<PAGE>
[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
[ARTWORK APPEARS HERE]
November 30, 1998
SEMI-ANNUAL REPORT
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Table of Contents
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The Parkstone Group of Funds November 30, 1998
<TABLE>
<S> <C>
Message From Your Chairman.................................................. 2
Message From Your Investment Adviser........................................ 3
Portfolio Performance Discussion............................................ 5
Statements of Assets and Liabilities........................................ 21
Statements of Operations.................................................... 26
Statements of Changes in Net Assets......................................... 31
Statements of Cash Flows.................................................... 40
Schedules of Portfolio Investments.......................................... 43
Notes to Financial Statements............................................... 95
Financial Highlights........................................................ 121
</TABLE>
1
<PAGE>
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A Message From The Chairman
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The Parkstone Group of Funds November 30, 1998
Dear Shareholders:
I am pleased to be writing to you on behalf of your new Board of Trustees who
are listed on the inside back cover of this report. This report covers
performance of each of the Parkstone Group of Funds during the six months ended
November 30, 1998.
Volatility in the Marketplace
Over the course of the last six months, investors experienced a true adventure
on Wall Street that served as a great test for individual risk tolerances.
During this period, the fixed-income and equity markets experienced extreme
levels of volatility. Despite the challenges in the financial markets, the
Parkstone Funds improved their one-year relative performance ratings in almost
every case. The key to this success has been the experience of our investment
portfolio management teams.
National City Investment Management Company Named Adviser
Effective August 5, 1998, National City Investment Management Company (IMC) was
named as adviser to the Parkstone Funds. In addition, this group is also
adviser to the Armada Funds. This team uses a disciplined style-specific
investment approach, focusing on diversification and risk management. For more
information on IMC and its strategies, you can refer to the winter edition of
the TIP newsletter enclosed with your year-end statement.
Diversification Is Critical
The Parkstone and Armada fund families in total offer shareholders over 35
different choices to achieve a well diversified portfolio. Our experienced
managers understand the financial markets and the potential impact on their
investment styles. While investment decisions are always challenging and never
guaranteed, the benefits of such experience are most apparent during periods of
volatility. If you'd like to know more about any of the Parkstone Funds, or
Armada Funds, please call us at 1-800-451-8377, or 1-888-ARMADA5, respectively.
Best wishes for a happy, healthy and prosperous 1999, and thank you for your
continued investment in the Parkstone Funds.
Sincerely,
/s/ Robert D. Neary
Robert D. Neary
Chairman
[Parkstone Logo Appears Here]
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.
2
<PAGE>
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Message From Your Investment Adviser
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The Parkstone Group of Funds November 30, 1998
Dear Shareholders:
Very simply, during the six months ended November 30, 1998, the financial
markets were more turbulent than they have been in decades. As the period
opened, aftershocks from the turmoil in Asia reached our shores. At home, signs
appeared that our economy's growth was moderating . After years of strong and
stable growth, investors were unnerved. Anxiety mounted. Then, in August,
evidence that the Russian economy was in far worse shape than previously
suspected sent investors' anxiety soaring. While the fate of Russia has, in
fact, only minimal impact on the global economy, the psychological impact was
far-reaching. These factors, combined with continuing weakness in Asia,
instability in Latin America and the potential implosion of several highly
leveraged hedge funds, had a powerful effect on the markets. Investors ran for
cover. Liquidity vanished. Markets worldwide dropped significantly--and no
region was spared. Perceived to be the safest of safe havens, U.S. Treasury
securities surged. In markets abroad and here at home, virtually all other
fixed-income and equity securities suffered to some degree.
A Virtual Correction?
Many of the situations that triggered the decline had eased somewhat by late
September. In Southeast Asia, governments were making progress toward
structural, economic reforms. In an effort to pull their economy out of the
doldrums, the Japanese were moving toward real banking reform. In Latin
America, the Brazilians were moving toward an austerity budget with the help of
the IMF, to be funded by the United States. At home, a group of investment
banks, with the help of monetary authorities, provided Long Term Capital
Management, a multi-billion-dollar hedge fund, with the capital to gradually
unwind their positions. Finally, and perhaps most importantly, citing a desire
to cushion U.S. economic growth against weakness in foreign economies and
recognizing that financial conditions had become less accommodating to growth
domestically, the Federal Reserve Board made the first of three cuts in short-
term interest rates over the course of the next two months.
With these indications that problems were being addressed, confidence began
returning. Liquidity began to trickle back into the marketplace. Moreover, as
the environment eased, investors noticed signs of the U.S. economy's underlying
strength and impressive resilience. The rate of real growth in the second
quarter--despite a reduction in inventories and a large decrease in net
exports--was 1.8%. The rate of growth in the third quarter was 3.9%. "Real
final sales" (GDP less inventories) were no longer increasing at the phenomenal
pace seen in the past, but they were still advancing. Business investment was
also increasing, just not at the torrid pace of the past year. In short, our
economy was still growing. Globally, progress was being made.
A Virtual Recovery?
Seeing this, market sentiment grew more positive. By October, stocks were
recovering, and the move upward was a powerful one. This time, too, the advance
was not as narrow as it had been earlier in the year. Smaller and mid-
capitalization issues received some long-overdue attention. By the period's
end, many of the biggest and best-known names had regained most, if not all, of
the ground lost, and any smaller and mid-cap stocks were well on their way.
Clearly, for the moment at least, stock investors seem willing to look beyond
whatever problems remain unresolved at home or abroad.
While the environment also improved in the fixed-income markets, investors were
more wary, and the rebound was slower. Sentiment still favored high- quality,
intermediate-term securities. Nonetheless, in the closing weeks of the period,
several large corporate issues were brought to market and were well supported.
Clearly, confidence once again reigned in the stock market and was on the
comeback in the fixed-income arena as the period closed.
3
<PAGE>
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Message From Your Investment Adviser, continued
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The Parkstone Group of Funds November 30, 1998
A Realistic Approach
Much of the optimism the recovery indicates is justified. Historically, the
type of low-interest-rate, low-inflation, stable-growth environment we see
ahead has proved to be very favorable for the financial markets. In the short-
term, however, there is reason for caution. The problems that caused such great
concern in the summer are being addressed and have been reduced in severity,
but none have been resolved. Abroad, Russian, Brazilian and Japanese economies
are still weak. Singapore recently reported a large decline in its GDP. At
home, we see a deceleration in the growth of our economy. While a deceleration
is very different from a decline, corporate profits are expected to drop off in
the coming year.
Against this backdrop, the sheer strength and speed of the recovery in the
equities market has been surprising. While the economic news and the financial
environment have improved significantly, we are not out of the woods yet--and
the markets may be volatile in the months ahead as we work our way out. Much
depends on the willingness of governments abroad to carry out promised reforms.
Very simply, investors worldwide will be watching, closely, the speed and depth
of the follow-through by those governments.
Sincerely,
/S/ Mark R. Kummerer
Mark R. Kummerer
Director of Fixed Income
National City Investment Management Company
4
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Portfolio Performance Discussion
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The Parkstone Group of Funds November 30, 1998
Small Capitalization Fund
The six-month period ended November 30, 1998, was an extremely volatile one for
small-cap investors. Throughout the summer, aftershocks from the financial
quakes that rocked Asia reached our market. Concerns about the stability of the
Russian economy and our own domestic political situation added even more
uncertainty to the mix. As a result, investors fled to quality--and all but the
most defensive stocks saw declines in August and September. Once again, smaller
cap issues, particularly smaller cap growth issues, took the hardest hits.
But, by October, investors' fears--while not completely gone--had eased. Small-
cap stocks, particularly small-cap growth stocks, which were at their lowest
valuations on a relative basis in decades, stormed back and climbed steadily
upward during October and November. Moreover, just as they had experienced the
sharpest declines, they made some of the largest gains. But, despite these
substantial gains, there was still a way to go before regaining all the ground
lost earlier in the year. As a result, for the six months ended November 30,
1998, the Fund posted a return of -14.15% (Investor A Shares without sales
charge)* compared to its benchmark, the Russell 2000 Stock Index,/1/ which
returned -12.35% for the period.
Growth in a Slowing Economy
Going forward, we're optimistic about the prospects for small-cap stocks in
general and the Fund's holdings in particular. Despite the recent rally,
valuations in the sector are still attractive--in fact, some 40% of NASDAQ
issues have yet to regain their '96 highs. In addition, with their lower
valuations and higher growth rates than the larger cap issues, these stocks are
likely to become more and more attractive to investors as our economy slows in
the coming months.
<TABLE>
<CAPTION>
Average Annual Total Return As of
November 30, 1998
1 Year 5 Years 10 Years
- ------------------------------------------
<S> <C> <C> <C>
Investor A* -19.67% 8.03% 14.46%
- ------------------------------------------
Institutional -14.76% 9.47% 15.26%
- ------------------------------------------
* Reflects 5.50% Sales Charge
</TABLE>
Given the rather uncertain environment, however, the marketplace may continue to
be rather volatile. Consequently, in an effort to minimize the impact of any
such swings on the Fund, we've capitalized on a number of attractive situations
and increased the number of names in the portfolio in recent weeks. At the same
time, however, we've subjected all stocks considered to increased scrutiny--
particularly with regard to valuation. As a result, while the road just ahead
may be bumpy, we believe the Fund is well positioned for the ride.
<TABLE>
<CAPTION>
Average Annual Total Return As of
November 30, 1998
- ----------------------------------------
Since
1 Year Inception
(2/4/94)
- ----------------------------------------
<S> <C> <C> <C>
Investor B** -19.54% 8.17%
- ----------------------------------------
** Reflects Applicable Contingent
Deferred Sales Charge
</TABLE>
As of November 30, 1998, the top five holdings in the Fund's portfolio were
Serologicals Corp. (2.6% of the Fund's net assets), Annuity & Life (2.5%),
Pacific Gateway (2.4%), NCO Group, Inc. (2.2%) and Visio Corp. (2.1%).**
- -------
Small-capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure and, historically, their
stocks have experienced a greater degree of market volatility than stocks on
average.
* The total return, with the maximum 5.50% sales charge, was -18.88% for the
period.
** The Portfolio's composition is subject to change.
/1/The Small Capitalization 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.
5
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds November 30, 1998
Mid Capitalization Fund
The six months ended November 30, 1998, were quite volatile as investors were
unsettled by events in Asia, Russia and Latin America. From its peak on July 20
through the bottom on October 8, the S&P MidCap 400 Index/1/ fell 27%. While
all stocks suffered, the performance of small- and mid-cap stocks reflected
this anxiety to a greater degree. Then, in early fall, action by the Fed to
ease interest rates, Japanese banking reform, and IMF aid to Latin America
calmed investors' fears.
Equities rebounded strongly in October and November. Moreover, this time, the
advance was more broad based--and mid-cap stocks bounced back strongly. Many of
the Fund's holdings performed extremely well.
Brightpoint rose 95% in the eight weeks from the end of September to the
period's close. Among other stand outs were Sanmina Corp. (2.2% of the Fund's
net assets), Office Depot (2.4%) and Comverse Technology, Inc. (1.4%), all of
which gained more than 40% in the same time frame. As a result, while the six
months ended November 30, 1998, were challenging ones, they were, in the end,
good ones for our portfolio. For the period, the Fund posted a total return of
- -8.54% (Investor A Shares without sales charge).* The S&P MidCap 400 Index,/1/
the Fund's benchmark, posted a return of -1.56% for the same period.
Earnings Are Key
Clearly, investors' fears have eased, and market sentiment has again grown
positive, particularly with regard to mid- and smaller capitalization stocks. At
the same time, however, we believe it is clear that our economy is slowing.
Consequently, earnings expectations have been lowered--and having been lowered,
it is apparent there will be little tolerance for misses or near misses. As a
result, the markets could be somewhat choppy in the months ahead.
<TABLE>
<CAPTION>
Average Annual Total Return As of
November 30, 1998
- ---------------------------------------
1 Year 5 Years 10 Years
- ---------------------------------------
<S> <C> <C> <C>
Investor A* -5.79% 9.28% 12.65%
- ---------------------------------------
Institutional -0.23% 10.65% 13.36%
- ---------------------------------------
* Reflects 5.50% Sales Charge
</TABLE>
Nonetheless, we believe it may be a very good period for mid- and smaller cap
stocks. Having been out of favor throughout much of the market's rise over the
past several years and battered badly in August and September, these stocks have
valuations that are noteworthy, relative to larger capitalization issues. From
this viewpoint alone, they are in a prime position to take over the leadership
of the market. When they will, of course, is impossible to predict.
Nevertheless, we are optimistic about the Fund's prospects in the months ahead.
<TABLE>
<CAPTION>
Average Annual Total Return As of
November 30, 1998
- ----------------------------------
Since
1 Year Inception
(2/4/94)
- ----------------------------------
<S> <C> <C>
Investor B** -4.94% 9.35%
- ----------------------------------
** Reflects Applicable Contingent
Deferred Sales Charge
</TABLE>
As of November 30, 1998, the top five equity holdings in the Fund's portfolio
were Concord EFS, Inc. (2.4% of the Fund's net assets), Office Depot (2.5%),
Cintas Corp. (2.3%), Finova (2.2%), and Sanmina Corp. (2.2%).**
- -------
* The total return, with maximum 5.50% sales charge, was -13.57% for the
period.
** The Portfolio's composition is subject to change.
/1/The Parkstone Mid Capitalization Fund's performance is being compared to the
Standard & Poor's MidCap 400 Index to reflect the Fund's focus on the mid-cap
sector of the U.S. stock market. The index is unmanaged and does not reflect
the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of The Parkstone Mid
Capitalization Fund reflects the deduction of fees for these value-added
services. Past performance is not 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.
6
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds November 30, 1998
Large Capitalization Fund
During the six months ended November 30, 1998--Asian currencies continued to
weaken and the Russian economy threatened to collapse--many investors fled the
marketplace. Those that stayed turned to bigger names for safety and liquidity.
As a result, while virtually all stocks saw declines in August and September,
large capitalization stocks lost less ground than others. Moreover, as the
market rebounded in October and November, larger cap stocks bounced back
strongly--and by the period's end, several were approaching new highs.
Concentrated in this sector, the Fund performed very well during the period.
After holding its own through the months of August and September, the portfolio
advanced. In fact, some of our holdings, America On-line among them, made such
strong gains in October and November, that positions were trimmed slightly. In
short, despite all the sound and fury, the period was a good one for the Fund.
We're pleased to report that for the six months ended November 30, 1998, it
posted a total return of 11.55% (Investor A Shares without sales charge),*
handily beating its benchmark, the S&P 500 Index,/1/ which gained 7.50% over
the same period.
Optimistic, but Cautious
The improvement in market sentiment over the past several months has been
positive. In short, while problems remain both at home and abroad, investors
seem more than willing to look beyond them. And with good reason; long-term
prospects remain bright. In the short-term, however, there is reason for caution
as well. With profits dependent upon activities domestically and globally,
larger corporations may face pressure in both arenas. At home, we think our
economy is slowing. Abroad, many of the economies that triggered the August
debacle are instituting reforms--but change takes time to implement and impact
the marketplace. As a result, while we are optimistic about the prospects for
larger cap issues, we continue to closely monitor the pressures they face.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- --------------------------------
Since
1 Year Inception
(2/1/96)
- --------------------------------
<S> <C> <C>
Investor A* 24.17% 24.86%
- --------------------------------
Investor B** 25.46% 25.57%
- --------------------------------
* Reflects 5.50% Sales Charge
** Reflects Applicable Contingent
Deferred Sales Charge
</TABLE>
As of November 30, 1998, the top five holdings in the Fund's portfolio were
Cisco Systems (3.9% of the Fund's net assets), Microsoft Corp (3.3%), Pfizer,
Inc. (3.2%), Lucent Technologies, Inc. (3.0%) and Warner Lambert Co. (3.0%).**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ---------------------------------
Since
1 Year Inception
(12/28/95)
- ---------------------------------
<S> <C> <C>
Institutional 31.65% 28.08%
- ---------------------------------
</TABLE>
- -------
* The total return, with the 5.50% maximum sales charge, was 5.43% for the
period.
** The Portfolio's composition is subject to change.
/1/The Large Capitalization 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.
7
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds November 30, 1998
International Discovery Fund
Triggered by the Russian government's default on outstanding debt, stock prices
around the world plunged in late summer. While the default itself had little
impact on the global economy, the psychological impact was far-reaching.
Unnerved by events in Asia earlier in the year and by stocks hitting prices far
in excess of anyone's wildest expectations of future discounted profits,
investors worldwide ran for the exits. The implosion of several well-known
hedge funds that had made highly leveraged bets--which, as events played out,
did not pay off--intensified anxiety. Liquidity evaporated, and prices
plummeted. No region was spared.
The situation had improved somewhat by early fall due to events in three major
markets. In Japan, the government took several steps, albeit small ones, toward
structural reform. In Latin America, the Brazilians, aided by the IMF and the
United States, adopted austerity budgeting. In the United States, the Federal
Reserve lowered interest rates to provide liquidity and restore confidence. As
the period drew to a close, several markets were making strong comebacks. But
the gains were not sharp or strong enough to offset the damage done earlier.
For the six months ended November 30, 1998, the portfolio generated a total
return of -7.09% (Investor A Shares without sales charge),* versus its
benchmark, the EAFE Index,/1/ which posted a return of 0.34% for the same
period.
Quality Is Key Looking ahead, we are cautiously optimistic. Given the Japanese
government's recent actions, we expect conditions to improve, and we may
increase our exposures there soon. In Europe, the recent trend toward
consolidation continues. We believe, more efficiency can only bode well over the
long-term for investors, and given its long-term focus, the Fund remains heavily
weighted in this region. In Southeast Asia, the markets appear to have bottomed,
and are now recovering. In the long run, renewed economic growth should create
buying opportunities. In the short term, due to quality considerations, the Fund
may remain somewhat underweighted in this region.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -----------------------------------------
Since
1 Year 5 Years Inception
(12/29/92)
- -----------------------------------------
<S> <C> <C> <C>
Investor A* -0.13% 5.34% 8.15%
- -----------------------------------------
Institutional 5.95% 6.77% 9.46%
- -----------------------------------------
* Reflects 5.50% Sales Charge
</TABLE>
As of November 30, 1998, the top five holdings in the Fund's portfolio were
Altran Technologies (3.1% of the Fund's net assets), Takeda Chemical (3.2%),
Nestle (2.8%), Nokia Corp. (2.8%) and Mannesmann AG (2.5%).**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- --------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------
<S> <C> <C>
Investor B** 0.10% 2.47%
- --------------------------------
** Reflects Applicable
Contingent Deferred Sales
Charge
</TABLE>
- -------
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 total return, with the maximum 5.50% sales charge, was -12.19% for the
period.
** The Portfolio's composition is subject to change.
/1/The International Discovery 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.
8
<PAGE>
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Portfolio Performance Discussion, continued
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The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
Worries about the stability of markets in Asia and Russia swirled through the
U.S. markets during the six months ended November 30, 1998. In August, as
concern escalated and with news that an over-leveraged, multi-billion-dollar
hedge fund was on the verge of collapse, investors fled. Across all sectors,
stocks declined. Investors sought safety and liquidity in Treasury securities,
and interest rates moved lower. But, with the Fund's solid underpinning in
high-quality, fixed-income securities and strong larger cap stocks, the effect
of all of this sound and fury was minimized.
Moreover, when stocks regained their footing and moved higher in October and
November, the large caps posted strong gains. Also, as November drew to a
close, the Fed made the third of its three moves during the period to cut
rates. Investor enthusiasm for high-quality securities beyond Treasuries grew--
and our fixed-income holdings across the spectrum advanced. As a result, while
the period was extremely volatile, it was also a relatively good one. For the
six months ended November 30, 1998, the Fund produced a total return of 3.54%.
The Fund is compared to the S&P 500 Index,/1/ which returned 7.50%; the Lehman
Brothers Intermediate Government/Corporate Bond Index,/1/ which returned 5.05%;
and the Salomon Brothers Broad Index,/1/ which returned 4.57% for the period.
Choppy Seas Ahead?
Despite investors' renewed enthusiasm for equities, many of the problems in
economies globally, and in our own economy, that wreaked such havoc in the U.S.
stock market this past summer still exist. On the positive side, however, steps
are being taken to address them. Domestically, the Fed's recent actions to lower
interest rates should make the transition to a slower-growing economy easier.
Abroad, the Japanese are moving toward bank reform, and the Brazilians, with
the help of the IMF, are getting their house in order. So, while we remain
cautious, we are optimistic. Looking at the bigger picture, while the markets
may be volatile in the months ahead, long-term prospects remain bright.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ----------------------------------
Since
1 Year Inception
(12/30/96)
- ----------------------------------
<S> <C> <C>
Institutional 10.29% 10.32%
- ----------------------------------
</TABLE>
As of November 30, 1998, the Fund was conservatively positioned. The
portfolio's equity allocation was near the low end of its possible range, with
22.3% of its net assets invested in stocks. As of the same date, the Fund's
fixed-income allocation was near the high end, with 73.2% of the portfolio
invested in high-quality fixed-income securities. The remainder of the Fund's
net assets were held in cash or cash equivalents.*
- -------
* The Portfolio's composition is subject to change.
/1/The Fund's performance is compared to the Standard & Poor's 500 Stock Index
and the Lehman Brothers Intermediate Government/Corporate Bond Index. The S&P
500 Index represents the performance of the U.S. stock market as a whole; and
the Lehman Brothers Intermediate Government/Corporate Bond Index is
representative of intermediate-term bonds. 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
shares, when redeemed, may be worth more or less than their original cost.
9
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
Concerns about events in Asia and Russia, and uncertainty about the economic
and political environment in the United States, dominated the market
environment during the six months ended November 30, 1998. In August, as worry
reached a fever pitch, the equities market declined sharply--and stocks across
all sectors were battered as investors fled to the safety and liquidity of
high-quality fixed-income securities. Conservatively positioned with
approximately 45% of its assets invested in high-quality bonds,* the Fund was
hit as the market declined, but the blow was cushioned.
As fears eased in October, stocks rebounded, and by the end of the period, much
of the ground lost had been regained. Even more importantly, this rally was a
broader-based advance than those seen earlier. Lagging the large caps for more
than two years, smaller and mid-cap issues made strong gains in October and
November, and exposures in these sectors made solid contributions to
performance. Large-cap growth stocks also came back strongly. As a result,
while the period was extremely volatile--and very challenging--our conservative
and balanced approach to the marketplace served shareholders well. For the six
months ended November 30, 1998, the Fund produced a total return of 1.05%. The
Fund's benchmarks, the S&P 500 Index/1/ and the Salomon Brothers Broad
Index,/1/ produced returns of 7.50% and 4.57%, respectively.
Market Sentiment Rules
Given the rebound we saw in stocks in October and November, it is clear that the
market is very powerful. For the moment, at least, investors appear to be
assessing the situation from a long-term perspective. And, long-term prospects
are indeed bright. In the short term, however, we feel the situation calls for
caution. Clearly, steps are being taken in markets overseas to address
structural problems--but these changes will not happen overnight. In addition,
we believe our own economy is slowing, and corporate profits are expected to
drop. As a result, while we are optimistic about prospects for the financial
markets in the months ahead, we are more committed than ever to taking a
cautious and balanced approach to the marketplace.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -----------------------------------------
Since
1 Year 5 Years Inception
(1/31/92)
- -----------------------------------------
<S> <C> <C> <C>
Investor A* 3.75% 9.49% 9.88%
- -----------------------------------------
Institutional 9.11% 10.80% 10.85%
- -----------------------------------------
* Reflects 4.75% Sales Charge
</TABLE>
As of November 30, 1998, the Fund's equity allocation was near the low end of
its possible range, with approximately 52% of its assets invested in stocks. As
of the same date, the Fund's fixed-income allocation was near the high end of
its range, with some 45% of the portfolio invested in high-quality fixed-income
securities. The remainder of the Fund's net assets were held in cash or cash
equivalents.*
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- --------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------
<S> <C> <C>
Investor B** 3.08% 9.43%
- --------------------------------
** Reflects Applicable
Contingent Deferred Sales
Charge
</TABLE>
- -------
* The Portfolio's composition is subject to change.
/1/The performance of the Parkstone Balanced Allocation Fund is compared to the
Standard & Poor's 500 Stock Index and the Salomon Brothers Broad Index. The
Standard & Poor's 500 Stock Index represents the performance of the U.S.
stock market as a whole. The Salomon Brothers Broad Index represents the
performance of overall bond market. The indices are unmanaged and do not
reflect the deduction of fees associated with a mutual fund such as
investment management and fund accounting fees. The performance of the
Parkstone Balanced Allocation Fund reflects the deduction of fees for these
value-added services. Past performance is not predictive of future results.
The investment return and NAV will fluctuate, so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
10
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
Turmoil in Asia and Russia, coupled with concerns about our own economy, roiled
the markets in the six months ended November 30, 1998. In August, with news
that a multi-billion-dollar hedge fund was on the verge of collapse, selling
rose to a fever pitch in the equities markets. With a majority of its assets
invested in stocks and with exposures in the small, mid- and international
sectors, the Fund was impacted as the market declined by double digits. Here,
however, the Fund's larger-than-normal allocation to high-quality, fixed-income
securities cushioned performance as investors fled to quality, and Treasury
securities experienced a surge in popularity.*
As of November 30, 1998, 72.6% of the Fund was invested in equities. As of the
same date, 26.2% of the portfolio was invested in high-quality fixed-income
securities. The remainder of our assets were held in cash or cash equivalents.*
In October, as concern about the situation overseas and our own economy eased
somewhat, equities rebounded. Moreover, this advance was not limited to just
the biggest and best-known companies. Many smaller and mid-cap stocks made
strong gains as well. As a result, while the period was an extremely
challenging one, it was a relatively good one for the Fund. For the six months
ended November 30, 1998, the Fund posted a total return of -2.36%. The Fund's
benchmarks, the S&P 500 Index/1/ and the Salomon Brothers Broad Index,/1/
produced returns of 7.50% and 4.57%, respectively.
Cautiously Optimistic
Going forward, we believe the months ahead will be good ones for the markets.
While there is no denying that problems still exist abroad, the investors seem
more than willing to take a long-term approach to investing. Such optimism is
not completely irrational: The Japanese are taking steps to restructure their
economy, albeit baby steps, and the IMF is working with Brazil to stabilize its
economy. While a disequilibrium still exists, the liquidity crunch is easing.
Nonetheless, there is reason to be cautious as well. In our opinion, our own
economy is slowing, and corporate profits will fall in the year ahead. In
addition, while problems abroad have eased, they have not been resolved--and
uncertainty concerning the global situation lingers. As a result, while we are
optimistic about prospects for the financial markets in the months ahead, we
also believe the environment now calls for caution as well.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ---------------------------------
Since
1 Year Inception
(12/30/96)
- ---------------------------------
<S> <C> <C>
Institutional 6.64% 8.44%
- ---------------------------------
</TABLE>
- -------
* The Portfolio's composition is subject to change.
/1/The performance of the Parkstone Aggressive Allocation Fund is compared to
the Standard & Poor's 500 Stock Index and the Salomon Brothers Broad Index.
The Standard & Poor's 500 Stock Index represents the performance of the U.S.
stock market as a whole. The Salomon Brothers Broad Index represents the
performance of 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 their original cost.
11
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Equity Income Fund
Like other funds of this kind, our portfolio was heavily weighted in dividend-
paying stocks throughout the six months ended November 30, 1998. Historically,
these stocks have been relatively less volatile than others in times of market
turbulence, and that was the case this time as well. In the rough-and-tumble
environment of August and September, valuations of our holdings corrected, but
to a far lesser degree than many other Fund's holdings. Then, as the market
recovered in the fall, they steadily regained ground.
At the same time, however, the Fund held a number of positions in convertibles,
particularly in smaller and mid-cap growth issues. These holdings did not fare
well during the correction, and liquidity was constrained. Throughout the
period, these holdings were reduced. This process was a relatively slow one,
however, due to our efforts to control capital gains. As a result, the
underperformance of these holdings did negatively impact the Fund's
performance. For the six months ended November 30, 1998, the Fund produced a
total return of 0.43% (Investor A Shares without sales charge),* lagging its
benchmark, the S&P 500 Index,/1/ which posted a return of 7.50% for the same
period.
Looking Ahead
We believe the marketplace may continue to be somewhat volatile in the months
ahead. Despite the decline in August, the valuations of larger cap growth stocks
are again returning to all-time highs. As a result, while we are optimistic, we
are somewhat cautious. Designed to protect assets in down drafts and provide a
competitive total rate return over a market cycle, the Fund remains heavily
weighted in dividend-paying stocks. In the months ahead, we will continue to
work to seek out and capitalize on those stocks that are currently undervalued
in terms of their future growth prospects, as well as exhibiting improvements in
investor sentiment.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
1 Year 5 Years 10 Years
- ----------------------------------------
<S> <C> <C> <C>
Investor A* 4.65% 12.47% 13.55%
- ----------------------------------------
Institutional 11.01% 13.93% 14.29%
- ----------------------------------------
* Reflects 5.50% Sales Charge
</TABLE>
As of November 30, 1998, the Fund was overweighted in energy, industrials,
utilities and consumer cyclicals versus its benchmark, the S&P 500 Index. As of
the same date, the Fund was underweighted in technology, health care and
telecommunications. The top five holdings in the Fund's portfolio were Emerson
Electric Co. (3.6% of the Fund's net assets), Bristol Myers Squibb Co. (3.2%),
Pitney Bowes, Inc. (3.1%), United Technologies Corp. (3.0%) and Masco Corp.
(2.8%).**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ---------------------------------
Since
1 Year Inception
(2/4/94)
- ---------------------------------
<S> <C> <C>
Investor B** 5.24% 12.33%
- ---------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
- -------
* The total return, with the maximum 5.50% sales charge, was -5.08% for the
period.
** The Portfolio's composition is subject to change.
/1/The Equity Income 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.
12
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Fixed Income Funds
In short, the six months ended November 30, 1998, were very challenging ones
for fixed-income investors. As the period opened, aftershocks from events in
Asian markets reached our own--and indications that our economy was slowing
began to materialize. While worries about inflation were nonexistent, concern
about deflation increased. Anxiety in the marketplace, already high, mounted.
Then, in August, evidence that the Russian economy was on the verge of
disintegration sent anxiety skyrocketing. Investors ran for cover. In the days
that followed the collapse of Long Term Capital Management, a highly leveraged,
multi-billion-dollar hedge fund, exacerbated the situation. Liquidity
evaporated. Looking for a safe haven, investors worldwide poured money into
U.S. Treasury securities, and fixed-income sectors across the spectrum felt the
effects.
Many of the situations that had convulsed the markets in August eased somewhat
by late September. Abroad, monetary authorities took the first steps toward
making long overdue changes in their economies. At home, in a effort to provide
liquidity and restore confidence, the Federal Reserve made three cuts in short-
term interest rates. As a result, by the period's end, the environment had
improved. Nonetheless, throughout the period, as uncertainty wreaked havoc,
intermediate and short-term Treasury securities were the place to be. Due to
our belief that interest rates would fall, our portfolios were positioned to
benefit and at no point did we compromise our high-quality standards to chase
yield. In recent weeks, the markets have been more liquid, and confidence has
been coming back, albeit slowly. Nonetheless, sentiment still favors high-
quality, intermediate-term securities--and this may be the case over the near-
term while the environment clears. Consequently, we expect to approach the
marketplace cautiously in the weeks ahead.
At the same time, however, we are optimistic about our Funds' prospects. Given
the environment of the past several months, there is a good deal of supply in
the pipeline, particularly in the corporate arena. Many of these securities,
when issued, will present attractive opportunities for investors. As a result,
we believe our Funds are well positioned for the declining rate environment and
somewhat choppy markets we see ahead.
Bond Fund
In the tumultuous environment of the six months ended November 30, 1998, we're
pleased to report that the Fund held its own. As interest rates fell, the Fund
benefited from its conservative positioning along the yield curve, some 5%
longer than the market benchmark, the Salomon Brothers Broad Index./1/ Also, the
portfolio was underweighted in longer corporate bonds, which took the brunt of
the market's shift in sentiment. Over the course of the period, too, exposures
in mortgage-backed securities, a sector that also underperformed, were slightly
reduced. While not overweighted in intermediate Treasuries, the Fund did hold
10.96% of its assets in these securities--and in the environment of the period,
this sector was virtually the only place to be. Intermediate- and shorter-term
Treasury securities outperformed all others. Consequently, the Fund's exposures
here provided a strong, stable foundation for the portfolio. As a result, in the
very challenging environment of the six months ended November 30,
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
1 Year 5 Years 10 Years
- ----------------------------------------
<S> <C> <C> <C>
Investor A* 3.32% 5.45% 7.74%
- ----------------------------------------
Institutional 8.67% 6.82% 8.44%
- ----------------------------------------
* Reflects 4.75% Sales Charge
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
Since
1 Year Inception
(2/4/94)
- -------------------------------
<S> <C> <C>
Investor B** 2.56% 5.43%
- -------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
1998, the Fund produced a total return of 4.35% (Investor A Shares without
sales charge)* compared to its benchmark, the Salomon Brothers Broad Index,
which returned 4.57% for the period.
13
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Capitalizing on the Environment
Historically, major shifts in sentiment have created opportunities, and that
was the case this time as well. As all eyes focused on the Treasury sector,
other issues grew more and more attractive. In recent weeks, we have moved to
capitalize on several of these opportunities and added slightly to our
positions in the corporate and mortgage-backed sectors. Nonetheless, it is
clear that uncertainty is, while not rampant, still present in the marketplace.
Until the environment changes significantly, we expect to maintain our
conservative posture.
As of November 30, 1998, 48.4% of the Fund's net assets were invested in U.S.
Treasury and Agency securities, 5.4% in mortgage-backed securities, 6.5% in
corporate bonds and 29.8% in asset-backed securities, with the remainder
invested in a range of government securities. As of the same date, the average
maturity of the portfolio's holdings was 12.8 years; the average credit
quality, AAA.**
- -------
* The total return, with the maximum 4.75% sales charge, was -0.63% for the
period.
** The Portfolio's composition is subject to change.
/1/The Bond Fund's performance is compared to the Salomon Brothers Broad Index,
which represents the performance of overall bond market. The index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Parkstone Bond Fund reflects the deduction of fees for these value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
14
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Limited Maturity Fund
Consistent with our belief that interest rates would trend downward, the
average duration of the Fund was somewhat longer than that of the index
throughout the period. This positioning contributed positively to performance.
However, in this Fund, our efforts are focused on maintaining a yield advantage
with high-quality spread product--and virtually all higher yielding issues
suffered as investors fled to Treasuries in August and September. As the
markets calmed down throughout the fall, many of these securities strengthened,
and as the period drew to a close, they began gaining on Treasuries.
Nevertheless, due to its heavy weighting in asset-backed securities and
exposures in nongovernment sectors, the Fund produced a total return of 3.52%
(Investor A Shares without sales charge)* for November 30, 1998, versus its
benchmark, the Salomon Brothers 1-5-Year Investment Grade Bond Index,/1/ which
produced a return of 3.94% for the same period.
A Measured, Cautious Approach
In recent weeks, as confidence and liquidity have begun to reappear in the
marketplace, sectors beyond Treasuries are strengthening. However, while the
situations have improved significantly, investors are still wary, domestically
and globally, and problems can always resurface. As a result, while we are
optimistic about the Fund's prospects in the months ahead, we continue to take a
cautious and conservative approach to the marketplace.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
1 Year 5 Years 10 Years
- ----------------------------------------
<S> <C> <C> <C>
Investor A* 3.28% 4.47% 6.42%
- ----------------------------------------
Institutional 6.49% 5.32% 6.85%
- ----------------------------------------
* Reflects 2.75% Sales Charge
</TABLE>
As of November 30, 1998, 27.5% of the Fund's net assets were invested in U.S.
Treasury and Agency securities, 3.3% in mortgage-backed securities, 35.1% in
corporate bonds, and 25.2% in asset-backed securities, with the remainder
invested in a range of government securities. As of the same date, the average
maturity of the portfolio's holdings was 4.5 years; the average credit quality,
AA1.**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------
<S> <C> <C>
Investor B** 0.38% 3.98%
- -------------------------------
** Reflects Applicable
Contingent Deferred Sales
Charge
</TABLE>
- -------
*The total return, with the maximum 2.75% sales charge, was 0.66% for the
period.
** The Portfolio's composition is subject to change.
/1/The Limited Maturity Fund's performance is compared to the Salomon Brothers
1-5-Year Investment Grade Bond Index, which represents the performance of U.S.
government and investment-grade corporate bonds with maturities of 1 to 5
years. The index is unmanaged and does not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Limited Maturity Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results. The investment return and NAV will
fluctuate, so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
15
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Intermediate Government Obligations Fund
Invested in intermediate government securities, the Fund benefited as investors
fled to quality during the six months ended November 30, 1998. During the
period, Treasury and agency securities in the intermediate range of the yield
curve outperformed virtually all other fixed-income securities. At the same
time, however, as rates dropped, prepayment risk rose, and mortgage-backed
securities lagged Treasuries.
Nonetheless, because our objective is yield, as opposed to appreciation, the
Fund held 21.9% of its assets in mortgage-backed securities. As a result, the
Fund fell just short of its benchmark, the Salomon Brothers 1-10-Year Treasury
Index,/1/ which produced a return of 5.05% and is very heavily weighted in
agency and Treasury securities. For the six months ended November 30, 1998, the
Fund produced a total return of 4.48% (Investor A Shares without load).*
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ----------------------------------------
1 Year 5 Years 10 Years
- ----------------------------------------
<S> <C> <C> <C>
Investor A* 2.51% 4.37% 6.63%
- ----------------------------------------
Institutional 7.78% 5.61% 7.27%
- ----------------------------------------
* Reflects 4.75% Sales Charge
</TABLE>
Focusing on Yield
Going forward, we expect to see interest rates trend lower. Nonetheless, because
the Fund holds primarily seasoned mortgages that experience lower-than-average
prepayments and produce solid yields, we do not expect to make a major change in
the portfolio's allocation in the near-term. As of November 30, 1998, 86.3% 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 5.3 years.**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -------------------------------
Since
1 Year Inception
(2/4/94)
- -------------------------------
<S> <C> <C>
Investor B** 1.80% 4.29%
- -------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
- -------
* The total return, with the maximum 4.75% sales charge, was -0.46% for the
period.
** The Portfolio's composition is subject to change.
/1/The Intermediate Government Obligations Fund's performance is compared to
the Salomon Brothers 1-10-Year Treasury Index, which represents the performance
of Treasury bonds in that maturity range. The index is unmanaged and does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone
Intermediate Government Obligations Fund reflects the deduction of fees for
these value-added services. Past performance is not predictive of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
16
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
U.S. Government Income Fund
As uncertainty swirled around the marketplace and interest rates dropped,
prepayment risks rose. Mortgage-backed securities weakened and underperformed
Treasuries. Invested primarily in very seasoned mortgages, the Fund experienced
a lower level of prepayment. Over the course of the period, the portfolio
continued to achieve our objective and produce a solid yield. For the six
months ended November 30, 1998, the Fund produced a total return of 3.55%
(Investor A Shares without sales charge)* compared to its benchmark, the
Salomon Brothers 1-10-Year Treasury Index,/1/ which produced a return of 5.05%.
Looking Ahead
As always, however, all good things eventually come to an end. While prepayments
were not high during the period, there were some. In addition, many of the older
mortgages in the portfolio are now retiring.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -----------------------------------------
Since
1 Year 5 Years Inception
(11/12/92)
- -----------------------------------------
<S> <C> <C> <C>
Investor A* 2.48% 5.31% 5.56%
- -----------------------------------------
Institutional 7.88% 6.55% 6.61%
- -----------------------------------------
* Reflects 4.75% Sales Charge
</TABLE>
Meanwhile the current market volatility presents many attractive opportunities
to reinvest funds in very high-quality securities. We will make every effort to
capitalize on these in the months ahead.
As of November 30, 1998, 31.4% of the Fund's net assets were invested in
mortgage-backed securities and commercial mortgage obligations, and 66.3% in
U.S. Treasury and agency securities.**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ---------------------------------
Since
1 Year Inception
(2/4/94)
- ---------------------------------
<S> <C> <C>
Investor B** 1.68% 5.20%
- ---------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
- -------
* The total return, with the maximum 4.75% sales charge, was -1.34% for the
period.
** The Portfolio's composition is subject to change.
/1/The U.S. Government Income Fund's performance is compared to the Salomon
Brothers 1-10-Year Treasury Index, which represents the performance of Treasury
bonds in that maturity range. The index is unmanaged and does not reflect the
deduction of fees associated with a mutual fund, such as investment management
and fund accounting fees. The performance of the Parkstone U.S. Government
Income Fund reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
17
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Municipal Bond Funds
Uncertainty regarding the impact of events abroad on the U.S. economy rippled
through the financial markets during the six months ended November 30, 1998.
All markets and all sectors were affected. Enthusiasm for Treasury securities
skyrocketed. Not quite as liquid, but perceived to be quite safe, munis also
experienced price gains as the Federal Reserve moved to lower interest rates
three times over the period. As a result, despite the volatile environment in
the taxable markets, municipal markets were quiet in comparison and posted
gains.
Going forward, we believe the months ahead will be good for the municipals and
the fixed-income markets. Balance sheets across the country are very strong,
and surpluses abound. While rates may drop lower in the coming months, many
municipalities may not need to issue new bonds, or, given the surpluses, they
have the taxpayer support to do so. In addition, many municipalities completed
restructuring outstanding debt in the low interest-rate environment of the past
year. Consequently, new issuance in the year ahead may be rather light--and
tighter supply will further stabilize the market. Given the instability of
other financial markets in recent months, we believe, the sheer stability of
munis alone may attract more investors in the near-term, and over the long run.
Municipal Bond Fund
Attention focused on the intermediate range of the yield curve as interest rates
dropped and investors looked to lengthen maturities during the six months ended
November 30, 1998. Given the market environment, quality, too, was a key
concern. Invested primarily in high-quality, intermediate-term securities, the
Fund benefited as these issues performed very strongly. As a result, we're
pleased to report that the Fund produced a total return of 3.32% (Investor A
Shares without sales charge)+ for the period. The Fund's benchmark, the Lehman
Brothers Mutual Fund Intermediate Index,/1/ produced a return of 3.88% for the
same six-month period.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- ---------------------------------------
1 Year 5 Years 10 Years
- ---------------------------------------
<S> <C> <C> <C>
Investor A* 0.81% 3.80% 5.73%
- ---------------------------------------
Institutional 6.09% 5.05% 6.38%
- ---------------------------------------
* Reflects 4.75% Sales Charge
</TABLE>
Looking ahead, we believe that interest rates may move lower. Nonetheless,
because many municipalities have already taken advantage of the low interest-
rate environment and because short-term capital is available at such low rates,
we do not expect the supply of municipals to surge in the coming months.
Consequently, we're optimistic about the Fund's prospects in the months ahead.
With the holdings still concentrated in high-quality, intermediate-term
securities, the Fund should do well in the declining rate environment we see
ahead.
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- --------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------
<S> <C> <C>
Investor B** -0.04% 3.41%
- --------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
As of November 30, 1998, the average maturity of the Fund was 6.9 years. Widely
diversified, the portfolio held securities issued by more than 20
municipalities, and the average credit quality of these holdings was a strong
AA.**
- -------
+ The total return, with the maximum 4.75% sales charge, was -1.55% for the
period.
** The Portfolio's composition is subject to change.
/1/The performance of the Parkstone Municipal Bond Fund is compared to the
Lehman Brothers Mutual Fund Intermediate Index, which consists of the Lehman
Brothers Municipal Bond Index from 10/31/88 through 10/31/95; thereafter, the
data is from the Lehman Brothers Mutual Fund Intermediate Index, which
corresponds with the inception of the Index on 10/31/95. The Index is unmanaged
and does not reflect the deduction of fees associated with a mutual fund, such
as investment management and fund accounting fees. The performance of the
Parkstone Municipal Bond Fund reflects the deduction of fees for these value-
added services. Past performance is not predictive of future results. The
investment return and NAV will fluctuate, so that an investor's shares, when
redeemed, may be worth more or less than the original cost.
18
<PAGE>
- --------------------------------------------------------------------------------
Portfolio Performance Discussion, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Michigan Municipal Bond Fund
Supply, rather than problems in Asia or Russia, was a key factor in the
Michigan market over the course of the six months ended November 30, 1998. The
low interest-rate environment and the ratings upgrade of qualified school
district bonds prompted several new issues. Demand, however, remained strong as
market sentiment shifted toward high-quality bonds. Like virtually all fixed-
income securities, Michigan municipal bonds lagged Treasury securities, but
still did quite well. Intermediate issues were particularly strong performers,
and with its assets concentrated in these securities, the Fund benefited. As a
result, for the six months ended November 30, 1998, we're pleased to report that
the Fund produced a total return of 3.22% (Investor A Shares without sales
charge)* compared to its benchmark, the Lehman Brothers Mutual Fund Intermediate
Index,/1/ which returned 3.88% for the period. We're optimistic about the Fund's
prospects in the months ahead. Supply is expected to tighten again. In addition,
given the volatility in the financial markets, quality and stability may become
even more attractive characteristics going forward. As a result, no significant
changes are anticipated in the Fund's allocation. As of November 30, 1998, the
average maturity of the holdings in the Fund's portfolio was 7.4 years; the
average credit quality was a strong AA. No more than 5% of the Fund's net assets
were invested in any one issue.**
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- -----------------------------------------
Since
1 Year 5 Years Inception
(7/2/90)
- -----------------------------------------
<S> <C> <C> <C>
Investor A* 0.92% 4.09% 5.74%
- -----------------------------------------
Institutional 6.22% 5.36% 6.51%
- -----------------------------------------
* Reflects 4.75% Sales
Charge
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Return
As of November 30, 1998
- --------------------------------
Since
1 Year Inception
(2/4/94)
- --------------------------------
<S> <C> <C>
Investor B** 0.15% 3.70%
- --------------------------------
** Reflects Applicable
Contingent Deferred
Sales Charge
</TABLE>
- -------
+ Investing in a regional fund may involve more risk, since the companies are
located in the same geographical area.
* The total return, with the maximum 4.75% sales charge, was -1.67% for the
period.
** The Portfolio's composition is subject to change.
/1/The performance of the Parkstone Michigan Municipal Bond Fund is compared to
the Lehman Brothers Mutual Fund Intermediate Index, which consists of the
Lehman Brothers Municipal Bond Index from 10/31/88 through 10/31/95;
thereafter, the data is from the Lehman Brothers Mutual Fund Intermediate
Index, which corresponds with the inception of the Index on 10/31/95. The Index
is unmanaged and does not reflect the deduction of fees associated with a
mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone Michigan Municipal Bond Fund reflects the
deduction of fees for these value-added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an 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 November 30, 1998
Money Market Funds
The money markets were extremely volatile over the course of the six months
ended November 30, 1998. Events in markets abroad and indications that our own
economy was slowing prompted a stampede to quality. In August, the possible
collapse of a multi-billion-dollar hedge fund exacerbated the situation.
Treasury securities traded at rich premiums, and liquidity virtually vanished
from all other sectors of the marketplace. In the final two months of the
period, the Federal Reserve cut interest rates. On this, as well as positive
moves by governments overseas to reform their markets and economies, anxiety
subsided, but did not disappear completely. As the period drew to a close,
liquidity began to trickle tentatively back into the markets.
Consistent with our belief that rates would decline, we had worked hard earlier
in the year to extend the maturities of the Funds. As a result, all performed
well in the tumultuous environment of the period. Going forward, we believe
rates will continue to trend downward. While opportunities to extend maturities
are still few and far between, we will continue to seek and capitalize on them
whenever they appear in the months ahead. At the same time, however, we will
not compromise the Funds' high-quality standards in order to do so.
PRIME OBLIGATIONS FUND
As of November 30, 1998, 80.3% of the Fund's net assets were invested in
commercial paper with the remainder invested in overnight securities. The
average maturity of the Fund's holdings was 57 days.*
U.S. GOVERNMENT OBLIGATIONS FUND
As of November 30, 1998, the Fund's net assets were invested in overnight
securities, and short-term agency and Treasury securities. The average maturity
of the portfolio was approximately 46 days.*
TREASURY FUND
The Fund was invested primarily in repurchase agreements as of November 30,
1998, and the average maturity of the portfolio was 26 days.*
TAX-FREE FUND
As of November 30, 1998, the average maturity of assets in the Fund's portfolio
was approximately 48 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 portfolio's composition is subject to change.
An investment in the fund is not insured or guaranteed by the FDIC or any other
government agency. Although the fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
fund.
Parkstone Funds are distributed by SEI Investments Distribution Co. (SIDC),
Oaks, PA 19456. SIDC is not affiliated with National City Investment Management
Company and is not a bank. This report must be preceded or accompanied by a
current Parkstone Funds prospectus. Read it carefully before you invest or send
money.
20
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share
Amounts)
Prime U.S. Government
Obligations Obligations Tax-Free Treasury
Fund Fund Fund Fund
----------- --------------- -------- --------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Amortized
cost $677,082; $153,971;
$112,903 and
$65,244, respectively)......... $677,082 $153,971 $112,903 $ 65,244
Repurchase agreements, at cost.. 68,250 31,823 -- 230,878
-------- -------- -------- --------
Total Investments............... 745,332 185,794 112,903 296,122
Cash............................ -- 1 -- 28
Interest and dividends
receivable..................... 700 255 957 781
Receivable for capital shares
issued......................... 21 -- -- --
Prepaid expenses and other
assets......................... 1 -- 3 16
-------- -------- -------- --------
Total Assets.................... 746,054 186,050 113,863 296,947
-------- -------- -------- --------
Liabilities:
Dividends payable............... 2,904 689 236 1,176
Payable for capital shares
redeemed....................... 36 -- -- --
Accrued expenses and other
payables:
Investment advisory fees....... 56 14 9 23
Administration fees............ 51 13 8 12
12b-1 fees (Investor A)........ 2 1 -- 1
Accounting fees................ 10 3 3 3
Transfer agent fees............ 12 17 14 16
Legal fees..................... 9 6 1 5
Audit fees..................... 16 5 4 7
Trustees' fees and expenses.... 6 -- 1 3
Other.......................... 54 19 17 39
-------- -------- -------- --------
Total Liabilities............... 3,156 767 293 1,285
-------- -------- -------- --------
Net Assets:
Paid-in capital................. 742,898 185,285 113,568 295,630
Accumulated undistributed
(distributions in excess) of
net investment income.......... -- (1) -- --
Net unrealized appreciation
(depreciation) on investments.. -- -- -- --
Accumulated undistributed net
realized gains (losses) on
investment transactions........ -- (1) 2 32
-------- -------- -------- --------
Net Assets...................... $742,898 $185,283 $113,570 $295,662
======== ======== ======== ========
Net Assets
Investor A..................... $ 16,669 $ 941 $ 1,617 $ 8,162
Investor B..................... 551 -- -- --
Institutional.................. 725,678 184,342 111,953 287,500
-------- -------- -------- --------
Total........................ $742,898 $185,283 $113,570 $295,662
======== ======== ======== ========
Outstanding units of beneficial
interest (shares)
Investor A..................... 16,672 941 1,617 8,152
Investor B..................... 551 -- -- --
Institutional.................. 725,677 184,310 111,948 287,478
-------- -------- -------- --------
Total........................ 742,900 185,251 113,565 295,630
======== ======== ======== ========
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.
