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[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
[ILLUSTRATION APPEARS HERE]
June 30, 1996
ANNUAL REPORT
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Table of Contents
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
Message From Your Chairman............................................... 2
Message From Your Investment Adviser..................................... 4
Portfolio Performance Discussion......................................... 6
Report of Independent Accountants........................................ 31
Statements of Assets and Liabilities..................................... 32
Statements of Operations................................................. 36
Statements of Changes in Net Assets...................................... 40
Schedules of Portfolio Investments....................................... 48
Notes to Financial Statements............................................ 93
Financial Highlights..................................................... 108
1
<PAGE>
Message From Your Chairman,
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THE PARKSTONE MUTUAL FUNDS June 30, 1996
Dear Shareholders:
We are pleased to report that the 12 months ended June 30, 1996, were good ones
for the financial markets and for The Parkstone Mutual Funds. During the period,
the Dow Jones Industrial Average soared nearly 900 points higher and,
ultimately, fell just 12 points short of breaking through the 5800 level. And,
despite their ups and downs throughout the year, the fixed-income markets, too,
gained ground. During the period, investors continued to invest record amounts
in mutual funds--and we are pleased to report that many chose to do so with The
Parkstone Mutual Funds. Over the 12-month period, net assets under management
increased from $5.1 billion to $6.0 billion.
Small Capitalization Fund receives industry recognition
Most importantly, the performance of the Funds over the year was strong. We are
happy to report that several beat their industry benchmarks by a significant
margin, and the performance of the Parkstone Small Capitalization Fund was
particularly impressive. For the year ended June 30, 1996, the Fund produced a
total return of 49.93% and 50.03% for Investor A Shares and Institutional
Shares, respectively, versus a gain of nearly 24% in its benchmark, the Russell
2000 Index. Over the past five years, the Fund produced an average annual total
return of 28.89% and 29.09% for Investor A Shares and Institutional Shares,
respectively./1/
The outstanding performance of the Small Capitalization Fund has been publicly
recognized on several fronts. We are delighted to report that the Fund was--
. Ranked by Lipper Analytical Services among the 50 best-performing stock funds
based on the total return for the one- and five-year periods ending June 28,
1996, as reported by The Wall Street Journal (July 3, 1996). For the one-year
period, the Fund ranked 27th out of 50; for the five-year period, it ranked 14th
out of 50./2/
. Ranked by Morningstar in the top 6% of all small-company funds (23rd of 357)
for the one-year period and in the top 4% of all small-company funds (4th of
106) for the five-year period ending June 30, 1996./3/
. Awarded five stars by Morningstar, out of 1,583 equity funds for the three
years ending June 30, 1996./4/ Both Investor and Institutional shares received
the five-star rating.
More good news
. The Parkstone Government Income Fund also was awarded five stars by
Morningstar and ranked in the top 7% of all government mortgage funds, 9th out
of 122 for the one-year period ending June 30, 1996./4/
. The Parkstone Equity Fund posted a return of 29.57% (Investor A Shares) while
the benchmark, the S&P 400 Index, gained 21.58% over the same period./5/
/1/With the maximum 4.50% sales charge, Investor A Shares had a total return of
43.18% for the one-year period and an average annual return of 27.71% for the
five-year period. For the five-year period, Institutional Shares, which do not
have a sales charge, had an average annual return of 29.09%. Past performance
is no guarantee of future results. The investment return and NAV will fluctuate,
so that an investor's shares, when redeemed, may be worth more or less than the
original cost.
/2/Performance rankings are based on total returns for the periods. Past
performance is no guarantee of future results.
/3/The rankings are based on data from Morningstar, Institutional Shares for
which evaluated cumulative one-year and five-year total returns for the periods
ending June 30, 1996. Past performance is no guarantee of future results.
/4/The Small Capitalization Fund's Institutional Shares received a 5-star rating
based on its overall performance for the 1-,3- and 5-year periods ending June
30, 1996. The Fund's Investor A Shares received a 5-star overall ranking for its
3-year performance and a 4-star rating for its 1-year performance for the
periods ending June 30, 1996. The Fund was ranked among 2,882, 1,583 and 997
equity funds for the 1-,3- and 5-year periods. Morningstar proprietary ratings
reflect historical risk-adjusted performance and are calculated from a fund's
3-and 5-year average annual returns with fee adjustments in excess of 90-day
Treasury bill returns and a risk factor that reflects fund performance below
90-day Treasury bill returns. The one-year rating is calculated using the same
methodology but is not a component of the overall rating. The ratings are
subject to change every month. Ten percent of the funds in an investment
category receive 5 stars, and 22.5% receive 4 stars.
/5/With the maximum 4.50% sales charge, the Fund's total return was 23.74% for
the period. Past performance is no guarantee of future results.
2
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Message From Your Chairman, continued
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THE PARKSTONE MUTUAL FUNDS June 30, 1996
A range of equity opportunities
We're also pleased to report that the Parkstone Large Capitalization Fund was
successfully launched on December 28, 1995. The Fund seeks to invest in
companies with market capitalizations of $5 billion or more, long-established
track records and the potential for strong earnings growth. The Fund is intended
to complement the other equity funds we manage. With its introduction, our fund
family now offers shareholders a wide range of focused equity strategies.
The Fund provides investors with an opportunity to balance or further diversify
their equity holdings. While pursuing capital appreciation, it offers a
different level and kind of risk than, for instance, the Parkstone Small
Capitalization Fund or the Parkstone Equity Fund. Typically, in uncertain
environments, larger stocks tend to be less volatile than small or mid-cap
stocks. According to industry experts, as our economy slows in the months ahead,
we expect corporate profits to decline and volatility to increase.
Consequently, investments now in the Parkstone Large Capitalization Fund, or in
the International Discovery Fund, which invests in markets outside the U.S.
where growth is expected to increase, may prove to be very timely, indeed.
For more complete information on the Parkstone Large Capitalization Fund, or any
of The Parkstone Mutual Funds, 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 12 months ended June 30, 1996.
You will also find a letter from our Investment Adviser, which includes an
economic outlook for the coming months. We urge you to read this material
closely.
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 years 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/ George R. Landreth
George R. Landreth
Chairman
The Parkstone Funds
July 22, 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>
Message From Your Investment Advisor
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THE PARKSTONE MUTUAL FUNDS June 30, 1996
Dear Fellow Shareholders:
If there's a lesson to be learned as we approach the second half of 1996, it's
"don't believe everything you read in the papers." Over the past several months,
none of the negatives that affected growth in 1995, such as severe weather,
government layoffs and strikes, were present. Housing, vehicle sales and
employment growth all increased. As a result, when the preliminary estimate of
economic growth for the second quarter was released in August, it was a whopper,
as we had expected--4.2%, far above the 2.5% the Federal Reserve considers
noninflationary.
Just as weak economic growth in the fourth quarter of 1995 prompted the media to
predict an imminent recession earlier in the year, these new statistics are sure
to produce a flurry of reports, articles and analysis on our "runaway economy"--
and, of course, how it threatens to accelerate inflation.
The fat lady is warming up in the wings...
While growth statistics are bound to be very impressive, we believe that our
economy is not preparing to shift gears and suddenly move into the fast lane. We
expect growth to drop off in the second half of the year, and, contrary to
popular opinion, there is ample reason to believe that this slowdown will not be
entirely due to any action on the part of the Federal Reserve.
We've now caught up with inventory backlogs and other distortions that have
existed in the economy over the last nine months. Tax refunds have been spent.
Inventories have been replaced. Consumers are somewhat overextended, and
interest rates are rising. In short, we feel that the peak of the economic
growth cycle is upon us now, and it is very unlikely that the current rate of
growth can be sustained much longer. It is even less likely that we'll see
higher levels of activity in the remainder of the year.
If, however, we are wrong and, for some unforeseen reason, growth remains in the
range of 4%, we would expect to see signs of increasing inflation--which would
very likely cause the Federal Reserve to raise interest rates quickly and
significantly, thus slowing the economy. Indeed, while the Federal Reserve did
not raise interest rates at its Open Market Committee Meeting in early July,
Chairman Greenspan could initiate such a move at or before the next FOMC meeting
scheduled for August 20.
A little squeeze or a big freeze?
Consequently, it is clear that--despite what you may read in the papers--our
economy is likely to decelerate rather than accelerate in the second half of the
year. The next question becomes: How much will it slow?
There are a number of factors that can influence immediate growth significantly.
For instance, if corporations continue their downsizing efforts to maintain
profit margins--as corporate profit growth declines on an overall basis--the
results could have a negative effect on the economy. Interest rates, too, have
risen in recent months. If the impact of higher rates on the housing market is,
in fact, greater than we have seen so far, this could also slow the economy.
Consequently, it is extremely difficult to predict how deep a drop-off may be or
how long it will last.
Correction-created opportunities
What we do know is that increases in interest rates and declining corporate
profits make further gains in the stock market unlikely any time in the near
future. At best, over the next several months, we would expect to see stocks
trade in a neutral range. At worst, we may see a market correction of some 10%
or more. However, this worst-case scenario may be the best-case scenario for
stock investors. We believe that, long term, the prospects for stocks are very
positive--and a correction could be an exceptional buying opportunity.
4
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Message From Your Investment Advisor, continued
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THE PARKSTONE MUTUAL FUNDS June 30, 1996
The next several months should also create opportunity in the bond markets. We
expect interest rates to continue trending downward well into the next century.
While it seems unlikely that long-term rates would rise to 8% or more over the
next several months, if this should happen, long-term fixed-income investors may
be well advised to take advantage of the situation--as higher interest rates
mean lower bond prices.
When the fat lady sings...
Consequently, while the road just ahead may be somewhat rocky for many
investors, we encourage our shareholders to continue to view both the stock and
bond markets with a long-term perspective. We believe the next six months will
prove to be a period of exceptional opportunity in the financial markets. In
fact, when and if the Fat Lady sings, we plan to stand up, cheer--and take full
advantage of the situation.
Sincerely,
/s/Richard A. Wolf
Richard A. Wolf, CFA
President and Chief Investment Officer
First of America Investment Corporation
July 22, 1996
5
<PAGE>
Portfolio Performance Discussion
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
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 June 30, 1996, 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
We're pleased to report that during the year ended June 30, 1996, the Fund's
transition to a "mid-cap" fund--one emphasizing investment in companies with
capitalizations between $750 million and $5 billion--was successfully completed.
At the end of the period, the Fund was more widely diversified, with investments
in more than 70 different companies. Moreover, while our holdings in the
technology sector decreased slightly, our investments in the financial and
consumer goods sectors were increased. Consequently, the Fund was well
represented in three of the strongest- performing areas of the market during the
year.
It was a very good year
Despite waves of anxiety that swept through the marketplace on the heels of each
bulletin on interest rates, inflation and economic growth, the market continued
to reward companies exhibiting strong and predictable earnings growth. Focused
on such companies, the Fund benefited handsomely. In the consumer cyclical
sector, our holdings in Hospitality Franchise System, Inc., which franchises
hotels and operates real estate brokerages, and Petsmart, the largest operator
of pet supply stores in the U.S., made substantial contributions to performance,
returning 40% and 32%, respectively, in the latest quarter. Among our technology
holdings, two software companies were standout performers: GT Interactive and
McAfee Associates, advancing 56% and 32%, respectively, for the most recent
quarter.
As a result, the Fund beat its benchmark handily for the period. We're very
pleased to report that for the year ended June 30, 1996, the Fund posted a total
return of 29.57% (Investor A Shares),+ versus a gain of 21.58% in the S&P 400
Mid-Cap Index over the same period.
Bright long-term prospects
Currently, slightly over 20% of the portfolio's assets are invested in
technology and technology-related companies, with approximately 20% in consumer
cyclicals, 15% in health care and the remainder invested across the market in a
wide range of industries. While we are optimistic about the prospects for the
market over the long term, stock selection will be critical in the months ahead.
With this in mind, we will continue to seek out and invest in those companies
with solid balance sheets and the potential to be industry leaders over the
long-term.
As of June 30, 1996, the Fund's top five holdings were Hospitality Franchise
Systems (4.83%), Ceridian Corp. (2.77%), Service Corp. International (2.68%),
Parametric Technology Corp. (2.62%) and HealthSouth Corp. (2.49%).++
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+ The total return with the maximum 4.50% sales charge was 23.74% for the
period.
++ The composition of the Fund's portfolio is subject to change.
6
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Portfolio Performance Discussion, continued
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
EQUITY FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION> S&P Mid-Cap
Investor A* Institutional S&P 500 400 Index
<S> <C> <C> <C> <C>
10/88 9,551 10,000 10,000 10,000
6/89 11,159 11,683 11,673 12,293
6/90 13,305 13,930 13,599 14,190
6/91 13,245 13,867 14,628 16,012
6/92 15,255 15,972 16,590 18,982
6/93 18,524 19,381 18,851 23,290
6/94 18,048 18,909 19,116 23,281
6/95 22,533 23,674 24,100 28,483
6/96 29,197 30,736 30,366 34,631
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Investor A * 23.74% 16.06% 14.99%
- --------------------------------------------------------------------------------
Institutional 29.83% 17.26% 15.76%
- --------------------------------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Change
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
S&P Mid-Cap
Investor B** S&P 500 400 Index
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 8,430 9,344 10,000
6/95 10,486 11,780 10,000
12/95 13,689 14,843 13,475
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------------------------------------------------------
<S> <C> <C>
Investor B ** 24.59% 13.94%
- --------------------------------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C S&P 500 S&P Mid-Cap
400 index
<S> <C> <C> <C>
10/88 10,000 10,000 10,000
6/89 11,583 11,673 12,293
6/90 13,930 13,599 14,190
6/91 13,867 14,628 16,012
6/92 15,972 16,590 18,982
6/93 19,381 18,851 23,290
6/94 18,909 19,116 23,281
6/95 23,364 24,100 28,483
6/96 30,066 30,366 34,631
</TABLE>
Investor C*** S&P 500 S&P Mid-Cap
400 Index
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Investor C *** 28.69% 16.74% 15.43%
- --------------------------------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
Until recently, the Fund had invested in stocks of mid-sized and large
companies. As a result, the Standard & Poor's 500 Stock Index had been an
appropriate performance benchmark, since it is a broad measure of the U.S. stock
market as a whole. However, the Fund's performance is now being compared to the
Standard & Poor's Mid-Cap 400 Index to better reflect the Fund's new focus on
the mid-cap sector of the U.S. stock 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 Equity
Fund reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
7
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Portfolio Performance Discussion, continued
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
HIGH INCOME EQUITY FUND
Positioned to provide investors with growth potential on market upswings and
protection on downdrafts, the Fund performed exceptionally well in the strong
market of the year ended June 30, 1996. During much of the year, tech stocks led
the market higher, but since few of these stocks offer income potential, the
Fund had little representation in this sector.
Nevertheless, the market recognized and rewarded the quality of our holdings in
other industries. Among the portfolio's outstanding performers were Coca-Cola
and Intimate Brands, the owner of Victoria's Secret and Bath and Body Works.
Both rose 18% over the most recent quarter. American Home Products gained 11%.
Convertible bonds from HFS, Inc., a national hotel franchiser, and Phycor, a
medical services company, posted gains of 17%. Moreover, the value of the Fund's
holdings in Xerox and Emerson Electric rose 28% and 12%, respectively, in the
latest quarter.
As a result, for the year ended June 30, 1996, the Fund posted a total return of
25.05% (Investor A Shares)+ versus its industry benchmark, the S&P 500, which--
including the stunning gains of technology stocks--advanced 26.00% during the
same period.
Fine-tuning for the future
Looking ahead, we expect to continue to seek out opportunities that offer our
investors a combination of current income and solid long-term growth potential.
Our investment in Intimate Brands is a good example of this strategy. Currently,
the stock offers investors a yield in the range of 2%, and the company is
growing at a rate of 20% annually. We expect both the value of the company's
stock and its yield to increase in the years ahead. Currently, similar
situations can also be found throughout the retail industry and in the water
utilities sector, where privatization has increased the industry's growth
potential.
As of June 30, 1996, the Fund's top five holdings were Eli Lilly (3.16%), MBNA
Corp. (3.09%), Emerson Electric (3.08%), Xerox Corp. (3.01%) and Sears Roebuck
(2.91%). ++
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+ The total return with the maximum 4.50% sales charge was 19.45% for the
period.
++ The composition of the Fund's portfolio is subject to change.
8
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Portfolio Performance Discussion, continued
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
HIGH INCOME EQUITY FUND
Value of $10,000 Investment
[LINE 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
6/96 24,653 25,947 30,366
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Investor A* 19.45% 11.23% 12.48%
- --------------------------------------------------------------------------------
Institutional 25.30% 12.38% 13.23%
- --------------------------------------------------------------------------------
</TABLE>
* Reflects a 4.50% Sales Charge
Value of $10,000 Investment
[LINE 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
6/96 12,090 14,843
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------------------------------------------------------
<S> <C> <C>
Investor B** 20.11% 8.21%
- --------------------------------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
Value of $10,000 Investment
[LINE 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
6/96 25,518 30,366
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 24.17% 12.00% 12.99%
- --------------------------------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
which reflects the performance of the U.S. stock market as 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. The
investment return and NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
9
<PAGE>
Portfolio Performance Discussion, continued
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THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
LARGE CAPITALIZATION FUND
Introduced just six months ago on December 28, 1995, the Fund invests primarily
in shares of companies that lead their industries and have market capitali-
zations of $5 billion or more, established track records, stable management and
above-average growth prospects. This strategy is designed to capitalize on the
growth potential and relatively low share price volatility that these stocks
typically offer.
A promising start
Overweighted in two of the market's best- performing sectors, technology and
consumer- related industries, the Fund's first six months of operations were
successful ones. Among our technology holdings, Cisco Systems and Oracle Systems
moved dramatically higher, advancing 52% and 40%, respectively. Standout
performers in the consumer-related sector included Coca-Cola, which gained 32%
over the period, and Nike, which raced 48% higher.
Outstanding potential
While it is far too early to judge the performance of the Fund, we are extremely
pleased with initial results. Since the Fund's inception on February 1, 1996, it
has had a total return of 8.99% (Investor A Shares),+ versus a gain of 6.53% in
its benchmark, the S&P 500.
Although the market may be somewhat rocky in the near term, we believe that the
long-term prospects for stocks are very bright. Nevertheless, we also believe
that quality will be critical to success. To this end, we will continue to
analyze stocks and companies individually rather than making industry or sector
bets, or attempting to time the market. Moreover, we will continue to seek out
and invest only in those companies with powerful earnings records and strong
growth prospects--leaders in their industries today, with the potential to
remain leaders into the 21st Century.
As of June 30, 1996, the Fund's top five holdings were Oracle Corp. (2.91%),
Federal National Mortgage Association (2.78%), First Data Corp. (2.74%),
Kimberly-Clark (2.34%) and American International Group (2.30%).++
- ------------
+ The total return with the maximum 4.50% sales charge was 4.05% for the
period.
++ The composition of the Fund's portfolio is subject to change.
10
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
LARGE CAPITALIZATION FUND
[CHARTS APPEAR HERE]
<TABLE>
<CAPTION>
DATE INVESTOR A* INVESTOR B** INVESTOR C*** S&P 500
---- ---------- ---------- ---------- -------
<S> <C> <C> <C> <C>
2/96 9,567 9,672 9,987 10,000
6/96 10,405 10,477 10,714 10,653
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return
As of June 30, 1996
- ----------------------------------------------------
Since
Inception
(2/1/96)
- ----------------------------------------------------
<S> <C>
Investor A* 4.05%
- ----------------------------------------------------
Investor B** 4.77%
- ----------------------------------------------------
Investor C*** 7.14%
- ----------------------------------------------------
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred
Sales Charge
*** Reflects Applicable Contigent Deferred
Sales Charge
</TABLE>
[CHARTS APPEAR HERE]
<TABLE>
<CAPTION>
DATE INSTITUTIONAL S&P 500
---- ------------- -------
<S> <C> <C>
12/95 10,000 10,000
6/96 11,286 11,032
</TABLE>
<TABLE>
<CAPTION>
Aggregate Total Return
As of June 30, 1996
- ----------------------------------------------------
Since Inception
(12/28/95)
- ----------------------------------------------------
<S> <C>
Institutional 12.86%
- ----------------------------------------------------
</TABLE>
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
which represents the performance of the U.S. stock market as 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 Large Capitalization Fund reflects the deduction of fees for these
value-added services. Past performance is not predictive of future results. The
investment return and NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
11
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
SMALL CAPITALIZATION FUND*
Stock selection was the key to the Fund's superb performance in the relatively
unsettled market of the past year. Despite the hiccup in the technology sector
in late December, investor anxiety over economic growth in the spring and
interest-rate worries throughout the period, the market continued to reward
companies with strong fundamentals and powerful earnings potential. With its
focus on such companies, the Fund profited as holdings in all sectors
contributed positively to performance.
Some gains were dramatic over the past year. Corrections Corp. of America, a
prison management firm, rose 300%, and Wackenhut, a provider of security
services, moved up 193%. In the technology sector, McAfee Associates gained
263%, and Systemsoft advanced 224% over the period. In the health-care sector,
our holdings in Quintiles Transnational Corp. and Dura Pharmaceuticals gained
190% and 193%, respectively.
As a result, we are extremely pleased to report that for the year ended June 30,
1996, the Fund generated a total return of 49.93% (Investor A Shares)+--far
surpassing its industry benchmark, the Russell 2000, which advanced 23.93%
during the same period.
Investing with strength in mind
In the months ahead, we expect to continue our present strategy. We will
continue to seek out and invest in the strongest small-capitalization companies
across all market sectors. Because the fundamentals of the companies we select
are so strong, we believe their prospects are solid, regardless of the
environment.
Nevertheless, as we've seen over the past several years, some market sectors
offer more opportunity than others. Clearly, the demand for health care and
technology products is growing dramatically today and will continue to do so in
the foreseeable future. We would view any correction or adjustment in these
sectors as a serious buying opportunity.
As of June 30, 1996, the Fund was broadly diversified with holdings in over 80
companies. The Fund's top five holdings were McAfee Associates (3.27%),
Omnicare (3.01%), Concord EFS (2.80%), Regal Cinemas (2.62%) and Credit
Acceptance Corp. (2.54%). ++
- --------------
* Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure. 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 43.18% for the
period.
++ The composition of the Fund's portfolio is subject to change.
12
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
[LINE 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
6/96 47,378 49,987 26,913
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
As of June 30, 1996
Since
1 Year 5 Years Inception
(10/31/88)
- ----------------------------------------------------
<S> <C> <C> <C>
Investor A* 43.18% 27.71% 22.48%
- ----------------------------------------------------
Institutional 50.03% 29.09% 23.34%
- ----------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
Value of $10,000 Investment
[LINE 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
6/96 18,390 13,498
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
As of June 30, 1996
- ----------------------------------------------------
1 Year Since
Inception
(2/4/94)
- ----------------------------------------------------
<S> <C> <C>
Investor B** 44.87% 28.82%
- ----------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<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
6/96 49,092 26,913
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
As of June 30, 1996
- ----------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ----------------------------------------------------
<S> <C> <C> <C>
Investor C*** 48.32% 28.62% 23.05%
- ----------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
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. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
13
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
INTERNATIONAL DISCOVERY FUND*
After five years of no growth, the Japanese economy began to show strong signs
of life in the first half of 1996. Moreover, high-quality growth stocks, which
had been out of favor with investors in the second half of 1995, bounced back
smartly with the new year. The only fly in the international ointment was the
strength of the U.S. dollar, which was a drag on performance throughout the
year. But this appears to be changing as interest rates in Europe have begun to
rise, making the dollar less attractive to foreign investors.
What began as a relatively mixed year for the Fund ended on a very positive
note. We're pleased to report that for the 12 months ended June 30, 1996, the
Fund outperformed its industry benchmark, the MSCI EAFE Index, with a total
return of 14.65% (Investor A Shares),+ versus a gain of 13.28% for the index.
A positive outlook
We believe the year ahead will be a good one in international markets as the
Japanese economy continues to improve and other markets around the world,
particularly those in the Pacific region and Latin America, strengthen and
expand. Continental Europe, too, offers opportunity. Companies there are only
now beginning the downsizing process that started some years ago in the U.S.
Even with relatively slow economic growth on the Continent, investors should see
profit margins expand substantially as European companies become more efficient.
Consequently, we would view a correction or drop in these markets as a buying
opportunity since we believe that, long term, the prospects for international
investors are very bright.
Positioned for growth
As of June 30, 1996, the Fund was widely diversified, with over 85 holdings in
29 markets around the world. Approximately 33% of the Fund's assets were
invested in Continental Europe, 27% in Japan, 11% in smaller Pacific Basin
markets, 11% in the United Kingdom, 6% in Latin America and 4% in Canada. During
the period, the Fund also added securities from Israel, South Korea and the
Philippines to its portfolio.
At the end of the period, the Fund's top five holdings were BIC (France; 2.45%),
Mitsubishi Heavy Industries (Japan; 2.39%), Oce-Van Der Grinten (Netherlands,
2.10%), Rohm Corp. (Japan; 2.06%) and Takeda Chemical (Japan; 1.92%).++
- -----------------
* 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 9.46% for the
period.
++ The composition of the Fund's portfolio is subject to change.
14
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley
Investor A* Institutional Europe Australia & Far East
<S> <C> <C> <C>
12/92 9,551 10,000 10,000
6/93 10,994 11,552 12,226
6/94 12,642 13,229 14,104
6/95 12,366 13,051 14,115
6/96 14,177 14,977 15,989
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(12/29/92)
- --------------------------------------
<S> <C> <C>
Investor A* 9.46% 10.46%
- --------------------------------------
Institutional 14.76% 12.21%
- --------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley
Investor B** Europe Australia & Far East
<S> <C> <C>
2/94 10,000 10,000
6/94 8,981 9,971
6/96 8,728 9,979
6/96 9,989 11,304
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- --------------------------------------
<S> <C> <C>
Investor B** 9.33% -0.05%
- --------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley
Investor C*** Europe 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
6/96 14,937 15,989
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(12/29/92)
- --------------------------------------
<S> <C> <C>
Investor C*** 13.62% 12.12%
- --------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
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. The
investment return and NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
15
<PAGE>
===============================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
THE BALANCED FUND
Timely asset allocation decisions were the key to the Fund's strong performance
over the year ended June 30, 1996. Throughout much of the period, approximately
50% of the Fund's portfolio was invested in stocks, a far more conservative
commitment to equities than many funds of this kind made to stocks during the
period.
However, with holdings in small-cap stocks and the addition of an international
component earlier in the period, the Fund participated as small-cap stocks took
the market higher and benefited as our international holdings performed
competitively with U.S. stocks. Moreover, these holdings performed more
consistently throughout the year than the U.S. market, which helped reduce the
potential volatility of the portfolio. As a result, despite rising interest
rates, which depressed fixed-income returns, the Fund posted a solid total
return of 17.51% (Investor A Shares )+ for the year ended June 30, 1996.
Large caps should shine
During the market's climb of the past several years, smaller stocks have clearly
led the pack and larger stocks have followed. But, as the saying goes, nothing
lasts forever, and that's particularly true in the stock market. In the months
ahead, we expect to see the situation reverse to some extent as investors seek
out larger-cap stocks in an effort to help reduce risk in a more uncertain
environment. As a result, in recent months, our commitment to the small-cap
sector has decreased from 12% of the portfolio's equity holdings to 6%. Our
holdings in mid-cap stocks have also been reduced, while exposure in large-
capitalization stocks has been increased. We expect to maintain this allocation
in the near term.
As of June 30, 1996, approximately 51% of the portfolio was invested in stocks,
with 46% in fixed-income securities and 3% in cash equivalents. The Fund's top
five equity holdings as of that date were Oracle Corp. (1.33%), Gillette
(1.06%), Cisco Systems (1.05%), First Data Corp. (.92%) and Hospitality
Franchise System (.89%).++ The average maturity of these securities was 9.81
years.
- --------------
+ The total return with the maximum 4.50% sales charge was 12.27% for the
period.
++ The composition of the Fund's portfolio is subject to change.
16
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
BALANCED FUND
Value of $10,000 Investment
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
Saloman
Investor A Institutional S&P 500 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
6/96 15,146 15,951 18,525 13,622
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(1/31/92)
- --------------------------------------
<S> <C> <C>
Investor A* 12.27% 9.85%
- --------------------------------------
Institutional 17.81% 11.14%
- --------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
Value of $10,000 Investment
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
Salomon
Investor B** S&P 500 Broad Index
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 8,820 9,344 9,947
6/95 10,434 11,780 10,689
6/96 12,344 14,843 11,222
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- --------------------------------------
<S> <C> <C>
Investor B** 12.71% 9.15%
- --------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE CHART APPEARS HERE]
<TABLE>
<CAPTION>
Salomon
Investor C*** S&P 500 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
6/96 15,566 18,525 13,622
</TABLE>
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(1/31/92)
- --------------------------------------
<S> <C> <C>
Investor C*** 16.61% 10.53%
- --------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Standard & Poor's 500 Stock Index, a
broad measure of the stock market as a whole, and the Salomon Brothers 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. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
17
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
THE FIXED-INCOME FUNDS
Overall, the 12 months ended June 30, 1996, were frustrating ones for fixed-
income investors. In the second half of 1995, the markets rallied in reaction to
reports of a slowing economy and the Federal Reserve's moves to lower short-term
interest rates. As the new year opened, however, evidence that the economy was
stronger than anticipated began to appear. Always just beneath the surface, the
market's fears of inflation emerged, and repeatedly reinforced reports of
expanding growth and low unemployment caused the bond markets to decline in the
first half of 1996.
Given the circumstances, we approached the markets very cautiously throughout
the year. As a result, the Funds slightly lagged their benchmarks. Nevertheless,
we feel our conservative approach served investors well during the period.
Performing as they were intended to do, the Funds made strong gains in the
positive environment of 1995 and weathered the difficult climate of 1996.
The Parkstone Limited Maturity Bond Fund
While all fixed-income securities suffered to some degree as interest rates rose
in the first half of 1995, corporate securities performed much better than many
others. Heavily weighted in this sector throughout the year ended June 30, 1996,
the Fund benefited as corporate profits--while no longer growing at the
astounding pace of just a year ago--stayed strong and investors showed their
appreciation. The Fund's holdings in the mortgage-backed sector also contributed
to performance. Hampered by investors' anxiety over prepayment risk throughout
1995, this sector rebounded smartly as rising interest rates chased these fears
away. For the 12 months ended June 30, 1996, the Fund produced a total return of
4.37% (Investor A Shares).+
As of the same date, approximately 74% of the portfolio was invested in
corporate securities and 20% in U.S. Treasury and agency-related securities.
The average credit quality of the portfolio's holdings was AAA.++
- ------------
+ The total return with the maximum sales charge of 4.00% was 0.24% for the
period.
++ The composition of the Fund's portfolio is subject to change.
18
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
LIMITED MATURITY BOND FUND
Value of $10,000 Investment
[LINE 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
6/96 15,928 16,697 17,862
</TABLE>
Investor A* Institutional ***Salomon 1-5 Year
Investment-Grade
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* 0.24% 5.32% 6.26%
- ------------------------------------------------
Institutional 4.65% 6.30% 6.91%
- ------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B Salomon 1-5 Year
Institutional
<S> <C> <C>
2/94 10,000 10,000
6/94 9,408 9,781
6/95 10,056 10,641
6/96 10,519 11,207
</TABLE>
Investor B** ***Salomon 1-5 Year
Investment-Grade
Average Annual Total Return
As of June 30, 1996
- --------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- --------------------------------------
<S> <C> <C>
Investor B** -0.47% 2.13%
- --------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C Salomon 1-5 Year
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
6/96 15,905 17,862
</TABLE>
Investor C*** ***Salomon 1-5 Year
Investment-Grade
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor C*** 3.71% 5.27% 6.24%
- ------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Salomon Brothers 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. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
19
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
The Bond Fund
Asset allocation was the key to the Fund's solid performance in the up-and-down
markets of the year ended June 30, 1996. In the latter half of 1995, the Fund
was underweighted in mortgage-backed issues, which suffered from a severe case
of "prepayment jitters" in the low interest-rate environment, and overweighted
in corporate securities, which shone as corporate profits skyrocketed. Then, in
the first half of 1996, we moved quickly to increase the Fund's exposure in
mortgage-backed securities as rates rose and worries about prepayments
disappeared. Holdings in U.S. Treasury securities, which fell out of favor
rapidly, were decreased. As a result, despite the relatively negative
environment for fixed-income securities in the past six months, the Fund posted
a return of 4.27% (Investor A Shares)+ for the year ended June 30, 1996.
In the months ahead, we expect to see the mortgage-backed sector continue to
perform well.
We believe that corporate securities remain fundamentally sound. Nonetheless,
profits are anticipated to drop off in the second half of the year. While a
decline should be gradual rather than drastic, after several years of stunning
earnings reports, the markets may react dramatically. As a result, security
selection will be critical to success in the months ahead, and we will focus
closely on the quality and structure of all issues considered for investment.
At the period's end, approximately, 44% of the Fund's assets were invested in
corporate bonds, 25% in mortgage-backed securities and 25% in U.S. Treasury
securities. The average credit quality of the portfolio's holdings was AA.++
- -----------------
+ The total return with the maximum sales charge of 4.00% was 0.13% for the
period.
++ The composition of the Fund's portfolio is subject to change.
20
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
BOND FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon
Investor A Institutional 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
6/96 17,161 18,075 19,249
</TABLE>
Investor A*
Institutional
Salomon Broad Index
<TABLE>
<CAPTION>
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* 0.13% 6.75% 7.29%
- ------------------------------------------------
Institutional 4.49% 7.86% 8.02%
- ------------------------------------------------
</TABLE>
*** Reflects 4.00% Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon
Investor B Broad Index
<S> <C> <C>
2/94 10,000 10,000
6/94 9,144 9,497
6/95 10,138 10,689
6/96 10,605 11,222
</TABLE>
Investor B**
Salomon Broad Index
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
<S> <C> <C>
Investor B** -0.47% 2.47%
- ------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon
Investor C 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
6/96 17,364 19,249
</TABLE>
Investor C***
Salomon Broad Index
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor C*** 3.50% 7.00% 7.46%
- ------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Salomon Brothers 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. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
21
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
The Intermediate Government Obligations Fund
Throughout much of the period, the Fund held primarily U.S. Government and
agency securities--solid performers that benefited from the drop in interest
rates throughout 1995, and then, as rates rose, fell out of favor with
investors. At the same time, however, mortgage-backed securities staged a
comeback as prepayment fears evaporated in the face of rising rates. With some
13.5% of its assets invested in the mortgage-backed sector, the Fund was well
positioned to capitalize as it strengthened.
Moreover, the firmness of our mortgage-backed holdings worked to lessen the
impact of the market's volatility throughout the first half of 1996 and protect
shareholders' capital. For the year ended June 30, 1996, we're pleased to report
that the Fund produced a total return of 3.69% (Investor A Shares).+
As of the same date, the Fund held approximately 69% of its assets in U.S.
Treasury securities, 14% in mortgage-backed securities and 18% in U.S.
Government agency issues.++ Should interest rates continue to rise in the
coming months, we anticipate increasing the Fund's weighting slightly in
mortgage-backed securities. Nevertheless, we would do so very selectively and
will maintain our high quality standards--firm in the belief that high-quality
intermediate issues will continue to provide investors with the best opportunity
to earn current, dependable income.
- -------------------------
+ The total return with the maximum sales charge of 4.00% was
-0.43% for the period.
++ The composition of the Fund's portfolio is subject to change.
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
[LINE GRAPH OF VALUE OF $10,000 INVESTMENT APPEARS HERE]
<TABLE>
<CAPTION>
Value of a $10,000 Investment
(In Dollars)
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
6/96 16,062 16,849 18,142
</TABLE>
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* -0.43% 5.52% 6.37%
- ------------------------------------------------
Institutional 3.95% 6.53% 7.04%
- ------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
22
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
6/96 10,450 11,118
</TABLE>
Investor B** ***Salomon 1-10
Year Treasury
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
<S> <C> <C>
Investor B** -0.95% 1.85%
- ------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A 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
6/96 16,088 18,142
</TABLE>
Investor C*** ***Salomon 1-10
Year Treasury
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor C*** 2.86% 5.55% 6.39%
- ------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Salomon Brothers 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 predicative of future results. The investment return and NAV will
fluctuate, so that an investor's shares when redeemed, may be worth more or
less than the original cost.
23
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
The U.S. Government Income Fund
Some fixed-income investments suffered less than others as interest rates rose
in the first half of 1996. Lackluster performers in the low-rate environment of
1995, mortgage-backed securities bounced back as interest rates rose and
prepayment fears vanished. Concentrated in higher-yielding, mortgage pass-
through securities issued by U.S. Government agencies, the Fund performed well
as mortgage-backed securities recovered strongly. Moreover, the portfolio's core
holdings of seasoned, high-coupon paper (primarily small, government-assisted
loans paying between 12% and 16%), maintained their value despite the volatility
of the environment, making a substantial contribution to performance.
As a result, we are very pleased to report that for the year ended June 30,
1996, the Fund produced a total return of 5.97% (Investor A Shares).+
As of June 30, 1996, approximately 69% of the Fund's assets were invested in
mortgage-backed securities and commercial mortgage obligations, with 31% in U.S.
Treasury and agency securities.++ Since we expect interest rates to rise
slightly in the months ahead, we believe mortgage-backed securities will
continue to perform well. As a result, we do not anticipate making any major
changes in the Fund's allocation or maturity structure in the near term.
- -------------------------
+ The total return with the maximum sales charge of 4.00% was 1.76% for the
period.
++ The composition of the Fund's portfolio is subject to change.
U.S. GOVERNMENT INCOME FUND
Value of $10,000 Investment
[LINE 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
6/96 11,264 12,307 12,863
</TABLE>
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(11/12/92)
- ------------------------------------------------
<S> <C> <C>
Investor A* 1.76% 4.49%
- ------------------------------------------------
Institutional 6.34% 5.88%
- ------------------------------------------------
* Reflects 4.00% Sales Charge
</TABLE>
24
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
U.S. GOVERNMENT INCOME FUND
[LINE GRAPH OF VALUE OF $10,000 INVESTMENT APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B** Salomon 1-10 Year Treasury
(In Dollars)
<S> <C> <C>
2/94 10,000 10,000
6/94 9,394 9,669
6/95 10,148 10,601
6/96 10,280 11,118
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
<S> <C> <C>
Investor B** 1.30% 3.24%
- ------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
[LINE GRAPH OF VALUE OF $10,000 INVESTMENT APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C*** Salomon 1-10 Year Treasury
(In Dollars)
<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
6/96 11,795 12,863
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year Inception
(11/12/92)
- ------------------------------------------------
<S> <C> <C>
Investor C*** 5.25% 4.65%
- ------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Salomon Brothers 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. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than their
original cost.
