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Parkstone
FUNDS
[ARTWORK APPEARS HERE]
May 31, 1999
ANNUAL REPORT
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The Parkstone Group of Funds
Table of Contents
May 31, 1999
<TABLE>
<S> <C>
A Message From The Chairman................................................. 2
A Message From Your Investment Adviser...................................... 4
Portfolio Performance Overview.............................................. 6
Report of Independent Accountants........................................... 35
Statements of Assets and Liabilities........................................ 36
Statements of Operations.................................................... 41
Statements of Changes in Net Assets......................................... 46
Statements of Cash Flows.................................................... 55
Schedules of Portfolio Investments.......................................... 58
Financial Highlights........................................................ 107
Notes to Financial Statements............................................... 152
</TABLE>
1
<PAGE>
The Parkstone Group of Funds
A Message From The Chairman
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
Dear Shareholder:
The past year was a time of transition for The Parkstone Group of Funds. As
previously reported, due to the merger of National City and First of America,
the investment adviser to the Funds was renamed National City Investment
Management Company ("IMC"), and is now composed of many talented people from
both companies.
Although the Funds have experienced outflows during the past year, much of it
is directly attributable to assets being transferred to the IMC managed Armada
Funds. I am pleased to note that the rate of outflows has slowed significantly
in the last five months.
Investment Performance Leadership
Despite a rather volatile environment in the financial markets during the 12
months ended May 31, 1999, it is a pleasure to report to you that the year was
one of solid performance for many of the Parkstone Mutual Funds. Especially
noteworthy has been the recognition given to the following Parkstone Funds by
industry rating services and publications:
. Parkstone Large Capitalization Fund (Institutional Shares) was recognized by
Morningstar+ for excellent performance with five stars for the period ended
March 31, 1999, and for the month ended May 31, 1999.
. Parkstone Large Capitalization Fund (Institutional Shares) and the National
City Investment Management Large Cap Equity Team were featured in the
Investor's Business Daily on March 29, 1999. Quoting from the article "The
Parkstone Large Capitalization Fund, with $458 million in assets, carries an
A+ performance rating from IBD, as its total return of 119% in the 36 months
ended February 28 beat 99% of all funds."
. Parkstone U.S. Government Income Fund (Institutional Shares) was recognized
by Morningstar+ with five stars for the quarter ended March 31, 1999, and
for the month ended May 31, 1999.
. Parkstone Limited Maturity Bond Fund and Parkstone Bond Fund (Institutional
Shares) were awarded an overall four-star rating by Morningstar+ for the
quarter ended March 31, 1999.
These examples of recognition reinforce and validate the investment management
philosophy and process employed IMC.
In closing . . .
The accompanying report contains each Fund's audited financial statements, its
portfolio of investments and a detailed discussion of its performance during
the 12 months ended May 31, 1999. Also, you will find a commentary from the
investment adviser that includes an economic outlook for the coming months and
a discussion of why the investment adviser believes they will be strong ones
for the financial markets.
As always, if you have questions or require assistance, please call your
account representative or the Parkstone Group of Funds Investor Services line
at 1-800-451-8377, who are available from 8:00 a.m. to 8:00 p.m. Eastern
Standard Time for your convenience. Or, if you would like to know more about
the Armada Funds, please call 1-800-622-FUND (3863).
2
<PAGE>
The Parkstone Group of Funds
A Message From The Chairman, continued
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. .
Finally, we thank you for your continued confidence in us. We look forward to
providing you with investment management and service to meet your needs now and
in the year ahead.
Sincerely,
/s/ Robert D. Neary
Robert D. Neary
Chairman
Parkstone Group of Funds
Parkstone
FUNDS
3
<PAGE>
The Parkstone Group of Funds
A Message From Your Investment Adviser
Economic Overview
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
Dear Shareholder:
As the past fiscal year came to a close, the U.S. economy continued to act as
if it were in the early stages of an economic recovery rather than completing
the 98th consecutive month of an expansion. After posting a 4.3% gain for
calendar year 1998, the highest rate since 1984, gross domestic product (GDP)
grew by another 4.3% (annualized) in the first quarter of 1999. Encouraged by
low unemployment and large gains in real wages, consumer spending was brisk
throughout the past 12 months, with housing and auto sales particularly strong.
By the end of May, even the moribund manufacturing sector reversed its decline,
as increasing demand, coupled with a relative lack of inventory, pushed
manufacturing output to its fastest growth in over two years.
Large-cap growth stocks continued to enjoy tremendous gains throughout the
year. Their march was interrupted only briefly--though dramatically--during the
third quarter of 1998 by global economic woes that took their toll on all but
the Treasury markets.
The rest of the equity markets did not fare nearly as well. The quest for
liquidity and predictable earnings growth led investors to treat smaller
domestic stocks, as well as international equities, with caution. How wide was
the disparity in returns? The S&P 500 Composite Index, a leading large-cap
indicator, returned a total of 21.05% over the past 12 months. Meanwhile, the
Russell 2000 Index of small-cap stocks lost 2.69% of its value. Even within the
large-cap segment of the market, gains were concentrated in the technology-
heavy growth sector. The S&P 500/BARRA Growth Index returned 28.15%, more than
double the S&P 500/BARRA Value Index.
These inequalities began to reverse themselves only near the end of the
reporting period, as attractive valuations and signs of a genuine recovery in
Asia and Latin America led to renewed interest in small-cap and value stocks.
Huge price gains, especially in energy, basic materials and other cyclical
sectors, helped the S&P BARRA Value Index easily outperform S&P BARRA Growth
during April and May. In April alone, BARRA Value returned 8.62% versus -0.19%
for BARRA Growth Index. The broadening of the market helped the Russell 2000
Index leap 12.28% for the three months ending May 31.
International stocks posted less than stellar gains in U.S. dollars over the
past 12 months, although results could have been much worse given the economic
and monetary problems that plagued many Asian and Latin American countries. The
Morgan Stanley EAFE (Europe, Australasia, and Far East) Equity Index, a leading
international benchmark, returned 4.36% for the period. The European markets as
a whole posted a gain of 2.5% in local currencies, but the strong showing of
the dollar versus the euro sent returns after conversion into negative
territory. Asia performed better, with the Morgan Stanley Asia-Pacific All-
Country Index up 13.45% in local currencies. That return translated to 26.73%
in dollars, thanks largely to the recovery of the Japanese yen.
The fixed income markets faced a difficult 12 months. The Lehman Brothers
Aggregate Bond Index returned a disappointing 4.34%, yet this figure belied a
period of extreme volatility. During the third quarter of 1998, the global
"flight to quality" sent Treasury prices soaring and yields (which move in the
opposite direction) plummeting. At the same time, the "spread" sectors of the
bond market--corporate bonds, asset-backed securities and mortgage-backed-
securities-- suffered a liquidity crisis. This situation continued into the
fourth quarter. Long Treasury yields reached their lows of a generation, with
10-year notes yielding 4.15% and 30-year bonds at 4.70%.
As we entered 1999, the scenario began to reverse itself. The spread sectors
staged a dramatic recovery, due in no small part to an unexpectedly rapid
easing of Brazil's economic crisis. Brazil's recovery is, in many respects, the
arch example of how the developing markets have rebounded so quickly.
Recognizing an attractive risk/return tradeoff, private capital swiftly
returned to these countries, stabilizing their markets and contributing
4
<PAGE>
The Parkstone Group of Funds
A Message From Your Investment Adviser
Economic Overview, continued
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
to liquidity. These events, in turn, led to falling interest rates and a
subsequent improvement in their economies.
Continued evidence of extremely strong domestic growth and the consequent
rekindling of inflation fears sent Treasury yields rising throughout the first
five months of 1999, firmly establishing a bear market for bonds. Interest
rates rose across the yield curve, hitting shorter-term maturities the hardest.
Looking ahead, our outlook for U.S. economic growth remains optimistic.
Consumer demand will likely continue to provide a solid, though lesser, boost
to economic activity. However, we believe future GDP growth may be closer to 3%
rather than the 4% to which we have become accustomed. Incremental gains in
manufacturing rely largely on a continuing global recovery, but we are
confident that many recent trouble spots in Asia and Latin America are taking
the painful, but necessary, steps to enhance their economic prospects.
The major issues facing Asia today are the sustainability of exports and the
viability of Japan's economy after its upcoming national election. Asia is
still relying on exports to build economic momentum and adequate reserve
balances. Japan is making a lot of the right promises but needs to make painful
job cuts to follow through on them. We are mindful of these risks but remain
constructive on Asia. Likewise, Latin America has made great progress in the
wake of Brazil's flotation of their currency, the Real, and the recovery in
commodity prices. In conclusion, global recovery is on more solid footing
today, propelled by emerging market recoveries after two difficult years.
At home, higher-than-expected growth data will likely translate into a
tightening of short-term interest rates by the Fed, but we believe that a
series of successive rate hikes is still highly unlikely and that the federal
funds rate won't increase by more than a total of 50 basis points. The
combination of strong growth, higher headline inflation and a less friendly Fed
likely means that Treasury yields will continue to rise in the short term.
However, assuming growth, and especially inflation, do not accelerate greatly,
we still believe that yields above 6 1/4% on 30-Year Treasury Bonds offer
investors long-term value. On the margin, we're more convinced than the Fed is
that the current pace of growth is noninflationary. Rather, it is the result of
tremendous leaps in productivity, thanks to technology enhancements and
Corporate America's strict cost-control measures.
As for the equity markets, the resurgence in small-cap and large-cap value
stocks is likely to continue. Valuations remain attractive, and investors
finally appear ready to let growth-stock earnings catch up a bit with their
current prices. As long as we see a continuation of global growth, and the
markets indicate that we will, earnings in the cyclical sectors are likely to
follow suit.
Sincerely,
/s/ Donald L. Ross
Donald L. Ross
Chief Investment Officer
National City Investment Management Co.
5
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Small Capitalization Fund+
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The past year proved to be a difficult one for the Fund and for small-cap
investors in general. The discrepancy between large-cap and small-cap
performance was the widest we had seen in some time, with the S&P 500 Index
outperforming the Russell 2000 Index by 23.74%. The economic crisis that
rippled through Asia and other emerging markets from late 1997 through 1998
sent investors fleeing from small-cap and mid-cap stocks to the highly liquid
large-cap and U.S. Treasury markets.
For the 12 months ended May 31, 1999, the Parkstone Small Capitalization Fund
produced a total return of -18.92% (before sales charges) for Investor A Shares
and -18.71% for Institutional Shares. During the same period, the Russell 2000
Index returned -2.69%, and the Russell 2000 Growth Index returned 3.93%. The
Fund assumed the latter benchmark on January 1, 1999, to reflect the
portfolio's bias toward growth stocks.
Internet-related companies, led by names like E*Trade (1.4% of the Fund's net
assets), CMGI (1.3%) and DoubleClick (0.6%), accounted for what good news the
small-cap sector offered. Unfortunately, our purchasing criteria--limiting us
to stocks with market capitalizations not exceeding $750 million--effectively
prohibited us from including these companies in the portfolio for most of the
year. Given the tremendous expansion of market values in every sector of the
market, our ceiling left us at the low end of the small-cap market where
stocks, were hit hardest.*
We remedied this situation in January by raising the Fund's market
capitalization ceiling to $3 billion. The Fund can own stocks with even greater
market capitalizations as long as they remain in the benchmark. In keeping with
IMC's overall investment philosophy, the management team also instituted some
risk controls that should reduce the portfolio's overall volatility. For
example, we set minimum and maximum sector weightings and by May 31, 1999 had
increased the number of stocks in the portfolio by approximately 40 percent
year-over-year.
With the easing of the global financial crisis, we believe that the Fund and
the small-cap market in general are poised for a rebound. Indeed, the market
already showed signs of broadening during April and May. Investors seemed
willing to assume some additional risk rather than continue paying a premium
for a handful of large-cap stocks. Small-cap prices should also benefit from
improved earnings-per-share growth expectations for the asset class as a whole.
+ 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 composition of the portfolio is subject to change.
6
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Small Capitalization Fund
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Rusell 2000 Russell 2000
Date Index Growth Index Investor A* Institutional
5/89 10,000 10,000 9,452 10,000
5/90 10,040 10,461 11,036 11,676
5/91 10,825 11,356 11,274 11,928
5/92 12,256 12,259 12,591 13,321
5/93 14,622 13,791 16,836 17,813
5/94 15,891 14,569 18,376 19,526
5/95 17,530 16,416 22,333 23,787
5/96 23,822 23,739 38,387 40,917
5/97 25,482 22,457 33,205 35,461
5/98 30,895 26,016 35,026 37,507
5/99 30,065 27,038 28,400 30,488
Investor A* Institutional
1 year -23.38% -18.71%
3 years -11.24% -9.34%
5 years 7.86% 9.32%
10 years 11.00% 11.79%
* Reflects the Maximum Sales Charge of 5.50%.
Value of a $10,000 Investment
Rusell 2000 Russell 2000
Date Index Growth Index Investor B*
2/4/94 10,000 10,000 10,000
5/94 9,387 9,149 8,864
5/95 10,355 10,309 10,745
5/96 14,072 14,908 18,799
5/97 15,053 14,103 16,203
5/98 18,250 16,337 17,093
5/99 17,760 16,979 13,917
Investor B**
1 year -23.07%
3 years -10.81%
5 years 8.32%
Inception (2/4/94) 6.41%
**Reflects the Maximum Applicable Contigent Deferred Sales Charge.
The Small Capitalization Fund's performance is compared to the Russell 2000
Stock Index and the Russell 2000 Growth Index. The Russell 2000 Stock Index
represents the performance of domestically traded common stocks of small to
mid-sized companies. The Russell 2000 Growth Index is comprised of securities
in the Russell 2000 Stock Index with a greater-than-average growth orientation.
The Fund has chosen the Russell 2000 Growth Index as its new benchmark. The
Russell Growth Index will better reflect the portfolio's current bias toward
growth stocks. 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 Small Capitalization Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results. The investment return and NAV will
fluctuate, so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
7
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Mid Capitalization Fund
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Growth was heavily concentrated in the large-cap sector of the market over
the past 12 months. Unfortunately, mid-cap and small-cap stocks suffered as
investors sought refuge from global volatility in a handful of the largest,
most dependable names. Internet stocks provided much of the mid-cap sector's
growth during this period. Frankly, the market showed no sensitivity to
earnings in valuing these companies. Investors seemed willing to pay nearly
anything for strong revenue growth despite generally poor earnings and, in many
cases, heavy losses. In this environment, our adherence to prudent valuation
and diversification guidelines accounted for the majority of the Fund's
underperformance.
For the 12 months ended May 31, 1999, the Parkstone Mid Capitalization Fund
returned 8.08% (before sales charges) for Investor A Shares and 8.20% for
Institutional Shares. For the same period, the S&P 400 MidCap Index and the
Russell MidCap Growth Index returned 11.93% and 15.64%, respectively. We
assumed the latter benchmark on January 1, 1999, because it better reflects the
aggressive-growth orientation of the portfolio.
We remain optimistic that the market will reward our emphasis on mid-cap
stocks that consistently deliver above-average earnings growth. The companies
in the portfolio typically hold dominant positions in their markets and also
boast excellent margins and return on equity. As of May 31, the Russell Mid-Cap
Growth Index paid 29 times expected 1999 earnings for 11% growth, while we were
paying an average of 36 times earnings for growth of 40%. Although the
portfolio's price-to-earnings ratio is relatively high, we believe that its
potential justifies these numbers.
Our focus on diversification should serve us well given the likelihood of
rising interest rates. Many of the high-flying internet companies, which
already began to weaken in May, may suffer further in this environment, because
higher rates should push down price-to-earnings ratios. We recently moved the
portfolio into sectors that have been general underperformers over the past few
years, because we believe that they will benefit from an improving global
economy. These investments include companies in the energy, capital goods and
industrial sectors.
The Fund's performance should be helped further by our decision to raise the
market capitalization limit on stocks we can purchase from $5 billion to $10
billion. This increase aligns the Fund with the market's own expanded
definition of mid-cap companies. At the very least, it gives us the freedom to
pursue a larger universe of stocks with above-average growth prospects.
8
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Mid Capitalization Fund
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
S&P Mid Cap Russell Mid Cap
Date 400 Index Growth Index Investor A* Institutional
5/89 10,000 10,000 9,452 10,000
5/90 11,445 11,495 10,930 11,565
5/91 13,661 13,508 11,550 12,220
5/92 15,825 14,767 13,284 14,054
5/93 18,767 17,072 15,248 16,111
5/94 19,523 18,135 16,162 17,112
5/95 22,161 20,986 17,502 18,576
5/96 28,469 27,962 25,159 26,749
5/97 33,638 31,029 24,812 26,352
5/98 43,698 38,457 30,121 32,022
5/99 48,913 44,473 32,553 34,647
Investor A* Institutional
1 year 2.14% 8.20%
3 years 6.94% 9.01%
5 years 13.73% 15.15%
10 years 12.52% 13.23%
*Reflects the Maximum Sales Charge of 5.50%.
Value of a $10,000 Investment
S&P Mid Cap Russell Mid Cap
Date 400 Index Growth Index Investor B*
2/4/94 10,000 10,000 10,000
5/94 9,382 9,437 8,947
5/95 10,649 10,921 9,670
5/96 13,681 14,551 14,044
5/97 16,165 16,148 13,883
5/98 20,999 20,013 16,897
5/99 23,505 23,144 18,296
Investor B**
1 year 2.57%
3 years 7.66%
5 years 14.20%
Inception (2/4/94) 12.03%
**Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The Mid Capitalization Fund's performance is being compared to the Standard &
Poor's Mid-Cap 400 Index and the Russell Midcap Growth Index. The Standard &
Poor's Mid-Cap 400 Index reflects the Fund's focus on the mid-cap sector of the
U.S. stock market. The Russell Midcap Growth Index is comprised of securities
in the Russell Midcap Index with greater than average price-to-book ratios and
higher forecasted growth values. The Fund has chosen the Russell MidCap Growth
Index as its new benchmark. The Russell MidCap Growth Index will better reflect
the portfolio's aggressive growth orientation. 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 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.
9
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Large Capitalization Fund
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Large-cap stocks again reaped most of the stock market's gains over the past
12 months, and the Fund performed strongly over this period. For the year ended
May 31, 1999, the Parkstone Large Capitalization Fund produced a total return
of 23.42% (before sales charges) for Investor A Shares and 23.67% for
Institutional Shares. During the same period, the Fund's benchmark, the S&P
500/BARRA Growth Index, returned 28.15%.
In particular, we profited from an overweighting in the technology,
communications and consumer cyclical sectors. Such holdings as Cisco Systems
(4.2% of the Fund's net assets) and EMC Corp. (1.9%), more than doubled in
value, while MCI WorldCom (2.6%), Time-Warner (2.2%), Home Depot (2.1%), Wal-
Mart (1.7%), Sun Microsystems (1.5%) and AirTouch (1.1%) also posted excellent
returns.*
An underweighting in basic materials served us well for most of the year, but
we gave back some gains when that sector rebounded in April. A similar story
unfolded in the energy sector, where we were underweighted or market neutral
through April. We increased our energy exposure in May.
Our underperformance relative to the S&P 500/BARRA Growth Index can be
attributed to the outstanding performance of a handful of companies at the high
end of its market capitalization range. The market-weighted nature of the
benchmark means that such companies had the most impact on its returns.
Microsoft and General Electric by themselves account for a combined 13% of S&P
BARRA Growth Index's market capitalization. The Fund owns both stocks, but we
held our percentage weighting in these companies to approximately half that of
the benchmark, due, in part, to our commitment to managing risk.
As long as inflation remains in check, we believe that the Fund will continue
to benefit from the strong earnings growth of our holdings. For example, Cisco
Systems (4.2%), as well as Lucent Technologies (3.3%), another holding, should
thrive as the Internet's infrastructure demands increase. In addition,
improving supply and demand balances in paper and energy are likely to
translate into improved earnings. That belief prompted us to overweight the
portfolio in these sectors at year-end, adding such companies as Schlumberger
Ltd. (1.0%), International Paper (1.0%) and Burlington Resources (1.1%).*
* The composition of the portfolio is subject to change.
10
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Large Capitalization Fund
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
S&P 500 Stock S&P BARRA Growth Index Investor A Investor B
2/1/96 10,000 10,000 9,452 10,000
5/96 10,607 10,621 10,243 10,319
5/97 13,729 14,159 12,629 12,750
5/98 17,938 18,710 16,803 17,107
5/99 21,710 23,977 20,738 21,136
Investor A* Investor B**
1 year 16.64% 17.38%
3 years 24.14% 24.94%
Inception (2/1/96) 24.50% 25.19%
*Reflects the Maximum Sales Charge of 5.50%.
**Reflects the Maximum Applicable Contingent Deferred Sales Charge.
Value of a $10,000 Investment
Institutional S&P 500 Stock Index S&P BARRA Growth Index
12/28/95 10,000 10,000 10,000
5/96 11,221 10,967 11,027
5/97 13,859 14,196 14,700
5/98 18,483 18,547 19,425
5/99 22,859 22,448 24,893
Institutional
1 year 23.67%
3 years 26.77%
Inception (12/28/95) 27.30%
The Large Capitalization Fund's performance is compared to the Standard &
Poor's 500 Stock Index and the Standard & Poor's BARRA Growth Index. The
Standard & Poor's 500 Stock Index represents the performance of the U.S. stock
market as a whole. The Standard & Poor's BARRA Growth Index is comprised of
securities in the Standard & Poor's 500 Stock Index that have a higher than
average price-to-book ratio. 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 Large Capitalization
Fund reflects the deduction of fees for these value-added services. Past
performance is not predictive of future results. The investment return and NAV
will fluctuate, so that an investor's shares, when redeemed, may be worth more
or less than the original cost.
11
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
International Discovery Fund+
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
On December 1, 1998, IMC assumed the management of the Fund from Gulfstream
Global Investors Ltd. In the process, we instituted a number of changes that
better reflect IMC's own investment philosophy. We moved the Fund's emphasis
away from mid-capitalization growth stocks to a large-capitalization,
diversified style, imposed time-tested risk control disciplines and shifted the
portfolio's primary focus to country allocation over individual stock
selection. We believe that it is not enough to search the world for good
companies; a country's economic environment must also be conducive to the
creation of wealth.
For the 12 months ended May 31, 1999, the Parkstone International Discovery
Fund produced a total return of -5.20% (before sales charges) for Investor A
Shares and -4.94% for Institutional Shares. Over the same period, the Fund's
benchmark, the Morgan Stanley Europe, Australasia and Far East (EAFE) Index,
returned a total of 4.36%.
Prior to December, investments in emerging markets and in stocks with lower
liquidity detracted from performance. The Fund lagged the EAFE Index by 7.27%
during this period. We closed that gap over the remaining six months, trailing
the benchmark by 1.98%. Still, our bias toward companies with strong and stable
competitive advantages was not rewarded as we had hoped. As the world economy
began showing signs of recovery, investors balked at paying a premium for high-
quality stocks.
Looking ahead, we believe that investors will return in increasing numbers to
the best-managed, most profitable companies as the year progresses. We find the
Hong Kong and Singapore markets attractively valued after impressive returns
year-to-date. Economic conditions are improving as current account balances
have turned positive. These surpluses have allowed central banks to ease
interest rates without causing currency devaluations and permitted governments
to finance fiscal stimulus programs. We believe that the improvement in
economic conditions needs to be followed up by reforms in order for wealth
creation to continue, and we are cautiously optimistic that such reforms will
take place.
Likewise, certain European markets are attractive. The accession rates for
adopting the euro have left some countries with a competitive advantage over
others. Likewise, some countries are simply more sound fiscally. We believe
that these imbalances will have a persistent effect on the differences in
economic growth rates within the region. In particular, it is our opinion that
markets such as France and Ireland are poised to enjoy stronger growth, while
Germany and Italy may suffer.
Japan is in the early stages of structural reform. However, the pace and
timing of reform may lead to episodes of disappointment as earnings struggle to
emerge from the doldrums. Therefore, we limited our holdings in Japan as of May
31, 1999, to 16.4% of the portfolio, a weighting that is 6.7% below the Fund's
benchmark.*
+ International investing is subject to certain risk factors such as currency
exchange-rate volatility, possible political, social or economic instability,
foreign taxation and/or differences in accounting and other financial
standards.
* The composition of the portfolio is subject to change.
12
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
International Discovery Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Institutional Investor A Morgan Stanley EAFE Index
------------- ---------- -------------------------
12/31/92 10,000 9,452 10,000
5/93 11,920 11,238 12,520
5/94 13,248 12,453 14,219
5/95 12,864 12,071 14,921
5/96 14,779 13,843 16,513
5/97 16,748 15,656 17,758
5/98 18,353 17,119 19,731
5/99 17,446 16,228 20,592
Investor A* Institutional
----------- -------------
1 year -10.41% -4.94%
3 years 3.48% 5.69%
5 years 4.26% 5.66%
Inception (12/29/92) 7.83% 9.06%
*Reflects the Maximum Sales Charge of 5.50%.
Value of a $10,000 Investment
Investor B Morgan Stanley EAFE Index
---------- -------------------------
2/4/94 10,000 10,000
5/94 8,861 9,891
5/95 8,524 10,378
5/96 9,766 11,486
5/97 11,090 12,352
5/98 12,168 13,724
5/99 11,693 14,323
Investor B*
-----------
1 year -10.33%
3 years 3.75%
5 years 4.53%
Inception (2/4/94) 2.90%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The International Discovery Fund's performance is compared to the Morgan
Stanley Capital International Europe, Australasia and Far East (EAFE) Index,
which represents the performance of the major stock markets in those regions.
The index is unmanaged and does not reflect the deduction of fees associated
with a mutual fund, such as investment management and fund accounting fees. The
performance of the Parkstone International Discovery Fund reflects the
deduction of fees for these value-added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
13
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Conservative Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Over the past 12 months, the Fund made the most of an equity exposure that
consistently hovered around a relatively modest 30% of total assets. Our
predominantly large-cap growth holdings served us well, as those stocks
continued to outperform every other segment of the equity market.
For the fiscal year ended May 31, 1999, the Parkstone Conservative Allocation
Fund produced a total return of 4.78% for Institutional Shares. During the same
period, the Lehman Brothers Intermediate Government/Corporate Bond Index
returned 4.78%, and the Salomon Brothers Broad Bond Index returned 4.32%. The
S&P 500 Composite Index, the Fund's equity benchmark, returned 21.05%.
During the third quarter of 1998, when none of the equity markets were spared
from global economic turmoil, the Fund's heavy exposure to Treasuries kept the
portfolio's volatility to a minimum. Unfortunately, our light equity allocation
hampered performance from the fourth quarter of 1998 onward as large-cap growth
stocks shrugged off Asia's economic troubles and came roaring back.
The Fund's above-index interest rate sensitivity worked well for our fixed-
income holdings during the fourth quarter of 1998, but maintaining this
position hindered performance when rates rose significantly during the first
quarter of 1999. We recouped a portion of our losses through an enlarged
allocation to higher-yielding spread (non-Treasury) securities, all sectors of
which outperformed equivalent-duration Treasury issues.
In keeping with the Fund's emphasis on low volatility and preservation of
capital, 70% of the portfolio remained in bonds at year-end. We allocated 23%
of assets to large-cap stocks and the remaining 7% to small-cap issues, which
showed signs of a resurgence during the last two months of the reporting
period.*
As previously announced, the Fund is scheduled to close in August 1999.
* The composition of the portfolio is subject to change.
14
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Conservative Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHART APPEARS HERE]
Value of a $10,000 Investment
Lehman Bros. Inc. Salomon Bros. S&P 500
Institutional Gov't/Corp. Bond Index Broad Index Stock Index
12/30/96 10,000 10,000 10,000 10,000
5/97 10,267 10,190 10,185 11,546
5/98 11,660 11,091 11,305 15,086
5/99 12,218 11,621 11,795 18,259
Institutional
1 year 4.78%
Inception (12/30/96) 8.64%
The Conservative Allocation Fund's performance is compared to the Standard &
Poor's 500 Stock Index, the Lehman Brothers Intermediate Government/Corporate
Bond Index and the Salomon Brothers Broad Index. The S&P 500 Index represents
the performance of the U.S. stock market as a whole. The Lehman Brothers
Intermediate Government/Corporate Bond Index is representative of intermediate-
term bonds. The Salomon Brothers Broad Index represents the performance of the
overall bond market. These indices are unmanaged and do not reflect the
deduction of expenses associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone
Conservative Allocation Fund reflects the deduction of fees for these value-
added services. Past performance is not predictive of future results. The
investment return and NAV will fluctuate, so that an investor's share, when
redeemed, may be worth more or less than the original cost.
15
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Balanced Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The management team's decision to keep the portfolio's equity holdings at the
low end of the permitted allocation range initially served us well as global
economic woes sent stock prices tumbling during the third quarter of 1998.
However, better-than-expected corporate earnings and the beginnings of a
turnaround in Asia during the fourth quarter helped the market rebound faster
than we had anticipated. As these events unfolded, the Fund's underexposure to
equities was mitigated somewhat by our preference for large-cap growth stocks.
These stocks again easily outperformed every other segment of the equity market
over the past 12 months.
For the fiscal year ended May 31, 1999, the Parkstone Balanced Allocation
Fund produced a total return of 2.47% (before sales charges) for Investor A
Shares and 2.73% for Institutional Shares. During the same period, the S&P 500
Index returned 21.05%, the Salomon Brothers Broad Index returned 4.34% and the
Lehman Brothers Aggregate Bond Index returned 4.34%.
With respect to the portfolio's fixed income holdings, weighting in
Treasuries benefited the Fund during the "flight to quality" that occurred in
late 1998. Although we began adding back high-quality spread (non-Treasury)
securities incrementally in January, this sector staged a rapid comeback that
cost us some of our earlier gains. By February, we had tilted our fixed-income
allocation firmly toward spread sectors, which we are convinced offer the best
risk/return profile for our investors.
Looking ahead, large-cap growth equities remain richly valued but stand to
benefit from their high degree of liquidity, low inflation and attractive
interest rates. Even if the Fed raises short-term rates, we believe that any
increase is likely to be modest. The current economic climate may prove even
more beneficial to small-cap stocks. This sector finally began to rally in
April and May thanks to improving investor sentiment and a brighter earnings
outlook. The management team is optimistic about the prospects for the small-
cap sector and by May 31 had more than doubled the position we held two months
earlier.
At fiscal year-end, approximately 40% of the Fund was invested in domestic
large-cap stocks, with 14% in domestic small-cap stocks and 6% in international
equities. That allocation places our equity holdings near the high end of their
allocation range. Bonds--in particular mortgage-backed securities--accounted
for the remaining 40% of holdings.*
* The composition of the portfolio is subject to change.
16
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Balanced Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
<TABLE>
<CAPTION>
Balanced Hybrid S&P 500 Lehman Brothers Salomon Brothers
Investor A Institutional Index Stock Index Aggregate Bond Index Broad Index
<S> <C> <C> <C> <C> <C> <C>
1/31/92 9,524 10,000 10,000 10,000 10,000 10,000
5/92 9,483 9,957 10,274 10,274 10,271 10,272
5/93 10,800 11,331 11,460 11,462 11,433 11,448
5/94 11,171 11,743 11,786 11,944 11,513 11,552
5/95 12,317 12,975 13,748 14,351 12,836 12,884
5/96 15,027 15,869 16,267 18,438 13,397 13,446
5/97 16,346 17,301 19,646 21,218 14,512 14,558
5/98 18,866 20,006 24,102 31,194 16,096 16,159
5/99 19,331 20,552 27,652 37,753 16,795 16,859
</TABLE>
Investor A* Institutional
----------- -------------
1 year -2.40% 2.73%
3 years 7.02% 9.00%
5 years 10.51% 11.84%
Inception (1/31/92) 9.41% 10.32%
*Reflects the Maximum Sales Charge of 4.75%.
Value of a $10,000 Investment
<TABLE>
<CAPTION>
S&P 500 Lehman Brothers Balanced Hybrid Salomon Brothers
Investor B Stock Index Aggregate Bond Index Index Broad Index
<S> <C> <C> <C> <C> <C>
2/4/94 10,000 10,000 10,000 10,000 10,000
5/94 9,026 9,847 9,674 9,779 9,517
5/95 9,894 11,826 10,785 11,407 10,615
5/96 12,195 15,194 11,257 13,497 11,078
5/97 13,281 19,667 12,194 16,301 11,994
5/98 15,361 25,706 13,525 19,998 13,312
5/99 15,829 31,112 14,112 22,944 13,889
</TABLE>
Investor B**
------------
1 year -3.17%
3 years 7.05%
5 years 10.75%
Inception (2/4/94) 9.02%
**Reflects Maximum Applicable Contingent Deferred Sales Charge.
The Balanced Fund's performance is compared to the Standard & Poor's 500 Stock
Index, the Salomon Brothers Broad Index, the Lehman Brothers Aggregate Bond
Index and a Balanced Hybrid Index. The Balanced Hybrid Index is comprised of
60% of the securities in the Standard & Poor's 500 Stock Index and 40% of the
securities in the Lehman Brothers Aggregate Bond Index. The Standard & Poor's
500 Stock Index is a broad measure of the stock market as a whole. The Salomon
Brothers Broad Index represents the performance of the overall bond market. The
Lehman Brothers Aggregate Bond Index is a market value weighted index that
tracks the performance of investment-grade debt issues with maturities of less
than a year. The indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Balanced Fund reflects the
deduction of fees for these value-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>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Aggressive Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Large-cap growth stocks again enjoyed most of the gains in the equity market
over the past 12 months. In this environment, the Fund's initially heavy
exposure to small-cap, mid-cap and international stocks detracted from
performance. Fortunately, an above-average weighting in Treasuries during the
first half of the reporting period cushioned some of the negative impact of our
early equity stance. An increased large-cap position as of January 1, 1999,
served us well during the first quarter of 1999, although remaining concerns
about global economic health kept our aggregate equity weighting to a
relatively modest 65% of assets through the end of the reporting period.
For the fiscal year ended May 31, 1999, the Parkstone Aggressive Allocation
Fund produced a total return of 0.81% for Institutional Shares. During the same
period, the S&P 500 Composite Index returned 21.05%, while the Salomon Brothers
Broad Bond Index returned 4.32%.
With respect to the portfolio's fixed-income holdings, the decision to
maintain an above-index interest rate sensitivity benefited the Fund during the
last half of 1998 and detracted from our performance during the first quarter
of 1999 as rates rose significantly. An enlarged allocation to higher-yielding
spread (non-Treasury) sectors from February forward helped offset the downside
of our long duration position. We have since moved the portfolio to a neutral
position in terms of interest-rate sensitivity.
Our belief that improving earnings and investor sentiment will finally jump-
start the small-cap market led us to increase the portfolio's overall equity
weighting to 70% at year-end. Specifically, 46% of the Fund was invested in
domestic large-cap stocks with 16% in small-caps and 8% in international
equities. The remaining 30% of the portfolio was invested in bonds.*
As previously announced, the Fund is scheduled to close in August 1999.
* The composition of the portfolio is subject to change.
18
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Aggressive Allocation Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHART APPEARS HERE]
Value of a $10,000 Investment
Institutional S&P 500 Index Salomon Bros. Broad Index
------------- ------------- -------------------------
12/30/96 $10,000 $10,000 $10,000
5/97 $10,244 $11,546 $10,185
5/98 $11,963 $15,086 $11,305
5/99 $12,060 $18,259 $11,795
Institutional
-------------
1 year 0.81%
Inception (12/30/96) 8.06%
The Aggressive Allocation Fund's performance is compared to the Standard &
Poor's 500 Stock Index and the Salomon Brothers Broad Index. The Standard &
Poor's 500 Stock Index is a broad measure of the stock market as a whole. The
Salomon Brothers Broad Index represents the performance of the overall bond
market. The indices are unmanaged and do not reflect the deduction of fees
associated with a mutual fund, such as investment management and fund
accounting fees. The performance of the Parkstone Aggressive Allocation Fund
reflects the deduction of fees for these value-added services. Past performance
is not predictive of future results. The investment return and NAV will
fluctuate, so that an investor's shares, when redeemed, may be worth more or
less than the original cost.
19
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Equity Income Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
During the latter half of 1998 and the first three months of 1999, the market
continued to reward large-cap growth managers far more richly than their value
counterparts. In fact, the S&P 500/BARRA Growth Index/1/ outperformed the S&P
500/BARRA Value Index by 15.06% for the entire fiscal year. Despite this
somewhat hostile environment, the management team remained true to the Fund's
value discipline. As a result, we were eventually rewarded for our patience.
The easing of the global economic crisis led to a broadening of the market in
April, and the Fund was strategically positioned to benefit as investors began
moving money into such undervalued sectors as industrial, energy and basic
materials.
For the year ended May 31, 1999, the Parkstone Equity Income Fund produced a
total return of 12.06% (before sales charges) for Investor A Shares and 12.40%
for Institutional Shares. Over the same period, the S&P 500 Index returned
21.05%, and the S&P 500/BARRA Value Index returned 13.09%. We adopted the
latter benchmark as the reporting period got underway in recognition of the
Fund's value-oriented approach to investing.
We were pleased with the Fund's overall performance, which trailed its
benchmark's only slightly. Superior stock selection served us well as many
long-time holdings showed substantial gains. Strong performers included
Intimate Brands (3.3% of the Fund's net assets), Enron (2.9%), United
Technologies Corp. (2.6%) and Alcoa (2.3%). From a sector standpoint, our
overweighting in health care and underweighting in financials versus the
benchmark contributed to performance, while an overweighting in consumer
noncyclicals detracted. Given the large-cap market's strong performance, our
low-risk profile also contributed to the Fund's modest lag.*
Looking ahead, we believe that the continuing recovery of the world economy
bodes well for value investors in general and for our portfolio in particular.
For example, our overweighting in the U.S. industrial and basic commodities
sectors should prove advantageous if a reduction in pricing pressure leads to
profit margin improvements. In addition, the Fund has significant holdings in
utilities and telecommunications, two traditional value sectors that still
appear overlooked by the market. In sum, the Fund is well positioned as the
market takes a more defensive posture and shifts its focus to undervalued
stocks with cyclical earnings.
/1/ The Standard & Poor's BARRA Growth Index is comprised of securities in the
Standard & Poor's 500 Stock Index that have a higher than average price-to-book
ratio. 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 composition of the portfolio is subject to change
20
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Equity Income Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
S&P 500 Stock S&P BARRA Stock Index Investor A Institutional
------------- --------------------- ---------- -------------
5/89 10,000 10,000 9,541 10,000
5/90 11,658 10,904 10,896 11,422
5/91 13,029 11,913 12,141 12,725
5/92 14,310 12,973 13,471 14,119
5/93 15,969 15,047 15,094 15,821
5/94 16,647 16,165 15,873 16,655
5/95 20,003 18,925 16,525 17,373
5/96 25,686 23,912 20,933 22,050
5/97 33,248 30,004 25,007 26,333
5/98 43,440 38,680 30,426 32,115
5/99 52,576 43,743 34,117 36,096
Investor A* Institutional
----------- -------------
1 year 5.92% 12.40%
3 years 15.46% 17,85%
5 years 15.22% 16.73%
10 years 12.95% 13.70%
*Reflects the Maximum Sales Charge of 5.50%
Value of a $10,000 Investment
S&P 500 Stock S&P BARRA Stock Index Investor B
------------- --------------------- ----------
2/4/94 10,000 10,000 10,000
5/94 9,579 9,594 9,042
5/95 11,510 11,231 9,352
5/96 14,780 14,191 11,967
5/97 19,131 17,806 14,364
5/98 24,995 22,955 17,511
5/99 30,252 25,960 19,698
Investor B**
------------
1 year 6.36%
3 years 16.05%
5 years 15.67%
Inception (2/4/94) 13.60%
**Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The Equity Income Fund's performance is compared to the Standard & Poor's 500
Stock Index and the Standard & Poor's BARRA Value Index. The Standard & Poor's
500 Stock Index represents the performance of the U.S. stock market as a whole.
The Standard & Poor's BARRA Value Index is comprised of securities in the
Standard & Poor's 500 Stock Index that have a lower-than-average price-to-book
ratio. 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 Equity Income Fund reflects
the deduction of fees for these value-added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
21
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The past 12 months were a period of extreme volatility in the fixed income
markets. Overall, the management team was pleased with the performance of the
Fund through the end of 1998 although our results for the first five months of
1999 were less than expected. Our strategy was correct in anticipating that we
would benefit from an overweight in Treasuries going into the third quarter of
1998. A long duration position also contributed to our strong performance, at
least through the end of October.
For the year ended May 31, 1999, the Parkstone Bond Fund produced a total
return of 2.55% (before sales charges) for Investor A Shares and 2.70% for
Institutional Shares. During the same period, the Salomon Brothers Broad Bond
Index returned 4.32% while the Lehman Aggregate Bond Index returned 4.34%.
These two indices are similar in composition. We adopted the latter benchmark
during the year mainly to bring more consistency to the group of indices
against which we measure IMC managed fixed income funds.
The management team began increasing holdings in corporate and mortgage-
backed issues in January, but we approached these moves cautiously. With Brazil
facing economic difficulties and Asia and Russia fresh in our minds, we did not
anticipate that the markets would take the latest crisis in stride. We
continued to increase holdings in these sectors through February, a position
the fund retained to the end of the reporting period.
The Fund currently remains overweighted in spread sectors, slightly favoring
mortgages to corporate bonds. Yields in the corporate market are attractive,
but we prefer to remain defensive in this sector given the current fever for
mergers and acquisitions. AT&T's recent bid to acquire MediaOne, and the amount
of debt it was willing to assume to clinch the deal, points to the event risk
that is part of today's corporate debt market.
As of May 31st, 12% of the Fund's net assets were invested in U.S. Treasury
securities, 44% in mortgage-backed securities, 25% in corporate bonds, and 19%
in asset-backed securities. As of the same date, the average maturity of the
portfolio's holdings was 9.03 years with an average credit quality of triple-
A.*
* The composition of the Portfolio is subject to change.
22
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Salomon Brothers Lehman Brothers
Broad Index Aggregate Bond Index Investor A Institutional
----------- -------------------- ---------- -------------
5/89 10,000 10,000 9,524 10,000
5/90 10,924 10,938 10,235 11,194
5/91 12,306 12,309 11,339 12,402
5/92 13,853 13,840 12,636 13,822
5/93 15,439 15,404 14,095 15,403
5/94 15,579 15,514 14,150 15,482
5/95 17,376 17,295 15,545 17,140
5/96 18,134 18,053 16,141 17,835
5/97 19,634 19,555 17,402 19,277
5/98 21,792 21,689 19,157 21,286
5/99 22,736 22,633 19,646 21,862
Investor A* Institutional
----------- -------------
1 year -2.34% 2.70%
3 years 5.05% 7.02%
5 years 5.74% 7.15%
10 years 6.99% 7.70%
*Reflects the Maximum Sales Charge of 4.75%
Value of a $10,000 Investment
Broad Index Lehman Bros. Aggregate
Investor B** Salomon Brothers Bond Index
------------ ---------------- ----------
2/4/94 10,000 10,000 10,000
5/94 9,070 9,517 9,506
5/95 9,973 10,615 10,598
5/96 10,395 11,078 11,062
5/97 11,249 11,994 11,982
5/98 12,408 13,312 13,290
5/99 12,818 13,889 13,867
Investor B**
------------
1 year -3.18%
3 years 5.06%
5 years 6.09%
Inception (2/4/94) 4.78%
** Reflects Maximum Applicable Contingent Deferred Sales Charge.
The Bond Fund's performance is compared to the Salomon Brothers Broad Index and
the Lehman Brothers Aggregate Bond Index. The Salomon Brothers Broad Index
represents the performance of the overall U.S. bond market. The Lehman Brothers
Aggregate Bond Index is comprised of the Lehman Brothers Government/Corporate
Index and the Lehman Brothers Mortgage-Backed Securities Index. 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 Bond Fund reflects the deduction of fees for these value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
23
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Limited Maturity Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Despite a difficult first half, the past fiscal year proved to be one of
strong performance for the Fund. In late 1998, a global economic crisis
triggered the "flight to quality" that sent Treasury prices soaring and led to
a lack of liquidity in every other sector of the bond market. The subsequent
collapse of some highly leveraged global hedge funds, most notably Long Term
Capital Management, only exacerbated the situation. As a result, the prices of
corporate bonds and other "spread" products, which normally trade somewhat in
tandem with the Treasury market, moved in the opposite direction. Despite this
chain of events, the management team remained committed to the Fund's
traditionally aggressive overweighting in spread sectors throughout the
reporting period. The portfolio was dominated, in particular, by corporate
bonds and asset-backed securities.
For the year ended May 31, 1999, the Parkstone Limited Maturity Bond Fund
produced a total return of 4.84% (before sales charges) for Investor A Shares
and 5.12% for Institutional Shares. During the same period, the Merrill Lynch
1-3 Year Government/Corporate Index returned 5.4%.
Inevitable underperformance during the latter half of 1998 was short-lived
and, as expected, never approached the lows that characterized the intermediate
segment of the spread market. During this period, the Fund's short duration
also helped cushion the blows felt by the corporate and asset-backed sectors.
We continued to increase the portfolio's weighting in spread sectors, pushing
it up to approximately 90% by early January. As a result, investors were
rewarded when the Fund benefited from the subsequent rally in these markets.
As of May 31st, 47% of the Fund's net assets were invested in corporate
bonds, 32% in asset-backed securities, 13% in mortgage-backed securities, and
8% in U.S. Treasury securities. As of the same date, the average maturity of
the portfolio's holdings was 1.69 years with an average credit quality of
double-A.*
* The composition of the Portfolio is subject to change.
24
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Limited Maturity Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Merrill Lynch 1-3 Yr. Gov't/Corp. Index Investor A Institutional
--------------------------------------- ---------- -------------
5/89 10,000 9,728 10,000
5/90 10,930 10,457 10,749
5/91 12,140 11,475 11,796
5/92 13,325 12,597 12,950
5/93 14,269 13,612 13,994
5/94 14,572 13,782 14,192
5/95 15,674 14,758 15,221
5/96 16,510 15,378 15,901
5/97 17,613 16,334 16,938
5/98 18,852 17,284 17,967
5/99 19,870 18,120 18,887
Investor A* Institutional
----------- -------------
1 year 1.94% 5.12%
3 years 4.63% 5.90%
5 years 5.04% 5.88%
10 years 6.12% 6.57%
* Reflects the Maximum Sales Charge of 2.75%
Value of a $10,000 Investment
Merrill Lynch 1-3 Yr. Gov't/Corp. Index Investor B**
--------------------------------------- ------------
2/4/94 10,000 10,000
5/94 9,865 9,303
5/95 10,611 9,900
5/96 11,177 10,355
5/97 11,924 11,027
5/98 12,762 11,701
5/99 13,452 12,371
Investor B**
------------
1 year -0.93%
3 years 3.93%
5 years 4.81%
Inception (2/4/94) 4.08%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The Limited Maturity Bond Fund's performance is compared to the Merrill Lynch
1-3-Year Government/Corporate Bond Index, which represents the total return of
short-term government and corporate bonds. The index is unmanaged and does not
reflect the deduction of fees associated with a mutual fund, such as investment
management and fund accounting fees. The performance of the Parkstone Limited
Maturity Bond Fund reflects the deduction of fees for these value-added
services. Past performance is not predictive of future results. The investment
return and NAV will fluctuate, so that an investor's shares, when redeemed, may
be worth more or less than the original cost.
25
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Intermediate Government Obligations Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
During the second half of 1998, the economic meltdown in Asia and Russia led
investors to flee domestic and international equity markets for the safety of
U.S. Treasuries. This "flight to quality" caused U.S. Treasury prices to
skyrocket, but it led to a lack of liquidity in virtually every other sector of
the bond market.
For the year ended May 31, 1999, the Parkstone Intermediate Government
Obligations Fund produced a total return of 3.83% (before sales charges) for
Investor A Shares and 4.01% for Institutional Shares. During the same period,
the Salomon Brothers 1-10 Year Treasury Index returned 5.04% while the Lehman
Intermediate Government Bond Index returned 4.98%. As we did with the Parkstone
Bond Fund, we switched to a Lehman benchmark during the year to bring more
consistency to the family of indices against which we measure IMC managed fixed
income funds.
The Fund initially benefited from the environment due to its heavy weighting
in Treasuries. The shorter maturities of its holdings also subjected the Fund
to less of the credit curve. Our portfolio was still overweighted in Treasuries
as the global crisis eased in early 1999, erasing some of our gains as Treasury
prices began their descent from stratospheric heights. At the same time,
liquidity returned to the spread sectors. Year-over-year, the portfolio
produced an acceptable return that belied one of the most difficult fixed
income markets of the past 20 years.
Looking ahead, the management team faces an environment of strong domestic
growth and tight labor markets characterized by the Fed's decision to change
its policy bias toward tightening interest rates. We still believe that long
bond yields will stay in a range between 5.5 and 6.5% and have moved the
portfolio to a neutral duration position.
As of May 31st, 78% of the Fund's net assets were invested in U.S. Treasury
and Agency securities and 22% in mortgage-backed securities. As of the same
date, the average maturity of the portfolio's holdings was 4.37 years.*
* The composition of the portfolio is subject to change.
26
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Intermediate Government Obligations Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Salomon Bros. 1-10 Yr. Lehman Bros. Int.
Treasury Index Gov't Index Investor A Institutional
-------------- ----------- ---------- -------------
5/89 10,000 10,000 9,524 10,000
5/90 10,896 10,903 10,223 10,733
5/91 12,179 12,201 11,329 11,895
5/92 13,565 13,586 12,503 13,128
5/93 14,941 14,949 13,622 14,305
5/94 15,135 15,133 13,673 14,381
5/95 16,494 16,508 14,821 15,608
5/96 17,246 17,256 15,293 16,144
5/97 18,452 18,484 16,224 17,176
5/98 20,047 20,070 17,438 18,507
5/99 21,058 21,070 18,106 19,248
Investor A* Institutional
----------- -------------
1 year -1.08% 4.01%
3 years 4.09% 6.04%
5 years 4.76% 6.00%
10 years 6.11% 6.77%
* Reflects the Maximum Sales Charge of 4.75%
Value of a $10,000 Investment
Salomon Bros. 1-10 Yr. Lehman Bros. Int.
