1.91% 1.98% 3.19%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
102
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
HIGH INCOME EQUITY FUND
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 --------------------------------------------------
(UNAUDITED) 1995
----------------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD......... $ 14.49 $14.47 $14.54 $ 14.49 $ 13.50 $13.49 $13.38 $ 13.50
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income........ 0.16 0.10 0.10 0.17 0.36 0.26 0.11 0.39
Net realized
and unrealized
gains from
investments..... 1.91 1.91 1.91 1.91 1.00 0.99 1.17 1.00
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities... 2.07 2.01 2.01 2.08 1.36 1.25 1.28 1.39
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.......... (0.16) (0.10) (0.09) (0.18) (0.36) (0.26) (0.11) (0.39)
In excess of
net investment
income.......... (0.01) (0.01) (0.01) (0.01)
Net realized
gains........... (0.44) (0.44) (0.44) (0.44)
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions... (0.60) (0.54) (0.53) (0.62) (0.37) (0.27) (0.12) (0.40)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 15.96 $15.94 $16.02 $ 15.95 $ 14.49 $14.47 $14.54 $ 14.49
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 14.34%(c) 13.99%(c) 13.95%(c) 14.50%(c) 10.32% 9.41% 9.71%(f) 10.55%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $77,135 $9,064 $ 84 $344,832 $71,063 $7,131 $ 25 $346,164
Ratio of
expenses to
average net
assets......... 1.55%(b) 2.30%(b) 2.29%(b) 1.30%(b) 1.54% 2.32% 2.30%(b) 1.32%
Ratio of net
investment
income to
average net
assets......... 2.06%(b) 1.08%(b) 1.44%(b) 2.31%(b) 2.65% 1.86% 1.88%(b) 2.86%
Ratio of
expenses to
average net
assets*........ 1.55%(b) 2.30%(b) 2.29%(b) 1.30%(b) 1.57% 2.57% 2.55%(b) 1.32%
Ratio of net
investment
income to
average net
assets*........ 2.06%(b) 1.08%(b) 1.44%(b) 2.31%(b) 2.61% 1.61% 1.62%(b) 2.86%
Portfolio
turnover (g)... 23.68% 23.68% 23.68% 23.68% 77.70% 77.70% 77.70% 77.70%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
103
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
HIGH INCOME EQUITY FUND, CONTINUED
---------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------
1994 1993 (A) 1992
---------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 14.69 $14.92 $ 14.69 $ 13.14 $ 13.14 $ 12.48
------- ------ -------- ------- -------- --------
Investment Activities
Net investment income.. 0.37 0.13 0.39 0.45 0.45 0.54
Net realized and
unrealized gains
(losses) from
investments........... (0.56) (1.43) (0.56) 1.69 1.69 0.99
------- ------ -------- ------- -------- --------
Total from Investment
Activities.............. (0.19) (1.30) (0.17) 2.14 2.14 1.53
------- ------ -------- ------- -------- --------
Distributions
Net investment income.. (0.37) (0.13) (0.39) (0.45) (0.45) (0.54)
Net realized gains..... (0.24) (0.24) (0.14) (0.14) (0.33)
In excess of net
realized gains.......... (0.39) (0.39)
------- ------ -------- ------- -------- --------
Total Distributions... (1.00) (0.13) (1.02) (0.59) (0.59) (0.87)
------- ------ -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 13.50 $13.49 $ 13.50 $ 14.69 $ 14.69 $ 13.14
======= ====== ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)................ (1.63)% (8.76)% (1.53)% 16.71% 16.73% 12.56%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $76,108 $3,836 $355,538 $50,000 $384,240 $270,549
Ratio of expenses to
average net assets..... 1.40% 2.33%(b) 1.30% 1.29% 1.26% 1.19%
Ratio of net investment
income to average net
assets................. 2.56% 1.87%(b) 2.64% 3.24% 3.28% 4.12%
Ratio of expenses to
average net assets*.... 1.55% 2.59%(b) 1.30% 1.36% 1.28% 1.27%
Ratio of net investment
income to average net
assets*................ 2.41% 1.61%(b) 2.64% 3.17% 3.25% 4.03%
Portfolio turnover (g).. 69.35% 69.35% 69.35% 67.26% 67.26% 68.42%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
104
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LARGE
CAPITALIZATION
FUND
-----------------
DECEMBER 28, 1995
TO DECEMBER 31,
1995 (A)
(UNAUDITED)
-----------------
INSTITUTIONAL
-----------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.......................................... $ 10.00
-------
Investment Activities
Net realized and unrealized gains from investments 0.02
-------
Total from Investment Activities............................ 0.02
-------
NET ASSET VALUE,
END OF PERIOD................................................ $ 10.02
=======
Total Return (excludes sales and redemption charges).......... 0.20%(c)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................. $20,596
Ratio of expenses to average net assets....................... 1.27%(b)
Ratio of net investment income to average net assets.......... 5.53%(b)
Portfolio turnover............................................ 0.00%
</TABLE>
- -------
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
105
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY FUND
----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 ----------------------------------------------------
(UNAUDITED) 1995
-------------------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 16.56 $16.35 $16.40 $ 16.62 $ 14.69 $14.63 $16.29 $ 14.70
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
loss.......... (0.01) (0.09) (0.09) 0.01 (0.12) (0.11) (0.02) (0.08)
Net realized
and unrealized
gains from
investments... 2.17 2.17 2.17 2.17 3.46 3.30 1.60 3.47
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 2.16 2.06 2.08 2.18 3.34 3.19 1.58 3.39
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net realized
gains........... (0.66) (0.66) (0.66) (0.66) (0.48) (0.48) -- (0.49)
In excess of
net realized
gains......... (0.99) (0.99) (1.47) (0.98)
