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PARKSTONE
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MUTUAL FUNDS
[PICTURE APPEARS HERE]
May 31, 1998
ANNUAL REPORT
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Table of Contents
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The Parkstone Group of Funds May 31, 1998
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 4
Portfolio Performance Discussion............................................ 6
Report of Independent Accountants........................................... 35
Statements of Assets and Liabilities........................................ 36
Statements of Operations.................................................... 41
Statements of Changes in Net Assets......................................... 50
Statements of Cash Flows.................................................... 59
Schedules of Portfolio Investments.......................................... 62
Notes to Financial Statements............................................... 113
Financial Highlights........................................................ 138
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1
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A Message From The Chairman
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The Parkstone Group of Funds May 31, 1998
Dear Shareholders:
It was a year of solid gains for the financial markets, and a year of change
for the Parkstone Funds. During the course of the 11 months ended May 31, 1998,
the Dow Jones Industrial Average rocketed 1569 points higher. With the prospect
of the first government budget surplus in decades and no prospect of inflation,
the fixed-income markets gained ground as well. As a result, we're pleased to
report that the year was a very good one for financial markets and for
investors.
A BROADER TALENT POOL AND MORE OPTIONS
It was also an eventful year for the Parkstone Funds. On March 31, 1998, the
merger of National City and First of America Bank Corporation was completed. As
of that date, First of America Investment Corporation became part of National
City, which greatly expands distribution opportunities for the Parkstone Funds.
In addition, as a direct result of the merger of National City and First of
America, our funds will be advised and managed by a larger team of investment
professionals.
This team, which includes many Parkstone managers, places a high premium on
disciplined investment management, superior performance and responsiveness to
client service. The depth and breadth of expertise and experience this team
brings to our funds will enhance our ability to meet our clients' objective--as
well as offer a broad array of investment products, strong investment
performance and a comprehensive package of investment advice.
A FEW CHANGES
Of course, while much remains the same with the Parkstone Funds, there have
also been some changes in management of several of the Parkstone portfolios.
Rest assured, however, that our team of investment advisors are dedicated to
maintaining--and achieving--the objectives of the Parkstone Funds.
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 eleven months
ended May 31, 1998. You will also find a letter from our Investment Advisor,
which includes an economic outlook for the coming months. We urge you to read
this material closely.
2
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A Message From The Chairman, continued
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The Parkstone Group of Funds May 31, 1998
NOTICE TO SHAREHOLDERS
PLEASE BE ADVISED OF THE FOLLOWING FACTS ABOUT MUTUAL
FUNDS:
. YOUR PRINCIPAL IS AT RISK.
. NOT AN OBLIGATION OF FIRST OF AMERICA OR NATIONAL CITY.
. NO FDIC COVERAGE.
Finally, we thank you for your continued confidence in us. As always, if you
have any questions or require any assistance, please don't hesitate to call us
at 1-800-451-8377.
Sincerely,
/s/ John Rapp
John Rapp
Chairman
The Parkstone Funds
THE PARKSTONE FUNDS(R) ARE NOT FDIC INSURED AND ARE NOT OBLIGATIONS OF, OR
ENDORSED OR GUARANTEED BY, ANY BANK OR ITS AFFILIATES. INVESTMENT PRODUCTS
INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
3
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Message From Your Investment Adviser
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The Parkstone Group of Funds May 31, 1998
Dear Shareholders:
Benign inflation, low interest rates, an economy growing steadily--as Federal
Reserve Chairman Alan Greenspan recently noted, domestically, economic
conditions have never been more positive. In its eighth year of expansion, our
economy is moving along briskly--and there are few indications that a
significant change in this environment is in the offing. However, is this
really the case?
FLU SYMPTOMS
While personal consumption and investment in the United States remain extremely
strong, economies abroad are considerably weaker and--because of the situation
in Asian markets and the sheer strength of the dollar--may grow even weaker.
Consequently, U.S. exports are slowing, and our trade deficit is exploding. In
fact, the deficit is now estimated to have subtracted a full 2.6% from growth
in the first quarter alone--and, we believe, will likely dampen growth even
more over the next several quarters as a wave of imports from distressed Asian
manufacturers reaches our shores.
Of course, a slower rate of growth, as the Federal Reserve has preached for
several years, is not necessarily a negative. In fact, minutes from the March
meeting of the Federal Reserve Open Market Committee (FOMC) showed that the Fed
changed its bias from a neutral stance to one of tightening. At that meeting,
the members agreed that should the strength of the economic expansion and the
firming of the labor markets persist, policy tightening likely would be needed
at some point to head off imbalances that might undermine economic growth.
However, the markets then--and now--clearly did not agree. The Fed Fund and
Eurodollar futures have yet to show a tightening in prices for 1998.
HIGHER OR LOWER INTEREST RATES
In addition, looking ahead, we do not believe the Fed will tighten rates
anytime soon either. In fact, we expect to see the economy growing in the range
of 2.5% to 3.0% in the second half of the year, with consumption and housing
remaining strong, investment slowing and trade finally stabilizing, albeit at
record deficit levels. Inflation should remain calm given the continued decline
in goods prices, the strength of the dollar and the extremely competitive
pricing environment.
Consequently, while cases can be made for both higher and lower interest rates,
we believe the Fed will remain on hold through at least the summer. Moreover,
given the environment, consistently good news on inflation and the continued
turmoil in Asian and other markets, we believe the long bond has yet to see its
low. What, then, is the reason for concern?
THE BIGGER PICTURE . . .
In short, after eight years of uninterrupted expansion and increasing
productivity, our economy and some of our corporations are now facing some new
and very real pressures at home and abroad. In markets around the world, the
strength of the dollar is making U.S. goods prohibitively expensive for
potential consumers. At the same time, at home, with imports from markets with
devalued currencies entering the marketplace at record levels, corporations
have very little, if any, pricing power. This, coupled with increasing wage
pressures from a tight domestic labor market, is beginning to squeeze profit
margins--and may soon impact corporate profits and growth.
Previously in the expansion, increases in productivity have more or less offset
much of these pressures. At this point, however, productivity is no longer
increasing as rapidly. Consequently, after years of simply fantastic
performance, we do expect to see corporate profit growth slow to lower levels.
Thus, we believe earnings estimates appear overly optimistic--even while stocks
are valued at peak multiples of peak profits.
4
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Message From Your Investment Adviser, continued
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The Parkstone Group of Funds May 31, 1998
. . . AND WHAT IT SHOWS
Consequently, now is the time to approach the markets cautiously. Looking out
longer term, we are extremely optimistic regarding the markets--we believe our
economy has never been stronger, our corporations have never been leaner, and
the potential has never been as bright. Over the short-term, however, upside
potential may be somewhat limited, and downside risks are increasing.
In short, many of the trends that have fueled our advance over the past several
years seem to be running out of steam now. Consequently, rather than another
year of double-digit gains in stock prices, we would not be surprised--when all
has been said and done--to see the market return to its historic norm of 9% or
so.
Sincerely,
/s/ Mark R. Kummerer
Mark R. Kummerer
Director
5
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
Small Capitalization Fund+
In short, it was a disappointing year for small-cap investors, in general, and
for growth investors, in particular. Despite the sheer fundamental strength of
many companies in this sector, market sentiment continued to favor larger cap
issues. Therefore, while the earnings and profits of many of our holdings
increased at a rate double or triple that of large-cap issues, the stock prices
of most remained stable or--in the case of technology and health care stocks--
even weakened.
Given the dearth of interest in the small cap sector, bright moments were few.
Nevertheless, there were some, and they were impressive, Omni Energy Services
(0.8% of the portfolio's net assets), Envoy (1.6%) and Staff Leasing (1.8%)*
soared 40% or more over the course of the period. Overall, however, the period
was a discouraging one for small-cap investors. For the year ended May 31,
1998, the Fund produced a total return of 5.48% (Investor A shares without
sales charge).
OUTSTANDING VALUES
Out of favor for more than two years now, many of the stocks in the small-cap
sector are astonishingly cheap when compared to larger capitalization issues.
Moreover, we expect that many of the companies the portfolio has invested in
may grow at a rate of 40% or more in the year ahead--and make these stocks even
more attractive.
Therefore, we believe that when the market does turn and notice small-cap
stocks, and, in particular, small-cap growth stocks, again, the move upward
could be a powerful one. Consequently, we are extremely optimistic about the
prospects for the Fund over the long-term. Currently, however, sentiment
continues to favor larger cap issues and may do so in the months ahead.
As of May 31, 1998, the top five holdings in the Fund's portfolio were Visio
Corp. (3.2% of the portfolio's net assets), Concord EFS (2.7%), Orthodontic
Centers of America (2.2%), Veritas (2.2%) and Sanmina Corp. (2.1%).*
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* The composition of the Portfolio is subject to change.
+ Small-capitalization funds typically carry additional risks since smaller
companies general have a higher risk of failure and, historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
6
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
---------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
---------------------------------
Investor A* 0.74% 14.72% 16.82%
---------------------------------
Institutional 5.77% 16.06% 17.53%
---------------------------------
* Reflects 4.50% Sales Charge
Average Annual Total Return
As of May 31, 1998
---------------------------------
Since
1 Year Inception
(2/4/94)
---------------------------------
Investor B** -0.19% 13.22%
---------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
---------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
---------------------------------
Investor C*** 4.81% 15.28% 17.12%
---------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
SMALL CAPITALIZATION FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor A Institutional Russell 2000
Oct-88 $ 9,551 $10,000 $10,000
Jun-89 11,136 11,660 11,512
Jun-90 14,285 14,957 11,862
Jun-91 13,320 13,946 12,008
Jun-92 15,045 15,752 13,753
Jun-93 21,931 22,962 17,324
Jun-94 21,811 22,927 18,086
Jun-95 31,599 33,318 21,716
Jun-96 47,378 49,987 26,913
Jun-97 45,231 47,791 31,308
May-98 44,361 47,013 36,398
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor B** Russell 2000
Feb-94 $10,000 $10,000
Jun-94 8,382 9,071
Jun-95 12,155 10,892
Jun-96 18,390 13,498
Jun-97 17,431 15,701
May-98 17,093 18,254
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor C*** Russell 2000
Oct-88 $10,000 $10,000
Jun-89 11,560 11,512
Jun-90 14,957 11,862
Jun-91 13,946 12,008
Jun-92 15,752 13,753
Jun-93 22,962 17,324
Jun-94 22,927 18,086
Jun-95 33,100 21,716
Jun-96 49,092 26,913
Jun-97 46,598 31,308
May-98 45,462 36,398
The Fund's performance is 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 PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL
FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THE ORIGINAL COST.
7
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Portfolio Performance Discussion
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The Parkstone Group of Funds May 31, 1998
MID CAPITALIZATION FUND
The action was where the liquidity was during the year ended May 31, 1998--and
therefore, the largest and best-known names were strong performers during the
period. Nonetheless, while the vast majority of mid- and smaller capitalization
stocks were overlooked and undervalued by comparison, several of the holdings
of the portfolio did make impressive gains.
Over the course of the year, Health Management Associates (3.1% of the
portfolio's net assets), SunAmerica (2.8%) and Finova (2.5%)* all gained 50% or
more. Chancellor Media (1.9%) rose an astonishing 112%. Nevertheless, with
market sentiment so clearly favoring larger capitalization issues, mid-cap
stocks lagged--and smaller capitalization issues more or less wilted in
comparison, from neglect. Focused on these sectors, and with a sizable portion
of its assets invested in small-cap issues, the Fund's performance lagged as
well. For the twelve months ended May 31, 1998, the Fund posted a total return
of 21.40% (Investor A shares without sales charge).
SENTIMENTAL FAVORITES
We remain very optimistic about the Fund's prospects in the year ahead. True to
any growth strategy, the portfolio is heavily weighted in health care and
technology: two sectors that we believe offer the best long-term growth
potential than many others. In addition, the Fund has sizable positions in
consumer cyclicals. Given that personal incomes are rising faster than
inflation, the fundamentals suggest that this sector could produce strong
results in the coming year. At the same time, however, sentiment still clearly
favors larger capitalization issues, and they may continue to outperform over
the near-term. Therefore, we are reducing our exposure in the small-cap sector
slightly--and put the money to work in companies we believe are more highly
capitalized and better able to ride the waves of sentiment.
As of May 31, 1998, the top five holdings in the Fund's portfolio were Service
Corp. International (3.1% of the Fund's net assets), Health Management
Associates (3.1%), SunAmerica (2.8%), Paychex (2.7%) and Chancellor Media Corp.
(2.6%). *
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* The composition of the portfolio is subject to change.
8
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor A* 15.93% 13.54% 14.32%
-----------------------------------------------
Institutional 21.52% 14.73% 14.93%
-----------------------------------------------
* Reflects 4.50% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 15.79% 12.92%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor C*** 20.79% 14.03% 14.57%
-----------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
MID CAPITALIZATION FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor A* Institutional S&P 400 Index
Oct-88 $ 9,551 $ 10,000 $ 10,000
Jun-89 11,159 11,683 12,293
Jun-90 13,305 13,930 14,190
Jun-91 13,245 13,867 16,012
Jun-92 15,255 15,972 18,982
Jun-93 18,524 19,381 23,290
Jun-94 18,048 18,909 23,281
Jun-95 22,533 23,674 28,483
Jun-96 29,197 30,736 34,631
Jun-97 30,886 32,450 42,710
May-98 36,058 37,941 53,971
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor B** S&P 400
Feb-94 $ 10,000 $ 10,000
Jun-94 8,430 9,059
Jun-95 10,486 11,083
Jun-96 13,689 13,475
Jun-97 14,407 16,619
May-98 16,897 21,000
[LINE GRAPH APPEARS HERE]
Value of $10,000 Investment
Investor C*** S&P 400
Oct-88 $ 10,000 $ 10,000
Jun-89 11,583 12,293
Jun-90 13,930 14,190
Jun-91 13,867 16,012
Jun-92 15,972 18,982
Jun-93 19,381 23,290
Jun-94 18,909 23,281
Jun-95 23,364 28,483
Jun-96 30,066 34,631
Jun-97 31,621 42,710
May-98 36,799 53,971
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-Cap Fund reflects the
deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO
THAT AN INVESTOR'S SHARES WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE
ORIGINAL COST.
9
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
LARGE CAPITALIZATION FUND
Investors' key concern during the year ended May 31, 1998, was liquidity--and
therefore, large-capitalization stocks led the market to ever-higher highs
throughout the period. Of course, there were a few bumpy moments in the fall
and early spring as investors worried about the impact of collapsing Asian
currencies on the profits of multinationals. But, at least initially, it seemed
that few would experience problems.
Among the funds largest holdings Pfizer (3.4% of the portfolio's net assets)
was up 104% on the strength of its new impotence drug, Viagra. Lucent
Technologies (3.1%) and Warner-Lambert (2.8%) too, made gains of 123% and 90%
respectively over the course of the period. Therefore, the Fund benefited
handsomely and posted a total return of 33.05% (Investor A shares without sales
charge) for the year ended May 31, 1998.
HOW MUCH BETTER CAN IT GET?
As Alan Greenspan recently noted, economic conditions have never been better.
Inflation is benign, interest rates are low, and our economy is in its eighth
year of expansion and gives every indication of continuing growth. In short,
the backdrop is extremely positive--and yet, we believe there is reason for
caution in the months ahead.
Clearly, at some point, we believe U.S. companies will feel the impact of the
cheapening of currencies around the world. In addition, the strength of the
dollar is dampening enthusiasm for U.S. exports considerably. Domestically,
wage pressures are increasing and the pricing power of even the largest
corporations is weak. Consequently, while we are optimistic about the long-term
prospects for larger cap issues, we are very carefully monitoring the pressures
and competitors they face both at home and abroad.
As of May 31, 1998, the top five holdings in the Fund's portfolio were Pfizer
(3.4% of the portfolio's net assets), Lucent Technologies (3.1%), Cisco Systems
(3.1%), Warner-Lambert (2.8%) and Home Depot (2.7%).*
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* The composition of the portfolio is subject to change.
10
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/1/96)
-----------------------------------------------
Investor A* 27.06% 25.52%
-----------------------------------------------
Investor B** 27.13% 25.93%
-----------------------------------------------
Investor C*** 31.89% 26.84%
-----------------------------------------------
* Reflects 4.50% Sales Charge
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(12/28/95)
-----------------------------------------------
Institutional 33.36% 28.83%
-----------------------------------------------
LARGE CAPITALIZATION FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor A* Investor B** Investor C*** S&P 500
Feb-96 $ 9,547 $ 10,000 $ 10,000 $ 10,000
Jun-96 10,405 10,477 10,714 10,653
Jun-97 13,477 14,349 13,930 13,490
May-98 16,979 17,107 17,395 16,874
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Institutional S&P 500
Dec-95 $ 10,000 $ 10,000
Jun-96 11,286 11,032
Jun-97 14,650 15,202
May-98 18,483 19,018
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
which represents the performance of the U.S. stock market as a whole. The index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Large Capitalization Fund reflects the deduction
of fees for these value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST.
11
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
INTERNATIONAL DISCOVERY FUND+
To put it simply, the year ended May 31, 1998, was an interesting one for
international investors. Early in the period, currency problems engulfed Asian
markets, and over the course of the next several months, investors worried that
this crisis would seriously reduce global economic growth. At the same time,
profound structural changes were taking place in Europe as markets there moved
closer to monetary union. These changes created a very positive environment for
growth in the region.
With only a small portion of its assets invested in the Asian arena, the Fund
was not as dramatically impacted by events there. Performance was somewhat
disappointing, however, due to our holdings in smaller and middle-
capitalization companies in the U.K. and Continental Europe. There, as in the
U.S. domestic market, small- and mid-cap stocks were simply overlooked as
investors stampeded to large-cap issues. Consequently, for the year ended
May 31, 1998, the Fund posted a total return of 9.35% (Investor A shares
without sales charge), versus its benchmark, the Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index, which produced a
return of 11.40%.
GOING FORWARD
We will be monitoring events in Asia very closely in the coming months. Very
little progress has been made in addressing this region's structural problems--
and there is little to indicate that any will be made in the near future. The
Fund has only minimal exposure in this arena; nonetheless, the situation is
worrisome, and markets worldwide will continue to feel the impact of the Asian
economic crisis.
At the same time, we believe Continental Europe continues to offer investors
long-term opportunities. European corporations are in the early stages of
creating more efficient, globally competitive organizations--a process that
will compound earnings growth as profit margins expand. As a result, we are
very optimistic about the prospects for growth in this region and in Latin
America, where relatively low valuations and projected double-digit earnings
growth offer investors strong potential.
As of May 31, 1998, the top five holdings in the Fund's portfolio were Altran
Technologies (2.6% of the portfolio's net assets), Oce van der Grinten (2.6%),
Mannesmann AG (2.5%), Nestles SA (2.4%) and Alcatel Alsthom (2.4%).*
- -------
+ International investing is subject to certain risk factors, such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and/or differences in accounting and other financial
standards.
* The composition of the Fund's portfolio is subject to change.
12
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(12/29/92)
-----------------------------------------------
Investor A* 4.42% 7.79% 10.64%
-----------------------------------------------
Institutional 9.58% 9.01% 11.86%
-----------------------------------------------
* Reflects 4.50% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 3.58% 4.65%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(12/29/92)
-----------------------------------------------
Investor C*** 8.58% 8.55% 11.42%
-----------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
INTERNATIONAL DISCOVERY FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Morgan Stanley Europe
Investor A* Institutional Australia & Far East
Dec-92 $ 9,551 $ 10,000 $ 10,000
Jun-93 10,994 11,552 12,228
Jun-94 12,642 13,299 14,104
Jun-95 12,366 13,051 14,115
Jun-96 14,177 14,977 15,989
Jun-97 16,444 17,424 18,040
May-98 17,297 18,353 18,998
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Morgan Stanley Europe
Investor B** Australia & Far East
Feb-94 $ 10,000 $ 10,000
Jun-94 8,981 9,971
Jun-95 8,728 9,979
Jun-96 9,989 11,304
Jun-97 11,535 12,755
May-98 12,168 13,431
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Morgan Stanley Europe
Investor C*** Australia & Far East
Dec-92 $ 10,000 $ 10,000
Jun-93 11,452 12,228
Jun-94 13,299 14,104
Jun-95 13,146 14,115
Jun-96 14,937 15,989
Jun-97 17,197 18,041
May-98 17,969 18,998
The Fund's performance is compared to the Morgan Stanley Capital International
Europe, Australia and Far East (EAFE) Index, which represents the performance
of the major stock markets in those regions. The index is unmanaged and does
not reflect the deduction of fees associated with a mutual fund, such as
investment management and fund accounting fees. The performance of the
Parkstone International Discovery Fund reflects the deduction of fees for these
value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE
INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
13
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Portfolio Performance Discussion, continued
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The Parkstone Mutual Funds May 31, 1998
CONSERVATIVE ALLOCATION FUND
Interest rates tumbled as worries about the stability of Asian markets swept
through the U.S. markets during the year ended May 31, 1998. Investors sought
liquidity and safety--and found them in high-quality, fixed-income securities
and larger capitalization stocks. With a sizable portion of its assets invested
in high-quality bonds, the Fund benefited handsomely as the bond markets
rallied. Holdings in the large-cap sector also made a solid contribution to
performance.
Nevertheless, a portion of the portfolio, albeit considerably smaller than the
allocation to fixed-income securities, was invested in small- and mid-cap
stocks. Despite the sheer fundamental strength of their balance sheets and
astonishingly cheap valuations in comparison to larger capitalization issues,
these stocks were once again overlooked as market sentiment focused almost
exclusively on large caps. As a result, while performance was strong, the Fund
fell short of its benchmarks. For the year ended May 31, 1998, the Fund
produced a total return of 13.56%, versus returns of 30.66% and 10.99% for the
S&P 500 and the Salomon Brothers Broad Index, respectively.
INTERESTING TIMES
We remain cautiously optimistic about the prospects for the Fund in the months
ahead. We believe the full impact of events in Asia has yet to be felt. When it
is, our economy may slow, and interest rates, already low, could trend lower--
which would create a very positive environment in the fixed-income markets.
Moreover, it is our view that investors' focus on larger cap issues is sure to
shift at some point. When it does, the Fund's holdings in the small- and mid-
cap sectors--which are significantly undervalued now--could move upward
quickly.
As of May 31, 1998, approximately 28% of the Fund's net assets were invested in
stocks, 69% in bonds, and the remaining 3% was 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
(5.8) years. The top five holdings in the equity portion of the portfolio were
Pfizer (0.6% of the portfolio's net assets), Service Corp. International
(0.6%), Warner-Lambert (0.5%), Cardinal Health (0.5%), and SunAmerica (0.5%).*
- -------
* The Portfolio's composition is subject to change.
14
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(12/30/96)
-----------------------------------------------
Institutional 13.56% 11.45%
-----------------------------------------------
CONSERVATIVE ALLOCATION FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Lehman Intermediate
Government/Corporate Salomon Brothers Broad
Institutional S&P 500 Bond Index Broad Index
<S> <C> <C> <C> <C>
Dec-96 $ 10,000 $ 10,000 $ 10,000 $ 10,000
Jan-97 9,865 10,621 10,039 10,039
Feb-97 9,865 10,707 10,058 10,050
Mar-97 9,865 10,262 9,989 9,948
Apr-97 10,486 10,874 10,107 10,090
May-97 10,486 11,542 10,190 10,185
Jun-97 10,486 12,057 10,283 10,307
May-98 11,660 15,082 11,091 10,736
</TABLE>
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
the Lehman Brothers Intermediate Government/Corporate Bond Index and the
Salomon Brothers Broad Index The S&P 500 Index represents the performance of
the U.S. stock market as a whole; the Lehman Brothers Intermediate
Government/Corporate Bond Index is representative of intermeidate-term bonds;
and the Salomon Brothers Broad 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. The performance of the Parkstone Conservative Allocation Fund
reflects the deduction of fees for these value-added services. PAST PERFORMANCE
IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL
FLUCTUATE, SO THAT AN INVESTOR'S SHARE, WHEN REDEEMED, MAY BE WORTH MORE OR
LESS THAN THE ORIGINAL COST.
15
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
BALANCED ALLOCATION FUND
Benign inflation and a steadily growing economy provided a positive backdrop
for the equity market during the year ended May 31, 1998. Yet, as the market
roared higher, investors sought safety--and with every notch upward in the Dow,
they focused their attention ever more narrowly on large-capitalization stocks.
Moreover, as events in Asia unfolded throughout the fall and early spring,
enthusiasm for liquidity and safety grew even stronger. Therefore, large-cap
stocks moved even higher, and bonds rose, too.
As investors rushed to "safety," most small- and mid-cap stocks were left
behind--and international stocks, particularly those with close ties to Asian
markets, wilted. Given the environment, bonds gained ground, but their returns,
too, simply could not compete with the large caps. As a result, the performance
of widely diversified portfolios, particularly those with international
holdings like ours, lagged the benchmarks. For the year ended May 31, 1998, the
Fund posted a total return of 15.41% (Investor A shares without load) versus
the average of its industry benchmarks, the S&P 500 and the Salomon Brothers
Broad Index, which were 30.66% and 10.99%, respectively, over the same period.
NOTHING LASTS FOREVER
Ironically, as the prices of large-cap stocks rose over the past year, so did
downside risk in the sector. Valuations in the sector are now extremely high in
comparison to small- and mid-capitalization stocks. On a risk-adjusted basis,
bonds, too, are now very attractive in comparison. In short, at current levels,
it is somewhat debatable whether large-capitalization stocks still offer the
level of safety investors seem to be seeking--and, at some point, we expect
market sentiment will shift in response. Widely diversified, and holding
several stocks that have been overlooked and undervalued for quite some time,
we believe the portfolio is well positioned should this turn of events occur.
As of May 31, 1998, approximately 51% of the Fund's net assets were invested in
stocks, 44% in bonds, and the remaining 5% was 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 9.10 years. The top five holdings in the equity portion of the
portfolio were SunAmerica Inc. (0.7%), Pfizer, Inc. (0.7%), Service Corp.
International (0.7%), Lucent Technologies (0.6%) and Warner-Lambert Co. (0.6%)*
- -------
* The composition of the Portfolio is subject to change.
16
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
- ------------------------------------------
Investor A* 10.22% 10.78% 10.59%
- ------------------------------------------
Institutional 15.64% 12.04% 11.57%
- ------------------------------------------
*Reflects 4.50% Sales Charge
Balanced Allocation Fund
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor A* Institutional S&P 500 Broad Index
---- ----------- ------------- ------- -----------
Jan-92 $ 9,551 $10,000 $10,000 $10,000
Jun-92 9,354 9,794 10,121 10,418
Jun-93 11,013 11,523 11,500 11,666
Jun-94 10,834 11,357 11,662 11,528
Jun-95 12,889 13,540 14,702 12,975
Jun-96 15,146 15,951 18,525 13,622
Jun-97 16,905 17,843 24,953 14,732
May-98 18,918 20,006 31,213 15,345
Average Annual Total Return
As of May 31, 1998
- -------------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------------
Investor B** 9.58% 10.45%
- -------------------------------------
**Reflects Applicable Contingent
Deferred Sales Charge of 5.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor B** S&P 500 Broad Index
---- ------------ ------- -----------
Feb-94 $10,000 $10,000 $10,000
Jun-94 8,820 9,344 9,947
Jun-95 10,434 11,780 10,689
Jun-96 12,344 14,843 11,222
Jun-97 13,714 17,902 12,136
May-98 15,361 22,393 12,641
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
- ------------------------------------------
Investor C*** 14.51% 11.10% 10.83%
- ------------------------------------------
***Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor C*** S&P 500 Broad Index
---- ------------- ------- -----------
Jan-92 $10,000 $10,000 $10,000
Jun-92 9,694 10,121 10,418
Jun-93 11,523 11,500 11,666
Jun-94 11,357 11,662 11,528
Jun-95 13,348 14,702 12,975
Jun-96 15,571 18,525 13,622
Jun-97 17,268 24,953 14,732
May-98 19,179 31,213 15,345
The Fund's performance is compared to the Standard & Poor's 500 Stock Index, a
broad measure of the stock market as a whole, and the Salomon Brothers Broad
Index, which represents the performance of the overall bond market. The indices
are unmanaged and do not reflect the deduction of fees associated with a mutual
fund, such as investment management and fund accounting fees. The performance
of the Parkstone Balanced Fund reflects the deduction of fees for these value-
INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
17
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
AGGRESSIVE ALLOCATION FUND
As troubles arose in Asia during the year ended May 31, 1998, investors sought
liquidity and safety. To this end, investors focused on high-quality fixed-
income securities and large-capitalization stocks. Already highly valued, the
large-caps moved higher. The bond market, too, rallied as interest rates
tumbled. Sadly, much as they have been for the past two years, smaller and mid-
capitalization stocks continued to be overlooked as investors sped to "safety."
International stocks suffered, too, as the majority of markets around the world
responded to events in Asia more dramatically than the U.S. equity market.
Aggressively oriented, the Fund held slightly over 20% of its net assets in
fixed-income securities and more than 75% of its net assets in stocks
throughout the period.* While a portion of the equity allocation was invested
in large-cap issues, the Fund also held positions in a number of small- and
mid-cap companies. In addition, a sizable portion of its assets were invested
internationally. Consequently, while performance of both our stock and bond
holdings was good, it simply was not as impressive as the performance of the
large-cap sector alone. For the year ended May 31, 1998, the Fund produced a
total return of 16.79%.
THE SPOTLIGHT WILL SHIFT
Simply put, at some point, the market's infatuation with larger cap issues is
likely to disappear--if for no other reason than with every step higher,
downside risks and the attractiveness of neglected sectors increase.
Eventually, too, we anticipate that many of the larger cap companies will
feel--to greater or lesser degrees--some impact of the events in Asia. In
addition to extremely strong balance sheets, the majority of the small- and
mid-cap companies we hold have little or no exposure in this region. Moreover,
the international component of the portfolio is focused on regions beyond Asia,
such as Continental Europe, where the benefits of restructuring and downsizing
are now becoming apparent.
As a result, we are optimistic about the Fund's prospects in the months ahead
and more committed than ever to taking a balanced approach to the marketplace.
As of May 31, 1998, approximately 75% of the Fund's net assets were invested in
stocks, 20% in bonds and the remaining 3% was 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 9.09
years. The top five holdings in the equity portion of the portfolio were
Service Corp. International (0.9% of the portfolio's net assets), SunAmerica
(0.8%), Pfizer (0.7%), Cardinal Health (0.7%) and Concord (0.6%).*
- -------
* The Portfolio's composition is subject to change.
18
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
- --------------------------------------
Since
1 Year Inception
(12/30/96)
- --------------------------------------
Institutional 16.79% 13.49%
- --------------------------------------
Aggressive Allocation Fund
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Saloman Brothers
Date Institutional S&P 500 Broad Index
---- ------------- ------- -----------
Dec-96 $10,000 $10,000 $10,000
10,000 10,621 10,039
10,000 10,707 10,050
Mar-97 9,565 10,262 9,948
9,565 10,874 10,090
9,565 11,542 10,185
Jun-97 10,638 12,057 10,307
May-98 11,963 15,082 10,736
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 PREDICTIVE OF FUTURE
RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
19
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
EQUITY INCOME FUND
The Fund was concentrated in dividend-paying stocks and convertibles throughout
the year ended May 31, 1998. While many of these companies were large-cap
stocks, the most stellar performance, to a large extent, was concentrated in
higher risk, growth companies, rather than in low-risk income-producers.
Nonetheless, several of the Fund's holdings made impressive advances. Over the
course of the year, Masco (2.5% of the portfolio's net assets), Dial Corp.
(2.3%) and First Tennessee National (2.0%) all gained over 40%, and Frontier
Corp. (2.1%)* rocketed up 66%.
Although the large cap growth sector provided the best returns, large cap
income-oriented stocks' outpaced many other sectors of the market.While the
Fund fell short of its industry benchmark, the S&P 500, it posted a very
respectable total return of 21.68% (Investor A shares without sales charge) for
the year ended May 31, 1998.
CONSERVATIVELY POSITIONED
While we are optimistic about the prospects for the stock market in the months
ahead, we are cautious. Valuations of large-cap growth stocks are at levels
that are described as lofty--and at some point, sentiment is likely to shift.
At that point, a correction would not be surprising. At the very least, we
could expect to see a very choppy market. Designed to protect assets as well as
provide growth, the Fund's assets remain invested in income-producing stocks
and convertibles with solid records of accomplishment. These holdings should
cushion the blow of any market sell-off. At the same time, should the rest of
the market simply begin to catch up with the Nifty Fifty, the Fund is widely
diversified, with holdings across the market in dividend-paying companies with
strong balance sheets. Consequently, no significant changes are anticipated in
the portfolio's allocation or holdings in the coming months.
As of May 31, 1998, the top five holdings in the Fund's portfolio were Home
Depot (3.9% of the portfolio's net assets), Bristol Myers Squibb (3.8%), JC
Penney Co. (3.6%), American Home Products (3.5%) and MBNA (3.4%).*
- -------
* The composition of the portfolio is subject to change.
20
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------
Investor A* 16.20% 14.00% 14.20%
- ------------------------------------------
Institutional 21.96% 15.21% 14.83%
- ------------------------------------------
*Reflects 4.50% Sales Charge
Equity Income Fund
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Date Investor A* Institutional S&P 500
---- ----------- ------------- -------
Oct-88 $ 9,551 $10,000 $10,000
Jun-89 11,172 11,697 11,673
Jun-90 12,777 13,378 13,599
Jun-91 13,828 14,477 14,628
Jun-92 15,565 16,296 16,590
Jun-93 18,165 19,022 18,851
Jun-94 17,870 18,731 19,116
Jun-95 19,714 20,708 24,100
Jun-96 24,653 25,947 30,366
Jun-97 30,522 32,123 40,903
May-98 35,680 37,622 51,165
Average Annual Total Return
As of May 31, 1998
- -------------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------------
Investor B** 15.78% 13.86%
- -------------------------------------
**Reflects Applicable Contingent
Deferred Sales Charge of 5.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Date Investor B** S&P 500
---- ------------ -------
Feb-94 $10,000 $10,000
Jun-94 8,762 9,344
Jun-95 9,595 11,780
Jun-96 12,090 14,843
Jun-97 14,936 19,994
May-98 17,511 25,010
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------
Investor C* 20.76% 14.44% 14.43%
- ------------------------------------------
***Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Date Investor C*** S&P 500
---- ------------- -------
Oct-88 $10,000 $10,000
Jun-89 11,597 11,673
Jun-90 13,378 13,599
Jun-91 14,477 14,628
Jun-92 16,296 16,590
Jun-93 19,022 18,851
Jun-94 18,731 19,116
Jun-95 20,550 24,100
Jun-96 25,518 30,366
Jun-97 31,352 40,903
May-98 36,392 51,165
The Fund's performance is compared to the Standard & Poor's 500 Stock Index,
which represents the performance of the U.S. stock market as a whole. The index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Equity Income Fund reflects the deduction of fees
for these value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE
RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
21
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
FIXED INCOME FUNDS
The year ended May 31, 1998, was a good one for many fixed-income investors.
Solid growth, benign inflation, a neutral Federal Reserve and the expectation
of the first government budget surplus since the Sixties put downward pressure
on interest rates throughout the year. In the second half, events in Asia
prompted investors to seek quality and safety--and many found it in the U.S.
fixed-income markets.
While many sectors produced sub-par results over the course of the year,
mortgage-backed securities did particularly well. The performance of securities
from Asian markets, as well as corporate securities from companies perceived to
have a large presence in these markets, were negatively impacted by events in
Asia.
While there is little now on the horizon that foreshadows a major change in the
environment, we expect to approach the marketplace cautiously in the months
ahead. Biased in the direction of tightening, the Fed could move to increase
interest rates on any news of inflation or accelerated growth. This seems
rather unlikely now, in that we are beginning to see signs of weakness in our
economy, and activity is expected to slow in the second half of the year.
Therefore, we believe the Fed will remain on hold over the short-term. Looking
out longer term, while strong cases can be made for both higher and lower
interest rates, we believe the Fed's ultimate move will be to lower rates.
BOND FUND
Positioned relatively conservatively throughout much of the period, the Fund
felt the impact of events in Asia but did not suffer significantly. Moreover,
throughout the first half of the year, the Fund's positions in mortgage-backed
securities performed strongly. Nonetheless, as interest rates fell, prepayment
risks increased, and the value of these securities on a fundamental basis
decreased.
Consequently, the Fund was in a position to seize a number of extremely
attractive opportunities in the corporate sector as these bonds suffered a bout
of "Asian Flu." Therefore, the Fund performed strongly over the course of the
year ended May 31, 1998, producing a total return of 10.12% (Investor A Shares
without sales charge).
A LONG-TERM PERSPECTIVE
Given the environment, the months ahead may be even quieter for bond
investors--which, we believe, will significantly reduce opportunities to
implement short-term strategies. Longer term sector strategies seem to hold the
greatest prospect for success, and consequently, in the coming months, barring
any significant change in the environment, we expect to focus our efforts in
this area.
As of May 31, 1998, approximately 48% of the Fund's net assets were invested in
U.S. Treasury and agency securities, 6% in mortgage-backed securities, 28% in
corporate bonds and 13% in asset-backed securities, with the remainder invested
in cash equivalents. As of the same date, the average maturity of the holdings
of the portfolio was 11.99 years; the average credit quality, Aaa.*
- -------
* The composition of the Portfolio is subject to change.
22
<PAGE>
================================================================================
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------
Investor A* 5.73% 5.48% 7.57%
- ------------------------------------------
Institutional 10.46% 6.69% 8.21%
- ------------------------------------------
*Reflects 4.00% Sales Charge
Bond Fund
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor A* Institutional Broad Index
------ ----------- ------------- -----------
Oct-88 $ 9,597 $10,000 $10,000
Jun-89 10,213 10,642 10,801
Jun-90 10,922 11,381 11,635
Jun-91 11,883 12,382 12,896
Jun-92 13,483 14,050 14,722
Jun-93 15,092 15,714 16,485
Jun-94 14,847 15,474 16,290
Jun-95 16,459 17,297 18,334
Jun-96 17,161 18,075 19,249
Jun-97 18,521 19,557 20,818
May-98 20,116 21,294 21,684
Average Annual Total Return
As of May 31, 1998
- -------------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------------
Investor B** 4.29% 5.13%
- -------------------------------------
**Reflects Applicable Contingent
Deferred Sales Charge of 5.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor B** Broad Index
------ ------------ -----------
Feb-94 $10,000 $10,000
Jun-94 9,144 9,497
Jun-95 10,138 10,689
Jun-96 10,605 11,222
Jun-97 11,371 12,136
May-98 12,412 12,641
Average Annual Total Return
As of May 31, 1998
- ------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
- ------------------------------------------
Investor C* 9.33% 5.45% 7.55%
- ------------------------------------------
***Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
Date Investor C*** Broad Index
------ ------------- -----------
Oct-88 $10,000 $10,000
Jun-89 10,542 10,801
Jun-90 11,381 11,635
Jun-91 12,382 12,896
Jun-92 14,050 14,722
Jun-93 15,713 16,485
Jun-94 15,478 16,290
Jun-95 16,780 18,334
Jun-96 17,368 19,249
Jun-97 18,610 20,818
May-98 20,080 21,684
The Parkstone Bond Fund's performance is compared to the Salomon Brothers Broad
Index, which represents the performance of the overall U.S. bond market. The
index is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Bond Fund reflects the deduction of fees for these
value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE
INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
23
<PAGE>
- -------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- -------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
LIMITED MATURITY BOND FUND
While the long markets were relatively quiet, the shorter markets were
positively sleepy at times during the year ended May 31, 1998. As a result,
like most of its peers, the Fund's return was due almost entirely to the
coupon of its holdings, rather than price appreciation. Nevertheless, because
our efforts were focused on yield enhancement throughout the year, the Fund
produced a strong return of 5.83% (Investor A shares without sales charge).
In the months ahead, we do not expect to see volatility in the short end of
the market increase dramatically. Therefore, we will continue to focus our
efforts on yield enhancement. To this end, we may move to increase exposures
in asset-backed securities--which currently offer competitive yields and more
prepayment certainty than mortgage-backed securities.
As of May 31, 1998, approximately 47% of the Fund's net assets were invested
in Treasury securities, 11% in asset-backed securities and 32.1% in corporate
bonds, with the remainder invested in a wide range of shorter term instruments
including U.S. Government agency securities. As of the same date, the average
credit quality of the portfolio was Aaa; the average maturity of the portfolio
was approximately 2.35 years.*
- -------
* The composition of the Portfolio is subject to change.
24
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor A* 1.60% 4.04% 6.17%
-----------------------------------------------
Institutional 6.09% 5.13% 6.75%
-----------------------------------------------
* Reflects 4.00% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 0.14% 3.71%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor C*** 5.01% 3.69% 5.99%
-----------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
LIMITED MATURITY BOND FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Salomon Brothers
1-5 Year
Investment-Grade Merril Lynch
Investor A* Institutional Bond Index 1-3 Yr. Gov/Corp Index
<S> <C> <C> <C> <C>
Oct-88 $ 9,597 $ 10,000 $ 10,000 $ 10,000
Jun-89 10,143 10,570 10,646 10,641
Jun-90 10,864 11,320 11,514 11,535
Jun-91 11,805 12,301 12,726 12,727
Jun-92 13,104 13,654 14,241 14,061
Jun-93 14,147 14,743 15,461 15,012
Jun-94 14,193 14,807 15,589 15,266
Jun-95 15,261 15,956 16,960 16,459
Jun-96 15,928 16,697 17,862 17,369
Jun-97 16,902 17,770 19,078 18,523
May-98 17,747 18,693 19,771 19,690
</TABLE>
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
1-5 Year
Investment-Grade Merril Lynch
Investor B** Bond Index 1-3 Yr. Gov/Corp Index
Feb-94 $ 10,000 $ 10,000 $ 10,000
Jun-94 9,408 9,781 9,959
Jun-95 10,056 10,641 10,737
Jun-96 10,519 11,207 11,331
Jun-97 11,100 11,970 12,084
May-98 11,703 12,405 12,845
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers
1-5 Year
Investment-Grade Merril Lynch
Investor C*** Bond Index 1-3 Yr. Gov/Corp Index
Oct-88 $ 10,000 $ 10,000 $ 10,000
Jun-89 10,570 10,646 10,641
Jun-90 11,320 11,514 11,535
Jun-91 12,301 12,726 12,727
Jun-92 13,654 14,241 14,061
Jun-93 14,743 15,461 15,012
Jun-94 14,807 15,589 15,266
Jun-95 15,336 16,960 16,459
Jun-96 15,906 17,862 17,369
Jun-97 16,742 19,078 18,523
May-98 17,468 19,771 19,690
Until recently, the Parkstone Limited Maturity Bond Fund's performance was
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. However, the fund's benchmark has been
changed to the Merrill Lynch 1-3-Year Government/Corporate Index which
represents the total return of short-term government and corporate bonds. These
indices are unmanaged and do not reflect the deduction of fees associated with
a mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Limited Maturity Bond Fund reflects the deduction
of fees for these value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST.
25
<PAGE>
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Throughout the year ended May 31, 1998, as interest rates moved lower,
prepayment jitters swirled through the mortgage-backed sector of the fixed-
income market. In addition, prepayments were high--not the tidal wave seen in
1993, but certainly, at times, at levels considered significant.
While it did have exposures in this sector, the Fund was not impacted
dramatically by this turn of events. In addition, sizable portions of the
Fund's assets were invested in CMOs, which provide significant prepayment
protections, and Treasury securities. As a result, for the year ended May 31,
1998, the Fund produced a strong return of 7.51% (Investor A shares without
sales charge).
In the months ahead, as we expect interest rates to trend lower rather than
higher over the long-term, we expect to continue peeling back exposures in the
mortgage-backed sector. No other major changes in the Fund's allocation or
maturity structure are anticipated. As of May 31, 1998, approximately 72% of
the Fund's net assets were invested in U.S. Treasury and agency securities,
with the remainder invested in mortgage-backed securities and government
agency-backed CMOs. As of the same date, the average maturity of the Fund's
holdings was 4.46 years.*
- -------
* The composition of the Portfolio is subject to change.
26
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor A* 3.25% 4.22% 6.41%
-----------------------------------------------
Institutional 7.78% 5.29% 6.99%
-----------------------------------------------
* Reflects 4.00% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 1.83% 3.84%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor C*** 6.86% 3.95% 6.27%
-----------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers 1-10
Investor A* Institutional Year Treasury Index
Oct-88 $ 9,597 $ 10,000 $ 10,000
Jun-89 10,069 10,492 10,696
Jun-90 10,781 11,234 11,506
Jun-91 11,785 12,280 12,710
Jun-92 13,203 13,757 14,345
Jun-93 14,380 14,987 15,803
Jun-94 14,251 14,867 15,780
Jun-95 15,490 16,209 17,301
Jun-96 16,062 16,849 18,142
Jun-97 17,011 17,879 19,387
May-98 18,129 19,097 21,062
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor B** Salomon Brothers 1-10
Year Treasury Index
Oct-88 $ 10,000 $ 10,000
Jun-89
Jun-90 9,290 9,669
Jun-91
Jun-92 10,037 10,601
Jun-93
Jun-94 10,450 11,118
Jun-95
Jun-96 10,996 11,881
Jun-97
May-98 11,769 13,367
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Investor C*** Salomon Brothers 1-10
Year Treasury Index
Oct-88 $ 10,000 $ 10,000
Jun-89 10,392 10,696
Jun-90 11,234 11,506
Jun-91 12,280 12,710
Jun-92 13,757 14,345
Jun-93 14,987 15,803
Jun-94 14,867 15,780
Jun-95 15,642 17,301
Jun-96 16,088 18,142
Jun-97 16,897 19,387
May-98 17,912 21,062
The performance of the Parkstone Intermediate Government Obligations Fund is
compared to the Salomon Brothers 1-10-Year Treasury Index, which represents the
performance of Treasury bonds in that maturity range. The index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Parkstone Intermediate Government Obligations Fund reflects the deduction of
fees for these value-added services. PAST PERFORMANCE IS NOT PREDICTIVE OF
FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO THAT AN
INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL
COST.
27
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
U.S. GOVERNMENT INCOME FUND
While many other funds suffered the slings and arrows of prepayment during the
year ended May 31, 1998, the Fund's core holdings of seasoned, "super coupon"
mortgages were again strong performers. Refinanceable at lower rates for many
years now, most of our holdings were not, for whatever reason, refinanced as
rates fell over the period. As a result, while we did see some prepayments, the
performance of the portfolio was slightly impacted by the drop in rates. For
the year ended, the Fund produced a solid return of 8.61% (Investor A shares
without sales charge).
Over the past several years, more and more investors have been attracted to
this type of security--and as a result of this, and the fact that many of these
securities are now expiring every quarter, supply is dwindling. Therefore, it
is far more difficult to increase exposures in this area. As a result, we
expect to begin exploring more traditional opportunities in the mortgage-backed
sector in the months ahead.
As of May 31, 1998, approximately 75% of the Fund's assets were invested in
mortgage-backed securities and commercial mortgage obligations, and 23% in U.S.
Treasury and agency securities. As of the same date, the average maturity of
the Fund's holdings was 6.04 years.*
- -------
* The composition of the Portfolio is subject to change.
28
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(11/12/92)
-----------------------------------------------
Investor A* 4.27% 5.29% 5.56%
-----------------------------------------------
Institutional 8.88% 6.36% 6.52%
-----------------------------------------------
* Reflects 4.00% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 2.72% 5.06%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(11/12/92)
-----------------------------------------------
Investor C*** 7.74% 5.09% 5.38%
-----------------------------------------------
*** Reflects Applicable Contingent Deferred
Sales Charge of 1.00%
U.S. GOVERNMENT INCOME FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers 1-10
Investor A* Institutional Year Treasury
Nov-92 $ 9,597 $ 10,000 $ 10,000
Jun-93 10,110 10,537 10,677
Jun-94 10,205 10,647 10,661
Jun-95 11,069 11,573 11,689
Jun-96 11,730 12,308 12,863
Jun-97 12,535 13,159 13,746
May-98 13,501 14,200 14,934
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers 1-10
Investor B** Year Treasury
Feb-94 $ 10,000 $ 10,000
Jun-94 9,394 9,669
Jun-95 10,148 10,601
Jun-96 10,798 11,118
Jun-97 11,472 11,881
May-98 12,375 12,908
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Salomon Brothers 1-10
Investor C*** Year Treasury
Nov-92 $ 10,000 $ 10,000
Jun-93 10,437 10,677
Jun-94 10,647 10,661
Jun-95 11,207 11,689
Jun-96 11,795 12,863
Jun-97 12,511 13,746
May-98 13,377 14,934
The performance of the Parkstone U.S. Government Income Fund is compared to the
Salomon Brothers 1-10-Year Treasury Index, which represents the performance of
Treasury bonds in that maturity range. The index is unmanaged and does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone U.S.
Government Income Fund reflects the deduction of fees for these value-added
services. PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT
RETURN AND NAV WILL FLUCTUATE, SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST.
29
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
MUNICIPAL BOND FUND+
Unlike other sectors of the fixed-income markets, the municipal markets were
active over the course of the year ended May 31, 1998. Throughout the period,
anticipation of interest rate hikes by the Fed, fears regarding inflation and
uncertainty concerning the situation in Asia kept investors on edge. Despite
all the anticipation and activity, however, the period was--while not a
standout year for investors--a positive one overall.
Looking ahead, we expect the muni markets to be somewhat volatile in the months
ahead, until the direction of interest rates is clearer. Nonetheless, now, we
expect interest rates will eventually move lower rather than increase.
Therefore, we are optimistic about the prospects for municipals in both the
short and long term--particularly for higher quality issues. In fact, even if
rates do not drop dramatically lower, the municipal markets--much like the
equity markets have benefited as the baby boomers have sought to amass wealth--
may benefit in the years ahead as this same generation seeks to preserve it.
Activity in the marketplace does not always create opportunities for
investors--and that was certainly the case for investors focused on the
intermediate sector of the municipal market during the year ended May 31, 1998.
During the period, longer term securities offered the greatest value. Yet, due
to investors' nervousness and resulting desire for flexibility, market
sentiment favored shorter term bonds. In short, those in the middle were
somewhat overlooked. Therefore, for the year ended May 31, 1998, the Fund
slightly underperformed its benchmark and produced a total return of 6.14%
(Investor A shares without sales charge).
Looking ahead, no significant changes are anticipated in the Fund's allocation,
credit or maturity structure. As of May 31, 1998, the average maturity of the
Fund's portfolio was approximately 6.98 years. Widely diversified, the
portfolio held securities issued by more than 32 municipalities, and the
average credit quality of these holdings was AA.*
- -------
+ The fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
* The composition of the portfolio is subject to change.
30
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(10/31/88)
-----------------------------------------------
Investor A* 1.87% 4.00% 5.68%
-----------------------------------------------
Institutional 6.52% 5.10% 6.27%
-----------------------------------------------
* Reflects 4.00% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 0.46% 3.19%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
MUNICIPAL BOND FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Lehman Brothers
Mutual Fund Lehman Brothers
Intermediate Municipal Bond
Investor A* Institutional Index Index
Oct-88 $ 9,597 $ 10,000 $ 10,000 $ 10,000
Jun-89 10,127 10,552 10,672 10,672
Jun-90 10,590 11,035 11,398 11,398
Jun-91 11,385 11,863 12,424 12,424
Jun-92 12,422 12,944 13,888 13,888
Jun-93 13,597 14,171 15,548 15,548
Jun-94 13,694 14,286 15,579 15,579
Jun-95 14,656 15,322 16,945 16,945
Jun-96 15,285 16,019 17,238 18,106
Jun-97 16,123 16,962 18,553 19,605
May-98 16,985 17,913 19,165 21,444
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Lehman Brothers
Mutual Fund Lehman Brothers
Intermediate Municipal Bond
Investor B** Index Index
Feb-94 $ 10,000 $ 10,000 $ 10,000
Jun-94 9,277 9,450 9,450
Jun-95 9,870 10,279 10,279
Jun-96 10,322 10,457 10,983
Jun-97 10,830 11,255 11,892
May-98 11,453 12,170 13,007
Until recently the Municipal Bond Fund's performance was compared to the Lehman
Brothers Municipal Bond Index. However, the Fund's performance is now also
being compared to the Lehman Brothers Mutual Fund Intermediate Index, which
better reflects the Fund's current focus. The Lehman Brothers Intermediate
Mutual Fund Index consists of the Lehman Brothers Municipal Bond Index from
10/31/88 through 10/31/95. Thereafter, the data is from the Lehman Brothers
Intermediate Mutual Fund Index, which corresponds with the inception of the
Index on 10/31/95. These indices are unmanaged and do not reflect the deduction
of fees associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Municipal Bond Fund reflects
the deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
31
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
MICHIGAN MUNICIPAL BOND FUND+
The year ended May 31, 1998, was a good one for municipal bond investors, and
for those invested in Michigan's municipal bonds in particular. During the
period, Moody's Rating Services upgraded the state's credit rating to AA1 which
gave the market a substantial boost. Moreover, among the securities benefitting
from qualified for this upgrade were school district bonds--and with some 22%
of its net assets invested in these securities, the Fund benefited handsomely.
Therefore, for the year ended May 31, 1998, the portfolio posted a total return
of 6.76% (Investor A shares without sales charge).
Looking ahead, we expect the Michigan municipal markets to continue to perform
strongly. Supply is building again, but, with the new higher rating, new issues
may be attractive to a wide range of investors. Therefore, we expect the
environment to remain relatively stable in the coming months and plan to make
no major changes in the allocation, credit quality or maturity structure of the
Fund's portfolio in the near-term. As of May 31, 1998, the average maturity of
the holdings in the Fund's portfolio was 7.24 years; the average credit quality
was a strong AA. No more than 5% of the Fund's assets were invested in any one
issue.*
- -------
+ The fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
* The composition of the Portfolio is subject to change.