21
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share Amounts)
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Assets:
Investments, at value
(Cost $513,994;
$510,468; $299,051 and
$298,191,
respectively).......... $571,229 $616,818 $481,396 $399,553
Repurchase agreements,
at cost................ 12,300 31,312 18,220 --
-------- -------- -------- --------
Total Investments....... 583,529 648,130 499,616 399,553
Cash.................... 1,692 1,568 -- --
Interest and dividends
receivable............. 124 292 298 335
Foreign currency (Cost
$0; $0; $0 and $1,755,
respectively).......... -- -- -- 1,755
Receivable from brokers
for investments sold... 2,209 5,583 -- --
Receivable for capital
shares issued.......... 153 35 2 9
Reclaims receivable..... -- -- -- 376
Prepaid expenses and
other assets........... 15 3 2 4
-------- -------- -------- --------
Total Assets............ 587,722 655,611 499,918 402,032
-------- -------- -------- --------
Liabilities:
Payable for return of
collateral received for
securities on loan..... 107,297 136,213 71,717 --
Cash overdraft.......... -- -- -- 321
Payable to brokers for
investments purchased.. 101 11,011 -- --
Payable for capital
shares redeemed........ 113 98 66 35
Payable for foreign
currency contracts..... -- -- -- 16
Net variation margin on
open future contracts.. 663 1,103 -- --
Accrued expenses and
other payables:
Investment advisory
fees.................. 92 100 67 90
Administration fees.... 37 40 33 31
12b-1 fees (Investor
A).................... 21 13 5 7
12b-1 fees (Investor
B).................... 18 12 7 6
Accounting fees........ 7 7 4 7
Transfer agent fees.... 100 42 12 39
Legal fees............. 20 6 3 4
Audit fees............. 12 11 6 6
Trustees' fees and
expenses.............. 4 4 2 1
Other.................. 58 39 25 110
-------- -------- -------- --------
Total Liabilities....... 108,543 148,699 71,947 673
-------- -------- -------- --------
Net Assets:
Paid-in capital......... 333,409 318,825 234,611 297,399
Accumulated
undistributed
(distributions in
excess) of net
investment income...... (2,786) (2,336) (644) (1,273)
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 61,575 111,357 182,345 101,357
Accumulated
undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... 86,981 79,066 11,659 3,876
-------- -------- -------- --------
Net Assets.............. $479,179 $506,912 $427,971 $401,359
======== ======== ======== ========
Net Assets
Investor A............. $103,249 $ 63,622 $ 22,901 $ 33,033
Investor B............. 29,259 19,106 12,485 10,132
Institutional.......... 346,671 424,184 392,585 358,194
-------- -------- -------- --------
Total................ $479,179 $506,912 $427,971 $401,359
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A............. 4,677 4,645 1,268 2,153
Investor B............. 1,368 1,477 705 685
Institutional.......... 15,427 30,646 21,613 23,052
-------- -------- -------- --------
Total................ 21,472 36,768 23,586 25,890
======== ======== ======== ========
Net Asset Value--
offering and redemption
price per share
Investor A............. $22.08 $13.70 $18.06 $15.34
====== ====== ====== ======
Investor B*............ $21.40 $12.93 $17.72 $14.79
====== ====== ====== ======
Institutional.......... $22.47 $13.84 $18.16 $15.54
====== ====== ====== ======
Maximum Sales Charge
(Investor A)........... 5.50% 5.50% 5.50% 5.50%
===== ===== ===== =====
Maximum Offering Price
(100%/(100%--Maximum
Sales Charge) of net
asset value adjusted to
nearest cent) per share
(Investor A)........... $23.37 $14.50 $19.11 $16.23
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
22
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share
Amounts)
Intermediate U.S.
Limited Government Government
Maturity Bond Obligations Income Bond
Fund Fund Fund Fund
------------- ------------ ---------- --------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost
$172,717; $168,441; $221,992
and $564,441, respectively).. $173,441 $171,834 $226,052 $572,836
Repurchase agreements, at
cost......................... 36,903 38,936 36,439 28,590
-------- -------- -------- --------
Total Investments............. 210,344 210,770 262,491 601,426
Interest and dividends
receivable................... 2,127 2,481 2,176 4,767
Receivable from brokers for
investments sold............. 4,074 628 569 10
Receivable for capital shares
issued....................... 1 1 5 3
Prepaid expenses and other
assets....................... 8 10 9 5
-------- -------- -------- --------
Total Assets.................. 216,554 213,890 265,250 606,211
-------- -------- -------- --------
Liabilities:
Payable for return of
collateral received for
securities on loan........... 36,903 38,936 46,429 109,443
Payable to brokers for
investments purchased........ 2,300 -- -- 10,275
Payable for capital shares
redeemed..................... 48 106 209 19
Accrued expenses and other
payables:
Investment advisory fees..... 19 23 19 65
Administration fees.......... 10 10 13 28
12b-1 fees (Investor A)...... 7 3 9 3
12b-1 fees (Investor B)...... 1 1 13 4
Accounting fees.............. 2 3 4 6
Transfer agent fees.......... 14 16 23 20
Legal fees................... 2 1 2 4
Audit fees................... 4 3 5 7
Trustees' fees and expenses.. 1 -- -- 3
Other........................ 11 14 20 37
-------- -------- -------- --------
Total Liabilities............. 39,322 39,116 46,746 119,914
-------- -------- -------- --------
Net Assets:
Paid-in capital............... 185,475 182,654 222,233 477,217
Accumulated undistributed
(distributions in excess) of
net investment income........ 1 (6) 1 2
Net unrealized appreciation
(depreciation) from
investments ................. 724 3,393 4,060 8,395
Accumulated undistributed net
realized gains (losses) from
investment transactions...... (8,968) (11,267) (7,790) 683
-------- -------- -------- --------
Net Assets.................... $177,232 $174,774 $218,504 $486,297
======== ======== ======== ========
Net Assets
Investor A................... $ 32,892 $ 12,462 $ 45,499 $ 15,041
Investor B................... 1,233 1,689 21,366 6,146
Institutional................ 143,107 160,623 151,639 465,110
-------- -------- -------- --------
Total...................... $177,232 $174,774 $218,504 $486,297
======== ======== ======== ========
Outstanding units of
beneficial interest (shares)
Investor A................... 3,438 1,238 4,884 1,485
Investor B................... 129 168 2,299 605
Institutional................ 14,959 15,960 16,276 45,672
-------- -------- -------- --------
Total...................... 18,526 17,366 23,459 47,762
======== ======== ======== ========
Net Asset Value--offering and
redemption price per share
Investor A................... $9.57 $10.07 $9.32 $10.13
===== ====== ===== ======
Investor B*.................. $9.57 $10.04 $9.29 $10.15
===== ====== ===== ======
Institutional................ $9.57 $10.06 $9.32 $10.18
===== ====== ===== ======
Maximum Sales Charge (Investor
A)........................... 2.75% 4.75% 4.75% 4.75%
===== ===== ===== =====
Maximum Offering Price
(100%/(100%--Maximum Sales
Charge) of net asset value
adjusted to nearest cent) per
share (Investor A)........... $9.84 $10.57 $9.78 $10.64
===== ====== ===== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
23
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands, except Per Share
Amounts)
Michigan
Municipal Municipal Conservative Balanced
Bond Bond Allocation Allocation
Fund Fund Fund Fund
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
Assets:
Investments, at value (Cost
$118,191; $218,385; $17,723 and
$256,842, respectively)........... $122,681 $233,090 $18,582 $293,242
Repurchase agreements, at cost..... -- -- 4,636 28,102
-------- -------- ------- --------
Total Investments.................. 122,681 233,090 23,218 321,344
Interest and dividends receivable.. 2,021 2,714 124 1,357
Foreign currency (Cost $0; $0; $0
and $111, respectively)........... -- -- -- 111
Receivable from brokers for
investments sold.................. -- -- 230 --
Receivable for capital shares
issued............................ -- -- -- 124
Reclaims receivable................ -- -- -- 26
Prepaid expenses and other assets.. 7 -- -- 1
-------- -------- ------- --------
Total Assets....................... 124,709 235,804 23,572 322,963
-------- -------- ------- --------
Liabilities:
Payable for return of collateral
received for securities on loan... -- -- 4,636 60,100
Payable to brokers for investments
purchased......................... 1,037 220 2,277
Payable for capital shares
redeemed.......................... -- 5 -- 48
Payable for foreign currency
contracts......................... -- -- -- 1
Accrued expenses and other
payables:
Investment advisory fees.......... 13 25 3 38
Administration fees............... 5 9 1 20
12b-1 fees (Investor A)........... 2 7 -- 4
12b-1 fees (Investor B)........... -- 2 -- 4
Accounting fees................... 3 4 1 6
Transfer agent fees............... 27 15 7 19
Legal fees........................ 1 2 -- 5
Audit fees........................ 3 4 6 5
Trustees' fees and expenses....... -- -- -- 2
Other............................. 18 34 10 52
-------- -------- ------- --------
Total Liabilities.................. 72 1,144 4,884 62,581
-------- -------- ------- --------
Net Assets:
Paid-in capital.................... 118,755 218,465 17,139 218,551
Accumulated undistributed
(distributions in excess) of net
investment income................. (8) (32) 39 279
Net unrealized appreciation
(depreciation) from investments
and translation of assets and
liabilities in foreign currencies. 4,490 14,705 859 36,400
Accumulated undistributed net
realized gains (losses) from
investment and foreign currency
transactions...................... 1,400 1,522 651 5,152
-------- -------- ------- --------
Net Assets......................... $124,637 $234,660 $18,688 $260,382
======== ======== ======= ========
Net Assets
Investor A........................ $ 8,405 $ 33,155 $ -- $ 17,992
Investor B........................ 646 3,420 -- 7,311
Institutional..................... 115,586 198,085 18,688 235,079
-------- -------- ------- --------
Total........................... $124,637 $234,660 $18,688 $260,382
======== ======== ======= ========
Outstanding units of beneficial
interest (shares)
Investor A........................ 787 2,966 -- 1,305
Investor B........................ 61 306 -- 530
Institutional..................... 10,824 17,713 1,658 17,069
-------- -------- ------- --------
Total........................... 11,672 20,985 1,658 18,904
======== ======== ======= ========
Net Asset Value--offering and
redemption price per share
Investor A........................ $10.68 $11.18 $ -- $13.79
====== ====== ====== ======
Investor B*....................... $10.65 $11.19 $ -- $13.79
====== ====== ====== ======
Institutional..................... $10.68 $11.18 $11.27 $13.77
====== ====== ====== ======
Maximum Sales Charge (Investor A).. 4.75% 4.75% -- 4.75%
===== ===== ===== =====
Maximum Offering Price
(100%/(100%--Maximum Sales Charge)
of net asset value adjusted to
nearest cent) per share (Investor
A)................................ $11.21 $11.74 $ -- $14.48
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
24
<PAGE>
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in
Thousands, except
Per Share Amounts)
Aggressive Equity
Allocation Income
Fund Fund
---------- --------
<S> <C> <C>
Assets:
Investment, at value (Cost $25,178 and $323,841,
respectively)............................................ $29,762 $417,314
Repurchase agreements, at cost............................ 5,018 26,895
------- --------
Total Investments......................................... 34,780 444,209
Interest and dividends receivable......................... 101 1,022
Foreign currency (Cost $19 and $0, respectively).......... 19 --
Receivable from brokers for investments sold.............. -- 13,483
Receivable for capital shares issued...................... -- 5
Reclaims receivable....................................... 8 --
Prepaid expenses and other assets......................... 6 6
------- --------
Total Assets.............................................. 34,914 458,725
------- --------
Liabilities:
Payable for return of collateral received for securities
on loan.................................................. 5,018 74,395
Payable to brokers for investments purchased.............. 233 12,594
Payable for capital shares redeemed....................... -- 273
Accrued expenses and other payables:
Investment advisory fees................................. 5 72
Administration fees...................................... 2 29
12b-1 fees (Investor A).................................. -- 19
12b-1 fees (Investor B).................................. -- 16
Accounting fees.......................................... 9 6
Transfer agent fees...................................... 6 46
Legal fees............................................... -- 6
Audit fees............................................... 4 8
Trustees' fees and expenses.............................. -- 3
Other.................................................... 34 25
------- --------
Total Liabilities......................................... 5,311 87,492
------- --------
Net Assets:
Paid-in capital........................................... 24,823 205,815
Accumulated undistributed (distributions in excess) of net
investment income........................................ 13 570
Net unrealized appreciation (depreciation) from
investments and translation of assets and liabilities in
foreign currencies....................................... 4,584 93,473
Accumulated undistributed net realized gains (losses) from
investment and foreign currency transactions............. 183 71,375
------- --------
Net Assets................................................ $29,603 $371,233
======= ========
Net Assets
Investor A............................................... $ -- $ 91,557
Investor B............................................... -- 25,428
Institutional............................................ 29,603 254,248
------- --------
Total.................................................. $29,603 $371,233
======= ========
Outstanding units of beneficial interest (shares)
Investor A............................................... -- 4,890
Investor B............................................... -- 1,366
Institutional............................................ 2,592 13,647
------- --------
Total.................................................. 2,592 19,903
======= ========
Net Asset Value--offering and redemption price per share
Investor A............................................... $ -- $18.72
====== ======
Investor B*.............................................. $ -- $18.61
====== ======
Institutional............................................ $11.42 $18.63
====== ======
Maximum Sales Charge (Investor A)......................... -- 5.50%
===== =====
Maximum Offering Price (100%/(100%--Maximum Sales Charge)
of net asset value adjusted to nearest cent) per share
(Investor A)............................................. $ -- $19.81
====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
25
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government
Obligations Obligations Tax-Free Treasury
Fund Fund Fund Fund
----------- --------------- -------- --------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.................. $22,131 $9,136 $2,355 $14,417
Dividend income.................. 6 4 54 3
------- ------ ------ -------
Total Income..................... 22,137 9,140 2,409 14,420
------- ------ ------ -------
Expenses:
Investment advisory fees......... 1,588 667 278 1,066
Administration fees.............. 794 334 139 533
12b-1 fees (Investor A).......... 133 180 52 264
12b-1 fees (Investor B).......... 2 -- -- --
Shareholder service fees
(Investor B).................... 1 -- -- --
Accounting fees.................. 81 34 19 50
Custodian fees................... 13 7 6 11
Legal fees....................... 20 10 3 13
Audit fees....................... 8 5 4 7
Trustees' fees and expenses...... 15 5 2 8
Transfer agent fees.............. 66 32 18 47
Registration and filing fees..... 13 5 5 10
Printing costs................... 70 19 4 26
Other............................ 8 3 1 10
------- ------ ------ -------
Total Expenses................... 2,812 1,301 531 2,045
------- ------ ------ -------
Expenses voluntarily reduced..... (159) (141) (45) (425)
------- ------ ------ -------
Net Expenses..................... 2,653 1,160 486 1,620
------- ------ ------ -------
Net Investment Income............ 19,484 7,980 1,923 12,800
------- ------ ------ -------
Realized/Unrealized Gains
(Losses) from Investments:
Net realized gains (losses) from
investment transactions......... -- -- 3 22
------- ------ ------ -------
Net realized gains (losses) from
investments..................... -- -- 3 22
------- ------ ------ -------
Change in net assets resulting
from operations................. $19,484 $7,980 $1,926 $12,822
======= ====== ====== =======
</TABLE>
See notes to financial statements.
26
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $ 648 $ 387 $ 43 $ --
Dividend income......... 336 963 1,515 2,962
Securities lending
income................. 240 154 67 --
Foreign withholding tax
expense................ -- (6) -- (108)
-------- -------- ------- --------
Total Income............ 1,224 1,498 1,625 2,854
-------- -------- ------- --------
Expenses:
Investment advisory
fees................... 2,750 2,803 1,603 2,475
Administration fees..... 550 561 401 427
12b-1 fees (Investor A). 148 92 27 45
12b-1 fees (Investor B). 124 79 42 41
12b-1 fees (Investor
C)*.................... 23 4 1 2
Shareholder service fees
(Investor B)........... 41 26 14 13
Shareholder service fees
(Investor C)*.......... 8 1 -- 1
Accounting fees......... 74 76 55 93
Custodian fees.......... 10 4 8 143
Legal fees.............. 14 11 9 11
Audit fees.............. 7 6 6 6
Trustees' fees and
expenses............... 13 11 6 6
Transfer agent fees..... 201 120 63 93
Registration and filing
fees................... 25 14 11 8
Printing costs.......... 18 20 19 17
Other................... 4 6 4 3
-------- -------- ------- --------
Total Expenses.......... 4,010 3,834 2,269 3,384
-------- -------- ------- --------
Net Investment Income
(Loss)................. (2,786) (2,336) (644) (530)
-------- -------- ------- --------
Realized/Unrealized
Gains (Losses) from
Investments and Foreign
Currencies:
Net realized gains
(losses) from
investment and foreign
currency transactions.. (5,825) 34,208 13,437 (10,962)
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (85,307) (83,661) 32,677 (24,256)
-------- -------- ------- --------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. (91,132) (49,453) 46,114 (35,218)
-------- -------- ------- --------
Change in net assets
resulting from
operations............. $(93,918) $(51,789) $45,470 $(35,748)
======== ======== ======= ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
27
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Intermediate U.S.
Limited Government Government
Maturity Bond Obligations Income Bond
Fund Fund Fund Fund
------------- ------------ ---------- -------
<S> <C> <C> <C> <C>
Investment Income:
Interest income................. $6,091 $5,385 $7,800 $15,859
Dividend income................. 60 26 37 280
Securities lending income....... 25 27 33 279
------ ------ ------ -------
Total Income.................... 6,176 5,438 7,870 16,418
------ ------ ------ -------
Expenses:
Investment advisory fees........ 704 674 847 1,847
Administration fees............. 190 182 229 499
12b-1 fees (Investor A)......... 47 17 61 19
12b-1 fees (Investor B)......... 5 6 83 23
12b-1 fees (Investor C)*........ 4 -- 1 1
Shareholder service fees
(Investor B)................... 2 2 28 8
Shareholder service fees
(Investor C)*.................. 1 -- -- --
Accounting fees................. 35 41 54 69
Custodian fees.................. 5 4 5 7
Legal fees...................... 5 4 6 12
Audit fees...................... 4 4 4 6
Trustees' fees and expenses..... 3 3 3 8
Transfer agent fees............. 37 37 60 54
Registration and filing fees.... 8 4 9 9
Printing costs.................. 12 9 14 22
Other........................... -- 3 1 4
------ ------ ------ -------
Total Expenses.................. 1,062 990 1,405 2,588
------ ------ ------ -------
Expenses voluntarily reduced.... (228) (82) (389) (224)
------ ------ ------ -------
Net Expenses.................... 834 908 1,016 2,364
------ ------ ------ -------
Net Investment Income (Loss).... 5,342 4,530 6,854 14,054
------ ------ ------ -------
Realized/Unrealized Gains
(Losses) from Investments:
Net realized gains (losses) from
investments.................... 728 571 (249) 4,151
Net change in unrealized
appreciation (depreciation)
from investments............... 573 2,931 1,493 3,259
------ ------ ------ -------
Net realized/unrealized gains
(losses) from investments...... 1,301 3,502 1,244 7,410
------ ------ ------ -------
Change in net assets resulting
from operations................ $6,643 $8,032 $8,098 $21,464
====== ====== ====== =======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
28
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Michigan
Municipal Municipal Conservative Balanced
Bond Bond Allocation Allocation
Fund Fund Fund Fund
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
Investment Income:
Interest income................... $2,898 $6,009 $ 381 $ 4,215
Dividend income................... 18 29 23 618
Securities lending income......... -- -- 3 54
Foreign withholding tax expense... -- -- -- (11)
------ ------ ----- -------
Total Income...................... 2,916 6,038 407 4,876
------ ------ ----- -------
Expenses:
Investment advisory fees.......... 478 900 88 1,370
Administration fees............... 129 243 18 274
12b-1 fees (Investor A)........... 11 43 -- 23
12b-1 fees (Investor B)........... 2 14 -- 29
12b-1 fees (Investor C)*.......... -- -- -- 2
Shareholder service fees (Investor
B)............................... 1 5 -- 10
Shareholder service fees (Investor
C)*.............................. -- -- -- 1
Accounting fees................... 32 49 6 56
Custodian fees.................... 2 4 1 34
Legal fees........................ 3 6 -- 8
Audit fees........................ 4 5 -- 5
Trustees' fees and expenses....... 2 3 -- 4
Transfer agent fees............... 16 36 4 54
Registration and filing fees...... 2 3 -- 22
Printing costs.................... 7 11 4 35
Other............................. 1 2 -- 2
------ ------ ----- -------
Total Expenses.................... 690 1,324 121 1,929
------ ------ ----- -------
Expenses voluntarily reduced...... (188) (353) (26) (343)
------ ------ ----- -------
Net Expenses...................... 502 971 95 1,586
------ ------ ----- -------
Net Investment Income (Loss)...... 2,414 5,067 312 3,290
------ ------ ----- -------
Realized/Unrealized Gains (Losses)
from Investments and Foreign
Currencies:
Net realized gains (losses) from
investment and foreign currency
transactions..................... 228 811 468 966
Net change in unrealized
appreciation (depreciation) from
investments and translation of
assets and liabilities in foreign
currencies....................... 1,612 1,931 (168) (1,956)
------ ------ ----- -------
Net realized/unrealized gains
(losses) from investments and
foreign currencies............... 1,840 2,742 300 (990)
------ ------ ----- -------
Change in net assets resulting
from operations.................. $4,254 $7,809 $ 612 $ 2,300
====== ====== ===== =======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
29
<PAGE>
- --------------------------------------------------------------------------------
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Income
Fund Fund
------------- ------------
<S> <C> <C>
Investment Income:
Interest income..................................... $ 270 $ 641
Dividend income..................................... 93 4,895
Securities lending income........................... 6 66
Foreign withholding tax expense..................... (2) --
--------- ------------
Total Income........................................ 367 5,602
--------- ------------
Expenses:
Investment advisory fees............................ 154 1,898
Administration fees................................. 31 380
12b-1 fees (Investor A)............................. -- 118
12b-1 fees (Investor B)............................. -- 96
12b-1 fees (Investor C)*............................ -- 2
Shareholder service fees (Investor B)............... -- 32
Shareholder service fees (Investor C)*.............. -- 1
Accounting fees..................................... 23 55
Custodian fees...................................... 15 4
Legal fees.......................................... 1 10
Audit fees.......................................... 2 6
Trustees' fees and expenses......................... 1 6
Transfer agent fees................................. 3 118
Registration and filing fees........................ 2 5
Printing costs...................................... 6 16
Other............................................... -- 3
--------- ------------
Total Expenses...................................... 238 2,750
--------- ------------
Expenses voluntarily reduced........................ (23) --
--------- ------------
Net Expenses........................................ 215 2,750
--------- ------------
Net Investment Income (Loss)........................ 152 2,852
--------- ------------
Realized/Unrealized Gains (Losses) from Investments
and Foreign Currencies:
Net realized gains (losses) from investment and
foreign currency transactions...................... (298) 51,421
Net change in unrealized appreciation (depreciation)
from investments and translation of assets and
liabilities in foreign currencies.................. (626) (53,843)
--------- ------------
Net realized/unrealized gains (losses) from
investments and foreign currencies................. (924) (2,422)
--------- ------------
Change in net assets resulting from operations...... $ (772) $ 430
========= ============
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
30
<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
--------------------------------------- --------------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- ----------- ------------ ------------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 19,484 $ 40,253 $ 42,020 $ 7,980 $ 16,969 $ 20,287
Net realized gains
(losses) from
investment
transactions.......... -- -- 6 -- 7 (3)
----------- ----------- ----------- --------- --------- -----------
Change in net assets
resulting from
operations............. 19,484 40,253 42,026 7,980 16,976 20,284
----------- ----------- ----------- --------- --------- -----------
Distributions to
Investor A
Shareholders:
From net investment
income................ (2,580) (9,052) (8,431) (3,428) (8,537) (9,313)
Distributions to
Investor B
Shareholders(a):
From net investment
income................ (11) (6) -- -- -- --
Distributions to
Institutional
Shareholders:
From net investment
income................ (16,893) (31,193) (33,589) (4,553) (8,396) (10,974)
----------- ----------- ----------- --------- --------- -----------
Change in net assets
from shareholder
distributions.......... (19,484) (40,251) (42,020) (7,981) (16,933) (20,287)
----------- ----------- ----------- --------- --------- -----------
Capital Transactions:
Proceeds from shares
issued................ 898,825 2,013,196 1,684,473 429,342 878,515 1,128,455
Dividends reinvested... 3,372 8,892 8,193 557 1,315 1,537
Cost of shares
redeemed.............. (1,068,567) (1,985,192) (1,563,855) (599,209) (947,523) (1,102,140)
----------- ----------- ----------- --------- --------- -----------
Change in net assets
from capital
transactions........... (166,370) 36,896 128,811 (169,310) (67,693) 27,852
----------- ----------- ----------- --------- --------- -----------
Change in net assets.... (166,370) 36,898 128,817 (169,311) (67,650) 27,849
Net Assets:
Beginning of period.... 909,268 872,370 743,553 354,594 422,244 394,395
----------- ----------- ----------- --------- --------- -----------
End of period.......... $ 742,898 $ 909,268 $ 872,370 $ 185,283 $ 354,594 $ 422,244
=========== =========== =========== ========= ========= ===========
</TABLE>
- -------
(a)Fund commenced offering of Investor B shares on September 26, 1997.
See notes to financial statements.
31
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Tax-Free Fund Treasury Fund
------------------------------------ ---------------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- --------- ------------ ------------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 1,923 $ 4,624 $ 4,686 $ 12,800 $ 23,648 $ 19,396
Net realized gains
(losses) from
investment
transactions.......... 3 (1) (28) 22 31 46
--------- --------- --------- ----------- ----------- -----------
Change in net assets
resulting from
operations............. 1,926 4,623 4,658 12,822 23,679 19,442
--------- --------- --------- ----------- ----------- -----------
Distributions to
Investor A
Shareholders:
From net investment
income................ (569) (1,482) (1,450) (5,056) (8,907) (6,104)
From net realized gains
from investment
transactions.......... -- -- -- -- (20) --
Distributions to
Institutional
Shareholders:
From net investment
income................ (1,354) (3,142) (3,236) (7,744) (14,741) (13,292)
From net realized gains
from investment
transactions.......... -- -- -- -- (32) --
--------- --------- --------- ----------- ----------- -----------
Change in net assets
from shareholder
distributions.......... (1,923) (4,624) (4,686) (12,800) (23,700) (19,396)
--------- --------- --------- ----------- ----------- -----------
Capital Transactions:
Proceeds from shares
issued................ 152,903 442,581 407,038 1,322,375 1,682,410 1,723,599
Dividends reinvested... 443 914 824 201 554 627
Cost of shares
redeemed.............. (198,947) (440,676) (399,351) (1,588,728) (1,621,534) (1,606,028)
--------- --------- --------- ----------- ----------- -----------
Change in net assets
from capital
transactions........... (45,601) 2,819 8,511 (266,152) 61,430 118,198
--------- --------- --------- ----------- ----------- -----------
Change in net assets.... (45,598) 2,818 8,483 (266,130) 61,409 118,244
Net Assets:
Beginning of period.... 159,168 156,350 147,867 561,792 500,383 382,139
--------- --------- --------- ----------- ----------- -----------
End of period.......... $ 113,570 $ 159,168 $ 156,350 $ 295,662 $ 561,792 $ 500,383
========= ========= ========= =========== =========== ===========
</TABLE>
See notes to financial statements.
32
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Capitalization Fund Mid Capitalization Fund
------------------------------------- ------------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- ---------- ------------ ------------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (2,786) $ (8,901) $ (7,542) $ (2,336) $ (5,117) $ (5,674)
Net realized gains
(losses) from
investment
transactions.......... (5,825) 124,813 47,197 34,208 108,493 90,985
Net change in
unrealized
appreciation
(depreciation) from
investments .......... (85,307) (119,617) (53,844) (83,661) 3,191 (46,690)
--------- --------- ---------- --------- --------- ---------
Change in net assets
resulting from
operations............. (93,918) (3,705) (14,189) (51,789) 106,567 38,621
--------- --------- ---------- --------- --------- ---------
Distributions to
Investor A
shareholders:
From net realized gains
from investment
transactions.......... -- (8,917) (25,439) -- (15,794) (23,501)
Distributions to
Investor B
shareholders:
From net realized gains
from investment
transactions.......... -- (2,324) (5,903) -- (4,492) (5,643)
Distributions to
Investor C
shareholders*:
From net realized gains
from investment
transactions.......... -- (759) (1,578) -- (409) (458)
Distributions to
Institutional
shareholders:
From net realized gains
from investment
transactions.......... -- (27,708) (78,723) -- (97,196) (167,629)
--------- --------- ---------- --------- --------- ---------
Change in net assets
from shareholder
distributions.......... -- (39,708) (111,643) -- (117,891) (197,231)
--------- --------- ---------- --------- --------- ---------
Capital Transactions:
Proceeds from shares
issued................ 361,792 901,362 1,051,669 133,074 344,908 344,245
Dividends reinvested... -- 31,608 85,417 -- 87,033 140,424
Cost of shares
redeemed.............. (535,824) (995,717) (909,908) (208,644) (435,074) (411,014)
--------- --------- ---------- --------- --------- ---------
Change in net assets
from share
transactions........... (174,032) (62,747) 227,178 (75,570) (3,133) 73,655
--------- --------- ---------- --------- --------- ---------
Change in net assets.... (267,950) (106,160) 101,346 (127,359) (14,457) (84,955)
Net Assets:
Beginning of period.... 747,129 853,289 751,943 634,271 648,728 733,683
--------- --------- ---------- --------- --------- ---------
End of period.......... $ 479,179 $ 747,129 $ 853,289 $ 506,912 $ 634,271 $ 648,728
========= ========= ========== ========= ========= =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
33
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Large Capitalization Fund International Discovery Fund
------------------------------------ ------------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- --------- ------------ ------------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (644) $ (751) $ 622 $ (530) $ (1,318) $ (577)
Net realized gains
(losses) from
investment and foreign
currency transactions. 13,437 23,283 16,112 (10,962) 27,623 12,746
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 32,677 63,562 75,519 (24,256) (1,902) 55,463
-------- --------- --------- -------- -------- ---------
Change in net assets
resulting from
operations............. 45,470 86,094 92,253 (35,748) 24,403 67,632
-------- --------- --------- -------- -------- ---------
Distributions to
Investor A
shareholders:
From net investment
income................ -- -- (4) -- -- --
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*:
From net realized gains
from investment and
foreign currency
transactions.......... -- (14) -- -- (32) --
Distributions to
Institutional
shareholders:
From net investment
income................ -- -- (728) (64) -- --
In excess of net
investment income..... -- -- -- -- -- (108)
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) (64) (15,129) (108)
-------- --------- --------- -------- -------- ---------
Capital Transactions:
Proceeds from shares
issued................ 35,915 87,053 151,936 16,777 68,864 188,198
Dividends reinvested... -- 26,512 2,462 37 9,533 62
Cost of shares
redeemed.............. (43,700) (125,548) (165,363) (64,699) (91,674) (180,358)
-------- --------- --------- -------- -------- ---------
Change in net assets
from share
transactions........... (7,785) (11,983) (10,965) (47,885) (13,277) 7,902
-------- --------- --------- -------- -------- ---------
Change in net assets.... 37,685 35,466 78,179 (83,697) (4,003) 75,426
Net Assets:
Beginning of period.... 390,286 354,820 276,641 485,056 489,059 413,633
-------- --------- --------- -------- -------- ---------
End of period.......... $427,971 $ 390,286 $ 354,820 $401,359 $485,056 $ 489,059
======== ========= ========= ======== ======== =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
34
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Limited Maturity Intermediate Government
Bond Fund Obligations Fund
----------------------------------- -----------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- -------- ------------ ------------- --------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 5,342 $ 9,501 $ 9,196 $ 4,530 $ 10,166 $ 12,905
Net realized gains
(losses) from
investment
transactions.......... 728 (546) (256) 571 2,682 1,200
Net change in
unrealized
appreciation
(depreciation) from
investments .......... 573 860 467 2,931 675 (461)
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 6,643 9,815 9,407 8,032 13,523 13,644
-------- -------- -------- -------- -------- --------
Distributions to
Investor A
shareholders:
From net investment
income................ (1,012) (1,734) (1,142) (316) (822) (1,130)
In excess of net
investment income..... -- (11) -- -- -- --
Tax return of capital.. -- (4) (6) -- (16) --
Distributions to
Investor B
shareholders:
From net investment
income................ (32) (62) (78) (34) (87) (90)
In excess of net
investment income..... -- -- -- -- -- --
Tax return of capital.. -- -- -- -- (2) --
Distributions to
Investor C
shareholders*:
From net investment
income................ (23) (61) (1) (3) (10) (7)
Distributions to
Institutional
shareholders:
From net investment
income................ (4,275) (7,645) (8,051) (4,183) (9,353) (11,898)
In excess of net
investment income..... -- (48) -- -- -- --
Tax return of capital.. -- (16) (29) -- (174) --
-------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (5,342) (9,581) (9,307) (4,536) (10,464) (13,125)
-------- -------- -------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 25,989 94,826 67,317 7,934 32,342 28,502
Dividends reinvested... 2,417 4,297 4,250 1,421 3,151 3,965
Cost of shares
redeemed.............. (48,308) (68,564) (59,256) (26,106) (59,097) (74,602)
-------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... (19,902) 30,559 12,311 (16,751) (23,604) (42,135)
-------- -------- -------- -------- -------- --------
Change in net assets.... (18,601) 30,793 12,411 (13,255) (20,545) (41,616)
Net Assets:
Beginning of period.... 195,833 165,040 152,629 188,029 208,574 250,190
-------- -------- -------- -------- -------- --------
End of period.......... $177,232 $195,833 $165,040 $174,774 $188,029 $208,574
======== ======== ======== ======== ======== ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
35
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Government
Income Fund Bond Fund
----------------------------------- ------------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- -------- ------------ ------------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 6,854 $ 16,234 $ 16,601 $ 14,054 $ 29,000 $ 33,325
Net realized gains
(losses) from
investment
transactions.......... (249) (115) (2,156) 4,151 14,967 5,014
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,493 2,119 (99) 3,259 2,035 4,705
-------- -------- -------- -------- --------- ---------
Change in net assets
resulting from
operations............. 8,098 18,238 14,346 21,464 46,002 43,044
-------- -------- -------- -------- --------- ---------
Distributions to
Investor A
shareholders:
From net investment
income................ (1,445) (3,394) (3,562) (427) (1,029) (1,195)
Tax return of capital.. -- (266) (661) -- -- --
Distributions to
Investor B
shareholders:
From net investment
income................ (565) (1,251) (1,259) (146) (302) (256)
Tax return of capital.. -- (111) (233) -- -- --
Distributions to
Investor C
shareholders*:
From net investment
income................ (3) (8) (4) (7) (26) (17)
Tax return of capital.. -- (1) (1) -- -- --
Distributions to
Institutional
shareholders:
From net investment
income................ (4,840) (9,477) (9,151) (13,678) (27,889) (31,847)
Tax return of capital.. -- (718) (1,697) -- -- --
-------- -------- -------- -------- --------- ---------
Change in net assets
from shareholder
distributions.......... (6,853) (15,226) (16,568) (14,258) (29,246) (33,315)
-------- -------- -------- -------- --------- ---------
Capital Transactions:
Proceeds from shares
issued................ 15,397 63,657 72,865 25,726 84,885 99,111
Dividends reinvested... 1,819 4,148 4,289 9,500 19,777 23,608
Cost of shares
redeemed.............. (40,336) (61,398) (46,463) (61,820) (134,070) (188,258)
-------- -------- -------- -------- --------- ---------
Change in net assets
from share
transactions........... (23,120) 6,407 30,691 (26,594) (29,408) (65,539)
-------- -------- -------- -------- --------- ---------
Change in net assets.... (21,875) 9,419 28,469 (19,388) (12,652) (55,810)
Net Assets:
Beginning of period.... 240,379 230,960 202,491 505,685 518,337 574,147
-------- -------- -------- -------- --------- ---------
End of period.......... $218,504 $240,379 $230,960 $486,297 $ 505,685 $ 518,337
======== ======== ======== ======== ========= =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
36
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Municipal Michigan Municipal
Bond Fund Bond Fund
----------------------------------- -----------------------------------
Six months Eleven months Year Six months Eleven months Year
ended ended ended ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997 1998 1998 1997
------------ ------------- -------- ------------ ------------- --------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 2,414 $ 4,984 $ 6,295 $ 5,067 $ 9,887 $ 10,862
Net realized gains
(losses) from
investment
transactions.......... 228 2,879 798 811 1,120 370
Net change in
unrealized
appreciation
(depreciation) from
investments........... 1,612 (21) 950 1,931 3,953 2,487
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 4,254 7,842 8,043 7,809 14,960 13,719
-------- -------- -------- -------- -------- --------
Distributions to
Investor A
shareholders:
From net investment
income................ (149) (361) (344) (695) (1,611) (1,596)
In excess of net
investment income..... -- (5) -- -- (6) --
From net realized gains
from investment
transactions.......... -- (172) (42) -- (112) (125)
Distributions to
Investor B
shareholders:
From net investment
income................ (9) (25) (28) (59) (127) (118)
In excess of net
investment income..... -- -- -- -- (1) --
From net realized gains
from investment
transactions.......... -- (13) (5) -- (10) (11)
Distributions to
Institutional
shareholders:
From net investment
income................ (2,262) (5,004) (5,598) (4,346) (8,863) (8,576)
In excess of net
investment income..... -- (69) -- -- (34) --
From net realized gains
from investment
transactions.......... -- (2,220) (635) -- (561) (626)
-------- -------- -------- -------- -------- --------
Change in net assets
from shareholder
distributions......... (2,420) (7,869) (6,652) (5,100) (11,325) (11,052)
-------- -------- -------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 6,564 17,096 30,200 12,617 49,586 43,600
Dividends reinvested... 297 949 686 1,162 2,688 2,460
Cost of shares
redeemed.............. (18,122) (29,067) (28,261) (30,593) (43,899) (37,409)
-------- -------- -------- -------- -------- --------
Change in net assets
from share
transactions........... (11,261) (11,022) 2,625 (16,814) 8,375 8,651
-------- -------- -------- -------- -------- --------
Change in net assets.... (9,427) (11,049) 4,016 (14,105) 12,010 11,318
Net Assets:
Beginning of period.... 134,064 145,113 141,097 248,765 236,755 225,437
-------- -------- -------- -------- -------- --------
End of period.......... $124,637 $134,064 $145,113 $234,660 $248,765 $236,755
======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
37
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Conservative Balanced
Allocation Fund Allocation Fund
-------------------------------------- -----------------------------------
Six months Eleven months December 30 Six months Eleven months Year
ended ended 1996 to ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997(a) 1998 1998 1997
------------ ------------- ----------- ------------ ------------- --------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 312 $ 530 $ 139 $ 3,290 $ 6,604 $ 5,337
Net realized gains
(losses) from
investment and foreign
currency transactions. 468 387 (102) 966 8,982 12,043
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (168) 692 335 (1,956) 16,238 5,097
------- ------- ------- -------- -------- --------
Change in net assets
resulting from
operations............. 612 1,609 372 2,300 31,824 22,477
------- ------- ------- -------- -------- --------
Distributions to
Investor A
shareholders:
From net investment
income................ -- -- -- (202) (460) (454)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (504) (1,957)
Distributions to
Investor B
shareholders:
From net investment
income................ -- -- -- (50) (125) (90)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (192) (547)
Distributions to
Investor C
shareholders*:
From net investment
income................ -- -- -- (3) (16) (10)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (26) (56)
Distributions to
Institutional
shareholders:
From net investment
income................ (309) (515) (122) (3,072) (6,660) (4,750)
From net realized gains
from investment and
foreign currency
transactions.......... -- (98) -- -- (6,807) (13,278)
------- ------- ------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (309) (613) (122) (3,327) (14,790) (21,142)
------- ------- ------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 2,019 9,933 11,873 19,914 72,317 167,477
Dividends reinvested... 246 610 122 3,026 13,392 17,657
Cost of shares
redeemed.............. (911) (4,795) (1,958) (52,383) (83,157) (50,433)
------- ------- ------- -------- -------- --------
Change in net assets
from share
transactions........... 1,354 5,748 10,037 (29,443) 2,552 134,701
------- ------- ------- -------- -------- --------
Change in net assets.... 1,657 6,744 10,287 (30,470) 19,586 136,036
Net Assets:
Beginning of period.... 17,031 10,287 -- 290,852 271,266 135,230
------- ------- ------- -------- -------- --------
End of period.......... $18,688 $17,031 $10,287 $260,382 $290,852 $271,266
======= ======= ======= ======== ======== ========
</TABLE>
- -------
(a) Period from commencement of operations.
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
38
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Fund Income Fund
-------------------------------------- -----------------------------------
Six months Eleven months December 30 Six months Eleven months Year
ended ended 1996 to ended ended ended
November 30, May 31, June 30, November 30, May 31, June 30,
1998 1998 1997(a) 1998 1998 1997
------------ ------------- ----------- ------------ ------------- --------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ 152 $ 412 $ 232 $ 2,852 $ 5,994 $ 7,779
Net realized gains
(losses) from
investment and foreign
currency transactions. (298) 1,126 (648) 51,421 48,190 49,802
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (626) 2,816 2,394 (53,843) 13,536 38,267
------- ------- ------- -------- -------- --------
Change in net assets
resulting from
operations............. (772) 4,354 1,978 430 67,720 95,848
------- ------- ------- -------- -------- --------
Distributions to
Investor A
shareholders:
From net investment
income................ -- -- -- (698) (1,126) (1,408)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (15,973) (8,386)
Distributions to
Investor B
shareholders:
From net investment
income................ -- -- -- (109) (127) (150)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (3,858) (1,419)
Distributions to
Investor C
shareholders*:
From net investment
income................ -- -- -- (2) (4) (4)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (116) (25)
Distributions to
Institutional
shareholders:
From net investment
income................ (138) (437) (195) (2,249) (3,961) (6,142)
In excess of net
investment income..... -- (10) -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- -- (48,180) (32,123)
------- ------- ------- -------- -------- --------
Change in net assets
from shareholder
distributions.......... (138) (447) (195) (3,058) (73,345) (49,657)
------- ------- ------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 1,808 9,513 39,922 17,623 41,683 78,441
Dividends reinvested... 136 446 195 1,270 31,258 18,619
Cost of shares
redeemed.............. (5,247) (19,093) (2,857) (59,791) (89,674) (138,602)
------- ------- ------- -------- -------- --------
Change in net assets
from share
transactions........... (3,303) (9,134) 37,260 (40,898) (16,733) (41,542)
------- ------- ------- -------- -------- --------
Change in net assets.... (4,213) (5,227) 39,043 (43,526) (22,358) 4,649
Net Assets:
Beginning of period.... 33,816 39,043 -- 414,759 437,117 432,468
------- ------- ------- -------- -------- --------
End of period.......... $29,603 $33,816 $39,043 $371,233 $414,759 $437,117
======= ======= ======= ======== ======== ========
</TABLE>
- -------
(a) Period from commencement of operations.
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
39
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid Large Limited
Capitalization Capitalization Capitalization Maturity
Fund Fund Fund Bond Fund
-------------- -------------- -------------- ---------
<S> <C> <C> <C> <C>
Cash flows from
operating activities:
Total Net Investment
Income (loss)......... $ (2,786) $ (2,336) $ (644) $ 5,342
Adjustments to reconcile
net investment income
to net cash provided
(used) by operating
activities:
Purchases of
investments........... (3,117,869) (2,119,327) (277,833) (528,559)
Proceeds from
disposition of
investment securities. 3,291,939 2,191,834 286,252 547,588
Decrease (increase) in
investments purchased
with cash collateral
from securities
lending............... (107,297) 69,317 41,217 10,079
Decrease (increase) in
dividends and interest
receivable............ (2) (115) (71) 652
Increase (decrease) in
payable for return of
collateral received
from securities
lending............... 107,297 (69,317) (41,217) (10,079)
Increase (decrease) in
accrued expenses...... 19 48 71 25
Net
amortization/accretion
from investments...... (103) (86) (2) --
Increase in variation
margin payable........ 4,953 7,330 -- --
----------- ----------- --------- ---------
Net cash provided
(used) by operating
activities.......... 176,151 77,348 7,773 25,048
----------- ----------- --------- ---------
Cash flows from
financing activities:
Proceeds from shares
issued................ 361,741 133,108 35,936 26,167
Payment of shares
redeemed.............. (536,200) (208,889) (43,709) (48,290)
Cash distributions
paid.................. -- -- -- (2,925)
----------- ----------- --------- ---------
Net cash provided
(used) by financing
activities.......... (174,459) (75,781) (7,773) (25,048)
----------- ----------- --------- ---------
Net increase (decrease)
in cash................ 1,692 1,567 -- --
Cash:
Beginning balance...... -- 1 -- --
----------- ----------- --------- ---------
Ending balance......... $ 1,692 $ 1,568 $ -- $ --
=========== =========== ========= =========
</TABLE>
Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions of $0, $0, $0 and $2,417, respectively.
See notes to financial statements.
40
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Intermediate U.S.
Government Government Conservative
Obligations Income Bond Allocation
Fund Fund Fund Fund
------------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
Cash flows from operating
activities:
Total Net Investment
Income (loss)............ $ 4,530 $ 6,854 $ 14,054 $ 312
Adjustments to reconcile
net investment income to
net cash provided (used)
by operating activities:
Purchases of investments.. (221,475) (160,333) (2,424,668) (106,890)
Proceeds from disposition
of investment
securities............... 238,266 183,393 2,450,407 105,501
Decrease (increase) in
investments purchased
with cash collateral
from securities lending.. (3,516) (15,525) 20,829 (2,207)
Decrease (increase) in
dividends and interest
receivable............... 80 193 1,663 43
Increase (decrease) in
payable for return of
collateral received from
securities lending....... 3,516 15,525 (20,829) 2,207
Increase (decrease) in
accrued expenses......... 25 30 43 1
Net
amortization/accretion
from investments......... (175) (226) (528) (13)
--------- --------- ----------- ---------
Net cash provided (used)
by operating
activities............. 21,251 29,911 40,971 (1,046)
--------- --------- ----------- ---------
Cash flows from financing
activities:
Proceeds from shares
issued................... 7,933 15,434 25,726 2,019
Payment of shares
redeemed................. (26,069) (40,312) (61,940) (911)
Cash distributions paid... (3,115) (5,034) (4,758) (63)
--------- --------- ----------- ---------
Net cash provided (used)
by financing
activities............. (21,251) (29,912) (40,972) 1,045
--------- --------- ----------- ---------
Net increase (decrease) in
cash...................... -- (1) (1) (1)
Cash:
Beginning balance......... -- 1 1 1
--------- --------- ----------- ---------
Ending balance............ $ -- $ -- $ -- $ --
========= ========= =========== =========
</TABLE>
Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions of $1,421, $1,819, $9,500 and $246, respectively.
See notes to financial statements.
41
<PAGE>
- --------------------------------------------------------------------------------
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Six Months Ended November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Balanced Aggressive Equity
Allocation Allocation Income
Fund Fund Fund
---------- ---------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Total Net Investment Income (loss).......... $ 3,290 $ 152 $ 2,852
Adjustments to reconcile net investment
income to net cash provided (used) by
operating activities:
Purchases of investments.................... (808,968) (97,655) (482,084)
Proceeds from disposition of investment
securities................................. 837,871 100,910 522,619
Decrease (increase) in investments
purchased with cash collateral from
securities lending......................... (10,513) 1,905 29,747
Decrease (increase) in dividends and
interest receivable........................ 611 15 433
Increase (decrease) in payable for return
of collateral received from securities
lending.................................... 10,513 (1,905) (29,747)
Increase (decrease) in accrued expenses..... 63 21 49
Net amortization/accretion from
investments................................ (16) (3) --
--------- -------- ---------
Net cash provided (used) by operating
activities............................... 32,851 3,440 43,869
--------- -------- ---------
Cash flows from financing activities:
Proceeds from shares issued................. 19,790 1,808 17,697
Payment of shares redeemed.................. (52,341) (5,247) (59,779)
Cash distributions paid..................... (301) (2) (1,788)
--------- -------- ---------
Net cash provided (used) by financing
activities............................... (32,852) (3,441) (43,870)
--------- -------- ---------
Net increase (decrease) in cash.............. (1) (1) (1)
Cash:
Beginning balance........................... 1 1 1
--------- -------- ---------
Ending balance.............................. $ -- $ -- $ --
========= ======== =========
</TABLE>
Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions of $3,026, $2 and $1,270, respectively.
See notes to financial statements.