25
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
THE MUNICIPAL BOND FUNDS
Much like the taxable markets, the tax-free markets had a volatile year as
investors reacted--and occasionally, overreacted--to reports on the economy's
growth, the direction of interest rates and various tax-reform proposals. Yet,
as the Presidential primary season wound down, the possibility of radical tax
reform any time soon appeared to grow more and more remote. The resurgence in
inflation was a more immediate concern as robust statistics on the economy's
growth unsettled investors in the second half of the period. Interest rates
rose, and fixed-income markets across the board declined.
In this environment, we approached the markets very cautiously and made no
attempt to second-guess the direction of interest rates, the economy or investor
sentiment. As a result, the Funds slightly underperformed industry averages.
Given the circumstances, however, we feel our caution was justified and served
investors well as rates climbed and both Funds produced positive returns for the
12 months ended June 30, 1996.
In the months ahead, we expect to continue to approach the markets cautiously.
Until the direction of the economy and interest rates becomes clearer, investor
sentiment is unlikely to shift dramatically. As a result, no major changes in
the allocation or maturity structure of either portfolio is anticipated in the
near term.
The Municipal Bond Fund
The last half of 1995 was a good one for the Fund, and then, like most funds of
this type, performance fell off as rates began to climb in early 1996. Working
quickly to minimize the impact, we moved maturities in line with industry
averages. In addition, we emphasized investments in premium bonds that were not
expected to be called in early, in order to lessen the effects of the market's
volatility. As a result, despite the excitement of the past six months, we're
pleased to report that for the year ended June 30, 1996, the Fund produced a
total return of 4.29% (Investor A Shares).+
At the end of the period, more than 70% of the Fund's holdings were AAA rated.
The average maturity of our holdings was 8.43 years. The portfolio was widely
diversified, with a maximum of 7% of its assets currently invested in any one
state.++
- ---------------
+ The total return with the maximum sales charge of 4.00% was 0.15% for the
period.
++ The composition of the Fund's portfolio is subject to change.
26
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
MUNICIPAL BOND FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A Institutional Lehman Brothers
Municipal
<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
6/96 15,285 16,019 18,106
</TABLE>
Investor A* Institutional ***Lehman Brothers
Municipal
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* 0.15% 5.20% 5.69%
- ------------------------------------------------
Institutional 4.55% 6.19% 6.33%
- ------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B Lehman Brothers
Municipal
<S> <C> <C>
2/94 10,000 10,000
6/94 9,277 9,450
6/95 9,870 10,279
6/96 10,322 10,983
</TABLE>
Investor B*** ***Lehman Brothers
Municipal
Average Annual Total Return
As of June 30, 1996
- ------------------------------------------------
<TABLE>
<CAPTION>
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
<S> <C> <C>
Investor B** -0.52% 1.33%
- ------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Lehman Brothers Municipal Bond Index,
which represents the performance of the municipal bond 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 Municipal Bond Fund reflects the deduction of fees
for these value-added services. Past performance is not predictive of future
results. The investment return and NAV will fluctuate, so that an investors
shares, when redeemed, may be worth more or less than the original cost.
27
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
The Michigan Municipal Bond Fund
While much less tumultuous than the national markets, the Michigan municipal
market saw some volatility and declined in the face of rising interest rates. We
worked as quickly as possible, however, to minimize the effects of the shift in
investor sentiment by shortening maturities. In addition, much as we did in the
Municipal Bond Fund, we emphasized investments in premium bonds with attractive
call features over discount bonds. Unlike discount bonds, these issues do not
snap rapidly upward in response to market rallies, but more important for a
market such as this, they have tended to do a better job of maintaining value in
downward-trending markets.
As a result of these efforts, we are pleased to report that for the year ended
June 30, 1996, the Fund posted a total return of 4.87% (Investor A Shares).+ As
of the same date, the average maturity of the Fund was 8.71 years, and the
average credit quality of the holdings in the portfolio was AA.++
- ---------------
+ The total return with the maximum sales charge of 4.00% was 0.65% for the
period.
++ The composition of the Fund's portfolio is subject to change.
28
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
MICHIGAN MUNICIPAL BOND FUND
[LINE GRAPH OF VALUE OF $10,000 INVESTMENT APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
(In Dollars)
Shearson 3-15
Investor A* Institutional Year 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
6/96 13,368 14,611 15,499
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* 0.65% 5.47% 5.68%
- ------------------------------------------------
Institutional 5.12% 6.47% 6.52%
- ------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
[LINE GRAPH OF VALUE OF $10,000 INVESTMENT APPEARS HERE]
<TABLE>
<CAPTION>
Value of $10,000 Investment
(In Dollars)
Shearson 3-15
Investor B** Year Municipal
<S> <C> <C>
2/94 10,000 10,000
6/94 9,251 9,566
6/95 9,848 10,405
6/96 9,861 11,040
</TABLE>
Average Annual Total Return
As of June 30, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
<S> <C> <C>
Investor B** 0.13% 1.51%
- ------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
The Fund's performance is compared to the Shearson 3-15 year Municipal Index,
which represents the performance of municipal 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 Michigan Municipal Bond Fund reflects the deduction
of fees for these value-added services. Past performance is not predictive of
future results. The investment return and NAV will fluctuate, so that an
investors shares, when redeemed, may be worth more or less than the original
cost.
29
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE MUTUAL FUNDS JUNE 30, 1996
THE MONEY MARKET FUNDS*
It was a roller-coaster year in the money markets. Throughout much of the second
half of 1995, investors anticipated that interest rates would decline. Yet, as
1996 began, reports of stronger-than-expected economic growth sparked
inflationary fears, and rates rose rapidly. Throughout the spring, as data
continued to reinforce the view that the economy was accelerating, investors
began to expect the Federal Reserve Board to increase rates to dampen
inflationary pressure. If past history is any guide, however, the Federal
Reserve is more likely to move more slowly and cautiously than investors expect.
Nevertheless, we would not be surprised to see rates hiked before the end of the
year in an effort to slow the economy's growth. Given this expectation, we
continue to approach the markets very cautiously. Maturities have been pulled
in slightly to the 40-day range in an effort to position the Funds to take
advantage of the steepening yield curve as interest rates move higher.
. The Prime Obligations Fund: As of June 30, 1996, approximately 20% of the
Fund's assets were invested in overnight securities, and the Fund's average
maturity was 41 days.
. The U.S. Government Obligations Fund: As of June 30, 1996, approximately 40%
of the Fund's assets were invested in overnight securities, and the Fund's
average maturity equaled 43 days.
. The Treasury Fund: Approximately 70% of the Fund's assets were invested in
repurchase agreements as of June 30, 1996, and the Fund's average maturity was
41 days.
. The Tax-Free Fund:* As of June 30, 1996, the average maturity of the
portfolio was approximately 56 days.
- --------------
* The Fund's income may be subject to certain state and local taxes and,
depending on an investor's tax status, the federal alternative minimum tax.
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.
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.
The Parkstone Mutual Funds are a family of mutual funds that are 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.
30
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
To the Shareholders and Trustees of
The Parkstone Group of Funds
We have audited the accompanying statements of assets and liabilities of The
Parkstone Group of Funds (comprising, respectively, the Prime Obligations Fund,
U.S. Government Obligations Fund, Treasury Fund, Tax-Free Fund, High Income
Equity Fund, Large Capitalization Fund, Equity Fund, Small Capitalization Fund,
International Discovery Fund, Balanced Fund, Limited Maturity Bond Fund,
Intermediate Government Obligations Fund, U.S. Government Income Fund, Bond
Fund, Municipal Bond Fund, and Michigan Municipal Bond Fund), including the
schedules of portfolio investments, as of June 30, 1996, and the related
statements of operations, statements of changes in net assets, and the financial
highlights for each of the periods presented. These financial statements and
financial highlights are the responsibility of The Parkstone Group of Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
June 30, 1996 by correspondence with the custodian and brokers or other auditing
procedures where confirmations from brokers were not received. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds comprising The Parkstone Group of Funds as of June 30,
1996, and the results of their operations and the changes in their net assets
and the financial highlights for the periods referred to above in conformity
with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Columbus, Ohio
August 23, 1996
31
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
U.S.
Prime Government
Obligations Obligations Treasury Tax-Free
Fund Fund Fund Fund
----------- ----------- -------- --------
Assets:
<S> <C> <C> <C> <C>
Investments, at value (Cost
$663,240; $231,933; $99,779; and
$150,606, respectively)............ $663,240 $231,933 $ 99,779 $150,606
Repurchase agreements, at cost...... 82,057 163,632 283,652 --
-------- -------- -------- --------
Total Investments................... 745,297 395,565 383,431 150,606
Cash................................ 12 8 -- 2
Interest and dividends receivable... 1,226 394 128 1,110
Prepaid expenses and other assets... 13 6 6 3
-------- -------- -------- --------
Total Assets........................ 746,548 395,973 383,565 151,721
-------- -------- -------- --------
Liabilities:
Dividends payable................... 2,820 1,481 1,303 304
Payable to brokers for investments
purchased.......................... -- -- -- 3,512
Accrued expenses and other payables:
Investment advisory fees......... 24 13 13 5
Administration fees.............. 64 34 18 12
12b-1 fees (Investor A).......... 13 16 13 6
Accounting and transfer
agent fees...................... 5 4 3 1
Other............................ 69 30 76 14
-------- -------- -------- --------
Total Liabilities................... 2,995 1,578 1,426 3,854
-------- -------- -------- --------
Net Assets:
Capital............................. 743,558 394,399 382,170 147,839
Undistributed (distributions in
excess of) net investment income... 1 1 (31) --
Accumulated undistributed net
realized gains (losses) from
investment transactions............ (6) (5) -- 28
-------- -------- -------- --------
Net Assets.......................... $743,553 $394,395 $382,139 $147,867
======== ======== ======== ========
Net Assets
Investor A....................... $147,478 $186,944 $158,723 $ 41,713
Institutional.................... 596,075 207,451 223,416 106,154
-------- -------- -------- --------
Total......................... $743,553 $394,395 $382,139 $147,867
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A....................... 147,476 186,947 158,726 41,705
Institutional.................... 596,085 207,455 223,427 106,134
-------- -------- -------- --------
Total......................... 743,561 394,402 382,153 147,839
======== ======== ======== ========
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
======== ======== ======== ========
</TABLE>
See notes to financial statements.
32
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
High
Income Large Small
Equity Capitalization Equity Capitalization
Fund Fund Fund Fund
------ -------------- ------ --------------
Assets:
<S> <C> <C> <C> <C>
Investments, at value
(Cost $325,982; $228,308;
$482,470; and $419,250,
respectively)..................... $421,495 $238,895 $720,987 $739,593
Repurchase agreements, at
cost.............................. 9,520 37,566 7,686 13,462
-------- -------- -------- --------
Total Investments.................. 431,015 276,461 728,673 753,055
Cash............................... -- 10 -- --
Interest and dividends
receivable........................ 1,562 194 146 8
Receivable from brokers
for investments sold.............. -- -- 4,941 1,691
Receivable for capital
shares issued..................... 87 -- 154 354
Prepaid expenses and other
assets............................ 8 32 22 46
-------- -------- -------- --------
Total Assets....................... 432,672 276,697 733,936 755,154
-------- -------- -------- --------
Liabilities:
Payable to brokers for
investments purchased............. -- -- -- 2,825
Payable for capital shares
redeemed.......................... 55 -- 16 139
Accrued expenses and other
payables:
Investment advisory fees........ 35 18 60 60
Administration fees............. 39 23 71 67
12b-1 fees (Investor A)......... 17 -- 14 34
12b-1 fees (Investor B)......... 8 -- 10 18
12b-1 fees (Investor C)......... -- -- 1 3
Accounting and transfer
agent fees..................... 13 5 7 7
Other........................... 37 10 74 58
-------- -------- -------- --------
Total Liabilities.................. 204 56 253 3,211
-------- -------- -------- --------
Net Assets:
Capital............................ 304,988 266,095 334,664 359,453
Undistributed
(distributions in excess
of) net investment income......... 512 33 -- --
Net unrealized
appreciation from
investments....................... 95,513 10,587 238,517 320,343
Accumulated undistributed
net realized gains
(losses) from investment
transactions...................... 31,455 (74) 160,502 72,147
-------- -------- -------- --------
Net Assets......................... $432,468 $276,641 $733,683 $751,943
======== ======== ======== ========
Net Assets
Investor A...................... $ 82,396 $ 1,657 $ 66,260 $187,016
Investor B...................... 12,590 832 15,840 30,310
Investor C...................... 164 2 1,088 5,751
Institutional................... 337,318 274,150 650,495 528,866
-------- -------- -------- --------
Total........................ $432,468 $276,641 $733,683 $751,943
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A...................... 4,760 147 3,199 5,473
Investor B...................... 729 74 781 897
Investor C...................... 9 -- 53 170
Institutional................... 19,497 24,378 31,230 15,329
-------- -------- -------- --------
Total........................ 24,995 24,599 35,263 21,869
======== ======== ======== ========
Net Asset Value --
offering and redemption
price per share
Investor A...................... $17.31 $11.23 $20.71 $34.17
======== ======== ======== ========
Investor B *.................... $17.27 $11.22 $20.28 $33.78
======== ======== ======== ========
Investor C *.................... $17.36 $11.16 $20.36 $33.83
======== ======== ======== ========
Institutional................... $17.30 $11.25 $20.83 $34.50
======== ======== ======== ========
Maximum Sales Charge
(Investor A)...................... 4.50% 4.50% 4.50% 4.50%
======== ======== ======== ========
Maximum Offering Price
(100%/(100%--Maximum
Sales Charge) of net
asset value adjusted to
nearest cent) per share
(Investor A)...................... $18.13 $11.76 $21.69 $35.78
======== ======== ======== ========
</TABLE>
- ----------------------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
33
<PAGE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
(Amounts in Thousands, except Per Share Amounts)
Intermediate
International Limited Government
Discovery Balanced Maturity Bond Obligations
Fund Fund Fund Fund
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost $327,130; $112,755;
$145,708; and $243,896, respectively)............... $399,196 $129,776 $144,532 $244,144
Repurchase agreements, at cost....................... -- 3,579 5,717 4,634
-------------- -------------- -------------- --------------
Total Investments.................................... 399,196 133,355 150,249 248,778
Cash................................................. 17,714 -- -- 7
Interest and dividends receivable.................... 1,055 1,079 2,607 4,864
Foreign Currency (Cost $193, $15, $0 and $0,
respectively)....................................... 193 15 -- --
Receivable from brokers for investments sold......... 1,333 7,922 9,657 3,654
Receivable for capital shares issued................. 37 22 15 --
Prepaid expenses and other assets.................... 29 8 12 11
Receivable for foreign currency contracts
purchased........................................... 3,538 55 -- --
-------------- -------------- -------------- --------------
Total Assets......................................... 423,095 142,456 162,540 257,314
-------------- -------------- -------------- --------------
Liabilities:
Payable to brokers for investments purchased......... 9,256 7,169 9,654 6,894
Payable for capital shares redeemed.................. 33 7 6 32
Accrued expenses and other payables:
Investment advisory fees..................... 39 8 7 14
Administration fees.......................... 38 12 11 17
12b-1 fees (Investor A)...................... 8 3 3 5
12b-1 fees (Investor B)...................... 6 3 1 1
Accounting and transfer agent fees........... 7 3 8 10
Other........................................ 75 21 221 151
-------------- -------------- -------------- --------------
Total Liabilities.................................... 9,462 7,226 9,911 7,124
-------------- -------------- -------------- --------------
Net Assets:
Capital.............................................. 354,878 110,729 162,562 265,336
Undistributed net investment income.................. (1,067) 329 -- --
Net unrealized appreciation (depreciation) from
investments and translation of assets and
liabilities in foreign currencies................... 72,052 17,021 (1,176) 248
Accumulated undistributed net realized gains
(losses) from investment and foreign currency
transactions........................................ (12,230) 7,151 (8,757) (15,394)
-------------- -------------- -------------- --------------
Net Assets........................................... $413,633 $135,230 $152,629 $250,190
============== ============== ============== ==============
Net Assets
Investor A................................... $ 39,575 $ 17,097 $ 14,390 $ 22,954
Investor B................................... 9,489 4,278 1,547 1,843
Investor C................................... 474 362 11 80
Institutional................................ 364,095 113,493 136,681 225,313
-------------- -------------- -------------- --------------
Total................................ $413,633 $135,230 $152,629 $250,190
============== ============== ============== ==============
Outstanding units of beneficial interest (shares)
Investor A................................... 2,824 1,279 1,518 2,365
Investor B................................... 689 320 163 191
Investor C................................... 34 27 1 8
Institutional................................ 25,802 8,490 14,412 23,210
-------------- -------------- -------------- --------------
Total................................ 29,349 10,116 16,094 25,774
============== ============== ============== ==============
Net Asset Value --
offering and redemption price per share
Investor A................................... $14.01 $13.37 $9.48 $9.70
============== ============== ============== ==============
Investor B *................................. $13.77 $13.36 $9.46 $9.67
============== ============== ============== ==============
Investor C *................................. $14.08 $13.28 $9.29 $9.52
============== ============== ============== ==============
Institutional................................ $14.11 $13.37 $9.48 $9.71
============== ============== ============== ==============
Maximum Sales Charge (Investor A).................... 4.50% 4.50% 4.00% 4.00%
============== ============== ============== ==============
Maximum Offering Price (100%/(100%--Maximum
Sales Charge) of net asset value adjusted to
nearest cent) per share (Investor A)............... $14.67 $14.00 $9.88 $10.10
============== ============== ============== ==============
- -----------
* Redemption price per share varies by
length of time shares are held.
</TABLE>
See notes to financial statements.
[34]
<PAGE>
================================================================================
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
U.S. Michigan
Government Municipal Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- ----- --------- ---------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost $198,535; $568,065; $136,462; and
$215,610, respectively)............................................... $199,082 $566,461 $138,411 $221,944
Repurchase agreements, at cost.......................................... -- 970 -- --
-------- -------- -------- --------
Total Investments....................................................... 199,082 567,431 138,411 221,944
Cash.................................................................... -- 1 -- --
Interest and dividends receivable....................................... 3,153 6,847 2,904 3,564
Receivable from brokers for investments sold............................ 12,373 -- 2,174 --
Receivable for capital shares issued.................................... 128 26 11 11
Prepaid expenses and other assets....................................... 10 13 1 --
-------- -------- -------- --------
Total Assets............................................................ 214,746 574,318 143,501 225,519
-------- -------- -------- --------
Liabilities:
Cash overdraft.......................................................... 24 -- 40 2
Payable to brokers for investments purchased............................ 11,663 -- 2,127 --
Payable for capital shares redeemed..................................... 90 39 51 4
Accrued expenses and other payables:
Investment advisory fees............................................ 7 33 6 10
Administration fees................................................. 14 40 7 10
12b-1 fees (Investor A)............................................. 11 4 2 7
12b-1 fees (Investor B)............................................. 12 3 -- 2
Accounting and transfer agent fees.................................. 2 7 5 7
Other............................................................... 432 45 166 40
-------- -------- -------- --------
Total Liabilities....................................................... 12,255 171 2,404 82
-------- -------- -------- --------
Net Assets:
Capital................................................................. 211,937 598,758 138,413 218,312
Undistributed net investment income..................................... -- 213 80 85
Net unrealized appreciation (depreciation) from investments............. 547 (1,604) 1,949 6,334
Accumulated undistributed net realized gains (losses) from
investment transactions............................................... (9,993) (23,220) 655 660
-------- -------- -------- --------
Net Assets.............................................................. $202,491 $574,147 $141,097 $225,437
======== ======== ======== ========
Net Assets
Investor A.......................................................... $ 52,250 $ 20,175 $ 7,835 $ 36,681
Investor B.......................................................... 19,556 4,426 735 3,565
Investor C.......................................................... 70 210 -- --
Institutional....................................................... 130,615 549,336 132,527 185,191
-------- -------- -------- --------
Total........................................................... $202,491 $574,147 $141,097 $225,437
======== ======== ======== ========
Outstanding units of beneficial interest (shares)
Investor A.......................................................... 5,651 2,122 751 3,408
Investor B.......................................................... 2,122 465 71 331
Investor C.......................................................... 8 22 -- --
Institutional....................................................... 14,121 57,475 12,704 17,195
-------- -------- -------- --------
Total........................................................... 21,902 60,084 13,526 20,934
======== ======== ======== ========
Net Asset Value -- offering and redemption price per share
Investor A.......................................................... $9.25 $ 9.51 $10.43 $10.76
======== ======== ======== ========
Investor B *........................................................ $9.21 $9.51 $10.39 $10.76
======== ======== ======== ========
Investor C *........................................................ $9.19 $9.47 -- --
======== ======== ======== ========
Institutional....................................................... $9.25 $9.56 $10.43 $10.77
======== ======== ======== ========
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)... $9.64 $9.91 $10.86 $11.21
======== ======== ======== ========
</TABLE>
- -------------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
35
<PAGE>
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government
Obligations Obligations Treasury Tax-Free
Fund Fund Fund Fund
----------- --------------- -------- --------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.............................................. $44,113 $23,041 $18,128 $5,650
Dividend Income.............................................. 569 -- -- 72
------- ------- ------- ------
Total Income................................................. 44,682 23,041 18,128 5,722
------- ------- ------- ------
Expenses:
Investment advisory fees..................................... 3,144 1,639 1,301 629
Administration fees.......................................... 1,572 819 650 315
12b-1 fees (Investor A)...................................... 352 466 297 127
Custodian and accounting fees................................ 213 114 96 51
Legal and audit fees......................................... 46 21 20 7
Trustees' fees and expenses.................................. 9 4 4 2
Transfer agent fees.......................................... 56 37 29 27
Registration and filing fees................................. 44 31 87 26
Printing costs............................................... 59 34 2 13
Other........................................................ 10 5 4 1
Reverse repurchase agreements................................ -- -- 78 --
------- ------- ------- ------
Total Expenses............................................... 5,505 3,170 2,568 1,198
Expenses voluntarily reduced................................. (369) (362) (504) (108)
------- ------- ------- ------
Net Expenses................................................. 5,136 2,808 2,064 1,090
------- ------- ------- ------
Net Investment Income........................................ 39,546 20,233 16,064 4,632
------- ------- ------- ------
Realized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions..... (6) -- 11 30
------- ------- ------- ------
Change in net assets resulting from operations............... $39,540 $20,233 $16,075 $4,662
======= ======= ======= ======
</TABLE>
See notes to financial statements.
36
<PAGE>
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
(Amounts in Thousands)
High Income Large Small
Equity Capitalization Equity Capitalization
Fund Fund (a) Fund Fund
----------- -------------- ------ --------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income $ 3,147 $ 360 $ 1,694 $ 1,773
Dividend income 11,515 577 3,325 309
Foreign tax withholding (73) -- (4) --
------- ------- -------- --------
Total Income 14,589 937 5,015 2,082
------- ------- -------- --------
Expenses:
Investment advisory fees 4,277 433 8,178 5,765
Administration fees 855 108 1,636 1,153
12b-1 fees (Investor A) 192 2 138 270
12b-1 fees (Investor B) 70 3 78 136
12b-1 fees (Investor C) 1 -- 4 13
Custodian and accounting fees 155 25 286 200
Legal and audit fees 25 4 49 34
Trustees' fees and expenses 5 1 9 6
Transfer agent fees 167 22 241 202
Registration and filing fees 29 13 51 26
Printing costs 48 15 99 69
Other 29 2 39 55
------- ------- -------- --------
Total Expenses 5,853 628 10,808 7,929
Expenses voluntarily reduced -- (29) (5) (12)
------- ------- -------- --------
Net Expenses 5,853 599 10,803 7,917
------- ------- -------- --------
Net Investment Income (Loss) 8,736 338 (5,788) (5,835)
------- ------- -------- --------
Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions 45,001 (74) 176,714 97,422
Change in unrealized appreciation from investments 42,614 10,587 44,007 159,250
------- ------- -------- --------
Net realized/unrealized gains from investments 87,615 10,513 220,721 256,672
------- ------- -------- --------
Change in net assets resulting from operations $96,351 $10,851 $214,933 $250,837
======= ======= ======== ========
</TABLE>
- -------------
(a) For the period from December 28, 1995 (commencement of operations) through
June 30, 1996.
See notes to financial statements.
37
<PAGE>
<TABLE>
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1996
<CAPTION>
(Amounts in Thousands)
Limited Intermediate
International Maturity Government
Discovery Balanced Bond Obligations
Fund Fund Fund Fund
-------- -------- -------- ----------
Investment Income:
<S> <C> <C> <C> <C>
Interest income...................... $ 102 $ 3,946 $11,215 $18,001
Dividend income...................... 6,057 483 -- --
Foreign tax withholding.............. (498) (16) -- --
------- ------- ------ ------
Total Income......................... 5,661 4,413 11,215 18,001
------- ------- ------ ------
Expenses:
Investment advisory fees............. 3,969 1,168 1,155 1,983
Administration fees.................. 677 234 312 536
12b-1 fees (Investor A).............. 93 37 42 63
12b-1 fees (Investor B).............. 53 20 8 11
12b-1 fees (Investor C).............. 2 2 -- --
Custodian and accounting fees........ 365 102 73 105
Legal and audit fees................. 20 6 9 16
Trustees' fees and expenses.......... 4 1 2 3
Transfer agent fees.................. 151 100 97 112
Registration and filing fees......... 29 23 22 22
Printing costs....................... 38 7 18 30
Other................................ 22 9 4 8
Reverse repurchase agreements........ -- 1 -- 8
------- ------- ------- -------
Total Expenses....................... 5,423 1,710 1,742 2,897
Expenses voluntarily reduced......... (5) (293) (375) (241)
------- ------- ------- -------
Net Expenses......................... 5,418 1,417 1,367 2,656
------- ------- ------- -------
Net Investment Income................ 243 2,996 9,848 15,345
------- ------- ------- -------
Realized/Unrealized Gains (Losses)
from Investments and Foreign
Currencies:
Net realized gains (losses) from
investment transactions and foreign
currency transactions............... 9,372 12,212 (1,938) 80
Net change in unrealized appreciation
(depreciation) from investments and
translation of assets and liabilities
in foreign securities............... 38,177 3,923 (764) (4,771)
------- ------- ------ -------
Net realized/unrealized gains (losses)
from investments.................... 47,549 16,135 (2,702) (4,691)
------- ------- ------ -------
Change in net assets resulting from
operations.......................... $47,792 $19,131 $ 7,146 $10,654
======= ======= ======= =======
See notes to financial statements.
</TABLE>
38
<PAGE>
- -------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the year ended June 30, 1996
(Amounts in Thousands)
<TABLE>
<CAPTION>
U.S. Michigan
Government Municipal Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
--------- -------- ------- ---------
<S> <C> <C> <C> <C>
Investment Income:
Interest income...................... $16,279 $ 38,254 $7,139 $11,923
Dividend income...................... -- 44 -- 9
------- -------- ------ -------
Total Income......................... 16,279 38,298 7,139 11,932
------- -------- ------ -------
Expenses:
Investment advisory fees............. 1,385 4,107 1,079 1,654
Administration fees.................. 374 1,110 292 447
12b-1 fees (Investor A).............. 130 46 26 95
12b-1 fees (Investor B).............. 107 20 4 22
12b-1 fees (Investor C).............. -- 1 -- --
Custodian and accounting fees........ 93 211 75 102
Legal and audit fees................. 11 33 9 13
Trustees' fees and expenses.......... 2 6 2 2
Transfer agent fees.................. 151 113 65 96
Registration and filing fees......... 24 27 42 32
Printing costs....................... 22 64 19 25
Other................................ 39 16 3 10
Reverse repurchase agreement......... -- 62 -- --
------- -------- ------ -------
Total Expenses....................... 2,338 5,816 1,616 2,498
Expenses voluntarily reduced......... (638) (501) (423) (648)
------- ------- ------- --------
Net Expenses......................... 1,700 5,315 1,193 1,850
------- ------- ------- -------
Net Investment Income................ 14,579 32,983 5,946 10,082
------- ------- ------- -------
Realized/Unrealized Gains (Losses) from
Investments:
Net realized gains (losses) from
investment transactions............. (3,968) 6,686 1,577 1,191
Change in unrealized appreciation
(depreciation) from investments..... 389 (15,480) (985) (324)
------- ------- ------- -------
Net realized/unrealized gains (losses)
from investments.................... (3,579) (8,794) 592 867
------- ------- ------- -------
Change in net assets resulting from
operations.......................... $11,000 $ 24,189 $6,538 $10,949
======= ======== ====== =======
See notes to financial statements.
</TABLE>
39
<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
------------------- ---------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
--------- -------- --------- ---------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income.......... $ 39,546 $ 34,513 $ 20,233 $ 16,485
Net realized gains (losses)
from investment transactions.. (6) 20 -- 12
----------- --------- ----------- ----------
Change in net assets resulting
from operations............... 39,540 34,533 20,233 16,497
----------- --------- ----------- ---------
Distributions to Investor A
shareholders:
From net investment income..... (6,950) (4,827) (9,106) (7,441)
In excess of net realized
gains from investment
transactions.................. (1) -- -- --
Distributions to Institutional
shareholders:
From net investment income..... (32,595) (29,686) (11,126) (9,043)
In excess of net realized
gains from investment
transactions.................. (4) -- -- --
----------- --------- ----------- ---------
Change in net assets from
shareholder distributions..... (39,550) (34,513) (20,232) (16,484)
----------- --------- ---------- --------
Capital Transactions:
Proceeds from shares issued.... 1,471,595 677,876 1,091,720 880,061
Dividends reinvested........... 6,895 4,182 1,499 1,106
Cost of shares redeemed........ (1,483,872) (600,435) (1,095,569) (849,530)
----------- --------- ----------- ---------
Change in net assets from
share transactions............ (5,382) 81,623 (2,350) 31,637
----------- --------- ----------- ---------
Change in net assets........... (5,392) 81,643 (2,349) 31,650
Net Assets:
Beginning of period............ 748,945 667,302 396,744 365,094
----------- --------- ----------- ---------
End of period.................. $ 743,553 $ 748,945 $ 394,395 $ 396,744
=========== ========= =========== =========
See notes to financial statements.
</TABLE>
40
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Treasury Fund Tax-Free Fund
------------------------- ----------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
--------- ---------- ---------- ----------
From Investment Activities:
<S> <C> <C> <C> <C>
Operations:
Net investment income......... $ 16,064 $ 10,249 $ 4,632 $ 3,952
Net realized gains from
investment transactions..... 11 6 30 10
--------- ---------- ---------- ----------
Change in net assets resulting
from operations................ 16,075 10,255 4,662 3,962
--------- ---------- ---------- ----------
Distributions to Investor A
shareholders:
From net investment income.... (5,795) (4,272) (1,469) (1,390)
From net realized gains from
investment transactions...... (4) -- (4) (4)
In excess of net realized
gains from investment
transactions................. (11) -- -- (11)
Distributions to Institutional
shareholders:
From net investment income.... (10,269) (5,977) (3,163) (2,561)
From net realized gains from
investment transactions...... (7) -- (8) (6)
In excess of net realized
gains from investment
transactions................. (20) -- -- (18)
--------- ---------- ---------- ----------
Change in net assets from
shareholder distributions...... (16,106) (10,249) (4,644) (3,990)
--------- ---------- ---------- ----------
Capital Transactions:
Proceeds from shares issued... 2,002,575 1,281,688 376,346 326,347
Dividends reinvested.......... 493 55 820 659
Cost of shares redeemed....... (1,918,521) (1,116,696) (372,907) (316,109)
--------- ---------- ---------- ----------
Change in net assets from
share transactions............. 84,547 165,047 4,259 10,897
--------- ---------- ---------- ----------
Change in net assets............ 84,516 165,053 4,277 10,869
Net Assets:
Beginning of period........... 297,623 132,570 143,590 132,721
--------- ---------- ---------- ----------
End of period................. $ 382,139 $ 297,623 $ 147,867 $ 143,590
========= ========== ========== ==========
</TABLE>
See notes to financial statements.
41
<PAGE>
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
High Income Large
Equity Capitalization
Fund Fund
---------------------------- --------------
Year Year December 28,
ended ended 1995 to
June 30, June 30, June 30,
1996 1995 1996 (a)
------------ ------------ ------------
<S> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income................................................. $ 8,736 $ 11,977 $ 338
Net realized gains (losses) from investment transactions.............. 45,001 255 (74)
Net change in unrealized appreciation from investments................ 42,614 29,556 10,587
------------ ------------ ------------
Change in net assets resulting from operations................................ 96,351 41,788 10,851
------------ ------------ ------------
Distributions to Investor A shareholders:
From net investment income............................................ (1,414) (1,930) (1)
In excess of net investment income.................................... -- (69) --
From net realized gains from investment transactions.................. (2,095) -- --
Distributions to Investor B shareholders:
From net investment income............................................ (104) (103) --
In excess of net investment income.................................... (7) (7) --
From net realized gains from investment transactions.................. (244) -- --
Distributions to Investor C shareholders:
From net investment income............................................ (1) -- --
From net realized gains from investment transactions.................. (2) -- --
Distributions to Institutional shareholders:
From net investment income............................................ (7,170) (9,943) (304)
In excess of net investment income.................................... -- (312) --
From net realized gains from investment transactions.................. (9,595) -- --
------------ ------------ ------------
Change in net assets from shareholder distributions........................... (20,632) (12,364) (305)
------------ ------------ ------------
Capital Transactions:
Proceeds from shares issued........................................... 50,436 66,329 270,745
Dividends reinvested.................................................. 7,352 4,353 229
Cost of shares redeemed............................................... (125,422) (111,205) (4,879)
------------ ------------ ------------
Change in net assets from share transactions.................................. (67,634) (40,523) 266,095
------------ ------------ ------------
Change in net assets.......................................................... 8,085 (11,099) 276,641
Net Assets:
Beginning of period................................................... 424,383 435,482 --
------------ ------------ ------------
End of period......................................................... $ 432,468 $ 424,383 $ 276,641
============ ============ =============
</TABLE>
- --------------
(a) Period from commencement of operations.
See notes to financial statements.
[42]
<PAGE>
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Capitalization
Equity Fund Fund
---------------------- ----------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment loss.............................................. $ (5,788) $ (4,198) $ (5,835) $ (4,148)
Net realized gains from investment transactions.................. 176,714 18,813 97,422 40,503
Net change in unrealized appreciation from investments........... 44,007 128,902 159,250 103,203
---------- ---------- ---------- ----------
Change in net assets resulting from operations........................... 214,933 143,517 250,837 139,558
---------- ---------- ---------- ----------
Distributions to Investor A shareholders:
From net realized gains from investment transactions............. (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 realized gains from investment transactions............. (333) (90) (1,972) (394)
In excess of net realized gains from investment transactions..... -- (184) -- --
Distributions to Investor C shareholders:
From net realized gains from investment transactions............. (14) -- (67) --
Distributions to Institutional shareholders:
From net realized gains from investment transactions............. (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...................... (28,841) (56,688) (65,778) (35,261)
---------- ---------- ---------- ----------
Capital Transactions:
Proceeds from shares issued...................................... 195,102 137,701 914,251 164,265
Dividends reinvested............................................. 20,862 41,955 47,118 24,703
Cost of shares redeemed.......................................... (401,722) (104,120) (831,418) (172,678)
---------- ---------- ---------- ----------
Change in net assets from share transactions............................. (185,758) 75,536 129,951 16,290
---------- ---------- ---------- ----------
Change in net assets..................................................... 334 162,365 315,010 120,587
Net Assets:
Beginning of period.............................................. 733,349 570,984 436,933 316,346
---------- ---------- ---------- ----------
End of period.................................................... $ 733,683 $ 733,349 $ 751,943 $ 436,933
========== ========== ========== ==========
</TABLE>
See notes to financial statements.
[43]
<PAGE>
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
International
Discovery Fund Balanced Fund
------------------ ------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income....................... $ 243 $ 1,251 $ 2,996 $ 2,511
Net realized gains (losses) from
investment and foreign currency
transactions............................ 9,372 (10,452) 12,212 200
Net change in unrealized
appreciation from investments and
translation of assets and
liabilities in foreign currencies.......... 38,177 2,814 3,923 13,788
------- -------- -------- --------
Change in net assets resulting
from operations............................... 47,792 (6,387) 19,131 16,499
------- -------- -------- --------
Distributions to Investor A
shareholders:
From net investment income.................. -- -- (338) (311)
In excess of net investment income.......... (30) -- -- (2)
From net realized gains from
investment and foreign currency
transactions.............................. -- -- (668) (10)
In excess of net realized gains
from investment and foreign
currency transactions..................... -- (1,732) -- (164)
Distributions to Investor B
shareholders:
From net investment income.................. -- -- (41) (16)
In excess of net investment income.......... -- -- -- --
From net realized gains from
investment and foreign currency
transactions.............................. -- -- (119) (5)
In excess of net realized gains
from investment and foreign
currency transactions..................... -- (193) -- (8)
Distributions to Investor C
shareholders:
From net investment income.................. -- -- (4) --
In excess of net investment income.......... (1) -- -- --
From net realized gains from
investment and foreign currency
transactions.............................. -- -- (9) --
In excess of net realized gains
from investment and foreign
currency transactions..................... -- -- -- --
Distributions to Institutional
shareholders:
From net investment income.................. (243) -- (2,494) (2,184)
In excess of net investment income.......... (528) -- -- --
From net realized gains from
investment and foreign currency
transactions.............................. -- -- (4,422) (185)
In excess of net realized gains
from investment and foreign
currency transactions..................... -- (12,641) -- (950)
------- -------- -------- --------
Change in net assets from
shareholder distributions..................... (802) (14,566) (8,095) (3,835)
------- -------- -------- --------
Capital Transactions:
Proceeds from shares issued.................... 291,763 96,444 42,664 29,144
Dividends reinvested........................... 444 8,884 6,646 3,015
Cost of shares redeemed........................ (230,102) (80,612) (28,664) (25,347)
------- -------- -------- --------
Change in net assets from share
transactions.................................. 62,105 24,716 20,646 6,812
------- -------- -------- --------
Change in net assets........................... 109,095 3,763 31,682 19,476
Net Assets:
Beginning of period............................ 304,538 300,775 103,548 84,072
------- -------- -------- --------
End of period.................................. $413,633 $304,538 $135,230 $103,548
======= ======== ======== ========
</TABLE>
See notes to financial statements.