32
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year 5 Years Inception
(07/02/90)
-----------------------------------------------
Investor A* 2.50% 4.35% 5.79%
-----------------------------------------------
Institutional 7.12% 5.45% 6.50%
-----------------------------------------------
* Reflects 4.00% Sales Charge
Average Annual Total Return
As of May 31, 1998
-----------------------------------------------
Since
1 Year Inception
(2/4/94)
-----------------------------------------------
Investor B** 1.04% 3.48%
-----------------------------------------------
** Reflects Applicable Contingent Deferred
Sales Charge of 5.00%
MICHIGAN MUNICIPAL BOND FUND
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Lehman Brothers
Mutual Fund Shearson 3-15
Intermediate Years Municipal
Investor A* Institutional Index Index
Jul-90 $ 9,597 $ 10,000 $ 10,000 $ 10,000
Jun-91 10,247 10,677 10,884 10,884
Jun-92 11,244 11,716 12,065 12,065
Jun-93 12,301 12,820 13,338 13,338
Jun-94 12,414 12,951 13,487 13,487
Jun-95 13,282 13,900 14,608 14,608
Jun-96 13,928 14,611 14,861 15,499
Jun-97 14,749 15,503 15,995 16,684
May-98 15,612 16,462 17,295 18,097
Value of $10,000 Investment
[LINE GRAPH APPEARS HERE]
Lehman Brothers
Mutual Fund Shearson 3-15
Intermediate Years Municipal
Investor B** Index Index
Feb-94 $ 10,000 $ 10,000 $ 10,000
Jun-94 9,251 9,566 9,566
Jun-95 9,848 10,405 10,405
Jun-96 10,368 10,585 11,040
Jun-97 10,902 11,393 11,884
May-98 11,590 12,319 12,891
Until recently the fund's performance was compared to the Shearson 3-15-Year
Municipal Index. However, the Fund's performance is now also being compared to
the Lehman Brothers Mutual Fund Intermediate Index, which we believe better
reflects the Fund's current focus. The Lehman Brothers Intermediate Mutual Fund
Index consists of Shearson 3-15-Year Municipal Index from 10/31/88 through
10/31/95. Thereafter, the data is from the Lehman Brothers Intermediate Mutual
Fund Index, which corresponds with the inception of the Index on 10/31/95.
These indices are unmanaged and do not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Michigan Municipal Bond Fund reflects the
deduction of fees for these value-added services. PAST PERFORMANCE IS NOT
PREDICTIVE OF FUTURE RESULTS. THE INVESTMENT RETURN AND NAV WILL FLUCTUATE, SO
THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
33
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
MONEY MARKET FUNDS
During the year ended May 31, 1998, the economy continued to grow, unemployment
hit record lows, and consumer confidence hit multi-decade highs. Traditionally,
this kind of news has sparked inflation--but this time, much to investors'
surprise, inflation failed to materialize, and interest rates drifted lower.
Moreover, as 1997 drew to a close and throughout the spring of 1998,
uncertainty in the Asian markets put further downward pressure on rates.
Therefore, interest rates traded within a relatively narrow range throughout
much of the year. And, looking ahead, barring an unforeseen event, we see
little on the horizon that might cause this environment to change significantly
in the very near-term. Inflationary pressures remain benign, and economic
growth is still strong. Consequently, in the months ahead, we expect to
maintain the current maturity structure of our Funds; however, should
opportunities arise to enhance yield, we will make every effort to seize them.
. THE PRIME OBLIGATIONS FUND: As of May 31, 1998, approximately 80.16% 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 57 days.*
. THE U.S. GOVERNMENT OBLIGATIONS FUND: As of May 31, 1998, the Fund's assets
were invested in overnight securities, as well as short-term agency and
Treasury securities. The average maturity of the portfolio was approximately 41
days.*
. THE TREASURY FUND: This Fund was primarily invested in repurchase agreements
as of May 31, 1998, and the average maturity of the portfolio was 27 days.
. THE TAX-FREE FUND: As of May 31, 1998, the average maturity of assets in the
Fund's portfolio was approximately 42 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 Portfolio is 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.
THIS MATERIAL IS AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS ONLY
WHEN PRECEDED OR ACCOMPANIED BY A PROSPECTUS. THE PARKSTONE MUTUAL FUNDS ARE
A FAMILY OF MUTUAL FUNDS THAT ARE DISTRIBUTED BY BISYS FUND SERVICES. FOR
MORE COMPLETE INFORMATION ON ANY OF THE PARKSTONE MUTUAL FUNDS, INCLUDING
FEES, EXPENSES AND SALES CHARGES, PLEASE CALL 1-800-451-8377 FOR A FREE
PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE INVESTING OR SENDING
MONEY.
34
<PAGE>
- --------------------------------------------------------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
To the Shareholders and Trustees of the Parkstone Group of Funds
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, and the related statements of
operations, cash flows, and changes in net assets and financial highlights
present fairly, in all material respects, the financial position of the
Parkstone Group of Funds (comprising, respectively, the Prime Obligations Fund,
U. S. Government Obligations Fund, Tax-Free Fund, Treasury Fund, Small
Capitalization Fund, Mid Capitalization Fund, Large Capitalization Fund,
International Discovery Fund, Limited Maturity Bond Fund, Intermediate
Government Obligations Fund, U. S. Government Income Fund, Bond Fund, Municipal
Bond Fund, Michigan Municipal Bond Fund, Conservative Allocation Fund, Balanced
Allocation Fund, Aggressive Allocation Fund, and Equity Income Fund) at May 31,
1998, the results of each of their operations for the eleven months ended May
31, 1998 and for the year ended June 30, 1997, the cash flows of the Mid
Capitalization Fund, Large Capitalization Fund, Limited Maturity Bond Fund,
Intermediate Government Obligations Fund, U. S. Government Income Fund, Bond
Fund, Conservative Allocation Fund, Balanced Allocation Fund, Aggressive
Allocation Fund, and Equity Income Fund for the eleven months ended May 31,
1998, the changes in each of their net assets for the eleven months ended May
31, 1998 and for each of the two years in the period ended June 30, 1997, and
their financial highlights for the eleven months ended May 31, 1998 and for
each of the five years in the period ended June 30, 1997, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Parkstone Group of Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at May 31, 1998 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Columbus, OH
July 20, 1998
35
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS May 31, 1998
<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 (Amortized
cost $786,634; $202,968;
$158,607 and $87,699,
respectively).................. $786,634 $202,968 $158,607 $ 87,699
Repurchase agreements, at cost.. 126,073 152,562 -- 474,666
-------- -------- -------- --------
TOTAL INVESTMENTS............... 912,707 355,530 158,607 562,365
Cash............................ 8 8 -- 1
Interest and dividends
receivable..................... 518 639 1,072 1,939
Receivable for capital shares
issued......................... 30 -- 1 --
Prepaid expenses and other
assets......................... 4 2 1 2
-------- -------- -------- --------
TOTAL ASSETS.................... 913,267 356,179 159,681 564,307
-------- -------- -------- --------
LIABILITIES:
Dividends payable............... 3,822 1,496 430 2,403
Payable for capital shares
redeemed....................... 6 -- 26 --
Accrued expenses and other
payables:
Investment advisory fees....... 30 12 5 18
Administration fees............ 74 28 13 25
12b-1 fees (Investor A)........ 19 15 5 21
Accounting fees................ 8 3 2 4
Transfer agent fees............ 2 7 9 1
Legal fees..................... 5 4 2 5
Audit fees..................... 14 5 3 6
Trustees' fees and expenses.... 1 -- -- 1
Custodian fees................. 7 3 1 4
Other.......................... 11 12 17 27
-------- -------- -------- --------
TOTAL LIABILITIES............... 3,999 1,585 513 2,515
-------- -------- -------- --------
NET ASSETS:
Paid-in capital................. 909,268 354,595 159,169 561,782
Accumulated undistributed net
realized gains (losses) on
investment transactions........ -- (1) (1) 10
-------- -------- -------- --------
NET ASSETS...................... $909,268 $354,594 $159,168 $561,792
======== ======== ======== ========
Net Assets
Investor A..................... $217,934 $169,210 $ 55,106 $240,208
Investor B..................... 387 -- -- --
Institutional.................. 690,947 185,384 104,062 321,584
-------- -------- -------- --------
Total........................ $909,268 $354,594 $159,168 $561,792
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A..................... 217,937 169,193 55,106 240,206
Investor B..................... 386 -- -- --
Institutional.................. 690,947 185,369 104,059 321,575
-------- -------- -------- --------
Total........................ 909,270 354,562 159,165 561,781
======== ======== ======== ========
Net Asset Value--offering and
redemption price per share
Investor A..................... $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Investor B..................... $1.00 -- -- --
===== ===== ===== =====
Institutional.................. $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
</TABLE>
See notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS May 31, 1998
<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 $554,399;
$575,996; $324,314 and
$358,739,
respectively).......... $701,281 $771,014 $473,982 $484,364
Repurchase agreements,
at cost................ 23,533 62,715 29,152 --
-------- -------- -------- --------
TOTAL INVESTMENTS....... 724,814 833,729 503,134 484,364
Cash.................... -- 1 -- --
Interest and dividends
receivable............. 122 177 227 880
Foreign currency (Cost
$0, $0, $0 and $63,
respectively).......... -- -- -- 63
Receivable from brokers
for investments sold... 26,953 6,394 -- --
Receivable for capital
shares issued.......... 102 69 23 26
Reclaims receivable..... -- -- -- 236
Prepaid expenses and
other assets........... 3 2 1 2
-------- -------- -------- --------
TOTAL ASSETS............ 751,994 840,372 503,385 485,571
-------- -------- -------- --------
LIABILITIES:
Payable for return of
collateral received for
securities on loan..... -- 205,530 112,934 --
Payable to brokers for
investments purchased.. 4,026 -- -- --
Payable for capital
shares redeemed........ 489 343 75 134
Accrued expenses and
other payables:
Investment advisory
fees.................. 61 52 26 46
Administration fees.... 67 56 35 43
12b-1 fees (Investor
A).................... 35 19 5 9
12b-1 fees (Investor
B).................... 28 16 6 8
12b-1 fees (Investor
C).................... 10 1 -- 1
Accounting fees........ 8 7 4 7
Transfer agent fees.... 16 1 1 14
Legal fees............. 8 7 1 3
Audit fees............. 13 11 4 7
Trustees' fees and
expenses.............. 1 1 -- 1
Custodian fees......... 6 5 2 144
Other.................. 97 52 6 98
-------- -------- -------- --------
TOTAL LIABILITIES....... 4,865 206,101 113,099 515
-------- -------- -------- --------
NET ASSETS:
Paid-in capital......... 507,441 394,395 242,396 345,284
Accumulated
undistributed
(distributions in
excess) of net
investment income...... -- -- -- (679)
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 146,882 195,018 149,668 125,613
Accumulated
undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... 92,806 44,858 (1,778) 14,838
-------- -------- -------- --------
NET ASSETS.............. $747,129 $634,271 $390,286 $485,056
======== ======== ======== ========
Net Assets
Investor A............. $163,178 $ 90,183 $ 21,628 $ 43,268
Investor B............. 41,399 23,780 10,169 12,840
Investor C............. 14,747 2,228 268 1,026
Institutional.......... 527,805 518,080 358,221 427,922
-------- -------- -------- --------
Total................ $747,129 $634,271 $390,286 $485,056
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A............. 6,345 6,020 1,336 2,621
Investor B............. 1,655 1,675 637 803
Investor C............. 588 155 17 63
Institutional.......... 20,185 34,267 22,017 25,620
-------- -------- -------- --------
Total................ 28,773 42,117 24,007 29,107
======== ======== ======== ========
Net Asset Value--
offering and redemption
price per share
Investor A............. $25.72 $14.98 $16.19 $16.51
====== ====== ====== ======
Investor B*............ $25.02 $14.20 $15.95 $15.98
====== ====== ====== ======
Investor C*............ $25.08 $14.36 $15.84 $16.36
====== ====== ====== ======
Institutional.......... $26.15 $15.12 $16.27 $16.70
====== ====== ====== ======
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)........... $26.93 $15.69 $16.95 $17.29
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
37
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
THE PARKSTONE GROUP OF FUNDS May 31, 1998
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
INTERMEDIATE U.S.
LIMITED GOVERNMENT GOVERNMENT
MATURITY BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
------------- ------------ ---------- --------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$207,713; $179,234;
$240,352 and $597,191,
respectively).............. $207,864 $179,696 $242,919 $602,327
Repurchase agreements, at
cost....................... 32,070 41,266 25,531 60,618
-------- -------- -------- --------
TOTAL INVESTMENTS........... 239,934 220,962 268,450 662,945
Cash........................ -- -- 1 1
Interest and dividends
receivable................. 2,779 2,561 2,369 6,430
Receivable from brokers for
investments sold........... -- 43 682 --
Receivable for capital
shares issued.............. 179 -- 42 3
Prepaid expenses and other
assets..................... 1 1 1 2
-------- -------- -------- --------
TOTAL ASSETS................ 242,893 223,567 271,545 669,381
-------- -------- -------- --------
LIABILITIES:
Payable for return of
collateral received for
securities on loan......... 46,982 35,420 30,904 130,272
Payable to brokers for
investments purchased...... -- -- -- 33,159
Payable for capital shares
redeemed................... 30 69 185 139
Accrued expenses and other
payables:
Investment advisory fees... 9 11 9 29
Administration fees........ 13 12 16 33
12b-1 fees (Investor A).... 9 3 12 4
12b-1 fees (Investor B).... 1 1 15 4
12b-1 fees (Investor C).... 1 -- -- --
Accounting fees............ 2 -- 2 8
Transfer agent fees........ 1 5 2 3
Legal fees................. 1 1 1 3
Audit fees................. 4 3 4 7
Trustees' fees and
expenses.................. -- 1 1 1
Custodian fees............. 1 1 1 4
Other...................... 6 11 14 30
-------- -------- -------- --------
TOTAL LIABILITIES........... 47,060 35,538 31,166 163,696
-------- -------- -------- --------
NET ASSETS:
Paid-in capital............. 205,377 199,405 245,353 503,811
Accumulated undistributed
(distributions in excess)
of net investment income... 1 -- -- 206
Net unrealized appreciation
(depreciation) from
investments ............... 151 462 2,567 5,136
Accumulated undistributed
net realized gains (losses)
from investment
transactions .............. (9,696) (11,838) (7,541) (3,468)
-------- -------- -------- --------
NET ASSETS.................. $195,833 $188,029 $240,379 $505,685
======== ======== ======== ========
Net Assets
Investor A................. $ 41,571 $ 14,461 $ 54,710 $ 16,669
Investor B................. 1,553 1,852 23,739 6,423
Investor C................. 2,199 235 363 595
Institutional.............. 150,510 171,481 161,567 481,998
-------- -------- -------- --------
Total.................... $195,833 $188,029 $240,379 $505,685
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A................. 4,375 1,464 5,903 1,669
Investor B................. 163 188 2,568 642
Investor C................. 237 24 39 60
Institutional.............. 15,836 17,365 17,432 48,012
-------- -------- -------- --------
Total.................... 20,611 19,041 25,942 50,383
======== ======== ======== ========
Net Asset Value--offering
and redemption price per
share
Investor A................. $9.50 $ 9.88 $9.27 $ 9.99
===== ====== ===== ======
Investor B*................ $9.50 $ 9.85 $9.24 $10.00
===== ====== ===== ======
Investor C*................ $9.28 $ 9.68 $9.21 $ 9.96
===== ====== ===== ======
Institutional.............. $9.50 $ 9.88 $9.27 $10.04
===== ====== ===== ======
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 $10.29 $9.66 $10.41
===== ====== ===== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
(Amounts in Thousands, except Per Share Amounts)
<TABLE>
<CAPTION>
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value (Cost
$129,304; $234,467; $15,331 and
$267,477, respectively)........... $132,182 $247,241 $16,358 $305,833
Repurchase agreements, at cost..... -- -- 2,943 34,223
-------- -------- ------- --------
TOTAL INVESTMENTS.................. 132,182 247,241 19,301 340,056
Cash............................... -- -- 1 1
Interest and dividends receivable.. 2,204 2,911 167 1,968
Foreign currency (Cost $0, $0, $0
and $4, respectively)............. -- -- -- 4
Receivable from brokers for
investments sold.................. -- -- 18 431
Reclaims receivable................ -- -- -- 14
Prepaid expenses and other assets.. -- 1 -- 1
-------- -------- ------- --------
TOTAL ASSETS....................... 134,386 250,153 19,487 342,475
-------- -------- ------- --------
LIABILITIES:
Payable for return of collateral
received for securities on loan... -- -- 2,429 49,587
Payable to brokers for investments
purchased......................... -- 942 -- 1,944
Payable for capital shares
redeemed.......................... 252 376 -- 6
Accrued expenses and other
payables:
Investment advisory fees.......... 6 11 1 18
Administration fees............... 6 11 1 26
12b-1 fees (Investor A)........... 2 8 -- 4
12b-1 fees (Investor B)........... -- 2 -- 5
12b-1 fees (Investor C)........... -- -- -- 1
Accounting fees................... 2 2 2 3
Transfer agent fees............... 1 3 3 3
Legal fees........................ 2 1 2 3
Audit fees........................ 6 7 4 4
Custodian fees.................... 7 4 1 5
Other............................. 38 21 13 14
-------- -------- ------- --------
TOTAL LIABILITIES.................. 322 1,388 2,456 51,623
-------- -------- ------- --------
NET ASSETS:
Paid-in capital.................... 130,016 235,279 15,785 247,994
Accumulated undistributed
(distributions in excess) of net
investment income................. (2) 1 36 316
Net unrealized appreciation
(depreciation) from investments
and translation of assets and
liabilities in foreign currencies. 2,878 12,774 1,027 38,356
Accumulated undistributed net
realized gains (losses) from
investment and foreign currency
transactions...................... 1,172 711 183 4,186
-------- -------- ------- --------
NET ASSETS......................... $134,064 $248,765 $17,031 $290,852
======== ======== ======= ========
Net Assets
Investor A........................ $ 9,502 $ 38,536 $ -- $ 19,404
Investor B........................ 706 3,983 -- 7,988
Investor C........................ -- -- -- 927
Institutional..................... 123,856 206,246 17,031 262,533
-------- -------- ------- --------
Total........................... $134,064 $248,765 $17,031 $290,852
======== ======== ======= ========
Outstanding units of beneficial
interest (shares)
Investor A........................ 903 3,485 -- 1,404
Investor B........................ 67 360 -- 578
Investor C........................ -- -- -- 68
Institutional..................... 11,766 18,650 1,537 19,018
-------- -------- ------- --------
Total........................... 12,736 22,495 1,537 21,068
======== ======== ======= ========
Net Asset Value--offering and
redemption price per share
Investor A........................ $10.53 $11.06 -- $13.82
====== ====== ====== ======
Investor B*....................... $10.50 $11.07 -- $13.81
====== ====== ====== ======
Investor C*....................... -- -- -- $13.72
====== ====== ====== ======
Institutional..................... $10.53 $11.06 $11.08 $13.80
====== ====== ====== ======
Maximum Sales Charge (Investor A).. 4.00% 4.00% -- 4.50%
====== ====== ====== ======
Maximum Offering Price
(100%/(100%--Maximum Sales Charge)
of net asset value adjusted to
nearest cent) per share (Investor
A)................................ $10.97 $11.52 -- $14.47
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements
39
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group Of Funds May 31, 1998
<TABLE>
<CAPTION>
(Amounts in Thousands,
except
Per Share Amounts)
AGGRESSIVE EQUITY
ALLOCATION INCOME
FUND FUND
---------- --------
<S> <C> <C>
ASSETS:
Investments, at value (Costs $29,601 and
$334,686, respectively)......................... $34,811 $482,002
Repurchase agreements, at cost................... 6,115 35,804
------- --------
TOTAL INVESTMENTS................................ 40,926 517,806
Cash............................................. 1 1
Interest and dividends receivable................ 116 1,455
Foreign currency (Cost $56 and $0, respectively). 56 --
Receivable from brokers for investments sold..... 117 --
Receivable for capital shares issued............. -- 79
Reclaims receivable.............................. 5 --
Prepaid expenses and other assets................ -- 1
------- --------
TOTAL ASSETS..................................... 41,221 519,342
------- --------
LIABILITIES:
Payable for return of collateral received for
securities on loan.............................. 6,923 104,142
Payable to brokers for investments purchased..... 444 --
Payable for capital shares redeemed.............. -- 261
Accrued expenses and other payables:
Investment advisory fees........................ 2 34
Administration fees............................. 3 37
12b-1 fees (Investor A)......................... -- 23
12b-1 fees (Investor B)......................... -- 18
12b-1 fees (Investor C)......................... -- 1
Accounting fees................................. 2 5
Transfer agent fees............................. 5 8
Legal fees...................................... -- 4
Audit fees...................................... 5 7
Custodian fees.................................. 17 3
Other........................................... 4 40
------- --------
TOTAL LIABILITIES................................ 7,405 104,583
------- --------
NET ASSETS:
Paid-in capital.................................. 28,126 246,713
Accumulated undistributed (distributions in
excess) of net investment income................ (1) 776
Net unrealized appreciation (depreciation) from
investments and translation of assets and
liabilities in foreign currencies............... 5,210 147,316
Accumulated undistributed net realized gains
(losses) from investment and foreign currency
transactions.................................... 481 19,954
------- --------
NET ASSETS....................................... $33,816 $414,759
======= ========
Net Assets
Investor A...................................... $ -- $104,503
Investor B...................................... -- 27,767
Investor C...................................... -- 1,094
Institutional................................... 33,816 281,395
------- --------
Total......................................... $33,816 $414,759
======= ========
Outstanding units of beneficial interest (shares)
Investor A...................................... -- 5,566
Investor B...................................... -- 1,486
Investor C...................................... -- 58
Institutional................................... 2,878 15,058
------- --------
Total......................................... 2,878 22,168
======= ========
Net Asset Value--offering and redemption price
per share
Investor A...................................... -- $18.78
====== ======
Investor B*..................................... -- $18.68
====== ======
Investor C*..................................... -- $18.79
====== ======
Institutional................................... $11.75 $18.69
====== ======
Maximum Sales Charge (Investor A)................ -- 4.50%
====== ======
Maximum Offering Price (100%/(100%--Maximum Sales
Charge) of net asset value adjusted to nearest
cent) per share (Investor A).................... -- $19.66
====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
U.S. GOVERNMENT
PRIME OBLIGATIONS FUND OBLIGATIONS FUND
------------------------ ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $45,725 $47,642 $19,430 $23,220
Dividend income.............. -- -- -- --
------- ------- ------- -------
TOTAL INCOME................. 45,725 47,642 19,430 23,220
------- ------- ------- -------
EXPENSES:
Investment advisory fees..... 3,213 3,442 1,390 1,712
Administration fees.......... 1,606 1,718 695 854
12b-1 fees (Investor A)...... 459 439 443 496
12b-1 fees (Investor B)...... 1 -- -- --
Accounting fees.............. 148 151 66 81
Custodian fees............... 71 73 32 37
Legal fees................... 22 17 14 5
Audit fees................... 18 26 9 13
Trustees' fees and expenses.. 21 8 5 4
Transfer agent fees.......... 149 59 81 37
Registration and filing fees. 48 36 8 31
Printing costs............... 152 65 53 34
Other........................ -- 20 -- 10
------- ------- ------- -------
TOTAL EXPENSES............... 5,908 6,054 2,796 3,314
------- ------- ------- -------
Expenses voluntarily reduced. (436) (432) (335) (381)
------- ------- ------- -------
NET EXPENSES................. 5,472 5,622 2,461 2,933
------- ------- ------- -------
Net Investment Income........ 40,253 42,020 16,969 20,287
------- ------- ------- -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment transac-
tions....................... -- 6 7 (3)
------- ------- ------- -------
Net realized gains (losses)
from investments............ -- 6 7 (3)
------- ------- ------- -------
Change in net assets result-
ing from operations......... $40,253 $42,026 $16,976 $20,284
======= ======= ======= =======
</TABLE>
See notes to financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
(AMOUNTS IN THOUSANDS)
<TABLE>
<CAPTION>
TAX-FREE FUND TREASURY FUND
------------------------ ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $5,569 $5,697 $26,525 $21,826
Dividend income.............. 146 150 -- --
------ ------ ------- -------
TOTAL INCOME................. 5,715 5,847 26,525 21,826
------ ------ ------- -------
EXPENSES:
Investment advisory fees..... 632 652 1,905 1,619
Administration fees.......... 316 325 953 808
12b-1 fees (Investor A)...... 129 129 454 323
Accounting fees.............. 38 38 87 76
Custodian fees............... 13 14 38 36
Legal fees................... 4 10 20 3
Audit fees................... 3 18 14 6
Trustees' fees and expenses.. 3 2 8 4
Transfer agent fees.......... 46 35 71 39
Registration and filing fees. 2 28 3 46
Printing costs............... 14 15 73 23
Other........................ -- 4 -- 44
------ ------ ------- -------
TOTAL EXPENSES............... 1,200 1,270 3,626 3,027
------ ------ ------- -------
Expenses voluntarily reduced. (109) (109) (749) (597)
------ ------ ------- -------
NET EXPENSES................. 1,091 1,161 2,877 2,430
------ ------ ------- -------
Net Investment Income........ 4,624 4,686 23,648 19,396
------ ------ ------- -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains (losses)
from investment transac-
tions....................... (1) (28) 31 46
------ ------ ------- -------
Net realized gains (losses)
from investments............ (1) (28) 31 46
------ ------ ------- -------
Change in net assets result-
ing from operations......... $4,623 $4,658 $23,679 $19,442
====== ====== ======= =======
</TABLE>
See notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL CAPITALIZATION FUND MID CAPITALIZATION FUND
----------------------------- ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
-------------- ------------ ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 1,999 $ 2,453 $ 1,392 $ 1,424
Dividend income......... 537 171 1,337 1,786
Securities lending in-
come................... 349 -- 567 56
Foreign withholding tax
expense................ -- -- (17) (14)
------------- ------------ -------- --------
TOTAL INCOME............ 2,885 2,624 3,279 3,252
------------- ------------ -------- --------
EXPENSES:
Investment advisory
fees................... 7,988 7,050 6,104 6,531
Administration fees..... 1,598 1,410 1,221 1,306
12b-1 fees (Investor A). 451 410 205 189
12b-1 fees (Investor B). 330 361 164 190
12b-1 fees (Investor C). 109 98 15 15
Accounting fees......... 199 180 157 168
Custodian fees.......... 63 65 43 62
Legal fees.............. 27 13 13 17
Audit fees.............. 18 22 11 25
Trustees' fees and ex-
penses................. 14 7 10 7
Transfer agent fees..... 603 381 289 258
Registration and filing
fees................... 93 72 35 57
Printing costs.......... 145 80 72 81
Other................... 148 17 57 20
------------- ------------ -------- --------
TOTAL EXPENSES.......... 11,786 10,166 8,396 8,926
------------- ------------ -------- --------
Net Investment Income
(Loss)................. (8,901) (7,542) (5,117) (5,674)
------------- ------------ -------- --------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment and
transactions........... 124,813 47,197 108,493 90,985
Net change in unrealized
appreciation
(depreciation) from
investments............ (119,617) (53,844) 3,191 (46,690)
------------- ------------ -------- --------
Net realized/unrealized
gains (losses) from
investments............ 5,196 (6,647) 111,684 44,295
------------- ------------ -------- --------
Change in net assets
resulting from
operations............. $ (3,705) $ (14,189) $106,567 $ 38,621
============= ============ ======== ========
</TABLE>
See notes to financial statements.
43
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
LARGE CAPITALIZATION FUND INTERNATIONAL DISCOVERY FUND
----------------------------- ---------------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
-------------- ------------ --------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 628 $ 972 $ -- $ --
Dividend income......... 2,290 3,474 6,048 6,718
Securities lending
income................. 122 -- -- --
Foreign withholding tax
expense................ -- -- (367) (401)
------------ ------------ -------------- --------------
TOTAL INCOME............ 3,040 4,446 5,681 6,317
------------ ------------ -------------- --------------
EXPENSES:
Investment advisory
fees................... 2,682 2,725 4,979 4,981
Administration fees..... 670 681 865 858
12b-1 fees (Investor A). 41 14 105 107
12b-1 fees (Investor B). 47 21 89 112
12b-1 fees (Investor C). 1 -- 6 7
Accounting fees......... 95 98 182 181
Custodian fees.......... 25 32 372 263
Legal fees.............. 7 11 13 8
Audit fees.............. 9 9 10 13
Trustees' fees and
expenses............... 5 3 6 4
Transfer agent fees..... 108 68 252 246
Registration and filing
fees................... 37 114 26 57
Printing costs.......... 47 42 62 47
Other................... 17 6 32 10
------------ ------------ -------------- --------------
TOTAL EXPENSES.......... 3,791 3,824 6,999 6,894
------------ ------------ -------------- --------------
Net Investment Income
(Loss)................. (751) 622 (1,318) (577)
------------ ------------ -------------- --------------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment and foreign
currency transactions.. 23,283 16,112 27,623 12,746
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 63,562 75,519 (1,902) 55,463
------------ ------------ -------------- --------------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. 86,845 91,631 25,721 68,209
------------ ------------ -------------- --------------
Change in net assets
resulting from
operations............. $ 86,094 $ 92,253 $ 24,403 $ 67,632
============ ============ ============== ==============
</TABLE>
See notes to financial statements.
44
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE GOVERNMENT
LIMITED MATURITY BOND FUND OBLIGATIONS FUND
------------------------------- ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
-------------- ------------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 10,953 $ 10,560 $11,922 $15,186
Securities lending
income................. 52 16 42 44
------------- ------------- ------- -------
TOTAL INCOME............ 11,005 10,576 11,964 15,230
------------- ------------- ------- -------
EXPENSES:
Investment advisory
fees................... 1,264 1,135 1,334 1,692
Administration fees..... 342 307 361 458
12b-1 fees (Investor A). 81 50 37 52
12b-1 fees (Investor B). 10 16 14 20
12b-1 fees (Investor C). 10 -- 2 1
Accounting fees......... 61 58 69 73
Custodian fees.......... 14 12 15 21
Legal fees.............. 4 3 3 6
Audit fees.............. 3 10 3 11
Trustees' fees and
expenses............... 3 1 3 2
Transfer agent fees..... 69 93 86 96
Registration and filing
fees................... 19 44 4 64
Printing costs.......... 28 14 25 24
Other................... 6 3 4 6
------------- ------------- ------- -------
TOTAL EXPENSES.......... 1,914 1,746 1,960 2,526
------------- ------------- ------- -------
Expenses voluntarily
reduced................ (410) (366) (162) (201)
------------- ------------- ------- -------
NET EXPENSES............ 1,504 1,380 1,798 2,325
------------- ------------- ------- -------
Net Investment Income
(Loss)................. 9,501 9,196 10,166 12,905
------------- ------------- ------- -------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment
transactions........... (546) (256) 2,682 1,200
Net change in unrealized
appreciation
(depreciation) from
investments ........... 860 467 675 (461)
------------- ------------- ------- -------
Net realized/unrealized
gains (losses) from
investments............ 314 211 3,357 739
------------- ------------- ------- -------
Change in net assets
resulting from
operations............. $ 9,815 $ 9,407 $13,523 $13,644
============= ============= ======= =======
</TABLE>
See notes to financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. GOVERNMENT
INCOME FUND BOND FUND
------------------------ ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $18,248 $18,582 $32,044 $37,445
Dividend income.............. -- -- 1,195 965
Securities lending income.... 28 27 384 147
------- ------- ------- -------
TOTAL INCOME................. 18,276 18,609 33,623 38,557
------- ------- ------- -------
EXPENSES:
Investment advisory fees..... 1,649 1,587 3,554 4,027
Administration fees.......... 446 429 961 1,089
12b-1 fees (Investor A)...... 135 139 44 51
12b-1 fees (Investor B)...... 169 221 44 52
12b-1 fees (Investor C)...... 1 1 4 3
Accounting fees.............. 107 98 136 152
Custodian fees............... 17 19 41 50
Legal fees................... 6 4 11 12
Audit fees................... 4 10 10 18
Trustees' fees and expenses.. 3 2 9 5
Transfer agent fees.......... 138 146 124 127
Registration and filing fees. 22 51 23 54
Printing costs............... 47 23 79 56
Other........................ 56 5 15 14
------- ------- ------- -------
TOTAL EXPENSES............... 2,800 2,735 5,055 5,710
------- ------- ------- -------
Expenses voluntarily reduced. (758) (727) (432) (478)
------- ------- ------- -------
NET EXPENSES................. 2,042 2,008 4,623 5,232
------- ------- ------- -------
Net Investment Income (Loss). 16,234 16,601 29,000 33,325
------- ------- ------- -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses)
from investment
transactions................ (115) (2,156) 14,967 5,014
Net change in unrealized
appreciation (depreciation)
from investments............ 2,119 (99) 2,035 4,705
------- ------- ------- -------
Net realized/unrealized gains
(losses) from investments... 2,004 (2,255) 17,002 9,719
------- ------- ------- -------
Change in net assets
resulting from operations... $18,238 $14,346 $46,002 $43,044
======= ======= ======= =======
</TABLE>
See notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN MUNICIPAL
MUNICIPAL BOND FUND BOND FUND
------------------------ ------------------------
ELEVEN MONTHS YEAR ENDED ELEVEN MONTHS YEAR ENDED
ENDED MAY JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997 31, 1998 1997
------------- ---------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.............. $5,970 $7,472 $11,688 $12,722
Dividend income.............. 40 12 38 41
------ ------ ------- -------
TOTAL INCOME................. 6,010 7,484 11,726 12,763
------ ------ ------- -------
EXPENSES:
Investment advisory fees..... 955 1,059 1,705 1,715
Administration fees.......... 258 286 461 464
12b-1 fees (Investor A)...... 23 22 92 95
12b-1 fees (Investor B)...... 6 9 26 36
Accounting fees.............. 59 62 90 88
Custodian fees............... 11 13 18 20
Legal fees................... 3 3 6 5
Audit fees................... 3 10 5 10
Trustees' fees and expenses.. 2 1 3 2
Transfer agent fees.......... 45 59 66 86
Registration and filing fees. 18 58 4 17
Printing costs............... 15 17 26 27
Other........................ 2 3 5 6
------ ------ ------- -------
TOTAL EXPENSES............... 1,400 1,602 2,507 2,571
------ ------ ------- -------
Expenses voluntarily reduced. (374) (413) (668) (670)
------ ------ ------- -------
NET EXPENSES................. 1,026 1,189 1,839 1,901
------ ------ ------- -------
Net Investment Income (Loss). 4,984 6,295 9,887 10,862
------ ------ ------- -------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS
AND FOREIGN CURRENCIES:
Net realized gains (losses)
from investment
transactions................ 2,879 798 1,120 370
Net change in unrealized
appreciation (depreciation)
from investments............ (21) 950 3,953 2,487
------ ------ ------- -------
Net realized/unrealized gains
(losses) from investments... 2,858 1,748 5,073 2,857
------ ------ ------- -------
Change in net assets
resulting from operations... $7,842 $8,043 $14,960 $13,719
====== ====== ======= =======
</TABLE>
See notes to financial statements.
47
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
CONSERVATIVE ALLOCATION FUND BALANCED ALLOCATION FUND
------------------------------ ------------------------
ELEVEN MONTHS DECEMBER 30, ELEVEN MONTHS YEAR ENDED
ENDED MAY 1996 TO JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997(A) 31, 1998 1997
------------- ---------------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 660 $203 $ 8,706 $ 6,732
Dividend income......... 20 9 845 839
Securities lending in-
come................... 3 -- 110 40
Foreign withholding tax
expense................ -- -- (33) (24)
------ ---- ------- -------
TOTAL INCOME............ 683 212 9,628 7,587
------ ---- ------- -------
EXPENSES:
Investment advisory
fees................... 143 44 2,600 1,947
Administration fees..... 29 9 520 390
12b-1 fees (Investor A). -- -- 44 45
12b-1 fees (Investor B). -- -- 50 52
12b-1 fees (Investor C). -- -- 6 5
Accounting fees......... 7 7 103 82
Custodian fees.......... 1 -- 61 34
Legal fees.............. -- -- 10 2
Audit fees.............. 4 7 6 10
Trustees' fees and ex-
penses................. -- -- 5 1
Transfer agent fees..... 8 17 135 101
Registration and filing
fees................... 3 -- 54 47
Printing costs.......... 1 1 59 16
Other................... -- 1 21 3
------ ---- ------- -------
TOTAL EXPENSES.......... 196 86 3,674 2,735
------ ---- ------- -------
Expenses voluntarily re-
duced.................. (43) (13) (650) (485)
------ ---- ------- -------
NET EXPENSES............ 153 73 3,024 2,250
------ ---- ------- -------
Net Investment Income
(Loss)................. 530 139 6,604 5,337
------ ---- ------- -------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment and foreign
currency transactions.. 387 (102) 8,982 12,043
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies .... 692 335 16,238 5,097
------ ---- ------- -------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies ............ 1,079 233 25,220 17,140
------ ---- ------- -------
Change in net assets re-
sulting from opera-
tions.................. $1,609 $372 $31,824 $22,477
====== ==== ======= =======
</TABLE>
(a) Period from commencement of operations.
See notes to financial statements.
48
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE ALLOCATION FUND EQUITY INCOME FUND
------------------------------ ------------------------
ELEVEN MONTHS DECEMBER 30, ELEVEN MONTHS YEAR ENDED
ENDED MAY 1996 TO JUNE 30, ENDED MAY JUNE 30,
31, 1998 1997(A) 31, 1998 1997
------------- ---------------- ------------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income......... $ 711 $ 331 $ 2,858 $ 3,665
Dividend income......... 160 85 8,767 10,326
Securities lending
income................. 13 -- 89 --
Foreign withholding tax
expense................ (6) (4) (3) (67)
------ ------ ------- -------
TOTAL INCOME............ 878 412 11,711 13,924
------ ------ ------- -------
EXPENSES:
Investment advisory
fees................... 357 137 3,930 4,336
Administration fees..... 71 27 786 867
12b-1 fees (Investor A). -- -- 239 226
12b-1 fees (Investor B). -- -- 172 161
12b-1 fees (Investor C). -- -- 6 4
Accounting fees......... 33 9 109 120
Custodian fees.......... 37 1 30 42
Legal fees.............. 1 -- 11 9
Audit fees.............. 1 7 10 15
Trustees' fees and
expenses............... 1 -- 7 5
Transfer agent fees..... 3 16 303 227
Registration and filing
fees................... 10 -- -- 70
Printing costs.......... 5 2 56 52
Other................... 1 1 58 11
------ ------ ------- -------
Total Expenses.......... 520 200 5,717 6,145
------ ------ ------- -------
Expenses voluntarily
reduced................ (54) (20) -- --
------ ------ ------- -------
NET EXPENSES............ 466 180 5,717 6,145
------ ------ ------- -------
Net Investment Income
(Loss)................. 412 232 5,994 7,779
------ ------ ------- -------
REALIZED/UNREALIZED
GAINS (LOSSES) FROM
INVESTMENTS AND FOREIGN
CURRENCIES:
Net realized gains
(losses) from
investment and foreign
currency transactions.. 1,126 (648) 48,190 49,802
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 2,816 2,394 13,536 38,267
------ ------ ------- -------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. 3,942 1,746 61,726 88,069
------ ------ ------- -------
Change in net assets
resulting from
operations............. $4,354 $1,978 $67,720 $95,848
====== ====== ======= =======
</TABLE>
(a) Period from commencement of operations.
See notes to financial statements.
49
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. GOVERNMENT
PRIME OBLIGATIONS FUND OBLIGATIONS FUND
-------------------------------------- --------------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- ----------- ----------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income
(loss)................ $ 40,253 $ 42,020 $ 39,546 $ 16,969 $ 20,287 $ 20,233
Net realized gains
(losses) from
investment
transactions.......... -- 6 (6) 7 (3) --
----------- ----------- ----------- --------- ----------- -----------
Change in net assets
resulting from
operations............. 40,253 42,026 39,540 16,976 20,284 20,233
----------- ----------- ----------- --------- ----------- -----------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (9,052) (8,431) (6,950) (8,537) (9,313) (9,106)
In excess of net
realized gains from
investment
transactions.......... -- -- (1) -- -- --
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS(A):
From net investment
income................ (6) -- -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (31,193) (33,589) (32,595) (8,396) (10,974) (11,126)
In excess of net
realized gains from
investment
transactions.......... -- -- (4) -- -- --
----------- ----------- ----------- --------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (40,251) (42,020) (39,550) (16,933) (20,287) (20,232)
----------- ----------- ----------- --------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 2,013,196 1,684,473 1,471,595 878,515 1,128,455 1,091,720
Dividends reinvested... 8,892 8,193 6,895 1,315 1,537 1,499
Cost of shares
redeemed.............. (1,985,192) (1,563,855) (1,483,872) (947,523) (1,102,140) (1,095,569)
----------- ----------- ----------- --------- ----------- -----------
Change in net assets
from capital
transactions........... 36,896 128,811 (5,382) (67,693) 27,852 (2,350)
----------- ----------- ----------- --------- ----------- -----------
Change in net assets.... 36,898 128,817 (5,392) (67,650) 27,849 (2,349)
NET ASSETS:
Beginning of period.... 872,370 743,553 748,945 422,244 394,395 396,744
----------- ----------- ----------- --------- ----------- -----------
End of period.......... $ 909,268 $ 872,370 $ 743,553 $ 354,594 $ 422,244 $ 394,395
=========== =========== =========== ========= =========== ===========
</TABLE>
- -------
(a) Fund commenced offering of Investor B shares on September 26, 1997.
See notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
TAX-FREE FUND TREASURY FUND
---------------------------------- --------------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- --------- --------- ------------- ----------- -----------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 4,624 $ 4,686 $ 4,632 $ 23,648 $ 19,396 $ 16,064
Net realized gains
(losses) from
investment
transactions.......... (1) (28) 30 31 46 11
--------- --------- --------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. 4,623 4,658 4,662 23,679 19,442 16,075
--------- --------- --------- ----------- ----------- -----------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (1,482) (1,450) (1,469) (8,907) (6,104) (5,795)
From net realized gains
from investment
transactions.......... -- -- (4) (20) -- (4)
In excess of net
realized gains from
investment
transactions.......... -- -- -- -- -- (11)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (3,142) (3,236) (3,163) (14,741) (13,292) (10,269)
From net realized gains
from investment
transactions.......... -- -- (8) (32) -- (7)
In excess of net
realized gains from
investment
transactions.......... -- -- -- -- -- (20)
--------- --------- --------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (4,624) (4,686) (4,644) (23,700) (19,396) (16,106)
--------- --------- --------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 442,581 407,038 376,346 1,682,410 1,723,599 2,002,575
Dividends reinvested... 914 824 820 554 627 493
Cost of shares
redeemed.............. (440,676) (399,351) (372,907) (1,621,534) (1,606,028) (1,918,521)
--------- --------- --------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... 2,819 8,511 4,259 61,430 118,198 84,547
--------- --------- --------- ----------- ----------- -----------
Change in net assets.... 2,818 8,483 4,277 61,409 118,244 84,516
<CAPTION>
NET ASSETS:
<S> <C> <C> <C> <C> <C> <C>
Beginning of period.... 156,350 147,867 143,590 500,383 382,139 297,623
--------- --------- --------- ----------- ----------- -----------
End of period.......... $ 159,168 $ 156,350 $ 147,867 $ 561,792 $ 500,383 $ 382,139
========= ========= ========= =========== =========== ===========
</TABLE>
See notes to financial statements.
51
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL CAPITALIZATION FUND MID CAPITALIZATION FUND
----------------------------------- ----------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- ---------- --------- ------------- --------- ---------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ (8,901) $ (7,542) $ (5,835) $ (5,117) $ (5,674) $ (5,788)
Net realized gains
(losses) from
investment
transactions.......... 124,813 47,197 97,422 108,493 90,985 176,714
Net change in
unrealized
appreciation
(depreciation) from
investments........... (119,617) (53,844) 159,250 3,191 (46,690) 44,007
--------- ---------- --------- --------- --------- ---------
Change in net assets
resulting from
operations............. (3,705) (14,189) 250,837 106,567 38,621 214,933
--------- ---------- --------- --------- --------- ---------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net realized gains
from investment
transactions.......... (8,917) (25,439) (11,580) (15,794) (23,501) (1,837)
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net realized gains
from investment
transactions.......... (2,324) (5,903) (1,972) (4,492) (5,643) (333)
DISTRIBUTIONS TO INVESTOR C
SHAREHOLDERS:
From net realized gains
from investment
transactions.......... (759) (1,578) (67) (409) (458) (14)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net realized gains
from investment
transactions.......... (27,708) (78,723) (52,159) (97,196) (167,629) (26,657)
--------- ---------- --------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... (39,708) (111,643) (65,778) (117,891) (197,231) (28,841)
--------- ---------- --------- --------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 901,362 1,051,669 914,251 344,908 344,245 195,102
Dividends reinvested... 31,608 85,417 47,118 87,033 140,424 20,862
Cost of shares
redeemed.............. (995,717) (909,908) (831,418) (435,074) (411,014) (401,722)
--------- ---------- --------- --------- --------- ---------
Change in net assets
from share
transactions........... (62,747) 227,178 129,951 (3,133) 73,655 (185,758)
--------- ---------- --------- --------- --------- ---------
Change in net assets.... (106,160) 101,346 315,010 (14,457) (84,955) 334
NET ASSETS:
Beginning of period.... 853,289 751,943 436,933 648,728 733,683 733,349
--------- ---------- --------- --------- --------- ---------
End of period.......... $ 747,129 $ 853,289 $ 751,943 $ 634,271 $ 648,728 $ 733,683
========= ========== ========= ========= ========= =========
</TABLE>
See notes to financial statements.
52
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
LARGE CAPITALIZATION FUND INTERNATIONAL DISCOVERY FUND
------------------------------------- ----------------------------------
ELEVEN MONTHS YEAR DECEMBER 28, ELEVEN MONTHS YEAR YEAR
ENDED ENDED 1995 TO ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 (A) 1998 1997 1996
------------- --------- ------------ ------------- --------- ---------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ (751) $ 622 $ 338 $ (1,318) $ (577) $ 243
Net realized gains
(losses) from
investment and foreign
currency transactions. 23,283 16,112 (74) 27,623 12,746 9,372
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 63,562 75,519 10,587 (1,902) 55,463 38,177
--------- --------- -------- -------- --------- ---------
Change in net assets
resulting from
operations............. 86,094 92,253 10,851 24,403 67,632 47,792
--------- --------- -------- -------- --------- ---------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income................ -- (4) (1) -- -- --
In excess of net
investment income..... -- -- -- -- -- (30)
Tax return of capital.. (37) -- -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (1,885) (19) -- (1,516) -- --
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
Tax return of capital.. (14) -- -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (694) (12) -- (442) -- --
DISTRIBUTIONS TO INVESTOR C
SHAREHOLDERS:
In excess of net
investment income..... -- -- -- -- -- (1)
From net realized gains
from investment and
foreign currency
transactions.......... (14) -- -- (32) -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ -- (728) (304) -- -- (243)
In excess of net
investment income..... -- -- -- -- (108) (528)
Tax return of capital.. (700) -- -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (35,301) (2,346) -- (13,139) -- --
--------- --------- -------- -------- --------- ---------
Change in net assets
from shareholder
distributions.......... (38,645) (3,109) (305) (15,129) (108) (802)
--------- --------- -------- -------- --------- ---------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 87,053 151,936 270,745 68,864 188,198 291,763
Dividends reinvested... 26,512 2,462 229 9,533 62 444
Cost of shares
redeemed.............. (125,548) (165,363) (4,879) (91,674) (180,358) (230,102)
--------- --------- -------- -------- --------- ---------
Change in net assets
from share
transactions........... (11,983) (10,965) 266,095 (13,277) 7,902 62,105
--------- --------- -------- -------- --------- ---------
Change in net assets.... 35,466 78,179 276,641 (4,003) 75,426 109,095
NET ASSETS:
Beginning of period.... 354,820 276,641 -- 489,059 413,633 304,538
--------- --------- -------- -------- --------- ---------
End of period.......... $ 390,286 $ 354,820 $276,641 $485,056 $ 489,059 $ 413,633
========= ========= ======== ======== ========= =========
</TABLE>
- -------
(a) Period from commencement of operations.
See notes to financial statements.
53
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
See notes to financial statements.
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE GOVERNMENT
LIMITED MATURITY BOND FUND OBLIGATIONS FUND
-------------------------------- --------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- -------- -------- ------------- -------- --------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 9,501 $ 9,196 $ 9,848 $ 10,166 $ 12,905 $ 15,345
Net realized gains
(losses) from
investment
transactions.......... (546) (256) (1,938) 2,682 1,200 80
Net change in
unrealized
appreciation
(depreciation) from
investments........... 860 467 (764) 675 (461) (4,771)
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 9,815 9,407 7,146 13,523 13,644 10,654
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (1,734) (1,142) (1,014) (822) (1,130) (1,390)
In excess of net
investment income..... (11) -- (40) -- -- (69)
Tax return of capital.. (4) (6) (63) (16) -- (22)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (62) (78) (57) (87) (90) (68)
In excess of net
investment income..... -- -- (1) -- -- (3)
Tax return of capital.. -- -- (4) (2) -- (1)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ (61) (1) -- (10) (7) (3)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (7,645) (8,051) (8,776) (9,353) (11,898) (13,884)
In excess of net
investment income..... (48) -- (290) -- -- (691)
Tax return of capital.. (16) (29) (535) (174) -- (215)
-------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (9,581) (9,307) (10,780) (10,464) (13,125) (16,346)
-------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 94,826 67,317 33,795 32,342 28,502 50,593
Dividends reinvested... 4,297 4,250 4,860 3,151 3,965 4,873
Cost of shares
redeemed.............. (68,564) (59,256) (43,995) (59,097) (74,602) (77,260)
-------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... 30,559 12,311 (5,340) (23,604) (42,135) (21,794)
-------- -------- -------- -------- -------- --------
Change in net assets.... 30,793 12,411 (8,974) (20,545) (41,616) (27,486)
NET ASSETS:
Beginning of period.... 165,040 152,629 161,603 208,574 250,190 277,676
-------- -------- -------- -------- -------- --------
End of period.......... $195,833 $165,040 $152,629 $188,029 $208,574 $250,190
======== ======== ======== ======== ======== ========
</TABLE>
54
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. GOVERNMENT
INCOME FUND BOND FUND
-------------------------------- --------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- -------- -------- ------------- -------- --------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 16,234 $ 16,601 $ 14,579 $ 29,000 $ 33,325 $ 32,983
Net realized gains
(losses) from
investment
transactions.......... (115) (2,156) (3,968) 14,967 5,014 6,686
Net change in
unrealized
appreciation
(depreciation) from
investments........... 2,119 (99) 389 2,035 4,705 (15,480)
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 18,238 14,346 11,000 46,002 43,044 24,189
-------- -------- -------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (3,394) (3,562) (3,573) (1,029) (1,195) (1,061)
In excess of net
investment income..... -- -- -- -- -- (15)
Tax return of capital.. (266) (661) (440) -- -- --
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (1,251) (1,259) (879) (302) (256) (131)
Tax return of capital.. (111) (233) (108) -- -- --
From net realized gains
from investment
transactions.......... -- -- -- -- -- (2)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ (8) (4) (2) (26) (17) (6)
Tax return of capital.. (1) (1) -- -- -- --
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (9,477) (9,151) (8,525) (27,889) (31,847) (31,785)
In excess of net
investment income..... -- -- -- -- -- (443)
Tax return of capital.. (718) (1,697) (1,052) -- -- --
-------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (15,226) (16,568) (14,579) (29,246) (33,315) (33,443)
-------- -------- -------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 63,657 72,865 65,682 84,885 99,111 136,614
Dividends reinvested... 4,148 4,289 3,922 19,777 23,608 23,823
Cost of shares
redeemed.............. (61,398) (46,463) (33,163) (134,070) (188,258) (105,155)
-------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... 6,407 30,691 36,441 (29,408) (65,539) 55,282
-------- -------- -------- -------- -------- --------
Change in net assets.... 9,419 28,469 32,862 (12,652) (55,810) 46,028
NET ASSETS:
Beginning of period.... 230,960 202,491 169,629 518,337 574,147 528,119
-------- -------- -------- -------- -------- --------
End of period.......... $240,379 $230,960 $202,491 $505,685 $518,337 $574,147
======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
55
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
MUNICIPAL MICHIGAN MUNICIPAL
BOND FUND BOND FUND
-------------------------------- ---------------------------------
ELEVEN MONTHS YEAR YEAR ELEVEN MONTHS YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
MAY 31, JUNE 30, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 1996 1998 1997 1996
------------- -------- -------- ------------- --------- --------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 4,984 $ 6,295 $ 5,946 $ 9,887 $ 10,862 $ 10,082
Net realized gains
(losses) from
investment
transactions.......... 2,879 798 1,577 1,120 370 1,191
Net change in
unrealized
appreciation
(depreciation) from
investments .......... (21) 950 (985) 3,953 2,487 (324)
-------- -------- -------- -------- --------- --------
Change in net assets
resulting from
operations............. 7,842 8,043 6,538 14,960 13,719 10,949
-------- -------- -------- -------- --------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ (361) (344) (394) (1,611) (1,596) (1,652)
In excess of net in-
vestment income....... (5) -- -- (6) -- --
From net realized gains
from investment
transactions.......... (172) (42) -- (112) (125) (125)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ (25) (28) (18) (127) (118) (107)
In excess of net in-
vestment income....... -- -- -- (1) -- --
From net realized gains
from investment
transactions.......... (13) (5) -- (10) (11) (9)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (5,004) (5,598) (5,465) (8,863) (8,576) (8,321)
In excess of net in-
vestment income....... (69) -- -- (34) -- --
From net realized gains
from investment
transactions.......... (2,220) (635) (4) (561) (626) (591)
-------- -------- -------- -------- --------- --------
Change in net assets
from shareholder
distributions.......... (7,869) (6,652) (5,881) (11,325) (11,052) (10,805)
-------- -------- -------- -------- --------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 17,096 30,200 37,655 49,586 43,600 41,685
Dividends reinvested... 949 686 654 2,688 2,460 2,574
Cost of shares
redeemed.............. (29,067) (28,261) (44,478) (43,899) (37,409) (35,178)
-------- -------- -------- -------- --------- --------
Change in net assets
from share
transactions........... (11,022) 2,625 (6,169) 8,375 8,651 9,081
-------- -------- -------- -------- --------- --------
Change in net assets.... (11,049) 4,016 (5,512) 12,010 11,318 9,225
NET ASSETS:
Beginning of period.... 145,113 141,097 146,609 236,755 225,437 216,212
-------- -------- -------- -------- --------- --------
End of period.......... $134,064 $145,113 $141,097 $248,765 $ 236,755 $225,437
======== ======== ======== ======== ========= ========
</TABLE>
See notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
CONSERVATIVE BALANCED
ALLOCATION FUND ALLOCATION FUND
-------------------------- --------------------------------
ELEVEN MONTHS DECEMBER 30, ELEVEN MONTHS YEAR YEAR
ENDED 1996 TO ENDED ENDED ENDED
MAY 31, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997 (A) 1998 1997 1996
------------- ------------ ------------- -------- --------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)................ $ 530 $ 139 $ 6,604 $ 5,337 $ 2,996
Net realized gains
(losses) from
investment and foreign
currency transactions. 387 (102) 8,982 12,043 12,212
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 692 335 16,238 5,097 3,923
------- ------- -------- -------- --------
Change in net assets
resulting from
operations............. 1,609 372 31,824 22,477 19,131
------- ------- -------- -------- --------
DISTRIBUTIONS TO
INVESTOR A
SHAREHOLDERS:
From net investment
income................ -- -- (460) (454) (338)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (504) (1,957) (668)
DISTRIBUTIONS TO
INVESTOR B
SHAREHOLDERS:
From net investment
income................ -- -- (125) (90) (41)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (192) (547) (119)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income................ -- -- (16) (10) (4)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- (26) (56) (9)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income................ (515) (122) (6,660) (4,750) (2,494)
From net realized gains
from investment and
foreign currency
transactions.......... (98) -- (6,807) (13,278) (4,422)
------- ------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (613) (122) (14,790) (21,142) (8,095)
------- ------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................ 9,933 11,873 72,317 167,477 42,664
Dividends reinvested... 610 122 13,392 17,657 6,646
Cost of shares
redeemed.............. (4,795) (1,958) (83,157) (50,433) (28,664)
------- ------- -------- -------- --------
Change in net assets
from share
transactions........... 5,748 10,037 2,552 134,701 20,646
------- ------- -------- -------- --------
Change in net assets.... 6,744 10,287 19,586 136,036 31,682
NET ASSETS:
Beginning of period.... 10,287 -- 271,266 135,230 103,548
------- ------- -------- -------- --------
End of period.......... $17,031 $10,287 $290,852 $271,266 $135,230
======= ======= ======== ======== ========
</TABLE>
(a) Period from commencement of operations.