Treasury Index Govt. Index Investor B**
-------------- ----------- ------------
2/4/94 10,000 10,000 10,000
5/94 9,666 9,663 9,189
5/95 10,534 10,540 9,896
5/96 11,014 11,018 10,258
5/97 11,785 11,803 10,912
5/98 12,803 12,815 11,766
5/99 13,448 13,453 12,314
Investor B**
------------
1 year -1.99%
3 years 4.09%
5 years 4.97%
Inception (2/4/94) 3.99%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The Intermediate Government Obligations Fund's performance is compared to the
Salomon Brothers 1-10-Year Treasury Index and the Lehman Brothers Intermediate
Government Index. The Salomon Brothers 1-10-Year Treasury Index represents the
performance of Treasury bonds in that maturity range. The Lehman Brothers
Intermediate Government Index represents the performance of U.S. Government
agencies and Treasuries within a 1-10 year maturity range. 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 Intermediate Government Obligations Fund reflects the
deduction of fees for these value-added services. Past performance is not
predictive of future results. The investment return and NAV will fluctuate, so
that an investor's shares, when redeemed, may be worth more or less than the
original cost.
27
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
U.S. Government Income Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Going into the third quarter of 1998, the Fund's overweighting in U.S.
Treasury securities helped performance when mortgage-backed securities were
hurt by the global "flight to quality". At the time, Treasuries accounted for
approximately 25% of the Fund's allocation and Ginnie Maes for another 15%.
Ginnie Maes outperformed both Fannie Maes and Freddie Macs during this period
for essentially the same reason that Treasuries outperformed the spread
sectors. Fannie Maes and Freddie Macs, with their implied U.S. Treasury
guarantees, did not offer the same level of safety as Ginnie Maes, which are
backed by the full faith and credit of the U.S. Treasury.*
For the year ended May 31, 1999, the Parkstone U.S. Government Income Fund
produced a total return of 4.46% (before sales charges) for Investor A Shares
and 4.73% for Institutional Shares. During the same period, the Salomon
Brothers 1-10 Year Treasury Index returned 5.04% while the Lehman Brothers
Mortgage Backed Securities Index returned 4.88%. We switched to the latter
benchmark during the year to reflect the Fund's emphasis on mortgage-backed
securities and to offer our investors a more accurate means of measuring
performance.
We were cautious in scaling back our Treasury holdings due to our ongoing
concerns about economic problems in Asia, Russia, and, in particular, Brazil.
This decision diminished some of our first half gains as a flood of private
capital stabilized Brazil more quickly than we had anticipated--triggering a
rebound in the spread sectors. On balance, though, we gained more from the
Fund's underweighting in mortgage-backed securities than we lost by delaying
our entry back into that market.
With no liquidity issues on the horizon, the Fund currently retains only a
slight exposure to Treasuries. In addition, we anticipate keeping the
portfolio's duration neutral relative to its benchmark, based on our belief
that long bond yields are unlikely to exceed 6.5 percent.
As of May 31st, 95% of the Fund's net assets were invested in mortgage-backed
securities, 3% in U.S. Agency securities, 1% in Treasuries, and 1% in asset-
backed securities. As of the same date, the average maturity of the portfolio's
holdings was 6.37 years.*
* The composition of the portfolio is subject to change.
28
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
U.S. Government Income Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Salomon Bros. 1-10 Yr. Lehman Bros. Int.
Treasury Index Gov't Index Investor A Institutional
-------------- ----------- ---------- -------------
11/12/92 10,000 10,000 9,524 10,000
5/93 10,567 10,920 9,938 10,435
5/94 10,704 10,910 10,117 10,641
5/95 11,666 12,141 10,929 11,514
5/96 12,197 12,750 11,545 12,192
5/97 13,050 13,938 12,331 13,042
5/98 14,178 15,285 13,389 14,196
5/99 14,893 16,032 13,986 14,868
Investor A* Institutional
----------- -------------
1 year -0.48% 4.73%
3 years 4.89% 6.84%
5 years 5.66% 6.92%
Inception (11/12/92) 5.26% 6.24%
* Reflects the Maximum Sales Charge of 4.75%
Value of a $10,000 Investment
Salomon Bros. 1-10 Yr. Lehman Bros. Int.
Treasury Index Govt. Index Investor B**
-------------- ----------- ------------
2/4/94 10,000 10,000 10,000
5/94 9,666 9,992 9,305
5/95 10,534 11,119 10,009
5/96 11,014 11,677 10,627
5/97 11,785 12,765 11,384
5/98 12,803 13,999 12,372
5/99 13,449 14,682 13,031
Investor B**
------------
1 year -1.17%
3 years 4.92%
5 years 5.90%
Inception (2/4/94) 5.10%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
The U.S. Government Income Fund's performance is compared to the Salomon
Brothers 1-10-Year Treasury Index and the Lehman Brothers Mortgage-Backed
Securities Index. The Salomon Brothers 1-10-Year Treasury Index represents the
performance of Treasury bonds in that maturity range. The Lehman Brothers
Mortgage-Backed Securities Index covers all fixed-rate securities backed by the
mortgage pools of all Government National Mortgage Associations. 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 U.S. Government Income Fund reflects the deduction of fees for
these value-added services. Past performance is not predictive of future
results. The investment return and NAV will fluctuate, so that an investor's
shares, when redeemed, may be worth more or less than the original cost.
29
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Municipal Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
At year-end, 47.7% of the Parkstone Municipal Bond Fund was invested in
general obligation, pre-refunded, and escrowed-to-maturity securities, with the
remainder in revenue issues. The Fund retained its historic emphasis on
diversification, with holdings in 25 states. At the same time, we limited our
exposure to New York, California and other states of lesser credit quality to
less than 5% of the portfolio. The average maturity of the securities in the
Fund was 6.81 years as of May 31, 1999.* Because of our concerns about the
potential effect of deregulation on electric utility companies, the Fund holds
only a handful of these issues. All are from dominant players in strong
markets.
For the year ended May 31, 1999, the Parkstone Municipal Bond Fund returned
3.29% (before sales charges) for Investor A Shares and 3.56% for Institutional
Shares. Throughout the year, at least 99% of the Parkstone Municipal Bond Fund
was invested in high quality, triple-A or double-A issues. Frankly, we didn't
feel that the small spread between credit grades that characterized the past 12
months warranted adding any extra risk to the portfolio.
Looking ahead, we expect to see some upward movement in interest rates during
the coming year, but we believe the portfolio is well positioned to withstand
any negative impact this may have. For example, near-record highs in supply
over the past 12 months allowed us to negotiate advantageous terms with a
number of underwriters, increasing our holdings in premium coupon and non-
callable bonds. These will help stabilize the portfolio in adverse market
conditions, as will our high concentration of triple-A rated securities.
We continue to keep a close watch on the political environment as well.
Robust state and local balance sheets have prompted a wave of proposed
election-year tax breaks. Since the economy is unlikely to get much stronger
than it is now, we are wary of the long-term effects such tax breaks might have
on municipal revenues.
* The composition of the portfolio is subject to change.
30
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Municipal Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Lehman Brothers
Municipal Bond Index Investor A Institutional
-------------------- ---------- -------------
5/89 10,000 9,524 10,000
5/90 10,773 10,019 10,520
5/91 11,814 10,841 11,383
5/92 12,976 11,639 12,221
5/93 14,529 12,762 13,402
5/94 14,888 13,093 13,770
5/95 16,243 14,032 14,793
5/96 16,986 14,438 15,243
5/97 18,395 15,235 16,133
5/98 20,121 16,168 17,180
5/99 21,062 16,700 17,791
Investor A* Institutional
----------- -------------
1 year -1.57% 3.56%
3 years 3.28% 5.29%
5 years 3.97% 5.26%
Inception (11/12/92) 5.27% 5.93%
* Reflects the Maximum Sales Charge of 4.75%
Value of a $10,000 Investment
Lehman Bros.
Municipal Bond Index Investor B**
-------------------- ------------
2/4/94 10,000 10,000
5/94 9,506 9,233
5/95 10,372 9,841
5/96 10,846 10,158
5/97 11,745 10,725
5/98 12,848 11,421
5/99 13,448 11,910
Investor B**
------------
1 year -2.40%
3 years 3.22%
5 years 4.16%
Inception (2/4/94) 3.34%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
Until recently the Fund's performance was compared to the Lehman Brothers
Mutual Fund Intermediate Index, due to the fact that the Lehman Brothers Mutual
Fund Intermediate Index has a short performance life, we have switched our
comparison back to the Lehman Brothers Municipal Bond Index, this will now
adequately compare us to a standardized benchmark. 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 their original cost.
31
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Michigan Municipal Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supply of new issues is a major factor influencing the performance of state-
specific funds, and supply in Michigan was plentiful over the past 12 months.
This environment allowed us to add new issues to the Parkstone Michigan
Municipal Bond Fund at a very reasonable price. Thanks to strong broker
relationships, we were also able to increase our weightings in non-callable
bonds and bonds with premium coupon payments.
For the year ended May 31, 1999, the Parkstone Michigan Municipal Bond Fund
returned 3.38% (before sales charges) for Investor A Shares and 3.54% for
Institutional Shares. Throughout the year, at least 90% of the Parkstone
Michigan Municipal Bond Fund was invested in high-quality, triple-A or double-A
issues. We didn't feel that the small spread between credit grades that
characterized the past 12 months warranted adding any extra risk to the
portfolio.
At year-end, 31.8% of the portfolio was invested in general obligation, pre-
refunded, and escrowed-to-maturity securities. Of the Fund's revenue bond
holdings, hospitals accounted for 14.3%, utilities 14.1% and agencies 6.0%. No
more than 5% of assets were invested in any single issue. The average maturity
of the securities in the Fund was 7.26 years.*
We continue to keep approximately 26.7% of assets in school district bonds,
focused mainly on districts that participate in the state's School Bond Loan
Fund. Since the State of Michigan has agreed to honor their debt in the
unlikely event that these school districts cannot meet their obligations, these
bonds essentially offer a slightly higher coupon for the same low risk as the
state's double-A-1 general obligations.
We don't expect to witness much change in the Michigan economy in the near
future. The state's fortunes remain tied in part to those of the auto industry,
which continues to perform strongly. In fact, its health has been a key factor
in the two upgrades the state's credit rating has received over the past two
years.
* The composition of the portfolio is subject to change.
32
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Michigan Municipal Bond Fund
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[CHARTS APPEAR HERE]
Value of a $10,000 Investment
Lehman Brothers
3-15 Year
Date Institutional Investor A* Municipal Index
- ---- ------------- ----------- ---------------
7/2/90 10,000 9,524 10,000
5/91 10,714 10,204
6/91 10,884
5/92 11,532 10,982
6/92 12,065
5/93 12,624 12,022
6/93 13,338
5/94 12,993 12,364
6/94 13,487
5/95 13,976 13,257
6/95 14,608
5/96 14,473 13,696
6/96 15,499
5/97 15,368 14,514
6/97 16,684
5/98 16,459 15,491 18,097
5/99 17,042 16,014 18,958
Investor A* Institutional
----------- -------------
1 year -1.53% 3.54%
3 years 3.67% 5.60%
5 years 4.29% 5.57%
Inception (7/2/90) 5.43% 6.16%
* Reflects the Maximum Sales Charge of 4.75%
Value of a $10,000 Investment
Lehman Brothers
3-15 Year
Date Investor B** Municipal Index
- ---- ------------ ---------------
2/4/94 10,000 10,000
5/94 9,192
6/94 9,566
5/95 9,820
6/95 10,405
5/96 10,189
6/96 11,040
5/97 10,824
6/97 11,884
5/98 11,588 12,891
5/99 12,084 13,505
Investor B**
------------
1 year -2.42%
3 years 3.62%
5 years 4.56%
Inception (2/4/94) 3.62%
** Reflects the Maximum Applicable Contingent Deferred Sales Charge.
Until recently the Fund's performance was compared to the Lehman Brothers
Mutual Fund Intermediate Index, due to the fact that the Lehman Brothers Mutual
Fund Intermediate Index has a short performance life, we have switched our
comparison back to the Shearson 3-15 Year Municipal Index which due to the
merger of Shearson and Lehman is now known as Lehman Brothers 3-15 Year
Municipal Index. 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 their original cost.
33
<PAGE>
The Parkstone Group of Funds
Portfolio Performance Overview
May 31, 1999
Money Market Funds
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Parkstone Money Market Funds posted solid results during the year while
offering investors a high degree of safety and liquidity. The Fund's managers
do not predict interest rates. Instead, we continually make purchases
throughout the yield curve, which is positively sloped most of the time, while
maintaining necessary liquidity.
For the 12 months ended May 31, 1999, the Parkstone Prime Obligations Fund
produced a total return of 4.76% for institutional shareholders and 4.66% for
investors A. At year-end, 77.0% of the Fund was allocated to commercial paper,
14.0% to floating notes, 4.0% to certificates of deposit, 3.0% to repurchase
agreements, and 2.0% to government agencies. The average weighted maturity of
the Fund was 50 days.*
For the 12 months ended May 31, 1999, the Parkstone U.S. Government
Obligations Fund produced a total return of 4.64% for institutional
shareholders and 4.53% for retail investor A. At year-end, 68% of the Fund was
allocated to discount notes, 15.0% to floating notes, 11.0% to repurchase
agreements and 6.0% to medium term notes. The average weighted maturity of the
fund was 52 days.*
For the 12 months ended May 31, 1999, the Parkstone Treasury Money Market
Fund produced a total return of 4.61% for institutional shareholders and 4.51%
for investors A. At year-end, 75.0% of the Fund was allocated to repurchase
agreements, 22.0% to Treasury notes and 3.0% to Treasury bills. The average
weighted maturity of the fund was 44 days.*
For the 12 months ended May 31, 1999, the Parkstone Tax-Free Money Market
Fund produced a total return of 2.66% for institutional shareholders and 2.56%
for investors A. The average weighted maturity of the Fund was 36 days.* Tax-
exempt money markets were characterized by two factors: a sharp decrease in the
supply of new issues and unprecedented inflows of cash (i.e., not much supply
and a lot of demand).
* The composition of the portfolio is subject to change.
An investment in the Funds is neither insured nor guaranteed by the U.S.
Government. There can be no assurance that the Funds will be able to maintain a
stable net asset value of $1.00 per share
This material is authorized for distribution to prospective investors only when
accompanied or preceded by a prospectus.
The Parkstone Group of Funds are a family of mutual funds that are distributed
by SEI Investments Distribution Co. (SIDC). For more complete information on
any of The Parkstone Group of Funds, including fees, expenses and sales
charges, please call 1-800-451-8377 for a free prospectus. Please read the
prospectus carefully before investing or sending money.
34
<PAGE>
Report of Independent Accountants
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
To the Shareholders and Trustees of the Parkstone Group of Funds
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of portfolio investments, and the related statements of
operations, cash flows and changes in net assets and financial highlights
present fairly, in all material respects, the financial position of the
Parkstone Group of Funds, (comprising, respectively, the Prime Obligations
Fund, U.S. Government Obligations Fund, Tax-Free Fund, Treasury Fund, Small
Capitalization Fund, Mid Capitalization Fund, Large Capitalization Fund,
International Discovery Fund, Limited Maturity Bond Fund, Intermediate
Government Obligations Fund, U.S. Government Income Fund, Bond Fund, Municipal
Bond Fund, Michigan Municipal Bond Fund, Conservative Allocation Fund, Balanced
Allocation Fund, Aggressive Allocation Fund, and Equity Income Fund) at May 31,
1999, the results of each of their operations for the year ended May 31, 1999,
the cash flows of the Small Capitalization Fund, Mid Capitalization Fund, Large
Capitalization Fund, Limited Maturity Bond Fund, Intermediate Government
Obligations Fund, U.S. Government Income Fund, Bond Fund, Conservative
Allocation Fund, Balanced Allocation Fund, Aggressive Allocation Fund, and
Equity Income Fund for the year ended May 31, 1999, the changes in each of
their net assets for the year ended May 31, 1999, the eleven months ended May
31, 1998 and the year ended June 30, 1997 and their financial highlights for
each of the periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Parkstone
Group of Funds' management; our responsibility is to express an opinion on
these financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at May 31, 1999 by
correspondence with the custodian and brokers provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Columbus, OH
July 22, 1999
35
<PAGE>
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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
amortized cost (Cost
$625,176; $109,787;
$109,893 and $68,237,
respectively).......... $ 625,176 $ 109,787 $ 109,893 $ 68,237
Repurchase agreements,
at cost................ 21,094 14,014 -- 210,803
------------ ------------ ------------ ------------
Total investments....... 646,270 123,801 109,893 279,040
Cash.................... 1 1 -- 1
Interest and dividends
receivable............. 889 267 962 767
Receivable for capital
shares issued.......... 4 -- -- --
Receivable for
investments sold....... -- -- 1,750 --
Prepaid expenses and
other.................. 8 2 4 12
------------ ------------ ------------ ------------
Total Assets............ 647,172 124,071 112,609 279,820
------------ ------------ ------------ ------------
Liabilities:
Dividends payable....... 2,414 459 265 946
Payable for capital
shares redeemed........ 87 -- -- --
Payable for investments
purchased.............. -- -- 1,500 --
Accrued expenses and
other payables:
Investment advisory
fees.................. 239 46 40 97
Administration fees.... 112 22 19 30
Distribution fees-
Investor A............ 2 -- -- 1
Distribution fees-
Investor B............ 1 -- -- --
Other.................. 76 37 28 51
------------ ------------ ------------ ------------
Total Liabilities....... 2,931 564 1,852 1,125
------------ ------------ ------------ ------------
Net Assets:
Paid-in capital......... 644,241 123,508 110,755 278,694
Undistibuted
(distributions in
excess of) net
investment income...... -- -- -- (1)
Accumulated
undistributed net
realized gains (losses)
on investment
transactions........... -- (1) 2 2
------------ ------------ ------------ ------------
Net Assets.............. $ 644,241 $ 123,507 $ 110,757 $ 278,695
============ ============ ============ ============
Net Assets
Investor A............. $ 14,924 $ 2,032 $ 621 $ 9,161
Investor B............. 764 -- -- --
Institutional.......... 628,553 121,475 110,136 269,534
------------ ------------ ------------ ------------
Total................ $ 644,241 $ 123,507 $ 110,757 $ 278,695
============ ============ ============ ============
Outstanding units of
beneficial interest
(shares)
Investor A............. 14,919 2,029 619 9,151
Investor B............. 764 -- -- --
Institutional.......... 628,552 121,444 110,130 269,541
------------ ------------ ------------ ------------
Total................ 644,235 123,473 110,749 278,692
============ ============ ============ ============
Net asset value
Investor A--offering
and redemption price
per share............. $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
Investor B--offering
price per share*...... $1.00 $ -- $ -- $ --
===== ===== ===== =====
Institutional--
offering and
redemption price per
share ................ $1.00 $1.00 $1.00 $1.00
===== ===== ===== =====
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
36
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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 $286,820;
$346,442; $313,548 and
$254,498,
respectively).......... $321,933 $436,851 $485,359 $299,394
Repurchase agreements,
at cost................ 29,000 30,266 5,660 --
-------- -------- -------- --------
Total investments....... 350,933 467,117 491,019 299,394
Cash.................... 1,414 -- -- --
Interest and dividends
receivable............. 107 143 268 920
Receivable for capital
shares issued.......... 70 32 33 1
Receivable for
investments sold....... 7,045 4,917 4,927 --
Tax reclaim receivable.. -- -- -- 342
Foreign currency (Cost
$0, $0, $0 and $23,
respectively).......... -- -- -- 23
Receivable for foreign
currency contracts..... -- -- -- 414
Net receivable for
variation margin on
futures contracts...... 390 -- -- --
Prepaid expenses and
other.................. 6 1 8 6
-------- -------- -------- --------
Total Assets............ 359,965 472,210 496,255 301,100
-------- -------- -------- --------
Liabilities:
Payable for return of
collateral received for
securities on loan..... 49,997 80,266 45,660 --
Payable for capital
shares redeemed........ 236 156 89 95
Payable for investments
purchased.............. 6,485 4,248 2,236 --
Accrued expenses and
other payables:
Investment advisory
fees.................. 286 361 336 334
Administration fees.... 54 68 79 53
Distribution fees--
Investor A............ 14 11 5 6
Distribution fees--
Investor B............ 18 16 13 7
Other.................. 187 117 89 323
-------- -------- -------- --------
Total Liabilities....... 57,277 85,243 48,507 818
-------- -------- -------- --------
Net Assets:
Paid-in capital......... 267,568 227,539 220,321 214,763
Undistibuted
(distributions in
excess of) net
investment income...... -- -- -- (481)
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 37,389 90,409 171,811 45,278
Undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... (2,269) 69,019 55,616 40,722
-------- -------- -------- --------
Net Assets.............. $302,688 $386,967 $447,748 $300,282
======== ======== ======== ========
Net Assets
Investor A............. $ 57,813 $ 50,605 $ 24,513 $ 24,914
Investor B............. 18,736 16,629 14,128 7,604
Institutional.......... 226,139 319,733 409,107 267,764
-------- -------- -------- --------
Total................ $302,688 $386,967 $447,748 $300,282
======== ======== ======== ========
Outstanding units of
beneficial interest
(shares)
Investor A............. 3,127 3,589 1,246 1,682
Investor B............. 1,054 1,266 735 535
Institutional.......... 11,973 22,401 20,653 17,812
-------- -------- -------- --------
Total................ 16,154 27,256 22,634 20,029
======== ======== ======== ========
Net asset value
Investor A--redemption
price per share....... $18.49 $14.10 $19.67 $14.81
====== ====== ====== ======
Investor B--offering
price per share*...... $17.78 $13.14 $19.21 $14.20
====== ====== ====== ======
Institutional--
offering and
redemption price for
share................. $18.89 $14.27 $19.81 $15.03
====== ====== ====== ======
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...... $19.57 $14.92 $20.81 $15.67
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
37
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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
$148,734; $145,600; $206,042
and $426,239 respectively)... $147,128 $144,170 $204,140 $417,561
Repurchase agreements, at
cost......................... 8,071 24,143 6,647 13,859
-------- -------- -------- --------
Total investments............. 155,199 168,313 210,787 431,420
Cash.......................... -- -- -- --
Interest and dividends
receivable................... 2,063 1,798 1,593 3,595
Receivable for capital shares
issued....................... 1 7 2 1
Receivable for investments
sold......................... -- 32 310 13,430
Prepaid expenses and other.... 6 8 9 8
-------- -------- -------- --------
Total Assets.................. 157,269 170,158 212,701 448,454
-------- -------- -------- --------
Liabilities:
Payable for return of
collateral received for
securities on loan........... 8,071 24,143 6,647 48,859
Dividends payable............. 705 627 981 1,812
Payable for capital shares
redeemed..................... 138 48 195 91
Payable for investments
purchased.................... -- -- -- 14,611
Accrued expenses and other
payables:
Investment advisory fees..... 75 93 84 247
Administration fees.......... 23 23 32 60
Distribution fees--Investor
A........................... 5 3 8 3
Distribution fees--Investor
B........................... 1 1 15 4
Other........................ 42 43 63 73
-------- -------- -------- --------
Total Liabilities............. 9,060 24,981 8,025 65,760
-------- -------- -------- --------
Net Assets:
Paid-in capital............... 158,819 157,792 212,626 393,584
Undistibuted (distributions in
excess of) net investment
income....................... 1 -- -- 2
Net unrealized appreciation
(depreciation) on
investments.................. (1,606) (1,430) (1,902) (8,678)
Accumulated undistributed net
realized gains (losses) on
investment transactions...... (9,005) (11,185) (6,048) (2,214)
-------- -------- -------- --------
Net Assets.................... $148,209 $145,177 $204,676 $382,694
======== ======== ======== ========
Net Assets
Investor A................... $ 24,246 $ 10,244 $ 38,190 $ 11,916
Investor B................... 826 1,255 16,373 4,548
Institutional................ 123,137 133,678 150,113 366,230
-------- -------- -------- --------
Total...................... $148,209 $145,177 $204,676 $382,694
======== ======== ======== ========
Outstanding units of
beneficial interest (shares)
Investor A................... 2,573 1,049 4,183 1,231
Investor B................... 88 129 1,798 469
Institutional................ 13,067 13,690 16,441 37,636
-------- -------- -------- --------
Total...................... 15,728 14,868 22,422 39,336
======== ======== ======== ========
Net asset value
Investor A--redemption price
per share................... $9.42 $9.77 $9.13 $9.68
===== ===== ===== =====
Investor B--offering price
per share*.................. $9.42 $9.74 $9.11 $9.69
===== ===== ===== =====
Institutional--offering and
redemption price per share.. $9.42 $9.76 $9.13 $9.73
===== ===== ===== =====
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............ $9.69 $10.26 $9.59 $10.16
===== ====== ===== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
38
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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 $101,827;
$212,214; $18,956 and
$179,906,
respectively).......... $ 104,267 $ 222,548 $ 19,653 $ 205,752
Repurchase agreements,
at cost................ -- -- 7,086 5,235
------------ ------------ ----------- ------------
Total investments....... 104,267 222,548 26,739 210,987
Cash.................... -- -- -- 120
Interest and dividends
receivable............. 1,721 2,626 177 859
Receivable for capital
shares issued.......... -- -- -- 24
Receivable for
investments sold....... -- -- 28 3,463
Tax reclaim receivable.. -- -- -- 22
Foreign currency (Cost
$0, $0, $0 and $1,
respectively).......... -- -- -- 1
Prepaid expenses and
other.................. 9 1 -- 3
------------ ------------ ----------- ------------
Total Assets............ 105,997 225,175 26,944 215,479
------------ ------------ ----------- ------------
Liabilities:
Payable for return of
collateral received for
securities on loan..... -- -- 7,086 15,235
Dividends payable....... 349 813 -- --
Payable for capital
shares redeemed........ 216 105 -- 68
Payable for investments
purchased.............. 1,007 -- -- 1,223
Accrued expenses and
other payables:
Investment advisory
fees.................. 53 113 13 138
Administration fees.... 12 25 3 35
Distribution fees--
Investor A............ 2 6 -- 3
Distribution fees--
Investor B............ -- 3 -- 5
Other.................. 35 52 17 86
------------ ------------ ----------- ------------
Total Liabilities....... 1,674 1,117 7,119 16,793
------------ ------------ ----------- ------------
Net Assets:
Paid-in capital......... 101,616 213,550 19,032 159,886
Undistributed
(distributions in
excess of) net
investment income...... (2) (19) 55 340
Net unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... 2,440 10,334 697 25,843
Undistributed net
realized gains (losses)
from investment and
foreign currency
transactions........... 269 193 41 12,617
------------ ------------ ----------- ------------
Net Assets.............. $ 104,323 $ 224,058 $ 19,825 $ 198,686
============ ============ =========== ============
Net Assets
Investor A............. $ 6,886 $ 28,305 $ -- $ 15,760
Investor B............. 491 3,217 -- 5,723
Institutional.......... 96,946 192,536 19,825 177,203
------------ ------------ ----------- ------------
Total................ $ 104,323 $ 224,058 $ 19,825 $ 198,686
============ ============ =========== ============
Outstanding units of
beneficial interest
(shares)
Investor A............. 663 2,595 -- 1,166
Investor B............. 47 295 -- 423
Institutional.......... 9,334 17,645 1,829 13,124
------------ ------------ ----------- ------------
Total................ 10,044 20,535 1,829 14,713
============ ============ =========== ============
Net asset value
Investor A--redemption
price per share....... $10.38 $10.91 $ -- $13.52
====== ====== ====== ======
Investor B--offering
price per share*...... $10.36 $10.92 $ -- $13.52
====== ====== ====== ======
Institutional--
offering and
redemption price per
share................. $10.39 $10.91 $10.84 $13.50
====== ====== ====== ======
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...... $10.90 $11.45 $ -- $14.19
====== ====== ====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
39
<PAGE>
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in
Thousands, except
Per Share Amounts)
Aggressive Equity
Allocation Income
Fund Fund
---------- --------
<S> <C> <C>
Assets:
Investments, at value (Cost $22,953 and $280,615,
respectively)............................................ $25,205 $366,017
Repurchase agreements, at cost............................ 3,599 12,423
------- --------
Total investments......................................... 28,804 378,440
Cash...................................................... 10 320
Interest and dividends receivable......................... 100 857
Receivable for capital shares issued...................... -- 4
Receivable for investments sold........................... 410 --
Tax reclaim receivable.................................... 6 --
Prepaid expenses and other................................ -- 8
------- --------
Total Assets.............................................. 29,330 379,629
------- --------
Liabilities:
Payable for return of collateral received for securities
on loan.................................................. 4,147 52,423
Payable for capital shares redeemed....................... -- 103
Accrued expenses and other payables:
Investment advisory fees................................. 20 306
Administration fees...................................... 4 57
Distribution fees-Investor A............................. -- 18
Distribution fees-Investor B............................. -- 21
Other.................................................... 31 113
------- --------
Total Liabilities......................................... 4,202 53,041
------- --------
Net Assets:
Paid-in capital........................................... 19,925 187,319
Undistibuted (distributions in excess of) net investment
income................................................... 43 444
Net unrealized appreciation (depreciation) from
investments and translation of assets and liabilities in
foreign currencies....................................... 2,252 85,402
Undistributed net realized gains (losses) from investment
and foreign currency transactions........................ 2,908 53,423
------- --------
Net Assets................................................ $25,128 $326,588
======= ========
Net Assets
Investor A............................................... $ -- $ 82,733
Investor B............................................... -- 22,456
Institutional............................................ 25,128 221,399
------- --------
Total.................................................. $25,128 $326,588
======= ========
Outstanding units of beneficial interest (shares)
Investor A............................................... -- 4,522
Investor B............................................... -- 1,238
Institutional............................................ 2,186 12,168
------- --------
Total.................................................. 2,186 17,928
======= ========
Net asset value
Investor A--redemption price per share................... $ -- $18.30
====== ======
Investor B--offering price per share*.................... $ -- $18.15
====== ======
Institutional--offeing and redemption price per share.... $ 11.50 $18.20
======= ======
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............................................... $ -- $19.37
====== ======
</TABLE>
- -------
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
40
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<TABLE>
<CAPTION>
(Amount in Thousands)
Prime U.S. Government
Obligations Obligations Tax-Free Treasury
Fund Fund Fund Fund
----------- --------------- -------- --------
<S> <C> <C> <C> <C>
Investment Income:
Interest income.................. $40,007 $13,111 $4,125 $21,509
Dividend income.................. 14 5 100 3
------- ------- ------ -------
Total Income..................... 40,021 13,116 4,225 21,512
------- ------- ------ -------
Expenses:
Investment advisory fees......... 3,000 986 508 1,657
Administration fees.............. 1,500 493 254 828
Distribution fees--Investor A.... 159 182 54 275
Distribution fees--Investor B.... 7 -- -- --
Custodian fees................... 55 25 17 37
Accounting fees.................. 145 53 34 79
Trustees' fees and expenses...... 15 5 2 9
Transfer agent fees.............. 124 64 33 72
Other............................ 206 64 32 126
------- ------- ------ -------
Total Expenses................... 5,211 1,872 934 3,083
Expenses voluntarily reduced..... (231) (155) (55) (570)
------- ------- ------ -------
Net Expenses..................... 4,980 1,717 879 2,513
------- ------- ------ -------
Net Investment Income............ 35,041 11,399 3,346 18,999
------- ------- ------ -------
Realized/Unrealized Gains
(Losses) on Investments:
Net realized gains (losses) from
investment transactions......... -- -- 3 24
------- ------- ------ -------
Change in net assets resulting
from operations................. $35,041 $11,399 $3,349 $19,023
======= ======= ====== =======
</TABLE>
See notes to financial statements.
41
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income......... $ 1,028 $ 568 $ 43 $ --
Dividend income......... 1,000 1,967 3,166 5,742
Securities lending
income................. 461 282 127 --
Foreign tax withholding. -- -- -- (483)
--------- --------- ------- --------
Total Income............ 2,489 2,817 3,336 5,259
--------- --------- ------- --------
Expenses:
Investment advisory
fees................... 4,620 4,990 3,460 4,475
Administration fees..... 924 998 865 768
Distribution fees--
Investor A............. 248 166 59 83
Distribution fees--
Investor B............. 287 199 127 102
Distribution fees--
Investor C*............ 31 6 1 2
Custodian fees.......... 34 38 36 293
Accounting fees......... 127 134 120 169
Trustees' fees and
expenses............... 13 11 6 8
Transfer agent fees..... 479 295 167 221
Other................... 103 109 124 95
--------- --------- ------- --------
Total Expenses.......... 6,866 6,946 4,965 6,216
--------- --------- ------- --------
Net Investment Income
(Loss)................. (4,377) (4,129) (1,629) (957)
--------- --------- ------- --------
Realized/Unrealized
Gains (Losses) on
Investments:
Net realized gains
(losses) from
investment and foreign
currency transactions.. (26) 134,749 70,480 55,634
Net change in unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies..... (109,493) (104,609) 22,143 (80,335)
--------- --------- ------- --------
Net realized/unrealized
gains (losses) from
investments and foreign
currencies............. (109,519) 30,140 92,623 (24,701)
--------- --------- ------- --------
Change in net assets
resulting from
operations............. $(113,896) $ 26,011 $90,994 $(25,658)
========= ========= ======= ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
42
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<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................ $11,558 $10,314 $15,014 $ 29,741
Dividend income................ 112 -- 161 554
Securities lending income...... 37 46 49 354
------- ------- ------- --------
Total Income................... 11,707 10,360 15,224 30,649
------- ------- ------- --------
Expenses:
Investment advisory fees....... 1,300 1,267 1,631 3,502
Administration fees............ 351 342 441 946
Distribution fees--Investor A.. 80 31 114 36
Distribution fees--Investor B.. 12 16 206 59
Distribution fees--Investor C*. 5 -- 1 1
Custodian fees................. 21 21 24 38
Accounting fees................ 66 76 99 133
Trustees' fees and expenses.... 3 3 4 8
Transfer agent fees............ 77 79 130 124
Other.......................... 66 57 75 121
------- ------- ------- --------
Total Expenses................. 1,981 1,892 2,725 4,968
Expenses voluntarily reduced... (416) (148) (742) (412)
------- ------- ------- --------
Net Expenses................... 1,565 1,744 1,983 4,556
------- ------- ------- --------
Net Investment Income.......... 10,142 8,616 13,241 26,093
------- ------- ------- --------
Realized/Unrealized Gains
(Losses) on Investments:
Net realized gains (losses)
from investment transactions.. 691 653 1,493 2,425
Net change in unrealized
appreciation (depreciation)
from investments.............. (1,757) (1,892) (4,469) (13,814)
------- ------- ------- --------
Net realized/unrealized gains
(losses) on investments....... (1,066) (1,239) (2,976) (11,389)
------- ------- ------- --------
Change in net assets resulting
from operations............... $ 9,076 $ 7,377 $10,265 $ 14,704
======= ======= ======= ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
43
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<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.................... $5,531 $11,758 $ 771 $ 7,302
Dividend income.................... 35 71 60 1,248
Securities lending income.......... -- -- 7 103
Foreign tax withholding............ -- -- -- (29)
------ ------- ----- --------
Total Income....................... 5,566 11,829 838 8,624
------ ------- ----- --------
Expenses:
Investment advisory fees........... 909 1,763 186 2,522
Administration fees................ 246 476 37 504
Distribution fees--Investor A...... 20 82 -- 45
Distribution fees--Investor B...... 6 35 -- 72
Distribution fees--Investor C*..... -- -- -- 2
Custodian fees..................... 10 15 1 73
Accounting fees.................... 61 95 12 102
Trustees' fees and expenses........ 3 4 -- 5
Transfer agent fees................ 31 78 8 124
Other.............................. 40 61 10 105
------ ------- ----- --------
Total Expenses..................... 1,326 2,609 254 3,554
Expenses voluntarily reduced....... (353) (683) (56) (630)
------ ------- ----- --------
Net Expenses....................... 973 1,926 198 2,924
------ ------- ----- --------
Net Investment Income.............. 4,593 9,903 640 5,700
------ ------- ----- --------
Realized/Unrealized Gains (Losses)
on Investments:
Net realized gains (losses) from
investment and foreign currency
transactions...................... 428 981 518 15,226
Net change in unrealized
appreciation (depreciation) from
investments and translation of
assets and liabilities in foreign
currencies........................ (438) (2,440) (330) (12,513)
------ ------- ----- --------
Net realized/unrealized gains
(losses) on investments and
foreign currencies................ (10) (1,459) 188 2,713
------ ------- ----- --------
Change in net assets resulting from
operations........................ $4,583 $ 8,444 $ 828 $ 8,413
====== ======= ===== ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
44
<PAGE>
Statements of Operations
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Income
Fund Fund
------------- -----------
<S> <C> <C>
Investment Income:
Interest income...................................... $ 542 $ 658
Dividend income...................................... 217 9,268
Securities lending income............................ 9 198
Foreign tax withholding.............................. (5) --
---------- -----------
Total Income......................................... 763 10,124
---------- -----------
Expenses:
Investment advisory fees............................. 295 3,577
Administration fees.................................. 59 715
Distribution fees--Investor A........................ -- 226
Distribution fees--Investor B........................ -- 247
Distribution fees--Investor C*....................... -- 3
Custodian fees....................................... 23 30
Accounting fees...................................... 30 103
Trustees' fees and expenses.......................... 1 6
Transfer agent fees.................................. 10 290
Other................................................ 16 87
---------- -----------
Total Expenses....................................... 434 5,284
Expenses voluntarily reduced......................... (44) --
---------- -----------
Net Expenses......................................... 390 5,284
---------- -----------
Net Investment Income................................ 373 4,840
---------- -----------
Realized/Unrealized Gains (Losses) on Investments:
Net realized gains (losses) from investment and
foreign currency transactions....................... 2,971 94,130
Net change in unrealized appreciation (depreciation)
from investments and translation of assets and
liabilities in foreign currencies................... (2,958) (61,914)
---------- -----------
Net realized/unrealized gains (losses) on investments
and foreign currencies.............................. 13 32,216
---------- -----------
Change in net assets resulting from operations....... $ 386 $ 37,056
========== ===========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
45
<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
--------------------------------------- -----------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 35,041 $ 40,253 $ 42,020 $ 11,399 $ 16,969 $ 20,287
Net realized gains
(losses) from
investment
transactions.......... -- -- 6 -- 7 (3)
---------- ---------- ---------- -------- -------- ----------
Change in net assets
resulting from
operations............. 35,041 40,253 42,026 11,399 16,976 20,284
---------- ---------- ---------- -------- -------- ----------
Distributions to
Investor A
Shareholders:
From net investment
income................ (3,035) (9,052) (8,431) (3,460) (8,537) (9,313)
Distributions to
Investor B
Shareholders:
From net investment
income................ (26) (6)(a) -- -- -- --
Distributions to
Institutional
Shareholders:
From net investment
income................ (31,980) (31,193) (33,589) (7,939) (8,396) (10,974)
---------- ---------- ---------- -------- -------- ----------
Change in net assets
resulting from
distributions.......... (35,041) (40,251) (42,020) (11,399) (16,933) (20,287)
---------- ---------- ---------- -------- -------- ----------
Capital Transactions:
Proceeds from shares
issued................ 1,494,362 2,013,196 1,684,473 535,685 878,515 1,128,455
Dividends reinvested... 3,675 8,892 8,193 569 1,315 1,537
Cost of shares
redeemed.............. (1,763,064) (1,985,192) (1,563,855) (767,341) (947,523) (1,102,140)
---------- ---------- ---------- -------- -------- ----------
Change in net assets
from capital
transactions........... (265,027) 36,896 128,811 (231,087) (67,693) 27,852
---------- ---------- ---------- -------- -------- ----------
Change in net assets.... (265,027) 36,898 128,817 (231,087) (67,650) 27,849
Net Assets:
Beginning of period.... 909,268 872,370 743,553 354,594 422,244 394,395
---------- ---------- ---------- -------- -------- ----------
End of period.......... $ 644,241 $ 909,268 $ 872,370 $123,507 $354,594 $ 422,244
========== ========== ========== ======== ======== ==========
</TABLE>
- -------
(a)The Fund commenced offering Class B Shares on September 26, 1997.
See notes to financial statements.
46
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Tax-Free Fund Treasury Fund
----------------------------------- -------------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 3,346 $ 4,624 $ 4,686 $ 18,999 $ 23,648 $ 19,396
Net realized gains
(losses) from
investment
transactions.......... 3 (1) (28) 24 31 46
-------- -------- -------- ---------- ---------- ----------
Change in net assets
resulting from
operations............. 3,349 4,623 4,658 19,023 23,679 19,442
-------- -------- -------- ---------- ---------- ----------
Distributions to
Investor A
Shareholders:
From net investment
income................ (584) (1,482) (1,450) (5,234) (8,907) (6,104)
In excess of net
investment income..... -- -- -- (9) -- --
From net realized gains
from investment
transactions.......... -- -- -- -- (20) --
Distributions to
Institutional
Shareholders:
From net investment
income................ (2,762) (3,142) (3,236) (13,765) (14,741) (13,292)
In excess of net
investment income..... -- -- -- (24) -- --
From net realized gains
from investment
transactions.......... -- -- -- -- (32) --
-------- -------- -------- ---------- ---------- ----------
Change in net assets
resulting from
distributions.......... (3,346) (4,624) (4,686) (19,032) (23,700) (19,396)
-------- -------- -------- ---------- ---------- ----------
Capital Transactions:
Proceeds from shares
issued................ 253,902 442,581 407,038 1,827,862 1,682,410 1,723,599
Dividends reinvested... 462 914 824 318 554 627
Cost of shares
redeemed.............. (302,778) (440,676) (399,351) (2,111,268) (1,621,534) (1,606,028)
-------- -------- -------- ---------- ---------- ----------
Change in net assets
from capital
transactions........... (48,414) 2,819 8,511 (283,088) 61,430 118,198
-------- -------- -------- ---------- ---------- ----------
Change in net assets.... (48,411) 2,818 8,483 (283,097) 61,409 118,244
Net Assets:
Beginning of period.... 159,168 156,350 147,867 561,792 500,383 382,139
-------- -------- -------- ---------- ---------- ----------
End of period.......... $110,757 $159,168 $156,350 $ 278,695 $ 561,792 $ 500,383
======== ======== ======== ========== ========== ==========
</TABLE>
See notes to financial statements.
47
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Capitalization Fund Mid Capitalization Fund
------------------------------------ ------------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (4,377) $ (8,901) $ (7,542) $ (4,129) $ (5,117) $ (5,674)
Net realized gains
(losses) from
investment
transactions.......... (26) 124,813 47,197 134,749 108,493 90,985
Net change in
unrealized
appreciation
(depreciation) from
investments........... (109,493) (119,617) (53,844) (104,609) 3,191 (46,690)
--------- --------- --------- --------- --------- ---------
Change in net assets
resulting from
operations............. (113,896) (3,705) (14,189) 26,011 106,567 38,621
--------- --------- --------- --------- --------- ---------
Distributions to
Investor A
Shareholders:
From net realized gains
from investment
transactions.......... (10,802) (8,917) (25,439) (8,203) (15,794) (23,501)
Distributions to
Investor B
Shareholders:
From net realized gains
from investment
transactions.......... (3,334) (2,324) (5,903) (2,657) (4,492) (5,643)
Distributions to
Investor C
Shareholders(a):
From net realized gains
from investment
transactions.......... -- (759) (1,578) -- (409) (458)
Distributions to
Institutional
Shareholders:
From net realized gains
from investment
transactions.......... (36,347) (27,708) (78,723) (52,517) (97,196) (167,629)
--------- --------- --------- --------- --------- ---------
Change in net assets
resulting from
distributions.......... (50,483) (39,708) (111,643) (63,377) (117,891) (197,231)
--------- --------- --------- --------- --------- ---------
Capital Transactions:
Proceeds from shares
issued................ 494,145 901,362 1,051,669 147,939 344,908 344,245
Dividends reinvested... 40,154 31,608 85,417 49,480 87,033 140,424
Cost of shares
redeemed.............. (814,361) (995,717) (909,908) (407,357) (435,074) (411,014)
--------- --------- --------- --------- --------- ---------
Change in net assets
from capital
transactions........... (280,062) (62,747) 227,178 (209,938) (3,133) 73,655
--------- --------- --------- --------- --------- ---------
Change in net assets.... (444,441) (106,160) 101,346 (247,304) (14,457) (84,955)
Net Assets:
Beginning of period.... 747,129 853,289 751,943 634,271 648,728 733,683
--------- --------- --------- --------- --------- ---------
End of period.......... $ 302,688 $ 747,129 $ 853,289 $ 386,967 $ 634,271 $ 648,728
========= ========= ========= ========= ========= =========
</TABLE>
- -------
(a)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
48
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Large Capitalization Fund International Discovery Fund
------------------------------------ ------------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income
(loss)................ $ (1,629) $ (751) $ 622 $ (957) $ (1,318) $ (577)
Net realized gains
(losses) from
investment and foreign
currency transactions. 70,480 23,283 16,112 55,634 27,623 12,746
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... 22,143 63,562 75,519 (80,335) (1,902) 55,463
--------- --------- --------- --------- -------- ---------
Change in net assets
resulting from
operations............. 90,994 86,094 92,253 (25,658) 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.......... (375) (1,885) (19) (1,835) (1,516) --
Distributions to
Investor B
Shareholders:
Tax return of capital.. -- (14) -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (211) (694) (12) (584) (442) --
Distributions to
Investor C
Shareholders(a):
From net realized gains
from investment and
foreign currency
transactions.......... -- (14) -- -- (32) --
Distributions to
Institutional
Shareholders:
From net investment
income................ -- -- (728) -- -- --
In excess of net
investment income..... -- -- -- -- -- (108)
Tax return of capital.. -- (700) -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (6,438) (35,301) (2,346) (18,395) (13,139) --
--------- --------- --------- --------- -------- ---------
Change in net assets
resulting from
distributions.......... (7,024) (38,645) (3,109) (20,814) (15,129) (108)
--------- --------- --------- --------- -------- ---------
Capital Transactions:
Proceeds from shares
issued................ 82,673 87,053 151,936 47,693 68,864 188,198
Dividends reinvested... 4,652 26,512 2,462 12,710 9,533 62
Cost of shares
redeemed.............. (113,833) (125,548) (165,363) (198,705) (91,674) (180,358)
--------- --------- --------- --------- -------- ---------
Change in net assets
from capital
transactions........... (26,508) (11,983) (10,965) (138,302) (13,277) 7,902
--------- --------- --------- --------- -------- ---------
Change in net assets.... 57,462 35,466 78,179 (184,774) (4,003) 75,426
Net Assets:
Beginning of period.... 390,286 354,820 276,641 485,056 489,059 413,633
--------- --------- --------- --------- -------- ---------
End of period.......... $ 447,748 $ 390,286 $ 354,820 $ 300,282 $485,056 $ 489,059
========= ========= ========= ========= ======== =========
</TABLE>
- -------
(a)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
49
<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
----------------------------------- -----------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 10,142 $ 9,501 $ 9,196 $ 8,616 $ 10,166 $ 12,905
Net realized gains
(losses) from
investment
transactions.......... 691 (546) (256) 653 2,682 1,200
Net change in
unrealized
appreciation
(depreciation) from
investments........... (1,757) 860 467 (1,892) 675 (461)
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 9,076 9,815 9,407 7,377 13,523 13,644
-------- -------- -------- -------- -------- --------
Distributions to
Investor A
Shareholders:
From net investment
income................ (1,778) (1,734) (1,142) (590) (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................ (59) (62) (78) (65) (87) (90)
Tax return of capital.. -- -- -- -- (2) --
Distributions to
Investor C
Shareholders(a):
From net investment
income................ (22) (61) (1) (3) (10) (7)
Distributions to
Institutional
Shareholders:
From net investment
income................ (8,283) (7,645) (8,051) (7,958) (9,353) (11,898)
In excess of net
investment income..... -- (48) -- -- -- --
Tax return of capital.. -- (16) (29) -- (174) --
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
distributions.......... (10,142) (9,581) (9,307) (8,616) (10,464) (13,125)
-------- -------- -------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 40,538 94,826 67,317 14,190 32,342 28,502
Dividends reinvested... 4,082 4,297 4,250 2,456 3,151 3,965
Cost of shares
redeemed.............. (91,178) (68,564) (59,256) (58,259) (59,097) (74,602)
-------- -------- -------- -------- -------- --------
Change in net assets
from capital
transactions........... (46,558) 30,559 12,311 (41,613) (23,604) (42,135)
-------- -------- -------- -------- -------- --------
Change in net assets.... (47,624) 30,793 12,411 (42,852) (20,545) (41,616)
Net Assets:
Beginning of period.... 195,833 165,040 152,629 188,029 208,574 250,190
-------- -------- -------- -------- -------- --------
End of period.......... $148,209 $195,833 $165,040 $145,177 $188,029 $208,574
======== ======== ======== ======== ======== ========
</TABLE>
- -------
(a)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
50
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Government
Income Fund Bond Fund
----------------------------------- ------------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 13,241 $ 16,234 $ 16,601 $ 26,093 $ 29,000 $ 33,325
Net realized gains
(losses) from
investment
transactions.......... 1,493 (115) (2,156) 2,425 14,967 5,014
Net change in
unrealized
appreciation
(depreciation) from
investments........... (4,469) 2,119 (99) (13,814) 2,035 4,705
-------- -------- -------- --------- --------- ---------
Change in net assets
resulting from
operations............. 10,265 18,238 14,346 14,704 46,002 43,044
-------- -------- -------- --------- --------- ---------
Distributions to
Investor A
Shareholders:
From net investment
income................ (2,684) (3,394) (3,562) (778) (1,029) (1,195)
Tax return of capital.. -- (266) (661) -- -- --
From net realized gains
from investment
transactions.......... -- -- -- (36) -- --
Distributions to
Investor B
Shareholders:
From net investment
income................ (1,063) (1,251) (1,259) (268) (302) (256)
Tax return of capital.. -- (111) (233) -- -- --
From net realized gains
from investment
transactions.......... -- -- -- (15) -- --
Distributions to
Investor C
Shareholders(a):
From net investment
income................ (3) (8) (4) (7) (26) (17)
Tax return of capital.. -- (1) (1) -- -- --
Distributions to
Institutional
Shareholders:
From net investment
income................ (9,491) (9,477) (9,151) (25,246) (27,889) (31,847)
Tax retun of capital... -- (718) (1,697) -- -- --
From net realized gains
from investment
transactions.......... -- -- -- (1,118) -- --
-------- -------- -------- --------- --------- ---------
Change in net assets
resulting from
distributions.......... (13,241) (15,226) (16,568) (27,468) (29,246) (33,315)
-------- -------- -------- --------- --------- ---------
Capital Transactions:
Proceeds from shares
issued................ 47,892 63,657 72,865 49,058 84,885 99,111
Dividends reinvested... 3,175 4,148 4,289 17,146 19,777 23,608
Cost of shares
redeemed.............. (83,794) (61,398) (46,463) (176,431) (134,070) (188,258)
-------- -------- -------- --------- --------- ---------
Change in net assets
from capital
transactions........... (32,727) 6,407 30,691 (110,227) (29,408) (65,539)
-------- -------- -------- --------- --------- ---------
Change in net assets.... (35,703) 9,419 28,469 (122,991) (12,652) (55,810)
Net Assets:
Beginning of period.... 240,379 230,960 202,491 505,685 518,337 574,147
-------- -------- -------- --------- --------- ---------
End of period.......... $204,676 $240,379 $230,960 $ 382,694 $ 505,685 $ 518,337
======== ======== ======== ========= ========= =========
</TABLE>
- -------
(a)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
51
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Municipal Michigan Municipal
Bond Fund Bond Fund
----------------------------------- -----------------------------------
For the For the
For the eleven months For the For the eleven months For the
year ended ended year ended year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 4,593 $ 4,984 $ 6,295 $ 9,903 $ 9,887 $ 10,862
Net realized gains
(losses) from
investment
transactions.......... 428 2,879 798 981 1,120 370
Net change in
unrealized
appreciation
(depreciation) from
investments........... (438) (21) 950 (2,440) 3,953 2,487
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
operations............. 4,583 7,842 8,043 8,444 14,960 13,719
-------- -------- -------- -------- -------- --------
Distributions to
Investor A
Shareholders:
From net investment
income................ (287) (361) (344) (1,303) (1,611) (1,596)
In excess of net
investment income..... -- (5) -- (2) (6) --
From net realized gains
from investment
transactions.......... (90) (172) (42) (212) (112) (125)
Distributions to
Investor B
Shareholders:
From net investment
income................ (18) (25) (28) (112) (127) (118)
In excess of net
investment income..... -- -- -- -- (1) --
From net realized gains
from investment
transactions.......... (7) (13) (5) (22) (10) (11)
Distributions to
Institutional
Shareholders:
From net investment
income................ (4,288) (5,004) (5,598) (8,489) (8,863) (8,576)
In excess of net
investment income..... -- (69) -- (17) (34) --
From net realized gains
from investment
transactions.......... (1,234) (2,220) (635) (1,265) (561) (626)
-------- -------- -------- -------- -------- --------
Change in net assets
resulting from
distributions.......... (5,924) (7,869) (6,652) (11,422) (11,325) (11,052)
-------- -------- -------- -------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 9,852 17,096 30,200 34,583 49,586 43,600
Dividends reinvested... 713 949 686 2,341 2,688 2,460
Cost of shares
redeemed.............. (38,965) (29,067) (28,261) (58,653) (43,899) (37,409)
-------- -------- -------- -------- -------- --------
Change in net assets
from capital
transactions........... (28,400) (11,022) 2,625 (21,729) 8,375 8,651
-------- -------- -------- -------- -------- --------
Change in net assets.... (29,741) (11,049) 4,016 (24,707) 12,010 11,318
Net Assets:
Beginning of period.... 134,064 145,113 141,097 248,765 236,755 225,437
-------- -------- -------- -------- -------- --------
End of period.......... $104,323 $134,064 $145,113 $224,058 $248,765 $236,755
======== ======== ======== ======== ======== ========
</TABLE>
See notes to financial statements.