42
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Prime Obligations Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper (80.3%):
Agriculture (0.7%):
$ 5,000 Cargill, 4.97%, 3/11/99.................................. $ 4,931
---------
Automotive (2.7%):
5,000 Daimler Benz, 5.17%, 1/21/99............................. 4,963
5,000 Daimler Benz, 5.15%, 3/10/99............................. 4,929
10,000 Daimler Benz, 5.01%, 3/19/99............................. 9,850
---------
19,742
---------
Banking (1.3%):
5,000 Bank America Corp., 5.23%, 12/3/98....................... 4,998
5,000 First Chicago NBD Corp., 5.06%, 1/27/99.................. 4,960
---------
9,958
---------
Chemicals and Allied Products (3.4%):
5,000 Akzo Nobel, Inc., 5.08%, 1/26/99......................... 4,960
5,000 Akzo Nobel, Inc., 5.25%, 2/12/99......................... 4,947
5,000 Akzo Nobel, Inc., 5.07%, 3/23/99......................... 4,921
5,550 Monsanto Co., 5.50%, 12/18/98............................ 5,536
5,000 Monsanto Co., 5.02%, 3/9/99.............................. 4,932
---------
25,296
---------
Diversified Operation (4.7%):
5,000 BTR Dunlop Finance Inc., 5.05%, 12/17/98................. 4,989
5,000 GE Capital, 5.48%, 1/20/99............................... 4,962
5,000 GE Capital, 5.49%, 2/1/99................................ 4,953
5,000 GE Capital, 5.20%, 2/9/99................................ 4,949
5,000 GE Capital, 5.44%, 2/10/99............................... 4,946
5,000 GE Capital, 5.35%, 2/16/99............................... 4,943
5,000 GE Capital, 5.14%, 3/15/99............................... 4,926
---------
34,668
---------
Education (0.7%):
5,000 Stanford University, 5.42%, 2/23/99...................... 4,937
---------
Electric Utility (2.0%):
5,000 Southern Co., 5.25%, 2/5/99.............................. 4,952
5,000 Southern Co., 5.10%, 11/18/98............................ 4,941
5,000 Vattenfall Treasury, 5.21%, 1/5/99....................... 4,975
---------
14,868
---------
Electrical & Electronic (2.7%):
5,000 Avnet, 5.25%, 1/20/99.................................... 4,964
5,000 Avnet, 5.12%, 2/25/99.................................... 4,939
10,000 Eaton, 5.13%, 3/11/99.................................... 9,857
---------
19,760
---------
Finance - Conduit (5.3%):
5,000 Ciesco, 5.27%, 2/10/99................................... 4,948
5,000 Ciesco, 5.15%, 2/17/99................................... 4,944
5,000 Delaware Funding, 5.22%, 1/6/99.......................... 4,975
5,000 Delaware Funding, 5.15%, 1/20/99......................... 4,964
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Finance - Conduit, continued:
$ 5,000 Delaware Funding, 5.28%, 1/28/99........................ $ 4,957
5,000 Preferred Receivables, 5.21%, 1/11/99................... 4,970
5,000 Preferred Receivables, 5.20%, 1/11/99................... 4,971
4,365 Preferred Receivables, 5.20%, 1/19/99................... 4,334
---------
39,063
---------
Financial Services (30.2%):
5,000 ABB Treasury, 5.05%, 2/17/99............................ 4,945
5,000 ABB Treasury, 4.93%, 3/24/99............................ 4,923
5,000 ABB Treasury, 4.95%, 3/25/99............................ 4,922
5,000 Abbey National, 5.50%, 2/4/99........................... 4,950
5,000 Abbey National, 5.20%, 2/10/99.......................... 4,949
5,000 Abbey National, 5.06%, 2/18/99.......................... 4,944
5,000 ABN-Amro North America Finance Inc., 5.14%, 1/14/99..... 4,969
5,000 Associates Corporation of North America, 5.03%, 1/28/99. 4,959
5,000 Associates First Capital, 5.18%, 2/11/99................ 4,948
5,000 Associates First Capital, 5.18%, 2/17/99................ 4,944
5,000 Avco Financial Services Inc., 5.44%, 12/3/98............ 4,998
5,000 Avco Financial Services Inc., 5.15%, 2/2/99............. 4,955
5,000 Bear Stearns Cos. Inc., 5.46%, 2/3/99................... 4,951
5,000 Block Financial Corp., 5.10%, 2/19/98................... 4,943
10,000 Block Financial Corp., 5.15%, 2/26/99................... 9,876
5,000 Cemex South America, 5.50%, 12/4/98..................... 4,998
5,000 Corporate Asset Funding, 5.13%, 1/19/99................. 4,965
5,000 Corporate Asset Funding, 5.30%, 2/1/99.................. 4,954
5,000 Corporate Asset Funding, 5.10%, 2/2/99.................. 4,955
5,000 Credit Suisse Financial Services Inc., 5.18%, 2/9/99.... 4,950
10,000 Ford Motor Credit Corp., 5.16%, 12/1/98................. 10,000
10,000 Ford Motor Credit Corp., 5.25%, 1/21/99................. 9,926
5,000 Ford Motor Credit Corp., 4.95%, 3/18/99................. 4,926
5,000 Franklin Resources, 4.88%, 12/1/98...................... 5,000
5,000 Franklin Resources, 5.37%, 12/10/98..................... 4,993
5,000 General Motors Acceptance Corp., 5.49%, 1/20/99......... 4,962
10,000 General Motors Acceptance Corp., 5.06%, 1/21/99......... 9,928
6,000 General Motors Acceptance Corp., 5.14%, 1/26/99......... 5,952
5,000 Goldman Sachs, 5.26%, 3/3/99............................ 4,933
5,000 Goldman Sachs, 5.10%, 3/17/99........................... 4,925
5,000 Merrill Lynch & Co., Inc., 5.50%, 1/4/99................ 4,974
5,000 Merrill Lynch & Co., Inc., 5.10%, 1/28/99............... 4,959
5,000 Merrill Lynch & Co., Inc., 5.01%, 2/11/99............... 4,950
5,000 Morgan Stanley, 5.43%, 2/12/99.......................... 4,945
</TABLE>
Continued
43
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Prime Obligations Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Financial Services, continued:
$ 5,000 National Rural Utilities Cooperative Finance Corp.,
5.10%, 1/28/99......................................... $ 4,959
5,000 National Rural Utilities Cooperative Finance Corp.,
5.05%, 2/12/99......................................... 4,949
6,300 New Center Asset Trust, 5.43%, 12/17/98................. 6,285
5,000 New York Life, 5.18%, 2/23/99........................... 4,940
5,000 New York Life, 5.12%, 3/17/99........................... 4,925
10,000 UBS Finance, 5.48%, 1/8/99.............................. 9,942
---------
225,371
---------
Financial - Banking (1.3%):
10,000 Cregem North America, 5.49%, 1/5/99..................... 9,947
---------
Food & Beverage (2.0%):
5,000 Diageo, 5.20%, 12/11/98................................. 4,992
5,000 Diageo, 5.47%, 1/14/99.................................. 4,967
5,000 Diageo, 5.18%, 2/9/99................................... 4,950
---------
14,909
---------
Food and Kindred Products (1.8%):
3,500 Archer Daniels Midland Co., 5.06%, 2/2/99............... 3,469
5,000 Archer Daniels Midland Co., 5.02%, 4/1/99............... 4,916
5,000 Campbell Soup, 5.42%, 2/24/99........................... 4,936
---------
13,321
---------
Foreign Banking & Financial Services (7.3%):
5,000 Commerz Bank, 5.45%, 2/12/99............................ 4,945
5,000 Commerz Bank, 5.16%, 1/6/99............................. 4,974
5,000 Commerz Bank, 5.07%, 1/13/99............................ 4,970
5,000 Commerz Bank, 5.18%, 1/20/99............................ 4,964
5,000 Deutche Bank, 5.22%, 1/5/99............................. 4,975
5,000 International Nederladen, 5.49%, 1/27/99................ 4,957
5,000 Nordbanken, 5.07%, 12/14/98............................. 4,990
5,000 Nordbanken, 5.48%, 1/20/99.............................. 4,962
5,000 Svenska Handelsbanken, 5.19%, 1/14/99................... 4,968
5,000 Svenska Handlesbanken, 5.19%, 1/13/99................... 4,969
5,000 Westpac Capital Corp., 5.47%, 1/13/99................... 4,967
---------
54,641
---------
Gas Utility (0.7%):
5,000 Deer Park Refining, 5.70%, 12/9/98...................... 5,000
---------
Glass Products (1.3%):
5,000 Guardian Industries, 5.35%, 12/18/98.................... 4,987
5,000 Guardian Industries, 5.20%, 1/15/99..................... 4,968
---------
9,955
---------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Insurance (2.7%):
$ 5,000 Allianz of America Finance Corp., 5.20%, 1/8/99.......... $ 4,973
5,000 Allstate Corp., 5.32%, 1/20/99........................... 4,963
5,000 Allstate Corp., 5.17%, 1/28/99........................... 4,958
5,000 American General Finance Corp., 5.07%, 2/25/99........... 4,939
---------
19,833
---------
Machinery & Equipment (2.0%):
5,000 Caterpillar Financial, 5.45%, 2/16/99.................... 4,942
5,000 Caterpillar Financial, 5.22%, 3/10/99.................... 4,928
5,000 John Deere & Co., 5.19%, 2/9/99.......................... 4,949
14,819
---------
Metals & Mining (1.3%):
5,000 Rio Tinto American, 5.13%, 12/21/98...................... 4,986
5,000 Rio Tinto American, 5.13%, 1/20/99....................... 4,964
---------
9,950
---------
Oil & Exploration, Production & Services (0.7%):
5,000 Pemex, 5.09%, 12/21/98................................... 4,986
---------
Oil & Gas (3.5%):
6,500 Burmah Castrol Finance PLC, 5.11%, 1/27/99............... 6,447
5,000 Explorer Pipeline, 5.30%, 1/20/99........................ 4,963
5,000 Explorer Pipeline, 5.17%, 1/27/99........................ 4,959
5,000 Statoil, 5.32%, 1/22/99.................................. 4,962
5,000 Statoil, 5.13%, 2/18/99.................................. 4,961
---------
26,292
---------
Pharmaceuticals (1.3%):
5,000 Glaxo Wellcome, 5.09%, 2/25/99........................... 4,939
5,000 Johnson & Johnson, 5.08%, 1/29/99........................ 4,959
---------
9,898
---------
Telecommunications (0.7%):
5,000 BellSouth Telecommunications Inc., 5.42%, 2/17/99........ 4,941
---------
Total Commercial Paper 597,086
---------
Corporate Bonds (10.8%):
Financial & Insurance (0.7%):
5,000 SMM Trust, 5.50%, 3/23/98................................ 5,000
---------
Financial Services (8.8%):
10,000 All State Funding, 5.80%, 12/1/98........................ 10,000
10,000 All State Funding, 5.82%*, 8/31/99....................... 10,000
10,000 Key Bank North America, 5.18%*, 9/23/99.................. 9,996
</TABLE>
Continued
44
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Prime Obligations Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$ 10,000 Merrill Lynch & Co., Inc., 5.26%*, 9/29/99............... $ 10,000
10,000 Morgan Guarantee Trust, 5.35%*, 11/29/99................. 10,000
5,000 Travelers Funding Agreement, 5.36%, 3/26/99.............. 5,000
10,000 Travelers Funding Agreement, 5.51%*, 8/17/99............. 10,000
---------
64,996
---------
Insurance (1.3%):
10,000 John Hancock Mutual, 5.28%*, 1/22/99..................... 10,000
---------
Total Corporate Bonds 79,996
---------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------ ---------
<C> <S> <C>
Repurchase Agreements (9.2%):
$ 43,250 Lehman Brothers, 5.40%, 12/1/98, (Collateralized by
$44,210, Federal National Mortgage Assoc. Notes,
0.00%--6.32%, 5/4/99-5/23/05,
market value--$44,119)............................... $ 43,250
25,000 Morgan Stanley, 5.73%, 12/18/98, (Collateralized by
$1,500, Aeltus CBOII Ltd., 0.00%, 8/6/09, market
value--$1,386 and $29,000, Capital One Financial,
7.13%, 8/1/08, market value--$26,886) ............... 25,000
---------
Total Repurchase Agreements 68,250
---------
Total Investments (Cost $745,332)(a)--100.3% 745,332
---------
Liabilities in excess of other assets (0.3)% (2,434)
---------
Total Net Assets--100.0% $ 742,898
=========
</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
November 30,1998.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
45
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
U.S. Government Obligations Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
U.S. Government Agencies (83.1%):
Federal Home Loan Bank (26.7%):
$ 5,000 4.77%, 12/4/98............................................ $ 4,998
5,000 5.40%, 12/22/98........................................... 4,999
5,000 5.36%, 1/4/99............................................. 4,975
5,000 5.37%, 1/8/99............................................. 4,972
5,000 5.37%, 1/20/99............................................ 4,963
4,782 5.35%, 1/27/99............................................ 4,741
5,000 5.35%, 2/3/99............................................. 4,952
5,000 4.68%, 2/10/99............................................ 4,954
5,000 5.35%, 2/17/99............................................ 4,942
5,000 5.13%*, 11/10/99.......................................... 4,997
--------
49,493
--------
Federal Home Loan Mortgage Corp.(26.7%):
5,000 5.37%, 12/2/98............................................ 4,999
5,000 4.79%, 12/18/98........................................... 4,989
5,000 5.04%, 1/22/99............................................ 4,964
5,000 4.76%, 2/12/99............................................ 4,952
5,000 5.02%, 2/16/99............................................ 4,946
5,000 4.96%, 2/19/99............................................ 4,945
10,000 5.00%, 2/25/99............................................ 9,881
5,000 5.11%, 3/22/99............................................ 4,921
5,000 4.90%, 4/12/99............................................ 4,910
--------
49,507
--------
Federal National Mortgage Assoc. (24.3%):
5,000 5.34%, 12/8/98............................................ 4,995
5,000 5.39%, 12/15/98........................................... 4,990
5,000 5.35%, 1/4/99............................................. 4,975
5,000 5.05%, 1/7/99............................................. 4,974
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. Government Agencies, continued:
Federal National Mortgage Assoc., continued:
$ 5,000 4.84%, 1/27/99........................................... $ 4,962
5,000 4.65%, 2/9/99............................................ 4,955
5,000 4.95%*, 3/3/99........................................... 4,999
5,000 5.00%, 3/15/99........................................... 4,928
5,250 5.65%, 4/9/99............................................ 5,250
--------
45,028
--------
Student Loan Marketing Assoc. (2.7%):
5,000 5.31%*, 11/12/99......................................... 5,000
--------
Tennessee Valley Authority (2.7%):
5,000 4.91%, 2/22/99........................................... 4,943
--------
Total U.S. Government Agencies 153,971
--------
Repurchase Agreements (17.2%):
31,823 Lehman Brothers, 5.40%, 12/1/98, (Collateralized by
$40,430, Federal National Mortgage Assoc. Notes,
0.00%--6.32%, 9/25/00--5/23/05, market value--$32,462).. 31,823
--------
Total Repurchase Agreements 31,823
--------
Total Investments (Cost $185,794)(a)--100.3% 185,794
--------
Liabilities in excess of other assets (0.3)% (511)
--------
Total Net Assets--100.0% $185,283
========
</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 November 30, 1998.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
46
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper (95.3%):
Alaska (1.3%):
$ 1,500 Valdez Alaska Marine Pipeline Project, 3.30%*, 12/15/33. $ 1,500
--------
Colorado (0.1%):
140 Colorado Health Facilities Authority Revenue, Catholic
Health Initiatives, Series A, 3.75%, 12/1/98........... 140
--------
Florida (0.7%):
760 Gainesville Florida Utilities System, 3.55%, 12/8/98.... 760
--------
Georgia (6.6%):
4,500 Burke County Georgia, 3.65%*, 7/1/24, Development
Authority PCR.......................................... 4,500
2,315 Cobb County School District, 3.70%, 2/1/99.............. 2,320
670 Georgia Municipal Electric Authority, 3.10%*, 1/1/26.... 670
--------
7,490
--------
Illinois (5.2%):
1,000 Chicago Park District Tax Anticipation Warrants, 4.30%,
9/17/99................................................ 1,006
1,900 Illinois Health Facilities Authority Advocate, Health
Care, Series B, 4.05%*, 8/15/22........................ 1,900
2,000 Illinois Health Facilities Authority, Southern Illinois
Healthcare, Series B, 3.15%*, 3/1/21................... 1,999
1,000 Lake County, Illinois Certificates of Participation,
7.00%, 6/1/99.......................................... 1,017
--------
5,922
--------
Indiana (0.6%):
665 Purdue University, Indiana Student Fee, Series K,
3.10%*, 7/1/20......................................... 665
--------
Iowa (0.6%):
730 Polk County, Iowa Hospital Equipment, 3.15%*, 12/1/05... 730
--------
Kentucky (0.6%):
700 Kentucky Economic Development Catholic Health
Initiatives, Series A, 3.75%, 12/1/98.................. 700
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Louisiana (2.9%):
$ 1,300 De Soto Parish, LA PCR, Central Louisiana Electric Co.,
Refunding Bonds, Series A, 3.85%*, 7/1/18**............ $ 1,300
2,000 East Baton Rouge, LA PCR, Exxon Corp., 3.85%, 10/1/27**. 2,000
--------
3,300
--------
Maryland (2.5%):
1,000 Maryland State, GO, 6.80%, 3/1/01, Prerefunded 3/1/99
@100.5................................................. 1,014
1,800 Montgomery County, Maryland Consolidated Public,
Improvement, Series 1992-A, 5.10%, 7/1/99.............. 1,815
--------
2,829
--------
Massachusetts (2.6%):
3,000 Massachusetts State GO, 3.05%*, 9/1/16.................. 3,000
--------
Michigan (14.2%):
1,000 Board of Control, Michigan Technological University,
3.20%*, 10/1/18........................................ 1,000
1,000 Delta County, Economic Development Corp., Environmental
Improvement Revenue Bonds, (Mead Escanaba Paper),
Series E, 4.00%*, 12/1/23.............................. 1,000
1,000 Michigan Municipal Bond Authority Local Government,
Revenue Bond, 6.90%, 5/1/99............................ 1,013
1,500 Michigan Municipal Bond Authority Series D-2, 4.25%,.... 1,507
2,700 Michigan Strategic Fund Limited Obligation Revenue,
Consumers Power Co., Series A, 3.35%*, 6/15/10, Loc:
Canadian Imperial Bank................................. 2,700
500 Monroe Co., Michigan Economic Development Corp. Limited
Obligation, Detroit Edison, Series Cc, 3.35%*, 10/1/24,
LOC: Barclays Bank PLC................................. 500
2,500 Royal Oak, Hospital Financial Authority, William
Beaumont Hospital, Series C, 7.38%, 1/1/20**........... 2,557
500 University of Michigan Hospital, Revenue Bond, Series A,
4.00%*, 12/1/27........................................ 500
3,100 University of Michigan, Hospital Revenue, Series A,
3.90%*, 12/1/27........................................ 3,101
2,400 Wayne Charter County, Airport Revenue, AMT, 3.85%*,
12/1/16**.............................................. 2,400
--------
16,278
--------
</TABLE>
Continued
47
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Minnesota (4.3%):
$ 1,900 Becker, Northern States Power, Series 1992-A, 3.25%,.... $ 1,900
1,000 Minneapolis, Minnesota Government Obligation, Series
1997-B, Vrn, 10/1/07................................... 1,000
2,000 Minnesota School Districts Tax & Aid Anticipation,
Certificates, Series B, 3.63%, 8/27/99................. 2,000
--------
4,900
--------
Mississippi (0.9%):
1,000 Jackson County, Mississippi PCR, Chevron U.S.A., Inc.
Project, 3.25%*, 12/1/16............................... 1,000
--------
Missouri (1.3%):
1,500 Missouri State Health & Educational Facilities
Authority, Washington Univ., 3.25%*, 9/1/30............ 1,500
--------
New York (0.9%):
1,000 Long Island Power Authority, 3.20%, 1/11/99, LOC:
Westdeutch 50%, Bayerische 50%......................... 1,000
--------
North Carolina (2.2%):
2,500 North Carolina Chapel Hill University Revenue, 3.20%*,
7/1/12, LOC: Nations Bank.............................. 2,500
--------
Ohio (8.1%):
1,000 Cuyahoga County, Cleveland Clinic, 3.15%*, 1/1/26....... 1,000
500 Cuyahoga County, Cleveland Clinic, 3.30%*, 1/1/26....... 500
1,700 Highland Heights, Ohio, 3.95%, 8/19/99.................. 1,703
1,955 Ohio Air Quality Development Authority, Duquesne, Light,
3.20%, 1/29/99, LOC: First Chicago..................... 1,955
2,500 Ohio State University Capital Receipts Revenue, 3.10%*,
12/1/06................................................ 2,500
1,500 Student Loan Funding Corp., 3.25%*, 12/29/98............ 1,500
--------
9,158
--------
Oklahoma (2.0%):
1,200 Muskogee, PCR, Oklahoma Gas & Electric Co., Series A,
4.00%*, 1/1/25......................................... 1,200
1,000 Tulsa Oklahoma, 6.20%, 6/1/99........................... 1,016
--------
2,216
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Oregon (1.8%):
$ 2,000 State Housing & Community Service, Series C, 3.75%,
5/13/99................................................ $ 2,000
--------
Pennsylvania (3.9%):
1,000 Geisinger Authority, Pennstate Geisinger Health System,
Series 1998-B, 3.25%*, 8/15/28......................... 1,000
2,100 N.E. Penn Hospital Authority, 3.40%, 12/16/98........... 2,100
1,300 Washington County Higher Education, Pooled Equipment
Lease Revenue, 3.85%*, 11/1/05......................... 1,300
--------
4,400
--------
South Carolina (4.9%):
1,500 South Carolina Public Service, 3.15%, 1/29/99........... 1,500
3,000 South Carolina Public Service Notice, 3.25%, 1/8/99..... 3,000
1,000 South Carolina State, 5.50%, 4/1/99..................... 1,009
--------
5,509
--------
Tennessee (3.1%):
3,500 Tennessee State School Bond Authority, 3.45%, 3/10/99... 3,500
--------
Texas (4.4%):
2,000 Houston Texas, 3.35%, 12/17/98.......................... 2,000
3,000 San Antonio, Texas Electric & Gas, 3.55%, 2/10/99....... 3,000
--------
5,000
--------
Utah (3.5%):
1,500 Intermountain Power Agency, 3.25%, 1/7/99............... 1,500
1,500 Salt Lake County, PCR, Service Station Holding Project,
Series B, 3.80%*, 8/1/07............................... 1,500
1,000 Utah County, Utah PCR, USX Corp., 3.60%, 11/1/17, LOC:
Wachovia............................................... 1,000
--------
4,000
--------
Virginia (1.8%):
1,000 Chesapeake, Water & Sewer System Revenue Bond, 6.50%,
12/1/20, Prerefunded 12/1/98 @102...................... 1,000
1,000 Virginia State, Refunding Bonds, 5.50%, 12/1/98......... 1,000
--------
2,000
--------
</TABLE>
Continued
48
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Tax-Free Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Washington (9.7%):
$ 3,000 King County Washington Sewer System, 3.40%, 12/10/98.... $ 3,000
2,000 King County Washington Sewer System, 3.40%, 12/11/98.... 2,000
3,000 Washington Health Care Facilities Authority, Revenue,
Series A, 3.30%*, 1/1/18, Fred Hutchinson Cancer, LOC:
Morgan Guaranty Trust.................................. 3,000
3,000 Washington State, GO, Vrn, 6/1/20....................... 3,000
--------
11,000
--------
Wisconsin (2.6%):
1,250 Milwaukee, WI Metropolitan Sewer District, 7.00%,
9/1/99................................................. 1,280
1,640 Wisconsin State Clean Water Revenue Bond, Series 1,
4.50%, 6/1/99.......................................... 1,648
--------
2,928
--------
Wyoming (2.0%):
2,300 Lincoln County, PCR, Exxon Project-A, 4.05%* 11/1/14.... 2,300
--------
Total Municipal Bonds, Notes, & Commercial Paper 108,225
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
----------- ------------------------------------------------------- ---------
<C> <S> <C>
Investment Companies (1.0%):
1,111,377 Municipal Cash Mutual Fund............................. $ 1,111
--------
Total Investment Companies 1,111
--------
Cash Equivalents (3.1%):
$ 3,567 Goldman Sachs Financial Square
Tax Exempt............................................ 3,567
--------
Total Cash Equivalents 3,567
--------
Total Investments (Cost $112,903)(a)--99.4% 112,903
--------
Other assets in excess of liabilities 0.6% 667
--------
Total Net Assets--100.0% $113,570
========
</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
November 30, 1998.
** Put and demand features exists allowing the Fund to require the repurchase
of the investment within variable time periods of less than one year.
(a) Cost and value 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.
49
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Treasury Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
U.S. Treasury Notes (22.1%):
$ 5,000 5.75%, 12/31/98......................................... $ 5,001
10,000 6.38%, 1/15/99.......................................... 10,010
5,000 5.88%, 3/31/99.......................................... 5,006
17,500 6.25%, 3/31/99.......................................... 17,555
27,500 6.38%, 4/30/99.......................................... 27,672
--------
Total U.S. Treasury Notes 65,244
--------
Repurchase Agreements (78.1%):
73,640 Bank of America Securities, 5.32%, 12/1/98,
(Collateralized by $68,930, U.S. Treasury Notes, 6.63%-
6.88%, 6/30/01-5/15/06, market value--$74,819)......... 73,640
14,500 Dresdner Securities, 5.20%, 12/1/98, (Collateralized by
$12,132 U.S. Treasury Bonds, 6.63%, 2/15/27, market
value--$14,728)........................................ 14,500
73,930 Greenwich Capital, 5.30%, 12/1/98, (Collateralized by
$146,170, U.S. Treasury Note Strips, 0.00%, 5/15/10-
5/15/12, market value--$75,410)........................ 73,930
14,500 J.P. Morgan, 5.15%, 12/1/98, (Collateralized by $12,224,
U.S. Treasury Bonds, 6.75%, 8/15/26, market value--
$15,033)............................................... 14,500
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Repurchase Agreements, continued:
$ 14,790 Lehman Brothers, 5.40%, 12/1/98, (Collateralized by
$9,690, U.S.Treasury Bond, 12.00%, 8/15/13, market
value--$15,082)....................................... $ 14,790
14,500 Merrill Lynch, 5.27%, 12/1/98, (Collateralized by
$14,650, U.S. Government Agency Securities, 3.38%,
1/15/07, market value--$14,793)....................... 14,500
10,518 Prudential Securities, 5.10%, 12/1/98, (Collateralized
by $7,855, U.S. Treasury Bonds, 8.13%, 8/15/19, market
value--$10,649)....................................... 10,518
14,500 Warburg Dillon Reed, 5.20%, 12/1/98, (Collateralized by
$$12,655, U.S. Treasury Bonds, 6.50%, 11/15/26, market
value--$14,791)....................................... 14,500
--------
Total Repurchase Agreements 230,878
--------
Total Investments (Cost $296,122)(a)--100.2% 296,122
--------
Liabilities in excess of other assets (0.2)% (460)
--------
Total Net Assets--100.0% $295,662
========
</TABLE>
- -------
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
50
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Small Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (87.1%):
Advertising (1.6%):
239,225 HA-LO Industries, Inc.(b)(c).............................. $ 7,640
--------
Business Services (13.5%):
216,525 Concord EFS, Inc.(b)(c)................................... 6,888
217,700 FYI, Inc.................................................. 6,858
197,500 Hagler Bailly, Inc.(b)(c)................................. 3,580
149,850 International Telecommunications Data Systems, Inc.(b).... 3,690
269,869 Iron Mountain, Inc.(b).................................... 7,894
59,600 Lason, Inc.(b)(c)......................................... 3,658
174,600 Metzler Group, Inc.(b)(c)................................. 7,246
285,000 NCO Group, Inc.(b)........................................ 10,509
197,000 NOVA Corp (Georgia)(b)(c)................................. 6,267
181,700 QRS Corp.(b).............................................. 7,654
--------
64,244
--------
Computer Hardware (1.5%):
172,000 Insight Enterprises(b).................................... 7,246
--------
Computer Services (0.8%):
182,000 Pegasus Systems, Inc.(b).................................. 4,050
--------
Computer Software & Peripherals (14.0%):
179,750 Apex PC Solutions, Inc.(b)................................ 4,651
227,800 Ardent Software, Inc...................................... 4,043
242,300 Aspen Technologies, Inc.(b)(c)............................ 3,407
264,000 Axnet Technologies, Inc.(b)............................... 6,882
239,100 Datastream Systems, Inc.(b)............................... 2,421
322,750 Deltek Systems, Inc.(b)................................... 5,688
114,300 Engineering Animation, Inc.(b)(c)......................... 4,472
68,000 HNC Software(b)........................................... 2,244
43,000 Infinium Software, Inc.(b)................................ 271
162,300 Macrovision Corp.(b)...................................... 5,904
156,100 New Dimension Software(c)................................. 5,190
352,000 Software AG Systems, Inc.(b)(c)........................... 6,776
119,100 Symix Systems(b).......................................... 2,382
168,100 Unigraphics Solutions, Inc.(b)............................ 2,500
279,350 Visio Corp.(b)............................................ 9,883
--------
66,714
--------
Correctional Facilities (2.0%):
356,000 Wackenhut Corrections Corp.(b)(c)......................... 9,612
--------
Environmental Services (1.2%):
186,800 Casella Waste Systems, Inc., Series A(b).................. 5,838
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued
Financial Services (4.4%):
220,000 Amresco, Inc.(b).......................................... $ 1,609
157,700 DVI, Inc.(b).............................................. 2,789
519,600 Franchise Mortgage Acceptance Co.(b)...................... 5,001
111,300 Healthcare Financial Partners, Inc.(b)(c)................. 3,659
233,250 Inspire Insurance Solutions(b)............................ 7,814
--------
20,872
--------
Food Products & Services (0.5%):
380,000 NBTY, Inc.(b)............................................. 2,328
--------
Funeral Services (1.7%):
323,300 Equity Corp. International(b)............................. 8,365
--------
Health Care - Services (14.3%):
287,100 ABR Information Services, Inc.(b)(c)...................... 4,881
445,000 American Oncology Resources, Inc.(b)...................... 4,978
188,900 Boron, Lepore & Assoc., Inc.(b)(c)........................ 5,809
263,300 Carematrix Corp.(b)(c).................................... 7,372
278,000 Medquist, Inc.(b)......................................... 8,444
243,143 NCS HealthCare, Inc., Class A(b)(c)....................... 4,924
319,600 Orthodontic Centers of America, Inc.(b)(c)................ 6,112
203,200 Parexel International Corp.(b)............................ 5,296
21,700 Priority Healthcare Corp. Class B(b)...................... 795
240,600 Quadramed Corp.(b)(c)..................................... 5,774
430,200 Serologicals Corp.(b)..................................... 12,637
26,600 Sunrise Assisted Living, Inc.(b)(c)....................... 1,147
--------
68,169
--------
Insurance (3.0%):
462,900 Annuity and Life Re(b).................................... 11,746
218,000 Scottish Annuity & Life Holdings(b)....................... 2,752
--------
14,498
--------
Machinery & Equipment (0.3%):
44,400 MotivePower Industries, Inc............................... 1,351
--------
Manufactured Housing (0.7%):
177,550 Modtech, Inc.(b).......................................... 3,373
--------
Medical Equipment & Supplies (3.1%):
84,500 Biomatrix, Inc.(b)(c)..................................... 4,104
115,500 Gliatech,Inc.(b).......................................... 2,815
191,800 Molecular Devices Corp.(b)................................ 3,428
127,000 Sabratek Corp.(b)(c)...................................... 2,143
330,000 Scios, Inc.(b)............................................ 2,496
--------
14,986
--------
</TABLE>
Continued
51
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Small Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oilfield Services & Equipment (1.0%):
274,300 Key Energy Group, Inc.(b)................................. $ 1,714
320,400 Omni Energy Services(b)................................... 3,184
--------
4,898
--------
Pharmaceuticals (2.6%):
210,000 Jones Pharma Incorporation(c)............................. 7,560
326,000 King Pharmaceuticals, Inc.(b)............................. 4,890
--------
12,450
--------
Printing & Publishing (3.4%):
591,400 American Bank Note Holographics........................... 7,984
142,500 Consolidated Graphics, Inc.(b)............................ 8,203
--------
16,187
--------
Radio (1.0%):
209,200 Citadel Communications(b)................................. 5,021
--------
Rental Equipment Furniture (2.0%):
238,000 Rental Service Corp.(b)................................... 5,043
187,000 Renter's Choice, Inc.(b).................................. 4,511
--------
9,554
--------
Resorts & Entertainment (1.1%):
385,800 Vistana, Inc.(b).......................................... 5,449
--------
Retail Stores (1.6%):
234,600 Fred's, Inc............................................... 3,299
176,000 The Men's Wearhouse, Inc.(b).............................. 4,455
--------
7,754
--------
Semiconductors (0.6%):
81,100 ATMI, Inc.(b)............................................. 1,551
72,200 Photronics, Inc.(b)(c).................................... 1,444
--------
2,995
--------
Technology (4.2%):
130,000 Aeroflex, Inc.(b)......................................... 1,779
121,625 Maxwell Technologies, Inc................................. 3,238
237,000 Mercury Computer Systems, Inc.(b)......................... 5,273
131,900 Sanmina Corp.(b)(c)....................................... 6,571
156,500 SDL, Inc.(b).............................................. 3,492
--------
20,353
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Telecommunication - Services & Equipment (5.2%):
176,200 Dycom(b)................................................. $ 6,927
154,926 Genesys Telecomm Labs, Inc.(b)(c)........................ 4,444
252,350 Pacific Gateway Exchange, Inc.(b)(c)..................... 11,293
102,600 World Access, Inc.(b)(c)................................. 2,084
--------
24,748
--------
Wholesale Distribution (1.8%):
589,324 Brightpoint, Inc. (b)(c)................................. 8,840
--------
Total Common Stocks 417,535
--------
Foreign Common Stocks (0.0%):
Israel (0.0%):
Computer Software (0.0%):
10,700 MEMCO Software, Inc.(b)(c)............................... 142
--------
Total Foreign Common Stocks 142
--------
Government Obligations (8.6%):
Federal Home Loan Mortgage Corp. (8.6%):
41,000 4.72%, 12/2/98........................................... 40,989
--------
Total Government Obligations 40,989
--------
Cash Equivalents (3.7%):
17,566,047 Goldman Sachs Financial
Square Premium.......................................... 17,566
--------
Total Cash Equivalents 17,566
--------
Short Term Securities held as Collateral (22.4%):
Certificate of Deposit (3.1%):
15,000 Bank Brussels Lambert FYCD,
5.24%, 2/16/99.......................................... 15,003
--------
Commercial Paper (4.2%):
20,000 Kaiser Foundation Hospital, 5.65%, 12/1/98............... 19,997
--------
Floating Rate Note (12.5%):
25,000 Bankers Trust Corp., 4.99%, 8/6/99....................... 24,997
10,000 Merrill Lynch, 5.01%, 9/29/99............................ 10,000
10,000 Merrill Lynch, 5.02%, 10/4/99............................ 10,000
15,000 Sigma Finance Inc., 4.91%, 9/15/99....................... 15,000
--------
59,997
--------
</TABLE>
Continued
52
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Small Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ---------
<C> <S> <C>
Short Term Securities held as Collateral, continued:
Repurchase Agreements (2.6%):
$12,300 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98,
(See Significant Accounting Policies, Lending
Portfolio Securities in the Notes to Financial
Statements for collateral description)............... $ 12,300
---------
Total Short Term Securities Held As Collateral 107,297
---------
Total Investments (Cost $526,244)(a)--121.8% 583,529
Liabilities in excess of other assets (21.8)% (104,350)
---------
Total Net Assets--100.0% $ 479,179
=========
</TABLE>
- -------
<TABLE>
<CAPTION>
Open Futures Contracts
----------------------------------
Number of Contracts Contract Value Expiration Date Unrealized Gain/Loss
------------------- -------------- --------------- --------------------
<S> <C> <C> <C> <C>
Russell 2000 Stock Index
Futures 188 $33,029 12/18/98 $4,291
</TABLE>
The aggregate market value of cash pledged to cover margin requirements for
open futures positions at November 30, 1998 was $1,692.
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 90,798
Unrealized depreciation..................................... (33,513)
--------
Net unrealized appreciation................................. $ 57,285
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of the security has been loaned at November 30, 1998.
See notes to financial statements.
53
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Mid Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks (92.1%):
Air Transportation (0.8%):
126,200 Comair Holdings, Inc. ................................... $ 3,865
---------
Automotive (0.3%):
33,200 Harley-Davidson, Inc. ................................... 1,388
---------
Banking (6.6%):
92,300 AmSouth Bancorporation................................... 3,900
237,600 First Tennessee National Corp.(c)........................ 7,960
67,800 Marshall & Ilsley Corp. ................................. 3,454
184,200 Old Kent Financial Corp. ................................ 7,921
137,700 SouthTrust Corp. ........................................ 5,060
101,900 Zions Bancorporation..................................... 5,146
---------
33,441
---------
Broadcasting & Publishing (3.7%):
119,900 Cablevision Systems(b)(c)................................ 4,961
300,800 CanWest Global Communications Corp. ..................... 3,722
210,600 Clear Channel Communications, Inc ....................... 9,846
---------
18,529
---------
Business Services (8.3%):
215,000 Cintas Corp.(c).......................................... 11,826
86,000 Metzler Group, Inc.(b)................................... 3,569
212,512 Paychex, Inc. ........................................... 10,572
112,700 Robert Half International, Inc. ......................... 5,297
334,400 SunGard Data Systems, Inc.(b)(c)......................... 10,701
---------
41,965
---------
Commercial Services (0.7%):
120,000 Central Parking Corp.(c)................................. 3,525
---------
Computer Hardware (2.2%):
130,100 Apple Computer(b)(c)..................................... 4,155
88,800 Lexmark International Group(b)........................... 6,782
---------
10,937
---------
Computer Software & Peripherals (5.3%):
55,000 BMC Software, Inc.(b)(c)................................. 2,808
75,000 Citrix Systems, Inc.(b)(c)............................... 6,225
69,900 Network Appliance, Inc.(b)............................... 5,251
163,350 VERITAS Software Corp.(b)(c)............................. 9,760
58,500 Wind River System, Inc.(b)(c)............................ 2,728
---------
26,772
---------
Data Processing & Reproduction (3.5%):
206,475 Fiserv, Inc.(b).......................................... 9,123
240,600 Sterling Commerce, Inc.(b)(c)............................ 8,722
---------
17,845
---------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Diversified Operations (0.0%):
41 Tyco International Ltd. ................................. $ 3
---------
Educational Services (3.2%):
201,350 Apollo Group, Inc.(b)(c)................................. 6,494
332,475 Sylvan Learning Systems, Inc.(b)(c)...................... 9,662
---------
16,156
---------
Electrical & Electronic (4.6%):
108,800 Jabil Circuit, Inc.(b)................................... 6,310
226,200 Sanmina Corp.(b)(c)...................................... 11,268
90,200 Solectron Corp.(b)(c).................................... 5,970
---------
23,548
---------
Environmental Services (1.2%):
289,100 Allied Waste Industries.................................. 5,890
---------
Financial Services (4.6%):
382,725 Concord EFS, Inc.(b)(c).................................. 12,176
213,800 Finova Group, Inc. ...................................... 11,291
---------
23,467
---------
Funeral Services (2.7%):
137,800 Service Corp. International(c)........................... 5,150
375,100 Stewart Enterprises(c)................................... 8,370
---------
13,520
---------
Health Care - Services (5.4%):
164,300 HCR Manor Care, Inc.(b).................................. 5,217
412,030 Health Management Associates, Inc.(b).................... 8,935
87,900 Medquist, Inc.(b)........................................ 2,670
166,000 Omnicare, Inc.(c)........................................ 4,752
112,100 Quintiles Transnational Corp.(b)(c)...................... 5,591
---------
27,165
---------
Industrial Goods & Services (0.9%):
154,800 Ecolab, Inc. ............................................ 4,789
---------
Industrial Supplies (1.2%):
247,200 MSC Industrial Direct Co., Inc. ......................... 5,886
---------
Insurance (2.4%):
130,000 Nationwide Financial Services, Inc. ..................... 6,256
74,800 SunAmerica, Inc.......................................... 5,928
---------
12,184
---------
Manufacturing - Consumer Goods (0.7%):
77,150 Newell Co.(c)............................................ 3,414
---------
Medical Equipment & Supplies (0.9%):
131,600 Henry Schein, Inc.(b)(c)................................. 4,672
---------
</TABLE>
Continued
54
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Mid Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Medical - Hospital Services (1.1%):
214,000 Total Renal Care Holdings, Inc.(b)(c).................... $ 5,684
---------
Pharmaceuticals (6.1%):
53,500 Biogen................................................... 4,059
231,100 Forest Laboratories(b)................................... 10,776
179,800 Mylan Laboratories(c).................................... 5,967
189,700 Watson Pharmaceutical, Inc.(b)........................... 10,220
---------
31,022
---------
Retail Stores (8.9%):
140,500 Best Buy Company, Inc.(c)................................ 8,096
547,400 Family Dollar Stores..................................... 10,982
285,900 Linens 'N Things, Inc.(b)................................ 8,756
382,300 Office Depot, Inc.(b)(c)................................. 12,426
150,300 Ross Stores, Inc.(c)..................................... 5,467
---------
45,727
---------
Semiconductors (2.7%):
50,000 Altera Corp.............................................. 2,453
221,600 Vitesse Semiconductor Corp.(b)(c)........................ 7,894
65,000 Xilinx, Inc.(b).......................................... 3,299
---------
13,646
---------
Technology (4.9%):
91,500 American Power Conversion................................ 3,786
135,200 Gemstar International Group Ltd.(b)(c)................... 8,213
110,600 Symbol Technologies, Inc. ............................... 5,392
138,600 Uniphase Corp.(b)(c)..................................... 7,510
---------
24,901
---------
Telecommunications - Services & Equipment (6.2%):
195,000 Century Telephone Enterprises, Inc. ..................... 11,115
125,200 Comverse Technology, Inc.(b)(c).......................... 7,199
156,100 McLeod USA, Inc.(b)(c)................................... 4,829
205,800 Qwest Communications International, Inc.(b).............. 8,232
---------
31,375
---------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks continued:
Wholesale Distribution (1.0%):
335,200 Brightpoint, Inc.(b)..................................... $ 5,028
---------
Wholesale Distribution - Pharmaceuticals (2.0%):
78,200 Allegiance Corp. ........................................ 3,152
102,937 Cardinal Health, Inc.(c)................................. 7,064
---------
10,216
---------
Total Common Stocks 466,560
---------
Government Agencies (4.3%):
Federal Home Loan Mortgage Corp. (4.3%):
$ 22,000 4.72%, 12/2/98........................................... 21,994
---------
Total Government Agencies 21,994
---------
Cash Equivalents (4.6%):
23,364 Goldman Sachs Financial
Square Premium.......................................... 23,364
---------
Total Cash Equivalents 23,364
---------
Short Term Securities Held as Collateral (26.9%):
Certificate of Deposit (2.0%):
$ 10,000 Bank Brussels Lambert FYCD, 5.24%, 2/16/99............... 10,002
---------
Commercial Paper (2.9%):
15,000 Sheffield Receivables Corp., 5.29%, 12/7/98.............. 14,897
---------
Floating Rate Note (15.8%):
20,000 Chrysler Financial Corp., 5.21%, 2/10/99................. 20,003
15,000 Household CCMT ABT 96 Series A4, 5.28%, 1/15/99.......... 15,000
10,000 Merrill Lynch, 5.01%, 9/29/99............................ 10,000
10,000 Merrill Lynch, 5.02%, 10/4/99............................ 10,000
15,000 Sigma Finance Inc., 4.91%, 9/15/99....................... 15,000
10,000 Strategic Money Market Trust Notes, 5.28%, 3/5/99........ 10,000
---------
80,003
---------
</TABLE>
Continued
55
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Mid Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ---------
<C> <S> <C>
Short Term Securities Held as Collateral, continued:
Repurchase Agreements (6.2%):
$ 31,312 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98,
(See Significant Accounting Policies, Lending
Portfolio Securities in the Notes to Financial
Statements for collateral description)............... $ 31,312
---------
Total Short Term Securities Held As Collateral 136,214
---------
Total Investments (Cost $541,779)(a)--127.9% 648,132
Liabilities in excess of other assets (27.9)% (141,220)
---------
Total Assets--100.0% $ 506,912
=========
</TABLE>
- -------
<TABLE>
<CAPTION>
Open Futures Contracts
----------------------------------
Number of Contracts Contract Value Expiration Date Unrealized Gain/Loss
------------------- -------------- --------------- --------------------
<S> <C> <C> <C> <C>
Standard & Poor Mid 400
Stock Index Futures 196 $29,269 12/18/98 $5,006
</TABLE>
The aggregate market value of cash pledged to cover margin requirements for
open futures positions at November 30, 1998 was $1,568.
- -------
* 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
November 30, 1998.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $121,729
Unrealized depreciation..................................... (15,379)
--------
Net unrealized appreciation................................. $106,350
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at November 30, 1998.
See notes to financial statements.
56
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Large Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks (97.7%):
Banking (1.3%):
78,100 State Street Corp.(c).................................... $ 5,360
---------
Broadcasting/Cable (0.4%):
19,000 Clear Channel Communications, Inc. ...................... 888
20,000 Comcast Corporation--Class A............................. 973
---------
1,861
---------
Business Services (1.7%):
67,100 Automatic Data Processing, Inc. ......................... 5,167
30,000 Ceridian Corp.(c)........................................ 1,952
---------
7,119
---------
Chemicals (1.1%):
102,300 Monsanto Co. ............................................ 4,635
---------
Computer Hardware (3.9%):
65,800 Dell Computer Corp.(b)................................... 4,001
87,800 EMC Corp.(c)............................................. 6,365
13,900 IBM...................................................... 2,294
55,600 Sun Microsystems, Inc.(b)(c)............................. 4,118
---------
16,778
---------
Computer Software & Peripherals (7.4%):
36,800 America Online, Inc.(b)(c)............................... 3,222
95,400 BMC Software, Inc.(b)(c)................................. 4,871
102,600 Cadence Design Systems, Inc.(b)(c)....................... 2,886
164,200 HBO & Company............................................ 4,095
119,600 Microsoft, Inc.(b)....................................... 14,592
89,600 PeopleSoft, Inc.(b)...................................... 1,842
---------
31,508
---------
Consumer Goods & Services (5.6%):
71,800 Clorox Co.(c)............................................ 7,974
65,200 Gillette Co. ............................................ 2,995
60,500 Phillip Morris Companies, Inc. .......................... 3,384
108,200 Procter & Gamble Co. .................................... 9,482
---------
23,835
---------
Diversified Operations (1.7%):
107,800 Tyco International Ltd. ................................. 7,095
---------
Electrical & Electronic (3.5%):
84,500 Emerson Electric Co. .................................... 5,493
103,900 General Electric Co. .................................... 9,402
---------
14,895
---------
Environmental Services (1.2%):
120,000 Waste Management, Inc. .................................. 5,145
---------
Financial Services (8.8%):
78,200 American Express Co.(c).................................. 7,825
99,700 Associates First Capital Corp. .......................... 7,764
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Financial Services, continued:
123,200 Freddie Mac.............................................. $ 7,454
139,500 Household International, Inc. ........................... 5,458
361,912 MBNA Corp. .............................................. 8,210
26,800 Newcourt Credit Group, Inc. ............................. 948
---------
37,659
---------
Food & Beverage (1.2%):
71,300 The Coca-Cola Co. ....................................... 4,995
---------
Food Products & Services (3.7%):
105,400 Bestfoods................................................ 6,126
186,600 Safeway, Inc.(b)(c)...................................... 9,855
---------
15,981
---------
Funeral Services (0.6%):
71,500 Service Corp. International(c)........................... 2,672
---------
Health Care - Services (0.4%):
118,900 HEALTHSOUTH Corp.(b)..................................... 1,598
---------
Hotels & Lodging (1.0%):
142,600 Marriott International, Inc. Class A..................... 4,189
---------
Industrial Goods & Services (1.2%):
46,800 United Technologies Corp. ............................... 5,016
---------
Insurance (4.4%):
104,000 American International Group, Inc.(c).................... 9,776
57,100 Conseco, Inc. ........................................... 1,891
112,150 Marsh & McLennan Cos., Inc. ............................. 6,526
10,250 SunAmerica, Inc. ........................................ 812
---------
19,005
---------
Medical Equipment & Supplies (2.0%):
41,000 Guidant Corp. ........................................... 3,518
73,800 Medtronic, Inc. ......................................... 4,996
---------
8,514
---------
Office Equipment & Services (2.5%):
49,300 Hewlett-Packard Co. ..................................... 3,094
39,100 Pitney Bowes, Inc. ...................................... 2,190
48,400 Xerox Corp.(c)........................................... 5,202
---------
10,486
---------
Oil & Gas (0.4%):
41,200 Schlumberger Ltd. ....................................... 1,841
---------
Pharmaceuticals (11.3%):
20,000 Bristol Myers Squibb Co. ................................ 2,451
128,800 Eli Lilly & Co. ......................................... 11,552
50,200 Johnson & Johnson........................................ 4,079
10,000 Merck & Co., Inc. ....................................... 1,549
126,200 Pfizer, Inc. ............................................ 14,086
</TABLE>
Continued
57
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Large Capitalization Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Pharmaceuticals, continued
20,000 Schering Plough Corp. ................................... $ 2,128
171,000 Warner-Lambert Co.(c).................................... 12,911
---------
48,756
---------
Resorts & Entertainment (3.6%):
202,200 Carnival Cruise Lines.................................... 6,976
81,000 Time Warner Inc. ........................................ 8,566
---------
15,542
---------
Retail Stores (10.4%):
128,000 CVS Corp. ............................................... 6,320
249,300 Home Depot, Inc. ........................................ 12,403
225,000 Lowe's Cos.(c)........................................... 9,506
91,300 Wal-Mart................................................. 6,876
184,900 Walgreen Co.(c).......................................... 9,927
---------
45,032
---------
Semiconductors (2.6%):
76,900 Intel Corp. ............................................. 8,277
39,600 Texas Instruments(c)..................................... 3,024
---------
11,301
---------
Telecommunications - Services & Equipment (13.9%):
122,800 AirTouch Communications, Inc.(b)(c)...................... 7,023
44,978 AT&T Corp. .............................................. 2,803
50,000 Bell South............................................... 4,363
220,475 Cisco Systems, Inc.(b)................................... 16,617
150,400 Lucent Technologies, Inc. ............................... 12,943
122,100 MCI WorldCom, Inc. ...................................... 7,204
97,100 Nextel Communications, Inc., Series A(b)(c).............. 2,088
90,000 SBC Communications, Inc. ................................ 4,314
45,900 Tellabs, Inc.(b)......................................... 2,481
---------
59,836
---------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Wholesale Distribution - Pharmaceuticals (1.9%):
116,025 Cardinal Health, Inc.(c)............................... $ 7,962
---------
Total Common Stocks 418,616
---------
Cash Equivalents (2.2%):
$ 9,282 Goldman Sachs Financial
Square Premium........................................ 9,282
---------
Total Cash Equivalents 9,282
---------
Short Term Securities as Collateral (16.8%):
Commercial Paper (3.7%):
16,000 Kaiser Foundation Hospital,
5.65%, 12/1/98........................................ 15,998
---------
Floating Rate Note (8.8%):
5,000 Household CCMT ABT 96 Series A4, 5.28%, 1/15/99........ 5,000
15,000 Merrill Lynch, 5.01%, 9/29/99.......................... 15,001
10,000 Sigma Finance Inc., 4.91%, 9/15/99..................... 10,000
7,500 Strategic Money Market Trust Notes, 5.28%, 3/5/99...... 7,499
---------
37,500
---------
Repurchase Agreements (4.3%):
18,220 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98,
(See Significant Accounting Policies, Lending
Portfolio Securities in the Notes to Financial
Statements for collateral description)................ 18,220
---------
Total Short Term Securities Held as Collateral 71,718
---------
Total Investments (Cost $317,271)(a)--116.7% 499,616
Liabilities in excess of other assets (16.7)% (71,645)
---------
Total Net Assets--100.0% $ 427,971
=========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $187,554
Unrealized depreciation..................................... (5,209)
--------
Net unrealized appreciation................................. $182,345
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at November 30, 1998.
See notes to financial statements.