44
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Intermediate
Limited Maturity Government
Bond Fund Obligations Fund
----------------- ------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income $9,848 $ 10,317 $ 15,345 $ 15,676
Net realized gains (losses) from
investment transactions (1,938) (2,451) 80 (3,520)
Net change in unrealized
appreciation (depreciation) from
investments (764) 4,315 (4,771) 11,732
-------- -------- -------- --------
Change in net assets resulting
from operations 7,146 12,181 10,654 23,888
-------- -------- -------- --------
Distributions to Investor A
shareholders:
From net investment income (1,014) (1,254) (1,390) (1,599)
In excess of net investment income (40) -- (69) (11)
Tax return of capital (63) -- (22) (12)
Distributions to Investor B
shareholders:
From net investment income (57) (40) (68) (36)
In excess of net investment income (1) -- (3) --
Tax return of capital (4) -- (1) --
Distributions to Investor C
shareholders:
From net investment income -- -- (3) --
Distributions to Institutional
shareholders:
From net investment income (8,776) (8,886) (13,884) (14,041)
In excess of net investment income (290) -- (691) (11)
Tax return of capital (535) -- (215) (101)
-------- -------- -------- --------
Change in net assets from
shareholder distributions (10,780) (10,180) (16,346) (15,811)
-------- -------- -------- --------
Capital Transactions:
Proceeds from shares issued 33,795 41,873 50,593 42,567
Dividends reinvested 4,860 4,729 4,873 4,590
Cost of shares redeemed (43,995) (69,214) (77,260) (95,427)
-------- -------- -------- --------
Change in net assets from share
transactions (5,340) (22,612) (21,794) (48,270)
-------- -------- -------- --------
Change in net assets (8,974) (20,611) (27,486) (40,193)
Net Assets:
Beginning of period 161,603 182,214 277,676 317,869
-------- -------- -------- --------
End of period $152,629 $161,603 $250,190 $277,676
======== ======== ======== ========
</TABLE>
See notes to financial statements.
45
<PAGE>
Statements of Changes in Net Assets
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Government
Income Fund Bond Fund
------------------ --------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
------- -------- --------- ---------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income........................ $ 14,579 12,830 $ 32,983 $ 32,344
Net realized gains (losses) from
investment transactions..................... (3,968) (6,429) 6,686 (4,835)
Net change in unrealized
appreciation (depreciation) from
investments................................. 389 6,500 (15,480) 28,130
------- -------- --------- ---------
Change in net assets resulting
from operations............................. 11,000 12,901 24,189 55,639
------- -------- --------- ---------
Distributions to Investor A
shareholders:
From net investment income................... (3,573) (3,566) (1,061) (1,111)
In excess of net investment income........... -- -- (15) (13)
Tax return of capital........................ (440) (409) -- --
Distributions to Investor B
shareholders:
From net investment income................... (879) (307) (131) (47)
From net realized gains from
investment transactions..................... -- -- (2) --
Tax return of capital........................ (108) (36) -- --
Distributions to Investor C
shareholders:
From net investment income................... (2) -- (6) --
Distributions to Institutional
shareholders:
From net investment income................... (8,525) (7,592) (31,785) (31,186)
In excess of net investment income........... -- -- (443) (187)
Tax return of capital........................ (1,052) (870) -- --
------- -------- --------- ---------
Change in net assets from
shareholder distributions................... (14,579) (12,780) (33,443) (32,544)
------- -------- --------- ---------
Capital Transactions:
Proceeds from shares issued................ 65,682 45,990 136,614 78,680
Dividends reinvested....................... 3,922 3,618 23,823 22,255
Cost of shares redeemed.................... (33,163) (38,420) (105,155) (84,690)
------- -------- --------- ---------
Change in net assets from share
transactions................................ 36,441 11,188 55,282 16,245
------- -------- --------- ---------
Change in net assets......................... 32,862 11,309 46,028 39,340
Net Assets:
Beginning of period.......................... 169,629 158,320 528,119 488,779
------- -------- --------- ---------
End of period................................ $202,491 $169,629 $ 574,147 $528,119
======= ======== ========= =========
</TABLE>
See notes to financial statements.
46
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Municipal Bond Michigan Municipal
Fund Bond Fund
------------------ -------------------
Year Year Year Year
ended ended ended ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
-------- -------- -------- --------
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income.......................... $ 5,946 $ 6,302 $ 10,082 $ 10,282
Net realized gains (losses) from
investment transactions....................... 1,577 (907) 1,191 360
Net change in unrealized
appreciation (depreciation) from
investments................................... (985) 4,443 (324) 3,956
-------- -------- -------- --------
Change in net assets resulting
from operations............................... 6,538 9,838 10,949 14,598
-------- -------- -------- --------
Distributions to Investor A
shareholders:
From net investment income..................... (394) (495) (1,652) (1,798)
In excess of net investment income............. -- (11) -- (44)
From net realized gains from
investment transactions....................... -- -- (125) --
In exess of net realized gains
from investment transactions.................. -- (211) -- --
Tax return of capital.......................... -- (4) -- --
Distributions to Investor B
shareholders:
From net investment income..................... (18) (12) (107) (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..................... (5,465) (5,795) (8,321) (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..................... (5,881) (8,989) (10,805) (10,516)
-------- -------- -------- --------
Capital Transactions:
Proceeds from shares issued.................. 37,655 24,195 41,685 31,191
Dividends reinvested......................... 654 1,186 2,574 2,615
Cost of shares redeemed...................... (44,478) (40,790) (35,178) (46,233)
-------- -------- -------- --------
Change in net assets from share
transactions.................................. (6,169) (15,409) 9,081 (12,427)
-------- -------- -------- --------
Change in net assets (5,512) (14,560) 9,225 (8,345)
Net Assets:
Beginning of period............................ 146,609 161,169 216,212 224,557
-------- -------- -------- --------
End of period.................................. $141,097 $146,609 $225,437 $216,212
======== ======== ======== ========
</TABLE>
See notes to financial statements.
47
<PAGE>
================================================================================
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ---------------------------------------------------- ------------
<C> <S> <C>
Certificates Of Deposit (2.0%):
Banking (2.0%):
5,000 Bank of America Securities, 5.24%, 7/24/96.............. $ 5,000
10,000 Bayerische Landesbank, 5.60%, 11/20/96.................. 10,010
-------
Total Certificates Of Deposit....................................... 15,010
-------
Commercial Paper (65.4%):
Agriculture (4.0%):
7,000 Cargill Financial Services Corp., 5.18%, 7/9/96**....... 6,992
5,000 Cargill Financial Services Corp., 4.92%, 8/26/96........ 4,962
7,000 Cargill Financial Services Corp., 5.36%, 12/31/96....... 6,809
5,000 Cargill Financial Services Corp., 5.41%, 2/3/97......... 4,837
6,000 Monsanto, 5.29%, 8/23/96................................ 5,953
-------
29,553
-------
Aircraft (1.6%):
5,000 General Electric Capital Corp., 5.36%, 10/4/96.......... 4,929
7,000 International Lease Finance Co., 5.30%, 8/26/96......... 6,942
-------
11,871
-------
Automotive (5.6%):
7,000 Echlin Inc., 5.35%, 7/8/96.............................. 6,993
3,000 Echlin Inc., 5.28%, 7/10/96............................. 2,996
10,000 General Motors Acceptance Corp., 5.35%, 12/16/96........ 9,750
7,000 New Center Asset Trust, 5.37%, 7/19/96.................. 6,981
5,000 New Center Asset Trust, 5.43%, 11/4/96.................. 4,905
10,000 Nippondenso America, 5.33%, 8/9/96...................... 9,942
-------
41,567
-------
Banking (3.0%):
5,000 Anz, Delaware, 5.30%, 7/18/96........................... 4,987
7,000 Bank of Scotland, 5.20%, 7/12/96........................ 6,989
5,051 First Chicago NBD, 5.38%, 7/23/96....................... 5,034
5,000 Societe Generale, 5.15%, 7/15/96........................ 4,990
-------
22,000
-------
Banking & Financial Services (3.9%):
5,000 ABN-AMRO, 5.30%, 11/29/96............................... 4,889
7,000 Chemical Bank NY, 4.95%, 7/15/96........................ 6,987
7,000 Goldman Sachs, 5.17%, 7/11/96........................... 6,990
10,000 JP Morgan, 4.95%, 8/26/96............................... 9,923
-------
28,789
-------
Beverages (0.6%):
4,588 Brown-Foreman, 5.37%, 8/13/96........................... 4,559
-------
Chemicals (0.9%):
7,000 Akzo Nobel, 5.31%, 7/22/96.............................. 6,978
-------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ---------------------------------------------------- ------------
<C> <S> <C>
Commercial Paper, continued:
Construction (1.3%):
5,000 Cemex Corp., LOC: Credit Suisse, 5.32%, 7/18/96................. $ 4,987
5,000 Cemex Corp., 5.30%, 8/21/96..................................... 4,962
-------
9,949
-------
Consumer Goods & Services (2.6%):
5,000 American Brands, Inc., 5.33%, 7/24/96........................... 4,983
5,000 American Brands, Inc., 5.37%, 8/12/96........................... 4,969
5,000 American Brands, Inc., 5.36%, 1/15/97........................... 4,853
5,000 Chase Manhattan Corp., 5.30%, 11/26/96.......................... 4,891
-------
19,696
-------
Diversified (6.3%):
10,000 Daimler Benz Corp., 5.26%, 7/18/96.............................. 9,975
5,000 Hanson Finance, 5.35%, 7/22/96.................................. 4,984
5,000 Hanson Financial, 5.35%, 8/7/96................................. 4,973
5,000 Mitsubishi International, 5.27%, 9/24/96........................ 4,938
7,000 Monsanto, 4.90%, 7/31/96**...................................... 6,971
5,000 Pacific Dunlop Holdings, 5.31%, 7/31/96......................... 4,978
5,000 Pearson, 5.32%, 7/8/96.......................................... 4,995
5,000 Pearson, 5.40%, 7/17/96......................................... 4,988
-------
46,802
-------
Electric Utility (2.9%):
7,000 Electicite De France, 5.10%, 7/22/96............................ 6,979
5,000 Florida Power And Light, 5.40%, 7/29/96......................... 4,979
5,000 Southern Co., 5.33%, 8/7/96..................................... 4,973
5,000 Vattenfall Treasury Ab, 5.33%, 10/16/96......................... 4,921
-------
21,852
-------
Electrical & Electronic (3.6%):
5,000 Avnet, 5.40%, 8/14/96........................................... 4,967
10,000 Mitsubishi Electronic Finance, 5.30%, 7/3/96**.................. 9,997
7,000 Sharp Electronics, 5.33%, 7/3/96................................ 6,998
5,000 Sony Capital, 5.32%, 7/9/96..................................... 4,994
-------
26,956
-------
Entertainment (2.0%):
15,000 Walt Disney, 5.55%, 7/1/96...................................... 15,000
-------
Financial & Insurance (0.7%):
5,000 Internationale Nederlanden Funding, 5.27%, 7/9/96............... 4,994
-------
Financial Services (8.9 %):
5,000 Alamo Funding, 5.38%, 7/22/96................................... 4,984
5,000 American Express, 5.29%, 8/15/96................................ 4,967
5,000 Associates Corp. NA, 5.29%, 8/15/96............................. 4,967
5,000 Island Finance Puerto Rico, 5.38%, 8/14/96...................... 4,967
10,000 Island Finance Pureto Rico, 5.31%, 8/15/96...................... 9,934
7,000 Merrill Lynch, 5.38%, 8/1/96.................................... 6,968
5,000 Norwest Corp., 5.37%, 8/19/96................................... 4,963
5,000 Panasonic Financial, 5.35%, 7/9/96.............................. 4,994
5,000 Pemex, 5.33%, 9/4/96............................................ 4,952
</TABLE>
48
<PAGE>
================================================================================
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ----------------------------------------------- --------------
<C> <S> <C>
Commercial Paper, continued:
Financial Services, continued:
7,000 Teco Finance Inc., 5.30%, 7/29/96........................... $ 6,971
7,000 Transamerica Financial, 5.27%, 8/21/96...................... 6,948
--------
65,615
--------
Foreign Banking & Financial Services (2.9%):
5,000 International Luxembourg Bank, 5.33%, 7/19/96............... 4,987
5,000 Kredietbank NA Financial, 5.35%, 7/10/96.................... 4,993
5,000 Kredietbank, NA Financial, 5.33%, 11/18/96.................. 4,896
7,000 Svenska Handlesbanken, 5.01%, 9/4/96........................ 6,937
--------
21,813
--------
Governments (0.7%):
5,000 Province Of Quebec, 5.31%, 11/25/96......................... 4,892
--------
Industrial Goods & Services (1.6%):
5,000 Avnet, 5.34%, 9/4/96........................................ 4,952
7,000 Sherwin-Williams Co., 5.18%, 7/10/96........................ 6,991
--------
11,943
--------
Insurance (3.3%):
5,000 Allianz Of America Financial, 5.33%, 8/1/96................. 4,977
10,000 International Nederladen Holdings, 5.33%, 7/8/96............ 9,990
5,000 International Netherlade, 5.42%, 7/29/96.................... 4,979
5,000 Liberty Mutual Capital, 5.41%, 8/27/96**.................... 4,957
--------
24,903
--------
Machinery & Equipment (0.5%):
4,000 Caterpillar Financial, 5.30%, 10/2/96....................... 3,945
--------
Manufacturing-Capital Goods (0.7%):
5,000 Atlas Copco, 5.30%, 9/11/96**............................... 4,947
--------
Materials (2.8%):
9,000 Aga Capital Corp., 5.37%, 7/17/96........................... 8,979
7,000 BTR-Dunlop, 5.32%, 7/2/96................................... 6,999
5,000 Rexam, 5.38%, 8/12/96....................................... 4,969
--------
20,947
--------
Oil & Gas Exploration Products & Services (0.7%):
5,000 Burmah Castrol Finance, 5.31%, 8/21/96...................... 4,962
--------
Oil & Gas Transmission (0.9%):
7,000 Explorer Pipeline, 5.38%, 7/29/96........................... 6,971
--------
Pharmaceuticals (0.7%):
5,000 Glaxo Wellcome, 5.31%, 7/3/96............................... 4,999
--------
Telecommunications (2.7%):
5,000 Ameritech(4/2), 5.41%, 8/27/96.............................. 4,957
10,000 AT&T/Lucent Tech, 5.28%, 7/31/96............................ 9,956
5,000 Southern New England Telephone, 5.35%, 7/12/96.............. 4,992
--------
19,905
--------
Total Commercial Paper 486,408
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ----------------------------------------------- --------------
<C> <S> <C>
Corporate Bonds (18.4%):
Airline Leasing (0.9%):
7,000 General Electric Capital Corp., 5.45%,
5/12/97*........................................ $ 6,992
--------
Banking (5.2%):
10,000 Comerica Bank, 5.46%, 6/6/97*................... 10,000
3,000 First Fidelity Bank, 6.04%, 8/2/96*............. 3,000
7,000 Huntington National Bank, 5.53%, 11/13/96*...... 7,000
1,500 Marshall & Ilsley Bank - Madison, Wi, 5.37%,
9/9/96*......................................... 1,500
2,000 Marshall & Ilsley Bank - Neillsville, Wi,
5.38%, 7/5/96*.................................. 2,000
5,000 Marshall & Ilsley Bank - Watertown, 5.37%,
10/30/96*....................................... 5,000
10,000 PNC Bank, NA, 5.34%, 3/31/97*................... 9,994
--------
38,494
--------
Chemicals (0.3%):
2,000 Dupont Corp., 8.45%, 10/15/96................... 2,017
--------
Financial & Insurance (4.0%):
10,000 Dean Witter Discover, 5.82%, 2/3/97*............ 10,015
5,000 Smith Barney, 6.00%, 3/15/97.................... 5,005
10,000 SMM Trust 1996, 5.57%, 3/26/97*................. 10,000
5,000 SMM Trust 1996, 5.54%, 5/29/97*................. 5,000
--------
30,020
--------
Financial Services (6.6%):
7,000 Bear Stearns Co. Inc., 5.36%, 2/6/97*........... 7,000
5,000 Bear Stearns Co. Inc., 5.38%, 6/10/97*.......... 5,000
1,000 Dean Witter Discover, 5.66%, 2/24/97*........... 1,001
1,300 General Electric Capital, 5.87%, 8/23/96*....... 1,300
35,000 Morgan Stanley, 5.75%, 12/31/99*................ 34,999
--------
49,300
--------
Insurance (1.4%):
10,000 All State Funding, 5.59%, 12/1/96*.............. 10,000
--------
Total Corporate Bonds 136,823
Medium Term Notes (1.4%):
Banking (1.4%):
10,000 Abbey National, 5.08%, 2/27/97.................. 9,999
--------
Total Medium Term Notes............................................... 9,999
--------
U.S. Government Agencies (2.0%):
Federal Farm Credit Bank:
10,000 5.50%, 6/19/97*................................. 10,000
Student Loan Marketing Assoc.:
5,000 5.45%, 12/20/96*................................ 5,000
--------
Total U.S. Government Agencies........................................ 15,000
--------
Total Investments..................................................... 663,240
--------
Continued
</TABLE>
49
<PAGE>
================================================================================
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ---------------------------------------------------- ------------
<C> <S> <C>
Repurchase Agreements (11.0%):
38,057 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 40,491 Federal National
Mortgage Assoc., 7.50%, 4/1/26, market
value--$38,818).................................... $ 38,057
19,000 Nomura Securities, 5.53%, 7/1/96
(collateralized by 18,960 various U.S.
Government Securities, 0.00% - 8.95%,
9/10/96 - 2/15/26, market value - $19,384)......... 19,000
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ---------------- ---------------------------------------------------- ------------
<C> <S> <C>
Repurchase Agreements, continued:
25,000 Paine Webber, 5.52%, 7/1/96 (collateralized
by 28,473 various U.S. Government
Securites, 0.00% - 10.00%, 11/25/96 -
9/15/34, market value - $25,502)................... $ 25,000
--------
Total Repurchase Agreements 82,057
--------
Total (Cost-- $745,297)(a) $745,297
========
</TABLE>
- ----------------
Percentages indicated are based on net assets of $743,553.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. 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 at June 30, 1996.
** Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Securities Act of 1933.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
50
<PAGE>
===============================================================================
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
U.S. Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- --------- -------------------------------------------- --------------
<S> <C> <C>
U.S. Government Agencies (58.8%):
Federal Farm Credit Bank:
10,000 5.50%, 6/13/97*............................. $ 9,999
Federal Home Loan Bank:
5,000 5.21%, 7/10/96............................. 4,993
10,000 5.00%, 7/11/96............................. 9,986
5,000 5.00%, 7/18/96............................. 4,988
10,000 4.80%, 7/23/96............................. 9,971
5,000 5.20%, 8/14/96............................. 4,968
5,000 5.34%, 9/11/96............................. 4,947
5,000 5.16%, 10/17/96............................ 4,923
5,000 5.19%, 10/29/96............................ 4,914
5,000 5.24%, 11/6/96............................. 4,907
5,000 5.25%, 11/12/96............................ 4,902
5,000 5.26%, 12/3/96............................. 4,887
5,000 5.00%, 12/12/96............................ 4,877
5,000 5.16%, 12/23/96............................ 4,875
5,000 5.22%, 1/8/97.............................. 4,862
5,000 5.33%, 2/3/97.............................. 4,839
5,000 5.33%. 2/4/97.............................. 4,839
10,000 5.27%, 2/28/97............................. 9,999
Federal Home Loan Mortgage Corp.:
5,000 5.25%, 7/15/96............................. 4,990
10,000 5.29%, 7/31/96............................. 9,956
5,000 5.25%, 9/3/96.............................. 4,953
Federal National Mortgage Assoc.:
10,000 4.96%, 7/5/96.............................. 9,994
2,000 5.44%, 7/5/96.............................. 2,000
10,000 5.09%, 7/9/96.............................. 9,989
5,000 5.20%, 7/10/96............................. 4,994
5,000 5.26%, 7/12/96............................. 4,992
10,000 5.25%, 7/15/96............................. 9,980
5,000 5.15%, 7/30/96............................. 4,979
5,000 5.21%, 8/8/96.............................. 4,973
5,000 5.23%, 8/15/96............................. 4,967
5,000 4.90%, 9/5/96.............................. 4,955
5,000 5.31%, 9/6/96.............................. 4,951
U.S. Government Agencies, continued
Federal National Mortgage Assoc., continued:
5,000 5.17%, 9/12/96............................. $4,948
5,000 5.16%, 9/20/96............................. 4,942
5,000 5.33%, 9/24/96............................. 4,937
5,000 5.17%, 10/9/96............................. 4,928
5,000 5.27%, 10/10/96............................ 4,926
5,000 5.22%, 11/7/96............................. 4,906
Student Loan Marketing Assoc.:
7,000 5.39%, 9/23/96............................. 6,997
---------
Total U.S. Government Agencies 231,933
---------
Total Investments 231,933
---------
</TABLE>
Repurchase Agreements (41.5%):
78,632 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 80,109 Federal National
Mortgage Assoc., securities 8.00%, 6/1/26,
market value--$80,205)........................... 78,632
20,000 Lehman Brothers, 5.52%, 7/1/96
(Collateralized by 20,326 various U.S.
Treasury Notes, 5.62-5.75%, 10/31/97,
market value--$20,403)............................ 20,000
20,000 Nomura Securities, 5.53%, 7/1/96
(Collateralized by 19,876 various U.S.
Government and Treasury securities,
0.00%-14.00%, 9/6/96-5/20/24, market
value--$20,405)................................... 20,000
20,000 Paine Webber, 5.31%, 7/8/96 (Collateralized
by 46,672 various U.S. Government
securities, 0.00%-7.00%, 6/15/97-7/15/22,
market value--$20,401)............................ 20,000
25,000 Paine Webber, 5.52%, 12/31/99
(Collateralized by 25,656 various U.S.
Government securities, 0.00%-9.55%,
7/10/96-1/19/23, market value--$25,501)........... 25,000
--------
Total Repurchase Agreements 163,632
--------
Total (Cost-- $395,565)(a) $395,565
========
- ------------
Percentages indicated are based on net assets of $394,395.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. 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 at June 30, 1996.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
51
<PAGE>
===============================================================================
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Treasury Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- --------------- -------------------------------------------- ---------------
<S> <C> <C>
U. S. Treasury Bills (23.5%):
5,000 8/8/96................................... $ 4,975
5,000 8/22/96................................... 4,963
10,000 8/29/96................................... 9,920
12,000 10/3/96................................... 11,841
12,000 10/31/96................................... 11,794
12,000 11/29/96................................... 11,738
6,000 1/9/97................................... 5,834
10,000 2/6/97................................... 9,695
8,000 3/6/97................................... 7,714
8,000 4/3/97................................... 7,680
4,000 5/1/97................................... 3,822
--------
Total U.S. Treasury Bills 89,976
--------
</TABLE>
U.S. Treasury Strips (2.6%):
10,000 U.S. Treasury Strips, 11/15/96.................. 9,803
--------
Total U.S. Treasury Strips 9,803
--------
Total Investments 99,779
--------
Repurchase Agreements (74.2%):
95,252 Aubrey Lanston, 5.42%, 7/1/96
(Collateralized by 113,029 various U.S.
Government securities, 0.00%-9.13%,
7/25/96-2/15/25, market value--$97,159)......... 95,252
Repurchase Agreements, continued
19,100 Citicorp Securities, 5.40%, 7/1/96
(Collateralized by 19,370 U.S. Treasury
Notes, 6.38%, 5/15/99, market value--
$19,567)......................................... $19,100
16,500 Goldman Sachs, 5.30%, 7/1/96
(Collateralized by 16,873 various U.S.
Government securities, 0.00%-6.13%,
6/29/98-9/30/00, market value--$16,830).......... 16,500
19,100 HSBC Party, 5.38%, 7/1/96 (Collateralized by
19,096 U.S. Treasury Notes, 5.00%-8.88%,
10/31/97-1/31/98, market value--$19,484)......... 19,100
95,500 JP Morgan, 5.40%, 7/1/96 (Collateralized by
85,449 U.S. Treasury Bonds, 8.13%,
8/15/19, market value--$100,017)................. 95,500
19,100 Lehman Brothers, 5.52%, 7/1/96
(Collateralized by 19,375 U.S. Treasury
Notes, 5.75%, 10/31/97, market value--
$19,481)......................................... 19,100
19,100 Morgan Stanley, 5.35%, 7/1/96
(Collateralized by 12,961 various U.S.
Government securities, 6.50%-13.88%,
5/15/97-5/15/11, market value--$19,496).......... 91,100
----------
Total Repurchase Agreements 283,652
----------
Total (Cost-- $383,431)(a) $383,431
==========
- ------------------
Percentages indicated are based on net assets of $382,139.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
52
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Tax-Free Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- -------------------------------------------------------------------------------------------- ---------
Municipal Bonds, Notes, & Commercial Paper (100.7%):
Alabama (4.9%):
<C> <S> <C>
7,300 Birmingham, Medical Clinic Board, 3.80%*, 12/1/26**.......................................... $ 7,299
---------
Colorado (3.0%):
4,500 Platte River, 3.70%, 8/19/96................................................................. 4,500
---------
Connecticut (1.0%):
1,500 Connecticut St. Special Assessment Unemployment, 3.90%, 11/15/01**........................... 1,500
---------
Delaware (6.7%):
3,500 Economic Development Authority, Delmarva Power & Light Project, 3.80%*,
10/1/17**.................................................................................... 3,500
400 Economic Development Authority, Delmarva Power & Light Project, 3.80%*,
10/1/29**.................................................................................... 400
3,400 Economic Development Authority, Delmarva Power & Light Project Series A,
3.80%*, 10/1/17**............................................................................ 3,400
2,600 Economic Development Authority, Hospital Revenue Bond Series B, 3.50%*,
12/1/15**.................................................................................... 2,600
---------
9,900
---------
Georgia (5.8%):
5,000 Cobb County, 4.00%, 12/31/96................................................................. 5,012
3,500 Muni Gas of Georgia, 3.65%, 9/11/96.......................................................... 3,500
---------
8,512
---------
Hawaii (0.7%):
1,000 Hawaii State, Series Bf, 6.90%, 8/1/97**..................................................... 1,018
---------
Illinois (1.7%):
1,460 Health Facilities, Authority Revenue, 3.40%*, 5/15/19**...................................... 1,460
1,000 Health Facility, Authority Revenue, Evanston Hospital, 4.30%, 1/1/26**....................... 1,000
---------
2,460
---------
Indiana (5.5%):
5,700 Indianapolis Industrial Resource Recovery, 3.80%*, 12/1/16**................................. 5,700
2,500 Jasper, 3.50%, 11/1/16**..................................................................... 2,500
---------
8,200
---------
Kansas (6.7%):
2,400 Burlington, 3.70%, 10/1/17**................................................................. 2,400
1,300 Burlington, 3.70%, 10/7/17**................................................................. 1,300
3,150 Burlington Polution Control, Series A, 3.55%, 10/1/17**...................................... 3,150
3,000 State of Kansas, Series 94B, 3.30%*, 9/1/14**................................................ 3,000
---------
9,850
---------
Kentucky (5.3%):
2,200 Jefferson County, 3.55%, 9/1/17**............................................................ 2,200
1,350 Jefferson County, 3.70%, 9/1/17**............................................................ 1,350
4,300 Lexington-Fayette Urban County Airport, 3.95%*, 4/1/24**..................................... 4,300
---------
7,850
---------
Lousiana (1.6%):
1,300 De Soto Parish, Pollution Control, Central Louisana Electric Co., Series A,
3.25%*, 7/1/18**............................................................................. 1,300
1,000 Louisiana, Recovery District, Sales Tax, 3.65%*, 7/1/97**.................................... 1,000
---------
2,300
---------
Maryland (8.1%):
5,000 Baltimore County, 3.40%, 5/9/00**............................................................ 5,000
2,000 Montgomery County, 3.45%, 11/2/98**.......................................................... 2,000
5,000 Montgomery County, 3.65%, 11/2/98**.......................................................... 5,000
---------
12,000
---------
</TABLE>
Continued
53
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Tax-Free Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- -------------------------------------------------------------------------------------------- ---------
Municipal Bonds, Notes, & Commercial Paper, continued:
Michigan (11.5%):
<C> <S> <C>
1,000 Delta County Economic Development Corp., 3.65%*, 12/1/23**................................... $ 1,000
200 Delta County, Economic Development Corp., Environmental Improvement Revenue Bonds, (Mead
Escanaba Paper), Series D, 3.60%*, 12/1/23**................................................ 200
1,400 Delta County, Economic Development Corp., Environmental Improvement Revenue Bonds, (Mead
Escanaba Paper), Series E, 3.60%*, 12/1/23**................................................ 1,400
1,800 Delta County, Economic Development Corp., Environmental Improvement Revenue Bonds, (Mead
Escanaba Paper), Series F, LOC: Bank of Nova Scotia, 3.60%*, 12/1/13**...................... 1,800
3,900 Housing Development Authority, 3.40%*, 10/1/07**............................................. 3,900
100 Michigan Strategic, 3.60%*, 9/1/30**......................................................... 100
200 Monroe County, Economic Development Corp., 3.60%*, 10/1/24**................................. 200
500 South Central Power Agency, 7.25%, 11/1/06**................................................. 516
1,695 State Building Authority, 7.88%, 12/1/04**................................................... 1,748
905 Sterling Heights Shopping Center, 3.50%*, 12/1/10**.......................................... 905
2,080 University Of Michigan, Hospital Revenue Bond, Series A, 3.55%*, 12/1/19**................... 2,080
3,200 University Of Michigan, Hospital Revenue Bond, Series A, 3.55%*, 12/1/27**................... 3,200
---------
17,049
---------
Minnesota (6.8%):
5,500 Minneapolis, 6.50%*, 3/1/13**................................................................ 5,646
1,500 Minnesota State GO, 6.40%, 8/1/96............................................................ 1,504
2,950 Rochester, 3.60%*, 11/15/17**................................................................ 2,950
---------
10,100
---------
New Jersey (2.4%):
3,550 New Jersey State GO, 7.30%*, 11/1/96......................................................... 3,600
---------
Pennsylvania (6.1%):
2,500 Allegheny County, 3.75%*, 9/1/11**........................................................... 2,500
3,000 Bristol Township GO, 7.88%*, 9/1/16**........................................................ 3,021
1,000 College Township Industrial Development, 3.40%, 11/1/11**.................................... 1,000
2,500 Montgomery County, 3.45%*, 6/1/29**.......................................................... 2,500
---------
9,021
---------
South Carolina (1.9%):
2,700 Charleston County GO, 6.20%, 2/1/97.......................................................... 2,738
---------
Texas (10.6%):
1,400 Houston, 3.75%, 8/5/96....................................................................... 1,400
5,900 Harris County Health Facilities, Methodist Hospital, 3.70%, 12/1/25**........................ 5,900
1,300 Harris County Health Facility, St. Lukes Episcopal, Series C, 3.70%,
2/15/16**................................................................................... 1,300
2,000 San Antonio, Series A, 3.45%, 7/18/96........................................................ 2,000
5,000 Texas State Tax & Revenue Anticipation Notes, Series B, 4.75%, 8/30/96....................... 5,006
---------
15,606
---------
Utah (0.9%):
1,300 Salt Lake County Pollution Control, Service Station Holding Project, Series
B, 3.70%*, 8/1/07**......................................................................... 1,300
---------
Virginia (1.2%):
1,800 Alexandria Industrial Development Authority, 3.80%*, 12/1/16**............................... 1,800
---------
Washington (2.1%):
1,000 Seattle, 7.30%, 10/1/06**.................................................................... 1,020
2,000 Washington State; Series 86D, GO, 7.50%, 9/1/98.............................................. 2,014
---------
3,034
---------
</TABLE>
Continued
54
<PAGE>
<TABLE>
<CAPTION>
Schedule of Portfolio Investments, continued
- -----------------------------------------------------------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Tax-Free Fund
(Amounts in Thousands)
Shares or
Principal Security Amortized
Amount Description Cost
- --------- -------------------------------------------------------------------------------------------- ---------
Municipal Bonds, Notes, & Commercial Paper, continued:
Wisconsin (3.8%):
<C> <S> <C>
2,100 Carlton Pollution Control Revenue, Wisconsin Power and Light Co., Project
B, 3.70%*, 9/1/05**........................................................................ $ 2,100
700 Carlton Power & Light, 3.70%*, 10/1/00**.................................................... 700
875 Carlton Power & Light, 3.70%*, 10/1/00**.................................................... 875
2,000 Wisconsin State, 4.50%, 6/16/97............................................................. 2,012
--------
5,687
--------
Wyoming (2.4%):
600 Converse County Pollution Control Revenue, PacifiCorp Projects, 3.70%*,
11/1/24**.................................................................................. 600
1,500 Lincoln County Pollution Control, 3.70%*, 11/1/24**......................................... 1,500
1,400 Sweetwater County Pollution Control, PacifiCorp Projects, 3.70%*, 11/1/24**................. 1,400
--------
3,500
--------
Total Municipal Bonds, Notes, & Commercial Paper 148,824
--------
Investment Companies (1.2%):
533 Muni Cash Mutual Fund....................................................................... 533
1,249 Pimco Muni Fund............................................................................. 1,249
--------
Total Investment Companies 1,782
--------
Total (Cost--$150,606) (a) $150,606
========
</TABLE>
- -------------------------
Percentages indicated are based on net assets of $147,867.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on June 30, 1996.
** Put and demand features exist allowing the Fund to require the repurchase
of the investment within variable time periods of less than one year.
(a) Cost for federal income tax and financial reporting purposes are the same.
GO--General Obligation.
LOC--Letter of Credit.
See notes to financial statements.
55
<PAGE>
================================================================================
Schedule of Portfolio Investments,
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
High Income Equity Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ---------- ----------------------------- -------
<S> <C> <C>
Common Stocks (67.8%):
Banking (5.2%):
158,300 First Tennessee National Corp... $ 4,848
469,575 MBNA Corp....................... 13,383
142,200 PNC Financial Corp.............. 4,230
-------
22,461
-------
Electrical Equipment (3.1%):
147,500 Emerson Electric................ 13,330
-------
Food Products & Services (6.5%):
440,600 Flowers Industries, Inc......... 7,105
351,450 H. J. Heinz Co.................. 10,675
211,200 The Coca Cola Co................ 10,322
-------
28,102
-------
Forest & Paper Products (2.0%):
110,700 Kimberly Clark Corp............. 8,552
-------
Health Care (5.0%):
104,300 Bristol Myers Squibb Co......... 9,387
249,600 Johnson & Johnson............... 12,355
-------
21,742
-------
Hospital Supply & Management (1.6%):
127,200 U.S. Healthcare, Inc............ 6,996
-------
Industrial Goods & Services (2.6%):
96,050 United Technologies Corp........ 11,046
-------
Insurance (1.1%):
105,033 Allstate Corp................... 4,792
-------
Machinery & Equipment (1.6%):
148,000 Snap-on, Inc.................... 7,012
-------
Manufacturing--Consumer Goods (1.9%):
185,800 Duracell International, Inc..... 8,013
-------
Office Equipment & Services (3.0%):
243,150 Xerox Corp...................... 13,009
-------
Oil & Gas Exploration Products
& Services (9.7%):
72,800 Atlantic Richfield Co........... 8,627
94,950 Mobil Corp...................... 10,646
272,100 Occidental Petroleums Corp...... 6,734
136,050 Questar Corp.................... 4,626
73,750 Royal Dutch Petroleum Co........ 11,339
-------
41,972
-------
Pharmaceuticals (5.7%):
182,500 American Home Products Corp..... 10,973
210,200 Eli Lilly & Co.................. 13,663
-------
24,636
-------
Retail Stores & Catalog (5.9%):
362,900 Intimate Brands, Inc............ 8,301
108,050 May Department Stores Co........ 4,727
258,550 Sears Roebuck................... 12,572
-------
25,600
-------
Technology (0.4%):
64,000 General Instrument Corp.(b)..... $1,848
-------
Telecommunications (2.0%):
285,500 Frontier Corp................... 8,743
-------
Tobacco (2.6%):
324,800 U.S.T. Inc...................... 11,124
-------
Utilities--Electric (6.9%):
152,000 Central & South West Corp....... 4,408
204,450 Duke Power Co................... 10,478
223,200 Florida Power & Light, Inc...... 10,267
127,000 General Public Utility Corp..... 4,477
-------
29,630
-------
Utilities--Water (1.0%):
111,700 American Water Works, Inc...... 4,496
-------
Total Common Stocks 293,104
-------
Convertible Bonds (17.2%):
Business Services (2.7%):
103,050 American Express, Debit
Exchangeable for Common Stock,
6.25%, 10/15/96................ 6,763
-------
2,605,000 First Financial Management
Corp., 5.00%, 12/15/99......... 4,911
-------
11,674
Consumer Goods & Services (2.1%):
8,585,000 Gillette Corp., 2.50%, 3/1/03... 9,004
-------
Electrical & Electronic (0.4%):
2,040,000 VLSI Technology, 8.25%, 10/1/05,
Callable 10/3/97 @ 103.3....... 1,793
-------
Health Care (4.2%):
6,040,000 HEALTHSOUTH Rehabilitation
Corp., 5.00%, 4/1/01........... 11,521
5,610,000 Phycor, Inc., 4.50%, 2/15/03.... 6,466
-------
17,987
-------
Hotels & Lodging (1.7%):
6,325,000 HFS Inc., 4.75%, 3/1/03,
Callable 3/4/00 @ 102.04....... 7,582
-------
Insurance (0.9%):
101,500 Allstate Corp., 6.76%, 4/15/98.. 4,009
-------
Printing & Publishing (0.8%):
2,965,000 Scholastic Corp., 5.00%, 8/15/05 3,439
-------
Retail Stores (2.8%):
5,095,000 Lowe's Companies, 3.00%, 7/22/03,
Callable 7/22/96 @ 91.078...... 7,133
4,380,000 Men's Wearhouse, 5.25%, 3/1/03.. 4,796
-------
11,929
-------
Technology (1.6%):
4,280,000 Analog Devices Corp.,
3.50%, 12/1/00................. 5,061
</TABLE>
Continued
[56]
<PAGE>
================================================================================
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
High Income Equity Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ---------- ----------------------------- -------
<S> <C> <C>
Convertible Bonds, continued:
Technology, continued:
1,485,000 General Instrument, 5.00%,
6/15/00........................ 1,799
-------
6,860
-------
Total Convertible Bonds 74,277
-------
Preferred Stocks (11.6%):
Banking (1.8%):
80,100 First Bank System............... 7,930
-------
Financial Services (4.5%):
248,350 First U.S.A..................... 11,859
100,800 Sunamerica Inc.................. 7,535
-------
19,394
-------
Industrial Goods & Services (2.0%):
107,600 Alco Standard................... 8,931
-------
Oil & Gas Industry (1.2%):
199,000 Enron Oil & Gas Corp............ 5,149
-------
Paper Products (1.0%):
128,450 Bowater, Inc., Series B......... 4,175
-------
Printing & Publishing (1.1%):
45,300 Houghton Mifflin, Series 8/1/99. 4,620
-------
Total Preferred Stocks 50,199
-------
Private Placement (0.9%):
Financial Services (0.9%):
4,350,000 Solectron Corp., Convertible
Bond, 6.00%, 3/1/06............ 3,915
-------
Total Private Placement 3,915
-------
Total Investments, at value 421,495
-------
Repurchase Agreements (2.2%):
9,520,000 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 9,878
Federal National Mortgage
Assoc., 7.50%, 6/1/26, market
value--$9,710)................. 9,520
-------
Total Repurchase Agreements 9,520
-------
Total (Cost-- $335,502)(a) $431,015
-------
</TABLE>
- -------------
Percentages indicated are based on net assets of $432,468.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securitites as follows:
Unrealized appreciation................... $97,456
Unrealized depreciation................... (1,943)
------
Net unrealized appreciation............... $95,513
------
(b) Represents non-income producing securities.
