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[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
December 31, 1996
SEMI-ANNUAL REPORT
[ARTWORK APPEARS HERE]
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Table of Contents
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The Parkstone Group of Funds December 31, 1996
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Portfolio Performance Discussion............................................ 6
Statements of Assets and Liabilities........................................ 30
Statements of Operations.................................................... 34
Statements of Changes in Net Assets......................................... 38
Schedules of Portfolio Investments.......................................... 46
Notes to Financial Statements............................................... 95
Financial Highlights........................................................ 108
1
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Message From Your Chairman
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The Parkstone Group of Funds December 31, 1996
Dear Shareholder:
We're pleased to report that the six months ended December 31, 1996, was a
period of solid growth for the Parkstone Funds. During the period, the Dow
Jones Industrial Average continued to climb. While the road was somewhat
rockier for fixed- income investors, bonds, too, firmed as the year drew to a
close. Moreover, investors continued to pour money into mutual funds. Over the
course of the six-month period ended December 31, 1996, net assets under
management increased from $6.0 billion to $6.1 billion.
SMALL CAP FUND CONTINUES TO SHINE
We are also extremely pleased to report that once again the Parkstone Small
Capitalization Fund was recognized for its strong performance. In its annual
review of mutual fund performance published on January 5, 1997, The Wall Street
Journal ranked the Parkstone Small Capitalization Fund among the top ten
diversified equity funds (4 out of 124 funds of this kind)/1/ for its
performance over the five years ended December 31, 1996/1/, for the
Institutional Shares. During this five-year period, the Fund had an average
annual return of 21.3% (Investor A Shares at NAV), and since inception, the
Fund had an average annual total return of 21.6%./2/
- -------
/1/ Performance rankings are based on total returns for the periods. Past
performance is no guarantee of future results. The rankings are based on data
from Morningstar for the one-year period that the Fund (Institutional shares)
ranked 22 out of 407 Equity Funds.
/2/ With the maximum 4.50% sales charge, Investor A Shares had a total return
of 20.2% for the five-year period and an average annual return of 20.9% since
inception. 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.
NEW FUNDS FOR 401(K) INVESTORS
We're also pleased to announce the launch of three new asset allocation funds
in the fourth quarter of 1996. These funds, collectively named the Parkstone
Lifeworks Funds, have been designed to meet the specific needs of 401(k)
investors and administrators. The Parkstone Lifeworks Aggressive Allocation
Fund is intended for long-term investors seeking aggressive growth. The
Parkstone Lifeworks Balanced Allocation Fund is for investors comfortable
taking a more cautious approach to the financial markets, and The Parkstone
Lifeworks Conservative Allocation Fund is for those with shorter investment
time horizons. To find out more about these funds, or for a prospectus, ask
your company's human resources department manager or 401(k) administrator to
contact us at 1-800-228-1872. Please read the prospectus carefully before
investing.
OPTIMISTIC, YES, BUT NOT "IRRATIONALLY EXUBERANT" . . .
For stock investors the past year has been another good one. But given the
dramatic gains over the course of this bull market, stocks have earned a rest--
and while conditions remain favorable, gravity will ultimately prevail. Stocks
will take a breather. The most successful investors, however, are those that
take a systematic, disciplined and long-term approach to the marketplace.
That's why we believe now is the time to consult your investment adviser to
review your primary investment objectives and your time horizons and to revisit
the level of risk appropriate for you and your portfolio. Historically, those
with the fortitude to withstand dramatic swings in price have been handsomely
rewarded--and it is far easier to do so if your goals, time horizons and risk
comfort are clearly defined.
IN CLOSING . . .
In the pages that follow, you will find a detailed discussion of the
performance of each of the investment portfolios of The Parkstone Group of
2
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Message From Your Chairman, continued
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The Parkstone Group of Funds December 31, 1996
Funds during the six months ended December 31, 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 to serving your
investment 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 Group of Funds
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.
3
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Message From Your Investment Adviser
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The Parkstone Group of Funds December 31, 1996
Dear Shareholders:
Which way are interest rates going? From an economic perspective, that was the
essential question at year-end. Typically, there are two schools of thought,
and this year is no different. One group contends that the economy is
sufficiently weak and no change in Federal Reserve policy is necessary. The
other camp insists that activity is picking up after its recent slump. Due to
low unemployment, they expect inflationary pressures to mount--ultimately
causing the Fed to tighten, which, in turn, may lead to significant corrections
in the financial markets.
NEVER FIGHT THE FED!
Our own view is that, when all is said and done, 1997 will look very much like
the year just finished with growth in the range of 2.25% to 2.75%--and it would
be very nice if the economy behaves itself.
However, like the fellow who drowned crossing a river with an average depth of
three feet, complications can and will arise. The key questions are, what
complications will arise, and how will they impact the financial markets?
Much as it did last year, we expect momentum from the fourth-quarter economic
growth to carry through into the first several months of 1997--resulting in
growth in the range of 3% for the first quarter. Consumer confidence is at a
multi-year high. Incomes are growing. In addition, the wealth effect from gains
in financial asset prices over the past several years is now rippling through
the economy. Bottomline, consumers have the necessary resources to continue
spending, at least through the first quarter of the year, if they choose to do
so. From that point forward, however, we expect activity to decrease gradually
over the balance of the year--due to the inability of consumers to increase
their debt, the tightening of credit standards by financial institutions, or a
reaction to higher interest rates induced by a change in Federal Reserve
policy.
Indeed, a key message of this report is that one ignores Mr. Greenspan and the
Federal Reserve at one's own peril. The markets appear to have forgotten the
December 6 "irrational exuberance' speech by Mr. Greenspan--but you can be very
sure he hasn't. The election is over, the Federal Reserve is politically
independent, and historically, that independence has tended to be shown in
years following important elections. Also, historically, the Chairman has
chosen to strike sooner rather than later. If the economy continues showing
strength, and the stock market continues its gallop of the last several years,
the gun will be cocked and we would expect to see the Federal Reserve pull the
trigger and increase interest rates.
A "CATCH-22" SITUATION
In short, the economy is in the midst of a "Catch 22" situation: strong
economic growth will be met by higher interest rates from the Federal Reserve
in an effort to dampen inflationary pressures. Should growth be slower,
corporate profits could deteriorate significantly. Either way, the financial
markets are very vulnerable--and there is little margin for error.
Having painted a cloudy but darkening picture, the key question is, "Suppose we
are wrong?" If we are, the best case scenario would likely be an economy that
is sufficiently wishy-washy to appease the Federal Reserve--which is a
possibility to be sure, but not one we feel is very likely. Rather, we expect
to see strength early on and a policy reaction. Indeed, interest rates are
likely to head up, and prices in the financial markets are likely to head down
in the year ahead. Very simply, a slowdown in the growth of corporate profits
will not overcome the determination of the Federal Reserve. Hence, it will be
weakness in the financial markets that will feed back into the economy and may
create a further economic downturn.
GRAVITY ALWAYS PREVAILS
Of course, given the strength of the economy and the spectacular run-up in
stock prices in recent years, none of this news should be particularly
surprising. Nor is any of it all that unusual. Since 1900, there have been
eight occasions when the
4
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Message From Your Investment Adviser, continued
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The Parkstone Group of Funds December 31, 1996
stock market has returned 20% or more two years in a row. In seven out of the
eight cases, the market saw returns ranging from -33% to +2% in the third year.
Moreover, prior to this year, there have been nine "seventh" years in this
century. Seven were losers for the stock market. Consequently, history--as well
as many economic factors--favors a market decline during 1997.
Regardless of what happens over the course of the next year, the underlying
fundamentals of our economy are still solid. As a result, looking beyond the
immediate future, we are still very optimistic about the prospects for the
financial markets over the next several years and on into the 21st century.
Sincerely,
/s/ Richard A. Wolf
Richard A. Wolf, CFA
President and Chief Investment Officer
First of America Investment Corporation
5
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Portfolio Performance Discussion
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The Parkstone Group of Funds December 31, 1996
MID CAPITALIZATION FUND
The second half of 1996 was the best of times and the worst of times for small-
and mid-cap investors. After a brief but dramatic drop in July, smaller
companies bounced back quickly and made spectacular gains over the summer and
early fall. But, as the fourth quarter dawned, the small- and mid-cap stocks
simply ran out of steam as investors moved en masse to bigger and better known
names. While the market climbed throughout the fall, the gains were rather
narrowly concentrated in larger-cap issues.
Nonetheless, enthusiasm for mid-cap stocks did not die out completely--and
several of our holdings performed very well indeed over the period. Throughout
the period, selected technology and financial stocks continued to make positive
and substantial gains. Consequently, the period overall was a good one for the
portfolio. For the six months ended December 31, 1996, the Fund posted a total
return of 3.36% (Investor A Shares).+
FOCUSING ON THE FUNDAMENTALS
Clearly, the year ahead will be an interesting one for stock investors. While
we may see some sort of correction in the short-term, long-term the prospects
for our economy and for stocks remain bright. Even more importantly, the
fundamentals of the companies held in our portfolio are strong. Consequently,
while we will continue to monitor the situation closely in the months ahead, we
do not plan to make any major shifts in the Fund's allocation in the immediate
future.
As of December 31, 1996, the Fund was fully invested and widely diversified,
with holdings in more than 65 different companies. The top five holdings in the
portfolio were Hospitality Franchise Systems (3.3%), HealthSouth Corp. (2.9%),
Service Corp. International (2.8%), Parametric Technology Corp. (2.8%) and
Omnicare, Inc. (2.8%).++
- -------
+ The total return, with the maximum 4.50% sales charge, was - 1.31% 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 Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 13.20% 12.54% 14.47%
- -----------------------------------------------------------
Institutional 18.32% 13.63% 15.14%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** 14.25% 12.62%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 17.72% 13.12% 14.83%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Mid Capitalization Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional S&P 400 Index
<S> <C> <C> <C>
10/88 9,551 10,000 10,000
6/89 11,159 11,683 12,293
6/90 13,305 13,930 14,190
6/91 13,245 13,867 16,012
6/92 15,255 15,972 18,982
6/93 18,524 19,381 23,290
6/94 18,048 18,909 23,281
6/95 22,533 23,674 28,483
6/96 29,197 30,736 34,631
12/96 30,178 31,671 37,800
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B S&P 400
<S> <C> <C>
2/94 10,000 10,000
6/94 8,430 9,059
6/95 10,486 11,083
6/96 13,689 13,475
12/96 14,131 14,708
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C S&P 400
<S> <C> <C>
10/88 10,000 10,000
6/89 11,583 12,293
6/90 13,930 14,190
6/91 13,867 16,012
6/92 15,972 18,982
6/93 19,381 23,290
6/94 18,909 23,281
6/95 23,364 28,483
6/96 30,066 34,631
12/96 30,978 37,800
</TABLE>
The Fund's performance is now being compared to the Standard & Poor's Mid-Cap
400 Index which is a measure of 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 Mid 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.
7
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds December 31, 1996
EQUITY INCOME FUND
Like most portfolios of this type, the Fund was heavily weighted in sectors
that provide its investors with yield as well as the potential for growth--and
very simply, as investors sought reassurance in the rarefied atmosphere of the
period, many of these stocks led the market. Moreover, lack of action by the
Federal Reserve lessened pressure and further fueled enthusiasm for income
producing stocks in general and interest-sensitive issues in particular.
Consequently, while stocks across the board contributed to performance, those
in the financial-services sector advanced consistently and impressively over
the course of the period.
As the year drew to an end, however, the market's focus narrowed further--a few
well-known names outpaced the market. Committed to pursuing a long-term,
diversified strategy, we did not own all of the "famous names" that led the
market higher--but we did own several. Moreover, the portfolio held many other
strong performers that posted gains that would have been considered very
respectable, indeed, in any other period. As a result, we're pleased to report
that the Fund posted a return of 7.30% (Investor A Shares)+ for the six months
ended December 31, 1996.
INVESTING WITH STABILITY IN MIND
Focused on stocks with strong track records and solid income-producing
potential, the Fund is designed to provide its investors with growth potential
on market upswings--and protection on downdrafts. Consequently, while we may
see volatility increase in the months ahead, the Fund's ride may be somewhat
smoother than most.
That said, we remain optimistic about the long-term prospects for the stock
market. In the months ahead, we will continue to seek out opportunities that
offer our investors a combination of current income and solid long-term growth
potential. Moreover, we believe that any correction in market prices will
create a number of very attractive opportunities for the Fund.
As of December 31, 1996, the top five holdings in the Fund's portfolio were;
Eli Lilly & Co. (3.6%), First USA (3.4%), MBNA Corp. (3.3%), Emerson Electric
(3.3%) and Sears Roebuck (2.8%).++
- -------
+ The total return, with the maximum 4.50% sales charge, was 2.44% 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 Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 12.10% 10.02% 12.64%
- -----------------------------------------------------------
Institutional 17.21% 11.11% 13.32%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** 12.45% 9.30%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 16.40% 10.68% 13.05%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Equity Income Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional S&P 500 Index
<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
12/96 26,454 27,792 33,913
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
12/96 12,953 16,577
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
12/96 27,258 33,913
</TABLE>
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 a whole. The index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment-management and fund-accounting fees. The
performance of the Parkstone Equity 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 the original cost.
9
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds December 31, 1996
LARGE CAPITALIZATION FUND
After favoring smaller cap stocks in the first half of 1996, investors sought
reassurance and favored well-established, well-known names in the second half
as the stock market moved into the stratosphere. As a result, large-
capitalization stocks were the strongest performers of the period--and among
that group, the most impressive gains were experienced by the biggest and best
known names.
Invested primarily in these stocks, the period was a very good one indeed for
the Fund. Our holdings in the pharmaceutical sector and financial sector were
particularly strong performers. Also, despite warnings of "chip gluts," waning
PC sales and market enthusiasm, Intel (2.0% of the portfolio's holdings),
Microsoft (2.3%) and 3Com (1.3%) also made substantial, if not spectacular,
contributions to performance.
As a result, for the six months ended December 31, 1996, the Fund posted a
total return of 9.32% (Investor A Shares).+ Even more impressively, however,
the Fund posted a total return of 19.15%+ for the period 2/1/96 (the Fund's
inception date) to December 31, 1996--versus a return of 18.91% for the S&P 500
for the same period. While it is still too early to make an accurate assessment
of long-term performance, we are extremely pleased with these results--and
believe they accurately display the Fund's potential.
POSITIONED FOR THE 21ST CENTURY
Given the current valuations in the marketplace, the ride for stock investors
may be somewhat bumpy over the next several months. Long-term, however, the
prospects remain bright for stocks with strong fundamentals. Consequently, in
the months ahead, we will continue to seek out and focus on those companies
with solid earnings records and growth prospects--in short, those leading their
industries today and with the potential to do so tomorrow.
As of December 31, 1996, the Fund was fully invested and widely diversified,
with holdings in 55 companies in a wide variety of industries. The five largest
positions were Federal National Mortgage (2.7%), Oracle Corp. (2.7%), First
Data Corp. (2.6%), United Technologies (2.4%) and Cisco Systems (2.4%).++
- -------
+ The total return, with the maximum 4.50% sales charge was 4.40% for the six
months and 13.75% period since inception.
++ The composition of the Fund's portfolio is subject to change.
10
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Aggregate Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
Inception
(2/1/96)
- -----------------------------------------------------------
<S> <C>
Investor A* 13.75%
- -----------------------------------------------------------
Investor B** 14.54%
- -----------------------------------------------------------
Investor C*** 16.74%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred
Sales Charge
*** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
1 Year Since Inception
(12/28/95)
- -----------------------------------------------------------
<S> <C> <C>
Institutional 23.24% 23.14%
- -----------------------------------------------------------
</TABLE>
Large Capitalization Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Investor B Investor C S&P 500 Index
<S> <C> <C> <C> <C>
2/96 9,547 10,000 10,000 10,000
6/96 10,405 10,477 10,714 10,653
12/96 11,375 11,454 11,674 11,897
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Institutional S&P 500
<S> <C> <C>
12/95 10,000 10,000
6/96 11,286 11,032
12/96 12,349 12,604
</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 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 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
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- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
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The Parkstone Group of Funds December 31, 1996
SMALL CAPITALIZATION FUND*
After a sharp run upward in the first half of 1996, profit-taking in small-cap
stocks was expected in the second half. Despite a fundamentally unchanged
picture, however, investors chose to reinvest profits in larger-cap issues. As
a result, the environment in the small-cap sector of the market was somewhat
less than inspiring in the second half.
Even in this climate, many of our holdings held their ground and even advanced
impressively during the period. Miller Industries (approximately 1.8% of the
portfolio's holdings), a tow-truck manufacturer, gained 108%. Brightpoint
(approximately 1.6% of the portfolio's holdings), a cellular-phone distributor,
rose 108%. And Sanmina (approximately 2.8% of the portfolio's holdings), a
contract electronics manufacturer, rose 109%.++ With the exception of these
outstanding performers, the Fund fell back as enthusiasm for even the soundest
of small-cap stocks simply wilted as the year drew to a close. For the six
months ended December 31, 1996, the Fund posted a total return of -0.34
(Investor A Shares).+
A REBOUND AROUND THE CORNER
While this setback was not all that surprising, it may have been a bit overdone
in recent weeks.
Experiencing huge gains earlier in the year, many small-cap stocks may have, in
fact, gotten a bit ahead of themselves. Systemsoft (approximately 1.1% of the
portfolio's holdings), for instance, gained 509% over the first three quarters
of the year and was due for some sort of correction. The decline of 56% we saw
in the fourth quarter, however, may have been a bit more than was justified.
Even with this dramatic drop, the stock gained over 164% for the year. As a
result, in the months ahead, we would expect to see Systemsoft and others like
it rebound smartly as the economy slows and investors return to the small- cap
market seeking growth.++
As of December 31, 1996, the top five holdings in the Fund's portfolio were
Dura Pharmaceuticals (3.6%), Omnicare (2.9%), Concored EFS (2.8%), Sanmina
Corp. (2.8%) and Credit Acceptance Corp. (2.7%).++
- -------
*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 -4.82 for the
period.
++The composition of the Fund's portfolio is subject to change.
12
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 21.84% 20.23% 20.91%
- -----------------------------------------------------------
Institutional 27.70% 21.53% 21.71%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** 22.62% 23.02%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 26.24% 21.03% 21.40%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Small Capitalization Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
12/96 47,218 49,830 28,410
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
12/96 18,272 14,248
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
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
12/96 48,821 28,410
</TABLE>
The Fund's performance is compared to the Russell 2000 Index, which represents
the performance of domestically traded common stocks of small to mid-sized
companies. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment- management and fund-
accounting fees. The performance of the Parkstone Small Capitalization Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results. 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 Group of Funds December 31, 1996
INTERNATIONAL DISCOVERY FUND/1/
The six months ended December 31, 1996, were good ones for international stock
investors who had little or no exposure in Japan. Undergoing the inevitable
turmoil associated with the transition from a closed, centrally directed system
to a more open and free market, the Japanese economy--and the Japanese stock
market--had a very tough year. With a market weighting well below both
international indices and the average international manager, plus a few
companies that already compete internationally, the Fund was not impacted
significantly by events in Japan during the period.
Moreover, the Fund was heavily weighted in Continental European and U.K.
securities. Throughout the period, low inflation, low interest rates and modest
economic growth created a very favorable environment in the region. Improving
profit margins and attractive valuations vis-a-vis their U.S. counterparts also
increased enthusiasm for the region. As a result, our holdings here made a
substantial contribution to the Fund's performance. For the six months ended
December 31, 1996, the Fund posted a return of 4.85% (Investor A Shares)+
versus a return of 1.46% for the EAFE index,/1/ its industry benchmark.
EUROPE UNITES; JAPAN STABILIZES
After the fantastic run-up of the U.S. stock market over the past several
years, we believe that international markets now offer investors more
attractive opportunities. Specifically, we believe the prospects for
Continental Europe are very bright. During the year past, European governments
made further progress toward a unified currency. While this does create some
uncertainty in the marketplace in the short-term, the economic policies being
implemented to support the move are conducive to growth and, we believe, will
help strengthen and sustain the region's positive climate.
In addition, the potential of Japan should not be discounted. Currently, the
economy is being allowed to separate the winners from the losers as they are
gradually exposed to a competitive environment--which should greatly benefit
Japan over the long run.
As of December 31, 1996, the Fund was widely diversified, with 85 holdings in
28 different markets. Approximately 33% of the portfolio's assets were invested
in Continental Europe, 22% in Japan, 13% in the United Kingdom, and 4% in
Canada.++
As of the same date, the Fund's top five holdings were BIC (2.4%), United
Engineers (2.2%), Takeda Chemical (2.1%), TDK Corp. (2.1%) and OCE Van Grinten
(2.0%).++
- -------
/1/International investing is subject to certain risk factors such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and/or difference in accounting and other financial standards.
+ The total return, with the maximum 4.50% sales charge, was 0.14% for the
period
++ The composition of the Fund's portfolio is subject to change.
14
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(12/29/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor A* 11.04% 10.39%
- -----------------------------------------------------------
Institutional 16.56% 11.95%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** 11.32% 1.48%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(12/29/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor C*** 15.37% 11.73%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
International Discovery Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Morgan Stanley
<S> <C> <C> <C>
12/92 9,551 10,000 10,000
6/93 10,994 11,552 12,228
6/94 12,642 13,299 14,104
6/95 12,366 13,051 14,115
6/96 14,177 14,977 15,989
12/96 14,865 15,725 16,222
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Morgan Stanley
<S> <C> <C>
2/94 10,000 10,000
6/94 8,981 9,971
6/95 8,728 9,979
6/96 9,989 11,304
12/96 10,437 11,469
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C Morgan Stanley
<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
12/96 15,605 16,222
</TABLE>
The Fund's performance is compared to the Morgan Stanley Capital International
Europe, Australia and Far East (EAFE) Index, which represents the performance
of the major stock markets in those regions. The index is unmanaged and does
not reflect the deduction of fees associated with a mutual fund, such as
investment-management and fund-accounting fees. The performance of the
Parkstone International Discovery Fund reflects the deduction of fees for these
value-added services. Past performance is not predictive of future results. 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 Group of Funds December 31, 1996
BALANCED ALLOCATION FUND
While the stock market continued to climb, the crosswinds at such lofty heights
were treacherous at times during the six months ended December 31, 1996.
Sectors rotated in and out of favor rapidly. Given the environment, the
portfolio was weighted approximately even between stocks and bonds throughout
much of the period.
Moreover, given the spectacular run-up in small and mid-capitalization stocks
earlier in the year, we reduced our commitment to these sectors early in the
period. Assets were reinvested in larger- capitalization growth stocks, which--
much as we had anticipated--led the market higher in the third quarter. Our
fixed-income holdings and international stocks also contributed positively to
performance.
In the fourth quarter, however, investors narrowed their focus to large-cap
value stocks, and the portfolio gave back some of the ground gained. For the
six months ended December 31, 1996, the Fund posted a total return of 4.84%
(Investor A Shares).*
BALANCE IS THE KEY
With a compounded gain of some 68% over the past two years, it's clear that the
stock market may--and more than likely will--stop to catch its breath in the
near future. Consequently, in recent weeks, we have begun to trim our positions
in domestic stocks and expect to do more pruning in the months ahead. Some of
the assets have been reinvested in international stocks. The Fund's cash
position has also been increased slightly in an effort to increase our
flexibility.
As of December 31, 1996, 48% of the portfolio was invested in stocks, 11% in
bonds, 30% in U.S. Treasury and Agency Securities and 11% in cash and cash
equivalents. The average maturity of the Fund's holdings was 9.4 years. As of
the same date, the Fund's top five equity holdings were Hospitality Franchise
Systems (0.8%), Cardinal Health (0.7%), Service Corp. International (0.6%),
Green Tree Financial Corp. (0.6%) and Federal National Mortgage Assoc,
(0.6%).**
- -------
*The total return, with the maximum 4.50% sales charge, was 0.12% for the
period.
**The composition of the Fund's portfolio is subject to change.
16
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(1/31/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor A* 7.80% 9.85%
- -----------------------------------------------------------
Institutional 13.03% 11.02%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** 7.97% 9.13%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(1/31/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor C*** 11.98% 10.38%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Balanced Allocation Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional S&P 500 Salomon Broad Index
<S> <C> <C> <C> <C>
1/92 9,551 10,000 10,000 10,000
6/92 9,354 9,794 10,121 10,418
6/93 11,013 11,523 11,500 11,666
6/94 10,834 11,357 11,662 11,528
6/95 12,889 13,540 14,702 12,975
6/96 15,146 15,951 18,525 13,622
12/96 15,880 16,728 20,689 14,295
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B S&P 500 Salomon Broad Index
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 8,820 9,344 9,947
6/95 10,434 11,780 10,689
6/96 12,344 14,843 11,222
12/96 12,895 16,577 11,776
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C S&P 500 Salomon Broad Index
<S> <C> <C> <C>
1/92 10,000 10,000 10,000
6/92 9,694 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 15,571 18,525 13,622
12/96 16,264 20,689 14,295
</TABLE>
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 Allocation 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 Group of Funds December 31, 1996
THE FIXED INCOME FUNDS
Up, down, and up again--when all was said and done, the fixed-income markets
ended the six months ended December 31, 1996, just slightly above where they
began it. After a promising start, rates backed up modestly in anticipation of
some movement on the part of the Federal Reserve. When the Fed failed to act,
rates dropped slightly, and bond prices moved higher in October and November.
In December, however, year-end nervousness abounded, and the market gave back
some of the ground gained. Nonetheless, the fourth quarter was the year's
strongest--and the fixed- income markets ended 1996 on a positive note.
Given the environment, we approached the markets cautiously throughout the
period. Changes in rates, while small, were extremely difficult to predict with
any degree of precision. Consequently, yield enhancement, versus price
appreciation, was emphasized. As a result, as they were designed to do, the
Funds held their ground in the choppy markets of the period.
THE PARKSTONE LIMITED MATURITY FUND
While no sector was a standout performer over the course of the period,
corporate securities did better than most. Very simply, while no longer growing
at the fast pace we saw in 1995, corporate profits remained strong, and, as a
result, when the markets rallied, investors favored corporates over others
marginally. Mortgage-backed securities also made a contribution to performance.
The intermittent drops in rates during the period were not large enough to
prompt pre-payments or even a wave of pre-payment jitters. Consequently, while
not one of the better performers of the period, mortgage-backed securities more
than held their own. As a result, for the six months ended December 31, 1996,
the Fund posted a return of 3.42% (Investor A Shares).+
As of December 31, 1996, the average maturity of the fund's holdings was 2.7
years. Approximately 65% of the portfolio's assets were invested in corporate
bonds, 22% in U.S. Treasuries, 1% in Foreign Government and 12% in cash and
cash equivalents. The average credit quality of the portfolio's holdings was
AA1.++
- -------
+ The total return, with the maximum 4.00% sales charge, was -0.77% for the
period.
++ The composition of the Fund's portfolio is subject to change.
18
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* -0.32% 4.38% 6.30%
- -----------------------------------------------------------
Institutional 4.18% 5.41% 6.93%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -0.94% 2.84%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 3.09% 4.26% 6.22%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Limited Maturity Bond Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Salomon Brother
<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
12/96 16,472 17,299 18,548
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Salomon Brothers
<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
12/96 10,848 11,637
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C Salomon Brothers
<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
12/96 16,375 18,548
</TABLE>
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 Group of Funds December 31, 1996
BOND FUND
While the market ended the second half of 1996 higher than it began, the modest
gains came with few of the fireworks seen earlier in the year. Riding the waves
of the stock market's climb, the Fund's corporate holdings did marginally
better than others during the period. The Fund's holdings in the mortgage-
backed sector--primarily seasoned paper three years or more old with low pre-
payment risk--also produced predictable and positive returns. Consequently,
when mortgage-backed did slip slightly, they did not weaken to the degree that
would have prompted us to lower exposures.
Trading in bank and financial services issues also made a contribution to
performance. Also, during the period, the Federal Reserve announced it would
allow a new type of issue--capital securities--to be considered Tier 1 capital,
e.g., the high-quality investments banks may issue to meet their capital
requirements. As a result of this change in banking regulations, the Fund added
several of these securities to its portfolio, and they, too, generated positive
returns. Consequently, for the six months ended December 31, 1996, the Fund
produced a total return of 4.79% (Investor A Shares).+
At the period's end, approximately 50% of the fund's assets were invested in
corporate bonds, 46% in U.S. Treasuries and Agency securities, 2% in Foreign
Bonds, 1% in Stocks and 1% in cash and cash equivalents. The average credit
quality of the portfolio's holdings was AAA; the average maturity of the Fund's
holdings was 10.2 years.++
- -------
+ The total return, with the maximum 4.00% sales charge, was 0.56% for the
period.
++ The composition of the Fund's portfolio is subject to change.
20
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* -0.94% 5.45% 7.44%
- -----------------------------------------------------------
Institutional 3.44% 6.58% 8.15%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -1.52% 3.60%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 2.51% 5.64% 7.56%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Bond Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Salomon 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
12/96 17,984 18,972 20,200
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Salomon 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
12/96 11,083 11,776
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C Salomon 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 15,713 16,485
6/94 15,478 16,290
6/95 16,780 18,334
6/96 17,368 19,249
12/96 18,145 20,200
</TABLE>
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 Group of Funds December 31, 1996
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
As was expected, with few major or dramatic events during the period, the
intermediate government markets were relatively stable. While interest rates
did fall somewhat, the drop was not large enough to spark a wave of pre-
payments, or even raise anxiety levels dramatically in the sector. As a result,
while not one of the better performers during the period, mortgage-backed
securities more than held their own. With approximately 17% of its assets
invested in this sector and 13% in agency securities, also solid performers,
the Fund posted a return of 3.63% (Investor A Shares)+ for the six months ended
December 31, 1996.
While there was little to prompt us to pull the trigger on any one sector over
the past six months, we expect to monitor the situation very closely in the
months ahead. A significant shift in interest rates--in either direction--would
not bode well for mortgage-backed securities. Consequently, should rates make a
major move, we would expect to decrease our exposure in mortgage-backed
securities in favor of agency securities in an effort to provide our investors
with the best opportunity to earn current, dependable income.
As of December 31, 1996, the average maturity of the Fund's holdings was 4.6
years. Approximately 97% of the portfolio's assets were invested in U.S.
Treasury and Agency securities, and 3% in Corporate bonds.++
- -------
+ The total return, with the maximum 4.00% sales charge, was 0.47% for the
period.
++ The composition of the Fund's portfolio is subject to change.
22
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* -1.24% 4.29% 6.43%
- -----------------------------------------------------------
Institutional 3.19% 5.31% 7.07%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -1.80% 2.64%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 2.09% 4.23% 6.39%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
Intermediate Government Obligations Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Salomon Brothers
<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
12/96 16,644 17,474 18,875
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Salomon Brothers
<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
12/96 10,788 11,567
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C Salomon Brothers
<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
12/96 16,596 18,875
</TABLE>
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 predictive of future results. The investment return and
NAV will fluctuate, so than investor's shares, when redeemed, may be worth more
or less than the original cost.
23
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
U.S. GOVERNMENT INCOME FUND
In the relatively lackluster environment of the period, the Fund's core
holdings of seasoned, "super coupon" mortgages were once again outstanding
performers. With yields ranging between 12% and 16%, these mortgages have
experienced approximately 10 to 15 years of seasoning--and while it has been
possible to refinance them at lower rates for much of their lives, for whatever
reason, that has not happened. As a result, these securities carried very
little prepayment risk and made a substantial contribution to the Fund's
performance over the period. For the six months ended December 31, 1996, the
Fund produced a total return of 4.06% (Investor A Shares).+
In the months ahead, we hope to increase our holdings of these "super coupon"
mortgages. Others, however, have now realized just how attractive these
securities are. Consequently, these securities are now a little richer than
they were just a year ago. Nonetheless, we believe they still offer a solid
opportunity to enhance yield and will for some time to come.
As of December 31, 1996, approximately 97% of the Fund's assets were invested
in U.S. Treasury and agency securities, 2% in Corporate bonds and 1% in cash
and cash equivalents. As of the same date, the duration of the Fund's holdings
was 8.1 years.++
- -------
+ The total return, with the maximum 4.00% sales charge, was -0.16% for the
period.
++ The composition of the Fund's portfolio is subject to change.
24
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(1/31/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor A* 0.36% 4.93%
- -----------------------------------------------------------
Institutional 4.72% 6.14%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -0.10% 3.98%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(1/31/92)
- -----------------------------------------------------------
<S> <C> <C>
Investor C*** 3.83% 4.98%
- -----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred
Sales Charge
U.S. Government Income Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Salomon Broad Index
<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 11,730 12,308 12,863
12/96 12,206 12,798 13,383
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Salomon Broad Index
<S> <C> <C>
2/94 10,000 10,000
6/94 9,394 9,669
6/95 10,148 10,601
6/96 10,798 11,118
12/96 11,202 11,567
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor C Salomon 1-10
<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
12/96 12,229 13,383
</TABLE>
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 Group of Funds December 31, 1996
THE MUNICIPAL BOND FUNDS
The six months ended December 31, 1996, were challenging and, at times,
frustrating ones for municipal-bond investors. Throughout the period, the
markets moved up and down as investors reacted--and sometimes, overreacted--to
news on economic growth, voter sentiment regarding new issuance, and tax-reform
proposals. In addition, as the year progressed, the markets grew more illiquid
as few investors were willing to make decisive moves. Consequently, more often
than not throughout the period, capitalizing on opportunities to enhance yield
meant selling other positions for less than their true value.
In the months ahead, we expect the markets will continue to be somewhat choppy
until the direction of the economy and interest rates become clearer. The
environment, however, should still be a more positive one than last year when
the threat of radical tax-reform hovered over the marketplace--and dampened
enthusiasm for months.
THE MUNICIPAL BOND FUND
Given the erratic nature of the marketplace throughout the period, we made no
attempt to second-guess the direction of interest rates, or investor sentiment.
Moreover, while efforts were made to enhance yield, we continued to focus on
the long-term--and as a result, refused to compromise the value of our other
holdings to increase income in the short-term. For the six months ended
December 31, 1996, the Fund posted a total return of 3.53% (Investor A
Shares)+.
At the end of the period, over two-thirds of the Fund's assets were invested in
securities rated AAA. No more than 10% of the portfolio's assets were invested
in any one state. The average maturity of our holdings was 8.3 years.++
- -------
+ The total return, with the maximum 4.00% sales charge, was -0.57% for the
period.
++ The composition of the Fund's portfolio is subject to change.
26
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* -1.49% 4.80% 5.78%
- -----------------------------------------------------------
Institutional 2.94% 5.83% 6.41%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -2.06% 2.21%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Municipal Bond Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Lehman Brothers
<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
12/96 15,826 16,614 18,995
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Lehman Brothers
<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
12/96 10,655 11,522
</TABLE>
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 Group of Funds December 31, 1996
MICHIGAN MUNICIPAL BOND FUND
Much as we did in the national markets, we refused to compromise our value and
quality standards during the six months ended December 31, 1996. As a result,
performance lagged slightly--nonetheless, we feel that the structure of many
new issues on the market warranted our cautious approach. As a result, for the
period, the Fund posted a total return of 3.56% (Investor A Shares).*
At the end of the period, over half of the Fund's assets were invested in
securities rated AAA. The average maturity of our holdings was 8.3 YEARS.**
- -------
* The total return, with the maximum 4.00% sales charge, was -0.59% for the
period.
** The composition of the Fund's portfolio is subject to change.
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
- -----------------------------------------------------------
<S> <C> <C> <C>
Investor A* -1.24% 4.94% 5.79%
- -----------------------------------------------------------
Institutional 3.05% 5.97% 6.59%
- -----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
<TABLE>
<CAPTION>
Average Annual Total Return
As of December 31, 1996
- -----------------------------------------------------------
Since
1 Year Inception
(2/4/94)
- -----------------------------------------------------------
<S> <C> <C>
Investor B** -1.84% 2.34%
- -----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
Michigan Municipal Bond Fund
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor A Institutional Shearson 3-15
<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 13,928 14,611 15,499
12/96 14,425 15,143 16,192
</TABLE>
<TABLE>
<CAPTION>
Value of $10,000 Investment
Investor B Shearson 3-15
<S> <C> <C>
2/94 10,000 10,000
6/94 9,251 9,566
6/95 9,848 10,405
6/96 10,368 11,040
12/96 10,698 11,533
</TABLE>
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.
28
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1996
THE MONEY MARKET FUNDS*
After waiting anxiously for a rate hike throughout the first nine months of
1996, in September, investors accepted the fact that the Federal Reserve was
content to sit on the sidelines--and would be more than likely to remain there
until sometime after the election. Consequently, after fluctuating in response
to each news report and economic statistic on economic growth, interest rates
leveled off in October as anxiety dissipated. As the election season faded from
memory, of course, and the year drew to a close, waves of uncertainty again
rippled through the marketplace. As a result, the period overall was a choppy
one, with rates changing rather rapidly at times but relatively modestly.
Moving foward, we expect the environment to continue to be somewhat unsettled
until the direction of the economy is clearer. Given this, we expect to
approach the markets cautiously in the months ahead and to focus our efforts on
taking advantage of the opportunities the steepness of the yield curve offers.
. THE PRIME OBLIGATIONS FUND: As of December 31, 1996, approximately 78% of the
Fund was invested in commercial paper, and 4% was invested in overnight
securities. The average maturity was 44 days.+
. THE U.S. GOVERNMENT OBLIGATIONS FUND: As of December 31, 1996, approximately
14% of the Fund's assets were invested in overnight securities, with the
remainder invested in short-term government securities of longer maturities.
The Fund's average maturity was 48 days+.
. THE TREASURY FUND: Approximately 78% of the Fund's assets were held in
repurchase agreements as of December 31, 1996, and the average maturity of the
portfolio was 34 days.+
. THE TAX-FREE FUND++: As of December 31, 1996, the average maturity of assets
in the Fund's portfolio was 44 days+.
- -------
+ The composition of the portfolio is subject to change.
* An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. Yields will fluctuate and there can be no assurance that the Funds
will be able to maintain a stable net assets value of $1.00 per share.
++ The Fund's income may be subject to certain state and local taxes and
depending on your tax status, the federal alternative minimum tax.
29
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Statements of Assets and Liabilities
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
Prime U.S. Government
Obligations Obligations Treasury Tax-Free
Fund Fund Fund Fund
---------- --------- ---------- ---------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost $844,355; $336,383; $93,446; and
$172,710, respectively) ................................... $ 844,355 $336,383 $ 93,446 $172,710
Repurchase agreements, at cost .............................. 33,127 55,264 338,404 --
---------- --------- ---------- ---------
Total Investments ........................................... 877,482 391,647 431,850 172,710
Cash ........................................................ -- -- -- 12
Interest and dividends receivable ........................... 1,472 1,589 175 869
Receivable for capital shares issued ........................ 110 -- -- 11
Prepaid expenses and other assets ........................... 5 4 2 --
---------- --------- ---------- ---------
Total Assets ................................................ 879,069 393,240 432,027 173,602
---------- --------- ---------- ---------
Liabilities:
Dividends payable ........................................... 3,497 1,644 1,645 404
Payable to brokers for investments purchased ................ -- -- 947 --
Accrued expenses and other payables:
Investment advisory fees ................................ 9 4 5 2
Administration fees ..................................... 77 38 21 16
12b-1 fees (Investor A) ................................. 15 16 10 5
Accounting and transfer agent fees ...................... 12 12 12 8
Other ................................................... 75 44 98 38
---------- --------- ---------- ---------
Total Liabilities ........................................... 3,685 1,758 2,738 473
---------- --------- ---------- ---------
Net Assets:
Capital ..................................................... 875,392 391,488 429,312 173,111
Undistributed (distributions in excess of) net investment 1 (1) (31) --
income ....................................................
Accumulated undistributed net realized gains (losses) from
investment transactions ................................... (9) (5) 8 18
---------- --------- ---------- ---------
Net Assets .................................................. $ 875,384 $391,482 $ 429,289 $173,129
========== ========= ========== =========
Net Assets
Investor A .............................................. $ 179,307 $179,967 $ 128,880 $ 63,210
Institutional ........................................... 696,077 211,515 300,409 109,919
---------- --------- ---------- ---------
Total ............................................... $ 875,384 $391,482 $ 429,289 $173,129
========== ========= ========== =========
Outstanding units of beneficial interest (shares)
Investor A .............................................. 179,306 179,971 128,881 63,207
Institutional ........................................... 696,084 211,519 300,415 109,905
---------- --------- ---------- ---------
Total ............................................... 875,390 391,490 429,296 173,112
========== ========= ========== =========
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.
30
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
Equity Large Small
Income Capitalization Mid-Capitalization Capitalization
Fund Fund Fund Fund
------ -------------- ------------------ --------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost $321,219; $315,064; $426,329;
and $409,179, respectively) ............................ $419,437 $353,101 $ 614,339 $672,994
Repurchase agreements, at cost ........................... 13,026 28,725 27,085 42,114
--------- --------- ---------- ---------
Total Investments ........................................ 432,463 381,826 641,424 715,108
Cash ..................................................... -- 1 -- --
Interest and dividends receivable ........................ 1,383 397 167 9
Receivable from brokers for investments sold ............. -- -- 1,983 --
Receivable for capital shares issued ..................... 155 87 143 2,781
Prepaid expenses and other assets ........................ 10 44 7 18
--------- --------- ---------- ---------
Total Assets ............................................. 434,011 382,355 643,724 717,916
--------- --------- ---------- ---------
Liabilities:
Cash overdraft ........................................... -- -- -- 2
Payable for capital shares redeemed ...................... 22 10 15 88
Accrued expenses and other payables:
Investment advisory fees ............................. 12 8 17 19
Administration fees .................................. 44 40 61 69
12b-1 fees (Investor A) .............................. 19 1 16 33
12b-1 fees (Investor B) .............................. 10 1 12 23
12b-1 fees (Investor C) .............................. -- -- 1 6
Accounting and transfer agent fees ................... 48 19 79 32
Other ................................................ 68 19 118 99
--------- --------- ---------- ---------
Total Liabilities ........................................ 223 98 319 371
--------- --------- ---------- ---------
Net Assets:
Capital .................................................. 319,422 344,023 418,793 434,054
Undistributed net investment income (loss) ............... 113 8 (3,206) (4,027)
Net unrealized appreciation from investments ............. 98,218 38,037 188,010 263,815
Accumulated undistributed net realized gains from
investment transactions ................................ 16,035 189 39,808 23,703
--------- --------- ---------- ---------
Net Assets ............................................... $433,788 $382,257 $ 643,405 $717,545
========= ========= ========== =========
Net Assets
Investor A ........................................... $ 91,737 $ 3,216 $ 81,827 $163,946
Investor B ........................................... 15,681 1,805 19,722 39,299
Investor C ........................................... 303 23 1,607 10,482
Institutional ........................................ 326,067 377,213 540,249 503,818
--------- --------- ---------- ---------
Total ............................................ $433,788 $382,257 $ 643,405 $717,545
========= ========= ========== =========
Outstanding units of beneficial interest (shares)
Investor A ........................................... 5,477 264 5,328 5,701
Investor B ........................................... 939 149 1,330 1,390
Investor C ........................................... 18 2 108 370
Institutional ........................................ 19,545 30,894 34,999 17,314
--------- --------- ---------- ---------
Total ............................................ 25,979 31,309 41,765 24,775
========= ========= ========== =========
Net Asset Value -- offering and redemption price per share
Investor A ........................................... $16.75 $12.19 $15.36 $28.76
========= ========= ========== =========
Investor B *.......................................... $16.71 $12.15 $14.83 $28.27
========= ========= ========== =========
Investor C *.......................................... $16.78 $12.07 $14.93 $28.34
========= ========= ========== =========
Institutional ........................................ $16.68 $12.21 $15.44 $29.10
========= ========= ========== =========
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) ........................................... $17.54 $12.76 $16.08 $30.12
========= ========= ========== =========
</TABLE>
- -------------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
31
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Statements of Assets and Liabilities
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
Intermediate
International Balanced Limited Government
Discovery Allocation Maturity Bond Obligations
Fund Fund Fund Fund
------------ ---------- ------------- -----------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost $342,377; $122,424; $148,974;
and $230,593, respectively) ............................... $ 426,916 $134,553 $ 148,084 $230,913
Repurchase agreements, at cost .............................. -- 15,174 5,863 553
---------- --------- ---------- ---------
Total Investments ........................................... 426,916 149,727 153,947 231,466
Cash ........................................................ -- 260 -- --
Interest and dividends receivable ........................... 396 992 2,401 3,826
Receivable from brokers for investments sold ................ -- 44 -- 6,524
Receivable for capital shares issued ........................ 105 13 140 --
Prepaid expenses and other assets ........................... 15 10 7 6
---------- --------- ---------- ---------
Total Assets ................................................ 427,432 151,046 156,495 241,822
---------- --------- ---------- ---------
Liabilities:
Cash overdraft .............................................. 551 -- -- --
Payable to brokers for investments purchased ................ -- -- -- 11,782
Payable for capital shares redeemed ......................... 33 -- 14 44
Accrued expenses and other payables:
Investment advisory fees ................................ 14 3 2 4
Administration fees ..................................... 43 14 12 18
12b-1 fees (Investor A) ................................. 9 4 4 4
12b-1 fees (Investor B) ................................. 7 3 1 1
Accounting and transfer agent fees ...................... 54 32 33 38
Other ................................................... 89 43 20 378
---------- --------- ---------- ---------
Total Liabilities ........................................... 800 99 86 12,269
---------- --------- ---------- ---------
Net Assets:
Capital ..................................................... 347,996 137,816 165,884 243,708
Distributions in excess of net investment income (loss) ..... (2,056) (35) (192) (937)
Net unrealized appreciation (depreciation) from investments
and translation of assets and liabilities in foreign
currencies ................................................ 84,539 12,129 (890) 320
Accumulated undistributed net realized gains (losses) from
investment and foreign currency transactions .............. (3,847) 1,037 (8,393) (13,538)
---------- --------- ---------- ---------
Net Assets .................................................. $ 426,632 $150,947 $ 156,409 $229,553
========== ========= ========== =========
Net Assets
Investor A .............................................. $ 43,237 $ 18,307 $ 20,346 $ 20,616
Investor B .............................................. 11,382 5,177 1,602 2,036
Investor C .............................................. 699 548 15 162
Institutional ........................................... 371,314 126,915 134,446 206,739
---------- --------- ---------- ---------
Total ............................................... $ 426,632 $150,947 $ 156,409 $229,553
========== ========= ========== =========
Outstanding units of beneficial interest (shares)
Investor A .............................................. 2,943 1,483 2,139 2,115
Investor B .............................................. 791 419 168 209
Investor C .............................................. 48 45 2 17
Institutional ........................................... 25,068 10,293 14,137 21,212
---------- --------- ---------- ---------
Total ............................................... 28,850 12,240 16,446 23,553
========== ========= ========== =========
Net Asset Value -- offering and redemption price per share
Investor A .............................................. $14.69 $12.35 $9.51 $9.75
========== ========= ========== =========
Investor B *............................................. $14.38 $12.34 $9.51 $9.73
========== ========= ========== =========
Investor C *............................................. $14.71 $12.27 $9.32 $9.57
========== ========= ========== =========
Institutional ........................................... $14.81 $12.33 $9.51 $9.75
========== ========= ========== =========
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 $15.38 $12.93 $9.91 $10.16
(Investor A) ..............................................