58
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
International Discovery Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (93.7%):
Australia (2.2%):
Banking (1.1%):
300,000 National Australia Bank Ltd.............................. $ 4,493
--------
Real Estate (1.1%):
185,000 Lend Lease Corp. Ltd..................................... 4,520
--------
9,013
--------
Belgium (3.0%):
Electronic Components/Instruments (0.9%):
13,000 Barco NV................................................. 3,491
--------
Retail Stores/Catalog (2.1%):
11,000 Colruyt NV............................................... 8,584
--------
12,075
--------
Canada (0.8%):
Aerospace/Defense (0.8%):
240,000 Bombardier, Inc., Class B................................ 3,130
--------
Chile (0.0%):
Telecommunications (0.0%):
25 Cia de Telecomunicaciones de Chile SA, ADR............... 1
--------
Denmark (0.8%):
Telecommunications - Services & Equipment (0.8%):
28,000 Tele Danmark A/S, Class B................................ 3,136
--------
Finland (4.2%):
Commercial Services (1.4%):
150,000 TT Tieto Oy-B Shares..................................... 5,455
--------
Telecommunications - Services & Equipment (2.8%):
116,400 Nokia AB, Class A, ADR................................... 11,408
--------
16,863
--------
France (12.8%):
Broadcasting & Publishing (1.4%):
32,000 Television Francaise..................................... 5,614
--------
Commercial Services (3.0%):
53,400 Altran Technologies...................................... 12,439
--------
Energy (0.9%):
28,000 Total SA, Class B........................................ 3,481
--------
Industrial Goods & Services (0.5%):
11,800 L'Air Liquide............................................ 2,012
--------
Insurance (1.7%):
54,000 AXA...................................................... 6,999
--------
Machinery & Equipment (1.9%):
100,000 Sidel SA................................................. 7,600
--------
Medical Equipment & Supplies (1.3%):
13,000 Essilor International.................................... 5,077
--------
Retail Stores/Catalog (2.1%):
48,500 Pinault-Printemps-Redoute SA............................. 8,295
--------
51,517
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Germany (8.7%):
Banking (2.8%):
90,000 BHF Bank AG.............................................. $ 3,566
92,000 Deutsche Pfandbrief-Und Hypothekenbank AG................ 7,619
--------
11,185
--------
Diversified Operations (2.0%):
113,000 Siemens AG............................................... 7,886
--------
Insurance (1.4%):
16,000 Allianz AG............................................... 5,777
--------
Telecommunications (2.5%):
91,900 Mannesmann AG............................................ 9,974
--------
34,822
--------
Hong Kong (1.2%):
Electrical & Electronic (0.7%):
1,286,000 Johnson Electric Holdings Ltd............................ 2,873
--------
Utilities - Eletrical & Gas (0.5%):
1,560,724 Hong Kong & China Gas Co. Ltd............................ 2,076
--------
4,949
--------
Ireland (0.9%):
Banking (0.9%):
165,000 Bank of Ireland.......................................... 3,427
--------
Italy (2.4%):
Jewelry (1.2%):
887,200 Bulgari SpA.............................................. 4,875
--------
Telecommunications - Services & Equipment (1.2%):
750,000 Telecom Italia Mobile SpA................................ 4,928
--------
9,803
--------
Japan (13.6%):
Computer Hardware (1.3%):
62,000 TDK Corp................................................. 5,150
--------
Consumer Electronics (0.7%):
36,000 Sony Corp................................................ 2,639
--------
Electronic Components/Instruments (1.1%):
135,000 Fanuc Co. Ltd............................................ 4,283
--------
Industrial Goods & Services (1.0%):
175,000 Bridgestone Corporation.................................. 4,100
--------
Insurance (0.7%):
257,000 Tokio Marine & Fire Insurance Co. Ltd.................... 2,906
--------
Manufacturing--Consumer Goods (3.0%):
318,000 Canon, Inc............................................... 7,037
130,000 Fuji Photo Film Ltd...................................... 4,865
--------
11,902
--------
Pharmaceuticals (4.4%):
233,000 Sankyo Co. Ltd........................................... 5,308
376,000 Takeda Chemical Industries............................... 12,694
--------
18,002
--------
</TABLE>
Continued
59
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
International Discovery Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Japan, continued:
Retail Food & Drug (1.4%):
143,000 Matsumotokiyoshi......................................... $ 5,514
--------
54,496
--------
Netherlands (7.8%):
Broadcasting & Publishing (2.4%):
51,243 Wolters Kluwer NV........................................ 9,798
--------
Commercial Services (1.4%):
125,364 Getronics NV............................................. 5,497
--------
Consumer Goods & Services (1.4%):
75,000 Unilever NV.............................................. 5,798
--------
Insurance (0.6%):
40,000 ING Groep NV............................................. 2,297
--------
Office Equipment & Services (2.0%):
226,135 Oce NV................................................... 7,970
--------
31,360
--------
Portugal (2.0%):
Telecommunications (2.0%):
183,000 Portugal Telecom SA...................................... 8,063
--------
Spain (4.9%):
Apparel/Shoes (1.0%):
150,000 Cortefiel SA............................................. 3,910
--------
Beverages & Tobacco (1.4%):
225,000 Tabacalera SA (b)........................................ 5,582
--------
Gas & Electric Utility (1.3%):
198,000 Endesa SA................................................ 5,181
--------
Telecommunications (1.2%):
104,000 Telefonica SA (b)........................................ 4,901
--------
19,574
--------
Sweden (0.5%):
Metals (0.5%):
55,000 Assa Abloy AB, Class B................................... 2,203
--------
Switzerland (8.6%):
Food Products & Services (2.8%):
5,430 Nestle SA................................................ 11,317
--------
Insurance (1.9%):
3,000 Swiss Reinsurance Co..................................... 7,606
--------
Pharmaceuticals (3.9%):
3,350 Novartis AG.............................................. 6,308
779 Roche Holdings AG........................................ 9,181
--------
15,489
--------
34,412
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
United Kingdom (15.4%):
Aerospace/Defense (3.1%):
886,392 British Aerospace PLC.................................... $ 7,680
324,500 Cobham PLC............................................... 4,553
--------
12,233
--------
Banking (1.4%):
280,000 Abbey National PLC....................................... 5,662
--------
Commercial Services (2.3%):
1,214,285 Logica PLC (b)........................................... 8,819
--------
Diversified Operations (1.2%):
321,400 Bodycote International................................... 4,721
--------
Electric Utility (1.3%):
660,000 National Grid Group PLC.................................. 5,232
--------
Energy (1.3%):
344,000 British Petroleum Co. PLC................................ 5,366
--------
Engineering (1.2%):
1,332,000 Siebe PLC................................................ 4,787
--------
Food Products & Services (1.6%):
615,000 Compass Group PLC........................................ 6,583
--------
Pharmaceuticals (2.0%):
250,000 Glaxo Wellcome PLC....................................... 7,911
--------
61,314
--------
United States (3.9%):
Diversified Operations (1.2%):
72,000 Tyco International Ltd................................... 4,739
--------
Oil & Gas Exploration, Production & Services (1.0%):
82,000 Royal Dutch Petroleum, NY Shares......................... 3,854
--------
Pharmaceuticals (1.7%):
135,000 Pharmacia & Upjohn, Inc.................................. 7,028
--------
15,621
--------
Total Common Stocks 375,779
--------
Preferred Stocks (2.0%):
Germany (2.0%):
Business Services (2.0%):
15,400 SAP AG................................................... 8,043
--------
Total Preferred Stocks 8,043
--------
Cash Equivalents (3.9%):
$ 15,731 Goldman Sachs Financial Square Premium................... 15,731
--------
Total Cash Equivalents 15,731
--------
Total Investments (Cost $298,191) (a)--99.6% 399,553
--------
Other assets in excess of liabilities 0.4% 1,806
--------
Total Net Assets--100.0% $401,359
========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $106,953
Unrealized depreciation..................................... (5,591)
--------
Net unrealized appreciation................................. $101,362
========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
60
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Limited Maturity Bond Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Notes (21.9%):
$ 1,950 5.75%, 11/15/00(b)....................................... $ 1,992
13,410 6.50%, 8/31/01(b)........................................ 14,052
21,800 5.75%, 8/15/03........................................... 22,792
--------
Total U.S. Treasury Notes 38,836
--------
Government Obligations (5.6%):
Federal National Mortgage Assoc. (5.6%):
10,000 5.00%, 11/18/20.......................................... 9,885
--------
Total Government Obligations 9,885
--------
Corporate Bonds (30.6%):
Euro Dollar (8.0%):
3,750 British Gas & Finance, 8.38%, 9/8/99..................... 3,827
5,000 National Power Co. PLC, 7.12%, 7/11/01................... 5,171
5,000 SNCB Belgium Rail, 8.25%, 2/2/00......................... 5,186
--------
14,184
--------
Financial Services (11.5%):
5,000 AT&T Capital Corp., 6.41%, 8/13/99....................... 5,016
4,000 ERAC USA Finance Co, 7.00%, 6/15/00...................... 4,090
5,000 Lehman Brothers Holdings, 6.89%, 10/10/00................ 5,055
5,000 Main Place Real Estate Investment, 5.65%, 3/25/00........ 4,980
1,000 Wachovia Bank, 6.70%, 4/14/99............................ 1,005
--------
20,146
--------
Industrial Goods & Services (6.6%):
2,975 Computer Assoc. International, 6.25%, 4/15/03............ 2,968
4,700 Ingersoll-Rand, 6.34%, 12/3/01........................... 4,858
3,880 Xerox Corp., 5.56%, 10/23/01............................. 3,880
--------
11,706
--------
Industrials (1.7%):
3,000 Occidental Petroleum, 6.02%, 11/24/99.................... 3,015
--------
Telecommunications (2.8%):
5,000 US West Communications, 6.13%, 11/21/00.................. 5,050
--------
Total Corporate Bonds 54,101
--------
Asset Backed Securities (26.7%):
7,443 Amresco Snimt, 7.55%, 6/26/97............................ 7,467
4,000 Case Credit, 6.12%, 8/1/01............................... 3,960
3,800 Champion Home Equity Loan Trust, Series 1997-2, Class A2,
6.49%, 1/25/13.......................................... 3,847
15,000 Champion Home Equity Loan Trust, Series 1998-1, Class A2,
8.12%, 9/25/01.......................................... 3,038
5,000 Copelco Capital Funding Corp, Series 1997-A, Class A4,
6.47%, 4/20/05.......................................... 5,141
3,000 EQCC Home Equity Loan Trust, 1998-1, A3f, 6.23%,......... 3,014
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Asset Backed Securities, continued:
$ 2,880 GE Capital Mortgage Services, Inc., Series 1997-He4,
Class A4, 6.77%, 4/25/15............................... $ 2,934
6,040 General Electric Corp., Series A3, 6.18%, 6/25/15....... 6,050
3,074 Green Tree Financial Corp., 6.55%, 7/15/28.............. 3,121
957 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09.. 964
6,874 ICON Financial Corp., 6.19%, 9/15/06.................... 6,896
53 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08.......... 54
525 Lehman Mortgage Trust, 8.00%, 3/20/99, Series 91-92,.... 526
300 Structured Asset Securities Co., 7.50%, 8/25/26......... 301
--------
Total Asset Backed Securities 47,313
--------
Mortgage Backed Securities (7.6%):
1,100 Residential Accredit Loans, Inc., Series 1998-Qs14,
Class A2, 6.50%, 10/25/28.............................. 1,095
5,816 Residential Asset Securitization Trust, Series 1997-A1,
Class A1, 7.00%, 3/25/27............................... 5,815
2,300 SAL, Series 1998-Nc7, Class A3, 6.70%, 12/22/03......... 2,300
4,150 Saxon Asset Securities Trust, Series 1997-1, Class Af3,
7.38%, 11/25/23........................................ 4,281
--------
Total Mortgage Backed Securities 13,491
--------
Floating Rate Notes (3.8%):
5,000 AT&T Universal Credit Card Master Trust, 5.78%*,
4/19/04................................................ 5,000
1,765 HFC Home Equity Loan, 6.01%*, 10/20/07.................. 1,776
--------
Total Floating Rate Notes 6,776
--------
Cash Equivalents (1.7%):
3,039 Goldman Sachs Financial Square Premium.................. 3,039
--------
Total Cash Equivalents 3,039
--------
Short Term Securities Held as Collateral (20.8%):
Repurchase Agreements (20.8%):
36,903 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ 36,903
--------
Total Short Term Securities Held as Collateral 36,903
--------
Total Investments (Cost $209,620) (a)--118.7% 210,344
--------
Liabilities in excess of other assets (18.7)% (33,112)
--------
Total Net Assets--100.0% $177,232
========
</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 November 30, 1998.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $1,185
Unrealized depreciation....................................... (461)
------
Net unrealized appreciation................................... $ 724
======
</TABLE>
(b) All or a portion of this security has been loaned at November 30, 1998.
See notes to financial statements.
61
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Intermediate Government Obligations Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Agency Bonds (26.3%):
Federal Home Loan Bank (8.7%):
$10,000 5.63%, 3/15/01, (b)........................................ $ 10,172
5,000 5.53%, 1/15/03............................................. 5,092
--------
15,264
--------
Federal Home Loan Mortgage Corp. (3.0%):
5,000 7.44%, 9/20/06, Callable 9/20/01 @100...................... 5,307
--------
Federal National Mortgage Assoc. (14.4%):
10,000 5.63%, 3/15/01............................................. 10,174
14,000 6.39%, 9/24/07............................................. 14,976
--------
25,150
--------
Guaranteed Export Trust (0.2%):
318 6.61%, 6/15/99, Series 94-D................................ 319
--------
Total U.S. Government Agency Bonds 46,040
--------
U.S. Treasury Notes (49.6%):
10,800 5.75%, 11/15/00............................................ 11,031
8,280 6.13%, 12/31/01............................................ 8,631
9,015 6.63%, 3/31/02(b).......................................... 9,558
18,300 6.25%, 8/31/02............................................. 19,281
10,480 7.00%, 7/15/06(b).......................................... 11,922
19,210 6.50%, 10/15/06(b)......................................... 21,290
5,063 3.63%, 1/15/08(b)(c)....................................... 5,014
--------
Total U.S. Treasury Notes 86,727
--------
Government Obligations (10.4%):
Mortgage Pass Thru's (10.4%):
Federal Home Loan Mortgage Corp. (0.8%):
434 6.49%, 5/1/17.............................................. 454
923 8.75%, 4/1/17.............................................. 976
--------
1,430
--------
Federal National Mortgage Assoc. (5.6%):
1,055 11.50%, 5/1/10............................................. 1,144
2,346 13.00%, 8/15/15............................................ 2,748
1,133 8.25%, 7/1/17.............................................. 1,181
1,300 8.50%, 2/1/25.............................................. 1,361
590 8.75%, 8/1/09.............................................. 619
2,531 9.00%, 08/01/09-01/01/10................................... 2,667
--------
9,720
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Government Obligations, continued:
Government National Mortgage Assoc. (4.0%):
$ 2,200 9.00%, 9/15/04-7/15/09.................................... $ 2,345
4,369 9.50%, 12/20/13-12/20/22.................................. 4,684
--------
7,029
--------
Total Government Obligations 18,179
--------
Collateralized Mortgage Obligations (11.5%):
Federal Home Loan Mortgage Corp. (1.8%):
3,000 7.50%, 4/15/21, Series 1343--K............................ 3,066
--------
Federal National Mortgage Assoc. (8.0%):
1,576 7.50%, 3/25/21, Series 1992--171 ZC....................... 1,612
2,362 7.75%, 3/25/21, Series 1992-1............................. 2,432
2,500 8.00%, 9/25/21, Series 1992--117 LA....................... 2,575
7,000 7.50%, 8/25/22, Series 1994-93............................ 7,392
--------
14,011
--------
Ryland Acceptance Corp. (1.7%):
2,787 9.00%, 7/1/16............................................. 2,965
--------
Total Collateralized Mortgage Obligations 20,042
--------
Cash Equivalents (0.5%):
846 Goldman Sachs Financial Square Government................. 846
--------
Total Cash Equivalents 846
--------
Short Term Securities Held as Collateral (22.3%):
Repurchase Agreements (22.3%):
38,936 Paine Webber Triparty Agreement, 5.35%, 12/1/98,
(Collateralized by $27,500,
U.S. Treasury Bill, 1/14/99, market value--$27,406, and
$12,749, FNMA's, 0.00%-- 8.00%, 12/31/98--9/15/21, market
value--$12,314).......................................... 38,936
--------
Total Short Term Securities Held as Collateral 38,936
--------
Total Investments (Cost $207,377) (a)--120.6% 210,770
--------
Liabilities in excess of other assets (20.6)% (35,996)
--------
Total Net Assets--100.0% $174,774
========
</TABLE>
- -------
(a) Cost for federal tax income purposes differs from value by net unrealized
appreciation of securities as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $3,606
Unrealized depreciation....................................... (213)
------
Net unrealized appreciation................................... $3,393
======
</TABLE>
(b) All or a portion of this security has been loaned at November 30, 1998.
(c) Inflation indexed note.
See notes to financial statements.
62
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
U.S. Government Income Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Government Obligations (66.3%):
Federal Home Loan Mortgage Corp. (8.3%):
$ 2,671 8.00%, 9/1/02-3/1/22...................................... $ 2,823
3,047 8.50%, 3/1/06-11/1/18..................................... 3,243
961 8.75%, 6/1/16-7/1/17...................................... 1,016
3,262 9.00%, 9/1/01-9/1/20...................................... 3,479
233 9.25%, 3/1/01-12/1/22..................................... 249
624 9.75%, 11/1/08-4/1/09..................................... 678
3,933 10.00%, 7/1/00-9/1/16..................................... 4,197
627 10.50%, 7/1/00-11/1/02.................................... 665
160 11.50%, 7/1/99-1/1/01..................................... 172
270 12.00%, 11/1/99-11/1/01................................... 291
1,023 12.25%, 8/1/15............................................ 1,186
73 12.50%, 7/1/99-4/1/00..................................... 79
--------
18,078
--------
Federal National Mortgage Association (3.5%):
784 7.50%, 9/1/22-11/1/22..................................... 814
898 8.00%, 12/1/17-3/1/23..................................... 939
856 8.50%, 5/1/08-9/1/23...................................... 905
657 9.00%, 6/1/09-10/1/19..................................... 698
1,268 9.50%, 9/1/11............................................. 1,343
151 10.00%, 6/1/21............................................ 164
347 10.50%, 9/1/00-5/1/04..................................... 370
326 11.00%, 8/1/00-9/1/06..................................... 348
200 11.25%, 6/1/13-12/1/15.................................... 224
94 11.50%, 11/1/99-2/1/01.................................... 102
107 12.00%, 7/1/99-9/1/00..................................... 116
1,024 12.50%, 2/1/00-5/1/15..................................... 1,182
335 14.00%, 11/1/12........................................... 373
--------
7,578
--------
Government National Mortgage Association (30.0%):
404 6.50%, 11/15/23-12/15/23.................................. 411
1,047 7.00%, 10/15/22-12/15/23.................................. 1,077
902 7.50%, 5/15/22-12/15/23................................... 938
2,784 8.00%, 4/15/17-5/20/24.................................... 2,912
1,528 8.25%, 1/15/05-6/15/16.................................... 1,620
2,589 8.50%, 5/20/17-7/20/23.................................... 2,758
867 8.75%, 8/15/08-6/15/17.................................... 929
6,029 9.00%, 10/15/04-9/20/22................................... 6,416
1,817 9.25%, 5/15/16-5/15/21.................................... 1,947
17,383 9.50%, 6/15/09-11/15/21................................... 18,771
496 10.50%, 2/15/99-12/20/04.................................. 523
542 11.00%, 2/15/99-3/20/01................................... 573
813 11.50%, 1/15/99-12/15/15.................................. 909
40 11.75%, 12/15/98-5/15/99.................................. 42
3,383 12.00%, 3/15/99-5/15/18................................... 3,888
5,293 12.50%, 4/15/10-11/15/16.................................. 6,168
279 12.75%, 9/20/13-7/20/15................................... 321
2,547 13.00%, 5/15/10-6/20/15................................... 2,974
2,596 13.50%, 5/15/10-6/20/15................................... 3,092
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Government Obligations, continued:
Government National Mortgage Association, continued:
$ 2,144 14.00%, 5/15/11-2/15/15.................................. $ 2,594
91 14.50%, 9/15/12-8/15/14.................................. 110
5,282 15.00%, 6/15/11-12/15/12................................. 6,572
84 16.00%, 10/15/11-4/15/12................................. 99
117 17.00%, 11/15/11......................................... 139
--------
65,783
--------
U.S. Treasury Notes (21.5%):
1,000 5.75%, 8/15/03........................................... 1,046
11,000 5.88%, 11/15/05(b)....................................... 11,772
4,500 6.50%, 8/15/05........................................... 4,955
7,500 6.50%, 10/15/06(b)....................................... 8,312
15,400 7.00%, 7/15/06(b)........................................ 17,519
3,000 7.50%, 2/15/05(b)........................................ 3,437
--------
47,041
--------
U.S. Treasury Strips (3.0%):
10,400 0.00%, 5/15/08(b)........................................ 6,538
--------
Total Government Obligations 145,018
--------
Collateralized Mortgage Obligations (31.4%):
287 CityFed Mortgage Trust, Series 1, Class D, 10.00%,
1/1/18.................................................. 301
2,197 Drexel Burnham Lambert, Series H, Class 4, 8.50%, 4/1/17. 2,274
3,000 Federal Home Loan Mortgage Corp., Series 1265, Class J,
7.00%, 6/15/21.......................................... 3,052
1,626 Federal Home Loan Mortgage Corp., Series 1273, Class Z,
7.50%, 5/15/22.......................................... 1,657
3,000 Federal Home Loan Mortgage Corp., Series 1252, Class J,
8.00%, 5/15/22.......................................... 3,154
6,003 Federal Home Loan Mortgage Corp., Series 1311, Class J,
7.50%, 9/15/21.......................................... 6,148
7,000 Federal Home Loan Mortgage Corp., Series 1343, Class K,
7.50%, 4/15/21.......................................... 7,154
3,100 Federal National Mortgage Assoc., Series 1992-214 Pl,
7.50%, 5/25/21.......................................... 3,220
5,360 Federal National Mortgage Assoc., Series 1992-117l,
8.00%, 9/25/21.......................................... 5,521
2,107 Federal National Mortgage Assoc., Series 1992-158z,
7.75%, 3/25/21.......................................... 2,169
3,705 Federal National Mortgage Assoc., Series 1992-171 Class
ZD, 8.00%, 6/25/21...................................... 3,899
8,707 Federal National Mortgage Assoc., Series 1992-171z,
7.50%, 3/25/21.......................................... 8,905
1,702 Federal National Mortgage Assoc., Series 1992-29z, 8.00%,
2/25/22................................................. 1,781
5,000 Federal National Mortgage Assoc., Series 1993, Class 2,
7.35%, 3/25/21.......................................... 5,089
</TABLE>
Continued
63
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
U.S. Government Income Fund
(Amounts in Thousands) (Unaudited)
<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.......................................... $ 3,168
4,940 Federal National Mortgage Assoc., Series Global, 7.88%,
2/24/05................................................. 5,655
852 MDC Asset Investors Trust, Series 6, Class 8, 7.00%,..... 857
810 Prudential Bache, Series 12, Class F, 8.49%, 10/20/20.... 888
3,000 Security Mortgage Acceptance Corp.,
Series II, 9.00%, 12/1/16............................... 3,016
565 Structured Mortgage Residential Trust, 8.25%, 6/25/19.... 608
--------
Total Collateralized Mortgage Obligations 68,516
--------
Cash Equivalents (1.2%):
2,528 Goldman Sachs Financial Square Government................ 2,528
--------
Total Cash Equivalents 2,528
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Held as Collateral (21.2%):
Commercial Paper (4.6%):
$10,000 Nellie Mae Corporation, 5.16%, 12/7/98.................. $ 9,990
--------
Repurchase Agreements (16.6%):
36,439 Lehman BrothersTriparty Agreement, 5.45%, 12/1/98, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ 36,439
--------
Total Short Term Securities Held as Collateral 46,429
--------
Total Investments (Cost $258,431) (a)--120.1% 262,491
--------
Liabilities in excess of other assets (20.1)% (43,987)
--------
Total Net Assets--100.0% $218,504
========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $4,675
Unrealized depreciation....................................... (615)
------
Net unrealized appreciation................................... $4,060
======
</TABLE>
(b) All or part of this security has been loaned at November 30, 1998.
See notes to financial statements.
64
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Bond Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
U.S. Treasury Notes (11.0%):
$19,265 5.75%, 11/15/00(b)........................................ $ 19,678
5,600 5.75%, 8/15/03............................................ 5,855
20,185 6.50%, 10/15/06(b)........................................ 22,368
5,100 5.63%, 5/15/08(b)......................................... 5,425
---------
Total U.S. Treasury Notes 53,326
---------
U.S. Treasury Bonds (15.8%):
31,840 6.25%, 8/15/23(b)......................................... 35,882
26,650 6.13%, 11/15/27(b)........................................ 30,100
11,126 3.63%, 4/15/28(c)......................................... 11,084
---------
Total U.S. Treasury Bonds 77,066
---------
Government Obligations (21.6%):
Mortgage Pass Thru's (21.6%):
Federal Home Loan Mortgage Corp. (0.7%):
973 9.00%, 5/15/20............................................ 1,036
2,341 9.50%, 10/1/20............................................ 2,521
---------
3,557
---------
Federal National Mortgage Assoc. (12.0%):
4,277 9.00%, 8/1/09-11/1/24..................................... 4,507
2,845 8.25%, 7/1/17............................................. 2,963
2,531 8.50%, 7/1/25............................................. 2,650
41,748 6.50%, 8/1/27-11/1/28..................................... 42,069
6,000 6.00%, 11/15/28(d)........................................ 5,923
---------
58,112
---------
Government National Mortgage Assoc. (8.9%):
27,389 7.50%, 4/15/23-8/15/25.................................... 28,340
14,937 6.50%, 9/15/23-11/15/28................................... 15,113
---------
43,453
---------
Total Government Obligations 105,122
---------
Corporate Bonds (28.7%):
Automotive Finance (1.3%):
66,801 General Motors Acceptance Corp., 1.64%*, 7/15/27.......... 6,200
---------
Consumer Goods & Services (1.6%):
7,700 American Greetings, 6.10%, 8/1/28......................... 7,864
---------
Financial (11.1%):
3,820 Associates Corporation, 6.25%, 11/1/08.................... 3,939
7,000 AT&T Capital Corp., 6.41%, 8/13/99........................ 7,022
5,000 Cargill, Inc., 7.41%, 6/18/27............................. 5,506
5,000 Chrysler Financial Corp., 6.08%, 4/6/01................... 5,088
6,000 FNMA, 8.13%, 12/10/98..................................... 5,992
5,000 Ford Motor Credit Co., 6.00%, 1/14/03..................... 5,125
3,650 Franchise Financial Corporation of America, 8.25%......... 3,723
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Corporate Bonds, continued:
Financial, continued:
$ 5,000 Jackson National Life Insurance Co., 8.15%, 3/15/27...... $ 5,725
5,937 Lumbermen's Tiers Trust, 8.45%, 12/1/17.................. 6,652
5,000 Sears Roebuck Acceptance Corp., 6.63%, 2/25/02........... 5,138
---------
53,910
---------
Industrials (10.4%):
11,470 Armstrong World, 6.50%, 8/15/05.......................... 11,885
9,000 Computer Assoc. International, 6.25%, 4/15/03............ 8,978
8,050 ERAC USA Finance Co., 6.35%, 1/15/01..................... 8,181
5,095 Halliburton Co., 5.63%, 12/1/08.......................... 5,146
4,810 Lubrizol Corp., 5.88%, 12/1/08........................... 4,786
4,000 Raytheon Co., 5.70%, 11/1/03............................. 4,005
7,500 Williams Cos., Inc., 6.20%, 8/1/02....................... 7,622
---------
50,603
---------
Telecommunications (4.3%):
1,950 Sprint Capital, 5.70%, 11/15/03.......................... 1,955
8,200 Sprint Capital, 6.88%, 11/15/28.......................... 8,641
10,000 WorldCom, Inc., 9.38%, 11/15/04.......................... 10,387
---------
20,983
---------
Total Corporate Bonds 139,560
---------
Asset Backed Securities (13.9%):
3,952 EQCC Home Equity Loan Trust, 5.73%, 12/15/08............. 3,952
6,000 Equivantage Home Equity Loan Trust, Series 1997-4, Class
A3, 7.05%, 12/25/28..................................... 6,130
3,750 First USA Credit Card Master Trust, 5.37%*, 5/17/07...... 3,753
14,300 General Electric Corp., Series A3, 6.18%, 6/25/15........ 14,323
11,000 Green Tree Financial Corp., 7.20%, 4/15/19............... 11,316
1,848 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09... 1,862
157 Lehman FHA--Title 1 Loan Trust, 6.78%, 3/25/08........... 158
7,240 Prudential Securities Secured Financing Corp., 6.35%,
9/15/07................................................. 7,348
8,000 Residential Asset Securities Corp., Series 1998-KS3,
Class AI3, 5.91%, 8/25/22............................... 7,955
4,360 Saxon Series 98-4, Class A4, 6.40%, 5/25/26.............. 4,360
827 Structured Asset Securities Co., 7.50%, 8/25/26.......... 831
5,530 The Money Store, 5.60%*, 10/15/27........................ 5,533
---------
Total Asset Backed Securities 67,521
---------
</TABLE>
Continued
65
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Bond Fund
(Amounts in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Collateralized Mortgage Obligations (0.6%):
Federal National Mortgage Assoc. (0.6%):
$ 2,920 9.00%, 7/25/20, Series 90-84............................ $ 3,085
---------
Total Collateralized Mortgage Obligations 3,085
---------
Mortgage Backed Securities (6.5%):
5,842 Housing Securities, Inc., 7.50%, 1/25/09................ 5,920
1,419 Housing Securities, Inc., 7.50%, 3/25/09................ 1,440
6,425 PNC, Series 98-7, Class A5, 6.75%, 9/25/28.............. 6,413
5,207 Residential Accredit Loans, Inc., Series 1998-Qs14,
Class A2, 6.50%, 10/25/28.............................. 5,181
12,463 Sequoia Trust, Series 3A, 6.35%, 9/25/25................ 12,473
---------
Total Mortgage Backed Securities 31,427
---------
Cash Equivalents (3.1%):
14,876 Goldman Sachs Financial Square Premium.................. 14,876
---------
Total Cash Equivalents 14,876
---------
Short Term Securities Held as Collateral (22.5%):
Certificate of Deposit (3.1%):
15,000 Morgan Guaranty Trust of NewYork, 5.14%, 1/28/98........ 15,000
---------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Short Term Securities Held as Collateral, continued:
Commercial Paper (8.4%):
$22,000 Kaiser Foundation Hospital, 5.65%, 12/1/98............. $ 21,996
9,000 McKesson Corp., 5.75%, 12/1/98......................... 8,999
10,000 Revolving Commitment Vehicle Co., 5.31%, 1/28/99....... 9,858
---------
40,853
---------
Floating Rate Note (5.1%):
10,000 Merrill Lynch, 5.02%, 10/4/99.......................... 10,000
15,000 Salomon Smith Barney Holding Co., 5.00%, 10/28/99...... 15,000
---------
25,000
---------
Repurchase Agreements (5.9%):
28,590 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98,
(See Significant Accounting Policies, Lending
Portfolio Securities in the Notes to Financial
Statements for collateral description)................ 28,590
---------
Total Short Term Securities Held as Collateral 109,443
---------
Total Investments (Cost $593,031)(a)--123.7% 601,426
Liabilities in excess of other assets (23.7)% (115,129)
---------
Total Net Assets--100.0% $ 486,297
=========
</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
November 30, 1998.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $ 9,532
Unrealized depreciation...................................... (1,137)
-------
Net unrealized appreciation.................................. $ 8,395
=======
</TABLE>
(b) All or a portion of this security has been loaned at November 30, 1998.
(c) Inflation indexed bond.
(d) On November 30, 1998, the total cost of investments purchased on a when-
issued basis was $5,915.
See notes to financial statements.
66
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (97.2%):
Arizona (4.1%):
$ 2,825 Phoenix, 5.00%, 7/1/08................................... $ 3,005
2,000 Tempe, 5.00%, 7/1/04..................................... 2,105
--------
5,110
--------
Colorado (1.7%):
1,000 Arapahoe County School District, # 005, Cherry Creek,
5.50%, 12/15/01......................................... 1,050
1,000 Jefferson County School District, 5.25%, 12/15/05........ 1,076
--------
2,126
--------
Connecticut (5.8%):
1,770 Clean Water Fund, 6.38%, 6/1/05.......................... 2,009
1,000 Stamfort, 5.00%, 7/15/08................................. 1,071
1,880 State, 5.00%, 3/15/07.................................... 2,000
2,000 State Special Tax Obligation, 5.38%, 9/1/08.............. 2,175
--------
7,255
--------
Delaware (3.7%):
1,250 Delaware Transportation Authority, 6.00%, 7/1/06......... 1,411
2,000 State, 5.00%, 5/1/04..................................... 2,105
1,000 Transportation Authority, 7.80%, 7/1/04.................. 1,134
--------
4,650
--------
Florida (9.7%):
135 Board of Education Capital Outlay, 9.13%, 6/1/14......... 193
2,000 Board of Education, Series G, 6.90%, 5/1/03, ETM......... 2,249
1,000 Dade County, 6.00%, 7/15/04.............................. 1,108
1,630 Dade County School District, 6.50%, 2/15/06.............. 1,887
1,000 Gulf Breeze, Revenue, 4.80%, 12/1/17..................... 960
2,000 Jacksonville, 6.00%, 10/1/05............................. 2,237
1,000 Jacksonville Electric & Water Authority Revenue, 5.00%,
10/1/03................................................. 1,055
1,000 State Department of Transportation Right-of-Way, 6.00%,
7/1/07.................................................. 1,139
1,000 Tampa Sports Authority Revenue, 6.00%, 1/1/06............ 1,125
--------
11,953
--------
Georgia (2.9%):
1,200 Fayette County School District, G.O., 6.25%, 3/1/04...... 1,337
2,000 State, 6.60%, 4/1/05..................................... 2,305
--------
3,642
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Guam (1.3%):
$ 1,505 Government Highway Revenue, Series A, 5.90%, 5/1/02...... $ 1,610
--------
Hawaii (0.9%):
1,000 Hawaii State, Series CM, 6.00%, 12/1/06, FGIC............ 1,128
--------
Idaho (1.5%):
1,560 Canyon County School District, G.O., 8.13%, 7/30/03,
MBIA.................................................... 1,849
--------
Kansas (0.9%):
1,000 Department of Transportation & Highway, 7.25%, 3/1/04.... 1,158
--------
Kentucky (3.7%):
3,000 Turnpike Authority, 6.50%, 7/1/07........................ 3,514
1,000 Turnpike Authority, Economic Development, Refunding
Bonds, 5.00%, 7/1/02.................................... 1,044
--------
4,558
--------
Maryland (5.3%):
1,150 Howard County, Series A, 5.00%, 2/15/08.................. 1,232
1,000 Montgomery County, 5.70%, 7/1/05......................... 1,104
3,000 Montgomery County, 4.88%, 5/1/09......................... 3,191
1,000 Montgomery County, Series A, 5.38%, 5/1/06............... 1,091
--------
6,618
--------
Massachusetts (0.9%):
1,000 State, 5.75%, 8/1/08..................................... 1,123
--------
Minnesota (4.4%):
1,000 North Saint Paul Maplewood, 6.88%, 2/1/15, Prerefunded
2/1/05 @100............................................. 1,165
1,000 Northern Municipal Power Agency, 7.25%, 1/1/16........... 1,023
2,000 Public Facilities Water & Pollution, 5.00%, 3/1/06....... 2,125
1,000 State, 6.00%, 5/1/06..................................... 1,129
--------
5,442
--------
Missouri (4.0%):
1,535 Kansas City, G.O., 6.00%, 2/1/04......................... 1,677
495 State Environmental Energy, Water Pollution Control,
7.00%, 10/1/10.......................................... 533
1,545 State Environmental Improvements, 6.00%, 1/1/07.......... 1,745
1,000 State G.O., Series A, 6.00%, 4/1/02...................... 1,073
--------
5,028
--------
</TABLE>
Continued
67
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
New Mexico (1.8%):
$ 1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05................. $ 1,111
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07................. 1,133
--------
2,244
--------
New York (3.9%):
1,000 Municipal Assistance Corp., 6.00%, 7/1/04................ 1,101
2,000 New York City, G.O., 8.00%, 4/1/03, AMBAC................ 2,315
1,365 New York City, Transitional Financial Authority Revenue,
5.50%, 8/15/07.......................................... 1,500
--------
4,916
--------
North Carolina (3.4%):
3,000 Mecklenburg County, G.O., 5.10%, 3/1/05.................. 3,214
1,000 State School Improvements, 5.10%, 3/1/05................. 1,065
--------
4,279
--------
Ohio (4.2%):
1,020 Cleveland School District, 8.00%, 12/1/01, Callable
12/1/98 @100............................................ 1,146
1,715 State Water Revenue Bonds, 6.00%, 6/1/07................. 1,941
1,110 University of Cincinnati, General Receipts, Series T,
5.50%, 6/1/11........................................... 1,215
800 Wyoming City School District, 5.75%, 12/1/16............. 898
--------
5,200
--------
Oklahoma (2.5%):
2,865 State Turnpike Authority, Series A, 5.90%, 1/1/03,
Callable 7/1/02 @102.................................... 3,066
--------
Oregon (6.5%):
1,000 Deschutes & Jefferson School District, G.O., 6.00%,
6/1/03.................................................. 1,095
1,435 Lane County School District, G.O., 6.00%, 1/1/04......... 1,570
1,500 Portland, 5.00%, 6/1/04.................................. 1,588
1,220 Washington County School District, 7.80%, 6/1/04......... 1,453
2,000 Washington County, Refunding Bonds, 5.75%, 10/1/08....... 2,254
--------
7,960
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Puerto Rico (5.6%):
$ 5,000 Electric Power Authority, 6.50%, 7/1/06................... $ 5,825
1,000 University of Puerto Rico, 6.25%, 6/1/07.................. 1,161
--------
6,986
--------
Rhode Island (1.0%):
1,130 State, 5.00%, 8/1/06...................................... 1,201
--------
South Carolina (1.8%):
2,095 Cherokee County, 5.50%, 3/1/05............................ 2,268
--------
Tennessee (5.9%):
1,290 Memphis, G.O., 6.00%, 11/1/03............................. 1,414
1,435 Metro Government Nashville County, 5.25%, 5/15/07......... 1,553
2,000 Shelby, G.O., 5.00%, 8/1/06............................... 2,125
2,000 State, G.O., 6.00%, 5/1/05................................ 2,237
--------
7,329
--------
Texas (1.7%):
1,000 Dallas County, 5.00%, 8/15/04............................. 1,059
1,000 Dallas, G.O., 6.13%, 2/15/07, Prerefunded 2/15/03 @100.... 1,087
--------
2,146
--------
Utah (1.7%):
2,000 State Highway Improvements, 5.50%, 7/1/04................. 2,165
--------
Vermont (1.2%):
1,355 Burlington Electric Revenue Bond, 6.00%, 7/1/07........... 1,531
--------
Virginia (0.8%):
1,000 Newport News, 5.00%, 3/1/05............................... 1,055
--------
Washington (1.6%):
1,000 King County, 6.10%, 12/1/01............................... 1,002
1,000 Seattle, 5.00%, 12/1/03................................... 1,050
--------
2,052
--------
Wisconsin (2.8%):
2,000 Milwaukee, 6.00%, 2/1/07.................................. 2,260
1,170 State Public Improvements, 5.25%, 5/1/07.................. 1,261
--------
3,521
--------
Total Municipal Bonds 121,169
--------
</TABLE>
Continued
68
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Investment Companies (1.2%):
1,512,064 Provident Institutional Muni Cash Fund.................... $ 1,512
--------
Total Investment Companies 1,512
--------
Total Investments (Cost $118,191) (a)--98.4% 122,681
--------
Other assets in excess of liabilities 1.6% 1,956
--------
Total Net Assets--100.0% $124,637
========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $4,530
Unrealized depreciation....................................... (40)
------
Net unrealized appreciation................................... $4,490
======
</TABLE>
AMBAC--American Municipal Bond Assurance Corp.
ETM--Escrowed to Maturity
FGIC--Federal Guarantee Insurance Corp.
G.O.--General Obligation
MBIA--Municipal Bond Insurance Association
See notes to financial statements.
69
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (99.1%):
Michigan (91.8%):
$ 1,000 Birmingham School District, 5.50%, 11/1/04................ $ 1,081
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/08, MBIA.... 1,808
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/09, MBIA.... 1,834
1,285 Chippewa Valley School District, Refunding Bonds, 6.00%,
5/1/08, AMBAC............................................ 1,460
1,000 Chippewa Valley School District, 7.00%, 5/1/11,
Prerefunded 5/1/01 @102.................................. 1,096
2,375 Chippewa Valley School District, G.O., 7.80%, 5/1/01...... 2,604
1,000 Clarkston Commerce Schools, 6.25%, 5/1/05, FGIC........... 1,124
1,155 Clarkston Community Schools, Refunding Bonds, 5.00%,
5/1/08, AMBAC............................................ 1,223
1,150 Clinton Township Building Authority, 4.80%, 11/1/13,...... 1,169
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.............................................. 1,198
1,065 Detroit, 5.50%, 5/1/03.................................... 1,125
1,415 Detroit, Refunding Bonds, 5.50%, 4/1/07, MBIA............. 1,546
1,000 Detroit, 5.50%, 4/1/08, MBIA.............................. 1,093
1,600 Detroit, 6.25%, 7/15/11, AMBAC............................ 1,866
1,000 Detroit Michigan City School District, 5.00%, 5/1/10,
FGIC..................................................... 1,050
2,000 Detroit Revenue Bonds, G.O., 5.25%, 5/1/08, AMBAC......... 2,150
2,500 Detroit Sewage Disposal, 6.00%, 7/1/07, MBIA.............. 2,834
1,000 Detroit Sewage Disposal Revenue, 6.00%, 7/1/10, MBIA...... 1,149
1,000 Detroit Sewage Disposal Revenue, Series B, 6.00%, 7/1/09,
MBIA..................................................... 1,143
1,000 Detroit Water, 6.50%, 7/1/15, FGIC........................ 1,200
2,000 Detroit Water Supply Systems, 5.40%, 7/1/10, MBIA......... 2,190
1,000 Detroit Water Supply Systems, Series A, 6.00%, 7/1/13,.... 1,140
2,250 Detroit Water Supply Systems, Series B, 5.55%, 7/1/12,.... 2,461
1,375 East Lansing Building Authority, 6.90%, 10/1/11........... 1,440
1,350 Ecorse Public School, 6.50%, 5/1/07, FGIC................. 1,576
2,000 Farmington School District, 5.00%, 5/1/03................. 2,093
1,000 Farmington School District, 5.00%, 5/1/06................. 1,060
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,110 Flint, 6.00%, 11/1/04, MBIA............................... $ 1,229
1,125 Goodrich Area School District, G.O., 7.65%, 5/1/11,
Prerefunded 5/1/05 @102, AMBAC........................... 1,377
1,000 Grand Haven Electric, 5.20%, 7/1/06, MBIA................. 1,076
1,235 Grand Haven Public Schools, G.O., 7.00%, 5/1/07, MBIA..... 1,480
2,655 Grand Ledge Public School District, 5.25%, 5/1/09, MBIA... 2,863
1,250 Grand Ledge Public School District, G.O., 5.45%, 5/1/11,
MBIA..................................................... 1,367
2,400 Grand Rapids Public Schools, 8.00%, 5/1/99................ 2,446
1,535 Grand Rapids Sanitation Sewer System, Series A, 5.38%,
1/1/16, FGIC............................................. 1,635
1,925 Grand Rapids School District, G.O., 5.00%, 5/1/06,
Callable 5/1/01 @102..................................... 2,004
210 Grand Valley, Michigan State, 7.88%, 10/1/08.............. 217
1,500 Greater Detroit Resources Recovery, 6.25%, 12/13/08,
AMBAC.................................................... 1,733
600 Holt School District, G.O., 8.75%, 5/1/00................. 643
600 Holt School District, G.O., 8.75%, 5/1/01................. 668
1,525 Housing Development Authority, ATM, 5.75%, 10/1/04, AMBAC. 1,639
1,000 Housing Development Authority, Series A, 6.45%, 6/1/04,
Callable 6/1/02 @102..................................... 1,069
1,000 Huron Valley School District, 5.75%, 5/1/06, FGIC......... 1,106
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable
7/1/99 @100, FGIC........................................ 2,030
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, 6.13%, 7/1/07, FGIC.............................. 2,173
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, Series A, 6.00%, 6/1/03, FGIC.................... 2,173
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital,
5.88%, 5/15/03........................................... 1,559
1,000 Kalamazoo Public Library, 5.20%, 5/1/11, MBIA............. 1,070
1,650 Kalamazoo, G.O., 6.20%, 10/1/06, Callable 10/1/02 @101.5.. 1,796
1,120 Kent County, 8.00%, 12/1/98............................... 1,120
1,250 Kent County Building Authority, 6.00%, 12/1/09,
Prerefunded 12/1/98 @102................................. 1,275
5,000 Kent County Hospital Authority, Butterworth Hospital,
Series A, 7.25%, 1/15/13................................. 6,218
3,000 Kent County, G.O., 5.00%, 11/1/06......................... 3,190
</TABLE>
Continued
70
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,000 Kent Hospital Finance Authority, Revenue Bonds, 5.10%,
1/15/07.................................................. $ 1,053
500 Kentwood School District, 5.90%, 5/1/04................... 540
500 Kentwood School District, 5.90%, 5/1/04, Prerefunded
5/1/02 @102.............................................. 544
2,000 Lake Orion County School District, G.O., 7.00%, 5/1/20,
Prerefunded 5/1/05 @101, AMBAC........................... 2,365
1,000 Lansing Building Authority, 6.00%, 6/1/04, Callable 6/1/00
@102, ETM................................................ 1,051
1,000 Lansing Michigan L.T., G.O., 6.00%, 10/1/02............... 1,080
2,000 Lansing School District, G.O., 6.88%, 5/1/09, Prefunded
5/1/05 @100.............................................. 2,323
1,335 Lansing, G.O., 6.00%, 1/1/07.............................. 1,509
1,000 Livonia School District, G.O., 6.35%, 5/1/04, Callable
5/01/02 @102............................................. 1,095
1,000 Local Government Loan Program, 6.20%, 5/1/04, AMBAC....... 1,113
2,000 Michigan Municipal Bond Authority, 5.00%, 12/01/08........ 2,120
1,000 Michigan State Trunk Line, Series A, 5.25%, 11/1/12....... 1,074
1,000 Michigan State University, Series A, 5.70%, 8/15/03,
Callable 8/15/02 @101.................................... 1,075
2,075 Mona Shores School District, G.O., 6.75%, 5/1/09, FGIC.... 2,498
2,515 Mount Pleasant School District, 5.75%, 5/1/05, AMBAC...... 2,757
1,000 Municipal Bond Authority, Local Government Program, 6.90%,
5/1/99................................................... 1,032
1,000 Oakland County Community College, 6.65%, 5/1/11........... 1,111
1,000 Oakland, University of Michigan, 5.00%, 5/15/05, AMBAC.... 1,060
1,000 Paw Paw Public School District, G.O., 6.50%, 5/1/09, FGIC. 1,183
1,000 Plymouth-Canton School District, 6.50%, 5/1/05, Callable
5/1/01 @101.............................................. 1,071
1,000 Rochester, 5.75%, 5/1/08, MBIA............................ 1,118
1,000 Rochester Community School District, 5.25%, 5/1/04, FGIC.. 1,063
2,000 Rochester School District, 6.30%, 5/1/04, Prerefunded
5/1/02 @100.............................................. 2,165
1,000 Rochester School District, 6.50%, 5/1/07, Prerefunded
5/1/02 @100.............................................. 1,089
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02
@102..................................................... 1,220
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 400 Rockford School District, Refunding Bonds, 6.00%, 5/1/07,
FGIC..................................................... $ 453
2,260 Romeo Community School District, 5.25%, 5/1/06, FGIC...... 2,427
2,120 Royal Oak Hospital Financial Authority, William Beaumont
Hospital, Series G, 6.00%, 11/15/02...................... 2,284
955 St. Johns Public Schools, 5.00%, 5/1/21, FGIC............. 972
1,000 State Building Authority, 6.25%, 10/1/00, AMBAC........... 1,050
3,475 State Building Authority, 6.25%, 10/1/03, AMBAC........... 3,848
1,000 State Building Authority, 7.25%, 10/1/08, Prerefunded
10/1/99 @100............................................. 1,035
2,000 State Building Authority Revenue, 5.50%, 10/15/05......... 2,173
1,020 State Building Authority, Michigan University Adult
General Hospital, 7.00%, 12/1/08, Prerefunded 12/1/02
@100..................................................... 1,144
1,000 State Building Authority, Series II, 6.40%, 10/1/04,
Callable 10/1/01 @102.................................... 1,085
3,000 State Environmental Protection Program, G.O., 5.50%,
11/1/05.................................................. 3,277
2,500 State Environmental Protection Program, G.O., 6.25%,
11/1/07, Prerefunded
11/1/02 @102............................................. 2,769
3,250 State Environmental Protection Program, G.O., 6.25%,
11/1/12.................................................. 3,834
500 State Hospital Authority, Henry Ford, 6.00%, 9/1/11,
AMBAC.................................................... 574
2,000 State Hospital Authority, Henry Ford, 6.00%, 9/1/12,
AMBAC.................................................... 2,300
1,135 State Hospital Finance Authority, Harper Grace Hospital,
7.12%, 5/1/09, ETM....................................... 1,319
1,200 State Hospital Finance Authority, Oakwood Hospital, Series
A, 5.00%, 11/1/03, FGIC.................................. 1,259
5,000 State Hospital Finance Authority, Sisters of Mercy, 5.38%,
8/15/14, MBIA............................................ 5,387
1,000 State Hospital Revenue Bonds, 6.00%, 8/15/02.............. 1,069
1,000 State Housing Development, 6.63%, 10/15/06, Callable
10/15/02 @103, FSA....................................... 1,093
2,000 State Recreation Program, G.O., 5.75%, 11/1/01............ 2,115
1,055 State South Central Power Agency, 5.70%, 11/1/04, MBIA.... 1,155
</TABLE>
Continued
71
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 2,000 State South Central Power Agency, 5.80%, 11/1/05, MBIA.... $ 2,225
500 State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @... 523
1,005 State Trunk Line, 6.25%, 11/1/03, FGIC.................... 1,114
2,000 State Underground Storage, 6.00%, 5/1/04, AMBAC........... 2,205
1,000 State Underground Storage, 6.00%, 5/1/05, AMBAC........... 1,110
2,000 State, G.O., 5.00%, 12/1/03............................... 2,105
3,000 Strategic Fund (Detroit Edison), 7.00%, 7/15/08, MBIA..... 3,644
2,000 Strategic Fund (Detroit Edison), 6.95%, 5/1/11, FGIC...... 2,480
5,950 Strategic Fund (Ford), 7.10%, 2/1/06...................... 6,968
1,000 Traverse City Public Schools, 7.00%, 5/1/05, Prerefunded
5/1/01 @101.5............................................ 1,091
400 Traverse City School District, G.O., 9.00%, 5/1/99........ 409
1,325 Tri County School District, G.O., 6.88%, 5/1/16,
Prerefunded 5/1/01 @101.5, MBIA.......................... 1,444
1,000 Troy School District, 7.75%, 5/1/01, Prerefunded 5/1/00
@102..................................................... 1,081
500 University of Michigan, 6.00%, 4/1/05..................... 555
2,000 University of Michigan Hospital Revenue Bonds, 7.00%,
12/1/21, Prerefunded
12/1/00 @102............................................. 2,173
1,000 University of Michigan, Student Fees, 5.00%, 4/1/02....... 1,041
1,315 University of Michigan, Student Fees, Series A, 6.00%,.... 1,474
2,000 University of Michigan, Student Fees, Series B, 5.60%,
4/1/08, Callable 4/1/03 @102............................. 2,145
1,975 Utica School District, 5.60%, 5/1/05...................... 2,143
285 Wayne County Airport Revenue, AMT, 7.25%, 12/1/10, AMBAC.. 307
2,000 Wayne County Building Authority, 6.00%, 6/1/07, Callable
6/1/06 @102, MBIA........................................ 2,270
1,985 West Ottawa, 6.00%, 5/1/06, FGIC.......................... 2,226
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,680 Western Michigan School District, 5.90%, 5/1/10, MBIA.... $ 1,907
1,500 Western Michigan University, Series A, 5.40%, 7/15/08,
Callable 7/15/03 @105, FGIC............................. 1,598
1,000 Western Township Utilities Authority, 6.00%, 1/1/00, FSA. 1,027
1,000 Wyandotte City School District, G.O., 6.90%, 5/1/16,
Prerefunded 5/1/01 @102................................. 1,094
3,000 Wyandotte Electric Revenue, 6.25%, 10/1/08, MBIA......... 3,468
--------
215,287
--------
Puerto Rico (6.7%):
1,000 Commonwealth, Aqueduct & Sewer Authority, 6.00%, 7/1/07,
MBIA.................................................... 1,144
4,000 Commonwealth, G.O., 6.25%, 7/1/09, MBIA.................. 4,704
2,000 Commonwealth, G.O., 6.25%, 7/1/10, MBIA.................. 2,358
500 Commonwealth, G.O., 6.25%, 7/1/12, MBIA.................. 596
1,250 Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA.. 1,438
4,000 Public Buildings Authority, 5.50%, 7/1/07, FSA........... 4,430
1,000 University of Puerto Rico, 6.25%, 6/1/07, MBIA........... 1,161
--------
15,831
--------
Virgin Islands (0.6%):
1,340 Public Finance Authority, 7.00%, 10/1/04, ETM............ 1,494
--------
Total Municipal Bonds 232,612
--------
Investment Companies (0.2%):
477,887 Federated Michigan Tax Free Money Market................. 478
--------
Total Investment Companies 478
--------
Total Investments (Cost $218,385)(a)--99.3% 233,090
--------
Other assets in excess of liabilities 0.7% 1,570
--------
Total Net Assets--100.0% $234,660
========
</TABLE>
Continued
72
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares) (Unaudited)
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $14,706
Unrealized depreciation...................................... (1)
-------
Net unrealized appreciation.................................. $14,705
=======
</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
See notes to financial statements.
73
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks (22.3%):
Advertising (0.1%):
400 HA-LO Industries, Inc.(b).................................. $ 13
-------
Appliances & Household Products (0.0%):
200 Windmere Durable Holdings.................................. 1
-------
Banking (0.5%):
250 First Tennessee National Corp. ............................ 8
100 Marshall & Ilsley Corp. ................................... 5
200 Old Kent Financial Corp. .................................. 9
250 SouthTrust Corp. .......................................... 9
600 State Street Corp.(c)...................................... 41
100 Union Planters Corp. ...................................... 5
200 Zions Bancorp. ............................................ 10
-------
87
-------
Broadcasting & Publishing (0.1%):
500 CanWest Global Communications Corp. ....................... 6
300 Citadel Communications(b).................................. 7
300 Clear Channel Communications, Inc. ........................ 14
-------
27
-------
Broadcasting/Cable (0.1%):
100 Cablevision Systems(b)..................................... 4
250 Comcast Corp.--Class A..................................... 12
-------
16
-------
Business Services (1.4%):
600 Automatic Data Processing, Inc. ........................... 45
500 Ceridian Corp.(c).......................................... 33
300 Cintas Corp. .............................................. 17
300 FYI, Inc.(b)............................................... 9
500 Hagler Bailly, Inc.(b)..................................... 9
550 IMS Health, Inc. .......................................... 37
500 International Telecom Date Systems(b)...................... 12
100 Lason, Inc.(b)(c).......................................... 6
300 Metzler Group, Inc.(b)..................................... 12
600 NCO Group, Inc.(b)......................................... 22
300 NOVA Corp.(b).............................................. 10
300 Paychex, Inc. ............................................. 15
200 Pittston Brink's Group..................................... 6
300 QRS Corp.(b)............................................... 13
100 Robert Half International, Inc. ........................... 5
300 SM&A Corp.(b).............................................. 4
400 SunGard Data Systems, Inc.(b).............................. 13
-------
268
-------
Chemicals (0.2%):
800 Monsanto Co. .............................................. 36
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Commercial Services (0.2%):
300 Boron Lepore & Assoc.(b)................................... $ 9
200 Central Parking Corp. ..................................... 6
500 Iron Mountain, Inc.(b)..................................... 15
-------
30
-------
Computer Hardware (0.3%):
200 Apple Computer(b)(c)....................................... 6
200 IBM........................................................ 33
400 Insight Enterprises(b)..................................... 17
300 Mercury Computer Systems, Inc.(b).......................... 7
-------
63
-------
Computer Services (0.1%):
500 Axnet Technologies(b)...................................... 13
200 Memco Software(b).......................................... 3
300 Pegasystems(b)............................................. 2
-------
18
-------
Computer Software & Peripherals (1.4%):
300 Apex PC Solutions, Inc.(b)................................. 8
400 Aspen Technologies, Inc.(b)(c)............................. 6
900 BMC Software, Inc.(b)...................................... 45
50 Citrix Systems, Inc.(b).................................... 4
350 Datastream Systems, Inc.(b)................................ 4
500 Discreet Logic, Inc.(b).................................... 8
1,450 HBO & Company(c)........................................... 35
300 Infinium Software, Inc.(b)................................. 2
100 Lexmark International Group(b)............................. 8
900 Microsoft, Inc.(b)......................................... 109
100 Network Appliance, Inc.(b)................................. 8
200 New Dimension Software(b)(c)............................... 7
400 Quadramed Corp.(b)(c)...................................... 10
150 VERITAS Software Corp.(b).................................. 9
100 Wind River System, Inc.(b)(c).............................. 5
-------
268
-------
Consumer Goods & Services (0.8%):
500 Clorox Co. ................................................ 56
200 DVI, Inc.(b)............................................... 4
500 Gillette Co. .............................................. 23
800 Procter & Gamble Co. ...................................... 69
-------
152
-------
Correctional Facilities (0.1%):
700 Wackenhut Corrections Corp.(b)............................. 19
-------
Data Processing & Reproduction (0.3%):
500 Deltek Systems, Inc.(b).................................... 9
250 Fiserv, Inc.(b)............................................ 11
</TABLE>
Continued
74
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Data Processing & Reproduction, continued:
500 INSpire Insurance Solutions(b)............................ $ 16
300 Sterling Commerce, Inc.(b)(c)............................. 11
-------
47
-------
Diversified Operations (0.3%):
900 Tyco International Ltd. .................................. 59
-------
Educational Services (0.1%):
250 Apollo Group, Inc.(b)(c).................................. 8
375 Sylvan Learning Systems, Inc.(b).......................... 11
-------
19
-------
Electrical & Electronic (0.9%):
700 Emerson Electric Co. ..................................... 46
800 General Electric Co. ..................................... 72
200 Jabil Circuit, Inc.(b).................................... 12
200 SDL, Inc.(b).............................................. 4
150 Solectron Corp.(b)(c)..................................... 10
550 Tandy, Inc. .............................................. 25
-------
169
-------
Energy (0.0%):
600 Key Energy Group, Inc.(b)................................. 4
-------
Environmental Services (0.3%):
400 Allied Waste Industries................................... 8
300 Casella Waste Systems, Inc., Series A(b).................. 9
900 Waste Management, Inc. ................................... 39
-------
56
-------
Financial Services (1.2%):
400 American Express Co. ..................................... 40
500 Associates First Capital Corp. ........................... 39
700 Concord EFS, Inc.(b)...................................... 22
300 Finova Group, Inc. ....................................... 16
800 Franchise Mortgage Acceptance Co. ........................ 8
900 Freddie Mac............................................... 54
200 Healthcare Financial Partners, Inc.(b).................... 7
1,650 MBNA Corp.(c)............................................. 37
-------
223
-------
Food & Beverage (0.2%):
500 The Coca-Cola Co. ........................................ 35
-------
Food & Household Products (0.1%):
400 Albertsons, Inc.(c)....................................... 23
Food Products & Services (0.5%):
400 Kroger Co. ............................................... $ 21
600 NBTY, Inc.(b)............................................. 4
1,400 Safeway, Inc.(b).......................................... 74
-------
99
-------
Funeral Services (0.4%):
500 Equity Corp.
International............................................ 13
1,450 Service Corp.