See notes to financial statements.
[57]
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Large Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ----------------------------------------------------- ------
<S> <C> <C>
Common Stocks (86.4%):
Agriculture (1.4%):
52,800 CPC Industries...................................... $ 3,802
---------
Broadcasting & Publishing (1.8%):
121,800 British Sky Broadcasting ADR(b)....................... 4,948
---------
Business Services (1.7%):
89,600 Electronic Data Systems(b)............................ 4,816
---------
Computer Hardware (4.4%):
46,500 3Com Corp.(b)......................................... 2,127
101,100 Cisco Systems, Inc.(b)................................ 5,725
43,100 Hewlett Packard Co.................................... 4,294
---------
12,146
---------
Computer Software (8.7%):
53,500 Computer Associates International, Inc................ 3,812
95,300 First Data Corp....................................... 7,587
38,300 Microsoft(b).......................................... 4,601
204,350 Oracle Corp.(b)....................................... 8,058
---------
24,058
---------
Consumer Goods & Services (6.8%):
99,400 CUC International, Inc.(b)............................ 3,529
83,000 Gillette Co........................................... 5,177
48,700 Nike, Inc............................................. 5,004
54,400 Procter & Gamble Co................................... 4,930
---------
18,640
---------
Electrical & Electronic (5.6%):
76,100 AMP, Inc.............................................. 3,054
40,300 Applied Materials(b).................................. 1,229
56,300 Duracell International, Inc........................... 2,428
55,600 Emerson Electric...................................... 5,025
42,800 General Electric Co................................... 3,702
---------
15,438
---------
Entertainment (2.1%):
103,500 Carnival Cruise Lines................................. 2,989
75,000 Viacom, Inc.-Class B(b)............................... 2,916
---------
5,905
---------
Financial Services (7.9%):
81,600 American Express Co................................... 3,641
96,300 Associates First Capital(b)........................... 3,623
229,900 Federal National Mortgage Assoc....................... 7,701
41,500 Household International............................... 3,154
128,000 MBNA Corp............................................. 3,648
---------
21,767
---------
Food & Beverage (5.5%):
106,200 Mc Donald's Corp...................................... 4,965
142,100 PepsiCo, Inc.......................................... 5,027
105,100 The Coca Cola Co...................................... 5,137
---------
15,129
---------
Forest & Paper Products (2.3%):
83,800 Kimberly Clark Corp................................... 6,473
---------
Health Care (5.4%):
113,300 Abbott Laboratories................................... 4,929
95,800 Columbia/HCA Healthcare Corp.......................... 5,113
36,500 Hospitality Franchise Systems(b)...................... 2,555
44,700 U.S. Healthcare, Inc.................................. 2,459
---------
15,056
---------
Industrial Goods & Services (3.5%):
72,500 Alco Standard Corp.................................... 3,281
55,000 United Technologies Corp.............................. 6,325
---------
9,606
---------
Insurance (3.8%):
64,400 American International Group, Inc..................... 6,351
44,800 March & McLennan...................................... 4,323
---------
10,674
---------
Medical Equipment & Supplies (2.8%):
78,000 Boston Scientific Corp.(b)............................ 3,510
74,700 Medtronic, Inc........................................ 4,183
---------
7,693
---------
Office Equipment & Services (3.6%):
51,700 Reuters Holding, ADR(b)............................... 3,748
117,400 Xerox Corp............................................ 6,281
---------
10,029
---------
Pharmaceuticals (8.7%):
58,500 Eli Lilly & Co........................................ 3,803
114,500 Johnson & Johnson..................................... 5,668
95,600 Merck & Co., Inc...................................... 6,178
73,800 Pfizer, Inc........................................... 5,267
50,900 Schering Plough Corp.................................. 3,194
---------
24,110
---------
Retail Stores (4.2%):
81,900 Home Depot, Inc....................................... 4,423
76,700 Intimate Brands, Inc.................................. 1,755
111,600 Sears Roebuck......................................... 5,427
---------
11,605
---------
Technology (2.6%):
66,700 Automatic Data Processing, Inc........................ 2,576
46,100 Intel Corp............................................ 3,385
17,400 Motorola, Inc......................................... 1,094
---------
7,055
---------
Telecommunications (2.2%):
125,800 AirTouch Communications, Inc.(b)...................... 3,554
47,000 Worldcom, Inc.(b)..................................... 2,603
---------
6,157
---------
</TABLE>
Continued
58
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Large Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ----------------------------------------------------- ------
<S> <C> <C>
Common Stocks, continued:
Wholesale Distribution (1.4%):
110,600 Sysco Corp............................................... $ 3,788
--------
Total Common Stocks 238,895
--------
Total Investments, at value 238,895
--------
Repurchase Agreements (13.6%):
37,566,000 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 39,969 Federal National
Mortgage Assoc., 7.50%, 4/1/26, market
value--$38,317) $ 37,566
---------
Total Repurchase Agreements 37,566
---------
Total (Cost-- $265,874)(a) $ 276,461
=========
</TABLE>
- --------------
Percentages indicated are based on net assets of $276,641.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securitites as follows:
<TABLE>
<S> <C>
Unrealized appreciation ....................................... $15,573
Unrealized depreciation ....................................... (4,986)
-------
Net unrealized appreciation ................................... $10,587
=======
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt.
See notes to financial statements.
59
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Equity Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- --------------------------------------- ------
Common Stocks (98.3%):
Banking (1.7%):
<C> <S> <C>
318,375 MBNA Corp................................. $ 9,074
97,300 Saks Holdings, Inc.(b).................... 3,320
-------
12,394
-------
Broadcasting & Publishing (2.3%):
420,900 British Sky Broadcasting-ADR(b)........... 17,099
-------
Business Services (5.9%):
402,450 Ceridian Corp.(b)......................... 20,324
172,200 Cintas Corp............................... 9,213
281,050 Paychex................................... 13,525
-------
43,062
-------
Commercial Services (0.8%):
179,250 Stewart Enterprises....................... 5,602
-------
Computer Hardware (3.6%):
221,800 3COM Corp.(b)............................. 10,147
460,200 Fore Systems, Inc.(b)..................... 16,625
-------
26,772
-------
Computer Software (12.6%):
37,600 Atria Software(b)......................... 1,880
292,000 Baan Co. NV(b)............................ 9,928
615,500 GT Interactive Software Corp.(b).......... 10,310
252,600 Informix Corp.(b)......................... 5,683
193,800 Macromedia, Inc.(b)....................... 4,239
294,250 McAfee Associates, Inc.(b)................ 14,418
234,925 Oracle Corp.(b)........................... 9,265
442,800 Parametric Technology Corp.(b)............ 19,206
250,700 PeopleSoft, Inc.(b)....................... 17,862
-------
92,791
-------
Computers (0.5%):
104,000 FileNet Corp.(b).......................... 3,796
-------
Consumer Goods & Services (3.3%):
472,550 CUC International, Inc.(b)................ 16,776
145,700 Nine West Group, Inc.(b).................. 7,449
-------
24,225
-------
Correctional Facilities (0.5%):
54,200 Corrections Corp. Of America(b)........... 3,794
-------
Data Processing & Reproduction (2.1%):
313,500 Fiserv, Inc.(b)........................... 9,405
116,100 Reynolds & Reynolds....................... 6,182
-------
15,587
-------
Electrical & Electronic (1.0%):
250,983 Molex, Inc................................ 7,373
-------
Entertainment (3.4%):
345,300 Carnival Cruise Lines..................... 9,971
141,700 Circus Circus Entertainment(b)............ 5,810
175,650 Mirage Resorts(b)......................... 9,485
-------
25,266
-------
</TABLE>
Continued
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- --------------------------------------- ------
Common Stocks, continued:
Financial Services (8.0%):
<C> <S> <C>
180,900 Concord EFS, Inc.(b).................... $ 6,422
199,600 Finova Group, Inc....................... 9,731
224,650 First USA, Inc.......................... 12,356
454,800 Green Tree Financial Corp............... 14,213
351,450 Money Store............................. 7,776
232,200 United Companies Financial Corp......... 7,895
-------
58,393
-------
Funeral Services (2.7%):
341,800 Service Corp. International............. 19,653
-------
Health Care (5.3%):
716,625 Health Management Associates(b)......... 14,512
507,950 HEALTHSOUTH Corp.(b).................... 18,286
263,200 MedPartners/Mullikin, Inc.(b)........... 5,494
-------
38,292
-------
Hotels & Lodging (5.8%):
506,500 Hospitality Franchise Systems(b)........ 35,454
145,100 Sun International Hotel(b).............. 7,037
-------
42,491
-------
Industrial Goods & Equipment (1.7%):
282,600 Alco Standard Corp...................... 12,788
-------
Insurance (3.0%):
216,000 American Re Corp........................ 9,693
212,700 Sunamerica, Inc......................... 12,018
-------
21,711
-------
Manufacturing-Consumer Goods (2.0%):
468,900 Newell Co............................... 14,360
-------
Medical Equipment & Supplies (2.3%):
144,100 Elan Corp. PLC, ADR(b).................. 8,232
221,300 IDEXX Laboratories, Inc.(b)............. 8,686
-------
16,918
-------
Medical--Biotechnology (0.8%):
154,200 Arterial Vascular Engineering, Inc.(b).. 5,590
-------
Medical--Hospital Management & Services (3.3%):
568,200 Omnicare, Inc........................... 15,057
246,550 Phycor, Inc.(b)......................... 9,369
-------
24,426
-------
Office Equipment & Services (2.4%):
240,800 Danka Business Systems, ADR............. 7,043
261,600 Sungard Data Systems, Inc.(b)........... 10,497
-------
17,540
-------
Pharmaceuticals (1.0%):
200,250 Watson Pharmaceutical, Inc.(b).......... 7,584
-------
Restaurants (1.3%):
245,950 Lone Star Steakhouse & Saloon(b)........ 9,285
-------
</TABLE>
60
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Equity Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description(a) Value
- --------- --------------------------------------- ------
Common Stocks, continued:
Retail Stores (1.9%):
<C> <S> <C>
443,800 Viking Office Products(b)............... $ 13,924
--------
Retail Stores/Catalog (6.7%):
294,000 Autozone, Inc.(b)....................... 10,217
234,200 Consolidated Stores(b).................. 8,607
310,500 Intimate Brands, Inc.................... 7,103
339,850 Petsmart, Inc.(b)....................... 16,228
283,700 Sunglass Hut International, Inc.(b)..... 6,915
--------
49,070
--------
Technology (1.0%):
118,750 Linear Technology Corp.................. 3,563
139,000 LSI Logic Corp.(b)...................... 3,614
--------
7,177
--------
Technology-Software (1.7%):
164,300 Computer Sciences(b).................... 12,281
--------
Telecommunications (6.7%):
217,800 Canwest Global Communications Corp.(b).. 5,935
185,000 Clear Channel Communications, Inc.(b)... 15,239
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description(a) Value
- --------- --------------------------------------- ------
Common Stocks, continued:
Telecommunications, continued:
<C> <S> <C>
416,200 LCI International, Inc.(b).............. $ 13,058
210,800 Orange PLC, ADR(b)...................... 3,689
171,850 Tellabs, Inc.(b)........................ 11,492
--------
49,413
--------
Wholesale (0.9%):
165,800 U.S. Office Products Co.(b)............. 6,964
--------
Wholesale Distribution - Pharmaceuticals (2.1%):
213,050 Cardinal Health, Inc.(b)................ 15,366
--------
Total Common Stocks...................................... 720,987
--------
Total Investments, at value.............................. 720,987
--------
Repurchase Agreements (1.0%):
7,686,000 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 7,975 Federal
National Mortgage Assoc., 7.50%,
6/1/26, market value--$7,840).......... 7,686
--------
Total Repurchase Agreements.............................. 7,686
--------
Total (Cost--$490,156)(a)................................ $728,673
========
</TABLE>
- --------------
Percentages indicated are based on net assets of $733,683.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securitites as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................$251,756
Unrealized depreciation................. (13,239)
--------
Net unrealized appreciation.............$238,517
========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt.
See notes to financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Small Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------- -------
<S> <C> <C>
Common Stocks (92.3%):
Business Services (3.7%):
211,600 Alternative Resources Corp.(b)................$ 7,776
82,700 First USA Paymentech, Inc.(b)................. 3,308
105,700 Intelliquest Information Group, Inc.(b)....... 3,462
474,450 Payment Services, Inc.(b)..................... 13,581
-------
28,127
-------
Computer Hardware (1.0%):
63,100 Premenos Technology Corp.(b).................. 1,152
155,000 Veritas Software Corp.(b)..................... 6,665
-------
7,817
-------
Computer Software (12.6%):
110,400 Aspen Technologies, Inc.(b)................... 6,072
518,250 Cambridge Technology Partners, Inc.(b)........ 15,807
286,150 Dendrite International, Inc.(b)............... 9,872
239,950 INSO Corp.(b)................................. 12,567
501,937 McAfee Associates, Inc.(b).................... 24,594
211,600 Ozemail Ltd-ADR(b)............................ 2,724
146,600 Project Software & Development, Inc.(b)....... 6,872
116,950 Raptor Systems, Inc.(b)....................... 3,099
282,900 Systemsoft Corp.(b)........................... 13,296
-------
94,903
-------
Consumer Goods & Services (2.6%):
177,700 Cerion Technologies, Inc.(b).................. 1,733
96,400 DVI, Inc.(b).................................. 1,518
110,700 Registry, Inc.(b)............................. 3,238
159,200 Suburban Lodges Of America(b)................. 3,682
196,400 Urocor, Inc.(b)............................... 2,406
168,400 USA Detergents, Inc.(b)....................... 6,715
-------
19,292
-------
Correctional Facilities (1.8%):
411,600 Wackenhut Corrections Corp.(b)................ 13,737
-------
Education (1.4%):
121,200 Maxis, Inc.(b)................................ 2,394
223,900 Sylvan Learning Systems, Inc.(b).............. 8,452
-------
10,846
-------
Electrical & Electronic (2.0%):
403,750 Actel Corp.(b)................................ 7,469
287,300 Flextronics International, Ltd.(b)............ 7,542
-------
15,011
-------
Electronics (1.9%):
405,400 Checkpoint Systems, Inc.(b)................... 13,936
-------
Entertainment (2.6%):
430,350 Regal Cinemas, Inc.(b)........................ 19,689
-------
Financial Services (9.8%):
209,450 Aames Financial Corp. ........................ 7,514
218,300 Central Financial Acceptance Corp.(b)......... 3,029
592,300 Concord EFS, Inc.(b).......................... 21,027
910,800 Credit Acceptance Corp.(b).................... 19,127
150,600 First Merchants Acceptance Corp.(b)........... 2,974
400,590 Imperial Credit Industries, Inc.(b)........... 12,118
336,000 Oxford Resources Corp.- Class A(b)............ 7,812
-------
73,601
-------
Funeral Services (0.8%):
207,800 Equity Corp. International(b)................. 5,611
-------
Health Care (5.4%):
146,500 Compdent Corp.(b)............................. 6,812
163,800 HCIA, Inc.(b)................................. 10,319
320,850 Occusystems, Inc.(b).......................... 11,992
437,600 Orthodontic Centers Of America, Inc.(b)....... 11,596
-------
40,719
-------
Hotel Management & Related Services (0.9%):
212,400 Studio Plus Hotels, Inc.(b)................... 7,009
-------
Insurance (1.2%):
335,600 Amerin Corp.(b)............................... 8,977
-------
Manufacturing-Capital Goods (1.2%):
306,150 Miller Industries, Inc.(b).................... 8,764
-------
Medical Equipment & Supplies (9.5%):
237,750 Gulf South Medical Supply, Inc.(b)............ 9,272
371,000 Henry Schein, Inc.(b)......................... 14,191
202,500 Medquist Inc.(b).............................. 3,670
853,900 Omnicare, Inc................................. 22,628
429,150 Phycor, Inc.(b)............................... 16,308
206,900 Serologicals Corp.(b)......................... 5,483
-------
71,552
-------
Medical--Biotechnology (0.7%):
143,200 Arterial Vascular Engineering, Inc.(b)........ 5,191
-------
Medical--Hospital Services (3.4%):
194,000 Medcath, Inc.(b).............................. 2,328
122,200 NCS Healthcare, Inc.-Class A(b)............... 3,697
93,000 NUCO2, Inc.(b)................................ 2,860
266,400 Orthologic Corp.(b)........................... 3,397
319,400 Total Renal Care Holdings, Inc.(b)............ 13,495
-------
25,777
-------
Pharmaceuticals (5.7%):
301,800 Dura Pharmaceuticals, Inc.(b)................. 16,901
225,825 Jones Medical Industries, Inc. ............... 7,509
174,600 Parexel International Corp.(b)................ 8,424
147,700 Quintiles Transnational Corp.(b).............. 9,711
-------
42,545
-------
Publishing (0.7%):
164,100 Desktop Data, Inc.(b)......................... 5,456
-------
</TABLE>
Continued
62
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Small Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------- -------
<S> <C> <C>
Common Stocks, continued:
Restaurants (2.1%):
416,600 Landry's Seafood Restaurants(b).............. $ 10,311
204,400 Longhorn Steaks, Inc.(b)..................... 5,110
-------
15,421
-------
Retail Stores (4.3%):
137,600 CDW Computer Center, Inc.(b)................. 9,563
289,400 Renter's Choice, Inc.(b)..................... 7,380
213,800 West Marine, Inc.(b)......................... 15,287
-------
32,230
-------
Retail--Specialty Stores (7.3%):
123,600 Ha-lo Industries, Inc. (Halo)(b)............. 3,214
270,800 Iron Mountain, Inc.(b)....................... 5,687
269,700 Just For Feet, Inc.(b)....................... 14,260
343,600 Men's Warehouse, Inc.(b)..................... 11,081
279,975 Petco Animal Supplies, Inc.(b)............... 8,049
459,000 Rexall Sundown, Inc.(b)...................... 12,393
-------
54,684
-------
Technology (2.6%):
193,400 C.P. Clare Corp.(b).......................... 4,980
65,000 Electronics for Imaging, Inc.(b)............. 4,509
374,300 Sanmina Corp.(b)............................. 10,106
-------
19,595
-------
Technology-Software (1.5%):
125,600 Viasoft, Inc.(b)............................. 8,117
95,300 Visio Corp.(b)............................... 3,431
-------
11,548
-------
Telecommunications (2.1%):
259,500 LCI International, Inc.(b)................... 8,142
358,800 Transaction Network Services(b).............. 7,714
-------
15,856
-------
Telecommunications--Equipment (1.9%):
274,000 DSP Communications, Inc.(b).................. 14,077
-------
Wholesale Distribution (1.6%):
218,400 Barnett, Inc.(b)............................. 6,279
278,900 Brightpoint, Inc.(b)......................... 5,996
-------
12,275
-------
Total Common Stocks 694,246
-------
Foreign Stocks (0.7%):
Portugal (0.7%):
Medical Equipment & Supplies (0.7%):
189,300 ESC Medical Systems(b)....................... 5,348
-------
Total Foreign Stocks 5,348
-------
Options & Warrants (0.0%):
5,081 York Research Corp. Class [[B British
Brunswick]], 1/1/80(b)....................... 0
-------
Total Options & Warrants 0
-------
U.S. Government Agencies (5.3%):
Federal Home Loan Mortgage Corp.
40,000,000 0.00%, 7/1/96................................ 39,999
U.S. Government Agencies, continued:
-------
Total U.S. Government Agencies 39,999
-------
Total Investments, at value 739,593
-------
Repurchase Agreements (1.8%):
13,462,000 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 13,969 Federal National
Mortgage Assoc. securities, 7.50%, 6/1/26,
market value--$13,731)...................... 13,462
-------
Total Repurchase Agreements 13,462
-------
Total (Cost--$432,712)(a) $753,055
=======
</TABLE>
- ------------------------
Percentages indicated are based on net assets of $751,943.
(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
$8. Cost for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S>............................... <C>
Unrealized appreciation........... $331,198
Unrealized depreciation........... (10,863)
--------
Net unrealized appreciation....... $320,335
========
</TABLE>
(b) Represents non-income producing securities.
ADR--American Depository Receipt.
See notes to financial statements.
63
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------- -------
<S> <C> <C>
Common Stocks (90.8%):
Australia (2.2%):
Beverages & Tobacco (0.8%):
1,920,000 Foster's Brewing Group Ltd................... $ 3,309
-------
Building Products (0.8%):
1,200,000 Pioneer International Ltd.................... 3,495
-------
Diversified (0.6%):
362,672 Smith (Howard) Ltd.(b)....................... 2,255
-------
Total Australia 9,059
-------
Belgium (1.0%):
Retail Stores/Catalog (1.0%):
12,000 Colrayt...................................... 4,079
-------
Canada (3.4%):
Electronic Components/Instruments (1.2%):
330,000 CAE, Inc..................................... 2,743
100,000 Cinram Ltd................................... 2,167
-------
4,910
-------
Manufacturing-Consumer Goods (1.5%):
400,000 Bombardier, Inc., Class B.................... 5,990
-------
Natural Resources (0.7%):
165,000 Canadian Natural Resources Ltd.(b)........... 3,075
-------
Total Canada 13,975
-------
Denmark (1.5%):
Food Products & Services (1.5%):
121,000 Danisco A/S.................................. 6,024
-------
Finland (0.7%):
Retail Stores/Catalog (0.7%):
59,000 Stockmann AB-B FREE.......................... 3,035
-------
France (7.2%):
Consumer Goods & Services (4.0%):
71,280 BIC.......................................... 10,121
25,000 Hermes International......................... 6,604
-------
16,725
-------
Retail Stores/Catalog (3.2%):
38,822 Castorama Dubois Investisse.................. 7,647
26,350 Docks de France, SA.......................... 5,579
-------
13,226
-------
Total France 29,951
-------
Germany (5.4%):
Engineering (1.2%):
14,475 Mannesmann AG................................ 4,983
-------
Machinery & Equipment (1.4%):
9,000 Linde AG..................................... 5,833
-------
Manufacturing-Consumer Goods (1.5%):
75,000 Adidas AG.................................... 6,245
-------
Pharmaceuticals (1.3%):
75,000 Schering AG.................................. 5,437
-------
Total Germany 22,498
-------
Hong Kong (2.6%):
Electrical & Electronic (0.4%):
750,000 Johnson Electric Holdings Ltd................ 1,686
-------
Gas & Electric Utility (0.8%):
2,160,000 Hong Kong & China Gas Co. Ltd................ 3,446
-------
Real Estate (0.7%):
280,000 Sun Hung Kai Properties Ltd.................. 2,831
-------
Retail Stores/Catalog (0.7%):
2,750,000 Giordano International Ltd................... 2,665
-------
Total Hong Kong 10,628
-------
Indonesia (0.4%):
Tobacco (0.4%):
134,000 PT Hanjaya Mandala Sampoerna(b).............. 1,526
-------
Japan (26.0%):
Chemicals (1.5%):
173,000 Kurita Water Industries...................... 4,211
275,000 Takasago International(b).................... 2,041
-------
6,252
-------
Computer Software (2.2%):
66,000 PCA Corp..................................... 2,906
105,000 TDK Corp..................................... 6,261
-------
9,167
-------
Construction (2.6%):
650,000 Matsushita Electric Works.................... 7,052
100,000 Sho-Bond Construction Corp................... 3,738
-------
10,790
-------
Diversified (2.4%):
1,140,000 Mitsubishi Heavy Inds., Ltd.(b).............. 9,905
-------
Electrical & Electronic (5.9%):
55,000 Keyence Corp................................. 7,472
65,000 Mabuchi Motor................................ 4,137
600,000 Mitsubishi Electric Corp..................... 4,179
129,000 Rohm Corp.................................... 8,515
-------
24,303
-------
Electronic Components/Instruments (2.5%):
100,000 Hirose Electric.............................. 6,172
365,000 NEC Corp..................................... 3,960
-------
10,132
-------
Pharmaceuticals (4.2%):
250,000 Daiichi Pharmaceutical(b).................... 3,852
245,000 Santen Pharmaceutical........................ 5,696
</TABLE>
64
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------- -------
<S> <C> <C>
Common Stocks, continued:
Japan, continued:
Pharmaceuticals, continued:
450,000 Takeda Chemical Ind.(b)...................... $ 7,959
-------
17,507
-------
Restaurants (0.7%):
60,000 Doutor Coffee Co., Ltd....................... 2,790
-------
Retail (0.8%):
33,000 Autobacs Seven Co., Ltd...................... 3,189
-------
Services (2.0%):
61,000 Nichii Gakkan Co............................. 3,170
80,000 Secom........................................ 5,281
-------
8,451
-------
Telecommunications (1.2%):
500,000 Denki Kogyo Co., Ltd.(b)..................... 5,151
-------
Total Japan 107,637
-------
Malaysia (2.3%):
Engineering (1.8%):
1,061,000 United Engineers Ltd......................... 7,356
-------
Manufacturing-Capital Goods (0.5%):
500,000 Sungei Way Holdings Berhad(b)................ 2,345
-------
Total Malaysia 9,701
-------
Mexico (1.4%):
Beverages & Tobacco (0.2%):
297,000 Fomento Economico Mexicano, SA de CV......... 850
-------
Conglomerates (0.7%):
440,000 Grupo Carso SA de CV(b)...................... 3,117
-------
Telecommunications (0.5%):
120,000 Grupo Televisa SA(b)......................... 1,884
-------
Total Mexico 5,851
-------
Netherlands (6.5%):
Beverages & Tobacco (1.0%):
100,000 Grolsch NV................................... 4,101
-------
Broadcasting & Publishing (1.1%):
300,000 Elsevier NV.................................. 4,552
-------
Distribution (1.0%):
60,000 Hagemeyer NV................................. 4,274
-------
Office Equipment & Services (2.1%):
82,000 Oce-Van Der Grinten NV....................... 8,685
-------
Printing & Publishing (1.3%):
45,643 Wolters Kluwer NV............................ 5,185
-------
Total Netherlands 26,797
-------
New Zealand (1.1%):
Agriculture (0.4%):
600,000 Fernz Corp. Ltd.............................. 1,788
-------
Consumer Goods & Services (0.7%):
867,861 Fisher & Paykel Ind. Ltd..................... 2,783
-------
Total New Zealand 4,571
-------
Norway (0.7%):
Telecommunications (0.7%):
90,000 Nera AS...................................... 2,868
-------
Philippines (0.4%):
Construction (0.4%):
2,000,000 C&P Homes, Inc.(b)........................... 1,737
-------
Portugal (0.8%):
Beverages & Tobacco (0.8%):
180,000 Unicer-Uniao Cervejeira, SA.................. 3,206
-------
Singapore (1.1%):
Beverages & Tobacco (0.5%):
180,000 Fraser & Neave Ltd.(b)....................... 1,862
-------
Diversified (0.6%):
982,000 Singapore Technologies Industrial Corp.(b)... 2,602
-------
Total Singapore 4,464
-------
Spain (2.0%):
Beverages (1.1%):
85,000 Talbacalera SA(b)............................ 4,276
-------
Commercial Services (0.9%):
110,000 Prosegur, CIA de Seguridad SA(b)............. 3,861
-------
Total Spain 8,137
-------
Sweden (1.1%):
Engineering (1.1%):
200,000 Sandvik B.................................... 4,612
-------
Switzerland (3.1%):
Business Services (1.7%):
2,900 Societe General De Surveillance.............. 6,939
-------
Pharmaceuticals (1.4%):
770 Roche Holdings AG............................ 5,872
-------
Total Switzerland 12,811
-------
Thailand (0.8%):
Telecommunications (0.8%):
200,000 Advanced Information Service................. 3,134
-------
United Kingdom (10.6%):
Building Products (1.4%):
1,800,000 Polypipe PLC................................. 5,678
-------
Capital Goods (1.4%):
800,000 Powerscreen International PLC................ 5,668
-------
Commercial Services (1.4%):
900,000 Rentokil Group PLC........................... 5,720
-------
Computer Software (1.1%):
455,000 Logica PLC(b)................................ 4,560
</TABLE>
65
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------------- -------
<S> <C> <C>
Common Stocks, continued:
United Kingdom, continued:
Food Products & Services (1.5%):
700,000 Compass Group PLC............................ $ 6,406
--------
Machinery & Equipment (1.0%):
750,000 TT Group PLC................................. 4,021
--------
Manufacturing-Consumer Goods (1.4%):
2,125,000 Halma PLC.................................... 5,811
--------
Printing & Publishing (1.4%):
500,000 Reuters Holdings PLC......................... 6,052
--------
Total United Kingdom 43,916
--------
United States (8.5%):
Beverages (0.3%):
45,000 Quilmes Industrial Quins, ADR(b)............. 461
90,000 Quilmes Industrial SA(b)..................... 923
--------
1,384
--------
Home Furnishings (1.6%):
127,380 Industrie Natuzzi SPA, ADR(b)................ 6,528
--------
Oil & Gas Products & Services (0.5%):
100,000 Sociedad Anonima, ADR........................ 2,250
--------
Pharmaceuticals (0.4%):
45,000 Teva Pharmaceutical Industries, Ltd., ADR(b). 1,704
--------
Telecommunications (5.7%):
45,100 Cia de Telecomunicaciones de Chile SA, ADR... 4,425
98,700 Korea Mobile Telecommunications Corp., GDR(b) 1,690
50,000 Newbridge Network Corp., ADR(b).............. 3,275
150,000 Portugal Telecom SA.......................... 3,938
42,500 PT Indosat, ADR(b)........................... 1,424
81,000 Telecomunicacoes Brasileiras SA, ADR(b)...... 5,640
100,000 Telefonica de Argentina SA, ADR(b)........... 2,963
--------
23,355
--------
Total United States 35,221
--------
Total Common Stocks 375,438
--------
Mutual Funds (5.5%):
19,000,000 Parkstone Government Obligations Fund........ 19,000
3,810,479 Parkstone Prime Obligations Fund............. 3,811
--------
Total Mutual Funds 22,811
--------
Preferred Stocks (0.2%):
Australia (0.2%):
250,000 Village Roadshow Ltd......................... 876
--------
Total Australia 876
--------
Rights - Foreign Securities (0.0%):
180,000 Hong Kong & China Gas, 0.00%, 1/1/80(b)...... 47
770 Roche Holdings Jubileum Warrants, 0.00%,
5/5/98(b).................................... 24
--------
71
--------
Total Rights - Foreign Securities 71
--------
Total Investments, at value 399,196
--------
Total (Cost--$327,130)(a) $399,196
========
</TABLE>
Percentages indicated are based on net assets of $413,633.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securitites as follows:
<TABLE>
<S> <C>
Unrealized appreciation............ $ 72,823
Unrealized depreciation............ (757)
---------
Net unrealized appreciation........ $ 72,066
=========
</TABLE>
(b) Denotes non-income producing securities.
ADR--American Depository Receipt.
GDR--Global Depository Receipt.
<TABLE>
<CAPTION>
Contract Value Appreciation Delivery
Forward Currency Contracts Contract Price U.S. Dollars (Depreciation) Date
-------------- ------------ ------------- ----------
<S> <C> <C> <C> <C>
Currency Purchased:
British Pound .6485 $ 846 $ 6 7/1/96
Japanese Yen 108.9500 2,704 (18) 7/1/96
------------ -------------
Total Currency Purchased $3,550 $(12)
============ =============
Net receivable for forward currency
contracts purchased $3,538
=============
</TABLE>
See notes to financial statements.