========== ========= ========== =========
</TABLE>
- -------------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements
32
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
(UNAUDITED)
<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 $208,781; $558,769; $135,423;
and $221,577, respectively ................................ $210,235 $560,294 $139,326 $230,954
Repurchase agreements, at cost .............................. 181 1,705 -- --
-------- -------- -------- --------
Total Investments ........................................... 210,416 561,999 139,326 230,954
Cash ........................................................ 14 129 -- --
Interest and dividends receivable ........................... 2,608 7,310 2,750 3,774
Receivable from brokers for investments sold ................ 1,176 -- -- --
Receivable for capital shares issued ........................ 126 11 -- 8
Prepaid expenses and other assets ........................... 12 11 6 6
-------- -------- -------- --------
Total Assets ................................................ 214,352 569,460 142,082 234,742
-------- -------- -------- --------
Liabilities:
Cash overdraft .............................................. -- -- 14 --
Payable for capital shares redeemed ......................... 10 13 -- --
Accrued expenses and other payables:
Investment advisory fees ................................ 3 11 2 4
Administration fees ..................................... 17 45 7 12
12b-1 fees (Investor A) ................................. 12 4 2 8
12b-1 fees (Investor B) ................................. 14 3 1 2
Accounting and transfer agent fees ...................... 42 40 21 32
Other ................................................... 36 66 56 65
-------- -------- -------- --------
Total Liabilities ........................................... 134 182 103 123
-------- -------- -------- --------
Net Assets:
Capital ..................................................... 223,270 584,852 137,826 225,306
Undistributed (distributions in excess of) net investment
income .................................................... 129 (1,161) 2 (132)
Net unrealized appreciation from investments ................ 1,454 1,525 3,903 9,377
Accumulated undistributed net realized gains (losses) from
investment transactions ................................... (10,635) (15,938) 248 68
-------- -------- -------- --------
Net Assets .................................................. $214,218 $569,278 $141,979 $234,619
======== ======== ======== ========
Net Assets
Investor A .............................................. $ 55,461 $ 20,292 $ 9,083 $ 39,032
Investor B .............................................. 22,657 5,188 993 3,574
Investor C .............................................. 74 365 -- --
Institutional ........................................... 136,026 543,433 131,903 192,013
-------- -------- -------- --------
Total ............................................... $214,218 $569,278 $141,979 $234,619
======== ======== ======== ========
Outstanding units of beneficial interest (shares)
Investor A .............................................. 5,987 2,100 862 3,591
Investor B .............................................. 2,451 536 95 329
Investor C .............................................. 8 38 -- --
Institutional ........................................... 14,684 55,972 12,515 17,662
-------- -------- -------- --------
Total ............................................... 23,130 58,646 13,472 21,582
======== ======== ======== ========
Net Asset Value -- offering and redemption price per share
Investor A .............................................. $9.26 $9.66 $10.54 $10.87
======== ======== ======== ========
Investor B *............................................. $9.24 $9.68 $10.51 $10.88
======== ======== ======== ========
Investor C *............................................. $9.21 $9.64 -- --
======== ======== ======== ========
Institutional ........................................... $9.26 $9.71 $10.54 $10.87
======== ======== ======== ========
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) .............................................. $9.65 $10.06 $10.98 $11.32
======== ======== ======== ========
</TABLE>
- -------------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
33
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<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 ............................................. $22,537 $10,999 $10,327 $2,650
------- ------- ------- ------
Total Income ................................................ 22,537 10,999 10,327 2,650
------- ------- ------- ------
Expenses:
Investment advisory fees .................................... 1,638 817 771 309
Administration fees ......................................... 819 408 385 154
12b-1 fees (Investor A) ..................................... 210 241 162 61
Custodian and accounting fees ............................... 91 54 51 23
Legal and audit fees ........................................ 15 7 6 9
Trustees' fees and expenses ................................. 4 1 2 1
Transfer agent fees ......................................... 22 17 18 17
Registration and filing fees ................................ 20 17 39 17
Printing costs .............................................. 25 13 16 14
Other ....................................................... 7 4 3 1
Reverse repurchase agreements ............................... -- -- 20 --
------- ------- ------- ------
Total Expenses .............................................. 2,851 1,579 1,473 606
------- ------- ------- ------
Expenses voluntarily reduced ................................ (209) (186) (289) (52)
Net Expenses ................................................ 2,642 1,393 1,184 554
------- ------- ------- ------
Net Investment Income ....................................... 19,895 9,606 9,143 2,096
------- ------- ------- ------
Realized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions .... (3) -- 8 (10)
------- ------- ------- ------
Net realized gains (losses) from investments ................ (3) -- 8 (10)
------- ------- ------- ------
Change in net assets resulting from operations .............. $19,892 $ 9,606 $ 9,151 $2,086
======= ======= ======= ======
</TABLE>
See notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Equity Large Small
Income Capitalization Mid-Capitalization Capitalization
Fund Fund Fund Fund
------- -------------- ------------------ --------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income .................................... $ 1,891 $ 576 $ 563 $ 941
Dividend income .................................... 5,356 1,897 1,020 53
Withholding tax expense ............................ (21) -- (6) --
------- -------- -------- --------
Total Income ....................................... 7,226 2,473 1,577 994
------- -------- -------- --------
Expenses:
Investment advisory fees ........................... 2,217 1,351 3,530 3,533
Administration fees ................................ 443 338 706 707
12b-1 fees (Investor A) ............................ 108 3 92 207
12b-1 fees (Investor B) ............................ 73 7 89 168
12b-1 fees (Investor C) ............................ 1 -- 7 41
Custodian and accounting fees ...................... 77 60 114 114
Legal and audit fees ............................... 9 8 16 14
Trustees' fees and expenses ........................ 2 2 3 3
Transfer agent fees ................................ 96 28 143 154
Registration and filing fees ....................... 23 59 33 32
Printing costs ..................................... 26 19 43 40
Other .............................................. 2 1 12 8
------- -------- -------- --------
Total Expenses ..................................... 3,077 1,876 4,788 5,021
------- -------- -------- --------
Expenses voluntarily reduced ....................... -- -- (5) (3)
Net Expenses ....................................... 3,077 1,876 4,783 5,018
------- -------- --------- --------
Net Investment Income (Loss) ....................... 4,149 597 (3,206) (4,024)
------- -------- -------- --------
Realized/Unrealized Gains (Losses) from Investments:
Net realized gains from investment transactions .... 26,533 2,639 76,537 63,197
Change in unrealized appreciation (depreciation)
from investments ................................. 2,705 27,450 (50,507) (56,528)
------- -------- -------- --------
Net realized/unrealized gains from investments ..... 29,238 30,089 26,030 6,669
------- -------- -------- --------
Change in net assets resulting from operations ..... $33,387 $ 30,686 $ 22,824 $ 2,645
======= ======== ======== ========
</TABLE>
See notes to financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Limited Intermediate
International Balanced Maturity Government
Discovery Allocation Bond Obligations
Fund Fund Fund Fund
------------- ---------- -------- ------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income ............................................... $ -- $ 2,013 $5,444 $7,975
Dividend income ............................................... 2,625 657 -- --
Foreign tax withholding ....................................... (199) (11) -- --
------- ------- ------ ------
Total Income .................................................. 2,426 2,659 5,444 7,975
------- ------- ------ ------
Expenses:
Investment advisory fees ...................................... 2,435 703 577 897
Administration fees ........................................... 412 141 156 243
12b-1 fees (Investor A) ....................................... 51 22 22 28
12b-1 fees (Investor B) ....................................... 52 24 8 9
12b-1 fees (Investor C) ....................................... 3 2 -- --
Custodian and accounting fees ................................. 206 62 34 46
Legal and audit fees .......................................... 9 4 4 7
Trustees' fees and expenses ................................... 2 1 1 1
Transfer agent fees ........................................... 120 54 47 53
Registration and filing fees .................................. 20 18 16 21
Printing costs ................................................ 24 7 9 13
Other ......................................................... 3 1 1 3
------- ------- ------ ------
Total Expenses ................................................ 3,337 1,039 875 1,321
------- ------- ------ ------
Expenses voluntarily reduced .................................. (31) (177) (187) (109)
Net Expenses .................................................. 3,306 862 688 1,212
------- ------- ------ ------
Net Investment Income (Loss) .................................. (880) 1,797 4,756 6,763
------- ------- ------ ------
Realized/Unrealized Gains (Losses) from Investments
and Foreign Currencies:
Net realized gains from investment transactions and foreign
currency transactions ....................................... 8,383 9,724 364 1,856
Net change in unrealized appreciation (depreciation) from
investments and translation of assets and liabilities in
foreign currencies .......................................... 12,487 (4,892) 286 72
------- ------- ------ ------
Net realized/unrealized gains from investments ................ 20,870 4,832 650 1,928
------- ------- ------ ------
Change in net assets resulting from operations ................ $19,990 $ 6,629 $5,406 $8,691
======= ======= ====== ======
</TABLE>
See notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Michigan
Government Municipal Municipal
Income Bond Bond Bond
Fund Fund Fund Fund
---------- ------ --------- ---------
<S> <C> <C> <C> <C>
Investment Income:
Interest income ...................................................... $9,054 $20,096 $3,529 $6,086
------ ------- ------ ------
Total Income ......................................................... 9,054 20,096 3,529 6,086
------ ------- ------ ------
Expenses:
Investment advisory fees ............................................. 776 2,135 534 860
Administration fees .................................................. 210 577 144 232
12b-1 fees (Investor A) .............................................. 68 26 10 47
12b-1 fees (Investor B) .............................................. 107 24 4 19
12b-1 fees (Investor C) .............................................. -- 1 -- --
Custodian and accounting fees ........................................ 52 100 36 50
Legal and audit fees ................................................. 6 12 4 5
Trustees' fees and expenses .......................................... 1 3 1 1
Transfer agent fees .................................................. 82 63 29 47
Registration and filing fees ......................................... 21 22 31 17
Printing costs ....................................................... 13 33 10 15
Other ................................................................ 2 5 1 1
------ ------- ------ ------
Total Expenses ....................................................... 1,338 3,001 804 1,294
------ ------- ------ ------
Expenses voluntarily reduced ......................................... (358) (260) (209) (337)
Net Expenses ......................................................... 980 2,741 595 957
------ ------- ------ ------
Net Investment Income ................................................ 8,074 17,355 2,934 5,129
------ ------- ------ ------
Realized/Unrealized Gains (Losses) from Investments:
Net realized gains (losses) from investment transactions ............. (642) 7,282 270 84
Change in unrealized appreciation from investments ................... 908 3,129 1,954 3,043
------ ------- ------ ------
Net realized/unrealized gains from investments ....................... 266 10,411 2,224 3,127
------ ------- ------ ------
Change in net assets resulting from operations ....................... $8,340 $27,766 $5,158 $8,256
====== ======= ====== ======
</TABLE>
See notes to financial statements.
37
<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
----------------------- ------------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------- ---------- ------------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income .......................................... $ 19,895 $ 39,546 $ 9,606 $ 20,233
Net realized losses from investment transactions ............... (3) (6) -- --
--------- ---------- --------- -----------
Change in net assets resulting from operations ...................... 19,892 39,540 9,606 20,233
--------- ---------- --------- -----------
Distributions to Investor A shareholders:
From net investment income ..................................... (4,018) (6,950) (4,488) (9,106)
In excess of net realized gains from investment transactions ... -- (1) -- --
Distributions to Institutional shareholders:
From net investment income ..................................... (15,877) (32,595) (5,120) (11,126)
In excess of net realized gains from investment transactions ... -- (4) -- --
--------- ---------- --------- -----------
Change in net assets from shareholder distributions ................. (19,895) (39,550) (9,608) (20,232)
--------- ---------- --------- -----------
Capital Transactions:
Proceeds from shares issued .................................... 950,155 1,471,595 609,366 1,091,720
Dividends reinvested ........................................... 3,828 6,895 791 1,499
Cost of shares redeemed ........................................ (822,149) (1,483,872) (613,068) (1,095,569)
--------- ---------- --------- -----------
Change in net assets from share transactions ........................ 131,834 (5,382) (2,911) (2,350)
--------- ---------- --------- -----------
Change in net assets ................................................ 131,831 (5,392) (2,913) (2,349)
Net Assets:
Beginning of period ............................................ 743,553 748,945 394,395 396,744
--------- ---------- --------- -----------
End of period .................................................. $ 875,384 $ 743,553 $ 391,482 $ 394,395
========= ========== ========= ===========
</TABLE>
- -------------
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Treasury Fund Tax-Free Fund
------------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------- ------------ ------------ ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income ............................................ $ 9,143 $ 16,064 $ 2,096 $ 4,632
Net realized gains (losses) from investment transactions ......... 8 11 (10) 30
---------- ----------- --------- ---------
Change in net assets resulting from operations ........................ 9,151 16,075 2,086 4,662
---------- ----------- --------- ---------
Distributions to Investor A shareholders:
From net investment income ....................................... (3,026) (5,795) (649) (1,469)
From net realized gains from investment transactions ............. -- (4) -- (4)
In excess of net realized gains from investment transactions ..... -- (11) -- --
Distributions to Institutional shareholders:
From net investment income ....................................... (6,116) (10,269) (1,447) (3,163)
From net realized gains from investment transactions ............. -- (7) -- (8)
In excess of net realized gains from investment transactions ..... -- (20) -- --
---------- ----------- --------- ---------
Change in net assets from shareholder distributions ................... (9,142) (16,106) (2,096) (4,644)
---------- ----------- --------- ---------
Capital Transactions:
Proceeds from shares issued ...................................... 855,634 2,002,575 190,349 376,346
Dividends reinvested ............................................. 285 493 366 820
Cost of shares redeemed .......................................... (808,778) (1,918,521) (165,443) (372,907)
---------- ----------- --------- ---------
Change in net assets from share transactions .......................... 47,141 84,547 25,272 4,259
---------- ----------- --------- ---------
Change in net assets .................................................. 47,150 84,516 25,262 4,277
Net Assets:
Beginning of period .............................................. 382,139 297,623 147,867 143,590
---------- ----------- --------- ---------
End of period .................................................... $ 429,289 $ 382,139 $ 173,129 $ 147,867
========== =========== ========= =========
</TABLE>
- -------------
See notes to financial statements.
39
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Equity Income Large Capitalization
Fund Fund
----------------------- ---------------------------
Six Months Year Six Months December 28,
ended ended ended 1995 to
December 31, June 30, December 31, June 30,
1996 1996 1996 1996(a)
------------ -------- ------------ --------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income ........................................ $ 4,149 $ 8,736 $ 597 $ 338
Net realized gains (losses) from investment transactions ..... 26,533 45,001 2,639 (74)
Net change in unrealized appreciation from investments ....... 2,705 42,614 27,450 10,587
-------- --------- --------- ---------
Change in net assets resulting from operations .................... 33,387 96,351 30,686 10,851
-------- --------- --------- ---------
Distributions to Investor A shareholders:
From net investment income ................................... (779) (1,414) (2) (1)
From net realized gains from investment transactions ......... (8,386) (2,095) (18) --
Distributions to Investor B shareholders:
From net investment income ................................... (80) (104) -- --
In excess of net investment income ........................... -- (7) -- --
From net realized gains from investment transactions ......... (1,419) (244) (12) --
Distributions to Investor C shareholders:
From net investment income ................................... (1) (1) -- --
From net realized gains from investment transactions ......... (25) (2) -- --
Distributions to Institutional shareholders:
From net investment income ................................... (3,688) (7,170) (620) (304)
From net realized gains from investment transactions ......... (32,123) (9,595) (2,346) --
-------- --------- --------- ---------
Change in net assets from shareholder distributions ............... (46,501) (20,632) (2,998) (305)
-------- --------- --------- ---------
Capital Transactions:
Proceeds from shares issued .................................. 50,932 50,436 98,159 270,745
Dividends reinvested ......................................... 17,450 7,352 2,381 229
Cost of shares redeemed ...................................... (53,948) (125,422) (22,612) (4,879)
-------- --------- --------- ---------
Change in net assets from share transactions ...................... 14,434 (67,634) 77,928 266,095
-------- --------- --------- ---------
Change in net assets .............................................. 1,320 8,085 105,616 276,641
Net Assets:
Beginning of period .......................................... 432,468 424,383 276,641 --
-------- --------- --------- ---------
End of period ................................................ $433,788 $ 432,468 $ 382,257 $ 276,641
======== ========= ========= =========
</TABLE>
- -------------
(a) Period from commencement of operations.
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Mid-Capitalization Small Capitalization
Fund Fund
---------------------- ------------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------ ---------- ------------ -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment loss ............................................... $ (3,206) $ (5,788) $ (4,024) $ (5,835)
Net realized gains from investment transactions ................... 76,537 176,714 63,197 97,422
Net change in unrealized appreciation (depreciation) from
investments ..................................................... (50,507) 44,007 (56,528) 159,250
--------- --------- --------- ---------
Change in net assets resulting from operations ......................... 22,824 214,933 2,645 250,837
--------- --------- --------- ---------
Distributions to Investor A shareholders:
From net realized gains from investment transactions .............. (23,501) (1,837) (25,438) (11,580)
Distributions to Investor B shareholders:
From net investment income ........................................ -- -- (2) --
From net realized gains from investment transactions .............. (5,643) (333) (5,901) (1,972)
Distributions to Investor C shareholders:
From net realized gains from investment transactions .............. (458) (14) (1,578) (67)
Distributions to Institutional shareholders:
From net realized gains from investment transactions .............. (167,629) (26,657) (78,724) (52,159)
--------- --------- --------- ---------
Change in net assets from shareholder distributions .................... (197,231) (28,841) (111,643) (65,778)
--------- --------- --------- ---------
Capital Transactions:
Proceeds from shares issued ....................................... 124,005 195,102 604,503 914,251
Dividends reinvested .............................................. 140,423 20,862 85,366 47,118
Cost of shares redeemed ........................................... (180,299) (401,722) (615,269) (831,418)
--------- --------- --------- ---------
Change in net assets from share transactions ........................... 84,129 (185,758) 74,600 129,951
--------- --------- --------- ---------
Change in net assets ................................................... (90,278) 334 (34,398) 315,010
Net Assets:
Beginning of period ............................................... 733,683 733,349 751,943 436,933
--------- --------- --------- ---------
End of period ..................................................... $ 643,405 $ 733,683 $ 717,545 $ 751,943
========= ========= ========= =========
</TABLE>
- -------------
See notes to financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
International Balanced
Discovery Fund Allocation Fund
---------------------------------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------- -------- ------------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income (loss) ........................................ $ (880) $ 243 $ 1,797 $ 2,996
Net realized gains from investment and foreign currency transactions 8,383 9,372 9,724 12,212
Net change in unrealized appreciation (depreciation) from
investments and translation of assets and liabilities in foreign
currencies ........................................................ 12,487 38,177 (4,892) 3,923
---------- ---------- ---------- ---------
Change in net assets resulting from operations ........................... 19,990 47,792 6,629 19,131
---------- ---------- ---------- ---------
Distributions to Investor A shareholders:
From net investment income .......................................... -- -- (247) (338)
In excess of net investment income .................................. -- (30) -- --
From net realized gains from investment and foreign currency
transactions ...................................................... -- -- (1,958) (668)
Distributions to Investor B shareholders:
From net investment income .......................................... -- -- (44) (41)
From net realized gains from investment and foreign currency
transactions ...................................................... -- -- (546) (119)
Distributions to Investor C shareholders:
From net investment income .......................................... -- -- (5) (4)
In excess of net investment income .................................. -- (1) -- --
From net realized gains from investment and foreign currency
transactions ...................................................... -- -- (56) (9)
Distributions to Institutional shareholders:
From net investment income .......................................... (109) (243) (1,865) (2,494)
In excess of net investment income .................................. -- (528) -- --
From net realized gains from investment and foreign currency
transactions ...................................................... -- -- (13,278) (4,422)
---------- ---------- ---------- ---------
Change in net assets from shareholder distributions ...................... (109) (802) (17,999) (8,095)
---------- ---------- ---------- ---------
Capital Transactions:
Proceeds from shares issued ......................................... 104,268 291,763 27,292 42,664
Dividends reinvested ................................................ 62 444 14,818 6,646
Cost of shares redeemed ............................................. (111,212) (230,102) (15,023) (28,664)
---------- ---------- ---------- ---------
Change in net assets from share transactions ............................. (6,882) 62,105 27,087 20,646
---------- ---------- ---------- ---------
Change in net assets ..................................................... 12,999 109,095 15,717 31,682
Net Assets:
Beginning of period ................................................. 413,633 304,538 135,230 103,548
---------- ---------- ---------- ---------
End of period ....................................................... $ 426,632 $ 413,633 $ 150,947 $ 135,230
========== ========== ========== =========
</TABLE>
- -------------
See notes to financial statements.
- ----
42
- ----
<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
------------------------ -----------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
----------- ----------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income ................................................. $ 4,756 $ 9,848 $ 6,763 $ 15,345
Net realized gains (losses) from investment transactions .............. 364 (1,938) 1,856 80
Net change in unrealized appreciation (depreciation) from investments . 286 (764) 72 (4,771)
-------- -------- -------- --------
Change in net assets resulting from operations ............................. 5,406 7,146 8,691 10,654
-------- -------- -------- --------
Distributions to Investor A shareholders:
From net investment income ............................................ (519) (1,014) (665) (1,390)
In excess of net investment income .................................... -- (40) -- (69)
Tax return of capital ................................................. -- (63) -- (22)
Distributions to Investor B shareholders:
From net investment income ............................................ (43) (57) (49) (68)
In excess of net investment income .................................... -- (1) -- (3)
Tax return of capital ................................................. -- (4) -- (1)
Distributions to Investor C shareholders:
From net investment income ............................................ -- -- (3) (3)
Distributions to Institutional shareholders:
From net investment income ............................................ (4,386) (8,776) (6,983) (13,884)
In excess of net investment income .................................... -- (290) -- (691)
Tax return of capital ................................................. -- (535) -- (215)
-------- -------- -------- --------
Change in net assets from shareholder distributions ........................ (4,948) (10,780) (7,700) (16,346)
-------- -------- -------- --------
Capital Transactions:
Proceeds from shares issued ........................................... 25,895 33,795 15,286 50,593
Dividends reinvested .................................................. 2,277 4,860 2,361 4,873
Cost of shares redeemed ............................................... (24,850) (43,995) (39,275) (77,260)
-------- -------- -------- --------
Change in net assets from share transactions ............................... 3,322 (5,340) (21,628) (21,794)
-------- -------- -------- --------
Change in net assets ....................................................... 3,780 (8,974) (20,637) (27,486)
Net Assets:
Beginning of period ................................................... 152,629 161,603 250,190 277,676
-------- -------- -------- --------
End of period ......................................................... $156,409 $152,629 $229,553 $250,190
======== ======== ======== ========
</TABLE>
- -------------
See notes to financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Government
Income Fund Bond Fund
--------------------- -----------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------ -------- ------------ ----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income ................................................ $ 8,074 $ 14,579 $ 17,355 $ 32,983
Net realized gains (losses) from investment transactions ............. (642) (3,968) 7,282 6,686
Net change in unrealized appreciation (depreciation) from investments 908 389 3,129 (15,480)
--------- -------- -------- ---------
Change in net assets resulting from operations ............................ 8,340 11,000 27,766 24,189
--------- -------- -------- ---------
Distributions to Investor A shareholders:
From net investment income ........................................... (2,030) (3,573) (644) (1,061)
In excess of net investment income ................................... -- -- -- (15)
Tax return of capital ................................................ -- (440) -- --
Distributions to Investor B shareholders:
From net investment income ........................................... (692) (879) (123) (131)
From net realized gains from investment transactions ................. -- -- -- (2)
Tax return of capital ................................................ -- (108) -- --
Distributions to Investor C shareholders:
From net investment income ........................................... (3) (2) (7) (6)
Distributions to Institutional shareholders:
From net investment income ........................................... (5,220) (8,525) (17,955) (31,785)
In excess of net investment income ................................... -- -- -- (443)
Tax return of capital ................................................ -- (1,052) -- --
--------- -------- -------- ---------
Change in net assets from shareholder distributions ....................... (7,945) (14,579) (18,729) (33,443)
--------- -------- -------- ---------
Capital Transactions:
Proceeds from shares issued .......................................... 35,085 65,682 48,905 136,614
Dividends reinvested ................................................. 2,026 3,922 13,498 23,823
Cost of shares redeemed .............................................. (25,779) (33,163) (76,309) (105,155)
--------- -------- -------- ---------
Change in net assets from share transactions .............................. 11,332 36,441 (13,906) 55,282
--------- -------- -------- ---------
Change in net assets ...................................................... 11,727 32,862 (4,869) 46,028
Net Assets:
Beginning of period .................................................. 202,491 169,629 574,147 528,119
--------- -------- -------- ---------
End of period ........................................................ $ 214,218 $202,491 $569,278 $ 574,147
========= ======== ======== =========
</TABLE>
- -------------
See notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
Municipal Bond Michigan Municipal
Fund Bond Fund
--------------------- ----------------------
Six Months Year Six Months Year
ended ended ended ended
December 31, June 30, December 31, June 30,
1996 1996 1996 1996
------------ -------- ------------ ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
From Investment Activities:
Operations:
Net investment income ................................................. $ 2,934 $ 5,946 $ 5,129 $ 10,082
Net realized gains from investment transactions ....................... 270 1,577 84 1,191
Net change in unrealized appreciation (depreciation) from investments . 1,954 (985) 3,043 (324)
--------- --------- --------- ---------
Change in net assets resulting from operations ............................. 5,158 6,538 8,256 10,949
--------- --------- --------- ---------
Distributions to Investor A shareholders:
From net investment income ............................................ (164) (394) (806) (1,652)
From net realized gains from investment transactions .................. (41) -- (125) (125)
Distributions to Investor B shareholders:
From net investment income ............................................ (14) (18) (59) (107)
From net realized gains from investment transactions .................. (1) -- (11) (9)
Distributions to Institutional shareholders:
From net investment income ............................................ (2,834) (5,465) (4,419) (8,321)
From net realized gains from investment transactions .................. (635) (4) (625) (591)
--------- --------- --------- ---------
Change in net assets from shareholder distributions ........................ (3,689) (5,881) (6,045) (10,805)
--------- --------- --------- ---------
Capital Transactions:
Proceeds from shares issued ........................................... 16,650 37,655 21,785 41,685
Dividends reinvested .................................................. 369 654 1,328 2,574
Cost of shares redeemed ............................................... (17,606) (44,478) (16,142) (35,178)
--------- --------- --------- ---------
Change in net assets from share transactions ............................... (587) (6,169) 6,971 9,081
--------- --------- --------- ---------
Change in net assets ....................................................... 882 (5,512) 9,182 9,225
Net Assets:
Beginning of period ................................................... 141,097 146,609 225,437 216,212
========= ========= ========= =========
End of period ......................................................... $ 141,979 $ 141,097 $ 234,619 $ 225,437
========= ========= ========= =========
</TABLE>
- -------------
See notes to financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Prime Obligations Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- --------- ------------------------------------ ----------
<S> <C> <C>
Bankers Acceptances (0.5%):
Financial Services (0.5%):
5,000 Wachovia Bank, 5.31%, 3/11/97....... $ 4,949
---------
Total Bankers Acceptances 4,949
---------
Commercial Paper (78.4%):
Agriculture (1.1%):
5,000 Cargill Financial Services Corp.,
5.41%, 2/3/97..................... 4,975
5,000 Monsanto, Co., 5.32%, 2/18/97....... 4,965
---------
9,940
---------
Automotive (1.6%):
5,000 Nippondenso America, 5.35%, 1/10/97. 4,993
5,000 Nippondenso America, 5.33%, 1/28/97. 4,980
4,500 Nippondenso America, 5.33%, 2/24/97. 4,464
---------
14,437
---------
Banking (0.7%):
1,000 Den Danske, 5.90%, 1/27/97.......... 996
5,000 Fleet Funding, 5.57%, 1/29/97....... 4,978
---------
5,974
---------
Banking & Financial Services (4.5%):
5,000 ABN AMRO, 5.43%, 2/28/97............ 4,956
5,000 ABN AMRO, 5.44%, 4/1/97............. 4,932
5,000 Bank of America, 5.38%, 2/5/97...... 4,974
5,000 Bank of America, 5.42%, 2/5/97...... 4,974
5,000 Bank of America, 5.27%, 3/19/97..... 4,944
5,000 Downey Savings & Loan, 5.50%, 3/4/97 4,953
5,000 First Chicago Financial Corp.,5.38%,
1/29/97........................... 4,979
5,000 First Chicago Financial Corp.,5.45%,
3/20/97........................... 4,941
---------
39,653
---------
Building Materials (0.6%):
5,000 Guardian Industries, 5.33%, 1/7/97.. 4,996
---------
Chemicals (1.7%):
5,000 Akzo Nobel, 5.32%, 1/31/97.......... 4,978
5,000 Akzo Nobel, 5.32%, 4/28/97.......... 4,914
5,000 Great Lakes Chemical, 5.40%, 1/17/97 4,988
---------
14,880
---------
Construction (0.6%):
5,000 Cemex, 5.32%, 3/5/97................ 4,953
---------
Consumer Goods & Services (1.7%):
5,000 American Brands, Inc., 5.58%,
1/13/97........................... 4,991
5,000 American Brands, Inc., 5.36%,
1/15/97........................... 4,990
5,000 American Brands, Inc., 5.58%,
1/24/97........................... 4,982
---------
14,963
---------
Commercial Paper, continued:
Containers & Packaging (1.1%):
5,000 Rubbermaid, Inc., 5.35%, 1/28/97.... $ 4,980
5,000 Rubbermaid, Inc., 5.30%, 2/25/97.... 4,960
---------
9,940
---------
Diversified (4.6%):
5,000 Daimler Benz Corp., 5.42%, 1/8/97... 4,995
5,000 Daimler Benz Corp., 5.40%, 1/13/97.. 4,991
5,000 Daimler Benz Corp., 5.33%, 2/5/97... 4,974
5,000 Pacific Dunlop Holdings, 5.33%,
2/21/97........................... 4,962
5,000 Pacific Dunlop Holdings, 5.32%,
3/31/97........................... 4,934
5,000 Rexam, 5.43%, 1/10/97............... 4,993
5,264 Rexam, 5.65%, 2/7/97................ 5,233
5,000 Toshiba Corp., 5.38%, 3/14/97....... 4,946
---------
40,028
---------
Education & Research (0.6%):
5,000 Massachusetts College of Pharmacy,
5.36%, 3/6/97..................... 4,952
---------
Electric Utility (1.8%):
4,250 Houston Power & Light, 7.63%, 3/1/97 4,261
5,000 Mitsubishi Electric, 5.35%, 1/22/97. 4,984
1,700 National Rural Utilities, 5.75%,
1/24/97........................... 1,694
5,000 National Rural Utilities, 5.30%,
2/13/97........................... 4,968
---------
15,907
---------
Electrical & Electronic (2.8%):
5,000 Avnet, 5.33%, 1/22/97............... 4,984
5,000 Avnet, 5.50%, 2/13/97............... 4,967
4,700 Sharp Electronics, 5.32%, 3/21/97... 4,645
5,000 Sharp Electronics, 5.32%, 3/21/97... 4,942
5,000 Siemens Corp., 5.30%, 2/4/97........ 4,975
---------
24,513
---------
Financial Services (23.9%):
5,000 Abbey National, 5.42%, 3/26/97...... 4,937
5,000 Aig Funding, 5.53%, 1/31/97......... 4,977
5,000 American Express, 5.28%, 5/12/97.... 4,904
5,000 Atlas Copco, 5.45%, 1/31/97......... 4,977
5,000 Banque International Luxembourg
N.A., 5.29%, 2/19/97.............. 4,964
5,000 Banque International Luxembourg
N.A., 5.32%, 2/25/97.............. 4,959
5,000 Bear Stearns Cos., Inc., 5.43%,
1/15/97........................... 4,989
5,000 BTR Dunlop Finance, Inc., 5.43%,
1/27/97........................... 4,980
5,000 BTR Dunlop Finance, Inc., 5.37%,
2/18/97........................... 4,964
5,000 Copley Pharmaceutical, 5.48%,
1/13/97........................... 4,991
5,000 Cregem N.A., Inc., 5.46%, 1/10/97... 4,993
5,000 Cregem N.A., Inc., 5.30%, 2/13/97... 4,968
5,000 Cregem N.A., Inc., 5.37%, 2/24/97... 4,960
5,000 Dean Witter Discover, 5.38%, 1/15/97 4,990
</TABLE>
Continued
46
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Prime Obligations Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- --------- ------------------------------------ ----------
<S> <C> <C>
Commercial Paper, continued:
Financial Services, continued:
4,000 Eksportfinans, 5.32%, 3/18/97....... $ 3,955
5,140 Eksportfinans, 5.44%, 3/27/97....... 5,074
5,000 Ford Motor Credit, Corp., 5.32%,
1/21/97........................... 4,985
5,000 Ford Motor Credit, Corp., 5.44%,
1/23/97........................... 4,983
5,000 Ford Motor Credit, Corp., 5.48%,
3/17/97........................... 4,943
5,000 Franklin Resources, 5.37%, 2/3/97... 4,975
5,000 General Electric Capital Corp.,
5.58%, 1/27/97.................... 4,980
5,000 General Electric Capital Corp.,
5.31%, 1/28/97.................... 4,980
5,000 General Electric Capital Corp.,
5.70%, 5/30/97.................... 4,882
10,000 General Motors Acceptance Corp.,
5.40%, 4/7/97..................... 9,856
5,000 Goldman Sachs, 5.30%, 5/5/97........ 4,909
5,000 Goldman Sachs, 5.27%, 5/29/97....... 4,892
5,000 Island Finance Puerto Rico, 5.49%,
2/24/97........................... 4,959
5,000 Island Financial Puerto Rico,
5.32%, 3/12/97.................... 4,948
5,000 Merrill Lynch, 5.62%, 1/7/97........ 4,995
3,000 Merrill Lynch, 5.54%, 1/9/97........ 2,996
5,000 Merrill Lynch, 5.38%, 1/15/97....... 4,990
5,000 Merrill Lynch, 5.45%, 1/23/97....... 4,983
5,000 Merrill Lynch, 5.34%, 2/12/97....... 4,969
5,000 Nomura Holdings America, Inc.,
5.50%, 4/7/97..................... 4,927
4,000 Pemex (Local), 5.45%, 4/21/97....... 3,933
5,073 Takeda Financial USA, 5.65%, 3/20/97 5,011
5,000 Toshiba International Financial,
5.35%, 4/15/97.................... 4,923
5,000 TransAmerica Financial Co., 5.50%,
2/28/97........................... 4,956
5,000 TransAmerica Financial Co., 5.28%,
4/23/97........................... 4,918
15,000 UBS Financial, 8.00%, 1/2/97........ 14,997
---------
209,472
---------
Food Products (0.6%):
5,000 Campbell Soup Co., 5.38%, 7/9/97.... 4,859
---------
Foreign Banking & Financial Services (10.3%):
5,000 Anz Delaware, 5.34%, 4/16/97........ 4,922
5,000 Anz, Delaware, 5.62%, 2/5/97........ 4,973
5,000 Bank of Scotland, 5.37%, 2/24/97.... 4,960
5,000 Bank of Scotland, 5.31%, 2/25/97.... 4,959
5,000 Den Danske, 5.38%, 2/20/97.......... 4,963
1,450 Kingdom of Sweden, 5.60%, 2/7/97.... 1,442
5,000 Kingdom of Sweden, 5.38%, 2/10/97... 4,970
5,000 Kredietbank N.A. Financial, 5.47%,
1/3/97............................ 4,998
5,000 Kredietbank N.A. Financial, 5.44%,
2/7/97............................ 4,972
5,000 Kredietbank N.A. Financial, 5.35%,
3/24/97........................... 4,939
5,000 Nordbanken, 5.53%, 1/2/97........... 4,999
4,640 Nordbanken, 5.50%, 3/7/97........... 4,594
Foreign Banking & Financial Services, continued:
5,000 Nordbanken, 5.27%, 4/21/97.......... 4,919
5,000 Societe Generale, 5.28%, 2/14/97.... 4,968
5,000 Societe Generale, 5.34%, 4/11/97.... 4,926
5,000 Societe Generale, 5.32%, 4/28/97.... 4,914
5,000 Svenska Handlesbanken, 5.58%,
1/16/97........................... 4,988
5,000 Svenska Handlesbanken, 5.38%,
2/20/97........................... 4,963
5,000 Svenska Handlesbanken, 5.33%,
3/25/97........................... 4,939
---------
90,308
---------
Governments (Foreign) (2.3%):
5,000 Cades, 5.30%, 6/10/97............... 4,882
5,000 Province of Quebec, 5.35%, 1/28/97.. 4,980
5,000 Province of Quebec, 5.47%, 3/6/97... 4,951
5,000 Venantius, 5.32%, 3/4/97............ 4,954
---------
19,767
---------
Insurance (4.0%):
5,000 Allianz of America, 5.32%, 1/28/97.. 4,980
5,000 Allianz of America, 5.33%, 2/11/97.. 4,970
5,000 Allianz of America, 5.34%, 3/12/97.. 4,948
5,000 International Nederladen, 5.33%,
1/30/97........................... 4,979
10,000 Prudential Funding, 5.43%, 1/8/97... 9,990
5,000 SAFECO Credit Corp., 5.35%, 4/10/97. 4,926
---------
34,793
---------
Machinery & Equipment (1.9%):
5,000 Caterpillar Financial Services,
5.62%, 1/16/97.................... 4,988
5,000 Caterpillar Financial Services,
5.29%, 5/15/97.................... 4,902
1,100 Dover Corp., 5.90%, 1/17/97......... 1,097
6,000 Halliburton, 5.65%, 1/28/97......... 5,975
---------
16,962
---------
Materials (1.3%):
1,800 Aga Capital Corp., 5.50%, 1/10/97... 1,798
5,000 Aga Capital Corp., 0.00%, 1/13/97... 4,991
5,000 Aga Capital Corp., 5.32%, 2/19/97... 4,964
---------
11,753
---------
Natural Resources (1.5%):
5,000 Colonial Pipeline, 5.45%, 1/13/97... 4,991
4,262 South Carolina Fuel, 5.85%, 1/23/97. 4,247
3,500 U.S. Borax & Chemical, 5.34%,
4/28/97........................... 3,439
---------
12,677
---------
Office Equipment & Services (0.8%):
5,000 IBM Corp., 5.29%, 2/13/97........... 4,968
2,500 Pitney Bowes Credit Corp., 5.29%,
4/11/97........................... 2,463
---------
7,431
---------
Oil & Gas Exploration Products & Services (3.3%):
5,000 Burmah Castrol Oil, 5.51%, 3/18/97.. 4,942
</TABLE>
Continued
47
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Prime Obligations Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- --------- ------------------------------------ ----------
<S> <C> <C>
Commercial Paper, continued:
Oil & Gas Exploration Products & Services, continued:
5,000 Burmah Castrol Oil, 5.35%, 4/21/97.. $ 4,918
5,000 Explorer Pipeline, 5.35%, 1/22/97... 4,984
6,000 Explorer Pipeline, 5.45%, 2/18/97... 5,956
4,000 Explorer Pipeline, 5.60%, 2/25/97... 3,966
4,000 Laclede Gas, 5.32%, 1/17/97......... 3,991
---------
28,757
---------
Pharmaceuticals (0.6%):
5,000 Pfizer, 5.44%, 3/5/97............... 4,952
---------
Telecommunications (1.1%):
5,000 Southern New England
Telecommunications, 5.60%, 2/4/97. 4,974
5,000 Southwest Bell, 5.55%, 2/5/97....... 4,973
---------
9,947
---------
Trading (3.4%):
5,000 Mitsubishi International, 6.25%,
1/10/97........................... 4,992
5,000 Mitsubishi International, 5.40%,
3/11/97........................... 4,948
5,000 Mitsubishi International, 5.38%,
3/27/97........................... 4,936
5,000 Mitsui & Co., USA Inc., 5.45%,
1/24/97........................... 4,983
5,000 Mitsui & Co., USA Inc., 5.34%,
2/6/97............................ 4,973
5,000 Mitsui & Co., USA Inc., 5.47%,
3/25/97........................... 4,937
---------
29,769
---------
Total Commercial Paper 686,583
---------
Corporate Bonds (12.6%):
Banking (2.3%):
10,000 Comerica Bank, 5.52%, 6/6/97*....... 10,000
10,000 PNC Bank, NA, 5.58%, 4/1/97*........ 9,998
---------
19,998
---------
Financial & Insurance (2.3%):
5,000 Smith Barney, 6.00%, 3/15/97........ 5,001
10,000 SMM Trust 1996, 5.64%, 3/26/97*..... 10,000
5,000 SMM Trust 1996, 5.71%, 5/29/97*..... 5,000
---------
20,001
---------
Financial Services (6.9%):
7,000 Bear Stearns Cos. Inc., 5.50%,
2/6/97*........................... 7,000
5,000 Bear Stearns Cos. Inc., 5.64%,
6/10/97*.......................... 5,000
5,000 Bear Stearns Cos. Inc., 5.47%,
11/19/97.......................... 5,000
10,000 Dean Witter Discover, 5.91%, 2/3/97* $ 10,002
1,000 Dean Witter Discover, 5.80%,
2/24/97*.......................... 1,000
7,000 General Electric Capital Corp.,
5.42%, 5/12/97*................... 6,997
25,000 Morgan Stanley, 7.13%, 1/10/97*..... 24,999
---------
59,998
---------
Insurance (1.1%):
10,000 All State Funding, 5.63%, 12/1/97*.. 10,000
---------
Total Corporate Bonds 109,997
---------
Medium Term Notes (1.5%):
Banking (1.1%):
10,000 Abbey National, 5.08%, 2/27/97...... 10,000
---------
Financial Services (0.4%):
3,000 General Electric Capital Corp.,
6.89%, 4/14/97.................... 3,011
---------
Total Medium Term Notes 13,011
---------
U.S. Government Agencies (2.8%):
Federal Farm Credit Bank
10,000 5.37%, 6/19/97...................... 10,000
Federal Home Loan Bank
10,000 5.32%, 8/8/97....................... 9,998
Student Loan Mortgage Assoc.