See notes to financial statements.
57
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE EQUITY
ALLOCATION FUND INCOME FUND
-------------------------- --------------------------------
ELEVEN MONTHS DECEMBER 30, ELEVEN MONTHS YEAR YEAR
ENDED 1996 TO ENDED ENDED ENDED
MAY 31, JUNE 30, MAY 31, JUNE 30, JUNE 30,
1998 1997(A) 1998 1997 1996
------------- ------------ ------------- -------- --------
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
<S> <C> <C> <C> <C> <C> <C>
Net investment income
(loss)............... $ 412 $ 232 $ 5,994 $ 7,779 $ 8,736
Net realized gains
(losses) from
investment and
foreign currency
transactions......... 1,126 (648) 48,190 49,802 45,001
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies .. 2,816 2,394 13,536 38,267 42,614
------- ------- -------- -------- --------
Change in net assets
resulting from
operations............. 4,354 1,978 67,720 95,848 96,351
------- ------- -------- -------- --------
DISTRIBUTIONS TO INVESTOR A
SHAREHOLDERS:
From net investment
income............... -- -- (1,126) (1,408) (1,414)
From net realized
gains from investment
and foreign currency
transactions......... -- -- (15,973) (8,386) (2,095)
DISTRIBUTIONS TO INVESTOR B
SHAREHOLDERS:
From net investment
income............... -- -- (127) (150) (104)
In excess of net
investment income.... -- -- -- -- (7)
From net realized
gains from investment
and foreign currency
transactions......... -- -- (3,858) (1,419) (244)
DISTRIBUTIONS TO
INVESTOR C
SHAREHOLDERS:
From net investment
income............... -- -- (4) (4) (1)
From net realized
gains from investment
and foreign currency
transactions......... -- -- (116) (25) (2)
DISTRIBUTIONS TO
INSTITUTIONAL
SHAREHOLDERS:
From net investment
income............... (437) (195) (3,961) (6,142) (7,170)
In excess of net
investment income.... (10) -- -- -- --
From net realized
gains from investment
and foreign currency
transactions......... -- -- (48,180) (32,123) (9,595)
------- ------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (447) (195) (73,345) (49,657) (20,632)
------- ------- -------- -------- --------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued............... 9,513 39,922 41,683 78,441 50,436
Dividends reinvested.. 446 195 31,258 18,619 7,352
Cost of shares
redeemed............. (19,093) (2,857) (89,674) (138,602) (125,422)
------- ------- -------- -------- --------
Change in net assets
from share
transactions........... (9,134) 37,260 (16,733) (41,542) (67,634)
------- ------- -------- -------- --------
Change in net assets.... (5,227) 39,043 (22,358) 4,649 8,085
NET ASSETS:
Beginning of period... 39,043 -- 437,117 432,468 424,383
------- ------- -------- -------- --------
End of period......... $33,816 $39,043 $414,759 $437,117 $432,468
======= ======= ======== ======== ======== ===
</TABLE>
(a) Period from commencement of operations.
See notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Eleven Months Ended May 31, 1998
<TABLE>
<CAPTION>
(Amounts in thousands)
INTERMEDIATE
MID LARGE LIMITED GOVERNMENT
CAPITALIZATION CAPITALIZATION MATURITY OBLIGATIONS
FUND FUND BOND FUND FUND
-------------- -------------- ----------- ------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
<S> <C> <C> <C> <C>
Total Investment
Income................. $ 3,279 $ 3,040 $ 11,005 $ 11,964
Net expenses............ (8,396) (3,791) (1,504) (1,798)
----------- ----------- ----------- ----------
Net Investment Income
(loss)............... (5,117) (751) 9,501 10,166
Adjustments to reconcile
net investment income to
net
cash provided (used) by
operating activities:
Amortization of
discount/premium....... -- -- (124) (378)
Change in interest and
dividend receivable.... (67) 57 (766) 781
Change in accrued
expenses and other
payables............... (517) (213) (68) (150)
----------- ----------- ----------- ----------
Total adjustments....... (584) (156) (958) 253
----------- ----------- ----------- ----------
Net cash provided
(used) by operating
activities........... (5,701) (907) 8,543 10,419
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from sales of
investments............ 6,541,934 2,929,933 5,546,791 2,688,126
Purchases of
investments............ (6,418,271) (2,878,167) (5,579,338) (2,664,548)
Net purchases of short-
term investments....... (205,530) (112,934) (46,982) (35,420)
----------- ----------- ----------- ----------
Net cash provided
(used) by investing
activities........... (81,867) (61,168) (79,529) (11,842)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from shares
issued................. 347,750 87,106 97,864 32,345
Cost of shares
redeemed............... (434,854) (125,833) (68,585) (59,029)
Distributions paid to
shareholders........... (117,891) (38,645) (9,581) (10,464)
Dividends reinvested.... 87,033 26,512 4,297 3,151
Net proceeds received
from short-term
borrowings............. 205,530 112,934 46,982 35,420
----------- ----------- ----------- ----------
Net cash provided
(used) by financing
activities........... 87,568 62,074 70,977 1,423
Net increase (decrease)
in cash................. -- (1) (9) --
Cash at beginning of
period.................. 1 1 9 --
----------- ----------- ----------- ----------
Cash at end of period.... $ 1 $ -- $ -- $ --
=========== =========== =========== ==========
</TABLE>
See notes to financial statements.
59
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Eleven Months Ended May 31, 1998
<TABLE>
<CAPTION>
(Amounts in thousands)
U.S.
GOVERNMENT CONSERVATIVE
INCOME BOND ALLOCATION
FUND FUND FUND
----------- ------------ ------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
<S> <C> <C> <C>
Total Investment Income........... $ 18,276 $ 33,623 $ 683
Net expenses...................... (2,042) (4,623) (153)
----------- ------------ ---------
Net Investment Income (loss).... 16,234 29,000 530
Adjustments to reconcile net
investment income to net
cash provided (used) by operating
activities:
Amortization of discount/premium.. (443) (454) --
Change in interest and dividend
receivable....................... (95) (503) (20)
Change in accrued expenses and
other payables................... (69) (276) (6)
----------- ------------ ---------
Total adjustments................. (607) (1,233) (26)
----------- ------------ ---------
Net cash provided (used) by
operating activities........... 15,627 27,767 504
CASH FLOWS FROM INVESTING
ACTIVITIES:
Proceeds from sales of
investments...................... 1,607,674 12,102,324 251,153
Purchases of investments.......... (1,615,117) (12,077,096) (256,791)
Net purchases of short-term
investments...................... (30,904) (130,272) (2,429)
----------- ------------ ---------
Net cash provided (used) by
investing activities........... (38,347) (105,044) (8,067)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from shares issued....... 64,151 84,899 9,933
Cost of shares redeemed........... (61,256) (133,932) (4,795)
Distributions paid to
shareholders..................... (15,226) (29,246) (613)
Dividends reinvested.............. 4,148 19,777 610
Net proceeds received from short-
term borrowings.................. 30,904 130,272 2,429
----------- ------------ ---------
Net cash provided (used) by
financing activities........... 22,721 71,770 7,564
Net increase (decrease) in cash.... 1 (5,507) 1
Cash at beginning of period........ -- 5,508 --
----------- ------------ ---------
Cash at end of period.............. $ 1 $ 1 $ 1
=========== ============ =========
</TABLE>
See notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the eleven months ended May 31, 1998
See notes to financial statements.
<TABLE>
<CAPTION>
(Amounts in thousands)
BALANCED AGGRESSIVE EQUITY
ALLOCATION ALLOCATION INCOME
FUND FUND FUND
----------- ---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C> <C>
Total Investment Income................. $ 9,628 $ 878 $ 11,711
Net expenses............................ (3,024) (466) (5,717)
----------- --------- -----------
Net Investment Income (loss).......... 6,604 412 5,994
Adjustments to reconcile net investment
income to net cash provided (used) by
operating activities:
Change in interest and dividend
receivable............................. (12) 49 (268)
Change in accrued expenses and other
payables............................... (393) (59) (343)
----------- --------- -----------
Total adjustments....................... (405) (10) (611)
----------- --------- -----------
Net cash provided (used) by operating
activities........................... 6,199 402 5,383
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of investments...... 3,793,006 454,634 2,341,345
Purchases of investments................ (3,787,011) (445,444) (2,256,694)
Net purchases of short-term
investments............................ (49,587) (6,923) (104,142)
----------- --------- -----------
Net cash provided (used) by investing
activities........................... (43,592) 2,267 (19,491)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from shares issued............. 72,358 9,513 41,676
Cost of shares redeemed................. (83,153) (19,093) (89,623)
Distributions paid to shareholders...... (14,790) (447) (73,345)
Dividends reinvested.................... 13,392 446 31,258
Net proceeds received from short-term
borrowings............................. 49,587 6,923 104,142
----------- --------- -----------
Net cash provided (used) by financing
activities........................... 37,394 (2,658) 14,108
Net increase (decrease) in cash.......... 1 11 --
Cash at beginning of period.............. -- (10) 1
----------- --------- -----------
Cash at end of period.................... $ 1 $ 1 $ 1
=========== ========= ===========
</TABLE>
61
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Prime Obligations Fund
(Amounts in Thousands)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ------------------------------------------------------ -----------
<C> <S> <C>
COMMERCIAL PAPER (80.5%):
Agriculture (1.1%):
$ 5,000 Archer Daniels Midland, 5.56%, 8/21/98................ $ 4,939
5,000 Cargill Global Funding, 5.50%, 9/15/98................ 4,920
-----------
9,859
-----------
Automotive (2.7%):
5,000 Daimler Benz, 5.56%, 7/23/98.......................... 4,960
5,000 Daimler Benz, 5.54%, 10/21/98......................... 4,892
5,000 Eaton Corp., 5.55%, 7/10/98........................... 4,970
5,000 Eaton Corp., 8.24%, 8/24/98........................... 4,937
5,000 Volkswagen, 5.55%, 7/9/98............................. 4,972
-----------
24,731
-----------
Banking (4.9%):
5,000 Abbey National, 5.60%, 7/2/98......................... 4,976
5,000 Abbey National, 5.50%, 8/24/98........................ 4,937
5,000 Abbey National, 5.55%, 11/4/98........................ 4,881
5,000 First Chicago NBD Corp., 5.56%, 11/12/98.............. 4,875
5,000 Lloyds Bank, 5.41%, 6/12/98........................... 4,991
5,000 Lloyds Bank, 5.48%, 7/6/98............................ 4,974
5,000 Lloyds Bank, 5.56%, 9/16/98........................... 4,919
5,000 Societe Generale, North America, 5.53%, 10/1/98....... 4,908
5,000 Societe Generale, North America, 5.54%, 10/7/98....... 4,903
-----------
44,364
-----------
Consumer Goods & Services (0.5%):
5,000 Procter & Gamble Co., 5.55%, 11/12/98................. 4,875
-----------
Diversified Operation (2.2%):
5,000 BTR Dunlop Finance, Inc., 5.55%, 7/8/98............... 4,972
5,000 BTR Dunlop Finance, Inc., 5.56%, 8/14/98.............. 4,944
5,000 Rexam, 5.59%, 6/10/98................................. 4,993
5,000 Rexam, 5.62%, 7/24/98................................. 4,959
-----------
19,868
-----------
Education (1.1%):
5,000 Columbia University, 5.57%, 6/18/98................... 4,987
5,000 Columbia University, 5.58%, 7/1/98.................... 4,977
-----------
9,964
-----------
Electric Utility (3.3%):
5,000 Electricite du France, 5.57%, 10/28/98................ 4,886
5,000 National Rural Utilities Cooperative Finance Corp.,
5.58%, 6/25/98....................................... 4,982
5,000 National Rural Utilities Cooperative Finance Corp.,
5.58%, 8/5/98........................................ 4,950
5,000 Vattenfall Treasury, 5.56%, 6/17/98................... 4,988
$ 5,000 Vattenfall Treasury, 5.58%, 6/30/98.................... 4,978
5,000 Vattenfall Treasury, 5.58%, 7/15/98.................... 4,966
-----------
29,750
-----------
Electrical & Electronic (1.1%):
5,000 Avnet, Inc., 5.58%, 6/16/98............................ 4,988
5,000 Avnet, Inc., 5.58%, 7/13/98............................ 4,968
-----------
9,956
-----------
Financial Services (22.4%):
5,000 ABB Treasury, 5.57%, 6/1/98............................ 5,000
5,000 ABB Treasury, 5.56%, 6/23/98........................... 4,983
5,000 ABB Treasury, 5.57%, 8/26/98........................... 4,934
5,000 ABN-Amro North America Finance, Inc., 5.57%, 8/5/98.... 4,950
5,000 ABN-Amro North America Finance, Inc., 5.52%, 9/21/98... 4,915
5,000 ABN-Amro North America Finance, Inc., 5.56%, 11/5/98... 4,881
5,000 American Express Credit Corp., 5.58%, 8/5/98........... 4,950
5,000 Avco Financial Services, Inc., 5.58%, 8/13/98.......... 4,944
5,000 Avco Financial Services, Inc., 5.60%, 7/29/98.......... 4,956
5,000 Cemex SA, 5.52%, 6/11/98............................... 4,992
5,000 Cemex SA, 5.60%, 8/12/98............................... 4,945
5,000 Ford Motor Credit, 5.58%, 6/4/98....................... 4,998
5,000 Ford Motor Credit, 5.56%, 7/22/98...................... 4,961
10,000 Ford Motor Credit, 5.57%, 8/19/98...................... 9,880
5,000 Franklin Resources, 5.59%, 6/9/98...................... 4,994
5,000 Franklin Resources, 5.59%, 8/19/98..................... 4,940
5,000 Franklin Resources, 5.59%, 8/26/98..................... 4,934
5,000 GE Capital, 5.58%, 6/9/98.............................. 4,994
5,000 GE Capital, 5.52%, 7/29/98............................. 4,956
5,000 GE Capital, 5.54%, 8/5/98.............................. 4,951
5,000 GE Capital, 5.44%, 8/12/98............................. 4,946
5,000 GE Capital, 5.54%, 9/23/98............................. 4,914
5,000 General Motors Acceptance Corp., 5.58%, 6/12/98........ 4,992
5,000 General Motors Acceptance Corp., 5.58%, 8/5/98......... 4,950
5,000 General Motors Acceptance Corp., 5.54%, 9/23/98........ 4,914
5,000 Goldman Sachs, 5.56%, 11/19/98......................... 4,870
5,000 International Lease, 5.58%, 9/15/98.................... 4,919
5,000 JP Morgan, 5.56%, 11/16/98............................. 4,872
5,000 JP Morgan, 5.56%, 11/24/98............................. 4,866
5,000 Merrill Lynch & Co., Inc., 5.73%, 6/3/98............... 4,998
5,000 Merrill Lynch & Co., Inc., 5.57%, 6/17/98.............. 4,988
</TABLE>
62
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Prime Obligations Fund
(Amounts in Thousands)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Financial Services, continued:
$ 5,000 Merrill Lynch & Co., Inc., 5.50%, 9/16/98................ $ 4,919
5,000 Merrill Lynch & Co., Inc., 5.53%, 10/1/98................ 4,908
5,000 Merrill Lynch & Co., Inc., 5.59%, 11/18/98............... 4,870
5,000 Morgan Stanley, 5.72%, 6/17/98........................... 4,987
5,000 Morgan Stanley, 5.48%, 7/29/98........................... 4,957
5,000 Prudential Finance, 5.56%, 7/7/98........................ 4,973
5,000 Salomon Smith Barney, 5.48%, 7/1/98...................... 4,978
5,000 Salomon Smith Barney, 5.57%, 7/15/98..................... 4,966
5,000 Salomon Smith Barney, 5.59%, 9/8/98...................... 4,924
--------
202,769
--------
Financial - Banking (7.3%):
4,200 American Family Financial Services, Inc.,
5.58%, 6/5/98........................................... 4,197
5,000 ANZ Delaware., 5.41%, 6/17/98............................ 4,988
5,000 Associates Corporation of North America,
5.58%, 8/5/98........................................... 4,950
5,000 Bbl North America, Inc., 5.58%, 6/4/98................... 4,998
5,000 Bbl North America, Inc., 5.58%, 6/23/98.................. 4,983
5,000 Bbl North America, Inc., 5.57%, 7/29/98.................. 4,956
2,800 Caterpillar Financial, 5.58%, 6/24/98.................... 2,790
5,000 Caterpillar Financial, 5.45%, 7/27/98.................... 4,958
5,000 Cregem North America, 5.58%, 6/5/98...................... 4,997
5,000 Cregem North America, 5.57%, 7/17/98..................... 4,965
5,000 Cregem North America, 5.58%, 8/6/98...................... 4,950
5,000 Island Finance, 5.56%, 7/22/98........................... 4,961
5,000 Island Finance, 5.62%, 7/27/98........................... 4,957
5,000 Island Finance, 5.62%, 8/13/98........................... 4,944
--------
66,594
--------
Food & Beverage (1.2%):
5,000 Diageo, 5.53%, 7/6/98.................................... 4,974
6,000 Diageo, 5.48%, 7/6/98.................................... 5,968
--------
10,942
--------
Food Products & Services (0.5%):
5,000 Golden Peanut Co., 5.53%, 7/17/98........................ 4,965
--------
Foreign Banking & Financial Services (17.6%):
5,000 Bank of Montreal, 5.49%, 10/5/98......................... 4,905
5,000 Bank of Nova Scotia, 5.57%, 9/1/98....................... 4,930
5,000 Bank of Nova Scotia, 5.58%, 10/20/98..................... 4,892
5,000 Bank of Scotland Treasury, 5.50%, 10/7/98................ 4,904
5,000 Bank of Montreal, 5.56%, 9/11/98......................... 4,922
5,000 Bank of Montreal, 5.53%, 10/1/98......................... 4,908
5,000 Banque Generale du Luxembourg, 5.58%, 7/17/98............ 4,965
2,000 Commonwealth Bank of Australia, 5.50%, 7/29/98........... 1,983
5,000 Commonwealth Bank of Australia, 5.53%, 10/19/98.......... 4,894
5,000 Commonwealth Bank of Australia, 5.58%, 11/4/98........... 4,881
5,000 Credit Suisse, 5.59%, 6/10/98............................ 4,993
5,000 Den Danske Bank, 5.57%, 7/22/98.......................... 4,961
5,000 Den Danske Bank, 5.51%, 8/20/98.......................... 4,940
5,000 Eksportfinans, 5.57%, 6/25/98............................ 4,982
5,000 Eksportfinans, 5.56%, 7/17/98............................ 4,965
5,000 Generale Bank, 5.50%, 9/16/98............................ 4,919
5,000 Generale Bank, 5.50%, 10/7/98............................ 4,904
5,000 Generale Bank, 5.58%, 11/4/98............................ 4,881
5,000 International Nederladen, 5.73%, 6/4/98.................. 4,998
5,000 International Nederladen, 5.58%, 7/13/98................. 4,968
5,000 International Nederladen, 5.55%, 8/3/98.................. 4,952
5,000 Monsanto Co., 5.51%, 6/9/98.............................. 4,994
5,000 National Australian Funding, 5.58%, 8/3/98............... 4,952
5,000 National Australian Funding, 5.57%, 10/26/98............. 4,888
5,000 Nordbanken, 5.45%, 8/20/98............................... 4,940
5,000 Nordbanken, 5.53%, 9/22/98............................... 4,914
5,000 Svenska Handlesbanken, 5.39%, 7/15/98.................... 4,967
5,000 Svenska Handlesbanken, 5.61%, 7/29/98.................... 4,955
5,000 Svenska Handlesbanken, 5.59%, 8/20/98.................... 4,939
5,000 Toronoto Dominion, 5.57%, 6/30/98........................ 4,978
5,000 Westpac Capital Corp., 5.46%, 7/15/98.................... 4,967
5,000 Westpac Capital Corp., 5.51%, 9/1/98..................... 4,931
5,000 Westpac Capital Corp., 5.53%, 10/19/98................... 4,894
--------
159,966
--------
Glass - Home & Auto (1.0%):
4,000 Guardian Industries, 5.56%, 7/14/98...................... 3,974
5,000 Guardian Industries, 5.59%, 8/19/98...................... 4,939
--------
8,913
--------
Housewares (0.6%):
5,410 Rubbermaid, 5.58%, 8/27/98............................... 5,338
--------
Industrial Goods & Services (0.5%):
5,000 Sherwin Williams, 5.57%, 6/8/98.......................... 4,995
--------
Insurance (4.2%):
4,300 Allianz of America Finance Corp., 5.57%, 7/8/98.......... 4,276
5,000 Allianz of America Finance Corp., 5.62%, 7/20/98......... 4,962
4,000 Allianz of America Finance Corp., 5.61%, 8/4/98.......... 3,961
5,000 American General Finance Corp., 5.57%, 7/15/98........... 4,966
</TABLE>
63
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMERCIAL PAPER, CONTINUED:
Insurance, continued:
$ 5,000 Great Western Life, 5.61%, 7/23/98....................... $ 4,960
5,615 International Nederladen Americas Co., 5.59%, 8/28/98.... 5,540
5,000 New York Life, 5.57%, 10/7/98............................ 4,902
5,000 SunAmerica Life Insurance Co., 5.58%, 6/30/98............ 4,978
--------
38,545
--------
Metals & Mining (2.2%):
5,000 Rio Tinto American, 5.45%, 8/7/98........................ 4,950
5,000 Rio Tinto American, 5.58%, 8/12/98....................... 4,945
5,000 Rio Tinto American, 5.58%, 8/14/98....................... 4,943
5,000 U.S. Borax, 5.60%, 7/29/98............................... 4,956
--------
19,794
--------
Oil & Exploration, Production & Services (3.3%):
5,000 Baker Hughes, Inc., 5.58%, 7/7/98........................ 4,973
5,000 Pemex, 5.50%, 6/18/98.................................... 4,987
5,000 Pemex, 5.58%, 9/11/98.................................... 4,922
5,000 Statoil, 5.58%, 8/25/98.................................. 4,935
5,000 Statoil, 5.59%, 8/26/98.................................. 4,934
5,000 Statoil, 5.58%, 8/27/98.................................. 4,934
--------
29,685
--------
Oil & Gas (2.3%):
5,000 Burmah Castrol Oil, 5.50%, 10/6/98....................... 4,904
5,000 Colonial Pipeline Co., 5.56%, 10/16/98................... 4,896
8,000 Explorer Pipeline, 5.59%, 6/10/98........................ 7,989
3,000 Explorer Pipeline, 5.61%, 6/22/98........................ 2,990
--------
20,779
--------
Pharmaceuticals (0.5%):
5,000 American Home Products, 5.56%, 6/19/98................... 4,986
--------
Total Commercial Paper 731,638
--------
CORPORATE BONDS (5.5%):
Banking (1.6%):
5,000 Absit 97-CN, 5.66%*, 6/15/98............................. 5,000
5,000 Comerica Bank, 5.64%*, 6/10/98........................... 5,000
5,000 Comerica Bank, 5.70%*, 10/21/98.......................... 4,999
--------
14,999
--------
Financial & Insurance (0.5%):
$ 5,000 SMM Trust, 5.69%*, 12/16/98.............................. 5,000
--------
Financial Services (3.4%):
10,000 All State Funding, 5.72%*, 12/1/98....................... 10,000
5,000 Bear Stearns, 5.66%*, 6/16/98............................ 5,000
5,000 Bear Stearns, 5.74%*, 11/12/98........................... 5,000
5,000 Travelers Funding Agreement, 5.72%*, 8/17/98............. 5,000
5,000 Travelers Funding Agreement, 5.74%*, 3/26/99............. 5,000
--------
30,000
--------
Total Corporate Bonds 49,999
--------
U.S. GOVERNMENT AGENCIES (0.5%):
Student Loan Marketing Assoc. (0.5%):
5,000 5.35%*, 11/10/98......................................... 4,997
--------
Total U.S. Government Agencies 4,997
--------
REPURCHASE AGREEMENTS (13.9%):
40,000 Greenwich Capital, 5.62%, 6/1/98, (Collateralized by
$41,348, FNMA's, 6.00-6.50%, 3/1/13-1/1/28, market
value--$40,802)......................................... 40,000
61,073 HSBC, 5.61%, 6/1/98, (Collateralized by $63,861, U.S.
Treasury Bills, 0.00%, 11/5/98-11/19/98, market value--
$62,298)................................................ 61,073
25,000 Morgan Stanley, 5.79%, 6/1/98, (Collateralized by
$6,000, Vesta Capital, 0.00%, 1/15/27, market value--
$6,480, by $100, CBM National City Bank, 0.00%,
5/13/02, market value--$95, by $14,500, Lowen Group,
0.00%, 4/15/01, market value--$14,203, by $5,000,
Conseco Financial Trust, 0.00%, 4/15/01, market value--
$5,335) ................................................ 25,000
--------
Total Repurchase Agreements 126,073
--------
Total Investments
(Cost $912,707)(a)--100.4% 912,707
Liabilities in excess of other assets (0.4)% (3,439)
--------
Total Net Assets--100.0% $909,268
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31,1998.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
U.S. Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
U.S. GOVERNMENT AGENCIES (57.3%):
Federal Farm Credit Bank (4.2%):
$ 5,000 5.90%, 6/2/98............................................. $ 5,000
5,000 5.44%*, 7/1/98............................................ 5,000
5,000 5.75%, 9/11/98............................................ 4,999
--------
14,999
--------
Federal Home Loan Bank (7.0%):
5,000 5.39%, 8/26/98............................................ 4,936
5,000 5.69%, 9/24/98............................................ 5,001
5,000 5.63%*, 10/20/98.......................................... 4,999
5,000 5.43%, 10/21/98........................................... 4,894
5,000 5.78%, 10/30/98........................................... 5,004
--------
24,834
--------
Federal Home Loan Mortgage Corp. (16.7%):
4,560 5.65%, 6/5/98............................................. 4,557
5,000 5.49%, 6/8/98............................................. 4,994
5,000 5.48%, 6/12/98............................................ 4,992
5,000 5.49%, 6/17/98............................................ 4,988
5,000 5.51%, 6/30/98............................................ 4,978
5,000 5.35%, 7/6/98............................................. 4,974
5,000 5.45%, 7/10/98............................................ 4,971
5,000 5.50%, 7/23/98............................................ 4,961
5,000 5.48%, 8/3/98............................................. 4,953
5,000 5.48%, 8/6/98............................................. 4,951
5,000 5.42%, 9/4/98............................................. 4,929
5,000 5.41%, 10/6/98............................................ 4,906
--------
59,154
--------
Federal National Mortgage Assoc. (23.8%):
5,000 5.49%, 6/11/98............................................ 4,992
5,000 5.48%, 7/16/98............................................ 4,966
5,000 5.42%, 7/27/98............................................ 4,958
10,000 5.48%, 8/10/98............................................ 9,897
5,000 5.35%, 8/18/98............................................ 4,943
5,000 5.34%, 8/20/98............................................ 4,941
10,000 5.42%, 8/24/98............................................ 9,875
5,000 5.49%, 8/27/98........................................... 4,935
5,000 5.41%, 8/28/98........................................... 4,935
5,000 5.43%, 9/14/98........................................... 4,922
5,000 5.45%, 9/24/98........................................... 4,914
5,000 5.44%, 9/28/98........................................... 4,911
5,000 5.41%, 10/13/98.......................................... 4,901
5,000 5.45%, 10/14/98.......................................... 4,899
5,000 5.54%*, 3/3/99........................................... 5,000
--------
83,989
--------
Student Loan Marketing Assoc. (5.6%):
5,000 5.60%, 8/11/98........................................... 4,998
5,000 5.64%*, 11/4/98.......................................... 4,999
10,000 5.35%*, 11/10/98......................................... 9,995
--------
19,992
--------
Total U.S. Government Agencies 202,968
--------
REPURCHASE AGREEMENTS (43.0%):
40,000 Greenwich Capital, 5.62%, 6/1/98 (b)..................... 40,000
25,000 Greenwich Capital, 5.62%, 6/1/98 (b)..................... 25,000
67,562 HSBC, 5.61%, 6/1/98, (Collateralized by $44,010, U.S.
Treasury Bill, 0.00%, 11/5/98, market value--$43,002, by
$25,660, SLMA, 5.54%, 2/25/00, market value--$25,915)... 67,562
20,000 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$20,310, FNMA ARM, 6.11%, 11/1/27, market value--
$20,513)................................................ 20,000
--------
Total Repurchase Agreements 152,562
--------
Total Investments
(Cost $355,530)(a)--100.3% 355,530
Liabilities in excess of other assets (0.3)% (936)
--------
Total Net Assets--100.0% $354,594
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
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 May 31, 1998.
(a) Cost for federal income tax and financial reporting purposes are the same.
(b) Collateralized by $67,126, FNMA's, 6.00%-9.50%, 1/1/03-5/1/29, market
value-$66,305.
See notes to financial statements.
65
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER (95.5%):
Arizona (1.4%):
$ 1,000 Phoenix, Highway User Revenue,
6.90%, 7/1/04, Prerefunded 7/1/98 @102................. $ 1,022
1,250 Pima County, 6.10%, 7/1/98.............................. 1,253
--------
2,275
--------
Colorado (5.3%):
1,000 Denver City & County, Refunding Bonds, 5.60%, 8/1/98.... 1,003
2,900 Platte River, 3.45%, 6/10/98............................ 2,900
4,600 Platte River, 3.40%, 7/8/98............................. 4,600
--------
8,503
--------
Georgia (5.2%):
2,315 Cobb County School District,
3.70%, 2/1/99.......................................... 2,334
1,100 Hapeville, Development Authority, IDR, 3.95%*, 11/1/15.. 1,100
3,585 Municipal Gas Authority, Natural Gas Revenue, Southern
Portfolio I Project, 3.75%*, 7/19/98................... 3,585
1,285 Private Colleges & Universities Authority, 5.00%,
11/1/98................................................ 1,293
--------
8,312
--------
Illinois (1.3%):
2,000 Health Facilities Authority Advocate, Health Care,
Series B, 4.05%*, 8/15/22.............................. 2,000
--------
Kansas (6.3%):
5,000 Burlington, Kansas City Power & Light, Series A, 3.75%,
8/12/98, LOC: Tornoto Dominion......................... 5,000
2,000 Burlington, Series 87B, 3.60%, 6/11/98.................. 2,000
3,000 State, Series 94B, 3.75%*, 9/1/14, Prerefunded 6/3/98
@100................................................... 3,000
--------
10,000
--------
Kentucky (3.9%):
6,200 Lexington-Fayette, Urban County Airport, AMT, 3.90%*,
4/1/24**............................................... 6,200
--------
Louisiana (3.0%):
1,300 De Soto Parish, PCR, Central Louisana Electric Co.,
Refunding Bonds, Series A, 3.85%*, 7/1/18**............ 1,300
2,000 East Baton Rouge, 3.85%, 10/1/27**...................... 2,001
1,400 Public Facilities Authority, Series 1985, IDR, 3.95%*,
12/1/15................................................ 1,400
--------
4,701
--------
Maryland (1.9%):
$ 3,000 Montgomery County, 3.70%, 7/8/98, LOC: Union Bank of
Switzerland............................................ 3,000
--------
Michigan (12.5%):
1,700 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series F, 4.00%*, 12/1/13.............................. 1,700
1,000 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series E, 4.00%*, 12/1/23.............................. 1,000
700 Delta County, Economic Development Corp., AMT,
Environmental Improvement Revenue Bond,
4.00%*, 12/1/23........................................ 700
2,000 Detroit Water Revenue Bond, 7.88%, 7/1/19, Prerefunded
7/1/98 @102............................................ 2,047
3,900 Housing Development Authority,
3.80%*, 10/1/07**...................................... 3,900
2,000 Municipal Bond Authority, 4.50%, 7/2/98................. 2,001
900 Royal Oak Michigan Hospital Finance Authority, Revenue
Bond, Series L, 4.00%*, 6/1/98, Callable Daily @100,
LOC: Bank of America................................... 900
2,500 Royal Oak, Hospital Financial Authority, William
Beaumont Hospital, Series C, 7.38%, 1/1/20**........... 2,599
600 Strategic Fund, 3.85%*, 9/1/30, LOC: Barclays PLC....... 600
500 University Of Michigan Hospital, Revenue Bond, Series A,
4.00%*, 12/1/27........................................ 500
3,000 University Of Michigan Hospital, Revenue Bond, Series A-
2, 4.00%*, 12/1/24..................................... 3,000
100 University of Michigan, Hospital Revenue, Series A,
3.90%*, 12/1/27........................................ 100
1,000 Wayne Charter County, Airport Revenue, AMT, 3.85%*,
12/1/16**.............................................. 1,000
--------
20,047
--------
Minnesota (0.6%):
1,000 State, Refunding Bonds, 6.60%, 8/1/99, Prerefunded
8/1/98 @100............................................ 1,005
--------
North Carolina (3.8%):
6,000 Eastern Municipal Power Authority, 3.80%, 6/8/98........ 6,000
--------
Oklahoma (0.8%):
1,200 Muskogee, PCR, Oklahoma Gas & Electric Co., Series A,
4.00%*, 1/1/25......................................... 1,200
--------
</TABLE>
Continued
66
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- -------------------------------------------------------- ---------
<C> <S> <C>
MUNICIPAL BONDS, NOTES, & COMMERCIAL PAPER, CONTINUED:
Oregon (1.3%):
$ 2,000 State Housing & Community Service, Series C, 3.75%,
5/13/99................................................ $ 2,000
--------
Pennsylvania (10.2%):
2,500 Allegheny County, IDR, 3.65%*, 12/16/98................. 2,500
1,000 College Township, IDR, 3.85%*, 11/1/11.................. 1,000
2,900 Higher Educational Facilities Authority, Carnegie
Mellon, 4.00%*, 11/1/25, LOC: 50% Union Bank of
Switzerland, 50% Morgan Guaranty Trust................. 2,900
5,000 Montgomery County, Series 1994-A, 3.65%, 8/26/98, LOC:
Deutsch................................................ 5,000
1,900 Philadelphia Hospitals & Higher Education Facilities
Authority Revenue, 4.00%*, 3/1/27, Children's Hospital
of Philadelphia Project, LOC: Morgan Guaranty Trust.... 1,900
3,000 Washington County Higher Education, Pooled Equipment
Lease Revenue, 3.85%*, 11/1/05......................... 3,000
--------
16,300
--------
Tennessee (4.1%):
3,500 State School Bond Authority, Series A, 3.70%, 8/18/98,
LOC: Union Bank of Switzerland......................... 3,500
3,000 Tennessee Schools, 3.45%, 6/15/98....................... 3,000
--------
6,500
--------
Texas (13.2%):
3,600 Harris County, Health Facilities Authority, Methodist
Hospital, 3.85%*, 12/1/25.............................. 3,600
4,000 Houston, Series A, 3.85%, 6/10/98, LOC: Toronto
Dominion............................................... 4,000
2,000 Houston, Series B, 3.70%, 7/22/98, LOC: Union Bank of
Switzerland............................................ 2,000
2,600 Revenue Bond, 3.20%*, 6/1/98, Sewer Improvements........ 2,600
1,000 San Antonio, 3.70%, 7/9/98, LOC: Texas Commerce......... 1,000
5,000 San Antonio, Electric & Gas,
3.75%, 8/19/98......................................... 5,000
2,000 San Antonio, Electric & Gas, 3.70%, 8/25/98............. 2,000
1,000 Texas Tax and Revenue Anticipation Notes, 1997 Series A,
4.75%, 8/31/98......................................... 1,002
--------
21,202
--------
Utah (3.6%):
3,500 Salt Lake County, PCR, Service Station Holding Project,
Series B, 3.80%*, 8/1/07............................... 3,500
2,200 State Recreational Facilities Improvement, 5.00%,
7/1/98................................................. 2,202
--------
5,702
--------
Virginia (2.5%):
2,000 Alexandria Industrial Development Authority, AMT,
3.95%*, 12/1/16........................................ 2,000
1,000 Chesapeake, Water & Sewer System Revenue Bond, 6.50%,
12/1/20, Prerefunded 12/1/98 @102...................... 1,015
1,000 Virginia State, Refunding Bonds,
5.50%, 12/1/98......................................... 1,015
--------
4,030
--------
Washington (5.7%):
6,000 King County, 3.75%, 7/17/98............................. 6,000
3,000 King County, Sewer System,
3.75%, 7/23/98......................................... 3,000
--------
9,000
--------
Wisconsin (0.9%):
1,400 Milwaukee, Revenue Bond,
4.25%, 8/27/98......................................... 1,402
--------
Wyoming (8.0%):
2,400 Converse County, PCR, Pacificorp Projects, 4.90%*,
11/1/24................................................ 2,400
2,000 Lincoln County, 3.65%, 7/20/98, LOC: Union Bank of
Switzerland............................................ 2,000
4,000 Lincoln County, 3.65%, 7/20/98, LOC: Union Bank of
Switzerland............................................ 4,000
2,000 Lincoln County, 3.70%, 7/21/98, LOC: Union Bank of
Switzerland............................................ 2,000
2,300 Lincoln County, PCR, Exxon Project-A, 4.05%*, 11/1/14... 2,300
--------
12,700
--------
Total Municipal Bonds, Notes, & Commercial Paper 152,079
--------
</TABLE>
Continued
67
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY AMORTIZED
AMOUNT DESCRIPTION COST
--------- --------------------------------------------------------- ---------
<C> <S> <C>
INVESTMENT COMPANIES (4.1%):
6,516,767 Municipal Cash Mutual Fund............................... $ 6,517
11,377 PIMCO Municipal Fund..................................... 11
--------
Total Investment Companies......................................... 6,528
--------
Total Investments
(Cost $158,607)(a)--99.6%......................................... 158,607
Other assets in excess of liabilities--0.4%........................ 561
--------
Total Net Assets--100.0%........................................... $159,168
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1998.
** 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.
AMT--Alternative Minimum Tax
IDR--Industrial Development Revenue
LOC--Letter of Credit
PCR--Pollution Control Revenue
See notes to financial statements.
68
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Treasury Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES (15.6%):
$ 10,000 6.25%, 6/30/98........................................... $ 10,005
7,500 6.25%, 7/31/98........................................... 7,507
15,000 6.13%, 8/31/98........................................... 15,022
12,500 6.00%, 9/30/98........................................... 12,520
12,500 5.63%, 11/30/98.......................................... 12,508
5,000 5.75%, 12/31/98.......................................... 5,009
10,000 6.38%, 1/15/99........................................... 10,050
5,000 5.88%, 3/31/99........................................... 5,015
5,000 6.25%, 3/31/99........................................... 5,028
5,000 6.38%, 4/30/99........................................... 5,035
--------
Total U.S. Treasury Notes 87,699
--------
REPURCHASE AGREEMENTS (84.5%):
28,000 Bank of America Securities, 5.54%, 6/1/98,
(Collateralized by $25,730, U.S. Treasury Note, 7.00%,
7/15/06, market value--$28,560)......................... 28,000
28,000 Dresdner Securities, 5.50%, 6/1/98, (Collateralized by
$27,199, U.S. Treasury Note, 6.00%, 6/30/99, market
value--$28,000)......................................... 28,000
10,000 Goldman Sachs, 5.43%, 6/2/98 (b)......................... 10,000
10,000 Goldman Sachs, 5.43%, 6/16/98 (b)........................ 10,000
140,000 Greenwich Capital, 5.56%, 6/1/98, (Collateralized by
$141,288, U.S. Treasury Notes, 4.75-6.00%, 8/31/98-
9/30/99,
market value--$142,802)................................. 140,000
28,000 HSBC, 5.56%, 6/1/98, (Collateralized by $27,626, U.S.
Treasury Notes, 3.38%-6.25%, 5/31/98-1/15/08, market
value--$28,564)......................................... 28,000
28,000 J.P. Morgan Securities, Inc., 5.54%, 6/1/98,
(Collateralized by $27,595, U.S. Treasury Note, 6.25%,
2/28/02, market value--$28,561)......................... 28,000
10,000 Morgan Stanley, 5.45%, 6/22/98, (Collateralized by
$9,845, U.S. Treasury Note, 6.50%, 8/31/01, market
value--$10,053)......................................... 10,000
140,000 Nomura Securities, 5.57%, 6/1/98, (Collateralized by
$450,016, U.S. Treasury Note Strips, 0.00%, 8/15/14-
5/15/20,
market value--$140,000)................................. 140,000
24,666 Prudential Securities, 5.50%, 6/1/98, (Collateralized by
$24,790, U.S. Treasury Note, 5.88%, 2/28/99, market
value--$25,614)......................................... 24,666
28,000 Union Bank of Switzerland, 5.54%, 6/1/98,
(Collateralized by $20,962, U.S. Treasury Note, 11.75%,
2/15/10, market value--$28,561)......................... 28,000
--------
Total Repurchase Agreements 474,666
--------
Total Investments (Cost $562,365)(a)--100.1% 562,365
Liabilities in excess of other assets (0.1)% (573)
--------
Total Net Assets--100.0% $561,792
========
</TABLE>
- -------
(a) Cost for federal income tax and financial reporting purposes are the same.
(b) Collateralized by $12,734, U.S. Treasury Bond, 13.25%, 5/15/14, market
value--$20,000.
See notes to financial statements.
69
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Small Capitalization Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (90.9%):
Advertising (1.8%):
428,125 HA-LO Industries, Inc.(b)................................. $ 13,245
--------
Business Services (18.0%):
205,300 Applied Graphics Technologies, Inc.(b).................... 9,906
645,750 Concord EFS, Inc.(b)...................................... 20,584
277,100 Envoy Corp.(b)............................................ 12,158
244,900 Hagler Bailly, Inc.(b).................................... 6,735
370,650 International Telecommunications Data Systems, Inc.(b).... 9,127
246,300 Iron Mountain, Inc.(b).................................... 10,229
121,500 Metzler Group, Inc.(b).................................... 3,394
298,550 NCO Group, Inc.(b)........................................ 6,661
212,500 NOVA Corp (Georgia)(b).................................... 6,999
422,700 Novacare Employee Services(b)............................. 3,699
624,500 Renaissance Worldwide, Inc.(b)............................ 11,748
232,300 SOS Staffing Services, Inc.(b)............................ 4,530
482,850 Staff Leasing, Inc.(b).................................... 13,761
502,600 Technology Solutions Co.(b)............................... 15,172
--------
134,703
--------
Computer Hardware (1.1%):
341,250 Apex PC Solutions, Inc.(b)................................ 8,574
--------
Computer Services (0.8%):
161,400 Quickresponse Services(b)................................. 5,725
--------
Computer Software & Peripherals (13.3%):
343,300 Aspen Technologies, Inc.(b)............................... 15,288
376,700 Axent Technologies, Inc.(b)............................... 9,276
346,050 Deltek Systems, Inc.(b)................................... 7,310
348,700 JDA Software Group, Inc.(b)............................... 15,746
490,000 Pegasystems, Inc.(b)...................................... 10,612
415,000 VERITAS Software Corp.(b)................................. 16,743
512,900 Visio Corp.(b)............................................ 24,042
--------
99,017
--------
Correctional Facilities (1.9%):
518,200 Wackenhut Corrections Corp.(b)............................ 12,566
235,500 Youth Services International, Inc.(b)..................... 1,693
--------
14,259
--------
Financial Services (7.2%):
170,600 DVI, Inc.(b).............................................. 3,636
558,100 Franchise Mortgage Acceptance Co.(b)...................... 12,278
567,580 Imperial Credit Industries, Inc.(b)....................... 11,990
242,950 Metris Cos., Inc. ........................................ 13,909
444,700 Sirrom Capital Corp. ..................................... 11,840
--------
53,653
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Funeral Services (1.1%):
347,500 Equity Corp. International(b)............................. $ 8,253
--------
Health Care - Services (14.0%):
236,000 Advanced Health Corp.(b).................................. 2,950
666,000 American Oncology Resources, Inc.(b)...................... 8,492
202,600 Boron, Lepore & Assoc., Inc.(b)........................... 5,977
323,050 Capital Senior Living Corp.(b)............................ 4,179
282,400 Carematrix Corp.(b)....................................... 6,531
183,550 Concentra Managed Care, Inc.(b)........................... 4,290
119,800 Healthcare Financial Partners, Inc.(b).................... 5,885
250,750 Medquist, Inc.(b)......................................... 11,002
464,800 NCS HealthCare, Inc., Class A(b).......................... 13,421
798,300 Orthodontic Centers of America, Inc.(b)................... 16,913
464,800 Parexel International Corp.(b)............................ 13,944
384,800 Serologicals Corp.(b)..................................... 11,352
--------
104,936
--------
Insurance (0.1%):
22,700 Annuity and Life Re(b).................................... 518
--------
Manufactured Housing (0.5%):
189,350 Modtech, Inc.(b).......................................... 3,716
--------
Medical Equipment & Supplies (1.5%):
92,400 Cryolife, Inc.(b)......................................... 1,525
206,600 Molecular Devices Corp.(b)................................ 3,125
135,700 Sabratek Corp.(b)......................................... 3,562
180,200 Schick Technologies, Inc.(b).............................. 3,322
--------
11,534
--------
Oilfield Services & Equipment (2.6%):
669,600 IRI International Corp.(b)................................ 8,663
295,100 Key Energy Group, Inc.(b)................................. 4,851
345,400 Omni Energy Services,(b).................................. 6,001
--------
19,515
--------
Pharmaceuticals (3.2%):
425,200 Dura Pharmaceuticals, Inc.(b)............................. 11,082
414,525 Jones Pharma Incorporation................................ 12,746
--------
23,828
--------
Printing & Publishing (1.6%):
232,450 Consolidated Graphics, Inc.(b)............................ 11,899
--------
Records Management (0.4%):
80,100 Lason, Inc.(b)............................................ 3,254
--------
Rental Equipment Furniture (3.0%):
432,600 Rental Service Corp.(b)................................... 11,220
411,700 Renter's Choice, Inc.(b).................................. 10,962
--------
22,182
--------
</TABLE>
70
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Small Capitalization Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Resorts & Entertainment (3.5%):
296,250 Family Golf Centers, Inc.(b).............................. $ 7,777
608,150 Signature Resorts, Inc.(b)................................ 9,426
414,300 Vistana, Inc.(b).......................................... 8,804
--------
26,007
--------
Restaurants (2.4%):
418,000 Landry's Seafood Restaurants(b)........................... 9,470
420,000 The Cheesecake Factory(b)................................. 8,479
--------
17,949
--------
Retail Stores (3.3%):
265,450 Insight Enterprises(b).................................... 8,295
227,500 Party City Corp.(b)....................................... 6,683
224,900 The Men's Warehouse, Inc.(b).............................. 9,586
--------
24,564
--------
Services (1.3%):
250,000 American Disposal Services(b)............................. 9,789
--------
Technology (2.1%):
204,600 Sanmina Corp.(b).......................................... 15,933
--------
Telecommunications - Services & Equipment (3.1%):
303,450 Pacific Gateway Exchange, Inc.(b)......................... 12,934
381,800 SmarTalk Teleservices, Inc.(b)............................ 7,016
223,700 USN Communications, Inc.(b)............................... 2,908
--------
22,858
--------
Transportation & Shipping (1.0%):
231,400 Eagle USA Airfreight, Inc.(b)............................. 7,535
--------
Wholesale Distribution (2.1%):
997,424 Brightpoint, Inc.(b)...................................... 15,772
--------
Total Common Stocks 679,218
--------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS (3.0%):
Canada (0.7%):
Computer Software (0.7%):
376,500 Discreet Logic, Inc.(b).................................. $ 5,271
--------
Israel (2.3%):
Computer Hardware (1.1%):
228,400 Nice Systems Ltd.(b)..................................... 8,337
--------
Computer Software (0.4%):
144,100 MEMCO Software, Inc.(b).................................. 3,206
--------
Medical Equipment & Supplies (0.7%):
188,300 ESC Medical Systems Ltd.(b).............................. 5,249
--------
16,792
--------
Total Foreign Common Stocks 22,063
--------
REPURCHASE AGREEMENTS (3.1%):
$23,533 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$24,138, FNMA ARM, 6.21%, 6/1/32, market value--
$24,138)................................................ 23,533
--------
Total Repurchase Agreements 23,533
--------
Total Investments (Cost $577,932)(a)--97.0% 724,814
Other assets in excess of liabilities 3.0% 22,315
--------
Total Net Assets--100.0% $747,129
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $17. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $182,398
Unrealized depreciation..................................... (35,533)
--------
Net unrealized appreciation................................. $146,865
========
</TABLE>
(b) Represents non-income producing securities.
71
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Mid Capitalization Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMON STOCKS (96.8%):
Apparel/Shoes (1.1%):
153,300 Brylane, Inc.(b)......................................... $ 7,282
---------
Broadcasting & Publishing (6.2%):
579,700 CanWest Global Communications Corp. ..................... 10,217
404,000 Chancellor Media Corp.(b)(c)............................. 16,892
128,600 Clear Channel Communications, Inc.(b)(c)................. 12,330
---------
39,439
---------
Building Products (1.1%):
259,100 Royal Group Technologies Ltd.(b)(c)...................... 6,980
---------
Business Services (7.4%):
269,600 BA Merchant Services, Inc.(b)............................ 4,870
232,500 Cintas Corp.............................................. 10,622
470,812 Paychex, Inc............................................. 16,949
421,400 SunGard Data Systems, Inc.(b)(c)......................... 14,380
---------
46,821
---------
Commercial Services (0.9%):
134,300 Central Parking Corp.(c)................................. 6,018
---------
Computer Software & Peripherals (12.3%):
287,600 BMC Software, Inc.(b)(c)................................. 13,248
385,700 Cadence Design Systems, Inc.(b)(c)....................... 13,595
257,900 Cambridge Technology Partners, Inc.(b)................... 12,935
234,600 CBT Group PLC(b)(c)...................................... 11,671
260,000 Parametric Technology Corp.(b)(c)........................ 7,971
267,900 PeopleSoft, Inc.(b)(c)................................... 11,704
163,350 VERITAS Software Corp.(b)................................ 6,590
---------
77,714
---------
Consumer Goods & Services (1.0%):
197,000 U.S. Rentals, Inc.(b).................................... 6,390
---------
Correctional Facilities (0.5%):
137,000 Corrections Corp. of America(b).......................... 3,117
---------
Data Processing & Reproduction (3.3%):
276,700 Fiserv, Inc.(b).......................................... 16,316
112,800 Sterling Commerce, Inc.(b)(c)............................ 4,477
---------
20,793
---------
Educational Services (2.4%):
162,150 Apollo Group, Inc.(b)(c)................................. 5,179
332,475 Sylvan Learning Systems, Inc.(b)......................... 10,140
---------
15,319
---------
Electrical & Electronic (2.0%):
256,800 Analog Devices, Inc.(b)(c)............................... 6,340
243,260 Molex, Inc............................................... 6,340
---------
12,680
---------
COMMON STOCKS, CONTINUED:
Financial Services (5.8%):
73,100 CMAC Investment Corp..................................... $ 4,423
255,150 Concord EFS, Inc.(b)..................................... 8,133
258,200 Finova Group, Inc........................................ 14,281
226,200 Nationwide Financial Services............................ 9,826
---------
36,663
---------
Funeral Services (4.7%):
484,400 Service Corp. International.............................. 19,800
375,100 Stewart Enterprises...................................... 10,128
---------
29,928
---------
Health & Personal Care (0.8%):
195,400 Alberto-Culver Co.(c).................................... 5,276
---------
Health Care - Services (5.4%):
146,800 Health Care & Retirement Corp.(b)........................ 5,679
661,687 Health Management Associates, Inc.(b)(c)................. 19,726
185,000 Quintiles Transnational Corp.(b)(c)...................... 8,996
---------
34,401
---------
Hotels & Lodging (1.2%):
257,500 Capstar Hotel(b)(c)...................................... 7,532
---------
Insurance (2.8%):
367,800 SunAmerica, Inc.(c)...................................... 17,884
---------
Manufacturing - Consumer Goods (2.3%):
300,200 Newell Co................................................ 14,485
---------
Medical Equipment & Supplies (5.3%):
142,000 Guidant Corp............................................. 9,150
210,600 Henry Schein, Inc.(b).................................... 8,108
470,700 Omnicare, Inc.(c)........................................ 16,504
---------
33,762
---------
Medical - Hospital Services (1.0%):
214,000 Total Renal Care Holdings, Inc.(b)(c).................... 6,567
---------
Oilfield Services & Equipment (3.7%):
93,200 Camco International, Inc.(c)............................. 6,501
137,400 Cooper Cameron Corp.(b).................................. 8,175
480,400 Newpark Resources, Inc.(b)............................... 8,737
---------
23,413
---------
Pharmaceuticals (2.0%):
119,500 Biovail Corp. International(b)(c)........................ 4,056
192,500 Dura Pharmaceuticals, Inc.(b)(c)......................... 5,017
123,300 Jones Pharma Incorporation(c)............................ 3,791
---------
12,864
---------
Resorts & Entertainment (2.1%):
132,700 Royal Caribbean Cruises Ltd.(c).......................... 9,247
253,800 Signature Resorts, Inc.(b)(c)............................ 3,934
---------
13,181
---------
</TABLE>
72
<PAGE>
- -------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- -------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Mid Capitalization Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- ---------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Retail Stores (6.7%):
284,843 Consolidated Stores Corp.(b)(c)......................... $ 10,877
222,187 Dollar General Corp.(c)................................. 8,471
184,400 Linens 'n Things, Inc.(b)............................... 5,924
452,200 MSC Industrial Direct Co., Inc.(b)...................... 12,069
179,200 Office Depot, Inc.(b)(c)................................ 5,286
---------
42,627
---------
Savings & Loans Thrift (1.4%):
355,600 Ocwen Financial Services Corp.(b)....................... 8,668
---------
Semiconductors (0.9%):
221,600 Vitesse Semiconductor Corp.(b).......................... 5,679
---------
Technology (1.9%):
60,000 Sanmina Corp.(b)(c)..................................... 4,673
138,600 Uniphase Corp.(b)(c).................................... 7,068
---------
11,741
---------
Technology - Software (1.8%):
238,950 Visio Corp.(b).......................................... 11,201
---------
Telecommunications - Services & Equipment (4.2%):
181,000 Electric Lightwave(b)................................... 2,466
156,100 McLeod USA, Inc.(b)..................................... 6,478
194,500 MRV Communications(b)(c)................................ 4,522
205,800 Qwest Communications International, Inc.(b)(c).......... 6,804
457,500 West TeleServices Corp.(b).............................. 6,291
---------
26,561
---------
Transportation & Shipping (1.2%):
179,100 Kansas City Southern Industries, Inc. .................. 7,589
---------
Wholesale Distribution (1.7%):
335,200 Brightpoint, Inc.(b)(c)................................. 5,300
214,300 Richfood Holdings, Inc.................................. 5,237
---------
10,537
---------
COMMON STOCKS, CONTINUED:
Wholesale Distribution - Pharmaceuticals (1.7%):
121,375 Cardinal Health, Inc.(c)....................... $ 10,818
---------
Total Common Stocks 613,930
---------
REPURCHASE AGREEMENTS (2.2%):
$ 14,269 Prudential Securities, 5.60%, 6/1/98,
(Collateralized by $14,344, FNMA ARM,
6.64%, 12/1/27, market value--$14,631)........ 14,269
---------
Total Repurchase Agreements 14,269
---------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (32.4%):
Commercial Paper (9.8%):
17,310 KZH Holding Corp., 5.13%, 6/29/98.............. 17,220
30,000 McKesson Corp.................................. 29,985
15,000 Nomura Holdings America, 5.71%, 6/11/98........ 14,887
---------
62,092
---------
Floating Rate Note (15.0%):
20,000 Bankers Trust New York, 5.64%*, 9/11/98........ 19,991
20,000 Chrylser Financial Corp, 5.64%*,
2/10/99....................................... 20,003
15,000 Household, 5.66%*, 1/15/99..................... 15,000
15,000 Merrill Lynch & Co., 5.75%* 8/11/98 ........... 14,997
25,000 Sigma Finance Inc., 5.69%*, 9/9/98............. 25,001
---------
94,992
---------
Repurchase Agreements (7.6%):
48,446 PaineWebber, 5.68%, 6/1/98, (See
Significant Accounting Policies,
Lending Portfolio Securities in the
Notes to Financial Statements for
collateral description)....................... 48,446
---------
Total Short Term Securities Purchased with Collateral 205,530
---------
Total Investments (Cost $638,711)(a)--131.4% 833,729
Liabilities in excess of other assets (31.4)% (199,458)
---------
Total Net Assets--100.0% $ 634,271
=========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1998.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $5. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................. $ 217,327
Unrealized depreciation.................................. (22,314)
---------
Net unrealized appreciation.............................. $ 195,013
=========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1998.