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions... (0.66) (0.66) (0.66) (0.66) (1.47) (1.47) (1.47) (1.47)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 18.06 $17.75 $17.82 $ 18.14 $ 16.56 $16.35 $16.40 $ 16.62
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 12.99%(c) 12.55%(c) 12.63%(c) 13.07%(c) 24.85% 23.88% 23.56%(f) 25.20%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $52,417 $9,557 $ 416 $754,414 $43,803 $6,073 $ 153 $683,320
Ratio of
expenses to
average net
assets......... 1.53%(b) 2.28%(b) 2.28%(b) 1.29%(b) 1.51% 2.29% 2.27%(b) 1.29%
Ratio of net
investment loss
to average net
assets......... (0.83)%(b) (1.57)%(b) (1.57)%(b) (0.58)%(b) (0.87)% (1.61)% (1.43)%(b) (0.64)%
Ratio of
expenses to
average net
assets*........ 1.54%(b) 2.29%(b) 2.29%(b) 1.29%(b) 1.54% 2.54% 2.53%(b) 1.29%
Ratio of net
investment loss
to average net
assets*........ (0.84)%(b) (1.58)%(b) (1.58)%(b) (0.58)%(b) (0.90)% (1.87)% (1.70)%(b) (0.65)%
Portfolio
turnover(g).... 19.69% 19.69% 19.69% 19.69% 46.39% 46.39% 46.39% 46.39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
106
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY FUND, CONTINUED
-----------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------------------
1994 1993 (A) 1992
------------------------------------------ ------------------------- --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 15.11 $ 16.66 $ 15.10 $ 12.80 $ 12.80 $ 11.69
------- ------- -------- ------- -------- --------
Investment Activities
Net investment income
(loss).................. (0.10) (0.05) (0.11) (0.01) (0.01) 0.17
Net realized and
unrealized gains
(losses) from
investments........... (0.28) (1.98) (0.25) 2.74 2.73 1.59
------- ------- -------- ------- -------- --------
Total from Investment
Activities.............. (0.38) (2.03) (0.36) 2.73 2.72 1.76
------- ------- -------- ------- -------- --------
Distributions
Net investment income.. (0.02) (0.02) (0.17)
Net realized gains..... (0.04) (0.04) (0.40) (0.40) (0.48)
------- ------- -------- ------- -------- --------
Total Distributions... (0.04) (0.04) (0.42) (0.42) (0.65)
------- ------- -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 14.69 $ 14.63 $ 14.70 $ 15.11 $ 15.10 $ 12.80
======= ======= ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... (2.57)% (12.18)% (2.44)% 21.42% 21.34% 15.18%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $36,108 $ 1,616 $533,260 $26,460 $595,127 $407,782
Ratio of expenses to
average net assets..... 1.38% 2.30%(b) 1.28% 1.28% 1.24% 1.18%
Ratio of net investment
income (loss) to
average net assets..... (0.75)% (1.57)%(b) (0.65)% (0.12)% (0.09)% 1.24%
Ratio of expenses to
average net assets*.... 1.53% 2.56%(b) 1.28% 1.35% 1.27% 1.26%
Ratio of net investment
income (loss) to
average net assets*.... (0.90)% (1.83)%(b) (0.65)% (0.19)% (0.11)% 1.15%
Portfolio turnover (g).. 70.87% 70.87% 70.87% 66.48% 66.48% 93.76%
</TABLE>
See notes to financial statements.
107
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
-----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 ----------------------------------------------------
(UNAUDITED) 1995
--------------------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 25.88 $ 25.79 $25.91 $ 26.08 $ 19.75 $19.83 $24.17 $ 19.83
-------- ------- ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income (loss). (0.01) (0.10) (0.08) 0.03 (0.18) (0.19) (0.05) (0.25)
Net realized
and unrealized
gains from
investments... 4.47 4.47 4.47 4.47 8.46 8.30 3.94 8.65
-------- ------- ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 4.46 4.37 4.39 4.50 8.28 8.11 3.89 8.40
-------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net realized
gains........... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15)
-------- ------- ------ -------- ------- ------ ------ --------
Total
Distributions... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15)
-------- ------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 26.69 $ 26.51 $26.65 $ 26.93 $ 25.88 $25.79 $25.91 $ 26.08
======== ======= ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 17.11%(c) 16.83%(c) 16.84%(c) 17.11%(c) 44.88% 43.78% 44.37% 45.32%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $101,591 $16,671 $ 582 $422,675 $71,894 $9,990 $ 224 $354,825
Ratio of
expenses to
average net
assets......... 1.54%(b) 2.29%(b) 2.29%(b) 1.30%(b) 1.55% 2.32% 3.53%(b) 1.33%
Ratio of net
investment loss
to average net
assets......... (1.15)%(b) (1.90)%(b) (1.89)%(b) (0.92)%(b) (1.27)% (2.03)% (3.06)%(b) (1.06)%
Ratio of
expenses to
average net
assets*........ 1.55%(b) 2.30%(b) 2.29%(b) 1.30%(b) 1.58% 2.55% 3.53%(b) 1.33%
Ratio of net
investment loss
to average net
assets*........ (1.16)%(b) (1.91)%(b) (1.89)%(b) (0.92)%(b) (1.30)% (2.26)% (3.06)%(b) (1.06)%
Portfolio
turnover(g).... 35.88% 35.88% 35.88% 35.88% 50.53% 50.53% 50.53% 50.53%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
108
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND, CONTINUED
-----------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------------------
1994 1993 (A) 1992
------------------------------------------ ------------------------- --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 20.31 $ 22.71 $ 20.31 $ 14.64 $ 14.64 $ 13.58
------- ------- -------- ------- -------- --------
Investment Activities
Net investment loss.... (0.15) (0.09) (0.28) (0.13) (0.14) (0.08)
Net realized and
unrealized gains
(losses) from
investments........... 0.09 (2.79) 0.30 6.75 6.76 1.89
------- ------- -------- ------- -------- --------
Total from Investment
Activities.............. (0.06) (2.88) 0.02 6.62 6.62 1.81
------- ------- -------- ------- -------- --------
Distributions
Net investment income..