52
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Conservative Balanced
Allocation Fund Allocation Fund
------------------------------------- ------------------------------------
For the For the
For the eleven months December 30, For the eleven months For the
year ended ended 1996 to year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997(a) 1999 1998 1997
---------- ------------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 640 $ 530 $ 139 $ 5,700 $ 6,604 $ 5,337
Net realized gains
(losses) from
investment and foreign
currency transactions. 518 387 (102) 15,226 8,982 12,043
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (330) 692 335 (12,513) 16,238 5,097
------- ------- ------- --------- -------- --------
Change in net assets
resulting from
operations............. 828 1,609 372 8,413 31,824 22,477
------- ------- ------- --------- -------- --------
Distributions to
Investor A
Shareholders:
From net investment
income................ -- -- -- (360) (460) (454)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- (472) (504) (1,957)
Distributions to
Investor B
Shareholders:
From net investment
income................ -- -- -- (89) (125) (90)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- (192) (192) (547)
Distributions to
Investor C
Shareholders(b):
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................ (621) (515) (122) (5,206) (6,660) (4,750)
From net realized gains
from investment and
foreign currency
transactions.......... (660) (98) -- (6,148) (6,807) (13,278)
------- ------- ------- --------- -------- --------
Change in net assets
resulting from
distributions.......... (1,281) (613) (122) (12,470) (14,790) (21,142)
------- ------- ------- --------- -------- --------
Capital Transactions:
Proceeds from shares
issued................ 3,936 9,933 11,873 32,544 72,317 167,477
Dividends reinvested... 995 610 122 11,335 13,392 17,657
Cost of shares
redeemed.............. (1,684) (4,795) (1,958) (131,988) (83,157) (50,433)
------- ------- ------- --------- -------- --------
Change in net assets
from capital
transactions........... 3,247 5,748 10,037 (88,109) 2,552 134,701
------- ------- ------- --------- -------- --------
Change in net assets.... 2,794 6,744 10,287 (92,166) 19,586 136,036
Net Assets:
Beginning of period.... 17,031 10,287 -- 290,852 271,266 135,230
------- ------- ------- --------- -------- --------
End of period.......... $19,825 $17,031 $10,287 $ 198,686 $290,852 $271,266
======= ======= ======= ========= ======== ========
</TABLE>
- -------
(a)Period from commencement of operations.
(b)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
53
<PAGE>
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Equity
Allocation Fund Income Fund
------------------------------------- ------------------------------------
For the For the
For the eleven months December 30, For the eleven months For the
year ended ended 1996 to year ended ended year ended
May 31, May 31, June 30, May 31, May 31, June 30,
1999 1998 1997(a) 1999 1998 1997
---------- ------------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
From Investment
Activities:
Operations:
Net investment income.. $ 373 $ 412 $ 232 $ 4,840 $ 5,994 $ 7,779
Net realized gains
(losses) from
investment and foreign
currency transactions. 2,971 1,126 (648) 94,130 48,190 49,802
Net change in
unrealized
appreciation
(depreciation) from
investments and
translation of assets
and liabilities in
foreign currencies.... (2,958) 2,816 2,394 (61,914) 13,536 38,267
-------- -------- ------- --------- -------- ---------
Change in net assets
resulting from
operations............. 386 4,354 1,978 37,056 67,720 95,848
-------- -------- ------- --------- -------- ---------
Distributions To
Investor A
Shareholders:
From net investment
income................ -- -- -- (1,152) (1,126) (1,408)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- (10,723) (15,973) (8,386)
Distributions to
Investor B
Shareholders:
From net investment
income................ -- -- -- (178) (127) (150)
From net realized gains
from investment and
foreign currency
transactions.......... -- -- -- (3,010) (3,858) (1,419)
Distributions to
Investor C
Shareholders(b):
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................ (316) (437) (195) (3,699) (3,961) (6,142)
In excess of net
investment income..... -- (10) -- -- -- --
From net realized gains
from investment and
foreign currency
transactions.......... (557) -- -- (29,940) (48,180) (32,123)
-------- -------- ------- --------- -------- ---------
Change in net assets
resulting from
distributions.......... (873) (447) (195) (48,704) (73,345) (49,657)
-------- -------- ------- --------- -------- ---------
Capital Transactions:
Proceeds from shares
issued................ 7,226 9,513 39,922 34,686 41,683 78,441
Dividends reinvested... 843 446 195 21,572 31,258 18,619
Cost of shares
redeemed.............. (16,270) (19,093) (2,857) (132,781) (89,674) (138,602)
-------- -------- ------- --------- -------- ---------
Change in net assets
from capital
transactions........... (8,201) (9,134) 37,260 (76,523) (16,733) (41,542)
-------- -------- ------- --------- -------- ---------
Change in net assets.... (8,688) (5,227) 39,043 (88,171) (22,358) 4,649
Net Assets:
Beginning of period.... 33,816 39,043 -- 414,759 437,117 432,468
-------- -------- ------- --------- -------- ---------
End of period.......... $ 25,128 $ 33,816 $39,043 $ 326,588 $414,759 $ 437,117
======== ======== ======= ========= ======== =========
</TABLE>
- -------
(a)Period from commencement of operations.
(b)Investor C class of shares closed on August 28, 1998.
See notes to financial statements.
54
<PAGE>
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<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)........ $ (4,377) $ (4,129) $ (1,629) $ 10,142
Adjustments to
reconcile net
investment income to
net cash provided
(used) by operating
activities:
Purchases of
investments.......... (5,385,316) (3,404,391) (498,120) (645,519)
Proceeds from
disposition of
investment
securities........... 5,715,854 3,674,904 532,896 690,278
Decrease (increase)
in investments
purchased with cash
collateral from
securities lending... (49,997) 125,264 67,274 38,911
Decrease (increase)
in dividends and
interest receivable.. 15 34 (41) 716
Increase (decrease)
in payable for
return of collateral
received from
securities lending... 49,997 (125,264) (67,274) (38,911)
Increase (decrease)
in accrued expenses.. 206 346 424 93
Net amortization
(accretion) from
investments.......... (115) (91) (2) (1)
Increase in variation
margin payable....... 5,913 6,791 -- --
----------- ----------- --------- ---------
Net cash provided
(used) by operating
activities......... 332,180 273,464 33,528 55,709
----------- ----------- --------- ---------
Cash flows from
financing activities:
Proceeds from shares
issued............... 494,177 147,976 82,663 40,716
Payment of shares
redeemed............. (814,614) (407,544) (113,819) (91,070)
Cash distributions
paid................. (10,329) (13,897) (2,372) (5,355)
----------- ----------- --------- ---------
Net cash provided
(used) by financing
activities......... (330,766) (273,465) (33,528) (55,709)
----------- ----------- --------- ---------
Net increase (decrease)
in cash............... 1,414 (1) -- --
Cash:
Beginning balance..... -- 1 -- --
----------- ----------- --------- ---------
Ending balance........ $ 1,414 $ -- $ -- $ --
=========== =========== ========= =========
</TABLE>
Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions of $40,154, $49,480, $4,652 and $4,082
respectively.
See notes to financial statements.
55
<PAGE>
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<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)............ $ 8,616 $ 13,241 $ 26,093 $ 640
Adjustments to reconcile
net investment income to
net cash provided (used)
by operating activities:
Purchases of investments.. (277,248) (330,099) (2,923,323) (173,829)
Proceeds from disposition
of investment
securities............... 317,614 361,235 3,030,779 171,247
Decrease (increase) in
investments purchased
with cash collateral
from securities lending.. 11,277 24,257 81,413 (4,657)
Decrease (increase) in
dividends and interest
receivable............... 763 776 2,835 (10)
Increase (decrease) in
payable for return of
collateral received from
securities lending....... (11,277) (24,257) (81,413) 4,657
Increase (decrease) in
accrued expenses......... 107 118 255 6
Net amortization
(accretion) from
investments.............. (222) (335) (709) (21)
--------- --------- ----------- ---------
Net cash provided (used)
by operating
activities............. 49,630 44,936 135,930 (1,967)
--------- --------- ----------- ---------
Cash flows from financing
activities:
Proceeds from shares
issued................... 14,183 47,932 49,061 3,936
Payment of shares
redeemed................. (58,280) (83,784) (176,482) (1,684)
Cash distributions paid... (5,533) (9,085) (8,510) (286)
--------- --------- ----------- ---------
Net cash provided (used)
by financing
activities............. (49,630) (44,937) (135,931) 1,966
--------- --------- ----------- ---------
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 $2,456, $3,175, $17,146 and $995, respectively.
See notes to financial statements.
56
<PAGE>
Statements of Cash Flows
- --------------------------------------------------------------------------------
The Parkstone Group of Funds For the Year Ended May 31, 1999
<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)........ $ 5,700 $ 373 $ 4,840
Adjustments to reconcile net investment
income to net cash provided (used) by
operating activities:
Purchases of investments.................. (1,086,111) (206,301) (668,635)
Proceeds from disposition of investment
securities............................... 1,179,819 214,983 788,498
Decrease (increase) in investments
purchased with cash collateral from
securities lending....................... 34,352 2,776 51,719
Decrease (increase) in dividends and
interest receivable...................... 1,109 16 598
Increase (decrease) in payable for return
of collateral received from securities
lending.................................. (34,352) (2,776) (51,719)
Increase (decrease) in accrued expenses... 171 16 328
Net amortization (accretion) from
investments.............................. (28) (4) --
----------- --------- ---------
Net cash provided (used) by operating
activities............................. 100,660 9,083 125,629
----------- --------- ---------
Cash flows from financing activities:
Proceeds from shares issued............... 32,520 7,226 34,761
Payment of shares redeemed................ (131,926) (16,270) (132,939)
Cash distributions paid................... (1,135) (30) (27,132)
----------- --------- ---------
Net cash provided (used) by financing
activities............................. (100,541) (9,074) (125,310)
----------- --------- ---------
Net increase (decrease) in cash............ 119 9 319
Cash:
Beginning balance......................... 1 1 1
----------- --------- ---------
Ending balance............................ $ 120 $ 10 $ 320
=========== ========= =========
</TABLE>
Non-cash financing activities not included herein consist of reinvestment of
dividends and distributions of $11,335, $843 and $21,572, respectively.
See notes to financial statements.
57
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Certificates of Deposit - Yankee (3.9%):
Yankee (3.9%):
$ 5,000 ABN--Amro North America Finance, Inc., 4.94%, 11/17/99... $ 4,998
10,000 Bank of Montreal, 5.16%, 5/3/00.......................... 9,996
10,000 Rabobank, 5.13%, 4/27/00................................. 9,996
--------
Total Certificates Of Deposit--Yankee 24,990
--------
Commercial Paper (77.0%):
Agriculture (1.5%):
5,000 Canadian Wheat Board, 4.89%, 9/27/99..................... 4,921
5,000 Canadian Wheat Board, 4.83%, 10/8/99..................... 4,915
--------
9,836
--------
Automotive (6.9%):
5,000 Daimler Benz North America, 4.89%, 7/7/99................ 4,976
5,000 Daimler Benz North America, 4.88%, 8/25/99............... 4,943
5,000 Daimler Benz North America, 4.88%, 9/8/99................ 4,934
5,000 Ford Motor Credit Corp., 4.88%, 6/22/99.................. 4,986
5,000 Ford Motor Credit Corp., 4.86%, 7/21/99.................. 4,967
5,000 Ford Motor Credit Corp., 4.87%, 8/11/99.................. 4,953
5,000 General Motors Acceptance Corp., 4.94%, 6/2/99........... 4,999
10,000 General Motors Acceptance Corp., 4.86%, 7/21/99.......... 9,933
--------
44,691
--------
Banking (2.3%):
5,000 Abbey National North America, 4.89%, 7/8/99.............. 4,975
5,000 Abbey National North America, 4.88%, 7/22/99............. 4,966
5,000 Abbey National North America, 4.87%, 8/9/99.............. 4,954
--------
14,895
--------
Chemicals (11.6%):
4,200 Air Products & Chemicals, 4.84%, 7/22/99................. 4,172
5,000 Akzo Nobel NV, 4.93%, 6/3/99............................. 4,999
5,000 Bayer Corp., 4.85%, 7/27/99.............................. 4,963
5,000 E.I. Dupont De Nemours & Co., 4.88%, 6/7/99.............. 4,996
5,000 E.I. Dupont De Nemours & Co., 4.88%, 7/14/99............. 4,971
5,000 E.I. Dupont De Nemours & Co., 4.87%, 11/10/99............ 4,892
5,000 Great Lakes Chemical Corp., 4.89%, 6/9/99................ 4,995
5,000 Great Lakes Chemical Corp., 4.89%, 7/1/99................ 4,980
5,000 Great Lakes Chemical Corp., 4.88%, 7/7/99................ 4,976
5,000 Great Lakes Chemical Corp., 4.92%, 8/19/99............... 4,947
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Chemicals, continued:
$ 5,000 Henkel Corp., 4.84%, 6/3/99............................. $ 4,999
6,000 Henkel Corp., 4.88%, 6/30/99............................ 5,977
5,000 Henkel Corp., 4.88%, 8/18/99............................ 4,948
10,000 Monsanto Co., 4.87%, 7/6/99............................. 9,952
--------
74,767
--------
Computer & Office Equipment (0.8%):
5,000 Xerox Credit Corp., 4.90%, 6/2/99....................... 4,999
--------
Diversified Operation (4.6%):
5,000 General Electric Capital Corp., 4.88%, 8/11/99.......... 4,953
5,000 General Electric Capital Corp., 4.89%, 9/14/99.......... 4,930
5,000 General Electric Capital Corp., 4.90%, 9/15/99.......... 4,929
5,000 General Electric Capital Corp., 5.02%, 2/3/00........... 4,830
5,000 Hasbro, Inc., 4.95%, 9/13/99............................ 4,930
5,000 Minnesota Mining & Manufacturing, 4.87%, 7/19/99........ 4,967
--------
29,539
--------
Electrical & Electronic (5.4%):
5,000 Avnet, Inc., 4.87%, 7/16/99............................. 4,970
5,000 Eaton Corp., 4.94%, 8/17/99............................. 4,948
5,000 Eaton Corp., 4.91%, 9/1/99.............................. 4,938
5,000 Motorola, Inc., 4.88%, 7/1/99........................... 4,980
5,000 Motorola, Inc., 4.86%, 7/29/99.......................... 4,961
5,000 National Rural Utilities Cooperative Finance Corp.,
4.85%, 7/9/99.......................................... 4,975
5,000 National Rural Utilities Cooperative Finance Corp.,
4.86%, 7/12/99......................................... 4,973
--------
34,745
--------
Finance - Conduit (7.7%):
5,000 Ciesco L.P., 4.87%, 6/8/99.............................. 4,995
5,000 Ciesco L.P., 4.85%, 7/19/99............................. 4,968
5,000 Corporate Asset Funding Co., Inc., 4.88%, 6/1/99........ 5,000
5,000 Corporate Asset Funding Co., Inc., 4.94%, 8/19/99....... 4,947
5,000 Corporate Asset Funding Co., Inc., 4.89%, 11/10/99...... 4,892
5,000 Delaware Funding Corp., 4.87%, 6/17/99.................. 4,989
5,000 Delaware Funding Corp., 4.87%, 7/20/99.................. 4,967
5,000 Preferred Receivables Funding Corp., 4.87%, 6/23/99..... 4,985
5,000 Preferred Receivables Funding Corp., 4.88%, 6/25/99..... 4,984
5,000 Preferred Receivables Funding Corp., 4.88%, 7/12/99..... 4,973
--------
49,700
--------
</TABLE>
Continued
58
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Financial Services (8.5%):
$10,000 American Express Co., 4.88%, 7/7/99...................... $ 9,953
5,000 American Express Co., 4.85%, 7/21/99..................... 4,967
5,000 American Express Co., 4.85%, 10/20/99.................... 4,906
5,000 Associates First Capital Corp.,
4.87%, 6/16/99.......................................... 4,990
5,000 Associates First Capital Corp.,
4.88%, 7/21/99.......................................... 4,967
5,000 Associates First Capital Corp.,
4.87%, 8/25/99.......................................... 4,943
5,000 Household Finance, 4.93%, 8/25/99........................ 4,943
5,000 Paccar Financial Corp., 4.90%, 6/3/99.................... 4,999
5,000 Paccar Financial Corp., 4.86%, 7/20/99................... 4,967
5,000 Transamerica Finance Corp.,
4.90%, 7/7/99........................................... 4,976
--------
54,611
--------
Food Products & Services (6.1%):
5,000 Archer Daniels Midland, 4.92%, 9/9/99.................... 4,933
5,000 Campbell Soup Co., 4.85%, 9/13/99........................ 4,931
5,000 Campbell Soup Co., 4.87%, 9/15/99........................ 4,929
5,000 Campbell Soup Co., 4.87%, 12/1/99........................ 4,878
10,000 Diageo PLC, 4.90%, 6/9/99................................ 9,988
5,000 Diageo PLC, 4.89%, 7/12/99............................... 4,973
5,000 Golden Peanut, 4.89%, 7/12/99............................ 4,973
--------
39,605
--------
Glass Products (0.8%):
5,000 Guardian Industries, 4.88%, 7/14/99...................... 4,971
--------
Insurance (6.2%):
5,000 John Hancock Capital Corp.,
4.89%, 6/29/99.......................................... 4,981
5,000 New York Life Capital Corp.,
4.87%, 6/9/99........................................... 4,995
5,000 New York Life Capital Corp.,
4.88%, 7/21/99.......................................... 4,967
5,000 New York Life Capital Corp.,
4.87%, 8/26/99.......................................... 4,943
5,000 New York Life Capital Corp.,
4.87%, 9/15/99.......................................... 4,929
5,000 Prudential Funding Corp., 4.89%, 6/9/99.................. 4,994
5,000 Prudential Funding Corp., 4.87%, 8/10/99................. 4,953
5,000 Prudential Funding Corp., 4.86%, 8/11/99................. 4,953
--------
39,715
--------
Machinery & Equipment (2.3%):
5,000 Caterpillar Financial, 4.90%, 6/18/99.................... 4,988
5,000 Caterpillar Financial, 4.85%, 7/7/99..................... 4,976
5,000 John Deere Capital Corp., 4.87%, 8/11/99................. 4,953
--------
14,917
--------
Manufacturing (1.5%):
5,000 Stanley Works, 4.88%, 6/2/99............................. 4,999
5,000 Stanley Works, 4.88%, 6/28/99............................ 4,982
--------
9,981
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Commercial Paper, continued:
Oil & Exploration, Production & Services (2.3%):
$ 5,000 BP America, Inc., 4.87%, 7/9/99.......................... $ 4,974
5,000 BP America, Inc., 4.86%, 7/12/99......................... 4,973
5,000 BP America, Inc., 4.93%, 1/24/00......................... 4,840
--------
14,787
--------
Pharmaceuticals (4.6%):
5,000 American Home Products, 4.86%, 7/28/99................... 4,962
5,000 American Home Products, 4.87%, 8/17/99................... 4,949
5,000 American Home Products, 4.87%, 8/26/99................... 4,943
5,000 Glaxo Welcome, Inc., 4.89%, 6/11/99...................... 4,994
5,000 Glaxo Welcome, Inc., 4.87%, 8/10/99...................... 4,953
5,000 Glaxo Welcome, Inc., 4.92%, 8/18/99...................... 4,947
--------
29,748
--------
Photography (2.3%):
5,000 Eastman Kodak, 4.89%, 6/1/99............................. 5,000
5,000 Eastman Kodak, 4.88%, 7/14/99............................ 4,971
5,000 Eastman Kodak, 4.86%, 8/18/99............................ 4,948
--------
14,919
--------
Telecommunications (1.6%):
5,000 AT&T Corp., 4.89%, 6/2/99................................ 5,000
5,000 AT&T Corp., 4.89%, 6/8/99................................ 4,995
--------
9,995
--------
Total Commercial Paper 496,421
--------
Corporate Bonds (14.0%):
Financial Services (12.4%):
10,000 Abbey National North America,
5.13%, 5/4/00........................................... 9,994
10,000 All State Funding, 5.05%*, 8/31/99....................... 10,000
5,000 All State Funding Agreement,
5.01%*, 12/1/99......................................... 5,000
5,000 All State Funding Agreement,
5.08%*, 3/31/00......................................... 5,000
10,000 Key Bank North America,
4.98%*, 9/23/99......................................... 9,998
10,000 Merrill Lynch & Co., Inc.,
5.04%*, 9/29/99......................................... 10,000
10,000 Morgan Guarantee Trust,
4.97%*, 11/29/99........................................ 10,000
10,000 Travelers Funding Agreement,
5.03%*, 8/17/99......................................... 10,000
10,000 Travelers Funding Agreement,
5.06%*, 3/31/00......................................... 10,000
--------
79,992
--------
Insurance (1.6%):
10,000 John Hancock Mutual, 5.28%*, 7/22/99..................... 10,000
--------
Total Corporate Bonds 89,992
--------
U.S. Government Agencies (2.1%):
Fannie Mae (0.6%):
3,770 6.03%, 7/2/99............................................ 3,773
--------
Federal Home Loan Bank (1.5%):
10,000 5.07%*, 3/24/00.......................................... 10,000
--------
Total U.S. Government Agencies 13,773
--------
</TABLE>
Continued
59
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Prime Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Repurchase Agreements (3.3%):
$21,094 Morgan Stanley, 4.86%, 6/1/99, (Collateralized by
$3,480, Freddie Mac, 6.85%, 3/31/14, market value--
$3,458, and $18,330, Fannie Mae, 5.63%, 4/24/02,
market value--$18,268)................................ $ 21,094
--------
Total Repurchase Agreements 21,094
--------
Total Investments (Cost $646,270)(a)--100.3% 646,270
Liabilities in excess of other assets--(0.3)% (2,029)
--------
Total Net Assets--100.0% $644,241
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31,1999.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
See notes to financial statements.
60
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
U.S. Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
U.S. Government Agencies (88.9%):
Fannie Mae (23.9%):
$ 2,500 4.86%, 6/8/99............................................ $ 2,497
2,000 4.85%, 6/10/99........................................... 1,998
1,500 4.82%, 7/1/99............................................ 1,494
2,500 4.79%, 7/9/99............................................ 2,488
2,500 4.76%, 7/15/99........................................... 2,486
1,000 4.76%, 7/21/99........................................... 993
1,500 5.49%, 8/3/99............................................ 1,501
1,000 4.78%, 8/5/99............................................ 991
2,000 4.80%, 8/10/99........................................... 1,982
3,500 4.76%, 8/11/99........................................... 3,467
1,000 4.80%, 8/12/99........................................... 991
1,000 4.85%, 8/17/99........................................... 990
1,000 4.87%, 8/26/99........................................... 989
1,000 4.77%, 9/7/99............................................ 987
1,500 4.77%, 10/12/99.......................................... 1,474
1,000 4.77%, 10/18/99.......................................... 982
1,000 4.82%, 11/4/99........................................... 979
1,185 8.35%, 11/10/99.......................................... 1,202
1,000 4.89%, 11/12/99.......................................... 978
--------
29,469
--------
Federal Farm Credit Bank (4.9%):
1,501 4.83%, 7/6/99............................................ 1,494
2,500 5.50%, 9/1/99............................................ 2,503
2,000 6.06%, 9/8/99............................................ 2,006
--------
6,003
--------
Federal Home Loan Bank (21.3%):
1,482 4.85%, 6/9/99............................................ 1,480
2,500 4.79%, 6/16/99........................................... 2,495
1,000 4.78%, 7/6/99............................................ 995
1,500 4.75%, 7/14/99........................................... 1,492
1,000 4.84%, 7/21/99........................................... 993
1,000 4.79%, 7/28/99........................................... 993
2,500 4.76%, 8/6/99............................................ 2,479
2,500 4.77%, 8/11/99........................................... 2,477
2,500 4.77%, 8/13/99........................................... 2,476
1,500 4.76%, 10/13/99.......................................... 1,474
1,000 4.81%, 11/5/99........................................... 979
5,000 4.87%*, 11/10/99......................................... 4,999
3,000 5.07%*, 3/24/00.......................................... 3,000
--------
26,332
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac (25.0%):
$ 4,100 4.86%, 6/3/99........................................... $ 4,099
1,500 4.77%, 6/16/99.......................................... 1,497
1,188 4.85%, 6/18/99.......................................... 1,185
2,500 4.86%, 6/25/99.......................................... 2,492
1,470 4.82%, 6/29/99.......................................... 1,465
1,000 4.77%, 7/12/99.......................................... 995
1,500 4.78%, 7/13/99.......................................... 1,492
1,500 4.78%, 7/14/99.......................................... 1,492
1,000 4.86%, 8/5/99........................................... 991
2,000 4.84%, 8/16/99.......................................... 1,980
2,000 4.86%, 8/18/99.......................................... 1,979
1,000 4.86%, 8/19/99.......................................... 989
1,000 4.86%, 8/23/99.......................................... 989
1,000 4.81%, 8/25/99.......................................... 989
2,494 4.84%, 8/27/99.......................................... 2,465
1,000 4.81%, 9/3/99........................................... 988
1,000 4.81%, 9/24/99.......................................... 985
1,500 4.77%, 10/5/99.......................................... 1,475
1,000 4.87%, 11/18/99......................................... 977
1,500 4.80%, 11/19/99......................................... 1,466
--------
30,990
--------
Student Loan Marketing Assoc. (13.8%):
2,500 4.78%, 6/3/99........................................... 2,491
5,000 5.37%*, 11/12/99........................................ 4,999
5,000 5.27%*, 1/12/00......................................... 4,999
4,500 5.21%*, 3/8/00.......................................... 4,504
--------
16,993
--------
Total U.S. Government Agencies 109,787
--------
Repurchase Agreements (11.3%):
14,014 Morgan Stanley, 4.86%, 6/1/99, (Collateralized by $100,
Freddie Mac, 5.58%, 1/7/02, market value--$101, and by
$14,480 Fannie Mae, 6.40%, 5/14/09, market value--
$14,246)............................................... 14,014
--------
Total Repurchase Agreements 14,014
--------
Total Investments (Cost
$123,801)(a)--100.2% 123,801
Liabilities in excess of other assets--(0.2)% (294)
--------
Total Net Assets--100.0% $123,507
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity agreements. The interest rates, which will change
periodically, are based upon bank prime rates or an index of the market
interest rates. The rate reflected on the Schedule of Portfolio Investments
is the rate in effect on May 31, 1999.
(a) Cost for federal income tax and financial reporting purposes are the same.
See notes to financial statements.
61
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper (99.0%):
Arizona (0.8%):
$ 500 Flagstaff, Arizona, Industrial Development Authority,
3.65%*, 4/1/19......................................... $ 500
400 Phoenix, Arizona, G.O., 6.00%, 7/1/99................... 401
--------
901
--------
California (0.2%):
250 Oakland, California, G.O., 6.00%, 12/15/99.............. 254
--------
Colorado (1.2%):
250 Denver, Colorado, City & County, Series C, 5.10%,
8/1/99................................................. 251
1,055 Water Conservancy District, Colorado Water Revenue Bond,
4.35%, 6/15/99, MBIA................................... 1,055
--------
1,306
--------
Georgia (0.9%):
1,000 Monroe County, Georgia Power, 3.45%*, 7/1/25............ 1,000
--------
Illinois (3.5%):
1,000 Chicago Park District Tax Anticipation Warrants, 4.30%,
9/17/99................................................ 1,002
1,900 Illinois Health Facilities Authority Advocate, Health
Care, Series B, 3.30%*, 8/15/22........................ 1,900
1,000 Lake County, Illinois Certificates of Participation,
7.00%, 6/1/99.......................................... 1,000
--------
3,902
--------
Indiana (4.0%):
1,875 Franklin County, Indiana, Economic Development Revenue,
Bond, 3.50%*, 6/7/10................................... 1,875
1,500 Goshen, Indiana, Industrial Development Revenue Bond,
3.50%*, 3/1/14......................................... 1,500
1,000 Indiana Health Facilities Financing Authority, 3.30%*,
8/1/06................................................. 1,000
--------
4,375
--------
Kentucky (2.0%):
1,140 Bath County, Kentucky, Industrial Building Revenue Bond,
3.50%*, 12/1/13........................................ 1,140
1,035 Lewis County, Kentucky, Industrial Building Revenue
Bond, 3.50%*, 12/1/03.................................. 1,035
--------
2,175
--------
Louisiana (2.1%):
1,300 De Soto Parish, Louisiana, PCR, Central Louisiana
Electric Co., Refunding Bonds, Series A, 3.20%*,
7/1/18................................................. 1,300
1,000 East Baton Rouge, Louisiana, PCR, 3.35%*, 3/1/22........ 1,000
--------
2,300
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Maine (1.8%):
$ 2,000 Portland, Maine, Revenue Bond, Barber Foods Project,
Series S, 3.50%*, 7/1/03............................... $ 2,000
--------
Maryland (3.7%):
2,235 Harford County, Maryland, 5.00%, 12/1/99................ 2,257
1,800 Montgomery County, Maryland Consolidated Public,
Improvement, Series 1992-A, 5.10%, 7/1/99.............. 1,802
--------
4,059
--------
Michigan (13.2%):
2,000 Detroit, Michigan, 3.25%*, 7/1/23....................... 2,000
400 Kalamazoo County, Michigan, Sanitary Water Disposal
System, 6.00%,
11/1/99................................................ 404
1,500 Michigan Municipal Bond Authority, Series D-2, 4.25%,
8/27/99................................................ 1,502
1,000 Michigan State Recreation Project, 5.50%, 11/1/99....... 1,011
3,100 Michigan Strategic Fund Limited Obligation Revenue,
Consumers Power Co., Series A, 3.35%*, 6/15/10, LOC:
Canadian Imperial Bank................................. 3,100
1,100 Michigan Strategic Fund Limited Obligation Revenue,
Consumers Power Co., Series A, 3.35%*, 6/15/10, LOC:
Canadian Imperial Bank................................. 1,100
1,300 Michigan Strategic Fund, 3.35%*, 9/1/30, LOC: Barclays
PLC.................................................... 1,300
4,300 Monroe County, Michigan, Economic Development Corp.
Limited Obligation, Detroit Edison, Series Cc, 3.35%*,
10/1/24, LOC: Barclays Bank PLC........................ 4,301
--------
14,718
--------
Minnesota (1.8%):
2,000 Minnesota School Districts Tax & Aid Anticipation,
Certificates, Series B, 3.63%, 8/27/99................. 2,000
--------
New York (2.8%):
2,000 Metropolitan Transportation Authority, Bond
Anticipation, Series Cp-1, 2.90%, 7/8/99............... 2,000
1,150 New York, New York G.O., 3.30%*, 8/15/21................ 1,150
--------
3,150
--------
North Carolina (2.3%):
2,500 University of North Carolina Chapel Hill Revenue,
3.35%*, 7/1/12, LOC: Nations Bank...................... 2,500
--------
</TABLE>
Continued
62
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Ohio (4.8%):
$ 2,000 Columbus, Ohio, Series 1, 3.10%*,
6/1/16................................................. $ 2,000
1,700 Highland Heights, Ohio, 3.95%, 8/19/99.................. 1,701
1,000 Ohio State University Capital Receipts Revenue, 3.15%*,
12/1/06................................................ 1,000
670 Orange Ohio City School District, 3.30%, 12/1/99........ 670
--------
5,371
--------
Oklahoma (2.0%):
1,200 Muskogee, PCR, Oklahoma Gas & Electric Co., Series A,
3.45%*, 1/1/25......................................... 1,200
1,000 Tulsa, Oklahoma, 6.20%, 6/1/99.......................... 1,000
--------
2,200
--------
Pennsylvania (9.8%):
1,500 East Hempfield Township, Pennsylvania, Industrial
Development Authority, 3.37%*, 8/15/17................. 1,500
1,000 Geisinger Authority, Penn State Geisinger Health System,
Series 1998-B, 3.35%*, 8/15/28......................... 1,000
2,000 Montgomery County, Pennsylvania, PCR, Peco Energy,
3.40%, 6/8/99.......................................... 2,000
2,000 Montgomery County, Pennsylvania, PCR, Series 1994-A,
2.95%, 6/10/99......................................... 2,000
2,100 Quakertown, Pennsylvania, Hospital Authority Revenue,
3.45%*, 7/1/05......................................... 2,100
1,000 Sayre, Pennsylvania, Healthcare Facilities Hospital,
Series M, 3.30%*, 12/1/20.............................. 1,000
1,300 Washington County Higher Education, Pooled Equipment
Lease Revenue, 3.25%*, 11/1/05......................... 1,300
--------
10,900
--------
South Carolina (2.7%):
3,000 South Carolina Public Service Notice, 2.95%*, 6/10/99... 3,000
--------
Tennessee (3.2%):
3,500 Tennessee State School Bond Authority, 3.00%, 6/17/99... 3,500
--------
Texas (10.1%):
1,140 Dallas County, Texas, 7.00%, 8/15/99.................... 1,149
1,500 Fort Worth, Texas, 3.10%, 9/14/99....................... 1,500
2,000 Houston, Texas, 2.85%, 6/24/99.......................... 2,000
1,000 Houston, Texas, Series C, G.O., 2.95%, 7/30/99.......... 1,000
3,000 San Antonio, Texas Water System, 2.85%, 6/17/99......... 3,000
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------------- ---------
<C> <S> <C>
Municipal Bonds, Notes, & Commercial Paper, continued:
Texas, continued:
$ 520 Texas State Public Finance Authority, Parks & Wildlife
Department, Series B, 6.00%, 2/1/00, AMBAC............. $ 530
2,000 University of Texas, Permanent University Fund, 3.15%,
9/15/99................................................ 2,000
--------
11,179
--------
Utah (10.6%):
1,500 Intermountain Power Agency, Utah Power Supply, Revenue
Bond, 2.90%, 6/11/99................................... 1,500
3,000 Intermountain Power Agency, Utah Power Supply Revenue
Bond, 3.10%, 8/12/99................................... 3,000
1,200 Provo, Utah City School District, G.O., 3.15%*, 6/15/99. 1,201
3,500 Utah County, Utah, PCR, USX Corp., 3.10%*, 11/1/17, LOC:
Wachovia............................................... 3,500
2,500 Utah Highway, G.O., 3.15%, 8/16/99...................... 2,500
--------
11,701
--------
Virginia (2.7%):
1,000 Viginia Commonwealth, G.O., 3.10%, 7/21/99.............. 1,000
2,000 Virginia Public School Authority, Putters Series 109,
3.37%*, 5/20/00........................................ 2,000
--------
3,000
--------
Washington (9.0%):
2,000 King County, Washington, 3.10%,
6/16/99................................................ 2,000
3,000 King County, Washington, 3.10%,
6/15/99................................................ 3,000
930 Port Angeles, Washington, Port Industrial Development,
Admiral Marine Project, 3.50%*, 4/1/22................. 930
2,000 Washington State, G.O., 3.30%*, 6/1/20.................. 2,000
2,000 Washington State Health Care Facilities Authority,
Revenue, 3.50%*, 1/1/23, LOC: Morgan Guarantee Trust,
Fred Hutchinson Cancer Research Center................. 2,000
--------
9,930
--------
Wisconsin (3.8%):
1,250 Milwaukee, Wisconsin, Metropolitan Sewer District,
7.00%, 9/1/99.......................................... 1,260
325 Wisconsin State G.O., 5.00%, 5/1/00..................... 330
1,640 Wisconsin State Clean Water Revenue Bond, Series 1,
4.50%, 6/1/99.......................................... 1,640
1,000 Wisconsin State, G.O., 3.15%, 9/13/99................... 1,000
--------
4,230
--------
Total Municipal Bonds, Notes, & Commercial Paper 109,651
--------
</TABLE>
Continued
63
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Tax-Free Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Amortized
Amount Description Cost
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Investment Companies (0.1%):
100,000 Provident Municipal Cash Mutual Fund..................... $ 100
--------
Total Investment Companies 100
--------
Cash Equivalents (0.1%):
$ 142 Goldman Sachs Financial Square Tax Exempt................ 142
--------
Total Cash Equivalents 142
--------
Total Investments (Cost
$109,893)(a)--99.2% 109,893
Other assets in excess of liabilities--0.8% 864
--------
Total Net Assets--100.0% $110,757
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1999.
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
AMBAC--American Municipal Bond Assurance Corp.
G.O.--General Obligation
LOC--Letter of Credit
MBIA--Municipal Bond Insurance Association
PCR--Pollution Control Revenue
See notes to financial statements.
64
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Treasury Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Bills (2.7%):
$ 2,500 6/24/99.................................................. $ 2,493
5,000 7/1/99................................................... 4,981
--------
Total U.S. Treasury Bills 7,474
--------
U.S. Treasury Notes (21.8%):
12,500 5.88%, 8/31/99........................................... 12,532
4,500 5.75%, 9/30/99........................................... 4,515
8,000 6.00%, 10/15/99.......................................... 8,036
7,000 5.88%, 11/15/99.......................................... 7,032
7,000 5.63%, 11/30/99.......................................... 7,030
7,500 5.38%, 1/31/00........................................... 7,526
10,000 5.88%, 2/15/00........................................... 10,072
4,000 5.50%, 3/31/00........................................... 4,020
--------
Total U.S. Treasury Notes 60,763
--------
Repurchase Agreements (75.6%):
13,000 BA Securities, 4.78%, 6/1/99, (Collateralized by $12,980,
U.S. Treasury Note, 5.88%, 2/15/00, market value--
$13,495)................................................ 13,000
6,000 Chase Securities, 4.40%, 6/1/99, (Collateralized by
$6,015, U.S. Treasury Note, 7.13%, 9/30/99, market
value--$6,072).......................................... 6,000
13,000 Dresdner Securities, 4.80%, 6/1/99, (Collateralized by
$11,766, U.S. Treasury Note, 7.50%, 2/15/05, market
value--$13,257)......................................... 13,000
</TABLE>
- -------
(a) Cost and value for federal income tax and financial reporting purposes are
the same.
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
$ 69,500 Greenwich Capital, 4.80%, 6/1/99, (Collateralized by
$61,835, U.S. Treasury Note, 5.75%, 11/30/02, market
value--$63,777, and by $22,980, U.S. Treasury Strip,
9.13%, 5/15/18, market value--$7,113)................... $ 69,500
13,000 JP Morgan, 4.79%, 6/1/99, (Collateralized by $11,581,
U.S. Treasury Note, 7.50%, 11/15/16, market value--
$13,036)................................................ 13,000
13,900 Lehman Brothers, 4.80%, 6/1/99, (Collateralized by
$24,045, U.S. Treasury Strip, 5.68%, 5/15/08, market
value--$14,178)......................................... 13,900
12,903 Merrill Lynch, 4.75%, 6/1/99, (Collateralized by $44,465,
U.S. Treasury Strip, 8.88%, 2/15/19, market value--
$13,162)................................................ 12,903
69,500 Morgan Stanley, 4.80%, 6/1/99, (Collateralized by
$68,600, U.S. Treasury Note, 6.50%, 5/15/05, market
value--$71,301)......................................... 69,500
--------
Total Repurchase Agreements 210,803
--------
Total Investments (Cost $279,040) (a)--100.1% 279,040
Liabilities in excess of other assets--(0.1)% (345)
--------
Total Net Assets--100.0% $278,695
========
</TABLE>
See notes to financial statements.
65
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Small Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (89.1%):
Advertising (1.6%):
17,700 Doubleclick Inc.(b)(c).................................... $ 1,725
92,550 Valassis Communications, Inc.(b).......................... 3,222
--------
4,947
--------
Apparel/Shoes (0.9%):
23,300 K-Swiss Inc., Class A..................................... 1,337
42,300 Tarrant Apparel Group(b)(c)............................... 1,282
--------
2,619
--------
Banking (1.8%):
37,900 Cullen/Frost Bankers, Inc. ............................... 2,132
400,900 Republic Security Financial Corp. ........................ 3,357
--------
5,489
--------
Business Services (5.5%):
35,885 Corporate Executive Board Corp.(b)........................ 1,052
91,100 Diamond Technology Partners, Inc.(b)...................... 2,186
95,900 FYI, Inc.(b).............................................. 2,637
56,300 Iron Mountain, Inc.(b).................................... 1,555
76,000 NOVA Corp.(b)(c).......................................... 1,691
85,400 Onesource Information Services, Inc.(b)(c)................ 806
53,800 QRS Corp.(b).............................................. 3,982
91,000 Sykes Enterprises, Inc.(b)................................ 2,832
--------
16,741
--------
Chemicals (1.3%):
94,700 Macdermid, Inc. .......................................... 3,812
--------
Computer Services (7.3%):
45,000 Checkfree Holdings Corp.(b)............................... 2,118
37,000 CMGI Inc.(b).............................................. 3,834
98,600 E*Trade Group Inc.(b)(c).................................. 4,387
48,100 Infospace.com, Inc.(b)(c)................................. 2,261
45,200 Intervu, Inc.(b).......................................... 1,565
105,000 National Data Corp.(c).................................... 4,941
39,100 Pegasus Systems, Inc.(b).................................. 1,364
24,200 Safeguard Scientifics, Inc.(b)............................ 1,770
--------
22,240
--------
Computer Software & Peripherals (6.3%):
105,000 Ardent Software, Inc.(b).................................. 2,100
171,200 INSpire Insurance Solutions(b)............................ 2,985
69,800 Macrovision Corp.(b)...................................... 3,176
40,000 Mercury Interactive Corp.(b).............................. 1,315
59,000 Micromuse, Inc.(b)(c)..................................... 2,353
68,900 National Computer Systems, Inc............................ 2,153
59,000 Platinum Technology(b).................................... 1,718
110,600 Smart Modular Technologies(b)............................. 1,666
95,700 Unigraphics Solutions, Inc.(b)............................ 1,525
--------
18,991
--------
Consumer Goods & Services (1.0%):
105,300 JAKKS Pacific, Inc.(b).................................... 2,915
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Educational Services (0.5%):
105,400 School Specialty, Inc.(b)................................. $ 1,568
--------
Electric Utilities (1.1%):
64,100 Calpine Corp.(b).......................................... 3,473
--------
Electronic Components/Instruments (5.4%):
85,700 CTS Corp. ................................................ 4,799
125,800 DII Group, Inc.(b)........................................ 4,144
176,700 Gentex Corp.(b)(c)........................................ 5,307
33,500 Optical Coating Laboratory, Inc. ......................... 2,173
--------
16,423
--------
Environmental Services (0.7%):
100,700 Casella Waste Systems, Inc., Series A(b).................. 1,983
--------
Financial Services (3.4%):
100,086 Affiliated Managers Group(b).............................. 2,928
220,000 Amresco, Inc.(b).......................................... 1,513
78,800 Metris Cos., Inc. ........................................ 4,594
57,200 Prism Financial Corp., Inc.(b)............................ 1,266
--------
10,301
--------
Health Care - Services (6.8%):
155,100 American Retirement Corp.(b)(c)........................... 2,627
224,700 Hooper Holmes, Inc. ...................................... 4,073
87,700 Laser Vision Centers, Inc.(b)............................. 4,998
90,000 Medquist, Inc.(b)......................................... 3,308
58,885 NCS HealthCare, Inc., Class A(b)(c)....................... 810
139,800 Priority Healthcare Corp. Class B(b)...................... 4,770
--------
20,586
--------
Home Building (0.5%):
124,400 Standard Pacific Corp. ................................... 1,633
--------
Home Furnishings (1.7%):
104,100 Ethan Allen Interiors, Inc. .............................. 3,318
77,400 Trex Company, Inc.(b)..................................... 1,698
--------
5,016
--------
Insurance (2.3%):
186,700 Annuity & Life Re......................................... 4,807
218,000 Scottish Annuity & Life Holdings.......................... 2,126
--------
6,933
--------
Leisure (0.6%):
57,400 Cheap Tickets, Inc.(b).................................... 1,808
--------
Machinery & Equipment (1.1%):
188,803 MotivePower Industries, Inc.(b)........................... 3,198
--------
Manufacturing - Capital Goods (1.6%):
63,900 Astec Industries, Inc.(b)................................. 2,388
123,000 Wabash National Corp.(c).................................. 2,345
--------
4,733
--------
Manufacturing - Consumer Goods (1.0%):
100,000 Monaco Coach Corp.(b)..................................... 3,000
--------
</TABLE>
Continued
66
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Small Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (2.3%):
98,600 Biomatrix, Inc.(b)(c)..................................... $ 3,021
70,300 Gliatech, Inc.(b)......................................... 1,801
14,500 Minimed, Inc.(b).......................................... 856
27,400 Visx, Inc.(b)............................................. 1,423
--------
7,101
--------
Metals & Mining (0.8%):
72,700 Stillwater Mining Co.(b).................................. 2,322
--------
Oilfield Services & Equipment (0.5%):
64,700 Cal Dive International, Inc.(b)........................... 1,585
--------
Pharmaceuticals (2.3%):
53,400 Alpharma, Inc., Class A(c)................................ 1,425
101,200 Geltex Pharmaceuticals, Inc.(b)(c)........................ 1,720
157,200 King Pharmaceuticals, Inc.(b)(c).......................... 3,734
--------
6,879
--------
Radio (1.1%):
124,900 Citadel Communications(b)................................. 3,450
--------
Resorts & Entertainment (1.4%):
115,700 Premier Parks, Inc.(b)(c)................................. 4,122
--------
Restaurants (1.0%):
113,900 Foodmaker, Inc.(b)........................................ 3,075
--------
Retail (3.6%):
61,000 Ames Department Stores, Inc.(b)........................... 2,501
80,600 BJ's Wholesale Club, Inc.(b).............................. 2,096
90,900 The Children's Place(b)(c)................................ 3,539
108,000 The Men's Warehouse, Inc.(b)(c)........................... 2,757
--------
10,893
--------
Semiconductors (8.3%):
189,900 Aeroflex, Inc.(b)......................................... 2,765
84,200 ATMI, Inc.(b)............................................. 1,852
75,000 Burr-Brown Corp.(b)....................................... 2,400
92,200 Credence Systems Corp.(b)(c).............................. 2,731
129,200 Cymer, Inc.(b)(c)......................................... 2,366
55,000 Photronics, Inc.(b)(c).................................... 1,086
112,200 PMC-Sierra, Inc.(b)....................................... 5,450
51,700 PRI Automation(b)(c)...................................... 1,267
57,300 SDL, Inc.(b).............................................. 5,329
--------
25,246
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Technology (2.4%):
92,300 Electronics For Imaging, Inc.(b)......................... $ 4,528
135,000 Mercury Computer Systems, Inc.(b)........................ 2,675
--------
7,203
--------
Telecommunications - Services & Equipment (11.2%):
104,400 Antec Corp.(b)(c)........................................ 3,060
45,700 Applied Micro Circuits Corp.(b).......................... 2,702
156,600 Commscope, Inc.(b)....................................... 4,111
124,500 Dycom(b)................................................. 6,007
50,200 Gilat Satellite Networks Ltd.(b)......................... 2,648
90,300 Intermedia Communications of Florida(b)(c)............... 2,286
91,000 Mastec, Inc.(b).......................................... 2,207
130,700 Microwave Power Devices, Inc.(b)......................... 1,993
96,500 Sawtek, Inc.(b).......................................... 3,824
147,400 Skytel Communications, Inc.(b)........................... 2,994
64,000 Worldgate Communications, Inc.(b)........................ 2,368
--------
34,200
--------
Transportation & Shipping (1.3%):
100,700 Atlas Air, Inc.(b)....................................... 2,707
20,300 Expeditors International of Washington, Inc.............. 1,129
--------
3,836
--------
Wholesale Distribution (0.5%):
75,900 Wesco International, Inc.(b)............................. 1,504
--------
Total Common Stocks 269,825
--------
Repurchase Agreements (6.3%):
$ 19,000 Prudential Securities, 4.78%, 6/1/99, (Collateralized by
$19,000, Freddie Mac, 7.00%, 3/15/24, market value--
$19,842)................................................ 19,000
--------
Total Repurchase Agreements 19,000
--------
Cash Equivalents (4.0%):
12,111 Goldman Sachs Financial Square Premium................... 12,111
--------
Total Cash Equivalents 12,111
--------
Short Term Securities Purchased with Collateral (16.5%):
Floating Rate Note (13.2%):
25,000 Bankers Trust Corp., 5.03%, 8/6/99....................... 24,997
15,000 Sigma Finance Inc., 4.91%, 9/15/99....................... 15,000
--------
39,997
--------
</TABLE>
Continued
67
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Small Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Purchased with Collateral, continued:
Repurchase Agreements (3.3%):
$10,000 Bear Stearns Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)............................... $ 10,000
--------
Total Short Term Securities Purchased with Collateral 49,997
--------
Total Investments (Cost $315,820)(a)--115.9% 350,933
Other assets in excess of liabilities--(15.9)% (48,245)
--------
Total Net Assets--100.0% $302,688
========
</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................ 114 $22,851 6/17/99 $2,276
</TABLE>
The aggregate market value of cash pledged to cover margin requirements for
open futures positions at May 31, 1999 was $1,026.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $3. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 49,714
Unrealized depreciation..................................... (14,604)
--------
Net unrealized appreciation................................. 35,110
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of the security has been loaned at May 31, 1999.
