<PAGE>
[LOGO OF PARKSTONE
MUTUAL FUNDS APPEARS HERE]
[ARTWORK APPEARS HERE]
June 30, 1997
ANNUAL REPORT
<PAGE>
Table of Contents
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Portfolio Performance Discussion............................................ 6
Report of Independent Accountants........................................... 34
Statements of Assets and Liabilities........................................ 35
Statements of Operations.................................................... 40
Statements of Changes in Net Assets......................................... 45
Schedules of Portfolio Investments.......................................... 50
Notes to Financial Statements............................................... 109
Financial Highlights........................................................ 127
</TABLE>
1
<PAGE>
Message From Your Chairman
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Dear Shareholders:
We're pleased to report that the year ended June 30, 1997, was a period of
strong growth for the financial markets, and for the Parkstone Mutual Funds.
Over the course of the year, the Dow Jones Industrial Average gained over 2000
points. While bonds attracted less attention and generated less excitement than
stocks, they, too, posted positive returns for the period.
Much of this activity was fueled by investors who continue to invest in mutual
funds at record levels. During the first half of 1997 alone, net assets under
management in the Parkstone Funds grew by 6.3% from $6.1 billion to $6.6
billion.
SOMETHING TO THINK ABOUT . . .
To put it mildly, it's been a very dramatic and rewarding year for stock
investors. Some pundits think the market may go even higher in the year ahead--
projecting the Dow at 10,000 by the middle of 1998 and 18,000 by 2005. But
given the strength and length of the bull market, others point out that gravity
will probably prevail sometime in the very near future. The truth is, no one
knows exactly what the market will do in the year ahead. But, there are three
very practical steps you can take at this point to help protect your wealth,
and, more importantly, your health:
1) Determine your investment objective and time horizon. Are you saving for
a house, your children's education or your retirement? How much do you
think you will need? And when will you need it?
2) Honestly assess your tolerance for risk. When the stock market declined
about 10% earlier this year, many stocks declined much more, and many
portfolios, as reflected by mutual funds, declined 20% to 30%. What is your
risk tolerance? If you woke up one morning and found out your wealth had
decreased by one-third, would you get out of the stock market, or stay put
because you have a long-term investment horizon?
3) Diversify your portfolio. Risk is reduced when assets are spread across
a variety of markets, which is why most investment programs include stocks,
bonds and money market investments. The right mix for you is very unique.
Historically, the range for most individuals has been between 40% and 60%
in stock, with the remainder in fixed-income and money market securities.
In the long term, there is little doubt that equity markets will revert to
their long-term return of around 10% per year, not the 30% return that we've
seen the past two years. It may not happen tomorrow, but it will happen.
Therefore, moderation is one of the keys to success.
As the great speculator Bernard Baruch once said, "When I'm nervous, I sell
down to the sleeping point." Not bad advice! The trick is to balance your fear
and desire--and to determine what point you are comfortable staying in the
financial markets to achieve your long-term goals. In short, when you can get a
good night's sleep every night.
IN CLOSING . . .
In the pages that follow, you will find a detailed discussion of the
performance of each of the Parkstone Mutual Funds during the year ended June
30, 1997. You also will 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 needs now
and in the years ahead. As
2
<PAGE>
Message From Your Chairman, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
always, if you have any questions or require any assistance, please don't
hesitate to call us at 1-800-451-8377.
Sincerely,
/s/ John B. Rapp
John B. Rapp
Chairman
The Parkstone Group of Funds
July 25, 1997
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
The distributor for the Parkstone Mutual Funds is Bisys Fund Services. For more
complete information on any of the Parkstone Mutual Funds, including fees,
expenses and sales charges, please call 1-800-451-8377 for a free prospectus.
Please read the prospectus carefully before investing or sending money.
3
<PAGE>
Message From Your Investment Adviser
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Dear Shareholders:
After climbing relentlessly higher for two years, stocks took a dive in March
and April. Consensus opinion was that a substantial correction had begun. With
economic growth numbers so strong, the Federal Reserve had just raised interest
rates. Moreover, the expectation was that, somewhat like 1994, they would
continue to do so until the economy softened and, perhaps, to investors' way of
thinking, a recession ensued. But those glum feelings didn't last. Like a
phoenix rising from the ashes, the stock market went on to hit new all-time
record highs day after day throughout the second quarter of 1997.
In short, the market took a licking and kept right on ticking. Why? First and
foremost, after the 1/4% increase in March, the Federal Reserve reassessed its
position and has not moved since. This is most unusual for Alan Greenspan and
crew. But they have good reasons. Economic growth cooled from 5.9% in the first
quarter to a more moderate 2% to 3% in the second. News on the inflation front
is also very good--the core Consumer Price Index rate of inflation for the 12
months ending in May is now just 2.5%.
ABOUT AS GOOD AS IT GETS
Low inflation, declining interest rates, increasing corporate profits--why
shouldn't the stock market celebrate? Indeed, as things currently stand,
corporate profits have been substantially underestimated by the stock market.
Not only have companies failed to disappoint, they have, week after week,
surprised virtually everyone in the marketplace.
The bond market, too, has taken notice of strong corporate profits and the
essentially benign inflation environment. One year ago, 30-year Treasury bonds
were yielding 7.2%. Last week they yielded 6.63%. With the Federal deficit
estimated to have continued to shrink to a level of under $100 billion--in
fact, perhaps as low as $50 billion in the current fiscal year--there may be
room for long-term and short-term interest rates to decline further.
(Historically, business cycles do not stop of their own accord, but tend to be
subdued by higher interest rates induced by the Federal Reserve and/or by some
unforeseen external event such as war or other cataclysmic event.) As a result,
after several years of fluctuating in response to every rumor, statistic and
economic bulletin, the bond markets experienced a relatively tranquil first
half of the year.
CAN IT GET BETTER?
All right, profits look good, inflation looks good, and stock market prices
have never been better. In fact, they are somewhat overvalued, aren't they?
Yes, from a fundamental perspective, things are a little scary. Dividend yields
are too low. Price-to- earnings ratios are hitting historic highs--and you
would think that, at some point, they will have to return to more realistic
ranges. Ah, that's the key--you would think.
There are times in stock market cycles when the dominant force is market
psychology, and, at the moment, psychology looks great. But, beware; it can
shift quickly, or it can buoy a market for years. During the entire decade of
the Sixties, the S&P 500 traded at a price/earnings ratio of between 15 to 20
times earnings. The entire decade--not six days, six months, six years, but the
entire decade!
HOW HIGH IS TOO HIGH?
The common denominator between then and now is a low inflation rate. During the
early Sixties, as measured by the Consumer Price Index, inflation was 4.5%. By
the mid to late Sixties, it was 3% or less. The conclusion is, although the
stock market may be near the higher end of historic evaluations, it is not
unprecedented. With the current level of inflation and interest rates, this
valuation could continue for some time. Of course, there could be a
4
<PAGE>
Message From Your Investment Adviser
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
nasty 10% to 15% market correction at any time, but there won't be a calamity
unless sentiment shifts dramatically.
So how high could the market go? Some pundits think we've seen the high. Others
project the Dow at 10,000 by the middle of 1998, and 18,000 by 2005. The truth
of the matter is, no one really knows. But one thing we all do know is that
market sentiment can shift on a dime--for reasons big or very, very small.
Sincerely,
/s/ Richard A. Wolf
Richard A. Wolf, CFA
President and Chief Investment Officer
First of America Investment Corporation
July 25, 1997
5
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
SMALL CAPITALIZATION FUND*
Very simply, the year ended June 30, 1997, was a frustrating one for small-cap
growth investors. The market roared to record highs--but gains were
concentrated in a handful of the largest companies. And while all other sectors
of the market were left behind in the stampede, the small-cap sector was
trampled. Moreover, despite their fundamental strength and solid prospects,
small-cap growth stocks fared the worst, as the attention investors paid to the
sector focused on value-oriented companies.
Invested primarily in growth-oriented smallcap stocks, the Fund's performance
was impacted by this shift in market sentiment. For the year ended June 30,
1997, the Fund posted a total return of -4.53% (Investor A shares)+ versus a
return of 16.33% on the Russell 2000, which is heavily weighted in value-
oriented small-cap stocks.
LOOKING TOWARD THE FUTURE
Regardless of market sentiment, the prospects for the small-cap growth sector
are very bright indeed. Out of the market's spotlight for almost two years,
these companies have continued to plug away--many growing at rates as high as
35% a year. Their balance sheets are strong. Their long-term prospects are
solid. Yet many have seen their stock prices fall, and even plummet.
Consequently, valuations in the small-cap growth sector in comparison to the
large-caps, are now very, very cheap. Attractive opportunities abound in
industries across the market, from health care and technology to financial
services and entertainment companies. In the months ahead, as the economy slows
and investors' infatuation with large-cap issues fades, we expect investors
will realize this and return to the sector, seeking growth.
As of June 30, 1997, the top five holdings in the Fund's portfolio were Sanmina
Corp. (3.2% of the Fund's assets), Dura Pharmaceutical (3.1%), Omnicare, Inc.
(2.9%), Concord EFS, Inc. (2.6%) and Regal Cinemas (2.3%).++
- -------
* Small-cap funds typically carry additional risks since smaller companies
generally have 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 - 8.83% for the
period.
++ The portfolio's composition is subject to change.
6
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
SMALL CAPITALIZATION FUND
Average Annual Total Return
As of June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor A* -8.83% 23.48% 19.01%
- ------------------------------------------------
Institutional -4.39% 24.85% 19.77%
- ------------------------------------------------
</TABLE>
*Reflects 4.50% Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor A* Institutional Russel 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
6/97 45,231 47,791 31,308
- ---------------------------------------------------------------
</TABLE>
Average Annual Total Return
As of June 30, 1997
<TABLE>
<CAPTION>
- -------------------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------------------
<S> <C> <C>
Investor B** -9.12% 17.72%
- -------------------------------------------
</TABLE>
**Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor B** Russell 2000
- -------------------------------------------
<S> <C> <C>
2/94 10,000 10,000
6/94 8,382 9,071
6/95 12,155 10,892
6/96 18,390 13,498
6/97 17,431 15,701
- -------------------------------------------
</TABLE>
Average Annual Total Return
As of June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
<S> <C> <C> <C>
Investor C*** -5.08% 24.23% 19.42%
- ------------------------------------------------
</TABLE>
***Reflects Applicable Contingent Deferred
Sales Charge
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Investor C*** Russell 2000
- -------------------------------------------
<S> <C> <C>
10/88 10,000 10,000
6/89 11,560 11,512
6/90 14,957 11,862
6/91 13,946 12,008
6/92 15,752 13,753
6/93 22,962 17,324
6/94 22,927 18,086
6/95 33,100 21,716
6/96 49,092 26,913
6/97 46,598 31,308
- -------------------------------------------
</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 their original cost.
7
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
MID CAPITALIZATION FUND
While the stock market rocketed to record highs during the year ended June 30,
1997, the advance was a relatively narrow one. Investors clearly favored larger
capitalization stocks--and oftentimes, only the very biggest and best known of
those. Moreover, investor sentiment also shifted away from growth stocks to
value. As a result, many sound mid-cap and small-cap growth stocks were
overlooked--and left behind.
Even in this environment, however, the sheer quality of several of the Fund's
holdings won over investors. In the first half of '97 alone, Baan 1.9% of the
portfolio's assets), a company involved in enterprise resource planning
systems, soared 98.0%. McAfee rose 43%, and Tellabs climbed 48.0% over the same
period. Overall, however, it was a frustrating period as mid-cap and small-cap
companies labored in the shadow of the large-caps. For the year ended June 30,
1997, the Fund posted a return of 5.78% (Investor A shares)+ versus a return of
34.70% for the S&P 500, the industry benchmark.
OPPORTUNITIES ABOUND
Overlooked by investors as they stampeded to large-cap stocks over the past
year, we believe small- and mid-cap stocks are now offering investors very real
value. In fact, in comparison to the blue chips, they can even be considered
cheap. Obviously, there is the possibility that the larger stocks will
experience a correction in the coming months--which would bring these stocks
more in line with the rest of the market.
But there is an equally strong possibility that we will see small- and mid-cap
stocks start to catch up with larger stocks. Given the valuations of the blue
chips, it's only a matter of time before investors realize and move to
capitalize on many of the truly astounding bargains now available in other
sectors of the marketplace.
As of June 30, 1997, the top five holdings in the Fund's portfolio were
Healthsouth (3.6% of the Fund's assets), Service Corp. (3.2%), Hospitality
Franchise Systems (3.1%), McAfee Associates (2.9%) and Sun America (2.9%).++
- -------
+ The total return with the maximum 4.50% sales charge was 1.00% for the
period.
++ The portfolio's composition is subject to change.
8
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Average Annual Total Return
As of June 30, 1997
MID CAPITALIZATION FUND
<TABLE>
<CAPTION>
------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
------------------------------------------------------
<S> <C> <C> <C>
Investor A* 1.00% 14.10% 13.89%
Institutional 5.58% 15.23% 14.54%
------------------------------------------------------
</TABLE>
*Reflects 4.50% Sales Charge
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
DATE 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
6/97 $30,886 $32,450 $42,710
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------
Since
1 Year Inception
(10/31/88)
----------------------------------------------
<S> <C> <C>
Investor B** 1.21% 11.32%
----------------------------------------------
</TABLE>
**Reflects Applicable Contingent Deferred Sales Charge
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
DATE 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
6/97 $14,407 $16,619
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 5.17% 14.64% 14.20%
-------------------------------------------------------
</TABLE>
***Reflects Applicable Contingent Deferred Sales Charge
[GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
DATE 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
6/97 $31,621 $42,710
</TABLE>
The Fund's performance is 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 their original cost.
9
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
LARGE CAPITALIZATION FUND
Week after week during the year ended June 30, 1997, large-capitalization
stocks soared higher. But, throughout the period, investors' attention focused
tighter and tighter on the very biggest and most liquid of these stocks. As a
result, even within the large-cap sector, stocks beyond the golden circle of
the Nifty Fifty lagged the industry benchmark. Throughout the period, the Fund
held positions in many of the market's favorites--as well as stock in other,
very strong, large-cap companies. Consequently, like the performance of most of
its peers, the Fund's fell short of the S&P 500 but still posted a very
impressive return of 29.52% (Investor A shares)+, for the year ended June 30,
1997.
UP, DOWN OR SIDEWAYS?
Given the circumstances, we expect to approach the marketplace cautiously in
the months ahead. Clearly, at some point, valuations of the blue chips will
fall in line with the rest of the market. Of course, a correction is always
possible. But there is also the distinct possibility that these stocks will
hover at current levels in the coming months; investors will recognize the
value that other companies represent, and the rest of the market will catch up.
And, in fact, in recent weeks, we've begun to see some evidence that this is
beginning to happen.
With holdings across the large-cap sector, the Fund is well positioned for
either scenario. As a result, no major changes in the portfolio's holdings are
anticipated for the foreseeable future. As of June 30, 1997, the top five
holdings in the Fund were Fannie Mae (2.9% of the Fund's assets), First Data
Corp. (2.8%), United Technologies Corp. (2.8%), Microsoft (2.7%) and Procter &
Gamble (2.4%).++
- -------
+ The total return with the maximum 4.50% sales charge was 24.32% for the
period.
++ The portfolio's composition is subject to change.
10
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
LARGE CAPITALIZATION FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------
Since
1 Year Inception
(2/1/96)
----------------------------------------------
<S> <C> <C>
Investor A* 24.32% 23.50%
----------------------------------------------
Investor B** 23.62% 23.59%
----------------------------------------------
Investor C*** 28.82% 26.42%
----------------------------------------------
</TABLE>
* Reflects a 4.50% Sales Charge
** Reflects Applicable Contingent Deferred
Sales Charge
*** Reflects Applicable Contingent Deferred
Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Investor A* Investor B** Investor C*** S&P 500
- ------ ----------- ------------ ------------- -------
<S> <C> <C> <C> <C>
2/96 9,547 10,000 10,000 10,000
6/96 10,405 10,377 10,714 10,653
6/97 13,477 13,490 13,930 14,349
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
1 Year Since Inception
(12/28/95)
---------------------------------------------
<S> <C> <C>
Institutional 29.81% 28.78%
---------------------------------------------
</TABLE>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Institutional S&P 500
------ ------------- -------
<S> <C> <C>
12/95 10,000 10,000
6/96 11,286 11,032
6/97 14,650 15,202
</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 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 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 their original cost.
11
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
INTERNATIONAL DISCOVERY FUND*
Few markets worldwide could compete with the U.S. stock market as it continued
the longest and strongest bull run in its history. Nonetheless, the year ended
June 30, 1997, was a very profitable one for international investors. Moreover,
to the surprise of nearly everyone, the Japanese market proved to be the best
performing major markets in U.S. dollars in the second quarter of 1997. With
approximately 26% of its assets invested in Japan, the Fund benefited
handsomely from the rebound.
Investments in Continental Europe also made solid contributions to performance
as economic activity--helped by the low-interest-rate, low-inflationary
environment--continued to pick up. While smaller markets throughout the Pacific
Basin region produced mixed results, activity in any one market was not
dramatic enough to impact performance one way or another. Consequently, for the
year ended June 30, 1997, the Fund posted a return of 15.99% (Investor A
shares)+ versus its benchmark, the EAFE (Morgan Stanley Capital International
Europe, Australia and Far East) Index, which posted a return of 12.84% for the
same period.
PROSPECTS WORLDWIDE ARE BRIGHT
Overshadowed by the fantastic performance of the U.S. stock market, markets
worldwide have made solid progress over the past year. In Europe, the driving
force behind stocks has been the prospect of economic union. To be eligible to
join the union, countries have had to implement fiscal and monetary policies
that have led to a low-interest-rate, low-inflationary environment. Whether the
union will materialize or not is still problematic--nonetheless, the financial
markets on the Continent are beginning to experience some of the benefits of a
united Europe.
Also in the news during the period was the British handover of Hong Kong to
China. Clearly, this has created a good deal of uncertainty in the Pacific
Basin markets. But, the success of Hong Kong has not been lost on the Chinese
people, or on the Chinese government. We strongly believe that Hong Kong will
have a much greater influence on China than China does on Hong Kong. Early in
the next century we expect China to become one of the economic powerhouses of
the world--and to offer investors truly enormous growth potential.
As of June 30, 1997, the Fund was widely diversified, with 93 holdings in 29
different markets. Approximately 40% of the portfolio's assets were invested in
Continental Europe, 26% in Japan, 9% in the United Kingdom, 4% in Latin
America, 3% in Canada and 9% in other smaller markets around the world.
As of the same date, the Fund's top five holdings were Rohm (2.5% of the
portfolio's assets), Takeda Chemical (2.5%), Telebras-Spons (2.2%), TDK Corp.
(2.2%) and BIC (1.8%).++
- -------
* International investing involves increased risk and volatility.
+ The total return with the maximum 4.50% sales charge was 10.77% for the
period.
++ The portfolio's composition is subject to change.
12
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
INTERNATIONAL DISCOVERY FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
--------------------------------------------
Since
1 Year Inception
(12/29/92)
--------------------------------------------
<S> <C> <C>
Investor A* 10.77% 11.67%
--------------------------------------------
Institutional 16.34% 13.11%
--------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Date Investor A* Institutional Australia & Far East
- ------ ----------- ------------- ---------------------
<S> <C> <C> <C>
12/92 9,551 10,000 10,000
6/93 10,994 11,552 12,228
6/94 12,642 13,299 14,104
6/95 12,366 13,051 14,115
6/96 14,177 14,977 15,989
6/97 16,444 17,424 18,040
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 10.11% 4.28%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Date Investor B** Australia & Far East
------ ------------ ---------------------
<S> <C> <C>
2/94 10,000 10,000
6/94 8,981 9,971
6/95 8,728 9,979
6/96 9,989 11,304
6/97 11,535 12,755
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(12/29/92)
---------------------------------------------
<S> <C> <C>
Investor C*** 15.13% 12.78%
----------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Morgan Stanley Europe
Date Investor C*** Australia & Far East
------ ------------- ---------------------
<S> <C> <C>
12/92 10,000 10,000
6/93 11,452 12,228
6/94 13,299 14,104
6/95 13,146 14,115
6/96 14,937 15,989
6/97 17,197 18,041
</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 their original cost.
13
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUND JUNE 30, 1997
CONSERVATIVE ALLOCATION FUND
Introduced on December 30, 1996, the Fund is designed for conservative
investors with short-term time horizons seeking income as well as growth. As a
result, the portfolio was heavily weighted toward fixed-income securities
throughout the period. At the same time, approximately 25% of the Fund's assets
were invested in large-capitalization stocks, and these holdings made a solid
contribution to performance during the period.
The Fund's holdings in various fixed-income sectors also produced positive
results, but, in the end, was simply not enough to compete with the torrid
growth of large-cap stocks. Consequently, due to the portfolio's bias toward
bonds and diversification of its holdings in the stock market, performance fell
short of industry benchmarks. For the six months ending June 30, 1997, the Fund
produced a total return of 4.87% versus a return of 20.61% for the S&P 500 and
3.06% return for the Salomon Brothers Broad Index.
BEYOND LARGE-CAP STOCKS . . .
We feel, however, that caution was well warranted in the environment of the
period as the valuations of large-capitalization issues soared past all
previous records. Given current prices, a correction would not be completely
unexpected. But equally likely is the possibility that prices of other
securities will move higher and more in line with the market's leaders. And, in
fact, as the period drew to a close, signs of this happening were beginning to
appear. Consequently, with exposures in mid-cap stocks as well as a wide range
of fixed-income securities (which continue to produce solid results), we are
very optimistic about the prospects for the portfolio's holdings in the months
ahead.
FRAMEWORK FOR THE FUTURE
As of June 30, 1997, approximately 64% of the portfolio's assets were invested
in fixed-income securities, 30% in stocks and 6% in cash or cash equivalents.
The fixed-income portion of the portfolio was invested primarily in U.S.
Treasury securities. Corporate bonds and mortgage-backed securities were also
held. The average credit quality of these holdings was AAA, and the average
duration of the portfolio's fixed-income investments was 3.21 years.
As of the same date, approximately 64% of the portfolio was invested in fixed-
income securities, 25% in larger capitalization stocks, 5% in mid-cap stocks
and 6% in cash or cash equivalents. The top five equity holdings in the
portfolio were Hospitality Franchise Systems (1.5% of the Fund's assets), First
Data (0.9%), Fannie Mae (0.7%), Cisco Systems (0.7%) and Microsoft (0.6%).*
- -------
* The portfolio's composition is subject to change.
14
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
CONSERVATIVE ALLOCATION FUND
AGGREGATE TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
-----------------------------------------------------------
Since
Inception
(12/30/96)
-----------------------------------------------------------
<S> <C>
Institutional 4.87%
-----------------------------------------------------------
</TABLE>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Intermediate
Government/Corporate Salomon Brothers
Date Institutional S&P 500 Bond Index Broad Index
- ------ ------------- ------- -------------------- ----------------
<S> <C> <C> <C> <C>
12/96 10,000 10,000 10,000 10,000
1/97 9,865 10,621 10,039 10,039
2/97 9,865 10,707 10,058 10,050
3/97 9,865 10,262 9,989 9,948
4/97 10,486 10,874 10,107 10,090
5/97 10,486 11,542 10,190 10,185
6/97 10,486 12,057 10,283 10,307
</TABLE>
The Fund's performance is being compared to the Standard & Poor's 500 Index,
the Lehman Brothers Intermediate Government/Corporate Bondex Index and the
Salomon Brothers Broad Index, the S&P 500 Index represents the performance
of the US stock market as a whole, the Lehman Brothers Intermediate
Government/Corporate is representative of intermediate-term bonds, the Salomon
Brothers Index represents the performance of the overall bond market. These
indices are unmanaged and do not reflect the deduction of expenses associated
with a mutual fund, such as investment management and fund accounting fees.
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 then the original cost.
15
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
BALANCED ALLOCATION FUND
The market's infatuation with larger capitalization stocks during the year
ended June 30, 1997, impacted the performance of all widely diversified
portfolios, and this Fund was no exception. International, mid-cap and small-
cap stocks--regardless of fundamental strength--were left behind as investors
moved to large-cap companies en masse. In addition, while the fixed-income
portion of the portfolio produced solid returns for the period, it simply could
not compete with the results posted by the astounding gains of the stock
market.
Facing the same situation, other funds of this type substantially increased
exposures to stocks in general and to large-capitalization stocks in particular
during the period. Given our objective of increased returns while reducing
volatility over the long term, we increased our equity holdings slightly in
early spring but did not make major alterations to the allocation of the
portfolio. Consequently, the Fund lagged industry performance averages for
funds of this kind, posting a return of 11.61% (Investor A shares)+ for the
year ended June 30, 1997.
BALANCING RISKS AND REWARDS
Nonetheless, we feel our caution was well warranted. The downside risks of the
largest, most liquid stocks have increased hand-in-hand with their valuations
over the past year. On the other hand, being ignored over much of the past year
has increased the upside potential of those left behind--international, small-
and mid-cap stocks.
In recent weeks, there's been some evidence that the tide is beginning to turn,
and that the market is beginning to recognize the value in these sectors. In
the months ahead, we expect to see this trend accelerate--and the Fund is
positioned to benefit when it does. Nonetheless, we remain committed to our
balanced approach to the markets. History has shown that this is the best way
to reduce volatility and increase return over the long run.
As of June 30, 1997, 50% of the portfolio's assets were invested in stocks, 46%
in fixed-income securities and 4% in cash or cash equivalents. The fixed-income
portion of the portfolio was widely diversified with exposures in corporate
bonds and mortgage-related and asset-backed securities, as well as Treasury
securities. The top five holdings were Hospitality Franchise Systems (0.66%),
Omnicare (0.63%), Service Corp Int'l (0.60%), Peoplesoft (0.59%) and Cardinal
Health (0.58%). The average maturity of these holdings was 9.1 years.++
- -------
+ The total return with the maximum 4.50% sales charge was 6.59% for the
period.
++ The portfolio's composition is subject to change.
16
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
BALANCED ALLOCATION FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 6.59% 11.55% 10.17%
----------------------------------------------------------
Institutional 11.86% 12.75% 11.28%
----------------------------------------------------------
</TABLE>
* Reflects a 4.50% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor A* Institutional S&P 500 Broad Index
- ------ ----------- ------------- ------- ----------------
<S> <C> <C> <C> <C>
1/92 9,551 10,000 10,000 10,000
6/92 9,354 9,794 10,121 10,418
6/93 11,013 11,523 11,500 11,666
6/94 10,834 11,357 11,662 11,528
6/95 12,889 13,540 14,702 12,975
6/96 15,146 15,951 18,525 13,622
6/97 16,905 17,843 24,953 14,732
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 5.59% 9.72%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor B** S&P 500 Broad Index
------ ----------- ------- ----------------
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 8,820 9,344 9,947
6/95 10,434 11,780 10,689
6/96 12,344 14,843 11,222
6/97 13,714 17,902 12,136
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
---------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 10.90% 12.01% 10.61%
----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor C*** S&P 500 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
6/97 17,268 24,953 14,732
</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 their original cost.
17
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUND JUNE 30, 1997
AGGRESSIVE ALLOCATION FUND
Intended for long-term investors aggressively seeking capital appreciation, the
Fund was launched on December 30, 1996. Given the Fund's objective, the
portfolio's allocation was weighted heavily in favor of stocks over bonds and
cash. During the six months ended June 30, 1997, however, investors focused all
of their attention on large-capitalization issues--and simply overlooked all
other sectors. Consequently, with exposures across the market in the large-,
medium- and small-cap sectors, as well as a sizable position in international
stocks, the Fund's performance during the period lagged industry benchmarks.
For the six months ending June 30, 1997, the Fund produced a total return of
6.38% versus a return of 20.61% for the S&P 500 and 3.06% return for the
Salomon Brothers Broad Index.
BUYING LOW . . .
Given the circumstances, however, we are pleased with results to date.
Moreover, during the period, we were able to identify and capture many very
attractive opportunities that investors had overlooked and undervalued in the
headlong rush to large-cap stocks. And, as the period drew to a close, our
diversified approach to the marketplace began to pay off as the market's
infatuation with the large caps showed signs of wearing off. Given the current
valuations of larger capitalization stocks, we expect to see this trend
accelerate in the coming months. Consequently, we will seek out and identify
opportunities across the market in an effort to reduce the portfolio's
volatility and increase the potential for growth.
POSITIONED FOR GROWTH
As of June 30, 1997, 66% of the portfolio's assets were invested in domestic
and international stocks, 25% in fixed-income securities and 9% in cash or cash
equivalents. The stock portion of the portfolio was widely diversified with
holdings in large-, mid- and small-cap stocks. The top five equity holdings in
the portfolio were Hospitality Franchise Systems (0.9% of the Fund's assets),
Service Corp. Int'l. (0.9%), Omnicare Inc. (0.8%), Cardinal Health (0.8%) and
Peoplesoft (0.8%).
The fixed-income portion of the portfolio was widely diversified, with
exposures in U.S. Treasury and mortgage-backed securities and corporate bonds,
as well as asset-backed and agency securities. The average credit quality of
these holdings was AAA.*
- -------
* The portfolio's composition is subject to change.
18
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
AGGRESSIVE ALLOCATION FUND
AGGREGATE TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
--------------------------------------------------------
Since
Inception
(12/30/96)
--------------------------------------------------------
<S> <C>
Institutional 6.38%
--------------------------------------------------------
</TABLE>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Institutional S&P 500 Broad Index
- ------ ------------- ------- ----------------
<S> <C> <C> <C>
12/96 $10,000 $10,000 $10,000
10,000 10,621 10,039
10,000 10,707 10,050
3/97 9,565 10,262 9,948
9,565 10,874 10,090
9,565 11,542 10,185
6/97 10,638 12,057 10,307
</TABLE>
The Fund's performance is measured against the Standard & Poor's 500 Stock
Index and the Salomon Brothers Broad Index which are considered to be
representative of the stock and bond markets, respectively. They are unmanaged
and do not reflect the deduction of expenses associated with a mutual fund,
such as investment management and fund accounting fees. 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 JUNE 30, 1997
EQUITY INCOME FUND
The stocks that posted the most spectacular gains during the year ended June
30, 1997, were simply not the most spectacular of dividend payers. Focused on
stocks that provide investors with income as well as the possibility of capital
appreciation, the Fund lagged the industry benchmark, the S&P 500. Nonetheless,
the year was still a very rewarding one.
Heavily weighted in the pharmaceutical industry, the Fund benefited as these
stocks posted solid corporate earnings. Holdings in the financial industry also
made strong contributions to performance. And, while our positions in the
technology and utility sectors didn't keep up with others, they, too, generally
posted positive returns. As a result, for the year ended June 30, 1997, the
Fund produced a total return of 23.81% (Investor A shares)+, a number in line
with other funds of this type.
ONE STEP AHEAD . . .
We expect the next several months to be very interesting ones for stock
investors. With valuations of the Nifty Fifty at such lofty levels, a
correction could be in the offing. Equally likely is the possibility that other
sectors of the market will begin to catch up as investors capitalize on the
many opportunities that are now available.
Designed to help protect assets in down drafts and provide growth potential in
rising markets, the Fund is well positioned for either turn of events. Our
focus on income-producing stocks with solid track records should cushion the
blow of any sell-off. Should the market's sentiment turn to stocks beyond the
golden circle of the Nifty Fifty, the Fund is widely diversified with holdings
across the market in solid dividend payers with strong balance sheets. As a
result, we are optimistic about the Fund's prospects in the months ahead.
As of June 30, 1997, the top five holdings in the Fund's portfolio were Eli
Lilly Co. (4.8% of the Fund's assets), MBNA (4.4%), Bristol Myers Squibb
(3.9%), Emerson Electric Co. (3.7%) and United Technologies Corp. (3.2%).++
- -------
+ The total return with the maximum 4.50% sales charge was 18.21% for the
period.
++ The portfolio's composition is subject to change.
20
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
EQUITY INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 18.21% 13.37% 13.73%
----------------------------------------------------------
Institutional 23.80% 14.54% 14.41%
----------------------------------------------------------
</TABLE>
* Reflects 4.50% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date Investor A* Institutional S&P 500
- ------ ----------- ------------- -------
<S> <C> <C> <C>
10/88 9,551 10,000 10,000
6/89 11,172 11,697 11,673
6/90 12,777 13,378 13,599
6/91 13,828 14,477 14,628
6/92 15,565 16,296 16,590
6/93 18,165 19,022 18,851
6/94 17,870 18,731 19,116
6/95 19,714 20,708 24,100
6/96 24,653 25,947 30,366
6/97 30,522 32,123 40,903
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 17.96% 12.50%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date 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
6/97 14,936 19,994
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
---------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 22.86% 13.98% 14.09%
----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Date 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
6/97 31,352 40,903
</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 dedution 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.
21
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
THE FIXED INCOME FUNDS
The year ended June 30, 1997, was relatively quiet in the fixed-income markets.
Growth over the course of the period was stronger than anticipated, but
inflation pressures remained benign. Moreover, the Federal Reserve's move to
increase rates modestly in early spring quickly stamped out any sparks that
might have been threatening to ignite. Rates spurted higher briefly, then
gradually fell back as the economy showed signs of softening as the period drew
to a close.
Throughout the period, all sectors of the market performed well. As always,
however, some did better than others. Given the strength of corporate balance
sheets, corporate bonds posted solid gains. The mortgage-backed sector, too,
performed well as pre-payment concerns evaporated in the stable rate
environment.
Barring a major disruption in the economy, we expect the environment in the
fixed-income markets to continue to be relatively calm over the next several
months. While the rate of corporate profit growth may decline, balance sheets
are in the best shape they've been for years. News from markets outside the
United States is good, too. Finally, the market is now beginning to recognize
and adjust for the possibility that the Federal borrowing needs may decline if
the budget deficit does actually shrink in the months ahead, opening the door
for lower rates. And, with the surprise element taken out of the equation, the
result is likely to be simply a firmer market for government bonds in the
future.
THE PARKSTONE BOND FUND
While there were moves up and down along the way, interest rates ended very
close to where they began for the period ended June 30, 1997. Rather than
attempting to chase rates and call each turn, we focused on yield enhancement
over price appreciation. Also, the average maturity of the portfolio was
maintained at a level slightly under the industry average.
Consequently, the Fund had the flexibility to capitalize on opportunities to
enhance yield whenever they arose. In addition, the Fund was heavily weighted
in corporate securities throughout much of the period, and these securities
made a solid contribution to performance. As a result, for the year ended June
30, 1997, the Fund performed in line with its benchmark, the Salomon Brothers
Broad Index and produced a total return of 7.92% (Investor A shares).+
As of June 30, 1997, approximately 53% of the fund's assets were invested in
corporate bonds, 28% in mortgage-backed and asset-backed securities, 18% in
U.S. Treasuries, with the remainder invested in agency-backed securities. As of
the same date, the average credit quality of the portfolio was Aaa; the average
maturity, 11.4 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 3.57% for the
period.
++ The portfolio's composition is subject to change.
22
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
BOND FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
------------------------------------------------------
<S> <C> <C> <C>
Investor A* 3.57% 5.69% 7.37%
------------------------------------------------------
Institutional 8.20% 6.84% 8.04%
------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor A* Institutional Broad Index
- ---- ---------- ------------- ----------------
<S> <C> <C> <C>
10/88 9,597 10,000 10,000
6/89 10,213 10,642 10,801
6/90 10,922 11,381 11,635
6/91 11,883 12,382 12,896
6/92 13,483 14,050 14,722
6/93 15,092 15,714 16,485
6/94 14,847 15,474 16,290
6/95 16,459 17,297 18,334
6/96 17,161 18,075 19,249
6/97 18,521 19,557 20,818
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
------------------------------------------
Since
1 Year Inception
(2/4/94)
------------------------------------------
<S> <C> <C>
Investor B** 2.09% 3.85%
------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred
Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor B** Broad Index
---- ------------ ----------------
<S> <C> <C>
2/94 10,000 10,000
6/94 9,144 9,497
6/95 10,138 10,689
6/96 10,605 11,222
6/97 11,371 12,136
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
----------------------------------------------------
<S> <C> <C> <C>
Investor C*** 7.15% 5.78% 3.85%
----------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge
</TABLE>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
Date Investor C*** Broad Index
- ---- ------------- ----------------
<S> <C> <C>
10/88 10,000 10,000
6/89 10,542 10,801
6/90 11,381 11,635
6/91 12,382 12,896
6/92 14,050 14,722
6/93 15,713 16,485
6/94 15,478 16,290
6/95 16,780 18,334
6/96 17,368 19,249
6/97 18,610 20,818
</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 their original cost.
23
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
LIMITED MATURITY BOND FUND
There were few standout performers in the shorter end of the yield curve during
the year ended June 30, 1997. As rates moved up and down, each sector had a
moment in the sun. Higher rates decreased pre-payment jitters in the mortgage-
backed and asset-backed sectors. Corporate bonds, too, benefited as balance
sheets strengthened throughout the year. And, while Treasury securities
performed as they are expected to in a stable environment and failed to set
even the most conservative investor on fire, they too, produced positive
results.
Given the circumstances, we sought out opportunities to enhance yield whenever
and wherever they arose. In addition, in an effort to increase the Fund's
flexibility to do so, in the opening months of 1997, the duration of the Fund's
holdings was brought in line with industry averages. As a result, for the year
ended June 30, 1997, the Fund performed in line with its benchmark the Salomon
1-5 Year Investment-Grade Index, and posted a total return of 6.11% (Investor A
shares).+
As of June 30, 1997, approximately 41% of the Fund's assets were in corporate
bonds, 19% in asset-backed securities, 23% in U.S. Treasuries, 1% in U.S.
agency securities, and the remainder invested in cash and cash equivalents. As
of the same date, the average credit quality of the portfolio was Aaa; the
average maturity, 3.6 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 1.82% for the
period.
++ The portfolio's composition is subject to change.
24
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
LIMITED MATURITY BOND FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 1.82% 4.36% 6.24%
----------------------------------------------------------
Institutional 6.42% 5.41% 6.85%
----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-5 Year
Investment-Grade
Date Investor A* Institutional Broad Index
- ------ ----------- ------------- ----------------
<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
6/97 16,902 17,770 19,078
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 0.39% 3.11%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-5 Year
Investment-Grade
Date Investor B** Broad Index
------ ----------- ----------------
<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
6/97 11,100 11,970
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
---------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 5.26% 4.16% 6.12%
----------------------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-5 Year
Investment-Grade
Date Investor C*** Broad Index
------ ----------- ----------------
<S> <C> <C>
10/88 10,000 10,000
6/89 10,570 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 15,906 17,862
6/97 16,742 19,078
</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 their original cost.
25
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
As worries about the direction of the economy and interest rates dissipated
over the course of the year ended June 30, 1997, the government markets grew
quieter and quieter. Opportunities for price appreciation were few and far
between, and we focused our efforts on enhancing yield. In the environment
where interest rates were as unlikely to nose-dive as they were to start
spiraling higher, pre-payment risks were minimal.
Consequently, throughout the period, the Fund's exposure in mortgage-backed
securities gradually increased. And, due primarily to the strong performance of
these mortgage-backed securities, the portfolio produced a total return of
5.91% (Investor A shares)+ for the year ended June 30, 1997. With a maturity
structure slightly shorter than the industry average for other funds of this
kind, however, the Fund fell short of its industry average.
Nonetheless, the shorter maturity structure enables us to respond more rapidly
to changes in the marketplace. In recent weeks, as interest rates have drifted
downward, prepayment risk is reappearing. Consequently, we've begun to peel
back exposure in mortgage-backed securities slightly and to increase holdings
in Treasury securities. As of June 30, 1997, approximately 72% of the Fund's
assets were invested in U.S. Treasury securities, with the remainder invested
in agency-backed and mortgage-backed securities. As of the same date, the
average maturity of the Fund's holdings was 4.7 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 1.72% for the
period.
++ The portfolio's composition is subject to change.
26
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
-----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 1.72% 4.35% 6.32%
-----------------------------------------------------------
Institutional 6.11% 5.38% 6.93%
-----------------------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-10 Year
Date Investor A* Institutional Treasury Index
- ------ ----------- ------------- ----------------
<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
6/97 17,011 17,879 19,387
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------
Since
1 Year Inception
(2/4/94)
----------------------------------------
<S> <C> <C>
Investor B** 0.09% 2.83%
----------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
Salomon Brothers
1-10 Year
Date Investor B** Treasury Index
- ------ ------------ ----------------
<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
6/97 10,996 11,881
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
-----------------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------------------
<S> <C> <C> <C>
Investor C*** 5.03% 4.20% 6.24%
-----------------------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
Salomon Brothers
1-10 Year
Date Investor C*** Treasury Index
- ------ ------------- ----------------
<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
6/97 16,897 19,387
</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 that an investor's shares, when redeemed, may be worth
more or less than their original cost.
27
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. GOVERNMENT INCOME FUND
The Fund wasn't affected greatly by the rise and fall of interest rates during
the year ended June 30, 1997. Invested primarily in small government-assisted
mortgage loans 10 or more years old, and seemingly impervious to pre-payment
risk, it continued to offer investors a dependable yield and value.
Nevertheless, with securities across the spectrum offering investors much the
same in the environment of the period, the Fund's performance was strong but
not outstanding. For the year ended June 30, 1997, the Fund produced a total
return of 6.86% (Investor A Shares)+.
Designed to preserve capital, however, the Fund's performance in more volatile
markets in the past has been impressive. Consequently, throughout the year we
sought out opportunities to increase positions in these "super coupon"
mortgages. Each quarter, of course, many of these issues mature and expire.
Moreover, others in the marketplace realize just how attractive these
securities are. Consequently, throughout the year, they tended to be somewhat
more richly valued than other securities. Nonetheless, when the market grows
more volatile, we believe they will prove to be well worth the premium paid.
As of June 30, 1997, approximately 72% of the Fund's assets were invested in
mortgage-backed securities and commercial mortgage obligations, and 28% in U.S.
Treasury and agency securities. As of the same date, the duration of the Fund's
holdings was 4.7 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 2.54% for the
period.
++ The portfolio's composition is subject to change.
28
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. GOVERNMENT INCOME FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
--------------------------------------------
Since
1 Year Inception
(11/12/92)
--------------------------------------------
<S> <C> <C>
Investor A* 2.54% 4.99%
--------------------------------------------
Institutional 6.91% 6.10%
--------------------------------------------
</TABLE>
* Reflects 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-10 Years
Date Investor A* Institutional Treasury 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
6/97 12,535 13,159 13,746
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 1.11% 4.12%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-10 Years
Date Investor B** Treasury 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
6/97 11,472 11,881
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------
Since
1 Year Inception
(11/12/92)
---------------------------------------------
<S> <C> <C>
Investor C*** 6.07% 4.95%
----------------------------------------------
</TABLE>
*** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-10 Years
Date Investor C*** Treasury Index
------ ----------- ----------------
<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
6/97 12,511 13,746
</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.
29
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
THE MUNICIPAL BOND FUNDS
Valuing consistency above all, the municipal markets were somewhat jumpy as
investors anticipated an increase in interest rates throughout the year ended
June 30, 1997. Tight supply of securities--particularly high-end securities--
dampened volatility. As a result, while anxiety ran high at points, activity
never reached the fever pitch seen just two or three short years ago.
Nevertheless, during the period, we gradually shortened the duration of
holdings in the portfolio--moving from the longer end of the curve into the
intermediate range--in an effort to reduce volatility. Due to strong security
selection, the performance of the Funds suffered only slightly in the short
term as rates drifted lower throughout the spring. But taking a longer view, we
believe this move will provide our investors with much more consistent returns.
You'll also note that we have provided a comparison of each Fund's performance
to the Lehman Brothers Mutual Fund Intermediate Index. This index, we believe,
better reflects the intermediate nature of the Municipal Bond Fund and the
Michigan Municipal Bond Fund.
THE MUNICIPAL BOND FUND
In addition to tight supply in markets across the country, quality spreads
moved closer and closer throughout the year ended June 30, 1997. The result was
a firm market--where greater rewards did not necessarily follow taking on
greater risk. For the period, the Fund produced a total return of 5.47%
(Investor A shares)+ versus a return of 7.63% for the Lehman Brothers Municipal
Bond Index and 7.17% for the Lehman Brothers Mutual Fund Intermediate Index.
Supply is beginning to loosen up slightly in various markets around the
country, but there is little reason to believe that taxpayer resistance to
increased borrowing is going to disappear any time soon. As a result, we expect
the muni markets to remain firm for the foreseeable future.
As of June 30, 1997, over two-thirds of the Fund's assets were invested in
securities rated AAA. The Fund was widely diversified, with holdings in 32
states and no more than 11.7% of its assets invested in any one state. The
average maturity of the holdings in the portfolio was 8.32 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 1.30% for the
period.
++ The portfolio's composition is subject to change.
30
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
MUNICIPAL BOND FUND
VALUE OF $10,000 INVESTMENT
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
---------------------------------------------
<S> <C> <C> <C>
Investor A* 1.30% 4.50% 5.66%
---------------------------------------------
Institutional 5.89% 5.66% 6.28%
---------------------------------------------
</TABLE>
*Reflects 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Brothers
Lehman Brothers Mutual Fund
Date Investor A* Institutional Municipal Bond Index Intermdiate Index
- ---- ----------- ------------- -------------------- -----------------
<S> <C> <C> <C> <C>
10/88 9,597 10,000 10,000 10,000
6/89 10,127 10,552 10,672 10,672
6/90 10,590 11,035 11,398 11,398
6/91 11,385 11,863 12,424 12,424
6/92 12,422 12,944 13,888 13,888
6/93 13,597 14,171 15,548 15,548
6/94 13,694 14,286 15,579 15,579
6/95 14,656 15,322 16,945 16,945
6/96 15,285 16,019 18,106 17,238
6/97 16,123 16,962 19,605 18,553
</TABLE>
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
-------------------------------------
Since
1 Year Inception
(2/4/94)
-------------------------------------
<S> <C> <C>
Investor B** -0.19% 2.37%
-------------------------------------
</TABLE>
** Reflects Applicable Contingent
Deferred Sales Charge
<TABLE>
<CAPTION>
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
Lehman Brothers
Lehman Brothers Mutual Fund
Date Investor B** Municipal Bond Index Intermediate Index
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 9,277 9,450 9,450
6/95 9,870 10,279 10,279
6/96 10,322 10,983 10,457
6/97 10,830 11,892 11,255
</TABLE>
Until recently the Fund's performance was compared to the Lehman Brothers
Municipal Bond Index. However, the Fund's performance is now also being
compared to the Lehman Brothers Mutual Fund Intermediate Index, which better
reflects the Fund's current focus. The Lehman Brothers Intermediate Mutual Fund
Index consists of the Lehman Brothers Municipal Bond Index from 10/88 through
10/95. Thereafter, the data is from the Lehman Brothers Intermediate Mutual
Fund Index, which corresponds with the inception of the Index on 10/31/95.
These 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 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 investor's
shares, when redeemed, may be worth more or less than their original cost.
31
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
MICHIGAN MUNICIPAL BOND FUND
Supply in the Michigan market was particularly tight throughout much of the
year ended June 30, 1997. As a result, the market was extremely firm and at
times, somewhat liquid--which in turn made it difficult to capitalize on
changes in the environment. But, due to solid security selection, for the
period, the Fund fell only slightly short of industry averages, producing a
total return of 5.89% (Investor A shares)+ versus a return of 7.63% for the
Lehman Brothers Municipal Bond Index and 7.17% for the Lehman Brothers
Intermediate Index.
In the months ahead we expect to see the supply shortage ease a bit. Several
school districts now have issues in the works. In addition, the City of Detroit
is expected to issue a series of general obligation bonds. More liquidity in
the market should make it far easier to capitalize on opportunities that any
change in interest rates might create. 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 8.04 years.++
- -------
+ The total return with the maximum 4.00% sales charge was 1.64% for the
period.
++ The portfolio's composition is subject to change.
MICHIGAN MUNICIPAL BOND FUND
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
----------------------------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
----------------------------------------------------------
<S> <C> <C> <C>
Investor A* 1.64% 4.72% 5.71%
----------------------------------------------------------
Institutional 6.11% 5.76% 6.46%
----------------------------------------------------------
</TABLE>
* Reflects a 4.00% Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Shearson Lehman Brothers
3-15 Year Mutual Fund
Date Investor A* Institutional Municipal Index Intermediate Index
- ------ ----------- ------------- --------------- ------------------
<S> <C> <C> <C> <C>
7/90 9,597 10,000 10,000 10,000
6/91 10,247 10,677 10,884 10,884
6/92 11,244 11,716 12,065 12,065
6/93 12,301 12,820 13,338 13,338
6/94 12,414 12,951 13,487 13,487
6/95 13,282 13,900 14,608 14,608
6/96 13,928 14,611 15,499 14,861
6/97 14,749 15,503 16,684 15,995
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
---------------------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------------------
<S> <C> <C>
Investor B** 0.05% 2.57%
---------------------------------------------
</TABLE>
** Reflects Applicable Contingent Deferred Sales Charge
VALUE OF $10,000 INVESTMENT
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Shearson Lehman Brothers
3-15 Year Mutual Fund
Date Investor B** Municipal Index Intermediate Index
------ ----------- --------------- ------------------
<S> <C> <C> <C>
2/94 10,000 10,000 10,000
6/94 9,251 9,566 9,566
6/95 9,848 10,405 10,405
6/96 10,368 11,040 10,585
6/97 10,902 11,884 11,393
</TABLE>
Until recently the Fund's performance was compared to the Shearson 3-15 Year
Municipal Index. However, the Fund's performance is now also being compared to
the Lehman Brothers Mutual Fund Intermediate Index, which better reflects the
Fund's current focus. The Lehman Brothers Intermediate Mutual Fund Index
consists of the Shearson 3-15 Year Municipal Index from 10/88 through 10/95.
These indices are unmanaged and do not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees.
Thereafter, the data is from the Lehman Brothers Intermediate Mutual Fund
Index, which corresponds with the inception of the Index on 10/31/95. 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 investor's shares, when redeemed, may be worth more or less than their
original cost.