International............................................ 54
500 Stewart
Enterprises(c)........................................... 11
-------
78
-------
Health Care - Services (0.7%):
400 ABR Information
Services, Inc.(b)(c)..................................... 7
1,000 American Oncology
Resources, Inc.(b)....................................... 11
400 Carematrix
Corp.(b)(c).............................................. 11
200 Concentra Managed
Care, Inc.(b)............................................ 2
200 HCR Manor Care,
Inc.(b).................................................. 6
525 Health Management
Associates, Inc.(b)...................................... 11
2,150 HEALTHSOUTH Corp.(b)...................................... 29
550 Medquist, Inc.(b)......................................... 17
300 Omnicare, Inc.(c)......................................... 9
500 Orthodontic Centers of
America, Inc.(b)......................................... 10
100 Quintiles
Transnational
Corp.(b)(c).............................................. 5
300 Total Renal Care
Holdings, Inc.(b)(c)..................................... 8
-------
126
-------
Industrial Goods & Services
(0.4%):
300 Dycom(b).................................................. 12
300 Ecolab, Inc. ............................................. 9
300 MSC Industrial Direct
Co., Inc. ............................................... 7
500 United Technologies
Corp.(c)................................................. 54
-------
82
-------
Insurance (0.9%):
900 Allstate Corp. ........................................... 37
525 American International
Group, Inc.(c)........................................... 49
700 Annuity & Life Re......................................... 18
150 Nationwide Financial
Services, Inc. .......................................... 7
625 SunAmerica, Inc. ......................................... 50
350 Torchmark Corp. .......................................... 13
20 Waddell & Reed
Financial--Class A....................................... --(d)
86 Waddell & Reed
Financial--Class
B(b)(c).................................................. 2
-------
176
-------
Machinery & Equipment (0.1%):
600 Rental Service
Corp.(b)................................................. 13
-------
</TABLE>
Continued
75
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Manufactured Housing (0.0%):
300 Modtech, Inc.(b)........................................... $ 6
-------
Manufacturing - Consumer Goods (0.2%):
400 Mattel(c).................................................. 14
600 Newell Co. ................................................ 26
-------
40
-------
Medical Equipment & Supplies (0.6%):
150 Biomatrix, Inc.(b)......................................... 7
250 Guidant Corp. ............................................. 21
300 Henry Schein, Inc.(b)...................................... 11
500 Medtronic, Inc.(b)......................................... 34
300 Molecular Devices Corp.(b)................................. 5
200 Sabratek Corp.(b)(c)....................................... 3
800 Serologicals Corp.(b)...................................... 24
-------
105
-------
Medical-Hospital Services (0.0%):
343 NCS Healthcare, Inc.(b).................................... 7
100 Safeskin Corp.(b).......................................... 2
-------
9
-------
Office Equipment & Services (0.4%):
500 Hewlett-Packard Co. ....................................... 31
400 Xerox Corp. ............................................... 43
-------
74
-------
Oil & Gas (0.2%):
800 Halliburton Co. ........................................... 24
300 Schlumberger Ltd. ......................................... 13
-------
37
-------
Oilfield Services & Equipment (0.0%):
400 Omni Energy Services(b).................................... 4
-------
Pharmaceuticals (2.3%):
100 Biogen..................................................... 8
250 Bristol Myers Squibb Co. .................................. 31
1,000 Eli Lilly & Co. ........................................... 89
250 Forest Laboratories(b)..................................... 12
450 Johnson & Johnson.......................................... 37
600 Jones Medical Industries, Inc.(c).......................... 22
500 King Pharmaceuticals, Inc.(b).............................. 8
250 Mylan Laboratories(c)...................................... 8
350 Parexel International Corp.(b)............................. 9
650 Pfizer, Inc. .............................................. 72
450 Schering Plough Corp. ..................................... 48
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Pharmaceuticals, continued:
1,050 Warner-Lambert Co. ........................................ $ 78
200 Watson Pharmaceutical, Inc.(b)............................. 11
-------
433
-------
Printing & Publishing (0.2%):
1,000 American Bank Note Holographics............................ 14
400 Consolidated Graphics, Inc.(b)............................. 23
-------
37
-------
Resorts & Entertainment (0.5%):
800 Carnival Cruise Lines...................................... 28
500 Time Warner Inc. .......................................... 53
600 Vistana, Inc.(b)........................................... 8
-------
89
-------
Retail Stores (2.5%):
550 CompUSA, Inc.(b)........................................... 8
50 Consolidated Stores Corp.(b)............................... 1
750 Costco Companies, Inc. .................................... 47
1,000 CVS Corp. ................................................. 49
700 Dayton Hudson Corp. ....................................... 32
700 Family Dollar Stores....................................... 14
300 Fred's, Inc. .............................................. 4
1,650 Home Depot, Inc. .......................................... 82
300 Linens 'N Things, Inc.(b).................................. 9
1,000 Lowe's Cos.(c)............................................. 42
550 Office Depot, Inc.(b)...................................... 18
500 Renter's Choice, Inc.(b)................................... 12
200 Ross Stores, Inc. ......................................... 7
300 The Men's Wearhouse, Inc.(b)............................... 8
500 Wal-Mart................................................... 38
1,300 Walgreen Co. .............................................. 70
-------
441
-------
Semiconductors (0.4%):
100 ATMI, Inc.(b).............................................. 2
600 Intel Corp. ............................................... 64
300 Vitesse Semiconductor Corp.(b)(c).......................... 11
-------
77
-------
Technology (0.4%):
150 Engineering Animation, Inc.(b)............................. 6
100 Gemstar International Group Limited(b)..................... 6
300 Macrovision Corp.(b)....................................... 11
154 Maxwell Technologies, Inc. ................................ 4
300 Sanmina Corp.(b)........................................... 15
</TABLE>
Continued
76
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Technology, continued:
100 Symbol Technologies, Inc. ................................ $ 5
200 Symix Systems(b).......................................... 4
200 Uniphase Corp.(b)(c)...................................... 11
400 Visio Corp.(b)............................................ 14
-------
76
-------
Telecommunications - Services & Equipment (2.4%):
1,000 AirTouch Communications, Inc.(b).......................... 57
250 Bell South................................................ 22
250 Century Telephone Enterprise.............................. 14
1,200 Cisco Systems, Inc.(b).................................... 90
200 Comverse(b)............................................... 12
232 Genesys Telecomm Labs, Inc.(b)(c)......................... 7
250 GTE Corp. ................................................ 16
850 Lucent Technologies, Inc. ................................ 73
1,000 MCI Worldcom, Inc.(b)..................................... 59
200 McLeod USA, Inc.(b)....................................... 6
400 Pacific Gateway Exchange, Inc.(b)(c)...................... 18
300 Qwest Communications International, Inc.(b)............... 12
1,000 SBC Communications, Inc. ................................. 48
200 World Access, Inc.(b)..................................... 4
-------
438
-------
Wholesale Distribution (0.1%):
1,300 Brightpoint, Inc.(b)...................................... 20
-------
Wholesale Distribution - Pharmaceuticals (0.4%):
100 Allegiance Corp. ......................................... 4
1,050 Cardinal Health, Inc. .................................... 72
-------
76
-------
Total Common Stocks 4,169
-------
U.S. Government Agencies (8.6%):
Federal Home Loan Mortgage Corp. (8.6%):
$1,600 4.80%, 12/2/98............................................ 1,600
-------
Total U.S. Government Agencies 1,600
-------
Corporate Bonds (20.9%):
Financial Services (8.9%):
200 Associates Corp., 5.75%, 11/1/03.......................... 203
110 Chrysler Financial, 5.69%, 11/15/01....................... 111
200 Countrywide Home, 6.84%, 10/22/04......................... 206
500 EQCC Home Equity Loan Trust, 1998-1, A3F, 6.23%, 12/15/12. 502
30 Ford Motor Credit Co., 6.00%, 1/14/03..................... 31
45 Franchise Financial Corporation of America, 8.25%,........ 46
175 General Motors Acceptance Corp., 6.38%, 12/1/01........... 179
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$ 160 Prudential Securities Secured Financing Corp., 6.35%,
9/15/07.................................................. $ 162
108 Residential Accredit Loans, Inc., Series 1998-Qs14, Class
A2, 6.50%, 10/25/28...................................... 108
100 Salomon Smith Barney, 6.25%, 1/15/05...................... 101
-------
1,649
-------
Food & Household Products (1.3%):
250 Nabisco, Inc., 6.38%, 2/1/35.............................. 246
-------
Industrial (1.4%):
249 Amoco Canada, 6.75%, 2/15/05.............................. 267
-------
Industrial Goods & Services (7.4%):
110 Apache Corp., 9.25%, 6/1/02............................... 122
300 Armstrong World, 6.35%, 8/15/03........................... 310
280 Azko Noble, 6.00%, 11/15/03............................... 283
230 Computer Assoc. International, 6.25%, 4/15/03............. 229
140 Lubrizol Corp., 5.88%, 12/1/08............................ 139
85 Raytheon Co., 5.70%, 11/1/03.............................. 85
125 Ryder Systems, 6.60%, 11/15/05............................ 127
80 Williams Cos., Inc., 6.20%, 8/1/02........................ 81
-------
1,376
-------
Resorts & Entertainment (0.6%):
105 Time Warner Entertainment, 9.63%, 5/1/02.................. 119
-------
Telecommunications - Services & Equipment (1.3%):
250 Sprint Capital, 5.70%, 11/15/03........................... 251
-------
Total Corporate Bonds 3,908
-------
Asset Backed Securities (2.7%):
77 Banc One Auto Grantor Trust, 6.27%, 11/20/03.............. 78
200 Discover Card Master Trust, 6.05%, 8/18/08................ 204
220 SAL, Series 1998-Nc7, Class A3, 6.70%, 12/22/03........... 220
-------
Total Asset Backed Securities 502
U.S. Treasury Notes (41.0%):
2,695 5.75%, 11/15/00(c)........................................ 2,753
2,755 6.25%, 8/31/02............................................ 2,903
100 5.75%, 8/15/03............................................ 105
1,730 6.50%, 10/15/06(c)........................................ 1,917
-------
Total U.S. Treasury Notes 7,678
-------
Cash Equivalent (3.9%):
725 Goldman Sachs Financial Square Premium.................... 725
-------
Total Cash Equivalent 725
-------
</TABLE>
Continued
77
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Conservative Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- -------
<C> <S> <C>
Short Term Securities Held as Collateral (24.8%):
Repurchase Agreements (24.8%):
$4,636 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98 (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ $ 4,636
-------
Total Short Term Securities Held As Collateral 4,636
-------
Total Investments (Cost $22,359)(a)--124.2% 23,218
Liabilities in excess of other assets (24.2)% (4,530)
-------
Total Net Assets--100.0% $18,688
=======
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation........................................ $ 990
Unrealized depreciation........................................ (131)
-----
Net unrealized appreciation.................................... $ 859
=====
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at November 30, 1998.
(d) Market value is less then $1,000.
See notes to financial statements.
78
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (43.4%):
Advertising (0.1%):
11,050 HA-LO Industries, Inc.(b)................................. $ 353
--------
Appliances & Household Products (0.0%):
5,700 Windmere Durable Holdings................................. 35
--------
Banking (0.8%):
6,300 First Tennessee National Corp.(c)......................... 211
2,700 Marshall & Ilsley Corp.................................... 138
5,100 Old Kent Financial Corp. ................................. 219
5,500 SouthTrust Corp. ......................................... 202
16,000 State Street Corp.(c)..................................... 1,098
1,800 Union Planters Corp....................................... 86
4,100 Zions Bancorporation...................................... 207
--------
2,161
--------
Broadcasting & Publishing (0.5%):
13,600 CanWest Global Communications Corp. ...................... 168
8,100 Citadel Communications(b)................................. 194
7,300 Clear Channel Communications, Inc......................... 341
8,350 Consolidated Graphics, Inc. .............................. 482
--------
1,185
--------
Broadcasting/Cable (0.2%):
4,100 Cablevision Systems(b)(c)................................. 170
6,800 Comcast Corp., Class A.................................... 330
--------
500
--------
Business Services (2.1%):
12,400 Automatic Data Processing, Inc............................ 954
7,300 Boron Lepore & Associates(b)(c)........................... 224
12,700 Ceridian Corp.(c)......................................... 826
7,400 Cintas Corp. ............................................. 407
8,200 FYI, Inc.................................................. 258
11,900 Hagler Bailly, Inc.(b)(c)................................. 216
5,800 International Telecommunications Data Systems(b).......... 143
2,200 Lason, Inc.(b)(c)......................................... 135
5,000 Metzler Group, Inc.(b).................................... 208
13,550 NCO Group, Inc.(b)........................................ 500
7,700 Nova Corp.(b)(c).......................................... 245
7,250 Paychex, Inc.............................................. 361
4,500 Pittston Brink's Group.................................... 135
7,000 QRS Corp.................................................. 295
3,900 Robert Half International, Inc............................ 183
5,500 SM&A Corp.(b)............................................. 69
11,400 SunGard Data Systems, Inc.(b)............................. 365
--------
5,524
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued
Commercial Services (0.2%):
4,600 Central Parking Corp.(c).................................. $ 135
12,900 Iron Mountain, Inc.(b).................................... 377
--------
512
--------
Computer Hardware (0.6%):
4,500 Apple Computer(b)(c)...................................... 144
3,900 IBM....................................................... 643
10,650 Insight Enterprises(b).................................... 449
9,200 Mercury Computer Systems, Inc.(b)......................... 205
--------
1,441
--------
Computer Software & Peripherals (2.7%):
5,600 Apex PC Solutions, Inc.(b)................................ 145
9,800 Aspen Technologies, Inc.(b)(c)............................ 138
13,300 Axnet Technologies(b)..................................... 347
21,600 BMC Software(b)........................................... 1,102
2,600 Citrix Systems, Inc.(b)................................... 216
10,800 Datastream Systems, Inc.(b)............................... 109
36,400 HBO & Company(c).......................................... 907
5,800 Infinium Software, Inc.(b)................................ 37
2,300 Lexmark International Group(b)............................ 176
23,500 Microsoft Inc.(b)......................................... 2,866
2,900 Network Appliance, Inc.(b)................................ 218
6,000 New Dimension Software(c)................................. 200
7,300 Pegasystems(b)(c)......................................... 48
5,650 VERITAS Software Corp.(b)(c).............................. 338
2,400 Wind River System, Inc.(b)(c)............................. 112
--------
6,959
--------
Consumer Goods & Services (1.9%):
15,400 Clorox Co.(c)............................................. 1,710
5,900 DVI, Inc.(b).............................................. 104
14,500 Gillette Co............................................... 666
2,700 Photronics, Inc.(b)(c).................................... 54
23,900 Procter & Gamble Co....................................... 2,095
5,500 Unilever.................................................. 425
--------
5,054
--------
Correctional Facilities (0.2%):
18,600 Wackenhut Corrections Corp.(b)(c)......................... 502
--------
Data Processing & Reproduction (0.3%):
12,550 Deltek Systems, Inc.(b)................................... 221
6,950 Fiserv, Inc.(b)........................................... 308
8,200 Sterling Commerce, Inc.(b)(c)............................. 297
--------
826
--------
</TABLE>
Continued
79
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- --------
Common Stocks, continued
Diversified Operations (1.2%):
<C> <S> <C>
21,200 Bodycote
International(b)........................................ $ 306
13,100 IMS Health, Inc.......................................... 870
28,500 Tyco International
Ltd. ................................................... 1,875
--------
3,051
--------
Educational Services (0.2%):
6,900 Apollo Group,
Inc.(b)(c).............................................. 223
11,450 Sylvan Learning
Systems, Inc.(b)(c)..................................... 332
--------
555
--------
Electrical & Electronic (1.7%):
19,200 Emerson Electric......................................... 1,248
21,700 General Electric Co...................................... 1,964
4,500 Jabil Circuit,
Inc.(b)................................................. 261
1 Molex, Inc............................................... --(d)
6,100 SDL, Inc.(b)............................................. 136
3,700 Solectron Corp.(b)(c).................................... 245
14,800 Tandy, Inc............................................... 667
--------
4,521
--------
Environmental Services (0.6%):
10,000 Allied Waste
Industries.............................................. 204
7,100 Casella Waste Systems,
Inc., Series A(b)....................................... 222
24,000 Waste Management,
Inc..................................................... 1,029
--------
1,455
--------
Financial Services (2.8%):
13,400 American Express Co. .................................... 1,341
19,300 Associates First
Capital Corp............................................ 1,502
21,525 Concord EFS,
Inc.(b)(c).............................................. 685
23,000 Federal Home Loan
Mortgage Corp. ......................................... 1,392
8,900 Finova Group, Inc........................................ 470
17,700 Franchise Mortgage
Acceptance Co.(b)....................................... 170
4,100 Healthcare Financial
Partners, Inc.(b)(c).................................... 135
65,400 MBNA Corp.(c)............................................ 1,484
518 Waddell & Reed
Financial--Class A...................................... 12
2,229 Waddell & Reed
Financial--Class
B(b)(c)................................................. 52
--------
7,243
--------
Food & Beverage (0.4%):
15,300 The Coca-Cola Co. ....................................... 1,072
--------
Food & Household Products (0.2%):
10,500 Albertsons, Inc.(c)...................................... 599
--------
Food Products & Services (1.2%):
40,500 BPS Compass Group........................................ 434
10,100 Kroger Co................................................ 536
17,400 NBTY, Inc.(b)............................................ 107
37,300 Safeway, Inc.(b)(c)...................................... 1,969
--------
3,046
--------
Funeral Services (0.8%):
12,400 Equity Corp. International(b)............................ $ 321
38,600 Service Corp. International(c)........................... 1,442
12,900 Stewart Enterprises(c)................................... 288
--------
2,051
--------
Health Care - Services (1.7%):
11,100 ABR Information Services, Inc.(c)........................ 189
23,800 American Oncology Resources, Inc.(b)..................... 266
10,000 Carematrix Corp.(b)(c)................................... 280
6,200 Concentra Managed Care, Inc.(b).......................... 73
5,700 HCR Manor Care, Inc.(b).................................. 181
14,225 Health Management Assoc.(b).............................. 309
54,700 HEALTHSOUTH Corp.(b)(c).................................. 734
17,100 Medquist, Inc.(b)........................................ 519
10,343 NCS Healthcare, Inc.(b)(c)............................... 209
8,000 Omnicare, Inc.(c)........................................ 229
12,800 Orthodontic Centers of America, Inc.(b).................. 245
7,600 Parexel International Corp.(b)........................... 198
3,800 Quintiles Transnational Corp.(b)(c)...................... 190
16,325 Serologicals Corp.(b).................................... 480
1,300 Sunrise Assisted Living, Inc............................. 56
7,300 Total Renal Care Holdings, Inc.(b)(c).................... 194
--------
4,352
--------
Industrial Goods & Services (1.0%):
6,400 Ecolab, Inc. ............................................ 198
20,600 Monsanto Co.............................................. 933
8,500 MSC Industrial Direct Co.(b)............................. 202
12,600 United Technologies Corp.(c)............................. 1,351
--------
2,684
--------
Insurance (2.6%):
28,900 Allstate Corp............................................ 1,178
14,525 American International Group, Inc.(c).................... 1,365
17,900 Annuity and Life Re...................................... 454
9,100 Inspire Insurance Solutions(b)........................... 305
4,500 Nationwide Financial Services, Inc....................... 217
35,700 SunAmerica, Inc. ........................................ 2,829
9,100 Torchmark Corp. ......................................... 346
--------
6,694
--------
Manufactured Housing (0.0%):
6,750 Modtech, Inc.(b)......................................... 128
--------
Manufacturing - Consumer Goods (0.4%):
10,100 Mattel(c)................................................ 349
15,600 Newell Cos., Inc.(c)..................................... 690
--------
1,039
--------
</TABLE>
Continued
80
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued
Medical Equipment & Supplies (0.9%):
4,000 Biomatrix Inc.(b)(c)...................................... $ 194
6,600 Guidant Corp.............................................. 566
7,200 Henry Schein, Inc.(b)..................................... 256
13,500 Medtronic, Inc............................................ 914
7,500 Molecular Devices Corp.(b)................................ 134
9,000 Quadramed Corp.(b)........................................ 216
4,800 Sabratek Corp.(b)(c)...................................... 81
--------
2,361
--------
Medical-Hospital Services (0.0%):
2,300 Safeskin Corp.(b)......................................... 44
--------
Office Equipment & Services (0.7%):
10,300 Hewlett-Packard Co.(c).................................... 646
10,500 Xerox Corp.(c)............................................ 1,129
--------
1,775
--------
Oil & Gas (0.5%):
21,500 Halliburton Co............................................ 632
6,000 Royal Dutch Petroleum, NY Shares.......................... 282
8,100 Schlumberger Ltd.......................................... 362
--------
1,276
--------
Oilfield Services & Equipment (0.1%):
10,600 Key Energy Group, Inc.(b)................................. 66
12,200 Omni Energy Services(b)................................... 121
--------
187
--------
Pharmaceuticals (4.4%):
1,800 Biogen.................................................... 137
6,600 Bristol Myers Squibb Co................................... 809
24,400 Eli Lilly & Co............................................ 2,187
8,000 Forest Laboratories(b).................................... 373
10,900 Johnson & Johnson......................................... 886
14,700 Jones Pharma Incorporation(c)............................. 529
13,500 King Pharmaceuticals, Inc.(b)............................. 203
5,900 Mylan Laboratories(c)..................................... 196
18,100 Pfizer, Inc............................................... 2,020
10,000 Pharmacia & Upjohn Inc.................................... 521
11,700 Schering Plough Corp...................................... 1,245
27,100 Warner-Lambert Co.(c)..................................... 2,046
5,600 Watson Pharmaceutical, Inc.(b)............................ 302
--------
11,454
--------
Printing & Publishing (0.1%):
24,100 American Bank Note Holographics........................... 325
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued
Rental Equipment Furniture (0.2%):
12,100 Rental Service Corp.(b)................................... $ 256
11,400 Renter's Choice, Inc.(b).................................. 275
--------
531
--------
Resorts & Entertainment (0.9%):
24,900 Carnival Cruise Lines..................................... 859
12,000 Time Warner, Inc.......................................... 1,269
14,700 Vistana, Inc.(b).......................................... 208
--------
2,336
--------
Retail Stores (4.3%):
14,500 CompUSA, Inc.(b).......................................... 215
2,700 Consolidated Stores Corp.(b).............................. 58
19,100 Costco Companies Inc.(c).................................. 1,199
24,200 CVS Corp. ................................................ 1,195
17,700 Dayton Hudson Corp.(c).................................... 797
18,800 Family Dollar Stores...................................... 377
9,000 Fred's, Inc............................................... 127
40,450 Home Depot, Inc. ......................................... 2,012
9,800 Linens 'N Things, Inc.(b)................................. 300
29,400 Lowe's Cos.(c)............................................ 1,242
15,900 Office Depot, Inc.(b)(c).................................. 517
5,200 Ross Stores, Inc.......................................... 189
6,650 The Men's Wearhouse, Inc.(b).............................. 168
12,100 Wal-Mart.................................................. 911
33,400 Walgreen Co............................................... 1,793
--------
11,100
--------
Semiconductors (0.7%):
3,100 ATMI, Inc.(b)............................................. 59
14,100 Intel Corp. .............................................. 1,518
7,600 Vitesse Semiconductor Corp.(b)(c)......................... 271
--------
1,848
--------
Technology (0.9%):
5,200 Engineering Animation, Inc.(b)(c)......................... 203
1,900 Gemstar International Group Ltd.(b)....................... 115
6,700 Macrovision Corp.(b)...................................... 244
5,756 Maxwell Technologies, Inc................................. 153
13,000 Sanmina Corp.(b)(c)....................................... 649
3,800 Symbol Technologies, Inc.................................. 185
4,700 Symix Systems(b).......................................... 94
4,800 Uniphase Corp.(b)......................................... 260
12,500 Visio Corp.(b)............................................ 442
--------
2,345
--------
</TABLE>
Continued
81
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued
Telecommunications - Services & Equipment (4.3%):
24,700 AirTouch Communications, Inc.(b)....................... $ 1,413
7,100 Bell South............................................. 619
6,700 Century Telephone Enterprise........................... 382
30,750 Cisco Systems, Inc.(b)(c).............................. 2,318
4,300 Comverse(b)............................................ 247
6,700 Dycom(b)............................................... 263
5,821 Genesys Telecomm Labs, Inc.(b)......................... 167
5,400 GTE Corp............................................... 335
22,700 Lucent Technologies(c)................................. 1,954
22,500 MCI WorldCom, Inc. .................................... 1,328
5,400 McLeod USA, Inc.(b)(c)................................. 167
9,550 Pacific Gateway Exchange, Inc.(b)(c)................... 427
7,100 Qwest Communications International(b).................. 284
26,300 SBC Communications, Inc.(c)............................ 1,261
3,500 World Access, Inc.(b).................................. 71
--------
11,236
--------
Wholesale Distribution (0.2%):
39,066 Brightpoint, Inc.(b)................................... 586
--------
Wholesale Distribution - Pharmaceuticals (0.8%):
2,700 Allegiance............................................. 109
30,600 Cardinal Health, Inc.(c)............................... 2,100
--------
2,209
--------
Total Common Stocks 113,155
--------
Foreign Common Stocks (9.1%):
Australia (0.2%):
Banking (0.1%):
22,000 National Australia Bank Ltd. .......................... 329
--------
Real Estate (0.1%):
13,000 Lend Lease Corp. ...................................... 318
--------
647
--------
Belgium (0.3%):
Diversified Operations (0.1%):
700 Bel Barco N.V. ........................................ 188
--------
Retail Stores/Catalog (0.2%):
700 Colruyt SA(b).......................................... 546
--------
734
--------
Canada (0.2%):
Aerospace/Defense (0.1%):
15,000 Bombardier, Inc., Class B.............................. 196
--------
Computer Software (0.1%):
13,500 Discreet Logic, Inc.(b)................................ 212
--------
408
--------
Denmark (0.1%):
Telecommunications (0.1%):
1,800 Tele Danmark A/S,
Class B............................................... 202
--------
Finland (0.1%):
Commercial Services (0.1%):
9,600 TT Tieto Oy-B Shares................................... 349
--------
France (1.3%):
Broadcasting & Publishing
(0.1%):
2,110 Television Francaise................................... 370
--------
Engineering (0.3%):
3,840 Altran Technologies SA................................. 895
--------
Industrial Goods & Services
(0.1%):
800 L'Air Liquid........................................... 136
--------
Insurance (0.2%):
4,000 AXA.................................................... 518
--------
Machinery & Equipment (0.2%):
6,200 Sidel SA............................................... 471
--------
Medical Equipment & Supplies
(0.1%):
825 Essilor
International......................................... 322
--------
Retail Stores/Catalog (0.2%):
3,200 Pinault-Printemps-
Redoute SA............................................ 548
--------
Utilities - Electrical & Gas
(0.1%):
2,000 Total SA, B Shares..................................... 249
--------
3,509
--------
Germany (0.9%):
Banking (0.2%):
6,100 BHF Bank AG............................................ 242
6,100 Deutsche Pfandbrief-Und
Hypothekenbank AG..................................... 505
--------
747
--------
Diversified Operations (0.2%):
8,000 Siemens AG(b).......................................... 558
--------
Insurance (0.2%):
1,100 Allianz AG............................................. 397
--------
Telecommunications (0.3%):
6,100 Mannesmann AG.......................................... 662
--------
2,364
--------
Greece (0.0%):
Telecommunications - Services &
Equipment (0.0%):
1 Hellenic
Telecommunication
Organization(b)....................................... --(d)
--------
</TABLE>
Continued
82
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Hong Kong (0.1%):
Electronic Components/Instruments (0.1%):
81,000 Johnson Electric Holdings Ltd. ............................ $ 181
-------
Utilities - Electrical & Gas (0.0%):
96,976 Hong Kong & China Gas Co. Ltd.............................. 129
-------
310
-------
Ireland (0.1%):
Banking (0.1%):
12,000 Bank of Ireland............................................ 249
-------
Israel (0.0%):
Computer Software (0.0%):
4,900 MEMCO Software(b)(c)....................................... 65
-------
Italy (0.2%):
Jewelry (0.1%):
60,000 Bulgari SpA(b)............................................. 329
-------
Telecommunications (0.1%):
45,000 Telecom Italia Mobile SpA.................................. 296
-------
625
-------
Japan (1.4%):
Computer Hardware (0.1%):
4,000 TDK Corp. ................................................. 332
-------
Consumer Electronics (0.1%):
2,500 Sony Corporation........................................... 183
-------
Electronic Components/Instruments (0.1%):
9,000 Fanuc Co. Ltd.............................................. 286
-------
Industrial Goods & Services (0.1%):
13,000 Bridgestone Corportation................................... 305
-------
Insurance (0.1%):
19,000 Tokio Marine Fire.......................................... 215
-------
Manufacturing - Consumer Goods (0.3%):
20,000 Canon(b)................................................... 443
8,000 Fuji Photo Film Ltd. ...................................... 299
-------
742
-------
Pharmaceuticals (0.5%):
14,000 Sankyo Co. Ltd.(b)......................................... 319
23,000 Takeda Chemical Industries................................. 776
-------
1,095
-------
Retail - Food & Drug (0.1%):
10,000 Matsumotokiyoshi........................................... 386
-------
3,544
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Mexico (0.0%):
Beverages & Tobacco (0.0%):
40 Fomento Economico ADR...................................... $ 1
-------
Netherlands (0.7%):
Broadcasting & Publishing (0.2%):
4,400 Wolters Kluwer NV.......................................... 841
-------
Commercial Services (0.2%):
9,144 Getronics NV............................................... 401
-------
Insurance (0.1%):
2,700 ING Groep NV............................................... 155
-------
Office Equipment & Services (0.2%):
15,210 Oce NV..................................................... 536
-------
1,933
-------
Portugal (0.2%):
Telecommunications (0.2%):
11,000 Portugal Telecom, SA ADR................................... 485
-------
Spain (0.5%):
Apparel/Shoes (0.1%):
9,000 Cortefiel SA(b)............................................ 235
-------
Beverages & Tobacco (0.1%):
15,000 Tabacalera SA(b)........................................... 372
-------
Telecommunications - Services & Equipment (0.1%):
7,300 Telefonica SA.............................................. 344
-------
Utilities - Eletrical & Gas (0.2%):
14,500 Endesa SA.................................................. 379
-------
1,330
-------
Sweden (0.4%):
Metals (0.1%):
3,300 Assa Abloy AB-Series B..................................... 132
-------
Telecommunications (0.3%):
8,200 Nokia Corp., ADR........................................... 804
-------
936
-------
Switzerland (1.0%):
Food Products & Services (0.3%):
345 Nestle SA(b)............................................... 719
-------
Insurance (0.2%):
250 Swiss Reinsurance Co. ..................................... 634
-------
Pharmaceuticals (0.5%):
300 Novartis AG................................................ 565
50 Roche Holdings AG.......................................... 589
-------
1,154
-------
2,507
-------
</TABLE>
Continued
83
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
United Kingdom (1.4%):
Aerospace/Defense (0.3%):
55,666 British Aerospace PLC...................................... $ 483
21,310 Cobham PLC(b).............................................. 299
-------
782
-------
Banking (0.2%):
21,000 Abbey National PLC......................................... 421
-------
Commercial Services (0.2%):
76,285 Logica PLC(b).............................................. 554
-------
Engineering (0.1%):
96,000 Siebe PLC.................................................. 345
-------
Oil & Gas Exploration, Production & Services (0.2%):
28,000 British Petroleum Co. PLC.................................. 437
-------
Pharmaceuticals (0.2%):
19,000 Glaxo Wellcome PLC......................................... 603
-------
Utilities - Electrical & Gas (0.32%):
50,000 National Grid Group PLC.................................... 396
-------
3,538
-------
Total Foreign Common Stocks 23,736
-------
Preferred Stocks (0.2%):
Germany (0.2%):
Computer Software (0.2%):
1,020 SAP AG..................................................... 533
-------
Total Preferred Stocks 533
-------
Government Obligations (26.1%):
Federal National Mortgage Association (8.5%):
$ 1,220 4.30%, 12/10/98............................................ 1,219
5,182 7.00%, 9/1/27.............................................. 5,294
2,255 6.50%, 11/1/27............................................. 2,272
3,778 6.00%, 7/1/28.............................................. 3,732
2,491 6.00%, 8/1/28.............................................. 2,460
3,407 6.50%, 8/1/28.............................................. 3,432
2,493 6.50%, 8/1/28.............................................. 2,512
1,220 6.5%, 11/15/28............................................. 1,228
-------
22,149
-------
Government National Mortgage Association (3.0%):
747 6.50%, 9/15/23............................................. 755
813 6.50%, 12/15/23............................................ 822
6,139 7.50%, 8/15/25............................................. 6,352
-------
7,929
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Government Obligations, continued:
U.S. Treasury Bonds (5.0%):
$ 11,480 6.25%, 8/15/23(c)......................................... $12,937
175 6.38%, 8/15/27(c)......................................... 203
-------
13,140
-------
U.S. Treasury Notes (9.6%):
7,795 5.75%, 11/15/00(c)........................................ 7,962
7,530 5.75%, 8/15/03(c)......................................... 7,873
8,045 6.50%, 10/15/06(c)........................................ 8,916
-------
24,751
-------
Total Government Obligations 67,969
-------
Mortgaged Backed Securities (1.9%):
1,750 PNC, Series 98-7, Class A5, 6.75%, 9/25/28................ 1,747
3,170 Sequoia Trust, Series 3A, 6.35%, 9/25/25.................. 3,172
-------
Total Mortgage Backed Securities 4,919
-------
Corporate Bonds (12.7%):
Consumer Goods & Services (0.6%):
1,650 American Greetings, 6.10%, 8/1/28......................... 1,685
-------
Financial Services (4.6%):
800 Associates Corp., 6.25%, 11/1/08.......................... 825
2,740 Countrywide Home, 6.84%, 10/22/04......................... 2,825
550 ERAC USA Finance Co., 6.35%, 1/15/01...................... 559
1,200 Ford Motor Credit Co. (c), 6.00%, 1/14/03................. 1,230
650 Franchise Financial Corporation of America, 8.25%......... 663
1,660 Prudential Securities Secured Financing Corp., 6.35%,
9/15/07.................................................. 1,685
1,243 Residential Accredit Loans, Inc., Series 1998-Qs14, Class
A2, 6.50%, 10/25/28...................................... 1,237
2,500 Salomon Smith Barney, 6.25%, 1/15/05...................... 2,515
130 Sasco 1996, Series 6 C, 7.50%, 8/25/26.................... 131
-------
11,670
-------
Food & Household Products (1.0%):
2,750 Nabisco, Inc., 6.38%, 2/1/35.............................. 2,709
-------
Foreign Governments (1.1%):
2,550 Providence of Saskatchewan, 8.00%, 7/15/04................ 2,875
-------
Industrial Goods & Services (3.7%):
2,890 Armstrong World, 6.50%, 8/15/05........................... 2,995
1,100 Azko Noble Corporate Bond, 6.00%, 11/15/03................ 1,111
3,700 Computer Assoc. International, 6.25%, 4/15/03............. 3,691
710 Raytheon Co., 5.70%, 11/01/03............................. 711
1,000 Williams Cos., Inc., 6.20%, 8/1/02........................ 1,016
-------
9,524
-------
</TABLE>
Continued
84
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Balanced Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Corporate Bonds, continued:
Resorts & Entertainment (0.8%):
$1,850 Time Warner Entertainment, 9.63%, 5/1/02................... $ 2,091
-------
Telecommunications - Services & Equipment (0.9%):
910 Sprint Capital Corporate Bond, 5.70%, 11/15/03............. 912
1,410 Sprint Capital Corporate Bond, 6.88%, 11/15/28............. 1,486
-------
2,398
-------
Total Corporate Bonds 32,952
-------
Convertible Bonds (0.5%):
Financial Services (0.5%):
1,350 EOP Operating Limited Partnership, 6.63%, 2/15/05.......... 1,333
-------
Total Convertible Bonds 1,333
-------
Asset Backed Securities (3.6%):
1,797 Banc One Auto Grantor Trust, 6.27%, 11/20/03............... 1,821
2,450 Discover Card Master Trust, 6.05%, 8/18/08................. 2,498
3,920 General Electric Corp., Series A3, 6.18%, 6/25/15.......... 3,925
46 Lehman Federal Housing Administration, 6.78%, 3/25/08...... 47
1,050 Saxon Series 98-4, Class A4, 6.40%, 5/25/26................ 1,050
-------
Total Asset Backed Securities 9,341
-------
Cash Equivalents (2.8%):
7,306 Goldman Sachs Financial Square Premium..................... 7,306
-------
Total Cash Equivalents 7,306
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Held as Collateral (23.1%):
Certificate of Deposit (3.8%):
$10,000 Morgan Guaranty Trust Co. of New York, 5.14%, 1/28/98... $ 10,000
--------
Commercial Paper (4.6%):
12,000 Kaiser Foundation Hospital, 5.65%, 12/1/98.............. 11,998
--------
Floating Rate Note (3.8%):
10,000 Merrill Lynch, 5.02%, 10/4/99........................... 10,000
--------
Repurchase Agreements (10.9%):
28,102 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ 28,102
--------
Total Short Term Securities Held As Collateral 60,100
--------
Total Investments (Cost $284,944)(a)--123.4% 321,344
Liabilities in excess of other assets (23.4)% (60,962)
--------
Total Net Assets--100.0% $260,382
========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $41,453
Unrealized depreciation...................................... (5,053)
-------
Net unrealized appreciation.................................. $36,400
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at November 30, 1998.
(d) Market value is less than $1,000.
See Notes to Financial Statements.
85
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks (55.9%):
Advertising (0.2%):
1,600 HA-LO Industries, Inc.(b)................................... $ 51
-------
Appliances & Household Products (0.0%):
900 Windmere Durable Holdings................................... 6
-------
Banking (1.3%):
1,400 First Tennessee National Corp.(c)........................... 47
600 Marshall & Ilsley Corp. .................................... 31
1,150 Old Kent Financial Corp. ................................... 49
1,200 Southtrust Corp. ........................................... 44
2,200 State Street Corp.(c)....................................... 151
400 Union Planters Corp. ....................................... 19
900 Zions Bancorporation........................................ 45
-------
386
-------
Broadcasting & Publishing (0.6%):
1,900 CanWest Global Communications Corp. ........................ 24
1,200 Citadel Communications(b)................................... 29
1,000 Clear Channel Communications, Inc. ......................... 47
1,300 Consolidated Graphics, Inc.(b).............................. 74
-------
174
-------
Broadcasting/Cable (0.2%):
550 Cablevision Systems(b)...................................... 23
1,000 Comcast Corporation......................................... 48
-------
71
-------
Business Services (2.9%):
2,200 Automatic Data Processing, Inc. ............................ 170
1,100 Boron Lepore & Associates(b)(c)............................. 34
1,900 Ceridian Corp.(c)........................................... 124
1,000 Cintas Corp. ............................................... 55
1,300 FYI, Inc. .................................................. 41
1,800 Hagler Bailly, Inc.(b)(c)................................... 33
850 International Telecommunications Data Systems(b)............ 21
350 Lason, Inc.(b)(c)........................................... 21
800 Metzler Group, Inc.(b)...................................... 33
2,100 NCO Group, Inc.(b).......................................... 77
1,200 Nova Corp.(b)(c)............................................ 38
1,025 Paychex, Inc. .............................................. 51
1,000 Pittston Brink's Group...................................... 30
1,100 QRS Corp. .................................................. 46
500 Robert Half International, Inc. ............................ 24
800 SM&A Corp.(b)............................................... 10
1,600 SunGard Data Systems, Inc.(b)............................... 51
-------
859
-------
Chemicals (0.5%):
3,000 Monsanto Co. ............................................... 136
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Commercial Services (0.3%):
600 Central Parking Corp. ...................................... $ 18
2,000 Iron Mountain, Inc.(b)...................................... 58
-------
76
-------
Computer Hardware (0.8%):
900 Apex PC Solutions, Inc.(b).................................. 23
600 Apple Computer(b)(c)........................................ 19
600 IBM......................................................... 99
1,675 Insight Enterprises(b)...................................... 71
1,500 Mercury Computer Systems, Inc.(b)........................... 33
-------
245
-------
Computer Services (0.0%):
300 Photronics, Inc.(b)(c)...................................... 6
-------
Computer Software & Peripherals (3.6%):
1,450 Aspen Technologies, Inc.(b)(c).............................. 20
2,100 Axnet Technologies(b)....................................... 55
3,450 BMC Software(b)(c).......................................... 176
400 Citrix Systems, Inc.(b)..................................... 33
1,600 Datastream Systems, Inc.(b)................................. 16
5,500 HBO & Company(c)............................................ 137
900 Infinium Software, Inc.(b).................................. 6
350 Lexmark International Group(b).............................. 27
3,500 Microsoft, Inc.(b).......................................... 426
650 Network Appliance, Inc.(b).................................. 49
950 New Dimension Software(c)................................... 32
1,100 Pegasystems(b)(c)........................................... 7
1,400 Quadramed Corp.(b)(c)....................................... 34
750 VERITAS Software Corp.(b)................................... 45
550 Wind River System, Inc.(b)(c)............................... 26
-------
1,089
-------
Consumer Goods & Services (2.3%):
2,000 Clorox Co. ................................................. 222
900 DVI, Inc.(b)................................................ 16
1,800 Gillette Co. ............................................... 83
3,000 Procter & Gamble Co. ....................................... 263
1,100 Unilever.................................................... 85
-------
669
-------
Correctional Facilities (0.3%):
2,800 Wackenhut Corrections Corp.(b).............................. 76
-------
Data Processing & Reproduction (0.6%):
1,900 Deltek Systems, Inc.(b)..................................... 33
950 Fiserv, Inc.(b)............................................. 42
1,350 INSpire Insurance Solutions(b).............................. 45
1,200 Sterling Commerce, Inc.(b)(c)............................... 44
-------
164
-------
</TABLE>
Continued
86
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Diversified Operations (1.7%):
5,300 Bodycote International(b)................................... $ 78
2,000 IMS Health, Inc. ........................................... 133
4,400 Tyco International Ltd. .................................... 289
-------
500
-------
Educational Services (0.3%):
975 Apollo Group, Inc.(b)(c).................................... 31
1,600 Sylvan Learning Systems, Inc.(b)............................ 47
-------
78
-------
Electrical & Electronic (2.3%):
2,700 Emerson Electric............................................ 176
3,000 General Electric Co. ....................................... 271
1,000 Jabil Circuit, Inc.(b)...................................... 58
900 SDL, Inc.(b)................................................ 20
800 Solectron Corp.(b)(c)....................................... 53
2,200 Tandy, Inc. ................................................ 99
-------
677
-------
Environmental Services (0.7%):
1,400 Allied Waste Industries(b).................................. 29
1,100 Casella Waste Systems, Inc., Series A(b).................... 34
3,400 Waste Management, Inc. ..................................... 146
-------
209
-------
Financial Services (3.0%):
1,500 American Express Co. ....................................... 150
2,200 Associates First Capital Corp. ............................. 171
3,100 Concord EFS, Inc.(b)........................................ 99
1,300 Finova Group, Inc. ......................................... 69
2,750 Franchise Mortgage Acceptance Co.(b)........................ 26
3,600 Freddie Mac................................................. 218
7,500 MBNA Corp.(c)............................................... 170
74 Waddell & Reed Financial--Class A........................... 2
318 Waddell & Reed Financial--Class B(b)(c)..................... 7
-------
912
-------
Food & Beverage (0.5%):
2,100 The Coca-Cola Co. .......................................... 147
-------
Food & Household Products (0.2%):
1,000 Albertsons, Inc.(c)......................................... 57
-------
Food Products & Services (1.3%):
1,500 Kroger Co. ................................................. 80
2,500 NBTY, Inc.(b)............................................... 15
5,500 Safeway, Inc.(b)(c)......................................... 290
-------
385
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Funeral Services (1.0%):
1,900 Equity Corp. International(b)............................... $ 49
5,700 Service Corp. International................................. 213
1,800 Stewart Enterprises(c)...................................... 40
-------
302
-------
Health Care - Services (2.3%):
1,700 ABR Information Services, Inc.(c)........................... 29
3,700 American Oncology Resources, Inc.(b)........................ 41
1,500 Carematrix Corp.(b)(c)...................................... 42
900 Concentra Managed Care, Inc.(b)............................. 11
800 HCR Manor Care, Inc.(b)..................................... 25
2,025 Health Management Assoc.(b)................................. 44
600 Healthcare Financial Partners, Inc.(b)...................... 20
8,100 HEALTHSOUTH Corp.(b)........................................ 109
2,650 Medquist, Inc.(b)........................................... 80
1,542 NCS Healthcare, Inc.(b)..................................... 31
1,100 Omnicare, Inc.(c)........................................... 31
2,000 Orthodontic Centers of America, Inc.(b)..................... 38
1,250 Parexel International Corp.(b).............................. 33
500 Quintiles Transnational Corp.(b)(c)......................... 25
2,475 Serologicals Corp.(b)....................................... 73
200 Sunrise Assisted Living, Inc.(b)............................ 9
1,000 Total Renal Care Holdings, Inc.(b)(c)....................... 27
-------
668
-------
Industrial Goods & Services (1.0%):
1,000 Dycom(b).................................................... 39
1,400 Ecolab, Inc. ............................................... 43
1,200 MSC Industrial Direct Co. .................................. 29
1,700 United Technologies Corp.(c)................................ 182
-------
293
-------
Insurance (2.7%):
3,600 Allstate Corp. ............................................. 147
2,000 American International Group, Inc.(c)....................... 188
2,700 Annuity and Life Re......................................... 69
600 Nationwide Financial Services, Inc. ........................ 29
4,200 SunAmerica, Inc. ........................................... 332
1,300 Torchmark Corp. ............................................ 49
-------
814
-------
Manufactured Housing (0.1%):
1,000 Modtech, Inc.(b)............................................ 19
-------
Manufacturing - Consumer Goods (0.5%):
1,500 Mattel(c)................................................... 52
2,250 Newell Cos., Inc. .......................................... 99
-------
151
-------
</TABLE>
Continued
87
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (1.0%):
600 Biomatrix, Inc.(b).......................................... $ 29
800 Guidant Corp. .............................................. 69
1,000 Henry Schein, Inc.(b)....................................... 36
2,000 Medtronic, Inc. ............................................ 134
1,100 Molecular Devices Corp.(b).................................. 20
700 Sabratek Corp.(b)(c)........................................ 12
-------
300
-------
Medical-Hospital Services (0.0%):
350 Safeskin Corp.(b)........................................... 7
-------
Office Equipment & Services (0.9%):
1,700 Hewlett-Packard Co.(c)...................................... 107
1,400 Xerox Corp. ................................................ 150
-------
257
-------
Oil & Gas (0.7%):
3,200 Halliburton Co. ............................................ 94
1,200 Royal Dutch Petroleum, Ny Shares............................ 56
1,200 Schlumberger Ltd. .......................................... 54
-------
204
-------
Oilfield Services & Equipment (0.1%):
1,650 Key Energy Group, Inc.(b)................................... 10
1,900 Omni Energy Services(b)..................................... 19
-------
29
-------
Pharmaceuticals (5.8%):
300 Biogen...................................................... 23
1,000 Bristol Myers Squibb Co..................................... 123
3,700 Eli Lilly & Co. ............................................ 332
1,100 Forest Laboratories(b)...................................... 51
1,600 Johnson & Johnson........................................... 130
2,300 Jones Medical Industries, Inc.(c)........................... 83
2,100 King Pharmaceuticals, Inc.(b)............................... 32
1,300 Mylan Laboratories(c)....................................... 43
2,600 Pfizer, Inc. ............................................... 290
2,000 Pharmacia & Upjohn, Inc. ................................... 104
1,700 Schering Plough Corp. ...................................... 181
4,100 Warner-Lambert Co. ......................................... 310
750 Watson Pharmaceutical, Inc.(b).............................. 40
-------
1,742
-------
Printing & Publishing (0.2%):
3,700 American Bank Note Holographics(b).......................... 50
-------
Rental Equipment Furniture (0.3%):
1,850 Rental Service Corp.(b)..................................... 39
1,700 Renter's Choice, Inc.(b).................................... 41
-------
80
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Resorts & Entertainment (1.1%):
3,200 Carnival Cruise Lines....................................... $ 110
1,800 Time Warner Inc. ........................................... 191
2,300 Vistana, Inc.(b)............................................ 32
-------
333
-------
Retail Stores (5.4%):
2,000 CompUSA, Inc.(b)............................................ 30
400 Consolidated Stores(b)...................................... 9
3,000 Costco Companies, Inc. ..................................... 188
3,600 CVS Corp. .................................................. 178
2,700 Dayton Hudson Corp.(c)...................................... 122
2,600 Family Dollar Stores........................................ 52
1,400 Fred's, Inc. ............................................... 20
6,100 Home Depot, Inc. ........................................... 302
1,400 Linens 'N Things, Inc.(b)................................... 43
3,900 Lowe's Cos.(c).............................................. 165
2,200 Office Depot, Inc.(b)(c).................................... 72
700 Ross Stores, Inc. .......................................... 25
975 The Men's Wearhouse, Inc.(b)................................ 25
1,800 Wal-Mart.................................................... 136
5,000 Walgreen Co. ............................................... 267
-------
1,634
-------
Semiconductors (1.0%):
400 ATMI, Inc.(b)............................................... 8
2,200 Intel Corp. ................................................ 237
1,100 Vitesse Semiconductor Corp.(b)(c)........................... 39
-------
284
-------
Technology (1.2%):
750 Engineering Animation, Inc.(b)(c)........................... 29
300 Gemstar International Group Limited(b)...................... 18
1,000 Macrovision Corp.(b)........................................ 36
769 Maxwell Technologies, Inc. ................................. 20
1,900 Sanmina Corp.(b)(c)......................................... 96
500 Symbol Technologies, Inc. .................................. 24
700 Symix Systems(b)............................................ 14
700 Uniphase Corp.(b)........................................... 38
1,900 Visio Corp.(b).............................................. 68
-------
343
-------
Telecommunications - Services & Equipment (5.6%):
3,650 AirTouch Communications, Inc.(b)............................ 209
1,000 Bell South.................................................. 87
950 Century Telephone Enterprise................................ 54
4,650 Cisco Systems, Inc.(b)...................................... 351
600 Comverse(b)................................................. 35
874 Genesys Telecomm Labs, Inc.(b)(c)........................... 25
700 GTE Corp. .................................................. 43
</TABLE>
Continued
88
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Telecommunications - Services & Equipment, continued:
3,400 Lucent Technologies...................................... $ 293
3,600 MCI Worldcom, Inc.(b).................................... 212
800 McLeod USA, Inc.(b)...................................... 25
1,500 Pacific Gateway Exchange, Inc.(b)(c)..................... 67
1,000 Qwest Communications International(b).................... 40
4,800 SBC Communications, Inc. ................................ 230
500 World Access, Inc.(b).................................... 10
-------
1,681
-------
Wholesale Distribution (0.3%):
6,200 Brightpoint, Inc.(b)..................................... 93
-------
Wholesale Distribution - Pharmaceuticals (1.1%):
400 Allegiance............................................... 16
4,350 Cardinal Health, Inc. ................................... 299
-------
315
-------
Total Common Stocks 16,572
-------
Foreign Common Stocks (16.8%):
Australia (0.4%):
Banking (0.2%):
4,500 National Australia Bank Ltd. ............................ 67
-------
Real Estate (0.2%):
2,600 Lend Lease Corp. Ltd.(b)................................. 64
-------
131
-------
Belgium (0.6%):
Diversified Operations (0.1%):
150 Barco N.V. .............................................. 40
-------
Retail Stores/Catalog (0.5%):
175 Colrayt SA............................................... 137
-------
177
-------
Canada (0.3%):
Aerospace/Defense (0.2%):
3,400 Bombardier, Inc. Class B................................. 44
-------
Computer Software (0.1%):
2,100 Discreet Logic, Inc.(b).................................. 33
-------
77
-------
Denmark (0.1%):
Telecommunications (0.1%):
350 Tele Danmark A/S-B....................................... 39
-------
Finland (0.6%):
Commercial Services (0.3%):
2,100 TT Tieto Oy-B Shares(b).................................. 76
-------
Telecommunications (0.3%):
1,000 Nokia Corp., ADR......................................... 98
-------
174
-------
France (2.6%):
Broadcasting & Publishing (0.3%):
530 Television Francaise..................................... 93
-------
Engineering (0.5%):
580 Altran Technologies
SA...................................................... 135
-------
Industrial Goods & Services
(0.1%):
165 L'Air Liquid............................................. 28
-------
Insurance (0.4%):
800 AXA...................................................... 104
-------
Machinery & Equipment (0.4%):
1,600 Sidel SA................................................. 122
-------
Medical Equipment & Supplies
(0.3%):
215 Essilor International.................................... 84
-------
Retail Stores/Catalog (0.4%):
825 Pinault-Printemps-Redo SA................................ 140
-------
Utilities - Eletrical & Gas
(0.2%):
400 Total SA, B Shares....................................... 50
-------
756
-------
Germany (1.6%):
Banking (0.6%):
1,200 BHF Bank AG.............................................. 48
1,500 Deutsche Pfandbrief-Und Hypothekenbank
AG...................................................... 124
-------
172
-------
Diversified Operations (0.4%):
1,550 Siemens AG............................................... 108
-------
Insurance (0.2%):
200 Allianz AG............................................... 72
-------
Telecommunications (0.4%):
1,200 Mannesmann AG............................................ 130
-------
482
-------
Greece (0.0%):
Telecommunications - Services &
Equipment (0.0%):
1 Hellenic
Telecommunication
Organization............................................ --(d)
-------
Hong Kong (0.3%):
Electrical & Electronic (0.2%):
21,000 Johnson Electric
Holdings Ltd. .......................................... 47
-------
</TABLE>
Continued
89
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Foreign Common Stocks, continued:
Hong Kong, continued:
Utilities - Eletrical & Gas (0.1%):
25,300 Hong Kong & China Gas Co. Ltd.(b)........................... $ 34
-------
81
-------
Ireland (0.2%):
Banking (0.2%):
2,500 Bank of Ireland............................................. 52
-------
Israel (0.0%):
Computer Software (0.0%):
800 MEMCO Software(b)(c)........................................ 11
-------
Italy (0.5%):
Jewelry (0.2%):
13,200 Bulgari SpA................................................. 73
-------
Telecommunications (0.3%):
12,000 Telecom Italia Mobile SpA................................... 78
-------
151
-------
Japan (2.8%):
Computer Hardware (0.3%):
1,000 TDK Corp. .................................................. 83
-------
Consumer Electronics (0.1%):
600 Sony Corp. ................................................. 44
-------
Electronic Components/Instruments (0.2%):
2,300 Fanuc Co. Ltd .............................................. 73
-------
Industrial Goods & Services (0.2%):
3,000 Bridgestone Corporation..................................... 70
-------
Insurance (0.2%):
4,000 Tokio Marine & Fire Insurance Co. Ltd. ..................... 45
-------
Manufacturing - Consumer Goods (0.6%):
5,000 Canon....................................................... 111
2,000 Fuji Photo Film Ltd. ....................................... 75
-------
186
-------
Pharmaceuticals (0.9%):
4,000 Sankyo Co. Ltd. ............................................ 91
4,000 Takeda Chemical Industries(b)............................... 136
-------
227
-------
Retail - Food and Drug (0.3%):
2,500 Matsumotokiyoshi............................................ 96
-------
824
-------
Netherlands (1.0%):
Broadcasting & Publishing (0.4%):
550 Wolters Kluwer NV........................................... 106
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Foreign Common Stocks, continued:
Netherlands, continued:
Commercial Services (0.3%):
2,109 Getronics NV................................................ $ 92
-------
Insurance (0.1%):
1 ING Groep NV................................................ 32
-------
Office Equipment & Services (0.2%):
2,000 Oce NV(b)................................................... 70
-------
300
-------
Portugal (0.2%):
Telecommunications (0.2%):
1,500 Portugal Telecom, SA ADR.................................... 66
-------
Spain (1.0%):
Apparel/Shoes (0.2%):
2,400 Cortefiel SA(b)............................................. 63
-------
Beverages & Tobacco (0.3%):
3,800 Tabacalera SA(b)............................................ 94
-------
Gas & Electric Utility (0.3%):
2,900 Endesa SA................................................... 76
-------
Telecommunications - Services & Equipment (0.2%):
1,490 Telefonica SA............................................... 70
-------
303
-------
Sweden (0.1%):
Metals (0.1%):
750 Assa Abloy AB, Series B..................................... 30
-------
Switzerland (1.6%):
Food Products & Services (0.4%):
50 Nestle SA................................................... 104
-------
Insurance (0.4%):
50 Swiss Reinsurance Co. ...................................... 127
-------
Pharmaceuticals (0.8%):
60 Novartis AG................................................. 113
10 Roche Holdings AG........................................... 118
-------
231
-------
462
-------
United Kingdom (2.9%):
Aerospace/Defense (0.6%):
10,868 British Aerospace PLC....................................... 94
5,420 Cobham PLC(b)............................................... 76
-------
170
-------
Banking (0.3%):
4,500 Abbey National PLC.......................................... 90
-------
</TABLE>
Continued
90
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
United Kingdom, continued:
Commercial Services (0.5%):
19,645 Logica PLC(b).............................................. $ 143
-------
Engineering (0.2%):
16,000 Siebe PLC.................................................. 58
-------
Food Products & Services (0.3%):
8,000 Compass Group(b)........................................... 86
-------
Health & Personal Care (0.4%):
4,000 Glaxo Holdings PLC......................................... 127
-------
Utilities - Electrical & Gas (0.6%):
6,000 British Petroleum Co. PLC.................................. 94
10,000 National Grid Group PLC.................................... 79
-------
173
-------
847
-------
Total Foreign Common Stocks 4,963
-------
Preferred Stocks (0.4%):
Germany (0.4%):
Computer Software (0.4%):
205 SAP AG..................................................... 107
-------
Total Preferred Stocks 107
-------
Government Obligations (0.4%):
Federal National Mortgage Assoc. (0.4%):
$ 130 6.50%, 11/15/28............................................ 131
-------
Total Government Obligations 131
-------
Corporate Bonds (10.0%):
Banking (0.4%):
125 PNC, Series 98-7, Class A5, 6.75%, 9/25/28................. 125
-------
Consumer Goods & Services (0.3%):
100 American Greetings, 6.10%, 8/1/28.......................... 102
-------
Electrical & Electronic (0.9%):
270 General Electric Corp., Series A3, 6.18%, 6/25/15.......... 270
-------
Financial Services (4.2%):
250 Associates Corp., 5.75%, 11/1/03........................... 254
250 Countrywide Home, 6.84%, 10/22/04.......................... 259
150 Ford Motor Credit Co., 6.00%, 1/14/03(c)................... 154
20 Franchise Financial Corporation Of America, 8.25%,......... 20
79 Residential Accredit Loans, Inc., Series 1998-Qs14, Class
A2, 6.50%, 10/25/28....................................... 78
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Corporate Bonds, continued:
Financial Services, continued:
$ 225 Salomon Smith Barney, 6.25%, 1/15/05....................... $ 226
220 Sequoia Trust, Series 3A, 6.35%, 9/25/25................... 220
-------
1,211
-------
Food & Household Products (0.8%):
250 Nabisco, Inc., 6.38%, 2/1/35............................... 246
-------
Foreign Governments (1.1%):
270 Providence of Saskatchewan, 8.00%, 7/15/04................. 304
-------
Industrial Goods & Services (0.9%):
150 Armstrong World, 6.50%, 8/15/05............................ 155
80 Lubrizol Corp, 5.88%, 12/01/08............................. 80
40 Raytheon Co., 5.70%, 11/01/03.............................. 40
-------
275
-------
Insurance (0.4%):
110 Prudential Securities Secured Financing Corp., 6.35%,
9/15/07................................................... 112
-------
Resorts & Entertainment (0.5%):
130 Time Warner Entertainment, 9.63%, 5/1/02................... 147
-------
Telecommunications - Services & Equipment (0.5%):
60 Sprint Capital, 5.70%, 11/15/03............................ 60
90 Sprint Capital, 6.88%, 11/15/28............................ 95
-------
155
-------
Total Corporate Bonds 2,947
-------
Asset Backed Securities (1.4%):
103 Banc One Auto Grantor Trust, 6.27%, 11/20/03............... 104
250 Discover Card Master Trust, 6.05%, 8/18/08................. 255
60 Saxon, Series 98-4, Class A4, 6.40%, 5/25/26............... 60
-------
Total Asset Backed Securities 419
-------
Government Agencies (6.2%):
Federal National Mortgage Assoc. (4.9%):
130 4.30%, 12/10/98............................................ 130
199 6.00%, 8/1/28.............................................. 197
1,119 6.50%, 8/1/28.............................................. 1,127
-------
1,454
-------
Government National Mortgage Corp. (1.3%):
359 7.50%, 9/15/27............................................. 371
-------
Total Government Agencies 1,825
-------
</TABLE>
Continued
91
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Aggressive Allocation Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
U.S. Treasury Notes (5.0%):
$900 5.75%, 11/15/00(c).......................................... $ 919
495 6.50%, 10/15/06(c).......................................... 549
-------
Total U.S. Treasury Notes 1,468
-------
U.S. Treasury Bonds (2.8%):
740 6.25%, 8/15/23(c)........................................... 834
-------
Total U.S. Treasury Bonds 834
-------
Cash Equivalents (1.7%):
496 Goldman Sachs Financial Square Premium...................... 496
-------
Total Cash Equivalents 496
-------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Short Term Securities Held as Collateral (16.9%):
Repurchase Agreements (16.9%):
$ 5,018 Lehman Brothers Triparty Agreement,
5.45%, 12/1/98, (See Significant Accounting Policies,
Lending Portfolio Securities in the Notes to Financial
Statements for collateral description)................... $ 5,018
-------
Total Short Term Securities Held As Collateral 5,018
-------
Total Investments (Cost $30,196)(a)--117.5% 34,780
Liabilities in excess of other assets (17.5)% (5,177)
-------
Total Net Assets--100.0% $29,603
=======
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation.............................. $5,314
Unrealized depreciation.............................. (730)
------
Net unrealized appreciation.......................... $4,584
======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at November 30, 1998.