Net realized gains..... (0.50) (0.50) (0.95) (0.95) (0.75)
------- ------- -------- ------- -------- --------
Total Distributions... (0.50) (0.50) (0.95) (0.95) (0.75)
------- ------- -------- ------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 19.75 $ 19.83 $ 19.83 $ 20.31 $ 20.31 $ 14.64
======= ======= ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... (0.55)% (12.68)% (0.15)% 45.77% 45.77% 12.95%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $42,791 $ 2,130 $271,425 $27,976 $291,462 $180,079
Ratio of expenses to
average net assets..... 1.40% 2.35%(b) 1.30% 1.29% 1.26% 1.19%
Ratio of net investment
loss to average net
assets................. (1.24)% (2.19)%(b) (1.14)% (1.02)% (0.98)% (0.61)%
Ratio of expenses to
average net assets*.... 1.55% 2.61%(b) 1.30% 1.36% 1.28% 1.28%
Ratio of net investment
loss to average net
assets*................ (1.39)% (2.45)%(b) (1.14)% (1.09)% (1.01)% (0.70)%
Portfolio turnover (g).. 72.64% 72.64% 72.64% 71.21% 71.21% 95.02%
</TABLE>
See notes to financial statements.
109
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
----------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 ----------------------------------------------------
(UNAUDITED) 1995
-------------------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 12.23 $12.15 $12.42 $ 12.33 $ 13.18 $13.21 $12.97 $ 13.24
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income (loss). (0.02) (0.11) (0.09) (0.04) (0.03) (0.04) 0.03 0.04
Net realized
and unrealized
gains (losses)
from
investments
and foreign
currencies.... 0.42 0.42 0.42 0.42 (0.36) (0.40) 0.04 (0.33)
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 0.40 0.31 0.33 0.38 (0.33) (0.44) 0.07 (0.29)
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net realized
gains........... (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions... 0.00 0.00 0.00 0.00 (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 12.63 $12.46 $12.75 $ 12.71 $ 12.23 $12.15 $12.42 $ 12.33
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 3.35%(c) 2.63%(c) 2.89%(c) 3.37%(c) (2.19)% (3.03)% (1.15)%(g) (1.86)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $35,864 $6,538 $ 230 $284,511 $34,228 $5,469 $ 82 $264,759
Ratio of
expenses to
average net
assets......... 1.81%(b) 2.56%(b) 2.43%(b) 1.56%(b) 1.78% 2.57% 2.32%(b) 1.56%
Ratio of net
investment
income (loss)
to average net
assets......... (0.29)%(b) (1.07)%(b) (1.18)%(b) (0.05)%(b) 0.08% (0.49)% 1.74%(b) 0.31%
Ratio of
expenses to
average net
assets*........ 1.89%(b) 2.57%(b) 2.57%(b) 1.57%(b) 1.91% 2.92% 3.27%(b) 1.59%
Ratio of net
investment
income (loss)
to average net
assets*........ (0.37)%(b) (1.08)%(b) (1.32)%(b) (0.06)%(b) (0.06)% (0.84)% 0.79%(b) 0.28%
Portfolio
turnover (h)... 28.91% 28.91% 28.91% 28.91% 104.39% 104.39% 104.39% 104.39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operation.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
110
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND, CONTINUED
---------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------- DECEMBER 29, 1992 TO
1994 JUNE 30, 1993 (A)(F)
----------------------------------------- ---------------------------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.50 $14.12 $ 11.54 $10.00 $ 10.00
------- ------ -------- ------ --------
Investment Activities
Net investment income
(loss).................. (0.02) (0.01) (0.01) 0.03 0.04
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.... 1.74 (0.90) 1.75 1.48 1.51
------- ------ -------- ------ --------
Total from Investment
Activities.............. 1.72 (0.91) 1.74 1.51 1.55
------- ------ -------- ------ --------
Distributions
Net investment income.. (0.02) (0.02) (0.01) (0.01)
Net realized gains..... (0.02) (0.02)
------- ------ -------- ------ --------
Total Distributions... (0.04) (0.04) (0.01) (0.01)
------- ------ -------- ------ --------
NET ASSET VALUE,
END OF PERIOD.......... $ 13.18 $13.21 $ 13.24 $11.50 $ 11.54
======= ====== ======== ====== ========
Total Return (excludes
sales and redemption
charges)............... 14.99% (6.44)% 15.12% 15.11% 15.52%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $36,297 $2,680 $261,798 $8,353 $114,822
Ratio of expenses to
average net assets..... 1.63% 2.56%(b) 1.52% 1.64%(b) 1.58%(b)
Ratio of net investment
income (loss) to
average net assets..... (0.29)% (0.22)%(b) (0.30)% (1.02)%(b) 0.82%(b)
Ratio of expenses to
average net assets*.... 1.84% 2.61%(b) 1.57% 1.81%(b) 1.63%(b)
Ratio of net investment
income (loss) to
average net assets*.... (0.49)% (0.27)%(b) (0.35)% 0.85%(b) 0.77%(b)
Portfolio turnover(h)... 37.23% 37.23% 37.23% 12.47% 12.47%
</TABLE>
See notes to financial statements.