66
<PAGE>
================================================================================
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ----------------------------------------------- ------
<C> <S> <C>
Common Stocks (42.1%):
Agriculture (0.5%):
10,200 CPC Industries................................. $ 734
------
Broadcasting & Cable (0.9%):
22,900 British Sky Broadcasting-ADR................... 930
18,800 Tele-communications-Class A(b)................. 341
------
1,271
------
Business Services (3.4%):
2,400 Alternative Resources Corp.(b)................. 88
17,850 Ceridian Corp.(b).............................. 901
7,650 Cintas Corp.................................... 409
15,400 Electronic Data Systems(b)..................... 828
15,643 First Data Corp................................ 1,246
1,000 First USA Paymentech, Inc.(b).................. 40
1,200 Intelliquest Information Group, Inc.(b)........ 39
3,100 Iron Mountain, Inc.(b)......................... 65
16,500 Paychex........................................ 794
5,100 Payment Services, Inc.(b)...................... 146
------
4,556
------
Commercial Goods & Services (0.1%):
4,400 Wackenhut Corrections Corp.(b)................. 147
------
Computer Hardware (1.6%):
13,100 3 Com Corp.(b)................................. 599
25,100 Cisco Systems, Inc.(b)......................... 1,421
1,300 Premenos Technology Corp.(b)................... 24
1,700 Veritas Software Corp.(b)...................... 73
------
2,117
------
Computer Software (3.6%):
2,300 Aspen Technologies, Inc.(b).................... 127
6,000 Cambridge Technology Partners, Inc.(b)......... 183
1,500 Computer Associates International, Inc......... 107
3,250 Dendrite International Inc.(b)................. 112
2,700 INSO Corp.(b).................................. 141
5,725 McAfee Associates, Inc.(b)..................... 281
45,625 Oracle Corp.(b)................................ 1,798
4,400 Ozemail Ltd-ADR(b)............................. 57
20,700 Parametric Technology Corp.(b)................. 898
11,800 Peoplesoft, Inc.(b)............................ 841
1,700 Project Software & Development, Inc.(b)........ 80
1,300 Raptor Systems, Inc.(b)........................ 34
3,100 Systemsoft Corp.(b)............................ 146
------
4,805
------
Consumer Goods & Services (3.2%):
2,000 Cerion Technologies, Inc.(b)................... 20
32,600 CUC International, Inc.(b)..................... 1,157
1,000 DVI, Inc.(b)................................... 16
22,900 Gillette Co.................................... 1,427
8,900 Kimberly Clark Corp............................ 688
6,500 Nike, Inc...................................... 668
1,500 Procter & Gamble Co............................ 136
1,300 Registry, Inc.(b).............................. 38
1,800 Suburban Lodges Of America(b).................. 42
2,200 Urocor, Inc.(b)................................ 27
1,900 USA Detergents, Inc.(b)........................ 76
------
4,295
------
Education (0.1%):
1,400 Maxis, Inc.(b)................................. 28
2,600 Sylvan Learning Systems, Inc.(b)............... 98
------
126
------
Electrical & Electronics (2.3%):
4,550 Actel Corp.(b)................................. 84
14,000 AMP, Inc....................................... 562
5,000 Applied Materials(b)........................... 153
4,700 Checkpoint Systems, Inc.(b).................... 162
10,100 Duracell International, Inc.................... 436
10,600 Emerson Electric............................... 958
3,300 Flextronics International, Ltd.(b)............. 87
1,200 General Electric Co............................ 104
17,006 Molex, Inc..................................... 500
------
3,046
------
Entertainment (1.6%):
18,200 Carnival Cruise Lines.......................... 526
11,450 Mirage Resorts(b).............................. 618
4,900 Regal Cinemas, Inc.(b)......................... 224
18,994 Viacom, Inc.-Class B(b)........................ 738
------
2,106
------
Financial Services (3.0%):
2,400 Aames Financial Corp........................... 86
15,400 American Express Co............................ 687
14,900 Associates First Capital(b).................... 561
1,300 Central Financial Acceptance Corp.(b).......... 18
6,700 Concord EFS, Inc.(b)........................... 238
10,400 Credit Acceptance Corp.(b)..................... 218
28,200 Federal National Mortgage Assoc................ 945
1,650 First Merchants Acceptance Corp.(b)............ 33
6,300 Household International........................ 479
4,732 Imperial Credit Industries, Inc.(b)............ 143
18,250 MBNA Corp...................................... 520
3,800 Oxford Resources Corp.- Class A(b)............. 88
------
4,016
------
Food & Beverages (0.2%):
4,100 PepsiCo, Inc................................... 145
1,500 Quilmes Industrial, ADR(b)..................... 15
3,000 The Coca Cola Co............................... 147
------
307
------
</TABLE>
Continued
67
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ----------------------------------------------- ------
Common Stocks, continued:
Funeral Services (0.7%):
<C> <S> <C>
4,400 Equity Corp. International(b).................. $ 119
15,400 Service Corp. International.................... 886
------
1,005
------
Health Care (2.6%):
21,800 Abbott Laboratories............................ 948
2,600 Columbia /HCA Healthcare Corp.................. 139
1,700 Compdent Corp.(b).............................. 79
1,900 HCIA, Inc.(b).................................. 120
27,700 HEALTHSOUTH Corp.(b)........................... 997
14,000 Johnson & Johnson.............................. 693
1,400 NCS Healthcare, Inc.-Class A(b)................ 42
3,700 Occusystems, Inc.(b)........................... 138
5,000 Orthodontic Centers Of America, Inc.(b)........ 133
1,400 Schering Plough Corp........................... 88
2,900 U.S. Healthcare, Inc........................... 160
------
3,537
------
Hotels & Lodging (0.9%):
17,200 Hospitality Franchise Systems(b)............... 1,204
2,400 Studio Plus Hotels, Inc.(b).................... 79
------
1,283
------
Industrial Goods & Services (1.3%):
21,600 Alco Standard Corp............................. 977
6,700 United Technologies Corp....................... 771
------
1,748
------
Insurance (1.6%):
7,100 American International Group, Inc.............. 700
3,800 Amerin Corp.(b)................................ 102
7,700 Marsh & McLennan............................... 743
9,750 SunAmerica, Inc................................ 551
------
2,096
------
Manufacturing (0.1%):
3,500 Miller Industries, Inc.(b)..................... 100
------
Medical - Equipment & Supplies (1.6%):
2,000 Boston Scientific Corp.(b)..................... 90
5,100 Gulf South Medical Supply, Inc.(b)............. 199
4,300 Henry Schein, Inc.(b).......................... 164
12,700 IDEXX Laboratories, Inc.(b).................... 498
2,300 Medquist, Inc.(b).............................. 42
9,500 Medtronic, Inc................................. 532
9,700 Omnicare, Inc.................................. 257
2,800 Orthologic Corp.(b)............................ 36
4,875 Phycor, Inc.(b)................................ 185
4,400 Serologicals Corp.(b).......................... 117
------
2,120
Medical - Hospital Services (0.2%):
2,200 Medcath, Inc.(b)............................... 26
2,000 NUCO2, Inc.(b)................................. 62
4,000 Total Renal Care Holdings, Inc.(b)............. 169
---
257
Medical--Biotechnology (0.0%):
1,700 Arterial Vascular Engineering, Inc.(b)......... 62
------
Office Equipment & Services (1.8%):
7,750 Danka Business Systems, ADR.................... 227
5,200 Hewlett Packard Co............................. 518
10,100 Reuters Holding, ADR(b)........................ 732
18,300 Xerox Corp..................................... 979
-----
2,456
-----
Oil & Gas Exploration Products & Services (0.1%):
3,000 Ypf Socledad Anonima........................... 68
-----
Pharmaceuticals (1.8%):
3,450 Dura Pharmaceuticals, Inc.(b).................. 193
9,900 Eli Lilly & Co................................. 644
2,400 Jones Medical Industries, Inc.................. 80
16,950 Merck & Co., Inc............................... 1,095
1,950 Parexel International Corp.(b)................. 94
2,100 Pfizer, Inc.................................... 150
1,700 Quintiles Transnational Corp.(b)............... 112
1,300 Teva Pharmaceutical, ADR....................... 49
-----
2,417
-----
Printing & Publishing (0.1%):
1,900 Desktop Data, Inc.(b).......................... 63
2,800 R.R. Donnelley Co.............................. 98
-----
161
-----
Restaurants (0.5%):
4,000 Landry's Seafood Restaurants(b)................ 99
11,100 Lone Star Steakhouse & Saloon(b)............... 419
2,300 Longhorn Steaks, Inc.(b)....................... 58
2,900 McDonald's Corp................................ 136
-----
712
-----
Retail Stores & Catalog (3.3%):
11,200 Autozone, Inc.(b).............................. 389
1,600 CDW Computer Center, Inc.(b)................... 111
2,700 Ha-lo Industries Inc.(b)....................... 70
17,750 Home Depot, Inc................................ 959
3,100 Just For Feet, Inc.(b)......................... 164
3,900 Men's Warehouse, Inc.(b)....................... 126
3,175 Petco Animal Supplies, Inc.(b)................. 91
15,275 Petsmart, Inc.(b).............................. 729
3,300 Renter's Choice, Inc.(b)....................... 84
5,250 Rexall Sundown Inc.(b)......................... 142
17,200 Sears Roebuck.................................. 836
19,800 Viking Office Products(b)...................... 621
</TABLE>
Continued
68
<PAGE>
================================================================================
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------------------ ------
<S> <C> <C>
Common Stocks, continued:
Retail Stores & Catalog, continued:
2,400 West Marine, Inc.(b)........................... $ 172
-----
4,494
-----
Technology (2.5%):
10,200 Automatic Data Processing, Inc................. 394
4,100 C. P. Clare Corp.(b)........................... 106
7,600 Computer Sciences(b)........................... 568
800 Electronics for Imaging, Inc.(b)............... 56
5,300 Intel Corp..................................... 389
20,050 Lsi Logic Corp.(b)............................. 521
6,050 Microsoft(b)................................... 727
6,200 Motorola, Inc.................................. 390
4,300 Sanmina Corp.(b)............................... 116
1,500 Viasoft, Inc.(b)............................... 97
2,000 Visio Corp.(b)................................. 72
------
3,436
------
Telecommunications (1.4%):
12,400 AirTouch Communications, Inc.(b)............... 350
1,600 Compania Telecomunicacion Chile, ADR........... 157
3,100 DSP Communications, Inc.(b).................... 159
3,000 Korea Mobile Telecommunications(b)............. 51
3,000 LCI International, Inc.(b)..................... 94
1,500 Part Indosat(Perusahaan Pereroan), ADR......... 50
5,000 Portugal Telecommunication SA, ADR............. 131
3,000 Telecommunicacoes Brasileiras, ADR............. 209
3,000 Telefonos De Argentina ADR..................... 89
4,100 Transaction Network Services(b)................ 88
9,500 WorldCom, Inc.(b).............................. 526
------
1,904
------
Wholesale Distribution (1.2%):
2,500 Barnett, Inc.(b)............................... 72
3,125 Brightpoint, Inc.(b)........................... 67
11,200 Cardinal Health, Inc........................... 808
19,100 Sysco Corp..................................... 654
-----
1,601
-----
Total Common Stocks 56,983
------
Foreign Stocks (7.7%):
Australia (0.3%):
Beverages & Tobacco (0.1%):
60,000 Fosters Brewing Group.......................... 103
------
Building Products (0.1%):
60,000 Pioneer International.......................... 175
------
Diversified (0.1%):
11,653 Howard Smith, Ltd.............................. 72
------
Belgium (0.1%):
Diversified (0.1%):
360 Colruyt SA(b).................................. 122
------
Foreign Stocks, continued:
Canada (0.3%):
Electronic Components/ Instruments (0.1%):
10,000 CAE, Inc.(b)................................... 83
4,000 Cinram, Ltd.................................... 87
------
170
------
Manufacturing-Consumer Goods (0.1%):
13,000 Bombardier Class B............................. 195
------
Natural Resources (0.1%):
5,000 Natural Resources.............................. 93
------
Denmark (0.1%):
Food Products & Services (0.1%):
4,000 Danisco A/s Dak20.............................. 199
-----
Finland (0.1%):
Retail Stores/Catalog (0.1%):
2,000 Stockmann Ab-b Free............................ 103
-----
France (0.7%):
Consumer Goods & Services (0.4%):
2,000 BIC Corp....................................... 284
800 Hermes International SA........................ 211
-----
495
-----
Retail Stores & Catalog (0.3%):
1,100 Castorama Dubois............................... 217
900 Docks De France................................ 191
-----
408
-----
Germany (0.6%):
Engineering (0.1%):
500 Mannesmann AG(b)............................... 172
-----
Health Care (0.1%):
2,400 Schering AG.................................... 174
-----
Machinery & Equipment (0.2%):
300 Linde AG....................................... 194
-----
Manufacturing-Consumer Goods (0.2%):
2,550 Adidas AG...................................... 212
-----
Hong Kong (0.2%):
Electronic Components/ Instruments (0.0%):
25,000 Johnson Electric............................... 56
-----
Gas & Electric Utility (0.1%):
66,000 Hong Kong & China Gas.......................... 105
-----
Real Estate (0.0%):
8,500 Sun Hung Kai Properties........................ 86
-----
Retail Stores/Catalog (0.1%):
90,000 Giordano International Ltd..................... 87
-----
</TABLE>
Continued
69
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------------------ ------
Foreign Stocks, continued:
Indonesia (0.1%):
Tobacco (0.1%):
<S> <C> <C>
6,000 Hanjaya Mandala Sampoerna...................... $ 68
------
Japan (2.4%):
Chemicals (0.3%):
6,000 Kurita Water Industries........................ 146
8,000 Takasago International......................... 59
13,000 Takeda Chemical Industries..................... 230
------
435
------
Computer Software (0.1%):
2,000 PCA Corp....................................... 88
------
Construction (0.1%):
3,200 Sho-bond Corp.................................. 120
------
Electrical & Electronic (0.8%):
1,700 Keyence Corp................................... 231
2,000 Mabuchi Motor Co. Ltd.......................... 127
20,000 Matsushita Electric Works...................... 217
16,000 Mitsubishi Electric............................ 111
3,000 Rohm Co........................................ 198
3,000 TDK Corp....................................... 179
------
1,063
------
Electronic Components/ Instruments (0.2%):
3,000 Hirose Electric................................ 185
10,000 NEC Corp. Japanese Ordinary..................... 108
------
293
------
Machinery & Equipment (0.2%):
26,000 Mitsubishi Heavy Inds........................... 226
------
Pharmaceuticals (0.2%):
8,000 Daiichi Pharmaceuticals......................... 123
8,000 Santen Pharmaceutical........................... 186
------
309
------
Restaurants (0.1%):
4,000 Doutor Coffee................................... 186
------
Retail - General Merchandise (0.1%):
1,000 Autobacs Seven Co. Limited...................... 97
------
Services (0.2%):
2,000 Nichii Gakkan Co................................ 104
2,000 Secom Co. Ltd................................... 132
------
236
------
Telecommunications (0.1%):
14,000 Denki Kogyo..................................... 144
------
Luxemburg (0.0%):
Beverages & Tobacco (0.0%):
3,000 Quilmes Industrial SA(b)........................ 31
------
Malaysia (0.2%)
Construction (0.1%):
25,000 Sungei Way Holdings BHD......................... 117
------
Engineering (0.1%):
27,000 United Engineers Ltd............................ 187
------
Mexico (0.1%):
Beverages & Tobacco (0.0%):
10,000 Fomento Economico............................... 29
------
Diversified (0.1%):
14,000 Grupo Carso A1(b)............................... 99
------
Telecommunications (0.0%):
4,000 Grupo Televisa(b)............................... 63
------
Netherlands (0.5%):
Beverages & Tobacco (0.1%):
3,500 Grolsch......................................... 144
------
Broadcasting & Publishing (0.1%):
10,000 Elsevier NLG1................................... 152
------
Distribution (0.1%):
1,900 Hagemeyer NV.................................... 135
------
Office Equipment & Services (0.2%):
2,600 Oce Van De Grinten.............................. 275
------
New Zealand (0.0%):
Appliances & Household Products (0.0%):
26,095 Fisher & Paykel................................. 84
------
Norway (0.0%):
Telecommunications (0.0%):
2,600 Nera AS......................................... 83
-----
Philippines (0.0%):
Construction (0.0%):
70,000 C&P Homes....................................... 61
-----
Portugal (0.1%):
Beverages & Tobacco (0.1%):
6,000 Unicer.......................................... 107
-----
Medical Equipment & Supplies (0.0%):
2,100 Medical Systems(b).............................. 59
-----
Singapore (0.1%):
Beverages & Tobacco (0.0%):
6,000 Fraser & Neave.................................. 62
-----
Diversified (0.1%):
29,000 Singapore Technologies Industrial Corp.......... 77
-----
Spain (0.2%):
Beverages & Tobacco (0.1%):
2,500 Tabacalera Spanish.............................. 126
-----
Services (0.1%):
3,200 Prosegur Comp Seguridad SA...................... 112
-----
</TABLE>
Continued
70
<PAGE>
===============================================================================
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996 SHARES
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------------------ ------
<S> <C> <C>
Foreign Stocks, continued
Switzerland (0.4%):
Business Services (0.2%):
100 Societe Generale............................. $ 239
-------
Pharmaceuticals (0.2%):
30 Roche Holding Genuss........................ 229
-------
Thailand (0.0%):
Telecommunications-Services And Equipmen (0.0%):
4,000 Advanced Information Service Public Co...... 63
-------
United Kingdom (1.1%):
Capital Goods (0.1%):
24,000 Powerscreen International PLC............... 170
-------
Computer Software (0.1%):
13,000 Logica(b)................................... 130
-------
Environmental Services (0.1%):
30,000 Rentokil Group PLC.......................... 191
-------
Food Products & Services (0.2%):
25,000 Compass Group............................... 229
-------
Machinery & Equipment (0.1%):
20,000 Tt Group PLC................................ 107
-------
Manufacturing-Consumer Goods (0.3%):
60,000 Halma PLC................................... 164
60,000 Polypipe PLC................................ 189
-------
353
-------
Printing & Publishing (0.2%):
18,000 Reuters Holdings............................ 218
-------
Total Foreign Stocks 10,418
-------
Corporate Bonds (4.5%):
Automotive Finance (0.5%):
600,000 General Motors Acceptance Corp., 5.50%,
10/15/02, Putable 10/15/95 @ 100............ 657
-------
Banking (0.4%):
500,000 Continental Bank N.A., 11.25%, 7/1/01....... 538
-------
Financial Services (1.4%):
500,000 Dean Witter Discover, 6.00%, 3/1/98......... 497
850,000 Lehman Brothers Holdings, 6.90%, 7/15/99.... 834
500,000 Structured Asset Securities Corp., 5.94%,
2/25/28..................................... 482
-------
1,813
-------
Gas & Electric Utility (0.9%):
250,000 British Gas & Finance, 8.38%, 9/8/99........ 261
1,100,000 Tenaga Nasional, 7.50%, 1/15/20*............ 986
-------
1,247
-------
Leasing (0.2%):
250,000 Hertz Corp., 9.50%, 5/15/98................. 263
-------
Retail Stores (0.7%):
1,000,000 Woolworth Corp., 7.00%, 6/1/00.............. 979
-------
Telecommunications (0.4%):
550,000 NYCTL 1996 - 1 Trust Class C, 7.11%, 2/25/01* 550
-------
Total Corporate Bonds 6,047
-------
Rights - Foreign Securities (0.0%):
5,500 Hong Kong & China Gas, 5/5/98(b)............ 1
30 SFR Roche Holdings Jubileum Warrants(b)..... 1
-------
Total Rights - Foreign Securities 2
-------
U.S. Government Agencies (9.9%)
Federal Farm Credit Bank
1,000,000 7.94%, 12/2/98, Callable 12/2/96 @ 100...... 1,007
Federal Home Loan Mortgage Corp.
53,972 8.25%, 8/15/19 , Series 1064-D............. 54
78,183 9.00%, 5/15/20, Gold Pool #A01002........... 81
248,511 9.50%, 10/1/20 , Pool #A00873............... 264
Federal National Mortgage Assoc.
248,880 9.00%, 8/1/09 , Pool #84251................. 259
185,942 8.25%, 7/1/17 , Pool #124439................ 189
234,709 9.00%, 7/25/20 , Series 90-84.............. 244
1,750,000 6.70%, 8/25/20 , Series 1992-217........... 1,664
1,112,649 8.00%, 11/1/23 , Pool #190251............... 1,121
974,840 9.50%, 1/1/25 , Pool #250210................ 1,035
Government National Mortgage Assoc.
190,539 8.00%, 6/15/17 , Pool #215187............... 192
499,334 6.50%, 9/15/23 , Pool #345871............... 467
1,079,921 6.50%, 12/15/23 , Pool #374650.............. 1,009
4,310,076 7.50%, 8/15/25 , Pool #780213............... 4,264
Lehman FHA - Title 1 Loan Trust
1,500,000 6.78%, 4/25/08.............................. 1,497
-------
Total U.S. Government Agencies 13,347
-------
U.S. Treasury Bonds (5.2%):
6,700,000 7.50%, 11/15/16............................. 7,041
-------
Total U.S. Treasury Bonds 7,041
-------
U.S. Treasury Notes (26.3%):
18,330,000 7.13%, 2/29/00(c)........................... 18,749
700,000 6.25%, 4/30/01.............................. 693
6,500,000 6.50%, 5/31/01(c)........................... 6,501
7,350,000 7.88%, 11/15/04(c).......................... 7,901
1,700,000 6.63%, 5/15/06(c)........................... 1,718
-------
Total U.S. Treasury Notes 35,562
-------
</TABLE>
71
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------------------ ------
<S> <C> <C>
Investment Companies (0.3%):
375,648 Parkstone Prime Obligations Fund............... $ 376
--------
Total Investment Companies 376
--------
Total Investments, at value 129,776
--------
Repurchase Agreements (2.6%):
3,579,000 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 3,714 Federal National
Mortgage Assoc. securities, 7.50%,
6/1/26, market value--$3,651).................. $ 3,579
--------
Total Repurchase Agreements 3,579
--------
Total (Cost-- $116,334)(a) $133,355
========
</TABLE>
- --------------
Percentages indicated are based on net assets of $135,230.
(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 securitites as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................. $17,039
Unrealized depreciation.............................. (25)
-------
Net unrealized appreciation.......................... $17,014
=======
</TABLE>
(b) Represents non-income producing security.
(c) All or a portion of this security has been loaned at June 30, 1996.
* Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Security Act of 1933.
ADR--American Depository Receipt.
GDR--Global Depository Receipt.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Contract Contract Value Appreciation Delivery
Forward Currency Contract Price U.S. Dollars (Depreciation) Date
---------- ------------ -------------- -----------
Currency Purchased:
British Sterling Pound .6485 $55 $ 0 7/1/96
=========== =============
Net receivable for forward currency
contracts purchased
$ 55
=============
</TABLE>
See notes to financial statements.
72
<PAGE>
===============================================================================
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Limited Maturity Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------- ----------
<S> <C> <C>
Corporate Bonds (76.5%):
Aerospace (0.6%):
1,000 British Aerospace Finance, 7.50%,
6/11/97**.................................. $ 1,011
----------
Airline Leasing (2.1%):
3,226 Alps, 7.15%, 9/15/04, Series 94-1.............. 3,242
----------
Asset-Backed (2.9%):
1,000 AT&T Universal Card Master Trust, 5.63%,
6/18/01*..................................... 1,000
52 EQ Asset Trust, Series 93-A, 5.00%,
10/15/98**................................... 53
2,854 Greentree Home Improvement Loan Trust,
7.15%, 7/15/14............................... 2,878
526 Merrill Lynch Mortgage Investors, Inc.,
9.80%, 10/15/08.............................. 534
----------
4,465
----------
Automotive Finance (4.8%):
5,000 Bayerische Vereinsbank, 8.13%, 1/27/00......... 5,286
2,101 USAA Auto Loan Grantor Trust, Series 1993
-1A, 3.90%, 3/15/99.......................... 2,083
----------
7,369
----------
Banking (5.9%):
3,000 Barclays, 11.63%, 5/1/03...................... 3,236
5,000 First USA Bank, 5.85%, 2/22/01................ 4,728
1,000 Wachovia Bank, 6.70%, 4/14/99................. 1,001
----------
8,965
----------
Consumer Goods & Services (3.3%):
5,000 TCI Communications Inc., 7.25%, 6/15/99 ...... 5,019
----------
Electric Utility (6.2%):
2,000 Hawaiian Electric, 5.15%, 12/1/96............. 1,993
1,750 Iberdola Corp., 7.50%, 10/1/02................ 1,781
2,675 National Rural Utilities, 9.64%, 5/19/97...... 2,752
3,000 Southern California Edison, 5.90%, 1/15/97.... 2,996
----------
9,522
----------
Financial Services (22.7%):
3,000 American Express Co., 11.63%, 12/12/00........ 3,248
5,000 AT&T Capital Corp., 6.49%, 5/17/99............ 4,944
4,060 Commercial Credit, 10.00%, 5/1/99............. 4,410
3,000 Fletcher Challenge, 9.25%, 5/15/97............ 3,071
1,576 Greentree Financial Corp., 7.25%, 7/15/05,
CMO......................................... 1,572
970 Greentree Financial Corp., 5.60%, 4/15/19,
Series 1994-1, Class A1..................... 969
1,675 Greentree Financial Corp., 5.90%, 1/15/21,
Series 1995-F............................... $1,664
1,190 Greentree Securitized Net Interest Margin
Trust, 6.90%, 2/15/04, Series 1994-A........ 1,178
5,000 Lehman Brothers, 6.85%, 5/17/99............... 4,996
2,000 Mony Funding, Inc., 8.25%, 10/29/96........... 2,013
4,900 Structured Asset Securities Corp., 5.75%,
2/25/08..................................... 4,865
1,750 Structured Asset Securities Corp., 5.94%,
2/25/28..................................... 1,687
----------
34,617
----------
Gas Utility (2.6%):
3,750 British Gas & Finance, 8.38%, 9/8/99.......... 3,915
----------
Government Agency (11.2%):
7,437 Government Trust Certificates, 8.55%,
11/15/97.................................... 7,455
5,000 Ontario Province, 8.50%, 2/28/01.............. 5,269
5,900 Republic of Italy, 0.00%, 1/10/01............. 4,340
----------
17,064
----------
Homebuilding & Related Financial Services (3.0%):
4,559 LB Mortgage Trust, 8.00%, 3/20/99, Series
91-92, Class A1............................... 4,546
----------
Leasing (3.3%):
4,750 Hertz Corp., 9.50%, 5/15/98................... 4,999
----------
Oil Products & Services (1.3%):
2,000 Burmah Castrol BV, 7.00%, 12/15/97............ 2,013
----------
Retail Stores (5.9%):
4,000 Sears, 7.12%, 6/26/01......................... 4,035
5,000 Woolworth Corp., 7.00%, 6/1/00................ 4,894
----------
8,929
----------
Telecommunications (0.7%):
1,100 NYCTL 1996 - 1 Trust Class C, 7.11%,
2/25/01**..................................... 1,099
----------
Total Corporate Bonds 116,775
----------
Foreign (1.4%):
2,000 Tokyo Metro Government, 10.38%,
10/20/97................................... 2,103
----------
Total Foreign 2,103
----------
U.S. Government Agencies (1.3%):
Lehman FHA - Title 1 Loan Trust
2,000 6.78%, 4/25/08...................................... 1,996
----------
Total U.S. Government Agencies 1,996
----------
</TABLE>
73
<PAGE>
===============================================================================
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Limited Maturity Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------- ------------
<S> <C> <C>
U.S. Treasury Notes (15.5%):
9,100 6.88%, 7/31/99.................................. $ 9,236
9,720 7.13%, 2/29/00(b)............................... 9,943
4,500 6.38%, 3/31/01.................................. 4,479
--------
Total U.S. Treasury Notes 23,658
--------
Total Investments, at value 144,532
--------
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------- ------------
<S> <C> <C>
Repurchase Agreements (3.7%):
5,717 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 5,932, Federal National
Mortgage Assoc., 7.50%, 6/1/26, market
value--$5,831)............................ $5,717
-----------
Total Repurchase Agreements 5,717
-----------
Total (Cost-- $151,425)(a) $150,249
=========
</TABLE>
- -----------------
Percentages indicated are based on net assets of $152,629.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securitites as follows:
Unrealized appreciation..................... $ 456
Unrealized depreciation..................... (1,632)
-------
Net unrealized depreciation ................ $(1,176)
=======
(b) All or a portion of this security has been loaned at June 30, 1996.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. 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 at June 30, 1996.
** Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Securities Act of 1933.
CMO--Collateralized Mortgage Obligation.
See notes to financial statements.
74
<PAGE>
<TABLE>
<CAPTION>
===============================================================================
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Intermediate Government Obligations Fund
(Amounts in Thousands)
Principal Security Market
Amount Description Value
- --------- ------------------------------------- --------
<S> <C> <C>
U.S. Government Agencies (33.2%):
Federal Home Loan Banks
10,000 7.61%, 9/28/01 $ 10,576
Federal Home Loan Mortgage Corp.
10,000 0.00%, 7/1/96 10,000
73 6.50%, 3/1/97 71
1,401 8.00%, 11/1/09 1,412
Federal National Mortgage Assoc.
3,125 11.50%, 9/15/01 3,359
11,000 7.38%, 3/28/05 11,244
1,914 9.00%, 8/1/09 1,990
4,537 13.00%, 8/1/15 5,352
1,859 8.25%, 7/1/17 1,889
939 9.00%, 7/25/20 977
7,000 7.50%, 8/25/22 7,076
GMAC FHA Project Loans
3,110 7.43%, 7/1/21 , #36 3,170
Government National Mortgage Assoc.
6,858 6.50%, 12/15/23 , Pool # 354714 6,415
7,807 7.50%, 8/15/25 , Pool #780213 7,724
71 9.50%, 1/20/16 , Pool # 149721 76
380 9.50%, 2/20/16 , Pool # 150634 403
205 9.50%, 3/20/16 , Pool # 149729 217
592 9.50%, 4/20/16 , Pool # 149718 628
198 9.50%, 5/20/16 , Pool # 158468 210
601 9.50%, 6/20/16 , Pool # 166048 638
268 9.50%, 7/20/16 , Pool # 002590 284
173 9.50%, 9/20/16 , Pool # 170929 184
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- ------------------------------------- --------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued
137 9.50%, 8/20/17 , Pool # 214044 $ 145
Government Trust Certificates
2,937 6.55%, 11/15/97 2,944
Guaranteed Export Trust
959 6.61%, 6/15/99, Series 94-D 961
Panama Aid
4,934 6.66%, 12/31/03 4,888
--------
Total U.S. Government Agencies 82,833
--------
U.S. Treasury Notes (64.5%):
73,200 7.25%, 2/15/98 74,530
7,700 6.88%, 7/31/99 7,815
13,700 7.50%, 10/31/99 14,148
41,700 7.13%, 2/29/00(b) 42,654
11,000 6.13%, 7/31/00(b) 10,877
10,500 7.88%, 11/15/04(b) 11,287
--------
Total U.S. Treasury Notes 161,311
--------
Total Investments, at value 244,144
--------
Repurchase Agreements (1.8%):
4,634 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 4,808 Federal National
Mortgage Assoc. securities, 7.50%, 6/1/26,
market value--$4,727) 4,634
--------
Total Repurchase Agreements 4,634
--------
Total (Cost-- $248,530(a) $248,778
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $250,190.
(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 $80. Cost
for federal income tax purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation $ 1,532
Unrealized depreciation (1,364)
-------
Net unrealized appreciation $ 168
=======
</TABLE>
(b) All or portion of this security has been loaned at June 30, 1996.
See notes to financial statements.
75
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
Corporate Bonds (1.5%):
Collateral Mortgage Obligations (1.2%):
1,780 Drexel Burnham Lambert, Series H Class 4,
8.50%, 4/1/17...........................................$ 1,814
629 Prudential Bache Cmo Trust Ser. 12 Class F.,
8.48%, 10/20/20......................................... 648
-------
2,462
-------
Financial Services (0.3%):
688 Cityfed Mortgage Trust, 10.00%, 1/1/18.................. 682
-------
Total Corporate Bonds 3,144
-------
U.S. Government Agencies (78.2%):
Federal Home Loan Mortgage Corp. (17.8 %):
1 7.00%, 1/1/02.......................................... 1
101 8.00%, 12/1/01......................................... 103
274 8.00%, 2/1/02.......................................... 279
168 8.00%, 3/1/02.......................................... 172
74 8.00%, 4/1/02.......................................... 76
179 8.00%, 6/1/02.......................................... 183
47 8.00%, 7/1/02.......................................... 48
445 8.00%, 9/1/02.......................................... 455
49 8.75%, 6/1/04.......................................... 51
85 8.75%, 3/1/05.......................................... 88
316 8.75%, 8/1/07.......................................... 327
38 8.75%, 1/1/08.......................................... 40
67 8.75%, 3/1/08.......................................... 69
24 8.75%, 4/1/08.......................................... 25
133 8.75%, 5/1/08.......................................... 138
207 8.75%, 10/1/08......................................... 214
69 8.75%, 11/1/08......................................... 72
153 8.75%, 3/1/09.......................................... 159
18 8.75%, 5/1/09.......................................... 18
70 8.75%, 8/1/09.......................................... 72
67 8.75%, 9/1/09.......................................... 70
68 8.75%, 2/1/10.......................................... 71
148 8.75%, 6/1/10.......................................... 153
172 8.75%, 8/1/10.......................................... 178
33 8.75%, 7/1/12.......................................... 34
79 8.75%, 10/1/14......................................... 82
20 8.75%, 6/1/16.......................................... 21
203 8.75%, 8/1/16.......................................... 210
360 8.75%, 2/1/17.......................................... 372
59 8.75%, 3/1/17.......................................... 61
925 8.75%, 5/1/17.......................................... 957
116 8.75%, 7/1/17.......................................... 120
105 8.75%, 8/1/17.......................................... 109
38 9.00%, 8/1/01.......................................... 39
30 9.00%, 9/1/01.......................................... 31
34 9.00%, 12/1/01......................................... 35
1,912 9.00%, 6/1/14.......................................... 1,993
2,190 9.00%, 10/1/17......................................... 2,283
3 9.50%, 4/1/01.......................................... 4
16 9.50%, 7/1/01.......................................... 17
23 9.50%, 8/1/01.......................................... 24
42 9.50%, 9/1/01.......................................... 44
135 9.50%, 10/1/01......................................... 142
50 9.50%, 11/1/01......................................... 52
117 9.50%, 12/1/01......................................... 122
12 9.50%, 1/1/02.......................................... 13
29 9.50%, 9/1/02.......................................... 31
26 9.50%, 10/1/02......................................... 27
119 9.50%, 12/1/02......................................... 124
59 9.50%, 2/1/03.......................................... 61
40 9.50%, 6/1/03.......................................... 42
152 9.50%, 12/1/03......................................... 159
20 9.50%, 3/1/04.......................................... 21
77 9.50%, 7/1/04.......................................... 81
50 9.50%, 8/1/04.......................................... 52
84 9.50%, 10/1/04......................................... 88
3,625 9.50%, 6/1/11.......................................... 3,852
5,683 9.50%, 12/15/18........................................ 5,922
1,650 9.50%, 1/1/20.......................................... 1,753
33 10.00%, 7/1/00......................................... 34
22 10.00%, 9/1/00......................................... 23
35 10.00%, 12/1/00........................................ 36
5 10.00%, 1/1/01......................................... 6
64 10.00%, 2/1/01......................................... 67
211 10.00%, 3/1/01......................................... 220
36 10.00%, 6/1/01......................................... 38
7 10.00%, 7/1/01......................................... 8
70 10.00%, 8/1/01......................................... 73
145 10.00%, 9/1/01......................................... 152
154 10.00%, 10/1/01........................................ 161
67 10.00%, 11/1/01........................................ 70
197 10.00%, 10/1/02........................................ 206
25 10.00%, 11/1/02........................................ 27
191 10.00%, 12/1/02........................................ 291
198 10.00%, 3/1/03......................................... 207
204 10.00%, 10/1/03........................................ 214
27 10.00%, 2/1/04......................................... 28
16 10.00%, 4/1/04......................................... 17
313 10.00%, 6/1/04......................................... 329
91 10.00%, 8/1/04......................................... 95
77 10.50%, 8/1/99......................................... 81
146 10.50%, 1/1/00......................................... 154
171 10.50%, 6/1/00......................................... 179
404 10.50%, 7/1/00......................................... 424
61 10.50%, 8/1/00......................................... 64
92 10.50%, 9/1/00......................................... 96
348 10.50%, 10/1/00........................................ 365
638 10.50%, 11/1/00........................................ 669
298 10.50%, 12/1/00........................................ 313
225 10.50%, 1/1/01......................................... 237
40 10.50%, 2/1/01......................................... 43
43 10.50%, 3/1/01......................................... 45
</TABLE>
Continued
76
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- ------
<S> <C> <C>
U.S. Government Agencies, continued:
Federal Home Loan Mortgage Corp., continued:
6 10.50%, 4/1/01......................................... $ 6
141 10.50%, 11/1/02........................................ 147
21 10.50%, 2/1/03......................................... 23
87 10.50%, 4/1/04......................................... 91
88 10.50%, 7/1/04......................................... 92
1,912 10.50%, 12/1/19........................................ 2,092
27 11.00%, 4/1/00......................................... 28
241 11.00%, 5/1/00......................................... 253
267 11.00%, 8/1/00......................................... 281
218 11.00%, 9/1/00......................................... 230
771 11.00%, 10/1/00........................................ 811
161 11.00%, 1/1/01......................................... 171
219 11.00%, 2/1/01......................................... 231
173 11.00%, 4/1/01......................................... 182
3 11.50%, 9/1/98......................................... 3
24 11.50%, 3/1/99......................................... 26
3 11.50%, 1/1/00......................................... 3
26 11.50%, 2/1/00......................................... 28
146 11.50%, 5/1/00......................................... 156
24 11.50%, 9/1/00......................................... 25
22 11.50%, 10/1/00........................................ 24
46 11.50%, 11/1/00........................................ 49
10 11.50%, 12/1/00........................................ 11
58 11.50%, 1/1/01......................................... 61
21 11.50%, 4/1/01......................................... 22
116 11.75%, 1/1/13......................................... 130
44 11.75%, 6/1/14......................................... 49
135 11.75%, 5/1/15......................................... 152
23 12.00%, 11/1/99........................................ 25
78 12.00%, 1/1/00......................................... 83
255 12.00%, 3/1/00......................................... 273
294 12.00%, 4/1/00......................................... 314
57 12.00%, 5/1/00......................................... 62
22 12.00%, 6/1/00......................................... 23
82 12.00%, 9/1/00......................................... 88
101 12.00%, 11/1/00........................................ 108
25 12.00%, 9/1/11......................................... 28
10 12.00%, 6/1/20......................................... 11
1,863 12.25%, 8/1/15......................................... 2,128
45 12.50%, 7/1/99......................................... 48
7 12.50%, 8/1/99......................................... 7
244 12.50%, 10/1/99........................................ 262
29 12.50%, 11/1/09........................................ 33
102 12.50%, 1/1/13......................................... 115
27 12.50%, 6/1/15......................................... 30
Federal National Mortgage Assoc. (16.8%):
3,000 7.50%, 8/25/22......................................... 3,032
15,355 7.88%, 2/24/05......................................... 16,174
885 8.50%, 9/1/07.......................................... 908
17 8.75%, 9/1/05.......................................... 17
50 9.00%, 4/1/97.......................................... 51
162 9.00%, 9/1/97.......................................... 166
119 9.00%, 10/1/97......................................... 122
21 9.00%, 11/1/97......................................... 21
7,825 9.00%, 10/25/00........................................ 8,146
2,112 9.00%, 7/25/20......................................... 2,199
15 9.50%, 5/1/97.......................................... 16
161 9.50%, 6/1/97.......................................... 164
46 10.00%, 8/1/01......................................... 48
63 10.00%, 10/1/01........................................ 66
34 10.00%, 11/1/01........................................ 36
87 10.00%, 12/1/02........................................ 92
202 10.00%, 1/1/03......................................... 212
10 10.50%, 9/1/00......................................... 11
30 10.50%, 10/1/00........................................ 32
38 10.50%, 11/1/00........................................ 40
54 10.50%, 12/1/00........................................ 56
22 10.50%, 1/1/01......................................... 23
149 10.50%, 2/1/01......................................... 157
13 10.50%, 6/1/01......................................... 13
54 10.50%, 8/1/01......................................... 57
18 10.50%, 11/1/01........................................ 19
36 10.50%, 2/1/04......................................... 38
43 10.50%, 5/1/04......................................... 45
21 10.75%, 9/1/00......................................... 22
22 11.00%, 2/1/01......................................... 23
346 11.00%, 9/1/06......................................... 367
77 11.25%, 6/1/13......................................... 86
116 11.25%, 5/1/14......................................... 130
14 11.50%, 12/1/98........................................ 15
27 11.50%, 11/1/99........................................ 30
48 11.50%, 2/1/00......................................... 52
33 11.50%, 3/1/00......................................... 36
15 11.50%, 8/1/00......................................... 16
30 11.75%, 7/1/13......................................... 34
6 11.75%, 10/1/13........................................ 7
11 11.75%, 11/1/13........................................ 13
8 12.00%, 1/1/99......................................... 9
28 12.00%, 4/1/00......................................... 30
23 12.00%, 7/1/00......................................... 25
15 12.00%, 3/1/12......................................... 17
3 12.00%, 4/1/12......................................... 3
80 12.00%, 10/1/12........................................ 90
100 12.00%, 1/1/13......................................... 113
27 12.00%, 4/1/13......................................... 31
86 12.00%, 7/1/13......................................... 97
45 12.00%, 8/1/13......................................... 51
11 12.00%, 9/1/13......................................... 13
579 12.50%, 5/1/15......................................... 658
Government National Mortgage Assoc. (43.6%):
4,409 6.50%, 11/15/23........................................ 4,128
3,573 6.50%, 12/15/23........................................ 3,343
</TABLE>
Continued
77
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
43 9.00%, 10/15/04.........................................$ 45
10 9.00%, 10/20/04......................................... 11
95 9.00%, 11/15/04......................................... 100
171 9.00%, 12/15/04......................................... 179
124 9.00%, 1/15/05.......................................... 129
105 9.00%, 2/15/05.......................................... 110
89 9.00%, 3/15/05.......................................... 94
97 9.00%, 9/15/08.......................................... 101
475 9.00%, 10/15/08......................................... 498
119 9.00%, 11/15/08......................................... 125
519 9.00%, 12/15/08......................................... 544
41 9.00%, 1/15/09.......................................... 43
153 9.00%, 2/15/09.......................................... 160
217 9.00%, 3/15/09.......................................... 228
167 9.00%, 4/15/09.......................................... 175
333 9.00%, 5/15/09.......................................... 350
63 9.00%, 6/15/09.......................................... 66
30 9.50%, 9/15/98.......................................... 32
34 9.50%, 5/15/99.......................................... 36
49 9.50%, 4/15/01.......................................... 52
114 9.50%, 10/15/01......................................... 120
8 9.50%, 11/20/01......................................... 9
57 9.50%, 7/15/03.......................................... 60
168 9.50%, 7/15/04.......................................... 177
193 9.50%, 4/15/05.......................................... 204
74 9.50%, 6/15/05.......................................... 78
130 9.50%, 12/15/05......................................... 137
1,032 9.50%, 6/15/09.......................................... 1,103
1,457 9.50%, 7/15/09.......................................... 1,557
1,592 9.50%, 8/15/09.......................................... 1,702
1,781 9.50%, 9/15/09.......................................... 1,905