32
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
THE MONEY MARKET FUNDS*
Stronger than expected economic growth caused investors to keep a wary watch on
inflation numbers throughout the year ended June 30, 1997. But, contrary to
historical precedent, increased economic activity did not increase inflationary
pressures. Nevertheless, the Federal Reserve hiked interest rates 1/4% in the
first quarter of 1997. Whatever inflation anxiety lingered in the marketplace
was effectively doused. As a result, while some sectors of the market were more
active than others, the overall environment was relatively stable.
Clearly, much of the investors' apprehension regarding inflation has dissipated
in recent months as growth has weakened slightly. In fact, there is growing
sentiment in the marketplace for a lowering of rates. But Federal Reserve
action has always trailed rather than led the markets, so a dramatic change in
this direction seems somewhat unlikely in the very near term. Nonetheless, with
the economy softening and inflation anxieties disappearing, minus a major
change in the environment, rates may drift lower in the months ahead. The Funds
have been positioned with this outlook in mind.
. THE PRIME OBLIGATIONS FUND: As of June 30, 1997, approximately 90% of the
Fund's assets were invested in commercial paper, with the remainder invested in
overnight securities. The average maturity of the Fund's holdings was 56 days.+
. THE U.S. GOVERNMENT OBLIGATIONS FUND: As of June 30, 1997, the Fund's assets
were invested in overnight securities as well as short-term agency and Treasury
securities. The average maturity of the portfolio was 42 days.+
. THE TREASURY FUND: Approximately 81% of the Fund's assets were held in
repurchase agreements as of June 30, 1997, and the average maturity of the
portfolio was 30 days.+
. THE TAX-FREE FUND: As of June 30, 1997, the average maturity of assets in the
Fund's portfolio was 42 days.+
- -------
+ The portfolio's composition is subject to change.
++ The Fund's income may be subject to certain, state and local taxes, and
depending on your tax status, the federal alternative minimum tax.
* An investment in the Funds is neither insured not 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 asset value of $1.00 per share.
33
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
To the Shareholders and Trustees of
the Parkstone Group of Funds
We have audited the accompanying statements of assets and liabilities of the
Parkstone Group of Funds (comprising, respectively, the Prime Obligations Fund,
U.S. Government Obligations Fund, Tax-Free Fund, Treasury Fund, Small
Capitalization Fund, Mid Capitalization Fund (formerly the Equity Fund), Large
Capitalization Fund, International Discovery Fund, Limited Maturity Bond Fund,
Intermediate Government Obligations Fund, U.S. Government Income Fund, Bond
Fund, Municipal Bond Fund, Michigan Municipal Bond Fund, Conservative
Allocation Fund, Balanced Allocation Fund, Aggressive Allocation Fund, and
Equity Income Fund (formerly the High Income Equity Fund)), including the
schedules of portfolio investments, as of June 30, 1997, and the related
statements of operations, statements of changes in net assets, and the
financial highlights for each of the periods presented. These financial
statements and financial highlights are the responsibility of the Parkstone
Group of Funds' management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of June 30, 1997 by correspondence with the custodian and brokers or
other auditing procedures where confirmations from brokers were not received.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds comprising the Parkstone Group of Funds as of June 30,
1997, and the results of their operations and the changes in their net assets
and the financial highlights for the periods referred to above in conformity
with generally accepted accounting principles.
Coopers & Lybrand L.L.P.
Columbus, Ohio
August 25, 1997
34
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share
Amounts)
PRIME U.S. GOVERNMENT
OBLIGATIONS OBLIGATIONS TAX-FREE TREASURY
FUND FUND FUND FUND
----------- --------------- -------- --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value........... $846,026 $261,010 $156,861 $ 98,634
Repurchase agreements........... 36,560 166,896 -- 403,057
-------- -------- -------- --------
Total Investments (amortized
cost $882,586; $427,906;
$156,861; and $501,691,
respectively) 882,586 427,906 156,861 501,691
Interest and dividends
receivable..................... 564 1,318 1,168 738
Receivable for capital shares
issued......................... 29 -- 14 --
Prepaid expenses................ 9 -- -- 3
-------- -------- -------- --------
TOTAL ASSETS.................... 883,188 429,224 158,043 502,432
-------- -------- -------- --------
LIABILITIES:
Dividends payable............... 3,675 1,734 463 1,789
Payable for capital shares
redeemed....................... 6,689 -- 1,099 --
Payable to brokers for
investments purchased.......... -- 4,996 -- --
Accrued expenses and other
payables:
Investment advisory fees...... 313 153 60 155
Administration fees........... 65 32 12 19
12b-1 fees (Investor A)....... 16 17 4 12
Accounting fees............... 4 3 1 3
Transfer agent fees........... 1 1 6 4
Legal fees.................... 6 2 9 --
Audit fees.................... 17 6 10 3
Trustees' fees and expenses... -- 1 -- 1
Custodian fees................ 4 4 2 5
Other......................... 28 31 27 58
-------- -------- -------- --------
TOTAL LIABILITIES............... 10,818 6,980 1,693 2,049
-------- -------- -------- --------
NET ASSETS:
Paid-in capital................. 872,372 422,288 156,350 500,352
Accumulated undistributed
(distributions in excess of)
net investment income.......... (2) (36) -- --
Accumulated undistributed net
realized gains (losses) on
investment transactions........ -- (8) -- 31
-------- -------- -------- --------
NET ASSETS...................... $872,370 $422,244 $156,350 $500,383
======== ======== ======== ========
Net Assets
Investor A.................... $195,046 $212,082 $ 47,466 $176,006
Institutional................. 677,324 210,162 108,884 324,377
-------- -------- -------- --------
Total....................... $872,370 $422,244 $156,350 $500,383
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A.................... 195,043 212,086 47,469 175,996
Institutional................. 677,325 210,168 108,881 324,356
-------- -------- -------- --------
Total....................... 872,368 422,254 156,350 500,352
======== ======== ======== ========
Net asset value--offering and
redemption price
per share
Investor A.................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
Institutional................. $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
</TABLE>
See notes to financial statements.
35
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands except Per Share Amounts
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $516,448;
$413,671; $262,805 and
$357,018,
respectively).......... $782,947 $605,498 $348,911 $484,561
Repurchase agreements,
at cost................ 65,307 42,125 6,210 --
-------- -------- -------- --------
TOTAL INVESTMENTS....... 848,254 647,623 355,121 484,561
Cash.................... 1 1 1 474
Interest and dividends
receivable............. 19 110 284 732
Foreign currency (Cost
$0; $0; $0 and $91,
respectively).......... -- -- -- 91
Receivable from brokers
for investments sold... 6,276 5,408 -- 8,043
Receivable for capital
shares issued.......... 5,044 2,911 76 34
Prepaid expenses and
other assets........... 94 19 16 251
-------- -------- -------- --------
TOTAL ASSETS............ 859,688 656,072 355,498 494,186
-------- -------- -------- --------
LIABILITIES:
Payable to brokers for
investments purchased.. 5,295 6,458 -- 122
Payable for forward
currency contracts
sold................... -- -- -- 4,025
Payable for capital
shares redeemed........ 167 123 360 291
Accrued expenses and
other payables:
Investment advisory
fees.................. 699 545 249 489
Administration fees.... 68 53 30 40
12b-1 fees (Investor
A).................... 38 16 3 10
12b-1 fees (Investor
B).................... 37 18 3 11
12b-1 fees (Investor
C).................... 12 2 -- 1
Accounting fees........ 8 6 4 7
Legal fees............. 3 12 5 2
Audit fees............. 14 16 4 7
Trustees' fees and
expenses.............. 2 2 1 1
Custodian fees......... 11 16 5 84
Other.................. 45 77 14 37
-------- -------- -------- --------
TOTAL LIABILITIES....... 6,399 7,344 678 5,127
-------- -------- -------- --------
NET ASSETS:
Paid-in capital......... 579,089 402,645 255,130 360,864
Accumulated
undistributed
(distributions in
excess of) net
investment income...... -- -- -- (720)
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 266,499 191,827 86,106 127,515
Accumulated
undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... 7,701 54,256 13,584 1,400
-------- -------- -------- --------
NET ASSETS.............. $853,289 $648,728 $354,820 $489,059
======== ======== ======== ========
Net Assets
Investor A............. $188,645 $ 80,634 $ 12,260 $ 48,557
Investor B............. 46,895 21,994 4,130 13,516
Investor C............. 14,962 2,018 42 875
Institutional.......... 602,787 544,082 338,388 426,111
-------- -------- -------- --------
Total................ $853,289 $648,728 $354,820 $489,059
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A............. 6,848 5,131 849 2,987
Investor B............. 1,738 1,454 288 853
Investor C............. 553 133 3 54
Institutional.......... 21,595 34,401 23,373 25,970
-------- -------- -------- --------
Total................ 30,734 41,119 24,513 29,864
======== ======== ======== ========
Net asset value--
offering and redemption
price per share
Investor A............. $27.55 $15.72 $14.44 $16.25
====== ====== ====== ======
Investor B*............ $26.99 $15.12 $14.34 $15.85
====== ====== ====== ======
Investor C*............ $27.05 $15.24 $14.28 $16.21
====== ====== ====== ======
Institutional.......... $27.91 $15.82 $14.48 $16.41
====== ====== ====== ======
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)........... $28.85 $16.46 $15.12 $17.02
====== ====== ====== ======
</TABLE>
- -------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
36
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands except Per Share
Amounts)
LIMITED INTERMEDIATE U.S.
MATURITY GOVERNMENT GOVERNMENT
BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
-------- ------------ ---------- --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$138,802; $202,590; $221,333; and
$502,516; respectively)........... $138,093 $202,377 $221,781 $505,617
Repurchase agreements at cost...... 21,874 2,682 5,819 14,157
-------- -------- -------- --------
Total Investments.................. 159,967 205,059 227,600 519,774
Cash............................... 9 -- -- 5,508
Interest and dividends receivable.. 2,013 3,342 2,274 5,927
Receivable from brokers for
investments sold.................. -- 6,028 905 19,583
Receivable for capital shares
issued............................ 3,217 3 536 17
Prepaid expenses and other assets.. 1 -- 15 2
-------- -------- -------- --------
TOTAL ASSETS....................... 165,207 214,432 231,330 550,811
-------- -------- -------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Payable to brokers for investments
purchased......................... -- 5,659 167 32,071
Payable for capital shares
redeemed.......................... 51 1 43 1
Accrued expenses and other
payables:
Investment advisory fees.......... 74 129 90 315
Administration fees............... 10 13 14 32
12b-1 fees (Investor A)........... 5 4 12 4
12b-1 fees (Investor B)........... 1 2 19 5
Accounting fees................... 1 1 -- 4
Transfer agent fees............... 10 4 3 --
Legal fees........................ 2 4 2 6
Audit fees........................ 5 6 6 10
Custodian fees.................... -- 2 2 5
Other............................. 8 33 12 21
-------- -------- -------- --------
TOTAL LIABILITIES.................. 167 5,858 370 32,474
-------- -------- -------- --------
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C>
Paid-in capital.................... 174,838 223,201 240,042 533,219
Accumulated undistributed
(distributions in excess of) net
investment income................. -- 489 (1) 399
Net unrealized appreciation
(depreciation) from investments .. (709) (213) 448 3,101
Accumulated undistributed net
realized gains (losses) from
investments transactions.......... (9,089) (14,903) (9,529) (18,382)
-------- -------- -------- --------
NET ASSETS......................... $165,040 $208,574 $230,960 $518,337
======== ======== ======== ========
Net Assets
Investor A........................ $ 27,381 $ 18,552 $ 58,589 $ 19,760
Investor B........................ 1,492 1,972 23,448 5,967
Investor C........................ 41 194 69 508
Institutional..................... 136,126 187,856 148,854 492,102
-------- -------- -------- --------
Total........................... $165,040 $208,574 $230,960 $518,337
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A........................ 2,886 1,907 6,400 2,042
Investor B........................ 157 203 2,567 615
Investor C........................ 4 20 8 53
Institutional..................... 14,347 19,308 16,263 50,598
-------- -------- -------- --------
Total........................... 17,394 21,438 25,238 53,308
======== ======== ======== ========
Net asset value--offering and
redemption price per share
Investor A ....................... $9.49 $9.73 $9.15 $9.68
===== ===== ===== =====
Investor B*....................... $9.49 $9.71 $9.13 $9.69
===== ===== ===== =====
Investor C*....................... $9.29 $9.54 $9.10 $9.65
===== ===== ===== =====
Institutional .................... $9.49 $9.73 $9.15 $9.73
===== ===== ===== =====
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)................................ $9.89 $10.14 $9.53 $10.08
===== ====== ===== ======
</TABLE>
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
37
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands except Per Share
Amounts)
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$140,553; $225,386; $9,200; and
$236,839, respectively)........... $143,452 $234,207 $ 9,535 $258,957
Repurchase agreements, at cost..... -- -- 642 10,450
-------- -------- ------- --------
Total Investments.................. 143,452 234,207 10,177 269,407
Interest and dividends receivable.. 2,826 3,776 147 1,956
Receivable from brokers for
investments sold.................. -- -- 4 863
Receivable for capital shares
issued............................ 70 113 -- 41
Prepaid expenses and other assets.. -- -- -- 20
-------- -------- ------- --------
TOTAL ASSETS....................... 146,348 238,096 10,328 272,287
-------- -------- ------- --------
<CAPTION>
LIABILITIES:
<S> <C> <C> <C> <C>
Payable to brokers for investments
purchased......................... 1,086 1,089 7 519
Payable for forward currency
contracts sold.................... -- -- -- 268
Payable for capital shares
redeemed.......................... -- 57 -- 2
Accrued expenses and other
payables:
Investment advisory fees.......... 70 114 6 176
Administration fees............... 6 10 1 22
12b-1 fees (Investor A)........... 2 8 -- 4
12b-1 fees (Investor B)........... 1 3 -- 5
12b-1 fees (Investor C)........... -- -- -- 1
Accounting fees................... 1 1 3 --
Transfer agent fees............... 6 6 17 --
Legal fees........................ 1 2 -- --
Audit fees........................ 4 5 6 4
Custodian fees.................... 2 3 -- 8
Other............................. 56 43 1 12
-------- -------- ------- --------
TOTAL LIABILITIES.................. 1,235 1,341 41 1,021
-------- -------- ------- --------
NET ASSETS:
Paid-in capital.................... 141,038 226,904 10,037 245,443
Accumulated undistributed
(distributions in excess of) net
investment income................. 405 714 17 904
Net unrealized appreciation
(depreciation) from investments
and translation of assets and
liabilities in foreign currencies. 2,899 8,821 335 22,118
Accumulated undistributed net
realized gains (losses) from
investment and foreign currency
transactions...................... 771 316 (102) 2,801
-------- -------- ------- --------
NET ASSETS......................... $145,113 $236,755 $10,287 $271,266
======== ======== ======= ========
Net Assets
Investor A........................ $ 9,601 $ 38,302 $ -- $ 18,826
Investor B........................ 933 3,503 -- 6,299
Investor C........................ -- -- -- 795
Institutional..................... 134,579 194,950 10,287 245,346
-------- -------- ------- --------
Total........................... $145,113 $236,755 $10,287 $271,266
======== ======== ======= ========
Outstanding units of beneficial
interest (shares)
Investor A........................ 911 3,516 -- 1,448
Investor B........................ 89 321 -- 485
Investor C........................ -- -- -- 61
Institutional..................... 12,774 17,895 993 18,889
-------- -------- ------- --------
Total........................... 13,774 21,732 993 20,883
======== ======== ======= ========
Net asset value -- offering and
redemption price per share
Investor A........................ $10.53 $10.89 -- $13.00
====== ====== === ======
Investor B*....................... $10.51 $10.90 -- $13.00
====== ====== === ======
Investor C*....................... -- -- -- $12.92
=== === === ======
Institutional .................... $10.54 $10.89 $10.36 $12.99
====== ====== ====== ======
Maximum Sales Charge (Investor A).. 4.00% 4.00% -- 4.50%
===== ====== === ======
Maximum Offering Price
(100%/(100% -- Maximum Sales
Charge) of net asset value
adjusted to nearest cent) per
share (Investor A)................ $10.97 $11.34 -- $13.61
====== ====== === ======
</TABLE>
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
38
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands, except
Per Share Amounts)
AGGRESSIVE EQUITY
ALLOCATION INCOME
FUND FUND
----------- ------------
<S> <C> <C>
ASSETS:
Investments, at value (Cost $33,545; and $297,726,
respectively)...................................... $35,939 $431,506
Repurchase agreements, at cost...................... 3,016 5,082
------- --------
Total investments................................... 38,955 436,588
Cash................................................ -- 1
Interest and dividends receivable................... 165 1,187
Receivable from brokers for investments sold........ 168 --
Receivable for forward currency contracts purchased. 34 --
Receivable for capital shares issued................ -- 72
Prepaid expenses and other assets................... 1 30
------- --------
TOTAL ASSETS........................................ 39,323 437,878
------- --------
LIABILITIES:
Cash overdraft...................................... 10 --
Payable to brokers for investments purchased........ 172 --
Payable for forward currency contracts sold......... 42 --
Payable for capital shares redeemed................. -- 210
Accrued expenses and other payables:
Investment advisory fees........................... 28 384
Administration fees................................ 3 36
12b-1 fees (Investor A)............................ -- 20
12b-1 fees (Investor B)............................ -- 17
12b-1 fees (Investor C)............................ -- 1
Accounting fees.................................... -- 5
Transfer agent fees................................ 16 --
Legal fees......................................... -- 5
Audit fees......................................... 6 8
Trustees' fees and expenses........................ -- 1
Custodian fees..................................... -- 8
Other.............................................. 3 66
------- --------
TOTAL LIABILITIES................................... 280 761
------- --------
NET ASSETS:
Paid-in capital..................................... 37,260 263,446
Accumulated undistributed (distributions in excess
of) net investment income.......................... 25 --
Net unrealized appreciation (depreciation) from
investments and translation of assets and
liabilities in foreign currencies.................. 2,394 133,780
Accumulated undistributed net realized gains
(losses) from investment and foreign currency
transactions....................................... (636) 39,891
------- --------
NET ASSETS.......................................... $39,043 $437,117
======= ========
Net Assets
Investor A......................................... $ -- $ 99,423
Investor B......................................... -- 21,038
Investor C......................................... -- 778
Institutional...................................... 39,043 315,878
------- --------
Total............................................ $39,043 $437,117
======= ========
Outstanding units of beneficial interest (shares)
Investor A......................................... -- 5,178
Investor B......................................... -- 1,099
Investor C......................................... -- 40
Institutional...................................... 3,692 16,514
------- --------
Total............................................ 3,692 22,831
======= ========
Net asset value--offering and redemption price per
share
Investor A......................................... -- $19.20
=== ======
Investor B*........................................ -- $19.14
=== ======
Investor C*........................................ -- $19.23
=== ======
Institutional...................................... $10.57 $19.13
====== ======
Maximum Sales Charge (Investor A)................... -- 4.50%
=== ====
Maximum Offering Price (100%/(100%--Maximum Sales
Charge) of net asset value adjusted to nearest
cent) per share (Investor A)....................... -- $ 20.10
=== ========
</TABLE>
- -------
*Redemption price per share varies by length of time shares are held.
See notes to financial statements.
39
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION> (Amounts in Thousands)
PRIME U.S. GOVERNMENT TAX-
OBLIGATIONS OBLIGATIONS FREE TREASURY
FUND FUND FUND FUND
----------- --------------- ---- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income................... $47,642 $23,220 $5,697 $21,826
Dividend income................... -- -- 150 --
------- ------- ------ -------
TOTAL INCOME...................... 47,642 23,220 5,847 21,826
------- ------- ------ -------
EXPENSES:
Investment advisory fees.......... 3,442 1,712 652 1,619
Administration fees............... 1,718 854 325 808
12b-1 fees (Investor A)........... 439 496 129 323
Accounting fees................... 151 81 38 76
Custodian fees ................... 73 37 14 36
Legal fees........................ 17 5 10 3
Audit fees........................ 26 13 18 6
Trustees' fees and expenses....... 8 4 2 4
Transfer agent fees............... 59 37 35 39
Registration and filing fees...... 36 31 28 46
Printing costs.................... 65 34 15 23
Other............................. 20 10 4 44
------- ------- ------ -------
TOTAL EXPENSES.................... 6,054 3,314 1,270 3,027
------- ------- ------ -------
Less: Expenses voluntarily
reduced.......................... (432) (381) (109) (597)
------- ------- ------ -------
Net Expenses...................... 5,622 2,933 1,161 2,430
------- ------- ------ -------
Net Investment Income............. 42,020 20,287 4,686 19,396
------- ------- ------ -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions.......... 6 (3) (28) 46
------- ------- ------ -------
Net realized gains (losses) from
investments...................... 6 (3) (28) 46
------- ------- ------ -------
Change in net assets resulting
from operations.................. $42,026 $20,284 $4,658 $19,442
======= ======= ====== =======
</TABLE>
See notes to financial statements.
40
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 2,453 $ 1,480 $ 972 $ --
Dividend income......... 171 1,786 3,474 6,718
Withholding tax expense. -- (14) -- (401)
-------- -------- ------- -------
TOTAL INCOME............ 2,624 3,252 4,446 6,317
-------- -------- ------- -------
EXPENSES:
Investment advisory
fees................... 7,050 6,531 2,725 4,981
Administration fees..... 1,410 1,306 681 858
12b-1 fees (Investor A). 410 189 14 107
12b-1 fees (Investor B). 361 190 21 112
12b-1 fees (Investor C). 98 15 -- 7
Accounting fees......... 180 168 98 181
Custodian fees.......... 65 62 32 263
Legal fees.............. 13 17 11 8
Audit fees.............. 22 25 9 13
Trustees' fees and
expenses............... 7 7 3 4
Transfer agent fees..... 381 258 68 246
Registration and filing
fees................... 72 57 114 57
Printing costs.......... 80 81 42 47
Other................... 17 20 6 10
-------- -------- ------- -------
TOTAL EXPENSES.......... 10,166 8,926 3,824 6,894
-------- -------- ------- -------
Expenses voluntarily
reduced................ -- -- -- --
-------- -------- ------- -------
NET EXPENSES............ 10,166 8,926 3,824 6,894
-------- -------- ------- -------
Net Investment Income
(Loss)................. (7,542) (5,674) 622 (577)
-------- -------- ------- -------
REALIZED/UNREALIZED
GAINS(LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment transactions
and foreign currency
transactions........... 47,197 90,985 16,112 12,746
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (53,844) (46,690) 75,519 55,463
-------- -------- ------- -------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. (6,647) 44,295 91,631 68,209
-------- -------- ------- -------
Change in net assets
resulting from
operations............. $(14,189) $ 38,621 $92,253 $67,632
======== ======== ======= =======
</TABLE>
See notes to financial statements.
41
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
LIMITED INTERMEDIATE U.S.
MATURITY GOVERNMENT GOVERNMENT
BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
-------- ------------ ---------- -------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income...................... $10,576 $15,230 $18,609 $37,592
Dividend income...................... -- -- -- 965
------- ------- ------- -------
TOTAL INCOME......................... 10,576 15,230 18,609 38,557
------- ------- ------- -------
EXPENSES:
Investment advisory fees............. 1,135 1,692 1,587 4,027
Administration fees.................. 307 458 429 1,089
12b-1 fees (Investor A).............. 50 52 139 51
12b-1 fees (Investor B).............. 16 20 221 52
12b-1 fees (Investor C).............. -- 1 1 3
Accounting fees...................... 58 73 98 152
Custodian fees....................... 12 21 19 50
Legal fees........................... 3 6 4 12
Audit fees........................... 10 11 10 18
Trustees' fees and expenses.......... 1 2 2 5
Transfer agent fees.................. 93 96 146 127
Registration and filing fees......... 44 64 51 54
Printing costs....................... 14 24 23 56
Other................................ 3 6 5 14
------- ------- ------- -------
TOTAL EXPENSES....................... 1,746 2,526 2,735 5,710
------- ------- ------- -------
Expenses voluntarily reduced......... (366) (201) (727) (478)
------- ------- ------- -------
NET EXPENSES......................... 1,380 2,325 2,008 5,232
------- ------- ------- -------
Net Investment Income (Loss)......... 9,196 12,905 16,601 33,325
------- ------- ------- -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions............. (256) 1,200 (2,156) 5,014
Net change in unrealized appreciation
(depreciation) from investments..... 467 (461) (99) 4,705
------- ------- ------- -------
Net realized/unrealized gains
(losses) from investments........... 211 739 (2,255) 9,719
------- ------- ------- -------
Change in net assets resulting from
operations.......................... $ 9,407 $13,644 $14,346 $43,044
======= ======= ======= =======
</TABLE>
See notes to financial statements.
42
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income................... $7,472 $12,722 $ 203 $ 6,772
Dividend income................... 12 41 9 839
Withholding tax expense........... -- -- -- (24)
------ ------- ----- -------
TOTAL INCOME...................... 7,484 12,763 212 7,587
------ ------- ----- -------
EXPENSES:
Investment advisory fees.......... 1,059 1,715 44 1,947
Administration fees............... 286 464 9 390
12b-1 fees (Investor A)........... 22 95 -- 45
12b-1 fees (Investor B)........... 9 36 -- 52
12b-1 fees (Investor C)........... -- -- -- 5
Accounting fees................... 62 88 7 82
Custodian fees.................... 13 20 -- 34
Legal fees........................ 3 5 -- 2
Audit fees........................ 10 10 7 10
Trustees' fees and expenses....... 1 2 -- 1
Transfer agent fees............... 59 86 17 101
Registration and filing fees...... 58 17 -- 47
Printing costs.................... 17 27 1 16
Other............................. 3 6 1 3
------ ------- ----- -------
TOTAL EXPENSES.................... 1,602 2,571 86 2,735
------ ------- ----- -------
Expenses voluntarily reduced...... (413) (670) (13) (485)
------ ------- ----- -------
NET EXPENSES...................... 1,189 1,901 73 2,250
------ ------- ----- -------
Net Investment Income (Loss)...... 6,295 10,862 139 5,337
------ ------- ----- -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses) from
investment transactions and
foreign currency transactions.... 798 370 (102) 12,043
Net change in unrealized
appreciation (depreciation) from
investments and translation of
assets and liabilities in foreign
currencies....................... 950 2,487 335 5,097
------ ------- ----- -------
Net realized/unrealized gains
(losses) from investments and
foreign currencies............... 1,748 2,857 233 17,140
------ ------- ----- -------
Change in net assets resulting
from operations.................. $8,043 $13,719 $ 372 $22,477
====== ======= ===== =======
</TABLE>
See notes to financial statements.
43
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS FOR THE YEAR ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY
ALLOCATION INCOME
FUND FUND
------------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Dividend income..................................... 85 10,326
Withholding tax expense............................. (4) (67)
---------- -----------
TOTAL INCOME........................................ 412 13,924
---------- -----------
EXPENSES:
Investment advisory fees............................ 137 4,336
Administration fees................................. 27 867
12b-1 fees (Investor A)............................. -- 226
12b-1 fees (Investor B)............................. -- 161
12b-1 fees (Investor C)............................. -- 4
Accounting fees..................................... 9 120
Custodian fees...................................... 1 42
Legal fees.......................................... -- 9
Audit fees.......................................... 7 15
Trustees' fees and expenses......................... -- 5
Transfer agent fees................................. 16 227
Registration and filing fees........................ -- 70
Printing costs...................................... 2 52
Other............................................... 1 11
---------- -----------
TOTAL EXPENSES...................................... 200 6,145
---------- -----------
Expenses voluntarily reduced........................ (20) --
---------- -----------
NET EXPENSES........................................ 180 6,145
---------- -----------
Net Investment Income (Loss)........................ 232 7,779
---------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses) from investment
transactions and foreign currency transactions..... (648) 49,802
Net change in unrealized appreciation (depreciation)
from investments and translation of assets and
liabilities in foreign currencies.................. 2,394 38,267
---------- -----------
Net realized/unrealized gains (losses) from
investments and foreign currencies................. 1,746 88,069
---------- -----------
Change in net assets resulting from operations...... $1,978 $95,848
========== ===========
</TABLE>
See notes to financial statements.
44
<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 TAX-FREE FUND TREASURY FUND
------------------------ ------------------------ -------------------- ------------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996 1997 1996
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
FROM INVESTMENT ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment
income (loss)...... $ 42,020 $ 39,546 $ 20,287 $ 20,233 $ 4,686 $ 4,632 $ 19,396 $ 16,064
Net realized gains
(losses) from
investment
transactions....... 6 (6) (3) -- (28) 30 46 11
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
Change in net assets
resulting from
operations.......... 42,026 39,540 20,284 20,233 4,658 4,662 19,442 16,075
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income............. (8,431) (6,950) (9,313) (9,106) (1,450) (1,469) (6,104) (5,795)
From net realized
gains from
investment
transactions....... -- -- -- -- -- (4) -- (4)
In excess of net
realized gains from
investment
transactions....... -- (1) -- -- -- -- -- (11)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income............. (33,589) (32,595) (10,974) (11,126) (3,236) (3,163) (13,292) (10,269)
From net realized
gains from
investment
transactions....... -- -- -- -- -- (8) -- (7)
In excess of net
realized gains from
investment
transactions....... -- (4) -- -- -- -- -- (20)
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
Change in net assets
from shareholder
distributions....... (42,020) (39,550) (20,287) (20,232) (4,686) (4,644) (19,396) (16,106)
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............. 1,684,473 1,471,595 1,128,455 1,091,720 407,038 376,346 1,723,599 2,002,575
Dividends
reinvested......... 8,193 6,895 1,537 1,499 824 820 627 493
Cost of shares
redeemed........... (1,563,855) (1,483,872) (1,102,140) (1,095,569) (399,351) (372,907) (1,606,028) (1,918,521)
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
Change in net assets
from capital
transactions........ 128,811 (5,382) 27,852 (2,350) 8,511 4,259 118,198 84,547
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
Change in net assets. 128,817 (5,392) 27,849 (2,349) 8,483 4,277 118,244 84,516
NET ASSETS:
Beginning of period. 743,553 748,945 394,395 396,744 147,867 143,590 382,139 297,623
----------- ----------- ----------- ----------- --------- --------- ----------- -----------
End of period....... $ 872,370 $ 743,553 $ 422,244 $ 394,395 $ 156,350 $ 147,867 $ 500,383 $ 382,139
=========== =========== =========== =========== ========= ========= =========== ===========
</TABLE>
See notes to financial statements.
45
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID
CAPITALIZATION CAPITALIZATION LARGE CAPITALIZATION INTERNATIONAL
FUND FUND FUND DISCOVERY FUND
------------------- ------------------ ---------------------- ------------------
YEAR YEAR YEAR YEAR YEAR DECEMBER 28, YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 1995 TO ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996 (A) 1997 1996
--------- -------- -------- -------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ (7,542) $ (5,835) $ (5,674) $ (5,788) $ 622 $ 338 $ (577) $ 243
Net realized gains
(losses) from
investment and foreign
currency transactions. 47,197 97,422 90,985 176,714 16,112 (74) 12,746 9,372
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (53,844) 159,250 (46,690) 44,007 75,519 10,587 55,463 38,177
--------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. (14,189) 250,837 38,621 214,933 92,253 10,851 67,632 47,792
--------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income................ -- -- -- -- (4) (1) -- --
In excess of net
investment income..... -- -- -- -- -- -- -- (30)
From net realized gains
from investment and
foreign currency
transactions.......... (25,439) (11,580) (23,501) (1,837) (19) -- -- --
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net investment
income................ -- -- -- -- -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (5,903) (1,972) (5,643) (333) (12) -- -- --
DISTRIBUTIONS TO INVESTOR C
SHAREHOLDERS:
In excess of net
investment income..... -- -- -- -- -- -- -- (1)
From net realized gains
from investment and
foreign currency
transactions.......... (1,578) (67) (458) (14) -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ -- -- -- -- (728) (304) -- (243)
In excess of net
investment income..... -- -- -- -- -- -- (108) (528)
From net realized gains
from investment and
foreign currency
transactions.......... (78,723) (52,159) (167,629) (26,657) (2,346) -- -- --
--------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (111,643) (65,778) (197,231) (28,841) (3,109) (305) (108) (802)
--------- -------- -------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 1,051,669 914,251 344,245 195,102 151,936 270,745 188,198 291,763
Dividends reinvested... 85,417 47,118 140,424 20,862 2,462 229 62 444
Cost of shares
redeemed.............. (909,908) (831,418) (411,014) (401,722) (165,363) (4,879) (180,358) (230,102)
--------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... 227,178 129,951 73,655 (185,758) (10,965) 266,095 7,902 62,105
--------- -------- -------- -------- -------- -------- -------- --------
Change in net assets.... 101,346 315,010 (84,955) 334 78,179 276,641 75,426 109,095
NET ASSETS:
Beginning of period.... 751,943 436,933 733,683 733,349 276,641 -- 413,633 304,538
--------- -------- -------- -------- -------- -------- -------- --------
End of period.......... $ 853,289 $751,943 $648,728 $733,683 $354,820 $276,641 $489,059 $413,633
========= ======== ======== ======== ======== ======== ======== ========
</TABLE>
- -------
(a) Period from commencement of operations.
See notes to financial statements.
46
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE U.S.
LIMITED GOVERNMENT GOVERNMENT
MATURITY BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
------------------ ------------------ ------------------ ------------------
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 1996 1997 1996
-------- -------- -------- -------- -------- -------- -------- --------
FROM INVESTMENT
ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 9,196 $ 9,848 $ 12,905 $ 15,345 $ 16,601 $ 14,579 $ 33,325 $ 32,983
Net realized gains
(losses) from
investment
transactions.......... (256) (1,938) 1,200 80 (2,156) (3,968) 5,014 6,686
Net change in
unrealized
appreciation
(depreciation) from
investments........... 467 (764) (461) (4,771) (99) 389 4,705 (15,480)
-------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 9,407 7,146 13,644 10,654 14,346 11,000 43,044 24,189
-------- -------- -------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (1,142) (1,014) (1,130) (1,390) (3,562) (3,573) (1,195) (1,061)
In excess of net
investment income..... -- (40) -- (69) -- -- -- (15)
Tax return of capital.. (6) (63) -- (22) (661) (440) -- --
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (78) (57) (90) (68) (1,259) (879) (256) (131)
In excess of net
investment income..... -- (1) -- (3) -- -- -- --
Tax return of capital.. -- (4) -- (1) (233) (108) -- --
From net realized gains
from investment
transactions.......... -- -- -- -- -- -- -- (2)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ (1) -- (7) (3) (4) (2) (17) (6)
Tax return of capital -- -- -- -- (1) -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (8,051) (8,776) (11,898) (13,884) (9,151) (8,525) (31,847) (31,785)
In excess of net
investment income..... -- (290) -- (691) -- -- -- (443)
Tax return of capital.. (29) (535) -- (215) (1,697) (1,052) -- --
-------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (9,307) (10,780) (13,125) (16,346) (16,568) (14,579) (33,315) (33,443)
-------- -------- -------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 67,317 33,795 28,502 50,593 72,865 65,682 99,111 136,614
Dividends reinvested... 4,250 4,860 3,965 4,873 4,289 3,922 23,608 23,823
Cost of shares
redeemed.............. (59,256) (43,995) (74,602) (77,260) (46,463) (33,163) (188,258) (105,155)
-------- -------- -------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... 12,311 (5,340) (42,135) (21,794) 30,691 36,441 (65,539) 55,282
-------- -------- -------- -------- -------- -------- -------- --------
Change in net assets.... 12,411 (8,974) (41,616) (27,486) 28,469 32,862 (55,810) 46,028
NET ASSETS:
Beginning of period.... 152,629 161,603 250,190 277,676 202,491 169,629 574,147 528,119
-------- -------- -------- -------- -------- -------- -------- --------
End of period.......... $165,040 $152,629 $208,574 $250,190 $230,960 $202,491 $518,337 $574,147
======== ======== ======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
47
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<CAPTION>
(Amounts in Thousands)
CONSERVATIVE
MUNICIPAL MICHIGAN MUNICIPAL ALLOCATION BALANCED
BOND FUND BOND FUND FUND ALLOCATION FUND
------------------ ------------------- ------------ ------------------
YEAR YEAR YEAR YEAR DECEMBER 30, YEAR YEAR
ENDED ENDED ENDED ENDED 1996 TO ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996 1997 (A) 1997 1996
-------- -------- --------- -------- ------------ -------- --------
FROM INVESTMENT
ACTIVITIES:
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 6,295 $ 5,946 $ 10,862 $ 10,082 $ 139 $ 5,337 $ 2,996
Net realized gains
(losses) from
investment and foreign
currency transactions. 798 1,577 370 1,191 (102) 12,043 12,212
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 950 (985) 2,487 (324) 335 5,097 3,923
-------- -------- --------- -------- ------- -------- --------
Change in net assets
resulting from
operations............. 8,043 6,538 13,719 10,949 372 22,477 19,131
-------- -------- --------- -------- ------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (344) (394) (1,596) (1,652) -- (454) (338)
From net realized gains
from investment and
foreign currency
transactions.......... (42) -- (125) (125) -- (1,957) (668)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (28) (18) (118) (107) -- (90) (41)
From net realized gains
from investment and
foreign currency
transactions.......... (5) -- (11) (9) -- (547) (119)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ -- -- -- -- -- (10) (4)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- -- (56) (9)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (5,598) (5,465) (8,576) (8,321) (122) (4,750) (2,494)
From net realized gains
from investment and
foreign currency
transactions.......... (635) (4) (626) (591) -- (13,278) (4,422)
-------- -------- --------- -------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (6,652) (5,881) (11,052) (10,805) (122) (21,142) (8,095)
-------- -------- --------- -------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 30,200 37,655 43,600 41,685 11,873 167,477 42,664
Dividends reinvested... 686 654 2,460 2,574 122 17,657 6,646
Cost of shares
redeemed.............. (28,261) (44,478) (37,409) (35,178) (1,958) (50,433) (28,664)
-------- -------- --------- -------- ------- -------- --------
Change in net assets
from share
transactions........... 2,625 (6,169) 8,651 9,081 10,037 134,701 20,646
-------- -------- --------- -------- ------- -------- --------
Change in net assets.... 4,016 (5,512) 11,318 9,225 10,287 136,036 31,682
NET ASSETS:
Beginning of period.... 141,097 146,609 225,437 216,212 -- 135,230 103,548
-------- -------- --------- -------- ------- -------- --------
End of period.......... $145,113 $141,097 $ 236,755 $225,437 $10,287 $271,266 $135,230
======== ======== ========= ======== ======= ======== ========
</TABLE>
(a) Period from commencement of operations.
See notes to financial statements.
48
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS
(Amounts in Thousands)
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY
ALLOCATION FUND INCOME FUND
--------------- ------------------
DECEMBER 30, YEAR YEAR
1996 TO ENDED ENDED
JUNE 30, JUNE 30, JUNE 30,
1997(A) 1997 1996
--------------- -------- --------
FROM INVESTMENT ACTIVITIES:
<S> <C> <C> <C>
OPERATIONS:
Net investment income (loss). $ 232 $ 7,779 $ 8,736
Net realized gains (losses)
from investment and foreign
currency transactions....... (648) 49,802 45,001
Net change in unrealized
appreciation (depreciation)
from investments and
translation of assets and
liabilities in foreign
currencies.................. 2,394 38,267 42,614
------- -------- --------
Change in net assets resulting
from operations............... 1,978 95,848 96,351
------- -------- --------
DISTRIBUTIONS TO INVESTOR A SHAREHOLDERS:
From net investment income... -- (1,408) (1,414)
From net realized gains from
investment and foreign
currency transactions....... -- (8,386) (2,095)
DISTRIBUTIONS TO INVESTOR B SHAREHOLDERS:
From net investment income... -- (150) (104)
In excess of net investment
income...................... -- -- (7)
From net realized gains from
investment and foreign
currency transactions....... -- (1,419) (244)
DISTRIBUTIONS TO INVESTOR C
SHAREHOLDERS:
From net investment income... -- (4) (1)
From net realized gains from
investment and foreign
currency transactions....... -- (25) (2)
DISTRIBUTIONS TO INSTITUTIONAL
SHAREHOLDERS:
From net investment income... (195) (6,142) (7,170)
From net realized gains from
investment and foreign
currency transactions....... -- (32,123) (9,595)
------- -------- --------
Change in net assets from
shareholder distributions..... (195) (49,657) (20,632)
------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares issued.. 39,922 78,441 50,436
Dividends reinvested......... 195 18,619 7,352
Cost of shares redeemed...... (2,857) (138,602) (125,422)
------- -------- --------
Change in net assets from share
transactions.................. 37,260 (41,542) (67,634)
------- -------- --------
Change in net assets........... 39,043 4,649 8,085
NET ASSETS:
Beginning of period.......... -- 432,468 424,383
------- -------- --------
End of period................ $39,043 $437,117 $432,468
======= ======== ========
</TABLE>
- ---------
(a) Period from commencement of operations.
See notes to financial statements.
49
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ----------- ------------------------------------------- ---------
<S> <C> <C>
Certificates Of Deposit (0.6%):
Foreign Banking & Financial Services (0.6%):
$ 5,000 Societe Generale, 5.75%, 12/23/97.......... $ 5,000
--------
Total Certificates Of Deposit 5,000
--------
Commercial Paper (90.1%):
Agriculture (2.3%):
5,000 Australian Wheat Board, 5.37%, 7/9/97...... 4,994
5,000 Australian Wheat Board, 5.59%, 9/2/97...... 4,951
5,000 Monsanto, 5.62%, 7/9/97.................... 4,994
5,000 Monsanto, 5.65%, 8/14/97................... 4,965
--------
19,904
--------
Automotive (6.3%):
5,000 Daimler Benz, 5.28%, 8/28/97............... 4,957
5,000 Daimler Benz, 5.61%, 10/8/97............... 4,923
5,000 Denso International, 5.64%, 8/21/97........ 4,960
5,000 Denso Nippondenso America, 5.62%, 8/21/97.. 4,960
3,200 Denso Nippondenso America, Inc., 5.70%,
7/11/97................................. 3,195
5,000 Ford Motor Credit, 5.70%, 11/5/97.......... 4,899
5,000 General Motors Acceptance Corp., 5.40%,
7/9/97.................................. 4,994
5,000 General Motors Acceptance Corp., 5.40%,
7/23/97................................. 4,984
5,000 General Motors Acceptance Corp., 5.61%,
9/22/97................................. 4,935
12,400 Volkswagon America, 6.30%, 7/1/97.......... 12,400
--------
55,207
--------
Banking (1.9%):
5,000 Bank of America, 5.70%, 11/3/97............ 4,901
7,000 First Chicago Financial, 5.64%, 9/3/97..... 6,930
5,000 First Chicago Financial, 5.63%, 11/5/97.... 4,901
--------
16,732
--------
Banking & Financial Services (2.3%):
5,000 ABN AMRO, 5.36%, 7/21/97................... 4,985
5,000 ABN AMRO, 5.74%, 10/16/97.................. 4,915
5,000 ABN AMRO, 5.38%, 10/28/97.................. 4,911
5,000 Bil North America, 5.64%, 12/10/97......... 4,873
--------
19,684
--------
Beverages - Wine/Spirits (1.1%):
5,000 Guinness Plc, 5.63%, 7/21/97............... 4,984
5,000 Guinness Plc, 5.58%, 9/11/97............... 4,944
--------
9,928
--------
Building Products (1.0%):
9,100 Armstrong World Industries, 6.25%, 7/1/97.. 9,100
--------
Chemicals (3.6%):
5,000 Air Products & Chemical, 5.60%, 9/30/97.... 4,929
5,000 Akzo Nobel, 5.61%, 9/4/97.................. 4,949
5,000 Akzo Nobel, 5.58%, 10/23/97................ 4,912
5,000 Henkel, 5.58%, 10/22/97.................... 4,912
9,000 Henkel Kgaa, 6.25%, 7/1/97................. 9,000
2,518 Henkel Kgaa, 5.57%, 9/26/97................ 2,484
--------
31,186
--------
Coal (0.6%):
5,000 Consolidated Coal, 5.57%, 7/3/97........... 4,998
--------
Construction (0.6%):
5,000 Cemex, 5.66%, 8/20/97...................... 4,961
--------
Diversified (4.5%):
5,000 BTR Dunlop, 5.40%, 8/6/97.................. 4,973
5,000 BTR Dunlop, 5.42%, 9/2/97.................. 4,953
5,000 BTR Dunlop, 5.67%, 12/1/97................. 4,880
5,000 GE Capital, 5.68%, 11/25/97................ 4,884
5,000 GE Capital, 5.60%, 1/8/98.................. 4,851
5,000 TI Group, 5.67%, 7/16/97................... 4,988
5,000 Toshiba Capital, 5.70%, 9/10/97............ 4,944
5,000 Toshiba International Financial, 5.63%,
8/19/97................................. 4,962
--------
39,435
--------
Education (1.5%):
5,000 Columbia University, 5.62%, 8/27/97........ 4,956
5,000 Columbia University, 5.57%, 9/18/97........ 4,939
3,500 Stanford University, 5.36%, 8/4/97......... 3,482
--------
13,377
--------
Electrical & Electronic (4.1%):
5,000 Avnet, 5.57%, 8/13/97...................... 4,967
5,000 Avnet, 5.58%, 8/28/97...................... 4,955
5,000 Mitsubishi Electric, 5.65%, 7/23/97........ 4,983
5,000 Mitsubishi Electric, 5.60%, 9/10/97........ 4,945
4,400 Sharp Electronics, 5.58%, 7/3/97........... 4,399
5,000 Sharp Electronics, 5.60%, 7/18/97.......... 4,987
1,250 Sony Capital, 5.80%, 7/9/97................ 1,248
5,000 Toshiba America, 5.58%, 8/8/97............. 4,971
--------
35,455
--------
Financial & Insurance (1.7%):
5,000 International Lease, 5.65%, 8/6/97......... 4,972
5,000 SAFECO Credit, 5.60%, 8/4/97............... 4,974
5,000 SAFECO Credit, 5.68%, 10/1/97.............. 4,927
--------
14,873
--------
Financial Services (21.5%):
5,000 ABB Treasury, 6.30%, 7/1/97................ 5,000
5,000 Abbey National, 5.28%, 8/21/97............. 4,963
5,000 Abbey National, 5.67%, 10/2/97............. 4,927
5,000 Bear Stearns Co., Inc., 5.62%, 7/2/97...... 4,999
5,000 Cargill Financial Services, 5.40%, 9/2/97.. 4,953
5,000 Cargill Global Funding, 5.43%, 11/25/97.... 4,889
5,000 Cemex, 5.58%, 8/22/97...................... 4,960
5,000 Copley, 5.60%, 7/30/97..................... 4,977
5,000 Copley Financing, 5.62%, 7/17/97........... 4,988
</TABLE>
Continued
50
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ----------- ------------------------------------------- ---------
<S> <C> <C>
Commercial Paper, continued:
Financial Services, continued:
$ 5,000 Cregem N.A., 5.40%, 7/14/97................ $ 4,990
5,000 Cregem N.A., 5.29%, 8/19/97................ 4,964
5,000 Cregem N.A., 5.60%, 9/3/97................. 4,950
5,000 Cregem N.A., 5.61%, 9/4/97................. 4,949
5,000 Dean Witter, 5.65%, 7/2/97................. 4,999
5,000 Franklin Resources, 5.58%, 8/12/97......... 4,967
5,000 Franklin Resources, 5.62%, 8/20/97......... 4,961
5,000 Goldman Sachs, 5.45%, 10/8/97.............. 4,925
5,000 Goldman Sachs, 5.68%, 11/5/97.............. 4,900
5,000 Goldman Sachs, 5.57%, 11/12/97............. 4,896
4,000 International Lease, 5.65%, 9/2/97......... 3,960
5,000 International Nederladen, 5.61%, 8/25/97... 4,957
5,000 Island Financial, 5.59%, 7/16/97........... 4,988
5,000 Island Financial, 5.64%, 7/28/97........... 4,979
5,000 Island Financial, 5.61%, 8/19/97........... 4,962
5,000 Merrill Lynch, 5.39%, 7/23/97.............. 4,984
5,000 Merrill Lynch, 5.65%, 8/13/97.............. 4,966
5,000 Merrill Lynch, 5.28%, 8/22/97.............. 4,962
5,000 Merrill Lynch, 5.70%, 11/25/97............. 4,884
5,000 Nomura Holdings America Inc., 5.62%,
7/2/97.................................. 4,999
5,000 Pemex, 5.56%, 9/18/97...................... 4,939
5,000 Pemex Credit Suisse, 5.57%, 10/10/97....... 4,922
5,000 Shell Deer Park Trust, 5.56%, 7/2/97....... 4,999
5,000 Swedish Export Credit, 5.37%, 7/3/97....... 4,999
5,074 Takeda Financial, 5.63%, 9/19/97........... 5,011
5,000 Toronto Dominion Hldgs, 5.61%, 12/10/97.... 4,874
5,000 Toronto Dominion Holdings, 5.57%, 12/15/97. 4,871
5,000 Toronto Dominion Holdings Corp., 5.36%,
10/6/97................................. 4,928
5,000 Transamerica Financial, 5.40%, 7/14/97..... 4,990
--------
187,331
--------
Food Products (0.6%):
5,000 Campbell Soup Co., 5.38%, 7/9/97........... 4,994
--------
Foreign Banking & Financial Services (8.6%):
5,000 Bank of Australia, 5.67%, 10/1/97.......... 4,928
5,000 Commonwealth Bank of Australia, 5.42%,
7/14/97................................. 4,990
5,000 Eksportfinans, 5.38%, 7/7/97............... 4,996
4,850 Eksportfinans, 5.39%, 7/22/97.............. 4,835
1,307 Eksportfinans, 5.70%, 8/21/97.............. 1,296
5,000 Eksportfinans, 5.60%, 9/18/97.............. 4,939
5,000 HSBC America, 5.50%, 7/9/97................ 4,994
5,000 Lloyds Bank, 5.57%, 12/29/97............... 4,860
5,000 Nordbanken, 5.60%, 8/15/97................. 4,965
5,000 Nordbanken, 5.57%, 10/21/97................ 4,913
5,000 Nordbanken, 5.62%, 12/11/97................ 4,873
5,000 Societe Generale, 5.50%, 9/10/97........... 4,946
5,000 Societe Generale, 5.61%, 12/10/97.......... 4,874
5,000 Svenska Handlesbanken, 5.40%, 7/23/97...... $ 4,984
5,000 Svenska Handlesbanken, 5.40%, 7/30/97...... 4,978
5,000 Svenska Handlesbanken, 5.70%, 11/13/97..... 4,893
--------
75,264
--------
Governments (Foreign) (4.0%):
5,000 Cades, 5.45%, 10/3/97...................... 4,929
5,000 Kingdom of Sweden, 5.30%, 8/26/97.......... 4,959
5,000 Province of British Columbia, 5.43%, 9/4/97 4,951
5,000 Province of Quebec, 5.72%, 10/15/97........ 4,916
5,000 Province of Quebec, 5.57%, 10/28/97........ 4,908
5,000 Province of Quebec, 5.67%, 11/18/97........ 4,890
5,000 Venantius, 5.40%, 7/16/97.................. 4,989
--------
34,542
--------
Housewares (1.6%):
9,000 Guardian Industries, 6.30%, 7/1/97......... 9,000
5,000 Guardian Industries, 5.59%, 8/29/97........ 4,954
--------
13,954
--------
Industrial Goods & Services (0.6%):
5,000 Hitachi America, 5.58%, 10/16/97........... 4,917
--------
Insurance (2.6%):
5,000 Allianz of America, 5.65%, 7/17/97......... 4,987
5,000 Allianz of America, 5.62%, 7/22/97......... 4,984
5,000 Allianz of America, 5.60%, 8/20/97......... 4,961
8,000 Lincoln National Corp., 6.25%, 7/1/97...... 8,000
--------
22,932
--------
Machinery & Equipment (2.3%):
5,000 Atlas Copco, 5.66%, 9/15/97................ 4,940
5,000 Caterpillar Financial Services, 5.62%,
7/7/97.................................. 4,995
5,000 Caterpillar Financial Services, 5.30%,
8/1/97.................................. 4,977
5,000 Caterpillar Financial Services, 5.70%,
11/12/97................................ 4,894
--------
19,806
--------
Manufacturing - Consumer Goods (1.8%):
5,793 Pacific Dunlop Holdings, 5.70%, 9/30/97.... 5,710
5,000 Pacific Dunlop Holdings, 5.70%, 12/3/97.... 4,877
5,000 Pacific Dunlop Holdings, 5.62%, 12/5/97.... 4,877
--------
15,464
--------
Materials (1.7%):
5,000 Aga Capital, 5.58%, 7/9/97................. 4,994
5,000 Aga Capital, 5.58%, 8/12/97................ 4,967
5,000 Aga Capital, 5.61%, 9/9/97................. 4,945
--------
14,906
--------
Metals & Mining (1.7%):
5,000 Atlas Copco, 5.62%, 7/30/97................ 4,977
5,000 Englehard Corp., 5.61%, 8/11/97............ 4,968
5,000 U.S. Borax, 5.56%, 10/1/97................. 4,929
--------
14,874
--------
</TABLE>
Continued
51
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ----------- ------------------------------------------- ----------
<S> <C> <C>
Commercial Paper, continued:
Oil & Gas Exploration Products & Services (4.5%):
$ 5,000 Arco British Limited, 5.63%, 8/8/97........ $ 4,970
5,000 Arco British Ltd., 5.56%, 9/24/97.......... 4,934
5,000 Arco British Ltd., 5.58%, 10/20/97......... 4,914
5,000 Burmah Castrol Oil, 5.70%, 10/6/97......... 4,923
5,000 Colonial Pipeline, 5.32%, 8/13/97.......... 4,968
5,000 Deer Park Refining, 5.76%, 7/23/97......... 5,000
5,000 Petro Bras, 5.62%, 7/10/97................. 4,993
5,000 Petro Bras, 5.56%, 7/28/97................. 4,979
--------
39,681
--------
Oil & Gas Transportation (0.2%):
2,000 Explorer Pipeline, 5.62%, 7/18/97.......... 1,995
--------
Pharmaceuticals (1.1%):
5,000 American Home Products, 5.63%, 7/16/97..... 4,988
5,000 American Home Products, 5.62%, 9/3/97...... 4,950
--------
9,938
--------
Telecommunications (0.6%):
5,000 Ameritech, 5.35%, 7/25/97.................. 4,982
--------
Trading (4.1%):
5,000 Mitsubishi International, 5.64%, 8/4/97.... 4,973
5,000 Mitsubishi International, 5.57%, 9/16/97... 4,940
5,000 Mitsubishi International, 5.57%, 9/19/97... 4,938
5,000 Mitsui & Co., 5.62%, 7/1/97................ 5,000
5,000 Mitsui & Co., 5.70%, 7/11/97............... 4,992
2,000 Mitsui & Co., 5.75%, 8/12/97............... 1,987
9,000 Mitsui & Co., 5.68%, 9/12/97............... 8,897
--------
35,727
--------
Utilities (1.1%):
5,000 National Rural Utilities, 5.57%, 9/23/97... 4,935
5,000 Southern California Edison, 5.66%, 9/8/97.. 4,946
--------
9,881
--------
Total Commercial Paper 786,028
--------
Corporate Bonds (4.6%):
Banking (1.2%):
5,000 Absit 97-c Goldman Sachs, 5.69%*, 6/15/98.. 5,000
5,000 Model Agency Discount Bond, 5.64%, 6/10/98. 4,997
--------
9,997
--------
Financial & Insurance (0.6%):
5,000 SMM Trust 1997-I, 5.69%*, 5/29/98.......... 5,000
--------
Financial Services (1.7%):
5,000 Bear Stearns, 5.78%*, 11/19/97............. 5,000
5,000 Bear Stearns, 5.48%*, 6/16/98.............. 5,000
5,000 Travelers Funding, 5.83%*, 3/26/98......... 5,000
--------
15,000
--------
Insurance (1.1%):
10,000 All State Funding, 5.93%*, 12/1/97......... 10,000
--------
Total Corporate Bonds 39,997
--------
U.S. Government Agencies (1.7%):
Federal Home Loan Bank
10,000 5.25%*, 8/8/97............................. 10,000
Student Loan Mortgage Assoc.