See notes to financial statements.
68
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Mid Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (95.7%):
Advertising (1.0%):
111,000 Valassis Communications, Inc.(b).......................... $ 3,864
--------
Air Transportation (1.5%):
186,750 Comair Holdings, Inc. .................................... 3,536
39,300 Gulfstream Aerospace Corp.(b)............................. 2,427
--------
5,963
--------
Appliances & Household Products (0.6%):
34,200 Maytag.................................................... 2,413
--------
Banking (2.7%):
83,400 First Tennessee National Corp.(c)......................... 3,435
70,000 Old Kent Financial Corp.(c)............................... 3,146
59,300 Zions Bancorporation...................................... 3,780
--------
10,361
--------
Beverages & Tobacco (2.1%):
79,900 Canandaigua Wine Co., Class A(b).......................... 3,975
86,800 Coors (Adolph), Class B................................... 4,123
--------
8,098
--------
Broadcasting & Publishing (6.0%):
97,600 Cablevision Systems(b)(c)................................. 7,698
79,100 Chancellor Media Corp.(b)(c).............................. 4,019
134,400 Clear Channel Communications, Inc.(b)(c).................. 8,879
47,200 Univision Communications, Inc.(b)(c)...................... 2,800
--------
23,396
--------
Business Services (2.8%):
58,200 Cintas Corp.(c)........................................... 3,696
27,300 Northpoint Communications(b)(c)........................... 1,162
71,718 Paychex, Inc. ............................................ 2,125
109,100 SunGard Data Systems, Inc.(b)(c).......................... 3,818
--------
10,801
--------
Computer Hardware (1.7%):
47,500 Lexmark International Group(b)............................ 6,466
--------
Computer Services (1.9%):
17,200 Excite, Inc.(b)(c)........................................ 2,288
48,900 Geocities(b).............................................. 4,896
--------
7,184
--------
Computer Software & Peripherals (3.3%):
47,300 Citrix Systems, Inc.(b)................................... 2,338
16,800 Inktomi Corp.(b)(c)....................................... 1,726
76,800 International Network Services(b)......................... 2,870
59,200 Legato Systems, Inc.(b)(c)................................ 3,242
30,250 VERITAS Software Corp.(b)(c).............................. 2,670
--------
12,846
--------
Consumer Goods & Services (1.4%):
52,200 Clorox.................................................... 5,269
--------
Data Processing & Reproduction (1.8%):
186,862 Fiserv, Inc.(b)........................................... 7,007
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Diversified Operations (0.8%):
55,800 Corning, Inc. ........................................... $ 3,048
--------
Electric Utility (1.4%):
107,400 AES Corp.(b)............................................. 5,343
--------
Electrical & Electronic (3.4%):
95,900 Gentex Corp.(b).......................................... 2,880
47,800 Jabil Circuit, Inc.(b)(c)................................ 2,306
48,800 Sanmina Corp.(b)(c)...................................... 3,659
80,400 Solectron Corp.(b)....................................... 4,402
--------
13,247
--------
Environmental Services (0.5%):
43,000 Browning-Ferris Industries, Inc. ........................ 1,785
--------
Financial Services (4.6%):
36,800 Capital One Financial Corp. ............................. 5,545
51,500 Charles Schwab Corp.(c).................................. 5,449
71,300 Providian Financial...................................... 6,841
--------
17,835
--------
Food Products & Services (3.7%):
137,000 Tricon Global Restaurants, Inc.(b)....................... 7,980
142,700 U.S. Foodservice(b)...................................... 6,350
--------
14,330
--------
Health Care - Services (3.7%):
117,800 Medquist, Inc.(b)........................................ 4,329
263,800 Oxford Health(b)......................................... 5,029
54 U.S. Surgical-Rights..................................... (d)
60,100 Wellpoint Health Networks(b)............................. 4,954
--------
14,312
--------
Industrial Goods & Services (2.1%):
142,200 Ecolab, Inc. ............................................ 6,043
35,600 Nordson.................................................. 2,092
--------
8,135
--------
Industrial Supplies (0.7%):
141,100 MSC Industrial Direct Co., Inc.(b)....................... 2,663
--------
Insurance (4.6%):
113,000 AFLAC, Inc. ............................................. 5,763
130,000 Nationwide Financial Services, Inc. ..................... 5,614
45,400 Progressive Corp. ....................................... 6,373
--------
17,750
--------
Motorcycles (0.6%):
42,800 Harley-Davidson, Inc. ................................... 2,185
--------
Oil & Gas Exploration, Production & Services (2.0%):
52,400 Anadarko Petroleum Corp. ................................ 1,965
65,700 Apache Corp. ............................................ 2,365
104,200 Baker Hughes............................................. 3,243
--------
7,573
--------
</TABLE>
Continued
69
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Mid Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Pharmaceuticals (5.2%):
21,800 Allergan, Inc. ........................................... $ 2,027
69,600 Biogen(b)................................................. 7,595
169,100 Forest Laboratories(b).................................... 8,054
36,200 Medimmune, Inc.(b)........................................ 2,303
--------
19,979
--------
Retail (12.5%):
91,600 Abercrombie & Fitch(b).................................... 7,707
49,400 American Eagle Outfitters(b).............................. 2,016
110,400 Best Buy Co., Inc.(b)..................................... 5,023
150,100 BJ's Wholesale Club, Inc.(b).............................. 3,903
9,400 EToys, Inc.(b)(c)......................................... 570
401,000 Family Dollar Stores...................................... 8,948
99,100 Linens 'N Things, Inc.(b)................................. 3,952
181,900 Office Depot, Inc.(b)..................................... 3,797
122,300 Ross Stores, Inc.(c)...................................... 5,618
61,100 Tandy, Inc. .............................................. 5,041
51,400 The Children's Place(b)................................... 2,001
--------
48,576
--------
Semiconductors (7.4%):
157,400 Altera Corp.(b)........................................... 5,479
82,000 KLA-Tenor Corp.(b)(c)..................................... 3,731
83,600 PMC-Sierra, Inc.(b)....................................... 4,060
83,200 Teradyne, Inc.(b)......................................... 4,394
107,600 Vitesse Semiconductor Corp.(b)(c)......................... 5,912
117,600 Xilinx, Inc.(b)........................................... 5,226
--------
28,802
--------
Technology (5.5%):
52,500 Electronics for Imaging, Inc.(b).......................... 2,576
162,100 Gemstar International Group Ltd.(b)(c).................... 10,019
128,700 Symbol Technologies, Inc. ................................ 6,435
18,200 Uniphase Corp.(b)(c)...................................... 2,439
--------
21,469
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Telecommunications - Services & Equipment (10.2%):
270,550 Centurytel, Inc. ....................................... $ 10,366
108,050 Comverse Technology, Inc.(b)(c)......................... 7,300
95,000 Frontier Corp. ......................................... 4,999
83,000 Global Crossing Ltd.(b)(c).............................. 3,937
45,700 Plantronics, Inc.(b).................................... 2,799
239,800 Qwest Communications International, Inc.(b)(c).......... 10,178
--------
39,579
--------
Total Common Stocks 370,279
--------
Cash Equivalents (4.3%):
$16,572 Goldman Sachs Financial Square Premium.................. 16,572
--------
Total Cash Equivalents 16,572
--------
Short Term Securities Purchased with Collateral (20.7%):
Floating Rate Note (12.9%):
15,000 Household CCMT ABT 96 Series A4, 4.96%, 1/18/00......... 15,000
10,000 Merrill Lynch, 5.05%, 10/4/99........................... 10,000
10,000 Merrill Lynch, 5.04%, 9/29/99........................... 10,000
15,000 Sigma Finance Inc., 4.91%, 9/15/99...................... 15,000
--------
50,000
--------
Repurchase Agreements (7.8%):
30,266 Bear Stearns Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description) 30,266
--------
Total Short Term Securities Purchased with Collateral 80,266
--------
Total Investments (Cost $376,708) (a)--120.7% 467,117
Other assets in excess of liabilities--(20.7)% (80,150)
--------
Total Net Assets--100.0% $386,967
========
</TABLE>
- -------
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $97,611
Unrealized depreciation...................................... (7,202)
-------
Net unrealized appreciation.................................. 90,409
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1999.
(d) Market value is less than $1,000.
See notes to financial statements.
70
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Large Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks (97.7%):
Advertising (1.2%):
75,000 Omnicom Group, Inc.(c)................................... $ 5,250
---------
Banking (1.3%):
78,100 State Street Corp. ...................................... 5,955
---------
Broadcasting/Cable (2.3%):
137,000 Comcast Corp.--Class A................................... 5,275
120,000 USA Networks, Inc.(b).................................... 4,800
---------
10,075
---------
Business Services (2.1%):
134,200 Automatic Data Processing, Inc. ......................... 5,527
118,000 Ceridian Corp.(b)(c)..................................... 3,894
---------
9,421
---------
Chemicals (0.7%):
80,300 Monsanto Co. ............................................ 3,332
---------
Computer Hardware (6.6%):
110,000 Dell Computer Corp.(b)................................... 3,788
83,300 EMC Corp.(b)............................................. 8,299
94,000 IBM...................................................... 10,933
111,200 Sun Microsystems, Inc.(b)................................ 6,644
---------
29,664
---------
Computer Software & Peripherals (3.8%):
210,200 Microsoft, Inc.(b)....................................... 16,961
---------
Consumer Goods & Services (3.9%):
51,600 Colgate Palmolive Co.(c)................................. 5,154
43,000 Gillette Co. ............................................ 2,193
108,200 Procter & Gamble Co. .................................... 10,103
---------
17,450
---------
Diversified Operations (3.1%):
159,800 Tyco International Ltd. ................................. 13,963
---------
Electrical & Electronic (3.6%):
60,000 Applied Materials, Inc.(b)............................... 3,296
126,900 General Electric Co. .................................... 12,904
---------
16,200
---------
Environmental Services (1.4%):
120,000 Waste Management, Inc.(c)................................ 6,345
---------
Financial Services (5.7%):
30,000 American Express Co. .................................... 3,636
32,000 Charles Schwab Corp. .................................... 3,386
5,000 DLJ Direct(b)............................................ 206
123,200 Freddie Mac.............................................. 7,184
33,000 J.P. Morgan.............................................. 4,597
189,000 MBNA Corp. .............................................. 5,221
15,000 Providian Financial...................................... 1,439
---------
25,669
---------
Food & Beverage (1.1%):
71,300 The Coca-Cola Co. ....................................... 4,871
---------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Food Products & Services (2.0%):
48,000 Kroger Co.(b)............................................ $ 2,811
128,000 Safeway, Inc.(b)......................................... 5,952
---------
8,763
---------
Industrial Goods & Services (1.1%):
82,000 United Technologies Corp.(c)............................. 5,089
---------
Insurance (2.9%):
112,763 American International Group, Inc. ...................... 12,890
---------
Manufacturing - Consumer Goods (1.3%):
43,000 Lexmark International Group(b)........................... 5,853
---------
Medical Equipment & Supplies (1.5%):
28,800 Guidant Corp. ........................................... 1,440
73,800 Medtronic, Inc. ......................................... 5,240
---------
6,680
---------
Office Equipment & Services (3.2%):
49,300 Hewlett-Packard Co. ..................................... 4,650
39,100 Pitney Bowes, Inc. ...................................... 2,493
130,800 Xerox Corp. ............................................. 7,349
---------
14,492
---------
Oil & Gas (2.0%):
100,000 Burlington Resources Inc. ............................... 4,294
75,000 Schlumberger Ltd. ....................................... 4,514
---------
8,808
---------
Paper Products (1.0%):
88,000 International Paper Co. ................................. 4,400
---------
Pharmaceuticals (12.0%):
112,000 Bristol Myers Squibb Co. ................................ 7,686
116,800 Eli Lilly & Co. ......................................... 8,344
78,000 Johnson & Johnson........................................ 7,225
124,000 Merck & Co., Inc. ....................................... 8,370
98,200 Pfizer, Inc. ............................................ 10,507
127,600 Schering Plough Corp. ................................... 5,750
94,000 Warner-Lambert Co. ...................................... 5,828
---------
53,710
---------
Resorts & Entertainment (3.1%):
90,000 Carnival Cruise Lines.................................... 3,690
148,000 Time Warner Inc. ........................................ 10,073
---------
13,763
---------
Retail (11.6%):
118,000 CVS Corp. ............................................... 5,428
150,000 Dayton Hudson Corp. ..................................... 9,451
165,000 Home Depot, Inc. ........................................ 9,384
148,000 Staples(b)(c)............................................ 4,255
84,000 Tandy, Inc. ............................................. 6,930
143,000 TJX Companies, Inc. ..................................... 4,290
182,600 Wal-Mart................................................. 7,783
188,000 Walgreen Co.(c).......................................... 4,371
---------
51,892
---------
</TABLE>
Continued
71
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Large Capitalization Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Common Stocks, continued:
Semiconductors (2.8%):
150,000 Intel Corp. ............................................. $ 8,110
39,600 Texas Instruments........................................ 4,331
---------
12,441
---------
Telecommunications - Services & Equipment (15.5%):
51,000 AirTouch Communications, Inc.(b)......................... 5,126
95,700 Alltel Corp. ............................................ 6,860
173,700 Cisco Systems, Inc.(b)................................... 18,911
261,800 Lucent Technologies, Inc.(c)............................. 14,890
133,000 MCI WorldCom, Inc.(b).................................... 11,488
38,000 Motorola, Inc. .......................................... 3,147
55,000 Nortel Networks Corp. ................................... 4,125
90,000 SBC Communications, Inc. ................................ 4,601
---------
69,148
---------
Wholesale Distribution - Pharmaceuticals (0.9%):
67,000 Cardinal Health, Inc.(c)................................. 4,045
---------
Total Common Stocks 437,130
---------
Cash Equivalents (1.8%):
$ 8,229 Goldman Sachs Financial Square Premium................... 8,229
---------
Total Cash Equivalents 8,229
---------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- ---------
<C> <S> <C>
Short Term Securities Purchased with Collateral (10.2%)
Floating Rate Note (8.9%):
$10,000 Amex Centurion, 4.95%, 4/24/00......................... $ 10,000
20,000 Merrill Lynch, 5.04%, 9/29/99.......................... 20,000
10,000 Sigma Finance Inc., 4.91%, 9/15/99..................... 10,000
---------
40,000
---------
Repurchase Agreements (1.3%):
5,660 Bear Stearns Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description) .............................. 5,660
---------
Total Short Term Securities Purchased with Collateral 45,660
---------
Total Investments (Cost $319,208)(a)--109.7% 491,019
Other assets in excess of liabilities--(9.7)% (43,271)
---------
Total Net Assets--100.0% $ 447,748
=========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $62. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $177,216
Unrealized depreciation..................................... (5,467)
--------
Net unrealized appreciation................................. 171,749
========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1999.
See notes to financial statements.
72
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
International Discovery Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (96.6%):
Australia (1.2%):
Banking (1.2%):
223,000 National Australia Bank Ltd. ............................ $ 3,618
--------
Belgium (0.9%):
Retail Stores/Catalog (0.9%):
4,100 Colruyt NV............................................... 2,673
--------
Brazil (0.4%):
Telecommunications (0.4%):
13,000 Telebras ADR............................................. 1,085
13,000 Telebras - Rights........................................ 1
--------
1,086
--------
Finland (4.2%):
Computer Software (1.5%):
129,000 TT Tieto Corp. .......................................... 4,519
--------
Paper Products (0.4%):
42,000 Upm-Kymmene.............................................. 1,234
--------
Telecommunications - Services & Equipment (2.3%):
95,170 Nokia AB, Class A, ADR................................... 6,757
--------
12,510
--------
France (10.7%):
Commercial Services (1.2%):
15,400 Altran Technologies...................................... 3,496
--------
Energy (1.7%):
41,300 Total SA, B Shares....................................... 5,031
--------
Engineering (0.4%):
8,000 Compagnie De Saint-Gobain................................ 1,259
--------
Health & Personal Care (2.0%):
9,850 L'Oreal.................................................. 5,948
--------
Industrial Goods & Services (0.9%):
35,700 Vivendi.................................................. 2,650
35,700 Vivendi Rights........................................... 37
--------
2,687
--------
Insurance (2.0%):
54,000 AXA...................................................... 6,240
--------
Machinery & Equipment (1.6%):
35,000 Sidel SA................................................. 4,867
--------
Telecommunications - Services & Equipment (0.9%):
33,900 France Telecom SA........................................ 2,605
--------
32,133
--------
Germany (7.6%):
Banking (1.0%):
90,000 BHF Bank AG.............................................. 2,931
--------
Electrical & Electronic (1.3%):
58,000 Siemens AG............................................... 3,912
--------
Energy (1.1%):
55,700 Veba AG.................................................. 3,186
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Germany, continued:
Insurance (1.5%):
16,000 Allianz AG............................................... $ 4,383
--------
Telecommunications (2.7%):
61,400 Mannesmann AG............................................ 8,410
--------
22,822
--------
Hong Kong (3.6%):
Banking (1.3%):
118,000 HSBC Holdings PLC........................................ 3,866
--------
Electrical & Electronic (1.0%):
813,000 Johnson Electric Holdings Ltd............................ 2,998
--------
Gas & Electric Utility (0.7%):
1,466,796 Hong Kong & China Gas Co. Ltd............................ 2,071
--------
Industrial Holding Company (0.6%):
228,500 Hutchison Whampoa........................................ 1,908
--------
10,843
--------
Ireland (1.0%):
Banking (1.0%):
165,000 Bank of Ireland.......................................... 3,107
--------
Italy (2.2%):
Insurance (1.2%):
95,000 Assicurazioni Generali................................... 3,387
--------
Jewelry (0.5%):
262,200 Bulgari SpA.............................................. 1,587
--------
Telecommunications--Services & Equipment (0.5%):
265,000 Telecom Italia Mobile SpA................................ 1,563
--------
6,537
--------
Japan (16.5%):
Banking (1.1%):
237,000 Bank of Tokyo-Mitsubishi Ltd.(b)......................... 3,178
--------
Computer Hardware (1.2%):
42,000 TDK Corp.(b)............................................. 3,608
--------
Computer Software (2.7%):
222,000 Nihon Unisys............................................. 4,135
5,500 Softbank Corp............................................ 633
16 Yahoo Japan Corp.(b)..................................... 3,284
--------
8,052
--------
Consumer Electronics (1.1%):
36,000 Sony Corp.(b)............................................ 3,385
--------
Electronic Components/Instruments (1.5%):
101,000 Fanuc Co. Ltd.(b)........................................ 4,355
--------
Financial Services (0.5%):
149,000 Nomura Securities Co.(b)................................. 1,487
--------
Food & Household Products (1.1%):
124,000 Kao Corp................................................. 3,407
--------
</TABLE>
Continued
73
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
International Discovery Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Japan, continued:
Manufacturing - Consumer Goods (2.3%):
161,000 Canon, Inc............................................... $ 4,064
78,000 Fuji Photo Film Ltd.(b).................................. 2,789
--------
6,853
--------
Pharmaceuticals (2.4%):
162,000 Takeda Chemical Industries(b)............................ 7,201
--------
Retail Stores/Catalog (1.4%):
36,785 Ito Yokado............................................... 2,195
24,000 Seven-Eleven Japan Ltd................................... 2,084
--------
4,279
--------
Telecommunications (1.2%):
367 Nippon Telegraph & Telephone Corp. (b)................... 3,584
--------
49,389
--------
Korea (1.0%):
Metals (1.0%):
113,100 Pohang Iron & Steel ADR.................................. 2,863
--------
Mexico (1.4%):
Beverages & Tobacco (0.5%):
85,000 Coca-Cola Femsa SA--ADR.................................. 1,535
--------
Entertainment (0.5%):
33,000 Grupo Televisa SA--ADR(b)................................ 1,380
--------
Telecommunications (0.4%):
16,000 Telefonos De Mexico--ADR................................. 1,279
--------
4,194
--------
Netherlands (9.0%):
Broadcasting & Publishing (1.9%):
137,892 Wolters Kluwer NV........................................ 5,558
--------
Consumer Goods & Services (0.5%):
24,554 Unilever NV.............................................. 1,637
--------
Energy (2.3%):
127,800 Royal Dutch Petroleum.................................... 7,136
--------
Financial Services (0.7%):
60,000 Fortis NV................................................ 1,954
--------
Insurance (1.8%):
34,600 Aegon NV................................................. 2,804
47,500 ING Groep NV............................................. 2,545
--------
5,349
--------
Retail Stores/Catalog (1.8%):
153,900 Kon Ahold NV............................................. 5,383
--------
27,017
--------
Portugal (1.0%):
Telecommunications (1.0%):
65,500 Portugal Telecom SA...................................... 2,964
--------
Singapore (3.8%):
Banking (0.7%):
214,000 Development Bank of Singapore............................ 2,209
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Singapore, continued:
Electrical & Electronic (0.7%):
647,000 Natsteel Electronics Ltd................................. $ 2,157
--------
Real Estate (0.9%):
475,000 City Developments........................................ 2,837
--------
Transportation & Shipping (1.5%):
470,000 Singapore International Airlines......................... 4,196
--------
11,399
--------
Spain (2.7%):
Gas & Electric Utility (1.0%):
140,000 Endesa-Empresa Nac Electric.............................. 2,988
--------
Telecommunications (1.7%):
106,080 Telefonica SA............................................ 5,100
--------
8,088
--------
Switzerland (8.0%):
Banking (2.1%):
18,900 Credit Suisse Group...................................... 3,288
10,000 UBS AG-Registered........................................ 2,901
--------
6,189
--------
Food Products & Services (1.2%):
1,930 Nestle SA................................................ 3,477
--------
Insurance (1.3%):
1,996 Swiss Reinsurance Co..................................... 3,795
--------
Pharmaceuticals (3.4%):
2,000 Novartis AG.............................................. 2,909
709 Roche Holdings AG........................................ 7,521
--------
10,430
--------
23,891
--------
United Kingdom (19.2%):
Aerospace/Defense (0.7%):
300,392 British Aerospace PLC(b)................................. 1,969
--------
Banking (3.9%):
240,000 Abbey National PLC....................................... 4,937
224,000 Allied Zurich PLC........................................ 2,818
243,500 Standard Chartered PLC................................... 3,685
--------
11,440
--------
Beverages & Tobacco (1.1%):
226,600 Bass PLC................................................. 3,344
--------
Commercial Services (0.5%):
175,285 Logica PLC (b)........................................... 1,626
--------
Electric Utility (1.5%):
660,000 National Grid Group PLC.................................. 4,466
--------
Electrical & Electronic (1.0%):
320,000 General Electric PLC..................................... 3,023
--------
Energy (1.8%):
301,000 BP Amoco PLC............................................. 5,383
--------
</TABLE>
Continued
74
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
International Discovery Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
United Kingdom, continued:
Engineering (1.0%):
686,000 Invensys PLC............................................. $ 3,125
--------
Food Products & Services (0.5%):
148,000 Compass Group PLC........................................ 1,502
--------
Industrial Goods & Services (1.9%):
137,800 Boc Group PLC............................................ 2,358
301,800 Imperial Chemical Industries PLC......................... 3,326
--------
5,684
--------
Leisure (1.1%):
162,000 Granada Group PLC........................................ 3,375
--------
Media and Entertainment (1.5%):
240,400 Pearson PLC.............................................. 4,584
--------
Pharmaceuticals (1.8%):
193,900 Glaxo Holdings PLC....................................... 5,459
Telecommunications (0.9%):
147,700 Vodafone................................................. 2,826
--------
57,806
--------
United States (2.2%):
Pharmaceuticals (1.0%):
53,000 Pharmacia & Upjohn, Inc.................................. 2,938
--------
Telecommunications (1.2%):
19,100 Airtouch Communications, Inc. (b)........................ 1,919
34,500 Frontier Corp............................................ 1,816
--------
3,735
--------
6,673
--------
Total Common Stocks 289,613
--------
</TABLE>
<TABLE>
<CAPTION>
Shares or
Principal Security Market
Amount Description Value
---------- --------------------------------------------------------- --------
<C> <S> <C>
Preferred Stocks (1.2%):
Germany (0.3%):
Business Services (0.3%):
2,010 SAP AG................................................... $ 806
--------
United Kingdom (0.9%):
Telecommunications (0.9%):
233,600 Cable & Wireless PLC..................................... 2,864
--------
Total Preferred Stocks 3,670
--------
Cash Equivalents (2.0%):
$ 6,111 Goldman Sachs Financial Square Premium................... 6,111
--------
Total Cash Equivalents 6,111
--------
Total Investments (Cost $254,498) (a)--99.8% 299,394
Other assets in excess of liabilities--0.2% 888
--------
Total Net Assets--100.0% $300,282
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $7. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $53,584
Unrealized depreciation...................................... (8,695)
-------
Net unrealized appreciation.................................. 44,889
=======
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements.
75
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Limited Maturity Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Notes (5.3%):
$ 2,800 5.75%, 11/15/00(b)....................................... $ 2,817
5,000 5.75%, 8/15/03(b)........................................ 5,010
--------
Total U.S. Treasury Notes 7,827
--------
Corporate Bonds (48.1%):
Euro Dollar (9.4%):
3,750 British Gas & Finance, 8.38%, 9/8/99..................... 3,770
5,000 National Power Co. PLC, 7.12%, 7/11/01................... 5,029
5,000 SNCB Belgium Rail, 8.25%, 2/2/00......................... 5,077
--------
13,876
--------
Financial Services (16.4%):
4,000 ERAC USA Finance Co, 7.00%, 6/15/00...................... 4,034
5,300 Fannie Mae Whole Loan, Series 1999-W4, Class A2, 6.25%,
10/25/08................................................ 5,281
5,000 Franchise Financial Corporation of America, 7.00%,....... 4,987
5,000 Lehman Brothers Holdings, 6.89%, 10/10/00................ 5,036
5,000 Main Place Real Estate Investment, 5.65%, 3/25/00........ 5,000
--------
24,338
--------
Gas & Electric Utility (1.6%):
2,350 Enserch Corp., 7.00%, 8/15/99............................ 2,356
--------
Industrial Goods & Services (10.2%):
3,300 Browning Ferris, 6.08%, 1/18/00.......................... 3,273
1,500 Champion International Corp., 9.70%, 5/1/01.............. 1,583
2,975 Computer Assoc. International, 6.25%, 4/15/03............ 2,886
1,500 Dial Corp., 6.63, 6/15/03................................ 1,485
4,700 Ingersoll-Rand, 6.34%, 12/3/01........................... 4,728
1,000 Trans Ocean Container Corp., 12.25%, 7/1/04.............. 1,090
--------
15,045
--------
Industrials (2.0%):
3,000 Occidental Petroleum, 6.02%, 11/24/99.................... 3,000
--------
Manufacturing-Capital Goods (2.0%):
3,000 Comdisco, Inc., 6.00%, 1/30/02........................... 2,965
--------
Retail Stores/Catalog (1.4%):
2,000 Dillards, Inc., 9.50%, 10/15/01.......................... 2,128
--------
Telecommunications (3.6%):
2,400 Cable & Wire Communications, 6.38%, 3/6/03............... 2,370
3,000 US West Communications, 6.13%, 11/21/00.................. 3,000
--------
5,370
--------
Transportation & Shipping (1.5%):
2,250 JB Hunt Transport Services, 6.00%, 12/12/00.............. 2,230
--------
Total Corporate Bonds 71,308
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Asset Backed Securities (35.4%):
$ 5,153 Amresco Snimt, 7.55%, 9/26/27............................ $ 5,132
4,000 Case Credit, 6.12%, 8/1/01............................... 3,985
15,000 Champion Home Equity Loan Trust, Series 1998-1, Class A2,
Interest Only, 8.12%, 9/25/01........................... 2,501
5,000 Copelco Capital Funding Corp, Series 1997-A, Class A4,
6.47%, 4/20/05 ......................................... 5,027
2,500 Empire Funding, Series 99-1, Class A3, 6.44%, 4/25/13.... 2,491
3,000 EQCC Home Equity Loan Trust, 1998-1, A3f, 6.23%,......... 3,009
2,880 GE Capital Mortgage Services, Inc., Series 1997-He4,
Class A4, 6.77%, 4/25/15 ............................... 2,904
6,040 General Electric Corp., Series A3, 6.18%, 6/25/15........ 6,045
2,509 Green Tree Financial Corp., 6.55%, 7/15/28............... 2,535
751 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09... 746
4,989 Oakwood Mortgage Investors, Inc., 6.95%, 8/15/27......... 5,022
2,927 PALS, Series 99-1, Class A1, 6.30%, 3/25/29.............. 2,882
4,150 Saxon Asset Securities Trust, Series 1997-1, Class Af3,
7.38%, 11/25/23......................................... 4,228
41 Structured Asset Securities Co., 7.50%, 8/25/26.......... 41
6,000 WFS Financial Owner Trust, 5.70%, 11/20/03............... 5,906
--------
Total Asset Backed Securities 52,454
--------
Mortgage Backed Securities (3.8%):
2,415 Merrill Lynch Mortgage Investors, Inc., 7.15%, 4/25/28... 2,463
3,215 Residential Asset Securitization Trust, Series 1997-A1,
Class A1, 7.00%, 3/25/27................................ 3,227
--------
Total Mortgage Backed Securities 5,690
--------
U.S. Government Agencies (3.8%):
Fannie Mae (3.8%):
5,654 5.00%, 11/18/20.......................................... 5,592
--------
Total U.S. Government Agencies 5,592
--------
Cash Equivalents (2.9%):
4,257 Goldman Sachs Financial Square Premium................... 4,257
--------
Total Cash Equivalents 4,257
--------
</TABLE>
Continued
76
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Limited Maturity Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Purchased with Collateral (5.4%)
Repurchase Agreements (5.4%):
$ 8,071 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)............................... $ 8,071
--------
Total Short Term Securities Purchased with Collateral 8,071
--------
Total Investments (Cost $156,805) (a)--104.7% 155,199
Other assets in excess of liabilities--(4.7)% (6,990)
--------
Total Net Assets--100.0% $148,209
========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit and/or liquidity agreements. The interest rates, which will change
periodically, are based upon bank prime rates or an index of the market
interest rates. The rate reflected on the Schedule of Portfolio Investments
is the rate in effect on May 31, 1999.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $88. Cost for federal income tax purposes differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 220
Unrealized depreciation..................................... (1,914)
-------
Net unrealized depreciation................................. $(1,694)
=======
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1999.
See notes to financial statements.
77
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Intermediate Government Obligations Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Notes (44.9%):
$ 5,106 3.63%, 1/15/08(c).......................................... $ 5,012
12,450 5.75%, 11/15/00(b)......................................... 12,523
7,000 5.75%, 8/15/03(b).......................................... 7,015
5,780 6.13%, 12/31/01............................................ 5,863
6,400 6.13%, 8/15/07(b).......................................... 6,529
13,800 6.25%, 8/31/02............................................. 14,054
9,015 6.63%, 3/31/02............................................. 9,260
4,480 7.00%, 7/15/06............................................. 4,787
--------
Total U.S. Treasury Notes 65,043
--------
U.S. Government Agencies (38.4%):
Fannie Mae (23.6%):
10,000 5.63%, 3/15/01(b).......................................... 9,997
1,496 6.00%, 2/1/29.............................................. 1,423
14,000 6.39%, 9/24/07............................................. 14,107
1,000 6.50%, 2/1/28.............................................. 978
945 8.25%, 7/1/17.............................................. 987
1,015 8.50%, 2/1/25.............................................. 1,067
514 8.75%, 8/1/09.............................................. 543
2,066 9.00%, 08/01/09-01/01/10................................... 2,192
823 11.50%, 5/1/10............................................. 890
1,949 13.00%, 8/15/15............................................ 2,167
--------
34,351
--------
Federal Home Loan Bank (10.3%):
5,000 5.53%, 1/15/03............................................. 4,935
10,000 5.63%, 3/19/01(b).......................................... 9,997
--------
14,932
--------
Freddie Mac (4.4%):
5,000 7.44%, 9/20/06, Callable 9/20/01 @ 100..................... 5,159
409 8.00%, 5/1/17.............................................. 429
734 8.75%, 4/1/17.............................................. 781
--------
6,369
--------
Guaranteed Export Trust (0.1%):
157 6.61%, 6/15/99, Series 94-D................................ 157
--------
Total U.S. Government Agencies 55,809
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Obligations (4.8%):
Government National Mortgage Assoc. (4.8%):
$ 1,476 7.00%, 8/15/28............................................ $ 1,478
1,897 9.00%, 9/15/04-7/15/09.................................... 2,024
3,302 9.50%, 12/20/13-12/20/22.................................. 3,519
--------
7,021
--------
Total U.S. Government Obligations 7,021
--------
Collateralized Mortgage Obligations (10.3%):
Fannie Mae (7.9%):
1,646 7.50%, 3/25/21, Series 1992-171 ZC........................ 1,675
7,000 7.50%, 8/25/22, Series 1994-93............................ 7,250
2,471 7.75%, 3/25/21, Series 1992-1............................. 2,522
--------
11,447
--------
Residential Funding Mortgage Inc. (0.9%):
1,370 6.75%, 6/25/28 Series 1998-S13, Class A-21................ 1,334
--------
Ryland Acceptance Corp. (1.5%):
2,076 9.00%, 7/1/16............................................. 2,211
--------
Total Collateralized Mortgage Obligations 14,992
--------
Cash Equivalents (0.9%):
1,305 Goldman Sachs Financial Square Government................. 1,305
--------
Total Cash Equivalents 1,305
--------
Short Term Securities Purchased with Collateral (16.6%):
Repurchase Agreements (16.6%):
24,143 Paine Webber Triparty Agreement, 4.85%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description).................................. 24,143
--------
Total Short Term Securities Purchased with Collateral 24,143
--------
Total Investments (Cost $169,743)(a)--115.9% 168,313
Other assets in excess of liabilities--(15.9)% (23,136)
--------
Total Net Assets--100.0% $145,177
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $10. Cost for federal income tax purposes differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation..................................... $ 251
Unrealized depreciation..................................... (1,691)
-------
Net unrealized depreciation................................. $(1,440)
=======
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1999.
(c) Inflation indexed note.
See notes to financial statements.
78
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Obligations (37.8%):
Government National Mortgage Association (37.3%):
$18,420 6.00%, 11/15/28-4/15/29.................................. $ 17,481
383 6.50%, 11/15/23-12/15/23................................. 375
7,272 7.00%, 10/15/22-3/15/29.................................. 7,296
751 7.50%, 5/15/22-12/15/23.................................. 774
2,191 8.00%, 4/15/17-5/20/24................................... 2,289
1,296 8.25%, 1/15/05-6/15/16................................... 1,370
694 8.50%, 3/20/17-9/15/24................................... 733
519 8.75%, 8/15/08-6/15/17................................... 556
5,006 9.00%, 10/15/04-12/15/22................................. 5,328
1,486 9.25%, 5/15/16-5/15/21................................... 1,599
14,164 9.50%, 6/15/09-5/15/22................................... 15,272
321 10.50%, 9/15/00-12/20/04................................. 338
312 11.00%, 4/15/00-3/20/01.................................. 329
629 11.50%, 9/15/99-12/15/15................................. 703
2,630 12.00%, 7/20/99-5/15/18.................................. 3,014
4,554 12.50%, 4/15/10-1/20/16.................................. 5,282
229 12.75%, 9/20/13-12/20/14................................. 261
2,323 13.00%, 11/15/10-6/20/15................................. 2,701
2,242 13.50%, 5/15/10-6/20/15.................................. 2,658
1,874 14.00%, 5/15/11-2/15/15.................................. 2,258
40 14.50%, 9/15/12-8/15/14.................................. 48
4,453 15.00%, 6/15/11-4/15/13.................................. 5,512
50 16.00%, 11/15/11-4/15/12................................. 59
115 17.00%, 11/15/11......................................... 137
--------
76,373
--------
U.S. Treasury Bonds (0.5%):
1,000 6.25%, 8/15/23 (b)....................................... 1,020
--------
Total U.S. Government Obligations 77,393
--------
Collateralized Mortgage Obligations (38.7%):
4,621 BA Mortgage Securities, Inc., 7.25%, 10/25/27............ 4,660
210 CityFed Mortgage Trust, Series 1, Class D, 10.00%,
1/1/18.................................................. 221
2,200 Credit Suisse First Boston Mortgage, 7.24%, 4/20/07...... 2,230
1,900 Drexel Burnham Lambert, Series H, Class 4, 8.50%, 4/1/17. 1,963
5,588 Fannie Mae, 5.13%, 2/13/04 (b)........................... 5,381
12,500 Fannie Mae, 6.50%, 12/18/27.............................. 11,956
3,100 Fannie Mae, Series 1992-214 Pl, 7.50%, 5/25/21........... 3,200
2,190 Fannie Mae, Series 1992-158z, 7.75%, 3/25/21............. 2,235
3,856 Fannie Mae, Series 1992-171 Class ZD, 8.00%, 6/25/21..... 4,052
9,039 Fannie Mae, Series 1992-171z, 7.50%, 3/25/21............. 9,196
1,771 Fannie Mae, Series 1992-29z, 8.00%, 2/25/22.............. 1,854
5,000 Fannie Mae, Series 1993, Class 2, 7.35%, 3/25/21......... 5,073
3,000 Fannie Mae, Series 1994-93ph, 7.50%, 8/25/22............. 3,107
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Collateralized Mortgage Obligations, continued:
$3,000 Freddie Mac, Series 1265, Class J, 7.00%, 6/15/21........ $ 2,998
1,688 Freddie Mac, Series 1273, Class Z, 7.50%, 5/15/22........ 1,706
6,003 Freddie Mac, Series 1311, Class J, 7.50%, 9/15/21........ 6,026
1,939 General Electric Capital Mortgage Services, Inc., 6.50%,
1/25/29................................................. 1,857
629 MDC Asset Investors Trust, Series 6, Class 8, 7.00%,..... 630
1,662 Merrill Lynch Mortgage Investors, Inc., 7.15%, 4/25/28... 1,696
3,000 Morgan Stanley Capital Inc., Series 1999-Rm1, 6.71%,
12/15/31................................................ 2,998
845 Prudential Bache, Series 12, Class F, 8.49%, 10/20/20.... 900
1,690 Residential Funding Mortgage, Inc., 6.75%, 6/25/28....... 1,646
3,000 Security Mortgage Acceptance Corp.,
Series II, 9.00%, 12/1/16............................... 3,045
558 Structured Mortgage Residential Trust, 8.25%, 6/25/19.... 590
--------
Total Collateralized Mortgage Obligations 79,220
--------
U.S. Government Agencies (21.8%):
Fannie Mae (14.6%):
22,125 6.00%, 8/1/28-2/1/29..................................... 21,054
2,866 6.50%, 2/1/28-11/1/28.................................... 2,807
611 7.50%, 9/1/22-11/1/22.................................... 631
724 8.00%, 12/1/17-3/1/23.................................... 759
661 8.50%, 11/1/21-9/1/23.................................... 701
545 9.00%, 6/1/09-10/1/19.................................... 583
996 9.50%, 9/1/11............................................ 1,051
132 10.00%, 6/1/21........................................... 144
242 10.50%, 9/1/00-5/1/04.................................... 257
237 11.00%, 8/1/00-9/1/06.................................... 252
194 11.25%, 6/1/13-12/1/15................................... 217
57 11.50%, 11/1/99-2/1/01................................... 60
69 12.00%, 10/1/99-9/1/00................................... 73
841 12.50%, 2/1/00-5/1/15.................................... 971
215 14.00%, 11/1/12.......................................... 239
--------
29,799
--------
Freddie Mac (7.2%):
2,275 8.00%, 9/1/03-3/1/22..................................... 2,409
2,485 8.50%, 3/1/06-1/1/22..................................... 2,651
878 8.75%, 6/1/16-7/1/17..................................... 935
2,732 9.00%, 9/1/01-9/1/20..................................... 2,939
207 9.25%, 8/1/13-11/1/19.................................... 223
536 9.75%, 11/1/08-4/1/09.................................... 581
3,132 10.00%, 7/1/00-9/1/16.................................... 3,328
403 10.50%, 7/1/00-11/1/02................................... 427
97 11.50%, 1/1/00-1/1/01.................................... 103
127 12.00%, 11/1/99-11/1/00.................................. 137
</TABLE>
Continued
79
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
U.S. Government Income Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. Government Agencies, continued:
Freddie Mac, continued:
$ 911 12.25%, 8/1/15............................................ $ 1,053
20 12.50%, 8/1/99-4/1/01..................................... 21
--------
14,807
--------
Total U.S. Government Agencies 44,606
--------
Cash Equivalents (1.4%):
2,921 Goldman Sachs Financial Square Government................. 2,921
--------
Total Cash Equivalents 2,921
--------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Purchased with Collateral (3.2%):
Repurchase Agreements (3.2%):
$6,647 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)............................... $ 6,647
--------
Total Short Term Securities Purchased with Collateral 6,647
--------
Total Investments (Cost $212,689) (a)--103.0% 210,787
Other assets in excess of liabilities--(3.0)% (6,111)
--------
Total Net Assets--100.0% $204,676
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $1. Cost for federal income tax purposes differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $ 1,333
Unrealized depreciation...................................... (3,236)
-------
Net unrealized depreciation.................................. $(1,903)
=======
</TABLE>
(b) All or part of this security has been loaned at May 31, 1999.
See notes to financial statements.
80
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- ---------
<C> <S> <C>
U.S. Treasury Notes (4.1%):
$ 12,555 5.75%, 11/15/00(b)........................................ $ 12,630
2,890 6.13%, 8/15/07(b)......................................... 2,948
---------
Total U.S. Treasury Notes 15,578
---------
U.S. Treasury Bonds (7.0%):
16,790 6.25%, 8/15/23(b)......................................... 17,126
10,201 3.63%, 4/15/28(b)(c)...................................... 9,745
---------
Total U.S. Treasury Bonds 26,871
---------
U.S. Government Obligations (10.9%):
Government National Mortgage Assoc. (10.9%):
4,731 7.50%, 4/15/23............................................ 4,854
2,853 6.50%, 9/15/23............................................ 2,806
10,913 7.50%, 8/15/25............................................ 11,177
5,925 6.50%, 11/15/28........................................... 5,789
5,915 6.50%, 11/15/28........................................... 5,780
2,780 6.50%, 4/1/29(d).......................................... 2,715
8,992 6.50%, 4/15/29............................................ 8,781
---------
Total U.S. Government Obligations 41,902
---------
U.S. Government Agencies (16.3%):
Fannie Mae (14.6%):
1,392 9.00%, 8/1/09............................................. 1,477
2,236 9.00%, 11/1/24............................................ 2,372
1,920 8.50%, 7/1/25............................................. 2,017
730 6.50%, 8/1/27............................................. 714
107 6.50%, 9/1/27............................................. 104
105 6.50%, 10/1/27............................................ 103
694 6.50%, 10/1/27............................................ 678
784 6.50%, 12/1/27............................................ 767
33 6.50%, 12/1/27............................................ 32
741 6.50%, 12/1/27............................................ 725
122 6.50%, 12/1/27............................................ 120
2,100 6.50%, 2/1/28............................................. 2,054
10 6.00%, 7/1/28............................................. 9
13,488 6.50%, 11/1/28............................................ 13,203
5,883 6.00%, 12/1/28............................................ 5,598
49 6.50%, 12/1/28............................................ 48
584 6.00%, 3/1/29............................................. 555
11,996 6.00%, 3/1/29............................................. 11,416
6,404 6.00%, 3/1/29............................................. 6,094
4,510 6.00%, 5/1/29............................................. 4,292
3,820 6.50%, 5/1/29............................................. 3,737
---------
56,115
---------
Freddie Mac (1.7%):
825 9.00%, 5/15/20............................................ 887
1,890 9.50%, 10/1/20............................................ 2,034
3,460 7.00%, 4/1/29(d).......................................... 3,470
---------
6,391
---------
Total U.S. Government Agencies 62,506
---------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Corporate Bonds (27.1%)
Banking (3.5%):
$ 3,460 Advanta Mortgage Loan Trust, Series 1999-2, Class A4,
6.89%, 5/25/29.......................................... $ 3,451
5,610 Citicorp, 6.38%, 11/15/08................................ 5,491
2,000 First Maryland Bancorp, 7.20%, 7/1/07.................... 2,058
2,410 First Union National Bank, Series 1999-1, Class A2,
6.65%, 4/14/09.......................................... 2,391
---------
13,391
---------
Consumer Goods & Services (1.9%):
7,700 American Greetings, 6.10%, 8/1/28........................ 7,382
---------
Financial (3.7%):
3,820 Associates Corporation, 6.25%, 11/1/08................... 3,705
5,000 Ford Motor Credit Co., 6.00%, 1/14/03.................... 4,944
64,756 General Motors Acceptance Corp., Interest Only, 1.64%*,
7/15/27................................................. 5,415
---------
14,064
---------
Food Products & Services (1.0%):
3,700 Dean Foods Co., 6.63%, 5/15/09........................... 3,670
---------
Industrials (12.0%):
5,000 Archer Daniels Midland Co.,
7.50%, 3/15/27.......................................... 5,269
4,950 Brunswick Corp., 6.75%, 12/15/06......................... 4,789
9,000 Computer Assoc. International,
6.25%, 4/15/03.......................................... 8,730
2,000 Cummins Engine, Inc., 6.45%, 3/1/05...................... 1,920
5,095 Halliburton Co., 5.63%, 12/1/08.......................... 4,789
4,810 Lubrizol Corp., 5.88%, 12/1/08........................... 4,467
5,800 Monsanto Co., 5.38%, 12/1/01............................. 5,699
2,875 Motorola, Inc., 7.50%, 5/15/25........................... 2,997
7,500 Williams Cos., Inc., 6.20%, 8/1/02....................... 7,434
---------
46,094
---------
Real Estate Investment Trust (1.5%):
1,325 Avalon Bay Communities, 6.58%, 2/15/04................... 1,294
3,650 Simon Debartolo Property Group, Inc., 6.63%, 6/15/03..... 3,476
950 Simon Debartolo Property Group, Inc., 6.75%, 2/9/04...... 923
---------
5,693
---------
Telecommunications (3.5%):
4,515 AT&T Corp., 6.50%, 3/15/29............................... 4,205
4,350 Cable & Wireless Communication, Inc., 6.75%, 12/8/08..... 4,241
5,200 Sprint Capital, 6.88%, 11/15/28.......................... 4,894
---------
13,340
---------
Total Corporate Bonds 103,634
---------
</TABLE>
Continued
81
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Bond Fund
(Amounts in Thousands)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Asset Backed Securities (18.3%):
$ 5,363 Amresco Securitized Net Interest Margin, Series 1999-1a,
Class A, 9.10%, 9/27/29................................. $ 5,296
3,222 EQCC Home Equity Loan Trust,
5.73%, 12/15/08......................................... 3,170
6,000 Equivantage Home Equity Loan Trust, 7.05%, 12/25/28...... 5,870
5,260 First Security Auto Owner Trust,
5.74%, 6/15/04.......................................... 5,200
6,090 General Electric Capital Mortgage Services, Inc., 6.19%,
1/25/23................................................. 6,056
14,300 General Electric Corp., 6.18%, 6/25/15................... 14,311
1,450 Green Tree Home Improvement Loan Trust, 7.85%, 7/15/09... 1,440
7,790 IMC Home Equity Loan Trust,
6.76%, 10/20/20......................................... 7,848
8,140 Newcourt Receivables Asset Trust,
6.19%, 5/20/05.......................................... 8,110
4,780 PALS, 6.30%, 3/25/29..................................... 4,707
8,000 Residential Asset Securities Corp.,
5.91%, 8/25/22.......................................... 7,903
---------
Total Asset Backed Securities 69,911
---------
Mortgage Backed Securities (15.9%):
9,000 Credit Suisse First Boston, 7.24%, 4/20/07............... 9,121
3,608 General Electric Capital Mortgage Services, Inc., 6.50%,
1/25/29................................................. 3,456
3,460 Heller Financial Commercial Mortgage Asset, Series 1999-
Ph1, Class A-1, 6.50%, 5/15/31.......................... 3,447
4,841 Housing Securities, Inc., 7.50%, 1/25/09................. 4,913
1,200 Housing Securities, Inc., 7.50%, 3/25/09................. 1,221
19,430 JP Morgan Commercial Mortgage Finance Corp., Interest
Only, 1.38%*, 12/26/28.................................. 1,161
4,852 Morgan Stanley Capital, Inc.,
6.71%, 12/15/31......................................... 4,848
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- ---------
<C> <S> <C>
Mortgage Backed Securities, continued:
$ 6,000 Morgan Stanley Capital, Inc.,
6.53%, 3/15/32.......................................... $ 5,919
6,418 PNC, Series 98-7, Class A5, 6.75%, 9/25/28............... 6,244
6,934 Prudential Securities Secured Financing Corp., 6.07%,
1/15/08................................................. 6,798
10,355 Residential Accredit Loans, Inc.,
6.50%, 3/25/29.......................................... 9,916
3,750 Residential Funding Mortgage, Inc.,
6.75%, 6/25/28.......................................... 3,652
---------
Total Mortgage Backed Securities 60,696
---------
Cash Equivalents (0.4%):
1,463 Goldman Sachs Financial Square Premium................... 1,463
---------
Total Cash Equivalents 1,463
---------
Short Term Securities Purchased with Collateral (12.8%):
Floating Rate Note (9.2%):
10,000 Merrill Lynch, 5.05%, 10/4/99............................ 10,000
10,000 Merrill Lynch, 5.21%, 2/28/00............................ 10,000
15,000 Salomon Smith Barney Holding Co.,
5.00%, 10/28/99......................................... 15,000
---------
35,000
---------
Repurchase Agreements (3.6%):
13,859 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................. 13,859
---------
Total Short Term Securities Purchased with Collateral 48,859
---------
Total Investments (Cost $440,098)(a)--112.7% 431,420
Other assets in excess of liabilities--(12.7)% (48,726)
---------
Total Net Assets--100.0% $ 382,694
=========
</TABLE>
- -------
* Variable rate securities having liquidity sources through bank letters of
credit or other credit and/or liquidity agreements. The interest rate, which
will change periodically, is based upon an index of market rates. The rate
reflected on the Schedule of Portfolio Investments is the rate in effect at
May 31, 1999.