73
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Large Capitalization Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- ---------
<C> <S> <C>
COMMON STOCKS (98.4%):
Banking (1.4%):
78,100 State Street Corp.(c).................................... $ 5,384
---------
Broadcasting/Cable (0.2%):
9,500 Clear Channel Communications, Inc.(b)(c)................. 911
---------
Business Services (1.1%):
67,100 Automatic Data Processing, Inc........................... 4,269
---------
Chemicals (1.5%):
102,300 Monsanto Co.............................................. 5,665
---------
Computer Hardware (1.8%):
87,800 EMC Corp.(b)............................................. 3,639
85,600 Sun Microsystems, Inc.(b)(c)............................. 3,429
---------
7,068
---------
Computer Software & Peripherals (12.5%):
78,400 America Online, Inc.(b)(c)............................... 6,532
105,400 BMC Software, Inc.(b)(c)................................. 4,855
102,600 Cadence Design Systems, Inc.(b)(c)....................... 3,617
163,650 Cisco Systems, Inc.(b)(c)................................ 12,374
32,300 HBO & Company............................................ 1,864
119,600 Microsoft, Inc.(b)....................................... 10,144
109,000 Parametric Technology Corp.(b)(c)........................ 3,342
139,600 PeopleSoft, Inc.(b)(c)................................... 6,099
---------
48,827
---------
Consumer Goods & Services (4.2%):
57,064 Cendant Corp.(b)......................................... 1,238
71,800 Clorox Co................................................ 5,995
108,200 Procter & Gamble Co.(c).................................. 9,082
---------
16,315
---------
Cosmetics/Personal Care (1.0%):
32,600 Gillette Co.............................................. 3,818
---------
Diversified Operations (3.2%):
125,600 Cognizant Corp. ......................................... 6,689
107,800 Tyco International Ltd. ................................. 5,969
---------
12,658
---------
Electrical & Electronic (4.3%):
69,400 Applied Materials, Inc.(b)(c)............................ 2,221
94,500 Emerson Electric Co. .................................... 5,741
103,900 General Electric Co...................................... 8,662
---------
16,624
---------
Environmental Services (1.5%):
120,000 USA Waste Services, Inc. (b)(c).......................... 5,663
---------
COMMON STOCKS, CONTINUED:
Financial Services (10.3%):
88,200 American Express Co. .................................... $ 9,051
99,700 Associates First Capital Corp............................ 7,459
123,200 Federal Home Loan Mortgage Corp. ........................ 5,606
46,500 Household International, Inc.(c)......................... 6,292
241,275 MBNA Corp.(c)............................................ 7,645
86,800 Newcourt Credit Group, Inc. ............................. 4,264
---------
40,317
---------
Food & Beverage (1.4%):
71,300 The Coca-Cola Co......................................... 5,588
---------
Food Products & Services (3.3%):
105,400 Bestfoods................................................ 5,949
186,600 Safeway, Inc.(b)(c)...................................... 6,799
---------
12,748
---------
Funeral Services (1.5%):
141,500 Service Corp. International.............................. 5,784
---------
Health Care - Services (1.0%):
138,900 HEALTHSOUTH Corp.(b)(c).................................. 3,941
---------
Hotels & Lodging (1.5%):
152,600 Marriott International, Inc. Class A(c).................. 5,303
19,075 Sedexho Marriott Services................................ 542
---------
5,845
---------
Industrial Goods & Services (1.4%):
59,800 United Technologies Corp................................. 5,621
---------
Insurance (8.2%):
76,000 American International Group, Inc. ...................... 9,411
97,100 Conseco, Inc.(c)......................................... 4,527
88,100 Marsh & McLennan Cos., Inc............................... 7,714
110,800 MGIC Investment Corp.(c)................................. 6,641
80,250 SunAmerica, Inc.(c)...................................... 3,902
---------
32,195
---------
Medical Equipment & Supplies (2.2%):
71,000 Guidant Corp............................................. 4,575
73,800 Medtronic, Inc.(c)....................................... 4,105
---------
8,680
---------
Office Equipment & Services (2.2%):
59,300 Hewlett-Packard Co....................................... 3,684
48,400 Xerox Corp............................................... 4,973
---------
8,657
---------
Oil & Gas (0.8%):
41,200 Schlumberger Ltd.(c)..................................... 3,216
---------
</TABLE>
74
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Large Capitalization Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Pharmaceuticals (9.1%):
128,800 Eli Lilly & Co........................................... $ 7,913
50,200 Johnson & Johnson(c)..................................... 3,467
126,200 Pfizer, Inc.............................................. 13,227
171,000 Warner-Lambert Co.(c).................................... 10,912
---------
35,519
---------
Resorts & Entertainment (2.0%):
116,100 Carnival Cruise Lines.................................... 7,866
---------
Retail Stores (8.0%):
64,000 CVS Corp................................................. 4,492
134,650 Home Depot, Inc.(c)...................................... 10,579
122,500 Lowe's Cos.(c)........................................... 9,700
184,900 Walgreen Co.(c).......................................... 6,506
---------
31,277
---------
Semiconductors (0.9%):
39,700 KLA-Tencor Corp.(b)...................................... 1,345
39,600 Texas Instruments........................................ 2,034
---------
3,379
---------
Technology (1.4%):
76,900 Intel Corp............................................... 5,494
---------
Telecommunications - Services & Equipment (8.7%):
122,800 AirTouch Communications, Inc.(b)(c)...................... 5,848
170,400 Lucent Technologies, Inc. ............................... 12,088
107,100 Nextel Communications, Inc., Series A(b)................. 2,524
72,300 Teleport Communications Group, Inc.(b)................... 4,044
55,900 Tellabs, Inc.(b)(c)...................................... 3,841
122,100 WorldCom, Inc.(b)(c)..................................... 5,556
---------
33,901
---------
Wholesale Distribution - Pharmaceuticals (1.8%):
77,350 Cardinal Health, Inc.(c)................................. 6,894
---------
Total Common Stocks 384,124
---------
REPURCHASE AGREEMENTS (1.6%):
$ 6,076 Prudential Securities, 5.60%, 6/1/98, (Collateralized
by $6,129, FNMA ARM, 6.87%, 10/1/26, market value--
$6,228)............................................... $ 6,076
---------
Total Repurchase Agreements 6,076
---------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (28.9%):
Commercial Paper (14.0%):
12,041 KZH Holding Corp., 5.63%, 6/29/98...................... 11,979
18,000 McKesson Corp., 5.70%, 6/1/98.......................... 17,993
10,000 Nomura Holdings America, 5.71%, 6/11/98................ 9,924
15,000 PHH Corp., 5.66%, 6/10/98.............................. 14,967
---------
54,863
---------
Floating Rate Note (9.0%):
10,000 Bankers Trust, 5.64%*, 9/11/98......................... 9,996
5,000 Household, 5.66%*, 1/15/99............................. 5,000
10,000 Merril Lynch & Co., 5.77%*, 6/12/98.................... 10,000
10,000 Sigma Finance, Inc., 5.69%*, 9/9/98.................... 9,999
---------
34,995
---------
Repurchase Agreements (5.9%):
23,076 Paine Webber, 5.68%, 6/1/98, (See Significant
Accounting Policies, Lending Portfolio Securities in
the Notes to Financial Statements for collateral
description).......................................... 23,076
---------
Total Short Term Securities Purchased with Collateral 112,934
---------
Total Investments (Cost $353,466)(a)--128.9% 503,134
Liabilities in excess of other assets (28.9)% (112,848)
---------
Total Net Assets--100.0% $ 390,286
=========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1998.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $61. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $152,990
Unrealized depreciation..................................... (3,383)
--------
Net unrealized appreciation................................. $149,607
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1998.
75
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
International Discovery Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (90.7%):
ARGENTINA (0.9%):
Oil & Gas Exploration, Production & Services (0.9%):
147,000 Sociedad Anonima, ADR.................................... $ 4,566
--------
AUSTRALIA (2.2%):
Construction (0.3%):
485,000 Leighton Holdings........................................ 1,640
--------
Diversified Operations (0.5%):
269,684 Wesfarmers(b)............................................ 2,187
--------
Pharmaceuticals (0.9%):
651,500 CSL Ltd.(b).............................................. 4,387
--------
Real Estate (0.5%):
106,600 Lend Lease Corp. Ltd.(b)................................. 2,277
--------
10,491
--------
AUSTRIA (0.4%):
Engineering (0.4%):
13,300 VA Technologie AG........................................ 1,802
--------
BELGIUM (2.1%):
Electronic Components/Instruments (0.7%):
13,000 Barco N.V. .............................................. 3,329
--------
Retail Stores/Catalog (1.4%):
11,000 Colruyt N.V.............................................. 7,050
--------
10,379
--------
CANADA (1.2%):
Electronic Components/Instruments (0.6%):
333,100 CAE, Inc. ............................................... 2,782
--------
Manufacturing - Consumer Goods (0.6%):
120,000 Bombardier, Inc., Class B................................ 3,088
--------
5,870
--------
CHILE (0.5%):
Telecommunications (0.5%):
102,225 Cia de Telecomunicaciones de Chile SA, ADR............... 2,268
--------
DENMARK (0.9%):
Pharmaceuticals (0.5%):
15,500 Novo-Nordisk AS, Series B................................ 2,441
--------
Textile Products (0.4%):
24,000 Carli Gry International.................................. 1,891
--------
4,332
--------
FINLAND (3.7%):
Computer Software (1.1%):
25,000 TT Tieto Oy--B Shares.................................... 5,491
--------
Diversified Operations (0.6%):
48,700 Huhtamaki Group.......................................... 2,688
--------
Telecommunications - Services & Equipment (2.0%):
150,000 Nokia AB, Class A, ADR................................... 9,740
--------
17,919
--------
FRANCE (10.3%):
Broadcasting & Publishing (0.6%):
20,000 Television Francaise..................................... $ 2,821
--------
Electrical & Electronic (2.4%):
54,000 Alcatel Alstholm......................................... 11,553
--------
Electrical Equipment (0.6%):
6,300 Le Carbone Lorraine(b)................................... 2,875
--------
Engineering (2.6%):
62,400 Altran Technologies...................................... 12,777
--------
Machinery & Equipment (1.7%):
100,000 Sidel SA................................................. 8,140
--------
Medical Equipment & Supplies (0.7%):
8,461 Essilor International.................................... 3,606
--------
Retail Stores/Catalog (1.6%):
9,700 Pinault-Printemps-Redoute SA............................. 7,985
--------
49,757
--------
GERMANY (6.3%):
Diversified Operations (1.5%):
113,000 Siemens AG............................................... 7,416
--------
Engineering (2.6%):
13,525 Mannesmann AG............................................ 12,583
--------
Manufacturing - Consumer Goods (2.2%):
59,835 Adidas AG................................................ 10,565
--------
30,564
--------
GREECE (1.0%):
Beverages & Tobacco (0.5%):
66,000 Hellenic Bottling Co. SA................................. 2,211
--------
Telecommunications - Services & Equipment (0.5%):
94,000 Hellenic Telecommunication Organization.................. 2,763
--------
4,974
--------
HONG KONG (1.7%):
Automobiles (0.4%):
4,704,000 Qingling Motors Co.(b)................................... 1,851
--------
Electrical & Electronic (0.5%):
643,000 Johnson Electric Holdings Ltd. .......................... 2,490
--------
Food Products & Services (0.4%):
2,100,000 Ng Fung Hong Ltd.(b)..................................... 1,789
--------
Utilities - Electrical & Gas (0.4%):
1,560,724 Hong Kong & China Gas Co. Ltd.(b)........................ 2,044
--------
8,174
--------
ISRAEL (0.8%):
Pharmaceuticals (0.8%):
93,600 Teva Pharmaceutical Industries, Ltd. .................... 3,838
--------
</TABLE>
76
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
International Discovery Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
ITALY (3.1%):
Electronic Components/Instruments (0.5%):
108,000 Gewiss SpA............................................... $ 2,459
--------
Jewelry (1.1%):
887,200 Bulgari SpA.............................................. 5,277
--------
Medical Equipment & Supplies (0.6%):
78,000 Safilo SpA............................................... 2,930
--------
Telecommunications - Services & Equipment (0.9%):
750,000 Telecom Italia Mobile SpA................................ 4,438
--------
15,104
--------
JAPAN (16.7%):
Computer Software (1.9%):
115,000 TDK Corp. ............................................... 9,030
--------
Consumer Electronics (1.4%):
81,000 Sony Corp. .............................................. 6,840
--------
Electrical & Electronic (3.0%):
40,500 Keyence Corp. ........................................... 4,878
95,000 Rohm Corp. .............................................. 9,873
--------
14,751
--------
Electronic Components/Instruments (1.1%):
350,000 Omron Corp.(b)........................................... 5,279
--------
Food Products & Services (0.7%):
102,000 Matsumotokiyoshi......................................... 3,511
--------
Machinery & Equipment (0.1%):
8,600 Union Tool(b)............................................ 304
--------
Manufacturing - Consumer Goods (3.6%):
318,000 Canon, Inc............................................... 7,573
553,000 Casio Computer........................................... 5,148
130,000 Fuji Photo Film Ltd. .................................... 4,400
--------
17,121
--------
Office Equipment & Services (0.9%):
383,000 Ricoh Co. Ltd. .......................................... 4,135
--------
Pharmaceuticals (3.2%):
233,000 Sankyo Co. Ltd. ......................................... 5,616
376,000 Takeda Chemical Industries(b)............................ 9,715
--------
15,331
--------
Toys (0.8%):
44,000 Nintendo(b).............................................. 4,112
--------
80,414
--------
MEXICO (1.9%):
Beverages & Tobacco (0.8%):
119,560 Fomento Economico ADR.................................... 3,974
--------
Brewery (0.4%):
62,000 Panamerican Beverages ADR................................ 2,096
--------
MEXICO, CONTINUED:
Diversified Operations (0.7%):
644,000 Grupo Carso SA de CV..................................... $ 3,262
--------
9,332
--------
NETHERLANDS (7.9%):
Broadcasting & Publishing (1.4%):
49,943 Wolters Kluwer NV........................................ 7,023
--------
Commercial Services (1.3%):
124,960 Getronics NV............................................. 6,220
--------
Electrical & Electronic (0.5%):
54,400 Draka Holding............................................ 2,329
--------
Engineering (1.1%):
143,111 Internatio-Muller NV..................................... 5,164
--------
Office Equipment & Services (3.6%):
152,984 Ahrend................................................... 4,919
303,200 Oce Van Grinten(b)....................................... 12,752
--------
17,671
--------
38,407
--------
NEW ZEALAND (0.4%):
Appliances & Household Products (0.4%):
692,679 Fisher & Paykel Industries Ltd........................... 1,984
--------
PHILIPPINES (0.5%):
Telecommunications (0.5%):
95,000 Philippine Long Distance--Sp ADR(b)...................... 2,411
--------
PORTUGAL (2.0%):
Telecommunications (2.0%):
183,000 Portugal Telecom SA...................................... 9,653
--------
SOUTH AFRICA (1.5%):
Beverages & Tobacco (0.4%):
75,000 South African Breweries Ltd.(b).......................... 2,115
--------
Insurance (0.5%):
80,000 Liberty Life Association of Africa(b).................... 2,219
--------
Investment Company (0.6%):
427,550 Dimension Data Holdings Ltd.(b).......................... 2,861
--------
7,195
--------
SPAIN (3.2%):
Apparel/Shoes (0.7%):
150,000 Cortefiel SA(b).......................................... 3,400
--------
Beverages & Tobacco (1.0%):
225,000 Tabacalera SA(b)......................................... 4,855
--------
Commercial Services (1.5%):
589,269 Prosegur, Cia de Seguridad SA(b)......................... 7,458
--------
15,713
--------
SWEDEN (2.5%):
Building Products (0.4%):
99,300 Lindab AB--Class B....................................... 1,902
--------
</TABLE>
77
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
International Discovery Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SECURITY MARKET
SHARES DESCRIPTION VALUE
---------- --------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
SWEDEN, CONTINUED:
Machinery & Equipment (1.6%):
270,000 Atlas Copco AB........................................... $ 7,827
--------
Metals (0.4%):
55,000 Assa Abloy AB--Class B................................... 2,156
--------
11,885
--------
SWITZERLAND (5.2%):
Food Products & Services (2.4%):
5,430 Nestle SA................................................ 11,652
--------
Pharmaceuticals (2.8%):
3,350 Novartis AG.............................................. 5,682
779 Roche Holdings AG........................................ 8,027
--------
13,709
--------
25,361
--------
UNITED KINGDOM (13.8%):
Aerospace/Defense (2.3%):
882,400 British Aerospace PLC(b)................................. 7,813
187,000 Cobham PLC(b)............................................ 3,732
--------
11,545
--------
Air Transportation/Related (1.0%):
669,000 Airtours PLC(b).......................................... 4,991
--------
Appliances & Household Products (0.2%):
211,000 D.F.S. Furniture Co. PLC(b).............................. 874
--------
Building Products (1.2%):
1,819,100 Polypipe PLC............................................. 5,592
--------
Computer Software (1.5%):
242,857 Logica PLC(b)............................................ 7,158
--------
Diversified Operations (1.0%):
229,400 Bodycote International(b)................................ 4,695
--------
Engineering (1.7%):
333,000 Siebe PLC................................................ 8,183
--------
Food Products & Services (1.6%):
400,000 Compass Group PLC........................................ 7,824
--------
Machinery & Equipment (1.0%):
809,100 TT Group PLC............................................. 4,882
--------
Manufacturing - Consumer Goods (1.2%):
2,874,800 Halma PLC(b)............................................. $ 6,047
--------
Metals (1.1%):
522,000 Johnson Matthey PLC...................................... 5,261
--------
67,052
--------
Total Common Stocks 439,445
--------
PREFERRED STOCKS (4.7%):
BRAZIL (0.5%):
Banking (0.5%):
4,320,000 Banco Itau S.A........................................... 2,592
--------
GERMANY (4.2%):
Business Services (2.3%):
20,000 SAP AG................................................... 11,078
--------
Consumer Goods & Services (0.6%):
3,000 Wella.................................................... 2,886
--------
Medical Equipment & Supplies (1.3%):
30,300 Fresenius AG............................................. 6,458
--------
20,422
--------
Total Preferred Stocks 23,014
--------
RIGHTS - FOREIGN SECURITIES (0.0%):
HONG KONG (0.0%):
Gas & Electric Utility (0.0%):
70,942 Hong Kong & China Gas Co. Ltd............................ --
--------
Total Rights - Foreign Securities --
--------
INVESTMENT COMPANIES (4.5%):
6,052,915 Parkstone Government Obligations Fund.................... 6,053
15,851,798 Parkstone Prime Obligations Fund......................... 15,852
--------
Total Investment Companies 21,905
--------
Total Investments (Cost $358,739)(a)--99.9% 484,364
--------
Other assets in excess of liabilities--0.1% 692
--------
Total Net Assets--100.0% $485,056
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $8. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $136,700
Unrealized depreciation..................................... (11,083)
--------
Net unrealized appreciation................................. $125,617
========
</TABLE>
(b) Represents non-income producing securities.
78
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Limited Maturity Bond Fund
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. TREASURY NOTES (46.8%):
$ 3,000 6.00%, 6/30/99............................................ $ 3,015
2,200 5.88%, 8/31/99............................................ 2,209
12,000 5.75%, 9/30/99............................................ 12,029
5,000 5.38%, 1/31/00(b)......................................... 4,987
15,000 5.50%, 4/15/00(b)......................................... 14,993
15,000 6.13%, 9/30/00............................................ 15,188
38,210 6.50%, 8/31/01(b)......................................... 39,226
--------
Total U.S. Treasury Notes 91,647
--------
CORPORATE BONDS (32.1%):
Euro Dollar (7.3%):
3,750 British Gas & Finance, 8.38%, 9/8/99...................... 3,888
5,000 National Power Co. PLC, 7.12%, 7/11/01.................... 5,145
5,000 SNCB Belgium Rail, 8.25%, 2/2/00.......................... 5,178
--------
14,211
--------
Financial Services (11.5%):
5,000 AT&T Capital Corp., 6.41%, 8/13/99........................ 5,001
2,500 Beneficial Corp., 6.03%, 1/14/03.......................... 2,475
4,000 ERAC USA Finance Co, 7.00%, 6/15/00....................... 4,045
5,000 Lehman Brothers Holdings, 6.89%, 10/10/00................. 5,088
5,000 Main Place Real Estate Investment, 5.65%, 3/25/00......... 5,000
1,000 Wachovia Bank, 6.70%, 4/14/99............................. 1,006
--------
22,615
--------
Industrial Goods & Services (2.4%):
4,700 Ingersoll-Rand, 6.34%, 12/3/01............................ 4,741
--------
Industrials (2.5%):
5,000 Occidental Petroleum, 5.85%, 11/9/98...................... 4,987
--------
Oil & Gas Exploration, Production & Services (4.4%):
8,614 Amresco Snimt, 7.55%, 6/26/27............................. 8,624
--------
Telecommunications (2.6%):
5,000 US West Communications, 6.13%, 11/21/00................... 5,006
--------
Yankee (1.4%):
2,477 Quebec Province, 13.00%, 10/1/13.......................... 2,647
--------
Total Corporate Bonds 62,831
--------
ASSET BACKED SECURITIES (10.6%):
2,211 Alps, 7.15%, 9/15/04...................................... 2,228
3,800 Champion Home Equity Loan Trust, Series 1997-2, Class A2,
6.49%, 1/25/13........................................... 3,805
3,000 EQCC Home Equity Loan Trust, 1998-1, A3f, 6.23%, 12/15/12. 2,998
3,000 First Plus Home Loan Trust, Series 1998-2, Class A3,
6.32%*, 11/10/13......................................... 3,008
$ 893 GE Capital Services, Inc., 7.50%, 5/25/20................. $ 893
3,796 Green Tree Financial Corp., 6.55%, 7/15/28................ 3,824
1,211 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09.... 1,232
646 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08............ 649
1,414 Lehman Mortgage Trust, 8.00%, 3/20/99, Series 91-92....... 1,433
617 Structured Asset Securities Co., 7.50%, 8/25/26........... 628
--------
Total Asset Backed Securities 20,698
--------
FLOATING RATE NOTES (3.9%):
5,000 AT&T Universal Credit Card Master Trust, 5.79%*,
4/19/04.................................................. 5,000
2,574 HFC Home Equity Loan, 6.39%*, 10/20/07.................... 2,591
--------
Total Floating Rate Notes 7,591
--------
REPURCHASE AGREEMENTS (5.2%):
10,185 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$10,460, FNMA ARM, 6.22%, 7/1/34, market value--
$10,460)................................................. 10,185
--------
Total Repurchase Agreements 10,185
--------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (24.0%):
Commercial Paper (12.8%):
7,651 Centerior Fuel Corp., 5.70%, 6/1/98....................... 7,647
7,500 Engelhard Corp., 5.77%, 6/1/98............................ 7,496
10,000 Glencore Asset Funding, 5.63%, 6/4/98..................... 9,954
--------
25,097
--------
Repurchase Agreements (11.2%):
21,885 Paine Webber, 5.68%, 6/1/98, (See Significant Accounting
Policies, Lending Portfolio Securities in the Notes to
Financial Statements for collateral description)......... 21,885
--------
Total Short Term Securities Purchased with collateral 46,982
--------
Total Investments (Cost $239,783)(a)--122.5% 239,934
Liabilities in excess of other assets (22.5)% (44,101)
--------
Total Net Assets--100.0% $195,833
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
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 May 31, 1998.
(a) Represents cost for federal income tax purposes and differs from market
value by net unrealized depreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $ 490
Unrealized depreciation........................................ (339)
-----
Net unrealized depreciation.................................... $ 151
=====
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1998.
79
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Intermediate Government Obligations Fund
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. GOVERNMENT AGENCY BONDS (23.7%):
Federal Home Loan Bank (7.9%):
$10,000 5.63%, 3/19/01............................................. $ 9,975
5,000 5.53%, 1/15/03............................................. 4,953
--------
14,928
--------
Federal Home Loan Mortgage Corp. (2.8%):
5,000 7.44%, 9/20/06, Callable 9/20/01 @ 100..................... 5,220
--------
Federal National Mortgage Association (13.0%):
10,000 5.63%, 3/15/01............................................. 9,988
14,000 6.39%, 9/24/07............................................. 14,463
--------
24,451
--------
Total U.S. Government Agency Bonds 44,599
--------
U.S. TREASURY NOTES (40.2%):
2,950 5.50%, 12/31/00............................................ 2,946
18,300 6.63%, 7/31/01(b).......................................... 18,852
15,360 7.88%, 8/15/01(b).......................................... 16,375
4,900 6.50%, 8/31/01............................................. 5,030
8,280 6.13%, 12/31/01(b)......................................... 8,419
9,015 6.63%, 3/31/02(b).......................................... 9,329
13,480 7.00%, 7/15/06(b).......................................... 14,642
--------
Total U.S. Treasury Notes 75,593
--------
U.S. TREASURY STRIPS (7.8%):
5,700 0.00%, 5/15/99............................................. 5,413
10,100 0.00%, 2/15/00............................................. 9,207
--------
Total U.S. Treasury Strips 14,620
--------
GOVERNMENT OBLIGATIONS (12.3%):
Mortgage Pass Thru's (12.0%):
Federal Home Loan Mortgage Corp. (0.9%):
1,131 8.75%, 4/1/17.............................................. 1,200
494 8.00%, 5/1/17.............................................. 516
--------
1,716
--------
Federal National Mortgage Assoc. (6.3%):
722 8.75%, 8/1/09.............................................. 757
2,978 9.00%, 08/01/09-01/01/10................................... 3,141
1,312 11.50%, 5/1/10............................................. 1,411
2,950 13.00%, 8/15/15............................................ 3,550
1,306 8.25%, 7/1/17.............................................. 1,356
1,608 8.50%, 2/1/25.............................................. 1,678
--------
11,893
--------
Government National Mortgage Assoc. (4.8%):
2,570 9.00%, 9/15/04-7/15/09..................................... 2,755
5,765 9.50%, 12/20/13-12/20/22................................... 6,188
--------
8,943
--------
22,552
--------
GOVERNMENT OBLIGATIONS, CONTINUED:
Guaranteed Export Trust (0.3%):
$ 478 6.61%, 6/15/99, Series 94-D................................ $ 482
--------
Total Government Obligations 23,034
--------
ASSET BACKED SECURITIES (0.6%):
1,049 GE Capital Services, Inc., 7.50%, 5/25/20.................. 1,050
--------
Total Asset Backed Securities 1,050
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (11.1%):
Federal Home Loan Mortgage Corp. (1.6%):
3,000 7.50%, 4/15/21, Series 1343--K............................. 3,102
--------
Federal National Mortgage Association (7.5%):
1,528 7.50%, 3/25/21, Series 1992--171 ZC........................ 1,578
2,287 7.75%, 3/25/21, Series 1992-1.............................. 2,389
2,500 8.00%, 9/25/21, Series 1992--117 LA........................ 2,597
7,000 7.50%, 8/25/22, Series 1994-93............................. 7,346
--------
13,910
--------
Ryland Acceptance Corp. (2.0%):
3,560 9.00%, 7/1/16.............................................. 3,788
--------
Total Collateralized Mortgage Obligations 20,800
--------
REPURCHASE AGREEMENTS (3.1%):
5,846 Prudential Securities, 5.60%, 6/1/98, (Collateralized
by $5,965, FNMA ARM, 6.68%, 11/1/27, market value--
$5,995)................................................... 5,846
--------
Total Repurchase Agreements 5,846
--------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (18.8%):
Repurchase Agreements (18.8%):
35,420 Paine Webber, 5.63%, 6/1/98, (Collateralized by
$6,389, Glendale Federal Bank, 5.82%, 11/25/29,
market value--$6,533, by $3,277, Prudential Home
Mortgage Securities, 5.30%, 10/25/23, market value--
$3,298, by $47,488, FNMA Strips, 0.00%, 12/1/24-
8/1/26, market value--$26,394)............................ 35,420
--------
Total Short Term Securities Purchased with Collateral 35,420
--------
Total Investments (Cost $220,500)(a)--117.5% 220,962
--------
Liabilities in excess of other assets (17.5)% (32,933)
--------
Total Net Assets--100.0% $188,029
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $88. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $ 894
Unrealized depreciation........................................ (520)
-----
Net unrealized appreciation.................................... $ 374
=====
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1998.
80
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
U.S. Government Income Fund
(Amounts in Thousands)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
GOVERNMENT OBLIGATIONS (68.4%):
Federal Home Loan Mortgage Corp. (10.8%):
$ 3,434 8.00%, 9/1/02-3/1/22...................................... $ 3,628
112 8.25%, 8/1/17............................................. 118
5,482 8.50%, 3/1/06-4/1/26...................................... 5,804
1,305 8.75%, 6/1/16-8/1/17...................................... 1,384
3,847 9.00%, 4/1/06-9/1/20...................................... 4,135
258 9.25%, 8/1/13-11/1/19..................................... 278
4,620 9.50%, 3/1/01-12/1/22..................................... 4,939
719 9.75%, 11/1/08-4/1/09..................................... 780
1,585 10.00%, 7/1/00-9/1/16..................................... 1,691
881 10.50%, 7/1/00-11/1/02.................................... 932
325 11.5%, 3/1/99-1/1/01...................................... 347
477 12.00%, 10/1/99-11/1/01................................... 513
1,173 12.25%, 8/1/15............................................ 1,355
140 12.50%, 7/1/99-7/1/00..................................... 151
--------
26,055
--------
Federal National Mortgage Association (3.8%):
916 7.50%, 9/1/22-11/1/22..................................... 948
1,060 8.00%, 12/1/17-3/1/23..................................... 1,110
2,413 8.50%, 5/1/08-9/1/12...................................... 2,548
788 9.00%, 6/1/09-10/1/19..................................... 842
188 10.00%, 6/1/21............................................ 204
462 10.50%, 9/1/00-5/1/04..................................... 490
513 11.00%, 8/1/00-9/1/06..................................... 546
315 11.25%, 6/1/13-12/1/15.................................... 352
167 11.50%, 11/1/98-2/1/01.................................... 180
153 12.00%, 1/1/99-9/1/00..................................... 167
1,211 12.50%, 2/1/00-5/1/15..................................... 1,389
411 14.00%, 11/1/12........................................... 457
--------
9,233
--------
Government National Mortgage Association (32.6%):
439 6.50%, 11/15/23-12/15/23.................................. 440
1,164 7.00%, 3/15/23-11/15/23................................... 1,188
1,032 7.50%, 5/15/22-12/15/23................................... 1,070
3,303 8.00%, 4/15/17-5/20/24.................................... 3,456
1,795 8.25%, 1/15/05-6/15/16.................................... 1,904
3,058 8.50%, 6/15/05-9/15/24.................................... 3,268
942 8.75%, 8/15/08-6/15/17.................................... 1,017
7,170 9.00%, 11/15/04-9/20/22................................... 7,673
2,186 9.25%, 5/15/16-5/15/21.................................... 2,377
20,532 9.50%, 6/15/09-11/15/21................................... 22,201
269 10.00%, 9/20/00-10/20/04.................................. 291
691 10.50%, 6/15/98-12/20/04.................................. 733
849 11.00%, 9/15/98-3/20/01................................... 903
1,089 11.50%, 1/15/99-12/15/15.................................. 1,224
117 11.75%, 9/15/98-15/15/99.................................. 127
4,142 12.00%, 9/15/98-5/15/18................................... 4,744
6,084 12.50%, 4/15/10-1/20/16................................... 7,079
283 12.75%, 9/20/13-7/20/15................................... 328
Government National Mortgage Association, continued:
$ 3,029 13.00%, 11/15/10-6/20/15.................................. $ 3,542
2,991 13.50%, 5/15/10-6/20/15................................... 3,559
2,601 14.00%, 5/15/11-2/15/15................................... 3,142
104 14.50%, 9/15/12-8/15/14................................... 127
6,152 15.00%, 6/15/11-4/15/13................................... 7,613
118 16.00%, 10/15/11-4/15/12.................................. 141
118 17.00%, 11/15/11.......................................... 141
--------
78,288
--------
U.S. Treasury Notes (18.7%):
13,000 5.88%, 11/15/05(b)........................................ 13,183
4,500 6.50%, 8/15/05(b)......................................... 4,729
4,500 6.50%, 10/15/06(b)........................................ 4,746
15,400 7.00%, 7/15/06(b)......................................... 16,727
5,000 7.50%, 2/15/05(b)......................................... 5,519
--------
44,904
--------
U.S. Treasury Strips (2.5%):
10,400 0.00%, 5/15/08............................................ 5,914
--------
Total Government Obligations 164,394
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (28.5%):
395 CityFed Mortgage Trust, Series 1, Class D, 10.00%,
1/1/18................................................... 419
2,106 Drexel Burnham Lambert, Series H, Class 4, 8.50%, 4/1/17.. 2,213
3,000 Federal Home Loan Mortgage Corp., Series 1265, Class J,
7.00%, 6/15/21........................................... 3,045
1,566 Federal Home Loan Mortgage Corp., Series 1273, Class Z,
7.50%, 5/15/22 1,608
3,000 Federal Home Loan Mortgage Corp., Series 1252, Class J,
8.00%, 5/15/22........................................... 3,202
6,003 Federal Home Loan Mortgage Corp., Series 1311, Class J,
7.50%, 9/15/21........................................... 6,180
7,000 Federal Home Loan Mortgage Corp., Series 1343, Class K,
7.50%, 4/15/21........................................... 7,237
3,100 Federal National Mortgage Assoc., Series 1992-214 Pl,
7.50%, 5/25/21........................................... 3,239
5,360 Federal National Mortgage Assoc., Series 1992-117l,
8.00%, 9/25/21........................................... 5,569
2,027 Federal National Mortgage Assoc., Series 1992-158z,
7.75%, 3/25/21........................................... 2,117
3,560 Federal National Mortgage Assoc., Series 1992-171 Class
ZD, 8.00%, 6/25/21....................................... 3,880
8,388 Federal National Mortgage Assoc., Series 1992-171z,
7.50%, 3/25/21........................................... 8,664
1,635 Federal National Mortgage Assoc., Series 1992-29z, 8.00%,
2/25/22.................................................. 1,753
5,000 Federal National Mortgage Assoc., Series 1993, Class 2,
7.35%, 3/25/21........................................... 5,115
</TABLE>
81
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
U.S. Government Income Fund
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
COLLATERALIZED MORTGAGE OBLIGATIONS, CONTINUED:
$ 3,000 Federal National Mortgage Assoc., Series 1994-93ph,
7.50%, 8/25/22.......................................... $ 3,149
4,940 Federal National Mortgage Assoc., Series Global, 7.88%,
2/24/05................................................. 5,495
943 MDC Asset Investors Trust, Series 6, Class 8, 7.00%,
2/20/19................................................. 946
771 Prudential Bache, Series 12, Class F, 8.49%, 10/20/20.... 847
3,000 Security Mortgage Acceptance Corp., Series II, 9.00%,
12/1/16................................................. 3,234
570 Structured Mortgage Residential Trust, 8.25%, 6/25/19.... 618
--------
Total Collateralized Mortgage Obligations 68,530
--------
REPURCHASE AGREEMENTS (1.9%):
4,622 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$4,577, FNMA ARM, 7.95%, 10/1/24, market value--$4,737). 4,622
--------
Total Repurchase Agreements 4,622
--------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (12.9%):
Commercial Paper (4.2%):
$10,000 Centerior Fuel Corp., 5.70%, 6/1/98..................... $ 9,995
--------
Repurchase Agreements (8.7%):
20,909 Paine Webber, 5.68%, 6/1/98, (See Significant Accounting
Policies, Lending Portfolio Securities in the Notes to
Financial Statements for collateral)................... 20,909
--------
Total Short Term Securities Purchased with Collateral 30,904
--------
Total Investments (Cost $265,883)(a)--111.7% 268,450
Liabilities in excess of other assets (11.7)% (28,071)
--------
Total Net Assets--100.0% $240,379
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $48. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $2,956
Unrealized depreciation....................................... (437)
------
Net unrealized appreciation................................... $2,519
======
</TABLE>
(b)All or part of this security has been loaned at May 31, 1998.
82
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Bond Fund
(Amounts in Thousands)
Continued
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
MORTGAGE BACKED SECURITIES (2.0%):
$10,100 First Union Lehman 98-C1 A2, 6.56%, 11/18/35.............. $ 10,316
---------
Total Mortgage Backed Securities 10,316
---------
U.S. TREASURY BONDS (10.9%):
1,975 6.38%, 8/15/27(c)......................................... 2,122
50,850 6.13%, 11/15/27(c)........................................ 53,168
---------
Total U.S. Treasury Bonds 55,290
---------
U.S. TREASURY NOTES (17.9%):
14,800 6.00%, 8/15/00(c)......................................... 14,938
11,500 5.38%, 2/15/01(c)......................................... 11,449
4,900 5.88%, 11/30/01(c)........................................ 4,944
5,000 6.13%, 12/31/01(c)........................................ 5,084
700 5.88%, 9/30/02............................................ 707
13,000 5.50%, 1/31/03(c)......................................... 12,958
2,300 5.50%, 2/28/03(c)......................................... 2,292
4,350 5.50%, 3/31/03(c)......................................... 4,337
5,000 7.88%, 11/15/04(c)........................................ 5,603
6,950 6.13%, 8/15/07(c)......................................... 7,179
21,300 5.50%, 2/15/08(c)......................................... 21,170
---------
Total U.S. Treasury Notes 90,661
---------
U.S. TREASURY STRIPS (0.8%):
6,400 0.00%, 5/15/07............................................ 3,865
---------
Total U.S. Treasury Strips 3,865
---------
GOVERNMENT OBLIGATIONS (18.6%):
Mortgage Pass Thru's (18.6%):
Federal Home Loan Mortgage Corp. (0.8%):
1,144 9.00%, 5/15/20............................................ 1,215
2,831 9.50%, 10/1/20............................................ 3,046
---------
4,261
---------
Federal National Mortgage Assoc. (10.7%):
5,073 9.00%, 8/1/09-11/1/24..................................... 5,355
3,278 8.25%, 7/1/17............................................. 3,404
3,327 8.50%, 7/1/25............................................. 3,471
8,736 6.50%, 8/1/27-12/1/27..................................... 8,685
32,800 7.00%, 7/15/28(b)......................................... 33,210
---------
54,125
---------
Government National Mortgage Assoc. (7.1%):
31,634 7.50%, 4/15/23-8/15/25.................................... 32,715
3,071 6.50%, 9/15/23............................................ 3,079
---------
35,794
---------
Total Government Obligations 94,180
---------
CORPORATE BONDS (28.0%):
Euro Dollar (3.3%):
10,000 National Bank of Canada, 4.56%*, 8/29/87.................. 8,451
3,000 Skandia Capital Corp., 6.00%, 11/2/98..................... 2,996
5,000 Sweden Kingdom, 6.75, 5/27/04............................. 5,186
---------
16,633
---------
Financial (11.9%):
$ 7,000 AT&T Capital Corp., 6.41%, 8/13/99....................... $ 7,001
10,000 Beneficial Corp., 6.03%, 1/14/03......................... 9,900
5,000 Chrysler Financial Corp., 6.08%, 4/6/01.................. 4,994
10,400 Continental Bank, N.A., 11.25%, 7/1/01................... 10,438
5,000 Jackson National Life Insurance Co., 8.15%, 3/15/27...... 5,594
6,000 Lumbermen's Tiers Trust, 8.45%, 12/1/17.................. 6,778
10,000 Morgan Guaranty Trust, 6.75%, 5/28/02.................... 10,263
5,000 Sears Roebuck Acceptance Corp., 6.63%, 2/25/02........... 5,063
---------
60,031
---------
Industrials (8.5%):
5,000 Chrysler Corp., 7.40%, 8/1/2097, Callable on 8/1/2087
@100.................................................... 5,419
8,050 ERAC USA Finance Co., 6.35%, 1/15/01..................... 8,090
5,700 Ingersoll-Rand, 6.39%, 11/15/27.......................... 5,807
5,000 Johnson & Johnson, 8.25%, 11/9/04........................ 5,563
6,700 News America Holdings, 7.75%, 12/1/45.................... 7,102
9,300 Time Warner Entertainment, 8.38%, 3/15/23................ 10,834
---------
42,815
---------
Private Placement (1.1%):
5,000 Cargill, Inc., 7.41%, 6/18/27............................ 5,544
---------
Telecommunications (2.1%):
10,000 WorldCom, Inc., 9.38%, 11/15/04.......................... 10,650
---------
Transportation (1.1%):
5,000 Federal Express, 7.60%, 7/1/46........................... 5,419
---------
Total Corporate Bonds 141,092
---------
ASSET BACKED SECURITIES (12.6%):
4,699 EQCC Home Equity Loan Trust, 5.73%, 12/15/08............. 4,634
10,850 First Plus Home Loan Trust, Series A3, 6.27%, 5/10/13.... 10,865
10,000 First USA Credit Card Master Trust, 5.87%*, 10/17/06..... 9,984
5,000 First USA Credit Card Master Trust, 6.19%*, 2/17/10...... 5,000
2,685 General Motors Acceptance Corp., 6.50%, 4/15/02.......... 2,703
11,000 Green Tree Financial Corp., 7.20%, 4/15/19............... 11,319
2,336 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09... 2,378
2,930 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08........... 2,944
5,000 MBNA Master Credit Card Trust, 5.78%*, 2/15/07........... 4,994
</TABLE>
83
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Bond Fund
(Amounts in Thousands)
See notes to financial statements.
<TABLE>
<CAPTION>
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- -------------------------------------------------------- ---------
<C> <S> <C>
ASSET BACKED SECURITIES, CONTINUED:
$ 1,702 Structured Asset Securities Co., 7.50%, 8/25/26......... $ 1,730
7,234 The Money Store, 6.00%*, 10/15/27....................... 7,238
---------
Total Asset Backed Securities 63,789
---------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.4%):
Federal National Mortgage Assoc. (4.4%):
15,000 5.75%, 4/15/03.......................................... 14,987
3,928 9.00%, 7/25/20, Series 90-84............................ 4,175
3,215 8.00%, 2/25/21, Series G92-35........................... 3,321
---------
Total Collateralized Mortgage Obligations 22,483
---------
REPURCHASE AGREEMENTS (10.1%):
50,997 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$51,762, FNMA ARM's, 6.22%-7.42%, 8/1/25-7/1/34, market
value--$52,337)........................................ 50,997
---------
Total Repurchase Agreements 50,997
---------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (25.8%)
Commercial Paper (21.9%):
10,973 Bridgestone/Firestone, 5.80%, 6/1/98.................... 10,968
20,000 Engelhard Corp., 5.77%, 6/1/98.......................... 19,990
Commercial Paper, continued:
$15,871 Glencore Asset Funding, 5.63%, 6/3/98.................. $ 15,799
10,035 KZH Holding Corp., 5.63%, 6/18/98...................... 10,001
25,000 McKesson Corporation, 5.70%, 6/1/98.................... 24,988
9,000 Mitsubishi Motors Credit, 5.69%, 6/15/98............... 8,953
20,000 PHH Corp., 5.66%, 6/10/98.............................. 19,956
---------
110,655
---------
Floating Rate Note (2.0%):
10,000 Bankers Trust, 5.64%, 9/11/98.......................... 9,996
---------
Repurchase Agreements (1.9%):
9,621 Paine Webber, 5.68%, 6/1/98, (See Significant
Accounting Policies, Lending Portfolio Securities in
the Notes to Financial Statements for collateral)..... 9,621
---------
Total Short Term Securities Purchased with Collateral 130,272
---------
Total Investments (Cost $657,809)(a)--131.1% 662,945
Liabilities in excess of other assets (31.1)% (157,260)
---------
Total Net Assets--100.0% $ 505,685
=========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1998.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $93. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $ 6,549
Unrealized depreciation...................................... (1,506)
-------
Net unrealized appreciation.................................. $ 5,043
=======
</TABLE>
(b) On May 31, 1998, the total cost of investments purchased on a when-issued
basis was $32,636.
(c) All or a portion of this security has been loaned at May 31, 1998.
84
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (98.3%):
Arizona (3.8%):
$ 2,825 Phoenix, 5.00%, 7/1/08................................... $ 2,949
2,000 Tempe, 5.00%, 7/1/04..................................... 2,085
--------
5,034
--------
Colorado (1.6%):
1,000 Arapahoe County School District, # 005, Cherry Creek,
5.50%, 12/15/01......................................... 1,049
1,000 Jefferson County School District, 5.25%, 12/15/05........ 1,059
--------
2,108
--------
Connecticut (6.8%):
1,770 Clean Water Fund, 6.38%, 6/1/05.......................... 2,005
1,000 Stamfort, 5.00%, 7/15/08................................. 1,053
1,880 State, 5.00%, 3/15/07.................................... 1,962
2,000 State Special Tax Obligation, 5.38%, 9/1/08.............. 2,148
1,825 State, PCR, 5.50%, 3/1/06................................ 1,971
--------
9,139
--------
Delaware (3.4%):
1,250 Delaware Transportation Authority, 6.00%, 7/1/06......... 1,383
2,000 State, 5.00%, 5/1/04..................................... 2,080
1,000 Transportation Authority, 7.80%, 7/1/04.................. 1,135
--------
4,598
--------
Florida (8.8%):
135 Board of Education Capital Outlay, 9.13%, 6/1/14......... 191
2,000 Board of Education, Series G, 6.90%, 5/1/03, ETM......... 2,241
1,000 Dade County, 6.00%, 7/15/04.............................. 1,095
1,630 Dade County School District, 6.50%, 2/15/06.............. 1,856
1,000 Gulf Breeze, Revenue, 4.80%, 12/1/17..................... 980
2,000 Jacksonville, 6.00%, 10/1/05............................. 2,203
1,000 Jacksonville Electric & Water Authority Revenue, 5.00%,
10/1/03................................................. 1,040
1,000 State Department of Transportation Right-of-Way, 6.00%,
7/1/07.................................................. 1,121
1,000 Tampa Sports Authority Revenue, 6.00%, 1/1/06............ 1,105
--------
11,832
--------
Georgia (2.7%):
1,200 Fayette County School District, G.O., 6.25%, 3/1/04...... 1,334
2,000 State, 6.60%, 4/1/05..................................... 2,270
--------
3,604
--------
Guam (1.2%):
$ 1,505 Government Highway Revenue, Series A, 5.90%, 5/1/02...... $ 1,605
--------
Idaho (1.4%):
1,560 Canyon County School District, G.O., MBIA, 8.13%,
7/30/03................................................. 1,847
--------
Kansas (0.9%):
1,000 Department of Transportation & Highway, 7.25%, 3/1/04.... 1,159
--------
Kentucky (3.3%):
3,000 Turnpike Authority, 6.50%, 7/1/07........................ 3,457
1,000 Turnpike Authority, Economic Development, Refunding
Bonds, 5.00%, 7/1/02.................................... 1,034
--------
4,491
--------
Maryland (5.6%):
1,150 Howard County, Series A, 5.00%, 2/15/08.................. 1,205
4,000 Montgomery County, 5.00%, 5/1/03......................... 4,159
1,000 Montgomery County, 5.70%, 7/1/05......................... 1,088
1,000 Montgomery County, Series A, 5.38%, 5/1/06............... 1,071
--------
7,523
--------
Massachusetts (0.8%):
1,000 State, 5.75%, 8/1/08..................................... 1,105
--------
Minnesota (7.2%):
1,000 Minneapolis, 6.05%, 4/1/03............................... 1,085
1,000 North Saint Paul Maplewood, 6.88%, 2/1/15, Prerefunded
2/1/05 @100............................................. 1,158
3,000 Northern Municipal Power Agency, 7.25%, 1/1/16........... 3,116
1,000 Public Facilities Water & Pollution, 6.50%, 3/1/03....... 1,104
2,000 Public Facilities Water & Pollution, 5.00%, 3/1/06....... 2,098
1,000 State, 6.00%, 5/1/06..................................... 1,114
--------
9,675
--------
Missouri (3.7%):
1,535 Kansas City, G.O., 6.00%, 2/1/04......................... 1,673
495 State Environmental Energy, Water Pollution Control,
7.00%, 10/1/10.......................................... 538
1,545 State Environmental Improvements, 6.00%, 1/1/07.......... 1,746
1,000 State G.O., Series A, 6.00%, 4/1/02...................... 1,070
--------
5,027
--------
</TABLE>
85
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- --------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
New Mexico (2.6%):
$1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05................. $ 1,101
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07................. 1,116
1,200 Albuquerque, G.O., Series A, 5.00%, 7/1/04............... 1,253
--------
3,470
--------
New York (3.7%):
1,000 Municipal Assistance Corp., 6.00%, 7/1/04................ 1,094
2,000 New York City, G.O., 8.00%, 4/1/03, AMBAC................ 2,325
1,365 New York City, Transitional Financial Authority Revenue,
5.50%, 8/15/07.......................................... 1,476
--------
4,895
--------
North Carolina (3.1%):
3,000 Mecklenburg County, G.O., 5.10%, 3/1/05.................. 3,143
1,000 State School Improvements, 5.10%, 3/1/05................. 1,050
--------
4,193
--------
Ohio (6.3%):
1,000 Cleveland, 5.50%, 8/1/06................................. 1,074
1,020 Cleveland School District, 8.00%, 12/1/01, Callable
12/1/97 @100............................................ 1,151
1,000 Columbus Refund Bond, Series B, 5.25%, 5/15/08........... 1,068
1,000 State Highway Improvements, 5.00%, 5/1/06................ 1,044
1,000 State Refund Infrastructure Improvements, Series R,
5.45%, 9/1/03........................................... 1,064
1,715 State Water Revenue Bonds, 6.00%, 6/1/07................. 1,910
1,110 University of Cincinnati, General Receipts, Series T,
5.50%, 6/1/11........................................... 1,196
--------
8,507
--------
Oklahoma (2.3%):
2,865 State Turnpike Authority, Series A, 5.90%, 1/1/03,
Callable 7/1/02 @ 102................................... 3,062
--------
Oregon (5.9%):
1,000 Deschutes & Jefferson School District, G.O., 6.00%,
6/1/03.................................................. 1,091
1,435 Lane County School District, G.O., 6.00%, 1/1/04......... 1,562
1,500 Portland, 5.00%, 6/1/04.................................. 1,564
1,220 Washington County School District, 7.80%, 6/1/04......... 1,447
2,000 Washington County, Refunding Bonds, 5.75%, 10/1/08....... 2,216
--------
7,880
--------
Puerto Rico (6.0%):
$1,000 6.50%, 7/1/04, MBIA....................................... $ 1,124
5,000 Electric Power Authority, 6.50%, 7/1/06................... 5,749
1,000 University of Puerto Rico, 6.25%, 6/1/07.................. 1,141
--------
8,014
--------
Rhode Island (0.9%):
1,130 State, 5.00%, 8/1/06...................................... 1,179
--------
South Carolina (1.7%):
2,095 Cherokee County, 5.50%, 3/1/05............................ 2,242
--------
Tennessee (5.4%):
1,290 Memphis, G.O., 6.00%, 11/1/03............................. 1,404
1,435 Metro Government Nashville County, 5.25%, 5/15/07......... 1,518
2,000 Shelby, G.O., 5.00%, 8/1/06............................... 2,088
2,000 State, G.O., 6.00%, 5/1/05................................ 2,210
--------
7,220
--------
Texas (1.6%):
1,000 Dallas County, 5.00%, 8/15/04............................. 1,046
1,000 Dallas, G.O., 6.13%, 2/15/07, Prerefunded 2/15/03 @ 100... 1,082
--------
2,128
--------
Utah (1.6%):
2,000 State Highway Improvements, 5.50%, 7/1/04................. 2,143
--------
Vermont (1.1%):
1,355 Burlington Electric Revenue Bond, 6.00%, 7/1/07........... 1,506
--------
Virginia (0.8%):
1,000 Newport News, 5.00%, 3/1/05............................... 1,044
--------
Washington (1.5%):
1,000 King County, 6.10%, 12/1/01............................... 1,002
1,000 Seattle, 5.00%, 12/1/03................................... 1,042
--------
2,044
--------
Wisconsin (2.6%):
2,000 Milwaukee, 6.00%, 2/1/07.................................. 2,233
1,170 State Public Improvements, 5.25%, 5/1/07.................. 1,237
--------
3,470
--------
Total Municipal Bonds 131,744
--------
</TABLE>
86
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
INVESTMENT COMPANIES (0.3%):
437,589 Provident Institutional Muni Cash Fund.................... $ 438
--------
Total Investment Companies 438
--------
Total Investments (Cost $129,304)(a)--98.6% 132,182
Other assets in excess of liabilities 1.4% 1,882
--------
Total Net Assets--100.0% $134,064
========
</TABLE>
- -------
(a) Represents cost for federal income tax purposes and differs from value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $3,014
Unrealized depreciation....................................... (136)
------
Net unrealized appreciation................................... $2,878
======
</TABLE>
AMBAC--American Municipal Bond Assurance Corp.
