<PAGE>
[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
[ARTWORK APPEARS HERE]
December 31, 1997
SEMI-ANNUAL REPORT
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Table of Contents
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Portfolio Performance Discussion............................................ 6
Statements of Assets and Liabilities........................................ 34
Statements of Operations.................................................... 39
Statements of Changes in Net Assets......................................... 44
Schedules of Portfolio Investments.......................................... 49
Notes to Financial Statements............................................... 110
Financial Highlights........................................................ 126
</TABLE>
1
<PAGE>
Message From Your Chairman
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Dear Shareholders:
While the markets experienced a few rocky moments during the six months ended
December 31, 1997, the period overall was a good one for investors in general
and for investors in the Parkstone Mutual Funds more specifically. Though
stocks took a dive in August, and then a breathtaking plunge in October, they
snapped back smartly from each within a matter of weeks. The bond markets, too,
gained ground as interest rates declined throughout the period--and as the
stock market grew more volatile, investors sought safety. Despite this
tumultuous environment, we are pleased to report that most of the Parkstone
Funds held their ground.
Moreover, investors' enthusiasm for stocks and bonds remained high. While not
at the breathtaking levels seen in 1996, money continued to stream into mutual
funds over the course of the period--and we're pleased to report that many of
these investors placed their confidence in the Parkstone Funds.
A TIME FOR CAUTION . . . AND OPTIMISM
Very simply, the past several years have been very good ones for stock
investors. But, much as we've said and expected for quite some time, the
markets have grown more volatile in recent weeks. As it has historically, the
law of gravity has begun to prevail. This, coupled with the crisis in Asia, has
created a very unpredictable environment. As a result, stocks have taken some
tumbles of late. In addition, they may take a few more in the months ahead,
before the situation sorts itself out and we see where different economies
around the world are headed.
Nevertheless, there is one thing we can be certain of: those who attempt to
second-guess the direction of the markets have seldom been as successful as
those who take a systematic, disciplined and long-term approach to investing.
That's why a long-term perspective is now more important then ever, yet more
difficult to maintain as the media headlines events in the financial markets
every night.
Nonetheless, now is a time to hold, not fold. In short, whatever happens in
Asia, we believe the U.S. financial markets are the strongest in the world--and
the best positioned to weather a storm. Historically, investors with the
fortitude to withstand the swings in price that such storms often bring have
been rewarded. And this may be the case this time as the fundamentals of our
economy are solid, and long-term prospects for U.S. corporations are bright.
2
<PAGE>
Message From Your Chairman, continued
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The Parkstone Group of Funds December 31, 1997
IN CLOSING
In the pages that follow, you will find a detailed discussion of the
performance of each of the Parkstone Mutual Funds during the six months ended
December 31, 1997. You will also find a letter from our Investment Adviser,
which includes an economic outlook for the coming months. We urge you to read
this material closely.
Finally, we thank you for your continued confidence in us. We look forward to
providing you with superior investment management and serving your needs now
and in the years ahead. As always, if you have any questions or require any
assistance, please don't hesitate to call us at 1-800-355-4555.
Sincerely,
/s/ John B. Rapp
John B. Rapp
Chairman
The Parkstone Mutual Funds
THE PARKSTONE MUTUAL FUNDS(R) ARE NOT FDIC INSURED AND ARE NOT OBLIGATIONS OF,
ENDORSED OR GUARANTEED BY, ANY BANK OR ITS AFFILIATES. INVESTMENT PRODUCTS
INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
---------------------------------------------------------------
NOTICE TO SHAREHOLDERS
PLEASE BE ADVISED OF THE FOLLOWING FACTS ABOUT MUTUAL FUNDS:
. YOUR PRINCIPAL IS AT RISK.
. NOT AN OBLIGATION OF ANY BANK.
. NO FDIC COVERAGE.
---------------------------------------------------------------
3
<PAGE>
Message From Your Investment Adviser
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Dear Shareholders:
Historically, there is nothing the financial markets have hated quite as much
as uncertainty--and as we begin the New Year, there is certainly plenty to go
around. Worries about the impact of the turmoil in Asia, and about the
direction of U.S. interest rates and inflation, dominate the headlines. New
rumors about corporate profits surface hourly, and experts speculate as to how
long the investor psychology that fueled the spectacular growth of the mutual
fund industry--and, in turn, the stock market--can last.
The truth is, no matter how long each of these subjects is dissected or
debated, no one can foresee the future. It is clear, however, that in three of
the five world economic regions, economic growth is likely to remain at last
year's level or to expand more slowly than in 1997. Demand from these regions,
in particular Asia, have underpinned U.S. export growth over the past several
years. Therefore, our economy--already slowing--may slow further, but just how
much or for how long is impossible to predict precisely.
THE ASIAN FLU
Much of the uncertainty now, of course, is due to the situation in Asia. After
almost a decade of explosive growth, there is now substantially more production
capacity than there is worldwide demand for many products produced in Asia. Due
to the shaky state of financial institutions in the region, local consumers
find it difficult, if not impossible, to get credit, as do local businesses
that need credit to finance their operations. Galloping to the rescue, the
International Monetary Fund has presented a series of plans designed to
stabilize the stricken economies. Within the region, however, the preferred
solution seems to be to increase exports to the United States--where benevolent
American consumers will save Asia with their purchases.
However, U.S. consumers are unlikely to desire anything near the quantity of
goods likely to be forthcoming. Moreover, because their Asian trading partners
have less need for industrial inputs and their foreign consumers are no longer
in the position to purchase their products, U.S. corporations are likely to
find their own exports slowing, and, in some cases, even declining. Corporate
profits, of course, will be impacted--but keep in mind that over 50% of the
U.S. economy is service oriented. Many of the services provided by individuals
are unaffected by overseas pricing.
Nonetheless, events in Asia will have an impact this year and perhaps for the
next several years. This year, we believe our economy will grow at a rate of
2.5%, with corporate profits increasing about 6% or so. Both numbers are
smaller than those we have seen in the past several years--but we believe they
will still be increasing.
WHAT ABOUT THE MARKETS?
In recent weeks, U.S. interest rates have declined more than most experts in
the marketplace anticipated--and many pundits are projecting long-term rates
may go as low as 5%. While this has sparked more enthusiasm for bonds than we
have seen in several years, rates significantly below 5.5% are unlikely to be
sustained over the course of the year. At this point, however, the interest
rate decline has been critical to the stock market, where earnings estimates
are being reduced. Why? Because the interest rate declines help maintain the
current price/earnings ratio in the stock market, or increase it slightly,
which offsets any earnings decline.
This does not make for a buoyant stock market, but on the other hand, it
forestalls another serious correction. Moreover, it could provide a foundation
for further gains if there is positive economic news--particularly in the first
half of the year. Much, however, will depend on market psychology, which was
extremely favorable until the Asian mania reached its current level. Sentiment
now appears to be moving to a more neutral position--and could become negative,
depending on the severity of the effects the Asian Flu has on the U.S. economy.
4
<PAGE>
Message From Your Investment Adviser, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
IN ADDITION, THERE ARE A FEW WILD CARDS
Finally, based on the events of the past year, the Fed is now likely to
consider easing rather than increasing interest rates, which would help if the
environment grows less favorable. Also, we cannot lose sight of the fact that
1998 is a year of congressional elections. Typically, in an off-year election,
the opposition--in this case, the Republicans--will pick up additional seats in
Congress. We expect these elections to have little impact, but months of heated
rhetoric about spending lie ahead of us. Moreover, in politics, just like in
the financial markets, things can change in the wink of an eye.
Sincerely,
/s/ Richard A. Wolf
Richard A. Wolf, CFA
President and Chief Investment Officer
First of America Investment Corporation
5
<PAGE>
Portfolio Performance Discussion
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
SMALL CAPITALIZATION FUND+
Ironically, the six months ended December 31, 1997, were the best of times and
the worst of times for growth-oriented small-cap companies and their investors.
A strong economy, benign inflation and declining interest rates created an
environment where many saw their earnings and revenues soar. Yet, investors
concerned with events overseas and the direction of interest rates continued to
overlook and undervalue small-capitalization companies in favor of large-caps.
Consequently, stock prices in the sector remained stable or even declined.
Nevertheless, some of our holdings made progress that was simply too
astonishing to ignore--and therefore, their stock prices did rise dramatically.
Pacific Gateway (2.0% of the portfolio's assets), an international telephone
company, climbed 90% over the six months. Despite bright spots like this,
however, the period overall was a discouraging one for growth-oriented small-
cap investors. For the six months ended December 31, 1997, the Fund produced a
total return of -2.17% (Investor A Shares).*
THE SPOTLIGHT WILL SHIFT
Despite current market sentiment, we remain very optimistic about the prospects
of growth-oriented small-cap stocks in general, and for our holdings in
particular. Out-of-favor now for more than two years, many of these companies
are growing at a rate three times faster than the market overall. Regarding our
holdings specifically, we anticipate that, on average, the companies held have
the potential to show a 40% gain in earnings in 1998 over 1997. Inevitably,
market sentiment could change--and when it does, we believe the Fund is very
well positioned to participate in the sector's comeback.
As of December 31, 1997, the top five holdings in the Fund's portfolio were
Dura Pharmaceuticals, Inc. (3.9%), Sanmina Corp. (3.6%), Rexall Sundown, Inc.
(2.8%), Veritas Software Corp. (2.6%) and Visio Corp. (2.6%).**
- -------
+ Small-cap funds typically carry additional risks since smaller companies
generally have a higher risk of failure. Historically, stocks of smaller
companies have experienced a greater degree of market volatility than stocks on
average.
* The total return, with the maximum 4.50% sales charge, was - 6.58% for the
period.
** The Portfolio's composition is subject to change.
6
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* -10.52% 14.59% 17.60%
- ------------------------------------------------
Institutional -5.97% 15.91% 18.33%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
Date Investor A* Institutional Russell 2000
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
12/97 44,249 46,854 34,761
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** -11.24% 14.55%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor B** Russell 2000
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
12/97 17,006 17,433
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** -6.84% 15.22% 17.95%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor C*** Russell 2000
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
12/97 45,483 34,761
The Fund's performance is being compared to the Russell 2000 Stock 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 indicative 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 December 31, 1997
MID CAPITALIZATION FUND
Turmoil in Asia and declining interest rates created an atmosphere of
uncertainty in the equity markets during the six months ended December 31,
1997. Given the volatile environment, investors sought liquidity, and,
therefore, preferred the largest and best-known names. The vast majority of
mid-cap and small-cap stocks--no matter how strong their fundamentals and lack
of international exposure--were simply left standing on the sidelines. In
addition, what little interest there was in the sectors favored value stocks
over growth.
As the year ended, however, the quality of some of the Fund's holdings
attracted attention. In the fourth quarter alone, Chancellor Media (2.40% of
the portfolio's assets) rose 42%, and Paychex (2.66%) gained 29%. Despite this,
performance was somewhat disappointing, due to the lackluster environment for
mid-cap and small-cap growth stocks. For the six months ended December 31,
1997, the Fund posted a total return of 9.04% (Investor A Shares).*
OVERLOOKED AND UNDERVALUED
Clearly, events have trended in favor of larger capitalization stocks over the
past year. First, as the stock market continued to rocket upwards, investors
sought safety. Then, as events in Asia unfolded, liquidity concerns dominated.
Therefore, despite the fact that many smaller and mid-capitalization companies
have little or no international exposure, they have been overlooked for more
than a year. In that time, many have experienced astonishing growth--and yet
their stock prices have remained stable or fallen.
Consequently, many truly outstanding opportunities abound--particularly in
healthcare, consumer stocks and selected areas of technology. Long term, their
growth prospects are very, very strong. At some point, the sheer strength of
these companies' fundamentals will draw investor interest again. Therefore, we
are making every effort to capitalize on the bargains available--and we are
very optimistic about the Fund's long-term prospects.
As of December 31, 1997, the top five holdings in the Fund's portfolio were
Service Corp. International (3.3%), Peoplesoft (3.2%), Cardinal Health (2.7%),
Health Management Associates (2.6%) and Paychex, Inc. (2.6%).**
- -------
* The total return, with the maximum 4.50% sales charge, was 4.14% for the
period.
** The portfolio's composition is subject to change.
8
<PAGE>
Portfolio Performance Discussion, continued
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 6.60% 11.81% 14.15%
- ------------------------------------------------
Institutional 11.70% 12.92% 14.76%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
MID CAPITALIZATION FUND
Value of $10,000 Investment
Date Investor A* Institutional S&P 400
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
12/97 33,678 35,375 49,992
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 6.39% 12.27%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor B** S&P 400
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
12/97 15,723 19,453
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** 11.07% 12.30% 14.42%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor C*** S&P 400
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
12/97 34,408 49,992
The Fund's performance is being compared to the Standard & Poor's Mid-Cap 400
Index to reflect the Fund's focus on the mid-cap sector of the U.S. stock
market. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Mid Capitalization Fund
reflects the deduction of fees for these value-added services. Past performance
is not indicative 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 December 31, 1997
LARGE CAPITALIZATION FUND
Large-capitalization stocks benefited from market sentiment in the six months
ended December 31, 1997. As interest rates fell and troubles increased in Asia,
investors sought quality and liquidity. In general, the biggest and best-known
names were popular, but more specifically, large-cap utility companies and
banks were the belles of the ball. Given the fact that these companies do not
offer investors much growth potential, our portfolio was underweighted in these
particular sectors.
Nevertheless, the Fund performed very well, as holdings in other sectors made
substantial contributions to performance. Among the strongest performers were
Pfizer (2.76% of the portfolio's assets), which gained 30% over the course of
the six months, and PeopleSoft (1.60%), which rose 30% in the fourth quarter
alone. Walgreen's (1.70%) and Automatic Data Processing (1.21%) also climbed
over 20% in the fourth quarter. Having no exposure in Asia, the Fund performed
well and posted a total return of 8.68% (Investor A Shares)* for the six months
ended December 31, 1997.
A VOLATILE ENVIRONMENT
Clearly, concerns over the impact of events in Asia on our economy and on U.S.
corporations is not likely to be alleviated any time soon. Consequently, we
expect that the market will remain very sensitive to conditions there--and any
earnings disappointments domestically--for some time to come. In such an
environment, liquidity and quality may continue to be paramount to investors.
Nevertheless, the U.S. economy remains healthy, with little evidence of
inflation. Interest rates are declining. In short, the foundation for future
earnings growth is in place. Therefore, we are optimistic about the long-term
prospects for the stock markets in general, and for our holdings in particular.
We would continue to see any major correction as a buying opportunity.
As of December 31, 1997, the top five holdings in the Fund's portfolio were
Cendant Corp. (2.9%), Pfizer, Inc. (2.8%), Cisco Systems (2.75), Eli Lilly &
Co. (2.6%) and Procter & Gamble Co. (2.5%).**
- -------
* The total return, with the maximum 4.50% sales charge, was 3.80% for the
period.
** The portfolio's composition is subject to change.
10
<PAGE>
Portfolio Performance Discussion, continued
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/1/96)
- ------------------------------------------------
Investor A* 23.01% 22.02%
- ------------------------------------------------
Investor B** 22.77% 22.01%
- ------------------------------------------------
Investor C*** 27.78% 23.74%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
LARGE CAPITALIZATION FUND
Value of $10,000 Investment
Date Investor A* Investor B** Investor C*** S&P 500
2/96 9,547 10,000 10,000 10,000
6/96 10,405 10,477 10,714 10,653
6/97 13,477 14,349 13,930 13,490
12/97 14,647 14,645 15,045 14,917
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(12/28/95)
- ------------------------------------------------
Institutional 29.08% 26.05%
- ------------------------------------------------
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Institutional S&P 500
12/95 10,000 10,000
6/96 11,286 11,032
6/97 14,650 15,202
12/97 15,939 16,810
The Fund's performance is being compared to the Standard & Poor's 500 Stock
Index, which represents the performance of the U.S. stock market as a whole.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Large Capitalization Fund reflects the deduction
of fees for these value-added services. Past performance is not indicative 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 December 31, 1997
INTERNATIONAL DISCOVERY FUND+
Asian markets collapsed in 1997, as what began as a ripple in February, when a
small property company in Thailand missed a payment on its foreign debt,
developed into a tidal wave of bankruptcies and currency devaluations
throughout the region by August. By late in the fourth quarter, investors in
Europe and North America were beginning to realize the severity of the economic
devastation in Asia, and the potential negative impact it might have on
corporate earnings in their home markets. Old-fashioned panic was in evidence
several days over the last three months, in London and New York as well as in
Tokyo and Hong Kong, as global stock markets suffered dramatic day-to-day
volatility.
Currencies also had a major impact on investment performance over the course of
the period, as the continued strength of the U.S. dollar significantly reduced
investment returns for U.S. based investors. Consequently, the combination of
declining Asian markets and weak currencies worked to produce a somewhat
disappointing return of -8.14% (Investor A Shares).*
LOOKING BEYOND ASIA
Going forward, 1998 promises to be a year of increased uncertainty, as the
Asian financial collapse will have a detrimental influence on foreign trade,
economic growth and corporate profits around the globe. The depth and longevity
of the global slowdown is dependent on the ability of the Asian countries to
put their houses in order and embark on sustainable growth trends. We are not
willing to believe the bottom in the smaller Asian markets has been reached
until we see evidence of currency stabilization and movements toward economic
restructuring in each of these countries. At the present time, such
developments are lacking.
Europe and Latin America, on the other hand, continue to offer strong
investment opportunities. Even though reduced exports to Asia will have a minor
negative impact on GDP strong consumer demand and low interest rates continue
to produce a favorable investment environment for continental Europe. The
developing economies of Latin America, although not immune from the troubles
occurring across the Pacific, have already experienced most of the problems
afflicting the Asian Tigers and appear to be better positioned to maintain
their underlying growth paths.
UNEARTHING OPPORTUNITY
The year 1998 begins with many more concerns about the global investment
outlook than prior years, but we believe this environment of uncertainty
provides the opportunity for high-quality companies to display superior
operating performance in the months ahead. Those are the types of companies we
always invest in, and we look forward to the year with a high measure of
confidence.
As of December 31, 1997, the top five holdings in the Fund's portfolio were SAP
Preferred (2.93%), Takeda Chemical (2.42%), Adidas (2.26%), Rohm (2.19%) and
Mannesmann (2.07%).**
- -------
+ International investing involves increased risk and volatility.
* The total return, with the maximum 4.50% sales charge, was -12.30% for the
period.
** The composition of the Fund's portfolio is subject to change.
12
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(12/29/92)
- ------------------------------------------------
Investor A* -2.94% 8.61% 8.58%
- ------------------------------------------------
Institutional 1.80% 9.87% 9.85%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
Date Investor A* Institutional Morgan Stanley Europe
Australia & Far East
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
12/97 15,815 16,009 16,510
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** -3.98% 1.34%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Morgan Stanley Europe
Date Investor B** Australia & Far East
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
12/97 10,534 11,673
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(12/29/92)
- ------------------------------------------------
Investor C*** 0.79% 9.48% 9.46%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor C*** Morgan Stanley Europe
Australia & Far East
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
12/97 15,729 16,511
The Fund's performance is being compared to the Morgan Stanley Capital
International Europe, Australia and Far East (MSCI 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
indicative 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 Decembers 31, 1997
CONSERVATIVE ALLOCATION FUND
While the year was a tumultuous one in the financial markets, it was a good one
all in all for the Fund. After watching employment numbers anxiously throughout
the spring, investors were finally convinced that inflation was not a problem.
Interest rates began to decline. Bonds gained ground throughout the summer. And
then, in the fall, on news of troubles in Asia, investors fled to safety and
quality--and large-cap stocks and high- quality fixed-income securities were
their investments of choice.
With sizable exposures in each of these sectors throughout the period, the Fund
was well-positioned to benefit, and did. Our portfolio, however, also held
positions in mid-capitalization stocks, which were trampled underfoot as
investors moved en masse to the larger cap sector over the course of the year.
Consequently, the Fund slightly lagged its industry averages. For the six
months ended December 31, 1997, the Fund produced a total return of 5.66%
(Institutional Shares), versus a return of 33.36% for the S&P 500 and a return
of 9.62% for the Salomon Brothers Broad Index.
A CAUTIOUSLY OPTIMISTIC OUTLOOK
We expect the months ahead to be good ones for the Fund. While we expect to see
some slowing in the coming year, our economy is growing and inflation is under
control. In short, the fundamentals are very strong--which may put further
downward pressure on interest rates. All of which provides a very solid
foundation for stocks, and may create an even more positive environment for
fixed-income investments in the months ahead. Consequently, while we will
approach cautiously, we are optimistic about prospects for the financial
markets in the months ahead.
As of December 31, 1997, approximately 27% of the fund's assets were invested
in stocks, 67% in bonds and notes with the remaining 6% held 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 average maturity of these
holdings was 9.1 years. The top five holdings in the equity portion of the
portfolio were Peoplesoft (0.08%), Service Corp. Int'l (0.6%), Cardinal Health
(0.6%), SunAmerica, Inc. (0.6%) and Cendant Corp. (0.5%).*
- -------
* The Portfolio's composition is subject to change.
14
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- --------------------------------------
Since
1 Year Inception
(12/30/96)
- --------------------------------------
Institutional 10.80% 10.80%
- --------------------------------------
[LINE GRAPH APPEARS HERE]
CONSERVATIVE ALLOCATION FUND
Value of $10,000 Investment
Lehman
Intermediate Salomon
Government/ Brothers
Corporate Broad
Date Institutional S&P 500 Bond Index Index
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
12/97 11,012 13,333 10,787 10,964
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 December 31, 1997
BALANCED ALLOCATION FUND
Despite the fact that the eventual impact of the Asian Flu on U.S. corporations
was unclear, investors sought the safety and quality of large-cap stocks in the
six months ended December 31, 1997. Over the course of the period, the 50
biggest U.S. stocks performed well, and international, mid-cap and small-cap
stocks--regardless of fundamental strength or growth prospects--were left
behind.
At the same time, declining interest rates and increased investor interest in
high-quality instruments sparked a rally in the fixed-income markets. However,
while bonds posted a solid return, they, too, lagged the S&P 500. In short,
with stock market sentiment so narrowly focused throughout the period, the
performance of widely diversified portfolios suffered--and ours was no
exception. For the six months ended December 31, 1997, the Fund produced a
total return of 4.62% (Investor A Shares). *
THE TIDE WILL TURN
Despite the events of the past several months, it is unrealistic to believe
that the market's infatuation with larger capitalization stocks will last
forever. Valuations in the sector are very high in comparison to small- and
mid-capitalization stocks. On a risk-adjusted basis, bonds, too, look very
attractive. In recent weeks, there has been evidence that investors are
beginning to recognize the values that exist in these sectors--and we expect to
see this trend accelerate as our economy slows. Therefore, we are optimistic
about the Fund's prospects in the months ahead.
As of December 31, 1997, approximately 48% of the fund's assets were invested
in stocks, 45% in bonds and the remaining 7% was held 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 average maturity of these
holdings was 9.1 years. The top five holdings in the equity portion of the
portfolio were Peoplesoft (0.8%), Sun America, Inc. (0.7%), Service Corp.
International (0.7%), Cardinal Health (0.6%) and Dura Pharmaceuticals (0.6%).**
- -------
* The total return, with the maximum 4.50% sales charge, was -0.07% for the
period.
** The Portfolio's composition is subject to change.
16
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
- ------------------------------------------------
Investor A* 6.38% 9.76% 10.10%
- ------------------------------------------------
Institutional 11.67% 10.95% 11.12%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
BALANCED ALLOCATION FUND
Value of $10,000 Investment
Salomon
Brothers
Broad
Date Investor A* Institutional S&P 500 Index
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
12/97 17,686 18,679 27,593 15,670
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 5.58% 9.56%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon
Brothers
Broad
Date Investor B** S&P 500 Index
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
12/97 14,291 19,796 12,909
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
- ------------------------------------------------
Investor C*** 10.58% 10.11% 10.42%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon
Brothers
Broad
Date Investor C*** S&P 500 Index
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
12/97 17,985 27,593 15,670
The Fund's performance is being 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 indicative of
future results. The investment return and NAV will fluctuate, so that an
investor's share, when redeemed, may be worth more or less than their original
cost.
17
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Fund December 31, 1997
AGGRESSIVE ALLOCATION FUND
As the market roared to record levels in the first half of the year ended
December 31, 1997, investors sought the safety of big names. Then, as interest
rates plummeted and trouble arose in Asian currency markets, liquidity concerns
dominated. As a result, international, small-cap and mid-cap stocks--regardless
of their fundamental strength--wilted from neglect.
Throughout much of the period, approximately 67% of the Fund's assets were
invested in equities. While some of these holdings were invested in large-cap
companies, the portfolio also held a number of small- and mid-cap companies--as
well as a sizable component of international stocks. Consequently, because
market sentiment was so narrowly focused throughout the period, performance
suffered. For the year ended December 31, 1997, the Fund produced a total
return of 3.73% (Institutional Shares)*.
THE LONG-TERM PERSPECTIVE
Despite the events of the past several months, its unrealistic to believe that
the market's infatuation with larger capitalization stocks will last forever.
Valuations in the sector are very high in comparison to small- and mid-
capitalization stocks. In recent weeks, there's been evidence that investors
are beginning to recognize the values that exist in these sectors--and we
expect to see this trend accelerate as our economy slows. Moreover, as every
crises does, the troubles in Asia will produce a number of opportunities.
Consequently, we are optimistic about the Fund's prospects in the months ahead
and more committed than ever to a balanced approach to the marketplace.
Historically, such a strategy has helped to reduce volatility and increase the
potential for growth--and we have no reason to believe that this won't be the
case in the coming years.
As of December 31, 1997, approximately 66% of the fund's assets were invested
in stocks, 28% in bonds and the remaining 6% were held in cash or cash
equivalents. The fixed-income portion of the portfolio was widely diversified,
with exposures in corporate bonds, mortgage-related and asset-backed securities
as well as Treasury securities. The average maturity of these holdings was 9.1
years. The top five holdings in the equity portion of the portfolio were
Peoplesoft (1.1%), SunAmerica, Inc. (0.9%), Cardinal Health (0.9%), Service
Corp. Int'l (0.9%) and Dura Pharmaceuticals (0.8%).*
- ----------
* The Portfolio's composition is subject to change.
18
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- -------------------------------------
Since
1 Year Inception
(12/30/96)
- -------------------------------------
Institutional 10.34% 10.34%
- -------------------------------------
[LINE GRAPH APPEARS HERE]
AGGRESSIVE ALLOCATION FUND
Value of $10,000 Investment
Salomon Brothers
Date Institutional S&P 500 Broad Index
12/96 10,000 10,000 10,000
3/97 9,565 10,262 9,948
6/97 10,638 12,057 10,307
12/97 11,034 13,333 10,964
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 Aggressive Allocation Fund reflects the deduction of fees for
these value-added services.
Past performance is not indicative 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.
19
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Fund December 31, 1997
EQUITY INCOME FUND
\igh-quality, dividend-paying stocks were very popular during the six months
ended December 31, 1997. With interest rates declining and Asian financial
markets in trouble, investors sought safety. Financial services, utility and
energy stocks did particularly well in this environment. Heavily weighted in
these areas, the Fund benefited and produced a total return of 8.43% (Investor
A Shares) for the six months ended December 31, 1997.*
Among the strongest performers of the portfolio were its holdings in financial
services. Over the course of 1997, PNC (2.02%), First Tennessee (2.21%) and
Allstate Insurance (1.16%) all posted gains over 20%. Pharmaceuticals,
utilities and energy stocks also made solid contributions over the six months
and over the course of 1997.
INTERESTING TIMES AHEAD
With the situation in Asia still unraveling and investors unclear as to what
this means for the U.S. economy, we expect the year ahead to be a volatile one
for the stock market. At the same time, however, the U.S. economy remains
fundamentally sound; inflation is benign; and interest rates are declining.
Yes, the situation in Asia is worrisome. However, it is important to note that
while we do have holdings in the financial sector, most are smaller,
domestically oriented financial services companies unlikely to feel much impact
from any currency crises. The same holds true for our exposures in utilities,
consumer staples, retailing and health care. While our holdings in drug and oil
companies are somewhat more vulnerable, the Fund is not overweighted in either
area. Therefore, while the ride may be a little rockier than in the past, we
remain very optimistic about the Fund's prospects in the months ahead.
As of December 31, 1997, the top five holdings in the Fund's portfolio were
Bristol Myers Squibb Co. (3.5%), Eli Lilly & Co. (3.3%), JC Penney Co. (3.1%),
MBNA (3.1%) and Flowers Industries (3.1%).**
- ------------
* The total return, with the maximum 4.50% sales charge, was 3.58% for the
period.
** The portfolio's composition is subject to change.
20
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 19.47% 13.01% 13.93%
- ------------------------------------------------
Institutional 25.48% 14.19% 14.58%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
EQUITY INCOME FUND
Value of $10,000 Investment
Date Investor A* Institutional S&P 500
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
12/97 33,096 34,874 45,231
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 19.18% 13.06%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor B** S&P 500
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
12/97 16,158 22,109
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** 24.23% 13.52% 14.22%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Date Investor C*** S&P 500
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
12/97 33,862 45,231
The Fund's performance is being compared to the Standard & Poor's 500 Stock
Index, which represents the performance of the U.S. stock market as a whole.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Equity Income Fund reflects the deduction of fees
for these value-added services.
Past performance is not indicative 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 December 31, 1997
THE FIXED INCOME FUNDS
After playing second fiddle to stocks for several years, the bond markets took
center stage as sentiment shifted in the six months ended December 31, 1997.
Benign inflation, a growing economy and the prospect of the first federal
budget surplus in decades caused rates to drift downward throughout the summer
and early fall. Then, in October, with the stock market growing more volatile,
and word of the currency crisis in Asia, investors sought quality and safety.
Long-term interest rates moved decisively lower. Fixed-income securities across
the spectrum benefited--but, given investors' concerns, the high-quality
securities, particularly mortgaged-backed securities, were among the most
popular.
We expect the months ahead to be good ones for the bond markets. As events have
unfolded in Asia, it has become clear that the situation will take some time to
play itself out. While it is unclear just how the U.S. economy will be
impacted, it is apparent that we will see some slowing of growth. This would
put further downward pressure on rates--and create a very attractive
environment for bonds.
Regardless of our optimism, however, we expect to approach the marketplace
cautiously in the months ahead. In a declining environment, prepayment risk
historically has risen significantly--and given the technological advances of
the past several years, refinancing is a much more efficient and rapid process
today. Consequently, while the mortgage-backed sector did particularly well
over the past several months, prepayment risk may rise dramatically if rates
drop lower. In short, careful security selection will be critical to success in
the months ahead.
BOND FUND
Throughout the six months ended December 31, 1997, the Fund was positioned
conservatively. Despite the fact that mortgage-backed securities were
performing strongly, the Fund was underweighted in the sector. This was simply
because these securities did not represent good value on a fundamental basis--
as interest rates fell, little or no compensation was offered for growing
prepayment risk.
At the same time, however, as news of troubles in Asia reached the fixed-income
market, spreads widened in the corporate markets--and we seized a number of
very attractive opportunities there as the year ended. Therefore, for the six
months ended December 31, 1997, the Fund produced a total return of 5.93%
(Investor A Shares).*
As of December 31, 1997, approximately 60% of the Fund's assets were invested
in corporate bonds, 27% in mortgage-backed and asset-backed securities, and 7%
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 was 11.4 years.** Barring a significant change in the market
environment, no major changes are anticipated in the portfolio's allocation,
maturity or credit structures in the months ahead.
- -------------
* The total return, with the maximum 4.00% sales charge, was 1.73% for the
period.
** The Portfolio's composition is subject to change.
22
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 4.76% 6.03% 7.62%
- ------------------------------------------------
Institutional 9.32% 7.20% 8.27%
- ------------------------------------------------
* Reflects 4.00% Sales Charge
[LINE GRAPH APPEARS HERE]
BOND FUND
Value of $10,000 Investment
Salomon Brothers
Date Investor A* Institutional Broad Index
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
12/97 19,619 20,739 22,144
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 3.28% 4.81%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
Date Investor B** Broad Index
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
12/97 12,017 12,909
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** 8.22% 6.03% 7.63%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
Date Investor C*** Broad Index
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
12/97 19,636 22,144
The Fund's performance is being 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 indicative 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 December 31, 1997
LIMITED MATURITY BOND FUND
Designed to provide investors with low volatility and higher returns than money
market funds, the Fund did its job well during the six months ended December
31, 1997. Invested primarily in corporate bonds and asset-backed securities,
the portfolio produced a total return of 2.99% (Investor A Shares)* for the
period.
Looking ahead, while we are optimistic about the prospects for the fixed-income
markets, opportunities in the shorter end of the curve may not be as plentiful
as in the longer end. Nevertheless, as the year drew to a close, corporate
securities performed very well, as balance sheets continued to strengthen, and
offered investors solid opportunities. At that time, we capitalized on several
corporate issues, and in the months ahead, we would hope to add further to our
weighting in the sector.
As of December 31, 1997, approximately 40% of the Fund's assets were invested
in corporate bonds, 13% in asset-backed securities, and 32% in U.S. Treasuries,
with the remainder invested in U.S. agency securities and Cash Equivalents. As
of the same date, the average credit quality of the portfolio was Aaa; the
average maturity 2.6 years.**
- -------------
*The total return, with the maximum 4.00% sales charge, was-1.17% for the
period.
**The Portfolio's composition is subject to change.
24
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 1.42% 4.37% 6.23%
- ------------------------------------------------
Institutional 5.83% 5.42% 6.81%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
LIMITED MATURITY BOND FUND
Value of $10,000 Investment
Salomon
Brothers
1--5-Year
Investment-Grade
Date Investor A* Institutional Bond Index
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
12/97 18,138 18,308 19,870
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** -0.11% 3.39%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
1--5-Year
Investment-Grade
Date Investor B** Bond Index
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
12/97 11,392 12,467
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** 4.80% 4.07% 6.06%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
1--5-Year
Investment-Grade
Date Investor C*** Bond Index
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
12/97 17,160 19,870
The Fund's performance is being 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 indicative of future results. The investment return and
NAV will fluctuate, so that an investor's shares, when redeemed, may be worth
more or less than their original cost.
25
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Invested primarily in Treasury bonds and mortgage-backed securities, the Fund
performed very well over the period, as investors fled to quality. For the six
months ended December 31, 1997, the portfolio produced a total return of 4.34%
(Investor A Shares)*.
Nonetheless, as interest rates moved gradually lower, prepayment risks moved
upward--regardless of the fact that investors seemed content to ignore this
throughout much of 1997. In the months ahead, should interest rates decline,
those risks can only be expected to grow greater. Moreover, given the speed and
efficiency with which borrowers can now refinance, a change in sentiment that
once took several months to impact the marketplace could now take place within
a matter of days.
Therefore, in the months ahead, we expect to approach the markets cautiously.
Exposure in the mortgage-backed sector may be gradually peeled back in favor of
Treasury securities. As of December 31, 1997, approximately 69% 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 4.1 years. **
- -------
* The total return, with the maximum 4.00% sales charge, was 0.12% for the
period.
** The Portfolio's composition is subject to change.
26
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 2.34% 4.55% 6.45%
- ------------------------------------------------
Institutional 6.91% 5.62% 7.05%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Value of $10,000 Investment
Salomon Brothers
1--10-Year
Date Investor A* Institutional Treasury Index
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
12/97 17,750 18,681 20,316
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 0.88% 3.94%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
1--10-Year
Date Investor B** Treasury Index
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
12/97 11,436 12,450
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor C*** 5.90% 4.34% 6.34%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers
1--10-Year
Date Investor C*** Treasury Index
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
12/97 17,575 20,316
The performance of the Fund is being 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 indicative 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 December 31, 1997
U.S. GOVERNMENT INCOME FUND
Invested primarily in government-assisted mortgage loans ten or more years old,
the Fund benefited from investor interest in mortgage-backed securities over
the six months ended December 31, 1997. Unlike other funds of this type,
however, the average maturity of the holdings in the portfolio is in the
intermediate range--and the strongest performers in the mortgage-backed sector
were concentrated in the longer end of the curve. Nonetheless, the period was a
good one for the Fund, which produced a return of 5.04% (Investor A Shares).*
Looking ahead, we believe the next few months will be good ones for the Fund.
While increasing prepayment risk clouds the future for much of the mortgage-
backed sector, the Fund's holdings have proven to be relatively impervious to
the ups and downs of interest rates over the years. Certainly, if rates fall to
record lows, the Fund will experience some refunding.
As of December 31, 1997, approximately 78% of the Fund's assets were invested
in mortgage-backed securities and commercial mortgage obligations, and 22% in
U.S. Treasury and agency securities. As of the same date, the average duration
of the Fund's holdings was 2.83 years.**
- -----------------
*The total return, with the maximum 4.00% sales charge, was 0.85% for the
period.
**The Portfolio's composition is subject to change.
28
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(11/12/92)
- ------------------------------------------------
Investor A* 3.52% 5.59% 5.50%
- ------------------------------------------------
Institutional 8.14% 6.63% 6.53%
- ------------------------------------------------
* Reflects 4.00% Sales Charge
[LINE GRAPH APPEARS HERE]
U.S. GOVERNMENT INCOME FUND
Value of $10,000 Investment
Salomon Brothers 1--10-
Date Investor A* Institutional Year Treasury Index
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
12/97 13,167 13,840 14,404
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 1.99% 4.78%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers 1--10-
Date Investor B** Year Treasury Index
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
12/97 12,004 12,450
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(11/12/92)
- ------------------------------------------------
Investor C*** 6.98% 5.44% 5.37%
- ------------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Salomon Brothers 1--10-
Date Investor C*** Year Treasury Index
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
12/97 13,083 14,404
The Fund is being 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 indicative 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 December 31, 1997
THE TAX-FREE INCOME FUNDS
Much like the taxable markets, the municipal markets reacted to each number and
statistic reported and all rumors circulated during the six months ended
December 31, 1997. Moreover, as troubles grew in Asia and investors fled to
safety and liquidity, sentiment favored Treasury securities. Markets across the
country weakened, and municipals underperformed Treasury securities over the
course of the period.
Looking ahead, there's little reason to believe that the markets will cease
running the gamut of emotion in response to events at home and abroad.
Nonetheless, we are optimistic about the long-term prospects for the municipal
markets. Recent weakness has created a number of very attractive opportunities.
In addition, recent volatility in the stock market has increased investor
interest in fixed-income securities. We expect to see their popularity grow in
the years ahead as baby boomers move closer to retirement and seek the tax
benefits municipals offer.
THE MUNICIPAL BOND FUND
Supply of new securities was steady in municipal markets across the country
during the six months ended December 31, 1997. Given the fact that insurance is
now relatively cheap, over fifty percent of the new issues coming to market
were insured. As a result, credit spreads narrowed as the premiums to assume
additional risk vanished. In short, even if you were a die-hard opportunist,
you would have had a hard time finding opportunity in the marketplace.
As always, we focused our efforts on intermediate-term, higher quality
securities and approached the markets cautiously. As a result, while the
environment was somewhat volatile due to the problems in Asia, the Fund kept
pace with its peers. For the six months ended December 31, 1997, it posted a
total return of 4.29% (Investor A Shares).*
Barring a dramatic shift in the environment, no major changes are anticipated
in the Fund's credit or maturity structure in the months ahead. As of December
31, 1997, the average maturity of assets in the Fund's portfolio was 7.43
years; the average credit quality was AA. Widely diversified, the portfolio
held securities issued by more than 32 municipalities as of the same date.**
- -------
* The total return, with the maximum 4.00% sales charge, was 0.11% for the
period.
** The portfolio's composition is subject to change.
30
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------------
Investor A* 1.99% 4.58% 5.83%
- ------------------------------------------------
Institutional 6.52% 5.64% 6.42%
- ------------------------------------------------
* Reflects 4.50% Sales Charge
[LINE GRAPH APPEARS HERE]
MUNICIPAL BOND FUND
Value of $10,000 Investment
Lehman Brothers
Mutual Fund
Intermediate
Date Investor A* Institutional Index
10/88 9,597 10,000 10,000
6/89 10,127 10,552 10,672
6/90 10,590 11,035 11,398
6/91 11,385 11,863 12,424
6/92 12,422 12,944 13,888
6/93 13,597 14,171 15,548
6/94 13,694 14,286 15,579
6/95 14,656 15,322 16,945
6/96 15,285 16,019 18,106
6/97 16,123 16,962 18,553
12/97 16,815 17,697 19,475
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 0.52% 3.08%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Lehman Brothers
Mutual Fund
Date Investor B** Intermediate Index
2/94 10,000 10,000
6/94 9,277 9,450
6/95 9,870 10,279
6/96 10,322 10,983
6/97 10,830 11,255
12/97 11,259 11,814
The Fund's performance is being compared to the Lehman Brothers Mutual Fund
Intermediate Index, which represents the performance of the municipal bond
market as a whole. The index is unmanaged and does not reflect the deduction of
fees associated with a mutual fund, such as investment management and fund
accounting fees.
The performance of the Parkstone Municipal Bond Fund reflects the deduction of
fees for these value-added services. Past performance is not indicative 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 December 31, 1997
MICHIGAN MUNICIPAL BOND FUND
Bond insurance was also prevalent on new issues in Michigan during the six
months ended December 31, 1997. With insurance, these bonds traded lower in
yield and offered investors little incentive to purchase. Moreover, supply in
the Michigan market continued to be somewhat tight. Therefore, opportunities
worth the chase were rare during the period. Despite the environment, however,
the Fund performed well and posted a return of 4.58% (Investor A Shares)*.
Looking ahead, we expect the supply of new issues to increase very soon, as
many school bond elections are scheduled for February and March. In addition,
the recent slide in long-term rates may prompt many municipalities to consider
refunding outstanding debt. At the very least, greater supply will increase
flexibility; at the most, it will create opportunity. Therefore, we are
optimistic about the Fund's prospects in the months ahead.
As of December 31, 1997, the average maturity of assets in the Fund's portfolio
was 8.07 years; the average credit quality was AA. No more than 5% of the
Fund's assets are invested in any one issue.**
- -------
* The total return, with the maximum 4.00% sales charge, was 0.43% for the
period.
** The portfolio's composition is subject to change.
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
- ------------------------------------------------
Investor A* 2.68% 4.94% 5.94%
- ------------------------------------------------
Institutional 7.22% 6.01% 6.67%
- ------------------------------------------------
* Reflects 4.00% Sales Charge
[LINE GRAPH APPEARS HERE]
MICHIGAN MUNICIPAL BOND FUND
Value of $10,000 Investment
Lehman Brothers Mutual
Date Investor A* Institutional Fund Intermediate Index
7/90 9,597 10,000 10,000
6/91 10,247 10,677 10,884
6/92 11,244 11,716 12,065
6/93 12,301 12,820 13,338
6/94 12,414 12,951 13,487
6/95 13,282 13,900 14,608
6/96 13,928 14,611 14,861
6/97 14,749 15,503 15,995
12/97 15,426 16,236 16,790
Average Annual Total Return
As of December 31, 1997
- ------------------------------------------------
Since
1 Year Inception
(2/4/94)
- ------------------------------------------------
Investor B** 1.09% 3.32%
- ------------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Lehman Brothers Mutual
Date Investor B** Fund Intermediate Index
2/94 10,000 10,000
6/94 9,251 9,566
6/95 9,848 10,405
6/96 10,368 10,585
6/97 10,902 11,393
12/97 11,361 11,959
The Fund's performance is being compared to the Lehman Brothers Mutual Fund
Intermediate Index, which represents the performance of municipal bonds in that
maturity range. The index is unmanaged and does not reflect the deduction of
fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Michigan Municipal Bond Fund
reflects the deduction of fees for these value-added services.
Past performance is not indicative 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 December 31, 1997
THE MONEY MARKET FUNDS
Looking at strong job growth numbers, investors expected interest rates to
rise as the six months ended December 31, 1997, opened. However, inflationary
pressure failed to materialize, and rates drifted slightly lower. Then, in
October, when indications of trouble in the Asian markets appeared, the money
markets grew more volatile. When all was said and done, however, short-term
rates moved up and down within a relatively narrow range during the period.
Looking ahead, it is clear that Asia's problems will not be solved overnight.
Nonetheless, the impact on the U.S. economy may be minimal. What is more, once
this is apparent, investors may again focus on job growth--and realize that
unemployment is at the lowest levels seen in decades. While we do not expect
to see interest rates rise significantly any time soon, inflation anxiety may
return in the very near future.
As a result, we expect to approach the marketplace very cautiously in the
months ahead. Maturities may be lengthened slightly when attractive
opportunities to do so arise. In recent months, however, such opportunities
have been rare, as spreads did not justify additional risk.
. THE PRIME OBLIGATIONS FUND: As of December 31, 1997, approximately 83.7% 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 45 days.*
. THE U.S. GOVERNMENT OBLIGATIONS FUND: As of December 31, 1997, the Fund's
assets were invested in overnight securities, as well as in short-term agency
and Treasury securities. The average maturity of the portfolio was 38 days.*
. THE TREASURY FUND: Approximately 83.1% of the Fund's assets were held in
repurchase agreements as of December 31, 1997, and the average maturity of the
portfolio was 28 days.*
. THE TAX-FREE FUND: As of December 31, 1997, the average maturity of assets
in the Fund's portfolio was 55 days. As of the same date, assets were invested
primarily in high-quality variable-demand notes, tax-exempt commercial paper
and short-term bonds.*
- ------------
* The composition of the portfolios are subject to change.
An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Funds will be able to
maintain a stable net asset value of $1.00 per share.
The Parkstone Mutual Funds are a family of mutual funds that are distributed
by BISYS Fund Services. For more complete information on any of the
Parkstone Mutual Funds, including fees, expenses and sales charges, please
call 1-800-355-4555 for a free prospectus. Please read the prospectus
carefully before investing or sending money.
The material is authorized for distribution to prospective investors only
when preceded or accompanied by a prospectus.
33
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997 (Unaudited)
<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............ $791,824 $248,632 $183,148 $ 82,291
Repurchase agreements............ 85,333 118,092 -- 399,188
-------- -------- -------- --------
Total Investments (amortized
cost $877,157; $366,724;
$183,148; and $481,479,
respectively).................. 877,157 366,724 183,148 481,479
Cash............................. -- 1 1 --
Interest and dividends
receivable...................... 382 1,423 1,145 1,296
Receivable for capital shares
issued.......................... 328 -- 89 --
Prepaid expenses................. 31 7 -- 7
-------- -------- -------- --------
TOTAL ASSETS..................... 877,898 368,155 184,383 482,782
-------- -------- -------- --------
LIABILITIES:
Dividends payable................ 3,749 1,530 465 2,052
Payable for capital shares
redeemed........................ 1 -- 1 --
Accrued expenses and other
payables:
Investment advisory fees........ 10 4 2 5
Administration fees............. 71 29 14 21
12b-1 fees (Investor A)......... 17 17 5 15
Accounting fees................. 6 3 1 3
Transfer agent fees............. -- -- 12 1
Legal fees...................... -- -- 1 --
Audit fees...................... 14 5 5 2
Trustees' fees and expenses..... -- -- -- --
Custodian fees.................. 13 6 3 9
Other........................... 13 31 30 37
-------- -------- -------- --------
TOTAL LIABILITIES................ 3,894 1,625 539 2,145
-------- -------- -------- --------
NET ASSETS:
Paid-in capital.................. 874,004 366,531 183,844 480,632
Accumulated undistributed
(distributions in excess of) net
investment income............... -- 1 -- --
Accumulated undistributed net
realized gains (losses) on
investment transactions......... -- (2) -- 5
-------- -------- -------- --------
NET ASSETS....................... $874,004 $366,530 $183,844 $480,637
======== ======== ======== ========
Net Assets
Investor A...................... $179,166 $193,943 $ 61,871 $166,406
Investor B(a)................... 135 -- -- --
Institutional................... 694,703 172,587 121,973 314,231
-------- -------- -------- --------
Total......................... $874,004 $366,530 $183,844 $480,637
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A...................... 179,162 193,927 61,874 166,406
Investor B(a)................... 135 -- -- --
Institutional................... 694,702 172,572 121,970 314,225
-------- -------- -------- --------
Total......................... 873,999 366,499 183,844 480,631
======== ======== ======== ========
Net asset value--offering and
redemption price per share
Investor A...................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
Investor B(a)*.................. $1.000 $ -- $ -- $ --
====== ====== ====== ======
Institutional................... $1.000 $1.000 $1.000 $1.000
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
(a) Commencement of operations for the Prime Obligations Fund was September 26,
1997.
See notes to financial statements.
34
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997 (Unaudited)
<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 $607,627;
$444,094; $238,950; and
$364,448,
respectively).......... $814,965 $612,817 $332,316 $443,820
Repurchase agreements,
at cost................ 22,388 15,704 8,003 --
-------- -------- -------- --------
TOTAL INVESTMENTS....... 837,353 628,521 340,319 443,820
Cash.................... -- 1 -- --
Interest and dividends
receivable............. 93 117 213 398
Foreign currency (Cost
$0; $0; $0; $11,
respectively).......... -- -- -- 11
Receivable from brokers
for investments sold... -- -- -- 2,748
Receivable for capital
shares issued.......... 785 118 41 306
Prepaid expenses and
other assets........... 76 13 11 13
-------- -------- -------- --------
TOTAL ASSETS............ 838,307 628,770 340,584 447,296
-------- -------- -------- --------
LIABILITIES:
Cash overdraft.......... -- -- -- 9
Payable to brokers for
investments purchased.. -- -- -- 17
Payable for capital
shares redeemed........ 139 117 142 54
Accrued expenses and
other payables:
Investment advisory
fees.................. 23 17 8 14
Administration fees.... 68 51 29 38
12b-1 fees (Investor
A).................... 38 17 4 9
12b-1 fees (Investor
B).................... 29 14 4 8
12b-1 fees (Investor
C).................... 9 1 -- 1
Accounting fees........ 23 6 3 6
Transfer agent fees.... -- -- -- 23
Legal fees............. -- 2 -- --
Audit fees............. 12 14 3 6
Trustees' fees and
expenses.............. 1 2 1 --
Custodian fees......... 16 18 8 84
Other.................. 68 88 33 48
-------- -------- -------- --------
TOTAL LIABILITIES....... 426 347 235 317
-------- -------- -------- --------
NET ASSETS:
Paid-in capital......... 618,109 440,773 248,397 373,451
Accumulated
undistributed
(distributions in
excess of) net
investment income...... (4,568) (2,809) (219) (2,139)
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 207,337 168,723 93,366 79,349
Accumulated
undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... 17,003 21,736 (1,195) (3,682)
-------- -------- -------- --------
NET ASSETS.............. $837,881 $628,423 $340,349 $446,979
======== ======== ======== ========
Net Assets
Investor A............. $197,032 $ 91,367 $ 18,000 $ 44,004
Investor B............. 47,007 23,585 6,695 12,461
Investor C............. 15,417 2,172 122 934
Institutional.......... 578,425 511,299 315,532 389,580
-------- -------- -------- --------
Total................ $837,881 $628,423 $340,349 $446,979
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A............. 7,681 6,537 1,288 3,053
Investor B............. 1,878 1,775 485 890
Investor C............. 614 162 9 65
Institutional.......... 22,195 36,286 22,496 26,736
-------- -------- -------- --------
Total................ 32,368 44,760 24,278 30,744
======== ======== ======== ========
Net asset value--
offering and redemption
price per share
Investor A............. $25.65 $13.98 $13.97 $14.42
====== ====== ====== ======
Investor B*............ $25.03 $13.28 $13.80 $14.00
====== ====== ====== ======
Investor C*............ $25.10 $13.42 $13.70 $14.33
====== ====== ====== ======
Institutional.......... $26.06 $14.09 $14.03 $14.57
====== ====== ====== ======
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)........... $26.86 $14.64 $14.63 $15.10
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
35
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
INTERMEDIATE U.S.