5,000 5.32%, 7/18/97...................... 4,999
---------
Total U.S. Government Agencies 24,997
---------
U.S. Treasury Bills (0.6%):
5,000 8/21/97............................. 4,818
---------
Total U.S. Treasury Bills 4,818
---------
Total Investments 844,355
---------
Repurchase Agreements (3.8%):
33,127 Lehman Brothers, 7.11%, 1/2/97
(Collateralized by 163,085 U.S.
Government Treasury Strip, 8.75%,
5/15/20, market value $33,790).... 33,127
---------
Total Repurchase Agreements 33,127
---------
Total (Cost--$877,482)(a) $877,482
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $875,384.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity 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 December 31, 1996.
See notes to financial statements.
- ----
48
- ----
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Obligations Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- -------- ------------------------------------- ---------
<S> <C> <C>
U.S. Government Agencies (85.9%):
Federal Farm Credit Bank:
$ 895 5.30%, 1/9/97....................... $ 894
5,000 5.47%, 1/27/97...................... 4,985
5,000 5.22%, 4/28/97...................... 4,915
5,000 5.18%, 5/28/97...................... 4,894
10,000 5.37%, 6/13/97*..................... 10,000
Federal Home Loan Bank:
5,000 5.22%, 1/8/97....................... 4,995
3,145 5.26%, 1/29/97...................... 3,144
5,000 5.48%, 1/29/97...................... 4,979
5,000 5.33%, 2/3/97....................... 4,976
5,000 5.33%, 2/4/97....................... 4,975
5,000 5.20%, 2/14/97...................... 4,968
5,000 5.49%, 2/21/97...................... 4,961
5,000 5.34%, 2/26/97...................... 4,958
10,000 5.27%, 2/28/97...................... 10,000
5,000 5.24%, 3/18/97...................... 4,945
2,050 5.19%, 5/29/97...................... 2,006
10,000 5.32%, 8/8/97....................... 9,998
5,600 6.00%, 8/12/97...................... 5,602
5,000 6.01%, 8/13/97...................... 4,839
5,000 5.48%, 12/16/97..................... 4,999
Federal Home Loan Mortgage Corp.:
10,000 5.27%, 1/14/97...................... 9,981
305 5.30%, 1/17/97...................... 304
5,000 5.60%, 1/24/97...................... 4,982
15,000 5.21%, 1/30/97...................... 14,937
5,000 5.23%, 2/3/97....................... 4,976
10,000 5.21%, 2/10/97...................... 9,942
10,000 5.24%, 2/14/97...................... 9,936
5,000 5.30%, 2/18/97...................... 4,965
5,000 5.22%, 2/19/97...................... 4,964
5,000 5.24%, 2/26/97...................... 4,959
5,000 5.22%, 3/5/97....................... 4,954
5,000 5.18%, 3/18/97...................... 4,945
5,000 5.25%, 4/1/97....................... 4,934
5,000 5.22%, 5/6/97....................... 4,909
Federal National Mortgage Assoc.:
5,000 5.30%, 1/8/97....................... 4,995
5,000 5.51%, 1/13/97...................... 4,991
5,000 5.24%, 1/16/97...................... 4,989
5,200 5.30%, 1/17/97...................... 5,187
2,000 7.86%, 1/21/97...................... 2,003
5,000 5.29%, 1/27/97...................... 4,981
5,000 5.26%, 2/4/97....................... 4,975
5,000 5.26%, 2/19/97...................... 4,964
5,000 5.23%, 2/26/97...................... 4,959
5,000 5.21%, 2/27/97...................... 4,959
5,000 5.24%, 3/12/97...................... 4,949
10,000 5.43%, 3/17/97...................... 9,888
5,000 5.29%, 3/20/97...................... 4,943
5,000 5.36%, 3/31/97...................... 4,934
10,000 5.25%, 4/11/97...................... 9,854
5,000 5.26%, 4/17/97...................... 4,923
5,000 5.24%, 4/21/97...................... 4,920
5,000 5.20%, 4/29/97...................... 4,915
5,000 5.21%, 5/9/97....................... 4,907
4,270 5.27%, 6/9/97....................... 4,171
10,000 5.42%, 8/1/97....................... 9,998
5,000 5.45%, 9/12/97...................... 4,998
Student Loan Marketing Assoc.:
10,000 5.32%, 7/18/97...................... 9,998
10,250 5.56%, 1/21/98...................... 10,261
--------
Total U.S. Government Agencies 336,383
--------
Total Investments 336,383
--------
Repurchase Agreements (14.1%):
25,000 Greenwich Capital, 7.00%, 12/31/99
(Collateralized by 25,222 U.S.
Government securities,
7.50%-8.50%, 8/1/26-10/1/26,
market value--$25,503)............. 25,000
5,264 Lehman Brothers, 7.11%, 1/2/97
(Collateralized by 25,915 U.S.
Government Treasury Strip, 8.75%,
5/15/20, market value--$5,369)..... 5,264
25,000 Paine Webber, 5.50%, 1/3/97
(Collateralized by 25,415 Federal
National Mortgage Assoc., 6.63%,
12/25/26, market value--$25,504)... 25,000
--------
Total Repurchase Agreements 55,264
--------
Total (Cost--$391,647)(a) $391,647
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $391,482.
* 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 December 31, 1996.
(a) Cost for federal income tax and financial reporting purposes are the same.
See note to financial statements.
49
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Treasury Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- -------- ------------------------------------- ---------
<S> <C> <C>
U.S. Treasury Bills (21.8%):
$ 5,000 2/6/97.............................. $ 4,974
8,000 3/6/97.............................. 7,926
5,000 3/13/97............................. 4,949
5,000 3/20/97............................. 4,943
5,000 3/27/97............................. 4,941
8,000 4/3/97.............................. 7,893
7,500 4/10/97............................. 7,395
5,000 4/17/97............................. 4,925
5,000 4/24/97............................. 4,920
5,000 5/1/97.............................. 4,913
2,500 5/8/97.............................. 2,455
2,500 5/15/97............................. 2,453
2,000 5/29/97............................. 1,958
2,000 6/26/97............................. 1,950
4,000 7/24/97............................. 3,879
4,000 8/21/97............................. 3,861
4,000 9/18/97............................. 3,844
5,000 10/16/97............................ 4,791
5,000 11/13/97............................ 4,775
5,000 12/11/97............................ 4,754
1,000 1/8/98.............................. 947
--------
Total U.S. Treasury Bills 93,446
--------
Total Investments 93,446
--------
Repurchase Agreements (78.8%):
107,300 Aubrey Lanston, 6.75%, 1/2/97
(Collateralized by 108,376 U.S.
Treasury Note, 5.00%-7.50%,
11/30/98-8/15/24, market
value--$109,451)................... $107,300
9,604 Chase Securities, 5.75%, 1/2/97
(Collateralized by $10,180 U.S.
Treasury Bills, 5.13%, 9/18/97,
market value--$9,801).............. 9,604
15,000 Goldman Sachs, 5.36%, 1/3/97
(Collateralized by 15,000 U.S.
Government securities,
2/15/05-2/15/12, 4.88%-6.52%,
market value--$15,300)............. 15,000
15,000 Greenwich Capital, 5.35%, 1/3/97
(Collateralized by $14,530 U.S.
Treasury Notes, 5.88-7.75%,
10/31/99-11/30/99, market
value--$15,325).................... 15,000
107,300 HSBC Securities, 6.75%, 1/2/97
(Collateralized by 107,688 U.S.
Treasury Note, 4.75%-9.25%,
7/31/98-12/31/98, market
value--$109,448)................... 107,300
21,400 JP Morgan, 6.50%, 1/2/97
(Collateralized by $21,453 U.S.
Treasury Notes, 6.38%, 5/15/99,
market value--$21,946)............. 21,400
21,400 Lehman Brothers, 7.11%, 1/2/97
(Collateralized by 20,145 U.S.
Treasury Bond, 7.12%, 2/15/23,
market value--$21,823)............. 21,400
20,000 Morgan Stanley 6.00%, 1/2/97
(Collateralized by 20,158 U.S.
Government Treasury Note, 5.63%,
2/28/01, market value--$20,561).... 20,000
21,400 Union Bank of Switzerland, 6.50%,
1/2/97 (Collateralized by $18,578
U.S. Treasury Bonds, 8.13%,
5/15/21, market value--$21,987).... 21,400
--------
Total Repurchase Agreements 338,404
--------
Total (Cost--$431,850)(a) $431,850
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $429,289.
(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 December 31, 1996
Tax-Free Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
- ---------- -------------------------------------------------------------------------------------------------- ----------
Municipal Bonds, Notes, & Commercial Paper (99.4%):
<S> <C> <C>
Alabama (4.2%):
7,300 Birmingham, Medical Clinic Board, 5.10%*, 12/1/26** .............................................. $ 7,300
--------
Colorado (1.8%):
3,200 Platte River Power Electric Authority, Series S-1, 3.55%, 3/6/97 ................................. 3,200
--------
Connecticut (1.2%):
1,500 Connecticut Special Assessment Unemployment, 3.90%, 7/1/97** ..................................... 1,500
500 Meriden Connecticut, 6.40%, 1/15/97 .............................................................. 500
--------
2,000
--------
Delaware (6.2%):
1,900 Economic Development Authority, Delmarva Power & Light Project, 5.05%*, 10/1/17** ................ 1,900
2,600 Economic Development Authority, Delmarva Power & Light Project, 5.05%*, 10/1/29** ................ 2,600
3,600 Economic Development Authority, Delmarva Power & Light Project Series A, 5.05%*, 10/1/17** ....... 3,600
2,600 Economic Development Authority, Hospital Revenue Bond Series B, 4.15%*, 12/1/15** ................ 2,600
--------
10,700
--------
Georgia (2.0%):
3,500 State of Georgia Municipal Gas Authority, 3.60%, 1/10/97 ......................................... 3,500
--------
Illinois (0.6%):
1,000 Illinois Health Facility Authority, 3.70%, 12/1/97 ............................................... 1,000
--------
Indiana (3.5%):
6,100 Indianapolis Industrial Resource Recovery, 5.10%*, 12/1/16** ..................................... 6,100
--------
Kansas (8.8%):
1,500 Burlington Pollution Control, Kansas City Power, 3.40%, 2/19/97 .................................. 1,500
4,450 Burlington Pollution Control, Series A, 3.60%, 1/8/97 ............................................ 4,450
3,000 Burlington, Kansas, 3.55%, 2/19/97 ............................................................... 3,000
3,300 City of Burlington Pollution Control, Series A, 3.40%, 2/19/97 ................................... 3,300
3,000 State of Kansas, Series 94B, 3.95%*, 9/1/14** .................................................... 3,000
--------
15,250
--------
Kentucky (2.4%):
4,100 Lexington-Fayette Urban County Airport, 5.10%*, 4/1/24** ......................................... 4,100
--------
Lousiana (1.2%):
1,300 De Soto Parish, Pollution Control, Central Louisana Electric Co., Series A, 4.05%*, 7/1/18** ..... 1,300
780 Louisiana Public Facilities Authority, 5.00%, 12/1/15 ............................................ 780
--------
2,080
--------
Maryland (5.2%):
1,000 Baltimore County, 3.60%, 1/15/97 ................................................................. 1,000
2,000 Baltimore County, 3.60%, 1/15/97 ................................................................. 2,000
1,000 Baltimore County, Pollution Control, 3.55%, 1/16/97 .............................................. 1,000
3,000 Montgomery County, 3.60%, 2/12/97 ................................................................ 3,000
2,000 Montgomery County, 3.45%, 2/18/97 ................................................................ 2,000
--------
9,000
--------
Massachusetts (0.6%):
1,000 Massachusetts Strategic, Series B, 4.80%, 12/1/97 ................................................ 1,000
--------
Michigan (8.7%):
3,900 Housing Development Authority, 4.10%*, 10/1/07** ................................................. 3,900
2,600 Michigan Strategic Fund, 4.90%, 6/15/10 .......................................................... 2,600
860 Sterling Heights Shopping Center, 4.10%*, 12/1/10** .............................................. 860
800 University of Michigan Hospital, Series A, 5.10%, 12/1/27 ........................................ 800
</TABLE>
Continued
51
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Tax-Free Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
- ---------- ------------------------------------------------------------------------------------------------- -----------
Municipal Bonds, Notes, & Commercial Paper, continued:
<S> <C> <C>
Michigan, continued:
1,880 University of Michigan, Hospital Revenue Bond, Series A, 5.10%*, 12/1/19** ....................... $ 1,880
4,000 University of Michigan, Hospital Revenue Bond, Series A, 5.10%*, 12/1/27** ....................... 4,000
1,000 Wayne County , Michigan, 4.00%, 12/1/16 .......................................................... 1,000
--------
15,040
--------
Minnesota (7.7%):
5,500 Minneapolis, 6.50%, 3/1/97** ..................................................................... 5,535
2,000 Rochester Health Care, Mayo Foundation, Series C, 3.40%, 1/22/97 ................................. 2,000
3,710 Rochester Health Care, Mayo Foundation, Series E, 3.60%, 2/11/97 ................................. 3,710
2,000 Rochester Health Care, Mayo Foundation, Series F, 3.45%, 2/13/97 ................................. 2,000
--------
13,245
--------
New Hampshire (1.8%):
2,000 New Hampshire State Turnpike System, 8.38%, 11/1/97 .............................................. 2,116
1,000 State of New Hampshire, 6.70%, 12/1/97 ........................................................... 1,028
--------
3,144
--------
New York (1.8%):
1,200 City of New York Municipal Water Authority, 5.00%, 6/15/23 ....................................... 1,200
2,000 New York City, Municipal Water Finance Authority, Water & Sewer System, Series C, 5.00%, 6/15/22 . 2,000
--------
3,200
--------
North Carolina (1.7%):
3,000 North Carolina Municipal Power, 3.50%, 2/6/97 .................................................... 3,000
--------
Ohio (0.6%):
1,000 Ohio State Highway Service, GO, 6.00%, 5/15/97 ................................................... 1,008
--------
Oregon (1.7%):
3,000 Oregon State, 3.65%, 12/11/97 .................................................................... 3,000
--------
Pennsylvania (5.5%):
2,500 Allegheny County, 3.65%, 10/30/97** .............................................................. 2,500
1,000 College Township Industrial Development, 4.25%, 11/1/11** ........................................ 1,000
5,000 Montgomery County, 3.40%, 3/12/97 ................................................................ 5,000
1,000 Montgomery County, 3.40%, 3/12/97 ................................................................ 1,000
--------
9,500
--------
South Carolina (1.6%):
2,700 Charleston County, GO, 6.20%, 2/1/97 ............................................................. 2,706
--------
Texas (12.3%):
1,100 Harris County Health Facilities Development Corp., 5.00%, 2/15/16 ................................ 1,100
5,200 Harris County Health Facilities, Methodist Hospital, 5.00%, 12/1/25 .............................. 5,200
500 Harris County Health Facilities, Series B, 5.00%, 2/15/16 ........................................ 500
500 Harris County Health Facility, St. Lukes Episcopal, Series C, 5.00%, 2/15/16 ..................... 500
1,000 Harris County Industrial Development Corp., Series A, 5.00%, 3/1/24 .............................. 1,000
1,000 Harris County Texas Health Facilities, Series A, 5.00%, 2/15/21 .................................. 1,000
5,000 Houston, 3.60%, 1/27/97 .......................................................................... 5,000
2,000 San Antonio, 3.40%, 2/13/97 ...................................................................... 2,000
5,000 Texas State - Tax & Revenue Anticipation Notes, 4.75%, 8/29/97 ................................... 5,027
--------
21,327
--------
</TABLE>
Continued
52
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Tax-Free Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
- ---------- -------------------------------------------------------------------------------------------------- -----------
Municipal Bonds, Notes, & Commercial Paper, continued:
<S> <C> <C>
Utah (2.5%):
3,300 Salt Lake County Pollution Control, Service Station Holding Project, Series B, 4.10%*, 8/1/07** .. $ 3,300
1,000 Tooele County, 3.50%, 3/13/97 .................................................................... 1,000
--------
4,300
--------
Virginia (1.0%):
1,800 Alexandria Industrial Development Authority, 5.10%*, 12/1/16** ................................... 1,800
--------
Wisconsin (2.9%):
2,100 Carlton Pollution Control Revenue, Wisconsin Power & Light Co., Project B, 5.00%*, 9/1/05** ...... 2,100
875 Carlton Power & Light, 5.00%*, 10/1/00** ......................................................... 875
2,000 Wisconsin State, 4.50%, 6/16/97 .................................................................. 2,006
--------
4,981
--------
Wyoming (11.9%):
3,600 Converse County Pollution Control Revenue, PacifiCorp Projects, 5.00%*, 11/1/24** ................ 3,600
3,300 Exxon Corp., Series C, 5.10%, 7/1/17 ............................................................. 3,300
3,000 Lincoln County Pollution Control, 5.00%, 11/1/14 ................................................. 3,000
2,500 Lincoln County Pollution Control, 5.00%*, 11/1/24** .............................................. 2,500
2,000 Lincoln County Pollution Control, Exxon Project, Series B, 5.00%, 7/1/17 ......................... 2,000
6,160 Sweetwater County Pollution Control, PacifiCorp Projects, 5.00%*, 11/1/24** ...................... 6,160
--------
20,560
--------
Total Municipal Bonds, Notes, & Commercial Paper 172,041
--------
Investment Companies (0.4%):
654 Muni Cash Mutual Fund............................................................................. 654
15 Pimco Muni Fund................................................................................... 15
--------
Total Investment Companies 669
--------
Total (Cost--$172,710) (a) $172,710
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $173,129.
(a) Cost for federal income tax and financial reporting purposes are the same.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest 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 December 31, 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.
GO--General Obligation
See notes to financial statements.
53
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Equity Income Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ------------------------------------ ---------
<S> <C> <C>
Common Stocks (67.3%):
Banking (2.7%):
158 First Tennessee National Corp....... $ 5,936
1 First Union Corp.................... 74
142 PNC Financial Corp.................. 5,350
---------
11,360
---------
Beverages (2.6%):
282 Anheuser-Busch Cos., Inc............ 11,264
2 PepsiCo, Inc........................ 59
---------
11,323
---------
Building Products (0.0%):
1 Masco Corp.......................... 36
1 Sherwin-Williams Co................. 50
---------
86
---------
Construction Materials (0.0%):
1 PPG Industries, Inc................. 67
---------
Consumer Goods & Services (1.7%):
489 Dial Corp........................... 7,217
1 Philip Morris Cos., Inc............. 79
1 Procter & Gamble Co................. 75
---------
7,371
---------
Electrical & Electronic (0.0%):
1 Molex, Inc.......................... 53
---------
Electrical Equipment (3.3%):
148 Emerson Electric Co................. 14,348
1 General Electric Co................. 89
---------
14,437
---------
Financial Services (5.1%):
2 Federal National Mortgage Assoc..... 86
348 MBNA Corp........................... 14,428
177 SunAmerica, Inc..................... 7,474
---------
21,988
---------
Food & Related (0.0%):
1 General Mills, Inc.................. 48
2 Sara Lee Corp....................... 67
---------
115
---------
Food Products & Services (4.4%):
441 Flowers Industries, Inc............. 9,473
184 The Coca-Cola Co.................... 9,699
---------
19,172
---------
Forest & Paper Products (2.4%):
111 Kimberly Clark Corp................. 10,544
---------
Health Care (4.9%):
105 Bristol-Myers Squibb Co............. 11,425
200 Johnson & Johnson................... 9,925
---------
21,350
---------
Health Care--Drugs (0.0%):
1 Merck & Co., Inc.................... $ 79
---------
Industrial Goods & Services (2.6%):
169 United Technologies Corp............ 11,128
---------
Insurance (1.1%):
79 Allstate Corp....................... 4,586
---------
Insurance--Property & Casualty (0.0%):
1 American International Group, Inc... 78
---------
Machinery & Equipment (1.8%):
1 Halliburton Co...................... 60
222 Snap-on, Inc........................ 7,909
---------
7,969
---------
Motor Vehicles (0.0%):
1 Ford Motor Co....................... 19
---------
Multiple Industry (0.0%):
1 Minnesota Mining & Manufacturing Co. 54
---------
Office Equipment & Services (1.5%):
119 Xerox Corp.......................... 6,286
---------
Oil & Gas Exploration Products & Services (8.7%):
1 Amoco Corp.......................... 72
73 Atlantic Richfield Co............... 9,646
57 Mobil Corp.......................... 6,925
272 Occidental Petroleums Corp.......... 6,360
136 Questar Corp........................ 5,000
56 Royal Dutch Petroleum Co............ 9,605
---------
37,608
---------
Oil & Gas Industry (0.0%):
2 Enron Oil & Gas Corp................ 78
---------
Paper Products (0.0%):
1 Georgia Pacific Corp................ 65
---------
Pharmaceuticals (6.0%):
183 American Home Products Corp......... 10,699
211 Eli Lilly & Co...................... 15,417
---------
26,116
---------
Railroads (0.0%):
1 Burlington Northern Santa Fe........ 60
---------
Retail Stores (0.0%):
1 Home Depot, Inc..................... 30
---------
Retail Stores & Catalog (5.3%):
363 Intimate Brands, Inc................ 6,169
108 May Department Stores Co............ 5,051
259 Sears Roebuck & Co.................. 11,926
---------
23,146
---------
Technology (0.1%):
1 Intel Corp.......................... 131
0 Lucent Technologies, Inc............ 18
1 Microsoft(b)........................ 116
1 Motorola, Inc....................... 74
---------
339
---------
</TABLE>
Continued
54
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Equity Income Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------ ---------
<S> <C> <C>
Common Stocks, continued:
Telecommunications (1.5%):
286 Frontier Corp....................... $ 6,459
---------
Telecommunications-Services & Equipment (0.0%):
1 US West, Inc........................ 45
---------
Tobacco (2.4%):
325 U.S.T. Inc.......................... 10,515
---------
Utilities--Electric (6.5%):
152 Central & South West Corp........... 3,895
204 Duke Power Co....................... 9,456
223 Florida Power & Light, Inc.......... 10,267
127 General Public Utility Corp......... 4,270
2 Wisconsin Energy Corp............... 54
---------
27,942
---------
Utilities--Gas (1.6%):
124 Consolidated Natural Gas Co......... 6,868
---------
Utilities--Telephone (0.0%):
1 A T & T Corp........................ 52
---------
Utilities--Water (1.1%):
223 American Water Works, Inc........... 4,608
---------
Total Common Stocks 291,996
---------
Convertible Bonds (16.1%):
Business Services (1.0%):
2,605 First Financial Management Corp.,
5.00%, 12/15/99 .................. 4,490
---------
Consumer Goods & Services (2.3%):
8,585 Gillette Corp., 2.50%, 3/1/03 ...... 9,959
---------
Electrical & Electronic (0.5%):
2,040 VLSI Technology, 8.25%, 10/1/05,
Callable 10/3/97 @ 103.3.......... 2,020
---------
Health Care (4.1%):
6,040 HEALTHSOUTH Rehabilitation Corp.,
5.00%, 4/1/01 .................... 12,110
5,610 Phycor, Inc., 4.50%, 2/15/03 ....... 5,519
---------
17,629
---------
Hotels & Lodging (1.6%):
6,325 HFS Inc., 4.75%, 3/1/03 ............ 7,131
---------
Industrial Goods & Services (1.0%):
3,965 Magna International, 5.00%,
10/15/02 ......................... 4,545
---------
Insurance (1.1%):
102 Allstate Corp., 6.76%, 4/15/98 ..... 4,796
---------
Retail Stores (3.1%):
9,470 Home Depot, Inc., 3.25%, 10/1/01,
Callable: 10/1/99 @ 100.81........ 9,221
4,380 Men's Wearhouse, 5.25%, 3/1/03 ..... 4,271
---------
13,492
---------
Technology (1.4%):
4,280 Analog Devices Corp., 3.50%,
12/1/00 .......................... 5,917
---------
Total Convertible Bonds 69,979
---------
Preferred Stocks (12.2%):
Financial Services (7.4%):
248 First U.S.A......................... 14,652
73 Morgan Stanley...................... 4,779
51 SunAmerica, Inc..................... 4,931
216 The Money Store, Inc................ 5,908
---------
30,270
---------
Industrial Goods & Services (7.4%):
76 Alco Standard Corp.................. 7,210
---------
Oil & Gas Industry (2.0%):
276 Enron Oil & Gas Corp................ 6,619
---------
Paper Products (1.3%):
128 Bowater, Inc., Series B............. 3,918
---------
Printing & Publishing (1.5%):
60 Houghton Mifflin.................... 4,703
---------
Total Preferred Stocks 52,720
---------
Private Placement (1.1%):
Financial Services (1.1%):
4,350 Solectron Corp., Convertible Bond,
6.00%, 3/1/06 .................... 4,742
---------
Total Private Placement 4,742
---------
Total Investments, at value 419,437
---------
Repurchase Agreements (3.0%):
13,026 Goldman Sachs, 6.90%, 1/2/97,
(Collateralized by 13,826 Federal
National Mortgage Assoc., 6.15%,
10/25/23, market value--$13,287)... 13,026
---------
Total Repurchase Agreements 13,026
---------
Total (Cost--$334,245)(a) $432,463
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $433,788.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securitites as follows:
Unrealized appreciation .........................$101,154
Unrealized depreciation ......................... (2,936)
--------
Net unrealized appreciation .................... $ 98,218
========
(b) Represents non-income producing securities.
See notes to financial statements.
55
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Large Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------ --------
<S> <C> <C>
Common Stocks (92.4%):
Agriculture (1.4%):
69,800 CPC International, Inc.............. $ 5,410
--------
Broadcasting & Publishing (2.0%):
146,900 British Sky Broadcasting Group ADR.. 7,712
--------
Chemicals--Petroleum & Inorganic (1.4%):
136,000 Monsanto Corp....................... 5,287
--------
Computer Hardware (4.8%):
68,900 3Com Corp.(b)....................... 5,056
144,100 Cisco Systems, Inc.(b).............. 9,168
78,000 Hewlett Packard Co.................. 3,920
--------
18,144
--------
Computer Software (10.5%):
106,900 Computer Associates International,
Inc............................... 5,318
272,400 First Data Corp..................... 9,942
105,600 Microsoft Corp.(b).................. 8,725
247,150 Oracle Corp.(b)..................... 10,318
53,600 Parametric Technology Corp.(b)...... 2,754
114,400 Sun Microsystems, Inc.(b)........... 2,939
--------
39,996
--------
Consumer Goods & Services (8.7%):
214,450 CUC International, Inc.(b).......... 5,093
115,900 Electronic Data Systems Corp........ 5,013
97,500 Gillette Co......................... 7,581
131,900 Nike, Inc........................... 7,881
71,400 Procter & Gamble Co................. 7,676
--------
33,244
--------
Electrical & Electronic (4.0%):
65,500 Applied Materials, Inc.(b).......... 2,354
78,700 Emerson Electric Co................. 7,614
54,300 General Electric Co................. 5,369
--------
15,337
--------
Entertainment (1.3%):
153,000 Carnival Cruise Lines............... 5,049
--------
Financial Services (9.9%):
115,300 American Express Co................. 6,514
131,200 Associates First Capital Corp....... 5,789
280,600 Federal National Mortgage Assoc..... 10,451
94,000 Green Tree Financial Corp........... 3,631
61,500 Household International, Inc........ 5,673
140,700 MBNA Corp........................... 5,839
--------
37,897
--------
Food & Beverage (4.6%):
147,000 McDonald's Corp..................... 6,652
122,900 PepsiCo, Inc........................ 3,595
142,000 The Coca-Cola Co.................... 7,473
--------
17,720
--------
Common Stocks, continued:
Forest & Paper Products (2.4%):
95,600 Kimberly-Clark Corp................. 9,106
--------
Funeral Services (1.4%):
187,500 Service Corp. International......... 5,250
--------
Health Care (5.1%):
173,900 Baxter International, Inc........... 7,130
188,800 Columbia/HCA Healthcare Corp........ 7,694
75,200 Hospitality Franchise Systems(b).... 4,493
--------
19,317
--------
Hotels & Lodging (2.7%):
178,500 Hilton Hotels Corp.................. 4,663
100,900 Marriott International, Inc......... 5,575
--------
10,238
--------
Industrial Goods & Services (3.5%):
80,600 Alco Standard Corp.................. 4,161
141,200 United Technologies Corp............ 9,318
--------
13,479
--------
Insurance (3.5%):
67,100 American International Group, Inc... 7,264
58,700 Marsh & McLennan Cos., Inc.......... 6,105
--------
13,369
--------
Medical Equipment & Supplies (3.2%):
79,300 Boston Scientific Corp.(b).......... 4,758
111,000 Medtronic, Inc...................... 7,548
--------
12,306
--------
Office Equipment & Services (2.6%):
74,800 Reuters Holding, ADR................ 5,722
79,300 Xerox Corp.......................... 4,173
--------
9,895
--------
Pharmaceuticals (7.7%):
72,800 Eli Lilly & Co...................... 5,314
73,400 Johnson & Johnson................... 3,652
105,600 Merck & Co., Inc.................... 8,369
83,800 Pfizer, Inc......................... 6,945
68,700 Warner-Lambert Co................... 5,153
--------
29,433
--------
Retail Stores (3.4%):
119,400 Home Depot, Inc..................... 5,985
154,900 Sears Roebuck & Co.................. 7,145
--------
13,130
--------
Technology (4.3%):
88,500 Automatic Data Processing, Inc...... 3,794
57,100 Intel Corp.......................... 7,477
112,400 Lucent Technologies, Inc............ 5,199
--------
16,470
--------
</TABLE>
Continued
56
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Large Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ----------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Telecommunications (2.5%):
206,500 AirTouch Communications, Inc.(b).... $ 5,214
160,500 WorldCom, Inc.(b)................... 4,183
--------
9,397
--------
Wholesale Distribution - Pharmaceuticals (1.5%):
101,550 Cardinal Health, Inc................ 5,915
--------
Total Common Stocks 353,101
--------
Total Investments, at value 353,101
--------
Repurchase Agreements (7.5%):
28,725,000 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by 35,729 Federal
Mortgage Assoc., 5.92%, 10/1/24,
market value--$29,300)............. $ 28,725
--------
Total Repurchase Agreements 28,725
--------
Total (Cost--$343,789) $381,826
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $382,257.
(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 ........................ $47,626
Unrealized depreciation ........................ (9,589)
-------
Net unrealized appreciation .................... $38,037
=======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
57
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31,1996
Mid-Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------- --------
Common Stocks (95.5%):
Business Services (5.1%):
<S> <C> <C>
246,150 Ceridian Corp.(b)................... $ 9,969
159,900 Cintas Corp......................... 9,394
260,250 Paychex, Inc........................ 13,387
--------
32,750
--------
Commercial Goods & Services (1.3%):
247,700 Cambridge Technology Partners,
Inc.(b)........................... 8,313
--------
Commercial Services (0.9%):
176,750 Stewart Enterprises................. 6,010
--------
Computer Hardware (1.9%):
367,300 FORE Systems, Inc.(b)............... 12,075
--------
Computer Software (19.0%):
276,900 Baan Co. NV(b)...................... 9,622
254,300 BMC Software, Inc.(b)............... 10,522
230,500 Cadence Design Systems, Inc.(b)..... 9,162
97,900 CBT Group PLC(b).................... 5,311
152,500 Computer Sciences Corp.(b).......... 12,524
151,500 Electronic Arts, Inc.(b)............ 4,536
402,125 McAfee Associates, Inc.(b).......... 17,694
136,900 Objective Systems Integrators,
Inc.(b)........................... 3,268
344,900 Parametric Technology Corp.(b)...... 17,719
349,500 PeopleSoft, Inc.(b)................. 16,754
133,044 Pure Atria Corp.(b)................. 3,293
72,600 Shiva Corp.(b)...................... 2,532
240,300 Sungard Data Systems, Inc.(b)....... 9,492
--------
122,429
--------
Consumer Goods & Services (1.0%):
136,700 Nine West Group, Inc.(b)............ 6,339
--------
Correctional Facilities (1.4%):
289,500 Corrections Corp. of America(b)..... 8,866
--------
Data Processing & Reproduction (2.6%):
292,000 Fiserv, Inc.(b)..................... 10,731
229,000 Reynolds & Reynolds................. 5,954
--------
16,685
--------
Electrical & Electronic (1.1%):
199,883 Molex, Inc.......................... 7,121
--------
Electrical & Electronics (0.5%):
100,200 Analog Devices, Inc.(b)............. 3,394
--------
Entertainment (2.4%):
323,100 Carnival Cruise Lines............... 10,662
139,700 Circus Circus Enterprises, Inc.(b).. 4,802
--------
15,464
--------
Environmental Services (1.1%):
205,700 United Waste Systems, Inc.(b)....... 7,071
--------
Financial Services (11.8%):
487,650 Concord EFS, Inc.(b)................ 13,776
304,200 Credit Acceptance Corp.(b).......... 7,149
184,600 Finova Group, Inc................... 11,861
247,400 First USA, Inc...................... 8,566
424,500 Green Tree Financial Corp........... 16,396
216,875 MBNA Corp........................... 9,000
336,650 The Money Store, Inc. .............. 9,300
--------
76,048
--------
Funeral Services (2.8%):
640,800 Service Corp. International......... 17,942
--------
Health Care (8.3%):
435,125 Health Management Associates, 9,790
Inc.(b)...........................
476,150 HEALTHSOUTH Corp.(b)................ 18,391
355,100 Hospitality Franchise Systems,
Inc.(b)........................... 21,217
93,800 Steris Corp.(b)..................... 4,080
--------
53,478
--------
Hotels & Lodging (1.3%):
220,500 Sun International Hotel(b).......... 8,048
--------
Industrial Goods & Services (1.2%):
152,000 Alco Standard Corp.................. 7,847
--------
Insurance (2.7%):
397,800 SunAmerica, Inc..................... 17,652
--------
Insurance--Property & Casualty (0.8%):
207,400 HCC Insurance Holdings Inc.......... 4,978
--------
Manufacturing-Consumer Goods (1.4%):
289,200 Newell Cos., Inc.................... 9,110
--------
Medical (0.9%):
84,100 Quintiles Transnational Corp.(b).... 5,572
--------
Medical Equipment & Supplies (1.2%):
206,000 IDEXX Laboratories, Inc.(b)......... 7,416
--------
Medical--Hospital Management & Services (3.8%):
551,100 Omnicare, Inc....................... 17,704
243,150 PhyCor, Inc.(b)..................... 6,899
--------
24,603
--------
Office Equipment & Services (3.0%):
222,500 U.S. Office Products Co.(b)......... 7,593
437,700 Viking Office Products, Inc.(b)..... 11,681
--------
19,274
--------
Pharmaceuticals (2.4%):
142,000 Biogen, Inc.(b)..................... 5,503
209,400 Dura Pharmaceuticals, Inc.(b)....... 9,999
--------
15,502
--------
</TABLE>
Continued
58
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Mid-Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- -------------------------------------- --------
Common Stocks, continued:
Retail Stores & Catalog (6.3%):
<S> <C> <C>
93,400 Abercrombie & Fitch Co.(b).......... $ 1,541
280,875 Consolidated Stores Corp.(b)........ 9,023
227,700 MSC Industrial Direct Co., Inc.(b).. 8,425
670,300 PETsMART, Inc.(b)................... 14,663
257,900 Saks Holdings, Inc.(b).............. 6,963
--------
40,615
--------
Telecommunications (3.8%):
611,000 CanWest Global Communications Corp.. 6,263
351,100 LCI International, Inc.(b).......... 7,549
288,200 Tellabs, Inc.(b).................... 10,844
--------
24,656
--------
Telecommunications-Services & Equipment (1.3%):
125,200 Excel Communications, Inc.(b)....... 2,629
245,300 West TeleServices Corp.(b).......... 5,581
--------
8,210
--------
Wholesale Distribution (1.5%):
395,900 Richfood Holdings, Inc.............. 9,601
--------
Wholesale Distribution - Pharmaceuticals (2.7%):
296,475 Cardinal Health, Inc................ 17,270
--------
Total Common Stocks 614,339
--------
Total Investments, at value 614,339
--------
Repurchase Agreements (4.2%):
27,085,000 Goldman Sachs, 6.90%, 1/2/97,
(Collateralized by 206,541
various U.S. Government Agency
securities, 0.00% - 9.00%, 9/1/98
- 4/1/30, market value--$27,627)... 27,085
--------
Total Repurchase Agreements 27,085
--------
Total (Cost-- $453,414)(a) $641,424
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $643,405.
(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 ................................................. $199,130
Unrealized depreciation ................................................. (11,120)
========
Net unrealized appreciation ............................................. $188,010
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
59
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Small Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------ --------
<S> <C> <C>
Common Stocks (92.9%):
Advertisement (1.4%):
362,125 HA-LO Industries, Inc.(b)........... $ 9,958
--------
Business Services (7.8%):
145,800 Access Health, Inc.(b).............. 6,525
701,250 Concord EFS, Inc.(b)................ 19,810
454,400 Employee Solutions, Inc.(b)......... 9,315
199,900 IntelliQuest Information Group, 4,548
Inc.(b)...........................
212,300 International Telecommunication
Data System, Inc.(b).............. 5,148
182,800 Physicians Support Systems, Inc.(b). 3,519
386,050 PMT Services, Inc.(b)............... 6,756
--------
55,621
--------
Commercial Goods & Services (1.0%):
246,700 Iron Mountain, Inc.(b).............. 7,463
--------
Computer Hardware (1.5%):
213,800 Veritas Software Corp.(b)........... 10,637
--------
Computer Software (10.4%):
134,700 Aspen Technologies, Inc.(b)......... 10,810
443,450 Cambridge Technology Partners, 14,883
Inc.(b)...........................
228,050 INSO Corp.(b)....................... 9,065
192,400 JDA Software Group, Inc.(b)......... 5,483
133,950 Project Software & Development, 5,676
Inc.(b)...........................
523,600 Systemsoft Corp.(b)................. 7,789
163,300 Unison Software, Inc.(b)............ 4,368
193,000 Viasoft, Inc.(b).................... 9,119
147,200 Visio Corp.(b)...................... 7,286
--------
74,479
--------
Consumer Goods & Services (4.7%):
166,100 DVI, Inc.(b)........................ 2,159
180,700 First Alliance Corp.(b)............. 5,466
126,900 Registry, Inc.(b)................... 5,853
108,400 Suburban Lodges of America, Inc.(b). 1,734
149,000 UroCor, Inc.(b)..................... 1,425
226,600 USA Detergents, Inc.(b)............. 9,432
221,600 Verilink Corp.(b)................... 7,368
--------
33,437
--------
Correctional Facilities (1.1%):
380,800 Wackenhut Corrections Corp.(b)...... 7,616
--------
Cosmetics & Toiletries (1.1%):
300,000 Rexall Sundown, Inc.(b)............. 8,156
--------
Data Processing & Reproduction (0.9%):
169,200 F.Y.I. Inc.(b)...................... 3,532
84,600 Pegasystems Inc.(b)................. 2,549
--------
6,081
--------
Education (1.7%):
429,750 Sylvan Learning Systems, Inc.(b).... 12,248
--------
Common Stocks, continued:
Electrical & Electronic (5.4%):
123,900 ACT Manufacturing, Inc.(b).......... 3,268
424,950 Actel Corp.(b)...................... 10,093
185,900 Advanced Lighting Technologies, 4,508
Inc.(b)...........................
170,500 Checkpoint Systems, Inc............. 4,220
186,500 Chicago Miniature Lamp, Inc.(b)..... 7,740
149,500 Flextronics International, Ltd.(b).. 4,149
181,200 Photronics, Inc.(b)................. 4,938
--------
38,916
--------
Entertainment (2.0%):
465,675 Regal Cinemas, Inc.(b).............. 14,320
--------
Financial Services (8.0%):
130,350 Aames Financial Corp................ 4,676
218,600 Central Financial Acceptance 4,372
Corp.(b)..........................
826,200 Credit Acceptance Corp.(b).......... 19,416
750,980 Imperial Credit Industries, Inc.(b). 15,771
211,300 Metris Cos., Inc.(b)................ 5,071
270,200 Oxford Resources Corp.- Class A(b).. 8,342
--------
57,648
--------
Food Products (0.8%):
258,600 Whole Foods Market, Inc............. 5,819
--------
Funeral Services (0.8%):
292,700 Equity Corp. International(b)....... 5,854
--------
Health Care (5.1%):
305,350 OccuSystems, Inc.(b)................ 8,244
847,700 Orthodontic Centers of America, 13,563
Inc.(b)...........................
121,600 NCS HealthCare, Inc.-Class A(b)..... 3,542
400,350 PhyCor, Inc.(b)..................... 11,360
--------
36,709
--------
Insurance (1.1%):
315,000 Amerin Corp.(b)..................... 8,111
--------
Machinery & Equipment (0.7%):
176,000 Rental Service Corp.(b)............. 4,840
--------
Manufacturing - Capital Goods (1.8%):
631,350 Miller Industries, Inc.(b).......... 12,627
--------
Medical Equipment & Supplies (6.7%):
351,800 Henry Schein, Inc.(b)............... 12,093
189,000 MedQuist Inc.(b).................... 4,678
636,100 Omnicare, Inc....................... 20,435
222,600 Serologicals Corp.(b)............... 7,874
395,800 UroHealth Systems, Inc.(b).......... 3,166
--------
48,246
--------
Medical--Hospital Services (1.6%):
312,400 Total Renal Care Holdings, Inc.(b).. 11,325
--------
Pharmaceuticals (7.6%):
212,500 American Medserve Corp.(b).......... 3,294
543,100 Dura Pharmaceuticals, Inc.(b)....... 25,933
214,025 Jones Medical Industries, Inc....... 7,839
</TABLE>
Continued
60
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Small Capitalization Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------ --------
<S> <C> <C>
Common Stocks, continued:
Pharmaceuticals, continued:
166,200 Parexel International Corp.(b)...... $ 8,580
138,000 Quintiles Transnational Corp.(b).... 9,143
--------
54,789
--------
Publishing (0.5%):
187,600 Desktop Data, Inc.(b)............... 3,611
--------
Restaurants (1.3%):
428,700 Landry's Seafood Restaurants,
Inc.(b)........................... 9,163
--------
Retail Stores (3.5%):
183,300 CDW Computer Center, Inc.(b)........ 10,872
318,000 Renter's Choice, Inc.(b)............ 4,611
348,800 West Marine, Inc.(b)................ 9,854
--------
25,337
--------
Retail--Specialty Stores (3.4%):
360,750 Just For Feet, Inc.(b).............. 9,470
320,700 Men's Warehouse, Inc.(b)............ 7,857
337,175 Petco Animal Supplies, Inc.(b)...... 6,996
--------
24,323
--------
Technology (2.7%):
349,000 Sanmina Corp.(b).................... 19,719
--------
Telecommunications (4.9%):
241,500 Harmonic Lightwaves, Inc.(b)........ 3,713
229,300 LCI International, Inc.(b).......... 4,930
378,100 Larscom, Inc.(b).................... 4,301
188,900 Pacific Gateway Exchange, Inc.(b)... 6,895
653,100 Telco Communications Group, Inc.(b). 11,429
336,300 Transaction Network Services,
Inc.(b)........................... 3,867
--------
35,135
--------
Telecommunications--Equipment (1.0%):
372,600 DSP Communications, Inc.(b)......... $ 7,219
--------
Wholesale Distribution (2.4%):
205,700 Barnett, Inc.(b).................... 5,605
393,750 Brightpoint, Inc.(b)................ 11,714
--------
17,319
--------
Total Common Stocks 666,726
--------
Foreign Stocks (0.9%):
Portugal (0.9%):
Medical Equipment & Supplies (0.9%):
245,800 ESC Medical Systems(b).............. 6,268
--------
Total Foreign Stocks 6,268
--------
Options & Warrants (0.0%):
5,081 York Research Corp. Class B,
Exercise Price $6.15.............. 0
3,535 York Research Corp., Class C,
Exercise Price $6.50.............. 0
--------
Total Options & Warrants 0
--------
Total Investments, at value 672,994
--------
Repurchase Agreements (5.9%):
42,114,000 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by $50,593 Federal
National Mortgage Assoc.
securities, 5.92-7.52%,
10/1/24-7/1/25, market
value--$42,956)..................... 42,114
--------
Total Repurchase Agreements 42,114
--------
Total (Cost-- $451,293)(a) $715,108
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $717,545.