ETM--Escrowed to Maturity
G.O.--General Obligation
MBIA--Municipal Bond Insurance Association
PCR--Pollution Control Revenue
87
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS (99.0%):
Michigan (91.7%):
$1,850 Avondale School District, 5.80%, 5/1/07, Callable 5/1/02 @
102...................................................... $ 1,977
1,000 Birmingham School District, 5.5%, 11/1/04................. 1,070
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/08, MBIA.... 1,785
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/09, MBIA.... 1,823
1,285 Chippewa Valley School District, Refunding Bonds, 6.00%,
5/1/08................................................... 1,439
1,000 Chippewa Valley School District, 7.00%, 5/1/11,
Prerefunded 5/1/01 @ 102................................. 1,098
2,375 Chippewa Valley School District, G.O., 7.80%, 5/1/01...... 2,621
1,000 Clarkston Commerce Schools, 6.25%, 5/1/05................. 1,114
1,155 Clarkston Community Schools, Refunding Bonds, 5.00%,
5/1/08................................................... 1,203
1,150 Clarkston County Schools, G.O., 6.00%, 5/1/04............. 1,255
1,600 Comprehensive Transportation, Series B, 5.40%, 5/15/01.... 1,660
1,100 Dearborn School District, 8.38%, 5/1/01, Prerefunded
5/1/00 @ 102............................................. 1,209
1,065 Detroit, 5.50%, 5/1/03.................................... 1,122
1,415 Detroit, Refunding Bonds, 5.50%, 4/1/07................... 1,519
1,000 Detroit, 5.50%, 4/1/08.................................... 1,076
1,600 Detroit, 6.25%, 7/15/11................................... 1,840
2,000 Detroit Revenue Bonds, G.O., 5.25%, 5/1/08, AMBAC......... 2,115
1,275 Detroit Sewage Disposal, 6.20%, 7/1/02, Prerefunded
7/1/01@ 102.............................................. 1,380
2,500 Detroit Sewage Disposal, 6.00%, 7/1/07.................... 2,775
1,000 Detroit Sewage Disposal Revenue, 6.00%, 7/1/10............ 1,128
1,000 Detroit Sewage Disposal Revenue, Series B, 6.00%, 7/1/09.. 1,124
1,000 Detroit Water, 6.50%, 7/1/15, FGIC........................ 1,188
2,000 Detroit Water Supply System, 5.40%, 7/1/10................ 2,145
2,250 Detroit Water Supply Systems, Series B, 5.55%, 7/1/12,
MBIA..................................................... 2,422
1,375 East Lansing Building Authority, 6.90%, 10/1/11........... 1,452
1,350 Ecorse Public School, 6.50%, 5/1/07....................... 1,554
2,250 Farmington, 5.00%, 5/1/03................................. 2,329
1,000 Farmington, 5.00%, 5/1/06................................. 1,040
1,110 Flint, 6.00%, 11/1/04..................................... 1,220
1,125 Goodrich Area School District, G.O., 7.65%, 5/1/11,
Callable 5/1/05 @ 102, MBIA.............................. 1,368
1,000 Grand Haven Electric, 5.20%, 7/1/06, MBIA................. 1,054
1,235 Grand Haven Public Schools, G.O., 7.00%, 5/1/07, Callable
5/1/03 @ 102............................................. 1,462
$2,655 Grand Ledge Public School District, 5.25%, 5/1/09......... $ 2,828
1,250 Grand Ledge Public School District, G.O., 5.45%, 5/1/11,
MBIA..................................................... 1,336
2,400 Grand Rapids Public Schools, 8.00%, 5/1/99................ 2,491
1,925 Grand Rapids School District, G.O., 5.00%, 5/1/06,
Callable 5/1/01 @ 102.................................... 1,990
1,200 Grand Rapids, G.O., 6.50%, 5/1/00......................... 1,256
1,000 Grand Valley, Michigan State, 7.88%, 10/1/08.............. 1,033
1,500 Greater Detroit Resources Recovery, 6.25%, 12/13/08....... 1,703
1,000 Hartland School District, G.O., 5.35%, 5/1/03............. 1,051
1,570 Holland Electric, 6.25%, 7/1/01........................... 1,670
600 Holt School District, G.O., 8.75%, 5/1/00................. 652
600 Holt School District, G.O., 8.75%, 5/1/01................. 674
1,525 Housing Development Authority, AMT, 5.75%, 10/1/04........ 1,637
1,000 Housing Development Authority, Series A, 6.45%, 6/1/04,
Callable 6/1/02 @ 102.................................... 1,075
1,000 Huron Valley School District, 5.75%, 5/1/06............... 1,091
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable
7/1/99 @ 100............................................. 2,048
1,015 Kalamazoo Hospital Authority, Bronson Hospital, 5.63%,
5/15/01.................................................. 1,057
1,000 Kalamazoo Hospital Finance Authority, 5.63%, 7/1/00....... 1,033
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, 6.13%, 7/1/07, FGIC.............................. 2,155
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, Series A, 6.00%, 6/1/03.......................... 2,155
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital,
5.88%, 5/15/03........................................... 1,539
1,000 Kalamazoo Public Library, 5.20%, 5/1/11................... 1,053
1,650 Kalamazoo, G.O., 6.20%, 10/1/06, Callable 10/1/02 @ 101.5. 1,786
1,300 Kenowa Hills, G.O., 5.50%, 5/1/04......................... 1,385
1,120 Kent County, 8.00%, 12/1/98............................... 1,145
1,250 Kent County Building Authority, 6.00%, 12/1/09............ 1,289
5,000 Kent County Hospital Authority, Butterworth Hospital,
Series A, 7.25%, 1/15/13................................. 6,250
3,000 Kent County, G.O., 5.00%, 11/1/06......................... 3,124
1,000 Kent Hospital Finance Authority, Revenue Bonds, 5.10%,
1/15/07.................................................. 1,038
500 Kentwood School District, 5.90%, 5/1/04, Prerefunded
5/1/02 @ 102............................................. 540
</TABLE>
88
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
Continued
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$ 500 Kentwood School District, 5.90%, 5/1/04................... $ 538
2,000 Lake Orion County School District, G.O., 7.00%, 5/1/20,
Prerefunded 5/1/05 @101.................................. 2,348
1,000 Lansing Building Authority, 6.00%, 6/1/04................. 1,056
1,000 Lansing Michigan Light, G.O., 6.00%, 10/1/02.............. 1,073
2,000 Lansing School District, G.O., 6.88%, 5/1/09, Callable
5/1/05 @100.............................................. 2,305
1,335 Lansing, G.O., 6.00%, 1/1/07.............................. 1,477
1,000 Livonia School District, G.O., 6.35%, 5/1/04, Callable
5/01/02 @102............................................. 1,094
1,000 Local Government Loan Program, 6.20%, 5/1/04.............. 1,100
1,000 Michigan State University, Series A, 5.70%, 8/15/03,
Callable 8/15/02 @101.................................... 1,070
2,075 Mona Shores School District, G.O., 6.75%, 5/1/09.......... 2,477
2,515 Mount Pleasant School District, 5.75%, 5/1/05............. 2,726
2,000 Municipal Bond Authority, 6.25%, 5/15/00.................. 2,090
1,000 Municipal Bond Authority, Detroit Schools State Aid,
6.70%, 11/1/99........................................... 1,028
1,000 Municipal Bond Authority, Local Government Program, 6.90%,
5/1/99................................................... 1,040
1,000 Oakland County Community College, 6.65%, 5/1/11........... 1,106
1,000 Oakland, University of Michigan, 5.00%, 5/15/05........... 1,038
1,000 Paw Paw Public School District, G.O., 6.50%, 5/1/09, FGIC. 1,171
1,000 Plymouth School District, 6.50%, 5/1/05, Callable 5/1/01 @
101...................................................... 1,071
1,000 Rochester, 5.75%, 5/1/08.................................. 1,101
1,000 Rochester Community School District, 5.25%, 5/1/04........ 1,053
2,000 Rochester School District, 6.30%, 5/1/04, Prerefunded
5/1/02 @100.............................................. 2,153
2,000 Rochester School District, 5.70%, 5/1/07.................. 2,185
1,000 Rochester School District, 6.50%, 5/1/07, Prerefunded
5/1/02 @100.............................................. 1,084
1,000 Rochester School District, 6.50%, 5/1/08, Prerefunded
5/1/02 @100.............................................. 1,084
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02
@102..................................................... 1,210
400 Rockford School District, Refunding Bonds, 6.00%, 5/1/07.. 446
2,260 Romeo Community School District, 5.25%, 5/1/06............ 2,390
$2,120 Royal Oak Hospital Financial Authority, William Beaumont
Hospital, Series G, 6.00%, 11/15/02...................... $ 2,266
1,130 South Lyon Community Schools, 5.375%, 5/1/07.............. 1,208
955 St. Johns Public Schools, 5.00%, 5/1/21, FGIC............. 942
1,000 State Building Authority, 6.25%, 10/1/00.................. 1,051
3,475 State Building Authority, 6.25%, 10/1/03.................. 3,818
1,000 State Building Authority, 7.25%, 10/1/08, Prerefunded
10/1/99 @100............................................. 1,044
2,000 State Building Authority Revenue, 5.50%, 10/15/05......... 2,145
1,020 State Building Authority, Michigan University Adult
General Hospital, 7.00%, 12/1/08, Prerefunded 12/1/02 @
100...................................................... 1,140
1,000 State Building Authority, Series II, 6.40%, 10/1/04,
Callable 10/1/01 @102.................................... 1,088
3,000 State Environmental Protection Program, G.O., 5.50%,
11/1/05.................................................. 3,229
2,825 State Environmental Protection Program, G.O., 6.25%,
11/1/07, Prerefunded 11/1/02 @ 102....................... 3,108
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....... 562
2,000 State Hospital Authority, Henry Ford, 6.00%, 9/1/12,
AMBAC.................................................... 2,233
1,135 State Hospital Finance Authority, Harper Grace Hospital,
7.12%, 5/1/09, ETM....................................... 1,304
1,200 State Hospital Finance Authority, Oakwood Hospital, Series
A, 5.00%, 11/1/03........................................ 1,242
5,000 State Hospital Finance Authority, Sisters of Mercy, 5.38%,
8/15/14, MBIA............................................ 5,231
1,000 State Hospital Revenue Bonds, 6.00%, 8/15/02.............. 1,065
1,000 State Housing Development, 6.63%, 10/15/06, Callable
10/15/02 @103............................................ 1,094
1,055 State Power Agency, 5.70%, 11/1/04........................ 1,139
2,000 State Recreation Program, G.O., 5.75%, 11/1/01............ 2,113
2,000 State South Central Power Agency, 5.80%, 11/1/05.......... 2,180
500 State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @
102...................................................... 527
1,005 State Trunk Line, 6.25%, 11/1/03.......................... 1,106
1,000 State Underground Storage, 6.00%, 5/1/05.................. 1,098
2,000 State Underground Tank Financial Assurance Authority,
6.00%, 5/1/04............................................ 2,180
</TABLE>
89
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
See notes to financial statements.
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
MUNICIPAL BONDS, CONTINUED:
Michigan, continued:
$2,165 State, G.O., 5.00%, 12/1/03............................... $ 2,257
3,000 Strategic Fund (Detroit Edison), 7.00%, 7/15/08........... 3,596
2,000 Strategic Fund (Detroit Edison), 6.95%, 5/1/11............ 2,435
5,950 Strategic Fund (Ford), 7.10%, 2/1/06...................... 6,980
1,000 Traverse City Public Schools, 7.00%, 5/1/05, Prerefunded
5/1/01 @101.5............................................ 1,094
400 Traverse City School District, G.O., 9.00%, 5/1/99........ 419
1,325 Tri County School District, G.O., 6.88%, 5/1/16,
Prerefunded 5/1/01 @101.50............................... 1,446
1,000 Troy School District, 7.75%, 5/1/01, Prerefunded 5/1/00 @
102...................................................... 1,089
500 University of Michigan, 6.00%, 4/1/05..................... 548
2,000 University of Michigan Hospital Revenue Bonds, 7.00%,
12/1/21, Prerefunded 12/1/00 @ 102....................... 2,178
1,000 University of Michigan, Student Fees, 5.00%, 4/1/02....... 1,031
1,315 University of Michigan, Student Fees, Series A, 6.00%,
4/1/06................................................... 1,453
2,000 University of Michigan, Student Fees, Series B, 5.60%,
4/1/08, Callable 4/1/03 @102............................. 2,140
1,975 Utica School District, 5.60%, 5/1/05...................... 2,116
285 Wayne County Airport Revenue, AMT, 7.25%, 12/1/10......... 310
2,000 Wayne County Building Authority, 6.00%, 6/1/07, Callable
6/1/06 @102.............................................. 2,230
1,985 West Ottawa, 6.00%, 5/1/06................................ 2,198
1,680 Western Michigan School District, 5.90%, 5/1/10, MBIA..... 1,884
400 Western Michigan University, 5.00%, 11/15/07.............. 417
1,500 Western Michigan University, Series A, 5.40%, 7/15/08,
Callable 7/15/03 @105.................................... 1,581
$ 1,000 Western Township Utilities Authority, 6.00%, 1/1/00...... $ 1,033
1,000 Western Township Utilities Authority, 6.10%, 1/1/01...... 1,051
1,000 Wyandotte City School District, G.O., 6.90%, 5/1/16,
Prerefunded 5/1/01 @102................................. 1,095
3,000 Wyandotte Electric Revenue, 6.25%, 10/1/08, MBIA......... 3,428
--------
228,065
--------
Puerto Rico (6.7%):
1,000 Commonwealth, Aqueduct & Sewer Authority, 6.00%, 7/1/07,
MBIA.................................................... 1,124
4,000 Commonwealth, G.O., 6.25%, 7/1/09........................ 4,630
2,000 Commonwealth, G.O., 6.25%, 7/1/10........................ 2,330
500 Commonwealth, G.O., 6.25%, 7/1/12........................ 581
1,250 Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA.. 1,422
1,000 Electric Power Authority, Series Y, 6.50%, 7/1/06, MBIA.. 1,150
4,000 Public Buildings Authority, 5.50%, 7/1/07, FSA........... 4,345
1,000 University of Puerto Rico, 6.25%, 6/1/07................. 1,141
--------
16,723
--------
Virgin Islands (0.6%):
1,340 Public Finance Authority, 7.00%, 10/1/04................. 1,492
--------
Total Municipal Bonds 246,280
--------
INVESTMENT COMPANIES (0.4%):
961,195 Federated Michigan Tax Free Money Market................. 961
--------
Total Investment Companies 961
--------
Total Investments (Cost $234,467)(a)--99.4% 247,241
Other assets in excess of liabilities 0.6% 1,524
--------
Total Net Assets--100.0% $248,765
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $19. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $12,821
Unrealized depreciation...................................... (66)
-------
Net unrealized appreciation.................................. $12,755
=======
</TABLE>
AMBAC--American Municipal Bond Assurance Corp.
AMT--Alternative Minimum Tax
ETM--Escrowed to Maturity
FGIC--Federal Guarantee Insurance Corp.
FSA--Financial Securities Assurance, Inc.
G.O.--General Obligation
MBIA--Municipal Bond Insurance Association
90
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS (28.1%):
Apparel/Shoes (0.1%):
400 Brylane, Inc.(b)........................................... $ 19
-------
Banking (0.2%):
600 State Street Corp.(c)...................................... 41
-------
Broadcasting & Publishing (0.7%):
1,700 CanWest Global Communications Corp......................... 30
1,200 Chancellor Media Corp.(b)(c)............................... 50
400 Clear Channel Communications, Inc.(b)...................... 38
-------
118
-------
Building Products (0.1%):
800 Royal Group Technologies Ltd.(b)........................... 22
-------
Business Services (1.1%):
800 Analog Devices, Inc.(b)(c)................................. 20
500 Automatic Data Processing, Inc............................. 32
800 BA Merchant Services, Inc.(b).............................. 14
700 Cintas Corp................................................ 32
1,500 Paychex, Inc............................................... 54
1,200 SunGard Data Systems, Inc.(b).............................. 41
-------
193
-------
Chemicals (0.3%):
900 Monsanto Co................................................ 50
-------
Commercial Services (0.1%):
400 Central Parking Corp.(c)................................... 18
-------
Computer Hardware (0.2%):
700 Sun Microsystems, Inc.(b)(c)............................... 28
-------
Computer Software & Peripherals (3.0%):
1,800 BMC Software, Inc.(b)...................................... 83
1,100 Cadence Design Systems, Inc.(b)(c)......................... 39
800 Cambridge Technology Partners, Inc.(b)..................... 40
600 CBT Group PLC(b)(c)........................................ 30
900 Cisco Systems, Inc.(b)..................................... 68
250 HBO & Company.............................................. 14
1,000 Microsoft, Inc.(b)......................................... 86
1,600 Parametric Technology Corp.(b)............................. 49
1,400 PeopleSoft, Inc.(b)(c)..................................... 61
450 VERITAS Software Corp.(b).................................. 18
-------
488
-------
Consumer Goods & Services (0.8%):
450 Apollo Group, Inc.(b)(c)................................... 14
500 Clorox Co.................................................. 42
900 Procter & Gamble Co.(c).................................... 76
-------
132
-------
Correctional Facilities (0.1%):
400 Corrections Corp. of America(b)............................ 9
-------
Cosmetics/Personal Care (0.1%):
200 Gillette Co................................................ 23
-------
Data Processing & Reproduction (0.3%):
800 Fiserv, Inc.(b)............................................ 47
300 Sterling Commerce, Inc.(b)(c).............................. 12
-------
59
-------
Diversified Operations (0.5%):
900 Cognizant Corp............................................. 48
800 Tyco International Ltd..................................... 44
-------
92
-------
Educational Services (0.2%):
975 Sylvan Learning Systems, Inc.(b)........................... 30
-------
Electrical & Electronic (0.8%):
800 Emerson Electric Co........................................ 49
800 General Electric Co........................................ 67
781 Molex, Inc................................................. 20
-------
136
-------
Environmental Services (0.2%):
900 USA Waste Services, Inc.(b)(c)............................. 42
-------
Financial Services (2.4%):
600 American Express Co........................................ 61
800 Associates First Capital Corp.............................. 60
200 CMAC Investment Corp....................................... 12
800 Concord EFS, Inc.(b)....................................... 26
900 Federal Home Loan Mortgage Corp............................ 41
800 Finova Group, Inc.......................................... 44
300 Household International, Inc.(c)........................... 41
1,800 MBNA Corp.(c).............................................. 57
650 Nationwide Financial Services, Inc......................... 28
700 Newcourt Credit Croup, Inc................................. 34
-------
404
-------
Food & Beverage (0.2%):
500 The Coca-Cola Co........................................... 39
-------
Food Products & Services (0.6%):
800 Bestfoods.................................................. 45
1,500 Safeway, Inc.(b)(c)........................................ 55
-------
100
-------
Funeral Services (0.8%):
2,500 Service Corp. International................................ 103
1,200 Stewart Enterprises........................................ 32
-------
135
-------
Health & Personal Care (0.1%):
600 Alberto-Culver Co.(c)...................................... 16
-------
</TABLE>
Continued
91
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Health Care - Services (0.9%):
500 Health Care & Retirement Corp.(b).......................... $ 19
1,950 Health Management Associates, Inc.(b)(c)................... 59
1,100 HEALTHSOUTH Corp.(b)(c).................................... 31
500 Quintiles Transnational Corp.(b)(c)........................ 24
600 Total Renal Care Holdings, Inc.(b)(c)...................... 18
-------
151
-------
Hotels & Lodging (0.4%):
800 Capstar Hotel(b)........................................... 23
1,200 Marriott International, Class A(c)......................... 42
-------
65
-------
Industrial Goods & Services (0.2%):
400 United Technologies Corp................................... 38
-------
Insurance (1.8%):
550 American International Group, Inc.......................... 68
800 Conseco, Inc.(c)........................................... 37
700 Marsh & McLennan Cos., Inc................................. 61
1,000 MGIC Investment Corp.(c)................................... 60
1,725 SunAmerica, Inc.(c)........................................ 85
-------
311
-------
Manufacturing - Consumer Goods (0.3%):
900 Newell Co.................................................. 43
-------
Medical Equipment & Supplies (1.0%):
900 Guidant Corp............................................... 59
600 Henry Schein, Inc.(b)...................................... 23
600 Medtronic, Inc............................................. 33
1,400 Omnicare, Inc.(c).......................................... 49
-------
164
-------
Office Equipment & Services (0.4%):
500 Hewlett-Packard Co......................................... 31
400 Xerox Corp................................................. 41
-------
72
-------
Oil & Gas (0.6%):
1,050 Baker Hughes(c)............................................ 38
900 Halliburton Co............................................. 43
300 Schlumberger Ltd.(c)....................................... 23
-------
104
-------
Oilfield Services & Equipment (0.4%):
300 Camco International, Inc................................... 21
400 Cooper Cameron Corp.(b).................................... 24
1,400 Newpark Resources, Inc.(b)................................. 25
-------
70
-------
Pharmaceuticals (1.9%):
300 Biovail Corp International(b)(c)........................... 10
600 Dura Pharmaceuticals, Inc.(b).............................. 16
1,100 Eli Lilly & Co............................................. 68
400 Johnson & Johnson(c)....................................... 28
300 Jones Medical Industries, Inc.............................. 9
1,000 Pfizer, Inc................................................ 104
1,500 Warner-Lambert Co.......................................... 96
-------
331
-------
Rental Equipment Furniture (0.1%):
600 U.S. Rentals, Inc.(b)...................................... 19
-------
Resorts & Entertainment (0.6%):
900 Carnival Cruise Lines...................................... 61
400 Royal Caribbean Cruises Ltd................................ 28
700 Signature Resorts, Inc.(b)................................. 11
-------
100
-------
Retail Stores (2.6%):
850 Consolidated Stores Corp.(b)............................... 32
850 Costco Companies, Inc.(b).................................. 49
500 CVS Corp................................................... 35
800 Dayton Hudson Corp......................................... 37
593 Dollar General(c).......................................... 23
1,050 Home Depot, Inc............................................ 83
600 Linens 'N Things, Inc.(b).................................. 19
900 Lowe's Cos.(c)............................................. 71
1,400 MSC Industrial Direct Co., Inc.(b)......................... 37
500 Office Depot, Inc.(b)(c)................................... 15
1,300 Walgreen Co.(c)............................................ 46
-------
447
-------
Savings & Loans Thrift (0.2%):
1,100 Ocwen Financial Services Corp.(b).......................... 27
-------
Semiconductors (0.6%):
400 Applied Materials, Inc.(b)(c).............................. 13
600 Intel Corp................................................. 44
300 KLA-Tencor Corp.(b)........................................ 10
300 Texas Instruments.......................................... 15
600 Vitesse Semiconductor Corp.(b)............................. 15
-------
97
-------
Technology (0.2%):
200 Sanmina Corp.(b)........................................... 16
400 Uniphase Corp.(b)(c)....................................... 20
-------
36
-------
Technology - Software (0.2%):
700 Visio Corp.(b)............................................. 33
-------
</TABLE>
Continued
92
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications - Services & Equipment (2.0%):
1,000 AirTouch Communications, Inc.(b)(c)....................... $ 48
500 Electric Lightwave(b)..................................... 7
1,200 Lucent Technologies, Inc.................................. 83
500 McLeod USA, Inc.(b)....................................... 21
600 MRV Communications(b)..................................... 14
900 Nextel Communications, Inc., Series A(b).................. 21
600 Qwest Communications International, Inc.(b)............... 20
600 Teleport Communications Group, Inc.(b).................... 34
450 Tellabs, Inc.(b)(c)....................................... 31
1,300 West TeleServices Corp.(b)................................ 18
1,000 WorldCom, Inc.(b)(c)...................................... 46
-------
343
-------
Transportation & Shipping (0.1%):
500 Kansas City Southern Industries, Inc...................... 21
-------
Wholesale Distribution (0.2%):
1,000 Brightpoint, Inc.(b)(c)................................... 16
700 Richfood Holdings, Inc.................................... 17
-------
33
-------
Wholesale Distribution - Pharmaceuticals (0.5%):
1,000 Cardinal Health, Inc...................................... 89
-------
Total Common Stocks 4,788
-------
CORPORATE BONDS (20.4%):
Consumer Goods & Services (1.2%):
$200,000 Nike, Inc., 6.38%, 12/1/03................................ 203
-------
Financial Services (11.8%):
200 Associates Corp., 6.00%, 4/15/03.......................... 199
171 Banc One Auto Grantor Trust, Series 1997-B, 6.29%,
7/20/04.................................................. 172
200 Countrywide Home, 6.84%, 10/22/04......................... 206
500 EQCC Home Equity Loan Trust, 1998-1, A3F, 6.23%, 12/15/12. 500
500 First Plus Home Loan Trust, Series 1988-2, 6.32%,
11/10/13................................................. 502
150 Ford Motor Credit, 8.20%, 2/15/02......................... 160
175 General Motors Acceptance Corp., 6.38%, 12/1/01........... 176
100 Salomon Smith Barney, 6.25%, 1/15/05...................... 99
-------
2,014
-------
Food & Household Products (1.4%):
250 Nabisco, Inc., 6.38%, 2/01/35............................. 246
-------
Foreign Governments (1.1%):
175 Quebec Province, 13.00%, 10/1/13.......................... 187
-------
Industrial (4.2%):
249 Amoco Canada, 6.75%, 2/15/05............................. 260
150 Honeywell, Inc., 6.75%, 3/15/02.......................... 154
300 Monsanto Co., 6.11%, 2/03/05............................. 298
-------
712
-------
Resorts & Entertainment (0.7%):
105 Time Warner Entertainment, 9.63%, 5/01/02................ 117
-------
Total Corporate Bonds 3,479
-------
ASSET BACKED SECURITIES (1.8%):
101 Banc One Auto Grantor Trust, 6.27%, 11/20/03............. 102
200 Discover Card Master Trust, 6.05%, 8/18/08............... 200
-------
Total Asset Backed Securities 302
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (0.6%):
Government Agency Backed CMO's (0.6%):
98 Securitized Asset Sales, Inc., 7.53%, 3/25/24............ 100
-------
Total Collateralized Mortgage Obligations 100
-------
U.S. TREASURY NOTES (45.1%):
500 5.88%, 10/31/98.......................................... 501
250 5.75%, 9/30/99........................................... 251
300 5.50%, 4/15/00(c)........................................ 300
2,115 6.50%, 8/31/01........................................... 2,171
2,280 6.25%, 2/28/02........................................... 2,328
125 6.25%, 8/31/02........................................... 128
650 7.88%, 11/15/04(c)....................................... 728
1,180 7.00%, 7/15/06........................................... 1,282
-------
Total U.S. Treasury Notes 7,689
-------
REPURCHASE AGREEMENTS (3.0%):
514 Prudential Securities, 5.60%, 6/1/98, (Collaterized by
$519, FNMA ARM, 6.10%, 6/1/27, market value--$527)...... 514
-------
Total Repurchase Agreements 514
-------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (14.3%):
Repurchase Agreements (14.3%):
2,429 Paine Webber, 5.68%, 6/1/98, (See Significant Accounting
Policies, Lending Portfolio Securities in the Notes to
Financial Statements for collateral description)........ 2,429
-------
Total Short Term Securities Purchased with Collateral 2,429
-------
Total Investments (Cost $18,274)(a)--113.3% 19,301
-------
Liabilities in excess of other assets (13.3)% (2,270)
-------
Total Net Assets--100.0% $17,031
=======
</TABLE>
Continued
93
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $5. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $1,175
Unrealized depreciation....................................... (153)
------
Net unrealized appreciation................................... $1,022
======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1998.
See notes to financial statements.
94
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS (40.3%):
Advertising (0.2%):
17,450 HA-LO Industries, Inc.(b)................................. $ 540
--------
Apparel/Shoes (0.1%):
7,600 Brylane, Inc.(b).......................................... 361
--------
Banking (0.3%):
12,100 State Street Corp.(c)..................................... 834
--------
Broadcasting & Publishing (0.8%):
29,200 CanWest Global Communications Corp. ...................... 515
20,000 Chancellor Media Corp.(b)(c).............................. 836
6,550 Clear Channel Communications, Inc.(b)(c).................. 628
8,350 Consolidated Graphics, Inc.(b)............................ 427
--------
2,406
--------
Building Products (0.1%):
13,100 Royal Technologies Group Ltd.(b).......................... 353
--------
Business Services (1.9%):
12,700 Analog Devices, Inc.(b)(c)................................ 314
10,500 Automatic Data Processing, Inc. .......................... 668
13,700 BA Merchant Services, Inc.(b)............................. 247
7,300 Boron Lepore & Associates(b).............................. 215
12,600 Cintas Corp. ............................................. 576
8,900 Hagler Bailly, Inc.(b).................................... 245
13,400 International Telecommunications Data Systems(b).......... 330
4,400 Metzler Group, Inc.(b).................................... 123
10,450 NCO Group, Inc.(b)........................................ 233
7,700 Nova Corp.(b)............................................. 254
15,100 Novacare Employee Services(b)............................. 132
24,750 Paychex, Inc. ............................................ 891
8,400 SOS Staffing Services(b).................................. 164
17,350 Staff Leasing, Inc.(b)(c)................................. 494
21,200 SunGard Data Systems, Inc.(b)(c).......................... 723
--------
5,609
--------
Commercial Services (0.4%):
7,400 Central Parking Corp.(c).................................. 332
8,800 Iron Mountain, Inc.(b).................................... 365
22,200 Renaissance Worldwide, Inc.(b)(c)......................... 418
--------
1,115
--------
Computer Hardware (0.4%):
12,100 Apex PC Solutions, Inc.(b)................................ 304
9,500 Insight Enterprises(b).................................... 297
12,700 Sun Microsystems, Inc.(b)(c).............................. 509
--------
1,110
--------
Computer Services (0.1%):
5,700 Quickresponse Services(b)................................. 202
--------
Computer Software & Peripherals (4.0%):
13,600 Aspen Technologies, Inc.(b)............................... 606
13,300 Axent Technologies(b)..................................... 328
31,400 BMC Software(b)(c)........................................ 1,446
19,200 Cadence Design Systems, Inc.(b)(c)........................ 677
12,700 Cambridge Technology Partners, Inc.(b).................... 637
11,800 CBT Group(b)(c)........................................... 587
16,800 Cisco Systems, Inc.(b).................................... 1,271
4,900 HBO & Company............................................. 283
12,000 JDA Software Group, Inc.(b)............................... 542
18,600 Microsoft Inc.(b)......................................... 1,577
29,600 Parametric Technology Corp.(b)(c)......................... 907
17,000 Pegasystems(b)(c)......................................... 368
23,300 PeopleSoft, Inc.(b)(c).................................... 1,018
28,988 VERITAS Software Corp.(b)................................. 1,169
--------
11,416
--------
Consumer Goods & Services (0.9%):
8,700 Apollo Group, Inc.(b)(c).................................. 278
11,100 Clorox Co. ............................................... 927
6,200 DVI, Inc.(b).............................................. 132
16,600 Procter & Gamble Co.(c)................................... 1,393
--------
2,730
--------
Correctional Facilities (0.2%):
7,100 Corrections Corp. of America(b)........................... 162
18,600 Wackenhut Corrections Corp.(b)............................ 451
8,400 Youth Services International, Inc.(b)..................... 60
--------
673
--------
Cosmetics/Personal Care (0.2%):
5,400 Gillette Co. ............................................. 632
--------
Data Processing & Reproduction (0.6%):
7,200 Applied Graphics Technologies, Inc.(b).................... 347
12,550 Deltek Systems, Inc.(b)................................... 265
13,900 Fiserv, Inc.(b)........................................... 820
6,200 Sterling Commerce, Inc.(b)(c)............................. 246
--------
1,678
--------
Diversified Operations (0.8%):
14,400 Bodycote International(b)................................. 295
19,700 Cognizant Corp. .......................................... 1,050
17,200 Tyco International Ltd.(c)................................ 952
--------
2,297
--------
Educational Services (0.2%):
16,950 Sylvan Learning Systems, Inc.(b).......................... 517
--------
</TABLE>
Continued
95
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical & Electronic (0.9%):
14,700 Emerson Electric(c)....................................... $ 893
16,100 General Electric Co. ..................................... 1,342
13,296 Molex, Inc. .............................................. 347
--------
2,582
--------
Environmental Services (0.4%):
8,800 American Disposal Services(b)............................. 345
19,100 USA Waste Services, Inc.(b)(c)............................ 901
--------
1,246
--------
Financial Services (3.8%):
13,800 American Express Co. ..................................... 1,416
15,000 Associates First Capital Corp. ........................... 1,122
4,000 CMAC Investment Corp. .................................... 242
37,550 Concord EFS, Inc.(b)(c)................................... 1,197
19,100 Federal Home Loan Mortgage Corp. ......................... 869
14,000 Finova Group, Inc.(c)..................................... 774
19,900 Franchise Mortgage Acceptance Co.(b)...................... 438
7,300 Household International(c)................................ 988
20,464 Imperial Credit Industries, Inc.(b)....................... 432
37,200 MBNA Corp.(c)............................................. 1,179
8,650 Metris Cos., Inc.(c)...................................... 495
14,000 Nationwide Financial Services, Inc. ...................... 608
14,200 Newcourt Credit Group, Inc. .............................. 698
15,800 Sirrom Capital Corp.(c)................................... 421
--------
10,879
--------
Food & Beverage (0.3%):
3,900 Panamerican Beverages ADR................................. 132
10,900 The Coca-Cola Co. ........................................ 854
--------
986
--------
Food Products & Services (0.7%):
16,000 Bestfoods................................................. 903
31,000 Safeway, Inc.(b)(c)....................................... 1,130
--------
2,033
--------
Funeral Services (0.9%):
12,400 Equity Corp. International(b)............................. 295
46,900 Service Corp. International............................... 1,917
19,000 Stewart Enterprises....................................... 513
--------
2,725
--------
Health & Personal Care (0.1%):
10,600 Alberto-Culver Co.(c)..................................... 286
--------
Health Care - Services (2.2%):
7,700 Advanced Health Corp.(b)(c)............................... 96
23,800 American Oncology Resources, Inc.(b)...................... 303
11,550 Capital Senior Living Corp.(b)............................ 149
10,000 Carematrix Corp.(b)(c).................................... 231
6,500 Concentra Managed Care, Inc.(b)........................... 152
11,200 Envoy Corp.(b)(c)......................................... 491
8,000 Health Care & Retirement Corp.(b)......................... 310
33,150 Health Management Assoc.(b)(c)............................ 991
4,100 Healthcare Financial Partners, Inc.(b).................... 201
21,300 HEALTHSOUTH Corp.(b)(c)................................... 604
16,600 NCS Healthcare, Inc.(b)(c)................................ 479
31,400 Orthodontic Centers of America, Inc.(b)................... 665
15,800 Parexel International Corp.(b)(c)......................... 474
8,600 Quintiles Transnational Corp.(b)(c)....................... 418
13,550 Serologicals Corp.(b)..................................... 400
11,600 Total Renal Care Holdings, Inc.(b)(c)..................... 356
--------
6,320
--------
Hotels & Lodging (0.4%):
12,800 Capstar Hotel(b)(c)....................................... 374
23,000 Marriott International, Class A(c)........................ 800
--------
1,174
--------
Industrial Goods & Services (0.6%):
15,800 Monsanto Co. ............................................. 875
10,000 United Technologies Corp. ................................ 940
--------
1,815
--------
Insurance (2.4%):
12,150 American International Group, Inc. ....................... 1,504
800 Annuity and Life Re(b).................................... 18
15,000 Conseco, Inc.(c).......................................... 699
14,000 Marsh & McLennan Cos., Inc.(c)............................ 1,226
20,600 MGIC Investment Corp.(c).................................. 1,235
44,700 SunAmerica, Inc.(c)....................................... 2,174
--------
6,856
--------
Manufactured Housing (0.0%):
6,750 Modtech, Inc.(b).......................................... 132
--------
Manufacturing-Consumer Goods (0.3%):
15,300 Newell Cos., Inc. ........................................ 738
--------
Medical Equipment & Supplies (1.3%):
3,000 Cryolife, Inc.(b)......................................... 50
17,900 Guidant Corp. ............................................ 1,154
11,600 Henry Schein, Inc.(b)..................................... 447
10,400 Medquist, Inc.(b)......................................... 456
11,100 Medtronic, Inc.(c)........................................ 617
7,500 Molecular Devices Corp.(b)................................ 113
23,800 Omnicare, Inc.(c)......................................... 834
4,800 Sabratek Corp.(b)(c)...................................... 126
6,500 Schick Technologies(b)(c)................................. 120
--------
3,917
--------
</TABLE>
Continued
96
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Office Equipment & Services (0.5%):
8,300 Hewlett-Packard Co. ...................................... $ 516
8,000 Xerox Corp. .............................................. 822
--------
1,338
--------
Oil & Gas (0.7%):
19,600 Baker Hughes(c)........................................... 706
17,000 Halliburton Co.(c)........................................ 805
6,500 Schlumberger Ltd.(c)...................................... 507
--------
2,018
--------
Oilfield Services & Equipment (0.6%):
4,600 Camco International, Inc. ................................ 321
6,800 Cooper Cameron Corp.(b)................................... 405
23,800 IRI International Corp.(b)................................ 308
10,600 Key Energy Group, Inc.(b)................................. 174
24,200 Newpark Resources, Inc.(b)................................ 440
12,200 Omni Energy Services(b)................................... 212
--------
1,860
--------
Pharmaceuticals (2.5%):
6,500 Biovail Corp. International(b)(c)......................... 221
27,500 Dura Pharmaceuticals, Inc.(b)(c).......................... 717
20,000 Eli Lilly & Co. .......................................... 1,229
8,100 Johnson & Johnson(c)...................................... 559
21,300 Jones Pharma Incorporation(c)............................. 655
20,000 Pfizer, Inc. ............................................. 2,095
26,400 Warner-Lambert Co. ....................................... 1,685
--------
7,161
--------
Records Management (0.0%):
2,800 Lason, Inc.(b)............................................ 114
--------
Rental Equipment/Furniture (0.4%):
15,400 Rental Service Corp.(b)................................... 400
14,700 Renter's Choice, Inc.(b).................................. 391
10,000 US Rentals, Inc.(b)....................................... 324
--------
1,115
--------
Resorts & Entertainment (0.9%):
17,200 Carnival Cruise Lines..................................... 1,165
10,700 Family Golf Centers, Inc.(b)(c)........................... 281
6,700 Royal Caribbean Cruises Ltd.(c)........................... 467
34,500 Signature Resorts, Inc.(b)(c)............................. 535
14,700 Vistana, Inc.(b).......................................... 312
--------
2,760
--------
Restaurants (0.2%):
14,900 Cheesecake Factory(b)..................................... 301
16,900 Landry's Seafood Restaurants(b)........................... 383
--------
684
--------
Retail Stores (3.2%):
14,781 Consolidated Stores Corp.(b)(c)........................... 564
16,300 Costco Companies Inc.(b).................................. 943
10,500 CVS Corp. ................................................ 737
14,400 Dayton Hudson Corp. ...................................... 668
11,093 Dollar General(c)......................................... 423
20,675 Home Depot, Inc.(c)....................................... 1,625
10,000 Linens 'N Things, Inc.(b)................................. 321
20,100 Lowe's Cos.(c)............................................ 1,592
22,800 MSC Industrial Direct Co.(b).............................. 608
9,700 Office Depot, Inc.(b)(c).................................. 286
8,100 Party City Corp.(b)....................................... 238
7,900 The Men's Wearhouse, Inc.(b).............................. 337
28,300 Walgreen Co.(c)........................................... 996
--------
9,338
--------
Savings & Loans/Thrift (0.2%):
18,000 Ocwen Financial Services Corp.(b)......................... 439
--------
Semiconductors (0.7%):
10,600 Applied Materials(b)(c)................................... 339
11,900 Intel Corp. .............................................. 850
6,200 KLA Instruments Corp.(b).................................. 210
6,200 Texas Instruments......................................... 319
11,200 Vitesse Semiconductor Corp.(b)............................ 287
--------
2,005
--------
Technology (0.6%):
11,300 Sanmina Corp.(b)(c)....................................... 880
19,450 Technology Solutions Co.(b)............................... 587
7,200 Uniphase Corp.(b)(c)...................................... 367
--------
1,834
--------
Technology-Software (0.5%):
30,750 Visio Corp.(b)............................................ 1,441
--------
Telecommunications - Services & Equipment (2.6%):
19,700 AirTouch Communications, Inc.(b)(c)....................... 938
8,900 Electric Lightwave(b)..................................... 121
25,400 Lucent Technologies....................................... 1,803
8,500 McLeod USA, Inc.(b)....................................... 353
9,900 MRV Communications(b)(c).................................. 230
17,800 Nextel Communications, Inc., Series A(b).................. 419
10,850 Pacific Gateway Exchange, Inc.(b)......................... 462
6,000 Philippine Long Distance--Sp ADR.......................... 152
10,200 Qwest Communications International(b)(c).................. 337
13,600 SmarTalk Teleservices, Inc.(b)(c)......................... 250
11,300 Teleport Communications(b)................................ 632
8,700 Tellabs, Inc.(b).......................................... 598
8,000 USN Communications, Inc.(b)............................... 104
</TABLE>
Continued
97
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications - Services & Equipment, continued:
22,900 West TeleServices Corp.(b)................................ $ 315
19,200 WorldCom, Inc.(b)......................................... 874
--------
7,588
--------
Transportation & Shipping (0.2%):
8,400 Eagle USA Airfreight, Inc.(b)............................. 274
9,800 Kansas City Southern Industries, Inc. .................... 415
--------
689
--------
Wholesale Distribution (0.4%):
55,666 Brightpoint, Inc.(b)(c)................................... 880
11,050 Richfood Holdings, Inc. .................................. 270
--------
1,150
--------
Wholesale Distribution-Pharmaceuticals (0.6%):
18,400 Cardinal Health, Inc.(c).................................. 1,640
--------
Total Common Stocks 117,336
--------
FOREIGN COMMON STOCKS (9.6%):
ARGENTINA (0.1%):
Oil & Gas Exploration, Production & Services (0.1%):
9,000 Sociedad Anonima, ADR..................................... 280
--------
AUSTRALIA (0.2%):
Building Products/Construction (0.0%):
25,000 Leighton Holdings......................................... 85
--------
Diversified Operations (0.0%):
16,689 Wesfarmers(b)............................................. 135
--------
Pharmaceuticals (0.2%):
34,500 CSL Ltd.(b)............................................... 232
--------
Real Estate (0.0%):
6,800 Lend Lease Corp .......................................... 145
--------
597
--------
AUSTRIA (0.0%):
Engineering (0.0%):
800 Va Technologies........................................... 108
--------
BELGIUM (0.2%):
Diversified Operations (0.1%):
700 Bel Barco N.V. ........................................... 179
--------
Retail Stores/Catalog (0.1%):
700 Colruyt SA(b)............................................. 449
--------
628
--------
CANADA (0.2%):
Computer Software (0.1%):
13,500 Discreet Logic, Inc.(b)................................... 189
--------
Electronic Components/Instruments (0.1%):
19,500 CAE Inc. ................................................. 163
--------
Manufacturing-Consumer Goods (0.0%):
7,500 Bombardier, Inc., Class B................................. 193
--------
545
--------
CHILE (0.0%):
Telecommunications (0.0%):
6,500 Cia Telecomunicaciones de Chile SA, ADR................... 144
--------
DENMARK (0.1%):
Apparel/Shoes (0.0%):
1,500 Carli Gry International................................... 118
--------
Pharmaceuticals (0.1%):
1,000 Novo-Nordisk AS--Series B................................. 158
--------
276
--------
FINLAND (0.2%):
Computer Software (0.1%):
1,600 TT Tieto Oy--B Shares..................................... 351
--------
Diversified Operations (0.1%):
3,600 Huhtamaki Group........................................... 199
--------
550
--------
FRANCE (1.1%):
Broadcasting & Publishing (0.1%):
1,200 Television Francaise...................................... 169
--------
Electrical & Electronic (0.2%):
3,400 Alcatel Alsthom........................................... 727
--------
Electronic Components/Instruments (0.1%):
400 Le Carbone Lorraine(b).................................... 183
--------
Engineering (0.2%):
3,840 Altran Technologies SA.................................... 786
--------
Machinery & Equipment (0.2%):
6,200 Sidel SA.................................................. 505
--------
Medical Equipment & Supplies (0.1%):
535 Essilor International..................................... 228
--------
Retail Stores/Catalog (0.2%):
640 Pinault-Printemps-Redoute................................. 527
--------
3,125
--------
GERMANY (0.7%):
Diversified Operations (0.2%):
8,000 Siemens AG................................................ 525
--------
Machinery & Equipment (0.3%):
850 Mannesmann AG(b).......................................... 791
--------
</TABLE>
Continued
98
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Manufacturing - Consumer Goods (0.2%):
3,740 Adidas-Salomon AG......................................... $ 660
--------
1,976
--------
GREECE (0.1%):
Beverages & Tobacco (0.0%):
4,000 Hellenic Bottling Co. SA.................................. 134
--------
Telecommunications - Services & Equipment (0.1%):
5,900 Hellenic Telecommunication Organization................... 173
--------
307
--------
HONG KONG (0.2%):
Automobiles (0.0%):
293,000 Qingling Motors Co.(b).................................... 115
--------
Electronic Components/Instruments (0.2%):
40,500 Johnson Electric Holdings Ltd. ........................... 157
--------
Food Products & Services (0.0%):
130,000 Ng Fung Hong Ltd.(b)...................................... 111
--------
Utilities - Eletrical & Gas (0.0%):
96,976 Hong Kong & China Gas Co. Ltd.(b) ........................ 127
--------
510
--------
ISRAEL (0.3%):
Computer Hardware (0.1%):
8,100 Nice Systems Ltd.(b)...................................... 295
--------
Computer Software (0.0%):
5,200 MEMCO Software(b)......................................... 116
--------
Medical Equipment & Supplies (0.1%):
6,700 ESC Medical Systems(b)(c)................................. 187
--------
Pharmaceuticals (0.1%):
5,900 Teva Pharmaceutical Industries, Ltd. ADR.................. 242
--------
840
--------
ITALY (0.3%):
Electronic Components/Instruments (0.1%):
6,500 Gewiss SpA................................................ 148
--------
Jewelry (0.1%):
60,000 Bulgari SpA............................................... 357
--------
Medical Equipment & Supplies (0.1%):
4,700 Safilo SpA................................................ 177
--------
Telecommunications (0.1%):
45,000 Telecom Italia Mobile SpA................................. 266
--------
948
--------
JAPAN (1.7%):
Computer Software (0.2%):
7,000 TDK Corp. ................................................ $ 550
--------
Consumer Electronics (0.1%):
5,000 Sony Corporation.......................................... 422
--------
Electrical & Electronic (0.3%):
2,600 Keyence Corp. ............................................ 313
6,000 Rohm Co. ................................................. 624
--------
937
--------
Electronic Components/Instruments (0.1%):
21,000 Omron Corp.(b)............................................ 317
--------
Food Products & Services (0.1%):
7,000 Matsumotokiyoshi.......................................... 241
--------
Machinery & Equipment (0.0%):
600 Union Tool(b)............................................. 21
--------
Manufacturing - Consumer Goods (0.4%):
20,000 Canon..................................................... 475
35,000 Casio Computer............................................ 326
8,000 Fuji Photo Film Ltd. ..................................... 271
--------
1,072
--------
Office Equipment & Services (0.1%):
24,000 Ricoh Co. Ltd. ........................................... 259
--------
Pharmaceuticals (0.3%):
14,000 Sankyo Co. Ltd. .......................................... 337
23,000 Takeda Chemical Industries................................ 595
--------
932
--------
Toys (0.1%):
2,700 Nintendo(b)............................................... 252
--------
5,003
--------
MEXICO (0.2%):
Beverages & Tobacco (0.1%):
7,540 Fomento Economico ADR..................................... 248
--------
Diversified Operations (0.1%):
40,000 Grupo Carso SA de CV...................................... 203
--------
451
--------
NETHERLANDS (0.8%):
Broadcasting & Publishing (0.1%):
3,100 Wolters Kluwer N.V. ...................................... 436
--------
Commercial Services (0.1%):
7,920 Getronics N.V. ........................................... 394
--------
Diversified Operations (0.1%):
8,893 Internatio-Muller NV...................................... 321
--------
</TABLE>
Continued
99
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
NETHERLANDS, CONTINUED:
Electronic Components/Instruments (0.1%):
3,400 Draka Holding............................................. $ 146
--------
Office Equipment & Services (0.4%):
9,648 Ahrend.................................................... 310
19,600 Oce Van Grinten(b)........................................ 824
--------
1,134
--------
2,431
--------
NEW ZEALAND (0.0%):
Appliances & Household Products (0.0%):
41,819 Fisher & Paykel Industries Ltd. .......................... 120
--------
PORTUGAL (0.2%):
Telecommunications (0.2%):
11,000 Portugal Telecom, SA ADR.................................. 580
--------
SOUTH AFRICA (0.2%):
Beverages & Tobacco (0.0%):
4,500 South African Breweries Ltd.(b)........................... 127
--------
Insurance (0.0%):
5,000 Liberty Life Association of Africa(b)..................... 139
--------
Investment Company (0.2%):
26,156 Dimension Data Holdings Ltd.(b)........................... 175
--------
441
--------
SPAIN (0.4%):
Apparel/Shoes (0.1%):
9,000 Cortefiel SA(b)........................................... 204
--------
Beverages & Tobacco (0.1%):
15,000 Tabacalera SA(b).......................................... 324
--------
Commercial Services (0.2%):
38,970 Prosegur, CIA de Seguridad SA(b).......................... 493
--------
1,021
--------
SWEDEN (0.5%):
Building Products/Construction (0.0%):
6,200 Lindab AB................................................. 119
--------
Industrial Goods & Services (0.2%):
17,100 Atlas Copco AB--A Shares.................................. 496
--------
Metals (0.0%):
3,300 Assa Abloy AB--Series B................................... 129
--------
Telecommunications (0.2%):
9,000 Nokia Corp., ADR.......................................... 584
--------
1,328
--------
SWITZERLAND (0.5%):
Food Products & Services (0.3%):
345 Nestle SA(b).............................................. $ 740
--------
Pharmaceuticals (0.2%):
200 Novartis AG............................................... 339
50 Roche Holdings AG......................................... 516
--------
855
--------
1,595
--------
UNITED KINGDOM (1.4%):
Aerospace/Defense (0.2%):
55,600 British Aerospace PLC(b).................................. 493
11,710 Cobham PLC(b)............................................. 234
--------
727
--------
Air Transportation/Related (0.1%):
45,000 Airtours PLC(b)........................................... 336
--------
Appliances & Household Products (0.0%):
13,000 DFS Furniture(b).......................................... 54
--------
Computer Software (0.2%):
15,257 Logica PLC(b)............................................. 450
--------
Engineering (0.3%):
181,067 Halma PLC(b).............................................. 381
24,000 Siebe PLC................................................. 588
--------
969
--------
Food Products & Services (0.2%):
25,000 Compass Group............................................. 489
--------
Machinery & Equipment (0.1%):
48,000 TT Group PLC(b)........................................... 290
--------
Manufacturing - Consumer Goods (0.1%):
121,000 Polypipe PLC(b)........................................... 372
--------
Metals (0.1%):
33,000 Johnson Matthey PLC....................................... 333
--------
4,020
--------
Total Foreign Common Stocks 27,824
--------
PREFERRED STOCKS (0.5%):
BRAZIL (0.1%):
Banking (0.1%):
260,000 Banco Itau SA............................................. 156
--------
GERMANY (0.4%):
Computer Software (0.2%):
1,260 Sap AG.................................................... 698
--------
</TABLE>
Continued
100
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- --------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
GERMANY, CONTINUED:
Cosmetics/Personal Care (0.1%):
190 Wella AG(b)............................................... $ 183
--------
Medical Equipment & Supplies (0.1%):
1,850 Fresenius................................................. 394
--------
1,275
--------
Total Preferred Stocks 1,431
--------
RIGHTS FOREIGN SECURITIES (0.0%):
4,408 Hong Kong & China Gas..................................... --
--------
Total Rights Foreign Securities --
--------
GOVERNMENT OBLIGATIONS (16.0%):
Federal National Mortgage Association (4.1%):
$3,000 8.00%, 2/25/21, Series G92-35............................. 3,099
6,443 7.00%, 9/1/27............................................. 6,533
2,414 6.50%, 11/1/27............................................ 2,400
--------
12,032
--------
Government National Mortgage Association (3.1%):
1,626 6.50%, 9/15/23--12/15/23.................................. 1,619
7,052 7.50%, 8/15/25............................................ 7,288
--------
8,907
--------
U.S. Treasury Bonds (3.7%):
5,000 7.25%, 8/15/22............................................ 5,864
3,220 6.50%, 11/15/26........................................... 3,494
1,175 6.38%, 8/15/27(c)......................................... 1,262
--------
10,620
--------
U.S. Treasury Notes (5.1%):
2,710 6.25%, 3/31/99(c)......................................... 2,726
3,800 5.88%, 8/31/99............................................ 3,815
1,700 6.50%, 8/31/01............................................ 1,745
1,835 7.00%, 7/15/06(c)......................................... 1,993
4,400 6.50%, 10/15/06........................................... 4,641
--------
14,920
--------
Total Government Obligations 46,479
--------
CORPORATE BONDS (24.0%):
Banking (2.4%):
500 Continental Bank N.A., 11.25%, 7/1/01..................... 502
2,600 First Union Lehman Bba 98-C1 A2, 6.56%, 11/18/35.......... 2,656
3,415 Swiss Bank, 7.75%, 9/1/26................................. 3,859
--------
7,017
--------
Consumer Goods & Services (1.3%):
3,825 Nike, Inc., 6.38%, 12/1/03................................ 3,878
--------
Financial Services (10.6%):
3,200 Associates Corp., 6.00%, 04/15/03........................ 3,188
2,560 Banc One Auto Grantor Trust, Series 1997--B, 6.29%,
7/20/04................................................. 2,574
2,000 Beneficial Corp., 6.77%, 08/26/04........................ 2,050
2,500 Beneficial Corp., 12.88%, 8/01/13, Callable 8/1/97 @
105.15.................................................. 2,653
3,240 Countrywide Home, 6.84%, 10/22/04........................ 3,333
700 ERAC USA Finance Co., 6.35%, 1/15/01..................... 704
2,750 Ford Motor Credit Corp., 8.20%, 2/15/02.................. 2,939
3,750 John Deere Capital, 6.35%, 3/15/01....................... 3,782
3,000 Salomon Smith Barney, 6.25%, 1/15/05..................... 2,966
268 Sasco 1996, Series 6 C, 7.50%, 8/25/26................... 273
2,748 Securitized Asset Sales, Inc., 7.53%, 3/25/24............ 2,803
3,215 Travelers Capital II, 7.75%, 12/01/36.................... 3,392
--------
30,657
--------
Food & Household Products (1.0%):
3,000 Nabisco, Inc., 6.38%, 2/1/35............................. 2,955
--------
Foreign Governments (2.1%):
3,000 Providence of Saskatchewan, 8.00%, 7/15/04............... 3,292
2,700 Quebec Province, 13.00%, 10/1/13, Callable 10/1/98 @
104.75.................................................. 2,886
--------
6,178
--------
Government Agency (1.0%):
3,000 Federal National Mortgage Corp., 6.86%, 10/16/07......... 3,034
--------
Industrial Goods & Services (3.6%):
2,700 Honeywell, Inc., 6.75%, 3/15/02.......................... 2,771
3,765 IBM Corp., 6.50%, 1/15/28................................ 3,741
3,200 Northrop-Grumman, 7.88%, 3/1/26.......................... 3,624
--------
10,136
--------
Resorts & Entertainment (0.7%):
1,850 Timer Warner Entertainment, 9.63%, 5/1/02................ 2,070
--------
Utilities-Electric (1.3%):
3,600 Cajun Electric Power, 9.52%, 3/15/19..................... 3,785
--------
Total Corporate Bonds 69,710
--------
ASSET BACKED SECURITIES (3.1%):
2,368 Banc One Auto Grantor Trust, 6.27%, 11/20/03............. 2,379
2,450 Discover Card Master Trust, 6.05%, 8/18/08............... 2,451
</TABLE>
Continued
101
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
---------- -------------------------------------------------------- --------
<C> <S> <C>
ASSET BACKED SECURITIES, CONTINUED:
$ 3,500 First Plus Home Loan Trust, Series A3, 6.27%, 5/10/13... $ 3,504
726 Lehman Federal Housing Administration, 6.78%, 3/25/08... 730
--------
Total Asset Backed Securities 9,064
--------
FLOATING RATE NOTES (1.0%):
Financial Services (1.0%):
3,000 Chase Capital, Series II, 6.22%, 2/01/27................ 2,933
--------
Total Floating Rate Notes 2,933
--------
INVESTMENT COMPANIES (1.1%):
3,076,414 Parkstone Prime Obligations Fund........................ 3,076
--------
Total Investment Companies 3,076
--------
REPURCHASE AGREEMENTS (4.3%):
$ 12,616 Prudential Securities, 5.60%, 6/1/98, (Collaterized by
$12,956, FNMA ARM, 6.24%, 2/1/35, market value-
$12,956)............................................... 12,616
--------
Total Repurchase Agreements 12,616
--------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (17.0%):
Commercial Paper (4.5%):
13,045 Glencore Asset Funding, 5.63%, 6/4/98................... 12,984
--------
Floating Rate Note (5.2%):
10,000 Bankers Trust, 5.64%, 9/11/98........................... 9,996
5,000 Sigma Finance, Inc., 5.69%, 9/9/98...................... 5,000
--------
14,996
--------
Repurchase Agreements (7.3%):
10,000 FUJI Triparty, 5.65%, 6/1/98, (Collateralized by
$10,352, U.S. Treasury Note, 8.50%, 2/15/00, market
value-$10,870)......................................... 10,000
11,607 Paine Webber, 5.68%, 6/1/98, (See Significant Accounting
Policies, Lending Portfolio Securities in the Notes to
Financial Statements for collateral)................... 11,607
--------
21,607
--------
Total Short Term Securities Purchased with Collateral 49,587
--------
Total Investments (Cost $301,700)(a)--116.9% 340,056
Liabilities in excess of other assets (16.9)% (49,204)
--------
Total Net Assets--100.0% $290,852
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $89. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $43,003
Unrealized depreciation...................................... (4,736)
-------
Net unrealized appreciation.................................. $38,267
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1998.