LIMITED GOVERNMENT GOVERNMENT
MATURITY BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
------------- ------------ ---------- --------
ASSETS:
<S> <C> <C> <C> <C>
Investments, at value (cost
$162,008; $187,677; $237,097;
and $507,178, respectively).. $161,523 $188,467 $239,917 $513,112
Repurchase agreements, at
cost......................... 24,370 427 1,955 30,685
-------- -------- -------- --------
TOTAL INVESTMENTS............. 185,893 188,894 241,872 543,797
Cash.......................... -- 1 -- --
Interest and dividends
receivable................... 2,719 3,259 2,574 8,206
Receivable from brokers for
investments sold............. -- 85 777 --
Receivable for capital shares
issued....................... 1,381 -- 103 17
Prepaid expenses and other
assets....................... -- 2 3 --
-------- -------- -------- --------
TOTAL ASSETS.................. 189,993 192,241 245,329 552,020
-------- -------- -------- --------
LIABILITIES:
Payable to brokers for
investments purchased........ -- -- 288 32,856
Payable for capital shares
redeemed..................... 239 12 512 3
Accrued expenses and other
payables:
Investment advisory fees..... 3 4 3 10
Administration fees.......... 13 13 16 35
12b-1 fees (Investor A)...... 7 4 13 4
12b-1 fees (Investor B)...... 1 1 16 4
12b-1 fees (Investor C)...... 1 -- -- --
Accounting fees.............. 2 -- -- 8
Transfer agent fees.......... 9 12 4 2
Legal fees................... -- 1 -- --
Audit fees................... 5 5 5 8
Custodian fees............... 1 4 4 9
Other........................ 13 33 18 48
-------- -------- -------- --------
TOTAL LIABILITIES............. 294 89 879 32,987
-------- -------- -------- --------
NET ASSETS:
Paid-in capital............... 199,412 204,218 250,825 520,213
Accumulated undistributed
(distributions in excess of)
net investment income........ (184) (62) (45) (1,145)
Net unrealized appreciation
(depreciation) from
investments and translation
of assets and liabilities in
foreign currencies........... (485) 790 2,819 5,934
Accumulated undistributed net
realized gains (losses) from
investment and foreign
currency transactions........ (9,044) (12,794) (9,149) (5,969)
-------- -------- -------- --------
NET ASSETS.................... $189,699 $192,152 $244,450 $519,033
======== ======== ======== ========
Net Assets
Investor A................... $ 35,560 $ 16,319 $ 60,009 $ 19,343
Investor B................... 1,382 2,031 25,467 6,534
Investor C................... 2,064 228 153 583
Institutional................ 150,693 173,574 158,821 492,573
-------- -------- -------- --------
Total...................... $189,699 $192,152 $244,450 $519,033
======== ======== ======== ========
Outstanding units of
beneficial interest (shares)
Investor A................... 3,745 1,656 6,483 1,948
Investor B................... 145 207 2,758 657
Investor C................... 222 24 17 59
Institutional................ 15,871 17,620 17,158 49,358
-------- -------- -------- --------
Total...................... 19,983 19,507 26,416 52,022
======== ======== ======== ========
Net asset value--offering and
redemption price per share
Investor A................... $9.50 $ 9.85 $9.26 $ 9.93
===== ====== ===== ======
Investor B*.................. $9.50 $ 9.83 $9.23 $ 9.95
===== ====== ===== ======
Investor C*.................. $9.28 $ 9.66 $9.20 $ 9.90
===== ====== ===== ======
Institutional................ $9.50 $ 9.85 $9.26 $ 9.98
===== ====== ===== ======
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)........... $9.90 $10.26 $9.65 $10.34
===== ====== ===== ======
</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 December 31, 1997 (Unaudited)
<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
$133,324; $236,383; $14,555; and
$238,844, respectively)........... $137,728 $250,261 $15,164 $264,751
Repurchase agreements, at cost..... -- -- 859 17,512
-------- -------- ------- --------
TOTAL INVESTMENTS.................. 137,728 250,261 16,023 282,263
Cash............................... -- -- 1 1
Interest and dividends receivable.. 2,509 3,807 209 2,188
Receivable from brokers for
investments sold.................. -- -- -- 185
Receivable for capital shares
issued............................ -- 39 -- 65
Prepaid expenses and other assets.. -- 1 -- 41
-------- -------- ------- --------
TOTAL ASSETS....................... 140,237 254,108 16,233 284,743
-------- -------- ------- --------
LIABILITIES:
Payable to brokers for investments
purchased......................... -- -- -- 6
Payable for capital shares
redeemed.......................... 68 106 -- 10
Accrued expenses and other
payables:
Investment advisory fees.......... 2 4 -- 6
Administration fees............... 6 11 2 24
12b-1 fees (Investor A)........... 2 9 -- 4
12b-1 fees (Investor B)........... -- 3 -- 5
12b-1 fees (Investor C)........... -- -- -- 1
Accounting fees................... 1 2 1 2
Transfer agent fees............... 5 15 18 --
Audit fees........................ 5 5 10 4
Custodian fees.................... 3 5 -- 4
Other............................. 66 38 2 3
-------- -------- ------- --------
TOTAL LIABILITIES.................. 158 198 33 69
-------- -------- ------- --------
NET ASSETS:
Paid-in capital.................... 135,607 239,660 15,630 258,160
Accumulated undistributed
(distributions in excess of) net
investment income................. (69) (86) (6) 249
Net unrealized appreciation
(depreciation) from investments
and translation of assets and
liabilities in foreign currencies. 4,404 13,878 609 25,920
Accumulated undistributed net
realized gains (losses) from
investment and foreign currency
transactions...................... 137 458 (33) 345
-------- -------- ------- --------
NET ASSETS......................... $140,079 $253,910 $16,200 $284,674
======== ======== ======= ========
Net Assets
Investor A........................ $ 10,053 $ 42,004 $ -- $ 19,077
Investor B........................ 771 3,941 -- 7,249
Investor C........................ -- -- -- 986
Institutional..................... 129,255 207,965 16,200 257,362
-------- -------- ------- --------
Total........................... $140,079 $253,910 $16,200 $284,674
======== ======== ======= ========
Outstanding units of beneficial
interest (shares)
Investor A........................ 952 3,788 -- 1,462
Investor B........................ 73 355 -- 556
Investor C........................ -- -- -- 76
Institutional..................... 12,240 18,751 1,518 19,747
-------- -------- ------- --------
Total........................... 13,265 22,894 1,518 21,841
======== ======== ======= ========
Net asset value--offering and
redemption price per share
Investor A........................ $10.56 $11.09 -- $13.05
====== ====== ====== ======
Investor B*....................... $10.54 $11.10 -- $13.05
====== ====== ====== ======
Investor C*....................... -- -- -- $12.96
====== ====== ====== ======
Institutional..................... $10.56 $11.09 $10.67 $13.03
====== ====== ====== ======
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)................................ $11.00 $11.55 $ -- $13.66
====== ====== ======= ======
</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 December 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except
Per Share Amounts)
AGGRESSIVE EQUITY EMERGING
ALLOCATION INCOME MARKETS
FUND FUND FUND(A)
---------- -------- --------
<S> <C> <C> <C>
ASSETS:
Investments, at value (cost $34,163; $273,548
and 0, respectively)........................ $37,646 $393,836 $ --
Repurchase agreements, at cost............... 2,096 7,977 --
------- -------- ------
TOTAL INVESTMENTS............................ 39,742 401,813 --
Cash......................................... -- 1 10
Interest and dividends receivable............ 192 1,411 --
Receivable from brokers for investments sold. 50 -- --
Receivable for capital shares issued......... -- 147 --
Prepaid expenses and other assets............ 7 1 --
------- -------- ------
TOTAL ASSETS................................. 39,991 403,373 10
------- -------- ------
LIABILITIES:
Cash overdraft............................... 18 -- --
Payable for capital shares redeemed.......... -- 67 --
Accrued expenses and other payables:
Investment advisory fees.................... 1 11 --
Administration fees......................... 3 34 --
12b-1 fees (Investor A)..................... -- 21 --
12b-1 fees (Investor B)..................... -- 15 --
Accounting fees............................. -- 4 --
Transfer agent fees......................... 8 5 --
Audit fees.................................. 3 7 --
Trustees' fees and expenses................. -- 1 --
Custodian fees.............................. 13 11 --
Other....................................... 2 68 --
------- -------- ------
TOTAL LIABILITIES............................ 48 244 --
------- -------- ------
NET ASSETS:
Paid-in capital.............................. 37,050 265,492 10
Accumulated undistributed (distributions in
excess of) net investment income............ 6 133 --
Net unrealized appreciation (depreciation)
from investments and translation of assets
and liabilities in foreign currencies....... 3,463 120,288 --
Accumulated undistributed net realized gains
(losses) from investment and foreign
currency transactions....................... (576) 17,216 --
------- -------- ------
NET ASSETS................................... $39,943 $403,129 $ 10
======= ======== ======
Net Assets
Investor A.................................. $ -- $103,293 $ 2
Investor B.................................. -- 24,956 2
Investor C.................................. -- 852 2
Institutional............................... 39,943 274,028 2
Institutional Z............................. -- -- 2
------- -------- ------
Total..................................... $39,943 $403,129 $ 10
======= ======== ======
Outstanding units of beneficial interest
(shares)
Investor A.................................. -- 5,915 --
Investor B.................................. -- 1,435 --
Investor C.................................. -- 49 --
Institutional............................... 3,669 15,769 --
Institutional Z............................. -- -- --
------- -------- ------
Total..................................... 3,669 23,168 --
======= ======== ======
Net asset value--offering and redemption
price per share
Investor A.................................. -- $17.46 $10.00
====== ====== ======
Investor B*................................. -- $17.39 $10.00
====== ====== ======
Investor C*................................. -- $17.49 $10.00
====== ====== ======
Institutional............................... $10.88 $17.38 $10.00
====== ====== ======
Institutional Z............................. -- -- $10.00
====== ====== ======
Maximum Sales Charge (Investor A)........... -- 4.50% 4.50%
====== ====== ======
Maximum Offering Price (100%/(100%--Maximum
Sales Charge) of net asset value adjusted
to nearest cent) per share (Investor A).... -- $18.28 $10.47
====== ====== ======
</TABLE>
- -----------
*Redemption price per share varies by length of time shares are held.
(a)Commencement of operations was December 29, 1997. Due to the short period in
operation, figures were below the thousand dollar threshold.
See notes to financial statements.
38
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT TAX-
OBLIGATIONS OBLIGATIONS FREE TREASURY
FUND FUND FUND FUND
----------- --------------- ---- --------
INVESTMENT INCOME:
<S> <C> <C> <C> <C>
Interest income................... $23,971 $10,917 $3,142 $13,885
Dividend income................... -- -- 79 --
------- ------- ------ -------
TOTAL INCOME...................... 23,971 10,917 3,221 13,885
------- ------- ------ -------
EXPENSES:
Investment advisory fees.......... 1,676 782 351 996
Administration fees............... 838 391 175 498
12b-1 fees (Investor A)........... 241 251 71 214
Accounting fees................... 75 37 20 45
Custodian fees.................... 40 17 7 19
Legal fees........................ 11 5 -- 6
Audit fees........................ 9 5 -- 6
Trustees' fees and expenses....... 6 2 1 2
Transfer agent fees............... 73 41 31 38
Registration and filing fees...... 22 8 -- 3
Printing costs.................... 67 28 14 34
Other............................. 7 3 1 3
------- ------- ------ -------
TOTAL EXPENSES.................... 3,065 1,570 671 1,864
------- ------- ------ -------
Less: Expenses voluntarily
reduced.......................... (229) (189) (60) (377)
------- ------- ------ -------
Net Expenses...................... 2,836 1,381 611 1,487
------- ------- ------ -------
Net Investment Income............. 21,135 9,536 2,610 12,398
------- ------- ------ -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions.......... -- 6 -- 26
------- ------- ------ -------
Net realized gains (losses) from
investments...................... -- 6 -- 26
------- ------- ------ -------
Change in net assets resulting
from operations.................. $21,135 $ 9,542 $2,610 $12,424
======= ======= ====== =======
</TABLE>
See notes to financial statements.
39
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1997
(Unaudited)
<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......... $ 1,747 $ 1,206 $ 452 $ 606
Dividend income......... 297 668 1,339 1,903
Withholding tax expense. -- (8) -- (56)
-------- ------- ------- --------
TOTAL INCOME............ 2,044 1,866 1,791 2,453
-------- ------- ------- --------
EXPENSES:
Investment advisory
fees................... 4,509 3,399 1,419 2,741
Administration fees..... 902 680 355 477
12b-1 fees (Investor A). 259 110 19 60
12b-1 fees (Investor B). 185 88 21 50
12b-1 fees (Investor C). 58 8 -- 3
Accounting fees......... 111 86 50 100
Custodian fees.......... 34 25 15 207
Legal fees.............. 11 7 4 6
Audit fees.............. 9 7 5 5
Trustees' fees and
expenses............... 3 3 1 2
Transfer agent fees..... 329 158 57 147
Registration and filing
fees................... 45 22 28 20
Printing costs.......... 66 43 27 33
Insurance............... 6 7 2 3
Other................... 85 32 7 18
-------- ------- ------- --------
TOTAL EXPENSES.......... 6,612 4,675 2,010 3,872
-------- ------- ------- --------
Net Investment Income
(Loss)................. (4,568) (2,809) (219) (1,419)
-------- ------- ------- --------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment and foreign
currency transactions.. 49,010 85,371 23,866 10,047
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (59,162) (23,104) 7,260 (48,166)
-------- ------- ------- --------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. (10,152) 62,267 31,126 (38,119)
-------- ------- ------- --------
Change in net assets
resulting from
operations............. $(14,720) $59,458 $30,907 $(39,538)
======== ======= ======= ========
</TABLE>
See notes to financial statements.
40
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1997
(Unaudited)
<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...................... $5,823 $6,800 $10,118 $18,159
Dividend income...................... -- -- -- 475
------ ------ ------- -------
TOTAL INCOME......................... 5,823 6,800 10,118 18,634
------ ------ ------- -------
EXPENSES:
Investment advisory fees............. 659 753 897 1,984
Administration fees.................. 178 203 243 536
12b-1 fees (Investor A).............. 39 22 75 24
12b-1 fees (Investor B).............. 6 8 92 24
12b-1 fees (Investor C).............. 4 -- 1 2
Accounting fees...................... 32 36 59 77
Custodian fees....................... 7 9 9 23
Legal fees........................... 2 2 3 6
Audit fees........................... 3 3 3 6
Trustees' fees and expenses.......... 1 1 1 2
Transfer agent fees.................. 43 56 78 72
Registration and filing fees......... 14 (6) 16 18
Printing costs....................... 14 28 22 42
Insurance............................ 1 2 2 4
Other................................ 3 3 31 9
------ ------ ------- -------
TOTAL EXPENSES....................... 1,006 1,120 1,532 2,829
------ ------ ------- -------
Expenses voluntarily reduced......... (214) (92) (414) (241)
------ ------ ------- -------
NET EXPENSES......................... 792 1,028 1,118 2,588
------ ------ ------- -------
Net Investment Income (Loss)......... 5,031 5,772 9,000 16,046
------ ------ ------- -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS:
Net realized gains (losses) from
investment transactions............. 45 2,109 380 12,413
Net change in unrealized appreciation
(depreciation) from investments..... 224 1,003 2,371 2,833
------ ------ ------- -------
Net realized/unrealized gains
(losses) from investments........... 269 3,112 2,751 15,246
------ ------ ------- -------
Change in net assets resulting from
operations.......................... $5,300 $8,884 $11,751 $31,292
====== ====== ======= =======
</TABLE>
See notes to financial statements.
41
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1997
(Unaudited)
<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................... $3,392 $ 6,390 $333 $ 4,830
Dividend income................... 17 18 11 369
Withholding tax expense........... -- -- -- (9)
------ ------- ---- -------
TOTAL INCOME...................... 3,409 6,408 344 5,190
------ ------- ---- -------
EXPENSES:
Investment advisory fees.......... 536 927 71 1,407
Administration fees............... 145 250 14 281
12b-1 fees (Investor A)........... 13 50 -- 24
12b-1 fees (Investor B)........... 3 14 -- 26
12b-1 fees (Investor C)........... -- -- -- 4
Accounting fees................... 33 49 3 55
Custodian fees.................... 6 10 -- 24
Legal fees........................ 2 3 -- 3
Audit fees........................ 3 4 5 4
Trustees' fees and expenses....... 1 1 -- 1
Transfer agent fees............... 27 44 8 71
Registration and filing fees...... 18 -- 3 25
Printing costs.................... 9 13 1 21
Insurance......................... 1 2 -- 1
Other............................. 1 5 -- 11
------ ------- ---- -------
TOTAL EXPENSES.................... 798 1,372 105 1,958
------ ------- ---- -------
Expenses voluntarily reduced...... (210) (363) (21) (352)
------ ------- ---- -------
NET EXPENSES...................... 588 1,009 84 1,606
------ ------- ---- -------
Net Investment Income (Loss)...... 2,821 5,399 260 3,584
------ ------- ---- -------
REALIZED/UNREALIZED GAINS (LOSSES)
FROM INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains (losses) from
investment and foreign currency
transactions..................... 1,771 826 167 5,072
Net change in unrealized
appreciation (depreciation) from
investments and translation of
assets and liabilities in foreign
currencies....................... 1,505 5,057 274 3,802
------ ------- ---- -------
Net realized/unrealized gains
(losses) from investments and
foreign currencies............... 3,276 5,883 441 8,874
------ ------- ---- -------
Change in net assets resulting
from operations.................. $6,097 $11,282 $701 $12,458
====== ======= ==== =======
</TABLE>
See notes to financial statements.
42
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the six months ended December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE EQUITY EMERGING
ALLOCATION INCOME MARKETS
FUND FUND FUND(A)
---------- ------- --------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest income.................................. $ 448 $ 1,863 $--
Dividend income.................................. 72 4,815 --
Withholding tax expense.......................... (2) (3) --
------ ------- ----
TOTAL INCOME..................................... 518 6,675 --
------ ------- ----
EXPENSES:
Investment advisory fees......................... 205 2,186 --
Administration fees.............................. 41 437 --
12b-1 fees (Investor A).......................... -- 128 --
12b-1 fees (Investor B).......................... -- 87 --
12b-1 fees (Investor C).......................... -- 3 --
Accounting fees.................................. 13 60 --
Custodian fees................................... 28 18 --
Legal fees....................................... -- 5 --
Audit fees....................................... -- 5 --
Trustees' fees and expenses...................... -- 2 --
Transfer agent fees.............................. 1 183 --
Registration and filing fees..................... 3 -- --
Printing costs................................... 2 30 --
Insurance........................................ -- 4 --
Other............................................ -- 30 --
------ ------- ----
TOTAL EXPENSES................................... 293 3,178 --
------ ------- ----
Expenses voluntarily reduced..................... (31) -- --
------ ------- ----
NET EXPENSES..................................... 262 3,178 --
------ ------- ----
Net Investment Income (Loss)..................... 256 3,497 --
------ ------- ----
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses) from investment and
foreign currency transactions................... 60 45,452 --
Net change in unrealized appreciation
(depreciation) from investments and translation
of assets and liabilities in foreign currencies. 1,069 (13,492) --
------ ------- ----
Net realized/unrealized gains (losses) from
investments and foreign currencies.............. 1,129 31,960 --
------ ------- ----
Change in net assets resulting from operations... $1,385 $35,457 $--
====== ======= ====
</TABLE>
- -------
(a) For the period from December 29, 1997 (commencement of operations) to
December 31, 1997. Due to the short period in operation, figures were below
the thousand dollar threshold.
See notes to financial statements.
43
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT
OBLIGATIONS OBLIGATIONS TAX-FREE TREASURY
FUND FUND FUND FUND
----------------------- ----------------------- --------------------- -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997 1997 1997
------------ ---------- ------------ ---------- ------------ -------- ------------ ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss).............. $ 21,135 $ 42,020 $ 9,536 $ 20,287 $ 2,610 $ 4,686 $ 12,398 $ 19,396
Net realized gains
(losses) from
investment
transactions........ -- 6 6 (3) -- (28) 26 46
---------- ---------- -------- ---------- -------- -------- -------- ----------
Change in net assets
resulting from
operations........... 21,135 42,026 9,542 20,284 2,610 4,658 12,424 19,442
---------- ---------- -------- ---------- -------- -------- -------- ----------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income.............. (4,798) (8,431) (4,824) (9,313) (827) (1,450) (4,196) (6,104)
From net realized
gains from
investment
transactions........ -- -- -- -- -- -- (20) --
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS(A):
From net investment
income.............. (1) -- -- -- -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income.............. (16,334) (33,589) (4,675) (10,974) (1,783) (3,236) (8,202) (13,292)
From net realized
gains from
investment
transactions........ -- -- -- -- -- -- (32) --
---------- ---------- -------- ---------- -------- -------- -------- ----------
Change in net assets
from shareholder
distributions........ (21,133) (42,020) (9,499) (20,287) (2,610) (4,686) (12,450) (19,396)
---------- ---------- -------- ---------- -------- -------- -------- ----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued.............. 1,084,651 1,684,473 467,442 1,128,455 273,682 407,038 850,660 1,723,599
Dividends reinvested. 4,763 8,193 734 1,537 484 824 282 627
Cost of shares
redeemed............ (1,087,782) (1,563,855) (523,933) (1,102,140) (246,672) (399,351) (870,662) (1,606,028)
---------- ---------- -------- ---------- -------- -------- -------- ----------
Change in net assets
from capital
transactions......... 1,632 128,811 (55,757) 27,852 27,494 8,511 (19,720) 118,198
---------- ---------- -------- ---------- -------- -------- -------- ----------
Change in net assets.. 1,634 128,817 (55,714) 27,849 27,494 8,483 (19,746) 118,244
NET ASSETS:
Beginning of period.. 872,370 743,553 422,244 394,395 156,350 147,867 500,383 382,139
---------- ---------- -------- ---------- -------- -------- -------- ----------
End of period........ $ 874,004 $ 872,370 $366,530 $ 422,244 $183,844 $156,350 $480,637 $ 500,383
========== ========== ======== ========== ======== ======== ======== ==========
</TABLE>
- -------
(a) Commencement of operations for the Prime Obligations Fund was September 26,
1997.
See notes to financial statements.
44
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
---------------------- ---------------------- ---------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997 1997 1997
------------ --------- ------------ --------- ------------ --------- ------------ ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ (4,568) $ (7,542) $ (2,809) $ (5,674) $ (219) $ 622 $ (1,419) $ (577)
Net realized gains
(losses) from
investment and foreign
currency transactions. 49,010 47,197 85,371 90,985 23,866 16,112 10,047 12,746
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (59,162) (53,844) (23,104) (46,690) 7,260 75,519 (48,166) 55,463
--------- --------- --------- --------- -------- --------- -------- ---------
Change in net assets
resulting from
operations............. (14,720) (14,189) 59,458 38,621 30,907 92,253 (39,538) 67,632
--------- --------- --------- --------- -------- --------- -------- ---------
DISTRIBUTIONS TO INVESTOR
A SHAREHOLDERS:
From net investment
income................ -- -- -- -- -- (4) -- --
From net realized gains
from investment and
foreign currency
transactions.......... (8,917) (25,439) (15,794) (23,501) (1,922) (19) (1,516) --
DISTRIBUTIONS TO INVESTOR
B SHAREHOLDERS:
From net realized gains
from investment and
foreign currency
transactions.......... (2,324) (5,903) (4,492) (5,643) (708) (12) (442) --
DISTRIBUTIONS TO INVESTOR
C SHAREHOLDERS:
From net realized gains
from investment and
foreign currency
transactions.......... (759) (1,578) (409) (458) (14) -- (32) --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ -- -- -- -- -- (728) -- --
In excess of net
investment income..... -- -- -- -- -- -- -- (108)
From net realized gains
from investment and
foreign currency
transactions.......... (27,708) (78,723) (97,196) (167,629) (36,001) (2,346) (13,139) --
--------- --------- --------- --------- -------- --------- -------- ---------
Change in net assets
from shareholder
distributions.......... (39,708) (111,643) (117,891) (197,231) (38,645) (3,109) (15,129) (108)
--------- --------- --------- --------- -------- --------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 473,828 1,051,669 192,415 344,245 51,596 151,936 45,868 188,198
Dividends reinvested... 31,608 85,417 87,033 140,424 26,512 2,462 9,533 62
Cost of shares
redeemed.............. (466,416) (909,908) (241,320) (411,014) (84,841) (165,363) (42,814) (180,358)
--------- --------- --------- --------- -------- --------- -------- ---------
Change in net assets
from share
transactions........... 39,020 227,178 38,128 73,655 (6,733) (10,965) 12,587 7,902
--------- --------- --------- --------- -------- --------- -------- ---------
Change in net assets.... (15,408) 101,346 (20,305) (84,955) (14,471) 78,179 (42,080) 75,426
NET ASSETS:
Beginning of period.... 853,289 751,943 648,728 733,683 354,820 276,641 489,059 413,633
--------- --------- --------- --------- -------- --------- -------- ---------
End of period.......... $ 837,881 $ 853,289 $ 628,423 $ 648,728 $340,349 $ 354,820 $446,979 $ 489,059
========= ========= ========= ========= ======== ========= ======== =========
</TABLE>
See notes to financial statements.
45
<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
--------------------- --------------------- --------------------- ----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997 1997 1997
------------ -------- ------------ -------- ------------ -------- ------------ ---------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ 5,031 $ 9,196 $ 5,772 $ 12,905 $ 9,000 $ 16,601 $ 16,046 $ 33,325
Net realized gains
(losses) from
investment
transactions.......... 45 (256) 2,109 1,200 380 (2,156) 12,413 5,014
Net change in
unrealized
appreciation
(depreciation) from
investments........... 224 467 1,003 (461) 2,371 (99) 2,833 4,705
-------- -------- -------- -------- -------- -------- -------- ---------
Change in net assets
resulting from
operations............. 5,300 9,407 8,884 13,644 11,751 14,346 31,292 43,044
-------- -------- -------- -------- -------- -------- -------- ---------
DISTRIBUTIONS TO INVESTOR
A SHAREHOLDERS:
From net investment
income................ (867) (1,142) (513) (1,130) (2,213) (3,562) (624) (1,195)
Tax return of capital.. -- (6) -- -- -- (661) -- --
DISTRIBUTIONS TO INVESTOR
B SHAREHOLDERS:
From net investment
income................ (36) (78) (53) (90) (814) (1,259) (175) (256)
Tax return of capital.. -- -- -- -- -- (233) -- --
DISTRIBUTIONS TO INVESTOR
C SHAREHOLDERS:
From net investment
income................ (23) (1) (6) (7) (3) (4) (15) (17)
Tax return of capital.. -- -- -- -- -- (1) -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (4,289) (8,051) (5,751) (11,898) (6,014) (9,151) (16,776) (31,847)
Tax return of capital.. -- (29) -- -- -- (1,697) -- --
-------- -------- -------- -------- -------- -------- -------- ---------
Change in net assets
from shareholder
distributions.......... (5,215) (9,307) (6,323) (13,125) (9,044) (16,568) (17,590) (33,315)
-------- -------- -------- -------- -------- -------- -------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 61,732 67,317 13,214 28,502 39,485 72,865 50,610 99,111
Dividends reinvested... 2,300 4,250 1,890 3,965 2,449 4,289 11,998 23,608
Cost of shares
redeemed.............. (39,458) (59,256) (34,087) (74,602) (31,151) (46,463) (75,614) (188,258)
-------- -------- -------- -------- -------- -------- -------- ---------
Change in net assets
from share
transactions........... 24,574 12,311 (18,983) (42,135) 10,783 30,691 (13,006) (65,539)
-------- -------- -------- -------- -------- -------- -------- ---------
Change in net assets.... 24,659 12,411 (16,422) (41,616) 13,490 28,469 696 (55,810)
NET ASSETS:
Beginning of period.... 165,040 152,629 208,574 250,190 230,960 202,491 518,337 574,147
-------- -------- -------- -------- -------- -------- -------- ---------
End of period.......... $189,699 $165,040 $192,152 $208,574 $244,450 $230,960 $519,033 $ 518,337
======== ======== ======== ======== ======== ======== ======== =========
</TABLE>
See notes to financial statements.
46
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND FUND
--------------------- --------------------- ------------------------- ---------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS DECEMBER 30, SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED 1996 TO ENDED ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1997 1997 1997 1997 1997 1997(A) 1997 1997
------------ -------- ------------ -------- ------------ ------------ ------------ --------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ 2,821 $ 6,295 $ 5,399 $ 10,862 $ 260 $ 139 $ 3,584 $ 5,337
Net realized gains
(losses) from
investment and foreign
currency transactions. 1,771 798 826 370 167 (102) 5,072 12,043
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 1,505 950 5,057 2,487 274 335 3,802 5,097
-------- -------- -------- -------- ------- ------- -------- --------
Change in net assets
resulting from
operations............. 6,097 8,043 11,282 13,719 701 372 12,458 22,477
-------- -------- -------- -------- ------- ------- -------- --------
DISTRIBUTIONS TO INVESTOR
A SHAREHOLDERS:
From net investment
income................ (215) (344) (956) (1,596) -- -- (270) (454)
From net realized gains
from investment and
foreign currency
transactions.......... (172) (42) (112) (125) -- -- (504) (1,957)
DISTRIBUTIONS TO INVESTOR
B SHAREHOLDERS:
From net investment
income................ (15) (28) (73) (118) -- -- (69) (90)
From net realized gains
from investment and
foreign currency
transactions.......... (13) (5) (11) (11) -- -- (192) (547)
DISTRIBUTIONS TO INVESTOR
C SHAREHOLDERS:
From net investment
income................ -- -- -- -- -- -- (9) (10)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- -- -- (26) (56)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (3,065) (5,598) (5,170) (8,576) (283) (122) (3,891) (4,750)
From net realized gains
from investment and
foreign currency
transactions.......... (2,220) (635) (561) (626) (98) -- (6,806) (13,278)
-------- -------- -------- -------- ------- ------- -------- --------
Change in net assets
from shareholder
distributions.......... (5,700) (6,652) (6,883) (11,052) (381) (122) (11,767) (21,142)
-------- -------- -------- -------- ------- ------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 8,905 30,200 30,511 43,600 7,942 11,873 39,708 167,477
Dividends reinvested... 679 686 1,668 2,460 379 122 10,666 17,657
Cost of shares
redeemed.............. (15,015) (28,261) (19,423) (37,409) (2,728) (1,958) (37,657) (50,433)
-------- -------- -------- -------- ------- ------- -------- --------
Change in net assets
from share
transactions........... (5,431) 2,625 12,756 8,651 5,593 10,037 12,717 134,701
-------- -------- -------- -------- ------- ------- -------- --------
Change in net assets.... (5,034) 4,016 17,155 11,318 5,913 10,287 13,408 136,036
NET ASSETS:
Beginning of period.... 145,113 141,097 236,755 225,437 10,287 -- 271,266 135,230
-------- -------- -------- -------- ------- ------- -------- --------
End of period.......... $140,079 $145,113 $253,910 $236,755 $16,200 $10,287 $284,674 $271,266
======== ======== ======== ======== ======= ======= ======== ========
</TABLE>
- -------
(a) Period from commencement of operations.
See notes to financial statements.
47
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE EQUITY EMERGING
ALLOCATION INCOME MARKETS
FUND FUND FUND
------------------------- ---------------------- ------------
SIX MONTHS DECEMBER 30, SIX MONTHS YEAR DECEMBER 29,
ENDED 1996 TO ENDED ENDED 1997 TO
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30, DECEMBER 31,
1997 1997(A) 1997 1997 1997(B)
------------ ------------ ------------ --------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income
(loss)................ $ 256 $ 232 $ 3,497 $ 7,779 --
Net realized gains
(losses) from invest-
ment and foreign cur-
rency transactions.... 60 (648) 45,452 49,802 --
Net change in
unrealized apprecia-
tion (depreciation)
from investments and
translation of assets
and liabilities in
foreign currencies.... 1,069 2,394 (13,492) 38,267 --
------- ------- -------- --------- ----
Change in net assets re-
sulting from opera-
tions.................. 1,385 1,978 35,457 95,848 --
------- ------- -------- --------- ----
DISTRIBUTIONS TO IN-
VESTOR A SHAREHOLDERS:
From net investment in-
come.................. -- -- (707) (1,408) --
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (15,973) (8,386) --
DISTRIBUTIONS TO IN-
VESTOR B SHAREHOLDERS:
From net investment in-
come.................. -- -- -- (150) --
In excess of net in-
vestment income....... -- -- (83) -- --
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (3,858) (1,419) --
DISTRIBUTIONS TO IN-
VESTOR C SHAREHOLDERS:
From net investment in-
come.................. -- -- (3) (4) --
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (116) (25) --
DISTRIBUTIONS TO INSTI-
TUTIONAL SHAREHOLDERS:
From net investment in-
come.................. (275) (195) (2,571) (6,142) --
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (48,180) (32,123) --
------- ------- -------- --------- ----
Change in net assets
from shareholder dis-
tributions............. (275) (195) (71,491) (49,657) --
------- ------- -------- --------- ----
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 6,813 39,922 19,645 78,441 10
Dividends reinvested... 275 195 30,499 18,619 --
Cost of shares re-
deemed................ (7,298) (2,857) (48,098) (138,602) --
------- ------- -------- --------- ----
Change in net assets
from share transac-
tions.................. (210) 37,260 2,046 (41,542) 10
------- ------- -------- --------- ----
Change in net assets.... 900 39,043 (33,988) 4,649 10
NET ASSETS:
Beginning of period.... 39,043 -- 437,117 432,468 --
------- ------- -------- --------- ----
End of period.......... $39,943 $39,043 $403,129 $ 437,117 $ 10
======= ======= ======== ========= ====
</TABLE>
- -------
(a) Period from commencement of operations.
(b) Period from commencement of operations. Due to the short period in
operation, figures were below the thousand dollar threshold.
See notes to financial statements.
48
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER (83.7%):
Automotive (7.1%):
$ 2,100 Daimler Benz, 5.55%, 1/29/98........................... $ 2,091
5,000 Daimler Benz, 5.59%, 3/24/98........................... 4,936
5,000 Daimler Benz, 5.72%, 4/9/98............................ 4,922
5,800 Denso International America, 5.60%, 1/9/98............. 5,793
5,000 Eaton, 5.53%, 3/26/98.................................. 4,935
5,000 Ford Credit Europe, 5.60%, 2/5/98...................... 4,973
5,000 Ford Motor Credit, 5.72%, 3/5/98....................... 4,950
5,000 General Motor Acceptance Corp., 5.57%, 3/18/98......... 4,941
5,000 General Motor Acceptance Corp., 5.56%, 3/27/98......... 4,934
5,000 Paccar, 6.00%, 1/28/98................................. 4,978
5,000 Paccar, 5.56%, 2/10/98................................. 4,969
5,000 PHH, 5.70%, 3/4/98..................................... 4,951
4,600 PHH, 5.71%, 3/27/98.................................... 4,538
-----------
61,911
-----------
Banking (2.8%):
5,000 ANZ Delaware, 5.55%, 2/20/98........................... 4,961
5,000 Bank of America, 5.53%, 1/21/98........................ 4,985
5,000 First Chicago Financial, 5.60%,
1/21/98............................................... 4,984
5,000 First Chicago Financial, 5.55%,
3/17/98............................................... 4,942
5,000 First Chicago Financial, 5.68%,
4/22/98............................................... 4,913
-----------
24,785
-----------
Banking & Financial Services (3.4%):
5,000 ABN Amro, 5.72%, 3/10/98............................... 4,946
5,000 ABN Amro, 5.55%, 4/16/98............................... 4,919
5,000 Bbl North America, 5.55%, 1/5/98....................... 4,997
5,000 Bil North America, 5.63%, 1/12/98...................... 4,991
5,000 Bil North America, 5.74%, 3/10/98...................... 4,946
5,000 Bil North America, 5.72%, 3/13/98...................... 4,944
-----------
29,743
-----------
Beverages--Wine/Spirits (0.6%):
5,000 Guiness PLC, 5.68%, 2/24/98............................ 4,957
-----------
Chemicals (2.3%):
5,000 Abbott Labs, 6.15%, 1/8/98............................. 4,994
5,000 Akzo Nobel, 5.71%, 12/11/97............................ 4,918
5,000 Henkel KGAA, 5.52%, 1/21/98............................ 4,985
5,000 Monsanto, 5.54%, 1/7/98................................ 4,995
-----------
19,892
-----------
COMMERCIAL PAPER, CONTINUED:
Construction (1.1%):
5,000 Cemex, 5.64%, 2/11/98.................................. 4,968
5,000 Cemex, 5.71%, 2/18/98.................................. 4,962
-----------
9,930
-----------
Diversified Operation (0.8%):
2,000 BTR Dunlop, 6.05%, 1/29/98............................. 1,991
5,000 BTR Dunlop, 5.68%, 2/19/98............................. 4,961
-----------
6,952
-----------
Education (2.0%):
5,000 Columbia University, 5.70%, 2/25/98.................... 4,956
5,000 Columbia University, 5.72%, 3/18/98.................... 4,940
5,000 Stanford University, 5.55%, 3/3/98..................... 4,953
3,000 Stanford University, 5.63%, 5/11/98.................... 2,939
-----------
17,788
-----------
Electrical & Electronic (0.6%):
5,000 Avnet, 5.75%, 2/4/98................................... 4,973
-----------
Engineering (0.6%):
5,000 Fluor, 6.07%, 1/30/98.................................. 4,976
-----------
Financial Services (23.1%):
5,000 ABB Treasury, 5.60%, 1/21/98........................... 4,984
5,000 Abbey National, 5.54%, 3/17/98......................... 4,942
5,000 Abbey National, 5.59%, 1/22/98......................... 4,984
5,000 Abbey National, 5.55%, 2/25/98......................... 4,958
10,000 American Express, 6.00%, 1/13/98....................... 9,981
5,000 Associates Corp., 5.71%, 12/17/97...................... 4,941
5,000 Associates Corp., 5.55%, 1/21/98....................... 4,985
5,000 Associates Corp., 5.60%, 1/23/98....................... 4,983
5,000 Associates Corp., 5.73%, 3/20/98....................... 4,938
5,000 Avco Financial, 5.70%, 3/5/98.......................... 4,950
5,000 Cargill Financial Services, 5.56%,
2/9/98................................................ 4,970
5,000 Cargill Global Funding, 5.57%, 2/23/98................. 4,959
5,000 Cargill Global Funding, 5.54%, 3/25/98................. 4,936
5,000 Cargill Global Funding, 5.65%, 4/28/98................. 4,908
5,000 Cregem N.A., 5.56%, 1/29/98............................ 4,978
5,000 Cregem N.A., 5.55%, 2/23/98............................ 4,959
5,000 Franklin Resources, 5.60%, 2/3/98...................... 4,974
5,000 Franklin Resources, 5.70%, 2/25/98..................... 4,956
5,000 GE Capital, 5.60%, 1/8/98.............................. 4,995
5,000 GE Capital, 5.54%, 1/12/98............................. 4,992
5,000 GE Capital, 5.54%, 2/11/98............................. 4,968
5,000 GE Capital, 5.55%, 2/19/98............................. 4,962
5,000 GE Capital, 5.64%, 5/18/98............................. 4,893
5,000 Goldman Sachs Group, 5.65%, 5/7/98..................... 4,901
5,000 Goldman Sachs Group, 5.70%, 5/13/98.................... 4,896
5,000 Goldman Sachs Group, 5.65%, 5/20/98.................... 4,891
5,000 International Lease, 5.54%, 1/7/98..................... 4,995
</TABLE>
Continued
49
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, continued:
$ 5,000 Island Finance, 5.57%, 1/14/98......................... $ 4,990
5,000 Island Finance, 5.60%, 1/29/98......................... 4,978
5,000 JP Morgan, 5.66%, 5/13/98.............................. 4,896
5,000 Merrill Lynch, 5.54%, 2/18/98.......................... 4,963
5,000 Merrill Lynch, 5.57%, 3/2/98........................... 4,954
5,000 Merrill Lynch, 5.59% 4/6/98............................ 4,926
5,000 Merrill Lynch, 5.65%, 6/3/98........................... 4,880
5,000 Morgan Stanley, 5.64%, 6/17/98......................... 4,869
5,000 Novartis Finance, 5.92%, 1/29/98....................... 4,977
5,000 Pemex, 5.78%, 2/18/98.................................. 4,961
5,000 Pemex, 5.73%, 3/19/98.................................. 4,939
5,000 Teco Finance, 5.82%, 2/3/98............................ 4,973
5,000 Westpac Capital Corp, 5.64%, 4/22/98................... 4,913
-----------
202,998
-----------
Food Products & Services (0.3%):
2,750 AH Robins, 5.62%, 2/12/98.............................. 2,732
-----------
Foreign Banking & Financial Services (17.2%):
5,000 Bank of Australia, 5.53%, 1/9/98....................... 4,992
5,000 Bank of Austria, 5.72%, 3/17/98........................ 4,940
5,000 Bank of Nova Scotia, 5.55%, 1/26/98.................... 4,981
5,000 Banque Generale Du, 5.70%, 2/25/98..................... 4,956
5,000 Commonwealth Bank of Australia, 5.52%, 2/2/98.......... 4,975
5,000 Commonwealth Bank of Australia, 5.73%, 3/24/98......... 4,935
5,000 Commonwealth Bank of Australia, 5.53%, 4/1/98.......... 4,931
5,000 Credit Suisse, 5.71%, 12/5/97.......................... 4,951
5,000 Credit Suisse, 5.69%, 2/18/98.......................... 4,962
5,000 Den Danske Bank, 5.54%, 2/5/98......................... 4,973
5,000 Den Danske Bank, 5.56%, 3/9/98......................... 4,948
5,000 Deutsche Bank, 5.59%, 4/17/98.......................... 4,918
5,000 Generale Bank, 5.61%, 1/22/98.......................... 4,984
5,000 Generale Bank, 5.72%, 3/18/98.......................... 4,940
5,000 International Nederladen, 5.68%, 2/19/98............... 4,961
5,000 International Nederladen, 5.69%, 3/20/98............... 4,938
5,000 International Nederladen, 5.65%, 6/4/98................ 4,879
5,000 Kredietbank N.A., 5.56%, 1/12/98....................... 4,992
5,000 Kredietbank N.A., 5.53%, 1/22/98....................... 4,984
5,000 Lloyds Bank PLC, 5.51%, 1/12/98........................ 4,992
5,000 Lloyds Bank PLC, 5.54%, 3/3/98......................... 4,953
5,000 National Australia Funding, 5.72%, 3/9/98.............. 4,947
5,000 Nordbanken, 5.57%, 2/9/98.............................. 4,970
2,000 Oes Kontrollbank, 5.87%, 2/5/98........................ 1,989
5,000 Rabobank, 5.53%, 4/1/98................................ 4,931
5,000 Rabobank, 5.55% 4/14/98................................ 4,921
5,000 Societe Generale, 5.49%, 4/6/98........................ 4,928
COMMERCIAL PAPER, CONTINUED:
Foreign Banking & Financial Services, continued:
5,000 Svenska Handlesbanken, 5.51%, 4,991
1/12/98................................................
5,000 Svenska Handlesbanken, 5.48%,
1/26/98................................................ 4,981
5,000 Svenska Handlesbanken, 5.49%,
2/2/98................................................. 4,976
5,000 Swedish Export Credit, 5.70%, 3/3/98................... 4,952
-----------
150,671
-----------
Foreign Governments (0.6%):
5,000 Province of Quebec, 5.54%, 3/10/98..................... 4,948
-----------
Forest & Paper Products (1.1%):
10,000 Kimberly-Clark, 6.20%, 1/9/98.......................... 9,986
-----------
Health Care - Services (0.8%):
2,500 Holy Cross Health System, 5.90%,
2/9/98................................................. 2,484
5,000 Holy Cross Health System, 5.80%, 3/23/98............... 4,935
-----------
7,419
-----------
Housewares (1.7%):
5,000 Guardian Industries, 5.60%, 1/28/98.................... 4,979
5,000 Guardian Industries, 5.72%, 2/20/98.................... 4,960
5,000 Guardian Industries, 5.70%, 2/27/98.................... 4,955
-----------
14,894
-----------
Industrial Goods & Services (0.6%):
5,000 Hitachi America, 5.51% 1/27/98, Cp..................... 4,980
-----------
Insurance (2.3%):
5,000 Allianz of America, 5.62%, 1/21/98..................... 4,984
5,000 Allianz of America, 5.60%, 1/26/98..................... 4,981
5,000 American Family Financial, 5.90%, 1/28/98.............. 4,978
5,000 New York Life, 5.85%, 2/2/98........................... 4,974
-----------
19,917
-----------
Machinery & Equipment (1.6%):
5,000 Caterpillar Financial, 5.54%, 1/7/98................... 4,996
4,170 Caterpillar Financial, 5.70%, 3/27/98.................. 4,114
5,000 Caterpillar Financial, 5.52%, 4/28/98.................. 4,910
-----------
14,020
-----------
Manufacturing - Consumer Goods (0.6%):
5,000 Pacific Dunlop Ltd, 5.73%, 3/3/98...................... 4,951
-----------
</TABLE>
Continued
50
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Prime Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------- -----------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Metals & Mining (1.7%):
$ 5,000 RTZ America, 5.53%, 1/14/98............................ $ 4,991
5,000 RTZ America, 5.56%, 2/11/98............................ 4,968
5,000 RTZ America, 5.52%, 3/20/98............................ 4,940
-----------
14,899
-----------
Office Equipment & Services (0.6%):
5,000 Rank Xerox, 5.80%, 2/5/98.............................. 4,972
-----------
Oil & Exploration, Production & Services (3.7%):
5,000 Colonial Pipeline, 5.63%, 4/22/98...................... 4,913
4,250 Colonial Pipeline, 5.55%, 4/3/98....................... 4,190
3,000 Colonial Pipeline, 5.65%, 5/18/98...................... 2,935
5,000 Deer Park Refining, 5.70%, 1/15/98..................... 5,000
5,000 Explorer Pipeline, 5.62%, 1/22/98...................... 4,984
5,000 Explorer Pipeline, 5.72%, 2/20/98...................... 4,960
5,000 Petro Bras, 5.70%, 3/31/98............................. 4,930
-----------
31,912
-----------
Pharmaceuticals (1.7%):
5,000 American Homes Products, 5.54%,
1/14/98............................................... 4,990
5,000 Glaxo Welcome, 5.54%, 1/8/98........................... 4,995
5,000 Glaxo Welcome, 5.54%, 1/20/98.......................... 4,985
-----------
14,970
-----------
Telecommunications (0.6%):
5,000 Bell Atlantic, 6.00%, 1/29/98.......................... 4,977
-----------
Utilities (4.2%):
5,000 Michigan Consolidated Gas, 5.56%, 1/28/98.............. 4,979
5,000 Michigan Consolidated Gas, 5.60%, 2/4/98............... 4,974
5,000 National Rural Utilities, 5.52%, 1/13/98............... 4,991
5,000 National Rural Utilities, 5.66%, 3/18/98............... 4,940
5,000 Southern Calfornia Gas, 5.55%, 3/9/98.................. 4,948
5,000 Southern Co., 5.72%, 3/9/98............................ 4,947
7,000 Vattenfall Treasury, 5.72%, 3/30/98.................... 6,902
-----------
36,681
-----------
Total Commercial Paper 731,834
-----------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------ -----------
<C> <S> <C>
CORPORATE BONDS (6.3%):
Banking (1.1%):
$ 5,000 Absit 97-C Goldman Sachs, 5.98%, 6/15/98.............. $ 5,000
5,000 Comercia Bank, 5.64%*, 6/10/98 ....................... 4,999
-----------
9,999
-----------
Financial & Insurance (1.1%):
5,000 SMM Trust, 5.91%*, 3/23/98............................ 5,000
5,000 SMM Trust 1997-I, 6.00%*, 5/29/98..................... 5,000
-----------
10,000
-----------
Financial Services (3.0%):
5,000 Bear Stearns, 5.84%*, 6/16/98......................... 5,000
5,000 Bear Stearns, 6.01%*, 11/12/98........................ 5,000
5,000 Comerica, 5.97%*, 10/21/98............................ 4,998
5,000 Travelers Funding, 5.96%*, 3/26/98.................... 5,000
5,000 Travelers Funding Agreement, 5.90%*, 8/17/98......... 5,000
-----------
24,998
-----------
Insurance (1.1%):
10,000 Allstate Funding, 5.97%, 4/1/98....................... 10,000
-----------
Total Corporate Bonds 54,997
-----------
U.S. GOVERNMENT AGENCIES (0.6%):
Student Loan Marketing Assoc. (0.6%):
5,000 5.47%*, 11/10/98...................................... 4,993
-----------
Total U.S. Government Agencies 4,993
-----------
REPURCHASE AGREEMENTS (9.8%):
60,333 Goldman Sachs, 6.80%, 1/2/98, (Collateralized by
$63,967 various U.S. Government securities 6.00%-
6.92%, 1/25/24-2/15/27, market value-- $61,540)....... 60,333
25,000 Morgan Stanley, 6.85%, 1/2/98, (Collateralized by
$26,300 various corporate bonds, 0.00%-7.50%, 4/15/01-
8/15/03, market value--$26,586)....................... 25,000
-----------
Total Repurchase Agreements 85,333
-----------
Total (Cost--$877,157)(a) $ 877,157
===========
</TABLE>
- -------
Percentages indicated are based on net assets of $874,004.