(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 .................................. $277,791
Unrealized depreciation .................................. (13,976)
--------
Net unrealized appreciation .............................. $263,815
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
International Discovery Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------- ----------
<S> <C> <C>
Common Stocks (91.1%):
Tobacco (0.5%):
358,000 PT Hanjaya Mandala Sampoema(b)........... $ 1,909
---------
Australia (2.4%):
Beverages & Tobacco (0.9%):
1,862,000 Foster's Brewing Group Ltd............... 3,771
---------
Diversified (0.8%):
433,648 Smith (Howard) Ltd....................... 3,565
---------
Pharmaceuticals (0.7%):
625,000 CSL Limited(b)........................... 2,954
---------
Total Australia 10,290
---------
Belgium (1.7%):
Retail Stores/Catalog (1.7%):
15,500 Colrayt.................................. 7,100
---------
Canada (3.8%):
Electronic Components/ Instruments (1.2%):
320,000 CAE, Inc................................. 2,416
97,000 Cinram Ltd............................... 2,654
---------
5,070
---------
Manufacturing-Consumer Goods (1.3%):
291,000 Bombardier, Inc., Class B................ 5,371
---------
Natural Resources (1.3%):
208,500 Canadian Natural Resources Ltd.(b)....... 5,720
---------
Total Canada 16,161
---------
Denmark (1.7%):
Food Products & Services (1.7%):
117,000 Danisco A/S.............................. 7,101
---------
Finland (1.3%):
Diversified (0.5%):
46,700 Huhtamaki Group.......................... 2,168
---------
Retail Stores/Catalog (0.8%):
57,200 Stockmann AB, Class B.................... 3,413
---------
Total Finland 5,581
---------
France (7.1%):
Consumer Goods & Services (4.9%):
28,000 Clarins(b)............................... 4,099
24,250 Hermes International..................... 6,717
69,130 Societe BIC SA........................... 10,345
---------
21,161
---------
Engineering (1.0%):
13,000 Altran Technologies...................... 4,169
---------
Machinery & Equipment (1.0%):
60,000 Sidel SA................................ 4,120
---------
Manufacturing-Consumer Goods (0.2%):
29,000 St. Dupont(b)............................ 982
---------
Total France 30,432
---------
Germany (4.3%):
Engineering (1.4%):
14,035 Mannesmann AG............................ 6,031
---------
Manufacturing-Consumer Goods (1.5%):
72,735 Adidas AG................................ 6,277
---------
Pharmaceuticals (1.4%):
72,735 Schering AG.............................. 6,131
---------
Total Germany 18,439
---------
Hong Kong (3.1%):
Consumer Goods & Services (1.0%):
450,000 Henderson Land Development Co. Ltd(b).... 4,538
---------
Gas & Electric Utility (1.3%):
2,822,000 Hong Kong & China Gas Co. Ltd............ 5,454
---------
Real Estate (0.8%):
272,000 Sun Hung Kai Properties Ltd.............. 3,332
---------
Total Hong Kong 13,324
---------
Indonesia (0.5%):
Banking & Financial Services (0.5%):
2,372,221 Bank Internasional Indonesia(b).......... 2,209
---------
Italy (0.5%):
Jewelry (0.5%):
105,000 Bulgari SpA.............................. 2,127
---------
Japan (21.8%):
Chemicals (0.6%):
450,000 Takasago International(b)................ 2,543
---------
Computer Software (2.5%):
49,000 PCA Corp................................. 1,604
136,000 TDK Corp................................. 8,846
---------
10,450
---------
Construction (2.2%):
630,000 Matsushita Electric Works................ 5,411
145,000 Sho-Bond Construction Corp............... 3,898
---------
9,309
---------
Diversified (1.6%):
873,000 Mitsubishi Heavy Industries, Ltd.(b)..... 6,920
---------
Electrical & Electronic (3.4%):
53,000 Keyence Corp............................. 6,530
125,000 Rohm Co.................................. 8,185
---------
14,715
---------
Electronic Components/ Instruments (2.6%):
116,000 Hirose Electric.......................... 6,706
354,000 NEC Corp................................. 4,270
---------
10,976
---------
</TABLE>
Continued
62
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
International Discovery Fund (UNAUDITED)
(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:
Food Products & Services (0.7%):
97,000 Matsumotokiyoshi......................... $ 3,176
---------
Manufacturing-Consumer Goods (1.0%):
200,000 Canon, Inc............................... 4,411
---------
Pharmaceuticals (3.6%):
388,000 Daiichi Pharmaceutical................... 6,218
436,000 Takeda Chemical Ind...................... 9,128
---------
15,346
---------
Restaurants (0.4%):
38,000 Doutor Coffee Co., Ltd................... 1,588
---------
Retail (0.5%):
32,000 Autobacs Seven Co., Ltd.................. 2,258
---------
Services (1.8%):
59,000 Nichii Gakkan Co......................... 2,938
78,000 Secom.................................... 4,711
---------
7,649
---------
Telecommunications (0.9%):
485,000 Denki Kogyo Co., Ltd.(b)................. 3,635
---------
Total Japan 92,976
---------
Malaysia (3.2%):
Construction (1.0%):
1,454,000 Sungei Way Holdings Berhad(b)............ 4,318
145,400 Sungei Way Holdings Bhd.(b).............. 173
---------
4,491
---------
Engineering (2.2%):
1,029,000 United Engineers Ltd..................... 9,290
---------
Total Malaysia 13,781
---------
Mexico (2.1%):
Beverages & Tobacco (0.9%):
1,074,500 Fomento Economico Mexicano, SA de CV..... 3,658
---------
Diversified (0.8%):
618,000 Grupo Carso SA de CV(b).................. 3,219
---------
Food & Beverages (0.4%):
1,501,000 Grupo Industrial Maseca SA de CV......... 1,888
---------
Total Mexico 8,765
---------
Netherlands (6.4%):
Broadcasting & Publishing (1.1%):
290,900 Elsevier NV.............................. 4,911
---------
Distribution (1.1%):
58,200 Hagemeyer NV............................. 4,647
---------
Office Equipment & Services (2.8%):
59,930 Ahrend................................... 3,336
79,500 Oce-Van Der Grinten NV................... 8,622
---------
11,958
---------
Printing & Publishing (1.4%):
44,343 Wolters Kluwer NV........................ 5,883
---------
Total Netherlands 27,399
---------
New Zealand (1.5%):
Agriculture (0.7%):
872,800 Fernz Corp. Ltd.......................... 2,991
---------
Consumer Goods & Services (0.8%):
877,544 Fisher & Paykel Ind. Ltd................. 3,441
---------
Total New Zealand 6,432
---------
Norway (2.1%):
Printing & Publishing (0.9%):
220,000 Schibsted ASA............................ 4,048
---------
Telecommunications (1.2%):
116,400 Nera AS.................................. 5,031
---------
Total Norway 9,079
---------
Philippines (0.5%):
Construction (0.5%):
4,364,100 C&P Homes, Inc.(b)....................... 2,240
---------
Portugal (0.3%):
Beverages & Tobacco (0.3%):
70,335 Unicer-Uniao Cervejeira, SA.............. 1,216
---------
Singapore (0.6%):
Diversified (0.6%):
952,300 Singapore Technologies Industrial
Corp.(b)............................... 2,383
---------
Spain (1.2%):
Commercial Services (1.2%):
550,000 Prosegur, CIA de Seguridad SA(b)......... 5,074
---------
Sweden (1.2%):
Engineering (1.2%):
194,000 Sandvik B................................ 5,256
---------
Switzerland (3.0%):
Business Services (1.6%):
2,810 Societe General De Surveillance.......... 6,885
---------
Pharmaceuticals (1.4%):
746 Roche Holdings AG........................ 5,786
---------
Total Switzerland 12,671
---------
United Kingdom (13.2%):
Building Products (1.6%):
1,745,600 Polypipe PLC............................. 6,930
---------
Capital Goods (1.8%):
775,900 Powerscreen International PLC............ 7,502
---------
Commercial Services (1.5%):
872,800 Rentokil Group PLC....................... 6,557
---------
</TABLE>
Continued
63
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
International Discovery Fund (UNAUDITED)
(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:
Computer Software (1.7%):
460,700 Logica PLC(b)............................ $ 7,241
---------
Consumer Goods & Services (1.0%):
329,800 Argos PLC................................ 4,337
---------
Engineering (1.3%):
295,500 Siebe PLC................................ 5,482
---------
Food Products & Services (1.7%):
678,800 Compass Group PLC........................ 7,173
---------
Machinery & Equipment (1.0%):
775,900 TT Group PLC............................. 4,495
---------
Manufacturing-Consumer Goods (1.6%):
2,060,800 Halma PLC................................ 6,683
---------
Total United Kingdom 56,400
---------
United States (7.1%):
Oil & Gas Exploration Production & Services (1.1%):
180,000 YPF Sociedad Anonima, ADR................ 4,545
---------
Pharmaceuticals (1.0%):
90,000 Teva Pharmaceutical Industries,
Ltd., ADR.............................. 4,523
---------
Telecommunications (5.0%):
43,700 Cia de Telecomunicaciones de Chile
SA, ADR................................ 4,419
98,571 Korea Mobile Telecommunications
Corp., GDR(b).......................... 1,269
97,000 Newbridge Network Corp., ADR(b).......... 2,740
47,000 Oy Nokia................................. 2,708
145,500 Portugal Telecom SA...................... 4,110
78,600 Telecomunicacoes Brasileiras SA, ADR..... 6,013
---------
21,259
---------
Total United States 30,327
---------
Total Common Stocks 388,672
---------
Money Market Funds - Tax Exempt (1.9%):
8,137,392 Parkstone Bank of California............. 8,137
---------
Total Money Market Funds - Tax Exempt 8,137
---------
Mutual Funds (5.3%):
10,000,000 Parkstone Government Obligations
Fund................................... 10,000
12,717,506 Parkstone Prime Obligations Fund......... 12,718
---------
22,718
---------
Total Mutual Funds 22,718
---------
Preferred Stock (1.8%):
Australia (0.7%):
1,002,602 Village Roadshow Ltd..................... 2,723
---------
United States (1.1%):
Business Services (1.1%):
33,950 Dem SAP AG............................... 4,666
---------
Total Preferred Stock 7,389
---------
Total Investments, at value 426,916
---------
Total (Cost-- $342,377)(a) $426,916
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $426,633.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
Unrealized appreciation .......... $87,095
Unrealized depreciation .......... (2,556)
=======
Net unrealized appreciation ..... $84,539
=======
(b) Represents non-income producing securities.
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks (38.4%):
Advertisement (0.1%):
5,250 HA-LO Industries Inc.(b)................... $ 144
--------
Agriculture (0.3%):
5,700 CPC International, Inc..................... 442
--------
Banking (0.2%):
3,300 Metris Cos., Inc.(b)....................... 79
6,900 Saks Holdings Inc.(b)...................... 186
--------
265
--------
Broadcasting & Cable (0.4%):
12,600 British Sky Broadcasting Group-ADR......... 662
--------
Building Products (0.0%):
2,900 Advanced Lighting Technologies, Inc.(b).... 70
--------
Business Services (1.3%):
6,850 Ceridian Corp.(b).......................... 277
4,450 Cintas Corp................................ 261
24,250 Concord EFS, Inc.(b)....................... 685
2,900 IntelliQuest Information Group, Inc.(b).... 66
2,900 International Telecommunication Data
Systems, Inc.(b)........................ 70
7,300 Paychex.................................... 375
2,600 Physicians Support Systems, Inc.(b)........ 50
5,700 PMT Services, Inc.(b)...................... 100
--------
1,884
--------
Chemicals--Petroleum & Inorganic (0.3%):
12,400 Monsanto Corp.............................. 482
--------
Commercial Goods & Services (0.2%):
3,700 Iron Mountain, Inc.(b)..................... 112
4,700 Stewart Enterprises........................ 160
--------
272
--------
Computer Hardware (1.2%):
5,400 3 Com Corp.(b)............................. 396
12,400 Cisco Systems, Inc.(b)..................... 789
10,200 Fore Systems Inc.(b)....................... 335
5,300 Larscom, Inc.(b)........................... 60
3,250 Veritas Software Corp.(b).................. 162
--------
1,742
--------
Computer Software (4.1%):
2,100 Access Health, Inc.(b)..................... 94
1,900 Aspen Technologies, Inc.(b)................ 152
7,500 Baan Co. Nv(b)............................. 261
7,000 BMC Software, Inc.(b)...................... 290
6,200 Cadence Design Systems, Inc.(b)............ 246
13,500 Cambridge Technology Partners, Inc.(b)..... 453
2,600 CBT Group PLC(b)........................... 141
8,750 Computer Associates International, Inc..... 435
4,000 Electronic Arts, Inc.(b)................... 120
3,300 Inso Corp.(b).............................. 131
2,700 JDA Software Group, Inc.(b)................ 77
11,400 McAfee Associates, Inc.(b)................. 502
3,700 Objective Systems Integrators, Inc.(b)..... 88
20,200 Oracle Corp.(b)............................ 843
14,100 Parametric Technology Corp................. 724
1,100 Pegasystems Inc.(b)........................ 33
10,000 Peoplesoft, Inc.(b)........................ 479
2,000 Project Software & Development, Inc.(b).... 85
3,500 Pure Atria Corp.(b)........................ 87
1,500 Shiva Corp.(b)............................. 52
11,400 Sun Microsystems, Inc.(b).................. 293
6,800 Sungard Data Systems Inc.(b)............... 269
7,500 Systemsoft Corp.(b)........................ 112
2,800 Viasoft, Inc.(b)........................... 132
2,100 Visio Corp.(b)............................. 104
--------
6,203
--------
Consumer Goods & Services (2.5%):
2,400 Checkpoint Systems, Inc.................... 59
18,350 CUC International, Inc.(b)................. 436
2,600 DVI, Inc.(b)............................... 34
9,800 Electronic Data Systems Corp............... 424
2,600 First Alliance Corp.(b).................... 79
8,900 Gillette Co................................ 692
11,600 Nike, Inc.................................. 693
3,800 Nine West Group, Inc.(b)................... 176
2,800 Photronics, Inc.(b)........................ 76
6,100 Procter & Gamble Co........................ 656
1,800 Registry, Inc.(b).......................... 83
1,700 Suburban Lodges of America, Inc.(b)........ 27
2,300 Unison Software, Inc.(b)................... 62
2,600 UroCor, Inc.(b)............................ 25
3,300 USA Detergents, Inc.(b).................... 137
3,200 Verilink Corp.(b).......................... 106
3,700 Whole Foods Market, Inc.................... 83
--------
3,848
--------
Correctional Facilities (0.2%):
7,700 Corrections Corp. of America(b)............ 236
5,400 Wackenhut Corrections Corp.(b)............. 108
--------
344
--------
Data Processing & Reproduction (1.0%):
2,400 F.Y.I. Inc.(b)............................. 50
24,786 First Data Corp............................ 905
8,100 Fiserv, Inc.(b)............................ 298
6,000 Reynolds & Reynolds........................ 156
--------
1,409
--------
Education (0.1%):
6,150 Sylvan Learning Systems, Inc.(b)........... 175
--------
</TABLE>
65
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Electrical & Electronics (1.2%):
1,700 ACT Manufacturing, Inc.(b)................. $ 45
6,050 Actel Corp.(b)............................. 144
2,700 Analog Devices, Inc.(b).................... 91
4,300 Applied Materials(b)....................... 155
2,800 Chicago Miniature Lamp, Inc.(b)............ 116
6,700 Emerson Electric........................... 648
2,200 Flextronics International, Ltd.(b)......... 61
4,600 General Electric Co........................ 455
5,506 Molex, Inc................................. 196
--------
1,911
--------
Entertainment (0.7%):
21,900 Carnival Corp.............................. 723
3,700 Circus Circus Entertainment(b)............. 127
7,200 Regal Cinemas, Inc.(b)..................... 221
--------
1,071
--------
Environmental Services (0.1%):
5,600 United Waste Systems, Inc.(b).............. 193
--------
Financial Services (4.0%):
1,900 Aames Financial Corp....................... 68
9,500 American Express Co........................ 537
10,200 Associates First Capital................... 450
3,100 Central Financial Acceptance Corp.(b)...... 62
22,900 Credit Acceptance Corp.(b)................. 538
6,400 Employee Solutions, Inc.(b)................ 131
24,300 Federal National Mortgage Assoc............ 905
5,200 Finova Group, Inc.......................... 334
6,800 First USA, Inc............................. 235
24,200 Green Tree Financial Corp.................. 935
5,000 Household International, Inc............... 461
11,064 Imperial Credit Industries, Inc.(b)........ 232
17,050 MBNA Corp.................................. 708
4,000 Oxford Resources Corp.- Class A(b)......... 124
9,100 The Money Store Inc........................ 251
--------
5,971
--------
Food & Beverages (0.7%):
10,900 PepsiCo, Inc............................... 319
12,900 The Coca-Cola Co........................... 679
--------
998
--------
Forest & Paper Products (0.6%):
8,900 Kimberly Clark Corp........................ 848
--------
Funeral Services (0.7%):
4,200 Equity Corp. International(b).............. 84
34,200 Service Corp. International................ 958
--------
1,042
--------
Health Care (1.8%):
15,500 Baxter International, Inc.................. 636
16,450 Columbia/HCA Healthcare Corp............... 670
6,400 Health Management Associates(b)............ 144
1,700 NCS HealthCare, Inc.-Class A(b)............ 50
4,400 OccuSystems, Inc.(b)....................... 119
24,200 Omnicare, Inc.............................. 777
13,100 Orthodontic Centers of America, Inc.(b).... 210
2,500 Steris Corp.(b)............................ 109
--------
2,715
--------
Hotels & Lodging (1.5%):
16,900 Hilton Hotels Corp......................... 442
18,900 Hospitality Franchise Systems(b)........... 1,129
8,900 Marriott International, Inc................ 492
5,800 Sun International Hotel(b)................. 212
--------
2,275
--------
Industrial Goods & Services (0.8%):
8,200 Alco Standard Corp......................... 423
11,400 United Technologies Corp................... 752
--------
1,175
--------
Insurance (1.2%):
5,800 American International Group, Inc.......... 628
4,500 Amerin Corp.(b)............................ 116
4,900 Marsh & McLennan Cos., Inc................. 510
11,100 SunAmerica, Inc............................ 493
--------
1,747
--------
Insurance--Property & Casualty (0.1%):
5,600 Hcc Insurance Holdings Inc................. 134
--------
Machinery & Equipment (0.0%):
2,500 Rental Service Corp.(b).................... 69
--------
Manufacturing (0.1%):
9,300 Miller Industries, Inc.(b)................. 186
--------
Manufacturing-Consumer Goods (0.5%):
13,100 HEALTHSOUTH Corp.(b)....................... 506
8,200 Newell Co.................................. 258
--------
764
--------
Medical - Hospital Services (0.1%):
4,500 Total Renal Care Holdings, Inc.(b)......... 163
--------
Medical Equipment & Supplies (0.8%):
7,100 Boston Scientific Corp.(b)................. 426
5,100 Henry Schein, Inc.(b)...................... 175
5,700 IDEXX Laboratories, Inc.(b)................ 205
12,175 PhyCor, Inc.(b)............................ 345
3,200 Serologicals Corp.(b)...................... 113
5,600 UROHEALTH Systems, Inc.(b)................. 45
--------
1,309
--------
Office Equipment & Services (0.8%):
6,400 Hewlett Packard Co......................... 322
5,500 Reuters Holding, ADR....................... 421
</TABLE>
66
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Office Equipment & Services, continued:
8,400 Xerox Corp................................. $ 442
--------
1,185
--------
Pharmaceuticals (3.2%):
3,000 American Medserve Corp.(b)................. 47
3,800 Biogen, Inc.(b)............................ 147
13,800 Dura Pharmaceuticals, Inc.(b).............. 659
6,600 Eli Lilly & Co............................. 482
5,900 Johnson & Johnson.......................... 294
3,100 Jones Medical Industries, Inc.............. 114
2,700 MedQuist, Inc.(b).......................... 67
10,000 Medtronic, Inc............................. 680
8,950 Merck & Co., Inc........................... 709
2,350 Parexel International Corp.(b)............. 121
7,400 Pfizer, Inc................................ 613
4,300 Quintiles Transnational Corp.(b)........... 285
3,300 Teva Pharmaceutical, ADR................... 166
5,600 Warner-Lambert Co.......................... 420
--------
4,804
--------
Printing & Publishing (0.0%):
2,700 Desktop Data, Inc.(b)...................... 52
--------
Restaurants (0.5%):
6,200 Landry's Seafood Restaurants, Inc.(b)...... 133
14,100 McDonald's Corp............................ 638
--------
771
--------
Retail Stores & Catalog (2.2%):
2,400 Abercrombie & Fitch Co.(b)................. 40
2,800 CDW Computer Center, Inc.(b)............... 166
7,625 Consolidated Stores(b)..................... 245
11,050 Home Depot, Inc............................ 554
5,100 Just For Feet, Inc.(b)..................... 134
4,600 Men's Warehouse, Inc.(b)................... 113
6,100 MSC Industrial Direct Co., Inc.(b)......... 226
4,875 Petco Animal Supplies, Inc.(b)............. 101
17,550 PETsMART, Inc.(b).......................... 384
4,500 Renter's Choice, Inc.(b)................... 65
4,350 Rexall Sundown, Inc.(b).................... 118
13,300 Sears Roebuck & Co......................... 613
4,300 U.S. Office Products Co.(b)................ 147
11,500 Viking Office Products(b).................. 307
5,000 West Marine, Inc.(b)....................... 141
--------
3,354
--------
Technology (1.9%):
7,700 Automatic Data Processing, Inc............. 330
4,300 Computer Sciences(b)....................... 353
5,200 Intel Corp................................. 681
9,600 Lucent Technologies, Inc................... 444
8,700 Microsoft(b)............................... 719
5,300 Sanmina Corp.(b)........................... 299
--------
2,826
--------
Telecommunications (1.6%):
19,300 AirTouch Communications, Inc.(b)........... 487
17,500 Canwest Global Communications Corp......... 179
1,600 Compania Telecomunicacion Chile, ADR....... 162
6,000 DSP Communications, Inc.(b)................ 116
3,090 Korea Mobile Telecommunications............ 40
13,100 LCI International, Inc.(b)................. 282
1,700 Oy Nokia................................... 98
2,700 Pacific Gateway Exchange, Inc.(b).......... 99
5,000 Portugal Telecommunication SA, ADR......... 141
9,300 Telco Communications Group, Inc.(b)........ 163
3,000 Telecommunicacoes Brasileiras, ADR......... 230
4,900 Transaction Network Services, Inc.(b)...... 56
14,300 WorldCom, Inc.(b).......................... 373
--------
2,426
--------
Telecommunications-Services & Equipment (0.4%):
3,400 Excel Communications, Inc.(b).............. 71
3,500 Harmonic Lightwaves, Inc.(b)............... 54
2,400 Newbridge Networks Corp.(b)................ 68
8,800 Tellabs, Inc.(b)........................... 331
6,200 West TeleServices Corp.(b)................. 141
--------
665
--------
Wholesale Distribution (1.0%):
2,900 Barnett, Inc.(b)........................... 79
5,587 Brightpoint, Inc.(b)....................... 166
17,100 Cardinal Health, Inc....................... 996
10,550 Richfood Holdings, Inc..................... 256
--------
1,497
--------
Total Common Stocks 58,093
--------
Foreign Stocks (8.8%):
Argentina (0.1%):
Oil & Gas Exploration Products & Services (0.1%):
6,500 YPF Sociedad Anonima, ADR.................. 164
--------
Total Argentina 164
--------
Australia (0.3%):
Beverages & Tobacco (0.1%):
60,000 Fosters Brewing Group Ltd.................. 122
--------
Diversified (0.1%):
15,887 Howard Smith Ltd........................... 131
--------
Entertainment (0.0%):
36,183 Village Roadshow Ltd.(b)................... 98
--------
Pharmaceuticals (0.1%):
25,000 Auditorium CSL Ltd......................... 118
--------
Total Australia 469
--------
</TABLE>
67
Continued
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- ------------------------------------------- --------
<S> <C> <C>
Foreign Stocks, continued:
Belgium (0.2%):
Diversified (0.2%):
600 COLRUYT SA................................. $ 275
--------
Total Belgium 275
--------
Canada (0.4%):
Electronic Components/Instruments (0.1%):
10,000 CAE, Inc................................... 76
4,000 Cinram, Ltd................................ 109
--------
185
--------
Manufacturing-Consumer Goods (0.1%):
11,000 Bombardier, Inc. Class B................... 203
--------
Natural Resources (0.2%):
7,500 Canadian Natural Resources Ltd.(b)......... 206
--------
Total Canada 594
--------
Denmark (0.2%):
Food Products & Services (0.2%):
4,000 Danisco A/S................................ 243
--------
Total Denmark 243
--------
Finland (0.1%):
Diversified (0.0%):
1,700 Huhtamaki "I".............................. 79
--------
Retail Stores/Catalog (0.1%):
2,000 Stockmann AB-Class B....................... 119
--------
Total Finland 198
--------
France (0.7%):
Consumer Goods & Services (0.5%):
2,000 BIC Corp................................... 299
1,100 Clarins.................................... 161
800 Hermes International....................... 222
--------
682
--------
Engineering (0.1%):
520 Altran Technologies, SA.................... 167
--------
Machinery & Equipment (0.1%):
2,400 Sidel SA................................... 165
--------
Manufacturing-Consumer Goods (0.0%):
1,100 State Dupont(b)............................ 37
--------
Total France 1,051
--------
Germany (0.4%):
Engineering (0.1%):
500 Mannesmann AG.............................. 215
--------
Health Care (0.1%):
2,400 Schering AG................................ 202
--------
Manufacturing-Consumer Goods (0.2%):
2,550 Adidas AG.................................. 220
--------
Total Germany 637
--------
Hong Kong (0.3%):
Consumer Goods & Services (0.1%):
17,000 Henderson Land Development Co. Ltd......... 171
--------
Gas & Electric Utility (0.1%):
101,000 Hong Kong & China Gas Co., Ltd............. 195
--------
Real Estate (0.1%):
8,500 Sun Hung Kai Properties Ltd................ 109
--------
Total Hong Kong 475
--------
Indonesia (0.1%):
Banking (0.1%):
67,270 PT Bank Internasional Indonesia............ 63
--------
Tobacco (0.0%):
12,000 Hanjaya Mandala Sampoema................... 64
--------
Total Indonesia 127
--------
Italy (0.1%):
4,000 Bulgari SPA................................ 81
--------
Total Italy 81
--------
Japan (2.3%):
Chemicals (0.3%):
17,000 Takasago International..................... 96
20,000 Takeda Chemical Industries................. 419
--------
515
--------
Computer Software (0.1%):
2,000 PCA Corp................................... 65
--------
Construction (0.1%):
6,000 Sho-Bond Corp.............................. 161
--------
Cosmetics (0.1%):
8,000 Canon Inc.................................. 176
--------
Electrical & Electronic (0.7%):
2,200 Keyence Corp............................... 271
20,000 Matsushita Electric Works.................. 172
5,000 Rohm Co.................................... 327
5,000 TDK Corp................................... 325
--------
1,095
--------
Electronic Components/Instruments (0.2%):
4,200 Hirose Electric............................ 243
10,000 NEC Corp................................... 121
--------
364
--------
</TABLE>
68
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Foreign Stocks, continued:
Japan, continued:
Food Products & Services (0.1%):
3,200 Matsumotokiyoshi(b)........................ $ 105
--------
Machinery & Equipment (0.2%):
32,000 Mitsubishi Heavy Industries, Ltd........... 254
--------
Pharmaceuticals (0.1%):
13,000 Daiichi Pharmaceuticals Co................. 208
--------
Retail - General Merchandise (0.1%):
1,000 Autobacs Seven Co. Ltd..................... 71
--------
Services (0.2%):
2,000 Nichii Gakkan Co........................... 100
3,000 Secom Co. Ltd.............................. 181
--------
281
--------
Telecommunications (0.1%):
18,000 Denki Kagaku Kogyo KK...................... 135
--------
Total Japan 3,430
--------
Malaysia (0.3%):
Construction (0.1%):
50,000 Sungei Way Holdings BHD.................... 148
--------
Engineering (0.2%):
27,000 United Engineers Ltd....................... 244
--------
Total Malaysia 392
--------
Mexico (0.2%):
Beverages & Tobacco (0.1%):
38,000 Fomento Economico Mexicano SA de CV........ 129
--------
Diversified (0.0%):
20,000 Grupo Carso SA de CV, Series A1............ 104
--------
Food & Beverages (0.1%):
60,000 Grupo Industrial Maseca SA de CV........... 76
--------
Total Mexico 309
--------
Netherlands (0.7%):
Broadcasting & Publishing (0.3%):
13,000 Elsevier NV................................ 220
1,600 Wolters Kluwer NV CVA...................... 212
--------
432
--------
Distribution (0.1%):
2,200 Hagemeyer NV............................... 176
--------
Office Equipment & Services (0.3%):
2,170 Ahrend Groep NV............................ 121
2,900 Oce-Van De Grinten NV...................... 314
--------
435
--------
Total Netherlands 1,043
--------
New Zealand (0.1%)
Appliances & Household Products (0.1%):
27,208 Fisher & Paykel Industries Ltd............. 107
--------
Coal (0.0%):
30,000 Fernz Corp. Ltd.(b)........................ 103
--------
Total New Zealand 210
--------
Norway (0.2%):
Printing & Publishing (0.1%):
9,000 Schibsted ASA.............................. 166
--------
Telecommunications (0.1%):
4,200 Nera ASA................................... 181
--------
Total Norway 347
--------
Philippines (0.1%):
Construction (0.1%):
165,000 C&P Homes.................................. 85
--------
Total Philippines 85
--------
Portugal (0.1%):
Beverages & Tobacco (0.1%):
6,435 Unicer-Uniad Cervejeira, SA................ 111
--------
Total Portugal 111
--------
Singapore (0.0%):
Diversified (0.0%):
29,000 Singapore Technologies Industrial Corp..... 73
--------
Total Singapore 73
--------
Spain (0.1%):
Services (0.1%):
16,000 Prosegur, CIA de Seguridad SA.............. 148
--------
Total Spain 148
--------
Sweden (0.1%):
Engineering (0.1%):
7,000 Sek Sandvik................................ 190
--------
Total Sweden 190
--------
Switzerland (0.3%):
Business Services (0.2%):
100 SGS Societe Generale de Surveillance
Holding SA.............................. 245
--------
Pharmaceuticals (0.1%):
30 Roche Holding AG-Genuss.................... 233
--------
Total Switzerland 478
--------
United Kingdom (1.4%):
Capital Goods (0.2%):
27,000 Powerscreen International PLC.............. 261
--------
</TABLE>
69
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Foreign Stocks, continued:
United Kingdom, continued:
Computer Software (0.2%):
20,000 Logica PLC................................. $ 314
--------
Consumer Goods & Services (0.1%):
12,000 Argos PLC(b)............................... 158
--------
Engineering (0.1%):
12,000 Siebe PLC(b)............................... 223
--------
Environmental Services (0.2%):
34,000 Rentokil Group PLC......................... 256
--------
Food Products & Services (0.2%):
25,000 Compass Group PLC.......................... 264
--------
Machinery & Equipment (0.1%):
28,000 TT Group PLC............................... 162
--------
Manufacturing-Consumer Goods (0.3%):
80,000 Halma PLC.................................. 259
60,000 Polypipe PLC............................... 238
--------
497
--------
Total United Kingdom 2,135
--------
Total Foreign Stocks 13,265
--------
Corporate Bonds (8.9%):
Automotive Finance (0.4%):
600,000 General Motors Acceptance Corp., 5.50%,
10/15/02, Putable 10/15/95 @ 100........ 666
--------
Banking (0.3%):
500,000 Continental Bank N.A., 11.25%, 7/1/01 ..... 533
--------
Consumer Goods & Services (0.9%):
1,325,000 Nike, Inc., 6.38%, 12/1/03 ................ 1,299
--------
Electrical & Electronic (0.7%):
1,100,000 Israel Electric Corp., Ltd., 8.10%,
12/15/96 ............................... 1,101
--------
Financial Services (3.6%):
500,000 Dean Witter Discover & Co., 6.00%, 3/1/98 . 500
1,900,000 Ford Credit Auto Lease Trust, 5.80%,
5/15/99 ................................ 1,890
850,000 Lehman Brothers Holdings, 6.90%, 7/15/99 .. 831
1,750,000 MBNA Capital, 8.28%, 12/1/26 .............. 1,748
495,047 Structured Asset Securities Co., 7.50%,
11/13/26 ............................... 498
--------
5,467
--------
Food Products (1.0%):
1,500,000 Associates Corp. N.A., 6.75%, 7/15/01 ..... 1,508
--------
Gas & Electric Utility (0.2%):
250,000 British Gas & Finance, 8.38%, 9/8/99 ...... 262
--------
Industrial Goods And Services (1.1%):
1,700,000 Coca-Cola Enterprises, 6.95%, 11/15/26 .... 1,621
--------
Leasing (0.2%):
250,000 Hertz Corp., 9.50%, 5/15/98 ............... 261
--------
Transportation & Shipping (0.5%):
700,000 Erac USA Finance Co., 6.35%, 1/15/01 ...... 690
--------
Total Corporate Bonds 13,408
--------
Medium Term Notes (1.1%):
Financial & Insurance (1.1%):
1,700,000 Beneficial Corp., 6.35%, 12/3/01 .......... 1,675
--------
Total Medium Term Notes 1,675
--------
Preferred Stock (0.2%):
1,100 Preference SAP AG.......................... 233
--------
Total Preferred Stock 233
--------
Rights (0.0%):
Construction (0.0%):
5,000 Sungei Way Holdings Bhd.................... 6
--------
Total Rights 6
--------
U.S. Government Agencies (11.0%):
Federal National Mortgage Assoc.
1,051,173 8.00%, 11/1/23, Pool # 190251 ............. 1,072
712,057 9.00%, 8/1/26, Pool #312317, Pool #352317 . 750
Government National Mortgage Assoc.
3,026,761 8.50%, 6/15/17, Pool #212183 ............. 3,127
478,094 6.50%, 9/15/23, Pool #345871 ............. 458
1,005,807 6.50%, 12/15/23, Pool #374650 ............ 959
4,677,180 7.00%, 12/15/23, Pool #780406 ............. 4,593
4,124,076 7.50%, 8/15/25, Pool #780213 .............. 4,141
Lehman FHA - Title 1 Loan Trust
1,500,000 6.78%, 3/25/08 .......................... 1,507
--------
Total U.S. Government Agencies 16,613
--------
U.S. Treasury Bills (3.3%):
5,000,000 6.13%, 12/31/01............................ 4,979
--------
Total U.S. Treasury Bills 4,979
--------
U.S. Treasury Bonds (1.2%):
1,750,000 6.75%, 8/15/26............................. 1,764
Total U.S. Treasury Bonds 1,764
--------
U.S. Treasury Notes (15.5%):
2,200,000 6.25%, 6/30/98............................. 2,215
400,000 7.75%, 11/30/99............................ 418
12,900,000 6.63%, 7/31/01............................. 13,101
4,000,000 6.88%, 5/15/06............................. 4,121
</TABLE>
70
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Balanced Allocation Fund (UNAUDITED)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
U.S. Treasury Notes, continued:
3,450,000 7.00%, 7/15/06............................. $ 3,584
--------
Total U.S. Treasury Notes 23,439
--------
Investment Companies (0.7%):
1,084,213 Parkstone Prime Obligation Fund
Institutional Shares.................... 1,084
--------
Total Investment Companies 1,084
--------
Total Investments, at value 134,553
--------
Repurchase Agreements (10.1%):
15,174,000 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by 16,106 Federal
National Mortgage Assoc. securities,
6.19%, 10/25/23, market value--$15,478).. $ 15,174
--------
Total Repurchase Agreements 15,174
--------
Total (Cost-- $137,598)(a) $149,727
========
</TABLE>
- --------------------
Percentages indicated are based on net assets of $150,946.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ........................ $ 13,524
Unrealized depreciation ........................ (1,395)
---------
Net unrealized appreciation .................... $ 12,129
=========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
71
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Limited Maturity Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- --------------------------------------- ---------
<S> <C> <C>
Commercial Paper (8.3%):
Financial Services (3.2%):
5,000 UBS Financial, 8.00%, 1/2/97 ...... $ 4,998
---------
Manufacturing-Capital Goods (2.5%):
4,000 Dover Corp., 5.75%, 1/27/97 ....... 3,983
---------
Natural Resources (2.6%):
4,000 South Carolina Fuel, 5.85%,
1/23/97 ......................... 3,985
---------
Total Commercial Paper 12,966
---------
Corporate Bonds (63.0%):
Aerospace (0.6%):
1,000 British Aerospace Finance, 7.50%,
6/11/97* ........................ 1,006
---------
Airline Leasing (2.0%):
3,093 Alps, 7.15%, 9/15/04, Series 94-1 .. 3,126
---------
Asset-Backed (6.7%):
3,000 General Electric Capital Services,
Inc., 7.50%, 5/25/20 ............ 3,023
422 Greentree Financial Corp., 5.60%,
4/15/19, Series 1994-I, Class A1 . 422
1,410 Greentree Financial Corp., 5.90%,
1/15/21, Series 1995-F ........... 1,412
2,267 Green Tree Home Improvement Loan
Trust, 7.85%, 7/15/09 ........... 2,335
228 Merrill Lynch Mortgage Investors,
Inc., 9.80%, 10/15/08 ........... 230
3,203 Structured Asset Securities Corp.,
5.75%, 2/25/08 .................. 3,181
---------
10,603
---------
Automotive Finance (0.7%):
1,076 USAA Auto Loan Grantor Trust, Series
1993-1A, 3.90%, 3/15/99 ......... 1,076
---------
Banking (2.7%):
3,000 Barclays, 11.63%, 5/1/03 .......... 3,195
1,000 Wachovia Bank, 6.70%, 4/14/99 ..... 1,010
---------
4,205
---------
Electric Utility (4.8%):
1,750 Iberdola Corp., 7.50%, 10/1/02 .... 1,818
2,675 National Rural Utilities, 9.64%,
5/19/97 ......................... 2,708
3,000 Southern California Edison, 5.90%,
1/15/97 ......................... 3,000
---------
7,526
---------
Financial Services (21.9%):
5,000 AT&T Capital Corp., 6.49%, 5/17/99.. 5,000
5,000 Corp. Andina De Fomento, 7.38%,
7/21/00 ......................... 5,056
3,000 Fletcher Challenge, 9.25%, 5/15/97.. 3,038
5,000 Lehman Brothers Holdings, 6.89%,
10/10/00 ........................ 5,000
5,000 Salomon Inc., 6.63%, 11/30/00 ..... 4,963
5,000 Sanwa Business Credit., Corp, 7.25%,
9/15/01 ......................... 5,106
990 Structured Asset Securities Co.,
7.50%, 11/13/26 ................. 996
5,000 USAA Capital Corp., 6.55%, 9/20/99.. 5,031
---------
34,190
---------
Foreign Electric Utility (2.6%):
4,000 Matshushita Electric Ind., 7.25%,
8/1/02 .......................... 4,120
---------
Gas Utility (2.5%):
3,750 British Gas & Finance, 8.38%,
9/8/99 .......................... 3,927
---------
Government Agency (2.3%):
3,474 Government Trust Certificates,
8.55%, 11/15/97 ................. 3,516
---------
Governments(Foreign) (3.9%):
4,000 Republic of Slovenia, 7.00%,
8/6/01 .......................... 4,040
2,000 Republic of Slovenia, 7.00%,
8/6/01 .......................... 2,025
---------
6,065
---------
Homebuilding & Related Financial Services (2.5%):
3,777 LB Mortgage Trust, 8.00%, 3/20/99,
Series 91-92, Class A1 ........... 3,843
---------
Industrial Goods & Services (2.6%):
4,000 Sears, Roebuck Acceptance Corp,
7.13%, 9/12/01 .................. 4,065
---------
Leasing (5.9%):
4,300 Erac USA Finance Co., 6.35%, 4,241
1/15/01 .........................
4,750 Hertz Corp., 9.50%, 5/15/98 ....... 4,958
---------
9,199
---------
Oil Products & Services (1.3%):
2,000 Burmah Castrol BV, 7.00%, 12/15/97 2,023
---------
Total Corporate Bonds 98,490
---------
Foreign (1.3%):
2,000 Tokyo Metro Government, 10.38%,
10/20/97 ........................ 2,068
---------
Total Foreign 2,068
---------
U.S. Government Agencies (1.3%):
Lehman FHA - Title 1 Loan Trust
2,000 6.78%, 3/25/08...................... 2,010
---------
Total U.S. Government Agencies 2,010
---------
U.S. Treasury Bills (1.9%):
3,000 12/31/97............................ 2,989
---------
Total U.S. Treasury Bills 2,989
---------
U.S. Treasury Notes (18.9%):
2,100 6.25%, 6/30/98...................... 2,114
5,000 6.38%, 5/15/99...................... 5,044
8,300 7.75%, 1/31/00...................... 8,682
4,300 6.63%, 7/31/01...................... 4,367
9,350 6.25%, 10/31/01..................... 9,354
---------
Total U.S. Treasury Notes 29,561
---------
Total Investments, at value 148,084
---------
</TABLE>
72
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Limited Maturity Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- --------------------------------------- ---------
<S> <C> <C>
Repurchase Agreements (3.7%):
5,863 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by 10,549 various
U.S. Government Agency
securities, 5.50% - 7.50%, 6/1/03
- 7/1/27, market value--$5,969).... 5,863
---------
Total Repurchase Agreements 5,863
---------
Total (Cost--$154,837)(a) $153,947
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $156,409.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized depreciation of securitites as follows:
<TABLE>
<S> <C>
Unrealized appreciation ..................................... $ 620
Unrealized depreciation ..................................... (1,510)
-------
Net unrealized depreciation ................................. $ (890)
=======
</TABLE>
* Represents a restricted security, purchased under Rule 144A, which is exempt
from registration under the Securities Act of 1933.
See notes to financial statements.