5,000 5.25%*, 7/18/97............................ 5,000
--------
Total U.S. Government Agencies 15,000
--------
Total Investments 846,025
--------
Repurchase Agreements (4.2%):
1,560 Aubrey Lanston, 6.15%, 7/1/97
(Collateralized by $1,605 various U.S.
Government securities, 0.00-3.38%,
7/24/97-1/15/07, market value--$1,594)... 1,560
10,000 Morgan Stanley, 5.56%, 7/8/97
(Collateralized by $15,477 various U.S.
Government securities, 5.50-9.00%,
2/1/99-4/1/28, market value--$10,223).... 10,000
25,000 Morgan Stanley, 6.35%, 7/18/97
(Collateralized by $25,769 various
corporate bonds, 6.63-8.50%,
11/20/02-2/15/25, market value--$26,330). 25,001
--------
Total Repurchase Agreements 36,561
--------
Total (Cost--$882,586)(a) $882,586
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $872,370.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on June 30, 1997.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
52
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
- ----------- ----------------------------------------- ---------------
<S> <C>
U.S. Government Agencies (60.7%):
Federal Farm Credit Bank (5.7%):
$ 4,475 5.23%, 7/29/97............................. $ 4,457
5,000 5.21%, 8/7/97.............................. 4,973
5,000 5.28%, 8/27/97............................. 4,958
5,000 5.37%, 1/16/98............................. 4,852
5,000 5.52%*, 7/1/98............................. 4,996
---------
24,236
---------
Federal Home Loan Bank (22.7%):
4,000 5.25%, 7/7/97.............................. 3,997
5,000 5.25%, 7/15/97............................. 4,990
5,000 5.27%, 7/16/97............................. 4,989
5,000 5.51%, 8/1/97.............................. 4,976
5,000 5.23%, 8/4/97.............................. 4,975
10,000 5.25%*, 8/8/97............................. 9,999
5,000 5.18%, 8/13/97............................. 4,969
5,000 5.16%, 8/14/97............................. 4,968
5,000 5.17%, 8/26/97............................. 4,960
5,000 5.25%, 9/3/97.............................. 4,953
5,000 5.29%, 9/25/97............................. 4,937
5,000 5.27%, 10/8/97............................. 4,928
5,000 5.44%, 11/10/97............................ 4,900
5,000 5.30%, 11/21/97............................ 4,895
5,000 5.56%*, 12/16/97........................... 4,999
5,000 5.43%, 12/17/97............................ 4,873
5,000 5.55%, 1/2/98.............................. 4,992
7,535 5.65%, 1/7/98.............................. 7,523
---------
95,823
---------
Federal Home Loan Mortgage Corp. (3.6%):
5,000 5.51%, 7/1/97.............................. 5,000
5,000 5.47%, 9/4/97.............................. 4,951
5,000 5.58%*, 4/15/98............................ 4,999
---------
14,950
---------
Federal National Mortgage Assoc. (23.9%):
5,000 5.52%, 7/2/97.............................. 4,999
5,000 5.41%, 7/9/97.............................. 4,994
5,000 5.51%, 7/10/97............................. 4,993
10,000 5.25%, 7/24/97............................. 9,966
10,000 5.27%*, 8/1/97............................. 9,999
5,000 5.16%, 8/18/97............................. 4,966
3,000 5.33%, 9/5/97.............................. 2,971
5,000 5.29%, 9/10/97............................. 4,948
3,000 5.33%, 9/11/97............................. 2,968
5,000 5.63%*, 9/12/97............................ 4,999
10,000 5.49%, 9/29/97............................. 9,864
5,000 5.59%, 10/2/97............................. 4,928
5,000 5.57%, 10/6/97............................. 4,925
5,000 5.33%, 10/16/97............................ 4,921
5,000 5.58%, 11/10/97............................ 4,898
5,000 5.49%, 11/19/97............................ 4,892
5,705 5.07%, 2/23/98............................. 5,677
5,000 5.79%, 3/25/98............................. 5,001
---------
100,909
---------
Student Loan Marketing Assoc. (4.8%):
10,000 5.25%*, 7/18/97............................ 10,000
10,250 5.42%*, 1/21/98............................ 10,255
---------
20,255
---------
Total U.S. Government Agencies 256,173
---------
U.S. Treasury Bills (1.1%):
5,000 5.37%, 2/5/98.............................. 4,837
---------
Total U.S. Treasury Bills 4,837
---------
Total Investments 261,010
---------
Repurchase Agreements (39.5%):
56,896 Aubrey Lanston, 6.15%, 7/1/97
(Collateralized by $58,559 various U.S.
Government securities, 0.00%,
7/10/97-11/7/97, market value--$58,036).. 56,896
60,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $74,003 various U.S.
Government securities, 5.62-7.00%,
10/15/22-4/25/24, market value--$61,200). 60,000
25,000 Greenwich Capital, 6.10%, 7/1/97
(Collateralized by $45,567 various U.S.
Government securities, 6.00-9.00%,
2/1/08-8/1/08, market value--$25,501).... 25,000
25,000 Morgan Stanley, 5.56%, 7/8/97
(Collateralized by $42,725 various U.S.
Government securities, 5.00-9.50%,
9/1/97-6/1/27, market value--$25,621).... 25,000
---------
Total Repurchase Agreements 166,896
---------
Total (Cost-- $427,906)(a) $427,906
=========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $422,244.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on June 30, 1997.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
53
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Tax-Free Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- ---------------------------------------------------------------------------------------------------- ----------
<S> <C> <C>
Municipal Bonds, Notes, & Commercial Paper (100.2%):
California (0.7%):
$ 1,090 California Educational Facility, 5.00%, 12/1/97 .................................................. $ 1,095
--------
Colorado (4.4%):
3,700 Platte River, 3.70%, 8/21/97 ..................................................................... 3,700
3,200 Platte River, 3.70%, 8/22/97 ..................................................................... 3,200
--------
6,900
--------
Connecticut (1.0%):
1,500 Connecticut Special Assessment Unemployment, 3.90%, 7/1/97** ..................................... 1,500
--------
Delaware (5.1%):
4,300 Economic Development Authority, Delmarva Power & Light Project, 4.20%* 10/1/17** ................. 4,300
600 Economic Development Authority, Delmarva Power & Light Project, 4.20%* 10/1/29** ................. 600
500 Economic Development Authority, Delmarva Power & Light Project Series A, 4.20%* 10/1/17** ........ 500
2,600 Economic Development Authority, Hospital Revenue Bond Series B, 4.25%* 12/1/15** ................. 2,600
--------
8,000
--------
Georgia (6.7%):
2,000 Burke County, Georgia, 3.60%, 12/1/97 ............................................................ 2,000
2,000 Georgia Gas Authority, 3.80%, 8/20/97 ............................................................ 2,000
2,900 Hapeville, Development Authority, Industrial, 4.15%* 11/1/15 ..................................... 2,900
3,500 State of Georgia Municipal Gas Authority, 3.75%, 8/6/97 .......................................... 3,500
--------
10,400
--------
Illinois (0.6%):
1,000 Illinois Health Facility Authority, 3.70%, 12/1/97 ............................................... 1,000
--------
Indiana (3.9%):
6,100 Indianapolis Industrial Resource Recovery, 4.25%* 12/1/16** ...................................... 6,100
--------
Kansas (6.9%):
4,500 Burlington Pollution Control, Kansas City Power, 3.80%, 8/7/97 ................................... 4,500
2,500 Burlington Pollution Control, Series A, 3.80%, 8/12/97 ........................................... 2,500
800 Kansas City Industrial Revenue Bonds, 4.20%* 8/1/15 .............................................. 800
3,000 State of Kansas, Series 94B, 4.10%* 9/1/14** ..................................................... 3,000
--------
10,800
--------
Kentucky (4.3%):
6,800 Lexington-Fayette Urban County Airport, 4.25%* 4/1/24** .......................................... 6,800
--------
Louisiana (1.0%):
1,300 De Soto Parish, Pollution Control, Central Louisiana Electric Co., Series A, 4.15%* 7/1/18** ..... 1,300
300 Louisiana Public Facilities Authority, 4.15%* 12/1/15 ............................................ 300
--------
1,600
--------
Michigan (5.5%):
3,900 Housing Development Authority, 4.10%* 10/1/07** .................................................. 3,900
860 Sterling Heights Shopping Center, 4.15%* 12/1/10** ............................................... 860
2,480 University of Michigan, Hospital Revenue Bond, Series A, 4.05%* 12/1/19** ........................ 2,480
400 University of Michigan, Hospital Revenue Bond, Series A, 4.05%* 12/1/27** ........................ 400
1,000 Wayne County, Michigan, 4.20%* 12/1/16 ........................................................... 1,000
--------
8,640
--------
Minnesota (5.6%):
3,710 Rochester, 3.70%, 9/9/97 ......................................................................... 3,710
3,000 Rochester Health Care, Mayo Foundation, Series C, 3.70%, 7/21/97 ................................. 3,000
</TABLE>
Continued
54
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Tax-Free Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- ---------------------------------------------------------------------------------------------------- ----------
<S> <C> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Minnesota, continued:
$ 2,000 Rochester Health Care, Mayo Foundation, Series F, 3.75%, 7/22/97 ................................. $ 2,000
--------
8,710
--------
New Hampshire (2.0%):
2,000 New Hampshire State Turnpike System, 8.38%, 11/1/17 .............................................. 2,071
1,000 State of New Hampshire, 6.70%, 12/1/97 ........................................................... 1,013
--------
3,084
--------
New York (2.2%):
3,400 New York City, Municipal Water Finance Authority, Water & Sewer System, Series C, 4.15%* 6/15/22 . 3,400
--------
North Carolina (4.5%):
2,000 North Carolina Eastern Municipal Power Authority, 3.65%, 8/7/97 .................................. 2,000
5,000 North Carolina Eastern Municipal Power Authority, 3.70%, 8/19/97 ................................. 5,000
--------
7,000
--------
Oregon (1.9%):
3,000 Oregon State, 3.65%, 12/11/97 .................................................................... 3,000
--------
Pennsylvania (7.0%):
2,500 Allegheny County, 3.65%, 10/30/97** .............................................................. 2,500
1,000 College Township Industrial Development, 4.15%* 11/1/11** ........................................ 1,000
2,500 Montgomery County, 3.65%, 7/9/97 ................................................................. 2,500
5,000 Montgomery County, 3.65%, 8/13/97 ................................................................ 5,000
--------
11,000
--------
Texas (14.2%):
2,050 Brazos, 3.70%, 7/8/97 ............................................................................ 2,050
1,000 Harris County Health Facilities Development Corp., 4.15%* 2/15/16 ................................ 1,000
3,700 Harris County Health Facilities, Methodist Hospital, 4.15%* 12/1/25 .............................. 3,700
3,000 Harris County Texas Health Facilities, Series A, 4.15%* 2/15/21 .................................. 3,000
1,000 Harris County Texas, Industrial Development PCR, 4.15%* 3/1/24 ................................... 1,000
2,000 Harris County, Texas Health Facilities, 4.15%* 2/1/26 ............................................ 2,000
2,000 Houston, 3.70%, 10/15/97 ......................................................................... 2,000
500 Port Arthur, Naval District, 4.25%*, 5/1/03 ...................................................... 500
2,000 San Antonio, 3.75%, 9/8/97 ....................................................................... 2,000
5,000 Texas State - Tax & Revenue Anticipation Notes, 4.75%, 8/29/97 ................................... 5,007
--------
22,257
--------
Utah (5.1%):
5,900 Salt Lake County Pollution Control, Service Station Holding Project, Series B, 4.15%* 8/1/07** ... 5,900
2,000 Tooele Co., 3.85%, 8/18/97 ....................................................................... 2,000
--------
7,900
--------
Virginia (2.4%):
3,700 Alexandria Industrial Development Authority, 4.25%* 12/1/16** .................................... 3,700
--------
Wisconsin (3.2%):
5,000 Milwaukee School Order Notes, Series B, 4.25%, 8/21/97 ........................................... 5,005
--------
Wyoming (12.0%):
3,000 Converse County PCR, PacifiCorp Projects, 4.15%* 11/1/24** ....................................... 3,000
3,400 Lincoln County PCR, 3.65%, 8/14/97 ............................................................... 3,400
2,200 Lincoln County Pollution Control, 4.15%* 11/1/24** ............................................... 2,200
2,000 Lincoln County Pollution Control, Exxon Project, Series B, 4.10%* 7/1/17 ......................... 2,000
100 Lincoln County Pollution Control, Exxon Project, Series C, 4.10%* 11/1/14 ........................ 100
3,700 Lincoln County Pollution Control, Exxon Project, Series C, 4.25%*, 7/1/17 ........................ 3,700
</TABLE>
Continued
55
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Tax-Free Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Shares or
Principal Security Amortized
Amount Description Cost
- --------- ---------------------------------------------------------------------------------------------------- ----------
<S> <C> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Wyoming, continued:
$ 300 Lincoln County, Pollution Control, Exxon Project, Series D, 4.10%* 11/1/14 ....................... $ 300
800 Platte County, Series 1984-a, 4.15%* 7/1/14 ...................................................... 800
1,000 Platte County, Series 1984-b, 4.15%* 7/1/14 ...................................................... 1,000
2,300 Sweetwater County Pollution Control, PacifiCorp Projects, 4.15%* 11/1/24** ....................... 2,300
--------
18,800
--------
Total Municipal Bonds, Notes, & Commercial Paper 156,691
--------
Investment Companies (0.1%):
159 Muni Cash Mutual Fund............................................................................. 159
11 Pimco Muni Fund................................................................................... 11
--------
Total Investment Companies 170
--------
Total (Cost--$156,861) (a) $156,861
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $156,350.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on June 30, 1997.
** Put and demand features exist allowing the Fund to require the repurchase of
the investment within variable time periods of less than one year.
(a) Cost for federal income tax and financial reporting purposes are the same.
PCR -- Pollution Control Revenue
See notes to financial statements.
56
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Treasury Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
U.S. Treasury Bills (13.7%):
$ 5,000 8/28/97..................................... $ 4,959
5,000 9/4/97...................................... 4,954
5,000 9/18/97..................................... 4,943
5,000 9/25/97..................................... 4,937
5,000 10/2/97..................................... 4,931
5,000 10/9/97..................................... 4,925
5,000 10/16/97.................................... 4,922
10,000 11/13/97.................................... 9,804
5,000 12/11/97.................................... 4,883
5,000 1/8/98...................................... 4,860
5,000 2/5/98...................................... 4,841
5,000 3/5/98...................................... 4,815
5,000 4/30/98..................................... 4,769
--------
Total U.S. Treasury Bills 68,543
--------
U.S. Treasury Notes (6.0%):
10,000 5.88%, 7/31/97.............................. 10,003
5,000 5.75%, 9/30/97.............................. 5,003
5,000 5.25%, 12/31/97............................. 4,991
5,000 6.13%, 3/31/98.............................. 5,016
5,000 7.88%, 4/15/98.............................. 5,078
--------
Total U.S. Treasury Notes 30,091
--------
Total Investments 98,634
--------
Repurchase Agreements (80.6%):
125,100 Aubrey Lanston, 6.00%, 7/1/97
(Collateralized by $126,120 various
U.S. Government securities, 4.95-7.65%,
9/2/97-6/27/07, market value--$127,606).. 125,100
25,000 BancAmerica Securities, 5.85%, 7/1/97
(Collateralized by $25,190 U.S.
Treasury Note, 6.75%, 6/30/99, market
value--$25,513).......................... 25,000
22,857 Chase Securities, 5.50%, 7/1/97
(Collateralized by $22,860 U.S.
Treasury Note, 5.88%, 1/31/99, market
value--$23,317).......................... 22,857
15,000 Goldman Sachs, 5.42%, 7/10/97
(Collateralized by $15,168 U.S.
Treasury Note, 6.25%, 5/31/99, market
value--$15,300).......................... 15,000
25,000 Greenwich Capital, 6.00%, 7/1/97
(Collateralized by $25,119 various U.S.
Treasury Notes, 5.25-8.87%,
7/15/97-12/31/97, market value--$25,504). 25,000
125,100 HSBC Securities, 6.00%, 7/1/97
(Collateralized by $124,929 various
U.S. Treasury Notes, 4.75-9.25%,
4/30/98-8/31/98, market value--$127,603). 125,100
25,000 JP Morgan, 5.90%, 7/1/97
(Collateralized by $25,627 U.S.
Treasury Note, 5.75%, 12/31/98, market
value--$25,563).......................... 25,000
25,000 Lehman Brothers, 6.10%, 7/1/97
(Collateralized by $25,910 U.S.
Treasury Bill, 0.00%, 10/16/97, market
value--$25,502).......................... 25,000
15,000 Nomura Securities, 5.43%, 7/7/97
(Collateralized by $16,088 U.S.
Treasury Bill, 0.00%, 5/28/98, market
value--$15,300).......................... 15,000
--------
Total Repurchase Agreements 403,057
--------
Total (Cost-- $501,691)(a) $501,691
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $500,383.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
57
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Small Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ---------------------------------------------------- -----------
<S> <C> <C>
Common Stocks (90.3%):
Advertisement (1.2%):
441,125 HA-LO Industries, Inc.(b)........................... $ 10,422
--------
Business Services (12.5%):
566,150 Cambridge Technology Partners, Inc.(b).............. 18,117
866,450 Concord EFS, Inc.(b)................................ 22,418
138,000 Envoy Corp.(b)...................................... 4,589
197,800 F.Y.I. Inc.(b)...................................... 4,747
236,600 Healthcare Recoveries, Inc.(b)...................... 4,584
214,300 IntelliQuest Information Group, Inc.(b)............. 4,822
242,000 International Telecommunication Data
System, Inc.(b)................................... 5,929
294,500 Iron Mountain, Inc.(b).............................. 8,835
151,500 NCO Group, Inc.(b).................................. 4,450
175,600 NOVA Corp. (Georgia)(b)............................. 4,555
479,650 PMT Services, Inc.(b)............................... 7,315
228,900 Registry, Inc.(b)................................... 10,529
84,600 RWD Technologies, Inc.(b)........................... 1,459
218,400 Staff Leasing, Inc.(b).............................. 4,095
--------
106,444
--------
Computer Hardware (5.9%):
185,400 ACT Manufacturing, Inc.(b).......................... 7,740
233,800 Apex PC Solutions, Inc.(b).......................... 4,618
317,200 Harmonic Lightwaves, Inc.(b)........................ 5,432
449,300 Larscom, Inc.-Class A(b)............................ 4,830
52,600 ONTRACK Data International(b)....................... 1,210
425,200 Sanmina Corp.(b).................................... 26,999
--------
50,829
--------
Computer Software (11.9%):
357,700 Aspen Technologies, Inc.(b)......................... 13,458
313,000 Deltek Systems, Inc.(b)............................. 5,321
263,850 INSO Corp.(b)....................................... 5,425
353,000 JDA Software Group, Inc.(b)......................... 12,046
330,200 Pegasystems, Inc.(b)................................ 10,360
163,800 Scopus Technology, Inc.(b).......................... 3,665
628,200 Systemsoft Corp.(b)................................. 6,753
276,000 Veritas Software Corp.(b)........................... 13,869
229,900 Viasoft, Inc.(b).................................... 11,667
276,000 Visio Corp.(b)...................................... 19,458
--------
102,022
--------
Correctional Facilities (1.5%):
457,100 Wackenhut Corrections Corp.(b)...................... 13,313
--------
Cosmetics & Toiletries (1.6%):
347,500 Rexall Sundown, Inc.(b)............................. 13,553
--------
Electrical & Electronic (0.7%):
223,000 Advanced Lighting Technologies, Inc................. 5,631
--------
Entertainment (2.3%):
594,075 Regal Cinemas, Inc.(b).............................. 19,604
--------
Financial Services (6.2%):
196,700 Central Financial Acceptance Corp.(b)............... $ 2,188
768,400 Credit Acceptance Corp.(b).......................... 9,893
277,600 First Alliance Corp.(b)............................. 8,120
931,480 Imperial Credit Industries, Inc.(b)................. 19,154
260,100 Metris Cos., Inc.................................... 8,535
149,000 Sirrom Capital Corp................................. 5,141
--------
53,031
--------
Food Products & Services (0.7%):
180,600 Fine Host Corp.(b).................................. 5,689
--------
Funeral Services (1.0%):
357,700 Equity Corp. International(b)....................... 8,652
--------
Health Care - Services (22.0%):
254,200 American Medserve Corp.(b).......................... 3,305
258,200 American Oncology Resources, Inc.(b)................ 4,357
659,500 Dura Pharmaceuticals, Inc.(b)....................... 26,297
311,225 Jones Medical Industries, Inc....................... 14,783
218,100 MedQuist, Inc.(b)................................... 6,625
382,900 NCS HealthCare, Inc.-Class A(b)..................... 11,631
363,450 OccuSystems, Inc.(b)................................ 10,540
782,300 Omnicare, Inc....................................... 24,544
1,010,300 Orthodontic Centers of America, Inc.(b)............. 18,375
446,100 Parexel International Corp.(b)...................... 14,164
483,150 PhyCor, Inc.(b)..................................... 16,638
161,300 Quintiles Transnational Corp.(b).................... 11,231
435,700 Serologicals Corp.(b)............................... 10,021
373,600 Total Renal Care Holdings, Inc.(b).................. 15,014
--------
187,525
--------
Hotels & Gaming (2.3%):
371,300 Signature Resorts, Inc.(b).......................... 12,833
423,500 Vistana, Inc.(b).................................... 6,564
--------
19,397
--------
Insurance (1.0%):
365,600 Amerin Corp.(b)..................................... 8,866
--------
Machinery & Equipment (0.9%):
295,900 Rental Service Corp.(b)............................. 7,767
--------
Manufacturing - Capital Goods (1.5%):
785,050 Miller Industries, Inc.(b).......................... 12,561
--------
Medical - Equipment & Supplies (0.5%):
260,900 Molecular Devices Corp.(b).......................... 4,566
--------
Medical Equipment & Supplies (3.2%):
432,500 Henry Schein, Inc.(b)............................... 13,516
169,100 Sabratek Corp.(b)................................... 4,735
159,400 Spine-Tech, Inc.(b)................................. 5,918
555,500 UroHealth Systems, Inc.(b).......................... 3,324
--------
27,493
--------
</TABLE>
58
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Small Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ---------------------------------------------------- -----------
<S> <C> <C>
Common Stocks, continued:
Restaurants (1.4%):
517,000 Landry's Seafood Restaurants, Inc.(b)............... $ 11,891
--------
Retail Stores (7.2%):
224,900 CDW Computer Center, Inc.(b)........................ 11,934
399,350 Just For Feet, Inc.(b).............................. 6,964
407,075 Petco Animal Supplies, Inc.(b)...................... 12,212
380,500 Renters Choice, Inc.(b)............................. 7,562
379,800 The Men's Warehouse, Inc.(b)........................ 11,964
408,500 West Marine, Inc.(b)................................ 10,519
--------
61,155
--------
Telecommunications (1.8%):
227,900 Pacific Gateway Exchange, Inc.(b)................... 6,438
266,900 Telco Communications Group, Inc.(b)................. 8,674
--------
15,112
--------
Wholesale Distribution (3.0%):
246,900 Barnett, Inc.(b).................................... 6,049
590,512 Brightpoint, Inc.(b)................................ 19,229
--------
25,278
--------
Total Common Stocks 770,801
--------
Foreign Stocks (1.4%):
Canada (0.5%):
Computer Software (0.5%):
247,600 Discreet Logic, Inc.(b)............................. $ 4,085
--------
Israel (0.9%):
Medical Equipment & Supplies (0.9%):
316,100 ESC Medical Systems Ltd.(b)......................... 8,061
--------
Total Foreign Stocks 12,146
--------
Total Investments, at value 782,947
--------
Repurchase Agreements (7.7%):
65,307,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $69,850,364 various
U.S. Government securities, 2.75-6.65%,
7/25/23-3/15/25, market value--$66,613)............. 65,307
--------
Total Repurchase Agreements 65,307
--------
Total (Cost--$581,755)(a) $848,254
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $853,289.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $21.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ...................................................... $285,290
Unrealized depreciation ...................................................... (18,812)
--------
Net unrealized appreciation .................................................. $266,478
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
59
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Mid Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Common Stocks (93.3%):
Broadcasting (3.6%):
601,200 CanWest Global Communications Corp......... $ 8,905
95,700 Clear Channel Communications, Inc.(b)...... 5,892
197,000 Evergreen Media Corp.(b)................... 8,791
---------
23,588
---------
Building Products (1.0%):
254,100 Royal Group Technologies Ltd.(b)........... 6,734
---------
Business Services (8.3%):
252,900 Cambridge Technology Partners, Inc.(b)..... 8,093
124,600 Cintas Corp................................ 8,566
471,950 Concord EFS, Inc.(b)....................... 12,212
377,775 Paychex, Inc............................... 14,355
232,500 SunGard Data Systems, Inc.(b).............. 10,811
---------
54,037
---------
Computer Hardware (0.5%):
55,000 Sanmina Corp.(b)........................... 3,493
---------
Computer Software (15.6%):
183,400 Baan Co. NV(b)............................. 12,632
248,700 BMC Software, Inc.(b)...................... 13,772
223,000 Cadence Design Systems, Inc.(b)............ 7,471
135,700 CBT Group PLC(b)........................... 8,566
147,600 Computer Sciences Corp.(b)................. 10,646
295,725 McAfee Associates, Inc.(b)................. 18,666
221,100 Parametric Technology Corp.(b)............. 9,411
338,200 PeopleSoft, Inc.(b)........................ 17,840
36,200 Veritas Software Corp.(b).................. 1,819
---------
100,823
---------
Consumer Goods & Services (1.1%):
103,100 Apollo Group, Inc.(b)...................... 3,634
131,100 U.S. Rentals, Inc.(b)...................... 3,319
---------
6,953
---------
Correctional Facilities (1.8%):
292,100 Corrections Corp. of America(b)............ 11,611
---------
Data Processing & Reproduction (2.6%):
66,400 Electronics for Imaging, Inc.(b)........... 3,137
300,500 Fiserv, Inc.(b)............................ 13,410
---------
16,547
---------
Educational Services (0.7%):
130,300 Sylvan Learning Systems, Inc.(b)........... 4,430
---------
Electrical & Electronic (2.4%):
251,800 Analog Devices, Inc.(b).................... 6,688
254,728 Molex, Inc................................. 8,884
---------
15,572
---------
Entertainment (3.2%):
327,700 Carnival Cruise Lines...................... 13,518
187,300 Hollywood Entertainment Corp.(b)........... 4,284
96,700 Regal Cinemas, Inc.(b)..................... 3,191
---------
20,993
---------
Environmental Services (1.3%):
210,600 United Waste Systems, Inc.(b).............. 8,635
---------
Financial Services (7.8%):
98,000 ContiFinancial Corp.(b).................... 3,577
226,800 Credit Acceptance Corp.(b)................. 2,920
129,100 Finova Group, Inc.......................... 9,876
229,200 FIRSTPLUS Financial Group, Inc.(b)......... 7,793
311,600 Green Tree Financial Corp.................. 11,101
335,650 Money Store, Inc. (The).................... 9,629
221,200 Nationwide Financial Services.............. 5,876
---------
50,772
---------
Food & Household Products (0.8%):
135,500 Sunbeam Corp............................... 5,115
---------
Funeral Services (4.3%):
620,100 Service Corp. International................ 20,385
182,550 Stewart Enterprises........................ 7,667
---------
28,052
---------
Health & Personal Care (0.7%):
189,400 Alberto-Culver Co.......................... 4,415
---------
Health Care (3.5%):
921,300 HEALTHSOUTH Corp.(b)....................... 22,974
---------
Health Care - Services (6.2%):
215,300 Dura Pharmaceuticals, Inc.(b).............. 8,585
533,400 Omnicare, Inc.............................. 16,735
247,950 PhyCor, Inc.(b)............................ 8,539
87,500 Quintiles Transnational Corp.(b)........... 6,092
---------
39,951
---------
Hotels & Lodging (4.3%):
343,700 Hospitality Franchise Systems, Inc.(b)..... 19,934
213,400 Sun International Hotel(b)................. 7,882
---------
27,816
---------
Insurance (3.8%):
211,600 HCC Insurance Holdings, Inc................ 5,647
384,800 SunAmerica, Inc............................ 18,758
---------
24,405
---------
Manufacturing - Consumer Goods (1.8%):
295,200 Newell Cos., Inc........................... 11,697
---------
Medical - Biotechnology (0.8%):
145,500 Biogen, Inc.(b)............................ 4,929
---------
Medical Equipment & Supplies (0.6%):
45,100 Guidant Corp............................... 3,834
---------
Medical - Hospital Management & Services (1.9%):
436,125 Health Management Associates, Inc.(b)...... 12,430
---------
</TABLE>
60
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Mid Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Common Stocks, continued:
Retail Stores (5.8%):
57,500 CDW Computer Centers, Inc.(b).............. $ 3,051
279,844 Consolidated Stores Corp.(b)............... 9,725
104,600 Dollar General............................. 3,923
221,100 MSC Industrial Direct Co., Inc.(b)......... 8,872
157,900 Saks Holdings, Inc.(b)..................... 3,948
259,000 U.S. Office Products Co.(b)................ 7,916
---------
37,435
---------
Telecommunications (0.0%):
5,000 Qwest Communications International(b)...... 136
---------
Telecommunications - Services & Equipment (4.8%):
80,900 Cascade Communications Corp.(b)............ 2,235
355,400 FORE Systems, Inc.(b)...................... 4,842
137,800 PairGain Technologies, Inc.(b)............. 2,136
278,900 Tellabs, Inc.(b)........................... 15,584
447,500 West TeleServices Corp.(b)................. 6,601
---------
31,398
---------
Wholesale Distribution (1.6%):
396,100 Richfood Holdings, Inc..................... 10,299
---------
Wholesale Distribution - Pharmaceuticals (2.5%):
286,875 Cardinal Health, Inc....................... 16,424
---------
Total Common Stocks 605,498
---------
Total Investments, at value 605,498
---------
Repurchase Agreements (6.5%):
42,125,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $78,601,673 various
FHLMC's, 6.20-6.70%, 10/15/20-3/15/24,
market value--$42,968)................... 42,125
---------
Total Repurchase Agreements 42,125
---------
Total (Cost-- $455,796)(a) $647,623
=========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $648,728.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for financial
reporting in excess of federal income tax reporting of $32. Cost for federal
income tax purposes differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ........................... $ 206,494
Unrealized depreciation ........................... (14,699)
---------
Net unrealized appreciation ....................... $ 191,795
=========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
61
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Large Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks (98.3%):
Banking & Financial Services (0.8%):
78,300 Green Tree Financial Corp.................. $ 2,789
--------
Broadcasting & Publishing (1.0%):
81,500 British Sky Broadcasting Group ADR......... 3,642
--------
Business Services (1.0%):
74,100 Automatic Data Processing, Inc............. 3,483
--------
Chemicals (1.4%):
113,100 Monsanto Co................................ 4,870
--------
Communications Equipment (1.9%):
94,200 Lucent Technologies, Inc................... 6,788
--------
Computer Hardware (2.0%):
65,600 Hewlett Packard Co......................... 3,674
94,600 Sun Microsystems, Inc.(b).................. 3,521
--------
7,195
--------
Computer Software (10.4%):
47,800 BMC Software, Inc.(b)...................... 2,647
226,100 First Data Corp............................ 9,935
75,200 Microsoft Corp.(b)......................... 9,503
164,450 Oracle Corp.(b)............................ 8,284
60,200 Parametric Technology Corp.(b)............. 2,562
77,200 Peoplesoft Inc.(b)......................... 4,072
--------
37,003
--------
Computers & Peripherals (3.0%):
57,500 3Com Corp.(b).............................. 2,588
120,600 Cisco Systems, Inc.(b)..................... 8,095
--------
10,683
--------
Consumer Goods & Services (4.8%):
179,250 CUC International, Inc.(b)................. 4,627
71,100 Nike, Inc.................................. 4,150
59,800 Procter & Gamble Co........................ 8,447
--------
17,224
--------
Cosmetics (2.2%):
81,700 Gillette Co................................ 7,741
--------
Diversified (1.1%):
95,400 Cognizant Corp............................. 3,864
--------
Diversified Operations (1.2%):
59,500 Tyco Laboratories, Inc..................... 4,139
--------
Electrical & Electronic (3.7%):
131,800 Emerson Electric Co........................ 7,257
90,800 General Electric Co........................ 5,936
--------
13,193
--------
Electrical & Electronics (1.1%):
56,100 Applied Materials, Inc.(b)................. 3,973
--------
Entertainment (1.5%):
128,300 Carnival Cruise Lines...................... 5,292
--------
Financial Services (10.2%):
97,500 American Express Co........................ $ 7,264
110,400 Associates First Capital Corp.............. 6,127
233,600 Fannie Mae................................. 10,192
51,400 Household International, Inc............... 6,036
177,850 MBNA Corp.................................. 6,514
--------
36,133
--------
Food & Beverage (2.9%):
68,500 McDonald's Corp............................ 3,309
100,000 The Coca-Cola Co........................... 6,975
--------
10,284
--------
Food Processing & Packaging (1.5%):
58,300 CPC International, Inc..................... 5,382
--------
Food Products & Services (0.7%):
53,000 Safeway, Inc.(b)........................... 2,445
--------
Forest & Paper Products (1.7%):
120,600 Kimberly-Clark Corp........................ 6,000
--------
Funeral Services (1.4%):
156,400 Service Corp. International(b)............. 5,142
--------
Health Care (2.6%):
114,400 Baxter International, Inc.................. 5,977
85,200 Columbia/HCA Healthcare Corp............... 3,349
--------
9,326
--------
Health Care - Drugs (4.2%):
60,900 Eli Lilly & Co............................. 6,657
69,800 Pfizer, Inc................................ 8,341
--------
14,998
--------
Hotels & Lodging (4.0%):
147,400 Hilton Hotels Corp......................... 3,915
86,900 Hospitality Franchise Systems(b)........... 5,040
84,400 Marriott International, Inc................ 5,180
--------
14,135
--------
Industrial Goods & Services (3.8%):
28,100 Clorox Co.................................. 3,709
118,200 United Technologies Corp................... 9,812
--------
13,521
--------
Insurance (5.1%):
56,000 American International Group, Inc.......... 8,365
97,400 Marsh & McLennan Cos., Inc................. 6,952
59,100 Sunamerica Inc............................. 2,881
--------
18,198
--------
Medical Equipment & Supplies (3.3%):
66,600 Boston Scientific Corp.(b)................. 4,092
93,000 Medtronic, Inc............................. 7,533
--------
11,625
--------
</TABLE>
Continued
62
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Large Capitalization Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Multiple Industry (0.8%):
50,300 Corning Glass.............................. $ 2,798
--------
Office Equipment & Services (1.5%):
66,100 Xerox Corp................................. 5,214
--------
Pharmaceuticals (5.2%):
55,600 Johnson & Johnson.......................... 3,579
74,100 Merck & Co., Inc........................... 7,669
57,700 Warner-Lambert Co.......................... 7,169
--------
18,417
--------
Retail Stores (3.8%):
129,100 Sears Roebuck & Co......................... 6,939
120,300 Walgreen Co................................ 6,451
--------
13,390
--------
Retail Stores - Specialty (1.9%):
99,300 Home Depot, Inc............................ 6,845
--------
Technology (1.9%):
47,900 Intel Corp................................. 6,793
--------
Telecommunications (2.3%):
135,800 AirTouch Communications, Inc.(b)........... 3,718
135,100 WorldCom, Inc.(b).......................... 4,323
--------
8,041
--------
Telecommunications - Services And Equipment (1.0%):
61,800 Tellabs, Inc.(b)........................... 3,453
--------
Wholesale Distribution - Pharmaceuticals (1.4%):
85,450 Cardinal Health, Inc....................... 4,892
--------
Total Common Stocks 348,911
--------
Total Investments, at value 348,911
--------
Repurchase Agreements (1.8%):
6,210,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $8,181,142 FHLMC,
6.20%, 3/15/97, market value--$6,334).... 6,210
--------
Total Repurchase Agreements 6,210
--------
Total (Cost--$269,015) $355,121
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $354,820.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $62.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ........................ $ 89,220
Unrealized depreciation ........................ (3,176)
--------
Net unrealized appreciation .................... $ 86,044
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
63
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
- ---------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks (95.2%):
Australia (3.2%):
Beverages & Tobacco (0.5%):
1,304,000 Foster's Brewing Group Ltd................. $ 2,403
--------
Construction (0.5%):
485,000 Leighton Holdings.......................... 2,344
--------
Diversified (0.9%):
452,348 Smith (Howard) Ltd......................... 4,270
--------
Insurance (0.5%):
432,408 QBE Insurance Group Ltd.................... 2,591
--------
Pharmaceuticals (0.8%):
651,500 CSL Ltd.................................... 3,963
--------
Total Australia 15,571
--------
Austria (0.5%):
Engineering (0.5%):
13,300 VA Technologie AG.......................... 2,434
--------
Belgium (1.6%):
Retail Stores/Catalog (1.6%):
16,200 Colruyt SA................................. 7,908
--------
Brazil (0.5%):
Beverages & Tobacco (0.5%):
155,000 Companhia Cervejaria Brahma................ 2,393
--------
Canada (2.5%):
Electronic Components/ Instruments (0.5%):
333,100 CAE, Inc................................... 2,656
--------
Manufacturing - Consumer Goods (1.4%):
303,000 Bombardier, Inc., Class B.................. 6,875
--------
Natural Resources (0.6%):
110,000 Canadian Natural Resources Ltd.(b)......... 2,859
--------
Total Canada 12,390
--------
Denmark (1.5%):
Food Products & Services (1.5%):
121,800 Danisco A/S................................ 7,458
--------
Finland (0.4%):
Diversified (0.4%):
48,700 Huhtamaki Group............................ 2,095
--------
France (6.4%):
Consumer Goods & Services (4.5%):
29,300 Clarins.................................... 3,903
75,750 Hermes International....................... 7,096
65,930 Societe BIC SA............................. 10,792
--------
21,791
--------
Engineering (0.9%):
13,600 Altran Technologies........................ 4,448
--------
Machinery & Equipment (1.0%):
63,000 Sidel SA.................................. 4,883
--------
Total France 31,122
--------
Germany (7.6%):
Engineering (1.7%):
18,325 Mannesmann AG.............................. 8,192
--------
Manufacturing - Consumer Goods (1.7%):
75,835 Adidas AG.................................. 8,486
--------
Medical Equipment & Supplies (1.4%):
30,300 Fresenius AG............................... 6,886
--------
Pharmaceuticals (2.8%):
115,000 Merck KGaA................................. 5,016
80,735 Schering AG................................ 8,655
--------
13,671
--------
Total Germany 37,235
--------
Hong Kong (2.2%):
Gas & Electric Utility (1.0%):
2,468,840 Hong Kong & China Gas Co. Ltd.............. 4,939
--------
Real Estate (1.2%):
264,100 Henderson Land Development Co. Ltd......... 2,344
283,900 Sun Hung Kai Properties Ltd................ 3,417
--------
5,761
--------
Total Hong Kong 10,700
--------
Indonesia (0.8%):
Banking & Financial Services (0.7%):
4,145,701 Bank International Indonesia............... 3,580
--------
Tobacco (0.1%):
99,600 PT Hanjaya Mandala Sampoema................ 380
--------
Total Indonesia 3,960
--------
Italy (1.6%):
Electronic Components/Instruments (0.4%):
95,800 Gewiss SpA................................. 1,647
--------
Jewelry (1.0%):
887,200 Bulgari SpA................................ 5,016
--------
Optical Supplies (0.2%):
40,550 Safilo SpA................................. 941
--------
Total Italy 7,604
--------
Japan (25.3%):
Chemicals (0.6%):
470,000 Takasago International..................... 2,834
--------
Computer Software (2.1%):
141,000 TDK Corp................................... 10,363
--------
Construction (0.7%):
310,000 Matsushita Electric Works.................. 3,522
--------
Drugs (1.6%):
233,000 Sankyo Co. Ltd............................. 7,839
--------
</TABLE>
Continued
64
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Japan, continued:
Electrical & Electronic (4.6%):
60,500 Keyence Corp............................... $ 8,988
131,000 Rohm Co.................................... 13,509
--------
22,497
--------
Electronic Components/Instruments (2.8%):
121,000 Hirose Electric............................ 8,311
370,000 NEC Corp................................... 5,173
--------
13,484
--------
Food Products & Services (0.9%):
102,000 Matsumotokiyoshi........................... 4,332
--------
Health & Personal Care (0.5%):
55,000 Hoya Corp.................................. 2,451
--------
Manufacturing - Consumer Goods (2.8%):
318,000 Canon, Inc................................. 8,670
130,000 Fuji Photo Film Ltd........................ 5,237
--------
13,907
--------
Office Equipment & Services (1.0%):
385,000 Ricoh Company Ltd.......................... 5,047
--------
Pharmaceuticals (4.1%):
405,000 Daiichi Pharmaceutical..................... 7,149
456,000 Takeda Chemical Industries................. 12,832
--------
19,981
--------
Retail (0.5%):
30,000 Autobacs Seven Co., Ltd.................... 2,380
--------
Services (0.7%):
62,000 Nichii Gakkan Co........................... 3,468
--------
Telecommunications (0.8%):
506,000 Denki Kogyo Co., Ltd....................... 3,940
--------
Toys - Electrical & Electronic (1.6%):
32,000 Nintendo................................... 2,685
230,000 Omron...................................... 4,884
--------
7,569
--------
Total Japan 123,614
--------
Malaysia (0.9%):
Engineering (0.9%):
630,000 United Engineers Ltd....................... 4,543
--------
Mexico (2.9%):
Beverages & Tobacco (1.3%):
1,120,500 Fomento Economico Mexicano, SA de CV....... 6,663
--------
Diversified (0.9%):
644,000 Grupo Carso SA de CV....................... 4,477
--------
Food & Beverages (0.7%):
3,010,000 Grupo Industrial Maseca SA de CV........... 3,292
--------
Total Mexico 14,432
--------
Netherlands (6.3%):
Broadcasting & Publishing (2.2%):
302,500 Elsevier NV................................ 5,064
46,243 Wolters Kluwer NV.......................... 5,641
--------
10,705
--------
Distribution (1.2%):
121,000 Hagemeyer NV............................... 6,262
--------
Office Equipment & Services (2.9%):
63,492 Ahrend..................................... 4,294
75,800 Oce-Van Der Grinten NV..................... 9,796
--------
14,090
--------
Total Netherlands 31,057
--------
New Zealand (1.2%):
Agriculture (0.6%):
909,500 Fernz Corp. Ltd............................ 3,082
--------
Consumer Goods & Services (0.6%):
679,244 Fisher & Paykel Industries Ltd............. 2,647
--------
Total New Zealand 5,729
--------
Norway (1.5%):
Printing & Publishing (1.0%):
229,400 Schibsted ASA.............................. 4,544
--------
Telecommunications (0.5%):
435,000 Nera AS.................................... 2,555
--------
Total Norway 7,099
--------
Philippines (0.3%):
Construction (0.3%):
3,444,800 C&P Homes, Inc............................. 1,293
--------
Singapore (0.5%):
Diversified (0.5%):
991,900 Singapore Technologies Industrial Corp..... 2,553
--------
South Africa (0.8%):
Beverages & Tobacco (0.5%):
75,000 South African Breweries Ltd................ 2,303
--------
Investment Company (0.3%):
425,000 Dimension Data Holdings Ltd.(b)............ 1,687
--------
Total South Africa 3,990
--------
Spain (2.7%):
Apparel & Shoes (0.7%):
75,000 Cortefiel SA............................... 3,279
--------
Beverages & Tobacco (0.5%):
45,000 Tabacalera SA.............................. 2,420
--------
Commercial Services (1.5%):
600,000 Prosegur, CIA de Seguridad SA.............. 7,343
--------
Total Spain 13,042
--------
</TABLE>
Continued
65
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
International Discovery Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Sweden (1.2%):
Engineering (1.2%):
202,500 Sandvik B.................................. $ 5,748
--------
Switzerland (3.8%):
Food Products & Services (1.3%):
4,850 Nestle SA.................................. 6,407
--------
Pharmaceuticals (2.5%):
3,350 Novartis AG................................ 5,363
779 Roche Holdings AG-Genuss................... 7,056
--------
12,419
--------
Total Switzerland 18,826
--------
United Kingdom (9.2%):
Appliances & Household Products (0.4%):
211,000 D.F.S. Furniture Co. PLC................... 1,974
--------
Capital Goods (1.8%):
808,100 Powerscreen International PLC.............. 8,803
--------
Computer Software (0.8%):
344,800 Logica PLC................................. 3,974
--------
Engineering (1.1%):
308,000 Siebe PLC.................................. 5,218
--------
Food Products & Services (1.6%):
707,000 Compass Group PLC.......................... 7,931
--------
Machinery & Equipment (1.0%):
809,100 TT Group PLC............................... 4,982
--------
Manufacturing - Consumer Goods (2.5%):
2,147,500 Halma PLC(b)............................... 5,844
1,819,100 Polypipe PLC............................... 6,297
--------
12,141
--------
Total United Kingdom 45,023
--------
United States (9.8%):
Oil & Gas Exploration Production & Services (1.2%):
188,000 YPF Sociedad Anonima, ADR.................. 5,781
--------
Pharmaceuticals (1.2%):
93,600 Teva Pharmaceutical Industries, Ltd., ADR.. 6,061
--------
Telecommunications (7.4%):
193,925 Cia de Telecomunicaciones de Chile SA, ADR.