* 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 an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
December 31, 1997.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
51
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ----------------------------------------------------- ---------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (67.9%):
Federal Farm Credit Bank (6.8%):
$ 5,000 5.37%, 1/16/98....................................... $ 4,989
5,000 0.00%, 1/30/98....................................... 4,977
5,000 5.90%, 6/2/98........................................ 5,003
5,000 5.52%*, 7/1/98....................................... 4,998
5,000 5.75%, 9/11/98....................................... 4,998
--------
24,965
--------
Federal Home Loan Bank (19.5%):
5,000 5.55%, 1/2/98........................................ 5,000
7,535 5.65%, 1/7/98........................................ 7,535
5,000 5.39%, 1/8/98........................................ 4,995
4,125 5.36%, 1/9/98........................................ 4,120
5,000 5.35%, 1/14/98....................................... 4,990
10,000 5.39%, 2/6/98........................................ 9,946
5,000 5.42%, 2/11/98....................................... 4,969
5,000 5.41%, 2/17/98....................................... 4,965
5,000 0.00%, 2/18/98....................................... 4,962
5,000 5.42%, 2/20/98....................................... 4,962
5,000 5.43%, 3/5/98........................................ 4,952
5,000 5.44%, 3/11/98....................................... 4,948
5,000 5.75%*, 10/20/98..................................... 4,999
--------
71,343
--------
Federal Home Loan Mortgage Corp. (8.0%):
5,000 5.65%, 1/23/98....................................... 4,983
5,000 5.78%, 1/26/98....................................... 4,980
5,000 5.75%, 1/27/98....................................... 4,979
5,000 5.58%, 3/5/98........................................ 4,951
5,000 5.58%*, 4/15/98...................................... 4,999
4,560 5.57%, 6/5/98........................................ 4,451
--------
29,343
--------
Federal National Mortgage Assoc. (25.4%):
5,585 5.38%, 1/6/98........................................ 5,581
5,000 5.47%, 1/16/98....................................... 4,989
5,000 0.00%, 1/26/98....................................... 4,980
5,000 5.48%, 1/29/98....................................... 4,979
5,000 5.52%, 2/20/98....................................... 4,962
5,705 5.07%, 2/23/98....................................... 5,699
10,000 0.00%*, 3/12/98...................................... 9,892
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES, CONTINUED:
Federal National Mortgage Assoc., continued:
$ 5,000 5.53%, 3/25/98.......................................... $ 4,936
5,000 5.79%, 3/25/98.......................................... 5,000
5,000 5.60%, 3/27/98.......................................... 4,934
5,000 5.80%, 3/30/98.......................................... 4,932
5,000 5.47%, 4/9/98........................................... 4,926
5,000 5.55%, 4/15/98.......................................... 4,920
10,000 5.51%, 4/24/98.......................................... 9,827
5,000 5.46%, 5/11/98.......................................... 4,901
5,000 5.48%, 5/20/98.......................................... 4,894
2,395 5.96%, 5/21/98.......................................... 2,396
--------
92,748
--------
Student Loan Marketing Assoc. (8.2%):
10,250 5.42%*, 1/21/98......................................... 10,251
5,000 5.60%, 8/11/98.......................................... 4,993
5,000 5.77%*, 11/4/98......................................... 4,998
10,000 5.47%*, 11/10/98........................................ 9,991
--------
30,233
--------
Total U.S. Government Agencies 248,632
--------
REPURCHASE AGREEMENTS (32.2%):
68,092 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $71,053
various U.S. Government securities, 6.30-6.66%, 9/15/23-
11/15/27, market value--$69,454)........................ 68,092
25,000 Greenwich Capital, 6.10%, 7/1/97 (Collateralized by
$29,559 various U.S. Government securities, 6.50-7.00%,
7/1/11, market value $25,500)........................... 25,000
25,000 HSBC Securities, Inc., 6.80%, 1/2/98 (collateralized by
$24,475 Federal National Mortgage Assoc., 6.30%,
12/3/01, market value--$25,504)......................... 25,000
--------
Total Repurchase Agreements 118,092
--------
Total (Cost--$366,724)(a) $366,724
========
</TABLE>
- -------
Percentages indicated are based on net assets of $366,530.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on December 31, 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 December 31, 1997
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (5.5%):
Delaware (5.0%):
$ 3,300 Economic Development Authority Revenue, Delmarva Power &
Light Project, 4.00%*, 10/1/17**....................... $ 3,300
4,575 Economic Development Authority Revenue, Delmarva Power &
Light Project, 4.00%*, 10/1/29**....................... 4,575
1,200 Economic Development Authority Revenue, Delmarva Power &
Light Project, Series A, 4.00%*, 10/1/17**............. 1,200
--------
9,075
--------
Michigan (0.5%):
1,000 Wayne Charter County, Airport Revenue, 3.85%*,
12/1/16**.............................................. 1,000
--------
Total Alternative Minimum Tax Paper 10,075
--------
GOVERNMENT BACKED MUNICIPAL BONDS (2.5%):
Arizona (0.6%):
1,000 Phoenix, Highway User Revenue, 6.90%, 7/1/98,
Prerefunded 7/1/98 @ 102............................... 1,031
--------
Michigan (1.3%):
2,500 Royal Oak, Hospital Financial Authority, William
Beaumont Hospital, 7.38%, 1/1/20, Prerefunded 1/1/99 @
102.................................................... 2,634
--------
Missouri (0.6%):
1,000 Kansas City, School District Building, 7.90%, 2/1/08,
Prerefunded 2/1/98 @ 102............................... 1,023
--------
Total Government Backed Municipal Bonds 4,688
--------
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER (91.5%):
Arizona (0.7%):
1,250 Pima County, 6.10%, 7/1/98.............................. 1,264
--------
Colorado (4.4%):
1,000 Denver City & County, Refunding Bonds, 5.60%, 8/1/98.... 1,010
2,900 Platte, 3.75%, 3/5/98................................... 2,900
1,000 Platte River, 3.70%, 2/18/98............................ 1,000
3,200 Platte River, 3.85%, 1/22/98............................ 3,200
--------
8,110
--------
Delaware (2.6%):
2,600 Economic Development Authority Revenue, Hospital Revenue
Bond - Series B, 4.25%*, 12/1/15**..................... 2,600
2,165 State, G.O., Series A, 4.25%, 3/1/98.................... 2,167
--------
4,767
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Georgia (2.7%):
$ 1,400 Burke County, PCR, Development Authority, Refunding
Bonds,
3.80%, 5/28/98......................................... $ 1,400
2,000 Municipal Gas Authority, Natural Gas Revenue, Southern
Portfolio I Project, 3.65%*, 2/9/98** ................. 2,000
1,585 Municipal Gas Authority, Natural Gas Revenue, Southern
Portfolio I Project, 3.65%*, 2/18/98** ................ 1,585
--------
4,985
--------
Kansas (7.8%):
2,900 Burlington, PCR, Kansas City Power & Light, Refunding
Bonds, Series A,
3.65%, 2/5/98 ......................................... 2,900
5,000 Burlington, PCR, Kansas City Power & Light, Refunding
Bonds, Series A,
3.65%, 11/15/98 ....................................... 5,000
2,200 Burlington, PCR, Kansas City Power, Refunding Bonds,
3.80%*, 1/21/98** ..................................... 2,200
1,300 Burlington, PCR, Kansas City Power, Refunding Bonds,
3.80%*, 1/21/98** ..................................... 1,300
3,000 State Department of Transportation, Highway Revenue,
Series B,
3.75%*, 9/1/14**....................................... 3,000
--------
14,400
--------
Kentucky (3.5%):
6,400 Lexington-Fayette, Urban County Airport, 3.90%*,
4/1/24**............................................... 6,400
--------
Louisiana (1.8%):
1,300 De Soto Parish, PCR, Central Louisana Electric Co.,
Refunding Bonds, Series A, 3.85%*, 7/1/18**............ 1,300
2,000 E Baton Rouge, 3.85%, 10/1/27**......................... 2,006
--------
3,306
--------
Maryland (1.6%):
3,000 Montgomery County, 3.70%, 1/26/98....................... 3,000
--------
Michigan (6.8%):
3,900 Housing Development Authority,
3.80%*, 10/1/07**...................................... 3,900
2,000 Municipal Bond Authority, 4.50%, 7/2/98................. 2,006
200 North Muskegon, Public School District, G.O., 7.00%,
5/1/98................................................. 202
</TABLE>
Continued
53
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Michigan, continued:
$ 1,000 Royal Oak, Hospital Financial Authority Revenue, G.O.,
3.65%*, 1/1/03**....................................... $ 1,000
300 Strategic Fund, 3.85%, 9/1/30........................... 300
2,300 University of Michigan, Hospital Revenue, Series A,
3.90%*, 12/1/19**...................................... 2,300
2,800 University of Michigan, Hospital Revenue, Series A,
3.90%*, 12/1/27**...................................... 2,800
--------
12,508
--------
Minnesota (2.6%):
3,710 Rochester, Health Care Facilities Revenue, Mayo
Foundation, Series E,
4.70%*, 1/14/98**...................................... 3,710
1,000 State, Refunding Bonds, 6.60%, 8/1/99................... 1,016
--------
4,726
--------
North Carolina (4.2%):
1,500 Eastern Municipal Power Authority,
3.80%, 2/5/98.......................................... 1,500
5,000 Eastern Municipal Power Authority,
3.75%, 3/10/98......................................... 5,000
1,300 Eastern Municipal Power, Agency Power System Revenue,
Series B,
3.70%*, 3/10/98**...................................... 1,300
--------
7,800
--------
Ohio (1.1%):
2,000 Air Quality Development Authority Revenue, 3.80%*,
3/1/18**................................................ 2,000
--------
Pennsylvania (7.9%):
2,500 Allegheny County, IDR, 3.85%*, 10/21/98**............... 2,500
1,000 College Township, IDR,
3.85%*, 11/1/11** ...................................... 1,000
6,120 Montgomery County, 3.75%, 2/11/98....................... 6,120
4,900 State, 3.65%, 2/12/98................................... 4,900
--------
14,520
--------
South Dakota (1.1%):
2,000 Ed Lns Inc., Hospital Revenue,
3.85%, 8/1/02.......................................... 2,000
--------
Texas (13.4%):
2,300 Harris County, Health Facilities Development Corp.,
Hospital Revenue, Refunding Bonds, 3.85%*, 2/1/26** ... 2,300
2,100 Harris County, IDR, 4.80%*, 3/1/24...................... 2,100
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Texas, continued:
$ 6,200 Harris County, Texas Health Facilities Authority,
Methodist Hospital,
3.85%*, 12/1/25........................................ $ 6,201
2,000 Houston, 3.75%, 1/28/98................................. 2,000
4,100 Houston, 3.75%, 3/24/98................................. 4,100
5,000 San Antonio, 3.75%, 2/10/98............................. 5,000
2,000 San Antonio, 3.65%, 2/11/98............................. 2,000
1,000 San Antonio, 3.65%, 3/12/98............................. 1,000
--------
24,701
--------
Utah (4.1%):
5,300 Salt Lake County, PCR, Service Station Holding Project,
Series B,
3.80%*, 8/1/07**....................................... 5,300
2,200 State Recreational Facilities Improvement, 5.00%,
7/1/98................................................. 2,213
--------
7,513
--------
Virginia (2.0%):
3,700 Alexandria Industrial Development Authority, 3.95%*,
12/1/16**.............................................. 3,700
--------
Washington (5.9%):
2,300 King City, 3.65%, 3/26/98............................... 2,300
3,000 State, 5.00%, 5/1/98.................................... 3,012
5,500 State, Water Utility, 4.40%, 5/1/98..................... 5,511
--------
10,823
--------
Wyoming (17.3%):
2,400 Converse County, PCR, Pacificorp Projects, 4.90%*,
11/1/24................................................ 2,400
2,500 Lincoln County, PCR, 3.70%*, 1/20/98.................... 2,500
4,000 Lincoln County, PCR, 3.70%*, 2/17/98.................... 4,000
3,400 Lincoln County, PCR, 3.70%*, 2/23/98.................... 3,400
5,600 Lincoln County, PCR, Exxon Project, Series B, 5.10%*,
11/1/14................................................ 5,601
2,000 Lincoln County, PCR, Exxon Project, Series B, 3.85%*,
7/1/17**............................................... 2,000
3,400 Lincoln County, PCR, Exxon Project, Series C, 3.95%*,
7/1/17**............................................... 3,400
4,600 Platte County, 3.65%, 6/1/18**.......................... 4,600
3,800 Sweetwater County, PCR, PacifiCorp Projects, 3.85%*,
11/1/24**.............................................. 3,800
--------
31,701
--------
Total Municipal Bonds, Notes, & Commercial Paper 168,224
--------
</TABLE>
Continued
54
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Tax-Free Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
INVESTMENT COMPANIES (0.1%):
150 Muni Cash Mutual Fund.................................... $ 150
11 PIMC Muni Fund........................................... 11
--------
Total Investment Companies 161
--------
Total (Cost--$183,148)(a) $183,148
========
</TABLE>
- -------
Percentages indicated are based on net assets of $183,844.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market interest rates. The rate reflected on the Schedule of
Portfolio Investments is the rate in effect on December 31, 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.
IDR--Industrial Development Revenue
PCR--Pollution Control Revenue
See notes to financial statements.
55
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Treasury Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY BILLS (5.1%):
$ 5,000 2/5/98................................................... $ 4,974
5,000 3/5/98................................................... 4,953
5,000 4/2/98................................................... 4,934
5,000 4/30/98.................................................. 4,909
5,000 5/28/98.................................................. 4,893
--------
Total U.S. Treasury Bills 24,663
--------
U.S. TREASURY NOTES (12.0%):
2,500 7.88%, 1/15/98........................................... 2,502
7,500 6.13%, 3/31/98........................................... 7,509
5,000 7.88%, 4/15/98........................................... 5,028
5,000 5.13%, 4/30/98........................................... 4,992
5,000 6.13%, 5/15/98........................................... 5,008
10,000 6.25%, 6/30/98........................................... 10,033
7,500 6.25%, 7/31/98........................................... 7,524
7,500 6.13%, 8/31/98........................................... 7,521
5,000 6.00%, 9/30/98........................................... 5,014
2,500 5.63%, 11/30/98.......................................... 2,497
--------
Total U.S. Treasury Notes 57,628
--------
REPURCHASE AGREEMENTS (83.1%):
24,000 Aubrey Lanston, 6.50%, 1/2/98
(Collateralized by $77,452 various U.S.
Treasury Bills, 2/15/98-11/15/18,
0.00-9.00%, market value--$24,481)...................... 24,000
24,000 Bank of America, 6.65%, 1/2/98
(Collateralized by $23,830 U.S. Treasury
Notes, 6.63%, 6/30/01, market value--$24,485)........... 24,000
10,001 Goldman Sachs, 5.74%, 1/2/98
(Collateralized by $9,917 U.S. Treasury
Bond, 6.13%, 11/15/27, market value--$10,201)........... 10,001
120,100 Greenwich Capital, 6.60%, 1/2/98,
(Collateralized by $306,564 U.S. Treasury
Notes, 5.63-8.75%, 12/31/02-2/15/26,
market value--$122,504)................................. 120,100
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS, CONTINUED:
$ 24,000 HSBC Securities, Inc., 6.60%, 1/2/98
(Collateralized by $24,470 U.S. Treasury
Note, 4.75%, 10/31/98, market value--$24,482).......... $ 24,000
8,987 J.P. Morgan Securities, Inc., 5.50%, 1/2/98
(Collateralized by $7,600 U.S. Treasury Notes, 7.63%,
11/15/22, market value--$8,987)........................ 8,987
24,000 Lehman Brothers, 6.25%, 1/2/98 (Collateralized by
$104,195 U.S. Treasury Notes, 8.00%, 11/15/21, market
value--$24,481)........................................ 24,000
10,000 Morgan Stanley, 5.56%, 1/2/98 (Collateralized by $9,895
U.S. Treasury Notes, 6.38%, 1/15/99, market value--
$10,254)............................................... 10,000
10,000 Morgan Stanley, 5.64%, 1/2/98 (Collateralized by $8,923
U.S. Treasury Notes, 8.75%, 11/15/08, market value--
$10,241)............................................... 10,000
120,100 Nomura Securities, 6.63% 1/2/98 (Collateralized by
$418,472, U.S. Treasury Note, 0.00%, 8/15/17-5/15/18,
market value--$122,502)................................ 120,100
24,000 UBS Securities, Inc., 6.50%, 1/2/98 (Collateralized by
$17,951 U.S. Treasury Note, 8.88%, 2/15/19, market
value--$24,481)........................................ 24,000
--------
Total Repurchase Agreements 399,188
--------
Total (Cost--$481,479)(a) $481,479
========
</TABLE>
- -------
Percentages indicated are based on net assets of $480,637.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
56
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Small Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (93.9%):
Advertising (1.5%):
490,125 HA-LO Industries, Inc.(b)................................. $ 12,743
--------
Business Services (18.2%):
210,300 Applied Graphics Technologies, Inc.(b).................... 11,198
438,550 Cambridge Technology Partners, Inc.(b).................... 18,255
778,850 Concord EFS, Inc.(b)...................................... 19,374
341,800 Envoy Corp.(b)............................................ 9,955
256,500 International Telecommunications Data Systems, Inc.(b).... 8,208
309,200 Iron Mountain, Inc.(b).................................... 11,131
311,950 Medquist, Inc.(b)......................................... 10,840
311,250 NCO Group, Inc.(b)........................................ 8,015
221,300 NOVA Corp (Georgia)(b).................................... 5,533
422,700 Novacare Employee Services(b)............................. 3,382
337,150 Registry, Inc............................................. 15,467
188,400 RWD Technologies, Inc.(b)................................. 3,391
243,600 SOS Staffing Services, Inc.(b)............................ 4,598
501,350 Staff Leasing, Inc.(b).................................... 9,463
511,800 Technology Solutions Co.(b)............................... 13,499
--------
152,309
--------
Computer Hardware (2.0%):
364,550 Apex PC Solutions, Inc.(b)................................ 8,066
285,150 Box Hill Systems Corp.(b)................................. 2,976
233,300 ONTRACK Data International(b)............................. 5,818
--------
16,860
--------
Computer Software & Peripherals (12.1%):
392,300 Aspen Technologies, Inc.(b)............................... 13,436
228,900 Axnet Technologies, Inc.(b)............................... 3,949
303,700 CyberMedia, Inc.(b)....................................... 4,574
368,350 Deltek Systems, Inc.(b)................................... 5,825
362,100 JDA Software Group, Inc.(b)............................... 12,674
282,000 Logility, Inc.(b)......................................... 2,750
216,400 MEMCO Software, Inc.(b)................................... 4,382
490,000 Pegasystems, Inc.(b)...................................... 9,892
863 Structural Dynamics(b).................................... 19
430,250 VERITAS Software Corp.(b)................................. 21,942
562,900 Visio Corp.(b)............................................ 21,601
--------
101,044
--------
Correctional Facilities (1.8%):
557,000 Wackenhut Corrections Corp.(b)............................ 14,969
--------
Cosmetics/Personal Care (2.8%):
767,600 Rexall Sundown, Inc.(b)................................... 23,172
--------
Financial Services (6.7%):
310,100 First Alliance Corp.(b)................................... 5,698
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Financial Services, continued:
452,700 Franchise Mortgage Acceptance Co.(b)...................... $ 8,318
961,480 Imperial Credit Industries, Inc.(b)....................... 19,711
305,150 Metris Cos., Inc.......................................... 10,451
222,350 Sirrom Capital Corp....................................... 11,590
--------
55,768
--------
Food Products & Services (0.3%):
207,600 Fine Host Corp.(b)........................................ 2,102
--------
Funeral Services (1.0%):
375,700 Equity Corp. International(b)............................. 8,688
--------
Health Care - Services (13.1%):
281,800 Advanced Health Corp.(b).................................. 4,474
689,600 American Oncology Resources, Inc.(b)...................... 11,034
220,100 Boron, Lepore & Assoc., Inc.(b)........................... 6,053
351,350 Capital Senior Living Corp.(b)............................ 3,667
282,400 Carematrix Corp.(b)....................................... 8,119
263,650 Concentra Managed Care, Inc.(b)........................... 8,898
464,800 NCS HealthCare, Inc., Class A(b).......................... 12,259
1,060,300 Orthodontic Centers of America, Inc.(b)................... 17,626
464,800 Parexel International Corp.(b)............................ 17,198
408,600 Serologicals Corp.(b)..................................... 10,624
355,200 Total Renal Care Holdings, Inc.(b)........................ 9,768
--------
109,720
--------
Manufactured Housing (0.5%):
204,950 Modtech, Inc.(b).......................................... 3,997
--------
Medical Equipment & Supplies (1.6%):
218,400 Molecular Devices Corp.(b)................................ 4,641
172,900 Sabratek Corp.(b)......................................... 4,971
202,500 Schick Technologies, Inc.(b).............................. 3,936
--------
13,548
--------
Oilfield Services & Equipment (1.8%):
354,900 IRI International Corp.(b)................................ 4,969
263,300 Key Energy Group, Inc.(b)................................. 5,710
359,500 Omni Energy Services,(b).................................. 4,224
--------
14,903
--------
Pharmaceuticals (5.8%):
704,000 Dura Pharmaceuticals, Inc.(b)............................. 32,296
427,925 Jones Medical Industries, Inc............................. 16,368
--------
48,664
--------
Printing & Publishing (1.3%):
232,450 Consolidated Graphics, Inc.(b)............................ 10,838
--------
Rental Equipment Furniture (1.2%):
406,300 Rental Service Corp.(b)................................... 9,980
--------
</TABLE>
Continued
57
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Small Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Resorts & Entertainment (4.1%):
392,675 Regal Cinemas, Inc.(b).................................... $ 10,946
608,150 Signature Resorts, Inc.(b)................................ 13,303
451,100 Vistana, Inc.(b).......................................... 10,375
--------
34,624
--------
Restaurants (2.6%):
546,800 Landry's Seafood Restaurants(b)........................... 13,123
294,500 The Cheesecake Factory(b)................................. 8,982
--------
22,105
--------
Retail - Speciality Stores (0.8%):
179,550 Insight Enterprises(b).................................... 6,598
--------
Retail Stores (3.8%):
422,575 Petco Animal Supplies, Inc.(b)............................ 10,142
426,000 Renter's Choice, Inc.(b).................................. 8,733
364,100 The Men's Wearhouse, Inc.(b).............................. 12,652
--------
31,527
--------
Technology (4.6%):
228,100 ENCAD, Inc.(b)............................................ 6,273
298,600 International Manufacturing Services(b)................... 2,165
440,200 Sanmina Corp.(b).......................................... 29,823
--------
38,261
--------
Telecommunications - Services & Equipment (3.0%):
311,950 Pacific Gateway Exchange, Inc.(b)......................... 16,787
363,200 SmarTalk Teleservices, Inc.(b)............................ 8,263
--------
25,050
--------
Wholesale Distribution (3.5%):
1,218,724 Brightpoint, Inc.(b)...................................... 16,910
240,100 CDW Computer Center, Inc.(b).............................. 12,515
--------
29,425
--------
Total Common Stocks 786,895
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- --------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS (3.4%):
Canada (0.7%):
Computer Software (0.7%):
258,700 Discreet Logic, Inc.(b).................................. $ 5,675
--------
Israel (2.7%):
Computer Hardware (1.2%):
235,200 Nice Systems Ltd.(b)..................................... 9,878
--------
Medical Equipment & Supplies (1.5%):
323,000 ESC Medical Systems Ltd.(b).............................. 12,517
--------
22,395
--------
Total Foreign Common Stocks 28,070
--------
Repurchase Agreements (2.7%):
22,388,000 Goldman Sachs, 6.80%, 1/2/98
(Collateralized by $27,780 various
U.S. Government securities 6.15-14.66%,
12/25/21-1/15/24, market value--$22,836)................ 22,388
--------
Total Repurchase Agreements 22,388
--------
Total (Cost--$630,016)(a) $837,353
========
</TABLE>
- -------
Percentages indicated are based on net assets of $837,881.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized appreciation..................................... $244,897
Unrealized depreciation..................................... (37,560)
--------
Net unrealized appreciation................................. $207,337
========
(b) Represents non-income producing securities.
See notes to financial statements.
58
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Mid Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (97.5%):
Apparel/Shoes (1.2%):
153,300 Brylane, Inc.(b).......................................... $ 7,550
--------
Broadcasting & Publishing (5.7%):
579,700 CanWest Global Communications Corp........................ 10,435
202,000 Chancellor Media Corp.(b)(c).............................. 15,074
128,600 Clear Channel Communications,
Inc.(b)(c)............................................... 10,216
--------
35,725
--------
Building Products (1.0%):
259,100 Royal Group Technologies Ltd.(b)(c)....................... 6,008
--------
Business Services (8.1%):
256,800 Analog Devices, Inc.(b)(c)................................ 7,110
269,600 BA Merchant Services, Inc.(b)............................. 4,785
232,500 Cintas Corp............................................... 9,068
330,175 Paychex, Inc.............................................. 16,715
421,400 SunGard Data Systems, Inc.(b)(c).......................... 13,063
--------
50,741
--------
Computer Software & Peripherals (14.2%):
190,800 Baan Co. N.V.(b)(c)....................................... 6,296
222,600 BMC Software, Inc.(b)(c).................................. 14,608
385,700 Cadence Design Systems, Inc.(b)(c)........................ 9,450
257,900 Cambridge Technology Partners, Inc.(b).................... 10,735
117,300 CBT Group PLC(b).......................................... 9,633
98,100 HNC Software(b)........................................... 4,218
196,100 Parametric Technology Corp.(b)............................ 9,290
507,200 PeopleSoft, Inc.(b)(c).................................... 19,781
96,300 VERITAS Software Corp.(b)................................. 4,911
--------
88,922
--------
Consumer Goods & Services (0.7%):
197,000 U.S. Rentals, Inc.(b)..................................... 4,630
--------
Correctional Facilities (0.8%):
137,000 Corrections Corp. of America(b)........................... 5,078
--------
Data Processing & Reproduction (2.2%):
276,700 Fiserv, Inc.(b)........................................... 13,593
--------
Educational Services (2.2%):
108,100 Apollo Group, Inc. (c)(b)................................. 5,108
221,650 Sylvan Learning Systems, Inc.(b)(c)....................... 8,644
--------
13,752
--------
Electrical & Electronic (1.5%):
324,660 Molex, Inc................................................ 9,334
--------
Environmental Services (1.4%):
231,770 USA Waste Services, Inc.(b)(c)............................ 9,097
--------
COMMON STOCKS, CONTINUED:
Financial Services (5.0%):
255,150 Concord EFS, Inc.(b)...................................... 6,347
258,200 Finova Group, Inc......................................... 12,830
108,800 FIRSTPLUS Financial Group, Inc.(b)(c)..................... 4,175
226,200 Nationwide Financial Services............................. 8,171
--------
31,523
--------
Food & Household Products (1.1%):
158,500 Sunbeam Corp.(c).......................................... 6,677
--------
Funeral Services (4.7%):
555,600 Service Corp. International............................... 20,522
187,550 Stewart Enterprises....................................... 8,745
--------
29,267
--------
Health & Personal Care (0.8%):
195,400 Alberto-Culver Co.(c)..................................... 5,276
--------
Health Care - Services (5.2%):
219,600 Health Care & Retirement Corp.(b)......................... 8,839
661,687 Health Management Associates, Inc.(b)..................... 16,708
185,000 Quintiles Transnational Corp.(b)(c)....................... 7,076
--------
32,623
--------
Hotels & Lodging (1.4%):
257,500 Capstar Hotel(b).......................................... 8,835
--------
Insurance (2.5%):
367,800 SunAmerica, Inc.(c)....................................... 15,723
--------
Manufacturing - Consumer Goods (2.0%):
300,200 Newell Co.(c)............................................. 12,759
--------
Medical Equipment & Supplies (3.7%):
142,000 Guidant Corp.............................................. 8,840
470,700 Omnicare, Inc.(c)......................................... 14,591
--------
23,431
--------
Office Equipment & Services (0.3%):
128,500 Electronics for Imaging, Inc.(b)(c)....................... 2,136
--------
Oilfield Services & Equipment (3.6%):
93,200 Camco International, Inc.................................. 5,936
137,400 Cooper Cameron Corp....................................... 8,381
480,400 Newpark Resources, Inc.(b)................................ 8,407
--------
22,724
--------
Pharmaceuticals (1.9%):
255,900 Dura Pharmaceuticals, Inc.(b)(c).......................... 11,739
--------
Resorts & Entertainment (2.0%):
132,700 Royal Caribbean Cruises Ltd.(c)........................... 7,074
253,800 Signature Resorts, Inc.(b)(c)............................. 5,552
--------
12,626
--------
</TABLE>
Continued
59
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Mid Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail Stores (5.8%):
284,843 Consolidated Stores Corp.(b)(c)........................... $ 12,515
177,750 Dollar General Corp.(c)................................... 6,443
226,100 MSC Industrial Direct Co., Inc.(c)........................ 9,581
396,000 U.S. Office Products Co.(b)(c)............................ 7,772
--------
36,311
--------
Savings & Loans Thrift (1.4%):
355,600 Ocwen Financial Services Corp.(b)......................... 9,046
--------
Semiconductors (0.7%):
110,800 Vitesse Semiconductor Corp................................ 4,183
--------
Technology (1.6%):
60,000 Sanmina Corp.(b)(c)....................................... 4,065
138,600 Uniphase Corp.(b)(c)...................................... 5,735
--------
9,800
--------
Technology - Software (3.1%):
152,600 Computer Sciences Corp.(b)................................ 12,742
179,950 Visio Corp.(b)(c)......................................... 6,906
--------
19,648
--------
Telecommunications--Services & Equipment (6.4%):
259,200 ADC Telecommunications, Inc.(b)(c)(b)..................... 10,821
181,000 Electric Lightwave(b)..................................... 2,692
206,700 McLeod USA, Inc.(b)....................................... 6,614
194,500 MRV Communications(b)..................................... 4,644
203,300 PairGain Technologies, Inc.(b)(c)......................... 3,939
102,900 Qwest Communications International, Inc.(b)............... 6,123
457,500 West TeleServices Corp.(b)................................ 5,490
--------
40,323
--------
COMMON STOCKS, CONTINUED:
Wholesale Distribution (2.6%):
335,200 Brightpoint, Inc.(b).................................... 4,651
61,500 CDW Computer Center, Inc.(b)(c)......................... 3,206
305,600 Richfood Holdings, Inc. ................................ 8,633
--------
16,490
--------
Wholesale Distribution - Pharmaceuticals (2.7%):
229,575 Cardinal Health, Inc.(c)................................ 17,247
--------
Total Common Stocks 612,817
--------
REPURCHASE AGREEMENTS (2.5%):
15,704,000 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $17,376
Federal National Mortgage Assoc., 6.32%, 1/25/21,
market value--$16,018)................................. 15,704
--------
Total Repurchase Agreements 15,704
--------
Total (Cost--$459,798)(a) $628,521
========
</TABLE>
- -------------
Percentages indicated are based on net assets of $628,423.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $192,194
Unrealized depreciation..................................... (23,471)
--------
Net unrealized appreciation................................. $168,723
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
60
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Large Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (97.6%):
Banking (1.3%):
78,100 State Street Corp......................................... $ 4,544
--------
Business Services (1.2%):
67,100 Automatic Data Processing, Inc............................ 4,118
--------
Chemicals (1.3%):
102,300 Monsanto Co............................................... 4,297
--------
Computer Hardware (1.7%):
87,800 EMC Corp.(b)(c)........................................... 2,409
85,600 Sun Microsystems, Inc.(b)................................. 3,413
--------
5,822
--------
Computer Software & Peripherals (11.3%):
39,200 American Online, Inc.(b)(c)............................... 3,496
52,700 BMC Software, Inc.(b)(c).................................. 3,458
102,600 Cadence Design Systems, Inc.(b)(c)........................ 2,514
163,650 Cisco Systems, Inc.(b).................................... 9,125
143,200 First Data Corp.(c)....................................... 4,189
59,800 Microsoft, Inc.(b)........................................ 7,729
54,500 Parametric Technology Corp.(b)............................ 2,582
139,600 PeopleSoft, Inc.(b)....................................... 5,444
--------
38,537
--------
Consumer Goods & Services (5.4%):
282,065 Cendant Corp.(b)(c)....................................... 9,696
108,200 Procter & Gamble Co....................................... 8,636
--------
18,332
--------
Cosmetics/Personal Care (1.8%):
59,600 Gillette Co.(c)........................................... 5,986
--------
Diversified Operations (3.3%):
125,600 Cognizant Corp............................................ 5,597
24,400 Corning, Inc.............................................. 906
107,800 Tyco International Ltd.(c)................................ 4,858
--------
11,361
--------
Electrical & Electronic (4.4%):
69,400 Applied Materials, Inc.(b)................................ 2,091
94,500 Emerson Electric Co....................................... 5,333
103,900 General Electric Co....................................... 7,624
--------
15,048
--------
Environmental Services (1.4%):
120,000 USA Waste Services, Inc.(b)(c)............................ 4,710
--------
Financial Services (9.6%):
88,200 American Express Co....................................... 7,871
99,700 Associates First Capital Corp.(c)......................... 7,091
123,200 Federal Home Loan Mortgage Corp........................... 5,167
COMMON STOCKS, CONTINUED:
Financial Services, continued:
46,500 Household International, Inc.............................. 5,932
241,275 MBNA Corp.(c)............................................. 6,590
--------
32,651
--------
Food & Beverage (1.4%):
71,300 The Coca-Cola Co.......................................... 4,750
--------
Food Products & Services (3.0%):
52,700 CPC International, Inc.(b)................................ 5,678
69,100 Safeway, Inc.(b)(c)....................................... 4,371
--------
10,049
--------
Forest & Paper Products (1.0%):
72,200 Kimberly-Clark Corp....................................... 3,560
--------
Funeral Services (1.5%):
141,500 Service Corp. International............................... 5,227
--------
Health Care - Services (1.1%):
138,900 HEALTHSOUTH Corp.(b)(c)................................... 3,854
--------
Hotels & Lodging (1.6%):
76,300 Marriott International, Inc............................... 5,284
--------
Industrial Goods & Services (4.0%):
71,800 Clorox Co.(c)............................................. 5,677
106,900 United Technologies Corp.................................. 7,783
--------
13,460
--------
Insurance (8.8%):
76,000 American International Group, Inc......................... 8,265
97,100 Conseco, Inc.(c).......................................... 4,412
88,100 Marsh & McLennan Cos., Inc................................ 6,569
110,800 MGIC Investment Corp.(c).................................. 7,368
80,250 SunAmerica, Inc.(c)....................................... 3,431
--------
30,045
--------
Medical Equipment & Supplies (2.4%):
71,000 Guidant Corp.............................................. 4,419
73,800 Medtronic, Inc.(c)........................................ 3,861
--------
8,280
--------
Office Equipment & Services (3.1%):
59,300 Hewlett Packard Co........................................ 3,706
90,900 Xerox Corp................................................ 6,710
--------
10,416
--------
Oil & Gas (1.0%):
41,200 Schlumberger Ltd.......................................... 3,317
--------
Pharmaceuticals (8.4%):
128,800 Eli Lilly & Co............................................ 8,968
</TABLE>
Continued
61
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Large Capitalization Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Pharmaceuticals, continued:
50,200 Johnson & Johnson............................. $ 3,307
126,200 Pfizer, Inc................................... 9,409
57,000 Warner-Lambert Co.(c)......................... 7,068
--------
28,752
--------
Resorts & Entertainment (1.9%):
116,100 Carnival Cruise Lines......................... 6,429
--------
Retail - Speciality Stores (2.3%):
134,650 Home Depot, Inc............................... 7,928
--------
Retail Stores (2.5%):
56,700 Lowe's Cos.(c)................................ 2,704
184,900 Walgreen Co.(c)............................... 5,801
--------
8,505
--------
Semiconductors (1.0%):
39,700 KLA-Tencor Corp.(b)(c)........................ 1,533
39,600 Texas Instruments............................. 1,782
--------
3,315
--------
Technology (1.6%):
76,900 Intel Corp.................................... 5,402
--------
COMMON STOCKS, CONTINUED:
Telecommunications - Services &
Equipment (6.6%):
122,800 AirTouch Communications,
Inc.(b)....................................... 5,104
85,200 Lucent Technologies,
Inc........................................... 6,805
72,300 Teleport Communications
Group, Inc.(b)(c)............................ 3,967
55,900 Tellabs, Inc.(b)(c)........................... 2,956
122,100 WorldCom, Inc.(b)(c).......................... 3,694
--------
22,526
--------
Wholesale Distribution -
Pharmaceuticals (1.7%):
77,350 Cardinal Health,
Inc.(c)....................................... 5,811
--------
Total Common Stocks 332,316
--------
REPURCHASE AGREEMENTS (2.4%):
8,003,000 Goldman Sachs, 6.80%,
1/2/98
(Collateralized by
$9,087 various U.S.