(d) Market value is less than $1,000.
See notes to financial statements.
92
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Equity Income Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (91.8%)
Apparel (2.8%):
362,900 Intimate Brands, Inc.(b).................................. $ 10,456
--------
Banking (11.0%):
108,800 Bank One Corp.(b)......................................... 5,583
52,279 BankAmerica Corp. ........................................ 3,408
266,600 First Tennessee National Corp.(b)......................... 8,931
103,182 First Union Corp. ........................................ 6,268
97,000 Fleet Financial Group, Inc. .............................. 4,044
50,700 J.P. Morgan & Co. ........................................ 5,419
142,200 PNC Financial Corp.(b).................................... 7,332
--------
40,985
--------
Building Products (2.8%):
365,200 Masco Corp. .............................................. 10,545
--------
Consumer Goods & Services (6.4%):
455,000 Flowers Industries, Inc.(b)............................... 10,379
36,800 Kimberly-Clark Corp. ..................................... 1,937
71,800 Maytag Corp. ............................................. 3,886
222,300 Ralston Purina Group...................................... 7,739
--------
23,941
--------
Electrical & Electronic (3.6%):
205,800 Emerson Electric Co.(b)................................... 13,377
--------
Financial Services (2.3%):
118,500 Fannie Mae................................................ 8,621
--------
Industrial Goods & Services (11.0%):
96,000 Aluminum Co. of America(b)................................ 7,116
42,000 Dow Chemical Co. ......................................... 4,090
60,300 E. I. Du Pont de Nemours.................................. 3,543
332,100 RPM, Inc. ................................................ 5,438
222,000 Snap-On, Inc. ............................................ 7,548
106,100 United Technologies Corp.(b).............................. 11,372
74,500 USX-United States Steel Group, Inc. ...................... 1,821
--------
40,928
--------
Insurance (3.3%):
102,466 Allstate Corp. ........................................... 4,176
53,500 Cigna Corp. .............................................. 4,163
68,900 Marsh & Mclennan(b)....................................... 4,009
--------
12,348
--------
Office Equipment & Services (5.6%):
207,400 Pitney Bowes, Inc. ....................................... 11,614
85,050 Xerox Corp.(b)............................................ 9,143
--------
20,757
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oil & Gas (13.3%):
111,400 Atlantic Richfield Co. ................................... $ 7,408
96,600 Chevron Corp. ............................................ 8,078
91,500 Exxon Corp. .............................................. 6,868
105,700 Mobil Corp. .............................................. 9,110
142,500 Royal Dutch Petroleum Co. ................................ 6,698
96,500 Texaco, Inc. ............................................. 5,555
213,600 Ultramar Diamond Shamrock Corp. .......................... 5,500
--------
49,217
--------
Pharmaceuticals (6.0%):
190,000 American Home Products Corp. ............................. 10,118
98,420 Bristol-Myers Squibb Co. ................................. 12,062
--------
22,180
--------
Real Estate Investment Trust (2.1%):
78,000 Arden Realty, Inc. ....................................... 1,794
189,700 Duke Realty Investments, Inc. ............................ 4,304
54,600 Mack Cali Realty Corp. ................................... 1,621
--------
7,719
--------
Retail Stores (5.3%):
93,800 J.C. Penney & Co., Inc. .................................. 5,159
105,700 May Department Stores Co. ................................ 6,375
168,150 Sears Roebuck & Co. ...................................... 7,977
--------
19,511
--------
Telecommunications - Services & Equipment (4.8%):
147,700 AT&T Corp.(b)............................................. 9,203
285,500 Frontier Corp.(b)......................................... 8,601
--------
17,804
--------
Utilities - Electric (5.8%):
114,600 Duke Power Co. ........................................... 7,170
141,700 Florida Power & Light, Inc.(b)............................ 8,679
127,000 General Public Utility Corp. ............................. 5,564
--------
21,413
--------
Utilities - Gas (3.8%):
124,300 Consolidated Natural Gas Co. ............................. 6,751
136,500 Enron Corp. .............................................. 7,175
--------
13,926
--------
Utilities - Water (1.9%):
223,400 American Water Works, Inc.(b)............................. 6,911
--------
Total Common Stocks 340,639
--------
</TABLE>
Continued
93
<PAGE>
- --------------------------------------------------------------------------------
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
Equity Income Fund
(Amounts in Thousands, except Shares) (Unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Preferred Stocks (3.6%):
Insurance (1.0%):
41,000 American General Delaware, L.L.C. ........................ $ 3,690
--------
Technology (2.6%):
73,100 Cisco Systems............................................. 9,567
--------
Total Preferred Stocks 13,257
--------
Convertible Bonds (1.3%):
Industrial Goods & Services (1.3%):
$ 3,965 Magna International, 5.00%, 10/15/02...................... 4,837
--------
Total Convertible Bonds 4,837
--------
Cash Equivalents (3.0%):
11,081 Goldman Sachs Financial Square Premium.................... 11,081
--------
Total Cash Equivalents 11,081
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Held as Collateral (20.0%):
Floating Rate Note (12.8%):
$ 5,000 Household CCMT ABT 96 Series A4, 5.28%, 1/15/99........... $ 5,000
15,000 Merrill Lynch, 5.01%, 9/29/99............................. 15,000
10,000 Salomon Smith Barney Holding Co., 5.00%, 10/28/99......... 10,000
10,000 Sigma Finance Inc., 4.91%, 9/15/99........................ 10,000
7,500 Strategic Money Market Trust Notes, 5.28%, 3/5/99......... 7,500
--------
47,500
--------
Repurchase Agreements (7.2%):
26,895 Lehman Brothers Triparty Agreement, 5.45%, 12/1/98, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description).................................. 26,895
--------
Total Short Term Securities Held as Collateral 74,395
--------
Total Investments (Cost $350,736)(a)--119.7)% 444,209
Liabilities in excess of other assets (19.7)% (72,976)
--------
Total Net Assets--100.0% $371,233
========
</TABLE>
- -------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................. $98,102
Unrealized depreciation............................. (4,629)
-------
Net unrealized appreciation......................... $93,473
=======
</TABLE>
(b) All or a portion of this security has been loaned at November 30, 1998.
See notes to financial statements.
94
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
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 recently completed its merger with National City
Corporation ("NCC"), the parent corporation of National City Bank. National
City Investment Management Company ("IMC") formerly First of America
Investment Corporation, serves as the 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 To seek current income with liquidity and
Fund....................... 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 convertible into common stock 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
companies with large market capitalization.
International Discovery To seek long-term growth of capital.
Fund.......................
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
remaining maturities of six years or less.
Intermediate Government To seek current income with preservation of
Obligations Fund........... capital by investing in U.S. Government
securities with remaining maturities of twelve
years or less.
U.S. Government Income To provide shareholders with a high level of
Fund....................... 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
95
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Fund Objective
---- ---------
<S> <C>
Municipal Bond Fund........ To seek current interest income which is exempt
from federal income taxes and preservation of
capital.
Michigan Municipal Bond To seek income which is exempt from federal
Fund....................... income tax and Michigan state income and
intangibles tax when received by certain
Shareholders, and to seek preservation of
capital.
Conservative Allocation To seek current income and conservation of
Fund....................... 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; growth of capital is a
secondary objective.
</TABLE>
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their 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 asset value 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
96
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
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.
Forward Currency Contracts:
The Funds may enter into a forward currency contract ("forward") which is
an agreement between two parties to buy and sell a currency at a set price
on a future date. The market value of the forward fluctuates with changes
in currency exchange rates. The forward is marked-to-market daily and the
change in market value is recorded by a Fund as unrealized appreciation or
depreciation. When the forward is closed the Fund records a realized gain
or loss equal to the difference between the value at the time it was opened
and the value at the time it was closed. A Fund could be exposed to risk if
a counterparty is unable to meet the terms of a forward or if the value of
the currency changes unfavorably.
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 November 30, 1998, are
recorded for financial reporting purposes as unrealized gains and losses by
the Funds. The following forwards were open at November 30, 1998.
Continued
97
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<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
British Pounds........ 10,763 $ 17,877 $ (111) 12/1/98
Swedish Krona......... 14,085,554 1,720,478 (15,799) 12/1/98
--------
Net payable for for-
ward currency con-
tracts.............. $(15,910)
========
Balanced Allocation Fund
Short Contracts
British Pounds........ 709 $ 1,177 $ (7) 12/1/98
Swedish Krona......... 894,499 109,258 (1,003) 12/1/98
--------
Net payable for for-
ward currency con-
tracts.............. $ (1,010)
========
Aggressive Allocation
Fund
Short Contracts
British Pounds........ 140 $ 233 $ (1) 12/1/98
Swedish Krona......... 149,083 18,210 (167) 12/1/98
--------
Net payable for for-
ward currency con-
tracts.............. $ (168)
========
</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 IMC to
be of good standing and creditworthy under guidelines established by the
Board of Trustees and when, in the judgment of IMC, 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 November 30, 1998, the following Funds had securities
with the following market values on loan (amounts in thousands):
Continued
98
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Market Market Value
Value of of Loaned
Collateral Securities
---------- ------------
<S> <C> <C>
Small Capitalization Fund............................ $107,297 $102,240
Mid Capitalization Fund.............................. 136,213 128,186
Large Capitalization Fund............................ 71,717 67,918
Limited Maturity Bond Fund........................... 36,903 35,837
Intermediate Government Obligations Fund............. 49,324 48,165
U.S. Government Income Fund.......................... 49,743 48,448
Bond Fund............................................ 109,443 107,591
Conservative Allocation Fund......................... 4,636 4,528
Balanced Allocation Fund............................. 60,100 57,993
Aggressive Allocation Fund........................... 5,018 4,841
Equity Income Fund................................... 74,395 69,347
</TABLE>
The loaned securities were fully collateralized by cash, U.S. Government
securities, short-term corporate notes and repurchase agreements as of
November 30, 1998.
As disclosed in the schedules of portfolio investments the Small
Capitalization, Mid Capitalization, Large Capitalization, Limited Maturity
Bond, U.S. Government Income, Bond, Conservative Allocation, Aggressive
Allocation, Balanced Allocation and Equity Income Funds collectively
invested cash collateral in a Paine Webber Repurchase Agreement with an
interest rate of 5.45% and a maturity of 12/1/98 which was collateralized
by the following securities:
<TABLE>
<CAPTION>
Principle Description Market Value
--------- ----------- ------------
<C> <S> <C> <C> <C>
$31,000 Residential Asset Securitization Trust 6.25% 11/25/28 $30,768
20,929 LB Commercial Conduit Mortgage Trust 6.40% 2/18/30 21,500
40,829 Norwest Asset Securities Corporation 6.25% 9/25/28 40,240
46,393 Norwest Asset Securities Corporation 6.25% 9/25/28 45,316
28,198 PNC Mortgage Securities Corporation 6.75% 8/25/13 28,529
14,207 PNC Mortgage Securities Corporation 9.97% 10/25/21 15,581
7,443 Residential Funding Mortgage 7.25% 9/25/27 7,471
Securities I
1,613 Ryland Acceptance Corporation Four 7.25% 12/25/16 1,655
58,575 Structured Asset Securities 7.00% 12/27/27 58,817
Corporation
</TABLE>
Financial Futures Contracts:
The Funds may invest in financial futures contracts for the purpose of
hedging their existing portfolio securities or securities the Funds intend
to purchase, against fluctuations in fair value caused by changes in
prevailing market interest rates. Upon entering into a financial futures
contract, the Fund is required to pledge to the broker an amount of cash
and/or other assets equal to a certain percentage of the contract amount
(initial margin deposit). Subsequent payments, know as "variation margin",
are made or received by the Fund each day, depending on the daily
fluctuations in the fair value of the underlying security. The Fund
recognizes a gain or loss equal to the daily variation margin. Should
market conditions move unexpectedly, the Fund may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates
and the underlying hedged assets.
Continued
99
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
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, if any,
are declared and paid monthly for the variable net asset value funds.
Distributable net realized capital gains, if any, are declared and
distributed 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.
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 of shares 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.
Continued
100
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Fund November 30, 1998
(Unaudited)
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
six months ended November 30, 1998 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
--------- --------
<S> <C> <C>
Small Capitalization Fund................................. $167,304 $354,868
Mid Capitalization Fund................................... 261,453 353,143
Large Capitalization Fund................................. 42,176 53,797
International Discovery Fund.............................. 142,078 186,575
Limited Maturity Bond Fund................................ 132,641 146,326
Intermediate Government Obligations Fund.................. 57,811 69,823
U.S. Government Income Fund............................... 12,392 32,187
Bond Fund................................................. 842,847 860,527
Municipal Bond Fund....................................... 5,095 17,029
Michigan Municipal Bond Fund.............................. 8,085 23,862
Conservative Allocation Fund.............................. 18,800 19,203
Balanced Allocation Fund.................................. 223,546 249,683
Aggressive Allocation Fund................................ 24,393 27,219
Equity Income Fund........................................ 120,544 162,101
</TABLE>
4. Capital Share Transactions:
The Group has issued three classes of Fund shares in the Prime Obligations
Fund, the Small Capitalization Fund, the Mid Capitalization Fund, the Large
Capitalization Fund, the International Discovery Fund, the Limited Maturity
Bond Fund, the Intermediate Government Obligations Fund, the Municipal Bond
Fund, the Michigan Municipal Bond 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 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; and 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 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 and Investor B Shares, and
Investor B shares, respectively, voting rights on matters affecting a single
class of shares and the exchange privileges of each class of shares.
The Group liquidated its Investor C Shares on August 28, 1998. Due to the
liquidation, Investor C shareholders were offered the opportunity to
liquidate their Investor C Shares or exchange them, on a tax-free basis, for
Investor A Shares.
Continued
101
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government Tax-Free
Obligations Fund(a) Obligations Fund Fund Treasury Fund
----------------------- ------------------- ------------------- -----------------------
Amount Shares Amount Shares Amount Shares Amount Shares
----------- ---------- --------- -------- --------- -------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
November 30, 1998:
Investor A Shares:
Shares issued.......... $ 459,534 459,534 $ 295,175 295,175 $ 85,968 85,968 $ 808,816 808,816
Dividends reinvested... 3,315 3,315 534 534 443 443 201 201
Shares redeemed........ (664,114) (664,114) (463,977) (463,961) (139,900) (139,900) (1,041,070) (1,041,070)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net (decrease)......... $ (201,265) (201,265) $(168,268) (168,252) $ (53,489) (53,489) $ (232,053) (232,053)
=========== ========== ========= ======== ========= ======== =========== ==========
Investor B Shares:
Shares issued.......... $ 702 702 $ -- -- $ -- -- $ -- --
Dividends reinvested... 8 8 -- -- -- -- -- --
Shares redeemed........ (545) (545) -- -- -- -- -- --
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase........... $ 165 165 $ -- -- $ -- -- $ -- --
=========== ========== ========= ======== ========= ======== =========== ==========
Institutional Shares:
Shares issued.......... $ 438,589 438,590 $ 134,167 134,167 $ 66,935 66,934 $ 513,559 513,560
Dividends reinvested... 49 49 23 23 -- -- -- --
Shares redeemed........ (403,908) (403,909) (135,232) (135,249) (59,047) (59,046) (547,658) (547,658)
----------- ---------- --------- -------- --------- -------- ----------- ----------
Net increase (de-
crease)............... $ 34,730 34,730 $ (1,042) (1,059) $ 7,888 7,888 $ (34,099) (34,098)
=========== ========== ========= ======== ========= ======== =========== ==========
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
=========== ========== ========= ======== ========= ======== =========== ==========
</TABLE>
- -------
(a) Fund commenced offering of Investor B shares on September 26, 1997.
Continued
102
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
------------------ ------------------ ---------------- ----------------
Amount Shares Amount Shares Amount Shares Amount Shares
--------- ------- --------- ------- -------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
November 30, 1998:
Investor A Shares:
Shares issued.......... $ 330,998 14,203 $ 109,113 7,354 $ 4,422 266 $ 6,490 442
Dividends reinvested... -- -- -- -- -- -- -- --
Shares redeemed........ (372,016) (15,871) (129,357) (8,729) (5,560) (334) (13,761) (909)
--------- ------- --------- ------- -------- ------ -------- ------
Net (decrease)......... $ (41,018) (1,668) $ (20,244) (1,375) $ (1,138) (68) $ (7,271) (467)
========= ======= ========= ======= ======== ====== ======== ======
Investor B Shares:
Shares issued.......... $ 929 42 $ 756 56 $ 2,107 129 $ 255 17
Dividends reinvested... -- -- -- -- -- -- -- --
Shares redeemed........ (7,252) (329) (3,335) (254) (1,002) (62) (1,959) (137)
--------- ------- --------- ------- -------- ------ -------- ------
Net increase (de-
crease)............... $ (6,323) (287) $ (2,579) (198) $ 1,105 67 $ (1,704) (120)
========= ======= ========= ======= ======== ====== ======== ======
Investor C Shares*:
Shares issued.......... $ 365 14 $ 180 12 $ 100 6 $ 81 5
Dividends reinvested... -- -- -- -- -- -- -- --
Shares redeemed........ (12,866) (602) (2,182) (168) (368) (23) (964) (68)
--------- ------- --------- ------- -------- ------ -------- ------
Net (decrease)......... $ (12,501) (588) $ (2,002) (156) $ (268) (17) $ (883) (63)
========= ======= ========= ======= ======== ====== ======== ======
Institutional Shares:
Shares issued.......... $ 29,500 1,263 $ 23,025 1,611 $ 29,286 1,768 $ 9,951 626
Dividends reinvested... -- -- -- -- -- -- 37 2
Shares redeemed........ (143,690) (6,021) (73,770) (5,231) (36,770) (2,172) (48,015) (3,196)
--------- ------- --------- ------- -------- ------ -------- ------
Net (decrease)......... $(114,190) (4,758) $ (50,745) (3,620) $ (7,484) (404) $(38,027) (2,568)
========= ======= ========= ======= ======== ====== ======== ======
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)
========= ======= ========= ======= ======== ====== ======== ======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
103
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
------------------ ------------------ ------------------ -----------------
Amount Shares Amount Shares Amount Shares Amount Shares
--------- ------- --------- ------- --------- ------- --------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 749,582 25,792 $ 188,598 11,587 $ 11,465 899 $ 63,853 4,588
Dividends reinvested... 23,998 841 22,250 1,428 20 2 -- --
Shares redeemed........ (748,306) (25,258) (177,354) (11,083) (2,540) (199) (61,621) (4,425)
--------- ------- --------- ------- --------- ------- --------- ------
Net increase........... $ 25,274 1,375 $ 33,494 1,932 $ 8,945 702 $ 2,232 163
========= ======= ========= ======= ========= ======= ========= ======
Investor B Shares:
Shares issued.......... $ 22,151 806 7,531 443 $ 3,029 241 $ 3,979 282
Dividends reinvested... 5,725 205 5,491 365 11 1 -- --
Shares redeemed........ (4,442) (170) (2,176) (135) (341) (28) (1,688) (118)
--------- ------- --------- ------- --------- ------- --------- ------
Net increase........... $ 23,434 841 $ 10,846 673 $ 2,699 214 $ 2,291 164
========= ======= ========= ======= ========= ======= ========= ======
Investor C Shares:
Shares issued.......... $ 9,826 356 1,303 79 $ 43 4 $ 532 36
Dividends reinvested... 1,584 56 458 30 -- -- -- --
Shares redeemed........ (759) (29) (456) (29) (10) (1) (241) (16)
--------- ------- --------- ------- --------- ------- --------- ------
Net increase........... $ 10,651 383 $ 1,305 80 $ 33 3 $ 291 20
========= ======= ========= ======= ========= ======= ========= ======
Institutional Shares:
Shares issued.......... $ 270,110 9,653 $ 146,813 8,771 $ 137,399 11,403 $ 119,834 8,149
Dividends reinvested... 54,110 1,873 112,225 7,139 2,431 198 62 4
Shares redeemed........ (156,401) (5,260) (231,028) (12,739) (162,472) (12,606) (116,808) (7,985)
--------- ------- --------- ------- --------- ------- --------- ------
Net increase
(decrease)............ $ 167,819 6,266 $ 28,010 3,171 $ (22,642) (1,005) $ 3,088 168
========= ======= ========= ======= ========= ======= ========= ======
</TABLE>
Continued
104
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<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 six months ended
November 30, 1998:
Investor A Shares:
Shares issued.......... $ 8,953 938 $ 598 60 $ 4,295 458 $ 2,851 281
Dividends reinvested... 949 100 220 22 1,033 112 351 35
Shares redeemed........ (18,853) (1,973) (3,067) (308) (14,811) (1,589) (5,046) (502)
--------- ------- --------- ------- -------- ------ --------- -------
Net (decrease)......... $ (8,951) (935) $ (2,249) (226) $ (9,483) (1,019) $ (1,844) (186)
========= ======= ========= ======= ======== ====== ========= =======
Investor B Shares:
Shares issued.......... $ 83 9 $ 78 8 $ 728 78 $ 169 17
Dividends reinvested... 27 3 32 3 326 36 124 12
Shares redeemed........ (441) (46) (305) (31) (3,548) (382) (661) (66)
--------- ------- --------- ------- -------- ------ --------- -------
Net (decrease)......... $ (331) (34) $ (195) (20) $ (2,494) (268) $ (368) (37)
========= ======= ========= ======= ======== ====== ========= =======
Investor C Shares*:
Shares issued.......... $ 5 -- $ 11 1 $ 6 1 $ 62 6
Dividends reinvested... 20 2 3 -- 3 -- 7 1
Shares redeemed........ (2,235) (239) (251) (26) (376) (40) (670) (67)
--------- ------- --------- ------- -------- ------ --------- -------
Net (decrease)......... $ (2,210) (237) $ (237) (25) $ (367) (39) $ (601) (60)
========= ======= ========= ======= ======== ====== ========= =======
Institutional Shares:
Shares issued.......... $ 16,948 1,774 $ 7,247 727 $ 10,368 1,114 $ 22,644 2,235
Dividends reinvested... 1,421 149 1,166 117 457 49 9,018 894
Shares redeemed........ (26,779) (2,800) (22,483) (2,249) (21,601) (2,318) (55,443) (5,468)
--------- ------- --------- ------- -------- ------ --------- -------
Net (decrease)......... $ (8,410) (877) $ (14,070) (1,405) $(10,776) (1,155) $ (23,781) (2,339)
========= ======= ========= ======= ======== ====== ========= =======
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)
========= ======= ========= ======= ======== ====== ========= =======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
105
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Intermediate
Limited Maturity Government U.S. Government
Bond Fund Obligations Fund Income Fund Bond Fund
------------------- ------------------- ---------------- ------------------
Amount Shares Amount Shares Amount Shares Amount Shares
--------- -------- --------- -------- -------- ------ --------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 17,211 1,814 $ 1,090 113 $ 18,605 2,020 $ 4,657 488
Dividends reinvested... 903 95 759 78 2,469 269 938 98
Shares redeemed........ (5,131) (541) (6,308) (649) (14,174) (1,540) (6,371) (666)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase
(decrease)............ $ 12,983 1,368 $ (4,459) (458) $ 6,900 749 $ (776) (80)
========= ======= ========= ======= ======== ====== ========= =======
Investor B Shares:
Shares issued.......... $ 457 48 $ 238 24 $ 6,266 681 $ 1,973 205
Dividends reinvested... 68 7 79 8 867 95 221 23
Shares redeemed........ (583) (61) (195) (20) (3,041) (331) (752) (78)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase
(decrease)............ $ (58) (6) $ 122 12 $ 4,092 445 $ 1,442 150
========= ======= ========= ======= ======== ====== ========= =======
Investor C Shares:
Shares issued.......... $ 40 4 $ 119 12 $ 66 7 $ 336 35
Dividends reinvested... 1 -- 7 1 5 1 17 2
Shares redeemed........ (11) (1) (13) (1) (71) (8) (62) (6)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase........... $ 30 3 $ 113 12 $ -- -- $ 291 31
========= ======= ========= ======= ======== ====== ========= =======
Institutional Shares:
Shares issued.......... $ 49,609 5,230 $ 27,055 2,785 $ 47,928 5,204 $ 92,145 9,555
Dividends reinvested... 3,278 346 3,120 322 948 103 22,432 2,332
Shares redeemed........ (53,531) (5,641) (68,086) (7,009) (29,177) (3,165) (181,073) (18,764)
--------- ------- --------- ------- -------- ------ --------- -------
Net increase
(decrease)............ $ (644) (65) $ (37,911) (3,902) $ 19,699 2,142 $ (66,496) (6,877)
========= ======= ========= ======= ======== ====== ========= =======
</TABLE>
Continued
106
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Michigan
Municipal Municipal Conservative Balanced
Bond Fund Bond Fund Allocation Fund Allocation Fund
---------------- ---------------- ------------------ ----------------
Amount Shares Amount Shares Amount Shares Amount Shares
-------- ------ -------- ------ --------- ------- -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the six months ended
November 30, 1998:
Investor A Shares:
Shares issued.......... $ 1,548 145 $ 1,712 154 $ -- -- $ 1,598 120
Dividends reinvested... 112 11 542 49 -- -- 192 14
Shares redeemed........ (2,863) (271) (8,006) (722) -- -- (3,172) (233)
-------- ------ -------- ------ --------- ------ -------- ------
Net (decrease)......... $ (1,203) (115) $ (5,752) (519) $ -- -- $ (1,382) (99)
======== ====== ======== ====== ========= ====== ======== ======
Investor B Shares:
Shares issued.......... $ 25 2 $ -- -- $ -- -- $ 172 12
Dividends reinvested... 4 -- 44 4 -- -- 47 4
Shares redeemed........ (100) (10) (646) (58) -- -- (864) (65)
-------- ------ -------- ------ --------- ------ -------- ------
Net (decrease)......... $ (71) (8) $ (602) (54) $ -- -- $ (645) (49)
======== ====== ======== ====== ========= ====== ======== ======
Investor C Shares*:
Shares issued.......... $ -- -- $ -- -- $ -- -- $ 94 7
Dividends reinvested... -- -- -- -- -- -- 3 --
Shares redeemed........ -- -- -- -- -- -- (986) (75)
-------- ------ -------- ------ --------- ------ -------- ------
Net (decrease)......... $ -- -- $ -- -- $ -- -- $ (889) (68)
======== ====== ======== ====== ========= ====== ======== ======
Institutional Shares:
Shares issued.......... $ 4,991 472 $ 10,905 984 $ 2,019 182 $ 18,050 1,324
Dividends reinvested... 181 17 576 52 246 22 2,784 207
Shares redeemed........ (15,159) (1,432) (21,941) (1,973) (911) (82) (47,361) (3,481)
-------- ------ -------- ------ --------- ------ -------- ------
Net increase (de-
crease)............... $ (9,987) (943) $(10,460) (937) $ 1,354 122 $(26,527) (1,950)
======== ====== ======== ====== ========= ====== ======== ======
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
======== ====== ======== ====== ========= ====== ======== ======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
107
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Michigan Conservative
Municipal Municipal Allocation Balanced
Bond Fund Bond Fund Fund(a) Allocation Fund
---------------- ---------------- --------------- ----------------
Amount Shares Amount Shares Amount Shares Amount Shares
-------- ------ -------- ------ ------- ------ -------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
For the year ended June
30, 1997:
Investor A Shares:
Shares issued.......... $ 8,560 822 $ 7,107 656 $ -- -- $ 3,121 242
Dividends reinvested... 270 26 1,238 114 -- -- 2,336 187
Shares redeemed........ (7,155) (688) (7,170) (662) -- -- (3,299) (260)
-------- ------ -------- ------ ------- ----- -------- ------
Net increase........... $ 1,675 160 $ 1,175 108 $ -- -- $ 2,158 169
======== ====== ======== ====== ======= ===== ======== ======
Investor B Shares:
Shares issued.......... $ 341 33 $ 590 54 $ -- -- $ 2,041 160
Dividends reinvested... 23 2 104 10 -- -- 613 49
Shares redeemed........ (177) (17) (806) (74) -- -- (558) (44)
-------- ------ -------- ------ ------- ----- -------- ------
Net increase (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.
Continued
108
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Fund Income Fund
---------------- ----------------
Amount Shares Amount Shares
-------- ------ -------- ------
<S> <C> <C> <C> <C>
For the six months ended November 30, 1998:
Investor A Shares:
Shares issued............................. $ -- -- $ 3,634 206
Dividends reinvested...................... -- -- 648 37
Shares redeemed........................... -- -- (16,466) (918)
-------- ------ -------- ------
Net (decrease)............................ $ -- -- $(12,184) (675)
======== ====== ======== ======
Investor B Shares:
Shares issued............................. $ -- -- $ 1,152 66
Dividends reinvested...................... -- -- 105 6
Shares redeemed........................... -- -- (3,437) (192)
-------- ------ -------- ------
Net (decrease)............................ $ -- -- $ (2,180) (120)
======== ====== ======== ======
Investor C Shares*:
Shares issued............................. $ -- -- $ 175 10
Dividends reinvested...................... -- -- 2 --
Shares redeemed........................... -- -- (1,168) (68)
-------- ------ -------- ------
Net increase (decrease)................... $ -- -- $ (991) (58)
======== ====== ======== ======
Institutional Shares:
Shares issued............................. $ 1,808 159 $ 12,662 724
Dividends reinvested...................... 136 12 515 29
Shares redeemed........................... (5,247) (457) (38,720) (2,165)
-------- ------ -------- ------
Net (decrease)............................ $ (3,303) (286) $(25,543) (1,412)
======== ====== ======== ======
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 (decrease)............................ $ (9,134) (814) $(29,863) (1,456)
======== ====== ======== ======
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
109
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Fund(a) Income Fund
--------------------- -----------------
Amount Shares Amount Shares
---------- --------- --------- ------
<S> <C> <C> <C> <C>
For the year ended June 30, 1997:
Investor A Shares:
Shares issued....................... $ -- -- $ 17,476 991
Dividends reinvested................ -- -- 9,217 539
Shares redeemed..................... -- -- (19,770) (1,112)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 6,923 418
========== ======== ========= ======
Investor B Shares:
Shares issued....................... $ -- -- $ 6,794 385
Dividends reinvested................ -- -- 1,506 88
Shares redeemed..................... -- -- (1,807) (103)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 6,493 370
========== ======== ========= ======
Investor C Shares:
Shares issued....................... $ -- -- $ 608 35
Dividends reinvested................ -- -- 28 1
Shares redeemed..................... -- -- (94) (5)
---------- -------- --------- ------
Net increase........................ $ -- -- $ 542 31
========== ======== ========= ======
Institutional Shares:
Shares issued....................... $ 39,922 3,954 $ 53,563 3,180
Dividends reinvested................ 195 19 7,868 460
Shares redeemed..................... (2,857) (281) (116,931) (6,623)
---------- -------- --------- ------
Net increase (decrease)............. $ 37,260 3,692 $ (55,500) (2,983)
========== ======== ========= ======
</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
110
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
5. Related Party Transactions:
Investment advisory services are provided to the Group by IMC. Gulfstream
Global Investors, Ltd. ("Gulfstream") served as sub-investment adviser to the
Conservative Allocation Fund, the Balanced Allocation Fund, the Aggressive
Allocation Fund and the International Discovery Fund until November 30, 1998
when the agreement was terminated and IMC assumed the day-to-day management.
Under the terms of the investment advisory agreement, IMC 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
was entitled to receive fees from IMC based on a percentage of the average
daily net assets of the International Discovery Fund, and based on a
percentage of the assets of the Conservative Allocation Fund, the Balanced
Allocation Fund, and the Aggressive Allocation Fund assets invested in
foreign securities.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
an Ohio Limited Partnership and BISYS Fund Services Ohio, Inc. (BISYS Ohio)
are 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 an annual fee not to
exceed 0.20% of the average daily net assets of each Fund. Until September
18, 1998, BISYS also served as the Fund's distributor. For the period June 1,
1998 to September 18, 1998 BISYS received $142,333 in commissions from sales
of shares of the variable net asset value funds of which $36,161 was
reallowed to other brokers and dealers. BISYS received no fees for providing
distribution services to the money market funds. Effective September 19,
1998, SEI Investments Distribution Co. (SEI) became the Group's distributor.
For the period September 19, 1998 to November 30, 1998, SEI received $67,358
in commissions from sales of shares of the variable net asset value funds of
which $4,232 was reallowed to other brokers and dealers. BISYS Ohio serves
the Group as mutual fund accountant. Until September 11, 1998, BISYS Ohio
also served the Group as Transfer Agent. Effective September 12, 1998, Boston
Financial Data Services became the Transfer Agent.
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 SEI, as distributor of Investor A shares, a periodic
distribution and/or service fee, calculated at an annual rate not to exceed
0.25% of the average daily net asset value of Investor A shares of that Fund.
Pursuant to the Investor B and Investor C Plans, each Fund is authorized to
pay or reimburse SEI, 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 SEI to pay banks, including the investment adviser,
broker dealers and other institutions, or to reimburse SEI or its affiliates
for administration, distribution, and shareholder service assistance in
connection with the distribution of Fund shares.
Continued
111
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Fees may be voluntarily reduced to assist the Funds in maintaining
competitive expense ratios. Information regarding these transactions is as
follows for the period ended November 30, 1998 (amounts in thousands):
<TABLE>
<CAPTION>
U.S.
Prime Government Tax-
Obligations Obligations Free Treasury
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Advisory
Fees:
Annual fee before
voluntary fee
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............. $ 79 $ 33 $ 14 $ 267
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............. $ 80 $ 108 $ 31 $ 158
12b-1 Fees Investor B:
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% -- -- --
Transfer Agent Fees(b):. $ 25 $ 11 $ 8 $ 14
Fund Accountant Fees:... $ 81 $ 34 $ 19 $ 50
<CAPTION>
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Advisory
Fees:
Annual fee before volun-
tary fee reductions
(percentage of average
net assets)............ 1.00% 1.00% 0.80% 1.16%(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%
Shareholder Service Fees
Investor B:
Annual fee before
voluntary fee
reductions
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
Transfer Agent Fees(b):. $ 139 $ 82 $ 40 $ 67
Fund Accountant Fees:... $ 74 $ 76 $ 55 $ 93
</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.
(b) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 1998.
Continued
112
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Limited Intermediate U.S.
Maturity Government Government
Bond Obligations Income Bond
Fund Fund Fund Fund
--------- ------------ ------------ ----------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.74% 0.74% 0.74% 0.74%
Voluntary fee reduction....... $ 180 $ 36 $ 332 $ 100
Administration Fees:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions...... $ 48 $ 46 $ 57 $ 124
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%
Shareholder Service Fees In-
vestor B:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.25% 0.25% 0.25% 0.25%
Transfer Agent Fees(a):....... $ 24 $ 26 $ 41 $ 37
Fund Accountant Fees:......... $ 35 $ 41 $ 54 $ 69
<CAPTION>
Michigan
Municipal Municipal Conservative Balanced
Bond Bond Allocation Allocation
Fund Fund Fund Fund
--------- ------------ ------------ ----------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.74% 0.74% 1.00% 1.00%
Voluntary fee reduction....... $ 123 $ 231 $ 26 $ 343
Administration Fees:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions...... $ 65 $ 122 $ -- $ --
12b-1 Fees Investor A:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 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%
Shareholder Service Fees In-
vestor B:
Annual fee before voluntary
fee reductions
(percentage of average net
assets)...................... 0.25% 0.25% -- 0.25%
Transfer Agent Fees(a):....... $ 16 $ 24 $ 2 $ 38
Fund Accountant Fees:......... $ 32 $ 49 $ 6 $ 56
</TABLE>
- -------
(a) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 1998.