4,016 9.50%, 10/15/09......................................... 4,198
1,042 9.50%, 11/15/09......................................... 1,114
86 9.50%, 7/15/13.......................................... 92
8 9.50%, 11/15/15......................................... 8
156 9.50%, 2/15/16.......................................... 166
372 9.50%, 3/15/16.......................................... 398
636 9.50%, 4/15/16.......................................... 679
914 9.50%, 5/15/16.......................................... 977
626 9.50%, 6/15/16.......................................... 669
387 9.50%, 7/15/16.......................................... 414
530 9.50%, 8/15/16.......................................... 566
377 9.50%, 9/15/16.......................................... 403
140 9.50%, 10/15/16......................................... 150
151 9.50%, 11/15/16......................................... 161
216 9.50%, 12/15/16......................................... 231
272 9.50%, 1/15/17.......................................... 290
88 9.50%, 2/15/17.......................................... 94
112 9.50%, 3/15/17.......................................... 120
112 9.50%, 4/15/17.......................................... 119
283 9.50%, 6/15/17.......................................... 302
246 9.50%, 7/15/17.......................................... 263
249 9.50%, 8/15/17.......................................... 267
623 9.50%, 9/15/17.......................................... 666
386 9.50%, 10/15/17......................................... 413
255 9.50%, 11/15/17......................................... 273
56 9.50%, 12/15/17......................................... 60
52 9.50%, 1/15/18.......................................... 56
17 9.50%, 2/15/18.......................................... 19
255 9.50%, 4/15/18.......................................... 272
87 9.50%, 5/15/18.......................................... 92
276 9.50%, 6/15/18.......................................... 295
228 9.50%, 7/15/18.......................................... 244
134 9.50%, 8/15/18.......................................... 144
149 9.50%, 9/15/18.......................................... 160
37 9.50%, 10/15/18......................................... 40
68 9.50%, 11/15/18......................................... 73
280 9.50%, 12/15/18......................................... 300
164 9.50%, 1/15/19.......................................... 175
236 9.50%, 2/15/19.......................................... 252
66 9.50%, 3/15/19.......................................... 71
104 9.50%, 4/15/19.......................................... 111
77 9.50%, 11/15/19......................................... 82
83 9.50%, 3/15/20.......................................... 88
165 9.50%, 5/15/20.......................................... 177
95 9.50%, 6/15/20.......................................... 101
80 9.50%, 8/15/20.......................................... 86
30 9.50%, 10/15/20......................................... 32
58 9.50%, 11/15/20......................................... 62
1,055 9.50%, 4/15/21.......................................... 1,127
132 9.50%, 5/15/21.......................................... 141
57 9.50%, 6/15/21.......................................... 61
83 9.50%, 7/15/21.......................................... 89
109 10.00%, 9/20/00......................................... 117
54 10.00%, 11/20/00........................................ 58
25 10.00%, 12/15/00........................................ 27
10 10.00%, 1/15/01......................................... 11
7 10.00%, 3/15/01......................................... 7
14 10.00%, 1/15/03......................................... 15
72 10.00%, 9/15/03......................................... 76
158 10.00%, 3/15/04......................................... 167
93 10.00%, 4/15/04......................................... 98
494 10.00%, 5/15/04......................................... 524
297 10.00%, 6/15/04......................................... 315
113 10.00%, 7/15/04......................................... 120
68 10.00%, 8/15/04......................................... 72
255 10.00%, 7/15/06......................................... 270
117 10.25%, 2/15/01......................................... 126
49 10.25%, 4/15/01......................................... 52
19 10.50%, 12/15/97........................................ 20
29 10.50%, 3/15/98......................................... 30
42 10.50%, 4/15/98......................................... 44
</TABLE>
Continued
78
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
60 10.50%, 5/15/98.........................................$ 64
54 10.50%, 6/15/98......................................... 57
25 10.50%, 8/15/98......................................... 26
26 10.50%, 11/15/98........................................ 26
19 10.50%, 2/15/99......................................... 20
9 10.50%, 3/15/99......................................... 10
42 10.50%, 9/15/00......................................... 44
16 10.50%, 10/15/00........................................ 17
5 10.50%, 1/15/01......................................... 5
33 10.50%, 2/15/01......................................... 35
57 10.50%, 8/15/01......................................... 61
17 10.75%, 1/15/98......................................... 18
14 10.75%, 7/15/98......................................... 16
39 10.75%, 9/15/98......................................... 42
12 11.00%, 12/15/97........................................ 13
39 11.00%, 1/15/98......................................... 42
7 11.00%, 2/15/98......................................... 8
12 11.00%, 4/15/98......................................... 13
106 11.00%, 11/15/98........................................ 112
33 11.00%, 12/15/98........................................ 35
29 11.00%, 4/15/00......................................... 31
254 11.00%, 5/15/00......................................... 270
188 11.00%, 6/15/00......................................... 200
22 11.00%, 8/15/00......................................... 23
180 11.00%, 9/15/00......................................... 191
13 11.00%, 10/15/00........................................ 14
148 11.00%, 11/15/00........................................ 157
283 11.00%, 12/15/00........................................ 301
260 11.00%, 1/15/01......................................... 275
67 11.00%, 2/15/01......................................... 71
172 11.00%, 3/15/04......................................... 184
165 11.00%, 8/15/04......................................... 176
188 11.00%, 5/20/19......................................... 206
11 11.25%, 5/15/98......................................... 12
37 11.25%, 7/15/98......................................... 40
44 11.50%, 1/15/99......................................... 47
15 11.50%, 7/15/99......................................... 16
59 11.50%, 9/15/99......................................... 63
80 11.50%, 10/15/99........................................ 85
25 11.50%, 1/20/00......................................... 26
49 11.50%, 2/15/00......................................... 52
6 11.50%, 3/15/00......................................... 6
11 11.50%, 4/15/00......................................... 11
145 11.50%, 5/15/00......................................... 154
2 11.50%, 6/15/00......................................... 2
34 11.50%, 7/15/00......................................... 36
26 11.50%, 8/15/00......................................... 27
5 11.50%, 12/15/00........................................ 5
139 11.50%, 6/20/04......................................... 155
24 11.50%, 3/15/11......................................... 27
24 11.50%, 4/15/13......................................... 27
56 11.50%, 6/15/13......................................... 63
33 11.50%, 8/15/13......................................... 37
58 11.50%, 9/20/13......................................... 64
3 11.50%, 10/20/13........................................ 3
5 11.50%, 11/20/13........................................ 6
73 11.50%, 8/15/14......................................... 82
31 11.50%, 10/15/14........................................ 35
84 11.50%, 5/15/15......................................... 95
31 11.50%, 6/20/15......................................... 34
13 11.50%, 12/15/15........................................ 15
123 11.50%, 3/20/18......................................... 136
153 11.50%, 4/20/19......................................... 169
77 11.50%, 5/20/19......................................... 85
60 11.50%, 5/20/21......................................... 66
30 11.75%, 12/15/97........................................ 33
134 11.75%, 4/15/99......................................... 148
292 11.75%, 5/15/99......................................... 321
41 11.75%, 10/15/14........................................ 45
2 12.00%, 5/20/99......................................... 2
22 12.00%, 7/20/99......................................... 23
11 12.00%, 8/20/99......................................... 11
130 12.00%, 5/15/00......................................... 138
90 12.00%, 6/15/00......................................... 95
67 12.00%, 6/20/00......................................... 70
52 12.00%, 7/20/00......................................... 54
63 12.00%, 8/20/00......................................... 66
4 12.00%, 4/15/11......................................... 4
40 12.00%, 8/15/12......................................... 46
126 12.00%, 11/15/12........................................ 144
362 12.00%, 12/15/12........................................ 416
148 12.00%, 1/15/13......................................... 169
88 12.00%, 2/15/13......................................... 101
236 12.00%, 8/15/13......................................... 267
162 12.00%, 9/15/13......................................... 182
67 12.00%, 11/15/13........................................ 76
5 12.00%, 12/15/13........................................ 5
87 12.00%, 1/15/14......................................... 100
105 12.00%, 2/15/14......................................... 121
315 12.00%, 3/15/14......................................... 361
102 12.00%, 4/15/14......................................... 117
83 12.00%, 4/20/14......................................... 93
283 12.00%, 5/15/14......................................... 325
44 12.00%, 6/15/14......................................... 51
61 12.00%, 9/15/14......................................... 71
35 12.00%, 12/15/14........................................ 40
205 12.00%, 1/15/15......................................... 235
356 12.00%, 2/15/15......................................... 408
448 12.00%, 3/15/15......................................... 514
543 12.00%, 4/15/15......................................... 623
652 12.00%, 5/15/15......................................... 748
920 12.00%, 6/15/15......................................... 1,056
357 12.00%, 7/15/15......................................... 410
</TABLE>
Continued
79
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
195 12.00%, 8/15/15.........................................$ 224
112 12.00%, 9/15/15......................................... 128
64 12.00%, 10/15/15........................................ 74
25 12.00%, 11/15/15........................................ 29
30 12.00%, 12/15/15........................................ 34
198 12.00%, 1/15/16......................................... 227
35 12.00%, 5/15/18......................................... 40
108 12.25%, 1/20/14......................................... 121
60 12.50%, 12/15/99........................................ 64
169 12.50%, 4/15/10......................................... 196
271 12.50%, 5/15/10......................................... 315
328 12.50%, 6/15/10......................................... 380
63 12.50%, 7/15/10......................................... 73
20 12.50%, 8/15/10......................................... 23
111 12.50%, 9/15/10......................................... 129
6 12.50%, 10/15/10........................................ 7
174 12.50%, 11/15/10........................................ 202
441 12.50%, 12/15/10........................................ 513
144 12.50%, 1/15/11......................................... 167
2 12.50%, 2/15/11......................................... 2
28 12.50%, 3/15/11......................................... 32
6 12.50%, 4/15/12......................................... 7
33 12.50%, 3/15/13......................................... 38
317 12.50%, 10/15/13........................................ 369
48 12.50%, 10/20/13........................................ 54
236 12.50%, 11/15/13........................................ 274
51 12.50%, 11/20/13........................................ 58
169 12.50%, 12/15/13........................................ 197
59 12.50%, 12/20/13........................................ 67
191 12.50%, 1/15/14......................................... 223
67 12.50%, 3/15/14......................................... 78
115 12.50%, 4/15/14......................................... 134
39 12.50%, 4/20/14......................................... 44
492 12.50%, 5/15/14......................................... 571
646 12.50%, 6/15/14......................................... 745
102 12.50%, 6/20/14......................................... 116
384 12.50%, 7/15/14......................................... 446
119 12.50%, 7/20/14......................................... 135
22 12.50%, 8/15/14......................................... 26
39 12.50%, 8/20/14......................................... 44
66 12.50%, 9/15/14......................................... 76
28 12.50%, 9/20/14......................................... 32
92 12.50%, 10/15/14........................................ 107
61 12.50%, 10/20/14........................................ 69
45 12.50%, 11/15/14........................................ 53
73 12.50%, 11/20/14........................................ 83
269 12.50%, 12/15/14........................................ 313
87 12.50%, 12/20/14........................................ 99
573 12.50%, 1/15/15......................................... 666
354 12.50%, 2/15/15......................................... 411
102 12.50%, 3/15/15......................................... 119
294 12.50%, 4/15/15......................................... 341
111 12.50%, 5/15/15......................................... 129
119 12.50%, 5/20/15......................................... 135
54 12.50%, 6/15/15......................................... 62
61 12.50%, 6/20/15......................................... 70
33 12.50%, 7/15/15......................................... 38
60 12.50%, 7/20/15......................................... 68
17 12.50%, 8/15/15......................................... 20
53 12.50%, 9/20/15......................................... 60
94 12.50%, 10/15/15........................................ 109
31 12.50%, 11/20/15........................................ 36
87 12.50%, 1/20/16......................................... 98
16 12.50%, 11/15/16........................................ 19
6 12.75%, 2/15/00......................................... 6
115 12.75%, 9/20/13......................................... 130
10 12.75%, 11/15/13........................................ 11
111 12.75%, 11/20/13........................................ 127
13 12.75%, 12/20/13........................................ 15
1 12.75%, 2/20/14......................................... 1
48 12.75%, 3/20/14......................................... 54
55 12.75%, 7/15/14......................................... 61
3 12.75%, 8/20/14......................................... 4
7 12.75%, 9/20/14......................................... 8
3 12.75%, 10/20/14........................................ 4
98 12.75%, 12/20/14........................................ 112
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........................................ 36
158 13.00%, 12/15/10........................................ 178
126 13.00%, 1/15/11......................................... 149
296 13.00%, 2/15/11......................................... 349
123 13.00%, 3/15/11......................................... 145
386 13.00%, 4/15/11......................................... 455
7 13.00%, 5/15/11......................................... 8
5 13.00%, 8/15/11......................................... 6
2 13.00%, 10/15/11........................................ 2
140 13.00%, 1/15/12......................................... 165
45 13.00%, 2/15/12......................................... 53
14 13.00%, 5/15/12......................................... 16
7 13.00%, 6/15/12......................................... 8
18 13.00%, 7/15/12......................................... 21
1 13.00%, 8/15/12......................................... 1
13 13.00%, 9/15/12......................................... 15
50 13.00%, 10/15/12........................................ 59
90 13.00%, 11/15/12........................................ 106
103 13.00%, 12/15/12........................................ 121
203 13.00%, 9/15/13......................................... 239
10 13.00%, 9/20/13......................................... 12
243 13.00%, 10/15/13........................................ 286
88 13.00%, 6/15/14......................................... 104
186 13.00%, 7/15/14......................................... 217
</TABLE>
Continued
80
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
264 13.00%, 8/15/14.........................................$ 303
88 13.00%, 9/15/14......................................... 102
348 13.00%, 10/15/14........................................ 399
97 13.00%, 10/20/14........................................ 110
62 13.00%, 11/15/14........................................ 71
115 13.00%, 12/15/14........................................ 136
151 13.00%, 12/20/14........................................ 172
84 13.00%, 1/15/15......................................... 100
47 13.00%, 3/15/15......................................... 55
116 13.00%, 6/15/15......................................... 137
20 13.00%, 6/20/15......................................... 23
22 13.00%, 8/20/15......................................... 26
3 13.25%, 1/20/15......................................... 4
436 13.50%, 5/15/10......................................... 520
128 13.50%, 6/15/10......................................... 152
181 13.50%, 7/15/10......................................... 217
31 13.50%, 8/15/10......................................... 37
48 13.50%, 9/15/10......................................... 57
51 13.50%, 1/15/11......................................... 57
107 13.50%, 4/15/11......................................... 128
577 13.50%, 5/15/11......................................... 689
13 13.50%, 8/15/11......................................... 16
14 13.50%, 9/15/11......................................... 16
19 13.50%, 2/15/12......................................... 23
5 13.50%, 3/15/12......................................... 6
206 13.50%, 10/15/12........................................ 246
331 13.50%, 11/15/12........................................ 396
38 13.50%, 12/15/12........................................ 45
186 13.50%, 7/15/14......................................... 221
3 13.50%, 7/20/14......................................... 3
545 13.50%, 8/15/14......................................... 651
6 13.50%, 8/20/14......................................... 7
727 13.50%, 9/15/14......................................... 869
127 13.50%, 9/20/14......................................... 145
282 13.50%, 10/15/14........................................ 336
104 13.50%, 10/20/14........................................ 119
137 13.50%, 11/15/14........................................ 164
82 13.50%, 11/20/14........................................ 94
39 13.50%, 12/15/14........................................ 46
12 13.50%, 12/20/14........................................ 13
25 13.50%, 1/15/15......................................... 30
21 13.50%, 1/20/15......................................... 24
48 13.50%, 2/15/15......................................... 57
16 13.50%, 3/20/15......................................... 18
29 13.50%, 4/15/15......................................... 34
76 13.50%, 4/20/15......................................... 87
61 13.50%, 5/20/15......................................... 70
19 13.50%, 6/20/15......................................... 21
318 14.00%, 5/15/11......................................... 385
1,911 14.00%, 6/15/11......................................... 2,312
305 14.00%, 7/15/11......................................... 369
23 14.00%, 9/15/11......................................... 28
69 14.00%, 1/15/12......................................... 83
38 14.00%, 2/15/12......................................... 46
2 14.00%, 3/15/12......................................... 3
11 14.00%, 4/15/12......................................... 14
21 14.00%, 5/15/12......................................... 25
76 14.00%, 7/15/12......................................... 92
50 14.00%, 8/15/12......................................... 60
114 14.00%, 9/15/12......................................... 138
108 14.00%, 10/15/12........................................ 130
97 14.00%, 7/15/14......................................... 117
154 14.00%, 8/15/14......................................... 187
274 14.00%, 9/15/14......................................... 332
8 14.00%, 9/20/14......................................... 10
308 14.00%, 10/15/14........................................ 372
102 14.00%, 11/15/14........................................ 123
144 14.00%, 12/15/14........................................ 174
6 14.00%, 1/20/15......................................... 7
201 14.00%, 2/15/15......................................... 243
3 14.25%, 10/15/97........................................ 4
31 14.25%, 11/15/97........................................ 33
6 14.25%, 9/15/99......................................... 6
23 14.50%, 9/15/12......................................... 29
65 14.50%, 10/15/12........................................ 79
47 14.50%, 8/15/14......................................... 57
1 14.75%, 10/15/96........................................ 1
1 14.75%, 11/15/96........................................ 1
2 14.75%, 4/15/97......................................... 2
3 14.75%, 5/15/97......................................... 3
109 15.00%, 6/15/11......................................... 136
718 15.00%, 7/15/11......................................... 892
374 15.00%, 8/15/11......................................... 464
715 15.00%, 9/15/11......................................... 889
109 15.00%, 10/15/11........................................ 135
30 15.00%, 11/15/11........................................ 37
170 15.00%, 12/15/11........................................ 209
194 15.00%, 1/15/12......................................... 241
636 15.00%, 2/15/12......................................... 785
264 15.00%, 3/15/12......................................... 327
339 15.00%, 4/15/12......................................... 419
812 15.00%, 5/15/12......................................... 1,009
649 15.00%, 6/15/12......................................... 806
741 15.00%, 7/15/12......................................... 920
1,189 15.00%, 8/15/12......................................... 1,475
1,914 15.00%, 9/15/12......................................... 2,375
107 15.00%, 10/15/12........................................ 132
195 15.00%, 11/15/12........................................ 242
133 15.00%, 12/15/12........................................ 166
24 15.00%, 1/15/13......................................... 30
24 15.00%, 2/15/13......................................... 30
</TABLE>
Continued
81
<PAGE>
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ----------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
21 15.00%, 4/15/13....................................... $ 26
2 15.25%, 11/15/96...................................... 2
2 15.25%, 12/15/96...................................... 2
9 15.25%, 2/15/97....................................... 10
11 15.25%, 3/15/97....................................... 12
6 15.75%, 11/15/96...................................... 7
3 15.75%, 12/15/96...................................... 4
1 15.75%, 2/15/97....................................... 1
10 15.75%, 3/15/97....................................... 11
3 15.75%, 4/15/97....................................... 3
13 15.75%, 5/15/97....................................... 14
9 15.75%, 12/15/11...................................... 10
70 16.00%, 10/15/11...................................... 84
70 16.00%, 4/15/12....................................... 84
122 17.00%, 11/15/11...................................... 146
Mdc Asset Investors Trust (0.5%):
1,000 7.00%, 2/20/19........................................ 977
-------
Total U.S. Government Agencies...................................... 158,260
-------
U.S. Treasury Notes (18.6%):
20,300 7.13%, 2/29/00........................................ $ 20,764
15,735 7.88%, 11/15/04....................................... 16,914
-------
Total U.S. Treasury Notes 37,678
-------
Total Investments, at value 199,082
-------
Total (Cost-- $198,535)(a) $199,082
=======
</TABLE>
- ---------------
Percentages indicated are based on net assets of $202,491.
(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 $3. Cost for federal income tax purposes differs from value
by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........... $ 2,841
Unrealized depreciation........... (2,297)
-------
Net unrealized depreciation....... $ 544
=======
</TABLE>
See notes to financial statements.
82
<PAGE>
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- --------------------------------------------- ----------
<S> <C> <C>
Asset Backed Bonds (4.0%):
5,000 AT&T Universal Card Master Trust, 5.63%,
6/18/01* ................................... $ 5,000
18,000 Money Store, 5.82%, 10/15/27* ............... 18,000
---------
23,000
---------
Total Asset Backed Bonds 23,000
---------
Commercial Paper (1.7%):
Automotive (1.7%):
10,000 General Motors, 0.00%, 1/21/97 .............. 9,679
---------
Total Commercial Paper 9,679
---------
Corporate Bonds (30.9%):
Banking (3.3%):
10,000 AAB Global Bond, 7.55%, 6/28/06 ............. 10,138
5,500 Continental Bank N.a., 11.25%, 7/1/01 ....... 5,919
5,000 First Federal Michigan, 0.00%, 2/26/05 ...... 2,663
---------
18,720
---------
Financial And Insurance (0.9%):
5,000 GMAC, 7.13%, 5/1/03 ......................... 5,013
---------
Financial Services (14.4%):
7,000 AT&T Capital Corp., 6.49%, 5/17/99........... 6,921
6,700 BBV International Finance, 6.88%, 10/27/05... 6,393
10,000 Fleet Financial Group, 7.13%, 4/15/06........ 9,763
3,000 Ford Credit Europe, 6.88%, 10/10/97.......... 3,012
3,940 Greentree Financial Corp., 7.25%, 7/15/05,
CMO........................................ 3,930
11,000 Greentree Financial Corp., 7.20%, 4/15/19.... 10,950
2,974 Greentree Securitized Net Interest Margin
Trust, 6.90%, 2/15/04...................... 2,945
20,000 Morgan Stanley, 5.75%, 12/31/99*............. 20,000
6,000 Nationwide Contingent Surplus Notes Trust,
9.88%, 2/15/25**........................... 6,555
5,504 Regions Financial Corp., 7.75%, 9/15/24...... 5,724
6,500 Structured Asset Securities Corp., 5.94%,
2/25/28.................................... 6,265
----------
82,458
----------
Gas And Electric Utility (0.6%):
4,150 Tenaga Nasional, 7.50%, 1/15/20**............ 3,719
----------
Homebuilding & Related Financial Services (1.4%):
8,470 EQCC Home Equity Loan Trust, 5.73%,
12/15/08, CMO.............................. 8,148
----------
Import/Export (1.7%):
10,000 Private Export Funding Corp., 6.62%,
10/1/05.................................... 9,700
---------
Industrial Goods And Services (5.3%):
6,000 Auburn Hills Trust, 12.00%, 5/1/20........... 8,670
5,000 ITT Corp., 7.38%, 11/15/15................... 4,713
10,000 Oslo Seismic Service, 8.28%, 6/1/11**........ 10,146
6,000 Petro-Canada, 9.25%, 10/15/21................ 6,945
---------
30,474
---------
Insurance (1.2%):
7,000 Prudential Insurance, 7.65%, 7/1/07**........ 6,939
---------
Retail Stores (1.5%):
8,500 Sears, 7.12%, 6/26/01........................ 8,574
</TABLE> ---------
Continued
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- --------------------------------------------- ----------
<S> <C> <C>
Corporate Bonds, continued:
Telecommunications (0.6%):
3,488 NYCTL 1996 - 1 Trust Class C, 7.11%,
2/25/01** ................................. 3,486
---------
Total Corporate Bonds 177,231
---------
Foreign (6.5%):
Aerospace (1.8%):
10,000 Province Of Ontario, 7.75%, 6/4/02........... 10,413
---------
Banking (3.0%):
7,000 Japan Development Bank, 8.38%, 2/15/01....... 7,457
10,000 Skandinaviska Enskilda, 6.63%, 3/29/49*...... 9,548
---------
17,005
---------
Foreign Governments (0.9%):
5,000 Quebec Province, 9.00%, 4/1/16............... 5,406
---------
Telecommunications (0.8%):
5,000 Cable And Wireless Plc, 6.50%, 12/16/03...... 4,712
---------
Total Foreign 37,536
---------
Medium Term Notes (0.9%):
Industrial Goods And Services (0.9%):
5,000 Ford Motor Credit Corp., 6.65%, 5/22/00...... 4,969
---------
Total Medium Term Notes 4,969
---------
Private Placement (4.7%):
Foreign Banking (2.9%):
7,000 Bangkok Bank Public Co., 8.25%, 3/15/16**.... 6,816
10,000 General Finance Luxembourg, 6.12%,
5/29/49.................................... 10,000
---------
16,816
---------
Industrial Goods And Sevices (1.8%):
5,000 Empressa Electric Guacolda, 7.95%,
4/30/03**.................................. 4,950
5,000 Mayne Nickless, 8.65%, 4/15/02**............. 5,350
---------
10,300
---------
Total Private Placement 27,116
---------
U.S. Government Agencies (24.9%):
Federal Home Loan Mortgage Corp.
2,105 8.25%, 8/15/19, Series 1064-D................ 2,123
2,263 9.00%, 5/1/20 , Pool #A01002................. 2,352
4,225 9.50%, 10/1/20 , Pool #A00873................ 4,490
Federal National Mortgage Assoc.
2,200 7.40%, 7/1/04................................ 2,257
2,623 9.00%, 8/1/09, Pool #84251................... 2,727
5,134 8.25%, 7/1/17, Pool #124439.................. 5,215
6,102 9.00%, 7/25/20, Series 90-84................. 6,352
8,400 6.70%, 8/25/20, Series 1992-217.............. 7,987
577 7.00%, 9/1/23, Pool #229268.................. 555
560 7.00%, 10/1/23, Pool #229342................. 539
702 7.00%, 10/1/23, Pool #238554................. 675
786 7.00%, 10/1/23, Pool #240769................. 756
355 7.00%, 10/1/23, Pool #241684................. 341
277 7.00%, 11/1/23, Pool #244982................. 266
12,000 8.00%, 11/1/23, Pool #190251................. 12,087
324 7.00%, 1/1/24, Pool #249967.................. 312
</TABLE>
83
<PAGE>
================================================================================
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- --------------------------------------------- ----------
<S> <C> <C>
U.S. Government Agencies, continued:
Federal National Mortgage Assoc., continued:
596 7.00%, 2/1/24, Pool #190257................ $ 574
369 7.00%, 2/1/24, Pool #268750................ 355
36 7.00%, 2/1/24, Pool #273020................ 35
227 7.00%, 2/1/24, Pool #274467................ 218
604 7.00%, 3/1/24, Pool #266984................ 581
172 7.00%, 3/1/24, Pool #271403................ 165
189 7.00%, 3/1/24, Pool #278037................ 182
161 7.00%, 5/1/24, Pool #249467................ 155
482 7.00%, 5/1/24, Pool #267955................ 464
246 7.00%, 5/1/24, Pool #269593................ 237
455 7.00%, 5/1/24, Pool #274673................ 437
230 7.00%, 5/1/24, Pool #276234................ 221
268 7.00%, 5/1/24, Pool #280200................ 258
272 7.00%, 5/1/24, Pool #280357................ 262
260 7.00%, 5/1/24, Pool #281700................ 250
238 7.00%, 5/1/24, Pool #281702................ 228
36 7.00%, 5/1/24, Pool #282656................ 35
247 7.00%, 5/1/24, Pool #282381................ 237
197 7.00%, 5/1/24, Pool #282711................ 189
72 7.00%, 5/1/24, Pool #282879................ 69
177 7.00%, 5/1/24, Pool #284491................ 170
514 7.00%, 5/1/24, Pool #284350................ 495
307 7.00%, 6/1/24, Pool #250059................ 295
150 7.00%, 6/1/24, Pool #281864................ 145
618 7.00%, 6/1/24, Pool #282980................ 594
465 7.00%, 6/1/24, Pool #285343................ 448
650 7.00%, 6/1/24, Pool #285147................ 625
31 7.00%, 6/1/24, Pool #285431................ 30
389 7.00%, 6/1/24, Pool #286619................ 374
343 7.00%, 6/1/24, Pool #286679................ 330
482 7.00%, 6/1/24, Pool #287210................ 463
154 7.00%, 6/1/24, Pool #289221................ 149
613 7.00%, 7/1/24, Pool #284442................ 589
618 7.00%, 7/1/24, Pool #283954................ 595
370 7.00%, 7/1/24, Pool #291753................ 356
333 7.00%, 11/1/24, Pool #303223............... 320
520 7.00%, 12/1/24, Pool #299441............... 501
9,748 9.50%, 1/1/25, Pool #250210................ 10,354
</TABLE>
Principal Security Market
Amount Description Value
- --------- --------------------------------------------- ----------
<TABLE>
<CAPTION>
U.S. Government Agencies, continued:
Government National Mortgage Assoc.
<S> <C> <C>
1,905 8.00%, 6/15/17, Pool #215187................ 1,922
9,132 7.50%, 4/15/23, Pool # 354563............... 9,016
3,645 6.50%, 9/15/23, Pool # 358419............... 3,405
4,778 6.50%, 12/15/23, Pool # 197484.............. 4,461
9,249 6.50%, 12/15/23, Pool # 354714.............. 8,652
35,313 7.50%, 8/15/25, Pool #780213................ 34,938
Lehman FHA - Title 1 Loan Trust
9,500 6.78%, 4/25/08............................... 9,482
---------
Total U.S. Government Agencies 142,895
---------
U.S. Treasury Bills (6.8%):
40,000 12/12/96(b).................................. 39,040
---------
Total U.S. Treasury Bills 39,040
---------
U.S. Treasury Bonds (5.7%):
14,500 9.25%, 2/15/16............................... 17,941
1,900 7.25%, 8/15/22............................... 1,948
13,250 6.88%, 8/15/25(b)............................ 13,117
---------
Total U.S. Treasury Bonds 33,006
---------
U.S. Treasury Notes (12.5%):
9,200 7.25%, 2/15/98............................... 9,367
5,900 6.38%, 5/15/99............................... 5,911
3,000 7.75%, 12/31/99.............................. 3,127
1,200 6.25%, 4/30/01............................... 1,188
8,700 6.25%, 2/15/03(b)............................ 8,550
10,000 5.75%, 8/15/03(b)............................ 9,521
16,800 7.88%, 11/15/04(b)........................... 18,059
16,100 6.63%, 5/15/06............................... 16,266
---------
Total U.S. Treasury Notes 71,989
---------
Total Investments, at value 566,461
---------
Repurchase Agreements (0.2%):
970 Goldman Sachs, 5.63%, 7/1/96
(Collateralized by 1,007 Federal Mortgage
Assoc., 7.50%, 6/1/26, market value--
$989)....................................... 970
---------
Total Repurchase Agreements 970
---------
Total (Cost--$569,035)(a) $ 567,431
=========
</TABLE>
Percentages indicated are based on net assets of $574,147.
(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 $21. Cost for federal income tax purposes differs from value
by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ................. $ 2,497
Unrealized depreciation ................. (4,122)
-------
Net unrealized depreciation ............. $(1,625)
=======
</TABLE>
(b) All or a portion of this security has been loaned at June 30, 1996.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. 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 at June 30, 1996.
** Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Securities Act of 1933.
CMO--Collateralized Mortgage Obligation.
See notes to financial statements.
84
<PAGE>
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds (95.8%):
Arizona (2.8%):
2,000 Phoenix, 6.00%, 7/1/01..................................................................... $ 2,118
1,680 Salt River Project, 7.40%, 1/1/03.......................................................... 1,779
--------
3,897
--------
California (1.6%):
1,760 Los Angeles Convention & Exhibit Center, 9.00%, 12/1/05.................................... 2,268
--------
Colorado (2.4%):
1,000 Douglas County, MBIA, 8.00%, 12/15/09...................................................... 1,245
1,000 Metro Wastewater Reclamation, Series B, 6.75%, 4/1/01...................................... 1,088
1,000 Platte River Power Authority, Series B, 5.50%, 6/1/02...................................... 1,039
--------
3,372
--------
Connecticut (1.4%):
1,770 Connecticut Clean Water Fund, 6.38%, 6/1/05................................................ 1,949
--------
Delaware (0.8%):
1,000 Delaware Transportation Authority, 7.80%, 7/1/04........................................... 1,194
--------
Florida (2.8%):
135 Florida Board of Education Capital Outlay, 9.13%, 6/1/14................................... 186
2,000 Florida Board of Education, Series G, 6.90%, 5/1/03........................................ 2,235
1,430 Gainesville Utility Systems, Series A, 5.75%, 10/1/09...................................... 1,480
--------
3,901
--------
Georgia (4.0%):
1,200 Fayette County School District, G.O., 6.25%, 3/1/04........................................ 1,307
2,000 Georgia G.O., Series B, 7.20%, 3/1/01...................................................... 2,218
2,000 Georgia, Series B, 6.00%, 3/1/04........................................................... 2,148
--------
5,673
--------
Guam (1.1%):
1,505 Guam Government Highway Revenue, Series A, 5.90%, 5/1/02................................... 1,607
--------
Idaho (1.3%):
1,560 Canyon County School District, G.O., MBIA, 8.13%, 7/30/03.................................. 1,874
--------
Kansas (0.8%):
1,000 Department Of Transportation & Highway, 7.25%, 3/1/04...................................... 1,155
--------
Kentucky (1.8%):
2,500 State Turnpike Authority, 5.50%, 7/1/07.................................................... 2,555
--------
Maryland (9.1%):
1,750 Anne Arundel County, G.O., 6.90%, 1/15/99.................................................. 1,855
1,000 Baltimore County, 5.70%, 7/1/99............................................................ 1,038
1,000 Baltimore County, 6.70%, 7/1/16............................................................ 1,055
2,000 Maryland, 7.00%, 1/1/98, Callable on 1/1/98 @ 101.25....................................... 2,108
5,250 Maryland, Series 3, 6.60%, 7/15/00......................................................... 5,649
1,000 University Of Maryland Auxiliary Facility & Tuition, 7.00%, 10/1/99........................ 1,075
--------
12,780
--------
Massachusetts (2.3%):
1,000 Harvard University State Health, Series N, 6.25%, 4/1/20................................... 1,068
1,000 Massachusetts Bay Transport Authority, Semi-Annual G.O., Series A, 7.00%, 3/1/08........... 1,131
1,000 Massachusetts Strategic Series C, 6.00%, 8/1/09............................................ 1,060
--------
3,259
--------
Michigan (3.7%):
1,000 Dearborn School District, 8.38%, 5/1/00, Prerefunded 5/1/00 @ 102.......................... 1,143
</TABLE>
Continued
85
<PAGE>
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds, continued:
Michigan, continued:
1,250 Detroit Water Supply Systems, Series B, MBIA, 5.55%, 7/1/12................................ $ 1,241
1,500 Michigan Strategic Fund, 7.10%, 2/1/06..................................................... 1,716
1,000 Western Michigan University, Series A, 6.50%, 7/15/01, Prerefunded 7/15/01 @ 102........... 1,094
--------
5,194
--------
Missouri (3.0%):
1,000 Health & Educational Facility, 6.88%, 2/15/21.............................................. 1,105
1,000 Missouri, G.O., Series A, 6.00%, 4/1/02.................................................... 1,066
2,000 Sikeston, 6.00%, 6/1/13.................................................................... 2,085
--------
4,256
--------
Montana (1.5%):
1,000 Department of Transportation & Highway, 5.15%, 7/1/04...................................... 1,010
1,010 Montana, G.O., Series A, 6.00%, 8/1/02..................................................... 1,077
--------
2,087
--------
Nevada (2.4%):
2,000 Clark County Sanitation District, Series A, 6.75%, 7/1/02, Prerefunded 7/1/02 @ 101........ 2,205
1,100 Las Vegas Valley, G.O., 7.00%, 8/1/00, Callable 8/1/00 @ 102, Prerefunded 8/1/00 @ 102..... 1,211
--------
3,416
--------
New Hampshire (3.8%):
5,000 Turnpike System, 8.38%, 11/1/97, Prerefunded 11/1/97 @ 102................................. 5,374
--------
New Mexico (1.5%):
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05................................................... 1,071
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07................................................... 1,066
--------
2,137
--------
New York (6.1%):
1,050 Dormitory Authority, Series A, 5.75%, 7/1/10............................................... 1,087
2,000 New York, 8.00%, 4/1/03.................................................................... 2,352
2,500 North Hempstead, G.O., Series B, 6.00%, 4/1/05............................................. 2,680
2,200 Westchester County, 6.70%, 11/1/05......................................................... 2,488
--------
8,607
--------
North Carolina (4.8%):
5,000 North Carolina Eastern Municipal Power, Series A, 6.50%, 1/1/18............................ 5,493
1,200 Winston Salem, G.O., 6.50%, 6/1/99......................................................... 1,271
--------
6,764
--------
Ohio (3.4%):
1,230 Cleveland School District, 8.00%, 12/1/01, Callable 12/1/97 @ 100.......................... 1,419
1,000 Franklin County, G.O., 6.80%, 12/1/00, Prerefunded 12/1/00 @ 102........................... 1,104
2,025 Hamilton City Electric, Series B, 8.00%, 10/15/98.......................................... 2,230
--------
4,753
--------
Oklahoma (3.9%):
2,250 Grand River Dam Authority, FSA, 5.75%, 6/1/08.............................................. 2,332
1,000 Grand River Dam Authority, Series B, 6.25%, 6/1/11......................................... 1,081
1,975 Oklahoma Municipal Power Authority, MBIA, 5.88%, 1/1/15.................................... 2,061
--------
5,474
--------
Oregon (2.9%):
1,000 Deschutes & Jefferson School District, G.O., 6.00%, 6/1/03................................. 1,066
1,435 Lane County School District Number, G.O., 6.00%, 1/1/04.................................... 1,532
</TABLE>
Continued
86
<PAGE>
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds, continued:
Oregon, continued:
1,220 Washington County School District, 7.80%, 6/1/04........................................... $ 1,440
--------
4,038
Pennsylvania (0.8%):
1,000 Pennsylvania Industrial Development Authority, 7.00%, 7/1/06............................... 1,129
--------
Puerto Rico (9.3%):
1,000 Puerto Rico - Series Y, 6.25%, 7/1/12...................................................... 1,083
1,000 Puerto Rico - Series Z, 6.25%, 7/1/15...................................................... 1,073
5,000 Puerto Rico Electric Power Authority, 6.50%, 7/1/06........................................ 5,530
1,000 Puerto Rico Electric Power Authority, FSA, 6.00%, 7/1/04................................... 1,071
2,000 Puerto Rico Electric Power Authority, MBIA, Series W, 6.50%, 7/1/05........................ 2,210
1,000 Puerto Rico, MBIA, 6.50%, 7/1/04........................................................... 1,109
1,000 University Of Puerto Rico, 6.25%, 6/1/07................................................... 1,089
--------
13,165
--------
South Carolina (1.0%):
1,250 Charleston County, MBIA, 6.25%, 1/1/07..................................................... 1,352
--------
South Dakota (0.8%):
1,000 Heartland Consumer Power District, 6.80%, 1/1/02........................................... 1,090
--------
Tennessee (4.3%):
1,500 Memphis Electrical Systems, 6.00%, 1/1/06.................................................. 1,588
1,000 Metropolitan Government Nashville & Davidson, Series B, 5.50%, 5/15/02..................... 1,035
2,000 Tennessee State, G.O., 6.00%, 5/1/05....................................................... 2,148
1,250 Tennessee State, G.O., Series A, 6.10%, 6/1/00............................................ 1,319
--------
6,090
--------
Texas (4.5%):
1,000 Dallas, 6.13%, 2/15/07..................................................................... 1,065
5,000 Texas, 6.00%, 10/1/08...................................................................... 5,312
--------
6,377
--------
Vermont (1.5%):
2,000 Burlington Electric, MBIA, 6.25%, 7/1/11................................................... 2,143
--------
Virgin Islands (0.8%):
1,000 Virgin Islands Public Finance Authority, 7.30%, 10/1/18.................................... 1,208
--------
Virginia (0.8%):
1,000 Richmond Utility, 8.00%, 1/15/98, Prerefunded 1/15/98 @ 102................................ 1,076
--------
Washington (2.1%):
1,000 King County, 6.10%, 12/1/01................................................................ 1,006
1,000 Seattle, G.O., 7.00%, 3/1/02............................................................... 1,111
750 Washington Public Power, 13.50%, 7/1/97, Callable 7/1/97 @ 100, Prerefunded 7/1/97 @ 100... 819
--------
2,936
--------
Wisconsin (0.7%):
1,000 Milwaukee Metropolitan Sewer District, G.O., 6.60%, 10/1/99................................ 1,061
--------
Total Municipal Bonds................................................................................. 135,211
--------
</TABLE>
Continued
87
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1996
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Alternative Minimum Tax Paper (2.3%):
Delaware (2.3%):
3,200 Delaware State Economic Development Authority, 3.80%, 10/1/29*............................. $ 3,200
---------
Total Alternative Minimum Tax Paper 3,200
---------
Total (Cost--$136,462) (a) $ 138,411
=========
- ----------------
Percentages indicated are based on net assets of $141,097.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation.................... $ 2,630
Unrealized depreciation.................... (681)
--------
Net unrealized appreciation................ $ 1,949
========
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or
liquidity agreements. 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 at June 30, 1996.