Government securities,
6.45-14.66%, 12/25/21-
3/15/24, market value--
$8,163)...................................... 8,003
--------
Total Repurchase Agreements 8,003
--------
Total (Cost--$246,953)(a).............................. $340,319
========
</TABLE>
- ------------
Percentages indicated are based on net assets of $340,319.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $99,199
Unrealized depreciation...................................... (5,833)
-------
Net unrealized appreciation.................................. $93,366
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
62
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (87.3%):
ARGENTINA (1.4%):
Oil & Gas Exploration, Production & Services (1.4%):
188,000 YPF Sociedad Anonima, ADR................................. $ 6,427
--------
AUSTRALIA (2.1%):
Construction (0.4%):
485,000 Leighton Holdings......................................... 1,694
--------
Diversified Operations (0.8%):
452,348 Smith (Howard) Ltd........................................ 3,755
--------
Pharmaceuticals (0.9%):
651,500 CSL Ltd................................................... 4,075
--------
9,524
--------
AUSTRIA (0.5%):
Engineering (0.5%):
13,300 VA Technologie AG(b)...................................... 2,016
--------
BELGIUM (2.4%):
Electronic Components/Instruments (0.5%):
13,000 Barco N.V................................................. 2,386
--------
Retail Stores/Catalog (1.9%):
16,200 Colrayt N.V............................................... 8,275
--------
10,661
--------
BRAZIL (1.9%):
Beverages & Tobacco (0.5%):
155,000 Compania Cervejaria Brahma, Sponsored ADR................. 2,199
--------
Telecommunications (1.4%):
53,800 Telecommunicacoes Brasileiras SA.......................... 6,264
--------
8,463
--------
CANADA (1.5%):
Aerospace/Defense (1.1%):
120,000 Bombardier, Inc., Class B................................. 2,465
333,100 Cae, Inc.................................................. 2,607
--------
5,072
--------
Telecommunications (0.4%):
52,000 Newbridge Network Corp., ADR(b)........................... 1,814
--------
6,886
--------
CHILE (1.3%):
Telecommunications (1.3%):
193,925 Cia de Telecomunicaciones de Chile SA, ADR................ 5,794
--------
FINLAND (2.3%):
Computer Software (0.6%):
25,000 TT Tieto Oy--B Shares..................................... 2,814
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
FINLAND, CONTINUED:
Food Products & Services (0.5%):
48,700 Huhtamaki Group........................................... $ 2,012
--------
Telecommunications - Services & Equipment (1.2%):
75,000 Nokia AB, Class A, ADR.................................... 5,250
--------
10,076
--------
FRANCE (4.6%):
Engineering (1.1%):
15,600 Altran Technologies....................................... 4,771
--------
Machinery & Equipment (0.9%):
63,000 Sidel SA.................................................. 4,178
--------
Office Equipment/Supplies (1.4%):
85,860 BIC SA.................................................... 6,271
--------
Retail Stores/Catalog (1.2%):
9,700 Pinault-Printemps-Redoute SA.............................. 5,177
--------
20,397
--------
GERMANY (5.5%):
Machinery & Equipment (2.1%):
18,325 Mannesmann Ag(b).......................................... 9,203
--------
Manufacturing - Consumer Goods (2.2%):
75,835 Adidas AG................................................. 10,038
--------
Pharmaceuticals (1.2%):
55,735 Schering AG............................................... 5,378
--------
24,619
--------
GREECE (0.3%):
Beverages & Tobacco (0.3%):
66,000 Hellenic Bottling Co. SA.................................. 1,533
--------
HONG KONG (2.7%):
Automobiles (0.3%):
2,604,000 Qingling Motors Co........................................ 1,277
--------
Electrical & Electronic (0.2%):
343,900 Johnson Electric Holdings Ltd.(b)......................... 990
--------
Food Products & Services (0.7%):
1,200,000 Guangnan Holdings......................................... 983
2,100,000 NG Fung Hong Ltd.......................................... 2,209
--------
3,192
--------
Real Estate (0.4%):
283,900 Sun Hung Kai Properties Ltd.(b)........................... 1,979
--------
Utilities - Electrical & Gas (1.1%):
2,468,840 Hong Kong & China Gas Co. Ltd............................. 4,779
--------
12,217
--------
</TABLE>
Continued
63
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount}
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
INDONESIA (0.0%):
Banking (0.0%):
701 PT Bank International Indonesia.......................... $ 0
---------
ISRAEL (1.0%):
Pharmaceuticals (1.0%):
93,600 Teva Pharmaceutical Industries, Ltd...................... 4,428
---------
ITALY (2.7%):
Electronic Components/Instruments (0.5%):
108,000 Gewiss SpA............................................... 2,046
---------
Jewelry (0.9%):
887,200 Bulgari SpA.............................................. 4,517
---------
Medical Equipment & Supplies (0.5%):
78,000 Safilo SpA(b)............................................ 2,029
---------
Telecommunications - Services & Equipment (0.8%):
750,000 Telecom Italia Mobile SpA................................ 3,464
---------
12,056
---------
JAPAN (20.9%):
Computer Software (1.9%):
115,000 TDK Corp................................................. 8,703
---------
Electrical & Electronic (4.8%):
60,500 Keyence Corp............................................. 8,980
310,000 Matsushita Electric Works................................ 2,694
95,000 Rohm Corp................................................ 9,721
---------
21,395
---------
Electronic Components/Instruments (3.5%):
121,000 Hirose Electric.......................................... 6,207
370,000 NEC Corp................................................. 3,956
350,000 Omron Corp............................................... 5,491
---------
15,654
---------
Food Products & Services (0.9%):
102,000 Matsumotokiyoshi......................................... 3,922
---------
Health & Personal Care (0.5%):
75,000 Hoya Corp................................................ 2,365
---------
Health Care (0.2%):
21,000 Nichii Gakkan Co......................................... 727
---------
Manufacturing - Consumer Goods (2.8%):
318,000 Canon, Inc............................................... 7,435
130,000 Fuji Photo Film Ltd...................................... 4,999
---------
12,434
---------
Office Equipment & Services (1.6%):
569,000 Ricoh Co. Ltd............................................ 7,089
---------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Pharmaceuticals (3.6%):
233,000 Sankyo Co. Ltd............................................ $ 5,286
376,000 Takeda Chemical Industries................................ 10,758
--------
16,044
--------
Telecommunications (0.4%):
506,000 Denki Kogyo Co. Ltd....................................... 1,654
--------
Toys (0.7%):
32,000 Nintendo.................................................. 3,150
--------
93,137
--------
MALAYSIA (0.1%):
Engineering (0.1%):
630,000 United Engineers Ltd...................................... 524
--------
MEXICO (3.2%):
Beverages & Tobacco (1.5%):
864,500 Fomento Economico Mexicano, Sa de CV...................... 6,905
--------
Diversified Operations (1.0%):
644,000 Grupo Carso Sa de CV...................................... 4,290
--------
Food Products & Services (0.7%):
3,010,000 Grupo Industrial Maseca Sa de CV.......................... 3,017
--------
14,212
--------
NETHERLANDS (5.6%):
Broadcasting & Publishing (2.4%):
302,500 Elsevier N.V.............................................. 4,894
46,243 Wolters Kluwer N.V........................................ 5,975
--------
10,869
--------
Commercial Services (0.5%):
65,000 Getronics N.V............................................. 2,071
--------
Office Equipment & Services (2.7%):
126,984 Ahrend.................................................... 3,990
75,800 Oce-Van Der Grinten N.V................................... 8,263
--------
12,253
--------
25,193
--------
NEW ZEALAND (0.8%):
Agriculture (0.4%):
609,500 Fernz Corp. Ltd........................................... 1,575
--------
Consumer Goods & Services (0.4%):
692,679 Fisher & Paykel Industries Ltd............................ 2,212
--------
3,787
--------
</TABLE>
Continued
64
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------ --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
PORTUGAL (1.9%):
Telecommunications (1.9%):
183,000 Portugal Telecom SA................................... $ 8,601
--------
RUSSIA (0.5%):
Oil & Gas Exploration, Production & Services (0.5%):
24,000 Lukoil Holdings, ADR.................................. 2,204
--------
SINGAPORE (0.3%):
Diversified Operations (0.2%):
991,900 Singapore Technologies Industrial Corp................ 948
--------
Electrical & Electronic (0.1%):
885,000 Thakral Corp.......................................... 460
--------
1,408
--------
SOUTH AFRICA (0.8%):
Beverages & Tobacco (0.4%):
75,000 South African Breweries............................... 1,849
--------
Investment Company (0.4%):
427,550 Dimension Data Holdings Ltd.(b)....................... 1,845
--------
3,694
--------
SPAIN (2.8%):
Apparel/Shoes (0.7%):
150,000 Cortefiel SA.......................................... 3,012
--------
Beverages & Tobacco (0.8%):
45,000 Talbacalera SA........................................ 3,646
--------
Commercial Services (1.3%):
600,000 Prosegur Cia de Seguridad SA.......................... 6,023
--------
12,681
--------
SWEDEN (2.6%):
Engineering (1.3%):
202,500 Sandvik B............................................. 5,793
--------
Industrial Goods & Services (1.0%):
150,000 Atlas Copco AB........................................ 4,481
--------
Metals (0.3%):
55,000 Assa Abloy AB-B....................................... 1,456
--------
11,730
--------
SWITZERLAND (4.8%):
Banking (1.2%):
3,350 Novartis AG........................................... 5,443
--------
Food Products & Services (1.9%):
5,430 Nestle SA Registered.................................. 8,150
--------
Pharmaceuticals (1.7%):
779 Roche Holdings AG..................................... 7,747
--------
21,340
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
UNITED KINGDOM (12.8%):
Aerospace/Defense (1.3%):
164,200 British Aerospace PLC......................... $ 4,704
82,300 Cobham PLC.................................... 1,133
--------
5,837
--------
Air Transportation/Related (1.0%):
223,000 Airtours PLC.................................. 4,532
--------
Appliances & Household Products (0.4%):
211,000 D.F.S. Furniture Co. PLC...................... 1,791
--------
Building Products (1.2%):
1,819,100 Polypipe PLC.................................. 5,253
--------
Capital Goods (1.9%):
808,100 Powerscreen International PLC................. 8,078
--------
Computer Software (1.7%):
394,057 Logica PLC.................................... 7,505
--------
Engineering (1.4%):
333,000 Siebe PLC..................................... 6,246
--------
Food Products & Services (1.3%):
485,000 Compass Group PLC............................. 5,937
--------
Machinery & Equipment (0.8%):
809,100 TT Group PLC.................................. 3,681
--------
Manufacturing - Consumer Goods (1.0%):
2,403,199 Halma PLC..................................... 4,607
--------
Metals (0.8%):
390,000 Johnson Matthey PLC........................... 3,475
--------
56,942
--------
Total Common Stocks 390,550
--------
PREFERRED STOCKS (4.7%):
BRAZIL (0.5%):
Banking (0.5%):
4,320,000 Banco Itau.................................... 2,323
--------
GERMANY (4.2%):
Business Services (3.0%):
40,000 SAP AG........................................ 12,997
--------
Medical Equipment & Supplies (1.2%):
30,300 Fresenius AG.................................. 5,510
--------
18,507
--------
Total Preferred Stocks 20,830
--------
</TABLE>
Continued
65
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
International Discovery Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- --------------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (7.3%):
6,052,915 Parkstone U.S. Government Obligations Fund... $ 6,053
26,386,943 Parkstone Prime Obligations Fund............. 26,387
--------
Total Investment Companies 32,440
--------
Total (Cost--$364,448)(a) $443,820
========
</TABLE>
- -------
Percentages indicated are based on net assets of $446,979.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $101,560
Unrealized depreciation..................................... (22,188)
--------
Net unrealized appreciation................................. $ 79,372
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
66
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Limited Maturity Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (12.8%):
$24,370 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $25,255
Federal Home Loan Mortgage Corp., 6.70%, 11/15/23,
market value--$24,857).................................. $ 24,370
--------
Total Repurchase Agreements 24,370
--------
GOVERNMENT OBLIGATIONS (32.4%):
U.S. Treasury Notes (32.4%):
41,700 5.88%, 8/31/99(b)........................................ 41,829
12,000 5.75%, 9/30/99(b)........................................ 12,016
6,900 5.50%, 12/31/00.......................................... 6,859
625 6.88%, 5/15/06........................................... 669
--------
Total Government Obligations 61,373
--------
CORPORATE BONDS (40.2%):
Euro Dollar (9.1%):
3,000 Barclays, 11.63%, 5/1/03................................. 3,053
3,750 British Gas & Finance, 8.38%, 9/8/99..................... 3,915
5,000 National Power Co. PLC, 7.12%, 7/11/01................... 5,126
5,000 SNCB Belgium Rail, 8.25%, 2/2/00......................... 5,199
--------
17,293
--------
Financial Services (16.8%):
5,000 Associate Corp. N.A., 6.20%, 2/15/00..................... 5,006
5,000 AT&T Capital Corp., 6.41%, 8/13/99....................... 5,000
2,500 Beneficial Corp., 6.39%, 10/7/02......................... 2,506
5,000 Lehman Brothers Holdings, 6.89%, 10/10/00................ 5,068
5,000 Main Place Real Estate Investment, 5.65%, 3/25/00........ 5,000
5,000 Merrill Lynch, 6.22%, 9/22/00............................ 5,013
3,000 National City Capital Trust I, 6.75%, 6/1/99............. 3,024
1,000 Wachovia Bank, 6.70%, 4/14/99............................ 1,008
--------
31,625
--------
Industrials (7.6%):
4,750 Hertz Corp., 9.50%, 5/15/98.............................. 4,805
4,700 Ingersoll-Rand, 6.34%, 12/3/01........................... 4,724
5,000 Occidental Petroleum, 5.85%, 11/9/98..................... 4,975
--------
14,504
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Telecommunications (2.6%):
$5,000 US West Communications,
6.13%, 11/21/00......................................... $ 4,963
--------
Yankee (4.1%):
5,365 Korea Development Bank, 9.25%, 6/15/98................... 5,097
2,477 Quebec Province, 13.00%, 10/1/13......................... 2,715
--------
7,812
--------
Total Corporate Bonds 76,197
--------
ASSET BACKED SECURITIES (8.3%):
2,797 Alps, 7.15%, 9/15/04..................................... 2,797
2,641 General Electric Capital Services, Inc., 7.50%, 5/25/20.. 2,655
4,360 Green Tree Financial Corp., 6.55%, 7/15/28............... 4,399
1,490 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09... 1,519
1,301 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08........... 1,307
2,132 Lehman Mortgage Trust, 8.00%, 3/20/99, Series 91-92...... 2,160
908 Structured Asset Securities Co., 7.50%, 8/25/26.......... 920
--------
Total Asset Backed Securities 15,757
--------
FLOATING RATE NOTES (4.3%):
Asset Backed Securities (4.3%):
5,000 AT&T Universal Credit Card Master Trust, 5.90%*, 4/17/02. 5,000
3,176 HFC Home Equity Loan, 6.14%*, 10/20/07................... 3,196
--------
Total Floating Rate Notes 8,196
--------
Total (Cost--$186,378)(a) $185,893
========
</TABLE>
- -------
Percentages indicated are based on net assets of $189,699.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rates,
which will change periodically, are based upon bank prime rates or an index
of the market rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect on December 31, 1997.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
Unrealized appreciation..................................... $ 605
Unrealized depreciation..................................... (1,090)
-------
Net unrealized depreciation................................. $ (485)
=======
(b) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
67
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Intermediate Government Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (0.2%):
$ 427 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $468
Federal Home Loan Mortgage Corp., 6.05%, 12/15/23, market
value--$436).............................................. $ 427
--------
Total Repurchase Agreements 427
--------
GOVERNMENT OBLIGATIONS (85.1%):
Mortgage Pass Thrus (13.3%):
Federal Home Loan Mortgage Corp. (0.9%):
1,180 8.75%, 4/1/17, Pool # 555138............................... 1,243
540 8.00%, 5/1/17, Pool # 141183............................... 557
--------
1,800
--------
Federal National Mortgage Assoc. (7.0%):
770 8.75%, 8/1/09, Pool # 20252................................ 808
1,465 9.00%, 8/1/09, Pool # 84251................................ 1,549
1,837 9.00%, 1/1/10, Pool # 62226................................ 1,944
1,654 11.50%, 5/1/10, Pool # 313025.............................. 1,778
3,288 13.00%, 8/15/15, Pool # 100044............................. 3,944
1,448 8.25%, 7/1/17, Pool # 124439............................... 1,501
1,880 8.50%, 2/1/25, Pool # 303545............................... 1,960
--------
13,484
--------
Government National Mortgage Assoc. (5.4%):
87 9.00%, 9/15/04, Pool # 4029................................ 94
41 9.00%, 10/15/04, Pool # 4265............................... 44
59 9.00%, 12/15/04, Pool # 4309............................... 63
52 9.00%, 12/15/04, Pool # 4790............................... 56
57 9.00%, 12/15/04, Pool # 4991............................... 61
102 9.00%, 1/15/05, Pool # 4610................................ 109
28 9.00%, 1/15/05, Pool # 4820................................ 30
23 9.00%, 1/15/05, Pool # 4961................................ 25
37 9.00%, 1/15/05, Pool # 4921................................ 40
52 9.00%, 4/15/05, Pool # 8328................................ 56
131 9.00%, 9/15/08, Pool # 25395............................... 140
95 9.00%, 9/15/08, Pool # 24863............................... 101
33 9.00%, 9/15/08, Pool # 25407............................... 35
15 9.00%, 10/15/08, Pool # 27716.............................. 16
20 9.00%, 10/15/08, Pool # 26836.............................. 22
158 9.00%, 10/15/08, Pool # 23554.............................. 169
106 9.00%, 11/15/08, Pool # 27002.............................. 114
135 9.00%, 12/15/08, Pool # 29022.............................. 145
140 9.00%, 12/15/08, Pool # 28156.............................. 150
132 9.00%, 2/15/09, Pool # 29381............................... 141
102 9.00%, 2/15/09, Pool # 27253............................... 109
18 9.00%, 3/15/09, Pool # 29644............................... 19
53 9.00%, 4/15/09, Pool # 45022............................... 57
60 9.00%, 4/15/09, Pool # 31183............................... 64
192 9.00%, 4/15/09, Pool # 32386............................... 205
120 9.00%, 4/15/09, Pool # 27022............................... 129
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 71 9.00%, 4/15/09, Pool # 31362............................... $ 76
69 9.00%, 5/15/09, Pool # 38055............................... 74
202 9.00%, 5/15/09, Pool # 34103............................... 216
69 9.00%, 5/15/09, Pool # 30185............................... 74
296 9.00%, 5/15/09, Pool # 32989............................... 317
15 9.00%, 5/15/09, Pool # 29539............................... 16
64 9.00%, 7/15/09, Pool # 33963............................... 68
231 9.50%, 12/20/13, Pool # 119221............................. 248
162 9.50%, 10/20/14, Pool # 121161............................. 174
19 9.50%, 12/20/15, Pool # 000456............................. 21
69 9.50%, 1/20/16, Pool # 149721.............................. 74
367 9.50%, 2/20/16, Pool # 150634.............................. 394
130 9.50%, 3/20/16, Pool # 149729.............................. 140
374 9.50%, 4/20/16, Pool # 149718.............................. 402
322 9.50%, 4/20/16, Pool # 152042.............................. 346
81 9.50%, 5/20/16, Pool # 158468.............................. 88
101 9.50%, 5/20/16, Pool # 160304.............................. 109
530 9.50%, 6/20/16, Pool # 166048.............................. 568
182 9.50%, 7/20/16, Pool # 002590.............................. 195
38 9.50%, 8/20/16, Pool # 177323.............................. 40
98 9.50%, 9/20/16, Pool # 002626.............................. 106
168 9.50%, 9/20/16, Pool # 170929.............................. 180
104 9.50%, 11/20/16, Pool # 2661............................... 112
56 9.50%, 3/20/17, Pool # 2732................................ 60
134 9.50%, 8/20/17, Pool # 214044.............................. 144
520 9.50%, 9/20/17, Pool # 836................................. 559
99 9.50%, 9/20/17, Pool # 235042.............................. 106
304 9.50%, 2/20/18, Pool # 217671.............................. 327
77 9.50%, 3/20/18, Pool # 247563.............................. 82
60 9.50%, 6/20/18, Pool # 001002.............................. 65
137 9.50%, 6/20/18, Pool # 246100.............................. 147
70 9.50%, 6/20/18, Pool # 250860.............................. 75
217 9.50%, 6/20/18, Pool # 252784.............................. 233
19 9.50%, 8/20/18, Pool # 001038.............................. 21
82 9.50%, 12/20/18, Pool # 263506............................. 88
65 9.50%, 7/20/19, Pool # 255345.............................. 70
84 9.50%, 8/20/19, Pool # 1236................................ 91
100 9.50%, 10/20/19, Pool # 1273............................... 108
327 9.50%, 12/20/19, Pool # 001309............................. 352
438 9.50%, 12/20/19, Pool # 281785............................. 471
46 9.50%, 1/20/20, Pool # 1327................................ 50
137 9.50%, 5/20/20, Pool # 1399................................ 147
93 9.50%, 9/20/20, Pool # 1471................................ 100
131 9.50%, 11/20/20, Pool # 1507............................... 141
72 9.50%, 12/20/20, Pool # 1525............................... 77
65 9.50%, 2/20/21, Pool # 21561............................... 69
85 9.50%, 7/20/21, Pool # 1651................................ 91
84 9.50%, 8/20/21, Pool # 1669................................ 90
</TABLE>
Continued
68
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Intermediate Government Obligations Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 111 9.50%, 10/20/21, Pool # 21705.............................. $ 119
31 9.50%, 8/20/22, Pool # 73.................................. 33
158 9.50%, 12/20/22, Pool # 2988............................... 169
--------
10,317
--------
Total Mortgage Pass Thrus 25,601
--------
U.S. Government Agency Securities (2.9%):
Federal Home Loan Mortgage Corp. (2.6%):
5,000 7.44%, 9/20/06, Callable 9/20/01 @ 100..................... 5,179
--------
Guaranteed Export Trust (0.3%):
478 6.61%, 6/15/99, Series 94-D................................ 481
--------
5,660
--------
U.S. Treasury Notes (61.5%):
29,950 5.50%, 12/31/00(b)......................................... 29,770
32,925 6.38%, 3/31/01(b).......................................... 33,532
38,400 6.13%, 12/31/01............................................ 38,893
14,675 6.88%, 5/15/06(b).......................................... 15,699
--------
117,894
--------
U.S. Treasury Strips (7.4%):
5,700 0.00%, 5/15/99............................................. 5,280
10,100 0.00%, 2/15/00............................................. 8,966
--------
14,246
--------
Total Government Obligations 163,401
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
ASSET BACKED SECURITIES (1.6%):
$ 3,104 General Electric Capital Services, Inc., 7.50%, 5/25/20.... $ 3,120
--------
Total Asset Backed Securities 3,120
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (11.4%):
Government Agency Backed CMO's (11.4%):
Federal Home Loan Mortgage Corp. (1.6%):
3,000 7.50%, 4/15/21, Series 1343--K............................. 3,102
--------
Federal National Mortgage Assoc. (7.1%):
1,472 7.50%, 3/25/21, Series 1992--171 Zc........................ 1,514
2,073 7.75%, 3/25/21, Series 1992-1.............................. 2,165
2,500 8.00%, 9/25/21, Series 1992--117 La........................ 2,599
7,000 7.50%, 8/25/22, Series 1994-93............................. 7,303
--------
13,581
--------
Ryland Acceptance Corp. (2.7%):
4,930 9.00%, 7/1/16.............................................. 5,263
--------
Total Collateralized Mortgage Obigations 21,946
--------
Total (Cost--$188,104)(a) $188,894
--------
</TABLE>
- -------
Percentages indicated are based on net assets of $192,152.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows :
Unrealized appreciation........................................ $ 937
Unrealized depreciation........................................ (147)
-----
Net unrealized appreciation.................................... $ 790
=====
(b) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
69
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (0.8%):
$ 1,955 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $2,392
Federal Home Loan Mortgage Corp., 6.45%, 3/15/24, market
value--$1,994).......................................... $ 1,955
--------
Total Repurchase Agreements 1,955
--------
GOVERNMENT OBLIGATIONS (76.2%):
U.S. Agency Debentures (11.6%)
13,000 5.88%, 2/2/06(b)......................................... 12,855
4,530 6.82%, 8/23/05........................................... 4,740
5,000 7.35%, 3/28/05........................................... 5,394
4,940 7.88%, 2/24/05........................................... 5,474
--------
28,463
--------
U.S. Treasury Notes (6.7%):
15,300 6.88%, 5/15/06(b)........................................ 16,367
--------
Total U.S. Treasury Notes 16,367
--------
U.S. Treasury Strip (2.4%):
10,500 0.00%, 2/15/08........................................... 5,835
--------
Total U.S. Treasury Strip 5,835
--------
Mortgage Pass Thrus (55.5%):
Federal Home Loan Mortgage Corp. (13.2%):
91 8.00%, 9/1/02............................................ 93
34 8.00%, 9/1/03............................................ 35
17 8.00%, 4/1/07............................................ 18
2 8.00%, 12/1/08........................................... 2
51 8.00%, 7/1/09............................................ 53
665 8.00%, 2/1/17............................................ 694
1,363 8.00%, 3/1/17............................................ 1,424
306 8.00%, 4/1/17............................................ 320
434 8.00%, 5/1/17............................................ 454
603 8.00%, 6/1/17............................................ 630
46 8.00%, 11/1/19........................................... 48
159 8.00%, 3/1/22............................................ 166
122 8.25%, 8/1/17............................................ 128
37 8.50%, 4/1/01............................................ 38
324 8.50%, 3/1/06............................................ 337
412 8.50%, 9/1/17............................................ 434
43 8.50%, 11/1/18........................................... 45
548 8.50%, 1/1/22............................................ 577
2,468 8.50%, 4/1/26............................................ 2,589
28 8.75%, 8/1/07............................................ 29
19 8.75%, 6/1/16............................................ 20
112 8.75%, 8/1/16............................................ 118
174 8.75%, 9/1/16............................................ 183
124 8.75%, 1/1/17............................................ 131
347 8.75%, 2/1/17............................................ 365
46 8.75%, 3/1/17............................................ 48
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
$ 554 8.75%, 5/1/17.............................................. $ 584
114 8.75%, 7/1/17.............................................. 120
54 8.75%, 8/1/17.............................................. 57
444 9.00%, 7/1/01.............................................. 464
84 9.00%, 8/1/01.............................................. 88
239 9.00%, 9/1/01.............................................. 249
17 9.00%, 7/1/02.............................................. 17
62 9.00%, 8/1/02.............................................. 65
85 9.00%, 9/1/02.............................................. 89
152 9.00%, 4/1/03.............................................. 158
17 9.00%, 5/1/03.............................................. 18
44 9.00%, 5/1/04.............................................. 46
13 9.00%, 6/1/04.............................................. 13
115 9.00%, 7/1/04.............................................. 121
62 9.00%, 8/1/04.............................................. 64
58 9.00%, 9/1/04.............................................. 60
70 9.00%, 1/1/05.............................................. 73
214 9.00%, 2/1/05.............................................. 223
405 9.00%, 3/1/05.............................................. 423
107 9.00%, 8/1/05.............................................. 111
50 9.00%, 4/1/06.............................................. 52
80 9.00%, 6/1/09.............................................. 86
141 9.00%, 9/1/09.............................................. 151
288 9.00%, 11/1/09............................................. 309
76 9.00%, 2/1/10.............................................. 80
1,378 9.00%, 6/1/14.............................................. 1,477
57 9.00%, 4/1/16.............................................. 61
182 9.00%, 5/1/16.............................................. 195
99 9.00%, 6/1/16.............................................. 104
449 9.00%, 7/1/16.............................................. 481
296 9.00%, 10/1/16............................................. 317
526 9.00%, 11/1/16............................................. 564
711 9.00%, 12/1/16............................................. 762
510 9.00%, 1/1/17.............................................. 546
198 9.00%, 8/1/17.............................................. 212
604 9.00%, 9/1/20.............................................. 647
122 9.25%, 8/1/13.............................................. 131
58 9.25%, 8/1/16.............................................. 62
36 9.25%, 3/1/17.............................................. 39
61 9.25%, 11/1/19............................................. 66
34 9.50%, 3/1/01.............................................. 36
11 9.50%, 5/1/01.............................................. 11
29 9.50%, 7/1/01.............................................. 30
121 9.50%, 9/1/02.............................................. 128
16 9.50%, 10/1/02............................................. 17
28 9.50%, 11/1/02............................................. 30
86 9.50%, 12/1/02............................................. 91
179 9.50%, 1/1/03.............................................. 189
</TABLE>
Continued
70
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
$ 485 9.50%, 2/1/03.............................................. $ 512
55 9.50%, 5/1/03.............................................. 58
97 9.50%, 6/1/03.............................................. 102
29 9.50%, 8/1/03.............................................. 31
72 9.50%, 10/1/03............................................. 76
39 9.50%, 11/1/03............................................. 41
97 9.50%, 7/1/04.............................................. 102
102 9.50%, 9/1/04.............................................. 108
372 9.50%, 1/1/05.............................................. 392
224 9.50%, 4/1/05.............................................. 236
72 9.50%, 5/1/05.............................................. 76
30 9.50%, 7/1/05.............................................. 32
235 9.50%, 11/1/05............................................. 248
419 9.50%, 5/1/06.............................................. 442
219 9.50%, 7/1/16.............................................. 235
166 9.50%, 9/1/16.............................................. 179
23 9.50%, 11/1/16............................................. 25
63 9.50%, 7/1/19.............................................. 67
176 9.50%, 5/1/20.............................................. 189
145 9.50%, 8/1/20.............................................. 156
1,184 9.50%, 10/1/20............................................. 1,277
189 9.50%, 3/1/21.............................................. 204
1,011 9.50%, 12/1/22............................................. 1,089
418 9.75%, 11/1/08............................................. 452
246 9.75%, 12/1/08............................................. 265
122 9.75%, 4/1/09.............................................. 132
174 9.75%, 11/1/17............................................. 188
198 10.00%, 7/1/00............................................. 210
70 10.00%, 12/1/00............................................ 73
24 10.00%, 2/1/01............................................. 25
129 10.00%, 10/1/02............................................ 136
64 10.00%, 11/1/02............................................ 68
146 10.00%, 9/1/03............................................. 154
183 10.00%, 10/1/03............................................ 193
21 10.00%, 11/1/03............................................ 22
64 10.00%, 12/1/03............................................ 68
34 10.00%, 2/1/04............................................. 35
117 10.00%, 3/1/04............................................. 123
98 10.00%, 4/1/04............................................. 103
126 10.00%, 5/1/04............................................. 133
69 10.00%, 6/1/05............................................. 73
15 10.00%, 2/1/09............................................. 16
3 10.00%, 4/1/15............................................. 3
619 10.00%, 9/1/16............................................. 671
202 10.50%, 7/1/00............................................. 213
212 10.50%, 10/1/00............................................ 224
423 10.50%, 11/1/00............................................ 447
138 10.50%, 12/1/00............................................ 145
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Federal Home Loan Mortgage Corp., continued:
$ 132 10.50%, 11/1/02............................................ $ 140
6 11.50%, 3/1/99............................................. 7
58 11.50%, 7/1/99............................................. 62
9 11.50%, 9/1/99............................................. 10
1 11.50%, 1/1/00............................................. 1
200 11.50%, 5/1/00............................................. 213
9 11.50%, 7/1/00............................................. 9
50 11.50%, 10/1/00............................................ 53
48 11.50%, 11/1/00............................................ 51
7 11.50%, 12/1/00............................................ 8
57 11.50%, 1/1/01............................................. 61
49 11.75%, 1/1/13............................................. 56
40 11.75%, 6/1/14............................................. 45
87 11.75%, 5/1/15............................................. 99
8 12.00%, 11/1/99............................................ 8
3 12.00%, 12/1/99............................................ 3
60 12.00%, 1/1/00............................................. 64
141 12.00%, 3/1/00............................................. 151
238 12.00%, 4/1/00............................................. 255
34 12.00%, 5/1/00............................................. 36
13 12.00%, 6/1/00............................................. 14
22 12.00%, 7/1/00............................................. 24
21 12.00%, 9/1/00............................................. 23
32 12.00%, 11/1/00............................................ 34
44 12.00%, 11/1/01............................................ 47
1,335 12.25%, 8/1/15............................................. 1,541
22 12.50%, 7/1/99............................................. 23
9 12.50%, 8/1/99............................................. 10
86 12.50%, 10/1/99............................................ 92
17 12.50%, 11/1/99............................................ 18
23 12.50%, 6/1/00............................................. 25
19 12.50%, 7/1/00............................................. 21
54 12.50%, 4/1/01............................................. 58
9 12.50%, 1/1/13............................................. 10
Federal National Mortgage Assoc. (6.2%):
500 7.50%, 5/25/19............................................. 507
1,950 7.75%, 3/25/21............................................. 2,036
56 8.00%, 12/1/05............................................. 59
494 8.00%, 12/1/17............................................. 513
1,561 8.00%, 2/25/22............................................. 1,663
464 8.00%, 2/1/23.............................................. 482
261 8.00%, 3/1/23.............................................. 271
39 8.50%, 3/1/02.............................................. 41
1,410 8.50%, 9/1/07.............................................. 1,485
98 8.50%, 12/1/08............................................. 104
1,340 8.50%, 2/1/09.............................................. 1,411
723 8.50%, 11/1/21............................................. 761
357 8.50%, 9/1/23.............................................. 376
</TABLE>
Continued
71
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Federal National Mortgage Assoc., continued:
$ 342 9.00%, 6/1/09.............................................. $ 366
130 9.00%, 12/1/16............................................. 139
53 9.00%, 2/1/17.............................................. 57
370 9.00%, 10/1/19............................................. 397
136 9.25%, 6/1/10.............................................. 146
52 9.50%, 1/1/10.............................................. 56
29 9.50%, 5/1/10.............................................. 31
28 9.50%, 8/1/11.............................................. 31
99 9.50%, 7/1/16.............................................. 106
238 10.00%, 6/1/21............................................. 259
115 10.50%, 9/1/00............................................. 122
36 10.50%, 10/1/00............................................ 39
48 10.50%, 11/1/00............................................ 51
37 10.50%, 12/1/00............................................ 40
15 10.50%, 1/1/01............................................. 16
89 10.50%, 2/1/01............................................. 95
7 10.50%, 6/1/01............................................. 7
38 10.50%, 8/1/01............................................. 41
45 10.50%, 1/1/04............................................. 47
21 10.50%, 2/1/04............................................. 23
92 10.50%, 5/1/04............................................. 98
112 11.00%, 8/1/00............................................. 119
62 11.00%, 10/1/00............................................ 66
61 11.00%, 11/1/00............................................ 65
36 11.00%, 12/1/00............................................ 38
57 11.00%, 1/1/01............................................. 61
6 11.00%, 2/1/01............................................. 6
88 11.00%, 6/1/01............................................. 93
221 11.00%, 9/1/06............................................. 234
70 11.25%, 6/1/13............................................. 79
82 11.25%, 5/1/14............................................. 92
167 11.25%, 12/1/15............................................ 187
4 11.50%, 11/1/98............................................ 4
4 11.50%, 12/1/98............................................ 4
17 11.50%, 11/1/99............................................ 18
25 11.50%, 2/1/00............................................. 27
6 11.50%, 3/1/00............................................. 7
17 11.50%, 6/1/00............................................. 18
36 11.50%, 8/1/00............................................. 39
27 11.50%, 9/1/00............................................. 29
24 11.50%, 11/1/00............................................ 26
19 11.50%, 12/1/00............................................ 21
11 11.50%, 1/1/01............................................. 12
56 11.50%, 2/1/01............................................. 61
3 12.00%, 1/1/99............................................. 3
10 12.00%, 7/1/99............................................. 11
1 12.00%, 10/1/99............................................ 1
18 12.00%, 4/1/00............................................. 20
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<S> <C> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Federal National Mortgage Assoc., continued:
$ 42 12.00%, 5/1/00............................................. $ 46
42 12.00%, 7/1/00............................................. 46
56 12.00%, 8/1/00............................................. 61
27 12.00%, 9/1/00............................................. 29
69 12.00%, 10/1/00............................................ 74
21 12.50%, 2/1/00............................................. 23
8 12.50%, 4/1/00............................................. 9
61 12.50%, 6/1/00............................................. 67
90 12.50%, 7/1/00............................................. 98
99 12.50%, 8/1/03............................................. 108
1,134 12.50%, 5/1/15............................................. 1,311
Government National Mortgage Assoc. (36.1%):
526 6.50%, 11/15/23............................................ 524
175 6.50%, 12/15/23............................................ 173
128 7.00%, 6/20/17............................................. 130
67 7.00%, 10/15/22............................................ 68
72 7.00%, 3/15/23............................................. 73
134 7.00%, 6/15/23............................................. 136
127 7.00%, 6/20/23............................................. 129
25 7.00%, 8/15/23............................................. 25
19 7.00%, 8/20/23............................................. 19
740 7.00%, 10/15/23............................................ 750
33 7.00%, 11/15/23............................................ 33
610 7.50%, 1/20/17............................................. 630
50 7.50%, 5/15/22............................................. 51
23 7.50%, 5/20/22............................................. 24
21 7.50%, 9/20/22............................................. 21
35 7.50%, 10/15/22............................................ 36
115 7.50%, 12/15/22............................................ 119
74 7.50%, 2/15/23............................................. 76
372 7.50%, 4/15/23............................................. 382
41 7.50%, 7/15/23............................................. 42
222 7.50%, 9/15/23............................................. 227
28 7.50%, 10/15/23............................................ 29
167 7.50%, 12/15/23............................................ 172
233 8.00%, 4/15/17............................................. 245
264 8.00%, 5/15/17............................................. 277
90 8.00%, 4/20/18............................................. 93
26 8.00%, 10/15/21............................................ 27
373 8.00%, 12/15/21............................................ 391
18 8.00%, 1/15/22............................................. 19
196 8.00%, 2/20/22............................................. 204
79 8.00%, 4/15/22............................................. 83
638 8.00%, 7/20/22............................................. 662
406 8.00%, 8/15/22............................................. 427
250 8.00%, 5/15/23............................................. 262
35 8.00%, 5/20/23............................................. 36
16 8.00%, 7/20/23............................................. 17
</TABLE>
Continued
72
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 311 8.00%, 9/20/23............................................. $ 323
678 8.00%, 10/20/23............................................ 703
121 8.00%, 11/20/23............................................ 126
18 8.00%, 5/20/24............................................. 18
78 8.25%, 1/15/05............................................. 83
68 8.25%, 3/15/06............................................. 72
77 8.25%, 4/15/06............................................. 81
155 8.25%, 5/15/06............................................. 164
123 8.25%, 7/15/06............................................. 130
116 8.25%, 6/15/08............................................. 123
109 8.25%, 7/15/08............................................. 116
1,283 8.25%, 6/15/16............................................. 1,356
12 8.50%, 6/15/05............................................. 13
34 8.50%, 10/15/05............................................ 36
214 8.50%, 1/15/06............................................. 228
167 8.50%, 7/15/08............................................. 178
540 8.50%, 3/20/17............................................. 571
534 8.50%, 5/20/17............................................. 565
20 8.50%, 8/15/20............................................. 21
157 8.50%, 5/15/21............................................. 167
106 8.50%, 6/15/21............................................. 113
13 8.50%, 7/15/21............................................. 14
38 8.50%, 8/15/21............................................. 41
148 8.50%, 11/15/21............................................ 157
160 8.50%, 12/15/21............................................ 171
251 8.50%, 1/15/22............................................. 268
24 8.50%, 2/15/22............................................. 25
182 8.50%, 3/15/22............................................. 194
81 8.50%, 6/15/22............................................. 87
14 8.50%, 7/15/22............................................. 15
28 8.50%, 8/15/22............................................. 29
120 8.50%, 9/15/22............................................. 127
8 8.50%, 10/15/22............................................ 9
20 8.50%, 11/15/22............................................ 21
106 8.50%, 7/20/23............................................. 112
20 8.50%, 9/15/24............................................. 21
327 8.75%, 8/15/08............................................. 352
464 8.75%, 12/15/16............................................ 499
263 8.75%, 6/15/17............................................. 283
33 9.00%, 10/15/04............................................ 35
77 9.00%, 11/15/04............................................ 82
146 9.00%, 12/15/04............................................ 156
96 9.00%, 1/15/05............................................. 102
83 9.00%, 2/15/05............................................. 88
65 9.00%, 3/15/05............................................. 69
31 9.00%, 10/15/06............................................ 33
481 9.00%, 9/15/08............................................. 514
555 9.00%, 10/15/08............................................ 594
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 96 9.00%, 11/15/08............................................ $ 103
689 9.00%, 12/15/08............................................ 737
34 9.00%, 1/15/09............................................. 36
228 9.00%, 2/15/09............................................. 244
526 9.00%, 3/15/09............................................. 562
153 9.00%, 4/15/09............................................. 163
251 9.00%, 5/15/09............................................. 268
143 9.00%, 6/15/09............................................. 153
17 9.00%, 8/15/09............................................. 18
112 9.00%, 1/15/10............................................. 119
101 9.00%, 10/15/10............................................ 108
202 9.00%, 11/15/10............................................ 216
67 9.00%, 4/15/16............................................. 72
58 9.00%, 6/15/16............................................. 62
75 9.00%, 7/15/16............................................. 80
24 9.00%, 7/20/16............................................. 25
1,117 9.00%, 8/20/16............................................. 1,186
62 9.00%, 10/15/16............................................ 67
76 9.00%, 1/15/17............................................. 81
65 9.00%, 7/15/17............................................. 70
32 9.00%, 4/15/18............................................. 34
7 9.00%, 7/15/18............................................. 8
130 9.00%, 11/15/19............................................ 139
93 9.00%, 12/15/19............................................ 100
26 9.00%, 1/15/20............................................. 28
40 9.00%, 1/20/20............................................. 43
67 9.00%, 2/15/20............................................. 72
58 9.00%, 3/15/20............................................. 62
26 9.00%, 4/15/20............................................. 28
47 9.00%, 5/15/20............................................. 50
60 9.00%, 11/15/20............................................ 64
44 9.00%, 4/1/21.............................................. 47
131 9.00%, 12/20/21............................................ 142
265 9.00%, 1/20/22............................................. 281
354 9.00%, 8/20/22............................................. 376
308 9.00%, 9/20/22............................................. 327
402 9.00%, 12/15/22............................................ 430
52 9.25%, 5/15/16............................................. 56
24 9.25%, 6/15/16............................................. 26
50 9.25%, 7/15/16............................................. 54
135 9.25%, 8/15/16............................................. 146
28 9.25%, 9/15/16............................................. 31
26 9.25%, 10/15/16............................................ 28
86 9.25%, 11/15/16............................................ 94
325 9.25%, 12/15/16............................................ 353
149 9.25%, 12/20/16............................................ 161
42 9.25%, 3/15/17............................................. 45
262 9.25%, 6/15/17............................................. 285
</TABLE>
Continued
73
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 499 9.25%, 7/15/17............................................. $ 542
167 9.25%, 9/15/17............................................. 181
157 9.25%, 1/15/18............................................. 170
31 9.25%, 10/15/19............................................ 34
89 9.25%, 12/15/19............................................ 96
79 9.25%, 2/15/20............................................. 86
76 9.25%, 4/15/21............................................. 82
98 9.25%, 5/15/21............................................. 106
923 9.50%, 6/15/09............................................. 998
1,535 9.50%, 7/15/09............................................. 1,661
1,970 9.50%, 8/15/09............................................. 2,132
2,453 9.50%, 9/15/09............................................. 2,654
3,382 9.50%, 10/15/09............................................ 3,659
923 9.50%, 11/15/09............................................ 999
647 9.50%, 12/15/09............................................ 700
171 9.50%, 4/15/13............................................. 185
62 9.50%, 7/15/13............................................. 67
7 9.50%, 11/15/15............................................ 8
122 9.50%, 2/15/16............................................. 132
297 9.50%, 3/15/16............................................. 321
380 9.50%, 4/15/16............................................. 411
724 9.50%, 5/15/16............................................. 783
869 9.50%, 6/15/16............................................. 940
418 9.50%, 7/15/16............................................. 453
374 9.50%, 8/15/16............................................. 405
566 9.50%, 9/15/16............................................. 612
151 9.50%, 10/15/16............................................ 164
143 9.50%, 11/15/16............................................ 155
255 9.50%, 12/15/16............................................ 276
202 9.50%, 1/15/17............................................. 219
53 9.50%, 2/15/17............................................. 57
76 9.50%, 3/15/17............................................. 83
83 9.50%, 4/15/17............................................. 89
300 9.50%, 6/15/17............................................. 325
227 9.50%, 7/15/17............................................. 245
411 9.50%, 8/15/17............................................. 445
717 9.50%, 9/15/17............................................. 775
284 9.50%, 10/15/17............................................ 307
28 9.50%, 11/15/17............................................ 31
57 9.50%, 12/15/17............................................ 62
40 9.50%, 1/15/18............................................. 43
81 9.50%, 2/15/18............................................. 88
28 9.50%, 3/15/18............................................. 30
235 9.50%, 4/15/18............................................. 254
187 9.50%, 5/15/18............................................. 203
242 9.50%, 6/15/18............................................. 261
190 9.50%, 7/15/18............................................. 206
328 9.50%, 8/15/18............................................. 355
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 191 9.50%, 9/15/18............................................. $ 206
29 9.50%, 10/15/18............................................ 32
45 9.50%, 11/15/18............................................ 49
236 9.50%, 12/15/18............................................ 255
98 9.50%, 1/15/19............................................. 106
219 9.50%, 2/15/19............................................. 237
53 9.50%, 3/15/19............................................. 58
77 9.50%, 4/15/19............................................. 84
56 9.50%, 8/15/19............................................. 61
44 9.50%, 9/15/19............................................. 48
28 9.50%, 10/15/19............................................ 30
132 9.50%, 11/15/19............................................ 143
85 9.50%, 12/15/19............................................ 92
34 9.50%, 1/15/20............................................. 37
42 9.50%, 2/15/20............................................. 46
92 9.50%, 3/15/20............................................. 100
16 9.50%, 4/15/20............................................. 17
158 9.50%, 5/15/20............................................. 171
59 9.50%, 6/15/20............................................. 64
13 9.50%, 7/15/20............................................. 14
126 9.50%, 8/15/20............................................. 136
16 9.50%, 9/15/20............................................. 18
69 9.50%, 10/15/20............................................ 75
70 9.50%, 11/15/20............................................ 76
248 9.50%, 2/15/21............................................. 269
793 9.50%, 4/15/21............................................. 858
106 9.50%, 5/15/21............................................. 115
76 9.50%, 6/15/21............................................. 82
58 9.50%, 7/15/21............................................. 63
19 9.50%, 8/15/21............................................. 20
519 9.50%, 11/15/21............................................ 561
38 9.50%, 5/15/22............................................. 41
56 10.00%, 9/20/00............................................ 60
26 10.00%, 11/20/00........................................... 28
64 10.00%, 4/20/01............................................ 70
39 10.00%, 1/20/03............................................ 43
35 10.00%, 6/20/04............................................ 38
98 10.00%, 10/20/04........................................... 106
1 10.50%, 3/15/98............................................ 1
2 10.50%, 4/15/98............................................ 2
8 10.50%, 5/15/98............................................ 8
6 10.50%, 6/15/98............................................ 6
5 10.50%, 8/15/98............................................ 5
6 10.50%, 9/15/98............................................ 6
6 10.50%, 11/15/98........................................... 6
4 10.50%, 2/15/99............................................ 4
10 10.50%, 9/15/99............................................ 10
26 10.50%, 9/15/00............................................ 27
</TABLE>
Continued
74
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 31 10.50%, 10/15/00........................................... $ 33
85 10.50%, 10/20/00........................................... 90
144 10.50%, 11/15/00........................................... 153
23 10.50%, 12/15/00........................................... 25
3 10.50%, 1/15/01............................................ 3
13 10.50%, 2/15/01............................................ 14
86 10.50%, 2/20/01............................................ 91
34 10.50%, 8/15/01............................................ 36
10 10.50%, 4/15/03............................................ 11
76 10.50%, 11/15/03........................................... 78
57 10.50%, 4/20/04............................................ 60
81 10.50%, 7/15/04............................................ 87
141 10.50%, 9/15/04............................................ 150
46 10.50%, 12/20/04........................................... 49
1 11.00%, 4/15/98............................................ 1
3 11.00%, 9/15/98............................................ 4
20 11.00%, 11/15/98........................................... 21
16 11.00%, 12/15/98........................................... 17
4 11.00%, 2/15/99............................................ 4
5 11.00%, 5/15/99............................................ 5
14 11.00%, 4/15/00............................................ 15
152 11.00%, 5/15/00............................................ 161
78 11.00%, 6/15/00............................................ 83
8 11.00%, 7/15/00............................................ 9
42 11.00%, 8/15/00............................................ 45
175 11.00%, 9/15/00............................................ 186
9 11.00%, 10/15/00........................................... 9
165 11.00%, 11/15/00........................................... 176
203 11.00%, 12/15/00........................................... 216
166 11.00%, 1/15/01............................................ 177
22 11.00%, 1/20/01............................................ 23
68 11.00%, 2/15/01............................................ 72
6 11.00%, 3/20/01............................................ 7
97 11.00%, 3/15/04............................................ 104
50 11.00%, 6/15/04............................................ 53
92 11.00%, 8/15/04............................................ 98
18 11.50%, 1/15/99............................................ 19
7 11.50%, 6/15/99............................................ 7
7 11.50%, 7/15/99............................................ 7
34 11.50%, 9/15/99............................................ 36
15 11.50%, 1/20/00............................................ 16
17 11.50%, 2/15/00............................................ 18
44 11.50%, 3/15/00............................................ 47
14 11.50%, 4/15/00............................................ 15
75 11.50%, 5/15/00............................................ 79
1 11.50%, 6/15/00............................................ 1
20 11.50%, 7/15/00............................................ 21
4 11.50%, 12/15/00........................................... 4
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 121 11.50%, 6/20/04............................................ $ 136
17 11.50%, 3/15/11............................................ 19
14 11.50%, 4/15/13............................................ 16
2 11.50%, 5/15/13............................................ 3
43 11.50%, 6/15/13............................................ 48
34 11.50%, 8/15/13............................................ 39
74 11.50%, 8/15/14............................................ 84
30 11.50%, 10/15/14........................................... 34
4 11.50%, 5/15/15............................................ 5
4 11.50%, 12/15/15........................................... 5
1 11.75%, 9/15/98............................................ 1
8 11.75%, 10/15/98........................................... 9
1 11.75%, 11/15/98........................................... 1
13 11.75%, 12/15/98........................................... 14
8 11.75%, 3/15/99............................................ 9
45 11.75%, 4/15/99............................................ 49
113 11.75%, 5/15/99............................................ 123
2 12.00%, 9/15/98............................................ 2
26 12.00%, 10/15/98........................................... 28
14 12.00%, 11/15/98........................................... 15
20 12.00%, 1/15/99............................................ 21
3 12.00%, 2/15/99............................................ 3
8 12.00%, 3/15/99............................................ 9
17 12.00%, 5/15/99............................................ 18
1 12.00%, 5/20/99............................................ 1
12 12.00%, 7/20/99............................................ 12
5 12.00%, 8/20/99............................................ 5
90 12.00%, 5/15/00............................................ 96
116 12.00%, 6/15/00............................................ 123
28 12.00%, 6/20/00............................................ 30
14 12.00%, 7/15/00............................................ 15
24 12.00%, 7/20/00............................................ 26
36 12.00%, 8/20/00............................................ 38
12 12.00%, 10/15/00........................................... 13
39 12.00%, 8/15/12............................................ 45
134 12.00%, 11/15/12........................................... 155
265 12.00%, 12/15/12........................................... 305
110 12.00%, 1/15/13............................................ 126
49 12.00%, 2/15/13............................................ 56
14 12.00%, 3/15/13............................................ 16
8 12.00%, 4/15/13............................................ 9
1 12.00%, 5/15/13............................................ 1
72 12.00%, 8/15/13............................................ 82
44 12.00%, 9/15/13............................................ 51
50 12.00%, 11/15/13........................................... 57
8 12.00%, 12/15/13........................................... 9
97 12.00%, 1/15/14............................................ 112
89 12.00%, 2/15/14............................................ 103
</TABLE>
Continued
75
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 184 12.00%, 3/15/14............................................ $ 211
57 12.00%, 4/15/14............................................ 65
227 12.00%, 5/15/14............................................ 262
44 12.00%, 6/15/14............................................ 51
39 12.00%, 9/15/14............................................ 45
61 12.00%, 12/15/14........................................... 71
116 12.00%, 1/15/15............................................ 133
278 12.00%, 2/15/15............................................ 319
283 12.00%, 3/15/15............................................ 325
441 12.00%, 4/15/15............................................ 507
425 12.00%, 5/15/15............................................ 489
500 12.00%, 6/15/15............................................ 575
320 12.00%, 7/15/15............................................ 368
115 12.00%, 8/15/15............................................ 132
109 12.00%, 9/15/15............................................ 126
57 12.00%, 10/15/15........................................... 66
26 12.00%, 12/15/15........................................... 30
77 12.00%, 1/15/16............................................ 88
59 12.00%, 5/15/18............................................ 68
204 12.50%, 4/15/10............................................ 237
198 12.50%, 5/15/10............................................ 230
262 12.50%, 6/15/10............................................ 305
39 12.50%, 7/15/10............................................ 45
10 12.50%, 8/15/10............................................ 11
145 12.50%, 9/15/10............................................ 168
135 12.50%, 10/15/10........................................... 156
490 12.50%, 11/15/10........................................... 570
999 12.50%, 12/15/10........................................... 1,162
214 12.50%, 1/15/11............................................ 249
2 12.50%, 2/15/11............................................ 2
17 12.50%, 3/15/11............................................ 20
38 12.50%, 8/15/11............................................ 44
41 12.50%, 10/15/11........................................... 48
2 12.50%, 4/15/12............................................ 2
32 12.50%, 3/15/13............................................ 37
242 12.50%, 10/15/13........................................... 281
33 12.50%, 10/20/13........................................... 39
176 12.50%, 11/15/13........................................... 204
27 12.50%, 11/20/13........................................... 31
101 12.50%, 12/15/13........................................... 117
33 12.50%, 12/20/13........................................... 38
137 12.50%, 1/15/14............................................ 159
82 12.50%, 3/15/14............................................ 96
99 12.50%, 4/15/14............................................ 115
23 12.50%, 4/20/14............................................ 27
286 12.50%, 5/15/14............................................ 333
284 12.50%, 6/15/14............................................ 330
96 12.50%, 6/20/14............................................ 111
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 178 12.50%, 7/15/14............................................ $ 207
23 12.50%, 7/20/14............................................ 27
14 12.50%, 8/15/14............................................ 17
38 12.50%, 8/20/14............................................ 44
9 12.50%, 9/15/14............................................ 10
19 12.50%, 9/20/14............................................ 22
35 12.50%, 10/15/14........................................... 41
59 12.50%, 10/20/14........................................... 68
44 12.50%, 11/15/14........................................... 51
62 12.50%, 11/20/14........................................... 72
135 12.50%, 12/15/14........................................... 157
411 12.50%, 1/15/15............................................ 478
37 12.50%, 1/20/15............................................ 43
219 12.50%, 2/15/15............................................ 255
94 12.50%, 3/15/15............................................ 110
216 12.50%, 4/15/15............................................ 251
68 12.50%, 5/15/15............................................ 79
107 12.50%, 5/20/15............................................ 124
40 12.50%, 6/15/15............................................ 47
31 12.50%, 6/20/15............................................ 36
21 12.50%, 7/15/15............................................ 24
39 12.50%, 7/20/15............................................ 45
17 12.50%, 8/15/15............................................ 20
38 12.50%, 9/20/15............................................ 44
91 12.50%, 10/15/15........................................... 106
11 12.50%, 11/20/15........................................... 12
54 12.50%, 1/20/16............................................ 62
51 12.75%, 9/20/13............................................ 59
106 12.75%, 11/20/13........................................... 123
6 12.75%, 12/20/13........................................... 7
46 12.75%, 3/20/14............................................ 54
3 12.75%, 8/20/14............................................ 4
3 12.75%, 10/20/14........................................... 4
96 12.75%, 12/20/14........................................... 112
1 12.75%, 7/20/15............................................ 2
31 13.00%, 11/15/10........................................... 36
77 13.00%, 12/15/10........................................... 89
135 13.00%, 1/15/11............................................ 158
212 13.00%, 2/15/11............................................ 249
96 13.00%, 3/15/11............................................ 112
436 13.00%, 4/15/11............................................ 512
10 13.00%, 5/15/11............................................ 12
16 13.00%, 7/15/11............................................ 19
4 13.00%, 8/15/11............................................ 4
2 13.00%, 10/15/11........................................... 2
32 13.00%, 1/15/12............................................ 38
44 13.00%, 2/15/12............................................ 51
11 13.00%, 5/15/12............................................ 13
</TABLE>
Continued
76
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 1 13.00%, 8/15/12............................................ $ 1
58 13.00%, 9/15/12............................................ 67
25 13.00%, 10/15/12........................................... 30
110 13.00%, 11/15/12........................................... 129
73 13.00%, 12/15/12........................................... 85
192 13.00%, 9/15/13............................................ 225
10 13.00%, 9/20/13............................................ 12
198 13.00%, 10/15/13........................................... 232
93 13.00%, 10/20/13........................................... 107
55 13.00%, 6/15/14............................................ 64
166 13.00%, 7/15/14............................................ 194
237 13.00%, 8/15/14............................................ 275
86 13.00%, 9/15/14............................................ 100
193 13.00%, 10/15/14........................................... 223
82 13.00%, 10/20/14........................................... 95
132 13.00%, 11/15/14........................................... 153
110 13.00%, 12/15/14........................................... 130
121 13.00%, 12/20/14........................................... 141
33 13.00%, 1/15/15............................................ 39
45 13.00%, 3/15/15............................................ 53
8 13.00%, 5/15/15............................................ 10
98 13.00%, 6/15/15............................................ 115
13 13.00%, 6/20/15............................................ 15
282 13.50%, 5/15/10............................................ 335
160 13.50%, 6/15/10............................................ 190
123 13.50%, 7/15/10............................................ 146
25 13.50%, 8/15/10............................................ 30
41 13.50%, 9/15/10............................................ 49
65 13.50%, 4/15/11............................................ 77
355 13.50%, 5/15/11............................................ 422
13 13.50%, 8/15/11............................................ 15
13 13.50%, 9/15/11............................................ 16
8 13.50%, 2/15/12............................................ 10
173 13.50%, 10/15/12........................................... 206
213 13.50%, 11/15/12........................................... 254
27 13.50%, 12/15/12........................................... 33
143 13.50%, 7/15/14............................................ 170
2 13.50%, 7/20/14............................................ 3
441 13.50%, 8/15/14............................................ 525
3 13.50%, 8/20/14............................................ 3
503 13.50%, 9/15/14............................................ 599
121 13.50%, 9/20/14............................................ 142
158 13.50%, 10/15/14........................................... 188
91 13.50%, 10/20/14........................................... 107
105 13.50%, 11/15/14........................................... 125
61 13.50%, 11/20/14........................................... 72
14 13.50%, 12/15/14........................................... 17
11 13.50%, 12/20/14........................................... 13
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 5 13.50%, 1/15/15............................................ $ 6
14 13.50%, 1/20/15............................................ 17
35 13.50%, 2/15/15............................................ 42
24 13.50%, 3/20/15............................................ 28
8 13.50%, 4/15/15............................................ 10
47 13.50%, 4/20/15............................................ 55
36 13.50%, 5/20/15............................................ 43
5 13.50%, 6/20/15............................................ 6
190 14.00%, 5/15/11............................................ 229
1,299 14.00%, 6/15/11............................................ 1,567
227 14.00%, 7/15/11............................................ 274
37 14.00%, 2/15/12............................................ 45
2 14.00%, 3/15/12............................................ 3
1 14.00%, 4/15/12............................................ 1
20 14.00%, 5/15/12............................................ 24
41 14.00%, 7/15/12............................................ 49
24 14.00%, 8/15/12............................................ 29
134 14.00%, 9/15/12............................................ 162
105 14.00%, 10/15/12........................................... 126
62 14.00%, 7/15/14............................................ 75
86 14.00%, 8/15/14............................................ 104
65 14.00%, 9/15/14............................................ 79
196 14.00%, 10/15/14........................................... 236
99 14.00%, 11/15/14........................................... 120
66 14.00%, 12/15/14........................................... 79
173 14.00%, 2/15/15............................................ 208
22 14.50%, 9/15/12............................................ 26
55 14.50%, 10/15/12........................................... 67
35 14.50%, 8/15/14............................................ 42
74 15.00%, 6/15/11............................................ 92
531 15.00%, 7/15/11............................................ 660
260 15.00%, 8/15/11............................................ 323
508 15.00%, 9/15/11............................................ 631
98 15.00%, 10/15/11........................................... 122
18 15.00%, 11/15/11........................................... 22
97 15.00%, 12/15/11........................................... 120
97 15.00%, 1/15/12............................................ 120
465 15.00%, 2/15/12............................................ 572
190 15.00%, 3/15/12............................................ 236
280 15.00%, 4/15/12............................................ 346
527 15.00%, 5/15/12............................................ 655
445 15.00%, 6/15/12............................................ 554
485 15.00%, 7/15/12............................................ 603
982 15.00%, 8/15/12............................................ 1,217
1,321 15.00%, 9/15/12............................................ 1,638
71 15.00%, 10/15/12........................................... 88
206 15.00%, 11/15/12........................................... 257
114 15.00%, 12/15/12........................................... 142
</TABLE>
Continued
77
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
U.S. Government Income Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
Government National Mortgage Assoc., continued:
$ 69 15.00%, 1/15/13.......................................... $ 86
20 15.00%, 4/15/13.......................................... 25
68 16.00%, 10/15/11......................................... 81
15 16.00%, 11/15/11......................................... 18
1 16.00%, 12/15/11......................................... 2
1 16.00%, 2/15/12.......................................... 1
68 16.00%, 4/15/12.......................................... 81
119 17.00%, 11/15/11......................................... 142
--------
Total Mortgage Pass Thrus 135,608
--------
Total Government Obligations 186,273
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (21.9%):
Government Agency Backed CMO's (21.9%):
435 CityFed Mortgage Trust, 10.00%, 1/1/18 .................. 462
2,019 Drexel Burnham Lambert, Series H, Class 4, 8.50%, 4/1/17
........................................................ 2,130
3,000 Federal Home Loan Mortgage Assoc., 7.00%, 6/15/21, Series
1265J................................................... 3,034
7,000 Federal Home Loan Mortgage Corp., 7.50%, 4/15/21, Series
1343K................................................... 7,238
5,873 Federal Home Loan Mortgage Corp., 7.50%, 9/15/21, Series
1311J................................................... 6,044
5,000 Federal National Mortgage Assoc., 7.35%, 3/25/21, Series
1993-2PH................................................ 5,110
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS, CONTINUED:
Government Agency Backed CMO's, continued:
$ 8,080 Federal National Mortgage Assoc., 7.50%, 3/25/21, Series
1992-171ZC.............................................. $ 8,315
3,100 Federal National Mortgage Assoc., 7.50%, 5/25/21, Series
1992-214PL.............................................. 3,216
3,000 Federal National Mortgage Assoc., 7.50%, 8/25/22, Series
1994-93PH............................................... 3,130
3,421 Federal National Mortgage Assoc., 8.00%, 6/25/21, Series
1992-171ZD.............................................. 3,718
5,360 Federal National Mortgage Assoc., 8.00%, 9/25/21, Series
1992-117LA.............................................. 5,572
1,000 MDC Asset Investors Trust, 7.00%, 2/20/19................ 997
749 Prudential Bache Trust Series 12, Class F, 8.49%,
10/20/20 ............................................... 821
3,000 Security Mortgage Acceptance Corp. II, 9.00%, 12/1/16 ... 3,233
574 Structured Asset Residential Trust, 8.25%, 6/25/19 ...... 624
--------
Total Government Agency Backed CMO's 53,644
--------
Total Collateralized Mortgage Obligations 53,644
--------
Total Investments (Cost--$239,053)(a) 241,872
========
</TABLE>
- -------
Percentages indicated are based on net assets of $244,450.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows :
Unrealized appreciation....................................... $3,128
Unrealized depreciation....................................... (309)
------
Net unrealized appreciation................................... $2,819
======
(b) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
78
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
REPURCHASE AGREEMENTS (5.9%):
$30,685 Goldman Sachs, 6.80%, 1/2/98
(Collateralized by $31,376 various U.S.