6,400
101,300 Newbridge Network Corp., ADR(b)............ 4,407
75,000 Oy Nokia................................... 5,531
183,000 Portugal Telecom SA........................ 7,343
81,800 Telecomunicacoes Brasileiras SA, ADR....... 12,413
--------
36,094
--------
Total United States 47,936
--------
Total Common Stocks 465,755
--------
Mutual Funds (1.9%):
6,052,915 Parkstone Government Obligations Fund...... 6,053
2,968,115 Parkstone Prime Obligations Fund........... 2,968
--------
9,021
--------
Total Mutual Funds 9,021
--------
Preferred Stock (2.0%):
Business Services (2.0%):
47,430 SAP AG..................................... 9,785
--------
Total Preferred Stock 9,785
--------
Total (Cost--$357,018)(a) $484,561
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $489,059.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for financial
reporting in excess of federal income tax reporting of $129. Cost for federal
income tax purposes differs from market value by net unrealized appreciation of
securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ...................... $128,758
Unrealized depreciation ...................... (1,344)
--------
Net unrealized appreciation .................. $127,414
========
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
Forward Currency Contracts Contract Contract Value Appreciation Delivery
Price U.S. Dollars (Depreciation) Date
--------------- ------------------ --------------- ---------------
<S> <C> <C> <C> <C>
Currency Sold:
Hong Kong Dollar 7.752 $(3,955) $ (3) 7/3/97
Japaneses Yen 114.700 (67) 0 7/1/97
============= ===========
Total Currency Sold $(4,022) $ (3)
============= ===========
Net payable for forward currency contracts sold $(4,025)
===========
</TABLE>
See notes to financial statements.
66
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Limited Maturity Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------- -----------
<S> <C> <C>
Repurchase Agreements (13.2%):
$ 21,874 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $25,245 various U.S.
Government securities, 5.87-6.20%,
7/25/23-3/15/24, market value--$22,311)........ $ 21,874
--------
Total Repurchase Agreements 21,874
--------
Short Term Investment Funds (3.0%):
Commercial Paper (3.0%):
5,000 GMAC, 5.65%, 10/21/97............................ 4,911
--------
Total Short Term Investment Funds 4,911
--------
Government Obligations (22.9%):
U.S. Government Agency (0.5%):
733 Government Trust Certificates, 8.55%,
11/15/97....................................... 742
--------
Total U.S. Government Agency 742
--------
U.S. Treasury Notes (22.4%):
20,000 6.25%, 5/31/99................................... 20,053
8,200 7.75%, 11/30/99.................................. 8,479
7,600 6.13%, 9/30/00................................... 7,565
900 6.25%, 2/15/03................................... 893
--------
Total U.S. Treasury Notes 36,990
--------
Total Government Obligations 37,732
--------
Corporate Bonds (33.4%):
Euro Dollar (5.0%):
3,000 Barclays, 11.63%, 5/1/03......................... 3,120
5,000 SNCB Belgium Rail, 8.25%, 2/2/00................. 5,204
--------
8,324
--------
Yankee (2.4%):
2,000 Burmah Castrol BV, 7.00%, 12/15/97............... 2,013
2,000 Tokyo Metro Government, 10.38%,
10/20/97....................................... 2,028
--------
4,041
--------
Industrial (6.0%):
4,750 Hertz Corp., 9.50%, 5/15/98...................... 4,881
5,000 Xerox Corp., 6.50%, 6/29/00...................... 4,988
--------
9,869
--------
Financial (14.6%):
5,000 AT&T Capital Corp., 6.49%, 5/17/99............... 5,006
5,000 Chrysler Financial Corp., 6.28%, 6/23/99......... 4,994
5,000 First Data Corp., 6.61%, 6/9/00.................. 4,999
5,000 Lehman Brothers Holdings, 6.89%, 10/10/00........ 5,013
3,000 National City Capital Trust I, 6.75%*,
6/1/99......................................... 3,000
1,000 Wachovia Bank, 6.70%, 4/14/99.................... 1,006
--------
24,018
--------
Utilities (5.4%):
3,750 British Gas & Finance, 8.38%, 9/8/99............. 3,909
5,000 National Power Co. Plc, 7.12%, 7/11/01........... 5,025
--------
8,934
--------
Total Corporate Bonds 55,186
--------
Asset Backed Securities (12.8%):
2,909 Alps, 7.15%, 9/15/04............................. 2,919
3,040 General Electric Capital Services, Inc.,
7.50%, 5/25/20................................. 3,059
5,000 Green Tree Financial Corp., 6.55%,
7/15/28........................................ 4,994
1,872 Green Tree Home Improvement Loan Trust,
7.85%, 7/15/09................................. 1,918
715 Greentree Financial Corp., 5.90%, 1/15/21........ 716
1,892 Lehman FHA - Title 1 Loan Trust, 6.78%,
3/25/08........................................ 1,897
2,968 Lehman Mortgage Trust, 8.00%, 3/20/99,
Series 91-92,.................................. 3,009
925 Structured Asset Securities Co., 7.50%,
8/25/26........................................ 925
1,174 Structured Asset Security Co., 5.75%,
2/25/28........................................ 1,168
454 USAA Auto Loan Grantor Trust, Series
1993 -1A, 3.90%, 3/15/99....................... 452
--------
Total Asset Backed Securities 21,057
--------
Floating Rate Notes (11.6%):
Asset Backed Securities (5.6%):
5,000 AT&T Universal Credit Card Master Trust,
5.90%*, 4/17/02................................ 4,990
4,190 HFC Home Equity Loan, 6.14%*, 10/20/07........... 4,218
--------
9,208
--------
Financial (6.0%):
5,000 Main Place Real Estate Inv., 5.65%*,
3/25/00........................................ 5,000
5,000 MBNA Corp., 7.00%*, 6/17/02...................... 4,999
--------
9,999
--------
Total Floating Rate Notes 19,207
--------
Total Investments, at value 138,093
--------
Total (Cost-- $160,676)(a) $159,967
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $165,040.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $79.
Cost for federal income tax purposes differs from market value by net
unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation .................................................... $ 337
Unrealized depreciation .................................................... (1,125)
--------
Net unrealized depreciation ................................................ $ (788)
=======
</TABLE>
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity arrangements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on June 30, 1997.
See notes to financial statements.
67
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Intermediate Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- -------------------------------------------- --------
<S> <C> <C>
Repurchase Agreements (1.3%):
$ 2,682 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $2,921 various U.S.
Government securities, 6.20-6.55%,
8/15/22-3/15/24, market value--$2,736)... $ 2,682
--------
Total Repurchase Agreements 2,682
--------
Government Obligations (83.8%):
U.S. Government Agency (0.4%):
Government Trust Certificates
290 8.55%, 11/15/97 .......................... 293
Guaranteed Export Trust
638 6.61%, 6/15/99, Series 94-d ............... 643
--------
Total U.S. Government Agency 936
--------
U.S. Treasury Notes (70.1%):
12,400 6.38%, 4/30/99............................. 12,461
10,600 7.75%, 11/30/99............................ 10,961
20,600 6.88%, 3/31/00............................. 20,928
28,000 6.13%, 9/30/00............................. 27,870
5,300 8.50%, 11/15/00............................ 5,655
5,730 6.25%, 1/31/01............................. 5,697
28,300 6.25%, 6/30/02............................. 28,113
5,600 5.88%, 11/15/05............................ 5,355
5,300 7.00%, 7/15/06............................. 5,450
24,266 3.38%, 1/15/07............................. 23,675
--------
Total U.S. Treasury Notes 146,165
--------
Mortgage Pass Thru's (13.3%):
Federal Home Loan Mortgage Corp.
1,420 8.75%, 4/1/17, Pool #555138................ 1,488
564 8.00%, 5/1/17, Pool #141183................ 576
Federal National Mortgage Assoc.
829 8.75%, 8/1/09, Pool #20252................. 864
1,644 9.00%, 8/1/09, Pool #84251................. 1,726
2,090 9.00%, 1/1/10, Pool #62226................. 2,196
2,115 11.50%, 5/1/10, Pool #313025............... 2,273
3,680 13.00%, 8/1/15, Pool #100044............... 4,343
1,673 8.25%, 7/1/17, Pool #124439................ 1,719
1,408 8.50%, 2/1/25, Pool #303545................ 1,459
Government National Mortgage Assoc.
93 9.00%, 9/15/04, Pool #4029................. 98
44 9.00%, 10/15/04, Pool #4265................ 47
69 9.00%, 12/15/04, Pool #4309................ 73
55 9.00%, 12/15/04, Pool #4790................ 59
65 9.00%, 12/15/04, Pool #4991................ 69
109 9.00%, 1/15/05, Pool #4610................. 115
34 9.00%, 1/15/05, Pool #4820................. 36
45 9.00%, 1/15/05, Pool #4921................. 47
26 9.00%, 1/15/05, Pool #4961................. 27
62 9.00%, 4/15/05, Pool #8328................. 66
110 9.00%, 9/15/08, Pool #24863................ 117
142 9.00%, 9/15/08, Pool #25395................ 151
43 9.00%, 9/15/08, Pool #25407................ 45
169 9.00%, 10/15/08, Pool #23554............... 178
24 9.00%, 10/15/08, Pool #26836............... 25
19 9.00%, 10/15/08, Pool #27716............... 20
109 9.00%, 11/15/08, Pool #27002............... 115
152 9.00%, 12/15/08, Pool #28156............... 161
141 9.00%, 12/15/08, Pool #29022............... 149
120 9.00%, 2/15/09, Pool #27253................ 127
145 9.00%, 2/15/09, Pool #29381................ 153
74 9.00%, 2/15/09, Pool #30538................ 78
19 9.00%, 3/15/09, Pool #29644................ 20
68 9.00%, 4/15/09, Pool #31183................ 72
75 9.00%, 4/15/09, Pool #31362................ 79
203 9.00%, 4/15/09, Pool #32386................ 215
60 9.00%, 4/15/09, Pool #45022................ 64
82 9.00%, 5/15/09, Pool #30185................ 87
322 9.00%, 5/15/09, Pool #32989................ 341
208 9.00%, 5/15/09, Pool #34103................ 220
81 9.00%, 5/15/09, Pool #38055................ 85
73 9.00%, 7/15/09, Pool #33963................ 77
234 9.50%, 12/20/13, Pool #119221.............. 251
165 9.50%, 10/20/14, Pool #121161.............. 176
20 9.50%, 12/20/15, Pool #245600.............. 21
70 9.50%, 1/20/16, Pool #149721............... 75
371 9.50%, 2/20/16, Pool #150634............... 397
133 9.50%, 3/20/16, Pool #149729............... 142
428 9.50%, 4/20/16, Pool #149718............... 459
407 9.50%, 4/20/16, Pool #152042............... 435
82 9.50%, 5/20/16, Pool #158468............... 88
104 9.50%, 5/20/16, Pool #160304............... 112
535 9.50%, 6/20/16, Pool #166048............... 573
197 9.50%, 7/20/16, Pool #002590............... 211
38 9.50%, 8/20/16, Pool #177323............... 41
111 9.50%, 9/20/16, Pool #002626............... 119
169 9.50%, 9/20/16, Pool #170929............... 181
117 9.50%, 11/20/16, Pool #2661................ 126
63 9.50%, 3/30/17, Pool # 2732................ 67
135 9.50%, 8/20/17, Pool #214044............... 144
649 9.50%, 9/20/17, Pool #836.................. 695
100 9.50%, 9/20/17, Pool #235042............... 107
307 9.50%, 2/20/18, Pool #217671............... 329
77 9.50%, 3/20/18, Pool #247563............... 83
138 9.50%, 6/20/18, Pool #246100............... 148
75 9.50%, 6/20/18, Pool #250860............... 81
219 9.50%, 6/20/18, Pool #252784............... 234
21 9.50%, 8/20/18, Pool #001038............... 22
96 9.50%, 12/20/18, Pool #263506.............. 103
65 9.50%, 7/20/19, Pool #255345............... 70
94 9.50%, 8/20/19, Pool #1236................. 101
109 9.50%, 10/20/19, Pool #1273................ 116
395 9.50%, 12/20/19, Pool #1309................ 423
</TABLE>
Continued
68
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Intermediate Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 441 9.50%, 12/20/19, Pool #281785.............. $ 473
52 9.50%, 1/20/20, Pool #1327................. 55
149 9.50%, 5/20/20, Pool #1399................. 159
107 9.50%, 9/20/20, Pool #1471................. 114
144 9.50%, 11/20/20, Pool #1507................ 155
82 9.50%, 12/20/20, Pool #1525................ 87
76 9.50%, 2/20/21, Pool #21561................ 81
92 9.50%, 7/20/21, Pool #1651................. 99
100 9.50%, 8/20/21, Pool #1669................. 107
125 9.50%, 10/20/21, Pool #21705............... 134
47 9.50%, 8/20/22, Pool #73................... 50
195 9.50%, 12/20/22, Pool #2988................ 209
--------
Total Mortgage Pass Thru's 27,713
--------
Total Government Obligations 174,814
--------
Asset Backed Securities (1.9%):
3,884 General Electric Capital Services, Inc.,
7.50%, 5/25/20 ........................ 3,909
--------
Total Asset Backed Securities 3,909
--------
Collateralized Mortgage Obligations (11.3%):
Government Agency Backed CMO's (11.3%):
Drexel Burnham Lambert Trust
$ 337 8.60%, 6/1/15 ............................ $ 340
--------
Federal Home Loan Mortgage Corp.
1,014 8.50%, 5/15/20, Pool #1087G................ 1,027
--------
Federal National Mortgage Assoc.
789 7.00%, 6/25/13, Pool #1993-6 .............. 731
2,581 9.25%, 4/25/18, Pool #1988-7 .............. 2,750
575 9.00%, 3/25/20, Series 1990-2 ............. 605
2,667 9.00%, 7/25/20, Series 90-84 ............. 2,820
1,890 7.75%, 3/25/21, Series 1992-1 ............. 1,881
7,000 7.50%, 8/25/22, Series 1994-93 ............ 7,166
--------
15,953
--------
Goldman Sachs
613 9.95%, 11/1/17 ........................... 616
--------
Ryland Acceptance Corp.
5,368 9.00%, 7/1/16 ............................ 5,718
--------
Total Government Agency Backed CMO's 23,654
--------
Total Collateralized Mortgage Obligations 23,654
--------
Total Investments, at value 202,377
--------
Total (Cost--$205,272)(a) $205,059
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $208,574.
(a) Represents cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ....................... $ 471
Unrealized depreciation ....................... (684)
------
Net unrealized depreciation ................... $ (213)
======
</TABLE>
See notes to financial statements.
69
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Repurchase Agreements (2.5%):
$ 5,819 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $7,666 FHLMC, 6.20%,
3/15/24, market value--$5,935)........... $ 5,819
--------
Total Repurchase Agreements 5,819
--------
Government Obligations (85.6%):
U.S. Treasury Notes (9.9%):
15,300 5.88%, 11/15/05............................. 14,633
8,000 7.00%, 7/15/06.............................. 8,227
--------
Total U.S. Treasury Notes 22,860
--------
U.S. Treasury Strip (3.2%):
12,300 U. S. Treasury Strips, 0.00%, 5/15/05....... 7,384
--------
Total U.S. Treasury Strip 7,384
--------
Mortgage Pass Thru's (72.5%):
Federal Home Loan Mortgage Corp. (21.0%):
10 11.50%, 3/1/99.............................. 11
74 11.50%, 7/1/99.............................. 78
33 12.50%, 7/1/99.............................. 35
44 10.50%, 8/1/99.............................. 46
13 12.50%, 8/1/99.............................. 13
22 11.50%, 9/1/99.............................. 23
152 12.50%, 10/1/99............................. 163
16 12.00%, 11/1/99............................. 18
24 12.50%, 11/1/99............................. 25
4 12.00%, 12/1/99............................. 4
2 11.50%, 1/1/00.............................. 2
79 12.00%, 1/1/00.............................. 84
15 11.50%, 2/1/00.............................. 16
186 12.00%, 3/1/00.............................. 199
16 11.00%, 4/1/00.............................. 16
308 12.00%, 4/1/00.............................. 330
148 11.00%, 5/1/00.............................. 156
223 11.50%, 5/1/00.............................. 237
42 12.00%, 5/1/00.............................. 45
137 10.50%, 6/1/00.............................. 145
16 12.00%, 6/1/00.............................. 17
29 12.50%, 6/1/00.............................. 31
244 10.00%, 7/1/00.............................. 258
256 10.50%, 7/1/00.............................. 270
14 11.50%, 7/1/00.............................. 14
29 12.00%, 7/1/00.............................. 31
25 12.50%, 7/1/00.............................. 27
122 10.50%, 8/1/00.............................. 129
182 11.00%, 8/1/00.............................. 191
15 10.00%, 9/1/00.............................. 16
71 10.50%, 9/1/00.............................. 75
138 11.00%, 9/1/00.............................. 146
24 11.50%, 9/1/00.............................. 25
52 12.00%, 9/1/00.............................. 56
278 10.50%, 10/1/00............................. 293
505 11.00%, 10/1/00............................. 533
58 11.50%, 10/1/00............................. 61
829 10.50%, 11/1/00............................. 874
62 11.50%, 11/1/00............................. 66
37 12.00%, 11/1/00............................. 40
86 10.00%, 12/1/00............................. 90
226 10.50%, 12/1/00............................. 237
8 11.50%, 12/1/00............................. 9
1 10.00%, 1/1/01.............................. 1
168 10.50%, 1/1/01.............................. 177
89 11.00%, 1/1/01.............................. 95
76 11.50%, 1/1/01.............................. 82
58 10.00%, 2/1/01.............................. 62
27 10.50%, 2/1/01.............................. 29
173 11.00%, 2/1/01.............................. 182
37 9.50%, 3/1/01............................... 39
137 10.00%, 3/1/01.............................. 144
35 10.50%, 3/1/01.............................. 37
48 8.50%, 4/1/01............................... 49
16 10.00%, 4/1/01.............................. 17
56 10.50%, 4/1/01.............................. 59
439 11.00%, 4/1/01.............................. 463
79 12.50%, 4/1/01.............................. 85
14 9.50%, 5/1/01............................... 14
167 9.00%, 6/1/01............................... 174
524 9.00%, 7/1/01............................... 546
37 9.50%, 7/1/01............................... 39
6 10.00%, 7/1/01.............................. 6
134 9.00%, 8/1/01............................... 139
103 10.00%, 8/1/01.............................. 108
363 9.00%, 9/1/01............................... 378
158 10.00%, 9/1/01.............................. 166
125 10.00%, 10/1/01............................. 132
37 9.00%, 11/1/01.............................. 38
45 10.00%, 11/1/01............................. 47
79 12.00%, 11/1/01............................. 85
48 9.00%, 12/1/01.............................. 50
1 7.00%, 1/1/02............................... 1
40 9.00%, 1/1/02............................... 42
68 9.00%, 3/1/02............................... 71
69 9.00%, 8/1/02............................... 72
99 8.00%, 9/1/02............................... 102
93 9.00%, 9/1/02............................... 97
142 9.50%, 9/1/02............................... 150
19 9.50%, 10/1/02.............................. 20
159 10.00%, 10/1/02............................. 167
34 9.50%, 11/1/02.............................. 36
77 10.00%, 11/1/02............................. 81
101 10.50%, 11/1/02............................. 107
12 9.50%, 12/1/02.............................. 13
129 10.00%, 12/1/02............................. 136
</TABLE>
Continued
70
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- ----------
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Federal Home Loan Mortgage Corp., continued:
<S> <C> <C>
$ 180 10.50%, 12/1/02............................. $ 190
130 9.50%, 1/1/03............................... 137
463 9.50%, 2/1/03............................... 488
14 10.50%, 2/1/03.............................. 14
127 10.00%, 3/1/03.............................. 133
19 9.00%, 4/1/03............................... 19
20 9.00%, 5/1/03............................... 21
109 9.50%, 6/1/03............................... 115
34 9.50%, 8/1/03............................... 36
38 8.00%, 9/1/03............................... 39
82 10.00%, 9/1/03.............................. 87
81 9.50%, 10/1/03.............................. 86
256 10.00%, 10/1/03............................. 269
46 9.50%, 11/1/03.............................. 48
26 10.00%, 11/1/03............................. 28
72 10.00%, 12/1/03............................. 75
188 11.00%, 1/1/04.............................. 198
39 10.00%, 2/1/04.............................. 41
206 10.00%, 3/1/04.............................. 216
204 10.00%, 4/1/04.............................. 215
65 10.50%, 4/1/04.............................. 69
52 9.00%, 5/1/04............................... 55
212 10.00%, 5/1/04.............................. 223
14 10.50%, 5/1/04.............................. 15
16 9.00%, 6/1/04............................... 17
240 10.00%, 6/1/04.............................. 252
116 9.50%, 7/1/04............................... 123
268 10.50%, 7/1/04.............................. 283
71 9.00%, 8/1/04............................... 74
70 10.00%, 8/1/04.............................. 74
70 9.00%, 9/1/04............................... 73
113 9.50%, 9/1/04............................... 120
38 9.50%, 10/1/04.............................. 40
93 8.25%, 12/1/04.............................. 96
81 9.00%, 1/1/05............................... 84
420 9.50%, 1/1/05............................... 442
23 9.00%, 2/1/05............................... 24
256 9.00%, 3/1/05............................... 266
263 9.50%, 4/1/05............................... 277
184 8.50%, 5/1/05............................... 190
79 9.50%, 5/1/05............................... 83
73 10.00%, 5/1/05.............................. 77
82 10.00%, 6/1/05.............................. 87
147 8.50%, 7/1/05............................... 152
118 9.00%, 8/1/05............................... 123
33 8.25%, 10/1/05.............................. 33
59 9.00%, 4/1/06............................... 61
186 9.25%, 4/1/06............................... 196
496 9.50%, 5/1/06............................... 523
38 8.00%, 3/1/07............................... 39
105 8.00%, 5/1/07............................... 107
77 8.00%, 8/1/07............................... 79
32 8.75%, 8/1/07............................... 34
66 8.25%, 9/1/07............................... 68
400 8.25%, 10/1/07.............................. 412
86 8.25%, 11/1/07.............................. 88
66 8.50%, 12/1/07.............................. 68
53 8.25%, 1/1/08............................... 54
157 9.00%, 1/1/08............................... 165
860 8.75%, 3/1/08............................... 901
778 8.75%, 4/1/08............................... 816
1,098 8.75%, 5/1/08............................... 1,151
52 8.75%, 7/1/08............................... 55
394 9.25%, 7/1/08............................... 417
130 8.50%, 8/1/08............................... 135
104 9.00%, 8/1/08............................... 110
220 9.25%, 8/1/08............................... 233
224 9.25%, 9/1/08............................... 237
212 9.50%, 10/1/08.............................. 226
206 9.75%, 11/1/08.............................. 221
41 8.00%, 12/1/08.............................. 42
132 9.75%, 12/1/08.............................. 142
114 8.25%, 1/1/09............................... 117
81 8.75%, 1/1/09............................... 85
43 9.00%, 1/1/09............................... 45
279 9.00%, 2/1/09............................... 294
311 8.25%, 3/1/09............................... 319
0 8.75%, 3/1/09............................... 0
142 9.75%, 4/1/09............................... 152
90 8.75%, 6/1/09............................... 94
87 9.00%, 6/1/09............................... 92
63 8.00%, 7/1/09............................... 64
65 8.25%, 8/1/09............................... 67
188 9.00%, 9/1/09............................... 199
465 9.00%, 11/1/09.............................. 491
82 9.25%, 11/1/09.............................. 87
33 9.00%, 12/1/09.............................. 35
135 9.25%, 12/1/09.............................. 143
273 9.00%, 2/1/10............................... 287
100 9.25%, 2/1/10............................... 105
97 9.00%, 4/1/10............................... 102
17 8.25%, 7/1/10............................... 17
242 8.00%, 12/1/10.............................. 247
119 8.50%, 2/1/11............................... 123
129 9.25%, 2/1/11............................... 136
15 8.75%, 7/1/12............................... 16
50 11.75%, 1/1/13.............................. 57
10 12.50%, 1/1/13.............................. 12
1,564 9.00%, 6/1/14............................... 1,653
41 11.75%, 6/1/14.............................. 46
</TABLE>
Continued
71
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- ----------
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Federal Home Loan Mortgage Corp., continued:
<S> <C> <C>
$ 94 11.75%, 5/1/15.............................. $ 106
1,560 12.25%, 8/1/15.............................. 1,783
25 9.00%, 4/1/16............................... 26
24 9.00%, 5/1/16............................... 25
20 8.75%, 6/1/16............................... 20
102 9.00%, 6/1/16............................... 108
228 9.00%, 7/1/16............................... 241
71 9.50%, 7/1/16............................... 75
114 8.75%, 8/1/16............................... 119
58 9.25%, 8/1/16............................... 61
181 8.75%, 9/1/16............................... 190
182 9.50%, 9/1/16............................... 194
890 10.00%, 9/1/16.............................. 959
331 9.00%, 10/1/16.............................. 349
74 9.00%, 11/1/16.............................. 78
78 9.50%, 11/1/16.............................. 83
722 9.00%, 12/1/16.............................. 763
25 8.75%, 1/1/17............................... 27
529 9.00%, 1/1/17............................... 559
352 8.75%, 2/1/17............................... 369
50 8.75%, 3/1/17............................... 53
41 9.25%, 3/1/17............................... 44
462 8.00%, 5/1/17............................... 472
731 8.75%, 5/1/17............................... 765
612 8.00%, 6/1/17............................... 625
115 8.75%, 7/1/17............................... 120
72 9.50%, 7/1/17............................... 77
155 8.25%, 8/1/17............................... 159
54 8.75%, 8/1/17............................... 57
200 9.00%, 8/1/17............................... 211
419 8.50%, 9/1/17............................... 435
1,647 9.00%, 10/1/17.............................. 1,741
260 9.75%, 11/1/17.............................. 279
49 8.50%, 6/1/18............................... 51
72 9.50%, 7/1/19............................... 76
62 8.00%, 11/1/19.............................. 64
62 9.25%, 11/1/19.............................. 65
35 9.50%, 11/1/19.............................. 37
189 9.50%, 5/1/20............................... 201
669 9.00%, 9/1/20............................... 707
1,327 9.50%, 10/1/20.............................. 1,427
215 9.50%, 3/1/21............................... 230
2,500 7.50%, 9/15/21.............................. 2,523
665 8.50%, 1/1/22............................... 690
171 8.00%, 3/1/22............................... 175
945 9.50%, 12/1/22.............................. 1,012
2,798 8.50%, 4/1/26............................... 2,905
Federal National Mortgage Assoc. (7.0%):
90 9.00%, 9/1/97............................... 92
72 9.00%, 10/1/97.............................. 75
7 11.50%, 11/1/98............................. 7
6 11.50%, 12/1/98............................. 6
5 12.00%, 1/1/99.............................. 5
16 12.00%, 7/1/99.............................. 17
1 12.00%, 10/1/99............................. 1
20 11.50%, 11/1/99............................. 22
33 11.50%, 2/1/00.............................. 36
35 12.50%, 2/1/00.............................. 37
16 11.50%, 3/1/00.............................. 18
22 12.00%, 4/1/00.............................. 24
10 12.50%, 4/1/00.............................. 11
50 12.00%, 5/1/00.............................. 54
1 12.50%, 5/1/00.............................. 1
22 11.50%, 6/1/00.............................. 23
79 12.50%, 6/1/00.............................. 84
82 12.00%, 7/1/00.............................. 88
126 12.50%, 7/1/00.............................. 136
140 11.00%, 8/1/00.............................. 148
47 11.50%, 8/1/00.............................. 50
65 12.00%, 8/1/00.............................. 69
135 10.50%, 9/1/00.............................. 143
46 11.50%, 9/1/00.............................. 49
31 12.00%, 9/1/00.............................. 33
61 10.00%, 10/1/00............................. 64
53 10.50%, 10/1/00............................. 56
71 11.00%, 10/1/00............................. 75
91 12.00%, 10/1/00............................. 97
6,519 9.00%, 10/25/00............................. 6,896
57 10.50%, 11/1/00............................. 60
70 11.00%, 11/1/00............................. 73
56 11.50%, 11/1/00............................. 60
43 10.50%, 12/1/00............................. 46
45 11.00%, 12/1/00............................. 48
25 11.50%, 12/1/00............................. 27
18 10.50%, 1/1/01.............................. 19
66 11.00%, 1/1/01.............................. 69
13 11.50%, 1/1/01.............................. 14
19 9.00%, 2/1/01............................... 20
102 10.50%, 2/1/01.............................. 108
14 11.00%, 2/1/01.............................. 15
89 11.50%, 2/1/01.............................. 95
17 10.00%, 3/1/01.............................. 18
69 10.00%, 4/1/01.............................. 73
10 10.50%, 6/1/01.............................. 11
109 11.00%, 6/1/01.............................. 115
44 9.00%, 7/1/01............................... 46
14 9.00%, 8/1/01............................... 14
27 10.00%, 8/1/01.............................. 29
44 10.50%, 8/1/01.............................. 47
80 9.00%, 9/1/01............................... 83
</TABLE>
Continued
72
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Federal National Mortgage Assoc., continued:
$ 53 10.00%, 10/1/01............................. $ 56
34 9.00%, 11/1/01.............................. 35
19 10.00%, 11/1/01............................. 20
92 9.00%, 12/1/01.............................. 96
137 9.00%, 1/1/02............................... 142
71 8.50%, 3/1/02............................... 73
158 10.00%, 1/1/03.............................. 167
40 9.50%, 3/1/03............................... 41
149 12.50%, 8/1/03.............................. 162
7 10.00%, 1/1/04.............................. 7
87 10.50%, 1/1/04.............................. 92
23 10.50%, 2/1/04.............................. 24
79 9.00%, 5/1/04............................... 82
110 10.50%, 5/1/04.............................. 116
2 10.00%, 6/1/04.............................. 2
166 9.25%, 8/1/04............................... 176
41 9.00%, 11/1/04.............................. 42
91 9.00%, 1/1/05............................... 94
94 9.00%, 7/1/05............................... 98
6 10.00%, 8/1/05.............................. 6
229 10.00%, 10/1/05............................. 241
121 10.00%, 11/1/05............................. 127
63 8.00%, 12/1/05.............................. 64
273 11.00%, 9/1/06.............................. 289
113 9.00%, 11/1/06.............................. 118
592 10.00%, 1/1/07.............................. 625
1,229 8.50%, 9/1/07............................... 1,275
135 8.50%, 12/1/08.............................. 140
502 8.50%, 2/1/09............................... 519
57 9.50%, 1/1/10............................... 60
34 9.50%, 5/1/10............................... 36
156 9.25%, 6/1/10............................... 165
35 9.50%, 8/1/11............................... 37
73 11.25%, 6/1/13.............................. 81
114 11.25%, 5/1/14.............................. 128
475 12.50%, 5/1/15.............................. 544
148 9.00%, 12/1/16.............................. 155
59 9.00%, 2/1/17............................... 62
558 8.00%, 12/1/17.............................. 570
Government National Mortgage Assoc. (44.5%):
5 10.50%, 12/15/97............................ 5
2 11.00%, 12/15/97............................ 2
8 11.75%, 12/15/97............................ 9
10 11.00%, 1/15/98............................. 11
2 11.00%, 2/15/98............................. 2
3 11.75%, 2/15/98............................. 3
7 10.50%, 3/15/98............................. 8
9 10.50%, 4/15/98............................. 9
3 11.00%, 4/15/98............................. 3
22 10.50%, 5/15/98............................. 23
26 10.50%, 6/15/98............................. 27
10 10.50%, 8/15/98............................. 11
17 9.50%, 9/15/98.............................. 18
12 10.50%, 9/15/98............................. 13
6 11.00%, 9/15/98............................. 6
4 11.75%, 9/15/98............................. 5
5 12.00%, 9/15/98............................. 5
21 11.75%, 10/15/98............................ 23
46 12.00%, 10/15/98............................ 49
12 10.50%, 11/15/98............................ 13
47 11.00%, 11/15/98............................ 50
2 11.75%, 11/15/98............................ 2
23 12.00%, 11/15/98............................ 24
27 11.00%, 12/15/98............................ 28
22 11.75%, 12/15/98............................ 23
10 12.00%, 12/15/98............................ 10
27 11.50%, 1/15/99............................. 28
33 12.00%, 1/15/99............................. 35
7 10.50%, 2/15/99............................. 7
5 11.00%, 2/15/99............................. 6
4 12.00%, 2/15/99............................. 5
4 10.50%, 3/15/99............................. 4
11 11.75%, 3/15/99............................. 12
14 12.00%, 3/15/99............................. 15
65 11.75%, 4/15/99............................. 72
14 9.50%, 5/15/99.............................. 14
7 11.00%, 5/15/99............................. 8
170 11.75%, 5/15/99............................. 185
22 12.00%, 5/15/99............................. 24
1 12.00%, 5/20/99............................. 1
9 11.50%, 6/15/99............................. 9
9 11.50%, 7/15/99............................. 10
16 12.00%, 7/20/99............................. 16
7 12.00%, 8/20/99............................. 7
27 10.50%, 9/15/99............................. 29
43 11.50%, 9/15/99............................. 45
21 11.50%, 10/15/99............................ 22
19 11.50%, 1/20/00............................. 20
25 11.50%, 2/15/00............................. 27
54 11.50%, 3/15/00............................. 57
17 11.00%, 4/15/00............................. 18
17 11.50%, 4/15/00............................. 18
187 11.00%, 5/15/00............................. 200
88 11.50%, 5/15/00............................. 94
107 12.00%, 5/15/00............................. 114
104 11.00%, 6/15/00............................. 110
1 11.50%, 6/15/00............................. 1
142 12.00%, 6/15/00............................. 150
37 12.00%, 6/20/00............................. 39
10 11.00%, 7/15/00............................. 11
</TABLE>
Continued
73
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 26 11.50%, 7/15/00............................. $ 28
33 12.00%, 7/15/00............................. 35
38 12.00%, 7/20/00............................. 40
55 11.00%, 8/15/00............................. 59
17 11.50%, 8/15/00............................. 18
43 12.00%, 8/20/00............................. 46
30 10.50%, 9/15/00............................. 32
225 11.00%, 9/15/00............................. 238
80 10.00%, 9/20/00............................. 86
56 10.50%, 10/15/00............................ 59
10 11.00%, 10/15/00............................ 11
14 12.00%, 10/15/00............................ 15
178 10.50%, 11/15/00............................ 189
208 11.00%, 11/15/00............................ 221
30 10.00%, 11/20/00............................ 32
18 10.00%, 12/15/00............................ 19
27 10.50%, 12/15/00............................ 29
265 11.00%, 12/15/00............................ 283
4 11.50%, 12/15/00............................ 4
6 10.00%, 1/15/01............................. 7
3 10.50%, 1/15/01............................. 4
197 11.00%, 1/15/01............................. 209
27 11.00%, 1/20/01............................. 28
35 9.50%, 2/15/01.............................. 37
96 10.00%, 2/15/01............................. 102
15 10.50%, 2/15/01............................. 16
109 11.00%, 2/15/01............................. 115
102 10.50%, 2/20/01............................. 107
167 10.00%, 3/15/01............................. 177
10 11.00%, 3/20/01............................. 11
31 9.50%, 4/15/01.............................. 33
11 10.00%, 4/15/01............................. 12
86 10.00%, 4/20/01............................. 94
63 9.50%, 5/15/01.............................. 67
17 9.00%, 6/15/01.............................. 18
44 10.50%, 8/15/01............................. 46
96 9.50%, 10/15/01............................. 102
19 9.00%, 11/15/01............................. 20
101 9.50%, 11/20/01............................. 108
28 9.00%, 4/15/02.............................. 29
113 10.00%, 9/15/02............................. 120
64 9.50%, 11/15/02............................. 67
13 10.00%, 1/15/03............................. 13
45 10.00%, 1/20/03............................. 49
101 9.50%, 2/20/03.............................. 106
89 9.50%, 3/20/03.............................. 96
101 9.50%, 4/15/03.............................. 107
13 10.50%, 4/15/03............................. 14
9 9.50%, 4/20/03.............................. 10
14 9.50%, 6/15/03.............................. 14
19 9.50%, 7/15/03.............................. 20
111 8.50%, 8/15/03.............................. 117
56 10.00%, 9/15/03............................. 60
69 9.50%, 10/20/03............................. 74
81 10.50%, 11/15/03............................ 84
15 10.00%, 12/15/03............................ 16
440 9.50%, 1/15/04.............................. 467
291 9.50%, 2/15/04.............................. 307
94 10.00%, 3/15/04............................. 100
117 11.00%, 3/15/04............................. 125
68 10.00%, 4/15/04............................. 73
69 10.50%, 4/20/04............................. 73
453 10.00%, 5/15/04............................. 482
234 10.00%, 6/15/04............................. 248
56 11.00%, 6/15/04............................. 59
38 10.00%, 6/20/04............................. 41
128 11.50%, 6/20/04............................. 142
123 9.50%, 7/15/04.............................. 130
83 10.00%, 7/15/04............................. 88
86 10.50%, 7/15/04............................. 91
81 9.50%, 7/20/04.............................. 87
41 10.00%, 8/15/04............................. 43
116 11.00%, 8/15/04............................. 124
24 10.00%, 9/15/04............................. 26
151 10.50%, 9/15/04............................. 161
35 9.00%, 10/15/04............................. 37
43 10.00%, 10/15/04............................ 45
108 10.00%, 10/20/04............................ 117
84 9.00%, 11/15/04............................. 88
249 9.50%, 11/20/04............................. 266
159 9.00%, 12/15/04............................. 168
83 9.50%, 12/20/04............................. 89
50 10.50%, 12/20/04............................ 52
83 8.25%, 1/15/05.............................. 86
103 9.00%, 1/15/05.............................. 109
143 8.50%, 2/15/05.............................. 148
92 9.00%, 2/15/05.............................. 97
114 9.50%, 2/15/05.............................. 120
41 8.50%, 3/15/05.............................. 43
74 9.00%, 3/15/05.............................. 78
46 8.00%, 4/15/05.............................. 47
109 9.50%, 4/15/05.............................. 115
35 9.50%, 5/15/05.............................. 37
37 10.00%, 5/15/05............................. 40
13 8.50%, 6/15/05.............................. 13
56 9.50%, 6/15/05.............................. 59
52 8.00%, 7/15/05.............................. 53
83 9.50%, 9/15/05.............................. 88
36 8.50%, 10/15/05............................. 37
101 9.50%, 12/15/05............................. 107
</TABLE>
Continued
74
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 270 8.50%, 1/15/06............................. $ 280
77 8.25%, 3/15/06............................. 79
81 9.00%, 3/20/06............................. 84
93 8.25%, 4/15/06............................. 95
167 8.25%, 5/15/06............................. 172
113 9.00%, 5/20/06............................. 117
148 8.25%, 7/15/06............................. 152
206 10.00%, 7/15/06............................ 219
148 9.50%, 9/15/06............................. 156
37 8.00%, 12/15/06............................ 38
17 8.00%, 9/15/07............................. 17
32 8.00%, 3/15/08............................. 32
38 8.00%, 4/15/08............................. 39
123 8.25%, 6/15/08............................. 127
116 8.25%, 7/15/08............................. 119
178 8.50%, 7/15/08............................. 185
338 8.75%, 8/15/08............................. 353
79 9.00%, 9/15/08............................. 84
30 8.75%, 10/15/08............................ 31
912 9.00%, 10/15/08............................ 964
140 9.00%, 11/15/08............................ 148
461 9.00%, 12/15/08............................ 487
38 9.00%, 1/15/09............................. 40
180 9.00%, 2/15/09............................. 190
668 9.00%, 3/15/09............................. 706
308 9.00%, 4/15/09............................. 325
289 9.00%, 5/15/09............................. 306
171 9.00%, 6/15/09............................. 180
1,203 9.50%, 6/15/09............................. 1,301
2,503 9.50%, 7/15/09............................. 2,699
18 9.00%, 8/15/09............................. 19
2,365 9.50%, 8/15/09............................. 2,550
3,453 9.50%, 9/15/09............................. 3,722
5,064 9.50%, 10/15/09............................ 5,464
1,202 9.50%, 11/15/09............................ 1,296
313 9.50%, 12/15/09............................ 337
54 9.00%, 1/15/10............................. 57
41 8.50%, 4/15/10............................. 42
214 12.50%, 4/15/10............................ 245
254 12.50%, 5/15/10............................ 292
317 13.50%, 5/15/10............................ 376
302 12.50%, 6/15/10............................ 346
145 13.50%, 6/15/10............................ 172
50 12.50%, 7/15/10............................ 58
122 13.50%, 7/15/10............................ 144
23 12.50%, 8/15/10............................ 27
30 13.50%, 8/15/10............................ 36
168 12.50%, 9/15/10............................ 193
42 13.50%, 9/15/10............................ 50
108 9.00%, 10/15/10............................ 114
139 12.50%, 10/15/10........................... 160
514 12.50%, 11/15/10........................... 591
32 13.00%, 11/15/10........................... 37
1,083 12.50%, 12/15/10........................... 1,246
78 13.00%, 12/15/10........................... 90
288 12.50%, 1/15/11............................ 330
138 13.00%, 1/15/11............................ 160
2 12.50%, 2/15/11............................ 2
232 13.00%, 2/15/11............................ 272
17 11.50%, 3/15/11............................ 19
22 12.50%, 3/15/11............................ 26
101 13.00%, 3/15/11............................ 117
420 13.00%, 4/15/11............................ 490
66 13.50%, 4/15/11............................ 78
11 13.00%, 5/15/11............................ 12
385 13.50%, 5/15/11............................ 456
226 14.00%, 5/15/11............................ 270
1,479 14.00%, 6/15/11............................ 1,771
121 15.00%, 6/15/11............................ 149
17 13.00%, 7/15/11............................ 19
244 14.00%, 7/15/11............................ 292
636 15.00%, 7/15/11............................ 782
38 12.50%, 8/15/11............................ 44
4 13.00%, 8/15/11............................ 4
13 13.50%, 8/15/11............................ 15
386 15.00%, 8/15/11............................ 472
13 13.50%, 9/15/11............................ 16
667 15.00%, 9/15/11............................ 818
42 12.50%, 10/15/11........................... 48
2 13.00%, 10/15/11........................... 2
106 15.00%, 10/15/11........................... 131
69 16.00%, 10/15/11........................... 82
18 15.00%, 11/15/11........................... 22
15 16.00%, 11/15/11........................... 18
120 17.00%, 11/15/11........................... 143
106 15.00%, 12/15/11........................... 129
1 16.00%, 12/15/11........................... 2
65 13.00%, 1/15/12............................ 76
19 14.00%, 1/15/12............................ 23
163 15.00%, 1/15/12............................ 198
44 13.00%, 2/15/12............................ 51
8 13.50%, 2/15/12............................ 10
37 14.00%, 2/15/12............................ 44
567 15.00%, 2/15/12............................ 686
1 16.00%, 2/15/12............................ 1
2 14.00%, 3/15/12............................ 3
210 15.00%, 3/15/12............................ 259
2 12.50%, 4/15/12............................ 2
1 14.00%, 4/15/12............................ 1
310 15.00%, 4/15/12............................ 377
</TABLE>
75
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 69 16.00%, 4/15/12............................ $ 82
12 13.00%, 5/15/12............................ 14
20 14.00%, 5/15/12............................ 24
656 15.00%, 5/15/12............................ 805
7 13.00%, 6/15/12............................ 8
512 15.00%, 6/15/12............................ 625
74 14.00%, 7/15/12............................ 89
620 15.00%, 7/15/12............................ 764
40 12.00%, 8/15/12............................ 45
1 13.00%, 8/15/12............................ 1
24 14.00%, 8/15/12............................ 29
1,158 15.00%, 8/15/12............................ 1,420
71 13.00%, 9/15/12............................ 81
111 14.00%, 9/15/12............................ 133
22 14.50%, 9/15/12............................ 27
1,541 15.00%, 9/15/12............................ 1,888
30 13.00%, 10/15/12........................... 35
188 13.50%, 10/15/12........................... 222
106 14.00%, 10/15/12........................... 127
56 14.50%, 10/15/12........................... 69
136 15.00%, 10/15/12........................... 169
133 12.00%, 11/15/12........................... 150
118 13.00%, 11/15/12........................... 138
245 13.50%, 11/15/12........................... 287
212 15.00%, 11/15/12........................... 260
304 12.00%, 12/15/12........................... 345
94 13.00%, 12/15/12........................... 110
34 13.50%, 12/15/12........................... 40
116 15.00%, 12/15/12........................... 143
119 12.00%, 1/15/13............................ 135
71 15.00%, 1/15/13............................ 88
59 12.00%, 2/15/13............................ 67
23 15.00%, 2/15/13............................ 28
15 12.00%, 3/15/13............................ 17
32 12.50%, 3/15/13............................ 37
173 9.50%, 4/15/13............................. 187
17 11.50%, 4/15/13............................ 19
8 12.00%, 4/15/13............................ 9
20 15.00%, 4/15/13............................ 25
1 12.00%, 5/15/13............................ 1
45 11.50%, 6/15/13............................ 50
63 9.50%, 7/15/13............................. 68
35 11.50%, 8/15/13............................ 39
145 12.00%, 8/15/13............................ 163
158 12.00%, 9/15/13............................ 178
194 13.00%, 9/15/13............................ 227
51 12.75%, 9/20/13............................ 59
10 13.00%, 9/20/13............................ 12
252 12.50%, 10/15/13........................... 289
221 13.00%, 10/15/13........................... 258
35 12.50%, 10/20/13........................... 40
93 13.00%, 10/20/13........................... 104
51 12.00%, 11/15/13........................... 57
209 12.50%, 11/15/13........................... 240
27 12.50%, 11/20/13........................... 31
108 12.75%, 11/20/13........................... 124
10 12.00%, 12/15/13........................... 12
160 12.50%, 12/15/13........................... 184
57 12.50%, 12/20/13........................... 66
6 12.75%, 12/20/13........................... 7
99 12.00%, 1/15/14............................ 112
171 12.50%, 1/15/14............................ 197
102 12.00%, 2/15/14............................ 117
1 12.75%, 2/20/14............................ 1
242 12.00%, 3/15/14............................ 275
84 12.50%, 3/15/14............................ 96
47 12.75%, 3/20/14............................ 54
71 12.00%, 4/15/14............................ 81
113 12.50%, 4/15/14............................ 130
25 12.50%, 4/20/14............................ 29
262 12.00%, 5/15/14............................ 298
343 12.50%, 5/15/14............................ 395
45 12.00%, 6/15/14............................ 51
515 12.50%, 6/15/14............................ 590
56 13.00%, 6/15/14............................ 65
98 12.50%, 6/20/14............................ 113
291 12.50%, 7/15/14............................ 334
230 13.00%, 7/15/14............................ 268
144 13.50%, 7/15/14............................ 169
75 14.00%, 7/15/14............................ 90
79 12.50%, 7/20/14............................ 91
2 13.50%, 7/20/14............................ 3
71 11.50%, 8/15/14............................ 80
14 12.50%, 8/15/14............................ 17
266 13.00%, 8/15/14............................ 308
469 13.50%, 8/15/14............................ 554
88 14.00%, 8/15/14............................ 105
43 14.50%, 8/15/14............................ 52
38 12.50%, 8/20/14............................ 44
3 12.75%, 8/20/14............................ 4
4 13.50%, 8/20/14............................ 5
44 12.00%, 9/15/14............................ 50
9 12.50%, 9/15/14............................ 10
86 13.00%, 9/15/14............................ 101
530 13.50%, 9/15/14............................ 625
86 14.00%, 9/15/14............................ 103
20 12.50%, 9/20/14............................ 23
123 13.50%, 9/20/14............................ 141
30 11.50%, 10/15/14........................... 34
36 12.50%, 10/15/14........................... 42
</TABLE>
76
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 274 13.00%, 10/15/14........................... $ 314
196 13.50%, 10/15/14........................... 232
246 14.00%, 10/15/14........................... 294
60 12.50%, 10/20/14........................... 69
3 12.75%, 10/20/14........................... 4
83 13.00%, 10/20/14........................... 95
95 13.50%, 10/20/14........................... 110
45 12.50%, 11/15/14........................... 52
59 13.00%, 11/15/14........................... 69
134 13.50%, 11/15/14........................... 158
100 14.00%, 11/15/14........................... 120
65 12.50%, 11/20/14........................... 76
68 13.50%, 11/20/14........................... 78
67 12.00%, 12/15/14........................... 76
203 12.50%, 12/15/14........................... 234
111 13.00%, 12/15/14........................... 129
14 13.50%, 12/15/14........................... 17
80 14.00%, 12/15/14........................... 96
97 12.75%, 12/20/14........................... 112
132 13.00%, 12/20/14........................... 152
17 13.50%, 12/20/14........................... 20
117 12.00%, 1/15/15............................ 133
469 12.50%, 1/15/15............................ 539
43 13.00%, 1/15/15............................ 51
10 13.50%, 1/15/15............................ 12
40 12.50%, 1/20/15............................ 46
15 13.50%, 1/20/15............................ 18
311 12.00%, 2/15/15............................ 353
245 12.50%, 2/15/15............................ 280
36 13.50%, 2/15/15............................ 42
182 14.00%, 2/15/15............................ 219
373 12.00%, 3/15/15............................ 424
104 12.50%, 3/15/15............................ 120
46 13.00%, 3/15/15............................ 53
24 13.50%, 3/20/15............................ 28
544 12.00%, 4/15/15............................ 618
229 12.50%, 4/15/15............................ 263
14 13.50%, 4/15/15............................ 17
63 13.50%, 4/20/15............................ 73
81 11.50%, 5/15/15............................ 91
492 12.00%, 5/15/15............................ 558
90 12.50%, 5/15/15............................ 104
14 13.00%, 5/15/15............................ 16
146 12.50%, 5/20/15............................ 168
37 13.50%, 5/20/15............................ 42
680 12.00%, 6/15/15............................ 769
41 12.50%, 6/15/15............................ 47
110 13.00%, 6/15/15............................ 128
59 12.50%, 6/20/15............................ 68
17 13.00%, 6/20/15............................ 19
5 13.50%, 6/20/15............................ 6
369 12.00%, 7/15/15............................ 420
21 12.50%, 7/15/15............................ 24
41 12.50%, 7/20/15............................ 48
1 12.75%, 7/20/15............................ 2
148 12.00%, 8/15/15............................ 169
17 12.50%, 8/15/15............................ 20
8 13.00%, 8/20/15............................ 10
110 12.00%, 9/15/15............................ 125
41 12.50%, 9/20/15............................ 48
103 12.00%, 10/15/15........................... 117
92 12.50%, 10/15/15........................... 106
7 9.50%, 11/15/15............................ 8
19 12.50%, 11/20/15........................... 21
4 11.50%, 12/15/15........................... 5
27 12.00%, 12/15/15........................... 31
94 12.00%, 1/15/16............................ 107
82 12.50%, 1/20/16............................ 95
123 9.50%, 2/15/16............................. 133
332 9.50%, 3/15/16............................. 357
71 9.00%, 4/15/16............................. 75
444 9.50%, 4/15/16............................. 479
58 9.25%, 5/15/16............................. 61
818 9.50%, 5/15/16............................. 881
1,660 8.25%, 6/15/16............................. 1,706
74 9.00%, 6/15/16............................. 78
24 9.25%, 6/15/16............................. 25
1,022 9.50%, 6/15/16............................. 1,102
69 9.25%, 7/15/16............................. 73
461 9.50%, 7/15/16............................. 498
32 9.00%, 7/20/16............................. 33
137 9.25%, 8/15/16............................. 145
392 9.50%, 8/15/16............................. 423
64 9.25%, 9/15/16............................. 67
632 9.50%, 9/15/16............................. 681
27 9.25%, 10/15/16............................ 28
165 9.50%, 10/15/16............................ 178
103 9.25%, 11/15/16............................ 109
162 9.50%, 11/15/16............................ 175
99 8.50%, 12/15/16............................ 103
559 8.75%, 12/15/16............................ 584
328 9.25%, 12/15/16............................ 347
282 9.50%, 12/15/16............................ 304
173 9.25%, 12/20/16............................ 182
237 8.50%, 1/15/17............................. 245
223 9.50%, 1/15/17............................. 241
780 7.50%, 1/20/17............................. 779
613 8.50%, 2/15/17............................. 635
60 9.50%, 2/15/17............................. 65
951 8.25%, 3/15/17............................. 978
</TABLE>
77
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc., continued:
$ 200 8.50%, 3/15/17............................. $ 207
42 9.25%, 3/15/17............................. 44
89 9.50%, 3/15/17............................. 96
110 8.50%, 3/20/17............................. 113
43 8.00%, 4/15/17............................. 44
119 9.00%, 4/15/17............................. 126
91 9.50%, 4/15/17............................. 98
135 8.50%, 5/15/17............................. 141
79 8.50%, 6/15/17............................. 82
266 8.75%, 6/15/17............................. 278
309 9.25%, 6/15/17............................. 327
379 9.50%, 6/15/17............................. 408
151 7.00%, 6/20/17............................. 148
71 9.00%, 7/15/17............................. 75
379 9.25%, 7/15/17............................. 400
265 9.50%, 7/15/17............................. 286
500 9.50%, 8/15/17............................. 540
84 8.50%, 9/15/17............................. 87
204 9.25%, 9/15/17............................. 215
790 9.50%, 9/15/17............................. 851
304 9.50%, 10/15/17............................ 328
33 9.50%, 11/15/17............................ 35
61 9.50%, 12/15/17............................ 64
158 9.25%, 1/15/18............................. 167
44 9.50%, 1/15/18............................. 48
82 9.50%, 2/15/18............................. 89
28 9.50%, 3/15/18............................. 30
53 9.00%, 4/15/18............................. 56
249 9.50%, 4/15/18............................. 269
96 8.00%, 4/20/18............................. 98
151 9.50%, 5/15/18............................. 162
34 12.00%, 5/15/18............................ 39
271 9.50%, 6/15/18............................. 293
250 9.50%, 7/15/18............................. 268
350 9.50%, 8/15/18............................. 378
204 9.50%, 9/15/18............................. 221
29 9.50%, 10/15/18............................ 32
66 9.50%, 11/15/18............................ 71
246 9.50%, 12/15/18............................ 265
110 9.50%, 1/15/19............................. 119
262 9.50%, 2/15/19............................. 283
54 9.50%, 3/15/19............................. 58
78 9.50%, 4/15/19............................. 84
104 9.50%, 8/15/19............................. 113
45 9.50%, 9/15/19............................. 48
32 9.25%, 10/15/19............................ 33
37 9.50%, 10/15/19............................ 40
140 9.00%, 11/15/19............................ 148
134 9.50%, 11/15/19............................ 145
104 9.00%, 12/15/19............................ 110
123 9.25%, 12/15/19............................ 130
103 9.50%, 12/15/19............................ 111
35 9.50%, 1/15/20............................. 38
79 9.25%, 2/15/20............................. 84
49 9.50%, 2/15/20............................. 52
73 9.00%, 3/15/20............................. 77
103 9.50%, 3/15/20............................. 111
85 8.00%, 4/15/20............................. 87
29 9.00%, 4/15/20............................. 30
22 9.50%, 4/15/20............................. 23
50 9.00%, 5/15/20............................. 53
192 9.50%, 5/15/20............................. 208
104 9.50%, 6/15/20............................. 113
13 9.50%, 7/15/20............................. 14
20 8.50%, 8/15/20............................. 21
134 9.50%, 8/15/20............................. 145
19 9.50%, 9/15/20............................. 21
69 9.50%, 10/15/20............................ 75
67 9.00%, 11/15/20............................ 71
95 9.50%, 11/15/20............................ 102
261 9.50%, 2/15/21............................. 281
76 9.25%, 4/15/21............................. 80
899 9.50%, 4/15/21............................. 970
181 8.50%, 5/15/21............................. 187
156 9.25%, 5/15/21............................. 165
125 9.50%, 5/15/21............................. 135
21 8.50%, 6/15/21............................. 21
76 9.50%, 6/15/21............................. 82
13 8.50%, 7/15/21............................. 13
67 9.50%, 7/15/21............................. 73
42 8.50%, 8/15/21............................. 44
19 9.50%, 8/15/21............................. 20
62 8.50%, 11/15/21............................ 64
170 9.50%, 11/15/21............................ 183
98 8.50%, 12/15/21............................ 102
151 9.00%, 12/20/21............................ 158
196 8.50%, 1/15/22............................. 203
210 8.00%, 2/20/22............................. 213
90 8.00%, 4/15/22............................. 92
43 9.50%, 5/15/22............................. 47
86 8.50%, 6/15/22............................. 89
17 8.50%, 7/15/22............................. 17
711 8.00%, 7/20/22............................. 724
30 8.50%, 8/15/22............................. 31
12 8.50%, 10/15/22............................ 12
23 8.50%, 11/15/22............................ 23
3,894 6.50%, 11/15/23............................ 3,749
110 8.00%, 11/20/23............................ 112
--------
Total Mortgage Pass Thru's 167,482
--------
Total Government Obligations 197,726
--------
</TABLE>
78
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Collateralized Mortgage Obligations (10.4%):
Government Agency Backed CMO's (10.4%):
$ 518 Cityfed Mortgage Trust, 10.00%, 1/1/18..... $ 518
759 Collateralized Mortgage Securities Corp.,
8.75%, 4/20/19.......................... 788
1,857 Drexel Burnham Lambert, Series H, Class 4,
8.50%, 4/1/17........................... 1,935
Federal Home Loan Mortgage Corp.:
4,020 9.50%, 12/15/18............................ 4,158
Federal National Mortgage Assoc.:
2,846 9.50%, 12/25/18............................ 2,989
500 7.50%, 5/25/19............................. 502
92 9.00%, 7/25/20............................. 97
3,287 8.00%, 6/25/21............................. 3,349
3,000 7.50%, 8/25/22............................. 3,071
1,000 MDC Asset Investors Trust, 7.00%, 2/20/19.. 979
586 Paine Webber Cmo Trust, 8.00%, 1/1/19...... 594
692 Prudential Bache Trust Series 12 Class F,
8.48%, 10/20/20......................... 750
1,214 Prudential Securities Secured Funding
Corp., 6.44%, 2/15/21................... 1,155
3,000 Security Mortgage Acceptance Corp. II,
9.00%, 12/1/16.......................... 3,170
---------
Total Government Agency Backed CMO's 24,055
---------
Total Collateralized Mortgage Obligations 24,055
---------
Total Investments, at value 221,781
---------
Total (Cost--$227,152)(a) $ 227,600
=========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $230,960.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $3.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation .............................................................. $ 1,722
Unrealized depreciation .............................................................. (1,277)
=======
Net unrealized appreciation .......................................................... $ 445
=======
</TABLE>
See notes to financial statements.