73
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE PARKSTONE GROUP OF FUNDS
DECEMBER 31, 1996
Intermediate Government Obligations Fund (UNAUDITED)
(Amounts in Thousands)
Principal Security Market
Amount Description Value
- ----------- -------------------------------------------- ----------
<S> <C> <C>
Asset Backed Bonds (1.8%):
4,025 General Electric Capital Services, Inc.,
7.50%, 5/25/20 ........................ $ 4,055
---------
Total Asset Backed Bonds 4,055
---------
Collateralized Mortgage Obligations (1.3%):
539 Drexel Burnham Lambert Trust, 8.60%,
6/1/15 ................................ 544
680 Goldman Sachs, 9.95%, 11/1/17 ............ 698
1,372 Government Trust Certificates, 8.55%,
11/15/97 .............................. 1,388
577 Merrill Lynch Trust, 0.00%, 5/1/13 ....... 432
---------
Total Collateralized Mortgage Obligations 3,062
---------
U.S. Government Agencies (28.3%):
Federal Home Loan Mortgage Corp.
12 6.50%, 3/1/97 , Pool 294286................ 12
1,242 8.00%, 11/1/09 , Pool 538235............... 1,263
Federal National Mortgage Assoc.
6,000 7.38%, 3/28/05 ........................... 6,268
7,000 7.50%, 8/25/22, Series 1994-93 ............ 7,246
1,862 8.25%, 7/1/17 , Pool #124439............... 1,908
1,767 9.00%, 8/1/09 , Pool #84251................ 1,854
1,066 9.00%, 7/25/20, Series 90-84 .............. 1,126
2,883 9.25%, 4/25/18 , Pool # 1988-7............. 3,094
2,582 11.50%, 5/1/10 , Pool # 313025............. 2,781
4,139 13.00%, 8/1/15 , Pool # 100044............. 4,896
GMAC FHA Project Loans
3,096 7.43%, 7/1/21 ............................ 3,137
Government National Mortgage Assoc.
6,987 7.00%, 12/15/23 , Pool #780406............. 6,860
4,405 7.00%, 1/20/25 , Pool # 8587............... 4,507
7,470 7.50%, 8/15/25 , Pool #780213.............. 7,500
98 9.00%, 9/15/04 , Pool # 4029............... 103
60 9.00%, 10/15/04 , Pool # 4265.............. 64
79 9.00%, 12/15/04 , Pool # 4309.............. 83
65 9.00%, 12/15/04 , Pool # 4790.............. 68
70 9.00%, 12/15/04 , Pool # 4991.............. 73
116 9.00%, 1/15/05 , Pool # 4610............... 122
39 9.00%, 1/15/05 , Pool # 4820............... 41
47 9.00%, 1/15/05 , Pool # 4921............... 49
29 9.00%, 1/15/05 , Pool # 4961............... 30
66 9.00%, 4/15/05 , Pool # 8328............... 69
140 9.00%, 9/15/08 , Pool # 24863.............. 148
158 9.00%, 9/15/08 , Pool # 25395.............. 166
181 9.00%, 10/15/08 , Pool # 23554............. 191
162 9.00%, 12/15/08 , Pool # 28156............. 171
81 9.00%, 12/15/08 , Pool # 29022............. 86
76 9.00%, 2/15/09 , Pool # 30538.............. 80
73 9.00%, 4/15/09 , Pool # 31183.............. 77
81 9.00%, 4/15/09 , Pool # 31362.............. 85
227 9.00%, 5/15/09 , Pool # 34103.............. 239
83 9.00%, 5/15/09 , Pool # 38055.............. 87
237 9.50%, 12/20/13 , Pool # 119221............ 255
252 9.50%, 10/20/14 , Pool # 121161............ 271
20 9.50%, 12/20/15 , Pool # 000456............ 21
71 9.50%, 1/20/16 , Pool # 149721............. 76
376 9.50%, 2/20/16 , Pool # 150634............. 403
135 9.50%, 3/20/16 , Pool # 149729............. 145
542 9.50%, 4/20/16 , Pool # 149718............. 582
465 9.50%, 4/20/16 , Pool # 152042............. 498
83 9.50%, 5/20/16 , Pool # 158468............. 89
108 9.50%, 5/20/16 , Pool # 160304............. 115
540 9.50%, 6/20/16 , Pool # 166048............. 579
232 9.50%, 7/20/16 , Pool # 002590............. 249
132 9.50%, 9/20/16 , Pool # 002626............. 142
171 9.50%, 9/20/16 , Pool # 170929............. 184
136 9.50%, 8/20/17 , Pool # 214044............. 146
722 9.50%, 9/20/17 , Pool # 836................ 774
146 9.50%, 9/20/17 , Pool # 235042............. 157
76 9.50%, 6/20/18 , Pool # 250860............. 82
24 9.50%, 8/20/18 , Pool # 001038............. 25
98 9.50%, 12/20/18 , Pool # 263506............ 105
32 9.50%, 12/20/19 , Pool # 001309............ 34
60 9.50%, 1/20/20 , Pool # 1327............... 64
85 9.50%, 2/20/21 , Pool # 21561.............. 90
Guaranteed Export Trust
798 6.61%, 6/15/99, Series 94-d ............... 805
Panama Aid
4,695 6.66%, 12/31/03 .......................... 4,676
---------
Total U.S. Government Agencies 65,051
---------
U.S. Treasury Notes (69.2%):
11,700 5.63%, 11/30/98............................ 11,646
19,600 6.13%, 8/31/98............................. 19,688
23,600 6.25%, 6/30/98............................. 23,757
5,000 6.25%, 10/31/01............................ 5,003
46,100 6.38%, 3/31/01............................. 46,415
11,600 6.50%, 8/31/01............................. 11,726
2,000 7.00%, 7/15/06............................. 2,078
14,900 7.75%, 11/30/99............................ 15,566
10,800 7.75%, 1/31/00............................. 11,299
10,600 7.88%, 11/15/04............................ 11,567
---------
Total U.S. Treasury Notes 158,745
---------
Total Investments, at value 230,913
---------
</TABLE>
Continued
74
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Intermediate Government Obligations Fund (UNAUDITED)
(Amounts in Thousands)
Principal Security Market
Amount Description Value
--------- ----------------------------------------- ---------
<S> <C> <C>
Repurchase Agreements (0.2%):
553 Goldman Sachs, 6.90%, 1/2/97,
(Collateralized by 593 Federal National
Mortgage Assoc., 7.00%, 2/1/26, market
value--$564)............................. $ 553
--------
Total Repurchase Agreements 553
--------
Total (Cost-- $231,146)(a) $231,466
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $229,553.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<CAPTION>
<S> <C>
Unrealized appreciation .................................. $ 1,381
Unrealized depreciation .................................. (1,061)
--------
Net unrealized appreciation .............................. $ 320
========
</TABLE>
See notes to financial statements.
75
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------ ---------
<S> <C> <C>
Corporate Bonds (1.9%):
Collateral Mortgage Obligations (1.9%):
583 Cityfed Mortgage Trust, 10.00%, 1/1/18..... $ 578
1,831 Drexel Burnham Lambert, Series H, Class 4,
8.50%, 4/1/17........................... 1,873
1,000 MDC Asset Investors Trust, 7.00%, 2/20/19.. 975
669 Prudential Bache Trust Series 12 Class F.,
8.48%, 10/20/20......................... 710
---------
Total Corporate Bonds 4,136
---------
U.S. Government Agencies (72.3%):
Federal Home Loan Mortgage Corp. (18.0%):
1 7.00%, 1/1/02.............................. 1
85 8.00%, 12/1/01............................. 88
230 8.00%, 2/1/02.............................. 237
132 8.00%, 3/1/02.............................. 136
59 8.00%, 4/1/02.............................. 61
161 8.00%, 6/1/02.............................. 166
42 8.00%, 7/1/02.............................. 43
357 8.00%, 9/1/02.............................. 368
63 8.75%, 8/1/02.............................. 66
44 8.75%, 6/1/04.............................. 46
80 8.75%, 3/1/05.............................. 83
78 8.75%, 12/1/06............................. 82
232 8.75%, 8/1/07.............................. 242
161 8.75%, 1/1/08.............................. 169
61 8.75%, 3/1/08.............................. 64
21 8.75%, 4/1/08.............................. 22
145 8.75%, 5/1/08.............................. 151
57 8.75%, 7/1/08.............................. 60
129 8.75%, 10/1/08............................. 135
193 8.75%, 11/1/08............................. 202
139 8.75%, 3/1/09.............................. 146
17 8.75%, 5/1/09.............................. 17
68 8.75%, 8/1/09.............................. 71
96 8.75%, 9/1/09.............................. 100
55 8.75%, 2/1/10.............................. 58
129 8.75%, 6/1/10.............................. 135
159 8.75%, 8/1/10.............................. 166
88 8.75%, 12/1/10............................. 92
26 8.75%, 7/1/12.............................. 28
191 8.75%, 10/1/14............................. 200
20 8.75%, 6/1/16.............................. 21
194 8.75%, 8/1/16.............................. 203
26 8.75%, 1/1/17.............................. 27
356 8.75%, 2/1/17.............................. 372
57 8.75%, 3/1/17.............................. 59
851 8.75%, 5/1/17.............................. 890
115 8.75%, 7/1/17.............................. 121
55 8.75%, 8/1/17.............................. 57
150 9.00%, 6/1/01.............................. 157
232 9.00%, 7/1/01.............................. 241
136 9.00%, 8/1/01.............................. 143
25 9.00%, 9/1/01.............................. 26
28 9.00%, 12/1/01............................. 29
52 9.00%, 1/1/02.............................. 55
76 9.00%, 3/1/02.............................. 80
26 9.00%, 2/1/05.............................. 27
140 9.00%, 8/1/05.............................. 145
343 9.00%, 12/1/05............................. 357
94 9.00%, 1/1/06.............................. 98
163 9.00%, 1/1/08.............................. 172
203 9.00%, 9/1/09.............................. 211
176 9.00%, 11/1/09............................. 186
369 9.00%, 2/1/10.............................. 389
1,732 9.00%, 6/1/14.............................. 1,829
32 9.00%, 10/1/16............................. 34
1,936 9.00%, 10/1/17............................. 2,045
46 9.50%, 3/1/01.............................. 49
157 9.50%, 7/1/01.............................. 165
99 9.50%, 9/1/01.............................. 104
159 9.50%, 10/1/01............................. 167
103 9.50%, 11/1/01............................. 109
87 9.50%, 12/1/01............................. 91
57 9.50%, 6/1/02.............................. 60
193 9.50%, 9/1/02.............................. 204
22 9.50%, 10/1/02............................. 23
25 9.50%, 11/1/02............................. 26
96 9.50%, 12/1/02............................. 101
459 9.50%, 2/1/03.............................. 483
85 9.50%, 6/1/03.............................. 90
91 9.50%, 10/1/03............................. 95
54 9.50%, 11/1/03............................. 57
142 9.50%, 12/1/03............................. 150
146 9.50%, 5/1/04.............................. 154
463 9.50%, 6/1/04.............................. 488
31 9.50%, 7/1/04.............................. 32
97 9.50%, 9/1/04.............................. 103
82 9.50%, 10/1/04............................. 87
91 9.50%, 5/1/05.............................. 96
3,011 9.50%, 6/1/11.............................. 3,233
4,624 9.50%, 12/15/18............................ 4,810
1,473 9.50%, 10/1/20............................. 1,593
24 10.00%, 7/1/00............................. 26
19 10.00%, 9/1/00............................. 20
94 10.00%, 12/1/00............................ 99
13 10.00%, 1/1/01............................. 13
56 10.00%, 2/1/01............................. 59
163 10.00%, 3/1/01............................. 173
19 10.00%, 4/1/01............................. 20
7 10.00%, 7/1/01............................. 7
64 10.00%, 8/1/01............................. 67
176 10.00%, 9/1/01............................. 186
</TABLE>
76
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(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:
142 10.00%, 10/1/01............................ $ 151
53 10.00%, 11/1/01............................ 56
262 10.00%, 10/1/02............................ 276
22 10.00%, 11/1/02............................ 23
146 10.00%, 12/1/02............................ 154
144 10.00%, 3/1/03............................. 152
46 10.00%, 9/1/03............................. 48
211 10.00%, 10/1/03............................ 223
29 10.00%, 11/1/03............................ 31
85 10.00%, 12/1/03............................ 90
44 10.00%, 2/1/04............................. 47
261 10.00%, 3/1/04............................. 275
252 10.00%, 4/1/04............................. 266
197 10.00%, 5/1/04............................. 208
333 10.00%, 6/1/04............................. 352
79 10.00%, 8/1/04............................. 83
77 10.00%, 5/1/05............................. 81
89 10.00%, 6/1/05............................. 94
1,057 10.00%, 9/1/16............................. 1,142
60 10.50%, 8/1/99............................. 63
190 10.50%, 6/1/00............................. 200
327 10.50%, 7/1/00............................. 346
52 10.50%, 8/1/00............................. 55
82 10.50%, 9/1/00............................. 86
337 10.50%, 10/1/00............................ 356
764 10.50%, 11/1/00............................ 806
256 10.50%, 12/1/00............................ 270
241 10.50%, 1/1/01............................. 255
31 10.50%, 2/1/01............................. 33
39 10.50%, 3/1/01............................. 41
4 10.50%, 4/1/01............................. 4
124 10.50%, 11/1/02............................ 131
219 10.50%, 12/1/02............................ 231
16 10.50%, 2/1/03............................. 17
68 10.50%, 4/1/04............................. 72
19 10.50%, 5/1/04............................. 20
290 10.50%, 7/1/04............................. 306
21 11.00%, 4/1/00............................. 22
191 11.00%, 5/1/00............................. 202
218 11.00%, 8/1/00............................. 231
174 11.00%, 9/1/00............................. 183
631 11.00%, 10/1/00............................ 666
112 11.00%, 1/1/01............................. 118
197 11.00%, 2/1/01............................. 208
507 11.00%, 4/1/01............................. 535
2 11.50%, 9/1/98............................. 2
19 11.50%, 3/1/99............................. 20
114 11.50%, 7/1/99............................. 121
27 11.50%, 9/1/99............................. 28
3 11.50%, 1/1/00............................. 3
95 11.50%, 2/1/00............................. 101
276 11.50%, 5/1/00............................. 294
15 11.50%, 7/1/00............................. 16
24 11.50%, 9/1/00............................. 25
65 11.50%, 10/1/00............................ 70
70 11.50%, 11/1/00............................ 75
9 11.50%, 12/1/00............................ 10
90 11.50%, 1/1/01............................. 97
18 11.50%, 4/1/01............................. 19
78 11.75%, 1/1/13............................. 88
42 11.75%, 6/1/14............................. 48
101 11.75%, 5/1/15............................. 114
20 12.00%, 11/1/99............................ 21
6 12.00%, 12/1/99............................ 7
116 12.00%, 1/1/00............................. 124
239 12.00%, 3/1/00............................. 257
391 12.00%, 4/1/00............................. 419
50 12.00%, 5/1/00............................. 54
19 12.00%, 6/1/00............................. 20
41 12.00%, 7/1/00............................. 44
73 12.00%, 9/1/00............................. 78
42 12.00%, 11/1/00............................ 45
119 12.00%, 11/1/01............................ 127
1,667 12.25%, 8/1/15............................. 1,907
46 12.50%, 7/1/99............................. 50
34 12.50%, 8/1/99............................. 37
201 12.50%, 10/1/99............................ 217
34 12.50%, 11/1/99............................ 36
49 12.50%, 7/1/00............................. 52
98 12.50%, 4/1/01............................. 105
Federal National Mortgage Assoc. (9.4%):
3,000 7.50%, 8/25/22............................. 3,105
1,369 8.50%, 9/1/07.............................. 1,418
50 9.00%, 4/1/97.............................. 51
106 9.00%, 9/1/97.............................. 109
102 9.00%, 10/1/97............................. 105
21 9.00%, 11/1/97............................. 21
7,075 9.00%, 10/25/00............................ 7,517
78 9.00%, 11/1/06............................. 82
1,919 9.00%, 7/25/20............................. 2,027
29 9.50%, 6/1/97.............................. 30
71 10.00%, 10/1/00............................ 75
20 10.00%, 3/1/01............................. 21
81 10.00%, 4/1/01............................. 85
41 10.00%, 8/1/01............................. 43
58 10.00%, 10/1/01............................ 62
26 10.00%, 11/1/01............................ 28
58 10.00%, 12/1/02............................ 61
180 10.00%, 1/1/03............................. 191
8 10.00%, 1/1/04............................. 8
0 10.00%, 6/1/04............................. 2
7 10.00%, 8/1/05............................. 7
</TABLE>
77
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ---------- ---------------------------------------------- -------
<S> <C> <C>
U.S. Government Agencies, continued:
Federal National Mortgage Assoc., continued:
254 10.00%, 10/1/05............................ $ 267
155 10.00%, 11/1/05............................ 163
692 10.00%, 1/1/07............................. 731
154 10.50%, 9/1/00............................. 161
66 10.50%, 10/1/00............................ 70
68 10.50%, 11/1/00............................ 72
48 10.50%, 12/1/00............................ 51
20 10.50%, 1/1/01............................. 21
114 10.50%, 2/1/01............................. 120
12 10.50%, 6/1/01............................. 12
50 10.50%, 8/1/01............................. 53
93 10.50%, 1/1/04............................. 98
32 10.50%, 2/1/04............................. 34
38 10.50%, 5/1/04............................. 40
159 11.00%, 8/1/00............................. 168
107 11.00%, 10/1/00............................ 113
78 11.00%, 11/1/00............................ 82
56 11.00%, 12/1/00............................ 59
134 11.00%, 1/1/01............................. 141
20 11.00%, 2/1/01............................. 21
130 11.00%, 6/1/01............................. 138
307 11.00%, 9/1/06............................. 325
75 11.25%, 6/1/13............................. 84
115 11.25%, 5/1/14............................. 129
9 11.50%, 11/1/98............................ 10
10 11.50%, 12/1/98............................ 11
24 11.50%, 11/1/99............................ 26
41 11.50%, 2/1/00............................. 44
30 11.50%, 3/1/00............................. 32
27 11.50%, 6/1/00............................. 29
53 11.50%, 8/1/00............................. 57
52 11.50%, 9/1/00............................. 56
88 11.50%, 11/1/00............................ 94
31 11.50%, 12/1/00............................ 34
14 11.50%, 1/1/01............................. 15
129 11.50%, 2/1/01............................. 138
7 12.00%, 1/1/99............................. 7
22 12.00%, 7/1/99............................. 24
2 12.00%, 10/1/99............................ 2
25 12.00%, 4/1/00............................. 27
58 12.00%, 5/1/00............................. 63
98 12.00%, 7/1/00............................. 106
74 12.00%, 8/1/00............................. 79
35 12.00%, 9/1/00............................. 38
103 12.00%, 10/1/00............................ 110
57 12.50%, 2/1/00............................. 61
17 12.50%, 4/1/00............................. 19
11 12.50%, 5/1/00............................. 12
99 12.50%, 6/1/00............................. 106
157 12.50%, 7/1/00............................. 168
525 12.50%, 5/1/15............................. 597
Government National Mortgage Assoc. (44.8%):
4,120 6.50%, 11/15/23............................ $ 3,951
3,639 7.00%, 12/15/23............................ 3,574
120 8.50%, 8/15/03............................. 127
41 9.00%, 10/15/04............................ 43
90 9.00%, 11/15/04............................ 94
142 9.00%, 12/15/04............................ 149
115 9.00%, 1/15/05............................. 122
98 9.00%, 2/15/05............................. 104
78 9.00%, 3/15/05............................. 82
91 9.00%, 9/15/08............................. 96
691 9.00%, 10/15/08............................ 726
149 9.00%, 11/15/08............................ 157
503 9.00%, 12/15/08............................ 530
39 9.00%, 1/15/09............................. 41
145 9.00%, 2/15/09............................. 153
203 9.00%, 3/15/09............................. 214
219 9.00%, 4/15/09............................. 230
323 9.00%, 5/15/09............................. 339
60 9.00%, 6/15/09............................. 63
57 9.00%, 1/15/10............................. 60
117 9.00%, 10/15/10............................ 123
75 9.00%, 4/15/16............................. 79
812 9.00%, 10/20/16............................ 849
798 9.00%, 6/20/19............................. 834
427 9.00%, 12/20/19............................ 446
560 9.00%, 3/20/20............................. 585
23 9.50%, 9/15/98............................. 25
29 9.50%, 5/15/99............................. 30
43 9.50%, 4/15/01............................. 45
105 9.50%, 10/15/01............................ 112
132 9.50%, 11/20/01............................ 142
77 9.50%, 11/15/02............................ 81
102 9.50%, 3/20/03............................. 110
40 9.50%, 7/15/03............................. 42
146 9.50%, 2/15/04............................. 154
159 9.50%, 7/15/04............................. 169
119 9.50%, 2/15/05............................. 126
127 9.50%, 4/15/05............................. 134
50 9.50%, 5/15/05............................. 52
59 9.50%, 6/15/05............................. 63
119 9.50%, 12/15/05............................ 127
157 9.50%, 9/15/06............................. 166
1,199 9.50%, 6/15/09............................. 1,295
2,225 9.50%, 7/15/09............................. 2,405
2,301 9.50%, 8/15/09............................. 2,486
2,898 9.50%, 9/15/09............................. 3,128
4,392 9.50%, 10/15/09............................ 4,743
1,057 9.50%, 11/15/09............................ 1,142
342 9.50%, 12/15/09............................ 370
176 9.50%, 4/15/13............................. 190
63 9.50%, 7/15/13............................. 69
</TABLE>
78
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------ ---------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
8 9.50%, 11/15/15............................ $ 8
154 9.50%, 2/15/16............................. 167
356 9.50%, 3/15/16............................. 385
544 9.50%, 4/15/16............................. 587
890 9.50%, 5/15/16............................. 962
950 9.50%, 6/15/16............................. 1,026
446 9.50%, 7/15/16............................. 483
452 9.50%, 8/15/16............................. 488
699 9.50%, 9/15/16............................. 755
185 9.50%, 10/15/16............................ 200
190 9.50%, 11/15/16............................ 206
284 9.50%, 12/15/16............................ 307
257 9.50%, 1/15/17............................. 278
68 9.50%, 2/15/17............................. 74
103 9.50%, 3/15/17............................. 112
99 9.50%, 4/15/17............................. 107
413 9.50%, 6/15/17............................. 447
290 9.50%, 7/15/17............................. 312
586 9.50%, 8/15/17............................. 632
757 9.50%, 9/15/17............................. 817
327 9.50%, 10/15/17............................ 353
37 9.50%, 11/15/17............................ 40
61 9.50%, 12/15/17............................ 67
48 9.50%, 1/15/18............................. 52
103 9.50%, 2/15/18............................. 111
28 9.50%, 3/15/18............................. 31
277 9.50%, 4/15/18............................. 300
175 9.50%, 5/15/18............................. 190
288 9.50%, 6/15/18............................. 312
276 9.50%, 7/15/18............................. 298
407 9.50%, 8/15/18............................. 440
218 9.50%, 9/15/18............................. 236
37 9.50%, 10/15/18............................ 40
66 9.50%, 11/15/18............................ 72
263 9.50%, 12/15/18............................ 285
142 9.50%, 1/15/19............................. 154
271 9.50%, 2/15/19............................. 293
60 9.50%, 3/15/19............................. 65
103 9.50%, 4/15/19............................. 112
117 9.50%, 8/15/19............................. 126
59 9.50%, 9/15/19............................. 63
41 9.50%, 10/15/19............................ 44
174 9.50%, 11/15/19............................ 188
123 9.50%, 12/15/19............................ 133
35 9.50%, 1/15/20............................. 38
56 9.50%, 2/15/20............................. 61
107 9.50%, 3/15/20............................. 116
22 9.50%, 4/15/20............................. 23
207 9.50%, 5/15/20............................. 224
119 9.50%, 6/15/20............................. 128
13 9.50%, 7/15/20............................. 14
146 9.50%, 8/15/20............................. 159
22 9.50%, 9/15/20............................. 23
75 9.50%, 10/15/20............................ 80
99 9.50%, 11/15/20............................ 107
42 9.50%, 2/15/21............................. 46
995 9.50%, 4/15/21............................. 1,075
117 9.50%, 5/15/21............................. 127
76 9.50%, 6/15/21............................. 83
83 9.50%, 7/15/21............................. 90
19 9.50%, 8/15/21............................. 21
104 9.50%, 11/15/21............................ 112
48 9.50%, 5/15/22............................. 52
99 10.00%, 9/20/00............................ 106
47 10.00%, 11/20/00........................... 50
22 10.00%, 12/15/00........................... 23
7 10.00%, 1/15/01............................ 8
108 10.00%, 2/15/01............................ 115
153 10.00%, 3/15/01............................ 163
12 10.00%, 4/15/01............................ 13
13 10.00%, 1/15/03............................ 14
51 10.00%, 1/20/03............................ 55
60 10.00%, 9/15/03............................ 64
16 10.00%, 12/15/03........................... 17
117 10.00%, 3/15/04............................ 124
72 10.00%, 4/15/04............................ 77
527 10.00%, 5/15/04............................ 559
260 10.00%, 6/15/04............................ 276
44 10.00%, 6/20/04............................ 47
88 10.00%, 7/15/04............................ 93
50 10.00%, 8/15/04............................ 53
25 10.00%, 9/15/04............................ 27
52 10.00%, 10/15/04........................... 55
39 10.00%, 5/15/05............................ 41
216 10.00%, 7/15/06............................ 229
12 10.50%, 12/15/97........................... 12
18 10.50%, 3/15/98............................ 19
30 10.50%, 4/15/98............................ 32
44 10.50%, 5/15/98............................ 46
40 10.50%, 6/15/98............................ 42
17 10.50%, 8/15/98............................ 18
20 10.50%, 11/15/98........................... 21
9 10.50%, 2/15/99............................ 9
7 10.50%, 3/15/99............................ 8
34 10.50%, 9/15/00............................ 36
63 10.50%, 10/15/00........................... 67
109 10.50%, 11/15/00........................... 115
14 10.50%, 12/15/00........................... 15
5 10.50%, 1/15/01............................ 5
17 10.50%, 2/15/01............................ 18
119 10.50%, 2/20/01............................ 125
49 10.50%, 8/15/01............................ 53
</TABLE>
Continued
79
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------ ---------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
54 10.50%, 12/20/04........................... $ 56
8 11.00%, 12/15/97........................... 9
27 11.00%, 1/15/98............................ 29
5 11.00%, 2/15/98............................ 5
5 11.00%, 4/15/98............................ 6
66 11.00%, 11/15/98........................... 70
26 11.00%, 12/15/98........................... 28
20 11.00%, 4/15/00............................ 21
211 11.00%, 5/15/00............................ 224
162 11.00%, 6/15/00............................ 172
49 11.00%, 8/15/00............................ 51
153 11.00%, 9/15/00............................ 162
13 11.00%, 10/15/00........................... 14
186 11.00%, 11/15/00........................... 197
254 11.00%, 12/15/00........................... 271
232 11.00%, 1/15/01............................ 247
32 11.00%, 1/20/01............................ 34
60 11.00%, 2/15/01............................ 64
148 11.00%, 3/15/04............................ 159
64 11.00%, 6/15/04............................ 68
148 11.00%, 8/15/04............................ 158
27 11.50%, 1/15/99............................ 29
11 11.50%, 6/15/99............................ 12
12 11.50%, 7/15/99............................ 13
51 11.50%, 9/15/99............................ 54
46 11.50%, 10/15/99........................... 49
22 11.50%, 1/20/00............................ 23
42 11.50%, 2/15/00............................ 45
5 11.50%, 3/15/00............................ 6
9 11.50%, 4/15/00............................ 10
101 11.50%, 5/15/00............................ 108
2 11.50%, 6/15/00............................ 2
30 11.50%, 7/15/00............................ 32
19 11.50%, 8/15/00............................ 21
5 11.50%, 12/15/00........................... 5
134 11.50%, 6/20/04............................ 148
17 11.50%, 3/15/11............................ 19
20 11.50%, 4/15/13............................ 23
39 11.50%, 6/15/13............................ 43
36 11.50%, 8/15/13............................ 41
57 11.50%, 9/20/13............................ 63
3 11.50%, 10/20/13........................... 3
5 11.50%, 11/20/13........................... 6
72 11.50%, 8/15/14............................ 81
31 11.50%, 10/15/14........................... 35
81 11.50%, 5/15/15............................ 92
26 11.50%, 6/20/15............................ 29
10 11.50%, 12/15/15........................... 11
108 11.50%, 3/20/18............................ 119
129 11.50%, 4/20/19............................ 143
61 11.50%, 5/20/19............................ 67
59 11.50%, 5/20/21............................ 65
18 11.75%, 12/15/97........................... 20
6 11.75%, 2/15/98............................ 6
6 11.75%, 9/15/98............................ 6
34 11.75%, 10/15/98........................... 35
3 11.75%, 11/15/98........................... 3
36 11.75%, 12/15/98........................... 39
15 11.75%, 3/15/99............................ 16
104 11.75%, 4/15/99............................ 115
247 11.75%, 5/15/99............................ 271
7 12.00%, 9/15/98............................ 8
71 12.00%, 10/15/98........................... 75
43 12.00%, 11/15/98........................... 46
13 12.00%, 12/15/98........................... 14
50 12.00%, 1/15/99............................ 53
5 12.00%, 2/15/99............................ 6
26 12.00%, 3/15/99............................ 27
1 12.00%, 5/20/99............................ 1
19 12.00%, 7/20/99............................ 20
8 12.00%, 8/20/99............................ 9
116 12.00%, 5/15/00............................ 123
80 12.00%, 6/15/00............................ 85
56 12.00%, 6/20/00............................ 59
33 12.00%, 7/15/00............................ 35
45 12.00%, 7/20/00............................ 47
51 12.00%, 8/20/00............................ 53
21 12.00%, 10/15/00........................... 22
40 12.00%, 8/15/12............................ 46
138 12.00%, 11/15/12........................... 159
344 12.00%, 12/15/12........................... 393
146 12.00%, 1/15/13............................ 166
85 12.00%, 2/15/13............................ 97
39 12.00%, 3/15/13............................ 45
8 12.00%, 4/15/13............................ 9
1 12.00%, 5/15/13............................ 1
198 12.00%, 8/15/13............................ 222
160 12.00%, 9/15/13............................ 181
52 12.00%, 11/15/13........................... 59
11 12.00%, 12/15/13........................... 13
108 12.00%, 1/15/14............................ 122
103 12.00%, 2/15/14............................ 118
260 12.00%, 3/15/14............................ 298
101 12.00%, 4/15/14............................ 117
263 12.00%, 5/15/14............................ 302
46 12.00%, 6/15/14............................ 53
54 12.00%, 9/15/14............................ 61
37 12.00%, 12/15/14........................... 43
158 12.00%, 1/15/15............................ 181
377 12.00%, 2/15/15............................ 432
414 12.00%, 3/15/15............................ 474
513 12.00%, 4/15/15............................ 588
</TABLE>
80
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------- ------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
507 12.00%, 5/15/15............................ $ 580
860 12.00%, 6/15/15............................ 984
329 12.00%, 7/15/15............................ 376
179 12.00%, 8/15/15............................ 205
111 12.00%, 9/15/15............................ 128
64 12.00%, 10/15/15........................... 73
25 12.00%, 11/15/15........................... 28
28 12.00%, 12/15/15........................... 33
124 12.00%, 1/15/16............................ 142
35 12.00%, 5/15/18............................ 39
247 12.50%, 4/15/10............................ 285
272 12.50%, 5/15/10............................ 315
325 12.50%, 6/15/10............................ 375
55 12.50%, 7/15/10............................ 62
35 12.50%, 8/15/10............................ 40
202 12.50%, 9/15/10............................ 234
142 12.50%, 10/15/10........................... 165
555 12.50%, 11/15/10........................... 643
1,184 12.50%, 12/15/10........................... 1,373
326 12.50%, 1/15/11............................ 378
2 12.50%, 2/15/11............................ 2
26 12.50%, 3/15/11............................ 30
52 12.50%, 7/15/11............................ 60
49 12.50%, 8/15/11............................ 56
42 12.50%, 10/15/11........................... 49
6 12.50%, 4/15/12............................ 7
32 12.50%, 3/15/13............................ 37
262 12.50%, 10/15/13........................... 305
46 12.50%, 10/20/13........................... 53
235 12.50%, 11/15/13........................... 273
51 12.50%, 11/20/13........................... 58
166 12.50%, 12/15/13........................... 191
59 12.50%, 12/20/13........................... 67
174 12.50%, 1/15/14............................ 202
85 12.50%, 3/15/14............................ 98
114 12.50%, 4/15/14............................ 132
30 12.50%, 4/20/14............................ 35
1 12.50%, 5/14/14............................ 1
392 12.50%, 5/15/14............................ 455
577 12.50%, 6/15/14............................ 662
100 12.50%, 6/20/14............................ 114
322 12.50%, 7/15/14............................ 374
85 12.50%, 7/20/14............................ 97
15 12.50%, 8/15/14............................ 17
39 12.50%, 8/20/14............................ 44
61 12.50%, 9/15/14............................ 71
21 12.50%, 9/20/14............................ 25
91 12.50%, 10/15/14........................... 106
60 12.50%, 10/20/14........................... 68
45 12.50%, 11/15/14........................... 52
71 12.50%, 11/20/14........................... 80
204 12.50%, 12/15/14........................... 236
539 12.50%, 1/15/15............................ 623
337 12.50%, 2/15/15............................ 391
105 12.50%, 3/15/15............................ 121
283 12.50%, 4/15/15............................ 329
112 12.50%, 5/15/15............................ 130
163 12.50%, 5/20/15............................ 185
43 12.50%, 6/15/15............................ 49
60 12.50%, 6/20/15............................ 69
21 12.50%, 7/15/15............................ 24
49 12.50%, 7/20/15............................ 55
17 12.50%, 8/15/15............................ 20
47 12.50%, 9/20/15............................ 54
93 12.50%, 10/15/15........................... 108
31 12.50%, 11/20/15........................... 35
92 12.50%, 1/20/16............................ 104
114 12.75%, 9/20/13............................ 130
110 12.75%, 11/20/13........................... 125
6 12.75%, 12/20/13........................... 7
1 12.75%, 2/20/14............................ 1
47 12.75%, 3/20/14............................ 54
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........................... 111
1 12.75%, 7/20/15............................ 2
32 13.00%, 11/15/10........................... 36
156 13.00%, 12/15/10........................... 176
125 13.00%, 1/15/11............................ 146
268 13.00%, 2/15/11............................ 315
112 13.00%, 3/15/11............................ 132
379 13.00%, 4/15/11............................ 447
6 13.00%, 5/15/11............................ 7
31 13.00%, 7/15/11............................ 37
4 13.00%, 8/15/11............................ 4
2 13.00%, 10/15/11........................... 2
122 13.00%, 1/15/12............................ 143
45 13.00%, 2/15/12............................ 52
13 13.00%, 5/15/12............................ 15
7 13.00%, 6/15/12............................ 8
11 13.00%, 7/15/12............................ 13
1 13.00%, 8/15/12............................ 1
13 13.00%, 9/15/12............................ 15
49 13.00%, 10/15/12........................... 58
102 13.00%, 11/15/12........................... 121
95 13.00%, 12/15/12........................... 112
199 13.00%, 9/15/13............................ 233
10 13.00%, 9/20/13............................ 12
219 13.00%, 10/15/13........................... 258
57 13.00%, 6/15/14............................ 67
237 13.00%, 7/15/14............................ 276
</TABLE>
81
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------- ------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
270 13.00%, 8/15/14............................ $ 310
87 13.00%, 9/15/14............................ 101
283 13.00%, 10/15/14........................... 322
87 13.00%, 10/20/14........................... 99
60 13.00%, 11/15/14........................... 70
114 13.00%, 12/15/14........................... 135
140 13.00%, 12/20/14........................... 160
44 13.00%, 1/15/15............................ 52
46 13.00%, 3/15/15............................ 54
111 13.00%, 6/15/15............................ 130
18 13.00%, 6/20/15............................ 21
8 13.00%, 8/20/15............................ 10
345 13.50%, 5/15/10............................ 410
123 13.50%, 6/15/10............................ 145
157 13.50%, 7/15/10............................ 188
31 13.50%, 8/15/10............................ 36
43 13.50%, 9/15/10............................ 52
79 13.50%, 4/15/11............................ 96
441 13.50%, 5/15/11............................ 526
13 13.50%, 8/15/11............................ 15
14 13.50%, 9/15/11............................ 16
9 13.50%, 2/15/12............................ 10
194 13.50%, 10/15/12........................... 230
274 13.50%, 11/15/12........................... 325
35 13.50%, 12/15/12........................... 41
178 13.50%, 7/15/14............................ 213
2 13.50%, 7/20/14............................ 3
505 13.50%, 8/15/14............................ 604
6 13.50%, 8/20/14............................ 7
650 13.50%, 9/15/14............................ 775
124 13.50%, 9/20/14............................ 142
217 13.50%, 10/15/14........................... 258
97 13.50%, 10/20/14........................... 110
136 13.50%, 11/15/14........................... 162
73 13.50%, 11/20/14........................... 83
38 13.50%, 12/15/14........................... 46
17 13.50%, 12/20/14........................... 20
15 13.50%, 1/15/15............................ 18
16 13.50%, 1/20/15............................ 18
36 13.50%, 2/15/15............................ 43
25 13.50%, 3/20/15............................ 28
17 13.50%, 4/15/15............................ 21
72 13.50%, 4/20/15............................ 82
61 13.50%, 5/20/15............................ 69
19 13.50%, 6/20/15............................ 21
266 14.00%, 5/15/11............................ 320
1,564 14.00%, 6/15/11............................ 1,884
275 14.00%, 7/15/11............................ 331
26 14.00%, 9/15/11............................ 31
68 14.00%, 1/15/12............................ 82
37 14.00%, 2/15/12............................ 45
2 14.00%, 3/15/12............................ 3
11 14.00%, 4/15/12............................ 13
21 14.00%, 5/15/12............................ 25
75 14.00%, 7/15/12............................ 90
24 14.00%, 8/15/12............................ 30
113 14.00%, 9/15/12............................ 136
107 14.00%, 10/15/12........................... 129
79 14.00%, 7/15/14............................ 95
90 14.00%, 8/15/14............................ 108
265 14.00%, 9/15/14............................ 320
248 14.00%, 10/15/14........................... 299
101 14.00%, 11/15/14........................... 121
121 14.00%, 12/15/14........................... 146
185 14.00%, 2/15/15............................ 223
2 14.25%, 11/15/97........................... 2
23 14.50%, 9/15/12............................ 27
64 14.50%, 10/15/12........................... 78
46 14.50%, 8/15/14............................ 56
1 14.75%, 5/15/97............................ 1
3 15.00%, 5/15/97............................ 3
132 15.00%, 6/15/11............................ 163
652 15.00%, 7/15/11............................ 810
411 15.00%, 8/15/11............................ 508
692 15.00%, 9/15/11............................ 859
131 15.00%, 10/15/11........................... 164
18 15.00%, 11/15/11........................... 22
122 15.00%, 12/15/11........................... 151
181 15.00%, 1/15/12............................ 223
499 15.00%, 2/15/12............................ 616
232 15.00%, 3/15/12............................ 288
296 15.00%, 4/15/12............................ 363
738 15.00%, 5/15/12............................ 916
559 15.00%, 6/15/12............................ 695
685 15.00%, 7/15/12............................ 848
1,267 15.00%, 8/15/12............................ 1,571
1,708 15.00%, 9/15/12............................ 2,112
138 15.00%, 10/15/12........................... 171
239 15.00%, 11/15/12........................... 296
132 15.00%, 12/15/12........................... 164
73 15.00%, 1/15/13............................ 90
24 15.00%, 2/15/13............................ 29
21 15.00%, 4/15/13............................ 25
2 15.25%, 2/15/97............................ 2
3 15.25%, 3/15/97............................ 3
2 15.75%, 3/15/97............................ 2
1 15.75%, 4/15/97............................ 1
5 15.75%, 5/15/97............................ 5
1 15.75%, 12/15/11........................... 1
70 16.00%, 10/15/11........................... 83
15 16.00%, 11/15/11........................... 18
1 16.00%, 12/15/11........................... 2
</TABLE>
Continued
82
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
U.S. Government Income Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------- ------
<S> <C> <C>
U.S. Government Agencies, continued:
Government National Mortgage Assoc., continued:
1 16.00%, 2/15/12............................ $ 1
70 16.00%, 4/15/12............................ 83
121 17.00%, 11/15/11........................... 145
--------
Total U.S. Government Agencies 154,784
--------
U.S. Treasury Notes (23.9%):
2,100 6.75%, 6/30/99............................. 2,137
13,200 7.75%, 11/30/99............................ 13,791
3,400 7.75%, 1/31/00............................. 3,557
12,400 5.88%, 2/15/04............................. 12,073
13,600 7.00%, 7/15/06............................. 14,128
5,600 6.50%, 10/15/06............................ 5,629
--------
Total U.S. Treasury Notes 51,315
--------
Total Investments, at value 210,235
--------
Repurchase Agreements (0.1%):
181 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by Federal National
Mortgage Assoc., 7.00%, 2/1/26, Market
Value--$185)............................. $ 181
--------
Total Repurchase Agreements 181
--------
Total (Cost-- $208,962)(a) $210,416
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $214,218.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securitites as follows:
Unrealized appreciation ............ $2,408
Unrealized depreciation ............ (954)
------
Net unrealized appreciation ........ $1,454
======
83
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- -------------------------------------- ------
<C> <S> <C>
Asset Backed Bonds (2.9%):
16,393 The Money Store, Inc., 5.82%, 10/15/27*.... $ 16,393
---------
Total Asset Backed Bonds 16,393
---------
Commercial Paper (1.7%):
Automotive (1.7%):
10,000 General Motors, 0.00%, 1/21/97............. 9,968
---------
Total Commercial Paper 9,968
---------
Convertible Bonds (1.8%):
Financial Services (1.8%):
400 Si Financing Trust I, 9.50%, 6/30/26....... 10,200
---------
Total Convertible Bonds 10,200
---------
Corporate Bonds (39.2%):
Banking (1.2%):
5,500 Continental Bank N.A., 11.25%, 7/1/01...... 5,858
750 Union Bank Switzerland, 7.25%, 7/15/06..... 765
---------
6,623
---------
Broadcasting (0.9%):
5,000 Time Warner Entertainment, 8.38%, 3/15/23.. 5,081
---------
Electric Utility (1.7%):
5,000 Eastern Energy Ltd., 7.25%, 12/1/16........ 4,856
4,800 Louisiana Power & Light, 7.74%, 7/1/02..... 4,896
---------
9,752
---------
Electrical And Electronic (0.7%):
4,150 Israel Electric Corp. Ltd., 8.10%, 12/15/96 4,155
---------
Financial And Insurance (0.9%):
5,000 Metlife, 7.80%, 11/1/25.................... 5,000
---------
Financial Services (17.8%):
5,000 American Reinsurance, 7.45%, 12/15/26...... 4,988
7,000 AT&T Capital Corp., 6.49%, 5/17/99......... 7,000
5,000 BBV International Finance, 6.88%, 10/27/05. 4,892
10,000 Comp Finance Cic-ue, 6.26%, 6/29/49........ 9,983
5,000 Conseco Finance Trust II, 8.70%, 11/15/26.. 5,058
5,000 CoreStates Financial, 8.00%, 12/15/26...... 5,000
10,000 Credit Foncier de France, 8.00%, 1/14/02... 10,586
5,000 First Chicago Financial Corp., 5.50%, 5,002
8/15/04.................................