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $587. Cost for federal income tax purposes differs from value by net
unrealized depreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation.................................... $ 967
Unrealized depreciation.................................... (10,232)
--------
Net unrealized depreciation................................ $ (9,265)
========
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1999.
(c) Inflation indexed bond.
(d) On May 31, 1999, the total cost of investments purchased on a when-issued
basis was $6,205.
See notes to financial statements.
82
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Municipal Bond Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (98.6%):
Arizona (2.0%):
$ 2,000 Tempe, 5.00%, 7/1/04...................................... $ 2,088
--------
Colorado (1.0%):
1,000 Jefferson County School District, 5.25%, 12/15/05, MBIA... 1,060
--------
Connecticut (8.0%):
1,000 Connecticut, 5.50%, 3/15/11............................... 1,074
1,880 Connecticut, 5.00%, 3/15/07............................... 1,967
2,000 Connecticut Special Tax Obligation, 5.38%, 9/1/08......... 2,134
1,770 Connecticut Clean Water Fund, 6.38%, 6/1/05............... 1,986
1,000 Stamford, 5.00%, 7/15/08.................................. 1,049
--------
8,210
--------
Delaware (2.4%):
1,000 Delaware Transportation Authority, 7.80%, 7/1/04, ETM..... 1,118
1,250 Delaware Transportation Authority, 6.00%, 7/1/06, AMBAC... 1,373
--------
2,491
--------
Florida (7.0%):
1,630 Dade County School District, 6.50%, 2/15/06, MBIA......... 1,836
1,000 Florida State Department of Transportation G.O., 6.00%,
7/1/07................................................... 1,108
135 Florida Board of Education Capital Outlay, 9.13%, 6/1/14,
ETM...................................................... 188
2,000 Florida Board of Education, Series G, 6.90%, 5/1/03, ETM.. 2,209
1,000 Gulf Breeze, Revenue, 3.39%*, 12/1/17..................... 905
1,000 Tampa Sports Authority Revenue, 6.00%, 1/1/06, MBIA....... 1,099
--------
7,345
--------
Georgia (3.4%):
1,200 Fayette County School District, G.O., 6.25%, 3/1/04....... 1,308
2,000 Georgia, 6.60%, 4/1/05.................................... 2,250
--------
3,558
--------
Guam (1.5%):
1,505 Government Highway Revenue, Series A, 5.90%, 5/1/02, CGIC. 1,592
--------
Idaho (1.7%):
1,560 Canyon County School District, G.O., 8.13%, 7/30/03, MBIA. 1,810
--------
Kansas (1.1%):
1,000 Kansas State Department of Transportation & Highway,
7.25%, 3/1/04............................................ 1,135
--------
Kentucky (3.3%):
3,000 Kentucky Turnpike Authority, 6.50%, 7/1/07, AMBAC......... 3,424
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Maryland (5.2%):
$ 1,150 Howard County, Series A, G.O., 5.00%, 2/15/08............. $ 1,200
1,000 Montgomery County, G.O., 5.70%, 7/1/05.................... 1,084
3,000 Montgomery County, G.O., 4.88%, 5/1/09.................... 3,098
--------
5,382
--------
Massachusetts (1.1%):
1,000 Massachusettes G.O., 5.75%, 8/1/08, FGIC.................. 1,099
--------
Minnesota (4.1%):
2,000 Minnesota Public Facilities Water & Pollution, 5.00%,..... 2,091
1,000 Minnesota, 6.00%, 5/1/06.................................. 1,101
1,000 North Saint Paul Maplewood, 6.88%, 2/1/15, Prerefunded
2/1/05 @ 100, MBIA....................................... 1,131
--------
4,323
--------
Missouri (4.7%):
1,535 Kansas City, G.O., 6.00%, 2/1/04.......................... 1,656
1,000 Missouri G.O., Series A, 6.00%, 4/1/02.................... 1,059
1,545 Missouri State Environmental Authority Water Revenue,
6.00%, 1/1/07............................................ 1,703
495 Missouri State Environment Authority Revolving Fund, Water
Pollution Control, 7.00%, 10/1/10........................ 523
--------
4,941
--------
New Mexico (2.1%):
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/05.................. 1,089
1,000 Albuquerque Water & Sewer, 6.00%, 7/1/07.................. 1,104
--------
2,193
--------
New York (4.6%):
1,000 Municipal Assistance Corp. for New York City, 6.00%,
7/1/04................................................... 1,086
995 New York City G.O., 8.00%, 4/1/03, AMBAC, ETM............. 1,136
1,005 New York City G.O., 8.00%, 4/1/03, AMBAC.................. 1,143
1,365 New York City, Transitional Financial Authority Revenue,
5.50%, 8/15/07........................................... 1,464
--------
4,829
--------
North Carolina (4.0%):
3,000 Mecklenburg County, G.O., 5.10%, 3/1/05................... 3,131
1,000 North Carolina G.O., 5.10%, 3/1/05........................ 1,050
--------
4,181
--------
Ohio (5.5%):
795 Cleveland City School District, 8.00%, 12/1/01, ETM....... 875
820 Cleveland, OH, 0.00%, 12/1/12, Capital Appreciation....... 386
820 Cleveland, OH, 0.00%, 12/1/15, Capital Appreciation....... 321
</TABLE>
Continued
83
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Municipal Bond Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Ohio, continued:
$ 815 Cleveland, OH, 0.00%, 12/1/16, Capital Appreciation........ $ 301
1,920 Ohio Housing Financial Agency Single Family, Mortgage
Revenue, 0.00%, 1/15/15, Prerefunded 1/15/13 @ 81.879..... 799
1,715 Ohio State Water Development Authority, 6.00%, 6/1/07...... 1,894
1,110 University of Cincinnati, General Receipts, Series T,
5.50%, 6/1/11............................................. 1,188
--------
5,764
--------
Oregon (7.6%):
1,000 Deschutes & Jefferson School District, G.O., 6.00%, 6/1/03,
MBIA...................................................... 1,078
1,435 Lane County School District, G.O., 6.00%, 1/1/04........... 1,546
1,500 Portland Sewer Revenue, 5.00%, 6/1/04, FGIC................ 1,563
1,220 Washington County School District G.O., 7.80%, 6/1/04...... 1,420
2,000 Washington County Sewer Revenue, 5.75%, 10/1/08, FGIC...... 2,197
--------
7,804
--------
Puerto Rico (6.5%):
5,000 Puerto Rico Electric Power Authority, 6.50%, 7/1/06, MBIA.. 5,687
1,000 University of Puerto Rico, 6.25%, 6/1/07, MBIA............. 1,128
--------
6,815
--------
Rhode Island (1.1%):
1,130 Rhode Island G.O., 5.00%, 8/1/06........................... 1,178
--------
South Carolina (2.1%):
2,095 Cherokee County School District G.O., 5.50%, 3/1/05, MBIA.. 2,239
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Tennessee (6.9%):
$ 1,290 Memphis, G.O., 6.00%, 11/1/03............................. $ 1,396
1,435 Metro Government Nashville and Davidson County, 5.25%,
5/15/07.................................................. 1,514
2,000 Shelby County, G.O., 5.00%, 8/1/06........................ 2,088
2,000 Tennessee, G.O., 6.00%, 5/1/05............................ 2,190
--------
7,188
--------
Texas (2.0%):
1,000 Dallas County G.O., 5.00%, 8/15/04........................ 1,044
1,000 Dallas, G.O., 6.13%, 2/15/07, Prerefunded 2/15/03 @ 100... 1,072
--------
2,116
--------
Utah (2.0%):
2,000 Utah State G.O., 5.50%, 7/1/04............................ 2,135
--------
Vermont (1.4%):
1,355 Burlington Electric Revenue Bond, 6.00%, 7/1/07, MBIA..... 1,497
--------
Virginia (1.0%):
1,000 Newport News G.O., 5.00%, 3/1/05.......................... 1,044
--------
Washington (2.0%):
1,000 King County G.O., 6.10%, 12/1/01.......................... 1,002
1,000 Seattle Water Revenue, 5.00%, 12/1/03..................... 1,041
--------
2,043
--------
Wisconsin (3.3%):
2,000 Milwaukee G.O., 6.00%, 2/1/07............................. 2,220
1,170 Wisconsin G.O., 5.25%, 5/1/07............................. 1,236
--------
3,456
--------
Total Municipal Bonds 102,940
--------
Investment Companies (1.3%):
1,327,364 Provident Institutional Muni Cash Fund.................... 1,327
--------
Total Investment Companies 1,327
--------
Total Investments (Cost $101,827)(a)--99.9% 104,267
Other assets in excess of liabilities--0.1% 56
--------
Total Net Assets--100.0% $104,323
========
</TABLE>
- -------
* Variable rate security. Interest rate changes every six months based on
percentage change in the Consumer Price Index plus a predetermined spread.
(a) Cost for federal income tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $2,611
Unrealized depreciation....................................... (171)
------
Net unrealized appreciation................................... 2,440
======
</TABLE>
AMBAC--American Municipal Bond Assurance Corp.
CGIC--Capital Guarantee Insurance Corp.
ETM--Escrowed to Maturity
FGIC--Federal Guarantee Insurance Corp.
G.O.--General Obligation
MBIA--Municipal Bond Insurance Association
See notes to financial statements.
84
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds (98.2%):
Michigan (90.6%):
$ 2,000 Brighton School District, Series II, 0.00%, 5/1/11, AMBAC. $ 1,115
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/08, MBIA.... 1,751
1,380 Byron Center Public Schools, G.O., 8.25%, 5/1/09, MBIA.... 1,765
1,000 Chippewa Valley School District, 7.00%, 5/1/11,
Prerefunded 5/1/01 @ 102 ................................ 1,078
2,375 Chippewa Valley School District, G.O., 7.80%, 5/1/01...... 2,547
1,285 Chippewa Valley School District, Refunding Bonds, 6.00%,
5/1/08, AMBAC ........................................... 1,425
1,000 Clarkston Community Schools, 6.25%, 5/1/05, FGIC.......... 1,105
1,000 Clarkston Community Schools, Refunding Bonds, 5.00%,
5/1/08, AMBAC ........................................... 1,036
1,150 Clinton Township Building Authority, 4.80%, 11/1/13....... 1,140
1,100 Dearborn School District, 8.38%, 5/1/01, Prerefunded
5/1/00 @ 102 ............................................ 1,171
2,000 Detroit Revenue Bonds, G.O., 5.25%, 5/1/08, AMBAC......... 2,095
1,600 Detroit, 6.25%, 7/15/11, AMBAC............................ 1,798
1,000 Detroit, 5.50%, 4/1/08, MBIA.............................. 1,065
1,415 Detroit, Refunding Bonds, 5.50%, 4/1/07, MBIA............. 1,505
1,000 Detroit Michigan City School District, 5.00%, 5/1/10,
FGIC..................................................... 1,028
1,065 Detroit Local Development Financing Authority, 5.50%...... 1,110
1,000 Detroit Sewage Disposal Revenue, Series B, 6.00%, 7/1/09,
MBIA .................................................... 1,114
1,380 Detroit Sewage Disposal Revenue, 6.00%, 7/1/10, MBIA...... 1,528
2,500 Detroit Sewage Disposal Revenue, 6.00%, 7/1/07, MBIA...... 2,769
1,000 Detroit Water, 6.50%, 7/1/15, FGIC........................ 1,168
2,000 Detroit Water Supply Systems, 5.40%, 7/1/10, MBIA......... 2,123
2,250 Detroit Water Supply Systems, Series B, 5.55%, 7/1/12..... 2,405
1,000 Detroit Water Supply Systems, Series A, 6.00%, 7/1/13..... 1,111
1,375 East Lansing Building Authority, 6.90%, 10/1/11........... 1,417
1,350 Ecorse Public School, 6.50%, 5/1/07, FGIC................. 1,534
2,000 Farmington School District, 5.00%, 5/1/03................. 2,075
1,000 Farmington School District, 5.00%, 5/1/06................. 1,043
1,110 Flint, 6.00%, 11/1/04, MBIA............................... 1,210
1,000 Forest Hills School District, G.O., 5.00%, 5/1/12......... 1,025
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,125 Goodrich Area School District, G.O., 7.65%, 5/1/11,
Prerefunded 5/1/05 @ 102, AMBAC.......................... $ 1,342
1,235 Grand Haven Public Schools, G.O., 7.00%, 5/1/07, MBIA..... 1,440
1,000 Grand Haven Electric, 5.20%, 7/1/06, MBIA................. 1,054
2,655 Grand Ledge Public School District, 5.25%, 5/1/09, MBIA... 2,791
1,250 Grand Ledge Public School District, G.O., 5.45%, 5/1/11,
MBIA .................................................... 1,325
1,570 Grand Rapids Building Authority, 5.00%, 4/1/15............ 1,580
1,925 Grand Rapids School District, G.O., 5.00%, 5/1/06,
Callable 5/1/01 @ 102 ................................... 1,985
1,535 Grand Rapids Sanitation Sewer System, Series A, 5.38%,
1/1/16, FGIC ............................................ 1,585
500 Grand Rapids Water Supply, 7.00%, 1/1/12, Callable 1/1/00
@ 102 ................................................... 521
210 Grand Valley, Michigan State, 7.88%, 10/1/08.............. 215
1,500 Greater Detroit Resources Recovery, 6.25%, 12/13/08, AMBAC
......................................................... 1,691
600 Holt School District, G.O., 8.75%, 5/1/00................. 629
600 Holt School District, G.O., 8.75%, 5/1/01................. 655
1,000 Huron Valley School District, 5.75%, 5/1/06, FGIC......... 1,084
1,000 Jenison Public Schools G.O., 5.25%, 5/1/12, FGIC.......... 1,041
1,650 Kalamazoo, G.O., 6.20%, 10/1/06, Callable 10/1/02 @ 101.5. 1,780
2,000 Kalamazoo Hospital Authority, 6.25%, 7/1/04, Callable
7/1/99 @ 100, FGIC ...................................... 2,004
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, 6.13%, 7/1/07, FGIC ............................. 2,140
1,440 Kalamazoo Hospital Finance Authority, Bronson Hospital,
5.88%, 5/15/03 .......................................... 1,535
2,000 Kalamazoo Hospital Finance Authority, Borgess Medical
Center, Series A, 6.00%, 6/1/03, FGIC ................... 2,143
1,000 Kalamazoo Public Library, 5.20%, 5/1/11, MBIA............. 1,038
3,000 Kent County, G.O., 5.00%, 11/1/06......................... 3,134
1,000 Kent Hospital Finance Authority, Revenue Bonds, 5.10%,
1/15/07 ................................................. 1,036
5,000 Kent County Hospital Authority, Butterworth Hospital,
Series A, 7.25%, 1/15/13 ................................ 6,099
500 Kentwood School District, 5.90%, 5/1/04, Prerefunded
5/1/02 @ 102 ............................................ 536
500 Kentwood School District, 5.90%, 5/1/04................... 534
2,000 Lake Orion County School District, G.O., 7.00%, 5/1/20,
Prerefunded 5/1/05 @ 101, AMBAC ......................... 2,303
</TABLE>
Continued
85
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,335 Lansing, G.O., 6.00%, 1/1/07.............................. $ 1,469
1,000 Lansing Building Authority, 6.00%, 6/1/04, Callable 6/1/00
@ 102, ETM .............................................. 1,040
2,000 Lansing School District, G.O., 6.88%, 5/1/09, Prefunded
5/1/05 @ 100 ............................................ 2,275
1,000 Lansing, G.O., 6.00%, 10/1/02............................. 1,065
1,000 Livonia School District, G.O., 6.35%, 5/1/04, Callable
5/01/02 @ 102 ........................................... 1,081
1,000 Municipal Bond Authority, Local Government Program, 6.90%,
5/1/99 .................................................. 1,014
1,000 Local Government Loan Program, 6.20%, 5/1/04, AMBAC....... 1,094
2,000 State Recreation Program, G.O., 5.75%, 11/1/01............ 2,093
1,000 State Environmental Protection Program, G.O., 6.25%,
11/1/07, Prerefunded 11/1/02 @ 102 ...................... 1,091
3,250 State Environmental Protection Program, G.O., 6.25%,
11/1/12 ................................................. 3,700
3,000 State Environmental Protection Program, G.O., 5.50%,
11/1/05 ................................................. 3,213
1,500 State, G.O., 5.00%, 12/1/03............................... 1,564
1,000 State Building Authority, Series II, 6.40%, 10/1/04,
Callable 10/1/01 @ 102 .................................. 1,071
3,475 State Building Authority, 6.25%, 10/1/03, AMBAC........... 3,782
1,000 State Building Authority, 7.25%, 10/1/08, Prerefunded
10/1/99 @ 100 ........................................... 1,013
1,020 State Building Authority, Michigan University Adult
General Hospital, 7.00%, 12/1/08, Prerefunded 12/1/02 @
100 ..................................................... 1,125
1,000 State Building Authority, 6.25%, 10/1/00, AMBAC........... 1,036
300 Michigan State Building Authority Revenue, 4.10%, 10/1/00. 302
2,000 State Building Authority Revenue, 5.50%, 10/15/05......... 2,143
1,000 Michigan State Building Authority Revenue, Series 2,
5.00%, 10/15/14, Callable ............................... 1,001
1,600 Comprehensive Transportation, Series B, 5.40%, 5/15/01.... 1,650
1,135 State Hospital Finance Authority, Harper Grace Hospital,
7.12%, 5/1/09, ETM ...................................... 1,285
1,000 Housing Development Authority, Series A, 6.45%, 6/1/04,
Callable 6/1/02 @ 102 ................................... 1,055
1,200 State Hospital Finance Authority, Oakwood Hospital, Series
A, 5.00%, 11/1/03, FGIC ................................. 1,247
5,000 State Hospital Finance Authority, Sisters of Mercy, 5.38%,
8/15/14, MBIA ........................................... 5,268
500 State Hospital Authority, Henry Ford, 6.00%, 9/1/11,
AMBAC.................................................... 558
2,000 State Hospital Authority, Henry Ford, 6.00%, 9/1/12,
AMBAC.................................................... 2,228
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 1,000 State Hospital Revenue Bonds, 6.00%, 8/15/02.............. $ 1,061
1,000 State Housing Development, 6.63%, 10/15/06, Callable
10/15/02 @ 103, FSA ..................................... 1,083
1,525 Housing Development Authority, AMT, 5.75%, 10/1/04, AMBAC
......................................................... 1,620
1,055 State South Central Power Agency, 5.70%, 11/1/04, MBIA.... 1,137
2,000 State South Central Power Agency, 5.80%, 11/1/05, MBIA.... 2,175
5,950 Strategic Fund (Ford), 7.10%, 2/1/06...................... 6,842
3,000 Strategic Fund (Detroit Edison), 7.00%, 7/15/08, MBIA..... 3,554
2,000 Strategic Fund (Detroit Edison), 6.95%, 5/1/11, FGIC...... 2,398
500 State Trunk Line, 6.80%, 8/15/02, Prerefunded 8/15/99 @
102...................................................... 513
1,005 State Trunk Line, 6.25%, 11/1/03, FGIC.................... 1,095
1,000 Michigan State Trunk Line, Series A, 5.25%, 11/1/12....... 1,043
2,000 State Underground Storage, 6.00%, 5/1/04, AMBAC........... 2,170
1,000 State Underground Storage, 6.00%, 5/1/05, AMBAC........... 1,093
1,000 Michigan State University, Series A, 5.70%, 8/15/03,
Callable 8/15/02 @ 101 .................................. 1,063
2,075 Mona Shores School District, G.O., 6.75%, 5/1/09, FGIC.... 2,428
1,000 Oakland, University of Michigan, 5.00%, 5/15/05, AMBAC.... 1,041
1,000 Oakland County Community College, 6.65%, 5/1/11........... 1,093
1,000 Paw Paw Public School District, G.O., 6.50%, 5/1/09, FGIC. 1,150
1,000 Plymouth-Canton School District, 6.50%, 5/1/05,
Prerefunded 5/1/01 @ 101 ................................ 1,060
2,000 Rochester School District, 6.30%, 5/1/04, Prerefunded
5/1/02 @ 100 ............................................ 2,130
1,000 Rochester School District, 6.50%, 5/1/07, Prerefunded
5/1/02 @ 100 ............................................ 1,071
1,000 Rochester Community School District, 5.25%, 5/1/04, FGIC.. 1,049
1,000 Rochester, 5.75%, 5/1/08, MBIA............................ 1,091
1,135 Rockford School District, 5.75%, 5/1/07, Callable 5/1/02 @
102 ..................................................... 1,207
400 Rockford School District, Refunding Bonds, 6.00%, 5/1/07,
FGIC .................................................... 442
2,260 Romeo Community School District, 5.25%, 5/1/06, FGIC...... 2,384
2,120 Royal Oak Hospital Financial Authority, William Beaumont
Hospital, Series G, 6.00%, 11/15/02 ..................... 2,266
</TABLE>
Continued
86
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Michigan Municipal Bond Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Michigan, continued:
$ 955 St. Johns Public Schools, 5.00%, 5/1/21, FGIC............. $ 937
1,000 Traverse City Public Schools, 7.00%, 5/1/05, Prerefunded
5/1/01 @ 101.5 .......................................... 1,074
1,000 Troy School District, 7.75%, 5/1/01, Prerefunded 5/1/00 @
102 ..................................................... 1,060
1,000 University of Michigan, Student Fees, 5.00%, 4/1/02....... 1,034
2,000 University of Michigan, Student Fees, Series B, 5.60%,
4/1/08, Callable 4/1/03 @ 102 ........................... 2,130
2,000 University of Michigan Hospital Revenue Bonds, 7.00%,
12/1/21, Prerefunded 12/1/00 @ 102 ...................... 2,140
500 University of Michigan, 6.00%, 4/1/05..................... 547
1,315 University of Michigan, Student Fees, Series A, 6.00%,.... 1,453
1,975 Utica School District, 5.60%, 5/1/05...................... 2,121
285 Wayne County Airport Revenue, AMT, 7.25%, 12/1/10, AMBAC . 302
2,000 Wayne County Building Authority, 6.00%, 6/1/07, Callable
6/1/06 @ 102, MBIA ...................................... 2,210
1,985 West Ottawa, 6.00%, 5/1/06, FGIC.......................... 2,181
1,500 Western Michigan University, Series A, 5.40%, 7/15/08,
Callable 7/15/03 @ 105, FGIC ............................ 1,573
1,680 Western Michigan School District, 5.90%, 5/1/10, MBIA..... 1,854
1,000 Western Township Utilities Authority, 6.00%, 1/1/00, FSA.. 1,015
1,000 Wyandotte City School District, G.O., 6.90%, 5/1/16,
Prerefunded 5/1/01 @ 102 ................................ 1,076
3,000 Wyandotte Electric Revenue, 6.25%, 10/1/08, MBIA.......... 3,359
--------
203,264
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Municipal Bonds, continued:
Puerto Rico (6.9%):
$ 500 Commonwealth, G.O., 6.25%, 7/1/12,
MBIA..................................................... $ 574
4,000 Commonwealth, G.O., 6.25%, 7/1/09,
MBIA..................................................... 4,559
2,000 Commonwealth, G.O., 6.25%, 7/1/10,
MBIA..................................................... 2,283
1,000 Commonwealth, Aqueduct & Sewer Authority, 6.00%, 7/1/07,
MBIA .................................................... 1,113
4,000 Public Buildings Authority, 5.50%, 7/1/07, FSA............ 4,315
1,250 Electric Power Authority, Series W, 6.50%, 7/1/05, MBIA... 1,408
1,000 University of Puerto Rico, 6.25%, 6/1/07, MBIA............ 1,128
--------
15,380
--------
Virgin Islands (0.7%):
1,340 Public Finance Authority, 7.00%, 10/1/04, ETM............. 1,472
--------
Total Municipal Bonds 220,116
--------
Investment Companies (1.1%):
2,431,778 Federated Michigan Tax Free Money Market.................. 2,432
--------
Total Investment Companies 2,432
--------
Total Investments (Cost $212,214) (a)--99.3% 222,548
--------
Other assets in excess of liabilities--0.7% 1,510
--------
Total Net Assets--100.0% $224,058
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $19. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $10,578
Unrealized depreciation...................................... (263)
-------
Net unrealized appreciation.................................. 10,315
=======
</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.
87
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (28.8%):
Advertising (0.1%):
75 Doubleclick, Inc.(b)...................................... $ 7
500 Valassis Communications, Inc.(b).......................... 18
--------
25
--------
Apparel/Shoes (0.0%):
300 Tarrant Apparel Group(b).................................. 9
--------
Banking (0.5%):
100 Cullen/Frost Bankers, Inc................................. 6
2,000 Republic Security Financial Corp. ........................ 17
900 State Street Corp......................................... 68
--------
91
--------
Broadcasting/Cable (0.3%):
1,300 Comcast Corp.--Class A.................................... 50
--------
Business Services (1.0%):
1,800 Automatic Data Processing, Inc............................ 74
1,600 Ceridian Corp............................................. 53
150 Corporate Executive Board Corp.(b)........................ 4
500 Diamond Technology Partners, Inc.(b)(c)................... 12
300 FYI, Inc.(b).............................................. 8
400 NOVA Corp.(b)............................................. 9
400 Onesource Information Services, Inc.(b)................... 4
300 QRS Corp.(b).............................................. 22
500 Sykes Enterprises, Inc.(b)................................ 16
--------
202
--------
Chemicals (0.4%):
500 Macdermid, Inc. .......................................... 20
1,200 Monsanto Co............................................... 50
--------
70
--------
Commercial Services (0.1%):
500 Iron Mountain, Inc.(b).................................... 14
--------
Computer Hardware (1.2%):
1,200 Dell Computer Corp.(b).................................... 41
700 EMC Corp.................................................. 69
400 IBM....................................................... 47
700 Mercury Computer Systems, Inc.(b)......................... 14
1,000 Sun Microsystems, Inc.(b)................................. 60
--------
231
--------
Computer Services (0.6%):
200 Checkfree Holdings Corp.(b)............................... 9
200 CMGI, Inc.(b)............................................. 21
500 Credence Systems Corp.(b)................................. 15
300 E*Trade Group, Inc.(b).................................... 13
200 Infospace.com, Inc.(b).................................... 9
500 National Data Corp........................................ 24
200 Pegasus Systems, Inc.(b).................................. 7
100 Safeguard Scientifics, Inc.(b)............................ 7
500 Unigraphics Solutions, Inc.(b)............................ 8
--------
113
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Computer Software & Peripherals (1.3%):
500 Ardent Software, Inc.(b).................................. $ 10
900 INSpire Insurance Solutions(b)............................ 16
200 Intervu, Inc.(b).......................................... 7
200 Mercury Interactive Corp.(b).............................. 7
300 Micromuse, Inc.(b)........................................ 12
2,100 Microsoft, Inc.(b)........................................ 169
300 National Computer Systems, Inc............................ 9
600 Smart Modular Technologies(b)............................. 9
400 Worldgate Communications, Inc.(b)......................... 15
--------
254
--------
Consumer Goods & Services (1.1%):
400 Colgate Palmolive Co...................................... 40
800 Gillette Co............................................... 41
500 JAKKS Pacific, Inc.(b).................................... 14
1,300 Procter & Gamble Co....................................... 121
--------
216
--------
Diversified Operations (0.8%):
1,800 Tyco International Ltd. .................................. 157
--------
Educational Services (0.0%):
500 School Specialty, Inc.(b)................................. 7
--------
Electric Utilities (0.1%):
300 Calpine Corp.(b).......................................... 16
--------
Electronic Components/Instruments (1.3%):
400 Burr-Brown Corp.(b)....................................... 13
400 CTS Corp.................................................. 22
600 DII Group, Inc.(b)........................................ 20
1,300 General Electric Co....................................... 132
900 Gentex Corp.(b)........................................... 27
200 Optical Coating Laboratory, Inc. ......................... 13
300 SDL, Inc.(b).............................................. 28
--------
255
--------
Environmental Services (0.4%):
500 Casella Waste Systems, Inc., Series A(b).................. 10
1,500 Waste Management, Inc.(c)................................. 79
--------
89
--------
Financial Services (1.6%):
500 Affiliated Managers Group(b).............................. 15
800 American Express Co. ..................................... 98
1,050 Amresco, Inc.(b).......................................... 7
1,500 Freddie Mac............................................... 87
3,050 MBNA Corp................................................. 84
400 Metris Cos., Inc.......................................... 23
--------
314
--------
Food & Beverage (0.3%):
800 The Coca-Cola Co.......................................... 55
--------
</TABLE>
Continued
88
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Food Products & Services (0.6%):
400 Kroger Co.(b)............................................. $ 23
2,200 Safeway, Inc.(b).......................................... 103
--------
126
--------
Health Care - Services (0.5%):
800 American Retirement Corp.(b)(c)........................... 14
1,050 Hooper Holmes, Inc........................................ 19
400 Laser Vision Centers, Inc.(b)............................. 23
400 Medquist, Inc.(b)......................................... 15
100 Minimed, Inc.(b).......................................... 6
300 NCS Healthcare, Inc.(b)................................... 4
700 Priority Healthcare Corp., Class B(b)..................... 23
--------
104
--------
Home Building (0.0%):
600 Standard Pacific Corp..................................... 8
--------
Home Furnishings (0.1%):
375 Ethan Allen Interiors, Inc................................ 12
--------
Industrial Goods & Services (0.4%):
1,200 United Technologies Corp.................................. 74
--------
Insurance (0.9%):
1,196 American International Group, Inc......................... 137
900 Annuity & Life Re......................................... 23
1,050 Scottish Annuity & Life Holdings.......................... 10
--------
170
--------
Leisure (0.0%):
250 Cheap Tickets, Inc.(b).................................... 8
--------
Manufacturing - Consumer Goods (0.1%):
500 Monaco Coach Corp.(b)..................................... 15
--------
Manufacturing - Capital Goods (0.2%):
300 Astec Industries, Inc.(b)................................. 11
900 Motivepower Industries, Inc.(b)........................... 16
600 Wabash National Corp...................................... 11
--------
38
--------
Medical Equipment & Supplies (0.5%):
500 Biomatrix, Inc.(b)........................................ 15
400 Gliatech, Inc.(b)......................................... 10
300 Guidant Corp.............................................. 15
900 Medtronic, Inc............................................ 64
--------
104
--------
Metals & Mining (0.1%):
400 Stillwater Mining Co.(b).................................. 13
--------
Office Equipment & Services (0.7%):
600 Hewlett-Packard Co........................................ 57
300 Pitney Bowes, Inc......................................... 19
1,200 Xerox Corp................................................ 67
--------
143
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Oilfield Services & Equipment (0.2%):
300 Cal Dive International, Inc.(b)........................... $ 7
500 Schlumberger Ltd.......................................... 30
--------
37
--------
Pharmaceuticals (3.0%):
300 Alpharma, Inc., Class A................................... 8
500 Bristol Myers Squibb Co................................... 34
1,600 Eli Lilly & Co............................................ 114
500 Geltex Pharmaceuticals, Inc.(b)........................... 9
650 Johnson & Johnson......................................... 60
750 King Pharmaceuticals, Inc.(b)............................. 18
200 Merck & Co., Inc. ........................................ 14
1,250 Pfizer, Inc. ............................................. 133
1,800 Schering Plough Corp...................................... 81
1,950 Warner-Lambert Co. ....................................... 121
--------
592
--------
Radio (0.1%):
600 Citadel Communications(b)................................. 17
--------
Resorts & Entertainment (1.1%):
2,000 Carnival Cruise Lines..................................... 82
550 Premier Parks, Inc.(b)(c)................................. 20
1,800 Time Warner, Inc. ........................................ 122
--------
224
--------
Restaurants (0.1%):
600 Foodmaker, Inc.(b)........................................ 16
--------
Retail (3.0%):
300 Ames Department Stores, Inc.(b)........................... 12
300 BJ's Wholesale Club, Inc.(b).............................. 8
750 Costco Companies, Inc.(b)................................. 54
1,600 CVS Corp.................................................. 74
1,500 Dayton Hudson Corp........................................ 95
2,750 Home Depot, Inc........................................... 157
500 The Children's Place(b)................................... 19
500 The Men's Wearhouse, Inc.(b).............................. 13
2,000 Wal-Mart.................................................. 85
4,200 Walgreen Co............................................... 98
--------
615
--------
Semiconductors (1.0%):
900 Aeroflex, Inc.(b)......................................... 13
400 ATMI, Inc.(b)............................................. 9
600 Cymer, Inc.(b)............................................ 11
1,800 Intel Corp................................................ 97
200 Photronics, Inc.(b)....................................... 4
450 PMC-Sierra, Inc.(b)....................................... 22
300 PRI Automation(b)......................................... 7
300 Texas Instruments......................................... 33
--------
196
--------
</TABLE>
Continued
89
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Technology (0.3%):
500 Electronics for Imaging, Inc.(b)........................ $ 25
400 Macrovision Corp.(b).................................... 18
150 Platinum Technology(b).................................. 4
200 Visx, Inc.(b)........................................... 10
--------
57
--------
Telecommunications - Services & Equipment (4.5%):
500 AirTouch Communications, Inc.(b)........................ 50
600 Alltel Corp............................................. 43
500 Antec Corp.(b).......................................... 15
200 Applied Micro Circuits Corp.(b)......................... 12
2,400 Cisco Systems, Inc.(b).................................. 262
750 Commscope, Inc.(b)...................................... 20
600 Dycom(b)................................................ 29
2 Genesys Telecomm Labs, Inc.(b).......................... (d)
300 Gilat Satellite Networks Ltd.(b)........................ 16
250 GTE Corp................................................ 16
400 Intermedia Communications of Florida(b)................. 10
3,100 Lucent Technologies, Inc................................ 176
500 Mastec, Inc.(b)......................................... 12
1,500 MCI WorldCom, Inc.(b) 130
500 Microwave Power Devices, Inc............................ 8
300 Nextel Communications, Inc., Series A(b)................ 11
500 Sawtek, Inc.(b)......................................... 20
1,200 SBC Communications, Inc.(c)............................. 61
700 Skytel Communications, Inc.(b).......................... 14
--------
905
--------
Transportation & Shipping (0.1%):
500 Atlas Air, Inc.(b)...................................... 13
100 Expeditors International of Washington, Inc............. 6
--------
19
--------
Wholesale Distribution - Pharmaceuticals (0.2%):
675 Cardinal Health, Inc.................................... 41
--------
Total Common Stocks 5,702
--------
Corporate Bonds (26.2%):
Automotive (1.5%):
$ 300 Arca Series 97-C, Class A4, 6.38%, 1/15/03.............. 304
--------
Financial Services (5.2%):
200 Associates Corp., 5.75%, 11/1/03........................ 195
110 Chrysler Financial, 5.69%, 11/15/01..................... 109
200 Countrywide Home, 6.84%, 10/22/04....................... 199
30 Ford Motor Credit Co., 6.00%, 1/14/03................... 30
260 Norwest Securities Corp., 6.25%, 8/25/28................ 242
260 Residential Funding Mortgage Securities, 6.31%,
9/25/29 ............................................... 259
--------
1,034
--------
Food Products & Services (1.0%):
200 Dean Foods Co., 6.63%, 5/15/09.......................... 198
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Funeral Services (0.6%):
$ 110 Service Corp. International, 6.38%, 10/1/00.............. $ 110
--------
Industrial (1.3%):
249 Amoco Canada, 6.75%, 2/15/05............................. 256
--------
Industrial Goods & Services (10.0%):
125 Brunswick Corp., 6.75%, 12/15/06......................... 121
320 Case Equipment Loan Trust, 5.61%, 4/15/05................ 316
130 Comdisco, Inc., 6.00%, 1/30/02........................... 128
230 Computer Assoc. International, 6.25%, 4/15/03............ 223
85 Cummins Engine, Inc., 6.45%, 3/1/05...................... 82
150 Guidant Corp., 6.15%, 2/15/06............................ 143
140 Lubrizol Corp., 5.88%, 12/1/08........................... 130
300 Monsanto Co., 5.38%, 12/1/01............................. 295
125 Ryder Systems, 6.60%, 11/15/05........................... 122
250 Security Capital Group, 7.80%, 1/12/05................... 247
120 UCFC Manufactured Housing Contract, 6.36%, 2/15/11....... 121
80 Williams Cos., Inc., 6.20%, 8/1/02....................... 79
--------
2,007
--------
Printing & Publishing (0.8%):
150 Scholastic Corp., 7.00%, 12/15/03........................ 152
--------
Real Estate Investment Trust (2.5%):
125 Avalon Bay Communities, 6.58%, 2/15/04................... 122
125 Mack-Cali Realty L.P., 7.00%, 3/15/04.................... 123
135 New Plan Excel Realty Trust, 6.88%, 10/15/04............. 134
45 Simon Debartolo Property Group, Inc., 6.63%, 6/15/03..... 43
80 Simon Debartolo Property Group, Inc., 6.75%, 2/9/04...... 78
--------
500
--------
Resorts & Entertainment (0.6%):
105 Time Warner Entertainment, 9.63%, 5/1/02................. 114
--------
Telecommunications - Services & Equipment (2.0%):
135 AT & T Corp., 5.63%, 3/15/04............................. 132
15 Cable & Wireless Communication, 6.63%, 3/6/05............ 15
250 Sprint Capital, 5.70%, 11/15/03.......................... 241
--------
388
--------
Transportation & Shipping (0.7%):
130 JB Hunt Transport Services, 6.00%, 12/12/00.............. 129
--------
Total Corporate Bonds 5,192
--------
Asset Backed Securities (4.7%):
57 Banc One Auto Grantor Trust, 6.27%, 11/20/03............. 57
200 Discover Card Master Trust, 6.05%, 8/18/08............... 197
500 EQCC Home Equity Loan Trust, 1998-1, A3F, 6.23%,
12/15/12................................................ 502
</TABLE>
Continued
90
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Conservative Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Asset Backed Securities, continued:
$ 170 IMC Home Equity Loan Trust, 6.76%, 10/20/20.............. $ 171
--------
Total Asset Backed Securities 927
--------
Mortgage Backed Securities (1.6%):
80 Credit Suisse First Boston, 7.24%, 4/20/07............... 81
80 General Electric Capital Mortgage Services, Inc., 6.50%,
1/25/29................................................. 76
153 Merrill Lynch Mortgage Investors, Inc., 7.15%, 4/25/28... 156
--------
Total Mortgage Backed Securities 313
--------
U.S. Government Agencies (1.0%):
Fannie Mae (1.0%):
208 6.50%, 11/1/28........................................... 203
--------
Total U.S. Government Agencies 203
--------
U.S. Treasury Notes (33.7%):
1,175 5.75%, 11/15/00(c)....................................... 1,182
4,855 5.75%, 8/15/03(c)........................................ 4,866
635 6.13%, 8/15/07(c)........................................ 648
--------
Total U.S. Treasury Notes 6,696
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Cash Equivalents (3.1%):
$ 620 Goldman Sachs Financial Square Premium.................. $ 620
--------
Total Cash Equivalents 620
--------
Short Term Securities Purchased with Collateral (35.7%):
Repurchase Agreements (35.7%):
7,086 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description) ............................... 7,086
--------
Total Short Term Securities Purchased with Collateral 7,086
--------
Total Investments (Cost $26,042)(a)--134.9% 26,739
Other assets in excess of liabilities--(34.9)% (6,914)
--------
Total Net Assets--100.0% $ 19,825
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $20. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $1,139
Unrealized depreciation....................................... (462)
------
Net unrealized appreciation................................... $ 677
======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1999.
(d) Market value is less than $1,000.
See notes to financial statements.