See notes to financial statements.
102
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS (52.7%):
Advertising (0.3%):
3,200 HA-LO Industries, Inc.(b)................................... $ 99
-------
Apparel/Shoes (0.2%):
1,500 Brylane, Inc.(b)............................................ 71
-------
Banking (0.3%):
1,300 State Street Corp.(c)....................................... 90
-------
Broadcasting & Publishing (1.4%):
5,700 CanWest Global Communications Corp. ........................ 100
4,000 Chancellor Media Corp.(b)(c)................................ 168
1,250 Clear Channel Communications, Inc.(b)....................... 120
1,500 Consolidated Graphics, Inc.(b).............................. 77
-------
465
-------
Building Products (0.2%):
2,550 Royal Technologies Group Ltd.(b)............................ 69
-------
Business Services (3.0%):
2,500 Analog Devices, Inc.(b)(c).................................. 62
1,300 Automatic Data Processing, Inc. ............................ 83
2,700 BA Merchant Services, Inc.(b)............................... 49
1,300 Boron Lepore & Associates(b)................................ 38
2,300 Cintas Corp. ............................................... 105
1,600 Hagler Bailly, Inc.(b)...................................... 44
2,450 International Telecommunications Data Systems(b)............ 60
800 Metzler Group, Inc.(b)...................................... 22
1,900 NCO Group, Inc.(b).......................................... 42
1,400 Nova Corp.(b)............................................... 46
2,800 Novacare Employee Services(b)............................... 25
4,725 Paychex, Inc. .............................................. 171
1,600 SOS Staffing Services(b).................................... 31
3,200 Staff Leasing, Inc.(b)...................................... 91
4,200 SunGard Data Systems, Inc.(b)(c)............................ 143
-------
1,012
-------
Chemicals (0.3%):
2,100 Monsanto Co. ............................................... 116
-------
Commercial Services (0.6%):
1,600 Central Parking Corp.(c) ................................... 72
1,600 Iron Mountain, Inc.(b)...................................... 66
4,100 Renaissance Worldwide, Inc.(b)(c)........................... 77
-------
215
-------
Computer Hardware (0.5%):
2,250 Apex PC Solutions, Inc.(b).................................. 57
1,750 Insight Enterprises(b)...................................... 55
1,500 Sun Microsystems, Inc.(b)(c)................................ 59
-------
171
-------
Computer Services (0.1%):
1,000 Quickresponse Services(b)................................... 35
-------
Computer Software & Peripherals (5.3%):
2,550 Aspen Technologies, Inc.(b)................................. 114
2,500 Axent Technologies(b)....................................... 62
4,600 BMC Software(b)............................................. 212
3,800 Cadence Design Systems, Inc.(b)(c).......................... 134
2,600 Cambridge Technology Partners, Inc.(b)...................... 130
2,400 CBT Group(b)(c)............................................. 119
2,000 Cisco Systems, Inc.(b)...................................... 151
600 HBO & Company............................................... 35
2,200 JDA Software Group, Inc.(b)................................. 99
2,200 Microsoft, Inc.(b).......................................... 187
4,400 Parametric Technology Corp.(b)(c)........................... 135
3,100 Pegasystems(b)(c)........................................... 67
3,900 PeopleSoft, Inc.(b)(c)...................................... 170
5,475 VERITAS Software Corp.(b)................................... 220
-------
1,835
-------
Consumer Goods & Services (1.0%):
1,575 Apollo Group, Inc.(b)(c).................................... 50
1,300 Clorox Co. ................................................. 109
1,100 DVI, Inc.(b)................................................ 23
2,000 Procter & Gamble Co.(c) .................................... 168
-------
350
-------
Correctional Facilities (0.4%):
1,300 Corrections Corp. of America(b)............................. 30
3,400 Wackenhut Corrections Corp.(b).............................. 82
1,600 Youth Services International, Inc.(b)....................... 12
-------
124
-------
Cosmetics/Personal Care (0.2%):
600 Gillette Co. ............................................... 70
-------
Data Processing & Reproduction (1.0%):
1,300 Applied Graphics Technologies, Inc.(b)...................... 63
2,300 Deltek Systems, Inc.(b)..................................... 49
2,700 Fiserv, Inc.(b)............................................. 158
1,300 Sterling Commerce, Inc.(b)(c)............................... 52
-------
322
-------
Diversified Operations (0.9%):
3,900 Bodycote International(b)................................... 80
2,100 Cognizant Corp. ............................................ 112
1,900 Tyco International Ltd. (c)................................. 105
-------
297
-------
Educational Services (0.3%):
3,300 Sylvan Learning Systems, Inc.(b)............................ 101
-------
</TABLE>
Continued
103
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Electrical & Electronic (1.0%):
1,800 Emerson Electric............................................ $ 109
1,800 General Electric Co. ....................................... 150
2,787 Molex, Inc. ................................................ 73
-------
332
-------
Environmental Services (0.5%):
1,650 American Disposal Services(b)............................... 65
2,100 USA Waste Services, Inc.(b)(c).............................. 99
-------
164
-------
Financial Services (4.5%):
1,400 American Express Co. ....................................... 144
2,000 Associates First Capital Corp. ............................. 150
700 CMAC Investment Corp. ...................................... 42
7,000 Concord EFS, Inc. (b)....................................... 222
2,100 Federal Home Loan Mortgage Corp. ........................... 96
2,600 Finova Group, Inc.(c)....................................... 144
3,650 Franchise Mortgage Acceptance Co.(b)........................ 80
900 Household International(c).................................. 122
3,800 Imperial Credit Industries, Inc.(b)......................... 80
4,300 MBNA Corp.(c)............................................... 136
1,600 Metris Cos., Inc.(c)........................................ 92
2,200 Nationwide Financial Services, Inc. ........................ 96
1,500 Newcourt Credit Group, Inc. ................................ 74
2,900 Sirrom Capital Corp.(c)..................................... 77
-------
1,555
-------
Food & Beverage (0.4%):
1,000 Panamerican Beverages ADR................................... 34
1,200 The Coca-Cola Co. .......................................... 94
-------
128
-------
Food Products & Services (0.7%):
2,000 Bestfoods................................................... 113
3,300 Safeway, Inc.(b)(c)......................................... 120
-------
233
-------
Funeral Services (1.4%):
2,300 Equity Corp. International(b)............................... 55
7,400 Service Corp. International................................. 302
3,800 Stewart Enterprises......................................... 103
-------
460
-------
Health & Personal Care (0.2%):
1,900 Alberto-Culver Co.(c)....................................... 51
-------
Health Care - Services (3.5%):
1,400 Advanced Health Corp.(b)(c)................................. 18
4,400 American Oncology Resources, Inc.(b)........................ 56
2,100 Capital Senior Living Corp.(b).............................. 27
1,800 Carematrix Corp.(b)(c)...................................... 42
1,200 Concentra Managed Care, Inc.(b)............................. 28
2,100 Envoy Corp.(b)(c)........................................... 92
1,700 Health Care & Retirement Corp.(b)........................... 66
6,550 Health Management Assoc.(b)(c).............................. 194
700 Healthcare Financial Partners, Inc.(b)...................... 34
2,500 HEALTHSOUTH Corp.(b)(c)..................................... 71
3,100 NCS Healthcare, Inc.(b)(c).................................. 90
5,800 Orthodontic Centers of America, Inc.(b)..................... 123
2,900 Parexel International Corp.(b).............................. 87
1,800 Quintiles Transnational Corp.(b)(c)......................... 88
2,550 Serologicals Corp.(b)....................................... 75
2,600 Total Renal Care Holdings, Inc.(b)(c)....................... 80
-------
1,171
-------
Hotels & Lodging (0.5%):
2,600 Capstar Hotel(b)............................................ 76
2,800 Marriott International, Class A(c).......................... 97
-------
173
-------
Industrial Goods & Services (0.3%):
1,000 United Technologies Corp. .................................. 94
-------
Insurance (2.4%):
1,400 American International Group, Inc. ......................... 173
100 Annuity and Life Re(b)...................................... 2
1,800 Conseco, Inc.(c)............................................ 84
1,700 Marsh & McLennan Cos., Inc. ................................ 149
2,300 MGIC Investment Corp.(c).................................... 138
5,250 SunAmerica, Inc.(c)......................................... 256
-------
802
-------
Manufactured Housing (0.1%):
1,200 Modtech, Inc.(b)............................................ 24
-------
Manufacturing - Consumer Goods (0.4%):
3,000 Newell Cos., Inc. .......................................... 145
-------
Medical Equipment & Supplies (1.9%):
600 Cryolife, Inc.(b)........................................... 10
2,500 Guidant Corp. .............................................. 161
2,400 Henry Schein, Inc.(b)....................................... 92
1,900 Medquist, Inc.(b)........................................... 83
1,300 Medtronic, Inc. ............................................ 72
1,400 Molecular Devices Corp.(b).................................. 21
4,700 Omnicare, Inc.(c)........................................... 166
900 Sabratek Corp.(b)(c)........................................ 24
1,200 Schick Technologies(b)...................................... 22
-------
651
-------
</TABLE>
Continued
104
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Office Equipment & Services (0.4%):
1,100 Hewlett-Packard Co. ........................................ $ 68
800 Xerox Corp. ................................................ 83
-------
151
-------
Oil & Gas (0.7%):
2,400 Baker Hughes(c)............................................. 86
2,100 Halliburton Co. ............................................ 100
700 Schlumberger Ltd.(c)........................................ 55
-------
241
-------
Oilfield Services & Equipment (1.1%):
900 Camco International, Inc. .................................. 63
1,400 Cooper Cameron Corp.(b)..................................... 83
4,350 IRI International Corp.(b).................................. 56
1,950 Key Energy Group, Inc.(b)................................... 32
4,700 Newpark Resources, Inc.(b).................................. 86
2,200 Omni Energy Services(b)..................................... 38
-------
358
-------
Pharmaceuticals (2.8%):
1,500 Biovail Corp. International(b)(c)........................... 51
5,200 Dura Pharmaceuticals, Inc.(b)(c)............................ 136
2,300 Eli Lilly & Co. ............................................ 141
1,000 Johnson & Johnson(c)........................................ 69
3,900 Jones Medical Industries, Inc. ............................. 120
2,300 Pfizer, Inc. ............................................... 241
3,000 Warner-Lambert Co. ......................................... 191
-------
949
-------
Records Management (0.1%):
500 Lason, Inc.(b).............................................. 20
-------
Rental Equipment Furniture (0.6%):
2,900 Rental Service Corp.(b)..................................... 75
2,700 Renter's Choice, Inc.(b).................................... 72
2,000 U.S. Rentals, Inc.(b)....................................... 65
-------
212
-------
Resorts & Entertainment (1.3%):
2,100 Carnival Cruise Lines....................................... 142
2,000 Family Golf Centers, Inc.(b)(c)............................. 53
1,300 Royal Caribbean Cruises Ltd. ............................... 91
6,600 Signature Resorts, Inc.(b)(c)............................... 102
2,700 Vistana, Inc.(b)............................................ 57
-------
445
-------
Restaurants (0.4%):
2,750 Cheesecake Factory(b)....................................... 56
3,100 Landry's Seafood Restaurants(b)............................. 70
-------
126
-------
Retail Stores (3.7%):
2,775 Consolidated Stores(b)...................................... 106
2,000 Costco Companies, Inc.(b)................................... 116
1,100 CVS Corp. .................................................. 77
1,800 Dayton Hudson Corp. ........................................ 83
2,250 Dollar General(c)........................................... 86
2,450 Home Depot, Inc. ........................................... 193
2,200 Linens 'N Things, Inc.(b)................................... 71
2,100 Lowe's Cos.(c).............................................. 166
4,400 MSC Industrial Direct Co.(b)................................ 117
1,800 Office Depot, Inc.(b)(c).................................... 53
1,600 Party City Corp.(b)......................................... 47
1,450 The Men's Wearhouse, Inc.(b)................................ 62
3,200 Walgreen Co.(c)............................................. 113
-------
1,290
-------
Savings & Loans/Thrift (0.3%):
3,500 Ocwen Financial Services Corp.(b)........................... 85
-------
Semiconductors (0.7%):
1,000 Applied Materials(b)(c)..................................... 32
1,300 Intel Corp. ................................................ 93
700 KLA Instruments Corp.(b).................................... 24
700 Texas Instruments........................................... 36
2,200 Vitesse Semiconductor Corp.(b).............................. 56
-------
241
-------
Technology (1.0%):
2,200 Sanmina Corp.(b)............................................ 171
3,600 Technology Solutions Co.(b)................................. 109
1,400 Uniphase Corp.(b)(c)........................................ 71
-------
351
-------
Technology - Software (0.8%):
5,650 Visio Corp.(b).............................................. 265
-------
Telecommunications - Services & Equipment (3.2%):
2,150 AirTouch Communications, Inc.(b)(c)......................... 102
1,800 Electric Lightwave(b)....................................... 25
3,000 Lucent Technologies......................................... 211
1,800 McLeod USA, Inc.(b)......................................... 75
1,900 MRV Communications(b)(c).................................... 44
1,900 Nextel Communications, Inc., Series A....................... 45
2,000 Pacific Gateway Exchange, Inc.(b)........................... 85
1,500 Philippine Long Distance -Sp ADR............................ 38
2,000 Qwest Communications International(b)....................... 66
2,500 SmarTalk Teleservices, Inc.(b)(c)........................... 46
1,300 Teleport Communications(b).................................. 73
1,100 Tellabs, Inc.(b)(c)......................................... 76
1,500 USN Communications, Inc.(b)................................. 20
4,500 West TeleServices Corp.(b).................................. 62
</TABLE>
Continued
105
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
COMMON STOCKS, CONTINUED:
Telecommunications - Services & Equipment, continued:
2,500 WorldCom, Inc.(b)(c)........................................ $ 114
-------
1,082
-------
Transportation & Shipping (0.4%):
1,600 Eagle USA Airfreight, Inc.(b)............................... 52
2,100 Kansas City Southern Industries, Inc. ...................... 89
-------
141
-------
Wholesale Distribution (0.7%):
10,600 Brightpoint, Inc.(b)(c)..................................... 167
2,200 Richfood Holdings, Inc. .................................... 54
-------
221
-------
Wholesale Distribution - Pharmaceuticals (0.7%):
2,600 Cardinal Health, Inc. ...................................... 232
-------
Total Common Stocks 17,835
-------
FOREIGN COMMON STOCKS (21.4%):
ARGENTINA (0.1%):
Oil & Gas Exploration, Production & Services (0.1%):
1,300 Sociedad Anonima, ADR....................................... 40
-------
AUSTRALIA (0.6%):
Construction (0.1%):
13,000 Leighton Holdings........................................... 44
-------
Diversified Operations (0.1%):
4,274 Wesfarmers Ltd.(b).......................................... 35
-------
Pharmaceuticals (0.3%):
12,000 CSL Ltd.(b)................................................. 81
-------
Real Estate (0.1%):
1,800 Lend Lease Corp. Ltd.(b).................................... 38
-------
198
-------
AUSTRIA (0.1%):
Engineering (0.1%):
210 Va Technologies............................................. 28
-------
BELGIUM (0.4%):
Diversified Operations (0.1%):
150 Barco N.V. ................................................. 38
-------
Retail Stores/Catalog (0.3%):
175 Colrayt SA.................................................. 113
-------
151
-------
CANADA (0.4%):
Computer Software (0.1%):
2,500 Discreet Logic, Inc.(b)..................................... 35
-------
Electronic Components/Instruments (0.1%):
6,000 CAE, Inc. .................................................. 50
-------
Manufacturing - Consumer Goods (0.1%):
1,700 Bombardier, Inc. Class B.................................... 44
-------
129
-------
CHILE (0.1%):
Telecommunications (0.1%):
1,700 Telecomunicaciones de Chile SA, ADR......................... 38
-------
DENMARK (0.2%):
Apparel/Shoes (0.1%):
400 Carli Gry International..................................... 32
-------
Pharmaceuticals (0.1%):
250 Novo-Nordisk AS, Series B................................... 39
-------
71
-------
FINLAND (0.9%):
Computer Software (0.2%):
350 TT Tieto Oy-B Shares........................................ 77
-------
Diversified Operations (0.2%):
1,300 Huhtamaki Group............................................. 72
-------
Telecommunications (0.5%):
2,500 Nokia Corp., ADR............................................ 162
-------
311
-------
FRANCE (2.4%):
Broadcasting & Publishing (0.1%):
300 Television Francaise........................................ 42
-------
Electrical & Electronic (0.5%):
850 Alcatel Alstholm............................................ 182
-------
Electrical Equipment (0.1%):
100 Le Carbone Lorraine(b)...................................... 46
-------
Engineering (0.7%):
1,080 Altran Technologies SA...................................... 221
-------
Machinery & Equipment (0.4%):
1,600 Sidel SA.................................................... 130
-------
Medical Equipment & Supplies (0.2%):
135 Essilor International....................................... 58
-------
Retail Stores/Catalog (0.4%):
165 Pinault-Printemps-Redoute SA................................ 136
-------
815
-------
GERMANY (1.5%):
Diversified Operations (0.4%):
2,050 Siemens AG.................................................. 135
-------
Machinery & Equipment (0.6%):
220 Mannesmann AG............................................... 205
-------
</TABLE>
Continued
106
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
GERMANY, CONTINUED:
Manufacturing - Consumer Goods (0.5%):
965 Adidas-Solomon AG........................................... $ 170
-------
510
-------
GREECE (0.2%):
Beverages & Tobacco (0.1%):
1,000 Hellenic Bottling Co. SA.................................... 33
-------
Telecommunications--Services & Equipment (0.1%):
1,500 Hellenic Telecommunication Organization..................... 45
-------
78
-------
HONG KONG (0.4%):
Automobiles (0.1%):
75,000 Qingling Motors Co.(b)...................................... 30
-------
Electrical & Electronic (0.1%):
10,500 Johnson Electric Holdings Ltd. ............................. 40
-------
Food Products & Services (0.1%):
28,000 Ng Fung Hong Ltd.(b)........................................ 24
-------
Utilities--Electrical & Gas (0.1%):
25,300 Hong Kong & China Gas Co. Ltd.(b)........................... 33
-------
127
-------
ISRAEL (0.5%):
Computer Hardware (0.2%):
1,550 Nice Systems Ltd.(b)........................................ 57
-------
Computer Software (0.1%):
1,000 MEMCO Software(b)........................................... 22
-------
Medical Equipment & Supplies (0.1%):
1,200 ESC Medical Systems(b)(c)................................... 33
-------
Pharmaceuticals (0.1%):
1,500 Teva Pharmaceutical Industries, Ltd. ADR.................... 62
-------
174
-------
ITALY (0.7%):
Electronic Components/Instruments (0.1%):
1,800 Gewiss SpA.................................................. 41
-------
Jewelry (0.2%):
13,200 Bulgari SpA................................................. 78
-------
Medical Equipment & Supplies (0.1%):
1,000 Safilo SpA.................................................. 38
-------
Telecommunications (0.2%):
12,000 Telecom Italia Mobile SpA................................... 71
-------
228
-------
JAPAN (4.0%):
Computer Software (0.5%):
2,000 TDK Corp. .................................................. 157
-------
Consumer Electronics (0.3%):
1,300 Sony Corp. ................................................. 110
-------
Electrical & Electronic (0.9%):
700 Keyence Corp. .............................................. 84
2,000 Rohm Co. Ltd. .............................................. 208
-------
292
-------
Electronic Components/Instruments (0.3%):
6,000 Omron Corp.(b).............................................. 90
-------
Food Products & Services (0.2%):
2,000 Matsumotokiyoshi............................................ 69
-------
Manufacturing - Consumer Goods (0.8%):
5,000 Canon....................................................... 119
9,000 Casio Computer.............................................. 84
2,000 Fuji Photo Film Ltd. ....................................... 68
-------
271
-------
Office Equipment & Services (0.2%):
6,000 Ricoh Co. Ltd. ............................................. 65
-------
Pharmaceuticals (0.7%):
4,000 Sankyo Co. Ltd. ............................................ 96
6,000 Takeda Chemical Industries(b)............................... 155
-------
251
-------
Toys (0.2%):
700 Nintendo(b)................................................. 65
-------
1,370
-------
MEXICO (0.4%):
Beverages & Tobacco (0.2%):
1,960 Fomento Economico ADR....................................... 65
-------
Diversified Operations (0.2%):
11,000 Grupo Carso SA de CV........................................ 56
-------
121
-------
NETHERLANDS (1.9%):
Broadcasting & Publishing (0.3%):
800 Wolters Kluwer N.V. ........................................ 112
-------
Commercial Services (0.3%):
2,100 Getronics N.V. ............................................. 105
-------
Diversified Operations (0.3%):
2,351 Internatio-Muller N.V. ..................................... 85
-------
Electronic Components/Instruments (0.1%):
885 Draka Holding............................................... 38
-------
</TABLE>
Continued
107
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ------------------------------------------------------------ -------
<C> <S> <C>
FOREIGN COMMON STOCKS, CONTINUED:
NETHERLANDS, CONTINUED:
Office Equipment & Services (0.9%):
2,480 Ahrend...................................................... $ 80
5,200 Oce Van Grinten(b).......................................... 218
-------
298
-------
638
-------
NEW ZEALAND (0.1%):
Appliances & Household Products (0.1%):
8,770 Fisher & Paykel Industries Ltd. ............................ 25
-------
PORTUGAL (0.5%):
Telecommunications (0.5%):
3,000 Portugal Telecom, SA ADR.................................... 158
-------
SOUTH AFRICA (0.3%):
Beverages & Tobacco (0.1%):
1,100 South African Breweries Ltd.(b)............................. 31
-------
Insurance (0.1%):
1,300 Liberty Life Association of Africa(b)....................... 36
-------
Investment Company (0.1%):
6,036 Dimension Data Holdings Ltd.(b)............................. 40
-------
107
-------
SPAIN (0.8%):
Apparel/Shoes (0.2%):
2,400 Cortefiel SA(b)............................................. 54
-------
Beverages & Tobacco (0.2%):
3,800 Tabacalera SA(b)............................................ 82
-------
Commercial Services (0.4%):
9,500 Prosegur, CIA de Seguridad SA(b)............................ 121
-------
257
-------
SWEDEN (0.6%):
Building Products/Construction (0.1%):
1,550 Lindab AB................................................... 30
-------
Industrial Goods & Services (0.4%):
4,400 Atlas Copco................................................. 128
-------
Metals (0.1%):
750 Assa Abloy AB, Series B..................................... 29
-------
187
-------
SWITZERLAND (1.3%):
Food Products & Services (0.6%):
90 Nestle SA................................................... 193
-------
Pharmaceuticals (0.7%):
50 Novartis AG................................................. 85
15 Roche Holdings AG........................................... 154
-------
239
-------
432
-------
UNITED KINGDOM (3.0%):
Aerospace/Defense (0.5%):
14,400 British Aerospace PLC(b).................................... 128
2,720 Cobham PLC(b)............................................... 54
-------
182
-------
Air Transportation/Related (0.3%):
11,400 Airtours PLC(b)............................................. 85
-------
Appliances & Household Products (0.1%):
6,000 DFS Furniture Co. PLC(b).................................... 25
-------
Computer Software (0.3%):
3,929 Logica PLC(b)............................................... 116
-------
Engineering (0.7%):
46,201 Halma PLC(b)................................................ 97
6,000 Siebe PLC................................................... 147
-------
244
-------
Food Products & Services (0.4%):
6,300 Compass Group PLC........................................... 123
-------
Machinery & Equipment (0.2%):
13,000 TT Group.................................................... 78
-------
Manufacturing--Consumer Goods (0.3%):
31,000 Polypipe PLC................................................ 95
-------
Metals (0.3%):
8,500 Johnson Matthey PLC......................................... 86
-------
1,034
-------
Total Foreign Common Stocks 7,227
-------
PREFERRED STOCKS (1.1%):
BRAZIL (0.1%):
Banking (0.1%):
60,000 Banco Itau SA............................................... 36
-------
GERMANY (1.0%):
Computer Software (0.5%):
330 SAP AG...................................................... 183
-------
Cosmetics/Personal Care (0.1%):
50 Wella AG(b)................................................. 48
-------
</TABLE>
Continued
108
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
PREFERRED STOCKS, CONTINUED:
GERMANY, CONTINUED:
Medical Equipment & Supplies (0.3%):
490 Fresenuis AG............................................... $ 104
-------
335
-------
Total Preferred Stocks 371
-------
CORPORATE BONDS (13.2%):
Banking (1.5%):
$ 175 First Union Lehman, 6.56%, 11/18/35........................ 179
300 Swiss Bank, 7.75%, 9/1/26.................................. 339
-------
518
-------
Financial Services (4.6%):
300 Associates Corp., 6.00%, 4/15/03........................... 299
239 Banc One Auto Grantor Trust, Series 1997-B, 6.29%, 7/20/04. 240
300 Countrywide Home, 6.84%, 10/22/04.......................... 309
250 Ford Motor Credit Corp., 8.20%, 2/15/02.................... 267
225 Salomom Smith Barney, 6.25%, 1/15/05....................... 222
200 Travelers Capital II, 7.75%, 12/01/36...................... 211
-------
1,548
-------
Food & Household Products (1.0%):
350 Nabisco, Inc., 6.38%, 2/1/35............................... 345
-------
Foreign Governments (1.8%):
320 Providence of Saskatchewan, 8.00%, 7/15/04................. 351
230 Quebec Province, 13.00%, 10/1/13, Callable 10/1/98 @
104.75.................................................... 246
-------
597
-------
Government Agency (0.7%):
225 Federal National Mortgage Corp., 6.86%, 10/16/07........... 228
-------
Industrial (3.2%):
230 Honeywell, Inc., 6.75%, 3/15/02............................ 236
350 IBM Corp., 6.50%, 1/15/28.................................. 348
115 Monsanto Co., 6.11%, 2/3/05................................ 115
350 Northrop-Grumman, 7.88%, 3/1/26............................ 396
-------
1,095
-------
Resorts & Entertainment (0.4%):
$ 130 Timer Warner Entertainment, 9.63%, 5/1/02................... 145
-------
Total Corporate Bonds 4,476
-------
FLOATING RATE NOTES (0.4%):
Financial (0.4%):
130 Chase Capital, Series II, 6.31%*, 2/1/27.................... 127
-------
Total Floating Rate Notes 127
-------
ASSET BACKED SECURITIES (1.9%):
135 Banc One Auto Grantor Trust, 6.27%, 11/20/03................ 136
250 Discover Card Master Trust, 6.05%, 8/18/08.................. 250
270 First Plus Home Loan Trust, Series A3, 6.27%, 5/10/13....... 270
-------
Total Asset Backed Securities 656
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (1.5%):
Government Agency Backed CMO's (1.5%):
Federal National Mortgage Assoc. (1.0%):
325 Series G92-35, 8.00%, 2/25/21............................... 336
-------
Securitized Asset Sales, Inc. (0.5%):
157 7.53%, 3/25/24.............................................. 160
-------
Total Collateralized Mortgage Obligations 496
-------
U.S. TREASURY NOTES (5.0%):
500 6.25%, 3/31/99(c)........................................... 503
730 6.38%, 4/30/99(c)........................................... 735
35 6.50%, 8/31/01.............................................. 36
50 5.88%, 2/15/04.............................................. 51
325 7.88%, 11/15/04(c).......................................... 364
-------
Total U.S. Treasury Notes 1,689
-------
INVESTMENT COMPANIES (1.3%):
416,266 Parkstone Prime Obligations Fund............................ 416
23,649 Union Bank of California.................................... 24
-------
Total Investment Companies 440
-------
RIGHTS - FOREIGN SECURITIES (0.0%):
Business Services (0.0%):
1 Hong Kong & China Gas Co. Ltd. ............................. --
-------
Total Rights-Foreign Securities --
-------
</TABLE>
Continued
109
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ----------------------------------------------------------- -------
<C> <S> <C>
REPURCHASE AGREEMENTS (2.0%):
$ 686 Prudential Securities, 5.60%, 6/1/98, (Collateralized by
$692, FNMA CL, 7.00%, 6/1/28, market value-$703).......... $ 686
-------
Total Repurchase Agreements 686
-------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (20.5%):
Bankers Acceptance Notes (4.4%):
1,500 Bank of Japan, 5.64%, 6/15/98.............................. 1,494
-------
</TABLE>
<TABLE>
<CAPTION>
SHARES OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
-------------------------------------------------------------- -------
<C> <S> <C>
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL, CONTINUED:
Repurchase Agreements (16.1%):
$ 5,429 Paine Webber, 5.68%, 6/1/98, (See
Significant Accounting Policies, Lending
Portfolio Securities in the Notes to
Financial Statements for collateral).... $ 5,429
-------
Total Short Term Securities Purchased with Collateral 6,923
-------
Total Investments (Cost $35,716)(a)--121.0% 40,926
Liabilities in excess of other assets (21.0)% (7,110)
-------
Total Net Assets--100.0% $33,816
=======
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
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 May 31, 1998.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $9. Cost for federal income tax purposes differs from value by net
unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................. $6,099
Unrealized depreciation.............................. (898)
------
Net unrealized appreciation.......................... $5,201
======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1998.
See notes to financial statements.
110
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Equity Income Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
COMMON STOCKS (75.0%):
Apparel/Shoes (2.5%):
362,900 Intimate Brands, Inc.(c).................................. $ 10,411
---------
Banking (4.0%):
266,600 First Tennessee National Corp.(c)......................... 8,465
142,200 PNC Financial Corp. ...................................... 8,212
---------
16,677
---------
Building Products (2.5%):
182,600 Masco Corp.(c)............................................ 10,271
---------
Consumer Goods & Services (5.6%):
389,300 Dial Corp.(c)............................................. 9,660
123,700 Ralston Purina Group(c)................................... 13,769
---------
23,429
---------
Electrical & Electronic (3.1%):
211,200 Emerson Electric Co. ..................................... 12,830
---------
Financial Services (4.9%):
449,818 MBNA Corp.(c)............................................. 14,254
83,158 PMI Group, Inc.(c)........................................ 6,252
---------
20,506
---------
Food Products & Services (3.1%):
12,370 Agribrands International, Inc.(b)(c)...................... 424
595,900 Flowers Industries, Inc.(c)............................... 12,290
---------
12,714
---------
Industrial Goods & Services (3.0%):
131,600 United Technologies Corp.(c).............................. 12,370
---------
Insurance (1.2%):
51,233 Allstate Corp. ........................................... 4,822
---------
Machinery & Equipment (2.3%):
222,000 Snap-On, Inc. ............................................ 9,740
---------
Office Equipment & Services (5.1%):
267,400 Pitney Bowes, Inc. ....................................... 12,568
85,050 Xerox Corp. .............................................. 8,739
---------
21,307
---------
Oil & Gas (9.5%):
111,400 Atlantic Richfield Co. ................................... 8,786
105,700 Mobil Corp................................................ 8,245
272,100 Occidental Petroleum Corp.(c)............................. 7,517
142,500 Royal Dutch Petroleum Co. ................................ 7,989
213,600 Ultramar Diamond Shamrock Corp.(c)........................ 6,822
---------
39,359
---------
Pharmaceuticals (10.2%):
302,000 American Home Products Corp. ............................. 14,590
146,320 Bristol-Myers Squibb Co.(c)............................... 15,731
190,800 Eli Lilly & Co. .......................................... 11,722
---------
42,043
---------
Real Estate (1.2%):
95,400 CCA Prison Realty Trust(c)................................ 2,987
54,600 Mack Cali Realty Corp. ................................... 1,966
---------
4,953
---------
Retail Stores (6.1%):
209,200 J.C. Penney & Co., Inc.(c)................................ 15,023
168,150 Sears Roebuck & Co. ...................................... 10,394
---------
25,417
---------
Telecommunications - Services & Equipment (2.1%):
285,500 Frontier Corp. ........................................... 8,690
---------
Utilities - Electric (5.3%):
143,450 Duke Power Co.(c)......................................... 8,266
141,700 Florida Power & Light, Inc.(c)............................ 8,706
127,000 General Public Utility Corp.(c)........................... 4,890
---------
21,862
---------
Utilities - Gas (1.7%):
124,300 Consolidated Natural Gas Co.(c)........................... 7,031
---------
Utilities - Water (1.6%):
223,400 American Water Works, Inc.(c)............................. 6,562
---------
Total Common Stocks 310,994
---------
PREFERRED STOCKS (8.9%):
Financial Services (6.7%):
85,900 Firstplus Times Trust..................................... 3,511
73,100 Morgan Stanley............................................ 7,493
50,700 SunAmerica, Inc. ......................................... 7,212
301,100 The Money Store, Inc. .................................... 9,183
---------
27,399
---------
Real Estate (0.7%):
120,500 Glenborough Realty........................................ 3,043
---------
Telecommunications - Services & Equipment (1.0%):
57,700 AirTouch Communications................................... 4,017
---------
Utilities - Gas (0.5%):
111,800 Enron Oil & Gas Corp. .................................... 2,257
---------
Total Preferred Stocks 36,716
---------
</TABLE>
Continued
111
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Equity Income Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL SECURITY MARKET
AMOUNT DESCRIPTION VALUE
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
CONVERTIBLE BONDS (13.3%):
Health Care - Services (1.7%):
$ 5,290 Renal Treatment Centers, 5.63%, 7/15/06................... $ 6,917
---------
Hotels & Lodging (2.2%):
4,480 Capstar Hotel Corp., 4.75%, 10/15/04...................... 3,892
6,300 Signature Resorts, Inc., 5.75%, 1/15/07................... 5,253
---------
9,145
---------
Industrial Goods & Services (1.3%):
3,965 Magna International, 5.00%, 10/15/02...................... 5,293
---------
Retail Stores (5.3%):
9,470 Home Depot, Inc., 3.25%, 10/1/01, Callable 10/1/99 @
100.81................................................... 16,336
4,380 The Men's Wearhouse, 5.25%, 3/1/03........................ 5,754
---------
22,090
---------
Technology (2.8%):
4,280 Analog Devices Corp., 3.50%, 12/1/00...................... 5,505
4,350 Solectron Corp., 6.00%, 3/1/06............................ 6,052
---------
11,557
---------
Total Convertible Bonds 55,002
---------
REPURCHASE AGREEMENTS (2.6%):
10,952 Prudential Securities, 5.60%, 6/1/98, (collateralized by
$11,064, FNMA ARM, 6.68%, 11/1/27, market value--
$11,230)................................................. 10,952
---------
Total Repurchase Agreements 10,952
---------
SHORT TERM SECURITIES PURCHASED WITH COLLATERAL (25.1%):
Commercial Paper (10.7%):
$ 13,043 KZH Holding Corp., 5.63%, 6/29/98................. $ 12,976
15,000 PHH Corp., 5.66%, 6/10/98......................... 14,967
16,360 Providian Master Trust, 5.75%, 6/1/98............. 16,352
---------
44,295
---------
Floating Rate Note (8.4%):
10,000 Bankers Trust, 5.64%, 9/11/98..................... 9,996
5,000 Household CCMT, 5.66%, 1/15/99.................... 5,000
10,000 Merrill Lynch, 5.77%, 6/12/98..................... 10,000
10,000 Sigma Finance Inc., 5.69%, 9/9/98................. 9,999
---------
34,995
---------
Repurchase Agreements (6.0%):
24,852 Paine Webber, 5.68%, 6/1/98, (See
Significant Accounting Policies, Lending
Portfolio Securities in the Notes to
Financial Statements for collateral
description)..................................... 24,852
---------
Total Short Term Securities Purchased with Collateral 104,142
---------
Total Investments (Cost $370,490)(a)--24.8% 517,806
Liabilities in excess of other assets (24.8)% (103,047)
---------
Total Net Assets--100.0% $ 414,759
=========
</TABLE>
- -------
(a) Represents cost for federal tax purposes and differs from market value by
net unrealized appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................ $150,634
Unrealized depreciation............................ (3,318)
--------
Net unrealized appreciation........................ $147,316
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or a portion of this security has been loaned at May 31, 1998.
See notes to financial statements.
112
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
1. ORGANIZATION:
The Parkstone Group of Funds (the "Group") was organized on March 27, 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
(collectively, "the money market funds"), 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, and the Equity Income Fund (collectively, "the variable net asset value
funds") (collectively, "the Funds" and individually, a "Fund"). First of
America Bank Corporation ("FABC"), the parent of First of America Investment
Corp. ("FIC"), recently completed its merger with National City Corporation
("NCC"), the parent corporation of National City Bank. As a result of the
merger of FABC into NCC, FIC is a wholly-owned subsidiary of NCC. FIC serves
as investment adviser to the Group. In connection with the merger, the Funds
changed their fiscal year end to May 31, 1998.
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Prime Obligations Fund..... To seek current income with liquidity and
stability of principal.
U.S. Government Obligations
Fund....................... To seek current income with liquidity and
stability of principal.
Tax-Free Fund.............. 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.
Treasury Fund.............. To seek current income with liquidity and
stability of principal.
Small Capitalization Fund.. To seek growth of capital by investing primarily
in a diversified portfolio of common stock and
securities of small- to medium-sized companies.
Mid Capitalization Fund.... To seek growth of capital by investing primarily
in a diversified portfolio of common stocks and
securities convertible into common stocks.
Large Capitalization Fund.. To seek growth of capital by investing in a
diversified portfolio of common stocks and
securities convertible into common stocks of
International Discovery companies with large market capitalization.
Fund....................... To seek long-term growth of capital.
Limited Maturity Bond Fund. To seek current income as well as preservation
of capital by investing in a portfolio of high-
and medium-grade fixed-income securities with
Intermediate Government remaining maturities of six years or less.
Obligations Fund.......... To seek current income with preservation of
capital by investing in U.S. Government
securities with remaining maturities of twelve
U.S. Government Income years or less.
Fund....................... To provide shareholders with a high level of
current income consistent with prudent
investment risk.
Bond Fund.................. To seek current income as well as preservation
of capital by investing in a portfolio of high-
and medium-grade fixed-income securities.
</TABLE>
Continued
113
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
FUND OBJECTIVE
---- ---------
<S> <C>
Municipal Bond Fund........ To seek current interest income which is exempt
from federal income taxes as well as
Michigan Municipal Bond preservation of capital.
Fund....................... 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
Conservative Allocation capital.
Fund....................... To seek current income and conservation of
capital, with a secondary objective of long-term
capital growth.
Balanced Allocation Fund... To seek current income, long-term capital growth
and conservation of capital.
Aggressive Allocation Fund. To seek capital appreciation and income growth.
Equity Income Fund......... To seek current income by investing in a
diversified portfolio of high quality, dividend-
paying common stocks and securities convertible
into common stocks and growth of capital.
</TABLE>
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles (GAAP). 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,
as permitted in accordance with Rule 2a-7 under the 1940 Act, or at
original cost, which combined with accrued interest approximates market
value. Under the amortized cost method, discount or premium is amortized on
a constant basis to the maturity of the security.
Investments in common and preferred stocks, corporate bonds, commercial
paper, municipal and foreign government bonds and U.S. Government
securities of the variable net asset value funds are valued at their market
values determined on the basis of the mean between the latest available bid
and asked prices in the principal market (closing sales prices if the
principal market is an exchange) in which such securities are normally
traded. Investments in foreign securities in the International Discovery
Fund, the Balanced Allocation Fund, and the Aggressive Allocation Fund are
valued based on quotations from the primary market in which they are
traded. Repurchase Agreements held by the variable net assets funds are
shown at original cost, which, combined with accrued interest, approximates
market value. The differences between the cost and market values of
investments held by the variable net asset value funds are reflected as
either unrealized appreciation or depreciation.
SECURITY TRANSACTIONS AND RELATED INCOME:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
Continued
114
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
FOREIGN CURRENCY TRANSLATION:
The market value of investment securities, other assets and liabilities of
the International Discovery Fund, the Balanced Allocation Fund, and the
Aggressive Allocation Fund denominated in a foreign currency are translated
into U.S. dollars at the current exchange rate. Purchases and sales of
securities, income receipts and expense payments are translated into U.S.
dollars at the exchange rate on the dates of the transactions.
The International Discovery Fund, the Balanced Allocation Fund, and the
Aggressive Allocation Fund do not isolate that portion of the results of
operations resulting from changes in foreign exchange rates on investments
from the fluctuations arising from changes in market prices of securities
held. Such fluctuations are included with the net realized and unrealized
gains or losses from investments.
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 purchase instruments from financial institutions, such as
banks and broker-dealers approved by the Board of Trustees, subject to the
seller's agreement to repurchase them at an agreed upon time and price
("repurchase agreements"). The seller under a repurchase agreement is
required to maintain the value of the collateral, in a segregated account,
at not less than the repurchase price. Default by the seller would,
however, expose the relevant Funds to possible loss because of adverse
market action or delay in connection with the disposition of the underlying
obligations. Risks may arise from the potential inability of counterparties
to honor the terms of the repurchase agreements. Accordingly, the Funds
could receive less than the carrying value upon the sale of the underlying
collateral securities.
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 approved by the Board of Trustees, 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 maintain
assets having a value equal to the repurchase price (including accrued
interest), and will subsequently continually monitor the assets to ensure
that such equivalent value is maintained at all times. Reverse repurchase
agreements are considered to be borrowings by a Fund under the 1940 Act.
FORWARD CURRENCY CONTRACTS:
The Funds may enter into a forward currency contract ("forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the forward fluctuates with changes
in currency exchange rates. The forward is marked-to-market daily and the
change in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the forward is closed the Fund records a realized gain
or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed.
Continued
115
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
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.
Forwards may involve market or credit risk in excess of the amounts
reflected on the Fund's statement of assets and liabilities. The gain or
loss from the difference between the cost of original contracts and the
amount realized upon the closing of such contracts is included in net
realized gains/losses from investment and foreign currency transactions.
Fluctuations in the value of forwards held at are recorded for financial
reporting purposes as unrealized gains and losses by the Funds. The
following forwards were open at May 31, 1998.
<TABLE>
<CAPTION>
CONTRACT
AMOUNT CONTRACT VALUE APPRECIATION DELIVERY
FORWARD CURRENCY CONTRACTS (LOCAL CURRENCY) U.S. DOLLAR (DEPRECIATION) DATE
-------------------------- ---------------- -------------- -------------- --------
<S> <C> <C> <C> <C>
INTERNATIONAL DISCOVERY
FUND
Short Contracts
Belgian Franc......... 702,000 $19,024 $ (80) 6/2/98
Italian Lire.......... 77,137,500 43,778 (130) 6/1/98
-----
Net payable for for-
ward currency con-
tracts.............. $(210)
=====
BALANCED FUND
Short Contracts
Belgian Franc......... 37,800 $ 1,024 $ (4) 6/2/98
Italian Lire.......... 4,632,500 2,629 (8) 6/1/98
-----
Net payable for for-
ward currency con-
tracts.............. $ (12)
=====
AGGRESSIVE ALLOCATION
FUND
Short Contracts
Belgian Franc......... 8,100 $ 220 $ (1) 6/2/98
Italian Lire.......... 1,249,500 709 (2) 6/1/98
-----
Net payable for for-
ward currency con-
tracts.............. $ (3)
=====
</TABLE>
LENDING PORTFOLIO SECURITIES:
To generate additional income, the Funds, except the Treasury Fund, may
lend up to 33% of securities in which they are invested pursuant to
agreements requiring that the loan be continuously secured by cash, U.S.
Government or U.S. Government Agency securities, shares of an investment
trust or mutual fund, or any combination of cash and such securities as
collateral equal at all times to at least 100% of the market value plus
accrued interest on the securities lent. The Funds continue to earn
interest and dividends on securities lent while simultaneously seeking to
earn interest on the investment of collateral.
When cash is received as collateral for securities loaned, the Funds may
invest such cash in short-term U.S. Government Securities, Repurchase
Agreements, or other short-term corporate securities. The cash or
subsequent short-term investments are recorded as assets of the Funds,
offset by a corresponding liability to repay the cash at the termination of
the loan. In addition, the short-term securities purchased with the cash
collateral are included in the accompanying schedules of portfolio
investments. Fixed income securities received as collateral are not
recorded as an asset or liability of the Fund because the Fund does not
have effective control of such securities.
There may be risks of delay in recovery of the securities or even loss of
rights in the collateral should the borrower of the securities fail
financially. However, loans will be made only to borrowers deemed by the
Advisor to be of
Continued
116
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
good standing and creditworthy under guidelines established by the Board of
Trustees and when, in the judgment of the Advisor, the consideration which
can be earned currently from such securities loans justifies the attendant
risks. Loans are subject to termination by the Funds or the borrower at any
time, and are, therefore, not considered to be illiquid investments.
According to GAAP, a statement of cash flows is presented if the Fund lent
out, on average, more than 10% of net assets during the year. Under this
guideline, a statement of cash flows is presented for each of the Funds
listed below. As of May 31, 1998, the following Funds had securities with
the following market values on loan (amounts in thousands):
<TABLE>
<CAPTION>
MARKET MARKET VALUE
VALUE OF OF LOANED
COLLATERAL SECURITIES
---------- ------------
<S> <C> <C>
Mid Capitalization Fund.............................. $205,530 $198,701
Large Capitalization Fund............................ 112,934 109,503
Limited Maturity Bond Fund........................... 46,982 45,646
Intermediate Government Obligations Fund............. 35,420 34,116
U.S. Government Income Fund.......................... 41,215 39,839
Bond Fund............................................ 131,468 128,456
Conservative Allocation Fund......................... 2,429 2,365
Balanced Allocation Fund............................. 50,895 49,211
Aggressive Allocation Fund........................... 6,923 6,699
Equity Income Fund................................... 104,142 101,081
</TABLE>
The loaned securities were fully collateralized by cash, U.S. Government
securities, short-term corporate notes and repurchase agreements as of May
31, 1998.
As disclosed in the schedules of portfolio investments the Mid
Capitalization, Large Capitalization, Limited Maturity Bond, U.S.
Government Income, Bond, Conservative Allocation, Balanced Allocation,
Aggressive Allocation and Equity Income Funds collectively, through Union
Bank of California, as the leading agent, invested cash collateral in a
PaineWebber Repurchase Agreement with an interest rate of 5.68% and a
maturity of 6/1/98 which was collateralized by the following securities
(amounts in thousands):
<TABLE>
<CAPTION>
PRINCIPAL DESCRIPTION MARKET VALUE
--------- ----------- ------------
<C> <S> <C> <C> <C>
$ 3,461 Collateralized Mortgage Obligation 0.00% 9/23/17 $ 2,955
Trust
$22,707 Bear Stearns Secured Investors Trust 0.00% 3/1/19 $17,335
$ 1,691 Residential Asset Securitization Trust 6.50% 7/25/13 $ 1,701
$12,343 Independent National Mortgage 7.00% 5/25/26 $12,406
Corporation
$ 685 Independent National Mortgage 6.93% 5/25/26 $ 691
Corporation
$ 4,277 Countrywide Mortgage Backed Securities 7.82% 3/25/24 $ 4,440
$ 2,266 Countrywide Funding Corp. 6.50% 3/25/24 $ 2,222
$10,420 Residential Asset Securitization Trust 7.50% 9/25/26 $10,648
$14,053 Residential Asset Securitization Trust 7.63% 9/25/26 $14,298
$ 8,248 Residential Asset Securitization Trust 8.00% 12/25/26 $ 8,559
$14,059 Chase Mortgage Finance Corporation 6.45% 5/25/28 $14,059
$10,350 Chase Mortgage Finance Corporation 6.75% 5/25/28 $ 9,573
$ 452 Chase Mortgage Finance Corporation 6.75% 5/25/28 $ 406
$ 3,423 Chase Mortgage Finance Corporation 7.00% 4/25/25 $ 3,468
$13,000 Chase Mortgage Finance Corporation 8.00% 12/25/23 $13,369
$11,103 Citicorp Mortgage Securities Inc. 9.00% 8/25/27 $11,502
</TABLE>
Continued
117
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
PRINCIPLE DESCRIPTION MARKET VALUE
--------- ----------- ------------
<C> <S> <C> <C> <C>
$10,709 Citicorp Mortgage Securities Inc. 7.15% 11/25/22 $10,954
$1,177 Collateralized Mortgage Obligation 0.00% 5/1/17 $ 892
Trust
$640 Collateralized Mortgage Obligation 0.00% 4/23/17 $ 558
Trust
$852 Collateralized Mortgage Obligation 0.00% 4/23/17 $ 742
Trust
$4,145 Collateralized Mortgage Obligation 0.00% 5/23/17 $ 3,657
Trust
$6,000 Collateralized Mortgage Securities 6.39% 10/20/20 $ 6,012
Corp.
$7,306 Contimortgage Home Equity Loan Trust 7.16% 7/15/11 $ 7,373
$27,915 WMC Mortgage Loan Pass-Through 5.90% 3/20/29 $27,916
Certificate
</TABLE>
MORTGAGE ROLLS:
The Funds may enter into mortgage "dollar rolls" in which the Fund sells
mortgage-backed securities for delivery in the current month and
simultaneously contracts to repurchase substantially similar securities on
a specified future date. During the roll period, the Fund forgoes principal
and interest paid on the mortgage-backed securities. The Fund is
compensated by fee income or the difference between the current sales price
and the lower forward price for the future purchase.
DIVIDENDS TO SHAREHOLDERS:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized capital gains, if any, are declared and
distributed at least annually.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from GAAP. These "book/tax" differences are primarily due to differing
treatments for mortgage-backed securities and deferrals of certain losses.
These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassifications. Dividends and distributions to shareholders which exceed
net investment income and net realized gains for financial reporting
purposes but not for tax purposes are reported as dividends in excess of
net investment income or distributions in excess of net realized gains. To
the extent they exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of capital.