111
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED FUND
------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 ---------------------------------------------------
(UNAUDITED) 1995
------------------------------------------------------- ---------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 12.19 $ 12.18 $ 12.12 $ 12.19 $ 10.67 $ 10.67 $ 11.13 $ 10.67
------- ------- ------- ------- ------- ------- ------- -------
Investment
Activities
Net investment
income.......... 0.13 0.11 0.10 0.17 0.28 0.20 0.09 0.31
Net realized and
unrealized
gains from
investments.... 0.94 0.94 0.94 0.94 1.69 1.67 1.16 1.68
------- ------- ------- ------- ------- ------- ------- -------
Total from
Investment
Activities...... 1.07 1.05 1.04 1.11 1.97 1.87 1.25 1.99
------- ------- ------- ------- ------- ------- ------- -------
Distributions
Net investment
income.......... (0.15) (0.12) (0.12) (0.19) (0.29) (0.20) (0.10) (0.31)
Net realized
gains........... (0.57) (0.57) (0.57) (0.57) (0.01) (0.06) (0.03)
In excess of net
realized gains. (0.15) (0.10) (0.16) (0.13)
------- ------- ------- ------- ------- ------- ------- -------
Total
Distributions.... (0.72) (0.69) (0.69) (0.76) (0.45) (0.36) (0.26) (0.47)
------- ------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD... $ 12.54 $ 12.54 $ 12.47 $ 12.54 $ 12.19 $ 12.18 $ 12.12 $ 12.19
======= ======= ======= ======= ======= ======= ======= =======
Total Return
(excludes sales
and redemption
charges)........ 9.15%(c) 8.82%(c) 8.78%(c) 9.30%(c) 18.96% 17.96% 17.53%(h) 19.22%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $14,941 $ 2,571 $ 204 $97,194 $12,849 $ 1,291 $ 114 $89,294
Ratio of expenses
to average net
assets.......... 1.39%(b) 2.14%(b) 2.14%(b) 1.15%(b) 1.47% 2.25% 2.16%(b) 1.25%
Ratio of net
investment
income to
average net
assets.......... 2.34%(b) 1.59%(b) 1.59%(b) 2.59%(b) 2.54% 1.74% 1.65%(b) 2.75%
Ratio of expenses
to average net
assets*......... 1.65%(b) 2.40%(b) 2.40%(b) 1.40%(b) 1.78% 2.77% 2.68%(b) 1.52%
Ratio of net
investment
income to
average net
assets*......... 2.08%(b) 1.33%(b) 1.33%(b) 2.34%(b) 2.23% 1.22% 1.13%(b) 2.47%
Portfolio
turnover(g)..... 178.18% 178.18% 178.18% 178.18% 250.66% 250.66% 250.66% 250.66%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
Continued
112
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED FUND, CONTINUED
-----------------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------- JANUARY 31,
1994 1993 (A) 1992 TO
---------------------------------------- ------------------------ JUNE 30,
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL 1992 (F)
---------- -------------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.09 $11.71 $ 11.08 $ 9.68 $ 9.68 $ 10.00
------- ------ ------- ------ ------- -------
Investment Activities
Net investment income.. 0.26 0.10 0.27 0.28 0.28 0.14
Net realized and
unrealized gains
(losses) from
investments........... (0.43) (1.05) (0.41) 1.42 1.41 (0.34)
------- ------ ------- ------ ------- -------
Total from Investment
Activities.............. (0.17) (0.95) (0.14) 1.70 1.69 (0.20)
------- ------ ------- ------ ------- -------
Distributions
Net investment income.. (0.25) (0.09) (0.27) (0.29) (0.29) (0.12)
------- ------ ------- ------ ------- -------
Total Distributions... (0.25) (0.09) (0.27) (0.29) (0.29) (0.12)
------- ------ ------- ------ ------- -------
NET ASSET VALUE,
END OF PERIOD.......... $ 10.67 $10.67 $ 10.67 $11.09 $ 11.08 $ 9.68
======= ====== ======= ====== ======= =======
Total Return (excludes
sales and redemption
charges)............... (1.63)% (8.16)% (1.44)% 17.74% 17.66% (2.06)%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $11,901 $ 744 $71,427 $6,115 $42,318 $38,136
Ratio of expenses to
average net assets..... 1.18% 2.05%(b) 1.09% 1.18% 1.15% 1.19%(b)
Ratio of net investment
income to average net
assets................. 2.38% 1.94%(b) 2.49% 2.66% 2.70% 3.46%(b)
Ratio of expenses to
average net assets*.... 1.63% 2.61%(b) 1.39% 1.53% 1.46% 1.50%(b)
Ratio of net investment
income to average net
assets*................ 1.93% 1.38%(b) 2.18% 2.31% 2.40% 3.13%(b)
Portfolio turnover (g).. 192.39% 192.39% 192.39% 177.99% 177.99% 47.58%
</TABLE>
See notes to financial statements.
113
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 --------------------------------------------------
(UNAUDITED) 1995
----------------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.35 $ 9.57
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income........ 0.31 0.26 0.27 0.32 0.56 0.49 0.20 0.58
Net realized
and unrealized
gains from
investments... 0.04 0.04 0.04 0.04 0.13 0.12 0.17 0.13
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 0.35 0.30 0.31 0.36 0.69 0.61 0.37 0.71
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.......... (0.33) (0.28) (0.30) (0.34) (0.55) (0.47) (0.19) (0.57)
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions... (0.33) (0.28) (0.30) (0.34) (0.55) (0.47) (0.19) (0.57)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 9.73 $ 9.72 $ 9.54 $ 9.73 $ 9.71 $ 9.70 $ 9.53 $ 9.71
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 3.90%(c) 3.52%(c) 3.57%(c) 4.07%(c) 7.53% 6.68% 3.58%(f) 7.76%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $16,737 $1,008 $ 7 $139,701 $18,930 $ 892 $141,781
Ratio of
expenses to
average net
assets......... 1.34%(b) 2.06%(b) 2.07%(b) 1.08%(b) 1.05% 1.85% 1.18%(b) 0.84%
Ratio of net
investment
income to
average net
assets......... 12.10%(b) 10.61%(b) 10.28%(b) 12.59%(b) 5.89% 5.14% 5.61%(b) 6.11%
Ratio of
expenses to
average net