</TABLE>
GO--General Obligation.
MBIA--Insured by Municipal Bond Insurance Assoc.
FSA--Insured by Financial Security Assurance.
See notes to financial statements.
88
<PAGE>
<TABLE>
<CAPTION>
Schedule of Portfolio Investments
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30 ,1996
Michigan Municipal Bond Fund
(Amounts in Thousands)
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------------------------------------------------------------------------------ --------
Municipal Bonds (97.2%):
Michigan (88.2%):
<C> <S> <C>
1,850 Avondale School District, 5.80%, 5/1/07, Callable 5/1/02 @ 102..........................................$ 1,901
1,910 Beaverton Rural, GO, 5.00%, 5/1/15...................................................................... 1,740
1,380 Byron Center, Public Schools, GO, MBIA, 8.25%, 5/1/08................................................... 1,730
1,380 Byron Center, Public Schools, GO, 8.25%, 5/1/09......................................................... 1,728
1,500 Chippewa Valley School District, 8.10%, 5/1/99.......................................................... 1,643
2,375 Chippewa Valley School District, GO, 7.80%, 5/1/01...................................................... 2,684
1,000 Chippewa Valley School District, 7.00%, 5/1/11, Prerefunded 5/1/02 @ 102................................ 1,110
1,100 Dearborn School District, 8.38%, 5/1/00, Prerefunded 5/1/00 @ 102....................................... 1,257
1,050 Dearborn School District, GO, 5.25%, 5/1/07, Callable 5/1/03 @ 101.5.................................... 1,047
300 Delta County, Economic Development Corp., Series F, 3.60%, 12/1/13, LOC: Bank of Nova Scotia*........... 300
1,275 Detroit Sewer, 6.20%, 7/1/02, Callable 7/1/01 @ 102..................................................... 1,380
2,000 Detroit Water, 7.88%, 7/1/98, Prerefunded 7/1/98 @ 102.................................................. 2,180
2,000 Detroit, General Obligation Revenue Bonds, GO, AMBAC, 5.25%, 5/1/08..................................... 1,970
1,000 Detroit, Sewage Disposal Revenue, 6.00%, 7/1/10......................................................... 1,050
1,000 Detroit, Sewage Disposal Revenue, Series B, 6.00%, 7/1/09............................................... 1,053
1,000 Detroit, Water, FGIC, 6.50%, 7/1/15.................................................................... 1,101
2,000 Detroit, Water Supply System, 5.40%, 7/1/10............................................................ 1,970
1,000 Detroit, Water Supply Systems, Series B, MBIA, 5.55%, 7/1/12............................................ 993
1,125 Goodrich, Area School District, GO, MBIA, 7.65%, 5/1/11, Callable 5/1/05 @ 102.......................... 1,320
1,000 Grand Haven, Electric, MBIA, 5.20%, 7/1/06.............................................................. 995
1,235 Grand Haven, Public Schools, GO, 7.00%, 5/1/07, Callable 5/1/03 @ 102................................... 1,417
1,250 Grand Ledge, Public School District, GO, MBIA, 5.45%, 5/1/11............................................ 1,230
1,200 Grand Rapids, GO, 6.50%, 5/1/00......................................................................... 1,278
1,925 Grand Rapids School District, GO, 5.00%, 5/1/06, Callable 5/1/01 @ 102.................................. 1,879
1,000 Hartland School District, GO, 5.35%, 5/1/03............................................................. 1,035
1,750 Holland Electric, 6.50%, 7/1/99, Prerefunded 7/1/99 @ 100............................................... 1,848
1,875 Holland Electric, 6.50%, 7/1/99......................................................................... 1,980
1,570 Holland Electric, 6.25%, 7/1/01......................................................................... 1,668
600 Holt School District, GO, 8.75%, 5/1/00................................................................. 684
600 Holt School District, GO, 8.75%, 5/1/01................................................................. 702
2,500 Huron Valley School District, GO, 7.10%, 5/1/08, Callable 5/1/01 @ 102.................................. 2,784
1,650 Kalamazoo, GO, 6.20%, 10/1/06, Callable 10/1/02 @ 101.5................................................. 1,747
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable 7/1/99 @ 100...................................... 2,065
1,015 Kalamazoo Hospital Authority, Bronson Hospital, 5.63%, 5/15/01.......................................... 1,047
1,000 Kalamazoo Hospital Finance Authority, 5.63%, 7/1/00..................................................... 1,036
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, FGIC, 6.13%, 7/1/07....................... 2,093
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, Series A, 6.00%, 6/1/03................... 2,115
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital, 5.88%, 5/15/03.................................. 1,505
1,500 Kalamazoo, Michigan Hospital Authority, Series A, FGIC, 6.25%, 6/1/14................................... 1,584
1,000 Kalamazoo, Michigan Public Library, 5.20%, 5/1/11....................................................... 958
1,300 Kenowa Hills Michigan, GO, 5.50%, 5/1/04................................................................ 1,333
1,120 Kent County, 8.00%, 12/1/98............................................................................. 1,218
1,000 Kent County Hospital Authority, Butterworth Hospital, 7.25%, 1/15/13, Prerefunded 1/15/00 @ 102......... 1,101
5,000 Kent County Hospital Authority, Butterworth Hospital, Series A, 7.25%, 1/15/13.......................... 5,774
500 Kentwood Public Schools, GO, 7.15%, 5/1/99.............................................................. 544
1,000 Kentwood School District, GO, 7.15%, 5/1/99, Prerefunded 5/1/99 @ 102................................... 1,089
1,000 Kentwood School District, GO, 5.90%, 5/1/04, Prerefunded 5/1/02 @ 102................................... 1,055
2,000 Lake Orion, County School District, GO, 7.00%, 5/1/05, Callable 5/1/5 @ 101............................. 2,288
2,025 Lanse Creuse Public Schools, 6.00%, 5/1/98.............................................................. 2,088
1,000 Lansing Building Authority, 6.00%, 6/1/04............................................................... 1,063
</TABLE>
Continued
89
<PAGE>
<TABLE>
<CAPTION>
Schedule of Portfolio Investments, continued
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30,1996
Michigan Mutual Bond Fund
(Amounts in Thousands)
Shares
or
Principal Security Market
Amount Description Value
- -------- ----------------------------------------------------------------------------------------------------------- --------
Municipal Bonds, continued:
Michigan, continued:
<S> <C> <C>
2,000 Lansing School District, GO, 6.88%, 5/1/09, Callable 5/1/05 @ 100....................................... $ 2,160
1,260 Lansing Sewage Disposal, 6.85%, 5/1/97.................................................................. 1,293
1,000 Lansing, Michigan Light, GO, 6.00%, 10/1/02............................................................. 1,059
1,000 Livonia School District, GO, 6.35%, 5/1/04, Callable 5/01/02 @ 102...................................... 1,076
1,000 Michigan, GO, 5.30%, 11/1/98............................................................................ 1,025
1,000 Michigan Building Authority, 6.25%, 10/1/00............................................................. 1,061
1,000 Michigan Building Authority, 6.10%, 10/1/01............................................................. 1,064
1,600 Michigan Comprehensive Transportation, Series B, 5.40%, 5/15/01......................................... 1,654
1,000 Michigan Housing Development Authority, Series A, 6.45%, 6/1/04, Callable 6/1/02 @ 102.................. 1,050
1,500 Michigan Municipal Bond Authority, 7.75%, 5/1/98, Prerefunded 5/1/98 @ 102.............................. 1,624
2,000 Michigan Municipal Bond Authority, 6.25%, 5/15/00....................................................... 2,120
1,000 Michigan Municipal Bond Authority, Detroit Schools State Aid, 6.70%, 11/1/99............................ 1,068
1,000 Michigan Municipal Bond Authority, Local Government Program, 6.90%, 5/1/99.............................. 1,060
2,000 Michigan Municipal Bond Authority, Transportation Fund, 7.70%, 8/1/97................................... 2,075
1,500 Michigan South Central Power Agency, 7.25%, 11/1/06, Callable 11/1/96 @ 102............................. 1,547
1,000 Michigan State, GO, 5.00%, 12/1/03...................................................................... 1,008
1,850 Michigan State Building Authority, Detroit Regional Prisons, 7.10%, 10/1/98............................. 1,966
1,020 Michigan State Building Authority, Michigan Univ. Adult General Hospital, 7.00%, 12/1/02................ 1,140
1,000 Michigan State Building Authority, Series II, 6.40%, 10/1/04, Callable 10/1/01 @ 102.................... 1,076
2,300 Michigan State Comprehensive Transportation, 6.70%, 9/1/98.............................................. 2,418
3,000 Michigan State Environmental Protection Program, GO, 5.50%, 11/1/05..................................... 3,094
2,825 Michigan State Environmental Protection Program, GO, 6.25%, 11/1/07..................................... 3,065
3,250 Michigan State Environmental Protection Program, GO, 6.25%, 11/1/12..................................... 3,498
500 Michigan State Hospital Authority, Henry Ford, 6.00%, 9/1/11............................................ 520
2,000 Michigan State Hospital Authority, Henry Ford, AMBAC, 6.00%, 9/1/12..................................... 2,080
1,135 Michigan State Hospital Finance Authority, Harper Grace Hospital, 7.13%, 5/1/09......................... 1,264
1,200 Michigan State Hospital Finance Authority, Oakwood Hospital, Series A, 5.00%, 11/1/03................... 1,200
5,000 Michigan State Hospital Finance Authority, Sisters of Mercy, MBIA, 5.38%, 8/15/14....................... 4,805
1,000 Michigan State Housing Development, 6.63%, 10/15/06, Callable 10/15/06.................................. 1,066
2,000 Michigan State Recreation Program, GO, 5.75%, 11/1/01................................................... 2,100
2,000 Michigan State South Central Power Agency, 5.80%, 11/1/05............................................... 2,098
500 Michigan State Trunk Line, 6.80%, 8/15/99, Prerefunded 8/15/99 @ 102.................................... 543
1,000 Michigan State Trunk Line, 7.00%, 8/15/17, Callable 8/15/99 @ 102....................................... 1,093
1,000 Michigan State Trunk Line, Series B-2, 5.40%, 10/1/01................................................... 1,026
1,000 Michigan State University, Series A, 5.70%, 8/15/03, Callable 8/15/02 @ 101............................. 1,043
1,800 Michigan Strategic, 3.60%, 9/1/30*...................................................................... 1,800
3,000 Michigan Strategic Fund, (Detroit Edison), 7.00%, 7/15/08............................................... 3,398
2,000 Michigan Strategic Fund, (Detroit Edison), 6.95%, 5/1/11................................................ 2,260
4,400 Michigan Strategic Fund, (Ford), 7.10%, 2/1/06.......................................................... 5,032
2,000 Michigan Strategic Fund, Series A, 2.70%, 6/15/10*...................................................... 2,000
2,075 Mona Shores School District, GO, FGIC, 6.75%, 5/1/09.................................................... 2,332
800 Monroe County, Economic Development Corp., Series CC, 3.60%, 10/1/24*................................... 800
1,000 Paw Paw Public School District, GO, FGIC, 6.50%, 5/1/09................................................. 1,096
1,000 Plymouth School District, 6.50%, 5/1/05, Callable 5/1/01 @ 101**........................................ 1,074
1,300 Plymouth-Canton, 6.55%, 5/1/08, Callable 5/1/01 @ 101................................................... 1,407
2,000 Plymouth-Canton Michigan Community School, FSA, 5.40%, 5/1/07........................................... 2,005
1,000 Rochester Community School District, 5.25%, 5/1/04...................................................... 1,019
1,000 Rochester Michigan School District, 6.50%, 5/1/08, Callable 5/1/02 @ 100................................ 1,080
2,000 Rochester School District, 6.30%, 5/1/04, Callable 5/1/02 @ 100......................................... 2,140
1,000 Rochester School District, 6.50%, 5/1/07................................................................ 1,080
</TABLE>
Continued
90
<PAGE>
<TABLE>
<CAPTION>
Schedule of Portfolio Investments, continued
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30,1996
Michigan Mutual Bond Fund
(Amounts in Thousands)
Shares
or
Principal Security Market
Amount Description Value
- -------- ----------------------------------------------------------------------------------------------------------- --------
Municipal Bonds, continued:
Michigan, continued:
<S> <C> <C>
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02 @ 102.............................................. $ 1,161
1,000 Royal Oak Hospital Authority, 7.25%, 1/1/99, Callable 1/1/99 @ 100**........................................ 1,086
1,145 Royal Oak Hospital Authority, Wm Beaumont, 7.00%, 1/1/98.................................................... 1,189
4,000 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, 7.38%, 1/1/99........................... 4,354
2,120 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, Series G, 6.00%, 11/15/02............... 2,255
1,340 State of Michigan Building Authority, Series I, 6.00%, 10/1/02.............................................. 1,419
1,000 Traverse City Public Schools, 7.00%, 5/1/01, Prerefunded 5/1/01 @ 101.5..................................... 1,106
400 Traverse City School District, 9.00%, 5/1/99................................................................ 449
1,000 Troy School District, 7.75%, 5/1/00, Callable 5/1/00 @ 102, Prerefunded 5/1/00 @ 102........................ 1,124
500 University of Michigan, 6.00%, 4/1/05....................................................................... 533
2,000 University of Michigan Hospital Revenue Bonds, 7.00%, 12/1/21, Callable 12/1/00 @ 102**..................... 2,215
2,200 University of Michigan Hospitals Series A, 3.55%, 12/1/27*.................................................. 2,200
1,000 University of Michigan Student Fees, 5.00%, 4/1/02.......................................................... 1,013
1,315 University of Michigan Student Fees - Series A, 6.00%, 4/1/06............................................... 1,399
2,000 University of Michigan Student Fees, Series B, 5.60%, 4/1/08, Callable 4/1/03 @ 102......................... 2,043
300 University of Michigan, Series A, 3.55%, 12/1/19*........................................................... 300
1,975 Utica School District, 5.60%, 5/1/05........................................................................ 2,042
1,680 Western Michigan School District., MBIA, 5.90%, 5/1/10...................................................... 1,743
1,475 Western Michigan University, Series A, 5.30%, 7/15/07, Callable 7/15/03 @ 102............................... 1,469
1,500 Western Michigan University, Series A, 5.40%, 7/15/08, Callable 7/15/03 @ 105............................... 1,494
1,000 Western Township Utilities Authority, 6.00%, 1/1/00......................................................... 1,045
1,000 Wyandotte City School District, GO, 6.90%, 5/1/01........................................................... 1,105
3,000 Wyandotte Electric Revenue, MBIA, 6.25%, 10/1/08............................................................ 3,244
--------
198,910
--------
Puerto Rico (7.3%):
<S> <C> <C>
1,000 Puerto Rico - Series Z, 6.25%, 7/1/15.......................................................................... 1,073
1,000 Puerto Rico Commonwealth, GO, 6.25%, 7/1/09.................................................................... 1,094
2,000 Puerto Rico Commonwealth, GO, 6.25%, 7/1/10.................................................................... 2,218
500 Puerto Rico Commonwealth, GO, 6.25%, 7/1/12.................................................................... 543
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority, MBIA, 6.00%, 7/1/07....................................... 1,068
1,800 Puerto Rico Commonwealth Highway, Series W, FSA, 5.50%, 7/1/13................................................. 1,793
1,250 Puerto Rico Electric Power Authority, Series W, MBIA, 6.50%, 7/1/05............................................ 1,381
1,000 Puerto Rico Electric Power Authority, Series Y, MBIA, 6.50%, 7/1/06............................................ 1,106
4,000 Puerto Rico Public Buildings Authority, FSA, 5.50%, 7/1/07..................................................... 4,084
1,000 Puerto Rico Public Buildings Authority, Series A, AMBAC, 6.25%, 7/1/15......................................... 1,071
1,000 University of Puerto Rico., 6.25%, 6/1/07...................................................................... 1,089
------
16,520
------
Virgin Islands (1.7%):
3,100 Virgin Islands Public Finance Authority, 7.30%, 10/1/18 3,743
-------
Total Municipal Bonds 219,173
-------
Alternative Minimum Tax Paper (0.5%):
Michigan (0.5%):
<S> <C> <C>
750 Wayne County Airport Revenue Bonds, 8.13%, 12/1/06 774
285 Wayne County Michigan Airport Revenue, 7.25%, 12/1/10 308
-------
1,082
-------
Total Alternative Minimum Tax Paper 1,082
-------
</TABLE>
Continued
91
<PAGE>
<TABLE>
<CAPTION>
Schedule of Portfolio Investments, continued
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
Michigan Mutual Bond Fund
(Amounts in Thousands)
Shares
or
Principal Security Market
Amount Description Value
- -------- ----------------------------------------------------------------------------------------------------------- --------
<S> <C>
Investment Companies (0.8%):
1,689 Federated Michigan Tax Free Money Market................................................................ $ 1,689
--------
Total Investment Companies 1,689
--------
Total (Cost--$215,610) (a) $221,944
--------
- --------------
Percentages indicated are based on net assets of $225,437.
</TABLE>
(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 $19. Cost for federal income tax purposes differs from value
by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..........................$ 6,992
Unrealized depreciation..........................$ (677)
-------
Net unrealized appreciation......................$ 6,315
=======
* Variable rate securities having liquidity sources through bank letters of credit or other credit and/or liquidity agreements.
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 at June 30, 1996.
</TABLE>
** Additional put and demand features exist allowing the Fund to require the
purchase of the instrument within variable time periods including daily,
weekly, monthly, or semiannually.
AMBAC--Insured by AMBAC Indemnity Corp.
FGIC--Insured by Financial Guaranty Insurance Corp.
FSA--Insured Financial Security Assurance.
GO--General Obligation.
MBIA--Insured by Municipal Bond Insurance Association.
See notes to financial statements.
92
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
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. and its
affiliates, to all accounts of correspondent banks of First of America
Bank-Michigan N.A. and to the general public. First of America Investment
Corporation ("FIC"), a wholly owned subsidiary of First of America Bank -
Michigan N.A., serves as investment adviser to the Group.
The investment objective of each of the Prime Obligations Fund, the U.S.
Government Obligations Fund, and the Treasury Fund is to seek current income
with liquidity and stability of principal. The investment objective of the
Tax-Free Fund is to seek as high a level of current interest income free
from federal income taxes as is consistent with the preservation of capital
and relative stability of principal. The investment objective of the High
Income Equity Fund is to seek current income by investing in a diversified
portfolio of high quality, dividend-paying common stocks and securities
convertible into common stocks. The investment objective of the Large
Capitalization Fund is to seek growth of capital by investing in a
diversified portfolio of common stocks and securities convertible into
common stocks of companies with large market capitalization. The investment
objective of the Equity Fund is to seek growth of capital by investing
primarily in a diversified portfolio of common stocks and securities
convertible into common stocks. The investment objective of the Small
Capitalization Fund is to seek growth of capital by investing primarily in a
diversified portfolio of common stock and securities of small to medium
sized companies. The investment objective of the International Discovery
Fund is to seek long-term growth of capital. The investment objectives of
the Balanced Fund are to seek current income, long-term capital growth and
conservation of capital. The investment objective of the Limited Maturity
Bond Fund is to seek current income as well as preservation of capital by
investing in a portfolio of high and medium grade fixed-income securities
with remaining maturities of six years or less. The investment objective of
the Intermediate Government Obligations Fund is to seek current income with
preservation of capital by investing in U.S. Government securities with
remaining maturities of twelve years or less. The investment objective of
the U.S. Government Income Fund is to provide shareholders with a high level
of current income consistent with prudent investment risk. The investment
objective of the Bond Fund is to seek current income as well as preservation
of capital by investing in a portfolio of high and medium grade fixed-income
securities. The investment objectives of the Municipal Bond Fund are to seek
current interest income which is exempt from federal income taxes as well as
preservation of capital. The investment objectives of the Michigan Municipal
Bond Fund are to seek income which is exempt from federal income tax and
Michigan state income tax when received by certain Shareholders, and to seek
preservation of capital.
The Group has issued two classes of Fund 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 Fund 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
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
Continued
93
<PAGE>
(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. The Institutional
shares are not subject to sales charges or redemption fees. 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. Effective October 11, 1995,
the Group no longer offers Investor C shares of the Municipal Bond Fund or
the Michigan Municipal Bond Fund.
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. 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 into U.S. dollars at the current exchange rate.
Purchases and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the exchange rate on the dates of the
transactions.
Continued
94
<PAGE>
================================================================================
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
The Balanced Fund and the International Discovery Fund isolate that portion
of the results of operations resulting from changes in foreign 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 also 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.
Forward Currency Contracts:
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
Continued
95
<PAGE>
================================================================================
Notes To Financial Statements, Continued
- --------------------------------------------------------------------------------
PARKSTONE GROUP OF FUNDS JUNE 30, 1996
have the right to vote securities on loan, each Fund intends to terminate
the loan and regain the right to vote it that is considered important with
respect to the investment. In the event the borrower defaults on 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.
At June 30, 1996, the following funds had loaned securities with the
following market value (amounts in thousands):
<TABLE>
<CAPTION>
Fund Market Value of Loaned Securities
-------- -------------------------------------
<S> <C>
Balanced Fund................... $ 32,422
Bond Fund....................... 110,299
U.S. Government Income Fund..... 26,085
Intermediate Government Fund.... 13,240
Limited Maturity Fund........... 9,942
</TABLE>
The loaned securities were fully collateralized with cash or securities on
deposit with the Group's custodian.
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 Large Capitalization 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 gives 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 and 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 an option is
exercised, the premium amount is added to the proceeds from selling call
options or subtracted from the cost of purchasing put options.
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
Continued
96
<PAGE>
================================================================================
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS June 30, 1996
loss carry forwards and losses. Accordingly, timing differences relating to
shareholder deferrals of certain distributions are reflected in the
components of net assets and permanent book and tax differences relating to
shareholder distributions have been reclassified to additional paid-in
capital.
Federal Income Taxes:
It is the policy of each of the Funds 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
year ended June 30, 1996 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
---------- ----------
<S> <C> <C>
High Income Equity Fund................... $ 169,566 $ 215,786
Large Capitalization Fund................. 229,113 731
Equity Fund............................... 386,591 598,119
Small Capitalization Fund................. 398,532 371,570
International Discovery Fund.............. 215,242 168,211
Balanced Fund............................. 490,934 464,690
Limited Maturity Bond Fund................ 913,467 922,769
Intermediate Government Obligations Fund.. 2,290,233 2,284,634
U.S. Government Income Fund............... 632,833 649,091
Bond Fund................................. 5,837,730 5,824,468
Municipal Bond Fund....................... 67,661 72,419
Michigan Municipal Bond Fund.............. 73,764 67,091
</TABLE>
Continued
97
<PAGE>
===============================================================================
Notes to Financial Statements, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
4. Capital Share Transactions:
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government
Obligations Fund Obligations Fund
---------------------- ----------------
Amount Shares Amount Shares
------ ------ ------ ------
For the year ended June 30, 1996:
<S> <C> <C> <C> <C>
Investor A Shares:
Shares issued..................... $ 478,221 478,221 $ 637,510 637,510
Dividends reinvested.............. 6,867 6,867 1,435 1,435
Shares redeemed................... (446,172) (446,172) (621,181) (621,181)
----------- ---------- --------- -------
Net increase (decrease)........... $ 38,916 38,916 $ 17,764 17,764
=========== ========== ========= =======
Institutional Shares:
Shares issued..................... $ 993,374 993,374 $ 454,210 454,210
Dividends reinvested.............. 28 28 64 64
Shares redeemed................... (1,037,700) (1,037,700) (474,388) (474,388)
----------- ---------- --------- -------
Net increase (decrease)........... $ (44,298) (44,298) $ (20,114) (20,114)
=========== ========== ========= =======
For the year ended June 30, 1995:
Investor A Shares:
Shares issued..................... $ 115,250 115,250 $ 408,450 408,450
Dividends reinvested.............. 4,179 4,179 1,106 1,106
Shares redeemed................... (116,477) (116,477) (412,865) (412,865)
----------- ---------- --------- -------
Net increase (decrease)........... $ 2,952 2,952 $ (3,309) (3,309)
=========== ========== ========= =======
Institutional Shares:
Shares issued..................... $ 562,626 562,626 $ 471,611 471,611
Dividends reinvested.............. 3 3 -- --
Shares redeemed................... (483,958) (483,958) (436,665) (436,665)
----------- ---------- --------- -------
Net increase...................... $ 78,671 78,671 $ 34,946 34,946
=========== ========== ========= =======
<CAPTION>
Treasury Fund Tax-Free Fund
--------------------- ------------------
Amount Shares Amount Shares
----------- ---------- --------- --------
For the year ended June 30, 1996 <C> <C> <C> <C>
Investor A Shares:
Shares issued .................... $ 1,354,172 1,354,172 $ 241,570 241,570
Dividends reinvested.............. 492 492 820 820
Shares redeemed................... (1,301,320) (1,301,320) (245,782) (245,782)
----------- --------- ------- -------
Net increase (decrease)........... $ 53,344 53,344 $ (3,392) (3,392)
=========== ========= ========= =======
Institutional Shares:
Shares issued..................... $ 648,403 648,403 $ 134,776 134,776
Dividends reinvested.............. 1 1 -- --
Shares redeemed................... (617,201) (617,201) (127,125) (127,125)
----------- -------- --------- --------
Net increase (decrease)........... $ 31,203 31,203 $ 7,651 7,651
=========== ======== ========= ========
For the year ended June 30, 1995:
Investor A Shares:
Shares issued..................... $ 944,045 944,045 $ 222,882 222,882
Dividends reinvested.............. 55 55 659 659
Shares redeemed................... (895,247) (895,247) (226,684) (226,684)
----------- -------- --------- --------
Net increase (decrease)........... $ 48,853 48,853 $ (3,143) (3,143)
=========== ======== ========= ========
Institutional Shares:
Shares issued..................... $ 337,643 337,643 $ 103,465 103,465
Dividends reinvested.............. -- -- -- --
Shares redeemed................... (221,449) (221,449) (89,425) (89,425)
----------- -------- --------- -------
Net increase...................... $ 116,194 116,194 $ 14,040 14,040
=========== ======== ========= =======
</TABLE>
Continued
98
<PAGE>
================================================================================
Notes to Financial Statements, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Capital Share Transactions, continued
(Amounts in Thousands)
<TABLE>
<CAPTION>
Large Small
High Income Capitalization Capitalization
Equity Fund Fund (a) Equity Fund Fund
------------------ ----------------- ------------------ -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Amount Shares Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------ ------ ------
For the year ended June 30, 1996:
Investor A Shares:
Shares issued .................. $ 10,168 632 $ 1,890 176 $ 43,954 2,330 $ 716,574 24,410
Dividends reinvested ........... 3,421 213 1 -- 1,731 95 11,443 425
Shares redeemed ................ (15,766) (989) (314) (29) (35,147) (1,871) (654,377) (22,140)
--------- ------ -------- ------ --------- ------- --------- -------
Net increase (decrease) ........ $ (2,177) (144) $ 1,577 147 $ 10,538 554 $ 73,640 2,695
========= ====== ======== ====== ========= ======= ========= =======
Investor B Shares:
Shares issued .................. $ 4,807 295 $ 807 75 $ 8,140 434 $ 14,435 493
Dividends reinvested ........... 342 21 -- -- 329 18 1,919 72
Shares redeemed ................ (1,279) (80) (12) (1) (799) (42) (1,598) (55)
--------- ------ -------- ------ --------- ------- --------- -------
Net increase ................... $ 3,870 236 $ 795 74 $ 7,670 410 $ 14,756 510
========= ====== ======== ====== ========= ======= ========= =======
Investor C Shares:
Shares issued .................. $ 125 7 $ 2 -- $ 940 49 $ 4,777 164
Dividends reinvested ........... 3 -- -- -- 14 1 67 3
Shares redeemed ................ (4) -- -- -- (118) (6) (181) (6)
--------- ------ -------- ------ --------- ------- --------- -------
Net increase ................... $ 124 7 $ 2 -- $ 836 44 $ 4,663 161
========= ====== ======== ====== ========= ======= ========= =======
Institutional Shares:
Shares issued .................. $ 35,336 2,196 $268,046 24,775 $ 142,068 7,574 $ 178,465 6,099
Dividends reinvested ........... 3,586 224 228 21 18,788 1,026 33,689 1,238
Shares redeemed ................ (108,373) (6,811) (4,553) (418) (365,658) (18,489) (175,262) (5,614)
--------- ------ -------- ------ --------- ------- --------- -------
Net increase (decrease)......... $ (69,451) (4,391) $263,721 24,378 $(204,802) (9,889) $ 36,892 1,723
========= ====== ======== ====== ========= ======= ========= =======
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 from December 28, 1995 (commencement of operations)
through June 30, 1996.
Continued
99
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements, continued
- ------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Capital Share Transactions, continued
(Amounts in Thousands)
<CAPTION>
International Limited Maturity
Discovery Fund Balanced Fund Bond Fund
------------------ ----------------- -----------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
For the year ended June 30, 1996:
Investor A Shares:
Shares issued.................. $ 176,176 13,523 $ 4,769 374 $ 1,949 203
Dividends reinvested........... 29 2 967 76 748 78
Shares redeemed................ (176,114) (13,499) (2,876) (225) (6,858) (713)
--------- ------- -------- ---- -------- ----
Net increase (decrease).......... $ 91 26 $ 2,860 225 $ (4,161) (432)
========= ======= ======== ==== ======== ====
Investor B Shares:
Shares issued.................. $ 3,847 300 $ 2,848 222 $ 822 86
Dividends reinvested........... -- -- 154 12 51 5
Shares redeemed................ (777) (61) (261) (20) (192) (20)
--------- ------- -------- ----- -------- -----
Net increase..................... $ 3,070 239 $ 2,741 214 $ 681 71
========= ======= ======== ===== ======== =====
Investor C Shares:
Shares issued.................. $ 399 30 $ 372 29 $ 11 1
Dividends reinvested........... 1 -- 12 1 -- --
Shares redeemed................ (45) (3) (162) (12) (1) --
--------- ------- -------- ---- -------- -----
Net increase..................... $ 355 27 $ 222 18 $ 10 1
========= ======= ======== ===== ======== =====
Institutional Shares:
Shares issued.................. $ 111,341 8,370 $ 34,675 2,705 $ 31,013 3,225
Dividends reinvested........... 414 33 5,513 435 4,061 422
Shares redeemed................ (53,166) (4,080) (25,365) (1,977) (36,944) (3,831)
--------- ------- -------- ----- -------- -----
Net increase (decrease).......... $ 58,589 4,323 $ 14,823 1,163 $ (1,870) (184)
========= ======= ======== ===== ======== =====
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 $ 38,415 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
100
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements, continued
- ---------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Capital Share Transactions, continued
(Amounts in Thousands)
Intermediate U.S.
Government Government
Obligations Fund Income Fund Bond Fund
---------------- ----------------- -----------------
Amount Shares Amount Shares Amount Shares
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
For the year ended June 30, 1996:
Investor A Shares:
Shares issued.................. $ 3,161 321 $ 11,399 1,215 $ 11,308 1,165
Dividends reinvested........... 998 101 2,138 229 848 88
Shares redeemed................ (8,204) (830) (11,274) (1,202) (9,229) (948)
-------- ---- -------- ------ -------- ------
Net increase (decrease).......... $ (4,045) (408) 2,263 242 $ 2,927 305
======== ==== ======== ====== ======== ======
Investor B Shares:
Shares issued.................. $ 1,134 115 12,980 1,387 $ 3,376 347
Dividends reinvested........... 62 6 569 61 115 12
Shares redeemed................ (287) (29) (2,129) (229) (298) (31)
-------- ----- -------- ------ -------- ------
Net increase..................... $ 909 92 11,420 1,219 $ 3,193 328
======== ===== ======== ====== ======== ======
Investor C Shares:
Shares issued.................. $ 75 7 54 7 $ 322 33
Dividends reinvested........... 2 -- 2 -- 6 1
Shares redeemed................ (4) -- (15) (2) (142) (15)
-------- ----- ------- ------ -------- ------
Net increase..................... $ 73 7 41 5 $ 186 19
======== ===== ======= ====== ======== ======
Institutional Shares:
Shares issued.................. $ 46,223 4,679 41,249 4,396 $121,608 12,536
Dividends reinvested........... 3,811 386 1,213 130 22,854 2,357
Shares redeemed................ (68,765) (6,955) (19,745) (2,105) (95,486) (9,818)
-------- ----- ------- ------ -------- -------
Net increase (decrease).......... $(18,731) (1,890) 22,717 2,421 $ 48,976 5,075
======== ===== ======= ====== ======== =======
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 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
101
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements, continued
- ------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Capital Share Transactions, continued
(Amounts in Thousands)
Michigan
Municipal Municipal
Bond Fund Bond Fund
<S> <C> <C> <C> <C>
Amount Shares Amount Shares
------ ------ ------ ------
For the year ended June 30, 1996:
Investor A Shares:
Shares issued...................... $ 15,920 1,523 $ 4,251 389
Dividends reinvested............... 285 27 1,256 116
Shares redeemed.................... (19,806) (1,894) (6,722) (619)
-------- ------ -------- -----
Net decrease....................... $ (3,601) (344) $ (1,215) (114)
======== ====== ======== =====
Investor B Shares:
Shares issued...................... $ 490 47 $ 1,672 154
Dividends reinvested............... 15 1 90 8
Shares redeemed.................... (211) (20) (454) (42)
-------- ------ -------- -----
Net increase....................... $ 294 28 $ 1,308 120
======== ====== ======== =====
Institutional Shares:
Shares issued...................... $ 21,245 2,020 $ 35,762 3,288
Dividends reinvested............... 354 34 1,228 113
Shares redeemed.................... (24,461) (2,322) (28,002) (2,571)
-------- ------ -------- -----
Net increase (decrease)............ $ (2,862) (268) $ 8,988 830
======== ====== ======== =====
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)
======== ====== ======== =====
Continued
</TABLE>
102
<PAGE>
================================================================================
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
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 the Funds. Under the terms of
the sub-investment advisor agreement, Gulfstream is entitled to receive fees
from FIC based on a percentage of the average daily net assets of each of the
Balanced and International Discovery Funds.
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 year ended June 30,
1996, BISYS received $4,099,106 in commissions from sales of shares of the
variable net asset value funds of which $284,601 was reallowed to the First
of America Brokerage Services, 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 operated 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 asset value 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 the Investor B or Investor C shares of that Fund.
These fees may be used by BISYS to pay banks, including 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.
Continued
103
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the year ended June 30, 1996 (amounts in thousands):
<TABLE>
<CAPTION>
U.S.
Prime Government
Obligations Obligations Treasury Tax-Free
Fund Fund Fund Fund
----------- ------------- ------------ ---------------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.40% 0.40% 0.40% 0.40%
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions................................ $ 158 $ 82 $ 325 $ 32
12b-1 Fees Investor A:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions................................ $ 211 $280 $ 179 $ 76
Transfer Agent and Mutual Fund Accountant Fees.......... $ 194 $112 $ 91 $ 64
<CAPTION>
High Income Large Small
Equity Capitalization Equity Capitalization
Fund Fund (a) Fund Fund
------------ -------------- ---------- ----------------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 1.00% 0.80% 1.00% 1.00%
Voluntary fee reduction................................. -- $ 20 $ 3 $ 9
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions................................ -- $ 5 $ 1 $ 2
12b-1 Fees Investor A:
Annual fee before voluntary fee reductions.............. 0.25% 0.25% 0.25% 0.25%
(percentage of average net assets)..................... -- $ 1 $ 1 $ 1
Voluntary fee reductions
12b-1 Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.75% 0.75% 0.75% 0.75%
Voluntary fee reductions................................ -- $ 2 -- --
12b-1 Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.75% 0.75% 0.75% 0.75%
Shareholder Service Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions................................ -- $ 1 -- --
Shareholder Service Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.25% 0.25% 0.25% 0.25%
Transfer Agent and Mutual Fund Accountant Fees.......... $ 282 $ 43 $ 442 $ 349
</TABLE>
Continued
104
<PAGE>
<TABLE>
<CAPTION>
Notes to Financial Statements, continued
- -------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Limited Intermediate
International Maturity Government
Discovery Balanced Bond Obligations
Fund Fund Fund Fund
------------- --------- ---------- -------------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ (b) 1.00% 0.74% 0.74%
Voluntary fee reduction $ 4 $ 293 $ 297 $ 107
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions........................... $ 1 -- $ 78 $ 134
12b-1 Fees Investor A:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.25% 0.25% 0.25% 0.25%
12b-1 Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.75% 0.75% 0.75% 0.75%
12b-1 Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.75% 0.75% 0.75% 0.75%
Shareholder Service Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.25% 0.25% 0.25% 0.25%
Shareholder Service Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets)................ 0.25% 0.25% 0.25% 0.25%
Transfer Agent and Mutual Fund Accountant Fees..... $ 290 $ 168 $ 155 $ 193
<CAPTION>
U.S.