79
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- -------------------------------------------- ---------
<S> <C> <C>
Repurchase Agreements (2.7%):
$ 14,157 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $14,970 FHLMC,
7.00%, 4/15/23, market value--$14,440)... $ 14,157
---------
Total Repurchase Agreements 14,157
---------
Government Obligations (37.5%):
U.S. Treasuries (17.5%):
U.S. Treasury Bonds (3.4%):
18,700 6.50%, 11/15/26............................ 17,908
---------
Total U.S. Treasury Bonds 17,908
---------
U.S. Treasury Notes (14.1%):
3,000 6.38%, 4/30/99............................. 3,015
32,290 6.38%, 5/15/00............................. 32,390
2,500 6.13%, 9/30/00............................. 2,488
6,000 6.50%, 5/31/01............................. 6,030
14,800 6.63%, 7/31/01............................. 14,934
6,825 6.50%, 5/31/02............................. 6,848
4,000 7.25%, 5/15/04............................. 4,170
1,050 6.25%, 2/15/07............................. 1,027
2,200 6.63%, 5/15/07............................. 2,217
---------
Total U.S. Treasury Notes 73,119
---------
Total U.S. Treasuries 91,027
---------
Mortgage Pass Thru's (20.0%):
Federal Home Loan Mortgage Corp.
1,636 9.00%, 5/1/20, Pool #A01002................ 1,730
3,599 9.50%, 10/1/20, Pool #A00873............... 3,870
Federal National Mortgage Assoc.
2,466 9.00%, 8/1/09, Pool #84251................. 2,589
4,199 8.25%, 7/1/17, Pool #124439................ 4,315
9,306 8.00%, 11/1/23, Pool #190251............... 9,548
3,892 9.00%, 11/1/24, Pool #280518............... 4,096
4,739 8.50%, 7/1/25, Pool #250273................ 4,910
13,500 7.00%, 7/15/27............................. 13,234
Government National Mortgage Assoc.
8,187 7.50%, 4/15/23, Pool #354563............... 8,254
3,310 6.50%, 9/15/23, Pool #358419............... 3,189
19,334 7.00%, 12/15/23, Pool #780406.............. 19,075
28,405 7.50%, 8/15/25, Pool #780213............... 28,596
---------
Total Mortgage Pass Thru's 103,406
---------
Total Government Obligations 194,433
---------
Corporate Bonds (49.4%):
Asset Backed Securities (6.3%):
10,000 First USA Credit Card Master Trust,
5.79%*, 10/17/06........................ 9,997
5,000 First USA Credit Card Master Trust.,
6.11%*, 2/17/10......................... 4,997
5,000 Republic New York Corp., 5.94%*, 1/29/49... 4,876
12,963 The Money Store, Inc., 5.82%*, 10/15/27.... 12,902
---------
32,772
---------
Euro Dollar (3.2%):
10,000 Credit Foncier de France, 8.00%, 1/14/02... 10,370
3,000 Ford Credit Europe, 6.88%, 10/10/97........ 3,004
5,000 Poland Non-U.S. Glb Reg'd, 3.00%, 10/27/24. 2,881
---------
16,255
---------
Yankee (2.1%):
5,000 Hyundai Semiconductor, 8.25%, 5/15/04...... 5,000
6,000 Poland, 7.13%, 7/1/04...................... 5,975
---------
10,975
---------
Industrial (5.5%):
8,050 ERAC USA Finance Co., 6.35%, 1/15/01....... 7,919
5,000 ITT Corp., 7.38%, 11/15/15................. 4,656
5,000 News America Holdings, 7.75%, 12/1/45...... 4,688
6,000 Santa Fe Pacific Gold, 8.38%, 7/1/05....... 6,255
5,000 Time Warner Entertainment, 8.38%, 3/15/23.. 5,106
---------
28,624
---------
Financial (21.8%):
6,000 Allstate Financing II, 7.83%, 12/1/45...... 5,828
7,000 AT&T Capital Corp., 6.49%, 5/17/99......... 7,009
8,000 BGB Finance (Ireland), 7.12%, 2/27/12...... 7,816
5,000 Chrysler Financial Corp., 6.28%, 6/23/99... 4,994
10,400 Continental Bank N.A., 11.25%, 7/1/01...... 10,894
18,000 Homeside Lending Inc., 6.88%, 6/30/02...... 17,936
10,000 MBNA Corp., 7.00%*, 6/17/02................ 9,999
5,000 Money Store, 8.38%, 4/15/04................ 5,100
2,300 National Bank of Hungary, 8.80%, 10/1/02... 2,470
10,000 North Fork Capital Trust, 8.70%, 12/15/26.. 10,041
10,000 Pan Pacific Industry, 0.00%, 4/28/07....... 4,483
6,000 Salomon Inc., 7.30%, 5/15/02............... 6,038
10,000 Skandinaviska Enskilda, 6.33%*, 11/20/49... 10,060
5,000 St. George Funding Co., 0.00%, 12/31/49.... 5,008
5,000 United Companies Financial, 8.38%, 7/1/05.. 4,978
---------
112,654
---------
Utilities (4.6%):
10,000 Empresa Electric Delaware Norte, 7.75%,
3/15/06................................. 9,776
10,000 Korea Electric Power, 6.00%, 12/1/26....... 9,725
4,500 National Rural Collateral Trust, 6.70%,
6/15/02................................. 4,496
---------
23,997
---------
Capital Notes (5.9%):
5,000 American General Instit., 7.57%, 12/1/45... 4,763
8,000 Conseco Finance Trust III, 8.80%, 4/1/27... 8,210
12,000 MIC Financing Trusts, 8.38%, 2/1/27........ 11,985
5,500 TIG Capital Trust I, 8.60%, 1/15/27........ 5,610
---------
30,568
---------
Total Corporate Bonds 255,845
---------
</TABLE>
Continued
80
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Asset Backed Securities (7.0%):
$ 6,100 EQCC Home Equity Loan Trust, 5.73%,
12/15/08................................ $ 5,907
4,606 General Motors Acceptance Corp., 6.50%,
4/15/02................................. 4,622
11,000 Green Tree Financial Corp., 7.20%, 4/15/19. 11,157
3,614 Green Tree Home Improvement Loan Trust,
7.85%, 7/15/09.......................... 3,702
7,818 Lehman FHA - Title 1 Loan Trust, 6.78%,
3/25/08................................. 7,837
2,981 Structured Asset Securities Co., 7.50%,
8/25/26................................. 2,981
--------
Total Asset Backed Securities 36,206
--------
Collateralized Mortgage Obligations (1.7%):
Government Agency Backed CMO's (1.7%):
Federal National Mortgage Assoc.
4,952 9.00%, 7/25/20, Series 90-84, ............. 5,238
3,215 8.00%, 2/25/21 ........................... 3,320
--------
Total Collateralized Mortgage Obligations 8,558
--------
Adjustable Rate Preferred (2.0%):
Financial (2.0%):
400 SI Financing Trust I, 0.59%*, 6/30/26...... 10,575
--------
Total Adjustable Rate Preferred 10,575
--------
Total Investments, at value 505,617
--------
Total (Cost-- $516,673)(a) $519,774
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $518,337.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $552.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation .............................................................. $ 4,755
Unrealized depreciation .............................................................. (2,206)
--------
Net unrealized appreciation .......................................................... $ 2,549
========
</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 June 30, 1997.
See notes to financial statements.
81
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds (98.5%):
Arizona (3.4%):
$ 2,000 Phoenix, 6.00%, 7/1/01 ........................................................................... $ 2,118
1,050 Phoenix, 6.25%, 7/1/16 ........................................................................... 1,110
1,680 Salt River Project, 7.40%, 1/1/03 ................................................................ 1,738
---------
4,966
---------
California (1.6%):
1,760 Los Angeles Convention & Exhibit Center, 9.00%, 12/1/20 .......................................... 2,286
---------
Colorado (1.8%):
1,400 Colorado Water Resources & Power, 6.00%, 9/1/11 .................................................. 1,516
1,000 Metro Wastewater Reclamation, Series B, 6.75%, 4/1/01 ............................................ 1,080
---------
2,596
---------
Connecticut (2.8%):
1,770 Connecticut Clean Water Fund, 6.38%, 6/1/05 ...................................................... 1,960
2,000 Connecticut State Special Tax Obligation, 5.38%, 9/1/08 .......................................... 2,068
---------
4,028
---------
Delaware (0.8%):
1,000 Delaware Transportation Authority, 7.80%, 7/1/04 ................................................. 1,176
---------
Florida (8.0%):
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 .............................................. 2,233
1,430 Gainesville Utility Systems, Series A, 5.75%, 10/1/09 ............................................ 1,519
1,000 Gulf Breeze Florida Revenue, 4.80%, 12/1/17 ...................................................... 1,000
1,700 Hillsborough County Florida, 6.60%, 10/1/03 ...................................................... 1,808
2,015 Lakeland, Electric & Water Revenue Bond, 6.00%, 10/1/13 .......................................... 2,181
1,500 Seminole County Water & Sewer, 6.00%, 10/1/12 .................................................... 1,628
1,000 Tampa Florida Sports Authority Revenue, 6.00%, 1/1/06 ............................................ 1,076
---------
11,635
---------
Georgia (7.8%):
1,000 Atlanta Georgia Airport Facility, 6.25%, 1/1/05 .................................................. 1,089
1,500 Clayton County, 6.65%, 5/1/12 .................................................................... 1,659
1,200 Fayette County School District, G.O., 6.25%, 3/1/04 .............................................. 1,311
2,520 Georgia, 6.80%, 8/1/06 ........................................................................... 2,903
2,000 Georgia G.O., Series B, 7.20%, 3/1/01 ............................................................ 2,190
2,000 Georgia, Series B, 6.00%, 3/1/04 ................................................................. 2,163
---------
11,315
---------
Guam (1.1%):
1,505 Guam Government Highway Revenue, Series A, 5.90%, 5/1/02 ......................................... 1,597
---------
Hawaii (0.7%):
1,000 Honolulu Hawaii City & County, 5.80%, 1/1/07 ..................................................... 1,068
---------
Idaho (1.3%):
1,560 Canyon County School District, G.O., MBIA, 8.13%, 7/30/03 ........................................ 1,862
---------
Kansas (0.8%):
1,000 Department of Transportation & Highway, 7.25%, 3/1/04 ............................................ 1,155
---------
Maryland (5.3%):
1,000 Baltimore County, 5.70%, 7/1/99 .................................................................. 1,031
5,250 Maryland, Series 3, 6.60%, 7/15/00 ............................................................... 5,603
1,000 University of Maryland Auxiliary Facility & Tuition, 7.00%, 10/1/99 .............................. 1,058
---------
7,692
---------
</TABLE>
Continued
82
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds, continued:
Massachusetts (3.8%):
$ 1,000 Massachusetts Bay Transport Authority, Semi-Annual G.O., Series A, 7.00%, 3/1/08 ................. $ 1,166
2,000 Massachusetts State, 6.00%, 11/1/10 .............................................................. 2,178
1,000 Massachusetts State Health & Educational Facilities, 7.75%, 8/1/13 ............................... 1,057
1,000 Massachusetts Strategic, Series C, 6.00%, 8/1/09 ................................................. 1,088
---------
5,489
---------
Michigan (2.7%):
1,000 Dearborn School District, 8.38%, 5/1/02, Prerefunded 5/1/00 @ 102................................. 1,124
1,500 Michigan Strategic Fund, 7.10%, 2/1/06 ........................................................... 1,725
1,000 Western Michigan University, Series A, 6.50%, 7/15/21, Prerefunded 7/15/01 @ 102.................. 1,094
---------
3,943
---------
Minnesota (3.7%):
1,000 North Saint Paul Maplewood, 6.88%, 2/1/15, Prerefunded 2/1/05 @ 100............................... 1,140
3,000 Northern Municipal Power Agency OID, 7.25%, 1/1/16 ............................................... 3,179
1,000 Public Facilities Water & Pollution, 5.00%, 3/1/06 ............................................... 1,011
---------
5,330
---------
Mississippi (0.7%):
1,000 Mississippi State, 5.90%, 11/15/10 ............................................................... 1,074
---------
Missouri (4.9%):
1,000 Health & Educational Facility, 6.88%, 2/15/21 .................................................... 1,100
1,545 Missouri State Environmental Improvements, 6.00%, 1/1/07 ......................................... 1,676
1,000 Missouri State Environmental Resources Authority, 7.00%, 10/1/10 ................................. 1,089
1,000 Missouri, G.O., Series A, 6.00%, 4/1/02 .......................................................... 1,068
2,000 Sikeston, 6.00%, 6/1/13 .......................................................................... 2,158
---------
7,091
---------
Montana (0.8%):
1,010 Montana, G.O., Series A, 6.00%, 8/1/02 ........................................................... 1,083
---------
Nevada (1.5%):
2,000 Clark County Sanitation District, Series A, 6.75%, 7/1/09, Prerefunded 7/1/02 @ 101............... 2,210
---------
New Hampshire (2.1%):
3,000 Turnpike System, 8.38%, 11/1/17, Prerefunded 11/1/97 @ 102........................................ 3,103
---------
New Mexico (1.5%):
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05 ......................................................... 1,085
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07 ......................................................... 1,098
---------
2,183
---------
New York (6.4%):
1,050 Dormitory Authority, Series A, 5.75%, 7/1/10 ..................................................... 1,121
1,000 Muni Assistance Corp., 6.00%, 7/1/04 ............................................................. 1,074
2,110 Municipal Assistance Corp., 7.63%, 7/1/08, Callable On 7/1/99 @ 102............................... 2,284
2,000 New York, G.O., 8.00%, 4/1/03 .................................................................... 2,328
2,200 Westchester County, 6.70%, 11/1/05 ............................................................... 2,519
---------
9,326
---------
Ohio (3.7%):
1,230 Cleveland School District, 8.00%, 12/1/01, Callable 12/1/97 @ 100................................. 1,408
1,000 Franklin County, G.O., 6.80%, 12/1/11, Prerefunded 12/1/00 @ 102.................................. 1,095
1,000 Ohio State Highway Improvements, 5.00%, 5/1/06 ................................................... 1,016
1,715 Ohio State Water Revenue Bonds, 6.00%, 6/1/07 .................................................... 1,867
---------
5,386
---------
</TABLE>
Continued
83
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- --------
<S> <C> <C>
Municipal Bonds, continued:
Oregon (2.8%):
$ 1,000 Deschutes & Jefferson School District, G.O., 6.00%, 6/1/03 ....................................... $ 1,074
1,435 Lane County School District, G.O., 6.00%, 1/1/04 ................................................. 1,550
1,220 Washington County School District, 7.80%, 6/1/04 ................................................. 1,435
---------
4,059
---------
Pennsylvania (0.9%):
1,250 Philadelphia Pennsylvania Parking Authority, 5.75%, 9/1/08 ....................................... 1,333
---------
Puerto Rico (11.6%):
1,000 Puerto Rico - Series Y, 6.25%, 7/1/12 ............................................................ 1,113
1,000 Puerto Rico - Series Z, 6.25%, 7/1/15 ............................................................ 1,116
1,000 Puerto Rico Commonwealth, 8.00%, 7/1/06, Prerefunded 7/1/98 @ 102................................. 1,061
2,000 Puerto Rico Commonwealth, G.O., 6.25%, 7/1/09 .................................................... 2,230
5,000 Puerto Rico Electric Power Authority, 6.50%, 7/1/06 .............................................. 5,643
1,000 Puerto Rico Electric Power Authority, 7.00%, 7/1/07 .............................................. 1,170
2,000 Puerto Rico Electric Power Authority, MBIA, Series W, 6.50%, 7/1/05 .............................. 2,243
1,000 Puerto Rico, MBIA, 6.50%, 7/1/04 ................................................................. 1,111
1,000 University of Puerto Rico, 6.25%, 6/1/07 ......................................................... 1,115
---------
16,802
---------
Rhode Island (0.8%):
1,130 Rhode Island State, 5.00%, 8/1/06 ................................................................ 1,146
---------
South Carolina (1.0%):
1,250 Charleston County, MBIA, 6.25%, 1/1/07 ........................................................... 1,383
---------
South Dakota (0.8%):
1,000 Heartland Consumer Power District, 6.80%, 1/1/02 ................................................. 1,090
---------
Tennessee (3.2%):
1,435 Metro Government Nashville County, 5.25%, 5/15/07 ................................................ 1,480
1,000 Metropolitan Government Nashville & Davidson, Series B, 5.50%, 5/15/02 ........................... 1,043
2,000 Tennessee State, G.O., 6.00%, 5/1/05 ............................................................. 2,178
---------
4,701
---------
Texas (5.9%):
1,000 Dallas, 6.13%, 2/15/07 ........................................................................... 1,071
1,000 Dallas County, 5.00%, 8/15/04 .................................................................... 1,020
1,010 San Antonio Electric & Gas Texas, 7.00%, 2/1/09 .................................................. 1,064
5,000 Texas, 6.00%, 10/1/08 ............................................................................ 5,437
---------
8,592
---------
Vermont (1.5%):
2,000 Burlington Electric, MBIA, 6.25%, 7/1/11 ......................................................... 2,220
---------
Washington (2.0%):
1,000 King County, 6.10%, 12/1/01 ...................................................................... 1,007
1,000 Seattle, G.O., 7.00%, 3/1/02 ..................................................................... 1,105
750 Washington Public Power, 13.50%, 7/1/02, Callable 7/1/97 @ 100, Prerefunded 7/1/97 @ 100.......... 750
---------
2,862
---------
Wisconsin (0.8%):
1,000 Wisconsin Health & Education Facility, 7.63%, 4/1/19 ............................................. 1,076
---------
Total Municipal Bonds 142,858
---------
</TABLE>
Continued
84
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
- --------- ------------------------------------------------------------------------------------------------- --------
<S> <C> <C>
Alternative Minimum Tax Paper (0.3%):
Delaware (0.3%):
$ 500 Delaware State Economic Development Authority, 4.20%, 10/1/29* ................................... $ 500
---------
Total Alternative Minimum Tax Paper 500
---------
Investment Companies (0.1%):
94 Muni Cash Mutual Fund............................................................................. 94
---------
Total Investment Companies 94
---------
Total (Cost--$140,553) (a) $143,452
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $145,113.
(a) Represents cost for federal tax purposes and differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ......................................... $3,039
Unrealized depreciation ......................................... (140)
------
Net unrealized appreciation .................................... $2,899
======
</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 June 30, 1997.
GO -- General Obligation.
MBIA -- Insured by Municipal Bond Insurance Assoc.
OID -- Original Issue Discount.
See notes to financial statements.
85
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Michigan Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
or Share Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds (98.9%):
Michigan (91.4%):
$ 1,850 Avondale School District, 5.80%, 5/1/07, Callable 5/1/02 @ 102.................................... $ 1,931
1,380 Byron Center, Public Schools, 8.25%, 5/1/08, G.O., MBIA........................................... 1,761
1,380 Byron Center, Public Schools, 8.25%, 5/1/09, G.O., MBIA........................................... 1,772
1,500 Chippewa Valley School District, 8.10%, 5/1/99, G.O............................................... 1,603
2,375 Chippewa Valley School District, 7.80%, 5/1/01, G.O............................................... 2,653
1,000 Chippewa Valley School District, 7.00%, 5/1/11, Prerefunded 5/1/02 @ 102......................... 1,105
1,000 Clarkston Commerce Schools, 6.25%, 5/1/05 ........................................................ 1,100
1,100 Dearborn School District, 8.38%, 5/1/01, Prerefunded 5/1/00 @ 102................................. 1,236
1,600 Detroit, 6.25%, 7/15/11 .......................................................................... 1,762
1,000 Detroit Sewage Disposal Revenue, 6.00%, 7/1/10 ................................................... 1,075
1,000 Detroit Sewage Disposal Revenue, Series B, 6.00%, 7/1/09 ......................................... 1,080
1,275 Detroit Sewer, 6.20%, 7/1/02, Callable 7/1/01 @ 102............................................... 1,382
1,000 Detroit Sewer Disposal, 6.00%, 7/1/07 ............................................................ 1,086
1,000 Detroit Water, 6.50%, 7/1/15, FGIC................................................................ 1,120
2,000 Detroit Water, 7.88%, 7/1/19, Prerefunded 7/1/98 @ 102............................................ 2,117
2,000 Detroit Water Supply System, 5.40%, 7/1/10 ....................................................... 2,040
2,250 Detroit Water Supply Systems, Series B, 5.55%, 7/1/12, MBIA....................................... 2,311
2,000 Detroit, Revenue Bonds, 5.25%, 5/1/08, G.O., AMBAC................................................ 2,018
1,375 East Lansing Building Authority, 6.90%, 10/1/11 .................................................. 1,476
1,350 Ecorse Public School, 6.50%, 5/1/07 .............................................................. 1,512
1,125 Goodrich, Area School District, 7.65%, 5/1/11, G.O., MBIA, Callable 5/1/05 @ 102.................. 1,344
1,000 Grand Haven, Electric, 5.20%, 7/1/06, MBIA........................................................ 1,023
1,235 Grand Haven, Public Schools, 7.00%, 5/1/07, G.O., Callable 5/1/03 @ 102........................... 1,436
1,655 Grand Ledge, Public School District, 5.25%, 5/1/09 ............................................... 1,684
1,250 Grand Ledge, Public School District, 5.45%, 5/1/11, G.O., MBIA.................................... 1,280
1,200 Grand Rapids, 6.50%, 5/1/00, G.O.................................................................. 1,269
2,400 Grand Rapids, Public Schools, 8.00%, 5/1/99 ...................................................... 2,561
1,925 Grand Rapids, School District, 5.00%, 5/1/06, G.O., Callable 5/1/01 @ 102......................... 1,942
1,000 Grand Valley, Michigan State, 7.88%, 10/1/08 ..................................................... 1,064
1,500 Greater Detroit Resources Recovery, 6.25%, 12/13/08 .............................................. 1,663
1,000 Hartland, School District, 5.35%, 5/1/03, G.O..................................................... 1,043
1,570 Holland Electric, 6.25%, 7/1/01 .................................................................. 1,666
1,750 Holland Electric, 6.50%, 7/1/04, Prerefunded 7/1/99 @ 100......................................... 1,827
1,875 Holland Electric, 6.50%, 7/1/05, Prerefunded 7/1/99 @ 100......................................... 1,957
600 Holt, School District, 8.75%, 5/1/00, G.O......................................................... 668
600 Holt, School District, 8.75%, 5/1/01, G.O......................................................... 689
2,500 Huron Valley School District, 7.10%, 5/1/08, G.O., Callable 5/1/01 @ 102.......................... 2,771
1,000 Huron Valley, School District, 5.75%, 5/1/06 ..................................................... 1,065
1,650 Kalamazoo, 6.20%, 10/1/06, G.O., Callable 10/1/02 @ 101.5......................................... 1,770
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable 7/1/99 @ 100................................ 2,065
1,015 Kalamazoo Hospital Authority, Bronson Hospital, 5.63%, 5/15/01 ................................... 1,056
1,000 Kalamazoo Hospital Finance Authority, 5.63%, 7/1/00 .............................................. 1,034
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, 6.13%, 7/1/07, FGIC................. 2,130
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical Center, Series A, 6.00%, 6/1/03 ............ 2,135
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital, 5.88%, 5/15/03 ........................... 1,526
1,500 Kalamazoo, Hospital Authority, Series A, 6.25%, 6/1/14, FGIC...................................... 1,633
1,000 Kalamazoo, Public Library, 5.20%, 5/1/11 ......................................................... 1,003
1,300 Kenowa Hills, 5.50%, 5/1/04, G.O.................................................................. 1,359
1,120 Kent County, 8.00%, 12/1/98 ...................................................................... 1,182
1,250 Kent County Building Authority, 6.00%, 12/1/09 ................................................... 1,302
1,000 Kent County Hospital Authority, Butterworth Hospital, 7.25%, 1/15/12, Prerefunded 1/15/00 @ 102... 1,088
</TABLE>
Continued
86
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Michigan Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
or Share Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 5,000 Kent County Hospital Authority, Butterworth Hospital, Series A, 7.25%, 1/15/13 ................... $ 5,987
500 Kentwood Public Schools, 7.15%, 5/1/01, G.O....................................................... 535
1,000 Kentwood, School District, 5.90%, 5/1/04, G.O., Prerefunded 5/1/02 @ 102.......................... 1,063
1,000 Kentwood, School District, 7.15%, 5/1/07, G.O., Prerefunded 5/1/99 @ 102.......................... 1,070
2,000 Lake Orion, County School District, 7.00%, 5/1/20, G.O., Callable 5/1/5 @ 101..................... 2,310
1,000 Lanse Creuse Public Schools, 6.00%, 5/1/98 ....................................................... 1,018
1,000 Lansing Building Authority, 6.00%, 6/1/04 ........................................................ 1,061
2,000 Lansing School District, 6.88%, 5/1/09, G.O., Callable 5/1/05 @ 100............................... 2,228
1,335 Lansing, G.O., 6.00%, 1/1/07 ..................................................................... 1,447
1,000 Lansing, Michigan Light, 6.00%, 10/1/02, G.O...................................................... 1,066
1,000 Livonia, School District, 6.35%, 5/1/04, G.O., Callable 5/01/02 @ 102............................. 1,083
1,000 Local Government Loan Program, 6.20%, 5/1/04 ..................................................... 1,083
1,000 Michigan Building Authority, 6.25%, 10/1/00 ...................................................... 1,056
1,600 Michigan Comprehensive Transportation, Series B, 5.40%, 5/15/01 .................................. 1,652
1,525 Michigan Housing Development Authority, 5.75%, 10/1/04 ........................................... 1,599
1,000 Michigan Housing Development Authority, Series A, 6.45%, 6/1/04, Callable 6/1/02 @ 102............ 1,063
2,000 Michigan Municipal Bond Authority, 6.25%, 5/15/00 ................................................ 2,100
1,500 Michigan Municipal Bond Authority, 7.75%, 5/1/05, Prerefunded 5/1/98 @ 102........................ 1,577
1,000 Michigan Municipal Bond Authority, Detroit Schools State Aid, 6.70%, 11/1/99 ..................... 1,055
1,000 Michigan Municipal Bond Authority, Local Government Program, 6.90%, 5/1/99 ....................... 1,048
2,000 Michigan Municipal Bond Authority, Transportation Fund, 7.70%, 8/1/97 ............................ 2,006
1,000 Michigan State, 5.00%, 12/1/03, G.O............................................................... 1,021
3,475 Michigan State Building Authority, 6.25%, 10/1/03 ................................................ 3,774
1,000 Michigan State Building Authority, 7.25%, 10/1/08 ................................................ 1,064
1,850 Michigan State Building Authority, Detroit Regional Prisons, 7.10%, 10/1/98 ...................... 1,917
1,020 Michigan State Building Authority, Michigan University Adult General Hospital, 7.00%, 12/1/08 .... 1,141
1,000 Michigan State Building Authority, Series II, 6.40%, 10/1/04, Callable 10/1/01 @ 102.............. 1,079
2,300 Michigan State Comprehensive Transportation, 6.70%, 9/1/98 ....................................... 2,374
3,000 Michigan State Environmental Protection Program, 5.50%, 11/1/05, G.O.............................. 3,138
2,825 Michigan State Environmental Protection Program, 6.25%, 11/1/07, G.O.............................. 3,092
3,250 Michigan State Environmental Protection Program, 6.25%, 11/1/12, G.O.............................. 3,611
500 Michigan State Hospital Authority, Henry Ford, 6.00%, 9/1/11 ..................................... 538
2,000 Michigan State Hospital Authority, Henry Ford, 6.00%, 9/1/12, AMBAC............................... 2,138
1,135 Michigan State Hospital Finance Authority, Harper Grace Hospital, 7.12%, 5/1/09 .................. 1,275
1,200 Michigan State Hospital Finance Authority, Oakwood Hospital, Series A, 5.00%, 11/1/03 ............ 1,220
5,000 Michigan State Hospital Finance Authority, Sisters of Mercy, 5.38%, 8/15/14, MBIA................. 4,974
1,000 Michigan State Hospital Revenue Bonds, 6.00%, 8/15/02 ............................................ 1,055
1,000 Michigan State Housing Development, 6.63%, 10/15/06, Callable 10/15/02 @ 103...................... 1,079
1,055 Michigan State Power Agency, 5.70%, 11/1/04 ...................................................... 1,114
2,000 Michigan State Recreation Program, 5.75%, 11/1/01, G.O............................................ 2,100
2,000 Michigan State South Central Power Agency, 5.80%, 11/1/05 ........................................ 2,125
500 Michigan State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @ 102.............................. 536
1,005 Michigan State Trunk Line, 6.25%, 11/1/03 ........................................................ 1,093
1,000 Michigan State Trunk Line, 7.00%, 8/15/17, Callable 8/15/99 @ 102................................. 1,075
1,000 Michigan State Underground Storage, 6.00%, 5/1/05 ................................................ 1,079
1,000 Michigan State University, Series A, 5.70%, 8/15/03, Callable 8/15/02 @ 101....................... 1,056
3,000 Michigan Strategic Fund, (Detroit Edison), 7.00%, 7/15/08 ........................................ 3,517
2,000 Michigan Strategic Fund, (Detroit Edison), 6.95%, 5/1/11 ......................................... 2,344
4,450 Michigan Strategic Fund, (Ford), 7.10%, 2/1/06 ................................................... 5,117
2,075 Mona Shores School District, 6.75%, 5/1/09, G.O., FGIC, Callable 5/1/05 @ 102..................... 2,396
</TABLE>
Continued
87
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Michigan Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
or Share Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,000 Oakland County Community College, 6.65%, 5/1/11 .................................................. $ 1,106
1,000 Paw Paw, Public School District, 6.50%, 5/1/09, G.O., FGIC........................................ 1,133
1,000 Plymouth, School District, 6.50%, 5/1/05, Callable 5/1/01 @ 101*.................................. 1,075
1,300 Plymouth-Canton, 6.55%, 5/1/08, Callable 5/1/01 @ 101............................................. 1,406
1,000 Rochester, Community School District, 5.25%, 5/1/04 .............................................. 1,029
2,000 Rochester, School District, 6.30%, 5/1/04, Callable 5/1/02 @ 100.................................. 2,150
1,000 Rochester, School District, 6.50%, 5/1/07 ........................................................ 1,084
1,000 Rochester, School District, 6.50%, 5/1/08, Callable 5/1/02 @ 100.................................. 1,084
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02 @ 102.................................... 1,179
1,000 Royal Oak, Hospital Authority, 7.25%, 1/1/09, Callable 1/1/99 @ 102*.............................. 1,064
1,145 Royal Oak, Hospital Authority, William Beaumont, 7.00%, 1/1/98 ................................... 1,162
4,500 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, 7.38%, 1/1/20, Prerefunded
1/1/99 @ 102.................................................................................... 4,797
2,120 Royal Oak, Hospital Financial Authority, William Beaumont Hospital, Series G, 6.00%, 11/15/02 .... 2,247
1,000 Traverse City, Public Schools, 7.00%, 5/1/05, Prerefunded 5/1/01 @ 101.5.......................... 1,101
400 Traverse City, School District, 9.00%, 5/1/99 .................................................... 435
1,000 Troy School District, 7.75%, 5/1/01, Callable 5/1/00 @ 102, Prerefunded 5/1/00 @ 102.............. 1,109
500 University of Michigan, 6.00%, 4/1/05 ............................................................ 541
2,000 University of Michigan Hospital Revenue Bonds, 7.00%, 12/1/21, Callable 12/1/00 @ 102*............ 2,198
2,000 University of Michigan Hospitals Series A, 4.05%, 12/1/27** ...................................... 2,000
1,000 University of Michigan Student Fees, 5.00%, 4/1/02 ............................................... 1,024
1,315 University of Michigan Student Fees - Series A, 6.00%, 4/1/06 .................................... 1,425
2,000 University of Michigan Student Fees, Series B, 5.60%, 4/1/08, Callable 4/1/03 @ 102............... 2,088
1,975 Utica, School District, 5.60%, 5/1/05 ............................................................ 2,071
285 Wayne County Michigan Airport Revenue AMT, 7.25%, 12/1/10 ........................................ 311
2,000 Wayne County, Building Authority, 6.00%, 6/1/07, Callable On 6/1/06 @ 102......................... 2,158
1,680 Western Michigan School District., 5.90%, 5/1/10, MBIA............................................ 1,796
1,500 Western Michigan University, Series A, 5.40%, 7/15/08, Callable 7/15/03 @ 105..................... 1,536
1,000 Western Township Utilities Authority, 6.00%, 1/1/00 .............................................. 1,040
1,000 Western Townships Utilities Authority, 6.10%, 1/1/01 ............................................. 1,053
1,000 Wyandotte City, School District, 6.90%, 5/1/16, G.O., Prerefunded 5/1/1 @ 102..................... 1,101
3,000 Wyandotte Electric Revenue, 6.25%, 10/1/08, MBIA.................................................. 3,322
---------
216,349
---------
Puerto Rico (7.5%):
2,000 Puerto Rico Commonwealth, 6.25%, 7/1/09, G.O...................................................... 2,230
2,000 Puerto Rico Commonwealth, 6.25%, 7/1/10, G.O...................................................... 2,233
500 Puerto Rico Commonwealth, 6.25%, 7/1/12, G.O...................................................... 556
1,000 Puerto Rico Commonwealth Aqueduct & Sewer Authority, 6.00%, 7/1/07, MBIA.......................... 1,093
1,425 Puerto Rico Commonwealth Highway & Transportation, 6.25%, 7/1/14 ................................. 1,582
1,250 Puerto Rico Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA............................... 1,402
1,000 Puerto Rico Electric Power Authority, Series Y, 6.50%, 7/1/06, MBIA............................... 1,125
4,000 Puerto Rico Public Buildings Authority, 5.50%, 7/1/07, FSA........................................ 4,194
1,000 Puerto Rico Public Buildings Authority, Series A, 6.25%, 7/1/15, AMBAC............................ 1,113
1,000 Puerto Rico, Series Z, 6.25%, 7/1/15 ............................................................. 1,116
1,000 University of Puerto Rico., 6.25%, 6/1/07 ........................................................ 1,115
---------
17,759
---------
Total Municipal Bonds 234,108
---------
</TABLE>
Continued
88
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Michigan Municipal Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal
or Share Security Market
Amount Description Value
- --------- -------------------------------------------------------------------------------------------------- ---------
<S> <C> <C>
Investment Companies (0.0%):
$ 99 Federated Michigan Tax Free Money Market.......................................................... $ 99
---------
Total Investment Companies 99
---------
Total (Cost--$225,386) (a) $234,207
=========
</TABLE>
- -------------
Percentages indicated are based on net assets of $236,755.
(a) Represents cost for financial reporting purposes and differs from cost basis
for federal income tax purposes by the amount of losses recognized for
financial reporting in excess of federal income tax reporting of $19. Cost
for federal income tax purposes differs from market value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ............................................... $8,953
Unrealized depreciation ............................................... (151)
------
Net unrealized appreciation .......................................... $8,802
======
</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 June 30, 1997.
See notes to financial statements.