assets*........ 1.34%(b) 2.06%(b) 2.07%(b) 1.08%(b) 1.36% 2.36% 1.18%(b) 1.11%
Ratio of net
investment
income to
average net
assets*........ 12.10%(b) 10.61%(b) 10.28%(b) 12.59%(b) 5.58% 4.62% 5.61%(b) 5.84%
Portfolio
turnover (g)... 280.14% 280.14% 280.14% 280.14% 397.97% 397.97% 397.97% 397.97%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
114
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND, CONTINUED
-------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------
1994 1993 (A) 1992
--------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.18 $ 9.99 $ 10.18 $ 10.25 $ 10.25 $ 9.93
------- ------ -------- ------- -------- --------
Investment Activities
Net investment income.. 0.62 0.23 0.64 0.65 0.65 0.71
Net realized and
unrealized gains
(losses) from
investments........... (0.58) (0.44) (0.59) 0.13 0.13 0.35
------- ------ -------- ------- -------- --------
Total from Investment
Activities.............. 0.04 (0.21) 0.05 0.78 0.78 1.06
------- ------ -------- ------- -------- --------
Distributions
Net investment income.. (0.61) (0.22) (0.62) (0.69) (0.69) (0.71)
Net realized gains..... (0.16) (0.16) (0.03)
In excess of net
realized gains.......... (0.04) (0.04)
------- ------ -------- ------- -------- --------
Total Distributions... (0.65) (0.22) (0.66) (0.85) (0.85) (0.74)
------- ------ -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.57 $ 9.56 $ 9.57 $ 10.18 $ 10.18 $ 10.25
======= ====== ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... 0.32% (2.09)% 0.43% 7.96% 7.98% 11.00%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $24,907 $ 629 $156,678 $18,060 $141,706 $117,241
Ratio of expenses to
average net assets..... 0.86% 1.78%(b) 0.76% 0.75% 0.72% 0.83%
Ratio of net investment
income to average net
assets................. 6.22% 5.36%(b) 6.32% 6.41% 6.45% 7.13%
Ratio of expenses to
average net assets*.... 1.30% 2.33%(b) 1.05% 1.08% 1.01% 1.05%
Ratio of net investment
income to average net
assets*................ 5.78% 4.81%(b) 6.03% 6.08% 6.16% 6.91%
Portfolio turnover (g).. 353.28% 353.28% 353.28% 123.10% 123.10% 87.75%
</TABLE>
See notes to financial statements.
115
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 --------------------------------------------------
(UNAUDITED) 1995
----------------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.42 $ 9.62
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income........ 0.27 0.24 0.23 0.28 0.50 0.43 0.18 0.52
Net realized
and unrealized
gains from
investments... 0.10 0.10 0.10 0.10 0.31 0.30 0.33 0.31
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 0.37 0.34 0.33 0.38 0.81 0.73 0.51 0.83
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.......... (0.27) (0.23) (0.24) (0.28) (0.50) (0.44) (0.17) (0.52)
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions... (0.27) (0.23) (0.24) (0.28) (0.50) (0.44) (0.17) (0.52)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 10.03 $10.00 $ 9.85 $ 10.03 $ 9.93 $ 9.89 $ 9.76 $ 9.93
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 4.43%(c) 4.04%(c) 3.93%(c) 4.47%(c) 8.69% 7.84% 5.21%(f) 9.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $25,973 $1,443 $ 38 $248,215 $27,521 $ 977 $ 9 $249,169
Ratio of
expenses to
average net
assets......... 1.21%(b) 1.96%(b) 1.95%(b) 0.96%(b) 1.25% 2.06% 2.09%(b) 1.04%
Ratio of net
investment
income (loss)
to average net
assets......... 5.42%(b) 4.65%(b) 4.64%(b) 5.67%(b) 5.22% 4.41% 4.24%(b) 5.43%
Ratio of
expenses to
average net
assets*........ 1.31%(b) 2.06%(b) 2.05%(b) 1.06%(b) 1.41% 2.42% 2.36%(b) 1.16%
Ratio of net
investment
income (loss)
to average net
assets*........ 5.32%(b) 4.55%(b) 4.54%(b) 5.57%(b) 5.07% 4.05% 3.98%(b) 5.31%
Portfolio
turnover (g)... 293.52% 293.52% 293.52% 293.52% 549.13% 549.13% 549.13% 549.13%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
116
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND, CONTINUED
---------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------
1994 1993 (A) 1992
----------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.53 $ 10.14 $ 10.53 $ 10.42 $ 10.42 $ 10.05
------- ------- -------- ------- -------- --------
Investment Activities
Net investment income.. 0.59 0.21 0.60 0.68 0.68 0.71
Net realized and
unrealized gains
(losses) from
investments........... (0.66) (0.54) (0.66) 0.21 0.22 0.46
------- ------- -------- ------- -------- --------
Total from Investment
Activities.............. (0.07) (0.33) (0.06) 0.89 0.90 1.17
------- ------- -------- ------- -------- --------
Distributions
Net investment income.. (0.59) (0.21) (0.60) (0.73) (0.73) (0.71)
Net realized gains..... (0.05) (0.06) (0.09)
In excess of net
realized gains.......... (0.25) (0.25)
------- ------- -------- ------- -------- --------
Total Distributions... (0.84) (0.21) (0.85) (0.78) (0.79) (0.80)
------- ------- -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.62 $ 9.60 $ 9.62 $ 10.53 $ 10.53 $ 10.42
======= ======= ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... (0.90)% (3.31)% (0.80)% 8.92% 8.94% 12.03%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $36,106 $ 531 $281,232 $37,055 $272,607 $234,906
Ratio of expenses to
average net assets..... 1.00% 1.92%(b) 0.90% 0.90% 0.87% 0.87%
Ratio of net investment
income to average net
assets................. 5.80% 4.80%(b) 5.90% 6.51% 6.54% 7.07%
Ratio of expenses to
average net assets*.... 1.29% 2.32%(b) 1.04% 1.08% 1.01% 1.01%
Ratio of net investment
income to average net
assets*................ 5.51% 4.41%(b) 5.76% 6.33% 6.40% 6.93%
Portfolio turnover (g).. 546.06% 546.06% 546.06% 225.90% 225.90% 114.76%
</TABLE>
See notes to financial statements.