3,000 Ford Credit Europe, 6.88%, 10/10/97........ 3,019
11,000 Green Tree Financial Corp., 7.20%, 4/15/19. 11,217
6,000 Nationwide Contingent Surplus Notes Trust,
9.88%, 2/15/25**........................ 6,668
14,000 North Fork Banc Corp., 8.70%, 12/15/26..... 14,012
3,171 Structured Asset Securities Co., 7.50%,
11/13/26................................ 3,188
5,000 TransAmerica Financial Co., 6.44%, 3/15/01. $ 4,956
6,000 Travelers Capital II, 7.75%, 12/1/36....... 5,819
---------
101,388
---------
Government Agency (4.4%):
10,000 Fanniemae, 6.22%, 3/13/06.................. 9,687
14,495 National Bank of Hungary, 7.95%, 11/1/03... 15,093
---------
24,780
---------
Governments(Foreign) (3.4%):
19,000 Republic of Slovenia, 7.00%, 8/6/01........ 19,189
---------
Home Furnishings (0.8%):
4,375 Green Tree Home Improvement Loan Trust,
7.85%, 7/15/09.......................... 4,508
---------
Homebuilding & Related Financial Services (1.2%):
7,208 EQCC Home Equity Loan Trust, 5.73%,
12/15/08................................ 6,986
---------
Industrial Goods & Services (4.9%):
5,000 Millennium America, Inc., 7.00%, 11/15/06.. 4,881
5,000 Pttep International Ltd., 7.63%, 10/1/06... 5,119
8,000 Sears, Roebuck Acceptance Corp, 7.13%,
9/12/01................................. 8,130
10,000 Swedbank, 7.50%, 11/1/49................... 10,022
---------
28,152
---------
Pharmaceuticals (0.7%):
4,000 Glaxo Wellcome, 6.13%, 1/25/06............. 3,800
---------
Transportation & Shipping (0.6%):
3,750 Erac USA Finance Co., 6.35%, 1/15/01....... 3,698
---------
Total Corporate Bonds 223,112
---------
Foreign (2.2%):
Foreign Governments (2.2%):
5,000 Quebec Province, 9.00%, 4/1/16............. 5,705
7,000 State of Israel, 6.38%, 12/15/05........... 6,598
---------
12,303
---------
Total Foreign 12,303
---------
Medium Term Notes (0.9%):
Industrial Goods & Services (0.9%):
5,000 Ford Motor Credit Corp., 6.65%, 5/22/00.... 5,013
---------
Total Medium Term Notes 5,013
---------
</TABLE>
Continued
84
<PAGE>
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Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------------------------------- ------
<C> <S> <C>
Preferred Stocks (0.9%):
Utility - Electrical (0.9%):
200 National Rural Utility Corp. ............. $ 5,025
---------
Total Preferred Stocks 5,025
---------
Private Placement (2.6%):
Financial Services (1.7%):
10,000 General Finance Luxembourg, 6.12%, 5/29/49. 10,034
---------
Industrial Goods & Services (0.9%):
5,000 Empressa Electric Guacolda, 7.95%, 4/30/03. 5,088
---------
Total Private Placement 15,122
---------
U.S. Government Agencies (24.5%):
Federal Home Loan Mortgage Corp.
1,065 8.25%, 8/15/19, Series 1064-D ............. 1,069
1,942 9.00%, 5/1/20, Pool# A01002................ 2,066
3,994 9.50%, 10/1/20, Pool# A00873............... 4,320
Federal National Mortgage Assoc.
2,651 9.00%, 8/1/09, Pool# 84251................. 2,781
4,673 8.25%, 7/1/17, Pool# 124439................ 4,790
5,626 9.00%, 7/25/20, Series 90-84 .............. 5,945
568 7.00%, 9/1/23, Pool# 229268................ 555
528 7.00%, 10/1/23, Pool# 229342............... 517
579 7.00%, 10/1/23, Pool# 238554............... 566
781 7.00%, 10/1/23, Pool# 240769............... 764
349 7.00%, 10/1/23, Pool# 241684............... 341
275 7.00%, 11/1/23, Pool# 244982............... 269
11,337 8.00%, 11/1/23, Pool# 190251............... 11,564
279 7.00%, 1/1/24, Pool# 249967................ 273
572 7.00%, 2/1/24, Pool# 190257................ 559
351 7.00%, 2/1/24, Pool# 268750............... 343
35 7.00%, 2/1/24, Pool# 273020................ 34
219 7.00%, 2/1/24, Pool# 274467................ 214
584 7.00%, 3/1/24, Pool# 266984................ 572
168 7.00%, 3/1/24, Pool# 271403................ 164
175 7.00%, 3/1/24, Pool# 278037................ 171
160 7.00%, 5/1/24, Pool# 249467................ 156
451 7.00%, 5/1/24, Pool# 267955................ 441
244 7.00%, 5/1/24, Pool# 269593................ 239
419 7.00%, 5/1/24, Pool# 274673................ 410
229 7.00%, 5/1/24, Pool# 276234................ 224
256 7.00%, 5/1/24, Pool# 280200................ 251
271 7.00%, 5/1/24, Pool# 280357................ 265
258 7.00%, 5/1/24, Pool# 281700................ 253
218 7.00%, 5/1/24, Pool# 281702................ 213
36 7.00%, 5/1/24, Pool# 282656................ 35
236 7.00%, 5/1/24, Pool# 282381................ 231
186 7.00%, 5/1/24, Pool# 282711................ 182
71 7.00%, 5/1/24, Pool# 282879................ 69
154 7.00%, 5/1/24, Pool# 284491................ 150
503 7.00%, 5/1/24, Pool# 284350................ 492
297 7.00%, 6/1/24, Pool# 250059................ 291
149 7.00%, 6/1/24, Pool# 281864................ 146
576 7.00%, 6/1/24, Pool# 282980................ 563
463 7.00%, 6/1/24, Pool# 285343................ 453
625 7.00%, 6/1/24, Pool# 285147................ 612
31 7.00%, 6/1/24, Pool# 285431................ 31
386 7.00%, 6/1/24, Pool# 286619................ 378
341 7.00%, 6/1/24, Pool# 286679................ 333
479 7.00%, 6/1/24, Pool# 287210................ 468
153 7.00%, 6/1/24, Pool# 289221................ 150
608 7.00%, 7/1/24, Pool# 284442................ 595
614 7.00%, 7/1/24, Pool# 283954................ 601
367 7.00%, 7/1/24, Pool# 291753................ 359
318 7.00%, 11/1/24, Pool# 303223............... 311
4,282 9.00%, 11/1/24, Pool# 280518............... 4,505
476 7.00%, 12/1/24, Pool# 299441............... 466
2,805 9.00%, 8/1/26, Pool# 352317................ 2,955
Government National Mortgage Assoc.
1,851 8.00%, 6/15/17, Pool# 213187............... 1,914
8,589 7.50%, 4/15/23, Pool# 354563............... 8,634
3,488 6.50%, 9/15/23, Pool# 358419............... 3,348
22,755 7.00%, 12/15/23, Pool# 780406.............. 22,343
5,246 7.00%, 1/20/25, Pool# 8587................. 5,367
33,789 7.50%, 8/15/25, Pool# 780213............... 33,925
Lehman FHA - Title 1 Loan Trust
9,500 6.78%, 3/25/08 ........................... 9,546
---------
Total U.S. Government Agencies 139,782
---------
U.S. Treasury Bonds (3.3%):
7,300 6.00%, 2/15/26............................. 6,644
11,900 6.75%, 8/15/26............................. 11,998
---------
Total U.S. Treasury Bonds 18,642
---------
U.S. Treasury Notes (18.4%):
9,800 6.13%, 3/31/98............................. 9,847
5,100 6.25%, 7/31/98............................. 5,134
13,400 5.63%, 11/30/98............................ 13,338
19,000 7.75%, 11/30/99............................ 19,848
4,160 7.75%, 1/31/00............................. 4,352
24,600 6.25%, 10/31/01............................ 24,611
3,375 6.25%, 2/15/03............................. 3,373
3,375 5.75%, 8/15/03............................. 3,273
2,200 7.25%, 8/15/04............................. 2,315
</TABLE>
Continued
85
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------- -------
<S> <C> <C>
U.S. Treasury Notes, continued:
18,550 6.50%, 10/15/06............................ $ 18,643
---------
Total U.S. Treasury Notes 104,734
---------
Total Investments, at value 560,294
---------
Repurchase Agreements (0.3%):
1,705 Goldman Sachs, 6.90%, 1/2/97
(Collateralized by 1,829 Federal
National Mortgage Assoc., 7.00%,
2/1/26, market value--$1,739)............ $ 1,705
---------
Total Repurchase Agreements 1,705
---------
Total (Cost-- $560,474)(a) $561,999
=========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $569,278.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
Unrealized appreciation ............... $4,135
Unrealized depreciation ............... (2,610)
=======
Net unrealized appreciation ........... $1,525
=======
* 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 December 31, 1996.
** Represents a restricted security, purchased under Rule 144A, which is
exempt from registration under the Securities Act of 1933.
See notes to financial statements.
86
<PAGE>
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- -------------------------------------------------------------------------------
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------------------------------------------------- --------
<S> <C> <C>
Municipal Bonds (95.7%):
Arizona (2.7%):
2,000 Phoenix, 6.00%, 7/1/01 ........................................................................... $ 2,132
1,680 Salt River Project, 7.40%, 1/1/03 ................................................................ 1,762
---------
3,894
---------
California (1.6%):
1,760 Los Angeles Convention & Exhibit Center, 9.00%, 12/1/05 .......................................... 2,290
---------
Colorado (1.5%):
1,000 Metro Wastewater Reclamation, Series B, 6.75%, 4/1/01 ............................................ 1,090
1,000 Platte River Power Authority, Series B, 5.50%, 6/1/02 ............................................ 1,041
---------
2,131
---------
Connecticut (1.4%):
1,770 Connecticut Clean Water Fund, 6.38%, 6/1/05 ...................................................... 1,982
---------
Delaware (0.8%):
1,000 Delaware Transportation Authority, 7.80%, 7/1/04 ................................................. 1,180
---------
Florida (3.5%):
135 Florida Board of Education Capital Outlay, 9.13%, 6/1/14 ......................................... 190
2,000 Florida Board of Education, Series G, 6.90%, 5/1/03 .............................................. 2,245
1,430 Gainesville Utility Systems, Series A, 5.75%, 10/1/09 ............................................ 1,519
1,000 Lakeland, Electric & Water Revenue Bond, 6.00%, 10/1/13 .......................................... 1,071
---------
5,025
---------
Georgia (4.0%):
1,200 Fayette County School District, G.O., 6.25%, 3/1/04 .............................................. 1,321
2,000 Georgia G.O., Series B, 7.20%, 3/1/01 ............................................................ 2,222
2,000 Georgia, Series B, 6.00%, 3/1/04 ................................................................. 2,175
---------
5,718
---------
Guam (1.1%):
1,505 Guam Government Highway Revenue, Series A, 5.90%, 5/1/02 ......................................... 1,608
---------
Idaho (1.3%):
1,560 Canyon County School District, G.O., MBIA, 8.13%, 7/30/03 ........................................ 1,884
---------
Kansas (0.8%):
1,000 Department of Transportation & Highway, 7.25%, 3/1/04 ............................................ 1,162
---------
Kentucky (1.8%):
2,500 State Turnpike Authority, 5.50%, 7/1/07 .......................................................... 2,609
---------
Maryland (9.0%):
1,750 Anne Arundel County, G.O., 6.90%, 1/15/99 ........................................................ 1,844
1,000 Baltimore County, 5.70%, 7/1/99 .................................................................. 1,037
1,000 Baltimore County, 6.70%, 7/1/16 .................................................................. 1,051
2,000 Maryland, 7.00%, 1/1/01, Callable on 1/1/98 @ 101.25.............................................. 2,088
5,250 Maryland, Series 3, 6.60%, 7/15/00 ............................................................... 5,670
1,000 University of Maryland Auxiliary Facility & Tuition, 7.00%, 10/1/99 .............................. 1,072
---------
12,762
---------
Massachusetts (3.1%):
1,000 Massachusetts Bay Transport Authority, Semi-Annual G.O., Series A, 7.00%, 3/1/08 ................. 1,160
2,000 Massachusetts State, 6.00%, 11/1/10 .............................................................. 2,155
1,000 Massachusetts Strategic Series C, 6.00%, 8/1/09 .................................................. 1,081
---------
4,396
---------
Michigan (2.8%):
1,000 Dearborn School District, 8.38%, 5/1/00, Prerefunded 5/1/00 @ 102................................. 1,139
</TABLE>
Continued
87
<PAGE>
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- -------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS December 31, 1996
Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C>
Municipal Bonds, continued:
Michigan, continued:
1,500 Michigan Strategic Fund, 7.10%, 2/1/06 ........................................................... $ 1,746
1,000 Western Michigan University, Series A, 6.50%, 7/15/01, Prerefunded 7/15/01 @ 102.................. 1,100
---------
3,985
---------
Mississippi (0.8%):
1,000 Mississippi State, 5.90%, 11/15/10 ............................................................... 1,069
---------
Missouri (3.1%):
1,000 Health & Educational Facility, 6.88%, 2/15/21 .................................................... 1,109
1,000 Missouri, G.O., Series A, 6.00%, 4/1/02 .......................................................... 1,074
2,000 Sikeston, 6.00%, 6/1/13 .......................................................................... 2,140
---------
4,323
---------
Montana (1.5%):
1,000 Department of Transportation & Highway, 5.15%, 7/1/04 ............................................ 1,025
1,010 Montana, G.O., Series A, 6.00%, 8/1/02 ........................................................... 1,092
---------
2,117
---------
Nevada (2.4%):
2,000 Clark County Sanitation District, Series A, 6.75%, 7/1/02, Prerefunded 7/1/02 @ 101............... 2,222
1,100 Las Vegas Valley, G.O., 7.00%, 8/1/00, Callable 8/1/00 @ 102, Prerefunded 8/1/00 @ 102............ 1,214
---------
3,436
---------
New Hampshire (2.2%):
3,000 Turnpike System, 8.38%, 11/1/97, Prerefunded 11/1/97 @ 102........................................ 3,173
---------
New Mexico (1.6%):
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05 ......................................................... 1,096
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07 ......................................................... 1,096
---------
2,192
---------
New York (6.1%):
1,050 Dormitory Authority, Series A, 5.75%, 7/1/10 ..................................................... 1,113
2,000 New York, G.O., 8.00%, 4/1/03 .................................................................... 2,350
2,500 North Hempstead, G.O., Series B, 6.00%, 4/1/05 ................................................... 2,712
2,200 Westchester County, 6.70%, 11/1/05 ............................................................... 2,533
---------
8,708
---------
North Carolina (4.9%):
5,000 North Carolina Eastern Municipal Power, Series A, 6.50%, 1/1/18 .................................. 5,700
1,200 Winston Salem, G.O., 6.50%, 6/1/99 ............................................................... 1,266
---------
6,966
---------
Ohio (3.3%):
1,230 Cleveland School District, 8.00%, 12/1/01, Callable 12/1/97 @ 100................................. 1,421
1,000 Franklin County, G.O., 6.80%, 12/1/00, Prerefunded 12/1/00 @ 102.................................. 1,107
2,025 Hamilton City Electric, Series B, 8.00%, 10/15/98 ................................................ 2,200
---------
4,728
---------
Oklahoma (3.6%):
1,750 Grand River Dam Authority, FSA, 5.75%, 6/1/08 .................................................... 1,864
1,000 Grand River Dam Authority, Series B, 6.25%, 6/1/11 ............................................... 1,105
1,975 Oklahoma Municipal Power Authority, MBIA, 5.88%, 1/1/15 .......................................... 2,121
---------
5,090
---------
Oregon (2.9%):
1,000 Deschutes & Jefferson School District, G.O., 6.00%, 6/1/03 ....................................... 1,079
1,435 Lane County School District, G.O., 6.00%, 1/1/04 ................................................. 1,561
</TABLE>
Continued
88
<PAGE>
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- -------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE PARKSTONE GROUP OF FUNDS DECEMBER 31,1996
Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
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 ................................................. $ 1,450
--------
4,090
--------
Puerto Rico (10.3%):
1,000 Puerto Rico - Series Y, 6.25%, 7/1/12 ............................................................ 1,105
1,000 Puerto Rico - Series Z, 6.25%, 7/1/15 ............................................................ 1,105
1,000 Puerto Rico Commonwealth, G.O., 6.25%, 7/1/09 .................................................... 1,113
5,000 Puerto Rico Electric Power Authority, 6.50%, 7/1/06 .............................................. 5,650
1,000 Puerto Rico Electric Power Authority, 7.00%, 7/1/07 .............................................. 1,174
2,000 Puerto Rico Electric Power Authority, MBIA, Series W, 6.50%, 7/1/05 .............................. 2,253
1,000 Puerto Rico, MBIA, 6.50%, 7/1/04 ................................................................. 1,121
1,000 University of Puerto Rico, 6.25%, 6/1/07 ......................................................... 1,111
--------
14,632
--------
South Carolina (1.7%):
1,250 Charleston County, MBIA, 6.25%, 1/1/07 ........................................................... 1,375
1,000 Piedmont Municipal Power Agency, 6.25%, 1/1/09 ................................................... 1,098
--------
2,473
--------
South Dakota (0.8%):
1,000 Heartland Consumer Power District, 6.80%, 1/1/02 ................................................. 1,098
--------
Tennessee (4.4%):
1,500 Memphis Electrical Systems, 6.00%, 1/1/06 ........................................................ 1,628
1,000 Metropolitan Government Nashville & Davidson, Series B, 5.50%, 5/15/02 ........................... 1,044
2,000 Tennessee State, G.O., 6.00%, 5/1/05 ............................................................. 2,185
1,250 Tennessee State, G.O., Series A, 6.10%, 6/1/00 .................................................. 1,325
--------
6,182
--------
Texas (4.6%):
1,000 Dallas, 6.13%, 2/15/07 ........................................................................... 1,075
5,000 Texas, 6.00%, 10/1/08 ............................................................................ 5,413
--------
6,488
--------
Vermont (1.6%):
2,000 Burlington Electric, MBIA, 6.25%, 7/1/11 ......................................................... 2,200
--------
Virgin Islands (0.9%):
1,000 Virgin Islands Public Finance Authority, 7.30%, 10/1/18 .......................................... 1,213
--------
Virginia (0.8%):
1,000 Richmond Utility, 8.00%, 1/15/18, Prerefunded 1/15/98 @ 102....................................... 1,062
--------
Washington (2.1%):
1,000 King County, 6.10%, 12/1/01 ...................................................................... 1,007
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.......... 786
--------
2,904
--------
Wisconsin (0.7%):
1,000 Milwaukee Metropolitan Sewer District, G.O., 6.60%, 10/1/99 ...................................... 1,058
--------
Total Municipal Bonds 135,837
--------
Alternative Minimum Tax Paper (1.4%):
Delaware (1.4%):
2,000 Delaware State Economic Development Authority, 5.05%, 10/1/29* ................................... 2,000
--------
Total Alternative Minimum Tax Paper 2,000
--------
</TABLE>
Continued
89
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- ------------------------------------------------------------------------------
The Parkstone Group of Funds DECEMBER 31, 1996
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Tax Free Commercial Paper (1.0%):
Colorado (1.0%):
1,400 Colorado Water Resources & Power, 6.00%, 9/1/11 .................................................. $ 1,498
---------
Total Tax Free Commercial Paper 1,498
---------
Total (Cost--$135,423) (a) $ 139,326
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $141,979.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ............................................... $3,998
Unrealized depreciation ............................................... (95)
------
Net unrealized appreciation .......................................... $3,903
======
</TABLE>
* 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 December 31, 1996.
FSA--Insured by Financial Security Assurance GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
See notes to financial statements.
90
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Michigan Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ----------------------------------------------------------------------------------------------------- -------
<S> <C> <C>
Municipal Bonds (95.7%):
Michigan (85.3%):
1,850 Avondale School District, 5.80%, 5/1/07, Callable 5/1/02 @ 102.......................................... $ 1,928
1,380 Byron Center, Public Schools, 8.25%, 5/1/08, G.O., MBIA................................................. 1,759
1,380 Byron Center, Public Schools, 8.25%, 5/1/09, G.O., MBIA................................................. 1,762
1,500 Chippewa Valley School District, 8.10%, 5/1/99, G.O..................................................... 1,625
2,375 Chippewa Valley School District, 7.80%, 5/1/01, G.O..................................................... 2,683
1,000 Chippewa Valley School District, 7.00%, 5/1/11, Prerefunded 5/1/02 @ 102............................... 1,113
1,830 Dearborn Michigan, 5.13%, 4/1/14 ....................................................................... 1,752
1,100 Dearborn School District, 8.38%, 5/1/00, Prerefunded 5/1/00 @ 102....................................... 1,252
1,050 Dearborn, School District, 5.25%, 5/1/07, G.O., Callable 5/1/03 @ 101.5................................. 1,067
1,275 Detroit Sewer, 6.20%, 7/1/02, Callable 7/1/01 @ 102..................................................... 1,388
2,000 Detroit Water, 7.88%, 7/1/98, Prerefunded 7/1/98 @ 102.................................................. 2,152
1,000 Detroit, Water, 6.50%, 7/1/15, FGIC.................................................................... 1,121
2,000 Detroit, Water Supply System, 5.40%, 7/1/10 ........................................................... 2,025
2,000 Detroit, Revenue Bonds, 5.25%, 5/1/08, G.O., AMBAC...................................................... 2,000
1,000 Detroit, Sewage Disposal Revenue, 6.00%, 7/1/10 ........................................................ 1,077
1,000 Detroit, Sewage Disposal Revenue, Series B, 6.00%, 7/1/09 .............................................. 1,078
2,250 Detroit, Water Supply Systems, Series B, 5.55%, 7/1/12, MBIA............................................ 2,297
1,125 Goodrich, Area School District, 7.65%, 5/1/11, G.O., MBIA, Callable 5/1/05 @ 102........................ 1,341
1,000 Grand Haven, Electric, 5.20%, 7/1/06, MBIA.............................................................. 1,020
1,235 Grand Haven, Public Schools, 7.00%, 5/1/07, G.O., Callable 5/1/03 @ 102................................. 1,443
1,655 Grand Ledge Michigan Public School District, 5.25%, 5/1/09 ............................................. 1,673
1,250 Grand Ledge, Public School District, 5.45%, 5/1/11, G.O., MBIA.......................................... 1,260
1,200 Grand Rapids, 6.50%, 5/1/00, G.O........................................................................ 1,281
1,925 Grand Rapids School District, 5.00%, 5/1/06, G.O., Callable 5/1/01 @ 102................................ 1,918
1,000 Hartland School District, 5.35%, 5/1/03, G.O............................................................ 1,048
1,570 Holland Electric, 6.25%, 7/1/01 ........................................................................ 1,674
1,750 Holland Electric, 6.50%, 7/1/04, Prerefunded 7/1/99 @ 100............................................... 1,844
1,875 Holland Electric, 6.50%, 7/1/05, Prerefunded 7/1/99 @ 100............................................... 1,976
600 Holt School District, 8.75%, 5/1/00, G.O................................................................ 679
600 Holt School District, 8.75%, 5/1/01, G.O................................................................ 700
2,500 Huron Valley School District, 7.10%, 5/1/08, G.O., Callable 5/1/01 @ 102................................ 2,793
1,650 Kalamazoo, 6.20%, 10/1/06, G.O., Callable 10/1/02 @ 101.5............................................... 1,772
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable 7/1/99 @ 100...................................... 2,080
1,015 Kalamazoo Hospital Authority, Bronson Hospital, 5.63%, 5/15/01 ......................................... 1,057
1,000 Kalamazoo Hospital Finance Authority, 5.63%, 7/1/00 .................................................... 1,039
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, 6.13%, 7/1/07, FGIC....................... 2,123
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, Series A, 6.00%, 6/1/03 .................. 2,133
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital, 5.88%, 5/15/03 ................................. 1,526
1,500 Kalamazoo, Michigan Hospital Authority, Series A, 6.25%, 6/1/14, FGIC................................... 1,628
1,000 Kalamazoo, Michigan Public Library, 5.20%, 5/1/11 ...................................................... 983
1,300 Kenowa Hills Michigan, 5.50%, 5/1/04, G.O............................................................... 1,365
1,120 Kent County, 8.00%, 12/1/98 ............................................................................ 1,204
1,000 Kent County Hospital Authority, Butterworth Hospital, 7.25%, 1/15/12, Prerefunded 1/15/00 @ 102......... 1,100
5,000 Kent County Hospital Authority, Butterworth Hospital, Series A, 7.25%, 1/15/13 ......................... 5,950
500 Kentwood Public Schools, 7.15%, 5/1/01, G.O............................................................. 541
1,000 Kentwood School District, 5.90%, 5/1/04, G.O., Prerefunded 5/1/02 @ 102................................. 1,068
1,000 Kentwood School District, 7.15%, 5/1/07, G.O., Prerefunded 5/1/99 @ 102................................. 1,083
2,000 Lake Orion, County School District, 7.00%, 5/1/05, G.O., Callable 5/1/5 @ 101........................... 2,313
2,025 Lanse Creuse Public Schools, 6.00%, 5/1/98 ............................................................. 2,078
1,000 Lansing Building Authority, 6.00%, 6/1/04 .............................................................. 1,065
</TABLE>
Continued
91
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Michigan Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ---------------------------------------------------------------------------------------------------------- -------
<S> <C> <C>
Municipal Bonds, continued:
Michigan, continued:
1,335 Lansing Michigan, G.O., 6.00%, 1/1/07 .................................................................... 1,445
2,000 Lansing School District, 6.88%, 5/1/09, G.O., Callable 5/1/05 @ 100....................................... 2,218
1,260 Lansing Sewage Disposal, 6.85%, 5/1/97 ................................................................... 1,273
1,000 Lansing, Michigan Light, 6.00%, 10/1/02, G.O.............................................................. 1,070
1,000 Livonia School District, 6.35%, 5/1/04, G.O., Callable 5/01/02 @ 102...................................... 1,088
1,000 Local Government Loan Program, 6.20%, 5/1/04 ............................................................. 1,094
1,000 Michigan, 5.30%, 11/1/98, G.O............................................................................. 1,024
1,000 Michigan Building Authority, 6.25%, 10/1/00 .............................................................. 1,063
1,600 Michigan Comprehensive Transportation, Series B, 5.40%, 5/15/01 .......................................... 1,666
1,000 Michigan Housing Development Authority, Series A, 6.45%, 6/1/04, Callable 6/1/02 @ 102.................... 1,059
2,000 Michigan Municipal Bond Authority, 6.25%, 5/15/00 ........................................................ 2,120
1,500 Michigan Municipal Bond Authority, 7.75%, 5/1/05, Prerefunded 5/1/98 @ 102................................ 1,601
1,000 Michigan Municipal Bond Authority, Detroit Schools State Aid, 6.70%, 11/1/99 ............................. 1,064
1,000 Michigan Municipal Bond Authority, Local Government Program, 6.90%, 5/1/99 ............................... 1,056
2,000 Michigan Municipal Bond Authority, Transportation Fund, 7.70%, 8/1/97 .................................... 2,048
1,000 Michigan State, 5.00%, 12/1/03, G.O....................................................................... 1,023
1,850 Michigan State Building Authority, Detroit Regional Prisons, 7.10%, 10/1/98 .............................. 1,945
1,020 Michigan State Building Authority, Michigan University Adult General Hospital, 7.00%, 12/1/02 ............ 1,148
1,000 Michigan State Building Authority, Series II, 6.40%, 10/1/04, Callable 10/1/01 @ 102...................... 1,083
2,300 Michigan State Comprehensive Transportation, 6.70%, 9/1/98 ............................................... 2,401
3,000 Michigan State Environmental Protection Program, 5.50%, 11/1/05, G.O...................................... 3,146
2,825 Michigan State Environmental Protection Program, 6.25%, 11/1/07, G.O...................................... 3,097
3,250 Michigan State Environmental Protection Program, 6.25%, 11/1/12, G.O...................................... 3,583
500 Michigan State Hospital Authority, Henry Ford, 6.00%, 9/1/11 ............................................. 534
2,000 Michigan State Hospital Authority, Henry Ford, 6.00%, 9/1/12, AMBAC....................................... 2,123
1,135 Michigan State Hospital Finance Authority, Harper Grace Hospital, 7.12%, 5/1/09 .......................... 1,256
1,200 Michigan State Hospital Finance Authority, Oakwood Hospital, Series A, 5.00%, 11/1/03 .................... 1,221
5,000 Michigan State Hospital Finance Authority, Sisters of Mercy, 5.38%, 8/15/14, MBIA......................... 4,950
1,000 Michigan State Housing Development, 6.63%, 10/15/06, Callable 10/15/02 @ 103.............................. 1,076
2,000 Michigan State Recreation Program, 5.75%, 11/1/01, G.O.................................................... 2,115
2,000 Michigan State South Central Power Agency, 5.80%, 11/1/05 ................................................ 2,133
500 Michigan State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @ 102...................................... 541
1,000 Michigan State Trunk Line, 7.00%, 8/15/17, Callable 8/15/99 @ 102......................................... 1,088
1,000 Michigan State Trunk Line, Series B-2, 5.40%, 10/1/01 .................................................... 1,035
1,000 Michigan State University, Series A, 5.70%, 8/15/03, Callable 8/15/02 @ 101............................... 1,058
3,000 Michigan Strategic Fund, (Detroit Edison), 7.00%, 7/15/08 ................................................ 3,461
2,000 Michigan Strategic Fund, (Detroit Edison), 6.95%, 5/1/11 ................................................. 2,315
4,400 Michigan Strategic Fund, (Ford), 7.10%, 2/1/06 ........................................................... 5,121
2,075 Mona Shores School District, 6.75%, 5/1/09, G.O., FGIC, Callable 5/1/05 @ 102............................. 2,386
1,000 Paw Paw Public School District, 6.50%, 5/1/09, G.O., FGIC................................................. 1,123
1,000 Plymouth School District, 6.50%, 5/1/05, Callable 5/1/01 @ 101*........................................... 1,080
1,300 Plymouth-Canton, 6.55%, 5/1/08, Callable 5/1/01 @ 101..................................................... 1,414
2,000 Plymouth-Canton Michigan Community School, 5.40%, 5/1/07, FSA............................................. 2,045
1,000 Rochester Community School District, 5.25%, 5/1/04 ....................................................... 1,036
1,000 Rochester Michigan School District, 6.50%, 5/1/08, Callable 5/1/02 @ 100.................................. 1,089
2,000 Rochester School District, 6.30%, 5/1/04, Callable 5/1/02 @ 100........................................... 2,158
1,000 Rochester School District, 6.50%, 5/1/07 ................................................................. 1,089
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02 @ 102............................................ 1,178
1,000 Royal Oak Hospital Authority, 7.25%, 1/1/09, Callable 1/1/99 @ 102*....................................... 1,078
1,145 Royal Oak Hospital Authority, William Beaumont, 7.00%, 1/1/98 ............................................ 1,177
</TABLE>
Continued
92
<PAGE>
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- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, Continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Michigan Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------------------------------------------------------------- -------
Municipal Bonds, continued:
Michigan, continued:
<S> <C> <C>
4,500 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, 7.38%, 1/1/20, Prerefunded 1/1/99 @ 102.. $ 4,860
2,120 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, Series G, 6.00%, 11/15/02 ............... 2,268
2,000 South Redford Michigan School District, 5.25%, 5/1/16 ....................................................... 1,915
1,340 State of Michigan Building Authority, Series I, 6.00%, 10/1/02 .............................................. 1,437
1,000 Traverse City Public Schools, 7.00%, 5/1/05, Prerefunded 5/1/01 @ 101.5...................................... 1,110
400 Traverse City School District, 9.00%, 5/1/99 ................................................................ 443
1,000 Troy School District, 7.75%, 5/1/01, Callable 5/1/00 @ 102, Prerefunded 5/1/00 @ 102......................... 1,123
500 University of Michigan, 6.00%, 4/1/05 ....................................................................... 542
2,000 University of Michigan Hospital Revenue Bonds, 7.00%, 12/1/21, Callable 12/1/00 @ 102*....................... 2,223
200 University of Michigan Hospitals Series A, 5.10%, 12/1/27** ................................................. 200
1,000 University of Michigan Student Fees, 5.00%, 4/1/02 .......................................................... 1,026
1,315 University of Michigan Student Fees - Series A, 6.00%, 4/1/06 ............................................... 1,427
2,000 University of Michigan Student Fees, Series B, 5.60%, 4/1/08, Callable 4/1/03 @ 102.......................... 2,078
1,200 University of Michigan, Series A, 5.10%, 12/1/19** .......................................................... 1,200
1,975 Utica School District, 5.60%, 5/1/05 ........................................................................ 2,076
1,680 Western Michigan School District., 5.90%, 5/1/10, MBIA....................................................... 1,783
1,475 Western Michigan University, Series A, 5.30%, 7/15/07, Callable 7/15/03 @ 102................................ 1,499
1,500 Western Michigan University, Series A, 5.40%, 7/15/08, Callable 7/15/03 @ 105................................ 1,524
1,000 Western Township Utilities Authority, 6.00%, 1/1/00 ......................................................... 1,046
1,000 Wyandotte City School District, 6.90%, 5/1/16, G.O., Prerefunded 5/1/1 @ 102................................. 1,110
3,000 Wyandotte Electric Revenue, 6.25%, 10/1/08, MBIA............................................................. 3,311
--------
200,233
--------
Puerto Rico (8.8%):
1,425 Puerto Rico Commonwealth Highway & Transportation, 6.25%, 7/1/14 ............................................ 1,576
3,000 Puerto Rico Commonwealth, 6.25%, 7/1/09, G.O................................................................. 3,338
2,000 Puerto Rico Commonwealth, 6.25%, 7/1/10, G.O................................................................. 2,208
500 Puerto Rico Commonwealth, 6.25%, 7/1/12, G.O................................................................. 551
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority, 6.00%, 7/1/07, MBIA..................................... 1,090
1,800 Puerto Rico Commonwealth Highway, Series W, 5.50%, 7/1/13, FSA............................................... 1,838
1,250 Puerto Rico Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA.......................................... 1,408
1,000 Puerto Rico Electric Power Authority, Series Y, 6.50%, 7/1/06, MBIA.......................................... 1,130
4,000 Puerto Rico Public Buildings Authority, 5.50%, 7/1/07, FSA................................................... 4,150
1,000 Puerto Rico Public Buildings Authority, Series A, 6.25%, 7/1/15, AMBAC....................................... 1,104
1,000 Puerto Rico, Series Z, 6.25%, 7/1/15 ........................................................................ 1,105
1,000 University of Puerto Rico., 6.25%, 6/1/07 ................................................................... 1,111
--------
20,609
--------
Virgin Islands (1.6%):
3,100 Virgin Islands Public Finance Authority, 7.30%, 10/1/18 ..................................................... 3,759
--------
Total Municipal Bonds 224,601
--------
Alternative Minimum Tax Paper (0.1%):
Michigan (0.1%):
285 Wayne County Michigan Airport Revenue, 7.25%, 12/1/10 ....................................................... 310
--------
Total Alternative Minimum Tax Paper 310
--------
Tax Free Commercial Paper (2.6%):
Michigan (2.6%):
3,475 Michigan State Building Authority, 6.25%, 10/1/03 ........................................................... 3,792
1,005 Michigan State Trunk Line, 6.25%, 11/1/03 ................................................................... 1,103
</TABLE>
Continued
93
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
Michigan Municipal Bond Fund (UNAUDITED)
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- -------- ----------------------------------------------------------------------------------------------------- -------
<S> <C> <C>
Tax Free Commercial Paper, continued:
Michigan, continued:
1,150 University of Michigan, 5.13%, 11/15/15 ........................................................... $ 1,088
--------
5,983
--------
Total Tax Free Commercial Paper 5,983
--------
Investment Companies (0.0%):
60 Federated Michigan Tax Free Money Market........................................................... 60
--------
Total Investment Companies 60
--------
Total (Cost--$221,577) (a) $230,954
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $234,619.
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ................................ $ 9,585
Unrealized depreciation ................................ (208)
=======
Net unrealized appreciation ............................ $ 9,377
=======
</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.
** 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 December 31, 1996.
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 Assoc.
See notes to financial statements.
94
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
1. Organization:
The Parkstone Group of Funds (the "Group") was organized on July 9, 1987,
and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as an open-end investment company established as a
Massachusetts business trust.
The Group is authorized to issue an unlimited number of shares without par
value. The Group presently offers shares of the Prime Obligations Fund,
the U.S. Government Obligations Fund, the Treasury Fund, the Tax-Free
Fund, the Equity Income Fund (formerly the High Income Equity Fund), the
Large Capitalization Fund, the Mid Capitalization Fund (formerly the
Equity Fund), the Small Capitalization Fund, the International Discovery
Fund, the Balanced Allocation Fund (formerly 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, 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 principle. 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 Equity Income 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 Mid Capitalization 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 the long-term growth of capital. The
investment objectives of the Balanced Allocation 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 objective of the Municipal Bond Fund is 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 Equity Income Fund, the Large Capitalization Fund, the Mid
Capitalization Fund, the Small Capitalization Fund, the International
Discovery Fund, the Balanced Allocation 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
95
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
(collectively, "the variable net asset value funds"): Investor A, Investor
B, Investor C and Institutional. The Investor A shares of the variable net
asset value funds are subject to initial sales charges imposed at the time
of purchase, in accordance with the Funds' prospectuses. Certain
redemptions of Investor B shares made within four years of purchase and
Investor C shares made within one year of purchase are subject to
contingent deferred sales charges in accordance with the Funds'
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the
Investor A, Investor B and Investor C shares, voting rights on matters
affecting a single class of shares and the exchange privileges of each
class of shares.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by
the Group in the preparation of its financial statements. The policies are
in conformity with generally accepted accounting principles. The
preparation of financial statements requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of income
and expenses for the period. Actual results could differ from those
estimates.
Securities Valuation:
Investments of the money market funds are valued at either amortized
cost, which approximates market value, or at original cost, which
combined with accrued interest approximates market value. Under the
amortized cost method, discount or premium is amortized on a constant
basis to the maturity of the security. In addition, the money market
funds may not (a) purchase any instrument with a remaining maturity
greater than thirteen months unless such instrument is subject to a
demand feature, or (b) maintain a dollar-weighted-average portfolio
maturity which exceeds 90 days.
Investments in common and preferred stocks, corporate bonds, commercial
paper, municipal and foreign government bonds and U.S. Government
securities of the variable net asset value funds are valued at their
market values determined on the basis of the mean between the latest
available bid and asked prices in the principal market (closing sales
prices if the principal market is an exchange) in which such securities
are normally traded. Investments in foreign securities in the Small
Capitalization Fund, the Balanced Allocation 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 Small Capitalization Fund, the International Discovery Fund and
Balanced Allocation 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.
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,
Continued
96
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
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 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 in its obligation to a Fund, such Fund bears the risk
of delay in the recovery of its portfolio securities and the risk of
loss of rights in the collateral.
Continued
97
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
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 Equity Income Fund, the Large
Capitalization Fund, the Mid Capitalization Fund, and the Small
Capitalization Fund may use index options also. Options on indices are
similar to options on a 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 variable net asset value funds. Distributable
net realized capital gains, if any, are declared and distributed
annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These differences
are primarily due to differing treatments for mortgage-backed
securities, foreign currency transactions, expiring capital loss carry
forwards and deferrals of certain losses. Accordingly, timing
differenced relating to shareholder 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.