89
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Conservative Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Common Stocks (30.0%):
Broadcasting (0.5%):
600 British Sky Broadcasting-ADR................ $ 27
600 Canwest Global Communications Corp.......... 9
100 Clear Channel Communications, Inc.(b)....... 6
200 Evergreen Media Corp.(b).................... 9
--------
51
--------
Building Products (0.0%):
200 Royal Group Technologies Ltd.(b)............ 5
--------
Business Services (0.6%):
200 Analog Devices, Inc.(b)..................... 5
500 Automatic Data Processing, Inc.............. 24
200 Cambridge Technology Partners, Inc.(b)...... 6
100 Cintas Corp................................. 7
300 Paychex, Inc................................ 11
200 SunGard Data Systems, Inc.(b)............... 9
--------
62
--------
Chemicals (0.3%):
800 Monsanto Co................................. 34
--------
Communications Equipment (0.4%):
600 Lucent Technologies, Inc.................... 43
--------
Computer Hardware (0.5%):
400 Hewlett Packard Co.......................... 22
100 Sanmina Corp.(b)............................ 6
700 Sun Microsystems, Inc.(b)................... 26
--------
54
--------
Computer Software (3.4%):
200 Baan Co. Nv(b).............................. 14
500 BMC Software, Inc.(b)....................... 28
200 Cadence Design Systems, Inc.(b)............. 7
100 CBT Group PLC(b)............................ 6
2,000 First Data Corp............................. 88
200 McAfee Associates, Inc.(b).................. 13
500 Microsoft, Inc.(b).......................... 63
1,200 Oracle Corp.(b)............................. 60
500 Parametric Technology Corp.(b).............. 21
900 Peoplesoft, Inc.(b)......................... 47
--------
347
--------
Computers & Peripherals (1.1%):
800 3Com Corp.(b)............................... 36
1,100 Cisco Systems, Inc.(b)...................... 74
--------
110
--------
Consumer Goods & Services (1.2%):
100 Apollo Group, Inc.(b)....................... 4
1,300 CUC International Inc.(b)................... 34
500 Nike Inc.................................... 29
400 Procter & Gamble Co......................... 57
100 U.S. Rentals, Inc.(b)....................... 3
--------
127
--------
Correctional Facilities (0.1%):
300 Corrections Corp. of America(b)............. 12
--------
Cosmetics (0.6%):
600 Gillette Co................................. 57
--------
Data Processing & Reproduction (0.2%):
100 Electronics for Imaging(b).................. 5
300 Fiserv, Inc.(b)............................. 13
--------
18
--------
Diversified (0.3%):
700 Cognizant Corp.............................. 28
--------
Diversified Operations (0.2%):
350 Tyco Laboratories, Inc...................... 24
--------
Educational Services (0.0%):
100 Sylvan Learning Systems, Inc.(b)............ 3
--------
Electrical & Electronic (0.9%):
900 Emerson Electric............................ 50
600 General Electric Co......................... 39
125 Molex, Inc.................................. 4
--------
93
--------
Entertainment (0.5%):
1,100 Carnival Cruise Lines....................... 45
200 Hollywood Entertainment Corp.(b)............ 5
100 Regal Cinemas, Inc.(b)...................... 3
--------
53
--------
Environmental Services (0.1%):
200 United Waste Systems, Inc.(b)............... 8
--------
Financial Services (3.0%):
500 American Express Co......................... 37
700 Associates First Capital.................... 39
400 Concord EFS, Inc.(b)........................ 10
100 ContiFinancial Corp.(b)..................... 4
200 Credit Acceptance Corp.(b).................. 3
1,700 Fannie Mae.................................. 74
100 Finova Group, Inc........................... 8
200 FIRSTPLUS Financial Group, Inc.(b).......... 7
900 Green Tree Financial Corp................... 32
300 Household International..................... 35
1,200 MBNA Corp................................... 44
150 Nationwide Financial Services............... 4
300 The Money Store, Inc........................ 9
--------
306
--------
Food & Beverage (0.8%):
500 Mc Donald's Corp............................ 24
</TABLE>
Continued
90
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Conservative Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Common Stocks, continued:
Food & Beverage, continued:
800 The Coca-Cola Co............................ $ 56
--------
80
--------
Food & Household Products (0.0%):
100 Sunbeam Corp................................ 4
--------
Food Processing & Packaging (0.4%):
400 CPC International, Inc...................... 37
--------
Food Products & Services (0.2%):
350 Safeway, Inc.(b)............................ 16
--------
Forest & Paper Products (0.4%):
900 Kimberly Clark Corp......................... 45
--------
Funeral Services (0.6%):
1,500 Service Corp. International................. 49
200 Stewart Enterprises......................... 8
--------
57
--------
Health & Personal Care (0.0%):
200 Alberto-Culver Co........................... 5
--------
Health Care-Drugs (1.0%):
400 Eli Lilly & Co.............................. 44
500 Pfizer, Inc................................. 60
--------
104
--------
Health Care - Services (1.1%):
700 Baxter International, Inc................... 37
600 Columbia/HCA Healthcare Corp................ 24
200 Dura Pharmaceuticals, Inc.(b)............... 8
700 HEALTHSOUTH Corp.(b)........................ 17
500 Omnicare, Inc............................... 16
200 PhyCor, Inc.(b)............................. 7
100 Quintiles Transnational Corp.(b)............ 7
--------
116
--------
Hotels & Lodging (2.3%):
1,300 Hilton Hotels Corp.......................... 35
2,600 Hospitality Franchise Systems(b)............ 151
700 Marriott International, Inc................. 43
200 Sun International Hotel(b).................. 7
--------
236
--------
Industrial Goods & Services (0.8%):
200 Clorox Co................................... 26
700 United Technologies Corp.................... 58
--------
84
--------
Insurance (1.6%):
400 American International Group, Inc........... 60
200 HCC Insurance Holdings, Inc................. 5
600 March & Mclennan Cos., Inc.................. 43
1,150 SunAmerica, Inc............................. 56
--------
164
--------
Manufacturing - Consumer Goods (0.1%):
300 Newell Co................................... 12
--------
Medical Equipment & Supplies (0.9%):
400 Boston Scientific Corp.(b).................. 25
100 Guidant Corp................................ 9
700 Medtronic, Inc.............................. 57
--------
91
--------
Medical - Biotechnology (0.0%):
100 Biogen, Inc.(b)............................. 3
--------
Medical - Hospital Management & Services (0.1%):
400 Health Management Associates, Inc.(b)....... 11
--------
Multiple Industry (0.2%):
400 Corning Glass............................... 22
--------
Office Equipment & Services (0.4%):
500 Xerox Corp.................................. 39
--------
Pharmaceuticals (1.2%):
400 Johnson & Johnson........................... 26
600 Merck & Co., Inc............................ 62
300 Warner-Lambert Co........................... 37
--------
125
--------
Retail Stores (1.2%):
100 CDW Computer Centers, Inc.(b)............... 5
250 Consolidated Stores(b)...................... 9
100 Dollar General.............................. 4
200 MSC Industrial Direct Co., Inc.(b).......... 8
100 Saks Holdings, Inc.(b)...................... 3
800 Sears Roebuck............................... 43
200 U.S. Office Products Co.(b)................. 6
800 Walgreen Co................................. 43
--------
121
--------
Retail Stores - Specialty (0.5%):
700 Home Depot, Inc............................. 48
--------
Semiconductors (0.6%):
200 Applied Materials, Inc.(b).................. 14
300 Intel Corp.................................. 43
--------
57
--------
Technology - Software (0.1%):
100 Computer Science(b)......................... 7
--------
Telecommunications (0.2%):
900 AirTouch Communications, Inc.(b)............ 25
--------
Telecommunications - Services & Equipment (0.6%):
100 Cascade Communications Corp.(b)............. 3
300 Fore Systems, Inc.(b)....................... 4
100 PairGain Technologies, Inc.(b).............. 2
750 Tellabs, Inc.(b)............................ 42
</TABLE>
91
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Conservative Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- --------------------------------------------- ----------
<S> <C> <C>
Common Stocks, continued:
Telecommunications - Services & Equipment, continued:
400 West TeleServices Corp.(b).................. $ 6
--------
57
--------
Telephone Long Distance (0.3%):
900 Worldcom, Inc.(b)........................... $ 29
--------
Wholesale Distribution (0.1%):
400 Richfood Holdings, Inc...................... 10
--------
Wholesale Distribution - Pharmaceuticals (0.4%):
800 Cardinal Health, Inc........................ 46
--------
Total Common Stocks 3,086
--------
Corporate Bonds (15.6%):
Automotive Finance (2.4%):
75,000 Ford Motor Credit, 7.50%, 6/15/04 .......... 77
175,000 General Motors Acceptance Corp., 5.70%,
2/9/99 .................................. 173
--------
250
--------
Financial Services (7.5%):
150,000 Banc One Auto Grantor Trust, 6.27%,
11/20/03 ................................ 150
150,000 Cit Group Holdings, 6.25%, 3/22/99 ......... 150
200,000 Discover Card Master Trust, 6.05%, 8/18/08 . 189
60,000 John Deere Capital, 6.00%, 2/1/99 .......... 60
100,000 Salomon, Inc., 7.20%, 2/1/04 ............... 100
125,000 Securitized Asset Sales, Inc., 7.53%,
3/25/24 ................................. 126
--------
775
--------
Foreign Governments (3.2%):
125,000 Province Of Ontario, 7.38%, 1/27/03 ........ 128
175,000 Quebec Province, 13.00%, 10/1/13 ........... 196
--------
324
--------
Industrial Goods And Services (1.5%):
150,000 Honeywell, Inc., 6.75%, 3/15/02 ............ 150
--------
Transportation & Shipping (1.0%):
105,000 Norfolk Southern Corp., 6.95%, 5/1/02 ...... 106
--------
Total Corporate Bonds 1,605
--------
U.S. Treasury Notes (47.1%):
2,150,000 5.63%, 1/31/98.............................. 2,149
965,000 6.50%, 8/31/01.............................. 968
535,000 5.88%, 2/15/04.............................. 519
950,000 7.00%, 7/15/06.............................. 976
230,000 6.63%, 5/15/07.............................. 232
--------
Total U.S. Treasury Notes 4,844
--------
Total Investments, at value 9,535
--------
Repurchase Agreements (6.2%):
642,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $684,486 FHLMC,
6.55%, 8/15/22, market value--$655)....... 642
--------
Total Repurchase Agreements 642
--------
Total (Cost--$9,842) $10,177
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $10,287.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $4.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
Unrealized appreciation ........................... $ 426
Unrealized depreciation ........................... (95)
======
Net unrealized appreciation ....................... $ 331
======
(b) Represents non-income producing securities.
Continued
92
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks (40.9%):
Advertisement (0.1%):
13,650 HA-LO Industries, Inc.(b).................. $ 322
--------
Broadcasting (0.4%):
33,300 Canwest Global Communications Corp......... 493
4,700 Clear Channel Communications, Inc.(b)...... 289
10,000 Evergreen Media Corp.(b)................... 446
--------
1,228
--------
Broadcasting & Publishing (0.2%):
11,800 British Sky Broadcasting Group-ADR......... 527
--------
Building Products (0.1%):
13,100 Royal Plastics Group(b).................... 347
--------
Business Services (2.5%):
10,900 Automatic Data Processing, Inc............. 512
30,800 Cambridge Technology Partners, Inc.(b)..... 986
6,450 Cintas Corp................................ 443
54,150 Concord EFS, Inc.(b)....................... 1,401
3,900 Envoy Corp.(b)............................. 130
6,200 F.Y.I., Inc.(b)............................ 149
7,300 Healthcare Recoveries, Inc.(b)............. 141
7,500 IntelliQuest Information Group, Inc.(b).... 169
7,800 International Telecommunication Data
Systems, Inc.(b)........................ 191
9,400 Iron Mountain, Inc.(b)..................... 282
4,900 NCO Group, Inc.(b)......................... 144
3,100 Nova Corp. (Georgia)(b).................... 80
20,100 Paychex.................................... 764
14,800 PMT Services, Inc.(b)...................... 226
7,100 Registry, Inc.(b).......................... 327
2,500 RWD Technologies(b)........................ 43
6,500 Staff Leasing, Inc.(b)..................... 122
12,500 SunGard Data Systems Inc.(b)............... 581
--------
6,691
--------
Chemicals (0.3%):
16,700 Monsanto Co................................ 719
--------
Commercial Goods & Services (0.1%):
5,800 Apollo Group Inc.(b)....................... 204
--------
Computer Hardware (0.8%):
5,700 ACT Manufacturing, Inc.(b)................. 238
7,100 Apex PC Solutions, Inc.(b)................. 140
9,800 Harmonic Lightwaves, Inc.(b)............... 168
7,900 Larscom, Inc.(b)........................... 85
3,300 Ontrack Data International(b).............. 76
16,400 Sanmina Corp.(b)........................... 1,041
14,000 Sun Microsystems, Inc.(b).................. 521
--------
2,269
--------
Computer Software (5.2%):
11,100 Aspen Technologies, Inc.(b)................ 418
10,300 Baan Co. NV(b)............................. 709
20,400 BMC Software, Inc.(b)...................... 1,130
12,600 Cadence Design Systems, Inc.(b)............ 422
6,700 CBT Group PLC(b)........................... 423
8,200 Computer Sciences(b)....................... 591
9,700 Deltek Systems, Inc.(b).................... 165
33,386 First Data Corp............................ 1,467
8,400 INSO Corp.(b).............................. 173
10,900 JDA Software Group, Inc.(b)................ 372
14,600 McAfee Associates, Inc.(b)................. 922
11,100 Microsoft, Inc.(b)......................... 1,403
24,300 Oracle Corp.(b)............................ 1,224
20,800 Parametric Technology Corp.(b)............. 885
10,200 Pegasystems, Inc.(b)....................... 320
30,300 Peoplesoft, Inc.(b)........................ 1,598
5,200 Scopus Technology, Inc.(b)................. 116
19,800 Systemsoft Corp.(b)........................ 213
10,450 Veritas Software Corp.(b).................. 525
7,400 Viasoft, Inc.(b)........................... 376
8,500 Visio Corp.(b)............................. 599
--------
14,051
--------
Computers & Peripherals (0.6%):
8,500 3 Com Corp.(b)............................. 383
17,800 Cisco Systems, Inc.(b)..................... 1,195
--------
1,578
--------
Consumer Goods & Services (1.0%):
26,550 CUC International, Inc.(b)................. 685
10,500 Nike, Inc.................................. 613
8,800 Procter & Gamble Co........................ 1,243
6,600 U.S. Rentals, Inc.(b)...................... 167
--------
2,708
--------
Correctional Facilities (0.4%):
14,700 Corrections Corp. of America(b)............ 584
14,100 Wackenhut Corrections Corp.(b)............. 411
--------
995
--------
Cosmetics (0.4%):
12,100 Gillette Co................................ 1,146
--------
Cosmetics & Toiletries (0.2%):
11,150 Rexall Sundown, Inc.(b).................... 435
--------
Data Processing & Reproduction (0.3%):
3,300 Electronics for Imaging, Inc.(b)........... 156
14,900 Fiserv, Inc.(b)............................ 665
--------
821
--------
Diversified (0.2%):
14,000 Cognizant Corp............................. 567
--------
Diversified Operations (0.2%):
8,800 Tyco Laboratories, Inc..................... 612
--------
</TABLE>
93
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Education (0.1%):
6,700 Sylvan Learning Systems, Inc.(b)........... $ 228
--------
Electrical & Electronics (1.3%):
6,500 Advanced Lighting Technologies, Inc.(b).... 164
12,700 Analog Devices, Inc.(b).................... 337
8,300 Applied Materials, Inc.(b)................. 588
19,400 Emerson Electric........................... 1,068
13,400 General Electric Co........................ 876
12,957 Molex, Inc................................. 452
--------
3,485
--------
Entertainment (0.9%):
35,700 Carnival Corp.............................. 1,473
9,500 Hollywood Entertainment Corp.(b)........... 217
23,600 Regal Cinemas, Inc.(b)..................... 779
--------
2,469
--------
Environmental Services (0.2%):
11,000 United Waste Systems, Inc.(b).............. 451
--------
Financial Services (3.8%):
14,400 American Express Co........................ 1,073
16,300 Associates First Capital................... 905
4,400 Central Financial Acceptance Corp.(b)...... 49
5,200 ContiFinancial Corp.(b).................... 190
37,700 Credit Acceptance Corp.(b)................. 485
34,500 Fannie Mae................................. 1,505
7,000 Finova Group, Inc.......................... 536
8,600 First Alliance Corp.(b).................... 252
11,500 FIRSTPLUS Financial Group(b)............... 391
28,600 Green Tree Financial Corp.................. 1,019
7,600 Household International, Inc............... 893
29,164 Imperial Credit Industries, Inc.(b)........ 600
26,200 MBNA Corp.................................. 960
8,000 Metris Cos., Inc........................... 263
18,500 Money Store, Inc. (The).................... 531
14,000 Nationwide Financial Services.............. 372
4,600 Sirrom Capital Corp........................ 159
--------
10,183
--------
Food & Beverages (0.6%):
10,100 McDonald's Corp............................ 488
17,600 The Coca-Cola Co........................... 1,228
--------
1,716
--------
Food & Household Products (0.1%):
6,600 Sunbeam Corp............................... 249
--------
Food Processing & Packaging (0.3%):
8,600 CPC International, Inc..................... 794
--------
Food Products & Services (0.2%):
5,500 Fine Host Corp.(b)......................... 173
7,900 Safeway, Inc.(b)........................... 364
--------
537
--------
Forest & Paper Products (0.4%):
20,500 Kimberly Clark Corp........................ 1,020
--------
Funeral Services (0.8%):
11,100 Equity Corp. International(b).............. 268
49,600 Service Corp. International................ 1,631
9,500 Stewart Enterprises........................ 399
--------
2,298
--------
Health & Personal Care (0.1%):
10,600 Alberto-Culver Co.(b)...................... 247
--------
Health Care (0.5%):
16,900 Baxter International, Inc.................. 883
12,550 Columbia/HCA Healthcare Corp............... 493
--------
1,376
--------
Health Care - Drugs (0.8%):
9,000 Eli Lilly & Co............................. 984
10,300 Pfizer, Inc................................ 1,231
--------
2,215
--------
Health Care - Services (2.3%):
8,000 American Medserve Corp.(b)................. 104
7,400 American Oncology Resources(b)............. 125
32,000 Dura Pharmaceuticals, Inc.(b).............. 1,276
9,600 Jones Medical Industries, Inc.............. 456
7,100 MedQuist, Inc.(b).......................... 216
11,800 NCS HealthCare, Inc.-Class A(b)............ 358
11,200 OccuSystems, Inc.(b)....................... 325
34,100 Orthodontic Centers of America, Inc.(b).... 620
13,800 Parexel International Corp.(b)............. 438
28,075 PhyCor, Inc.(b)............................ 967
9,500 Quintiles Transnational Corp.(b)........... 661
13,450 Serologicals Corp.(b)...................... 309
11,600 Total Renal Care Holdings, Inc.(b)......... 466
--------
6,321
--------
Hotels & Gaming (0.2%):
11,500 Signature Resorts, Inc.(b)................. 397
13,100 Vistana, Inc.(b)........................... 203
--------
600
--------
Hotels & Lodging (1.3%):
21,700 Hilton Hotels Corp......................... 576
30,800 Hospitality Franchise Systems(b)........... 1,786
12,500 Marriott International, Inc................ 767
12,000 Sun International Hotel(b)................. 443
--------
3,572
--------
Industrial Goods & Services (0.7%):
4,200 Clorox Co.................................. 554
17,500 United Technologies Corp................... 1,453
--------
2,007
--------
</TABLE>
94
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Insurance (1.6%):
8,300 American International Group, Inc.......... $ 1,240
11,700 Amerin Corp.(b)............................ 284
10,900 HCC Insurance Holdings, Inc................ 291
14,400 Marsh & McLennan Cos., Inc................. 1,028
30,200 SunAmerica, Inc............................ 1,472
--------
4,315
--------
Machinery & Equipment (0.1%):
9,300 Rental Service Corp.(b).................... 244
--------
Manufacturing (0.8%):
24,300 Miller Industries, Inc.(b)................. 389
54,400 Omnicare, Inc.............................. 1,707
--------
2,096
--------
Manufacturing - Consumer Goods (0.7%):
49,900 HEALTHSOUTH Corp.(b)....................... 1,244
15,300 Newell Co.................................. 606
--------
1,850
--------
Medical - Biotechnology (0.1%):
7,600 Biogen, Inc.(b)............................ 257
--------
Medical Equipment & Supplies (1.1%):
9,800 Boston Scientific Corp.(b)................. 602
2,400 Guidant Corp............................... 204
13,400 Henry Schein, Inc.(b)...................... 419
13,800 Medtronic, Inc............................. 1,118
8,600 Molecular Devices Corp.(b)................. 151
5,200 Sabratek Corp.(b).......................... 146
4,900 Spine-tech, Inc.(b)........................ 182
17,200 Urohealth Systems, Inc.(b)................. 103
--------
2,925
--------
Medical - Hospital Management & Services (0.2%):
22,100 Health Management Associates(b)............ 630
--------
Multiple Industry (0.1%):
7,400 Corning Glass.............................. 412
--------
Office Equipment & Services (0.5%):
9,700 Hewlett Packard Co......................... 543
9,700 Xerox Corp................................. 765
--------
1,308
--------
Oil & Gas Exploration Products & Services (0.1%):
12,000 YPF Sociedad Anonima, ADR.................. 369
--------
Pharmaceuticals (1.2%):
9,100 Johnson & Johnson.......................... 586
13,050 Merck & Co., Inc........................... 1,351
5,900 Teva Pharmaceutical, ADR................... 382
8,500 Warner-Lambert Co.......................... 1,056
--------
3,375
--------
Restaurants (0.1%):
16,000 Landry's Seafood Restaurants, Inc.(b)...... 368
--------
Retail Stores (2.0%):
10,000 CDW Computer Center, Inc.(b)............... 531
5,900 Dollar General............................. 221
13,500 Just For Feet, Inc.(b)..................... 235
12,200 Men's Warehouse, Inc.(b)................... 384
11,400 MSC Industrial Direct Co., Inc.(b)......... 457
12,575 Petco Animal Supplies, Inc.(b)............. 377
11,800 Renter's Choice, Inc.(b)................... 235
8,500 Saks Holdings, Inc.(b)..................... 213
19,100 Sears Roebuck & Co......................... 1,027
14,100 U.S. Office Products Co.(b)................ 431
17,800 Walgreen Co................................ 955
13,100 West Marine, Inc.(b)....................... 337
--------
5,403
--------
Retail Stores & Catalog (0.2%):
14,781 Consolidated Stores(b)..................... 514
--------
Retail Stores - Specialty (0.4%):
14,650 Home Depot, Inc............................ 1,010
--------
Technology (0.4%):
7,100 Intel Corp................................. 1,007
--------
Telecommunications (1.3%):
20,000 AirTouch Communications, Inc.(b)........... 548
11,800 Cia De Telecomunicaciones De Chile SA, ADR.
389
4,500 Oy Nokia................................... 332
7,100 Pacific Gateway Exchange, Inc.(b).......... 201
11,000 Portugal Telecommunication SA, ADR......... 441
5,200 Telco Communications Group, Inc.(b)........ 169
4,800 Telecommunicacoes Brasileiras, ADR......... 728
20,000 WorldCom, Inc.(b).......................... 640
--------
3,448
--------
Telecommunications - Services & Equipment (1.3%):
4,300 Cascade Communications(b).................. 119
19,800 Fore Systems, Inc.(b)...................... 270
13,900 Lucent Technologies, Inc................... 1,002
6,000 Newbridge Networks Corp.(b)................ 261
7,300 Pairgain Technologies, Inc.(b)............. 113
24,800 Tellabs, Inc.(b)........................... 1,386
22,900 West TeleServices Corp.(b)................. 338
--------
3,489
--------
Wholesale Distribution (1.1%):
7,600 Barnett, Inc.(b)........................... 186
18,483 Brightpoint, Inc.(b)....................... 602
27,700 Cardinal Health, Inc....................... 1,586
</TABLE>
95
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks, continued:
Wholesale Distribution, continued:
20,350 Richfood Holdings, Inc..................... $ 529
--------
2,903
--------
Total Common Stocks 110,911
--------
Foreign Stocks (9.4%):
Australia (0.3%):
Beverages & Tobacco (0.0%):
78,500 Foster's Brewing Group Ltd................. 145
--------
Construction (0.0%):
25,000 Leighton Holdings.......................... 121
--------
Diversified (0.1%):
26,487 Smith (Howard) Ltd......................... 250
--------
Insurance (0.1%):
27,393 QBE Insurance Group Ltd.................... 164
--------
Pharmaceuticals (0.1%):
34,500 CSL Ltd.................................... 210
--------
Total Australia 890
--------
Austria (0.1%):
Engineering (0.1%):
800 VA Technologie AG.......................... 146
--------
Total Austria 146
--------
Belgium (0.2%):
Retail Stores/Catalog (0.2%):
1,000 Colruyt SA................................. 488
--------
Total Belgium 488
--------
Brazil (0.1%):
Beverages & Tobacco (0.1%):
9,500 Companhia Cervejaria Brahma, ADR........... 147
--------
Total Brazil 147
--------
Canada (0.3%):
Computer Software (0.0%):
7,900 Discreet Logic, Inc.(b).................... 130
--------
Electronic Components/Instruments (0.1%):
19,500 CAE, Inc................................... 155
--------
Manufacturing - Consumer Goods (0.1%):
18,200 Bombardier, Inc. Class B................... 413
--------
Natural Resources (0.1%):
7,000 Canadian Natural Resources Ltd.(b)......... 182
--------
Total Canada 880
--------
Denmark (0.2%):
Food Products & Services (0.2%):
7,500 Danisco A/S................................ 459
--------
Total Denmark 459
--------
Finland (0.0%):
Diversified (0.0%):
3,000 Huhtamaki Group............................ 129
--------
Total Finland 129
--------
France (0.7%):
Consumer Goods & Services (0.5%):
1,700 Clarins.................................... 226
4,800 Hermes International....................... 450
4,000 Societe BIC SA............................. 655
--------
1,331
--------
Engineering (0.1%):
780 Altran Technologies........................ 255
--------
Machinery & Equipment (0.1%):
3,800 Sidel SA................................... 295
--------
Total France 1,881
--------
Germany (0.8%):
Engineering (0.2%):
1,030 Mannesmann AG.............................. 460
--------
Health Care (0.2%):
4,700 Schering AG................................ 504
--------
Manufacturing - Consumer Goods (0.2%):
4,420 Adidas AG.................................. 495
--------
Medical Equipment & Supplies (0.1%):
1,850 Fresenius AG............................... 420
--------
Pharmaceuticals (0.1%):
6,800 Merck KGaA................................. 297
--------
Total Germany 2,176
--------
Hong Kong (0.2%):
Gas & Electric Utility (0.1%):
147,160 Hong Kong & China Gas Co., Ltd............. 294
--------
Real Estate (0.1%):
16,500 Henderson Land Development Co. Ltd......... 146
18,600 Sun Hung Kai Properties Ltd................ 224
--------
370
--------
Total Hong Kong 664
--------
Indonesia (0.1%):
Banking & Financial Services (0.1%):
178,108 Bank Internasional Indonesia............... 154
--------
Tobacco (0.0%):
6,400 PT Hanjaya Mandala Sampoema(b)............. 24
--------
Total Indonesia 178
--------
</TABLE>
Continued
96
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Foreign Stocks, contined:
Israel (0.1%):
Medical Equipment & Supplies (0.1%):
9,800 ESC Medical Systems Ltd.(b)................ $ 250
--------
Total Israel 250
--------
Italy (0.2%):
Electronic Components/Instruments (0.1%):
6,500 Gewiss SpA................................. 112
--------
Jewelry (0.1%):
60,000 Bulgari SpA................................ 339
--------
Optical Supplies (0.0%):
2,000 Safilo SpA................................. 46
--------
Total Italy 497
--------
Japan (2.7%):
Chemicals (0.0%):
26,000 Takasago International..................... 157
--------
Computer Software (0.2%):
9,000 TDK Corp................................... 661
--------
Electrical & Electronic (0.7%):
3,500 Keyence Corp............................... 520
15,000 Matsushita Electric Works.................. 170
14,000 Omron Corp................................. 297
8,000 Rohm Co.................................... 825
--------
1,812
--------
Electronic Components/Instruments (0.3%):
7,200 Hirose Electric............................ 495
22,000 NEC Corp................................... 308
--------
803
--------
Food Products & Services (0.1%):
6,000 Matsumotokiyoshi........................... 255
--------
Health & Personal Care (0.0%):
3,000 Hoya Corp.................................. 134
--------
Manufacturing - Consumer Goods (0.3%):
20,000 Canon, Inc................................. 545
8,000 Fuji Photo Film............................ 322
--------
867
--------
Office Equipment (0.1%):
23,000 Ricoh Co., Ltd............................. 301
--------
Pharmaceuticals (0.6%):
24,000 Daiichi Pharmaceutical..................... 424
13,000 Sankyo Co. Ltd............................. 437
26,000 Takeda Chemical Industries................. 732
--------
1,593
--------
Retail General Merchandise (0.1%):
2,000 Autobacs Seven Co., Ltd.................... 159
--------
Services (0.1%):
4,000 Nichii Gakkan Co........................... 224
--------
Telecommunications (0.1%):
30,000 Denki Kogyo Co., Ltd....................... 234
--------
Toys (0.1%):
1,900 Nintendo Co., Ltd.......................... 159
--------
Total Japan 7,359
--------
Malaysia (0.1%):
Engineering (0.1%):
40,000 United Engineers Ltd....................... 288
--------
Total Malaysia 288
--------
Mexico (0.3%):
Beverages & Tobacco (0.1%):
69,000 Fomento Economico Mexicano, SA de CV....... 410
--------
Diversified (0.1%):
40,000 Grupo Carso SA de CV....................... 278
--------
Food & Beverages (0.1%):
185,000 Grupo Industrial Maseca SA de CV........... 202
--------
Total Mexico 890
--------
Netherlands (0.7%):
Broadcasting & Publishing (0.3%):
19,200 Elsevier NV................................ 321
2,900 Wolters Kluwer NV.......................... 354
--------
675
--------
Distribution (0.1%):
7,400 Hagemeyer NV............................... 383
--------
Office Equipment & Services (0.3%):
3,624 Ahrend..................................... 245
4,800 Oce-Van Der Grinten NV..................... 620
--------
865
--------
Total Netherlands 1,923
--------
New Zealand (0.1%):
Agriculture (0.1%):
54,300 Fernz Corp. Ltd............................ 184
--------
Consumer Goods & Services (0.0%):
41,008 Fisher & Paykel Ind. Ltd................... 160
--------
Total New Zealand 344
--------
Norway (0.2%):
Printing & Publishing (0.1%):
14,700 Schibsted ASA.............................. 291
--------
Telecommunications (0.1%):
26,000 Nera AS.................................... 153
--------
Total Norway 444
--------
</TABLE>
Continued
97
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Foreign Stocks, contined:
Philippines (0.0%):
Construction (0.0%):
229,000 C&P Homes, Inc............................. $ 86
--------
Total Philippines 86
--------
Singapore (0.1%):
Diversified (0.1%):
60,400 Singapore Technologies Industrial Corp..... 155
--------
Total Singapore 155
--------
South Africa (0.1%):
Beverages & Tobacco (0.1%):
4,500 South African Breweries Ltd................ 138
--------
Investment Company (0.0%):
26,000 Dimension Data Holdings Ltd.(b)............ 103
--------
Total South Africa 241
--------
Spain (0.3%):
Apparel & Shoes (0.1%):
4,500 Cortefiel SA............................... 197
--------
Beverages & Tobacco (0.1%):
2,700 Tabacalera SA.............................. 145
--------
Services (0.1%):
33,000 Prosegur, CIA de Seguridad SA.............. 404
--------
Total Spain 746
--------
Sweden (0.1%):
Engineering (0.1%):
12,000 Sandvik B.................................. 341
--------
Total Sweden 341
--------
Switzerland (0.4%):
Food Products & Services (0.1%):
295 Nestle SA.................................. 390
--------
Medical Equipment & Supplies (0.1%):
200 Novartis AG................................ 320
--------
Pharmaceuticals (0.2%):
50 Roche Holding AG-Genuss.................... 453
--------
Total Switzerland 1,163
--------
United Kingdom (1.0%):
Appliances & Household Products (0.0%):
13,000 D.F.S. Furniture Co. PLC................... 122
--------
Capital Goods (0.2%):
47,500 Powerscreen International PLC.............. 517
--------
Computer Software (0.1%):
20,700 Logica PLC................................. 239
--------
Engineering (0.1%):
18,200 Siebe PLC.................................. 308
--------
Food Products & Services (0.2%):
41,500 Compass Group PLC.......................... 466
--------
Machinery & Equipment (0.1%):
48,000 TT Group PLC............................... 296
--------
Manufacturing - Consumer Goods (0.3%):
125,500 Halma PLC(b)............................... 342
108,000 Polypipe PLC............................... 374
--------
716
--------
Total United Kingdom 2,664
--------
Total Foreign Stocks 25,429
--------
Preferred Stock (0.2%):
(0.2%):
2,600 SAP AG..................................... 536
--------
Total Preferred Stock 536
--------
Investment Companies (0.4%):
1,056,952 Parkstone Prime Obligation Fund
Institutional Shares.................... 1,057
--------
Total Investment Companies 1,057
--------
Repurchase Agreements (3.9%):
10,450,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $11,050,137 FHLMC,
7.00%, 4/15/23, market value--$10,659)... 10,450
--------
Total Repurchase Agreements 10,450
--------
Government Obligations (23.3%):
U.S. Agency (1.1%):
Federal National Mortgage Assoc.
3,000,000 7.55%, 3/27/07 ............................ 3,035
--------
Total U.S. Agency 3,035
--------
U.S. Treasury Notes (10.9%):
8,000,000 5.63%, 1/31/98 ............................ 7,998
4,010,000 5.13%, 2/28/98 ............................ 3,995
1,000,000 6.38%, 4/30/99 ............................ 1,005
13,100,000 5.50%, 12/31/00 ........................... 12,763
730,000 7.00%, 7/15/06 ............................ 751
3,000,000 6.63%, 5/15/07 ............................ 3,023
--------
Total U.S. Treasury Notes 29,535
--------
U.S. Treasury Bonds (4.1%):
11,520,000 6.50%, 11/15/26 ........................... 11,031
--------
Total U.S. Treasury Bonds 11,031
--------
Mortgage Pass Thru's (7.2%):
Federal National Mortgage Assoc.
2,525,856 8.00%, 11/1/23, Pool #190251............... 2,591
</TABLE>
Continued
98
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1996
Balanced Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ---------- ----------------------------------------------- ---------
<S> <C> <C>
Government Obligations, continued:
Mortgage Pass Thru's, continued:
Government National Mortgage Assoc.
855,015 6.50%, 9/15/23, Pool #345871............... $ 821
973,088 6.50%, 12/15/23, Pool #374650.............. 931
7,208,780 7.00%, 12/15/23, Pool #780406.............. 7,111
8,110,807 7.50%, 8/15/25, Pool #780213............... 8,165
---------
Total Mortgage Pass Thru's 19,619
---------
Total Government Obligations 63,220
---------
Corporate Bonds (14.6%):
Yankee (1.1%):
2,700,000 Quebec Province, 13.00%, 10/1/13 .......... 3,021
---------
Industrial (3.6%):
700,000 ERAC USA Finance Co., 6.35%, 1/15/01 ...... 689
250,000 Hertz Corp., 9.50%, 5/15/98 ............... 257
850,000 Lehman Brothers Holdings, 6.90%, 7/15/99 .. 857
1,325,000 Nike, Inc., 6.38%, 12/1/03 ................ 1,290
1,850,000 Norfolk Southern Corp., 6.95%, 5/1/02 ..... 1,859
3,000,000 Province of Ontario, 7.38%, 1/27/03 ....... 3,083
1,750,000 USF & G Capital II, 8.47%, 1/10/27 ........ 1,768
---------
9,803
---------
Financial (9.8%):
1,500,000 Associates Corp. N.A., 6.75%, 7/15/01 ..... 1,500
2,750,000 CIT Group Holdings, 6.25%, 3/22/99 ........ 2,750
500,000 Continental Bank N.A., 11.25%, 7/1/01 ..... 524
500,000 Dean Witter Discover & Co., 6.00%, 3/1/98 . 501
3,215,000 Fleet Capital Trust II, 7.92%, 12/11/26 ... 3,187
3,200,000 Ford Motor Credit, 7.50%, 6/15/04 ......... 3,300
3,125,000 GMAC, 5.70%, 2/9/99 ....................... 3,094
2,700,000 Honeywell, Inc., 6.75%, 3/15/02 ........... 2,693
2,500,000 John Deere Capital, 6.00%, 2/1/99 ......... 2,491
3,000,000 Salomon, Inc., 7.20%, 2/1/04 .............. 3,000
3,415,000 Swiss Bank Corp., 7.38%, 6/15/17 .......... 3,389
---------
26,429
---------
Utilities (0.1%):
250,000 British Gas & Finance, 8.38%, 9/8/99 ...... 261
---------
Total Corporate Bonds 39,514
---------
Asset Backed Securities (3.1%):
3,500,000 Banc One Auto Grantor Trust, 6.27%,
11/20/03 ............................... 3,498
2,450,000 Discover Card Master Trust, 6.05%, 8/18/08 2,310
2,175,155 Lehman FHA - Title 1 Loan Trust, 6.78%,
3/25/08 ................................ 2,180
462,568 Structured Asset Securities Co., 7.50%,
8/25/26 ................................ 463
---------
Total Asset Backed Securities 8,451
---------
Collateralized Mortgage Obligations (2.5%):
Government Agency Backed CMO's (2.5%):
Federal Home Loan Mortgage Corp.
296,710 8.25%, 8/15/19 ............................ 297
Federal National Mortgage Assoc.
3,000,000 8.00%, 2/25/21 ............................ 3,098
Securitized Asset Sales, Inc.
3,500,000 7.53%, 3/25/24 ............................ 3,519
---------
Total Government Agency Backed CMO's 6,914
---------
Total Collateralized Mortgage Obligations 6,914
---------
Floating Rate Notes (1.1%):
Financial (1.1%):
3,000,000 Chase Capital II, 6.36%, 2/1/27 ........... 2,925
---------
Total Floating Rate Notes 2,925
---------
Total Investments, at value 258,957
---------
Total (Cost--$247,289) $269,407
=========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $271,266.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $243.
Cost for federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation .................................................. $ 22,259
Unrealized depreciation .................................................. (384)
=========
Net unrealized appreciation ............................................. $ 21,875
=========
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Forward Currency Contract Contract Contract Value Appreciation Delivery
Price U.S. Dollars (Depreciation) Date
-------- --------------- -------------- --------
<S> <C> <C> <C> <C>
Currency Sold:
Hong Kong Dollar 7.752 $(268) $ 0 7/3/97
=============== ==============
Net payable for forward currency contracts sold $(268)
==============
</TABLE>
See notes to financial statements.
99
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- -------
<S> <C> <C>
Common Stocks (51.0%):
Advertisement (0.1%):
2,300 HA-LO Industries Inc.(b)............................... $ 54
-------
Broadcasting (0.9%):
2,000 British Sky Broadcasting-ADR........................... 89
6,400 CanWest Global Communications Corp..................... 95
1,000 Clear Channel Communications, Inc.(b).................. 62
2,000 Evergreen Media Corp.(b)............................... 89
-------
335
-------
Building Products (0.2%):
2,650 Royal Technologies Group Ltd.(b)....................... 70
-------
Business Services (3.2%):
1,900 Automatic Data Processing, Inc......................... 89
5,700 Cambridge Technology Partners Inc.(b).................. 182
1,300 Cintas Corp............................................ 89
9,900 Concord EFS, Inc.(b)................................... 255
700 Envoy Corp.(b)......................................... 23
1,100 F.Y.I. Inc.(b)......................................... 26
1,250 Healthcare Recoveries Inc.(b).......................... 24
1,300 IntelliQuest Information Group, Inc.(b)................ 29
1,300 International Telecommunication Data
Systems, Inc.(b)..................................... 32
1,600 Iron Mountain, Inc.(b)................................. 48
800 NCO Group, Inc.(b)..................................... 24
900 Nova Corp. (Georgia)(b)................................ 23
4,050 Paychex................................................ 154
2,500 PMT Services, Inc.(b).................................. 38
1,200 Registry, Inc.(b)...................................... 55
400 RWD Technologies, Inc.(b).............................. 7
1,100 Staff Leasing, Inc.(b)................................. 21
2,500 SunGard Data Systems Inc.(b)........................... 116
-------
1,235
-------
Chemicals (0.3%):
3,000 Monsanto Co............................................ 129
-------
Communications Equipment (0.4%):
2,400 Lucent Technologies, Inc............................... 173
-------
Computer Hardware (1.3%):
1,000 ACT Manufacturing, Inc.(b)............................. 42
1,250 Apex PC Solutions, Inc.(b)............................. 25
1,700 Harmonic Lightwaves, Inc.(b)........................... 29
1,800 Hewlett Packard Co..................................... 101
2,400 Larscom, Inc. - Class A(b)............................. 26
200 Ontrack Data International(b).......................... 5
2,800 Sanmina Corp.(b)....................................... 178
2,300 Sun Microsystems, Inc.(b).............................. 86
-------
492
-------
Computer Software (6.3%):
1,900 Aspen Technologies, Inc.(b)............................ 71
2,000 Baan Co. NV(b)......................................... 138
3,900 BMC Software, Inc.(b).................................. 215
2,400 Cadence Design Systems, Inc.(b)........................ 80
1,400 CBT Group PLC(b)....................................... 88
1,600 Computer Sciences Corp.(b)............................. 115
1,700 Deltek Systems, Inc.(b)................................ 29
5,800 First Data Corp........................................ 255
1,400 INSO Corp.(b).......................................... 29
1,900 JDA Software Group, Inc.(b)............................ 65
3,200 McAfee Associates, Inc.(b)............................. 202
1,300 Microsoft, Inc.(b)..................................... 164
3,400 Oracle Corp.(b)........................................ 171
3,900 Parametric Technology Corp.(b)......................... 166
1,800 Pegasystems, Inc.(b)................................... 56
5,500 Peoplesoft Inc.(b)..................................... 290
950 Scopus Technology, Inc.(b)............................. 21
3,400 Systemsoft Corp.(b).................................... 37
1,900 Veritas Software Corp.(b).............................. 95
1,300 Viasoft, Inc.(b)....................................... 66
1,450 Visio Corp.(b)......................................... 102
-------
2,455
-------
Computers & Peripherals (0.8%):
2,500 3Com Corp.(b).......................................... 113
3,000 Cisco Systems Inc.(b).................................. 201
-------
314
-------
Consumer Goods & Services (1.3%):
1,150 Apollo Group Inc.(b)................................... 41
4,700 CUC International Inc.(b).............................. 121
1,900 Nike Inc............................................... 111
1,400 Procter & Gamble Co.................................... 198
1,500 U.S. Rentals, Inc.(b).................................. 38
-------
509
-------
Correctional Facilities (0.5%):
3,000 Corrections Corp. of America(b)........................ 119
2,400 Wackenhut Corrections Corp.(b)......................... 70
-------
189
-------
Cosmetics (0.5%):
2,100 Gillette Co............................................ 199
-------
Cosmetics & Toiletries (0.2%):
1,900 Rexall Sundown Inc.(b)................................. 74
-------
Data Processing & Reproduction (0.4%):
700 Electronics for Imaging, Inc.(b)....................... 33
3,100 Fiserv, Inc.(b)........................................ 138
-------
171
-------
Diversified (0.2%):
2,000 Cognizant Corp......................................... 81
-------
</TABLE>
100
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- ----------
<S> <C> <C>
Common Stocks, continued:
Diversified Operations (0.3%):
1,600 Tyco Laboratories, Inc................................. $ 111
-------
Educational Services (0.1%):
1,400 Sylvan Learning Systems, Inc.(b)....................... 48
-------
Electrical & Electronic (1.6%):
1,200 Advanced Lighting Technologies, Inc.(b)................ 30
2,600 Analog Devices, Inc.(b)................................ 69
1,400 Applied Materials, Inc.(b)............................. 99
3,300 Emerson Electric....................................... 182
2,300 General Electric Co.................................... 150
2,650 Molex Inc.............................................. 92
-------
622
-------
Entertainment (1.3%):
6,700 Carnival Cruise Lines.................................. 276
1,900 Hollywood Entertainment Corp.(b)....................... 43
4,300 Regal Cinemas, Inc.(b)................................. 142
2,200 Vistana Inc.(b)........................................ 34
-------
495
-------
Environmental Services (0.2%):
2,100 United Waste Systems, Inc.(b).......................... 86
-------
Financial Services (4.6%):
2,400 American Express Co.................................... 179
2,900 Associates First Capital............................... 161
1,300 Central Financial Acceptance Corp.(b).................. 14
1,000 ContiFinancial Corp.(b)................................ 37
6,800 Credit Acceptance Corp.(b)............................. 88
6,000 Fannie Mae............................................. 262
1,400 Finova Group, Inc...................................... 107
1,500 First Alliance Corp.(b)................................ 44
2,500 FIRSTPLUS Financial Group Inc.(b)...................... 85
5,500 Green Tree Financial Corp.............................. 196
1,200 Household International, Inc........................... 141
5,000 Imperial Credit Industries, Inc.(b).................... 103
4,300 MBNA Corp.............................................. 157
1,400 Metris Cos. Inc........................................ 46
3,500 Money Store Inc. (The)................................. 100
2,100 Nationwide Financial Services.......................... 56
750 Sirrom Capital Corp.................................... 26
-------
1,802
-------
Food & Beverage (0.8%):
1,850 Mc Donald's Corp....................................... 89
3,000 The Coca-Cola Co....................................... 209
-------
298
-------
Food & Household Products (0.1%):
1,500 Sunbeam Corp........................................... 57
-------
Food Processing & Packaging (0.4%):
1,500 CPC International, Inc................................. 138
-------
Food Products & Services (0.3%):
1,000 Fine Host Corp.(b)..................................... 32
1,450 Safeway, Inc.(b)....................................... 67
-------
99
-------
Forest & Paper Products (0.3%):
2,600 Kimberly Clark Corp.................................... 129
-------
Funeral Services (1.2%):
1,900 Equity Corp. International(b).......................... 46
10,600 Service Corp. International............................ 348
1,900 Stewart Enterprises.................................... 80
-------
474
-------
Health & Personal Care (0.1%):
2,000 Alberto-Culver Co...................................... 47
-------
Health Care (0.2%):
2,100 Columbia/HCA Healthcare Corp........................... 83
-------
Health Care - Drugs (1.0%):
1,600 Eli Lilly & Co......................................... 175
1,800 Pfizer, Inc............................................ 215
-------
390
-------
Health Care - Services (4.7%):
1,400 American Medserve Corp.(b)............................. 18
1,300 American Oncology Resources, Inc.(b)................... 22
2,750 Baxter International Inc............................... 144
5,800 Dura Pharmaceuticals, Inc.(b).......................... 231
10,000 HEALTHSOUTH Corp.(b)................................... 249
1,700 Jones Medical Industries, Inc.......................... 81
1,200 MedQuist Inc.(b)....................................... 36
2,000 NCS Healthcare, Inc.-Class A(b)........................ 61
1,900 Occusystems, Inc.(b)................................... 55
10,100 Omnicare, Inc.......................................... 317
5,800 Orthodontic Centers Of America, Inc.(b)................ 105
2,400 Parexel International Corp.(b)......................... 76
5,100 PhyCor, Inc.(b)........................................ 176
1,800 Quintiles Transnational Corp.(b)....................... 125
2,350 Serologicals Corp.(b).................................. 54
2,000 Total Renal Care Holdings, Inc.(b)..................... 80
-------
1,830
-------
Hotels (0.2%):
2,000 Signature Resorts, Inc.(b)............................. 69
-------
Hotels & Lodging (1.7%):
3,900 Hilton Hotels Corp..................................... 104
6,100 Hospitality Franchise Systems(b)....................... 354
2,100 Marriott International, Inc............................ 129
2,300 Sun International Hotel(b)............................. 85
-------
672
-------
Industrial Goods & Services (0.9%):
900 Clorox Co.............................................. 119
</TABLE>
101
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- ----------
<S> <C> <C>
Common Stocks, continued:
Industrial Goods & Services, continued:
2,900 United Technologies Corp............................... $ 241
-------
360
-------
Insurance (2.0%):
1,400 American International Group, Inc...................... 209
2,000 Amerin Corp.(b)........................................ 49
2,200 HCC Insurance Holdings Inc............................. 59
2,400 March & McLennan Cos, Inc.............................. 171
5,700 Sunamerica Inc......................................... 278
-------
766
-------
Machinery & Equipment (0.1%):
1,600 Rental Service Corp.(b)................................ 42
-------
Manufacturing - Capital Goods (0.2%):
4,200 Miller Industries, Inc.(b)............................. 67
-------
Manufacturing - Consumer Goods (0.3%):
3,000 Newell Cos Inc......................................... 119
-------
Medical Equipment & Supplies (1.3%):
1,800 Boston Scientific Corp.(b)............................. 111
500 Guidant Corp........................................... 43
2,300 Henry Schein, Inc.(b).................................. 72
2,200 Medtronic, Inc......................................... 178
1,500 Molecular Devices Corp.(b)............................. 26
850 Sabratek Corp.(b)...................................... 24
800 Spine-tech Inc.(b)..................................... 30
2,900 Urohealth Systems, Inc.(b)............................. 17
-------
501
-------
Medical - Biotechnology (0.1%):
1,500 Biogen, Inc.(b)........................................ 51
-------
Medical - Hospital Management & Services (0.3%):
4,600 Health Management Associates(b)........................ 131
-------
Multiple Industry (0.2%):
1,200 Corning Glass.......................................... 67
-------
Office Equipment & Services (0.3%):
1,600 Xerox Corp............................................. 126
-------
Oil & Gas Exploration Products & Services (0.2%):
2,200 YPF Sociedad Anonima-ADR............................... 68
-------
Pharmaceuticals (1.5%):
1,600 Johnson & Johnson...................................... 103
2,300 Merck & Co., Inc....................................... 238
1,200 Teva Pharmaceutical Industries Ltd.-ADR................ 78
1,500 Warner-Lambert Co...................................... 186
-------
605
-------
Restaurants (0.2%):
2,700 Landry's Seafood Restaurants, Inc.(b).................. 62
-------
Retail Stores (2.7%):
1,800 CDW Computer Center Inc.(b)............................ 96
2,875 Consolidated Stores Corp.(b)........................... 100
1,200 Dollar General......................................... 45
2,300 Just For Feet, Inc.(b)................................. 40
2,300 MSC Industrial Direct Co., Inc.(b)..................... 92
2,200 Petco Animal Supplies, Inc.(b)......................... 66
2,000 Renters Choice, Inc.(b)................................ 40
1,700 Saks Holdings Inc...................................... 43
3,200 Sears Roebuck.......................................... 172
2,100 The Men's Warehouse, Inc.(b)........................... 66
2,800 U.S. Office Products Co.(b)............................ 86
3,000 Walgreen Co............................................ 161
2,300 West Marine, Inc.(b)................................... 59
-------
1,066
-------
Retail Stores - Specialty (0.4%):
2,300 Home Depot Inc......................................... 159
-------
Technology (0.4%):
1,100 Intel Corp............................................. 156
-------
Telecommunications (1.6%):
3,150 AirTouch Communications, Inc.(b)....................... 86
3,000 Cia. de Telecomunicaciones de Chile S.A.- ADR.......... 99
1,000 Oy Nokia AB, Class A (ADR)............................. 74
1,200 Pacific Gateway Exchange, Inc.(b)...................... 34
2,500 Portugal Telecom SA (ADR).............................. 100
1,500 Telco Communications Group, Inc.(b).................... 49
600 Telecommunicacoes Brasileiras-ADR...................... 91
3,200 Worldcom, Inc.(b)...................................... 102
-------
635
-------
Telecommunications - Services & Equipment (1.2%):
800 Cascade Communications Corp.(b)........................ 22
3,800 FORE Systems, Inc.(b).................................. 52
1,800 Newbridge Networks Corp.(b)............................ 78
1,400 PairGain Technologies, Inc.(b)......................... 22
4,400 Tellabs, Inc.(b)....................................... 246
4,400 West TeleServices Corp.(b)............................. 65
-------
485
-------
Wholesale Distribution (0.6%):
1,300 Barnett, Inc.(b)....................................... 32
3,150 Brightpoint, Inc.(b)................................... 103
4,100 Richfood Holdings, Inc................................. 107
-------
242
-------
Wholesale Distribution - Pharmaceuticals (0.8%):
5,300 Cardinal Health, Inc................................... 303
-------
Total Common Stocks 19,941
-------
Foreign Stocks (15.1%):
Australia (0.6%):
Beverages & Tobacco (0.1%):
16,500 Foster's Brewing Group Ltd.(b)......................... 30
-------
</TABLE>
102
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- ----------
<S> <C> <C>
Foreign Stocks, continued:
Australia, continued:
Construction (0.1%):
13,000 Leighton Holdings...................................... $ 63
-------
Diversified (0.2%):
7,500 Smith (Howard) Ltd..................................... 71
-------
Pharmaceuticals (0.2%):
12,000 CSL Ltd................................................ 73
-------
Total Australia 237
-------
Austria (0.1%):
Engineering (0.1%):
210 VA Technologie AG...................................... 38
-------
Total Austria 38
-------
Belgium (0.3%):
Retail Stores/Catalog (0.3%):
250 Colruyt SA............................................. 122
-------
Total Belgium 122
-------
Brazil (0.1%):
Beverages & Tobacco (0.1%):
2,200 Companhia Cervejaria Brahma-ADR........................ 34
-------
Total Brazil 34
-------
Canada (0.5%):
Computer Software (0.1%):
1,350 Discreet Logic, Inc.(b)................................ 22
-------
Electronic Components/Instruments (0.1%):
6,000 CAE, Inc............................................... 48
-------
Manufacturing - Consumer Goods (0.2%):
3,000 Bombardier, Inc., Class B.............................. 68
-------
Natural Resources (0.1%):
1,500 Canadian Natural Resources Ltd.(b)..................... 39
-------
Total Canada 177
-------
Denmark (0.2%):
Food Products & Services (0.2%):
1,000 Danisco A/S............................................ 61
-------
Total Denmark 61
-------
Finland (0.1%):
Diversified (0.1%):
1,300 Huhtamaki Group........................................ 56
-------
Total Finland 56
-------
France (1.1%):
Consumer Goods & Services (0.6%):
440 Clarins................................................ 59
930 Hermes International................................... 87
600 Societe BIC SA(b)...................................... 98
-------
244
-------
Engineering (0.2%):
270 Altran Technologies.................................... 88
-------
Machinery & Equipment (0.3%):
1,200 Sidel, SA.............................................. 93
-------
Total France 425
-------
Germany (1.3%):
Health Care (0.3%):
1,200 Schering AG............................................ 129
-------
Machinery & Equipment (0.3%):
240 Mannesmann AG.......................................... 107
-------
Manufacturing - Consumer Goods (0.3%):
925 Adidas AG.............................................. 104
-------
Medical Equipment & Supplies (0.2%):
400 Fresenius AG........................................... 91
-------
Pharmaceuticals (0.2%):
1,500 Merck KGaA............................................. 65
-------
Total Germany 496
-------
Hong Kong (0.4%):
Gas & Electric Utility (0.2%):
30,800 Hong Kong & China Gas Co. Ltd.......................... 62
-------
Real Estate (0.2%):
3,500 Henderson Land Development Co. Ltd..................... 31
5,000 Sun Hung Kai Properties Ltd............................ 60
-------
91
-------
Total Hong Kong 153
-------
Indonesia (0.2%):
Banking & Financial Services (0.2%):
75,000 Bank International Indonesia........................... 65
-------
Tobacco (0.0%):
4,000 PT Hanjaya Mandala Sampoema(b)......................... 15
-------
Total Indonesia 80
-------
Israel (0.1%):
Medical Equipment & Supplies (0.1%):
1,700 ESC Medical Systems Ltd.(b)............................ 43
-------
Total Israel 43
-------
Italy (0.3%):
Electronic Components/Instruments (0.1%):
1,400 Gewiss SpA............................................. 24
-------
Jewelry (0.2%):
13,200 Bulgari SpA............................................ 75
-------
</TABLE>
103
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- ----------
<S> <C> <C>
Foreign Stocks, continued:
Italy, continued:
Optical Supplies (0.0%):
400 Safilo SpA............................................. $ 9
-------
Total Italy 108
-------
Japan (4.6%):
Chemicals (0.1%):
10,000 Takasago International................................. 60
-------
Computer Software (0.4%):
2,000 TDK Corp............................................... 147
-------
Electrical & Electronic (1.1%):
1,000 Keyence Corp........................................... 149
3,000 Omron Corp............................................. 64
2,000 Rohm Co................................................ 206
-------
419
-------
Electronic Components/Instruments (0.4%):
1,000 Hirose Electric........................................ 69
6,000 NEC Corp............................................... 84
-------
153
-------
Food Products & Services (0.2%):
2,000 Matsumotokiyoshi....................................... 85
-------
Health & Personal Care (0.1%):
1,000 Hoya Corp.............................................. 45
-------
Manufacturing - Consumer Goods (0.6%):
5,000 Canon, Inc............................................. 136
2,000 Fuji Photo Film........................................ 81
-------
217
-------
Office Equipment & Services (0.2%):
5,000 Ricoh Company Ltd...................................... 66
-------
Pharmaceuticals (0.9%):
5,000 Daiichi Pharmaceutical................................. 88
4,000 Sankyo Co. Ltd......................................... 135
5,000 Takeda Chemical Industries............................. 141
-------
364
-------
Retail General Merchandise (0.2%):
1,000 Autobacs Seven Co., Ltd................................ 79
-------
Services (0.1%):
1,000 Nichii Gakkan Co....................................... 56
-------
Telecommunications (0.2%):
9,000 Denki Kogyo Co., Ltd................................... 70
-------
Toys (0.1%):
500 Nintendo Co. Ltd....................................... 42
-------
Total Japan 1,803
-------
Malaysia (0.2%):
Engineering (0.2%):
9,000 United Engineers Ltd................................... 65
-------
Total Malaysia 65
-------
Mexico (0.5%):
Beverages & Tobacco (0.2%):
14,000 Formento Economico Mexicano, SA de CV.................. 83
-------
Conglomerates (0.2%):
10,000 Grupo Carso SA de CV................................... 70
-------
Industrial Holding Company (0.1%):
50,000 Grupo Industrial Maseca SA de CV....................... 55
-------
Total Mexico 208
-------
Netherlands (1.0%):
Broadcasting & Publishing (0.2%):
4,000 Elsevier NV............................................ 67
-------
Distribution (0.2%):
1,500 Hagemeyer NV........................................... 78
-------
Office Equipment & Services (0.5%):
1,015 Ahrend................................................. 69
1,000 Oce-Van Der Grinten NV................................. 129
-------
198
-------
Printing & Publishing (0.1%):
500 Wolters Kluwer NV...................................... 61
-------
Total Netherlands 404
-------
New Zealand (0.2%):
Agriculture (0.1%):
17,500 Fernz Corp. Ltd........................................ 59
-------
Consumer Goods & Services (0.1%):
8,600 Fisher & Paykel Ind. Ltd............................... 34
-------
Total New Zealand 93
-------
Norway (0.2%):
Printing & Publishing (0.1%):
3,300 Schibsted ASA.......................................... 65
-------
Telecommunications (0.1%):
5,500 Nera AS................................................ 32
-------
Total Norway 97
-------
Singapore (0.1%):
Diversified (0.1%):
21,000 Singapore Technologies Industrial Corp................. 54
-------
Total Singapore 54
-------
South Africa (0.2%):
Beverages & Tobacco (0.1%):
1,100 South African Breweries Ltd............................ 34
-------
Investment Company (0.1%):
6,000 Dimension Data Holdings Ltd.(b)........................ 24
-------
Total South Africa 58
-------
</TABLE>
Continued
104
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------------------- ----------
<S> <C> <C>
Foreign Stocks, continued:
Spain (0.4%):
Apparel & Shoes (0.1%):
1,000 Cortefiel SA........................................... $ 44
-------
Beverages & Tobacco (0.1%):
600 Tabacalera SA.......................................... 32
-------
Commercial Services (0.2%):
6,000 Prosegur, CIA de Seguridad SA(b)....................... 73
-------
Total Spain 149
-------
Sweden (0.2%):
Engineering (0.2%):
2,400 Sandvik B.............................................. 68
-------
Total Sweden 68
-------
Switzerland (0.8%):
Food Products & Services (0.2%):
65 Nestle SA.............................................. 86
-------
Pharmaceuticals (0.6%):
50 Novartis AG............................................ 80
15 Roche Holdings AG-Genuss............................... 136
-------
216
-------
Total Switzerland 302
-------
United Kingdom (1.4%):
Appliances & Household Products (0.1%):
6,000 D.F.S. Furniture Co. PLC............................... 56
-------
Capital Goods (0.2%):
6,000 Powerscreen International PLC.......................... 65
-------
Computer Software (0.1%):
4,400 Logica PLC............................................. 51
-------
Engineering (0.3%):
6,000 Siebe PLC.............................................. 102
-------
Food Products & Services (0.2%):
6,000 Compass Group PLC...................................... 67
-------
Machinery & Equipment (0.2%):
11,000 TT Group PLC........................................... 68
-------
Manufacturing - Consumer Goods (0.3%):
28,000 Halma PLC.............................................. 76
16,000 Polypipe PLC........................................... 55
-------
131
-------
Total United Kingdom 540
-------
Total Foreign Stocks 5,871
-------
Corporate Bonds (8.8%):
Automotive Finance (1.0%):
150,000 Ford Motor Credit, 7.50%, 6/15/04 ..................... 155
230,000 General Motors Acceptance Corp., 5.70%,
2/9/99 ............................................. $ 228
-------
383
-------
Banking (0.8%):
300,000 Swiss Bank Corp., 7.38%, 6/15/17 ...................... 298
-------
Financial Services (3.6%):
200,000 Banc One Auto Grantor Trust, 6.27%,
11/20/03 ........................................... 200
130,000 Chase Capital II, 6.36%, 2/1/27 ....................... 127
250,000 CIT Group Holdings, 6.25%, 3/22/99 .................... 249
250,000 Discover Card Master Trust, 6.05%, 8/18/08 ............ 236
200,000 Fleet Capital Trust II, 7.92%, 12/11/26 ............... 198
115,000 John Deere Capital, 6.00%, 2/1/99 ..................... 115
75,000 Salomon, Inc., 7.20%, 2/1/04 .......................... 75
200,000 Securitized Asset Sales, Inc., 7.53%,
3/25/24 ............................................ 201
-------
1,401
-------
Government Agency (1.4%):
225,000 Federal National Mortgage Assoc., 7.55%,
3/27/07 ............................................ 228
325,000 Federal National Mortgage Assoc., 8.00%,
2/25/21 ............................................ 336
-------
564
-------
Governments(Foreign) (1.1%):
170,000 Province Of Ontario, 7.38%, 1/27/03 ................... 175
230,000 Quebec Province, 13.00%, 10/1/13 ...................... 257
-------
432
-------
Industrial Goods & Services (0.6%):
230,000 Honeywell, Inc., 6.75%, 3/15/02 ....................... 229
-------
Transportation & Shipping (0.3%):
130,000 Norfolk Southern Corp., 6.95%, 5/1/02 ................. 131
-------
Total Corporate Bonds 3,438
-------
Money Market Funds - Tax Exempt (0.2%):
75,010 Parkstone Bank of California........................... 75
-------
Total Money Market Funds - Tax Exempt 75
-------
Preferred Stock (0.3%):
600 SAP AG................................................. 124
-------
Total Preferred Stock 124
-------
U.S. Treasury Notes (16.5%):
275,000 5.63%, 1/31/98......................................... 275
1,325,000 5.13%, 2/28/98......................................... 1,320
730,000 6.38%, 4/30/99......................................... 734
</TABLE>
Continued
105
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Aggressive Allocation Fund
(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:
1,220,000 6.25%, 8/31/00......................................... $ 1,219
335,000 6.50%, 8/31/01......................................... 336
750,000 5.88%, 2/15/04......................................... 727
520,000 6.63%, 5/15/07......................................... 524
1,380,000 6.50%, 11/15/26........................................ 1,322
-------
Total U.S. Treasury Notes 6,457
-------
Investment Companies (0.1%):
32,690 Parkstone Prime Institutional Shares................... 33
-------
Total Investment Companies 33
-------
Total Investments, at value 35,939
-------
Repurchase Agreements (7.7%):
3,016,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $3,973,321 FHLMC,
6.20%, 3/15/24, market value--$3,076)............... $ 3,016
-------
Total Repurchase Agreements 3,016
-------
Total (Cost--$36,561) $38,955
=======
</TABLE>
- ---------------
Percentages indicated are based on net assets of $39,043.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting in excess of federal income tax reporting of $14.