Government securities, 6.50-6.70%,
10/15/21-3/15/25, market value--$31,299)................. $ 30,685
--------
Total Repurchase Agreements 30,685
--------
GOVERNMENT OBLIGATIONS (26.2%):
Mortgage Pass Thrus (19.1%):
Federal Home Loan Mortgage Corp. (1.0%):
1,408 9.00%, 5/15/20, Pool #A01002.............................. 1,498
3,211 9.50%, 10/1/20, Pool # A00873............................. 3,461
--------
4,959
--------
Federal National Mortgage Assoc. (10.7%):
2,197 9.00%, 8/1/09, Pool #84251................................ 2,323
3,635 8.25%, 7/1/17, Pool #124439............................... 3,768
32,800 0.37%, 10/15/23(b)........................................ 32,985
3,479 9.00%, 11/1/24, Pool # 280518............................. 3,686
4,228 8.50%, 7/1/25, Pool # 250273.............................. 4,406
865 6.50%, 8/1/27, Pool # 397372.............................. 854
135 6.50%, 9/1/27, Pool # 394026.............................. 134
1,050 6.50%, 9/1/27, Pool # 376766.............................. 1,037
119 6.50%, 10/1/27, Pool # 398938............................. 118
862 6.50%, 10/1/27, Pool # 394035............................. 851
950 6.50%, 12/1/27, Pool # 402609............................. 938
950 6.50%, 11/1/27, Pool # 395819............................. 938
2,000 6.50%, 12/1/27, Pool # 404808............................. 1,974
881 6.50%, 12/1/27, Pool # 403480............................. 869
900 6.50%, 12/1/27, Pool # 398119............................. 888
50 6.50%, 12/1/27, Pool # 406501............................. 49
138 6.50%, 12/1/27, Pool # 404323............................. 137
--------
55,955
--------
Government National Mortgage Assoc. (7.4%):
7,432 7.50%, 4/15/23, Pool # 354563............................. 7,655
3,119 6.50%, 9/15/23, Pool # 358419............................. 3,110
26,873 7.50%, 8/15/25, Pool #780213 ............................. 27,622
--------
38,387
--------
Total Mortgage Pass Thrus 99,301
--------
U.S. Treasuries (7.1%):
U.S. Treasury Notes (7.1%):
14,800 6.00%, 8/15/00(c)......................................... 14,905
700 5.88%, 9/30/02............................................ 704
20,050 6.13%, 8/15/07(c)......................................... 20,600
475 6.38%, 8/15/27............................................ 501
36,710
--------
Total U.S. Treasury 36,710
--------
Total Government Obligations 136,011
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS (60.3%):
Asset Backed Securities (4.8%):
$ 5,211 EQCC Home Equity Loan Trust, 5.73%, 12/15/08.............. $ 5,116
10,000 First USA Credit Card Master Trust, 5.79%*, 10/17/06...... 9,973
4,952 First USA Credit Card Master Trust, 6.11%*, 2/17/10....... 4,952
5,000 MBNA Master Credit Card Trust, 5.78%, 2/15/07............. 4,997
--------
25,038
--------
Euro Dollar (7.9%):
10,000 Credit Foncier de France, 8.00%, 1/14/02.................. 10,475
10,000 ICI Investments, 6.75%, 8/7/02............................ 10,163
15,000 Morgan Guaranty Trust, 6.75%, 5/28/02..................... 15,300
5,000 Sweden Kingdom, 6.75, 5/27/04............................. 5,145
--------
41,083
--------
Financial (12.8%):
7,000 AT&T Capital Corp., 6.41%, 8/13/99........................ 7,000
10,000 Beneficial Corp, 6.39%, 10/7/02........................... 10,025
2,500 Chelsea GCA Realty, 7.25%, 10/21/07....................... 2,538
10,400 Continental Bank, N.A., 11.25%, 7/1/01.................... 10,660
5,000 Equity Residential Properties, 6.55%, 11/15/01............ 5,000
5,500 Gatx Capital Corp, 6.88%, 11/1/04......................... 5,569
13,000 Lumbermen's Mutual Casualty, 8.30%, 12/1/37............... 13,811
6,000 Lumbermen's Tiers Trust, 8.45%, 12/1/17................... 6,696
5,000 Sears Roebuck Acceptance, 6.63%, 2/25/02.................. 5,038
--------
66,337
--------
Industrials (16.7%):
15,000 Chrysler Corp., 7.40%, 8/1/2097**......................... 15,768
8,050 ERAC USA Finance Co., 6.35%, 1/15/01...................... 8,060
2,000 Ingersoil-Rand, 6.26%, 2/15/01............................ 2,005
5,000 Ingersoil-Rand, 6.34%, 12/3/01............................ 5,025
5,700 Ingersoil-Rand, 6.39%, 11/15/27........................... 5,729
5,000 Johnson & Johnson, 8.25%, 11/9/04......................... 5,531
9,000 Johnson Controls, 7.70%, 3/1/15........................... 9,979
8,500 News America Holdings, 8.00%, 10/17/16.................... 9,116
15,000 News America Holdings, 7.75%, 12/1/45..................... 15,656
5,000 Time Warner Entertainment, 8.38%, 3/15/23................. 5,669
3,500 UPM-Kymmene Corp., 6.88%, 11/26/07........................ 3,496
--------
86,034
--------
</TABLE>
Continued
79
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Private Placement (8.4%):
$10,000 BNP US Funding LLC,
7.74%*, 12/31/49**....................................... $ 10,150
10,000 Empresa Elec Del Norte, 7.75%, 3/15/06.................... 9,675
10,000 Jackson National Life Insurance Co., 8.15%, 3/15/27....... 11,025
4,000 MMI Capital Trust, 7.63%, 12/15/27........................ 4,005
8,500 Transamerica Capital III, 7.63%, 11/15/37................. 8,808
--------
43,663
--------
Telecommunications (3.9%):
10,000 MFS Communications, 9.38%, 1/15/04**...................... 10,575
10,000 US West Communications, 6.13%, 11/21/00................... 9,925
--------
20,500
--------
Transportation (1.1%):
330 Continental Airlines Inc., 10.22%, 7/1/00**............... 330
5,000 Federal Express, 7.60%, 7/1/2097**........................ 5,319
--------
5,649
--------
Yankee (4.7%):
5,000 Korea Development Bank, 9.25%, 6/15/98.................... 4,750
10,000 National Bank of Canada, 4.50%*, 8/29/87.................. 8,450
10,000 Pan Pacific Industry, 0.00%, 4/28/07...................... 3,131
3,000 Skandia Capital Corp., 6.00%, 11/2/98..................... 2,989
5,000 St. George Funding Co., 8.48%, 12/31/49................... 5,227
--------
24,547
--------
Total Corporate Bonds 312,851
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
ASSET BACKED SECURITIES (6.7%):
$ 3,511 General Motors Acceptance Corp., 6.50%, 4/15/02........... $ 3,533
11,000 Green Tree Financial Corp., 7.20%, 4/15/19................ 11,282
2,877 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09 ... 2,933
4,968 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08............ 4,994
2,503 Structured Asset Securities Co., 7.50%, 8/25/26........... 2,537
9,410 The Money Store, 5.82%, 10/15/27.......................... 9,415
--------
Total Asset Backed Securities 34,694
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.5%):
Government Agency Backed CMO's (1.5%):
Federal National Mortgage Assoc. (1.5%):
4,389 9.00%, 7/25/20, Series 90-84.............................. 4,668
3,215 8.00%, 2/25/21, Series G92-35............................. 3,328
--------
7,996
--------
Total Collateralized Mortgage Obligations 7,996
--------
ADJUSTABLE RATE PREFERRED (4.2%):
Financial (4.2%):
10 NB Capital Corp., 8.35%, 9/3/07........................... 10,760
400 SI Financing Trust I, 0.59%*, 6/30/26..................... 10,800
--------
Total Adjustable Rate Preferred 21,560
--------
Total (Cost--$537,863)(a) $543,797
========
</TABLE>
- -------
Percentages indicated are based on net assets of $519,033.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rates which
will change periodically are based upon bank prime rates or an index of
market interest rates. The rate reflected on the Schedule of Portfolio
Investments is the rate in effect on December 31, 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) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized appreciation...................................... $ 9,096
Unrealized depreciation...................................... (3,162)
-------
Net unrealized appreciation.................................. $ 5,934
=======
(b) Represents security that has not yet had a CUSIP or series/pool number
assigned.
(c) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
80
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (94.3%):
Arizona (1.5%):
$2,000 Tempe, Refunding Bonds, 5.00%, 7/1/04.................... $ 2,085
--------
California (3.2%):
4,000 State, 6.00%, 10/1/08.................................... 4,515
--------
Colorado (1.5%):
1,000 Arapahoe County School District, # 005 Cherry Creek,
5.50%, 12/15/01......................................... 1,053
1,000 Jefferson County School District, 5.25%, 12/15/05........ 1,070
--------
2,123
--------
Connecticut (4.4%):
1,770 Clean Water Fund, 6.38%, 6/1/05.......................... 2,009
1,825 State, PCR, 5.50%, 3/1/06................................ 1,973
2,000 State, Special Tax Obligation, 5.38%, 9/1/08............. 2,150
--------
6,132
--------
Delaware (2.3%):
2,000 State, 5.00%, 5/1/04..................................... 2,080
1,000 Transportation Authority, 7.80%, 7/1/04.................. 1,186
--------
3,266
--------
Florida (8.8%):
135 Board of Education Capital Outlay, 9.13%, 6/1/14......... 192
2,000 Board of Education, Series G, 6.90%, 5/1/03, ETM......... 2,247
1,430 Gainesville Utility Systems, Series A, 5.75%, 10/1/09 ... 1,594
1,000 Gulf Breeze, Revenue, 4.80%, 12/1/17..................... 998
1,700 Hillsborough County Florida, 6.60%,
10/1/03 ................................................ 1,811
1,000 Jacksonville, Florida Electric & Water Authority Revenue,
5.00%, 10/1/03.......................................... 1,043
2,000 Jacksonville, Refunding Bonds, 6.00%, 10/1/05............ 2,223
1,000 State, Department of Transportation Right-of-Way-A,
6.00%, 7/1/07........................................... 1,124
1,000 Tampa, Sports Authority Revenue, 6.00%, 1/1/06........... 1,114
--------
12,346
--------
Georgia (7.1%):
1,000 Atlanta Airport Facility, 6.25%, 1/1/05.................. 1,116
1,200 Fayette County School District, G.O., 6.25%, 3/1/04...... 1,337
2,000 State, 6.60%, 4/1/05..................................... 2,298
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Georgia, continued:
$2,520 State, 6.80%, 8/1/06..................................... $ 2,973
2,000 State, Series B, 6.00%, 3/1/04........................... 2,205
--------
9,929
--------
Guam (1.2%):
1,505 Government Highway Revenue, Series A, 5.90%, 5/1/02...... 1,616
--------
Hawaii (0.8%):
1,000 Honolulu City & County, 5.80%, 1/1/07.................... 1,099
--------
Idaho (1.3%):
1,560 Canyon County School District, G.O., MBIA, 8.13%, 7/30/03
........................................................ 1,884
--------
Kansas (1.5%):
1,000 Department of Transportation & Highway, 7.25%, 3/1/04 ... 1,162
1,000 Kansas City, Utility System Revenue, 5.13%, 9/1/00....... 1,009
--------
2,171
--------
Kentucky (3.2%):
1,000 State, Turnpike Authority Economic Development, Refunding
Bonds, 5.00%, 7/1/02.................................... 1,034
3,000 State, Turnpike Authority, Refunding Bonds, 6.50%,
7/1/07.................................................. 3,480
--------
4,514
--------
Maryland (3.8%):
4,000 Montgomery County, 5.00%, 5/1/03......................... 4,160
1,000 Montgomery County, Refunding Bonds, 5.70%, 7/1/05........ 1,093
--------
5,253
--------
Massachusetts (0.7%):
1,000 State Health & Educational Facilities, 7.75%, 8/1/13 .... 1,043
--------
Michigan (1.3%):
1,500 Strategic Fund, 7.10%, 2/1/06............................ 1,768
--------
Minnesota (5.3%):
1,000 Minneapolis, Refunding Bonds, 6.05%, 4/1/03.............. 1,091
3,000 Northern Municipal Power Agency, 7.25%, 1/1/16........... 3,155
2,000 Public Facilities Water & Pollution, 5.00%, 3/1/06 ...... 2,098
</TABLE>
Continued
81
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Minnesota, continued:
$1,000 Public Facility Authority, Water Pollution, 6.50%,
3/1/03.................................................. $ 1,114
--------
7,458
--------
Missouri (3.6%):
1,535 Kansas City, G.O., 6.00%, 2/1/04......................... 1,687
495 State, Environmental Energy Reserve Authority, Water
Pollution Control, 7.00%, 10/1/10....................... 541
1,545 State, Environmental Improvements, 6.00%, 1/1/07......... 1,736
1,000 State, G.O., Series A, 6.00%, 4/1/02..................... 1,078
--------
5,042
--------
New Mexico (1.6%):
1,000 Albuquerque, Water & Sewer, 6.00%,
7/1/05.................................................. 1,114
1,000 Albuquerque, Water & Sewer, 6.00%,
7/1/07.................................................. 1,139
--------
2,253
--------
New York (6.2%):
1,050 Dormitory Authority, Series A, 5.75%, 7/1/10............. 1,180
1,000 Municipal Assistance Corp., 6.00%, 7/1/04................ 1,101
2,000 New York City, G.O., 8.00%, 4/1/03, AMBAC................ 2,355
1,365 New York City, Transitional Financial Authority Revenue,
5.50%, 8/15/07.......................................... 1,486
2,200 Westchester County, 6.70%, 11/1/05 ...................... 2,558
--------
8,680
--------
North Carolina (0.8%):
1,000 State, School Improvements, 5.10%, 3/1/05................ 1,055
--------
Ohio (6.0%):
1,000 Cleveland, 5.50%, 8/1/06................................. 1,078
1,020 Cleveland, School District, 8.00%, 12/1/01, Callable
12/1/97 @ 100........................................... 1,162
1,000 State, Highway Improvements, 5.00%, 5/1/06............... 1,055
3,000 State, Infrastructure Improvement, 5.25%, 8/1/05......... 3,216
1,715 State, Water Revenue Bonds, 6.00%,
6/1/07.................................................. 1,923
--------
8,434
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Oregon (5.7%):
$1,000 Deschutes & Jefferson, School District, G.O., 6.00%,
6/1/03.................................................. $ 1,096
1,435 Lane County, School District, G.O., 6.00%, 1/1/04........ 1,584
1,500 Portland, Refunding Bonds, 5.00%, 6/1/04................. 1,569
2,000 Washington County, Refunding Bonds, 5.75%, 10/1/08....... 2,243
1,220 Washington County, School District, 7.80%, 6/1/04........ 1,456
--------
7,948
--------
Pennsylvania (1.0%):
1,250 Philadelphia, Parking Authority, 5.75%, 9/1/08........... 1,384
--------
Puerto Rico (5.8%):
5,000 Commonwealth, Electric Power Authority, 6.50%, 7/1/06.... 5,788
1,000 Commonwealth, MBIA, 6.50%, 7/1/04........................ 1,136
1,000 University of Puerto Rico, 6.25%, 6/1/07................. 1,145
--------
8,069
--------
Rhode Island (0.8%):
1,130 State, 5.00%, 8/1/06..................................... 1,179
--------
South Carolina (1.6%):
2,095 Cherokee County, School Improvements, 5.50%, 3/1/05...... 2,255
--------
Tennessee (5.2%):
1,290 Memphis, G.O., 6.00%, 11/1/03............................ 1,414
1,435 Metro Government Nashville County, 5.25%, 5/15/07........ 1,523
2,000 Shelby, G.O., 5.00%, 8/1/06.............................. 2,088
2,000 State, G.O., 6.00%, 5/1/05 .............................. 2,225
--------
7,250
--------
Texas (0.7%):
1,000 Dallas County, 5.00%, 8/15/04 ........................... 1,045
--------
Utah (1.5%):
2,000 State, Highway Improvements, 5.50%, 7/1/04............... 2,148
--------
Vermont (1.9%):
2,355 Burlington, Electric Revenue, Refunding Bonds, 6.00%,
7/1/07.................................................. 2,643
--------
Washington (1.5%):
1,000 King County, 6.10%, 12/1/01 ............................. 1,002
1,000 Seattle, 5.00%, 12/1/03.................................. 1,043
--------
2,045
--------
</TABLE>
Continued
82
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Wisconsin (2.5%):
$2,000 Milwaukee, Refunding Bonds, 6.00%,
2/1/07.................................................. $ 2,237
1,170 State, Public Improvements, 5.25%,
5/1/07.................................................. 1,245
--------
3,482
--------
Total Municipal Bonds 132,114
--------
GOVERNMENT BACKED MUNICIPAL BONDS (3.2%):
Minnesota (0.8%):
1,000 North Saint Paul Maplewood, 6.88%, 2/1/15, Prerefunded
2/1/05 @ 100............................................ 1,159
--------
New York (1.6%):
2,110 Municipal Assistance Corp., 7.63%, 7/1/08, Prerefunded
7/1/99 @ 102............................................ 2,260
--------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT BACKED MUNICIPAL BONDS, CONTINUED:
Texas (0.8%):
$1,000 Dallas G.O., 6.13%, 2/15/07, Prerefunded 2/15/03 @ 100... $ 1,083
--------
Total Government Backed Municipal Bonds 4,502
--------
ALTERNATIVE MINIMUM TAX PAPER (0.8%):
Delaware (0.8%):
1,100 Economic Development Authority Revenue, Delmarva Power &
Light Project, 5.25%*, 10/1/17**........................ 1,100
--------
Total Alternative Minimum Tax Paper 1,100
--------
INVESTMENT COMPANIES (0.0%):
12 Muni Cash Mutual Fund.................................... 12
--------
Total Investment Companies 12
--------
Total (Cost $133,324) (a) $137,728
========
</TABLE>
- -------
Percentages indicated are based on net assets of $140,079.
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rates which
will change periodically are based upon bank prime rates or an index of
market rates. The rate reflected on the Schedule of Portfolio Investments is
the rate in effect on December 31, 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) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $ 4,407
Unrealized depreciation...................................... (3)
-------
Net unrealized appreciation.................................. $ 4,404
=======
</TABLE>
EMT--Escrowed to Maturity
G.O.--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
PCR--Pollution Control Revenue
See notes to financial statements.
83
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
ALTERNATIVE MINIMUM TAX PAPER (0.8%):
Michigan (0.8%):
$1,525 Housing Development Authority, 5.75%, 10/1/04............ $ 1,640
285 Wayne County, Airport Revenue, 7.25%, 12/1/10............ 313
--------
Total Alternative Minimum Tax Paper 1,953
--------
GOVERNMENT BACKED MUNICIPAL BONDS (11.4%):
Michigan (11.4%):
1,000 Chippewa Valley, School District, 7.00%, 5/1/11,
Prerefunded 5/1/01 @ 102................................ 1,106
1,100 Dearborn, School District, 8.38%, 5/1/01, Prerefunded
5/1/00 @ 102............................................ 1,225
2,000 Detroit Water, 7.88%, 7/1/19, Prerefunded 7/1/98 @ 102... 2,080
1,275 Detroit, Sewage Disposal, 6.20%, 7/1/02, Callable 7/1/01
@ 102, Prerefunded 7/1/01 @ 102......................... 1,385
1,000 Kent County, Hospital Authority, Butterworth Hospital,
7.25%, 1/15/12, Prerefunded 1/15/00 @ 102............... 1,081
500 Kentwood, School District, 5.90%, 5/1/04, Prerefunded
5/1/02 @ 102............................................ 541
1,000 Kentwood, School District, G.O., 7.15%, 5/1/07,
Prerefunded 5/1/99 @ 102................................ 1,059
2,000 Lake Orion, County School District, G.O., 7.00%, 5/1/20,
Callable 5/1/5 @ 101, Prerefunded 5/1/05 @ 101.......... 2,350
2,000 Rochester, School District, 6.30%, 5/1/04, Callable
5/1/02 @ 100, Prerefunded 5/1/02 @ 100.................. 2,160
1,000 Rochester, School District, 6.50%, 5/1/07, Prerefunded
5/1/02 @ 100............................................ 1,088
1,000 Rochester, School District, 6.50%, 5/1/08, Callable
5/1/02 @ 100, Prerefunded 5/1/02 @ 100.................. 1,088
1,000 State Building Authority, 7.25%, 10/1/08, Prerefunded
10/1/99 @ 100........................................... 1,055
1,020 State Building Authority, Michigan University Adult
General Hospital, 7.00%, 12/1/08, Prerefunded 12/1/02 @
100..................................................... 1,145
2,825 State Environmental Protection Program, G.O., 6.25%,
11/1/07, Prerefunded 11/1/02 @ 102...................... 3,113
500 State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @
102..................................................... 531
1,000 State Trunk Line, 7.00%, 8/15/17, Callable 8/15/99 @ 102,
Prerefunded 8/15/99 @ 102............................... 1,066
1,000 Traverse City, Public Schools, 7.00%, 5/1/05, Prerefunded
5/1/01 @ 101.5.......................................... 1,103
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT BACKED MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$1,325 Tri County School District, G.O., 6.88%, 5/1/16,
Prerefunded 5/1/01 @ 101.50............................. $ 1,458
1,000 Troy, School District, 7.75%, 5/1/01, Callable 5/1/00 @
102, Prerefunded 5/1/00 @ 102 .......................... 1,101
2,000 University of Michigan, Hospital Revenue Bonds, 7.00%,
12/1/21, Callable 12/1/00 @ 102*, Prerefunded 12/1/00 @
102..................................................... 2,195
1,000 Wyandotte City, School District, G.O., 6.90%, 5/1/16,
Prerefunded 5/1/1 @ 102................................. 1,104
--------
Total Government Backed Municipal Bonds 29,034
--------
MUNICIPAL BONDS (86.2%):
Michigan (79.0%):
1,850 Avondale, School District, 5.80%, 5/1/07, Callable 5/1/02
@ 102................................................... 1,982
1,380 Byron Center, Public Schools, G.O., 8.25%, 5/1/08, MBIA.. 1,822
1,380 Byron Center, Public Schools, G.O., 8.25%, 5/1/09, MBIA.. 1,839
1,500 Chippewa Valley, School District, G.O., 8.10%, 5/1/99.... 1,579
2,375 Chippewa Valley, School District, G.O., 7.80%, 5/1/01.... 2,648
1,000 Clarkston, Commerce Schools, 6.25%, 5/1/05............... 1,128
1,150 Clarkston, County Schools, G.O., 6.00%, 5/1/04........... 1,266
1,600 Comprehensive Transportation, Series B, 5.40%, 5/15/01... 1,670
1,000 Detroit, 5.50%, 4/1/08................................... 1,068
1,600 Detroit, 6.25%, 7/15/11.................................. 1,840
1,065 Detroit, Refunding Bonds, 5.50%, 5/1/03.................. 1,121
2,000 Detroit, Revenue Bonds, G.O., 5.25%, 5/1/08, AMBAC....... 2,115
1,000 Detroit, Sewage Disposal Revenue, 6.00%, 7/1/10.......... 1,130
1,000 Detroit, Sewage Disposal Revenue, Series B, 6.00%,
7/1/09.................................................. 1,131
2,500 Detroit, Sewer Disposal, 6.00%, 7/1/07................... 2,816
1,000 Detroit, Water, 6.50%, 7/1/15, FGIC...................... 1,189
2,000 Detroit, Water Supply System, 5.40%, 7/1/10.............. 2,148
2,250 Detroit, Water Supply System, Series B, 5.55%, 7/1/12,
MBIA.................................................... 2,441
1,375 East Lansing, Building Authority, 6.90%, 10/1/11......... 1,463
1,350 Ecorse, Public School, 6.50%, 5/1/07..................... 1,561
2,250 Farmington, Refunding Bonds, 5.00%, 5/1/03............... 2,337
1,000 Farmington, Refunding Bonds, 5.00%, 5/1/06............... 1,039
1,110 Flint, Refunding Bonds, 6.00%, 11/1/04................... 1,227
</TABLE>
Continued
84
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$1,125 Goodrich, Area School District, G.O., 7.65%, 5/1/11,
Callable 5/1/05 @ 102, MBIA.............................. $ 1,374
1,000 Grand Haven, Electric, 5.20%, 7/1/06, MBIA................ 1,059
1,235 Grand Haven, Public Schools, G.O., 7.00%, 5/1/07, Callable
5/1/03 @ 102............................................. 1,479
2,655 Grand Ledge, Public School District, 5.25%, 5/1/09........ 2,831
1,250 Grand Ledge, Public School District, G.O., 5.45%, 5/1/11,
MBIA..................................................... 1,344
1,200 Grand Rapids, G.O., 6.50%, 5/1/00......................... 1,269
2,400 Grand Rapids, Public Schools, 8.00%, 5/1/99............... 2,526
1,925 Grand Rapids, School District, G.O., 5.00%, 5/1/06,
Callable 5/1/01 @ 102.................................... 1,985
1,000 Grand Valley, Michigan State, 7.88%, 10/1/08.............. 1,049
1,500 Greater Detroit Resources Recovery, 6.25%, 12/13/08....... 1,721
1,000 Hartland, School District, G.O., 5.35%, 5/1/03............ 1,060
1,570 Holland, Electric, 6.25%, 7/1/01.......................... 1,678
600 Holt, School District, G.O., 8.75%, 5/1/00................ 662
600 Holt, School District, G.O., 8.75%, 5/1/01................ 686
1,000 Housing Development Authority, Series A, 6.45%, 6/1/04,
Callable 6/1/02 @ 102.................................... 1,079
1,000 Huron Valley, School District, 5.75%, 5/1/06.............. 1,099
1,650 Kalamazoo, G.O., 6.20%, 10/1/06, Callable 10/1/02 @ 101.5. 1,786
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.................................................. 1,063
1,000 Kalamazoo, Hospital Finance Authority, 5.63%, 7/1/00...... 1,036
2,000 Kalamazoo, Hospital Finance Authority, Borgess Medical
Center, 6.13%, 7/1/07, FGIC.............................. 2,175
2,000 Kalamazoo, Hospital Finance Authority, Borgess Medical
Center, Series A, 6.00%, 6/1/03.......................... 2,168
1,440 Kalamazoo, Hospital Finance Authority, Bronson Hospital,
5.88%, 5/15/03........................................... 1,546
1,000 Kalamazoo, Public Library, 5.20%, 5/1/11.................. 1,054
1,300 Kenowa Hills, G.O., 5.50%, 5/1/04......................... 1,393
1,120 Kent County, 8.00%, 12/1/98............................... 1,165
1,250 Kent County, Building Authority, 6.00%, 12/1/09........... 1,298
3,000 Kent County, G.O., 5.00%, 11/1/06......................... 3,139
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$5,000 Kent County, Hospital Authority, Butterworth Hospital,
Series A, 7.25%, 1/15/13................................. $ 6,249
1,000 Kent, Hospital Finance Authority, Revenue Bonds, 5.10%,
1/15/07.................................................. 1,040
500 Kentwood, Public Schools, G.O., 7.15%, 5/1/01............. 529
500 Kentwood, School District, 5.90%, 5/1/04.................. 541
1,000 Lansing, Building Authority, 6.00%, 6/1/04................ 1,061
1,335 Lansing, G.O., 6.00%, 1/1/07.............................. 1,490
1,000 Lansing, Michigan Light, G.O., 6.00%, 10/1/02............. 1,074
2,000 Lansing, School District, G.O., 6.88%, 5/1/09, Callable
5/1/05 @ 100............................................. 2,275
1,000 Livonia, School District, G.O., 6.35%, 5/1/04, Callable
5/01/02 @ 102............................................ 1,100
1,000 Local Government Loan Program, 6.20%, 5/1/04.............. 1,106
1,000 Michigan State University, Series A, 5.70%, 8/15/03,
Callable 8/15/02 @ 101................................... 1,074
2,075 Mona Shores, School District, G.O., 6.75%, 5/1/09......... 2,498
2,515 Mount Pleasant, School District, 5.75%, 5/1/05............ 2,744
2,000 Municipal Bond Authority, 6.25%, 5/15/00.................. 2,103
1,000 Municipal Bond Authority, Detroit Schools State Aid,
6.70%, 11/1/99........................................... 1,038
1,000 Municipal Bond Authority, Local Government Program, 6.90%,
5/1/99................................................... 1,048
1,000 Oakland County, Community College, 6.65%, 5/1/11.......... 1,110
1,000 Oakland, University of Michigan, 5.00%, 5/15/05........... 1,043
1,000 Paw Paw, Public School District, G.O., 6.50%, 5/1/09,
FGIC..................................................... 1,181
1,000 Plymouth, School District, 6.50%, 5/1/05, Callable 5/1/01
@ 101.................................................... 1,078
1,000 Rochester, Community School District, 5.25%, 5/1/04....... 1,060
1,000 Rochester, School Improvements, 5.75%, 5/1/08, Purpose:... 1,103
2,000 Rochester, School District, 5.70%, 5/1/07................. 2,198
1,135 Rockford, School District, 5.75%, 5/1/07, Callable 5/1/02
@ 102.................................................... 1,213
400 Rockford, School District, Refunding Bonds, 6.00%, 5/1/07. 448
2,260 Romeo, Community School District, Refunding Bonds, 5.25%,
5/1/06................................................... 2,407
</TABLE>
Continued
85
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$1,145 Royal Oak, Hospital Authority, William Beaumont, 7.00%,
1/1/98................................................... $ 1,145
2,120 Royal Oak, Hospital Financial Authority, William Beaumont
Hospital, Series G, 6.00%, 11/15/02...................... 2,295
1,000 State Building Authority, 6.25%, 10/1/00.................. 1,058
3,475 State Building Authority, 6.25%, 10/1/03.................. 3,831
2,000 State Building Authority Revenue, Refunding Bonds, 5.50%,
10/15/05................................................. 2,138
1,000 State Building Authority, Series II, 6.40%, 10/1/04,
Callable 10/1/01 @ 102................................... 1,091
2,300 State Comprehensive Transportation, 6.70%, 9/1/98......... 2,346
3,000 State Environmental Protection Program, G.O., 5.50%,
11/1/05.................................................. 3,244
3,250 State Environmental Protection Program, G.O., 6.25%,
11/1/12.................................................. 3,778
500 State Hospital Authority, Henry Ford, 6.00%, 9/1/11....... 561
2,000 State Hospital Authority, Henry Ford, 6.00%, 9/1/12,
AMBAC.................................................... 2,245
1,135 State Hospital Finance Authority, Harper Grace Hospital,
7.12%, 5/1/09, ETM....................................... 1,308
1,200 State Hospital Finance Authority, Oakwood Hospital, Series
A, 5.00%, 11/1/03........................................ 1,245
5,000 State Hospital Finance Authority, Sisters of Mercy, 5.38%,
8/15/14, MBIA............................................ 5,263
1,000 State Hospital Revenue Bonds, 6.00%, 8/15/02.............. 1,075
1,000 State Housing Development, 6.63%, 10/15/06, Callable
10/15/02 @ 103........................................... 1,096
1,055 State Power Agency, 5.70%, 11/1/04........................ 1,145
2,000 State Recreation Program, G.O., 5.75%, 11/1/01............ 2,123
2,000 State South Central Power Agency, 5.80%, 11/1/05.......... 2,195
1,005 State Trunk Line, 6.25%, 11/1/03.......................... 1,109
1,000 State Underground Storage, 6.00%, 5/1/05.................. 1,105
2,000 State Underground Tank Financial Assurance Authority,
Refunding Bonds, 6.00%, 5/1/04........................... 2,190
2,165 State, G.O., 5.00%, 12/1/03............................... 2,260
4,450 Strategic Fund, 7.10%, 2/1/06............................. 5,245
300 Strategic Fund, 3.85%, 9/1/30............................. 300
3,000 Strategic Fund, (Detroit Edison), 7.00%, 7/15/08.......... 3,660
2,000 Strategic Fund, (Detroit Edison), 6.95%, 5/1/11........... 2,448
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$ 400 Traverse City, School District, G.O., 9.00%, 5/1/99...... $ 427
500 University of Michigan, 6.00%, 4/1/05.................... 556
1,000 University of Michigan, Student Fees, 5.00%, 4/1/02...... 1,039
1,315 University of Michigan, Student Fees, Series A, 6.00%,
4/1/06.................................................. 1,468
2,000 University of Michigan, Student Fees, Series B, 5.60%,
4/1/08, Callable 4/1/03 @ 102........................... 2,145
1,975 Utica, School District, 5.60%, 5/1/05.................... 2,126
2,000 Wayne County, Building Authority, 6.00%, 6/1/07, Callable
6/1/06 @ 102 ........................................... 2,243
1,985 West Ottawa, Refunding Bonds, 6.00%, 5/1/06.............. 2,206
1,680 Western Michigan School District, 5.90%, 5/1/10, MBIA.... 1,884
400 Western Michigan University, Refunding Bonds, 5.00%,
11/15/07................................................ 419
1,500 Western Michigan University, Series A, 5.40%, 7/15/08,
Callable 7/15/03 @ 105.................................. 1,590
1,000 Western Township, Utilities Authority, 6.00%, 1/1/00..... 1,039
1,000 Western Township, Utilities Authority, 6.10%, 1/1/01..... 1,060
3,000 Wyandotte, Electric Revenue, 6.25%, 10/1/08, MBIA........ 3,465
--------
200,326
--------
Puerto Rico (7.2%):
1,000 Commonwealth, Aqueduct & Sewer Authority, 6.00%, 7/1/07,
MBIA.................................................... 1,125
4,000 Commonwealth, G.O., 6.25%, 7/1/09........................ 4,610
2,000 Commonwealth, G.O., 6.25%, 7/1/10........................ 2,305
500 Commonwealth, G.O., 6.25%, 7/1/12........................ 579
1,425 Commonwealth, Highway & Transportation, 6.25%, 7/1/14.... 1,669
1,250 Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA.. 1,431
1,000 Electric Power Authority, Series Y, 6.50%, 7/1/06, MBIA.. 1,158
4,000 Public Buildings Authority, 5.50%, 7/1/07, FSA........... 4,360
1,000 University of Puerto Rico, 6.25%, 6/1/07................. 1,145
--------
18,382
--------
Total Municipal Bonds 218,708
--------
</TABLE>
Continued
86
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Michigan Municipal Bond Fund (Unaudited)
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (0.2%):
$ 566 Federated Michigan Tax Free Money Market.................. $ 566
--------
Total Investment Companies 566
--------
Total (Cost--$236,383)(a) $250,261
========
</TABLE>
- -------
Percentages indicated are based on net assets of $253,910.
* 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.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $13,878
Unrealized depreciation...................................... --
-------
Net unrealized appreciation.................................. $13,878
=======
</TABLE>
AMBAC--Insured by AMBAC Indemnity Corp.
EMT--Escrowed to Maturity
FGIC--Insured by Financial Guaranty Insurance Corp.
FSA--Insured by Financial Security Assurance
GO--General Obligation
MBIA--Insured by Municipal Bond Insurance Assoc.
See notes to financial statements.