Continued
98
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for
the six months ended December 31, 1996 were as follows (amounts in
thousands):
<TABLE>
<CAPTION>
Purchases Sales
------------ -------------
<S> <C> <C>
Equity Income Fund................................. $ 65,169 $ 96,465
Large Capitalization Fund.......................... 134,927 50,811
Mid Capitalization Fund............................ 144,614 277,231
Small Capitalization Fund.......................... 176,589 209,857
International Discovery Fund....................... 98,885 100,593
Balanced Allocation Fund........................... 415,212 410,109
Limited Maturity Bond Fund......................... 452,697 462,902
Intermediate Government Obligations Fund........... 1,711,794 1,715,425
U.S. Government Income Fund........................ 581,701 570,873
Bond Fund.......................................... 3,603,747 3,474,778
Municipal Bond Fund................................ 11,371 10,752
Michigan Municipal Bond Fund....................... 23,816 9,704
</TABLE>
Continued
99
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
4. Capital Share Transactions:
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government
Obligations Fund Obligations Fund Treasury Fund
------------------------- --------------------- ------------------------
Amount Shares Amount Shares Amount Shares
---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ........................... $ 353,413 353,413 $ 421,774 421,774 $ 473,363 473,363
Dividends reinvested .................... 3,819 3,819 791 791 285 285
Shares redeemed ......................... (325,403) (325,403) (429,542) (429,542) (503,494) (503,494)
------------ ----------- ----------- --------- ------------ -----------
Net increase (decrease) ................. $ 31,829 31,829 $ (6,977) (6,977) $ (29,846) (29,846)
============ =========== =========== ========= ============ ===========
Institutional Shares:
Shares issued ........................... $ 596,742 596,742 $ 187,592 187,592 $ 382,271 382,271
Dividends reinvested .................... 9 9 -- -- -- --
Shares redeemed ......................... (496,746) (496,746) (183,526) (183,526) (305,284) (305,284)
------------ ----------- ----------- --------- ------------ -----------
Net increase ............................ $ 100,005 100,005 $ 4,066 4,066 $ 76,987 76,987
============ =========== =========== ========= ============ ===========
For the year ended June 30, 1996:
Investor A Shares:
Shares issued ........................... $ 478,221 478,221 $ 637,510 637,510 $ 1,354,172 1,354,172
Dividends reinvested .................... 6,867 6,867 1,435 1,435 492 492
Shares redeemed ......................... (446,172) (446,172) (621,181) (621,181) (1,301,320) (1,301,320)
------------ ----------- ----------- --------- ------------ -----------
Net increase (decrease) ................. $ 38,916 38,916 $ 17,764 17,764 $ 53,344 53,344
============ =========== =========== ========= ============ ===========
Institutional Shares:
Shares issued ........................... $ 993,374 993,374 $ 454,210 454,210 $ 648,403 648,403
Dividends reinvested .................... 28 28 64 64 1 1
Shares redeemed ......................... (1,037,700) (1,037,700) (474,388) (474,388) (617,201) (617,201)
------------ ----------- ----------- --------- ------------ -----------
Net increase (decrease) ................. $ (44,298) (44,298) $ (20,114) (20,114) $ 31,203 31,203
============ =========== =========== ========= ============ ===========
<CAPTION>
Tax-Free Fund
----------------------
Amount Shares
---------- ----------
<S> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ........................... $ 129,188 129,188
Dividends reinvested .................... 366 366
Shares redeemed ......................... (108,052) (108,052)
----------- ---------
Net increase (decrease) ................. $ 21,502 21,502
=========== =========
Institutional Shares:
Shares issued ........................... $ 61,161 61,161
Dividends reinvested .................... -- --
Shares redeemed ......................... (57,391) (57,391)
----------- ---------
Net increase ............................ $ 3,770 3,770
=========== =========
For the year ended June 30, 1996:
Investor A Shares:
Shares issued ........................... $ 241,570 241,570
Dividends reinvested .................... 820 820
Shares redeemed ......................... (245,782) (245,782)
----------- ---------
Net increase (decrease) ................. $ (3,392) (3,392)
=========== =========
Institutional Shares:
Shares issued ........................... $ 134,776 134,776
Dividends reinvested .................... -- --
Shares redeemed ......................... (127,125) (127,125)
----------- ---------
Net increase (decrease) ................. $ 7,651 7,651
=========== =========
</TABLE>
Continued
100
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
Capital Share Transactions, continued
(Amounts in Thousands)
<TABLE>
<CAPTION>
Large Mid
Equity Income Capitalization Capitalization
Fund Fund (a) Fund
------------------- ------------------ --------------------
Amount Shares Amount Shares Amount Shares
---------- ------- -------- ------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ................................. $ 9,188 523 $ 2,456 211 $ 59,520 2,938
Dividends reinvested .......................... 8,635 506 19 2 22,249 1,428
Shares redeemed ............................... (5,469) (312) (1,128) (96) (44,837) (2,237)
----------- ------- --------- -------- ----------- --------
Net increase (decrease) ....................... $ 12,354 717 $ 1,347 117 $ 36,932 2,129
=========== ======= ========= ======== =========== ========
Investor B Shares:
Shares issued ................................. $ 2,851 163 $ 1,093 92 $ 4,310 222
Dividends reinvested .......................... 1,439 85 11 1 5,491 365
Shares redeemed ............................... (657) (38) (214) (18) (767) (38)
----------- ------- --------- -------- ----------- --------
Net increase .................................. $ 3,633 210 $ 890 75 $ 9,034 549
=========== ======= ========= ======== =========== ========
Investor C Shares:
Shares issued ................................. $ 141 8 $ 20 2 $ 591 30
Dividends reinvested .......................... 26 2 -- -- 458 30
Shares redeemed ............................... (17) (1) -- -- (102) (5)
----------- ------- --------- -------- ----------- --------
Net increase .................................. $ 150 9 $ 20 2 $ 947 55
=========== ======= ========= ======== =========== ========
Institutional Shares:
Shares issued ................................. $ 38,752 2,345 $ 94,590 8,133 $ 59,584 3,071
Dividends reinvested .......................... 7,350 431 2,351 192 112,225 7,139
Shares redeemed ............................... (47,805) (2,728) (21,270) (1,809) (134,593) (6,441)
=========== ======= ========= ======== =========== ========
Net increase (decrease) ....................... $ (1,703) 48 $ 75,671 6,516 $ 37,216 3,769
=========== ======= ========= ======== =========== ========
For the year ended June 30, 1996:
Investor A Shares:
Shares issued ................................. $ 10,168 632 $ 1,890 176 $ 43,954 2,330
Dividends reinvested .......................... 3,421 213 1 -- 1,731 95
Shares redeemed ............................... (15,766) (989) (314) (29) (35,147) (1,871)
----------- ------- --------- -------- ----------- --------
Net increase (decrease) ....................... $ (2,177) (144) $ 1,577 147 $ 10,538 554
=========== ======= ========= ======== =========== ========
Investor B Shares:
Shares issued ................................. $ 4,807 295 $ 807 75 $ 8,140 434
Dividends reinvested .......................... 342 21 -- -- 329 18
Shares redeemed ............................... (1,279) (80) (12) (1) (799) (42)
----------- ------- --------- -------- ----------- --------
Net increase .................................. $ 3,870 236 $ 795 74 $ 7,670 410
=========== ======= ========= ======== =========== ========
Investor C Shares:
Shares issued ................................. $ 125 7 $ 2 -- $ 940 49
Dividends reinvested .......................... 3 -- -- -- 14 1
Shares redeemed ............................... (4) -- -- -- (118) (6)
----------- ------- --------- -------- ----------- --------
Net increase .................................. $ 124 7 $ 2 -- $ 836 44
=========== ======= ========= ======== =========== ========
Institutional Shares:
Shares issued ................................. $ 35,336 2,196 $268,046 24,775 $ 142,068 7,574
Dividends reinvested .......................... 3,586 224 228 21 18,788 1,026
Shares redeemed ............................... (108,373) (6,811) (4,553) (418) (365,658) (18,489)
----------- ------- --------- -------- ----------- --------
Net increase (decrease) ....................... $ (69,451) (4,391) $263,721 24,378 $ (204,802) (9,889)
=========== ======= ========= ======== =========== ========
<CAPTION>
Small
Capitalization
Fund
--------------------
Amount Shares
---------- -------
<S> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ................................. $ 491,028 15,399
Dividends reinvested .......................... 23,998 841
Shares redeemed ............................... (517,325) (16,012)
----------- --------
Net increase (decrease) ....................... $ (2,299) 228
=========== ========
Investor B Shares:
Shares issued ................................. $ 10,497 332
Dividends reinvested .......................... 5,725 204
Shares redeemed ............................... (1,380) (43)
----------- --------
Net increase .................................. $ 14,842 493
=========== ========
Investor C Shares:
Shares issued ................................. $ 4,671 149
Dividends reinvested .......................... 1,584 56
Shares redeemed ............................... (170) (5)
----------- --------
Net increase .................................. $ 6,085 200
=========== ========
Institutional Shares:
Shares issued ................................. $ 98,307 3,058
Dividends reinvested .......................... 54,059 1,871
Shares redeemed ............................... (96,394) (2,944)
----------- --------
Net increase (decrease) ....................... $ 55,972 1,985
=========== ========
For the year ended June 30, 1996:
Investor A Shares:
Shares issued ................................. $ 716,574 24,410
Dividends reinvested .......................... 11,443 425
Shares redeemed ............................... (654,377) (22,140)
----------- --------
Net increase (decrease) ....................... $ 73,640 2,695
=========== ========
Investor B Shares:
Shares issued ................................. $ 14,435 493
Dividends reinvested .......................... 1,919 72
Shares redeemed ............................... (1,598) (55)
----------- --------
Net increase .................................. $ 14,756 510
=========== ========
Investor C Shares:
Shares issued ................................. $ 4,777 164
Dividends reinvested .......................... 67 3
Shares redeemed ............................... (181) (6)
----------- --------
Net increase .................................. $ 4,663 161
=========== ========
Institutional Shares:
Shares issued ................................. $ 178,465 6,099
Dividends reinvested .......................... 33,689 1,238
Shares redeemed ............................... (175,262) (5,614)
----------- --------
Net increase (decrease) ....................... $ 36,892 1,723
=========== ========
</TABLE>
(a) For the period from December 28, 1995 (commencement of operations) through
June 30, 1996.
101
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
Capital Share Transactions, continued
(Amounts in Thousands)
<TABLE>
<CAPTION>
International Balanced Limited Maturity
Discovery Fund Allocation Fund Bond Fund
-------------------- ----------------- -----------------
Amount Shares Amount Shares Amount Shares
---------- ------- -------- ------ --------- ------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ......................................... $ 57,136 4,137 $ 1,498 111 $ 7,517 791
Dividends reinvested .................................. -- -- 2,138 171 386 41
Shares redeemed ....................................... (55,521) (4,018) (1,051) (78) (2,003) (211)
----------- -------- --------- ------- --------- -------
Net increase .......................................... 1,615 119 $ 2,585 204 $ 5,900 621
=========== ======== ========= ======= ========= =======
Investor B Shares:
Shares issued ......................................... 2,157 156 $ 886 66 $ 299 31
Dividends reinvested .................................. -- -- 569 46 35 4
Shares redeemed ....................................... (751) (54) (170) (13) (286) (30)
----------- -------- --------- ------- --------- -------
Net increase .......................................... 1,406 102 $ 1,285 99 $ 48 5
=========== ======== ========= ======= ========= =======
Investor C Shares:
Shares issued ......................................... 231 16 $ 234 18 $ 5 1
Dividends reinvested .................................. -- -- 61 5 -- --
Shares redeemed ....................................... (35) (2) (67) (5) (1) --
----------- -------- --------- ------- --------- -------
Net increase .......................................... 196 14 $ 228 18 $ 4 1
=========== ======== ========= ======= ========= =======
Institutional Shares:
Shares issued ......................................... 44,744 3,157 $ 24,674 1,872 $ 18,074 1,903
Dividends reinvested .................................. 62 4 12,050 963 1,856 196
Shares redeemed ....................................... (54,905) (3,895) (13,735) (1,032) (22,560) (2,374)
----------- -------- --------- ------- --------- -------
Net increase (decrease) ............................... (10,099) (734) $ 22,989 1,803 $ (2,630) (275)
=========== ======== ========= ======= ========= =======
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)
=========== ======== ========= ======= ========= =======
</TABLE>
Continued
102
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
Capital Share Transactions, continued
(Amounts in Thousands)
<TABLE>
<CAPTION>
Intermediate
Government U.S. Government
Obligations Fund Income Fund Bond Fund
------------------- ------------------- -------------------
Amount Shares Amount Shares Amount Shares
---------- ------- ---------- ------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ........................................... $ 633 65 $ 8,970 971 $ 2,739 288
Dividends reinvested .................................... 448 46 1,134 123 503 53
Shares redeemed ......................................... (3,523) (361) (7,007) (758) (3,460) (363)
---------- ------- ---------- ------- ---------- -------
Net increase (decrease) ................................. $ (2,442) (250) $ 3,097 336 $ (218) (22)
========== ======= ========== ======= ========== =======
Investor B Shares:
Shares issued ........................................... $ 220 23 $ 4,028 437 $ 928 98
Dividends reinvested .................................... 43 4 400 44 107 11
Shares redeemed ......................................... (82) (8) (1,398) (152) (360) (38)
---------- ------- ---------- ------- ---------- -------
Net increase ............................................ $ 181 19 $ 3,030 329 $ 675 71
========== ======= ========== ======= ========== =======
Investor C Shares:
Shares issued ........................................... $ 89 9 $ 37 4 $ 165 17
Dividends reinvested .................................... 3 -- 2 -- 7 1
Shares redeemed ......................................... (11) (1) (36) (4) (21) (2)
---------- ------- ---------- ------- ---------- -------
Net increase ............................................ $ 81 8 $ 3 -- $ 151 16
========== ======= ========== ======= ========== =======
Institutional Shares:
Shares issued ........................................... $ 14,344 1,475 $ 22,050 2,385 $ 45,073 4,690
Dividends reinvested .................................... 1,867 192 490 53 12,881 1,340
Shares redeemed ......................................... (35,659) (3,665) (17,338) (1,875) (72,468) (7,533)
---------- ------- ---------- ------- ---------- -------
Net increase (decrease) ................................. $ (19,448) (1,998) $ 5,202 563 $ (14,514) (1,503)
========== ======= ========== ======= ========== =======
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
========== ======= ========== ======= ========== =======
</TABLE>
Continued
103
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
Capital Share Transactions, continued
(Amounts in Thousands)
<TABLE>
<CAPTION>
Michigan
Municipal Municipal
Bond Fund Bond Fund
----------------- ------------------
Amount Shares Amount Shares
--------- ------ --------- -------
<S> <C> <C> <C> <C>
For the six months ended December 31, 1996:
Investor A Shares:
Shares issued ................................................................ $ 7,025 676 $ 3,995 369
Dividends reinvested ......................................................... 138 13 672 62
Shares redeemed .............................................................. (6,009) (578) (2,682) (248)
--------- ------ --------- -------
Net increase ................................................................. $ 1,154 111 $ 1,985 183
========= ======= ========= =======
Investor B Shares:
Shares issued ................................................................ $ 306 30 $ 232 22
Dividends reinvested ......................................................... 14 1 56 5
Shares redeemed .............................................................. (73) (7) (322) (29)
--------- ------ --------- -------
Net increase (decrease) ...................................................... $ 247 24 $ (34) (2)
========= ======= ========= =======
Institutional Shares:
Shares issued ................................................................ $ 9,319 889 $ 17,558 1,624
Dividends reinvested ......................................................... 217 21 600 56
Shares redeemed .............................................................. (11,524) (1,099) (13,138) (1,213)
--------- ------ --------- -------
Net increase (decrease) ...................................................... $ (1,988) (189) $ 5,020 467
========= ======= ========= =======
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
========= ======= ========= =======
</TABLE>
Continued
104
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
5. Related Party Transactions:
Investment advisory services are provided to the Group by FIC Gulfstream
Global Investors, Ltd. ("Gulfstream") serves as sub-investment adviser to
the Balanced Fund and the International Discovery Fund. Under the terms of
the investment advisory agreement, FIC is entitled to receive fees based
on a percentage of the average daily net assets of 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 six-months ended December 31, 1996, BISYS received $982,639
in commissions from sales of shares of the variable net asset value funds
of which $105,145 was allowed to the First America Brokerage Service,
Inc., an affiliate of First America and an investment dealer of the
Group's shares. BISYS receives no fees for providing distribution services
to the money market funds. BISYS Ohio serves the Group as transfer agent
and mutual fund accountant.
The Group has adopted an Investor A Distribution and Shareholder Service
Plan (the "Investor A Plan"), an Investor B Distribution and Shareholder
Service Plan (the "Investor B Plan"), and an Investor C Distribution and
Shareholder Service Plan (the "Investor C Plan"), each in accordance with
Rule 12b-1 under the 1940 Act. Pursuant to the Investor A Plan, each Fund
is authorized to pay or reimburse BISYS, as distributor of Investor A
shares, a periodic amount, calculated at an annual rate not to exceed
0.25% of the average daily net 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
105
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
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 December 31, 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%
Voluntary fee reduction.......................................... $ 1 -- -- --
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)........................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions......................................... $ 82 $ 41 $ 193 $ 15
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......................................... $ 126 $ 145 $ 96 $ 37
Transfer Agent and Mutual Fund Accountant Fees................... $ 94 $ 56 $ 55 $ 35
<CAPTION>
Equity Large Mid Small
Income Capitalization Capitalization Capitalization
Fund Fund 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%
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.20% 0.20% 0.20% 0.20%
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%
Voluntary fee reduction.................................... -- -- $ 4 --
Shareholder Service Fees Investor C:
Annual fee before voluntary fee reductions
(percentage of average net assets)..................... 0.25% 0.25% 0.25% 0.25%
Voluntary fee reduction.................................... -- -- $ 1 $ 3
Transfer Agent and Mutual Fund Accountant Fees............. $ 157 $ 79 $ 232 $ 244
</TABLE>
Continued
106
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Limited Intermediate
International Balanced Maturity Government
Discovery Allocation 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)................... (a) 1.00% 0.74% 0.74%
Voluntary fee reduction.................................. $ 31 $ 177 $ 148 $ 48
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions................................. -- -- $ 39 $ 61
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........... $ 209 $ 90 $ 76 $ 91
<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.................................. $ 305 $ 116 $ 137 $ 221
Administration Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions................................. $ 53 $ 144 $ 72 $ 116
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........... $ 127 $ 143 $ 60 $ 90
</TABLE>
(a) 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
net assets between $100 and $400 million, and 1.05% over $400 million.
Continued
107
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Prime Obligations Fund
------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -------------------------------------------------------
(Unaudited) 1996 1995
-------------------------- -------------------------- --------------------------
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 ........ 0.024 0.025 0.050 0.050 0.047 0.048
--------- --------- --------- -------- --------- ---------
Distributions
Net investment
income ........ (0.024) (0.025) (0.050) (0.051) (0.047) (0.048)
--------- --------- --------- -------- --------- ---------
Net Asset Value,
End of Period ... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========= ========= ========= ======== ========= =========
Total Return ....... 2.43%(c) 2.49%(c) 5.07% 5.17% 4.81% 4.91%
Ratios/Supplementary Data:
Net Assets at end
of period (000) . $ 179,307 $ 696,077 $ 147,478 $596,075 $ 108,565 $ 640,380
Ratio of expenses
to average net
assets .......... 0.72%(b) 0.62%(b) 0.74% 0.64% 0.75% 0.65%
Ratio of net
investment
income to
average net
assets .......... 4.78%(b) 4.88%(b) 4.93% 5.05% 4.71% 4.83%
Ratio of expenses
to average net
assets*.......... 0.90%(b) 0.64%(b) 0.91% 0.66% 0.92% 0.67%
Ratio of net
investment
income to
average net
assets*.......... 4.61%(b) 4.86%(b) 4.76% 5.03% 4.54% 4.81%
<CAPTION>
-------------------------------------------------------
Year ended June 30,
-------------------------------------------------------
1994 1993 (a)
-------------------------- --------------------------
Investor A Institutional Investor A Institutional
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period .......... $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- ---------
Investment Activities
Net investment
income ........ 0.027 0.028 0.028 0.029
-------- -------- -------- ---------
Distributions
Net investment
income ........ (0.027) (0.028) (0.028) (0.029)
-------- -------- -------- ---------
Net Asset Value,
End of Period ... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== =========
Total Return ....... 2.75% 2.85% 2.89% 2.91%
Ratios/Supplementary Data:
Net Assets at end
of period (000) . $105,611 $561,697 $129,433 $ 478,821
Ratio of expenses
to average net
assets .......... 0.74% 0.64% 0.66% 0.64%
Ratio of net
investment
income to
average net
assets .......... 2.71% 2.84% 2.86% 2.88%
Ratio of expenses
to average net
assets*.......... 0.91% 0.66% 0.71% 0.66%
Ratio of net
investment
income to
average net
assets*.......... 2.54% 2.82% 2.81% 2.86%
</TABLE>
- ---------------
* During the period, certain fees were voluntarily reduced. If such
voluntary fee reductions had not occurred, the ratios would have been as
indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
108
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
U.S. Government Obligations Fund
------------------------------------------------
Six months ended
December 31, 1996
(Unaudited)
---------------------------------
Investor A Institutional
------------ -------------
<S> <C> <C>
Net Asset Value
Beginning of
Period ........... $ 1.000 $ 1.000
--------- ---------
Investment Activities
Net investment
income ......... 0.024 0.024
--------- ---------
Distributions
Net investment
income ......... (0.024) (0.024)
--------- ---------
Net Asset Value,
End of Period .... $ 1.000 $ 1.000
========= =========
Total Return ....... 2.37%(c) 2.42%(c)
<CAPTION>
Ratios/Supplementary Data:
<S> <C> <C>
Net Assets at end of
period (000) ..... $ 179,967 $ 211,515
Ratio of expenses to
average net
assets ........... 0.74%(b) 0.64%(b)
Ratio of net
investment
income to
average net
assets ........... 4.65%(b) 4.75%(b)
Ratio of
expenses to
average net
assets*........... 0.91%(b) 0.66%(b)
Ratio of net
investment
income to
average net
assets*........... 4.48%(b) 4.73%(b)
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
- ----------------------------------------------------------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
U.S. Government Obligations Fund
----------------------------------------------------------------------------------------------------------
Year ended June 30,
----------------------------------------------------------------------------------------------------------
1996 1995 1994 1993 (a)
------------------------- ------------------------- ------------------------- -------------------------
Investor A Institutional Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of
Period ........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment
income ......... 0.049 0.050 0.047 0.048 0.027 0.028 0.028 0.028
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income ......... (0.049) (0.050) (0.047) (0.048) (0.027) (0.028) (0.028) (0.028)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period .... $ 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%
<CAPTION>
Ratios/Supplementary Data:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Assets at end of
period (000) ..... $186,944 $207,451 $169,179 $227,565 $172,482 $192,612 $208,311 $223,855
Ratio of expenses to
average net
assets ........... 0.74% 0.64% 0.77% 0.67% 0.77% 0.67% 0.66% 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%
Ratio of
expenses to
average net
assets*........... 0.91% 0.66% 0.94% 0.69% 0.94% 0.69% 0.72% 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%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
109
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Treasury Fund
---------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 ------------------------------------------------ December 1, 1993 to
(Unaudited) 1996 1995 June 30, 1994 (a)
----------------------- ----------------------- ----------------------- ------------------------
Investor Institutional Investor Institutional Investor Institutional Investor Institutional
A A A A
-------- ------------- -------- ------------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
-------- -------- -------- -------- -------- -------- ------ -------
Investment Activities
Net investment income ... 0.024 0.024 0.049 0.050 0.047 0.048 0.016 0.017
-------- -------- -------- -------- -------- -------- ------ -------
Distributions
Net investment income ... (0.024) (0.024) (0.049) (0.050) (0.047) (0.048) (0.016) (0.017)
-------- -------- -------- -------- -------- -------- ------ -------
Net Asset Value,
End of Period ........... $ 1.001 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
======== ======== ======== ======== ======== ======== ====== =======
Total Return (excludes
sales and redemption 2.38%(c) 2.43%(c) 5.04% 5.14% 4.81% 4.91% 1.66% 1.72%
charges) ................
Ratios/Supplementary Data:
Net Assets at end of
period (000) ............ $128,880 $300,409 $158,723 $223,416 $105,391 $192,232 $56,535 $76,035
Ratio of expenses to
average net assets ...... 0.68%(b) 0.58%(b) 0.70% 0.60% 0.75% 0.64% 0.64%(b) 0.54%(b)
Ratio of net investment
income to average net 4.67%(b) 4.78%(b) 4.87% 4.98% 4.82 % 4.95% 2.84%(b) 3.15%(b)
assets ..................
Ratio of expenses to
average net assets*...... 0.93%(b) 0.68%(b) 0.95% 0.70% 1.04 % 0.78% 0.99%(b) 0.74%(b)
Ratio of net investment
income to average net 4.42%(b) 4.68%(b) 4.62% 4.88% 4.52 % 4.81% 2.49%(b) 2.95%(b)
assets*..................
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
110
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Tax-Free Fund
----------------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -------------------------------------------------------------------------------
(Unaudited) 1996 1995 1994
------------------------- ------------------------- ------------------------- -------------------------
Investor A Institutional Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period ............... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- --------- ------- -------- ------- ------- ------- -------
Investment Activities
Net investment
income ............. 0.013 0.014 0.029 0.030 0.029 0.030 0.018 0.019
------- --------- ------- -------- ------- ------- ------- -------
Distributions
Net investment
income ............. (0.013) (0.014) (0.029) (0.030) (0.029) (0.030) (0.018) (0.019)
------- --------- ------- -------- ------- ------- ------- -------
Net Asset Value,
End of Period ........ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ========= ======= ======== ======= ======= ======= =======
Total Return ........... 1.34%(c) 1.39%(c) 2.91% 3.02% 2.90% 3.00% 1.81% 1.92%
Ratios/Supplementary Data:
Net Assets at end of
period (000) ......... $63,210 $ 109,919 $41,713 $106,154 $45,102 $98,489 $48,256 $84,465
Ratio of expenses to
average net assets ... 0.79%(b) 0.69%(b) 0.76% 0.66% 0.74% 0.64% 0.68% 0.58%
Ratio of net investment
income to average net
assets ............... 2.65%(b) 2.74%(b) 2.89% 2.97% 2.88% 2.97% 1.81% 1.90%
Ratio of expenses to
average net assets*... 0.96%(b) 0.71%(b) 0.93% 0.68% 0.95% 0.70% 0.93% 0.68%
Ratio of net investment
income to average net
assets*............... 2.48%(b) 2.72%(b) 2.72% 2.95% 2.67% 2.91% 1.56% 1.80%
<CAPTION>
Tax-Free Fund
-------------------------
Year ended June 30,
-------------------------
1993 (a)
-------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period ............... $ 1.000 $ 1.000
------- --------
Investment Activities
Net investment
income ............. 0.019 0.019
------- --------
Distributions
Net investment
income ............. (0.019) (0.019)
------- --------
Net Asset Value,
End of Period ........ $ 1.000 $ 1.000
======= ========
Total Return ........... 2.07% 2.10%
Ratios/Supplementary Data
Net Assets at end of
period (000) ......... $54,886 $ 86,292
Ratio of expenses to
average net assets ... 0.58% 0.55%
Ratio of net investment
income to average net
assets ............... 2.05% 2.08%
Ratio of expenses to
average net assets*... 0.72% 0.65%
Ratio of net investment
income to average net
assets*............... 1.91% 1.98%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
111
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Equity Income Fund
--------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 ------------------------------------------------
(Unaudited) 1996
------------------------------------------------- ------------------------------------------------
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 ... $ 17.31 $ 17.27 $17.36 $ 17.30 $ 14.49 $14.47 $14.54 $ 14.49
------- ------- ------ ------- ------- ------ ------ --------
Investment Activities
Net investment income . 0.15 0.08 0.07 0.17 0.30 0.19 0.19 0.34
Net realized and
unrealized gains
from investments .... 1.14 1.15 1.14 1.09 3.27 3.25 3.27 3.26
------- ------- ------ ------- ------- ------ ------ --------
Total from
Investment
Activities ........ 1.29 1.23 1.21 1.26 $ 3.57 3.44 3.46 3.60
------- ------- ------ ------- ------- ------ ------ --------
Distributions
Net investment income . (0.16) (0.10) (0.10) (0.19) (0.30) (0.19) (0.19) (0.34)
Net realized gains .... (1.69) (1.69) (1.69) (1.69) (0.45) (0.45) (0.45) (0.45)
------- ------- ------ ------- ------- ------ ------ --------
Total Distributions . (1.85) (1.79) (1.79) (1.88) $ (0.75) (0.64) (0.64) (0.79)
------- ------- ------ ------- ------- ------ ------ --------
Net Asset Value,
End of Period ......... $ 16.75 $ 16.71 $16.78 $ 16.68 $ 17.31 $17.27 $17.36 $ 17.30
======= ======= ====== ======= ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges) .............. 7.30%(c) 6.96%(c) 6.81%(c) 7.10%(c) 25.05% 24.11% 24.17% 25.30%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $91,737 $15,681 $ 303 $326,067 $82,396 $12,590 $ 164 $337,318
Ratio of expenses to
average net assets .... 1.56%(b) 2.31%(b) 2.30%(b) 1.31%(b) 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
income to average net
assets ................ 1.70%(b) 0.95%(b) 0.92%(b) 1.97%(b) 1.86% 1.11% 1.11% 2.11%
Ratio of expenses to
average net assets*.... 1.56%(b) 2.31%(b) 2.30%(b) 1.31%(b) 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
income to average net
assets*................ 1.70%(b) 0.95%(b) 0.92%(b) 1.97%(b) 1.86% 1.11% 1.11% 2.11%
Portfolio turnover (g)... 15.67% 15.67% 15.67% 15.67% 40.75% 40.75% 40.75% 40.75%
Average commission rate
paid (h)............... $0.0800 $0.0800 $0.0800 $0.0800 $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) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
112
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Equity Income Fund, continued
---------------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------------
1995 1994(a) 1993 (a)
------------------------------------------ --------------------------------- ----------------------
Investor Investor Investor Institutional Investor Investor Institutional Investor Institutional
A B C(e) A B(d) A
-------- -------- -------- ------------- -------- -------- ------------ -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ... $ 13.50 $ 13.49 $ 13.38 $ 13.50 $ 14.69 $ 14.92 $ 14.69 $ 13.14 $ 13.14
------- ------- ------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment income . 0.36 0.26 0.11 0.39 0.37 0.13 0.39 0.45 0.45
Net realized and
unrealized gains
(losses) from
investments ......... 1.00 0.99 1.17 1.00 (0.56) (1.43) (0.56) 1.69 1.69
------- ------- ------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities ........ 1.36 1.25 1.28 1.39 (0.19) (1.30) (0.17) 2.14 2.14
------- ------- ------- -------- -------- -------- -------- -------- --------
Distributions
Net investment income . (0.36) (0.26) (0.11) (0.39) (0.37) (0.13) (0.39) (0.45) (0.45)
In excess of net
investment income ... (0.01) (0.01) (0.01) (0.01) -- -- -- -- --
Net realized gains .. -- -- -- -- (0.24) -- (0.24) (0.14) (0.14)
In excess of net
realized gains ...... -- -- -- -- (0.39) -- (0.39) -- --
------- ------- ------- -------- -------- -------- -------- -------- --------
Total Distributions . (0.37) (0.27) (0.12) (0.40) (1.00) (0.13) (1.02) (0.59) (0.59)
------- ------- ------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ......... $ 14.49 $ 14.47 $ 14.54 $ 14.49 $ 13.50 $ 13.49 $ 13.50 $ 14.69 $ 14.69
======= ======= ======= ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges) .............. 10.32% 9.41% 9.71%(e) 10.55% (1.63)% (8.76)% (1.53)% 16.71% 16.73%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) .......... $71,063 $ 7,131 $ 25 $346,164 $ 76,108 $ 3,836 $355,538 $ 50,000 $384,240
Ratio of expenses to
average net assets .... 1.54% 2.32% 2.30%(b) 1.32% 1.40% 2.33%(b) 1.30% 1.29% 1.26%
Ratio of net investment
income to average net 2.65% 1.86% 1.88%(b) 2.86% 2.56% 1.87%(b) 2.64% 3.24% 3.28%
assets ................
Ratio of expenses to
average net assets* ... 1.57% 2.57% 2.55%(b) 1.32% 1.55% 2.59%(b) 1.30% 1.36% 1.28%
Ratio of net investment
income to average net
assets* ............... 2.61% 1.61% 1.62%(b) 2.86% 2.41% 1.61%(b) 2.64% 3.17% 3.25%
Portfolio turnover (f) .. 77.70% 77.70% 77.70% 77.70% 69.35% 69.35% 69.35% 67.26% 67.26%
</TABLE>
See notes to financial statements.
113
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Large Capitalization Fund
-------------------------------------------------------------------------------------------------------
For Six Months Ended December 31, 1996 December 28, 1995 to June 30, 1996 (a)
--------------------------------------------------- --------------------------------------------------
Investor Investor Investor Institutional Investor Investor Investor Institutional
A B C A B C
-------- -------- -------- ------------- -------- -------- -------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ... $ 11.23 $ 11.22 $ 11.16 $ 11.25 $ 10.00 $ 10.00 $ 10.00 $ 10.00
-------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment income
(loss) .............. 0.01 (0.02) -- 0.02 0.03 0.01 -- 0.03
Net realized and
unrealized gains
from investments .... 1.04 1.03 1.00 1.04 1.23 1.23 1.17 1.25
-------- -------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities ........ 1.05 1.01 1.00 1.06 1.26 1.24 1.17 1.28
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment income . (0.01) -- (0.01) (0.02) (0.03) (0.02) -- (0.03)
In excess of net
investment income ... -- -- -- -- -- -- (0.01) --
Net realized gains .... (0.08) (0.08) (0.08) (0.08) -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total Distributions . (0.09) (0.08) (0.09) (0.10) (0.03) (0.02) (0.01) (0.03)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ......... $ 12.19 $ 12.15 $ 12.07 $ 12.21 $ 11.23 $ 11.22 $ 11.16 $ 11.25
======== ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges) .............. 9.32%(c) 8.98%(c) 8.89%(c) 9.42%(c) 8.99% 8.77% 8.14% 12.86%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $ 3,216 $ 1,805 $ 23 $377,213 $ 1,657 $ 832 $ 2 $274,150
Ratio of expenses to
average net assets .... 1.35%(b) 2.10%(b) 2.10%(b) 1.10%(b) 1.40%(b) 1.78%(b) 2.24%(b) 2.19%(b)
Ratio of net investment
income (loss) to
average net assets .... 0.10%(b) (0.64)%(b) (0.63)%(b) 0.36%(b) 0.31%(b) (0.32)%(b) (0.45)%(b) 1.26%(b)
Ratio of expenses to
average net assets *... 1.35%(b) 2.10%(b) 2.25%(b) 1.10%(b) 2.62%(b) 4.07%(b) 4.25%(b) 2.26%(b)
Ratio of net investment
income (loss) to
average net assets *... 0.10%(b) (0.64)%(b) (0.79)%(b) 0.36%(b) (0.91)%(b) (2.61)%(b) (2.46)%(b) 1.19%(b)
Portfolio turnover (d)... 16.41% 16.41% 16.41% 16.41% 0.86% 0.86% 0.86% 0.86%
Average commission rate
paid (e)............... $ 0.0800 $ 0.0800 $ 0.0800 $ 0.0800 $ 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) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
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>
Mid-Capitalization Fund
----------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -----------------------------------------------
(Unaudited) 1996
------------------------------------------------ -----------------------------------------------
Investor Investor Investor Institutional Investor Investor Investor Institutional
A B C A B C
-------- -------- -------- ------------- -------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ... $ 20.71 $ 20.28 $ 20.36 $ 20.83 $ 16.56 $16.35 $16.40 $ 16.62
-------- -------- ------- -------- -------- ------- ------- ---------
Investment Activities
Net investment loss ... (0.08) (0.12) (0.11) (0.07) (0.16) (0.23) (0.17) (0.16)
Net realized and
unrealized gains
from investments .... 0.86 0.80 0.81 0.81 4.97 4.82 4.79 5.03
-------- -------- ------- -------- -------- ------- ------- ---------
Total from
Investment
Activities ........ 0.78 0.68 0.70 0.74 4.81 4.59 4.62 4.87
-------- -------- ------- -------- -------- ------- ------- ---------
Distributions
Net realized gains .... (6.13) (6.13) (6.13) (6.13) (0.66) (0.66) (0.66) (0.66)
-------- -------- ------- -------- -------- ------- ------- ---------
Total Distributions . (6.13) (6.13) (6.13) (6.13) (0.66) (0.66) (0.66) (0.66)
-------- -------- ------- -------- -------- ------- ------- ---------
Net Asset Value,
End of Period ......... $ 15.36 $ 14.83 $ 14.93 $ 15.44 $ 20.71 $20.28 $20.36 $ 20.83
======== ======== ======= ======== ======== ======= ======= =========
Total Return (excludes
sales and redemption
charges) .............. 3.36%(c) 2.92%(c) 3.03%(c) 3.04%(c) 29.57% 28.59% 28.69% 29.83%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $ 81,827 $19,722 $ 1,607 $540,249 $66,260 $15,840 $1,088 $650,495
Ratio of expenses to
average net assets .... 1.55%(b) 2.30%(b) 2.30%(b) 1.30%(b) 1.54% 2.29% 2.29% 1.29%
Ratio of net investment
loss to average net (1.10)%(b) (1.85)%(b) (1.85)%(b) (0.85)%(b) (0.94)% (1.70)% (1.73)% (0.68)%
assets ................
Ratio of expenses to
average net assets*.... 1.55%(b) 2.33%(b) 2.39%(b) 1.30%(b) 1.54% 2.29% 2.29% 1.29%
Ratio of net investment
loss to average net (1.10)%(b) (1.88)%(b) (1.94)%(b) (0.85)%(b) (0.94)% (1.71)% (1.74)% (0.68)%
assets*................
Portfolio turnover (g)... 21.11% 21.11% 21.11% 21.11% 49.27% 49.27% 49.27% 49.27%
Average commission rate
paid (h)............... $ 0.0800 $0.0800 $0.0800 $ 0.0800 $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) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor
C shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor
C shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
116
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Mid-Capitalization Fund, continued
--------------------------------------------------------------------------------------------------------
Year ended June 30,
--------------------------------------------------------------------------------------------------------
1995 1994 1993 (a)
-------------------------------------------- ---------------------------------- ----------------------
Investor Investor Investor Institutional Investor Investor Institutional Investor Institutional
A B C (e) A B (d) A
-------- -------- -------- ------------- -------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period . $ 14.69 $ 14.63 $ 16.29 $ 14.70 $ 15.11 $ 16.66 $ 15.10 $ 12.80 $ 12.80
-------- -------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment loss . (0.12) (0.11) (0.02) (0.08) (0.10) (0.05) (0.11) (0.01) (0.01)
Net realized and
unrealized gains
(losses) from
investments ....... 3.46 3.30 1.60 3.47 (0.28) (1.98) (0.25) 2.74 2.73
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities ...... 3.34 3.19 1.58 3.39 (0.38) (2.03) (0.36) 2.73 2.72
-------- ------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income (loss)...... (0.48) (0.48) -- (0.49) -- -- -- (0.02) (0.02)
Net realized gains .. (0.99) (0.99) (1.47) (0.98) (0.04) -- (0.04) (0.40) (0.40)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Total
Distributions ... (1.47) (1.47) (1.47) (1.47) (0.04) -- (0.04) (0.42) (0.42)
-------- ------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ....... $ 16.56 $ 16.35 $ 16.40 $ 16.62 $ 14.69 $ 14.63 $ 14.70 $ 15.11 $ 15.10
======== ======= ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges) ............ 24.85% 23.88% 23.56%(e) 25.20% (2.57)% (12.18)% (2.44)% 21.42% 21.34%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $ 43,803 $ 6,073 $ 153 $683,320 $ 36,108 $ 1,616 $533,260 $ 26,460 $595,127
Ratio of expenses to
average net assets .. 1.51% 2.29% 2.27%(b) 1.29% 1.38% 2.30%(b) 1.28% 1.28% 1.24%
Ratio of net
investment loss to
average net assets .. (0.87)% (1.61)% (1.43)%(b) (0.64)% (0.75)% (1.57)%(b) (0.65)% (0.12)% (0.09)%
Ratio of expenses to
average net assets* . 1.54% 2.54% 2.53%(b) 1.29% 1.53% 2.56%(b) 1.28% 1.35% 1.27%
Ratio of net
investment loss to
average net assets* . (0.90)% (1.87)% (1.70)%(b) (0.65)% (0.90)% (1.83)%(b) (0.65)% (0.19)% (0.11)%
Portfolio turnover (f). 46.39% 46.39% 46.39% 46.39% 70.87% 70.87% 70.87% 66.48% 66.48%
</TABLE>
See notes to financial statements.
117
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Small Capitalization Fund
----------------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 ---------------------------------------------------
(Unaudited) 1996
---------------------------------------------------- ---------------------------------------------------
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.. $ 34.17 $ 33.78 $ 33.83 $ 34.50 $ 25.88 $ 25.79 $ 25.91 $ 26.08
-------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment loss.. (0.18) (0.24) (0.23) (0.15) (0.23) (0.39) (0.20) (0.27)
Net realized and
unrealized gains
(losses) from
investments ....... 0.02 (0.02) (0.01) -- 12.17 12.03 11.77 12.34
-------- -------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities ...... (0.16) (0.26) (0.24) (0.15) 11.94 11.64 11.57 12.07
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net realized gains .. (5.25) (5.25) (5.25) (5.25) (3.65) (3.65) (3.65) (3.65)
-------- -------- -------- -------- -------- -------- -------- --------
Total
Distributions ... (5.25) (5.25) (5.25) (5.25) (3.65) (3.65) (3.65) (3.65)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value,
End of Period ....... $ 28.76 $ 28.27 $ 28.34 $ 29.10 $ 34.17 $ 33.78 $ 33.83 $ 34.50
======== ======== ======== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges) ............ (0.34)%(c) (0.63)%(c) (0.55)%(c) (0.32)%(c) 49.93% 48.87% 48.32% 50.03%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $163,946 $ 39,299 $ 10,482 $503,818 $187,016 $ 30,310 $ 5,751 $528,866
Ratio of expenses to
average net assets .. 1.55%(b) 2.30%(b) 2.30%(b) 1.30%(b) 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss to
average net assets .. (1.26)%(b) (2.02)%(b) (2.02)%(b) (1.02)%(b) (1.18)% (1.93)% (1.94)% (0.93)%
Ratio of expenses to
average net assets*.. 1.55%(b) 2.30%(b) 2.36%(b) 1.30%(b) 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss to (1.26)%(b) (2.02)%(b) (2.08)%(b) (1.02)%(b) (1.18)% (1.93)% (1.94)% (0.93)%
average net assets*..
Portfolio turnover (g). 26.10% 26.10% 26.10% 26.10% 67.22% 67.22% 67.22% 67.22%
Average commission
rate paid (h)........ $ 0.0772 $ 0.0772 $ 0.0772 $ 0.0772 $ 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) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of
Investor C shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
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,
-----------------------------------------------------------------------------
1995 1994
--------------------------------------------------- -------------------------
Investor A Investor B Investor C(e) Institutional Investor A Investor B(d)
---------- ---------- ------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period........ $ 19.75 $ 19.83 $ 24.17 $ 19.83 $ 20.31 $22.71
------- ------- ------- -------- ------- ------
Investment Activities
Net investment loss........ (0.18) (0.19) (0.05) (0.25) (0.15) (0.09)
Net realized and unrealized
gains (losses) from
investments.............. 8.46 8.30 3.94 8.65 0.09 (2.79)
------- ------- ------- -------- ------- ------
Total from Investment
Activities............. 8.28 8.11 3.89 8.40 (0.06) (2.88)
------- ------- ------- -------- ------- ------
Distributions
Net realized gains
(losses)................. (2.15) (2.15) (2.15) (2.15) (0.50) --
------- ------- ------- -------- ------- ------
Total Distributions...... (2.15) (2.15) (2.15) (2.15) (0.50) --
------- ------- ------- -------- ------- ------
Net Asset Value,
End of Period.............. $ 25.88 $ 25.79 $ 25.91 $ 26.08 $ 19.75 $19.83
======= ======= ======= ======== ======= ======
Total Return (excludes
sales and redemption
charges)................... 44.88% 43.78% 44.37%(e) 45.32% (0.55)% (12.68)%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............... $71,894 $ 9,990 $ 224 $354,825 $42,791 $2,130
Ratio of expenses to
average net assets......... 1.55% 2.32% 3.53%(b) 1.33% 1.40% 2.35%(b)
Ratio of net investment
income (loss) to average
net assets................. (1.27)% (2.03)% (3.06)%(b) 1.06% (1.24)% (2.19)%(b)
Ratio of expenses to
average net assets*........ 1.58% 2.55% 3.53%(b) 1.33% 1.55% 2.61%(b)
Ratio of net investment loss
to average net assets*..... (1.30)% (2.26)% (3.06)%(b) (1.06)% (1.39)% (2.45)%(b)
Portfolio turnover (f)....... 50.53% 50.53% 50.53% 50.53% 72.64% 72.64%
<CAPTION>
Small Capitalization Fund, continued
------------------------------------------
Year ended June 30,
------------------------------------------
1994 1993(a)
------------- --------------------------
Institutional Investor A Institutional
------------- ---------- -------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period........ $ 20.31 $ 14.64 $ 14.64
--------- ------- ---------
Investment Activities
Net investment loss........ (0.28) (0.13) (0.14)
Net realized and unrealized
gains (losses) from
investments.............. 0.30 6.75 6.76
--------- ------- ---------
Total from Investment
Activities............. 0.02 6.62 6.62
--------- ------- ---------
Distributions
Net realized gains
(losses)................. (0.50) (0.95) (0.95)
--------- ------- ---------
Total Distributions...... (0.50) (0.95) (0.95)
--------- ------- ---------
Net Asset Value,
End of Period.............. $ 19.83 $ 20.31 $ 20.31
========= ======= =========
Total Return (excludes
sales and redemption
charges)................... (0.15)% 45.77% 45.77%
Ratios/Supplementary Data:
Net Assets at end of
period (000)............... $271,425 $27,976 $291,462
Ratio of expenses to
average net assets......... 1.30% 1.29% 1.26%
Ratio of net investment
income (loss) to average
net assets................. (1.14)% (1.02)% (0.98)%
Ratio of expenses to
average net assets*........ 1.30% 1.36% 1.28%
Ratio of net investment
income (loss) to average
net assets*................ (1.14)% (1.09)% (1.01)%
Portfolio turnover (f)....... 72.64% 71.21% 71.21%
</TABLE>
See notes to financial statements.