Cost fot federal income tax purposes differs from market value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ............................................................... $ 2,448
Unrealized depreciation ............................................................... (68)
-------
Net unrealized appreciation ........................................................... $ 2,380
=======
</TABLE>
(b) Represents non-income producing securities.
<TABLE>
<CAPTION>
Forward Currency Contracts Contract Contract Value Appreciation Delivery
Price U.S. Dollars (Depreciation) Date
----------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Currency Sold:
Hong Kong Dollar 7.752 $(42) $ 0 7/3/97
=============== ==============
Net payable for forward currency contract sold $(42)
==============
Currency Purchased:
South African Rand 4.501 $ 34 $ 0 7/1/97
=============== ==============
Net receivable for forward currency contract purchased $ 34
==============
</TABLE>
See notes to financial statements.
106
<PAGE>
Schedule of Portfolio Investments
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Equity Income Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Common Stocks (75.9%):
Banking (7.5%):
158,300 First Tennessee National Corp.............. $ 7,598
521,512 MBNA Corp.................................. 19,100
142,200 PNC Financial Corp......................... 5,919
--------
32,617
--------
Beverages (5.0%):
281,600 Anheuser-Busch Cos., Inc................... 11,810
145,700 The Coca-Cola Co........................... 10,163
--------
21,973
--------
Building Products (2.2%):
227,600 Masco Corp................................. 9,502
--------
Consumer Goods & Services (1.8%):
489,300 Dial Corp.................................. 7,645
--------
Electrical Equipment (3.7%):
296,600 Emerson Electric Co........................ 16,332
--------
Financial Services (1.8%):
176,900 SunAmerica, Inc............................ 7,717
--------
Food Products & Services (2.6%):
660,900 Flowers Industries, Inc.................... 11,111
--------
Forest & Paper Products (2.5%):
221,400 Kimberly Clark Corp........................ 11,015
--------
Health Care (6.0%):
210,120 Bristol-Myers Squibb Co.................... 17,020
143,900 Johnson & Johnson.......................... 9,264
--------
26,284
--------
Health Care - Drugs (8.0%):
182,500 American Home Products Corp................ 13,961
193,200 Eli Lilly & Co............................. 21,118
--------
35,079
--------
Industrial Goods & Services (3.2%):
168,600 United Technologies Corp................... 13,994
--------
Insurance (1.3%):
79,233 Allstate Corp.............................. 5,784
--------
Machinery & Equipment (2.0%):
222,000 Snap-On, Inc............................... 8,741
--------
Office Equipment & Services (2.2%):
119,450 Xerox Corp................................. 9,422
--------
Oil & Gas Exploration Products & Services (9.8%):
145,600 Atlantic Richfield Co...................... 10,265
113,300 Mobil Corp................................. 7,917
272,100 Occidental Petroleums Corp................. 6,820
136,050 Questar Corp............................... 5,493
225,000 Royal Dutch Petroleum Co................... 12,234
--------
42,729
--------
Retail Stores & Catalog (6.1%):
362,900 Intimate Brands, Inc....................... 7,621
108,050 May Department Stores Co................... 5,105
258,550 Sears Roebuck & Co.(b)..................... 13,897
--------
26,623
--------
Telecommunications (1.3%):
285,500 Frontier Corp.............................. 5,692
--------
Utilities - Gas & Electric (0.7%):
152,000 Central & South West Corp.(b).............. 3,230
--------
Utilities.-.Electric (5.6%):
204,450 Duke Power Co.............................. 9,801
223,200 Florida Power & Light, Inc................. 10,281
127,000 General Public Utility Corp................ 4,556
--------
24,638
--------
Utilities - Gas (1.5%):
124,300 Consolidated Natural Gas Co................ 6,689
--------
Utilities - Water (1.1%):
223,400 American Water Works, Inc.................. 4,775
--------
Total Common Stocks 331,592
--------
Convertible Bonds (17.3%):
Business Services (1.2%):
2,605,000 First Financial Management Corp., 5.00%,
12/15/99 ............................... 5,291
--------
Consumer Goods & Services (2.8%):
8,585,000 Gillette Corp., 2.50%, 3/1/03 ............. 12,352
--------
Financial Services (1.2%):
4,350,000 Solectron Corp., 6.00%, 3/1/06 ............ 5,438
--------
Health Care (1.4%):
5,610,000 Phycor, Inc., 4.50%, 2/15/03 .............. 6,031
--------
Hotels & Lodging (2.9%):
6,325,000 HFS Inc., 4.75%, 3/1/03 ................... 7,337
5,460,000 Signature Resorts, Inc., 5.75%, 1/15/07 ... 5,317
--------
12,654
--------
Industrial Goods & Services (1.1%):
3,965,000 Magna International, 5.00%, 10/15/02 ...... 4,753
--------
Insurance (1.2%):
101,500 Allstate Corp., 6.76%, 4/15/98 ............ 5,278
--------
Retail Stores (3.6%):
9,470,000 Home Depot, Inc., 3.25%, 10/1/01,
Callable: 10/1/99 @ 100.81.............. 10,701
4,380,000 Men's Wearhouse, 5.25%, 3/1/03 ............ 5,015
--------
15,716
--------
Technology (1.9%):
4,280,000 Analog Devices Corp., 3.50%, 12/1/00 ...... 6,131
</TABLE>
107
<PAGE>
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS JUNE 30, 1997
Equity Income Fund
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
- ----------- ------------------------------------------- --------
<S> <C> <C>
Convertible Bonds, continued:
Technology, continued:
$ 2,040,000 VLSI Technology, 8.25%, 10/1/05, Callable
10/3/97 @ 103.3......................... $ 2,045
--------
8,176
--------
Total Convertible Bonds 75,689
--------
Preferred Stocks (5.5%):
Financial Services (3.7%):
73,100 Morgan Stanley............................. 4,870
50,700 SunAmerica, Inc............................ 5,374
215,800 The Money Store, Inc....................... 5,881
--------
16,125
--------
Oil & Gas Industry (1.2%):
275,800 Enron Oil & Gas Corp....................... 5,275
--------
Printing & Publishing (0.6%):
60,100 Houghton Mifflin........................... 2,825
--------
Total Preferred Stocks 24,225
--------
Total Investments, at value 431,506
--------
Repurchase Agreements (1.2%):
5,082,000 Goldman Sachs, 6.14%, 7/1/97
(Collateralized by $6,695,099 FHLMC,
6.20%, 3/15/24, market value--$5,184)... 5,082
--------
Total Repurchase Agreements 5,082
--------
Total (Cost--$302,808)(a) $436,588
========
</TABLE>
- ---------------
Percentages indicated are based on net assets of $437,117.
(a) Represents cost for federal tax purposes and differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation ................. $ 138,163
Unrealized depreciation ................. (4,383)
---------
Net unrealized appreciation ............. $ 133,780
=========
</TABLE>
(b) Represents non-income producing securities.
Continued
108
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
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 Tax-Free Fund, the Treasury Fund, the
Small Capitalization Fund, the Mid Capitalization Fund, the Large
Capitalization Fund, the International Discovery Fund, the Limited Maturity
Bond Fund, the Intermediate Government Obligations Fund, the U.S. Government
Income Fund, the Bond Fund, the Municipal Bond Fund, Michigan Municipal Bond
Fund, the Conservative Allocation Fund, the Balanced Allocation Fund, the
Aggressive Allocation Fund, and the Equity Income Fund (collectively, "the
Funds" and individually, a "Fund"). Sales of shares of the Funds may be made
to customers of First of America Bank--N.A. and its affiliates, to all
accounts of correspondent banks of First of America Bank--N.A. and to the
general public. First of America Investment Corp. ("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 and the U.S.
Government Obligations Fund is to seek current income with liquidity and
stability of principal. The investment objective of the Tax-Free Fund is to
seek as high a level of current interest income free from federal income
taxes as is consistent with the preservation of capital and relative
stability of principal. The investment objective of the Treasury Fund is to
seek current income with liquidity and stability of principal. 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 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 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 International Discovery Fund
is the long-term growth 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 and intangibles tax when received by certain
Shareholders, and to seek preservation of capital. The investment objective
of the Conservative Allocation Fund is to seek current income and
conservation of capital, with a secondary objective of long-term capital
growth. The investment objective of the Balanced Allocation Fund is to seek
current income, long-term capital growth and conservation of capital. The
investment objective of the Aggressive Allocation Fund is to seek capital
appreciation and income growth. 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.
Continued
109
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
The Group has issued two classes of Fund shares in each of the Prime
Obligations Fund, the U.S. Government Obligations Fund, the Tax-Free Fund and
the Treasury Fund (collectively, "the money market funds"): Investor A and
Institutional. The Group has issued four classes of Fund shares in each of
the Small Capitalization Fund, the Mid Capitalization Fund, the Large
Capitalization Fund, the International Discovery Fund, the Limited Maturity
Bond Fund, the Intermediate Government Obligations Fund, the U.S. Government
Income Fund, the Bond Fund, the Balanced Allocation Fund, and the Equity
Income Fund, (collectively, "the variable net asset value funds"): Investor
A, Investor B, Investor C and Institutional. The Group has issued three
classes of Fund shares in each of the Municipal Bond Fund and the Michigan
Municipal Bond Fund: Investor A, Investor B, and Institutional. The Group has
issued one class of Fund shares in each of the Conservative Allocation Fund
and the Aggressive Allocation Fund. 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 five years of purchase (four years if purchased
before 1/1/97) 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 accreted or 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 International Discovery
Fund, the Balanced Allocation Fund and the Aggressive Allocation 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.
Continued
110
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
Dividend income is recorded on the ex-dividend date. Gains or losses
realized from sales of securities are determined by comparing the
identified cost of the security lot sold with the net sales proceeds.
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Discovery Fund, Balanced Allocation Fund, and Aggressive
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.
The International Discovery Fund, Balanced Allocation Fund, and Aggressive
Allocation Fund isolate that portion of the results of operations resulting
from changes in foreign exchange rates from the fluctuation arising from
changes in market prices of securities held.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of portfolio securities, sales of foreign currencies, currency
exchange fluctuations between the trade and settlement dates of securities
transactions, and the difference between the amounts of assets and
liabilities recorded and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise
from changes in the value of assets and liabilities, including investments
in securities, resulting from changes in currency exchange rates.
REPURCHASE AGREEMENTS:
The Funds may acquire repurchase agreements from member banks of the
Federal Deposit Insurance Corporation with capital, surplus and undivided
profits in excess of $100,000,000 (as of the date of their most recently
published financial statements) and from registered broker/dealers which
FIC deems creditworthy under guidelines approved by the Board of Trustees,
subject to the seller's agreement to repurchase such securities at a
mutually agreed-upon date and price. The repurchase price generally equals
the price paid by a Fund plus interest negotiated on the basis of current
short-term rates, which may be more or less than the rate on the underlying
portfolio securities. The seller, under a repurchase agreement, is required
to maintain the value of collateral held pursuant to the agreement at not
less than the repurchase price (including accrued interest). Securities
subject to repurchase agreements are held by the Funds' custodian or
another qualified custodian or in the Federal Reserve/Treasury book-entry
system. Repurchase agreements are considered to be loans by a Fund under
the 1940 Act.
REVERSE REPURCHASE AGREEMENTS:
The Funds may also enter into reverse repurchase agreements, pursuant to
which the Funds would sell portfolio securities to financial institutions
such as banks and broker-dealers, and agree to repurchase them at a
mutually agreed-upon date and price. At the time a Fund enters into a
reverse repurchase agreement, it will place in a segregated custodial
account assets having a value equal to the repurchase price (including
accrued interest), and will subsequently continually monitor the account to
ensure that such equivalent value is maintained at all times. Reverse
repurchase agreements are considered to be borrowings by a Fund under the
1940 Act.
FORWARD CURRENCY CONTRACTS:
The Funds may enter into a forward currency contract ("Forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the Forward fluctuates with changes
in currency exchange rates. The Forward is marked-to-market daily and the
change in market value is recorded by a
Continued
111
<PAGE>
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Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
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, except the Treasury
Fund, (subject to limitations) may lend their portfolio securities to
broker-dealers, banks, or institutional borrowers of securities which have
been determined creditworthy under guidelines established by the Group's
Board of Trustees in exchange for 100% collateral consisting of cash or
securities.
During the time portfolio securities are on loan, the borrower pays the
Fund any dividends or interest received on such securities. Loans are
subject to termination by the Fund or the borrower at any time. While a
Fund does not have the right to vote securities on loan, each Fund intends
to terminate the loan and regain the right to vote if that is considered
important with respect to the investment. In the event the borrower
defaults in its obligation to a Fund, such Fund bears the risk of delay in
the recovery of its portfolio securities and the risk of loss of rights in
the collateral.
At June 30, 1997, the following funds had loaned securities with the
following market value (amounts in thousands):
<TABLE>
<CAPTION>
MARKET VALUE OF
FUND LOANED SECURITIES
---- -----------------
<S> <C>
Mid Capitalization Fund.................................... $208,082
Limited Maturity Fund...................................... 20,945
Intermediate Government Obligations Fund................... 38,494
U.S. Government Income Fund................................ 19,845
Bond Fund.................................................. 87,259
Balanced Fund.............................................. 22,300
</TABLE>
The loaned securities were fully collateralized with cash or securities on
deposit with the Group's custodian.
OPTIONS TRANSACTIONS:
In order to hedge investment positions and facilitate buying and selling
securities, the variable net asset value funds may purchase call and put
options and may write covered call options on individual securities and
futures contracts. By writing call options, the variable net asset value
funds receive a premium and become obligated during the term of the option
to sell securities at a set price if the option is exercised. The variable
net asset value funds will write only covered 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 Small
Capitalization Fund, the Mid Capitalization Fund, the Large Capitalization
Fund, and the Equity Income Fund may also use index options. 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
Continued
112
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
than, in the case of a call, or less than, in the case of a put, the
exercise price of the options. In contrast to exchange-traded options, the
variable net asset value funds may also write over-the-counter options
where the completion of the obligation is dependent upon the credit
standing of the other party. Upon writing a covered option, an amount equal
to the premium is recorded by the variable net asset value funds as an
asset or liability.
The asset or liability is marked-to-market each day to reflect the current
value of the option, resulting in unrealized appreciation or depreciation.
The variable net asset value funds will realize a gain or loss upon
expiration or closing of the option transaction. When an option is
exercised, the premium amount is added to the proceeds from selling call
options or subtracted from the cost of purchasing put options.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized capital gains, if any, are declared and
distributed annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from generally accepted accounting principles. These differences are
primarily due to differing treatments for mortgage-backed securities,
foreign currency transactions, expiring capital loss carryforwards and
deferrals of certain losses. Accordingly, timing differences 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 qualify or continue to qualify as
a regulated investment company by complying with the provisions available
to certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income
and net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
OTHER:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses of the Group are prorated to the
Funds on the basis of relative net assets.
RECLASSIFICATIONS:
Certain reclassifications have been made to the prior year financial
statements and financial highlights in order to conform to the current
period presentation.
Continued
113
<PAGE>
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Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
year ended June 30, 1997 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Small Capitalization Fund.............................. $ 416,320 $ 323,815
Mid Capitalization Fund................................ 242,711 419,669
Large Capitalization Fund.............................. 171,756 153,372
International Discovery Fund........................... 214,307 184,433
Limited Maturity Bond Fund............................. 807,562 808,543
Intermediate Government Obligations Fund............... 3,298,748 3,329,437
U.S. Government Income Fund............................ 1,050,482 1,026,021
Bond Fund.............................................. 4,540,221 4,586,063
Municipal Bond Fund.................................... 91,125 69,378
Michigan Municipal Bond Fund........................... 78,445 64,418
Conservative Allocation Fund........................... 10,650 3,904
Balanced Allocation Fund............................... 805,065 726,183
Aggressive Allocation Fund............................. 44,204 11,749
Equity Income Fund..................................... 83,263 160,183
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT TAX-FREE
OBLIGATIONS FUND OBLIGATIONS FUND FUND TREASURY FUND
---------------------- ------------------- ------------------- -----------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- ---------- --------- -------- --------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 621,672 621,672 $ 730,447 730,448 $ 280,908 280,908 $ 1,034,231 1,034,232
Dividends reinvested... 8,181 8,181 1,537 1,536 824 824 627 627
Shares redeemed........ (582,286) (582,286) (706,845) (706,845) (275,968) (275,968) (1,017,589) (1,017,589)
---------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 47,567 47,567 $ 25,139 25,139 $ 5,764 5,764 $ 17,269 17,270
========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $1,062,801 1,062,797 $ 398,008 398,008 $ 126,130 126,130 $ 689,368 689,368
Dividends reinvested... 12 12 -- -- -- -- -- --
Shares redeemed........ (981,569) (981,569) (395,295) (395,295) (123,383) (123,383) (588,439) (588,439)
---------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 81,244 81,240 $ 2,713 2,713 $ 2,747 2,747 $ 100,929 100,929
========== ========== ========= ======== ========= ======== =========== ==========
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 478,221 478,221 $ 637,510 637,510 $ 241,570 241,570 $ 1,354,172 1,354,172
Dividends reinvested... 6,867 6,867 1,435 1,435 820 820 492 492
Shares redeemed........ (446,172) (446,172) (621,181) (621,181) (245,782) (245,782) (1,301,320) (1,301,320)
---------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ 38,916 38,916 $ 17,764 17,764 $ (3,392) (3,392) $ 53,344 53,344
========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 993,374 993,374 $ 454,210 454,210 $ 134,776 134,776 $ 648,403 648,403
Dividends reinvested... 28 28 64 64 -- -- 1 1
Shares redeemed........ (1,037,700) (1,037,700) (474,388) (474,388) (127,125) (127,125) (617,201) (617,201)
---------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ (44,298) (44,298) $ (20,114) (20,114) $ 7,651 7,651 $ 31,203 31,203
========== ========== ========= ======== ========= ======== =========== ==========
</TABLE>
Continued
114
<PAGE>
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Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID LARGE
CAPITALIZATION CAPITALIZATION CAPITALIZATION INTERNATIONAL
FUND FUND FUND DISCOVERY FUND
------------------ ------------------ ------------------ ------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
--------- ------- --------- ------- --------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 749,582 25,792 $ 188,598 11,587 $ 11,465 899 $ 63,853 4,588
Dividends reinvested... 23,998 841 22,250 1,428 20 2 -- --
Shares redeemed........ (748,306) (25,258) (177,354) (11,083) (2,540) (199) (61,621) (4,425)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 25,274 1,375 $ 33,494 1,932 $ 8,945 702 $ 2,232 163
========= ======= ========= ======= ========= ======= ========= =======
Investor B Shares:
Shares issued.......... $ 22,151 806 7,531 443 $ 3,029 241 $ 3,979 282
Dividends reinvested... 5,725 205 5,491 365 11 1 -- --
Shares redeemed........ (4,442) (170) (2,176) (135) (341) (28) (1,688) (118)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 23,434 841 $ 10,846 673 $ 2,699 214 $ 2,291 164
========= ======= ========= ======= ========= ======= ========= =======
Investor C Shares:
Shares issued.......... $ 9,826 356 1,303 79 $ 43 4 $ 532 36
Dividends reinvested... 1,584 56 458 30 -- -- -- --
Shares redeemed........ (759) (29) (456) (29) (10) (1) (241) (16)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 10,651 383 $ 1,305 80 $ 33 3 $ 291 20
========= ======= ========= ======= ========= ======= ========= =======
Institutional Shares:
Shares issued.......... $ 270,110 9,653 $ 146,813 8,771 $ 137,399 11,403 $ 119,834 8,149
Dividends reinvested... 54,110 1,873 112,225 7,139 2,431 198 62 4
Shares redeemed........ (156,401) (5,260) (231,028) (12,739) (162,472) (12,606) (116,808) (7,985)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase
(decrease)............ $ 167,819 6,266 $ 28,010 3,171 $ (22,642) (1,005) $ 3,088 168
========= ======= ========= ======= ========= ======= ========= =======
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 716,574 24,410 43,954 2,330 $ 1,890 176 $ 176,176 13,523
Dividends reinvested... 11,443 425 1,731 95 1 -- 29 2
Shares redeemed........ (654,377) (22,140) (35,147) (1,871) (314) (29) (176,114) (13,499)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 73,640 2,695 $ 10,538 554 $ 1,577 147 $ 91 26
========= ======= ========= ======= ========= ======= ========= =======
Investor B Shares:
Shares issued.......... $ 14,435 493 8,140 434 $ 807 75 $ 3,847 300
Dividends reinvested... 1,919 72 329 18 -- -- -- --
Shares redeemed........ (1,598) (55) (799) (42) (12) (1) (777) (61)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 14,756 510 $ 7,670 410 $ 795 74 $ 3,070 239
========= ======= ========= ======= ========= ======= ========= =======
Investor C Shares:
Shares issued.......... $ 4,777 164 940 49 $ 2 -- $ 399 30
Dividends reinvested... 67 3 14 1 -- -- 1 --
Shares redeemed........ (181) (6) (118) (6) -- -- (45) (3)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase........... $ 4,663 161 $ 836 44 $ 2 -- $ 355 27
========= ======= ========= ======= ========= ======= ========= =======
Institutional Shares:
Shares issued.......... $ 178,465 6,099 $ 142,068 7,574 $ 268,046 24,775 $ 111,341 8,370
Dividends reinvested... 33,689 1,238 18,788 1,026 228 21 414 33
Shares redeemed........ (175,262) (5,614) (365,658) (18,489) (4,553) (418) (53,166) (4,080)
--------- ------- --------- ------- --------- ------- --------- -------
Net increase
(decrease)............ $ 36,892 1,723 $(204,802) (9,889) $ 263,721 24,378 $ 58,589 4,323
========= ======= ========= ======= ========= ======= ========= =======
</TABLE>
Continued
115
<PAGE>
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Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE
LIMITED MATURITY GOVERNMENT U.S. GOVERNMENT
BOND FUND OBLIGATIONS FUND INCOME FUND BOND FUND
------------------ ------------------- ----------------- -----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- -------- --------- -------- -------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 17,211 1,814 $ 1,090 113 $ 18,605 2,020 $ 4,657 488
Dividends reinvested... 903 95 759 78 2,469 269 938 98
Shares redeemed........ (5,131) (541) (6,308) (649) (14,174) (1,540) (6,371) (666)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ 12,983 1,368 $ (4,459) (458) $ 6,900 749 $ (776) (80)
======== ======= ========= ======= ======== ======= ======== =======
Investor B Shares:
Shares issued.......... $ 457 48 $ 238 24 $ 6,266 681 $ 1,973 205
Dividends reinvested... 68 7 79 8 867 95 221 23
Shares redeemed........ (583) (61) (195) (20) (3,041) (331) (752) (78)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ (58) (6) $ 122 12 $ 4,092 445 $ 1,442 150
======== ======= ========= ======= ======== ======= ======== =======
Investor C Shares:
Shares issued.......... $ 40 4 $ 119 12 $ 66 7 $ 336 35
Dividends reinvested... 1 -- 7 1 5 1 17 2
Shares redeemed........ (11) (1) (13) (1) (71) (8) (62) (6)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase........... $ 30 3 $ 113 12 $ 0 0 $ 291 31
======== ======= ========= ======= ======== ======= ======== =======
Institutional Shares:
Shares issued.......... $ 49,609 5,230 $ 27,055 2,785 $ 47,928 5,204 $ 92,145 9,555
Dividends reinvested... 3,278 346 3,120 322 948 103 22,432 2,332
Shares redeemed........ (53,531) (5,641) (68,086) (7,009) (29,177) (3,165) (181,073) (18,764)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ (644) (65) $ (37,911) (3,902) $ 19,699 2,142 $(66,496) (6,877)
======== ======= ========= ======= ======== ======= ======== =======
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 1,949 203 $ 3,161 321 $ 11,399 1,215 $ 11,308 1,165
Dividends reinvested... 748 78 998 101 2,138 229 848 88
Shares redeemed........ (6,858) (713) (8,204) (830) (11,274) (1,202) (9,229) (948)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ (4,161) (432) $ (4,045) (408) $ 2,263 242 $ 2,927 305
======== ======= ========= ======= ======== ======= ======== =======
Investor B Shares:
Shares issued.......... $ 822 86 $ 1,134 115 $ 12,980 1,387 $ 3,376 347
Dividends reinvested... 51 5 62 6 569 61 115 12
Shares redeemed........ (192) (20) (287) (29) (2,129) (229) (298) (31)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase........... $ 681 71 $ 909 92 $ 11,420 1,219 $ 3,193 328
======== ======= ========= ======= ======== ======= ======== =======
Investor C Shares:
Shares issued.......... $ 11 1 $ 75 7 $ 54 7 $ 322 33
Dividends reinvested... -- -- 2 -- 2 -- 6 1
Shares redeemed........ (1) -- (4) -- (15) (2) (142) (15)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase........... $ 10 1 $ 73 7 $ 41 5 $ 186 19
======== ======= ========= ======= ======== ======= ======== =======
Institutional Shares:
Shares issued.......... $ 31,013 3,225 $ 46,223 4,679 $ 41,249 4,396 $121,608 12,536
Dividends reinvested... 4,061 422 3,811 386 1,213 130 22,854 2,357
Shares redeemed........ (36,944) (3,831) (68,765) (6,955) (19,745) (2,105) (95,486) (9,818)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ (1,870) (184) $ (18,731) (1,890) $ 22,717 2,421 $ 48,976 5,075
======== ======= ========= ======= ======== ======= ======== =======
</TABLE>
Continued
116
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- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND FUND BOND FUND ALLOCATION FUND (A) ALLOCATION FUND
---------------- ---------------- --------------------- ----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- ------ -------- ------ ---------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 8,560 822 $ 7,107 656 $ -- -- $ 3,121 242
Dividends reinvested... 270 26 1,238 114 -- -- 2,336 187
Shares redeemed........ (7,155) (688) (7,170) (662) -- -- (3,299) (260)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ 1,675 160 $ 1,175 108 $ -- -- $ 2,158 169
======== ====== ======== ====== ========== ======== ======== ======
Investor B Shares:
Shares issued.......... $ 341 33 $ 590 54 $ -- -- $ 2,041 160
Dividends reinvested... 23 2 104 10 -- -- 613 49
Shares redeemed........ (177) (17) (806) (74) -- -- (558) (44)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase
(decrease)............ $ 187 18 $ (112) (10) $ -- -- $ 2,096 165
======== ====== ======== ====== ========== ======== ======== ======
Investor C Shares:
Shares issued.......... $ -- -- $ -- -- $ -- -- $ 501 39
Dividends reinvested... -- -- -- -- -- -- 66 5
Shares redeemed........ -- -- -- -- -- -- (132) (10)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ -- -- $ -- -- $ -- -- $ 435 34
======== ====== ======== ====== ========== ======== ======== ======
Institutional Shares:
Shares issued.......... $ 21,299 2,027 $ 35,903 3,317 $ 11,873 1,175 $161,814 12,910
Dividends reinvested... 393 37 1,118 103 122 12 14,642 1,172
Shares redeemed........ (20,929) (1,994) (29,433) (2,720) (1,958) (194) (46,444) (3,683)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ 763 70 $ 7,588 700 $ 10,037 993 $130,012 10,399
======== ====== ======== ====== ========== ======== ======== ======
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 15,920 1,523 $ 4,251 389 $ -- -- $ 4,769 374
Dividends reinvested... 285 27 1,256 116 -- -- 967 76
Shares redeemed........ (19,806) (1,894) (6,722) (619) -- -- (2,876) (225)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase
(decrease)............ $ (3,601) (344) $ (1,215) (114) $ -- -- $ 2,860 225
======== ====== ======== ====== ========== ======== ======== ======
Investor B Shares:
Shares issued.......... $ 490 47 $ 1,672 154 $ -- -- $ 2,848 222
Dividends reinvested... 15 1 90 8 -- -- 154 12
Shares redeemed........ (211) (20) (454) (42) -- -- (261) (20)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ 294 28 $ 1,308 120 $ -- -- $ 2,741 214
======== ====== ======== ====== ========== ======== ======== ======
Investor C Shares:
Shares issued.......... $ -- -- $ -- -- $ -- -- $ 372 29
Dividends reinvested... -- -- -- -- -- -- 12 1
Shares redeemed........ -- -- -- -- -- -- (162) (12)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ -- -- $ -- -- $ -- -- $ 222 18
======== ====== ======== ====== ========== ======== ======== ======
Institutional Shares:
Shares issued.......... $ 21,245 2,020 $ 35,762 3,288 $ -- -- $ 34,675 2,705
Dividends reinvested... 354 34 1,228 113 -- -- 5,513 435
Shares redeemed........ (24,461) (2,322) (28,002) (2,571) -- -- (25,365) (1,977)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase
(decrease)............ $ (2,862) (268) $ 8,988 830 $ -- -- $ 14,823 1,163
======== ====== ======== ====== ========== ======== ======== ======
</TABLE>
- -------
(a) For the period from December 30, 1996 (commencement of operations) through
June 30, 1997.
Continued
117
<PAGE>
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- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
(Amounts in Thousands)
<CAPTION>
AGGRESSIVE EQUITY
ALLOCATION FUND (A) INCOME FUND
--------------------- -----------------
AMOUNT SHARES AMOUNT SHARES
---------- --------- --------- ------
<S> <C> <C> <C> <C>
For the year ended June 30, 1997:
Investor A Shares:
Shares issued....................... $ -- -- $ 17,476 991
Dividends reinvested................ -- -- 9,217 539
Shares redeemed..................... -- -- (19,770) (1,112)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 6,923 418
========== ======== ========= ======
Investor B Shares:
Shares issued....................... $ -- -- $ 6,794 385
Dividends reinvested................ -- -- 1,506 88
Shares redeemed..................... -- -- (1,807) (103)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 6,493 370
========== ======== ========= ======
Investor C Shares:
Shares issued....................... $ -- -- $ 608 35
Dividends reinvested................ -- -- 28 1
Shares redeemed..................... -- -- (94) (5)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 542 31
========== ======== ========= ======
Institutional Shares:
Shares issued....................... $ 39,922 3,954 $ 53,563 3,180
Dividends reinvested................ 195 19 7,868 460
Shares redeemed..................... (2,857) (281) (116,931) (6,623)
---------- -------- --------- ------
Net increase (decrease)............. $ 37,260 3,692 $ (55,500) (2,983)
========== ======== ========= ======
For the year ended June 30, 1996:
Investor A Shares:
Shares issued....................... $ -- -- $ 10,168 632
Dividends reinvested................ -- -- 3,421 213
Shares redeemed..................... -- -- (15,766) (989)
---------- -------- --------- ------
Net (decrease)...................... $ -- -- $ (2,177) (144)
========== ======== ========= ======
Investor B Shares:
Shares issued....................... $ -- -- $ 4,807 295
Dividends reinvested................ -- -- 342 21
Shares redeemed..................... -- -- (1,279) (80)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 3,870 236
========== ======== ========= ======
Investor C Shares:
Shares issued....................... $ -- -- $ 125 7
Dividends reinvested................ -- -- 3 --
Shares redeemed..................... -- -- (4) --
---------- -------- --------- ------
Net increase........................ $ -- -- $ 124 7
========== ======== ========= ======
Institutional Shares:
Shares issued....................... $ -- -- $ 35,336 2,196
Dividends reinvested................ -- -- 3,586 224
Shares redeemed..................... -- -- (108,373) (6,811)
---------- -------- --------- ------
Net decrease........................ $ -- -- $ (69,451) (4,391)
========== ======== ========= ======
</TABLE>
- -------
(a) For the period from December 30, 1996 (commencement of operations) through
June 30, 1997.
Continued
118
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds JUNE 30, 1997
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
Conservative Allocation Fund, the Balanced Allocation Fund, the Aggressive
Allocation 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 advisory agreement, Gulfstream is entitled to receive fees
from FIC based on a percentage of the average daily net assets of the
International Discovery Fund, and based on a percentage of the average daily
net assets of the Conservative Allocation Fund, the Balanced Allocation Fund
and the Aggressive Allocation Fund assets invested in foreign securities.
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 a trustee of the Group are affiliated,
serves the Group as Administrator. Such officers and trustees are paid no
fees directly by the funds for serving as officers and trustees of the Group.
Under the terms of the administration agreement, BISYS's fees are computed at
0.20% of the average daily net assets of each Fund. BISYS also serves the
Group as Distributor and is entitled to receive commissions on sales of
shares of the variable net asset value funds. For the year ended June 30,
1997, BISYS received $3,523,450 in commissions from sales of shares of the
variable net asset value funds of which $282,054 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
distribution and/or service fee, 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.
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended June 30, 1997(amounts in thousands):
<TABLE>
<CAPTION>
U.S.
PRIME GOVERNMENT TAX-
OBLIGATIONS OBLIGATIONS FREE TREASURY
FUND FUND FUND FUND
----------- ----------- ----- --------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.40% 0.40% 0.40% 0.40%
ADMINISTRATION FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 169 $ 84 $ 32 $ 404
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions............. $ 263 $ 297 $ 77 $ 193
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES....................... $ 210 $ 118 $ 73 $ 115
</TABLE>
Continued
119
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY
FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 1.00% 1.00% 0.80% (b)
ADMINISTRATION FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.20% 0.20% 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.75% 0.75% 0.75% 0.75%
SHAREHOLDER SERVICE FEES
INVESTOR B:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.25% 0.25% 0.25% 0.25%
SHAREHOLDER SERVICE FEES
INVESTOR C:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.25% 0.25% 0.25% 0.25%
TRANSFER AGENT AND MU-
TUAL FUND ACCOUNTANT
FEES................... $561 $426 $166 $427
</TABLE>
Continued
120
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
LIMITED INTERMEDIATE U.S.
MATURITY GOVERNMENT GOVERNMENT
BOND OBLIGATIONS INCOME BOND
FUND FUND FUND 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 reductions... $290 $ 87 $620 $207
ADMINISTRATION FEES:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions... $ 76 $114 $107 $271
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...... $151 $169 $244 $279
</TABLE>
Continued
121
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND (A) FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.74% 0.74% 1.00% 1.00%
Voluntary fee reductions......... $270 $438 $ 13 $485
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions......... $143 $232 -- --
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.75% 0.75% -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR
B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR
C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.25%
TRANSFER AGENT AND MUTUAL FUND
ACCOUNTANT FEES................. $121 $174 $ 24 $183
</TABLE>
Continued
122
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY
ALLOCATION INCOME
FUND (A) FUND
---------- ------
<S> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 1.00% 1.00%
Voluntary fee reductions.................................... $20 --
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES.............. $25 $347
</TABLE>
- -------
(a)For the period from December 30, 1996 (commencement of operations) through
June 30, 1997.
(b) Investment advisory fees for the International Discovery Fund are
calculated as 1.25% of the first $50 million, 1.20% of the next $50
million, 1.15% of the next $300 million, and 1.05% over $400 million.
Continued
123
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
6. FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For the taxable year ended June 30, 1997, the following percentages of income
dividends paid by the Funds qualify for the dividends received deduction
available to corporations:
<TABLE>
<CAPTION>
QUALIFIED
DIVIDEND INCOME
---------------
<S> <C>
Large Capitalization Fund..................................... 92.43%
Conservative Allocation Fund.................................. 4.19%
Balanced Allocation Fund...................................... 7.46%
Aggressive Allocation Fund.................................... 17.08%
Equity Income Fund............................................ 100.00%
</TABLE>
For federal income tax purposes, the following Funds have capital loss
carryforwards as of June 30, 1997, which are available to offset future
capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------- -------
<S> <C> <C>
U.S. Government Obligations Fund.............................. $ 5 2002
Limited Maturity Bond Fund.................................... 4,367 2002
2,458 2003
479 2004
1,140 2005
Intermediate Government Obligations Fund...................... 9,090 2002
2,891 2003
2,923 2005
U.S. Government Income Fund................................... 5,235 2003
1,271 2004
2,853 2005
Bond Fund..................................................... 15,701 2003
2,129 2005
</TABLE>
Continued
124
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
Under current tax law, capital losses and foreign currency losses realized
after October 31, 1996 may be deferred and treated as occurring on the first
day of the fiscal year ended June 30, 1998. As of June 30, 1997, the
following funds have deferred losses of (amounts in thousands):
<TABLE>
<S> <C>
U.S. Government Obligations Fund........................................ $ 3
International Discovery Fund............................................ 716
Limited Maturity Bond Fund.............................................. 565
U.S. Government Income Fund............................................. 167
Conservative Allocation Fund............................................ 99
Balanced Allocation Fund................................................ 39
Aggressive Allocation Fund.............................................. 635
</TABLE>
During the year ended June 30, 1997, the Tax-Free Fund, the Municipal Bond
Fund, and the Michigan Municipal Bond Fund declared $4,526,892, $5,968,136,
and $10,259,945, respectively, of tax-exempt income distributions.
During the year ended June 30, 1997, the Funds declared long-term capital
distributions in the following amounts (amounts in thousands):
<TABLE>
<S> <C>
Small Capitalization Fund........................................... $111,642
Mid Capitalization Fund............................................. 197,231
Municipal Bond Fund................................................. 682
Michigan Municipal Bond Fund........................................ 528
Balanced Allocation Fund............................................ 15,352
Equity Income Fund.................................................. 33,364
</TABLE>
Continued
125
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds June 30, 1997
The percentage break-down of the exempt-interest by state for the Funds'
taxable year ended June 30, 1997 was as follows:
<TABLE>
<CAPTION>
MICHIGAN
TAX-FREE MUNICIPAL MUNICIPAL
FUND BOND FUND BOND FUND
-------- --------- ---------
<S> <C> <C> <C>
Alabama.......................................... 3.6% 0.6%
Arizona.......................................... 3.3%
California....................................... 0.2% 1.9%
Colorado......................................... 2.8% 2.1%
Connecticut...................................... 1.0% 1.4%
Delaware......................................... 5.8% 1.9%
Florida.......................................... 3.8%
Georgia.......................................... 4.6% 4.3%
Guam............................................. 1.0%
Hawaii........................................... 0.1% 0.1%
Idaho............................................ 1.5%
Illinois......................................... 0.8%
Indiana.......................................... 3.7%
Kansas........................................... 7.3% 0.8%
Kentucky......................................... 3.0% 1.3%
Louisiana........................................ 1.0%
Maryland......................................... 3.6% 9.0%
Massachusetts.................................... 0.2% 3.1%
Michigan......................................... 9.8% 3.3% 91.1%
Minnesota........................................ 8.0% 1.1%
Mississippi...................................... 0.4%
Missouri......................................... 3.1%
Montana.......................................... 1.2%
Nevada........................................... 2.4%
New Hampshire.................................... 2.0% 3.9%
New Jersey....................................... 1.7%
New Mexico....................................... 1.4%
New York......................................... 1.0% 6.9%
North Carolina................................... 0.6% 2.9%
Ohio............................................. 0.6% 4.0%
Oklahoma......................................... 0.2% 3.1%
Oregon........................................... 1.0% 2.8%
Pennsylvania..................................... 6.0% 0.2%
Puerto Rico...................................... 10.3% 8.0%
South Carolina................................... 1.6% 1.5%
South Dakota..................................... 0.8%
Tennessee........................................ 3.9%
Texas............................................ 10.6% 4.6%
Utah............................................. 2.5% 0.1%
Vermont.......................................... 1.5%
Virginia......................................... 2.0% 0.8%
Virgin Islands................................... 0.4% 0.9%
Washington....................................... 1.6% 2.7%
Wisconsin........................................ 4.6% 0.6%
Wyoming.......................................... 8.5%
----- ----- -----
Total............................................ 100.0% 100.0% 100.0%
===== ===== =====
</TABLE>
126
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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......... 0.048 0.049 0.050 0.051 0.047 0.048 0.027 0.028
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income......... (0.048) (0.049) (0.050) (0.051) (0.047) (0.048) (0.027) (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..... 4.91% 5.01% 5.07% 5.17% 4.81 % 4.91% 2.75% 2.85%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $195,046 $677,324 $147,478 $596,075 $108,565 $640,380 $105,611 $561,697
Ratio of expenses
to average net
assets ......... 0.73% 0.63% 0.74% 0.64% 0.75% 0.65% 0.74% 0.64%
Ratio of net
investment
income to
average net
assets.......... 4.80% 4.90% 4.93% 5.05% 4.71% 4.83% 2.71% 2.84%
Ratio of expenses
to average net
assets*......... 0.90% 0.65% 0.91% 0.66% 0.92% 0.67% 0.91% 0.66%
Ratio of net
investment
income to
average net
assets*......... 4.63% 4.88% 4.76% 5.03% 4.54% 4.81% 2.54% 2.82%
</TABLE>
<TABLE>
<CAPTION>
PRIME OBLIGATIONS 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......... 0.028 0.029
-------- --------
Distributions
Net investment
income......... (0.028) (0.029)
-------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000
======== ========
Total Return..... 2.89% 2.91%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $129,433 $478,821
Ratio of expenses
to average net
assets ......... 0.66% 0.64%
Ratio of net
investment
income to
average net
assets.......... 2.86% 2.88%
Ratio of expenses
to average net
assets*......... 0.71% 0.66%
Ratio of net
investment
income to
average net
assets*......... 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.