91
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (53.0%):
Advertising (0.7%):
2,100 Doubleclick, Inc.(b)...................................... $ 205
13,000 Omnicom Group............................................. 909
9,500 Valassis Communications, Inc.(b).......................... 331
--------
1,445
--------
Apparel/Shoes (0.1%):
6,500 Tarrant Apparel Group(b).................................. 197
--------
Banking (0.8%)
2,400 Cullen/Frost Bankers, Inc. ............................... 135
40,450 Republic Security Financial Corp. ........................ 339
13,500 State Street Corp. ....................................... 1,029
--------
1,503
--------
Broadcasting/Cable (0.9%):
23,700 Comcast Corp., Class A.................................... 912
20,700 USA Networks, Inc.(b)..................................... 828
--------
1,740
--------
Business Services (1.6%):
23,200 Automatic Data Processing, Inc. .......................... 955
20,400 Ceridian Corp.(b)(c)...................................... 673
3,800 Corporate Executive Board Corp.(b)........................ 111
9,400 Diamond Technology Partners, Inc.(b)(c)................... 226
5,950 FYI, Inc.(b).............................................. 164
8,000 NOVA Corp.(b)(c).......................................... 178
9,400 Onesource Information Services, Inc.(b)................... 89
5,700 QRS Corp.(b).............................................. 422
9,200 Sykes Enterprises, Inc.(b)................................ 286
--------
3,104
--------
Chemicals (0.2%):
9,550 Macdermid, Inc. .......................................... 384
--------
Commercial Services (0.2%):
12,500 Iron Mountain, Inc.(b).................................... 345
--------
Computer Hardware (2.8%):
22,500 Dell Computer Corp.(b).................................... 775
14,400 EMC Corp.(b).............................................. 1,435
16,200 IBM....................................................... 1,884
13,800 Mercury Computer Systems, Inc.(b)......................... 273
19,200 Sun Microsystems, Inc.(b)................................. 1,147
--------
5,514
--------
Computer Services (1.2%):
4,700 Checkfree Holdings Corp.(b)............................... 221
2,900 CMGI, Inc.(b)............................................. 301
9,350 Credence Systems Corp.(b)................................. 277
8,000 E*Trade Group, Inc.(b).................................... 356
4,800 Infospace.com, Inc.(b).................................... 226
10,750 National Data Corp. ...................................... 505
4,350 Pegasus Systems, Inc.(b).................................. 152
1,900 Safeguard Scientifics, Inc.(b)............................ 139
10,100 Unigraphics Solutions, Inc.(b)............................ 161
--------
2,338
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Computer Software & Peripherals (3.1%):
10,650 Ardent Software, Inc.(b).................................. $ 213
17,250 INSpire Insurance Solutions(b)............................ 301
4,300 Intervu, Inc.(b).......................................... 149
7,400 Lexmark International Group(b)............................ 1,007
4,050 Mercury Interactive Corp.(b).............................. 133
5,900 Micromuse, Inc.(b)........................................ 235
36,300 Microsoft, Inc.(b)........................................ 2,929
6,950 National Computer Systems, Inc. .......................... 217
18,700 Oracle Corp.(b)........................................... 464
11,100 Smart Modular Technologies(b)............................. 167
7,800 Worldgate Communications, Inc.(b)......................... 289
--------
6,104
--------
Consumer Goods & Services (1.7%):
8,900 Colgate Palmolive Co. .................................... 889
7,400 Gillette Co. ............................................. 377
10,500 JAKKS Pacific, Inc.(b).................................... 291
18,700 Procter & Gamble Co. ..................................... 1,746
--------
3,303
--------
Diversified Operations (1.2%):
27,602 Tyco International Ltd. .................................. 2,412
--------
Educational Services (0.1%):
11,200 School Specialty, Inc.(b)................................. 167
--------
Electric Utilities (0.2%):
7,050 Calpine Corp.(b).......................................... 382
--------
Electronic Components/Instruments (2.9%):
7,550 Burr-Brown Corp.(b)....................................... 242
8,650 CTS Corp. ................................................ 484
12,550 DII Group, Inc.(b)........................................ 413
21,900 General Electric Co. ..................................... 2,227
17,850 Gentex Corp.(b)........................................... 536
3,200 Optical Coating Laboratory, Inc. ......................... 208
5,900 SDL, Inc.(b).............................................. 549
14,500 Tandy, Inc. .............................................. 1,196
--------
5,855
--------
Environmental Services (0.7%):
10,150 Casella Waste Systems, Inc., Series A(b).................. 200
20,700 Waste Management, Inc. ................................... 1,094
--------
1,294
--------
Financial Services (3.5%):
10,100 Affiliated Managers Group(b).............................. 295
6,400 American Express Co. ..................................... 776
22,200 Amresco, Inc.(b).......................................... 153
42,100 Associates First Capital Corp. ........................... 1,726
5,500 Charles Schwab Corp. ..................................... 582
21,300 Freddie Mac............................................... 1,242
5,700 J.P. Morgan............................................... 794
32,700 MBNA Corp. ............................................... 903
9,350 Metris Cos., Inc. ........................................ 545
--------
7,016
--------
</TABLE>
Continued
92
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Food & Beverage (0.4%):
12,300 The Coca-Cola Co. ........................................ $ 840
--------
Food & Household Products (0.4%):
13,400 Albertsons, Inc.(c)....................................... 717
--------
Food Products & Services (0.8%):
8,300 Kroger Co.(b)............................................. 486
22,100 Safeway, Inc.(b).......................................... 1,028
--------
1,514
--------
Health Care - Services (0.9%):
15,650 American Retirement Corp.(b)(c)........................... 265
22,950 Hooper Holmes, Inc. ...................................... 416
8,900 Laser Vision Centers, Inc.(b)............................. 507
9,250 Medquist, Inc.(b)......................................... 340
1,400 Minimed, Inc.(b).......................................... 83
5,900 NCS Healthcare, Inc.(b)(c)................................ 81
--------
1,692
--------
Home Building (0.1%):
12,800 Standard Pacific Corp. ................................... 168
--------
Home Furnishings (0.1%):
8,600 Ethan Allen Interiors, Inc. .............................. 274
--------
Industrial Goods & Services (0.8%):
17,700 Monsanto Co.(c)........................................... 735
14,200 United Technologies Corp.(c).............................. 881
--------
1,616
--------
Insurance (1.5%):
19,485 American International Group, Inc. ....................... 2,227
19,150 Annuity & Life Re......................................... 493
22,000 Scottish Annuity & Life Holdings.......................... 215
--------
2,935
--------
Leisure (0.1%):
6,100 Cheap Tickets, Inc.(b).................................... 192
--------
Manufacturing - Consumer Goods (0.1%):
9,500 Monaco Coach Corp.(b)..................................... 285
--------
Manufacturing - Capital Goods (0.4%):
6,400 Astec Industries, Inc.(b)................................. 239
19,000 Motivepower Industries, Inc.(b)........................... 322
12,350 Wabash National Corp. .................................... 235
--------
796
--------
Medical Equipment & Supplies (0.8%):
10,200 Biomatrix, Inc.(b)(c)..................................... 312
7,050 Gliatech, Inc.(b)......................................... 181
5,000 Guidant Corp. ............................................ 250
12,800 Medtronic, Inc. .......................................... 909
--------
1,652
--------
Metals & Mining (0.1%):
6,900 Stillwater Mining Co.(b).................................. 220
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Office Equipment & Services (1.3%):
8,500 Hewlett-Packard Co. ...................................... $ 802
6,800 Pitney Bowes, Inc. ....................................... 434
22,600 Xerox Corp. .............................................. 1,269
--------
2,505
--------
Oilfield Services & Equipment (0.8%):
17,300 Burlington Resources, Inc. ............................... 743
6,100 Cal Dive International, Inc.(b)........................... 149
13,000 Schlumberger Ltd. ........................................ 783
--------
1,675
--------
Paper Products (0.4%):
15,200 International Paper Co. .................................. 760
--------
Pharmaceuticals (5.2%):
5,350 Alpharma, Inc., Class A................................... 143
19,400 Bristol Myers Squibb Co. ................................. 1,331
20,200 Eli Lilly & Co. .......................................... 1,443
10,250 Geltex Pharmaceuticals, Inc.(b)(c)........................ 174
13,500 Johnson & Johnson......................................... 1,250
15,850 King Pharmaceuticals, Inc.(b)............................. 376
21,400 Merck & Co., Inc. ........................................ 1,445
17,000 Pfizer, Inc. ............................................. 1,820
1,649 Pharmacia & Upjohn, Inc. ................................. 91
14,300 Priority Healthcare Corp., Class B(b)..................... 488
22,100 Schering Plough Corp. .................................... 996
16,300 Warner-Lambert Co. ....................................... 1,011
--------
10,568
--------
Radio (0.2%):
12,550 Citadel Communications(b)................................. 347
--------
Resorts & Entertainment (1.4%):
15,600 Carnival Cruise Lines..................................... 640
11,250 Premier Parks, Inc.(b)(c)................................. 401
25,600 Time Warner, Inc. ........................................ 1,742
--------
2,783
--------
Restaurants (0.2%):
11,300 Foodmaker, Inc.(b)........................................ 305
--------
Retail (4.3%):
5,900 Ames Department Stores, Inc.(b)........................... 242
5,700 BJ's Wholesale Club, Inc.(b).............................. 148
20,400 CVS Corp. ................................................ 938
25,900 Dayton Hudson Corp. ...................................... 1,632
28,550 Home Depot, Inc. ......................................... 1,624
25,600 Staples(b)................................................ 736
9,200 The Children's Place(b)(c)................................ 358
10,850 The Men's Wearhouse, Inc.(b).............................. 277
24,700 TJX Companies, Inc. ...................................... 741
31,600 Wal-Mart(c)............................................... 1,347
32,500 Walgreen Co. ............................................. 756
--------
8,799
--------
</TABLE>
Continued
93
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Semiconductors (2.1%):
19,150 Aeroflex, Inc.(b)......................................... $ 279
10,400 Applied Materials(b)...................................... 571
8,450 ATMI, Inc.(b)............................................. 186
13,050 Cymer, Inc.(b)(c)......................................... 239
25,900 Intel Corp. .............................................. 1,400
4,900 Photronics, Inc.(b)(c).................................... 97
10,500 PMC-Sierra, Inc.(b)....................................... 510
4,900 PRI Automation(b)......................................... 120
6,800 Texas Instruments......................................... 744
--------
4,146
--------
Technology (0.6%):
9,150 Electronics for Imaging, Inc.(b).......................... 449
8,800 Macrovision Corp.(b)...................................... 400
5,900 Platinum Technology(b).................................... 172
3,700 Visx, Inc.(b)............................................. 192
--------
1,213
--------
Telecommunications - Services & Equipment (7.5%):
9,715 AirTouch Communications, Inc.(b).......................... 976
16,500 Alltel Corp. ............................................. 1,183
10,600 Antec Corp.(b)(c)......................................... 311
4,600 Applied Micro Circuits Corp.(b)........................... 272
30,050 Cisco Systems, Inc.(b).................................... 3,272
15,300 Commscope, Inc.(b)........................................ 402
12,700 Dycom(b).................................................. 613
2,000 Frontier Corp. ........................................... 105
5,100 Gilat Satellite Networks Ltd.(b).......................... 269
9,350 Intermedia Communications of Florida(b)(c)................ 237
45,300 Lucent Technologies(c).................................... 2,576
9,050 Mastec, Inc.(b)........................................... 219
23,000 MCI WorldCom, Inc.(b)..................................... 1,987
10,300 Microwave Power Devices, Inc. ............................ 157
4,700 Motorola, Inc. ........................................... 389
9,500 Nortel Networks Corp. .................................... 713
9,800 Sawtek, Inc.(b)........................................... 388
15,600 SBC Communications, Inc.(c)............................... 798
14,800 Skytel Communications, Inc.(b)............................ 301
--------
15,168
--------
Transportation & Shipping (0.2%):
10,150 Atlas Air, Inc.(b)........................................ 273
2,300 Expeditors International of Washington, Inc. ............. 128
--------
401
--------
Wholesale Distribution - Pharmaceuticals (0.4%):
11,600 Cardinal Health, Inc.(c).................................. 700
--------
Total Common Stocks 105,374
--------
Foreign Common Stocks (4.5%):
Australia (0.1%):
Banking (0.1%):
6,947 National Australia Bank Ltd. ............................. 113
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Foreign Common Stocks, continued:
Belgium (0.0%):
Retail Stores/Catalog (0.0%):
143 Colruyt NV................................................ $ 93
--------
Brazil (0.0%):
Telecommunications (0.0%):
570 Telebras, ADR............................................. 48
570 Telebras-Rights........................................... (d)
--------
48
--------
Finland (0.1%):
Computer Software (0.1%):
4,542 TT Tieto B Shares......................................... 159
--------
Paper Products (0.0%):
1,425 Upm-Kymmene............................................... 42
--------
201
--------
France (0.5%):
Energy (0.1%):
1,770 Veba AG................................................... 101
--------
Engineering (0.0%):
505 Altran Technologies....................................... 114
342 Compagnie De Saint-Gobain................................. 54
--------
168
--------
Health & Personal Care (0.1%):
228 L'Oreal................................................... 138
--------
Industrial Goods & Services (0.0%):
1,200 Vivendi................................................... 89
2,100 Vivendi Rights............................................ 2
--------
91
--------
Insurance (0.1%):
1,268 AXA....................................................... 147
--------
Machinery & Equipment (0.1%):
1,107 Sidel SA(b)............................................... 154
--------
Telecommunications - Services & Equipment (0.0%):
1,255 France Telecom SA......................................... 96
--------
Utilities - Electrical & Gas (0.1%):
1,229 Total SA, B Shares........................................ 150
--------
1,045
--------
Germany (0.3%):
Banking (0.0%):
2,889 BHF Bank AG............................................... 94
--------
Electrical & Electronic (0.0%):
1,390 Siemens AG................................................ 94
--------
Insurance (0.1%):
377 Allianz AG................................................ 103
--------
Telecommunications (0.2%):
1,974 Mannesmann AG............................................. 271
--------
562
--------
</TABLE>
Continued
94
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Foreign Common Stocks, continued:
Hong Kong (0.2%):
Banking (0.0%):
2,874 HSBC Holdings PLC......................................... $ 94
--------
Electrical & Electronic (0.2%):
29,081 Johnson Electric Holdings Ltd. ........................... 108
--------
Gas & Electric Utility (0.0%):
58,768 Hong Kong & China Gas Co. Ltd. ........................... 83
--------
Industrial Holding Company (0.0%):
5,195 Hutchison Whampoa......................................... 43
--------
328
--------
Ireland (0.1%):
Banking (0.1%):
5,673 Bank of Ireland........................................... 107
--------
Italy (0.1%):
Insurance (0.1%):
3,600 Assicurazioni Generali.................................... 129
--------
Jewelry (0.0%):
6,484 Bulgari SpA............................................... 39
--------
Telecommunications (0.0%):
9,323 Telecom Italia Mobile SpA................................. 55
--------
223
--------
Japan (0.8%):
Banking (0.1%):
10,474 Bank of Tokyo-Mitsubishi Ltd. ............................ 140
--------
Computer Hardware (0.0%):
318 TDK Corp. ................................................ 27
--------
Computer Software (0.2%):
8,947 Nihon Unisys.............................................. 167
225 Softbank Corp. ........................................... 26
1 Yahoo Japan Corp.(b)...................................... 206
--------
399
--------
Consumer Electronics (0.1%):
1,219 Sony Corp. ............................................... 115
--------
Electronic Components/Instruments (0.1%):
2,333 Fanuc Co. Ltd. ........................................... 101
--------
Financial Services (0.0%):
6,945 Nomura Securities Co. .................................... 69
--------
Food & Household Products (0.0%):
2,474 Kao Corp. ................................................ 68
--------
Industrial Goods & Services (0.0%):
400 Bridgestone Corp. ........................................ 10
--------
Manufacturing - Consumer Goods (0.1%):
5,566 Canon..................................................... 140
3,130 Fuji Photo Film Ltd. ..................................... 112
--------
252
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Foreign Common Stocks, continued:
Japan, continued:
Pharmaceuticals (0.1%):
13 Sankyo Co. Ltd. .......................................... $ (d)
5,811 Takeda Chemical Industries................................ 259
--------
259
--------
Retail - Food & Drug (0.0%):
18 Matsumotokiyoshi.......................................... 1
--------
Retail Stores/Catalog (0.1%):
528 Ito Yokado................................................ 32
1,000 Seven-Eleven Japan Ltd. .................................. 86
--------
118
--------
Telecommunications (0.0%):
7 Nippon Telegraph & Telephone Corp. ....................... 68
--------
1,627
--------
Korea (0.0%):
Metals (0.0%):
3,600 Pohang Iron & Steel, ADR.................................. 91
--------
Mexico (0.1%):
Beverages & Tobacco (0.0%):
2,850 Coca-Cola Femsa SA, ADR................................... 51
--------
Entertainment (0.1%):
1,425 Grupo Televisa SA, ADR(b)................................. 60
--------
Telecommunications (0.0%):
685 Telefonos De Mexico, ADR.................................. 55
--------
166
--------
Netherlands (0.4%):
Broadcasting & Publishing (0.1%):
3,076 Wolters Kluwer CVA........................................ 124
--------
Consumer Goods & Services (0.0%):
787 Unilever NV............................................... 52
--------
Energy (0.0%):
4,283 Royal Dutch Petroleum..................................... 240
--------
Financial Services (0.1%):
2,000 Fortis NV................................................. 65
2,000 Fortis, Series B.......................................... 64
--------
129
--------
Insurance (0.1%):
906 Aegon NV.................................................. 73
1,493 ING Groep NV.............................................. 80
--------
153
--------
Retail Stores/Catalog (0.1%):
3,455 Kon Ahold NV.............................................. 121
--------
819
--------
Portugal (0.1%):
Telecommunications (0.1%):
2,463 Portugal Telecom, SA ADR.................................. 111
--------
</TABLE>
Continued
95
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Foreign Common Stocks, continued:
Singapore (0.2%):
Banking (0.0%):
8,420 Development Bank of Singapore............................. $ 87
--------
Electrical & Electronic (0.0%):
22,842 Natsteel Electronics Ltd. ................................ 76
--------
Real Estate (0.1%):
14,895 City Developments......................................... 89
--------
Transportation & Shipping (0.1%):
9,895 Singapore International Airlines.......................... 88
--------
340
--------
Spain (0.1%):
Gas & Electric Utility (0.0%):
4,351 Endesa-Empresa Nac Electric............................... 93
--------
Telecommunications (0.1%):
3,526 Telefonica SA............................................. 169
--------
262
--------
Sweden (0.1%):
Telecommunications (0.1%):
3,202 Nokia Corp., ADR.......................................... 227
--------
Switzerland (0.4%):
Banking (0.1%):
630 Credit Suisse Group....................................... 110
370 UBS AG.................................................... 107
--------
217
--------
Food Products & Services (0.1%):
66 Nestle SA................................................. 119
--------
Insurance (0.1%):
60 Swiss Reinsurance Co. .................................... 114
--------
Pharmaceuticals (0.1%):
60 Novartis AG............................................... 87
18 Roche Holdings AG......................................... 191
--------
278
--------
728
--------
United Kingdom (0.9%):
Aerospace/Defense (0.0%):
10,854 British Aerospace PLC..................................... 71
--------
Banking (0.3%):
7,477 Abbey National PLC........................................ 154
5,885 Allied Zurich PLC......................................... 74
9,125 Standard Chartered PLC.................................... 138
--------
366
--------
Beverages & Tobacco (0.0%):
5,700 Bass PLC.................................................. 84
--------
Computer Software (0.0%):
5,401 Logica PLC................................................ 50
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Foreign Common Stocks, continued:
United Kingdom, continued:
Electrical & Electronic (0.0%):
9,700 General Electric PLC..................................... $ 92
--------
Energy (0.1%):
8,923 BP Amoco PLC............................................. 160
--------
Engineering (0.0%):
21,561 Siebe PLC................................................ 98
--------
Food Products & Services (0.0%):
4,561 Compass Group............................................ 46
--------
Industrial Goods & Services (0.1%):
5,637 Boc Group PLC............................................ 96
9,300 Imperial Chemical Industries PLC......................... 103
--------
199
--------
Leisure (0.1%):
5,135 Granada Group PLC........................................ 107
--------
Media and Entertainment (0.1%):
8,194 Pearson PLC.............................................. 156
--------
Pharmaceuticals (0.1%):
6,209 Glaxo Wellcome PLC....................................... 175
--------
Telecommunications (0.0%):
2,721 Vodafone................................................. 52
--------
Utilities - Electrical & Gas (0.1%):
22,270 National Grid Group PLC.................................. 151
--------
1,807
--------
Total Foreign Common Stocks 8,898
--------
Preferred Stocks (0.1%):
Germany (0.0%):
Computer Software (0.0%):
76 SAP AG................................................... 30
--------
United Kingdom (0.1%):
Telecommunications (0.1%):
16,935 Cable & Wireless PLC..................................... 208
--------
Total Preferred Stocks 238
--------
Corporate Bonds (13.2%):
Appliances & Household Products (1.2%):
$ 715 Advanta Mortgage Loan Trust, Series 1999-2, Class A4,
6.89%, 5/25/29 ......................................... 713
1,600 IMC Home Equity Loan Trust, 6.76%, 10/20/20.............. 1,612
--------
2,325
--------
Banking (0.6%):
765 Citicorp, 6.38%, 11/15/08................................ 749
470 First Union National Bank, Series 1999-1, Class A2,
6.65%, 4/14/09 ......................................... 466
--------
1,215
--------
</TABLE>
Continued
96
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Corporate Bonds, continued:
Consumer Goods & Services (0.6%):
$ 1,325 American Greetings, 6.10%, 8/1/28......................... $ 1,270
--------
Financial Services (2.1%):
650 Associates Corp., 6.25%, 11/1/08.......................... 631
2,065 Countrywide Home, 6.84%, 10/22/04......................... 2,057
350 ERAC USA Finance Co., 6.35%, 1/15/01...................... 350
950 Ford Motor Credit Co., 6.00%, 1/14/03..................... 939
18 Sasco 1996, Series 6 C, 7.50%, 8/25/26.................... 18
--------
3,995
--------
Food Products & Services (0.7%):
1,375 Dean Foods Co., 6.63%, 5/15/09............................ 1,364
--------
Foreign Governments (1.1%):
2,100 Providence of Saskatchewan, 8.00%, 7/15/04................ 2,258
--------
Industrial Goods & Services (3.8%):
785 Brunswick Corp., 6.75%, 12/15/06.......................... 759
1,825 Computer Assoc. International, 6.25%, 4/15/03............. 1,770
650 Cummins Engine, Inc., 6.45%, 3/1/05....................... 624
860 Monsanto Co., 5.38%, 12/1/01.............................. 845
600 Motorola, Inc., 7.50%, 5/15/25............................ 626
2,050 Security Capital Group, 7.80%, 1/12/05.................... 2,022
800 Williams Cos., Inc., 6.20%, 8/1/02........................ 793
--------
7,439
--------
Real Estate Investment Trust (0.6%):
350 Avalon Bay Communities, 6.58%, 2/15/04.................... 342
485 Simon Debartolo Property Group, Inc., 6.63%, 6/15/03...... 461
460 Simon Debartolo Property Group, Inc., 6.75%, 2/9/04....... 447
--------
1,250
--------
Resorts & Entertainment (0.9%):
1,700 Time Warner Entertainment, 9.63%, 5/1/02.................. 1,845
--------
Telecommunications - Services & Equipment (1.6%):
930 AT & T Corp., 6.50%, 3/15/29.............................. 866
1,050 Cable & Wireless Communication, Inc., 6.75%, 12/8/08...... 1,024
1,410 Sprint Capital, 6.88%, 11/15/28........................... 1,327
--------
3,217
--------
Total Corporate Bonds 26,178
--------
Convertible Bonds (0.5%):
Financial Services (0.5%):
1,100 EOP Operating LP, 6.63%, 2/15/05.......................... 1,067
--------
Total Convertible Bonds 1,067
--------
Asset Backed Securities (4.9%):
1,321 Banc One Auto Grantor Trust, 6.27%, 11/20/03.............. 1,333
1,950 Discover Card Master Trust, 6.05%, 8/18/08................ 1,924
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- --------
<C> <S> <C>
Asset Backed Securities, continued:
$ 1,180 First Security Auto Owner Trust, 5.74%, 6/15/04.......... $ 1,167
840 General Electric Capital Mortgage Services, Inc., 6.19%,
1/25/23................................................. 835
2,420 General Electric Corp., Series A3, 6.18%, 6/25/15........ 2,423
2,070 Newcourt Receivables Asset Trust, 6.19%, 5/20/05......... 2,062
--------
Total Asset Backed Securities 9,744
--------
Mortgage Backed Securities (5.6%):
1,200 Credit Suisse First Boston, Series 1997-C1, Class A1c,
7.24%, 4/20/07.......................................... 1,216
827 General Electric Capital Mortgage Services, Inc., 6.50%,
1/25/29................................................. 792
715 Heller Financial Commercial Mortgage Asset, Series 1999-
Ph1, Class A-1, 6.50%, 5/15/31.......................... 712
1,500 Morgan Stanley Capital, Inc., 6.53%, 3/15/32............. 1,480
940 Morgan Stanley Capital, Inc., Series 1999-Rm1, 6.71%,
12/15/31................................................ 939
1,748 PNC, Series 98-7, Class A5, 6.75%, 9/25/28............... 1,701
991 Prudential Securities Secured Financing Corp., 6.07%,
1/15/08................................................. 971
2,666 Residential Accredit Loans, Inc., 6.50%, 3/25/29......... 2,553
770 Residential Funding Mortgage, Inc., 6.75%, 6/25/28....... 750
--------
Total Mortgage Backed Securities 11,114
--------
U.S. Government Agencies (8.4%):
Fannie Mae (8.4%):
3,263 7.00%, 9/1/27............................................ 3,267
515 6.50%, 2/1/28............................................ 504
3,743 6.00%, 7/1/28............................................ 3,562
976 6.00%, 8/1/28............................................ 929
495 6.00%, 8/1/28............................................ 471
625 6.50%, 8/1/28............................................ 611
2,126 6.50%, 11/1/28........................................... 2,080
3,902 6.00%, 3/1/29............................................ 3,713
1,550 6.50%, 5/1/29............................................ 1,516
--------
Total U.S. Government Agencies 16,653
--------
U.S. Government Obligations (4.4%):
Government National Mortgage Association (4.4%):
689 6.50%, 9/15/23........................................... 672
766 6.50%, 12/15/23.......................................... 748
3,863 7.50%, 8/15/25........................................... 3,956
520 6.50%, 4/1/29(e)......................................... 508
2,848 6.50%, 4/15/29........................................... 2,781
--------
Total U.S. Government Obligations 8,665
--------
</TABLE>
Continued
97
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Balanced Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
U.S. Treasury Notes (1.6%):
$ 2,995 5.75%, 11/15/00(c)........................................ $ 3,013
210 6.13%, 8/15/07(c)......................................... 214
--------
Total U.S. Treasury Notes 3,227
--------
U.S. Treasury Bonds (1.7%):
3,380 6.25%, 8/15/23(c)......................................... 3,448
--------
Total U.S. Treasury Bonds 3,448
--------
Cash Equivalents (0.6%):
1,146 Goldman Sachs Financial Square Premium.................... 1,146
--------
Total Cash Equivalents 1,146
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Short Term Securities Purchased with Collateral (7.7%):
Floating Rate Note (5.0%):
$ 10,000 Merrill Lynch, 5.05%, 10/4/99........................... $ 10,000
--------
Repurchase Agreements (2.7%):
5,235 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description) 5,235
--------
Total Short Term Securities Purchased with Collateral 15,235
--------
Total Investments (Cost $185,141)(a)--106.2% 210,987
Other assets in excess of liabilities--(6.2)% (12,301)
--------
Total Net Assets--100.0% $198,686
========
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $51. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation...................................... $29,518
Unrealized depreciation...................................... (3,723)
-------
Net unrealized appreciation.................................. $25,795
=======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1999.
(d) Market value is less than $1,000.
(e) On May 31, 1999, the total cost of investments purchased on a when-issued
basis was $510.
See notes to financial statements.
98
<PAGE>
Schedule of Portfolio Investments
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks (62.4%):
Advertising (1.0%):
350 Doubleclick, Inc.(b)........................................ $ 34
2,300 Omnicom Group............................................... 161
1,500 Valassis Communications, Inc.(b)............................ 52
-------
247
-------
Apparel/Shoes (0.1%):
1,000 Tarrant Apparel Group(b).................................... 30
-------
Banking (1.0%):
400 Cullen/Frost Bankers, Inc. ................................. 23
6,378 Republic Security Financial Corp. .......................... 53
2,400 State Street Corp. ......................................... 183
-------
259
-------
Broadcasting/Cable (0.6%):
4,200 Comcast Corp. .............................................. 162
-------
Business Services (2.1%):
4,100 Automatic Data Processing, Inc. ............................ 169
3,600 Ceridian Corp.(b)........................................... 119
750 Corporate Executive Board Corp.(b).......................... 22
1,400 Diamond Technology Partners, Inc.(b)........................ 34
996 FYI, Inc.(b)................................................ 27
1,211 NOVA Corp.(b)............................................... 27
1,800 Onesource Information Services, Inc.(b)..................... 17
775 QRS Corp.(b)................................................ 57
1,500 Sykes Enterprises, Inc.(b).................................. 47
-------
519
-------
Chemicals (0.8%):
1,522 Macdermid, Inc. ............................................ 61
3,100 Monsanto Co. ............................................... 129
-------
190
-------
Commercial Services (0.2%):
1,845 Iron Mountain, Inc.(b)...................................... 51
-------
Computer Hardware (3.7%):
4,000 Dell Computer Corp.(b)...................................... 138
2,700 EMC Corp.(b)................................................ 269
2,800 IBM Corp. .................................................. 326
3,400 Sun Microsystems, Inc.(b)................................... 203
-------
936
-------
Computer Services (1.6%):
725 Checkfree Holdings Corp.(b)................................. 34
300 CMGI, Inc.(b)............................................... 31
1,486 Credence Systems Corp.(b)................................... 44
1,100 E*Trade Group, Inc.(b)...................................... 49
800 Infospace.Com, Inc.(b)...................................... 38
1,675 National Data Corp. ........................................ 78
564 Pegasus Systems, Inc.(b).................................... 20
1,500 PMC-Sierra, Inc.(b)......................................... 73
200 Safeguard Scientifics, Inc.(b).............................. 15
1,535 Unigraphics Solutions, Inc.(b).............................. 24
-------
406
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Computer Software & Peripherals (3.2%):
1,706 Ardent Software, Inc.(b).................................... $ 34
25 BMC Software(b)............................................. 1
2,735 INSpire Insurance Solutions(b).............................. 48
700 Intervu, Inc.(b)............................................ 24
600 Mercury Interactive Corp.(b)................................ 20
900 Micromuse, Inc.(b).......................................... 36
5,500 Microsoft, Inc.(b).......................................... 444
1,100 National Computer Systems, Inc. ............................ 34
3,300 Oracle Corp.(b)............................................. 82
1,815 Smart Modular Technologies(b)............................... 27
1,700 Worldgate Communications, Inc.(b)........................... 63
-------
813
-------
Consumer Goods & Services (2.3%):
1,600 Colgate Palmolive Co. ...................................... 160
1,100 Gillette Co. ............................................... 56
1,700 JAKKS Pacific, Inc.(b)...................................... 47
3,300 Procter & Gamble Co. ....................................... 308
-------
571
-------
Diversified Operations (1.7%):
4,900 Tyco International Ltd. .................................... 428
-------
Educational Services (0.1%):
1,652 School Specialty, Inc.(b)................................... 25
-------
Electric Utilities (0.3%):
1,200 Calpine Corp.(b)............................................ 65
-------
Electronic Components/Instruments (2.8%):
1,202 Burr-Brown Corp.(b)......................................... 38
1,370 CTS Corp. .................................................. 77
2,000 DII Group, Inc.(b).......................................... 66
3,200 General Electric Co. ....................................... 326
2,834 Gentex Corp.(b)............................................. 85
500 Optical Coating Laboratory, Inc. ........................... 32
874 SDL, Inc.(b)................................................ 81
-------
705
-------
Environmental Services (0.9%):
1,613 Casella Waste Systems, Inc., Series A(b).................... 32
3,600 Waste Management, Inc.(c)................................... 190
-------
222
-------
Financial Services (2.7%):
1,610 Affiliated Managers Group(b)................................ 47
1,400 American Express Co. ....................................... 170
3,482 Amresco, Inc.(b)............................................ 24
3,700 Freddie Mac................................................. 216
5,700 MBNA Corp. ................................................. 157
1,300 Metris Cos., Inc. .......................................... 76
-------
690
-------
Food & Beverage (0.6%):
2,200 The Coca-Cola Co. .......................................... 150
-------
</TABLE>
Continued
99
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Food Products & Services (1.3%):
1,500 Kroger Co.(b)............................................... $ 88
5,000 Safeway, Inc.(b)............................................ 232
-------
320
-------
Health Care - Services (1.1%):
2,479 American Retirement Corp.(b)(c)............................. 42
524 Carematrix Corp.(b)......................................... 8
3,628 Hooper Holmes, Inc. ........................................ 66
1,400 Laser Vision Centers, Inc.(b)............................... 79
1,398 Medquist, Inc.(b)........................................... 51
200 Minimed, Inc.(b)............................................ 12
856 NCS Healthcare, Inc.(b)..................................... 12
-------
270
-------
Home Building (0.1%):
1,987 Standard Pacific Corp. ..................................... 26
-------
Home Furnishings (0.2%):
1,214 Ethan Allen Interiors, Inc. ................................ 39
-------
Industrial Goods & Services (0.6%):
2,400 United Technologies Corp.(c)................................ 149
-------
Insurance (2.0%):
3,411 American International Group, Inc. ......................... 390
2,958 Annuity & Life Re........................................... 76
3,500 Scottish Annuity & Life Holdings............................ 34
-------
500
-------
Leisure (0.2%):
1,200 Cheap Tickets, Inc.(b)...................................... 38
-------
Manufacturing - Consumer Goods (0.2%):
1,600 Monaco Coach Corp.(b)....................................... 48
-------
Manufacturing - Capital Goods (0.5%):
1,000 Astec Industries, Inc.(b)................................... 37
2,985 Motivepower Industries, Inc.(b)............................. 51
2,011 Wabash National Corp........................................ 38
-------
126
-------
Medical Equipment & Supplies (1.1%):
1,642 Biomatrix, Inc.(b).......................................... 50
1,058 Gliatech, Inc.(b)........................................... 27
900 Guidant Corp. .............................................. 45
2,200 Medtronic, Inc. ............................................ 157
-------
279
-------
Metals & Mining (0.2%):
1,200 Stillwater Mining Co.(b).................................... 38
-------
Office Equipment & Services (1.5%):
1,500 Hewlett-Packard Co. ........................................ 141
1,200 Pitney Bowes, Inc. ......................................... 77
2,900 Xerox Corp. ................................................ 163
-------
381
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------------ -------
<C> <S> <C>
Common Stocks, continued:
Oilfield Services & Equipment (0.1%):
1,000 Cal Dive International, Inc.(b)............................. $ 25
-------
Pharmaceuticals (7.6%):
800 Alpharma, Inc., Class A..................................... 21
3,400 Bristol Myers Squibb Co. ................................... 233
3,900 Eli Lilly & Co. ............................................ 279
1,564 Geltex Pharmaceuticals, Inc.(b)............................. 27
2,400 Johnson & Johnson........................................... 222
2,476 King Pharmaceuticals, Inc.(b)............................... 59
3,800 Merck & Co., Inc. .......................................... 257
3,800 Pfizer, Inc. ............................................... 406
251 Pharmacia & Upjohn, Inc. ................................... 14
2,201 Priority Healthcare Corp., Class B(b)....................... 75
4,800 Schering Plough Corp........................................ 216
1,900 Warner-Lambert Co........................................... 118
-------
1,927
-------
Radio (0.2%):
1,962 Citadel Communications(b)................................... 54
-------
Resorts & Entertainment (2.0%):
2,400 Carnival Cruise Lines....................................... 98
1,800 Premier Parks, Inc.(b)...................................... 64
4,900 Time Warner, Inc............................................ 334
-------
496
-------
Restaurants (0.2%):
1,900 Foodmaker, Inc.(b).......................................... 51
-------
Retail (5.0%):
1,000 Ames Department Stores, Inc.(b)............................. 41
900 BJ's Wholesale Club, Inc.(b)................................ 23
3,600 CVS Corp. .................................................. 166
4,600 Dayton Hudson Corp. ........................................ 289
5,000 Home Depot, Inc. ........................................... 284
1,400 The Children's Place(b)..................................... 55
1,746 The Men's Wearhouse, Inc.(b)................................ 45
5,600 Wal-Mart.................................................... 239
4,900 Walgreen Co. ............................................... 114
-------
1,256
-------
Semiconductors (1.9%):
2,989 Aeroflex, Inc.(b)........................................... 44
1,349 ATMI, Inc.(b)............................................... 30
1,990 Cymer, Inc.(b).............................................. 36
3,900 Intel Corp. ................................................ 211
678 Photronics, Inc.(b)......................................... 13
800 PRI Automation(b)........................................... 20
1,200 Texas Instruments........................................... 131
-------
485
-------
Technology (0.9%):
1,500 Electronics for Imaging, Inc.(b)............................ 73
1,445 Macrovision Corp.(b)........................................ 66
2,115 Mercury Computer Systems, Inc.(b)........................... 42
</TABLE>
Continued
100
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Common Stocks, continued:
Technology (0.9%):
300 Platinum Technology(b)..................................... $ 9
500 Visx, Inc.(b).............................................. 26
-------
216
-------
Telecommunications - Services & Equipment (9.2%):
1,405 AirTouch Communications, Inc.(b)........................... 141
2,900 Alltel Corp. .............................................. 208
1,660 Antec Corp.(b)............................................. 49
700 Applied Micro Circuits Corp.(b)............................ 41
4,550 Cisco Systems, Inc.(b)..................................... 495
2,500 Commscope, Inc.(b)......................................... 66
1,995 Dycom(b)................................................... 96
300 Frontier Corp. ............................................ 16
822 Gilat Satellite Networks Ltd.(b)........................... 43
1,500 Intermedia Communications of Florida(b).................... 38
9,200 Lucent Technologies(c)..................................... 524
1,500 Mastec, Inc.(b)............................................ 36
3,700 MCI WorldCom, Inc.(b)...................................... 320
1,700 Microwave Power Devices, Inc. ............................. 26
1,561 Sawtek, Inc.(b)............................................ 62
2,700 SBC Communications, Inc.(c)................................ 138
2,300 Skytel Communications, Inc.(b)............................. 47
-------
2,346
-------
Transportation & Shipping (0.2%):
1,599 Atlas Air, Inc.(b)......................................... 43
300 Expeditors International of Washington, Inc. .............. 17
-------
60
-------
Wholesale Distribution - Pharmaceuticals (0.4%):
1,775 Cardinal Health, Inc. ..................................... 107
-------
Total Common Stocks 15,706
-------
Foreign Common Stocks (5.3%):
Australia (0.1%):
Banking (0.1%):
998 National Australia Bank Ltd. .............................. 16
-------
Belgium (0.0%):
Retail Stores/Catalog (0.0%):
19 Colrayt NV................................................. 12
-------
Brazil (0.0%):
Telecommunications (0.0%):
105 Telebras, ADR.............................................. 9
105 Telebras-Rights............................................ (d)
-------
9
-------
9
-------
Finland (0.2%):
Computer Software (0.1%):
542 TT Tieto B Shares.......................................... 19
-------
Paper Products (0.0%):
185 Upm-Kymmene................................................ 5
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Finland, continued:
Telecommunications (0.1%):
436 Nokia AB, Class A, ADR..................................... $ 31
-------
55
-------
France (0.5%):
Commercial Services (0.0%):
52 Altran Technologies........................................ 12
-------
Energy (0.1%):
176 Total SA................................................... 21
-------
Engineering (0.0%):
53 Compagnie De Saint-Gobain.................................. 8
-------
Health & Personal Care (0.2%):
42 L'Oreal.................................................... 26
-------
Industrial Goods & Services (0.0%):
158 Vivendi.................................................... 12
300 Vivendi Rights............................................. (d)
-------
12
-------
Insurance (0.1%):
211 AXA........................................................ 25
-------
Machinery & Equipment (0.1%):
158 Sidel SA................................................... 22
-------
Telecommunications - Services & Equipment (0.0%):
158 France Telecom SA.......................................... 12
-------
138
-------
Germany (0.4%):
Banking (0.0%):
376 BHF Bank AG................................................ 12
-------
Electrical & Electronic (0.1%):
261 Siemens AG................................................. 18
-------
Energy (0.0%):
26 Veba AG.................................................... 1
-------
Insurance (0.1%):
70 Allianz AG................................................. 19
-------
Telecommunications (0.2%):
277 Mannesmann AG.............................................. 38
-------
88
-------
Hong Kong (0.2%):
Banking (0.1%):
526 HSBC Holdings PLC.......................................... 17
-------
Electronic Components/Instruments (0.1%):
3,571 Johnson Electronic Holdings................................ 13
-------
Industrial Holding Company (0.0%):
1,105 Hutchison Whampoa.......................................... 9
-------
Utilities - Electrical & Gas (0.0%):
7,513 Hong Kong & China Gas Co. Ltd.............................. 11
-------
50
-------
</TABLE>
Continued
101
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Ireland (0.1%):
Banking (0.1%):
675 Bank of Ireland............................................ $ 13
-------
Italy (0.2%):
Insurance (0.1%):
421 Assicurazioni Generali..................................... 15
-------
Jewelry (0.1%):
3,721 Bulgari SpA................................................ 22
-------
Telecommunications - Services & Equipment (0.0%):
1,135 Telecom Italia Mobile SpA.................................. 7
-------
44
-------
Japan (0.9%):
Banking (0.0%):
526 Bank of Tokyo-Mitsubishi Ltd............................... 7
-------
Computer Hardware (0.1%):
313 TDK Corp................................................... 27
-------
Computer Software (0.1%):
1,053 Nihon Unisys............................................... 19
25 Softbank Corp.............................................. 3
-------
22
-------
Consumer Electronics (0.1%):
163 Sony Corp.................................................. 15
-------
Electronic Components/Instruments (0.1%):
411 Fanuc Co. Ltd.............................................. 18
-------
Financial Services (0.0%):
1,055 Nomura Securities Co....................................... 11
-------
Food Products & Services (0.1%):
526 Kao Corp................................................... 14
-------
Manufacturing - Consumer Goods (0.1%):
1,087 Canon, Inc................................................. 28
331 Fuji Photo Film Ltd........................................ 12
-------
40
-------
Pharmaceuticals (0.2%):
52 Sankyo Co.................................................. 1
818 Takeda Chemical Industries................................. 37
-------
38
-------
Retail - Food and Drug (0.0%):
32 Matsumotokiyoshi........................................... 1
-------
Retail Stores/Catalog (0.1%):
387 Ito Yokado................................................. 23
-------
Telecommunications (0.0%):
1 Nippon Telegraph & Telephone Corp.......................... 10
-------
226
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Korea (0.1%):
Metals (0.1%):
526 Pohang Iron & Steel, ADR................................... $ 13
-------
Mexico (0.1%):
Beverages & Tobacco (0.0%):
525 Coca-Cola Femsa SA, ADR.................................... 9
-------
Entertainment (0.0%):
263 Grupo Televisa SA, ADR (b)................................. 11
-------
Telecommunications (0.1%):
160 Telefonos De Mexico, ADR................................... 13
-------
33
-------
Netherlands (0.5%):
Broadcasting & Publishing (0.1%):
720 Wolters Kluwer NV.......................................... 29
-------
Consumer Goods & Services (0.0%):
157 Unilever NV................................................ 10
-------
Energy (0.2%):
519 Royal Dutch Petroleum...................................... 30
-------
Financial Services (0.0%):
250 Fortis NV.................................................. 8
-------
Insurance (0.1%):
167 Aegon NV................................................... 13
204 ING Groep NV............................................... 11
-------
24
-------
Retail Stores/Catalog (0.1%):
650 Kon Ahold NV............................................... 23
-------
124
-------
Portugal (0.1%):
Telecommunications (0.1%):
311 Portugal Telecom, SA ADR................................... 14
-------
Singapore (0.2%):
Banking (0.1%):
1,580 Development Bank of Singapore.............................. 16
-------
Electrical & Electronic (0.0%):
3,158 Natsteel Electronics Ltd................................... 11
-------
Real Estate (0.1%):
2,105 City Developments.......................................... 13
-------
Transportation & Shipping (0.0%):
2,105 Singapore International Airlines........................... 18
-------
58
-------
Spain (0.1%):
Gas & Electric Utility (0.1%):
678 Endesa-Empresa Nac Electric SA............................. 14
-------
Telecommunications (0.0%):
449 Telefonica SA.............................................. 22
-------
36
-------
</TABLE>
Continued
102
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Switzerland (0.5%):
Banking (0.1%):
105 Credit Suisse Group........................................ $ 19
53 UBS AG-Registered.......................................... 15
-------
34
-------
Food Products & Services (0.1%):
10 Nestle SA.................................................. 18
-------
Insurance (0.1%):
9 Swiss Reinsurance Co....................................... 17
-------
Pharmaceuticals (0.2%):
10 Novartis AG................................................ 15
3 Roche Holdings AG.......................................... 31
-------
46
-------
115
-------
United Kingdom (1.1%):
Aerospace/Defense (0.0%):
1,621 British Aerospace PLC...................................... 11
-------
Banking (0.2%):
1,167 Abbey National PLC......................................... 24
1,103 Allied Zurich PLC.......................................... 14
1,105 Standard Chartered PLC..................................... 17
-------
55
-------
Beverages & Tobacco (0.1%):
1,105 Bass PLC................................................... 16
-------
Commercial Services (0.0%):
830 Logica PLC................................................. 8
-------
Electric Utility (0.1%):
2,805 National Grid Group PLC.................................... 19
-------
Electrical & Electronic (0.1%):
1,580 General Electric PLC....................................... 15
-------
Energy (0.1%):
1,623 BP Amoco PLC............................................... 29
-------
Engineering (0.1%):
3,215 Invensys PLC............................................... 15
-------
Food Products & Services (0.0%):
689 Compass Group PLC.......................................... 7
-------
Industrial Goods & Services (0.1%):
710 Boc Group PLC.............................................. 12
1,370 Imperial Chemical Industries PLC........................... 15
-------
27
-------
Leisure (0.1%):
740 Granada Group PLC.......................................... 15
-------
Media and Entertainment (0.1%):
1,532 Pearson PLC................................................ 29
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------------- -------
<C> <S> <C>
Foreign Common Stocks, continued:
Pharmaceuticals (0.1%):
1,029 Glaxo Holdings PLC......................................... $ 29
-------
Telecommunications (0.0%):
607 Vodafone................................................... 12
-------
287
-------
Total Foreign Common Stocks 1,331
-------
Preferred Stocks (0.1%):
Germany (0.0%):
Computer Software (0.0%):
9 SAP AG..................................................... 4
-------
United Kingdom (0.1%):
Telecommunications (0.1%):
810 Cable & Wireless PLC....................................... 10
-------
Total Preferred Stocks 14
-------
Corporate Bonds (8.9%):
Appliances & Household Products (0.4%):
$ 90 IMC Home Equity Loan Trust, 6.76%, 10/20/20................ 91
-------
Banking (0.3%):
75 Citicorp, 6.38%, 11/15/08.................................. 73
-------
Consumer Goods & Services (0.4%):
100 American Greetings, 6.10%, 8/1/28.......................... 96
-------
Electrical & Electronic (1.1%):
270 General Electric Corp., Series A3, 6.18%, 6/25/15.......... 270
-------
Financial Services (1.9%):
250 Associates Corp., 5.75%, 11/1/03........................... 243
250 Countrywide Home, 6.84%, 10/22/04.......................... 250
-------
493
-------
Foreign Governments (1.2%):
270 Providence of Saskatchewan, 8.00%, 7/15/04................. 290
-------
Industrial Goods & Services (1.9%):
60 Brunswick Corp., 6.75%, 12/15/06........................... 58
40 Cummins Engine, Inc., 6.45%, 3/1/05........................ 38
80 Lubrizol Corp, 5.88%, 12/01/08............................. 74
75 Monsanto Co., 5.38%, 12/1/01............................... 74
50 Motorola, Inc., 7.50%, 5/15/25............................. 52
200 Security Capital Group, 7.80%, 1/12/05..................... 198
-------
494
-------
Real Estate Investment Trust (0.2%):
25 Avalon Bay Communities, 6.58%, 2/15/04..................... 24
20 Simon Debartolo Property Group, Inc., 6.63%, 6/15/03....... 19
-------
43
-------
</TABLE>
Continued
103
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Aggressive Allocation Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- -------
<C> <S> <C>
Corporate Bonds, continued:
Resorts & Entertainment (0.6%):
$130 Time Warner Entertainment, 9.63%, 5/1/02.................. $ 141
-------
Telecommunications - Services & Equipment (0.9%):
75 AT&T Corp., 6.50%, 3/15/29................................ 70
80 Cable & Wireless Communication, Inc., 6.75%, 12/8/08...... 78
90 Sprint Capital, 6.88%, 11/15/28........................... 85
-------
233
-------
Total Corporate Bonds 2,224
-------
Asset Backed Securities (1.9%):
76 Banc One Auto Grantor Trust, 6.27%, 11/20/03.............. 76
250 Discover Card Master Trust, 6.05%, 8/18/08................ 247
150 Newcourt Receivables Asset Trust, 6.19%, 5/20/05.......... 149
-------
Total Asset Backed Securities 472
-------
Mortgage Backed Securities (2.2%):
165 Credit Suisse First Boston, 7.24%, 4/20/07................ 167
55 General Electric Capital Mortgage Services, Inc., 6.50%,
1/25/29.................................................. 53
125 PNC, Series 98-7, Class A5, 6.75%, 9/25/28................ 121
190 Residential Accredit Loans, Inc., 6.50%, 3/25/29.......... 182
40 Residential Funding Mortgage, Inc., 6.75%, 6/25/28........ 39
-------
Total Mortgage Backed Securities 562
-------
U.S. Government Agencies (1.8%):
Fannie Mae (1.8%):
189 6.00%, 8/1/28............................................. 180
113 6.50%, 8/1/28............................................. 111
159 6.50%, 11/1/28............................................ 156
-------
Total U.S. Government Agencies 447
-------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------------- -------
<C> <S> <C>
U.S. Treasury Notes (10.4%):
$ 850 5.75%, 11/15/00(c)....................................... $ 855
1,560 5.75%, 8/15/03(c)........................................ 1,563
200 6.13%, 8/15/07(c)........................................ 204
-------
Total U.S. Treasury Notes 2,622
-------
U.S. Treasury Bonds (1.9%):
465 6.25%, 8/15/23(c)........................................ 474
-------
Total U.S. Treasury Bonds 474
-------
Cash Equivalents (3.2%):
805 Goldman Sachs Financial Square Premium................... 805
-------
Total Cash Equivalents 805
-------
Short Term Securities Purchased with Collateral (16.5%):
Commercial Paper (2.2%):
548 Oyster Creek Fuel Corp., 5.05%, 6/1/99................... 548
-------
Repurchase Agreements (14.3%):
3,599 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................. 3,599
-------
Total Short Term Securities Purchased with Collateral 4,147
-------
Total Investments (Cost $26,552)(a)--114.6% 28,804
Other assets in excess of liabilities--(14.6)% (3,676)
-------
Total Net Assets--100.0% $25,128
=======
</TABLE>
- -------
(a) Represents cost for financial reporting purposes and differs from cost
basis for federal income tax purposes by the amount of losses recognized
for financial reporting purposes in excess of federal income tax purposes
of $10. Cost for federal income tax purposes differs from value by net
unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation....................................... $2,732
Unrealized depreciation....................................... (490)
------
Net unrealized appreciation................................... $2,242
======
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at May 31, 1999.
(d) Market value is less than $1,000.
See notes to financial statements.
104
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Equity Income Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks (96.8%):
Aerospace & Military Technology (0.4%):
19,600 General Dynamics Corp.(b)................................. $ 1,289
--------
Apparel (3.3%):
210,600 Intimate Brands, Inc.(b).................................. 10,912
--------
Automotive (1.2%):
48,800 Ford Motor Co............................................. 2,784
28,900 Genuine Parts Co.......................................... 974
--------
3,758
--------
Banking (9.4%):
121,079 Bank of America Corp...................................... 7,833
22,600 Bank One Corp.(b)......................................... 1,278
88,500 First Tennessee National Corp.(b)......................... 3,645
60,900 First Union Corp.......................................... 2,805
80,900 Fleet Financial Group, Inc................................ 3,327
39,700 J.P. Morgan & Co.......................................... 5,531
107,500 PNC Financial Corp.(b).................................... 6,154
--------
30,573
--------
Beverages & Tobacco (0.5%):
51,900 UST, Inc.................................................. 1,583
--------
Building Products (3.2%):
14,600 Armstrong World Industries, Inc........................... 850
331,600 Masco Corp................................................ 9,472
--------
10,322
--------
Commercial Services (1.5%):
139,500 Dun & Bradstreet Corp..................................... 4,883
--------
Consumer Goods & Services (5.2%):
378,000 Flowers Industries, Inc................................... 8,410
31,700 Fortune Brands, Inc....................................... 1,296
36,800 Kimberly-Clark Corp....................................... 2,160
71,800 Maytag Corp............................................... 5,066
--------
16,932
--------
Electrical & Electronic (1.9%):
94,600 Emerson Electric Co.(b)................................... 6,043
--------
Financial Services (2.6%):
84,600 Fannie Mae................................................ 5,752
73,000 Washington Mutual, Inc.................................... 2,788
--------
8,540
--------
Food Products & Services (0.4%):
16,300 General Mills, Inc........................................ 1,310
--------
Forest & Paper Products (1.0%):
55,000 Weyerhaeuser Co........................................... 3,413
--------
Industrial Goods & Services (8.6%):
38,500 Cooper Industries, Inc.................................... 1,908
42,000 Dow Chemical Co........................................... 5,103
51,800 E. I. Du Pont de Nemours.................................. 3,390
259,600 RPM, Inc.................................................. 3,602
99,000 Snap-On, Inc.............................................. 3,583
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Industrial Goods & Services, continued:
137,000 United Technologies Corp.(b).............................. $ 8,502
74,500 USX-United States Steel Group, Inc........................ 2,007
--------
28,095
--------
Insurance (4.6%):
40,966 Allstate Corp............................................. 1,493
47,900 Chubb Corp................................................ 3,356
53,500 Cigna Corp................................................ 4,989
73,200 Marsh & Mclennan.......................................... 5,325
--------
15,163
--------
Metals (2.4%):
141,300 Alcoa, Inc................................................ 7,772
--------
Office Equipment & Services (5.7%):
141,400 Pitney Bowes, Inc......................................... 9,014
170,100 Xerox Corp................................................ 9,558
--------
18,572
--------
Oil & Gas (13.6%):
97,900 Atlantic Richfield Co..................................... 8,192
83,800 Chevron Corp.............................................. 7,766
75,000 Exxon Corp................................................ 5,991
73,400 Mobil Corp................................................ 7,432
125,100 Royal Dutch Petroleum Co.(b).............................. 7,076
96,500 Texaco, Inc............................................... 6,321
81,000 Ultramar Diamond Shamrock Corp............................ 1,782
--------
44,560
--------
Pharmaceuticals (3.1%):
71,900 American Home Products Corp............................... 4,143
89,200 Bristol-Myers Squibb Co................................... 6,122
--------
10,265
--------
Real Estate Investment Trust (3.4%):
128,800 Arden Realty, Inc......................................... 3,292
189,700 Duke Realty Investments, Inc.(b).......................... 4,387
48,900 Kimco Realty.............................................. 1,953
43,600 Mack Cali Realty Corp..................................... 1,412
--------
11,044
--------
Retail (3.9%):
72,400 J.C. Penney & Co., Inc.(b)................................ 3,742
123,150 May Department Stores Co.................................. 5,334
75,050 Sears, Roebuck & Co.(b)................................... 3,588
--------
12,664
--------
Telecommunications - Services & Equipment (9.4%):
103,500 Ameritech Corp............................................ 6,812
168,450 AT&T Corp................................................. 9,348
56,200 Bell Atlantic Corp........................................ 3,077
73,000 Frontier Corp............................................. 3,842
119,500 GTE Corp.................................................. 7,536
--------
30,615
--------
</TABLE>
Continued
105
<PAGE>
Schedule of Portfolio Investments, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Equity Income Fund
(Amounts in Thousands, except Shares)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------------- --------
<C> <S> <C>
Common Stocks, continued:
Utilities - Electric (5.2%):
17,200 Consolidated Edison, Inc.................................. $ 835
114,600 Duke Power Co............................................. 6,913
66,000 Florida Power & Light, Inc................................ 3,840
127,000 General Public Utility Corp............................... 5,532
--------
17,120
--------
Utilities - Gas (5.2%):
124,300 Consolidated Natural Gas Co............................... 7,388
136,500 Enron Corp................................................ 9,743
--------
17,131
--------
Utilities - Water (1.1%):
116,300 American Water Works, Inc................................. 3,605
--------
Total Common Stocks 316,164
--------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- --------
<C> <S> <C>
Preferred Stocks (1.1%):
Insurance (1.1%):
41,000 American General Delaware, L.L.C........................ $ 3,695
--------
Total Preferred Stocks 3,695
--------
Cash Equivalents (1.9%):
$6,158 Goldman Sachs Financial Square Premium.................. 6,158
--------
Total Cash Equivalents 6,158
--------
Short Term Securities Purchased with Collateral (16.1%):
Floating Rate Note (12.2%):
10,000 Amex Centurion, 4.95%, 4/24/00.......................... 10,000
10,000 Merrill Lynch, 5.04%, 9/29/99........................... 10,000
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
--------
40,000
--------
Repurchase Agreements (3.8%):
1,915 Bear Stearns Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ 1,915
10,508 Lehman Brothers Triparty Agreement, 5.04%, 6/1/99, (See
Significant Accounting Policies, Lending Portfolio
Securities in the Notes to Financial Statements for
collateral description)................................ 10,508
--------
12,423
--------
Total Short Term Securities Purchased with Collateral 52,423
--------
Total Investments (Cost $293,038)(a)--115.9% 378,440
Other assets in excess of liabilities--(15.9)% (51,852)
--------
Total Net Assets--100.0% $326,588
========
</TABLE>
- -------
(a) Cost for federal tax purposes differs from value by net unrealized
appreciation as follows:
<TABLE>
<S> <C>
Unrealized appreciation............................. $89,129
Unrealized depreciation............................. (3,727)
-------
Net unrealized appreciation......................... $85,402
=======
</TABLE>
(b) All or a portion of this security has been loaned at May 31, 1999.