Continued
118
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
As of May 31, 1998, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to paid-
in-capital (amounts in thousands):
<TABLE>
<CAPTION>
ACCUMULATED ACCUMULATED NET
UNDISTRIBUTED NET REALIZED
INVESTMENT GAIN/(LOSS)
INCOME ON INVESTMENTS
----------------- ---------------
<S> <C> <C>
Small Capitalization Fund.................. $8,901 $ --
Mid Capitalization Fund.................... 5,117 --
Large Capitalization Fund.................. 751 --
International Discovery Fund............... 1,359 945
Limited Maturity Bond Fund................. 81 (61)
Intermediate Government Obligations Fund... (191) 383
U.S. Government Income Fund................ (1,007) 2,103
Bond Fund.................................. 53 (53)
Municipal Bond Fund........................ 73 (73)
Michigan Municipal Bond Fund............... 42 (42)
Conservative Allocation Fund............... 4 (4)
Balanced Allocation Fund................... 69 (68)
Aggressive Allocation Fund................. 9 (9)
</TABLE>
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.
EXPENSES:
Expenses directly attributable to a Fund are charged to the Fund, while
expenses which are attributable to more than one Fund of the Group are
allocated among the respective Funds based upon relative net assets or
another appropriate basis. In addition, expenses that are directly
attributable to a specific class are charged only to that class.
The investment income and expenses of a Fund (other than class specific
expenses) and realized and unrealized gains and losses on investments of a
Fund are allocated to each class of shares based upon their relative net
asset value on the date income is earned or expenses are recognized and
realized and unrealized gains and losses are incurred.
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
119
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
3. PURCHASES AND SALES OF SECURITIES:
Purchases and sales of securities (excluding short-term securities) for the
eleven months ended May 31, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
PURCHASES SALES
---------- ----------
<S> <C> <C>
Small Capitalization Fund.............................. $ 379,708 $ 469,023
Mid Capitalization Fund................................ 244,322 344,484
Large Capitalization Fund.............................. 87,433 138,262
International Discovery Fund........................... 150,686 188,446
Limited Maturity Bond Fund............................. 398,198 352,086
Intermediate Government Obligations Fund............... 1,469,525 1,495,974
U.S. Government Income Fund............................ 665,210 656,494
Bond Fund.............................................. 2,733,181 2,751,253
Municipal Bond Fund.................................... 118,579 127,212
Michigan Municipal Bond Fund........................... 64,449 73,687
Conservative Allocation Fund........................... 19,868 14,117
Balanced Allocation Fund............................... 326,923 311,021
Aggressive Allocation Fund............................. 28,499 32,630
Equity Income Fund..................................... 77,861 168,401
</TABLE>
4. CAPITAL SHARE TRANSACTIONS:
The Group has issued four classes of Fund shares in each of the Small
Capitalization Fund, the Mid Capitalization Fund, the Large Capitalization
Fund, the International Discovery Fund, the Limited Maturity Bond Fund, the
Intermediate Government Obligations Fund, the U.S. Government Income Fund,
the Bond Fund, the Balanced Allocation Fund, and the Equity Income Fund:
Investor A Shares, Investor B Shares, Investor C Shares and Institutional
Shares. The Group has issued three classes of Fund shares in each of the
Prime Obligations Fund, the Municipal Bond Fund and the Michigan Municipal
Bond 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: Investor A Shares and Institutional
Shares. The Group has issued one class of Fund shares in each of the
Conservative Allocation Fund and the Aggressive Allocation Fund:
Institutional Shares.
The Investor A Shares of the variable net asset value funds are subject to
initial sales charges imposed at the time of purchase, in accordance with the
Funds' prospectuses. Certain redemptions of Investor B Shares made within
five (four years if purchased before January 1, 1997) years of purchase and
of Investor C Shares made within one year of purchase are subject to
contingent deferred sales charges in accordance with the Funds' prospectuses.
Each class of shares for each Fund has identical rights and privileges except
with respect to distribution (12b-1) fees and shareholder service fees paid
by the Investor A Shares, Investor B Shares and Investor C Shares, and
Investor B Shares and Investor C Shares, respectively, voting rights on
matters affecting a single class of shares and the exchange privileges of
each class of shares.
Continued
120
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
PRIME U.S. GOVERNMENT
OBLIGATIONS FUND(A) OBLIGATIONS FUND TAX-FREEFUND TREASURY FUND
----------------------- ------------------- ------------------- -----------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
----------- ---------- --------- -------- --------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the eleven months
ended May 31, 1998:
Investor A Shares:
Shares issued.......... $ 1,090,813 1,090,780 $ 561,666 561,666 $ 293,914 293,912 $ 915,653 915,653
Dividends reinvested... 8,884 8,891 1,315 1,315 914 914 554 554
Shares redeemed........ (1,076,810) (1,076,776) (605,875) (605,875) (287,187) (287,188) (851,996) (851,997)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase (de-
crease)............... $ 22,887 22,895 $ (42,894) (42,894) $ 7,641 7,638 $ 64,211 64,210
=========== ========== ========= ======== ========= ======== =========== ==========
Investor B Shares:
Shares issued.......... $ 730 729 $ -- -- $ -- -- $ -- --
Dividends reinvested... 4 4 -- -- -- -- -- --
Shares redeemed........ (347) (347) -- -- -- -- -- --
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 387 386 $ -- -- $ -- -- $ -- --
=========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 921,653 921,653 $ 316,849 316,849 $ 148,667 148,667 $ 766,757 766,757
Dividends reinvested... 4 4 -- -- -- -- -- --
Shares redeemed........ (908,035) (908,035) (341,648) (341,648) (153,489) (153,489) (769,538) (769,538)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase (de-
crease)............... $ 13,622 13,622 $ (24,799) (24,799) $ (4,822) (4,822) $ (2,781) (2,781)
=========== ========== ========= ======== ========= ======== =========== ==========
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 621,672 621,672 $ 730,447 730,448 $ 280,908 280,908 $ 1,034,231 1,034,232
Dividends reinvested... 8,181 8,181 1,537 1,536 824 824 627 627
Shares redeemed........ (582,286) (582,286) (706,845) (706,845) (275,968) (275,968) (1,017,589) (1,017,589)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 47,567 47,567 $ 25,139 25,139 $ 5,764 5,764 $ 17,269 17,270
=========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 1,062,801 1,062,797 $ 398,008 398,008 $ 126,130 126,130 $ 689,368 689,368
Dividends reinvested... 12 12 -- -- -- -- -- --
Shares redeemed........ (981,569) (981,569) (395,295) (395,295) (123,383) (123,383) (588,439) (588,439)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 81,244 81,240 $ 2,713 2,713 $ 2,747 2,747 $ 100,929 100,929
=========== ========== ========= ======== ========= ======== =========== ==========
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 478,221 478,221 $ 637,510 637,510 $ 241,570 241,570 $ 1,354,172 1,354,172
Dividends reinvested... 6,867 6,867 1,435 1,435 820 820 492 492
Shares redeemed........ (446,172) (446,172) (621,181) (621,181) (245,782) (245,782) (1,301,320) (1,301,320)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ 38,916 38,916 $ 17,764 17,764 $ (3,392) (3,392) $ 53,344 53,344
=========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 993,374 993,374 $ 454,210 454,210 $ 134,776 134,776 $ 648,403 648,403
Dividends reinvested... 28 28 64 64 -- -- 1 1
Shares redeemed........ (1,037,700) (1,037,700) (474,388) (474,388) (127,125) (127,125) (617,201) (617,201)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase
(decrease)............ $ (44,298) (44,298) $ (20,114) (20,114) $ 7,651 7,651 $ 31,203 31,203
=========== ========== ========= ======== ========= ======== =========== ==========
</TABLE>
- -------
(a) Fund commenced offering of Investor B shares on September 26, 1997.
121
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
(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 eleven months
ended May 31, 1998:
Investor A Shares:
Shares issued.......... $ 742,080 27,212 $ 255,877 16,378 $ 10,407 682 $ 6,427 410
Dividends reinvested... 8,345 326 15,034 1,093 1,848 134 1,402 96
Shares redeemed........ (771,128) (28,041) (261,402) (16,582) (5,105) (329) (13,589) (872)
--------- -------- --------- ------- --------- ------- --------- ------
Net increase (de-
crease)............... $ (20,703) (503) $ 9,509 889 $ 7,150 487 $ (5,760) (366)
========= ======== ========= ======= ========= ======= ========= ======
Investor B Shares:
Shares issued.......... $ 8,110 299 $ 2,794 185 $ 5,300 349 $ 1,492 97
Dividends reinvested... 2,254 90 4,415 338 685 50 434 31
Shares redeemed........ (12,631) (472) (4,478) (302) (748) (49) (2,654) (178)
--------- -------- --------- ------- --------- ------- --------- ------
Net increase (de-
crease)............... $ (2,267) (83) $ 2,731 221 $ 5,237 350 $ (728) (50)
========= ======== ========= ======= ========= ======= ========= ======
Investor C Shares:
Shares issued.......... $ 3,920 145 $ 877 58 $ 282 19 $ 449 29
Dividends reinvested... 742 30 407 31 9 1 32 2
Shares redeemed........ (3,708) (140) (987) (66) (73) (6) (340) (22)
--------- -------- --------- ------- --------- ------- --------- ------
Net increase........... $ 954 35 $ 297 23 $ 218 14 $ 141 9
========= ======== ========= ======= ========= ======= ========= ======
Institutional Shares:
Shares issued.......... $ 147,252 5,320 $ 85,360 5,577 $ 71,064 4,704 $ 60,496 3,912
Dividends reinvested... 20,267 780 67,177 4,836 23,970 1,731 7,665 519
Shares redeemed........ (208,250) (7,510) (168,207) (10,548) (119,622) (7,791) (75,091) (4,781)
--------- -------- --------- ------- --------- ------- --------- ------
Net (decrease)......... $ (40,731) (1,410) $ (15,670) (135) $ (24,588) (1,356) $ (6,930) (350)
========= ======== ========= ======= ========= ======= ========= ======
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 (de-
crease)............... $ 167,819 6,266 $ 28,010 3,171 $ (22,642) (1,005) $ 3,088 168
========= ======== ========= ======= ========= ======= ========= ======
</TABLE>
122
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
SMALL MID LARGE
CAPITALIZATION CAPITALIZATION CAPITALIZATION INTERNATIONAL
FUND FUND FUND DISCOVERY FUND
------------------ ------------------ ---------------- ------------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
--------- ------- --------- ------- -------- ------ --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 716,574 24,410 $ 43,954 2,330 $ 1,890 176 $ 176,176 13,523
Dividends reinvested... 11,443 425 1,731 95 1 -- 29 2
Shares redeemed........ (654,377) (22,140) (35,147) (1,871) (314) (29) (176,114) (13,499)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase........... $ 73,640 2,695 $ 10,538 554 $ 1,577 147 $ 91 26
========= ======= ========= ======= ======== ====== ========= =======
Investor B Shares:
Shares issued.......... $ 14,435 493 8,140 434 $ 807 75 $ 3,847 300
Dividends reinvested... 1,919 72 329 18 -- -- -- --
Shares redeemed........ (1,598) (55) (799) (42) (12) (1) (777) (61)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase........... $ 14,756 510 $ 7,670 410 $ 795 74 $ 3,070 239
========= ======= ========= ======= ======== ====== ========= =======
Investor C Shares:
Shares issued.......... $ 4,777 164 940 49 $ 2 -- $ 399 30
Dividends reinvested... 67 3 14 1 -- -- 1 --
Shares redeemed........ (181) (6) (118) (6) -- -- (45) (3)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase........... $ 4,663 161 $ 836 44 $ 2 -- $ 355 27
========= ======= ========= ======= ======== ====== ========= =======
Institutional Shares:
Shares issued.......... $ 178,465 6,099 $ 142,068 7,574 $268,046 24,775 $ 111,341 8,370
Dividends reinvested... 33,689 1,238 18,788 1,026 228 21 414 33
Shares redeemed........ (175,262) (5,614) (365,658) (18,489) (4,553) (418) (53,166) (4,080)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase
(decrease)............ $ 36,892 1,723 $(204,802) (9,889) $263,721 24,378 $ 58,589 4,323
========= ======= ========= ======= ======== ====== ========= =======
</TABLE>
123
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
LIMITED INTERMEDIATE
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 eleven months
ended May 31, 1998:
Investor A Shares:
Shares issued.......... $24,130 2,540 $ 520 54 $ 13,553 1,471 $ 1,553 158
Dividends reinvested... 1,606 169 581 59 2,471 269 830 84
Shares redeemed........ (11,582) (1,219) (5,456) (555) (20,652) (2,238) (6,086) (615)
------- ------ --------- ------- -------- ------- -------- -------
Net increase (de-
crease)............... $14,154 1,490 $ (4,355) (442) $ (4,628) (498) $ (3,703) (373)
======= ====== ========= ======= ======== ======= ======== =======
Investor B Shares:
Shares issued.......... $ 520 55 $ 169 17 $ 4,184 456 $ 1,078 109
Dividends reinvested... 48 5 78 8 772 84 259 26
Shares redeemed........ (509) (54) (396) (41) (4,962) (539) (1,076) (108)
------- ------ --------- ------- -------- ------- -------- -------
Net increase (de-
crease)............... $ 59 6 $ (149) (16) $ (6) 1 $ 261 27
======= ====== ========= ======= ======== ======= ======== =======
Investor C Shares:
Shares issued.......... $ 3,813 410 $ 71 8 $ 379 41 $ 387 39
Dividends reinvested... 52 6 10 1 8 1 26 3
Shares redeemed........ (1,705) (184) (42) (5) (94) (10) (342) (35)
------- ------ --------- ------- -------- ------- -------- -------
Net increase........... $ 2,160 232 $ 39 4 $ 293 32 $ 71 7
======= ====== ========= ======= ======== ======= ======== =======
Institutional Shares:
Shares issued.......... $66,363 6,981 $ 31,582 3,209 $ 45,541 4,942 $ 81,867 8,245
Dividends reinvested... 2,591 273 2,482 253 897 97 18,662 1,884
Shares redeemed........ (54,768) (5,764) (53,203) (5,405) (35,690) (3,871) (126,566) (12,716)
------- ------ --------- ------- -------- ------- -------- -------
Net increase (de-
crease)............... $14,186 1,490 $ (19,139) (1,943) $ 10,748 1,168 $(26,037) (2,587)
======= ====== ========= ======= ======== ======= ======== =======
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 (de-
crease)............... $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 (de-
crease)............... $ (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 (de-
crease)............... $ (644) (65) $ (37,911) (3,902) $ 19,699 2,142 $(66,496) (6,877)
======= ====== ========= ======= ======== ======= ======== =======
</TABLE>
124
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
INTERMEDIATE
LIMITED MATURITY GOVERNMENT U.S. GOVERNMENT
BOND FUND OBLIGATIONS FUND INCOME FUND BOND FUND
------------------ ------------------- ----------------- ----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
-------- -------- --------- -------- -------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $ 1,949 203 $ 3,161 321 $ 11,399 1,215 $ 11,308 1,165
Dividends reinvested... 748 78 998 101 2,138 229 848 88
Shares redeemed........ (6,858) (713) (8,204) (830) (11,274) (1,202) (9,229) (948)
-------- ------- --------- ------- -------- ------- -------- ------
Net increase
(decrease)............ $ (4,161) (432) $ (4,045) (408) $ 2,263 242 $ 2,927 305
======== ======= ========= ======= ======== ======= ======== ======
Investor B Shares:
Shares issued.......... $ 822 86 $ 1,134 115 $ 12,980 1,387 $ 3,376 347
Dividends reinvested... 51 5 62 6 569 61 115 12
Shares redeemed........ (192) (20) (287) (29) (2,129) (229) (298) (31)
-------- ------- --------- ------- -------- ------- -------- ------
Net increase........... $ 681 71 $ 909 92 $ 11,420 1,219 $ 3,193 328
======== ======= ========= ======= ======== ======= ======== ======
Investor C Shares:
Shares issued.......... $ 11 1 $ 75 7 $ 54 7 $ 322 33
Dividends reinvested... -- -- 2 -- 2 -- 6 1
Shares redeemed........ (1) -- (4) -- (15) (2) (142) (15)
-------- ------- --------- ------- -------- ------- -------- ------
Net increase........... $ 10 1 $ 73 7 $ 41 5 $ 186 19
======== ======= ========= ======= ======== ======= ======== ======
Institutional Shares:
Shares issued.......... $ 31,013 3,225 $ 46,223 4,679 $ 41,249 4,396 $121,608 12,536
Dividends reinvested... 4,061 422 3,811 386 1,213 130 22,854 2,357
Shares redeemed........ (36,944) (3,831) (68,765) (6,955) (19,745) (2,105) (95,486) (9,818)
-------- ------- --------- ------- -------- ------- -------- ------
Net increase
(decrease)............ $ (1,870) (184) $ (18,731) (1,890) $ 22,717 2,421 $ 48,976 5,075
======== ======= ========= ======= ======== ======= ======== ======
</TABLE>
125
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<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 eleven months
ended May 31, 1998:
Investor A Shares:
Shares issued.......... $ 1,862 175 $ 7,990 725 $ -- -- $ 2,097 156
Dividends reinvested... 406 39 1,275 116 -- -- 923 70
Shares redeemed........ (2,351) (223) (9,650) (872) -- -- (3,637) (270)
-------- ------ -------- ------ ---------- -------- -------- ------
Net (decrease)......... $ (83) (9) $ (385) (31) $ -- -- $ (617) (44)
======== ====== ======== ====== ========== ======== ======== ======
Investor B Shares:
Shares issued.......... $ 80 8 $ 996 90 $ -- -- $ 1,900 142
Dividends reinvested... 29 3 105 9 -- -- 305 23
Shares redeemed........ (336) (32) (676) (61) -- -- (959) (71)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase (de-
crease)............... $ (227) (21) $ 425 38 $ -- -- $ 1,246 94
======== ====== ======== ====== ========== ======== ======== ======
Investor C Shares:
Shares issued.......... $ -- -- $ -- -- $ -- -- $ 458 34
Dividends reinvested... -- -- -- -- -- -- 41 3
Shares redeemed........ -- -- -- -- -- -- (417) (31)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase........... $ -- -- $ -- -- $ -- -- $ 82 6
======== ====== ======== ====== ========== ======== ======== ======
Institutional Shares:
Shares issued.......... $ 15,154 1,434 $ 40,600 3,678 $ 9,933 931 $ 67,862 5,034
Dividends reinvested... 514 49 1,308 119 610 57 12,123 922
Shares redeemed........ (26,380) (2,491) (33,573) (3,042) (4,795) (445) (78,144) (5,827)
-------- ------ -------- ------ ---------- -------- -------- ------
Net increase (de-
crease)............... $(10,712) (1,008) $ 8,335 755 $ 5,748 543 $ 1,841 129
======== ====== ======== ====== ========== ======== ======== ======
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 (de-
crease)............... $ 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) For the year ended June 30, 1997, the information presented is for the
period from December 30, 1996 (commencement of operations) through June 30,
1997.
126
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
MICHIGAN
MUNICIPAL MUNICIPAL BALANCED
BOND FUND BOND FUND ALLOCATION FUND
--------------- --------------- -----------------
AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES
------- ------ ------- ------ -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1996:
Investor A Shares:
Shares issued.......... $15,920 1,523 $ 4,251 389 $ 4,769 374
Dividends reinvested... 285 27 1,256 116 967 76
Shares redeemed........ (19,806) (1,894) (6,772) (619) (2,876) (225)
------- ------ ------- ------ -------- -------
Net increase
(decrease)............ $(3,601) (344) $(1,215) (114) $ 2,860 225
======= ====== ======= ====== ======== =======
Investor B Shares:
Shares issued.......... $ 490 47 $ 1,672 154 $ 2,848 222
Dividends reinvested... 15 1 90 8 154 12
Shares redeemed........ (211) (20) (454) (42) (261) (20)
------- ------ ------- ------ -------- -------
Net increase........... $ 294 28 $ 1,308 120 $ 2,741 214
======= ====== ======= ====== ======== =======
Investor C Shares:
Shares issued.......... $ -- -- $ -- -- $ 372 29
Dividends reinvested... -- -- -- -- 12 1
Shares redeemed........ -- -- -- -- (162) (12)
------- ------ ------- ------ -------- -------
Net increase........... $ -- -- $ -- -- $ 222 18
======= ====== ======= ====== ======== =======
Institutional Shares:
Shares issued.......... $21,245 2,020 $35,762 3,288 $ 34,675 2,705
Dividends reinvested... 354 34 1,228 113 5,513 435
Shares redeemed........ (24,461) (2,322) (28,002) (2,571) (25,365) (1,977)
------- ------ ------- ------ -------- -------
Net increase (de-
crease)............... $(2,862) (268) $ 8,988 830 $ 14,823 1,163
======= ====== ======= ====== ======== =======
</TABLE>
127
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
AGGRESSIVE EQUITY
ALLOCATION FUND (A) INCOME FUND
--------------------- -----------------
AMOUNT SHARES AMOUNT SHARES
---------- --------- --------- ------
<S> <C> <C> <C> <C>
For the eleven months ended May 31,
1998:
Investor A Shares:
Shares issued........................ $ -- -- $ 10,194 534
Dividends reinvested................. -- -- 16,166 928
Shares redeemed...................... -- -- (20,575) (1,074)
---------- -------- --------- ------
Net increase......................... $ -- -- $ 5,785 388
========== ======== ========= ======
Investor B Shares:
Shares issued........................ $ -- -- $ 6,379 334
Dividends reinvested................. -- -- 3,856 223
Shares redeemed...................... -- -- (3,200) (170)
---------- -------- --------- ------
Net increase......................... $ -- -- $ 7,035 387
========== ======== ========= ======
Investor C Shares:
Shares issued........................ $ -- -- $ 628 34
Dividends reinvested................. -- -- 120 7
Shares redeemed...................... -- -- (438) (23)
---------- -------- --------- ------
Net increase......................... $ -- -- $ 310 18
========== ======== ========= ======
Institutional Shares:
Shares issued........................ $ 9,513 858 $ 24,482 1,317
Dividends reinvested................. 446 40 11,116 640
Shares redeemed...................... (19,093) (1,712) (65,461) (3,413)
---------- -------- --------- ------
Net increase (decrease).............. $ (9,134) (814) $ (29,863) (1,456)
========== ======== ========= ======
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) For the year ended June 30, 1997, the information presented is for the
period from December 30, 1996 (commencement of operations) through June 30,
1997.
128
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Continued
<TABLE>
<CAPTION>
(Amounts in Thousands)
EQUITY
INCOME FUND
----------------
AMOUNT SHARES
-------- ------
<S> <C> <C>
For the year
ended June
30, 1996:
Investor A
Shares:
Shares
issued..... $ 10,168 632
Dividends
reinvested. 3,421 213
Shares
redeemed... (15,766) (989)
-------- ------
Net
(decrease). $ (2,177) (144)
======== ======
Investor B
Shares:
Shares
issued..... $ 4,807 295
Dividends
reinvested. 342 21
Shares
redeemed... (1,279) (80)
-------- ------
Net
increase... $ 3,870 236
======== ======
Investor C
Shares:
Shares
issued..... $ 125 7
Dividends
reinvested. 3 --
Shares
redeemed... (4) --
-------- ------
Net
increase... $ 124 7
======== ======
Institutional
Shares:
Shares
issued..... $ 35,336 2,196
Dividends
reinvested. 3,586 224
Shares
redeemed... (108,373) (6,811)
-------- ------
Net
(decrease). $(69,451) (4,391)
======== ======
</TABLE>
129
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
5. RELATED PARTY TRANSACTIONS:
Investment advisory services are provided to the Group by FIC. Gulfstream
Global Investors, Ltd. ("Gulfstream") serves as sub-investment adviser to the
Conservative Allocation Fund, the Balanced Allocation Fund, the Aggressive
Allocation Fund and the International Discovery Fund. Under the terms of the
investment advisory agreement, FIC is entitled to receive fees based on a
percentage of the average daily net assets of the Funds. Under the terms of
the sub-investment advisory agreement, Gulfstream is entitled to receive fees
from FIC based on a percentage of the average daily net assets of the
International Discovery Fund, and based on a percentage of the average daily
net assets of the Conservative Allocation Fund, the Balanced Allocation Fund,
and the Aggressive Allocation Fund 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 wholly-owned subsidiaries of The BISYS Group, Inc.
BISYS, with whom certain officers of the Group are affiliated, serves the
Group as Administrator. Such officers are paid no fees directly by the Funds
for serving as officers and trustees of the Group. Under the terms of the
administration agreement, BISYS's fees are computed at 0.20% of the average
daily net assets of each Fund. BISYS also serves the Group as distributor and
is entitled to receive commissions on sales of shares of the variable net
asset value funds. For the year ended May 31, 1998, BISYS received $1,259,062
in commissions from sales of shares of the variable net asset value funds of
which $1,248,198 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 assets of Investor A shares of that Fund.
Pursuant to the Investor B and Investor C Plans, each Fund is authorized to
pay or reimburse BISYS, as distributor of Investor B and Investor C shares,
(a) a distribution fee in an amount not to exceed on an annual basis 0.75% of
the average daily net assets of Investor B or Investor C shares of that Fund
and (b) a service fee in an amount not to exceed on an annual basis 0.25% of
the average daily net assets of 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
130
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows (amounts in thousands):
<TABLE>
<CAPTION>
U.S.
PRIME GOVERNMENT TAX
OBLIGATIONS OBLIGATIONS FREE TREASURY
FUND FUND FUND FUND
----------- ----------- ----- --------
<S> <C> <C> <C> <C>
ELEVEN MONTHS ENDED MAY 31, 1998
--------------------------------
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.40% 0.40% 0.40% 0.40%
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 161 $ 70 $ 32 $ 476
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions............. $ 275 $ 265 $ 77 $ 273
12B-1 FEES INVESTOR B(A):
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.75% -- -- --
SHAREHOLDER SERVICE FEES INVESTOR
B(A):
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.25% -- -- --
TRANSFER AGENT AND MUTUAL FUND
ACCOUNTANT FEES..................... $ 297 $ 147 $ 84 $ 158
YEAR ENDED JUNE 30, 1997
------------------------
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.40% 0.40% 0.40% 0.40%
ADMINISTRATION FEES:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 169 $ 84 $ 32 $ 404
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee re-
ductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
Voluntary fee reductions............. $ 263 $ 297 $ 77 $ 193
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES....................... $ 210 $ 118 $ 73 $ 115
</TABLE>
- -------
(a) Commencement of operations for the Prime Obligations Fund Investor B shares
was September 26, 1997.
Continued
131
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
SMALL MID LARGE INTERNATIONAL
CAPITALIZATION CAPITALIZATION CAPITALIZATION DISCOVERY
FUND FUND FUND FUND
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
ELEVEN MONTHS ENDED MAY
31, 1998
-----------------------
INVESTMENT ADVISORY
FEES:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 1.00% 1.00% 0.80% 1.25%(a)
ADMINISTRATION FEES:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.20% 0.20% 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
SHAREHOLDER SERVICE FEES
INVESTOR B:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
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................... $ 802 $ 446 $ 203 $ 434
YEAR ENDED JUNE 30, 1997
------------------------
INVESTMENT ADVISORY
FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 1.00% 1.00% 0.80% 1.25%(a)
ADMINISTRATION FEES:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.20% 0.20% 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.75% 0.75% 0.75% 0.75%
SHAREHOLDER SERVICE FEES
INVESTOR B:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.25% 0.25% 0.25% 0.25%
SHAREHOLDER SERVICE FEES
INVESTOR C:
Annual fee before volun-
tary fee reductions
(percentage of average
daily net assets)...... 0.25% 0.25% 0.25% 0.25%
TRANSFER AGENT AND MU-
TUAL FUND ACCOUNTANT
FEES................... $ 561 $ 426 $ 166 $ 427
</TABLE>
- -------
(a) Investment advisory fees for the International Discovery Fund are
calculated as 1.25% of the first $50 million, 1.20% of the next $50
million, 1.15% of the next $300 million and 1.05% over $400 million.
Continued
132
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
LIMITED INTERMEDIATE U.S.
MATURITY GOVERNMENT GOVERNMENT
BOND OBLIGATIONS INCOME BOND
FUND FUND FUND FUND
-------- ------------ ---------- -----
<S> <C> <C> <C> <C>
ELEVEN MONTHS ENDED MAY 31, 1998
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.............. $ 325 $ 72 $ 646 $ 192
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 85 $ 90 $ 112 $ 240
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 AC-
COUNTANT FEES....................... $ 130 $ 155 $ 245 $ 260
YEAR ENDED JUNE 30, 1997
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.74% 0.74% 0.74% 0.74%
Voluntary fee reductions............. $ 290 $ 87 $ 620 $ 207
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 76 $ 114 $ 107 $ 271
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.75% 0.75% 0.75% 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.75% 0.75% 0.75% 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
SHAREHOLDER SERVICE FEES INVESTOR C:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
TRANSFER AGENT AND MUTUAL FUND AC-
COUNTANT FEES....................... $ 151 $ 169 $ 244 $ 279
</TABLE>
Continued
133
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
MICHIGAN
MUNICIPAL MUNICIPAL CONSERVATIVE BALANCED
BOND BOND ALLOCATION ALLOCATION
FUND FUND FUND(A) FUND
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
ELEVEN MONTHS ENDED MAY 31, 1998
--------------------------------
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.74% 0.74% 1.00% 1.00%
Voluntary fee reduction.......... $245 $438 $43 $650
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions......... $129 $230 -- --
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.75% 0.75% -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR
B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR
C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.25%
TRANSFER AGENT AND MUTUAL FUND
ACCOUNTANT FEES................. $104 $156 $15 $238
<CAPTION>
YEAR ENDED JUNE 30, 1997
------------------------
<S> <C> <C> <C> <C>
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.74% 0.74% 1.00% 1.00%
Voluntary fee reductions......... $270 $438 $13 $485
ADMINISTRATION FEES:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions......... $143 $232 -- --
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.75% 0.75% -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR
B:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... 0.25% 0.25% -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR
C:
Annual fee before voluntary fee
reductions
(percentage of average net as-
sets)........................... -- -- -- 0.25%
TRANSFER AGENT AND MUTUAL FUND
ACCOUNTANT FEES................. $121 $174 $24 $183
</TABLE>
- -------
(a) For the year ended June 30, 1997, the information presented is for the
period from December 30, 1996 (commencement of operations) through June 30,
1997.
Continued
134
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
<TABLE>
<CAPTION>
AGGRESSIVE EQUITY
ALLOCATION INCOME
FUND (A) FUND
---------- ------
<S> <C> <C>
ELEVEN MONTHS ENDED MAY 31, 1998
--------------------------------
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 1.00% 1.00%
Voluntary fee reduction..................................... $54 --
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES.............. $36 $412
YEAR ENDED JUNE 30, 1997
------------------------
INVESTMENT ADVISORY FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 1.00% 1.00%
Voluntary fee reductions.................................... $20 --
ADMINISTRATION FEES:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 0.20% 0.20%
12B-1 FEES INVESTOR A:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
12B-1 FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
12B-1 FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.75%
SHAREHOLDER SERVICE FEES INVESTOR B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
SHAREHOLDER SERVICE FEES INVESTOR C:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
TRANSFER AGENT AND MUTUAL FUND ACCOUNTANT FEES.............. $25 $347
</TABLE>
- -------
(a) For the year ended June 30, 1997, the information presented is for the
period from December 30, 1996 (commencement of operations) through June 30,
1997.
Continued
135
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
6. CONCENTRATION OF CREDIT RISK
The Michigan Municipal Bond Fund invests a substantial proportion of its
assets in debt obligations issued by the State of Michigan and its political
subdivisions, agencies and public authorities. The Fund is more susceptible
to factors adversely affecting issuers of Michigan municipal securities than
a fund that is not concentrated in these issuers to the same extent.
7. FEDERAL INCOME TAX INFORMATION (UNAUDITED):
For the eleven months ended May 31, 1998, the following percentages of income
dividends paid by the Funds qualify for the dividends received deduction
available to corporations:
<TABLE>
<CAPTION>
QUALIFIED
DIVIDEND INCOME
---------------
<S> <C>
Large Capitalization Fund..................................... 57.48%
Bond Fund..................................................... 2.42%
Conservative Allocation Fund.................................. 2.73%
Balanced Allocation Fund...................................... 5.33%
Aggressive Allocation Fund.................................... 19.24%
Equity Income Fund............................................ 100.00%
</TABLE>
For federal income tax purposes, the following Funds have capital loss
carryforwards as of May 31, 1998, which are available to offset future
capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
AMOUNT EXPIRES
------ -------
<S> <C> <C>
U.S. Government Obligations Fund............................... $ 1 2002
Limited Maturity Bond Fund..................................... 4,367 2002
2,458 2003
479 2004
1,140 2005
724 2006
Intermediate Government Obligations Fund....................... 5,909 2002
2,891 2003
2,923 2004
U.S. Government Income Fund.................................... 3,358 2003
1,271 2004
2,853 2005
Bond Fund...................................................... 1,246 2003
2,130 2005
</TABLE>
Under current tax law, capital losses and foreign currency losses realized
after October 31, 1997 may be deferred and treated as occurring on the first
day of the fiscal year ended May 31, 1999. As of May 31, 1998, the following
funds have deferred losses of (amounts in thousands):
<TABLE>
<S> <C>
Tax-Free Fund......................................................... $ 1
Large Capitalization Fund............................................. 1,718
Limited Maturity Bond Fund............................................ 527
Intermediate Government Obligations Fund.............................. 29
U.S. Government Income Fund........................................... 11
</TABLE>
Continued
136
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1998
During the eleven months ended May 31, 1998, the Tax-Free Fund, the Municipal
Bond Fund and the Michigan Municipal Bond Fund declared $4,503,165,
$5,429,059 and $10,609,730, respectively, of tax-exempt income distributions.
During the eleven months ended May 31, 1998, the Funds declared long-term
capital gain distributions in the following amounts (amounts in thousands):
<TABLE>
<CAPTION>
28% CAPITAL 20% CAPITAL
GAINS GAINS
----------- -----------
<S> <C> <C>
Small Capitalization Fund............................. $ 4,798 $34,922
Mid Capitalization Fund............................... 46,248 71,643
Large Capitalization Fund............................. 28,807 4,639
International Discovery Fund.......................... -- 15,129
Municipal Bond Fund................................... 703 1,409
Michigan Municipal Bond Fund.......................... 262 421
Balanced Allocation Fund.............................. 1,223 6,307
Equity Income Fund.................................... 39,895 28,232
</TABLE>
See notes to financial statements.
137
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
PRIME OBLIGATIONS FUND
----------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
ELEVEN MONTHS ENDED -------------------------------------------------------------
MAY 31, 1998 1997 1996
------------------------------------------ ------------------------ ------------------------
INVESTOR A INVESTOR B(B) 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......... 0.045 0.027 0.046 0.048 0.049 0.050 0.051
-------- ------ -------- -------- -------- -------- --------
Distributions
Net investment
income......... (0.045) (0.027) (0.046) (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..... 4.63%(a) 2.75%(a) 4.73%(a) 4.91% 5.01% 5.07% 5.17%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $217,934 $ 387 $690,947 $195,046 $677,324 $147,478 $596,075
Ratio of expenses
to average net
assets ......... 0.76%(c) 1.66%(c) 0.66%(c) 0.73% 0.63% 0.74% 0.64%
Ratio of net
investment
income to
average net
assets.......... 4.93%(c) 4.01%(c) 5.04%(c) 4.80% 4.90% 4.93% 5.05%
Ratio of expenses
to average net
assets*......... 0.93%(c) 1.68%(c) 0.68%(c) 0.90% 0.65% 0.91% 0.66%
Ratio of net
investment
income to
average net
assets*......... 4.76%(c) 3.99%(c) 5.02%(c) 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) Not annualized.
(b) For the period September 30, 1997 (commencement of offering investor B
shares) to May 31, 1998.
(c) Annualized.
See notes to financial statements.
138
<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......... 0.047 0.048 0.027 0.028 0.028 0.029
-------- -------- -------- -------- -------- --------
Distributions
Net investment
income......... (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>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
See notes to financial statements.
139
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS FUND
-------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------
ELEVEN MONTHS ENDED
MAY 31, 1998 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.. 0.044 0.045 0.047 0.048 0.049 0.050
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.044) (0.045) (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............ 4.53%(a) 4.62%(a) 4.79% 4.89% 4.99% 5.10%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $169,210 $185,384 $212,082 $210,162 $186,944 $207,451
Ratio of expenses to
average net assets..... 0.76%(b) 0.66%(b) 0.74% 0.64% 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 4.83%(b) 4.93%(b) 4.69% 4.79% 4.88% 4.99%
Ratio of expenses to
average net assets*.... 0.93%(b) 0.68%(b) 0.91% 0.66% 0.91% 0.66%
Ratio of net investment
income to average net
assets*................ 4.66%(b) 4.91%(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) Not annualized.
(b) Annualized.
See notes to financial statements.
140
<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.. 0.047 0.048 0.027 0.028 0.028 0.028
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (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>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
See notes to financial statements.
141
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TAX-FREE FUND
-------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
ELEVEN MONTHS -------------------------------------------------
ENDED MAY 31, 1998 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.. 0.026 0.027 0.028 0.029 0.029 0.030
------- -------- ------- -------- ------- --------
Distributions
Net investment income.. (0.026) (0.027) (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............ 2.66%(a) 2.75%(a) 2.83% 2.94% 2.91% 3.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $55,106 $104,062 $47,466 $108,884 $41,713 $106,154
Ratio of expenses to
average net assets..... 0.76%(b) 0.66%(b) 0.78% 0.68% 0.76% 0.66%
Ratio of net investment
income to average net
assets................. 2.86%(b) 2.96%(b) 2.82% 2.90% 2.89% 2.97%
Ratio of expenses to
average net assets*.... 0.93%(b) 0.68%(b) 0.95% 0.70% 0.93% 0.68%
Ratio of net investment
income to average net
assets*................ 2.69%(b) 2.94%(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) Not annualized.
(b) Annualized.
See notes to financial statements.
142
<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.. 0.029 0.030 0.018 0.019 0.019 0.019
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (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>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
See notes to financial statements.
143
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
TREASURY FUND
-------------------------------------------------------------------------------
ELEVEN MONTHS YEAR ENDED JUNE 30,
ENDED MAY 31, -------------------------------------------------
1998 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.. 0.045 0.046 0.047 0.048 0.049 0.050
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.045) (0.046) (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............ 4.61%(a) 4.70%(a) 4.82% 4.93% 5.04% 5.14%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $240,208 $321,584 $176,006 $324,377 $158,723 $223,416
Ratio of expenses to
average net assets..... 0.67%(b) 0.57%(b) 0.67% 0.57% 0.70% 0.60%
Ratio of net investment
income to average net
assets................. 4.90%(b) 5.00%(b) 4.72% 4.83% 4.87% 4.98%
Ratio of expenses to
average net assets*.... 0.92%(b) 0.67%(b) 0.92% 0.67% 0.95% 0.70%
Ratio of net investment
income to average net
assets*................ 4.65%(b) 4.90%(b) 4.47% 4.73% 4.62% 4.88%
</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) Not annualized.
(b) Annualized.
See notes to financial statements.
144
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
See notes to financial statements.
<TABLE>
<CAPTION>
TREASURY FUND, CONTINUED
----------------------------------------------------
YEAR ENDED JUNE 30,
------------------------ DECEMBER 1, 1993 TO
1995 JUNE 30, 1994 (A)
------------------------ ---------------------------
INVESTOR A INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ---------- -------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING
OF PERIOD................ $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- ------- -------
Investment Activities
Net investment income.... 0.047 0.048 0.016 0.017
-------- -------- ------- -------
Distributions
Net investment income.... (0.047) (0.048) (0.016) (0.017)
-------- -------- ------- -------
NET ASSET VALUE, END OF
PERIOD................... $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======= =======
Total Return.............. 4.81% 4.91% 1.66%(b) 1.72%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)............. $105,391 $192,232 $56,535 $76,035
Ratio of expenses to
average net assets....... 0.75% 0.64% 0.64%(c) 0.54%(c)
Ratio of net investment
income to average net
assets................... 4.82% 4.95% 2.84%(c) 3.15%(c)
Ratio of expenses to
average net assets*...... 1.04% 0.78% 0.99%(c) 0.74%(c)
Ratio of net investment
income to average net
assets*.................. 4.52% 4.81% 2.49%(c) 2.95%(c)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
145
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
SMALL CAPITALIZATION FUND
-----------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------------- -------------------------------------------------
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..... $ 27.55 $ 26.99 $ 27.05 $ 27.91 $ 34.17 $ 33.78 $ 33.83 $ 34.50
-------- ------- ------- -------- -------- ------- ------- --------
Investment Activities
Net investment loss..... (0.35) (0.53) (0.49) (0.27) (0.29) (0.41) (0.34) (0.22)
Net realized and
unrealized gains
(losses) from
investments............ (0.18) (0.14) (0.18) (0.19) (1.08) (1.13) (1.19) (1.12)
-------- ------- ------- -------- -------- ------- ------- --------
Total from Investment
Activities............. (0.53) (0.67) (0.67) (0.46) (1.37) (1.54) (1.53) (1.34)
-------- ------- ------- -------- -------- ------- ------- --------
Distributions
Net realized gains...... (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- ------- --------
Total Distributions..... (1.30) (1.30) (1.30) (1.30) (5.25) (5.25) (5.25) (5.25)
-------- ------- ------- -------- -------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 25.72 $ 25.02 $ 25.08 $ 26.15 $ 27.55 $ 26.99 $ 27.05 $ 27.91
======== ======= ======= ======== ======== ======= ======= ==========
Total Return (excludes
sales and redemption
charges)................ (1.90)%(a) (2.47)%(a) (2.43)%(a) (1.62)%(a) (4.53)% (5.13)% (5.08)% (4.39)%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $163,178 $41,399 $14,747 $527,805 $188,645 $46,895 $14,962 $602,787
Ratio of expenses to
average net assets...... 1.60%(b) 2.35%(b) 2.35%(b) 1.35%(b) 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
loss to average net
assets.................. (1.23)%(b) (1.99)%(b) (1.99)%(b) (0.99)%(b) (1.19)% (1.94)% (1.94)% (0.94)%
Ratio of expenses to
average net assets*..... 1.60%(b) 2.35%(b) 2.35%(b) 1.35%(b) 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
loss to average net
assets*................. (1.23)%(b) (1.99)%(b) (1.99)%(b) (0.99)%(b) (1.19)% (1.94)% (1.94)% (0.94)%
Portfolio turnover (c)... 46.17% 46.17% 46.17% 46.17% 48.45% 48.45% 48.45% 48.45%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, t he ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
(c) 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>
- --------------------------------------------------------------------------------
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 (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 25.88 $ 25.79 $25.91 $ 26.08 $ 19.75 $19.83 $ 24.17 $ 19.83
-------- ------- ------ -------- ------- ------ ------- --------
Investment Activities
Net investment loss.. (0.23) (0.39) (0.20) (0.27) (0.18) (0.19) (0.05) (0.25 )
Net realized and
unrealized gains
(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%(b) 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%(c) 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)%(c) 1.06%
Ratio of expenses to
average net assets*.. 1.54% 2.29% 2.29% 1.29% 1.58% 2.55% 3.53%(c) 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)%(c) (1.06)%
Portfolio turnover
(d).................. 67.22% 67.22% 67.22% 67.22% 50.53% 50.53% 50.53% 50.53%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
147
<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 (B) 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 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)%(c) (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%(d) 1.30% 1.29% 1.26%
Ratio of net investment
income (loss) to
average net assets..... (1.24)% (2.19)%(d) (1.14)% (1.02)% (0.98)%
Ratio of expenses to
average net assets*.... 1.55% 2.61%(d) 1.30% 1.36% 1.28%
Ratio of net investment
loss to average net
assets*................ (1.39)% (2.45)%(d) (1.14)% (1.09)% (1.01)%
Portfolio turnover (e).. 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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>
MID-CAPITALIZATION FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
---------------------------------------------------- ------------------------------------------------
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..... $ 15.72 $ 15.12 $15.24 $ 15.82 $ 20.71 $ 20.28 $ 20.36 $ 20.83
Investment Activities
Net investment loss..... (0.14) (0.23) (0.23) (0.11) (0.16) (0.24) (0.21) (0.13)
Net realized and
unrealized gains from
investments............ 2.51 2.42 2.46 2.52 1.30 1.21 1.22 1.25
------- ------- ------ -------- ------- ------- ------- --------
Total from Investment
Activities............. 2.37 2.19 2.23 2.41 1.14 0.97 1.01 1.12
------- ------- ------ -------- ------- ------- ------- --------
Distributions
Net realized gains...... (3.11) (3.11) (3.11) (3.11) (6.13) (6.13) (6.13) (6.13)
------- ------- ------ -------- ------- ------- ------- --------
Total Distributions..... (3.11) (3.11) (3.11) (3.11) (6.13) (6.13) (6.13) (6.13)
------- ------- ------ -------- ------- ------- ------- --------
NET ASSET VALUE, END OF
PERIOD.................. $ 14.98 $ 14.20 $14.36 $ 15.12 $ 15.72 $ 15.12 $ 15.24 $ 15.82
======= ======= ====== ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)................ 16.84%(a) 16.27%(a) 16.44%(a) 16.98%(a) 5.78% 4.94% 5.17% 5.58%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $90,183 $23,780 $2,228 $518,080 $80,634 $21,994 $ 2,018 $544,082
Ratio of expenses to
average net assets...... 1.55%(b) 2.30%(b) 2.30%(b) 1.30%(b) 1.56% 2.31% 2.31% 1.31%
Ratio of net investment
loss to average net
assets.................. (1.02)%(b) (1.77)%(b) (1.77)%(b) (0.77)%(b) (1.05)% (1.80)% (1.80)% (0.80)%
Ratio of expenses to
average net assets*..... 1.55%(b) 2.30%(b) 2.30%(b) 1.30%(b) 1.56% 2.31% 2.31% 1.31%
Ratio of net investment
loss to average net
assets*................. (1.02)%(b) (1.77)%(b) (1.77)%(b) (0.77)%(b) (1.05)% (1.80)% (1.80)% (0.80)%
Portfolio turnover (c)... 38.41% 38.41% 38.41% 38.41% 38.47% 38.47% 38.47% 38.47%
</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) Not annualized.
(b) Annualized.
(c) 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.
149
<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 (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 16.56 $ 16.35 $ 16.40 $ 16.62 $ 14.69 $14.63 $16.29 $ 14.70
Investment
Activities
Net investment
loss........... (0.16) (0.23) (0.17) (0.16) (0.12) (0.11) (0.02) (0.08)
Net realized and
unrealized
gains from
investments.... 4.97 4.82 4.79 5.03 3.46 3.30 1.60 3.47
------- ------- ------- -------- ------- ------ ------ --------
Total from
Investment
Activities..... 4.81 4.59 4.62 4.87 3.34 3.19 1.58 3.39
------- ------- ------- -------- ------- ------ ------ --------
Distributions
Net realized
gains.......... (0.66) (0.66) (0.66) (0.66) (0.48) (0.48) -- (0.49)
In excess of net
realized
gains.......... -- -- -- -- (0.99) (0.99) (1.47) (0.98)
------- ------- ------- -------- ------- ------ ------ --------
Total
Distributions.. (0.66) (0.66) (0.66) (0.66) (1.47) (1.47) (1.47) (1.47)
------- ------- ------- -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 20.71 $ 20.28 $ 20.36 $ 20.83 $ 16.56 $16.35 $16.40 $ 16.62
======= ======= ======= ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)........ 29.57% 28.59% 28.69% 29.83% 24.85% 23.88% 23.56%(b) 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%(c) 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)%(c) (0.64)%
Ratio of expenses
to average net
assets*......... 1.54% 2.29% 2.29% 1.29% 1.54% 2.54% 2.53%(c) 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)%(c) (0.65)%
Portfolio
turnover (d).... 49.27% 49.27% 49.27% 49.27% 46.39% 46.39% 46.39% 46.39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
150
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MID-CAPITALIZATION FUND, CONTINUED
--------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------
1994 1993 (A)
------------------------------------------ -------------------------
INVESTOR A INVESTOR B (B) 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 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)
------- ------- -------- ------- --------
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)%(c) (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%(d) 1.28% 1.28% 1.24%
Ratio of net investment
loss to average net
assets................. (0.75)% (1.57)%(d) (0.65)% (0.12)% (0.09)%
Ratio of expenses to
average net assets*.... 1.53% 2.56%(d) 1.28% 1.35% 1.27%
Ratio of net investment
loss to average net
assets*................ (0.90)% (1.83)%(d) (0.65)% (0.19)% (0.11)%
Portfolio turnover (e).. 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
151
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LARGE CAPITALIZATION FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------------- ----------------------------------------------
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..... $ 14.44 $ 14.34 $14.28 $ 14.48 $ 11.23 $11.22 $11.16 $ 11.25
------- ------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. (0.06) (0.12) (0.06) (0.03) -- (0.05) (0.06) 0.03
Net realized and
unrealized gains from
investments............ 3.51 3.43 3.32 3.52 3.30 3.25 3.27 3.31
------- ------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 3.45 3.31 3.26 3.49 3.30 3.20 3.21 3.34
------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income... -- -- -- -- (0.01) -- (0.01) (0.03)
Tax return of capital... (0.03) (0.03) (0.03) (0.03) -- -- -- --
Net realized gains...... (1.67) (1.67) (1.67) (1.67) (0.08) (0.08) (0.08) (0.08)
------- ------- ------ -------- ------- ------ ------ --------
Total Distributions..... (1.70) (1.70) (1.70) (1.70) (0.09) (0.08) (0.09) (0.11)
------- ------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD.................. $ 16.19 $ 15.95 $15.84 $ 16.27 $ 14.44 $14.34 $14.28 $ 14.48
======= ======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)................ 25.95%(a) 25.12%(a) 24.87%(a) 26.18%(a) 29.52% 28.62% 28.82% 29.81%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $21,628 $10,169 $ 268 $358,221 $12,260 $4,130 $ 42 $338,388
Ratio of expenses to
average net assets...... 1.35%(b) 2.09%(b) 2.09%(b) 1.10%(b) 1.37% 2.12% 2.12% 1.12%
Ratio of net investment
income (loss) to average
net assets.............. (0.45)%(b) (1.21)%(b) (1.24)%(b) (0.19)%(b) (0.14)% (0.88)% (0.91)% 0.19%
Ratio of expenses to
average net assets*..... 1.35%(b) 2.09%(b) 2.09%(b) 1.10%(b) 1.37% 2.12% 2.12% 1.12%
Ratio of net investment
income (loss) to average
net assets*............. (0.45)%(b) (1.21)%(b) (1.24)%(b) (0.19)%(b) (0.14)% (0.88)% (0.91)% 0.19%
Portfolio turnover (c)... 24.74% 24.74% 24.74% 24.74% 48.44% 48.44% 48.44% 48.44%
</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) Not annualized.
(b) Annualized.
(c) 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>
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.... $10.00 $10.00 $10.00 $ 10.00
------ ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.03 0.01 -- 0.03
Net realized and
unrealized gains from
investments........... 1.23 1.23 1.17 1.25
------ ------ ------ --------
Total from Investment
Activities............ 1.26 1.24 1.17 1.28
------ ------ ------ --------
Distributions
Net investment income.. (0.03) (0.02) -- (0.03)
In excess of net
investment income..... -- -- (0.01) --
------ ------ ------ --------
Total Distributions.... (0.03) (0.02) (0.01) (0.03)
------ ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $11.23 $11.22 $11.16 $ 11.25
====== ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 8.99%(b) 8.77%(b) 8.14%(b) 12.86%(b)
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%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) 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.
153
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND
-------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------------ -----------------------------------------------
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..... $ 16.25 $ 15.85 $16.21 $ 16.41 $ 14.01 $ 13.77 $14.08 $ 14.11
------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. (0.09) (0.19) (0.17) (0.04) (0.07) (0.16) (0.15) (0.05)
Net realized and
unrealized gains from
investments and foreign
currencies............. 0.86 0.83 0.83 0.84 2.31 2.24 2.28 2.35
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities............. 0.77 0.64 0.66 0.80 2.24 2.08 2.13 2.30
------- ------- ------ -------- ------- ------- ------ --------
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.................. $ 16.51 $ 15.98 $16.36 $ 16.70 $ 16.25 $ 15.85 $16.21 $ 16.41
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ 5.17 %(a) 4.47 %(a) 4.49 %(a) 5.31 %(a) 15.99 % 15.11 % 15.13 % 16.34 %
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)............ $43,268 $12,840 $1,026 $427,922 $48,557 $13,516 $ 875 $426,111
Ratio of expenses to
average net assets...... 1.82 %(b) 2.56 %(b) 2.56 %(b) 1.56 %(b) 1.80 % 2.55 % 2.56 % 1.55 %
Ratio of net investment
income (loss) to average
net assets.............. (0.75)%(b) (1.49)%(b) (1.48)%(b) (0.47)%(b) (0.54)% (1.29)% (1.28)% (0.29)%
Ratio of expenses to
average net assets*..... 1.82 %(b) 2.56 %(b) 2.56 %(b) 1.56 %(b) 1.80 % 2.55 % 2.56 % 1.55 %
Ratio of net investment
income (loss) to average
net assets*............. (0.75)%(b) (1.49)%(b) (1.48)%(b) (0.47)%(b) (0.54)% (1.29)% (1.28)% (0.29)%
Portfolio turnover (c)... 34.15 % 34.15 % 34.15 % 34.15 % 45.18 % 45.18 % 45.18 % 45.18 %
</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) Not annualized.
(b) Annualized.