117
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 --------------------------------------------------
(UNAUDITED) 1995
------------------------------------------------------ --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.42 $ 9.39 $ 9.36 $ 9.42 $ 9.41 $ 9.38 $ 9.12 $ 9.41
------- ------- ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income........ 0.37 0.34 0.34 0.38 0.75 0.68 0.28 0.76
Net realized
and unrealized
gains from
investments... 0.13 0.13 0.13 0.13 0.01 0.24 0.01
------- ------- ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 0.50 0.47 0.47 0.51 0.75 0.69 0.52 0.77
------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.......... (0.37) (0.34) (0.34) (0.38) (0.66) (0.61) (0.25) (0.68)
Tax return of
capital......... (0.08) (0.07) (0.03) (0.08)
------- ------- ------ -------- ------- ------ ------ --------
Total
Distributions... (0.37) (0.34) (0.34) (0.38) (0.74) (0.68) (0.28) (0.76)
------- ------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.. $ 9.55 $ 9.52 $ 9.49 $ 9.55 $ 9.42 $ 9.39 $ 9.36 $ 9.42
======= ======= ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)....... 5.46%(c) 5.09%(c) 5.10%(c) 5.58%(c) 8.46% 7.71% 5.26%(h) 8.70%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $53,047 $14,130 $ 30 $122,366 $50,931 $8,478 $ 29 $110,190
Ratio of
expenses to
average net
assets......... 1.02%(b) 1.76%(b) 1.76%(b) 0.77%(b) 1.04% 1.83% 2.88%(b) 0.83%
Ratio of net
investment
income to
average net
assets......... 7.76%(b) 7.00%(b) 7.00%(b) 8.01%(b) 8.03% 7.28% 11.54%(b) 8.25%
Ratio of
expenses to
average net
assets*........ 1.36%(b) 2.11%(b) 2.11%(b) 1.11%(b) 1.44% 2.44% 2.88%(b) 1.19%
Ratio of net
investment
income to
average net
assets*........ 7.42%(b) 6.65%(b) 6.65%(b) 7.67%(b) 7.63% 6.67% 11.54%(b) 7.89%
Portfolio
turnover (g)... 111.66% 111.66% 111.66% 111.66% 114.71% 114.71% 114.71% 114.71%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
Continued
118
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND, CONTINUED
-------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------- NOVEMBER 12, 1992 TO
1994 JUNE 30, 1993 (A)(F)
--------------------------------------- ---------------------------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.04 $ 9.88 $ 10.04 $ 10.00 $ 10.00
------- ------ -------- ------- -------
Investment Activities
Net investment income.. 0.74 0.28 0.74 0.48 0.48
Net realized and
unrealized gains
(losses) from
investments............. (0.64) (0.50) (0.63) 0.04 0.04
------- ------ ------- -------
Total from Investment
Activities.............. 0.10 (0.22) 0.11 0.52 0.52
------- ------ -------- ------- -------
Distributions
Net investment income.. (0.72) (0.27) (0.73) (0.48) (0.48)
Tax return of capital.. (0.01) (0.01) (0.01)
------- ------ -------- ------- -------
Total Distributions... (0.73) (0.28) (0.74) (0.48) (0.48)
------- ------ -------- ------- -------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.41 $ 9.38 $ 9.41 $ 10.04 $ 10.04
======= ====== ======== ======= =======
Total Return (excludes
sales and redemption
charges)................ 0.94% (2.26)% 1.04% 5.35% 5.37%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $54,027 $2,787 $101,506 $32,633 $71,862
Ratio of expenses to
average net assets..... 0.82% 1.77%(b) 0.72% 0.75%(b) 0.70%(b)
Ratio of net investment
income to average net
assets................. 7.42% 6.72%(b) 7.51% 7.41%(b) 7.49%(b)
Ratio of expenses to
average net assets*.... 1.36% 2.42%(b) 1.11% 1.23%(b) 1.09%(b)
Ratio of net investment
income to average net
assets*................ 6.87% 6.08%(b) 7.12% 6.93%(b) 7.09%(b)
Portfolio turnover (g).. 102.24% 102.24% 102.24% 135.06% 135.06%
</TABLE>
See notes to financial statements.
119
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND
-----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 ---------------------------------------------------
(UNAUDITED) 1995
----------------------------------------------------- ---------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.02 $ 9.29
------- ------ ------ -------- ------- ------- ------- --------
Investment
Activities
Net investment
income........ 0.28 0.24 0.24 0.29 0.58 0.52 0.22 0.61
Net realized
and unrealized
gains from
investments... 0.27 0.27 0.27 0.27 0.38 0.42 0.62 0.43
------- ------ ------ -------- ------- ------- ------- --------
Total from
Investment
Activities..... 0.55 0.51 0.51 0.56 0.96 0.94 0.84 1.04
------- ------ ------ -------- ------- ------- ------- --------
Distributions
Net investment
income.......... (0.29) (0.25) (0.26) (0.30) (0.58) (0.52) (0.22) (0.61)
In excess of
net investment
income........ (0.01)
------- ------ ------ -------- ------- ------- ------- --------
Total
Distributions... (0.29) (0.25) (0.26) (0.30) (0.59) (0.52) (0.22) (0.61)
------- ------ ------ -------- ------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD.. $ 9.93 $ 9.94 $ 9.89 $ 9.98 $ 9.67 $ 9.68 $ 9.64 $ 9.72
======= ====== ====== ======== ======= ======= ======= ========
Total Return
(excludes sales
and redemption
charges)....... 5.93%(c) 5.54%(c) 5.49%(c) 6.03%(c) 10.85% 10.62% 8.41%(f) 11.78%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at
end of period
(000).......... $18,720 $2,303 $ 91 $547,586 $17,572 $ 1,330 $ 28 $509,189
Ratio of
expenses to
average net
assets......... 1.19%(b) 1.94%(b) 1.93%(b) 0.94%(b) 1.24% 2.03% 1.99%(b) 1.02%
Ratio of net
investment
income to
average net
assets......... 5.70%(b) 4.93%(b) 4.90%(b) 5.95%(b) 6.32% 5.54% 5.62%(b) 6.54%
Ratio of
expenses to
average net
assets*........ 1.29%(b) 2.04%(b) 2.03%(b) 1.04%(b) 1.39% 2.39% 2.26%(b) 1.14%
Ratio of net
investment
income to
average net
assets*........ 5.60%(b) 4.83%(b) 4.80%(b) 5.85%(b) 6.17% 5.18% 5.36%(b) 6.42%
Portfolio