Government Municipal Michigan
Income Bond Bond Municipal
Fund Fund Fund Bond Fund
------------- --------- --------- --------------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.74% 0.74% 0.74% 0.74%
Voluntary fee reduction $ 544 $ 223 $ 277 $ 425
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions $ 94 $ 278 $ 146 $ 223
12b-1 Fees Investor A:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.25% 0.25% 0.25% 0.25%
12b-1 Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.75% 0.75% 0.75% 0.75%
12b-1 Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.75% 0.75% 0.75% 0.75%
Shareholder Service Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.25% 0.25% 0.25% 0.25%
Shareholder Service Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets) 0.25% 0.25% 0.25% 0.25%
Transfer Agent and Mutual Fund Accountant Fees $ 227 $ 272 $ 127 $ 180
- -----------
</TABLE>
(a) For the period from December 28, 1995 (Commencement of operations) through
June 30, 1996.
(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.
Continued
105
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP FUNDS JUNE 30, 1996
6. Federal Income Tax Information (unaudited):
The Parkstone Group of Funds designates the following eligible distributions
for the dividends received deduction for corporations (amounts in thousands
except per share data):
<TABLE>
<CAPTION>
High Large
Equity Capitalization Balanced
Fund Fund Fund
----------- -------------- --------
<S> <C> <C> <C>
Dividend Income $11,515 $ 577 $ 483
Dividend Income Per Share-Investor A $ 0.237 $0.018 $0.035
Dividend Income Per Share-Investor B 0.150 0.006 0.025
Dividend Income Per Share-Investor C 0.150 0.000 0.026
Dividend Income Per Share-Institutional 0.268 0.018 0.039
</TABLE>
The International Discovery Fund elects to pass on the benefits of all the
foreign tax credit to its shareholders for the year ended June 30, 1996. The
Fund paid $498 in foreign taxes on gross foreign dividend of $6,057.
As of June 30, 1996, for Federal income tax purposes, the following funds
have capital loss carryforwards available to offset future capital gains, if
any (amounts in thousands):
<TABLE>
<CAPTION>
Amount Expires
------- -------
<S> <C> <C>
International Discovery Fund $12,230 2004
Limited Maturity Bond Fund 4,367 2002
2,458 2003
479 2004
Intermediate Government Obligations Fund 9,090 2002
2,891 2003
U.S. Government Income Fund 6,507 2003
Bond Fund 15,701 2003
</TABLE>
Under current tax law, capital losses or foreign currency losses realized
after October 31 may be deferred and treated as occurring on the first day
of the fiscal year ended June 30, 1997. As of June 30, 1996, the following
funds have deferred losses of (amounts in thousands):
<TABLE>
<S> <C>
International Discovery Fund $1,180
Balanced Fund 72
Limited Maturity Bond Fund 1,453
Intermediate Government Obligations Fund 3,332
U.S. Government Income Fund 3,486
Bond Fund 7,497
</TABLE>
The Parkstone Group of Funds designates the following exempt-interest income
for the taxable year ended June 30, 1996 (amounts in thousands except per
share data):
<TABLE>
<CAPTION>
Michigan
Tax-Free Municipal Municipal
Fund Bond Fund Bond Fund
---------- ----------- ------------
<S> <C> <C> <C>
Exempt-interest Distributions $4,573 $5,878 $10,073
Exempt Distribution Per Share-Investor A $0.029 $0.410 $ 0.470
Exempt Distribution Per Share-Investor B -- 0.330 0.400
Exempt Distribution Per Share-Institutional 0.030 0.390 0.500
</TABLE>
Continued
106
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
The Percentage break-down of the exempt-interest by state for the Funds'
taxable year ended June 30, 1996 was as follows:
<TABLE>
<CAPTION>
Michigan
Tax-Free Municipal Municipal
Fund Bond Fund Bond Fund
-------- --------- ---------
<S> <C> <C> <C>
Alabama 4.6%
Alaska 0.3%
Arizona 0.1% 2.8%
California 4.5%
Colorado 2.6% 2.3%
Connecticut 1.7%
Delaware 8.7% 1.8%
Florida 0.3% 3.1%
Georgia 5.3% 4.1%
Guam 1.2%
Hawaii 1.0% 1.7%
Idaho 1.3%
Illinois 4.9%
Indiana 1.9% 0.9%
Kansas 4.2% 0.8%
Kentucky 4.0% 1.4%
Louisiana 1.9%
Maryland 2.4% 7.3%
Massachusetts 4.1%
Michigan 14.4% 3.8% 92.6%
Minnesota 4.3%
Missouri 2.7% 1.8%
Montana 1.3%
Nebraska 0.1%
Nevada 2.3%
New Hampshire 2.9%
New Jersey 2.0%
New Mexico 2.4%
New York 0.9% 6.7%
North Carolina 0.6% 1.9%
North Dakota 0.5%
Ohio 2.7% 3.7%
Oklahoma 5.0%
Oregon 2.7%
Pennsylvania 4.8% 4.1%
Puerto Rico 6.4% 5.8%
South Carolina 2.1% 1.1%
South Dakota 0.8%
Tennessee 2.2% 2.6%
Texas 12.4% 5.7%
Utah 0.4%
Vermont 0.1%
Virginia 0.7% 1.2%
Virgin Islands 0.9% 1.6%
Washington 0.8% 2.2%
Wisconsin 1.8% 1.2%
Wyoming 4.5% 0.1%
------- ------- -------
Total 100.0% 100.0% 100.0%
======= ======= =======
</TABLE>
Continued
107
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Prime Obligations Fund
---------------------------------------------------------------------------------------------------------------------
Year ended June 30,
---------------------------------------------------------------------------------------------------------------------
1996 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...... 0.050 0.051 0.047 0.048 0.027 0.028 0.028 0.029 0.046
-------- -------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income...... (0.050) (0.051) (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.. 5.07% 5.17% 4.81% 4.91% 2.75% 2.85% 2.89% 2.91% 4.75%
Ratios/Supplementary Data:
Net Assets
at end of
period (000).. $147,478 $596,075 $108,565 $640,380 $105,611 $561,697 $129,433 $478,821 $690,908
Ratio of expenses
to average net
assets........ 0.74% 0.64% 0.75% 0.65% 0.74% 0.64% 0.66% 0.64% 0.64%
Ratio of net
investment
income to
average net
assets........ 4.93% 5.05% 4.71% 4.83% 2.71% 2.84% 2.86% 2.88% 4.61%
Ratio of expenses
to average net
assets*....... 0.91% 0.66% 0.92% 0.67% 0.91% 0.66% 0.71% 0.66% 0.66%
Ratio of net
investment
income to
average net
assets*....... 4.76% 5.03% 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.
See notes to financial statements.
108
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
U.S. Government Obligations Fund
---------------------------------------------------------------------------------------------------------------------
Year ended June 30,
---------------------------------------------------------------------------------------------------------------------
1996 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....... 0.049 0.050 0.047 0.048 0.027 0.028 0.028 0.028 0.044
-------- -------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income....... (0.049) (0.050) (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... 4.99% 5.10% 4.76% 4.87% 2.69% 2.79% 2.84% 2.86% 4.78%
Ratios/Supplementary Data:
Net Assets at
end of
period (000).. $186,944 $207,451 $169,179 $227,565 $172,482 $192,612 $208,311 $223,855 $400,242
Ratio of expenses
to average net
assets........ 0.74% 0.64% 0.77% 0.67% 0.77% 0.67% 0.66% 0.64% 0.64%
Ratio of net
investment
income to
average net
assets........ 4.88% 4.99% 4.62% 4.76% 2.64% 2.74% 2.79% 2.81% 4.43%
Ratio of expenses
to average net
assets*....... 0.91% 0.66% 0.94% 0.69% 0.94% 0.69% 0.72% 0.66% 0.66%
Ratio of net
investment
income to
average net
assets*....... 4.71% 4.97% 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.
See notes to financial statements.
109
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================================
Financial Highlights
- --------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
Treasury Fund
-------------------------------------------------------------------------------
Year ended June 30,
-------------------------------------------------------------------------------
1996 1995
------------------------- -------------------------
December 1, 1993 to
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........................... 0.049 0.050 0.047 0.048 0.016 0.017
-------- -------- -------- -------- ------- -------
Distributions
Net investment loss............................. (0.049) (0.050) (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..................................... 5.04% 5.14% 4.81% 4.91% 1.66% 1.72%
Ratios/Supplementary Data:
Net Assets at end of period (000)................ $158,723 $223,416 $105,391 $192,232 $56,535 $76,035
Ratio of expenses to average net assets.......... 0.70% 0.60% 0.75% 0.64% 0.64%(b) 0.54%(b)
Ratio of net investment income to average
net assets...................................... 4.87% 4.98% 4.82% 4.95% 2.84%(b) 3.15%(b)
Ratio of expenses to average net assets*......... 0.95% 0.70% 1.04% 0.78% 0.99%(b) 0.74%(b)
Ratio of net investment income to average
net assets*..................................... 4.62% 4.88% 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.
See notes to financial statements.
110
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
Tax-Free Fund
---------------------------------------------------------------------------------------------------------------------
Year ended June 30,
---------------------------------------------------------------------------------------------------------------------
1996 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........ 0.029 0.030 0.029 0.030 0.018 0.019 0.019 0.019 0.033
-------- -------- ------- ------- ------- ------- ------- -------- --------
Distributions
Net investment
income........ (0.029) (0.030) (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.... 2.91% 3.02% 2.90% 3.00% 1.81% 1.92% 2.07% 2.10% 3.34%
Ratios/Supplementary Data:
Net Assets at
end of period
(000).......... $41,713 $106,154 $45,102 $98,489 $48,256 $84,465 $54,886 $86,292 $141,913
Ratio of expenses to
average net
assets......... 0.76% 0.66% 0.74% 0.64% 0.68% 0.58% 0.58% 0.55% 0.59%
Ratio of net investment
income to average net
assets......... 2.89% 2.97% 2.88% 2.97% 1.81% 1.90% 2.05% 2.08% 3.29%
Ratio of expenses
to average
net assets*.... 0.93% 0.68% 0.95% 0.70% 0.93% 0.68% 0.72% 0.65% 0.69%
Ratio of net investment
income to average net
assets*........ 2.72% 2.95% 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.
See notes to financial statements.
111
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
High Income Equity Fund
----------------------------------------------------------------------------------------------------------
Year ended June 30,
----------------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------------- ----------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C 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... 0.30 0.19 0.19 0.34 0.36 0.26 0.11 0.39
Net realized and
unrealized gains
from investments....... 3.27 3.25 3.27 3.26 1.00 0.99 1.17 1.00
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 3.57 3.44 3.46 3.60 1.36 1.25 1.28 1.39
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment income... (0.30) (0.19) (0.19) (0.34) (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...... (0.45) (0.45) (0.45) (0.45) -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total Distributions.... (0.75) (0.64) (0.64) (0.79) (0.37) (0.27) (0.12) (0.40)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period........... $ 17.31 $ 17.27 $ 17.36 $ 17.30 $ 14.49 $ 14.47 $ 14.54 $ 14.49
======== ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges)................ 25.05% 24.11% 24.17% 25.30% 10.32% 9.41% 9.71%(e) 10.55%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............ $82,396 $12,590 $ 164 $337,318 $71,063 $7,131 $ 25 $346,164
Ratio of expenses to
average net assets...... 1.57% 2.32% 2.32% 1.32% 1.54% 2.32% 2.30%(b) 1.32%
Ratio of net investment
income to average net
assets.................. 1.86% 1.11% 1.11% 2.11% 2.65% 1.86% 1.88%(b) 2.86%
Ratio of expenses to
average net assets*..... 1.57% 2.32% 2.32% 1.32% 1.57% 2.57% 2.55%(b) 1.32%
Ratio of net investment
income to average net
assets*................. 1.86% 1.11% 1.11% 2.11% 2.61% 1.61% 1.62%(b) 2.86%
Portfolio turnover (f)... 40.75% 40.75% 40.75% 40.75% 77.70% 77.70% 77.70% 77.70%
Average commission rate
paid (g)................ $0.0800 $0.0800 $0.0800 $0.0800 -- -- -- --
</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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
112
<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 (c) 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 (f)......................... 69.35% 69.35% 69.35% 67.26% 67.26% 68.42%
</TABLE>
See notes to financial statements.
113
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Large Capitalization Fund
------------------------------------------------------------------
December 28, 1995 to June 30, 1996(a)
------------------------------------------------------------------
Investor A Investor B Investor C Institutional
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...................................... $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- --------
Investment Activities
Net investment income (loss)............................. 0.03 0.01 -- 0.03
Net realized and unrealized gains from investments....... 1.23 1.23 1.17 1.25
-------- -------- -------- --------
Total from Investment Activities........................ 1.26 1.24 1.17 1.28
-------- -------- -------- --------
Distributions
Net investment income.................................... (0.03) (0.02) -- (0.03)
In excess of net investment income....................... -- -- (0.01) --
-------- -------- -------- --------
Total Distributions..................................... (0.03) (0.02) (0.01) (0.03)
-------- -------- -------- --------
Net Asset Value,
End of Period............................................ $ 11.23 $ 11.22 $ 11.16 $ 11.25
======== ======== ======== ========
Total Return (excludes sales and redemption charges)...... 8.99% 8.77% 8.14% 12.86%
Ratios/Supplementary Data:
Net Assets at end of period (000)......................... $ 1,657 $ 832 $ 2 $274,150
Ratio of expenses to average net assets................... 1.40%(b) 1.78%(b) 2.24%(b) 2.19%(b)
Ratio of net investment income (loss) to
average net assets........................................ 0.31%(b) (0.32)%(b) (0.45)%(b) 1.26%(b)
Ratio of expenses to average net assets *................. 2.62%(b) 4.07%(b) 4.25%(b) 2.26%(b)
Ratio of net investment income (loss) to
average net assets *...................................... (0.91)%(b) (2.61)%(b) (2.46)%(b) 1.19%(b)
Portfolio turnover (c).................................... 0.86% 0.86% 0.86% 0.86%
Average commission rate paid (d).......................... $ 0.0800 $ 0.0800 $ 0.0800 $ 0.0800
</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) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
114
<PAGE>
[This page has been left blank intentionally.]
115
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Equity Fund
-----------------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- -------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(d)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......... (0.16) (0.23) (0.17) (0.16) (0.12) (0.11) (0.02) (0.08)
Net realized and unrealized
gains from investments..... 4.97 4.82 4.79 5.03 3.46 3.30 1.60 3.47
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Activities................ 4.81 4.59 4.62 4.87 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............... $ 20.71 $ 20.28 $ 20.36 $ 20.83 $ 16.56 $ 16.35 $ 16.40 $ 16.62
======== ======== ======== ======== ======== ======== ======== ========
Total Return
(excludes sales and
redemption charges)......... 29.57% 28.59% 28.69% 29.83% 24.85% 23.88% 23.56%(e) 25.20%
Ratios/Supplementary Data:
Net Assets at end
of period (000)............. $ 66,260 $ 15,840 $ 1,088 $650,495 $ 43,803 $ 6,073 $ 153 $683,320
Ratio of expenses
to average net assets....... 1.54% 2.29% 2.29% 1.29% 1.51% 2.29% 2.27%(b) 1.29%
Ratio of net investment
loss to average net assets.. (0.94)% (1.70)% (1.73)% (0.68)% (0.87)% (1.61)% (1.43)%(b) (0.64)%
Ratio of expenses to
average net assets*......... 1.54% 2.29% 2.29% 1.29% 1.54% 2.54% 2.53%(b) 1.29%
Ratio of net investment
loss to average net assets*. (0.94)% (1.71)% (1.74)% (0.68)% (0.90)% (1.87)% (1.70)%(b) (0.65)%
Portfolio turnover (f)....... 49.27% 49.27% 49.27% 49.27% 46.39% 46.39% 46.39% 46.39%
Average commission rate
paid (g).................... $ 0.0796 $ 0.0796 $ 0.0796 $ 0.0796 -- -- -- --
</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) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
116
<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(c) 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 (f)................... 70.87% 70.87% 70.87% 66.48% 66.48% 93.76%
</TABLE>
See notes to financial statements.
117
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Small Capitalization Fund
-----------------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- -------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C 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 loss......... (0.23) (0.39) (0.20) (0.27) (0.18) (0.19) (0.05) (0.25)
Net realized and
unrealized gains
from investments.......... 12.17 12.03 11.77 12.34 8.46 8.30 3.94 8.65
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Activities............... 11.94 11.64 11.57 12.07 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............... $ 34.17 $ 33.78 $ 33.83 $ 34.50 $ 25.88 $ 25.79 $ 25.91 $ 26.08
======== ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges).................. 49.93% 48.87% 48.32% 50.03% 44.88% 43.78% 44.37%(e) 45.32%
Ratios/Supplementary Data:
Net Assets at end
of period (000)............. $187,016 $ 30,310 $ 5,751 $528,866 $ 71,894 $ 9,990 $ 224 $354,825
Ratio of expenses to
average net assets.......... 1.54% 2.29% 2.29% 1.29% 1.55% 2.32% 3.53%(b) 1.33%
Ratio of net investment
income (loss) to average
net assets................. (1.18)% (1.93)% (1.94)% (0.93)% (1.27)% (2.03)% (3.06)%(b) 1.06%
Ratio of expenses to
average net assets*......... 1.54% 2.29% 2.29% 1.29% 1.58% 2.55% 3.53%(b) 1.33%
Ratio of net investment loss
to average net assets*...... (1.18)% (1.93)% (1.94)% (0.93)% (1.30)% (2.26)% (3.06)%(b) (1.06)%
Portfolio turnover (f)....... 67.22% 67.22% 67.22% 67.22% 50.53% 50.53% 50.53% 50.53%
Average commission rate
paid (g).................... $ 0.0800 $ 0.0800 $ 0.0800 $ 0.0800
</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) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
118
<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(c) 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 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 (e).................... 72.64% 72.64% 72.64% 71.21% 71.21% 95.02%
</TABLE>
See notes to financial statements.
119
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
International Discovery Fund
-----------------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- -------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C 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) (0.08) (0.10) 0.02 0.03 (0.04) 0.03 0.04
Net realized and unrealized
gains (losses) from
investments................. 1.81 1.70 1.79 1.80 (0.36) (0.40) 0.04 (0.33)
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Activities.................. 1.79 1.62 1.69 1.82 (0.33) (0.44) 0.07 (0.29)
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment income......... -- -- -- (0.02) -- -- -- --
In excess of net investment
income...................... (0.01) -- (0.03) (0.02) -- -- -- --
Net realized gains............ -- -- -- -- (0.62) (0.62) (0.62) (0.62)
-------- -------- -------- -------- -------- -------- -------- --------
Total Distributions.......... (0.01) -- (0.03) (0.04) (0.62) (0.62) (0.62) (0.62)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period................. $ 14.01 $ 13.77 $ 14.08 $ 14.11 $ 12.23 $ 12.15 $ 12.42 $ 12.33
======== ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges)..................... 14.65% 13.33% 13.62% 14.76% (2.19)% (3.03)% (1.15)%(f) (1.86)%
Ratios/Supplementary Data:
Net Assets at end of period
(000)........................ $ 39,575 $ 9,489 $ 474 $364,095 $ 34,228 $ 5,469 $ 82 $264,759
Ratio of expenses to average
net assets................... 1.80% 2.55% 2.50% 1.55% 1.78% 2.57% 2.32%(b) 1.56%
Ratio of net investment
income (loss) to average
net assets................... (0.11)% (0.86)% (0.84)% 0.12% 0.08% (0.49)% 1.74%(b) 0.31%
Ratio of expenses to average
net assets*.................. 1.88% 2.63% 2.62% 1.55% 1.91% 2.92% 3.27%(b) 1.59%
Ratio of net investment
income (loss) to average
net assets*.................. (0.19)% (0.94)% (0.97)% 0.12% (0.06)% (0.84)% 0.79%(b) 0.28%
Portfolio turnover (g)......... 54.47% 54.47% 54.47% 54.47% 104.39% 104.39% 104.39% 104.39%
Average commission rate
paid (h)..................... $ 0.0321 $ 0.0321 $ 0.0321 $ 0.0321 -- -- -- --
</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) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Period from commencement of operations.
(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.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
120
<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)(c)
------------------------------------------- ----------------------------
INVESTOR A INVESTOR B (c) 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%
Ratio of net investment 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 (g)........................... 37.23% 37.23% 37.23% 12.47% 12.47%
</TABLE>
See notes to financial statements.
121
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------------
Year ended June 30,
----------------------------------------------------------
1996
----------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period.................................. $ 12.19 $ 12.18 $ 12.12 $ 12.19
---------- ---------- ---------- ----------
Investment Activities
Net investment income............................................... 0.32 0.23 0.24 0.36
Net realized and unrealized gains from investments.................. 1.74 1.74 1.71 1.74
---------- ---------- ---------- ----------
Total from Investment Activities...................................... 2.06 1.97 1.95 2.10
---------- ---------- ---------- ----------
Distributions
Net investment income............................................... (0.31) (0.22) (0.22) (0.35)
Net realized gains.................................................. (0.57) (0.57) (0.57) (0.57)
In excess of net realized gains....................................... -- -- -- --
---------- ---------- ---------- ----------
Total Distributions................................................. (0.88) (0.79) (0.79) (0.92)
---------- ---------- ---------- ----------
Net Asset Value, End of Period........................................ $ 13.37 $ 13.36 $ 13.28 $ 13.37
========== ========== ========== ==========
Total Return (excludes sales and redemption charges).................. 17.51% 16.71% 16.61% 17.81%
Ratios/Supplementary Data:
Net Assets at end of period (000)..................................... $ 17,097 $ 4,278 $ 362 $ 113,493
Ratio of expenses to average net assets............................... 1.41% 2.16% 2.16% 1.16%
Ratio of net investment income to average net assets.................. 2.37% 1.64% 1.65% 2.62%
Ratio of expenses to average net assets*.............................. 1.66% 2.45% 2.41% 1.41%
Ratio of net investment income to average net assets*................. 2.12% 1.35% 1.40% 2.37%
Portfolio turnover (f)................................................ 437.90% 437.90% 437.90% 437.90%
Average commission rate paid (h)...................................... $ 0.0848 $ 0.0848 $ 0.0848 $ 0.0848
</TABLE>
<TABLE>
<CAPTION>
Balanced Fund
----------------------------------------------------------
Year ended June 30,
----------------------------------------------------------
1995
----------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C (d) INSTITUTIONAL
---------- ---------- ------------- -------------
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period............................... $ 10.67 $ 10.67 $ 11.13 $ 10.67
---------- ---------- ---------- ----------
Investment Activities
Net investment income............................................ 0.28 0.20 0.09 0.31
Net realized and unrealized gains from investments............... 1.69 1.67 1.16 1.68
---------- ---------- ---------- ----------
Total from Investment Activities............................... 1.97 1.87 1.25 1.99
---------- ---------- ---------- ----------
Distributions
Net investment income............................................ (0.29) (0.20) (0.10) (0.31)
Net realized gains............................................... (0.01) (0.06) -- (0.03)
In excess of net realized gains.................................. (0.15) (0.10) (0.16) (0.13)
---------- ---------- ---------- ----------
Total Distributions.............................................. (0.45) (0.36) (0.26) (0.47)
---------- ---------- ---------- ----------
Net Asset Value, End of Period..................................... $ 12.19 $ 12.18 $ 12.12 $ 12.19
========== ========== ========== ==========
Total Return (excludes sales and redemption charges)............... 18.96% 17.96% 17.53%(g) 19.22%
Ratios/Supplementary Data:
Net Assets at end of period (000).................................. $ 12,849 $ 1,291 $ 114 $ 89,294
Ratio of expenses to average net assets............................ 1.47% 2.25% 2.16%(b) 1.25%
Ratio of net investment income to average net assets............... 2.54% 1.74% 1.65%(b) 2.75%
Ratio of expenses to average net assets*........................... 1.78% 2.77% 2.68%(b) 1.52%
Ratio of net investment income to average net assets*.............. 2.23% 1.22% 1.13%(b) 2.47%
Portfolio turnover (f)............................................. 250.66% 250.66% 250.66% 250.66%
Average commission rate paid (h)................................... -- -- -- --
</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) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Period from commencement of operations.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(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) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
See notes to financial statements.
122
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Balanced Fund, continued
-------------------------------------------------------------------------------------
Year ended June 30,
-------------------------------------------------------------------------------------
1994 1993 (a)
------------------------------------------- -------------------------
January 31,
1992 to
June 30,
Investor A Investor B (c) Institutional Investor A Institutional 1992 (e)
---------- -------------- ------------- ---------- ------------- -----------
<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)%
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.
123
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
-------------------------------------------------------------------------------------------------------
Year ended June 30,
-------------------------------------------------------------------------------------------------------
1996 1995
-------------------------------------------------------------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C(d) 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.... 0.62 0.55 0.58 0.65 0.56 0.49 0.20 0.58
Net realized and unrealized
gains (losses)
from investments....... (0.21) (0.22) (0.23) (0.21) 0.13 0.12 0.17 0.13
------- ------- ------- ------- ------- ------- ------- -------
Total from Investment
Activities........... 0.41 0.33 0.35 0.44 0.69 0.61 0.37 0.71
------- ------- ------- ------- ------- ------- ------- -------
Distributions
Net investment income.... (0.62) (0.55) (0.58) (0.65) (0.55) (0.47) (0.19) (0.57)
In excess of net
investment income...... (0.01) -- -- (0.01) -- -- -- --
Total return of capital.. (0.01) (0.02) -- (0.01) -- -- -- --
------- ------- ------- ------- ------- ------- ------- -------
Total Distributions.... (0.64) (0.57) (0.59) (0.67) (0.55) (0.47) (0.19) (0.57)
------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period............ $ 9.48 $ 9.46 $ 9.29 $ 9.48 $ 9.71 $ 9.70 $ 9.53 $ 9.71
======= ======= ======= ======= ======= ======= ======= =======
Total Return (excludes sales
and redemption charges).. 4.37% 3.43% 3.71% 4.65% 7.53% 6.68% 3.58%(e) 7.76%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............. $14,390 $ 1,547 $ 11 $136,681 $18,930 $ 892 -- $141,781
Ratio of expenses to
average net assets....... 1.09% 1.84% 1.82% 0.84% 1.05% 1.85% 1.18%(b) 0.84%
Ratio of net investment
income to average net
assets................... 6.09% 5.35% 5.34% 6.32% 5.89% 5.14% 5.61%(b) 6.11%
Ratio of expenses to
average net assets*...... 1.33% 2.08% 2.02% 1.08% 1.36% 2.36% 1.18%(b) 1.11%
Ratio of net investment
income to average net
assets*.................. 5.85% 5.11% 5.14% 6.08% 5.58% 4.62% 5.61%(b) 5.84%
Portfolio turnover (f)..... 618.60% 618.60% 618.60% 618.60% 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 invest-
ment 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) 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.
124
<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 (c) 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 (f)...................... 353.28% 353.28% 353.28% 123.10% 123.10% 87.75%
</TABLE>
See notes to financial statements.
125
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
--------------------------------------------------------------------------------------------------------
Year ended June 30,
--------------------------------------------------------------------------------------------------------
1996 1995
-------------------------------------------------- ----------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C(d) 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.... 0.60 0.53 0.53 0.62 0.50 0.43 0.18 0.52
Net realized and unrealized
gains (losses)
from investments....... (0.25) (0.24) (0.25) (0.24) 0.31 0.30 0.33 0.31
-------- ------- ------- ------- ------- ------- -------- --------
Total from Investment
Activities........... 0.35 0.29 0.28 0.38 0.81 0.73 0.51 0.83
-------- ------- ------- ------- ------- ------- -------- --------
Distributions
Net investment income.... (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
-------- ------- -------- ------- ------- ------- -------- --------
Total Distributions.... (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
-------- ------- -------- ------- ------- ------- -------- --------
Net Asset Value,
End of Period............ $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $9.93
======== ======= ======== ======= ======= ======= ======== ========
Total Return (excludes sales
and redemption charges).. 3.69% 2.93% 2.86% 3.95% 8.69% 7.84% 5.21%(e) 9.02%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............. $22,954 $ 1,843 $ 80 $225,313 $27,521 $ 977 $ 9 $249,169
Ratio of expenses to
average net assets....... 1.21% 1.96% 1.96% 0.96% 1.25% 2.06% 2.09%(b) 1.04%
Ratio of net investment
income to average net
assets................... 5.51% 4.78% 4.83% 5.76% 5.22% 4.41% 4.24%(b) 5.43
Ratio of expenses to
average net assets* ..... 1.30% 2.05% 2.05% 1.05% 1.41% 2.42% 2.36%(b) 1.16%
Ratio of net investment
income to average net
assets*.................. 5.42% 4.69% 4.74% 5.67% 5.07% 4.05% 3.98%(b) 5.31%
Portfolio turnover (f)..... 916.39% 916.39% 916.39% 916.39% 549.93% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) 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.
126
<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 (c) 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 (f) ................. 546.06% 546.06% 546.06% 225.90% 225.90% 114.76%
</TABLE>
See notes to financial statements.
127
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
U.S. Government Income Fund
--------------------------------------------------------------------------------------------------------
Year ended June 30,
--------------------------------------------------------------------------------------------------------
1996 1995
-------------------------------------------------- ----------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C(d) 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..... 0.73 0.66 0.66 0.75 0.75 0.68 0.28 0.76
Net realized and
unrealized gains (losses)
from investments........ (0.17) (0.18) (0.17) (0.17) -- 0.01 0.24 0.01
------- ------- ------- ------- ------- ------- -------- --------
Total from Investment
Activities............ 0.56 0.48 0.49 0.58 0.75 0.69 0.52 0.77
------- ------- ------- ------- ------- ------- -------- --------
Distributions
Net investment income..... (0.65) (0.59) (0.66) (0.67) (0.66) (0.61) (0.25) (0.68)
Tax return of capital..... (0.08) (0.07) -- (0.08) (0.08) (0.07) (0.03) (0.08)
------- ------- ------- ------- ------- ------- -------- --------
Total Distributions..... (0.73) (0.66) (0.66) (0.75) (0.74) (0.68) (0.28) (0.76)
------- ------- ------- ------- ------- ------- -------- --------
Net Asset Value,
End of Period............. $ 9.25 $ 9.21 $ 9.19 $ 9.25 $ 9.42 $ 9.39 $ 9.36 $ 9.42
======= ======= ======== ======= ======= ======= ======== ========
Total Return (excludes
sales and redemption
charges).................. 5.97% 5.22% 5.25% 6.34% 8.46% 7.71% 5.26%(g) 8.70%
Ratios/Supplementary Data:
Net Assets at end of
period (000).............. $52,250 $19,556 $ 70 $130,615 $50,931 $ 8,478 $ 29 $110,190
Ratio of expenses to
average net assets........ 1.01% 1.76% 1.76% 0.76% 1.04% 1.83% 2.88%(b) 0.83%
Ratio of net investment income
to average net assets..... 7.70% 6.92% 6.92% 7.94% 8.03% 7.28% 11.54%(b) 8.25%
Ratio of expenses to
average net assets*....... 1.35% 2.10% 2.10% 1.10% 1.44% 2.44% 2.88%(b) 1.19%
Ratio of net investment
income to average net
assets*................... 7.36% 6.58% 6.58% 7.60% 7.63% 6.67% 11.54%(b) 7.89%
Portfolio turnover (f)...... 348.01% 348.01% 348.01% 348.01% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Period from commencement of operations.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(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.
See notes to financial statements.
128
<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 (c) 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%
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.
129
<PAGE>
================================================================================
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------------------------------------------------
Year ended June 30,
---------------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- ------------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C (d) 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.... 0.57 0.50 0.50 0.59 0.58 0.52 0.22 0.61
Net realized and
unrealized gains (losses)
from investments........ (0.16) (0.17) (0.17) (0.16) 0.38 0.42 0.62 0.43
-------- -------- -------- -------- -------- -------- -------- --------
Total from Investment
Activities.............. 0.41 0.33 0.33 0.43 0.96 0.94 0.84 1.04
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment income.... (0.57) (0.50) (0.50) (0.59) (0.58) (0.52) (0.22) (0.61)
In excess of net
investment income....... -- -- -- -- (0.01) -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total Distributions...... (0.57) (0.50) (0.50) (0.59) (0.59) (0.52) (0.22) (0.61)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period........... $ 9.51 $ 9.51 $ 9.47 $ 9.56 $ 9.67 $ 9.68 $ 9.64 $ 9.72
======== ======== ======== ======== ======== ======== ======== ========
Total Return
(excludes sales and
redemption
charges)................ 4.27% 3.46% 3.50% 4.49% 10.85% 10.62% 8.41% (e) 11.78%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............ $ 20,175 $ 4,426 $ 210 $549,336 $ 17,572 $ 1,330 $ 28 $509,189
Ratio of expenses to
average net assets...... 1.19% 1.94% 1.91% 0.94% 1.24% 2.03% 1.99%(b) 1.02%
Ratio of net investment
income to average net
assets.................. 5.71% 4.97% 5.00% 5.96% 6.32% 5.54% 5.62%(b) 6.54%
Ratio of expenses to
average net assets*..... 1.28% 2.03% 2.03% 1.03% 1.39% 2.39% 2.26%(b) 1.14%
Ratio of net investment
income to average net
assets*................. 5.62% 4.88% 4.88% 5.87% 6.17% 5.18% 5.36%(b) 6.42%
Portfolio turnover (f)... 1189.27% 1189.27% 1189.27% 1189.27% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) 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.
130
<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 (c) 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 (f)..................... 893.27% 893.27% 893.27% 443.98% 443.98% 289.38%
</TABLE>
See Notes to financial statements.
131
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Municipal Bond Fund
-----------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------
1996 1995
------------------------------------- --------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C (d)(7) 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)................. 0.41 0.33 0.43 0.41 0.33 (0.03) 0.46
Net realized and
unrealized gains from
investments............ 0.03 0.03 0.04 0.27 0.27 0.65 0.27
------ ------ ------ ------ ------ ----- ------
Total from Investment
Activities........... 0.44 0.36 0.47 0.68 0.60 0.62 0.73
------ ------ ------ ------ ------ ----- ------
Distributions
Net investment income.. (0.40) (0.33) (0.43) (0.41) (0.33) (0.14) (0.46)
In excess of net
investment income...... -- -- -- (0.17) (0.17) (0.16) (0.17)
------ ------ ------ ------ ------ ----- ------
Total Distributions... (0.40) (0.33) (0.43) (0.58) (0.50) (0.30) (0.63)
------ ------ ------ ------ ------ ----- ------
Net Asset Value,
End of Period.......... $10.43 $10.39 $10.43 $10.39 $10.36 $10.20 $10.39
====== ====== ====== ====== ====== ====== ======
Total Return (excludes
sales and redemption
charges)............... 4.29% 3.48% 4.55% 7.02% 6.17% 3.47%(e) 7.25%
Ratios/Supplementary Data:
Net Assets at end of
period (000)........... $7,835 $735 $132,527 $11,378 $447 -- $134,784
Ratio of expenses to
average net assets..... 1.05% 1.80% 0.80% 1.02% 1.80% 0.71%(b) 0.80%
Ratio of net investment
income (loss) to average
net assets............. 3.85% 3.11% 4.10% 4.00% 3.22% (0.54)%(b) 4.21%
Ratio of expenses to
average net assets*.... 1.34% 2.09% 1.09% 1.33% 2.33% 0.71%(b) 1.08%
Ratio of net investment
income (loss) to average
net assets*............ 3.56% 2.82% 3.81% 3.68% 2.68% (0.54)%(b) 3.93%
Portfolio turnover (g).. 47.46% 47.46% 47.46% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) There was only one share outstanding for the Investor C shares at June 30,
1995. There were no shares outstanding for the Investor C shares at June
30, 1996.
(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.
132
<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(c) 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 (g)... 44.39% 44.39% 44.39% 67.26% 67.26% 66.31%
</TABLE>
See notes to financial statements.
133
<PAGE>
==============================================================================
Financial Highlights
- ------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
----------------------------------------------------------------------------------------------
Year ended June 30,
----------------------------------------------------------------------------------------------
1996 1995
------------------------------------- -------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C (d)(n) 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) ..... 0.47 0.40 0.50 0.48 0.40 (0.02) 0.50
Net realized and unrealized gains
from investments................ 0.04 0.04 0.04 0.23 0.24 0.62 0.25
------- ------- -------- ------- ------- -------- --------
Total from Investment Activities 0.51 0.44 0.54 0.71 0.64 0.60 0.75
------- ------- -------- ------- ------- -------- --------
Distributions
Net investment income .............. (0.47) (0.40) (0.50) (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 ............ (0.50) (0.43) (0.53) (0.49) (0.41) (0.17) (0.52)
------- ------- -------- ------- ------- -------- --------
Net Asset Value,
End of Period ..................... $ 10.76 $10.76 $ 10.77 $ 10.75 $10.75 $10.54 $ 10.76
======= ====== ======== ======= ====== ====== ========
Total Return (excludes sales and
redemption charges) ............... 4.87% 4.13% 5.12% 6.99% 6.28% 3.39%(e) 7.33%
Ratios/Supplementary Data:
Net Assets at end of period (000) .. $36,681 $3,565 $185,191 $37,874 $2,270 -- $176,068
Ratio of expenses to average net
assets ............................ 1.02% 1.77% 0.77% 1.00% 1.78% 0.48%(b) 0.78%
Ratio of net investment income (loss) to
average net assets ................ 4.32% 3.57% 4.57% 4.57% 3.80% (0.32)%(b) 4.79%
Ratio of expenses to average
net assets* ....................... 1.31% 2.06% 1.06% 1.32% 2.32% 0.48%(b) 1.07%
Ratio of net investment income (loss) to
average net assets*................ 4.03% 3.28% 4.28% 4.25% 3.25% (0.32)%(b) 4.50%
Portfolio turnover (g) ............. 27.66% 27.66% 27.66% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994 .
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) 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.
(f) There was only one share outstanding for the Investor C shares at June 30,
1995. There were no shares outstanding for the Investor C shares at June
30, 1996.
(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.
134
<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 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 (g) .............................. 6.69% 6.69% 6.69% 35.81% 35.81% 19.97%
</TABLE>
See notes to financial statements.
135
<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 at
1-800-451-8377
The Parkstone Mutual Funds
Growth Funds
Parkstone Small Capitalization Fund
Parkstone Equity Fund
Parkstone Large Capitalization 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
Parkstone Treasury Fund
[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
- --------------------------------------------------------------------------------
----------------
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 2443
----------------