119
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
International Discovery Fund
------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -----------------------------------------------
(Unaudited) 1996
------------------------------------------------ -----------------------------------------------
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 ... $ 14.01 $ 13.77 $14.08 $ 14.11 $ 12.23 $ 12.15 $ 12.42 $ 12.33
------- ------- ------ ------- ------- ------- ------- --------
Investment Activities
Net investment loss ... (0.06) (0.10) (0.09) (0.04) (0.02) (0.08) (0.10) 0.02
Net realized and
unrealized gains
from investments .... 0.74 0.71 0.72 0.74 1.81 1.70 1.79 1.80
------- ------- ------ ------- ------- ------- ------- --------
Total from
Investment
Activities ........ 0.68 0.61 0.63 0.70 1.79 1.62 1.69 1.82
------- ------- ------ ------- ------- ------- ------- --------
Distributions
Net investment income . -- -- -- -- -- -- -- (0.02)
In excess of net
investment income ... -- -- -- -- (0.01) -- (0.03) (0.02)
------- ------- ------ ------- ------- ------- ------- --------
Total Distributions . -- -- -- -- (0.01) -- (0.03) (0.04)
------- ------- ------ ------- ------- ------- ------- --------
Net Asset Value,
End of Period ......... $ 14.69 $ 14.38 $14.71 $ 14.81 $ 14.01 $ 13.77 $ 14.08 $ 14.11
======= ======= ====== ======= ======= ======= ======= =========
Total Return (excludes
sales and redemption
charges) .............. 4.85%(c) 4.43%(c) 4.47%(c) 4.99%(c) 14.65% 13.33% 13.62% 14.76%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $43,237 $11,382 $ 699 $371,314 $39,575 $ 9,489 $ 474 $364,095
Ratio of expenses to
average net assets .... 1.80%(b) 2.55%(b) 2.55%(b) 1.55%(b) 1.80% 2.55% 2.50% 1.55%
Ratio of net investment
loss to average net
assets ................ (0.53)%(b) (1.31)%(b) (1.35)%(b) (0.28)%(b) (0.11)% (0.86)% (0.84)% 0.12%
Ratio of expenses to
average net assets*.... 1.89%(b) 2.64%(b) 2.64%(b) 1.56%(b) 1.88% 2.63% 2.62% 1.55%
Ratio of net investment
loss to average net
assets*................ (0.61)%(b) (1.40)%(b) (1.43)%(b) (0.29)%(b) (0.19)% (0.94)% (0.97)% 0.12%
Portfolio turnover (h)... 26.33% 26.33% 26.33% 26.33% 54.47% 54.47% 54.47% 54.47%
Average commission rate
paid (i)............... $0.0369 $0.0369 $0.0369 $ 0.0369 $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) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(i) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
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,
------------------------------------------------------------------------------------------------
1995 1994
------------------------------------------------------ ----------------------------------------
Investor A Investor B Investor C(e) Institutional Investor A Investor B(d) Institutional
---------- ---------- ------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 13.18 $ 13.21 $ 12.97 $ 13.24 $ 11.50 $ 14.12 $ 11.54
------- ------- ------- ------- ------- ------- --------
Investment Activities
Net investment income
(loss) ................ 0.03 (0.04) 0.03 0.04 (0.02) (0.01) (0.01)
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies .... (0.36) (0.40) 0.04 (0.33) 1.74 (0.90) 1.75
------- ------- ------- ------- ------- ------- --------
Total from Investment
Activities .......... (0.33) (0.44) 0.07 (0.29) 1.72 (0.91) 1.74
------- ------- ------- ------- ------- ------- --------
Distributions
Net investment income ... -- -- -- -- (0.02) -- (0.02)
Net realized gains
(losses)............... (0.62) (0.62) (0.62) (0.62) (0.02) -- (0.02)
------- ------- ------- ------- ------- ------- --------
Total Distributions ... (0.62) (0.62) (0.62) (0.62) (0.04) -- (0.04)
------- ------- ------- ------- ------- ------- --------
Net Asset Value,
End of Period ........... $ 12.23 $ 12.15 $ 12.42 $ 12.33 $ 13.18 $ 13.21 $ 13.24
======= ======= ======= ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges) ................ (2.19)% (3.03) % (1.15)%(g) (1.86)% 14.99% (6.44)% 15.12%
Ratios/Supplementary Data:
Net Assets at end of
period (000) ............ $34,228 $ 5,469 $ 82 $264,759 $36,297 $ 2,680 $261,798
Ratio of expenses to
average net assets ...... 1.78% 2.57% 2.32%(b) 1.56% 1.63% 2.56%(b) 1.52%
Ratio of net investment
income (loss) to average
net assets .............. 0.08% (0.49) % 1.74%(b) 0.31% (0.29)% (0.22)%(b) (0.30)%
Ratio of expenses to
average net
assets* ................. 1.91% 2.92% 3.27%(b) 1.59% 1.84% 2.61%(b) 1.57%
Ratio of net investment
income (loss) to average
net assets* ............. (0.06)% (0.84) % 0.79%(b) 0.28% (0.49)% (0.27)%(b) (0.35)%
Portfolio turnover (g) .... 104.39% 104.39% 104.39% 104.39% 37.23% 37.23% 37.23%
<CAPTION>
International Discovery Fund, continued
-----------------------------
December 29,1992 to
June 30 1993 (a)(f)
-----------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of Period ..... $ 10.00 $ 10.00
------- -------
Investment Activities
Net investment income
(loss) ................ 0.03 0.04
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies .... 1.48 1.51
------- -------
Total from Investment
Activities .......... 1.51 1.55
------- -------
Distributions
Net investment income ... (0.01) (0.01)
Net realized gains
(losses)............... -- --
------- -------
Total Distributions ... (0.01) (0.01)
------- -------
Net Asset Value,
End of Period ........... $ 11.50 $ 11.54
------- -------
Total Return (excludes
sales and redemption
charges) ................ 15.11% 15.52%
Ratios/Supplementary Data:
Net Assets at end of
period (000) ............ $ 8.353 $114,822
Ratio of expenses to
average net assets ...... 1.64%(b) 1.58%(b)
Ratio of net investment
income (loss) to average
net assets .............. (1.02)%(b) (0.82)%(b)
Ratio of expenses to
average net
assets* ................. 1.81%(b) 1.63%(b)
Ratio of net investment
income (loss) to average
net assets* ............. (0.85)%(b) (0.77)%(b)
Portfolio turnover (g) .... 12.47% 12.47%(b)
</TABLE>
See notes to financial statements.
121
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Balanced Allocation Fund
---------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -------------------------------------------------
(Unaudited) 1996
------------------------------------------------- -------------------------------------------------
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 ... $ 13.37 $ 13.36 $ 13.28 $ 13.37 $ 12.19 $ 12.18 $ 12.12 $ 12.19
------- ------- ------- ------- ------- ------- -------- --------
Investment Activities
Net investment income . 0.16 0.10 0.10 0.17 0.32 0.23 0.24 0.36
Net realized and
unrealized gains
from investments .... 0.49 0.48 0.50 0.48 1.74 1.74 1.71 1.74
------- ------- ------- ------- ------- ------- -------- --------
Total from
Investment
Activities ........ 0.65 0.58 0.60 0.65 2.06 1.97 1.95 2.10
------- ------- ------- ------- ------- ------- -------- --------
Distributions
Net investment income . (0.19) (0.12) (0.13) (0.21) (0.31) (0.22) (0.22) (0.35)
Net realized gains .... (1.48) (1.48) (1.48) (1.48) (0.57) (0.57) (0.57) (0.57)
------- ------- ------- ------- ------- ------- -------- --------
Total Distributions . (1.67) (1.60) (1.61) (1.69) (0.88) (0.79) (0.79) (0.92)
------- ------- ------- ------- ------- ------- -------- --------
Net Asset Value,
End of Period ......... $ 12.35 $ 12.34 $ 12.27 $ 12.33 $ 13.37 $ 13.36 $ 13.28 $ 13.37
======= ======= ======= ======= ======= ======= ======== ========
Total Return (excludes
sales and redemption 4.84%(c) 4.35%(c) 4.46%(c) 4.87%(c) 17.51% 16.71% 16.61% 17.81%
charges) ..............
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $18,307 $ 5,177 $ 548 $126,915 $17,097 $ 4,278 $ 362 $113,493
Ratio of expenses to
average net assets .... 1.41%(b) 2.16%(b) 2.15%(b) 1.16%(b) 1.41% 2.16% 2.16% 1.16%
Ratio of net investment
income to average net
assets ................ 2.39%(b) 1.64%(b) 1.63%(b) 2.64%(b) 2.37% 1.64% 1.65% 2.62%
Ratio of expenses to
average net assets*.... 1.66%(b) 2.41%(b) 2.41%(b) 1.41%(b) 1.66% 2.45% 2.41% 1.41%
Ratio of net investment
income to average net
assets*................ 2.14%(b) 1.39%(b) 1.38%(b) 2.39%(b) 2.12% 1.35% 1.40% 2.37%
Portfolio turnover (h)... 321.53% 321.53% 321.53% 321.53% 437.90% 437.90% 437.90% 437.90%
Average commission rate
paid (i)............... $0.0599 $0.0599 $0.0599 $ 0.0599 $0.0848 $0.0848 $ 0.0848 $ 0.0848
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
(i) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
122
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Balanced Allocation Fund, continued
----------------------------------------------------------------------------------------------------
Year ended June 30,
1995 1994 1993 (a)
------------------------------------------ -------------------------------- -----------------------
Investor Investor Investor C Institution Investor Investor B Institution Investor Institutional
A B (e) A (d) A
-------- -------- ---------- ----------- -------- ---------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period ............. $ 10.67 $ 10.67 $11.13 $ 10.67 $11.09 $11.71 $ 11.08 $ 9.68 $ 9.68
------- ------- ------ ------- ------ ------ ------- ------ ------
Investment Activities
Net investment
income ........... 0.28 0.20 0.09 0.31 0.26 0.10 0.27 0.28 0.28
Net realized and
unrealized gains
(losses) from
investments ...... 1.69 1.67 1.16 1.68 (0.43) (1.05) (0.41) 1.42 1.41
------- ------- ------ ------- ------ ------ ------- ------ ------
Total from
Investment
Activities ..... 1.97 1.87 1.25 1.99 (0.17) (0.95) (0.14) 1.70 1.69
-------- -------- ------- -------- ------- ------- -------- ------- -------
Distributions
Net investment
income ........... (0.29) (0.20) (0.10) (0.31) (0.25) (0.09) (0.27) (0.29) (0.29)
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) (0.25) (0.09) (0.27) (0.29) (0.29)
------- ------- ------ ------- ------ ------ ------- ------ ------
Net Asset Value,
End of Period ...... $ 12.19 $ 12.18 $12.12 $ 12.19 $10.67 $10.67 $ 10.67 $11.09 $11.08
======= ======= ====== ======= ====== ====== ======= ====== ======
Total Return
(excludes sales and
redemption charges) 18.96% 17.96% 17.53%(g) 19.22% (1.63)% (8.16)% (1.44)% 17.74% 17.66%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ....... $12,849 $ 1,291 $ 114 $89,294 $11,901 $ 744 $71,427 $6,115 $42,318
Ratio of expenses
to average net
assets ............. 1.47% 2.25% 2.16%(b) 1.25% 1.18% 2.05%(b) 1.09% 1.18% 1.15%
Ratio of net
investment income
to average net
assets ............. 2.54% 1.74% 1.65%(b) 2.75% 2.38% 1.94%(b) 2.49% 2.66% 2.70%
Ratio of expenses to
average net assets* 1.78% 2.77% 2.68%(b) 1.52% 1.63% 2.61%(b) 1.39% 1.53% 1.46%
Ratio of net
investment income
to average net
assets* ............ 2.23% 1.22% 1.13%(b) 2.47% 1.93% 1.38%(b) 2.18% 2.31% 2.40%
Portfolio turnover
(g) ................ 250.66% 250.66% 250.66% 250.66% 192.39% 192.39% 192.39% 177.99% 177.99%
</TABLE>
See notes to financial statements.
123
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
-------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -----------------------------------------------
(Unaudited) 1996
-------------------------------------------------------------------------------------------------
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 ... $ 9.48 $ 9.46 $ 9.29 $ 9.48 $ 9.71 $ 9.70 $ 9.53 $ 9.71
------- ------- ------ ------- ------- ------ ------ --------
Investment Activities
Net investment income . 0.28 0.25 0.24 0.30 0.62 0.55 0.58 0.65
Net realized and
unrealized gains
from investments .... 0.04 0.04 0.03 0.04 (0.21) (0.22) (0.23) (0.21)
------- ------- ------ ------- ------- ------ ------ --------
Total from
Investment
Activities ........ 0.32 0.29 0.27 0.34 0.41 0.33 0.35 0.44
------- ------- ------ ------- ------- ------ ------ --------
Distributions
Net investment income . (0.29) (0.24) (0.24) (0.31) (0.62) (0.55) (0.58) (0.65)
In excess of net
investment income ... -- -- -- -- (0.01) -- -- (0.01)
Tax return of capital . -- -- -- -- (0.01) (0.02) -- (0.01)
------- ------- ------ ------- ------- ------ ------ --------
Total Distributions . (0.29) (0.24) (0.24) (0.31) (0.64) (0.57) (0.59) (0.67)
------- ------- ------ ------- ------- ------ ------ --------
Net Asset Value,
End of Period ......... $ 9.51 $ 9.51 $ 9.32 $ 9.51 $ 9.48 $ 9.46 $ 9.29 $ 9.48
======= ======= ====== ======= ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges) .............. 3.42%(c) 3.06%(c) 2.95%(c) 3.60%(c) 4.37% 3.43% 3.71% 4.65%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $20,346 $ 1,602 $ 15 $134,446 $14,390 $1,547 $ 11 $136,681
Ratio of expenses to
average net assets .... 1.09%(b) 1.84%(b) 1.84%(b) 0.84%(b) 1.09% 1.84% 1.82% 0.84%
Ratio of net investment
income to average net
assets ................ 5.87%(b) 5.13%(b) 5.12%(b) 6.14%(b) 6.09% 5.35% 5.34% 6.32%
Ratio of expenses to
average net assets*.... 1.33%(b) 2.08%(b) 2.07%(b) 1.08%(b) 1.33% 2.08% 2.02% 1.08%
Ratio of net investment
income to average net
assets*................ 5.63%(b) 4.89%(b) 4.89%(b) 5.90%(b) 5.85% 5.11% 5.14% 6.08%
Portfolio turnover (g)... 322.22% 322.22% 322.22% 322.22% 618.60% 618.60% 618.60% 618.60%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
- ----
124
- ----
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Limited Maturity Bond Fund, continued
-----------------------------------------------------------------------------------------------------------
Year ended June 30,
-----------------------------------------------------------------------------------------------------------
1995 1994 1993 (a)
--------------------------------------------- ---------------------------------- --------------------------
Investor Investor Investor Investor Investor Investor
A B C(e) Institutional A B(d) Institutional A Institutional
-------- -------- -------- ------------ -------- -------- ------------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period . $ 9.57 $ 9.56 $ 9.35 $ 9.57 $ 10.18 $ 9.99 $ 10.18 $ 10.25 $ 10.25
------ ------ ------- -------- ------- ------ -------- ------- --------
Investment Activities
Net investment
income ............ 0.56 0.49 0.20 0.58 0.62 0.23 0.64 0.65 0.65
Net realized and
unrealized gains
(losses) from
investments ....... 0.13 0.12 0.17 0.13 (0.58) (0.44) (0.59) 0.13 0.13
------ ------ ------- -------- ------- ------ -------- ------- --------
Total from
Investment
Activities ...... 0.69 0.61 0.37 0.71 0.04 (0.21) 0.05 0.78 0.78
------ ------ ------- -------- ------- ------ -------- ------- --------
Distributions
Net investment
income ............ (0.55) (0.47) (0.19) (0.57) (0.61) (0.22) (0.62) (0.69) (0.69)
Net realized gains .. -- -- -- -- -- -- -- (0.16) (0.16)
In excess of net
realized gains .... -- -- -- -- (0.04) -- (0.04) -- --
------ ------ ------- -------- ------- ------ -------- ------- --------
Total
Distributions ... (0.55) (0.47) (0.19) (0.57) (0.65) (0.22) (0.66) (0.85) (0.85)
------ ------ ------- -------- ------- ------ -------- ------- --------
Net Asset Value,
End of Period ....... $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.57 $ 10.18 $ 10.18
====== ====== ======= ======== ======= ====== ======== ======= ========
Total Return (excludes
sales and redemption 7.53% 6.68% 3.58%(e) 7.76% 0.32% (2.09)% 0.43% 7.96% 7.98%
charges) ............
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $18,930 $ 892 -- $141,781 $24,907 $ 629 $156,678 $18,060 $141,706
Ratio of expenses to
average net assets .. 1.05% 1.85% 1.18%(b) 0.84% 0.86% 1.78%(b) 0.76% 0.75% 0.72%
Ratio of net
investment income to
average net assets .. 5.89% 5.14% 5.61%(b) 6.11% 6.22% 5.36%(b) 6.32% 6.41% 6.45%
Ratio of expenses to
average net assets* . 1.36% 2.36% 1.18%(b) 1.11% 1.30% 2.33%(b) 1.05% 1.08% 1.01%
Ratio of net
investment income to
average net assets* . 5.58% 4.62% 5.61%(b) 5.84% 5.78% 4.81%(b) 6.03% 6.08% 6.16%
Portfolio turnover (f). 397.97% 397.97% 397.97% 397.97% 353.28% 353.28% 353.28% 123.10% 123.10%
</TABLE>
See notes to financial statements.
125
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
-------------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -----------------------------------------------------
(Unaudited) 1996
-------------------------------------------------------------------------------------------------------
Investor Investor Investor Investor Investor Investor
A B C Institutional A B C Institutional
---------- -------- -------- ------------- -------- -------- -------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ... $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $ 9.93
------- ------- ------ ------- ------- ------ ------ --------
Investment Activities
Net investment income . 0.27 0.22 0.23 0.27 0.60 0.53 0.53 0.62
Net realized and
unrealized gains
from investments .... 0.08 0.08 0.07 0.08 (0.25) (0.24) (0.25) (0.24)
------- ------- ------ ------- ------- ------ ------ --------
Total from
Investment
Activities ........ 0.35 0.30 0.30 0.35 0.35 0.29 0.28 0.38
------- ------- ------ ------- ------- ------ ------ --------
Distributions
Net investment income . (0.30) (0.24) (0.25) (0.31) (0.58) (0.51) (0.52) (0.60)
------- ------- ------ ------- ------- ------ ------ --------
Total Distributions . (0.30) (0.24) (0.25) (0.31) (0.58) (0.51) (0.52) (0.60)
------- ------- ------ ------- ------- ------ ------ --------
Net Asset Value,
End of Period ......... $ 9.75 $ 9.73 $ 9.57 $ 9.75 $ 9.70 $ 9.67 $ 9.52 $ 9.71
======= ======= ====== ======= ======= ====== ====== ========
Total Return (excludes
sales and redemption 3.63%(c) 3.16%(c) 3.16%(c) 3.71%(c) 3.69% 2.93% 2.86% 3.95%
charges) ..............
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $20,616 $ 2,036 $ 162 $206,739 $22,954 $1,843 $ 80 $225,313
Ratio of expenses to
average net assets .... 1.22%(b) 1.97%(b) 1.97%(b) 0.97%(b) 1.21% 1.96% 1.96% 0.96%
Ratio of net investment
income to average net
assets ................ 5.36%(b) 4.61%(b) 4.61%(b) 5.61%(b) 5.51% 4.78% 4.83% 5.76%
Ratio of expenses to
average net assets*.... 1.31%(b) 2.08%(b) 2.09%(b) 1.06%(b) 1.30% 2.05% 2.05% 1.05%
Ratio of net investment
income to average net
assets*................ 5.27%(b) 4.50%(b) 4.49%(b) 5.52%(b) 5.42% 4.69% 4.74% 5.67%
Portfolio turnover (g)... 746.93% 746.93% 746.93% 746.93% 916.39% 916.39% 916.39% 916.39%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
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,
----------------------------------------------------------------------------------------------------
1995 1994 1993 (a)
------------------------------------------ --------------------------------- -----------------------
Investor Investor Investor Investor Investor Investor
A B C(e) Institutional A B(d) Institutional A Institutional
------- -------- -------- ------------- -------- -------- ------------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period . $ 9.62 $ 9.60 $ 9.42 $ 9.62 $ 10.53 $ 10.14 $ 10.53 $ 10.42 $ 10.42
------- ------- ------- --------- ------- ------- --------- ------- ---------
Investment Activities
Net investment
income ............ 0.50 0.43 0.18 0.52 0.59 0.21 0.60 0.68 0.68
Net realized and
unrealized gains
(losses) from
investments ....... 0.31 0.30 0.33 0.31 (0.66) (0.54) (0.66) 0.21 0.22
------- ------- ------- --------- ------- ------- --------- ------- ---------
Total from
Investment
Activities ...... 0.81 0.73 0.51 0.83 (0.07) (0.33) (0.06) 0.89 0.90
------- ------- ------- --------- ------- ------- --------- ------- ---------
Distributions
Net investment
income ............ (0.50) (0.44) (0.17) (0.52) (0.59) (0.21) (0.60) (0.73) (0.73)
Net realized gains .. -- -- -- -- -- -- -- (0.05) (0.06)
In excess of net
realized gains
(losses)........... -- -- -- -- (0.25) -- (0.25) -- --
------- ------- ------- --------- ------- ------- --------- ------- ---------
Total
Distributions ... (0.50) (0.44) (0.17) (0.52) (0.84) (0.21) (0.85) (0.78) (0.79)
------- ------- ------- --------- ------- ------- --------- ------- ---------
Net Asset Value,
End of Period ....... $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.62 $ 10.53 $ 10.53
======= ======= ======= ========= ======= ======= ========= ======= =========
Total Return (excludes
sales and redemption
% charges) ........... 8.69% 7.84% 5.21%(e) 9.02% (0.90)% (3.31)% (0.80)% 8.92% 8.94%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $27,521 $ 977 $ 9 $ 249,169 $36,106 $ 531 $ 281,232 $37,055 $ 272,607
Ratio of expenses to
average net assets .. 1.25% 2.06% 2.09%(b) 1.04% 1.00% 1.92%(b) 0.90% 0.90% 0.87%
Ratio of net
investment income to
average net assets .. 5.22% 4.41% 4.24%(b) 5.43% 5.80% 4.80%(b) 5.90% 6.51% 6.54%
Ratio of expenses to
average net assets* . 1.41% 2.42% 2.36%(b) 1.16% 1.29% 2.32%(b) 1.04% 1.08% 1.01%
Ratio of net
investment income to
average net assets* . 5.07% 4.05% 3.98%(b) 5.31% 5.51% 4.41%(b) 5.76% 6.33% 6.40%
Portfolio turnover (f). 549.93% 549.13% 549.13% 549.13% 546.06% 546.06% 546.06% 225.90% 225.90%
</TABLE>
See notes to financial statements.
127
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
U.S. Government Income Fund
----------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -------------------------------------------------
(Unaudited) 1996
------------------------------------------------- -------------------------------------------------
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 ... $ 9.25 $ 9.21 $ 9.19 $ 9.25 $ 9.42 $ 9.39 $ 9.36 $ 9.42
------- ------- ------ ------- ------- ------ ------ --------
Investment Activities
Net investment income . 0.36 0.32 0.31 0.35 0.73 0.66 0.66 0.75
Net realized and
unrealized gains
(losses) from
investments ......... -- 0.01 0.01 0.01 (0.17) (0.18) (0.17) (0.17)
------- ------- ------ ------- ------- ------ ------ --------
Total from
Investment
Activities ........ 0.36 0.33 0.32 0.36 0.56 0.48 0.49 0.58
------- ------- ------ ------- ------- ------ ------ --------
Distributions
Net investment income . (0.35) (0.30) (0.30) (0.35) (0.65) (0.59) (0.66) (0.67)
Tax return of capital . -- -- -- -- (0.08) (0.07) -- (0.08)
------- ------- ------ ------- ------- ------ ------ --------
Total Distributions . (0.35) (0.30) (0.30) (0.35) (0.73) (0.66) (0.66) (0.75)
------- ------- ------ ------- ------- ------ ------ --------
Net Asset Value,
End of Period ......... $ 9.26 $ 9.24 $ 9.21 $ 9.26 $ 9.25 $ 9.21 $ 9.19 $ 9.25
======= ======= ====== ======= ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges) .............. 4.06%(c) 3.66%(c) 3.68%(c) 3.98%(c) 5.97% 5.22% 5.25% 6.34%
Ratios/Supplementary Data:
Net Assets at end of
period (000) .......... $55,461 $22,657 $ 74 $136,026 $52,250 $19,556 $ 70 $130,615
Ratio of expenses to
average net assets .... 1.02%(b) 1.77%(b) 1.77%(b) 0.77%(b) 1.01% 1.76% 1.76% 0.76%
Ratio of net investment
income to average net
assets ................ 7.61%(b) 6.86%(b) 6.86%(b) 7.86%(b) 7.70% 6.92% 6.92% 7.94%
Ratio of expenses to
average net assets*.... 1.36%(b) 2.13%(b) 2.10%(b) 1.11%(b) 1.35% 2.10% 2.10% 1.10%
Ratio of net investment
income to average net
assets*................ 7.27%(b) 6.49%(b) 6.53%(b) 7.52%(b) 7.36% 6.58% 6.58% 7.60%
Portfolio turnover (h)... 529.43% 529.43% 529.43% 529.43% 348.01% 348.01% 348.01% 348.01%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) 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.
128
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
U.S. Government Income Fund, continued
-------------------------------------------------------------------------------------------------
Year ended June 30,
-------------------------------------------------------------------------------------------------
1995 1994
------------------------------------------------------ ----------------------------------------
Investor A Investor B Investor C(e) Institutional Investor A Investor B Institutional
---------- ---------- ------------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .......... $ 9.41 $ 9.38 $ 9.12 $ 9.41 $ 10.04 $ 9.88 $ 10.04
------- ------ ------- ------- ------- ------- -------
Investment Activities
Net investment income ........ 0.75 0.68 0.28 0.76 0.74 0.28 0.74
Net realized and unrealized
gains (losses) from
investments ................ -- 0.01 0.24 0.01 (0.64) (0.50) (0.63)
------- ------ ------- ------- ------- ------- -------
Total from Investment
Activities ............... 0.75 0.69 0.52 0.77 0.10 (0.22) 0.11
------- ------ ------- ------- ------- ------- -------
Distributions
Net investment income ........ (0.66) (0.61) (0.25) (0.68) (0.72) (0.27) (0.73)
Tax return of capital ........ (0.08) (0.07) (0.03) (0.08) (0.01) (0.01) (0.01)
------- ------ ------- ------- ------- ------- -------
Total Distributions ........ (0.74) (0.68) (0.28) (0.76) (0.73) (0.28) (0.74)
------- ------ ------- ------- ------- ------- -------
Net Asset Value,
End of Period ................ $ 9.42 $ 9.39 $ 9.36 $ 9.42 $ 9.41 $ 9.38 $ 9.41
======= ====== ======= ======= ======= ======= =======
Total Return (excludes sales
and redemption charges) ...... 8.46% 7.71% 5.26%(g) 8.70% 0.94% (2.26)% 1.04%
Ratios/Supplementary Data:
Net Assets at end of period
(000) ........................ $50,931 $8,478 $ 29 $110,190 $54,027 $ 2,787 $101,506
Ratio of expenses to average
net assets ................... 1.04% 1.83% 2.88%(b) 0.83% 0.82% 1.77%(b) 0.72%
Ratio of net investment income
to average net assets ........ 8.03% 7.28% 11.54%(b) 8.25% 7.42% 6.72%(b) 7.51%
Ratio of expenses to average net
assets* ...................... 1.44% 2.44% 2.88%(b) 1.19% 1.36% 2.42%(b) 1.11%
Ratio of net investment income
to average net assets* ....... 7.63% 6.67% 11.54%(b) 7.89% 6.87% 6.08%(b) 7.12%
Portfolio turnover (g) ......... 114.71% 114.71% 114.71% 114.71% 102.24% 102.24% 102.24%
</TABLE>
See notes to financial statements.
129
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Financial Highlights
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Bond Fund
------------------------------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 -------------------------------------------------
(Unaudited) 1996
------------------------------------------------- -------------------------------------------------
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..... $ 9.51 $ 9.51 $ 9.47 $ 9.56 $ 9.67 $ 9.68 $ 9.64 $ 9.72
------- ------- ------ ------- -------- -------- ------- --------
Investment Activities
Net investment
income................ 0.28 0.25 0.24 0.30 0.57 0.50 0.50 0.59
Net realized and
unrealized gains
(losses) from
investments........... 0.17 0.17 0.18 0.17 (0.16) (0.17) (0.17) (0.16)
------- ------- ------ ------- -------- -------- ------- --------
Total from
Investment
Activities.......... 0.45 0.42 0.42 0.47 0.41 0.33 0.33 0.43
------- ------- ------ ------- -------- -------- ------- --------
Distributions
Net investment
income................ (0.30) (0.25) (0.25) (0.32) (0.57) (0.50) (0.50) (0.59)
------- ------- ------ ------- -------- -------- ------- --------
Total
Distributions....... (0.30) (0.25) (0.25) (0.32) (0.57) (0.50) (0.50) (0.59)
------- ------- ------ ------- -------- -------- ------- --------
Net Asset Value,
End of Period........... $ 9.66 $ 9.68 $ 9.64 $ 9.71 $ 9.51 $ 9.51 $ 9.47 $ 9.56
======= ======= ====== ======= ======== ======== ======= ========
Total Return
(excludes sales and
redemption charges)..... 4.79%(c) 4.43%(c) 4.47%(c) 4.96%(c) 4.27% 3.46% 3.50% 4.49%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $20,292 $ 5,188 $ 365 $543,433 $ 20,175 $ 4,426 $ 210 $549,336
Ratio of expenses to
average net assets...... 1.18%(b) 1.93%(b) 1.93%(b) 0.93%(b) 1.19% 1.94% 1.91% 0.94%
Ratio of net
investment income
to average net
assets.................. 5.78%(b) 5.03%(b) 5.03%(b) 6.03%(b) 5.71% 4.97% 5.00% 5.96%
Ratio of expenses to
average net assets*..... 1.27%(b) 2.02%(b) 2.02%(b) 1.02%(b) 1.28% 2.03% 2.03% 1.03%
Ratio of net
investment income
to average net
assets*................. 5.69%(b) 4.94%(b) 4.94%(b) 5.94%(b) 5.62% 4.88% 4.88% 5.87%
Portfolio turnover (g).... 632.93% 632.93% 632.93% 632.93% 1189.27% 1189.27% 1189.27% 1189.27%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
130
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Bond Fund, continued
------------------------------------------------------------------------------------------------------
Year ended June 30,
------------------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------------- -------------------------------------------
Investor A Investor B Investor C (e) Institutional Investor A Investor B (d) Institutional
---------- ---------- -------------- ------------- ---------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period .......... $ 9.30 $ 9.26 $ 9.02 $ 9.29 $ 10.54 $ 9.95 $ 10.53
------- ------- ------- ------- ------- ------- -------
Investment
Activities
Net investment
income ........ 0.58 0.52 0.22 0.61 0.59 0.22 0.60
Net realized
and unrealized
gains (losses)
from
investments ... 0.38 0.42 0.62 0.43 (0.72) (0.70) (0.72)
------- ------- ------- ------- ------- ------ -------
Total from
Investment
Activities .. 0.96 0.94 0.84 1.04 (0.13) (0.48) (0.12)
------- ------- ------- ------- ------- ------ -------
Distributions
Net investment
income ........ (0.58) (0.52) (0.22) (0.61) (0.57) (0.21) (0.58)
Net realized
gains ......... -- -- -- -- -- -- --
In excess of net
realized gains. (0.01) -- -- -- (0.54) -- (0.54)
------- ------- ------- ------- ------- ------- -------
Total
Distributions (0.59) (0.52) (0.22) (0.61) (1.11) (0.21) (1.12)
------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period ... $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.29
======= ======= ======= ======= ======= ======= =======
Total Return
(excludes sales
and redemption
charges) ........ 10.85% 10.62% 8.41%(e) 11.78% (1.62)% (4.84)% (1.52)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000) . $17,572 $ 1,330 $ 28 $509,189 $18,391 $ 485 $469,903
Ratio of
expenses to
average net
assets .......... 1.24% 2.03% 1.99%(b) 1.02% 0.98% 1.89%(b) 0.88%
Ratio of net
investment
income to
average net
assets .......... 6.32% 5.54% 5.62%(b) 6.54% 5.86% 5.34%(b) 5.97%
Ratio of expenses
to average net
assets* ......... 1.39% 2.39% 2.26%(b) 1.14% 1.27% 2.29%(b) 1.02%
Ratio of net
investment
income to
average net
assets* ......... 6.17% 5.18% 5.36%(b) 6.42% 5.57% 4.94%(b) 5.83%
Portfolio turnover
(f) ............. 1010.64% 1010.64% 1010.64% 1010.64% 893.27% 893.27% 893.27%
<CAPTION>
Bond Fund, continued
--------------------------
Year ended June 30,
--------------------------
1993 (a)
--------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period .......... $ 10.54 $ 10.54
------- --------
Investment
Activities
Net investment
income ........ 0.71 0.71
Net realized
and unrealized
gains (losses)
from
investments ... 0.47 0.46
------ -------
Total from
Investment
Activities .. 1.18 1.17
------ -------
Distributions
Net investment
income ........ (0.73) (0.73)
Net realized
gains ......... (0.45) (0.45)
In excess of net
realized gains. -- --
------- --------
Total
Distributions (1.18) (1.18)
------- --------
Net Asset Value,
End of Period ... $ 10.54 $ 10.53
======= ========
Total Return
(excludes sales
and redemption
charges) ........ 11.93% 11.84%
Ratios/Supplementary
Data:
Net Assets at end
of period (000) . $18,562 $442,291
Ratio of
expenses to
average net
assets .......... 0.89% 0.87%
Ratio of net
investment
income to
average net
assets .......... 6.47% 6.50%
Ratio of expenses
to average net
assets* ......... 1.07% 1.01%
Ratio of net
investment
income to
average net
assets* ......... 6.29% 6.36%
Portfolio turnover
(f) ............. 443.98% 443.98%
</TABLE>
See notes to financial statements.
131
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Municipal Bond Fund
--------------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 ---------------------------------------
(Unaudited) 1996
-------------------------------------- ---------------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period .......................... $10.43 $10.39 $ 10.43 $10.39 $10.36 $ 10.39
------ ------ ------- ------ ------ -------
Investment Activities
Net investment income ........................ 0.20 0.17 0.21 0.41 0.33 0.43
Net realized and unrealized gains from
investments ................................ 0.16 0.16 0.17 0.03 0.03 0.04
------ ------ ------- ------- ------ -------
Total from Investment Activities ........... 0.36 0.33 0.38 0.44 0.36 0.47
------ ------ ------- ------- ------ -------
Distributions
Net investment income ........................ (0.20) (0.16) (0.22) (0.40) (0.33) (0.43)
Net realized gains ........................... (0.05) (0.05) (0.05) -- -- --
------ ------ ------- ------- ------ -------
Total Distributions ........................ (0.25) (0.21) (0.27) (0.40) (0.33) (0.43)
------ ------ ------- ------- ------ -------
Net Asset Value,
End of Period ................................ $10.54 $10.51 $ 10.54 $10.43 $10.39 $ 10.43
====== ====== ======= ======= ====== =======
Total Return (excludes sales and redemption
charges) ..................................... 3.53%(c) 3.17%(c) 3.71%(c) 4.29% 3.48% 4.55%
Ratios/Supplementary Data:
Net Assets at end of period (000) .............. $9,083 $ 993 $131,903 $7,835 $ 735 $132,527
Ratio of expenses to average net assets ........ 1.05%(b) 1.80%(b) 0.80%(b) 1.05% 1.80% 0.80%
Ratio of net investment income to average net
assets ....................................... 3.84%(b) 3.10%(b) 4.09%(b) 3.85% 3.11% 4.10%
Ratio of expenses to average net assets*........ 1.34%(b) 2.09%(b) 1.09%(b) 1.34% 2.09% 1.09%
Ratio of net investment income to average net
assets*....................................... 3.55%(b) 2.81%(b) 3.80%(b) 3.56% 2.82% 3.81%
Portfolio turnover (h).......................... 22.40% 22.40% 22.40% 47.46% 47.46% 47.46%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) There was only one share outstanding for the Investor C shares at June 30,
1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
See notes to financial statements.
132
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Municipal Bond Fund, continued
----------------------------------------------------------------------------------------------------------
Year ended June 30,
----------------------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C(e)(g) Institutional Investor A Investor B(d) Institutional
---------- ---------- ---------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period . $ 10.29 $10.26 $ 9.88 $ 10.29 $10.92 $10.76 $ 10.92
------- ------ ------ ------- ------ ------ -------
Investment Activities
Net investment
income (loss)...... 0.41 0.33 (0.03) 0.46 0.40 0.13 0.41
Net realized and
unrealized gains
(losses) from
investments ....... 0.27 0.27 0.65 0.27 (0.31) (0.50) (0.31)
------- ------ ------ ------- ------ ------ -------
Total from
Investment
Activities ...... 0.68 0.60 0.62 0.73 0.09 (0.37) 0.10
------- ------ ------ ------- ------ ------ -------
Distributions
Net investment
income............. (0.41) (0.33) (0.14) (0.46) (0.39) (0.13) (0.40)
Net realized gains .. -- -- -- -- (0.21) -- (0.21)
In excess of net
realized gains
(losses)........... (0.17) (0.17) (0.16) (0.17) (0.12) -- (0.12)
------- ------ ------ ------- ------ ------ -------
Total
Distributions ... (0.58) (0.50) (0.30) (0.63) (0.72) (0.13) (0.73)
------- ------ ------ ------- ------ ------ -------
Net Asset Value,
End of Period ....... $ 10.39 $10.36 $10.20 $ 10.39 $10.29 $10.26 $ 10.29
======= ====== ====== ======= ====== ====== =======
Total Return (excludes
sales and redemption
charges) ............ 7.02% 6.17% 3.47%(f) 7.25% 0.71% (3.41)% 0.81%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $11,378 $ 447 -- $134,784 $13,123 $ 359 $147,687
Ratio of expenses to
average net assets .. 1.02% 1.80% 0.71%(b) 0.80% 0.87% 1.80%(b) 0.77%
Ratio of net
investment income
(loss) to average
net assets .......... 4.00% 3.22% (0.54)%(b) 4.21% 3.72% 2.88%(b) 3.83%
Ratio of expenses to
average net assets* . 1.33% 2.33% 0.71% (b) 1.08% 1.32% 2.37%(b) 1.06%
Ratio of net
investment income
(loss) to average
net assets* ......... 3.68% 2.68% (0.54)%(b) 3.93% 3.27% 2.31%(b) 3.53%
Portfolio turnover (g). 35.15% 35.15% 35.15% 35.15% 44.39% 44.39% 44.39%
<CAPTION>
Municipal Bond Fund, continued
-------------------------------
Year ended June 30,
-------------------------------
1993(a)
-------------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of Period . $ 10.58 $ 10.58
------- -------
Investment Activities
Net investment
income (loss)...... 0.49 0.49
Net realized and
unrealized gains
(losses) from
investments ....... 0.48 0.48
------- -------
Total from
Investment
Activities ...... 0.97 0.97
------- -------
Distributions
Net investment income (0.53) (0.53)
Net realized gains .. (0.10) (0.10)
In excess of net
realized gains
(losses)........... -- --
------- -------
Total
Distributions ... (0.63) (0.63)
------- -------
Net Asset Value,
End of Period ....... $ 10.92 $ 10.92
======= =======
Total Return (excludes
sales and redemption
charges) ............ 9.46% 9.48%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $ 9,333 $146,302
Ratio of expenses to
average net assets .. 0.76% 0.73%
Ratio of net
investment income
(loss) to average
net assets .......... 4.56% 4.61%
Ratio of expenses to
average net assets* . 1.09% 1.02%
Ratio of net
investment income
(loss) to average
net assets* ......... 4.23% 4.31%
Portfolio turnover (g). 67.26% 67.26%
</TABLE>
See notes to financial statements.
133
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
----------------------------------------------------------------------------
Six months ended Year ended June 30,
December 31, 1996 --------------------------------------
(Unaudited) 1996
----------------------------------------------------------------------------
Investor Investor Institutional Investor Investor Institutional
A B A B
---------- -------- ------------- -------- -------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period ....................... $ 10.76 $ 10.76 $ 10.77 $ 10.75 $ 10.75 $ 10.76
------- ------- --------- ------- ------- -------
Investment Activities
Net investment income ..................... 0.23 0.19 0.24 0.47 0.40 0.50
Net realized and unrealized gains from
investments ............................. 0.15 0.15 0.15 0.04 0.04 0.04
------- ------- --------- ------- ------- -------
Total from Investment Activities ........ 0.38 0.34 0.39 0.51 0.44 0.54
------- ------- --------- ------- ------- -------
Distributions
Net investment income ..................... (0.23) (0.18) (0.25) (0.47) (0.40) (0.50)
Net realized gains ........................ (0.04) (0.04) (0.04) (0.03) (0.03) (0.03)
------- ------- --------- ------- ------- -------
Total Distributions ..................... (0.27) (0.22) (0.29) (0.50) (0.43) (0.53)
------- ------- --------- ------- ------- -------
Net Asset Value,
End of Period ............................. $ 10.87 $ 10.88 $ 10.87 $ 10.76 $ 10.76 $ 10.77
======= ======= ========= ======= ======= =======
Total Return (excludes sales and redemption
charges) .................................. 3.56%(c) 3.13%(c) 3.65%(c) 4.87% 4.13% 5.12%
Ratios/Supplementary Data:
Net Assets at end of period (000) ........... $39,032 $ 3,574 $ 192,013 $36,681 $ 3,565 $185,191
Ratio of expenses to average net assets ..... 1.02%(b) 1.77%(b) 0.77%(b) 1.02% 1.77% 0.77%
Ratio of net investment income to average
net assets ................................ 4.22%(b) 3.47%(b) 4.47%(b) 4.32% 3.57% 4.57%
Ratio of expenses to average net assets*..... 1.31%(b) 2.06%(b) 1.06%(b) 1.31% 2.06% 1.06%
Ratio of net investment income to average 3.93%(b) 3.18%(b) 4.18%(b) 4.03% 3.28% 4.28%
net assets*................................
Portfolio turnover (h)....................... 4.34% 4.34% 4.34% 27.66% 27.66% 27.66%
</TABLE>
- -------------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net investment
income, expenses, and distributions for the period July 1, 1992 through
March 31, 1993 were allocated to each class of shares based upon the
relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B shares)
to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) There was only one share outstanding for the Investor C shares at June 30,
1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
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,
-----------------------------------------------------------------------------------------------------------
1995 1994 1993 (a)
------------------------------------------------ ---------------------------------- ----------------------
Investor Investor Investor Institutional Investor Investor Institutional Investor Institutional
A B C(e)(g) A B(d) A
---------- -------- -------- ------------- -------- -------- ------------ ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period . $ 10.53 $ 10.52 $ 10.11 $ 10.53 $ 10.97 $ 11.09 $ 10.97 $ 10.58 $ 10.58
------- ------- ------- ------- ------- ------- ------- ------- -------
Investment Activities
Net investment
income (loss)...... 0.48 0.40 (0.02) 0.50 0.47 0.16 0.48 0.50 0.50
Net realized and
unrealized gains
(losses) from
investments ....... 0.23 0.24 0.62 0.25 (0.36) (0.57) (0.36) 0.47 0.47
------- ------- ------- ------- ------- ------- ------- ------- -------
Total from
Investment
Activities ...... 0.71 0.64 0.60 0.75 0.11 (0.41) 0.12 0.97 0.97
------- ------- ------- ------- ------- ------- ------- ------- -------
Distributions
Net investment
income (loss)...... (0.48) (0.40) -- (0.50) (0.45) (0.16) (0.46) (0.54) (0.54)
Net realized gains .. (0.01) (0.01) (0.17) (0.02) (0.01) -- (0.01) (0.04) (0.04)
In excess of net
realized gains
(losses)........... -- -- -- -- (0.09) -- (0.09) -- --
------- ------- ------- ------- ------- ------- ------- ------- -------
Total
Distributions ... (0.49) (0.41) (0.17) (0.52) (0.55) (0.16) (0.56) (0.58) (0.58)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net Asset Value,
End of Period ....... $ 10.75 $ 10.75 $ 10.54 $ 10.76 $ 10.53 $ 10.52 $ 10.53 $ 10.97 $ 10.97
======= ======= ======= ======= ======= ======= ======= ======= =======
Total Return (excludes
sales and redemption
charges) ............ 6.99% 6.28% 3.39%(f) 7.33% 0.92% (3.69)% 1.02% 9.40% 9.42%
Ratios/Supplementary
Data:
Net Assets at end of
period (000) ........ $37,874 $2,270 -- $176,068 $42,204 $ 1,302 $181,051 $32,778 $165,414
Ratio of expenses to
average net assets .. 1.00% 1.78% 0.48%(b) 0.78% 0.85% 1.77%(b) 0.75% 0.78% 0.76%
Ratio of net
investment income
(loss) to average
net assets .......... 4.57% 3.80% (0.32)%(b) 4.79% 4.25% 3.51%(b) 4.35% 4.67% 4.70%
Ratio of expenses to
average net assets* . 1.32% 2.32% 0.48%(b) 1.07% 1.29% 2.32%(b) 1.04% 1.12% 1.05%
Ratio of net
investment income
(loss) to average
net assets* ......... 4.25% 3.25% (0.32)%(b) 4.50% 3.81% 2.97%(b) 4.06% 4.33% 4.41%
Portfolio turnover (g) 26.06% 26.06% 26.06% 26.06% 6.69% 6.69% 6.69% 35.81% 35.81%
</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/(R)/
at 1-800-451-8377
The Parkstone Mutual Funds
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