See notes to financial statements.
127
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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......... 0.047 0.048 0.049 0.050 0.047 0.048 0.027 0.028
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income......... (0.047) (0.048) (0.049) (0.050 ) (0.047) (0.048) (0.027) (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..... 4.79% 4.89% 4.99% 5.10 % 4.76% 4.87% 2.69% 2.79%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $212,082 $210,162 $186,944 $207,451 $169,179 $227,565 $172,482 $192,612
Ratio of expenses
to average net
assets.......... 0.74% 0.64% 0.74% 0.64% 0.77% 0.67% 0.77% 0.67%
Ratio of net
investment
income to
average net
assets.......... 4.69% 4.79% 4.88% 4.99% 4.62% 4.76% 2.64% 2.74%
Ratio of expenses
to average net
assets*......... 0.91% 0.66% 0.91% 0.66% 0.94% 0.69% 0.94% 0.69%
Ratio of net
investment
income to
average net
assets*......... 4.52% 4.77% 4.71% 4.97% 4.45% 4.74% 2.47% 2.72%
</TABLE>
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS 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......... 0.028 0.028
-------- --------
Distributions
Net investment
income......... (0.028) (0.028)
-------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000
======== ========
Total Return..... 2.84% 2.86%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $208,311 $223,855
Ratio of expenses
to average net
assets.......... 0.66% 0.64%
Ratio of net
investment
income to
average net
assets.......... 2.79% 2.81%
Ratio of expenses
to average net
assets*......... 0.72% 0.66%
Ratio of net
investment
income to
average net
assets*......... 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.
See notes to financial statements.
128
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TAX-FREE FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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......... 0.028 0.029 0.029 0.030 0.029 0.030 0.018 0.019
------- -------- ------- -------- ------- ------- ------- -------
Distributions
Net investment
income......... (0.028) (0.029) (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..... 2.83% 2.94% 2.91% 3.02% 2.90% 3.00% 1.81% 1.92%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $47,466 $108,884 $41,713 $106,154 $45,102 $98,489 $48,256 $84,465
Ratio of expenses
to average net
assets.......... 0.78% 0.68% 0.76% 0.66% 0.74% 0.64% 0.68% 0.58%
Ratio of net
investment
income to
average net
assets.......... 2.82% 2.90% 2.89% 2.97% 2.88% 2.97% 1.81% 1.90%
Ratio of expenses
to average net
assets*......... 0.95% 0.70% 0.93% 0.68% 0.95% 0.70% 0.93% 0.68%
Ratio of net
investment
income to
average net
assets*......... 2.65% 2.88% 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.
See notes to financial statements.
129
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TREASURY FUND
------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------- DECEMBER 1, 1993 TO
1997 1996 1995 JUNE 30, 1994 (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............. 0.047 0.048 0.049 0.050 0.047 0.048 0.016 0.017
-------- -------- -------- -------- -------- -------- ------- -------
Distributions
Net investment
income............. (0.047) (0.048) (0.049) (0.050) (0.047) (0.048) (0.016) (0.017)
-------- -------- -------- -------- -------- -------- ------- -------
NET ASSET VALUE, END
OF PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======= =======
Total Return......... 4.82% 4.93% 5.04% 5.14% 4.81% 4.91% 1.66% 1.72%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........ $176,006 $324,377 $158,723 $223,416 $105,391 $192,232 $56,535 $76,035
Ratio of expenses to
average net assets.. 0.67% 0.57% 0.70% 0.60% 0.75% 0.64% 0.64%(b) 0.54%(b)
Ratio of net
investment income to
average net assets.. 4.72% 4.83% 4.87% 4.98% 4.82% 4.95% 2.84%(b) 3.15%(b)
Ratio of expenses to
average net assets*. 0.92% 0.67% 0.95% 0.70% 1.04% 0.78% 0.99%(b) 0.74%(b)
Ratio of net
investment income to
average net assets*. 4.47% 4.73% 4.62% 4.88% 4.52% 4.81% 2.49%(b) 2.95%(b)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
See notes to financial statements.
130
<PAGE>
- --------------------------------------------------------------------------------
[This page has been left blank intentionally.]
131
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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........... (0.29) (0.41) (0.34) (0.22) (0.23) (0.39) (0.20) (0.27)
Net realized and
unrealized
gains (losses)
from
investments.... (1.08) (1.13) (1.19) (1.12) 12.17 12.03 11.77 12.34
-------- ------- ------- -------- -------- ------- ------- --------
Total from
Investment
Activities..... (1.37) (1.54) (1.53) (1.34) 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... $ 27.55 $ 26.99 $ 27.05 $ 27.91 $ 34.17 $ 33.78 $ 33.83 $ 34.50
======== ======= ======= ======== ======== ======= ======= ========
Total Return
(excludes sales
and redemption
charges)........ (4.53)% (5.13)% (5.08)% (4.39)% 49.93% 48.87% 48.32% 50.03%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $188,645 $46,895 $14,962 $602,787 $187,016 $30,310 $ 5,751 $528,866
Ratio of expenses
to average net
assets.......... 1.57% 2.32% 2.32% 1.32% 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss
to average net
assets.......... (1.19)% (1.94)% (1.94)% (0.94)% (1.18)% (1.93)% (1.94)% (0.93)%
Ratio of expenses
to average net
assets*......... 1.57% 2.32% 2.32% 1.32% 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss
to average net
assets*......... (1.19)% (1.94)% (1.94)% (0.94)% (1.18)% (1.93)% (1.94)% (0.93)%
Portfolio
turnover (f).... 48.45% 48.45% 48.45% 48.45% 67.22% 67.22% 67.22% 67.22%
Average
commission rate
paid (g)........ $ 0.0788 $0.0788 $0.0788 $ 0.0788 $ 0.0800 $0.0800 $0.0800 $ 0.0800
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
132
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
See notes to financial statements.
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND, CONTINUED
--------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------
1995 1994
--------------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C)
---------- ---------- -------------- ------------- ---------- --------------
<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 ......... (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,
---------------------------------------
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 ......... (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 loss
to average net
assets*......... (1.14)% (1.09)% (1.01)%
Portfolio
turnover (f).... 72.64% 71.21% 71.21%
</TABLE>
133
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID-CAPITALIZATION FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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.......... $ 20.71 $ 20.28 $ 20.36 $ 20.83 $ 16.56 $ 16.35 $ 16.40 $ 16.62
Investment
Activities
Net investment
loss........... (0.16) (0.24) (0.21) (0.13) (0.16) (0.23) (0.17) (0.16)
Net realized and
unrealized
gains from
investments.... 1.30 1.21 1.22 1.25 4.97 4.82 4.79 5.03
------- ------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities..... 1.14 0.97 1.01 1.12 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... $ 15.72 $ 15.12 $ 15.24 $ 15.82 $ 20.71 $ 20.28 $ 20.36 $ 20.83
======= ======= ======== ======== ======== ======== ======== ========
Total Return
(excludes sales
and redemption
charges)........ 5.78% 4.94% 5.17% 5.58% 29.57% 28.59% 28.69% 29.83%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $80,634 $21,994 $ 2,018 $544,082 $ 66,260 $ 15,840 $ 1,088 $650,495
Ratio of expenses
to average net
assets.......... 1.56% 2.31% 2.31% 1.31% 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss
to average net
assets.......... (1.05)% (1.80)% (1.80)% (0.80)% (0.94)% (1.70)% (1.73)% (0.68)%
Ratio of expenses
to average net
assets*......... 1.56% 2.31% 2.31% 1.31% 1.54% 2.29% 2.29% 1.29%
Ratio of net
investment loss
to average net
assets*......... (1.05)% (1.80)% (1.80)% (0.80)% (0.94)% (1.71)% (1.74)% (0.68)%
Portfolio
turnover (f).... 38.47% 38.47% 38.47% 38.47% 49.27% 49.27% 49.27% 49.27%
Average
commission rate
paid (g)........ $0.0794 $0.0794 $ 0.0794 $ 0.0794 $ 0.0796 $ 0.0796 $ 0.0796 $ 0.0796
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
134
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID-CAPITALIZATION FUND, CONTINUED
-------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------
1995 1994
---------------------------------------------------- --------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C)
---------- ---------- -------------- ------------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 14.69 $14.63 $16.29 $ 14.70 $ 15.11 $ 16.66
------- ------ ------ -------- ------- -------
Investment
Activities
Net investment
loss........... (0.12) (0.11) (0.02) (0.08) (0.10) (0.05)
Net realized and
unrealized
gains (losses)
from
investments.... 3.46 3.30 1.60 3.47 (0.28) (1.98)
------- ------ ------ -------- ------- -------
Total from
Investment
Activities..... 3.34 3.19 1.58 3.39 (0.38) (2.03)
------- ------ ------ -------- ------- -------
Distributions
Net investment
income.......... -- -- -- -- -- --
Net realized
gains.......... (0.48) (0.48) -- (0.49) (0.04) --
In excess of net
realized gains. (0.99) (0.99) (1.47) (0.98) -- --
------- ------ ------ -------- ------- -------
Total
Distributions.. (1.47) (1.47) (1.47) (1.47) (0.04) --
------- ------ ------ -------- ------- -------
NET ASSET VALUE,
END OF PERIOD... $ 16.56 $16.35 $16.40 $ 16.62 $ 14.69 $ 14.63
======= ====== ====== ======== ======= =======
Total Return
(excludes sales
and redemption
charges)........ 24.85% 23.88% 23.56%(e) 25.20% (2.57)% (12.18)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end
of
period (000).... $43,803 $6,073 $ 153 $683,320 $36,108 $ 1,616
Ratio of expenses
to average net
assets.......... 1.51% 2.29% 2.27%(b) 1.29% 1.38% 2.30%(b)
Ratio of net
investment loss
to average net
assets.......... (0.87)% (1.61)% (1.43)%(b) (0.64)% (0.75)% (1.57)%(b)
Ratio of expenses
to average net
assets*......... 1.54% 2.54% 2.53%(b) 1.29% 1.53% 2.56%(b)
Ratio of net
investment loss
to average net
assets*......... (0.90)% (1.87)% (1.70)%(b) (0.65)% (0.90)% (1.83)%(b)
Portfolio
turnover (f).... 46.39% 46.39% 46.39% 46.39% 70.87% 70.87%
<CAPTION>
MID-CAPITALIZATION FUND, CONTINUED
---------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------
1993 (A)
------------- -------------------------
INSTITUTIONAL INVESTOR A INSTITUTIONAL
------------- ---------- -------------
<S> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 15.10 $ 12.80 $ 12.80
-------- ------- --------
Investment
Activities
Net investment
loss........... (0.11) (0.01) (0.01)
Net realized and
unrealized
gains (losses)
from
investments.... (0.25) 2.74 2.73
-------- ------- --------
Total from
Investment
Activities..... (0.36) 2.73 2.72
-------- ------- --------
Distributions
Net investment
income.......... -- (0.02) (0.02)
Net realized
gains.......... (0.04) (0.40) (0.40)
In excess of net
realized gains. -- -- --
-------- ------- --------
Total
Distributions.. (0.04) (0.42) (0.42)
-------- ------- --------
NET ASSET VALUE,
END OF PERIOD... $ 14.70 $ 15.11 $ 15.10
======== ======= ========
Total Return
(excludes sales
and redemption
charges)........ (2.44)% 21.42% 21.34%
RATIOS/SUPPLEMENTAR
Net Assets at end
of
period (000).... $533,260 $26,460 $595,127
Ratio of expenses
to average net
assets.......... 1.28% 1.28% 1.24%
Ratio of net
investment loss
to average net
assets.......... (0.65)% (0.12)% (0.09)%
Ratio of expenses
to average net
assets*......... 1.28% 1.35% 1.27%
Ratio of net
investment loss
to average net
assets*......... (0.65)% (0.19)% (0.11)%
Portfolio
turnover (f).... 70.87% 66.48% 66.48%
</TABLE>
See notes to financial statements.
135
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LARGE CAPITALIZATION FUND
--------------------------------------------------
YEAR ENDED JUNE 30, 1997
-------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 11.23 $ 11.22 $ 11.16 $ 11.25
------- ------- ------- --------
Investment
Activities
Net investment
income (loss).. -- (0.05) (0.06) 0.03
Net realized and
unrealized
gains from
investments.... 3.30 3.25 3.27 3.31
------- ------- ------- --------
Total from
Investment
Activities..... 3.30 3.20 3.21 3.34
------- ------- ------- --------
Distributions
Net investment
income......... (0.01) -- (0.01) (0.03)
In excess of net
investment
income......... -- -- -- --
Net realized
gains.......... (0.08) (0.08) (0.08) (0.08)
------- ------- ------- --------
Total
Distributions.. (0.09) (0.08) (0.09) (0.11)
------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD... $ 14.44 $ 14.34 $ 14.28 $ 14.48
======= ======= ======= ========
Total Return
(excludes sales
and redemption
charges)........ 29.52% 28.62% 28.82% 29.81%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $12,260 $ 4,130 $ 42 $338,388
Ratio of expenses
to average
net assets...... 1.37% 2.12% 2.12% 1.12%
Ratio of net
investment
income (loss) to
average net
assets.......... (0.14)% (0.88)% (0.91)% 0.19%
Ratio of expenses
to average
net assets*..... 1.37% 2.12% 2.12% 1.12%
Ratio of net
investment
income (loss) to
average net
assets*......... (0.14)% (0.88)% (0.91)% 0.19%
Portfolio
turnover (c).... 48.44% 48.44% 48.44% 48.44%
Average
commission rate
paid (d)........ $0.0932 $0.0932 $0.0932 $ 0.0932
<CAPTION>
LARGE CAPITALIZATION FUND
----------------------------------------------------------
DECEMBER 28, 1995 TO JUNE 30, 1996(A)
----------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 11.25 $ 10.00 $ 10.00 $ 10.00
------- ------- ------- --------
Investment
Activities
Net investment
income (loss).. 0.03 0.01 -- 0.03
Net realized and
unrealized
gains from
investments.... 1.23 1.23 1.17 1.25
------- ------- ------- --------
Total from
Investment
Activities..... 1.26 1.24 1.17 1.28
------- ------- ------- --------
Distributions
Net investment
income......... (0.03) (0.02) -- (0.03)
In excess of net
investment
income......... -- -- (0.01) --
Net realized
gains.......... -- -- -- --
------- ------- ------- --------
Total
Distributions.. (0.03) (0.02) (0.01) (0.03)
------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD... $ 11.23 $ 11.22 $ 11.16 $ 11.25
======= ======= ======= ========
Total Return
(excludes sales
and redemption
charges)........ 8.99% 8.77% 8.14% 12.86%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $ 1,657 $ 832 $ 2 $274,150
Ratio of expenses
to average
net assets...... 1.40%(b) 1.78%(b) 2.24%(b) 2.19%(b)
Ratio of net
investment
income (loss) to
average net
assets.......... 0.31%(b) (0.32)%(b) (0.45)%(b) 1.26%(b)
Ratio of expenses
to average
net assets*..... 2.62%(b) 4.07%(b) 4.25%(b) 2.26%(b)
Ratio of net
investment
income (loss) to
average net
assets*......... (0.91)%(b) (2.61)%(b) (2.46)%(b) 1.19%(b)
Portfolio
turnover (c).... 0.86% 0.86% 0.86% 0.86%
Average
commission rate
paid (d)........ $0.0800 $0.0800 $0.0800 $ 0.0800
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
136
<PAGE>
- --------------------------------------------------------------------------------
[This page has been left blank intentionally.]
137
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
---------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------
1997 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 income
(loss)................ (0.07) (0.16) (0.15) (0.05) (0.02) (0.08) (0.10) 0.02
Net realized and
unrealized gains from
investments and
foreign currencies.... 2.31 2.24 2.28 2.35 1.81 1.70 1.79 1.80
------- ------- ------- -------- ------- ------- ------- --------
Total from Investment
Activities............ 2.24 2.08 2.13 2.30 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................. $ 16.25 $ 15.85 $ 16.21 $ 16.41 $ 14.01 $ 13.77 $ 14.08 $ 14.11
======= ======= ======= ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 15.99% 15.11% 15.13% 16.34% 14.65% 13.33% 13.62% 14.76%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $48,557 $13,516 $ 875 $426,111 $39,575 $ 9,489 $ 474 $364,095
Ratio of expenses to
average net assets..... 1.80% 2.55% 2.56% 1.55% 1.80% 2.55% 2.50% 1.55%
Ratio of net investment
income (loss) to
average net assets..... (0.54)% (1.29)% (1.28)% (0.29)% (0.11)% (0.86)% (0.84)% 0.12%
Ratio of expenses to
average net assets*.... 1.80% 2.55% 2.56% 1.55% 1.88% 2.63% 2.62% 1.55%
Ratio of net investment
income (loss) to
average net assets*.... (0.54)% (1.29)% (1.28)% (0.29)% (0.19)% (0.94)% (0.97)% 0.12%
Portfolio turnover (g).. 45.18% 45.18% 45.18% 45.18% 54.47% 54.47% 54.47% 54.47%
Average commission rate
paid (h)............... $0.0329 $0.0329 $0.0329 $ 0.0329 $0.0321 $0.0321 $0.0321 $ 0.0321
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Period from commencement of operations.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
138
<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(D) INSTITUTIONAL INVESTOR A INVESTOR B(C) 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.......... (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)%(f) (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>
--------------------------
--------------------------
DECEMBER 29, 1992 TO
JUNE 30 1993(A)(E)
---------------------------
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.......... -- --
------ --------
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%
</TABLE>
See notes to financial statements.
139
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.. 0.55 0.48 0.48 0.57 0.62 0.55 0.58 0.65
Net realized and
unrealized gains
(losses) from
investments........... 0.01 0.02 -- 0.02 (0.21) (0.22) (0.23) (0.21)
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.56 0.50 0.48 0.59 0.41 0.33 0.35 0.44
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.55) (0.47) (0.48) (0.58) (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.... (0.55) (0.47) (0.48) (0.58) (0.64) (0.57) (0.59) (0.67)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.49 $ 9.49 $ 9.29 $ 9.49 $ 9.48 $ 9.46 $ 9.29 $ 9.48
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 6.11% 5.39% 5.26% 6.42% 4.37% 3.43% 3.71% 4.65%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $27,381 $1,492 $ 41 $136,126 $14,390 $1,547 $ 11 $136,681
Ratio of expenses to
average net assets..... 1.11% 1.86% 1.86% 0.85% 1.09% 1.84% 1.82% 0.84%
Ratio of net investment
income to average net
assets................. 5.76% 5.02% 4.97% 6.03% 6.09% 5.35% 5.34% 6.32%
Ratio of expenses to
average net assets*.... 1.35% 2.10% 2.10% 1.10% 1.33% 2.08% 2.02% 1.08%
Ratio of net investment
income to average net
assets*................ 5.52% 4.78% 4.73% 5.78% 5.85% 5.11% 5.14% 6.08%
Portfolio turnover (f).. 607.84% 607.84% 607.84% 607.84% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
140
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND, CONTINUED
-------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------- ----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONALL
---------- ---------- -------------- ------------- ---------- -------------- --------------
<S> <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
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income......... 0.56 0.49 0.20 0.58 0.62 0.23 0.64
Net realized and
unrealized
gains (losses)
from
investments.... 0.13 0.12 0.17 0.13 (0.58) (0.44) (0.59)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.69 0.61 0.37 0.71 0.04 (0.21) 0.05
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.55) (0.47) (0.19) (0.57) (0.61) (0.22) (0.62)
Net realized
gains.......... -- -- -- -- -- -- --
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)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.57
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 7.53% 6.68% 3.58%(e) 7.76% 0.32% (2.09)% 0.43%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $18,930 $ 892 -- $141,781 $24,907 $ 629 $156,678
Ratio of expenses
to average net
assets.......... 1.05% 1.85% 1.18%(b) 0.84% 0.86% 1.78%(b) 0.76%
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%
Ratio of expenses
to average net
assets*......... 1.36% 2.36% 1.18%(b) 1.11% 1.30% 2.33%(b) 1.05%
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%
Portfolio
turnover (f).... 397.97% 397.97% 397.97% 397.97% 353.28% 353.28% 353.28%
<CAPTION>
LIMITED MATURITY BOND
FUND, CONTINUED
------------------------
YEAR ENDED JUNE 30,
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.25 $ 10.25
------- --------
Investment
Activities
Net investment
income......... 0.65 0.65
Net realized and
unrealized
gains (losses)
from
investments.... 0.13 0.13
------- --------
Total from
Investment
Activities..... 0.78 0.78
------- --------
Distributions
Net investment
income......... (0.69) (0.69)
Net realized
gains.......... (0.16) (0.16)
In excess of net
realized gains. -- --
------- --------
Total
Distributions.. (0.85) (0.85)
------- --------
NET ASSET VALUE,
END OF PERIOD... $ 10.18 $ 10.18
======= ========
Total Return
(excludes sales
and redemption
charges)........ 7.96% 7.98%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $18,060 $141,706
Ratio of expenses
to average net
assets.......... 0.75% 0.72%
Ratio of net
investment
income to
average net
assets.......... 6.41% 6.45%
Ratio of expenses
to average net
assets*......... 1.08% 1.01%
Ratio of net
investment
income to
average net
assets*......... 6.08% 6.16%
Portfolio
turnover (f).... 123.10% 123.10%
</TABLE>
See notes to financial statements.
141
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.... $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $ 9.93
-------- -------- -------- -------- ------- ------ ------ --------
Investment Activities
Net investment income.. 0.52 0.45 0.45 0.55 0.60 0.53 0.53 0.62
Net realized and
unrealized gains
(losses) from
investments........... 0.04 0.03 0.02 0.03 (0.25) (0.24) (0.25) (0.24)
-------- -------- -------- -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.56 0.48 0.47 0.58 0.35 0.29 0.28 0.38
-------- -------- -------- -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.53) (0.44) (0.45) (0.56) (0.58) (0.51) (0.52) (0.60)
-------- -------- -------- -------- ------- ------ ------ --------
Total Distributions.... (0.53) (0.44) (0.45) (0.56) (0.58) (0.51) (0.52) (0.60)
-------- -------- -------- -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.73 $ 9.71 $ 9.54 $ 9.73 $ 9.70 $ 9.67 $ 9.52 $ 9.71
======== ======== ======== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.91% 5.09% 5.03% 6.11% 3.69% 2.93% 2.86% 3.95%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $ 18,552 $ 1,972 $ 194 $187,856 $22,954 $1,843 $ 80 $225,313
Ratio of expenses to
average net assets..... 1.23% 1.98% 1.99% 0.98% 1.21% 1.96% 1.96% 0.96%
Ratio of net investment
income to average net
assets................. 5.41% 4.67% 4.69% 5.66% 5.51% 4.78% 4.83% 5.76%
Ratio of expenses to
average net assets*.... 1.32% 2.07% 2.07% 1.07% 1.30% 2.05% 2.05% 1.05%
Ratio of net investment
income to average net
assets*................ 5.32% 4.58% 4.61% 5.57% 5.42% 4.69% 4.74% 5.67%
Portfolio turnover (f).. 1,516.78% 1,516.78% 1,516.78% 1,516.78% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
142
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND, CONTINUED
--------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------- -----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONAL
---------- ---------- -------------- ------------- ---------- -------------- --------------
<S> <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
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income......... 0.50 0.43 0.18 0.52 0.59 0.21 0.60
Net realized and
unrealized
gains (losses)
from
investments.... 0.31 0.30 0.33 0.31 (0.66) (0.54) (0.66)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.81 0.73 0.51 0.83 (0.07) (0.33) (0.06)
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.50) (0.44) (0.17) (0.52) (0.59) (0.21) (0.60)
Net realized
gains.......... -- -- -- -- -- -- --
In excess of net
realized gains. -- -- -- -- (0.25) -- (0.25)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.50) (0.44) (0.17) (0.52) (0.84) (0.21) (0.85)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.62
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 8.69% 7.84% 5.21%(e) 9.02% (0.90)% (3.31)% (0.80)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $27,521 $ 977 $ 9 $249,169 $36,106 $ 531 $281,232
Ratio of expenses
to average net
assets.......... 1.25% 2.06% 2.09%(b) 1.04% 1.00% 1.92%(b) 0.90%
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%
Ratio of expenses
to average net
assets*......... 1.41% 2.42% 2.36%(b) 1.16% 1.29% 2.32%(b) 1.04%
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%
Portfolio
turnover (f).... 549.93% 549.13% 549.13% 549.13% 546.06% 546.06% 546.06%
<CAPTION>
------------------------
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.42 $ 10.42
------- --------
Investment
Activities
Net investment
income......... 0.68 0.68
Net realized and
unrealized
gains (losses)
from
investments.... 0.21 0.22
------- --------
Total from
Investment
Activities..... 0.89 0.90
------- --------
Distributions
Net investment
income......... (0.73) (0.73)
Net realized
gains.......... (0.05) (0.06)
In excess of net
realized gains. -- --
------- --------
Total
Distributions.. (0.78) (0.79)
------- --------
NET ASSET VALUE,
END OF PERIOD... $ 10.53 $ 10.53
======= ========
Total Return
(excludes sales
and redemption
charges)........ 8.92% 8.94%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $37,055 $272,607
Ratio of expenses
to average net
assets.......... 0.90% 0.87%
Ratio of net
investment
income to
average net
assets.......... 6.51% 6.54%
Ratio of expenses
to average net
assets*......... 1.08% 1.01%
Ratio of net
investment
income to
average net
assets*......... 6.33% 6.40%
Portfolio
turnover (f).... 225.90% 225.90%
</TABLE>
See notes to financial statements.
143
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.. 0.70 0.63 0.64 0.72 0.73 0.66 0.66 0.75
Net realized and
unrealized (losses)
from investments...... (0.10) (0.09) (0.11) (0.10) (0.17) (0.18) (0.17) (0.17)
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities............ 0.60 0.54 0.53 0.62 0.56 0.48 0.49 0.58
------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net investment income.. (0.59) (0.52) (0.50) (0.61) (0.65) (0.59) (0.66) (0.67)
Tax return of capital.. (0.11) (0.10) (0.12) (0.11) (0.08) (0.07) -- (0.08)
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions.... (0.70) (0.62) (0.62) (0.72) (0.73) (0.66) (0.66) (0.75)
------- ------- ------ -------- ------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD.......... $ 9.15 $ 9.13 $ 9.10 $ 9.15 $ 9.25 $ 9.21 $ 9.19 $ 9.25
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 6.86% 6.06% 6.07% 6.91% 5.97% 5.22% 5.25% 6.34%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $58,589 $23,448 $ 69 $148,854 $52,250 $19,556 $ 70 $130,615
Ratio of expenses to
average net assets..... 1.02% 1.77% 1.77% 0.77% 1.01% 1.76% 1.76% 0.76%
Ratio of net investment
income to average net
assets................. 7.64% 6.89% 6.89% 7.90% 7.70% 6.92% 6.92% 7.94%
Ratio of expenses to
average net assets*.... 1.36% 2.11% 2.11% 1.11% 1.35% 2.10% 2.10% 1.10%
Ratio of net investment
income to average net
assets*................ 7.30% 6.55% 6.55% 7.56% 7.36% 6.58% 6.58% 7.60%
Portfolio turnover (g).. 499.53% 499.53% 499.53% 499.53% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Period from commencement of operations.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
144
<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(D) INSTITUTIONAL INVESTOR A INVESTOR B(C) 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%(f) 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.
145
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME
FUND, CONTINUED
---------------------------
NOVEMBER 12, 1992 TO
JUNE 30, 1993 (A)(E)
---------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............. $ 10.00 $ 10.00
------- -------
Investment Activities
Net investment income........................... 0.48 0.48
Net realized and unrealized gains from
investments.................................... 0.04 0.04
------- -------
Total from Investment Activities................ 0.52 0.52
------- -------
Distributions
Net investment income........................... (0.48) (0.48)
------- -------
Total Distributions............................. (0.48) (0.48)
------- -------
NET ASSET VALUE, END OF PERIOD................... $ 10.04 $ 10.04
======= =======
Total Return (excludes sales and redemption
charges)........................................ 5.35% 5.37%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)................ $32,633 $71,862
Ratio of expenses to average net assets.......... 0.75%(b) 0.70%(b)
Ratio of net investment income to average net
assets.......................................... 7.41%(b) 7.49%(b)
Ratio of expenses to average net assets*......... 1.23%(b) 1.09%(b)
Ratio of net investment income to average net
assets*......................................... 6.93%(b) 7.09%(b)
Portfolio turnover (g)........................... 135.06% 135.06%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) 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.
146
<PAGE>
- --------------------------------------------------------------------------------
[This page has been left blank intentionally.]
147
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.. 0.56 0.50 0.49 0.59 0.57 0.50 0.50 0.59
Net realized and
unrealized gains
(losses) from
investments........... 0.17 0.16 0.17 0.17 (0.16) (0.17) (0.17) (0.16)
------- ------ ------ -------- ------- ------- ------- --------
Total from Investment
Activities............ 0.73 0.66 0.66 0.76 0.41 0.33 0.33 0.43
------- ------ ------ -------- ------- ------- ------- --------
Distributions
Net investment income.. (0.56) (0.48) (0.48) (0.59) (0.57) (0.50) (0.50) (0.59)
------- ------ ------ -------- ------- ------- ------- --------
Total Distributions.... (0.56) (0.48) (0.48) (0.59) (0.57) (0.50) (0.50) (0.59)
------- ------ ------ -------- ------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.68 $ 9.69 $ 9.65 $ 9.73 $ 9.51 $ 9.51 $ 9.47 $ 9.56
======= ====== ====== ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 7.92% 7.09% 7.15% 8.20% 4.27% 3.46% 3.50% 4.49%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $19,760 $5,967 $ 508 $492,102 $20,175 $ 4,426 $ 210 $549,336
Ratio of expenses to
average net assets..... 1.19% 1.94% 1.94% 0.94% 1.19% 1.94% 1.91% 0.94%
Ratio of net investment
income to average net
assets................. 5.88% 5.15% 5.18% 6.13% 5.71% 4.97% 5.00% 5.96%
Ratio of expenses to
average net assets*.... 1.28% 2.03% 2.03% 1.03% 1.28% 2.03% 2.03% 1.03%
Ratio of net investment
income to average net
assets*................ 5.79% 5.06% 5.09% 6.04% 5.62% 4.88% 4.88% 5.87%
Portfolio turnover (f).. 827.00% 827.00% 827.00% 827.00% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
148
<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 (D) INSTITUTIONAL INVESTOR A INVESTOR B (C) 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).... 1,010.64% 1,010.64% 1,010.64% 1,010.64% 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.
149
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND
-----------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------
1997 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.. 0.44 0.36 0.46 0.41 0.33 0.43
Net realized and
unrealized gains from
investments........... 0.12 0.13 0.14 0.03 0.03 0.04
------ ------ -------- ------ ------ --------
Total from Investment
Activities............. 0.56 0.49 0.60 0.44 0.36 0.47
------ ------ -------- ------ ------ --------
Distributions
Net investment income.. (0.41) (0.32) (0.44) (0.40) (0.33) (0.43)
Net realized gains..... (0.05) (0.05) (0.05) -- -- --
------ ------ -------- ------ ------ --------
Total Distributions.... (0.46) (0.37) (0.49) (0.40) (0.33) (0.43)
------ ------ -------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.......... $10.53 $10.51 $ 10.54 $10.43 $10.39 $ 10.43
====== ====== ======== ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.47% 4.81% 5.89% 4.29% 3.48% 4.55%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $9,601 $ 993 $134,579 $7,835 $ 735 $132,527
Ratio of expenses to
average net assets..... 1.06% 1.81% 0.81% 1.05% 1.80% 0.80%
Ratio of net investment
income to average net
assets................. 4.19% 3.43% 4.41% 3.85% 3.11% 4.10%
Ratio of expenses to
average net assets*.... 1.35% 2.10% 1.10% 1.34% 2.09% 1.09%
Ratio of net investment
income to average net
assets*................ 3.90% 3.14% 4.12% 3.56% 2.82% 3.81%
Portfolio turnover (g).. 48.83% 48.83% 48.83% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) There was only one share outstanding for the Investor C shares at June 30,
1995.
(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.
150
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
See notes to financial statements.
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
----------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------------------------------------
1995 1994
----------------------------------------------------- ----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D)(F) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONALL
---------- ---------- ----------------- ------------- ---------- -------------- --------------
<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
............... (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%(e) 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%
</TABLE>
<TABLE>
<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
............... -- --
------ --------
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.
151
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND
-----------------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------------
1997 1996
----------------------------------- -----------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.76 $10.76 $ 10.77 $ 10.75 $10.75 $ 10.76
------- ------ -------- ------- ------ --------
Investment Activities
Net investment income.. 0.49 0.41 0.51 0.47 0.40 0.50
Net realized and
unrealized gains from
investments........... 0.14 0.13 0.14 0.04 0.04 0.04
------- ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.63 0.54 0.65 0.51 0.44 0.54
------- ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.46) (0.36) (0.49) (0.47) (0.40) (0.50)
Net realized gains..... (0.04) (0.04) (0.04) (0.03) (0.03) (0.03)
------- ------ -------- ------- ------ --------
Total Distributions.... (0.50) (0.40) (0.53) (0.50) (0.43) (0.53)
------- ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD.......... $ 10.89 $10.90 $ 10.89 $ 10.76 $10.76 $ 10.77
======= ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.89% 5.05% 6.11% 4.87% 4.13% 5.12%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $38,302 $3,503 $194,950 $36,681 $3,565 $185,191
Ratio of expenses to
average net assets..... 1.01% 1.76% 0.76% 1.02% 1.77% 0.77%
Ratio of net investment
income to average net
assets................. 4.48% 3.73% 4.73% 4.32% 3.57% 4.57%
Ratio of expenses to
average net assets*.... 1.30% 2.05% 1.05% 1.31% 2.06% 1.06%
Ratio of net investment
income to average net
assets*................ 4.19% 3.44% 4.44% 4.03% 3.28% 4.28%
Portfolio turnover (g).. 28.48% 28.48% 28.48% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) There was only one share outstanding for the Investor C shares at June 30,
1995.
(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.
152
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND, CONTINUED
----------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------------------------------------
1995 1994
----------------------------------------------------- ----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D)(F) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONAL
---------- ---------- ----------------- ------------- ---------- -------------- --------------
<S> <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
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.48 0.40 (0.02) 0.50 0.47 0.16 0.48
Net realized and
unrealized
gains (losses)
from
investments.... 0.23 0.24 0.62 0.25 (0.36) (0.57) (0.36)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities...... 0.71 0.64 0.60 0.75 0.11 (0.41) 0.12
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income ........ (0.48) (0.40) -- (0.50) (0.45) (0.16) (0.46)
Net realized
gains.......... (0.01) (0.01) (0.17) (0.02) (0.01) -- (0.01)
In excess of net
realized gains
............... -- -- -- -- (0.09) -- (0.09)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.49) (0.41) (0.17) (0.52) (0.55) (0.16) (0.56)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 10.75 $10.75 $10.54 $ 10.76 $ 10.53 $10.52 $ 10.53
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 6.99% 6.28% 3.39%(e) 7.33% 0.92% (3.69)% 1.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $37,874 $2,270 -- $176,068 $42,204 $1,302 $181,051
Ratio of expenses
to average net
assets.......... 1.00% 1.78% 0.48%(b) 0.78% 0.85% 1.77%(b) 0.75%
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%
Ratio of expenses
to average net
assets*......... 1.32% 2.32% 0.48%(b) 1.07% 1.29% 2.32%(b) 1.04%
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%
Portfolio
turnover (g).... 26.06% 26.06% 26.06% 26.06% 6.69% 6.69% 6.69%
<CAPTION>
------------------------
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.58 $ 10.58
------- --------
Investment
Activities
Net investment
income (loss).. 0.50 0.50
Net realized and
unrealized
gains (losses)
from
investments.... 0.47 0.47
------- --------
Total from
Investment
Activities...... 0.97 0.97
------- --------
Distributions
Net investment
income ........ (0.54) (0.54)
Net realized
gains.......... (0.04) (0.04)
In excess of net
realized gains
............... -- --
------- --------
Total
Distributions.. (0.58) (0.58)
------- --------
NET ASSET VALUE,
END OF PERIOD... $ 10.97 $ 10.97
======= ========
Total Return
(excludes sales
and redemption
charges)........ 9.40% 9.42%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $32,778 $165,414
Ratio of expenses
to average net
assets.......... 0.78% 0.76%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.67% 4.70%
Ratio of expenses
to average net
assets*......... 1.12% 1.05%
Ratio of net
investment
income (loss) to
average net
assets*......... 4.33% 4.41%
Portfolio
turnover (g).... 35.81% 35.81%
</TABLE>
See notes to financial statements.
153
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
CONSERVATIVE
ALLOCATION
FUND
-----------------
DECEMBER 30, 1996
TO
JUNE 30, 1997 (A)
-----------------
INSTITUTIONAL
-----------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 10.00
-------
Investment Activities
Net investment income... 0.14
Net realized and
unrealized gains from
investments............ 0.34
-------
Total from Investment
Activities............. 0.48
-------
Distributions
Net investment income... (0.12)
-------
Total Distributions..... (0.12)
-------
NET ASSET VALUE,
END OF PERIOD........... $ 10.36
=======
Total Return (excludes
sales and redemption
charges)................ 4.87%
RATIOS/SUPPLEMENTARY DA-
TA:
Net Assets at end of pe-
riod (000).............. $10,287
Ratio of expenses to av-
erage net assets........ 1.64%(b)
Ratio of net investment
income (loss) to average
net assets.............. 3.12%(b)
Ratio of expenses to av-
erage net assets*....... 1.94%(b)
Ratio of net investment
income (loss) to average
net assets*............. 2.82%(b)
Portfolio turnover....... 62.11%
Average commission rate
paid (c)................ $0.0795
</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) 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.
154
<PAGE>
- --------------------------------------------------------------------------------
[This page has been left blank intentionally.]
155
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.. 0.32 0.21 0.21 0.35 0.32 0.23 0.24 0.36
Net realized and
unrealized gains from
investments and
foreign currencies.... 1.12 1.13 1.14 1.12 1.74 1.74 1.71 1.74
------- ------- ------- -------- ------- ------- ------- --------
Total from Investment
Activities............. 1.44 1.34 1.35 1.47 2.06 1.97 1.95 2.10
------- ------- ------- -------- ------- ------- ------- --------
Distributions
Net investment income.. (0.33) (0.22) (0.23) (0.37) (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.... (1.81) (1.70) (1.71) (1.85) (0.88) (0.79) (0.79) (0.92)
------- ------- ------- -------- ------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 13.00 $ 13.00 $ 12.92 $ 12.99 $ 13.37 $ 13.36 $ 13.28 $ 13.37
======= ======= ======= ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 11.61% 10.82% 10.90% 11.86% 17.51% 16.71% 16.61% 17.81%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $18,826 $ 6,299 $ 795 $245,347 $17,097 $ 4,278 $ 362 $113,493
Ratio of expenses to
average net assets..... 1.36% 2.11% 2.11% 1.10% 1.41% 2.16% 2.16% 1.16%
Ratio of net investment
income to average net
assets................. 2.47% 1.73% 1.75% 2.77% 2.37% 1.64% 1.65% 2.62%
Ratio of expenses to
average net assets*.... 1.61% 2.36% 2.36% 1.36% 1.66% 2.45% 2.41% 1.41%
Ratio of net investment
income to average net
assets*................ 2.22% 1.48% 1.50% 2.51% 2.12% 1.35% 1.40% 2.37%
Portfolio turnover (f).. 425.05% 425.05% 425.05% 425.05% 437.90% 437.90% 437.90% 437.90%
Average commission rate
paid (g)............... $0.0518 $0.0518 $0.0518 $ 0.0518 $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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
156
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND, CONTINUED
--------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------- -----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONAL
---------- ---------- -------------- ------------- ---------- -------------- --------------
<S> <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
------- ------ ------ ------- ------- ------ -------
Investment
Activities
Net investment
income......... 0.28 0.20 0.09 0.31 0.26 0.10 0.27
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.69 1.67 1.16 1.68 (0.43) (1.05) (0.41)
------- ------ ------ ------- ------- ------ -------
Total from
Investment
Activities...... 1.97 1.87 1.25 1.99 (0.17) (0.95) (0.14)
------- ------ ------ ------- ------- ------ -------
Distributions
Net investment
income......... (0.29) (0.20) (0.10) (0.31) (0.25) (0.09) (0.27)
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)
------- ------ ------ ------- ------- ------ -------
NET ASSET VALUE,
END OF PERIOD... $ 12.19 $12.18 $12.12 $ 12.19 $ 10.67 $10.67 $ 10.67
======= ====== ====== ======= ======= ====== =======
Total Return
(excludes sales
and redemption
charges)........ 18.96% 17.96% 17.53%(e) 19.22% (1.63)% (8.16)% (1.44)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $12,849 $1,291 $ 114 $89,294 $11,901 $ 744 $71,427
Ratio of expenses
to average net
assets.......... 1.47% 2.25% 2.16%(b) 1.25% 1.18% 2.05%(b) 1.09%
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%
Ratio of expenses
to average net
assets*......... 1.78% 2.77% 2.68%(b) 1.52% 1.63% 2.61%(b) 1.39%
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%
Portfolio
turnover (f).... 250.66% 250.66% 250.66% 250.66% 192.39% 192.39% 192.39%
<CAPTION>
------------------------
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.68 $ 9.68
------ -------
Investment
Activities
Net investment
income......... 0.28 0.28
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.42 1.41
------ -------
Total from
Investment
Activities...... 1.70 1.69
------ -------
Distributions
Net investment
income......... (0.29) (0.29)
Net realized
gains.......... -- --
In excess of net
realized gains. -- --
------ -------
Total
Distributions.. (0.29) (0.29)
------ -------
NET ASSET VALUE,
END OF PERIOD... $11.09 $ 11.08
====== =======
Total Return
(excludes sales
and redemption
charges)........ 17.74% 17.66%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $6,115 $42,318
Ratio of expenses
to average net
assets.......... 1.18% 1.15%
Ratio of net
investment
income to
average net
assets.......... 2.66% 2.70%
Ratio of expenses
to average net
assets*......... 1.53% 1.46%
Ratio of net
investment
income to
average net
assets*......... 2.31% 2.40%
Portfolio
turnover (f).... 177.99% 177.99%
</TABLE>
See notes to financial statements.
157
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
AGGRESSIVE
ALLOCATION
FUND
-----------------
DECEMBER 30, 1996
TO
JUNE 30, 1997 (A)
-----------------
INSTITUTIONAL
-----------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD......................................... $ 10.00
-------
Investment Activities
Net investment income ...................................... 0.07
Net realized and unrealized gains from investments and for-
eign currencies............................................ 0.56
-------
Total from Investment Activities............................ 0.63
-------
Distributions
Net investment income....................................... (0.06)
-------
Total Distributions......................................... (0.06)
-------
NET ASSET VALUE,
END OF PERIOD............................................... $ 10.57
=======
Total Return (excludes sales and redemption charges)......... 6.38%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............................ $39,043
Ratio of expenses to average net assets...................... 1.32%(b)
Ratio of net investment income (loss) to average net assets.. 1.61%(b)
Ratio of expenses to average net assets*..................... 1.47%(b)
Ratio of net investment income (loss) to average net assets*. 1.46%(b)
Portfolio turnover........................................... 44.68%
Average commission rate paid (c)............................. $0.0280
</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) 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.
158
<PAGE>
- --------------------------------------------------------------------------------
[This page has been left blank intentionally.]
159
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1997 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.. 0.29 0.16 0.15 0.34 0.30 0.19 0.19 0.34
Net realized and
unrealized gains from
investments........... 3.57 3.57 3.58 3.51 3.27 3.25 3.27 3.26
------- ------- ------- -------- ------- ------- ------- --------
Total from Investment
Activities............ 3.86 3.73 3.73 3.85 3.57 3.44 3.46 3.60
------- ------- ------- -------- ------- ------- ------- --------
Distributions
Net investment income.. (0.28) (0.17) (0.17) (0.33) (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.... (1.97) (1.86) (1.86) (2.02) (0.75) (0.64) (0.64) (0.79)
------- ------- ------- -------- ------- ------- ------- --------
NET ASSET VALUE,
END OF PERIOD.......... $ 19.20 $ 19.14 $ 19.23 $ 19.13 $ 17.31 $ 17.27 $ 17.36 $ 17.30
======= ======= ======= ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 23.81% 22.96% 22.86% 23.80% 25.05% 24.11% 24.17% 25.30%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $99,423 $21,038 $ 778 $315,878 $82,396 $12,590 $ 164 $337,318
Ratio of expenses to
average net assets..... 1.58% 2.33% 2.33% 1.33% 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
income to average net
assets................. 1.62% 0.88% 0.88% 1.89% 1.86% 1.11% 1.11% 2.11%
Ratio of expenses to
average net assets*.... 1.58% 2.33% 2.33% 1.33% 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
income to average net
assets*................ 1.62% 0.88% 0.88% 1.89% 1.86% 1.11% 1.11% 2.11%
Portfolio turnover (f).. 20.14% 20.14% 20.14% 20.14% 40.75% 40.75% 40.75% 40.75%
Average commission rate
paid (g)............... $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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(g) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
160
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND, CONTINUED
-------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------- ----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (D) INSTITUTIONAL INVESTOR A INVESTOR B (C) INSTITUTIONAL
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <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
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income......... 0.36 0.26 0.11 0.39 0.37 0.13 0.39
Net realized and
unrealized
gains (losses)
from
investments.... 1.00 0.99 1.17 1.00 (0.56) (1.43) (0.56)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 1.36 1.25 1.28 1.39 (0.19) (1.30) (0.17)
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.36) (0.26) (0.11) (0.39) (0.37) (0.13) (0.39)
In excess of net
investment
income......... (0.01) (0.01) (0.01) (0.01) -- -- --
Net realized
gains.......... -- -- -- -- (0.24) -- (0.24)
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)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 14.49 $14.47 $14.54 $ 14.49 $ 13.50 $13.49 $ 13.50
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 10.32% 9.41% 9.71%(e) 10.55% (1.63)% (8.76)% (1.53)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $71,063 $7,131 $ 25 $346,164 $76,108 $3,836 $355,538
Ratio of expenses
to average net
assets.......... 1.54% 2.32% 2.30%(b) 1.32% 1.40% 2.33%(b) 1.30%
Ratio of net
investment
income to
average net
assets.......... 2.65% 1.86% 1.88%(b) 2.86% 2.56% 1.87%(b) 2.64%
Ratio of expenses
to average net
assets*......... 1.57% 2.57% 2.55%(b) 1.32% 1.55% 2.59%(b) 1.30%
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%
Portfolio
turnover (f).... 77.70% 77.70% 77.70% 77.70% 69.35% 69.35% 69.35%
<CAPTION>
EQUITY INCOME FUND, CONTINUED
--------------------------------
YEAR ENDED JUNE 30,
--------------------------------
1993 (A)
--------------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 13.14 $ 13.14
------- --------
Investment
Activities
Net investment
income......... 0.45 0.45
Net realized and
unrealized
gains (losses)
from
investments.... 1.69 1.69
------- --------
Total from
Investment
Activities..... 2.14 2.14
------- --------
Distributions
Net investment
income......... (0.45) (0.45)
In excess of net
investment
income......... -- --
Net realized
gains.......... (0.14) (0.14)
In excess of net
realized gains. -- --
------- --------
Total
Distributions.. (0.59) (0.59)
------- --------
NET ASSET VALUE,
END OF PERIOD... $ 14.69 $ 14.69
======= ========
Total Return
(excludes sales
and redemption
charges)........ 16.71% 16.73%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $50,000 $384,240
Ratio of expenses
to average net
assets.......... 1.29% 1.26%
Ratio of net
investment
income to
average net
assets.......... 3.24% 3.28%
Ratio of expenses
to average net
assets*......... 1.36% 1.28%
Ratio of net
investment
income to
average net
assets*......... 3.17% 3.25%
Portfolio
turnover (f).... 67.26% 67.26%
</TABLE>
See notes to financial statements.
161
<PAGE>
Parkstone offers investors:
. Expert money management from First of America Investment Corporation
. Low initial investment
. An automatic investment program
. The opportunity to change investments when personal needs change
. 24 hour access to information about investments through
FUNDATA at 1-800-451-8377
The Parkstone Mutual Funds
Growth Funds
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
Growth and Income Funds
Parkstone Conservative Allocation Fund
Parkstone Balanced Allocation Fund
Parkstone Aggressive Allocation Fund
Parkstone Equity Income Fund
Income Funds
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
Tax-Advantaged Bond Funds
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
Money Market Funds
Parkstone Prime Obligations Fund [LOGO OF PARKSTONE
Parkstone U.S. Government Obligations Fund MUTUAL FUNDS APPEARS HERE]
Parkstone Tax-Free Fund
Parkstone Treasury Fund
----------------
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 2443
----------------