See notes to financial statements.
106
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Prime Obligations Fund
---------------------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998 Year Ended June 30, 1997
----------------------------------- ------------------------------------------ ------------------------
Investor A Investor B Institutional Investor A Investor B(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............ 0.046 0.037 0.047 0.045 0.027 0.046 0.048 0.049
Distributions
Net investment
income............ (0.046) (0.037) (0.047) (0.045) (0.027) (0.046) (0.048) (0.049)
------- ------ -------- -------- ------ -------- -------- --------
Net Asset Value, End
of Period.......... $ 1.000 $1.000 $ 1.000 $ 1.000 $1.000 $ 1.000 $ 1.000 $ 1.000
======= ====== ======== ======== ====== ======== ======== ========
Total Return........ 4.66% 3.73% 4.76% 4.63%(b) 2.75%(b) 4.73%(b) 4.91% 5.01%
Ratios/Supplemetary
Data
Net Assets at end of
period (000)....... $14,924 $ 764 $628,553 $217,934 $ 387 $690,947 $195,046 $677,324
Ratio of expenses to
average net assets. 0.76% 1.66% 0.65% 0.76%(c) 1.66%(c) 0.66%(c) 0.73% 0.63%
Ratio of net
investment income
to average net
assets............. 4.76% 3.59% 4.67% 4.93%(c) 4.01%(c) 5.04%(c) 4.80% 4.90%
Ratio of expenses to
average net
assets*............ 0.93% 1.67% 0.67% 0.93%(c) 1.68%(c) 0.68%(c) 0.90% 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) 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.
107
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Prime Obligations Fund
--------------------------------------------------------------------------
Year ended June 30, 1996 Year ended June 30, 1995 Year ended June 30, 1994
------------------------ ------------------------ ------------------------
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.. 0.050 0.051 0.047 0.048 0.027 0.028
Distributions
Net investment income.. (0.050) (0.051) (0.047) (0.048) (0.027) (0.028)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 5.07% 5.17% 4.81% 4.91% 2.75% 2.85%
Ratios/Supplemetary Data
Net Assets at end of
period (000)........... $147,478 $596,075 $108,565 $640,380 $105,611 $561,697
Ratio of expenses to
average net assets..... 0.74% 0.64% 0.75% 0.65% 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 4.93% 5.05% 4.71% 4.83% 2.71% 2.84%
Ratio of expenses to
average net assets*.... 0.91% 0.66% 0.92% 0.67% 0.91% 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.
See notes to financial statements.
108
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Obligations Fund
-------------------------------------------------------------------------------
Year Ended Eleven Months Year Ended
May 31, 1999 Ended May 31, 1998 June 30, 1997
------------------------ --------------------------- ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.044 0.045 0.044 0.045 0.047 0.048
Distributions
Net investment income.. (0.044) (0.045) (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............ 4.53% 4.64% 4.53%(a) 4.62%(a) 4.79% 4.89%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $ 2,032 $121,475 $169,210 $185,384 $212,082 $210,162
Ratio of expenses to
average net assets..... 0.75% 0.67% 0.76%(b) 0.66%(b) 0.74% 0.64%
Ratio of net investment
income to average net
assets................. 4.75% 4.57% 4.83%(b) 4.93%(b) 4.69% 4.79%
Ratio of expenses to
average net assets*.... 0.92% 0.69% 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 ratio would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
109
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Obligations Fund
--------------------------------------------------------------------------
Year Ended Year Ended Year Ended
June 30, 1996 June 30, 1995 June 30, 1994
------------------------ ------------------------ ------------------------
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 0.027 0.028
Distributions
Net investment income.. (0.049) (0.050) (0.047) (0.048) (0.027) (0.028)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 4.99% 5.10% 4.76% 4.87% 2.69% 2.79%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $186,944 $207,451 $169,179 $227,565 $172,482 $192,612
Ratio of expenses to
average net assets..... 0.74% 0.64% 0.77% 0.67% 0.77% 0.67%
Ratio of net investment
income to average net
assets................. 4.88% 4.99% 4.62% 4.76% 2.64% 2.74%
Ratio of expenses to
average net assets*.... 0.91% 0.66% 0.94% 0.69% 0.94% 0.69%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
See notes to financial statements.
110
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Tax-Free Fund
-------------------------------------------------------------------------------
Year Ended Eleven Months Year Ended
May 31, 1999 Ended May 31, 1998 June 30, 1997
------------------------ --------------------------- ------------------------
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.. 0.025 0.026 0.026 0.027 0.028 0.029
Distributions
Net investment income.. (0.025) (0.026) (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............ 2.56% 2.66% 2.66%(a) 2.75%(a) 2.83% 2.94%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $ 621 $110,136 $55,106 $104,062 $47,466 $108,884
Ratio of expenses to
average net assets..... 0.77% 0.68% 0.76%(b) 0.66%(b) 0.78% 0.68%
Ratio of net investment
income to average net
assets................. 2.71% 2.62% 2.86%(b) 2.96%(b) 2.82% 2.90%
Ratio of expenses to
average net assets*.... 0.94% 0.70% 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 ratio would have been as indicated.
(a) Not annualized.
(b) Annualized.
See notes to financial statements.
111
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Tax-Free Fund
--------------------------------------------------------------------------
Year Ended Year Ended Year Ended
June 30, 1996 June 30, 1995 June 30, 1994
------------------------ ------------------------ ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.029 0.030 0.029 0.030 0.018 0.019
Distributions
Net investment income.. (0.029) (0.030) (0.029) (0.030) (0.018) (0.019)
------- -------- ------- ------- ------- -------
Net Asset Value, End of
Period................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======== ======= ======= ======= =======
Total Return............ 2.91% 3.02% 2.90% 3.00% 1.81% 1.92%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $41,713 $106,154 $45,102 $98,489 $48,256 $84,465
Ratio of expenses to
average net assets..... 0.76% 0.66% 0.74% 0.64% 0.68% 0.58%
Ratio of net investment
income to average net
assets................. 2.89% 2.97% 2.88% 2.97% 1.81% 1.90%
Ratio of expenses to
average net assets*.... 0.93% 0.68% 0.95% 0.70% 0.93% 0.68%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratio would have been as indicated.
See notes to financial statements.
112
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Treasury Fund
-------------------------------------------------------------------------------
Year Ended Eleven Months Ended May Year Ended
May 31, 1999 31, 1998 June 30, 1997
------------------------ --------------------------- ------------------------
Investor A Institutional Investor A Institutional Investor A Institutional
---------- ------------- ---------- ------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.044 0.045 0.045 0.046 0.047 0.048
Distributions
Net investment income.. (0.044) (0.045) (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............ 4.51% 4.61% 4.61%(a) 4.70%(a) 4.82% 4.93%
Ratios/Supplementary
Data
Net Assets at end of
period (000)........... $ 9,161 $269,534 $240,208 $321,584 $176,006 $324,377
Ratio of expenses to
average net assets..... 0.67% 0.58% 0.67%(b) 0.57%(b) 0.67% 0.57%
Ratio of net investment
income to average net
assets................. 4.77% 4.52% 4.90%(b) 5.00%(b) 4.72% 4.83%
Ratio of expenses to
average net assets*.... 0.91% 0.68% 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.
113
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Treasury Fund
-----------------------------------------------------------------------------
Year Ended Year Ended December 1, 1993 to
June 30, 1996 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.
114
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Small Capitalization Fund
------------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
------------------------------------- ----------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 25.72 $ 25.02 $ 26.15 $ 27.55 $ 26.99 $ 27.05 $ 27.91
------- ------- -------- -------- ------- ------- --------
Investment Activities
Net investment income
(loss)................ (0.34) (0.50) (0.23) (0.35) (0.53) (0.49) (0.27)
Net realized and
unrealized gains
(losses) from
investments........... (4.36) (4.21) (4.50) (0.18) (0.14) (0.18) (0.19)
------- ------- -------- -------- ------- ------- --------
Total from Investment
Activities............ (4.70) (4.71) (4.73) (0.53) (0.67) (0.67) (0.46)
------- ------- -------- -------- ------- ------- --------
Distributions
Net realized gains..... (2.53) (2.53) (2.53) (1.30) (1.30) (1.30) (1.30)
------- ------- -------- -------- ------- ------- --------
Total Distributions.... (2.53) (2.53) (2.53) (1.30) (1.30) (1.30) (1.30)
------- ------- -------- -------- ------- ------- --------
Net Asset Value, End of
Period................. $ 18.49 $ 17.78 $ 18.89 $ 25.72 $ 25.02 $ 25.08 $ 26.15
======= ======= ======== ======== ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... (18.92)% (19.52)% (18.71)% (1.90)%(a) (2.470)%(a) (2.43)%(a) (1.62)%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $57,813 $18,736 $226,139 $163,178 $41,399 $14,747 $527,805
Ratio of expenses to
average net assets..... 1.61% 2.37% 1.36% 1.60%(b) 2.35%(b) 2.35%(b) 1.35%(b)
Ratio of net investment
income (loss) to
average net assets..... (1.07)% (1.82)% (0.82)% (1.23)%(b) (1.99)%(b) (1.99)%(b) (0.99)%(b)
Portfolio turnover (c).. 99.86% 99.86% 99.86% 46.17% 46.17% 46.17% 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.
115
<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.
116
<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 (a) Institutional Investor A Investor B (b) 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%(e) 45.32% (0.55)% (12.68)%(c) (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%(d) 1.33% 1.40% 2.35%(d) 1.30%
Ratio of net investment
income (loss) to
average net assets..... (1.27)% (2.03)% (3.06)%(d) 1.06% (1.24)% (2.19)%(d) (1.14)%
Ratio of expenses to
average net assets*.... 1.58% 2.55% 3.53%(d) 1.33% 1.55% 2.61%(d) 1.30%
Portfolio turnover (f).. 50.53% 50.53% 50.53% 50.53% 72.64% 72.64% 72.64%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
117
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Mid Capitalization Fund
-----------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
------------------------------------- ---------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 14.98 $ 14.20 $ 15.12 $ 15.72 $ 15.12 $15.24 $ 15.82
------- ------- -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. (0.19) (0.28) (0.14) (0.14) (0.23) (0.23) (0.11)
Net realized and
unrealized gains
(losses) from
investments............ 1.15 1.06 1.13 2.51 2.42 2.46 2.52
------- ------- -------- ------- ------- ------ --------
Total from Investment
Activities............. 0.96 0.78 0.99 2.37 2.19 2.23 2.41
------- ------- -------- ------- ------- ------ --------
Distributions
Net realized gains...... (1.84) (1.84) (1.84) (3.11) (3.11) (3.11) (3.11)
------- ------- -------- ------- ------- ------ --------
Total Distributions..... (1.84) (1.84) (1.84) (3.11) (3.11) (3.11) (3.11)
------- ------- -------- ------- ------- ------ --------
Net Asset Value, End of
Period.................. $ 14.10 $ 13.14 $ 14.27 $ 14.98 $ 14.20 $14.36 $ 15.12
======= ======= ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ 8.08% 7.19% 8.20% 16.84%(a) 16.27%(a) 16.44%(a) 16.98%(a)
Ratios/Supplementary Da-
ta:
Net Assets at end of
period (000)............ $50,605 $16,629 $319,733 $90,183 $23,780 $2,228 $518,080
Ratio of expenses to
average net assets...... 1.57% 2.32% 1.32% 1.55%(b) 2.30%(b) 2.30%(b) 1.30%(b)
Ratio of net investment
income (loss) to average
net assets.............. (1.00)% (1.75)% (0.75)% (1.02)%(b) (1.77)%(b) (1.77)%(b) (0.77)%(b)
Portfolio turnover (c)... 100.19% 100.19% 100.19% 38.41% 38.41% 38.41% 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.
118
<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.
119
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
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 (a) Institutional Investor A Investor B (b) 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 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%(e) 25.20% (2.57)% (12.18)%(c) (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%(d) 1.29% 1.38% 2.30%(d) 1.28%
Ratio of net investment
income (loss) to
average net assets..... (0.87)% (1.61)% (1.43)%(d) (0.64)% (0.75)% (1.57)%(d) (0.65)%
Ratio of expenses to
average net assets*.... 1.54% 2.54% 2.53%(d) 1.29% 1.53% 2.56%(d) 1.28%
Ratio of net investment
income (loss) to
average net assets*.... (0.90)% (1.87)% (1.70)%(d) (0.65)% (0.90)% (1.83)%(d) (0.65)%
Portfolio turnover (f).. 46.39% 46.39% 46.39% 46.39% 70.87% 70.87% 70.87%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
120
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Large Capitalization Fund
-----------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
------------------------------------- ---------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning of Period......... $ 16.19 $ 15.95 $ 16.27 $ 14.44 $ 14.34 $14.28 $ 14.48
------- ------- -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)................ (0.11) (0.23) (0.06) (0.06) (0.12) (0.06) (0.03)
Net realized and
unrealized gains
(losses) from
investments........... 3.89 3.79 3.90 3.51 3.43 3.32 3.52
------- ------- -------- ------- ------- ------ --------
Total from Investment
Activities............ 3.78 3.56 3.84 3.45 3.31 3.26 3.49
------- ------- -------- ------- ------- ------ --------
Distributions
Net realized gains..... (0.30) (0.30) (0.30) (1.67) (1.67) (1.67) (1.67)
Tax return of capital.. -- -- -- (0.03) (0.03) (0.03) (0.03)
------- ------- -------- ------- ------- ------ --------
Total Distributions.... (0.30) (0.30) (0.30) (1.70) (1.70) (1.70) (1.70)
------- ------- -------- ------- ------- ------ --------
Net Asset Value, End of
Period................. $ 19.67 $ 19.21 $ 19.81 $ 16.19 $ 15.95 $15.84 $ 16.27
======= ======= ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 23.42% 22.38% 23.67% 25.95%(a) 25.12%(a) 24.87%(a) 26.18%(a)
Ratios/Supplementary Da-
ta:
Net Assets at end of
period (000)........... $24,513 $14,128 $409,107 $21,628 $10,169 $ 268 $358,221
Ratio of expenses to
average net assets..... 1.35% 2.11% 1.10% 1.35%(b) 2.09%(b) 2.09%(b) 1.10%(b)
Ratio of net investment
income (loss) to
average net assets..... (0.59)% (1.34)% (0.33)% (0.45)%(b) (1.21)%(b) (1.24)%(b) (0.19)%(b)
Portfolio turnover (c).. 50.51% 50.51% 50.51% 24.74% 24.74% 24.74% 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.
121
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Large Capitalization Fund
------------------------------------------------------------------------------------------------------
Year Ended June 30, 1997 December 28, 1995 to June 30, 1996 (a)
----------------------------------------------- ------------------------------------------------------
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... $ 11.23 $11.22 $11.16 $ 11.25 $10.00 $10.00 $10.00 $ 10.00
------- ------ ------ -------- ------ ------ ------ --------
Investment Activities
Net investment income
(loss)............... -- (0.05) (0.06) 0.03 0.03 0.01 -- 0.03
Net realized and
unrealized gains
(losses) from
investments.......... 3.30 3.25 3.27 3.31 1.23 1.23 1.17 1.25
------- ------ ------ -------- ------ ------ ------ --------
Total from Investment
Activities........... 3.30 3.20 3.21 3.34 1.26 1.24 1.17 1.28
------- ------ ------ -------- ------ ------ ------ --------
Distributions
Net investment income. (0.01) -- (0.01) (0.03) (0.03) (0.02) -- (0.03)
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) (0.03)
------- ------ ------ -------- ------ ------ ------ --------
Net Asset Value, End of
Period................ $ 14.44 $14.34 $14.28 $ 14.48 $11.23 $11.22 $11.16 $ 11.25
======= ====== ====== ======== ====== ====== ====== ========
Total Return (excludes
sales and redemption
charges).............. 29.52% 28.62% 28.82% 29.81% 8.99%(b) 8.77%(b) 8.14%(b) 12.86%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000).......... $12,260 $4,130 $ 42 $338,388 $1,657 $ 832 $ 2 $274,150
Ratio of expenses to
average net assets.... 1.37% 2.12% 2.12% 1.12% 1.40%(c) 1.78%(c) 2.24%(c) 2.19%(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) 1.26%(c)
Ratio of expenses to
average net assets*... (d) (d) (d) (d) 2.62%(c) 4.07%(c) 4.25%(c) 2.26%(c)
Portfolio turnover (e). 48.44% 48.44% 48.44% 48.44% 0.86% 0.86% 0.86% 0.86%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) 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.
122
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
International Discovery Fund
----------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
------------------------------------ ---------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 16.51 $15.98 $ 16.70 $ 16.25 $ 15.85 $16.21 $ 16.41
------- ------ -------- ------- ------- ------ --------
Investment Activities
Net investment income
(loss)................. (0.15) (0.27) (0.10) (0.09) (0.19) (0.17) (0.04)
Net realized and
unrealized gains
(losses) from
investments and foreign
currencies............. (0.68) (0.64) (0.70) 0.86 0.83 0.83 0.84
------- ------ -------- ------- ------- ------ --------
Total from Investment
Activities............. (0.83) (0.91) (0.80) 0.77 0.64 0.66 0.80
------- ------ -------- ------- ------- ------ --------
Distributions
Net realized gains...... (0.87) (0.87) (0.87) (0.51) (0.51) (0.51) (0.51)
------- ------ -------- ------- ------- ------ --------
Total Distributions..... (0.87) (0.87) (0.87) (0.51) (0.51) (0.51) (0.51)
------- ------ -------- ------- ------- ------ --------
Net Asset Value, End of
Period.................. $ 14.81 $14.20 $ 15.03 $ 16.51 $ 15.98 $16.36 $ 16.70
======= ====== ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)................ (5.20)% (5.89)% (4.94)% 5.17%(a) 4.47%(a) 4.49%(a) 5.31%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)............ $24,914 $7,604 $267,764 $43,268 $12,840 $1,026 $427,922
Ratio of expenses to
average net assets...... 1.82% 2.57% 1.57% 1.82%(b) 2.56%(b) 2.56%(b) 1.56%(b)
Ratio of net investment
income (loss) to average
net assets.............. (0.45)% (1.21)% (0.20)% (0.75)%(b) (1.49)%(b) (1.48)%(b) (0.47)%(b)
Portfolio turnover (c)... 84.66% 84.66% 84.66% 34.15% 34.15% 34.15% 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.
123
<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.
124
<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 (a) Institutional Investor A Investor B (b) 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)%(e) (1.86)% 14.99% (6.44)%(c) 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%(d) 1.56% 1.63% 2.56%(d) 1.52%
Ratio of net investment
income (loss) to
average net assets..... 0.08% (0.49)% 1.74%(d) 0.31% (0.29)% (0.22)%(d) (0.30)%
Ratio of expenses to
average net assets*.... 1.91% 2.92% 3.27%(d) 1.59% 1.84% 2.61%(d) 1.57%
Portfolio turnover (f).. 104.39% 104.39% 104.39% 104.39% 37.23% 37.23% 37.23%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
125
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Limited Maturity Bond Fund
-----------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- -----------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<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)................ 0.53 0.46 0.56 0.47 0.40 0.42 0.50
Net realized and
unrealized gains
(losses) from
investments........... (0.08) (0.08) (0.08) 0.01 0.02 (0.01) 0.01
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.45 0.38 0.48 0.48 0.42 0.41 0.51
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.53) (0.46) (0.56) (0.47) (0.41) (0.42) (0.50)
------- ------ -------- ------- ------ ------ --------
Total Distributions.... (0.53) (0.46) (0.56) (0.47) (0.41) (0.42) (0.50)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................. $ 9.42 $ 9.42 $ 9.42 $ 9.50 $ 9.50 $ 9.28 $ 9.50
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 4.84% 4.03% 5.12% 5.23%(a) 4.50%(a) 4.48%(a) 5.46%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $24,246 $ 826 $123,137 $41,571 $1,553 $2,199 $150,510
Ratio of expenses to
average net assets..... 1.08% 1.83% 0.84% 1.07%(b) 1.82%(b) 1.80%(b) 0.82%(b)
Ratio of net investment
income (loss) to
average net assets..... 5.55% 4.81% 5.83% 5.37%(b) 4.63%(b) 4.60%(b) 5.63%(b)
Ratio of expenses to
average net assets*.... 1.32% 2.07% 1.07% 1.31%(b) 2.06%(b) 2.04%(b) 1.06%(b)
Portfolio turnover (c).. 126.98% 126.98% 126.98% 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.
126
<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.
127
<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 (a) Institutional Investor A Investor B (b) 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)
In excess of net
realized gains........ -- -- -- -- (0.04) -- (0.04)
------- ------ ------ -------- ------- ------ --------
Total Distributions.... (0.55) (0.47) (0.19) (0.57) (0.65) (0.22) (0.66)
------- ------ ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 9.71 $ 9.70 $ 9.53 $ 9.71 $ 9.57 $ 9.56 $ 9.57
======= ====== ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 7.53% 6.68% 3.58%(e) 7.76% 0.32% (2.09)%(c) 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%(d) 0.84% 0.86% 1.78%(d) 0.76%
Ratio of net investment
income (loss) to
average net assets..... 5.89% 5.14% 5.61%(d) 6.11% 6.22% 5.36%(d) 6.32%
Ratio of expenses to
average net assets*.... 1.36% 2.36% 1.18%(d) 1.11% 1.30% 2.33%(d) 1.05%
Portfolio turnover (f).. 397.97% 397.97% 397.97% 397.97% 353.28% 353.28% 353.28%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
128
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Intermediate Government Obligations Fund
-----------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- -----------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<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)................ 0.48 0.40 0.50 0.49 0.43 0.40 0.52
Net realized and
unrealized gains
(losses) from
investments........... (0.11) (0.11) (0.12) 0.16 0.15 0.18 0.16
------- ------ -------- ------- ------ ------ --------
Total from Investment
Activities............ 0.37 0.29 0.38 0.65 0.58 0.58 0.68
------- ------ -------- ------- ------ ------ --------
Distributions
Net investment income.. (0.48) (0.40) (0.50) (0.49) (0.43) (0.43) (0.52)
Tax return of capital.. -- -- -- (0.01) (0.01) (0.01) (0.01)
------- ------ -------- ------- ------ ------ --------
Total Distributions.... (0.48) (0.40) (0.50) (0.50) (0.44) (0.44) (0.53)
------- ------ -------- ------- ------ ------ --------
Net Asset Value, End of
Period................. $ 9.77 $ 9.74 $ 9.76 $ 9.88 $ 9.85 $ 9.68 $ 9.88
======= ====== ======== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 3.83% 2.96% 4.01% 6.78%(a) 6.07%(a) 6.19%(a) 7.03%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $10,244 $1,255 $133,678 $14,461 $1,852 $ 235 $171,481
Ratio of expenses to
average net assets..... 1.24% 1.99% 0.99% 1.22%(b) 1.97%(b) 1.96%(b) 0.97%(b)
Ratio of net investment
income (loss) to
average net assets..... 4.81% 4.05% 5.06% 5.42%(b) 4.67%(b) 4.67%(b) 5.67%(b)
Ratio of expenses to
average net assets*.... 1.33% 2.08% 1.08% 1.31%(b) 2.06%(b) 2.05%(b) 1.06%(b)
Portfolio turnover(c)... 53.07% 53.07% 53.07% 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.
129
<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%
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.
130
<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 (a) Institutional Investor A Investor B (b) 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)
In excess of net
realized gains........ -- -- -- -- (0.25) -- (0.25)
------- ------ ------ -------- ------- ------ --------
Total Distributions.... (0.50) (0.44) (0.17) (0.52) (0.84) (0.21) (0.85)
------- ------ ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 9.93 $ 9.89 $ 9.76 $ 9.93 $ 9.62 $ 9.60 $ 9.62
======= ====== ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 8.69% 7.84% 5.21%(e) 9.02% (0.90)% (3.31)%(c) (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%(d) 1.04% 1.00% 1.92%(d) 0.90%
Ratio of net investment
income (loss) to
average net assets..... 5.22% 4.41% 4.24%(d) 5.43% 5.80% 4.80%(d) 5.90%
Ratio of expenses to
average net assets*.... 1.41% 2.42% 2.36%(d) 1.16% 1.29% 2.32%(d) 1.04%
Portfolio turnover (f).. 549.13% 549.13% 549.13% 549.13% 546.06% 546.06% 546.06%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
131
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
U.S. Government Income Fund
------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<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)................ 0.55 0.47 0.57 0.61 0.55 0.54 0.63
Net realized and
unrealized gains
(losses) from
investments........... (0.14) (0.13) (0.14) 0.08 0.07 0.08 0.08
------- ------- -------- ------- ------- ------ --------
Total from Investment
Activities............ 0.41 0.34 0.43 0.69 0.62 0.62 0.71
------- ------- -------- ------- ------- ------ --------
Distributions
Net investment income.. (0.55) (0.47) (0.57) (0.53) (0.47) (0.47) (0.55)
Tax return of capital.. -- -- -- (0.04) (0.04) (0.04) (0.04)
------- ------- -------- ------- ------- ------ --------
Total Distributions.... (0.55) (0.47) (0.57) (0.57) (0.51) (0.51) (0.59)
------- ------- -------- ------- ------- ------ --------
Net Asset Value, End of
Period................. $ 9.13 $ 9.11 $ 9.13 $ 9.27 $ 9.24 $ 9.21 $ 9.27
======= ======= ======== ======= ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 4.46% 3.76% 4.73% 7.80%(a) 6.98%(a) 7.03%(a) 8.04%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $38,190 $16,373 $150,113 $54,710 $23,739 $ 363 $161,567
Ratio of expenses to
average net assets..... 1.00% 1.75% 0.75% 1.00%(b) 1.75%(b) 1.74%(b) 0.75%(b)
Ratio of net investment
income (loss) to
average net assets..... 5.92% 5.15% 6.15% 7.20%(b) 6.45%(b) 6.34%(b) 7.44%(b)
Ratio of expenses to
average net assets*.... 1.34% 2.09% 1.09% 1.34%(b) 2.09%(b) 2.08%(b) 1.09%(b)
Portfolio turnover (c).. 52.60% 52.60% 52.60% 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.
132
<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.
133
<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 (a) Institutional Investor A Investor B (b) Institutional
---------- ---------- -------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value, Begin-
ning 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%(e) 8.70% 0.94% (2.26)%(c) 1.04%
Ratios/Supplementary Da-
ta:
Net Assets at end of pe-
riod (000)............. $50,931 $8,478 $ 29 $110,190 $54,027 $2,787 $101,506
Ratio of expenses to av-
erage net assets....... 1.04% 1.83% 2.88%(d) 0.83% 0.82% 1.77%(d) 0.72%
Ratio of net investment
income (loss) to
average net assets..... 8.03% 7.28% 11.54%(d) 8.25% 7.42% 6.72%(d) 7.51%
Ratio of expenses to av-
erage net assets*...... 1.44% 2.44% 2.88%(d) 1.19% 1.36% 2.42%(d) 1.11%
Portfolio turnover (f).. 114.71% 114.71% 114.71% 114.71% 102.24% 102.24% 102.24%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
134
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Bond Fund
------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<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)................ 0.52 0.46 0.56 0.52 0.46 0.47 0.56
Net realized and
unrealized gains
(losses) from
investments........... (0.28) (0.29) (0.29) 0.32 0.32 0.31 0.31
------- ------ -------- ------- ------ ------- --------
Total from Investment
Activities............ 0.24 0.17 0.27 0.84 0.78 0.78 0.87
------- ------ -------- ------- ------ ------- --------
Distributions
Net investment income.. (0.53) (0.46) (0.56) (0.53) (0.47) (0.47) (0.56)
Net realized gains..... (0.02) (0.02) (0.02) -- -- -- --
------- ------ -------- ------- ------ ------- --------
Total Distributions.... (0.55) (0.48) (0.58) (0.53) (0.47) (0.47) (0.56)
------- ------ -------- ------- ------ ------- --------
Net Asset Value, End of
Period................. $ 9.68 $ 9.69 $ 9.73 $ 9.99 $10.00 $ 9.96 $ 10.04
======= ====== ======== ======= ====== ======= ========
Total Return (excludes
sales and redemption
charges)............... 2.55% 1.66% 2.70% 8.83%(a) 8.18%(a) 8.11%(a) 9.15%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $11,916 $4,548 $366,230 $16,669 $6,423 $ 595 $481,998
Ratio of expenses to
average net assets..... 1.19% 1.94% 0.94% 1.19%(b) 1.94%(b) 1.94%(b) 0.94%(b)
Ratio of net investment
income (loss) to
average net assets..... 5.29% 4.53% 5.53% 5.81%(b) 5.07%(b) 5.06%(b) 6.06%(b)
Ratio of expenses to
average net assets*.... 1.28% 2.03% 1.03% 1.28%(b) 2.03%(b) 2.03%(b) 1.04%(b)
Portfolio turnover (c).. 268.66% 268.66% 268.66% 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.
135
<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.
136
<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 (a) Institutional Investor A Investor B (b) 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)
In excess of net
realized gains........ (0.01) -- -- -- (0.54) -- (0.54)
------- ------- ------- -------- ------- ------ --------
Total Distributions.... (0.59) (0.52) (0.22) (0.61) (1.11) (0.21) (1.12)
------- ------- ------- -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 9.67 $ 9.68 $ 9.64 $ 9.72 $ 9.30 $ 9.26 $ 9.29
======= ======= ======= ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 10.85% 10.62% 8.41%(e) 11.78% (1.62)% (4.84)%(c) (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%(d) 1.02% 0.98% 1.89%(d) 0.88%
Ratio of net investment
income (loss) to
average net assets..... 6.32% 5.54% 5.62%(d) 6.54% 5.86% 5.34%(d) 5.97%
Ratio of expenses to
average net assets*.... 1.39% 2.39% 2.26%(d) 1.14% 1.27% 2.29%(d) 1.02%
Portfolio turnover (f).. 1010.64% 1010.64% 1010.64% 1010.64% 893.27% 893.27% 893.27%
</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) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
137
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Municipal Bond Fund
---------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- ---------------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $10.53 $10.50 $ 10.53 $10.53 $10.51 $ 10.54
------ ------ ------- ------ ------ --------
Investment Activities
Net investment income
(loss)................ 0.37 0.29 0.40 0.35 0.28 0.37
Net realized and
unrealized gains
(losses) from
investments........... (0.03) (0.02) (0.02) 0.22 0.21 0.21
------ ------ ------- ------ ------ --------
Total from Investment
Activities............ 0.34 0.27 0.38 0.57 0.49 0.58
------ ------ ------- ------ ------ --------
Distributions
Net investment income.. (0.37) (0.29) (0.40) (0.39) (0.32) (0.41)
Net realized gains..... (0.12) (0.12) (0.12) (0.18) (0.18) (0.18)
------ ------ ------- ------ ------ --------
Total Distributions.... (0.49) (0.41) (0.52) (0.57) (0.50) (0.59)
------ ------ ------- ------ ------ --------
Net Asset Value, End of
Period................. $10.38 $10.36 $ 10.39 $10.53 $10.50 $ 10.53
====== ====== ======= ====== ====== ========
Total Return (excludes
sales and redemption
charges)............... 3.29% 2.53% 3.56% 5.46%(a) 4.75%(a) 5.71%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $6,886 $ 491 $96,946 $9,502 $ 706 $123,856
Ratio of expenses to
average net assets..... 1.02% 1.77% 0.77% 1.02%(b) 1.77%(b) 0.77%(b)
Ratio of net investment
income (loss) to
average net assets..... 3.51% 2.76% 3.76% 3.64%(b) 2.89%(b) 3.89%(b)
Ratio of expenses to
average net assets*.... 1.31% 2.06% 1.06% 1.31%(b) 2.06%(b) 1.07%(b)
Portfolio turnover (c).. 6.67% 6.67% 6.67% 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.
138
<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.
139
<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 (a)(b) Institutional Investor A Investor B (c) Institutional
---------- ---------- ----------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.29 $10.26 $ 9.88 $ 10.29 $ 10.92 $10.76 $ 10.92
------- ------ ------ -------- ------- ------ --------
Investment Activities
Net investment income
(loss)................ 0.41 0.33 (0.03) 0.46 0.40 0.13 0.41
Net realized and
unrealized gains
(losses) from
investments........... 0.27 0.27 0.65 0.27 (0.31) (0.50) (0.31)
------- ------ ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.68 0.60 0.62 0.73 0.09 (0.37) 0.10
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.41) (0.33) (0.14) (0.46) (0.39) (0.13) (0.40)
Net realized gains..... -- -- -- -- (0.21) -- (0.21)
In excess of net
realized gains........ (0.17) (0.17) (0.16) (0.17) (0.12) -- (0.12)
------- ------ ------ -------- ------- ------ --------
Total Distributions.... (0.58) (0.50) (0.30) (0.63) (0.72) (0.13) (0.73)
------- ------ ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 10.39 $10.36 $10.20 $ 10.39 $ 10.29 $10.26 $ 10.29
======= ====== ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 7.02% 6.17% 3.47%(f) 7.25% 0.71% (3.41)%(d) 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%(e) 0.80% 0.87% 1.80%(e) 0.77%
Ratio of net investment
income (loss) to
average net assets..... 4.00% 3.22% (0.54)%(e) 4.21% 3.72% 2.88%(e) 3.83%
Ratio of expenses to
average net assets*.... 1.33% 2.33% 0.71%(e) 1.08% 1.32% 2.37%(e) 1.06%
Portfolio turnover (g).. 35.15% 35.15% 35.15% 35.15% 44.39% 44.39% 44.39%
</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) There was only one share outstanding for the Investor C shares at June 30,
1995.
(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.
140
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
----------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- ----------------------------------------
Investor A Investor B Institutional Investor A Investor B Institutional
---------- ---------- ------------- ---------- ---------- -------------
<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)................ 0.44 0.36 0.47 0.42 0.34 0.44
Net realized and
unrealized gains
(losses) from
investments........... (0.08) (0.08) (0.08) 0.23 0.23 0.23
------- ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.36 0.28 0.39 0.65 0.57 0.67
------- ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.44) (0.36) (0.47) (0.45) (0.37) (0.47)
Net realized gains..... (0.07) (0.07) (0.07) (0.03) (0.03) (0.03)
------- ------ -------- ------- ------ --------
Total Distributions.... (0.51) (0.43) (0.54) (0.48) (0.40) (0.50)
------- ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 10.91 $10.92 $ 10.91 $ 11.06 $11.07 $ 11.06
======= ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 3.38% 2.52% 3.54% 5.96%(a) 5.32%(a) 6.30%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $28,305 $3,217 $192,536 $38,536 $3,983 $206,246
Ratio of expenses to
average net assets..... 1.01% 1.76% 0.76% 0.99%(b) 1.74%(b) 0.74%(b)
Ratio of net investment
income (loss) to
average net assets..... 3.96% 3.21% 4.21% 4.09%(b) 3.34%(b) 4.34%(b)
Ratio of expenses to
average net assets*.... 1.29% 2.05% 1.05% 1.28%(b) 2.03%(b) 1.03%(b)
Portfolio turnover (c).. 6.52% 6.52% 6.52% 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.
141
<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.
142
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Michigan Municipal Bond Fund
----------------------------------------------------------------------------------------------
Year Ended June 30, 1995 Year Ended June 30, 1994
----------------------------------------------------- ----------------------------------------
Investor A Investor B Investor C (a)(b) Institutional Investor A Investor B (c) Institutional
---------- ---------- ----------------- ------------- ---------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 10.53 $10.52 $10.11 $ 10.53 $ 10.97 $11.09 $ 10.97
------- ------ ------ -------- ------- ------ --------
Investment Activities
Net investment income
(loss)................ 0.48 0.40 (0.02) 0.50 0.47 0.16 0.48
Net realized and
unrealized gains
(losses) from
investments........... 0.23 0.24 0.62 0.25 (0.36) (0.57) (0.36)
------- ------ ------ -------- ------- ------ --------
Total from Investment
Activities............ 0.71 0.64 0.60 0.75 0.11 (0.41) 0.12
------- ------ ------ -------- ------- ------ --------
Distributions
Net investment income.. (0.48) (0.40) -- (0.50) (0.45) (0.16) (0.46)
Net realized gains..... (0.01) (0.01) (0.17) (0.02) (0.01) -- (0.01)
In excess of net
realized gains........ -- -- -- -- (0.09) -- (0.09)
------- ------ ------ -------- ------- ------ --------
Total Distributions.... (0.49) (0.41) (0.17) (0.52) (0.55) (0.16) (0.56)
------- ------ ------ -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 10.75 $10.75 $10.54 $ 10.76 $ 10.53 $10.52 $ 10.53
======= ====== ====== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 6.99% 6.28% 3.39%(f) 7.33% 0.92% (3.69)%(d) 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%(e) 0.78% 0.85% 1.77%(e) 0.75%
Ratio of net investment
income (loss) to
average net assets..... 4.57% 3.80% (0.32)%(e) 4.79% 4.25% 3.51%(e) 4.35%
Ratio of expenses to
average net assets*.... 1.32% 2.32% 0.48%(e) 1.07% 1.29% 2.32%(e) 1.04%
Portfolio turnover (g).. 26.06% 26.06% 26.06% 26.06% 6.69% 6.69% 6.69%
</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) There was only one share outstanding for the Investor C shares at June 30,
1995.
(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.
143
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Conservative Allocation Fund
-----------------------------------------------------------------
Eleven Months Ended December 30, 1996 to
Year Ended May 31, 1999 May 31, 1998 June 30, 1997 (a)
------------------------ ------------------- --------------------
Institutional Institutional Institutional
------------------------ ------------------- --------------------
<S> <C> <C> <C>
Net Asset Value,
Beginning of Period.... $ 11.08 $ 10.36 $ 10.00
------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.38 0.35 0.14
Net realized and
unrealized gains
(losses) from
investments........... 0.14 0.79 0.34
------- ------- -------
Total from Investment
Activities............ 0.52 1.14 0.48
------- ------- -------
Distributions
Net investment income.. (0.37) (0.35) (0.12)
Net realized gains..... (0.39) (0.07) --
------- ------- -------
Total Distributions.... (0.76) (0.42) (0.12)
------- ------- -------
Net Asset Value, End of
Period................. $ 10.84 $ 11.08 $ 10.36
======= ======= =======
Total Return (excludes
sales and redemption
charges)............... 4.78% 11.18%(b) 4.87%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $19,825 $17,031 $10,287
Ratio of expenses to
average net assets..... 1.06% 1.07%(c) 1.64%(c)
Ratio of net investment
income (loss) to
average net assets..... 3.44% 3.69%(c) 3.12%(c)
Ratio of expenses to
average net assets*.... 1.36% 1.37%(c) 1.94%(c)
Portfolio turnover...... 194.19% 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.
144
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Balanced Allocation Fund
-------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- -------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Inverstor C Institutional
---------- ---------- ------------- ---------- ---------- ----------- -------------
<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)................ 0.27 0.18 0.31 0.29 0.19 0.18 0.32
Net realized and
unrealized gains
(losses) from
investmentsand foreign
currencies............ 0.07 0.07 0.07 1.21 1.21 1.21 1.20
------- ------ -------- ------- ------- ------- --------
Total from Investment
Activities............ 0.34 0.25 0.38 1.50 1.40 1.39 1.52
------- ------ -------- ------- ------- ------- --------
Distributions
Net investment income.. (0.27) (0.17) (0.31) (0.32) (0.23) (0.23) (0.35)
Net realized gains..... (0.37) (0.37) (0.37) (0.36) (0.36) (0.36) (0.36)
------- ------ -------- ------- ------- ------- --------
Total Distributions.... (0.64) (0.54) (0.68) (0.68) (0.59) (0.59) (0.71)
------- ------ -------- ------- ------- ------- --------
Net Asset Value, End of
Period................. $ 13.52 $13.52 $ 13.50 $ 13.82 $ 13.81 $ 13.72 $ 13.80
======= ====== ======== ======= ======= ======= ========
Total Return (excludes
sales and redemption
charges)............... 2.47% 1.72% 2.73% 11.87%(a) 11.05%(a) 11.04%(a) 12.06%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $15,760 $5,723 $177,203 $19,404 $ 7,988 $ 927 $262,533
Ratio of expenses to
average net assets..... 1.36% 2.11% 1.11% 1.36%(b) 2.11%(b) 2.11%(b) 1.12%(b)
Ratio of net investment
income (loss) to
average net assets..... 2.05% 1.30% 2.31% 2.32%(b) 1.57%(b) 1.56%(b) 2.57%(b)
Ratio of expenses to
average net assets*.... 1.61% 2.36% 1.36% 1.62%(b) 2.37%(b) 2.37%(b) 1.37%(b)
Portfolio turnover (c).. 158.56% 158.56% 158.56% 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.
145
<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.
146
<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 (a) Institutional Investor A Investor B (b) 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%(e) 19.22% (1.63)% (8.16)%(c) (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%(d) 1.25% 1.18% 2.05%(d) 1.09%
Ratio of net investment
income (loss) to
average net assets..... 2.54% 1.74% 1.65%(d) 2.75% 2.38% 1.94%(d) 2.49%
Ratio of expenses to
average net assets*.... 1.78% 2.77% 2.68%(d) 1.52% 1.63% 2.61%(d) 1.39%
Portfolio turnover (f).. 250.66% 250.66% 250.66% 250.66% 192.39% 192.39% 192.39%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
147
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Aggressive Allocation Fund
------------------------------------------------------
Year Ended Eleven Months Ended December 30, 1996
May 31, 1999 May 31, 1998 to June 30, 1997 (a)
------------- ------------------- --------------------
Institutional Institutional Institutional
------------- ------------------- --------------------
<S> <C> <C> <C>
Net Asset Value, Begin-
ning of Period......... $ 11.75 $ 10.57 $ 10.00
------- ------- -------
Investment Activities
Net investment income
(loss)................ 0.16 0.12 0.07
Net realized and
unrealized gains
(losses) from
investments and
foreign
currencies ........... (0.06) 1.19 0.56
------- ------- -------
Total from Investment
Activities............ 0.10 1.31 0.63
------- ------- -------
Distributions
Net investment income.. (0.13) (0.13) (0.06)
Realized gain.......... (0.22) -- --
------- ------- -------
Total Distributions.... (0.35) (0.13) (0.06)
------- ------- -------
Net Asset Value, End of
Period................. $ 11.50 $ 11.75 $ 10.57
======= ======= =======
Total Return (excludes
sales and redemption
charges)............... 0.81% 12.45%(b) 6.38%(b)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $25,128 $33,816 $39,043
Ratio of expenses to
average net assets..... 1.32% 1.30%(c) 1.32%(c)
Ratio of net investment
income (loss) to
average net assets..... 1.27% 1.11%(c) 1.61%(c)
Ratio of expenses to
average net assets*.... 1.47% 1.45%(c) 1.47%(c)
Portfolio turnover...... 168.63% 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.
148
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The Parkstone Group of Funds
<TABLE>
<CAPTION>
Equity Income Fund
------------------------------------------------------------------------------------------
Year Ended May 31, 1999 Eleven Months Ended May 31, 1998
----------------------------------- ------------------------------------------------------
Investor A Investor B Institutional Investor A Investor B Investor C Institutional
---------- ---------- ------------- ---------- ---------- ---------- -------------
<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)................ 0.22 0.09 0.27 0.25 0.11 0.11 0.29
Net realized and
unrealized gains
(losses) from
investments........... 1.76 1.75 1.75 2.72 2.71 2.72 2.70
------- ------- -------- -------- ------- ------ --------
Total from Investment
Activities............ 1.98 1.84 2.02 2.97 2.82 2.83 2.99
------- ------- -------- -------- ------- ------ --------
Distributions
Net investment income.. (0.22) (0.13) (0.27) (0.21) (0.10) (0.09) (0.25)
Net realized gains..... (2.24) (2.24) (2.24) (3.18) (3.18) (3.18) (3.18)
------- ------- -------- -------- ------- ------ --------
Total Distributions.... (2.46) (2.37) (2.51) (3.39) (3.28) (3.27) (3.43)
------- ------- -------- -------- ------- ------ --------
Net Asset Value, End of
Period................. $ 18.30 $ 18.15 $ 18.20 $ 18.78 $ 18.68 $18.79 $ 18.69
======= ======= ======== ======== ======= ====== ========
Total Return (excludes
sales and redemption
charges)............... 12.06% 11.22% 12.40% 17.08%(a) 16.28%(a) 16.22%(a) 17.31%(a)
Ratios/Supplementary
Data:
Net Assets at end of
period (000)........... $82,733 $22,456 $221,399 $104,503 $27,767 $1,094 $281,395
Ratio of expenses to
average net assets..... 1.59% 2.34% 1.34% 1.58%(b) 2.33%(b) 2.33%(b) 1.33%(b)
Ratio of net investment
income (loss) to
average net assets..... 1.23% 0.48% 1.49% 1.39%(b) 0.64%(b) 0.63%(b) 1.65%(b)
Portfolio turnover (c).. 51.09% 51.09% 51.09% 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.
149
<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%
Portfolio turnover (a). 20.14% 20.14% 20.14% 20.14% 40.75% 40.75% 40.75% 40.75%
</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.
150
<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 (a) Institutional Investor A Investor B (b) 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%(e) 10.55% (1.63)% (8.76)%(c) (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%(d) 1.32% 1.40% 2.33%(d) 1.30%
Ratio of net investment
income (loss) to
average net assets..... 2.65% 1.86% 1.88%(d) 2.86% 2.56% 1.87%(d) 2.64%
Ratio of expenses to
average net assets*.... 1.57% 2.57% 2.55%(d) 1.32% 1.55% 2.59%(d) 1.30%
Portfolio turnover (f).. 77.70% 77.70% 77.70% 77.70% 69.35% 69.35% 69.35%
</TABLE>
- -------
* During the period, certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from November 16, 1994 (commencement of offering of Investor C
shares) to June 30, 1995.
(b) Period from February 4, 1994 (commencement of offering of Investor B
shares) to June 30, 1994.
(c) Not annualized.
(d) Annualized.
(e) Represents total return for the Institutional shares for the period from
July 1, 1994 to November 15, 1994 plus the total return for the Investor C
shares for the period from November 16, 1994 to June 30, 1995.
(f) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguishing between classes of shares issued.
See notes to financial statements.
151
<PAGE>
Notes to Financial Statements
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
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").
<TABLE>
<CAPTION>
Fund Objective
---- ---------
<S> <C>
Prime Obligations Fund..... To seek current income with liquidity and
stability of principal.
U.S. Government Obligations
Fund....................... To seek current income with liquidity and
stability of principal.
Tax-Free Fund.............. To seek as high a level of current interest
income free from federal income taxes as is
consistent with the preservation of capital and
relative stability of principal.
Treasury Fund.............. To seek current income with liquidity and
stability of principal.
Small Capitalization Fund.. To seek growth of capital by investing primarily
in a diversified portfolio of common stock and
securities 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
Fund....................... To seek long-term growth of capital.
Limited Maturity Bond Fund. To seek current income as well as preservation
of capital by investing in a portfolio of high-
and medium-grade fixed-income securities with
remaining maturities of six years or less.
Intermediate Government
Obligations Fund........... To seek current income with preservation of
capital by investing in U.S. Government
securities with remaining maturities of twelve
years or less.
U.S. Government Income
Fund....................... To provide shareholders with a high level of
current income consistent with prudent
investment risk.
Bond Fund.................. To seek current income as well as preservation
of capital by investing in a portfolio of high-
and medium-grade fixed-income securities.
Municipal Bond Fund........ To seek current interest income which is exempt
from federal income taxes and preservation of
capital.
Michigan Municipal Bond
Fund....................... To seek income which is exempt from federal
income tax and Michigan state income and
intangibles tax when received by certain
shareholders, and to seek preservation of
capital.
Conservative Allocation
Fund....................... To seek current income and conservation of
capital, with a secondary objective of long-term
capital growth.
</TABLE>
Continued
152
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
Fund Objective
---- ---------
<S> <C>
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 assets funds are
shown at original cost, which, combined with accrued interest, approximates
market value. The differences between the cost and market values of
investments held by the variable net asset value funds are reflected as
either unrealized appreciation or depreciation.
Security Transactions and Related Income:
Security transactions are accounted for on the date the security is
purchased or sold (trade date). Interest income is recognized on the
accrual basis and includes, where applicable, the pro rata amortization of
premium or discount. Dividend income is recorded on the ex-dividend date.