turnover (g)... 620.56% 620.56% 620.56% 620.56% 1010.64% 1010.64% 1010.64% 1010.64%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
120
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND, CONTINUED
--------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------
1994 1993 (A) 1992
---------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.54 $ 9.95 $ 10.53 $ 10.54 $ 10.54 $ 10.07
------- ------ -------- ------- -------- --------
Investment Activities
Net investment income . 0.59 0.22 0.60 0.71 0.71 0.75
Net realized and
unrealized gains
(losses) from
investments........... (0.72) (0.70) (0.72) 0.47 0.46 0.56
------- ------ -------- ------- -------- --------
Total from Investment
Activities.............. (0.13) (0.48) (0.12) 1.18 1.17 1.31
------- ------ -------- ------- -------- --------
Distributions
Net investment income.. (0.57) (0.21) (0.58) (0.73) (0.73) (0.76)
Net realized gains..... (0.45) (0.45) (0.08)
In excess of net
realized gains.......... (0.54) (0.54)
------- ------ -------- ------- -------- --------
Total Distributions... (1.11) (0.21) (1.12) (1.18) (1.18) (0.84)
------- ------ -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.30 $ 9.26 $ 9.29 $ 10.54 $ 10.53 $ 10.54
======= ====== ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... (1.62)% (4.84)% (1.52)% 11.93% 11.84% 13.47%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $18,391 $ 485 $469,903 $18,562 $442,291 $477,526
Ratio of expenses to
average net assets..... 0.98% 1.89%(b) 0.88% 0.89% 0.87% 0.87%
Ratio of net investment
income to average net
assets................. 5.86% 5.34%(b) 5.97% 6.47% 6.50% 7.19%
Ratio of expenses to
average net assets*.... 1.27% 2.29%(b) 1.02% 1.07% 1.01% 1.01%
Ratio of net investment
income to average net
assets*................ 5.57% 4.94%(b) 5.83% 6.29% 6.36% 7.05%
Portfolio turnover(g)... 893.27% 893.27% 893.27% 443.98% 443.98% 289.38%
</TABLE>
See notes to financial statements.
121
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND
------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 -----------------------------------------------------
(UNAUDITED) 1995
---------------------------------------- -----------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E)(G) INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 10.39 $10.36 $ 10.39 $ 10.29 $10.26 $ 9.88 $ 10.29
------- ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income (loss).. 0.20 0.16 0.22 0.41 0.33 (0.03) 0.46
Net realized and
unrealized
gains from
investments.... 0.33 0.33 0.33 0.27 0.27 0.65 0.27
------- ------ -------- ------- ------ ------ --------
Total from
Investment
Activities...... 0.53 0.49 0.55 0.68 0.60 0.62 0.73
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment
income........... (0.20) (0.16) (0.22) (0.41) (0.33) (0.14) (0.46)
In excess of net
realized gains... (0.17) (0.17) (0.16) (0.17)
------- ------ -------- ------- ------ ------ --------
Total
Distributions.... (0.20) (0.16) (0.22) (0.58) (0.50) (0.30) (0.63)
------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 10.72 $10.69 $ 10.72 $ 10.39 $10.36 $10.20 $ 10.39
======= ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)........ 5.19%(c) 4.80%(c) 5.33%(c) 7.02% 6.17% 3.47%(f) 7.25%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $10,589 $ 482 $137,678 $11,378 $ 447 $134,784
Ratio of expenses
to average net
assets.......... 1.03%(b) 1.78%(b) 0.78%(b) 1.02% 1.80% 0.71% 0.80%
Ratio of net
investment
income (loss) to
average net
assets.......... 3.83%(b) 3.08%(b) 4.07%(b) 4.00% 3.22% (0.54)% 4.21%
Ratio of expenses
to average net
assets*......... 1.34%(b) 2.09%(b) 1.09%(b) 1.33% 2.33% 0.71% 1.08%
Ratio of net
investment
income (loss) to
average net
assets*......... 3.52%(b) 2.77%(b) 3.76%(b) 3.68% 2.68% (0.54)% 3.93%
Portfolio
turnover (h).... 12.02% 12.02% 12.02% 35.15% 35.15% 35.15% 35.15%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) There was only one share outstanding for the Investor C shares at June 30,
1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
122
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
-------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------
1994 1993 (A) 1992
---------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.92 $ 10.76 $ 10.92 $ 10.58 $ 10.58 $ 10.20
------- ------- -------- ------- -------- --------
Investment Activities
Net investment income.. 0.40 0.13 0.41 0.49 0.49 0.52
Net realized and
unrealized gains
(losses) from
investments........... (0.31) (0.50) (0.31) 0.48 0.48 0.39
------- ------- -------- ------- -------- --------
Total from Investment
Activities.............. 0.09 (0.37) 0.10 0.97 0.97 0.91
------- ------- -------- ------- -------- --------
Distributions
Net investment income.. (0.39) (0.13) (0.40) (0.53) (0.53) (0.52)
Net realized gains..... (0.21) (0.21) (0.10) (0.10) (0.01)
In excess of net
realized gains.......... (0.12) (0.12)
------- ------- -------- ------- -------- --------
Total Distributions... (0.72) (0.13) (0.73) (0.63) (0.63) (0.53)
------- ------- -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 10.29 $ 10.26 $ 10.29 $ 10.92 $ 10.92 $ 10.58
======= ======= ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... 0.71% (3.41)% 0.81% 9.46% 9.48% 9.11%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $13,123 $ 359 $147,687 $ 9,333 $146,302 $130,788
Ratio of expenses to
average net assets..... 0.87% 1.80%(b) 0.77% 0.76% 0.73% 0.81%
Ratio of net investment
income to average net
assets................. 3.72% 2.88%(b) 3.83% 4.56% 4.61% 5.09%
Ratio of expenses to
average net assets*.... 1.32% 2.37%(b) 1.06% 1.09% 1.02% 1.03%
Ratio of net investment
income to average net
assets*................ 3.27% 2.31%(b) 3.53% 4.23% 4.31% 4.88%
Portfolio turnover(h)... 44.39% 44.39% 44.39% 67.26% 67.26% 66.31%
</TABLE>
See notes to financial statements.