87
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Conservative Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS (27.2%):
Apparel/Shoes (0.1%):
400 Brylane, Inc.(b)............................................ $ 20
------
Banking (0.2%):
600 State Street Corp........................................... 35
------
Broadcasting & Publishing (0.7%):
1,700 CanWest Global Communications Corp.......................... 31
600 Chancellor Media Corp.(b)(c)................................ 44
400 Clear Channel Communications, Inc.(b)(c).................... 32
------
107
------
Building Products (0.1%):
800 Royal Group Technologies Ltd.(b)............................ 19
------
Business Services (1.1%):
800 Analog Devices, Inc.(b)(c).................................. 22
500 Automatic Data Processing, Inc.............................. 31
800 BA Merchant Services, Inc.(b)............................... 14
700 Cintas Corp................................................. 27
1,000 Paychex, Inc................................................ 51
1,200 SunGard Data Systems, Inc.(b)(c)............................ 37
------
182
------
Chemicals (0.2%):
800 Monsanto Co.(c)............................................. 34
------
Computer Hardware (0.3%):
600 EMC Corp.(c)................................................ 16
700 Sun Microsystems, Inc.(b)................................... 28
------
44
------
Computer Software & Peripherals (3.7%):
300 American Online, Inc.(b)(c)................................. 27
900 Baan Co. N.V.(b)............................................ 30
1,100 BMC Software, Inc.(b)(c).................................... 72
1,900 Cadence Design Systems, Inc.(b)(c).......................... 47
800 Cambridge Technology Partners, Inc.(b)...................... 33
300 CBT Group PLC(b)............................................ 25
1,200 Cisco Systems, Inc.(b)...................................... 67
1,100 First Data Corp............................................. 32
300 HNC Software(b)............................................. 13
400 Microsoft, Inc.(b).......................................... 52
1,000 Parametric Technology Corp.(b).............................. 47
3,100 PeopleSoft, Inc.(b)......................................... 119
300 VERITAS Software Corp.(b)................................... 15
------
579
------
Consumer Goods & Services (1.0%):
2,261 Cendant Corp.(c)............................................ 78
800 Procter & Gamble Co......................................... 64
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Consumer Goods & Services, continued:
600 U.S. Rentals, Inc.(b)....................................... $ 14
------
156
------
Correctional Facilities (0.1%):
400 Corrections Corp. of America(b)............................. 15
------
Cosmetics/Personal Care (0.3%):
500 Gillette Co.(c)............................................. 50
------
Data Processing & Reproduction (0.2%):
800 Fiserv, Inc.(b)............................................. 39
------
Diversified Operations (0.6%):
1,000 Cognizant Corp.............................................. 45
200 Corning, Inc................................................ 7
900 Tyco International Ltd.(c).................................. 41
------
93
------
Educational Services (0.2%):
300 Apollo Group, Inc.(b)(c).................................... 14
650 Sylvan Learning Systems, Inc.(b)............................ 26
------
40
------
Electrical & Electronic (0.7%):
600 Emerson Electric Co......................................... 34
800 General Electric Co......................................... 59
981 Molex, Inc.................................................. 28
------
121
------
Environmental Services (0.4%):
1,630 USA Waste Services, Inc.(b)(c).............................. 64
------
Financial Services (2.2%):
600 American Express Co......................................... 54
800 Associates First Capital Corp.(c)........................... 55
800 Concord EFS, Inc.(b)........................................ 20
900 Federal Home Loan Mortgage Corp............................. 38
800 Finova Group, Inc........................................... 40
300 FIRSTPLUS Financial Group, Inc.(b).......................... 12
400 Household International, Inc................................ 51
1,800 MBNA Corp.(c)............................................... 49
650 Nationwide Financial Services............................... 23
------
342
------
Food & Beverage (0.2%):
500 The Coca-Cola Co............................................ 33
------
Food & Household Products (0.1%):
500 Sunbeam Corp.(c)............................................ 21
------
</TABLE>
Continued
88
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Conservative Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Food Products & Services (0.5%):
400 CPC International, Inc.(b)(c)............................... $ 43
550 Safeway, Inc.(b)(c)......................................... 35
------
78
------
Forest & Paper Products (0.2%):
600 Kimberly-Clark Corp......................................... 30
------
Funeral Services (0.8%):
2,700 Service Corp. International(c).............................. 100
600 Stewart Enterprises......................................... 28
------
128
------
Health & Personal Care (0.1%):
600 Alberto-Culver Co.(c)....................................... 16
------
Health Care - Services (0.8%):
700 Health Care & Retirement Corp.(b)........................... 28
1,950 Health Management Associates, Inc.(b)....................... 49
1,100 HEALTHSOUTH Corp.(b)........................................ 31
500 Quintiles Transnational Corp.(b)(c)......................... 19
------
127
------
Hotels & Lodging (0.4%):
800 Capstar Hotel(b)............................................ 27
600 Marriott International, Inc................................. 42
------
69
------
Industrial Goods & Services (0.6%):
500 Clorox Co.(c)............................................... 40
900 United Technologies Corp.................................... 65
------
105
------
Insurance (1.9%):
550 American International Group, Inc........................... 60
700 Conseco, Inc................................................ 32
700 Marsh & McLennan Cos., Inc.................................. 52
900 MGIC Investment Corp.(c).................................... 60
2,225 SunAmerica, Inc.(c)......................................... 95
------
299
------
Manufacturing - Consumer Goods (0.2%):
900 Newell Co................................................... 38
------
Medical Equipment & Supplies (0.8%):
900 Guidant Corp................................................ 57
500 Medtronic, Inc.(c).......................................... 26
1,400 Omnicare, Inc.(c)........................................... 43
------
126
------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Office Equipment & Services (0.5%):
300 Electronics for Imaging, Inc.(b)............................ $ 5
400 Hewlett Packard Co.......................................... 25
700 Xerox Corp.................................................. 52
------
82
------
Oil & Gas (0.1%):
300 Schlumberger Ltd.(c)........................................ 24
------
Oilfield Services & Equipment (0.4%):
300 Camco International, Inc.................................... 19
400 Cooper Cameron Corp......................................... 24
1,400 Newpark Resources, Inc.(b).................................. 25
------
68
------
Pharmaceuticals (1.7%):
800 Dura Pharmaceuticals, Inc.(b)............................... 37
1,000 Eli Lilly & Co.............................................. 70
400 Johnson & Johnson........................................... 26
1,000 Pfizer, Inc................................................. 74
500 Warner-Lambert Co.(c)....................................... 62
------
269
------
Resorts & Entertainment (0.5%):
900 Carnival Cruise Lines....................................... 50
400 Royal Caribbean Cruises Ltd................................. 21
700 Signature Resorts, Inc.(b).................................. 15
------
86
------
Retail - Speciality Stores (0.3%):
850 Home Depot, Inc............................................. 50
------
Retail Stores (1.0%):
850 Consolidated Stores Corp.(b)(c)............................. 37
475 Dollar General Corp......................................... 17
400 Lowe's Cos.(c).............................................. 19
700 MSC Industrial Direct Co., Inc.(c).......................... 30
1,150 U.S. Office Products Co.(b)(c).............................. 23
1,300 Walgreen Co................................................. 41
------
167
------
Savings & Loans/Thrift (0.2%):
1,100 Ocwen Financial Services Corp.(b)........................... 28
------
Semiconductors (0.6%):
600 Applied Materials, Inc.(b).................................. 18
600 Intel Corp.................................................. 42
300 KLA-Tencor Corp.(b)......................................... 12
400 Texas Instruments(c)........................................ 18
300 Vitesse Semiconductor Corp.(b).............................. 11
------
101
------
</TABLE>
Continued
89
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Conservative Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Technology (0.2%):
200 Sanmina Corp.(b)............................................ $ 14
400 Uniphase Corp.(c)........................................... 16
------
30
------
Technology - Software (0.3%):
400 Computer Sciences Corp.(b)(c)............................... 34
500 Visio Corp.(b)(c)........................................... 19
------
53
------
Telecommunications - Services & Equipment (1.8%):
800 ADC Telecommunications, Inc.(b)(c).......................... 33
900 AirTouch Communications, Inc.(b)............................ 37
500 Electric Lightwave(b)....................................... 7
600 Lucent Technologies, Inc.(c)................................ 49
600 McLeod USA, Inc.(b)......................................... 19
600 MRV Communications(b)....................................... 14
600 PairGain Technologies, Inc.(b)(c)........................... 12
300 Qwest Communications International, Inc.(b)................. 18
500 Teleport Communcications Group, Inc.(b)(c).................. 27
450 Tellabs, Inc.(b)(c)......................................... 24
1,300 West TeleServices Corp.(b).................................. 16
900 WorldCom, Inc.(b)(c)........................................ 27
------
283
------
Wholesale Distribution (0.3%):
1,000 Brightpoint, Inc.(b)........................................ 14
200 CDW Computer Center, Inc.(b)(c)............................. 10
900 Richfood Holdings, Inc...................................... 26
------
50
------
Wholesale Distribution - Pharmaceuticals (0.6%):
1,300 Cardinal Health, Inc.(c).................................... 98
------
Total Common Stocks 4,399
------
CORPORATE BONDS (14.7%):
Financial (3.9%):
200,000 Associates Corp., NA, 6.50%, 7/15/02........................ 202
150,000 Ford Motor Credit, 8.20%, 2/15/02........................... 160
175,000 General Motors Acceptance Corp., 6.38%, 12/1/01............. 175
100,000 Travelers Property Casualty, 6.75%, 11/15/06................ 102
------
639
------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ ------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Foreign Governments (1.2%):
175,000 Quebec Province, 13.00%, 10/1/13............................ $ 192
------
Industrial (8.9%):
249,000 Amoco Canada, 6.75%, 2/15/05................................ 258
250,000 Atlantic Richfield, 10.88%, 7/15/05......................... 317
150,000 Honeywell, Inc., 6.75%, 3/15/02............................. 153
200,000 ICI Wilmington, 6.95%, 9/15/04.............................. 206
200,000 Nike, Inc., 6.38%, 12/1/03.................................. 201
300,000 Sears Roebuck Acceptance, 6.38%, 11/25/02................... 301
------
1,436
------
Transportation & Shipping (0.7%):
105,000 Norfolk Southern Corp., 6.95%, 5/1/02....................... 108
------
Total Corporate Bonds 2,375
------
ASSET BACKED SECURITIES (3.3%):
123,428 Banc One Auto Grantor Trust, 6.27%, 11/20/03................ 124
208,734 Daimler-Benz Auto Grantor Trust, 6.05%, 3/20/05............. 209
200,000 Discover Card Master Trust, 6.05%, 8/18/08.................. 197
------
Total Asset Backed Securities 530
------
COLLATERALIZED MORTGAGE OBLIGATIONS (0.8%):
Government Agency Backed CMO's (0.8%):
125,000 Securitized Asset Sales, Inc., 7.53%, 3/25/24............... 127
------
Total Collateralized Mortgage Obligations 127
------
U.S. TREASURY NOTES (47.6%):
1,000,000 5.88%, 10/31/98............................................. 1,002
925,000 6.25%, 3/31/99.............................................. 932
250,000 5.75%, 9/30/99(c)........................................... 250
2,465,000 6.50%, 8/31/01.............................................. 2,526
1,280,000 6.25%, 2/28/02(c)........................................... 1,303
400,000 7.88%, 11/15/04(c).......................................... 447
1,180,000 7.00%, 7/15/06 ............................................. 1,273
------
Total U.S. Treasury Notes 7,733
------
</TABLE>
Continued
90
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Conservative Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- -------
<C> <S> <C>
REPURCHASE AGREEMENTS (5.3%):
859,000 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $1,051
Federal Home Loan Mortgage Corp., 6.45%, 3/15/24, market
value--$876)............................................ $ 859
-------
Total Repurchase Agreements 859
-------
Total (Cost--$15,414)(a) $16,023
=======
</TABLE>
- -------
Percentages indicated are based on net assets of $16,200.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
Unrealized appreciation....................................... $ 770
Unrealized depreciation....................................... (161)
-----
Net unrealized appreciation................................... $ 609
=====
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
91
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (38.4%):
Advertising (0.1%):
15,650 HA-LO Industries, Inc.(b).................................. $ 407
-------
Apparel/Shoes (0.1%):
7,600 Brylane, Inc.(b)........................................... 374
-------
Banking (0.2%):
12,100 State Street Corp.......................................... 704
-------
Broadcasting & Publishing (0.7%):
29,200 CanWest Global Communications Corp......................... 526
10,000 Chancellor Media Corp.(b)(c)............................... 746
6,550 Clear Channel Communications, Inc.(c)...................... 520
7,150 Consolidated Graphics, Inc.(b)............................. 333
-------
2,125
-------
Building Products (0.1%):
13,100 Royal Group Technologies Ltd............................... 304
-------
Business Services (1.8%):
12,700 Analog Devices, Inc.(b)(c)................................. 352
10,500 Automatic Data Processing, Inc............................. 644
13,700 BA Merchant Services, Inc.(b).............................. 243
6,700 Boron, Lepore & Assoc., Inc.(b)............................ 184
12,600 Cintas Corp................................................ 491
8,200 International Telecommunications Data Systems, Inc.(b)..... 262
9,750 NCO Group, Inc.(b)......................................... 251
7,100 NOVA Corp (Georgia)........................................ 178
13,100 Novacare Employee Services(b).............................. 105
16,500 Paychex, Inc............................................... 837
10,450 Registry, Inc.(c).......................................... 479
6,700 RWD Technologies, Inc.(b).................................. 121
7,700 SOS Staffing Services, Inc.(b)............................. 145
15,950 Staff Leasing, Inc.(b)..................................... 301
21,200 SunGard Data Systems, Inc.(b)(c)........................... 657
-------
5,250
-------
Chemicals (0.2%):
15,800 Monsanto Co.(c)............................................ 664
-------
Computer Hardware (0.6%):
11,300 Apex PC Solutions, Inc.(b)................................. 250
8,850 Box Hill Systems Corp.(b).................................. 92
13,600 EMC Corp.(c)............................................... 373
5,500 Insight Enterprises(b)(c).................................. 202
7,100 ONTRACK Data International(b).............................. 177
12,700 Sun Microsystems, Inc.(b).................................. 507
-------
1,601
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
- --------- ------------------------------------------ -------
<S> <C> <C>
COMMON STOCKS, CONTINUED:
Computer Software & Peripherals (4.9%):
6,000 American Online, Inc.(b)(c)............... $ 535
12,500 Aspen Technologies, Inc.(b)............... 428
7,000 Axnet Technologies, Inc.(b)............... 121
9,400 Baan Co. N.V.(b).......................... 310
19,000 BMC Software, Inc.(b)(c).................. 1,247
35,200 Cadence Design Systems, Inc.(b)(c)........ 862
26,700 Cambridge Technology Partners, Inc.(b)(c). 1,111
5,900 CBT Group PLC(b).......................... 485
24,900 Cisco Systems, Inc.(b).................... 1,388
9,400 CyberMedia, Inc.(b)(c).................... 142
22,186 First Data Corp.(b)....................... 649
4,900 HNC Software(b)........................... 211
11,500 JDA Software Group, Inc.(b)............... 403
8,600 Logility, Inc.(b)......................... 84
6,600 MEMCO Software, Inc....................... 134
9,300 Microsoft, Inc.(b)........................ 1,202
17,600 Parametric Technology Corp.(b)............ 834
15,200 Pegasystems, Inc.(b)(c)................... 307
59,600 PeopleSoft, Inc.(b)....................... 2,324
18,225 VERITAS Software Corp.(b)................. 929
-------
13,706
-------
Consumer Goods & Services (1.1%):
44,234 Cendant Corp.(c).......................... 1,520
16,600 Procter & Gamble Co....................... 1,325
10,000 U.S. Rentals, Inc.(b)..................... 235
-------
3,080
-------
Correctional Facilities (0.3%):
7,100 Corrections Corp. of America(b)........... 263
17,200 Wackenhut Corrections Corp.(b)(c)......... 462
-------
725
-------
Cosmetics/Personal Care (0.6%):
9,100 Gillette Co. ............................. 914
23,500 Rexall Sundown, Inc.(b)(c)................ 709
-------
1,623
-------
Data Processing & Reproduction (0.4%):
6,900 Applied Graphics Technologies, Inc.(b).... 367
11,450 Deltek Systems, Inc.(b)................... 181
13,900 Fiserv, Inc.(b)........................... 683
-------
1,231
-------
Diversified Operations (0.6%):
19,700 Cognizant Corp.(c)........................ 878
3,800 Corning, Inc.............................. 141
17,200 Tyco International Ltd.(b)(c)............. 775
-------
1,794
-------
</TABLE>
Continued
92
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Educational Services (0.3%):
5,800 Apollo Group, Inc.(b)(c)................................... $ 274
11,300 Sylvan Learning Systems, Inc.(b)(c)........................ 441
-------
715
-------
Electrical & Electronic (0.9%):
14,700 Emerson Electric Co........................................ 830
16,100 General Electric Co........................................ 1,180
9,600 International Manufacturing Services....................... 70
16,196 Molex, Inc................................................. 466
-------
2,546
-------
Environmental Services (0.4%):
30,925 USA Waste Services, Inc.(b)(c)............................. 1,214
-------
Financial Services (3.3%):
13,800 American Express Co........................................ 1,232
15,000 Associates First Capital Corp.(c).......................... 1,067
37,550 Concord EFS, Inc.(b)....................................... 934
19,100 Federal Home Loan Mortgage Corp............................ 801
14,000 Finova Group, Inc. ........................................ 696
9,600 First Alliance Corp.(b).................................... 176
5,500 FIRSTPLUS Financial Group, Inc.(b)(c)...................... 211
13,800 Franchise Mortgage Acceptance Co.(b)....................... 254
7,300 Household International, Inc............................... 931
30,764 Imperial Credit Industries, Inc.(b)........................ 631
37,200 MBNA Corp.(c).............................................. 1,016
9,750 Metris Cos., Inc.(c)....................................... 334
14,000 Nationwide Financial Services.............................. 506
7,100 Sirrom Capital Corp........................................ 370
-------
9,159
-------
Food & Beverage (0.3%):
10,900 The Coca-Cola Co........................................... 726
-------
Food & Household Products (0.1%):
8,100 Sunbeam Corp.(c)........................................... 341
-------
Food Products & Services (0.6%):
8,000 CPC International, Inc.(b)(c).............................. 862
6,400 Fine Host Corp.(b)......................................... 65
10,400 Safeway, Inc.(b)(c)........................................ 658
-------
1,585
-------
Forest & Paper Products (0.2%):
11,200 Kimberly-Clark Corp........................................ 552
-------
Funeral Services (0.9%):
11,600 Equity Corp. International(b).............................. 268
50,000 Service Corp. International(c)............................. 1,847
9,500 Stewart Enterprises........................................ 443
-------
2,558
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health & Personal Care (0.1%):
10,600 Alberto-Culver Co.(c)...................................... $ 286
-------
Health Care - Services (1.9%):
22,000 American Oncology Resources, Inc.(b)....................... 352
10,850 Capital Senior Living Corp.(b)(c).......................... 113
9,000 Carematrix Corp.(b)(c)..................................... 259
8,200 Concentra Managed Care, Inc.(b)............................ 277
10,900 Health Care & Retirement Corp.(b).......................... 439
33,150 Health Management Associates, Inc.(b)...................... 837
21,300 HEALTHSOUTH Corp.(b)(c).................................... 591
14,900 NCS HealthCare, Inc., Class A(b)(c)........................ 393
35,800 Orthodontic Centers of America, Inc.(b).................... 595
14,900 Parexel International Corp.(b)............................. 551
8,600 Quintiles Transnational Corp.(b)(c)........................ 329
12,650 Serologicals Corp.(b)...................................... 329
10,983 Total Renal Care Holdings, Inc.(b)......................... 302
-------
5,367
-------
Health Care Products & Services (0.2%):
8,600 Advanced Health Corp.(b)(c)................................ 137
10,500 Envoy Corp.(b)(c).......................................... 305
-------
442
-------
Hotels & Lodging (0.4%):
12,800 Capstar Hotel(b)........................................... 439
11,500 Marriott International, Inc................................ 797
-------
1,236
-------
Industrial Goods & Services (0.7%):
11,100 Clorox Co.(c).............................................. 878
16,600 United Technologies Corp.(c)............................... 1,208
-------
2,086
-------
Insurance (2.2%):
12,150 American International Group, Inc.......................... 1,321
15,000 Conseco, Inc.(c)........................................... 682
14,000 Marsh & McLennan Cos., Inc................................. 1,044
20,600 MGIC Investment Corp.(c)................................... 1,370
44,700 SunAmerica, Inc.(c)........................................ 1,911
-------
6,328
-------
Manufactured Housing (0.0%):
6,350 Modtech, Inc.(b)........................................... 124
-------
Manufacturing - Consumer Goods (0.2%):
15,300 Newell Co.(c).............................................. 650
-------
Medical Equipment & Supplies (1.3%):
10,300 ESC Medical Systems Ltd.................................... 399
17,900 Guidant Corp............................................... 1,113
</TABLE>
Continued
93
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Medical Equipment & Supplies, continued:
9,700 Medquist, Inc.(b).......................................... $ 337
11,100 Medtronic, Inc.(c)......................................... 581
6,800 Molecular Devices Corp.(b)................................. 145
23,800 Omnicare, Inc.(c).......................................... 738
5,500 Sabratek Corp.(b).......................................... 158
5,900 Schick Technologies, Inc.(b)............................... 115
-------
3,586
-------
Office Equipment & Services (0.6%):
6,400 Electronics for Imaging, Inc.(b)........................... 106
8,300 Hewlett Packard Co......................................... 519
13,700 Xerox Corp................................................. 1,011
-------
1,636
-------
Oil & Gas (0.2%):
6,500 Schlumberger Ltd.(c)....................................... 523
-------
Oilfield Services & Equipment (0.6%):
4,600 Camco International, Inc. ................................. 293
6,800 Cooper Cameron Corp.(b).................................... 415
11,200 IRI International Corp.(b)................................. 157
8,300 Key Energy Group, Inc.(b).................................. 180
24,200 Newpark Resources, Inc.(b)................................. 423
11,500 Omni Energy Services(b)(c)................................. 135
-------
1,603
-------
Pharmaceuticals (2.4%):
35,100 Dura Pharmaceuticals, Inc.(b).............................. 1,611
20,000 Eli Lilly & Co.(c)......................................... 1,393
8,100 Johnson & Johnson.......................................... 534
13,700 Jones Medical Industries, Inc.(c).......................... 524
20,000 Pfizer, Inc................................................ 1,491
8,800 Warner-Lambert Co.(c)...................................... 1,091
-------
6,644
-------
Records Management (0.1%):
10,000 Iron Mountain, Inc.(b)..................................... 360
-------
Rental Equipment\Furniture (0.2%):
12,300 Rental Service Corp.(b).................................... 302
13,600 Renter's Choice, Inc.(b)................................... 279
-------
581
-------
Resorts & Entertainment (0.9%):
17,200 Carnival Cruise Lines...................................... 954
12,600 Regal Cinemas, Inc.(b)..................................... 351
6,700 Royal Caribbean Cruises Ltd................................ 357
31,600 Signature Resorts, Inc.(b)(c).............................. 691
13,800 Vistana, Inc.(b)........................................... 317
-------
2,670
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Restaurants (0.2%):
16,800 Landry's Seafood Restaurants(b)............................ $ 403
9,200 The Cheesecake Factory(b).................................. 281
-------
684
-------
Retail - Speciality Stores (0.5%):
20,675 Home Depot, Inc............................................ 1,217
13,275 Petco Animal Supplies, Inc.(b)............................. 319
-------
1,536
-------
Retail Stores (1.3%):
14,781 Consolidated Stores Corp.(b)(c)............................ 649
8,875 Dollar General Corp.(c).................................... 322
9,000 Lowe's Cos.(c)............................................. 429
11,400 MSC Industrial Direct Co., Inc.(c)......................... 483
11,600 The Men's Wearhouse, Inc.(b)............................... 403
21,150 U.S. Office Products Co.(b)(c)............................. 415
28,300 Walgreen Co................................................ 889
-------
3,590
-------
Savings & Loans\Thrift (0.2%):
18,000 Ocwen Financial Services Corp.(b).......................... 458
-------
Semiconductors (0.7%):
10,600 Applied Materials, Inc.(b)................................. 319
11,900 Intel Corp................................................. 837
6,200 KLA-Tencor Corp.(b)(c)..................................... 239
6,200 Texas Instruments(c)....................................... 279
5,600 Vitesse Semiconductor Corp.(b)............................. 211
-------
1,885
-------
Technology (0.7%):
7,200 ENCAD, Inc.(b)............................................. 198
17,200 Sanmina Corp.(b)(c)........................................ 1,165
16,350 Technology Solutions Co.(b)................................ 431
7,200 Uniphase Corp.(b)(c)....................................... 298
-------
2,092
-------
Technology - Software (0.6%):
8,200 Computer Sciences Corp.(b)(c).............................. 685
26,750 Visio Corp.(b)(c).......................................... 1,026
-------
1,711
-------
Telecommunications - Services & Equipment (2.3%):
13,000 ADC Telecommunications, Inc.(b)(c)......................... 543
19,700 AirTouch Communications, Inc.(b)........................... 819
8,900 Electric Lightwave(b)...................................... 132
12,700 Lucent Technologies, Inc.(c)............................... 1,014
10,400 McLeod USA, Inc.(b)........................................ 333
9,900 MRV Communications(b)...................................... 236
</TABLE>
Continued
94
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications - Services & Equipment, continued:
3,200 Newbridge Networks Corp.(b)............................... $ 112
9,950 Pacific Gateway Exchange, Inc.(b)......................... 535
10,300 PairGain Technologies, Inc.(b)(c)......................... 200
5,100 Qwest Communications International, Inc.(b)............... 303
11,300 SmarTalk Teleservices, Inc.(b)(c)......................... 257
11,300 Teleport Communications Group, Inc.(b)(c)................. 620
8,700 Tellabs, Inc.(b).......................................... 460
22,900 West TeleServices Corp.(b)................................ 275
19,200 WorldCom, Inc.(b)(c)...................................... 581
--------
6,420
--------
Wholesale Distribution (0.6%):
55,566 Brightpoint, Inc.(b)...................................... 771
10,400 CDW Computer Center, Inc.(b)(c)........................... 542
15,050 Richfood Holdings, Inc.................................... 425
--------
1,738
--------
Wholesale Distribution - Pharmaceuticals (0.6%):
24,200 Cardinal Health, Inc.(c).................................. 1,818
--------
Total Common Stocks 109,038
--------
FOREIGN COMMON STOCKS (8.7%):
ARGENTINA (0.1%):
Oil & Gas Exploration, Production & Services (0.1%):
12,000 YPF Sociedad Anonima, ADR................................. 410
--------
AUSTRALIA (0.2%):
Building Products/Construction (0.0%):
25,000 Leighton Holdings......................................... 87
--------
Diversified Operations (0.1%):
26,487 Smith (Howard) Ltd. ...................................... 220
--------
Pharmaceuticals (0.1%):
34,500 CSL Ltd. ................................................. 216
--------
523
--------
AUSTRIA (0.0%):
Engineering (0.0%):
800 Va Technologies AG........................................ 121
--------
BELGIUM (0.2%):
Diversified Operations (0.0%):
700 Barco N.V. ............................................... 128
--------
Retail Stores/Catalog (0.2%):
1,000 Colrayt SA................................................ 511
--------
639
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
BRAZIL (0.3%):
Banking (0.0%):
260,000 Banco Itau SA.............................................. $ 140
-------
Beverages & Tobacco (0.0%):
9,500 Compania Cervejaria Brahma, Sponsored ADR.................. 135
-------
Manufacturing - Consumer Goods (0.1%):
7,500 Bombardier, Inc., Class B.................................. 154
-------
Telecommunications (0.2%):
3,200 Telecommunicacoes Brasileiras, ADR......................... 372
-------
801
-------
CANADA (0.1%):
Computer Software (0.0%):
8,300 Discreet Logic, Inc. ...................................... 182
-------
Electronic Components/Instruments (0.1%):
19,500 CAE, Inc. ................................................. 153
-------
335
-------
CHILE (0.1%):
Telecommunications (0.1%):
11,800 CIA Telecomunicaciones de Chile SA, ADR.................... 353
-------
FINLAND (0.2%):
Computer Software (0.1%):
1,600 TT Tieto Oy--B Shares...................................... 180
-------
Diversified Operations (0.0%):
3,000 Huhtamaki Group............................................ 124
-------
Telecommunications (0.1%):
4,500 Nokia Corp., Sponsored ADR................................. 315
-------
619
-------
FRANCE (0.4%):
Engineering (0.1%):
960 Altran Technologies SA..................................... 294
-------
Machinery & Equipment (0.1%):
3,800 Sidel SA................................................... 252
-------
Office Equipment/Supplies (0.1%):
5,200 BIC ....................................................... 379
-------
Retail Stores/Catalog (0.1%):
640 Pinault-Printemps-Redoute SA............................... 342
-------
1,267
-------
GERMANY (0.6%):
Health Care (0.1%):
3,500 Schering AG................................................ 338
-------
</TABLE>
Continued
95
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Machinery & Equipment (0.2%):
1,130 Mannesmann AG(b).......................................... $ 568
--------
Manufacturing - Consumer Goods (0.3%):
5,040 Adidas AG................................................. 666
--------
1,572
--------
GREECE (0.0%):
Beverages & Tobacco (0.0%):
4,000 Hellenic Bottling Co SA................................... 93
--------
HONG KONG (0.3%):
Automobiles (0.0%):
158,000 Qingling Motors Co. ...................................... 77
--------
Electronic Components/Instruments (0.0%):
22,500 Johnson Electric Holding Ltd. ............................ 65
--------
Food Products & Services (0.1%):
72,000 Guangnan Holdings......................................... 59
130,000 Ng Fung Hong Ltd. ........................................ 137
--------
196
--------
Real Estate (0.0%):
18,600 Sun Hung Kai Properties Ltd. ............................. 130
--------
Utilities - Electrical & Gas (0.2%):
147,160 Hong Kong & China Gas Co. Ltd. ........................... 285
--------
753
--------
INDONESIA (0.0%):
Banking (0.0%):
108 PT Bank International Indonesia........................... 0
--------
ISRAEL (0.2%):
Computer Hardware (0.1%):
7,400 Nice Systems Ltd. ........................................ 311
--------
Pharmaceuticals (0.1%):
5,900 Teva Pharmaceutical Industries Ltd, ADR .................. 279
--------
590
--------
ITALY (0.3%):
Electronic Components/Instruments (0.0%):
6,500 Gewiss SpA................................................ 123
--------
Jewelry (0.2%):
60,000 Bulgari SpA............................................... 306
--------
Medical Equipment & Supplies (0.0%):
4,700 Safilo SpA(b)............................................. 122
--------
Telecommunications (0.1%):
45,000 Telecom Italia Mobile SpA................................. 208
--------
759
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
JAPAN (2.0%):
Computer Software (0.2%):
7,000 TDK Corp. ................................................ $ 530
--------
Electrical & Electronic (0.5%):
3,700 Keyence Corp. ............................................ 549
20,000 Matsushita Electric Works................................. 174
22,000 NEC Corp.................................................. 235
6,000 Rohm Co. ................................................. 614
--------
1,572
--------
Electronic Components/Instruments (0.2%):
7,200 Hirose Electric Co. Ltd. ................................. 370
21,000 Omron Corp. .............................................. 329
--------
699
--------
Food Products & Services (0.1%):
7,000 Matsumotokiyoshi.......................................... 269
--------
Health & Personal Care (0.1%):
5,000 Hoya Corp. ............................................... 158
--------
Health Care (0.0%):
1,000 Nichii Gakkan Co. ........................................ 35
--------
Manufacturing - Consumer Goods (0.3%):
20,000 Canon, Inc. .............................................. 467
8,000 Fuji Photo Film........................................... 308
--------
775
--------
Office Equipment & Services (0.2%):
35,000 Ricoh Co., Ltd. .......................................... 436
--------
Pharmaceuticals (0.3%):
14,000 Sankyo Co. Ltd. .......................................... 318
23,000 Takeda Chemical Industries................................ 658
--------
976
--------
Telecommunications (0.0%):
30,000 Denki Kogyo Co. Ltd. ..................................... 98
--------
Toys (0.1%):
1,900 Nintendo Co., Ltd. ....................................... 187
--------
5,735
--------
MALAYSIA (0.0%):
Engineering (0.0%):
40,000 United Engineers Ltd. .................................... 33
--------
MEXICO (0.3%):
Beverages & Tobacco (0.1%):
52,000 Fomento Economico Mexicano, Sa de CV...................... 416
--------
</TABLE>
Continued
96
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
MEXICO, CONTINUED:
Diversified Operations (0.1%):
40,000 Grupo Carso SA de CV........................................ $ 266
-------
Industrial Holding Company (0.1%):
185,000 Grupo Industrial Maseca SA de CV............................ 185
-------
867
-------
NETHERLANDS (0.6%):
Broadcasting & Publishing (0.2%):
19,200 Elsevier N.V. .............................................. 311
3,100 Wolters Kluwer N.V. ........................................ 400
-------
711
-------
Commercial Services (0.0%):
4,000 Getronics N.V. ............................................. 127
-------
Office Equipment & Services (0.4%):
8,448 Ahrend...................................................... 265
4,900 Oce-Van Der Grinten N.V. ................................... 535
-------
800
-------
1,638
-------
NEW ZEALAND (0.1%):
Agriculture (0.0%):
39,300 Fernz Corp. Ltd. ........................................... 102
-------
Consumer Goods & Services (0.1%):
41,819 Fisher & Paykel Ind. Ltd. .................................. 133
-------
235
-------
PORTUGAL (0.2%):
Telecommunications (0.2%):
11,000 Portugal Telecom SA, ADR.................................... 517
-------
RUSSIA (0.0%):
Oil & Gas Exploration, Production & Services (0.0%):
1,500 Lukoil Holdings, Sponsored ADR.............................. 138
-------
SINGAPORE (0.0%):
Diversified Operations (0.0%):
60,400 Singapore Technologies Industrial Corp. .................... 57
-------
ELECTRICAL & ELECTRONIC (0.0%):
55,000 Thakral Corp. Ltd. ......................................... 29
-------
86
-------
SOUTH AFRICA (0.1%):
Beverages & Tobacco (0.0%):
4,500 South African Breweries Ltd. ............................... 111
-------
Computer - Integrated Systems (0.1%):
26,156 Dimension Data Holdings Ltd.(b)............................. 113
-------
224
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
SPAIN (0.3%):
Apparel/Shoes (0.1%):
9,000 Cortefiel SA................................................ $ 181
-------
Beverages & Tobacco (0.1%):
2,700 Talbacalera SA.............................................. 219
-------
Commercial Services (0.1%):
33,000 Prosegur CIA de Seguridad SA................................ 331
-------
731
-------
SWEDEN (0.3%):
Engineering (0.2%):
12,000 Sandvik B................................................... 343
-------
Industrial Goods & Services (0.1%):
10,000 Atlas Copco AB.............................................. 299
-------
Metals (0.0%):
3,300 Assa Abloy AB-B............................................. 87
-------
729
-------
SWITZERLAND (0.5%):
Food Products & Services (0.2%):
345 Nestle SA................................................... 518
-------
Pharmaceuticals (0.3%):
200 Novartis AG................................................. 325
50 Roche Holdings AG--Genussschein............................. 497
-------
822
-------
1,340
-------
UNITED KINGDOM (1.3%):
Aerospace/Defense (0.1%):
11,000 British Aerospace PLC....................................... 315
5,100 Cobham PLC.................................................. 70
-------
385
-------
Air Transportation/Related (0.1%):
15,000 Airtours PLC................................................ 305
-------
Appliances & Household Products (0.0%):
13,000 D.F.S. Furniture Co. PLC.................................... 110
-------
Capital Goods (0.2%):
52,500 Powerscreen International PLC............................... 525
-------
Computer Software (0.2%):
26,157 Logica PLC.................................................. 498
-------
Engineering (0.1%):
21,000 Siebe PLC................................................... 394
-------
Food Products & Services (0.1%):
31,500 Compass Group PLC........................................... 386
-------
</TABLE>
Continued
97
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- --------------------------------------------------------- -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Machinery & Equipment (0.1%):
48,000 TT Group PLC............................................. $ 218
-------
Manufacturing - Consumer Goods (0.3%):
144,667 Halma PLC................................................ 277
121,000 Polypipe PLC............................................. 350
-------
627
-------
Metals (0.1%):
25,000 Johnson Matthey PLC...................................... 223
-------
3,671
-------
Total Foreign Common Stocks 24,779
-------
PREFERRED STOCKS (0.4%):
GERMANY (0.4%):
Computer Software (0.3%):
2,760 SAP AG................................................... 897
-------
Medical Equipment & Supplies (0.1%):
1,850 Fresenius AG............................................. 336
-------
Total Preferred Stocks 1,233
-------
REPURCHASE AGREEMENTS (6.2%):
17,512,000 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $17,404
Federal Home Loan Mortgage Assoc., 6.52%, 4/25/24,
market value--$17,862).................................. 17,512
-------
Total Repurchase Agreements 17,512
-------
GOVERNMENT OBLIGATIONS (15.3%):
Mortgage Pass Thru's (3.4%):
Government National Mortgage Assoc. (3.4%):
822 6.50%, 9/15/23, Pool #345871............................. 815
901 6.50%, 12/15/23, Pool #374650............................ 891
7,673 7.50%, 8/15/25, Pool # 780213............................ 7,887
-------
9,593
-------
U.S. Government Agencies (4.4%):
Federal National Mortgage Assoc. (4.4%):
3,000 7.55%, 3/27/07........................................... 3,088
7,019 7.00%, 10/15/23.......................................... 7,059
2,448 6.50%, 11/01/27.......................................... 2,413
-------
12,560
-------
U.S. Treasury Notes (7.5%):
2,710 6.25%, 3/31/99(c)........................................ 2,730
3,800 5.88%, 8/31/99........................................... 3,812
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
GOVERNMENT OBLIGATIONS, CONTINUED:
U.S. Treasury Notes, continued:
7,100 5.50%, 12/31/00............................................. $ 7,057
2,000 6.63%, 4/30/02.............................................. 2,065
700 6.88%, 5/15/06.............................................. 749
4,720 6.50%, 11/15/26(c).......................................... 5,038
-------
21,451
-------
Total Government Obligations 43,604
-------
CORPORATE BONDS (22.6%):
Banking (1.5%):
500 Continental Bank, N.A., 11.25%, 7/1/01,
Dtd 6/13/91................................................ 513
3,415 Swiss Bank, 7.75%, 9/1/26................................... 3,807
-------
4,320
-------
Financial (9.2%):
3,200 Associates Corp., NA, 6.50%, 7/15/02........................ 3,228
2,000 Beneficial Corp, 6.77%, 8/26/04............................. 2,050
2,500 Beneficial Corp., 12.88%, 8/1/13............................ 2,716
3,215 Fleet Capital Trust II, 7.92%, 12/11/26..................... 3,408
2,750 Ford Motor Credit, 8.20%, 2/15/02........................... 2,939
3,125 General Motors Acceptance Corp., 6.38%, 12/1/01............. 3,133
3,750 John Deere Capital, 6.35%, 3/15/01.......................... 3,771
3,000 Travelers Property Casualty, 6.75%, 11/15/06................ 3,053
1,750 USF & G Capital II, 8.47%, 1/10/27.......................... 1,923
-------
26,221
-------
Foreign Governments (2.2%):
3,000 Providence of Saskatchewan, 8.00%, 7/15/04.................. 3,285
2,700 Quebec Province, 13.00%, 10/1/13............................ 2,960
-------
6,245
-------
Industrial (7.5%):
3,000 Atlantic Richfield, 10.88%, 7/15/05......................... 3,806
2,700 Honeywell, Inc., 6.75%, 3/15/02............................. 2,747
3,240 ICI Wilmington, 6.95%, 9/15/04.............................. 3,333
3,825 Nike, Inc., 6.38%, 12/1/03.................................. 3,849
3,200 Northrop-Grumman, 7.88%, 3/1/26............................. 3,568
3,765 Sears Roebuck Co., 7.50%, 10/15/27.......................... 3,921
-------
21,224
-------
Transportation & Shipping (0.9%):
700 Erac USA Finance Co., 6.35%, 1/15/01........................ 701
1,850 Norfolk Southern Corp., 6.95%, 5/1/02....................... 1,901
-------
2,602
-------
</TABLE>
Continued
98
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Balanced Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
CORPORATE BONDS, CONTINUED:
Utilities - Electric (1.3%):
3,600 Cajun Electric Power, 9.52%, 3/15/19........................ $ 3,789
-------
Total Corporate Bonds 64,401
-------
ASSET BACKED SECURITIES (3.6%):
2,880 Banc One Auto Grantor Trust, 6.27%, 11/20/03................ 2,896
2,969 Daimler-Benz Auto Grantor Trust, 6.05%, 3/20/05............. 2,964
2,450 Discover Card Master Trust, 6.05%, 8/18/08.................. 2,415
1,561 Lehman FHA - Title 1 Loan Trust, 6.78%, 3/25/08............. 1,569
395 Structured Asset Securities Co., 7.50%, 8/25/26............. 400
-------
Total Asset Backed Securities 10,244
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS (2.3%):
Government Agency Backed CMO's (2.3%):
Federal National Mortgage Assoc.
3,000 8.00%, 2/25/21............................................. $ 3,106
Securitized Asset Sales, Inc.
3,500 7.53%, 3/25/24............................................. 3,562
--------
Total Collateralized Mortgage Obligations 6,668
--------
FLOATING RATE NOTES (1.0%):
Financial (1.0%):
3,000 Chase Capital II, 6.22%*, 2/1/27........................... 2,917
--------
Total Floating Rate Notes 2,917
--------
INVESTMENT COMPANIES (0.7%):
1,867,373 Parkstone Prime Obligation Fund Institutional Shares....... 1,867
--------
Total Investment Companies 1,867
--------
Total (Cost--$256,356) (a) $282,263
========
</TABLE>
- -------
Percentages indicated are based on net assets of $284,674.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $30,687
Unrealized depreciation...................................... (4,780)
-------
Net unrealized appreciation.................................. $25,907
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at December 31, 1997.
At December 31, 1997, the Fund's open forward currency contracts were as
follows:
<TABLE>
<CAPTION>
CONTRACT CONTRACT VALUE APPRECIATION DELIVERY
CURRENCY PRICE U.S. DOLLARS (DEPRECIATION) DATE
- -------- -------- -------------- -------------- --------
<S> <C> <C> <C> <C>
Long Contracts:
Hong Kong Dollar............... $43,946 $ 5,672 $ -- 1/2/98
Short Contracts:
U. S. Dollar................... $(5,672) $(5,672) $ -- 1/2/98
</TABLE>
See notes to financial statements.
99
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS (49.6%):
Advertising (0.2%):
2,800 HA-LO Industries, Inc.(b)................................... $ 73
-------
Apparel/Shoes (0.2%):
1,700 Brylane, Inc.(b)............................................ 84
-------
Banking (0.3%):
1,900 State Street Corp. ......................................... 111
-------
Broadcasting & Publishing (1.2%):
6,500 CanWest Global Communications Corp. ........................ 117
2,300 Chancellor Media Corp.(b)(c)................................ 172
1,450 Clear Channel Communications, Inc.(c)....................... 115
1,300 Consolidated Graphics, Inc.(b).............................. 61
-------
465
-------
Building Products (0.2%):
2,950 Royal Group Technologies Ltd. .............................. 68
-------
Business Services (2.6%):
3,000 Analog Devices, Inc.(b)(c).................................. 83
1,600 Automatic Data Processing, Inc. ............................ 98
3,000 BA Merchant Services, Inc.(b)............................... 53
1,200 Boron, Lepore & Assoc., Inc.(b)............................. 33
2,800 Cintas Corp. ............................................... 109
1,500 International Telecommunications Data Systems, Inc.(b)...... 48
1,800 NCO Group, Inc.(b).......................................... 46
1,300 NOVA Corp (Georgia)(b)...................................... 33
2,200 Novacare Employee Services(b)............................... 18
3,650 Paychex, Inc. .............................................. 185
1,900 Registry, Inc.(c)........................................... 87
1,200 RWD Technologies, Inc.(b)................................... 22
1,400 SOS Staffing Services, Inc.(b).............................. 26
2,900 Staff Leasing, Inc.(b)...................................... 55
4,800 SunGard Data Systems, Inc.(b)(c)............................ 149
-------
1,045
-------
Chemicals (0.3%):
2,400 Monsanto Co.(c)............................................. 101
-------
Computer Hardware (0.7%):
2,050 Apex PC Solutions, Inc.(b).................................. 45
1,600 Box Hill Systems Corp.(b)................................... 17
2,200 EMC Corp.(c)................................................ 60
1,000 Insight Enterprises......................................... 37
1,300 ONTRACK Data International(b)............................... 32
2,000 Sun Microsystems, Inc.(b)................................... 80
-------
271
-------
Computer Software & Peripherals (6.2%):
900 American Online, Inc.(b).................................... 80
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Computer Software & Peripherals, continued:
2,350 Aspen Technologies, Inc.(b)................................. $ 80
1,300 Axnet Technologies, Inc.(b)................................. 22
2,000 Baan Co. N.V.(b)............................................ 66
3,700 BMC Software, Inc.(b)(c).................................... 243
6,700 Cadence Design Systems, Inc.(b)(c).......................... 164
5,550 Cambridge Technology Partners, Inc.(b)...................... 231
1,300 CBT Group PLC(b)............................................ 107
3,900 Cisco Systems, Inc.(b)...................................... 217
1,700 CyberMedia, Inc.(b)(c)...................................... 26
3,400 First Data Corp............................................. 99
1,100 HNC Software(b)............................................. 47
2,200 JDA Software Group, Inc.(b)................................. 77
1,600 Logility, Inc.(b)........................................... 16
1,200 MEMCO Software, Inc......................................... 24
1,400 Microsoft, Inc.(b).......................................... 181
3,600 Parametric Technology Corp.(b).............................. 171
2,800 Pegasystems, Inc.(b)(c)..................................... 57
11,000 PeopleSoft, Inc.(b)......................................... 429
3,750 VERITAS Software Corp.(b)................................... 191
-------
2,528
-------
Consumer Goods & Services (1.2%):
6,684 Cendant Corp.(c)............................................ 229
2,600 Procter & Gamble Co......................................... 208
2,200 U.S. Rentals, Inc.(b)....................................... 52
-------
489
-------
Correctional Facilities (0.4%):
1,600 Corrections Corp. of America(b)............................. 59
3,100 Wackenhut Corrections Corp.(b).............................. 84
-------
143
-------
Cosmetics/Personal Care (0.7%):
1,400 Gillette Co. ............................................... 140
4,400 Rexall Sundown, Inc.(b)(c).................................. 133
-------
273
-------
Data Processing & Reproduction (0.6%):
1,200 Applied Graphics Technologies, Inc.(b)...................... 64
2,100 Deltek Systems, Inc.(b)..................................... 33
3,100 Fiserv, Inc.(b)............................................. 152
-------
249
-------
Diversified Operations (0.9%):
3,100 Cognizant Corp. ............................................ 139
600 Corning, Inc. .............................................. 22
7,500 Smith (Howard) Ltd. ........................................ 62
2,600 Tyco International Ltd.(b)(c)............................... 117
-------
340
-------
</TABLE>
Continued
100
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Educational Services (0.4%):
1,250 Apollo Group, Inc.(b)(c).................................... $ 59
2,500 Sylvan Learning Systems, Inc.(b)(c)......................... 98
-------
157
-------
Electrical & Electronic (1.1%):
2,300 Emerson Electric Co. ....................................... 130
2,500 General Electric Co. ....................................... 183
1,800 International Manufacturing Services........................ 13
3,687 Molex, Inc. ................................................ 106
-------
432
-------
Environmental Services (0.6%):
5,687 USA Waste Services, Inc.(b)(c).............................. 223
-------
Financial Services (3.8%):
2,100 American Express Co. ....................................... 186
2,300 Associates First Capital Corp.(c)........................... 164
7,400 Concord EFS, Inc.(b)........................................ 184
3,000 Federal Home Loan Mortgage Corp. ........................... 126
3,000 Finova Group, Inc. ......................................... 149
1,750 First Alliance Corp.(b)..................................... 32
1,200 FIRSTPLUS Financial Group, Inc.(b).......................... 46
2,600 Franchise Mortgage Acceptance Co.(b)........................ 48
1,100 Household International, Inc. .............................. 140
5,800 Imperial Credit Industries, Inc.(b)......................... 119
5,700 MBNA Corp.(c)............................................... 156
1,800 Metris Cos., Inc.(c)........................................ 62
2,600 Nationwide Financial Services............................... 94
1,300 Sirrom Capital Corp. ....................................... 68
-------
1,574
-------
Food & Beverage (0.3%):
1,700 The Coca-Cola Co. .......................................... 113
-------
Food & Household Products (0.2%):
1,800 Sunbeam Corp.(c)............................................ 76
-------
Food Products & Services (0.6%):
1,200 CPC International, Inc.(b)(c)............................... 129
1,250 Fine Host Corp.(b).......................................... 13
1,550 Safeway, Inc.(b)(c)......................................... 98
-------
240
-------
Forest & Paper Products (0.2%):
1,700 Kimberly-Clark Corp. ....................................... 84
-------
Funeral Services (1.3%):
2,200 Equity Corp. International(b)............................... 51
9,700 Service Corp. International(c).............................. 358
2,200 Stewart Enterprises......................................... 103
-------
512
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Health & Personal Care (0.1%):
2,200 Alberto-Culver Co.(c)....................................... $ 59
-------
Health Care - Services (2.6%):
4,000 American Oncology Resources, Inc.(b)........................ 64
2,000 Capital Senior Living Corp.(b).............................. 21
1,600 Carematrix Corp.(b)(c)...................................... 46
1,500 Concentra Managed Care, Inc.(b)............................. 51
2,500 Health Care & Retirement Corp.(b)........................... 101
7,650 Health Management Associates, Inc.(b)....................... 193
3,300 HEALTHSOUTH Corp.(b)........................................ 92
2,700 NCS HealthCare, Inc., Class A(b)............................ 71
6,700 Orthodontic Centers of America, Inc.(b)..................... 111
2,800 Parexel International Corp.(b).............................. 104
2,200 Quintiles Transnational Corp.(b)(c)......................... 84
2,350 Serologicals Corp.(b)....................................... 61
2,083 Total Renal Care Holdings, Inc.(b).......................... 57
-------
1,056
-------
Health Care Products & Services (0.2%):
1,600 Advanced Health Corp.(b)(c)................................. 25
1,900 Envoy Corp.(b)(c)........................................... 56
-------
81
-------
Hotels & Lodging (0.6%):
2,800 Capstar Hotel(b)............................................ 96
1,800 Marriott International, Inc. ............................... 125
-------
221
-------
Industrial Goods & Services (0.8%):
1,700 Clorox Co.(c)............................................... 134
2,500 United Technologies Corp.(c)................................ 182
-------
316
-------
Insurance (2.5%):
1,800 American International Group, Inc. ......................... 196
2,300 Conseco, Inc.(c)............................................ 105
2,100 Marsh & McLennan Cos., Inc. ................................ 157
2,600 MGIC Investment Corp.(c).................................... 173
8,550 SunAmerica, Inc.(c)......................................... 364
-------
995
-------
Manufactured Housing (0.1%):
1,100 Modtech, Inc.(b)............................................ 21
-------
Manufacturing - Consumer Goods (0.4%):
3,500 Newell Co.(c)............................................... 149
-------
Medical Equipment & Supplies (1.7%):
1,900 ESC Medical Systems Ltd. ................................... 74
3,200 Guidant Corp. .............................................. 199
</TABLE>
Continued
101
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Medical Equipment & Supplies, continued:
1,800 Medquist, Inc.(b)........................................... $ 63
1,700 Medtronic, Inc.(c).......................................... 89
1,300 Molecular Devices Corp.(b).................................. 28
5,300 Omnicare, Inc. ............................................. 164
1,050 Sabratek Corp.(b)........................................... 30
1,200 Schick Technologies, Inc.(b)................................ 23
-------
670
-------
Office Equipment & Services (0.7%):
1,500 Electronics for Imaging, Inc.(b)(c)......................... 25
1,400 Hewlett Packard Co. ........................................ 88
2,100 Xerox Corp. ................................................ 154
-------
267
-------
Oil & Gas (0.2%):
1,000 Schlumberger Ltd.(c)........................................ 81
-------
Oilfield Services & Equipment (0.8%):
1,000 Camco International, Inc. .................................. 64
1,500 Cooper Cameron Corp.(b)..................................... 92
2,100 IRI International Corp.(b).................................. 29
1,500 Key Energy Group, Inc.(b)................................... 33
5,400 Newpark Resources, Inc.(b).................................. 93
2,100 Omni Energy Services(b)(c).................................. 25
-------
336
-------
Pharmaceuticals (2.7%):
7,200 Dura Pharmaceuticals, Inc.(b)............................... 329
3,000 Eli Lilly & Co.(c).......................................... 209
1,200 Johnson & Johnson........................................... 79
2,500 Jones Medical Industries, Inc.(c)........................... 96
3,000 Pfizer, Inc. ............................................... 224
1,400 Warner-Lambert Co.(c)....................................... 174
-------
1,111
-------
Records Management (0.2%):
1,900 Iron Mountain, Inc.(b)...................................... 68
-------
Rental Equipment\Furniture (0.3%):
2,200 Rental Service Corp.(b)..................................... 54
2,500 Renter's Choice, Inc.(b).................................... 51
-------
105
-------
Resorts & Entertainment (1.3%):
3,300 Carnival Cruise Lines....................................... 182
2,500 Regal Cinemas, Inc.(b)...................................... 70
1,500 Royal Caribbean Cruises Ltd. ............................... 80
6,300 Signature Resorts, Inc.(b).................................. 138
2,600 Vistana, Inc.(b)............................................ 60
-------
530
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Restaurants (0.3%):
3,100 Landry's Seafood Restaurants(b)............................. $ 74
1,700 The Cheesecake Factory(b)................................... 52
-------
126
-------
Retail - Speciality Stores (0.6%):
3,150 Home Depot, Inc. ........................................... 185
2,500 Petco Animal Supplies, Inc.(b).............................. 60
-------
245
-------
Retail Stores (1.7%):
3,275 Consolidated Stores Corp.(b)(c)............................. 143
2,000 Dollar General Corp. ....................................... 73
1,400 Lowe's Cos.(c).............................................. 67
2,600 MSC Industrial Direct Co., Inc.(c).......................... 110
2,100 The Men's Wearhouse, Inc.(b)................................ 73
4,650 U.S. Office Products Co.(b)(c).............................. 91
4,300 Walgreen Co. ............................................... 135
-------
692
-------
Savings & Loans\Thrift (0.3%):
4,000 Ocwen Financial Services Corp.(b)........................... 102
-------
Semiconductors (0.8%):
1,600 Applied Materials, Inc.(b).................................. 48
1,900 Intel Corp. ................................................ 134
1,000 KLA-Tencor Corp.(b)......................................... 39
1,000 Texas Instruments(c)........................................ 45
1,200 Vitesse Semiconductor Corp.(b).............................. 45
-------
311
-------
Technology (1.0%):
1,300 ENCAD, Inc.(b).............................................. 36
3,400 Sanmina Corp.(b)............................................ 230
3,000 Technology Solutions Co.(b)................................. 79
1,600 Uniphase Corp.(b)(c)........................................ 66
-------
411
-------
Technology - Software (0.9%):
1,800 Computer Sciences Corp.(b)(c)............................... 150
5,250 Visio Corp.(b)(c)........................................... 202
-------
352
-------
Telecommunications - Services & Equipment (2.8%):
3,000 ADC Telecommunications, Inc.(b)(c).......................... 125
2,850 AirTouch Communications, Inc.(b)............................ 118
2,000 Electric Lightwave(b)....................................... 30
2,000 Lucent Technologies, Inc.(c)................................ 158
2,300 McLeod USA, Inc.(b)......................................... 74
2,200 MRV Communications(b)....................................... 53
</TABLE>
Continued
102
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED
Telecommunications - Services & Equipment, continued:
700 Newbridge Networks Corp.(b)................................. $ 24
1,800 Pacific Gateway Exchange, Inc.(b)........................... 97
2,300 PairGain Technologies, Inc.(b)(c)........................... 45
1,100 Qwest Communications International, Inc.(b)................. 65
2,050 SmarTalk Teleservices, Inc.(b)(c)........................... 47
1,800 Teleport Communcications Group, Inc.(b)(c).................. 99
1,300 Tellabs, Inc.(b)(c)......................................... 69
5,300 West TeleServices Corp.(b).................................. 64
2,900 WorldCom, Inc.(b)(c)........................................ 88
-------
1,156
-------
Wholesale Distribution (0.9%):
10,900 Brightpoint, Inc.(b)........................................ 152
2,100 CDW Computer Center, Inc.(b)(c)............................. 109
3,400 Richfood Holdings, Inc. .................................... 96
-------
357
-------
Wholesale Distribution - Pharmaceuticals (0.9%):
4,800 Cardinal Health, Inc.(c).................................... 361
-------
Total Common Stocks 19,830
-------
FOREIGN COMMON STOCKS (16.1%):
ARGENTINA (0.3%):
Oil & Gas Exploration, Production & Services (0.3%):
3,000 YPF Sociedad Anonima, ADR................................... 103
-------
AUSTRALIA (0.3%):
Building Products/Construction (0.1%):
13,000 Leighton Holdings........................................... 45
-------
Pharmaceuticals (0.2%):
12,000 CSL Ltd. ................................................... 75
-------
120
-------
AUSTRIA (0.1%):
Engineering (0.1%):
210 Va Technologies............................................. 32
-------
BELGIUM (0.4%):
Diversified Operations (0.1%):
150 Barco N.V. ................................................. 28
-------
Retail Stores/Catalog (0.3%):
250 Colrayt SA.................................................. 127
-------
155
-------
BRAZIL (0.4%):
Beverages & Tobacco (0.1%):
2,200 Compania Cervejaria Brahma, Sponsored ADR................... 31
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
BRAZIL, CONTINUED:
Telecommunications (0.3%):
1,000 Telecommunicacoes Brasileiras, ADR.......................... $ 117
-------
148
-------
CANADA (0.3%):
Computer Software (0.1%):
1,550 Discreet Logic, Inc. ....................................... 34
-------
Electronic Components/Instruments (0.1%):
6,000 CAE, Inc. .................................................. 47
-------
Manufacturing - Consumer Goods (0.1%):
1,700 Bombardier, Inc., Class B................................... 35
-------
116
-------
CHILE (0.2%):
Telecommunications (0.2%):
3,000 CIA Telecomunicaciones de Chile SA, ADR..................... 90
-------
FINLAND (0.4%):
Computer Software (0.1%):
350 TT Tieto Oy--B Shares....................................... 39
-------
Diversified Operations (0.1%):
1,300 Huhtamaki Group............................................. 54
-------
Telecommunications (0.2%):
1,000 Nokia Corp., Sponsored ADR.................................. 70
-------
163
-------
FRANCE (0.8%):
Engineering (0.2%):
270 Altran Technologies SA...................................... 83
-------
Machinery & Equipment (0.2%):
1,200 Sidel SA.................................................... 80
-------
Office Equipment/Supplies (0.2%):
1,200 BIC......................................................... 88
-------
Retail Stores/Catalog (0.2%):
165 Pinault-Printemps-Redoute SA................................ 87
-------
338
-------
GERMANY (1.0%):
Health Care (0.2%):
900 Schering AG................................................. 87
-------
Machinery & Equipment (0.4%):
300 Mannesmann AG............................................... 151
-------
Manufacturing - Consumer Goods (0.4%):
1,265 Adidas AG................................................... 167
-------
405
-------
</TABLE>
103
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
GREECE (0.1%):
Beverages & Tobacco (0.1%):
2,400 Hellenic Bottling Co SA..................................... $ 56
-------
HONG KONG (0.4%):
Automobiles (0.0%):
33,000 Qingling Motors Co. ........................................ 16
-------
Electronic Components/Instruments (0.0%):
6,000 Johnson Electric Holdings Ltd. ............................. 17
-------
Food Products & Services (0.1%):
16,000 Guangnan Holdings........................................... 13
28,000 Ng Fung Hong Ltd. .......................................... 30
-------
43
-------
Real Estate (0.1%):
5,000 Sun Hung Kai Properties Ltd. ............................... 35
-------
Utilities - Eletrical & Gas (0.2%):
30,800 Hong Kong & China Gas Co. Ltd. ............................. 59
-------
170
-------
ISRAEL (0.3%):
Computer Hardware (0.1%):
1,350 Nice Systems Ltd. .......................................... 57
-------
Pharmaceuticals (0.2%):
1,500 Teva Pharmaceutical Industries Ltd, ADR..................... 71
-------
128
-------
ITALY (0.5%):
Electronic Components/Instruments (0.1%):
1,800 Gewiss SpA.................................................. 34
-------
Jewelry (0.2%):
13,200 Bulgari SpA................................................. 68
-------
Medical Equipment & Supplies (0.1%):
1,000 Safilo SpA(b)............................................... 26
-------
Telecommunications (0.1%):
12,000 Telecom Italia Mobile SpA................................... 55
-------
183
-------
JAPAN (3.8%):
Computer Software (0.4%):
2,000 TDK Corp. .................................................. 151
-------
Electrical & Electronic (0.6%):
6,000 NEC Corp. .................................................. 64
2,000 Rohm Co. ................................................... 205
-------
269
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
JAPAN, CONTINUED:
Electronic Components/Instruments (0.8%):
2,000 Hirose Electric Co. Ltd. ................................... $ 103
1,000 Keyence Corp. .............................................. 149
6,000 Omron Corp. ................................................ 94
-------
346
-------
Food Products & Services (0.2%):
2,000 Matsumotokiyoshi............................................ 77
-------
Health & Personal Care (0.1%):
1,000 Hoya Corp. ................................................. 32
-------
Manufacturing - Consumer Goods (0.5%):
5,000 Canon, Inc. ................................................ 117
2,000 Fuji Photo Film............................................. 77
-------
194
-------
Office Equipment & Services (0.3%):
9,000 Ricoh Co. Ltd. ............................................. 112
-------
Pharmaceuticals (0.7%):
4,000 Sankyo Co. Ltd. ............................................ 91
6,000 Takeda Chemical Industries.................................. 171
-------
262
-------
Telecommunications (0.1%):
9,000 Denki Kogyo Co. Ltd. ....................................... 29
-------
Toys (0.1%):
500 Nintendo Co. Ltd. .......................................... 49
-------
1,521
-------
MALAYSIA (0.0%):
Engineering (0.0%):
9,000 United Engineers Ltd. ...................................... 7
-------
MEXICO (0.6%):
Beverages & Tobacco (0.3%):
15,000 Fomento Economico Mexicano, Sa de CV........................ 120
-------
Diversified Operations (0.2%):
11,000 Grupo Carso SA de CV........................................ 73
-------
Industrial Holding Company (0.1%):
50,000 Grupo Industrial Maseca SA de CV............................ 50
-------
243
-------
NETHERLANDS (1.1%):
Broadcasting & Publishing (0.5%):
5,000 Elsevier N.V. .............................................. 81
800 Wolters Kluwer N.V. ........................................ 103
-------
184
-------
</TABLE>
Continued
104
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principle Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
NETHERLANDS, CONTINUED:
Computer Software (0.1%):
900 Getronics N.V. ............................................. $ 29
-------
Office Equipment & Services (0.5%):
2,130 Ahrend...................................................... 67
1,300 Oce-Van Der Grinten NV...................................... 142
-------
209
-------
422
-------
NEW ZEALAND (0.1%):
Agriculture (0.1%):
10,000 Fernz Corp. Ltd. ........................................... 26
-------
Consumer Goods & Services (0.0%):
8,770 Fisher & Paykel Ind. Ltd. .................................. 28
-------
54
-------
PORTUGAL (0.4%):
Telecommunications (0.4%):
3,000 Portugal Telecom SA, ADR.................................... 141
-------
RUSSIA (0.1%):
Oil & Gas Exploration, Production & Services (0.1%):
300 Lukoil Holdings, Sponsored ADR.............................. 28
-------
SINGAPORE (0.1%):
Diversified Operations (0.1%):
21,000 Singapore Technologies Industrial Corp. .................... 20
-------
Electrical & Electronic (0.0%):
12,000 Thakral Corp. Ltd. ......................................... 6
-------
26
-------
SOUTH AFRICA (0.1%):
Beverages & Tobacco (0.0%):
1,100 South African Breweries Ltd. ............................... 27
-------
Computer - Integrated Systems (0.1%):
6,036 Dimension Data Holdings Ltd. ............................... 26
-------
53
-------
SPAIN (0.5%):
Apparel/Shoes (0.1%):
2,400 Cortefiel SA................................................ 48
-------
Beverages & Tobacco (0.1%):
600 Talbacalera SA.............................................. 49
-------
Commercial Services (0.3%):
9,500 Prosegur, CIA de Seguridad SA............................... 95
-------
192
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
SWEDEN (0.5%):
Engineering (0.2%):
3,200 Sandvik B................................................... $ 91
-------
Industrial Goods & Services (0.2%):
2,300 Atlas Copco AB.............................................. 69
-------
Metals (0.1%):
750 Assa Abloy AB-B............................................. 20
-------
180
-------
SWITZERLAND (0.9%):
Food Products & Services (0.3%):
90 Nestle SA................................................... 135
-------
Pharmaceuticals (0.6%):
50 Novartis AG................................................. 81
15 Roche Holdings AG-Genuss.................................... 149
-------
230
-------
365
-------
UNITED KINGDOM (2.4%):
Aerospace/Defense (0.2%):
2,800 British Aerospace PLC....................................... 80
1,100 Cobham PLC.................................................. 15
-------
95
-------
Air Transportation/Related (0.2%):
3,800 Airtours PLC................................................ 77
-------
Appliances & Household Products (0.1%):
6,000 D.F.S. Furniture Co. PLC.................................... 51
-------
Capital Goods (0.3%):
13,400 Powerscreen International PLC............................... 134
-------
Computer Software (0.3%):
6,529 Logica PLC.................................................. 124
-------
Engineering (0.3%):
6,000 Siebe PLC................................................... 113
-------
Food Products & Services (0.3%):
8,300 Compass Group PLC........................................... 102
-------
Machinery & Equipment (0.1%):
13,000 TT Group PLC................................................ 59
-------
Manufacturing - Consumer Goods (0.5%):
37,001 Halma PLC................................................... 71
31,000 Polypipe PLC................................................ 89
-------
160
-------
</TABLE>
Continued
105
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
UNITED KINGDOM, CONTINUED:
Metals (0.1%):
6,500 Johnson Matthey PLC......................................... $ 58
-------
973
-------
Total Foreign Common Stocks 6,412
-------
CORPORATE BONDS (11.0%):
Banking (0.8%):
300,000 Swiss Bank, 7.75%, 9/1/26................................... 335
-------
Financial (3.1%):
300,000 Associates Corp., NA, 6.50%, 7/15/02........................ 301
200,000 Fleet Capital Trust II, 7.92%, 12/11/26..................... 212
250,000 Ford Motor Credit, 8.20%, 2/15/02........................... 267
230,000 General Motors Acceptance Corp., 6.38%, 12/1/01............. 231
225,000 Travelers Property Casualty, 6.75%, 11/15/06................ 229
-------
1,240
-------
Foreign Governments (1.5%):
320,000 Providence of Saskatchewan, 8.00%, 7/15/04.................. 351
230,000 Quebec Province, 13.00%, 10/1/13............................ 252
-------
603
-------
Government Agency (0.6%):
225,000 Fannie Mae, 7.55%, 3/27/07.................................. 232
-------
Industrial (4.7%):
350,000 Atlantic Richfield, 10.88%, 7/15/05......................... 444
230,000 Honeywell, Inc., 6.75%, 3/15/02............................. 234
300,000 ICI Wilmington, 6.95%, 9/15/04.............................. 309
350,000 Northrop-Grumman, 7.88%, 3/1/26............................. 390
115,000 Sears Roebuck Acceptance, 6.38%, 11/25/02................... 115
350,000 Sears Roebuck Co., 7.50%, 10/15/27.......................... 364
-------
1,856
-------
Transportation & Shipping (0.3%):
130,000 Norfolk Southern Corp., 6.95%, 5/1/02....................... 134
-------
Total Corporate Bonds 4,400
-------
FLOATING RATE NOTES (0.3%):
Financial (0.3%):
130,000 Chase Capital II, 6.22%*, 2/1/27............................ 126
-------
Total Floating Rate Notes 126
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
ASSET BACKED SECURITIES (1.7%):
164,571 Banc One Auto Grantor Trust, 6.27%, 11/20/03................ $ 165
278,311 Daimler-Benz Auto Grantor Trust, 6.05%, 3/20/05............. 279
250,000 Discover Card Master Trust, 6.05%, 8/18/08.................. 246
-------
Total Asset Backed Securities 690
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.4%):
GOVERNMENT AGENCY BACKED CMO'S (1.4%):
Federal National Mortgage Assoc.:
325,000 8.00%, 2/25/21.............................................. 336
-------
Securitized Asset Sales, Inc.:
200,000 7.53%, 3/25/24.............................................. 204
-------
Total Collateralized Mortgage Obligations 540
-------
MONEY MARKET FUNDS - TAX EXEMPT (0.1%):
23,649 Parkstone Bank of California................................ 24
-------
Total Money Market Funds - Tax Exempt 24
-------
PREFERRED STOCKS (0.9%):
BRAZIL (0.1%):
Banking (0.1%):
60,000 Banco Itau SA(b)............................................ 32
-------
GERMANY (0.8%):
Computer Software (0.6%):
700 SAP AG...................................................... 228
-------
Medical Equipment & Supplies (0.2%):
490 Fresenius AG................................................ 89
-------
317
-------
Total Preferred Stocks 349
-------
U.S. TREASURY NOTES (12.5%):
1,600,000 5.88%, 10/31/98............................................. 1,603
500,000 6.25%, 3/31/99.............................................. 504
730,000 6.38%, 4/30/99(c)........................................... 737
1,220,000 6.25%, 8/31/00.............................................. 1,236
35,000 6.50%, 8/31/01.............................................. 36
150,000 5.88%, 2/15/04.............................................. 151
680,000 6.50%, 11/15/26(c).......................................... 726
-------
Total U.S. Treasury Notes 4,993
-------
</TABLE>
Continued
106
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Aggressive Allocation Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
REPURCHASE AGREEMENTS (5.2%):
2,096,000 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $2,565
Federal Home Loan Mortgage Corp., 6.45%, 3/15/24, market
value--$2,138)............................................ $ 2,096
-------
Total Repurchase Agreements 2,096
-------
</TABLE>
- -------
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
INVESTMENT COMPANIES (0.7%):
281,952 Parkstone Prime Obligation Fund Institutional Shares........ $ 282
-------
Total Investment Companies 282
-------
Total (Cost--$36,259)(a) $39,742
=======
</TABLE>
Percentages indicated are based on net assets of $39,943.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $ 4,555
Unrealized depreciation............................ (1,072)
-------
Net unrealized appreciation........................ $ 3,483
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
107
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Equity Income Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (72.4%):
Apparel/Shoes (2.2%):
362,900 Intimate Brands, Inc.(b)................................... $ 8,732
--------
Banking (4.2%):
133,300 First Tennessee National Corp.(b).......................... 8,898
142,200 PNC Financial Corp......................................... 8,114
--------
17,012
--------
Building Products (2.3%):
182,600 Masco Corp.(b)............................................. 9,290
--------
Consumer Cyclicals (3.1%):
209,200 Penney (J.C.) & Co., Inc................................... 12,617
--------
Consumer Goods & Services (4.9%):
389,300 Dial Corp.(b).............................................. 8,102
123,700 Ralston-Ralston Purina Group(b)............................ 11,497
--------
19,599
--------
Electrical & Electronic (3.0%):
211,200 Emerson Electric Co........................................ 11,920
--------
Financial Services (3.0%):
449,818 MBNA Corp.(b).............................................. 12,286
--------
Food Products & Services (3.0%):
595,900 Flowers Industries, Inc.(b)................................ 12,253
--------
Forest & Paper Products (1.9%):
156,700 Kimberly-Clark Corp........................................ 7,727
--------
Health Care - Services (3.4%):
146,320 Bristol-Myers Squibb Co.................................... 13,846
--------
Industrial Goods & Services (2.4%):
131,600 United Technologies Corp.(b)............................... 9,582
--------
Insurance (1.2%):
51,233 Allstate Corp.............................................. 4,656
--------
Machinery & Equipment (2.4%):
222,000 Snap-On, Inc............................................... 9,685
--------
Office Equipment & Services (5.6%):
133,700 Pitney Bowes, Inc.......................................... 12,024
141,550 Xerox Corp................................................. 10,448
--------
22,472
--------
Oil & Gas (7.9%):
111,400 Atlantic Richfield Co...................................... 8,925
105,700 Mobil Corp................................................. 7,630
272,100 Occidental Petroleum Corp.(b).............................. 7,976
142,500 Royal Dutch Petroleum Co................................... 7,722
--------
32,253
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Oilfield Services & Equipment (1.7%):
213,600 Ultramar Diamond Shamrock Corp,............................ $ 6,809
--------
Pharmaceuticals (6.2%):
151,000 American Home Products Corp................................ 11,552
190,800 Eli Lilly & Co.(b)......................................... 13,283
--------
24,835
--------
Real Estate (1.6%):
95,400 CCA Prison Realty Trust.................................... 4,257
54,600 Mack Cali Realty Corp...................................... 2,239
--------
6,496
--------
Retail Stores (1.9%):
168,150 Sears Roebuck & Co......................................... 7,609
--------
Telecommunications - Services & Equipment (1.7%):
285,500 Frontier Corp.(b).......................................... 6,870
--------
Utilities - Electric (5.4%):
143,450 Duke Power Co.(b).......................................... 7,944
141,700 Florida Power & Light, Inc.(b)............................. 8,386
127,000 General Public Utility Corp................................ 5,350
--------
21,680
--------
Utilities - Gas (1.9%):
124,300 Consolidated Natural Gas Co.(b)............................ 7,520
--------
Utilities - Water (1.5%):
223,400 American Water Works, Inc.(b).............................. 6,102
--------
Total Common Stocks 291,851
--------
CONVERTIBLE BONDS (18.3%):
Financial Services (1.5%):
4,350,000 Solectron Corp., 6.00%, 3/1/06............................. 5,987
--------
Hotels & Lodging (4.8%):
4,480,000 Capstar Hotel Corp., 4.75%, 10/15/04....................... 4,463
6,325,000 Cendent, Inc., 4.75%, 3/1/03............................... 8,412
6,300,000 Signature Resorts, Inc., 5.75%, 1/15/07.................... 6,387
--------
19,262
--------
Industrial Goods & Services (2.8%):
3,965,000 Magna International, 5.00%, 10/15/02....................... 4,813
5,290,000 Renal Treatment Centers, 5.63%, 7/15/06.................... 6,334
--------
11,147
--------
Insurance (1.5%):
101,500 Allstate Corp., 6.76%, 4/15/98............................. 6,090
--------
Pharmaceuticals (1.8%):
6,685,000 Dura Pharmaceuticals, 3.50%, 8/1/02........................ 7,328
--------
</TABLE>
Continued
108
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
Equity Income Fund (Unaudited)
(Amounts in Thousands, except Shares or Principal Amount)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
CONVERTIBLE BONDS, CONTINUED:
Retail - Speciality Stores (3.1%):
9,470,000 Home Depot, Inc., 3.25%, 10/1/01, Callable 10/1/99 @
100.81................................................... $ 12,678
--------
Retail Stores (1.3%):
4,380,000 The Men's Wearhouse, 5.25%, 3/1/03........................ 5,103
--------
Technology (1.5%):
4,280,000 Analog Devices Corp., 3.50%, 12/1/00...................... 6,019
--------
Total Convertible Bonds 73,614
--------
PREFERRED STOCKS (7.0%):
Financial Services (5.5%):
85,900 Firstplus Times Trust Mandatory Exchange.................. 3,479
73,100 Morgan Stanley............................................ 5,807
50,700 SunAmerica, Inc........................................... 6,540
301,100 The Money Store, Inc...................................... 6,644
--------
22,470
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
Industrial Goods & Services (0.9%):
57,700 AirTouch Communications.................................... $ 3,595
--------
Utilities - Gas (0.6%):
111,800 Enron Oil & Gas Corp....................................... 2,306
--------
Total Preferred Stocks 28,371
--------
REPURCHASE AGREEMENTS (2.0%):
7,977,000 Goldman Sachs, 6.80%, 1/2/98 (Collateralized by $9,761
Federal Home Loan Mortgage Corp., 6.45%, 3/15/24, market
value--$8,137)............................................ 7,977
--------
Total Repurchase Agreements 7,977
--------
Total (Cost--$281,525)(a) $401,813
========
</TABLE>
- -------
Percentages indicated are based on net assets of $403,129.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $123,404
Unrealized depreciation............................ (3,116)
--------
Net unrealized appreciation........................ $120,288
========
</TABLE>
(b) All or a portion of this security has been loaned at December 31, 1997.