Continued
113
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
Aggressive Equity
Allocation Income
Fund Fund
---------- ------
<S> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... 1.00% 1.00%
Voluntary fee reduction..................................... $ 23 --
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%
Shareholder Service Fees Investor B:
Annual fee before voluntary fee reductions
(percentage of average net assets)......................... -- 0.25%
Transfer Agent Fees(a):..................................... $ 2 $ 84
Fund Accountant Fees:....................................... $ 23 $ 55
</TABLE>
- -------
(a) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 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 Portfolio 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. Proxy:
On August 13, 1998, August 27, 1998 and September 3, 1998, special meetings
of the shareholders of The Parkstone Group of Funds were held to consider
various proposals. The actual vote tabulations for the various issues are as
follows:
Issue 1. Election of Trustees
<TABLE>
<CAPTION>
Affirmative Against Abstain
---------------- ------------- ----------------
<S> <C> <C> <C>
Robert D. Neary............... 4,736,410,286.37 38,851,537.91 1,636,502,547.47
Leigh Carter.................. 4,736,050,115.24 39,211,709.04 1,636,502,547.47
John F. Durkott............... 4,736,251,004.71 39,010,819.57 1,636,502,547.47
Robert J. Farling............. 4,737,862,669.66 37,399,154.62 1,636,502,547.47
Richard W. Furst.............. 4,737,830,050.85 37,431,773.43 1,636,502,547.47
Gerald L. Gherlein............ 4,737,884,542.62 37,377,281.66 1,636,502,547.47
Herbert R. Martens, Jr........ 4,737,555,605.88 37,706,218.40 1,636,502,547.47
J. William Pullen............. 4,737,841,980.92 37,419,843.36 1,636,502,547.47
</TABLE>
Continued
114
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 2. Change each Fund's investment objective to non-fundamental
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 527,683,288.96 17,059,058.85 18,839,334.97
U.S. Government Obligations Fund.. 139,660,762.66 25,418,146.25 9,016,647.88
Tax-Free Fund..................... 71,092,286.92 2,991,042.39 30,049,880.32
Treasury Fund..................... 121,238,615.63 96,416,503.82 2,358,683.37
Small Capitalization Fund......... 360,236,125.61 15,593,331.37 6,595,107.51
Mid Capitalization Fund........... 421,302,133.13 6,854,637.89 2,517,283.56
Large Capitalization Fund......... 335,780,396.37 756,205.22 963,382.34
International Discovery Fund...... 372,200,284.28 2,981,525.05 1,296,115.10
Limited Maturity Fund............. 147,169,836.83 1,088,641.45 2,462,944.64
Intermediate Government Obliga-
tions Fund....................... 139,089,702.80 3,949,855.11 560,400.34
U.S. Government Income Fund....... 161,482,364.30 2,621,226.32 2,919,159.92
Bond Fund......................... 437,346,213.53 2,010,305.59 1,092,045.00
Municipal Bond Fund............... 117,111,501.44 5,196,346.50 105,479.01
Michigan Municipal Bond Fund...... 179,893,015.09 6,488,219.19 22,568,336.46
Conservative Allocation Fund...... 11,755,287.14 149,998.01 1,321.36
Balanced Allocation Fund.......... 138,445,738.05 4,372,984.83 16,248,026.74
Aggressive Allocation Fund........ 17,423,844.41 5,208,483.24 233,462.10
Equity Income Fund................ 264,017,234.71 10,040,097.73 7,646,843.88
</TABLE>
Issue 3(a). Change to the fundamental investment limitation on underwriting
activities
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 534,417,647.23 9,904,264.49 19,259,771.06
U.S. Government Obligations Fund.. 141,243,448.58 23,739,028.00 9,113,080.21
Tax-Free Fund..................... 100,512,244.74 3,055,380.75 565,584.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 366,047,543.67 6,566,007.94 9,811,012.88
Mid Capitalization Fund........... 426,081,513.81 1,980,724.23 2,611,816.51
Large Capitalization Fund......... 335,835,485.38 389,566.03 1,274,932.52
International Discovery Fund...... 374,166,264.11 1,060,348.09 1,251,312.23
Limited Maturity Fund............. 147,637,620.39 994,264.59 2,089,537.94
Intermediate Government Obliga-
tions Fund....................... 141,482,088.34 1,518,938.35 598,931.56
U.S. Government Income Fund....... 161,436,477.86 2,158,585.01 3,427,687.67
Bond Fund......................... 438,667,284.10 608,478.01 1,172,802.01
Municipal Bond Fund............... 118,018,899.63 3,488,703.17 905,724.15
Michigan Municipal Bond Fund...... 173,704,270.32 6,596,859.41 28,648,441.01
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,344,286.32 4,700,000.09 12,022,463.21
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 270,179,287.80 3,947,793.71 7,577,094.81
</TABLE>
Continued
115
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 3(b). Change to the fundamental investment limitation on real estate
transactions
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 534,522,716.19 9,919,202.54 19,139,764.05
U.S. Government Obligations Fund.. 141,239,351.58 23,743,125.00 9,113,080.21
Tax-Free Fund..................... 100,508,711.74 3,055,378.75 569,119.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 365,910,891.71 6,697,646.69 9,816,026.09
Mid Capitalization Fund........... 425,944,025.78 2,117,324.82 2,612,703.95
Large Capitalization Fund......... 335,795,628.64 441,071.94 1,263,283.35
International Discovery Fund...... 374,189,660.46 1,082,634.17 1,205,629.80
Limited Maturity Fund............. 147,712,413.89 951,419.59 2,057,589.44
Intermediate Government Obliga-
tions Fund....................... 141,556,480.92 1,427,614.09 615,863.24
U.S. Government Income Fund....... 161,508,616.98 2,136,242.83 3,337,890.73
Bond Fund......................... 438,642,530.58 627,836.14 1,178,197.40
Municipal Bond Fund............... 118,001,546.19 3,498,201.23 913,579.53
Michigan Municipal Bond Fund...... 173,413,445.37 6,796,113.01 28,740,012.36
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,346,054.00 4,718,864.55 12,001,831.07
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 270,091,870.58 4,018,591.90 7,593,713.84
</TABLE>
Issue 3(c). Change to fundamental investment limitation on investment in
commodities
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 533,592,227.11 10,678,850.62 19,310,605.05
U.S. Government Obligations Fund.. 141,148,890.58 23,748,567.00 9,198,099.21
Tax-Free Fund..................... 100,486,958.59 3,088,115.90 558,135.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 365,264,883.59 7,367,411.90 9,792,269.00
Mid Capitalization Fund........... 425,673,584.40 2,311,281.39 2,689,188.76
Large Capitalization Fund......... 335,719,261.95 502,875.37 1,277,846.61
International Discovery Fund...... 373,969,440.60 1,330,997.78 1,177,486.05
Limited Maturity Fund............. 147,615,152.89 1,039,864.59 2,066,405.44
Intermediate Government Obliga-
tions Fund....................... 141,483,512.50 1,525,900.91 590,544.84
U.S. Government Income Fund....... 161,378,123.34 2,205,321.43 3,439,305.77
Bond Fund......................... 438,525,592.07 762,876.67 1,160,095.38
Municipal Bond Fund............... 117,544,376.60 4,034,535.36 834,414.99
Michigan Municipal Bond Fund...... 172,864,672.83 7,448,821.84 28,636,076.07
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 138,250,493.04 8,837,184.39 11,979,072.19
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 269,829,949.38 4,265,042.99 7,609,183.95
</TABLE>
Continued
116
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 3(d). Change to fundamental investment limitation regarding industry
concentration
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 534,448,292.23 9,975,304.49 19,158,086.06
U.S. Government Obligations Fund.. 141,180,315.58 23,717,138.00 9,198,103.21
Tax-Free Fund..................... 100,485,643.59 3,082,551.90 565,014.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 366,062,740.83 6,558,816.55 9,803,007.11
Mid Capitalization Fund........... 425,898,591.74 2,118,498.67 2,656,964.14
Large Capitalization Fund......... 335,790,678.16 447,787.11 1,261,518.66
International Discovery Fund...... 374,221,691.67 1,068,858.81 1,187,373.95
Limited Maturity Fund............. 147,769,926.89 943,382.59 2,008,113.44
Intermediate Government Obliga-
tions Fund....................... 141,497,042.02 1,510,947.23 591,969.00
U.S. Government Income Fund....... 161,430,761.86 2,125,559.65 3,466,429.03
Bond Fund......................... 438,646,703.93 634,757.81 1,167,102.38
Municipal Bond Fund............... 117,988,689.06 3,544,364.75 880,273.14
Michigan Municipal Bond Fund...... 173,724,745.97 6,568,648.76 28,656,176.01
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,375,303.58 4,709,542.80 11,981,903.24
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 270,220,902.66 3,891,773.64 7,591,500.02
</TABLE>
Issue 3(e). Change to fundamental investment limitation on loans
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 534,018,521.15 10,430,240.58 19,132,921.05
U.S. Government Obligations Fund.. 141,243,448.58 23,739,028.00 9,113,080.21
Tax-Free Fund..................... 100,236,122.74 3,060,329.75 836,757.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 366,009,731.26 6,645,867.21 9,768,966.02
Mid Capitalization Fund........... 426,036,416.11 2,071,126.17 2,566,512.27
Large Capitalization Fund......... 335,782,319.16 429,999.86 1,287,664.91
International Discovery Fund...... 374,183,364.70 1,100,678.36 1,193,881.30
Limited Maturity Fund............. 147,735,498.89 935,868.09 2,050,055.94
Intermediate Government Obliga-
tions Fund....................... 141,468,707.17 1,515,387.84 615,863.24
U.S. Government Income Fund....... 161,421,357.16 2,227,111.63 3,374,281.75
Bond Fund......................... 438,651,858.69 664,698.11 1,132,007.32
Municipal Bond Fund............... 117,520,873.64 4,034,535.36 857,917.95
Michigan Municipal Bond Fund...... 172,816,475.38 7,483,604.13 28,649,491.23
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,345,653.51 4,723,587.57 11,997,508.54
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 269,961,020.68 4,166,908.84 7,576,246.80
</TABLE>
Continued
117
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 3(f). Change to fundamental investment limitation on borrowing and the
issuance of senior securities
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 532,550,235.71 11,936,698.01 19,094,749.06
U.S. Government Obligations Fund.. 141,269,113.58 23,716,904.00 9,109,539.21
Tax-Free Fund..................... 100,189,573.74 3,109,378.75 834,257.14
Treasury Fund..................... 212,543,744.16 4,553,661.07 2,916,397.59
Small Capitalization Fund......... 365,276,892.33 7,329,157.19 9,818,514.97
Mid Capitalization Fund........... 425,730,206.75 2,332,600.60 2,611,247.20
Large Capitalization Fund......... 335,747,698.06 498,101.14 1,254,184.73
International Discovery Fund...... 373,899,794.57 1,340,750.71 1,237,379.15
Limited Maturity Fund............. 147,687,989.39 945,206.59 2,088,226.94
Intermediate Government Obliga-
tions Fund....................... 141,482,088.34 1,527,938.25 589,931.66
U.S. Government Income Fund....... 161,323,359.80 2,211,093.41 3,488,297.33
Bond Fund......................... 438,530,911.76 767,543.02 1,150,109.34
Municipal Bond Fund............... 116,369,357.81 5,186,051.19 857,917.95
Michigan Municipal Bond Fund...... 172,745,620.13 7,544,746.89 28,659,203.72
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,208,647.36 4,876,199.02 11,981,903.24
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 269,675,983.26 4,486,141.07 7,542,051.99
</TABLE>
Issue 3(g). Change to fundamental investment limitation on issuer
diversification
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 534,202,971.13 10,016,458.59 19,362,253.06
U.S. Government Obligations Fund.. 141,265,576.58 23,716,900.00 9,113,080.21
Tax-Free Fund..................... 100,503,244.74 3,060,329.75 569,635.14
Treasury Fund..................... 212,545,900.16 4,551,505.07 2,916,397.59
Small Capitalization Fund......... 365,430,476.75 7,151,729.81 9,842,357.93
Mid Capitalization Fund........... 424,877,722.75 3,164,822.02 2,631,509.78
Large Capitalization Fund......... 335,802,039.05 474,226.52 1,223,718.36
International Discovery Fund...... 374,150,701.06 1,072,229.72 1,254,993.65
Limited Maturity Fund............. 147,741,768.89 866,432.59 2,113,221.44
Intermediate Government Obliga-
tions Fund....................... 141,229,773.98 1,779,570.20 590,614.07
U.S. Government Income Fund....... 161,037,932.60 2,533,028.13 3,451,789.81
Bond Fund......................... 438,388,131.62 936,423.17 1,124,009.33
Municipal Bond Fund............... 113,815,393.69 7,694,957.44 902,975.82
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 142,366,250.19 4,759,736.18 11,940,763.25
Aggressive Allocation Fund........ 19,953,394.81 2,678,932.85 233,462.09
Equity Income Fund................ 269,336,176.69 4,755,218.09 7,612,781.54
</TABLE>
Continued
118
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 4(a). To approve a change in the fundamental investment limitation on
purchasing securities on margin to make such restriction non-
fundamental.
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 530,213,722.83 9,891,441.87 23,476,518.08
U.S. Government Obligations Fund.. 143,513,182.58 20,859,190.94 9,723,183.27
Tax-Free Fund..................... 101,160,842.61 2,135,972.88 836,394.14
Treasury Fund..................... 203,748,659.92 7,308,067.21 8,957,075.69
Small Capitalization Fund......... 362,999,915.19 9,723,952.97 9,700,696.33
Mid Capitalization Fund........... 422,149,932.68 6,130,203.47 2,393,920.40
Large Capitalization Fund......... 336,124,356.66 506,377.86 869,249.41
International Discovery Fund...... 372,947,408.13 2,365,237.47 1,165,278.83
Limited Maturity Fund............. 147,051,672.29 1,215,593.49 2,454,157.14
Intermediate Government Obliga-
tions Fund....................... 140,342,783.29 2,680,192.93 576,982.03
U.S. Government Income Fund....... 160,991,342.14 2,607,294.87 3,424,113.53
Bond Fund......................... 438,437,030.93 814,032.14 1,197,501.05
Municipal Bond Fund............... 116,003,604.51 6,310,951.04 98,771.40
Michigan Municipal Bond Fund...... 179,299,248.73 6,138,654.05 23,511,667.96
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 138,821,772.44 10,457,422.21 9,787,554.97
Aggressive Allocation Fund........ 17,873,739.22 4,602,062.55 389,987.98
Equity Income Fund................ 268,099,164.98 6,182,498.79 7,422,512.55
</TABLE>
Issue 4(b). To approve a change in the fundamental investment limitation on
writing and selling call options to make such restriction non-
fundamental.
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------- -------------
<S> <C> <C> <C>
Prime Obligations Fund............ 526,718,186.02 10,031,124.79 26,832,371.97
U.S. Government Obligations Fund.. 143,420,631.75 20,863,287.94 9,811,637.10
Tax-Free Fund..................... 101,156,374.61 2,146,956.88 829,878.14
Treasury Fund..................... 203,307,372.16 7,749,354.98 8,957,075.68
Small Capitalization Fund......... 362,847,037.33 9,801,619.31 9,775,907.85
Mid Capitalization Fund........... 421,927,224.03 6,273,937.16 2,472,893.36
Large Capitalization Fund......... 336,047,588.37 508,374.42 944,021.17
International Discovery Fund...... 372,943,501.10 2,353,931.91 1,180,491.42
Limited Maturity Fund............. 147,418,352.99 1,215,593.49 2,087,476.44
Intermediate Government Obliga-
tions Fund....................... 140,335,563.59 2,359,981.69 904,412.97
U.S. Government Income Fund....... 160,956,046.88 2,670,740.73 3,395,962.93
Bond Fund......................... 438,262,704.02 880,670.50 1,305,189.60
Municipal Bond Fund............... 115,982,892.00 6,357,114.56 73,320.39
Michigan Municipal Bond Fund...... 172,958,607.01 7,456,540.47 28,534,423.26
Conservative Allocation Fund...... 11,755,122.37 150,162.78 1,321.36
Balanced Allocation Fund.......... 138,753,471.37 10,453,986.57 9,859,291.68
Aggressive Allocation Fund........ 17,873,739.22 4,602,062.55 389,987.98
Equity Income Fund................ 267,824,365.94 6,100,657.33 7,779,153.05
</TABLE>
Continued
119
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds November 30, 1998
(Unaudited)
Issue 4(c). Limitation regarding investments in securities of any one issuer
applicable to Michigan Municipal Bond Fund which is classified as a
non-diversified fund under the Investment Company Act of 1940, as
amended (the "1940 Act")
<TABLE>
<CAPTION>
Affirmative Against Abstain
-------------- ------------ -------------
<S> <C> <C> <C>
Michigan Municipal Bond Fund....... 185,669,421.59 9,488,068.72 13,792,080.43
</TABLE>
8. Subsequent Events:
Effective December 1, 1998, the Limited Maturity Income Fund, Intermediate
Government Income Fund, U.S. Government Income Fund, Bond Fund, Municipal
Bond Fund and Michigan Municipal Bond Funds changed from declaring and paying
dividends from net investment income monthly to declaring dividends from net
investment income daily and paying monthly.
120
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Prime Obligations Fund
--------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- ------------------------------------------
(Unaudited)
Investor A Investor B Institutional Investor A Investor B(a) Institutional
---------- ---------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period............. $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
------- ------ -------- -------- ------ --------
Investment
Activities
Net investment
income............ 0.024 0.020 0.025 0.045 0.027 0.046
------- ------ -------- -------- ------ --------
Distributions
Net investment
income............ (0.024) (0.020) (0.025) (0.045) (0.027) (0.046)
------- ------ -------- -------- ------ --------
Net Asset Value, End
of Period.......... $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000
======= ====== ======== ======== ====== ========
Total Return........ 2.44%(b) 1.98%(b) 2.49%(b) 4.63%(b) 2.75%(b) 4.73%(b)
Ratios/Supplementary
Data
Net Assets at end of
period (000)....... $16,669 $ 551 $725,678 $217,934 $ 387 $690,947
Ratio of expenses to
average net assets. 0.76%(c) 1.65%(c) 0.65%(c) 0.76%(c) 1.66%(c) 0.66%(c)
Ratio of net
investment income
to average net
assets............. 4.85%(c) 3.92%(c) 4.92%(c) 4.93%(c) 4.01%(c) 5.04%(c)
Ratio of expenses to
average net
assets*............ 0.93%(c) 1.67%(c) 0.67%(c) 0.93%(c) 1.68%(c) 0.68%(c)
<CAPTION>
Year Ended June 30, 1997
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period............. $ 1.000 $ 1.000
---------- -------------
Investment
Activities
Net investment
income............ 0.048 0.049
---------- -------------
Distributions
Net investment
income............ (0.048) (0.049)
---------- -------------
Net Asset Value, End
of Period.......... $ 1.000 $ 1.000
========== =============
Total Return........ 4.91% 5.01%
Ratios/Supplementary
Data
Net Assets at end of
period (000)....... $195,046 $677,324
Ratio of expenses to
average net assets. 0.73% 0.63%
Ratio of net
investment income
to average net
assets............. 4.80% 4.90%
Ratio of expenses to
average net
assets*............ 0.90% 0.65%
</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) For the period September 30, 1997 (commencement of offering Investor B
shares) to May 31, 1998.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
121
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Prime Obligations Fund
---------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
June 30, 1996 June 30, 1995 June 30, 1994 June 30, 1993 (a)
------------------------ ------------------------ ------------------------ ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment
income............. 0.050 0.051 0.047 0.048 0.027 0.028 0.028 0.029
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income............. (0.050) (0.051) (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 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ========
Total Return........ 5.07% 5.17% 4.81% 4.91% 2.75% 2.85% 2.89% 2.91%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........ $147,478 $596,075 $108,565 $640,380 $105,611 $561,697 $129,433 $478,821
Ratio of expenses to
average net assets.. 0.74% 0.64% 0.75% 0.65% 0.74% 0.64% 0.66% 0.64%
Ratio of net
investment income to
average net assets.. 4.93% 5.05% 4.71% 4.83% 2.71% 2.84% 2.86% 2.88%
Ratio of expenses to
average net assets*. 0.91% 0.66% 0.92% 0.67% 0.91% 0.66% 0.71% 0.66%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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.
122
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Obligations Fund
-----------------------------------------------------------------------------------
Six Months Ended Eleven Months Ended Year Ended
November 30, 1998 May 31, 1998 June 30, 1997
-------------------------- --------------------------- ------------------------
(Unaudited)
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------ -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.024 0.024 0.044 0.045 0.047 0.048
------ -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.024) (0.024) (0.044) (0.045) (0.047) (0.048)
------ -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
====== ======== ======== ======== ======== ========
Total Return............ 2.38%(a) 2.43%(a) 4.53%(a) 4.62%(a) 4.79% 4.89%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $ 941 $184,342 $169,210 $185,384 $212,082 $210,162
Ratio of expenses to
average net assets..... 0.75%(b) 0.65%(b) 0.76%(b) 0.66%(b) 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 4.76%(b) 4.81%(b) 4.83%(b) 4.93%(b) 4.69% 4.79%
Ratio of expenses to
average net assets*.... 0.92%(b) 0.67%(b) 0.93%(b) 0.68%(b) 0.91% 0.66%
</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) Not annualized.
(b) Annualized.
See notes to financial statements.
123
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Obligations Fund
-----------------------------------------------------------------------------------------------------
Year Ended Year Ended Year Ended Year Ended
June 30, 1996 June 30, 1995 June 30, 1994 June 30, 1993 (a)
------------------------ ------------------------ ------------------------ -------------------------
Investor A Institutional Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- -------- -------- -------- --------
Investment Activities
Net investment
income............. 0.049 0.050 0.047 0.048 0.027 0.028 0.028 0.028
-------- -------- -------- -------- -------- -------- -------- --------
Distributions
Net investment
income............. (0.049) (0.050) (0.047) (0.048) (0.027) (0.028) (0.028) (0.028)
-------- -------- -------- -------- -------- -------- -------- --------
Net Asset Value, End
of Period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ======== ======== ========
Total Return......... 4.99% 5.10% 4.76% 4.87% 2.69% 2.79% 2.84% 2.86%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........ $186,944 $207,451 $169,179 $227,565 $172,482 $192,612 $208,311 $223,855
Ratio of expenses to
average net
assets.............. 0.74% 0.64% 0.77% 0.67% 0.77% 0.67% 0.66% 0.64%
Ratio of net
investment income to
average net assets.. 4.88% 4.99% 4.62% 4.76% 2.64% 2.74% 2.79% 2.81%
Ratio of expenses to
average net assets*. 0.91% 0.66% 0.94% 0.69% 0.94% 0.69% 0.72% 0.66%
</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.
124
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Tax-Free Fund
------------------------------------------------------------------------------------
Six Months Ended Eleven Months Ended Year Ended
November 30, 1998 May 31, 1998 June 30, 1997
--------------------------- --------------------------- ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
(Unaudited)
<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.. 0.013 0.014 0.026 0.027 0.028 0.029
------- -------- ------- -------- ------- --------
Distributions
Net investment income.. (0.013) (0.014) (0.026) (0.027) (0.028) (0.029)
------- -------- ------- -------- ------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ======== ======= ========
Total Return............ 1.35%(a) 1.40%(a) 2.66%(a) 2.75%(a) 2.83% 2.94%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $ 1,617 $111,953 $55,106 $104,062 $47,466 $108,884
Ratio of expenses to
average net assets..... 0.77%(b) 0.67%(b) 0.76%(b) 0.66%(b) 0.78% 0.68%
Ratio of net investment
income to average net
assets................. 2.72%(b) 2.78%(b) 2.86%(b) 2.96%(b) 2.82% 2.90%
Ratio of expenses to
average net assets*.... 0.94%(b) 0.69%(b) 0.93%(b) 0.68%(b) 0.95% 0.70%
</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) Not annualized.
(b) Annualized.
See notes to financial statements.
125
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Tax-Free Fund
---------------------------------------------------------------------------------------------------
Year Ended
Year Ended June 30, 1996 Year Ended June 30, 1995 Year Ended June 30, 1994 June 30, 1993(a)
------------------------ ------------------------ ------------------------ ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- ------- ------- ------- ------- ------- -------
Investment Activities
Net investment
income............. 0.029 0.030 0.029 0.030 0.018 0.019 0.019 0.019
------- -------- ------- ------- ------- ------- ------- -------
Distributions
Net investment
income............. (0.029) (0.030) (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 $ 1.000 $ 1.000
======= ======== ======= ======= ======= ======= ======= =======
Total Return......... 2.91% 3.02% 2.90% 3.00% 1.81% 1.92% 2.07% 2.10%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........ $41,713 $106,154 $45,102 $98,489 $48,256 $84,465 $54,886 $86,292
Ratio of expenses to
average net assets.. 0.76% 0.66% 0.74% 0.64% 0.68% 0.58% 0.58% 0.55%
Ratio of net
investment income to
average net assets.. 2.89% 2.97% 2.88% 2.97% 1.81% 1.90% 2.05% 2.08%
Ratio of expenses to
average net assets*. 0.93% 0.68% 0.95% 0.70% 0.93% 0.68% 0.72% 0.65%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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.
126
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Treasury Fund
------------------------------------------------------------------------------------
Six Months Ended Eleven Months Ended May
November 30, 1998 31, 1998 Year Ended June 30, 1997
--------------------------- --------------------------- ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.024 0.024 0.045 0.046 0.047 0.048
Distributions
Net investment income.. (0.024) (0.024) (0.045) (0.046) (0.047) (0.048)
------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======== ======== ======== ========
Total Return............ 2.38%(a) 2.43%(a) 4.61%(a) 4.70%(a) 4.82% 4.93%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $ 8,162 $287,500 $240,208 $321,584 $176,006 $324,377
Ratio of expenses to
average net assets..... 0.67%(b) 0.57%(b) 0.67%(b) 0.57%(b) 0.67% 0.57%
Ratio of net investment
income to average net
assets................. 4.79%(b) 4.81%(b) 4.90%(b) 5.00%(b) 4.72% 4.83%
Ratio of expenses to
average net assets*.... 0.92%(b) 0.67%(b) 0.92%(b) 0.67%(b) 0.92% 0.67%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
127
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Treasury Fund
-----------------------------------------------------------------------------
December 1, 1993 to
Year Ended June 30, 1996 Year Ended June 30, 1995 June 30, 1994 (a)
------------------------ ------------------------ ---------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
-------- -------- -------- -------- ------- -------
Investment Activities
Net investment income.. 0.049 0.050 0.047 0.048 0.016 0.017
-------- -------- -------- -------- ------- -------
Distributions
Net investment income.. (0.049) (0.050) (0.047) (0.048) (0.016) (0.017)
-------- -------- -------- -------- ------- -------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======= =======
Total Return............ 5.04% 5.14% 4.81% 4.91% 1.66%(b) 1.72%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $158,723 $223,416 $105,391 $192,232 $56,535 $76,035
Ratio of expenses to
average net assets..... 0.70% 0.60% 0.75% 0.64% 0.64%(c) 0.54%(c)
Ratio of net investment
income to average net
assets................. 4.87% 4.98% 4.82% 4.95% 2.84%(c) 3.15%(c)
Ratio of expenses to
average net assets*.... 0.95% 0.70% 1.04% 0.78% 0.99%(c) 0.74%(c)
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
128
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Small Capitalization Fund
-------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
------------------------------------------- --------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C
---------- ---------- ------------- ---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 25.72 $ 25.02 $ 26.15 $ 27.55 $ 26.99 $ 27.05
-------- ------- -------- -------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.14) (0.23) (0.11) (0.35) (0.53) (0.49)
-------- ------- -------- -------- ------- -------
Net realized and
unrealized gains
(losses) from
investments............. (3.50) (3.39) (3.57) (0.18) (0.14) (0.18)
-------- ------- -------- -------- ------- -------
Total from Investment
Activities............. (3.64) (3.62) (3.68) (0.53) (0.67) (0.67)
-------- ------- -------- -------- ------- -------
Distributions
Net realized gains...... -- -- -- (1.30) (1.30) (1.30)
-------- ------- -------- -------- ------- -------
Total Distributions..... -- -- -- (1.30) (1.30) (1.30)
-------- ------- -------- -------- ------- -------
Net Asset Value, End of
Period.................. $ 22.08 $ 21.40 $ 22.47 $ 25.72 $ 25.02 $ 25.08
======== ======= ======== ======== ======= =======
Total Return (excludes
sales and redemption
charges)................ (14.15)%(a) (14.47)%(a) (14.07)%(a) (1.90)%(a) (2.47)%(a) (2.43)%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $103,249 $29,259 $346,671 $163,178 $41,399 $14,747
Ratio of expenses to
average net assets...... 1.58%(b) 2.33%(b) 1.33%(b) 1.60%(b) 2.35%(b) 2.35%(b)
Ratio of net investment
income (loss) to average
net assets.............. (1.14)%(b) (1.89)%(b) (0.89)%(b) (1.23)%(b) (1.99)%(b) (1.99)%(b)
Portfolio turnover (c)... 32.36% 32.36% 32.36% 46.17% 46.17% 46.17%
<CAPTION>
Institutional
----------------
<S> <C>
Net Asset Value,
Beginning of Period..... $ 27.91
----------------
Investment Activities
Net investment income
(loss)................. (0.27)
----------------
Net realized and
unrealized gains
(losses) from
investments............. (0.19)
----------------
Total from Investment
Activities............. (0.46)
----------------
Distributions
Net realized gains...... (1.30)
----------------
Total Distributions..... (1.30)
----------------
Net Asset Value, End of
Period.................. $ 26.15
================
Total Return (excludes
sales and redemption
charges)................ (1.62)%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $527,805
Ratio of expenses to
average net assets...... 1.35%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.99)%(b)
Portfolio turnover (c)... 46.17%
</TABLE>
- -------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
129
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Small Capitalization Fund
--------------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
------------------------------------------------- ------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 34.17 $ 33.78 $ 33.83 $ 34.50 $ 25.88 $ 25.79 $25.91 $ 26.08
-------- ------- ------- -------- -------- ------- ------ --------
Investment Activities
Net investment income
(loss)............... (0.29) (0.41) (0.34) (0.22) (0.23) (0.39) (0.20) (0.27)
Net realized and
unrealized gains
(losses) from
investments.......... (1.08) (1.13) (1.19) (1.12) 12.17 12.03 11.77 12.34
-------- ------- ------- -------- -------- ------- ------ --------
Total from Investment
Activities........... (1.37) (1.54) (1.53) (1.34) 11.94 11.64 11.57 12.07
-------- ------- ------- -------- -------- ------- ------ --------
Distributions
Net realized gains.... (5.25) (5.25) (5.25) (5.25) (3.65) (3.65) (3.65) (3.65)
-------- ------- ------- -------- -------- ------- ------ --------
Total Distributions... (5.25) (5.25) (5.25) (5.25) (3.65) (3.65) (3.65) (3.65)
-------- ------- ------- -------- -------- ------- ------ --------
Net Asset Value, End of
Period................ $ 27.55 $ 26.99 $ 27.05 $ 27.91 $ 34.17 $ 33.78 $33.83 $ 34.50
======== ======= ======= ======== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges).............. (4.53)% (5.13)% (5.08)% (4.39)% 49.93% 48.87% 48.32% 50.03%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $188,645 $46,895 $14,962 $602,787 $187,016 $30,310 $5,751 $528,866
Ratio of expenses to
average net assets.... 1.57% 2.32% 2.32% 1.32% 1.54% 2.29% 2.29% 1.29%
Ratio of net investment
income (loss) to
average net assets.... (1.19)% (1.94)% (1.94)% (0.94)% (1.18)% (1.93)% (1.94)% (0.93)%
Portfolio turnover(a).. 48.45% 48.45% 48.45% 48.45% 67.22% 67.22% 67.22% 67.22%
</TABLE>
- -------
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
130
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Small Capitalization Fund
----------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
---------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 19.75 $19.83 $24.17 $ 19.83 $ 20.31 $22.71 $ 20.31
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. (0.18) (0.19) (0.05) (0.25) (0.15) (0.09) (0.28)
Net realized and
unrealized
gains (losses)
from
investments.... 8.46 8.30 3.94 8.65 0.09 (2.79) 0.30
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 8.28 8.11 3.89 8.40 (0.06) (2.88) 0.02
------- ------ ------ -------- ------- ------ --------
Distributions
Net realized
gains.......... (2.15) (2.15) (2.15) (2.15) (0.50) -- (0.50)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (2.15) (2.15) (2.15) (2.15) (0.50) -- (0.50)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 25.88 $25.79 $25.91 $ 26.08 $ 19.75 $19.83 $ 19.83
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 44.88% 43.78% 44.37%(d) 45.32% (0.55)% (12.68)%(e) (0.15)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $71,894 $9,990 $ 224 $354,825 $42,791 $2,130 $271,425
Ratio of expenses
to average
net assets...... 1.55% 2.32% 3.53%(f) 1.33% 1.40% 2.35%(f) 1.30%
Ratio of net
investment
income (loss) to
average net
assets.......... (1.27)% (2.03)% (3.06)%(f) 1.06% (1.24)% (2.19)%(f) (1.14)%
Ratio of expenses
to average
net assets*..... 1.58% 2.55% 3.53%(f) 1.33% 1.55% 2.61%(f) 1.30%
Portfolio
turnover (g).... 50.53% 50.53% 50.53% 50.53% 72.64% 72.64% 72.64%
<CAPTION>
Year Ended June 30, 1993
(a)
-------------------------
Investor A Institutional
----------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 14.64 $ 14.64
----------- -------------
Investment
Activities
Net investment
income (loss).. (0.13) (0.14)
Net realized and
unrealized
gains (losses)
from
investments.... 6.75 6.76
----------- -------------
Total from
Investment
Activities..... 6.62 6.62
----------- -------------
Distributions
Net realized
gains.......... (0.95) (0.95)
----------- -------------
Total
Distributions.. (0.95) (0.95)
----------- -------------
Net Asset Value,
End of Period... $ 20.31 $ 20.31
=========== =============
Total Return
(excludes sales
and redemption
charges)........ 45.77% 45.77%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $27,976 $291,462
Ratio of expenses
to average
net assets...... 1.29% 1.26%
Ratio of net
investment
income (loss) to
average net
assets.......... (1.02)% (0.98)%
Ratio of expenses
to average
net assets*..... 1.36% 1.28%
Portfolio
turnover (g).... 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 November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) 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.
(e) Not annualized.
(f) Annualized.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
131
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Mid Capitalization Fund
------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
------------------------------------------- -------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C
---------- ---------- ------------- ---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 14.98 $ 14.20 $ 15.12 $ 15.72 $ 15.12 $15.24
------- ------- -------- ------- ------- ------
Investment Activities
Net investment income
(loss)................. (0.08) (0.13) (0.06) (0.14) (0.23) (0.23)
Net realized and
unrealized gains
(losses) from
investments............ (1.20) (1.14) (1.22) 2.51 2.42 2.46
------- ------- -------- ------- ------- ------
Total from Investment
Activities............. (1.28) (1.27) (1.28) 2.37 2.19 2.23
------- ------- -------- ------- ------- ------
Distributions
Net realized gains...... -- -- -- (3.11) (3.11) (3.11)
------- ------- -------- ------- ------- ------
Total Distributions..... -- -- -- (3.11) (3.11) (3.11)
------- ------- -------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 13.70 $ 12.93 $ 13.84 $ 14.98 $ 14.20 $14.36
======= ======= ======== ======= ======= ======
Total Return (excludes
sales and redemption
charges)................ (8.54)%(a) (8.94)%(a) (8.47)%(a) 16.84%(a) 16.27%(a) 16.44%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $63,622 $19,106 $424,184 $90,183 $23,780 $2,228
Ratio of expenses to
average net assets...... 1.54%(b) 2.30%(b) 1.30%(b) 1.55%(b) 2.30%(b) 2.30%(b)
Ratio of net investment
income (loss) to average
net assets.............. (1.02)%(b) (1.76)%(b) (0.76)%(b) (1.02)%(b) (1.77)%(b) (1.77)%(b)
Portfolio turnover (c)... 49.64% 49.64% 49.64% 38.41% 38.41% 38.41%
<CAPTION>
Institutional
----------------
<S> <C>
Net Asset Value,
Beginning of Period..... $ 15.82
----------------
Investment Activities
Net investment income
(loss)................. (0.11)
Net realized and
unrealized gains
(losses) from
investments............ 2.52
----------------
Total from Investment
Activities............. 2.41
----------------
Distributions
Net realized gains...... (3.11)
----------------
Total Distributions..... (3.11)
----------------
Net Asset Value, End of
Period.................. $ 15.12
================
Total Return (excludes
sales and redemption
charges)................ 16.98%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $518,080
Ratio of expenses to
average net assets...... 1.30%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.77)%(b)
Portfolio turnover (c)... 38.41%
</TABLE>
- -------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
132
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Mid Capitalization Fund
-------------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
------------------------------------------------ ------------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 20.71 $ 20.28 $20.36 $ 20.83 $ 16.56 $ 16.35 $16.40 $ 16.62
------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)............... (0.16) (0.24) (0.21) (0.13) (0.16) (0.23) (0.17) (0.16)
Net realized and
unrealized gains
(losses) from
investments.......... 1.30 1.21 1.22 1.25 4.97 4.82 4.79 5.03
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities........... 1.14 0.97 1.01 1.12 4.81 4.59 4.62 4.87
------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net realized gains.... (6.13) (6.13) (6.13) (6.13) (0.66) (0.66) (0.66) (0.66)
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions... (6.13) (6.13) (6.13) (6.13) (0.66) (0.66) (0.66) (0.66)
------- ------- ------ -------- ------- ------- ------ --------
Net Asset Value, End of
Period................ $ 15.72 $ 15.12 $15.24 $ 15.82 $ 20.71 $ 20.28 $20.36 $ 20.83
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges).............. 5.78% 4.94% 5.17% 5.58% 29.57% 28.59% 28.69% 29.83%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $80,634 $21,994 $2,018 $544,082 $66,260 $15,840 $1,088 $650,495
Ratio of expenses to
average net assets.... 1.56% 2.31% 2.31% 1.31% 1.54% 2.29% 2.29% 1.29%
Ratio of net investment
income (loss) to
average net assets.... (1.05)% (1.80)% (1.80)% (0.80)% (0.94)% (1.70)% (1.73)% (0.68)%
Portfolio turnover (a). 38.47% 38.47% 38.47% 38.47% 49.27% 49.27% 49.27% 49.27%
</TABLE>
- -------
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
133
<PAGE>
- --------------------------------------------------------------------------------
Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Mid Capitalization Fund
----------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
---------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C(b) Institutional Investor A Investor B(c) Institutional
---------- ---------- ------------- ------------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 14.69 $14.63 $16.29 $ 14.70 $ 15.11 $16.66 $ 15.10
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. (0.12) (0.11) (0.02) (0.08) (0.10) (0.05) (0.11)
Net realized and
unrealized
gains (losses)
from
investments.... 3.46 3.30 1.60 3.47 (0.28) (1.98) (0.25)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 3.34 3.19 1.58 3.39 (0.38) (2.03) (0.36)
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income (loss).. -- -- -- -- -- -- --
Net realized
gains.......... (0.48) (0.48) -- (0.49) (0.04) -- (0.04)
In excess of net
realized gains. (0.99) (0.99) (1.47) (0.98) -- -- --
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (1.47) (1.47) (1.47) (1.47) (0.04) -- (0.04)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 16.56 $16.35 $16.40 $ 16.62 $ 14.69 $14.63 $ 14.70
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 24.85% 23.88% 23.56%(f) 25.20% (2.57)% (12.18)%(d) (2.44)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $43,803 $6,073 $ 153 $683,320 $36,108 $1,616 $533,260
Ratio of expenses
to average net
assets.......... 1.51% 2.29% 2.27%(e) 1.29% 1.38% 2.30%(e) 1.28%
Ratio of net
investment
income (loss) to
average net
assets.......... (0.87)% (1.61)% (1.43)%(e) (0.64)% (0.75)% (1.57)%(e) (0.65)%
Ratio of expenses
to average net
assets*......... 1.54% 2.54% 2.53%(e) 1.29% 1.53% 2.56%(e) 1.28%
Portfolio
turnover(g)..... 46.39% 46.39% 46.39% 46.39% 70.87% 70.87% 70.87%
<CAPTION>
Year Ended
June 30, 1993(a)
-------------------------
Investor A Institutional
----------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 12.80 $ 12.80
----------- -------------
Investment
Activities
Net investment
income (loss).. (0.01) (0.01)
Net realized and
unrealized
gains (losses)
from
investments.... 2.74 2.73
----------- -------------
Total from
Investment
Activities..... 2.73 2.72
----------- -------------
Distributions
Net investment
income (loss).. (0.02) (0.02)
Net realized
gains.......... (0.40) (0.40)
In excess of net
realized gains. -- --
----------- -------------
Total
Distributions.. (0.42) (0.42)
----------- -------------
Net Asset Value,
End of Period... $ 15.11 $ 15.10
=========== =============
Total Return
(excludes sales
and redemption
charges)........ 21.42% 21.34%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $26,460 $595,127
Ratio of expenses
to average net
assets.......... 1.28% 1.24%
Ratio of net
investment
income (loss) to
average net
assets.......... (0.12)% (0.09)%
Ratio of expenses
to average net
assets*......... 1.35% 1.27%
Portfolio
turnover(g)..... 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 November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
134
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Large Capitalization Fund
------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
------------------------------------------- -------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C
---------- ---------- ------------- ---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 16.19 $ 15.95 $ 16.27 $ 14.44 $ 14.34 $14.28
------- ------- -------- ------- ------- ------
Investment Activities
Net investment income
(loss)................. (0.05) (0.10) (0.02) (0.06) (0.12) (0.06)
Net realized and
unrealized gains
(losses) from
investments............ 1.92 1.87 1.91 3.51 3.43 3.32
------- ------- -------- ------- ------- ------
Total from Investment
Activities............. 1.87 1.77 1.89 3.45 3.31 3.26
------- ------- -------- ------- ------- ------
Distributions
Net realized gains...... -- -- -- (1.67) (1.67) (1.67)
Tax return of capital... -- -- -- (0.03) (0.03) (0.03)
------- ------- -------- ------- ------- ------
Total Distributions..... -- -- -- (1.70) (1.70) (1.70)
------- ------- -------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 18.06 $ 17.72 $ 18.16 $ 16.19 $ 15.95 $15.84
======= ======= ======== ======= ======= ======
Total Return (excludes
sales and redemption
charges)................ 11.55%(a) 11.10%(a) 11.62%(a) 25.95%(a) 25.12%(a) 24.87%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $22,901 $12,485 $392,585 $21,628 $10,169 $ 268
Ratio of expenses to
average net assets...... 1.34%(b) 2.09%(b) 1.09%(b) 1.35%(b) 2.09%(b) 2.09%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.53)%(b) (1.28)%(b) (0.28)%(b) (0.45)%(b) (1.21)%(b) (1.24)%(b)
Portfolio turnover (c)... 10.92% 10.92% 10.92% 24.74% 24.74% 24.74%
<CAPTION>
Institutional
----------------
<S> <C>
Net Asset Value,
Beginning of Period..... $ 14.48
----------------
Investment Activities
Net investment income
(loss)................. (0.03)
Net realized and
unrealized gains
(losses) from
investments............ 3.52
----------------
Total from Investment
Activities............. 3.49
----------------
Distributions
Net realized gains...... (1.67)
Tax return of capital... (0.03)
----------------
Total Distributions..... (1.70)
----------------
Net Asset Value, End of
Period.................. $ 16.27
================
Total Return (excludes
sales and redemption
charges)................ 26.18%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $358,221
Ratio of expenses to
average net assets...... 1.10%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.19)%(b)
Portfolio turnover (c)... 24.74%
</TABLE>
- -------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
135
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Large Capitalization Fund
--------------------------------------------------------------------------------------------
December 28, 1995 to
Year Ended June 30, 1997 June 30, 1996 (a)
-------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C
---------- ---------- ---------- ------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 11.23 $11.22 $11.16 $ 11.25 $10.00 $10.00 $10.00
------- ------ ------ -------- ------ ------ ------
Investment Activities
Net investment income
(loss)................. -- (0.05) (0.06) 0.03 0.03 0.01 --
Net realized and
unrealized gains
(losses) from
investments............ 3.30 3.25 3.27 3.31 1.23 1.23 1.17
------- ------ ------ -------- ------ ------ ------
Total from Investment
Activities............. 3.30 3.20 3.21 3.34 1.26 1.24 1.17
------- ------ ------ -------- ------ ------ ------
Distributions
Net investment income... (0.01) -- (0.01) (0.03) (0.03) (0.02) --
Net realized gains...... (0.08) (0.08) (0.08) (0.08) -- -- --
Tax return of capital... -- -- -- -- -- -- (0.01)
------- ------ ------ -------- ------ ------ ------
Total Distributions..... (0.09) (0.08) (0.09) (0.11) (0.03) (0.02) (0.01)
------- ------ ------ -------- ------ ------ ------
Net Asset Value, End of
Period.................. $ 14.44 $14.34 $14.28 $ 14.48 $11.23 $11.22 $11.16
======= ====== ====== ======== ====== ====== ======
Total Return (excludes
sales and redemption
charges)................ 29.52% 28.62% 28.82% 29.81% 8.99%(b) 8.77%(b) 8.14%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $12,260 $4,130 $ 42 $338,388 $1,657 $ 832 $ 2
Ratio of expenses to
average net assets...... 1.37% 2.12% 2.12% 1.12% 1.40%(c) 1.78%(c) 2.24%(c)
Ratio of net investment
income (loss)
to average net assets... (0.14)% (0.88)% (0.91)% 0.19% 0.31%(c) (0.32)%(c) (0.45)%(c)
Ratio of expenses to
average net assets*..... (d) (d) (d) (d) 2.62%(c) 4.07%(c) 4.25%(c)
Portfolio turnover (e)... 48.44% 48.44% 48.44% 48.44% 0.86% 0.86% 0.86%
<CAPTION>
Institutional
---------------
<S> <C>
Net Asset Value,
Beginning of Period..... $ 10.00
---------------
Investment Activities
Net investment income
(loss)................. 0.03
Net realized and
unrealized gains
(losses) from
investments............ 1.25
---------------
Total from Investment
Activities............. 1.28
---------------
Distributions
Net investment income... (0.03)
Net realized gains...... --
Tax return of capital... --
---------------
Total Distributions..... (0.03)
---------------
Net Asset Value, End of
Period.................. $ 11.25
===============
Total Return (excludes
sales and redemption
charges)................ 12.86%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $274,150
Ratio of expenses to
average net assets...... 2.19%(c)
Ratio of net investment
income (loss)
to average net assets... 1.26%(c)
Ratio of expenses to
average net assets*..... 2.26%(c)
Portfolio turnover (e)... 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) No fees were waived during this period.
(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.
136
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
International Discovery Fund
------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
------------------------------------------- -------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C
---------- ---------- ------------- ---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 16.51 $ 15.98 $ 16.70 $ 16.25 $ 15.85 $16.21
------- ------- -------- ------- ------- ------
Investment Activities
Net investment income
(loss)................. (0.04) (0.10) (0.02) (0.09) (0.19) (0.17)
Net realized and
unrealized gains
(losses) from
investments and foreign
currencies............. (1.13) (1.09) (1.14) 0.86 0.83 0.83
------- ------- -------- ------- ------- ------
Total from Investment
Activities............. (1.17) (1.19) (1.16) 0.77 0.64 0.66
------- ------- -------- ------- ------- ------
Distributions
Net realized gains...... -- -- -- (0.51) (0.51) (0.51)
------- ------- -------- ------- ------- ------
Total Distributions..... -- -- -- (0.51) (0.51) (0.51)
------- ------- -------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 15.34 $ 14.79 $ 15.54 $ 16.51 $ 15.98 $16.36
======= ======= ======== ======= ======= ======
Total Return (excludes
sales and
redemption charges)..... (7.09)%(a) (7.45)%(a) (6.93)%(a) 5.17%(a) 4.47%(a) 4.49%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $33,033 $10,132 $358,194 $43,268 $12,840 $1,026
Ratio of expenses to
average net assets...... 1.79%(b) 2.54%(b) 1.54%(b) 1.82%(b) 2.56%(b) 2.56%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.94)%(b) (1.69)%(b) (0.71)%(b) (0.75)%(b) (1.49)%(b) (1.48)%(b)
Portfolio turnover (c)... 34.18% 34.18% 34.18% 34.15% 34.15% 34.15%
<CAPTION>
Institutional
----------------
<S> <C>
Net Asset Value,
Beginning of Period..... $ 16.41
----------------
Investment Activities
Net investment income
(loss)................. (0.04)
Net realized and
unrealized gains
(losses) from
investments and foreign
currencies............. 0.84
----------------
Total from Investment
Activities............. 0.80
----------------
Distributions
Net realized gains...... (0.51)
----------------
Total Distributions..... (0.51)
----------------
Net Asset Value, End of
Period.................. $ 16.70
================
Total Return (excludes
sales and
redemption charges)..... 5.31%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $427,922
Ratio of expenses to
average net assets...... 1.56%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.47)%(b)
Portfolio turnover (c)... 34.15%
</TABLE>
- -------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
137
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
International Discovery Fund
----------------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
--------------------------------------------------- -----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 14.01 $ 13.77 $14.08 $ 14.11 $ 12.23 $12.15 $12.42 $ 12.33
------- ------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)............... (0.07) (0.16) (0.15) (0.05) (0.02) (0.08) (0.10) 0.02
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies... 2.31 2.24 2.28 2.35 1.81 1.70 1.79 1.80
------- ------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities........... 2.24 2.08 2.13 2.30 1.79 1.62 1.69 1.82
------- ------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income. -- -- -- -- -- -- -- (0.02)
Net realized gains.... -- -- -- -- (0.01) -- (0.03) (0.02)
------- ------- ------ -------- ------- ------ ------ --------
Total Distributions... -- -- -- -- (0.01) -- (0.03) (0.04)
------- ------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................ $ 16.25 $ 15.85 $16.21 $ 16.41 $ 14.01 $13.77 $14.08 $ 14.11
======= ======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 15.99% 15.11% 15.13% 16.34% 14.65% 13.33% 13.62% 14.76%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $48,557 $13,516 $ 875 $426,111 $39,575 $9,489 $ 474 $364,095
Ratio of expenses to
average net assets.... 1.80% 2.55% 2.56% 1.55% 1.80% 2.55% 2.50% 1.55%
Ratio of net investment
income (loss) to
average net assets.... (0.54)% (1.29)% (1.28)% (0.29)% (0.11)% (0.86)% (0.84)% 0.12%
Ratio of expenses to
average net assets*... (a) (a) (a) (a) 1.88% 2.63% 2.62% 1.55%
Portfolio turnover (b). 45.18% 45.18% 45.18% 45.18% 54.47% 54.47% 54.47% 54.47%
</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) No fees were waived during this period.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
138
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
International Discovery Fund
----------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
---------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (c) Institutional Investor A Investor B (d) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 13.18 $13.21 $12.97 $ 13.24 $ 11.50 $14.12 $ 11.54
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.03 (0.04) 0.03 0.04 (0.02) (0.01) (0.01)
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... (0.36) (0.40) 0.04 (0.33) 1.74 (0.90) 1.75
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... (0.33) (0.44) 0.07 (0.29) 1.72 (0.91) 1.74
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... -- -- -- -- (0.02) -- (0.02)
Net realized
gains.......... (0.62) (0.62) (0.62) (0.62) (0.02) -- (0.02)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.62) (0.62) (0.62) (0.62) (0.04) 0.00 (0.04)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 12.23 $12.15 $12.42 $ 12.33 $ 13.18 $13.21 $ 13.24
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ (2.19)% (3.03)% (1.15)%(g) (1.86)% 14.99% (6.44)%(e) 15.12%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $34,228 $5,469 $ 82 $264,759 $36,297 $2,680 $261,798
Ratio of expenses
to average net
assets.......... 1.78% 2.57% 2.32%(f) 1.56% 1.63% 2.56%(f) 1.52%
Ratio of net
investment
income (loss) to
average net
assets.......... 0.08% (0.49)% 1.74%(f) 0.31% (0.29)% (0.22)%(f) (0.30)%
Ratio of expenses
to average net
assets*......... 1.91% 2.92% 3.27%(f) 1.59% 1.84% 2.61%(f) 1.57%
Portfolio
turnover (h).... 104.39% 104.39% 104.39% 104.39% 37.23% 37.23% 37.23%
<CAPTION>
December 29, 1992 to
June 30, 1993 (a)(b)
------------------------------
Investor A Institutional
------------- ----------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $10.00 $ 10.00
------------- ----------------
Investment
Activities
Net investment
income (loss).. 0.03 0.04
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.48 1.51
------------- ----------------
Total from
Investment
Activities..... 1.51 1.55
------------- ----------------
Distributions
Net investment
income......... (0.01) (0.01)
Net realized
gains.......... -- --
------------- ----------------
Total
Distributions.. (0.01) (0.01)
------------- ----------------
Net Asset Value,
End of Period... $11.50 $ 11.54
============= ================
Total Return
(excludes sales
and redemption
charges)........ (15.11)%(e) 15.52%(e)
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $8,353 $114,822
Ratio of expenses
to average net
assets.......... 1.64%(f) 1.58%(f)
Ratio of net
investment
income (loss) to
average net
assets.......... (1.02)%(f) (0.82)%(f)
Ratio of expenses
to average net
assets*......... 1.81%(f) 1.63%(f)
Portfolio
turnover (h).... 12.47% 12.47%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period December 29,
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 commencement of operations.
(c) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Not annualized.