Gains or losses realized from sales of securities are determined by
comparing the identified cost of the security lot sold with the net sales
proceeds.
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.
Continued
153
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
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 May 31, 1999 are recorded for
financial reporting purposes as unrealized gains and losses by the Funds.
The following forwards were open at May 31, 1999.
Continued
154
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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
Euro Dollars........... 17,349 $ 18,095 $ (45) 6/1/99
Japanese Yen........... 3,000,000,000 26,242,127 414,017 4/3/00
Singapore Dollars...... 3,351 1,802 (142) 6/1/99
Long Contracts
U.S. Dollars........... 18,095 18,095 -- 6/1/99
U.S. Dollars........... 1,802 1,802 -- 6/1/99
--------
Net receivable for
forward currency con-
tracts............... $413,830
========
Balanced Allocation Fund
Short Contracts
British Pounds......... 266,447 $ 426,208 $ (747) 6/2/99
British Pounds......... 742,741 1,188,089 (2,081) 6/2/99
Euro Dollars........... 160,479 170,188 2,389 6/1/99
Euro Dollars........... 798 832 (2) 6/1/99
Singapore Dollars...... 91,395 53,013 22 6/1/99
Singapore Dollars...... 207 111 (9) 6/1/99
Singapore Dollars...... 302,852 175,668 74 6/1/99
Long Contracts
U.S. Dollars........... 426,208 426,208 -- 6/2/99
U.S. Dollars........... 1,188,089 1,188,089 -- 6/2/99
U.S. Dollars........... 175,668 175,668 -- 6/1/99
U.S. Dollars........... 53,013 53,013 -- 6/1/99
U.S. Dollars........... 170,188 170,188 -- 6/1/99
U.S. Dollars........... 832 832 -- 6/1/99
U.S. Dollars........... 111 111 -- 6/1/99
--------
Net payable for for-
ward currency con-
tracts............... $ (354)
========
Aggressive Allocation
Fund
Short Contracts
British Pounds......... 48,951 $ 78,302 $ (137) 6/2/99
British Pounds......... 125,617 $ 200,937 $ (352) 6/2/99
Euro Dollars........... 37,894 $ 40,187 $ 564 6/1/99
Euro Dollars........... 159 $ 166 $ (0) 6/1/99
Singapore Dollars...... 15,138 $ 8,781 $ 4 6/1/99
Singapore Dollars...... 31 $ 17 $ (1) 6/1/99
Singapore Dollars...... 71,709 $ 41,594 $ 17 6/1/99
Long Contracts
U.S. Dollars........... 78,302 78,302 -- 6/2/99
U.S. Dollars........... 200,937 200,937 -- 6/2/99
U.S. Dollars........... 41,594 41,594 -- 6/1/99
U.S. Dollars........... 8,781 8,781 -- 6/1/99
U.S. Dollars........... 40,187 40,187 -- 6/1/99
U.S. Dollars........... 166 166 -- 6/1/99
U.S. Dollars........... 17 17 -- 6/1/99
--------
Net receivable for
forward currency con-
tracts............... $ 95
========
</TABLE>
Continued
155
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Lending Portfolio Securities:
To generate additional income, each Fund, except the Treasury Fund, may
lend up to 33 and 1/3% 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 loaned. The Funds continue to earn
interest and dividends on securities loaned 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
National City Investment Management Co. (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, considered to be liquid 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 and received cash as collateral for
these loans. Under this guideline, a statement of cash flows is presented
for each of the Funds listed below. As of May 31, 1999, the following Funds
had securities on loan with the following market values (amounts in
thousands):
<TABLE>
<CAPTION>
Market Market Value
Value of of Loaned
Collateral Securities
---------- ------------
<S> <C> <C>
Small Capitalization Fund............................ $49,997 $48,125
Mid Capitalization Fund.............................. 80,266 78,280
Large Capitalization Fund............................ 45,660 44,689
Limited Maturity Bond Fund........................... 8,071 7,827
Intermediate Government Obligations Fund............. 24,143 23,194
U.S. Government Income Fund.......................... 6,647 6,401
Bond Fund............................................ 48,859 47,311
Conservative Allocation Fund......................... 7,086 6,849
Balanced Allocation Fund............................. 15,235 14,822
Aggressive Allocation Fund........................... 4,147 4,031
Equity Income Fund................................... 52,423 51,694
</TABLE>
The loaned securities were fully collateralized by cash, U.S. Government
securities, short-term corporate notes and repurchase agreements as of May
31, 1999.
Continued
156
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
As disclosed in the schedules of portfolio investments the Small
Capitalization, Mid Capitalization, Large Capitalization and Equity Income
Funds collectively invested cash collateral in a Bear Stearns Repurchase
Agreement with an interest rate of 5.04% and a maturity of 6/1/99 which was
collateralized by the following securities (amounts in thousands):
<TABLE>
<CAPTION>
Principal Description Market Value
--------- ----------- ------------
<C> <S> <C> <C> <C>
$23,330 PNC Mortgage Securities Corp. 6.15% 6/25/99 $22,942
14,272 Structured Asset Mortgage Investments 0.01% 5/25/99 14,324
Inc.
29,049 Freddie Mac Strip 0.00% 7/1/26 13,746
</TABLE>
As disclosed in the schedules of portfolio investments the Limited Maturity
Bond, U.S. Government Income, Bond, Conservative Allocation, Balanced
Allocation, Aggressive Allocation and Equity Income Funds collectively
invested cash collateral in a Lehman Brothers Repurchase Agreement with an
interest rate of 5.04% and a maturity of 6/1/99 which was collateralized by
the following securities:
<TABLE>
<CAPTION>
Principal Description Market Value
--------- ----------- ------------
<C> <S> <C> <C> <C>
$66,015 PNC Mortgage Securities Corp. 0.00% 6/25/99 $62,715
</TABLE>
As disclosed in the schedules of portfolio investments the Intermediate
Government Obligations Fund invested cash collateral in a Paine Webber
Repurchase Agreement with an interest rate of 4.85% and a maturity of
6/1/99 which was collateralized by the following securities:
<TABLE>
<CAPTION>
Principal Description Market Value
--------- ----------- ------------
<C> <S> <C> <C> <C>
$ 915 Various Federal Farm Credit Bank 4.33-6.32% 10/26/00-6/18/03 $ 906
8,415 Various Federal Home Loan Bank 4.45-7.26% 6/2/00-3/23/04 8,540
3,994 Various Fannie Mae 4.75-6.85% 7/6/00-4/23/04 4,073
9,080 Various Freddie Mac 4.45-6.95% 5/16/00-4/20/04 9,075
1,670 Various Sallie Mae 4.80-6.05% 9/14/00-12/18/00 1,682
67 Various International Bank
Reconciliation and Development 0.00% 8/15/99-2/15/04 55
292 Various Tennessee Valley Authority 5.28-6.13% 9/14/01-7/15/03 296
</TABLE>
Financial Futures Contracts:
Each Fund may invest in financial futures contracts for the purpose of
hedging their existing portfolio securities or securities it intends 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, known 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.
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.
Continued
157
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Dividends to Shareholders:
Dividends from net investment income are declared daily and paid monthly
for the money market funds. Dividends from net investment income are
declared and paid monthly for the variable net asset value funds.
Distributable net realized capital gains, if any, are declared and
distributed at least annually. Effective December 1, 1998, the Limited
Maturity Bond Fund, Intermediate Government Income Fund, U.S. Government
Income Fund,Bond Fund, Municipal Bond Fund and the Michigan Municipal Bond
Fund changed from declaring and paying dividends from net investment income
monthly to declaring dividends from net investment income daily and paying
monthly.
Dividends from net investment income and from net realized capital gains
are determined in accordance with income tax regulations which may differ
from GAAP. These "book/tax" differences are primarily due to differing
treatments for mortgage-backed securities and deferrals of certain losses.
These "book/tax" differences are either considered temporary or permanent
in nature. To the extent these differences are permanent in nature, such
amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassifications. Dividends and distributions to shareholders which exceed
net investment income and net realized gains for financial reporting
purposes but not for tax purposes are reported as dividends in excess of
net investment income or distributions in excess of net realized gains. To
the extent they exceed net investment income and net realized gains for tax
purposes, they are reported as distributions of capital.
As of May 31, 1999, the following reclassifications have been made to
increase (decrease) such accounts with offsetting adjustments made to paid-
in-capital (amounts in thousands):
<TABLE>
<CAPTION>
Undistributed
Undistributed Net Net Realized
Investment Gain/(Loss)
Income on Investments
----------------- --------------
<S> <C> <C>
U.S. Treasury Fund.......................... 32 (32)
Small Capitalization Fund................... 4,377 (44,566)
Mid Capitalization Fund..................... 4,129 (47,211)
Large Capitalization Fund................... 1,629 (6,062)
International Discovery Fund................ 1,220 (9,001)
Bond Fund................................... 2 (2)
Conservative Allocation Fund................ 1 (1)
Balanced Allocation Fund.................... (18) 17
Aggressive Allocation Fund.................. (13) 13
Equity Income Fund.......................... (141) (16,988)
</TABLE>
Federal Income Taxes:
It is the policy of each of the Funds to continue to qualify as a regulated
investment company by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of net investment income and net
realized capital gains sufficient to relieve it from all, or substantially
all, federal income taxes.
Expenses:
Expenses directly attributable to a Fund are charged to the Fund, while
expenses which are attributable to more than one Fund of the Group are
allocated among the respective Funds based upon relative net assets or
another appropriate basis. In addition, expenses that are directly
attributable to a specific class are charged only to that class.
Continued
158
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
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.
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
year ended May 31, 1999 were as follows (amounts in thousands):
<TABLE>
<CAPTION>
Purchases Sales
--------- ---------
<S> <C> <C>
Small Capitalization Fund................................ $ 432,572 $ 747,200
Mid Capitalization Fund.................................. 471,462 738,459
Large Capitalization Fund................................ 210,941 250,558
International Discovery Fund............................. 318,397 463,430
Limited Maturity Bond Fund............................... 213,808 254,936
Intermediate Government Obligations Fund................. 89,602 124,841
U.S. Government Income Fund.............................. 113,536 140,543
Bond Fund................................................ 1,239,048 1,361,115
Municipal Bond Fund...................................... 8,028 35,929
Michigan Municipal Bond Fund............................. 15,240 38,743
Conservative Allocation Fund............................. 35,759 33,273
Balanced Allocation Fund................................. 386,228 469,256
Aggressive Allocation Fund............................... 47,870 56,923
Equity Income Fund....................................... 177,804 291,812
</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 and 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. Investor C
Shares closed on August 28, 1998.
The Investor A Shares of the variable net asset value funds are subject to
initial sales charges imposed at the time of purchase, in accordance with the
Funds' prospectuses. Certain redemptions of Investor B Shares made within
five years of purchase (four years if purchased before January 1, 1997) are
subject to contingent deferred sales charges in accordance with the Funds'
prospectuses. Each class of shares for each Fund has identical rights and
privileges except with respect to distribution (12b-1) fees paid by the
Investor A Shares and Investor B and shareholder service fees paid by the
Investor B Shares, voting rights on matters affecting a single class of
shares and the exchange privileges of each class of shares.
Continued
159
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Prime U.S. Government
Obligations Fund Obligations Fund
------------------------------------ ------------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 (a) 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 605,433 $ 1,090,813 $ 621,672 $ 307,020 $ 561,666 $ 730,447
Dividends reinvested... 3,607 8,884 8,181 546 1,315 1,537
Cost of shares re-
deemed................ (812,049) (1,076,810) (582,286) (474,744) (605,875) (706,845)
--------- ----------- ---------- --------- --------- ---------
Change in net assets
from Investor A Share
transactions.......... $(203,009) $ 22,887 $ 47,567 $(167,178) $ (42,894) $ 25,139
========= =========== ========== ========= ========= =========
Investor B Shares:
Proceeds from shares
issued................ $ 1,445 $ 730 $ -- $ -- $ -- $ --
Dividends reinvested... 19 4 -- -- -- --
Cost of shares re-
deemed................ (1,086) (347) -- -- -- --
--------- ----------- ---------- --------- --------- ---------
Change in net assets
from Investor B Share
transactions.......... $ 378 $ 387 $ -- $ -- $ -- $ --
========= =========== ========== ========= ========= =========
Institutional Shares:
Proceeds from shares
issued................ $ 887,484 $ 921,653 $1,062,801 $ 228,665 $ 316,849 $ 398,008
Dividends reinvested... 49 4 12 23 -- --
Cost of shares re-
deemed................ (949,929) (908,035) (981,569) (292,597) (341,648) (395,295)
--------- ----------- ---------- --------- --------- ---------
Change in net assets
from Institutional
Share transactions.... $ (62,396) $ 13,622 $ 81,244 $ (63,909) $ (24,799) $ 2,713
========= =========== ========== ========= ========= =========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 605,433 1,090,780 621,672 307,020 561,666 730,448
Reinvested............. 3,607 8,891 8,181 546 1,315 1,536
Redeemed............... (812,058) (1,076,776) (582,286) (474,730) (605,875) (706,845)
--------- ----------- ---------- --------- --------- ---------
Change in Investor A
Shares................ (203,018) 22,895 47,567 (167,164) (42,894) 25,139
========= =========== ========== ========= ========= =========
Investor B Shares:
Issued................. 1,445 729 -- -- -- --
Reinvested............. 19 4 -- -- -- --
Redeemed............... (1,086) (347) -- -- -- --
--------- ----------- ---------- --------- --------- ---------
Change in Investor B
Shares................ 378 386 -- -- -- --
========= =========== ========== ========= ========= =========
Institutional Shares:
Issued................. 887,484 921,653 1,062,797 228,665 316,849 398,008
Reinvested............. 49 4 12 23 -- --
Redeemed............... (949,928) (908,035) (981,569) (292,613) (341,648) (395,295)
--------- ----------- ---------- --------- --------- ---------
Change in Institutional
Shares................ (62,395) 13,622 81,240 (63,925) (24,799) 2,713
========= =========== ========== ========= ========= =========
</TABLE>
- -------
(a) Fund commenced offering of Investor B shares on September 26, 1997.
Continued
160
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Tax-Free Treasury
Fund Fund
------------------------------------ --------------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ----------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 86,470 $ 293,914 $ 280,908 $ 835,457 $ 915,653 $ 1,034,231
Dividends reinvested... 462 914 824 318 554 627
Cost of shares re-
deemed................ (141,417) (287,187) (275,968) (1,066,829) (851,996) (1,017,589)
--------- --------- --------- ----------- --------- -----------
Change in net assets
from Investor A Share
transactions.......... $ (54,485) $ 7,641 $ 5,764 $ (231,054) $ 64,211 $ 17,269
========= ========= ========= =========== ========= ===========
Institutional Shares:
Proceeds from shares
issued................ $ 167,432 $ 148,667 $ 126,130 $ 992,405 $ 766,757 $ 689,368
Dividends reinvested... -- -- -- -- -- --
Cost of shares re-
deemed................ (161,361) (153,489) (123,383) (1,044,439) (769,538) (588,439)
--------- --------- --------- ----------- --------- -----------
Change in net assets
from Institutional
Share transactions.... $ 6,071 $ (4,822) $ 2,747 $ (52,034) $ (2,781) $ 100,929
========= ========= ========= =========== ========= ===========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 86,469 293,912 280,908 835,456 915,653 1,034,232
Reinvested............. 462 914 824 318 554 627
Redeemed............... (141,418) (287,188) (275,968) (1,066,829) (851,997) (1,017,589)
--------- --------- --------- ----------- --------- -----------
Change in Investor A
Shares................ (54,487) 7,638 5,764 (231,055) 64,210 17,270
========= ========= ========= =========== ========= ===========
Institutional Shares:
Issued................. 167,432 148,667 126,130 992,405 766,757 689,368
Reinvested............. -- -- -- -- -- --
Redeemed............... (161,361) (153,489) (123,383) (1,044,439) (769,538) (588,439)
--------- --------- --------- ----------- --------- -----------
Change in Institutional
Shares................ 6,071 (4,822) 2,747 (52,034) (2,781) 100,929
========= ========= ========= =========== ========= ===========
</TABLE>
Continued
161
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Small Mid
Capitalization Capitalization
Fund Fund
------------------------------------ ------------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 448,789 $ 742,080 $ 749,582 $ 112,759 $ 255,877 $ 188,598
Dividends reinvested... 10,457 8,345 23,998 7,986 15,034 22,250
Cost of shares re-
deemed................ (530,608) (771,128) (748,306) (156,097) (261,402) (177,354)
--------- --------- --------- --------- --------- ---------
Change in net assets
from Investor A Share
transactions.......... $ (71,362) $ (20,703) $ 25,274 $ (35,352) $ 9,509 $ 33,494
========= ========= ========= ========= ========= =========
Investor B Shares:
Proceeds from shares
issued................ $ 1,307 $ 8,110 $ 22,151 $ 916 $ 2,794 $ 7,531
Dividends reinvested... 3,253 2,254 5,725 2,600 4,415 5,491
Cost of shares re-
deemed................ (16,532) (12,631) (4,442) (9,069) (4,478) (2,176)
--------- --------- --------- --------- --------- ---------
Change in net assets
from Investor B Share
transactions.......... $ (11,972) $ (2,267) $ 23,434 $ (5,553) $ 2,731 $ 10,846
========= ========= ========= ========= ========= =========
Investor C Shares*:
Proceeds from shares
issued................ $ 365 $ 3,920 $ 9,826 $ 181 $ 877 $ 1,303
Dividends reinvested... -- 742 1,584 -- 407 458
Cost of shares re-
deemed................ (12,866) (3,708) (759) (2,183) (987) (456)
--------- --------- --------- --------- --------- ---------
Change in net assets
from Investor B Share
transactions.......... $ (12,501) $ 954 $ 10,651 $ (2,002) $ 297 $ 1,305
========= ========= ========= ========= ========= =========
Institutional Shares:
Proceeds from shares
issued................ $ 43,684 $ 147,252 $ 270,110 $ 34,083 $ 85,360 $ 146,813
Dividends reinvested... 26,444 20,267 54,110 38,894 67,177 112,225
Cost of shares re-
deemed................ (254,355) (208,250) (156,401) (240,008) (168,207) (231,028)
--------- --------- --------- --------- --------- ---------
Change in net assets
from Institutional
Share transactions.... $(184,227) $ (40,731) $ 167,819 $(167,031) $ (15,670) $ 28,010
========= ========= ========= ========= ========= =========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 20,256 27,212 25,792 7,624 16,378 11,587
Reinvested............. 530 326 841 644 1,093 1,428
Redeemed............... (24,004) (28,041) (25,258) (10,699) (16,582) (11,083)
--------- --------- --------- --------- --------- ---------
Change in Investor A
Shares................ (3,218) (503) 1,375 (2,431) 889 1,932
========= ========= ========= ========= ========= =========
Investor B Shares:
Issued................. 62 299 806 66 185 443
Reinvested............. 171 90 205 224 338 365
Redeemed............... (834) (472) (170) (699) (302) (135)
--------- --------- --------- --------- --------- ---------
Change in Investor B
Shares................ (601) (83) 841 (409) 221 673
========= ========= ========= ========= ========= =========
Investor C Shares*:
Issued................. 14 145 356 13 58 79
Reinvested............. -- 30 56 -- 31 30
Redeemed............... (602) (140) (29) (168) (66) (29)
--------- --------- --------- --------- --------- ---------
Change in Investor C
Shares................ (588) 35 383 (155) 23 80
========= ========= ========= ========= ========= =========
Institutional Shares:
Issued................. 1,959 5,320 9,653 2,425 5,577 8,771
Reinvested............. 1,312 780 1,873 3,097 4,836 7,139
Redeemed............... (11,483) (7,510) (5,260) (17,388) (10,548) (12,739)
--------- --------- --------- --------- --------- ---------
Change in Institutional
Shares................ (8,212) (1,410) 6,266 (11,866) (135) 3,171
========= ========= ========= ========= ========= =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
162
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Large International
Capitalization Discovery
Fund Fund
----------------------------------- ------------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 11,843 $ 10,407 $ 11,465 $ 11,371 $ 6,427 $ 63,853
Dividends reinvested... 357 1,848 20 1,766 1,402 --
Cost of shares re-
deemed................ (13,766) (5,105) (2,540) (27,594) (13,589) (61,621)
-------- --------- --------- --------- -------- ---------
Change in net assets
from Investor A Share
transactions.......... $ (1,566) $ 7,150 $ 8,945 $ (14,457) $ (5,760) $ 2,232
======== ========= ========= ========= ======== =========
Investor B Shares:
Proceeds from shares
issued................ $ 4,942 $ 5,300 $ 3,029 $ 360 $ 1,492 $ 3,979
Dividends reinvested... 206 685 11 568 434 --
Cost of shares re-
deemed................ (3,437) (748) (341) (4,826) (2,654) (1,688)
-------- --------- --------- --------- -------- ---------
Change in net assets
from Investor B Share
transactions.......... $ 1,711 $ 5,237 $ 2,699 $ (3,898) $ (728) $ 2,291
======== ========= ========= ========= ======== =========
Investor C Shares*:
Proceeds from shares
issued................ $ 100 $ 282 $ 43 $ 81 $ 449 $ 532
Dividends reinvested... -- 9 -- -- 32 --
Cost of shares re-
deemed................ (368) (73) (10) (964) (340) (241)
-------- --------- --------- --------- -------- ---------
Change in net assets
from Investor B Share
transactions.......... $ (268) $ 218 $ 33 $ (883) $ 141 $ 291
======== ========= ========= ========= ======== =========
Institutional Shares:
Proceeds from shares
issued................ $ 65,788 $ 71,064 $ 137,399 $ 35,881 $ 60,496 $ 119,834
Dividends reinvested... 4,089 23,970 2,431 10,376 7,665 62
Cost of shares re-
deemed................ (96,262) (119,622) (162,472) (165,321) (75,091) (116,808)
-------- --------- --------- --------- -------- ---------
Change in net assets
from Institutional
Share transactions.... $(26,385) $ (24,588) $ (22,642) $(119,064) $ (6,930) $ 3,088
======== ========= ========= ========= ======== =========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 636 682 899 763 410 4,588
Reinvested............. 19 134 2 118 96 --
Redeemed............... (745) (329) (199) (1,820) (872) (4,425)
-------- --------- --------- --------- -------- ---------
Change in Investor A
Shares................ (90) 487 702 (939) (366) 163
======== ========= ========= ========= ======== =========
Investor B Shares:
Issued................. 273 349 241 25 97 282
Reinvested............. 11 50 1 39 31 --
Redeemed............... (186) (49) (28) (332) (178) (118)
-------- --------- --------- --------- -------- ---------
Change in Investor B
Shares................ 98 350 214 (268) (50) 164
======== ========= ========= ========= ======== =========
Investor C Shares*:
Issued................. 6 19 4 5 29 36
Reinvested............. -- 1 -- -- 2 --
Redeemed............... (23) (6) (1) (68) (22) (16)
-------- --------- --------- --------- -------- ---------
Change in Investor C
Shares................ (17) 14 3 (63) 9 20
======== ========= ========= ========= ======== =========
Institutional Shares:
Issued................. 3,587 4,704 11,403 2,327 3,912 8,149
Reinvested............. 214 1,731 198 681 519 4
Redeemed............... (5,165) (7,791) (12,606) (10,816) (4,781) (7,985)
-------- --------- --------- --------- -------- ---------
Change in Institutional
Shares................ (1,364) (1,356) (1,005) (7,808) (350) 168
======== ========= ========= ========= ======== =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
163
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Intermediate Government
Limited Maturity Bond Fund Obligations Fund
----------------------------------- -----------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 11,765 $ 24,130 $ 17,211 $ 1,179 $ 520 $ 1,090
Dividends reinvested... 1,546 1,606 903 376 581 759
Cost of shares
redeemed.............. (30,528) (11,582) (5,131) (5,691) (5,456) (6,308)
-------- -------- -------- -------- -------- --------
Change in net assets
from Investor A Share
transactions.......... $(17,217) $ 14,154 $ 12,983 $ (4,136) $ (4,355) $ (4,459)
======== ======== ======== ======== ======== ========
Investor B Shares:
Proceeds from shares
issued................ $ 87 $ 520 $ 457 $ 85 $ 169 $ 238
Dividends reinvested... 44 48 68 56 78 79
Cost of shares
redeemed.............. (854) (509) (583) (727) (396) (195)
-------- -------- -------- -------- -------- --------
Change in net assets
from Investor B Share
transactions.......... $ (723) $ 59 $ (58) $ (586) $ (149) $ 122
======== ======== ======== ======== ======== ========
Investor C Shares*:
Proceeds from shares
issued................ $ 5 $ 3,813 $ 40 $ 11 $ 71 $ 119
Dividends reinvested... 19 52 1 3 10 7
Cost of shares
redeemed.............. (2,235) (1,705) (11) (252) (42) (13)
-------- -------- -------- -------- -------- --------
Change in net assets
from Investor B Share
transactions.......... $ (2,211) $ 2,160 $ 30 $ (238) $ 39 $ 113
======== ======== ======== ======== ======== ========
Institutional Shares:
Proceeds from shares
issued................ $ 28,681 $ 66,363 $ 49,609 $ 12,915 $ 31,582 $ 27,055
Dividends reinvested... 2,473 2,591 3,278 2,021 2,482 3,120
Cost of shares
redeemed.............. (57,561) (54,768) (53,531) (51,589) (53,203) (68,086)
-------- -------- -------- -------- -------- --------
Change in net assets
from Institutional
Share transactions.... $(26,407) $ 14,186 $ (644) $(36,653) $(19,139) $(37,911)
======== ======== ======== ======== ======== ========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 1,233 2,540 1,814 119 54 113
Reinvested............. 162 169 95 38 59 78
Redeemed............... (3,197) (1,219) (541) (572) (555) (649)
-------- -------- -------- -------- -------- --------
Change in Investor A
Shares................ (1,802) 1,490 1,368 (415) (442) (458)
======== ======== ======== ======== ======== ========
Investor B Shares:
Issued................. 10 55 48 9 17 24
Reinvested............. 5 5 7 6 8 8
Redeemed............... (90) (54) (61) (74) (41) (20)
-------- -------- -------- -------- -------- --------
Change in Investor B
Shares................ (75) 6 (6) (59) (16) 12
======== ======== ======== ======== ======== ========
Investor C Shares*:
Issued................. -- 410 4 2 8 12
Reinvested............. 2 6 -- -- 1 1
Redeemed............... (239) (184) (1) (26) (5) (1)
-------- -------- -------- -------- -------- --------
Change in Investor C
Shares................ (237) 232 3 (24) 4 12
======== ======== ======== ======== ======== ========
Institutional Shares:
Issued................. 3,008 6,981 5,230 1,296 3,209 2,785
Reinvested............. 260 273 346 203 253 322
Redeemed............... (6,037) (5,764) (5,641) (5,174) (5,405) (7,009)
-------- -------- -------- -------- -------- --------
Change in Institutional
Shares................ (2,769) 1,490 (65) (3,675) (1,943) (3,902)
======== ======== ======== ======== ======== ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
164
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
U.S. Government Income Fund Bond Fund
----------------------------------- ------------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 12,842 $ 13,553 $ 18,605 $ 4,227 $ 1,553 $ 4,657
Dividends reinvested... 1,787 2,471 2,469 621 830 938
Cost of shares
redeemed.............. (30,609) (20,652) (14,174) (9,208) (6,086) (6,371)
-------- -------- -------- --------- --------- ---------
Change in net assets
from Investor A Share
transactions.......... $(15,980) $ (4,628) $ 6,900 $ (4,360) $ (3,703) $ (776)
======== ======== ======== ========= ========= =========
Investor B Shares:
Proceeds from shares
issued................ $ 979 $ 4,184 $ 6,266 $ 228 $ 1,078 $ 1,973
Dividends reinvested... 567 772 867 224 259 221
Cost of shares
redeemed.............. (8,668) (4,962) (3,041) (2,173) (1,076) (752)
-------- -------- -------- --------- --------- ---------
Change in net assets
from Investor B Share
transactions.......... $ (7,122) $ (6) $ 4,092 $ (1,721) $ 261 $ 1,442
======== ======== ======== ========= ========= =========
Investor C Shares*:
Proceeds from shares
issued................ $ 7 $ 379 $ 66 $ 62 $ 387 $ 336
Dividends reinvested... 3 8 5 7 26 17
Cost of shares
redeemed.............. (376) (94) (71) (670) (342) (62)
-------- -------- -------- --------- --------- ---------
Change in net assets
from Investor B Share
transactions.......... $ (366) $ 293 $ -- $ (601) $ 71 $ 291
======== ======== ======== ========= ========= =========
Institutional Shares:
Proceeds from shares
issued................ $ 34,064 $ 45,541 $ 47,928 $ 44,541 $ 81,867 $ 92,145
Dividends reinvested... 818 897 948 16,294 18,662 22,432
Cost of shares
redeemed.............. (44,141) (35,690) (29,177) (164,380) (126,566) (181,073)
-------- -------- -------- --------- --------- ---------
Change in net assets
from Institutional
Share transactions.... $ (9,259) $ 10,748 $ 19,699 $(103,545) $ (26,037) $ (66,496)
======== ======== ======== ========= ========= =========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 1,387 1,471 2,020 421 158 488
Reinvested............. 193 269 269 62 84 98
Redeemed............... (3,300) (2,238) (1,540) (921) (615) (666)
-------- -------- -------- --------- --------- ---------
Change in Investor A
Shares................ (1,720) (498) 749 (438) (373) (80)
======== ======== ======== ========= ========= =========
Investor B Shares:
Issued................. 105 456 681 23 109 205
Reinvested............. 62 84 95 22 26 23
Redeemed............... (937) (539) (331) (218) (108) (78)
-------- -------- -------- --------- --------- ---------
Change in Investor B
Shares................ (770) 1 445 (173) 27 150
======== ======== ======== ========= ========= =========
Investor C Shares*:
Issued................. 1 41 7 6 39 35
Reinvested............. -- 1 1 1 3 2
Redeemed............... (40) (10) (8) (67) (35) (6)
-------- -------- -------- --------- --------- ---------
Change in Investor C
Shares................ (39) 32 -- (60) 7 31
======== ======== ======== ========= ========= =========
Institutional Shares:
Issued................. 3,676 4,942 5,204 4,422 8,245 9,555
Reinvested............. 88 97 103 1,621 1,884 2,332
Redeemed............... (4,755) (3,871) (3,165) (16,419) (12,716) (18,764)
-------- -------- -------- --------- --------- ---------
Change in Institutional
Shares................ (991) 1,168 2,142 (10,376) (2,587) (6,877)
======== ======== ======== ========= ========= =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
Continued
165
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Municipal Bond Fund Michigan Municipal Bond Fund
----------------------------------- -----------------------------------
For the For the For the For the For the For the
year ended eleven months year ended year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 1999 1998 1997
---------- ------------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ 2,525 $ 1,862 $ 8,560 $ 3,633 $ 7,990 $ 7,107
Dividends reinvested... 275 406 270 1,127 1,275 1,238
Cost of shares
redeemed.............. (5,310) (2,351) (7,155) (14,623) (9,650) (7,170)
-------- -------- -------- -------- -------- --------
Change in net assets
from Investor A Share
transactions.......... $ (2,510) $ (83) $ 1,675 $ (9,863) $ (385) $ 1,175
======== ======== ======== ======== ======== ========
Investor B Shares:
Proceeds from shares
issued................ $ 25 $ 80 $ 341 $ 93 $ 996 $ 590
Dividends reinvested... 14 29 23 96 105 104
Cost of shares
redeemed.............. (248) (336) (177) (914) (676) (806)
-------- -------- -------- -------- -------- --------
Change in net assets
from Investor B Share
transactions.......... $ (209) $ (227) $ 187 $ (725) $ 425 $ (112)
======== ======== ======== ======== ======== ========
Institutional Shares:
Proceeds from shares
issued................ $ 7,302 $ 15,154 $ 21,299 $ 30,857 $ 40,600 $ 35,903
Dividends reinvested... 424 514 393 1,118 1,308 1,118
Cost of shares
redeemed.............. (33,407) (26,380) (20,929) (43,116) (33,573) (29,433)
-------- -------- -------- -------- -------- --------
Change in net assets
from Institutional
Share transactions.... $(25,681) $(10,712) $ 763 $(11,141) $ 8,335 $ 7,588
======== ======== ======== ======== ======== ========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. 237 175 822 328 725 656
Reinvested............. 26 39 26 102 116 114
Redeemed............... (503) (223) (688) (1,320) (872) (662)
-------- -------- -------- -------- -------- --------
Change in Investor A
Shares................ (240) (9) 160 (890) (31) 108
======== ======== ======== ======== ======== ========
Investor B Shares:
Issued................. 2 8 33 8 90 54
Reinvested............. 1 3 2 9 9 10
Redeemed............... (23) (32) (17) (82) (61) (74)
-------- -------- -------- -------- -------- --------
Change in Investor B
Shares................ (20) (21) 18 (65) 38 (10)
======== ======== ======== ======== ======== ========
Institutional Shares:
Issued................. 691 1,434 2,027 2,782 3,678 3,317
Reinvested............. 40 49 37 101 119 103
Redeemed............... (3,163) (2,491) (1,994) (3,888) (3,042) (2,720)
-------- -------- -------- -------- -------- --------
Change in Institutional
Shares................ (2,432) (1,008) 70 (1,005) 755 700
======== ======== ======== ======== ======== ========
</TABLE>
Continued
166
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Conservative Allocation Fund Balanced Allocation Fund
------------------------------------- ------------------------------------
For the For the December 30, For the For the For the
year ended eleven months 1996 to year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 (a) 1999 1998 1997
---------- ------------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 2,309 $ 2,097 $ 3,121
Dividends reinvested... -- -- -- 796 923 2,336
Cost of shares
redeemed.............. -- -- -- (6,419) (3,637) (3,299)
------ ------ ------- --------- -------- --------
Change in net assets
from Investor A Share
transactions.......... $ -- $ -- $ -- $ (3,314) $ (617) $ 2,158
====== ====== ======= ========= ======== ========
Investor B Shares:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 329 $ 1,900 $ 2,041
Dividends reinvested... -- -- -- 268 305 613
Cost of shares
redeemed.............. -- -- -- (2,724) (959) (558)
------ ------ ------- --------- -------- --------
Change in net assets
from Investor B Share
transactions.......... $ -- $ -- $ -- $ (2,127) $ 1,246 $ 2,096
====== ====== ======= ========= ======== ========
Investor C Shares*:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 94 $ 458 $ 501
Dividends reinvested... -- -- -- 3 41 66
Cost of shares
redeemed.............. -- -- -- (986) (417) (132)
------ ------ ------- --------- -------- --------
Change in net assets
from Investor B Share
transactions.......... $ -- $ -- $ -- $ (889) $ 82 $ 435
====== ====== ======= ========= ======== ========
Institutional Shares:
Proceeds from shares
issued................ $3,936 $9,933 $11,873 $ 29,812 $ 67,862 $161,814
Dividends reinvested... 995 610 122 10,268 12,123 14,642
Cost of shares
redeemed.............. (1,684) (4,795) (1,958) (121,859) (78,144) (46,444)
------ ------ ------- --------- -------- --------
Change in net assets
from Institutional
Share transactions.... $3,247 $5,748 $10,037 $ (81,779) $ 1,841 $130,012
====== ====== ======= ========= ======== ========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. -- -- -- 170 156 242
Reinvested............. -- -- -- 58 70 187
Redeemed............... -- -- -- (466) (270) (260)
------ ------ ------- --------- -------- --------
Change in Investor A
Shares................ -- -- -- (238) (44) 169
====== ====== ======= ========= ======== ========
Investor B Shares:
Issued................. -- -- -- 24 142 160
Reinvested............. -- -- -- 20 23 49
Redeemed............... -- -- -- (199) (71) (44)
------ ------ ------- --------- -------- --------
Change in Investor B
Shares................ -- -- -- (155) 94 165
====== ====== ======= ========= ======== ========
Investor C Shares*:
Issued................. -- -- -- 7 34 39
Reinvested............. -- -- -- -- 3 5
Redeemed............... -- -- -- (75) (31) (10)
------ ------ ------- --------- -------- --------
Change in Investor C
Shares................ -- -- -- (68) 6 34
====== ====== ======= ========= ======== ========
Institutional Shares:
Issued................. 354 931 1,175 2,170 5,034 12,910
Reinvested............. 90 57 12 750 922 1,172
Redeemed............... (152) (445) (194) (8,814) (5,827) (3,683)
------ ------ ------- --------- -------- --------
Change in Institutional
Shares................ 292 543 993 (5,894) 129 10,399
====== ====== ======= ========= ======== ========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
(a) Period from commencement of operations.
Continued
167
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
(Amounts in Thousands)
Aggressive Allocation Fund Equity Income Fund
------------------------------------- -----------------------------------
For the For the December 30, For the For the For the
year ended eleven months 1996 to year ended eleven months year ended
May 31, ended May 31, June 30, May 31, ended May 31, June 30,
1999 1998 1997 (a) 1999 1998 1997
---------- ------------- ------------ ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Investor A Shares:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 6,299 $ 10,194 $ 17,476
Dividends reinvested... -- -- -- 11,212 16,166 9,217
Cost of shares re-
deemed................ -- -- -- (36,843) (20,575) (19,770)
-------- -------- ------- -------- -------- ---------
Change in net assets
from Investor A Share
transactions.......... $ -- $ -- $ -- $(19,332) $ 5,785 $ 6,923
======== ======== ======= ======== ======== =========
Investor B Shares:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 1,162 $ 6,379 $ 6,794
Dividends reinvested... -- -- -- 3,079 3,856 1,506
Cost of shares re-
deemed................ -- -- -- (8,817) (3,200) (1,807)
-------- -------- ------- -------- -------- ---------
Change in net assets
from Investor B Share
transactions.......... $ -- $ -- $ -- $ (4,576) $ 7,035 $ 6,493
======== ======== ======= ======== ======== =========
Investor C Shares*:
Proceeds from shares
issued................ $ -- $ -- $ -- $ 175 $ 628 $ 608
Dividends reinvested... -- -- -- 2 120 28
Cost of shares re-
deemed................ -- -- -- (1,168) (438) (94)
-------- -------- ------- -------- -------- ---------
Change in net assets
from Investor B Share
transactions.......... $ -- $ -- $ -- $ (991) $ 310 $ 542
======== ======== ======= ======== ======== =========
Institutional Shares:
Proceeds from shares
issued................ $ 7,226 $ 9,513 $39,922 $ 27,050 $ 24,482 $ 53,563
Dividends reinvested... 843 446 195 7,279 11,116 7,868
Cost of shares re-
deemed................ (16,270) (19,093) (2,857) (85,953) (65,461) (116,931)
-------- -------- ------- -------- -------- ---------
Change in net assets
from Institutional
Share transactions.... $ (8,201) $ (9,134) $37,260 $(51,624) $(29,863) $ (55,500)
======== ======== ======= ======== ======== =========
SHARE TRANSACTIONS:
Investor A Shares:
Issued................. -- -- -- 360 534 991
Reinvested............. -- -- -- 678 928 539
Redeemed............... -- -- -- (2,082) (1,074) (1,112)
-------- -------- ------- -------- -------- ---------
Change in Investor A
Shares................ -- -- -- (1,044) 388 418
======== ======== ======= ======== ======== =========
Investor B Shares:
Issued................. -- -- -- 65 334 385
Reinvested............. -- -- -- 188 223 88
Redeemed............... -- -- -- (501) (170) (103)
-------- -------- ------- -------- -------- ---------
Change in Investor B
Shares................ -- -- -- (248) 387 370
======== ======== ======= ======== ======== =========
Investor C Shares*:
Issued................. -- -- -- 10 34 35
Reinvested............. -- -- -- -- 7 1
Redeemed............... -- -- -- (68) (23) (5)
-------- -------- ------- -------- -------- ---------
Change in Investor C
Shares................ -- -- -- (58) 18 31
======== ======== ======= ======== ======== =========
Institutional Shares:
Issued................. 621 858 3,954 1,560 1,317 3,180
Reinvested............. 73 40 19 442 640 460
Redeemed............... (1,386) (1,712) (281) (4,892) (3,413) (6,623)
-------- -------- ------- -------- -------- ---------
Change in Institutional
Shares................ (692) (814) 3,692 (2,890) (1,456) (2,983)
======== ======== ======= ======== ======== =========
</TABLE>
- -------
* Investor C class of shares closed on August 28, 1998.
(a) Period from commencement of operations.
Continued
168
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
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 average daily net assets of the Conservative Allocation Fund, the Balanced
Allocation Fund, and the Aggressive Allocation Fund assets invested in foreign
securities. National City Bank serves as the Group's Custodian.
BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"),
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 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 served as the 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 non-affiliated
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 May 31, 1999, SEI received $134,838 in commissions from sales of
shares of the variable net asset value funds of which $45,793 was reallowed to
non-affiliated 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 the 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 the 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 the distributor to pay banks, including the IMC,
broker dealers and other institutions, or to reimburse the distributor or its
affiliates for administration, distribution, and shareholder service assistance
in connection with the distribution of Fund shares. On August 28, 1998, the
Investor C Plan was terminated in connection with the closing of such share
class.
Continued
169
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
Fees may be voluntarily reduced to assist the Funds in maintaining competitive
expense ratios. Information regarding these transactions is as follows for the
year ended May 31, 1999 (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
(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.............. $135 $ 46 $ 23 $405
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.............. $ 96 $109 $ 32 $165
12b-1 Fees Investor B:
Annual fee
(percentage of average net assets)... 0.75% -- -- --
Shareholder Service Fees Investor B:
Annual fee
(percentage of average net assets)... 0.25% -- -- --
Transfer Agent Fees(a):............... $ 25 $ 11 $ 8 $ 14
Fund Accountant Fees:................. 145 53 34 79
</TABLE>
- -------
(a) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 1998.
Continued
170
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
Small Mid Large International
Capitalization Capitalization Capitalization Discovery
Fund Fund Fund Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
Investment Advisory
Fees:
Annual fee
(percentage of average
net assets)............ 1.00% 1.00% 0.80% 1.17%(a)
Administration Fees:
Annual fee
(percentage of average
net assets)............ 0.20% 0.20% 0.20% 0.20%
12b-1 Fees Investor A:
Annual fee
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
12b-1 Fees Investor B:
Annual fee
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
12b-1 Fees Investor C:
Annual fee
(percentage of average
net assets)............ 0.75% 0.75% 0.75% 0.75%
Shareholder Service Fees
Investor B:
Annual fee
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
Shareholder Service Fees
Investor C:
Annual fee
(percentage of average
net assets)............ 0.25% 0.25% 0.25% 0.25%
Transfer Agent(b):...... $ 139 $ 82 $ 40 $ 67
Fund Accountant Fees:... 127 134 120 169
</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
171
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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.............. $ 333 $ 68 $ 639 $ 189
Administration Fees:
Annual fee before voluntary fee
reductions
(percentage of average net assets).. 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions............. $ 83 $ 80 $ 103 $ 223
12b-1 Fees Investor A:
Annual fee
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
12b-1 Fees Investor B:
Annual fee
(percentage of average net assets).. 0.75% 0.75% 0.75% 0.75%
12b-1 Fees Investor C:
Annual fee
(percentage of average net assets).. 0.75% 0.75% 0.75% 0.75%
Shareholder Service Fees Investor B:
Annual fee
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
Shareholder Service Fees Investor C:
Annual fee
(percentage of average net assets).. 0.25% 0.25% 0.25% 0.25%
Transfer Agent(a): .................. $ 24 $ 26 $ 41 $ 37
Fund Accountant Fees: ............... 66 76 99 133
</TABLE>
- -------
(a) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 1998.
Continued
172
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<TABLE>
<CAPTION>
Michigan
Municipal Municipal Conservative Balanced
Bond Bond Allocation Allocation
Fund Fund Fund Fund
--------- --------- ------------ ----------
<S> <C> <C> <C> <C>
Investment Advisory Fees:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)......................... 0.74% 0.74% 1.00% 1.00%
Voluntary fee reduction.......... $234 $453 $ 56 $630
Administration Fees:
Annual fee before voluntary fee
reductions
(percentage of average net
assets)......................... 0.20% 0.20% 0.20% 0.20%
Voluntary fee reductions......... $119 $230 -- --
12b-1 Fees Investor A:
Annual fee
(percentage of average net
assets) ........................ 0.25% 0.25% -- 0.25%
12b-1 Fees Investor B:
Annual fee
(percentage of average net
assets) ........................ 0.75% 0.75% -- 0.75%
12b-1 Fees Investor C:
Annual fee
(percentage of average net
assets) ........................ -- -- -- 0.75%
Shareholder Service Fees Investor
B:
Annual fee
(percentage of average net
assets) ........................ 0.25% 0.25% -- 0.25%
Shareholder Service Fees Investor
C:
Annual fee
(percentage of average net
assets) ........................ -- -- -- 0.25%
Transfer Agent(a): .............. $ 16 $ 24 $ 2 $ 38
Fund Accountant Fees: ........... 61 95 12 102
</TABLE>
- -------
(a) Represents transfer agent fees paid to BISYS Ohio for the period June 1,
1998 to September 11, 1998.
Continued
173
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
<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.................................... $ 44 --
Administration Fees:
Annual fee
(percentage of average net assets)........................ 0.20% 0.20%
12b-1 Fees Investor A:
Annual fee
(percentage of average net assets)........................ -- 0.25%
12b-1 Fees Investor B:
Annual fee
(percentage of average net assets)........................ -- 0.75%
12b-1 Fees Investor C:
Annual fee
(percentage of average net assets)........................ -- 0.75%
Shareholder Service Fees Investor B:
Annual fee
(percentage of average net assets)........................ -- 0.25%
Shareholder Service Fees Investor C:
Annual fee
(percentage of average net assets)........................ -- 0.25%
Transfer Agent(a): ........................................ $ 2 $ 84
Fund Accountant Fees: ..................................... 30 103
</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. This Fund is more susceptible
to factors adversely affecting issuers of Michigan municipal securities than
a fund that is not concentrated in these issuers to the same extent.
7. Common Trust Conversion:
On October 10, 1998, the Mid Capitalization Fund issued shares to acquire all
the assets and liabilities of a certain common trust fund of National City
Bank. The following is a summary of shares issued, net assets converted, net
asset value per share and unrealized appreciation as of the conversion date
(amounts in thousands, except per share amount):
<TABLE>
<CAPTION>
Net
Asset
Value
Net per Unrealized
Shares Assets Share Appreciation
------ ------ ------ ------------
<S> <C> <C> <C> <C>
Mid Capitalization Fund..................... 323 $3,548 $10.99 $641
</TABLE>
Continued
174
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
8. Federal Income Tax Information (unaudited):
For the taxable year ended May 31, 1999, the following percentages of income
dividends paid by the Funds qualify for the dividends received deduction
available to corporations:
<TABLE>
<CAPTION>
Qualified
Dividend Income
---------------
<S> <C>
Mid Capitalization Fund....................................... 10.63%
Bond Fund..................................................... 0.02%
Conservative Allocation Fund.................................. 4.16%
Balanced Allocation Fund...................................... 8.77%
Aggressive Allocation Fund.................................... 20.65%
Equity Income Fund............................................ 100.00%
</TABLE>
For federal income tax purposes, the following Funds have capital loss
carryforwards as of May 31, 1999, which are available to offset future
capital gains, if any (amounts in thousands):
<TABLE>
<CAPTION>
Amount Expires
------ -------
<S> <C> <C>
U.S. Government Obligations Fund............................... $ 1 2002
Limited Maturity Bond Fund..................................... 4,114 2002
2,458 2003
479 2004
1,140 2005
724 2006
Intermediate Government Obligations Fund....................... 4,741 2002
2,891 2003
2,923 2005
U.S. Government Income Fund.................................... 1,455 2003
1,271 2004
2,853 2005
</TABLE>
Under current tax law, operating losses, capital losses and foreign currency
losses realized after October 31, may be deferred and treated as occurring on
the first day of the next fiscal year. As of May 31, 1999, the following
funds have deferred losses of (amounts in thousands):
<TABLE>
<S> <C>
International Discovery Fund .......................................... $ 68
Intermediate Government Obligations Fund............................... 620
U.S. Government Income Fund............................................ 468
Bond Fund.............................................................. 1,629
Balanced Allocation Fund .............................................. 54
Aggressive Allocation Fund............................................. 11
</TABLE>
During the year ended May 31, 1999, the Tax-Free Fund, the Municipal Bond
Fund and the Michigan Municipal Bond Fund declared $3,510,893, $4,244,160 and
$9,105,098, respectively, of tax-exempt income distributions.
Continued
175
<PAGE>
Notes to Financial Statements, continued
- --------------------------------------------------------------------------------
The Parkstone Group of Funds May 31, 1999
During the year ended May 31, 1999, the Funds declared long-term capital gain
distributions in the following amounts (amounts in thousands):
<TABLE>
<CAPTION>
20% Capital
Gains
-----------
<S> <C>
Small Capitalization Fund......................................... $52,717
Mid Capitalization Fund........................................... 90,991
Large Capitalization Fund......................................... 13,085
International Discovery Fund...................................... 30,803
Municipal Bond Fund............................................... 912
Michigan Municipal Bond Fund...................................... 1,480
Conservative Allocation Fund...................................... 604
Balanced Allocation Fund.......................................... 5,739
Aggressive Allocation Fund........................................ 557
Equity Income Fund................................................ 59,332
</TABLE>
9. Subsequent Event:
On August 6, 1999, the Conservative Allocation and Aggressive Allocation
Funds will liquidate their net assets to the outstanding shareholders.
Continued
176
<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
Garvice D. Kincaid 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 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
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
Money Market Funds
Parkstone Prime Obligations Funds [LOGO APPEARS HERE]
Parkstone U.S. Government Obligations Fund
Parkstone Tax-Free Fund
Parkstone Treasury Fund
--------------------
BULK RATE
U.S. POSTAGE
PAID
LANCASTER, PA
PERMIT NO. 1793
--------------------
PAR-F-007-0100