See notes to financial statements.
109
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
1. ORGANIZATION:
The Parkstone Group of Funds (the "Group") was organized on July 9, 1987, and
is registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as an open-end investment company established as a Massachusetts
business trust.
The Group is authorized to issue an unlimited number of shares without par
value. The Group presently offers shares of the Prime Obligations Fund, the
U.S. Government Obligations Fund, the 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, the Michigan Municipal
Bond Fund, the Conservative Allocation Fund, the Balanced Allocation Fund,
the Aggressive Allocation Fund, the Equity Income Fund and the Emerging
Markets 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 stocks 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 objective of the Michigan Municipal
Bond Fund is 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. The investment objective of the Emerging Markets Fund is to
seek long-term growth of capital from a portfolio of equity securities of
companies in emerging markets.
Continued
110
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
The Group has issued three classes of Fund shares in the Prime Obligations
Fund: Investor A Shares, Investor B Shares, and Institutional Shares and two
classes of Fund shares in each of the U.S. Government Obligations Fund, the
Tax-Free Fund and the Treasury Fund (collectively, "the money market funds"):
Investor A Shares and Institutional Shares. 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
Municipal Bond Fund, the Michigan Municipal Bond Fund, the Balanced
Allocation Fund and the Equity Income Fund: Investor A Shares, Investor B
Shares, Investor C Shares and Institutional Shares. The Group has only
offered Institutional Shares for the Conservative Allocation Fund and the
Aggressive Allocation Fund. The group has issued five classes of fund shares
in the Emerging Markets Fund: Investor A Shares, Investor B Shares, Investor
C Shares, Institutional Shares, and Investor Z Shares. The Investor A Shares
of the Funds other than money market funds (collectively, "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 and Investor C Shares
made within one year of purchase are subject to contingent deferred sales
charges in accordance with the Funds' prospectuses. The Investor Z Shares of
the Emerging Markets Fund shall be offered at the then-current net asset
value without the imposition of a front-end or contingent deferred sales
charge. 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 Shares, Investor B Shares 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, the Aggressive Allocation Fund and the
Emerging Markets 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.
Continued
111
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Discovery Fund, Balanced Allocation Fund, Aggressive
Allocation Fund and Emerging Markets 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, Aggressive
Allocation Fund and Emerging Markets 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.
Continued
112
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
FORWARD CURRENCY CONTRACTS:
The Funds may enter into a forward currency contract ("Forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the Forward fluctuates with changes
in currency exchange rates. The Forward is marked-to-market daily and the
change in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the Forward is closed, the Fund records a realized gain
or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. A Fund could be exposed to risk if
a counterparty is unable to meet the terms of a Forward or if the value of
the currency changes unfavorably.
LENDING PORTFOLIO SECURITIES:
In order to generate additional income, the Funds, 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 December 31, 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>
Large Capitalization Fund.................................. $ 82,055
Aggressive Allocation Fund................................. 8,510
Conservative Allocation Fund............................... 3,233
Mid Capitalization Fund.................................... 197,154
Equity Income Fund......................................... 78,831
Intermediate Government Fund............................... 16,059
Bond Fund.................................................. 34,302
Limited Maturity Bond Fund................................. 22,048
Balanced Allocation Fund................................... 49,079
U.S. Government Income Fund................................ 15,006
</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,
Continued
113
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
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 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, if any,
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
114
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
six-month period ended December 31, 1997 were as follows (amounts in
thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Small Capitalization Fund.............................. $ 282,543 $ 243,812
Mid Capitalization Fund................................ 203,739 255,602
Large Capitalization Fund.............................. 69,299 116,520
International Discovery Fund........................... 58,896 84,705
Limited Maturity Bond Fund............................. 280,030 260,391
Intermediate Government Obligations Fund............... 1,212,889 1,230,062
U.S. Government Income Fund............................ 575,674 560,521
Bond Fund.............................................. 2,185,770 2,199,378
Municipal Bond Fund.................................... 81,794 85,137
Michigan Municipal Bond Fund........................... 46,061 53,241
Conservative Allocation Fund........................... 14,157 8,963
Balanced Allocation Fund............................... 233,240 224,356
Aggressive Allocation Fund............................. 20,191 17,103
Equity Income Fund..................................... 74,808 144,435
Emerging Markets Fund.................................. -- --
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT TAX-FREE
OBLIGATIONS FUND (A) OBLIGATIONS FUND FUND TREASURY FUND
--------------------- ------------------- ------------------- -----------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- --------- --------- -------- --------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended December
31, 1997:
Investor A Shares:
Shares issued.......... $ 556,042 556,028 $ 292,567 292,590 $ 180,800 180,800 $ 407,074 407,074
Dividends reinvested... 4,759 4,759 734 734 484 484 282 282
Shares redeemed........ (576,681) (576,668) (311,483) (311,483) (166,879) (166,879) (416,946) (416,946)
---------- --------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ (15,880) (15,881) $ (18,182) (18,159) $ 14,405 14,405 $ (9,590) (9,590)
========== ========= ========= ======== ========= ======== =========== ==========
Investor B Shares:
Shares issued.......... $ 365 365 $ -- -- $ -- -- $ -- --
Dividends reinvested... 1 1 -- -- -- -- -- --
Shares redeemed........ (231) (231) -- -- -- -- -- --
---------- --------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 135 135 $ -- -- $ -- -- $ -- --
========== ========= ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 528,244 528,244 $ 174,873 174,852 $ 92,882 92,882 $ 443,586 443,585
Dividends reinvested... 3 3 -- -- -- -- -- --
Shares redeemed........ (510,870) (510,870) (212,448) (212,448) (79,793) (79,793) (453,716) (453,716)
---------- --------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ 17,377 17,377 $ (37,575) (37,596) $ 13,089 13,089 $ (10,130) (10,131)
========== ========= ========= ======== ========= ======== =========== ==========
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
========== ========= ========= ======== ========= ======== =========== ==========
</TABLE>
(a) Prime Obligations Fund--Investor B Shares inception date was September 26,
1997.
Continued
115
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
----------------- ----------------- ----------------- ----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- ------- -------- ------- -------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1997:
Investor A Shares:
Shares issued.......... $389,494 14,076 $138,349 8,533 $ 6,259 413 $ 4,552 288
Dividends reinvested... 8,345 326 15,034 1,093 1,847 134 1,402 96
Shares redeemed........ (379,475) (13,569) (135,385) (8,220) (1,625) (108) (4,981) (318)
-------- ------- -------- ------- -------- ------- -------- ------
Net increase........... $ 18,364 833 $ 17,998 1,406 $ 6,481 439 $ 973 66
======== ======= ======== ======= ======== ======= ======== ======
Investor B Shares:
Shares issued.......... $ 6,101 221 $ 1,721 110 $ 2,523 168 $ 1,168 75
Dividends reinvested... 2,254 90 4,415 338 685 50 434 31
Shares redeemed........ (4,695) (171) (1,966) (127) (319) (21) (1,035) (69)
-------- ------- -------- ------- -------- ------- -------- ------
Net increase........... $ 3,660 140 $ 4,170 321 $ 2,889 197 $ 567 37
======== ======= ======== ======= ======== ======= ======== ======
Investor C Shares:
Shares issued.......... $ 2,115 76 $ 484 30 $ 95 6 $ 284 18
Dividends reinvested... 742 30 407 31 9 1 32 2
Shares redeemed........ (1,244) (45) (507) (32) (14) (1) (143) (9)
-------- ------- -------- ------- -------- ------- -------- ------
Net increase........... $ 1,613 61 $ 384 29 $ 90 6 $ 173 11
======== ======= ======== ======= ======== ======= ======== ======
Institutional Shares:
Shares issued.......... $ 76,118 2,702 $ 51,860 3,306 $ 42,719 2,856 $ 39,865 2,568
Dividends reinvested... 20,267 779 67,176 4,836 23,972 1,731 7,665 519
Shares redeemed........ (81,002) (2,881) (103,460) (6,257) (82,884) (5,464) (36,656) (2,321)
-------- ------- -------- ------- -------- ------- -------- ------
Net increase
(decrease)............ $ 15,383 600 $ 15,576 1,885 $(16,193) (877) $ 10,874 766
======== ======= ======== ======= ======== ======= ======== ======
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
======== ======= ======== ======= ======== ======= ======== ======
</TABLE>
Continued
116
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<TABLE>
(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 six months ended
December 31, 1997:
Investor A Shares:
Shares issued.......... $ 12,467 1,312 $ 180 19 $ 8,604 937 $ 1,086 111
Dividends reinvested... 782 83 357 36 1,462 160 504 51
Shares redeemed........ (5,095) (536) (2,995) (306) (9,322) (1,014) (2,513) (256)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ 8,154 859 $ (2,458) (251) $ 744 83 $ (923) (94)
======== ======= ========= ======= ======== ======= ======== =======
Investor B Shares:
Shares issued.......... $ 169 18 $ 147 14 $ 3,352 365 $ 643 66
Dividends reinvested... 26 3 46 5 464 51 151 15
Shares redeemed........ (307) (33) (158) (15) (2,068) (225) (388) (39)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ (112) (12) $ 35 4 $ 1,748 191 $ 406 42
======== ======= ========= ======= ======== ======= ======== =======
Investor C Shares:
Shares issued.......... $ 3,230 347 $ 31 3 $ 112 12 $ 198 20
Dividends reinvested... 17 2 6 2 2 -- 15 1
Shares redeemed........ (1,219) (131) (5) (1) (32) (3) (151) (15)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase........... $ 2,028 218 $ 32 4 $ 82 9 $ 62 6
======== ======= ========= ======= ======== ======= ======== =======
Institutional Shares:
Shares issued.......... $ 45,867 4,826 $ 12,856 1,311 $ 27,417 2,983 $ 48,682 4,928
Dividends reinvested... 1,474 156 1,481 151 520 57 11,329 1,149
Shares redeemed........ (32,837) (3,458) (30,929) (3,150) (19,728) (2,145) (72,562) (7,317)
-------- ------- --------- ------- -------- ------- -------- -------
Net increase
(decrease)............ $ 14,504 1,524 $ (16,592) (1,688) $ 8,209 895 $(12,551) (1,240)
======== ======= ========= ======= ======== ======= ======== =======
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 $ -- -- $ 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)
======== ======= ========= ======= ======== ======= ======== =======
</TABLE>
Continued
117
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<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 six months ended
December 31, 1997:
Investor A Shares:
Shares issued.......... $ 903 85 $ 5,467 497 $ -- -- $ 1,367 102
Dividends reinvested... 293 28 774 71 -- -- 743 57
Shares redeemed........ (766) (72) (3,267) (296) -- -- (1,941) (145)
-------- ------ -------- ------- ---------- -------- -------- ------
Net increase........... $ 430 41 $ 2,974 272 $ -- -- $ 169 14
======== ====== ======== ======= ========== ======== ======== ======
Investor B Shares:
Shares issued.......... $ -- -- $ 633 57 $ -- -- $ 1,206 90
Dividends reinvested... 23 2 64 6 -- -- 252 19
Shares redeemed........ (189) (18) (328) (29) -- -- (508) (38)
-------- ------ -------- ------- ---------- -------- -------- ------
Net increase
(decrease)............ $ (166) (16) $ 369 34 $ -- -- $ 950 71
======== ====== ======== ======= ========== ======== ======== ======
Investor C Shares:
Shares issued.......... $ -- -- $ -- -- $ -- -- $ 285 21
Dividends reinvested... -- -- -- -- -- -- 35 3
Shares redeemed........ -- -- -- -- -- -- (128) (9)
-------- ------ -------- ------- ---------- -------- -------- ------
Net increase........... $ -- -- $ -- -- $ -- -- $ 192 15
======== ====== ======== ======= ========== ======== ======== ======
Institutional Shares:
Shares issued.......... $ 8,004 755 $ 24,411 2,218 $ 7,943 747 $ 36,852 2,754
Dividends reinvested... 363 34 830 75 379 36 9,636 738
Shares redeemed........ (14,062) (1,323) (15,828) (1,437) (2,729) (258) (35,082) (2,634)
-------- ------ -------- ------- ---------- -------- -------- ------
Net increase
(decrease)............ $ (5,695) (534) $ 9,413 856 $ 5,593 525 $ 11,406 858
======== ====== ======== ======= ========== ======== ======== ======
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
======== ====== ======== ======= ========== ======== ======== ======
</TABLE>
- -------
(a) Information for the year ended June 30, 1997 is 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 December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE EQUITY EMERGING
ALLOCATION FUND (A) INCOME FUND MARKETS FUND (B)
--------------------- ----------------- -------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
---------- --------- --------- ------ --------- --------
<S> <C> <C> <C> <C> <C> <C>
For the six months ended
December 31, 1997:
Investor A Shares:
Shares issued.......... $ -- -- $ 5,740 293 $ -- --
Dividends reinvested... -- -- 15,775 907 -- --
Shares redeemed........ -- -- (9,197) (463) -- --
---------- -------- --------- ------ --------- -------
Net increase........... $ -- -- $ 12,318 737 $ -- --
========== ======== ========= ====== ========= =======
Investor B Shares:
Shares issued.......... $ -- -- $ 3,664 186 $ -- --
Dividends reinvested... -- -- 3,818 221 -- --
Shares redeemed........ -- -- (1,380) (71) -- --
---------- -------- --------- ------ --------- -------
Net increase........... $ -- -- $ 6,102 336 $ -- --
========== ======== ========= ====== ========= =======
Investor C Shares:
Shares issued.......... $ -- -- $ 295 15 $ -- --
Dividends reinvested... -- -- 118 7 -- --
Shares redeemed........ -- -- (284) (13) -- --
---------- -------- --------- ------ --------- -------
Net increase........... $ -- -- $ 129 9 $ -- --
========== ======== ========= ====== ========= =======
Institutional Z
Shares:(a)
Shares issued.......... $ -- -- $ -- -- $ -- --
Dividends reinvested... -- -- -- -- -- --
Shares redeemed........ -- -- -- -- -- --
---------- -------- --------- ------ --------- -------
Net increase
(decrease)............ $ -- -- $ -- -- $ -- --
========== ======== ========= ====== ========= =======
Institutional Shares:
Shares issued.......... $ 6,813 621 $ 9,946 520 $ -- --
Dividends reinvested... 275 25 10,788 623 -- --
Shares redeemed........ (7,298) (669) (37,237) (1,888) -- --
---------- -------- --------- ------ --------- -------
Net increase
(decrease)............ $ (210) (23) $ (16,503) (745) $ -- --
========== ======== ========= ====== ========= =======
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) $ -- --
========== ======== ========= ====== ========= =======
</TABLE>
- -------
(a) Information for the year ended June 30, 1997 is for the period from
December 30, 1996 (commencement of operations) through June 30, 1997.
(b) For the period from December 29, 1997 (commencement of operations) through
December 31, 1997. Due to the short period in operation, figures were below
the thousand dollar threshold.
Continued
119
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to the Group by FIC. Gulfstream
Global Investors, Ltd. ("Gulfstream") serves as sub-investment adviser to the
Conservative Allocation Fund, the Balanced Allocation Fund, the Aggressive
Allocation Fund, the International Discovery Fund and the Emerging Markets
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 the Emerging Markets
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 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 six-month period ended
December 31, 1997, BISYS received $1,374,650 in commissions from sales of
shares of the variable net asset value funds of which $1,374,297 was
reallowed to other brokers and dealers. 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.
Continued
120
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the six-month period ended December 31, 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............. $ 84 $ 39 $ 17 $ 249
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............. $ 145 $ 150 $ 43 $ 128
12B-1 FEES INVESTOR B (A):
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.75% -- -- --
SHAREHOLDER SERVICE FEES INVESTOR B
(A):
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.25% -- -- --
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES....................... $ 148 $ 78 $ 51 $ 83
</TABLE>
Continued
121
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<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................... $440 $244 $107 $247
</TABLE>
Continued
122
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<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 reduction.... $169 $ 41 $352 $107
ADMINISTRATION FEES:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions... $ 45 $ 51 $ 62 $134
12B-1 FEES INVESTOR A:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.25% 0.25% 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.75% 0.75% 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.75% 0.75% 0.75% 0.75%
SHAREHOLDER SERVICE FEES
INVESTOR B:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.25% 0.25% 0.25% 0.25%
SHAREHOLDER SERVICE FEES
INVESTOR C:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)................... 0.25% 0.25% 0.25% 0.25%
TRANSFER AGENT AND MUTUAL
FUND ACCOUNTANT FEES...... $ 75 $ 92 $137 $149
</TABLE>
Continued
123
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. 0.74% 0.74% 1.00% 1.00%
Voluntary fee reduction............ $138 $238 $ 21 $352
ADMINISTRATION FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions........... $ 72 $125 -- --
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. 0.25% 0.25% -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. 0.75% 0.75% -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. -- -- -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR
B:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. 0.25% 0.25% -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR
C:
Annual fee before voluntary fee re-
ductions
(percentage of average net as-
sets)............................. -- -- -- 0.25%
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES..................... $ 60 $ 93 $ 11 $126
</TABLE>
Continued
124
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY EMERGING
ALLOCATION INCOME MARKETS
FUND FUND FUND(C)
---------- ------ --------
<S> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. 1.00% 1.00% 1.25%
Voluntary fee reduction.............................. $ 31 -- --
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. 0.20% 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. -- 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. -- 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. -- 0.75% 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. -- 0.25% 0.25%
SHAREHOLDER SERVICE FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets).................. -- 0.25% 0.25%
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES....... $ 14 $243 --
</TABLE>
- -------
(a) Commencement of operations for the Prime Obligations Fund was September 26,
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.
(c) Commencement of operations was December 29, 1997.
See notes to financial statements.
125
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
----------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -------------------------------------------------
(UNAUDITED) 1997 1996
------------------------------------------ ------------------------ ------------------------
INVESTOR A INVESTOR B(D) INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ------------- ---------- ------------- ---------- -------------
<S> <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
-------- ------ -------- -------- -------- -------- --------
Investment Activities:
Net investment income
(loss)................ 0.027 0.011 0.028 0.048 0.049 0.050 0.051
Net realized and
unrealized gains
(losses) from
investments........... (0.002) -- (0.002) -- -- -- --
-------- ------ -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.025 0.011 0.026 0.048 0.049 0.050 0.051
-------- ------ -------- -------- -------- -------- --------
Dividends and
Distributions:
Net investment income.. (0.025) (0.011) (0.026) (0.048) (0.049) (0.050) (0.051)
Net realized gains..... -- -- -- -- -- -- --
-------- ------ -------- -------- -------- -------- --------
Total Distributions.... (0.025) (0.011) (0.026) (0.048) (0.049) (0.050) (0.051)
-------- ------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ====== ======== ======== ======== ======== ========
Total Return............ 2.53%(c) -- 2.58%(c) 4.91% 5.01% 5.07% 5.17%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $179,166 $ 135 $694,703 $195,046 $677,324 $147,478 $596,075
Ratio of expenses to
average net assets .... 0.38%(b) 0.84%(b) 0.33%(b) 0.73% 0.63% 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 2.50%(b) 2.04%(b) 2.55%(b) 4.80% 4.90% 4.93% 5.05%
Ratio of expenses to
average net assets*.... 0.39%(b) 0.85%(b) 0.34%(b) 0.90% 0.65% 0.91% 0.66%
Ratio of net investment
income to average net
assets*................ 2.49%(b) 2.03%(b) 2.54%(b) 4.63% 4.88% 4.76% 5.03%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from September 26, 1997 (commencement of offering of Investor B
Shares) through December 31, 1997.
See notes to financial statements.
126
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND, CONTINUED
--------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------
1995 1994 1993 (A)
------------------------ ------------------------ ------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Investment Activities:
Net investment income
(loss)................ 0.047 0.048 0.027 0.028 0.028 0.029
Net realized and
unrealized gains
(losses) from
investments........... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.047 0.048 0.027 0.028 0.028 0.029
-------- -------- -------- -------- -------- --------
Dividends and
Distributions:
Net investment income.. (0.047) (0.048) (0.027) (0.028) (0.028) (0.029)
Net realized gains..... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.047) (0.048) (0.027) (0.028) (0.028) (0.029)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 4.81% 4.91% 2.75% 2.85% 2.89% 2.91%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $108,565 $640,380 $105,611 $561,697 $129,433 $478,821
Ratio of expenses to
average net assets .... 0.75% 0.65% 0.74% 0.64% 0.66% 0.64%
Ratio of net investment
income to average net
assets................. 4.71% 4.83% 2.71% 2.84% 2.86% 2.88%
Ratio of expenses to
average net assets*.... 0.92% 0.67% 0.91% 0.66% 0.71% 0.66%
Ratio of net investment
income to average net
assets*................ 4.54% 4.81% 2.54% 2.82% 2.81% 2.86%
</TABLE>
See notes to financial statements.
127
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -------------------------------------------------
(UNAUDITED) 1997 1996
--------------------------- ------------------------ ------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment
income(loss).......... 0.109 0.111 0.047 0.048 0.049 0.050
Net realized and
unrealized gains
(losses) from
investments........... (0.085) (0.086) -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.024 0.025 0.047 0.048 0.049 0.050
-------- -------- -------- -------- -------- --------
Dividends and
Distributions:
Net investment income.. (0.024) (0.025) (0.047) (0.048) (0.049) (0.050)
Net realized gains..... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.024) (0.025) (0.047) (0.048) (0.049) (0.050)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 2.46%(c) 2.51%(c) 4.79% 4.89% 4.99% 5.10 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $193,943 $172,587 $212,082 $210,162 $186,944 $207,451
Ratio of expenses to
average net assets..... 0.38%(b) 0.33%(b) 0.74% 0.64% 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 2.43%(b) 2.49%(b) 4.69% 4.79% 4.88% 4.99%
Ratio of expenses to
average net assets*.... 0.39%(b) 0.34%(b) 0.91% 0.66% 0.91% 0.66%
Ratio of net investment
income to average net
assets*................ 2.42%(b) 2.48%(b) 4.52% 4.77% 4.71% 4.97%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
128
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND, CONTINUED
--------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------
1995 1994 1993 (A)
------------------------ ------------------------ ------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment
income(loss).......... 0.047 0.048 0.027 0.028 0.028 0.028
Net realized and
unrealized gains
(losses) from
investments........... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.047 0.048 0.027 0.028 0.028 0.028
-------- -------- -------- -------- -------- --------
Dividends and
Distributions:
Net investment income.. (0.047) (0.048) (0.027) (0.028) (0.028) (0.028)
Net realized gains..... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total Distributions.... (0.047) (0.048) (0.027) (0.028) (0.028) (0.028)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 4.76% 4.87% 2.69% 2.79% 2.84% 2.86%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $169,179 $227,565 $172,482 $192,612 $208,311 $223,855
Ratio of expenses to
average net assets..... 0.77% 0.67% 0.77% 0.67% 0.66% 0.64%
Ratio of net investment
income to average net
assets................. 4.62% 4.76% 2.64% 2.74% 2.79% 2.81%
Ratio of expenses to
average net assets*.... 0.94% 0.69% 0.94% 0.69% 0.72% 0.66%
Ratio of net investment
income to average net
assets*................ 4.45% 4.74% 2.47% 2.72% 2.73% 2.79%
</TABLE>
See notes to financial statements.
129
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TAX-FREE FUND
-------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -------------------------------------------------
(UNAUDITED) 1997 1996
--------------------------- ------------------------ ------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- ------- -------- ------- --------
Investment Activities:
Net investment income
(loss)................ 0.015 0.015 0.028 0.029 0.029 0.030
Net realized and
unrealized gains
(losses) from
investments........... -- -- -- -- -- --
------- -------- ------- -------- ------- --------
Total from Investment
Activities............ 0.015 0.015 0.028 0.029 0.029 0.030
------- -------- ------- -------- ------- --------
Dividends and
Distributions:
Net investment income.. (0.015) (0.015) (0.028) (0.029) (0.029) (0.030)
Net realized gains..... -- -- -- -- -- --
------- -------- ------- -------- ------- --------
Total Distributions.... (0.015) (0.015) (0.028) (0.029) (0.029) (0.030)
------- -------- ------- -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ======== ======= ========
Total Return............ 1.48%(c) 1.53%(c) 2.83% 2.94% 2.91% 3.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $61,871 $121,973 $47,466 $108,884 $41,713 $106,154
Ratio of expenses to
average net assets..... 0.39%(b) 0.34%(b) 0.78% 0.68% 0.76% 0.66%
Ratio of net investment
income to average net
assets................. 1.47%(b) 1.52%(b) 2.82% 2.90% 2.89% 2.97%
Ratio of expenses to
average net assets*.... 0.40%(b) 0.35%(b) 0.95% 0.70% 0.93% 0.68%
Ratio of net investment
income to average net
assets*................ 1.46%(b) 1.51%(b) 2.65% 2.88% 2.72% 2.95%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
130
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TAX-FREE FUND, CONTINUED
--------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------
1995 1994 1993 (A)
------------------------ ------------------------ ------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- ------- -------
Investment
Activities:
Net investment
income (loss)... 0.029 0.030 0.018 0.019 0.019 0.019
Net realized and
unrealized gains
(losses) from
investments..... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total from
Investment
Activities...... 0.029 0.030 0.018 0.019 0.019 0.019
------- ------- ------- ------- ------- -------
Dividends and
Distributions:
Net investment
income.......... (0.029) (0.030) (0.018) (0.019) (0.019) (0.019)
Net realized
gains........... -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total Distribu-
tions........... (0.029) (0.030) (0.018) (0.019) (0.019) (0.019)
------- ------- ------- ------- ------- -------
NET ASSET VALUE,
END OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return...... 2.90% 3.00% 1.81% 1.92% 2.07% 2.10%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000).. $45,102 $98,489 $48,256 $84,465 $54,886 $86,292
Ratio of expenses
to average net
assets........... 0.74% 0.64% 0.68% 0.58% 0.58% 0.55%
Ratio of net
investment income
to average net
assets........... 2.88% 2.97% 1.81% 1.90% 2.05% 2.08%
Ratio of expenses
to average net
assets*.......... 0.95% 0.70% 0.93% 0.68% 0.72% 0.65%
Ratio of net
investment income
to average net
assets*.......... 2.67% 2.91% 1.56% 1.80% 1.91% 1.98%
</TABLE>
See notes to financial statements.
131
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TREASURY FUND
--------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 --------------------------------------------------------------------------
(UNAUDITED) 1997 1996 1995
--------------------------- ------------------------ ------------------------ ------------------------
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 (loss).. 0.025 0.025 0.047 0.048 0.049 0.050 0.047 0.048
Net realized and
unrealized
gains (losses)
from
investments.... -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total from
Investment
Activities..... 0.025 0.025 0.047 0.048 0.049 0.050 0.047 0.048
-------- -------- -------- -------- -------- -------- -------- --------
Dividends and
Distributions:
Net investment
income......... (0.025) (0.025) (0.047) (0.048) (0.049) (0.050) (0.047) (0.048)
Net realized
gains.......... -- -- -- -- -- -- -- --
-------- -------- -------- -------- -------- -------- -------- --------
Total
Distributions.. (0.025) (0.025) (0.047) (0.048) (0.049) (0.050) 0.047) (0.048)
-------- -------- -------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ========
Total Return..... 2.51%(c) 2.57%(c) 4.82% 4.93% 5.04% 5.14% 4.81% 4.91%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $166,406 $314,231 $176,006 $324,377 $158,723 $223,416 $105,391 $192,232
Ratio of expenses
to average net
assets.......... 0.33%(b) 0.28%(b) 0.67% 0.57% 0.70% 0.60% 0.75% 0.64%
Ratio of net
investment
income to
average net
assets.......... 2.48%(b) 2.53%(b) 4.72% 4.83% 4.87% 4.98% 4.82% 4.95%
Ratio of expenses
to average net
assets*......... 0.38%(b) 0.33%(b) 0.92% 0.67% 0.95% 0.70% 1.04% 0.78%
Ratio of net
investment
income to
average net
assets*......... 2.43%(b) 2.48%(b) 4.47% 4.73% 4.62% 4.88% 4.52% 4.81%
<CAPTION>
DECEMBER 1, 1993 TO
JUNE 30, 1994 (A)
----------------------------
INVESTOR A INSTITUTIONAL
------------- --------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 1.000 $ 1.000
------------- --------------
Investment
Activities:
Net investment
income (loss).. 0.016 0.017
Net realized and
unrealized
gains (losses)
from
investments.... -- --
------------- --------------
Total from
Investment
Activities..... 0.016 0.017
------------- --------------
Dividends and
Distributions:
Net investment
income......... (0.016) (0.017)
Net realized
gains.......... -- --
------------- --------------
Total
Distributions.. (0.016) (0.017)
------------- --------------
NET ASSET VALUE,
END OF PERIOD... $ 1.000 $ 1.000
============= ==============
Total Return..... 1.66% 1.72%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $56,535 $76,035
Ratio of expenses
to average net
assets.......... 0.64%(b) 0.54%(b)
Ratio of net
investment
income to
average net
assets.......... 2.84%(b) 3.15%(b)
Ratio of expenses
to average net
assets*......... 0.99%(b) 0.74%(b)
Ratio of net
investment
income to
average net
assets*......... 2.49%(b) 2.95%(b)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
See notes to financial statements.
132
<PAGE>
[This page has been left blank intentionally.]
133
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
-------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -----------------------------------
(UNAUDITED) 1997
---------------------------------------------------------- -----------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C
---------- ---------- ---------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 27.55 $ 26.99 $ 27.05 $ 27.91 $ 34.17 $ 33.78 $ 33.83
-------- ------- ------- -------- -------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.15) (0.25) (0.25) (0.13) (0.29) (0.41) (0.34)
Net realized and
unrealized gains
(losses) from
investments............ (0.45) (0.41) (0.40) (0.42) (1.08) (1.13) (1.19)
-------- ------- ------- -------- -------- ------- -------
Total from Investment
Activities............. (0.60) (0.66) (0.65) (0.55) (1.37) (1.54) (1.53)
-------- ------- ------- -------- -------- ------- -------
Distributions
Net realized gains...... (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- -------
Total Distributions..... (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 25.65 $ 25.03 $ 25.10 $ 26.06 $ 27.55 $ 26.99 $ 27.05
======== ======= ======= ======== ======== ======= =======
Total Return (excludes
sales and redemption
charges)................ (2.17)%(c) 2.40 %(c) 2.39 %(c) 1.96 %(c) (4.53)% (5.13)% (5.08)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $197,032 $47,007 $15,417 $578,425 $188,645 $46,895 $14,962
Ratio of expenses to
average net assets...... 0.80 %(b) 1.18 %(b) 1.18 %(b) 0.67 %(b) 1.57 % 2.32 % 2.32 %
Ratio of net investment
loss to average net
assets.................. (0.57)%(b) (0.95)%(b) (0.95)%(b) (0.45)%(b) (1.19)% (1.94)% (1.94)%
Ratio of expenses to
average net assets*..... 0.80 %(b) 1.18 %(b) 1.18 %(b) 0.67 %(b) 1.57 % 2.32 % 2.32 %
Ratio of net investment
loss to average net
assets*................. (0.57)%(b) (0.95)%(b) (0.95)%(b) (0.45)%(b) (1.19)% (1.94)% (1.94)%
Portfolio turnover (g)... 29.33 % 29.33 % 29.33 % 29.33 % 48.45 % 48.45 % 48.45 %
Average commission rate
paid (h)................ $ 0.0805 $0.0805 $0.0805 $ 0.0805 $ 0.0788 $0.0788 $0.0788
<CAPTION>
INSTITUTIONAL
-------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 34.50
-------------
Investment Activities
Net investment income
(loss)................. (0.22)
Net realized and
unrealized gains
(losses) from
investments............ (1.12)
-------------
Total from Investment
Activities............. (1.34)
-------------
Distributions
Net realized gains...... (5.25)
-------------
Total Distributions..... (5.25)
-------------
NET ASSET VALUE, END OF
PERIOD.................. $ 27.91
=============
Total Return (excludes
sales and redemption
charges)................ (4.39)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $602,787
Ratio of expenses to
average net assets...... 1.32 %
Ratio of net investment
loss to average net
assets.................. (0.94)%
Ratio of expenses to
average net assets*..... 1.32 %
Ratio of net investment
loss to average net
assets*................. (0.94)%
Portfolio turnover (g)... 48.45 %
Average commission rate
paid (h)................ $ 0.0788
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
134
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND, CONTINUED
-------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- -----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD... $ 25.88 $ 25.79 $ 25.91 $ 26.08 $ 19.75 $19.83 $ 24.17 $ 19.83
-------- ------- ------- -------- ------- ------ ------- --------
Investment Activities
Net investment income
(loss)............... (0.23) (0.39) (0.20) (0.27) (0.18) (0.19) (0.05) (0.25 )
Net realized and
unrealized gains
(losses) from
investments.......... 12.17 12.03 11.77 12.34 8.46 8.30 3.94 8.65
-------- ------- ------- -------- ------- ------ ------- --------
Total from Investment
Activities........... 11.94 11.64 11.57 12.07 8.28 8.11 3.89 8.40
-------- ------- ------- -------- ------- ------ ------- --------
Distributions
Net realized gains.... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15 )
-------- ------- ------- -------- ------- ------ ------- --------
Total Distributions... (3.65) (3.65) (3.65) (3.65) (2.15) (2.15) (2.15) (2.15 )
-------- ------- ------- -------- ------- ------ ------- --------
NET ASSET VALUE, END OF
PERIOD................ $ 34.17 $ 33.78 $ 33.83 $ 34.50 $ 25.88 $25.79 $ 25.91 $ 26.08
======== ======= ======= ======== ======= ====== ======= ========
Total Return (excludes
sales and redemption
charges).............. 49.93 % 48.87 % 48.32 % 50.03 % 44.88 % 43.78 % 44.37 %(f) 45.32 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).......... $187,016 $30,310 $ 5,751 $528,866 $71,894 $9,990 $ 224 $354,825
Ratio of expenses to
average net assets.... 1.54 % 2.29 % 2.29 % 1.29 % 1.55 % 2.32 % 3.53 %(b) 1.33 %
Ratio of net investment
loss to average net
assets................ (1.18)% (1.93)% (1.94)% (0.93)% (1.27)% (2.03)% (3.06)%(b) 1.06 %
Ratio of expenses to
average net assets*... 1.54 % 2.29 % 2.29 % 1.29 % 1.58 % 2.55 % 3.53 %(b) 1.33 %
Ratio of net investment
loss to average net
assets*............... (1.18)% (1.93)% (1.94)% (0.93)% (1.30)% (2.26)% (3.06)%(b) (1.06)%
Portfolio turnover (g). 67.22 % 67.22 % 67.22 % 67.22 % 50.53 % 50.53 % 50.53 % 50.53 %
Average commission rate
paid (h).............. $ 0.0800 $0.0800 $0.0800 $ 0.0800 -- -- -- --
</TABLE>
See notes to financial statements.
135
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND, CONTINUED
--------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------
1994 1993 (A)
------------------------------------------ -------------------------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD... $ 20.31 $ 22.71 $ 20.31 $ 14.64 $ 14.64
------- ------- -------- ------- --------
Investment Activities
Net investment income
(loss)............... (0.15) (0.09) (0.28) (0.13) (0.14)
Net realized and
unrealized gains
(losses) from
investments........... 0.09 (2.79) 0.30 6.75 6.76
------- ------- -------- ------- --------
Total from Investment
Activities............ (0.06) (2.88) 0.02 6.62 6.62
------- ------- -------- ------- --------
Distributions
Net realized gains .... (0.50) -- (0.50) (0.95) (0.95)
------- ------- -------- ------- --------
Total Distributions.... (0.50) -- (0.50) (0.95) (0.95)
------- ------- -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 19.75 $ 19.83 $ 19.83 $ 20.31 $ 20.31
======= ======= ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... (0.55)% (12.68)% (0.15)% 45.77 % 45.77 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $42,791 $ 2,130 $271,425 $27,976 $291,462
Ratio of expenses to
average net assets..... 1.40 % 2.35 %(b) 1.30 % 1.29 % 1.26 %
Ratio of net investment
income (loss) to
average net assets..... (1.24)% (2.19)%(b) (1.14)% (1.02)% (0.98)%
Ratio of expenses to
average net assets*.... 1.55 % 2.61 %(b) 1.30 % 1.36 % 1.28 %
Ratio of net investment
loss to average net
assets*................ (1.39)% (2.45)%(b) (1.14)% (1.09)% (1.01)%
Portfolio turnover (g).. 72.64 % 72.64 % 72.64 % 71.21 % 71.21 %
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
136
<PAGE>
[This page has been left blank intentionally.]