(f) Annualized.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
139
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- -----------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.50 $ 9.50 $ 9.50 $ 9.49 $ 9.49 $ 9.29 $ 9.49
------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. 0.26 0.23 0.27 0.47 0.40 0.42 0.50
Net realized and
unrealized gains
(losses) from
investments............ 0.07 0.06 0.07 0.01 0.02 (0.01) 0.01
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 0.33 0.29 0.34 0.48 0.42 0.41 0.51
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income... (0.26) (0.22) (0.27) (0.47) (0.41) (0.42) (0.50)
------- ------ -------- ------- ------ ------ --------
Total Distributions..... (0.26) (0.22) (0.27) (0.47) (0.41) (0.42) (0.50)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period.................. $ 9.57 $ 9.57 $ 9.57 $ 9.50 $ 9.50 $ 9.28 $ 9.50
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and
redemption charges)..... 3.52%(a) 3.09%(a) 3.66%(a) 5.23%(a) 4.50%(a) 4.48%(a) 5.46%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $32,892 $1,233 $143,107 $41,571 $1,553 $2,199 $150,510
Ratio of expenses to
average net assets...... 1.06%(b) 1.81%(b) 0.82%(b) 1.07%(b) 1.82%(b) 1.80%(b) 0.82%(b)
Ratio of net investment
income (loss) to average
net assets.............. 5.41%(b) 4.66%(b) 5.68%(b) 5.37%(b) 4.63%(b) 4.60%(b) 5.63%(b)
Ratio of expenses to
average net assets*..... 1.30%(b) 2.05%(b) 1.06%(b) 1.31%(b) 2.06%(b) 2.04%(b) 1.06%(b)
Portfolio turnover (c)... 73.39% 73.39% 73.39% 225.88% 225.88% 225.88% 225.88%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
140
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 9.48 $ 9.46 $ 9.29 $ 9.48 $ 9.71 $ 9.70 $ 9.53 $ 9.71
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)............... 0.55 0.48 0.48 0.57 0.62 0.55 0.58 0.65
Net realized and
unrealized gains
(losses) from
investments.......... 0.01 0.02 -- 0.02 (0.21) (0.22) (0.23) (0.21)
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities........... 0.56 0.50 0.48 0.59 0.41 0.33 0.35 0.44
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income. (0.55) (0.47) (0.48) (0.58) (0.62) (0.55) (0.58) (0.65)
Net realized gains.... -- -- -- -- (0.01) -- -- (0.01)
Tax return of capital. -- -- -- -- (0.01) (0.02) -- (0.01)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions... (0.55) (0.47) (0.48) (0.58) (0.64) (0.57) (0.59) (0.67)
------- ------ ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................ $ 9.49 $ 9.49 $ 9.29 $ 9.49 $ 9.48 $ 9.46 $ 9.29 $ 9.48
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 6.11% 5.39% 5.26% 6.42% 4.37% 3.43% 3.71% 4.65%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $27,381 $1,492 $ 41 $136,126 $14,390 $1,547 $ 11 $136,681
Ratio of expenses to
average net assets.... 1.11% 1.86% 1.86% 0.85% 1.09% 1.84% 1.82% 0.84%
Ratio of net investment
income (loss) to
average net assets.... 5.76% 5.02% 4.97% 6.03% 6.09% 5.35% 5.34% 6.32%
Ratio of expenses to
average net assets*... 1.35% 2.10% 2.10% 1.10% 1.33% 2.08% 2.02% 1.08%
Portfolio turnover (a). 607.84% 607.84% 607.84% 607.84% 618.60% 618.60% 618.60% 618.60%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
141
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
-------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
-------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 9.57 $ 9.56 $ 9.35 $ 9.57 $ 10.18 $ 9.99 $ 10.18
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.56 0.49 0.20 0.58 0.62 0.23 0.64
Net realized and
unrealized
gains (losses)
from
investments.... 0.13 0.12 0.17 0.13 (0.58) (0.44) (0.59)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.69 0.61 0.37 0.71 0.04 (0.21) 0.05
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.55) (0.47) (0.19) (0.57) (0.61) (0.22) (0.62)
Net realized
gains.......... -- -- -- -- -- -- --
In excess of net
realized gains. -- -- -- -- (0.04) -- (0.04)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.55) (0.47) (0.19) (0.57) (0.65) (0.22) (0.66)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.57
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 7.53% 6.68% 3.58%(f) 7.76% 0.32% (2.09)%(d) 0.43%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $18,930 $ 892 -- $141,781 $24,907 $ 629 $156,678
Ratio of expenses
to average net
assets.......... 1.05% 1.85% 1.18%(e) 0.84% 0.86% 1.78%(e) 0.76%
Ratio of net
investment
income (loss) to
average net
assets.......... 5.89% 5.14% 5.61%(e) 6.11% 6.22% 5.36%(e) 6.32%
Ratio of expenses
to average net
assets*......... 1.36% 2.36% 1.18%(e) 1.11% 1.30% 2.33%(e) 1.05%
Portfolio
turnover (g).... 397.97% 397.97% 397.97% 397.97% 353.28% 353.28% 353.28%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.25 $ 10.25
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.65 0.65
Net realized and
unrealized
gains (losses)
from
investments.... 0.13 0.13
---------- -------------
Total from
Investment
Activities..... 0.78 0.78
---------- -------------
Distributions
Net investment
income......... (0.69) (0.69)
Net realized
gains.......... (0.16) (0.16)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.85) (0.85)
---------- -------------
Net Asset Value,
End of Period... $ 10.18 $ 10.18
========== =============
Total Return
(excludes sales
and redemption
charges)........ 7.96% 7.98%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $18,060 $141,706
Ratio of expenses
to average net
assets.......... 0.75% 0.72%
Ratio of net
investment
income (loss) to
average net
assets.......... 6.41% 6.45%
Ratio of expenses
to average net
assets*......... 1.08% 1.01%
Portfolio
turnover (g).... 123.10% 123.10%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
142
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- -----------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.88 $ 9.85 $ 9.88 $ 9.73 $ 9.71 $ 9.54 $ 9.73
------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. 0.24 0.20 0.25 0.49 0.43 0.40 0.52
Net realized and
unrealized gains
(losses) from
investments............ 0.19 0.19 0.18 0.16 0.15 0.18 0.16
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 0.43 0.39 0.43 0.65 0.58 0.58 0.68
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income... (0.24) (0.20) (0.25) (0.49) (0.43) (0.43) (0.52)
Tax return of capital... -- -- -- (0.01) (0.01) (0.01) (0.01)
------- ------ -------- ------- ------ ------ --------
Total Distributions..... (0.24) (0.20) (0.25) (0.50) (0.44) (0.44) (0.53)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period.................. $ 10.07 $10.04 $ 10.06 $ 9.88 $ 9.85 $ 9.68 $ 9.88
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and
redemption charges)..... 4.48%(a) 3.99%(a) 4.52%(a) 6.78%(a) 6.07%(a) 6.19%(a) 7.03%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $12,462 $1,689 $160,623 $14,461 $1,852 $ 235 $171,481
Ratio of expenses to
average net assets...... 1.22%(b) 1.97%(b) 0.97%(b) 1.22%(b) 1.97%(b) 1.96%(b) 0.97%(b)
Ratio of net investment
income (loss) to average
net assets.............. 4.76%(b) 3.99%(b) 5.00%(b) 5.42%(b) 4.67%(b) 4.67%(b) 5.67%(b)
Ratio of expenses to
average net assets*..... 1.31%(b) 2.06%(b) 1.06%(b) 1.31%(b) 2.06%(b) 2.05%(b) 1.06%(b)
Portfolio turnover (c)... 32.70% 32.70% 32.70% 774.28% 774.28% 774.28% 774.28%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
143
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 9.70 $ 9.67 $ 9.52 $ 9.71 $ 9.93 $ 9.89 $ 9.76 $ 9.93
------- ------- ------- -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)............... 0.52 0.45 0.45 0.55 0.60 0.53 0.53 0.62
Net realized and
unrealized gains
(losses) from
investments.......... 0.04 0.03 0.02 0.03 (0.25) (0.24) (0.25) (0.24)
------- ------- ------- -------- ------- ------ ------ --------
Total from Investment
Activities........... 0.56 0.48 0.47 0.58 0.35 0.29 0.28 0.38
------- ------- ------- -------- ------- ------ ------ --------
Distributions
Net investment income. (0.53) (0.44) (0.45) (0.56) (0.58) (0.51) (0.52) (0.60)
------- ------- ------- -------- ------- ------ ------ --------
Total Distributions... (0.53) (0.44) (0.45) (0.56) (0.58) (0.51) (0.52) (0.60)
------- ------- ------- -------- ------- ------ ------ --------
Net Asset Value, End of
Period................ $ 9.73 $ 9.71 $ 9.54 $ 9.73 $ 9.70 $ 9.67 $ 9.52 $ 9.71
======= ======= ======= ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 5.91% 5.09% 5.03% 6.11% 3.69% 2.93% 2.86% 3.95%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $18,552 $ 1,972 $ 194 $187,856 $22,954 $1,843 $ 80 $225,313
Ratio of expenses to
average net assets.... 1.23% 1.98% 1.99% 0.98% 1.21% 1.96% 1.96% 0.96%
Ratio of net investment
income (loss) to
average net assets.... 5.41% 4.67% 4.69% 5.66% 5.51% 4.78% 4.83% 5.76%
Ratio of expenses to
average net assets*... 1.32% 2.07% 2.07% 1.07% 1.30% 2.05% 2.05% 1.05%
Ratio of net investment
income (loss) to
average net assets*... 5.32% 4.58% 4.61% 5.57% 5.42% 4.69% 4.74% 5.67%
Portfolio turnover (a). 1516.78% 1516.78% 1516.78% 1516.78% 916.39% 916.39% 916.39% 916.39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
144
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
--------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
-------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 9.62 $ 9.60 $ 9.42 $ 9.62 $ 10.53 $10.14 $ 10.53
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.50 0.43 0.18 0.52 0.59 0.21 0.60
Net realized and
unrealized
gains (losses)
from
investments.... 0.31 0.30 0.33 0.31 (0.66) (0.54) (0.66)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.81 0.73 0.51 0.83 (0.07) (0.33) (0.06)
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.50) (0.44) (0.17) (0.52) (0.59) (0.21) (0.60)
Net realized
gains.......... -- -- -- -- -- -- --
In excess of net
realized gains. -- -- -- -- (0.25) -- (0.25)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.50) (0.44) (0.17) (0.52) (0.84) (0.21) (0.85)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.62
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 8.69% 7.84% 5.21%(f) 9.02% (0.90)% (3.31)%(d) (0.80)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $27,521 $ 977 $ 9 $249,169 $36,106 $ 531 $281,232
Ratio of expenses
to average
net assets...... 1.25% 2.06% 2.09%(e) 1.04% 1.00% 1.92%(e) 0.90%
Ratio of net
investment
income (loss) to
average net
assets.......... 5.22% 4.41% 4.24%(e) 5.43% 5.80% 4.80%(e) 5.90%
Ratio of expenses
to average
net assets*..... 1.41% 2.42% 2.36%(e) 1.16% 1.29% 2.32%(e) 1.04%
Portfolio
turnover (g).... 549.13% 549.13% 549.13% 549.13% 546.06% 546.06% 546.06%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.42 $ 10.42
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.68 0.68
Net realized and
unrealized
gains (losses)
from
investments.... 0.21 0.22
---------- -------------
Total from
Investment
Activities..... 0.89 0.90
---------- -------------
Distributions
Net investment
income......... (0.73) (0.73)
Net realized
gains.......... (0.05) (0.06)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.78) (0.79)
---------- -------------
Net Asset Value,
End of Period... $ 10.53 $ 10.53
========== =============
Total Return
(excludes sales
and redemption
charges)........ 8.92% 8.94%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $37,055 $272,607
Ratio of expenses
to average
net assets...... 0.90% 0.87%
Ratio of net
investment
income (loss) to
average net
assets.......... 6.51% 6.54%
Ratio of expenses
to average
net assets*..... 1.08% 1.01%
Portfolio
turnover (g).... 225.90% 225.90%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
145
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Income Fund
--------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
----------------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.27 $ 9.24 $ 9.27 $ 9.15 $ 9.13 $ 9.10 $ 9.15
------- ------- -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. 0.27 0.24 0.29 0.61 0.55 0.54 0.63
Net realized and
unrealized gains
(losses) from
investments............ 0.05 0.05 0.05 0.08 0.07 0.08 0.08
------- ------- -------- ------- ------- ------ --------
Total from Investment
Activities............. 0.32 0.29 0.34 0.69 0.62 0.62 0.71
------- ------- -------- ------- ------- ------ --------
Distributions
Net investment income... (0.27) (0.24) (0.29) (0.53) (0.47) (0.47) (0.55)
Tax return of capital... -- -- -- (0.04) (0.04) (0.04) (0.04)
------- ------- -------- ------- ------- ------ --------
Total Distributions..... (0.27) (0.24) (0.29) (0.57) (0.51) (0.51) (0.59)
------- ------- -------- ------- ------- ------ --------
Net Asset Value, End of
Period.................. $ 9.32 $ 9.29 $ 9.32 $ 9.27 $ 9.24 $ 9.21 $ 9.27
======= ======= ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ 3.55%(a) 3.14%(a) 3.69%(a) 7.80%(a) 6.98%(a) 7.03%(a) 8.04%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $45,499 $21,366 $151,639 $54,710 $23,739 $ 363 $161,567
Ratio of expenses to
average net assets...... 0.99%(b) 1.74%(b) 0.74%(b) 1.00%(b) 1.75%(b) 1.74%(b) 0.75%(b)
Ratio of net investment
income (loss) to average
net assets.............. 5.92%(b) 5.13%(b) 6.13%(b) 7.20%(b) 6.45%(b) 6.34%(b) 7.44%(b)
Ratio of expenses to
average net assets*..... 1.33%(b) 2.08%(b) 1.08%(b) 1.34%(b) 2.09%(b) 2.08%(b) 1.09%(b)
Portfolio turnover (c)... 5.55% 5.55% 5.55% 278.94% 278.94% 278.94% 278.94%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
146
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Income Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 9.25 $ 9.21 $ 9.19 $ 9.25 $ 9.42 $ 9.39 $ 9.36 $ 9.42
------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)............... 0.70 0.63 0.64 0.72 0.73 0.66 0.66 0.75
Net realized and
unrealized gains
(losses) from
investments.......... (0.10) (0.09) (0.11) (0.10) (0.17) (0.18) (0.17) (0.17)
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities........... 0.60 0.54 0.53 0.62 0.56 0.48 0.49 0.58
------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net investment income. (0.59) (0.52) (0.50) (0.61) (0.65) (0.59) (0.66) (0.67)
Tax return of capital. (0.11) (0.10) (0.12) (0.11) (0.08) (0.07) -- (0.08)
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions... (0.70) (0.62) (0.62) (0.72) (0.73) (0.66) (0.66) (0.75)
------- ------- ------ -------- ------- ------- ------ --------
Net Asset Value, End of
Period................ $ 9.15 $ 9.13 $ 9.10 $ 9.15 $ 9.25 $ 9.21 $ 9.19 $ 9.25
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges).............. 6.86% 6.06% 6.07% 6.91% 5.97% 5.22% 5.25% 6.34%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $58,589 $23,448 $ 69 $148,854 $52,250 $19,556 $ 70 $130,615
Ratio of expenses to
average net assets.... 1.02% 1.77% 1.77% 0.77% 1.01% 1.76% 1.76% 0.76%
Ratio of net investment
income (loss) to
average net assets.... 7.64% 6.89% 6.89% 7.90% 7.70% 6.92% 6.92% 7.94%
Ratio of expenses to
average net assets*... 1.36% 2.11% 2.11% 1.11% 1.35% 2.10% 2.10% 1.10%
Portfolio turnover (a). 499.53% 499.53% 499.53% 499.53% 348.01% 348.01% 348.01% 348.01%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
147
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Income Fund
-------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
-------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C (c) Institutional Investor A Investor B (d) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 9.41 $ 9.38 $ 9.12 $ 9.41 $ 10.04 $ 9.88 $ 10.04
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.75 0.68 0.28 0.76 0.74 0.28 0.74
Net realized and
unrealized
gains (losses)
from
investments.... -- 0.01 0.24 0.01 (0.64) (0.50) (0.63)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.75 0.69 0.52 0.77 0.10 (0.22) 0.11
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.66) (0.61) (0.25) (0.68) (0.72) (0.27) (0.73)
Tax return of
capital........ (0.08) (0.07) (0.03) (0.08) (0.01) (0.01) (0.01)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.74) (0.68) (0.28) (0.76) (0.73) (0.28) (0.74)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 9.42 $ 9.39 $ 9.36 $ 9.42 $ 9.41 $ 9.38 $ 9.41
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 8.46% 7.71% 5.26%(g) 8.70% 0.94% (2.26)%(e) 1.04%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $50,931 $8,478 $ 29 $110,190 $54,027 $2,787 $101,506
Ratio of expenses
to average
net assets...... 1.04% 1.83% 2.88%(f) 0.83% 0.82% 1.77%(f) 0.72%
Ratio of net
investment
income (loss) to
average net
assets.......... 8.03% 7.28% 11.54%(f) 8.25% 7.42% 6.72%(f) 7.51%
Ratio of expenses
to average
net assets*..... 1.44% 2.44% 2.88%(f) 1.19% 1.36% 2.42%(f) 1.11%
Portfolio
turnover (h).... 114.71% 114.71% 114.71% 114.71% 102.24% 102.24% 102.24%
<CAPTION>
November 12, 1992 to
June 30, 1993 (a)(b)
----------------------------
Investor A Institutional
------------- --------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.00 $ 10.00
------------- --------------
Investment
Activities
Net investment
income (loss).. 0.48 0.48
Net realized and
unrealized
gains (losses)
from
investments.... 0.04 0.04
------------- --------------
Total from
Investment
Activities..... 0.52 0.52
------------- --------------
Distributions
Net investment
income......... (0.48) (0.48)
Tax return of
capital........ -- --
------------- --------------
Total
Distributions.. (0.48) (0.48)
------------- --------------
Net Asset Value,
End of Period... $ 10.04 $ 10.04
============= ==============
Total Return
(excludes sales
and redemption
charges)........ 5.35%(e) 5.37%(e)
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $32,633 $71,862
Ratio of expenses
to average
net assets...... 0.75%(f) 0.70%(f)
Ratio of net
investment
income (loss) to
average net
assets.......... 7.41%(f) 7.49%(f)
Ratio of expenses
to average
net assets*..... 1.23%(f) 1.09%(f)
Portfolio
turnover (h).... 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 November 12,
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 commencement of operations.
(c) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Not annualized.
(f) Annualized.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
148
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Bond Fund
------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- -----------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.99 $10.00 $ 10.04 $ 9.68 $ 9.69 $ 9.65 $ 9.73
------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................. 0.27 0.24 0.29 0.52 0.46 0.47 0.56
Net realized and
unrealized gains
(losses) from
investments............ 0.15 0.15 0.14 0.32 0.32 0.31 0.31
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............. 0.42 0.39 0.43 0.84 0.78 0.78 0.87
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income... (0.28) (0.24) (0.29) (0.53) (0.47) (0.47) (0.56)
------- ------ -------- ------- ------ ------ --------
Total Distributions..... (0.28) (0.24) (0.29) (0.53) (0.47) (0.47) (0.56)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period.................. $ 10.13 $10.15 $ 10.18 $ 9.99 $10.00 $ 9.96 $ 10.04
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)................ 4.35%(a) 3.91%(a) 4.36%(a) 8.83%(a) 8.18%(a) 8.11%(a) 9.15%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $15,041 $6,146 $465,110 $16,669 $6,423 $ 595 $481,998
Ratio of expenses to
average net assets...... 1.18%(b) 1.93%(b) 0.93%(b) 1.19%(b) 1.94%(b) 1.94%(b) 0.94%(b)
Ratio of net investment
income (loss) to average
net assets.............. 5.40%(b) 4.65%(b) 5.65%(b) 5.81%(b) 5.07%(b) 5.06%(b) 6.06%(b)
Ratio of expenses to
average net assets*..... 1.27%(b) 2.02%(b) 1.02%(b) 1.28%(b) 2.03%(b) 2.03%(b) 1.04%(b)
Portfolio turnover (c)... 171.28% 171.28% 171.28% 545.68% 545.68% 545.68% 545.68%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
149
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 9.51 $ 9.51 $ 9.47 $ 9.56 $ 9.67 $ 9.68 $ 9.64 $ 9.72
------- ------ ------ -------- ------- ------- ------- --------
Investment Activities
Net investment income
(loss)............... 0.56 0.50 0.49 0.59 0.57 0.50 0.50 0.59
Net realized and
unrealized gains
(losses) from
investments.......... 0.17 0.16 0.17 0.17 (0.16) (0.17) (0.17) (0.16)
------- ------ ------ -------- ------- ------- ------- --------
Total from Investment
Activities........... 0.73 0.66 0.66 0.76 0.41 0.33 0.33 0.43
------- ------ ------ -------- ------- ------- ------- --------
Distributions
Net investment income. (0.56) (0.48) (0.48) (0.59) (0.57) (0.50) (0.50) (0.59)
------- ------ ------ -------- ------- ------- ------- --------
Total Distributions... (0.56) (0.48) (0.48) (0.59) (0.57) (0.50) (0.50) (0.59)
------- ------ ------ -------- ------- ------- ------- --------
Net Asset Value, End of
Period................ $ 9.68 $ 9.69 $ 9.65 $ 9.73 $ 9.51 $ 9.51 $ 9.47 $ 9.56
======= ====== ====== ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges).............. 7.92% 7.09% 7.15% 8.20% 4.27% 3.46% 3.50% 4.49%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $19,760 $5,967 $ 508 $492,102 $20,175 $ 4,426 $ 210 $549,336
Ratio of expenses to
average net assets.... 1.19% 1.94% 1.94% 0.94% 1.19% 1.94% 1.91% 0.94%
Ratio of net investment
income (loss) to
average net assets.... 5.88% 5.15% 5.18% 6.13% 5.71% 4.97% 5.00% 5.96%
Ratio of expenses to
average net assets*... 1.28% 2.03% 2.03% 1.03% 1.28% 2.03% 2.03% 1.03%
Portfolio turnover (a). 827.00% 827.00% 827.00% 827.00% 1189.27% 1189.27% 1189.27% 1189.27%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
150
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Bond Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
--------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 9.30 $ 9.26 $ 9.02 $ 9.29 $ 10.54 $ 9.95 $ 10.53
------- ------- ------- -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.58 0.52 0.22 0.61 0.59 0.22 0.60
Net realized and
unrealized
gains (losses)
from
investments.... 0.38 0.42 0.62 0.43 (0.72) (0.70) (0.72)
------- ------- ------- -------- ------- ------ --------
Total from
Investment
Activities..... 0.96 0.94 0.84 1.04 (0.13) (0.48) (0.12)
------- ------- ------- -------- ------- ------ --------
Distributions
Net investment
income......... (0.58) (0.52) (0.22) (0.61) (0.57) (0.21) (0.58)
Net realized
gains.......... -- -- -- -- -- -- --
In excess of net
realized gains. (0.01) -- -- -- (0.54) -- (0.54)
------- ------- ------- -------- ------- ------ --------
Total
Distributions.. (0.59) (0.52) (0.22) (0.61) (1.11) (0.21) (1.12)
------- ------- ------- -------- ------- ------ --------
Net Asset Value,
End of Period... $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.29
======= ======= ======= ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 10.85% 10.62% 8.41%(f) 11.78% (1.62)% (4.84)%(d) (1.52)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $17,572 $ 1,330 $ 28 $509,189 $18,391 $ 485 $469,903
Ratio of expenses
to average
net assets...... 1.24% 2.03% 1.99%(e) 1.02% 0.98% 1.89%(e) 0.88%
Ratio of net
investment
income (loss) to
average net
assets.......... 6.32% 5.54% 5.62%(e) 6.54% 5.86% 5.34%(e) 5.97%
Ratio of expenses
to average
net assets*..... 1.39% 2.39% 2.26%(e) 1.14% 1.27% 2.29%(e) 1.02%
Portfolio
turnover (g).... 1010.64% 1010.64% 1010.64% 1010.64% 893.27% 893.27% 893.27%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.54 $ 10.54
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.71 0.71
Net realized and
unrealized
gains (losses)
from
investments.... 0.47 0.46
---------- -------------
Total from
Investment
Activities..... 1.18 1.17
---------- -------------
Distributions
Net investment
income......... (0.73) (0.73)
Net realized
gains.......... (0.45) (0.45)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (1.18) (1.18)
---------- -------------
Net Asset Value,
End of Period... $ 10.54 $ 10.53
========== =============
Total Return
(excludes sales
and redemption
charges)........ 11.93% 11.84%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $18,562 $442,291
Ratio of expenses
to average
net assets...... 0.89% 0.87%
Ratio of net
investment
income (loss) to
average net
assets.......... 6.47% 6.50%
Ratio of expenses
to average
net assets*..... 1.07% 1.01%
Portfolio
turnover (g).... 443.98% 443.98%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
151
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Municipal Bond Fund
---------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
--------------------------------------- ---------------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.53 $10.50 $ 10.53 $10.53 $10.51 $ 10.54
------ ------ -------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.19 0.15 0.20 0.35 0.28 0.37
Net realized and
unrealized gains
(losses) from
investments........... 0.15 0.15 0.15 0.22 0.21 0.21
------ ------ -------- ------ ------ --------
Total from Investment
Activities............ 0.34 0.30 0.35 0.57 0.49 0.58
------ ------ -------- ------ ------ --------
Distributions
Net investment income.. (0.19) (0.15) (0.20) (0.39) (0.32) (0.41)
Net realized gains..... -- -- -- (0.18) (0.18) (0.18)
------ ------ -------- ------ ------ --------
Total Distributions.... (0.19) (0.15) (0.20) (0.57) (0.50) (0.59)
------ ------ -------- ------ ------ --------
Net Asset Value, End of
Period................. $10.68 $10.65 $ 10.68 $10.53 $10.50 $ 10.53
====== ====== ======== ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 3.32%(a) 2.84%(a) 3.34%(a) 5.46%(a) 4.75%(a) 5.71%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $8,405 $ 646 $115,586 $9,502 $ 706 $123,856
Ratio of expenses to
average net assets..... 1.01%(b) 1.76%(b) 0.76%(b) 1.02%(b) 1.77%(b) 0.77%(b)
Ratio of net investment
income (loss) to
average net assets..... 3.51%(b) 2.75%(b) 3.76%(b) 3.64%(b) 2.89%(b) 3.89%(b)
Ratio of expenses to
average net assets*.... 1.30%(b) 2.05%(b) 1.06%(b) 1.31%(b) 2.06%(b) 1.07%(b)
Portfolio turnover (c).. 4.03% 4.03% 4.03% 85.56% 85.56% 85.56%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
152
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Municipal Bond Fund
-----------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
----------------------------------- -----------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.43 $10.39 $ 10.43 $10.39 $10.36 $ 10.39
------ ------ -------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.44 0.36 0.46 0.41 0.33 0.43
Net realized and
unrealized gains
(losses) from
investments........... 0.12 0.13 0.14 0.03 0.03 0.04
------ ------ -------- ------ ------ --------
Total from Investment
Activities............ 0.56 0.49 0.60 0.44 0.36 0.47
------ ------ -------- ------ ------ --------
Distributions
Net investment income.. (0.41) (0.32) (0.44) (0.40) (0.33) (0.43)
Net realized gains..... (0.05) (0.05) (0.05) -- -- --
------ ------ -------- ------ ------ --------
Total Distributions.... (0.46) (0.37) (0.49) (0.40) (0.33) (0.43)
------ ------ -------- ------ ------ --------
Net Asset Value, End of
Period................. $10.53 $10.51 $ 10.54 $10.43 $10.39 $ 10.43
====== ====== ======== ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.47% 4.81% 5.89% 4.29% 3.48% 4.55%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $9,601 $ 993 $134,579 $7,835 $ 735 $132,527
Ratio of expenses to
average net assets..... 1.06% 1.81% 0.81% 1.05% 1.80% 0.80%
Ratio of net investment
income (loss) to
average net assets..... 4.19% 3.43% 4.41% 3.85% 3.11% 4.10%
Ratio of expenses to
average net assets*.... 1.35% 2.10% 1.10% 1.34% 2.09% 1.09%
Portfolio turnover (a).. 48.83% 48.83% 48.83% 47.46% 47.46% 47.46%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
153
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Municipal Bond Fund
----------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
----------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C (b)(c) Institutional Investor A Investor B (d) Institutional
---------- ---------- ----------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.29 $10.26 $ 9.88 $ 10.29 $ 10.92 $10.76 $ 10.92
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.41 0.33 (0.03) 0.46 0.40 0.13 0.41
Net realized and
unrealized
gains (losses)
from
investments.... 0.27 0.27 0.65 0.27 (0.31) (0.50) (0.31)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.68 0.60 0.62 0.73 0.09 (0.37) 0.10
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.41) (0.33) (0.14) (0.46) (0.39) (0.13) (0.40)
Net realized
gains.......... -- -- -- -- (0.21) -- (0.21)
In excess of net
realized gains. (0.17) (0.17) (0.16) (0.17) (0.12) -- (0.12)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.58) (0.50) (0.30) (0.63) (0.72) (0.13) (0.73)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 10.39 $10.36 $10.20 $ 10.39 $ 10.29 $10.26 $ 10.29
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 7.02% 6.17% 3.47%(g) 7.25% 0.71% (3.41)%(e) 0.81%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $11,378 $ 447 -- $134,784 $13,123 $ 359 $147,687
Ratio of expenses
to average
net assets...... 1.02% 1.80% 0.71%(f) 0.80% 0.87% 1.80%(f) 0.77%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.00% 3.22% (0.54)%(f) 4.21% 3.72% 2.88%(f) 3.83%
Ratio of expenses
to average
net assets*..... 1.33% 2.33% 0.71%(f) 1.08% 1.32% 2.37%(f) 1.06%
Portfolio
turnover (h).... 35.15% 35.15% 35.15% 35.15% 44.39% 44.39% 44.39%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $10.58 $ 10.58
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.49 0.49
Net realized and
unrealized
gains (losses)
from
investments.... 0.48 0.48
---------- -------------
Total from
Investment
Activities..... 0.97 0.97
---------- -------------
Distributions
Net investment
income......... (0.53) (0.53)
Net realized
gains.......... (0.10) (0.10)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.63) (0.63)
---------- -------------
Net Asset Value,
End of Period... $10.92 $ 10.92
========== =============
Total Return
(excludes sales
and redemption
charges)........ 9.46% 9.48%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $9,333 $146,302
Ratio of expenses
to average
net assets...... 0.76% 0.73%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.56% 4.61%
Ratio of expenses
to average
net assets*..... 1.09% 1.02%
Portfolio
turnover (h).... 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) There was only one share outstanding for the Investor C shares at June 30,
1995.
(c) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Not annualized.
(f) Annualized.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
154
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
-----------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- ----------------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 11.06 $11.07 $ 11.06 $ 10.89 $10.90 $ 10.89
------- ------ -------- ------- ------ --------
Investment Activities
Net investment income
(loss)................ 0.22 0.18 0.24 0.42 0.34 0.44
Net realized and
unrealized gains
(losses) from
investments........... 0.12 0.12 0.12 0.23 0.23 0.23
------- ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.34 0.30 0.36 0.65 0.57 0.67
------- ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.22) (0.18) (0.24) (0.45) (0.37) (0.47)
Net realized gains..... -- -- -- (0.03) (0.03) (0.03)
------- ------ -------- ------- ------ --------
Total Distributions.... (0.22) (0.18) (0.24) (0.48) (0.40) (0.50)
------- ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 11.18 $11.19 $ 11.18 $ 11.06 $11.07 $ 11.06
======= ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 3.22%(a) 2.73%(a) 3.24%(a) 5.96%(a) 5.32%(a) 6.30%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $33,155 $3,420 $198,085 $38,536 $3,983 $206,246
Ratio of expenses to
average net assets..... 1.00%(b) 1.75%(b) 0.75%(b) 0.99%(b) 1.74%(b) 0.74%(b)
Ratio of net investment
income (loss) to
average net assets..... 3.97%(b) 3.22%(b) 4.22%(b) 4.09%(b) 3.34%(b) 4.34%(b)
Ratio of expenses to
average net assets*.... 1.29%(b) 2.04%(b) 1.04%(b) 1.28%(b) 2.03%(b) 1.03%(b)
Portfolio turnover (c).. 3.39% 3.39% 3.39% 26.24% 26.24% 26.24%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
155
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
-----------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
----------------------------------- -----------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.76 $10.76 $ 10.77 $ 10.75 $10.75 $ 10.76
------- ------ -------- ------- ------ --------
Investment Activities
Net investment income
(loss)................ 0.49 0.41 0.51 0.47 0.40 0.50
Net realized and
unrealized gains
(losses) from
investments........... 0.14 0.13 0.14 0.04 0.04 0.04
------- ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.63 0.54 0.65 0.51 0.44 0.54
------- ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.46) (0.36) (0.49) (0.47) (0.40) (0.50)
Net realized gains..... (0.04) (0.04) (0.04) (0.03) (0.03) (0.03)
------- ------ -------- ------- ------ --------
Total Distributions.... (0.50) (0.40) (0.53) (0.50) (0.43) (0.53)
------- ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 10.89 $10.90 $ 10.89 $ 10.76 $10.76 $ 10.77
======= ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 5.89% 5.05% 6.11% 4.87% 4.13% 5.12%
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $38,302 $3,503 $194,950 $36,681 $3,565 $185,191
Ratio of expenses to
average net assets..... 1.01% 1.76% 0.76% 1.02% 1.77% 0.77%
Ratio of net investment
income (loss) to
average net assets..... 4.48% 3.73% 4.73% 4.32% 3.57% 4.57%
Ratio of expenses to
average net assets*.... 1.30% 2.05% 1.05% 1.31% 2.06% 1.06%
Portfolio turnover (a).. 28.48% 28.48% 28.48% 27.66% 27.66% 27.66%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
156
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
----------------------------------------------------------------------------------------------
Year Ended November 30, 1995 Year Ended June 30, 1994
----------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C (b)(c) Institutional Investor A Investor B (d) Institutional
---------- ---------- ----------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.53 $10.52 $10.11 $ 10.53 $ 10.97 $11.09 $ 10.97
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.48 0.40 (0.02) 0.50 0.47 0.16 0.48
Net realized and
unrealized
gains (losses)
from
investments.... 0.23 0.24 0.62 0.25 (0.36) (0.57) (0.36)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 0.71 0.64 0.60 0.75 0.11 (0.41) 0.12
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.48) (0.40) -- (0.50) (0.45) (0.16) (0.46)
Net realized
gains.......... (0.01) (0.01) (0.17) (0.02) (0.01) -- (0.01)
In excess of net
realized gains. -- -- -- (0.09) -- (0.09)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.49) (0.41) (0.17) (0.52) (0.55) (0.16) (0.56)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period... $ 10.75 $10.75 $10.54 $ 10.76 $ 10.53 $10.52 $ 10.53
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)........ 6.99% 6.28% 3.39%(g) 7.33% 0.92% (3.69)%(e) 1.02%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $37,874 $2,270 -- $176,068 $42,204 $1,302 $181,051
Ratio of expenses
to average net
assets.......... 1.00% 1.78% 0.48%(f) 0.78% 0.85% 1.77%(f) 0.75%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.57% 3.80% (0.32)%(f) 4.79% 4.25% 3.51%(f) 4.35%
Ratio of expenses
to average net
assets*......... 1.32% 2.32% 0.48%(f) 1.07% 1.29% 2.32%(f) 1.04%
Portfolio
turnover (h).... 26.06% 26.06% 26.06% 26.06% 6.69% 6.69% 6.69%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.58 $ 10.58
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.50 0.50
Net realized and
unrealized
gains (losses)
from
investments.... 0.47 0.47
---------- -------------
Total from
Investment
Activities..... 0.97 0.97
---------- -------------
Distributions
Net investment
income......... (0.54) (0.54)
Net realized
gains.......... (0.04) (0.04)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.58) (0.58)
---------- -------------
Net Asset Value,
End of Period... $ 10.97 $ 10.97
========== =============
Total Return
(excludes sales
and redemption
charges)........ 9.40% 9.42%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $32,778 $165,414
Ratio of expenses
to average net
assets.......... 0.78% 0.76%
Ratio of net
investment
income (loss) to
average net
assets.......... 4.67% 4.70%
Ratio of expenses
to average net
assets*......... 1.12% 1.05%
Portfolio
turnover (h).... 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) There was only one share outstanding for the Investor C shares at June 30,
1995.
(c) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(d) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(e) Not annualized.
(f) Annualized.
(g) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(h) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
157
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Conservative Allocation Fund
----------------------------------------------------------
Six Months Ended Eleven Months Ended December 30, 1996 to
November 30, 1998 May 31, 1998 June 30, 1997 (a)
----------------- ------------------- --------------------
Institutional Institutional Institutional
----------------- ------------------- --------------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 11.08 $ 10.36 $ 10.00
------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.20 0.35 0.14
Net realized and
unrealized gains
(losses) from
investments........... 0.19 0.79 0.34
------- ------- -------
Total from Investment
Activities............ 0.39 1.14 0.48
------- ------- -------
Distributions
Net investment income.. (0.20) (0.35) (0.12)
Net realized gains..... -- (0.07) --
------- ------- -------
Total Distributions.... (0.20) (0.42) (0.12)
------- ------- -------
Net Asset Value, End of
Period................. $ 11.27 $ 11.08 $ 10.36
======= ======= =======
Total Return (excludes
sales and redemption
charges)............... 3.54%(b) 11.18%(b) 4.87%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $18,688 $17,031 $10,287
Ratio of expenses to
average net assets..... 1.08%(c) 1.07%(c) 1.64%(c)
Ratio of net investment
income (loss) to
average net assets..... 3.56%(c) 3.69%(c) 3.12%(c)
Ratio of expenses to
average net assets*.... 1.38%(c) 1.37%(c) 1.94%(c)
Portfolio turnover...... 118.34% 99.41% 62.11%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
158
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Balanced Allocation Fund
-------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
---------------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Inverstor C Institutional
---------- ---------- ------------- ---------- ---------- ----------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 13.82 $13.81 $ 13.80 $ 13.00 $13.00 $12.92 $ 12.99
------- ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.15 0.10 0.17 0.29 0.19 0.18 0.32
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.... (0.03) (0.03) (0.03) 1.21 1.21 1.21 1.20
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.12 0.07 0.14 1.50 1.40 1.39 1.52
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.15) (0.09) (0.17) (0.32) (0.23) (0.23) (0.35)
Net realized gains..... -- -- -- (0.36) (0.36) (0.36) (0.36)
------- ------ -------- ------- ------ ------ --------
Total Distributions.... (0.15) (0.09) (0.17) (0.68) (0.59) (0.59) (0.71)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................. $ 13.79 $13.79 $ 13.77 $ 13.82 $13.81 $13.72 $ 13.80
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 0.91%(a) 0.52%(a) 1.05%(a) 11.87%(a) 11.05%(a) 11.04%(a) 12.06%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $17,992 $7,311 $235,079 $19,404 $7,988 $ 927 $262,533
Ratio of expenses to
average net assets..... 1.36%(b) 2.11%(b) 1.11%(b) 1.36%(b) 2.11%(b) 2.11%(b) 1.12%(b)
Ratio of net investment
income (loss) to
average net assets..... 2.14%(b) 1.39%(b) 2.39%(b) 2.32%(b) 1.57%(b) 1.56%(b) 2.57%(b)
Ratio of expenses to
average net assets*.... 1.61%(b) 2.36%(b) 1.36%(b) 1.62%(b) 2.37%(b) 2.37%(b) 1.37%(b)
Portfolio turnover (c).. 85.06% 85.06% 85.06% 117.80% 117.80% 117.80% 117.80%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio 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 classes of shares issued.
See notes to financial statements.
159
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Balanced Allocation Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 13.37 $13.36 $13.28 $ 13.37 $ 12.19 $12.18 $12.12 $ 12.19
------- ------ ------ -------- ------- ------ ------ --------
Investment Activities
Net investment income
(loss)............... 0.32 0.21 0.21 0.35 0.32 0.23 0.24 0.36
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies... 1.12 1.13 1.14 1.12 1.74 1.74 1.71 1.74
------- ------ ------ -------- ------- ------ ------ --------
Total from Investment
Activities........... 1.44 1.34 1.35 1.47 2.06 1.97 1.95 2.10
------- ------ ------ -------- ------- ------ ------ --------
Distributions
Net investment income. (0.33) (0.22) (0.23) (0.37) (0.31) (0.22) (0.22) (0.35)
Net realized gains.... (1.48) (1.48) (1.48) (1.48) (0.57) (0.57) (0.57) (0.57)
------- ------ ------ -------- ------- ------ ------ --------
Total Distributions... (1.81) (1.70) (1.71) (1.85) (0.88) (0.79) (0.79) (0.92)
------- ------ ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................ $ 13.00 $13.00 $12.92 $ 12.99 $ 13.37 $13.36 $13.28 $ 13.37
======= ====== ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 11.61% 10.82% 10.90% 11.86% 17.51% 16.71% 16.61% 17.81%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $18,826 $6,299 $ 795 $245,347 $17,097 $4,278 $ 362 $113,493
Ratio of expenses to
average net assets.... 1.36% 2.11% 2.11% 1.10% 1.41% 2.16% 2.16% 1.16%
Ratio of net investment
income (loss) to
average net assets.... 2.47% 1.73% 1.75% 2.77% 2.37% 1.64% 1.65% 2.62%
Ratio of expenses to
average net assets*... 1.61% 2.36% 2.36% 1.36% 1.66% 2.45% 2.41% 1.41%
Portfolio turnover (a). 425.05% 425.05% 425.05% 425.05% 437.90% 437.90% 437.90% 437.90%
</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) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
160
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Balanced Allocation Fund
--------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
-------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 10.67 $10.67 $11.13 $ 10.67 $ 11.09 $11.71 $ 11.08
------- ------ ------ ------- ------- ------ -------
Investment
Activities
Net investment
income (loss).. 0.28 0.20 0.09 0.31 0.26 0.10 0.27
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.69 1.67 1.16 1.68 (0.43) (1.05) (0.41)
------- ------ ------ ------- ------- ------ -------
Total from
Investment
Activities..... 1.97 1.87 1.25 1.99 (0.17) (0.95) (0.14)
------- ------ ------ ------- ------- ------ -------
Distributions
Net investment
income......... (0.29) (0.20) (0.10) (0.31) (0.25) (0.09) (0.27)
Net realized
gains.......... (0.01) (0.06) -- (0.03) -- -- --
In excess of net
realized gains. (0.15) (0.10) (0.16) (0.13) -- -- --
------- ------ ------ ------- ------- ------ -------
Total
Distributions.. (0.45) (0.36) (0.26) (0.47) (0.25) (0.09) (0.27)
------- ------ ------ ------- ------- ------ -------
Net Asset Value,
End of Period... $ 12.19 $12.18 $12.12 $ 12.19 $ 10.67 $10.67 $ 10.67
======= ====== ====== ======= ======= ====== =======
Total Return
(excludes sales
and redemption
charges)........ 18.96% 17.96% 17.53%(f) 19.22% (1.63)% (8.16)%(d) (1.44)%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $12,849 $1,291 $ 114 $89,294 $11,901 $ 744 $71,427
Ratio of expenses
to average
net assets...... 1.47% 2.25% 2.16%(e) 1.25% 1.18% 2.05%(e) 1.09%
Ratio of net
investment
income (loss) to
average net
assets.......... 2.54% 1.74% 1.65%(e) 2.75% 2.38% 1.94%(e) 2.49%
Ratio of expenses
to average
net assets*..... 1.78% 2.77% 2.68%(e) 1.52% 1.63% 2.61%(e) 1.39%
Portfolio
turnover (g).... 250.66% 250.66% 250.66% 250.66% 192.39% 192.39% 192.39%
<CAPTION>
Year Ended
June 30, 1993 (a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period.......... $ 9.68 $ 9.68
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.28 0.28
Net realized and
unrealized
gains (losses)
from
investments and
foreign
currencies..... 1.42 1.41
---------- -------------
Total from
Investment
Activities..... 1.70 1.69
---------- -------------
Distributions
Net investment
income......... (0.29) (0.29)
Net realized
gains.......... -- --
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.29) (0.29)
---------- -------------
Net Asset Value,
End of Period... $11.09 $ 11.08
========== =============
Total Return
(excludes sales
and redemption
charges)........ 17.74% 17.66%
Ratios/Supplementary
Data:
Net Assets at end
of period (000). $6,115 $42,318
Ratio of expenses
to average
net assets...... 1.18% 1.15%
Ratio of net
investment
income (loss) to
average net
assets.......... 2.66% 2.70%
Ratio of expenses
to average
net assets*..... 1.53% 1.46%
Portfolio
turnover (g).... 177.99% 177.99%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
161
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Aggressive Allocation Fund
----------------------------------------------------------
Six Months Ended Eleven Months Ended December 30, 1996
November 30, 1998 May 31, 1998 to June 30, 1997 (a)
----------------- ------------------- --------------------
Institutional Institutional Institutional
----------------- ------------------- --------------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 11.75 $ 10.57 $ 10.00
------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.06 0.12 0.07
Net realized and
unrealized gains
(losses) from
investments and
foreign currencies.... (0.34) 1.19 0.56
------- ------- -------
Total from Investment
Activities............ (0.28) 1.31 0.63
------- ------- -------
Distributions
Net investment income.. (0.05) (0.13) (0.06)
------- ------- -------
Total Distributions.... (0.05) (0.13) (0.06)
------- ------- -------
Net Asset Value, End of
Period................. $ 11.42 $ 11.75 $ 10.57
======= ======= =======
Total Return (excludes
sales and redemption
charges)............... (2.36)%(b) 12.45%(b) 6.38%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $29,603 $33,816 $39,043
Ratio of expenses to
average net assets..... 1.39%(c) 1.30%(c) 1.32%(c)
Ratio of net investment
income (loss) to
average net assets..... 0.92%(c) 1.11%(c) 1.61%(c)
Ratio of expenses to
average net assets*.... 1.54%(c) 1.45%(c) 1.47%(c)
Portfolio turnover...... 81.62% 76.47% 44.68%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
See notes to financial statements.
162
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Equity Income Fund
--------------------------------------------------------------------------------------------------
Six Months Ended November 30, 1998 Eleven Months Ended May 31, 1998
----------------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 18.78 $ 18.68 $ 18.69 $ 19.20 $ 19.14 $19.23 $ 19.13
------- ------- -------- -------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. 0.13 0.06 0.14 0.25 0.11 0.11 0.29
Net realized and
unrealized gains
(losses) from
investments............ (0.06) (0.05) (0.05) 2.72 2.71 2.72 2.70
------- ------- -------- -------- ------- ------ --------
Total from Investment
Activities............. 0.07 0.01 0.09 2.97 2.82 2.83 2.99
------- ------- -------- -------- ------- ------ --------
Distributions
Net investment income... (0.13) (0.08) (0.15) (0.21) (0.10) (0.09) (0.25)
Net realized gains...... -- -- -- (3.18) (3.18) (3.18) (3.18)
------- ------- -------- -------- ------- ------ --------
Total Distributions..... (0.13) (0.08) (0.15) (3.39) (3.28) (3.27) (3.43)
------- ------- -------- -------- ------- ------ --------
Net Asset Value, End of
Period.................. $ 18.72 $ 18.61 $ 18.63 $ 18.78 $ 18.68 $18.79 $ 18.69
======= ======= ======== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ 0.43%(a) 0.00%(a) 0.56%(a) 17.08%(a) 16.28%(a) 16.22%(a) 17.31%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $91,557 $25,428 $254,248 $104,503 $27,767 $1,094 $281,395
Ratio of expenses to
average net assets...... 1.57%(b) 2.32%(b) 1.32%(b) 1.58%(b) 2.33%(b) 2.33%(b) 1.33%(b)
Ratio of net investment
income (loss) to average
net assets.............. 1.38%(b) 0.63%(b) 1.63%(b) 1.39%(b) 0.64%(b) 0.63%(b) 1.65%(b)
Portfolio turnover (c)... 32.81% 32.81% 32.81% 18.62% 18.62% 18.62% 18.62%
</TABLE>
- -------
(a) Not annualized.
(b) Annualized.
(c) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
163
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Equity Income Fund
---------------------------------------------------------------------------------------------
Year Ended June 30, 1997 Year Ended June 30, 1996
---------------------------------------------- ----------------------------------------------
Investor A Investor B Investor C Institutional Investor A Investor B Investor C Institutional
---------- ---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period... $ 17.31 $ 17.27 $17.36 $ 17.30 $ 14.49 $ 14.47 $14.54 $ 14.49
------- ------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)............... 0.29 0.16 0.15 0.34 0.30 0.19 0.19 0.34
Net realized and
unrealized gains
(losses) from
investments.......... 3.57 3.57 3.58 3.51 3.27 3.25 3.27 3.26
------- ------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities........... 3.86 3.73 3.73 3.85 3.57 3.44 3.46 3.60
------- ------- ------ -------- ------- ------- ------ --------
Distributions
Net investment income. (0.28) (0.17) (0.17) (0.33) (0.30) (0.19) (0.19) (0.34)
Net realized gains.... (1.69) (1.69) (1.69) (1.69) (0.45) (0.45) (0.45) (0.45)
------- ------- ------ -------- ------- ------- ------ --------
Total Distributions... (1.97) (1.86) (1.86) (2.02) (0.75) (0.64) (0.64) (0.79)
------- ------- ------ -------- ------- ------- ------ --------
Net Asset Value, End of
Period................ $ 19.20 $ 19.14 $19.23 $ 19.13 $ 17.31 $ 17.27 $17.36 $ 17.30
======= ======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges).............. 23.81% 22.96% 22.86% 23.80% 25.05% 24.11% 24.17% 25.30%
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $99,423 $21,038 $ 778 $315,878 $82,396 $12,590 $ 164 $337,318
Ratio of expenses to
average net assets.... 1.58% 2.33% 2.33% 1.33% 1.57% 2.32% 2.32% 1.32%
Ratio of net investment
income (loss) to
average net assets.... 1.62% 0.88% 0.88% 1.89% 1.86% 1.11% 1.11% 2.11%
Ratio of expenses to
average net assets*... (a) (a) (a) (a) 1.57% 2.32% 2.32% 1.32%
Portfolio turnover (a). 20.14% 20.14% 20.14% 20.14% 40.75% 40.75% 40.75% 40.75%
</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) No fees were waived during the period for this fund.
(b) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
164
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Equity Income Fund
--------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
-------------------------------------------------- -----------------------------------------
Investor A Investor B Investor C (b) Institutional Investor A Investor B (c) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of
Period......... $ 13.50 $13.49 $13.38 $ 13.50 $ 14.69 $14.92 $ 14.69
------- ------ ------ -------- ------- ------ --------
Investment
Activities
Net investment
income (loss).. 0.36 0.26 0.11 0.39 0.37 0.13 0.39
Net realized and
unrealized
gains (losses)
from
investments.... 1.00 0.99 1.17 1.00 (0.56) (1.43) (0.56)
------- ------ ------ -------- ------- ------ --------
Total from
Investment
Activities..... 1.36 1.25 1.28 1.39 (0.19) (1.30) (0.17)
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment
income......... (0.36) (0.26) (0.11) (0.39) (0.37) (0.13) (0.39)
In excess of net
investment
income......... (0.01) (0.01) (0.01) (0.01) -- -- --
Net realized
gains.......... -- -- -- -- (0.24) -- (0.24)
In excess of net
realized gains. -- -- -- -- (0.39) -- (0.39)
------- ------ ------ -------- ------- ------ --------
Total
Distributions.. (0.37) (0.27) (0.12) (0.40) (1.00) (0.13) (1.02)
------- ------ ------ -------- ------- ------ --------
Net Asset Value,
End of Period.. $ 14.49 $14.47 $14.54 $ 14.49 $ 13.50 $13.49 $ 13.50
======= ====== ====== ======== ======= ====== ========
Total Return
(excludes sales
and redemption
charges)....... 10.32% 9.41% 9.71%(f) 10.55% (1.63)% (8.76)%(d) (1.53)%
Ratios/Supplementary
Data:
Net Assets at
end of period
(000).......... $71,063 $7,131 $ 25 $346,164 $76,108 $3,836 $355,538
Ratio of
expenses to
average
net assets..... 1.54% 2.32% 2.30%(e) 1.32% 1.40% 2.33%(e) 1.30%
Ratio of net
investment
income (loss)
to average net
assets......... 2.65% 1.86% 1.88%(e) 2.86% 2.56% 1.87%(e) 2.64%
Ratio of
expenses to
average
net assets*.... 1.57% 2.57% 2.55%(e) 1.32% 1.55% 2.59%(e) 1.30%
Portfolio
turnover (g)... 77.70% 77.70% 77.70% 77.70% 69.35% 69.35% 69.35%
<CAPTION>
Year Ended June 30, 1993
(a)
------------------------
Investor A Institutional
---------- -------------
<S> <C> <C>
Net Asset Value,
Beginning of
Period......... $ 13.14 $ 13.14
---------- -------------
Investment
Activities
Net investment
income (loss).. 0.45 0.45
Net realized and
unrealized
gains (losses)
from
investments.... 1.69 1.69
---------- -------------
Total from
Investment
Activities..... 2.14 2.14
---------- -------------
Distributions
Net investment
income......... (0.45) (0.45)
In excess of net
investment
income......... -- --
Net realized
gains.......... (0.14) (0.14)
In excess of net
realized gains. -- --
---------- -------------
Total
Distributions.. (0.59) (0.59)
---------- -------------
Net Asset Value,
End of Period.. $ 14.69 $ 14.69
========== =============
Total Return
(excludes sales
and redemption
charges)....... 16.71% 16.73%
Ratios/Supplementary
Data:
Net Assets at
end of period
(000).......... $50,000 $384,240
Ratio of
expenses to
average
net assets..... 1.29% 1.26%
Ratio of net
investment
income (loss)
to average net
assets......... 3.24% 3.28%
Ratio of
expenses to
average
net assets*.... 1.36% 1.28%
Portfolio
turnover (g)... 67.26% 67.26%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) On April 1, 1993 the shareholders of the Group exchanged their shares for
either the Group's Investor A shares or Institutional shares. For the year
ended June 30, 1993 the Financial Highlights ratios of expenses, ratios of
net investment income, total return and the per share investment activities
and distributions are presented on a basis whereby the Fund's net
investment income, expenses and distributions for the period July 1, 1992
through March 31, 1993 were allocated to each class of shares based upon
the relative net assets of each class of shares as of April 1, 1993 and the
results combined therewith the results of operations and distributions for
each applicable class for the period April 1, 1993 through June 30, 1993.
(b) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(c) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(d) Not annualized.
(e) Annualized.
(f) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(g) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
165
<PAGE>
Parkstone Funds
Board of Trustees
Robert D. Neary
Chairman
Retired Co-Chairman, Ernst & Young
Director:
Cold Metal Products, Inc.
Strategic Distribution, Inc.
Herbert R. Martens, Jr.
President
Executive Vice President,
National City Corporation
Chairman, President and Chief Executive
Officer, NatCity Investments, Inc.
Leigh Carter
Retired President and Chief Operating
Officer, B.F. Goodrich Company
Director:
Kirtland Capital Corporation
Morrison Products
TruSeal Technologies
John F. Durkott
President and Chief Operating Officer,
Kittle's Home Furnishings Center, Inc.
Robert J. Farling
Retired Chairman, President and Chief
Executive Officer, Centerior Energy
Richard W. Furst, Dean
Professor of Finance and Dean
Carol Martin Gatton College of Business
and Economics, University of Kentucky
Director:
Foam Design, Inc.
The Seed Corporation
Gerald L. Gherlein
Executive Vice President and General
Counsel, Eaton Corporation
Trustee:
WVIZ Educational Television
J. William Pullen
President and Chief Executive Officer,
Whayne Supply Company
The Parkstone Trustees also serve as the Trustees of the Armada Funds and
Parkstone Advantage Funds.
[LOGO OF PARKSTONE MUTUAL FUNDS APPEARS HERE]
<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(R) 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 [LOGO OF PARKSTONE MUTUAL
FUNDS APPEARS HERE]
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
Money Market Funds
Parkstone Prime Obligations Fund
Parkstone U.S. Government Obligations Fund
Parkstone Tax-Free Fund
Parkstone Treasury Fund
----------------
BULK RATE
U.S. POSTAGE
PAID
CLEVELAND, OH
PERMIT NO. 1535
----------------
1/99