(c) 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>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND, CONTINUED
--------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------------------------------
1996 1995
----------------------------------------------- ----------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD........... $ 12.23 $12.15 $12.42 $ 12.33 $ 13.18 $13.21 $12.97 $ 13.24
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income (loss)... (0.02) (0.08) (0.10) 0.02 0.03 (0.04) 0.03 0.04
Net realized and
unrealized gains
(losses) from
investments and
foreign
currencies...... 1.81 1.70 1.79 1.80 (0.36) (0.40) 0.04 (0.33)
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities....... 1.79 1.62 1.69 1.82 (0.33) (0.44) 0.07 (0.29)
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.......... -- -- -- (0.02) -- -- -- --
Net realized
gains........... (0.01) -- (0.03) (0.02) (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------ ------ --------
Total Distribu-
tions........... (0.01) -- (0.03) (0.04) (0.62) (0.62) (0.62) (0.62)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD.... $14.01 $13.77 $14.08 $ 14.11 $ 12.23 $12.15 $12.42 $ 12.33
------- ------ ------ -------- ------- ------ ------ --------
Total Return
(excludes sales
and redemption
charges)......... 14.65 % 13.33 % 13.62 % 14.76 % (2.19)% (3.03)% (1.15)%(b) (1.86)%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end
of period (000).. $39,575 $9,489 $ 474 $364,095 $34,228 $5,469 $ 82 $264,759
Ratio of expenses
to average net
assets........... 1.80 % 2.55 % 2.50 % 1.55 % 1.78 % 2.57 % 2.32 %(c) 1.56 %
Ratio of net
investment income
(loss) to average
net assets....... (0.11)% (0.86)% (0.84)% 0.12 % 0.08 % (0.49)% 1.74 %(c) 0.31 %
Ratio of expenses
to average net
assets*.......... 1.88 % 2.63 % 2.62 % 1.55 % 1.91 % 2.92 % 3.27 %(c) 1.59 %
Ratio of net
investment income
(loss) to average
net assets*...... (0.19)% (0.94)% (0.97)% 0.12 % (0.06)% (0.84)% 0.79 %(c) 0.28 %
Portfolio turnover
(d).............. 54.47 % 54.47 % 54.47 % 54.47 % 104.39 % 104.39 % 104.39 % 104.39 %
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
155
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERNATIONAL DISCOVERY FUND, CONTINUED
---------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------
DECEMBER 29, 1992 TO
1994 JUNE 30 1993(A)(E)
----------------------------------------- ---------------------------
INVESTOR A INVESTOR B(C) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.50 $14.12 $ 11.54 $10.00 $ 10.00
------- ------ -------- ------ --------
Investment Activities
Net investment income
(loss)................ (0.02) (0.01) (0.01) 0.03 0.04
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.... 1.74 (0.90) 1.75 1.48 1.51
------- ------ -------- ------ --------
Total from Investment
Activities............. 1.72 (0.91) 1.74 1.51 1.55
------- ------ -------- ------ --------
Distributions
Net investment income.. (0.02) -- (0.02) (0.01) (0.01)
Net realized gains..... (0.02) -- (0.02) -- --
------- ------ -------- ------ --------
Total Distributions.... (0.04) -- (0.04) (0.01) (0.01)
------- ------ -------- ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 13.18 $13.21 $ 13.24 $11.50 $ 11.54
======= ====== ======== ====== ========
Total Return (excludes
sales and redemption
charges)............... 14.99 % (6.44)%(d) 15.12 % 15.11 %(d) 15.52 %(d)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $36,297 $2,680 $261,798 $8,353 $114,822
Ratio of expenses to
average net assets..... 1.63 % 2.56 %(b) 1.52 % 1.64 %(b) 1.58 %(b)
Ratio of net investment
income (loss) to
average net assets..... (0.29)% (0.22)%(b) (0.30)% (1.02)%(b) (0.82)%(b)
Ratio of expenses to
average net assets*.... 1.84 % 2.61 %(b) 1.57 % 1.81 %(b) 1.63 %(b)
Ratio of net investment
income (loss) to
average net assets*.... (0.49)% (0.27)%(b) (0.35)% (0.85)%(b) (0.77)%(b)
Portfolio turnover (f).. 37.23 % 37.23 % 37.23 % 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Period from commencement of operations.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
156
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------------- ----------------------------------------------
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.... $ 9.49 $ 9.49 $ 9.29 $ 9.49 $ 9.48 $ 9.46 $ 9.29 $ 9.48
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income.. 0.47 0.40 0.42 0.50 0.55 0.48 0.48 0.57
Net realized and
unrealized gains
(losses) from
investments........... 0.01 0.02 (0.01) 0.01 0.01 0.02 -- 0.02
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.48 0.42 0.41 0.51 0.56 0.50 0.48 0.59
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.47) (0.41) (0.42) (0.50) (0.55) (0.47) (0.48) (0.58)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions.... (0.47) (0.41) (0.42) (0.50) (0.55) (0.47) (0.48) (0.58)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.50 $ 9.50 $ 9.28 $ 9.50 $ 9.49 $ 9.49 $ 9.29 $ 9.49
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.23%(a) 4.50%(a) 4.48%(a) 5.46%(a) 6.11% 5.39% 5.26% 6.42%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $41,571 $1,553 $2,199 $150,510 $27,381 $1,492 $ 41 $136,126
Ratio of expenses to
average net assets..... 1.07%(b) 1.82%(b) 1.80%(b) 0.82%(b) 1.11% 1.86% 1.86% 0.85%
Ratio of net investment
income to average net
assets................. 5.37%(b) 4.63%(b) 4.60%(b) 5.63%(b) 5.76% 5.02% 4.97% 6.03%
Ratio of expenses to
average net assets*.... 1.31%(b) 2.06%(b) 2.04%(b) 1.06%(b) 1.35% 2.10% 2.10% 1.10%
Ratio of net investment
income to average net
assets*................ 5.13%(b) 4.39%(b) 4.36%(b) 5.39%(b) 5.52% 4.78% 4.73% 5.78%
Portfolio turnover (c).. 225.88% 225.88% 225.88% 225.88% 607.84% 607.84% 607.84% 607.84%
</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) Not annualized.
(b) Annualized.
(c) 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.
157
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
LIMITED MATURITY BOND FUND, CONTINUED
---------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD. $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.35 $ 9.57
------- ------ ------ -------- ------- ------ ------ --------
Investment
Activities
Net investment
income......... 0.62 0.55 0.58 0.65 0.56 0.49 0.20 0.58
Net realized and
unrealized
gains (losses)
from
investments.... (0.21) (0.22) (0.23) (0.21) 0.13 0.12 0.17 0.13
------- ------ ------ -------- ------- ------ ------ --------
Total from
Investment
Activities..... 0.41 0.33 0.35 0.44 0.69 0.61 0.37 0.71
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income......... (0.62) (0.55) (0.58) (0.65) (0.55) (0.47) (0.19) (0.57)
Net realized
gains.......... (0.01) -- -- (0.01) -- -- -- --
Tax return of
capital........ (0.01) (0.02) -- (0.01) -- -- -- --
------- ------ ------ -------- ------- ------ ------ --------
Total
Distributions.. (0.64) (0.57) (0.59) (0.67) (0.55) (0.47) (0.19) (0.57)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD... $ 9.48 $ 9.46 $ 9.29 $ 9.48 $ 9.71 $ 9.70 $ 9.53 $ 9.71
======= ====== ====== ======== ======= ====== ====== ========
Total Return
(excludes sales
and redemption
charges)........ 4.37% 3.43% 3.71% 4.65% 7.53% 6.68% 3.58%(b) 7.76%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $14,390 $1,547 $ 11 $136,681 $18,930 $ 892 -- $141,781
Ratio of expenses
to average net
assets.......... 1.09% 1.84% 1.82% 0.84% 1.05% 1.85% 1.18%(c) 0.84%
Ratio of net
investment
income to
average net
assets.......... 6.09% 5.35% 5.34% 6.32% 5.89% 5.14% 5.61%(c) 6.11%
Ratio of expenses
to average net
assets*......... 1.33% 2.08% 2.02% 1.08% 1.36% 2.36% 1.18%(c) 1.11%
Ratio of net
investment
income to
average net
assets*......... 5.85% 5.11% 5.14% 6.08% 5.58% 4.62% 5.61%(c) 5.84%
Portfolio
turnover (d).... 618.60% 618.60% 618.60% 618.60% 397.97% 397.97% 397.97% 397.97%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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>
LIMITED MATURITY BOND FUND, CONTINUED
-----------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------
1994 1993 (A)
---------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.18 $ 9.99 $ 10.18 $ 10.25 $ 10.25
------- ------ -------- ------- --------
Investment Activities
Net investment income.. 0.62 0.23 0.64 0.65 0.65
Net realized and
unrealized gains
(losses) from
investments........... (0.58) (0.44) (0.59) 0.13 0.13
------- ------ -------- ------- --------
Total from Investment
Activities............ 0.04 (0.21) 0.05 0.78 0.78
------- ------ -------- ------- --------
Distributions
Net investment income.. (0.61) (0.22) (0.62) (0.69) (0.69)
Net realized gains..... -- -- -- (0.16) (0.16)
In excess of net
realized gains........ (0.04) -- (0.04) -- --
------- ------ -------- ------- --------
Total Distributions.... (0.65) (0.22) (0.66) (0.85) (0.85)
------- ------ -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.57 $ 9.56 $ 9.57 $ 10.18 $ 10.18
======= ====== ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... 0.32% (2.09)%(c) 0.43% 7.96% 7.98%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $24,907 $ 629 $156,678 $18,060 $141,706
Ratio of expenses to
average net assets..... 0.86% 1.78%(d) 0.76% 0.75% 0.72%
Ratio of net investment
income to average net
assets................. 6.22% 5.36%(d) 6.32% 6.41% 6.45%
Ratio of expenses to
average net assets*.... 1.30% 2.33%(d) 1.05% 1.08% 1.01%
Ratio of net investment
income to average net
assets*................ 5.78% 4.81%(d) 6.03% 6.08% 6.16%
Portfolio turnover (e).. 353.28% 353.28% 353.28% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
159
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------------- ----------------------------------------------
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.... $ 9.73 $ 9.71 $ 9.54 $ 9.73 $ 9.70 $ 9.67 $ 9.52 $ 9.71
------- ------ ------ -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.49 0.43 0.40 0.52 0.52 0.45 0.45 0.55
Net realized and
unrealized gains
(losses) from
investments........... 0.16 0.15 0.18 0.16 0.04 0.03 0.02 0.03
------- ------ ------ -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.65 0.58 0.58 0.68 0.56 0.48 0.47 0.58
------- ------ ------ -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.49) (0.43) (0.43) (0.52) (0.53) (0.44) (0.45) (0.56)
Tax return of capital.. (0.01) (0.01) (0.01) (0.01) -- -- -- --
------- ------ ------ -------- -------- -------- -------- --------
Total Distributions.... (0.50) (0.44) (0.44) (0.53) (0.53) (0.44) (0.45) (0.56)
------- ------ ------ -------- -------- -------- -------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.88 $ 9.85 $ 9.68 $ 9.88 $ 9.73 $ 9.71 $ 9.54 $ 9.73
======= ====== ====== ======== ======== ======== ======== ========
Total Return (excludes
sales and redemption
charges)............... 6.78%(a) 6.07%(a) 6.19%(a) 7.03%(a) 5.91% 5.09% 5.03% 6.11%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $14,461 $1,852 $ 235 $171,481 $ 18,552 $ 1,972 $ 194 $187,856
Ratio of expenses to
average net assets..... 1.22%(b) 1.97%(b) 1.96%(b) 0.97%(b) 1.23% 1.98% 1.99% 0.98%
Ratio of net investment
income to average net
assets................. 5.42%(b) 4.67%(b) 4.67%(b) 5.67%(b) 5.41% 4.67% 4.69% 5.66%
Ratio of expenses to
average net assets*.... 1.31%(b) 2.06%(b) 2.05%(b) 1.06%(b) 1.32% 2.07% 2.07% 1.07%
Ratio of net investment
income to average net
assets*................ 5.34%(b) 4.58%(b) 4.58%(b) 5.58%(b) 5.32% 4.58% 4.61% 5.57%
Portfolio turnover (c).. 774.28% 774.28% 774.28% 774.28% 1,516.78% 1,516.78% 1,516.78% 1,516.78%
</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) Not annualized.
(b) Annualized.
(c) 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>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND, CONTINUED
-------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.42 $ 9.62
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment
income.............. 0.60 0.53 0.53 0.62 0.50 0.43 0.18 0.52
Net realized and
unrealized gains
(losses) from
investments......... (0.25) (0.24) (0.25) (0.24) 0.31 0.30 0.33 0.31
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities.......... 0.35 0.29 0.28 0.38 0.81 0.73 0.51 0.83
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.............. (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions.. (0.58) (0.51) (0.52) (0.60) (0.50) (0.44) (0.17) (0.52)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE,
END OF PERIOD........ $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $ 9.93
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............. 3.69% 2.93% 2.86% 3.95% 8.69% 7.84% 5.21%(b) 9.02%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $22,954 $1,843 $ 80 $225,313 $27,521 $ 977 $ 9 $249,169
Ratio of expenses to
average net assets... 1.21% 1.96% 1.96% 0.96% 1.25% 2.06% 2.09%(c) 1.04%
Ratio of net
investment income to
average net assets... 5.51% 4.78% 4.83% 5.76% 5.22% 4.41% 4.24%(c) 5.43%
Ratio of expenses to
average net assets*.. 1.30% 2.05% 2.05% 1.05% 1.41% 2.42% 2.36%(c) 1.16%
Ratio of net
investment income to
average net assets*.. 5.42% 4.69% 4.74% 5.67% 5.07% 4.05% 3.98%(c) 5.31%
Portfolio turnover
(d).................. 916.39% 916.39% 916.39% 916.39% 549.93% 549.13% 549.13% 549.13%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
161
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT OBLIGATIONS FUND, CONTINUED
------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------
1994 1993 (A)
----------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.53 $10.14 $ 10.53 $ 10.42 $ 10.42
------- ------ -------- ------- --------
Investment Activities
Net investment income.. 0.59 0.21 0.60 0.68 0.68
Net realized and
unrealized gains
(losses) from
investments........... (0.66) (0.54) (0.66) 0.21 0.22
------- ------ -------- ------- --------
Total from Investment
Activities............ (0.07) (0.33) (0.06) 0.89 0.90
------- ------ -------- ------- --------
Distributions
Net investment income.. (0.59) (0.21) (0.60) (0.73) (0.73)
Net realized gains..... -- -- -- (0.05) (0.06)
In excess of net
realized gains........ (0.25) -- (0.25) -- --
------- ------ -------- ------- --------
Total Distributions.... (0.84) (0.21) (0.85) (0.78) (0.79)
------- ------ -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.62 $ 9.60 $ 9.62 $ 10.53 $ 10.53
======= ====== ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... (0.90)% (3.31)%(c) (0.80)% 8.92% 8.94%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $36,106 $ 531 $281,232 $37,055 $272,607
Ratio of expenses to
average net assets..... 1.00% 1.92%(d) 0.90% 0.90% 0.87%
Ratio of net investment
income to average net
assets................. 5.80% 4.80%(d) 5.90% 6.51% 6.54%
Ratio of expenses to
average net assets*.... 1.29% 2.32%(d) 1.04% 1.08% 1.01%
Ratio of net investment
income to average net
assets*................ 5.51% 4.41%(d) 5.76% 6.33% 6.40%
Portfolio turnover (e).. 546.06% 546.06% 546.06% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND
-------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------------ ----------------------------------------------
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 ... $ 9.15 $ 9.13 $ 9.10 $ 9.15 $ 9.25 $ 9.21 $ 9.19 $ 9.25
------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income.. 0.61 0.55 0.54 0.63 0.70 0.63 0.64 0.72
Net realized and
unrealized (losses)
from investments...... 0.08 0.07 0.08 0.08 (0.10) (0.09) (0.11) (0.10)
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities............ 0.69 0.62 0.62 0.71 0.60 0.54 0.53 0.62
------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net investment income.. (0.53) (0.47) (0.47) (0.55) (0.59) (0.52) (0.50) (0.61)
Tax return of capital.. (0.04) (0.04) (0.04) (0.04) (0.11) (0.10) (0.12) (0.11)
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions.... (0.57) (0.51) (0.51) (0.59) (0.70) (0.62) (0.62) (0.72)
------- ------- ------ -------- ------- ------- ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.27 $ 9.24 $ 9.21 $ 9.27 $ 9.15 $ 9.13 $ 9.10 $ 9.15
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 7.80%(a) 6.98%(a) 7.03%(a) 8.04%(a) 6.86% 6.06% 6.07% 6.91%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $54,710 $23,739 $ 363 $161,567 $58,589 $23,448 $ 69 $148,854
Ratio of expenses to
average net assets..... 1.00%(b) 1.75%(b) 1.74%(b) 0.75%(b) 1.02% 1.77% 1.77% 0.77%
Ratio of net investment
income to average net
assets................. 7.20%(b) 6.45%(b) 6.34%(b) 7.44%(b) 7.64% 6.89% 6.89% 7.90%
Ratio of expenses to
average net assets*.... 1.34%(b) 2.09%(b) 2.08%(b) 1.09%(b) 1.36% 2.11% 2.11% 1.11%
Ratio of net investment
income to average net
assets*................ 6.86%(b) 6.11%(b) 6.01%(b) 7.10%(b) 7.30% 6.55% 6.55% 7.56%
Portfolio turnover (c).. 278.94% 278.94% 278.94% 278.94% 499.53% 499.53% 499.53% 499.53%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Not annualized.
(b) Annualized.
(c) 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.
163
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. GOVERNMENT INCOME FUND, CONTINUED
-------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C(A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD... $ 9.42 $ 9.39 $ 9.36 $ 9.42 $ 9.41 $ 9.38 $ 9.12 $ 9.41
------- ------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income. 0.73 0.66 0.66 0.75 0.75 0.68 0.28 0.76
Net realized and
unrealized gains
(losses) from
investments.......... (0.17) (0.18) (0.17) (0.17) -- 0.01 0.24 0.01
------- ------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities........... 0.56 0.48 0.49 0.58 0.75 0.69 0.52 0.77
------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income. (0.65) (0.59) (0.66) (0.67) (0.66) (0.61) (0.25) (0.68)
Tax return of capital. (0.08) (0.07) -- (0.08) (0.08) (0.07) (0.03) (0.08)
------- ------- ------ -------- ------- ------ ------ --------
Total Distributions... (0.73) (0.66) (0.66) (0.75) (0.74) (0.68) (0.28) (0.76)
------- ------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................ $ 9.25 $ 9.21 $ 9.19 $ 9.25 $ 9.42 $ 9.39 $ 9.36 $ 9.42
======= ======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 5.97% 5.22% 5.25% 6.34% 8.46% 7.71% 5.26%(b) 8.70%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).......... $52,250 $19,556 $ 70 $130,615 $50,931 $8,478 $ 29 $110,190
Ratio of expenses to
average net assets.... 1.01% 1.76% 1.76% 0.76% 1.04% 1.83% 2.88%(c) 0.83%
Ratio of net investment
income to average net
assets................ 7.70% 6.92% 6.92% 7.94% 8.03% 7.28% 11.54%(c) 8.25%
Ratio of expenses to
average net assets*... 1.35% 2.10% 2.10% 1.10% 1.44% 2.44% 2.88%(c) 1.19%
Ratio of net investment
income to average net
assets*............... 7.36% 6.58% 6.58% 7.60% 7.63% 6.67% 11.54%(c) 7.89%
Portfolio turnover (d). 348.01% 348.01% 348.01% 348.01% 114.71% 114.71% 114.71% 114.71%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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>
U.S. GOVERNMENT INCOME FUND, CONTINUED
--------------------------------------------------------------------
YEAR ENDED JUNE 30,
---------------------------------------- NOVEMBER 12, 1992 TO
1994 JUNE 30, 1993 (A)(E)
---------------------------------------- ---------------------------
INVESTOR A INVESTOR B(C) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- ------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.04 $ 9.88 $ 10.04 $ 10.00 $ 10.00
------- ------ -------- ------- -------
Investment Activities
Net investment income.. 0.74 0.28 0.74 0.48 0.48
Net realized and
unrealized gains
(losses) from
investments........... (0.64) (0.50) (0.63) 0.04 0.04
------- ------ -------- ------- -------
Total from Investment
Activities............ 0.10 (0.22) 0.11 0.52 0.52
------- ------ -------- ------- -------
Distributions
Net investment income.. (0.72) (0.27) (0.73) (0.48) (0.48)
Tax return of capital.. (0.01) (0.01) (0.01) -- --
------- ------ -------- ------- -------
Total Distributions.... (0.73) (0.28) (0.74) (0.48) (0.48)
------- ------ -------- ------- -------
NET ASSET VALUE, END OF
PERIOD................. $ 9.41 $ 9.38 $ 9.41 $ 10.04 $ 10.04
======= ====== ======== ======= =======
Total Return (excludes
sales and redemption
charges)............... 0.94% (2.26)%(d) 1.04% 5.35%(d) 5.37%(d)
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $54,027 $2,787 $101,506 $32,633 $71,862
Ratio of expenses to
average net assets..... 0.82% 1.77%(b) 0.72% 0.75%(b) 0.70%(b)
Ratio of net investment
income to average net
assets................. 7.42% 6.72%(b) 7.51% 7.41%(b) 7.49%(b)
Ratio of expenses to
average net assets*.... 1.36% 2.42%(b) 1.11% 1.23%(b) 1.09%(b)
Ratio of net investment
income to average net
assets*................ 6.87% 6.08%(b) 7.12% 6.93%(b) 7.09%(b)
Portfolio turnover (f).. 102.24% 102.24% 102.24% 135.06% 135.06%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses, and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Annualized.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Period from commencement of operations.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between the classes of shares issued.
See notes to financial statements.
165
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------------- ----------------------------------------------
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.... $ 9.68 $ 9.69 $ 9.65 $ 9.73 $ 9.51 $ 9.51 $ 9.47 $ 9.56
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income.. 0.52 0.46 0.47 0.56 0.56 0.50 0.49 0.59
Net realized and
unrealized gains
(losses) from
investments........... 0.32 0.32 0.31 0.31 0.17 0.16 0.17 0.17
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.84 0.78 0.78 0.87 0.73 0.66 0.66 0.76
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.53) (0.47) (0.47) (0.56) (0.56) (0.48) (0.48) (0.59)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions.... (0.53) (0.47) (0.47) (0.56) (0.56) (0.48) (0.48) (0.59)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.99 $10.00 $ 9.96 $ 10.04 $ 9.68 $ 9.69 $ 9.65 $ 9.73
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 8.83%(a) 8.18%(a) 8.11%(a) 9.15%(a) 7.92% 7.09% 7.15% 8.20%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $16,669 $6,423 $ 595 $481,998 $19,760 $5,967 $ 508 $492,102
Ratio of expenses to
average net assets..... 1.19%(b) 1.94%(b) 1.94%(b) 0.94%(b) 1.19% 1.94% 1.94% 0.94%
Ratio of net investment
income to average net
assets................. 5.81%(b) 5.07%(b) 5.06%(b) 6.06%(b) 5.88% 5.15% 5.18% 6.13%
Ratio of expenses to
average net assets*.... 1.28%(b) 2.03%(b) 2.03%(b) 1.04%(b) 1.28% 2.03% 2.03% 1.03%
Ratio of net investment
income to average net
assets*................ 5.71%(b) 4.98%(b) 4.96%(b) 5.97%(b) 5.79% 5.06% 5.09% 6.04%
Portfolio turnover (c).. 545.68% 545.68% 545.68% 545.68% 827.00% 827.00% 827.00% 827.00%
</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) Not annualized.
(b) Annualized.
(c) 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>
BOND FUND, CONTINUED
------------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- ---------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF
PERIOD.......... $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.02 $ 9.29
------- ------- ------- -------- -------- -------- -------- --------
Investment
Activities
Net investment
income......... 0.57 0.50 0.50 0.59 0.58 0.52 0.22 0.61
Net realized and
unrealized
gains (losses)
from
investments.... (0.16) (0.17) (0.17) (0.16) 0.38 0.42 0.62 0.43
------- ------- ------- -------- -------- -------- -------- --------
Total from
Investment
Activities..... 0.41 0.33 0.33 0.43 0.96 0.94 0.84 1.04
------- ------- ------- -------- -------- -------- -------- --------
Distributions
Net investment
income......... (0.57) (0.50) (0.50) (0.59) (0.58) (0.52) (0.22) (0.61)
In excess of net
realized gains. -- -- -- -- (0.01) -- -- --
------- ------- ------- -------- -------- -------- -------- --------
Total
Distributions.. (0.57) (0.50) (0.50) (0.59) (0.59) (0.52) (0.22) (0.61)
------- ------- ------- -------- -------- -------- -------- --------
NET ASSET VALUE,
END OF PERIOD... $ 9.51 $ 9.51 $ 9.47 $ 9.56 $ 9.67 $ 9.68 $ 9.64 $ 9.72
======= ======= ======= ======== ======== ======== ======== ========
Total Return
(excludes sales
and redemption
charges)........ 4.27% 3.46% 3.50% 4.49% 10.85% 10.62% 8.41%(b) 11.78%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end
of period (000). $20,175 $ 4,426 $ 210 $549,336 $ 17,572 $ 1,330 $ 28 $509,189
Ratio of expenses
to average net
assets.......... 1.19% 1.94% 1.91% 0.94% 1.24% 2.03% 1.99%(c) 1.02%
Ratio of net
investment
income to
average net
assets.......... 5.71% 4.97% 5.00% 5.96% 6.32% 5.54% 5.62%(c) 6.54%
Ratio of expenses
to average net
assets*......... 1.28% 2.03% 2.03% 1.03% 1.39% 2.39% 2.26%(c) 1.14%
Ratio of net
investment
income to
average net
assets*......... 5.62% 4.88% 4.88% 5.87% 6.17% 5.18% 5.36%(c) 6.42%
Portfolio
turnover (d).... 1189.27% 1189.27% 1189.27% 1189.27% 1,010.64% 1,010.64% 1,010.64% 1,010.64%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
167
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BOND FUND, CONTINUED
------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------
1994 1993 (A)
----------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.54 $ 9.95 $ 10.53 $ 10.54 $ 10.54
------- ------ -------- ------- --------
Investment Activities
Net investment income.. 0.59 0.22 0.60 0.71 0.71
Net realized and
unrealized gains
(losses) from
investments........... (0.72) (0.70) (0.72) 0.47 0.46
------- ------ -------- ------- --------
Total from Investment
Activities............ (0.13) (0.48) (0.12) 1.18 1.17
------- ------ -------- ------- --------
Distributions
Net investment income.. (0.57) (0.21) (0.58) (0.73) (0.73)
Net realized gains..... -- -- -- (0.45) (0.45)
In excess of net
realized gains........ (0.54) -- (0.54) -- --
------- ------ -------- ------- --------
Total Distributions.... (1.11) (0.21) (1.12) (1.18) (1.18)
------- ------ -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 9.30 $ 9.26 $ 9.29 $ 10.54 $ 10.53
======= ====== ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... (1.62)% (4.84)%(c) (1.52)% 11.93% 11.84%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $18,391 $ 485 $469,903 $18,562 $442,291
Ratio of expenses to
average net assets..... 0.98% 1.89%(d) 0.88% 0.89% 0.87%
Ratio of net investment
income to average net
assets................. 5.86% 5.34%(d) 5.97% 6.47% 6.50%
Ratio of expenses to
average net assets*.... 1.27% 2.29%(d) 1.02% 1.07% 1.01%
Ratio of net investment
income to average net
assets*................ 5.57% 4.94%(d) 5.83% 6.29% 6.36%
Portfolio turnover (e).. 893.27% 893.27% 893.27% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
168
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND
-----------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
--------------------------------------- -----------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.53 $10.51 $ 10.54 $10.43 $10.39 $ 10.43
------ ------ -------- ------ ------ --------
Investment Activities
Net investment income.. 0.35 0.28 0.37 0.44 0.36 0.46
Net realized and
unrealized gains from
investments........... 0.22 0.21 0.21 0.12 0.13 0.14
------ ------ -------- ------ ------ --------
Total from Investment
Activities............. 0.57 0.49 0.58 0.56 0.49 0.60
------ ------ -------- ------ ------ --------
Distributions
Net investment income.. (0.39) (0.32) (0.41) (0.41) (0.32) (0.44)
Net realized gains..... (0.18) (0.18) (0.18) (0.05) (0.05) (0.05)
------ ------ -------- ------ ------ --------
Total Distributions.... (0.57) (0.50) (0.59) (0.46) (0.37) (0.49)
------ ------ -------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $10.53 $10.50 $ 10.53 $10.53 $10.51 $ 10.54
====== ====== ======== ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.46%(a) 4.75%(a) 5.71%(a) 5.47% 4.81% 5.89%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $9,502 $ 706 $123,856 $9,601 $ 993 $134,579
Ratio of expenses to
average net assets..... 1.02%(b) 1.77%(b) 0.77%(b) 1.06% 1.81% 0.81%
Ratio of net investment
income to average net
assets................. 3.64%(b) 2.89%(b) 3.89%(b) 4.19% 3.43% 4.41%
Ratio of expenses to
average net assets*.... 1.31%(b) 2.06%(b) 1.07%(b) 1.35% 2.10% 1.10%
Ratio of net investment
income to average net
assets*................ 3.34%(b) 2.59%(b) 3.60%(b) 3.90% 3.14% 4.12%
Portfolio turnover (c).. 85.56% 85.56% 85.56% 48.83% 48.83% 48.83%
</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) Not annualized.
(b) Annualized.
(c) 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.
169
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
-----------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------------------------------
1996 1995
----------------------------------- -----------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A)(B) INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $10.39 $10.36 $ 10.39 $ 10.29 $10.26 $ 9.88 $ 10.29
------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.41 0.33 0.43 0.41 0.33 (0.03) 0.46
Net realized and
unrealized gains
(losses) from
investments........... 0.03 0.03 0.04 0.27 0.27 0.65 0.27
------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.44 0.36 0.47 0.68 0.60 0.62 0.73
------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.40) (0.33) (0.43) (0.41) (0.33) (0.14) (0.46)
In excess of net
realized gains ....... -- -- -- (0.17) (0.17) (0.16) (0.17)
------ ------ -------- ------- ------ ------ --------
Total Distributions.... (0.40) (0.33) (0.43) (0.58) (0.50) (0.30) (0.63)
------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $10.43 $10.39 $ 10.43 $ 10.39 $10.36 $10.20 $ 10.39
====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 4.29% 3.48% 4.55% 7.02% 6.17% 3.47%(c) 7.25%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $7,835 $ 735 $132,527 $11,378 $ 447 -- $134,784
Ratio of expenses to
average net assets..... 1.05% 1.80% 0.80% 1.02% 1.80% 0.71%(d) 0.80%
Ratio of net investment
income (loss) to
average net assets..... 3.85% 3.11% 4.10% 4.00% 3.22% (0.54)%(d) 4.21%
Ratio of expenses to
average net assets*.... 1.34% 2.09% 1.09% 1.33% 2.33% 0.71%(d) 1.08%
Ratio of net investment
income (loss) to
average net assets*.... 3.56% 2.82% 3.81% 3.68% 2.68% (0.54)%(d) 3.93%
Portfolio turnover (e).. 47.46% 47.46% 47.46% 35.15% 35.15% 35.15% 35.15%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) There was only one share outstanding for the Investor C shares at June 30,
1995.
(c) 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.
(d) Annualized.
(e) 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.
170
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MUNICIPAL BOND FUND, CONTINUED
------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------
1994 1993 (A)
---------------------------------------- -------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- --------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.92 $10.76 $ 10.92 $10.58 $ 10.58
------- ------ -------- ------ --------
Investment Activities
Net investment income
(loss)................ 0.40 0.13 0.41 0.49 0.49
Net realized and
unrealized gains
(losses) from
investments........... (0.31) (0.50) (0.31) 0.48 0.48
------- ------ -------- ------ --------
Total from Investment
Activities............ 0.09 (0.37) 0.10 0.97 0.97
------- ------ -------- ------ --------
Distributions
Net investment income.. (0.39) (0.13) (0.40) (0.53) (0.53)
Net realized gains..... (0.21) -- (0.21) (0.10) (0.10)
In excess of net
realized gains ....... (0.12) -- (0.12) -- --
------- ------ -------- ------ --------
Total Distributions.... (0.72) (0.13) (0.73) (0.63) (0.63)
------- ------ -------- ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 10.29 $10.26 $ 10.29 $10.92 $ 10.92
======= ====== ======== ====== ========
Total Return (excludes
sales and redemption
charges)............... 0.71% (3.41)%(c) 0.81% 9.46% 9.48%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $13,123 $ 359 $147,687 $9,333 $146,302
Ratio of expenses to
average net assets..... 0.87% 1.80%(d) 0.77% 0.76% 0.73%
Ratio of net investment
income (loss) to
average net assets..... 3.72% 2.88%(d) 3.83% 4.56% 4.61%
Ratio of expenses to
average net assets*.... 1.32% 2.37%(d) 1.06% 1.09% 1.02%
Ratio of net investment
income (loss) to
average net assets*.... 3.27% 2.31%(d) 3.53% 4.23% 4.31%
Portfolio turnover (e).. 44.39% 44.39% 44.39% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
171
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND
------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
---------------------------------------- -----------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.89 $10.90 $ 10.89 $ 10.76 $10.76 $ 10.77
------- ------ -------- ------- ------ --------
Investment Activities
Net investment income.. 0.42 0.34 0.44 0.49 0.41 0.51
Net realized and
unrealized gains from
investments........... 0.23 0.23 0.23 0.14 0.13 0.14
------- ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.65 0.57 0.67 0.63 0.54 0.65
------- ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.45) (0.37) (0.47) (0.46) (0.36) (0.49)
Net realized gains..... (0.03) (0.03) (0.03) (0.04) (0.04) (0.04)
------- ------ -------- ------- ------ --------
Total Distributions.... (0.48) (0.40) (0.50) (0.50) (0.40) (0.53)
------- ------ -------- ------- ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 11.06 $11.07 $ 11.06 $ 10.89 $10.90 $ 10.89
======= ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.96%(a) 5.32%(a) 6.30%(a) 5.89% 5.05% 6.11%
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of
period (000)........... $38,536 $3,983 $206,246 $38,302 $3,503 $194,950
Ratio of expenses to
average net assets..... 0.99%(b) 1.74%(b) 0.74%(b) 1.01% 1.76% 0.76%
Ratio of net investment
income to average net
assets................. 4.09%(b) 3.34%(b) 4.34%(b) 4.48% 3.73% 4.73%
Ratio of expenses to
average net assets*.... 1.28%(b) 2.03%(b) 1.03%(b) 1.30% 2.05% 1.05%
Ratio of net investment
income to average net
assets*................ 3.80%(b) 3.05%(b) 4.05%(b) 4.19% 3.44% 4.44%
Portfolio turnover (c).. 26.24% 26.24% 26.24% 28.48% 28.48% 28.48%
</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) Not annualized.
(b) Annualized.
(c) 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>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND, CONTINUED
-----------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------------------------------
1996 1995
----------------------------------- -----------------------------------------------------
INVESTOR A INVESTOR B INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A)(B) INSTITUTIONAL
---------- ---------- ------------- ---------- ---------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.75 $10.75 $ 10.76 $ 10.53 $10.52 $10.11 $ 10.53
------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.47 0.40 0.50 0.48 0.40 (0.02) 0.50
Net realized and
unrealized gains
(losses) from
investments........... 0.04 0.04 0.04 0.23 0.24 0.62 0.25
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 0.51 0.44 0.54 0.71 0.64 0.60 0.75
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income . (0.47) (0.40) (0.50) (0.48) (0.40) -- (0.50)
Net realized gains..... (0.03) (0.03) (0.03) (0.01) (0.01) (0.17) (0.02)
------- ------ -------- ------- ------ ------ --------
Total Distributions.... (0.50) (0.43) (0.53) (0.49) (0.41) (0.17) (0.52)
------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 10.76 $10.76 $ 10.77 $ 10.75 $10.75 $10.54 $ 10.76
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 4.87% 4.13% 5.12% 6.99% 6.28% 3.39%(c) 7.33%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $36,681 $3,565 $185,191 $37,874 $2,270 -- $176,068
Ratio of expenses to
average net assets..... 1.02% 1.77% 0.77% 1.00% 1.78% 0.48%(d) 0.78%
Ratio of net investment
income (loss) to
average net assets..... 4.32% 3.57% 4.57% 4.57% 3.80% (0.32)%(d) 4.79%
Ratio of expenses to
average net assets*.... 1.31% 2.06% 1.06% 1.32% 2.32% 0.48%(d) 1.07%
Ratio of net investment
income (loss) to
average net assets*.... 4.03% 3.28% 4.28% 4.25% 3.25% (0.32)%(d) 4.50%
Portfolio turnover (e).. 27.66% 27.66% 27.66% 26.06% 26.06% 26.06% 26.06%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) There was only one share outstanding for the Investor C shares at June 30,
1995.
(c) 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.
(d) Annualized.
(e) 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.
173
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
MICHIGAN MUNICIPAL BOND FUND, CONTINUED
-----------------------------------------------------------------
YEAR ENDED JUNE 30,
-----------------------------------------------------------------
1994 1993 (A)
---------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 10.97 $11.09 $ 10.97 $ 10.58 $ 10.58
------- ------ -------- ------- --------
Investment Activities
Net investment income
(loss)................ 0.47 0.16 0.48 0.50 0.50
Net realized and
unrealized gains
(losses) from
investments........... (0.36) (0.57) (0.36) 0.47 0.47
------- ------ -------- ------- --------
Total from Investment
Activities............. 0.11 (0.41) 0.12 0.97 0.97
------- ------ -------- ------- --------
Distributions
Net investment income . (0.45) (0.16) (0.46) (0.54) (0.54)
Net realized gains..... (0.01) -- (0.01) (0.04) (0.04)
In excess of net
realized gains ....... (0.09) -- (0.09) -- --
------- ------ -------- ------- --------
Total Distributions.... (0.55) (0.16) (0.56) (0.58) (0.58)
------- ------ -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 10.53 $10.52 $ 10.53 $ 10.97 $ 10.97
======= ====== ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... 0.92% (3.69)%(c) 1.02% 9.40% 9.42%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $42,204 $1,302 $181,051 $32,778 $165,414
Ratio of expenses to
average net assets..... 0.85% 1.77%(d) 0.75% 0.78% 0.76%
Ratio of net investment
income (loss) to
average net assets..... 4.25% 3.51%(d) 4.35% 4.67% 4.70%
Ratio of expenses to
average net assets*.... 1.29% 2.32%(d) 1.04% 1.12% 1.05%
Ratio of net investment
income (loss) to
average net assets*.... 3.81% 2.97%(d) 4.06% 4.33% 4.41%
Portfolio turnover (e).. 6.69% 6.69% 6.69% 35.81% 35.81%
</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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
174
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
CONSERVATIVE ALLOCATION FUND
--------------------------------
ELEVEN MONTHS DECEMBER 30, 1996
ENDED TO
MAY 31, 1998 JUNE 30, 1997 (A)
------------- -----------------
INSTITUTIONAL INSTITUTIONAL
------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD......... $ 10.36 $ 10.00
------- -------
Investment Activities
Net investment income....................... 0.35 0.14
Net realized and unrealized gains from in-
vestments.................................. 0.79 0.34
------- -------
Total from Investment Activities............ 1.14 0.48
------- -------
Distributions
Net investment income....................... (0.35) (0.12)
Net realized gains.......................... (0.07) --
------- -------
Total Distributions......................... (0.42) (0.12)
------- -------
NET ASSET VALUE, END OF PERIOD............... $ 11.08 $ 10.36
======= =======
Total Return (excludes sales and redemption
charges).................................... 11.18%(b) 4.87%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............ $17,031 $10,287
Ratio of expenses to average net assets...... 1.07%(c) 1.64%(c)
Ratio of net investment income (loss) to av-
erage net assets............................ 3.69%(c) 3.12%(c)
Ratio of expenses to average net assets*..... 1.37%(c) 1.94%(c)
Ratio of net investment income (loss) to av-
erage net assets*........................... 3.39%(c) 2.82%(c)
Portfolio turnover........................... 99.41% 62.11%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
175
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND
------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
----------------------------------------------------- ----------------------------------------------
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.... $ 13.00 $13.00 $12.92 $ 12.99 $ 13.37 $13.36 $13.28 $ 13.37
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income.. 0.29 0.19 0.18 0.32 0.32 0.21 0.21 0.35
Net realized and
unrealized gains from
investments and
foreign currencies.... 1.21 1.21 1.21 1.20 1.12 1.13 1.14 1.12
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 1.50 1.40 1.39 1.52 1.44 1.34 1.35 1.47
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.32) (0.23) (0.23) (0.35) (0.33) (0.22) (0.23) (0.37)
Net realized gains..... (0.36) (0.36) (0.36) (0.36) (1.48) (1.48) (1.48) (1.48)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions.... (0.68) (0.59) (0.59) (0.71) (1.81) (1.70) (1.71) (1.85)
------- ------ ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END OF
PERIOD................. $ 13.82 $13.81 $13.72 $ 13.80 $ 13.00 $13.00 $12.92 $ 12.99
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 11.87%(a) 11.05%(a) 11.04%(a) 12.06%(a) 11.61% 10.82% 10.90% 11.86%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $19,404 $7,988 $ 927 $262,533 $18,826 $6,299 $ 795 $245,347
Ratio of expenses to
average net assets..... 1.36%(b) 2.11%(b) 2.11%(b) 1.12%(b) 1.36% 2.11% 2.11% 1.10%
Ratio of net investment
income to average net
assets................. 2.32%(b) 1.57%(b) 1.56%(b) 2.57%(b) 2.47% 1.73% 1.75% 2.77%
Ratio of expenses to
average net assets*.... 1.62%(b) 2.37%(b) 2.37%(b) 1.37%(b) 1.61% 2.36% 2.36% 1.36%
Ratio of net investment
income to average net
assets*................ 2.07%(b) 1.32%(b) 1.31%(b) 2.32%(b) 2.22% 1.48% 1.50% 2.51%
Portfolio turnover (c).. 117.80% 117.80% 117.80% 117.80% 425.05% 425.05% 425.05% 425.05%
</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) Not annualized.
(b) Annualized.
(c) 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.
176
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND, CONTINUED
-------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 12.19 $12.18 $12.12 $ 12.19 $ 10.67 $10.67 $11.13 $ 10.67
------- ------ ------ -------- ------- ------ ------ -------
Investment Activities
Net investment
income.............. 0.32 0.23 0.24 0.36 0.28 0.20 0.09 0.31
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.. 1.74 1.74 1.71 1.74 1.69 1.67 1.16 1.68
------- ------ ------ -------- ------- ------ ------ -------
Total from Investment
Activities........... 2.06 1.97 1.95 2.10 1.97 1.87 1.25 1.99
------- ------ ------ -------- ------- ------ ------ -------
Distributions
Net investment
income.............. (0.31) (0.22) (0.22) (0.35) (0.29) (0.20) (0.10) (0.31)
Net realized gains... (0.57) (0.57) (0.57) (0.57) (0.01) (0.06) -- (0.03)
In excess of net
realized gains...... -- -- -- -- (0.15) (0.10) (0.16) (0.13)
------- ------ ------ -------- ------- ------ ------ -------
Total Distributions.. (0.88) (0.79) (0.79) (0.92) (0.45) (0.36) (0.26) (0.47)
------- ------ ------ -------- ------- ------ ------ -------
NET ASSET VALUE, END
OF PERIOD............ $ 13.37 $13.36 $13.28 $ 13.37 $ 12.19 $12.18 $12.12 $ 12.19
======= ====== ====== ======== ======= ====== ====== =======
Total Return (excludes
sales and redemption
charges)............. 17.51% 16.71% 16.61% 17.81% 18.96% 17.96% 17.53%(b) 19.22%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $17,097 $4,278 $ 362 $113,493 $12,849 $1,291 $ 114 $89,294
Ratio of expenses to
average net assets... 1.41% 2.16% 2.16% 1.16% 1.47% 2.25% 2.16%(c) 1.25%
Ratio of net
investment income to
average net assets... 2.37% 1.64% 1.65% 2.62% 2.54% 1.74% 1.65%(c) 2.75%
Ratio of expenses to
average net assets*.. 1.66% 2.45% 2.41% 1.41% 1.78% 2.77% 2.68%(c) 1.52%
Ratio of net
investment income to
average net assets*.. 2.12% 1.35% 1.40% 2.37% 2.23% 1.22% 1.13%(c) 2.47%
Portfolio turnover
(d).................. 437.90% 437.90% 437.90% 437.90% 250.66% 250.66% 250.66% 250.66%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
177
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
BALANCED ALLOCATION FUND, CONTINUED
------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------
1994 1993 (A)
----------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 11.09 $11.71 $ 11.08 $ 9.68 $ 9.68
------- ------ ------- ------ -------
Investment Activities
Net investment income.. 0.26 0.10 0.27 0.28 0.28
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.... (0.43) (1.05) (0.41) 1.42 1.41
------- ------ ------- ------ -------
Total from Investment
Activities............. (0.17) (0.95) (0.14) 1.70 1.69
------- ------ ------- ------ -------
Distributions
Net investment income.. (0.25) (0.09) (0.27) (0.29) (0.29)
------- ------ ------- ------ -------
Total Distributions.... (0.25) (0.09) (0.27) (0.29) (0.29)
------- ------ ------- ------ -------
NET ASSET VALUE, END OF
PERIOD................. $ 10.67 $10.67 $ 10.67 $11.09 $ 11.08
======= ====== ======= ====== =======
Total Return (excludes
sales and redemption
charges)............... (1.63)% (8.16)%(c) (1.44)% 17.74% 17.66%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $11,901 $ 744 $71,427 $6,115 $42,318
Ratio of expenses to
average net assets..... 1.18% 2.05%(d) 1.09% 1.18% 1.15%
Ratio of net investment
income to average net
assets................. 2.38% 1.94%(d) 2.49% 2.66% 2.70%
Ratio of expenses to
average net assets*.... 1.63% 2.61%(d) 1.39% 1.53% 1.46%
Ratio of net investment
income to average net
assets*................ 1.93% 1.38%(d) 2.18% 2.31% 2.40%
Portfolio turnover (e).. 192.39% 192.39% 192.39% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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>
AGGRESSIVE ALLOCATION FUND
--------------------------------
ELEVEN MONTHS DECEMBER 30, 1996
ENDED TO
MAY 31, 1998 JUNE 30, 1997 (A)
------------- -----------------
INSTITUTIONAL INSTITUTIONAL
------------- -----------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.......... $ 10.57 $ 10.00
------- -------
Investment Activities
Net investment income ....................... 0.12 0.07
Net realized and unrealized gains from in-
vestments and foreign currencies............ 1.19 0.56
------- -------
Total from Investment Activities............. 1.31 0.63
------- -------
Distributions
Net investment income........................ (0.13) (0.06)
------- -------
Total Distributions.......................... (0.13) (0.06)
------- -------
NET ASSET VALUE, END OF PERIOD................ $ 11.75 $ 10.57
======= =======
Total Return (excludes sales and redemption
charges)..................................... 12.45%(b) 6.38%(b)
RATIOS/SUPPLEMENTARY DATA:
Net Assets at end of period (000)............. $33,816 $39,043
Ratio of expenses to average net assets....... 1.30%(c) 1.32%(c)
Ratio of net investment income (loss) to aver-
age net assets............................... 1.11%(c) 1.61%(c)
Ratio of expenses to average net assets*...... 1.45%(c) 1.47%(c)
Ratio of net investment income (loss) to aver-
age net assets*.............................. 0.96%(c) 1.46%(c)
Portfolio turnover............................ 76.47% 44.68%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
179
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND
-------------------------------------------------------------------------------------------------------
ELEVEN MONTHS ENDED MAY 31, 1998 YEAR ENDED JUNE 30, 1997
------------------------------------------------------ ----------------------------------------------
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... $19.20 $19.14 $19.23 $19.13 $ 17.31 $ 17.27 $17.36 $ 17.30
-------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income. 0.25 0.11 0.11 0.29 0.29 0.16 0.15 0.34
Net realized and
unrealized gains
(losses) from
investments.......... 2.72 2.71 2.72 2.70 3.57 3.57 3.58 3.51
-------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities........... 2.97 2.82 2.83 2.99 3.86 3.73 3.73 3.85
-------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net investment income. (0.21) (0.10) (0.09) (0.25) (0.28) (0.17) (0.17) (0.33)
Net realized gains.... (3.18) (3.18) (3.18) (3.18) (1.69) (1.69) (1.69) (1.69)
-------- ------- ------ -------- ------- ------- ------ --------
Total Distributions... (3.39) (3.28) (3.27) (3.43) (1.97) (1.86) (1.86) (2.02)
-------- ------- ------ -------- ------- ------- ------ --------
NET ASSET VALUE, END OF
PERIOD................ $18.78 $18.68 $18.79 $18.69 $ 19.20 $ 19.14 $19.23 $ 19.13
======== ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges).............. 17.08%(a) 16.28%(a) 16.22%(a) 17.31%(a) 23.81% 22.96% 22.86% 23.80%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000).......... $104,503 $27,767 $1,094 $281,395 $99,423 $21,038 $ 778 $315,878
Ratio of expenses to
average net assets.... 1.58%(b) 2.33%(b) 2.33%(b) 1.33%(b) 1.58% 2.33% 2.33% 1.33%
Ratio of net investment
income to average net
assets................ 1.39%(b) 0.64%(b) 0.63%(b) 1.65%(b) 1.62% 0.88% 0.88% 1.89%
Ratio of expenses to
average net assets*... 1.58%(b) 2.33%(b) 2.33%(b) 1.33%(b) 1.58% 2.33% 2.33% 1.33%
Ratio of net investment
income (loss) to
average net assets*... 1.39%(b) 0.64%(b) 0.63%(b) 1.65%(b) 1.62% 0.88% 0.88% 1.89%
Portfolio turnover (c). 18.62% 18.62% 18.62% 18.62% 20.14% 20.14% 20.14% 20.14%
</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) Not annualized.
(b) Annualized.
(c) 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.
180
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND, CONTINUED
-------------------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,
-------------------------------------------------------------------------------------------------
1996 1995
---------------------------------------------- --------------------------------------------------
INVESTOR A INVESTOR B INVESTOR C INSTITUTIONAL INVESTOR A INVESTOR B INVESTOR C (A) INSTITUTIONAL
---------- ---------- ---------- ------------- ---------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.. $ 14.49 $ 14.47 $14.54 $ 14.49 $ 13.50 $13.49 $13.38 $ 13.50
------- ------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment
income.............. 0.30 0.19 0.19 0.34 0.36 0.26 0.11 0.39
Net realized and
unrealized gains
(losses) from
investments......... 3.27 3.25 3.27 3.26 1.00 0.99 1.17 1.00
------- ------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities.......... 3.57 3.44 3.46 3.60 1.36 1.25 1.28 1.39
------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net investment
income.............. (0.30) (0.19) (0.19) (0.34) (0.36) (0.26) (0.11) (0.39)
In excess of net
investment income... -- -- -- -- (0.01) (0.01) (0.01) (0.01)
Net realized gains... (0.45) (0.45) (0.45) (0.45) -- -- -- --
------- ------- ------ -------- ------- ------ ------ --------
Total Distributions.. (0.75) (0.64) (0.64) (0.79) (0.37) (0.27) (0.12) (0.40)
------- ------- ------ -------- ------- ------ ------ --------
NET ASSET VALUE, END
OF PERIOD............ $ 17.31 $ 17.27 $17.36 $ 17.30 $ 14.49 $14.47 $14.54 $ 14.49
======= ======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............. 25.05% 24.11% 24.17% 25.30% 10.32% 9.41% 9.71%(b) 10.55%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)......... $82,396 $12,590 $ 164 $337,318 $71,063 $7,131 $ 25 $346,164
Ratio of expenses to
average net assets... 1.57% 2.32% 2.32% 1.32% 1.54% 2.32% 2.30%(c) 1.32%
Ratio of net
investment income to
average net assets... 1.86% 1.11% 1.11% 2.11% 2.65% 1.86% 1.88%(c) 2.86%
Ratio of expenses to
average net assets*.. 1.57% 2.32% 2.32% 1.32% 1.57% 2.57% 2.55%(c) 1.32%
Ratio of net
investment income to
average net assets*.. 1.86% 1.11% 1.11% 2.11% 2.61% 1.61% 1.62%(c) 2.86%
Portfolio turnover
(d).................. 40.75% 40.75% 40.75% 40.75% 77.70% 77.70% 77.70% 77.70%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) 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.
(c) Annualized.
(d) 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.
181
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
EQUITY INCOME FUND, CONTINUED
------------------------------------------------------------------
YEAR ENDED JUNE 30,
------------------------------------------------------------------
1994 1993(A)
----------------------------------------- ------------------------
INVESTOR A INVESTOR B (B) INSTITUTIONAL INVESTOR A INSTITUTIONAL
---------- -------------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.... $ 14.69 $14.92 $ 14.69 $ 13.14 $ 13.14
------- ------ -------- ------- --------
Investment Activities
Net investment income.. 0.37 0.13 0.39 0.45 0.45
Net realized and
unrealized gains
(losses) from
investments........... (0.56) (1.43) (0.56) 1.69 1.69
------- ------ -------- ------- --------
Total from Investment
Activities............ (0.19) (1.30) (0.17) 2.14 2.14
------- ------ -------- ------- --------
Distributions
Net investment income.. (0.37) (0.13) (0.39) (0.45) (0.45)
Net realized gains..... (0.24) -- (0.24) (0.14) (0.14)
In excess of net
realized gains........ (0.39) -- (0.39) -- --
------- ------ -------- ------- --------
Total Distributions.... (1.00) (0.13) (1.02) (0.59) (0.59)
------- ------ -------- ------- --------
NET ASSET VALUE, END OF
PERIOD................. $ 13.50 $13.49 $ 13.50 $ 14.69 $ 14.69
======= ====== ======== ======= ========
Total Return (excludes
sales and redemption
charges)............... (1.63)% (8.76)%(c) (1.53)% 16.71% 16.73%
RATIOS/SUPPLEMENTARY
DATA:
Net Assets at end of
period (000)........... $76,108 $3,836 $355,538 $50,000 $384,240
Ratio of expenses to
average net assets..... 1.40% 2.33%(d) 1.30% 1.29% 1.26%
Ratio of net investment
income to average net
assets................. 2.56% 1.87%(d) 2.64% 3.24% 3.28%
Ratio of expenses to
average net assets*.... 1.55% 2.59%(d) 1.30% 1.36% 1.28%
Ratio of net investment
income to average net
assets*................ 2.41% 1.61%(d) 2.64% 3.17% 3.25%
Portfolio turnover (e).. 69.35% 69.35% 69.35% 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) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) 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.
182
<PAGE>
Parkstone offers investors:
. Expert money management
. Low initial investment
. An automatic investment program
. The opportunity to change investments when personal needs change
. 24-hour access to information about investments through FUNDATA at
1-800-355-4555
The Parkstone Mutual Funds
Growth Funds
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
Growth and Income Funds
Parkstone Conservative Allocation Fund
Parkstone Balanced Allocation Fund
Parkstone Aggressive Allocation Fund
Parkstone Equity Income Fund
Income Funds
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
Tax-Free Income Funds
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
---------
Money Market Funds PARKSTONE
---------
Parkstone Prime Obligations Fund MUTUAL FUNDS
Parkstone U.S. Government Obligations Fund
Parkstone Tax-Free Fund
Parkstone Treasury Fund
----------------------------
----------- Bulk Rate
----------- U.S. Postage
----------- PAID
----------- Columbus, Ohio
----------- Permit No. 2443
----------------------------