137
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID CAPITALIZATION FUND
-------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -----------------------------------
(UNAUDITED) 1997
---------------------------------------------------------- -----------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C
---------- ---------- ---------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 15.72 $ 15.12 $ 15.24 $ 15.82 $ 20.71 $ 20.28 $ 20.36
------- ------- ------- -------- ------- ------- --------
Investment Activities
Net investment income
(loss).............. (0.07) (0.12) (0.12) (0.06) (0.16) (0.24) (0.21)
Net realized and
unrealized gains
(losses) from
investments......... 1.44 1.39 1.41 1.44 1.30 1.21 1.22
------- ------- ------- -------- ------- ------- --------
Total from Investment
Activities.......... 1.37 1.27 1.29 1.38 1.14 0.97 1.01
------- ------- ------- -------- ------- ------- --------
Distributions
Net realized gains... (3.11) (3.11) (3.11) (3.11) (6.13) (6.13) (6.13)
------- ------- ------- -------- ------- ------- --------
Total Distributions.. (3.11) (3.11) (3.11) (3.11) (6.13) (6.13) (6.13)
------- ------- ------- -------- ------- ------- --------
NET ASSET VALUE, END
OF PERIOD............ $ 13.98 $ 13.28 $ 13.42 $ 14.09 $ 15.72 $ 15.12 $ 15.24
======= ======= ======= ======== ======= ======= ========
Total Return (excludes
sales and redemption
charges)............. 9.04 %(c) 8.74 %(c) 8.81 %(c) 9.01 %(c) 5.78 % 4.94 % 5.17 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $91,367 $23,585 $ 2,172 $511,299 $80,634 $21,994 $ 2,018
Ratio of expenses to
average net assets... 0.78 %(b) 1.16 %(b) 1.16 %(b) 0.66 %(b) 1.56 % 2.31 % 2.31 %
Ratio of net
investment loss to
average net assets... (0.51)%(b) (0.89)%(b) (0.89)%(b) (0.38)%(b) (1.05)% (1.80)% (1.80)%
Ratio of expenses to
average net assets*.. 0.78 %(b) 1.16 %(b) 1.16 %(b) 0.66 %(b) 1.56 % 2.31 % 2.31 %
Ratio of net
investment loss to
average net assets*.. (0.51)%(b) (0.89)%(b) (0.89)%(b) (0.38)%(b) (1.05)% (1.80)% (1.80)%
Portfolio turnover
(g).................. 31.74 % 31.74 % 31.74 % 31.74 % 38.47 % 38.47 % 38.47 %
Average commission
rate paid (h)........ $0.0800 $0.0800 $0.0800 $ 0.0800 $0.0794 $0.0794 $ 0.0794
<CAPTION>
INSTITUTIONAL
-------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 20.83
------------- ---
Investment Activities
Net investment income
(loss).............. (0.13)
Net realized and
unrealized gains
(losses) from
investments......... 1.25
-------------
Total from Investment
Activities.......... 1.12
-------------
Distributions
Net realized gains... (6.13)
-------------
Total Distributions.. (6.13)
-------------
NET ASSET VALUE, END
OF PERIOD............ $ 15.82
=============
Total Return (excludes
sales and redemption
charges)............. 5.58 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $544,082
Ratio of expenses to
average net assets... 1.31 %
Ratio of net
investment loss to
average net assets... (0.80)%
Ratio of expenses to
average net assets*.. 1.31 %
Ratio of net
investment loss to
average net assets*.. (0.80)%
Portfolio turnover
(g).................. 38.47 %
Average commission
rate paid (h)........ $ 0.0794
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
138
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID CAPITALIZATION FUND, CONTINUED
----------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------------------------------------------------
1996 1995
------------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 16.56 $ 16.35 $ 16.40 $ 16.62 $ 14.69 $14.63 $16.29 $ 14.70
-------- -------- -------- -------- ------- ------ ------ -------- ---
Investment
Activities
Net investment
income (loss).. (0.16) (0.23) (0.17) (0.16) (0.12) (0.11) (0.02) (0.08)
Net realized and
unrealized
gains (losses)
from
investments.... 4.97 4.82 4.79 5.03 3.46 3.30 1.60 3.47
-------- -------- -------- -------- ------- ------ ------ --------
Total from
Investment
Activities..... 4.81 4.59 4.62 4.87 3.34 3.19 1.58 3.39
-------- -------- -------- -------- ------- ------ ------ --------
Distributions
Net realized
gains.......... (0.66) (0.66) (0.66) (0.66) (0.48) (0.48) -- (0.49)
In excess of net
realized gains. -- -- -- -- (0.99) (0.99) (1.47) (0.98)
-------- -------- -------- -------- ------- ------ ------ --------
Total
Distributions.. (0.66) (0.66) (0.66) (0.66) (1.47) (1.47) (1.47) (1.47)
-------- -------- -------- -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 20.71 $ 20.28 $ 20.36 $ 20.83 $ 16.56 $16.35 $16.40 $ 16.62
======== ======== ======== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)........ 29.57% 28.59% 28.69% 29.83% 24.85% 23.88% 23.56%(f) 25.20%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $ 66,260 $ 15,840 $ 1,088 $650,495 $43,803 $6,073 $ 153 $683,320
Ratio of expenses
to average net
assets.......... 1.54 % 2.29 % 2.29 % 1.29 % 1.51 % 2.29 % 2.27 %(b) 1.29 %
Ratio of net
investment loss
to average net
assets.......... (0.94)% (1.70)% (1.73)% (0.68)% (0.87)% (1.61)% (1.43)%(b) (0.64)%
Ratio of expenses
to average net
assets*......... 1.54 % 2.29 % 2.29 % 1.29 % 1.54 % 2.54 % 2.53 %(b) 1.29 %
Ratio of net
investment loss
to average net
assets*......... (0.94)% (1.71)% (1.74)% (0.68)% (0.90)% (1.87)% (1.70)%(b) (0.65)%
Portfolio
turnover (g).... 49.27 % 49.27 % 49.27 % 49.27 % 46.39 % 46.39 % 46.39 % 46.39 %
Average
commission rate
paid (h)........ $ 0.0796 $ 0.0796 $ 0.0796 $ 0.0796 -- -- -- --
<CAPTION>
<S> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD..........
Investment
Activities
Net investment
income (loss)..
Net realized and
unrealized
gains (losses)
from
investments....
Total from
Investment
Activities.....
Distributions
Net realized
gains..........
In excess of net
realized gains.
Total
Distributions..
NET ASSET VALUE,
END OF PERIOD...
Total Return
(excludes sales
and redemption
charges)........
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000).
Ratio of expenses
to average net
assets..........
Ratio of net
investment loss
to average net
assets..........
Ratio of expenses
to average net
assets*.........
Ratio of net
investment loss
to average net
assets*.........
Portfolio
turnover (g)....
Average
commission rate
paid (h)........
</TABLE>
See notes to financial statements.
139
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID CAPITALIZATION FUND, CONTINUED
--------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------
1994 1993 (A)
------------------------------------------ -------------------------
INVESTOR A INVESTOR B (D) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 15.11 $ 16.66 $ 15.10 $ 12.80 $ 12.80
------- ------- -------- ------- --------
Investment Activities
Net investment income
(loss)................ (0.10) (0.05) (0.11) (0.01) (0.01)
Net realized and
unrealized gains
(losses) from
investments........... (0.28) (1.98) (0.25) 2.74 2.73
------- ------- -------- ------- --------
Total from Investment
Activities............ (0.38) (2.03) (0.36) 2.73 2.72
------- ------- -------- ------- --------
Distributions
Net investment income.. -- -- -- (0.02) (0.02)
Net realized gains..... (0.04) -- (0.04) (0.40) (0.40)
In excess of net
realized gains........ -- -- -- -- --
------- ------- -------- ------- --------
Total Distributions.... (0.04) -- (0.04) (0.42) (0.42)
------- ------- -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 14.69 $ 14.63 $ 14.70 $ 15.11 $ 15.10
======= ======= ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... (2.57)% (12.18)% (2.44)% 21.42% 21.34%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $36,108 $ 1,616 $533,260 $26,460 $595,127
Ratio of expenses to
average net assets..... 1.38 % 2.30 %(b) 1.28 % 1.28 % 1.24 %
Ratio of net investment
loss to average net
assets................. (0.75)% (1.57)%(b) (0.65)% (0.12)% (0.09)%
Ratio of expenses to
average net assets*.... 1.53 % 2.56 %(b) 1.28 % 1.35 % 1.27 %
Ratio of net investment
loss to average net
assets*................ (0.90)% (1.83)%(b) (0.65)% (0.19)% (0.11)%
Portfolio turnover (g).. 70.87 % 70.87 % 70.87 % 66.48 % 66.48 %
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional Shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
140
<PAGE>
[This page has been left blank intentionally.]
141
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LARGE CAPITALIZATION FUND
-------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 -----------------------------------
(UNAUDITED) 1997
---------------------------------------------------------- -----------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C
---------- ---------- ---------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 14.44 $ 14.34 $ 14.28 $ 14.48 $ 11.23 $ 11.22 $ 11.16
------- ------- ------- -------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.02) (0.06) (0.04) (0.01) -- (0.05) (0.06)
Net realized and
unrealized gains
(losses) from
investments............ 1.25 1.22 1.16 1.26 3.30 3.25 3.27
------- ------- ------- -------- ------- ------- -------
Total from Investment
Activities............. 1.23 1.16 1.12 1.25 3.30 3.20 3.21
------- ------- ------- -------- ------- ------- -------
Distributions
Net investment income... -- -- -- -- (0.01) -- (0.01)
Net realized gains...... (1.70) (1.70) (1.70) (1.70) (0.08) (0.08) (0.08)
------- ------- ------- -------- ------- ------- -------
Total Distributions..... (1.70) (1.70) (1.70) (1.70) (0.09) (0.08) (0.09)
------- ------- ------- -------- ------- ------- -------
NET ASSET VALUE, END OF
PERIOD.................. $ 13.97 $ 13.80 $ 13.70 $ 14.03 $ 14.44 $ 14.34 $ 14.28
======= ======= ======= ======== ======= ======= =======
Total Return (excludes
sales and redemption
charges)................ 8.68%(c) 8.26%(c) 8.00%(c) 8.80%(c) 29.52% 28.62% 28.82%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $18,000 $ 6,695 $ 122 $315,532 $12,260 $ 4,130 $ 42
Ratio of expenses to
average net assets...... 0.69 %(b) 1.06 %(b) 1.06 %(b) 0.56 %(b) 1.37 % 2.12 % 2.12 %
Ratio of net investment
income (loss) to average
net assets.............. (0.17)%(b) (0.55)%(b) (0.54)%(b) (0.05)%(b) (0.14)% (0.88)% (0.91)%
Ratio of expenses to
average net assets*..... 0.69 %(b) 1.06 %(b) 1.06 %(b) 0.56 %(b) 1.37 % 2.12 % 2.12 %
Ratio of net investment
income (loss) to average
net assets*............. (0.17)%(b) (0.55)%(b) (0.54)%(b) (0.05)%(b) (0.14)% (0.88)% (0.91)%
Portfolio turnover (d)... 19.97 % 19.97 % 19.97 % 19.97 % 48.44 % 48.44 % 48.44 %
Average commission rate
paid (e)................ $0.0800 $0.0800 $0.0800 $ 0.0800 $0.0932 $0.0932 $0.0932
<CAPTION>
INSTITUTIONAL
-------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 11.25
-------------
Investment Activities
Net investment income
(loss)................. 0.03
Net realized and
unrealized gains
(losses) from
investments............ 3.31
-------------
Total from Investment
Activities............. 3.34
-------------
Distributions
Net investment income... (0.03)
Net realized gains...... (0.08)
-------------
Total Distributions..... (0.11)
-------------
NET ASSET VALUE, END OF
PERIOD.................. $ 14.48
=============
Total Return (excludes
sales and redemption
charges)................ 29.81%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $338,388
Ratio of expenses to
average net assets...... 1.12 %
Ratio of net investment
income (loss) to average
net assets.............. 0.19 %
Ratio of expenses to
average net assets*..... 1.12 %
Ratio of net investment
income (loss) to average
net assets*............. 0.19 %
Portfolio turnover (d)... 48.44 %
Average commission rate
paid (e)................ $ 0.0932
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Annualized.
(c) Not annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(e) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
142
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LARGE CAPITALIZATION FUND, CONTINUED
----------------------------------------------------------
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
(losses) from
investments............ 1.23 1.23 1.17 1.25
------- ------- ------- --------
Total from Investment
Activities............. 1.26 1.24 1.17 1.28
------- ------- ------- --------
Distributions
Net investment income... (0.03) (0.02) -- (0.03)
In excess of net
investment income...... -- -- (0.01) --
------- ------- ------- --------
Total Distributions..... (0.03) (0.02) (0.01) (0.03)
------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 11.23 $ 11.22 $ 11.16 $ 11.25
======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)................ 8.99% 8.77% 8.14% 12.86%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $ 1,657 $ 832 $ 2 $274,150
Ratio of expenses to
average net assets...... 1.40 %(c) 1.78 %(c) 2.24 %(c) 2.19%(c)
Ratio of net investment
income (loss) to average
net assets.............. 0.31 %(c) (0.32)%(c) (0.45)%(c) 1.26%(c)
Ratio of expenses to
average net assets*..... 2.62 %(c) 4.07 %(c) 4.25 %(c) 2.26%(c)
Ratio of net investment
income (loss) to average
net assets*............. (0.91)%(c) (2.61)%(c) (2.46)%(c) 1.19%(c)
Portfolio turnover (d)... 0.86 % 0.86 % 0.86 % 0.86%
Average commission rate
paid (e)................ $0.0800 $0.0800 $0.0800 $ 0.0800
</TABLE>
See notes to financial statements.
143
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
----------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1997
(UNAUDITED)
----------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 16.25 $ 15.85 $ 16.21 $ 16.41
------- ------- ------- --------
Investment Activities
Net investment income
(loss)................. (0.06) (0.11) (0.11) (0.04)
Net realized and
unrealized gains
(losses) from
investments and foreign
currencies............. (1.26) (1.23) (1.26) (1.29)
------- ------- ------- --------
Total from Investment
Activities............. (1.32) (1.34) (1.37) (1.33)
------- ------- ------- --------
Distributions
Net realized gains...... (0.51) (0.51) (0.51) (0.51)
------- ------- ------- --------
Total Distributions..... (0.51) (0.51) (0.51) (0.51)
------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 14.42 $ 14.00 $ 14.33 $ 14.57
======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)................ (8.14)%(c) (8.47)%(c) (8.54)%(c) (8.12)%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $44,004 $12,461 $ 934 $389,580
Ratio of expenses to
average net assets...... 0.92 %(b) 1.30 %(b) 1.30 %(b) 0.79 %(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.77)%(b) (1.15)%(b) (1.16)%(b) (0.64)%(b)
Ratio of expenses to
average net assets*..... 0.92 %(b) 1.30 %(b) 1.30 %(b) 0.79 %(b)
Ratio of net investment
income (loss) to average
net assets*............. (0.77)%(b) (1.15)%(b) (1.16)%(b) (0.64)%(b)
Portfolio turnover (h)... 13.43 % 13.43 % 13.43 % 13.43 %
Average commission rate
paid (i)................ $0.0952 $0.0952 $0.0952 $ 0.0952
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(i) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
144
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND, CONTINUED
---------------------------------------------------------------------------------------------------
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
(losses) 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 (h).. 45.18 % 45.18 % 45.18 % 45.18 % 54.47 % 54.47 % 54.47 % 54.47 %
Average commission rate
paid (i)............... $0.0329 $0.0329 $0.0329 $ 0.0329 $0.0321 $0.0321 $0.0321 $ 0.0321
</TABLE>
See notes to financial statements.
145
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND, CONTINUED
----------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
----------------------------------------------------------------------------------------------
1995 1994
---------------------------------------------------- -----------------------------------------
INVESTOR A INVESTOR B INVESTOR C(E) INSTITUTIONAL INVESTOR A INVESTOR B(D) INSTITUTIONAL
---------- ---------- ------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 13.18 $13.21 $12.97 $ 13.24 $ 11.50 $14.12 $ 11.54
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.03 (0.04) 0.03 0.04 (0.02) (0.01) (0.01)
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... (0.36) (0.40) 0.04 (0.33) 1.74 (0.90) 1.75
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... (0.33) (0.44) 0.07 (0.29) 1.72 (0.91) 1.74
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... -- -- -- -- (0.02) -- (0.02)
Net realized
gains.......... (0.62) (0.62) (0.62) (0.62) (0.02) -- (0.02)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.62) (0.62) (0.62) (0.62) (0.04) -- (0.04)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 12.23 $12.15 $12.42 $ 12.33 $ 13.18 $13.21 $ 13.24
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ (2.19)% (3.03)% (1.15)%(g) (1.86)% 14.99% (6.44)% 15.12%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $34,228 $5,469 $ 82 $264,759 $36,297 $2,680 $261,798
Ratio of expenses
to average net
assets.......... 1.78 % 2.57 % 2.32 %(b) 1.56 % 1.63 % 2.56 %(b) 1.52 %
Ratio of net
investment
income (loss) to
average net
assets.......... 0.08 % (0.49)% 1.74 %(b) 0.31 % (0.29)% (0.22)%(b) (0.30)%
Ratio of expenses
to average net
assets*......... 1.91 % 2.92 % 3.27 %(b) 1.59 % 1.84 % 2.61 %(b) 1.57 %
Ratio of net
investment
income (loss) to
average net
assets*......... (0.06)% (0.84)% 0.79 %(b) 0.28 % (0.49)% (0.27)%(b) (0.35)%
Portfolio
turnover (h).... 104.39 % 104.39 % 104.39 % 104.39 % 37.23 % 37.23 % 37.23 %
<CAPTION>
INTERNATIONAL DISCOVERY
FUND, CONTINUED
------------------------------
YEAR ENDED JUNE 30,
------------------------------
DECEMBER 29, 1992 TO
JUNE 30 1993(A)(F)
------------------------------
INVESTOR A INSTITUTIONAL
------------- ----------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $10.00 $ 10.00
------------- ----------------
Investment
Activities
Net investment
income (loss).. 0.03 0.04
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.48 1.51
------------- ----------------
Total from
Investment
Activities..... 1.51 1.55
------------- ----------------
Distributions
Net investment
income......... (0.01) (0.01)
Net realized
gains.......... -- --
------------- ----------------
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 (h).... 12.47 % 12.47 %
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional Shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
146
<PAGE>
[This page has been left blank intentionally.]
147
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
-----------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1997
(UNAUDITED)
-----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 9.49 $ 9.49 $ 9.29 $ 9.49
------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. 0.26 0.22 0.24 0.27
Net realized and
unrealized gains
(losses) from
investments............ 0.02 0.02 (0.01) 0.02
------- ------ ------ --------
Total from Investment
Activities............. 0.28 0.24 0.23 0.29
------- ------ ------ --------
Distributions
Net investment income... (0.27) (0.23) (0.24) (0.28)
------- ------ ------ --------
Total Distributions..... (0.27) (0.23) (0.24) (0.28)
------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.50 $ 9.50 $ 9.28 $ 9.50
======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)................ 2.99%(c) 2.56%(c) 2.50%(c) 3.02%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $35,560 $1,382 $2,064 $150,693
Ratio of expenses to
average net assets...... 0.55%(b) 0.92%(b) 0.92%(b) 0.42%(b)
Ratio of net investment
income to average net
assets.................. 2.78%(b) 2.37%(b) 2.40%(b) 2.87%(b)
Ratio of expenses to
average net assets*..... 0.67%(b) 1.04%(b) 1.04%(b) 0.54%(b)
Ratio of net investment
income to average net
assets*................. 2.66%(b) 2.25%(b) 2.28%(b) 2.75%(b)
Portfolio turnover (g)... 175.09% 175.09% 175.09% 175.09%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
148
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND, CONTINUED
---------------------------------------------------------------------------------------------
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
(loss)................ 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 (g).. 607.84% 607.84% 607.84% 607.84% 618.60% 618.60% 618.60% 618.60%
</TABLE>
See notes to financial statements.
149
<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 (E) INSTITUTIONAL INVESTOR A INVESTOR B (D) INSTITUTIONAL
---------- ---------- -------------- ------------- ---------- -------------- -------------
<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 (loss).. 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%(f) 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 (g).... 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 (loss).. 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 (g).... 123.10% 123.10%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
150
<PAGE>
[This page has been left blank intentionally.]
151
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
-----------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31,1997
(UNAUDITED)
-----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 9.73 $ 9.71 $ 9.54 $ 9.73
------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. 0.28 0.23 0.23 0.28
Net realized and
unrealized gains
(losses) from
investments............ 0.14 0.15 0.15 0.15
------- ------ ------ --------
Total from Investment
Activities............. 0.42 0.38 0.38 0.43
------- ------ ------ --------
Distributions
Net investment income... (0.30) (0.26) (0.26) (0.31)
------- ------ ------ --------
Total Distributions..... (0.30) (0.26) (0.26) (0.31)
------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.85 $ 9.83 $ 9.66 $ 9.85
======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)................ 4.34%(c) 3.93%(c) 4.01%(c) 4.49%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $16,319 $2,031 $ 228 $173,574
Ratio of expenses to
average net assets...... 0.62%(b) 1.00%(b) 1.00%(b) 0.49%(b)
Ratio of net investment
income to average net
assets.................. 2.75%(b) 2.37%(b) 2.37%(b) 2.88%(b)
Ratio of expenses to
average net assets*..... 0.66%(b) 1.04%(b) 1.04%(b) 0.54%(b)
Ratio of net investment
income to average net
assets*................. 2.71%(b) 2.33%(b) 2.33%(b) 2.83%(b)
Portfolio turnover (g)... 625.92% 625.92% 625.92% 625.92%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
152
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND, CONTINUED
---------------------------------------------------------------------------------------------
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
(loss)................ 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 (g).. 1,516.78% 1,516.78% 1,516.78% 1,516.78% 916.39% 916.39% 916.39% 916.39%
</TABLE>
See notes to financial statements.
153
<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 (E) INSTITUTIONAL INVESTOR A INVESTOR B (D) 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 (loss).. 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%(f) 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 (g).... 549.93% 549.13% 549.13% 549.13% 546.06% 546.06% 546.06%
<CAPTION>
INTERMEDIATE GOVERNMENT
OBLIGATIONS FUND, CONTINUED
------------------------
YEAR ENDED JUNE 30,
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.42 $ 10.42
---------- -------------
Investment
Activities
Net investment
income (loss).. 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 (g).... 225.90% 225.90%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
154
<PAGE>
[This page has been left blank intentionally.]
155
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND
------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1997
(UNAUDITED)
------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 9.15 $ 9.13 $ 9.10 $ 9.15
------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. 0.34 0.31 0.32 0.35
Net realized and
unrealized (losses)
from investments....... 0.11 0.10 0.09 0.11
------- ------- ------ --------
Total from Investment
Activities............. 0.45 0.41 0.41 0.46
------- ------- ------ --------
Distributions
Net investment income... (0.34) (0.31) (0.31) (0.35)
------- ------- ------ --------
Total Distributions..... (0.34) (0.31) (0.31) (0.35)
------- ------- ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.26 $ 9.23 $ 9.20 $ 9.26
======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ 5.04%(c) 4.56%(c) 4.57%(c) 5.17%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $60,009 $25,467 $ 153 $158,821
Ratio of expenses to
average net assets...... 0.51%(b) 0.89%(b) 0.89%(b) 0.38%(b)
Ratio of net investment
income to average net
assets.................. 3.70%(b) 3.32%(b) 3.30%(b) 3.82%(b)
Ratio of expenses to
average net assets*..... 0.68%(b) 1.06%(b) 1.06%(b) 0.55%(b)
Ratio of net investment
income to average net
assets*................. 3.53%(b) 3.15%(b) 3.13%(b) 3.65%(b)
Portfolio turnover (h)... 260.09% 260.09% 260.09% 260.09%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
156
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND, CONTINUED
---------------------------------------------------------------------------------------------
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
(loss)................ 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 (h).. 499.53% 499.53% 499.53% 499.53% 348.01% 348.01% 348.01% 348.01%
</TABLE>
See notes to financial statements.
157
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND, CONTINUED
------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------------------------------
1995 1994
-------------------------------------------------- ---------------------------------------
INVESTOR A INVESTOR B INVESTOR C(E) INSTITUTIONAL INVESTOR A INVESTOR B(D) 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
(loss)................ 0.75 0.68 0.28 0.76 0.74 0.28 0.74
Net realized and
unrealized gains
(losses) from
investments........... -- 0.01 0.24 0.01 (0.64) (0.50) (0.63)
------- ------ ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.75 0.69 0.52 0.77 0.10 (0.22) 0.11
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.66) (0.61) (0.25) (0.68) (0.72) (0.27) (0.73)
Tax return of capital.. (0.08) (0.07) (0.03) (0.08) (0.01) (0.01) (0.01)
------- ------ ------ -------- ------- ------ --------
Total Distributions.... (0.74) (0.68) (0.28) (0.76) (0.73) (0.28) (0.74)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.42 $ 9.39 $ 9.36 $ 9.42 $ 9.41 $ 9.38 $ 9.41
======= ====== ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 8.46% 7.71% 5.26%(g) 8.70% 0.94% (2.26)% 1.04%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $50,931 $8,478 $ 29 $110,190 $54,027 $2,787 $101,506
Ratio of expenses to
average net assets..... 1.04% 1.83% 2.88%(b) 0.83% 0.82% 1.77%(b) 0.72%
Ratio of net investment
income to average net
assets................. 8.03% 7.28% 11.54%(b) 8.25% 7.42% 6.72%(b) 7.51%
Ratio of expenses to
average net assets*.... 1.44% 2.44% 2.88%(b) 1.19% 1.36% 2.42%(b) 1.11%
Ratio of net investment
income to average net
assets*................ 7.63% 6.67% 11.54%(b) 7.89% 6.87% 6.08%(b) 7.12%
Portfolio turnover (h).. 114.71% 114.71% 114.71% 114.71% 102.24% 102.24% 102.24%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Period from commencement of operations.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
158
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME
FUND, CONTINUED
---------------------------
NOVEMBER 12, 1992 TO
JUNE 30, 1993 (A)(F)
---------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD............... $ 10.00 $ 10.00
------- -------
Investment Activities
Net investment income (loss)...................... 0.48 0.48
Net realized and unrealized gains (losses) 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 (h)............................. 135.06% 135.06%
</TABLE>
See notes to financial statements.
159
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND
-----------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1997
(UNAUDITED)
-----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $9.68 $9.69 $9.65 $9.73
------- ------ ------ -------
Investment Activities
Net investment income
(loss)................. 0.29 0.25 0.25 0.30
Net realized and
unrealized gains
(losses) from
investments............ 0.28 0.29 0.28 0.28
------- ------ ------ -------
Total from Investment
Activities............. 0.57 0.54 0.53 0.58
------- ------ ------ -------
Distributions
Net investment income... (0.32) (0.28) (0.28) (0.33)
------- ------ ------ -------
Total Distributions..... (0.32) (0.28) (0.28) (0.33)
------- ------ ------ -------
NET ASSET VALUE, END OF
PERIOD.................. $ 9.93 $ 9.95 $ 9.90 $ 9.98
======= ====== ====== =======
Total Return (excludes
sales and redemption
charges)................ 5.93%(c) 5.60%(c) 5.51%(c) 6.04%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $19,343 $6,534 $ 583 492,573
Ratio of expenses to
average net assets...... 0.60%(b) 0.98%(b) 0.98%(b) 0.48%(b)
Ratio of net investment
income to average net
assets.................. 2.90%(b) 2.53%(b) 2.52%(b) 3.03%(b)
Ratio of expenses to
average net assets*..... 0.65%(b) 1.03%(b) 1.03%(b) 0.53%(b)
Ratio of net investment
income to average net
assets*................. 2.85%(b) 2.48%(b) 2.47%(b) 2.98%(b)
Portfolio turnover (g)... 433.00% 433.00% 433.00% 433.00%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
160
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND, CONTINUED
---------------------------------------------------------------------------------------------
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
(loss)................ 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 (g).. 827.00% 827.00% 827.00% 827.00% 1,189.27% 1,189.27% 1,189.27% 1,189.27%
</TABLE>
See notes to financial statements.
161
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND, CONTINUED
--------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------------------
1995 1994
--------------------------------------------------- ----------------------------------------
INVESTOR A INVESTOR B INVESTOR C (E) INSTITUTIONAL INVESTOR A INVESTOR B (D) INSTITUTIONAL
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.30 $ 9.26 $ 9.02 $ 9.29 $ 10.54 $ 9.95 $ 10.53
-------- -------- -------- -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 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%(f) 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 (g).... 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 (loss).. 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 (g).... 443.98% 443.98%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
162
<PAGE>
[This page has been left blank intentionally.]
163
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND
----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 ---------------------------------------------------------
(UNAUDITED) 1997 1996
---------------------------------------- ----------------------------------- ---------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B
---------- ---------- ------------- ---------- ---------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.53 $10.51 $ 10.54 $10.43 $10.39 $ 10.43 $10.39 $10.36
------- ------ -------- ------ ------ -------- ------ ------
Investment
Activities
Net investment
income (loss).. 0.20 0.16 0.22 0.44 0.36 0.46 0.41 0.33
Net realized and
unrealized
gains (losses)
from
investments.... 0.24 0.24 0.23 0.12 0.13 0.14 0.03 0.03
------- ------ -------- ------ ------ -------- ------ ------
Total from
Investment
Activities..... 0.44 0.40 0.45 0.56 0.49 0.60 0.44 0.36
------- ------ -------- ------ ------ -------- ------ ------
Distributions
Net investment
income......... (0.23) (0.19) (0.25) (0.41) (0.32) (0.44) (0.40) (0.33)
Net realized
gains.......... (0.18) (0.18) (0.18) (0.05) (0.05) (0.05) -- --
------- ------ -------- ------ ------ -------- ------ ------
Total
Distributions.. (0.41) (0.37) (0.43) (0.46) (0.37) (0.49) (0.40) (0.33)
------- ------ -------- ------ ------ -------- ------ ------
NET ASSET VALUE,
END OF PERIOD... $ 10.56 $10.54 $ 10.56 $10.53 $10.51 $ 10.54 $10.43 $10.39
======= ====== ======== ====== ====== ======== ====== ======
Total Return
(excludes sales
and redemption
charges)........ 4.29%(c) 3.87%(c) 4.33%(c) 5.47% 4.81% 5.89% 4.29% 3.48%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $10,053 $ 771 $129,255 $9,601 $ 993 $134,579 $7,835 $ 735
Ratio of expenses
to average net
assets.......... 0.52%(b) 0.90%(b) 0.40%(b) 1.06% 1.81% 0.81% 1.05% 1.80%
Ratio of net
investment
income to
average net
assets.......... 1.85%(b) 1.47%(b) 1.98%(b) 4.19% 3.43% 4.41% 3.85% 3.11%
Ratio of expenses
to average net
assets*......... 0.67%(b) 1.05%(b) 0.55%(b) 1.35% 2.10% 1.10% 1.34% 2.09%
Ratio of net
investment
income to
average net
assets*......... 1.70%(b) 1.32%(b) 1.83%(b) 3.90% 3.14% 4.12% 3.56% 2.82%
Portfolio
turnover (h).... 57.59% 57.59% 57.59% 48.83% 48.83% 48.83% 47.46% 47.46%
<CAPTION>
MUNICIPAL BOND FUND
-------------------
YEAR ENDED JUNE 30,
-------------------
1996
-------------------
INSTITUTIONAL
-------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.39
-------------
Investment
Activities
Net investment
income (loss).. 0.43
Net realized and
unrealized
gains (losses)
from
investments.... 0.04
-------------
Total from
Investment
Activities..... 0.47
-------------
Distributions
Net investment
income......... (0.43)
Net realized
gains.......... --
-------------
Total
Distributions.. (0.43)
-------------
NET ASSET VALUE,
END OF PERIOD... $ 10.43
=============
Total Return
(excludes sales
and redemption
charges)........ 4.55%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $132,527
Ratio of expenses
to average net
assets.......... 0.80%
Ratio of net
investment
income to
average net
assets.......... 4.10%
Ratio of expenses
to average net
assets*......... 1.09%
Ratio of net
investment
income to
average net
assets*......... 3.81%
Portfolio
turnover (h).... 47.46%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) There was only one share outstanding for the Investor C Shares at June 30,
1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
164
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
---------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------
1995 1994
----------------------------------------------------- ---------------------------------------
INVESTOR A INVESTOR B INVESTOR C (E)(G) INSTITUTIONAL INVESTOR A INVESTOR B (D) INSTITUTIONAL
---------- ---------- ----------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.29 $10.26 $ 9.88 $ 10.29 $ 10.92 $10.76 $ 10.92
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.41 0.33 (0.03) 0.46 0.40 0.13 0.41
Net realized and
unrealized
gains (losses)
from
investments.... 0.27 0.27 0.65 0.27 (0.31) (0.50) (0.31)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.68 0.60 0.62 0.73 0.09 (0.37) 0.10
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.41) (0.33) (0.14) (0.46) (0.39) (0.13) (0.40)
Net realized
gains.......... -- -- -- -- (0.21) -- (0.21)
In excess of net
realized gains
............... (0.17) (0.17) (0.16) (0.17) (0.12) -- (0.12)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.58) (0.50) (0.30) (0.63) (0.72) (0.13) (0.73)
------- ------ ------ -------- ------- ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 10.39 $10.36 $10.20 $ 10.39 $ 10.29 $10.26 $ 10.29
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 7.02% 6.17% 3.47%(f) 7.25% 0.71% (3.41)% 0.81%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).... $11,378 $ 447 -- $134,784 $13,123 $ 359 $147,687
Ratio of expenses
to average net
assets.......... 1.02% 1.80% 0.71%(b) 0.80% 0.87% 1.80%(b) 0.77%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.00% 3.22% (0.54)%(b) 4.21% 3.72% 2.88%(b) 3.83%
Ratio of expenses
to average net
assets*......... 1.33% 2.33% 0.71%(b) 1.08% 1.32% 2.37%(b) 1.06%
Ratio of net
investment
income (loss) to
average net
assets*......... 3.68% 2.68% (0.54)%(b) 3.93% 3.27% 2.31%(b) 3.53%
Portfolio
turnover (h).... 35.15% 35.15% 35.15% 35.15% 44.39% 44.39% 44.39%
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
-------------------------
YEAR ENDED JUNE 30,
-------------------------
1993 (A)
-------------------------
INVESTOR A INSTITUTIONAL
---------- --------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $10.58 $ 10.58
---------- --------------
Investment
Activities
Net investment
income (loss).. 0.49 0.49
Net realized and
unrealized
gains (losses)
from
investments.... 0.48 0.48
---------- --------------
Total from
Investment
Activities..... 0.97 0.97
---------- --------------
Distributions
Net investment
income......... (0.53) (0.53)
Net realized
gains.......... (0.10) (0.10)
In excess of net
realized gains
............... -- --
---------- --------------
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 (h).... 67.26% 67.26%
</TABLE>
See notes to financial statements.
165
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND
----------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JUNE 30,
DECEMBER 31, 1997 ---------------------------------------------------------
(UNAUDITED) 1997 1996
---------------------------------------- ----------------------------------- ---------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B
---------- ---------- ------------- ---------- ---------- ------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.89 $10.90 $ 10.89 $ 10.76 $10.76 $ 10.77 $ 10.75 $10.75
------- ------ -------- ------- ------ -------- ------- ------
Investment
Activities
Net investment
income (loss).. 0.22 0.19 0.24 0.49 0.41 0.51 0.47 0.40
Net realized and
unrealized
gains (losses)
from
investments.... 0.27 0.26 0.27 0.14 0.13 0.14 0.04 0.04
------- ------ -------- ------- ------ -------- ------- ------
Total from
Investment
Activities..... 0.49 0.45 0.51 0.63 0.54 0.65 0.51 0.44
------- ------ -------- ------- ------ -------- ------- ------
Distributions
Net investment
income......... (0.26) (0.22) (0.28) (0.46) (0.36) (0.49) (0.47) (0.40)
Net realized
gains.......... (0.03) (0.03) (0.03) (0.04) (0.04) (0.04) (0.03) (0.03)
------- ------ -------- ------- ------ -------- ------- ------
Total
Distributions.. (0.29) (0.25) (0.31) (0.50) (0.40) (0.53) (0.50) (0.43)
------- ------ -------- ------- ------ -------- ------- ------
NET ASSET VALUE,
END OF PERIOD... $ 11.09 $11.10 $ 11.09 $ 10.89 $10.90 $ 10.89 $ 10.76 $10.76
======= ====== ======== ======= ====== ======== ======= ======
Total Return
(excludes sales
and redemption
charges)........ 4.58%(c) 4.15%(c) 4.73%(c) 5.89% 5.05% 6.11% 4.87% 4.13%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $42,004 $3,941 $207,965 $38,302 $3,503 $194,950 $36,681 $3,565
Ratio of expenses
to average net
assets.......... 0.50%(b) 0.88%(b) 0.38%(b) 1.01% 1.76% 0.76% 1.02% 1.77%
Ratio of net
investment
income to
average net
assets.......... 2.08%(b) 1.70%(b) 2.20%(b) 4.48% 3.73% 4.73% 4.32% 3.57%
Ratio of expenses
to average net
assets*......... 0.65%(b) 1.03%(b) 0.52%(b) 1.30% 2.05% 1.05% 1.31% 2.06%
Ratio of net
investment
income to
average net
assets*......... 1.93%(b) 1.55%(b) 2.06%(b) 4.19% 3.44% 4.44% 4.03% 3.28%
Portfolio
turnover (h).... 18.97% 18.97% 18.97% 28.48% 28.48% 28.48% 27.66% 27.66%
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND
-------------------
YEAR ENDED JUNE 30,
-------------------
1996
-------------------
INSTITUTIONAL
-------------------
<S> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 10.76
-------------
Investment
Activities
Net investment
income (loss).. 0.50
Net realized and
unrealized
gains (losses)
from
investments.... 0.04
-------------
Total from
Investment
Activities..... 0.54
-------------
Distributions
Net investment
income......... (0.50)
Net realized
gains.......... (0.03)
-------------
Total
Distributions.. (0.53)
-------------
NET ASSET VALUE,
END OF PERIOD... $ 10.77
=============
Total Return
(excludes sales
and redemption
charges)........ 5.12%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $185,191
Ratio of expenses
to average net
assets.......... 0.77%
Ratio of net
investment
income to
average net
assets.......... 4.57%
Ratio of expenses
to average net
assets*......... 1.06%
Ratio of net
investment
income to
average net
assets*......... 4.28%
Portfolio
turnover (h).... 27.66%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) There was only one share outstanding for the Investor C Shares at June 30,
1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
166
<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 (E)(G) INSTITUTIONAL INVESTOR A INVESTOR B (D) 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%(f) 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 (h).... 26.06% 26.06% 26.06% 26.06% 6.69% 6.69% 6.69%
<CAPTION>
MICHIGAN 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).. 0.50 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 (h).... 35.81% 35.81%
</TABLE>
See notes to financial statements.
167
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
CONSERVATIVE ALLOCATION FUND
-----------------------------------
SIX MONTHS ENDED DECEMBER 30, 1996
DECEMBER 31, 1997 TO
(UNAUDITED) JUNE 30, 1997 (A)
----------------- -----------------
INSTITUTIONAL INSTITUTIONAL
----------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....... $ 10.36 $ 10.00
------- -------
Investment Activities
Net investment income (loss).............. 0.19 0.14
Net realized and unrealized gains (losses)
from investments......................... 0.40 0.34
------- -------
Total from Investment Activities.......... 0.59 0.48
------- -------
Distributions
Net investment income..................... (0.21) (0.12)
Net realized gains........................ (0.07) --
------- -------
Total Distributions....................... (0.28) (0.12)
------- -------
NET ASSET VALUE, END OF PERIOD............. $ 10.67 $ 10.36
======= =======
Total Return (excludes sales and redemption
charges).................................. 5.66%(c) 4.87%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......... $16,200 $10,287
Ratio of expenses to average net assets.... 0.60%(b) 1.64%(b)
Ratio of net investment income (loss) to
average net assets........................ 1.84%(b) 3.12%(b)
Ratio of expenses to average net assets*... 0.75%(b) 1.94%(b)
Ratio of net investment income (loss) to
average net assets*....................... 1.69%(b) 2.82%(b)
Portfolio turnover......................... 78.36% 62.11%
Average commission rate paid (d)........... $0.0800 $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) Not annualized.
(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.
168
<PAGE>
[This page has been left blank intentionally.]
169
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
-------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31 1997
(UNAUDITED)
-------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD..... $ 13.00 $ 13.00 $ 12.92 $ 12.99
------- ------- ------- --------
Investment Activities:
Net investment income
(loss)................. 0.16 0.11 0.11 0.18
Net realized and
unrealized gains
(losses) from
investments and foreign
currencies............. 0.44 0.44 0.43 0.43
------- ------- ------- --------
Total from Investment
Activities............. 0.60 0.55 0.54 0.61
------- ------- ------- --------
Distributions:
Net investment income... (0.19) (0.14) (0.14) (0.21)
Net realized gains...... (0.36) (0.36) (0.36) (0.36)
------- ------- ------- --------
Total Distributions..... (0.55) (0.50) (0.50) (0.57)
------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 13.05 $ 13.05 $ 12.96 $ 13.03
======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)................ 4.62%(c) 4.12%(c) 4.15%(c) 4.68%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $19,077 $ 7,249 $ 986 $257,362
Ratio of expenses to
average net assets...... 0.67%(b) 1.05%(b) 1.05%(b) 0.55%(b)
Ratio of net investment
income to average net
assets.................. 1.15%(b) 0.77%(b) 0.77%(b) 1.27%(b)
Ratio of expenses to
average net assets*..... 0.80%(b) 1.18%(b) 1.18%(b) 0.68%(b)
Ratio of net investment
income to average net
assets*................. 1.02%(b) 0.64%(b) 0.64%(b) 1.14%(b)
Portfolio turnover (g)... 86.02% 86.02% 86.02% 86.02%
Average commission rate
paid (h)................ $0.1006 $0.1006 $0.1006 $ 0.1006
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
170
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND, CONTINUED
---------------------------------------------------------------------------------------------
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
(loss)................ 0.32 0.21 0.21 0.35 0.32 0.23 0.24 0.36
Net realized and
unrealized gains
(losses) 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 (g).. 425.05% 425.05% 425.05% 425.05% 437.90% 437.90% 437.90% 437.90%
Average commission rate
paid (h)............... $0.0518 $0.0518 $0.0518 $ 0.0518 $0.0848 $0.0848 $0.0848 $ 0.0848
</TABLE>
See notes to financial statements.
171
<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 (E) INSTITUTIONAL INVESTOR A INVESTOR B (D) 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 (loss).. 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%(f) 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 (g).... 250.66% 250.66% 250.66% 250.66% 192.39% 192.39% 192.39%
<CAPTION>
BALANCED ALLOCATION FUND,
CONTINUED
------------------------
YEAR ENDED JUNE 30,
------------------------
1993 (A)
------------------------
INVESTOR A INSTITUTIONAL
---------- -------------
<S> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.68 $ 9.68
---------- -------------
Investment
Activities
Net investment
income (loss).. 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 (g).... 177.99% 177.99%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
172
<PAGE>
[This page has been left blank intentionally.]
173
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
AGGRESSIVE ALLOCATION FUND
-----------------------------------
SIX MONTHS ENDED DECEMBER 30, 1996
DECEMBER 31, 1997 TO
(UNAUDITED) JUNE 30, 1997 (A)
----------------- -----------------
INSTITUTIONAL
-----------------------------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....... $ 10.57 $ 10.00
------- -------
Investment Activities
Net investment income (loss).............. 0.06 0.07
Net realized and unrealized gains (losses)
from investments and foreign currencies.. 0.32 0.56
------- -------
Total from Investment Activities.......... 0.38 0.63
------- -------
Distributions
Net investment income..................... (0.07) (0.06)
------- -------
Total Distributions....................... (0.07) (0.06)
------- -------
NET ASSET VALUE, END OF PERIOD............. $ 10.88 $ 10.57
======= =======
Total Return (excludes sales and redemption
charges).................................. 3.73%(c) 6.38%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000).......... $39,943 $39,043
Ratio of expenses to average net assets.... 0.64%(b) 1.32%(b)
Ratio of net investment income (loss) to
average net assets........................ 0.51%(b) 1.61%(b)
Ratio of expenses to average net assets*... 0.72%(b) 1.47%(b)
Ratio of net investment income (loss) to
average net assets*....................... 0.43%(b) 1.46%(b)
Portfolio turnover......................... 42.55% 44.68%
Average commission rate paid (d)........... $0.0987 $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) Not annualized.
(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.
174
<PAGE>
[This page has been left blank intentionally.]
175
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND
-------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1997
(UNAUDITED)
-------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL
---------- ---------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 19.20 $ 19.14 $ 19.23 $ 19.13
-------- ------- ------- --------
Investment Activities
Net investment income
(loss)................ 0.15 0.07 0.07 0.18
Net realized and
unrealized gains
(losses) from
investments........... 1.43 1.43 1.43 1.42
-------- ------- ------- --------
Total from Investment
Activities............ 1.58 1.50 1.50 1.60
-------- ------- ------- --------
Distributions
Net investment income.. (0.14) (0.07) (0.06) (0.17)
Net realized gains..... (3.18) (3.18) (3.18) (3.18)
-------- ------- ------- --------
Total Distributions.... (3.32) (3.25) (3.24) (3.35)
-------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 17.46 $ 17.39 $ 17.49 $ 17.38
======== ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 8.43%(c) 8.02%(c) 8.01%(c) 8.56%(c)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $103,293 $24,956 $ 852 $274,028
Ratio of expenses to
average net assets..... 0.80%(b) 1.18%(b) 1.18%(b) 0.68%(b)
Ratio of net investment
income to average net
assets................. 0.74%(b) 0.36%(b) 0.35%(b) 0.86%(b)
Ratio of expenses to
average net assets*.... 0.80%(b) 1.18%(b) 1.18%(b) 0.68%(b)
Ratio of net investment
income to average net
assets*................ 0.74%(b) 0.36%(b) 0.35%(b) 0.86%(b)
Portfolio turnover (g).. 17.81% 17.81% 17.81% 17.81%
Average commission rate
paid (h)............... $ 0.0535 $0.0535 $0.0535 $ 0.0535
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
(h) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of portfolio shares purchased and sold
for which commissions were charged.
See notes to financial statements.
176
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND, CONTINUED
---------------------------------------------------------------------------------------------
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 (g).. 20.14% 20.14% 20.14% 20.14% 40.75% 40.75% 40.75% 40.75%
Average commission rate
paid (h)............... $0.0800 $0.0800 $0.0800 $ 0.0800 $0.0800 $0.0800 $0.0800 $ 0.0800
</TABLE>
See notes to financial statements.
177
<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 (E) INSTITUTIONAL INVESTOR A INVESTOR B (D) 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 (loss).. 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%(f) 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 (g).... 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 (loss).. 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 (g).... 67.26% 67.26%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A Shares or Institutional Shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Not annualized.
(d) Period from February 4, 1994 (commencement of offering of Investor B
Shares) to June 30, 1994.
(e) Period from November 16, 1994 (commencement of offering of Investor C
Shares) to June 30, 1995.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
Shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
178
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EMERGING MARKETS FUND
-------------------------------------------------------------------------
DECEMBER 29, 1997 TO DECEMBER 31, 1997 (A)
(UNAUDITED)
-------------------------------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INSTITUTIONAL Z
---------- ---------- ---------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.00 $10.00 $10.00 $10.00 $10.00
------ ------ ------ ------ ------
Investment Activities
Net investment income
(loss)................ -- -- -- -- --
Net realized and
unrealized gains
(losses) from
investments........... -- -- -- -- --
------ ------ ------ ------ ------
Total from Investment
Activities............ -- -- -- -- --
------ ------ ------ ------ ------
Distributions
Net investment income.. -- -- -- -- --
Net realized gains..... -- -- -- -- --
------ ------ ------ ------ ------
Total Distributions.... -- -- -- -- --
------ ------ ------ ------ ------
NET ASSET VALUE, END OF
PERIOD................. $10.00 $10.00 $10.00 $10.00 $10.00
====== ====== ====== ====== ======
Total Return (excludes
sales and redemption
charges)............... -- -- -- -- --
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $ 2 $ 2 $ 2 $ 2 $ 2
Ratio of expenses to
average net assets..... 0.02 %(b) 0.02 %(b) 0.02 %(b) 0.01 %(b) 0.01 %(b)
Ratio of net investment
income (loss) to
average net assets..... (0.02)%(b) (0.02)%(b) (0.02)%(b) (0.01)%(b) (0.01)%(b)
Ratio of expenses to
average net assets*.... 0.02 %(b) 0.02 %(b) 0.02 %(b) 0.01 %(b) 0.01 %(b)
Ratio of net investment
income (loss) to
average net assets*.... (0.02)%(b) (0.02)%(b) (0.02)%(b) (0.01)%(b) (0.01)%(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. Due to the short period in
operation, per share data was insignificant.
(b) Annualized.
See notes to financial statements.
179
<PAGE>
[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
---------------------------------
---------------- Bulk Rate
---------------- U.S. Postage
---------------- PAID
---------------- Columbus, Ohio
---------------- Permit No. 2443
---------------------------------
Parkstone offers investors:
. Expert money management from First of America Investment Corporation
. Low initial investment
. An automatic investment program
. The opportunity to change investments when personal needs change
. 24-hour access to information about investments through FUNDATA(R) at
1-800-355-4555
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