123
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND
------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1995 -----------------------------------------------------
(UNAUDITED) 1995
---------------------------------------- -----------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E)(H) INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 10.75 $10.75 $ 10.76 $ 10.53 $10.52 $10.11 $ 10.53
------- ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income (loss).. 0.24 0.20 0.25 0.48 0.40 (0.02) 0.50
Net realized and
unrealized
gains from
investments.... 0.35 0.35 0.35 0.23 0.24 0.62 0.25
------- ------ -------- ------- ------ ------ --------
Total from
Investment
Activities...... 0.59 0.55 0.60 0.71 0.64 0.60 0.75
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment
income........... (0.24) (0.20) (0.25) (0.48) (0.40) (0.50)
In excess of net
investment
income......... (0.01) (0.01) (0.17) (0.02)
Net realized
gains............ (0.03) (0.03) (0.03)
------- ------ -------- ------- ------ ------ --------
Total
Distributions.... (0.27) (0.23) (0.28) (0.49) (0.41) (0.17) (0.52)
------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 11.07 $11.07 $ 11.08 $ 10.75 $10.75 $10.54 $ 10.76
======= ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)........ 5.58% 5.19% 5.72% 6.99% 6.28% 3.39%(g) 7.33%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $38,600 $2,951 $184,283 $37,874 $2,270 $ $176,068
Ratio of expenses
to average net
assets.......... 1.01%(b) 1.75%(b) 0.76%(b) 1.00% 1.78% 0.48% 0.78%
Ratio of net
investment
income to
average net
assets.......... 4.31%(b) 3.56%(b) 4.56%(b) 4.57% 3.80% (0.32%) 4.79%
Ratio of expenses
to average net
assets*......... 1.30%(b) 2.05%(b) 1.05%(b) 1.32% 2.32% 0.48% 1.07%
Ratio of net
investment
income to
average net
assets*......... 4.02%(b) 4.26%(b) 4.27%(b) 4.25% 3.25% (0.32%) 4.50%
Portfolio
turnover (i).... 10.46% 10.46% 10.46% 26.06% 26.06% 26.06% 26.06%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) There was only one share outstanding for the Investor C shares at June 30,
1995.
(i) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
Continued
124
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND, CONTINUED
--------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------
1994 1993 (A) 1992
---------------------------------------- ------------------------ --------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.97 $ 11.09 $ 10.97 $ 10.58 $ 10.58 $ 10.14
------- ------- -------- ------- -------- --------
Investment Activities
Net investment income.. 0.47 0.16 0.48 0.50 0.50 0.52
Net realized and
unrealized gains
(losses) from
investments........... (0.36) (0.57) (0.36) 0.47 0.47 0.44
------- ------- -------- ------- -------- --------
Total from Investment
Activities.............. 0.11 (0.41) 0.12 0.97 0.97 0.96
------- ------- -------- ------- -------- --------
Distributions
Net investment income.. (0.45) (0.16) (0.46) (0.54) (0.54) (0.52)
Net realized gains..... (0.01) (0.01) (0.04) (0.04)
In excess of net
realized gains.......... (0.09) (0.09)
------- ------- -------- ------- -------- --------
Total Distributions... (0.55) (0.16) (0.56) (0.58) (0.58) (0.52)
------- ------- -------- ------- -------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 10.53 $ 10.52 $ 10.53 $ 10.97 $ 10.97 $ 10.58
======= ======= ======== ======= ======== ========
Total Return (excludes
sales and redemption
charges)............... 0.92% (3.69)% 1.02% 9.40% 9.42% 9.73%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $42,204 $ 1,302 $181,051 $32,778 $165,414 $146,782
Ratio of expenses to
average net assets..... 0.85% 1.77%(b) 0.75% 0.78% 0.76% 0.84%
Ratio of net investment
income to average net
assets................. 4.25% 3.51%(b) 4.35% 4.67% 4.70% 5.15%
Ratio of expenses to
average net assets*.... 1.29% 2.32%(b) 1.04% 1.12% 1.05% 1.05%
Ratio of net investment
income to average net
assets*................ 3.81% 2.97%(b) 4.06% 4.33% 4.41% 4.93%
Portfolio turnover(i)... 6.69% 6.69% 6.69% 35.81% 35.81% 19.97%
</TABLE>
See notes to financial statements.
125
<PAGE>
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<PAGE>
[THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.]
<PAGE>
[THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.]
<PAGE>
Parkstone offers investors:
. Expert money management from First of America Investment Corporation
. Low initial investment
. An automatic investment program
. The opportunity to change investments when personal needs change
. 24-hour access to information about investments through FUNDATA(R) at
1-800-451-8377
The Parkstone Group of Funds
Growth Funds
Parkstone Small Capitalization Fund
Parkstone Equity Fund
Parkstone International Discovery Fund
Growth and Income Funds
Parkstone Balanced Fund
Parkstone High Income Equity Fund
Income Funds
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
Tax-Advantaged Bond Funds
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
Money Market Funds
Parkstone Prime Obligations Fund
Parkstone U.S. Government Obligations Fund
Parkstone Tax-Free Fund [LOGO OF PARKSTONE MUTUAL
Parkstone Treasury Fund FUNDS APPEARS HERE]
---------------
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 2443
---------------
